Push and pull

They may sound like a broken record but labor groups are raising some very valid concerns. What are daily wage workers to do when the pay for their backbreaking work can barely cover the needs of their families? Or when their employers do not provide them even the most basic of benefits, like medical care coverage for ailments that afflict them, often as a result of the very nature of the work they perform? Or when, because of the sheer number of the unemployed seeking fewer and fewer available work, they have to make do with labor-only contracting, which does not allow them peace of mind in knowing that the job is still there for them next week?

All are legitimate concerns that come to the fore on Labor Day. But the workers’ plaints are often unappreciated in the annual din, perhaps because these are longstanding problems that have been crying for resolution all these years, to no avail, and because the push and pull between labor and capital are given factors in this country that may boast the latest in high-tech gadgetry or high fashion but still finds salvation in the export of workers (called “heroes”) in ever increasing numbers.

Is there a way to cut through the noise? The fact is that organized labor has largely been relying on predictable methods to advance the interests of its members—the fundamental ones being higher wages and job security. Take as an example the message emblazoned on banners often carried during labor rallies—the one that demands a “P125 across-the-board wage increase.” This battle cry has been raised for so long, and if labor economists are right, it has become more of a symbolic demand rather than one based on empirical evidence. As a result, no one seems to take it seriously anymore, except perhaps for some labor groups who genuinely believe they have a fighting chance at gaining this concession from hard-nosed employers. We submit that for all stakeholders to be able to move forward, each individual worker has to learn how the businessperson thinks, not mainly for the former to better engage the latter in battle, but for both of them to thrive under current economic conditions dictated by global imperatives.

The essence of this mental framework is based on the concept of productivity. Put another way, organized labor has to understand that “working hard” is nowhere near as effective as “working well.”

For employers, granting wage increases would make business sense only when employees produce greater output, especially output generated through improvements in efficiency. Barring that, wage increases are Band-aid solutions that ultimately serve to aggravate the problem of inflation down the road. Of course, organized labor has also traditionally relied on the strength of its ranks to persuade political policymakers to see things its way, which is another fatal flaw. Politicians are unfortunately often in bed with captains of industry because of the financial support the latter can provide during elections. Politicians have historically told laborers what they want to hear to gain their votes, but invariably implement “pro-market” policies once elected. This is the harsh reality with which labor groups have to come to terms.

What then is the solution? It may be this: that workers have to educate and empower themselves and learn to do their life’s work in a way that would make them uniquely useful—and, as such, more economically valuable—to their employers. To illustrate this concept, overseas Filipino workers are especially valuable to their employers—and, as such, get paid a lot more—even when there is a surplus of rival workers from other developing nations. Some posit that this is because Filipinos overseas, away from their comfort zones, tend to exhibit a level of creativity, efficiency and productivity needed to thrive and prosper—something that appears to be less urgent on home grounds.

The key then is for each worker to astutely capitalize on his/her unique selling proposition, as it were. Put another way, labor has to upgrade itself. Does that constitute a sellout? Hardly. It’s time to come to terms with the cold truths. Today’s historical epoch is still dominated by capital. And labor, although seemingly on opposition mode, needs to find a symbiotic relationship with capital so as to be able to work out a productive negotiation with it.