FACTS:

The Employers Confederation of the Philippines (ECOP) is questioning the validity of Wage Order No. NCR-0-A dated October 23, 1990, issued by the Regional Tripartite Wages and Productivity Board, National Capital Region. The wage order was promulgated pursuant to Republic Act No. 6727. On October 15, 1990, the Regional Board issued Wage Order No. NCR-01, increasing the minimum wage in the National Capital Region by P17.00 daily. ECOP appealed to the National Wages and Productivity Commission, but the appeal was dismissed. The subject of the petition is the grant of an "across-the-board" wage increase to workers already receiving more than minimum wage rates. ECOP argues that the boards may only prescribe minimum wages and not determine salary ceilings. ECOP seeks the nullification of the wage order. The Solicitor General argues that the wage order aims to correct wage distortions and the salary-ceiling method is intended to rectify such distortions.

ISSUES:

1. Whether Wage Order No. NCR-01-A, which grants an across-the-board wage increase to workers already being paid more than existing minimum wage rates, is valid.

2. Whether the Regional Tripartite Wages and Productivity Board has the authority to determine "salary ceilings" under Republic Act No. 6727.

RULING:

1. The Supreme Court agrees with the Government that the salary-ceiling method, as used in Wage Order No. NCR-01-A, is intended to correct wage distortions. The wage order is valid as it aims to rectify wage disparities and promote wage equality.

2. The Regional Tripartite Wages and Productivity Board has the authority to establish "salary ceilings" under Republic Act No. 6727. The law confers to the boards the power to prescribe minimum wage rates and to resolve wage distortions.

PRINCIPLES:

• The salary-ceiling method is a valid means of determining wages to correct wage distortions.

• The Regional Tripartite Wages and Productivity Boards have the authority to establish "salary ceilings" under Republic Act No. 6727.