Media reports death of wage hike bill

CHEERS TO Michelle Abad of Rappler and Kurt Dela Peña of Inquirer.net for their in-depth reports that traced the legislative timeline of the wage hike bill. 

The Senate passed Senate Bill No. 2534, granting a PHP 100 daily wage increase in February 2024. On the other hand, the House of Representatives approved House Bill No. 11376, the PHP 200 counterpart, on June 4.

On June 11, both chambers failed to push forward a compromise version of the two bills, and neither the PHP 100 nor the PHP 200 increase was implemented. Unfortunately, this marked the death of the wage hike bill. 

Abad’s in-depth report was released on June 14, after both versions failed to pass legislation. It traced the legislative developments, explained what happened in between, and outlined why the bill died in the 19th Congress.

Dela Peña detailed the developments of the bill as well. He also focused on the findings of Ibon Foundation in his report released on June 19. Ibon Foundation stressed the need for a PHP 1,217 living wage, which would improve their families’ quality of living. 

Wage hike efforts

Labor groups have long lobbied for wage increases. Both Abad and Dela Peña focused on the history of wage legislation, citing that this was the closest an across-the-board wage increase has come to being legislated since 1989 which was nearly four decades ago.

Abad’s report emphasized that its passage was a difficult feat because Labor Secretary Bienvenido Laguesma and President Ferdinand Marcos Jr. “were never on [the workers’] side.”

For his part, Dela Peña pointed out that President Marcos Jr. declined to certify the bills as urgent and only instructed the Regional Tripartite Wages and Productivity Boards (RTWPB) to initiate a review. Only PHP 35 to PHP 40 increases were enacted by the regional boards in Metro Manila, the Cordillera Administrative Region, and Mimaropa, among others.

Economic impact of the wage increase

The economic impact of the bill was also discussed in Abad’s report, which cited a position paper by President Marcos Jr.’s economic team opposing the blanket wage increase. His economic managers contended that around 105,000 to 300,000 Filipinos would lose their jobs if the policy were passed and that it would lead to higher inflation.

Abad countered these points by citing a recent study conducted by the University of the Philippines (UP) School of Labor and Industrial Relations, which showed the wage increase had an insignificant impact on both employment and inflation. The study concluded that both wage recovery for workers and low unemployment issues can be addressed with the right policies.

Dela Peña’s report emphasized Ibon Foundation’s argument that wage increases also contribute to the growth of the informal economy because this is where minimum wage earners typically spend their income. This, in turn, is a strong driver of economic growth.

Media must sustain the coverage of fundamental issues that affect the lives of common Filipinos, especially with the unpredictability of inflation and  the widening wage inequality.  In-depth reporting not only informs the public but also holds lawmakers accountable. Media has a responsibility to ensure that the struggles of ordinary citizens remain part of the national conversation.