QUEZON CITY – Cooperative leaders from across the Philippines convened at the 2nd National Forum for Federations and Unions on May 28, held at the Ardenhills Suites Ballroom, where they reaffirmed their commitment to strengthen and unify the cooperative movement.

A total of 150 leaders representing cooperative federations and unions nationwide signed and issued two key Position Papers. The first urged President Ferdinand Marcos to retain cooperative Development Authority (CDA) Chairperson Alexander Raquepo, who had submitted his courtesy resignation in response to the President’s call for all Cabinet officials to do so. The second asserted the right of primary cooperatives to decide to whom they remit their Cooperative Education and Training Fund (CETF).

After heated discussions, a representative of the Sorsogon Union of Cooperatives proposed for the Forum participants to draft, sign and issue a Position Paper on the CETF remittance as provided for in SB 2811.

The CETF position was a direct response to Senate Bill 2811, filed by Senator Imee Marcos in September 2024, which proposes that cooperatives remit their CETF contributions to both unions and federations. The bill mandates that 70% of the CETF—equivalent to 10% of a cooperative’s net surplus—be remitted to cooperative unions. However, some union leaders had proposed that 100% be remitted to unions, given their primary role in cooperative education as defined in the Cooperative Code of 2008.

Federation leaders strongly opposed this measure, emphasizing that primary cooperatives should have the autonomy to decide where to allocate their hard-earned surplus for education and training.

The forum also revisited themes from the first national gathering held in Baguio City last February 21, hosted by the Cordillera Autonomous Region Cooperative Union (CARCU). The shared theme, “Cooperatives Build a Better World: Uniting Federations and Unions for Sustainable Progress,” underscores the continuing challenge of sectoral unity—particularly in light of proposed amendments to the Cooperative Code of 2008.

One contentious proposal is the delineation of functions: unions focusing solely on basic cooperative education, and federations taking charge of business-related training. This structural divide is seen by some as a potential barrier to holistic cooperative development.

Further controversy surrounds the mandatory CETF remittance proposed in SB 2811. While CETF contributions were optional under the 2008 Code, SB 2811 seeks to make remittances—especially to unions—compulsory. This has sparked debate among cooperative leaders, leading to calls for greater discretion by primaries.

The 2nd forum, hosted by the NATCCO Network, followed just ninety days after the first, and five weeks after the Strategic Planning and first General Assembly of the National Union of Cooperatives (NUC), hosted by VICTO National in Cebu City on April 1–3.

In her welcome remarks, NATCCO CEO Sylvia O. Paraguya emphasized the importance of history in building the future: “Understanding the history of cooperatives is not just about nostalgia—it’s about building a stronger co-op sector. Today’s Forum is an opportunity to begin shaping future actions through the insights of both local and international leaders.”

CDA Chairperson Alexander B. Raquepo presented an overview of the current landscape: as of 2024, there are 279 registered second- and third-tier cooperative organizations in the country—comprising 74 unions, 202 secondary federations, and 3 tertiary federations—but only 9,312 primary cooperatives are affiliated with them.

“In other countries, there are only a few federations. Here, I would describe our situation as magulo pero masaya (chaotic but happy). Let’s work toward a unified plan for unions and federations,” he urged.

Mr. Balasubramanian Iyer, Executive Director of the International Cooperative Alliance Asia-Pacific, offered global perspectives, sharing models from Brazil, India, Italy, Nepal, Singapore, the UK, and the Philippines.

While acknowledging the diversity of cooperative systems worldwide, he emphasized that all leaders must critically assess their own frameworks and evolve with the times:

“Focus not just on structure but also on content, delivery methods, and inclusivity.”

Responding to the debate over CETF roles, he reminded participants that Cooperative Principle 5: Education, Training, and Information must be embedded at all levels—from primary to tertiary co-ops.

Former NATCCO Chairperson Atty. Adolfo Ibanez delivered a passionate address, drawing on 40 years of experience with tertiary organizations such as the Philippine Cooperative Center (PCC) and the now-defunct Cooperative Union of the Philippines (CUP).

He criticized the automatic allocation of CETF to unions under SB 2811:  “That money comes from the labor and sacrifice of co-op members, officers, and staff. Giving it automatically to a group—without performance—is unacceptable. Entitlement has no place in a dynamic cooperative movement!”

He described CETF as “sugar that attracts ants,” noting that the nationwide CETF collection amounted to Php 2.69 billion in 2022 and Php 2.37 billion in 2023.

Following the event, Ibanez expressed optimism on social media: “I am happy that unionists and federationists have agreed to let the primary cooperatives decide where to remit their CETF.”

Noel Raboy, President of CLIMBS Life & General Insurance, traveled from Cagayan de Oro to present the federation’s educational initiatives, especially for the country’s 15,338 micro cooperatives.

“In response to unmet needs in advocacy and education, CLIMBS is bridging gaps and sparking real change,” he said—highlighting that federations are already playing a key role in cooperative education.

Fr. Anton Pascual, Interim Chairperson of the newly-registered National Union of Cooperatives (NUC), also spoke on the organization’s mission to unite grassroots efforts, represent all cooperative types, and act as a bridge between unions and federations.

He downplayed CETF controversies, urging participants instead to rally around NUC’s call to “Build a Cooperative Economy Toward Shared Prosperity.”

Fr. Pascual also proposed to replace the word "I" in the Cooperative Pledge, and instead use the word "We", saying it is too individualistic.

Raquepo had earlier stated: “What the sector wants, CDA will respect.  We will not impose.  CETF is the money of the primary.”

COOP-NATCCO Partylist Secretary General Carlitos Dueñas thanked leaders for their support in securing one congressional seat in the May 12 midterm elections.

“There are now 54 Partylists that won seats in Congress, with 63 seats in total. While our votes increased across the country, the numbers from our 1.47 million member-cooperative staff didn’t fully translate into votes.”

He acknowledged top-performing provinces, including Ilocos Sur, Sorsogon, Rizal, Antique, Cebu, Leyte, North Cotabato, Davao del Norte, and Zamboanga del Norte.

Finally, Edwin Bustillos, Secretary General of the Philippine Chamber of Cooperatives, proposed a simple but powerful initiative: “Include the co-op vote in the Pre-Membership Education Seminar (PMES) and in every cooperative’s Education Committee agenda.”

Both Position Papers at the Forum have been emailed by the NATCCO Secretariat to the Office of the President, Senator Imee Marcos, and Congressman Felimon Espares.