Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
National Wages and Productivity Commission
Regional Tripartite Wages and Productivity Board
Regional Board No. VIII
Tacloban City

WAGE ORDER NO. RB VIII-15

PRESCRIBING THE GRANT OF ADDITIONAL
COST OF LIVING ALLOWANCE FOR WORKERS IN EASTERN VISAYAS

WHEREAS, the Regional Tripartite Wages and Productivity Board of Eastern Visayas (RTWPB VIII) during its Regular Board Meeting on April 28, 2008 adopted and passed Resolution No. VIII-01, Series of 2008 declaring Supervening Conditions as obtaining in the Region due to increases in the prices of oil and fuel products, basic and prime commodities as well as agricultural products principally rice;

WHEREAS, such declaration of supervening conditions was affirmed by the National Wages and Productivity Commission during its Commission Meeting on April 30, 2008 confirming the existence of such supervening conditions as manifested by the Consumer Price Index and the rising inflation rate in the region;

WHEREAS, a position paper was filed before this Regional Board by the Kilusang Mayo Uno, Eastern Visayas, calling for the grant of a PhP125.00 wage increase across the board for workers in the Region;

WHEREAS, the Trade Union Congress of the Philippines filed on May 13, 2008 a petition for an across the board wage increase in the amount of ONE HUNDRED FIFTY PESOS (P150.00) per day for private sector workers in the region;

WHEREAS, this Regional Board moto proprio conducted Public Consultations in Calbayog City on May 9, 2008, in Ormoc City on May 14, 2008 and a Public Hearing in Tacloban City on May 20, 2008,
 
WHEREAS, the results of the consultations and public hearing as well as review of the socio-economic indicators reveal the need to grant relief to the minimum wage earners in Eastern Visayas without impairing the viability of business in the region;

NOW THEREFORE, by virtue of the power and authority vested under Republic Act 6727, otherwise known as the Wage Rationalization Act, the Regional Tripartite Wages and Productivity Board, Eastern Visayas (RTWPB VIII) hereby issues this Wage Order.

Section 1.  AMOUNT AND EFFECTIVITY OF COLA. Upon effectivity of this Wage Order, private sector minimum wage workers and employees in Eastern Visayas shall receive an additional Cost of Living Allowance in the amount of TEN PESOS (PHp10.00) in addition to the EIGHT PESOS (PhP8.00) per day COLA mandated under Wage Order No. RB VIII-14.

Section 2. NEW DAILY WAGE RATES.  The new daily wage rates in Eastern Visayas are as follows:

    INDUSTRY/SECTOR

Minimum Wage Rates under W.O. No. RB VIII-13 Cost of Living Allowance

New Minimum Wage Rates

  Under W.O. No. RB VIII-14

Under W.O. No. RB VIII-15

NON AGRICULTURE 220.00 8.00 10.00 238.00
COTTAGE/HANDICRAFT 198.00 8.00 10.00 216.00
RETAIL/SERVICE        

Employing 10 workers and below

189.00 8.00 10.00 207.00
AGRICULTURE (NON-SUGAR) 201.00 8.00 10.00 219.00
SUGAR INDUSTRY        

Mills

222.00 8.00 10.00 240.00

Plantation

195.00 8.00 10.00 213.00

Non-Plantation

180.50

8.00

10.00

198.50

Section 3. BASIS OF COLA.  The Cost of Living Allowance under this Order shall be for the normal working hours, which shall not exceed eight (8) hours a day.

            Section 4.  COVERAGE OF THE COLA.  The Cost of Living Allowance under this Order shall be applicable to all covered workers regardless of their position, designation or status of employment.

            Excluded from the coverage of this Wage Order are household or domestic helpers, persons in the personal service of another, including family drivers, and workers in duly registered Barangay Micro Business Enterprises with Certificates of Authority pursuant to Republic Act 9178.

            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 not less than the prescribed Cost of Living Allowance per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours a day.

            Section 6.  COLA OF SPECIAL GROUPS OF WORKERS.  The Cost of Living Allowance of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable COLA prescribed herein.

            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 prescribed COLA herein.

            All qualified handicapped workers shall receive the full amount of the minimum wage rate prescribed herein pursuant to Republic Act No. 7277, otherwise known as the Magna Carta for Disabled Persons.

            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 2008-2009 shall be considered as compliance with the increase prescribed herein.  However payment of any shortfall in the COLA 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 provisions of this Wage Order until the beginning of School Year 2009-2010.

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

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

            Section 9. CREDITABLE WAGE INCREASES.  Wage Increases granted by an employer in an organized establishment within three (3) months prior to the effectivity of the Order shall be credited as compliance with the prescribed increase set forth therein, provided that an agreement to this effect has been forged between the parties or a provision in the Collective Bargaining Agreement allowing creditability exists.  In the absence of such an 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 three (3) months prior to the effectivity of the Order shall be credited as compliance.

            In case the increases given are 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 10. EFFECTS ON EXISTING WAGE STRUCTURE.  Where the application of the new minimum wage rates under this Order 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.

            Section 11. 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 12.  PRODUCTIVITY BASED WAGES.  In order to sustain rising levels of wages and enhance competitiveness, labor and management as partners are encouraged to adopt productivity improvement schemes that will improve the quality of life of workers and in turn enable them to produce more and earn more, such as time and motion studies, good housekeeping, quality circles, labor and management cooperation as well as implement gain-sharing programs.  Accordingly, the Regional Board shall provide the necessary studies and technical assistance pursuant to Republic Act 6971 or the Productivity Incentives Act of 1990.

Section 13. EXEMPTION.  No exemption from compliance with this Wage Order shall be allowed.

            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 in accordance with this Order shall be subject to the penal provisions under RA 6727, as amended by RA 8188.

            Section 16.  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 17.  FREEDOM TO BARGAIN  This Order shall not be construed to prevent workers in particular firms, enterprises or 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 National Wages and Productivity Commission.

Section 19.  REPEALING CLAUSE.  All orders, issuances 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 the 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.

Approved this 20th day of May 2008 at Tacloban City.

 

(Sgd.) HERCULANO A. DUHAYLUNGSOD
Employers’ Representative

(Sgd.) EFREN M. GABRIOLA
Workers’ Representative

(Sgd.) JORGE D. YU
Employers’ Representative
(Sgd.) MIGUEL T. TEZON
Workers’ Representative
(Sgd.) BUENAVENTURA C. GO-SOCO, JR.
Vice-Chairman, NEDA
(Sgd.) CYNTHIA R. NIERRAS
Vice-Chairman, DTI


(Sgd.) FORTER G. PUGUON

Chairman

 

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