Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE RESOLUTION No. 1238

Introduced by Reps. TEDDY A. CASIÑO and NERI JAVIER

COLMENARES

RESOLUTION
DIRECTING THE COMMITTEE ON LABOR AND EMPLOYMENT TO
CONDUCT AN INVESTIGATION, IN AID OF LEGISLATION, ON THE
IMPLEMENTATION OF REPUBLIC ACT 6727 OR WAGE
RATIONALIZATION ACT IN VIEW OF THE INHUMANELY LOW WAGE
RATES BEING IMPOSED BY THE REGIONAL TRIPARTITE WAGES AND
PRODUCTIVITY BOARDS

WHEREAS, under the 1987 Philippine Constitution, workers “shall be

entitled to security of tenure, humane conditions of work, and a living wage.”
Similarly, it states that, “The State shall defend…The right of the family to a
family living wage and income;”

WHEREAS, the current daily minimum wage rates of non-agriculture

workers at P204 to P404 and agriculture workers at P190 to P367 are way
below and not even half of the pegged family living wage of P957 (IBON
Foundation, June 2010). From 2001 to the present, the disparity between the
minimum wage and the living wage in the National Capital Region has
doubled from P257 to P553;

WHEREAS, real wages have barely moved and have in fact fallen for some
regions and industries. In NCR, the real value of the minimum wage is at the
same level as that of wages in 1990 which is P239. In Region V, which has
the biggest share (10.5%) of poor Filipinos, the real wage has declined by
almost a third from P212.92 in 1986 to P142.36 this year. The same is true in
Region VII, which has the most share of poor families in the country, with a
real wage rate of P169.54. With the lowest minimum wage of P222, workers
in the Autonomous Region of the Philippines are the biggest victims with a
real wage of only P132.14;
WHEREAS, the Kilusang Mayo Uno labor center has pointed out that for the
last 20 years, the Regional Wage Boards have not approved any wage hike
higher than P26 – a clear proof of their inability to give a significant wage
hike which workers demand as an immediate relief from hunger, poverty and
suffering. It adds that: “The RWBs were created based on the premise that
the there are different cost of living in various regions, and that the cost of
living in the country’s regions are generally lower than that in Metro Manila.
This premise is highly erroneous, and only finds justification in capitalists’
efforts to reduce labor cost at all costs. The Filipino workers and people
share the same amount of poverty and of suffering from high prices.”

WHEREAS, the Regional Tripartite Wages and Productivity Boards, which are
designated to determine and fix minimum wages, have apparently failed to
comply with the Philippine Constitution and the very law that created them,
Republic Act No. 6727 or the “Wage Rationalization Act,” by failing to
“ensure a decent standard of living for the workers and their families; to
guarantee the rights of labor to its just share in the fruits of production” and
to consider “equitable distribution of income and wealth along the
imperatives of economic and social development.” Based on the National
Statistics Office Family Income and Expenditure Survey of 2009, the share of
50% of the poorest families in the Total Family Income of the country has
actually decreased from 20.3% in 1985 to 19.8% in 2009;

WHEREAS, based on the Bureau of Labor and Employment Statistics, while

labor productivity increases, wages stagnate. For example, in the
manufacturing industry, an average worker created P566,139 worth of work
in 2008, but his annual wage is only P83,393 or 14.7% of the value of work
created. In 2004, the rate was at least 23.14% or P68,935 of P297,899. While
the industry experienced enormous growth, workers were left unrewarded;

WHEREAS, the low regional wage rates have not uplifted the lives of Filipino
workers nor have ensured them a decent standard of living. With the
simultaneous price hikes during the past months, Filipinos are further
burdened into trying to make ends meet. It is no surprise that hunger
incidence and poverty increased, with one out of five families experiencing
involuntary hunger in the past three months and 51% of families considering
themselves poor, based on the Social Weather Stations survey of March
2011;

WHEREAS, there is an urgent need to analyze and evaluate the prescribed

formulation of the minimum wage as part of government's responsibility to
promote and protect workers' interest by ensuring their right to a living
wage, among others;

NOW THEREFORE BE IT RESOLVED, that the Committee on Labor and

Employment conduct an investigation, in aid of legislation, on the
implementation of Republic Act 6727 or Wage Rationalization Act in view of
the inhumanely low wage rates being imposed by the Regional Tripartite
Wages and Productivity Boards.

Adopted,

TEDDY A. CASIÑO NERI JAVIER COLMENARES

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