WHEREAS, Executive Order No. 395 dated January 24. 1997 created the Philippine Council for Productivity (PCP) to oversee the implementation of the National Action Agenda for Productivity to accelerate the country's program for global excellence and international competitiveness;

WHEREAS, the Council is supported by a Joint Secretariat composed of the Department of Trade and Industry, Department of Labor and Employment/National Wages and Productivity Commission, and the Development Academy of the Philippines al1d headed by the National Economic Development Authority;

WHEREAS, the Council through its Resolution No. I dated 21 March 1997, created a Technical Committee composed of Undersecretaries or Second-in-Rank officials whose function among others, is to implement and/or facilitate the implementation of policy and operational directives of the PCP;

WHEREAS, the Council undertook the study entitled "Institutional Structure for Productivity" which recommends that the National Wages and Productivity Commission and the Development Academy of the Philippines comprise the full-time secretariat of the Council, and that an Executive Committee be created to facilitate prompt and more responsive decision making on PCP and other productivity-related matters, thus replacing the existing Technical Committee;

WHEREAS, the Council approved the above-mentioned recommendations in its meeting last 24 February 2000;

WHEREAS, there is a need to amend E.O. 395 to implement the above-mentioned changes in the PCP structure;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers vested in me by law, do hereby amend Executive Order No. 395, dated January 24. 1997, and order the following:

SECTION 1. Section 4 paragraph 3 is hereby amended as follows

Technical and administrative support to the Council shall be provided by a full-time permanent Secretariat composed of the National Wages and Productivity Commission, Department of Labor and Employment (NWPC-DOLE) and the Productivity & Development Center, Development Academy of the Philippines (PDC-DAP).

SEC. 2. Creation of a PCP Executive Committee. A PCP Executive Committee is hereby created to facilitate timely decision making of the PCP. The PCP Executive Committee shall have the following functions and composition:

2.1	Functions of the PCP Executive Committee. The Executive Committee shall have the following functions:

a)	To facilitate implementation of policy and operational directives of the PCP;
b)	To review and evaluate policy recommendations of the Technical Working Groups (TWGs) and the Joint Secretariat, for endorsement to the PCP;
c)	To assist the PCP in monitoring the TWGs in the implementation of their sectoral plans;
d)	To recommend for approval of the PCP specific programs/activities necessary for the implementation of the NAAP; and
e)	To act on policy and operational matters as maybe determined by the PCP Chair upon recommendation of the PCP Secretariat.

2.2	Composition of the PCP Executive Committee. The Executive Committee shall be composed of the following PCP members:

• Director General of the National Economic and Development Authority Executive Director of the National Wages and Productivity Commission


• President of the Development Academy of the Philippines


• President of the Philippine Quality and Productivity Movement PCP Vice-Chairman for Business Sector


• Chairman of the Labor Advisory and Consultative Council


• Chairs of the PCP - Technical Working Groups
  

SEC. 3. Section 7 of E.O. 395 is amended as follows:

The budget of the PCP Secretariat and the PCP Executive Committee (PCP-ExCom) for the year 2000 shall be sourced from the remaining PCP budget for 2000 originally allocated for the activities of the PCP Joint Secretariat and Technical Committee, respectively, lodged in the NEDA budget. The NEDA shall release the funds in the form of cash advances to NWPC which shall in turn submit to NEDA a duly audited COA report on the utilization of the cash advances.

Henceforth, the budget for the operations of the Council, Executive Committee and Secretariat shall be incorporated in the budget of the NWPC-DOLE. However, the budget preparation and utilization of the PCP funds with respect to the allocation of the Council, the PCP-ExCom and the PCP Secretariat shall be determined through a mutual agreement by the PDC-DAP and NWPC-DOLE and recommended jointly through the PCP-ExCom to the Council Chair for approval.

The government agencies involved in the implementation of the Medium-Term National Action Agenda for Productivity (MNAAP) 2000-2004 shall continue to include in their respective budgets the necessary funds required for their productivity programs and activities.

SEC. 4. This Executive Order shall take effect immediately

Done in the City of Manila, this 4th day of September, in the year of Our Lord two thousand.


By the President:

RONALDO B. ZAMORA
Executive Secretary