Pursuant to Rule VII, Section 1/c of the Implementing Rules and Regulations of RA 6982, the following guidelines shall be observed by all concerned in determining the cash bonus fund to be distributed to covered employees/workers of sugar planters associations/cooperatives and national organizations of sugar producers.

SECTION 1.       Definition of Term. - As used in this Order,

a)         "Cash Bonus Fund or CBF" refers to the fund for distribution as social amelioration bonus to the employees/workers of the planters associations/cooperatives as well as national organizations of sugar producers, including any and all incomes or interests derived therefrom.

b)         "Planters Association/Cooperative" refers to the organization of sugarcane planters in a particular mill district.

c)         "National Organization of Sugar Producers" refers to the national federation or confederation of sugarcane planters or millers' associations/cooperatives.

d)         "CBF Lien" refers to the 80% of the total lien, e.g. currently at P7.00 per picul levy or equivalent to P5.60 per picul collected from sugar production, pursuant to RA 6982.

e)         "Piculs" refers to a unit of measurement which is equivalent to 63.25 kilos.

f)          "LKG" refers to a unit of measurement which is equivalent to 50 kilos.

g)         "Sugar Quedan" refers to a negotiable warehouse receipt evidencing ownership of sugar stock issued by the mill to planters and to itself upon production of sugar.

h)         "Distribution" refers to the actual delivery to and receipt by the covered employees/workers of the cash bonus as evidenced by the special payroll.

i)          "Association or organization Due" refers to the membership fee being paid by the planters/mills affiliated with the association/cooperative or organization in the form of quedans or cash.

j)          "SRA" refers to the Sugar Regulatory Administration.

SECTION 2.       Coverage. - All planters associations/cooperatives and national organizations of sugar producers.

SECTION 3.       Sources of the Employees/Workers' Cash Bonus Fund. - As contemplated in Rule VII, Section 1/c of the Implementing Rules and Regulation of RA 6982 the cash bonus fund of the employees/workers of the sugar planters associations/cooperatives and national organizations of sugar producers shall be derived from the portion of the total amount of the association dues collected by them whether such dues are paid by their members/constituents in the form of quedans or in cash.

SECTION 4.       Formula for Computing the Employees/Workers Cash Bonus Fund. - Without prejudice to existing formula more beneficial to workers already being applied by the planters' associations/cooperatives and national organizations, the following formula shall be applied for computing the cash bonus fund of their employees/workers:

a)         Where association dues are paid in the form of quedans:

Step 1.         Determine CBF by multiplying total dues (quedans) for the reference crop year by P5.60 (CBF lien per picul) or P4.42688 (CBF lien per LKG)

Step 2.         Determine individual employees/worker's share by using the formula in Rule VII, Section 3 of the Implementing Rules and Regulations of RA 6982.

b)         Where association dues are paid in cash:

Step 1.         Convert association dues paid in cash into its equivalent in volume (piculs to LKG) of sugar.

Formula:

Association Dues Paid in Cash
---------------
Price of Raw Sugar in the Mill District
(Average composite price of sugar for particular crop year issued by the SRA)

Step 2.         Multiply association dues (in volume of sugar) by P5.60 (piculs) or P4.42688 (LKG)

Step 3.         Follow step 2 of item a.

SECTION 5.       Effectivity. - This Order shall take effect immediately.

Adopted: 19 May 1997