Republic of the
Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD - VI
Iloilo City
WAGE ORDER No. RB VI -15
IMPLEMENTING
RULES & REGULATIONS
PROVIDING FOR THE NEW MINIMUM WAGE RATES
WHEREAS,
the Regional Tripartite Wages and Productivity Board- Regional Board VI
- Western Visayas (RTWPB-VI) is mandated under R.A. 6727 (The Wage
Rationalization Act), to periodically assess the wage rates and conduct
continuing studies in the determination of the minimum wage rates
applicable in the region or
industry;
WHEREAS,
the Trade Union Congress of the Philippines (TUCP) filed on April 12,
2007 a petition for a Seventy-Five Pesos (P75.00) per day
across-the-board wage
increase;
WHEREAS,
after due notice to all concerned sectors, the RTWPB-VI conducted
consultations with labor and employers sectors on June 26 in Bacolod
City; July 3 in Iloilo City, July 4 in San Jose, Antique; July 10 in
Roxas City, July 11 in Kalibo, Aklan; and July 12 in Boracay, Malay,
Aklan. respectively, and a public hearing on August 29, 2007, in
Bacolod City, to determine the propriety of issuing a new wage order;
WHEREAS,
after a thorough evaluation of the existing socio-economic conditions
of the region, the RTWPB-VI determined the need to provide workers with
immediate relief, without impairing business viability by simplifying
the wage structure resulting to increases from P13.00 to P41.00
benefiting workers in the lower bracket;
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
programs.
NOW
THEREFORE, by virtue of the power and authority vested under
Republic Act No. 6727, the RTWPB-VI hereby issues this Wage Order.
Section
1. SIMPLIFICATION OF WAGE STRUCTURES. The wage structure
rationalization/simplification in the region pursuant to NWPC
Guidelines No. 01, Series of 2005 (Policy Directions and Program
Thrusts: 2006-2010) shall be effected in three (3) stages, as follows:
a) |
Upon effectivity of this Wage Order; |
b) |
On May 1, 2008; and |
c) |
On September 16, 2008. |
The
three (3) major industry classifications of Sugar Industry,
Non-Agriculture and Agriculture under Wage Order No. RBVI-14 shall be
reduced into two (2) which are the Non-Agriculture and Agriculture. The
details of the reclassification shall be provided for in the
Implementing Rules of this Wage Order. The increases will be effective
in three (3) installments for some sectors that have considerable
increases.
Sec. 2. NEW MINIMUM WAGE RATES.
a) Upon effectivity of this Wage
Order, the new minimum wage rates in the region are as follows:
INDUSTRY/SECTOR |
Under W.O. No. RBVI-14
|
Under
W.O. No. RBVI-1
5 |
Effective 05 Oct 2007 |
Effective 01 May 2008 |
Effective
15 Sept 2008 |
SUGAR
INDUSTRY |
Mills |
P235.00 |
P235.00 |
|
|
Agriculture Plantation
with capitalization of: |
More than P3 Million |
203.00 |
203.00 |
|
|
Not More than P3 Million |
185.00 |
195.00 |
203.00 |
|
Non-Plantation |
180.00 |
193.00 |
|
|
NON-AGRICULTURE |
(i.e.
Industrial/Commercial) |
|
|
|
|
With capitalization of: |
|
|
|
|
More than P3 Million |
222.00 |
235.00 |
|
|
More than P 1 Million but less than
P 3Million |
212.00 |
225.00 |
235.00 |
|
Not More than P 1 Million |
199.00 |
215.00 |
225.00 |
235.00 |
HOSPITALS |
222.00 |
235.00 |
|
|
COTTAGE/HANDICRAFT |
180.00 |
193.00 |
|
|
RETAIL/SERVICE |
Employing
more than 10 workers |
|
|
|
|
1. Highly
urbanized cities with the following
capitalization and
employment size: |
|
|
|
|
a. More than P 3 Million
employing: |
|
|
|
|
More
than 15 workers |
222.00 |
235.00 |
|
|
11-
15 workers |
212.00 |
225.00 |
235.00 |
|
b. More than P 1 Million but
not more than P3M |
203.00 |
215.00 |
225.00 |
235.00 |
c. Not More than P
1Million |
194.00 |
209.00 |
224.00 |
235.00 |
2. Component municipalities
and cities and with the
following capitalization: |
|
|
|
|
a. More than P3 Million |
208.00 |
218.00 |
228.00 |
235.00 |
b. More than P1 Million
but not more than P 3
Million |
203.00 |
215.00 |
225.00 |
235.00 |
c. Not More than P 1
Million |
194.00 |
209.00 |
224.00 |
235.00 |
Employing
not more than 10 workers |
180.00 |
193.00 |
|
|
AGRICULTURE |
A. Plantation |
|
|
|
|
1. With capitalization of more than P3 Million
&annual gross sales of: |
|
|
|
|
P5 Million or more |
203.00 |
203.00 |
|
|
Less than P5 Million |
199.00 |
203.00 |
|
|
2.
With capitalization of more than P1 Million
butnot more than P3 Million with
annual grosssales of: |
|
|
|
|
P5 Million or more |
199.00 |
203.00 |
|
|
Less than P5 Million |
185.00 |
195.00 |
203.00 |
|
3.
With capitalization of not more than P1
Million |
185.00 |
195.00 |
203.00 |
|
B. Non-Plantation |
180.00 |
193.00 |
|
|
b)
Upon full simplification to take effect on September 16, 2008, the
sector/industry classification with the corresponding minimum wage
rates shall be as follows:
Sector/Industry |
New Minimum Wage Rates |
I - Non-Agriculture / Industrial /
Commercial |
|
Employing
more than 10 workers |
P235.00 |
Employing
10 or less workers |
193.00 |
II - Agriculture Plantation |
|
Plantation
Non-Plantation |
203.00
193.00 |
Sec. 3. COVERAGE.
The wage increase prescribed in this Wage Order
shall apply to all minimum wage earners in the private sector in the
Region, regardless of their position, designation or status of
employment and irrespective of the method by which they 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 duly registered Barangay Micro Business Enterprises (BMBEs) with
Certificates of Authority pursuant to Republic Act 9178.
Sec. 4.
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.
5. APPLICATION TO CONTRACTORS. In the case of contracts for
construction projects and for security, janitorial and similar
services, the wage increase prescribed in this 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 principals or clients fail to pay the
prescribed wage rates, the construction/service contractor shall be
jointly and severally liable with his principal or client.
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.
Private
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.
In
any case, all private educational institutions shall implement the
increase prescribed herein starting School Year 2008-2009.
Sec. 7.
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 receive the prescribed increase per eight
(8) hours work a day, or a proportion thereof for working less than
eight (8) hours.
Sec. 8.
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 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
minimum wage rates.
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.
Sec. 9.
EXEMPTIONS. 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 Commission, the
following may be exempted from the applicability of this Order:
a. |
Distressed
establishments; |
b. |
Establishments
adversely affected by natural calamities; and |
c. |
New business enterprises. |
Sec. 10. APPLICATIONS FOR
EXEMPTION. Pursuant to the
rules
and regulations of the National Wages and Productivity Commission, all
applications for exemption from compliance with this Order shall be
filed within seventy-five (75) days from the date of publication of the
Rules Implementing this Order, with complete supporting documents as
specified in the Rules and as may be further required by the Board.
Failure to submit the required supporting documents within the
prescribed period will be sufficient basis for the dismissal of the
application for
exemption.
The
Board may grant a maximum period of exemption of one (1) year in
accordance with the NWPC Rules on Exemption, but in no case shall any
exemption exceed one (1) year from the effectivity of this Order.
Sec.
11. 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 with this Wage Order shall be
deferred pending its resolution.
In
the event that the application for exemption is not granted in
accordance with the Rules, the employees of the applicant firm shall
receive the mandated wage increase under this Order, plus one percent
(1%) interest per month retroactive to the effectivity of this Order.
Sec.
12. APPEAL TO THE COMMISSION. Any party aggrieved by this
order Wage Order may file an appeal to the Commission, through the
Board, in three (3) printed copies, not later than ten (10) days from
the publication of this Wage Order.
Sec.
13. CREDITABLE WAGE INCREASE. An increase 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, provided that an agreement to
this effect has been forged between the parties or a collective
bargaining agreement provision allowing creditability exists. In the
absence of such an agreement or provision in the CBA, any increase
granted by the employer shall not be credited as compliance with the
increase prescribed in this Order.
In
unorganized establishments, an increase granted by the employer within
five (5) months prior to the effectivity of this Order shall be
credited as compliance therewith.
In
case the increases given are less than the prescribed adjustment, the
employer shall pay the difference. Such increases shall not include
anniversary increases, merit wage increases and those resulting from
the regularization or promotion of employees.
Sec.
14. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application
of the increase prescribed in this Order results in distortions in the
wage structure within the establishment, it shall be corrected in
accordance with the procedure provided for under Article 124 of
Presidential Decree No. 442, as amended, otherwise known as the Labor
Code of the Philippines.
Sec.
15. 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, and shall be the subject of
enforcement proceedings under Articles 128 and 129 of the Labor Code,
as amended.
Sec.
16. PRODUCTIVITY AND OTHER PERFORMANCE INCENTIVE PROGRAMS. In
order to sustain rising levels of wages and enhance competitiveness,
labor and management as partners are encouraged to adopt productivity
improvement schemes that will improve the quality of life of workers
and in turn enable them to produce more and earn more, such as time and
motion studies, good housekeeping, quality circles, labor and
management cooperation as well as implement gain-sharing and other
performance incentive
programs.
Sec.
17. 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 and
employers.
Sec.
18. PROHIBITION AGAINST INJUCTION. 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.
19. 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. 20. REPORTING
REQUIREMENT. Any person, company, corporation,
partnership or any entity engaged in business shall submit a verified
report on their wage structure to the Board not later than January 31,
2008 and every year thereafter in accordance with the form prescribed
by the National Wages and Productivity Commission.
Sec.
21. PENAL PROVISION. Any employer who refuses or fails to
comply with this Order shall be subject to the penalties specified
under RA 6727, as amended under R.A. No. 8188.
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 any provision or part of this Wage
Order is declared unconstitutional, or in conflict with existing law,
the other provisions or parts thereof shall remain
valid.
Sec.
24. IMPLEMENTING RULES. The Regional Tripartite Wages and
Productivity Board-National Capital Region shall submit to the
Commission the necessary Rules and Regulations to implement this Order
for the approval of the Secretary of Labor and Employment not later
than ten (10) days from the publication of the Wage Order.
Sec.
25. EFFECTIVITY. This Order shall take effect fifteen (15)
days after its publication in a newspaper of general circulation.
APRROVED
.
Bacolod City for Iloilo City, Philippines, 12 September 2007.
(Sgd) HERNANE P. BRAZA
Workers' Representative |
(Sgd) JOHN PETER Z. MILLAN
Employers' Representative |
(Sgd) WENNIE G. SANCHO
Workers'
Representative
|
(Sgd)
LUIS R.
ESTRELLA
Employers' Representative |
(Absent) DOMINIC P. ABAD
Regional
Director, DTI
Vice-Chairperson |
(Absent)
ARTURO G. VALERO
Regional Director, NEDA
Vice-Chairperson |
(Sgd) AIDA M. ESTABILLO
Regional
Director, DOLE
Chairperson |
Published on
September
20, 2007 at Sun Star
Effectivity:
October 5, 2007.
|