RULES OF PROCEDURE ON MINIMUM WAGE FIXING.

Section 1. Title. This Rules shall be known as the Rules of Procedure on Minimum Wage Fixing.

Sec. 2. Construction. This Rules shall be liberally construed to carry out the objectives of R.A. 6727. 

Sec.  3. Scope. This Rules shall govern proceedings in the National Wages and Productivity Commission and the Regional Tripartite Wages and Productivity Boards in the fixing of minimum wage rates.

Sec.  4. Definition of Terms. As used in this Rules:

(a) "Act" means Republic Act No. 6727;

(b) "Board" means the Regional Tripartite Wages and Productivity Board;

(c) "Chairman" means Chairman of the Commission;

(d) "Commission" means the National Wages and Productivity Commission;

(e) "Industry" refers to a trade, business or a sector thereof, or group of businesses in similar or allied activities in which individuals are gainfully employed;

(f) "Locality" refers to a geographical area smaller than a province and includes industrial estates/export processing zones;

(g) "Member" refers to the members of the Commission or Board, including its Chairman;

(h) "Minimum Wage Rates" refer to the lowest basic wage rates that an employer can pay his workers, as fixed by the Board, and which shall not be lower than the applicable statutory minimum wage rates;

(i) "Party" means any legitimate organization of workers or employers with substantial interest in the region, province or industry therein as determined by the Board, and who stands to be directly affected by the Commission/Board proceedings, orders, decision or resolutions.

(j) "Region" refers to a geographical area composed of a group of provinces and/or cities as defined under PD 1, as amended, including those that may be subsequently established by law;

(k) "Regional Chairman" means the Chairman of the Board;

(l) "Statutory Minimum Wages" refer to the lowest basic wages as provided by law;

(m) "Wage Distortion" shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation;

(n) "Wage Order" refers to the Order promulgated by the Board pursuant to its wage fixing authority.

Sec.  1. Conduct of Wage and Productivity Studies. The Board shall, subject to guidelines issued by the Commission, conduct continuing studies of wage rates, productivity and other conditions in the region, provinces or industries therein. The Board shall investigate and study all pertinent facts, and based on standards and criteria prescribed herein, shall determine whether a wage order should be issued.

Sec.  2. Standards/Criteria for Minimum Wage Fixing. The minimum wage rates to be established by the Board shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the workers within the framework of national economic and social development goals. In the determination of regional minimum wages, the Board shall, among other relevant factors, consider the following:

(a) Demand for living wages;

(b) Wage adjustment vis-a-vis the consumer price index;

(c) Cost of living and changes therein;

(d) Needs of workers and their families;

(e) Need to induce industries to invest in the countryside;

(f) Improvements in standards of living;

(g) Prevailing wage levels;

(h) Fair return on capital invested and capacity to pay of employers;

(i) Effects on employment generation and family income;

(j) Productivity; and

(k) Equitable distribution of income and wealth along the imperatives of economic and social development.

Sec.  3. Procedures in Minimum Wage Fixing.

(a) Motu Proprio by the Board.

Whenever conditions in the region, province or industry so warrant, the Board may, motu proprio or as directed by the Commission mandate action or inquiry to determine whether a wage order should be issued. The Board shall conduct public hearings/consultations in the manner prescribed herein.

(b) Wage Fixing by Virtue of a Petition Filed.

1. Form and Content of Petition. Any party may file a verified petition for wage increase with the appropriate Board in ten (10) typewritten legible copies which shall contain the following:

(a) name/s, and address/es of petitioner/s and signature/s of authorized official/s;

(b) grounds relied upon to justify the increase being sought;

(c) amount of wage increase being sought;

(d) area and/or industry covered.

2. Board Action.

If the petition conforms with the requirements prescribed in the preceding sub-section b.1, the Board shall conduct public hearings/consultations in the manner prescribed herein, to determine whether a wage order should be issued.

3. Publication of Notice of Petition/Public Hearing.

A notice of the petition and/or public hearing shall be published in a newspaper of general circulation in the region, and/or posted in public places as determined by the Board. The notice shall include the name/s and address/es of the petitioner/s, the subject of the petition and the date/s, place/s and time of the hearings. The publication or posting shall be made at least fifteen (15) days before the date of initial hearing and shall be in accordance with the suggested form herein attached as Annex "A".

4. Opposition.

Any party may file his opposition to the petition on or before the initial hearing, copy furnished the petitioner/s. The opposition shall be filed with the appropriate Board in ten (10) typewritten legible copies which shall contain the following:

(a) name/s and address/es of the oppositor/s and signature/s of authorized official/s;

(b) reasons or grounds for the opposition; and

(c) relief sought.

5. Consolidation of Petitions.

If there is more than one petition filed, the Board may, motu proprio or on motion of any party, consolidate these for purposes of conducting joint hearings or proceedings to expedite resolutions of petitions. Petitions received after publication of an earlier petition need not go through the publication/posting requirement.

6. Assistance of Other Government and Private Organizations.

The Board may enlist the assistance and cooperation of any government agency or private person or organization to furnish information in aid of its wage fixing function.

Sec.  1. Public Hearings/Consultations. In the performance of its wage fixing functions, the Board shall conduct public hearing/consultations, giving notices to employees' and employers' groups, provincial, city and municipal officials and other interested parties.

Sec.  2. Who May Conduct. Hearings may be conducted by the Board en banc or by a duly authorized committee thereof. The Board shall determine the date/s, place/s and time of the hearings which shall be open to the public except as otherwise requested by a party and so determined by the Board.

Sec.  3. Order of Hearing. As much as practicable, the petitioner/s shall present his/their evidence first, followed by the oppositor/s. The Board may then call on other persons to present their views and submit position papers and other supporting documents.

Sec.  4. Duration of Hearings. Hearings shall be concluded as soon as practicable, preferably within forty five (45) days from date of initial bearing except when conditions in the region warrant otherwise.

Sec.  5. Records of Proceedings. The Board Secretariat shall keep records/minutes of all Board proceedings, duly noted by the members of the Board.

Sec.  6. Non-applicability of Technical Rules. The Board shall not be bound strictly by technical rules of evidence and procedures.

Sec.  7. Prohibition Against Injunction. No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal or any other entity against any proceeding before the Commission or Board.

Sec.  1. Issuance of Wage Order. Within thirty (30) days after conclusion of the last hearing, the Board shall decide on the merits of the petition, and where appropriate, issue a wage order establishing the minimum wage rates to be paid by employers in the region, which shall in no case be lower than the applicable statutory minimum wage rates. These minimum wage rates include wages by industry, province or locality as may be deemed necessary by the Board: provided, however, that such wage rates shall not be lower than the regional wage rates unless expressly specified in the wage order.

The Board shall furnish the Commission a copy of the decision on the petition or the Wage Order.

Sec.  2. Contents of Wage Order. A Wage Order shall specify the region, province, or industry to which the minimum wage rates prescribed therein shall apply and exemptions, if any.

Sec.  3. Frequency of Wage Order. Any Wage Order issued by the Board may not be disturbed for a period of twelve (12) months from its effectivity, and no petition for wage increase shall be entertained within the said period. In the event, however, that supervening conditions, such as extraordinary increase in prices of petroleum products and basic goods/services, demand a review of the minimum wage rates as determined by the Board and confirmed by the Commission, the Board shall proceed to exercise its wage fixing function even before the expiration of the said period.

Sec.  4. Effectivity. A Wage Order shall take effect fifteen (15) days after its publication in at least one (1) newspaper of general circulation in the region.

Sec.  5. Implementing Rules/Regulations. The Board shall prepare the necessary rules and regulations to implement the Wage Order, subject to approval of the Secretary of Labor and Employment.

Sec. 6. Correction of Error. The Board may, motu proprio or upon manifestation of any party, proceed to correct any patent error, errors in computation or typographical errors in any wage order.

Sec.  1. Appeal to the Commission. Any party aggrieved by a Wage Order issued by the Board may appeal such Order to the Commission by filing a verified appeal with the Board in three (3) typewritten legible copies, not later than ten (10) days from the date of publication of the Order. The appeal shall be accompanied by a memorandum of appeal which shall state the grounds relied upon and the arguments in support thereof.

The Board shall serve notice of the appeal to concerned parties.

Sec.  2. Grounds for Appeal. An appeal may be filed on the following grounds:

1. non-conformity with prescribed guidelines and/or procedures;

2. questions of law;

3. grave abuse of discretion.

Sec.  3. Transmittal of Records. Immediately upon receipt of the appeal, the Board Secretariat shall transmit to the Commission Secretariat the appeal and a copy of the subject Wage Order together with all relevant documents.

Sec.  4. Period to Act on Appeal. The Commission shall decide on the appeal within sixty (60) days from the filing thereof.

Sec.  5. Effect of Appeal. The filing of the appeal does not operate to stay the Order unless the party appealing such Order shall file with the Commission an undertaking with a surety or sureties satisfactory to the Commission for payment to employees affected by the Order of the corresponding increase, in the event such Order is affirmed.

Sec.  1. Quorum. Four (4) members of the Commission or Board shall constitute a quorum to transact business, provided each sector is represented. The Board may dispense with the latter proviso if the two (2) representatives of any sector fail to attend two (2) consecutive scheduled meetings with proper notice, without justifiable reason.

Sec.  2. Votes Required. Any decision of the Commission or Board shall require the affirmative vote of not less than four (4) of its members.

Sec.  1. Correction of Wage Distortion. Where the application of any prescribed wage increase by virtue of a Wage Order issued by the Board results in distortions of the wage structure within an establishment, the employer and the union shall negotiate to correct the distortions. Any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement and, if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary arbitrator or panel of voluntary arbitrators within ten (10) days from the time said dispute was referred to voluntary arbitration.

In cases where there are no collective agreements or recognized labor unions, the employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and, if it remains unresolved after ten (10) days of conciliation, shall be referred to the appropriate branch of the National Labor Relations Commissions (NLRC). It shall be mandatory for the NLRC to conduct continuous hearings and decide the dispute within twenty (20) days from the time said dispute is submitted for compulsory arbitration.

The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any increase in prescribed wage rates pursuant to the provisions of the Wage Order.

Sec.  1. Application For Exemption. Whenever a wage order provides for exemption, applications thereto shall be filed with the appropriate Board which shall process the same, subject to guidelines issued by the Commission.

Sec.  1. Enforcement of Wage Orders. Compliance with the Wage Orders issued by the Board shall be enforced by the appropriate Regional Office of the Department of Labor and Employment in accordance with enforcement procedures under Articles 128 and 129 of the Labor Code as amended.

Sec.  1. Disposition of Pending Matters. The Commission/Board shall exert all efforts to dispose of all matters pending before it within the shortest possible time.

Sec.  1. Commission/Board Records. All official records of the Commission/Board may be made available to interested parties, upon request, except those considered confidential and which cannot be divulged without violating a private right or prejudicing the public interest.

Sec.  2. Custody of Records and Other Documents. The Executive Director of the Commission Secretariat and the Head of the Board Secretariat shall be responsible for the safekeeping of all official records of the Commission and Board, respectively.

Sec.  1. Repeal and Separability.All existing rules, regulations or orders or any part thereof inconsistent with this Rules are hereby repealed, amended or modified accordingly. If any part or provision of this Rules is declared unconstitutional or illegal, the other parts or provisions shall remain valid.

 

(Sgd.) RUBEN D. TORRES
Chairman, NWPC and Secretary of Labor and Employment

(Sgd.) CAYETANO W. PADERANGA, JR.
Vice-Chairman, NWPC
NEDA Director-General

(Sgd.) CEDRIC R. BAGTAS
Member, NWPC and Labor Sector Representative

(Sgd.) FRANCISCO R. FLORO
Member, NWPC
Employer Sector Representative
 
 

(Sgd.) VICENTE S. BATE
Member, NWPC
Labor Sector Representative

 
 

Member, NWPC
Executive Director, NWPC Secretariat

 

ANNEX "A"

MINIMUM WAGE ADJUSTMENT PETITION

NOTICE IS HEREBY GIVEN THAT A PETITION FOR A MINIMUM WAGE INCREASE HAS BEEN FILED WITH THE REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD — REGION __________, PURSUANT TO REPUBLIC ACT NO. 6727, DOCKETED AS CASE NO. ________

PETITIONER ___________________________________________

WAGE INCREASE SOUGHT: ______________________________

REASON/S: ______________________________________________

__________________________________________________________

_________________________________________________________

ANY INTERESTED PARTY MAY FILE AN OPPOSITION. INITIAL HEARING OF PETITION IS SET ON THE _____ DAY OF _________, 199 _____, AT ___________ A.M./P.M., AT ___________

____________________

Regional Board Chairman