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Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Region VII, Central Visayas

RULES IMPLEMENTING WAGE ORDER NO. ROVII-13

Pursuant to Section 6, Rule IV of the NWPC Revised Rules of Procedure on Minimum Wage Fixing and Section 22 of Wage Order No. ROVII-13, the following Rules are hereby issued for guidance and compliance by all concerned.cralaw:red

Rule I
General Provisions

Section 1. This Rules shall be known as the “Rules Implementing Wage Order No. ROVII-13”.cralaw:red

Sec.  2. Definition of Terms. As used in this rules:

a) “ORDER”means Wage Order No. ROVII-13;

b) “COMMISSION” refers to the National Wages and Productivity Commission;

c) “BOARD” means the Regional Tripartite Wages and Productivity Board, Region VII;

d) “DEPARTMENT” means the Department of Labor and Employment;

e) “REGION VII” is the geographic area in Central Visayas covering the Provinces of Cebu, Bohol, Negros Oriental and Siquijor and its component cities;

f) “AGRICULTURE” refers to farming in all its branches and among others, include the cultivation and tillage of the soil, production, cultivation, growing and harvesting of any agricultural and horticultural commodities, dairying, raising of livestock or poultry, the culture of fish and other aquatic products in farms or ponds, and any activities performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, but does not include the manufacturing and/or processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm products;

g) “BARANGAY MICRO-BUSINESS ENTERPRISE (BMBE)” refers to any registered business entity or enterprise granted a Certificate of Authority pursuant to Republic Act 9178;

h) “CLASS A” refers to the Cities of Carcar, Cebu, Danao, Lapulapu, Mandaue, Naga and Talisay and the Municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando or (expanded Metro Cebu);

i) “CLASS B” refers to the Cities of Toledo and Bogo and the rest of the municipalities in the Province of Cebu except the municipalities in the Islands of Bantayan and Camotes;

j) “CLASS C” refers to the cities and municipalities in the Provinces of Bohol and Negros Oriental;

k) “CLASS D” refers to the municipalities in the Province of Siquijor and municipalities in the Islands of Bantayan and Camotes.

Rule II
Wage Increase

Section  1. Amount and Effectivity of Increase. Upon effectivity of this Wage Order, the daily minimum wage rates of all private workers and employees in the Non-Agricultural and Agricultural sector except Sugar and Sugar Mills in the region shall be increased by Nine Pesos (P9.00) per day for Class A areas, and Five Pesos (P5.00) per day for Class B, Class C areas and Class D areas.

Sec.   2. Application to Sugar Industry. Upon effectivity of this Order, the daily minimum wage rates of workers in Agriculture (Sugar) and Sugar Mills in all areas shall be increased by Five (P5.00) per day.

Sec.   3. Coverage.  a). The wage increase prescribed in the Order shall apply to all private sector minimum wage workers and employees in the Region whether agricultural or non-agricultural, regardless of their position, designation, or status and irrespective of the method bywhich their wages are paid.

b). Not covered from the provisions of the Order are household or domestic helpers, workers employed in the personal service of another, including family drivers and workers of duly registered Barangay Micro-Business Enterprises with Certificates of Authority.

Sec.  4. New Minimum Wage Rates.

a) The new daily minimumwage rate in the region for each area classificationincluding agriculture sugar and sugar millsshall be as follows:

b). Wages of all workers and employees whose rates are less than the prescribed minimum wage rates pursuant to Sections 1 and 2 of the Order shall be adjusted accordingly.

Sec.  5. Basis of Minimum Wage Rates. The minimum wage rates prescribed herein shall be for the normal working hours, which shall not exceed eight (8) hours work per day.cralaw:red

Sec.  6. Application to Private Educational Institutions.

a) Inthe case of private educational institutions,the share of covered workers and employeein the increase in tuition fees for SchoolYear 2007-2008 shall be considered as compliancewith the increase prescribed herein.

However,payment of any shortfall in the wage increaseset forth herein shall be covered startingSchool Year 2008-2009.

b) Privateeducational institutions which have not increasedtheir tuition fees for the School Year 2007-2008 may defer compliance with the increase prescribedherein until the beginning of School Year2008-2009.

c) In any case,private educational institutions shall implement the increase herein starting School Year 2008-2009.

Sec.  7. Application to Contractors. Inthe case of contracts for construction projectsand for security, janitorial services, theprescribed wage increases shall be borne bythe principals or clients of the construction/servicecontractors and the contract shall be deemedamended accordingly. In the event, however,that the principal or client fails to paythe prescribed wage rates, the construction/servicecontractor shall be jointly and severallyliable with his principal or client.

Sec.  8. Workers Paid by Results.

a). All workers paid by results,including those who are paid on piecework,takay, pakyaw, or task basis, shall receivenot less than the applicable minimum wagerates prescribed under the Order for the normalworking hours which shall not exceed eight(8) hours work a day, or a proportion thereoffor work of less than the normal working hours.

b). The wagerates of workers who are paid by results shallcontinue to be established in accordance withArticle 101 of the Labor Code, as amendedand its implementing rules and regulations.

c). The adjustedminimum wage rates for workers paid by resultsshall be computed in accordance with the followingsteps:

1. Amount of increase in AMW*
     ------------------------------------   X 100 = Percent increase;
      Previous AMW

2. Existing rate/piece X Percent increase= Increase in rate/piece.

3. Existing rate/piece + Increase in rate/piece = Adjusted rate/piece

   * Where AMWis the applicable minimum wage rate.

Sec.  9. Wages of Special Groups of Workers.

a) Wages ofapprentices and learners shall in no casebe less than seventy-five percent (75%) ofthe applicable minimum wage rates prescribed in the Order.

b) All recognized learnership and apprenticeship agreements entered into before the effectivity of theOrder shall be considered as automatically modified insofar as their wage clauses are concerned to reflect the adjustments prescribed under the Order.

c) All qualified handicapped workers shall receive the full amount of increase in this Order pursuant to R.A. 6727.

Sec.  10. Suggested Formulae in Determining the Equivalent Monthly Regional Minimum Wage Rates. Without prejudice to existing company practices, agreements or policies, the following formulae may be used in determining the Estimated Equivalent Monthly Rate (EEMR) of employees:

Sec.  11. Mobile and Branch Workers.

a) The prescribedminimum wage rates of workers, who by natureof their work have to travel, shall be thoseapplicable in the domicile or head officeof the employer.

b) The minimum wage rates of workers working in branches or agencies of establishments within the Region shall be those applicable in the place wherethey are stationed.

Sec.  12. Transfer of Personnel. The transfer of personnel to areas outside the Region shall not be a valid ground for the reduction of the wage rates being enjoyed by the workers prior to such transfer. The workers transferred to other regions with higher wage rates shall be entitled to the minimum wage rate applicable therein.

Sec.  13. Appeal to the Commission. Any party aggrieved by the Wage Order may file an appeal with the Commission through the Board within ten (10) calendar days from the publication of the Order. The Commission shall decide the appeal within sixty (60) calendar days from the date of filing. The appeal shall be accompanied by a memorandum of appeal which shall state the grounds relied upon and the arguments in support of the appeal.

Sec.  14. Effect of 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 to employees affected by the Order of the corresponding increase, in the event such Order is affirmed.

Rule III
Exemption

Section  1. No Exemption. No exemption from compliance with this Wage Order shall be allowed.

Rule IV
Special Provisions

Section 1. Effect on Existing Wage Structure. Should any dispute arise as a result of wage distortion, the employer and the union shall negotiate to correct the distortions through the grievance procedure under their collective bargaining agreement, and if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing, the voluntary arbitrator shall decide such dispute or panel of voluntary arbitrators within ten (10) calendar days from the time said dispute shall have been referred to voluntary arbitration.

In cases where there are no collective bargaining agreements or recognized labor unions, the employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and if it remains unresolved after ten (10) calendar days of conciliation, the same shall be referred to the appropriate branch of the National Labor Relations Commission (NLRC). The NLRC shall conduct continuous hearings and decide the dispute within twenty (20) calendar days from the time said dispute is submitted for compulsory arbitration.

The pendency of a dispute arising from wage distortion shall not in any way delay the applicability of any increase prescribed in the Order.

Sec.  2. Complaints for Non-Compliance. Complaints for non-compliance with the Order shall be filed with the Regional Office of the Department having jurisdiction over the workplace and shall be the subject of enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended.

Sec.  3. Conduct of Inspection by the Department. The Department shall conduct inspections of establishments, as often as necessary, to determine whether the workers are paid the prescribed wage rates and other benefits granted by law or any Wage Order.

In the conduct of inspection in unionized companies, Department inspectors shall always be accompanied by the president or other responsible officer of the recognized bargaining unit or of any interested union. In the case of non-unionized establishments, a worker representing the workers in the said company will accompany the inspector.

The workers’ representative shall have the right to submit his own findings to the Department and to testify on the same if he does not concur with the findings of the labor inspector.

Sec.  4. Non-diminution of Benefits. Nothing in the Order and in this Rule 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 the employers.

Sec.  5. Productivity-Based Wages. In order to sustain rising level 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 Regional Board shall provide the necessary studies and technical assistance pursuant to RA 6971, the Productivity Incentives Act of 1990.

Sec.  6. Penal Provision. Any entity that refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Order shall be punished in accordance with the provisions of Sec. 12, Art 127 of RA 6727 as amended by RA 8188, which providesas follows:

"Sec. 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Act shall be punished by a fine not less than Twenty-five thousand pesos (P25,000) nor more than One hundred thousand pesos (P100,000) or imprisonment of not less than two (2) years nor more than four (4) years or both such fine and imprisonment at the discretion of the court: Provided, that any person convicted under this Act shall not be entitled to the benefits provided for under the Probation Law.

"The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: Provided, that payment of indemnity shall not absolve the employer from the criminal liability imposed under this Act.

"If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed upon the entity’s responsible officers, including but not limited to the president, vice-president, chief executive officer, general manager, managing directoror partner."

Sec.  7. 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 Commission or Boards.cralaw:red

Sec.  8. Freedom to Bargain. The Order shall not be construed to prevent workers in particular firms or enterprises of industries from bargaining for higher wages and flexible working arrangements with their respective employers.cralaw:red

Sec.  9. Reporting Requirements. 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:red

Sec.  10. Repealing Clause. All orders, issuances, rules and regulations on wages, or parts thereof inconsistent with the provisions of the Wage Order and this Rules are hereby repealed, amended or modified accordingly.cralaw:red

Sec.  11. Separability Clause. If any provision or part of the Order and this Rule, or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of the Order and this Rules or the application of such provision or part thereof to other persons or circumstances shall not be affected thereby.cralaw:red

Sec.  12. Effectivity of Rules. This rule shall take effect on November 11, 2007.cralaw:red

APPROVED: Done in the City of Cebu, Philippines, this 30th day of September 2007.