MACHINES and snack products in the production area of W.L. Foods Corp.’s factory in Valenzuela City. The facility is under investigation for allegedly using an unauthorized piece-rate or 'pakyawan' system that may have denied workers appropriate wages.
Raffy Tulfo (Facebook Page)
The hands that pack the nation’s favorite snacks (Muncher, Corn Bits, Cheez-zum) may not earn enough to buy them.
W.L. Foods Corp., a well-known snack manufacturer, is under investigation after the Department of Labor and Employment confirmed it has been compensating workers through a piece-rate system known as pakyawan.
Officials say the company has not secured the required clearance from the National Wages and Productivity Commission to legally use such a pay method.
According to Senate Labor Committee Vice Chair Raffy Tulfo, one employee reported allegedly earning P400 per day despite working 12-hour shifts.
DOLE has stated that for that length of work, the legally mandated wage is at least P1,048 per day.
DOLE has since ordered W.L. Foods to halt the use of the piece-rate system until proper authorization is obtained.
In a separate inspection, IFP Manufacturing Corp. in Caloocan was found without workers onsite.
The company also allegedly failed to present records of employee benefits, such as 13th month pay and service incentive leave during a Senate consultative meeting on 29 May.
Both companies remain under administrative review.
No formal charges have been filed as of posting time.
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