2017 Labor Law, Q4

The Regional Tripartite Wages and Productivity Board (RTWPB) for Region 3 issued a wage order on November 2, 2017 fixing the minimum wages for all industries throughout Region 3.
(a) Is the wage order subject to the approval of the National Wages and Productivity Commission before it takes effect? (2%)
(b) The law mandates that no petition for wage increase shall be entertained within a period of 12 months from the effectivity of the wage order. Under what circumstances may the Kilusang Walang Takot, a federation of labor organizations that publicly and openly assails the wage order as blatantly unjust, initiate the review of the wage increases under the wage order without waiting for the end of the 12-month period? Explain your answer. (3%)

Quick check

Is approval by the National Wages and Productivity Commission required before a regional wage order takes effect?

When does a regional minimum wage order legally take effect following its promulgation?

What general statutory rule limits the frequency of petitions for regional wage increases under Article 123?

Under what legal circumstance may a labor federation initiate a wage review before the 12-month period expires?

What legal relationship exists between the NWPC and the Regional Tripartite Wages and Productivity Boards?

Learn more about these topics

1. RTWPB Wage Orders
Under Article 122 of the Labor Code, Regional Tripartite Wages and Productivity Boards possess original statutory authority to determine and issue minimum wage orders for their respective regions. Once promulgated and published in a newspaper of general circulation within the region, a wage order automatically takes effect fifteen days following publication. Approval by the National Wages and Productivity Commission is not a prerequisite for its legal effectivity, as the commission exercises technical supervision over regional boards rather than prior approval authority over wage orders.

2. Twelve Month Bar
Article 123 of the Labor Code establishes the statutory twelve-month bar rule to maintain economic predictability and industrial peace. Under this rule, any wage order issued by a regional wage board cannot be disturbed, revised, or subjected to a new petition for a wage increase within twelve months from its effectivity. This prohibition prevents constant wage litigation and allows commercial enterprises and labor unions to adjust business planning and collective bargaining agreements to newly established minimum wage rates.

3. Supervening Conditions Exception
The statutory twelve-month prohibition against reviewing or increasing regional minimum wages is not absolute. Article 123 of the Labor Code provides an explicit exception when supervening conditions occur within the region during the twelve-month period. Extraordinary inflation, sudden spikes in petroleum product prices, or severe increases in the cost of basic goods and services qualify as supervening conditions. When such extraordinary circumstances arise, labor organizations may validly petition the regional wage board to review minimum wage rates prior to the expiration of twelve months.

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The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

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