By: Gil Angelo B. Manalili
“Personal experiences had made me aware that without the opportunities for employment that a booming economy can provide to those who are willing to work, it is an ordeal to obtain even a miserable job in our underdeveloped economy.”
– Diosdado Macapagal (A stone for the edifice: Memoirs of a President, 1968)
One way to earn money for daily needs since Spanish colonization until presently, is being employed by a company or organization. Working hours and wages may vary with the job position and sometimes, payment is even by commission. But for most, the minimum wage is a big help for individuals and their families to survive daily grind.
During the Spanish period, the practice of polo y servicio (forced labor) was employed with Filipino males from ages 16-60 and was in effect for over 250 years. Some reports note that there are also Chinese mestizos that were part of the polistas (laborers).[1] The polistas were responsible in constructing galleons, church repairs, roads and bridges for the benefit of the whole community. This practice sorely affected the agricultural sector because the lack of male farmers and crop growers in the work force cultivating farmlands resulted in low harvests and in turn, caused hunger and even death. Numerous rebellions were caused by this cruel practice but were put down by the strong military and firepower of the Spaniards.
With the Philippines under the new American colonizers, President Quezon aided laborers through the Commonwealth Act no. 103, which was passed in 1935. It empowered the Court of Industrial Relations “to investigate, upon the direction of the President of the Philippines, the condition of the workers in a given industry or locality, and to establish a minimum wage for such industry or locality to be effective upon the approval of the President”.[2] After a year, Commonwealth Act no. 211 was passed on 21 November 1936 and stated that a minimum daily wage of one peso (Php1) will be received by all laborers employed by corporations. Also included in the law were public workers in provinces and municipalities, but they may be paid lower wages depending on their financial conditions.[3] However, the Court of Industrial Relations was disallowed to establish a minimum wage for the sugar, cigar and cigarette industry, and other private industrial and commercial enterprises in Manila.
Diosdado Macapagal’s personal experiences as a worker and his awareness of the hardships of farmers and poorest paid workers in his hometown, prompted him to author the Minimum Wage Law when he was the Congressman of the 1st District of Pampanga from 1949-1957. During the 1950’s, many house bills and senate bills had been proposed to regulate the minimum wage in the country. These bills have different wage rates ranging from two pesos (Php2) to six pesos (Php6). These differences led to the creation of a Special Committee on Labor to study and define the right amount for the minimum wage.[4]
The US Department of Labor enumerated some factors on how to determine the Minimum Wage Law. The wage should satisfy the following requirements: sufficient nourishing food for the health of the family, especially the children; shelter, rent and regular household equipment; clothing; and a surplus over the above expenditures for transportation fares, insurances and healthcare, contributions to beneficial organizations and principal amusements.[5]
After a series of meetings and consultations, the Committee agreed on a proposed wage of three pesos (Php3) for agricultural workers and five pesos (Php5) for industrial workers. Still, many thought that the figure for agriculture was too high, and with the lack of available statistics, the committee unanimously decreased the minimum wage.[6]
Republic Act no. 602 or the Minimum Wage Law was passed in 1951; its enactment was closely related to the postwar economic development of the Philippines. It largely resulted from the American economic survey known as the Bell Mission. The Bell Mission report reads in part: “Both industry and agriculture have been very prosperous in the Philippines since the end of the war, but little of this prosperity has seeped through the working force”. Therefore, it went to recommend: “The first step in ameliorating the economic conditions of workers is the prompt enactment of the minimum wage legislation. The minimum wage in agriculture should be at least two (Php2) pesos a day, and probably two pesos and fifty cents (Php2.50) could be justified under the present economic conditions. As the purpose of the minimum wage law is to improve the living conditions of low-paid workers, this legislation should not become the occasion for reducing the supplements to income which agricultural workers now have. In non-agricultural employment, the minimum wage should be far higher than in agriculture because of the different conditions under which workers must live; and for this reason, it should be within the economic capacity of employers as indicated by the wage rates now paid by efficient employers.”[7]
The law adopted the proposed rates of the Bell Mission: setting the minimum wage of agriculture workers at two pesos and fifty centavos (Php2.50) rate per day of work, and in non-agriculture employment, four (Php4) pesos per day.[8] Republic Act no. 602 not only provided for higher statutory rate, but it also had a more extensive coverage. It covered not only agricultural and non-agricultural enterprises but also private firms and government. The law, however, applied to employees in the government service beginning on 1 July 1952.
Diosdado Macapagal continued to support the laborers in the country as he introduced the Five-Year integrated Socio-Economic Program when he became the President of the Philippines in 1961. One of the goals of the program is “to create a condition that will provide more income to our people, income for those who have none and more income for those whose earnings are inadequate for their elemental needs.”[9] President Macapagal also admitted that creating permanent job opportunities will take time because it will largely depend on the progress of the country’s economy.
The Minimum Wage Law continues to be revised to cope with the changes of daily living, the value of the peso, and the economy. At present, the minimum wage in Metro Manila ranges from five hundred (Php500) to five hundred thirty-seven (Php537) pesos per day, and from three hundred seventeen (Php317) to four hundred (Php400) pesos for the provincial rate.[10] The amount now is a far cry from the 1950s but the same travails pursue the common Filipino, though with the minimum wage to think of at the end of the day, his worries are a bit lighter knowing that he can provide, at least, for himself. And we can thank President Macapagal for that.
References
Eggan, Fred. The Philippines and the Bell Report vol. 10 no. 1.
Society for Applied Anthropology, 1951.
Gwekoh, Sol H. The Illustrated Triumph over Poverty. 1965
Macapagal, Diosdado P. A Stone for the Edifice: Memoirs of a President.
Mac Publishing House, Quezon City, 1968.
Macapagal, Diosdado P. Five-Year integrated Socio-Economic Program for the Philippines. 1962
Macapagal, Diosdado P. The Lawyers Journal vol. XVI. 1951
Quitoriano, Aurelio. A Bold Philippine Program: Unemployment – The Problem and Its Solution.
Manila, 1953.
Tallow, Adamin A. The Minimum Wage Law: An Appraisal.
Graduate School of Law, University of Sto. Tomas, 1956
Online references
https://philnews.ph/2020/11/04/what-is-polo-y-servicio-about-the-spanish-term-and-practice/
https://www.chanrobles.com/Commonwealth%20Act%20No.%20103,%20October%2029,%
https://lawphil.net/statutes/repacts/ra1951/ra_602_1951.html
[1] https://philnews.ph/2020/11/04/what-is-polo-y-servicio-about-the-spanish-term-and-practice/
[2] https://www.chanrobles.com/Commonwealth%20Act%20No.%20103,%20October%2029,%201936.pdf
[3] The Minimum Wage Law: An Appraisal, Adamin A. Tallow p. 5
[4] Ibid, p. 9
[5] ibid, p. 4
[6] Ibid, p. 11-14
[7] ibid, p. 6
[8] The Illustrated Triumph over Poverty, Sol H. Gwekoh, 1965
[9] Five-Year integrated Socio-Economic Program for the Philippines, Diosdado Macapagal, p. 2