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You are the child of the owner (COO) as well as head of operations for your family-controlled corporation, Sawsawan Inc., which specializes in the manufacture

You are the child of the owner (COO) as well as head of operations for your family-controlled corporation, Sawsawan Inc., which specializes in the manufacture of condiments such as ketchup, fish sauce, chili sauce, and vinegar. Sawsawan presently has a manufacturing plant in Bulacan with one bottling line. Sawsawan does not sell directly to consumers instead their clients are mostly groceries and supermarkets with goods being sold in bulk. Some of the rank-and-file employees found in your manufacturing plant are the following:

  • Mixers: these are the workers who would manually dump bags of ingredients in precise measurements in the mixing vat while the floor engineer operates the machine in the control office.
  • Bottle feeders: workers who would manually feed bottles on the bottling line which is a machine that acts as a conveyor belt which fills the bottles with condiments, adds the label and places a cap on each bottle.
  • Finance checkers: these are the workers who check the delivery documents and ensures that the right amount of goods are loaded and shipped by delivery trucks en route to customers before they leave the loading area of the plant premises.
  • Security personnel: these are the workers assigned in the plant premises to guard against theft.
  • Delivery drivers: These are the drivers of the delivery trucks used to deliver the goods from the plant to the customers.
  • Account settlers: These are the employees store, keep and record all sales information of your customers, and process their orders and respective payments.

Sawsawan is looking to reduce its production costs in order to be more competitive in the market. The management team is pondering whether some of the job functions above can be contracted out. As head of operations, you've been tasked to make a recommendation on the following:

  1. Taking into consideration business and legal reasons, which of the job functions stated above should you contract out? Explain fully your reasons. If there are none, state your reasons as well.
  2. Assume that at least one job-function would be contracted out. What are the requirements that Sawsawan and its selected contractor must abide by in order to ensure that Sawsawan will not be accused of "labor-only" contracting?
  3. If some job functions would indeed be contracted out resulting in the termination of employment for some, describe to the management team the necessary substantive and procedural due process that Sawsawan must follow to ensure that their termination would not be considered as an illegal dismissal.

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