Saturday, April 23, 2011


I would love to see our labor code amended, to provide a better balance between labor and capital and to foster growth for our small and medium businesses.

I believe it follows that if we have enough businesses and industries which are developed, then the market for our labor force will automatically determine what is right for our workers. Rather than the current inflationary policy of our government's labor laws.

Imagine: Due to surging oil prices minimum wages were increased. However, it should be noted that surging oil prices may be temporary only and may be due to speculation, which nevertheless leads to an abnormally high inflation for a certain period.

If the minimum wages were raised for that period, it would mean higher costs for our producers/manufacturers, retailers or our businesses in general, which would then mean higher costs of basic necessities for our national consumers and that even if oil prices or food prices were to significantly go down, it cannot be denied that labor costs would continue to stay at a higher rate based on higher prices.

Although, this would entail more spending power for our consumers, this would in fact prevent the overall purchasing power of our peso from increasing as the prices of basic necessities are barred from further decreasing due to the limit set by our minimum wage.

Now, it is equally troublesome to have fluctuating minimum wages which some companies would use to their own advantage, the better solution would be to provide for new minimum wages but to prevent the diminution of the old minimum wages which were already set in place.

This is not the only observation I have had with this law, however, there are still some other issues which I hope somebody else could point out to me = )

What do you guys think?


  1. It takes the amendment of the Cory Constitution for any long-term change to happen with the state of the Filipino wage as far as those who are earning the least are concerned. If anything, what needs to be dealt with the soonest is the amendment of the law on regional rate. Former president Arroyo already put in place the development of transportation of goods in the Visayas and Mindanao regions which directly affects pricing in Metro Manila and the way of living in the provinces. The less cost for transportation of goods, the more affordable the goods are, the more surge of businesses in the provinces is expected. Unfortunately, a call center agent in the province still earns the minimum regional rate of 10k today compared to another agent in Manila who earns at 15k minimum when both eat the same Jollibee value meal at P50+.

  2. you already! :P

    naniniwala ako na ang gobyerno ng Plipinas ay madaling bumigay sa pressure. in other words, madaling diktahan. dapat may independent thinking ang gobyerno natin dahil sila *dapat* ang mas nakakaalam ng ikabubuti ng lahat niyang mamamayan.

  3. I think, to a certain extent, the Philippine government subscribes to the laissez fair economic paradigm. Yes, it may be able to legislate certain labor policies that may influence the labor affairs (albeit not that significantly), but at the end of the day, its adopted stance of the free market enterprise makes it virtually detached from the market forces that determine the demands of labor and what-not.

    And given that the Philippine government is not that popular to industrialists and business owners in general, i think any attempt at legislating labor practices will not be that well-received by that particular sector.

    uhm, friend, even when you've come back, it still seems like you're still deeply immersed in work. HAHAHA.

    good to read you again though. :)

  4. kahit anong pagbabago pa ang gawin ng batas
    walang kwenta kung hindi din naman susundin ng mga employers

    happy eater, wait!

  5. Seryoso much ang topic!!! I know nothing about it nyahaha

  6. Wow!! This is new to me, a very serious post from you.. Actually I don't know much about labor codes but I really think it should be amended and reviewed, not only the labor code but most of our laws..

    As to the provincial wage price, maybe it should be done on a regional level. But prices really are different from different areas, this also goes for other countries as well..


what do you think?