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Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Cotabato City

WAGE ORDER NO. ARMM - 09

IMPLEMENTING RULES & REGULATIONS

INTEGRATION OF P10.00 COLA TO THE BASIC WAGE AS A NEW
MINIMUM WAGE RATES

WHEREAS, the Regional Tripartite Wages and Productivity Board- Autonomous Region in Muslim Mindanao (RTWPB-ARMM) is mandated to determine and fix minimum wage rates applicable in the region;        

WHEREAS, there being no petition for wage increase filed by any party the Board motu propio initiated an action or inquiry to determine whether a wage order should be issued, by conducting public consultations in the provinces of Tawi-Tawi on November 27, 2007; Sulu on November 28, 2007; and in Cotabato City on December 11, 2007;

WHEREAS, following the policy direction of the RMM Honorable Regional Governnor DATU ZALDY UY AMPATUAN to attract more foreign and local investments in the region, the Board decided to integrate the P10.00/day COLA under Wage Order No. ARMM-09 into the basic wage, in order to augment the benefits of the workers without much effect to the expenditures of the establishments, thus, still maintaining the daily minimum wage of P200.00 prescribed under Wage Order No. ARMM-09;

WHEREAS, consistent with the government's policy of achieving higher levels of productivity to promote economic growth and generate employment, there is the need to give relief to the workers without impairing the viability of the business establishment as well as the need to build the capacity of business enterprises to be competitive through productivity improvement and gain-sharing programs;

NOW, THEREFORE , by virtue of the power and authority vested under Republic Act No. 6727, known as the "Wage Rationalization Act", the Regional Tripartite Wages and Productivity Board-Autonomous Region in Muslim Mindanao (RTWPB-ARMM), hereby issues this Wage Order:

Section 1.  Integration of COLA.Upon the effectivity of this Wage Order, the P10.00 per day COLA under W.O. No. ARMM-09 shall be integrated into the basic wage. The P200.00 daily minimum wage rate under W.O. No. ARMM-09 shall be maintained, however, it is now all basic wage.

Sec.  2. Non-Wage Benefits. Establishments may extend non-wage benefits to all workers in the region as group life insurance, hospitalization, rice allowance, hazard pay, scholarship, hajj or pilgrim, and the like.

Sec.  3. Coverage. This Wage Order shall apply only to minimum wage earners in the region, except domestic helpers, family drivers, and those employed in the personal service of another, and workers in registered Barangay Micro Business Enterprises with certificates of authority pursuant to R. A. 9178.

Sec.  4. Productivity Based Wages. In order to sustain rising levels of wages and enhance competitiveness, businesses are encouraged strongly 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 Board shall provide the necessary studies and technical assistance pursuant to Republic Act No. 6971 or the Productivity Incentives Act of 1990”.

Sec.  5. 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.

Sec.  6. Workers Paid by Results. All workers paid by results, including those who are paid on piecework, “takay”, “pakyaw” or task basis, shall be entitled to receive the prescribed minimum wage rate per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours work a day.

Sec.  7. 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 the region.
       
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.

Sec.  8.  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.

Sec.  9.  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 the Order, in the event such Order is affirmed.

Sec.  10. Exemptions. Upon application with and as determined by the Regional Board, the following establishments may be exempted from compliance with this Order for not more than one (1) year subject to applicable guidelines issued by the Commission:

a. Establishments adversely affected by natural calamities;

b. Distressed establishments; and

c. New business enterprises.

Sec.  11.  Complaints for Non-Compliance. Complaints for non-compliance with this Order shall be filed with 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.

Sec.  12. Penal Provision. Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the wage increase prescribed in this Order, shall be subject to the penal provisions under R. A. 6727, as amended by R. A. 8188.

Sec.  13. 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 Board.

Sec.  14. 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.

Sec.  15. 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.

Sec.  16.  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.

Sec.  17.  Separability Clause. If, for any reason, any Section  or provision of this Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid.

Sec.  18. Implementing Rules. The Board shall prepare the necessary rules to implement this Order subject to approval of the Regional Governor of ARMM.

Sec.  19. Effectivity. This Order shall take effect fifteen (15) days after publication in at least one (1) newspaper of general circulation in the region.cralaw:red

Approved this 11^th day of December 2007 in Cotabato City, Philippines.