Metro Manila Minimum Wage Hike Suspended by Court Order

The implementation of the ₱85 daily wage hike in Metro Manila, slated to take effect on July 25, will not push through for now. Under NCR Wage Order No. 27, minimum wage earners in Metro Manila's private sector were set to receive the increase. However, the Pasig Regional Trial Court (RTC) issued a temporary restraining order (TRO) on July 30. This order came in response to a petition filed by two construction companies, Readycon Trading and Construction Corp. and R-II Builders, Inc. The companies sought declaratory relief concerning NCR Wage Order No. 2, a court ruling that declares the rights of a party in relation to an issue or government order affecting them. The court cited 'extreme urgency' and the possibility of 'grave injustice and irreparable injury' if the TRO was not issued. The order mandates the suspension of the wage hike implementation until August 13, pending the resolution of the petitioners' request for declaratory relief. The court had previously issued a 'status quo ante order' on July 24, directing the maintenance of the previous minimum wage. A hearing for the petitioners' separate request for a writ of preliminary injunction is scheduled for August 3, with parties required to submit supporting or opposing evidence. Labor Secretary Francis Tolentino expressed dismay but affirmed compliance with the court's order. "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," he stated. The Department of Labor and Employment (DOLE) is coordinating with the Office of the Solicitor General. Tolentino clarified that workers who have already received the adjusted wage do not need to return the excess amount, as they had a "vested right" to it at the time of receipt. Sarah Buena Mirasol, Regional Director of DOLE-NCR and chairperson of Metro Manila's Regional Wage Board, maintained that the wage increase followed due process. "We went through the process. It was a discussion among the members of the Board, and all were given the opportunity. 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," she said. Various labor groups have opposed the RTC's move. Sonny Matula, president of the Federation of Free Workers, criticized the court for issuing a TRO that he claims is prohibited by the Labor Code. The Trade Union Congress of the Philippines stated that employers should appeal to the National Wages and Productivity Commission (NWPC) if they wish to question the Wage Order, rather than seeking relief in other forums.