Every year, labor unions and associations of government employees (such as public-school teachers, health and medical staff, and national agency employees) in the Philippines renew their call for much-needed and justified wage and salary hikes. They rightfully cite the continuously rising cost of living which can be seen in the regularly increasing prices of basic commodities and goods, as well as excessive water and electricity rates spurred by relentlessly increasing gasoline prices.
In the same way that workers campaign actively for a wage hike, the Employers Confederation of the Philippines (ECOP) and local chambers of commerce and their members in the business community also consistently oppose it.
Glossing over the social justice arguments and the proven argument about the surplus value workers create, the reasoning of both sides is predictable and expected: workers say they need a wage hike because the wages they receive are far from being enough to cover other urgent needs of their families beyond food and shelter. For instance, the slightest health emergency is enough to wipe out savings if there were any, to begin with. Most Filipino families do not have health insurance, and recreation and amusement most often simply take the form of window-shopping trips to the nearest mall and eating at a fast food outlet because their budgets are enough for only those activities.
As for companies, their strongest argument against a wage increase is they have no funds to cover it. And why is this so? Despite the profits many companies still generate annually, their profit margins decrease because of operational costs, specifically because of their gargantuan electricity bills.
Lower electricity costs, carbon emissions
Electricity rates in the Philippines are among the highest in Asia. Consumer organizations including community-based women’s groups often hold picket actions and social media campaigns denouncing what they term as the “robbery” of energy distribution companies and the “betrayal” of the Department of Energy (DoE) and the Energy Regulatory Commission as they allegedly “collude” with the former in their habit of suddenly increasing electricity rates with the barest warning.
There is already a solution that companies should explore so they can cut their electricity bills and grant the wage hike demand of their workers. It’s also a solution that’s good for the planet. Companies should install solar PV systems on the rooftops of their warehouses, their offices, and even their manufacturing and assembly plants because these will definitely bring down their electricity bills. Installing a solar PV system is akin to paying in advance for at least 25 years of electricity, but at a reduced rate compared to the current electricity rates. These savings can have a tremendous impact on their business in many ways, and they can use the money they save to provide wage hikes and added benefits for their workers, or at the least improve occupational health and safety conditions in the workplace.
When companies use electricity from solar power, they reduce their consumption of fuels and in the process also reduce their greenhouse gas emissions and pollution. By using solar power, any business or company participates in the fight against global warming and bring down the Philippines’ dependence on foreign sources.
Also, going green will not only reduce companies’ operations expense but also gain an effective PR and marketing tool. It’s an established fact that companies with an environmentally responsible image generate positive responses from consumers. People prefer to patronize the products and services of companies that contribute to the social good.
All this, coupled with the falling prices of solar PV components and systems, makes installing solar on rooftops a good investment. In a nutshell, investing in solar power generates both long-term savings and quick payback for the environment.
These same arguments can also apply to government and government-owned and controlled corporations.
First responders in the Climate Emergency
In the wake of Greta Thunberg and the international youth movement’s call that all human beings and institutions take action against the worsening climate emergency, companies and government agencies should be among the first responders given that they have the most means to make the transition to green processes and operations. Manufacturing and industrial companies and their production and supply chain and logistics operations are among the biggest producers of greenhouse gases. As for government agencies, they should implement the very laws they pass, and practice the values they preach.
Finally, cutting fossil fuel consumption and promoting the development and utilization of renewable energy remains a major challenge that the Philippines has yet to decisively address. The Renewable Energy Act of 2008 (RA 9513) was enacted to further promote the development, utilization, and commercialization of renewable energy resources in the country. The law lays down the framework for the energy sector’s transition to a sustainable system with renewable energy as a prominent, viable, and competitive fuel option. The shift from fossil fuel sources to renewable forms of energy is the key strategy to ensure the success of the transition. Current initiatives in the pursuit of this policy are directed toward creating a market-based environment conducive to private sector investment and participation. Given this, national government agencies should also install solar PV systems on the rooftops of all their buildings and prove government sincerity in its response to climate change.
As for the savings they will generate, the government can use them to increase the salaries and benefits of its employees, and to regularize all its contractual employees, many of whom work in the Department of Social Welfare and Development (DSWD), the Department of Health (DOH), and the finance agencies.
There is no time to lose when taking action against climate change. The private sector and the government should take the lead and make all their rooftops shine with solar PV panels that will generate clean, safe, and renewable energy.#