THE PERCEIVED IMPACT OF MINIMUM WAGE TO PINK-COLLAR AND BLUE-

COLLAR JOB EMPLOYEES

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The Perceived Impact of Minimum Wage to Pink-Collar and Blue-Collar Job

Employees: around

City of San Fernando Pampanga

A Research
Presented to the Senior High School Department
Pampanga High School, City of San Fernando, Pampanga

In Partial Fulfillment of the Requirements

in Practical Research 1

Prepared by:

Evangelista, Charles M.

Figueroa, Angelito B.

Dantes, Macy A.

David, Abigail D.

De guzman, Kate S.

De Vega, Nicole N.

2019

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PAMPANGA HIGH SCHOOL – SENIOR HIGH SCHOOL DEPARTMENT
 THE PERCEIVED IMPACT OF MINIMUM WAGE TO PINK-COLLAR AND BLUE-
COLLAR JOB EMPLOYEES
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INTRODUCTION

I. BACKGROUND OF THE STUDY

The pink-collar term was coined during the Second World War, when women
occupied jobs as secretaries, typists, and transcribers. But as the U.S. economy evolved, these
jobs became defined as those that were traditionally dominated by women. They include
nurses, doctor's aides, dental assistants, and teachers.

The pink collar is the one who is employed in a job that is traditionally considered to
be women's work. The term pink-collar worker was used to distinguish female-orientated
jobs from the blue-collar worker, a worker in manual labor, and the white-collar worker, a
professional or educated worker in office positions.

This work did not require much professional training and did not offer equal pay or
prestige. Pink collar positions have increased as more and more women enters the workforce.
A pink-collar worker is usually a woman.

A blue-collar worker is a working-class person who performs manual labor. This

work may involve skilled or unskilled manufacturing, mining, automotive, carpenter,
maintenance, painter, plumber, construction, and many other types of physical work. Blue-
collar work often involves something being physically built or maintained.

Although blue-collar jobs do not require a bachelor’s degree, you must receive formal
training and apprenticeships to qualify for highly skilled occupations. Blue-collar are
typically classified as involving compensation by an hourly wage.

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A minimum wage is the lowest wage per hour that a worker may be paid, as
mandated by federal law. It is a legally mandated price floor on hourly wages, below which
non-exempt workers may not be offered or accept a job.

The purpose of minimum wages is to protect workers against unduly low pay. They
help ensure a just and equitable share of the fruits of progress to all, and a minimum living
wage to all who are employed and in need of such protection.

Most minimum-wage earners are young, part-time workers and that relatively few of
them live below the poverty line. The objectives of this study are to examine the
understanding of Pink-Collar and Blue-Collar Job Employees in the word “minimum wage”
and to determine how do Pink-Collar and Blue-Collar Job Employees make their wages fit in
a month.

II. LITERATURE REVIEW

According to Carl Lin (2016) in his study “A Literature Review of Minimum Wages”, the
minimum wage has been a core element of public policy for more than a century.

Originating in the 1890s in New Zealand and Australia, minimum wages spread to the
U.K. in 1909 and to nearly one-third of U.S. states during the next twenty years (Neumark
and Wascher 2009).

In 1938, the U.S. Congress passed a federal minimum wage law as part of the Fair Labor

Standards Act (FLSA). Since that time, minimum wages have been introduced in some form
or another in numerous other industrialized countries, as well as in some developing
countries.

As a result, by the 1990s, minimum wages existed in over on hundred countries from
all parts of the world, and the International Labor Organization (ILO) has designed the
minimum wage as an international labor standard (International Labor Organization 2006).

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Despite decades of economic research, policy debates about the costs and benefits of
minimum wages continue to the present day.

Based on their comprehensive reading of the evidence, Neumark and Wascher (2009) argue
that minimum wages do not achieve the main goals set forth by their supporters. Here are the
main findings in the literature:

First, minimum wages reduce employment opportunities for less-skilled workers,

especially those who are most directly affected by the minimum wage.

Second, although minimum wages compress the wage distribution, because of

employment and hours declines among those whose wages are most affected by minimum
wage increase, a higher minimum wage tends to reduce rather than to increase the earnings of
the lowest-skilled individuals.

Third, minimum wages do not, on net, reduce poverty or otherwise help low-income
families, but primarily redistribute income among low-income families and my increase
poverty.

Fourth, minimum wages appear to have adverse loner-run effects on wages and
earnings, in part because they hinder the acquisition of human capital.

Fifth, in comparison with the vast literature on the effects of the minimum wage on
employment and wages, research on the influence of minimum wages on firm profits has
been relatively little.

These findings come largely from U.S. evidence; correspondingly, these conclusions
apply most strongly to the evaluation of minimum wage policies in the United States.

For developing countries, like those in Latin America and the Caribbean (LAC), there
are also other issues to deal with, as coverage of minimum wages may be even broader and
its “bite” larger than in developed countries, and such impacts on employment may be
expected to be bigger.

In addition, in developing countries there may be issues of compliance which may be

lower in some industries or groups of workers, or types of firms than those in developed
countries.

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COLLAR JOB EMPLOYEES
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The impacts of minimum wages also depend on how large or small the increase in
minimum wage might be, and according to Terrell and Almeida (2008), in LAC, the
minimum wages tend to be set at relatively high levels, which might explain the dis-
employment effects among the low-skilled, low-wage workers.

Yet, another factor that may impinge on minimum wages effects on employment is
how low or high the inflation might be (Lemos, 2004).

Many LAC countries have had high inflation rates, but unlike these countries, in
Ecuador, the inflation rate has been low in the last few years, thanks to its regime of
dollarization, while the increases in minimum wages have been generous.

According to William Depasupil (2018) in his article entitled “Minimum wage no

longer sufficient”, the minimum wage is no longer sufficient to minimum wage earners to
provide the daily basic needs of their family.

The article says that some of the four million Filipinos who receives minimum wage
in the National Capital Region (NCR) and elsewhere in the country is no longer enough to
sustain the daily basic needs and services of a family.

Pointing out figures from the Philippines Statistics Authority (PSA), as of March
2018, the inflation rate come to 5.2 percent, the highest percentage reached in the last five
years, the independent think-tank IBON foundation said.

IBON measure that P 1,168 is essential daily to sustain a family of six, at the same
time P937 is necessary for a family of five, running by the inflation rate for the month of
March.

As IBON said in a statement, “The NCR nominal minimum wage of P512 is just 43.8
percent of the P1,168 FLW [family living wage] in March this year. This translates into a
significant wage gap of P 656 or 56.2 percent. For a family of five, the gap was nearly half
[47.4 percent] of the FLW. These wage gaps grew despite the regional wage board’s approval
of a P21 minimum wage increase from P491 to P512 last October 2017,”

To address the dilemma, there should be an urgent, considerable, and sweeping

minimum wage rise to help the workers and their families to get handle on high inflation.

The group of workers called the government for a P750 national minimum wage and
to suspend the application of Tax Reform Acceleration and Inclusion Act or TRAIN law.
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The TRAIN law is amid the drivers if inflation and it should be asses and revise,
stated by IBON.

The Associated Labor Union-Trade Union Congress of the Philippines (ALU-TUCP),

the country`s biggest labor group, said that it supports IBON’s call for a P750 daily national
minimum wage.

Stated by Alan Tanjusay, the ALU-TUCP spokesman,” The value of P512 minimum
wage in NCR fell by P155 a day due to inflation. The purchasing power of P512 is now only
P357 due to inflation exacerbated by TRAIN.”

“ALU-TUCP will be asking for wage increase from employers as soon as we

completed our information and data even if the one-year period has not yet expired,” he
added.

In Metro Manila on October 5, 2017, a last wage increase was granted to minimum
wage earners amounting to P21 per day.

A P500 monthly cash or voucher subsidy for minimum wage receivers throughout the
country as a government safety net form inflationary effects of the TRAIN law would be
press also said by Tanjusay.

III. STATEMENT OF THE PROBLEM

This study determined the perceived impact of below minimum wage to pink collar job
employees around Pampanga.

This study sought to answer the following question:

1. Is your wage enough to sustain your daily needs? If yes, why? If no, why not?
2. How did you manage to fit your wage to sustain your daily needs?

IV. SCOPE AND DELIMITATION

This study was focused on Pink-Collar and Blue-Collar Job employees. It examined
the wage that every employee gets to know if the minimum wage that they received is
enough to provide their daily and basic needs. Five participants were selected using

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PAMPANGA HIGH SCHOOL – SENIOR HIGH SCHOOL DEPARTMENT
 THE PERCEIVED IMPACT OF MINIMUM WAGE TO PINK-COLLAR AND BLUE-
COLLAR JOB EMPLOYEES
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purposive sampling method. This study was conducted around City of San Fernando,
Pampanga from November 2018 to February 2019.

V. SIGNIFICANCE OF THE STUDY

The findings of this study are significant in helping the respondents (pink-collar and blue-
collar job workers), students, locals, government, and the future researchers to have a wider
outlook about the impact of below minimum wage to pink collar job employees.

To the respondents, the outcome of this research will give them a broader knowledge
about minimum wage based on the perception of the pink-collar and blue-collar job
employees. It will help the pink-collar and blue-collar job employees to be informed about
their rights and have the courage to speak out about on what they experience about their job.

To the students, they can use it as a tool for building knowledge about the rise of pink-
collar and blue-collar job workers who receive below minimum wage thus it can help them to
increase awareness on what`s happening.

To the young generation, it will help them to be sensible that it is not easy to be a pink-
collar and blue-collar worker who receives below minimum wage, they will understand the
situation of the pink-collar job workers and give them appreciation.

To the locals, they will notice the value of people who works under pink collar and blue-
collar job and give them privileges.
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THE PERCEIVED IMPACT OF MINIMUM WAGE TO PINK-COLLAR AND BLUE-
COLLAR JOB EMPLOYEES
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To the government, the result of this study may give them basis to take actions upon
protecting the rights of pink-collar job employees and they may create some programs to help
them and give pledge to pink collar job employees.

To the future researchers, this study may serve as their basis to their research to make
improvements and a way to prove lies and to support truths.

METHODOLOGY

This section represents the methodology that the researchers employed in the study.
Specifically, it discusses the research design, participants, instrument, data collection, ethical
considerations, and data analysis.

Research Design

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This is a qualitative research employed a descriptive design. The researcher may use a
qualitative research method in which they describe the kind and quality of a subject while
interpreting and attempting to understand an event. This method enables the researcher to
use texts to explain their findings (Kowalczyk, 2016.) For the purpose of this study,
descriptive research was used to know the perceived impact of below minimum wage to blue
collar and pink-collar job employees.

Participants

The participants of this study are the blue-collar and pink-collar job employees who
are living around San Fernando Pampanga and are receiving below minimum wage. They are
chosen according to the research purpose using purposive sampling. The purposive sampling
technique, also called judgment sampling, is the deliberate choice of a participant due to the
qualities the participant possesses. It is a nonrandom technique that does not need underlying
theories or a set number of participants. Simply put, the researcher decides what needs to be
known and sets out to find people who can and are willing to provide the information by
virtue of knowledge or experience (Bernard, 2002.) The criteria set by the researchers are the
following; (1) ages 25-50 blue-collar and pink-collar job employee (2) the wage that the
receive is P400.00 and below (3) the job that they are working is under pink-collar such as
sales lady, manicurist, and hairdresser. And working under blue collar job such as product
line, inspector, and maintenance.

Instrument

The researchers gathered data through conducting a face-to-face interview with the
participants. Interview are widely used as data collection tool in qualitative research. They
are typically used as research strategy to gather information about the participants’
experiences, views and beliefs concerning a specific research question or phenomenon of
interest (Lambert and Loiselle, 2007.) The researchers used semi-structured interview. The

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PAMPANGA HIGH SCHOOL – SENIOR HIGH SCHOOL DEPARTMENT
THE PERCEIVED IMPACT OF MINIMUM WAGE TO PINK-COLLAR AND BLUE-
COLLAR JOB EMPLOYEES
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semi-structured (sometimes known as semi-standardized, in-depth, or focused) interview as a
research method has its roots in the psychiatric or therapeutic interview, but unlike this
approach whose course is in minimal control of the interviewer and mostly guided by the
interviewee, the semi-structured interview introduces rather more control on the side of the
interviewer (Cohen et al. 2007.) Furthermore, the researchers made use of an audio-recorder.
The recording of data through devices such as audio-recorders has been a significant
development within qualitative research, replacing the researchers handwritten notes.
Recording research interviews is a great way to capture qualitative data. An audio-recording
of an interview allowed the researcher to refer back to the interview and take a fresh look at
the interview data.

Data Gathering Procedure

First the researchers made a permission letter signed by their research teacher,
assistant principal, principal, and the assistant principal stated that they are allowing the
researchers to conduct their study outside the school premises. Then the researchers wrote a
consent letter of approval to their parents/guardian upon allowing them to conduct a face-to-
face interview outside the school premises for their study. Next, the researcher wrote another
consent letter for the participants indicated their agreed voluntary participation that includes
their rights and stated the study and its purpose. After the letter was signed, the face-to-face
interview took place at every respondent`s place and once again the researchers introduced
the study and informed the participants if where the study be used and started to ask
questions.

Ethical Considerations

The participants have an informed consent wherein they have the rights to know the
purpose of the study and how the findings be used. Also, they are not mandatory to

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PAMPANGA HIGH SCHOOL – SENIOR HIGH SCHOOL DEPARTMENT
THE PERCEIVED IMPACT OF MINIMUM WAGE TO PINK-COLLAR AND BLUE-
COLLAR JOB EMPLOYEES
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participate in the study, asking them for their voluntary participation. The researchers will
keep the privacy of each participant and their identity will stay unknown.

Data Analysis

The thematic analysis was use in this study and it involved four phases, namely; (1)
The researchers collected, documented, and described the data taken from the respondents;
(2) The researchers transcribed the data gathered through face-to-face interview; (3) The
researchers identified the significant details and categorized descriptors and components.
Repeated descriptions noted and the perceived impact of below minimum wage to pink-collar
and blue-collar job employees were identified; (4) Major themes were identified to the views
and description of the perceived impact of below minimum wage to pink-collar and blue-
collar job employees.

FINDINGS

This section presents and encapsulates the finding obtained in the said study. It
includes the themes that were assigned by the researchers and the verbatim transcription
expressed by the participants.

Equitable Wage. All of our participant mentioned that the definition of

minimum wage is equitable or fair wage that they receive.

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“For me, minimum wage is the lowest permitted wage of law or
agreement that is based on a contract.” – BPa

“Minimum wage is the exact salary from the companies’” – BPb

“Provided by the government or stated by the government to an

employee’s salary in every province or in any city.” – BPc

“My understanding of minimum wage is the right salary if it is enough

for the family” – PPa, PPb
Insufficient Wage. Based on the results that we gathered, 3 of the participants
that we interviewed, stated that their salary is enough and 2 of them stated that
it is not enough.
“My salary is enough to sustain my daily needs. Because I’m not yet
married and still single.” – BPa, BPb, PPa

“No, because as a married woman, minimum wage is not enough for

me.” – BPc, PPb

Limitations in Time and Income. Most of our participants doesn’t have

enough time to earn extra income and do part time jobs.

“I have a monkey business. I buy bentelog. It is worth 20 pesos. Then I

buy it near my place and sell it to my co-workers for 30 pesos.” – BPa

“For now, I don't have an extra income, this is the only job I'm
working.” – BPb

“I cannot do anything to make my salary increase or to have an extra

income because I only have limited time.” – BPc, PPb

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“I only buy the things that I really need and then I save the remaining
money.” – PPa

Making Right Choices. Our participants stated that they choose to buy what
things that are needed for them to make their salary fit in a month of expenses.

“I manage my salary to fit in a month by keeping more or less than

25% of my weekly salary.” – BPa

“I think because I have a low salary, I refrain by spending is my way

to fit my salary.” - BPb

“I lessen my expenses. If not needed, I’m not buying it. I’m only
spending at necessary things we need to use.” – BPc, PPa

“Sometimes, I borrow money, sometimes I lessen my expenses.

Sometimes, nothing else that’s all.” – PPb

DISCUSSION

This chapter presents the discussion of the findings of the study starting with the first
objective. The first aim of this study is to determine the understanding of the blue-collar and
pink-collar job workers about the term minimum wage. The theme drawn out from the
majority of the participants is Insufficient Wage. Where the wage that our participants
receive are not enough for their daily needs and daily expenses. This is supported by the
article of William Depasupil (2018) entitled, “Minimum wage no longer sufficient; that some

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PAMPANGA HIGH SCHOOL – SENIOR HIGH SCHOOL DEPARTMENT
THE PERCEIVED IMPACT OF MINIMUM WAGE TO PINK-COLLAR AND BLUE-
COLLAR JOB EMPLOYEES
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of minimum wage earners in the National Capital Region (NCR) and elsewhere in the
country is no longer sufficient to support a family among then rising goods of basic needs
and services.

The second objective of this study determined how did the pink-collar and blue-collar
job employees manage their wage to fit in a month. The theme drawn out from the majority
of the participants is Making Right Choices. The participants choose to spend their money
for their needs instead of buying the things that they want for them to be able to save money.
This is supported by the study of Denton, Fretz, & Spencer (2011) Saving in a simple
definition is ‘the excess of income over all expenditure’, where the expenditures are also
mentioned as consumption, which is life contributions and insurance (if any), and the saving
behavior is the money keeping activity after they use it for their own wealth

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

Based on the findings of this study and the first objective of this study, the researchers
found out that the wage the participants (single or unmarried) receive are sufficient since they
are just spending for themselves and while the other participants (married) who receives
minimum wage, stated that the wage that they receive is insufficient since they are spending
for the needs of the whole family.

For the second objective of this study, the researchers found out that the participants
spend only for their needs and set aside their wants. Sometimes they even borrow money just
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to buy food for a day. And they lessen their expenses as much as they can. Since their salary
are just fix or sometimes not enough to sustain their daily needs and expenses.

RECOMMENDATIONS

To blue-collar and pink-collar job employees, the researchers advise that the result of
this study may help them to think that before getting married make sure that the salary that
they earn is more than enough for them to be able to provide the daily needs of their family.

To students, the researchers recommends that they may use the result of this study to
as a tool for building knowledge and understand more about the experiences of the blue-
collar and pink-collar job employees. Also, for them to be more knowledgeable about
minimum wage.

To the government, the researchers suggest that they may use this study as basis for
them to have a knowledge about the experiences of blue-collar and pink-collar job employees
and may take some actions to have a sufficient minimum wage.

To future researchers, the researchers encourages to use this study as a reference if

this is related to the study that they will going to conduct and give additional information that
the past researchers wasn`t able to conclude.

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PAMPANGA HIGH SCHOOL – SENIOR HIGH SCHOOL DEPARTMENT
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PAMPANGA HIGH SCHOOL – SENIOR HIGH SCHOOL DEPARTMENT