AN ACT STRENGTHENING THE SOCIAL AMELIORATION PROGRAM IN THE SUGAR INDUSTRY

Case Overview and Summary

Summary of Republic Act No. 6982

Policy and Purpose (Section 1):
- Strengthen the rights of sugar industry workers to their just share in production by augmenting their income and institutionalizing a mechanism among industry partners to enable workers and their families to enjoy a decent living.
- Consider living wages, workers' needs, standards of living, seasonal nature of work, productivity incentives, consumer interests, industry viability, fair return on capital, and equitable income distribution.

National Tripartite Council in the Sugar Industry (Sections 2-6):
- Creation of the Sugar Tripartite Council as an advisory body to the Department of Labor and Employment (DOLE) for social and economic programs.
- Composition: 10 members including DOLE Secretary (ex officio chairman), Sugar Regulation Administration representative, 2 millers' representatives, 2 mill workers' representatives, and 2 workers' representatives.
- Term of representatives: 3 years, unless recalled by nominating organization.
- Regular meetings every 3 months, with provisions for special meetings and reimbursement of expenses.
- Creation of District Tripartite Councils in each milling district, with 7 members representing DOLE, planters, millers, field workers, and mill workers.

Lien, Distribution, Collection, and Remittance (Section 7):
- Lien of P5.00 per picul of sugar imposed on gross production, effective sugar crop year 1991-1992, with automatic additional P1.00 lien every 2 years for 10 years, subject to suspension or reduction by DOLE Secretary upon recommendation of the Sugar Tripartite Council.
- 80% of the lien, including interests, to be distributed as cash bonus to workers based on work rendered, collected by sugar mills and released to planters' associations or directly to unaffiliated planters for distribution.
- 20% of the lien to be remitted to DOLE for utilization in socioeconomic programs.
- Collection upon withdrawal or release of sugar from mill warehouse, but not beyond 180 days from issuance of quedans or warehouse receipts.
- Duty of sugar mills to remit collected lien within 1 month, with 10% monthly penalty for non-remittance.
- Duty to distribute cash bonus to workers within 1 month, with 10% monthly penalty for non-distribution.

Prohibition Against Deduction and Undisputed Cash Bonus (Sections 8-9):
- No deduction from the lien is allowed, directly or indirectly. (Section 8)
- Undistributed cash bonus amounts to be remitted to DOLE and held in trust for 3 years, after which they are forfeited in favor of socioeconomic programs for sugar workers, with provisions for publication and radio announcements to inform beneficiaries. (Section 9)

Socioeconomic Plans and Programs; Operation of Councils (Section 10):
- 20% share of the lien and interests to be used for:
- 5% for sugar workers' death benefit program
- 9% for socioeconomic projects for sugar workers by Bureau of Rural Workers, planters/millers organizations, workers organizations, and/or Sugar Industry Foundation, Inc.
- 3% for maternity benefits for women sugar workers, limited to first 4 deliveries
- 3% for administrative expenses of the Sugar Tripartite Council, District Tripartite Councils, and Bureau of Rural Workers

Implementing Agency and Substitution of Benefits (Sections 11-12):
- DOLE Secretary to implement the sharing scheme, promulgate rules and regulations, and consult with the Sugar Tripartite Council.
- Bureau of Rural Workers to assist DOLE Secretary in implementation.
- Benefits under this Act substitute liens and production sharing under Republic Act No. 809 and Presidential Decree No. 621, as amended, except for pending cases.

Penal Sanctions and Non-diminution of Benefits (Sections 13-14):
- Intentional violation of Sections 7, 8, 9, 10, and 14, and rules under Section 11, is punishable by imprisonment of 6 months to 1 year, or a fine of P5,000 to P20,000, or both, with penalties imposed on responsible officers of entities. (Section 13)
- Benefits, interests, rights, or participation enjoyed by workers at the time of enactment shall not be reduced, and amounts received under this Act shall not be subject to taxation. (Section 14)

Auditing of Funds, Repealing Clause, Separability Clause, and Effectivity (Sections 15-18):
- Funds remitted to and held in trust by DOLE shall be audited by the Commission on Audit, with disbursements made in accordance with auditing rules and regulations. (Section 15)
- Repealing of inconsistent laws, decrees, executive orders, and rules and regulations. (Section 16)
- Separability clause for unconstitutional provisions. (Section 17)
- Effectivity 15 days after publication in the Official Gazette or at least two national newspapers. (Section 18)