under construction sign

Worker productivity goes to profits, not wages

October 26, 2018

by IBON Media

“A large wage hike is also justified by growing worker productivity. Between 2009 and 2017, labor productivity in NCR grew by 35% from Php456,059 per worker to Php614,297. However, that same period, the real value of the mandated minimum wage only increased by 11% and of ADBP by 16%, both measured in real terms at constant 2012 prices. This implies that a large part of productivity gains go to employers as profits rather than to workers as higher wages.

It is more urgent than ever in these times of economic crisis for the government to ensure the poorest working class Filipinos do not suffer needlessly and for those with the capacity to adjust, such as enterprises and the wealthy, to contribute to a more equitable economy.” — From https://www.ibon.org/2018/10/ibon-php238-ncr-wage-hike-doable-without-worsening-inflation/