The two companies behind the petition to put on hold the long-awaited P85 wage hike in Metro Manila bagged billions worth of contracts from the Department of Public Works and Highways (DPWH).

Based on Rappler’s analysis of DPWH contracts, Readycon Trading and Construction Corporation cornered P9.07 billion worth of contracts from 2016 to 2026.

Meanwhile, R-II Builders secured P3.3 billion worth of DPWH contracts from 2019 to 2022. Of this, three contracts with a total cost of P503.3 million were a joint venture between R-II Builders and Arconic Inc.

Following the two companies’ petition, Pasig Regional Trial Court’s Branch 152 issued a temporary restraining order (TRO) against the regional wage board and the National Wages and Productivity Commission, pulling the brakes on the wage hike.

They argued that the abrupt increase would disrupt projects priced before the wage order was issued. Readycon estimated an immediate additional payroll expense of around P409,257 attributable to the minimum wage increase alone.

“Paanong malulugi itong mga kompanyang ito kung coming from secretary of DPWH, they were able to secure billions pesos of contracts and yet they cannot pay their workers a measly P60 increase from the P85 na dagdag sahod ng mga manggagawa?” Kamanggagawa Representative Eli San Fernando said during the House budget hearing of DPWH on Wednesday, August 26.

(How can these companies claim they are losing money when, according to the DPWH secretary, they were able to secure billions’ worth of contracts, yet they cannot afford to pay their workers even a measly P60 increase out of the P85 wage hike granted to workers?)

The first P60 tranche had already taken effect on July 25, raising the daily minimum wage for non-agricultural workers from P695 to P755. An additional P25 had been scheduled for January 20, 2027, which would have brought the rate up to P780.

Companies’ sketchy background

DPWH Secretary Vince Dizon said Readycon is the “number one” company in asphalt and road construction.

In early August, however, Dizon expressed dismay after seeing portions of EDSA riddled with potholes shortly after Readycon rehabilitated the road. The damage emerged following heavy rain brought by the southwest monsoon or habagat.

Dizon said Readycon had already repaired the potholes.

In 2014, the Commission on Audit flagged Readycon over defects in the C-5 Extension project.

According to Readycon’s website, the company was founded in 1988 and holds a Quadruple A (AAAA) license from the Philippine Contractors Accreditation Board.

Aside from the DPWH, Readycon has also secured government contracts from the Manila International Airport Authority, Philippine Ports Authority, National Housing Authority, and city and municipal engineering offices.

Court documents identify Jesus Ignacio as the company’s president.

Meanwhile, Rappler’s investigation published in April found that R-II Builders was involved in a subcontracting scheme.

Documents the company filed with the Securities and Exchange Commission in 2025 show that R-II Builders is owned by Reghis Romero II, the father of former 1-Pacman party-list representative Mikee Romero.

However, court documents related to the wage hike identify a certain Carlos B. Carlos as the president of R-II Builders.

Labor Code violation?

Labor Secretary Francis Tolentino said the department was saddened by the decision but would respect the court’s ruling.

“Malungkot ako para sa mga manggagawa pero susunod tayo sa utos ng husgado,” Tolentino said in a statement. (I feel sad for the workers, but we will abide by the court’s order.)

Senate committee on labor and employment Chairperson Joel Villanueva and Vice Chairperson Raffy Tulfo, meanwhile, questioned the legality of the issuance of a TRO for the wage hike.

“No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal or other entity against proceedings before the Commission or the Regional Boards,” Article 126 of the Labor Code reads.

The Federation of Free Workers (FFW) also questioned the validity of the TRO.

“Hindi namin sinasabing bawal magreklamo ang employer. Ang sinasabi namin, may tamang forum ang reklamo. Hindi homeless ang wage dispute. May address na ibinigay ang batas,” FFW President Sonny Matula said.

(We are not saying that employers are prohibited from filing a complaint. What we are saying is that there is a proper forum for such complaints. Wage disputes are not homeless. The law has designated where they should be addressed.)

Because of the TRO, minimum wage earners in Metro Manila have effectively been deprived of P1,560 each, Matula said in a statement on Tuesday, August 25. – with reports from Lance Spencer Yu/Rappler.com