ECOP vs.

NWPC Case Digest

Employees Confederation of the Philippines (ECOP) vs. NWPC
201 SCRA 759 (1991)

Facts:

Petitioners ECOP questioned the validity of the wage order issued by the RTWPB
dated October 23, 1990 pursuant to the authority granted by RA 6727. The wage order
increased the minimum wage by P17.00 daily in the National Capital Region.

The wage order is applied to all workers and employees in the private sector of an
increase of P 17.00 including those who are paid above the statutory wage rate. ECOP
appealed with the NWPC but dismissed the petition.

The Solicitor General in its comment posits that the Board upon the issuance of the
wage order fixed minimum wages according to the salary method. Petitioners insist that the
power of RTWPB was delegated, through RA 6727, to grant minimum wage adjustments and
in the absence of authority, it can only adjust floor wages.

Issue:

Whether or not the wage order issues by RTWPB dated October 23, 1990 is valid.

Ruling:

The Court agrees with the Solicitor General. It noted that there are two ways in the
determination of wage, these are floor wage method and salary ceiling method. The floor
wage method involves the fixing of determinate amount that would be added to the prevailing
statutory minimum wage while the salary ceiling method involves where the wage adjustment
is applied to employees receiving a certain denominated salary ceiling.

RA 6727 gave statutory standards for fixing the minimum wage.

ART. 124. Standards/Criteria for Minimum Wage Fixing — The regional minimum wages to be
established by the Regional Board shall be as nearly adequate as is economically feasible to
maintain the minimum standards of living necessary for the health, efficiency and general
well-being of the 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:

(a) The demand for living wages;

(b) Wage adjustment vis-a-vis the consumer price index;

(c) The cost of living and changes or increases therein;

(d) The needs of workers and their families;

(e) The need to induce industries to invest in the countryside;

(f) Improvements in standards of living;

(g) The prevailing wage levels;

(h) Fair return of the capital invested and capacity to pay of employers;

(i) Effects of employment generation and family income; and

(j) The equitable distribution of income and wealth along the imperatives of economic and
social development."

The wage order was not acted in excess of board’s authority. The law gave reasonable
limitations to the delegated power of the board