Providing New Minimum Wage Rates in Caraga Region

September 22, 2011

WAGE ORDER NO. RXIII-11

PROVIDING NEW MINIMUM WAGE RATES IN CARAGA REGION

WHEREAS, under R.A. No. 6727 (Wage Rationalization Act), the Regional Tripartite Wages and Productivity Board-Caraga Region(RTWPB-Caraga), is mandated to periodically review and assess the prevailing wage rates, and to conduct continuing studies in the determination of the minimum wage rates applicable in the region, provinces or industries;

WHEREAS, the Trade Union Congress of the Philippines (TUCP) filed on May 18, 2011 a petition for a Seventy five pesos (Php75.00) per day across-the-board and regionwide wage increase in Caraga Region;

WHEREAS, after giving due notice to all concerned sectors, the RTWPB-Caraga conducted public hearings/consultations in San Francisco, Agusan del Sur, Surigao City, Surigao del Norte, and Butuan City on September 13, 2011, September 16, 2011, and September 22, 2011 respectively, to determine the propriety of issuing a new wage order;

WHEREAS, after a thorough evaluation of the socio-economic factors in the region in accordance with the provisions set forth under NWPC Guidelines No. 01, Series of 2007, the RTWPB-Caraga has determined the need to provide workers with immediate relief by providing increase in the Basic Wage without impairing business viability;

WHEREAS, consistent with the government's policy of achieving higher level of productivity to preserve and generate jobs and to augment the income of workers, there is a need to build the capacity of business enterprises to be competitive through productivity improvement and gain sharing programs; IDAaCc

NOW THEREFORE, by virtue of the power and authority vested under Republic Act 6727, the RTWPB-Caraga hereby issues this Wage Order.

SECTION 1. Increase in the Basic Daily Wage Rate. —

Upon effectivity of this Order, the Minimum Daily Basic Wage Rate of covered workers shall be increased by ELEVEN PESOS (Php11.00).

SECTION 2. Increase in Cost of Living Allowance (COLA). —

Upon effectivity of this Order, the COST OF LIVING ALLOWANCE (COLA) shall be increased by FOUR PESOS (Php4.00).

SECTION 3. New Minimum Wage Rates. —

Upon effectivity of this Order, the daily minimum wage rates applicable to covered workers and employees in the private sector in Caraga Region shall be as follows:

Industry/Sector	Basic Wage	COLA	Total
				DMWR*
Agriculture
	Plantation	231	17	248
	Non-Plantation	211	17	228
Non-Agriculture	241	17	258
Retail and Service
	Employing 10 or less	211	17	228
	Employing more than 10 workers	241	17	258
* DMWR = Daily Minimum Wage Rate

 

SECTION 4. Coverage. —

The wage increase prescribed under this Order shall apply to the MINIMUM WAGE EARNERS in the private sector in Caraga Region, regardless of their position, designation or status and irrespective of the method by which their wages are paid. ASICDH

Not covered by the provisions of this Order are household or domestic helpers, persons employed in the personal service of another, including family drivers and workers in registered Barangay Micro Business Enterprises (BMBE) with Certificates of Authority in accordance with RA 9178.

SECTION 5. Basis of Paying Minimum Wage. —

The minimum wage rates prescribed under this Order shall be for the normal working hours, which shall not exceed eight (8) hours work a day.

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 SY 2011-2012 shall be considered compliance with the increase set forth herein; provided that if such increase is less than the prescribed adjustment, the employer shall pay the difference in the School Year 2012-2013.

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

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

SECTION 7. Application to Contractors. —

In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed increases shall be borne by the principals of the construction/service contractors and the contract shall be deemed amended accordingly. In the event however, that the principals fail to pay the prescribed minimum wage, the construction/service contractors shall be jointly and severally liable with the principals.

SECTION 8. Workers Paid by Results. —

All workers paid by results, including those who are paid on piece work, takay, pakyaw or task basis, shall be entitled to receive not less than the prescribed daily minimum wage for eight (8) hours work day, or a proportion thereof for working less than eight (8) hours. DHITcS

SECTION 9. Wages of Special Groups of Workers. —

Wage of apprentices and learners shall in no case be less than seventy five percent (75%) of the applicable minimum wage rates. All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automatically modified insofar as their wage provisions are concerned to reflect the prescribed wage rates.

SECTION 10. Productivity-Based Wages. —

To attain higher levels of productivity for competitiveness, to preserve and generate gainful employment and to augment the wages of workers, business enterprises are encouraged to adopt productivity improvement and gainsharing programs.

SECTION 11. Exemptions. —

The following may be exempted from the applicability of this Order upon application with and as determined by the Board in accordance with NWPC Guidelines No. 02, Series of 2007 (The Rules on Exemption).

1. Distressed Establishments;

2. Retail/Service establishments regularly employing not more than 10;

3. New Business enterprises (NBEs);

4. Establishments adversely affected by natural calamities.

SECTION 12. Appeal to the Commission. —

Any party aggrieved by the Order issued by the Board may file an appeal with the Commission within 10 calendar days from the publication of this Order.

SECTION 13. Effect of Filing of Appeal. — aITECA

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 14. Effects on Existing Wage Structure. —

Where the application of the increases in the wage rates under Section 2 hereof, 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.

The pendency of a dispute arising from wage distortion shall not in any way delay the applicability of any increase prescribed in this Order.

SECTION 15. Freedom to Bargain. —

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

SECTION 16. Complaints for Non-Compliance. —

Complaints for non-compliance with the wage increase prescribed under this Order may be filed with the Provincial/Regional Office of the Department of Labor and Employment (DOLE) and shall be the subject of enforcement proceedings under Arts. 128 and 129 of the Labor Code, as amended, without prejudice to criminal prosecution which may be undertaken against those who fail to comply.

SECTION 17. Non-Diminution Clause. —

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 any contract or agreement between the workers and employers.

SECTION 18. Reporting Requirement. — DaHcAS

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 Commission.

SECTION 19. Prohibition Against Injunction. —

No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal or other entity against any proceeding before the Board as provided for under RA 6727.

SECTION 20. Penal Provisions. —

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

SECTION 21. Implementing Rules. —

The Board shall prepare the necessary rules and regulations to implement this Order, subject to the approval of the Secretary of Labor and Employment.

SECTION 22. Repealing Clause. —

All orders, issuances, rules and regulations or parts thereof inconsistent with this Order are hereby repealed, amended or modified accordingly.

SECTION 23. Separability Clause. —

If any provisions or part of this Order, or the application thereof to any person or circumstance, is held invalid or unconstitutional, the remainder of the Order or the application of such provision or part thereof to other persons or circumstance shall not be affected thereby.

SECTION 24. Effectivity. —

This Order shall take effect fifteen (15) days after its publication in at least one (1) newspaper of general circulation in Caraga Region. aTHCSE

APPROVED. Butuan City, Philippines, September 22, 2011.

 

(SGD.) MR. JOSELITO V. SORIANOLabor Sector Representative

 

(SGD.) MR. JORGE G. UYManagement Sector Representative

 

(SGD.) MR. ROLANDO C. DAHANGLabor Sector Representative

 

(SGD.) MS. JOCELYN F. YEEManagement Sector Representative

 

(SGD.) DIR. CARMENCITA S. COCHINGCOVice Chairperson-National Economic and Development Authority

 

(SGD.) DIR. BRIELGO O. PAGARANVice Chairperson-Department of Trade and Industry

 

(SGD.) OIC-DIR. OFELIA B. DOMINGOChairperson-Department of Labor and Employment