GROUP 3

ACTUAL CASES OF AN UNETHICAL PRACTICE OF THE

PHILIPPINE COMPANY
PHILIPPINE COMPANY
Magnolia Inc.
Jollibee Corp.
Philippine Airlines
Ayala Land, Inc.
Nutriasia Corp.
Nestle Corp.

LEADER : SOMERA, FRANCE MELVIN

MEMBER: HILARIO, JOANNA

PASCUA, PIA MAE
REYES, JOHANNA
SAN JOSE, AILA MAE
SINGSON, ANNA MARIE

SECTION: BSA 2-B

SUBJECT CODE: AEGBRI
 MAGNOLIA INC UNETHICAL PRACTICE
According to the Department of labor and Employment, Magnolia Inc. has
been engaged to the contraction of labor which falls in Endo process. This company
suspected to be engaged in illegal contracting practices. Among 20 companies,
Magnolia place in 10th spot in the list with 2,248 workers supposedly affected.
Magnolia Inc. also released a statement in response to its presence on the
list, stating that it has always sought to respect the rights of its employees and
workers.
"We believe our inclusion on the list is due to the utilization of specific
apparatus and equipment leased from a DOLE-accredited independent service
provider whose workers maintain and run them, rather than our contracting of
labor." The DOLE is concerned about them, not our workers and employees," it
claimed in a statement on May 30.
Magnolia stated that it is working with DOLE to resolve the issue as soon
as possible.
"As a firm, we feel that all of our partners should take the same precautions
that we do when it comes to ensuring that the environment is protected."
According to the Department of labor and Employment, Magnolia Inc. has
been engaged to the contraction of labor which falls in Endo process. This company
suspected to be engaged in illegal contracting practices. Among 20 companies,
Magnolia place in 10th spot in the list with 2,248 workers supposedly affected.

SOURCE:
 https://www.pna.gov.ph/articles/1036726
 https://www.gmanetwork.com/news/money/companies/655117/magnol
ia-says-inclusion-in-dole-s-list-stems-from-workers-of-service-
provider/story/
 Jollibee penalized for illegal contracting
According to the Department of Labor and Employment, the country's
largest fast food business and its contractors were caught engaged in illegal "labor-
only" contracting practices and were fined (DoLE). Jollibee Foods Corp. and its
contractors at nine outlets in the Miraropa Region were discovered to be engaged in
labor-only contracting activities, according to a report submitted to Labor and
Employment Secretary Silvestre Bello 3rd by DoLE Mimaropa Director Alvin
Villamor. The provinces of Mindoro, Marinduque, Romblon, and Palawan comprise
Mimaropa.
The results caused the Department of Labor and Employment's regional
office to compel Jollibee and its three contractors to immediately regularize 468
employees who were undertaking activities directly relevant to the food chain's
principal business operation.
Employees at the restaurant chain have also complained about alleged illicit
deductions from their wages, according to the group.
"Its workers complain that Jollibee has no regard for their security of tenure.
They are contracted out from service contractors even though their tasks and
responsibilities are integral to the company's business operation," the resolution
states.
According to the coalition, a Department of Labor and Employment
assessment report from July found that Jollibee violated its employees' security of
tenure by contracting out personal requirements for tasks and responsibilities that
are vital and directly related to its business operation to service contractors.
Jollibee and the contractors were also ordered by the DoLE regional office to
reimburse the affected employees for improper deductions of P775,050, as well as
submit documentation of remittances to the SSS, Philhealth, and Pag-IBIG to
ensure workers' social welfare benefits.
 The following are prohibited under DoLE Department Order (DO) 174, or
the Rules Implementing Articles 106 to 109 of the Labor Code:
• labor-only contracting; • work-farming using a "cabo"
• contracting out of a job or work through an in-house agency;
• contracting out of a job or work through an in-house cooperative that
merely supplies workers to the principal;
• contracting out of a job or work due to a strike or lockout, whether actual or
imminent; and
• contracting out of a job or work performed by union members that will
interfere with, restrain, or coerce employees.

Source:
https://www.sunstar.com.ph/article/1753348
https://www.manilatimes.net/2017/12/25/news/top-stories/jollibee-penalized-illegal-
contracting/370553/
 Philippine Airlines is one of only three major airlines that still ship primates
to laboratories where they are tormented and killed in cruel experiments, but you
wouldn’t know it from talking to its representatives. Airline reps have recently been
telling concerned PETA members who call their offices that they don’t ship monkeys
and have not done so for a long time—but that’s a lie.PETA has obtained documents
that show that Philippine Airlines has shipped nearly 200 pig-tailed macaque
monkeys from Indonesia to the University of Washington’s Washington National
Primate Research Center in Seattle within the past 12 months alone. The
documentation is crystal clear, containing invoices, tracking numbers, flight
numbers, and many other details. There may be other such shipments as well.
Because of the growing pressure from PETA and its supporters around the
world, Philippine Airlines could no longer ignore the issue and released a statement
on its website and Facebook page that read, “Philippine Airlines is not engaged in
the transport of wild, endangered or threatened animals, regardless of their
purpose.” Yet the pig-tailed macaques it sent to the hellish laboratory mentioned
above are widely considered a threatened species. When PETA and PETA Asia-
Pacific e-mailed and called Philippine Airlines asking that the airline explain the
discrepancy between the records and its new statement, it quietly removed the
statement from its website and Facebook.

Reference:
https://www.peta.org/blog/philippine-airlines-caught-lying-record-cruelty/
 AYALA LAND, INC.
Philippine economic progress largely depends on the real estate sector, and
real estate developers are the ones who are boosting it forward. Particularly, large-
scale, mixed-use estates designed by Ayala Land Inc. have turned into dynamic
economic centers in the Philippines. When we design and build sustainable
developments, they maximize the value of land for all stakeholders, including
residents, investors, and shareholders.
However, there are instances of malpractice in the field of real estate, just
like in any other. They occur as a result of negligence or maliciousness.
Furthermore, Ayala Land Inc. has been reported in doing some unethical practices
such as false promises and undisclosed hazards. These issues have been raised by
most of their clients who are also unsatisfied with their services. False promises of
Ayala Land Inc. happened when new residents of a Taguig community filed a
complaint stating that their houses' foundations were damaged and stiffened as a
result of illegal site digging. This is unethical because false promises are a form of
immorality as it involves taking advantage of the situation for your own benefit.
That’s why integrity is significant in this field, especially when a client has to invest
their money seeking assurance and good quality. In addition, undisclosed hazards
in the works of Ayala Land Inc. have been conducted by not giving all the necessary
information about the property. Therefore, the information like flood hazards is
withheld for them to make a revenue and in order to persuade the client to avail.
These details have been recognized through the site of Ayala Land Inc. where the
clients are able to rate their services. Unfortunately, even though most of the news
are about their success, the complaints about their unethical practices are being
untold.
 NutriAsia workers illegally arrested, falsely accused and detained for
exercising the right to strike
A few hours after the strike began on July 6, at around 9:30 a.m., a
combined force of Philippine National Police (PNP) Laguna, NutriaAsia security
guards, and hired goons attacked the strikers. The goons and security guards used a
bulldozer to force open the plant's gate and threw stones at the workers who were
on strike inside the plant. The cops beat the workers with batons and shields.
During the commotion, the police arrested 17 striking workers. There were also
reports of sexual harassment, with some of the arresting cops and security guards
touching the breasts of a female striker who had been arrested. The
violent dispersal also left scores of workers injured.
More than a year after the workers' strike in NutriAsia-Marilao, Bulacan,
workers at NutriAsia in Light Industry and Science Park (LISP), Cabuyao, Laguna,
led by KASAPINA-OLALIA-KMU, went on strike on July 6, 2019, at around 5:00
a.m. Workers complained against the following unfair labor practices of the
company:
1. Labor-only contracting.
2. Illegal deduction of wages.
3. Forced overtime.
4. Underpayment of overtime pay.
5. Harassment and falsification of cases presented specifically against
uniomembers.
The strike occurred two years after the Department of Labor and
Employment Region IV A (DOLE IV-A) issued a decision in 2017 ordering
NutriAsia to recognize as regular employees the 714 contractual workers employed
by ANR, B-Mirk at Serbiz agencies at the time. According to the Order, the latter
are engaging in the prohibited practice of Labor Only Contracting (LOC), and thus
the workers they hired and deployed in NutriAsia are deemed to be regular
NutriAsia employees. NutriAsia and its network of manpower agencies, on the
other hand, defied the order, and workers remained contractual.
 Following complaints filed by police and company guards, all 17 arrested
Nutriasia striking workers were taken to Cabuyao police station and charged with
Arson, Serious and Slight Illegal Detention, Malicious Mischief, Robbery, Grave
Coercion, and Theft. Reyniero Maarat (Union President, KASAPINA-OLALIA-
KMU) and Jennifer Lagaya are among those detained (Vice President of Education,
KASAPINA).

Source:
https://www.svenssonstiftelsen.com/post/nutriasia-workers-illegally-arrested-
falsely-charged-and-jailed-for-exercising-right-to-
strike#:~:text=Workers%20complained%20against%20the%20following,filed%20ver
sus%20especially%20union%20members .
 Nestle Corporation Unethical Practices
Nestle Philippines Incorporation is known for its production of different
kinds of foods and beverages. In the past decades, they have been involved in "The
Nestle Infant Formula Scandal" or "The Baby Killer" that started in 1977 and has
continued until now. This scandal is about Nestle's misleading advertisements
and false claims. According to their advertisement, infants would be in good health
and condition if they consumed their infant formula instead of breast milk. Even
though Nestle knew that breast milk was always the healthier alternative, they
continued to engage in misleading advertising methods. Along with making false
claims, they also give free feeding bottles to encourage more mothers to purchase
their products. Furthermore, Nestle established an agreement with hospitals and
other medical providers to offer their products to new mothers as soon as they were
released from the hospital. This is to manipulate mothers into believing that their
products are recommended and approved by health professionals and other
organizations.
Additionally, the strategy of Nestle is to manufacture their infant formula
in third-world countries with a low literacy rate, including the Philippines, where
many mothers are uninformed of the dangerous practices linked to their milk. Also,
the price of their milk is not affordable, especially for those less fortunate families,
which forces them to use a small amount of milk every bottle that causes
malnutrition since the nutrients are not enough to support infants. They made
families believe that feeding their babies this infant formula would make them
healthier, but in fact, it resulted in diarrhea and vomiting. That is why they failed
to address their duty to appropriately inform their customers about the nutritional
cost and risk of their infant formula products. These unethical practices by Nestle
Corporation resulted in the illnesses and deaths of many infants.