Cai U. Ordinario / Reporter
WHILE minimum wage
helps protect low-skilled workers from abusive employers, it leaves most
of the country’s technical personnel or skilled workers vulnerable to
seeking better opportunities abroad, according to the National Wages and
Productivity Commission (NWPC).
At
the Communication and News Exchange Forum on Thursday, NWPC Executive
Director Ciriaco Lagunzad III said having high minimum wage is one of
the explanations to the “missing middle” pertaining to the technical and
skilled personnel.
Lagunzad said
currently, minimum wage is already more than 90 percent of the average
wage in the country despite the recommended level by the International
Labor Organization which is only 70 percent.
“Ngayon
halos 90 plus of the average wage is minimum wage. There are times
[it)] will exceed your average and that’s very bad [because] it disrupts
the whole economy, it doesn’t value skilled workers, [and] it will
crowd out collective bargaining. Kaya wala nang unyon kasi umaasa na
lahat sa minimum wage eh,” Lagunzad told reporters.
“Ayaw
na ng mga workers ng increase kasi ’pag tumaas magbabayad [sila] ng
[mataas] tax....Eh di mas mabuti nang minimum na walang tax kesa
increasan mo mas malaki yung tax, ’yung take home pay maliit. These
policies tend to distort labor markets,” he added.
Based
on the Bureau of Labor and Employment Statistics, the country’s average
monthly wage was at P13,565 in 2010. This means, using a six-day work
week, an average worker earns P521.73 per day.
However,
data from the NWPC, if this is going to be applied in a region like the
National Capital Region where the current minimum wage is P426 per day
or an average monthly salary of P11,076, using a six-day work week.
Lagunzad
explained that under this system, many skilled workers are forced to go
abroad as overseas Filipino workers because their salaries are very low
and with minimum-wage earners not being taxed, low-skilled workers
often have bigger take home pays than skilled workers.
“Kinakailangan
lang idisiplina ’yung pag-set ng minimum wage. [Dapat] hindi masyadong
mataas kasi kung mataas, bukod sa hindi ma-afford ng business, ’yung mga
collective bargaining [agreements] maaring mahirapan kasi mas malaki pa
’yung binibigay ng wage board kesa sa collective-bargaining agreement.
Tapos, ’yung [skilled]...hindi na binibigyan ng halaga.... kasi
binibigay naman ng minimum wage ’yung kanilang pangangailangan,”
Lagunzad explained.
Lagunzad explained.
Earlier,
the World Economic Forum (WEF) warned that the Philippines is among the
developing countries that may experience the highest need for
professionals by 2020 and beyond.
The
report titled Global Talent Risk–Seven Responses, done by WEF in
collaboration with the Boston Consulting Group, project that there will
be talent shortages in 25 countries, 13 industries and nine occupational
clusters by 2020 and 2030.
Talent
shortages will be greatest among educated professionals, technicians
and managers. Professionals will also be most in demand in trade,
transport and communications industries in developing nations.
The
13 industries where these shortages will occur by 2020 and beyond are
mining, manufacturing, utilities, construction, trade, hotels,
transportation and communication, financial intermediation, information
technology and business services, public administration and defense,
education, health care, and other services.
Among
developing countries like the Philippines and Malaysia, the highest
demand will be for senior managers in mining and utilities;
professionals in mining, manufacturing, utilities, trade, and
transportation and communication; technicians and associated
professionals in mining, trade, hotels, and transportation and
communication; clerks in mining and trade; and service workers in
manufacturing.
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