by: Gilbert M. Forbes
DepEd Quezon, IV-A CALABARZON
It has been three days since 2011 Labor Day was remembered and still, the clamor of laborers and unionists is across the board salary increase.
Personally at first glance, I am personally amenable with an additional pay for who is not. With a properly planned expenditure, it will certainly be a great boost to our current finances. But it could not be counted and depend on for a long period of time for in a year or two due to inflation which is around five to ten percent.
Economically speaking, salary increases are not a long term solution to our financial or poverty problems. We need to be financially literate and good stewards first. Salary increases just keep the cycle of high inflation. For instance, an additional Php10k across the board increase for public school teachers in DepEd which would of course include its employees would mean an additional budget for around Php60 Billion.
Of course, once an increase is given to a certain government sector, others will follow. It would be financially heavy for the government not only at the national level but most importantly at the local level. It will over-stretched the finances of LGU's particularly the poor ones. And it's impact would be huge that the government would either have to cut back on its expenditures to other essential things.
The increase in salary of employees and workers also mean an increase in the way business is being done in our country thus further losing our competitive advantage in the global market. If not total closure of companies and factories operating in our country, outsourcing and expansion stoppage is employed thus instead of creating or increasing jobs available for the increasing unemployment, it simply don’t happen. And because of inflation, the value of our money just keep on decreasing and so salary increase don’t do any help at the final and complete glance.
At the end of the spectrum, worst hit would be the peasants and the rural folks, the informal sectors of the economy, the under-employed and worst the unemployed, and the marginalized.
At least unemployment's effect is lessen by contractualization making employment availability circular or rotational. Contractualization is a bitter pill for all but it make work available to many and don’t limit it to a few. It isn’t really popular but it will slowly find its graveyard only if demands for workers increase.
On the private sector, higher pay among workers will depend on the demand hence market plays a significant role even in the world of labor. If competition is strong among employers seeking for workers, naturally, salaries being offered increase too. But until, there is shortage of available jobs, and competition among job seekers is very strong and so, the salary low.
Sound economic policy of the government is the only solution but it would always be very unpopular as ever particularly to the labor sector and to the segments of the society benefiting from the current situation. These are no other than sectors of the extreme left who has always on the fore front of raising the issue of salary increase as their populist agenda to downplay government's effort as they continue their so called protracted war of ultimately defeating it at all fronts.
Simple solution to the increasing prices of prime commodities particularly food items is to increase production. Example increasing vegetable production could decrease its price by half. Prices of rice could be maintained if production is increased, hoarding and smuggling curtailed.. Well rice supply and agricultural production would have not been a problem if the government had a clear zoning policy and a political will against land conversion, hoarding, and smuggling.
For decades, real state developers have feasted on land conversion of primary irrigated lands some of which are still very visible today in the provinces of Laguna, along SLEX, and Bulacan and Pampanga along NLEX. LGU's prefer real state for it generates more taxes than agriculture, a misplaced preference and lapsided priority.
Our problem of expensive food to the table is always governed by the law of supply and demand. If there would have been a cheaper food to feed us, at least, the increasing price of oil would not be that great to the public concern. In fact, those who are engage in food production, the farmers are decreasing. Almost nobody now wants to till the land. Something that the education sector, the popular culture, and economic policies should be concerned of.
It is the wish of this blogger that its not only the national government who should work for our people but the local government as well. The problem is, the way LGU personnel work seem to be limited on their airconditioned room particularly those who are suppose to be working in the field e.g., those in-charge of food production.
As long as inefficiency exist and the one working for solution is top-down, this blogger doesn’t think that his dream of having abundantly cheap agricultural produce available to the market like in Thailand would be a reality.
(Mr. Gilbert M. Forbes had his Bachelors Degree and MA in Educational Management (CAR) from the Philippine Normal University. A campus paper adviser and trainer for 13 years. Currently, he is a school principal in one of the central schools in the Division of Quezon.)
DepEd Quezon, IV-A CALABARZON
It has been three days since 2011 Labor Day was remembered and still, the clamor of laborers and unionists is across the board salary increase.
Personally at first glance, I am personally amenable with an additional pay for who is not. With a properly planned expenditure, it will certainly be a great boost to our current finances. But it could not be counted and depend on for a long period of time for in a year or two due to inflation which is around five to ten percent.
Economically speaking, salary increases are not a long term solution to our financial or poverty problems. We need to be financially literate and good stewards first. Salary increases just keep the cycle of high inflation. For instance, an additional Php10k across the board increase for public school teachers in DepEd which would of course include its employees would mean an additional budget for around Php60 Billion.
Of course, once an increase is given to a certain government sector, others will follow. It would be financially heavy for the government not only at the national level but most importantly at the local level. It will over-stretched the finances of LGU's particularly the poor ones. And it's impact would be huge that the government would either have to cut back on its expenditures to other essential things.
The increase in salary of employees and workers also mean an increase in the way business is being done in our country thus further losing our competitive advantage in the global market. If not total closure of companies and factories operating in our country, outsourcing and expansion stoppage is employed thus instead of creating or increasing jobs available for the increasing unemployment, it simply don’t happen. And because of inflation, the value of our money just keep on decreasing and so salary increase don’t do any help at the final and complete glance.
At the end of the spectrum, worst hit would be the peasants and the rural folks, the informal sectors of the economy, the under-employed and worst the unemployed, and the marginalized.
At least unemployment's effect is lessen by contractualization making employment availability circular or rotational. Contractualization is a bitter pill for all but it make work available to many and don’t limit it to a few. It isn’t really popular but it will slowly find its graveyard only if demands for workers increase.
On the private sector, higher pay among workers will depend on the demand hence market plays a significant role even in the world of labor. If competition is strong among employers seeking for workers, naturally, salaries being offered increase too. But until, there is shortage of available jobs, and competition among job seekers is very strong and so, the salary low.
Sound economic policy of the government is the only solution but it would always be very unpopular as ever particularly to the labor sector and to the segments of the society benefiting from the current situation. These are no other than sectors of the extreme left who has always on the fore front of raising the issue of salary increase as their populist agenda to downplay government's effort as they continue their so called protracted war of ultimately defeating it at all fronts.
Simple solution to the increasing prices of prime commodities particularly food items is to increase production. Example increasing vegetable production could decrease its price by half. Prices of rice could be maintained if production is increased, hoarding and smuggling curtailed.. Well rice supply and agricultural production would have not been a problem if the government had a clear zoning policy and a political will against land conversion, hoarding, and smuggling.
For decades, real state developers have feasted on land conversion of primary irrigated lands some of which are still very visible today in the provinces of Laguna, along SLEX, and Bulacan and Pampanga along NLEX. LGU's prefer real state for it generates more taxes than agriculture, a misplaced preference and lapsided priority.
Our problem of expensive food to the table is always governed by the law of supply and demand. If there would have been a cheaper food to feed us, at least, the increasing price of oil would not be that great to the public concern. In fact, those who are engage in food production, the farmers are decreasing. Almost nobody now wants to till the land. Something that the education sector, the popular culture, and economic policies should be concerned of.
It is the wish of this blogger that its not only the national government who should work for our people but the local government as well. The problem is, the way LGU personnel work seem to be limited on their airconditioned room particularly those who are suppose to be working in the field e.g., those in-charge of food production.
As long as inefficiency exist and the one working for solution is top-down, this blogger doesn’t think that his dream of having abundantly cheap agricultural produce available to the market like in Thailand would be a reality.
(Mr. Gilbert M. Forbes had his Bachelors Degree and MA in Educational Management (CAR) from the Philippine Normal University. A campus paper adviser and trainer for 13 years. Currently, he is a school principal in one of the central schools in the Division of Quezon.)
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