A flashback to September 2009, Typhoon Ondoy made contact with the Philippines and was considered to be the most devastating typhoon to have hit the country.
Internationally called “Ketsana”, Ondoy is recorded to have been the cause of the worst case of flooding in the Philippines, bringing at least 106 people to the list of dead and missing.
Today, again on September, felt like a sequel to the tragedy of Ondoy as Manila is greeted by what seems to be the strongest typhoon of the year 2014, Typhoon Mario.
By: Jessamine Elise Sagcal
A study, entitled “the effects of minimum wage on the Philippine economy,” was recently published by a PIDS (Philippine institute of development studies) researcher on the PIDS website. The study gives reason to the country’s economic state and minimum wage’s effect on the employees.
Leonardo A Lanzona Jr., the researcher of the study and Atenean professor, took account the Philippine Labor Code with regards to minimum wage or the Wage Rationalization Act (Republic Act 6727) formed during the Marcos era. According to him, the code showed bias and was in favor of labor and against management which became the reason for numerous effects, such as the increase in unemployment.
By Danielle Ann Gabriel
Minimum wage is confirmed to have a major role in the issue of unemployment in the country, according to a study done by the Philippine Institute for Development Studies (PIDS) last August.
The 8-page research written by Leonardo Lanzona Jr. titled “Effects of Minimum Wage on the Philippine Economy” discussed how the increase in minimum wage amount could translate to lower company benefits and security that would, in turn, result to blown-up proportions of unemployment cases.
“Workers carry part of the burden of higher minimum wages in the form of benefits and reduced worker security. Both of these effects may result in greater incidence of unemployment or lower participation in the formal sector,” Lanzona said.
The study also indicated that small-scale firms struggle more when it comes to hiring and keeping their employees. These small companies usually resort to offering job hunters higher pay as opposed to large-scale enterprises technique of promising promotions, Lanzona said.
He added that workers will be more inclined to work for smaller firms for easy money but will then shift to larger firms once minimum wages rise up, causing small firms to close.
“Poorer and less experienced workers who are in need of immediate cash will probably accept the offer of smaller firms, instead of taking a chance with larger firms,” Lanzona said. “However, once the minimum wages increase, more workers would move to the larger firms because smaller firms cannot further raise their offered wages.”
Citing some loop holes in the country’s labor laws, the PIDS study concluded the Labor Code should be reworked to have areas like production efficiency and social protection accessible to the employer and employee.