Quezon City

SIXTEENTH CONGRESS
First Regular Session

1994

HOUSE BILL NO.

Introduced by Honorable Anthony M. Bravo and Honorable
Cresente C. Paez

EXPLANATORY NOTE

This bill seeks to provide employment in communities where extractive industries are

engaged in the development and exploitation of natural resources. More often than not, these

extractive industries such as mi

18, quarrying, cement manufacture, logging, power-generation
by steam (geothermal) or water (hydro-electric) cart off the national wealth without even sharing
their profits in the form of benefits with local residents. In fact, in most cases, these extractive
industries, after they had taken away the natural wealth of these communities, leave these
communities poorer than before the extraction of their wealth

The Constitution in Article X, Section 7, however, gives the mandate that local

governments shall have an equitable share in the proceeds derived from the utilization and

development of the natural resources, including the sharing of revenue with the inhabitants by

way of direct benefits. This Congress can do no less, by enacting legislation to enhance this

constitutional mandate for the benefit of the residents of these communities.

In substance, this bill seeks to amendsthe Labor Code, as amended, to compel these
extractive industries to provide preferential employment to residents of these communities where

they exploit and utilize the natural wealth.

HON. ANTHONY M. BRAVO HON. cue TE C-PAEZ


Republi pines

House of Representatives
Quezon ¢

SIXTEENTH CO:

First Regular

HOUSE BILL NO.

Introduced by Honorable Anthony M. Bravo and Honorable
Cresente C. Paez

AN ACT
MANDATING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL.
RESOURCES TO GIVE PREFERENTIAL EMPLOYMENT TO LOCAL RESIDENTS,
AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPINES

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

TION 1. A new title is hereby added to Book I of the Labor Code of the Philippines

which shall read as follows.

Title I. Employment of Residents in Industries Engaged in the Development and
Exploitation of Natural Resources

Article 43. Definition. Industries engaged in the development and exploitation of natural
resources shall include corporations, partnerships, associations, individuals engaged in mining,
quarrying, manufacture of cement, logging, generation of power by steam (geothermal) or water

(hydro-electric), oil drilling and other extractive activities

Resident:

all mean those who have resided for a period of at least one (1) year in the
Province or City where the activity is conducted and have a evinced a desire to reside therein
permanently

Article 44. Corporations, partnerships, associations or individuals engaged in the

development and exploitation of natural resources as defined in the preceding section shall give

preference to the employment of residents of the Province or City where such activities are


conducted; provided, however, that the employment of managerial employees, shall only be
made upon certification by the Bureau of Employment Services that no residents are qualified for
such positions

Article 45. A violation of the preceding section shall be deemed unlawful and shall be

prosecuted and punished under Articles 288 and 289 of this Code

SE

ION 2. Section 43 is hereby renumbered as Section 46, Section 46 as Section 47
and the succeeding sections of the Labor Code of the Philippines are hereby renumbered
accordingly

SECTION 3. Effectivity. - This Act shall take effect fifteen (15) days after its publication

in a newspaper of general circulation

Approved.