Employers oriented on new wage orders
TWO new Wage Orders were issued by the Regional Tripartite Wages and Productivity Board to benefit workers in the private sector in the Cordillera. These are Wage Order RB– CAR–17 for the formal workers of business establishments and CAR-DW-01 for domestic workers which took effect on June 29, 2015 and August 10, 2015, respectively.
A series of public orientations was conducted by the RTWPB in the region for the province of Abra on August 11, Baguio and Benguet on August 13, Ifugao on August 18, Mt. Province on August 19, and Kalinga, August 20.
Regional Director Henry John Jalbuena, chairman of RTWPB said, “The purpose of these public orientation is not only to let the employers and workers know the new adjustments on the minimum wage levels but most importantly on the reasons why a wage order is issued and how it is issued including the legal bases and guidelines.”
During the orientations held in Cordillera, it was emphasized that wage orders are issued to adjust the minimum wage levels only and not across the board because it is the mandate of the law ( RA 6727 and the labor code) further affirmed by the decision of the Supreme Court.
In the same orientation, it was further emphasized whatever adjustments made on the minimum wage rates are based on the study of the socio–economic indicators prevailing in the region which affect the interest of both employers and workers. It is a balancing act of recognizing the economic needs of workers and the capability of em-
ployers to pay.
The participants were also oriented that while RB–CAR–17 benefits the minimum wage earners only, those receiving over and above the minimum wage may also benefit from it by receiving increases in their pay but these are based on how they perform their job. Meaning, it is a performance based pay that a worker may receive on incentive for doing his work well and nothing if he does not.
According to chairman Jalbuena, this performance based pay for workers is due to the new system implemented in issuing a wage order which is called the Two–Tiered Wage System (TTWS).
According to him, the old system was for RTWPB to adjust minimum wage only. But with the new system, even those who are receiving more than the minimum wage may also receive an increase but on a condition they are performing well.
Chairman Jalbuena emphasized the TTWS is the just tier adjustment designed to protect the lowly paid workers who are the minimum wage earners and is mandatory for implementation and the second tier which is voluntary for implementation is designed to reward performing workers and serve as an encourage- ment for all in the work area to do their best.
The new minimum wage rates due to RBCAR-17 are: a.) for non- agriculture and retail/ service with 11 workers and above located in Baguio City, Municipalities La Trinidad, Itogon, Sablan and Tuba ( BLIST) is at P285 a day composed of P270 as basic salary and P15 as Cost of Living Allowance ( COLA), while the daily minimum wage rates in other areas in the region is at P265 (P255, daily minimum wage and P10 for COLA); b.) Agriculture and Retail/ Services with 10 workers and below located at BLIST areas is at P270 (P260 as daily rate and P10 as COLA), while other areas in the Region is at P255 (P245 as daily rate and P10 as COLA).
For domestic workers, the new minimum wage rates in the region shall not be less than P2,500 in chartered cities and firstclass municipalities, and P2,000 in other municipalities.
RTWPB-CAR is encouraging the public to visit its office at third floor DOLE-CAR, Cabinet Hill, Baguio City or call 300-3452 for any clarifications regarding the implementation of the said two Wage Orders. A. Aquillo and J.Fortunato