Wage board exempts 4 firms from paying new minimum pay

THE Regional Tripartite Wages and Productivity Board (RTWPB) has granted the applications for exemption from payment of the new P305 minimum wage order to four business firms after they complied with the requirements under the law.

This was revealed by lawyer Ernesto F. Carreon of the Associated Labor Unions-Trade Union Congress of the Philippines, a member of RTWPB representing labor.

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Those given exemption from paying the new minimum wage are Buto International Corp. in Carmen, Cebu, International Ice Corp. in Talisay City, and Shemberg Corp. and Metabel Corp. in Mandaue City.

Meanwhile, the Provincial Board (PB) said the Department of Labor and Employment (Dole) should monitor the compliance of employers with the 13th month pay to rank-and-file employees.

PB member Arleigh Sitoy, in a resolution approved in mass motion, said all employers are required to pay all their rank and file employees, as mandated in Presidential Decree 851, which was amended as memorandum order 28.

He did not say, however, if he has any knowledge of any company that failed to release the 13th month pay.

Sitoy said the law further states that employers are required to give their employees half of the bonus before the opening of the regular school year, while the other half on or before Dec. 24.

At the Capitol, employees have received their 13th month pay, as well as a P20,000 Christmas bonus.

Cebu Gov. Gwendolyn Garcia released the bonus based on the result of the employees’ performance evaluation.

Those who had poor performance ratings will not receive the bonus, as Garcia challenged them to improve next year.

As to the minimum wage order, Carreon said an applicant corporation is granted full exemption if its deficit of retained earnings will impair 20 percent of the paid up capital stock of the corporation, it is subject to rehabilitation and has a pending application for rehabilitation pending before the Regional Trial Court.

If the deficit of retained earnings will impair only 10 percent, the company will be granted conditional exemption, Carreon said.

“If the applicant-corporation can comply with these requirements in case of full exemption, the term of exemption is one year. If the exemption is conditional, it is good for six months. After this period, they have to pay the P305 daily wage to their workers,” Carreon said.

Carreon said the application for exemption from payment of the minimum wage should be filed within 75 days from the first publication by RTWPB of the guidelines implementing the new wage order.

“In case of violations, it is the function of the Labor Standards Enforcement Division of the Dole to enforce the new wage order,” Carreon said.

On the other hand, Carreon said RTWPB denied the application for exemption filed by Pacific Traders Rattan Corp. because it failed to comply with the requirements.

He said two other applications of Tambuli Beach Resort-East and Tambuli Beach Resort-West were still pending for decision by RTWPB. –Elias O. Baquero and Rizel S. Adlawan, Sun Star