Maintenance of the Viability of the Sugar Industry and Improvement of the Quality of Working Life of Sugar Workers

March 9, 1982

LETTER OF INSTRUCTIONS NO. 1209

WHEREAS, during the National Tripartite Conference in the Sugar Industry held on February 9–11, 1982 at the Philippine Plaza Hotel, labor, management and government agreed to recommend measures that shall maintain the viability of the sugar industry and improve the quality of working life of the sugar workers as well as extend adequate protection and benefits to sugar tenants and rural workers in general; and

WHEREAS, the increase in the domestic price of sugar paid by NASUTRA to the producers is primarily designed to enable the sugar industry to meet its obligations under Ministry Order No. 6 and Wage Order No. 1, and also to enable consideration of the increase in the amount of the stabilization fee or any mutually agreed alternate plan;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby direct as follows:

1. Sugar millers and planters shall pay Wage Order No. 1, Series of 1981, effective the date of the increase in the domestic price of sugar. cd

2. Sugar millers and planters shall fully comply with Ministry Order No. 6, Series of 1980, retroactive to the start of grinding for crop year 1980-81.

3. Payments of the above benefits shall be made on customary pay days pursuant to the provisions of the Labor Code, as amended. However, in the case of differentials earned for CY-1980-81 under Ministry Order No. 6, sugar producers are hereby authorized to enter into agreement with their workers to offset said obligations against cash advances made to the latter or any other alternative repayment schemes as may be authorized by the Minister of Labor and Employment. cd i

4. Upon the reasonable increase in the price of domestic sugar paid to the producers the stabilization fee pursuant to Presidential Decree 621, as amended, shall be increased from P1.10 to P2.00 per picul, which increase shall form part of the Social Amelioration Fund. The Minister of Labor and Employment in consultation with the representatives of labor and management shall devise and formulate appropriate schemes that will govern the use of said increase in the Fund.

5. The Minister of Agrarian Reform shall study the proposal of labor on tenancy relations and submit policy recommendations for safeguarding the interests of tenants and workers in sugar tenanted areas.

6. The Chairman of the Medical Care Commission shall study and submit recommendations on the proposal to increase medicare benefits of agricultural workers by one hundred percent (100%).

7. The Chairman of the Social Security Commission shall study and submit recommendations on the proposal to raise the age limit of covered dependents from 18 to 21 years old, as well as extend full social security benefits to seasonal and pakiao workers. cd i

8. In order to facilitate the extension of adequate services to sugar workers and rural workers in general and in line with the Philippine Government's commitment under ILO Convention 141, the Rural Workers Office in the Ministry of Labor and Employment is hereby classified as a bureau, henceforth to be called BUREAU OF RURAL WORKERS and shall continue to use the Special Project Fund under PD 1365 for the operations and management of its special projects.

9. The seat of MOLE Regional Office in Region VI is hereby transferred from Iloilo City to Bacolod City.

10. The Minister of Labor and Employment shall promulgate the rules and regulations implementing this Instruction.

This Letter of Instruction shall take effect immediately.

DONE in the City of Manila, this 9th day of March, in the year of Our Lord, Nineteen Hundred and Eighty-Two. cd