Look After Worker’s Welfare or Hurt the Poor?

From Agnes P Alambra @ Feb 26, 4:17 pm (56 days ago) Look after workers’ welfare or hurt the poor?
According to the latest news by Hannah Torregoza, Senator Francis “Chiz” Escudero urged the Department of Labor
and Employment (DOLE) to support the measure seeking to increase the daily minimum wage of employees in the
private sector by P100 instead of recoiling at the idea. I came upon this post on February 19, 2024, at 4:58 PM, on
Senator Migz Zubiri's official Facebook page. It announced the good news that Senate Bill No. 2534, the P100 Daily
Minimum Wage Increase Act of 2024, had passed the Senate. This is an important step toward the passage of the
law, but there is still work to be done, according to the senator. Furthermore, to Hannah’s news, Senator Jose
Escudero of the Philippines has requested that Senate Bill 2534, which attempts to enhance the living conditions of
the labor force, be supported by the Department of Labor and Employment (DOLE). The DOLE was criticized by
Escudero for opposing the bill, claiming that safeguarding the welfare of employees is not their main responsibility.
He endorsed the proposal, saying that Filipino laborers should be paid more because they have suffered enough. On
its third and final reading, the bill was adopted by the Senate. Additionally, Escudero is hoping that the House of
Representatives would approve a version of the proposed law that would finally allow minimum wage adjustment
for those who work in the private sector. He pleaded for discussion and, if needed, voting to bring the law back to
life. Zubiri appealed to the House of Representatives to act on the wage increase bill and heed the call of the labor
sector for a salary hike. Meanwhile, Senate President Pro Tempore Loren Legarda clarified that microenterprises are
exempted from the implementation of the proposed P100 daily minimum wage hike under Republic Act (RA) 9178,
or the "Barangay Micro Business Enterprises" (BMBE) law, and RA 6727, or the "Wage Rationalization Act." Sen.
Jose "Jinggoy" Estrada, chairman of the Senate Committee on Labor and sponsor of SB 2534, said the Senate "is
responsive" to the needs of Filipinos amid rising prices of basic commodities. He said that the last legislated wage
hike was implemented in 1989. "It's been a long time coming. This may be only P100 a day now, but we vow to not
stop here," said Sen. Ramon "Bong" Revilla Jr., co-author of SB 2534. The House Committee on Labor and
Employment has set a meeting for Wednesday (February 28) to discuss the two measures seeking a legislated wage
hike for private sector workers. House Majority Leader Manuel Jose "Mannix" Dalipe said the House leadership was
studying proposals for P150 and P350 in daily minimum wage hikes.
Despite the inkitiative of our senators regarding the P100 Increase Act, what are the consequences? How can we
guarantee that the laws we pass will actually improve the lives of our employees, especially micro, small, and
medium-sized business-faces?

COMMENT ON THE BLOG : Look After Worker’s Welfare or Hurt the Poor?

A big step in the right direction has been taken with the passing of the P100 Daily Minimum Wage Increase
Act of 2024, which would help the Filipino workers who have long faced stagnating pay in the face of growing
living expenses. While the legislation's intentions are praiseworthy, it is crucial to carefully weigh the possible
outcomes and make sure that its implementation improves employees' lives in a noticeable way without placing an
undue burden on businesses, especially micro, small, and medium-sized enterprises (MSMEs).
Increased operational costs for firms, especially MSMEs that have narrow profit margins, might be one
effect of the pay rise. For those who can't afford the extra costs, this might result in difficulties like layoffs,
shortened workweeks, or even firm closures. Furthermore, when companies pass on the higher costs to customers,
there is a chance that inflation would grow, which might reduce the buying power of wage workers, especially those
in lower income levels.
Policymakers must use a comprehensive strategy that takes into account the demands of both companies
and employees in order to minimize negative effects and guarantee that the legislation enhances workers' welfare.
This might entail putting policies in place to assist MSMEs, such tax breaks, subsidies, or low-interest loans, to help
them adjust to rising labor expenses. Initiatives to boost corporate efficiency and competitiveness can also serve as a
buffer against the effects of wage rises.
Strong monitoring and enforcement procedures are also necessary to guarantee adherence to the new pay
laws and stop labor exploitation. To handle concerns about pay infractions, this entails bolstering labor inspection
systems, giving labor unions and workers' organizations more authority, and setting up grievance procedures.
 I therefore conclude that the P100 Daily Minimum Wage Increase Act's passing is a step in the right
direction toward improving workers' welfare, but its effective execution calls for a well-rounded strategy that takes
into account the interests of both companies and employees. Policymakers can ensure that the legislation improves
the lives of Filipino workers without jeopardizing the viability of businesses, especially micro, small, and medium-
sized enterprises (MSMEs), which are the backbone of the economy. To do this, they should address the concerns
raised by the business community and put supportive measures in place.

Referrences: Aaronson, D. (2001), “Price Pass-Through and the Minimum Wage,“ Review of Economics and
Statistics, Volume 83, Issue 1, February, pp. 158-169.