Gamma Philippines, Inc.

A Case Study Labor Economics

I.

BACKGROUND OF THE CASE Gamma Philippines Inc. is a worldwide producer of medicine and drugs, one of

the popular ones being Valium. The mother company is located at Switzerland and have several branches worldwide, one of which is located in the Philippines. Gamma Philippines, Inc. does the reprocess and/or repacking of drugs being shipped or flown from the manufacturing branch which is on Switzerland. Reprocessing and repacking are jobs to be done on the branch production department in which Mrs. Abigail Santos is the manager of the said department here in the Philippines. She is consisted by eight subordinates: a warehouse supervisor, four area leaders and three quality control leaders. These areas are classified into: Sample Area, which is in charge of packing and sample medicines for distribution to doctors; Trade 1 and Trade 2 Areas, which is in charge in repacking/packing for the market or for sale to the drugstores; and lastly the Redressing Area which is in charge of checking spoilt or damage drugs where they either reprocessed or eventually burned as a safety measure. The firm, being engages with a manufacturing line of industry, implements policies which have been governed by the company. This policies concern is with regards with: (a) Labor, which is covers those of employee-employee relationship; (b) Job, which is concerned with the efficiency among its workers especially those of handling medicines; (c) Inspection, which comprise those of detecting employees that carry tranquilizers or any other potent drugs; (d) Break time, which includes

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Gamma Philippines, Inc.

A Case Study Labor Economics

snack time on morning and after noon, and a lunch time break; and (e) Quota which is concerned with the trend of productivity level of the firm. Eula Mojica, the group leader of Trade 1 Area, has been working for the firm for almost eight years. She is noted of being efficient as a worker but a negative side about her can be frequently heard. Mrs. Santos office has received a lot of complaints about her due to her obnoxious behavior. Destroying cooperation among employees, being competitive with other areas, defaming other workers and her brutal frankness at times are some of the complaints about Eula. One of the most recent intrigues about her is the mislabeling. Jorge, one of the group members, is in disarray of being terminated due to the false accusation of Eula. He was ordered by Eula to label boxes with 40 x 10 when the actual content is 50 x 10. The mislabeling incident was discovered by the Warehouse department and was put on case to the office of Mrs. Santos. Eula denied the accusation and Mrs. Santos has taken her side. A memo to terminate Jorge has been prepared and currently on pending situation.

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