Why was the ₱85 wage hike in Metro Manila suspended?

The implementation of the ₱85 wage hike in Metro Manila, which was supposed to take effect on July 25, will not push through for now.

Under NCR Wage Order No. 27 issued by the Regional Tripartite Wages and Productivity Board, minimum wage earners in Metro Manila's private sector were set to receive a ₱60 per day increase.

But the Pasig Regional Trial Court (RTC) on July 30 issued a temporary restraining order (TRO) in response to a petition filed by two construction companies, Readycon Trading and Construction Corp. and R-II Builders, Inc., seeking declaratory relief regarding NCR Wage Order No. 2.

Under Rule 63 of the Rules of Court, declaratory relief refers to a court ruling declaring the rights of a party in relation to an issue or government order that affects them.

"Any person interested under a deed, will, contract or other written instrument, whose rights are affected by a statute, executive order or regulation, ordinance, or any other governmental regulation may, before breach or violation thereof, bring an action in the appropriate Regional Trial Court to determine any question of construction or validity arising, and for a declaration of his rights or duties, thereunder," Rule 63 states.

The court-issued order directed the Regional Board to suspend the implementation of the wage hike until August 13 while the resolution on the petitioners' request for declaratory relief remains pending.

The court also said the petitioners demonstrated 'extreme urgency' for the issuance of a TRO, and that there was a possibility of "grave injustice and irreparable injury" if the court did not issue a TRO.

Earlier, the Pasig RTC released a "status quo ante order" dated July 24. In the said order, the court directed that the previous minimum wage prior to the scheduled wage hike be maintained for now.

Meanwhile, a hearing on the petitioners' separate request for a writ of preliminary injunction is set for August 3.

"Parties and their counsels are likewise enjoined to file and furnish the adverse party/ies with evidence in support of, or opposition to the injunctive writ before the scheduled hearing," the TRO read.

DOLE: We followed due process

Labor Secretary Francis Tolentino expressed dismay over the TRO issued by the Pasig RTC.

"Malungkot ako para sa mga manggagawa pero susunod tayo sa utos ng husgado. Kung ano man ang naging basehan ng husgado sa paglalabas ng TRO, hayaan na po natin na sila ang magpapaliwanag," he said.

(I am sad for the workers, but we will abide by the court's order. Whatever the court's basis was for issuing the TRO, let us allow them to explain it.\

The Labor Department said that it is already coordinating with the Office of the Solicitor General, which will serve as the lawyer of the agency.

Tolentino also clarified that if workers have already received the adjusted wage, they do not need to return the excess amount they already received.

"Meron nang vested right 'yung manggagawa no'n. Hindi na dapat isauli 'yun...kasi at that time it was prepared, and at that time it was received, wala pang order 'yung National Wages and Productivity Commission na suspended," said Tolentino.

(The worker already has a vested right to that. It shouldn't be returned... because at the time it was prepared and received, there was no order yet from the National Wages and Productivity Commission suspending it.)

For her part, Sarah Buena Mirasol, Regional Director of DOLE-NCR and chairperson of Metro Manila's Regional Wage Board, stood firm that the minimum wage increase followed due process.

"Kami ay dumaan sa proseso. It was a discussion among the members of the Board, and all were given the opportunity," she maintained.

(We went through the process. It was a discussion among the members of the Board, and all were given the opportunity.)

"Tinalakay po naming ang iba't-ibang positions, comments ng labor, ng employer, as well as the government. We are confident in the fact na we followed due process, and we followed the process as provided in the guidelines for minimum wage fixing," Mirasol added.

(We discussed the various positions and comments from labor, employers, as well as the government. We are confident in the fact that we followed due process, and we followed the process as provided in the guidelines for minimum wage fixing.)

Various labor groups also opposed the Pasig RTC move.

"Despite acknowledging this express statutory prohibition, the RTC proceeded to issue the very temporary restraining order that the Labor Code forbids," said Federation of Free Workers president Sonny Matula.

"The law does not allow employers to shop for another forum simply because they dislike the outcome of the Wage Board. Kung gusto nilang kwestiyunin ang Wage Order, malinaw ang batas - umapela sila sa NWPC (If they want to question the Wage Order, the law is clear—they should appeal to the NWPC)," the Trade Union Congress of the Philippines said. —RF, GMA News