07, AUG 2013
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
Sixteenth Congress
First Regular Session

House Bill No__ 2327

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;

Itis 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 focused 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 ineome 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 established 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 (Php 10.00) 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's is utilized for the contribution of a productivity-based cash
bonus to the laborers, while 20"s is allotted for socio-economic related projects, specifically:
* 9% for socio-economic projects;
© 5% for death benefit program;
© 3% for maternity 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 mettic system from
picul to LKG, Which is an internationally-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’ provides 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 fraught with 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.
LU oe


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

Sixteenth Congress
First Regular Session

2827

House Bill No.

Introduced by Honorable Lucy Marie Torres-Gomez

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

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 ten (10)
Members composed of the Secretary of Labor and Employment or his duly authorized
repsentative as ex officio chairman; one (1) representative from the Sugar Regulatory
Administration, who shall likewise sit in an ex officio capacity; two representatives from
the planters’ sector; two (2) representatives from the millers sectors ; two (2)
representative 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 among the nominees of the planters, millers
and workers organizations, respectively.”

Proposed amendment :


Sec. 3. COMPOSITION, THE SUGAR TRIPARTITE COUNCIL SHALL BE
COMPOSED OF TWELVE (12) MEMBERS COMPOSED OF THE SECRETARYOF
LABOR AND EMPLOYMENT OR HIS DULY AUTHORIZED REPRESENTATIVE
AS EX OFICIO CHAIRMAN; ONE (1) REPRESENTATIVE FROM THE SUGAR
REGULATORY ADMINISTRATION, WHO SHALL LIKEWISE SIT IN AN EX
OFICIO CAPACITY; FOUR (4) REPRESENTATIVES FROM THE PLANTERS
SECTOR;TWO (2) REPRESENTATIVE FROM THE MILLERS’ SECTORS; TWO (2)
REPRESENTATIVE FROM THE MILLERS WORKERS’ SECTORS; AND TWO (2)
REPRESENTATIVES FROM THE FIELD WORKERS’ SECTORS, AS MEMBERS.

THE REPRESENTATIVES FROM THE PLANTERS’ SECTORS SHALL BE CHOS:
FROM LIST NOMINEES SUBMITTED BY THE TOP FOUR (40) PLANTERS?
FEDERATION;

THE REPRESENTATIVES FROM THE MILLERS’ SECTOR SHALL BE
FROM A LIST OF NOMINEES SUBMITTED BY THE TOP TWO MILLERS
FEDERATIONS,

THE REPRESENTATIVE FROM THE MILL WORKERS AND FIEL!
SECTOR SHALL COME FROM A LEGITIMATE LABOR ORGANIZ.
UNIO OF SUCH MILL OR FIELD WORKE

TION OR

SECTION 2. Section 6 of the Republic Act No. 6982 is hereby amended to read as follows :

District ‘Tripartite Councils — (a) Whenever necessary the Secretary of Labor and
mployment 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 the 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 as the ex-officio Chairman;
two (2) representative from the planters’ sector; one (1) representative from millers’
sectors as member, THE REPRESENTATIVE FROM THE MILL SECTOR SHALL
COME FROM A LEGITIMATE LABOR ORGANIZATIO 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.

SECTION 3. Section 7 of the Republic Act Numbered 6982 is hereby amended to read as
follows

“Sec. 7. ; Distribution; Collection and Remittances —

(a) __ Effective on sugar crop year 1991-1992 alien of Five Pesos (P5.00) per picul of
sugar shall be imposed on the gross production of sugar to primary augment the income of
sugar workers, and to finance social and economic program to improve their livelihood



and well-being; Provided, that the Secretary Of Labor and Employment may, upon
recommendation by the Sugar Tripartite Council, allow the increase Provided That 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 : 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.

Proposed amendment :
a) EFFECTIVE ON SUGAR CROP YEAR 2011-2012, A LI OF TEN PESOS.
(PHP 10.00) PER LKG, 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 NOMIC
PROGRAMS TO IMPROVE THEIR LIVELIHOOD AND WELL-BEING : PROVID
THAT THE SECRETARY OF LABOR AND EMPLOYMENT MAY, UPON THE
RECOMMENDATION BY THE SUGAR TRIPARTITE COUNCIL, ALLOW THE
INCREASE of NOT MORE THAN ONE PESO (Php 1.00) EVERY TWO (2) YEARS.
JOD OF TEN (10) YEARS FROM THE EFFECTIVITY OF THIS ACT,
5 RATION THE CIRCUMSYANCES ADVERSELY
! OF PRODUCING SUGAR AND THE DECLARATION OF

POLICY IN 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.

SECTION 4. Section 9 of the Republic Act No. 6982 is hereby amended to read as follows:

“Sec. 9.  Undistributed Cash Bonus. Any undistributed amount due to the workers
shall, within three (3) months, be remitted to and 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 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
tadio 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
concerned beneficiaries reside.

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.


Proposed amendments:

ANY UNDISTRIBUTED AMOUNT DUE TO THE WORKERS SHALL BE WITHIN
THREE (3) MONTHS, BE REMITTED TO AND PLACED IN A SPECIAL FUND TO
BE ADMINISTERED BY THE STC FOR A PERIOD OF ONE (1) YEAR FROM THE
DATE OF REMITTANCE, AFTER WHICH IT SHALL FORFEITED BE ADDED AND
TRANSFERRED TO DTC CONCERNED.

THE DTC SHALL ALLOT FIFTY PERCENT (50%) OF THE SAID FUND TO
FINANCE EDUCATIONAL PROGRAMS AND THEIR DEPENDENTS BY DULY
ACCREDTED 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.

SECTION 5. Section 10 of the Republic Act Numbered 6982 is hereby amended to read
as follows:

“See.10, Socioeconomic plans and Programs; Operation Councils. - On
recommendation of the Sugar Tripartite Council, the Secretary of Labor and
Employment shall use twenty percent (20%) programs, and any and all incomes or
interest thereon, for the following :

(a) Xxx
(b) Nine Percent (9%) for socioeconomic projects for the sugar workers undertaken
by the Bureau of Rural Workers, planters/millers organization, workers organizations,
and/or the Sugar Industry Foundation, Inc.

Proposed amendment:

(b) TEN PERC! (10%) FOR THE SOCIOECONOMIC PROJECTS WHICH
SHALL INCLUDE, AMONG OTHERS, HEALTH, MEDICAL AND EDUCATIONAL
BENEFITS FOR TGE SUGAR WORKERS UNDERTAKEN BY THE BUREAU OF
RURAL WORKERS, PLANTERS/MILLERS ORGANIZATIONS, WORKERS
ORGANIZATIONS AND OTHERS FOUNDATIONS OF SUGAR
PLANTERS/MILLERS: Provided, THAT EDUCATION BENEFITS SHALL NOT
BE LIMITED TO FORMAL EDUCATION BUT ALSO TECHNICAL SKILLS
TRAINING AT TRAINING CENT § DULY ACCRDITED BY THE TESDA.

(©) Three percent (3%) for maternity benefits for the women sugars in addition to
existing benefits granted by law or collective bargaining agreements: Provided, however,
‘That the maternity benefits provided therein shall be paid only for the first four deliveries.

Proposed amendments
TWO AND HALF (2 4%) PERCENT FOT THE WOMEN SUGAR WORKERS IN

ADDITION TO EXISTING COLLECTIVE BARGAINING AGREEMENTS:


PROVIDED , THAT A WOMAN SUGAR WORKER WHO DELIVERS A CHILD OR
UNDERGOES THERAPEUTIC ABORTION SHALL BE ENTITLED TO A
MATERNITY BENEFIT FOR EVERY SUCH DEL;IVERY OR THERAPEUTIC
ABORTION; PROVIDED , FURTHER , THAT WOMEN SUGAR WORKERS WHO.
ARE UNEMPLOYED OR ON EAVE 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 EMPLOYE:
ALTHOUGH THEY MAY RECEIVE MATENITY BENEFITS OR SIMILAR

7 rIVE EMPLOYERS, SHALL NOT BE ENTITLED
i MATERENITY PROVIDED HEREIN.

FARM CULTIVATORS SHALL BE ENTITLED T TO THE MATERN
ITY BENEFITS HEREIN PROVIDED.

(d)Thee Percent (32%) 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.

Proposed amendment:

TWO AND A HALF PERCENT (2.5%) FOR ADMINISTRATIVE EXPENS!
THE SUGAR TRIPARTITE COUNCILS AND THE BUREAU OF WORKERS WITH.
SPECIAL CONCERNS OF THE DEPARTMENT OF LABOR AND EMPLOYMENT.
IN IMPLEMENTING THIS ACT.

Section 6. There shall be added a Section 10A which shall read as follows :


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

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

THE BUREAU SHALL PROVIDE THE SWMB RESERVE FUND TO COVERED
REGIONAL OFFICES AND SUBSEQUENT RELEASE OF SAID FUND TO THE
REGIONAL OFFICES SRHALL BE EF DD THROUGH FUND
REPLENISHMENT.

ENT, — A CLAIM FOR
D

b. CONDITION AND REQUIRE IENTS FOR ENTITLE!
MATERNITY BENEFITS SHALL BE FILED WITH THE REGIONAL OR FIE
OFFICE HAVING JURISDICTION OVER THE WORKPLACE OF RESIDE
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 GHER DELIVERY OR
THERAPEUTIC ABORTION, OTHERWISE THE CLAIM SHALL BE BARRED.

b) | DOCUMENTATION AND REPORTING. IN ADDITION TO THE

REQUIRED FINANCIAL REPORTS FOR LIQUIDATION OF CASH ADVANCES.
ON THE SWMBEF, THE REGIONAL OFFICE SHALL SUBMIT THE STATUS OF
THE IMPLEMENTATION OF THE PROGRAM ON A MONTHLY BAS



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.

SECTION 7. There shall be added a section 10b, which shall be read as follows:

SEC. 10B. SUGAR WORKERS’ DEATH BENEFIT PROGRAM.

RE SHALL BE 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
THEREOF SHALL BE HELD IN A SPECIAL TRUST ACCOUNT IN AN
AUTHORIZED GO" NMENT DEPOSITARY BANK.

THE BUREAU SHALL PROVIDE THE SWDBF RESERVE FUND TO COVERED
REGIONAL OFFICES AND SUBSEQUENT RI ID FUND TO THE
IONAL OFFICES SHALL BE El 1D THROUGH FUND
REPLENISHMENT,

b. CONDITIONS AND REQUIREMENTS FOR ENTITLEMENT. ~ A DEATH BENEFIT
CLAIM SHALL BE FILED WITH REGIONAL OFFICE OR IN ITS PROVINCIAL
OFFICE HAVING JURISDICTION OVER THE WORKPLACE OR RESIDENCE
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.

RED AND.
IC FUND OF THE

ANY UNUSED PORTION OF THE SWDBF SHALL BE TRANS
ADDED TO THE 10% SOCIO-ECONOMIC FUND OF THE SPECI
SPECIFIC MILL DISTRICT F OR THE FOLLOWING CROP YEAR,

SECTION 8. There shall be added a Section 10C, which shall read, as follows:
SECTION 10C. SPECIAL EDUCATION FUND (SEF) .

ECIAL 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.

3RNED

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

b, 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.

SECTION 9. There shall be added a Section 10D, which shall read , as follows

SECTION 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,

SECTION 10. The Secretary if Labor and Employment shall implement the sharing as

provided herein and, upon consultation with the Sugar Tripartite Council, promulgate such rule:

and regulations as may be necessary to carry out the provisions of this Act.

SECTION 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

aly.

amended accor

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

comes earlier.