Advisory on the Implementation of Productivity-Based Incentive Scheme for the Sugar Industry in Region VI

February 21, 2014RTWPB VI PBP ADVISORY NO. 01-14ADVISORY ON THE IMPLEMENTATION OF PRODUCTIVITY-BASED INCENTIVE SCHEME FOR THE SUGAR INDUSTRY IN REGION VIBackground/RationaleThe sugarcane industry contribution to the Philippine economy from incomes from raw sugar, VAT, molasses and bioethanol amounted to PHP76B annually. Direct employment was estimated at about 600,000, and 90% of farms are 10 hectares and below in area with a total of 422,384 hectares of sugarcane plantations. (Sugar Regulatory Administration) HTcADCWestern Visayas accounts for more than half of the total sugar industry output. Eleven sugar mills, five refineries, and two bioethanol plants are located in the Region. Employment is composed of sugarcane farm workers, small planters/workers, Agrarian Reform Beneficiaries (ARBs), and sugar mill workers. Incomes of these workers come from wages and other forms of incentives. The welfare benefits of sugar industry workers are covered by the Sugar Amelioration Program and other statutory benefits.At present, two wage mechanisms cover the wages of sugar industry workers. First, is the Wage Order issued by the Regional Board, that sets the minimum wage of sugar industry...