GUIDELINES FOR THE HIRING OF EMPLOYEES BY LOCATORS/INVESTORS AND OTHER CONTRACTORS THROUGH THE CAGAYAN ECONOMIC ZONE AUTHORITY

Pursuant to the provisions of the Declared Policy of Republic Act
7922, otherwise known as the “Cagayan Special Economic Zone Act of 1995”
the following guidelines are hereby prescribed for the guidance and
compliance of all locators, contractors, investors and other concerned
in hiring of employees within the Zone.

ARTICLE I – PRELIMINARY PROVISIONS

SECTION 1.      Title . These guidelines shall be known as CEZA ADMINISTRATIVE ORDER NO. 001 — 2000.

SECTION 2.      Statement of Policies .
Pursuant to its mandate, the Authority shall actively encourage,
promote, induce and accelerate sound and balanced industrial, economic
and social development of the Cagayan Special Economic Zone and Freeport
(CSEZFP) in order to provide jobs to the people of Cagayan Valley
especially in Santa Ana, increase their productivity and their
individual and family income, and thereby improve the level and quality
of their living condition.

These guidelines shall layout the policies relative to the hiring of
employees by investors/ locators and contractors and efficiently
promote sound work and social values, competitive skills and updated
knowledge.

To this end the Authority shall give priority to the residents of
Santa Ana, most especially the volunteers and their immediate relatives
in the hiring of employees by investors/locators/contractors or
subcontractors in the Zone through the CEZA.

SECTION 3.      Applicability . These
guidelines shall apply to all CSEZFP Registered Enterprises and other
service contractors and subcontractors doing business with CSEZFP
Enterprises, such as but not limited to construction and engineering
contractors and arrastre and stevedoring firms.

SECTION 4.      Definition of Terms . For the purpose of this Administrative Order, the terms used herein shall mean as follows:

a. “RA 7922” shall refer to Republic Act No. 7922, otherwise known as the “Cagayan Special Economic Zone Act of 1995”.

b. “CEZA” shall refer to the Cagayan Economic Zone Authority, a government corporate body established pursuant to RA 7922.

c. “CSEZFP” shall refer to the Cagayan Special Economic Zone and
Freeport defined in Section 3 of Republic Act 7922 as a separate customs
territory covering the entire area embraced by the Municipality of
Santa Ana and the islands of Fuga, Barit and Mabbag in the Municipality
of Aparri, all in the Province of Cagayan.

d. “Investor/Locator” shall refer to enterprises with Provisional
Certificate of Registration or Certificate of Registration as CSEZFP
Enterprise.

e. “Employees” shall refer to persons who shall be hired to perform
services to investors/locators/contractors or subcontractors for a fixed
fee, and shall cover not only permanent/regular employees but
contractual and daily paid workers as well.

f. “LEPO” shall refer to the designated Labor, Employment and Productivity Office which shall implement these guidelines.

ARTICLE II – PROCEDURAL GUIDELINES

SECTION 5.      Request for Recruitment Assistance To Fill-Up Job Vacancies
. An investor/locator/contractor shall address a formal request to CEZA
for a public announcement to be advised for certain position/s with
corresponding qualification requirements to guide applicants. Pro-forma
of recruitment Assistance Form is attached as Annex “A” of these
guidelines.

CEZA must be prepared to immediately address the manpower
requirements of the investors, locators and other contractors in order
to hasten smooth commencement and operation of enterprises. To carry out
this responsibility, the CEZA shall do the following:

a. to determine and maintain an inventory of skills available and
profile of the manpower available in Santa Ana and nearby towns;

b. to determine manpower needs of incoming CEZA investors/locators,
which can be accomplished through direct coordination with the concerned
investor/locator; and

c. to conduct a manpower need survey among registered CSEZFP enterprises on a quarterly basis.

SECTION 6.      Job Vacancy Announcement.
The request for job vacancy announcement as received by CEZA shall then
be advertised in the bulletin board at the CEZA office and other
conspicuous places such as Municipal Hall, Barangay Hall, schools and/or
by means of local radio and cable TV with predetermined announcements
closing date.

SECTION 7.      Submission, Acceptance and Screening of Applications.
Applications shall be submitted to the designated labor, employment and
productivity center of CEZA. Applications received for the vacancy
shall be thoroughly screened by the Authority. Preference shall be given
to the volunteers and their relatives up to fourth degree of
consanguinity and to Zone residents who applied for the position
opening. However, qualified non-residents are allowed to file their
applications and the Authority shall endorse such applications to
investors if there are no qualified freeport residents.

SECTION 8.      Investigation/Checking of Prospective Applicants
. Investigation/ checking shall be strictly conducted by the Authority
to ensure that the applicants passed the following basic qualifications:

a. basic qualification requirements as set by the investor/locator;

b. applicant is a volunteer, a relative of the volunteer up to the
fourth degree of consanguinity or a bonafide resident of Santa Ana. If
there is no one qualified from the mentioned groups, a qualified
non-resident shall be considered; and

c. applicant is physically and mentally fit to work as a freeport employee.

CEZA shall coordinate with the concerned local officials and
leaders, preferably the barangay captains and CEZA barangay volunteer
leaders or officers to confirm that such applicants are bonafide
residents of the area, volunteers or relatives of the volunteer. Tie-up
with other government agencies such as Department of Labor and
Employment (DOLE) and Technical Education and Skills Development
Authority (TESDA) shall be done to properly check the mental and
physical fitness of applicant to work as freeport employee.

SECTION 9.      Issuance/Release of Roster of
Pre-qualified Applicants To Concerned and Notification of Applicants for
Interview/Testing. A list of qualified applicants based
on the minimum requirements set, recommended by CEZA for consideration
by the requester/investor, together with the documents submitted by the
applicants, shall be released to the requester. The recommendees shall
be scheduled for interview by the requester/investor after proper
notification is made by the Authority at the instance of the requesting
investor.

SECTION 10.    Interviews and Testing of Applicants
. Interviews, testing and selection of qualified personnel shall be the
sole discretion of the investor/locator. CEZA, however, must ensure
that the applicants pass the basic qualification requirements as set by
the investor/locator, such as educational attainment, work experience,
age, gender requirement, etc.

SECTION 11.    Orientation and Issuance of Identification Cards (ID) Upon Assumption of Duty
. The name/s of chosen applicants coming out of the interview and
testing conducted by the requesting investor shall be forwarded to CEZA.
Chosen applicants shall be oriented on vision of CEZA. After the
orientation, the applicants shall have their identification cards
processed by CEZA upon assumption of duty for the requesting investor at
a specified date.

SECTION 12.    Employee Tracking System .
All investors/locators are advised to provide the Authority with a
monthly report of employees’ status, which shall include the list of
hired employees and employees deleted from their currently on-board
personnel to track down exact number of employees of a particular
enterprise in the Zone at any given time.

CEZA shall also request investors/locators to submit a quarterly
report containing an assessment of employee’s performance. This will
enable CEZA to keep a record of each employee’s performance for tracking
of blacklisted employees and training needs analysis.

SECTION 13.    Compliance with the Philippine Labor Code
. CEZA shall monitor enterprises’/contractors’ compliance with the
labor standards of the Philippines to protect the employees of the Zone.
Attached as Annex “B” (available at ONAR, upon request) are the Salient
Provisions of the Philippine Labor Code. CEZA shall also formulate and
implement a comprehensive program to promote the welfare of the employee
and provide various services for employees.

SECTION 14.    Training and Productivity Improvement
. CEZA shall ensure that present and future employment requirements and
standards of investors are met. The labor, employment and productivity
center, in collaboration with the designated training and livelihood
center of CEZA shall design and implement training and productivity
improvement for employees and potential manpower for investors or CEZA
may conduct joint training program with the investor.

SECTION 15.    Labor, Employment and Productivity Office. CEZA shall form a Labor, Employment and Productivity Office (LEPO) which shall implement and oversee these guidelines.

ARTICLE III – EFFECTIVITY

SECTION 16.    Effectivity . This
Administrative Order shall take effect on 8 January 2000 and shall be
published in at least one (1) newspaper of general circulation upon
signing.

(SGD.) RODOLFO O. REYES
Administrator and Chief Executive Officer