Prescribing a New Wage Structure and Providing New Minimum Wage Rates in Mimaropa

May 27, 2005

WAGE ORDER NO. RBIV-B-01

PRESCRIBING A NEW WAGE STRUCTURE AND PROVIDING NEW MINIMUM WAGE RATES IN MIMAROPA

WHEREAS, the Regional Tripartite Wages and Productivity Board (RTWPB) is mandated by law to rationalize wage fixing in the Region taking into account the prevailing economic condition affecting the cost of living of wage earners, the sustainable viability of business and industry, and the imperatives of socio-economic development of the region; IAEcCa

WHEREAS, consistent with the governments policy of achieving higher levels of productivity to promote economic growth and generate employment, and to augment the income of workers, there is need to build the capacity of business enterprises to be competitive through productivity improvement and gain sharing programs;

WHEREAS, consistent with the policy of providing workers with safety net protection against unduly low wages, the Board recognizes the need to review the current minimum wage levels which have not been adjusted since 2002;

WHEREAS, Region IV-B was created in 2002 under Executive Order No. 103 to promote efficiency in the public service and accelerate social and economic development in the region comprising the provinces of Marinduque, Mindoro Occidental, Mindoro Oriental, Palawan, Romblon and the cities of Calapan and Puerto Princesa, otherwise known as MIMAROPA;

WHEREAS, RTWB No. IV-B, after due notice to all concerned sectors, conducted motu proprio a public hearing and series of consultations/dialogues with employers' and workers' groups, local government officials and other interested parties in the region to determine whether a wage order should be issued, to wit: public hearing in Quezon City on May 27, 2005 and consultation/dialogues in Batangas City, Puerto Princesa City, and Calapan City, Oriental Mindoro with active participation of the members of the Tripartite Industrial Peace Council (TIPC); iatdc2005

WHEREAS, there is a need to grant minimum wage adjustment to workers in MIMAROPA to help them cope with the rising cost of living due to erosion of purchasing power vis-a-vis increase in prices of basic goods and services including transportation fare as a result of adjustments in prices of oil and other petroleum products, without detriment to the productivity and viability of business and industry therein;

WHEREAS, it is an opportune time to adopt a new wage structure suitable for MIMAROPA in its first Wage Order taking into account existing income level differentiation among cities, provinces and municipalities number and size of establishments and number of workers who will benefit from the minimum wage adjustment and other relevant socio-economic factors;

WHEREAS, the Board agreed to simplify the wage structure of the cities and provinces/municipalities in the region;

NOW, THEREFORE, the REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD, REGION IV-B, by virtue of the power granted to it under Republic Act No. 6727, otherwise known as the Wage Rationalization Act, hereby issues this Wage Order:

SECTION 1. Amounts of Increase. — Upon effectivity of this Wage Order the existing minimum wage rates in MIMAROPA based on the new classification shall be increased as follows:

AREAS
SECTOR	Cities of Puerto	Rest of the Region,
	Princess and Calapan	Including San Jose, Occ.
	Mindoro and Sta. Cruz,
	Marinduque
	Upon	Effective	Upon	Effective
	Effectivity	Jan. 1,	Effectivity	Jan. 1, 2006
	of W.O.	2006	of W.O. No.
	No.	RBIVB-01
	RBIVB-01
Non-Agriculture	P10.00	P10.00	P10.00	P5.00
Agriculture	P10.00	-	P10.00	-
Plantation
Non-Plantation
Cottage and Micro	P5.00	-	P5.00	-
Enterprises
Retail Service Employing	P5.00	-	P5.00	-
Not More than 10 Workers

SECTION 2. New Minimum Wage Rates:

The minimum wage rates in MIMAROPA shall be as follows:

AREAS
SECTOR	Cities of Puerto	Rest of the Region,
	Princess and Including	San Jose, Occ.
	Calapan	Mindoro and
	Sta. Cruz,
	Marinduque
	Upon Effective	Upon Effective
	Effectivity Jan. 1,	Effectivity Jan. 1, 2006
	of W.O. 2006	of W.O.
	RBIVB-01	No. RBIVB-01
NON-AGRICULTURE	P206.00*	P211.00
AGRICULTURE	P206.00	P216.00	P192.00**	P197.00
Plantation	P186.00	P177.00
Non-Plantation	P166.00	P157.00
COTTAGE. &
MICRO ENTERPRISES	P169.00	P160.00
RETAIL/SERVICE
ESTABLISHMENTS
Employing not more
than 10 workers	P111.00	P109.00
* Existing employees in San Jose, Occidental Mindoro and Sta. Cruz, Marinduque workers/employees hired before the effectivity of Wage Order RBIV-01.
** New employees in the rest of the region including San Jose, Occidental Mindoro and Sta. Cruz, Marinduque — workers/employees hired on or after the effectivity of Wage Order RBIVB-01

SECTION 3. Coverage. — This new minimum wage order shall apply to all minimum wage workers and employees in the private sector in the region, regardless of their position, designation or status of employment and irrespective of the method by which their wages are paid.

This Order shall not apply to household or domestic helpers, including family drivers and persons in the persons in the personal service of another, and workers of registered Barangay Micro-Business Enterprises with Certificate of Authority. EcATDH

SECTION 4. Basis of Minimum Wage Rates. — The minimum wage rates prescribed under this Order shall be for the normal working hours which shall not exceed eight (8) hours of work a day.

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 for eight (8) normal working hours a day, or a portion thereof for working less than eight (8) hours.

SECTION 5. Application for Special Groups of Workers. — Apprentices and learners shall receive not less than seventy five (75%) of the applicable minimum wage rates prescribed in this Order.

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.

SECTION 6. Application for Special Groups of Workers. — 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 productivity 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;

SECTION 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 2005-2006 shall be considered as compliance with the minimum wage rates prescribed in this Order. However, payment of any shortfall in the minimum wage rates set forth in the Order shall be covered starting School Year 2006-2007.

Private educational institutions, which did not increase their tuition fees for the school Year 2005-2006, may defer compliance with the provisions of this Order until School Year 2006-2007.

In any case, all private educational institutions shall implement the minimum wage rate prescribed herein starting School Year 2005-2006.

SECTION 8. Application to Contractors. — In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed minimum wage rates for covered workers shall be borne by the principal or clients of the construction/service contractors and the contract shall be deemed amended accordingly. If the principal or client fails to pay the prescribed minimum wage rates, the construction/service contractor shall be jointly and severally liable with the principal or client.

SECTION 9. Exemptions. — The following categories of establishments may be exempted upon application with and as determined by the Board in accordance with the NWPC Guidelines No. 01, Series of 1996 (NWPC Revised Guidelines on Exemption):

a. Distressed Establishments;

b. New Business Establishments which started operations on or after January 1, 2005;

c. Establishments adversely affected by calamities;

d. Retail/Service establishments regularly employing not more than ten (10) workers.

All applications for exemption from compliance with this Order shall be filed within seventy-five (75) days from the date of publication of the Rules Implementing the Wage Order.

In the case of New Business Enterprises, applications shall be filed not later than sixty (60) days from the date of registration. ATCaDE

SECTION 10. Effect of Application for Exemption. — Whenever an application for exemption is filed with the Board, action on any complaint for non-compliance with this Order shall be deferred pending resolution of the said application.

If an application for exemption is not granted, the employees of the applicant firm shall receive the appropriate compensation due them as provided for in this Order plus one percent (1%) interest a month retroactive to a effectivity of this Order.

SECTION 11. Appeal to the Commission. — Any party aggrieved by the 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 12. Effect of Filing an 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.

SECTION 13. Creditable Wage Increase. — Wage increases granted by an employer in an organized establishment within three (3) months prior to the effectivity of this Order shall be credited as compliance with the prescribed increase set forth herein, if expressly provided for and agreed upon in a collective bargaining agreement.

In unorganized establishments, wage increases granted by the employer within three (3) months prior to the effectivity of this Order shall be credited as compliance therewith.

If such increases are less than the prescribed minimum wage increase herein, the employer shall pay the difference. Such increases shall not include anniversary wage increases, merit wage increases and those resulting from the regularization or promotion of employees.

SECTION 14. Effect on Existing Wage Structure. — Where the application of the wage increases prescribed in this Order results in distortion in the wage structure within the establishment, it shall be corrected in accordance with the procedure under Article 124 of the Labor Code, as amended.

SECTION 15. Non-Diminution of Benefits. — Nothing in this order shall be construed to reduce any existing wage rate, allowance or other benefit under existing laws, decrees, issuance and executive orders or under any contract or agreement between workers and employers.

SECTION 16. Penal Provision. — Any employer who refuses or fails to pay the minimum wage rate prescribed under this Order shall be subject to the penalties imposed under R.A. 6727, as amended by R.A. 8188.

SECTION 17. 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 18. Repealing Clause. — All laws, orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this Wage Order are hereby repealed or modified accordingly.

SECTION 19. Separability Clause. — If for any reason, any section or provisions of this Order declared unconstitutional or illegal, the other provisions or parts shall remain valid.

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

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

Approved this 27th day of May, 2005 in Quezon City, Philippines.

 

(SGD.) BENJAMIN P. BASQUINAS, JR.Worker Representative

 

(SGD.) JUANITO S. FACUNDOWorker Representative

 

(SGD.) RENATO B. ALMEDAEmployer Representative

 

(SGD.) LUCILA C. CASTILLO-TARRIELAEmployer Representative

 

(SGD.) OSCAR D. BALBASTROVice-Chairman

 

(SGD.) NELLY F. VILLAFUERTEVice-Chairman

Published in Manila Standard on June 2, 2005.