Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission

REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD

Region VII, Central Visayas

WAGE ORDER NO. ROVII-14

ESTABLISHING NEW MINIMUM WAGE RATES

WHEREAS, Republic Act 6727 otherwise known as the Wage Rationalization Act of 1989 mandated the Regional Tripartite Wages and Productivity Boards to determine and fix the minimum wages in their respective Regions;

WHEREAS, in the performance of the abovecited mandate, the Board issued Wage Order No. ROVII-13 which took effect on November 11, 2007;

WHEREAS, on February 1, 2008 the Board received a Petition seeking for an across-the-board wage increase in the Region in the amount of One Hundred Fifty Pesos and Forty-five centavos (P 150.45) per day, filed by Alliance of Progressive Labor (APL), Nagkakaisang Lakas ng Mangagawa – Katipunan, Shemberg Employees Independent Union (SEIU-NUWHRAIN-APL), Employees Association of Robinsons Supermarket (EARS), Nagkahiusang Mamumuo sa LBF Hardware (NAMA-LBF), Kan-irag Employees Labor Organization (KELO), Bank of the Philippine Islands Employees Independent Union (BPI-EIU), Grand Majestic Convention Center Employees Union (GMCC-EU) and Public Interest Advocacy and Litigation Office, (PIALO, INC.);

WHEREAS, on April 22, 2008 the Board received another petition for an across-the-board wage increase in the amount of One Hundred Fifty Pesos (P 150.00) per day, filed by the Trade Union Congress of the Philippines (TUCP);

WHEREAS, both petitions were filed less than twelve (12) months from the time Wage Order No. ROVII-13 took effect;
 
WHEREAS, relative thereto, Section 3, Rule IV of NWPC Guidelines No. 01 Series of 2007, Amended Rules of Procedures on Minimum Wage Fixing, provide:  “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 goods/services, demand a review of the minimum wage rates as determined by the Board and confirmed by Commission, the Board shall proceed to exercise its wage fixing function even before the expiration of the said period.;

WHEREAS, on April 23, 2008 the Board in its Resolution No. 01 series of 2008 declared the existence of supervening event in the Region and subsequently confirmed by the National Wages and Productivity Commission in its Resolution No. 01, Series of 2008, dated April 24, 2008;

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

Section 1.  AMOUNT OF INCREASE.   Upon effectivity of this Wage Order, the daily minimum wage rates of all private sector workers and employees in all sectors in the region shall be increased by Seventeen Pesos (P17.00) per day.

Section 2.   COVERAGE.   The adjustments prescribed under this Order shall apply to all minimum wage private sector workers and employees in the region, regardless of their position, designation or status of employment and irrespective of the method by which their wages are paid.

Not covered from the provisions of this order are household or domestic helpers; persons in the personal service of another, including family drivers; and workers of registered Barangay Micro Business Enterprises with valid Certificates of Authority.

Section 3.   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 work a day.

Section 4.   WORKERS PAID BY RESULTS.   All workers paid by results, including those who are paid on piecework, “takay” or task basis, shall be entitled to receive not less than the prescribed minimum wage increase per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

Section 5.   WAGES OF 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 wage rates.

All qualified handicapped workers shall receive the full amount of increase in this Order pursuant to R.A. 6727.

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 School Year 2008-2009 shall be considered as compliance with the increase prescribed herein.  However, payment of any shortfall in the wage increase set forth herein shall be covered 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 increase prescribed herein until the beginning of School Year 2009-2010.

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

Section 7.   APPLICATION TO CONTRACTORS.  In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed increases 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 increase or new minimum wage rates, the construction/service contractor shall be jointly and severally liable with his principal or client.

Section 8.   EXEMPTION.   No exemption from compliance with this Wage Order shall be allowed.

Section 9.  PRODUCTIVITY–BASED WAGES.   In order to sustain rising level 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 gain sharing programs.  Accordingly, the Regional Board shall provide the necessary studies and technical assistance pursuant to RA 6971, the Productivity Incentives Act of 1990.

Section 10.  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 11.  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 12.   EFFECTS ON EXISTING  WAGE STRUCTURE.   Where the application of the increases 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 procedure provided for under Art. 124 of the Labor Code as amended.

Section 13.  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 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 14.  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 15.   PENAL PROVISION.   Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the prescribed wage increase/allowance/rates in accordance with this Order shall be subject to the penal provisions under RA 6727, as amended by RA 8188.

Section 16.  PROHIBITION AGAINST INJUCTION.  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 17.   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 18.  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, 2009 and every year thereafter in accordance with the form prescribed by the Commission.

Section 19.  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 20.   SEPARABILITY CLAUSE.  If, for any reason, any section or provision of this Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid.

Section 21.  IMPLEMENTING RULES.   The Board shall prepare the necessary rules to implement this Order subject to approval of the Secretary of Labor and Employment.

Section 22.  EFFECTIVITY.  This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation in the region.

CEBU CITY, PHILIPPINES, May 22, 2008.

      APPROVED:

Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Region VII, Central Visayas

WAGE ORDER NO. ROVII-13
ESTABLISHING NEW MINIMUM WAGE RATES

     WHEREAS, Republic Act 6727 otherwise known as the Wage Rationalization Act of 1989 mandated the Regional Tripartite Wages and Productivity Boards to determine and fix the minimum wages in their respective Regions;

     WHEREAS, on 27 April 2007 and July 4, 2007, the Alliance of Progressive Labor (APL), Shemberg Employees Independent Union, Employee’s Association of Robinson’s Supermarket, the Public Interest Advocacy and Litigation Office (PIALO) thru its Presidents, and the Associated Labor Union - Trade Union Congress of the Philippines (ALU-TUCP), filed with the Regional Tripartite Wages and Productivity Board-Regional Office No. 7, petitions for a P75.00 and P 136.20 across-the-board increase, respectively, in the minimum wages of workers in the Region;

     WHEREAS, the Board after the publication of said petitions and giving notice to all concerned sectors, conducted a region-wide public hearing on July 6, 2007 in Cebu City;

     WHEREAS, as a result of its periodic and continuous review on the socio economic factors, the Board noted an upward movement in the consumer price index (CPI) as a result of continuous changes in the prices of basic commodities from 142.6 in May 2006 to 146.4 in August 2007 or an increase of 2.66%;

     WHEREAS, consistent with the government’s policy of achieving higher levels of productivity to promote economic growth and generate employment, 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 program;

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

     Section 1. AMOUNT OF INCREASE. Upon effectivity of this Wage Order, the daily minimum wage rates of all minimum wage private sector workers and employees in the non-agricultural and agricultural sector in the region except agriculture sugar and sugar mills shall be increased by Nine Pesos (P9.00) per day for Class A areas and Five Pesos (P5.00) per day for Class B, Class C and Class D areas.

     Section 2. APPLICATION TO SUGAR INDUSTRY. Upon effectivity of this Wage Order, the daily minimum wage rates of workers in agriculture sugar and sugar mills regardless of location shall be increased by Five Pesos (P5.00).

     Section 3. COVERAGE. The adjustments prescribed under this Order shall apply to all minimum wage private sector workers and employees in the region, regardless of their position, designation or status of employment and irrespective of the method by which their wages are paid.

     Not covered from the provisions of this order are household or domestic helpers; persons in the personal service of another, including family drivers; and workers of registered Barangay Micro Business Enterprises with valid Certificates of Authority.

     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 work a day.

     Section 5. WORKERS PAID BY RESULTS. All workers paid by results, including those who are paid on piecework, “takay” or task basis, shall be entitled to receive not less than the prescribed minimum wage increase per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

     Section 6. WAGES OF 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 wage rates.

     All qualified handicapped workers shall receive the full amount of increase in this Order pursuant to R.A. 6727.

     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 2007-2008 shall be considered as compliance with the increase prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2008-2009.

     Private educational institutions which have not increased their tuition fees for the School Year 2007-2008 may defer compliance with the increase prescribed herein until the beginning of School Year 2008-2009.

     In any case, private educational institutions shall implement the increase herein starting School Year 2008-2009.

     Section 8. APPLICATION TO CONTRACTORS. In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed increases 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 increase or new minimum wage rates, the construction/service contractor shall be jointly and severally liable with his principal or client.

     Section 9. EXEMPTION. No exemption from compliance with this Wage Order shall be allowed.

     Section 10. PRODUCTIVITY–BASED WAGES. In order to sustain rising level 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 gain sharing programs. Accordingly, the Regional Board shall provide the necessary studies and technical assistance pursuant to RA 6971, the Productivity Incentives Act of 1990.

     Section 11. 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 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. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application of the increases 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 procedure provided for under Art. 124 of the Labor Code as amended.

     Section 14. 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 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 15. 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 16. PENAL PROVISION. Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the prescribed wage increase/allowance/rates in accordance with this Order shall be subject to the penal provisions under RA 6727, as amended by RA 8188.

     Section 17. PROHIBITION AGAINST INJUCTION. 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. 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 19. 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, 2008 and every year thereafter in accordance with the form prescribed by the Commission.

     Section 20. 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 21. SEPARABILITY CLAUSE. If, for any reason, any section or provision of this Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid.

     Section 22. IMPLEMENTING RULES. The Board shall prepare the necessary rules to implement this Order subject to approval of the Secretary of Labor and Employment.

     Section 23. EFFECTIVITY. This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation in the region.

CEBU CITY, PHILIPPINES, September 30, 2007.

APPROVED:

Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Region VII, Central Visayas

RULES IMPLEMENTING WAGE ORDER NO. ROVII-13

     Pursuant to Section 6, Rule IV of the NWPC Revised Rules of Procedure on Minimum Wage Fixing and Section 22 of Wage Order No. ROVII-13, the following Rules are hereby issued for guidance and compliance by all concerned.

Rule I – General Provisions

     Section 1. This Rules shall be known as the “Rules Implementing Wage Order No. ROVII-13”.

     Section 2. Definition of Terms. As used in this rules:

Rule II– Wage Increase

     Section 1. Amount and Effectivity of Increase. Upon effectivity of this Wage Order, the daily minimum wage rates of all private workers and employees in the Non-Agricultural and Agricultural sector except Sugar and Sugar Mills in the region shall be increased by Nine Pesos (P9.00) per day for Class A areas, and Five Pesos (P5.00) per day for Class B, Class C areas and Class D areas.

     Section 2. Application to Sugar Industry. Upon effectivity of this Order, the daily minimum wage rates of workers in Agriculture (Sugar) and Sugar Mills in all areas shall be increased by Five (P5.00) per day.

     Section 3. Coverage.  a). The wage increase prescribed in the Order shall apply to all private sector minimum wage workers and employees in the Region whether agricultural or non-agricultural, regardless of their position, designation, or status and irrespective of the method by which their wages are paid.

     Section 12. Transfer of Personnel. The transfer of personnel to areas outside the Region shall not be a valid ground for the reduction of the wage rates being enjoyed by the workers prior to such transfer. The workers transferred to other regions with higher wage rates shall be entitled to the minimum wage rate applicable therein.

     Section 13. Appeal to the Commission. Any party aggrieved by the Wage Order may file an appeal with the Commission through the Board within ten (10) calendar days from the publication of the Order. The Commission shall decide the appeal within sixty (60) calendar days from the date of filing. The appeal shall be accompanied by a memorandum of appeal which shall state the grounds relied upon and the arguments in support of the appeal.

     Section 14. Effect 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 to employees affected by the Order of the corresponding increase, in the event such Order is affirmed.

Rule III – Exemption

     Section 1. No Exemption. No exemption from compliance with this Wage Order shall be allowed.

Rule IV - Special Provisions

     Section 1. Effect on Existing Wage Structure. Should any dispute arise as a result of wage distortion, the employer and the union shall negotiate to correct the distortions through the grievance procedure under their collective bargaining agreement, and if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing, the voluntary arbitrator shall decide such dispute or panel of voluntary arbitrators within ten (10) calendar days from the time said dispute shall have been referred to voluntary arbitration.

     In cases where there are no collective bargaining agreements or recognized labor unions, the employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and if it remains unresolved after ten (10) calendar days of conciliation, the same shall be referred to the appropriate branch of the National Labor Relations Commission (NLRC). The NLRC shall conduct continuous hearings and decide the dispute within twenty (20) calendar days from the time said dispute is submitted for compulsory arbitration.

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

     Section 2. Complaints for Non-Compliance. Complaints for non-compliance with the Order shall be filed with the Regional Office of the Department having jurisdiction over the workplace and shall be the subject of enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended.

     Section 3. Conduct of Inspection by the Department. The Department shall conduct inspections of establishments, as often as necessary, to determine whether the workers are paid the prescribed wage rates and other benefits granted by law or any Wage Order.

     In the conduct of inspection in unionized companies, Department inspectors shall always be accompanied by the president or other responsible officer of the recognized bargaining unit or of any interested union. In the case of non-unionized establishments, a worker representing the workers in the said company will accompany the inspector.

     The workers’ representative shall have the right to submit his own findings to the Department and to testify on the same if he does not concur with the findings of the labor inspector.

     Section 4. Non-diminution of Benefits. Nothing in the Order and in this Rule 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 the employers.

     Section 5. Productivity-Based Wages. In order to sustain rising level 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 gain sharing programs. Accordingly, the Regional Board shall provide the necessary studies and technical assistance pursuant to RA 6971, the Productivity Incentives Act of 1990.

     Section 6. Penal Provision. Any entity that refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Order shall be punished in accordance with the provisions of Sec. 12, Art 127 of RA 6727 as amended by RA 8188, which provides as follows: