Republic of the
Philippines
DEPARTMENT OF LABOR AND
EMPLOYMENT
Regional Tripartite
Wages and Productivity Board-Region XI
Davao City
RULES IMPLEMENTING WAGE
ORDER NO. RB-XI-14
Pursuant
to Section 6, Rule IV of the NWPC Amended Rules of Procedure on Minimum
Wage Fixing and Section 21 of Wage Order No. RB-XI-14, the following
rules are hereby issued for the guidance and compliance by all
concerned:
Rule I
DEFINITION OF TERMS
Section 1. DEFINITION OF
TERMS. As used in this Rules:
a. “WAGE ORDER” means Wage Order No.
RB-XI-14, promulgated by this Regional Board pursuant to its
wage-fixing authority.
b. “NWPC” means the NATIONAL WAGES AND PRODUCTIVITY
COMMISSION.
c. “REGIONAL BOARD” means the Regional Tripartite Wages
and Productivity Board of Region XI.
d. “DAVAO REGION (REGION-XI)” covers the Cities of
Davao, Digos, Island Garden of Samal, Tagum, Panabo, Mati, and the
Provinces of Davao del Sur, Davao del Norte, Davao Oriental, and
Compostela Valley.
e. “DEPARTMENT” refers to the Department of Labor and
Employment, Region XI.
f. “REGIONAL MINIMUM WAGE” is the lowest wage rate fixed
by RTWPB-XI that an employer can pay his/her workers which consists of
the minimum basic wage and the cost of living allowance (COLA).
g. “BARANGAY MICRO BUSINESS ENTERPRISES (BMBEs)” refer
to any registered business entity or enterprise granted a Certificate
of Authority pursuant to R.A. 9178.
h. “AGRICULTURE” refers to farming in all its branches
and among others, includes the cultivation and tillage of the soil,
production, cultivation, growing and harvesting of any agricultural or
horticultural commodities, dairying, raising of livestock or poultry,
the culture of fish and other aquatic products in farms or ponds, and
any activity 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 farms products.
i. “PLANTATION AGRICULTURAL WORKERS” are those
agricultural workers employed in any plantation or agricultural
establishment with an area of more than twenty-four ( 24 ) hectares in
a locality or which employs at least twenty ( 20 ) workers. All other
agricultural workers not included in the definition of plantation
agricultural workers are considered non-plantation agricultural workers.
j. “RETAIL ESTABLISHMENT” is one engaged in the sale of
goods to end users for personal or household use.
A retail establishment that engages in wholesale activities
loses its retail character.
k. “SERVICE ESTABLISHMENT” is one principally engaged in
the sale of services to individuals for their own or household use and
is generally recognized as such.
l. “WAGE DISTORTION” refers to a situation where an
increase in prescribed wage rates results in the elimination or severe
contraction of intentional quantitative differences in wage or salary
rates between and among employee groups in an establishment as to
effectively obliterate the distinctions embodied in such wage structure
based on skills, length of service, or other logical bases of
differentiation.
Rule II
NEW MINIMUM WAGE RATES
Section 1. THE NEW DAILY MINIMUM WAGE
RATES. Upon the effectivity of
the Wage Order.
a) All minimum wage earners
in Davao Region shall receive an increase in their Cost of Living
Allowance in the amount of P10.00 per day in addition to the P16.00
COLA under Wage Order No. RTWPB-XI-13.
b) The new daily minimum wage rates of covered workers in the
private sector in Davao Region shall be as follows:cralaw:red
SECTOR/INDUSTRY |
Cities of:
Davao, Digos, Island
Garden of Samal,
Mati, Panabo, and Tagum |
Provinces of:
Davao del Norte, Davao del Sur, Davao Oriental,
and Compostela Valley |
Basic Wage |
COLA |
New Minimum Wage |
Basic Wage |
COLA |
New Minimum Wage |
NON-AGRICULTURE |
P224.00 |
P26.00 |
P250.00 |
P222.00 |
P26.00 |
P248.00 |
AGRICULTURE |
Plantation (i.e, more than 24 hectares
or employing at least 20 workers) |
214.00 |
26.00 |
240.00 |
212.00 |
26.00 |
238.00 |
Non -Plantation |
193.00 |
26.00 |
219.00 |
191.00 |
26.00 |
217.00 |
RETAIL/SERVICE |
Employing more than 10 workers |
224.00 |
26.00 |
250.00 |
222.00 |
26.00 |
248.00 |
Employing not more than 10 workers |
193.00 |
26.00 |
219.00 |
191.00 |
26.00 |
217.00 |
Sec. 2. COVERAGE. The
prescribed wage rates under the Wage Order
shall apply to all workers and employees in the private sector
receiving the minimum wage in Davao Region regardless of position,
designation or status of employment and irrespective of the method by
which their wages are paid. Not covered in the Wage Order are household
or domestic helpers, family drivers, persons employed in the personal
service of another and workers in registered Barangay Micro Business
Enterprises with Certificate of Authority pursuant to R.A. 9178.
Sec. 3. 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 a day.
Sec. 4. EXEMPTION. No
exemption from compliance under this Wage
Order shall be allowed except those provided under Sec. 2 above.
Sec. 5. 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.
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.
In any case, all private educational
institutions shall implement the
increase herein starting School Year 2008-2009.
Sec. 6. APPLICATION TO
CONTRACTORS. In the case of contracts for
construction projects, and for security, janitorial and similar
services, the prescribed minimum wage rates 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 new minimum
wage rates, the construction/service contractor shall be jointly and
severally liable with his principal or client.
Sec. 7. WORKERS PAID BY RESULTS.
All workers paid by results,
including those paid on piecework, “takay”, “pakyaw”, or task basis,
shall be entitled to receive the new minimum wage rates prescribed in
the Wage Order per eight (8) hours work a day, or a proportion thereof
for work of less than the normal working hours.
The
adjusted minimum wage rates for workers paid by results shall be
computed in accordance with the following steps:
a. |
Amount of increase in AMW ( which is
the applicable minimum wage rate ) / previous AMW x 100 = % increase; |
b. |
Existing rate/piece x % increase =
Increase in rate/piece. |
c. |
Existing rate/piece + increase in
rate/piece = Adjusted rate/piece. |
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 regulations.
Sec. 8. 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 learnership and apprenticeship agreements entered into
before the effectivity of the Wage Order shall be considered
automatically modified insofar as their wage clauses are concerned to
reflect the new prescribed minimum wage rates.
Sec. 9. 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
as guides in determining the equivalent monthly minimum wage rates:
a) |
For those
who are
required to work everyday including Sundays or rest days, special days
and regular holidays: |
Equivalent =
Applicable Daily
Wage Rate (ADR) x 392.80 days
Monthly Rate (EMR)
---------------------------------------------------
12
Where 392.80
days are: |
300 days |
-
|
Ordinary
working days |
20 days |
-
|
10 regular
holidays x
200 |
2.6 days |
-
|
1 regular
holiday
(falling on last Sunday of August x 200% + (30% of 200%) |
66.30 days |
-
|
51 rest
days x 130% |
3.90 days |
-
|
3 special
days x 130% |
--------------
|
|
|
392.80
days |
- |
Total
equivalent number of days |
b) |
For those
who do not
work but are considered paid on rest days, special days and regular
holidays: |
ADR x 365 days
EMR=
-----------------
12
Where 365 days are: |
|
|
|
300 days |
-
|
Ordinary
working days |
51 days |
-
|
Rest days |
11 days |
-
|
Regular
holidays |
3 days |
-
|
Special days |
--------------
|
|
|
365
days |
- |
Total
equivalent number of days |
c) |
For those
who do not
work and are not considered paid on Sundays or rest days: |
ADR x 314 days
EMR=
-----------------
12
Where 314 days are: |
300 days |
-
|
Ordinary
working days |
11 days |
-
|
Regular
holidays |
3 days |
-
|
3 Special
days (if
considered paid; if actually worked x 130%) |
--------------
|
|
|
314
days |
- |
Total
equivalent number of days |
d) |
For those
who do not
work and are not considered paid on Saturdays and Sundays or Rest days: |
ADR
x 262 days
EMR
= -----------------
12
Where 262 days are: |
|
|
|
248 days |
-
|
Ordinary
working days |
11 days |
-
|
Regular
holidays |
3 days |
-
|
3 Special
days (if
considered paid; if actually worked x 130%) |
--------------
|
|
|
262
days |
- |
Total
equivalent number of days |
* NOTE:
The above suggested formulae shall
be subject to the changes to be done by the Bureau of Working
Conditions due to the enactment of RA 9492 (An Act Rationalizing the
Celebration of National Holidays Amending for the Purpose Sec.
26,
Chapter 7 Book I of Executive Order No. 292, as Amended, Otherwise
known as the Administrative Code of 1987).
Sec. 10. MOBILE AND
BRANCH WORKERS. The minimum wage rates of
workers, who by nature of their work have to travel, shall be those
applicable in the domicile or head office of the employer.
The
minimum wage rates of workers working in branches or agencies of
establishments within Davao Region shall be those applicable in the
place where they are stationed.
Sec. 11. TRANSFER OF PERSONNEL.
The transfer of personnel to areas
outside Davao 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 the other regions with higher wage rates shall
be entitled to the minimum wage rate applicable therein.
Sec. 12. 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, quality circles, labor-management
cooperation as well as implement gainsharing 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. 13. APPEAL TO THE COMMISSION.
Any party aggrieved by the Wage
Order may file a verified appeal with the NWPC through the Board within
ten (10) calendar days from the publication of the Wage Order. The NWPC
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 FILING OF
APPEAL. The filing of the appeal does
not operate to stay the Wage Order unless the party appealing such Wage
Order shall file with the NWPC an undertaking with a surety or sureties
in such amount as may be fixed by the NWPC for payment of the
prescribed increase to employees affected by the Wage Order in the
event such Wage Order is affirmed.
Rule III
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 distortion 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 (VA) or panel of voluntary arbitrators within ten (10)
calendar days from the time said dispute was 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 (NCMB) and if it remains
unresolved after ten (10) calendar days of conciliation, the same be
referred to the appropriate branch of the National Labor Relations
Commission (NLRC) or at the option of the parties to voluntary
arbitration. The voluntary arbitrator shall decide the dispute within
ten (10) calendar days from the time said dispute was referred to
voluntary arbitration. 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 a wage distortion shall not stay the
applicability of any wage adjustment prescribed by the Wage Order.
Sec. 2. CONDUCT OF INSPECTION BY
THE DEPARTMENT. The Department
shall conduct inspection of establishments, as often as necessary, to
determine whether 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, the 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 representative chosen by the workers in
the said company shall accompany the Department 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 Department Inspector.
Sec. 3. COMPLAINTS FOR
NON-COMPLIANCE. Complaints for
non-compliance with the Wage Order shall be filed with the Regional
Office of the Department of Labor and Employment (DOLE) having
jurisdiction over the workplace and shall be the subject of enforcement
proceedings under Article 128 and 129 of the Labor Code, as amended.
Sec. 4. NON-DIMINUTION OF
BENEFITS. Nothing in the Wage Order and
in this Rules 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.
Sec. 5. PENAL PROVISION.
Pursuant to the provisions of Sec. 12
of RA 6727, as amended by RA 8188, any person, corporation, trust,
firm, partnership, association or entity which refuses or fails to pay
the new minimum wage rates prescribed in the Wage Order shall be
punished by a fine of not less than Twenty-five thousand pesos
(P25,000.00) nor more than One hundred thousand pesos (P100,000.00) 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 the Wage Order 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 imposable 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 director or partner.
Sec. 6. PROHIBITION AGAINST
INJUNCTION. No preliminary injunction
or temporary restraining order may be issued by any court, tribunal or
other entity against the Wage Order or any proceedings before the
Regional Board.
Sec. 7. FREEDOM TO BARGAIN.
The Wage Order shall not be construed
to prevent workers in particular firms or enterprises from bargaining
for higher wages and flexible working arrangements with their
respective employers.
Sec. 8. 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 Sec.
3
of R.A. 6727 in relation to Art. 124 of the Labor Code, as amended and
in the form as prescribed by the NWPC.
Sec. 9. REPEALING CLAUSE.
All orders, issuances, rules and
regulations on wages, or parts thereof inconsistent with the provision
of the Wage Order and this Rules are hereby repealed, amended or
modified accordingly.
Sec. 10. SEPARABILITY CLAUSE.
If any provision or part of the Wage
Order and this Rules, or the application thereof to any person or
circumstance is held invalid or unconstitutional, the remainder of the
Wage Order and this Rules or the application of such provision or part
thereof to other persons or circumstances shall not be affected thereby.
Sec. 11. EFFECTIVITY.
This Rules shall take effect upon the
effectivity of the Wage Order.
Done
in the City of Davao, Philippines, this 21st day of August 2007.
(Sgd.) PONCIANO M. LIGUTOM
DOLE-XI, Regional Director
Board Chairman
|
(Sgd.) MERLY M. CRUZ
DTI-XI, Regional Director
Vice-Chairman
|
(Sgd.) NICASIO ANGELO J. AGUSTIN
NEDA-XI, Regional Director
Vice-Chairman
|
(Sgd.) RULFO V. ASIS
Management Representative
Member
|
(Sgd.) BIENVENIDO D. CARIAGA
Management Representative
Member
|
(Sgd.) JORGE G. ALEGARBES
Labor Representative
Member
|
(Sgd.) VIRGINIA T. CAMUS
Labor Representative
Member
|
Approved this 30th of
August 2007. |
(Sgd.) ROMEO C. LAGMAN
Acting Secretary
Department of Labor and
Employment
|
*NOTE:
The components in the above suggested formulae had
been revised by the
Bureau of Working Conditions due to the enactment of R. A. 9492, as
follows:
a. For
those who are
required to work everyday including Sundays or rest days, special days
and regular holidays |
|
|
|
EMR = |
ADR x 392.5
|
|
|
12 |
|
|
|
Where 392.5 days/year = |
299.0
22.0
67.6
3.9 |
- ordinary working days
- regular holidays
- 52 rest days x 130%
- 3 special days x 130% |
|
|
|
|
|
|
392.5 |
Total no. of
days/year |
b. For those who do not work and
are not considered paid on Sundays or rest days |
|
|
|
EMR = |
ADR x 313
|
|
|
12 |
|
|
|
Where 313 days/year = |
299
11
3 |
- ordinary working days
- regular holidays
- special days |
|
|
|
|
|
|
313 |
Total no. of
days/year |
c. For those who do not work and
are not considered paid on Saturdays and Sundays or rest days |
|
|
|
EMR = |
ADR x 261 |
|
|
12 |
|
|
|
Where 261 days/year = |
247
11
3 |
- ordinary working days
- regular holidays
- special days |
|
|
|
|
|
|
261 |
Total no. of
days/year |
d.
For those who
do not work but are considered paid on rest days and holidays |
|
|
|
EMR = |
ADR x 365 |
|
|
12 |
|
|
|
Where 365 days/year = |
299
52
11
3
|
- ordinary working days
- Sundays/rest days
- regular holidays
- special days |
|
|
|
|
|
|
365 |
Total no. of
days/year | | |