Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD NO. 3
San Fernando, Pampanga

 

WAGE ORDER NO. RBIII-15

SETTING THE MINIMUM WAGE IN REGION III

 

           WHEREAS, Republic Act 6727, mandated the Regional Tripartite Wages and Productivity Board-Region III (RTWPB-III) to determine and fix minimum wage rates and periodically review the same in relation to prevailing socio-economic and other conditions in the Region;

           WHEREAS, there is a growing clamor from the various sectors including the President and Congress for the Boards to convene and exercise their wage fixing mandate;

           WHEREAS, Section 3, Rule IV of the NWPC Amended Rules of Procedure on Minimum Wage Fixing provides that any Wage Order issued by the Board may not be disturbed for a period of twelve(12) months) from its effectivity, and no petition for wage increase shall be entertained within the said period.   In the event, however, that supervening conditions, such as extraordinary increase in prices of petroleum products and basic good/services, demand a review of the minimum wage rates, as determined by the Board and confirmed by the Commission, the Board shall proceed to exercise its wage fixing function even before the expiration of said period;

           WHEREAS, to respond to the urgency of the wage issue supported by the results of its overall assessments of the socio-economic condition, i.e. the dramatic and continuing rise in prices of petroleum products, basic goods/services and power rates, resulted to an inflation rate of 8.5%  for March 2008,   higher than the existing rate at the time of the effectivity of the wage order,  the RTWPB III declared the existence of supervening condition in the Region on April 23, 2008 and duly confirmed by the Commission on April 28, 2008 per NWPC Resolution No. 2, series of 2008;

           WHEREAS,  on April 23, 2008, the Mitsumi Workers’ Union-ALU-TUCP filed with the Board a petition for a P80.00 per day across the board wage increase;

           WHEREAS, in response to the wage petition and in compliance with the requirements of the rules on minimum wage fixing, the RTWPB III conducted sectoral consultations on May 9 and May 12, 2008 and public hearings on May 19 and 20, 2008;        

           WHEREAS,  after evaluation of the results of the consultations and public hearings, the RTWPB-III felt the need to provide workers immediate relief from the rising costs of living taking into account the interests of both labor and management as well as the continued and sustained viability of business and industry in Region III;         

           NOW THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727, otherwise known as the Wage Rationalization Act, the Board hereby issues this Wage Order:

           Section   1.    AMOUNT OF INCREASE.   Upon the effectivity of this Wage Order, a cost of living allowance   (COLA) of TEN PESOS (P10.00) per day  and FIVE PESOS (P5.00)  increase in the basic wage shall be granted to all minimum wage earners in the region.   The NINE PESOS (P9.00) COLA under Wage Order No. RBIII-13 shall be integrated into the basic pay upon the effectivity of this Wage Order.

           Section   2.   NEW MINIMUM WAGE RATES.  Upon effectivity of this Wage Order, the new minimum wage rates in the region shall be as follows:
                      

SECTOR

PAMPANGA, BULACAN, TARLAC, BATAAN, ZAMBALES, NUEVA ECIJA

Basic Wage

COLA
under WO RBIII-14

Minimum Wage

 NON-AGRICULTURE
  Establishments with total     assets of P30 million or more P 292.00 P 10.00 P 302.00
  Establishments with total     assets less than of P30 million 284.50 10.00 294.50
 AGRICULTURE
   Plantation 262.00 10.00 272.00
   Non-Plantation 246.00 10.00 256.00
 HOSPITALS
   With 20 or more bed Capacity 283.00 10.00 293.00
   With less than 20 bed capacity 268.00 10.00 278.00
 RETAIL/SERVICE
   With 16 or more workers 281.00 10.00 291.00
   With less than 16 workers 267.00 10.00 277.00
 COTTAGE/HANDICRAFT

246.00

10.00

256.00

 


SECTOR A U R O R A   P R O V I N C E

Basic Wage  

COLA
under WO RBIII-14

Minimum Wage Under WO RBIII-14

 NON-AGRICULTURE P 241.00 P 10.00 251.00
 AGRICULTURE
   Plantation 226.00 10.00 236.00
   Non-Plantation 206.00 10.00 216.00
 RETAIL/SERVICE
   Employing not more than 10       workers 163.00 10.00 173.00
 COTTAGE/HANDICRAFT 214.00 10.00 224.00

 

           Section     3.   COVERAGE.  The increase provided herein shall apply to all minimum wage earners/workers and employees in the private sector in Region III regardless of position, designation or status of employment and irrespective of the method by which their wages are paid.  Not covered in this Wage Order are household or domestic helpers and persons employed in the personal service of another including family drivers and workers of Barangay Micro Business Enterprises with Certificates of Authority, pursuant to   R.A. 9178.

           Section   4.  BASIS OF INCREASE.  The wage increase  prescribed under the Wage Order shall be for the normal working hours, which shall not exceed eight (8) hours work a day.     
      
           Section    5.   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 Iincrease in this order per eight (8) hours a day, or a proportion thereof for working less than eight (8) hours.

           Section   6.   SPECIAL GROUP OF WORKERS.  The minimum wage rate of apprentices and learners shall in no case be less than seventy-five percent (75%) of the prescribed minimum wage rate under Section 2 of this Wage Order.

            All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automatically modified in accordance with the Wage Order.
           
           Section    7.   PRODUCTIVITY-BASED WAGES.   In order to sustain rising levels of wages and enhance competitiveness, businesses are strongly encouraged to adopt productivity improvement schemes, such as, time and motion studies, good housekeeping, quality circles, labor-management cooperation, as well as implement gainsharing programs. Accordingly, the Regional Board shall provide the necessary studies and technical assistance pursuant to RA 6971, the Productivity Incentives Act of 1990.

           Section     8.   PRIVATE EDUCATIONAL INSTITUTIONS.  In the case of  private educational institutions, the share of workers and employees covered in the increase in tuition fees for School Year 2008-2009 shall be considered as compliance with this Wage Order.  Where the share of the workers and employees is less than what is provided herein, the employer shall pay the difference starting School Year 2009-2010.

            Private educational institutions which have not increased their tuition fees for the School Year 2008-2009 may defer compliance  with the provisions of this Wage Order until School Year  2009-2010.

            In any case, all private educational institutions shall implement the increase prescribed herein starting School Year 2009-2010.


           Section    9.   CONTRACTORS.  In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed wage increase of the workers shall be borne by the principals or clients of the construction/service  contractors  and  their  contracts shall be deemed amended accordingly.  In the event, however, that the principals or clients fail to pay the prescribed increases, the construction/service contractors shall be jointly and severally liable with his principal or client.

           Section   10.   EXEMPTION.  Upon application with and as determined by the Board,  the following may be exempt from the applicability of this Wage Order, subject to applicable rules and regulations issued by the Commission:
 

  • Retail and service establishments employing not more than ten (10) workers at the time of the publication of this Wage Order;
  • Distressed Establishments, as defined in the NWPC Guidelines No. 02, Series of  2007 ;

  • Garment Exporting  firms, including indirect exporters, with at least fifty percent (50%) export sales and with forward contracts with their foreign buyers/principals entered into on or twelve (12) months before the effectivity of this Wage Order and without escalation clauses with respect to the contract prices thereof, may be exempt during the lifetime of the said contract but not to exceed twelve (12) months from effectivity of this Wage Order.

           Section 11.    APPEAL TO THE COMMISSION.  Any party aggrieved by this Wage Order may file a verified appeal to the Commission  through the Board within ten (10) calendar days from the publication of the Order.

           Section 12.   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 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.   CREDITING.  Increases granted by an employer within ninety (90) days prior to the effectivity of this Wage Order shall be credited as compliance with the Order, provided that,  where such  increases are less than  what is provided in the Order, the employer shall pay the difference.

           Such increases shall not include CBA anniversary wage increases, merit wage increases and those resulting from the regularization or promotion of employee, unless there is an agreement expressly allowing such crediting.

           Section   14.   EFFECTS ON EXISTING WAGE STRUCTURE.   Where the application of the increase prescribed in this Wage Order results in distortions in the wage structure within the establishment, the wage distortions may be resolved using the following formula: 

Amount  of Increase due to distortion
         

Minimum Wage Under    
Wage Order No. RBIII-13Present Salary

X Amount of increase
in  WO RBIII-14 
= Amount  of Increase due to distortion
         

           Section  15.    COMPLAINTS FOR NON-COMPLIANCE.  Complaints for non-compliance with this Wage 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  16.  NON-DIMINUTION OF BENEFITS.  Nothing in this Wage Order shall be construed to reduce any existing wage rates, allowances, and benefits of any form under existing laws, decrees, issuance, executive orders and/or under any contract or agreement between workers and employers.

           Section  17.   PENAL PROVISION.   Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the prescribed wage rates in accordance with this Wage Order shall be subject to the penal provisions under R.A. 6727, as amended by R.A. 8188.

           Section  18.    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  19.   FREEDOM TO BARGAIN.  This Wage 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  20.  REPORTING REQUIREMENTS.  Any person, company, corporation, partnership, or any entities engaged in business shall submit a verified itemized listing of their labor component to the Board not later than January 31, 2009 and every year thereafter in accordance with the form prescribed by the Commission.
      
           Section   21.   REPEALING CLAUSE.  All orders, rules, and regulations, or parts thereof inconsistent with the provision of this Wage Order are hereby repealed, amended or modified accordingly.
                             
           Section   22.   SEPARABILITY CLAUSE.  If, for any reason, any section or provision of this Wage Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid.

           Section  23.   IMPLEMENTING RULES.  The Board shall prepare the necessary rules to implement this Wage Order subject to the approval of the Secretary of Labor and Employment.
    

           Section   24.   EFFECTIVITY.   This Wage Order shall take effect fifteen (15) days after its publication in at least one (1) newspaper of general circulation in the region.
     

           APPROVED  this  21st day of May 2008, City of San  Fernando,  Pampanga.

 

(Sgd.) JOSE T. DE LEON
Board Member
(Sgd.) FLORDELIZA MARIA REYES-RAYEL
Board Member

                        I Dissent:

(Sgd.) RAUL C. REMODO*
Board Member

 

                       I Dissent:

(Sgd.) EDGAR B. VENTURA*
Board Member

(Sgd.) REMIGIO A. MERCADO
Vice-Chairperson
(Sgd.) BLESILA A. LANTAYONA
Vice-Chairperson
(Sgd.) NATHANIEL V. LACAMBRA
Chairperson

* We dissent.  Amount of increase is insufficient and there should be no exemption.

 

Date of Publication:   June 01,2008 , Sun-Star, Pampanga
Date of Effectivity :  June 16, 2008

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