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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

WAGE ORDER NO. ROVII-13

IMPLEMENTING RULES & REGULATIONS

ESTABLISHING NEW MINIMUM WAGE RATES

WHEREAS, Republic Act 6727 otherwise known as the Wage Rationalization Act of 1989 mandated the Regional Tripartite Wages and Productivity Boards to determine and fix the minimum wages in their respective Regions;

WHEREAS, on 27 April 2007 and July 4, 2007, the Alliance of Progressive Labor (APL), Shemberg Employees Independent Union, Employee’s Association of Robinson’s Supermarket, the Public Interest Advocacy and Litigation Office (PIALO) thru its Presidents, and the Associated Labor Union - Trade Union Congress of the Philippines (ALU-TUCP), filed with the Regional Tripartite Wages and Productivity Board-Regional Office No. 7, petitions for a P75.00 and P 136.20 across-the-board increase, respectively, in the minimum wages of workers in the Region;

WHEREAS, the Board after the publication of said petitions and giving notice to all concerned sectors, conducted a region-wide public hearing on July 6, 2007 in Cebu City;

WHEREAS, as a result of its periodic and continuous review on the socio economic factors, the Board noted an upward movement in the consumer price index (CPI) as a result of continuous changes in the prices of basic commodities from 142.6 in May 2006 to 146.4 in August 2007 or an increase of 2.66%;

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 and gain sharing program;

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

Section 1. AMOUNT OF INCREASE. Upon effectivity of this Wage Order, the daily minimum wage rates of all minimum wage private sector workers and employees in the non-agricultural and agricultural sector in the region except agriculture sugar and sugar mills 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 and Class D areas.cralaw:red

Sec.  2. APPLICATION TO SUGAR INDUSTRY. Upon effectivity of this Wage Order, the daily minimum wage rates of workers in agriculture sugar and sugar mills regardless of location shall be increased by Five Pesos (P5.00).cralaw:red

Sec.  3. COVERAGE. The adjustments prescribed under this Order shall apply to all minimum wage private sector workers and employees in the region, regardless of their position, designation or status of employment and irrespective of the method by which their wages are paid.cralaw:red

Not covered from the provisions of this order are household or domestic helpers; persons in the personal service of another, including family drivers; and workers of registered Barangay Micro Business Enterprises with valid Certificates of Authority.cralaw:red

Sec.  4. BASIS OF MINIMUM WAGE. The minimum wage rates prescribed under this Order shall be for the normal working hours, which shall not exceed eight (8) hours work a day.cralaw:red

Sec.  5. WORKERS PAID BY RESULTS. All workers paid by results, including those who are paid on piecework, “takay” or task basis, shall be entitled to receive not less than the prescribed minimum wage increase per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.cralaw:red

Sec.  6. 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.cralaw:red

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.cralaw:red

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

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 increase prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2008-2009.cralaw:red

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.cralaw:red

In any case, private educational institutions shall implement the increase herein starting School Year 2008-2009.cralaw:red

Sec.  8. APPLICATION TO CONTRACTORS. In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed increases in the wage rates of the workers 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 prescribed increase or new minimum wage rates, the construction/service contractor shall be jointly and severally liable with his principal or client.cralaw:red

Sec.  9. EXEMPTION. No exemption from compliance with this Wage Order shall be allowed.cralaw:red

Sec.  10. 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.cralaw:red

Sec.  11. APPEAL TO THE COMMISSION. Any party aggrieved by this Wage Order may file a verified appeal with the Commission through the Board within ten (10) calendar days from the publication of this Order.cralaw:red

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.cralaw:red

Sec.  13. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application of the increases in the wage rates under this Order results in distortion of the wage structure within an establishment, the same shall be corrected in accordance with the procedure provided for under Art. 124 of the Labor Code as amended.cralaw:red

Sec.  14. 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 (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.cralaw:red

Sec.  15. 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.cralaw:red

Sec.  16. PENAL PROVISION. Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the prescribed wage increase/allowance/rates in accordance with this Order shall be subject to the penal provisions under RA 6727, as amended by RA 8188.cralaw:red

Sec.  17. 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.cralaw:red

Sec.  18. FREEDOM TO BARGAIN. This Order shall not be construed to prevent workers in particular firms or enterprises of industries from bargaining for higher wages with their respective employers.cralaw:red

Sec.  19. 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 prescribed by the Commission.cralaw:red

Sec.  20. REPEALING CLAUSE. All orders, issuances, rules and regulations, or parts thereof inconsistent with the provision of this Wage Order are hereby repealed, amended or modified accordingly.cralaw:red

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

Sec.  22. IMPLEMENTING RULES. The Board shall prepare the necessary rules to implement this Order subject to approval of the Secretary of Labor and Employment.cralaw:red

Sec.  23. EFFECTIVITY. This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation in the region.cralaw:red

APPROVED: CEBU CITY, PHILIPPINES, September 30, 2007.