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REGION IX - ZAMBOANGA PENINSULA REGION
MINIMUM WAGE RATE

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


WAGE ORDER NO. RIX - I4

IMPLEMENTING RULES & REGULATIONS


PRESCRIBING FOR THE GRANT OF COST OF LIVING ALLOWANCE (COLA)

IN ZAMBOANGA PENINSULA REGION


WHEREAS,
Republic Act No. 6727, otherwise known as the Wage Rationalization Act of 1989, empowers the Regional Tripartite Wages and Productivity Boards (RTWPBs) to determine and fix minimum wage rates applicable in their respective regions and to issue the corresponding wage orders subject to the guidelines issued by the National Wages and Productivity Commission (NWPC);chanroblesvirtualawlibrary

WHEREAS, the Regional Board, in the exercise of its wage fixing function and in order to determine whether or not there is a need to adjust the minimum wage levels in the region, motu proprio conducted public consultations/hearings in Ipil, Zamboanga Sibugay Province on 10 July 2007; in Dipolog City on 11 July 2007; in Pagadian City on 12 July 2007; in Isabela City on 17 July 2007; and in Zamboanga City on 18 July 2007, where both labor and management sectors had the opportunity to present and support their respective positions;chanroblesvirtualawlibrary

WHEREAS, based on the results of the wage consultation/hearings and the Board’s study on the socio-economic factors in the region, this Regional Board deems it necessary to adjust the minimum wage rates in Region-IX without hampering, however, the viability of businesses and industries;chanroblesvirtualawlibrary

WHEREAS, consistent with the government’s policy of achieving higher levels of productivity, this Regional Board enjoins the workers and business enterprises towards competitiveness through continuous productivity improvement and gainsharing programs;chanroblesvirtualawlibrary

NOW, THEREFORE, considering the above premises and by virtue of the power and authority vested under Republic Act No. 6727 otherwise known as Wage Rationalization Act of 1989, this Regional Tripartite Wages and Productivity Board–IX, hereby issues this Wage Order No. RIX- 14:cralaw

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. The daily regional minimum wage rates shall be as follows: 
CATEGORY/SECTOR

Basic Wage under Wage   Order No.    RIX -13

COLA
under W. O. No. R1X-14
New Daily Minimum Wage Rate
1. NON-AGRICULTURAL

Includes private hospital,     educational institutions, security     agencies, janitorial, retail/service     establishments employing more     than 30 workers 



P215.00


P10.00


P225.00
2. AGRICULTURAL
   Includes rubber-based enterprises
     
- Plantation Agricultural        Enterprise

190.00

10.00

200.00
- Non-Plantation Agricultural        Enterprise

170.00

10.00

180.00
3. RETAIL / SERVICE ESTABLISHMENT
Employing not more than 30     workers

195.00

10.00

205.00
4. COTTAGE/HANDICRAFT
170.00
10.00
180.00

    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 prescribed wage increase under this Wage Order shall apply to all workers and employees in the private sector receiving the minimum wage rates in Region-IX, regardless of position, designation or status of employment and irrespective of the method by which their wages are paid. chanroblesvirtualawlibrary

Not covered in this Wage Order 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) with Certificate of Authority pursuant to R. A. 9178.

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

Sec.   4. 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 prescribed by this Wage Order.

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

All qualified handicapped workers shall receive the prescribed minimum wage rate pursuant to R. A. 7277. chanroblesvirtualawlibrary

Sec.   5. EXEMPTION. Application for exemption from this Wage Order shall not be considered.

Sec.   6. 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.   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 applicable minimum wage rates prescribed herein. However, payment of any difference shall be given starting School Year 2008-2009.

Private educational institutions which do not increase their tuition fees for School Year 2007-2008 may defer compliance with the provisions of this Wage Order until 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 WORKERS PAID BY RESULTS. All workers/employees paid by results, including those who are paid on piecework, takay, pakyaw, or task basis, shall receive not less than the applicable regional minimum wage rates prescribed under the Order for the normal working hours which may not exceed eight hours work a day, or a proportion thereof for work of less than the normal working hours.

Sec. 9. APPLICATION TO INDUSTRIES WHOSE REVENUES ARE REGULARLY REGULATED BY LAW. Industries whose revenues are regulated by law (such as arrastre, transportation utilities, etc.) shall comply with this Wage Order immediately upon approval of an adjustment in their rates by the concerned government agencies , but not later than three (3) months from effectivity of this Wage Order

Sec.   10. MOBILE AND BRANCH WORKERS. The minimum wage rate of workers, who by nature of their work have to travel, shall be those applicable in the domicile or head office of their employer. chanroblesvirtualawlibrary

The minimum wage rate of workers working in branches or agencies of establishments shall be those applicable in the place where they are stationed. chanroblesvirtualawlibrary

Sec.   11. 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.

Sec.   12. APPEAL TO THE COMMISSION.  Any party aggrieved by this Wage Order may file a verified appeal with the National Wages and Productivity Commission (NWPC) through the Regional Wages and Productivity Board (RTWPB) within ten (10) calendar days from the publication of this Wage Order. chanroblesvirtualawlibrary

Sec.   13. EFFECT OF FILING OF APPEAL. The filing of an 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. chanroblesvirtualawlibrary

Sec.   14. EFFECT ON EXISTING WAGE STRUCTURE. Where the application of the increase in wage under this Wage 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.

Sec.   15. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with this Wage Order shall be filed with Regional Office No. IX 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, without prejudice to criminal prosecution which may be undertaken against those who fail to comply. chanroblesvirtualawlibrary

Sec.   16. PRODUCTIVITY BASED-WAGES. In order to sustain rising levels of wages and enhance competitiveness, businesses are encouraged to adopt productivity improvement schemes such as time and motion studies, good housekeeping techniques, ISTIV, quality circles, 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. chanroblesvirtualawlibrary

Sec.   17. NON-DIMINUTION OF BENEFITS. Nothing in this Wage Order shall be construed to reduce existing wage rates, allowances and benefits of any form under existing laws, decrees, issuance, and executive orders and/or under any contract of agreement between workers and employers. chanroblesvirtualawlibrary

Sec.   18. PENAL PROVISION. Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the prescribed minimum wage rates in accordance with this Wage Order shall be subject to the penal provision under RA 6727, as amended by RA 8188 otherwise known as the Double Indemnity Act of 1996.

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 proceeding before the Board. chanroblesvirtualawlibrary

Sec.   20. FREEDOM TO BARGAIN. This Wage 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.   21. 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 31 January 2008 and every year thereafter in accordance with the form prescribed by the Commission. chanroblesvirtualawlibrary

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, for any reason, any Sec.  or provision of this Order is declared unconstitutional or illegal, the other provisions or parts thereof shall remain valid.

Sec.   24. IMPLEMENTING RULES AND REGULATIONS The Regional Board shall prepare the necessary implementing rules and regulations to implement this Wage Order subject to the approval of the Secretary of Labor and Employment. chanroblesvirtualawlibrary

Sec.   25. EFFECTIVITY. This Wage Order shall take effect fifteen (15) days after complete publication in a newspaper of general circulation in the region.

APPROVED this 26th day of December 2007, in Zamboanga City, Philippines.

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

(Sgd.) JOSE J. SUAN
Member, Workers’ Representative

(Sgd.) ROBERTO G. VALERO
Member, Employers’ 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


Published on January 11, 2008 at Zamboanga Today

EFFECTIVITY DATE: January 26, 2008.


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