LABSTAN / Module 1 to 2 Exam

Background for the questions.

Watch the video and the read the articles (They`re both clickable in Bigsky).
1. news video on Nutriasia
https://www.facebook.com/watch/?v=2224715277768359

2. news articles regarding strike at Nutriasia

https://www.business-humanrights.org/en/philippines-workers-at-nutriasia-factory-face-lawsuits-and-suffer-injuries-
after-dispersal-of-protest

(Note: Read all the articles to get the respective versions of the employer, the workers & DOLE.)

QUESTIONS

1 Discuss the employer-employee relationship you can find in the situation.

(6 points) The employer and employee that is present in the situation, first is about payment of wages.
The strikers claim that the company did not give an incentive such as holiday pays and the
incentives that the company should provide for them. Moreover, they questioned the power
of dismissal because of the issue about contractualisation and about extendend regular
agreements.

2 Is there labor-only contracting or job-contracting in the company?

(8 points)
There is a labor-only contracting in the company. The contractor of Nutri Asia which is Asia
Pro Multi-Purpose Cooperative (AMPC) was engaging in labor-only contracting schemes.
The Department of Labor found that the contractor did not solely exercise control and
supervision on the performance of its workers under the job or work contracted out.
Moreover, AMPC has no capacity to procure its own equipment and machinery. On the
other hand, the other contractor of Nutri Asia which is -Mrik Multi-Purpose Cooperative
(BMPC), Fast Services Corp., Bison Security and Investigative Agency, City Service
Corporation, and Manchester Engineering are job contracting according to DOLE.

3 Assume you`re the HRD manager of the company, how can there be an independent
(6 points) contractor in the company (discuss the kind of service + other requirements)?

For the company to be able to have an independent contractor first it should have a distinct
and independent business. The business should be registered in Department of Labor and
Employment. Second, it should have a substantial capital or investments which means it
should have a capital first for them to be able to the services that they offer. Lastly, it should
have agreement or contract between the owner and the independent contractor. But before
doing this, as an HRD Manager I should do first to check the background of the outsourcing
company and prepared the contract. Otherwise, there will be an unpleasant situation and I,
the manager will be blamed.
4 If you're the owner of the company, will you prefer to have employees or independent
(6 points) contractors? Why/ why not?

As the owner of the company I would prefer to have independent contractors. First having
an independent contractor would be more affordable because the overall costs are likely to
be less. You don't have to withhold taxes, pay for unemployment and workers comp
insurance or provide healthcare benefits, nor do you have to cover the cost of office space
or equipment. Second, having an independent contractor can hire the right person for the
task needed, contracting someone with a specialized service. They often have many years of
experience, so you don’t need to train them. Lastly, they are responsible for their own
permits and professional licenses.

5 If you`re the HRD manager of the company with this ongoing strike, what should you do?
(8 points)
If I am the HRD Manager of a company with this ongoing strike first I will keep the
straightforward approach where is to keep your basic business operations going. The
current employees into required roles to cover the work of those on strike. If the employees
did not cover the roles, I would permanently hire temporary or fixed-term employees to
cover roles, so that the business is still going. Furthermore, the things that I can do to the
people who were striking is to have an open communication with them for us to be able to
solve the problem together.
6 What are your personal insights about what happened in the company?
(6 points)
The insights that I gained from this situation is as future a HR I should be familiarize about
this kind of employer-employee relationships. Second is to broaden my knowledge about
legal basis about employer- employee relationship. Lastly is to become more careful in
terms of hiring independent contractors.

Lao, Yolayla A. -OTH001