WHEREAS, on December 24, 1970, acting on the proposals made by the leaders of the sugar industry, I, as President of the Philippines, directed the Sugar Quota Board to issue an order for the collection of a Stabilization Fee of P1.00 for every picul of sugar produced in lieu of the P3.00 charged on every picul of domestic sugar for an amelioration fund which I had ordered to be established earlier, and thereafter, the Sugar Quota Board issued Philippine Sugar Order No. 3, series 1970-71, dated December 29, 1970, amended later by Philippine Sugar Order No. 4, series 1970-71, dated January 12, 1971, and further later amended by Philippine Sugar Order No. 31, series 1971-72, dated December 23, 1971, whereby a Stabilization Fee of P1.00 per picul on all sugar produced would be collected ninety per cent (90%) of which is to be distributed as bonuses to the sugar worker and/or disposed of according to any agreement between the employer and the labor union of his employees, and the balance of ten per cent (10%) to form as the working fund of the Sugar Industry Foundation, Inc.; and

WHEREAS, despite the above-mentioned Philippine Sugar Orders, and the corresponding Field Service Instructions issued by the Sugar Quota Administration, there have been verified reports that some sugar farm and mill workers have failed to enjoy their legitimate share in the benefits of the social amelioration program of the sugar industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, and pending the full implementation of Presidential Decree No. 388, including the formal organization of the Philippine Sugar Commission in accordance, therewith, and in order that the desired objectives of the Sugar industry's amelioration program for the improvement of the social and economic conditions of the sugar workers and their families can be achieved in an orderly and equitable manner, and upon the recommendations of the leaders of the sugar planters, millers and workers, do hereby order and decree that the Secretary of Labor shall exercise general supervision and control over and to issue the necessary rules and regulations on the proper and equitable implementation of the social amelioration program of the sugar industry, pursuant to the abovementioned Philippine Sugar Orders of the Sugar Quota Board.

Any person who shall wilfully refuse upon demand, to pay his share of the stabilization fee or the legitimate claim of any worker covered by this Decree as determined by the Secretary of Labor shall be fined the amount of P1,000.00 nor more than P10,000.00 or an imprisonment of not less than one (1) year for more than five (5) years or both such fine and imprisonment at the discretion of the court or military tribunal: Provided, that if the offender is a corporation, firm, partnership, or association, the penalty shall be imposed upon the guilty officer or officers, as the case may be, and if such guilty officer or officers are aliens, in addition to the penalty prescribed, he or they shall be deported without further proceedings on the part of the Commission on Immigration and Deportation.

This Decree shall take effect beginning the crop year 1974-1975.

Done in the City of Manila, this 21st day of December, in the year of Our Lord, nineteen hundred and seventy-four.