Republic of the Philippines RECEIVED

HOUSE OF REPRESENTATIVES oareNOV_0,7
Quezon City, Metro Manila we
Eighteenth Congress
First Regular Session
5380
House Bill No.

Introduced by Honorable Lucy Marie Torres-Gomez

EXPLANATORY NOTE

State policy dictates the need to strengthen the fight of the worker in the sugar industry to
their just share in the fruits of production by augmenting their income and among other schemes,
institutionalizing the mechanism among the partners in the sugar industry to enable the worker and
their families to enjoy a decent living.

It is therefore high time to revisit the existing policies, plans and programs that cover this
ailing area of our agricultural industry with the aim to balance the interest of the various
stakeholders.

The main focus should be the policy of the state to ensure the viability of the sugar industry
and provide the workers with living wages, incentives for productivity and equitable distribution
of income and wealth along the imperatives of economic and social development.

In this regard, there is a need to amend certain provisions of Republic Act No. 6982, or the
Social Amelioration Law which institutionalizes the social amelioration program in the Philippines
through the provisions of workers’ benefits, and establish the tripartite mechanism for the
participation of the planters, millers and workers in the management of the Social Amelioration
Fund.

Under Republic Act No, 6982, the implementation of the program is financed through the
collection of Ten Pesos (Php10.00) for every picul of sugar which, under the implementing Rules
and Regulations formulated by the Secretary of Labor, was converted to Seven Pesos and Ninety
Centavos (Php 7.90513) for every LKG bag of sugar produced by each sugarcane planters.

Of the amount collected, 80% is utilized for the contribution of a productivity-based cash
bonus to the laborers, while 20% is allotted for socio-economic related projects, specifically:
* 9% for socio-economic projects;
© 5% for death benefit program;
* 3% for matemity benefits program;


* 3% for administrative expenses of the Sugar Tripartite Council (STC), District
Tripartite Council (DTC) and the Bureau of Workers with Special Concerns
(BWSC).

There is thus need for the law to be amended to make it more dynamic and
adaptive to the changing times. Hence, a simple conversion into metric system from
picul to LKG, which is an intemationally-accepted unit of measurement, while
maintaining the P10-lien, will automatically increase the fund.

Notably, health, medical and educational projects are excluded from the ‘socio-
economic projects’ provided for under Section 10b of the said Act. Further, only 9%
is allocated for the said purpose. Previous studies show that many of the sugar
workers and their children are still plagued by poor health and are unable to send
most children to schools.

Definitely, a realignment of the foregoing allotted percentage will not debilitate
the other area of coverage of this fund.

In the light of the foregoing, there is an imperative need to amend certain

provisions of RA 6982.
Dy
LUCY qT ‘S-GOMEZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session

House Bill No. 380

Introduced by Honorable Lucy Marie Torres-Gomez

AN ACT
FURTHER STRENGHTHENING THE SOCIAL AMEOLIORATION PROGRAM IN
‘THE SUGAR INDUSTRY. AMENDING FOR THIS PURPOSE CERTAIN PROVISIONS
OF REPUBLIC ACT NUMBERED 6982 ENTITLED, “AN ACT STRENGTHENING THE
SOCIAL AMELIORATION PROGRAM IN THE SUGAR INDUSTRY, PROVIDING
THE MECHANICS FOR ITS IMPLEMENTATION, AND FOR OTHER PURPOSES”

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled

SECTION 1. Section 3 of Republic Act Numbered 6982 is hereby amended to read, as
follows:

SEC. 3. Composition — The Sugar Tripartite Council shall consist of
TWELVE (12) [ten (10)] members composed of the Secretary of Labor and
Employment or his duly authorized representative as ex officio Chairman; one (1)
representative from the Sugar Regulatory Administration, who shall likewise sit in
an ex officio capacity, FOUR (4) [two] representatives from the PLANTERS
[millers] sector; two (2) representatives from the MILLERS [millworkers] sectors;
two (2) representatives from the mill workers sectors; and two (2) representatives
from the field workers sectors, as members.

The representatives from the planters[, millers and workers] sectors shall be
appointed by the Secretary of Labor and Employment from A LIST OF NOMINEES
SUBMITTED BY THE TOP FOUR (4) PLANTERS FEDERATION [among the
nominees of the planters, millers and workers organizations, respectively].

THE REPRESENTATIVES FROM THE MILLERS’ SECTOR SHALL BE
CHOSEN BY THE SECRETARY OF LABOR AND EMPLOYMENT FROM A
LIST OF NOMINEES SUBMITTED BY THE TOP TWO (2) MILLERS
FEDERATIONS.


THE REPRESENTATIVES FROM THE MILL WORKERS AND FIELD
WORKERS SECTORS SHALL COME FROM LEGITIMATE LABOR
ORGANIZATIONS OR UNIONS OF SUCH MILL OR FIELD WORKERS.

SEC. 2. Section 6 of R. A. No. 6982 is hereby amended to read as follows:

SEC. 6. District Tripartite Councils ~ (a) Whenever necessary, the
Secretary of Labor and Employment shall, upon recommendation of the Sugar
Tripartite Council, create a District Tripartite Council in each milling district in the
Philippines to ensure greater participation by planters, millers and workers in the
social and economic programs and policy determination under this Act. The District
Tripartite Council shall consist of seven (7) members composed of the Regional
Director of the DOLE asex-officio Chairman; two (2) representatives from the
planters’ sector, one (1) representative from millers’ sectors, two (2)
representatives from the field workers sector; and one (1) representative from the
mill workers sector, as members. THE REPRESENTATIVES FROM THE MILL
WORKERS AND FIELD WORKERS SECTORS SHALL COME FROM A
LEGITIMATE LABOR ORGANIZATION OR UNION OF SUCH MILL OR
FIELD WORKERS.

(b) The representatives from the planters, millers and workers sectors shall
be appointed by the Secretary of Labor and Employment from among the nominees
of the planters, millers and workers organizations, respectively, for a term of three
(3) years.

SEC. 3. Section 7 of R. A. 6982 is hereby amended to read as follows:

SEC. 7. Lien; Distribution; Collection and Remittances ~ (a) Effective on
sugar crop year 2011-2012 [1991-1992] alien of TEN [Five] Pesos (Php 10.00)
[(P5.00)] per LKG [picul]OR FIFTY-KILO BAG of sugar shall be imposed on the
gross production of sugar to primarily augment the income of sugar workers, and
to finance social and economic programs to improve their livelihood and well-
being: Provided, That THE SECRETARY OF LABOR AND EMPLOYMENT
MAY, UPON THE RECOMMENDATION OF THE SUGAR TRIPARTITE
COUNCIL, ALLOW THE INCREASE OF NOT MORE THAN [there shall be an
automatic additional lien of] one peso(P1.00) [for] every two (2) years for the
succeeding ten (10) years from the effectivity of this Act, TAKING INTO
CONSIDERATION THE CIRCUMSTANCES ADVERSELY AFFECTING THE
COST OF PRODUCING SUGAR AND THE DECLARATION OF POLICY OF
THIS ACT{; Provided, further, That the Secretary of Labor and Employment may,
upon the recommendation of the Sugar Tripartite Council, suspend or reduce the
amount of the automatic additional lien herein authorized whenever circumstances
occur adversely affecting or causing undue increase in the cost of producing sugar,
taking into consideration the declared policy of this Act.]


THE AMOUNT HEREIN IMPOSED SHALL BE BORNE BY THE
SUGAR PLANTERS AND MILLERS IN PROPORTION TO THEIR
CORRESPONDING MILLING SHARE AND SAID AMOUNTS SHALL
CONSTITUTE A LIEN ON THEIR SUGAR QUEDANS AND/OR
WAREHOUSE RECEIPTS.

SEC. 4. Section 9 of R. A. 6982 is hereby amended to read as follows:

SEC. 9. Undistributed Cash Bonus. Any undistributed amount due the
workers shall, within three (3) months, be remitted to and PLACED IN A SPECIAL
FUND TO BE ADMINISTERED BY THE SUGAR TRIPARTITE COUNCIL
FOR A PERIOD OF ONE (1) YEAR {held in trust by the DOLE for a period of
three (3) years] from the date of remittance, after which it shall be deemed forfeited
TO BE ADDED AND TRANSFERRED TO DTC CONCERNED [in favor of the
socioeconomic program for sugar workers].

It shall be the duty of the Secretary of Labor and Employment to make at
least three publications before the end of said three (3) year period and to make the
corresponding radio announcements in radio stations operating in the area to inform
the beneficiaries concerned regarding their unclaimed cash bonus. The said
publication shall be made through local newspaper and by posting in conspicuous
public places in the area where the concemed beneficiaries reside.

THE DTC SHALL ALLOT FIFTY PERCENT (50%) OF THE
FORFEITED AMOUNT, INCLUDING ITS INTERESTS, TO FINANCE
EDUCATIONAL PROGRAMS AND THE DEPENDENTS OF THE WORKERS
BY DULY ACCREDITED TRAINING CENTERS BY THE TECHNICAL
EDUCATION SKILLS AND DEVELOPMENT AUTHORITY (TESDA). THE
OTHER FIFTY PERCENT (50%) OF THE SAID FUND SHALL BE ALLOTED
TO FINANCE THE VARIOUS PROJECTS OF THE DTC CONCERNED [The
forfeited amount, including its interests shall be utilized for projects or programs in
favor of the sugar workers as recommended by the Sugar Tripartite Council].

SEC. 5. Section 10 of R. A. 6982 is hereby amended to read as follows:

SEC.10. Socioeconomic Plans and Programs; Operation of Councils. — On
recommendation of the Sugar Tripartite Council, the Secretary of Labor and Employment
shall use the twenty percent (20%) share herein allocated for socio-economic programs,

and any and all incomes or interests thereon, for the following:

(a) Five percent (5%) for sugar workers death benefit program;

(b) TEN [Nine] percent (10%) [(9%)] for socioeconomic projects WHICH SHALL
INCLUDE, AMONG OTHERS, HEALTH, MEDICAL AND EDUCATIONAL
BENEFITS for the sugar workers undertaken by the Bureau of Rural Workers,
planters/millers organization, workers organizations, and OTHER FOUNDATIONS OF


a)

SUGAR PLANTERS/MILLERS [/or the Sugar Industry Foundation, Inc.]: PROVIDED,
THAT EDUCATION BENEFITS SHALL NOT BE LIMITED TO FORMAL
EDUCATION BUT ALSO TECHNICAL SKILLS TRAINING AT TRAINING
CENTERS DULY ACCREDITED BY THE TESDA;

(c) TWO AND A HALF (2.5%) PERCENT [Three percent (3%)] for [maternity benefits
for] the women sugarworkers in addition to existing benefits granted by law or collective
bargaining agreements: Provided, however, ThatA WOMAN SUGAR WORKER WHO.
DELIVERS A CHILD OR UNDERGOES THERAPEUTIC ABORTION SHALL BE
ENTITLED TO A MATERNITY BENEFIT FOR EVERY SUCH DELIVERY OR
THERAPEUTIC ABORTION; [the matemity benefits provided therein shall be paid only
for the first four deliveries.) PROVIDED, FURTHER, THAT WOMEN SUGAR
WORKERS WHO ARE UNEMPLOYED OR ON LEAVE OF ABSENCE SHALL BE
ENTITLED TO THIS MATERNITY BENEFIT WHO, AT THE TIME OF SUCH
DELIVERY OR THERAPEUTIC ABORTION, SHALL HAVE HAD A RECORD OF
PRIOR SERVICE OF AT LEAST TWO (2) YEARS IN A SUGAR MILL OR SUGAR
FARM AND AT LEAST NINETY (90) DAYS OF ACCUMULATED SERVICE
DURING EACH CROP YEAR.

WOMEN SUGAR WORKERS WHO ARE MANAGERIAL EMPLOYESS,
ALTHOUGH MAY RECEIVE MATENITY OR SIMILAR BENEFITS FROM THEIR
RESPECTIVE EMPLOYERS, SHALL NOT BE ENTITLED TO THE MATERNITY
BENEFITS PROVIDED HEREIN.

SMALL FARM CULTIVATORS SHALL BE ENTITLED T TO THE MATERNITY
BENEFITS HEREIN PROVIDED.

(4) TWO AND A HALF PERCENT (2.5%) [Thee Percent (3%)] for the administrative
expenses of the Sugar Tripartite Councils and the Bureau of Workers with Special
Concerns of the Department of Labor and Employment in implementing this Act.

SEC. 6. There shall be added a new provision, Section 10A, which shall read as follows:

SEC. 10A. THE SUGAR WORKERS’ MATERNITY BENEFIT FUND.

PURSUANT TO PARAGRAPH (C) OF THE IMMEDIATELY PRECEDING
SECTION, THERE SHALL BE A WORKERS’ MATERNITY BENEFIT FUND
(SWMB) TO BE ADMINSITERED AND MANAGED BY THE DOLE, THROUGH
THE BUREAU OF WORKERS WITH SPECIAL CONCERNS AND ALL
INCOMES AND INTERESTS THEREOF SHALL BE HELD IN A SPECIAL
TRUST ACCOUNT IN AN AUTHORIZED GOVERNMENT DEPOSITARY BANK.


b)

c)

a)

THE BUREAU SHALL PROVIDE THE SWMB RESERVE FUND TO COVERED
REGIONAL OFFICES AND SUBSEQUENT RELEASES OF SAID FUND TO THE
REGIONAL OFFICES SHALL BE EFFECTED THROUGH FUND
REPLENISHMENT.

CONDITION AND REQUIREMENTS FOR ENTITLEMENT. — A CLAIM FOR
MATERNITY BENEFITS SHALL BE FILED WITH THE REGIONAL OR FIELD
OFFICE HAVING JURISDICTION OVER THE WORKPLACE OF RESIDENCE OF
THE COVERED WOMAN WORKER, UPON RECOMMENDATION BY THE
ACCREDITED PLANTERS’ ASSOCIATION/COOPERATIVES AND MILLS
THROUGH THEIR RESPECTIVE AUTHORIZED REPRESENTATIVE/S, WITHIN
THREE (3)YEARS COUNTED FROM THE DATE OF THE DELIVERY OR
THERAPEUTIC ABORTION, OTHERWISE THE CLAIM SHALL BE BARRED.

DOCUMENTATION AND REPORTING. - IN ADDITION TO THE REQUIRED
FINANCIAL REPORTS FOR LIQUIDATION OF CASH ADVANCES ON THE
SWMBF, THE REGIONAL OFFICE SHALL SUBMIT THE STATUS OF THE
IMPLEMENTATION OF THE PROGRAM ON A MONTHLY BASIS.

ANY UNUSED PORTION OF THE SWMBF SHALL BE TRANSFERRED AND
ADDED TO THE 10% SOCIO-ECONOMIC FUND OF THE SPECIFIC MILL
DISTRICT FOR THE FOLLOWING CROP YEAR.
SEC. 7.There shall be added a new provision, Section 10b, which shall read asfollows:
SEC. 10B. SUGAR WORKERS’ DEATH BENEFIT PROGRAM.
THERE SHALL BE A SUGAR WORKERS’ DEATH BENEFIT FUND (SWDBF) TO BE

ADMINISTERED AND MANAGED BY THE DOLE, THROUGH THE BUREAU OF
WORKERS WITH SPECIAL CONCERNS AND ALL INCOMES AND INTERESTS


b)

°c)

THEREOF SHALL BE HELD IN A SPECIAL TRUST ACCOUNT IN AN
AUTHORIZED GOVERNMENT DEPOSITARY BANK.

THE BUREAU SHALL PROVIDE THE SWDBF RESERVE FUND TO COVERED
REGIONAL OFFICES AND SUBSEQUENT RELEASE OF SAID FUND TO THE
REGIONAL OFFICES SHALL BE EFFECTED THROUGH FUND REPLENISHMENT.

CONDITIONS AND REQUIREMENTS FOR ENTITLEMENT. ~ A DEATH BENEFIT
CLAIM SHALL BE FILED WITH THE REGIONAL OFFICE OR ITS PROVINCIAL
OFFICE HAVING JURISDICTION OVER THE WORKPLACE OR RESIDENCE OF
THE DECEASED COVERED WORKER OF SMALL FARM CULTIVATOR, UPON
RECOMMENDATION BY THE ACCREDITED PLANTERS’
ASSOCIATION/COOPERATIVES AND MILL THROUGH THEIR RESPECTIVE
ACCREDITED REPRESENTATIVES, WITHIN THREE (3) YEARS COUNTED FROM.
THE DATE OF DEATH OF SUCH COVERED WORKERS, OTHERWISE THE CLAIM.
SHALL BE BARRED; PROVIDED, THAT:THE APPLICATION SHALL BE
SUPPORTED BY AN AFFIDAVIT EXECUTED BY THE CLAIMANT ATTESTING TO
THE RELATIONSHIP WITH THE DECEASED COVERED WORKER OR SMALL
FARM CULTIVATOR, AND THE FACT THAT THE CLAIMANT IS THE
BENEFICIARY TO THE EXCLUSION OF THE OTHERS.

DOCUMENTATION AND REPORTING. IN ADDITION TO THE REQUIRED
FINANCIAL REPORTS FOR LIQUIDATION OF CASH ADVANCES ON THE
SWDBF, THE REGIONAL OFFICE SHALL SUBMIT THE STATUS OF THE
IMPLEMENTATION OF THE PROGRAM ON A MONTHLY BASIS.

ANY UNUSED PORTION OF THE SWDBF SHALL BE TRANSFERRED AND
ADDED TO THE 10% SOCIO-ECONOMIC FUND OF THE SPECIFIC FUND OF THE
SPECIFIC MILL DISTRICT FOR THE FOLLOWING CROP YEAR.

SEC. 8. There shall be added a new provision, Section 10C, which shall read, as follows:


a)

b)

SEC. 10C. SPECIAL EDUCATION FUND (SEF)

THERE SHALL BE A SPECIAL EDUCATION FUND TO BE ADMINISTERED

AND MANAGED BY THE DOLE, THROUGH THE BUREAU OF WORKERS WITH
SPECIAL CONCRNS AND ALL INCOMES AND INTERESTS THEREOF SHALL BE
HELD IN A SPECIAL TRUST ACCOUNT IN AN AUTHORIZED GOVERNMENT
DEPOSITARY BANK.

THE BUREAU SHALL RELEASE THE SAID FUND TO THE DTC CONCERNED AND
SUBSEQUENT RELEASE OF THE SAID FUND TO THE DTCS SHALL BE
EFFECTED THROUGH FUND REPLENISHMENT.

CONDITIONS AND REQUIREMENTS FOR ENTITLEMENT — THE DTC SHALL.
RELEASE THE SAID FUND TO TESDA-ACCREDITED TRAINING CENTERS UPON
SUBMISSION OF PROOF OF QUALIFIED BENEFICIARIES FROM LEGITIMATE
SUGAR WORKERS AND THEIR BENEFICIARIES. THE DTC MAY ALSO AWARD
SCHOLARSHIP TO SUGAR WORKERS AND THEIR DEPENDENTS FOR PRIMARY,
SECONDARY AND TERTIARY EDUCATION IN GOVERNMENT EDUCATIONAL,
INSTITUTIONS AS MAY BE DETERMINED BY THE SECRETARY UPON
RECOMMENDATION BY THE STC.

SEC. 9. There shall be added a new provision, Section 10D, which shall read, as follows:

SEC. 10D. ANNUAL OPERATION BUDGET PREPARATION. THE BUREAU
OF WORKERS WITH SPECIAL CONCERNS SHALL PREPARE AN ANNUAL
OPERATIONAL BUDGET RELATIVE TO THE IMPLEMENTATION OF THIS
ACT FOR APPROVAL BY THE SECRETARY UPON RECOMMENDATION
OF THE STC AND THE DTC CONCERNED.


SEC. 10, The Secretary of Labor and Employment shall implement the sharing as provided
herein and, upon consultation with the Sugar Tripartite Council, promulgate such rules and
regulations as may be necessary to carry out the provisions of this Act

SEC. 11. All laws, decrees, executive orders and rules and regulations or parts thereof
inconsistent with any provision of this Act are hereby repealed, modified, superseded or amended

accordingly.

SEC. 12.This Act shall take effect fifteen (15) days after its complete publication in the
Official Gazette or in at least two (2) national newspapers of general circulation.

Approved,