(Providing for New Minimum Wage Rates in Region-IX)

October 27, 2011

WAGE ORDER NO. RIX-17

(PROVIDING FOR NEW MINIMUM WAGE RATES IN REGION-IX)

WHEREAS, Republic Act No. 6727, otherwise known as the Wage Rationalization Act of 1989, empowers the Regional Tripartite Wages and Productivity Boards to determine and fix minimum wage rates applicable in the regions and to issue corresponding wage orders subject to existing Guidelines issued by the National Wages and Productivity Commission (NWPC);

WHEREAS, the Regional tripartite Wages and productivity Board-IX (Board) issued Wage Order No. RIX-16 that took effect on September 9, 2010, wherein Section 1 (a) thereof provides that, "Upon effectivity of this Order, the P15.00 COLA as prescribed by Wage Order No. RIX-15 is hereby integrated into the basic minimum wage"; and, Section 1 (b) provides that, "Upon effectivity of this Order, the Minimum Wage Rates shall be increased by P15.00 per day for all industries and categories under this Order".

WHEREAS, one-year from the effectivity of Wage Order No. RIX-16, the Board, absent any petition for wage hike, muto proprio decided to review the current wage rates; thus, after giving notices to employees' and employers' groups, provincial, city and municipal officials and other interested parties, public hearings were conducted in Ipil, Zamboanga Sibugay Province, on 27 September 2011, and in Zamboanga City, on October 03, 2011;

WHEREAS, as a result of the public hearings and evaluation of the region's political, socio-economic and labor market indicators, the Board finds sufficient basis in adjusting the current minimum wage rates; aEcSIH

NOW, THEREFORE, premises considered, this Board hereby issues WAGE ORDER NO. RIX-17 providing, as follows:

SECTION 1. Amount of Wage Adjustment. —

Upon effectivity of this Order, the Minimum Wage Rates shall be increased by P12.00 per day for all industries and categories under this Order.

SECTION 2. New Minimum Wage Rates. —

Upon effectivity, the New Minimum Wage Rates by category/sector are as follows:

		Basic Wage under	Daily Wage increase	New
		Wage Order	per Wage Order	Minimum
		No. 16	No. 17	Wage Rates
Non-Agricultural
	(includes private hospital, educational	P255.00	P12.00	P267.00
	institutions, security agencies,
	janitorial; and, retail/service
	establishments employing more than
	30 workers )
Agricultural
	(includes rubber-based plantation)
	> Plantation Agricultural Enterprise	230.00	12.00	242.00
	> Non-Plantation Agricultural Enterprise	210.00	12.00	222.00
Retail/Service Establishment	235.00	12.00	247.00
	employing not more than 30 workers
Cottage/Handicraft	210.00	12.00	222.00

SECTION 3. Coverage. —

The wage increase prescribed herein shall apply to all the minimum wage earners in the private sector in the region, regardless of their position, designation or status and irrespective of the method by which their wages are paid.

This Wage Order shall not cover: household or domestic helpers, persons in the personal service of another, including family drivers, and workers in registered Barangay Micro Business Enterprises (BMBE's) with Certificates of Authority pursuant to Republic Act 9178. SIaHDA

SECTION 4. 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 of work a day.

SECTION 5. 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 gain-sharing programs. Accordingly, the Board shall provide the necessary studies and technical assistance pursuant to Republic Act No. 6971, otherwise known as the "Productivity Incentives Act of 1990."

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

SECTION 7. Wages of Special Group of Workers. —

Wages of apprentices under Apprenticeship Agreement and learners under Learnership Agreement shall in no case be less than seventy five percent (75%) of the applicable minimum wage rates prescribed in this Wage 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 minimum wage rates.

All qualified workers with disability shall receive the prescribed minimum wage rates pursuant to R.A. 7277.

SECTION 8. 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 applicable minimum wage rates prescribed herein. However, payment of any difference shall be given starting School Year 2012-2013. DcTSHa

Private educational institutions which have not increased their tuition fees for School Year 2011-2012 may defer compliance with the provisions of this Wage Order until School Year 2012-2013.

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

SECTION 9. Application to Contractors. —

In case of contracts for construction projects and for security, janitorial and similar services, the prescribed adjustment in the wage rates of the workers 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 wage increase, the construction/service contractor shall be jointly and severally liable with his principal or client.

SECTION 10. Application to Industries Whose Revenues are Regulated by Law. —

Industries whose revenues are regulated by law such as arrastre, transportation, utilities, etc., shall comply with this Wage Order immediately upon approval of an adjustment in their rates by the concerned government agencies but not later than six (6) months from effectivity of this Order.

SECTION 11. Mobile and Branch Workers. —

The minimum wage rates of workers who, by the nature of their work have to travel, shall be those applicable in the domicile or head office of their employer.

The minimum wage rates of workers working in branches or agencies of establishments within the region shall be those applicable in the place where they are stationed.

SECTION 12. Transfer of Personnel. — AECacT

The transfer of personnel to areas with lower rates shall in no case be a valid ground for the reduction of the higher wage rates being enjoyed by the worker prior to such transfer. However, where the worker is transferred to an area with higher minimum wage rate, the employee shall be entitled to the higher minimum wage rate in that region.

SECTION 13. Creditable Wage Increase. —

Wage increases granted by an employer in an organized establishment within six (6) months prior to the effectivity of this Order shall be credited as compliance with the prescribed increase set forth herein, provided that an agreement to this effect has been forged between the parties or a provision in the Collective Bargaining Agreement (CBA) allowing creditability exists. In the absence of such agreement or provision in the CBA, any increase granted by the employer shall not be credited as compliance with the increase prescribed in this Order.

In unorganized establishments, wage increases granted by the employer within six (6) months prior to the effectivity of this Order shall be credited as compliance.

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

SECTION 14. Non-Diminution of Benefits. —

Nothing in this Wage Order shall be construed to reduce existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances and executive orders and/or under any contract of agreement between workers and employers.

SECTION 15. Effects on Existing Wage Structure or Wage Distortion. —

Where the application of the increase in the wage rates under this Order results in distortion of the wage structure within an establishment, the same shall be corrected in accordance with the procedures provided for under Article 124 of the Labor Code, as amended. ScCEIA

SECTION 16. Exemptions. —

Distressed establishments may be exempted from compliance with this Order upon application with and as determined by the Board in accordance with the NWPC Guidelines No. 02, Series of 2007 (Amended Rules on Exemption). The extent and duration of exemption shall be for a period of one-year.

SECTION 17. 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 18. Effects of the Filing of the 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 or adjustment to employees affected by this Order in the event such Order is affirmed.

SECTION 19. 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 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 20. Penal Provision. —

Any person, corporation, trust or firm, partnership, association, or entity which refuses or fails to pay the prescribed minimum wage rates in accordance with this Order shall be subject to the penal provisions pursuant to RA 6727, as amended by RA 8188.

SECTION 21. 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. EHSADa

SECTION 22. Freedom to Bargain. —

This Order shall not be construed to prevent workers in particular firms or enterprises or industries from bargaining for higher wages with their respective employers.

SECTION 23. Reporting Requirement. —

Any person, company, corporation, partnership or any entity engaged in business shall submit annually 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 Commission.

SECTION 25. *  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 26. Separability Clause. —

If, for any reason, any section or provision of this Wage Order is declared unconstitutional or illegal, the other provisions or parts hereof shall remain valid.

SECTION 27. Implementing Rules and Regulations. —

The Board shall issue the necessary implementing rules and regulations of this Wage Order subject to the approval of the Secretary of the Department of Labor and Employment.

SECTION 28. Effectivity. —

This Wage Order shall take effect fifteen (15) days from the date of publication in a newspaper of general circulation in the region.

APPROVED this 27th day of October 2011. cAEDTa

 

(SGD.) EDGAR B. LIMMember, Employers' Representative

 

(SGD.) JOSE J. SUANMember, Labor Representative

 

(SGD.) ROBERTO G. VALERIOMember, Employers' Representative

 

(SGD.) REY ANTHONY D. TRIOMember, Labor Representative

 

(SGD.) ARTURO G. VALEROVice-Chairman, National Economic and Development Authority

 

(SGD.) NAZRULLAH B. MANZURVice-Chairman, Department of Trade and Industry

 

(SGD.) PONCIANO M. LIGUTOMRegional Board Chairman