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R ep ub lic o f th e P hilip pin es ( il E P A R W E N T OF L A B O R ANDE M P L O Y M E N Tepartment of Labor and Employment i\d m in is tra t!V 8 S e rv ic e C e n tra l R e c o rd a S e d J o n .G S DIntramuros, Manila I

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Department Order No. ~ - I \ ~ .-----":r----Series of2012Creation of a Tripartite Consultative Council for the Implementation of theSocial Amelioration and Welfare Program (SAWP)for Workers in the Biofuel Industry

I. Legal Basis/Background1. Pursuant to RA 9637 or the Biofuels Act of 2006, the Department of Labor and Employmentshall, 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 sugarcaneshall be used as feedstock; and further, the establishment of a similar mechanism for thebenefit of other biofuel workers.

3. The biofuel industry is composed of bioethanol out of sugarcane and molasses and biodieselor 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 andmanagement of the Social Amelioration and Welfare Program for Biofuel Workers, inconsultation with concerned government agencies and other stakeholders.

5. Consistent with Article 275 of the Labor Code which provides for the adoption oftripartismin decision and policy making among government, workers' and employers' organizations,the DOLE shall establish a tripartite consultative mechanism for the implementation of theSAWP for workers in the biofuel industry.

n. Creation of a Tripartite Consultative Council1. 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 inpolicy-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; andOne (1) representative from Philippine Coconut Authority (PCA) (ex-officio) and Vice Chairfor Biodiesel Concerns.Labor Sector (3)Two (2) Biodiesel Feedstock WorkersOne (1) Biodiesel Plant WorkerManagement Sector (3)Two (2) Biodiesel ManufacturersOne (1) Biodiesel Corporate Feedstock Producer

3. The Tee in the Bioethanol Sector shall have eleven (11) members composed of thefollowing: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 ViceChair for Bioethanol Concerns.Labor Sector (4)Two (2) representative from the Plant Workers' Group; andTwo (2) representatives from Field Workers' GroupManagement Sector (4)Two (2) representative from the Producers' Group; andTwo (2) representatives from Planters' Group

4. The representatives from the Labor and Management Groups shall be appointed by theSecretary from among the nominees from their respective groups. Where there is nonomination from the organized group or no existing organization, the DOLE Secretary mayappoint 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 newcrop or alternative feedstock as duly certified by the Department of Energy for biofuelproduction.

6. The Bureau of Workers with Special Concerns (BWSC) of the DOLE shall act as thetechnical and administrative secretariat to the TCC and shall directly report to the Secretaryor his/her designated Undersecretary.

7. The Secretary shall appoint representatives from the Management and the Labor Groupsfrom among the nominees of the biofuel manufacturers, feedstock producers and workers'

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organizations, respectively for a term of three (3) years. In case of vacancy, the successorshall serve the unexpired portion of the term of hisVher predecessor. The successor maycome 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 appointworkers' representatives from among the three (3) nominees (individual) of the BWSC whocan represent the labor sector.

II I. C riteria for N om ination of T CC Members1. Representation by the Labor Group

a. A legitimate labor organization, union or employees' association or cooperative fromthe biofuel plantworkers or industrial workers providing feedstock for biofuelproduction; andb. A legitimate organization, federation, association or cooperative of farmers or farmworkers, duly registered by the DOLE or any recognized government registering agency

representing farmers and farmworkers providing feedstock for biofuel production.2. Representation by the Management Group

a. Duly-appointed officers or representatives ofbiofuel producers or association ofbiofuelmanufacturers duly accredited by the DOE; andb. An official or representative of Coconut Oil (CNO) mill providing feedstock forbiodiesel production and duly registered with the PCA.

IV . P ow er an d F un ctio ns1. The TCC shall serve as the advisory body to the DOLE relative to the effectiveimplementation of SAWP in the biofuel industry. Specifically, it shall:a. Assist in the development and evaluation of policies relating to SAWP in the biofuelindustry;b. Recommend to the Secretary, any programs and projects that will ensure the effective andefficient utilization of the SAWP Fund allocated for socio-economic programs and anyand all of its incomes and interests;c. Evaluate and recommend to the Secretary, any necessary adjustment in the amount of lienand in the formula to be used in determining the amount of lien for the implementation ofSAWP;d. Recommend to the Secretary, the manner of utilization of the forfeited amount, includingthe interest earnings, viz for the development of projects and programs for biofuelworkers;

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e. Recommend to the Secretary, whenever necessary, the creation of sub-committees toensure that specific concerns are addressed;f Recommend to the Secretary, whenever necessary, the creation of local TCCs to ensureparticipation of biofuel manufacturers, feedstock producers and workers in policydevelopment and program formulation and implementation at the local level;g. Adopt rules of its own proceedings; andh. Perform such other functions necessary to attain the objectives of the SAWP for biofuelworkers.

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 uponrequest 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 representativeand the members of the TCC shall be entitled to reimbursement of reasonable travelingexpenses. The representatives from the workers and employers group shall, in addition, beentitled to per diem for meetings attended by them which may be charged against theavailable fund of DOLE for SAWP administration, subject to availability of fund andaccounting and auditing rules.VI. Repealing Clause

This Order amends DOLE Department Order No. 100-10 and all rules and administrativeissuances inconsistent with this Order are hereby superseded.VIT. Effectivity

ThisDepartment Order shall take effect immediately.

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