Metropolitan Bank vs NWPC (2007) G.R.

144322
Fats!
On October 1995, the Regional Tripartite Wages and Productivity Board,
Region II, Tuguegarao, Cagayan RTWPB!, by virtue o" Republic #ct $o% &'('
R%#% $o% &'('!, other)ise *no)n as the Wage Rationali+ation #ct, issued
Wage Order $o% R,(-,. Wage Order!, as "ollo)s/ Section 1% 0pon e1ectivity o"
this Wage Order, all e2ployees3)or*ers in the private sector throughout
Region II, regardless o" the status o" e2ploy2ent are granted an across-the-
board increase o" P15%,, daily%
The Wage Order was published in a newspaper of general circulation on December 2, 1995 and
took effect on Januar 1, 199!" #ts #mplementing $ules were appro%ed on &ebruar 1', 199!" (er
)ection 1* of the Wage Order, an part aggrie%ed b the Wage Order ma file an appeal with the
+ational Wages and (roducti%it ,ommission -+W(,. through the $TW(/ within 10 calendar
das from the publication of the Wage Order"
/anker1s ,ouncil in a letter in2uir to +W(, re2uested for ruling to seek e3emption from
co%erage of the wage order since the members bank are paing more than the regular wage"
+W(, replied that the member banks are co%ered b the wage order and does not fall with the
e3emptible categories" #n another letter in2uir, 4etrobank asked for the interpretation of the
applicabilit of the wage order" +W(, referred it to $TW(/"
"ss#e5 WO+ the wage order is %oid thus it has no legal effect and the $TW(/ acted in e3cess of its
6urisdiction"
$el%! )ection 1, Wage Order +o" $0270* is %oid insofar as it grants a wage increase to emploees
earning more than the minimum wage rate8 and pursuant to the separabilit clause of the Wage
Order, )ection 1 is declared %alid with respect to emploees earning the pre%ailing minimum wage
rate"
The powers of +W(, are enumerated in 9$T" 121" (owers and &unctions of the ,ommission" 7
The ,ommission shall ha%e the following powers and functions5 -d. To re%iew regional wage
le%els set b the $egional Tripartite Wages and (roducti%it /oards to determine if these are in
accordance with prescribed guidelines and national de%elopment plans8 -f. To re%iew plans and
programs of the $egional Tripartite Wages and (roducti%it /oards to determine whether these are
consistent with national de%elopment plans8 -g. To e3ercise technical and administrati%e
super%ision o%er the $egional Tripartite Wages and (roducti%it /oards"
$"9" +o" !:2: declared it a polic of the )tate to rationali;e the fi3ing of minimum wages and to
promote producti%it7impro%ement and gain7sharing measures to ensure a decent standard of
li%ing for the workers and their families8 to guarantee the rights of labor to its 6ust share in the
fruits of production8 to enhance emploment generation in the countrside through industrial
dispersal8 and to allow business and industr reasonable returns on in%estment, e3pansion and
growth"
#n line with its declared polic, $"9" +o" !:2: created the +W(,, %ested with the power to
prescribe rules and guidelines for the determination of appropriate minimum wage and
producti%it measures at the regional, pro%incial or industr le%els8 and authori;ed the $TW(/ to
determine and fi3 the minimum wage rates applicable in their respecti%e regions, pro%inces, or
industries therein and issue the corresponding wage orders, sub6ect to the guidelines issued b the
+W(," (ursuant to its wage fi3ing authorit, the $TW(/ ma issue wage orders which set the
dail minimum wage rates, based on the standards or criteria set b 9rticle 12' of the <abor ,ode"
The ,ourt declared that there are two was of fi3ing the minimum wage5 the &'loor()a*e&
method and the &salar+(eilin*& method" ,-e &'loor()a*e& .et-o% involves t-e 'i/in* o' a
%eter.inate a.o#nt to 0e a%%e% to t-e prevailin* stat#tor+ .ini.#. )a*e rates. On the
other hand, in t-e &salar+(eilin*& .et-o%1 t-e )a*e a%2#st.ent )as to 0e applie% to
e.plo+ees reeivin* a ertain %eno.inate% salar+ eilin*. #n other words, workers alread
being paid more than the e3isting minimum wage -up to a certain amount stated in the Wage
Order. are also to be gi%en a wage increase"
#n the present case, the $TW(/ did not determine or fi3 the minimum wage rate b the =floor7
wage method= or the =salar7ceiling method= in issuing the Wage Order" The $TW(/ did not set a
wage le%el nor a range to which a wage ad6ustment or increase shall be added" #nstead, it granted
an across7the7board wage increase of (15"00 to all emploees and workers of $egion 2" #n doing
so, the $TW(/ e3ceeded its authorit b e3tending the co%erage of the Wage Order to wage
earners recei%ing more than the pre%ailing minimum wage rate, without a denominated salar
ceiling" 9s correctl pointed out b the O)>, the Wage Order granted additional benefits not
contemplated b $"9" +o" !:2:"