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Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD - IX
Regional Office No. 9
Zamboanga City

RULES AND REGULATIONS IMPLEMENTING
WAGE ORDER NO. RIX-14

Pursuant to Section 6, Rule IV of the National Wages and Productivity Commission (NWPC) Amended Rules of Procedure on Minimum Wage Fixing and Section 24 of Wage Order No. RIX-14, the following implementing rules and regulations are hereby issued for guidance and compliance by all concerned:

RULE I
GENERAL PROVISIONS

Section 1. TITLE. This Rules shall be known as the “Implementing Rules of Wage Order No. RIX-14.” 

Sec.   2. DEFINITION OF TERMS. As used in this Rules:

RULE II
COST OF LIVING ALLOWANCE

Section 1. AMOUNT OF THE COST OF LIVING ALLOWANCE.  Upon the effectivity of this Wage Order:

1. All minimum wage workers and employees in the private sector in the region shall receive an additional cost-of-living allowance in the amount of Php 10.00 (Ten Pesos) per day.
2. he daily regional minimum wage rates shall be as follows:

c) After one (1) year from the effectivity of this Wage Order, the Regional Board shall assess/review the effects of the TEN PESOS COLA for a possible integration into the basic minimum wage.

Sec.   2. COVERAGE. The wage increase prescribed herein shall apply to all private sector workers and employees receiving the minimum wage in Region IX, regardless of their position, designation or status and irrespective of the method by which their wages are paid.

Not covered are household or domestic helpers; persons employed in the personal service of another including family drivers; and employees and workers of registered Barangay Micro Business Enterprises (BMBEs) pursuant to RA 9178 otherwise known as the Barangay Micro Business Enterprises Act. 

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

Sec.   4. WAGES OF SPECIAL GROUP 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 the Wage Order.All recognized learnerhip and apprenticeship agreements entered into before the effectivity of the Wage Order shall be considered automatically modified insofar as their wage provisions are concerned to reflect the increase prescribed under this Wage Order.All qualified handicapped workers shall receive the prescribed minimum wage rate pursuant to R. A. 7277.
 
Sec.   5. APPLICATION TO CONTRACTORS. In case of contracts for construction projects, security, janitorial and other similar services, the increase in the minimum wage prescribed herein shall be borne by the principal or client of the contractor and the contract shall be deemed amended accordingly as mandated by the Labor Code.

In the event, however, that the principal or client fails 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 WORKERS PAID BY RESULTS. All workers paid by results, including those who are paid on piece work, “takay”, “pakyaw” or task basis, shall receive not less than the applicable minimum wage rates prescribed under this Wage Order for the normal working hours which shall not exceed eight hours work a day or a proportion thereof for work of less than normal working hours.
  
The wage rates of workers who are paid by results shall continue to be established in accordance with Article 101 of the Labor Code, as amended and its implementing rules and regulations
 
Sec.   7. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the case of private educational institutions, the share of workers and employees covered in the increase in tuition fees for School Year 2007-2008 shall be considered as compliance with the Wage Order. 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 provisions of this Wage Order until the 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 INDUSTRIES WHOSE REVENUES ARE REGULARLY REGULATED BY LAW. Industries whose revenues are regulated by law (such as arrastre, transportation , utilities, etc,) shall apply with this Wage Order immediately upon approval of an adjustment in their rates by the concerned government agencies , but not later than tree (3) months from the effectivity of this Wage Order.
 
Sec.   9. MOBILE AND BRANCH WORKERS. The minimum wage rate of workers, who by nature of their work have to travel, or move from one place to another shall be those applicable in the domicile or head office of their employer.
  
The minimum wage rates of workers working in branches of establishments shall be those applicable in the place where they are stationed.
 
Sec.   10. TRANSFER OF PERSONNEL. The transfer of personnel to areas with lower rates shall in no case be a valid ground for the reduction of the higher wage rates being enjoyed by the worker prior to such transfer. However, where the worker is transferred to an area with higher minimum wage rate, he or she shall be entitled to the higher minimum wage rate.

RULE II
EXEMPTION

Section   1. EXEMPTION. Application for exemption from this Wage Order shall not be considered.

RULE III
APPEAL

Section   1. APPEAL TO THE COMMISSION. Not later than ten (10) days from the date of the publication of this Wage Order, any party aggrieved by the Wage Order issued by this Board may appeal such Order to the Commission by filing a verified appeal with the Board in three (3) printed legible copies. The appeal shall be accompanied by a memorandum of appeal which state the grounds relied upon, the arguments in support of the appeal and the relief being sought.
 
Sec. 2. EFFECT OF FILING 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 of the corresponding increase to employees affected by this Wage Order in the event such Order is affirmed.

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, such dispute shall be decided by the voluntary arbitrator or panel of voluntary arbitrators within ten (10) calendar days from the time said dispute was referred for voluntary arbitration.

In cases where there are no collective bargaining agreements (CBA) 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 this Wage Order.
 
Sec. 2. COMPLAINTS FROM NON-COMPLIANCE. Complaints for non-compliance with the wage increase prescribed under this Wage Order shall be filled with the Regional Office of the Department of Labor and Employment having the jurisdiction over the workplace and shall be the subject of the enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended.
 
Sec. 3. CONDUCT OF INSPECTION BY THE DEPARTMENT OF LABOR AND EMPLOYMENT.  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 establishment, a worker representing the workers in the said company will accompany the inspector.
 
The workers’ representative shall have the right to submit his or her own findings to the Department and to testify on the same if he or she does not concur with the findings of the labor inspector.
 
Sec. 4. NON-DIMINUTION OF BENEFITS. Nothing in this Wage Order and this Rules shall be construed to reduce any existing wage rates and benefits or any form under existing laws, decrees, executive order, or any contract of agreement between workers and employers.
 
Sec. 5. PRODUCTIVITY BASED-WAGES. In order to sustain rising levels of wages and enhance competitiveness, businesses are encouraged to strongly adopt productivity improvement schemes such as time and motion studies, good housekeeping techniques, quality circle, ISTIV, 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 otherwise known as the Productivity Incentives Act of 1990 .
 
Sec. 6. PENAL PROVISONS. Pursuant to the provisions of Section 12 of RA No. 6727, as amended by RA 8188 or otherwise known as the Double Indemnity Act of 1996 any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of the prescribed increase in the Order, shall be punished by a fine of not less than Twenty Five Thousand Pesos (PhP 25, 000.00 ) nor more than One Hundred Thousand Pesos (PhP 100, 000.00 ) 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 Wage Order shall not be entitled to the benefits provided for under Presidential Decree No. 1257 otherwise known as the Probation Law of 1976.
  
If violation is committed by a corporation, trust or form, partnership, association, or any other entity, the penalty of imprisonment shall be imposed upon the entity’s responsible officer, including but not limited to the president, vice-president, chief executive officer, general manager, managing director as partner.

Sec. 7. PROHIBITION AGAINST INJUNCTION. No preliminary or permanent injunction or temporary restringing order (TRO) may be issued by the court, tribunal or other entity against any proceedings before the Commission or the Regional Boards.
 
Sec. 8. FREEDOM TO BARGAIN. The Wage Order shall not be construed to prevent workers in particular firms or enterprises of industries from bargaining for higher wages and flexible working arrangement with their respective employers.
 
Sec. 9. REPORTING REQUIREMENTS. Any person, company, corporation, partnership or any entity engaged in business shall submit a verified listing of their labor component to the Board not later than 31 January 2008 and every year thereafter in accordance with form prescribed by the Commission.
 
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.
 
Sec. 11. SEPARABILITY CLAUSE. If any provision of this Wage Order is held unconstitutional or illegal, the other provisions or parts thereof shall remain valid.
 
Sec. 12. EFFECTIVITY. This Rules shall take effect on January 26, 2008. 

APROVED, this 27th day of December 2007. Zamboanga City, Philippines.

(Sgd.) EDGAR B. LIM, CPA
 Member Employers’ Representative  

(Sgd.) ROBERTO G. VALERIO
 Member Employers' Representative 

(Sgd.) JOSE J. SUAN
Member  Workers' Representative

 (Sgd.) GREGORIO DELA PENA
Member Workers' Representative
 
(Sgd.) RAFAEL G. EVANGELISTA, JR.
Vice-Chairman and NEDA–IX Director IV 

(Sgd.) NAZRULLAH B. MANZUR
Vice-Chairman and DTI-IX Director IV

(Sgd.) CARLOS L. BOTEROS
Chairman and DOLE-IX Director IV
   

APPROVED, this 14th day of January 2008, in the City of Manila, Philippines.

   
(Sgd.) ARTURO D. BRION
Secretary
DEPARTMENT OF LABOR AND EMPLOYMENT