Dolefil protests SGS audit findings on labor policy

GENERAL SANTOS — Fresh produce giant Dole Philippines, Inc. (Dolefil) yesterday denied that it does not comply with labor standards as shown by an audit of Societe Generalle de Surveillance (SGS), saying it was protesting the findings that could deny the firm a global certification on social acceptability.
DOLE claims to be the world’s largest producer of fresh fruits, fresh vegetables and fresh cut flowers, and markets a line of packaged food products. —

DOLE claims to be the world’s largest producer of fresh fruits, fresh vegetables and fresh cut flowers, and markets a line of packaged food products. — www.dole.com.ph

Kevin Davis, Dolefil general manager, sent a statement to BusinessWorld questioning the audit conducted by SGS last March 23-27, saying there were “serious irregularities in the conduct of the audit.”

“This matter is now the subject of a complaint pending before SGS.

Likewise, the company strongly disagrees with the alleged major non-conformance that the lead auditor cited. The company found this to be baseless and therefore has filed the requisite appeal,” the executive said.

SGS, which issues the Social Accountability 8000 (SA 8000) certification, is already in the process of organizing an Appeals Committee to handle the appeal, Mr. Davis added. The Dolefil management expressed confidence the appeal would be resolved in favor of the company.

Dolefil has been an SA 8000-certified company for more than nine years now, starting March 2001. It is one of only six companies in the country that is SA-certified, and holds the distinction of being the first manufacturing company in the Philippines given such certification.

Mr. Davis recounted that the controversy arose after Dolefil recognized the newly elected officers of the Amado Kadena-National Federation of Labor Unions-Kilusang Mayo Uno (AK-NAFLU-KMU).

In the SGS audit report, the newly elected officers were identified as belonging to UR-Dole, although the management recognized them as Amado Kadena. A special meeting by 71% of the union membership last February resulted in the election of the new officers, and resolved to disaffiliate from NAFLU-KMU, Mr. Davis said.

The old officers challenged the legality of the special meeting before the Bureau of Labor Relations where the matter is still pending. The company intends to continue to deal with the new set of officers until the intra-union dispute has been resolved with finality or until a new set of officers has been duly elected by the union membership, Mr. Davis said.

In a letter dated last June 4, SGS said it had verified one major and two minor “non-conformities” against Dolefil in relation to SA 8000 standards. “The major non-conformity has been raised against the standard requirement Freedom of Association … and the two minor [non-conformities] raised were related to Control of Suppliers and Health and Safety,” wrote Marina Piloni, Systems and Services Certification – SA 8000 global product manager.

Jonie A. Valdez, national staff member of NAFLU-KMU, earlier claimed the action of Dolefil to recognize UR-Dole or Amado Kadena was tantamount to union busting. Dolefil was negotiating with UR-Dole despite the fact that a collective bargaining agreement with Amado Kadena-NAFLU-KMU is still in effect until Feb. 10, 2011, Mr. Valdez claimed.

Mr. Davis said the CBA is in place and continues to be respected, clearly demonstrated “by the fact that the company has already implemented the wage increase for the year pursuant to the CBA.”

The expatriate said that as a matter of policy, Dolefil respects the rights of workers to organize, something which is public knowledge in the community and demonstrated by historical dealings with various trade unions as early as the 1960s.

SA 8000 is a voluntary, universal standard for companies interested in auditing and certifying labor practices in their facilities and those of their suppliers and vendors. It is designed for independent third-party certification.

SA 8000 is based on the principles of international human rights norms as described in International Labor Organization conventions, the United Nations Convention on the Rights of the Child, and the Universal Declaration of Human Rights.

It measures the performance of companies in eight key areas: child labor, forced labor, health and safety, free association and collective bargaining, discrimination, disciplinary practices, working hours, and compensation. — Romer S. Sarmiento, Businessworld