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

‘Thirteenth Congress
‘Session

3786

HB.No._*

Tntroduced by Representative Carlos 0. Cojuangco

EXPLANATORY NOTE,

[Eugene Staley in The Future of Underdeveloped Countries (1961) said tat,“ One of the real
problems of economic development nowadays, which did not exist in earlier times, isthe
temptation of underdeveloped countries to imitate the advanced social legislation of highly
developed countries, of even to go them one better, without first imitating productivity. It
requires a high quality of leadership, both in labor movement and the government, to select
those items of modern social legislation which can be used to smooth the path of
_development and prevent abuses without stifling economic growth, and to reject those which
‘cannot be supported until more growth has occurred.”

This sums up the balancing act that the government has to do. It has to provide for an
atmosphere suitable forthe generation of investments to prove for employment opportunities.
Incentives to capitalists cannot, however, be atthe expense ofthe labor force.

In 1995, the PEZA Law was passed primarily to promote countryside development. ‘Thus,
incentives were given to locators or enterprises within the ECOZONES. In the process,
many were saying that the labor force within these zones may have been placed in a
‘compromised positon.

“This bill seeks to grant board, lodging and/or housing benefits to ECOZONE employees and.
personnel. It aims to redress the primary quandary of an ECOZONE employee who has been
forced by circumstances to be away from the comforts of his home. It likewise addresses the
ced ofa similar employee who may long have wanted to have a place, proximate to where
he works, his new home, but may not afford to buy i In a simple way, it seeks to balance
the welfare of these laborers with their employers.

In view ofthe foregoing, early passage of this bill is eumestly requested,

Lk OD Ge


Republic ofthe Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

"Thirteenth Congress
First Regular Session

3786
HB.No.

Tntroduced by Representative Carlos 0. Cojuangco

AN ACT

PROVIDING FOR BOARD, LODGING AND HOUSING BENEFITS TO
EMPLOYEES AND PERSONNEL IN ECOZONE ENTERPRISES,
AMENDING FOR THE PURPOSE SECTION 37 OF REPUBLIC ACT NO.
7916, OTHERWISE KNOWN AS THE ‘SPECIAL ECONOMIC ZONE
ACT OF 1995” AND FOR OTHER PURPOSES

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

Section 1. Short Title - This Act shall be known and cited as the “Ecazone Housing
Act”

Section 2. Board, Lodging and Housing to Ecozone Employees - Section 37 of
Republic Act No. 7916, otherwise known as the “The Spevial Economic Zone Act of 1995”
is hereby amended to read as follows: !

“Sec. 37, Labor and Management Relations - EXcept as otherwise provided in
inthis Ac, labor and management relations in the ECOZONE shall be governed
by the existing Labor Code ofthe Philippines. Employees and personnel inthe

ECOZONE enterprises shall receive salaries ad benefits and shall enjoy working
‘conditions not less than those provided under the Philippine Labor Code and other
relevant laws, issuances, rules and regulations of the Philippine Government and
the Department of Labor and Employment.”

‘SIXTY (60) DAYS AFTER THE PASSAGE OF THIS ACT INTO LAW, IT
SHALL BE MANDATORY FOR EXISTING AND NEW ENTERPRISES IN
ECOZONES TO PROVIDE FOR BOARDING AND/OR LODGING
FACILITIES TO ALL OF ITS EMPLOYEES AND PERSONNEL. THE PEZA


ENTERPRISE MAY BY ITSELF OR JOINTLY WITH ANOTHER OR A GROUP
OF ENTERPRISES SHOULDER THE COST OF THE BUILDING AND
DEVELOPMENT OF SAID FACILITIES.

‘THE FAIR AND REASONABLE VALUE FOR THE USE OF THESE FACILITIES
MAY BE DEDUCTED AGAINST THE WAGES OF THE PERSONNEL AND

- EMPLOYEES. THE SECRETARY OF LABOR AND EMPLOYMENT iS,
HEREBY AUTHORIZED TO FIX FROM TIME TO TIME THE FAIR AND
REASONABLE VALUE OF THE BOARD AND LODGING FACILITIES.

SUXTY (60) DAYS AFTER THE PASSAGE OF THIS ACT INTO LAW, THE
PEZA IN COORDINATION WITH THE NATIONAL HOUSING AUTHORITY
(NHA) IS HEREBY MANDATED TO IDENTIFY AND DESIGNATE AREAS.
INSIDE OR OUTSIDE, BUT WITHIN THE PROXIMITY OF ECOZONES,
SUITABLE FOR THE CONSTRUCTION AND DEVELOPMENT OF LOW COST
HOUSING SUBDIVISIONS EXCLUSIVELY FOR ECOZONE EMPLOYEES
‘AND PERSONNEL.

‘THE PEZA AND THE NHA MAY TAP THE RESOURCES OF ECOZONE.
ENTERPRISES WHO ARE WILLING TO OFFER HOUSING BENEFITS TO
ITS EMPLOYEES,

Section 3. Repealing Clause All laws, decrees, executive orders, and rules and
regulations, of parts thereof, which are inconsistent with this Act, are hereby repealed or
‘modified accordingly,

Section 4. Separability Clause - If for any reason, any provision of this Act is
declared invalid or unconstitutional, the other parts not affected thereby shall continue to be
{nfl foree and effect. :

‘Section 5. Effectivity - This Act shall take effect thirty (30) days after its complete
publication in a newspaper of general circulation, *

Approved.