of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
Regional Tripartite Wages and Productivity Board-Region XI
WAGE ORDER NO. RB XI -14
RULES & REGULATIONS
PROVIDING FOR AN ADDITIONAL COST OF LIVING ALLOWANCE
TO THE WORKERS IN DAVAO REGION
under Republic Act No. 6727, otherwise known as the Wage
Rationalization Act, which empowers the Regional Tripartite Wages and
Productivity Boards to conduct continuing studies of wage rates and to
periodically assess the prevailing economic conditions, the Regional
Tripartite Wages and Productivity Board-Region XI (RTWPB-XI) motu
proprio initiated a review of the existing minimum wage rates in the
RTWPB-XI conducted series of public hearings in Digos City, Tagum City
and Davao City on July 17, 18 and 19, 2007, respectively, and
consultations with labor and employer sectors of the different
industries in the region on July 24, 25 and 30, 2007 and August 8,
2007, to determine the propriety of issuing a new wage order;
the results of the studies, public hearings, consultations conducted
reveal that there is a need to grant relief to private sector workers
in Davao Region to help them cope with the rising cost of living
without impairing the productivity and viability of business and
industry in the region;
consistent with the government's policy of achieving higher level of
productivity to preserve and generate jobs, 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
THEREFORE, by virtue of the power and authority vested under
Republic Act No. 6727, otherwise known as the Wage Rationalization Act,
the Regional Board (RTWPB-XI) hereby issues this Wage Order:
Section 1. THE NEW DAILY MINIMUM WAGE
RATES. Upon the effectivity of
this Wage Order:
a) All minimum wage
earners in Davao Region shall receive an increase in their Cost of
Living Allowance in the amount of P10.00 per day in addition to the
P16.00 COLA under Wage Order No. RTWPB-XI-13.
b) The new daily minimum wage rates of covered workers in the private
sector in Davao Region shall be as follows:
Davao, Digos, Island
Garden of Samal,
Mati, Panabo, and Tagum
Davao del Norte, Davao del Sur, Davao Oriental,
and Compostela Valley
New Minimum Wage
New Minimum Wage
Plantation (i.e, more than 24 hectares
or employing at least 20 workers)
Employing more than 10 workers
Employing not more than 10 workers
2. COVERAGE. The prescribed wage rates under this Wage Order
shall apply to all workers and employees in the private sector
receiving the minimum wage in Davao Region, regardless of position,
designation or status of employment and irrespective of the method by
which their wages are paid. This Wage Order shall not cover household
or domestic helpers, family drivers, persons employed in the personal
service of another, and workers in registered Barangay Micro Business
Sec. 3. BASIS OF MINIMUM WAGE
minimum wage rates
prescribed under this Wage Order shall be for the normal working hours,
which shall not exceed eight (8) hours work a day.
Sec. 4. 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 the prescribed minimum wage rates
per eight (8) hours work a day, or a proportion thereof for working
less than eight (8) hours.
5. WAGES OF SPECIAL GROUPS OF WORKERS. 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 Wage Order.
recognized learnership and apprenticeship agreements entered into
before the effectivity of this Wage Order shall be considered
automatically modified insofar as their wage clauses are concerned to
reflect the new prescribed wage rates.
Sec. 6. 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 increase prescribed herein.
However, payment of any shortfall in the wage increase set forth herein
shall be covered starting School Year 2008-2009.
educational institutions which have not increased their tuition fees
for the School Year 2007-2008 may defer compliance with the increase
prescribed herein until the beginning of School Year 2008-2009.
any case, all private educational institutions shall implement the
increase herein starting School Year 2008-2009.
Sec. 7. APPLICATION TO CONTRACTORS. In
the case of contracts for
construction projects, and for security, janitorial and similar
services, the prescribed minimum wage rates in this Wage Order shall be
borne by the principals or clients of the construction/service
contractors, and the contract shall be deemed amended accordingly. In
the event, however, that the principal or client fails to pay the new
minimum wage rates, the construction/service contractor shall be
jointly and severally liable with his principal or client.
Sec. 8. 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 gainsharing 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. 9. EXEMPTION.
No exemption from compliance under this Wage
Order shall be allowed except those provided under Sec. 2 above.
Sec. 10. APPEAL TO THE
COMMISSION. Any party aggrieved by this Wage
Order may file a verified appeal with the National Wages and
Productivity Commission (NWPC) through the Regional Board within ten
(10) calendar days from the publication thereof.
11. EFFECT OF FILING OF APPEAL. The filing of the appeal does
not operate to stay this Wage Order unless the party appealing this
Wage Order shall file with the NWPC an undertaking with a surety or
sureties satisfactory to the NWPC for payment of the prescribed
increase to employees affected by this Wage Order in the event that the
same is affirmed.
Sec. 12. EFFECTS ON
EXISTING WAGE STRUCTURE. Where the application
of the increases in the wage rates under this Wage 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 of the Philippines, as amended.
Sec. 13. COMPLAINTS FOR NON-COMPLIANCE.
non-compliance with this Wage Order shall be filed with the Regional
Office of the Department of Labor and Employment (DOLE) 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.
14. NON-DIMINUTION OF BENEFITS. Nothing in this Wage 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 and
15. PENAL PROVISION. Any person, corporation, trust or firm,
partnership, association or entity which refuses or fails to pay the
prescribed wage rates in accordance with this Wage Order shall be
subject to the penal provisions under RA 6727, as amended by RA 8188.
Sec. 16. PROHIBITION
AGAINST INJUNCTION. No preliminary or
permanent injunction or temporary restraining order may be issued by
any court, tribunal or other entity against this Wage Order or any
proceedings before the Regional Board.
Sec. 17. FREEDOM TO BARGAIN.
This Wage Order shall not be construed
to prevent workers from bargaining for higher wages with their
Sec. 18. 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 Sec.
of R.A. 6727 in relation to Art. 124 of the Labor Code, as amended and
in the form as prescribed by the NWPC.
Sec. 19. REPEALING CLAUSE.
All orders, issuances, rules and
regulations, or parts thereof inconsistent with the provisions of this
Wage Order are hereby repealed, amended or modified accordingly.
Sec. 20. SEPARABILITY
CLAUSE. If for any reason, any Sec. or
provision of this Wage Order is declared unconstitutional or illegal,
the other provisions or parts hereof shall remain valid.
21. IMPLEMENTING RULES. The Regional Board shall prepare the
necessary rules to implement this Wage Order subject to the approval of
the Secretary of Labor and Employment.
Sec. 22. EFFECTIVITY.
This Wage Order shall take effect fifteen
(15) days after its publication in a newspaper of general circulation
in Davao Region.
this 21st day of August 2007 in Davao City, Philippines.
(Sgd.) PONCIANO M. LIGUTOM
DOLE-XI, Regional Director
(Sgd.) MERLY M. CRUZ
DTI-XI, Regional Director
(Sgd.) NICASIO ANGELO J. AGUSTIN
NEDA-XI, Regional Director
(Sgd.) RULFO V. ASIS
(Sgd.) BIENVENIDO D. CARIAGA
(Sgd.) JORGE G. ALEGARBES
(Sgd.) VIRGINIA T. CAMUS