Establishing Labor-Based Units in the Infrastructure Agencies of the Government and For Other Purposes

Case Overview and Summary

EXECUTIVE ORDER NO. 336

Summary:

Establishment of Labor-Based Units (LBUs):
- The Department of Public Works and Highways (DPWH), the Department of Local Government (DLG), the Department of Transportation and Communications (DOTC), and the National Irrigation Administration (NIA) are directed to establish labor-based units (LBUs) within six (6) months from the date of this Order. (Sec. 1)
- The LBUs shall be established at the policy (central) and operational (regional/field) levels, manned by experienced staff trained in labor-based methods. (Sec. 1.1.1)
- The head of the LBUs at both policy and operational levels shall be at least a third ranking career official of the agency, assisted by a competent staff of well-trained, experienced personnel. (Sec. 1.1.2)
- The sizes of the LBUs at different levels shall be determined by the respective department/agency heads within thirty (30) days, and the LBUs shall be installed, manned and made fully operational after six (6) months from the date of this Order. (Sec. 1.1.3)
- The establishment of the LBUs should not result in an increase in personnel services or maintenance expenses; personnel shall be drawn from existing units through screening, selection, and training. (Sec. 1.1.4)
- The DPWH, DLG, DOTC, and NIA shall make the necessary realignment of their operating budgets, if needed, to formalize the establishment of the LBUs, in coordination with the Department of Budget and Management (DBM). (Sec. 1.1.5)

Agency Programs:
- The DPWH, DLG, DOTC, and NIA shall include provisions for the nationwide use of labor-based methods, particularly small, rural-based projects, and allocate specific sums for these projects in their annual programs starting CY 1989. (Sec. 2.1)
- For 1988, these agencies shall identify suitable labor-based methods of construction or maintenance. (Sec. 2.2)
- The heads of these agencies shall issue appropriate guidelines for the programming of labor-based projects, jointly or individually as warranted. (Sec. 2.3)

Encouragement of the Private Sector:
- The DPWH, DLG, DOTC, and NIA, coordinated by the National Economic and Development Authority (NEDA), shall review existing systems and procedures for licensing, bidding, bid evaluation, contract award, and related aspects to determine their applicability to labor-based methods and formulate improved and/or new systems and procedures to provide incentives for small contractors to participate in labor-based programs. (Sec. 3.1)
- Within six (6) months after the establishment of the LBUs, these agencies shall start the implementation by contract of at least one (1) project in each of the regions covered under their respective programs, using labor-based methods to demonstrate the feasibility and profitability of undertaking labor-based projects through contract. (Sec. 3.2)
- The DPWH, DOTC, and NIA shall assist small contractors in organizing labor-based operations and in the training of their personnel. (Sec. 3.3)

Assistance from Other Agencies:
- The DBM shall facilitate the release of funds intended for labor-based projects and/or programs within the approved agency allocations. (Sec. 4.1)
- The NEDA, as well as the Regional Development Councils, shall assist in the monitoring and promotion of labor-based programs and projects nationwide. (Sec. 4.2)
- The Department of Labor and Employment shall assist in the recruitment and training of laborers for employment in labor-based projects. (Sec. 4.3)
- All other government agencies and instrumentalities shall provide the necessary support and assistance required for the implementation of this Order. (Sec. 4.4)

Repealing Clause and Effectivity:
- All orders, rules, and regulations inconsistent with this Order are hereby repealed and/or modified accordingly. (Sec. 5)
- This Executive Order shall take effect immediately. (Sec. 6)