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REGION X - NORTHERN MINDANAO
MINIMUM WAGE RATE
Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Region 10, Northern Mindanao


WAGE ORDER NO. RX - 13

IMPLEMENTING RULES & REGULATIONS

PROVIDING NEW MINIMUM WAGE RATES IN REGION X


WHEREAS, , under Republic Act No. 6727 or the Wage Rationalization Act, the Regional Tripartite Wages and Productivity Boards are mandated to determine and fix minimum wage rates in their respective regions;

WHEREAS, ALU-TUCP filed on April 27, 2007 a petition for a P75 per day across-the board wage increase;

WHEREAS, after the publication of a notice of public hearing and provincial consultations in July 2007, the Board conducted region-wide public hearings on August 31 & October 8, 2007 in Cagayan de Oro City and provincial consultations in the Provinces of Bukidnon, Misamis Occidental, Lanao del Norte, Camiguin and Eastern Misamis Oriental on August 15, 17, 24 & 30, 2007, respectively;

WHEREAS, the results of the public hearing, provincial consultations and the study of the Board on the different socio-economic factors such as the consumer price index, poverty threshold and family living wage among others, show a need to increase the minimum wage to cope with the cost of living without impairing the viability of business establishments;

WHEREAS, consistent with the government’s policy of achieving higher levels of productivity to promote economic growth and generate employment and to augment the income of workers, there is a need to build the capacity of business enterprises to be competitive through productivity improvement and gain sharing programs

NOW, THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727, the Regional Tripartite Wages and Productivity Board of Region 10 hereby issues this Wage Order:

Section 1. GRANT OF ADDITIONAL COST OF LIVING ALLOWANCE (COLA). Upon effectivity of this Wage Order all covered workers and employees in the private sector in Region 10 receiving the minimum wage under Wage Order No. RX-12 shall receive an additional daily Cost of Living Allowance of Ten Pesos (P10.00).

Sec.  2. THE NEW MINIMUM WAGE RATES. Effective November 16, 2007, the new minimum daily wage rates of covered workers and employees in the private sector in Region  X shall be as follows:

Classification
Non-Agriculture
Agriculture
Basic
COLA
Total
Basic
COLA
Total
Wage Category I
P218.00
P26.00
P244.00
P206.00
P26.00
P232.00
Wage Category II
P213.00
P26.00
P239.00
P201.00
P26.00
P227.00
Wage Category III
P208.00
P26.00
P234.00
P196.00
P26.00
P222.00
Wage Category IV
P203.00
P26.00
P229.00
P191.00
P26.00
P217.00

a.  Wage Category I - Cities of Cagayan de Oro and Iligan, and the Municipalities of Tagoloan, Villanueva and Jasaan;chanroblesvirtualawlibrary

b.  Wage Category II -  Cities of Malaybalay, Valencia, Gingoog, El Salvador and Ozamiz, and the Municipalities of Maramag, Quezon, and Manolo Fortich;chanroblesvirtualawlibrary

c.  Wage Category III - Cities of Oroquieta and Tangub, and the Municipalities of Lugait, Opol and Mambajao;chanroblesvirtualawlibrary

d.  Wage Category IV -  All other areas not covered under the above Categories;chanroblesvirtualawlibrary

e.  Wage Category  V  - The Sugar Agricultural Industry.

CATEGORY V. SUGAR AGRICULTURAL INDUSTRY. For agricultural workers in the Sugar Industry in Region 10, the applicable “Pakyaw Rates” regardless of geographical location are as follows:

ACTIVITY
RATE
A. Land preparation and Cultivation
1. Roamplow  
 a. Moldboard-labor component
P 341.00/ha.
 b. Animal Plowing
     b.1 Owned by planter
P 227.00/day
     b.2 Owned by worker
 excluding premium
rate of animal
* Normal Soil
P 1,485.00/ha.
* Coarse and Hilly
P 2,670.00/ha.
2. Harrowing (Karas) – labor Component
P 67.00/ha.
3. Planting basal including peeling
P 667.00/lacsa
4. Hauling cane points
 a. Loading only
P 88.00/lacsa
 b. Loading and Unloading
P 147.00/lacsa
5. Cutting cane points
 a. Sinsillo
P 444.00/lacsa
 b. Gupod
P 370.00/lacsa
6. Peeling
P 147.00/lacsa
7. Cutting cane points with peeling
P 742.00/lacsa
8. Fertilizing
 a. Tagad
P 59.00/bag
 b. Bubod
P 47.00/bag
9. Weeding
 a. High density
P 1,485.00/ha.
 b. Medium density
P 890.00/ha.
 c. Low density
P 594.00/ha.
10. Hilling-up (1meter distance between rows)
P 227.00/pass /ha.
11. Harvesting (cutting and Loading zero trash)
P 147.00/ton
B. Ratoon
1. Peeling and replanting
P 742.00/lacsa
2. Trash scattering, burning and cutting stump
P 594.00/ha.

Sec.  3. COVERAGE. The wage increase prescribed herein shall apply to all minimum wage earners in the private sector in the region, regardless of their position, designation or status and irrespective of the method by which their wages are paid.cralaw

This Wage Order shall not cover household or domestic helpers, persons in the personal service of another, including family drivers, and workers in registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority.cralaw

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.cralaw

Sec.  5. PRODUCTIVITY BASED WAGES. In order to sustain rising levels of wages and enhance competitiveness, businesses are encouraged to adopt productivity improvement schemes such as time and motion studies, good housekeeping, quality circles, labor management cooperation as well as implement gain-sharing programs. Accordingly, the Board shall provide the necessary studies and technical assistance pursuant to Republic Act No. 6971 or the "Productivity Incentives Act of 1990.”

Sec.  6. CREDITABLE WAGE INCREASE. All wage increases granted to  workers within three (3) months prior to the effectivity of this Wage Order shall be credited as compliance with this Order.  Where such increases are less than the prescribed adjustment, the employer shall pay the difference.cralaw

Such creditable increases shall not include anniversary wage increases, merit increases and those resulting from the regularization or promotion of employees.cralaw

Sec.  7. 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 minimum wage rates per eight hours of work a day, or a proportion thereof for work less than eight (8) hours.cralaw

Sec.  8. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of apprentices and earners shall in no case be less than seventy-five percent (75%) of the applicable minimum wage rates prescribed in this Order.cralaw

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.cralaw

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

Sec.  9. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the case of private educational institutions, the share of covered workers and employees in the increase of tuition fees for school year 2007-2008 shall be considered as compliance with the increases prescribed herein. However, payment of any shortfall in the allowance set forth herein shall be covered starting school year 2008-2009.cralaw

Private educational institutions which have not increased their tuition fees for school year 2007-2008 may defer compliance with the provisions of this Wage Order until the beginning of school year 2008-2009.cralaw

In any case, all private educational institutions shall implement the increase prescribed herein starting school year 2008-2009.cralaw

Sec.  10. APPLICATION TO CONTRACTORS. In the case of contracts for construction projects, security, janitorial and similar services, the prescribed increases in the wage rates shall be borne by the principals or clients of the construction/service contractors and the contract shall be deemed amended accordingly.cralaw

In the event, however, that the principal or client fails to pay the prescribed increase, the construction/service contractor shall be jointly and severally liable with his principal or client.cralaw

Sec.  11. EXEMPTIONS. Upon application with and as determined by the Board in accordance with the National Wages and Productivity Commission Guidelines No. 02, Series of 2007 (The Amended Rules on Exemption), the following maybe exempted from the applicability of this Wage Order:

a.  Retail/Service establishment employing not more than ten (10)  Workers;chanroblesvirtualawlibrary

b.  Establishments whose total assets, including those arising from loans, but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, are not more than Three Million Pesos (P= 3,000,000.00);chanroblesvirtualawlibrary

c.  Distressed establishment;chanroblesvirtualawlibrary

d.  New business enterprises (NBEs);chanroblesvirtualawlibrary

e.  Establishments adversely affected by natural calamities.

Sec.  12. EFFECT OF APPLICATION  FOR EXEMPTION. An application for exemption duly filed shall have the effect of deferring any action in any complaint for non-compliance with the Order until resolution of the application by the Regional Board.cralaw

In case the application for exemption is not approved, covered employees/workers of the applicant-establishment shall be paid the mandated wage increase under this Wage Order plus one percent (1%) interest per month retroactive to the effectivity of this Wage Order.cralaw

Sec.  13. 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.cralaw

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 of the corresponding increase to the employees affected by the Order in the event such Order is affirmed.cralaw

Sec.  14. EFFECTS ON EXISTING WAGE STRUCTURE OR WAGE DISTORTION. Where the application of the increase in the 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 Article 124 of the Labor Code, as amended.cralaw

Sec.  15. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with this Wage Order shall be filed before the Regional Office of the Department of Labor and Employment (DOLE) or any of its Provincial Extension Offices and shall be the subject of enforcement proceedings under Article 128 of the Labor Code, as amended, without prejudice to criminal prosecution which maybe undertaken against those who fail to comply.cralaw

Sec.  16. NON-DIMINUTION OF BENEFITS. Nothing in this Wage Order shall be construed to reduce any existing wage rates, allowances and benefits in any form under existing laws, decrees, issuances, executive orders and/or under any contract or agreement between the workers and employers.cralaw

Sec.  17. PENAL PROVISION. Any person, entity or employer who refuses or fails to pay the prescribed minimum wage in accordance with this Order shall be subject to the penal provisions under RA 6727, as amended by RA 8188.cralaw

Sec.  18. 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.cralaw

Sec.  19. FREEDOM TO BARGAIN. This Order shall not be construed to prevent workers in particular firms or enterprises of industries from bargaining for higher wages and/or benefits with their respective employers.cralaw

Sec.  20. 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 January 31, 2008 and every year thereafter in accordance with the form prescribed by the Commission.cralaw

Sec.  21. 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.cralaw

Sec.  22. SEPARABILITY CLAUSE. If, for any reason, any Sec.  or provision of this Wage Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid.cralaw

Sec.  23. IMPLEMENTING RULES. The Board shall prepare the necessary rules to implement this Wage Order subject to the approval of the Secretary of Labor and Employment.cralaw

Sec.  24. EFFECTIVITY. This Wage Order shall take effect on November 16, 2007, fifteen  (15) days after its publication (on November 1, 2007)  in a newspaper of general circulation in the region.

APPROVED, October 24, 2007, Cagayan de Oro City, Philippines.
(Sgd.) ARSENIO L. SEBASTIAN III
Management Representative

(Sgd.) JOSE B. ARES
Labor Representative
(Sgd.) PRUDENCIO T. PLAZA, JR.
Management Representative

(Sgd.) LORENZO C. TONGCO
Labor Representative

(Sgd.) CASIMIRA V. BALANDRA
Vice-Chairperson, NEDA-X

(Sgd.) ALICIA V. EUSEÑA
Vice-Chairperson, DTI-X

(Sgd.) ALAN M. MACARAYA
Chairperson, RTWPB-X and
Regional Director, DOLE-X


Published on November 1, 2007 at Sun Star.
Effectivity: November 16, 2007.

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