FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

BUSINESS ADMINISTRATION DEPARTMENT

BUSINESS CASE STUDY

REPORT
A Final Paper in MGT1104 Organizational Behavior Course

DARLENE ALYSSA O. DULCE | CZARINNAH E. ELENTO|

AYRAND RANDALL B. PANGILINAN | REGINE FATIMA V. UY| MGT1104 | BUSINESS CASE STUDY REPORT
CARL PATRICK V. VILLA |ROGELENE E. VILLANUEVA

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Table of Contents
Table of Contents..............................................................................................................................i
List of Tables and Figures.................................................................................................................ii
Executive Summary.........................................................................................................................1
Overview of the Company...............................................................................................................1
The Case Study.................................................................................................................................1
Viewpoint and Time Context ......................................................................................................1
Case Facts....................................................................................................................................1
The Problem.................................................................................................................................1
Objective......................................................................................................................................1
Alternative Courses of Action/Criteria........................................................................................1
Recommendation............................................................................................................................1
Conclusion........................................................................................................................................1
References.......................................................................................................................................2

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

List of Tables and Figures

Figure 1. Root Cause Analysis Model

Table 1. Alternative Course of Action #1

Table 2. Alternative Course of Action #2

Table 3. Alternative Course of Action #3

Table 4. Alternative Course of Action #4

Table 5. Alternative Course of Action #5

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Executive Summary

The NuriAsia, Inc is known as one of the richest companies in the country. It is one of the
large producers of different products especially the condiments such as Mang Tomas, UFC,
Silver Swan, etc. Despite of its rich history and being one of the leading companies, it still has its
own issues or problem specifically between the workers and the company itself. The main
problems are the abuse to workers such as unjust salary deduction, contractualization, and lack
of protective gears and equipment for the workers. The company did not follow laws that aims
to protect the rights of the workers.

The main objective of this case study to gather information regarding the issue of the
company and the workers. It also aims to suggest possible solutions to solve the said issue.

From in-depth discussion about the case study, we found out how unsteady the
Nutriasia’s control environment. There were questionable treatments, and the incident also
revealed the regulators’ shortcomings in doing their roles. We recommend them to assess their
manuals and policies inside the company whether they are complying to the standards given by
the government agencies and authorities. Both involved parties, the employees and the
company should lay the complaints in a legal process. And for a justified judgement, the
authorities should be accountable as well in investigating the case and strengthen its reliability.
There are additional concrete solutions laid for improvement and orderly of an organization
which will impact positive outcome with a manageable cost.

To sum up the study, Nutriasia abused its employees and produced worries to people knowing
they are one of the leading brands in the Philippines. Ethics should be formed inside the
company by treating employees with what they deserve. The future employees who will be
under the company’s manpower should feel secured and safe. Minimum wage was established
because owners seemed to give lesser appreciation to employees and the responsibility as an

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

owner is not limited to paying salaries but giving incentives also and promotion when earned.
Nutriasia’s profit can accommodate employees who worked hard to have a regular job.

Overview of the Case

NutriAsia,Inc, is a food company in the Philippines and is the leading producer of

condiment products in the country. Their best-known products are Datu Puti, Mang Tomas, UFC
Katsup, and Silver Swan. The company has a total of 116 distributors, both locally and
internationally on 2019.

In 1991, NutriAsia,Inc was founded Joselito Campos and it started out as Enriton Natural
Foods, Inc. with an only regional brand named Nelicom that produces different sauce such as,
catsup, hot sauce, soy sauce, and fish sauce. Later, the company acquired Jufran and Mafran
and engaged in a joint venture with Acres & Acres which is the producer of many known brand;
datu puti vinegar, Papa Banana Catsup, and Mang Tomas. Eventually, the joint venture between
the company marked their first big leap and named as Southeast Asia Food Inc. (SAFI).

In 1994, SAFI acquires Amihan, also a regional brand known for vinegar and sauces
which increased the growth of sales and serves as the first distribution affiliates of the
company. Furthermore, they also acquired UFC in 1996, which is an iconic brand among
catsups. After many acquisitions of different companies, they went into a period of
consolidation from 1998 – 2000. The company’s streamline factory sites are reduced from
fifteen to five. The consolidation improved the profits and re invested to the growth of the
company products such as catsup, sauces, and other condiments. Then, SAFI started a joint
venture with its first foreign partner, HG Heinz of the USA. Heinz – UFC handled catsups and
sauces while the other products are handled by SAFI. Eventually, Heinz – UFC and SAFI later
became subsidiaries of NutriAsia,Inc. Although, the joint venture with Heinz was short-lived, it
helped the company acquire new technologies and business processes from their foreign

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

partners NutriAsia,Inc built four plants that produces world class brand wherein they
consolidate the production of their condiments, catsups, and sauces.

With world class manufacturing facilities and happy people working behind its brands.
The company aims to not only produce the best quality products that put Pinoy cuisine in the
map but also bring joy to every meal experience.

In spite of of its rich history, the company also encountered problems or difficulties
most especially the relationship between the workers and the company itself.

Viewpoint
In the business case study, we used the viewpoint of the CEO and Chairman of the
NurtiAsia Group of Companies, Mr. Joselito D Campos, Jr.

Time Context
February 2018, DOLE had ordered NutriAsia to place over 900 workers in permanent
positions. It found that NutriAsia's contractors were engaging in labor-only contracting
practices. DOLE said that NutriAsia was found violating labor laws and general labor standards.
When they created a union among B-Mirk employees doing outsourced jobs in NutriAsia in
April, officers were laid off. Jessie Gerola, president of Nagkakaisang Manggagawa ng NutriAsia
Inc, led 200 people composed of workers and supporters, in holding a picket line across the
factory in Marilao in June 4. June 14, hundreds of policemen and security personnel guarded
the gate of NutriAsia to enforce the said TROs. Those who joined the picket line were forced to
leave. A regional trial court in Bulacan had issued two temporary restraining orders (TROs)
against the strike earlier in June. Police then dispersed workers assembled outside the factory
last Thursday, June 14, for violating the TRO.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Case Facts

NutriAsia,Inc is the manufacturer of several known condiments in the Philippines such

as Datu Puti, Mang Tomas and UFC. In June 4, the president of Nagkakaisang Manggagawa ng
NutriAsia Inc. named Jessie Gerola, led 200 outraged workers and supporters in protesting for
their rights and conditions. What caused this is the company’s issue of employee’s rights and
unjust wages. Jornell Quiza, a worker in NutriAsia,Inc since 2010, hired by a contractor, shared
his experience working for the company. He was continuously being transferred to different
work tasks with a heavy workload, only to be paid P380 a day. Not only Quiza but the most of
the workers in NutriAsia,Inc has been experiencing this unjust treatment and unhealthy work
conditions. Employees work for 12 hours a day and sometimes work extra shifts just to have
enough money to sustain their daily needs. Their salary only reaches the minimum worker’s
wage yet they pay for their own uniforms and protective gears for more than P1,000 each,
without reimbursement over the years though it has been demanded by workers. Also with
added deductions for their health maintenance organization (HMO) and “coop share” resulting
to workers having a much lower take home pay. NutriAsia,Inc also practices contractualization,
which is already illegal under the Labor Code and Labor Department order 174. extending
regular employment agreements only to less than 10 percent of the employees in NutriAsia,Inc.
Several organizations called out NutriAsia,Inc for its labor dispute, even boycotting the
company’s products.

During the strike, the workers and supporters who joined in protesting for their rights
were violently dispersed by NutriAsia’s security personnel and the police. The security
destroyed their makeshift camps and violently forced the workers out. Protesters laid to the
ground hoping the police would not hurt them. Instead of using safe and appropriate ways to
exercise restraint, the security and policemen resorted violence and went out to beat the
protesters. A statement from one protester was revealed to the public: “They didn't stop. As
long as there was someone lying there, they will continue to hit them.” Seventeen people,

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

workers and supporters included, were detained, while several were injured and some had
gone missing.

The Problem

Root Cause
Analysis
Model

Figure 1. Root Cause Analysis Model

The company, NutriAsia,Inc, violated the 1987 Constitution to “protect the rights of
workers and promote their welfare.” Section 3, Article XIII of the Constitution also provides that
workers shall be “entitled to security of tenure, humane conditions of work, and a living wage.”

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Letting employees work overtime shifts with a heavy workload only to be paid an unjust
amount that is only classified as the minimum working wage in the Philippines and is
insufficient to sustain their necessities.

The regularization of workers in NutriAsia,Inc also became an issue because remains to

be insufficiently exercised and regulated by the company. Only 10 percent of the employees’
employment agreements are regularly extended. NutriAsia,Inc ignored the compliance order.
Several workers has been working only as contractual employees for 10 years.

The DOLE compliance order acknowledged not only the contractualization of workers
but also other several violations, including: non-compliance on the Occupational Safety and
Health Standards due to non-provision of protective gears to employees. According to the DOLE
compliance order, NutriAsia,Inc also violated Article 113 of the Labor Code of the Philippines;
deducting from their salaries as payments for their uniforms. Deductions for their uniform are
also prohibited under Labor Advisory No. 11, Series of 2014.

The main problem is the abuse to the workers due to the unjust salary that they receive,
the contractualization that is happening within the organization despite of how long they are
working in the said company. There is also a lack of protective gears for the employees and
deduction of salary due to the uniform expense. Proper and lawful action from a big company is
the right of every worker in our country.

Objectives
This case study aims to gather information about the NutriAsia Inc, is facing between
the company and worker relationship mainly to the low wages, unlawful deductions, and
contractualization. This will also determine possible solutions to resolve the issues of the
company.

Specifically, it seeks to:

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

 Identify the impacts of the low wages, unhealthy working conditions to the employees,
and lack of protective gears, and the unjust deduction of salary due to the uniform
expense
 Provide possible actions and solution that the NutriAsia Inc, could adopt

Alternative Courses of Action/Criteria

ALTERNATIVE ADVANTAGE DISADVANTAGE

 Compliance with the  This will ensure the  This will increase the
safety of the workers operating expense of
occupational safety
of NutriAsia Inc. the company.
and health standards,  It will promote an  It will promote the
efficient and safe good image of the
by providing personal
working environment company as they take
protective in the company. care of the safety of
the workers.
equipments(PPE) to
the workers and
giving them the
hazard fee for their
job.

Table1. First Alternative course of Action

ALTERNATIVE ADVANTAGE DISADVANTAGE

 Regularizations of
those employees who
performed well during
their contractual
period as a worker of
 This will help promote
a healthy working
environment in the
company.
 This will lead to high
efficiency of work
since employees are
well trained and
 This will increase the
salary expense of the
company since they
should increase the
benefits given to all
regular employees of
the company.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

the company. experienced with

their jobs.
 The company will get
a good quality of
manpower as they do
the work efficiently
and effectively.
Table2. Second Alternative Course of Action

ALTERNATIVE ADVANTAGE DISADVANTAGE

 It will clear out the  It will be a big
 Public advisory or rumors and adjustment for the
allegations with the company to follow
promotion that the
company that will the right and just
company is show that they are standards given by
complying with the strictly following the the DOLE.
given standards of
Labor Code of the DOLE.
Philippines given by  It will clear out the
name and reputation
DOLE.
of the company that
was damaged
because of different
hate comments given
by the netizens
because of the issue.
Table3. Third Alternative Course of Action

ALTERNATIVE ADVANTAGE DISADVANTAGE

 This will correct the
 Settle all the lawsuits unlawful actions of
the company.
filed against the
 This will help to clean
company. the reputation and
image of the
NutriAsia, Inc.
 It can also destroy the
image and reputation
of the company based
on the results of the
judgment of the
court.
 This will decrease the

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

number of possible
investors of the
company.
 This will be an
additional expense for
the company.
Table4. Fourth Alternative Course of Action

ALTERNATIVE ADVANTAGE DISADVANTAGE

 This will empower his  Different issues and
 The CEO of the credibility as the CEO rumors may arise.
company, Joselito D.
of the company.  Hates and negative
 This will help promote comments may be
Campos, Jr should his good image as the received from the
acknowledge their CEO of the company netizens and valued
who has empathy customers of the
shortcomings and with the workers of company.
mistake and assure all the company.
the workers that they
will do the actions
regarding the said
issues.

Table5. Fifth Alternative Course of Action

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
BUSINESS ADMINISTRATION DEPARTMENT

Recommendation

Aside from the company who clearly mishandled many employees for many years, the
regulators should see the issue as a wake-up call to properly assess business entities. I believe
that the issue will not exceed to the point where people get hurt physically when the
authorities help them in the first place. The situation seemed that protesting was the only
resort of the employees. Regulators must do their job well because, I know right now many
employees are suffering because of the injustice inside their working field. Human rights and
protection for laborer should be practiced in an entity either small earning or big earning
company.

Conclusion

In conclusion, NutriAsia,Inc really committed miscreant actions toward their employees.

The action triggered the employees to went against the organization. The problem is not
limited to the contract and agreements between them. The ethics in work and the foundation
of the company reflected to the situation that their control environment is not efficient. The
regulators and authorities ordered the company to regularize 80 workers who suffered many
years as contractual. The incident became larger after a violent dispersal, the situation of the
people who were physically harassed were also being examined and added to the issue and on
how the organization handled the protest. After all the execution to the problem was objected
to laws and the regulators.

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References
Bautista, A.R. (2018, June 17). LOOK: Why NutriAsia Workers are on Strike. Retrieved from:
https://rappler.com/nation/reason-nutriasia-workers-on-strike?fbclid
Bautista, A.R. (2018, June 17). DOLE Condemns Violent Dispersal of Nutriasia Workers.
Retrieved from: https://rappler.com/nation/nutriasia-workers-strike-violent-dispersal-
dole
Cabico, G.K. (2018, July 29). Philippines: Scores Injured, Others Missing After Violent Dispersal of
NutriAsia Workers. Retrieved from: https://www.business-
humanrights.org/en/philippines-workers-at-nutriasia-factory-face-lawsuits-and-suffer-
injuries-after-dispersal-of-protest
Cellona, J. (2018, June 18). Nutriasia Must Regularize 80 Workers, DOLE Says. Retrieved from:
https://news.abs-cbn.com/business/07/03/18/nutriasia-must-regularize-80-workers-
dole-says
De Guzman, C. (2018, June 16). NutriAsia Denies Manpower Firm's Alleged Illegal Contracting,
Subcontracting. Retrieved from:
https://cnnphilippines.com/news/2018/06/16/nutriasia-illegal-contracting.html

Appendices
Letters /Correspondences/Pictures

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