Sunday, July 18, 2004 CAR workers given P15 daily Cola increase By Jane Cadalig
BAGUIO CITY -- The Regional Tripartite Wages and Productivity Board of the Department of Labor and Employment has granted a P15 daily increase in the cost of living allowance (Cola) of workers in the private sector currently receiving the minimum wage.
The order, which takes effect 15 days after its publication, was signed by DOLE Regional Director Aida Estabillo, chairman of the Land Transportation Franchising and Regulatory Board (LTFRB) in the Cordillera Administrative Region (CAR) and concurred by DTI and NEDA regional directors Armando Galimba and Juan Ngalob, respectively, as vice-chairmen; Alfonso Lao and Ma. Mignon De Leon as the employers' representatives; and Adriano Biala, representing the workers. Another workers' representative, Jessie Pagaran, dissented.
The five-page order noted that "the board determined the need to adjust the minimum wage level to cushion the impact of the devaluation of peso and the increase of petroleum products and transportation fees" after evaluating the socio-economic conditions in the region.
"All private sector workers and employees receiving the minimum wage, regardless of their position, designation or status, and irrespective of the method their wages, are paid are covered by the wage order."
The minimum wage rates prescribed under the order for all covered workers in the different industrial classifications and geographical locations, shall be for normal working hours not exceeding eight hours a day, it added.
Existing Cola is placed at P16 per day.
For private educational institutions, the share of covered employees in the tuition fees for the school year 2004-2005 shall be considered as compliance with the additional Cola, but payment of any shortfall in the allowance shall be covered starting SY 2005-2006.
Private institutions, which did not increase their tuition fees for SY 2004-2005, may differ compliance with the provisions of the wage order but should implement the additional Cola starting SY 2005-2006.
The additional Cola of the workers under contracts for construction projects, security and janitorial services shall be borne by the principals or clients of the contractors. Said order, however, stressed that in the event the principal or client fails to pay the prescribed wage rates, the contractor shall be jointly and severally liable with his principal or client.
The order added that all workers paid by results, including those who are paid on piecework, takay, pakyaw, or task basis shall receive the additional Cola for the eight working hours per day or a proportion thereof for less than eight hours.
In addition, employees under apprenticeship agreement shall be entitled to the increase which shall not be less than 75 percent of the additional Cola prescribed in the order.
Minimum wage rates of mobile and branch workers shall be those applicable in the domicile or head office of the employer. Likewise, minimum wage of workers in branches or agencies of establishments in or outside the region shall be those applicable in the place where they are stationed.
The board also emphasized that the transfer of personnel from one province or region to another is not a valid reason for the reduction of the wage rate being enjoyed by the worker prior to the transfer.
Distressed establishment as defined in the NWPC guidelines maybe exempted from the wage increase upon proper application with and as determined by the board.
New business enterprises duly registered and established outside export processing zone within two years from the effectivity of the order, classified under agricultural establishments and establishments with total assets after financing, of P5 million and below may also be exempted.
A year exemption shall be granted to all categories of establishments that meet the applicable criteria for exemption under section 3 of NWPC guidelines 1-1996. The board clarified that a partial exemption of 50 percent, with respect to the amount or period of exemption, shall only be in the case of distressed establishments.
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