Labor Control Over Sugar Industry Amelioration

The decree relies on Presidential action that directed the Sugar Quota Board to collect a Stabilization Fee of P1.00 for every picul of sugar produced in lieu of an earlier P3.00 charge for an amelioration fund.
The decree ties implementation to Philippine Sugar Order No. 3 (series 1970-71) dated December 29, 1970, which set the Stabilization Fee at P1.00 per picul for all sugar produced.
The decree recognizes later amendments under Philippine Sugar Order No. 4 (series 1970-71) dated January 12, 1971 and Philippine Sugar Order No. 31 (series 1971-72) dated December 23, 1971.
The decree references the collection structure in those sugar orders: 90% for bonuses to sugar workers and/or disposal by employer–labor union agreement, and 10% as a working fund of the Sugar Industry Foundation, Inc.

The Secretary of Labor must exercise general supervision and control over the social amelioration program of the sugar industry.
The Secretary of Labor must issue rules and regulations governing the proper and equitable implementation of the program.
The decree anchors that regulatory authority on the Philippine Sugar Orders of the Sugar Quota Board.
The decree is aimed at ensuring that sugar farm and mill workers receive their legitimate share in social amelioration benefits.

The decree makes it actionable for employers to ensure payment of their share of the stabilization fee corresponding to sugar production.
The decree also covers refusal to pay the legitimate claim of any worker covered by the decree.
The penalty provision applies when the employer or liable party wilfully refuses upon demand.
The worker’s entitlement and the scope of “legitimate claim” are determined by the Secretary of Labor.

A person who wilfully refuses upon demand to pay the person’s share of the stabilization fee or a worker’s legitimate claim determined by the Secretary of Labor is punishable by a fine of not less than P1,000.00 nor more than P10,000.00.
The same refusal is also punishable by imprisonment of not less than one (1) year for more than five (5) years, or by both fine and imprisonment at the discretion of the court or military tribunal.
If the offender is a corporation, firm, partnership, or association, the penalty is imposed upon the guilty officer or officers.
If the guilty officer or officers are aliens, deportation is imposed in addition to the prescribed penalty and is carried out without further proceedings on the part of the Commission on Immigration and Deportation.

Presidential Decree No. 621 takes effect beginning the crop year 1974–1975.
The decree’s implementation authority becomes effective for the crop year 1974–1975, aligning labor supervision with the social amelioration program in the sugar industry.