Labor as capital’s partner, not overhead expense
POPE FRANCIS, in his 2013 homily on the Feast of St. Joseph the Worker, reminded us that a society “that does not give work to people and that only looks to its balance books; that only seeks profit is unjust and goes against God.”
Over the years, we have been working to promote a deeper understanding and wider acceptance of the Church teachings on labor. We have also been presenting ongoing analyses of the social situation affecting labor adversely. Perhaps, it is time to be proactive and come up with a concrete plan of action. There is a need to strengthen organized labor and its support groups here in the Philippines and abroad.
We have explained ad nauseam this fundamental Church teaching: Labor is not a commodity. The reality, though, is: Capital still lists labor as one of the overhead expenses. And when we negotiate for a flat-rate minimum wage, we still work within the same inhuman paradigm that looks on wages as just one of many overhead expenses.
We must get out of this inhuman “box.” We must assert that labor is a human partner of capital. Without labor, capital cannot produce. In fact, capital was, in the first place, produced by labor.
With this new viewpoint, we suggest that labor be no longer included in the list of overhead expenses. This means that when the net profit is in place, an equitable division of the collective fruit of the collaboration between labor and capital should be followed. In the existing paradigm, labor’s surplus value goes exclusively to capital, and labor is just given a pittance. Now is the time to assert that, without labor and capital operating together, there cannot be profit. So, some kind of profit sharing we propose here.
The proposal will debunk capitalist claims that high wages will not make their business profitable. In view of this, the government has exempted some “distressed” and small businesses from giving the minimum wage. But this is not working! On the other hand, any uniform and across-the-board setting of the minimum wage will only rub on the unequal capacities separating the small capitalists from the big ones.
The Church social encyclical “Mater et Magistra” (Mother and Teacher) exhorted that labor’s remuneration “must be determined in accordance with justice and equity.” This means that workers must be compensated according to the fruits of their labor, which “allow them to live a truly human life.”
Another factor is the fear that foreign investments might not come in if wages are too high. The status quo is, government offers an unwritten come-on to foreign investors: “There is more fun and profit in the Philippines because labor is cheap and unorganized!” If labor is a necessary partner in the negotiations of how much foreign capital will share from net profit, reasonable foreign investors might see a different picture.
There must be a strategic and comprehensive plan of action relative to the new paradigm. We suggest that we propose a law embodying this paradigm. Toward this course of action, we further suggest the holding of a people’s conference to craft such a proposed law. The chances of such a proposed law passing Congress may be rather slim. But we use this legislative exercise as an opportunity to educate the people on the new paradigm through the public debate on the proposed law that will ensue.
The ultimate purpose is to strengthen labor union organizing. This will include coming up with a thorough analysis of the external and internal factors that hinder and promote genuine labor unions.
Pope Francis said that trade unions are essential for social change. Earlier, St. John Paul II’s “Laborem Exercens” (On Human Work) supported the right of workers to form labor unions in order to safeguard their vital interests.
We go back to the basic principle—genuine change cannot come from above (e.g., a new law); it can only come from below, led by the vanguard workers organized into strong labor unions, with the support of sympathetic sectors of society.
We are one with the workers and all people of goodwill in the call, “People over profit!”
Sicut Christus vivit (As Christ lives).
Gerardo A. Alminaza, DD, is bishop of San Carlos and head convenor of the Visayas Clergy Discernment Group.
