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Republic of the Philippines

epartment of Labor and Employment

Intramuros, Manila

i i\dministrat!V8 I
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( ilEPARWENT OFLABOR AND EMPLOYMENT Service Central Recorda SedJon.GSD

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Department Order No. ~ Series of2012

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Creation of a Tripartite Consultative Council for the Implementation of the Social Amelioration and Welfare Program (SAWP) for Workers in the Biofuel Industry
I. Legal Basis/Background 1. Pursuant to RA 9637 or the Biofuels Act of 2006, the Department of Labor and Employment shall, among others, recommend plans, policies and programs that will enhance the social impact of the National Biofuel Program. 2. Republic Act 9367 also provides for non-diminution of the existing benefits already enjoyed by sugar workers under RA 6982, or the Sugar Amelioration Act of 1991, in case sugarcane shall be used as feedstock; and further, the establishment of a similar mechanism for the benefit of other biofuel workers. 3. The biofuel industry is composed of bioethanol out of sugarcane and molasses and biodiesel or coco methyl-ester (CME) out of coconut. 4. Section 2 Chapter VI of the Joint Administrative Order No. 2008-1, the National Biofuel Board authorizes the DOLE to act as the implementing agency in the development and management of the Social Amelioration and Welfare Program for Biofuel Workers, in consultation with concerned government agencies and other stakeholders. 5. Consistent with Article 275 of the Labor Code which provides for the adoption oftripartism in decision and policy making among government, workers' and employers' organizations, the DOLE shall establish a tripartite consultative mechanism for the implementation of the SAWP for workers in the biofuel industry.

n. Creation

of a Tripartite Consultative Council

1. A Tripartite Consultative Council (TCC) for SAWP for each of the sectors (bioethanol and biodiesel) in the Biofuel Industry (TCC) is hereby created composed of the management, labor and government representatives, which shall serve as the advisory body to the DOLE in policy-making, program implementation and monitoring of the SAWP for biofuel workers.

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2. The

Tee in the

Biodiesel Sector shall be composed of nine (9) members, to include:

Government Sector (3) Secretary of DOLE or his/her duly authorized representative as ex-officio Chairperson; One (1) representative from Department of Energy (DOE) to act as ex-officio Co-Chair; and One (1) representative from Philippine Coconut Authority (PCA) (ex-officio) and Vice Chair for Biodiesel Concerns. Labor Sector (3) Two (2) Biodiesel Feedstock Workers One (1) Biodiesel Plant Worker Management Sector (3) Two (2) Biodiesel Manufacturers One (1) Biodiesel Corporate Feedstock Producer 3. The Tee in the Bioethanol following: Sector shall have eleven (11) members composed of the

Government Sector (3) Secretary of DOLE or his duly authorized representative as ex-officio Chairperson; One (1) representative from DOE (ex-officio) as Co- Chair; and. One (1) representative from Sugar Regulatory Administration (SRA) (ex-officio) and Vice Chair for Bioethanol Concerns. Labor Sector (4) Two (2) representative from the Plant Workers' Group; and Two (2) representatives from Field Workers' Group Management Sector (4) Two (2) representative from the Producers' Group; and Two (2) representatives from Planters' Group 4. The representatives from the Labor and Management Groups shall be appointed by the Secretary from among the nominees from their respective groups. Where there is no nomination from the organized group or no existing organization, the DOLE Secretary may appoint a representative to the TCC as he/she may deem fit. 5. The composition of the TCC may be increased by the DOLE Secretary upon entry of new crop or alternative feedstock as duly certified by the Department of Energy for biofuel production. 6. The Bureau of Workers with Special Concerns (BWSC) of the DOLE shall act as the technical and administrative secretariat to the TCC and shall directly report to the Secretary or his/her designated Undersecretary. 7. The Secretary shall appoint representatives from the Management and the Labor Groups from among the nominees of the biofuel manufacturers, feedstock producers and workers' 2

organizations, respectively for a term of three (3) years. In case of vacancy, the successor shall serve the unexpired portion of the term of hisVher predecessor. The successor may come from the nominees of the group which nominated the predecessor.
8.

In case there are no nominees from the organized labor group, the Secretary shall the appoint workers' representatives from among the three (3) nominees (individual) of the BWSC who can represent the labor sector.

III. Criteria for Nomination of TCC Members

1. Representation by the Labor Group

a. A legitimate labor organization, union or employees' association or cooperative from the biofuel plantworkers or industrial workers providing feedstock for biofuel production; and b. A legitimate organization, federation, association or cooperative of farmers or farm workers, duly registered by the DOLE or any recognized government registering agency representing farmers and farm workers providing feedstock for biofuel production.
2. Representation by the Management Group

a. Duly-appointed officers or representatives ofbiofuel producers or association ofbiofuel manufacturers duly accredited by the DOE; and b. An official or representative of Coconut Oil (CNO) mill providing feedstock for biodiesel production and duly registered with the PCA. IV. Power and Functions
1.

The TCC shall serve as the advisory body to the DOLE relative to the effective implementation of SAWP in the biofuel industry. Specifically, it shall: a. Assist in the development and evaluation of policies relating to SAWP in the biofuel industry; b. Recommend to the Secretary, any programs and projects that will ensure the effective and efficient utilization of the SAWP Fund allocated for socio-economic programs and any and all of its incomes and interests; c. Evaluate and recommend to the Secretary, any necessary adjustment in the amount of lien and in the formula to be used in determining the amount of lien for the implementation of SAWP; d. Recommend to the Secretary, the manner of utilization of the forfeited amount, including the interest earnings, viz for the development of projects and programs for biofuel workers;

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e. Recommend to the Secretary, whenever necessary, the creation of sub-committees to ensure that specific concerns are addressed; f Recommend to the Secretary, whenever necessary, the creation of local TCCs to ensure participation of biofuel manufacturers, feedstock producers and workers in policy development and program formulation and implementation at the local level;

g. Adopt rules of its own proceedings; and h. Perform such other functions necessary to attain the objectives of the SAWP for biofuel workers. 2. The Tee shall hold meetings once every quarter at a place, date and time fixed by it; provided that it may conduct special meetings called upon by the Chairperson, or upon request by at least three (3) of its members to the Chairperson. V. Entitlement to and Payment of Travelling Expenses Subject to the availability of fund, the Chairperson or his/her duly-authorized representative and the members of the TCC shall be entitled to reimbursement of reasonable traveling expenses. The representatives from the workers and employers group shall, in addition, be entitled to per diem for meetings attended by them which may be charged against the available fund of DOLE for SAWP administration, subject to availability of fund and accounting and auditing rules. VI. Repealing Clause This Order amends DOLE Department Order No. 100-10 and all rules and administrative issuances inconsistent with this Order are hereby superseded. VIT. Effectivity This Department Order shall take effect immediately.

ROSALIN~iMA~IS-BALDOZ

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OCT 2 9 ,2012