Kilusang Mayo Uno (KMU) strongly supports House Bill 2599 or the National Minimum Wage Bill, which was filed this morning by ACT Teachers Partylist Rep. Antonio Tinio and KABATAAN Partylist Rep. Renee Co of the Makabayan Coalition.
The Regional Wage Boards were created under the Wage Rationalization Act – a neoliberal policy that dismantled the national minimum wage. These Regional Wage Boards have served to further depress wages and weaken the unity of Filipino workers. They have slowed down wage increases and widened the wage gap between regions.
Under this setup, the average minimum wage across the country is stuck at ₱417, which is barely over one-third of the estimated ₱1200 living wage needed by a family of five. The average gap between the minimum wage and the living wage nationwide stands at ₱783.
Over 36 years, the total wage increase in the National Capital Region (NCR) has amounted to only ₱606 across 26 wage orders. The real value of these increases has been continually eroded by rising prices of basic goods and regressive taxes.
Wages are even lower in other regions. The lowest minimum wage is in BARMM, at just ₱361, compared to the estimated living wage of ₱2039 in the region.
Wage setting is now even more fragmented. In CALABARZON, wages are determined based on municipality status, province, and other criteria, in addition to dividing between agricultural and non-agricultural sectors. Wage increases are also implemented in “tranches” (installments), sometimes amounting to only ₱10 per tranche – as seen in SOCCSKSARGEN, where the increase was split into four tranches.
The filing of House Bill 2599 is a step toward ending this rotten system. It must advance together with the passage of House Bill 202 or the Living Wage Act, to achieve equal and living minimum wages for all workers across the Philippines.
However, these laws will not move forward without a strong collective push. They must be met with a unified voice and mass action from workers nationwide. Under the RWBs, workers have been pitted against each other and fragmented – but we must march with a common goal: a living wage for all! ₱1200 nationwide!