Instructions Governing Implementation of P.D. No. 1614 in Certain Industries

March 14, 1979

LETTER OF INSTRUCTIONS NO. 829

TO : The Minister of Labor

In accordance with our policy of establishing a viable equilibrium among prices, incomes and wages, and taking into account the imperatives of social justice and development, the following instructions shall be observed in the implementation of Presidential Decree No. 1614 in temporarily distressed, labor-intensive, and export-oriented industries: acd

1. Cottage and Handicrafts Industry

Labor-intensive and export-oriented, the cottage and handicrafts industry accounts for 47% of all non-agricultural employment opportunities in the country. It is also being relied upon, in the short term, as the main source of additional income in the rural areas. In view of these considerations and to insure its continuing viability and growth, taking into consideration the well being of the workers in the industry, Presidential Decree No. 1614 shall not apply to this industry until further notice. However, all employers in the industry shall pay the additional P2.00 increase provided under PD 1389 starting 1 April 1979. This means the minimum wage in the industry shall be P10.00 for NACIDA registered industry employers employing not more than 30 workers, and for all other employers, P11.00 outside Metro Manila and P12.00 in Metro Manila. cdt

2. Sugar Industry

The sugar industry, agricultural and industrial sectors, shall be exempted from Presidential Decree No. 1614 until the effective composite price of sugar to producers reaches thirteen US cents per pound at its Philippine peso equivalent.

3. Hotel and Restaurants Industry

In computing the minimum wage in the hotels and restaurants industry, 50% of the credited tips and/or service charges shall be included for the purpose of compliance with Presidential Decree No. 1614.

4. Garments Industry

Presidential Decree No. 1614 shall apply in the labor intensive export industries for the shoe and leather industry, furniture, electronics and the garments industry effective May 1, 1979 in order to give garments manufacturers the opportunity to make the necessary adjustments, especially in connection with their overseas contracts. The P60 increase in allowance shall be effective June 1, 1979.

5. Construction and Service Contractors

Where the contract provides no automatic escalation clause, compliance with Presidential Decree No. 1614 shall be the joint and several liability of the contractor and the principal.

6. Retail and Service Establishments

Presidential Decree No. 1614 shall not apply to retail and service establishments employing not more than ten employees. However, these establishments shall pay on 1 April 1979 the P1 increase in minimum wage scheduled on 1 May 1979 under PD 1389 and another P1 increase on 1 May 1980.

7. Creditable Benefits

All increases in wages and allowances granted unilaterally or under collective agreements in excess of those required by law may be credited as compliance with the emergency cost of living allowance increases under Presidential Decree No. 1614 provided such increases were granted on or after December 1, 1978. casia

8. Private Educational Institutions

Private educational institutions shall comply with PD No. 1614 upon approval of their petitions for tuition fee increases by the Ministry of Education and Culture.

You are hereby required to submit from time to time reports on the progress of the implementation of these instructions.