Case Analysis of Lapanday Foods Corporation

Submitted to: Prof. Rosemarie Dichosa

Submitted by: Florabelle May D. Libawan, MBM-1A

I. Executive Summary

This study aims to examine the cause of the dispute between the management of

Lapanday Foods Corporation and its employees and recommend ways that are favorable

to both parties.

II. Introduction

Lapanday Foods Corporation was established by Luis F. Lorenzo, Sr. who acquired the

Guihing, Lapanday, and Cadeco farms from the Ayala-Aboitiz group in 1982. The

company is an integrated grower, supplier, and exporter of premium-quality tropical

fresh products. The main products they produce are bananas and pineapples. The

company’s production operations are based in more than 25 locations in Mindanao

including Davao, Cotabato, and Bukidnon. Lapanday Foods Corporation is exporting

their house brands, Estrella, Aloha, Mabuhay and Island Sun, to markets in the Asia-

Pacific and the Middle East.

The company provide jobs not only to 4,000 full time employees, but also to over 2,000

small farmers and 15,000 people in related service businesses. Having such a huge

number of employees, labor disputes are unavoidable.

On June 3, 2015, Lapanday Workers Union (LWU) filed a preventive mediation against

the company before the Davao branch office of the NCMB, invoking bargaining
 deadlock and unfair labor practice (ULP). The union also cited bargaining in bad faith,

alleging the company of intentionally delaying the conclusion of the CBA to deny the

members of the 6-month retroactivity (Galorio, 2015)

On 16 December 2016, Mindanao Independent Labor Union of Lapanday (MILUL)

filed a Request for Assistance (RFA) at DOLE Regional Office 12, against Lapanday

Foods Corporation over alleged unfair labor practices. The Union alleged management

of non-payment of wages, service incentive leave (SIL), holiday pay, and illegal

dismissal of sixteen union members (Amigo, 2018)

On 05 February 2020, the union filed a Notice of Strike alleging bargaining deadlock

and unfair labor practice specifically union busting, illegal dismissal of union members,

and diminution of wages. Parties failed to agree on the economic provisions of the CBA

specifically wage increase, vacation leave, sick leave, retirement benefits and voluntary

resignation. The union conducted a strike vote balloting on 27 February 2020 to show

the management that the majority of the union membership is united in their stand to

conduct an actual strike if parties failed to forge an agreement (Guerrero, 2020).

III. Analysis

The recurring the complaints of the employees implies that the management is not doing

its job in taking care of its employees. Another possible reason is that the management is

not well educated of the Labor Laws which results to complaints. But the biggest
problem is that the management doesn’t listen to the cry of their employees and for that

reason, the latter have resorted to ask for the help and assistance of the authorities.

Although the disputes have been settled, it already damaged the image of the company

and the company spent millions to amicably settle the same.

As an employer, you must pay special attention to your employees' needs, including

grievances they have regarding workplace-related matters. Employee grievances are

issues and instances that make it difficult for employees to perform their duties

comfortably. Typically, employees present their grievances to management for

resolution. The reasons for employee grievances may vary by employee, and will

depend on the type of business you run and your company's culture (Brookins, 2017).

Grievances typically could arise because of a variety of reasons:

1. Grievances Resulting from Working Conditions

2. Grievances Resulting from Personal Maladjustment

3. Grievances Resulting from Management Policy

4. Grievances Resulting from Alleged Violation

5. Grievances Resulting during Concerning Wages

6. Grievances Resulting during Supervision

7. Poor Working Environment

8. Poor Quality of Manager

9. Unfair Practices

10. Work Overload

 11. Favouritism

12. Disciplinary Actions

A grievance may be genuine or ridiculous, stated or unstated, valid or invalid, legitimate

or illegitimate, in writing or not (Jucious). However, the discontent causing the

grievance must be connected with the organization concerned. Of course, Grievances

exist in the minds of individuals, are produced and dissipated by situations, are fostered

or healed by group pressures, are adjusted or made worse by supervisors, and are

nourished or dissolved by the climate in an organization which is affected by all the

above factors and by the management (Soumita)

IV. Recommendations

Before the grievance escalates and affect the organization as a whole, the HR should

step up. In the case of Lapanday Foods Corporation where in the employees complain

about unfair labor practices, I recommend the following:

1. The management, especially those that were assigned in the HR should

equip themselves with the knowledge on Labor Laws, subsequently

check if they are abiding the rules and correct it if not;

2. Build rapport to the employees to promote an open communication; and

3. The management should be open to its employees, they should always

hear them out and settle the dispute within the organization as much as

possible.
Ranjit Jose, Co-Founder of Hyphen – Be Heard At Work provides for the five reasons

why the management should listen to its employees.

1. Employee Initiative

In a recent poll, 38% of employees felt that when leaders dismiss their

ideas without entertaining them, they tend to lack initiative. An active

and committed employee base, is one of the benefits of listening to your

employees.

2. Engagement and Innovation

The importance of listening to employees can be seen in terms of

innovation. Many companies encourage their employee’s opinions

through contests, rewards, and bonus structures. When employee ideas

are heard and encouraged, the company can stand to positively impact the

bottom-line, whilst engaging the employee simultaneously.

3. Staying Proactive

Instead of always finding ideas, suggestions and feedback from top-down

processes, the power of crowd sourcing can be particularly effective in

understanding what is truly important to employees. With the right tools,

letting employees themselves ask and engage can bring issues that you

need to be solving to the forefront. CEO’s, Executive leadership, and HR

directors can use this data in real-time to determine trending ideas,

conversations, and feedback. This allows them to take immediate action,

and enables a proactive, rather than reactive, approach.

 4. Retention

Many employers make the mistake of moving forward with plans, like

benefits programs, and bonus structures, without engaging their

employees first. Listening to employee’s concerns can help you develop

retention strategies that focus on boosting employee morale. With a solid

program in place, that encourages active listening of employee concerns,

you can have a positive impact on your retention percentage.

5. The Bottom-Line

Another key reason why listening to employees is important is how

impactful it can be to your bottom-line. Employees who feel listened to

feel more connected with the employer and in turn feel more engaged and

motivated to do the best work for the organization. In addition to having

tools in place that can help ensure that you are listening to your

employees, having regular open forums such as All-Hands Friday

lunches, Quarterly all-hands on company goals etc. can inculcate a

culture of listening and open communication within the company.

V. Implementation Plan

For the first recommendation, which is to have HR be equipped with the knowledge

on Labor Laws, it is best if the company will hire an HR officer that already have a

background education on the specific subject matter. However, if not possible, the

Department of Labor and Employment (DOLE) conducts trainings and seminars, and
provides a handbook that can serve as employees and employers guide that can be

accessed online. If it’s still unclear, the company can always call or visit the DOLE

Offices for guidance.

The second recommendation is to build rapport with the employees. Employees who

feel they have a comfortable relationship with their managers are usually happier in

the workplace. This is hugely important, as a study by the University of Oxford

found that happy employees were 13% more productive. A few ways the best leaders

build rapport with their employees have been outlined below:

1. Create a Collaborative Environment

2. Practice Active Listening

3. Check Your Body Language

4. Be Authentic

5. Communicate Expectations

6. Provide Assistance Programmes

Lastly, the management should always listen to its employees. Riia O’Donnell, a

Human Resource professional provides for the useful and effective ways on how to

effectively recognize to employee’s complaints, which are as follows:

1. Start with surveys

2. Listen actively

3. Keep listening top of mind

4. Ask for innovation

 5. Turn into action

6. Don’t take it personally

Encouraging staff members to offer their ideas — and seeing those come to fruition —

inspires others. It can be a ripple effect that moves throughout the company. The more

you open your door (and your mind) to ideas and suggestions, the more ownership

staffers will have in their work and the company. That can only boost the bottom line.

VI. Conclusion

Employees who know they are heard are more engaged and productive. When staff

members have a voice, they’re willing to use it. One study found that, while companies

are looking for new ways to improve, 82% of their staffers have ideas that could help

achieve their goals. Unfortunately, the same study found more than 1/3 of staffers think

their company doesn’t listen to their ideas for improvement. Is your organization

missing out on opportunities to innovate, improve efficiencies, and serve your

customers? There’s only one way to find out — listen (O’Donnell,2020).

But of course, it should not stop just by listening alone. The company should investigate

thereafter, draw conclusions, take action, document, and get back to the complainant to

ensure he or she is satisfied with what was done. Employees won’t ask for the help of

the authorities or make a big issue out everything if they feel that they are heard and the

company is also trying its best to resolve it.

 Finally, it is also important to keep employees informed. Employees should be told of

actions resulting from their reports. This will make them feel like they are

accommodated and well taken care of which will lessen the tendency of an uproar.

The job of HR is more of an art than a science. You can't always do the perfect thing

every time because you're dealing with imperfect employees. Listening and taking the

time to learn about your employees are the keys to your success (Lucas, 2019).

VII. References

Amigo, C. (2018). 8 Lapanday Foods Corporation Workers Reinstated After

Settlement of Preventive Mediation Case. National Conciliation and Mediation

Board.

Brookins, M. (2017). Reasons for Employee Grievances. Bizfluent.

Galorio, D. (2015). NCMB settles labor dispute at banana plantation. Department of

Labor and Employment.

Guerrero, GP. (2020). RCMB XI Averts Strike in Lapanday Amid Pandemic. National

Conciliation and Mediation Board.

Hirschman, C. (2008). Giving Voice to Employee Concerns. SHRM.

Jose, R. (2015). 5 Reasons Why You Should Listen to Your Employees. SHRM.

Lucas, S. (2019). 6 Tips for Handling Employee Complaints. The Balance Careers.
O'Donnell, R. (2020). Listening to Employees: It’s More Important Than You Think.

Workest by Zenefits.

Soumita (2019). Causes of Employee Grievance. Business Management Ideas.

Retrieved from https://www.businessmanagementideas.com/employee-

grievance/causes-of-employee-grievance/20564