Bagong Hari, Dating Ugali - Repost from Horacio Paredes, Abante: Attention: Mr. John Miller

Sabi nila, kapag bago ang pinuno ng isang organisasyon, kadalasan nagbabago rin ang sistema ng pagpapatakbo. Natural lang daw ito dahil lahat ng namumuno ay may kani-kanyang personalidad na lumalabas sa estilo ng pamamalakad. Kaya ‘pag bago ang hepe, kabado ang mga empleyado.

Subalit para sa mga distributor sa Metro Manila at Central Luzon ng isang kilalang banyagang kumpanya na gumagawa ng mga produktong pagkain tulad ng kape, tsokolate, gatas at iba pa, ang pagpasok ng bago nilang hepe ay tila magandang balita. Inaasahan kasi nila na ang bagong dating na presidente ng kumpanya ay hindi magiging tulad ng pinalitan nito. Pinalagay nila na matapos ang mahabang panahon, mabibigyan na ng multinational company ng kaukulang pansin at pagkilos ang kanilang mga lehitimong reklamo.

Kasi naman, milyun-milyong piso bawat distributor ang nawala sa kanila dahil sa pagmando ng Regional Sales Manager (RSM) ng kumpanya na sila’y magbigay ng sampu hanggang dose porsyentong diskwento sa isang wholesaler o tagabenta ng mga produkto sa mga supermarket at mga grocery.

Ang karaniwang patakaran sa mga diskwento ay apat na por syento lamang para may kikitain din ang mga distributor. Pumayag silang magbigay ng diskwentong sobra rito dahil sila’y pinangakuan ng RSM, sa pamamagitan na liham sa letterhead ng kumpanya, na ang multinational ang sasagot sa anim hanggang walong porsyentong pagkalugi nila.

Sa dagdag na diskwentong kanyang natanggap, malaki ang kinita ng pinaborang wholesaler dahil ang mga produktong nakuha niya ay kanyang ibinenta sa napakababang presyo sa Metro Manila. Sa ginawa niyang ito, umangal ang mga Metro Manila distributor dahil hindi nila kayang pantayan ang mababang presyong binigay ng pinaborang wholesaler sa mga supermarket at grocery. Nang sila’y umangal, sagot ng opisyal ng multinational, “Problema niyo na ‘yan.” Tikom-bibig na pilit lumaban sa pagbenta ang mga napagsabihang distributor pero talagang lugi sila.

At habang nagulumihanan ang mga Metro Manila distributor, nag-alboroto naman ang mga taga-Central Luzon. Dahil ni anino ng pangakong ibabalik na diskwento ay ‘di nila naaninag! At lalong sumabog ang kanilang butse nang ang mga tsekeng pinambayad sa kanila ng pinaborang wholesaler ay nagsitalbugan! Eto pa ... ang mga tseke ay nasa pangalan ng RSM! At nadiskubre nila na ang lalaking may-ari ng pinaborang wholesaler ay asawa pala ng RSM!

Habang nagtatago ngayon ang RSM, tinatantiyang ang pagkalugi ng mga distributor sa Metro Manila at Central Luzon (dahil sa kanyang ginawang panloloko) ay umaabot sa isang bilyong piso. Nawalan din ng trabaho ang daan-daang kawani ng mga distributor dahil sa kanilang pagkalugi.

Parang mga Poncio Pilato, todo hugas-kamay naman ang mga opisyal ng multinational company dahil wala raw silang kinalaman sa mga kagagawan ng kanilang RSM. Idemanda na lang daw nila ang ngayo’y ‘di na matagpuang babaeng executive. Kaya lahat ng mga naganap na usapan ng mga distributor sa noo’y presidente ng multinational ay walang pinatunguhan.

Pasok ngayon sa eksena ang bagong hepe na pumalit sa dating presidente na nabigyan ng assignment sa ibang bansa. Laking asa ng mga distributor na mas magiging maunawain ang bago nilang kausap. Maling-mali pala sila, dahil sa halip na umusad ang kaso patungo sa pagkakasundo, ang gusto ng bagong presidente ay bumalik sa simula, o back to zero ang mga usapan!

Hindi pala laging totoo na ‘pag may bagong hari, bagong ugali. Sa panig ng mga distributor, may bago silang katunggali. Para sa akin, dapat na nilang isumbong ang mutinational sa korte, baka sakali doon sa sala ng hukom ng kapwa-Pinoy ay mayroon silang makikitang katarungan na hindi nila makakamit sa kamay ng mga dayuhan.

***

It is expected that when a regime change happens, it is always for the better for all stakeholders, large or small. Apparently, in this case, the new guy is bringing in progress - for them only. WTF?!

Mr. New Leader, you have the golden opportunity to bring in the necessary positive changes, why haven't you done that? Your company is still denying accountability and responsibility in the happenings among your third party partners and your former workers. It may cost you but there is always a price for doing the right thing. It takes a REAL leader to make the tough call and correct all the wrongs in spite of its cost. Do not sweep all these things under the legal rug. Your lawyers are advising you the wrong things just to cover their miserable asses. It is just one bad advise to a bigger bad advise. Before you know it, the mistakes of your advisers will snowball into something bigger and something uncontrollable. By then, you would just wish that you fixed it now.

There is still time. Use it.

Paul Bulcke: Legal or Moral? Hmmm. Sounds Familiar!

"...While Villar maintained that he did not commit a crime, the party-list representative said the charge was not about legalities, but about ethics, which may not necessarily pertain to a criminal offense.

"...He should face such cases. I share the view that if you want to be President, you should act responsibly and show leadership,' he added.

--excerpt from the Philippine Daily Inquirer Article, 'Villar should face music, says worried Ocampo'

"...We can translate this as follows: 'The noble man places honor before self-interest; the lowly man puts self-interest before honor.'

".. Their moral content remains the same: They prove that the highest official of the land violated public morality. He placed his own self-interest ahead of the public good.

--excerpt from the Philippine Daily Inquirer Article, Adulterer, yes; plunderer, no

"...Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organisation

--excerpt from the Nestle Corporate Business Principles

***

I loved the last article when I said, 'Hmmm. Sounds Familiar,' simply because the line captures quite clearly the sheer absurdity of what certain legal (un)minds think.

I am by no means a lawyer and cannot presume to tell what is correct or what is not from a legal perspective. I do know, however, that the underlying foundation for everything legal is the Moral and the Ethical. However, as in the excerpts above, there ought to be some sort of higher standard. Problems arise as most guilty people have the tendency to equate morality, not quite so subtly if I may add, to legality, most especially if there is some perceived clever (or even not so clever) escape. Cleverness, however, will never replace Clarity.

Let's veer away from the examples above and let's just examine two examples of why Morality shouldn't be reduce to Law. (Sorry, lawyers, sue me if you want!) Firstly, let's take a look at abortion in the 1st world countries. Indeed, it is the Pro-choice versus Pro-life arguments which is a very explosive topic from Roe vs Wade until now. For me, the answer is simple. While abortion may be legal in some US States and some countries, it is to me, the murder of an innocent human being. Legal, yes. Moral, a resounding no!

Secondly, let's take a look at a somewhat perceived to be less controversial issue than abortion - whaling. There is an international moratorium on commercial whaling managed by the International Whaling Commission to stop the dwindling population. However, countries such Norway, Iceland and Japan say that it is legal to do commercial whaling! Funnily, these countries have a pretty substantial industry devoted to the hunting of these creatures. Strictly following the moratorium will obviously result in heavy economic losses to their industries. The higher standard is to simply respect the environment but what is legal is that the countries CAN whale hunt. Tsk, tsk.

***

I cannot say if Mr. Villar is guilty or not but as long he continues to be clever and not directly confront his peers and the people, I will always have doubts.

As for Nestle, the answer should already be obvious as it is contained in their own principles. Sadly, the clowns who brought all this shit to you are the ones covering their asses with either silence or cleverness. Perhaps it is time for the international body to step in and give the higher standard to their managers who are obviously bereft of it in their attempts to sweep their mistakes under the rug.

Remember, clarity will always prevail over cleverness. And moral versus legal? You be the judge.

It Really IS a Pattern!!!

I did not realize that when I gave out my email address that I would get a lot good words and contributions from my dear readers. It's pretty difficult for one person alone to look for various publicly available evidence in the web regarding our dear giant food manufacturer friend. But thanks to all of you (I hope that thanking you in public will be better than in private), I can now post several things!

This article was emailed by *********. As I promised, anonymity is guaranteed!

Anyway, this shows that the pattern of unfair labor practices, misleading consumers and businesses, using inferior products and passing it off as good is really global in nature! Attention DOLE, DTI, DOH! Look at the on-going strike in Laguna. Look at exploitation of Filipino SME's. Look at the discreet pull-out of various products throughout the years. Ooops. Discreet pull-out of products?!!!! That story will be told another day. In the meantime, please take a look at this article:

Another Nestlé Scandal

Nestlé's money grabbing demand on Ethiopia has refocused attention on the activities of this Swiss based multinational, the largest food processing company in the world. Nestlé is at the centre of another scandal. On 22 November the DAS security police ordered Nestlé Colombia to decomission 200 tons of imported powdered milk. The milk had come from Uruguay under the brand name Conaprole, but the sacks had been repackaged with labels stating they had come from Nestlé's Bugalagrande factory, and stamped with false production dates of 20th September and 6th October 2002. The real production dates were between August 2001 and February 2002. The discovery of another 120 tons on 6th December with similarly false country of origin and production dates, points to systematic fraud. Yet Nestlé responded indignantly, apparently it has been the victim of a set up, and in any case powdered milk has for industrial purposes an eighteen month lifespan. This bluster begs the obvious question, why relabel at all? The discoveries caused a stir, with senators insisting the Attorney General conduct a full inquiry leading to prosecutions. The quality of Colombian justice, especially its partiality towards multinationals, is such that this must be in question. Nonetheless Nestlé has been sharply condemned. Senator Jorge Enrique Robledo charged it with using sub-standard, contaminated milk, "a serious attack on the health of our people, especially the children". The latest outcry amplifies persistent complaints from the trade unions that Nestlé does not respect human rights. Since the 'dirty war' erupted in the early 1980s, Colombian trade unionists have been on the front line of targeted, but unofficial, repression. The Food and Drink Workers Union SINALTRAINAL was formed in 1982. Eight of its members working at Nestlé have been assassinated. The principal perpetrators are the paramilitary death squads. Their links with official entities are an open secret. For example, the Autodefensas Unidas de Colombia (AUC) arrived in the Cauca valley in 1999. Human Rights Watch reports that it was the Colombian army who set up this new AUC front (http://www.hrw.org/reports/2001), which declared local union leaders as military targets. Within six months six trade unionists had been assassinated, including SINALTRAINAL member Omar Dario Rodriguez Zuleta in Bugalagrande on 21 May 2002. There is no evidence connecting Nestlé with this. However the logic of the violations, to eliminate trade unionists and other social movement activists, corresponds with the company's own aggressive policy to liquidate the union. In late 2001 management at another Nestlé subsidiary 'Comestibles La Rosa' threatened workers that they must either renounce union membership or lose their jobs. In February 2002 the union formally presented demands to Cicolac, Nestlés milk processing subsidiary. Management tried to break the collective agreement covering 400 workers, sack 96 workers and break the contracts of another 58 workers so that there jobs could be contracted out through labour agencies. Sub-contracting and cheaper inputs are two aspects of the same drive to cut costs. This brings us back to the cheap powdered milk imports. According to SINALTRAINAL, Nestlé-Cicolac's new policy 'has generated misery for small and medium dairy farmers and for peasants'. One area known as 'Little Switzerland', where livelihoods depend 90% on milk output, has been devastated. SINALTRAINAL is a very good example of how workers in the 'Third World' have taken the initiative in resisting the multinationals. As they say: "Nestlé converts the factories into camps for the public security forces in order to create terror in the community, destroy the unity of the workers, and misinform the members of the union, with the goal of putting them against the leaders and destroying the movement ... This reality urgently demands the globalization of solidarity against the globalization of misery, oppression, and death of the communities." (OMFG!) These developments present a challenge to the movement in Britain, where labour relations with Nestlé have been relatively benign. Nestlé even had a stand at last year's TUC annual conference, jointly staffed by corporate executives and union representatives. It is time for a more robust and independent approach, based on relationships with unions like SINALTRAINAL in Colombia, and elsewhere to make common cause against a rapacious multinational. http://www.colombiasolidarity.org.uk/content/view/175/54/

The Real Life Soap (or shall I say, Coffee) Opera as written by Yutani Weyland (http://yutaniweyland.blogspot.com)

Monday, December 21, 2009

Nestle Philippines: Good scheming for a good life

Nice tag line. You can bet that they mean it in every sense of the words.

From 2003 to 2007, a distribution company operating in the Northern Quezon City area was illegally terminated for its services by Nestle Philippines, Inc.

Here is an overview of what is happening now not only to that Northern QC company but many others all over the country.

Nestle lures businessmen to become Nestle distributors that start with priming activities such as large amounts of actual start-up promotions, incentives and assistance (i.e. monetary, equipment, or services). Once a distributor takes the bait, they are slowly reeled in, with promising rates of return and greater rewards. With good early net earnings, distributors were encouraged to invest more money into the distribution business.

Once further engaged, Nestle systematically and deliberately withdraws these incentives. The distributor then has to play the investment game with the rules unfairly set in the favor of themselves where more often than not lead's to the distributor's demise.

When distributors are irretrievably committed in substantial financial manpower, and equipment investments, Nestle bullies them into absorbing the entirety of the financial risks. With this particular distributor, it started in 2006. All the hard work is passed on to the distributors through cleverly worded contracts of adhesion.

Fast Moving Consumer Goods (FMCG) distribution is generally a high volume low-margin business. Since trading and retailing in the Philippines is dominated by small and medium scale businesses, the average distributors of most FMCG manufacturers only have PhP 2-5 million in paid-up capital.

When its inventories financing was transferred to local banks in 2006, Nestle started to unfairly push and require its distributors to break barriers in order to sell more of their products without assuming any of the risks. Nestle then began to impose unreasonable sales targets and increased them geometrically ensnaring the distributor into a money trap.

This is their story and these are the players in the game:

1. John Miller - Current President and CEO of Nestle Philippines Inc. (NPI). Problems did not occur under him but being unfamiliar with the situation or perhaps covering his own ass, he does not want to "take the bull by the horns". He allegedly lets his committee decide what should be done, whether right or wrong, especially with how they are trying to weasel their way out of the Central Luzon incident. Could be guilty of sin of omission. Must step up and be morally upright to salvage reputation.

2. Nandu Nandkishore - Former President and CEO of NPI, now global head of infant nutrition. Problems exploded during his tenure. Perhaps, he is the instigator of the "weasel-your-way-out-by-using-SIZE-to-bully-the-small-Filipino-entrepreneur" strategy. Managed to escape by being transferred out to Switzerland. Perhaps, he is washing his hands now and leaving it up to John Miller to fix.

3. Shahab Bachani - Current Sales Director of NPI, to be transferred to Brand Marketing next January. Always blames the distributor for any problem and never himself nor his company. Perhaps, the main proponent of "Hit Target at All Costs" mentality leading to massive discounting (yet until about September, he denies that massive discounting exists). Pretends he wants to listen to the problem, concerns and opportunities of the distributor but apparently never retains anything. Possibly autistic.

4. Atty. Belen Caberte - Former Legal Chief of NPI, now serving as legal consultant to fix the mess she partially was responsible for. Reputation for being an excellent labor negotiator by allegedly bribing and granting favors to labor leaders. Purported NPI policy maker of "Using-your-own-money-against-you-to-make-you-sign-a-general-quitclaim" passing it off as a standard policy and therefore is morally correct. Also heard to direct their external legal team to delay cases against Nestle to wear out the poor Filipino victim.

5. Atty. Russell Andaya - Current Legal Chief of NPI, former second in command of Atty. Caberte. Apparently does whatever the Caberte and the board says.

6. Peter Noszek - Chief Finance Office of NPI. Possibly the one of about three sane figures in the NPI board but could be overruled by the other clowns. Excellent marathon runner.

7. Alejandrina Puno - Director of Corporate Communications. Active member of PANA board - "Truth in Advertising" yet was found out to contact by various columnists, opinion writers and editors of various newspapers to stop writing "negative" things by threatening to pull out Nestle's advertising from various broadsheets. She clearly violated the standard of PANA of not letting advertising budgets curtail journalistic freedom.

8. Atty. Aileen Cero - Legal Office of NPI. Allegedly notarized a document she negotiated that is in clear violation of notarial rules on conflict of interest. Implementor of the "Using-your-own-money-against-you-to-make-you-sign-a-general-quitclaim" NPI standard policy. Has pending disbarment case against her. Allegedly, was doing forum shopping by filing a case in a different court in relation to the pending disbarment case in the Supreme Court.