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EDITORIAL

All in a day's work

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email: joespiritu@eudoramail.com

Labor and production

May One or May Day is celebrated in the Philippines as Labor Day. We do not have any originality at all. In the democracies like the United States and Canada , Labor Day is celebrated on the first Monday of September. In the socialist and countries, Labor Day is celebrated on May 1. No wonder there will be demonstrations staged by the leftists group and their allies on the Philippine Labor Day. Demands for pay raises and other perks are asked, they might be right but how right? That is open to question.

Labor is defined as human toil or effort for the purposes of production. Although essential for the support of human life, its type and amount vary according to natural conditions and the structure and needs of society. Ancient civilizations slavery was the keystone of economic structure. War prisoners provided slave labor and accordingly labor was held in social contempt. Early Spanish conquerors had that attitude.

Industrial revolution and the emergence of the factory system reduced labor into a commodity to be purchased at the lowest possible price. Immobility and abundance depressed labor value and this resulted in human misery. As industrialization spread and intensified, labor was recognized as a special problem. Economists considered labor as one of the three elements of production the other two being land and capital. Members of the labor force became aware of their status and sought means for betterment of their conditions.

Western governments concerned themselves with the problem of what could be the share of labor of its production permitting labor and capital to solve the question by resorting to their relative positions of strength. For the purposes of bettering their own conditions labor organized. Organized labor is one aspect of the eternal desire of man to broaden his opportunities. But labor has to coexist with capital in order to survive. One cannot exist without the other.

To survive, labor and capital must rely on profit. For an industry to keep going, profit must always be present. No capital can survive without profit and profit is dependent upon production. Not only that, profit is also dependent upon the market whether local or international. Market prices fluctuate but labor expenses remain the same. Some industries try to keep in pace with the vagaries by a system of hirings, layoffs and rehiring but labor would not agree to such conditions.

The government can only legislate to allow each party to get an even share of the profits but it needs the understanding of both parties in order to keep functioning during the times of plenty and famine. It needs good faith on both sides so they can work to their mutual satisfaction. Labor must sustain productivity with the lowest cost possible; Capital must be able to share abundance of profit when it comes.

The Philippines is an agricultural country. Industries are few and far between. The few industries ate concentrated in the National Capital Region and employment opportunities are present in those areas. Unemployed rural labor is induced to urban migration. The concentration of labor on that area tends to lessen labor value since the plants and factories have plenty to choose from. More factories and plants are needed consequently more investors are required. Or else Filipinos will have to look for better opportunities abroad.

It is feared that there will be demonstrations held by labor this coming Labor Day. Agitations for increase in wages would be the primary agenda. The question is, can industry absorb the requested raise? Or does the capitalist enjoy abundant profits without giving labor their rightful share? Labor, because of their voting strength can compel the government to legislate wage increase but can the government compel the industrialists and merchants to increase wages if and when the profits are low? Increase in production will have to justify wage increase.

To survive, both parties must sit down and bargain in good faith, one needs the other. Violent demonstrations are not the answer. There is also a danger of the Philippine labor to price themselves out of the world market. There is other labor force in the region that might accept less.
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VOLUME XX No. 42
Tagbilaran City, Bohol, Philippines
April 30, 2006 issue