
Supporters of striking Hacienda Luisita farmworkers staged a rally last Nov.6 in Mendiola to press for the urgent and unconditional free distribution of the 6,453 hectare Cojuangco estate acquired through deceptive, coercive and brutal means by the Cojuangco clan. (Photo by KMP)
The Continuing Saga of the farmworkers of Hacienda Luisita
by Atty. Jobert Ilarde-Pahilga, executive director Sentro Para sa Tunay na Repormang Agraryo (Sentra), and campaign officer of National Union of Peoples’ Lawyers (NUPL)
THE ACQUISITION OF THE HACIENDA BY THE COJUANCOS
In 1957, Jose Cojuanco Sr., bought majority shares of the Central Azucarera de Tarlac (CAT), including the 6,453-hectare Hacienda Luisita from the Spanish company Compania General de Tabacos de Filipinas (Tabacalera) thrug a loan from the Central Bank. The CAT and hacienda are transferred to Cojuangco’s Tarlac Development Corporation (TADECO), an agricultural corporation.
MARCOS FILED A CASE
On May 7, 1980, the Marcos government filed a case against TADECO before the RTC of Manila for specific performance to compel defendants TADECO, and the heirs of the late Jose Cojuangco, Sr. to turn over “Hacienda Luisita” to the Ministry of Agrarian Reform for the purpose of subdivision and sale at cost to “small farmers” or “tenants”.
On December 2, 1985, the Manila RTC rendered a decision that orders the Cojuangcos to transfer control of Hacienda Luisita to the Ministry of Agrarian Reform, which will distribute the land to small farmers after compensating the landowners P3.988 million.
The Cojuangcos elevated the case to the Court of Appeals which was docketed as CA G.R. 08634. March 17, 1988, the Solicitor General, CB governor and the Department of Agrarian Reform (DAR) filed a motion to dismiss the civil case against the Cojuangcos pending before the Court of Appeals on the ground that Hacienda Luisita would be covered by agrarian reform. Thus, on May 18, 1988, the Court dismissed the case against the Cojuangcos.
THE STOCK DISTRIBUTION PLAN and MOA
On May 9, 1989, the landowners, along with then DAR Secretary Philip Juico, Tarlac governor and the mayors of Tarlac City, Concepcion, and La Paz, the three municipalities covering the hacienda, held referendum among Luisita farm workers to present the SDO. Thereafter, Juico, Tadeco and HLI signed Memorandum of Agreement on the SDO.
In the MOA of May 11, 1989, HLI was designated as the SECOND PARTY to which the TADECO has transferred and conveyed the agricultural portions of Hacienda Luisita and other farm-related properties in exchange for shares of stock of the farm workers. The agricultural lands in Hacienda Luisita which was covered by the MOA consisted of 4,915.75 hectares with an appraised value of P196, 630 million or approximately P40, 000 per hectare.
Based on the MOA the farmworkers supposedly owned 33.296% of the outstanding capital stock of the HLI, which was P355, 531,462 or 355,531,462 shares at 1 peso per share before May 10, 1989. In the stock distribution plan 33.296% of capital stock or P118, 391,976.85 or 118,391,976.85 shares will be distributed to farmworker beneficiaries within 30 years. Thus, the P118 million worth of shares of stocks would be distributed to the farm workers not as a “one-shot deal” but for a period of thirty years at 1/30 per year
As likewise provided on the MOA, the qualified beneficiaries of the stock distribution plan shall be the farmworkers who appear in the annual payroll, inclusive of the permanent and seasonal employees, who are regularly or periodically employed by the TADECO
Thus, the distribution of the farmworkers’ shares of stock is actually based on the number of hours of work or mandays in the hacienda. The mandays in turn, are based on the system of guaranteed mandays, wherein the management of the HLI allocates the number of mandays available for manual work. Moreover, if a farmworker will be dismissed from employment for any cause and therefore his name will not appear in the annual payroll, he will not receive any shares of stock for the year he was dismissed onwards. On the otherhand, a newly employed worker, although he is not a resident of the hacienda and should therefore not be beneficiary of the SDO, as his name appeared on the annual payroll, will receive such shares of stock on the basis of his mandays.
DISMISSAL OF FARMWORKERS AND LOW WAGES
In the year 2003, the daily wage for seasonal workers is P199.17 and for casuals, P194.50 which translates to a maximum of P1, 327.80 and P1, 296, respectively, per month based on 80 guaranteed mandays. After deductions for the loans and advance pays, the average take home pay is P18 for the seasonal, or P9 for the casual for a 2-manday week.
Aside from the diminishing mandays and horrendous and intolerable take home pay, the area of the land originally placed under SDO likewise diminished by Land Use Conversion (LUC).
As guaranteed mandays dwindle, massive lay-off of farm workers in sugar-coated forms like early retirement (replete with quit claim/waiver documents) or the more direct retrenchment become widespread.
Keep reading →