Business Enterprise Productivity Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) JUL 14 A0:40 SENATE S. No. 478 Introduced by Senator Jinggoy Ejercito Estrada AN ACT PROMOTING INCLUSIVE AND SUSTAINABLE BUSINESS ENTERPRISE PRODUCTIVITY GROWTH, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6971, OTHERWISE KNOWN AS THE "PRODUCTIVITY INCENTIVES ACT OF 1990" EXPLANATORY NOTE One important indicator of our country's economic development is labor productivity. The ability of the enterprise to compete globally is dependent on the enterprises to produce and offer goods and services in the most effective and efficient way. Accordingly, it is imperative for these enterprises to promote labor productivity not only to expand their business opportunities but also to uphold the interest of the workers. Republic Act No. 6971, otherwise known as the "Productivity Incentives Act of 1990", was signed into law on November 22, 1990 to "encourage higher levels of productivity, maintain industrial peace and harmony and promote the principle of shared responsibility in the relations between workers and employers" and accordingly, "to provide corresponding incentives to both labor and capital for undertaking voluntary programs to ensure greater sharing by the workers in the fruits of their labor".

In 2017, labor productivity growth registered its highest at 8.69%. However, due to the unprecedented impact of the pandemic, the country was not able to sustain this upward trend when it registered only 2.4% growth from 2000 to 2021. The 2021/2022 Integrated Survey on Labor and Employment (ISLE) Rider Survey on Productivity Improvement Program (PIP) and Gainsharing (GS) Practices conducted by the Philippine Statistics Authority (PSA) revealed that 41% of 36,342 establishments with twenty (20) or more workers implemented various PIPs. Majority of these establishments is from the Service Sector which accounts for 74%, followed by the Industry Sector which comprises 23%, and the Agriculture Sector which accounts for 3%. The top three (3) PIPs implemented are: • 7S of Good Housekeeping or the training program on waste elimination through workplace organization. 7S means sort, systematize, sweep, standardize, self-discipline, sustain, and safety (64%) • Continuous Process Improvement or the act of implementing improvements to a product, service, or process (55%) • Client Satisfaction Measurement or the assessment of performance from the customer's point of view (52%) A total of 1.67 million workers are covered by PIPs from the 14,774 establishments around the country and 39% or 656,493 of them benefitted from Productivity Incentives: 87% of them are rank and file or production workers, 9% are supervisors or foremen, and 4% are managerial or executive officers. These figures affirm that labor productivity, despite the implementation of the Republic Act No. 6971 and its milestones needs to be improved, and the system and structure supporting it under the guidance of the National Wages and Productivity Commission (NWPC) should be strengthened. ^ 2021/2022 ISLE Rider Survey Productivity Improvement Program (PIP) and Gainsharing (GS) Practices - National Wages and Productivity Commission

Especially in the midst of the debate on wage increases and the challenges on enacting a legislated wage hike, promoting the productivity of workers and business enterprises should be given focus to provide a holistic view on how to achieve our Constitutional mandate to "affirm labor as a primary economic force", "protect the rights of workers and promote their welfare" and at the same time, "encourage private enterprise and provide incentives to needed investments". As pronounced in Article XIII Section 3 of the 1987 Constitution, "The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and growth." The "Business Enterprise Productivity Act" seeks to fortify the intentions of the "Productivity Incentives Act of 1990", by promoting inclusive and sustainable work productivity programs. It aims to reinforce labor productivity through 1) the establishment of a Productivity Incentives Committee (PIC); 2) the adoption of productivity incentive programs; 3) granting productivity incentives to employees, and 4) providing a tax incentive to business establishments for granting incentives to employees. It seeks to promote a working environment with an increased level of productivity, maintain industrial harmony, and propel shared commitment and responsibility among employers and employees. In view of the foregoing, the swift approval of this measure is highly recommended. JINGGOY EJERCITO ESTRADA

sid is it TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session ) JUL 14 A10:40 SENATE RECLAD: S. No. 478 Introduced by Senator Jinggoy Ejercito Estrada AN ACT PROMOTING INCLUSIVE AND SUSTAINABLE BUSINESS ENTERPRISE PRODUCTIVITY GROWTH, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6971, OTHERWISE KNOWN AS THE "PRODUCTIVITY INCENTIVES ACT OF 1990" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 1 of Republic Act No. 6971 is hereby amended to read as

follows: "Section. 1. Short Title. - This Act shall be known as the "BUSINESS ENTERPRISE Productivity EIncentives] Act fof 1990]".

Sec. 2. Section 2 of Republic Act No. 6971 is hereby amended to read as

7 follows: "Sec. 2. Declaration of Policy. - It is {thel HEREBY declared THE policy of the State to: "A) fencourage higher levels of productivity, ENSURE THAT HIGH AND RISING LEVEL OF PRODUCTIVITY SHALL BE THE OVERRIDING GOAL OF NATIONAL AND SECTORAL DEVELOPMENT PLANS TO IMPROVE THE COUNTRY'S OVERALL PRODUCTIVITY PERFORMANCE;

"B) PROMOTE A CULTURE OF PRODUCTIVITY THAT SEEKS TO CONTINUALLY ENHANCE WHAT ALREADY EXISTS, BASED ON THE BELIEF THAT ONE CAN DO THINGS BETTER TODAY THAN YESTERDAY AND TOMORROW BETTER THAN TODAY." "C) PROMOTE GAINFUL EMPLOYMENT, IMPROVE WORKING CONDITIONS, maintain industrial peace and harmony, and promote the principle of PARTNERSHIP AND shared responsibility in the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of business enterprises to reasonable returns on investments and [to] FOR expansion and growth; AND, "D) accordingly tol [p]Provide corresponding incentives to both labor and [capital MANAGEMENT for undertaking voluntary. PRODUCTIVITY IMPROVEMENT programs [to ensure greater] AND GAINsharing Eby the workers in the fruits of their tabor]."

Sec. 3. Section 3 of Republic Act No. 6971 is hereby amended to read as

follows: "Sec. 3. Coverage. - This Act shall apply to all business enterprises with or without existing and duly recognized or certified labor organizations E, including government owned and controlled corporations performing proprietary functions. It shall cover all employees and workers including casual, regular, supervisory and managerial employees] REGARDLESS OF THEIR POSITION,

DESIGNATION, OR STATUS, AND THE MANNER BY WHICH THEIR SALARIES/WAGES ARE PAID."

Sec. 4. Section 4 of Republic Act No. 6971 is hereby amended to read as

follows: "Sec. 4. Definition of Terms. - As used in this Act: "a) "Business Enterprise" refers to industrial, agricultural, or agro industrial establishments engaged in the production, manufacturing, processing, repacking, or assembly of goods, including service eriented enterprises, duly certified as such by appropriate government agencies. AN ENTITY DULY INCORPORATED, ORGANIZED, OR REGISTERED PURSUANT TO THE PREVAILING APPLICABLE LAWS, RULES, AND REGULATIONS; "B) "PRODUCTIVITY" IS THE RATIO OF OUTPUT OVER INPUT. IT ALSO REFERS TO THE EFFICIENT USE OF RESOURCES IN RELATION TO THE EFFECTIVE DELIVERY OF QUALITY GOODS AND/OR SERVICES. "[b)Labor Management "PRODUCTIVITY INCENTIVES Committee (PIC)" refers to a Inegotiating] body in a business enterprise composed of of [thel representatives flabor and] management/EMPLOYERS AND EMPLOYEES created to festablish] FORMULATE AND IMPLEMENT A PRODUCTIVITY IMPROVEMENT PROGRAM AND a productivity incentives program, and to settle [disputes] ISSUES arising Etherefrom in accordance with Section 9 hereof.] FROM THE INTERPRETATION OR IMPLEMENTATION OF THE SAID PROGRAMS;

"D) "PRODUCTIVITY IMPROVEMENT PROGRAM" REFERS TO A SET OF ACTIONS IDENTIFYING AND ADDRESSING PRODUCTIVITY PROBLEM AREAS FORMULATED BY THE PIC, USING EITHER A PRINCIPLE, TOOL, TECHNIQUE, METHOD, PRACTICE, GUIDELINE, MODEL, OR APPROACH TOWARDS PRODUCTIVITY IMPROVEMENT IN PEOPLE, INPUTS OR TECHNOLOGIES, PRODUCTS OR SERVICES, i0 POLICIES, AND PROCESSES, INCLUDING INNOVATIVE CAMPAIGNS THAT WOULD FOSTER AND SUSTAIN THE INTEREST OF BOTH LABOR AND MANAGEMENT ON SAID PROGRAM AND PROMOTE A CULTURE OF PRODUCTIVITY. IT SHALL CONTAIN, AMONG OTHERS, BENCHMARKS AND MEASUREMENT OF PRODUCTIVITY OR EFFICIENCY IMPROVEMENTS. "[e)] E) "Productivity Incentives Program" refers to a formal agreement festablished by the labor management committee] FORMULATED BY THE PIC containing a Eprocess that will promote gainful employment, improve working conditions and result in increased productivity, including cost savings, whereby the employees are granted salary bonuses proportionate to increases in current productivity over the average for the preceding three (3) consecutive years. The agreement shall be ratified by at least a majority of the employees who have rendered at least SiX (0) months -of continuous service) PRODUCTIVITY IMPROVEMENT PROGRAM AND PROVISIONS ON THE SHARING OF THE GAINS

AND/OR SAVINGS REALIZED FROM THE PRODUCTIVITY IMPROVEMENT PROGRAM, AND ITS COVERAGE, SHARING SCHEME, AND FORMS, MANNER, AND FREQUENCY OF PAYMENT OF SUCH INCENTIVES.

Sec. 5. Section 5 of Republic Act No. 6971 is hereby amended to read as

follows: "Sec. 5. ELabor Management) PRODUCTIVITY INCENTIVES Committee. - {a) A business enterprise or its employees, through their authorized representatives, may initiate the formation of a labor management committee that shall be composed of an equal number of representatives from the management and from the rank and file employees: Provided, That both management and labor shall have equal voting rights: Provided, further, That at the request of any party to the negotiation, the National Wages and Productivity Commission of the Department of Labor and Employment shall provide the necessary studies, technical information and assistance, and expert advice to enable the parties to conclude productivity agreements] BUSINESS ENTERPRISES EMPLOYING TEN (10) OR MORE SHALL ESTABLISH A PRODUCTIVITY INCENTIVES COMMITTEE, HEREINAFTER REFERRED TO AS PIC, COMPOSED OF REPRESENTATIVES FROM LABOR AND MANAGEMENT. FOR ESTABLISHMENTS EMPLOYING LESS THAN TEN (10), THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE) SHALL PROVIDE TECHNICAL ASSISTANCE ON THE CREATION OF PIC PURSUANT TO THE IMPLEMENTING RULES

AND REGULATIONS WHICH WILL HEREAFTER BE ISSUED. "Eb)] In business enterprises with {duly recognized or certified labor organizations, the representatives of tabor shall be those designated by the collective bargaining agents) of the bargaining unit(s)] LABOR- MANAGEMENT COUNCILS OR LABOR- MANAGEMENT COMMITTEES, THE PIC MAY BE A SUB-COMMITTEE THEREOF. "[c) In business enterprises without duly recognized or certified labor organizations, the representatives of tabor shall be elected by at least a majority of all rank and file employees who have rendered at least six (6) months of continuous service.] "ON EMPLOYEE REPRESENTATION IN THE PIC, FOR BUSINESS ENTERPRISES WITH A LEGITIMATE LABOR ORGANIZATION OR WORKERS' ASSOCIATION, THE REPRESENTATIVES SHALL BE THOSE DESIGNATED IN THE COLLECTIVE BARGAINING AGREEMENT OR BY THE SAID ORGANIZATION OR ASSOCIATION; WHILE FOR BUSINESS ENTERPRISES WITHOUT A LEGITIMATE LABOR ORGANIZATION OR WORKERS' ASSOCIATION, THE REPRESENTATIVES SHALL BE THOSE DESIGNATED BY AT LEAST A MAJORITY OF ALL RANK-AND-FILE EMPLOYEES."

Sec. 6. A new section to be denominated as Section 5-A shall be inserted

after Section 5 of Republic Act No. 6971 which shall read as follows: "SEC. 5-A. PRODUCTIVITY IMPROVEMENT PROGRAM. - THE PIC SHALL ENDEAVOR TO DEVELOP A PRODUCTIVITY IMPROVEMENT

PROGRAM, AS DEFINED IN THIS ACT, THAT WILL FORM PART OF THE PRODUCTIVITY INCENTIVES PROGRAM."

Sec. 7. Section 6 of Republic Act No. 6971 shall be amended as follows:

"Sec. 6. Productivity Incentives Program. - fa) The productivity incentives program shall contain provisions for the manner of sharing and the factors in determining productivity bonuses: Provided, That the productivity bonuses granted to labor under this program shall not be less than half of the percentage increase in the productivity of the business enterprise. D) Productivity agreements reached by the parties as provided in this Act shall supplement existing collective bargaining agreements. c) If, during the existence of the productivity incentives program or agreement, the employees will join or form a union, such program or agreement may, in addition to the terms and conditions agreed upon by labor and management, be integrated in the collective bargaining agreement that may be entered into between them. THE PIC SHALL ENDEAVOR TO DEVELOP THE PRODUCTIVITY INCENTIVES PROGRAM. WHENEVER GAINS OR SAVINGS ARE REALIZED FROM THE IMPLEMENTATION OF THE PRODUCTIVITY IMPROVEMENT PROGRAM, THE MANAGEMENT SHALL INITIATE THE DISCUSSION ON THE SHARING OF SUCH GAINS OR SAVINGS. "PRODUCTIVITY INCENTIVES PROGRAM AS PROVIDED IN THIS ACT SHALL BE BASED ON THE IMPLEMENTED PRODUCTIVITY IMPROVEMENT PROGRAM, AND WITHOUT

PREJUDICE TO ANY COMPANY POLICY AND PROGRAM, CONTRACT OR COLLECTIVE BARGAINING AGREEMENT PROVIDING FOR HIGHER PRODUCTIVITY INCENTIVES. "THE INCENTIVES AND BONUSES GRANTED BY VIRTUE OF THIS ACT SHALL NOT, BY ANY SALARY MEANS, BE CONSIDERED AS INCREASES."

Sec. 8. Section 7 of Republic Act No. 6971 shall be amended as follows:

"Sec. 7. Benefits and Tax Incentives) TAX DEDUCTIONS. - PRIVATE ESTABLISHMENTS MAY AVAIL OF THE FOLLOWING TAX DEDUCTIONS: "a) Subject to the provisions of Section 6 hereof, a business enterprise [which] THAT adopts a productivity incentives program El duly and mutually agreed upon by Eparties to the labor management committee,] THE PIC shall be granted a special deduction from gross income equivalent to fifty percent (50%) of the total productivity [bonuses] INCENTIVES given to employees under the PRODUCTIVITY INCENTIVES program over and above the total allowable ordinary and necessary business deductions, AS WELL AS ANY SPECIAL DEDUCTIONS, for said Ebonuses] INCENTIVES under [the National Internal Revenue Code, as amended PREVAILING LAWS, RULES, AND REGULATIONS; "b) Grants for [manpower] training and special studies given to rank-and-file employees pursuant to a PRODUCTIVITY IMPROVEMENT program prepared by the [abor management committeel PIC for the development of skills identified as necessary by the

appropriate government agencies shall also entitle the business enterprise to a special deduction from gross income equivalent to fifty percent (50%) of the total grants over and above the allowable ordinary and necessary business deductions for said grants under the National Internal Revenue Code, as amended. "BUSINESS ENTERPRISES SHALL SUBMIT A COPY OF ITS PRODUCTIVITY INCENTIVES PROGRAM AND OTHER REQUIRED DOCUMENTS TO THE BUREAU OF INTERNAL REVENUE (BIR) TO AVAIL OF THE CORRESPONDING BENEFITS AND TAX DEDUCTIONS PROVIDED IN THIS ACT; "c) Any strike or lockout arising from any violation of the productivity incentives program shall suspend the effectivity thereof pending settlement of such strike or lockout: Provided, That the business enterprise shall not be deemed to have forfeited any tax incentives accrued prior to the date of occurrence of such strike or lockout, and the workers shall not be required to reimburse the productivity [bonuses] INCENTIVES already granted to them under the productivity incentives program. Likewise, bonuses which have already accrued before the strike or lockout shall be paid the workers within six (6) months from their accrual. d) [Benuses] INCENTIVES provided for under the productivity incentives program shall be given to the employees not later than every six (6) months from the start of such program over and above existing [bonuses] INCENTIVES granted by the business enterprise and by law: Provided, That the said

[bonuses] INCENTIVES shall not be deemed as salary increases due the employees and workers. e) The special deductions from gross income provided for herein shall be allowed starting the next taxable year after the effectivity of this Act. "F) THE BIR SHALL ESTABLISH A SYSTEM FOR THE AVAILMENT OF TAX DEDUCTIONS. IT SHALL MAINTAIN AND FURNISH THE NATIONAL WAGES AND PRODUCTIVITY COMMISSION (NWPC) AN ANNUAL RECORD OF BUSINESS ENTERPRISES THAT AVAILED OF TAX DEDUCTIONS UNDER THIS ACT FOR PROGRAM MONITORING."

Sec. 9. Section 8 of Republic Act No. 6971 shall be amended as follows:

"Sec. 8. [Notification. A business enterprise which adopts a productivity incentives program shall submit copies of the same to the National Wages and Productivity Commission and to the Bureau of Internal Revenue for their information and record} PRODUCTIVITY ADVISORIES. - THE REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARDS (RTWPBS) SHALL ISSUE ADVISORIES ON PRODUCTIVITY IMPROVEMENT PROGRAMS AND PRODUCTIVITY INCENTIVE PROGRAMS, AND RELATIVE THERETO, SHALL PROVIDE TRAINING AND TECHNICAL ASSISTANCE TO ENTERPRISES."

Sec. 10. Section 9 of Republic Act No. 6971 shall be amended as follows:

"Sec. 9. {Disputes) ISSUES and Grievances. - Whenever [disputes) ISSUES, grievances, or other matters arise from the interpretation or implementation of the productivity incentives program, the flabor

management committee] PIC shall meet to resolve the faispute, and may seek the assistance of the National Conciliation and Mediation Board of the Department of Labor and Employment for such purpose. Any dispute which remains unresolved within twenty (20) days from the time of its submission to the labor management committee shall be submitted -for voluntary arbitration in line with the pertinent provisions of the Labor Code, as amended.] SAME WITHIN FIFTEEN (15) DAYS FROM RECEIPT OF A FORMAL COMPLAINT FROM ANY AGGRIEVED PARTY, SUBJECT TO THE FOLLOWING CONDITIONS: "[The productivity incentives program shall include the namefs) of the voluntary arbitrator or panel of voluntary arbitrators previously chosen and agreed upon by the labor management committee.] "A) PARTIES MAY AGREE ON WHETHER TO SUSPEND THE IMPLEMENTATION OF THE PRODUCTIVITY INCENTIVES PROGRAM PENDING THE RESOLUTION OF THE COMPLAINT; BUSINESS ENTERPRISES SHALL NOT BE "B) DEEMED TO HAVE FORFEITED ANY TAX DEDUCTIONS ACCRUED PRIOR TO THE SAID COMPLAINT AND THE EMPLOYEES AND WORKERS SHALL NOT BE REQUIRED TO REIMBURSE THE PRODUCTIVITY INCENTIVES ALREADY GRANTED; "c) LIKEWISE, PRODUCTIVITY INCENTIVES THAT HAVE ALREADY ACCRUED PRIOR TO THE SAID COMPLAINT SHALL BE PAID TO THE

ENTITLED EMPLOYEES AND WORKERS WITHIN SIX (6) MONTHS FROM THE DATE OF ACCRUAL OF THE SAME; AND, "D) ANY COMPLAINT WHICH REMAINED UNRESOLVED WITHIN THIRTY (30) DAYS FROM THE TIME OF RECEIPT OF COMPLAINT SHALL BE REFERRED BY THE PIC TO VOLUNTARY ARBITRATION PURSUANT TO PREVAILING LAWS, RULES, AND REGULATIONS." "E) THE BIR SHALL ESTABLISH A SYSTEM FOR THE AVAILMENT OF TAX DEDUCTIONS. IT SHALL MAINTAIN AND FURNISH THE NATIONAL WAGES AND PRODUCTIVITY COMMISSION (NWPC) AN ANNUAL RECORD OF BUSINESS ENTERPRISES THAT AVAILED OF TAX DEDUCTIONS UNDER THIS ACT FOR PROGRAM MONITORING."

Sec. 11. Section 10 of Republic Act No. 6971 shall be deleted.

Sec. 12. A new Section to be denominated as the new Section 10 shall be

inserted after Section 9 of Republic Act No. 6971. "SEC. 10. LOAN AVAILMENT - IN ADDITION TO THE EXISTING LOAN FACILITIES PROVIDED FOR BY OTHER LAWS, BANKING INSTITUTIONS MAY PROVIDE CONCESSIONAL FINANCIAL PACKAGES, LOAN OR CREDIT WINDOW PREFERABLY AT AN INTEREST RATE LOWER THAN THE PREVAILING MARKET RATE TO MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) THAT IMPLEMENT A PRODUCTIVITY IMPROVEMENT PROGRAM."

Sec. 13. New sections to be denominated as Sections 10-A, 10-B, 10-C, 10-D,

10-E, 10-F, 10-G, and 10-H shall be inserted after the new Section 10 of Republic Act No. 6971 and shall read as follows: "SEC. 10-A. SUBMISSION OF REPORTS. - ALL BUSINESS ENTERPRISES SHALL SUBMIT REPORTS ON THE CREATION OF THEIR PIC AND PRODUCTIVITY INCENTIVES PROGRAM TO THEIR RESPECTIVE RTWPBS FOR INFORMATION AND APPROPRIATE TECHNICAL ASSISTANCE, WHEN NEEDED." "SEC. 10-B. PRODUCTIVITY ADVOCACY. - TO ENABLE A CULTURE OF PRODUCTIVITY AS A WAY OF LIFE, PRODUCTIVITY CONCEPTS SHALL BE INCORPORATED IN THE BASIC AND HIGHER EDUCATION CURRICULA OF THE DEPARTMENT OF EDUCATION (DEPED) AND THE COMMISSION ON HIGHER EDUCATION (CHED), RESPECTIVELY, AND TRAINING CURRICULUM OF THE TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY (TESDA)." "SEC. 10-C. MONITORING OF COMPLIANCE. - THE SECRETARY OF LABOR AND EMPLOYMENT, UNDER ARTICLE 128 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE "LABOR CODE OF THE PHILIPPINES", SHALL ENSURE COMPLIANCE OF BUSINESS ENTERPRISES TO THE PROVISIONS OF THIS ACT." "SEC. 10-D. TECHNICAL ASSISTANCE. - ANY MEMBER OF THE PIC MAY REQUEST TECHNICAL ASSISTANCE FROM THE FOLLOWING AGENCIES

IN DEVELOPING AND IMPLEMENTING PRODUCTIVITY IMPROVEMENT PROGRAMS: "A) DEPARTMENT OF AGRICULTURE (DA), FOR ASSISTANCE ON MODERN FARM TECHNOLOGY, PARTICULARLY THE AGRICULTURAL TRAINING INSTITUTE (ATI) FOR AGRICULTURAL EXTENSION ON CURRENT TECHNOLOGIES AND SYSTEM; OF BUDGET AND "B) DEPARTMENT MANAGEMENT (DBM), PARTICULARLY THE SYSTEMS AND PRODUCTIVITY IMPROVEMENT BUREAU (SPIB), FOR TECHNICAL ASSISTANCE IN IMPLEMENTING THE GOVERNMENT QUALITY AND PRODUCTIVITY MANAGEMENT PROGRAM; "C) DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR, FOR THE PROMOTION OF THE USE OF GREEN TECHNOLOGY AND SCIENCE TO CREATE PRODUCTS AND SERVICES THAT ARE SUSTAINABLE AND ENVIRONMENT-FRIENDLY; "D) DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT), FOR UPSKILLING PROGRAMS IN COORDINATION WITH TESDA, CHED, AND DEPED; "E) DEPARTMENT OF TRADE AND INDUSTRY (DTI) - BUREAU OF SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (BSMED), FOR THE EXTENSION OF ASSISTANCE IN THE EFFECTIVE MARKETING OF PRODUCTS AND SERVICES OF MSMES; "F) DTI - COMPETITIVENESS BUREAU, FOR THE PROMOTION AND PROVISION OF COUNSELING

SERVICES ON BUSINESS OPERATIONS TO ENHANCE PRODUCTIVITY GROWTH AND COMPETITIVENESS OF COMPANIES AND ENTERPRISES; "G) DTI - INTELLECTUAL PROPERTY OFFICE OF THE PHILIPPINES (IPOPHIL), FOR TECHNOLOGY TRANSFER AND PATENT APPLICATIONS AND PROTECTION; OF SCIENCE AND "H) DEPARTMENT TECHNOLOGY (DOST), FOR THE PROVISION AND PROMOTION OF TECHNOLOGY ACQUISITION AND USE TO IMPROVE THE OPERATIONAL GROWTH OF COMPANIES AND ENTERPRISES; "I) DEPARTMENT OF TOURISM (DOT), FOR TOURISM QUALITY STANDARDS, ACCREDITATION, AND THE DEVELOPMENT OF THE TOURISM VALUE CHAIN; "J) DEVELOPMENT ACADEMY OF THE PHILIPPINES (DAP), FOR THE CONDUCT OF ENTERPRISE-APPROPRIATE TRAINING THAT WILL PROVIDE MSMES THE NECESSARY PRODUCTIVITY TOOLS AND ADVICE ON THE TECHNOLOGIES TO ENHANCE ENTERPRISE OPERATIONS AND ACHIEVE THEIR PRODUCTIVITY GOALS; "K) NWPC AND RTWPBS, FOR THE PROVISION OF TRAINING AND TECHNICAL ASSISTANCE ON PRODUCTIVITY IMPROVEMENT AND PERFORMANCE INCENTIVES SCHEME TO COMPANIES AND ENTERPRISES;

"L) TESDA, FOR THE PROVISION AND PROMOTION OF SKILLS TRAINING, ASSESSMENT, AND CERTIFICATION; "M) UNIVERSITY OF THE PHILIPPINES (UP), PARTICULARLY THE INSTITUTE FOR SMALL SCALE INDUSTRIES (UP ISSI) AND SCHOOL OF LABOR AND INDUSTRIAL RELATIONS' (UP SOLAIR) CENTER INDUSTRY PRODUCTIVITY AND COMPETITIVENESS (CIPC), FOR RESEARCH, TRAINING AND TECHNICAL SUPPORT TO MSMES IN PLANNING, AND ASSESSING IMPLEMENTING, PRODUCTIVITY IMPROVEMENT PROGRAMS; AND, "N) THE COOPERATIVE DEVELOPMENT AUTHORITY (CDA), FOR THE PROMOTION AND INTEGRATION OF PRODUCTIVITY IMPROVEMENT AND GAINSHARING SCHEMES AMONG COOPERATIVES. "IN ADDITION, ANY MEMBER OF THE PIC MAY ALSO SEEK ASSISTANCE FROM OTHER GOVERNMENT AGENCIES OR PRIVATE INSTITUTIONS OTHER THAN THOSE CITED ABOVE WHEN DEVELOPING AND IMPLEMENTING THEIR PRODUCTIVITY IMPROVEMENT PROGRAM. "SEC. 10-E. RECOGNITION OF PRODUCTIVITY EXPERTS, - THE NWPC SHALL ESTABLISH A SYSTEM TO RECOGNIZE PRODUCTIVITY EXPERTS WHO WILL PROVIDE PRODUCTIVITY- RELATED SERVICES TO ENTERPRISES. A MINIMAL FEE FOR THE RECOGNITION OF

PRODUCTIVITY EXPERTS WILL BE SET AND COLLECTED, AND MAY BE ADJUSTED AS NECESSARY SUBJECT TO THE IMPLEMENTING RULES AND REGULATIONS (IRR) TO BE ISSUED HEREAFTER. "SEC. 10-F. ASSISTANCE TO MICRO ENTERPRISES. - MICRO ENTERPRISES MAY AVAIL OF FREE TECHNICAL ASSISTANCE FROM THE POOL OF NWPC-RECOGNIZED PRODUCTIVITY EXPERTS, UPON QUALIFICATION WITH THE CRITERIA TO BE DEVELOPED BY NWPC AND TO BE INCLUDED IN THE IRR WHICH WILL HEREAFTER BE ISSUED. THE PRODUCTIVITY EXPERTS TAPPED TO PROVIDE FREE TECHNICAL ASSISTANCE TO MICRO ENTERPRISES ARE ENTITLED TO RECEIVE HONORARIA TO BE SOURCED FROM THE APPROPRIATIONS PROVIDED UNDER

SECTION 12-B OF THIS ACT. THE AMOUNT OF

HONORARIA SHALL BE PURSUANT TO DBM'S RULES AND REGULATIONS. "MICRO ENTERPRISES WHICH MAY NOT QUALIFY FOR FREE TECHNICAL ASSISTANCE SHALL PAY THE PRODUCTIVITY EXPERTS RENDERING THE SERVICE AN AMOUNT EQUIVALENT TO THE HONORARIA SET BY THE DBM'S RULES AND REGULATIONS. "THE DAP, AS THE NATIONAL PRODUCTIVITY ORGANIZATION, SHALL REGULARLY ENHANCE THE CAPABILITIES OF THE NWPC-RECOGNIZED PRODUCTIVITY EXPERTS ON ADVANCED AND EMERGING PRODUCTIVITY TECHNOLOGIES AND

SYSTEMS AT NO COST, INCLUDING ACCESS TO INTERNATIONAL TRAINING PROGRAMS." "SEC. 10-G. PERIODIC REVIEW THROUGH IMPACT ASSESSMENT. - THE EFFECTIVENESS OF THIS ACT SHALL BE REVIEWED AND EVALUATED .6 BY THE DOLE EVERY THREE (3) YEARS FROM ITS EFFECTIVITY DATE THROUGH IMPACT ASSESSMENT ON THE SUBJECT BUSINESS ENTERPRISES' PRODUCTIVITY AND THE PRODUCTIVITY IMPROVEMENT PROGRAM'S PROGRESS. "ALL GOVERNMENT AGENCIES THAT PROVIDE TECHNICAL ASSISTANCE TO BUSINESS ENTERPRISES IN SECTIONS 7 AND 10-D SHALL ALSO SUBMIT THEIR RESPECTIVE ANNUAL REPORTS TO THE DOLE ON THE AVAILMENT OF ASSISTANCE BY THE SUBJECT BUSINESS ENTERPRISES. "THE DOLE SHALL CONSOLIDATE AND SUBMIT THE AFORECITED REPORTS TO CONGRESS EVERY THREE (3) YEARS." "SEC. 10-H. STRENGTHENING WORKPLACE BIPARTITE MECHANISM. - THE DOLE SHALL FORMULATE A PROGRAM, IN CONSULTATION WITH EMPLOYER AND LABOR GROUPS, TO STRENGTHEN THE BIPARTITE MECHANISM, ESPECIALLY IN THE AREA OF BARGAINING FOCUSED ON PRODUCTIVITY."

Sec. 14. Section 11 of Republic Act No. 6971 is hereby amended to read as

follows: "Sec. 11. Penalty. - Any person who shall make any fraudulent claim under this Act, regardless of whether

or not a tax [benefit] DEDUCTION has been granted, shall upon conviction be punished with imprisonment of not less than six (6) months but not more than one (1) year or a fine of not less than [twe] TWENTY thousand pesos [(2,000.00)] (P20,000.00) but not more than [six] FIFTY thousand pesos E(P6,000.00)] (P50,000.00), or both, at the discretion of the Court, without prejudice to prosecution for any other acts punishable under existing laws. "In THE case of partnerships or corporations, the penalty shall be imposed upon the officers) or employee(s), AND OTHER PERSONS RESPONSIBLE who knowingly approved, authorized or ratified the filing of the fraudulent claim t, and other persons responsible therefor]."

Sec. 15. Section 12 of Republic Act No. 6971 is hereby amended to read as

follows: "Sec. 12. Non-Diminution of Benefits. - Nothing in this Act shall be construed to diminish or reduce any benefits and other privileges enjoyed by Ethel workers under existing laws, decrees, executive orders, company policy or practice, or any agreement or contract between the employer and employees."

Sec. 15. New sections to be denominated as Sections 12-A, 12-B and 12-C

are inserted after Section 12 of Republic Act No. 6971 which shall read as follows: "SEC. 12-A. PUBLIC SECTOR. - THE CIVIL SERVICE COMMISSION (CSC) AND THE DBM MAY ESTABLISH A SIMILAR SYSTEM IN THE PUBLIC SECTOR. "SEC. 12-B. APPROPRIATIONS. - THE AMOUNT NECESSARY FOR THE IMMEDIATE AND EFFECTIVE IMPLEMENTATION OF THIS ACT

SHALL BE CHARGED AGAINST AVAILABLE FUNDS OF THE DOLE. THEREAFTER, SUCH SUMS AS MAY BE NECESSARY FOR THE IMPLEMENTATION OF THIS ACT SHALL BE INCLUDED IN THE ANNUAL APPROPRIATES OF THE DOLE. "SEC. 12-C. IMPLEMENTING RULES AND REGULATIONS. - WITHIN ONE HUNDRED EIGHTY (180) DAYS FROM THE EFFECTIVITY OF THIS ACT, THE DOLE, IN CONSULTATION WITH THE OTHER GOVERNMENT AGENCIES AND CONCERNED STAKEHOLDERS, SHALL ISSUE THE RULES AND REGULATIONS NECESSARY TO EFFECTIVELY IMPLEMENT THE PROVISIONS OF THIS ACT."

Sec. 16. Separability Clause. - Should any provision of this Act be declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 17. Repealing Clause. - All laws, presidential decrees, executive orders,

and proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 18. Effectivity Clause. - This Act shall take effect fifteen (15) days after

its publication in the Official Gazette or in a newspaper of general circulation. Approved,