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After Flexing His Workers’ $5/Hour Pay, Foreign Businessman Sparks Debate Over ‘Exploitative’ Wages

  • Posted on Jan 13, 2022Jan 13, 2022
  • 7 minute read
  • Alex Alvarez
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After Flexing His Workers’ $5/Hour Pay, Foreign Businessman Sparks Debate Over ‘Exploitative’ Wages

Jan 13, 2022   •   Alex Alvarez

 

One side: It’s actually higher than average salaries in the PH

A lot of y’all are looking at this $5/hr from a USA standpoint, this is basically $50-$60K (USA) via comparison and what he said is not false.

— doja’s little kitten (@JaneeIRL) January 12, 2022

To give perspective, the minimum wage here in the Philippines is around $300 a month.

$1,000 per month is a relatively attractive package already and is an opportunity for many folks here.

— Jul dg (@juldgz) January 9, 2022


In the US, $5 per hour is lower than the federal minimum wage. But in the Philippines, when you convert that to a monthly wage, his workers would be making about P40,000 per month, which is much better than most local employees’ salaries. For most netizens on this side of the argument, that figure is much better to match the so-called cost of living in the Philippines, which is cheaper than in the US.

But is the cost of living really affordable for this $5/hour wage? That depends on a lot of things. Are you living alone? Are you living outside Metro Manila or any city? Do you work from home? If you answer yes, then a 40K figure might work for you, because you only need to worry about yourself in a location where things are more affordable and you don’t even have to commute to work. But if your answer to these is no, then you’ve got a lot more things to worry about: mouths to feed, family to provide for, a home in a city with an expensive mortgage or rent, and a whole lot more. Because living in Manila is very expensive, as data has shown — it costs P50,800 monthly for a single person.

 

Other side: If he can pay more for American workers, then why not pay the same for Filipino workers?

The problem most people found with what Huber said is that US workers average $7 to $15 per hour (a lot higher than the $5 he offers to his Filipino employees), and he has the capability to pay them better. But he’s not offering that to them, even when — according to him — we work “more efficiently and with a better attitude.”

As someone responsible for hiring at my place of of employment, I’d like to say you are a prime example of the issue with the American job market. The fact that you pay employees $5/hour shows the lack of value you put on the people who are fundamental to your success

— David (@dgm155) January 12, 2022


Even his fellow businessmen are saying Filipino workers are better than American counterparts because they are “much more likely to be unmotivated, ungrateful, and quit as soon as someone offers 1$/h more.” So why don’t foreign entrepreneurs like Huber offer better wages for their employees? He didn’t answer this question, but it seems he won’t hire any more employees from here because “they’ll come for ya.”

You’re free to run your business yourself and hire American workers for 3-5x the price, who are much more likely to be unmotivated, ungrateful, and quit as soon as someone offers 1$/h more.

— Adam Dimitrov (@adam_dimitrov) January 9, 2022

 

Just because it’s higher than the average pay doesn’t mean it’s not low-balling

Let’s get this straight: our minimum wage is not livable wage. Just because some businesses are paying a little higher than minimum wage doesn’t make it okay. It still doesn’t make that wage livable.

The Philippine minimum wage is P316 ($6.57) to P537 ($11.17) per day or about P6,320 to P10,740 per month. But unfortunately, that’s not enough. The cost of living in Manila is high — P50,800 per person per month high. The minimum wage shouldn’t be the basis of how much an employee is paid. It should be the amount of duties they tend to and the things they bring to the company. And Huber did say Filipinos work better than American counterparts.

american businessmen know FULL WELL that minimum wage does not equate to a livable wage. america has the same fucking issue.

but instead of meeting workers’ needs, folks like nick prefer to search for talent where choices are not abundant so they can exploit them for lesser pay. https://t.co/oawaBwTvM7

— Patis 🌳🧎🏻‍♀️ (@maengo69) January 11, 2022

Ah, the “Its higher than minimum wage” argument. IT’s so bullshit. Minimum wage here is by no means a living wage. you would still be considered poor by all accounts by it. If you’re gonna hire in the global south for positions with almost no vertical mobility, at least pay well.

— AJ Sunglao (@junsunglao) January 11, 2022

 

Unfortunately, part of the problem in this argument started right in our country

The only takeaway that can be derived *absolutely and without caveats* from that thread about outsourcing jobs to the Philippines for $5/hour is this: the greatest source of inequality in the world is borders — citizenship. Period.

— Arbie Baguios /bag•yos/ (@arbiebaguios) January 11, 2022


We all wish we weren’t discriminated against based on where we grew up and where we live, but that’s a large part of what’s happening in this debate. The current standards on wages were set by our own economy and local companies, and the reality is even if you get a decent office job, you won’t even be able to earn $5 per hour.

Exploitation na kung exploitation, pero heck, even a decent office job here won’t get you $5/hr unless managerial position ka na.

— JM Reyes ✈ (@jmsantosreyes) January 11, 2022

And data has proven it — that our income is actually determined by where we are born. And one of the first steps is, we need better minimum wages in the Philippines.

Still, there are a lot of nuances in this debate that would make us go over 8 points. So let’s end this with this question. If the argument of defending this wage of $5 per hour is due to the lower cost of living in the Philippines, would user Huber move and live here? Let’s think about that.

With the cost of living so much lower there, are you planning to *move* to the Philippines any time soon, Nick?

It seems like it would be a great deal, after all, since it’s a place so full of hard working, grateful people.

Or… is there something I’m missing that’s different?

— Jasper ‘Lope – Enough is Enough (@Jasperlope) January 11, 2022

 

What’s your take on this debate?

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Alex Alvarez

Alex Alvarez is an aspiring writer and amateur stargazer.

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