Section 7May 1, 1991, Sec./Art. 7

Lien; Distribution; Collection and Remittance. –

a) Effective on sugar crop year 1991-1992 a lien of Five pesos (P5.00) per picul of sugar shall be imposed on the gross production of sugar to primarily augment the income of sugar workers, and to finance social and economic programs to improve their livelihood and well-being: provided, that there shall be an automatic additional lien of One peso (P1.00) for every two (2) years for the succeeding ten (10) years from the effectivity of this Act: provided, further, that the Secretary of Labor and Employment may, upon the recommendation of the Sugar Tripartite Council, suspend or reduce the amount of the automatic additional lien herein authorized whenever circumstances occur adversely affecting or causing undue increases in the cost of producing sugar, taking into consideration the declared policy of this Act.

The amounts herein imposed shall be borne by the sugar planters and millers in proportion to their corresponding milling share and said amounts shall constitute a lien on their sugar quedans and/or warehouse receipts.

b) Eighty percent (80%) of the lien, including any and all incomes or interests derived therefrom, shall be distributed as cash bonus to each worker in the sugar farm or mill based on the proportion of work rendered by him. The cash bonus share of the worker shall be collected by the sugar mills and released to planters associations in the case of affiliated planters, or directly to unaffiliated planters, for distribution to their respective workers. The cash bonus share of the mill workers shall be held in trust by the mills for distribution to the workers.

The remaining twenty percent (20%) of the lien shall be collected by the sugar mills and to be remitted to the DOLE and utilized pursuant to Section 10 hereof.

c) The collection of the lien shall be made upon the withdrawal or release of the sugar from the mill warehouse but in no case beyond one hundred eighty (180) days from the date of the issuance of the corresponding sugar quedans or warehouse receipts: provided, that, after said one hundred eighty (180) days, the miller shall advance whatever amount is necessary to pay such lien and charge the holder of said sugar quedans or warehouse receipts the amount so paid and such reasonable rate of interest as may be prevailing in the banking community.

d) It shall be the duty of every sugar mill to remit the lien collected within one (1) month from the date of collection thereof; otherwise, a penalty of ten percent (10%) per month on the unremitted collection shall be imposed upon the violator.

The cash bonus portion of the lien shall, in turn, be distributed to sugar workers concerned within one (1) month from the date of remittance; otherwise, a penalty of ten percent (10%) per month on the undistributed cash bonus shall be imposed upon the violator.

All penalties for non-remittance of lien collected shall accrue to the social and economic programs for the sugar workers. Such penalties for non-distribution of the cash bonus shall accrue to the sugar workers concerned.