Planters Association Of Southern Negros Inc v. Ponferrada

PURISIMA, J.:

Nowhere is the economic disparity between labor and capital so evident than in the sugar industry. While it is the lowly farm worker who must toil in the field under the harshness of conditions, it is the planter who gets to enjoy more the fruits of production. While the planter lives in the comfort of his palatial home, the living condition of the sugar farm worker more often than not defies the basic tenets of human dignity.1 At bar is a Petition for Review on Certiorari under Rule 45 of the Revised Rules of Court seeking to review and set aside the August 8, 1993 Decision2 and January 21, 1994 Resolution3 of the Regional Trial Court of Negros Occidental, Branch 42,4 Bacolod City, in Civil Case No. 6894 for Declaratory Relief.

The antecedent facts that matter can be culled as follows: Prior to the passage of Republic Act No. 6982, entitled An Act Strengthening the Sugar Amelioration Program in the Sugar Industry, Providing the Mechanics for its Implementation, and for other Purposes, there were two principal laws providing additional financial benefits to sugar farm workers, namely: Republic Act No. 809 and Presidential Decree No. 621.1âwphi1.nêt Republic Act No. 8095 (implementable in milling districts with an annual gross production of 150,000 piculs or more), institutionalized production sharing scheme, in the absence of any private agreement between the planters and farm workers, depending on the mill's total production for each immediately preceding crop year; and specifically providing that any increase in the planters' share shall be divided in the following manner: 40% of the increase shall accrue to the planter and 60% to the farm workers.6 On the other hand, Presidential Decree No. 621,7 as amended, charged a lien of P2.00 per picul on all sugar produced, to be pooled into a fund for subsequent distribution as bonuses to sugar workers.8 Thus, before R.A. No. 6982, there were two sets of beneficiaries under the social amelioration program in the sugar industry: 1) Beneficiaries under R.A. No. 809 and P.D. No. 621; and 2) Beneficiaries under P.D. No. 621 only.

(In milling districts where the annual gross production is less than 150,000 piculs) On May 24, 1991, Republic Act No. 6982 took effect. It imposed a lien of P5.00 per picul on the gross production of sugar beginning sugar crop year 1991-1992, with an automatic additional lien of P1.00 for every two (2) years for the succeeding ten (10) years from the effectivity of the Act subject to the discretion of the Secretary of Labor and Employment and upon recommendation of the Sugar Tripartite Council.9 Directly addressing the effect of the new P5.00 per picul lien vis-a-vis the two previously existing laws, Section 12 of R.A. No. 6982, provides: Sec. 12. Benefits under Republic Act No. 809 and P.D. 621, as Amended.

- All liens and other forms of production sharing in favor of the workers in the sugar industry under Republic Act No. 809 and Presidential Decree No. 621, as amended, are hereby substituted by the benefits under this Act: Provided, That cases arising from such laws pending in the courts or administrative bodies at the time of the effectivity of this Act shall not be affected thereby. In connection therewith, Section 14 of the same Act further states: Sec. 14.

Non-Diminution of Benefits. - The provisions of Section 12 hereof notwithstanding, nothing in this Act shall be construed to reduce any benefit, interest, right or participation enjoyed by the workers at the time of the enactment of this Act, and no amount received by any beneficiary under this Act shall be subject to any form of taxation. Private respondent Binalbagan-Isabela Sugar Company (BISCOM) is engaged in the business of, among others, milling raw sugar cane of various sugar plantations in their milling district.

For the crop year 1991-1992, the sugar farm workers' share in BISCOM, under R.A. No. 809 amounted to P30,590,086.92.10 Under P.D. No. 621, the workers' benefit for the same crop year amounted to P2,233,285.26, computed as follows: Gross production of BISCOM (In Piculs) 1,595,184.46 Less: 30% BISCOM Share 478,555.33 70% Planter Share