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Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Regional Board No. VI
Iloilo City

RULES IMPLEMENTING WAGE ORDER NO. RBVI-15

RULE I
GENERAL PROVISIONS

Pursuant  to  Section 6,  Rule IV  of the  National  Wages and  Productivity Commission Guidelines No. 01, Series of 2007 (Amended Rules of Procedure on Minimum Wage Fixing)  and Section 24 of Wage Order No. RBVI-15, the following Rules are hereby issued for the guidance and compliance by all concerned:

Section 1. TITLE. This shall be known as “The Rules Implementing Wage Order No. RBVI-15”.

Sec.   2. DEFINITION OF TERMS. As used in these Rules:

RULE II
NEW MINIMUM WAGE RATES

Section 1. SIMPLIFICATION OF WAGE STRUCTURES. The wage structure rationalization/simplification in the region pursuant to NWPC Guidelines No. 01, Series of 2005 (Policy Directions and Program Thrusts: 2006-2010) shall be effected in three (3) stages, as follows:

1. Upon effectivity of this Wage Order;
2. On May 1, 2008; and
3. On September 16, 2008.

Sec.  2.  NEW MINIMUM WAGE RATES.   a)  Upon effectivity of this Wage Order, the new minimum wage rates in the region are as follows:

As provided in Wage Order RBVI-15, the following are classified under non-agriculture/industrial/commercial-establishments employing more than 10 workers; sugar mills; hospitals; establishments in highly-urbanized cities component cities and municipalities with capitalization of PhP1M and over.

Non- agriculture/industrial/commercial- establishments employing 10 or less workers and cottage and handicraft. Under agriculture-plantation; a sugar & non-sugar plantation with capitalization of Ph1M and over.

Upon full simplification to take effect on September 16, 2008, the sector/industry classification with the corresponding minimum wage rates shall be as follows:

Sec.  3. COVERAGE. The wage increase prescribed in this Wage Order shall apply to all minimum wage earners in the private sector in the Region, regardless of their position, designation or status of employment and irrespective of the method by which they are paid.

This Wage Order shall not cover household or domestic helpers; persons in the personal service of another, including family drivers, and workers of duly registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority pursuant to Republic Act 9178.

Sec.  4. BASIS OF MINIMUM WAGE RATES. The minimum wage rates prescribed under this Order shall be for the normal working hours which shall not exceed eight (8) hours of 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 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 School Year 2007-2008, may defer compliance with the provisions of this Wage Order until the beginning of School Year 2008-2009.

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

Sec.  6. APPLICATION TO CONTRACTORS. In case of contracts for construction projects, security, janitorial and other similar services, the increase in the minimum wage prescribed herein shall be borne by the principal or client of the contractor and the contract shall be deemed amended accordingly as mandated by the Labor Code.

In the event, however, that the principal or client fails to pay the prescribed wage rates, the construction/service contractor shall be jointly and severally liable with his principal or client.

Sec.  7. WORKERS PAID BY RESULT.  All workers  paid by  result,  including those who  are paid on piecework,  “takay”,  “pakyaw” or  task  basis, shall  receive  not  less  than the applicable minimum  wage rates prescribed under the  Order for the  normal working hours which shall not exceed eight  (8)  hours  work a day, or a  proportion  thereof for  working less than the normal working hours.

The adjusted minimum wage rates for workers paid by result shall be computed in accordance with the following steps:

a. Amount of Increase in AMW*  
    -----------------------------------      =    % Increase
           Previous AMW

b. Existing rate per piece x % of increase = increase in rate/piece          

c.  Existing rate/piece + increase in rate/piece = adjusted rate/piece

*Where AMW is the Applicable Minimum Wage rate.

The wage rate of workers who are paid by result shall continue to be established in accordance with Article 101 of the Labor Code of the Philippines, as amended, and its implementing rules and regulations.

Sec.  8. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of apprentices and learners shall in no case be less than seventy-five (75%) percent of the applicable minimum wage rates prescribed in this Order.

All recognized learnership and apprenticeship agreements entered into before the effectivity of the Order shall be considered automatically modified in so far as their wage clauses are concerned to reflect the adjustments prescribed under the same Order.

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.

Sec.  9. SUGGESTED FORMULA IN DETERMINING THE EQUIVALENT MONTHLY REGIONAL MINIMUM WAGE RATES. Without prejudice to existing company practices, agreements or policies, the following formula may be used as guides in determining the equivalent monthly minimum wage rates:

 Equivalent    =   Applicable Daily Wage Rate (ADR) x 392.50 days
Monthly Rate      -----------------------------------------------------------------
       (EMR)                  12

      (EMR)        =      (ADR x 365 days) / 12    

     (EMR)        =      (ADR x 313 days) / 12

 EMR           =      (ADR x 261 days) / 12

Sec.  10. MOBILE AND BRANCH WORKERS. The minimum wage rates of workers, who, by the nature of their work have to travel, shall be those applicable in the domicile or head office of the employer.

The minimum wage rates of workers working in branches or agencies of establishments  shall be those applicable in the place where they are stationed.

Sec.  11. 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 rates applicable therein.

Sec.  12. APPEAL TO THE COMMISSION. Any party aggrieved by this Wage Order may file an appeal to the Commission within ten (10) calendar days from the publication of the Order. Pursuant to Sec.  5, Chapter III of the Rules Implementing R.A. 6727, 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.

Sec.  13. 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 that such Order is affirmed.

RULE III
EXEMPTIONS

Section  1. WHO MAY BE EXEMPTED. Upon application with and as determined by the Board, based on compliance with the requirements under the applicable rules and regulations, the following may be exempted from the applicability of this Order:

Sec.  2. APPLICATION FOR EXEMPTION AND GENERAL DOCUMENTARY REQUIREMENTS. Within seventy-five (75) days from the date of publication of these Rules, pursuant to NWPC Guidelines No. 02, Series of 2007 (Amended Rules on Exemption), an application for exemption with complete supporting documents as specified in the Rules, and as may be further required by the Board, shall be filed with the Board in three (3) copies by the owner/manager or duly authorized representative of an establishment, in person or by registered mail. The date of mailing shall be deemed as the date of filing.

Failure to submit the required supporting documents within the said prescribed period will serve as sufficient basis for the dismissal of the application for exemption.

All applications for exemption shall be:

Sec.  3. DURATION AND EXTENT OF EXEMPTION.   Full exemption of one (1) year shall be granted to all categories of establishments that meet the applicable criteria for exemption under Sec.  3 of NWPC Guidelines No. 02, Series of 2007.

However, a partial exemption of 50% with respect to the amount or period of exemption may be granted in the case of distressed establishments pursuant to Sec.  3 of NWPC Guidelines No. 02, Series of 2007.

Sec.  4. CRITERIA AND ADDITIONAL SUPPORTING DOCUMENTS FOR EXEMPTION. In order to determine whether an applicant establishment is qualified for exemption, the following are the criteria and additional supporting documents required:

The Board may further require the submission of other supporting documents pertinent to the determination of Applicant’s eligibility for exemption.

Sec.  5. EFFECT OF FILING OF AN APPLICATION FOR EXEMPTION. Whenever an application for exemption has been filed with the Board, the Regional Office of the Department shall be duly notified. Pending resolution of the said application, action on any complaint for alleged non-compliance with the Order shall be deferred by the Regional Office of the Department.

Sec.  6. APPLICATION FOR PROJECTS/BRANCHES/DIVISIONS. Where the exemption being sought for is for a particular project/branch/division not separately registered and licensed, the consolidated audited financial statements of the establishment shall be used as basis for determining its distressed condition.

Sec.  7. DISTRESSED PRINCIPAL. Exemption granted to a distressed principal shall not extend to its contractor in case of contract(s) for construction, security, janitorial, and/or similar services, with respect to the employees of the latter assigned to the former.

Sec.  8. EFFECT OF DISAPPROVED APPLICATION FOR EXEMPTION. In the event that the application for exemption, as regards any of the categories, is not approved, all covered workers and employees shall be paid the mandated increase due them as provided for under this Order retroactive to the date of its effectivity, plus a simple interest of one (1%)  percent per month.

Sec.  9. MOTION FOR RECONSIDERATION. An aggrieved party may file with the Board, a motion for reconsideration of the decision on the application for exemption, within ten (10) days from receipt of the decision, stating the particular grounds upon which the motion is based, copy furnished the other party and the Regional Office of the Department.

No second motion for reconsideration shall be entertained in any case. The decision of the Board shall be final and executory unless timely and appropriately appealed to the Commission.

Sec.  10. APPEAL. Any party aggrieved by the decision of the Board may file an appeal to the Commission, through the Board, in three (3) legible copies, not later than ten (10) days from receipt of the decision. The appeal must be filed in the manner prescribed by the Commission and must be based on any of the following grounds:

RULE IV
CREDITABLE INCREASE

Section  1. ORGANIZED ESTABLISHMENTS. Wage increases granted by an employer in an organized establishment within three (3) months prior to the effectivity of the Order may 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.

Sec.  2. UNORGANIZED ESTABLISHMENTS. In unorganized establishments, wage increases granted by the employer within five (5) months prior to the effectivity of the Order may be credited as compliance.

Sec.  3. CREDITABLE INCREASES GIVEN IN THE FORM OF ALLOWANCES. Where the increase given by the employer is in the form of allowances, the employer shall integrate the same into the basic wage of the workers.  However, if the amount of the increase is greater than the increase granted under the Wage Order, the employer has the option to integrate partially or in full the allowances earlier given. In the event of partial integration, any excess maybe retained as allowances.

Sec. 4. CREDITABLE INCREASES GIVEN LESS THAN THE PRESCRIBED ADJUSTMENTS. In case the increases given are less than the prescribed adjustments, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases, and those resulting from the regularization or promotion of employees.

RULE V
SPECIAL PROVISIONS

Section  1. EFFECT ON EXISTING WAGE STRUCTURE. In accordance with Article 124 of the Labor Code, 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, such dispute shall be decided by the voluntary arbitrator 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. Pursuant to existing rules, any dispute arising there from 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 any dispute arising from a wage distortion shall not in any way delay the applicability of the increase prescribed in the Order.

Sec.  2. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with the Order shall be filed with the Regional Office of the Department and shall be the subject of enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended.

Sec.  3. PRODUCTIVITY AND OTHER PERFORMANCE INCENTIVE PROGRAMS. 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 and other performance incentive programs.

Sec.  4. CONDUCT OF INSPECTION BY THE DEPARTMENT. In accordance with existing rules, 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/organized establishments, Department inspectors shall always be accompanied by the president or other responsible officer of the recognized collective bargaining unit or of any interested union. In the case of non-unionized/non-organized establishments, a worker representing his fellow employees in the establishment 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.

Sec.  5. NON-DIMINUTION OF BENEFITS. Nothing in this Order shall be construed to eliminate or in any way diminish, or as authorizing the reduction of any existing wage rates, allowances, benefits and supplements of any form under existing laws, decrees, issuances, executive orders, and/or under any contract or agreement between the workers and employers, or employer practices or policies, being enjoyed at the time of the promulgation of this Order.

Sec.  6. 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 Article 126 of the Labor Code, as amended.

Sec.  7. FREEDOM TO BARGAIN. The Order shall not be construed to prevent workers in particular firms or enterprises of industries from bargaining for higher wages and flexible working arrangements with their respective employers.

Sec.  8. PENAL PROVISION.  Pursuant  to  the  provisions of  Sec.  12 of Republic Act No.   6727, as    amended   by   Republic   Act   No.  8188,   any  person,   corporation, trust,   firm, partnership,  association  or  entity which  refuses or  fails  to  pay the prescribed increase in the Order  shall be  punished  by a fine not less than Twenty-Five Thousand (PhP25,000.00) Pesos nor more than One Hundred Thousand (PhP100,000.00)  Pesos or  imprisonment  of not less than two (2) years nor more than four (4) years, or both such fine and imprisonment at the discretion of the court;  Provided,  that  any  person  convicted under  the  Order  shall  not be entitled to the benefits provided under the Probation Law.

The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees; Provided, that payment of indemnity shall not absolve the employer from the criminal liability imposable under the aforementioned Act.

If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed upon the entity's responsible officers, including but not limited to the president, vice-president, chief executive officer, general manager, managing director or partner.

Sec.  9. 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.  10. REPEALING CLAUSE. All orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this Rules are hereby repealed, amended or modified accordingly.

Sec.  11. SEPARABILITY CLAUSE. If any provision or part of these Implementing Rules is declared unconstitutional, or in contrast with existing laws, the other provisions or parts thereof shall remain valid.

Sec.  12. EFFECTIVITY. These Rules shall take effect on 05 October 2007.

            Done in the City of Iloilo, Philippines, September 19, 2007.

Approved this 5th day of November 2007.

(Sgd) ARTURO D. BRION
Secretary
Department of Labor and Employment

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