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Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
National Wages and Productivity Commission
Regional Tripartite Wages and Productivity Board No. IV-B (MIMAROPA)
Quezon City

WAGE ORDER NO. IV-B-03

IMPLEMENTING RULES & REGULATIOS

SETTING NEW MINIMUM WAGE RATES IN REGION IV-B

 
WHEREAS , under  R.A. 6727 (Wage Rationalization Act), the Regional Tripartite Wages and Productivity Board – IV-B (RTWPB-MIMAROPA) is mandated by law to rationalize wage fixing in the Region taking into account the prevailing economic condition affecting the cost of living of wage earners, the sustainable viability of business and industry, and the imperatives of socio-economic development of the region;

WHEREAS, the Trade Union Congress of the Philippines (TUCP) filed on May 21, 2007 a petition for a Ninety-Three Pesos (P 93.00) per day across-the-board wage increase;

WHEREAS, after due notice to all concerned sectors in all provinces  of the region, pursuant to the Notice of Public Hearing published in the 23th August 2007 issue of The Manila Standard Today, the RTWPB-IVB conducted provincial consultations and public hearings in the Highly Urbanized City of Puerto Princesa and City of Calapan, Province of Oriental Mindoro on September 6, 2007 and September 13, 2007, respectively;

WHEREAS, the Board after a series of wage deliberation meetings held on September 13, 17, 25, and October 2 and October 11, 2007 agreed to provide minimum wage increase for workers in the region and to assess its existing structure towards its simplification;

NOW, THEREFORE, the REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD, REGION IV-B, by virtue of the power granted to it under Republic Act No. 6727, otherwise known as the Wage Rationalization Act, hereby issues this Wage Order:

Section 1. NEW MINIMUM WAGE RATES:  Upon effectivity of this Wage Order, the new daily minimum wage rates in MIMAROPA shall be as follows:

The minimum wage workers under the categories of Non-Agriculture and Cottage and Micro Enterprises in San Jose, Occidental Mindoro and Sta. Cruz, Marinduque receiving the daily minimum wage rates of P 223.00 and P 175.00, respectively, under Wage Order No. IVB-02, shall receive the daily minimum wage prescribed in this Order for the categories of Non-Agriculture and Cottage and Micro Enterprises, respectively.

Sec. 2. COVERAGE. The new minimum wage rates prescribed in this Order shall apply to all covered workers and employees in the private sector in the region, regardless of their position, designation or status of employment and irrespective of  the method by which their wages are paid.

This Order shall not apply to household or domestic helpers, including family drivers and persons in the personal service of another and workers of registered Barangay Micro-Business Enterprises with Certificate of Authority, pursuant to R.A. 9178.

Sec. 3. BASIS OF MINIMUM WAGE RATES .The minimum wage rates prescribed under this Order shall be for the normal working hours which shall not exceed eight (8) hours of work a day.

Sec. 4. APPLICATION FOR 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 rate for eight (8) normal working hours a day, or a portion thereof for working less than eight (8) hours.

Sec.  5. APPLICATION FOR SPECIAL GROUPS OF WORKERS.  Apprentices and learners shall receive not less than seventy five (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.     

Sec.  6. PRODUCTIVITY AND OTHER PERFORMANCE INCENTIVE PROGRAMS. In order to sustain rising levels of wages and enhance competitiveness, businesses are encouraged to adopt productivity improvement, schemes such as good housekeeping, quality circles, labor management cooperation, time and motion studies, as well as implement productivity improvement programs and 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 minimum wage rates prescribed in this Order.  However, payment of any shortfall in the minimum wage rates set forth in the Order shall be covered starting School Year 2008-2009.

Private educational institutions, which did not increase their tuition fees for the School Year 2007-2008, may defer compliance with the provisions of this Order until School Year 2008-2009.

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

Sec.  8. APPLICATION TO CONTRACTORS.In the case of contracts for construction projects   and   for  security,  janitorial  and  similar  services,  the prescribed minimum wage rates for covered workers shall be borne by the principal or clients of the construction/service contractors and the contract shall be deemed amended accordingly. 

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

Sec.  9. EXEMPTION.   This Wage Order shall not allow   exemption from compliance except in case of establishments adversely affected by natural calamities.

Sec. 10.  EFFECT OF APPLICATION FOR EXEMPTION FILED BY ESTABLISHMENTS ADVERSELY AFFECTED BY NATURAL CALAMITIES. Whenever an application for exemption is filed with the Board by the establishments adversely affected by natural calamities, action on any complaint for non-compliance with this Order shall be deferred pending resolution of the said application.

If the application for exemption is not granted, the employees of the applicant firm shall receive the appropriate compensation due them as provided for in this Order plus one percent (1%) interest a month retroactive to the effectivity of this Order.

Sec.  11. APPEAL TO THE COMMISSION.   Any party aggrieved by the 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.  12.  EFFECT OF FILING AN 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 of the corresponding increase to employees affected by the Order, in the event such Order is affirmed;

Sec.  13. CREDITABLE WAGE INCREASE.  Wage increases granted by an employer in an organized establishment within three (3) months prior to the effectivity of this Order shall be credited as compliance with the prescribed increase set forth herein, if expressly provided for and agreed upon in a collective bargaining agreement. 

In unorganized establishments, wage increases granted by the employer within three (3) months prior to the effectivity of this Order shall be credited as compliance therewith. 

If such increases are less than the prescribed minimum wage increase herein, the employer shall pay the difference.  Such increases shall not include anniversary wage increases, merit wage increases and those resulting from the regularization or promotion of employees.

Sec. 14.  EFFECT ON EXISTING WAGE STRUCTURE. Where the application of the wage increases prescribed in this Order results in distortion in the wage structure within the establishment, it shall be corrected in accordance with the procedure under Article 124 of the Labor Code, as amended.

Sec. 15. COMPLAINTS FROM NON-COMPLIANCE.  Complaints from non-compliance with the 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 Labor Code, 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 Order shall be construed to reduce any existing wage rates, allowances or other benefits under existing laws, decrees, issuances and executive orders and/or under any contract or agreement between workers and employers.

Sec.  17. FREEDOM TO BARGAIN. This Order shall not be construed to prevent workers in particular firms or enterprises or industries from bargaining for higher wages with their respective employers.

Sec. 18. PENAL PROVISION. Any employer who refuses or fails to pay the minimum wage rate prescribed in this Order shall be subject to the penalties imposed under R.A. 6727, as amended by R.A. 8188.

Sec.  19. 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.

Section 20. REPEALING CLAUSE. All orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this Wage Order are hereby repealed or modified accordingly.

Section 21. SEPARABILITY CLAUSE. If for any reason, any section or provision of this Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid.

Section 22.  IMPLEMENTING RULES The Regional Board shall prepare the implementing rules of this Order subject to the approval of the Secretary of Labor and Employment.

Section 23.  EFFECTIVITY. This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.

Approved this 11th day of October 2007   in Quezon City, Philippines.

    *  Wage Increase not sufficient.
    **  Hindi makatotohanan ang increase na ito.

Published on November 10, 2007 at Manila Standard
Effectivity: November 25, 2007.