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Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Caraga Region
Butuan City

WAGE ORDER NO. RXIII-08

IMPLEMENTING RULES & REGULATIONS

PROVIDING FOR ADDITIONAL COST OF LIVING ALLOWANCE
IN CARAGA REGION

WHEREAS, under R.A. No. 6727, the Regional Tripartite Wages and Productivity Board-Caraga Region (RTWPB-Caraga), is mandated to periodically review and assess the prevailing wage rates, and to conduct continuing studies in the determination of the minimum wage rates applicable in the region, provinces or industries;

WHEREAS, after a thorough evaluation of the socio-economic factors in the region in accordance with the provisions set forth under NWPC Guidelines No. 01, Series of 2007, the Board has resolved to review motu proprio Wage Order No. RXIII-07;

WHEREAS, the Board, after giving due notice to all concerned sectors, conducted public consultations in San Francisco, Agusan del Sur, Tandag City, Surigao del Sur, Surigao City, Surigao del Norte, and Butuan City on September 18, 2007, September 19, 2007, September 25, 2007, and September 27, 2007 respectively, to determine the propriety of issuing a new wage order;

WHEREAS, the Board felt the need to restore the purchasing power of wages of the workers by providing them with immediate relief to enable them to cope with the rising cost of living without impairing the viability of businesses and industry;

WHEREAS, consistent with the government’s policy of achieving higher level of productivity to preserve and generate jobs 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 programs;

NOW THEREFORE, by virtue of the power and authority vested under Republic Act 6727, as amended, otherwise known as the Wage Rationalization Act, the Regional Tripartite Wages and Productivity Board-Caraga Region hereby issues Wage Order No. RXIII-08.cralaw:red

Section 1. COST OF LIVING ALLOWANCE

The COST OF LIVING ALLOWANCE provided for under Wage Order No. RXIII-07 shall be increased to the amount of EIGHTEEN (Php18.00) PESOS.cralaw:red

Sec.  2. NEW MINIMUM WAGE RATES

Upon the effectivity of this Order, the daily minimum wage rates applicable to workers and employees in the private sector in Caraga Region shall be as follows:

*Total Daily Minimum Wage Rate

Sec.  3. COVERAGE

The wage increase prescribed under this Order shall apply to the MINIMUM WAGE EARNERS in the private sector in Caraga Region, regardless of their position, designation or status and irrespective of the method by which their wages are paid.

Not covered by the provisions of this Order are household or domestic helpers, persons employed in the personal service of another, including family drivers and workers in registered Barangay Micro Business Enterprises (BMBE) with Certificates of Authority in accordance with RA 9178.

Sec.  4. BASIS OF PAYING 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.

Sec.  5. 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 SY 2007-2008 shall be considered compliance with the increase set forth herein; provided that if such increase is less than the prescribed adjustment, the employer shall pay the difference in the School Year 2008-2009.cralaw:red

Private educational institutions, which have not increased their tuition fees for the School Year 2007-2008 may defer compliance with the provisions of this Order until the beginning of School Year 2008-2009.

In any case, all private educational institutions shall implement the wage rates prescribed herein starting School Year 2008-2009. 

Sec.  6. APPLICATION TO CONTRACTORS

In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed increases shall be borne by the principals of the construction/service contractors and the contract shall be deemed amended accordingly. In the event however, that the principals fail to pay the prescribed minimum wage, the construction/service contractors shall be jointly and severally liable with the principals.

Sec.  7. WORKERS PAID BY RESULTS

All workers paid by results, including those who are paid on piece work, takay, pakyaw or task basis, shall be entitled to receive not less than the prescribed daily minimum wage for eight (8) hours work day, or a proportion thereof for working less than eight (8) hours.

Sec.  8. WAGES OF SPECIAL GROUPS OF WORKERS

Wage of apprentices and learners shall in no case be less than seventy five percent (75%) of the applicable minimum wage rates. All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automatically modified insofar as their wage provisions are concerned to reflect the prescribed wage rates.

Sec.  9. PRODUCTIVITY-BASED WAGES

To attain higher levels of productivity for competitiveness, to preserve and generate gainful employment and to augment the wages of workers, business enterprises are encouraged to adopt productivity improvement and gainsharing programs.

Sec.  10. EXEMPTIONS

The following may be exempted from the applicability of this Order upon application with and as determined by the Board in accordance with NWPC Guidelines No. 02, Series of 2007 (The Rules on Exemption).cralaw:red

1. Distressed Establishments
2. Retail/Service establishments regularly employing Not more than 10
3. New Business enterprises (NBEs)
4. Establishments adversely affected by natural calamities

Sec.  11. APPEAL TO THE COMMISSION

Any party aggrieved by the Order issued by the Board may file an appeal with the Commission within 10 calendar days from the publication of this Order.

Sec.  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.

Sec.  13. EFFECTS ON EXISTING WAGE STRUCTURE

Where the application of the increases in the wage rates under Sec.  2 hereof, 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.cralaw:red

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

Sec.  14. 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.

Sec.  15. COMPLAINTS FOR NON-COMPLIANCE

Complaints for non-compliance with the wage increase prescribed under this Order may be filed with the Provincial/Regional Office of the Department of Labor and Employment (DOLE) and shall be the subject of enforcement proceedings under Art. 128 and 129 of the Labor Code, as amended, without prejudice to criminal prosecution which may be undertaken against those who fail to comply.

Sec.  16. NON-DIMINUTION CLAUSE

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 any contract or agreement between the workers and employers.

Sec.  17. 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.

Sec.  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 proceeding before the Board as provided for under RA 6727.

Sec.  19. PENAL PROVISIONS

Any person, corporation, trust firm, partnership, association or entity which refuses or fails to pay the prescribed adjustments in this Order shall be subject to the penal provisions under RA 6727 as amended by RA 8188.

Sec.  20. IMPLEMENTING RULES

The Board shall prepare the necessary rules and regulations to implement this Order, subject to the approval of the Secretary of Labor and Employment.

Sec.  21. REPEALING CLAUSE

All orders, issuances, rules and regulations or parts thereof inconsistent with this Order are hereby repealed, amended or modified accordingly.

Sec.  22. SEPARABILITY CLAUSE

If any provisions or part of this Order, or the application thereof to any person or circumstance, is held invalid or unconstitutional, the remainder of the Order or the application of such provision or part thereof to other persons or circumstance shall not be affected thereby.

Sec.  23. EFFECTIVITY

This Order shall take effect fifteen (15) days after its publication in at least one (1) newspaper of general circulation in Caraga Region.

APPROVED: Butuan City, Philippines, September 27, 2007.
 

Published on October 23, 2007 at The Mindanao Gold Star Daily
Effectivity: November 7, 2007.