SOCCKSARGEN's minimum wage increase to P14 per day

Labor and Employment Secretary Rosalinda Dimapilis-Baldoz yesterday announced the Regional Tripartite Wages and Productivity Board (RTWPB) in Region 12 composed of the provinces and cities of South Cotabato, Cotabato, Koronadal, Sarangani, and General Santos City, has issued a new order mandating an increase in the minimum wage of private sector workers in said region.

“Minimum-wage earners in the private sector in Region 12 will receive pay adjustments following a new wage order issued by the RTWPB. Wage Order No. RXII-17 grants a daily increase in the cost of living allowance (COLA) ranging from P10 to P14 per day,” Baldoz said.
“Considering that the last wage order was issued more than one year ago, and there being no petition, the wage board resolved to review, motu proprio, the existing minimum wage rates in the region and decided on an increase,” she added.
Based on the order, the increase in COLA is as follows:

a. Ten pesos (P10.00) per day for those in the non-agriculture industry/sector;
b. Eight pesos (P8.00) per day for those in the non-agriculture industry/sector and an additional four pesos (P4.00) COLA per day effective December 1, 2012 for the plantation sector and six pesos (P6.00) COLA per day effective December 1, 2012 for the non-plantation sector.
c. Six pesos (P6.00) per day for those in the retail/service establishments and an additional four pesos (P4.00) COLA per day effective December 1, 2012 in establishment with more than ten workers and six pesos (P6.00) COLA per day effective December 1, 2012 in establishment with not more than ten workers.

Baldoz said the order also integrates into the basic wage the COLA previously granted by the wage board under Wage Order No. RBXII-16 as follows:

INDUSTRY/SECTOR Basic Wage under Wage Order No. RBXII-16 COLA under Wage Order No. RBXII-16 New Basic Minimum Wage

Non-Agriculture
P245.00
P15.00
P260.00

Agriculture
• Plantation
• Non-Plantation

P225.00
P220.00

P15.00
P15.00

P240.00
P235.00

Retail Service Establishments
• Employing more than ten workers
• Employing not more than ten workers

P225.00
P219.00

P15.00
P15.00

P240.00
P234.00

In its order, the wage board said its decision was arrived at as a result of the studies on the socio-economic conditions of the region, public consultations/ public hearings, and deliberations which revealed there was a need to grant an increase. It conducted a sectoral consultation last year and public consultations and public hearings on January 25 and January 26 this year to determine the propriety of issuing a new wage order. Minimum wage earners in the region will receive their respective wage adjustments before the end of the month, or 15 days after the publication of the wage order in a newspaper of general circulation.

The latest wage order shall apply to all minimum wage earners in the private sector in the region “regardless of their position, designation, or status, and irrespective of the method by which their wages are paid.” It does not cover household or domestic helpers and workers who are in the personal service of another, including family drivers and workers of registered Barangay Micro Business Enterprises (BMBEs).

The wage order encourages businesses to adopt productivity improvement schemes, such as time and motion studies, good housekeeping, labor management cooperation, and gain sharing programs to sustain rising levels of wages and enhance competitiveness.

“Consistent with the government’s policy of achieving higher levels of productivity to preserve and generate jobs 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,” said National Wages and Productivity Commission Executive Director Ciriaco Lagunzad Jr., commenting on the new wage order.

Lagunzad reported five wage orders have already reached their anniversary dates. These are those of Region 4-B (November 11, 2010); Cordillera Administrative Region (January 1, 2011); Region 1 (January 20, 2011); Region 4-A (February 15, 2011); and Region 2 (February 16, 2011).

The RTWPB-SOCCKSARGEN is composed of workers’ representatives Simplicio H. Villarta Jr. and Joemarie P. Angeles; employers’ representatives Atty. Eugenio U. Soyao and Warren Gregorio A. Manilay as members; National Economic Development Authority Regional Director Teresita Socorro C. Ramos and Department of Trade and Industry Regional Director Ibrahim K. Guiamadel as vice chairpersons. DOLE Regional Office director Chona M. Mantilla sits as RTWPB chairman.