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Bu-lat-lat (boo-lat-lat) verb: to
search, probe, investigate, inquire; to unearth facts
Vol. VI, No. 31 Sept.
10 - 16, 2006 Quezon City, Philippines |
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Iskandalo
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Copyright 2004 Bulatlat
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ANALYSIS
Growth Outlook Glosses
over Low Wages
More than the reported
5.5 percent growth in the local output, statistics on wages are more
reflective of the economic situation. It would do well for government to
address the fundamental problems besetting the poor instead of spreading
misguided optimism just to win over the hearts and minds of the Filipino
people.
By DANILO ARAÑA ARAO
Bulatlat
The publicity about
the gross domestic product (GDP) or local output growth by 5.5 percent in
the second quarter of 2006 may give the Macapagal-Arroyo propaganda
points. But it means nothing to the poor especially the workers.
Press Secretary
Ignacio Bunye said that along with the steady GDP growth, “The rally of
our money and stock markets,…improved fiscal footing and the climbing to
an all-time high of our Gross International Reserves as well as direct
investments will help push our nation forward towards our goal of
emplacing the Philippine among the ranks of the first world within the
next two decades.”
Even Ifzal Ali, chief
economist of the Asian Development Bank (ADB), said that the year "2006
has been a very good year" for the Philippines, adding that the country’s
economic growth this year “would hit 5.4 percent, higher than the previous
projection of 5.0 percent.”
Such optimism may be
considered misplaced and even callous if one were to analyze the plight of
the workers. Despite the wage increases granted in July and August for all
17 regions in the country, there is no qualitative change in their wages
since workers still cannot provide for the needs of their families.
Data from the
Department of Labor and Employment (DoLE) show that the daily minimum
wages currently range from P200 or $3.96 (Autonomous Region in Muslim
Mindanao or ARMM) to P350 or $6.93 (National Capital Region). These,
however, are still too little to meet the food and non-food needs of a
family of six.
As of July 2006, the
daily family living wage ranges from P472 or $9.35 (Eastern Visayas) to
P993 or $19.66 (ARMM). In the case of NCR-based workers, the daily minimum
wage of P350 ($6.93) is still not enough since the family income needed
amounts to P756 ($14.97). This translates to a wage disparity of P10,556
($209.03) monthly.
Workers in the ARMM
are in the worst situation since they are given the lowest daily minimum
wage of P200 ($3.96), but they have to contend with the highest family
living wage amounting to P993 ($19.66). The gross monthly income of ARMM-based
workers therefore is short by P20,618 ($408.28).
More than the
reported 5.5 percent growth in the local output statistics, wages are more
reflective of the economic situation. It would do well for government to
address the fundamental problems besetting the poor instead of spreading
misguided optimism just to win over the hearts and minds of the Filipino
people. Bulatlat
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Nominal Daily Minimum Wage Rates and
Family Living Wage
as of August 2006 (non-agriculture) |
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On a Daily Basis |
On a Monthly
Basis a/ |
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Nominal
Value |
Family
Living
Wage |
Disparity |
Nominal
Value |
Family
Living
Wage |
Disparity |
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Philippines |
290.73
|
709.47
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(418.73) |
7,559.09
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18,446.13
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(10,887.04) |
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NCR |
350.00
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756.00
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(406.00) |
9,100.00
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19,656.00
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(10,556.00) |
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Areas outside NCR |
231.47
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662.93
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(431.46) |
6,018.19
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17,236.27
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(11,218.08) |
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CAR |
235.00
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731.00
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(496.00) |
6,110.00
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19,006.00
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(12,896.00) |
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Region I (Ilocos) |
225.00
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706.00
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(481.00) |
5,850.00
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18,356.00
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(12,506.00) |
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Region II (Cagayan
Valley) |
218.00
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624.00
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(406.00) |
5,668.00
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16,224.00
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(10,556.00) |
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Region III
(Central Luzon) |
278.00
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645.00
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(367.00) |
7,228.00
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16,770.00
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(9,542.00) |
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Region IV-A (Calabarzon) |
287.00
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663.00
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(376.00) |
7,462.00
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17,238.00
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(9,776.00) |
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Region IV-B (Mimaropa) |
230.00
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663.00
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(433.00) |
5,980.00
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17,238.00
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(11,258.00) |
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Region V (Bicol) |
220.00
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632.00
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(412.00) |
5,720.00
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16,432.00
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(10,712.00) |
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Region VI
(Western Visayas) |
222.00
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558.00
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(336.00) |
5,772.00
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14,508.00
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(8,736.00) |
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Region VII
(Central Visayas) |
241.00
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731.00
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(490.00) |
6,266.00
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19,006.00
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(12,740.00) |
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Region VIII
(Eastern Visayas) |
220.00
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472.00
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(252.00) |
5,720.00
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12,272.00
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(6,552.00) |
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Region IX (Zamboanga
Peninsula) |
215.00
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661.00
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(446.00) |
5,590.00
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17,186.00
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(11,596.00) |
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Region X
(Northern Mindanao) |
234.00
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632.00
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(398.00) |
6,084.00
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16,432.00
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(10,348.00) |
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Region XI (Davao) |
240.00
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627.00
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(387.00) |
6,240.00
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16,302.00
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(10,062.00) |
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Region XII (SOCCSKSARGEN) |
224.50
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606.00
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(381.50) |
5,837.00
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15,756.00
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(9,919.00) |
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Region XIII (Caraga) |
214.00
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n.a. |
n.a. |
5,564.00
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n.a. |
n.a. |
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ARMM |
200.00
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993.00
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(793.00) |
5,200.00
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25,818.00
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(20,618.00) |
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Author's
computation based on DOLE data |
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Minimum wage
rates are highest nominal wage for August 2006; Family Living Wage
as of July 2006 |
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a/ Monthly
Minimum Wage and Family Living Wage assumes 26 working days per
month |
Note: Peso-dollar
conversion is based on an exchange rate of P50.50 per US dollar.
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