“FACED with workers’ continuing clamor for a significant wage hike, the Department of Trade and Industry is resorting to the age-old tactic of blackmailing workers with threats of massive layoffs.”
This was the statement of labor center Kilusang Mayo Uno as it picketed the DTI office in Makati City on Monday to condemn Trade Secretary Gregory Domingo’s statement last week that the Aquino administration is opposed to the P125 wage-increase bill in the House of Representatives because the said measure will supposedly make the country unattractive to investors and cause massive layoffs.
Domingo was referring to House Bill 375 filed by Party-list Rep. Rafael Mariano of Anakpawis, which seeks to legislate a P125 across-the-board wage increase nationwide.
“The DTI had to make the statement because it knows that the Filipino workers and people are still clamoring that the government approve a significant wage increase, amid the rising prices of basic goods and services, especially oil. It’s so-called basis, however, is as discredited as it is old,” said Nitz Gonzaga, KMU vice chairman for women.
“It is not labor cost that is eating up the biggest chunk of capitalists’ cost of production, but high energy cost—the highest in Asia. Domingo is trying to deceive workers in exaggerating the possible impact of a substantial wage hike, while keeping silent on energy cost which is afflicting investors, especially small Filipino businesses,” Gonzaga stressed.
The protestors burned effigies of President Aquino and Domingo with the words “Department na Tubo ang Inuuna,” playing on the agency’s acronym.
KMU cited a research released by independent think tank Ibon Foundation that a P125 across-the-board wage increase will only mean a 15- percent reduction in businessmen’s profits, which shows that such a hike should not cause massive retrenchment of workers.
“The problem is that investors are unwilling to allow even a minimal reduction in their profits despite the intense poverty and hunger being suffered by workers. The DTI is serving as the businessmen’s spokesman in echoing the latter’s threat of massive retrenchment to workers,” Gonzaga said.
“The truth is that investors have steadily amassed greater profits through the years while workers’ wages have been kept at the barest minimum. This workers know, that is why threats of massive layoffs will not deter us from fighting for a significant wage hike in the form of the P125 wage increase bill,” she added.
