Prescribing a New Wage Structure and an Additional Cost of Living Allowance for Eastern Visayas

May 11, 2011

WAGE ORDER NO. RB VIII-16

PRESCRIBING A NEW WAGE STRUCTURE AND AN ADDITIONAL COST OF LIVING ALLOWANCE FOR EASTERN VISAYAS

WHEREAS, due to the increases in the prices of oil and fuel products, transportation fares and other basic commodities, the Regional Tripartite Wages and Productivity Board of Eastern Visayas (RTWPB VIII) motu proprio conducted public consultations on wages with the labor and management sectors in Ormoc City on March 8, 2011 and a public hearing in Tacloban City on May 11, 2011;

WHEREAS, the result of the consultation and public hearing as well as review of economic indicators has revealed the need to grant relief to the lowly paid workers of Eastern Visayas without impairing the viability of business in the region;

NOW THEREFORE, by virtue of the power and authority vested under Republic Act 6727, known as the Wage Rationalization Act, the Regional Tripartite Wages and Productivity Board, Eastern Visayas (RTWPB VIII) hereby issues this Wage Order.

SECTION 1. New Wage Structure for Eastern Visayas. — Upon the effectivity of this Wage Order, the EIGHT PESOS (PhP8.00) Cost of Living Allowance prescribed under Wage Order No. RB VIII-14 shall be integrated into the Basic Pay. EAIaHD

Further, all workers in the private sector in Eastern Visayas receiving the basic wage rates prescribed herein shall receive an additional FIFTEEN PESOS (PhP15.00) Cost of Living Allowance in addition to the TEN PESOS (PhP10.00) Cost of Living Allowance in Wage Order No. RB VIII-15.

The additional FIFTEEN PESOS (PhP15.00) Cost of Living Allowance shall be implemented in two (2) tranches, the first tranche of TEN PESOS (PhP10.00) shall take effect upon effectivity of this Order and the second tranche of FIVE PESOS (PhP5.00) shall take effect on September 1, 2011.

The new wage structure for Region VIII shall now be as follows:

			Cost of Living Allowance	New Daily Minimum
			Under Wage Order No.	Wage Rates
			RB VIII-16
Sector/Industry	Minimum	Under	Upon	Effective	Upon	Effective
	Wage Rates	Wage	Effectivity	September	Effectivity	September
	upon	Order No.	of this	1, 2011	of this	1, 2011
	Effectivity	RB VIII-15	Order		Order
Non-Agriculture	228.00	10.00	10.00	5.00	248.00	253.00
Cottage/Handicraft	206.00	10.00	10.00	5.00	226.00	231.00
Retail Service
Employing 10
workers and below	197.00	10.00	10.00	5.00	217.00	222.00
Agriculture
(Non-Sugar)	209.00	10.00	10.00	5.00	229.00	234.00
Sugar Industry
Mills	230.00	10.00	10.00	5.00	250.00	255.00
Plantation	203.00	10.00	10.00	5.00	223.00	228.00
Non-Plantation	188.50	10.00	10.00	5.00	208.50	213.50

SECTION 2. Basis of New Wage Structure and COLA. — The Minimum Wage Rates prescribed under this Order shall be for the normal working hours, which shall not exceed eight (8) hours a day.

SECTION 3. Coverage of the New Wage Structure and COLA. — The new minimum wage rates prescribed under this Order shall be applicable to all covered workers under Section 1 hereof regardless of their position, designation or status.

Excluded from the coverage of this Wage Order are household or domestic helpers, persons in the personal service of another, including family drivers, and workers in duly registered Barangay Micro Business Enterprises with Certificates of Authority pursuant to Republic Act 9178. AEHCDa

SECTION 4. 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 new minimum wage rates per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours a day.

SECTION 5. Wages and COLA of Special Groups of Workers. — The minimum wages of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable minimum wage rates prescribed herein.

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 prescribed minimum wage rates and COLA prescribed herein.

SECTION 6. 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 2011-2012 shall be considered as compliance with the wage increase prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2012-2013.

Private educational institutions which have not increased their tuition fees for School Year 2011-2012 may defer compliance with the minimum wage prescribed herein until the beginning of School Year 2012-2013.

In any case, all private educational institutions shall implement the minimum wage prescribed herein starting School Year 2012-2013. EcATDH

SECTION 7. Application to Contractors. — In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed wage increase under this Order 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 increase, the construction/service contractor shall be jointly and severally liable with his principal or client.

SECTION 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.

SECTION 9. Effect of Filing of Appeal. — The filing of the appeal does not 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.

SECTION 10. Creditable Wage Increases. — Wage Increases provided granted by an employer in an organized establishment within three (3) months prior to the effectivity of the Order shall be credited as compliance with the prescribed allowance set forth therein, provided that an agreement to this effect has been forged between the parties or a provision in the Collective Bargaining Agreement allowing creditability exists. In the absence of such an agreement of provision in the CBA, any increase granted by the employer shall not be credited as compliance with the increase prescribed in this Order.

In case the increases given are less than the prescribed allowance, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases and those resulting from the regularization of employees. DaTEIc

SECTION 11. Effects on Existing Wage Structure. — Where the application of the new minimum wage rates results in the 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.

SECTION 12. Complaints for Non-Compliance. — Complaints for non-compliance with this Order shall be filed with the Regional Office of 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.

SECTION 13. Non-Diminution of Benefits. — Nothing in this Order 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.

SECTION 14. Penal Provision. — Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the prescribed wage increase in accordance with this Order shall be subject to the penal provisions under RA 6727, as amended by RA 8188.

SECTION 15. 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.

SECTION 16. Freedom to Bargain. — This Order shall not be construed to prevent workers in particular firms, enterprises or industries from bargaining for higher wages with their respective employers. TAIDHa

SECTION 17. 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, 2012 and every year thereafter in accordance with the form prescribed by the National Wages and Productivity Commission.

SECTION 18. 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.

SECTION 19. 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.

SECTION 20. Implementing Rules. — The Board shall prepare the necessary rules to implement this Order subject to the approval of the Secretary of Labor and Employment. ICAcHE

SECTION 21. Effectivity. — This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation in the Region.

Approved this 11th day of May 2011 at Tacloban City.

(SGD.) ORLANDO C. UYEmployers' Representative

(SGD.) MIGUEL T. TEZONWorkers' Representative

(SGD.) EFREN M. GABRIOLAWorkers' Representative

 

(SGD.) BUENAVENTURA C. GO-SOCO, JR.Vice-Chair, National Economic and Development Authority

 

(SGD.) CYNTHIA R. NIERRASVice-Chair, Department of Trade and Industry

 

(SGD.) FORTER G. PUGUONChairman

ATTACHMENT

NWPC Rules Implementing Wage Order No. RB VIII-16 dated May 17, 2011.