Nasipit Lumber Co. vs NWCP GR No.

128296

Facts: The Regional Tripartite Wages and Productivity Board of Region X, Northern Mindanao, Cagayan de Oro City, issued
a wage order, mandating a 7 pesos increase in the minimum daily wage of all workers and employers in the private sector
in Region X receiving a daily wage of not more than 130 pesos per day and additional 10 for allowance. Petitioner filed an
application for exemption from compliance with the wage order, claiming that they are distressed establishments whose
paid-up capital has been impaired by 25%. After finding that petitioners sustained financial losses. The RTWPB granted a
full exemption from compliance with the wage order for 1 year. After the 1 year passed, petitioner again wants to apply for
extension of the exemption from the wage order which was denied. Petitioners appealed to the National Wages and
Productivity Commission which also denied their appeal.

Issue: ( Functions of Agencies for Wage Fixing Machinery)

Ruling: The Commission shall have the following powers and functions:

Art. 121. Powers and Functions of the Commission

C. To prescribe rules and guidelines for the determination of appropriate minimum wage and productivity measure at the
regional, provincial or industry levels.

D. To review regional wage levels set by the Regional tripartite Wages and Productivity Boards to determine of these are in
accordance with prescribed guidelines and national development plans;
Employers Confederation of the Philippines vs National Wages and Productivity Commission

Facts: Oct. 15, 1990, the Regional Board of the NCR issued Wage Order no. NCR-01, increasing the minimum Wage Order
No. NCR-01, increasing the minimum wage by 17 per day in the NCR. The Trade Union of the Philippines moved for
reconsideration; so did the Personnel Management Association of the Philippines. The Board issued Wage Order No. NCR-
01-1 amending Wage Order No. NCR-01 (Section 1. Upon effectivity of this Wage Order, all workers and employees in the
private sector in the National Capital Region already receiving wages above the statutory minimum wage rates up to one
125 per day shall also receive an increase of 17 per day.

The petitioner is questioning the validity of Wage Order No. NCR-01-A dated Oct. 23, 1990 of the Regional Tripartite
Wages and Productivity Board, National Capital Region, Promulgated pursuant to the authority of RA 6727. Aside from
providing new wage rates, the “Wage Rationalization Act” provides, among other things, for various Regional Tripartite
Wages and Productivity Boards in charge of prescribing minimum wage rates for all workers in the various regions and for
a National Wages and Productivity Commission to review, among other functions, wage levels determined by the Boards.

Issue: Whether the wage order is valid

Ruling: Yes, There are two ways of fixing wage - (1) the floor wage method and the salary ceiling method. The floor wage
method involved the fixing of determinate amount that would be added to the prevailing statutory minimum wage, while
the (2) salary ceiling method involves the application of the wage adjustment to employees receiving a certain
denominated salary ceiling.