Setting the New Minimum Wage in the Region

September 29, 2000

WAGE ORDER NO. IV-07

SETTING THE NEW MINIMUM WAGE IN THE REGION

WHEREAS, the basic purposes of the minimum wage as a safety net is to advance the living standards of low income workers who are unable to keep up or adjust their income on their own given the erosion of said income due to inflation;

WHEREAS, while the safety net requirement as a "core" standard is needed to influence market outcomes and protect vulnerable workers, it should at the same time succeed in taking advantage of new market opportunities and not impede the inflow of capital nor the competitive management of the changing environment; EaDATc

WHEREAS, the long-term regional aspiration is to put in place a framework for a wage policy that complements informal and rural labor markets, support an effective system of industrial relations, provide safeguard for the vulnerable, avoid biases that favor the relatively well-off worker and obviate obstacles to facilitate the transition to a more market-based and internationally integrated pattern of development;

WHEREAS, given the emerging global environment, the Board's twin responsibilities are to promote the imperatives of being a low-cost producer and at the same time protecting workers income;

WHEREAS, a Regional Consultative Workshop on the regional wages and productivity agenda was held 15 September 2000 in Calamba, Laguna to prioritize and identify actionable issues on wages and productivity;

WHEREAS, the spatial configuration of the Region is marked by heterogeneity with areas classified as:

a. Extended Metropolitan Area or highly urbanized and industrialized areas in the Region geographically contiguous to Metro Manila and whose development approximates that of the National Capital Region;

b. Growth Corridor Areas or rapidly urbanizing and industrializing parts of the Region strategically located near Metro Manila; ECaITc

c. Emerging Growth Areas or areas with predominantly rural/agricultural resource potential located at/or near the rapidly urbanizing and industrializing parts of the Region and the large Metro Manila markets; and

d. Resource Based Areas with predominantly rural/agricultural resource potential far from regional and Metro Manila markets.

WHEREAS, this issuance is rational, consistent and progressive within the context of existing economic and social environment;

NOW, therefore by virtue of the power and authority vested under Republic Act No. 6727, known as the Wage Rationalization Act, the Regional Tripartite Wages and Productivity Board of Region IV hereby issues this Wage Order:

SECTION 1. Amount of Minimum Wage. — The daily minimum wage(s) of workers in the Region shall be:

			SECTOR		RETAIL & SERVICE
	NON-	AGRICULTURE		COTTAGE &	ESTABLISHMENTS
AREA	AGRI-	PLANTATION	NON-	MICRO-	Employing not more
	CULTURE		PLANTATION	ENTERPRISES	than 10 workers
EXTENDED METROPOLITAN AREA
CAVITE:
Bacoor, Cavite City, Dasmariñas,	217.00	192.00	172.00	180.00	112.00
GMA, Imus, Rosario, Carmona,
Gen. Trias
RIZAL:
Antipolo, Cainta, Rodriguez, Tanay,	217.00	192.00	172.00	180.00	112.00
Taytay
LAGUNA:
Biñan, Cabuyao, Calamba, Los Baños,	217.00	192.00	172.00	180.00	112.00
San Pablo City, San Pedro, Sta. Cruz,
Sta. Rosa
GROWTH CORRIDOR AREA
CAVITE:
Indang, Kawit, Naic, Tanza, Ternate,	210.00	185.00	165.00	173.00	107.00
Noveleta, Silang, Tagaytay City,
Trece Martires
RIZAL:
Angono, Binangonan, Pililia, San Mateo	210.00	185.00	165.00	173.00	107.00
LAGUNA:
Paete, Pakil	210.00	185.00	165.00	173.00	107.00
BATANGAS:
Balayan, Batangas City, Bauan,	210.00	185.00	165.00	173.00	107.00
Calaca, Lemery, Lipa City, Nasugbu,
San Juan, San Pascual, Sto. Tomas,
Tanauan
QUEZON:
Candelaria, Lucena City, Sariaya, Tiaong	210.00	185.00	165.00	173.00	107.00
EMERGING GROWTH AREA
CAVITE:
Alfonso	206.00	181.00	161.00	169.00	105.00
RIZAL:
Cardona, Morong, Teresa	206.00	181.00	161.00	169.00	105.00
LAGUNA:
Alaminos, Bay, Calauan, Cavinti,	206.00	181.00	161.00	169.00	105.00
Kalayaan, Liliw, Luisiana, Lumban,
Mabitac, Majayjay, Nagcarlan,
Pagsanjan, Pangil, Pila, Rizal,
Siniloan, Sta. Maria, Victoria
BATANGAS:
Calatagan, Cuenca, Ibaan, Lian, Mabini,	206.00	181.00	161.00	169.00	105.00
Padre Garcia, Rosario, Taal, Tingloy,
Tuy, San Jose, Taysan
QUEZON:
Atimonan, Calauag, Guinayangan,	188.00	168.00	148.00	156.00	98.00
Gumaca, Infanta, Lukban, Mauban, Mulanay,
Pagbilao, Real, Tagkawayan, Tayabas,
Lopez
MARINDUQUE:
Sta. Cruz	188.00	168.00	148.00	156.00	98.00
OCC. MINDORO:
San Jose	188.00	168.00	148.00	156.00	98.00
OR. MINDORO:
Calapan	188.00	168.00	148.00	156.00	98.00
PALAWAN:
Puerto Princesa City	188.00	168.00	148.00	156.00	98.00
RESOURCE BASED AREA
CAVITE:
Amadeo, Gen. Aguinaldo, Magallanes,	202.00	177.00	157.00	165.00	103.00
Maragondon, Mendez-Nuñez
RIZAL:
Baras, Jala-Jala	202.00	177.00	157.00	165.00	103.00
LAGUNA:
Famy, Magdalena	202.00	177.00	157.00	165.00	103.00
BATANGAS:
Agoncillo, Alitagtag, Balete, Laurel, Lobo,	202.00	177.00	157.00	165.00	103.00
Malvar, Mataas na Kahoy, San Luis,
San Nicolas, Sta. Teresita, Talisay
QUEZON:
Agdangan, Alabat, Buenavista, Burdeos,	184.00	164.00	144.00	152.00	96.00
Catanauan, Dolores, Gen. Nakar, Jomalig,
Macalelon, Padre Burgos, Panukulan,
Patnanungan, Perez, Pitogo, Plaridel, Polilio,
Quezon, Sampaloc, San Andres, San Antonio,
San Francisco, San Narciso, Unisan, Gen. Luna
MARINDUQUE:
Buenavista, Boac, Gasan, Mogpog, Torrijos	174.00	159.00	139.00	147.00	96.00
OCC. MINDORO:
Calintaan, Looc, Lubang, Magsaysay,	174.00	159.00	139.00	147.00	96.00
Paluan, Rizal, Sablayan, Abra de Ilog,
Mamburao, Sta. Cruz
OR. MINDORO:
Baco, Gloria, Mansalay, Pola, Puerto Galera,	174.00	159.00	139.00	147.00	96.00
Roxas, San Teodoro, Socorro, Victoria, Bansud,
Bongabong, Bulalacao, Naujan, Pinamalayan
PALAWAN:
Aborlan, Agutaya, Araceli, Balabac, Busuanga,	174.00	159.00	139.00	147.00	96.00
Cagayancillo, Culion, Cuyo, Dumaran, El Nido,
G. Abordo, Magsaysay, Narra, Quezon, Rizal,
Roxas, San Vicente, Taytay, Bataraza, Brooke's
Point, Coron
ROMBLON:
Alcantara, Banton, Cajiocan, Calatrava,	174.00	159.00	139.00	147.00	96.00
Concepcion, Corcuera, Ferrol, Looc, Magdiwang,
Odiongan, Romblon, San Agustin, San Andres,
San Fernando, San Jose, Sta. Fe, Sta. Maria
AURORA:
Casiguran, Dilasag, Dinalungan, Dingalain,	174.00	159.00	139.00	147.00	96.00
Dipaculao, Maria Aurora, San Luis, Baler

All workers covered by this Wage Order receiving less than the prescribed minimum wage(s) shall be adjusted at least to the new daily minimum wage rates prescribed herein. SDaHEc

SECTION 2. On Coverage. — The minimum wage rates prescribed under this Order shall apply to all covered employees 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, except household or domestic helpers, family drivers and persons in the personal service of another.

SECTION 3. Basis of Minimum Wage. — The minimum wage prescribed under this Order shall be for the normal working hours, which shall not exceed eight hours work a day.

SECTION 4. Application to Workers Paid by Results. — All workers paid by result, including those who are paid on piece work, takay, pakyaw or task basis, shall be entitled to receive the prescribed minimum wage rates for the normal working hours which shall not exceed eight (8) hours work a day, or a proportion thereof for working less than the normal working hours.

SECTION 5. Application to Special Groups of Workers. — Wages of apprentices and learners shall in no case be less than seventy-five percent (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 minimum wage. STIcaE

SECTION 6. Application to Private Educational Institutions. — In the case of private educational institutions, implementation of the Wage Order shall be deferred until tuition fees are increased but such deferment shall not be for more than one school year.

SECTION 7. Application to Electric Cooperatives, Port Services and Local Water Districts Subject to Government Regulatory Control. — For establishments as enumerated whose fees/product or service pricing are subject to government regulatory control, the prescribed minimum wage shall be applicable upon approval of their application for increase in fees/rates by the government agency concerned, but in no case will this temporary deferment be more than one year.

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 principals or clients of the construction/service contractor and the contract shall be deemed amended accordingly. In the event, however, that 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. Application to Exporters. — For establishments in the Export Industry which earn at least fifty percent (50%) of its normal operating revenues from export sales and whose product pricing is computed using labor costs based on previous mandated minimum wage rates, the effectivity of minimum wage rates under this Order shall be deferred but shall not be for a period of more than one year. DEICTS

Allowable length of period of deferment grant shall be based on the weighted value or volume of each specific contract with the time and/or expected time of receipt of payment of each specific contract in proportion to the total contract value or volume for a one-year period plus thirty day payment lag.

In the case of establishments eligible for deferment, a written internal agreement on the manner of deferment as agreed between employers and employees shall take precedence over any guidelines specified in the Order and its Implementing Rules provided said agreed deferment does not exceed one year.

SECTION 10. Application to Transfers, Mobile or Multisite Employees. — In cases where the establishment may have branches or multiple sites in different parts of the region or where its headquarters is outside the region, the applicable rate is the rate of the particular city/municipality where the employee is based. In cases of mobile employees, the home base rate shall apply. In cases of transfer from a high rate city/municipality to a lower rate city/municipality, the higher rate shall continue to be applied.

SECTION 11. Exemption. — Upon application with and as determined by the Regional Board in accordance with the applicable rules and regulations, distressed establishments as defined in the NWPC Guidelines No. 01, Series of 1996 (Rules on Exemption) may be exempted. ITESAc

The Regional Board has the option to grant full or partial exemption as warranted.

Whenever an application for exemption has been filed with the Regional Board, action by the Regional Office of the Department of Labor and Employment on any complaint for alleged non-compliance with this Order shall be deferred pending resolution of the application for exemption by the Regional Board.

In the event that an application for exemption is not granted, covered workers and employees shall receive the appropriate compensation due them as provided for in this Order plus interest of one percent (1%) per month retroactive to the effectivity of this October.

SECTION 12. Effect of Application for Exemption. — An application for exemption duly filed shall have the effect of deferring any action on any complaint for non-compliance with the Order until resolution of the application by the Regional Board. cACDaH

In case the application for exemption is not approved, covered employees/workers of the applicant-establishment shall be paid the mandated wage/COLA increase under this Order plus one (1) percent simple interest per month retroactive to the effectivity of this Order.

SECTION 13. 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 14. Effect of Filing of Appeal. — The filing of the appeal does not operate to stay the Order unless the party appealing such Order shall file with the Commission the corresponding increase to employees affected by the Order in the event such Order is affirmed.

SECTION 15. Creditability Proviso. — All forms of basic wage and/or salary increases, regardless of nature, provided they bring the actual wage and/or salary to the new minimum wage rates and provided further the resultant are equal to or greater than the minimum wage rates established under this Order are deemed creditable.

Future wage and/or salary increases up to three (3) months from the effectivity of this Wage Order may be accelerated and shall be deemed creditable as compliance to this Wage Order provided the resultant is equal to or greater than the minimum wage rates established under this Order.

Where said increases are less than the prescribed minimum wage rates in the Order, the employer shall pay the difference. TaDSHC

SECTION 16. Effects on Existing Wage Structure. — Wage/salary distortions and/or severe compression that may result as a consequence of this Order shall be addressed through mutual agreement by the employer and its employees or their representative unions.

Advisory formulate to correct distortions or severe compression are annexed to this Order as possible alternatives for the parties to consider. (Annex A).

The annexed formulae are neither compulsory nor mandatory in nature and any other agreement the parties may adopt shall take precedence to these formulae.

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

Disputes that may arise as a result of this Order shall be resolved in accordance with Article 124 of the Labor Code as amended. CcADHI

SECTION 17. 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 18. 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 19. Penal Provisions. — Any employer who refuses or fails to pay the corresponding rates provided under this Order shall be subject to the penalties under R.A. 6727 as amended by R.A. 8188.

SECTION 20. 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.

SECTION 21. 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 22. 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, 2001 and every year thereafter in accordance with the form prescribed by the Commission. cDAITS

SECTION 23. Repealing Clause. — All laws, orders, issuances, rules and regulations, or parts thereof inconsistent with this Wage Order are hereby repealed, amended, or modified accordingly.

SECTION 24. Separability Clause. — If for any reason, any section or provision of this Order is declared unconstitutional or invalid, the other provisions or parts shall remain valid.

SECTION 25. Implementing Rules. — The Regional Board shall prepare the necessary rules and regulations to implement this Order, subject to the approval of the Secretary of Labor and Employment.

SECTION 26. Effectivity. — This Order shall take effect fifteen (15) days after its publication in at least one newspaper of general circulation in the Region. IESDCH

APPROVED this 29th day of September, in Calamba, Laguna.

(SGD.) ATTY. RICARDO S. MARTINEZ, Sr. CESO III

Chairman

Regional Tripartite Wages and Productivity Board

Region IV

(SGD.) MARILOU Q. TOLEDO

Vice-Chairman

Regional Tripartite Wages and Productivity Board

Region IV

(SGD.) BENJAMIN P. BASQUIÑAS, JR.

Worker Representative

Regional Tripartite Wages and Productivity Board

Region IV

(SGD.) MARCELINO C. PINEDA

Employer Representative

Regional Tripartite Wages and Productivity Board

Region IV

(SGD.) OSKAR D. BALBASTRO

Vice-Chairman

Regional Tripartite Wages and Productivity Board

Region IV

(SGD.) OSCAR M. ACERON

Worker Representative

Regional Tripartite Wages and Productivity Board

Region IV

(SGD.) RENATO B. ALMEDA

Employer Representative

Regional Tripartite Wages and Productivity Board

Region IV