Human Dignity and Fair Wages
Human Dignity: Human dignity is a fundamental right, and work plays a crucial role in upholding it. As
the International Labour Organization (ILO) (2023) emphasizes, decent work is essential for treating
workers as "ends in themselves, not mere means." However, the increasing automation of supply chains
threatens this principle by reducing workers to expendable inputs in a production process. Even
seemingly "low-skilled" supply chain jobs provide individuals with a sense of purpose, contribute to their
self-worth, and enable them to support their families (Conroy, 2010). Automation risks displacing these
individuals, potentially leading to increased poverty and social unrest, contradicting ethical frameworks
like the UN Guiding Principles on Business and Human Rights. Respecting human dignity means
recognizing the inherent value of labor and ensuring opportunities for meaningful work, as affirmed by
the Universal Declaration of Human Rights' emphasis on the right to work and just and favorable
conditions (UN, 1948). Work provides purpose, social connection, and the means to build a life;
irresponsible automation can strip individuals of these essential elements, leading to widespread
unemployment and social unrest (Gallie & Paugam, 2000). A human-centered approach, as advocated by
the ILO's Decent Work Agenda, recognizes this intrinsic value of work and seeks to harness technology in
a way that complements, rather than replaces, human contribution.
Fair Wages: Fair wages are essential for economic security and social well-being in the Philippines.
Currently, a significant portion of the Filipino workforce, over 16%, earns below the minimum wage
(World Bank, 2022), highlighting the prevalence of income insecurity. Prioritizing human labor in supply
chains can contribute to income stability for families, thereby playing a crucial role in poverty reduction.
Research indicates a strong correlation between fair wages and improved productivity, as well as
enhanced social cohesion (ADB, 2021). Just from the study of Coviello, Deserranno, and Persico (2022)
discovered that workers become more productive and are terminated less often after a minimum wage
increase. However, the increasing automation of supply chains poses a threat to these gains. As the World
Bank's studies on automation in developing economies warn, automation can lead to job polarization and
exacerbate existing income inequality. While some highly skilled jobs may be created, many existing
roles, particularly in manufacturing and logistics, are at risk of displacement, concentrating wealth among
a select few and leaving a large segment of the population behind. This concern is echoed by the Oxford
Martin School's research on the impact of automation in developing countries, which highlights the
potential for substantial job displacement and the urgent need for proactive policies to mitigate these
risks. Therefore it is critical to prioritize fair wages and the equitable distribution of the benefits of
technological progress to ensure that automation promotes inclusive growth, rather than further
marginalization.
Prioritizing human labor aligns with the Philippines’ duty to protect dignity and equity. While automation
has merits, a balanced approach—investing in workers’ skills and enforcing fair wages—ensures
sustainable growth. As Nobel laureate Muhammad Yunus argues, “Technology should empower people,
not replace them.”
Disadvantage: Lower Operational Efficiency and Higher Costs
Human labor is slower and less consistent than automation, increasing costs for businesses. For example,
manual sorting in warehouses can lead to errors and delays, reducing supply chain reliability.
Rebuttal:
The argument that prioritizing fair wages and worker well-being undermines economic efficiency
overlooks critical evidence to the contrary. Research from the Harvard Business Review (2022)
demonstrates that companies committing to equitable pay practices achieve 25% lower employee turnover
and 15% higher productivity, gains that substantially offset initial cost increases and bolster long-term
operational stability. Moreover, dismissing the human cost of labor displacement ignores broader societal
consequences. The International Labour Organization (ILO, 2023) warns that displacing workers without
robust safety nets elevates poverty rates by 8–12% in developing economies—a social and economic
burden far outweighing any short-term savings. Prioritizing ethical labor practices is not just morally
imperative but economically rational, fostering sustainable growth while mitigating systemic harm.
References:
https://documents1.worldbank.org/curated/en/936911581022089414/pdf/Is-Automation-Labor-Displacing
-in-the-Developing-Countries-Too-Robots-Polarization-and-Jobs.pdf
https://www.oxfordmartin.ox.ac.uk/news/201601-technology-at-work-2
https://www.ilo.org/global/topics/decent-work/lang--en/index.htm
https://arrow.tudublin.ie/aaschssldis/50/
https://documents.worldbank.org/en/publication/documents-reports/documentdetail/97907148844666958
0/employment-and-poverty-in-the-philippines
https://www.adb.org/what-we-do/topics/social-development/overview
https://hbr.org/2023/05/the-high-cost-of-neglecting-low-wage-workers
https://www.weforum.org/press/2020/01/the-reskilling-revolution-better-skills-better-jobs-better-educatio
n-for-a-billion-people-by-2030/
