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					REPUBLIC OF THE PHILIPPINES Department of Labor and Employment National Wages and Productivity Commission City of Manila In re: PETITION FOR P75 ACROSS-THE-BOARD INCREASE IN THE DAILY MINIMUM WAGE OF WORKERS IN THE CALABARZON REGION Trade Union Congress of the Philippines (TUCP), Petitioner – Appellant/Movant

MOTION FOR RECONSIDERATION AND/OR MEMORANDUM OF APPEAL

Petitioner Trade Union Congress of the Philippines (TUCP) respectfully files this Motion for Reconsideration and/or Memorandum of Appeal with this Honorable Commission, assailing Wage Order IVA-11 dated 19 July 2006 of the Region Regional Tripartite Wages and Productivity Board IVA Wage Order No. 11 granting a P3.00 to P18.00 increase in minimum wages for minimum wage earners in the Region IV – A.

TIMELINESS OF THE MOTION AND/OR APPEAL

RTWPB IV – A Wage Order No. 11 was published on 23 July, 2006 and, therefore, this Motion and/or Appeal is filed within the 10-day reglementary period provided for in Article 123 of Republic Act 6727.

GROUNDS IN SUPPORT OF THE MOTION FOR RECONSIDERATION AND/OR APPEAL Appellant is assailing Wage Order No. IV-A 11 on the following grounds.

1. THE REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD IVA COMMITTED GRAVE ABUSE OF DISCRETION IN ISSUING WAGE ORDER NO. IVA-11 PROVIDING FOR A WAGE INCREASE RANGING FROM P3.00 to P18.00 PER DAY IN THE MINIMUM WAGE OF NON-AGRICULTURAL AND AGRICULTURAL WORKERS

2. THE WAGE ORDER IS CONTRARY TO LAW

ARGUMENTS

Republic Act 6727 clearly defines the rationale for the creation of the Regional Tripartite Wages and Productivity Boards (RTWPBs). Section 2 of RA 6727 declared as the policy of the State to rationalize the fixing of minimum wages and to promote productivity-improvement and gain-sharing measures to ensure, among others, decent standard of living for the workers and their families.

RA 6727 further defines this mandate by prescribing the guidelines to be followed by the RTWPBs in fixing minimum wages.

Section

3,

incorporating

Article

124

in

the

Labor

Code

on

Standard/Criteria for Minimum Wage Fixing – states “The regional minimum wages to be established by the Regional Board shall be as nearly adequate as is economically feasible to maintain minimum standards of living necessary for the health, efficiency, and general well-being of employees within the framework of the national economic and social development program.”

In the determination of such regional minimum wages, the Regional Board shall, among other relevant factors consider the following: the demand for living wages; wage adjustment vis-à-vis the consumer price index ;the cost of living and changes or increases therein; the needs of workers and their families; improvements in standards of living; and the prevailing wage levels.

Against these specific standards prescribed by Republic Act 6727, it is patent that the P3.00 to P18.00 wage increase granted by the Region IV-A Wage Board did not conform to the spirit and letter of the law and the above-

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mentioned criteria. The increase falls far short of the law’s mandate and the prescribed criteria which therefore makes it highly questionable and illegal.

Wage Order No. IV-A 11 raised minimum wages in the CALABARZON Region, depending on the area, in the amounts ranging from P3.00 to P18.00.

Under the Order, minimum wage earners in the Cavite, Laguna, Batangas, Rizal, and Quezon (CALABARZON) will get the following increases: Extended Metropolitan Area, P10 per day; Growth Corridor Area, P6-P18; Emerging Growth Area P6-P14; and Resource Based Area, P3-P8.

The TUCP submits that these varying amounts are grossly deficient even only for the purpose of recouping the lost purchasing power of workers brought about by increases in prices of basic goods, oil and petroleum products, nor does it bring workers and their families closer anywhere near the level of decent standards of living.

The TUCP also assails the very liberal interpretation of the Wage Board of RA 6727 in implementing categories in the issuance and application of minimum wage levels.

RA 6727 in creating the regional wages and productivity boards clearly intended that minimum wage set by them constitutes a safety net, a minimum, an entry level, a floor wage, that ensures that every worker is able to provide for himself and his family the basic necessities. Section 2 of the said law clearly supports this assertion.

The Region IV-A wage board in providing for the measly amount of P3.00 to P18.00 a day increase failed to consider the economic realities defined by scientific and long-established meaning of decent living standards and the concept of a living wage. This is not consistent nor does it conform to the

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factors identified in Section 3, as aforestated, more specifically: the demand for living wages; wage adjustment versus the CPI; cost of living; and the needs of workers and their families. This clearly constitutes grave abuse of discretion on the part of the Region IV-A Wage Board.

Moreover, the authoritative agency in the interpretation of data and statistics is the National Statistics Office (NSO) and/or the National Statistical Coordination Board (NSCB). In issuing Wage Order No. VIA-11, the Region IVA Wage Board also failed to take into account the recent findings of the NSCB.

The NSCB in its most recent findings which was also published in the website of no less than the National Wages and Productivity Commission (NWPC), states that the Family Living Wage (FLW) now stands at P660.00 per day for Region IV.

FLW is measured by adding together food and on-food expenditures plus 10% provisions for other components to allow savings and investments.

The NSCB measures FLW by a family size of six, the average number of Filipino families.

Wage Order No. IVA-11 miserably fails in this aspect.

The highest minimum wage category of P287 under category of Extended Metropolitan Area specified by Wage Order IVA-11 is not even half of the FLW of P660.00 per day.

In the same findings by the NSCB, on a year-to-year basis, and even for the sake of argument that the basis for any increase should be the movement of the CPI vis-à-vis the FLW, the FLW rose from P611.00 per day in 2005 to P660.00 in 2006, a difference of P49.

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Again, this glaring fact was missed in the deliberations of the Region IV-A Wage Board because obviously the P3.00 to P18.00 is not even half of necessary adjustment to fulfill the requirements for workers and their families to attain even the most basic necessities as shown by the said increase in the FLW.

The Petitioner also insists that in prescribing minimum wages, the Wage Boards must determine minimum wages according to the totality of the region. This is the clear intent of RA 6727.

The Wage Board not only committed grave abuse of authority in issuing measly amounts of increases but also created a several categories through the classifications of Extended Metropolitan Area, Growth Corridor Area, Emerging Growth Area, and Resource Based Area. This goes against the spirit and intent of RA 6727 which mandates the regionalization of minimum wages.

Despite admonitions of the NWPC itself, as well as directives from Congress itself, the Wage Board continues to maintain its “artificial” categorization of sub-regions, its delineating wage levels by these sub-regions, and granting increases in these sub-regions – WITHOUT clear rationale or justification for this categorization, differing rates for these sub-regions and differing increases for these sub-regions.

The NCSB in ascertaining the Family Living Wage (FLW) speaks only of one FLW for IV.

The P660 set by the NCSB covers the whole Region IV. This proves the point that there no disparity in the cost of living standards and the consumer price index across the region.

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Petitioner reserves its rights to file additional pleadings, if necessary, after it receives its copy of RTWPB Wage Order No. VIA– 11.

PRAYER

WHEREFORE,

premises

considered,

petitioner

movant/appellant

respectfully prays that Region IV-A Wage Order No. 11 be reconsidered and or set aside and a new wage order issued increasing the minimum wage in the CALABARZON Region to P75 per day across-the-board to make it conform with the mandate and spirit of Republic Act 6727.

Other reliefs deemed just and equitable under the premises are likewise prayed for.

Quezon City for Manila, 01 August 2006

DEMOCRITO T. MENDOZA President

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VERIFICATION/ AFFIDAVIT OF NON – FORUM SHOPPING

I, DEMOCRITO T. MENDOZA, Filipino, of legal age, married with office address at TUCP – PGEA Compound, Masaya cor. Maharlika Sts., Dliman, Quezon City, after having duly sworn into accordance with law do hereby depose and state:

1. That I am the President of the Trade Union Congress of the Philippines, petitioner in the above-entitled case; that I caused the preparation of the foregoing Motion for Reconsideration/Memorandum of Appeal;

2. That the allegation stated therein are true and correct of my own personal knowledge; and

3. That there is no pending case of similar nature filed by petitioner in any Court, quasi-judicial body, or any agency of the government pertaining to the same subject matter, cause, issues or facts.

IN WITNESS HEREOF, the undersigned had affixed his signature in Quezon City this 01 August 2006.

DEMOCRITO T. MENDOZA Petitioner/Affiant

SUBSCRIBED AND SWORN to before me this 28th day of July 2006 at Quezon City, affiant exhibited to me his CTC No. 08236821 issued on January 13, 2006 at Cebu City.

Doc No. _____; Page No. _____; Book No. _____; Series of 2006

Notary Public

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