Paul Yu Phils Corp.

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Who owns it

Paul-Yu Industrial Corporation

What they produce

Decorative home lighting and furniture

Who they produce for

Pier 1 Imports, Home Center, Conforama

Private Label: TAROGO

Address

Mactan Export Processing Zone in Lapu-Lapu City, Philippines

Number of workers

2,500 employees

Summary of Problems at the Factory 

  • Unjust suspension of workers connected with the workers association
  • Implementation of three-day workweek for regular employees in December 2008 but lacked proper documentation and due notice with the Labor Department
  • Outsourcing 40% of production to contractors
  • Using contracted labor from AVI Amor Vil Inc. agency which is not registered with DOLE (Philippines Labor Ministry)
  • Continuously renewing contracts for contract workers who have worked at Paul Yu for years instead of making them regular workers
  • Lack of payment for holiday and break time
  • Non-remittance of SSS deductions for agency workers
  • Non-implementation of paternity leave

Union Information

Workers have initiated a work stoppage in support of suspended leaders of their worker association. These seven leaders were suspended from work for an "illegal strike" after they filed a case against management's numerous unfair labor practices.

The Paul Yu workers association through its president Willy Dondoyano and the Partido ng Manggagawa (Labor Party-Philippines) is appealing for solidarity.

Communication with Buyers

ILRF has sent letters to Pier 1 Imports and HomeCenter.com requesting immediate attention and investigation into this situation.

Reports and More Information 

Conclusion

This factory case has ended because the workers decided to take the offer of management of a small severance package.  The workers made this decision because they were in desperate need financial support given that they had been out of work for over a month.  Unfortunately Pier 1 Imports need little to actually implement its code of conduct or hold the factory accountable for this clear case of freedom of association violations.