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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 829 |
In accordance with our policy of establishing a viable equilibrium among prices, incomes and wages, and taking into account the imperatives of social justice and development, the following instructions shall be observed in the implementation of Presidential Decree No. 1614 in temporarily distressed, labor-intensive, and export-oriented industries:
1.
Cottage and handicrafts industry
Labor-intensive and
export-oriented, the cottage and handicrafts industry accounts for 47%
of all non-agricultural employment opportunities in the country. It is
also being relied upon, in the short term, as the main source of
additional income in the rural areas. In view of these considerations
and to insure its continuing viability and growth, taking into
consideration the well being of the workers in the industry,
Presidential Decree No. 1614 shall not apply to this industry until
further notice. However, all employers in the industry shall pay the
additional P2.00 increase provided under PD 1389 starting 1 April 1979.
This means the minimum wage in the industry shall be P10.00 for NACIDA
registered industry employers employing not more than 30 workers, and
for all other employers, P11.00 outside Metro Manila and P12.00 in
Metro Manila.
2. Sugar
industry
The sugar industry, agricultural
and industrial sectors, shall be exempted from Presidential Decree No.
1614 until the effective composite price of sugar to producers reaches
thirteen US cents per pound at its Philippine peso equivalent.
3. Hotel and
restaurants industry
In computing the minimum wage in
the hotels and restaurants industry, 50% of the credited tips and/or
service charges shall be included for the purpose of compliance with
Presidential Decree No. 1614.
4. Garments
industry
Presidential Decree No. 1614
shall apply in the labor intensive export industries for the shoe and
leather industry, furniture, electronics and the garments industry
effective May 1, 1979 in order to give garments manufacturers the
opportunity to make the necessary adjustments, especially in connection
with their overseas contracts. The P60 increase in allowance shall be
effective June 1, 1979.
5.
Construction and service contractors
Where the contract provides no
automatic escalation clause, compliance with Presidential Decree No.
1614 shall be the joint and several liability of the contractor and the
principal.
6. Retail and
service establishments
Presidential Decree No. 1614
shall not apply to retail and service establishments employing not more
than ten employers. However, these establishments shall pay on 1 April
1979 the P1 increase in minimum wage scheduled on 1 May 1979 under PD
1389 and another P1 increase on 1 May 1980.
7. Creditable
benefits
All increases in wages and
allowances granted unilaterally or under collective agreements in
excess of those required by law may be credited as compliance with the
emergency cost of living allowance increases under Presidential Decree
No. 1614 provided such increases were granted on or after December 1,
1978.
8. Private
educational institutions
Private educational institutions
shall comply with PD No. 1614 upon approval of their petitions for
tuition fee increases by the Ministry of Education and Culture.
You are hereby required to submit from time to time reports on the progress of the implementation of these instructions.
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