By CESAR JOLITO III
A labor coalition has raised alarm over the worsening impact of oil price increases on workers, warning that rising inflation is significantly eroding incomes and could trigger broader economic and social consequences if left unaddressed.
In a press statement issued on March 22, Wennie Sancho, secretary general of the General Alliance of Workers Association (GAWA), said escalating global tensions, particularly in the Middle East, have contributed to higher fuel costs, driving up inflation and weakening the purchasing power of Filipino workers.
Sancho described the situation as a “downward spiral,” noting that workers are increasingly unable to cope with the rising cost of living.
In Western Visayas, the current daily minimum wage stands at P550 for workers in commercial and industrial establishments.
This translates to an estimated gross monthly income of around P14,300.
However, GAWA said inflation has significantly reduced the real value of these earnings.
Citing a Consumer Price Index of 139.13, the group estimates that the real daily wage has dropped to about P420.47.
In monthly terms, the value of workers’ salaries has effectively declined to approximately P10,932.35 — representing a loss of nearly P3,368 or about P130 per day due to diminished purchasing power.
The group also flagged concerns over the country’s rising debt burden, which is projected to reach P19.06 trillion by the end of 2026, with domestic debt accounting for P13.28 trillion and foreign debt at P5.78 trillion.
Inflation, it added, could climb further to around four percent by 2027.
To cushion the impact, GAWA is urging the government to consider wage adjustments or the implementation of an emergency relief allowance for workers.
However, Sancho noted that prospects for a wage increase in the private sector remain slim, claiming the proposal has been set aside by Malacañang.
He added that recent efforts to suspend transport fare hikes may provide temporary relief but do not address the underlying issue of stagnant wages.
The labor group also warned of broader economic risks if oil prices continue to rise, including potential business closures, reduced investments and job losses — particularly among small and medium enterprises.
Increased production costs could also threaten key industries such as agriculture, including the region’s sugar sector.
Sancho cautioned that low-income households and informal workers, including self-employed vendors without social protection, would be the hardest hit.
He added that prolonged economic strain could lead to declining living standards and heighten the risk of social unrest.
“The situation paints a worrying picture for labor,” Sancho said, stressing the need for urgent and decisive government intervention to prevent further economic deterioration./CJ, WDJ