WHEREAS,
representatives of workers, employers and the Government met at a
National Tripartite Conference at Puerto Azul, Ternate, Cavite, on
August 16 and 17, 1979, for the purpose of considering measures for the
protection of wages, promotion of employment and industrial peace,
ensuring economic viability and growth in the face of the global energy
crisis;chanroblesvirtualawlibrary
WHEREAS, the Conference recommended immediate restoration of the
purchasing power of the effective minimum wage as of April 1979, with
provision for exemption from or deferment of compliance in the case of
temporarily distressed enterprises;chanroblesvirtualawlibrary
WHEREAS, in addition to the current efforts of the Government to hold
down prices, especially those of prime commodities, it is urgently
necessary to act immediately on the recommendation of the Conference in
order to provide timely and adequate relief for the working masses in
the face of rising costs of living;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President and Prime Minister,
by virtue of the powers vested in me by the Constitution of the
Republic of the Philippines, do hereby order and decree:cralaw:red
Section 1. All private employers shall pay their
employees whose wage or salary is not more than P1,500.00 a month, a
monthly additional mandatory emergency living allowance of P60.00
effective September 1, 1979 and another P30.00 a month effective
January 1, 1980, except those engaged in the following:cralaw:red
a. Cottage industries, handicrafts, and shellcrafts;chanroblesvirtualawlibrary
b. Small and medium scale enterprises established
after the promulgation of this Decree shall be exempt for a period of
two years from start-up operations;chanroblesvirtualawlibrary
c. Retail and service enterprises outside
Metropolitan Manila and cities with a population of not more than
150,000; in the case of retail and service enterprises in Metropolitan
Manila and cities with a population of more than 150,000, those
employing not more than 15 workers;chanroblesvirtualawlibrary
d. Non-plantation agriculture and plantations or
agricultural enterprises with an area of not more than 24 hectares in a
locality or employing not more than 20 workers; with respect to the
sugar industry, LOI 829 shall be maintained until further action by the
President;chanroblesvirtualawlibrary
e. Labor-intensive and export-oriented enterprises
engaged in the manufacture of garments, footwear, furniture, as well as
leather and electronics products, until December 31, 1979; provided
employers who have the ability to pay as determined by the Minister of
Labor shall pay;chanroblesvirtualawlibrary
f. Private hospitals outside Metropolitan Manila and
in the case of private hospitals in Metropolitan Manila, those with a
bed capacity of not more than 100; chanroblesvirtualawlibrary
g. Private educational institutions until allowed to
adjust tuition fees; and
h. Employers who have given increases in wages and/or
allowances of at least P60.00 a month on or after August 1, 1979,
whether granted unilaterally or under collective agreement. Those who
have given less than P60.00 shall pay the difference.
Section 2. Where a construction contract entered into
prior to the promulgation of this Decree, is based on payment to
workers employed to carry out the contract, for wages and/or allowances
lower than the amounts provided in this Decree, the owner or principal
or client to the contract shall be responsible to compensate the
contractor such difference for labor cost in the remaining work on the
contract by a corresponding negotiated adjustment in value of the
unaccomplished petition of the contract.
Section 3. For purposes of compliance with this
Decree, fifty per cent of the credited tips and/or service charges may
be included in the computation of the minimum wage and/or allowances in
the hotel and restaurant industry.
Section 4. The Minister of Labor shall issue rules to
implement this Decree. In the case of temporarily distressed or
dislocated enterprises or new enterprises full or fifty per cent
exemption from or deferment of compliance may be granted by the
Minister of Labor upon recommendation of the Ministries concerned. The
Minister of Labor shall create a tripartite advisory committee as may
be needed to assist him in implementing pertinent provisions of this
Decree.
Section 5. The Standing Cabinet Committee shall
monitor the implementation of this Decree and in the performance of its
assigned functions, shall receive and act on any grievance, complaints
on any adverse effects encountered by industry, labor or management
groups, which may be referred to them, subject to guidelines issued by
the President (Prime Minister) after consultation with the ministries
concerned.
Section 6. Violation of this Decree and of the
implementing rules promulgated by the Minister of Labor shall be
punished under the applicable provisions of the Labor Code pertaining
to the non-payment of wages and other benefits. chanroblesvirtualawlibrary
Done in the City of Manila,
this 21st day of August, in the year of Our Lord, nineteen hundred and
seventy-nine.
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