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WAGE ORDER NO. RB XII-14

IMPLEMENTING RULES & REGULATIONS

PROVIDING FOR AN ADDITIONAL COST OF LIVING ALLOWANCE (COLA) TO THE PRIVATE SECTOR WORKERS IN REGION XII

WHEREAS, under R.A. No. 6727, otherwise known as the Wage Rationalization Act, the Regional Tripartite Wages and Productivity Board - Region XII (RTWPB XII), is mandated to periodically assess the wage rates, and to conduct continuing studies in the determination of the minimum wage rates applicable in the region, provinces or industries;

WHEREAS, the RTWPB XII has resolved to review motu proprio the existing minimum wage rates in the region;

WHEREAS, the RTWPB XII, after giving due notice to all concerned sectors, conducted public consultations and public hearings on August 15 and 16, 2007 in Tacurong City and General Santos City, respectively; to determine the propriety of issuing a new wage order;

WHEREAS, the results of the studies, public consultations, public hearings, and deliberations revealed that there is the need to grant relief allowance to minimum wage workers in the private sector in Region XII without impairing the productivity and viability of business and industries in the region;

WHEREAS, consistent with the government’s policy of achieving higher levels 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 programs;

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

Section 1. Grant of Additional COLA. Upon the effectivity of this Wage Order, the minimum wage workers in the private sector in Region XII shall receive an additional Cost of Living Allowance (COLA), as follows:

a. Five Pesos (P5.00) per day for those in the non-agriculture industry/sector;

b. Four Pesos (P4.00) per day for those in the agriculture industry/sector; and,

c. Three Pesos (P3.00) per day for those in the retail/service establishments.

Sec.  2. The New Daily Minimum Wage Rates. Upon the effectivity of this Wage Order, the new daily minimum wage rates in Region XII shall be as follows:

Sec.  3. Coverage. The wage rates prescribed under this Wage Order shall apply to all minimum wage workers/employees in the private sector in Region XII, regardless of their 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; persons in the personal service of another, including family drivers; and, workers of registered Barangay Micro Business Enterprises (BMBEs).

Sec.  4. Basis of Minimum Wage Rates. The minimum wage rates prescribed under this Wage Order shall be for the normal working hours, which shall not exceed eight (8) hours of work a day.

Sec.  5. Creditable Wage Increase/Allowances. Wage increases granted by an employer shall be credited as compliance with the prescribed increases set forth herein. In case the increases given are less than the prescribed minimum wage rates, the employer shall pay the difference.

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

Sec.  6. Productivity-Based Wages. In order to sustain rising levels of wages and enhance competitiveness, businesses are strongly 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.  7. 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 prescribed minimum wage rates under this Wage Order. However, payment of any shortfall in the minimum wage rates set forth herein shall be covered 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 School Year 2008-2009.

In any case, all private educational institutions shall implement the minimum wage rates prescribed herein starting School Year 2008-2009.

Sec.  8. Application to Contractors. In case of contracts for construction projects and for security, janitorial and similar services, the increase in the prescribed minimum wage rates under this Wage Order shall be borne by the principal or client of the contractor and the contract shall be deemed amended accordingly as mandated under the Labor Code.

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

Sec.  9. Workers Paid By Result. All workers paid by result, including those who are paid on piecework, “takay,” “pakyaw” or task basis, shall be entitled to not less than the prescribed minimum wage rates per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

Sec.  10. 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. All qualified handicapped workers shall receive the full amount of the minimum wage rate prescribed herein pursuant to Republic Act No. 7277, otherwise known as the Magna Carta for Disabled Persons.

All 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 minimum wage rates.

Sec.  11. Exemptions. The following may be exempted from the applicability of this Wage Order upon application with and as determined by the Board, based on documentation and other requirements in accordance with applicable rules and regulations issued by the National Wages and Productivity Commission (Commission):

a. Establishments with 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, of not more than three million pesos (P3,000,000.00), and which establishments are not registered as Barangay Micro Business Enterprises (BMBEs), and

b. Distressed Establishments.

Sec.  12. Effect of Application for Exemption. Whenever an application for exemption has been duly filed with the Board, action on any complaint for alleged non-compliance thereto shall be deferred pending its resolution. In the event that the application for exemption is not granted, the applicant firm shall pay the appropriate compensation due to the covered workers as provided for in this Wage Order plus interest of one percent (1%) per month, retroactive from the effectivity of this Wage Order.

Sec.  13. Effects on Existing Wage Structure. Where the application of the increases or adjustments in the prescribed minimum wages rates under this Wage Order results in distortion in 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.  14. Freedom to Bargain. This Wage Order shall not be construed to prevent workers from bargaining for higher wages with their respective employers.

Sec.  15. Complaints for Non-Compliance. Complaints for 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 of the Philippines, as amended, without prejudice to criminal prosecution, which may be undertaken against those who fail to comply.

Sec.  16. Non Diminution of Benefits. Nothing in this Wage Order shall be construed to reduce any existing wage rate, allowance and benefit of any form under existing laws, decrees, issuances, and executive orders or under any contract or agreement between workers and employers.

Sec.  17. Appeal to the Commission. Any party aggrieved by this Wage Order may file a verified appeal with the National Wages and Productivity Commission through the Board within ten (10) calendar days from the publication of this Wage Order.

Sec.  18. Effects 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 Commission an undertaking with a surety or sureties satisfactory to the Commission for payment of the corresponding wage adjustment to employees affected by this Wage Order in the event that this Wage Order is affirmed.

Sec.  19. Penal Provision. Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the prescribed minimum wage rates in accordance with this Wage Order shall be subject to the penal provisions under RA 6727, as amended by RA 8188.

Sec.  20. 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.  21. 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 as prescribed by the Commission.

Sec.  22. 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.  23. 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.

Sec.  24. Implementing Rules and Regulations. The Board shall prepare the necessary rules and regulations to implement this Wage Order subject to the approval of the Secretary of Labor and Employment.

Sec.  25. Effectivity. This Wage Order shall take effect fifteen (15) days after its publication in a local newspaper of general circulation in the region.

APPROVED: 11 September 2007, Koronadal City, Philippines.

Published on September 23, 2007 at Sun Star Balita
Effectivity: October 8, 2007.