The Political Economy of the Philippine Wage System

Abstract

This research studies the current wage system in the Philippines as compared to the concrete living conditions of the Filipino workers. The topic is timely and important in this period of monopoly capitalism where the chronic crisis brought by the existing system of production along with the relations of production narrows the resources and the gains of the economy to the few ruling elites while the vast majority is slowly drawn to the working class. Such conditions call for inquiry if indeed the system that creates wage earners can secure a decent and fulfilling life for the workers. The conditions of workers are taken from 100 respondents in 2 manufacturing firms within Metro Manila. The study showed that even with the highest minimum wage in the country (P404.00 in NCR) workers are still unable to cope with the daily cost of living. The study also included the suppression of workers' rights such as the implementation of flexible labor arrangements and contractualization. The researcher recommends that wage determination be at the national level instead of the current regional level of wage setting so that workers can be more united in calling for just wages and also help agricultural workers to have better purchasing power considering that genuine land reform is not yet achieved. The research show that it is in the best interest of the workers that the minimum wage should be based on the daily cost of living (P917.00 in 2010) as such amount only reflects the needs of any Filipino given the changes in prices of basic goods and services necessary for the worker and his family.