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 Manpower 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 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.

By the President:

(SGD.) JOAQUIN T. VENUS, JR.
Deputy Presidential Executive Assistant