AGREEMENT BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE UNITED STATES OF AMERICA ON EMPLOYEES’ COMPENSATION AND MEDICAL CARE PROGRAMS

With reference to the American Embassy’s Diplomatic note No.
560 dated October 9, 1979, concerning a United States proposal that the
Government of the United States participate in the Philippine Medical
Care Program and the Employees’ Compensation Program on behalf of
Philippine Nationals employed by the U.S. Forces in the Philippines, and
in compliance with the RP-US Joint Labor Committee Agreed Minutes dated
April 11, 1979, the Government of the Republic of the Philippines and
the Government of the United States agree to the following provisions:

1. The Philippine Medical Care Program and the Employees’
Compensation Program shall be extended to all Philippine national
direct-hire employees of the U.S. Forces in the Philippines except those
employees who are not eligible for coverage because they are not
members of the Philippine Social Security System. Until such time as
appropriate Philippine amendatory legislation becomes effective, these
employees shall, with regard to Employees’ Compensation, continue to be
covered under the United States Federal Employees’ Compensation Act,
and, with respect to Medical Care, they will be provided comparable
benefits through private insurance, with premiums shared by the employer
and the employee.

2. All provisions of the above cited programs shall be applied to the
U.S. Forces in a manner identical with their application to all other
employers covered by the laws.

3. The Philippine national employees of the U.S. Forces shall have the
same benefits and protection and be subject to the same obligations and
penalties under the programs as all other employees covered by the two
programs.

4. This agreement will replace coverage for Philippine national
employees of the U.S. Forces granted by 5 U.S. Code, Section 8137 (the
Federal Employees’ Compensation Act). Claims for injuries and
occupational diseases contracted prior to the effective date of the
agreement may continue to be filed under the Federal Employees’
Compensation Act in accordance with its provisions. Claims regarding
exposures subsequent to the effective date of this agreement shall be
filed under the Philippine Employees’ Compensation Program.

5. In order to eliminate reductions in various benefits incurred as a
result of the transfer of Philippine employees from coverage under the
U.S. Federal Employees’ Compensation Act to the Philippine Employees’
Compensation Program, and consistent with para 2 of the Base Labor
Agreement providing for uniform wages, working conditions and benefits
for employees regardless of sources of funds used, the U.S. Forces agree
to provide, subject to the authorization and appropriation of funds by
the United States Congress, certain supplemental benefits outlined in
Annex A, which will be extended uniformly to both appropriated fund
employees formerly covered by the Federal Employees’ Compensation Act
and also to non-appropriated fund employees of the U.S. Forces. These
supplemental benefits will be reviewed whenever benefits under the
Philippine Employees’ Compensation Program are increased and will be
adjusted so that supplemental payments, when combined with payments
under the Philippine Employees’ Compensation Program, do not exceed the
scheduled benefits provided under the Federal Employees’ Compensation
Act existing at the time of the effective date of this agreement.
Supplemental benefits shall be granted to appropriated and
non-appropriated fund employees only upon a final finding made under the
Philippine Employees’ Compensation Program that the subject injury or
death is compensable under the program.

6. Compensation paid under or pursuant to this Agreement is in lieu of
all other compensation from the United States Government for the same
injury or death and is exclusive satisfaction of all liability of the
United States Government in respect of the particular injury or death.

7. In addition to Medical Care coverage, the U.S. Forces will provide a
new, improved supplemental private group hospitalization insurance.
Benefits are established in accordance with prevailing practices in the
Philippines as determined by periodic technical wage surveys conducted
by the U.S. Armed Forces. Information on supplemental benefits under the
group hospitalization program will be provided to employees.

8. It is agreed that any dispute, disagreement, claim or grievance
Initiated by the Government of the Republic of the Philippines or the
United States Government and arising out of or relating to the
interpretation or administration of this agreement shall be referred to
the RP-US Joint Labor Committee In accordance with Article III (5) of
the Base Labor Agreement of 1968. Disputes, disagreements, claims or
grievances not settled in the Committee shall be resolved through
diplomatic channels in lieu of resort to the courts or tribunals of
either government. A dispute, disagreement, claim or grievance
Initiated by a Philippine employee of the U.S. Forces shall be settled
in accordance with procedures established under or In accordance with
applicable Philippine law.

9. Nothing in this agreement shall imply any waiver by either the
Government of the Republic of the Philippines or the United States
Government of its immunities under international law.

10. Provisions of this agreement shall become effective upon signing.

11. In witness thereof, the undersigned, being duly authorized by their
respective government, have signed this agreement.

Done at Manila, in duplicate, this tenth day of March, 1982.

FOR THE GOVERNMENT OF THE	FOR THE GOVERNMENT OF THE
REPUBLIC OF THE PHILIPPINES:	UNITED STATES OF AMERICA:
(Sgd.)BLAS F. OPLE	(Sgd.)JAMES D. ROSENTHAL
Minister of Labor and Employment	Charge d’Affaires, a..i.
MEMBERS OF THE	MEMBERS OF THE
PHILIPPINES NEGOTIATING TEAM :	U.S. NEGOTIATING TEAM :
(Sgd.)Carmelo C. Noriel, Chairman	(Sgd.)Leonard Sandman, Chairman
Deputy Minister, Ministry of	American Embassy
Labor and Employment
	(Deceased October 18, 1981)
(Sgd.)Ruben de Ocampo	Charles W. Harner
Member, Batasang Pambansa	CINCPACREPPHIL
(Sgd.)Jose C. Denoga	(Sgd.)Thomas O’Brien
Philippine Medical Care Commission	U.S. Air Force
(Sgd.)Fabiana Patag
Social Security Commission
(Sgd.)Eleanor Cayapas
Employees’ Compensation Commission