LABOR groups have expressed concern over the looming threat of “stagflation,” which could lead to mass displacement of workers.
Federation of Free Workers (FFW) issued the statement after economic experts warned last week that the country may now be suffering from stagflation, a situation when economic contraction goes hand in hand with high inflation.
“The first to suffer will be the workers employed in a given sector . . . .since production will eventually shrink, the usual thing that happens is laying off or retrenching of laborers, if left unchecked by the economic managers,” FFW President Sonny Matula told BusinessMirror in an SMS.
The possibility of more workers losing their jobs worried labor leaders especially after the Department of Labor and Employment (DOLE) reported over 5 million workers were temporarily and permanently displaced last year with the onset of the Covid-19 pandemic.
Two-pronged solution
To address the threat of stagflation, they called on the government to resolve the supply issues of basic goods and provide much-needed cash aid to struggling workers during the pandemic.
Matula attributed the recent increase in inflation to disruption in the supply chain of some food items, particularly pork.
“The solution maybe is to adopt a massive intervention on the supply of whatever commodity is lacking. In this instant, it is the supply of pork due to African Swine Flu (ASF) and the lockdown in the countryside for the regular operation of pigeries and feeds,” Matula said.
For his part, Sentro ng Nagkakaisa at Progresibong Manggagawa (Sentro) secretary general Joshua Mata urged the government to go after pork hoarders as well as contain the spread of the ASF.
If the said measures will still be not enough to stabilize the price of pork, he said they support the government proposal to increase importation of pork, but he stressed on a temporary basis.
Last month, prices of pork products in some parts of the country, including Metro Manila, significantly increased as ASF continues to devastate local hog farms, reducing the supply of locally sourced pork.
Economic booster
Trade Union Congress of the Philippines spokesman Alan Tanjusay said the government could combat recession by granting their appeal to give another round of cash subsidy to workers.
He noted the measure will help spur consumer demand, which will be beneficial for both workers and companies.
“The cash aid can tide them over and help them get by during this stagflation. Our country needs a healthy and high morale workers if we want the economy to recover from this stagflation,” Tanjusay said.
Mata conceded that releasing cash aid to workers may contribute to inflation, but added that this will happen only if the supply of goods in the market is insufficient.
Thus, he said, government must simultaneously address both inflation and the recession issue.
Labor groups will raise the issue of stagflation as well as their proposed solutions at the next Tripartite Industrial Peace Council (TIPC) to be organized by DOLE this week.
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