If some self-proclaimed business leaders had their way, wages would have remained the same for the last 40 years as they have not in one instance supported any move to raise workers’ pay, Senator Chiz Escudero said.
Joining them, Escudero said, “are ivory tower individuals who love to preach about the economics of a running business when they themselves have not even managed a sari-sari store.”
Whenever talks on raising the minimum wage begin, whether in Congress or in wage boards, the veteran legislator noted “these are always met with the shrill warnings of these individuals that the economy will go bust if we give workers their due.”
“Hindi naman gumuho ang lupa and the sky is still up there and has not fallen.”
“Tuwina na lang ‘pag may diskusyon sa wage increase, maglalabas na ang mga iyan ng kanilang crystal ball at tatakutin tayo na babagsak ang ekonomiya,” the seasoned lawmaker said, adding that after the round of wage hikes have been implemented, “hindi naman gumuho ang lupa and the sky is still up there and has not fallen.”
The senator also scored the contrasting reception that tax breaks for business and wage hike for workers receive.
“They taut the steep cut in Corporate Income Tax (CIT) rates for business, saving them billions, as an economic necessity, while they treat a wage increase of a few pesos for workers, as if it were economic sabotage,” he stressed.
In 2021, projected foregone revenues “lavishly given to the moneyed class was almost P139 billion, and they called it a form of economic stimuli, for the wealthy who did not ask for it.”
Escudero recalled proponents of tax breaks for the rich of having argued that profits retained as a result of the lowering of the CIT will be used to retain payroll, or boost pay.
“Sabi nila, manggagawa daw ang unang makakatikim ng dibidendo sa mga natipid na buwis. Na sa halip na sa BIR mapupunta, sa bulsa ng manggagawa mapupunta,” he said. “Nangyari ba ito? Nasaan ang plowbacks? Regardless, I am holding them to their promise. Support a wage hike which remains as the best profit-sharing scheme, that will benefit those who made earnings possible, not some shareholder from a distant land.”
According to Escudero, labor groups have presented data which showed that for large firms who have racked up P1.1 trillion in annual profits, the cost of a P170 daily wage hike for their three million workers would account for about 14 percent of their profits.
“Para naman sa 1.8 milyon na mga kawani ng mga maliit o small enterprises, ang halaga ng wage increase ay katumbas ng 17 porsyento ng kanilang kita. This should be debunked by oppositors, with facts, and not with the old and tired scare tactics, without proof,” he said.
“We can craft the language that responds to their situation.”
Escudero, however, conceded that if many microenterprises, or those with less than 10 employees and assets not exceeding P3 million, will be distressed by legislated pay increase, “then we can craft the language that responds to their situation.”
Another study that has not been disproven is that if adjusted for inflation, minimum wages across 17 regions are worth less today than in July 1989, when the last legislated nationwide wage took effect, he said.
While the NCR floor wage of P610 daily has been used as reference, the fact is it varies by region, by general type of work, that in one region there is one minimum wage that is pegged at P306 a day, Escudero pointed out.
“Kahit ito, labas na sa poverty threshold mismo ng gobyerno. Paano ka mabubuhay sa ganitong kararampot na sweldo?” he asked.
