Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
Regional Tripartite Wages and Productivity Board - I
City of San Fernando

WAGE ORDER NO. RB 1-12

IMPLEMENTING RULES & REGULATIONS

Setting New Minimum Wage Rates for Private Sector
Employees/Workers in Region-I

WHEREAS, the Regional Tripartite Wages and Productivity Boards are mandated pursuant to Republic Act No. 6727 otherwise known as the Wage Rationalization Act to determine and fix minimum wage rates applicable in their regions;

WHEREAS, in the light of the changes in the socio-economic factors of the region, this Board declared motu proprio in its Resolution No. 04, series of 2007 dated July 18, 2007, to conduct a thorough and comprehensive study and review of the prevailing minimum wage levels;

WHEREAS, the Rosario Pepsi Employees and Workers Union filed a verified petition asking for an P18.00 per day across the board wage increase;

WHEREAS, this Board conducted a series of public hearings on wage issue in Pangasinan, La Union, Ilocos Sur, and Ilocos Norte on October 22, 2007, October 23, 2007, October 25, 2007, and October 26, 2007, respectively.

WHEREAS, the results of the Board’s study, and public hearings conducted disclose the need to adjust the amount of minimum wage levels to provide relief to the workers and enable them to cope with the rising costs of living brought about by the changes in the socio-economic factors without endangering the viability of business and industry;

WHEREAS, pursuant to NWPC Polity Guidelines No. 01, Series of 2005 (Policy Directions and Program Thrusts: 2006-2010), the Board further simplified the existing wage structures in the Region.

WHEREAS, coherent with the policy thrust to achieve higher levels of productivity as an approach for increasing worker’s wages above the minimum and to preserve gainful employment, there is therefore a need to strengthen the capacity of businesses to be competitive through productivity improvement and gain sharing mechanisms.

NOW THEREFORE, by virtue of the power and authority vested upon it by Republic Act. No. 6727, the Regional Tripartite Wages and Productivity Board-1 (RTWPB-1) hereby issues this Wage Order.

Section 1. NEW DAILY MINIMUM WAGE RATES

Upon the effectivity of this Wage Order, the daily minimum wage rates of workers and employees in the private sector shall be increased as follows:

Sec. 2. MINIMUM WAGE RATES APPLICABLE TO BUSINESS ESTABLISHMENTS WITH MULTIPLE BUSINESS ACTIVITIES:

The minimum wage rates applicable to business establishments performing multiple business activities not separately registered with any appropriate government agency shall be determined in accordance with their dominant business activity based on their gross revenue

Sec.  3. COVERAGE

All private sector workers and employees receiving the minimum wage rates in the Region are covered by the provisions of this Wage Order regardless of their position, designation or status of employment and irrespective of the method of their wages being paid.

Not covered by this Wage Order are household or domestic helpers, persons employed in the personal service of another including family drivers; and workers and employees of registered Barangay Micro Business Enterprises (BMBE) with Certificates of Authority pursuant to Republic Act 9178.

Sec.  4. BASIS OF MINIMUM WAGE

The minimum wage rates prescribed under this Order shall be for the normal working hours which shall not exceed eight (8) hours work a day.

Sec.  5. CREDITABLE WAGE INCREASE

a. If expressly provided and agreed upon in the Collective Bargaining Agreements, wage increases granted by employers within three (3) months prior to the effectivity of this Order shall be credited as compliance with the minimum wage rates prescribed herein.

b. Wage increases granted by non-unionized establishments within six (6) months prior to the effectivity of this Order shall also be credited as compliance therewith.

c. Anniversary wage increases provided in Collective Bargaining Agreements, merit wage increases and those resulting from their regularization or promotion of employees shall not be credited as compliance.

Sec.  6. WORKERS PAID BY RESULTS

All workers paid by results, including those who are paid on piecework, “takay”, “pakyaw” or task basis, shall be entitled to receive not less than the prescribed new minimum wage rates per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

Sec.  7. WAGES OF SPECIAL GROUPS OF WORKERS AND EMPLOYEES

Wages of apprentices and learners shall in no case be less than seventy five percent (75%) of the applicable minimum wage rates prescribed in this Order.

All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automatically modified insofar as their wage clauses are concerned to reflect the new prescribed wage rates.

All qualified handicapped workers shall receive the full amount of increase in this Order pursuant to R.A. 7277.

Sec.  8. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS

In the case of private educational institutions, the share of covered workers and employees in the increase in tuition fees for School Year 2007-2008 shall be considered as compliance with the applicable minimum wage rates prescribed herein. However, payment of any shortfall shall be given starting School Year 2008-2009.

Private Educational Institutions which have not increased their tuition fees for the School Year 2007-2008 may defer compliance with the provisions of this Wage Order until the beginning of School Year 2008-2009.

In any case, all Private Educational Institutions shall implement the minimum wage rates prescribed herein starting School Year 2008-2009 whether or not they will increase their tuition fees during the said school year.

Sec.  9. APPLICATION TO CONTRACTORS

In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed adjustments in the wage rates of the workers and employees shall be borne by the principals or clients of the construction/service contractors and the contracts shall be deemed amended accordingly. In the event, however, that the principal or client fails to pay the prescribed increase or new minimum wage rates, the construction/service contractor shall be jointly and severally liable with his principal or client.

Sec. 10. MOBILE AND BRANCH WORKERS/EMPLOYEES

The minimum wage rates of workers and employees, who by the nature of their work have to travel, shall be those that are applicable in the domicile or head office of the employer.

The minimum wage rates of workers and employees working in branches or agencies of establishments within or outside Region-I shall be those that are applicable in the place where they are stationed.

Sec.  11. TRANSFER OF WORKERS AND EMPLOYEES

The transfer of workers and employees from one region to another shall not diminish the wage rates being enjoyed by them prior to such transfer. The workers and employees transferred to other regions with higher wage rates shall be entitled to the minimum wage rate applicable therein.

Sec.  12. EXEMPTIONS

Upon application with and as determined by the Board in accordance with applicable Rules issued by the Commission, distressed establishments (except conditional exemption) as defined in the NWPC Guidelines No. 02, series of 2007 may be exempted from the coverage of this Order.

Sec.  13. DURATION AND EXTENT OF EXEMPTION

Establishments that applied for exemption and found qualified may be granted a partial or full exemption of one (1) year in accordance with the NWPC Guidelines No. 02, series of 2007.

Sec.  14. EFFECT OF APPLICATION FOR EXEMPTION

An application for exemption duly filed shall have the effect of deferring any action on any complaint for non-compliance with the Order until resolution of the application by the Regional Board.

In case the application for exemption is not approved, covered workers and employees of the applicant-establishment shall be paid the prescribed minimum wage rates under this Order plus one percent (1%) simple interest per month retroactive to the effectivity of this Order.

Sec.  15. APPEAL TO THE COMMISSION

Any party aggrieved by this Wage Order may file a verified appeal with the Commission through the Board within ten (10) calendar days from the publication of this Order.

Sec.  16. EFFECT OF FILING OF APPEAL

The filing of an appeal does not operate to stay this 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 of the corresponding increase to workers and employees affected by the Order in the event such Order is affirmed.

Sec.  17. EFFECTS ON EXISTING WAGE STRUCTURE

Where the application of the new minimum wage rates under this Order results in distortion of the wage structure within an establishment, the same shall be corrected in accordance with the procedure provided for under Art. 124 of the Labor Code as amended.

Sec.  18. COMPLAINTS FOR NON-COMPLIANCE

Complaints for non-compliance with this Order shall be filed with the Regional Office of the Department of Labor and Employment (DOLE-Region I) and shall be the subject of enforcement proceedings under Article 128 of the Labor Code, as amended, without prejudice to criminal prosecution which may be undertaken against those who fail to comply.

Sec.  19. NON-DIMINUTION OF BENEFITS

Nothing in this Order shall be construed to reduce any existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances, executive orders and/or under any contract or agreement between the workers/employees and employers.

Sec.  20. PENAL PROVISION

Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay the prescribed increase in this Order, shall be punished by a fine of not less than P25,000.00 nor more than P100,000.00 or imprisonment of not less than two (2) years nor more than four (4) years or both such fine and imprisonment at the discretion of the court pursuant to the provision of Sec. 12 of R.A. 6727, as amended by R.A. 8188.

Sec.  21. PROHIBITION AGAINST INJUNCTION

No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal or other entity against any proceedings before the Board.

Sec.  22. FREEDOM TO BARGAIN

This Order shall not be construed to prevent workers in particular firms or enterprises of industries from bargaining for higher wages with their respective employers.

Sec.  23. PRODUCTIVITY-BASED WAGES

To attain higher levels of productivity for competitiveness, to preserve and generate gainful employment and to augment the wages of workers/employees, business enterprises are strongly encouraged to adopt Productivity Improvement and Gain Sharing Programs.

Business establishments are likewise encouraged to avail of the technical assistance which this Board and/or the National Wages and Productivity Commission provides such as the ISTIV Productivity Improvement Program and other Productivity Improvement Schemes.

Sec.  24. REPORTING REQUIREMENT

Any person, company, corporation, partnership or any entity engaged in business shall submit a verified itemized listing of their labor component to the Board not later than 31 January 2008 and every year thereafter in accordance with the form prescribed by the Commission.

Sec.  25. REPEALING CLAUSE

All orders, issuances, rules and regulations, or parts thereof inconsistent with the provision of this Wage Order are hereby repealed, amended or modified accordingly.

Sec.  26. IMPLEMENTING RULES

The Board shall prepare the necessary rules to implement this Order subject to approval of the Secretary of Labor and Employment.

Sec.  27. SEPARABILITY CLAUSE

If, for any reason, any Sec. or provision of this Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid.

Sec.  28. EFFECTIVITY

This Wage Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation in the Region.

APPROVED this 19th day of November, San Fernando City, La Union, Philippines.