CBMPC Representatives Attend the 2024 CDA-DOLE FORUM

On September 3, 2024, the CBMPC represented by Ma. Concepcion Caraig and Claudine Reyes attended the 2024 Cooperative Development Authority – Department of Labor and Employment (CDA-DOLE) Forum hosted by the Philippine Federation of Credit Cooperatives – National Capital Region (PFCCO-NCR) held at the City Gardens Suites, Manila. The said forum discussed CDA MC 2024-07 re: Guidelines Governing the Operations of Cooperatives Engaged in Credit Services and the Updates on DOLE General Labor Standards and other DOLE Issuances Concerning Cooperatives.

The forum served as a platform to discuss the essential role of all the primary cooperatives involved in savings and credit activities, and the general labor standards issuances by providing them crucial insights and comprehensive understanding to ensure that every cooperative is well informed on the significance and implementation of the guidelines fostering better compliance and operational excellence.

The event started with the Opening Remarks of Mr. Antonio M. Abilgos Jr., Vice Chair – Manager’s Group; and Overview of the Forum by Mr. Roy Ralan Joson, Director. Ms. Rose Canadido acknowledged the 105 participants that attended the event.

Resource Speakers were Ms. Myrla T. Racelis of CDA and Atty. Karen Ann S. Bueno-Jalmasco, of DOLE.

The highlights of the Forum were the presentation of CDA’s guidelines on Credit Operations and the Updates/Overview on General Labor Standards/ Issuances of DOLE.

CDA presented the Guidelines on Credit Operations as follows:

• • Interest Rate should not be more than 3% per month computed based on diminishing balance
  • Loans Secured by Real Estate Mortgages shall not exceed eighty (80%) of the appraised value of the real estate security including insured improvements.
  • Co-maker shall, at all times, be a member of the cooperative.
  • Loans can be restructured only once.
  • The application for a loan by a member of the Credit Committee regardless of amount should be directly forwarded to the Board of Directors for approval. No need to pass thru the Credit Committee. Exception are those loans against share capital and deposits.
  • Credit accommodation loan shall be prohibited. Delinquency among elected and appointed officer of the Cooperative is strictly prohibited and observed, including delinquency on loans, advances or any other debt balance with the cooperative. If this occurs and the delinquency is more than 60 days, the Board of Directors must suspend the duties and responsibilities of the delinquent party and may reinstate him/ her once the situation is remedied
  • Application of members’ Paid-Up Share Capital and Time Deposits (Regular and Special Time Deposits) to his/her loans are not allowed, except stipulated in the Promissory Notes signed by the member/borrower.
  • Writing off of past due account of Directors/ Officers and staff are not allowed. Writing off of past due account of other borrowers is allowed only in the following scenario:
    a. The death of the borrower
    b. Insolvency with judicial decree of the borrower
    c. Unknown whereabouts of the borrower despite extra-diligent efforts to find the same
  • Monthly Reporting to the Board of Directors on the schedule of DOSRI Account

DOLE presented and discussed the updates and Issuance of Department Orders as follows:

Department Order No. 238, Series of 2023 – Rules on the Administration and Enforcement of Labor Standards pursuant to Article 128 of the Labor Code of the Philippines, as renumbered, and Republic Act No. 11058

Department Order No. 174, Series of 2017 – Rights of Contractor’s/Subcontractor’s Employees

Department Order No. 198, Series of 2018 – Implementing Rules and Regulations of Republic Act No. 11058 Entitled “An Act Strengthening Compliance with Occupational Safety and Health Standards and Providing Penalties for Violations Thereof”

The event concluded with the Questions and Answers from the participants with regard to the regularization of Contractual and Part time Employee and DOLE’s responses are:

• For Contractual Employee –An employee who already rendered 1056 hours (6 months) work is qualified for a regular position and should be automatically recommended by the head of the company.
• For Part time Employee – An employee who rendered part time work e.g., 4 hours a day or 2 hours a day which accumulates to 6 months work is qualified for a regular position and should be automatically recommended by the head of the company.