Republic of the philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS

House Bill No. 0722

Introduced by Rep. LUCY MARIE TORRES-GOMEZ

EXPLANATORY NOTE

State policy dictates the need to strengthen che
rights of the workers in the sugar industry to their qust
share in the fruits of production by augmenting their
income and, among others schemes, institutionalizing the
mechanism among the partners in the sugar industry to
enable the workers and their families to enjoy a decent
livin

It is therefore high ie to revisit the existiag
policies, plans and programs that cover this ailing area of
our agricultural industry with the aim to balance che
interests of the various stakeholders.

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

In this regard, there is a need to amend certain
provisions of Republic Act No. 6982, ox the Soc-al
Amelioration Law which institutionalizes the social
amelioration program in the Philippines through the
provision of workers’ benefits, and established the
tripartite mechanisms for the participation of the
planters, millers and workers in the management of rae
Social Amelioration Fund.

Under Republic Act No. 6982, the implementation of tae
program is financed through the collection of Ten Pesos
(Php10.00) for avery picul of sugar which, under =he
Implementing Rules and Regulations formulated by tae
Secretary of Labor, was converted te Seven Pesos and Ninety
Centavos (Php7.90513; for every LXG bag of sugar produced
by each sugarcane planter



of the amounts coilected, §0¥ is utilized for che
distribution of a productivity-based cash bonus to che
laborers, while 20% is allotved for socio-economic related
projects, specificalty:
* 9% for socic-economic projects;
* 5% for death benefit program:
» 3% for maternity benefit program;
» 3% for administrative expenses of the Sugar Tripaztite
Council(STC}, District Tripartite Council (DTC) and the
Bureau of Workers with Special Concerns (BWSC) .

There is thus the need for the law to be amended to
make it more dynamic and adaptive to the changing times.
Hence, a simple conversion into the metric system fron
picul to LKG, which is an internationally-accepted unit of
measurement, while aintaining the Pl0-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 stiti
fraught with poor health and are unable to send most
children to schools.

Definitely, a realignment of the foregoing allotted
percentages wili not debilitate the other areas of coverage
of this fund.

In the light of the foregoing, there is an imperative
need to amend certain provisions of RA 6982.


PROGRAM IN THE SUGAR INDUSTRY, AMENDING FOR THIS PURPOSE

AN ACT FURTHER STRENGTHENING THE SOCIAL AMELIORATION

CERTAIN PROVISIONS OF REPUBLIC ACT NUMBERED 6982 ENTITLED,

Be

Representatives of the Philippines in Congress assembled.

THE SOGAR INDUSTRY, PROVIDING THE MECHANINCS
POR ITS IMPLEMENTATION, AND FOR OTHER FURPOSES”

it enacted by the Senate and the House

“AN ACT STRENGTHENING THE SOCIAL AMELIORATION PROGRAM IN

of

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 representative 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 trom the millers sector; two
(2) representatives from che mill workers sector;
and two (2) representatives from the FIELD
workers sector, as members.

The representatives from the plantera, 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 amendme!
Sec. 3, COMPOSITION. THE SUGAR TRIPARTITE COUNCIL
SHALL BE COMPOSED OF TWELVE (12) MEMBERS COMPOSED
OF THE SECRETARY OF 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 CAPACITY; FOUR (4)
REPRESENTATIVES RCM THE PLANTERS SECTOR TWO (2)
REPRESENTATIVES FROM THE MILLERS’ SECTOR; TWO (2)
REPRESENTATIVES FROM MILL WORKERS’ SECTOR;
AND TWO  (2)REPRESENTATIVES FROM THE FIELD
WORKERS’ SECTOR, AS MEMBERS.

THE REPRESENTATIVES FROM THE PLANTERS’ SECTOR
SHALL BE CHOSEN FROM A LIST NOMINEES SUBMITTED BY
THE TOP FOUR (4) PLANTERS’ FEDERATIONS;


THE REPRESENTATIVES FROM THE MILLERS’ SECTOR
SHALL BE SELECTED FROM A LIST OF NOMINEES
SUBMITTED BY THE TCP TWC MILLERS FEDERATIONS

THE REPRESENTATIVES FROM THE MILL WORKERS AND
FIELD WORKERS SECTOR SHALL COME PROM A LEGITIMATE
LABOR ORGANIZATION OR UNICN OF SUCH MILL OR FIELD
WORKERS.

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

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 cf she 20LE as ex officio
Chairman; two i2, representatives from the
planters sector; one representative from the
millers sector; two (2) representatives from the
field workers sector; and one (1) representative
from the mill worker, sector, as member, THE
REPRESENTATIVES FROM THE MILL WORKERS AND FIELD
WORKERS SECTOR SKALL 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.

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

“Sec. 7. Lier; Ozstribution; Collection and
Remintances

(a) Effect:ve on sugar crop year 1991-1992
alien of Five Peses (P5.00) per picul of sugar
shall be imposed on the gross production of sugar



to primarily augment the income of sugar workers,
and to finance sociai and economic programs to
Amprove their livelinood and well-being:
Provided, that the Secretary of Labor and
Employment may, upon recommendation by the Sugar
Tripartite Counci., allow the increase Provided,
That there shail be an automatic additional lien
of One peso (P1.02° for every two {2) years for
the succeeding ten iif) 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 increases in the cost of
producing sugar, taking into consideration the
declared policy of this Act.

Proposed amendment:
a) EPFECTIVE ON SUGAR CROP YEAR 2011-2012, A LIEN
OF TEN PESOS (PHP10.00} PER LKG, OR FIETY-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 LIVELTHOOD
AND WELL-BEING: PRCVIDED, THAT THE SECRETARY OF
LABOR AND EMPLOYMENT MAY, UPON RECOMMENDATION BY
THE SUGAR TRIPARTITE COUNCIL, ALLOW THE INCREASE
of NOT MORE ONE PESO {Phpl.00) EVERY TWO (2)
YEARS FOR A PERIOO OF TEN (10) YEARS FROM THE
EFFECTIVITY OF TRIS ACT, TAKING INTO
CONSIDERATION THE — CIRCUMSTANCES — ADVERSELY
APFECTING THE COST OF PRODUCING SUGAR AND THE
DECLARATION OF POLICY IN TRIS ACT.

The amounts 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 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 programs 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 unciaimed cash bonus. The said
publications shall be made through local
newspapers and ky 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 Tripartize Council.

Proposed amendment:
ANY UNDISTRIBUTED AMOUNT DUE TO THE WORKERS
SHALL, WITHIN TAREE (3) MONTHS, BE REMITTED TO
AND PLACED IN A SPECIAL FUND TO BE ADMINSLTERED
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 OTC SHALL ALLGT FIFTY PERCENT (50%) OF THE
SAID FUND TO FINANCE EDUCATIONAL PROGRAMS AND
SKILLS TRAINING SUGAR WORKERS AND —‘THETR
DEPENDENTS BY DULY ACCREDITED TRAINING CENTERS BY
THE TECHNICAL EDUCATION SKILLS AND DEVELOPMENT
AUTHORITY (TESDA}. THE OTHER FIPTY PERCENT (50%)
OF THE SAID FUND SHALL BE ALLOTSD TO FINANCE THE
VARTOUS PROJECTS OF THE DTC CONCERNED.

SECTION 5. Section 26 cf Republic Act Numbered 6982 is
hereby amended to read as follows:

“Sec. 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%)
share herein allocated for socio-economic
programs, and any and all incomes or interest
thereon, for the following:

(a) XXX


(b)

(oy

fe)

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

Proposed amendment:

TEN PERCENT (10%! FOR SOCIOECONOMIC PROJECTS
WHICH SHALL INCLUDE, AMONG OTHERS, HEALTH,
MEDICAL AND SOUCATIONAL BENEFITS FOR THE
SUGAR WORKERS UNDERTAKEN BY THE BUREAU OF
RURAL WORKE! PLANTERS/ MILLERS
ORGANIZATIONS, WORKERS ORGANIZATIONS AND
OTKER FOUNDATIONS OF SUGAR
PLANTERS /MILLERS ; PROVIDED, THAT
EDUCATIONAL BENEFITS SHALL NOT BE LIMITED
TO FORMAL ECUCATION BUT ALSO TO TECHNICAL
SKILLS TRAINING AT TRAINING CENTERS DULY
ACCREDITED BY THE TESDA

Three percent {3%} for maternity benefits
for the women sugar workers in addition to
existing benefits granted by law or
collective bargaining agreements: Provided,
however, That maternity benefits provided
herein shall be paid only for the first
four deliveries.

Proposed amendment

TWO AND A HALF PERCENT (2.5%) FOR THE WOMEN
SUGAR WORKERS IN ADDTION TO EXISTING
BENEFITS GRANTED BY LAW OR COLLECTIVE
BARGAINING AGREEMENTS: PROVIDED, THAT A
WOMAN SUGAR WORKER WHO DELIVERS A CHILD OR
UNDERGOES THERAPEUTIC ABORTION SHALL BE
ENTITLEO 7G A MATERNITY BENEFIT FOR EVERY
SUCH CELLVERY OR THERAPEUTIC ABORTION;
PROVIDED, THER, THAT MATERNITY BENEFITS
PROVIDED HEREIN SHALL BE PAID ONLY FOR THE
FIRST THREE (3) DELIVERIES OR THERAPEUTTC
ABORTIONS; 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
EMPLOYEES, ALTHOUGH THEY MAY RECEIVE
MATERNITY BENEFITS OR SIMILAR BENEFITS FROM
THEIR RESPECTIVE EMPLOYERS, SHALL NOT BE
ENTITLED TO THE MATERNITY BENEFITS PROVIDED
HEREIN.

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

(a) Three Percent {38} for 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 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.

SECTION 6. There shall be added a Section LOA which shall
read as follows:

SEC. 1A, THE SUGAR WORKERS’ MATERNITY BENEFIT FUND.

a) PURSUANT TO PARAGRAPH (C) OF THE IMMEOIATELY
PRECEDING SECT= RE SHALL BE A SUGAR WORKERS‘
MATERNITY BENEFIT FUND (SWMB) TO BE ADMINISTERED ANC
MANAGED BY THE 00: THROUGH THE BUREAU OF WORKERS
WITH SPECIAL CON AND ALL INCOMES AND INTERESTS.
THEREOF SHALL BE HED IN A SPECIAL TRUST ACCOUNT =N AN
AUTHORIZED GOVERNMENT DEFCSITARY BANK.

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


shall read as follow:

b. CONDITION ANG REQUIREMENTS FOR ENTITLEMENT. - A
CLAIM ¥OR MATERNITY BENEFIT SHALL BE FILED WITH THS,
REGIONAL OR FIEL: HAVING JURISDICTION OVER THE
WORKPLACE OF RESIDENCE OF THE COVERED WOMAN WORKER,
UPON RECOMMENDATION BY THE ACCREDITED PLANTERS’
ASSOCIATION/COOPERATIVES AND MILL THROUGH THEIR
RESPECTIVE AUTHORTZEO REPRESENTATIVE/S, WITHIN THREE
(3) YEARS COUNTED PROM THE DATE OF HER DELIVERY OR
THERAPEUTIC ABORTION, OTHERWISE THE CLAIM SHAL: BE
BARRED.

b) DOCUMENTATION AND REPORTING. IN ADDITION TO THE
REQURIED FINANCIAL REPCRTS 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
SPECIPIC MILL DISTRICT FOR THE FOLLOWING CROP YEAR.

SECTION 7, There shal! be added a section 10b, which

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 SPRCTAL 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 SWDBF RESERVE FUND TO
COVERED REGIONAL OFFICES AND SUBSEQUENT RELEASE OF
SAID FUND TO THE REGIONAL OFFICES SHALL BE BPFECTED
THROUGH FUND REPLENISHMENT.

. CONDITIONS AND REQUIREMENTS FOR ENTITLEMENT. - A DEATH

BENEFIT CLAIM SHALL BE FILED WITH THE REGIONAL OFFICE
OR IN 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’ ASSOCIATTON/COOPERATIVES
AND MILL THROUGH THEIR RESPECTIVE ACCREDITED
REPRESENTATIVES, WITHIN THREE (3) YEARS COUNTED FROM
THE DATE OF DEATH OF SUCH COVERED WORKERS, OTHERWISE
THE GLAIM SHALL 32 BARRED; PROVIDED, Tr
APPLICATION SHALL BE ScPPORTED BY AN AFFIDAVIT
EXECUTED BY THE CLAIMANT ATTESTING TO THE RELATIONSHIP
WITH THE DECEASED COVERED WORKER OR SMALL FARM



shall

shall

CULTIVATOR, AND THE FACT THAT THE CLAIMANT IS THE
BENEFICIARY TO THE EXCLUSION OF THE OTHERS.
DOCUMENTATION ANC ORTING. IN ADDITION TO THE
REQURIED FINANCIAL REPORTS FOR LIQUIDATION OF CASH
ADVANCES ON THE SWOBF, THE REGIONAL OFFICE SHALL
SUBMIT THE STATUS OF THE IMPLEMENTATION OF THE PROGRAM
ON A MONTHLY BASLS.

ANY UNUSEC PORTION OF THE SWOBF SHALL BE TRANSFERRED
AND ADDED TO THE 19% SOCIO-ECONOMIC FUND OF THE
SPECIFIC MILL DISTRICT FOR THE FOLLOWING CROP YEAR.

SRCTION @, There shall be added a Section 10¢, which
read, as follows:

SECTION LOC. SPECIAL EDUCATION FUND (SEF).

THERE SHALL BE A SPECIAL EDUCATION FUND 10 BE
ADMINISTERED ANC MANAGED BY THE DOLE, THRCUGH 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.

TRE 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 REPLENISMENT .

CONDITIONS AND REQUIREMENTS FOR ENTITLEMENT - THE DTC
SHALL RELEASE THE SAiD FUND TO TESDA~ACCREDITED
TRAINING CENTERS GPON SUBMISSIN OF PROOF OF QUALIFIED
BENEFICIARIES FROM LEGITIMATE SUGAR WORKERS AND THEIR
BENEFICIARIES. THE DTC MAY ALSG AWARD SCHOLARSHIPS TO
SUGAR WORKERS ANC THEIR DEPENDENTS FOR PRIMARY,
SECONDARY AND TERTIARY EDUCATION IN GOVERNMENT
EDUCATIONAL INSTITUTIONS SUBJECT 0 SUCH FURTHER
QUALIFICATIONS AS MAY BE DETERMINED BY THE SECRETARY
UPON RECOMMENDATION BY THE STC.

SECTION 9. There shall be added a Section 100, which
read, as follows:

SECTION 10D, ANNUAL OPERATIONAL BUGET PREPARATION. THE
BUREAU OF WORKERS WITH SPECIAL CONCERNS SHALL PREPARE
AN ANNUAL OPERATIONAL BUDGET RELATIVE TO THE
IMPLEMENTATION CE THIS ACT FOR APPROVAL BY THE
SECRETARY UPON THE MMENDATION OF THE STC ANC THI
DTC CONCERNED,



SECTION 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 te carry cut
the provisions of this Act.

SECTION 11. All laws, decrees, executive orders and
rules and regulations oz part or parts thereof inconsi:
with any provision this Act are hereby repealed, modified,
superseded or amended accordingly.

SECTION 12. This Act shail take effect fifteen (15;
days after its complete publication in the Official Gazette
or in at least two (2; national newspapers of general
circulation, whichever comes earlier.