EXECUTIVE ORDER NO. 732 - PROVIDING MORE FINANCIAL INCENTIVES TO FIRMS AND OUT-OF-SCHOOL YOUTH PARTICIPATING IN THE KB-NMYC BATARISAN IN-PLANT TRAINING PROGRAM

WHEREAS, human resources development, especially of the youth segment of the population, is an explicit policy of the New Republic;

WHEREAS, executive and legislative edicts have been promulgated in support of this policy, including Letter of Instruction No. 460, which mandate the National Letter power and Youth Council and the Kabataang Barangay to implement the Batarisan In-Plant Training Program in cooperation with the private sector;

WHEREAS, the NMYC is mandated by Presidential Decree No. 442 to, among other things, train the out-of-school youth in employable skills;

WHEREAS, there are to date since 1978 more than 15,000 trainees who have benefited from the Batarisan Program;  

WHEREAS, the NMYC is seeking to $50M loan from the World Bank to further promote the training and development of the country’s human resources;

WHEREAS, there is a need for innovation in the implementation of the Batarisan Program in order that it would involve more firms and more out-of-school youth trainees;

NOW, THEREFORE, I, FERDINAND E. MARCOS President of the of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and ordain:

Section 1. Cost Sharing Scheme. — An expanded cost-sharing scheme shall be adopted by the Batarisan In-Plant Training Program.

Sec. 2. Details of Cost-Sharing Scheme. — The details of the cost-sharing scheme shall be the following:

1. The government through KB-NMYC in the initial year of the program shall shoulder 100% of total training costs. Such costs shall consist of tuition fees and stipends.

2. Knowing that industry is the direct beneficiary of improved worker performance through skills training, they shall share in the total costs of training.

3. The government shall finance 100% of stipend costs in the first year of the project operation and 50% in the second year. The subsidy shall be reduced during the project life as the employers assume from the government an increasing share of the stipend cost until ultimately stipends financed by employers shall be 100%.

4. The government, through KB-NMYC, shall bear the full cost of tuition fees during the training which shall be subsequently reimbursed for trainees who pass the specified trade test.

5. The table below shows the proposed financial parameter within which training shall be organized.

Maximum Government Contribution 1982 1983 1984 1985
Tuition Fees     100% 100% 100% 100%
Stipends 100%   50%    0%  0%
Minimum Employer Contribution
Tuition Fees    0%     0%   0%    0%
Stipends    0%   50%    100% 100%

Therefore, the average contribution with
respect to training costs will be the
following:

Government 70%
Industry 30%

Sec. 3. Retraining of Workers. — Using the example of the Batarisan In-Plant Training Program, the NMYC is hereby mandated to develop a scheme for the re-training and updating of skilled and supervisory workers.  

Sec. 4. Duration of the Project. — The implementation of the project shall be from the period covering 1982 to 1985.

Sec. 5. Funding. — The government shall provide financial assistance through the RP-WB Vocational Training Project which is a loan provided to NMYC.

Sec. 6. Separability. — If any provision of this Executive Order is held invalid, the other provisions not affected thereby shall continue in operation.  

Sec. 7. Effectivity. — This Order shall take effect immediately.

Done in the City of Manila, this 21st day of September, in the year of Our Lord, nineteen hundred and eighty-one.

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Since 19.07.98.