By Reihana Mohideen
MANILA — A March 27 meeting here of 301 factory-based union presidents, representing 76,634 union members, launched a campaign to increase the take-home pay of workers by demanding the scrapping of income tax on workers.
The meeting also set up the Fraternity of Union Presidents (KPUP), based on factory shop committees, to conduct the campaign. The KPUP has called for a major mobilisation of workers on May Day. If President Fidel Ramos does not agree to its demands, the KPUP is considering launching a strike movement on May 2.
Sara Rosales, from the BMP (Filipino Workers Solidarity), one of the major union federations involved in the campaign, explained to Green Left Weekly that the government collects around 24 billion pesos annually in income tax revenue from workers. Only some 2.9 billion pesos comes from the taxes paid by capitalists.
"So many millionaires in this country don't pay any taxes. In Forbes Park and White Plains [well-known millionaire enclaves], for example only 10 and two millionaires respectively pay any income tax. Meanwhile, workers who earn below the minimum wage of 165 pesos daily [around $8.20], and even part time and casual workers, pay this tax."
Despite government boasting about economic growth rates (in 1995 GNP increased by around 6%) unemployment has risen. In 1993, with growth rates of around 3%, unemployment was 9.3% (according to government estimates). In April 1995, with growth rates at around 5.5%, unemployment reached 11.9%.
But the real figures for both unemployment and underemployment are estimated to be much higher than this. According to the Freedom from Debt Coalition, around one fifth of all those who are officially employed are actually underemployed.
The purchasing power of wages has been substantially eroded in the last few months primarily by increases in the prices of basic commodities — rice, kerosene (primarily used by the poor for cooking, lighting etc), cooking oil and petrol — and an increase in consumption taxes.
The BMP estimates that the purchasing power of wages has declined by around 50 pesos per day since August. This represents around one third of the nominal daily wage. Around 20% of wages are consumed by direct taxes and another 12% by indirect taxes.
While President Ramos was triumphantly reporting the increase in growth rates in his state-of-the-nation address in July, 100,000 angry protesters rallied outside, with streamers stating that the GNP was actually 70%: to them, GNP meant "Gutom na Pilipino" — hungry Filipinos. The protesters were referring to a survey which showed that more than 70% of Filipinos considered themselves to be poor.
According to Rosales, they are not going for an across-the-board national wage increase "because the capitalists will use this as an excuse to retrench workers and for factory closures. So we are demanding an increase in take-home pay with the scrapping of the withholding tax. We also think that this is the best way to mobilise the largest number of workers."
Rosales explained that the KPUP is a rank-and-file union organisation. Only presidents from the factory shop committees can belong. So it has the possibility of uniting with different political blocs. There are 10 national union centres in the Philippines; all have separate activities on May Day and run separate campaigns.
Rosales stressed the importance of labour unity. The KPUP has taken important steps in this regard. "One hundred and ninety-one of the union presidents who attended the March 27 meeting came from non-BMP unions. There were some who belonged to the KMU [pro-Maoist] bloc of unions. Unfortunately, the KMU has already passed a resolution not to attend and participate in the KPUP", Rosales said.
The next major focus for the KPUP campaign is the mobilisation for May Day, when they hope to rally half a million workers. Some 145 organisers authorised by the KPUP are working full time covering workers in around 1300 factories. Some of these factories have a work force of around 8000.
"On May 1 we hope to have the biggest May Day mobilisation in the history of the Philippines labour movement. It will not only include the workers from the factories; it will also include a big mobilisation from the urban poor communities. On May 1 we await the president's reply to our demands. We either celebrate or we launch a strike movement", said Rosales.