P85 wage hike further delayed by court order
There will be a further delay in the implementation of the P85 wage increase for workers in the National Capital Region (NCR) after a Pasig Regional Trial Court (RTC) on Thursday granted the writ of preliminary injunction sought by two construction companies, citing the “need to have the rights of both management and labor considered.”
The 14-page order issued by Presiding Judge Marie Joyce Manongsong of the Pasig RTC Branch 152 effectively suspends the implementation of NCR Wage Order No. 27, which mandated the increase “pending this court’s determination of the merits of the petition for declaratory relief” filed by Readycon Trading and Construction Corp. and R-II Builders on July 23. It also set a bond of P10 billion.
Manongsong issued on July 30 a temporary restraining order (TRO) against the wage hike, which expired on Thursday.
Under the wage order, NCR workers were to receive the first tranche of the increase amounting to P60 on July 25. The second tranche of P25 is due on Jan. 20, 2027.
In issuing the preliminary injunction, the Pasig RTC said it is “cognizant of the burden that this order would cause the millions of workers in the National Capital Region,” stressing that it is “not indifferent to the plight of the work force, particularly the minimum wage earners.”
But it added that because of the unique circumstances of the case, “this court is of the belief that it is now an opportune time to make a determination on how the constitutional right of businesses to reasonable returns to investment, and to expansion and growth should be weighed against the workers’ interests in the context of wage fixing.”
Novel issue
“Specifically, this court finds that this case genuinely presents a novel issue regarding the binding nature of Article 124 of the Labor Code,” it said. The provision provides the standards or criteria for minimum wage fixing.
The Pasig RTC, however, said that regional wage boards must also consider the “fair return of the capital invested and capacity to pay of employers.”
“Applied to the facts of this case, this court finds that there is a legitimate issue as to how this provision should be applied to reconcile or balance the interests of labor and management,” it further said.
The court also noted that the Regional Tripartite Wages and Productivity Board in Metro Manila relied on information gathered from attendees in various public consultations when it determined the wage hike, which Readycon and R-II alleged were “insufficient representatives of their respective sectors.”
No bright line rule
Because of this, “it is easily apparent that there is no bright line rule, or any guidepost with respect to the wage board’s sources and extent of data gathering for wage fixing, rendering the same arbitrary,” it said.
Moreover, the RTC said it disagreed with the argument that it did not have jurisdiction over the case, as it noted that the 60-day period to appeal the wage hike before the National Wages and Productivity Commission “would not timely address petitioners’ grave and urgent concerns.”
“The injunction herein issued is, at its core, a preservative relief that would ensure that the rights of both management and labor are considered, and their existence or livelihood sustained,” it stressed.
Labor groups react
Labor groups, however, criticized the decision, with the Nagkaisa Labor Coalition calling it “a legal bombshell because it brings the conflict between general procedural remedies and special labor legislation into sharp focus.”
Even with a P10-billion bond, Nagkaisa argued that it will not immediately provide relief to workers compared to the implementation of the first tranche of the wage hike worth P60.
“Every compensable day of delay means another P60 that a minimum wage worker cannot use for rice, fare, medicine or baon,” it said.
For its part, the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) said “no amount of money should make it acceptable to take away a wage increase from workers who are already struggling to survive.”
“The court has no business stopping workers from receiving a wage increase,” Sentro secretary general Josua Mata said in a statement, as the group urged the court to lift the injunction.
