Amendment to Minimum Wage Law and Wage Commission

A Wage Commission is established within the Department of Labor to study wage rates continuously across industries.
It identifies industries where about 10% of employees earn wages insufficient for maintaining health and general well-being.
After studies and hearings, it may recommend voluntary bargaining for minimum wages at the industry level.
The mediation and conciliation services of the Bureau of Labor Relations support bargaining.
The Commission may resolve disputes regarding representation for bargaining by ordering elections among employers or employees.
Rules for elections include public notice, postings in local dialects, and inclusivity of all employers and employees.
Bargaining representatives negotiate minimum wage agreements, which, if agreed upon, are submitted to the Commission for issuance as enforceable wage orders.
Failure to reach agreement within 45 days triggers the Commission’s authority to fix wages.
Extensions of negotiation periods may be granted on showing of probable agreement.

If no agreement is reached or the majority prefers Commission fixing, it will set minimum wages after notice and hearing.
Wage orders are to be issued within 60 days.
Wage determination considers cost of living, comparable wages, employer standards, fair capital returns, and agricultural factors.
Commission cannot set wages below current prevailing minimums or statutory minimums.
Wage orders take effect 15 days after publication in two newspapers and other notice methods.
Employers are prohibited from paying less than the wage order rates.
Minimum wages fixed are stable for two years unless a new collective bargain agreement mandates changes.
Workers’ unions may still negotiate higher wages individually.

Appeals from wage orders lie with the Court of Appeals within 15 days of last publication.
Employees are exempted from filing fees and appeal bonds.
Appeals do not stay wage orders unless the court orders so and the appellant posts an undertaking to pay differences if the order is affirmed.
Courts may not issue injunctions to restrain wage commission proceedings or wage orders, except as provided.

The Commission has five members: three public representatives (one as Chairman), one labor, and one employer.
Public representatives must have no business interests or positions conflicting with duties.
Terms are six years, with staggered terms for initial appointees.
Members are appointed by the President with Commission on Appointments consent.
Chairman must qualify as a Judge; members must be lawyers or degree holders with civil service eligibility.
Salaries are fixed for Chairman and members.
A quorum is three members; decisions require at least three affirmative votes.
The Commission has technical and administrative staff appointed by the Chairman.

May request assistance from government agencies and summon witnesses or require evidence.
Collects and analyzes data on wages, employment, cost of living, productivity, and economic conditions.
Holds hearings, can delegate hearing officers with authority similar to members.
Authorized to administer oaths, subpoena witnesses, and compel evidence.
No witness can refuse to testify or produce evidence on self-incrimination grounds, but testimony cannot be used against them except for perjury.
Promulgates implementing rules and internal procedures consistent with due process but relaxed evidentiary rules.
Rules take effect after publication.
Must submit annual report to Congress including wage studies and wage orders issued.

Violations of the Act or its rules lead to fines between five hundred to two thousand pesos.
Second offenses may lead to imprisonment from six months to one year, or both fine and imprisonment.
Convicted alien violators shall be deported after sentence.
Claims for unpaid minimum wages where employer-employee relationship exists fall under Court of Industrial Relations jurisdiction; otherwise, regular courts hear claims.
Oral evidence can be used to challenge payroll and related documents, which are only prima facie evidence.
Industry-wide wages above statutory minimums are under the Wage Commission, while firm-specific wages are under the Court of Industrial Relations.

Invalidity of any part does not affect the rest of the Act.
Repeals inconsistent laws and parts of laws.
Appropriates five hundred thousand pesos for initial Wage Commission expenses; subsequent funding through Annual Appropriations.
The Act takes effect immediately upon approval.