NUTRIASIA Inc.

Background, Controversies and Recommendations

Submitted by:

Group 5

Crisostomo, Alrenz

De Guzman, Aiby Lorraine

Francisco, Maica Janil

Galang, Aira

Obcena, Marize

Panahon, Jana Sabbine

Submitted to:

Mrs. Chona Eduardo Matias

Introduction
 Flourishing for thirty years (30) now in the food industry, NutriAsia Inc., formerly
named "Southeast Asia Food Inc.," is the leading food company in the Philippines with 116
distributors worldwide. Its existence and service to consumers started in 1991 when it had been
founded by Joselito Campos, with "Nelicom" as its regional brand name that produces various
condiments such as catsup, hot sauce, soy sauce, and fish sauce. This era's consumers are
reminded of NutriAsia through their highly recognized products known in the market as Datu
Puti, Mang Tomas, UFC Catsup, and Silver Swan.

Today, the company's success features a vast history of short-term and long-term
partnerships or joint ventures with various domestic and foreign companies related to their line
of work. As the first in its records later in 1991, the company acquired Jufran and Mafran and
entered into a joint venture with Acres & Acres, which was noted to be the manufacturers
behind the products Datu Puti vinegar, Papa banana catsup, and Mang Tomas. With success as
a result, the company had been given the name "Southeast Asia food Inc." (SAFI). Another
superb acquisition happened in 1994 as Amihan, a regional brand known for producing vinegar
and other sauces, joined the company and eventually increased the sales, which led to the
emergence of their first distribution affiliate. Subsequently, SAFI acquired UFC in 1996, plenty
of names among consumers whose loyalty to banana catsup is transparent. In that same year,
the name NutriAsia came into existence. Then from 1998 to 2000, the consolidation that took
place within that period downsizing the number of factory streamlines from fifteen (15) to five
(5), proved efficient and smart as it significantly heightened the figures in terms of profit. As a
strategy, the profits were plowed back to the company to guide the growth of its core catsup,
sauces, and liquid condiment business.

The company continuously serves the public through continued efforts in its ventures.
During the year 2000, the company succeeded in its first partnership with a foreign company,
HJ Heinz, based in the USA. Heinz - UFC handled catsups and sauces while SAFI handles the
other products. Eventually, Heinz - UFC and SAFI later became subsidiaries of NutriAsia, Inc.
Although the partnership with Heinz was relatively short-lived, NutriAsia managed to launch
two new categories during its partnership with Heinz: Cooking sauces and cooking oils, which
were vital additions to the company in acquiring new technologies and business processes.
After the separation of the two companies, NutriAsia once again consolidated its factories from
four (4) to five (5), delegating the whole work in producing their most patronized products as
evidently the constant pick of the consumers.
 In preparing the requirements needed to be considered "world-class", the company
proved its excellence as it gained benefits from consolidation as the production of its liquid
condiments was assigned to the Marilao Mega Plant and Cabuyao plant. However, due to
growing demands across the country, two (2) new lines were constructed in Cebu and Davao to
prevent a shortage. Today, the company ensures its valued customers of high-quality products
and services through the state-of-the-art construction of its Cabuyao plant and the integration
of technology-based processes and methods to warrant efficiency and quality standards
producing catsups and sauces are met. With such strategies behind its glow, NutrAsia commits
to producing the best quality and ensures excellent meal experiences.

Case Facts

Nutriasia, Inc. is the manufacturer of various well-known Filipino condiments such as

Datu Puti, Mang Tomas, and UFC. Jessie Gerola, president of Nagkakaisang Manggagawa ng
NutriAsia Inc., led 200 outraged workers and supporters in a protest for their rights and
conditions on June 4. The company's issue of employee rights and unjust compensation is to
blame. Jornell Quiza, an employee for NutriAsia, Inc since 2010, whom a contractor employed,
spoke about his service experience there. He was regularly assigned to various work tasks with a
heavy workload, all for the small amount of money of P380 per day. It was not only Quiza who
had faced this issue, but the majority of NutriAsia Inc. employees have also been exposed to
unequal treatment and hazardous working conditions. Employees work 12 hours a day and
occasionally extra shifts to make enough money to meet their basic needs and earn to sustain
their living. Given that their compensation barely meets the minimum wage, they pay for their
uniforms and protective gear, which cost more than P1,000 each, without receiving
reimbursement over the years, despite workers' demands. Workers' take-home pay was also
decreased due to additional deductions for their Health Maintenance Organization (HMO) and
"coop share."

NutriAsia, Inc. also engages in contractualization, which had previously been restricted
by the Labor Code and Labor Department Order 174. This had reduced the daily employment
agreements to less than 10% of NutriAsia, Inc's workforce. Several groups have condemned
NutriAsia, Inc's labor dispute, with some also calling for a boycott of the company's products.
During the rally, NutriAsia security forces and police forcibly expelled workers and supporters
who joined in protesting for their rights. The workers were violently evicted from their
makeshift camps by security services. Protesters knelt in the hopes of avoiding police abuse.
Instead of practicing discipline securely and reasonably, security and police officers responded
to brutality and went out to beat up on the protesters. The public was given access to a
comment made by one of the protesters. "They did not stop. As long as someone is lying there,
they will continue to hit them." Seventeen people were arrested, including workers and
supporters. Many others were wounded, while some had gone missing.

Controversies

NutriAsia, Inc. violated the 1997 Constitution's mandate to "protect workers' interests
and promote their welfare." According to Section 3 of Article XIII of the Constitution, workers
are entitled to "protection of tenure, humane working conditions, and a minimum wage."
Allowing workers to work long hours with a heavy workload in exchange for an unfair salary is
only classified as the Philippines' minimum working wage and inadequate to meet their basic
needs. The regularization of employees at NutriAsia, Inc. has also become a problem due to the
company's inadequate exercise and regulation. About 10% of workers have their contracts
renewed regularly. NutriAsia, Inc violated the compliance order. For the past ten years,
countless workers have only worked as contractual employees.

The DOLE compliance order recognizes the contractualization of employees and several
other violations, including non-compliance with the Occupational Safety and Health Standards
due to the failure to provide employees with protective gear. According to the DOLE
enforcement order, NutriAsia violated Article 113 of the Philippine Labor Code by deducting
uniform payments from their salaries. Under Labor Advisory No.11, Series of 2014, deductions
for their uniforms are prohibited. The main issue is labor abuse due to their unfair wages and
corporate contractualization, which happens regardless of how long they have worked for
NutriAsia, Inc. There is also a lack of protective gear and salary deductions attributable to
uniform expenses. Every worker in our country has the right to demand fair and lawful
treatment from large corporations.

A True Labour Issue

On June 27 at 2:02 pm, Nutri Asia, on its Facebook page, issued a statement stating, "No
Endo for Striking Workers against Nutri-Asia. We welcome the ruling of DOLE Region 3, which
confirms that the striking workers are legitimate B-MIRK group employees. In light of this
ruling, we choose to be compassionate and work hard to bring this labor dispute to a peaceful
resolution. It was unfortunate that there were many negative reactions to this issue due to false
information, but we welcome the truth with this ruling and hope that all parties do the same.
NutriAsia also released a statement, washing its hands off from their obvious practice of
"endo." They argued that the workers on strike only provided "auxiliary and support services"
and even said that their relationship to workers through BMirk Enterprises is a "legitimate
contracting arrangement."

Contrary to their lies, the workers on strike are responsible for operating their machines
— a job crucial in producing billions of their net worth. The information NutriAsia is spreading
is the ones operating false and inaccurate. The workers who joined the strike have worked there
for decades amid being contractual and their rampant violations of safety and health standards.
Nutri-Asia stands firm with its values of Malasakit, Excellence, Respect, Integrity and
Ingenuity, Teamwork. We humbly ask everyone to move on and continue the journey towards
the righteous path of compliant and good labor practice."

Considering the release of NutriAsia's statement, employees of the said corporation and
supporting youth activists, since June 2, 2018, have been protesting their rights to just wages
and employment benefits and voice out there being victims of contractualization. Their
protests caught the authorities' attention, which resulted in a violent dispersal by the PNP on
July 30, 2018. The police later denied their tumultuous acts on the protesting workers and
supporters and claimed they threw the first fist. Charges were filed against protesters and some
of their supporters the next day. In one of the striking worker's testimonies, their labor union
was unrecognized and prohibited. However, due to extreme conditions that they are suffering
from NutriAsia's refusal to regularize them, they formed their union called "Nagkakaisang
Manggagawa ng Nutri-Asia Inc." as a response to the result of the investigation and inspection
of DOLE. The findings point out that the contractualization in the company is illegal. Five (5)
officials of the union were fired while the rest of the protesting workers were constantly being
threatened of losing their jobs.

The protest included NutriAsia's recognition of the worker's union, regularization, and
full employee benefits and rehire union leaders who were illegally dismissed. One worker
testified that some of them have been working for almost a decade but are still contractually
receiving a minimum wage of 380 pesos per 8 working hours. Another worker stated that they
could be fired without due process and pay because they are just contractual workers. It was
known that only 100 workers out of approximately 1,400 workers are regular employees.
Another issue was that victims of work-related accidents were fired, so the records of NutriAsia
will be "Zero Accidents." They were deprived of their rights as workers to have just wages,
security of tenure, and the right to a safe workplace. Safety gears are left to the contractual
workers unless they are plantilla staff.
 "What we want is for them to hear us. They disregard our sacrifices, and they do not
acknowledge that we are the ones who make their products", Quiza said. In support of the
workers, Netizens caused an uproar in social media as they urged the people to boycott Nutri-
Asia products (e.g., Mang Tomas, Golden Fiesta, Datu Puti, UFC, Locally, Silver Swan, Jufran,
and Papa Banana Catsup).

Solution

NutriAsia has been under fire in the months before the incident when they were
criticized for violating the ENDO (End of Contract) Policy by companies. NutriAsia claimed that
they were not violating labor laws since most of their workers are outsourced. They come
mainly from their four staffing agencies: AsiaPro Multi-Purpose Cooperative (AMPC), B-Mirk
Multi-Purpose Cooperative, Bison Security, and City Service. They constantly deny that the
workers who went on strike were illegally contracted or subcontracted. NutriAsia claimed that
they provide all the proper payment, compensation, and benefits to all of their regular
employees and ensure that their third-party toll packers and service providers likewise provide
the same treatment to its workers assigned to NutriAsia.

The NutriAsia management refused to face the workers in negotiations set on June 6
and June 9. On June 20, 2018, NutriAsia also released a statement, washing their hands off from
their practice of "ENDO." They argued that the workers on strike only provided "auxiliary and
support services" and even said that their relationship to workers through B-Mirk Enterprises is
a "legitimate contracting arrangement." The Department of Labor and Employment (DOLE)
ruled in NutriAsia's favor. However, on July 3, 2018, they reversed their decision and ordered
NutriAsia to regularize 80 of its contractual employees deployed from one of their workforce
outsourcing agencies AMPC. NutriAsia, before the incident, still has ongoing talks with DOLE
on the ENDO issue.

The Makabayan bloc party-list lawmakers include Carlos Zarate of Bayan Muna,
Antonio Tinio and France Castro of Alliance of Concerned Teachers, Emerenciana de Jesus
Arlene Brosas of Gabriela, Ariel Casilao of Anakpawis and Sarah Elago of Kabataan, were
referring to the DOLE Region 3 ruling. It stated that NutriAsia workers from the Nagkakaisang
Manggagawa ng NutriAsia Inc. (NMAI) who went on strike to protest poor labor conditions are
not NutriAsia employees but are agency employees of labor contractor B-Mirk Enterprises
Corporation.
 "DOLE Region 3's decision only shows its clear anti-worker bias. DOLE chose to be
blind, mute, and deaf on the many sins of NutriAsia, which for a long time denied its workers'
decent salaries, continually abused its workers' rights for better working conditions, practiced
arbitrary termination, unjustly made deductions from the worker's meager salaries and
instigated the recent violent dispersal of worker's strike that led to the serious wounding of five
workers and the illegal arrest of 20 NMAI members and supporters last June 14," Makabayan
said in a statement.

"Despite the serious violations of NutriAsia against its workers, DOLE's Region 3
decision justified the abuses and passed the buck to their agency. This is highly unacceptable
and deplorable. We are calling on Secretary Bello to order the reversal of this ruling
immediately. NutriAsia and B-Mirk committed serious violations of the labor law, and both
should be held accountable," Makabayan also added. NutriAsia makes no other clear measures
regarding the issue. They did not change their statements about denying the workers on strike
being illegally contracted or subcontracted.

Group’s Recommendations

If we were given the task to resolve this controversy, we would suggest that NutriAsia Inc.
face and settle all the lawsuits filed against them regarding their multiple violations in the
government's labor standards. Full compliance to the Labor Code and other related labor laws
that promote the workers' rights and welfare is a must to resolve this kind of problem
encountered by the company and can simultaneously serve as a preventive action.
Furthermore, the company must remove contractualization schemes so that employees will be
able to enjoy the full incentives and benefits that they deserve according to the Labor Code of
the Philippines.

The company should also comply with the Occupational Safety and Health Standards by
providing personal protective equipment to their workers and to comply with Article 113 of the
Labor Code of the Philippines by stopping from deducting the employees' uniform expenses
from their salary. Providing a sound work field, living wage, and humane employee treatment
will produce a sense of security and appreciation for every hardworking employee. We would
also like to recommend those regulators to thoroughly assess business entities' way of business,
primarily how they handle their laborers. Regulators have to ensure that every business entity
serves to uphold the human rights and protection that every laborer deserves so that
controversies like this will be minimized. Because just like an old proverb says: “prevention is
better than cure.”
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