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Manila Bulletin devider Philippines devider National devider Tulfo, DOLE inspect snack company over alleged illegal 'pakyawan' pay system

Tulfo, DOLE inspect snack company over alleged illegal 'pakyawan' pay system

Published May 30, 2025 11:27 am

At A Glance

  • Senator Raffy Tulfo and the Department of Labor and Employment (DOLE) inspected W.L. Foods Corporation in Valenzuela after worker complaints revealed the company was allegedly using an unauthorized piece-rate system and underpaying employees, prompting orders to stop the practice and provide back wages.
A snack company in Valenzuela City is under scrutiny for allegedly implementing a piece-rate pay system without proper authorization and committing other unfair labor practices, prompting an inspection by the Department of Labor and Employment (DOLE) and Senator Raffy Tulfo.
The investigation stems from complaints filed by workers through Raffy Tulfo in Action (RTIA). Following the reports, Tulfo, Vice Chairman of the Senate Committee on Labor and Employment, coordinated with DOLE to inspect W.L. Foods Corporation in its Valenzuela facility.
During the on-site inspection, DOLE confirmed that some workers were being paid only ₱400 per day despite being employed for over a year and still classified as casual workers. Others under a piece-rate or "pakyawan" system said they had to work up to 12 hours a day to earn ₱700.
However, W.L. Foods is not listed among companies authorized by the National Wages and Productivity Commission (NWPC) to operate under a piece-rate scheme. Based on DOLE’s wage computation, a worker doing 12 hours of labor should be earning P1,048 per day.
This discrepancy means some workers were losing around P348 daily due to unpaid overtime.
Tulfo instructed DOLE to conduct a deeper probe into the company’s labor practices and mandated W.L. Foods to provide back wages to affected employees. He also pressed for the regularization of long-time workers who continue to receive below-minimum wage compensation under casual status.
DOLE has since ordered W.L. Foods to cease using the piece-rate pay system unless the company obtains proper clearance from the NWPC.
In a recent Senate consultative meeting, Tulfo also addressed W.L. Foods’ legal counsel directly, urging the company to fulfill its obligations to workers, a commitment the counsel agreed to.

Related Tags

Raffy Tulfo DOLE labor and employment
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