By JOCELYN MONTEMAYOR and GERARD NAVAL
Government agencies are pushing for a four-day work week to lessen fuel consumption, and a P24-billion, three-month subsidy for minimum wage earners as a relief to workers.
On Tuesday night, President Duterte approved the proposal of the Department of Finance to provide a monthly subsidy of P200 per household of poor families to cushion the impact of the rising costs of fuel, which would entail a budget of P33 billion.
Communications Secretary Martin Andanar at the Talk to the People yesterday said the implementation of the P200 per month or P2,400 per year subsidy, to be given through unconditional cash transfers, would have to follow the guidelines to be issued by the Department of Budget and Management.
Andanar said the distribution of the subsidy will be handled by either the Department of Social Welfare and Development or the local government units. The aid will benefit 50 percent of the population or around 12 million poor households and will need about P33.1 billion in budget.
DOLE assistant secretary Dominique Tutay said the proposed P24- billion subsidy for minimum wage earners would run from April to June.
“With the current wages now extremely inadequate particularly for the minimum wage earners and the government’s economic recovery in full swing, subsidies may be extended to vulnerable workers, particularly those most severely affected by fuel prices and its domino effect on prices in food and basic goods and services,” Tutay said.
DOLE Undersecretary Benjo Benavidez in a separate briefing said the proposed wage subsidy I meant provide additional wages to workers and not to help employers pay their employees’ salaries.
“Weare not giving wage subsidy to help employers comply with the minimum wage law.
The wage subsidy is an additional income to help workers,” said Benavidez.
“This means that even if there is no wage subsidy, the minimum wages must be provided,” he added.
He said the wage subsidy is necessary considering that the last wage adjustment came years ago.
“This is really needed by minimum wage earners. Based on absolute data, the purchasing power of the minimum wage rate has decreased,” he explained.
Benavidez added the wage subsidy would come in a handy while workers await for the ongoing review of all minimum wage rates.
“While the petitions for wage increase are being processed, this wage subsidy will be a big help to workers, especially minimum wage earners,” said Benavidez.
Also at the Talk to the People, Socio-economic Planning Secretary Karl Chua said raising fares and wages will further exacerbate inflation which will be more of a burden to the poor rather than the general populace.
“Higher inflation rate is a tax on all and leads to higher interest rate,” Chua said.
Chua said raising fare by P1.25, it will raise infation by 0.4 percent. Given that the Bangko Sentral ng Pilipinas (BSP) is projecting a 3.7 percent inflation, it will rise to 4.1 percent, he said, translating to an additional P4 to a for an old spending of P100.
A public transport group though is lobbying for a P6 increase in fares to P15 from the current P9 in the first four kilometers.
Chua said while jeepney and bus drivers may benefit from the increase in fare, the spiraling inflation will eat up even on the consumption of people who do not take jeepneys and buses.
Chua said a 6-percent increase in wage in the National Capital Region (NCR), now at P500 to P537, would translate to a 1-percentage point increase in inflation.
This will also negatively affect informal workers, those who are not earning even the minimum wage, and even those whose wages are paid piecemeal.
A labor group is lobbying to raise minimum wage by P470 in NCR.
Chua said taking into consideration the impact of the two proposals will increase inflation in the Philippines by 1.4 percentage points to 5.1 percent.
Chua had recommended the four-day work week while Energy Secretary Alfonso Cusi suggested to sustain the work-from-home arrangement, both meant to limit use of transportation and ease burden of workers.
In reaction, Benavidez reminded business establishments that the four-day workweek arrangement would have to be consensual between employees and employers.
“The implementation of a compressed work week is based on voluntary agreement of employers and employees.There must be a consensus agreement. If one party refuses, it cannot be forced,”
Benavidez said, adding this scheme is not a novel idea as it has been implemented previously.
“In the four-day workweek proposal, we won’t need a new law or department order. We have issued a labor advisory on flexible work arrangement. The four-day workweek is form of flexible work arrangement,” said Benavidez.
Asked if he believes the working arrangement will help workers and employers cope with the soaring prices, he said other modes may also be considered.
“That is a decision they have to make. Will they be able to save through it? Or will it be better if they will adopt other flexible work arrangements? Or is it better to retain telecommuting work arrangements? It is up to them in the workplaces,” said Benavidez.
Meanwhile, Tutay said DOLE is also asking for the re-appointment of stakeholder representatives in the National Wage and Productivity Commission amid calls for a wage hike.
Meanwhile, a number of senators yesterday said the P200 monthly subsidy to poor families is not enough to cope with the impact of the oil price increase.
Presidential candidate Sen. Panfilo Lacson said the suspension of collection of excise taxes on oil products is a better option as it will reduce fuel prices by P10 per liter.
He said the P200 monthly subsidy is unrealistic to mitigate the adverse effects of the rising fuel prices.
Sen. Grace Poe said the subsidy is a “pittance” since P200 a month will translate to only P6.66 a day which she said “can’t even get one a jeepney ride to the minimum distance.”
“Our people deserve more amid the battering of the high cost of living, joblessness and continuing impact of the pandemic. The government must not scrimp on aid to help our people feed their families, live decently, return to work safely, and spur economic activity,” Poe said. With Raymond Africa
