Pasig RTC extends suspension of NCR wage hike

MANILA, Philippines — The Pasig City Regional Trial Court (RTC) Branch 152 on Thursday issued a writ of preliminary injunction extending the suspension of the P85 daily minimum wage hike in the National Capital Region (NCR) pending its determination of the petition filed by two construction companies.

In a 14-page order issued by Presiding Judge Marie Joyce Manongsong, the court said it granted the prayer of Readycon Trading and Construction Corp. and R-II Builders for a writ of preliminary injunction against the wage hike, with a bond of P10 billion.

READ: Pasig court issues TRO on implementation of P85 NCR minimum wage hike

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The order will suspend the implementation of NCR Wage Order No. 27, which mandated the P85 daily minimum wage hike, pending the court’s “determination of the merits of the petition for declaratory relief” filed by the two companies on July 23.

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The Pasig RTC previously issued a temporary restraining order (TRO) against the minimum increase on July 30, which remained in effect until Aug. 13, Thursday.

The first tranche of the wage increase, amounting to P60, was supposed to have taken effect on July 25, while the second tranche worth an additional P25 will be implemented on Jan. 20 next year.

In issuing the preliminary injunction, the court said it is “cognizant of the burden that this order would cause the millions of workers in the National Capital Region” and that it is “not indifferent to the plight of the workforce, particularly the minimum wage earners.”

However, “given the unique circumstances of this 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,” it said.

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“Specifically, this court finds that this case genuinely presents a novel issue regarding the binding nature of Article 124 of the Labor Code,” added the Pasig RTC.

READ: SC urged to review TRO on Metro Manila wage hike

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It noted that under Article 124 of the Labor Code, which provides the standards or criteria for minimum wage fixing, 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,” said the Pasig RTC.

The court also noted that the Regional Tripartite Wages and Productivity Board (RTWPB) in NCR relied on information gathered from attendees in various public consultations when it determined the wage increase, which Readycon and R-II alleged were “insufficient representatives of their respective sectors.”

Hence, the court said “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.”

Moreover, the court 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 the “grave and urgent concerns” of the two companies.

“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 said.

READ: How Metro workers will budget P85 wage increase

Labor groups denounced the decision of the Pasig RTC, with the Nagkaisa Labor Coalition saying that the order is “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 the amount 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.

Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) echoed the sentiment in another statement, saying that “no amount of money should make it acceptable to take away a wage increase from workers who are already struggling to survive.”

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“The court has no business stopping workers from receiving a wage increase,” said Sentro secretary general Josua Mata, as the group urged the court to lift the injunction. /das/gsg