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Republic of the Philippines Department of Labor and Employment National Wages and Productivity Commission REGIONAL TRIPARTITE WAGES

AND PRODUCTIVITY BOARD Region II Tuguegarao City

WAGE ORDER NO. RTWPB-II-15

INCREASING THE MINIMUM WAGE RATES OF WORKERS IN THE PRIVATE SECTOR IN REGION 2
WHEREAS, under Republic Act No. 6727 (The Wage Rationalization Act), the Regional Tripartite Wages and Productivity Boards (RTWPBs) are mandated to determine and fix minimum wage rates in their respective regions; WHEREAS, Wage Order No. RTWPB-II-14 having reached its one (1) year maturity period and considering the continual increase on prices of basic goods and services, the Board has deemed it necessary to review, motu propio, the existing minimum wage rates in the region as there is no petition being filed; WHEREAS, as part of its motu propio review, the Board, after due notice to all concerned sectors, conducted consultations/public hearings on April 16, April 17 & April 18, 2012 in Solano for the Province of Nueva Vizcaya, Cauayan City for the Provinces of Isabela and Quirino and in Tuguegarao City for the Provinces of Cagayan and Batanes, respectively, to determine the propriety of issuing a new wage order; WHEREAS, as a result of the studies made on the socio-economic conditions of the region including that of the consultations/public hearings and deliberations conducted, the Board unanimously agreed to increase the minimum wage rates of workers and employees in the private sector without impairing the viability of business and industry; WHEREAS, consistent with the governments policy of achieving higher levels of productivity to promote economic growth and generate employment and to augment the income of workers, there is a need to build the capacity of business enterprises to be competitive through productivity improvement programs; NOW, THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727, the REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARDRegion II hereby issues this Wage Order. SECTION 1. AMOUNT OF INCREASE IN THE DAILY MINIMUM WAGE. Upon the effectivity of this Wage Order, all minimum wage workers and employees in the private sector in Region II shall be granted an increase of Ten Pesos (10.00) per day plus the integration of the fifteen peso (P15.00) per day cost of living allowance (COLA) under Wage Order No. RTWPB-II-10.

The new minimum wage rates in the region shall therefore be as follows:

New Minimum Wage Rates Industry/Sector/province

Isabela 1. Non- Agriculture 2. Agriculture 3. Retail/Service Employing more than 10 Employing not more than 10 Cagayan 1. Non- Agriculture 2. Agriculture 3. Retail/Service Employing more than 10 Employing not more than 10
Nueva Vizcaya

255.00 243.00 247.00 220.00

252.00 240.00 244.00 217.00

1. Non- Agriculture 2. Agriculture 3. Retail/Service Employing more than 10 Employing not more than 10

248.00 236.00 240.00 213.00

Quirino/Batanes 1. Non- Agriculture 2. Agriculture 3. Retail/Service Employing more than 10 Employing not more than 10 247.00 235.00 239.00 212.00

SECTION 2. COVERAGE. The increase prescribed under this Wage Order shall apply to all minimum wage workers and employees in the private sector in the region, regardless of their position, designation or status of employment and irrespective of the method by which their wages are paid. Excluded from the coverage of this Wage Order are household or domestic helpers, persons in the personal service of another including family drivers, and workers of registered Barangay Micro-Business Enterprises (BMBEs) with Certificates of Authority. SECTION 3. BASIS OF WAGE INCREASE. The wage increase prescribed under this Wage Order shall be for the normal working hours which shall not exceed eight (8) hours of work a day.

SECTION 4. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the case of private educational institutions, the share of covered workers in the increase in tuition fees for School Year 2012-2013 shall be considered as compliance with the wage increase prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2013-2014. Private educational institutions which have not increased their tuition fees for the School Year 2012-2013 may defer compliance with the provisions of this Wage Order until the beginning of School Year 2013-2014. In any event, all private educational institutions shall implement the wage increase prescribed herein starting School Year 2013-2014. SECTION 5. APPLICATION TO CONTRACTORS. In the case of contracts for construction projects, security, janitorial and similar services, the prescribed wage increase for covered workers shall be borne by the contractors, as the direct employers, subject to the proper and automatic amendment of their respective contract. In the event that the contractors fail to pay the wages or the deficiency as a result of the latest increase, the principal or clients shall be solidarily liable with the contractor/s. SECTION 6. WORKERS PAID BY RESULTS. All workers paid by results, including those who are paid on piecework, takay, pakyaw or task basis shall be entitled to receive not less than the prescribed minimum wage rate for eight (8) normal working hours a day, or a portion thereof for working less than eight (8) hours. SECTION 7. WAGES OF SPECIAL GROUPS OF WORKERS. Apprentices and learners shall receive not less than seventy five (75%) of the wage increase prescribed in this Wage Order. All recognized learnership and apprenticeship agreements entered into before the effectivity of this Wage Order shall be considered automatically modified in accordance with this Wage Order. All qualified handicapped workers shall receive the full amount of wage increase prescribed herein pursuant to R.A. 7277. SECTION 8. MOBILE WORKERS. Wages of workers, who by nature of their work have to travel, shall be those applicable in the domicile or head office of the employer. SECTION 9. BRANCH WORKERS. Wages of workers working in branches or agencies of establishments within the region shall be those applicable in the place where they are stationed. SECTION 10. TRANSFER OF PERSONNEL. The transfer of personnel to areas with lower minimum wage rates shall in no case be a valid ground for the reduction of the higher wage rates being enjoyed by the worker prior to such transfer. However, where the worker is transferred to an area with higher wage rate, he shall be entitled to the higher wage rate. SECTION 11. EXEMPTIONS. The following categories of establishments may be exempted from compliance with this Wage Order, upon application with and as determined by the Regional Board in accordance with the NWPC Guidelines No. 02, Series of 2007 (NWPC Amended Rules on Exemption):

1. 2. 3. 4.

Distressed establishments; New business enterprises (NBEs); Retail/Service establishments employing not more than ten (10) workers; and, Establishments which have been adversely affected by natural calamities

SECTION 12. EFFECT OF APPLICATION FOR EXEMPTION. Whenever an application for exemption is filed with the Board, action on any complaint for noncompliance with this Wage Order shall be deferred pending resolution of the said application. If an application for exemption is not granted, the employees of the applicant firm shall receive the mandated wage increase under this Wage Order plus one percent (1%) interest per month retroactive to the effectivity of this Wage Order. SECTION 13. CREDITABLE WAGE INCREASES. Wage increases granted by an employer in an organized establishment within three (3) months prior to the effectivity of the Wage Order shall 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 (CBA) 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 Wage Order. In unorganized establishments, wage increases granted by the employer within three (3) months prior to the effectivity of this Wage Order shall be considered as full or partial compliance, as the case may be. In case the increases given are less than the prescribed increase, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases and those resulting from the regularization of employees. SECTION 14. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application of the wage increase prescribed in this Wage Order results in distortion in the wage structure within the establishment, it shall be corrected in accordance with the procedure under Article 124 of the Labor Code, as amended. SECTION 15. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with this Wage Order shall be filed with the Regional Office of the Department of Labor and Employment (DOLE) and shall be the subject of enforcement proceedings under Article 128 of the Labor Code, as amended, without prejudice to criminal prosecution which may be undertaken against those who fail to comply. SECTION 16. NON-DIMINUTION OF BENEFITS. Nothing in this Wage Order shall be construed to reduce any existing wage rate, allowance or other benefits of any form under existing laws, decrees, issuances and executive orders or under any contract or agreement between workers and employers. SECTION 17. PRODUCTIVITY-BASED WAGES. In order to sustain rising levels of wages and enhance competitiveness, businesses are strongly encouraged to adopt productivity improvement schemes, such as time and motion studies, good housekeeping, quality circles, labor-management cooperation, as well as implement gain sharing programs. Accordingly, the Regional Board shall provide the necessary studies and technical assistance pursuant to RA 6971, the Productivity Incentives Act of 1990.

SECTION 18. PENAL PROVISION. Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to pay the prescribed wage increase in this Wage Order, shall be subject to the penal provisions under R.A. 6727, as amended by R.A. 8188. SECTION 19. PROHIBITION AGAINST INJUNCTION. No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal or other entity against any proceedings before the Board. SECTION 20. FREEDOM TO BARGAIN. This Wage Order shall not be construed to prevent workers in particular firms or enterprises or industries from bargaining for higher wages with their respective employers. SECTION 21. APPEAL TO THE COMMISSION. Any party aggrieved by this Wage Order may file a verified appeal with the Commission through the Board within ten (10) calendar days from the publication of this Wage Order. The filing of the appeal does not operate to stay the Wage Order unless the party appealing such Wage 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 Wage Order in the event such Wage Order is affirmed. SECTION 22. 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 RTWPB II not later than January 31, 2013 and every year thereafter in accordance with the form prescribed by the Commission. SECTION 23. SEPARABILITY CLAUSE. If, for any reason, any section or provision of this Wage Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid. SECTION 24. REPEALING CLAUSE. All orders, issuances, rules and regulations, or parts thereof inconsistent with the provision of this Wage Order are hereby repealed, amended or modified accordingly. SECTION 25. IMPLEMENTING RULES. The Board shall prepare the implementing rules of this Wage Order subject to the approval of the Secretary of Labor and Employment. SECTION 26. EFFECTIVITY. This Wage Order takes effect fifteen (15) days after its publication in a newspaper of general circulation. APPROVED this 20th day of April, 2012 in Tuguegarao City, Cagayan, Philippines.

JOSE D. BALAGAN Employees Representative 5

ERNESTO J. FUECONCILLO Employees Representative

CECILIA LA MADRID DY Employers Representative

CONSTANCIO S. SILVA Employers Representative

MILAGROS A. RIMANDO Vice Chairperson

MA. ESPERANZA C. BAARES Vice Chairperson

SIXTO T. RODRIGUEZ, JR. Board Chairperson

Note:

Published in The Daily Tribune, 1 May 2012 issue.