A Dutch NGO has slammed two leading Philippine pineapple companies over a significant disparity in wages between employees and 'contractualized' workers hired through labor cooperatives.

In its report 'Paradise Lost: The bitter reality behind working in the Philippine pineapple industry', Fairfood International reveals the results of a 2013 survey into Dole Philippines (Dolefil) and Del Monte Philippines Incorporated (DMPI), which together account for 80% of the country's US$322 million industry.

"These 'contractuals' comprise an estimated 85% of the total workforce of the companies and their numbers show an increasing trend. A survey Fairfood performed amongst the companies' workers in 2013 indicate that contractuals earn significantly less than their directly employed colleagues and have less social benefits, even though they perform mostly the same type of operations," the report said.

"In 2013, the majority of the contractuals only received the minimum wage and 24% of these workers received wages that were actually below the official minimum," the report alleged.

"As they [contractuals] are not members of unions or represented in collective bargaining, they are not able to raise their grievances."

In the regions surveyed, Fairfood claims DMPI employees were earning 91.8% more per day than their contractual counterparts, while for Dolefil the difference was 78.4%.

"Their CSR reports give the impression that they take really good care of their workers. They pay them far above the minimum wage, as well as providing them with significant benefits, such as housing, transport and education," the report said.

"That, of course, is wonderful. However, there are approximately 24,000 workers not included in these reports (comprising an estimated 85% of their total workforce) who also work for these companies."

The NGO added the Philippine minimum wage was already "far below" a living wage that would be sufficient for workers to fulfill basic needs for themselves and their families.

"That is why Fairfood is urging Dolefil and DMPI to take responsibility and make positive changes to the lives of the thousands of workers in their supply chains," the report said.

Dolefil is owned by Japan's Itochu Corporation and DMPI is a subsidiary of Singapore Stock Exchange-listed Del Monte Pacific.

The Philippines was ranked as the world's second-largest pineapple exporter in both the fresh and canned segments in 2013.

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