SMC to help biz partners meet labor, health, safety laws

MANILA, Philippines - In a landmark move seen to improve working conditions for an estimated 5,000 workers employed by its business partners, San Miguel Corp. (SMC) signed on to a program of the Department of Labor and Employment (DOLE) that requires small businesses to comply with the government’s labor, safety, and health standards.

Under the Kapatiran-Work Improvement for Small Entrepreneurs (WISE) project, San Miguel agreed to engage only the services of firms who are “fully and continually compliant” with the standards, which include workers’ wages and benefits as set forth by labor laws.

“We are hopeful that this will create a huge impact in the lives of many workers employed by our business partners. San Miguel is a big organization and we are in a unique position to make a difference because of our size and the number of companies whose services we engage,” said Ma. Cristina Menorca, SMC corporate human resources head.

A memorandum of agreement was signed by SMC, Labor Secretary Rosalinda D. Baldoz, and representatives from SMC’s business partners, recently.

Under the agreement, the company will require its business partners to submit a certificate of compliance or an interim certificate of compliance, issued by DOLE.

Before getting certified, the company should fulfill a number of requirements including instituting an occupational health and safety program and adhering to the Labor Code and its Omnibus rules.

The company can pre-terminate or refuse to renew current contracts on the grounds of non-compliance. They can also “delist” non-compliant firms from their list of accredited suppliers.

“In SMC, we pride ourselves in being compliant to the highest standards of quality and safety. We also pay our employees the correct wages. We pay the proper taxes. We want our business partners to do the same,” she added.

To entice business partners to enroll in the program, SMC and its various businesses have agreed to adopt the “Big Brother” program, wherein it will help its partners attain compliant status. 

It will provide technical assistance and training to help them improve working conditions, increase productivity, and meet labor and safety requirements.

For its part, the DOLE agreed to temporarily suspend administrative actions against non-compliant firms and provide support and assistance to give them time to gain compliant status, provided they sign up to the program.

SMC, Southeast Asia’s largest food, beverage, and packaging company, is now a highly-diversified conglomerate with interests in oil refining and distribution, power generation, infrastructure, telecommunications, and mining.

For media inquiries, please call: Mary Jane Llanes / Jayson B. Brizuela / Jon Hernandez SMC Media Affairs Group 632-3541 / 632-3504