Profit Distribution Scheme between NASUTRA and Sugar Producers

May 1, 1980

LETTER OF INSTRUCTIONS NO. 1016

In order to provide immediate relief to the workers in the Sugar Industry, you are hereby directed to implement the following Instructions: casia

1. The difference between the average selling price and the break-even cost of NASUTRA on export sugar shall be divided equally between NASUTRA and the producers. However, this profit distribution scheme shall operate only when the average selling price is higher than the break-even cost of NASUTRA. This scheme may be changed by the government as circumstances may warrant.

2. The President of the Philippines National Bank is hereby directed to apply 30% of the proceeds due the producers based on item no. 1 above to their accounts with the bank and to release to the producers the balance of 70%.

3. The mills shall pay a daily minimum wage of P13.00 effective March 16, 1980, and P14.00 when the composite price paid to the producers reaches P110.00 per picul. On the basis of the same composite price of P110.00 per picul paid to the producers, the mills shall likewise comply with PD No. 1616. Effective February 21, 1980, the mills shall comply with P.D. No. 1678 in addition to PD's 525 and 1123.

4. Planters shall pay a daily effective wage of P10.00 effective March 16, 1980, and on this basis, planters are deemed to have complied with PD's 525 and 1678. When the composite price paid to the producers reaches P110.00 per picul, the daily effective wage shall be increased to P11.50, and on this basis, planters are deemed to have complied with PD's 525, 1678 and 1123.

5. The pakiao rates in the agricultural sector as prescribed by the National Tripartite Conference in the Sugar Industry in July 1973 are hereby upgraded by 30% inclusive of PD's 525 and 1678, effective March 16, 1980, and another 10% effective when the composite price paid to the producers reaches P110.00 per picul.

6. The stabilization fee consisting of the Social Amelioration Fund, Special Project Fund of the Ministry of Labor and the Sugar Industry Foundation Fund pursuant to PD's 621, 788 and 1365 shall be exempted from the effects of Section 3.10 of LOI 981 but shall be considered as Special Accounts in the General Fund. Releases of the Special Project Fund shall be made only with the approval by the President of individual projects charged to the fund.

7. In accordance with LOI 829, when the composite price of sugar paid to the producers reaches P130.00 per picul, you shall require the mills to comply with PD 1634 plus P10.00 additional allowance a month and the planters with PD's 1614 and 1634. On the basis of the same composite price level, the pakiao rates in the agricultural sector shall be increased by 20%. cdt

8. This is without prejudice to employer voluntarily complying earlier with the above benefits either unilaterally or as a result of collective bargaining.

9. All millers and planters shall report compliance with these Instructions to the nearest regional office of the Ministry of Labor.

10. You are hereby directed to issue the appropriate rules for the effective implementation of these Instructions. acd

11. All laws, decrees, Instructions and other issuance inconsistent with these Instructions are hereby modified or amended accordingly.

DONE in the City of Manila, this 1st day of May, in the year of Our Lord, Nineteen Hundred and Eighty. cd i