WHEREAS, the goal of raising the living standard of the Filipino workingman and enhancing the viability and competitiveness of Filipino enterprise urgently requires major improvements in national productivity as the key to rising real wages and national economic competitiveness vis-a-vis the whole world;

WHEREAS, it is now essential that the Government launch a national productivity movement that will fully utilize the initiative, participation and cooperation of labor and management, particularly in the industrial sector;

WHEREAS, there is need to gain a better knowledge of the close relationship between productivity and wages and other economic factors and their effects on industrial and agricultural development and the national economy;

WHEREAS, it is necessary to create an agency to actualize a continuing system of research and program development, to initiate actions thereon, and to recognize performance in the field of productivity;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, and the authority vested in me by Presidential Decree No. 1416, do hereby order and ordain:

SECTION 1. The National Productivity Commission, hereinafter referred to as the Commission, is hereby created and attached to the National Economic Development Authority.

SECTION 2. The Commission shall have the following functions:

a) To mobilize labor-management cooperation into a national productivity movement;

b) To undertake a continuous study of the factors that affect productivity and determine the nature and extent of their influence on productivity development;

c) To formulate policies and programs to increase productivity and to implement standardized productivity improvement programs for industry;

d) To undertake and disseminate researchers and studies for the effective development of programs and scheme on productivity improvements;

e) To assist employers and workers to have a better understanding of the close relationship between productivity and wages and other economic factors and their effects to particular industries.

SEC. 3. In implementing its functions, the Commission may call upon the assistance of any government or private entity. Particularly, it shall establish the close coordination with the National Wages Council, the Ministry of Labor and Employment, the Ministry of Industry, and the Ministry of Agriculture.

SEC. 4. The Commission shall be composed of the Minister of Labor and Employment and the Minister of Industry as Co-Chairman, with the Minister of Economic Planning, Minister of Agriculture, President of the Development Academy of the Philippines and two representatives each from workers and employers organizations who shall be appointed by the President to serve a term of three years, upon recommendation of the Co-Chairmen as members. The Government representatives in the Commission may designate their deputies in case they cannot attend the meeting of the Commission.

SEC. 5. The Commission shall be assisted by a Secretariat to be headed by an Executive Director who shall be its Chief operating officer.

SEC. 6. Upon the recommendation of the Commission, the President shall appoint an Executive Director. The Commission shall prescribe the qualifications of the Executive Director.

SEC. 7. The Chairman of the Commission shall appoint the personnel necessary to perform its functions and to determine their qualifications and compensations, subject to pertinent civil service, compensation and budgetary laws.

SEC. 8. The Minister of the Budget shall immediately make available such funds as may be adequate to meet the operational requirements of the Commission for calendar year 1980. Beginning with calendar year 1981, an appropriate yearly fund allotment to the Commission shall be included in the General Appropriations Act.

SECTION 9. The Commission shall issue the appropriate rules and regulations to carry out the provisions of this Executive Order.

SECTION 10. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 18th day of August, in the year of Our Lord Nineteen Hundred and Eighty.


By the President:

(SGD.) JOAQUIN T. VENUS, JR.
Presidential Assistant