August 10, 2011

WAGE ORDER NO. ARMM-13

PROVIDING FOR A COST OF LIVING ALLOWANCE IN THE AUTONOMOUS REGION IN MUSLIM MINDANAO

WHEREAS, the Regional Tripartite Wages and Productivity Board (RTWPB) is mandated under

WHEREAS, RTWPB-ARMM issued Wage Order No. ARMM-12 providing for a P12.00/day basic wage increase making the Minimum Wage Rate at P222.00/day effective August 20, 2010;

WHEREAS, despite no petitions received from any organized groups or labor associations in the Region, the Board, in its own initiative, conducted public consultations and dialogues regionwide with the tripartite sectors on May 30-Basilan and Sulu, May 31-Tawi-Tawi, June 1-Maguindanao, and June 2, Marawi City/Lanao del Sur;

WHEREAS, after considering the result of the series of public consultations and dialogues and a thorough evaluation of the socio-economic conditions in the Region, the Board finds it necessary to provide private sector workers with immediate relief without impairing business viability;

NOW, THEREFORE, by virtue of the power and authority vested under aTHASC

SECTION 1. New Wage Rate. Upon effectivity of this Wage Order, all private sector minimum wage earners in the Provinces of Maguindanao, Lanao del Sur, Sulu, Tawi-Tawi, Basilan and cities of Marawi and Lamitan, all in ARMM, shall receive a Cost of Living Allowance (COLA) in the amount of TEN PESOS (P10.00) per day, with its new wage rate as follows:

SECTION 2. Coverage. This Wage Order applies to all minimum wage earners in the region, except domestic helpers, family drivers, and those employed in the personal service of another, and workers in registered Barangay Micro Business Enterprises with certificates of authority pursuant to

SECTION 3. Productivity Based Wages. In order to sustain rising levels of wages and enhance competitiveness, business establishments are encouraged strongly to adopt productivity improvement schemes such as time & motion studies, good housekeeping, quality circles, labor management cooperation as well as implement gain-sharing programs. Accordingly, the Board shall provide the necessary studies and technical assistance pursuant to

SECTION 4. Basis of Minimum Wage. The minimum basic wage rates plus COLA prescribed under this Order shall be for the normal working hours, which shall not exceed eight (8) hours work a day.

SECTION 5. 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 the prescribed minimum basic wage rate plus COLA per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours work a day. SETAcC

SECTION 6. Wages of Special Groups of Workers. Wages of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable minimum wage rates prescribed in the region.

All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automatically modified insofar as their wage clauses are concerned to reflect the new prescribed wage rates.

All qualified handicapped workers shall receive the full amount of increase in this Order pursuant to

SECTION 7. 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 2011-2012 shall be considered as compliance with the COLA set forth herein; provided, that if such COLA is less than the prescribed adjustment, the employer shall pay the difference in the 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 provisions of this Order until the beginning of School Year 2012-2013.

In any case, all private educational institutions shall implement the COLA prescribed herein starting School Year 2012-2013.

SECTION 8. Application of Contractors. In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed COLA of the workers shall be borne by the principals or clients of the construction/service contractors and the contract shall be deemed amended.

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

SECTION 9. 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 Order.

SECTION 10. Effect of Filing 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 of the corresponding COLA to employees affected by the Order, in the event such Order is affirmed.

SECTION 11. Exemptions. Upon application with and as determined by the Board, in accordance with the NWPC Guidelines No. 02, series of 2007 (The Amended Rules on Exemption), the following may be exempted from the applicability of this Wage Order:

a. Retail and Service Establishments regularly employing not more than 10 workers;

b. Distressed establishments;

c. New business enterprises; and

d. Establishments adversely affected by natural calamities.

All applications with complete supporting documents as specified in the Rules of Exemption from compliance with this Order shall be filed within seventy-five (75) days from the date of publication of the Rules Implementing this Order. Failure to submit the required supporting documents within the prescribed period will be tantamount to dismissal of the application for exemption.

SECTION 12. Creditable Wage Increase. Wage increases granted in an organized establishment within three (3) months prior to the effectivity of this Order, shall be credited as compliance with the prescribed COLA set forth herein, 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 COLA prescribed in this Order. CcHDSA

In the case of the unorganized establishment, COLA granted by the employer within three (3) months prior to the effectivity of this Order shall be credited as compliance.

In the event that increase given under the above conditions is less than the prescribed adjustment, the employer shall pay the difference. Such increases shall not include anniversary increase, merit increase and those resulting from regularization or promotion of employees.

SECTION 13. Complaints for Non-Compliance. Complaints for non-compliance with this Order shall be filed with 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 14. Non-Diminution of Benefits. Nothing in this Order shall be construed to reduce any existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances, executive orders and/or under any contract or agreement between the workers and employers.

SECTION 15. Penal Provision. Any person, corporation, trust or firm, partnership, association or entity which refuses or fails to comply to this Order, shall be subjected to the penal provisions under

SECTION 16. 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 17. Freedom to Bargain. This Order shall not be construed to prevent workers in particular firms or enterprises of industries from bargaining for higher wages with their respective employers.

SECTION 18. 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, 2012 and every year thereafter in accordance with the form prescribed by the Commission. DcITaC

SECTION 19. 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 20. Separability Clause. If, for any reason, any section or provision of this Order is declared unconstitutional or illegal, the other provisions or parts shall remain valid.

SECTION 21. Implementing Rules. The Board shall prepare the necessary Rules to implement this Order subject to approval of the Regional Governor of ARMM.

SECTION 22. Effectivity. This Order shall take effect fifteen (15) days after publication in at least one (1) newspaper of general circulation in the region.

Approved this 10th day of August, 2011 in Cotabato City, Philippines.

(SGD.) HON. MYRA MANGKABUNG-ALIH
Board Chairman
DOLE-ARMM Regional Secretary
Regional Tripartite Wages and Productivity Board
Autonomous Region in Muslim Mindanao

(SGD.) HON. DIAMADEL E. DUMAGAY
Vice-Chairman
RPDO Executive Director
Regional Tripartite Wages and Productivity Board
Autonomous Region in Muslim Mindanao

(SGD.) HON. ASNAIRA M. BATUA
Vice-Chairman
DTI-ARMM Regional Secretary
Regional Tripartite Wages and Productivity Board
Autonomous Region in Muslim Mindanao

(SGD.) HON. ALE B. TUBA
Workers' Representative
Regional Tripartite Wages and Productivity Board
Autonomous Region in Muslim Mindanao

(SGD.) HON. EDGAR L. BULLECER
Employers' Representative
Regional Tripartite Wages and Productivity Board
Autonomous Region in Muslim Mindanao

(SGD.) HON. ALMARIO U. LERIOS
Workers' Representative
Regional Tripartite Wages and Productivity Board
Autonomous Region in Muslim Mindanao

(SGD.) HON. DATU HARON U. BANDILA
Employers' Representative
Regional Tripartite Wages and Productivity Board
Autonomous Region in Muslim Mindanao

Attested by:

(SGD.) LILIAN RUTH C. CABANBAN
Board Secretary VI
Regional Tripartite Wages and Productivity Board
Autonomous Region in Muslim Mindanao