Research Paper on:

Hacienda Luisita

Submitted By:
Escobar, Alvim Jae Calsiyao, Iris Dell Castillo, Andrienne Frianeza, Alyssa Dominique Lee, Annie

Submitted To:
John Bronola

History of Hacienda Luisita Along with Hacienda Antonio, San Fernando and Isabel, Hacienda Luisita , a 6,435 hectare sugar plantation estate , was once part of a private enterprise, the Tabacalera, a Spanish Tobacco Monopoly, established in 1636. During the American Period, Hacienda Luisita, still owned by the Spaniards was not abolished; in fact, it supplied more than 20% of sugar in the United States. Later on, the Americans decided to introduce the centrifugal based machinery to double production. The hacienda still continued its operation during the Japanese era for anti-insurgencies and guerilla reasons. Spanish-Filipino administrators even were in good terms with the Japanese when they placed Japanese journeymen in charge of the centrifugal machinery. On 6 November 2004, twelve picketing farmers and two children were killed and hundreds were injured when police and soldiers dispatched by then Labour Secretary Patricia Santo Toms, stormed a blockade by plantation workers. The protesters were pushing for fairer wages, increased benefits and, more broadly, a greater commitment for national land reform. In 2005, the stock distribution agreement was cancelled by the Department of Agrarian Reform stating the failure to improve the lives of 5000 farmer beneficiaries though later on, Supreme Court a temporary restraining order, stopping the giving out. On November 16, 2004 twelve protesting farmers as well as two children, were killed while hundreds are injured. This happening is called the Hacienda Luisita Massacre. Today, the Cojuancos ownership is being criticized as farmers still fight for their ownership of the land.

 In 2006, a temporary restraining order was issued by the Supreme Court after HLI raised the SDO revocation issue to the tribunal. In 2010, plantation owners offered a compromise deal to the plantation unions, promising a P150-million financial package for the beneficiaries. Farmers lined up in August 2010 to receive their share of the P20-million first tranche of the financial settlement. The balance of the package, HLI said, would be released once the Supreme Court approved the compromise deal. However, in July 2011, the high court upheld the DARs revocation of the SDO and called for a referendum to allow farmers to vote again on whether or not they wanted land ownership or shares of stock.

Issues on Labor Union

Stocks not transferred to farmers The stocks representing the farm workers full 33% share were not transferred to them in 1989, but were spread over a period of 30 years with only one-thirtieth (1/30) released every year. At this rate, it would take until 2019 for the farm-worker beneficiaries to receive their complete set of stocks. While their shares remained undistributed, these were owned and held by the Cojuangco company TADECO (Tarlac Development Corporation).

Thus, the common belief that 33% of Hacienda Luisita has been owned by farm workers since CARP was implemented in 1989 is not entirely accurate, because the full transfer of stocks did not happen in 1989.

Farmers asked to work for free stocks The farm workers also had to continuously render labor to receive shares, because distribution was based on the number of days worked. If a worker quit or if management fired him, he no longer got the undistributed portion of his shares. If management cut work days, distribution of shares was also affected. Complicating things further was a separate provision that set the annual payroll as the basis for deciding who could get shares at the end of each year. As names on the payroll changed every year when workers left or joined the company, the list of shareholders grew longer and longer, diluting the entitlement of the original beneficiaries. In 1989, there were 6,296 farm-worker beneficiaries in Luisita. By 2005, there were 11,955 names on the HLI stockholder list. Not all of the 11,955 remained employed with HLI, or were part of the original 6,296 beneficiaries.

Stock distribution suddenly accelerated After the November 2004 massacre and subsequent investigation by the DAR, HLI announced on June 9, 2005 that it had given out all undistributed stocks in one supreme act of good faith, about 15 years ahead of the 30-year schedule.

It is believed this was done because the 30-year distribution period was a loophole. Way back in 1995, Dr. Jeffrey M. Riedinger, currently Dean of International Studies at Michigan State University, already said the 30-year distribution period seemed without basis in the law in his book Agrarian Reform in the Philippines: Democratic Transitions and Redistributive Reform.

Objective Analysis

1989 Valuation In the November 2011 verdict, 10 Supreme Court magistrates voted to compensate the owners of Hacienda Luisita based on a 1989 valuation. It was on Nov 21, 1989 when an original stock distribution plan was offered to the farmers. In the November 2001 ruling, only one magistrate, Associate Justice Lourdes Sereno, wanted the management to receive compensation which shall be based on their fair market value as of 02 January 2006, to be determined by the Department of Agrarian Reform (DAR). Corona has repeatedly said that it was the SC decision that prompted the President to order his political lieutenants to impeach him. Corona voted for the outright distribution of Hacienda Luisita, saying the stock distribution plan was unconstitutional from the very start.

Problem Analysis

Will Hacienda Luisita farmers finally get their land? After 2 agrarian reform laws and a quarter of a century, 6,000 Hacienda Luisita farmers will finally own their share of the vast sugar plantation. The Department of Agrarian Reform says the agency will start distribution well before the State of the Nation Address of President Benigno Aquino. The 6,000-hectare landholding is owned by the Cojuangco side of the Presidents relatives and has been the subject of a bitter legal dispute. In a historic ruling, the Supreme Court awarded about 4,000 hectares of the hacienda to farmers. But farmers who waited for 25 years can wait no longer. Stakeholder Analysis First of a series President Noynoy Cojuangco Aquino has said he only owns 1% of Hacienda Luisita. Why is he being dragged into the haciendas issues? This is one of the most common questions asked in the 2010 elections. To find the answer, GMANews.TV travelled to Tarlac and spoke to Luisitas farm workers and union leaders. A separate interview and review of court documents was then conducted with the lawyers representing the workers union in court.

GMANews.TV also examined the Cojuangcos court defence and past media and legislative records on the Luisita issue. The investigation yielded illuminating insights into President Noynoy Aquinos involvement in Hacienda Luisita that have not been openly discussed since his presidential bid. Details are gradually explored in this series of special reports.

Remnant of colonialism Before the Cojuangco family acquired Hacienda Luisita in the 1950s, it belonged to the Spanish-owned Compaa General de Tabacos de Filipinas (Tabacalera). Tabacalera acquired the land in 1882 from the Spanish crown, which had a self-appointed claim on the lands as the Philippines colonial master. Luisita was named after Luisa, the wife of the top official of Tabacalera. Tobacco used to be the main crop planted in Luisita, but in the 1920s, the Spaniards shifted to sugar. Sugar production had become more profitable because demand was guaranteed by the US quota. In 1927, the Spaniards built the sugar mill Central Azucarera de Tarlac to accompany their sugarcane plantation.

Ninoy brokers purchase of Luisita The exclusion of Jose Cojuangco, Sr.s brothers and their heirs from Luisita caused the first major rift in the Cojuangco family, Putzel wrote. This played out years later in the political rivalry of Joses son Peping and Eduardos son Danding. Today, this divide is seen between Noynoy Aquino (grandson of Jose Sr., nephew of Peping)

and Gibo Teodoro (grandson of Eduardo Sr., nephew of Danding), who are both running in the 2010 presidential elections.

Government loans given to Cojuangco The Central Bank did this on the condition that Cojuangco would simultaneously purchase the 6,443-hectare Hacienda Luisita, with a view to distributing this hacienda to small farmers in line with the Administrations social justice program." (Central Bank Monetary Board Resolution No. 1240, August 27, 1957). To finance the purchase of Hacienda Luisita, Cojuangco turned to the GSIS (Government Service Insurance System). His application for a P7 million loan said that 4,000 hectares of the hacienda would be made available to bonafide sugar planters, while the balance 2,453 hectares would be distributed to barrio residents who will pay for them on instalment.

References: http://luisitamagsasaka.wordpress.com/ http://realpolitiker.weebly.com/1/post/2013/08/hacienda-luisita-a-history-ofdeception.html#sthash.tcgbKDDH.dpuf http://www.rappler.com/nation/4280-draft-sc-on-hacienda-luisita http://newsinfo.inquirer.net/457631/thousands-lose-out-in-hacienda-luisita-deal