Unyon ng mga Manggagawa sa Agrikultura [UMA]

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Position Paper of the Unyon ng mga Manggagawa sa Agrikultura (UMA)

on the Congressional Hearing on the Social Amelioration Program
7 May 2014, de Venecia Hall South Wing Annex, House of Representatives.

According to the government, the objective of the Social Amelioration Program (SAP) is to augment the income of
agricultural farm workers (AFWs) and sugar mill workers; implement socio-economic programs and/or projects to
increase income and opportunities of AFWs and their families; uphold their welfare and provide social protection
and opportunities to take part in decision-making on policies for their betterment based on RA No. 6982.
But before going on, what are the conditions of the agricultural and mill workers in the sugar industry?
According to the National Federation of Sugar Workers (NFSW), a member-federation of UMA based in Negros
Island, 95% of agricultural workers are paid the pakyaw rate which means that workers are not paid based on
hours of work, but with a fixed rate based on the wholesale accomplishment of certain tasks. Their net average
weekly pay is only P700 P1,000 or around only Php 140-150 a day.
In Batangas, the net average monthly pay of agricultural workers is P3,000 a month or Php 150 a day or less.
There is also a system of wage based on each ton of sugar cane harvested. For a sacada or migrant worker, the
rate is P120 - P180 per ton while a local worker is paid P180 P200 per ton. Essentially both the pakyaw and per
ton rate are forms of contractualization. Most agricultural workers in the sugar industry are hired on a seasonal
basis, and work for only 6 8 months in a year.
Majority of sugar workers also do not have any work benefits such as social security and health insurance.
Furthermore, majority of those working in sugar mills and even in haciendas have become contract workers
where a wage freeze policy is imposed. Union and rights to form organizations are also trampled upon. Dismal
conditions will further worsen once the tariff for imported sugar goes down to 5% to zero tarriff next year,
2015.
As for the SAP, since its implementation the program has catered to only a few of its target beneficiaries. The SAP
has only become a milking cow for big planters and millers and their partners in government.
1. Most of the funding for SAP do not go to its real beneficiaries. The miller/planter which should be the ones to
distribute the Cash Bonus Fund (CBF) directly to beneficiries as stipulated in the law, actually withhold or deduct
what is due the workers.
As of 2012, P408 million of the (CBF) remain unclaimed and undistributed.This figure was presented in a
consultation between UMA and leaders of agricultural sugar workers (ASWs) from different parts of the country in
February 9-10, 2013.
According to OGYON of Bukidnon, not a single ASW received any CBFs or even maternity and death benefits in
their area. They were even told by one big planter in Quezon town that the SAP is not for them.
Furthermore, the construction of the Sugar Workers Livelihood Center (SWLC) in Malaybalay has not been
completed since 2002. Instead directly benefitting workers, the buildings first floor has been transformed into the
office of the Department of Labor and Employment - Regional Office (DOLE-BDO).

In Negros, according to the National Federation of Sugar Workers (NFSW), workers have already won the
campaign to avail of the SAP since the 1980s. However, the NFSW was not able to avail of a single socio-economic
project of the Socio-Economic Program Related Fund (SEPRF)
The NFSW also reported that in two (2) milling districts under BinalbaganIsabela Sugar Company, Inc. (BISCOM)
and Southern Negros Development Corporation (SONEDCO), there is a 2-year moratorium in the distribution of
the CBF amounting to a total of P254 million. The DOLE RO agreed to this while the NFSW opposed this. The
reason given was that planters were complaining that they were made to pay 2 liens under SAP under RA 809 and
RA 6982.
In Batangas, according to PAMATU, majority of ASWs did not get their CBF because even if they are from the area
they are considered part-time workers.
Labor Secretary Rosalinda Baldoz agreed to this in a dialogue with the UMA on September 11, 2012 when she
mentioned that because of the small amount of the cash bonus there is a problem in its distribution, especially in
areas in Batangas where most of the sugar cane planted is in small farms.
2. Workers have a hard time availing of the Maternity and Death Benefits due to difficulties with requirement
compliance. It is stipulated that in order to avail of these benefits, one must have worked for three (3)
consecutive or accumulated months in the current crop year prior to death or giving birth.
This is in contrast to requirements to avail of the SSS and Philhealth which are not too stringent. From 1992
2010, only 55% of the budget for death benefits were distributed, while 80% were released for maternity benefits.
The COA has even suggested raising the amount of benefits received but the Bureau of Workers with Special
Concerns (BWSC) refused, saying their budget is too low.
3. Most of the funds for socio-economic projects are cornered by 3 big groups of planters and millers. Also, a
large chunk of the fund of the Socio-Economic Program Related Fund (SEPRF) are put in investments by the
Bureau of Workers with Special Concerns (BWSC), which is under the Department of Labor and Employment
(DOLE).
These 3 groups who corner the funding are associations of millers and planters such as the Sugar Industry
Foundation Inc. (SIFI); National Federation of Sugarcane Planters (NFSP); and United Sugar Producers Federation
of the Philippines (UNIFED) and some others.
The amount of investments in the SEPRF reached P322,452,546.75 in 2012. Based on the report of the
Commission on Audit (COA) as of December 31, 2012, this is composed of P316,482,927.54 in Treasury Bills and
P5,875,264.33 in other investments and Marketable Securities.
Overall, the record of the BWSC with regards to the 20-year performance of the SEPRF is not that impressive. It is
bragging that it was able to assist 471,938 persons during that period. But if you divide this into 20 years, the
average per year would be only 23,597. If there are 500,000 ASWs and millworkers all over the Philippines, this is
less than 5% every year. Its assistance during the Tiempos Muertos (Dead Season) for example is too low at
17,952 assisted in a period of 20 years. This averages only 898 every year or is less than 0.2% of the total number
of workers.
4. The workers also have no real voices in the National Tripartite Council (NTC) and District Tripartite Councils
(DTC) because they are in the minority in both bodies. Its another matter if those representing them voice out
their real interests.

Even if AFWs and millworkers have two representatives each in National Tripartite Council (NTC) in the sugar
industry, workers are still a minority. The Secretary of Labor is the one who decides who their representatives
would be. That is also the case in the District Tripartite Councils (DTC) where the millworker has one
representative and two (2) for the AFWs. There are ten members in the NTC and seven for the DTC.
5. The Commission on Audit (COA) discovered many anomalies involving both the CBF and SEPRF and no one
has been punished for this. This includes non-distribution of the Cash Bonus Fund to the workers and nonremittance of unclaimed/undistributed funds to DOLE Regional Offices.
Some of the anomalies involving the CBF are the following:
a. There is no proof of distribution of CBFs to workers. Aside from this, the increase in the costs of
Unreleased/Unclaimed CBF and Undistributed CBF is an indication of delay or non-distribution of the fund
to workers.
b. The collection and distribution of the SAP fund under RA 809 for 16 crop years starting 1992-1993 up to
2007-2008 that totals P1.26 billion is not being recorded in the books of the BRW-SAP. This is due to the
failure of the management of BRW-SAP to finalize and issue out the Department Order on the General
Guidelines for the Implementation of Section 9 of RA 809.
c. Non-remittance of forfeited unclaimed/undistributed CBF to the Department of Labor and Employment
Regional Offices (DOLE-ROs). This accumulated to P28.753 million from 1992- 2004.
Some of the anomalies involving the SEPRF are the following:
a.

The 20% tax allotted for the Socio-Economic Project Related Fund (SEPRF) was reported based on the
bank statement instead of the Report on Sugar Production, Withdrawals, Lien Collections and
Remittances (RSPWLCR). Because of this, there is no assurance on the total amount of what was remitted
and recorded into the book of accounts of the BWSC-SAP.

b. According to the report by COA in 2008 the construction of the Annex Building of the Sugar Workers
Livelihood Center (SWLC) in Bacolod City, Negros Occidental and the SWLC in Malaybalay, Bukidnon were
delayed by 6 years.
c. In 2007 the whole SWLC in Negros Occidental was made into the office of the DOLE-Negros Occidental
Provincial Office (DOLE-NOPO).
Of the 29 classrooms built with an average price of P200,000 each:
a. Two ( 2) were made into Principals offices
b. There were other classrooms that were built not according to the structural design and specifications,
and there were some that were built with low quality materials.
c. Five (5) classrooms cost P2M or P400,000 each which is double the price of the others built and were
constructed in areas not in the list of the Department of Education that have critical shortages of
classrooms.
Of the 63 persons who finished the course in the NFSP Sugar Workers FoundationTechnical and Livelihood Skills
Training Center, 21 or 33.33% only were dependents of AFWs. 42 or 66.67% were either recommended by
politicians, NGOs/Charitable Institutions or officials/employees of NFSP.

In 2012, the COA reported the following:

BWSC commented that there was a transfer of P11 million to Region VI that was embezzled by the Cashier. The
Bureau replaced the amount to pay for the intended expenses. This amount was not booked in the region, hence
remained unliquidated in the Bureaus books. There was no update on the case filed.
BWSC explained that a P5,397,650.98 balance was released to two Planter Associations (PAs), the SAMAKABA and
CSE from Region IV. The President of the SAMAKABA Planters Association embezzled the amount and failed to
turn over the corresponding CBF to its Planter Members including sugar workers. Cases were filed by the DOLE
ROs and an order was issued that SAMAKABA should return back the UCBF but unfortunately no cash or
properties were recovered to date. In the case of CSE, a consultative meeting was conducted by the Federation
with the concerned planter members. The PAs claimed that they had distributed the CBF to the sugar workers but
the required supporting documents for the liquidation of Cash Bonus by the Planters were not submitted to PAs.
The Bureau sent notices to the concerned ROs for the submission of the Special CBF Payroll but unfortunately,
there were no updates/progress reports received.
Even the COA is wondering why the DOLE ROs are ignoring the law in the imposition of penalties for those who
are late in remitting liens and UCBF. In 2012, the COA reported that the officials commented that the DOLE
was not amenable to the enforcement of sanctions, rather the moves should be towards exhausting all avenues
possible for the resolution of issues with penalties as last resort.
According to the law, the penalty for planters and millers who do not distribute the CBF after a designated time
need to be penalized 10% of the amount every month. They can also be detained for not less than 6 months but
should not exceed for a year or they would be fined not less than P5,000 but should not exceed P20,000. One can
also be jailed and fined at the same time. If the one who violates is a corporation, trust or firm, partnership,
association or other entities, those who can be fined are responsible officials who include the president, vice
president, chief executive officer, general manager, managing director or partner.
In essence the SAP is a white elephant because the government is wittingly or unwittingly admitting that the
workers in the sugar industry and their families are in dire straits.
As such any proposed bill in Congress such as HB 2327 of Hon. Lucy Torres Gomez which seeks to increase the
collection of liens among others from P10 per picul to P10 per 50 kilogram bag of sugar should take cognizance of
these facts first before amending RA No. 6982.
Consequently, an increase in the collection of the SAP would only further increase the unclaimed/undistributed
CBF and anomalous and corrupt practices and without anybody penalized for these.
UMA recommends the following:
1. Push for a comprehensive investigation on the ranks of millers, planters and the DOLE and file
appropriate cases against those involved in anomalies in the SAP through the Ombudsman, Regional
Trial Court (RTC) or Supreme Court (SC).
2. Implement all the benefits due to agricultural sugar workers and other workers in the sugar
industry.Directly distribute CBF to all sugar workers including sacadas (migratory workers). Push DOLE to
distribute unclaimed and undistributed CBF directly to the sugar workers.
3. Create a trust fund for the associations, unions and organizations of sugar workers together with DOLE.
4. Abolish the pakyaw system,
5. Increase wages of agricultural sugar workers.