Baldoz announces P15 wage hike for Region 11

MANILA, Philippines – Labor and Employment Secretary Rosalinda Dimapilis-Baldoz on Thursday said the Regional Tripartite Wage and Productivity Board (RTWPB) in Region 11 has granted a P15 wage hike in the daily minimum wage of workers in the private sector.

“The RTWPB-Region 11, after determining the need to restore the lost purchasing power of minimum wage earners in the Davao Region for them to cope with the rising cost of living, but without impairing the productivity and viability of business and industry in the region, has issued Wage Order No. RB XI-17 providing for a new minimum wage rate,” Baldoz said.

“The wage order integrates into the basic wage the cost of living allowance of P15 provided for under a previous wage order, Wage Order No. RB XI-16, and  provides for a P15 cost of living allowance, P5 of which will take effect after the issuance of the new wage order and the balance of P10 to take effect on May 1, 2012,” said Baldoz.

Baldoz was briefed about the order by National Wage and Productivity Commission executive director Ciriaco Lagunzad Jr. and DOLE Region 7 regional director Joffrey Suyao who is chairman of RTWPB-Region 11.

“The new wage hike will take effect upon the confirmation by the NWPC of the new wage order and 15 days after its publication in a newspaper of general circulation,” Baldoz added.

The wage order brings to 10 the regional wage boards that have issued Wage Orders in 2011. These are NCR, Regions III, VI, VII, VIII, IX, X, XI, CARAGA and ARMM.

The amounts of wage increases ordered ranged from P10 per day (ARMM) to P22 per day (NCR), and mostly in the form of cost-of-living allowances, except in Regions VII, IX and XIII.

Based on Wage Order No. RB XI-17, minimum wage earners in the non-agriculture sector in Davao Region will now receive P291 daily wage, while workers in the agriculture sector will receive a daily wage of P281.

On the other hand, retail/service workers in companies with more than 10 workers will receive P291 daily pay, while those in establishments with not more than 10 workers will get P260 in daily pay, after the wage order takes effect.

Effective May 1, 2012, workers in the non-agriculture sector will have a new minimum wage of P301, while those in the non-agriculture sector will receive P291 in daily wage. The daily rate for workers in establishments with more than 10 workers will by then receive P301 daily pay, while those in companies with less than 10 workers will receive P270 in daily pay.

Covered workers

The wage order provides that the prescribed wage rates apply to all workers and employees in the private sector receiving the minimum wage regardless of position, designation, or status of employment, and irrespective of the method by which their wages are paid.  It does not cover household or domestic helpers, family drivers, persons employed in the personal service of another, and workers in registered Barangay Micro Business Enterprises.

The new wage order provides that the minimum wage rates prescribed shall be for normal working hours, which shall not exceed eight hours a day. It also mandates that all qualified handicapped workers shall receive the full amount of the increase, pursuant to Republic Act 7277, or the Magna Carta for Disabled Persons.

The wage order also provides that “workers paid by results, including those who are paid on piecework, “takay”,“pakyaw” or task basis, shall be entitled to receive the prescribed minimum wage rates per eight hours work a day, or a proportion thereof for working less than eight hours.” The wages of apprentices and learners shall in no case be less than 75 percent of the applicable minimum wage rates as prescribed.

Private schools compliance

Under the order, the share of covered workers and employees in the increase in tuition fees for School Year 2011-2012 in private educational institutions shall be considered as compliance with the prescribed increase. However, payment of any shortfall in the new minimum wage rates set forth in the order shall be covered starting School Year 2012-2013.

“Private educational institutions which have not increased their tuition fees for the School Year 2011-2012 may defer compliance with the increase prescribed herein until the beginning of School Year 2012-2013. In any case, all private educational institutions shall implement the increase starting School Year 2012-2013,” reads the order.

In the case of contracts for construction projects, and for security, janitorial, and similar services, the prescribed minimum wage rates in the order shall be borne by the principals or clients of the construction or service contractors, and the contract shall be deemed amended accordingly. In the event, however, that the principal or client fails to pay the new minimum wage rates, the construction or service contractor shall be jointly and severally liable with his principal or client.

Productivity improvement schemes

A more important feature of the order, Baldoz noted, was the provision encouraging businesses to adopt productivity improvement schemes, such as time-and- motion studies, good housekeeping, quality circles, labor-management cooperation, as well as to implement gain-sharing programs in order to sustain rising levels of wages and enhance competitiveness.

“In this regard, the Board shall provide the necessary studies and technical assistance pursuant to Republic Act No. 6971 or the Productivity Incentives Act of 1990,” Baldoz explained.

The new wage order for the region allows no exemption from compliance.

Regional Director Joffrey M. Suyao said the vote of the RTWPB for the new wage order was unanimous, recalling that  Regional Board motu proprio, or on its own, conducted public hearings in Tagum City and Davao City on November 28, 2011 and December 6, 2011, respectively, to determine the propriety of issuing a new wage order.

Besides Suyao, the other signatories to the wage order are Marizon S. Loreto, Department of Trade and Industry-XI regional director and RTWPB vice chairman; Maria Lourdes Lim, National Economic Development Authority-XI regional director and RTWPB vice chairman; Jorge G. Alegarbes and Virginia T. Camus, labor representatives; and Rulfo V.  Asis And Bienvenido D. Cariaga, Management Representatives.  –InterAksyon.com