Human Rights and Labor Practices

We protect labor rights, uphold human dignity, and ensure that fairness and safety are non‑negotiable in our workplace.

At San Miguel Corporation, we recognize that open dialogue and strong labor-management relations are key to sustaining a productive and engaged workforce. We respect and uphold the right of our employees to organize, form unions, and participate in collective bargaining. Guided by these principles, we work continuously to create a collaborative environment where both labor and management thrive, anchored on mutual respect, fairness, and shared accountability.

As of end-2024, the SMC Group had existing bargaining agreements with 36 active labor unions, an increase of two from the previous year. Total union membership also increased by 4%, reaching 5,243 employees and covering 9% of our workforce.

Across San Miguel, each subsidiary maintains a dedicated Labor Relations team that coordinates closely with the Corporate Human Resources–Labor Relations unit. Together, these teams drive initiatives that strengthen labormanagement collaboration while ensuring full compliance with labor laws and regulations. In 2024, we rolled out several key programs designed to reinforce open communication, foster mutual respect, and uphold our commitment to fair and compliant labor practices:

• Expanded compliance assessments for both General Labor Standards (GLS) and Occupational Safety and Health Standards (OSHS), covering SMC facilities and third-party contractors. GLS tabletop assessments involved 843 participating entities (up from 472 in 2023), while OSHS assessments reached 865 entities (from 550 in 2023).

• Continued the 2024 SMC GLS and OSHS Compliance Awards to incentivize adherence to labor and safety standards. We conferred a total of 319 GLS awards (up from 101 in 2023) and presented 354 Safety Milestone awards.

• Enhanced safety preparedness through the 2024 Fire Fighting Skills Exhibition, which saw participation from 193 teams—a notable increase from 149 in 2023—demonstrating the Group’s strengthened safety culture.

• Strengthened labor collaboration and engagement through pocket employee activities, productivity improvement teams, town hall meetings, and anti-criminality information drives across core business units and our Operations, Maintenance and Management (OMM) companies.

• Conducted prompt investigations and resolution of whistleblowing reports and Safe Spaces complaints across business units.

We also remain committed to educating our employees about labor rights. In partnership with DOLE, we organized Labor Education Seminars attended by 1,490 employees. These sessions provided essential knowledge on fundamental labor rights, including security of tenure and freedom of association, helping build a workplace grounded in awareness, empowerment, and mutual respect.

In full compliance with the Constitution and labor laws, the Group upholds policies that protect human rights and explicitly prohibit child labor. Learning workshops were conducted across business units to ensure that all employees understand and uphold our shared responsibility to safeguard human rights and comply with related regulations.

Employee Health and Safety

Safety is part of how we care— for our people, our workplaces, and the communities we serve.

San Miguel Corporation continues to prioritize the health, safety, and overall well-being of its employees through one of the most comprehensive medical benefits programs in the industry. Our Health Maintenance Organization (HMO) plans provide extensive coverage for both major and minor health conditions, with maximum benefit limits tailored to each business unit. Employees can access medical consultations, prescribed medications, and necessary medical devices through onsite clinics located across major facilities, ensuring prompt and convenient healthcare support.

In 2024, we further strengthened our commitment to occupational safety and health (OSH) by expanding coverage to all employees—including regular staff, project-based teams, and consultants. Upholding the highest safety standards, we continue to foster a strong safety culture across the organization through regular training and proactive programs. All new employees complete the mandatory eighthour DOLE-certified OSH seminar as part of their onboarding, in full compliance with RA 11058 on Occupational Safety and Health Standards.

We also significantly scaled up key OSH initiatives across the San Miguel Group:

• OSH tabletop assessments reached 865 installations in SMC facilities and third-party service providers, marking a 57% increase from 550 in 2023.

• The 2nd SMC Fire Fighting Skills Exhibition was successfully executed with 193 teams participating, up 30% from 149 teams last year, demonstrating our growing focus on emergency preparedness.

• The 3rd SMC Safety Milestone Awards recognized 354 SMC facilities for exemplary safety performance, further motivating compliance and continuous improvement.

• Dedicated employee engagement activities were launched, particularly with the Operations, Maintenance, and Manufacturing (OMM) group and select business units, focusing on expanding fire brigade volunteers and raising road safety awareness. As a result, 61 newly formed fire brigade teams were created, adding 488 newly trained firefighters across the Group.

• We also held the firstever Search for SMC’s Top 10 Outstanding Safety Professionals, honoring individuals who exemplify leadership and excellence in occupational safety and health.

From expanded safety coverage to grassroots fire brigades, San Miguel is building a culture of care, where every employee is equipped, empowered, and protected.

Beyond compliance, our programs extend to promoting general workplace safety, maintaining a drug-free environment, advancing mental health awareness, and preventing communicable diseases. Updated Worker Safety Manuals are maintained in every facility, and our active Safety Councils and Health and Safety Committees continue to provide platforms for employees to raise safety concerns and propose improvements.

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