COLLECTIVE BARGAINING AGREEMENT

This Agreement, made and entered into by and between:

The Corporation, a corporation duly organized under existing laws with office
and plant address at ______________________________ Metro Manila hereinafter
referred to as the COMPANY;
- and THE EMPLOYEES UNION (FFW CHAPTER), a legitimate labor organization
registered and existing under Philippine laws, with office address at the
______________________________ represented herein by its undersigned officers duly
authorized for the purpose, hereinafter referred to as the UNION,
WITNESSETH: That
WHEREAS, pursuant to the Collective Bargaining Agreement entered into in 2005
covering the period 2005-2009 which mandated the negotiation of the provisions of the
Agreement to be enforced for five (5) years.
WHEREAS, the COMPANY and the UNION desire to sign and enter into a Collective
Bargaining Agreement covering five (5) years under mutually acceptable terms and conditions
as a means of further fostering good labor management relations, enforcing discipline, and
maximizing efficiency and honesty in the performance of the employees duties, to insure
optimum productivity, peaceful adjustment and settlement of grievance, disputes and
differences which may arise between the COMPANY and the UNION, to prevent strikes,
slowdowns, lockouts, and other disturbances, interferences with or interruption to,
production, and to promote sound and stable industrial peace and advance the general
welfare, health, safety and the best interest of the employees and the of the COMPANY;
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants, undertaking and stipulations hereinafter set forth, the UNION and the COMPANY
have agreed on the following:
ARTICLE I
RECOGNITION
SECTION 1. Recognition - The COMPANY recognizes the Union as the sole and
exclusive collective bargaining representative of all its regular rank and file employees in the
COMPANY for purposes of collective bargaining with respect to their rates of pay and other
terms and conditions of employment.
SECTION 2. Coverage This Agreement shall apply to and cover all regular rankand-file employees of the COMPANY _________ and in any establishment that may be
organized by the COMPANY in the future with the same nature of business and where the
COMPANY has controlling interest, except those employees explicitly excluded from the
bargaining unit as enumerated in the succeeding section. Consequently, all newly created
regular rank-and-file positions of the COMPANY in the future shall also be covered by this
Agreement.
SECTION 3. Exclusions - The following employment categories are expressly excluded
from the bargaining unit and from the scope of this Agreement: Executives, managers,
supervisors and those employees exercising any of the attributes of a managerial employee;
Finance, HR and IT Department employees, Department secretaries, and personnel assigned
to the Office of the General Manager; probationary, temporary and casual employees,
security guards, and other categories of employees declared by law to be ineligible for union
membership.

SECTION 4. Additional Exclusions

- Employees within the bargaining unit
heretofore defined, who are promoted or transferred to an excluded employment category
as hereinbefore enumerated, shall automatically be considered as resigned and/or
disqualified from membership in the UNION and be automatically removed from the
bargaining unit.
SECTION 5.

Definitions -

a) Managerial employee is one who is vested with powers or prerogatives to lay

down or execute management policies and/or to hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline employees.
b) Supervisory employees are those who, in the interest of the employer, effectively
recommend such managerial actions if the exercise of such authority is not merely routinary
or clerical in nature but with the use of independent judgment.
c) Technical employees shall include all monthly paid personnel occupying the
positions of technicians, preventive maintenance technicians and process technicians.
d) Office employees shall cover all monthly-paid employees exercising general
administrative and clerical functions and utility personnel but excluding Department
secretaries and those with the HR, Finance and IT Department, and the Office of the General
Manager.
e) A probationary employee is one hired for a trial or probationary period not to
exceed six (6) months to fill or occupy eventually a regular position in the COMPANY
organization. The probationary period shall be reckoned from the first day of employment as
a casual or temporary employee
f) A casual employee is one hired for a definite, fixed or determinable period of time
strictly to perform work on a specific project not directly connected with the regular
operations or business of the COMPANY.
g) A temporary employee is one hired for occasional or seasonal work, or as a
temporary replacement for regular employee on leave.
h) A regular employee is one who is extended regular appointment or who after having
satisfactorily completed the probationary period and full requirements for regular
employment is retained by the COMPANY.
SECTION 6.
Non-representation of Excluded Employees - It
understood that the UNION shall not represent, bargain for, or speak in
employee or group of employees in the excluded employment categories in
off, discharge, transfer, disciplinary action, grievance and terms and
employment.

is agreed and
behalf of any
respect to lay
conditions of

ARTICLE II
UNION SECURITY
SECTION 1. Maintenance of Membership - All employees who are within the
bargaining unit as herein defined and are members of the UNION upon the signing of this
Agreement shall remain members of the UNION in good standing for the duration of this
Agreement as a condition precedent to continued employment with the COMPANY.
It is understood that employees within the bargaining unit who are not members of
the UNION as of the date of the signing of this Agreement shall be free to join or not to join
the UNION without pressure or compulsion from the COMPANY or the UNION.
Employees who may hereafter be accorded regular status and fall within the scope of
the bargaining unit herein defined, shall automatically become members of the UNION, and

shall maintain his membership in good standing during the term of this Agreement, as a
condition of their continued employment with the COMPANY.
SECTION 2. Dismissals - Any such employee, mentioned under the last paragraph of
Section (1) hereof, who refuses to join the UNION after attaining regular status and/or any
UNION member who fails to maintain his membership in the UNION for any of the following
grounds:
(a) commission of a crime against the Federation, UNION officers and members;
(b) non-payment of right amount of UNION dues and other special assessments to the
UNION;
c) voluntary resignation from the UNION during the effectivity of
except as allowed by law; and

the Agreement

d) violation of the UNIONs Constitution and By-Laws

shall, upon written notice by the UNION of such refusal to join or to maintain membership in
the UNION and upon written recommendation to the COMPANY by the UNION, be dismissed
from employment by the COMPANY provided, however, that the UNION shall hold the
COMPANY free and blameless from any and all liabilities that may arise should the dismissed
employee question, in any manner, his dismissal.
SECTION 3. Discharge of Critical Employees - The COMPANY may ask the UNION
a reasonable period of time from the date of recommendation by the UNION within which the
employee shall be terminated from employment, if such employee is performing a function
that is critical to the business of the COMPANY, unless replacement therefor may be or is
actually obtained by the COMPANY.
SECTION 4. Action on Demand for Dismissal - Where the COMPANY asks for a longer
period within which to dismiss the employee concerned in view of the critical nature of his
functions, final action on the recommendation on the termination by the COMPANY shall be
taken only after a suitable replacement has been obtained within a reasonable period of
time pursuant to Section 3.
SECTION 5. Type of Dismissal - Dismissal and/or termination of employment of an
employee under Sections 2 and 3 of this Article shall be treated and considered as dismissal
for a just cause.
SECTION 6. In case of retrenchment or reduction of personnel due to installation of
labor saving device, the same shall be applied equitably to all affected personnel using the
guidelines set by law and their implementing rules. In case of a tie, all things being equal,
Elected UNION Officers, shall be given preference.
ARTICLE III
CHECK-OFF
SECTION 1. Written Authorization - The COMPANY agrees to check-off or deduct
once a month from the wages/salaries of members of the UNION, earned in the second period
of each calendar month, UNION dues in such definite amounts as provided for in the UNIONs
Constitution and By-laws or general membership resolution and to remit 50% of such
deductions for UNION dues to the Federation of Free Workers and the other 50% to the local
chapter (_________EU - FFW); provided, however, that the UNION members submit individual
written requests and authorizations thereof.
The COMPANY also agrees to check-off or
deduct from the wages/salaries of members of the UNION special union assessments such as
bereavement contributions and fines; provided, however, that the Board resolution thereof,
approved by the general membership, duly certified by the Secretary and President of the
UNION, together with the Special check-off authorization of individual UNION members
relative to such assessments, is submitted to and received by the COMPANY not less than ten
(10) days prior to the date during which assessment or deduction is requested to be made.

In addition, the COMPANY agrees to check-off for the UNION from the wages/salaries of the
UNION members contributions/collections for the employees Cooperative, provided,
however, that the UNION submits to the COMPANY at least ten (10) days prior to the
deductions or check-off, individual written authorization thereof from the UNION members.
The COMPANY and the UNION shall formulate a control mechanism regarding such
contributions/collections for the Cooperative to avoid any undue financial burden to the
employees.
SECTION 2. Agency Fee - All rank-and-file employees covered by the bargaining
unit but who are not members of the UNION shall be collected an amount equivalent to the
union dues representing agency fee to be deducted from their monthly salary.
SECTION 3. Duration of Written Authorization
- The check-off request and
authorization for monthly UNION dues shall remain in effect during the term of this
Agreement. The special check-off request and authorization for special UNION assessment
and the Cooperative shall be good only for the specified UNION assessment or deduction.
SECTION 4. Transmittal of Check-Off Amounts - The COMPANY agrees to remit to
the Treasurer of the UNION by check, the amount deducted in accordance with the check-off
authorization within five (5) working days after such check-off or deduction is made. The
Treasurer of the UNION and/or the duly authorized UNION representative shall acknowledge
and issue the corresponding UNION official receipt therefor and, thereafter, the COMPANY
shall no longer be responsible for such amount(s).
SECTION 5. Assumption of Liability
The UNION, its officers, and members
hereby agree to indemnify, answer for, and hold the COMPANY free and blameless from, any
and all claims which may be brought or instituted against the COMPANY by an employee for
amount deducted from his salaries or wages as herein provided.
SECTION 6.
Priority of Certain Obligations or Indebtedness - Notwithstanding
the provisions of this Article, the COMPANY shall have the right to give priority to the
deductions from the wages or salaries of the members of the UNION all obligations,
indebtedness and deductions required to be made by law, such as SSS, PhilHealth, and Pagibig Fund contributions, withholding tax deductions and the like. After which deductions for
the UNION and the Cooperative shall be effected.
SECTION 7. Employee Records - The COMPANY agrees to furnish the UNION a copy
of each regular employment extended to a rank-and-file employee who is a qualified member
of the bargaining unit. The COMPANY furthermore agrees to accommodate such requests of
the UNION for specific information or data regarding any of its members which are available
from their personnel files provided they are directly related to claims and grievance of the
employee concerned.
ARTICLE IV
MANAGEMENT PREROGATIVES
SECTION 1. The UNION hereby recognizes the COMPANYs rights to the exclusive
control of management over all functions and facilities and to the direction of the entire
working force. The COMPANY shall be the sole judge of the competence of an employee in
the performance of his assigned work. The exclusive rights and prerogatives of the COMPANY
shall include, but shall not be limited, to the right to schedule the hours of work, shifts and
work schedules, reporting days, and quota; to plan schedule, direct, curtail, increase or
control operations and schedules of periods during which the COMPANY will be shut down; to
introduce and install new or improved systems, procedures, methods of facilities; to
designate the work and the employee to perform it; to select and hire employees to train
other employees and improve their ability; to make and enforce rules and regulations
governing conduct and maintenance of order, safety and effective operations within the
COMPANY; to promote, demote, dismiss, discharge, lay-off, discipline, suspend and transfer
employees from one job to another, to institute a job classification and/or merit rating
system to create new or additional classifications or to eliminate classification of jobs and

employees and, in general, to exercise the inherent customary prerogatives and functions of
management subject to the provisions of the law and of this Agreement.
ARTICLE V
EMPLOYMENT STATUS
SECTION 1. Employment Priority
In filling up vacant or newly created
positions, preferences shall be given to employees who, in the judgment of the COMPANY,
possess the necessary qualifications for the position. The COMPANY shall first determine who
would be best suited or qualified for the position through the use of the established criteria
of ability, efficiency, qualifications and experience in handling the job. When, in the
judgment of the COMPANY, all such factors or criteria are equal, seniority shall be the
deciding factor.
SECTION 2. The hiring of relatives shall be governed by the following:
a) relationship (by blood or affinity) between and among employees will not be
allowed within the same section/work area of Production Department, nor within the same
department or support group;
b) under no circumstances will superior-subordinate relation between relatives of any
degree be allowed. Also, relatives by blood or affinity of whatever degree shall not occupy
counterchecking positions.
SECTION 3. In case a regular employee dies or retires and the COMPANY decides to
fill-up the position vacated as a consequence of his death or retirement, any member of his
immediate family who is qualified for the position shall have priority in the hiring of his
replacement.
For the purpose of this provision, immediate family shall mean the legitimate
father, mother, brother or sister of an unmarried employee, or the legitimate spouse, son or
daughter of a married employee.
SECTION 4. Seniority Seniority is determined on the basis of the employees length
of continuous service with the COMPANY, counted from the first day of his employment,
provided that the seniority of those temporarily laid off in 1985 shall be considered as not
having been interrupted by that lay off.
SECTION 5. Promotion The trial period for an employee who is promoted to a
higher-rated position shall be at least three (3) months. During the trial period, the
employee shall receive the same pay as he was receiving immediately prior to his promotion
plus a position premium to be determined by the COMPANY. An employee who fails to
satisfactorily pass the trial period for promotion shall be reverted to his former position.
An employee who passes the trial period and is thus promoted shall be granted a
promotional increase as follows:
For daily-paid employees

- 10% increase on the basic daily wage.

For monthly-paid employees -

10% increase on the basic monthly salary.

SECTION 6. Reduction of Personnel - The COMPANY shall use its best effort to
avoid a reduction or lay off of personnel by adopting alternative measures allowed by law
and feasible under the circumstances. In case termination or lay off cannot be avoided
because of retrenchment to prevent losses, redundancy, installation of labor-saving devices
and other similar or analogous causes, the selection of employees to be terminated or laidoff shall be done initially on a voluntary basis, after which any need for further reduction
shall be accomplished based on the following criteria applied on a per-department or persection basis:

a.

Ability, efficiency, and qualifications including experience in performing the work

available;

b.

Conduct and behavior of the employee as shown by his employment record; and

c.

All things being equal, the Last-In, First-Out Rule shall be applied.

In any event, any employee who is terminated for authorized causes mentioned above
shall be granted separation pay consistent with law or the rate under the Companys
retirement plan, whichever is higher
SECTION 7. Transfer of Personnel - Except for reasons of operational requirements
or business exigencies, the COMPANY shall not transfer any UNION officer or shop steward if
his transfer will adversely affect the grievance machinery or the effective performance of
their functions as UNION officers.
SECTION 8. Change in Status, and or Ownership - The COMPANY agrees that should
there be a change in status and/or ownership by the latter, by way of sale, merger,
consolidation, receivership, spin-off, attachment, administration, or other forms of transfer,
the COMPANY shall exert best effort to have the new administration respect the existing
Collective Bargaining Agreement between the COMPANY and the UNION.
ARTICLE VI
GOVERNMENT POLICIES
SECTION 1. Through the LMC, the parties, in recognition of individual and team
productivity potentials of its entire employees, participate in decision-making processes that
affect the general welfare of the employees to enhance the quality of life and COMPANY
productivity. Therefore the parties agree to develop, promote and implement workable:
a) Labor Management Cooperation programs for the benefit of the employees and
the Company
b) Family Planning in accordance with law
c) Health, Safety and other Government Policies The COMPANY and the UNION
agree to support existing government policies on health and safety standards and
related government programs including workers education, job enrichment,
reduction of monotony of work, sports and recreational activities with the end in
view of enhancing productivity, efficiency and morale as well as the physical health
and well-being of employees.
It is hereby agreed that an employees committee shall be created which shall be in
charge of proposing sports and recreational programs and a budget therefore subject to the
approval of the General Manager.
d) Employee Committee the COMPANY shall maintain as long as deemed necessary
such labor-management committees as are presently existing, i.e., Canteen
Committee, Recreation Committee and Health and Safety Committee, and shall
form such other Committees as may be required by law or as may be agreed upon
by the parties.
ARTICLE VII
RESPONSIBILITIES OF THE PARTIES AND INDUSTRIAL PEACE
SECTION 1. Maintenance of Industrial Peace and Harmony Each of the parties
hereto acknowledge the rights and responsibilities of the other party and agrees to discharge
its responsibilities under this Agreement. Except in cases allowed by law, the UNION, its
officers, agents and members warrant that for the duration of this Agreement they shall not
initiate, engage or tolerate the commission of strikes or any form of work stoppages or

concerted activity disruptive of the smooth and efficient operations of the COMPANY. In turn,
the COMPANY undertakes that there shall be no lockouts so long as this Agreement is in
effect. The parties further reiterate their commitment to preserve and maintain industrial
peace and harmony in the COMPANY for the duration of this Agreement, and shall at all times
discuss and resolve labor-management problems or disputes amicably, in accordance with the
terms of this Agreement and the law.
SECTION 2. Warranties - The parties acknowledge that during the negotiation
which resulted in the execution of this Agreement, each of them has had the right and
unlimited opportunity to make demands and proposals with respect to any and all subjects
and matter proper for collective bargaining and not prohibited by law; and the parties
further acknowledge that the understanding and agreement arrived at by them after the
exercise of that right and unlimited opportunity are fully set forth in this Agreement.
The COMPANY and the UNION, during the life of this Agreement, each voluntarily and
unqualifiedly waives the right, and each agrees that the other shall not be obligated to
bargain collectively with respect to any bargaining matter and/or matter referred to or
covered by this Agreement.
ARTICLE VIII
GRIEVANCE MACHINERY
SECTION 1. Purpose - The intention and purpose of the parties is to establish a
means for the prompt disposition and amicable settlement of all grievances.
SECTION 2.
Definition
A grievance is any difference of opinion or
misunderstanding between the COMPANY and member of the UNION with respect to the
meaning, interpretation, application of, or compliance with, any of the provisions and terms
of this Agreement, or with respect to terms and conditions of employment.
SECTION 3. Procedure - Should a grievance arise, an earnest effort shall be made
to settle the same in accordance with the following procedure:
STEP 1. (a) Within 3 days from the time the event considered as a grievance arose,
the employee, either in person or through the Shop Steward shall submit his grievance in
writing to his Supervisor, who, together with the Shop Steward, shall endeavor to resolve the
grievance within 3 days from the time the grievance was submitted.
(b) If the grievance is not resolved by the Supervisor and the Shop Steward,
the grievance must be referred to the Chief Shop Steward and the Section Head or
Department Head within 3 days. The Section Head (or Department Head) and the Chief Shop
Steward also have a period of 3 days within which to resolve the grievance. If no satisfactory
decision is reached at this stage, the grievance shall be referred to the next level.
STEP 2.
The HR Manager shall endeavor to resolve the grievance within five (5)
days from the date the grievance was referred to him and/or discuss the grievance with the
end in view of settling the same with the employee concerned and/or the Chairman of the
UNION Grievance Committee. If the grievance is not resolved within the said period or the
same is decided not to the satisfaction of the employee or the UNION, the grievance may be
referred to the General Manager within five (5) days from the lapse of the 5-day period for
the HR Manager to resolve the same, or from the date the employee or the UNION received
notice of the HR Managers decision.
STEP 3.
The General Manager shall endeavor to resolve the grievance within
seven (7) days from referral to him, and may call upon the President of the UNION for the
purpose. Should he fail to resolve the grievance within the period, or should the employee
be not satisfied with his decision, the grievance may be referred to arbitration in accordance
with Section 4 hereof.
SECTION 4. Arbitration -

a) The arbitration of unsettled grievances shall be made by an Arbitrator who shall

be chosen as follows:
The COMPANY and the UNION shall each submit five (5) names of qualified/competent
arbitrators. A representative each of the UNION and the COMPANY shall then proceed to
strike out a name alternately from the list of ten (10) names until two (2) names remain.
From these two names shall be chosen by lot the Arbitrator. The decision of the Arbitrator on
a grievance presented before him in accordance with the provisions of this Agreement shall
be final and binding upon the COMPANY, the UNION and the employee or employees
concerned, except in those cases where appeals of an Arbitrators award is permitted by law.
SECTION 5. Arbitrators Decision
- It shall be the Arbitrators obligation to the
COMPANY and the UNION to make the best effort to rule on cases within thirty (30) days after
the hearing.
SECTION 6. Appeal Except as may otherwise be provided by law, there shall
be no appeal from an Arbitrators decision on a grievance presented before him in accordance
with the provisions of this Agreement and the decision shall be final and binding on the
UNION, on all bargaining unit employees and on the COMPANY.
SECTION 7. Company Grievances
- Any grievance of the COMPANY against the
UNION or its members, shall be brought directly by the COMPANY to the UNION President,
and/or Grievance Committee and then to arbitration, if need be, as provided above.
SECTION 8. Time-Off The Company shall allow the UNION representatives such
time-off with full pay as may be necessary for the handling of grievances, arbitration and
conciliation proceedings.
SECTION 9. Access to Company Premises - The COMPANY agrees that all UNION
officers and Shop Stewards, and a reasonable number of UNION members acting within their
specific area of assignment; and responsibilities shall have access to the COMPANY premises
for any of the following purposes:
(a)

To investigate any grievance that has arisen;

(b)

To ascertain whether or not this Agreement is being observed:

(c)

To interview for a reasonable time stewards of the UNION;

(d)

To post official UNION notices on the bulletin board designated by the

COMPANY for such purpose;

(e)

To attend officially convened UNION meetings being held within COMPANY

premises; and

(f)

Such other purposes as may be consonant with the promotion of good relations
between the COMPANY and the UNION;

provided, however, that such right of access shall be exercised judiciously and does not
interfere with the conduct of the COMPANYs operations; and provided, further, that such
UNION representatives desiring access to COMPANY premises shall, at all times, secure the
prior permission of the COMPANY.
SECTION 10. Plant Shutdown The normal yearly shutdown in December of every
year shall be scheduled anytime between December 16 and January 2 of the next year;
provided, however, that in the event business exigencies require the shortening or extension
of the shutdown, such shortening or extension shall be conveyed to and discussed with the
UNION. The COMPANY shall give the UNION advance notice of at least one (1) month before
the scheduled plant shutdown; provided that the COMPANY shall draw up a list of sections or
departments that will go on leave for the duration of the shutdown; provided further that
should the COMPANY recall any of these employees to work during the shutdown, the days
worked by such recalled employees shall be considered as overtime work.

Work performed within the regular work hours by employees usually needed during
the shutdown as determined by the COMPANY (i.e., line technicians, general maintenance
staff, Finance, Planning, Logistics and Production employees doing inventory-taking) shall not
be considered as overtime; provided, however, that they shall be given a meal ticket worth
P30.00 for everyday that they work, and that their vacation leave shall be rescheduled or
converted into cash upon their own choice.
ARTICLE IX
HOURS OF WORK
SECTION 1. Work day
The present work week, hours of work or work
schedules in the COMPANY shall be maintained. The UNION reiterates its full recognition of
and its agreement to the COMPANYs sole and absolute right to schedule or re-schedule work
hours, shifts and/or work schedules. The UNION further agrees that any work schedules or
work hours that the COMPANY has established or may establish from time to time does not
constitute a guarantee of hours of work or of pay per day or per week.
SECTION 2. Deviation in Work Schedules
The parties recognize and
understand that deviation from, or changes of the existing work schedules or work hours will
be necessary and will unavoidably result from several causes, such as, but not limited to,
leaves of absence, absenteeism, employee requests, business requirements and emergencies.
The present work shift schedule for production employees are as follows:
First shift
Second shift
Third shift

6:00 a.m. to 2:00 p.m.

2:00 p.m. to 10:00 p.m.
10:00 p.m. to 6:00 a.m.

In each shift there shall be a forty-five (45) minute continuous break to be considered
as time worked so that each employee shall be credited eight (8) hours of work per shift.
The COMPANY, however, reserves the right to change the schedule upon proper notification to
and discussion with the UNION and the employees whenever the exigencies of the service so
demands.
The present work schedule of office and technical employees not assigned to any shift
shall be as follows:
Monday to Friday
Saturday

8:00 a.m. to 12:00 noon

1:00 p.m. to 5:00 p.m.
8:00 a.m. to 12:00 noon

A fifteen (15) minute snack-break in the morning and in the afternoon from Monday to
Friday shall be considered as time worked within the regular hours of work. Any deviation in
this work schedule shall be conveyed to and discussed with the UNION.
ARTICLE X
SALARIES AND WAGES
SECTION 1. Salary/Wage Increases - Employees covered by this Agreement shall be
granted salary/wage increases as follows :
a. Effective January 1, 2007, all employees on regular status within the
bargaining unit on or before said date, shall be granted a salary increase of
P400 on their basic monthly salary as of December 31, 2006.
b. Effective January 1, 2008, all employees on regular status within the
bargaining unit on or before said date, shall be granted a salary increase of
P400 on their basic monthly salary as of December 31, 2007.

c. Effective January 1, 2009, all employees on regular status within the

bargaining unit on or before said date, shall be granted a salary increase of
P400 on their basic monthly salary as of December 31, 2008.
The wage/salary increases granted under this CBA shall be deemed inclusive of the
mandated minimum wage increases under present and future laws or Wage Orders, and shall
be considered as correction of the wage distortions that may have been brought about by the
same. This provision has been upheld by the Secretary of Labor in her decision dated 15
October 2003, citing the case of APEX Mining vs. NLRC (G.R. 862200, 25 Feb. 1992, 206 SCRA
497,501) and NFL vs. NLRC (G.R. 103586, 21 July 1994, 234 SCRA311-324).
SECTION 2. Regularization Increase
- A covered daily paid employee who
acquires regular status within the year subsequent to the effectivity of a particular
salary/wage increase mentioned in Section 1 above, shall be granted a salary/wage increase
on a proportionate basis as follows:
Regularization Period

Equivalent Increase

1st quarter
2nd quarter
3rd quarter
4th quarter

100%
75%
50%
25%

On the other hand, any monthly-paid employee who acquires regular status within
the term of the Agreement shall be granted regularization increase equivalent to 10% of his
regular basic salary.
Section 3. Productivity Based Allowance For the period of this CBA covered
employees may be entitled to productivity based allowance using as basis the Associates
Performance Measurement Program Policy of the company
Ranking

Rating

A
B
C
D
E

95 100
90 - 94.99
80 - 89.99
70 - 79.99
Below 70

Amount of Performance
Allowance
P480.00
360.00
240.00
120.00
0

Section 4. INDUSTRIAL PEACE INCENTIVE In order to give premium to the

conclusion of this Collective Bargaining Agreement, without any work stoppage, nor any form
of industrial disruption or sabotage, and considering that this agreement arose from the free
and voluntary agreement of the parties, without resorting to arbitration nor jurisdictional
assumption of the Secretary of Labor and employment, an Industrial Peace Incentive
amounting to a one time grant of THREE THOUSAND PESOS (P3,000.00) is hereby granted to
each covered employee, effective upon the formal ratification of this CBA.
ARTICLE XI
OVERTIME/PREMIUM PAY AND NIGHT DIFFERENTIAL PAY
SECTION 1. Overtime Pay - Any employee who is permitted or required to render
overtime work during regular/ordinary working days shall be paid, for each hour of such
overtime work, his equivalent regular basic hourly rate plus thirty percent (30%) thereof.
SECTION 2. Premium Pay - Any employee who is permitted or required to work on
special holidays or on his designated rest day shall be paid, for the first eight (8) hours of
work, his regular basic daily or hourly rate plus Forty Percent (40%) thereof. Work in excess
of eight (8) hours on special holidays and rest days shall be paid for each hour of such work,
based on the employees regular basic hourly rate plus Eighty Percent (80%) thereof.

SECTION 3. Holiday Pay - Any employee who is permitted or required to work on

a regular holiday shall be paid, for the first eight (8) hours of such holiday work, his regular
basic daily or hourly rate plus one hundred fifty percent (150%) thereof. Should the regular
holiday also be the employees scheduled rest day, he shall be paid, for the first eight (8)
hours of such holiday-rest day work, his regular basic daily or hourly rate plus One Hundred
Eighty Percent (180%) thereof. Work in excess of eight (8) hours on a regular holiday falling
on the employees scheduled rest day, shall be compensated based on the employees regular
basic hourly rate plus Two Hundred Fifty Percent (250%) thereof. Subject to the provisions of
existing law, any overtime work on a regular holiday, shall require the consent of the
employees required to perform overtime work.
SECTION 4. Saturday Afternoon Premium Pay - Any work rendered on Saturday
by non-shift office and technical employees within the bargaining unit after 12:00 noon,
excluding the usual meal break, shall be considered as overtime work, and shall be paid
premium pay of Fifty Percent (50%) of the employees equivalent regular basic daily or hourly
rate as the case may be.
SECTION 5. Formula to Determine Hourly Rate - The formula to be used in
determining the hourly rate of salaried employees for the purpose solely of computing their
overtime and premium pay shall be as follows:
Hourly Rate

Monthly Salary x 12
287 days x 8

SECTION 6. Meal Allowance

- All covered employees shall be granted a regular
meal allowance in the form of meal tickets as follows:
a. Effective January 1, 2007 P22.00
b. Effective January 1, 2008 P22.00
c. Effective January 1, 2009 P22.00
Employees who perform overtime work of at least four (4) hours a day shall be
granted meal allowances in the form of meal tickets in the following amounts:
a. P24.00 for overtime work performed on regular working days.
b. P22.00 for overtime work performed on rest days and holidays.
The COMPANY furthermore commits to stabilize the prices of rice, vegetable and other
viands in the COMPANY canteen.
SECTION 7. Night Shift Differential Pay - Work between 6:00 p.m. and 6:00 a.m.
shall be paid night shift differential pay at Twenty-Five Percent (25%) of the employees
regular basic wage.
ARTICLE XII
LEAVES OF ABSENCE
SECTION 1.

Vacation Leave -

(a) Any employee within the bargaining unit shall be granted vacation leave with pay
every calendar year in accordance with the following schedule:
Length of Service
At least 6 months to less
than 3 years
3 years to less than 4 years
4 years to less than 5 years
5 years to less than 6 years
6 years and above

No. of Days

18
20
22

15

24

(b) All unused vacation leave credits shall be converted into its cash equivalent (i.e.
based on the employees basic daily rate) payable to the employee on the first day of
December of each year.
Resigned employees shall receive the cash equivalent of their unused vacation leave
upon clearance, provided that they have given notice of their resignation thirty (30) days
prior to the effectivity of their resignation.
Resigning employees who fail to give the required notice as above mentioned and
those whose services are terminated for just causes as enumerated in the Labor Code and in
the _________ Employee Handbook shall be deemed to have forfeited their vacation leave
credits and its cash convertibility.
Employees whose services are terminated for just causes as mentioned above, but
who, for humanitarian consideration, are permitted to resign instead of being dismissed, shall
also be considered to have forfeited the benefits of this provision.
(c) The COMPANY reserves the right to schedule and/or reschedule vacation leaves of
employees during such period or periods of time to be determined solely by the COMPANY.
The COMPANY agrees to give consideration to the employees preference for the days of their
scheduled leave, subject to the exigencies of the service of the COMPANY.
SECTION 2.

Sick Leave -

(a) Any employee within the bargaining unit shall be granted sick leave with pay every
calendar year in accordance with the following schedule:
Length of Service
8 years of service or less
more than 8 up to 12
years of service
more than 12 up to 16
years of service
more than 16 up to 18
years of service
more than 18 years of service

No. of Days
15 days
16 days
17 days
18 days
20 days

(b) Sick leave will only be granted to those employees who are actually sick and only
upon recommendation and proper certification by the COMPANY physician.
(c) Unused sick leaves shall be treated similarly as unused vacation leaves in
accordance with Section 1 (b) of this Article.
SECTION 3. Emergency Leave - The COMPANY agrees to grant emergency leave
with full pay not exceeding eight (8) days a year to regular employees covered by this
Agreement on any of the following cases:
(a)

in case of serious illness of legitimate spouse, child, father, mother, brother or

sister.

(b)

in case of death of legitimate spouse, child, father, mother, brother, sister, or

in-laws.

(c)

in cases of earthquake (intensity 4 or more in the Richter (Scale) causing

damage to property or injury to the person of the employee or in cases of fire,
typhoon (signal no. 2) or flood posing an immediate danger to the property or
family of the employee, provided, however, that in the wake of such calamities
when the property of the COMPANY shall also have been damaged, then the
rights provided herein shall not apply.

In no case shall an employee avail himself of more than eight (8) days total emergency
leave with pay during a year.
The above cases or conditions warranting the grant of emergency leaves are subject
to verification and final approval by the COMPANY. It is understood that all unused
emergency leaves shall not be convertible into cash.
SECTION 4. Union Leave
- The COMPANY agrees to grant to employees who are
UNION officers or members a combined total of Fifty (50) days UNION leave with pay and
another Thirty-seven (37) days UNION leave without pay for the purpose of attending labor
seminars and conferences, upon recommendation by a sponsoring federation, organization, or
educational institution and prior approval by the COMPANY. It is expressly agreed, however,
that in no case shall any one UNION officer or member be on UNION leave exceeding fifteen
(15) working days a year, unless for very special reasons, an extension is necessary, in which
event prior consent by the COMPANY is required. No more than two (2) UNION officers or
members shall at the same time, be on UNION leave. Unused UNION leave shall not be
cumulative or convertible to cash.
SECTION 5. Presidents Privilege
- To enable the UNION President to attend
diligently to UNION matters and further strengthen labor-management relationship, he/she
shall enjoy flexible and liberalized work schedule which will require him/her to report for
work for 48 hours a week.
SECTION 6. Maternity Leave - Maternity leave shall be granted in accordance with
law and a financial assistance of P3,000.00 for normal delivery shall be granted. However, an
employee who undergoes caesarean section shall have the option of either availing herself of
additional thirty (30) days maternity leave with pay or the hospitalization benefit provided
for covered employees in the subsequent paragraph.
The COMPANY shall grant a hospitalization assistance of P10,000.00 a year for covered
pregnant employees delivering by caesarean section. Availment of this benefit by an
employee who undergoes caesarean section shall bar her application for and enjoyment of
the additional thirty (30) days maternity leave mentioned above.
SECTION 7. Paternity Leave
to qualified employees.

Paternity leave of seven (7) days shall be granted

ARTICLE XIII
MEDICAL, DENTAL AND HOSPITALIZATION BENEFITS
SECTION 1. Hospitalization Benefits The
COMPANY
shall
provide
employees within the bargaining unit with hospitalization and medical benefits as agreed by
the parties; provided that the maximum amount insofar as dreaded disease is Fifty-five
Thousand Pesos (P55,000.00) and normal disease should be included up to Twenty five
Thousand Pesos (P25,000.00) It is understood, however, that the annual medical check-up
included in the aforesaid program shall be conducted for those who shall become permanent
after the signing of this Agreement only after twelve (12) months from date of permanency.
The COMPANY will enroll qualified employees to a Health Maintenance Organization
(HMO) Program up to the covered amount as mentioned above with the effectivity of
coverage thereof to the said HMO Program after the signing of this Agreement. Employees
qualified dependents, up to a maximum of three dependents per qualified employee, will be
covered under the HMO Program starting January 1, 2005.
SECTION 2. The COMPANY shall, on appointment basis, open its medical clinic on
Saturdays to employees dependents for minor treatment and consultation. In addition,
emergency cases will be accommodated.
SECTION 3. Dental Benefits The COMPANY shall continue to maintain a dental
clinic to provide dental services to each employee. The clinic shall also maintain stock and

emergency medicines for the benefit of the employees. Dental services free of charge shall
be granted to the employees consisting of prophylaxis, extraction and all kinds of routinary
treatment of dental cavities and ordinary filling.
SECTION 4. Optical Benefits - The COMPANY agrees to shoulder the full cost of
eyeglasses (up to the maximum amount of P600.00) prescribed by and purchased from the
COMPANY Ophthalmologist once during the effectivity of this Agreement and only for regular
employees who have rendered at least twelve (12) continuous months of service to the
COMPANY. For any employee whose eye refraction has changed drastically during the term of
this Agreement as certified to by the COMPANY Ophthalmologist, the COMPANY agrees to pay
for the new lens that may be prescribed by said Ophthalmologist.
ARTICLE XIV
OTHER BENEFITS
SECTION 1.
Company Uniforms uniforms a year as follows:

jobs.

The COMPANY agrees to provide free

(a)

To all employees - 2 smocks with head caps each and, if necessary, face masks
to production employees

(b)

Slippers

Additional smocks may be granted to employees as demanded by the nature of their

SECTION 2. Group Life and Accident Insurance - The COMPANY agrees to extend
all covered employees a Group Life Insurance Plan, (with
accidental death and
dismemberment coverage) at a face value of One Hundred Forty Thousand Pesos
(P140,000.00).
SECTION 3. Christmas Bonus - The COMPANY shall grant a Christmas bonus yearly
to all employees as follows: for daily-paid employees, the sum equivalent to their basic daily
rate times 26 days, and for monthly-paid employees, the sum equivalent to their one month
pay, which is also in compliance with P.D. 851.
SECTION 4. Gift Certificates
In celebration of the Christmas season, the
COMPANY shall grant to each employee within the bargaining unit a gift certificate worth One
Thousand Three Hundred Pesos (P1,300.00) which shall be given at least a week before
December 25.
SECTION 5. 14th Month Pay - All employees covered by this Agreement shall
receive every year a bonus, equivalent to their basic daily rate multiplied by thirteen (13)
days for daily-paid employees, and one-half (1/2) of their basic monthly salary for monthlypaid employees. Those who will resign without completing the calendar year shall be
entitled to a proportionate amount of the benefit.
SECTION 6. Bereavement Benefit In the event an employee dies, the
COMPANY shall grant his legitimate dependents, upon showing adequate proof of kinship, a
bereavement benefit of Forty Thousand Pesos (P40,000.00). The sum of Fourteen Thousand
Pesos (P14,000.00) shall be given to the employee, if married, upon the death of his/her
legitimate spouse or children. If the employee is unmarried, the sum of Fourteen Thousand
Pesos (P14,000.00) shall be given to him/her for the death of his parents. It is understood
that only one payment shall be claimed and made for each case of death.
SECTION 7.
Retirement Benefits Retirement benefits shall be granted to
all covered employees in accordance with the provisions of the Retirement Plan, subject to
the qualification that effective January 1, 1994, the base rate for computing the benefits
shall be increased from seventy-five percent (75%) to one hundred percent (100%) of the final

monthly salary. The rate of retirement benefits per year of service effective 1 January 2000
shall be as follows:
10
11
12
13
14
15
16
17
18
19
20

years
years
years
years
years
years
years
years
years
years
years & above

65%
70%
75%
80%
85%
90%
95%
100%
105%
110%
115%

SECTION 8. Attendance Bonus Employees covered by this Agreement shall

henceforth be entitled to an attendance bonus equivalent to one days pay for every six (6)
months of perfect attendance, payable in accordance with the following schedule:
-

First week of July payroll (for the period from January to June)

First week of January payroll of the following year (from June to December)

SECTION 9. Reporting Benefits - The COMPANY may, in case of emergency resulting

from power failure, fire or other calamities that may affect the operation of the COMPANY,
declare that a shift or fraction of any shift be cancelled, in which event, the COMPANY shall
pay the employees as follows:
(a)

Actual work or COMPANY-demanded waiting time of less than four (4) hours 50% of basic daily wage

(b)

Actual work or COMPANYdemanded waiting time of more than four (4) hours 100% of basic daily wage

SECTION 10. Loyalty Award

regular employee as follows:

The COMPANY shall grant a loyalty award to every

For employees who have completed fifteen (15) years of service - silver _________
pin;
For employees who have completed twenty (20) years of service - golden _________
pin plus one (1) month salary; and
For employees who have completed twenty-five (25) years of service - golden
_________ pin plus two (2) months salary.
SECTION 11. Educational Subsidy - The COMPANY shall grant a yearly educational
subsidy of One Thousand Two Hundred Pesos (P1,200.00) to every employee covered by this
Agreement who either is himself officially enrolled and pursuing a course in a school
recognized by the Department of Education and Sports, or has a legitimate child who is so
enrolled. To be entitled to this benefit, which is payable at least a week before the school
opening, the employee must submit to the COMPANY satisfactory proofs of his or his childs
enrollment within a reasonable period prior to claiming the benefit.
SECTION 12. Rice Subsidy - All covered employees shall be granted rice subsidy
equivalent to One Thousand Fifty (P1,050.00) per semester.
SECTION 13. Service Bus - The COMPANY shall provide sufficient number of service
bus which shall be made available to shifting employees.
SECTION 14. Salary Loan - The COMPANY shall extend a salary loan equivalent to Five
Thousand Pesos (P5,000) per year to qualified regular employees at zero percent interest

payable within the fiscal year on any of the following contingencies affecting the employee
and his immediate family, including his parents
a)
b)
c)

Educational related emergencies

Maternity and Paternity emergency requirements;
House repairs
ARTICLE XV
SEPARABILITY CLAUSE

The provisions of this Agreement are separate and independent from each other and
are not to be construed or interpreted as having restrictive or expansive effect upon the
meaning, interpretation or execution of any other provision of this Agreement, either
implicitly or explicitly, unless it is so specifically provided.
Should any part of this Agreement be declared invalid because of conflict between its
provisions and any provision of any present or future law, statute, government decree, rule or
order, such invalidity shall not affect the remaining valid portions of this Agreement.
ARTICLE XVI
EFFECTIVITY AND DURATION
SECTION 1. Period
- This re-negotiated Agreement
January 1, 2007 to December 31, 2009..

shall take effect

from

SECTION 2. Binding Effect The terms of this Agreement shall remain in force
during the negotiations for a new agreement and until such new agreement is finally reached
and entered into. During its effectivity, this Agreement shall be binding upon all employees
of the COMPANY within the bargaining unit and shall not be modified by court action or by
concerted activity of the UNION, its members and said employees.
ARTICLE XVII
RATIFICATION
SECTION 1. Ratification The UNION assures the COMPANY that this Agreement has
been duly ratified and approved by the membership of the UNION.
IN WITNESS WHEREOF, the parties hereto by their respective representatives affix
their signatures on this 13th day of June, 2007 at Taguig City, Metro Manila, Philippines.

_____________________________
Corporation

_____________________________
EU FFW

By:

By:

_____________________________
General Manager

_____________________________
President

_____________________________
Human Resources Manager

_____________________________
Vice-President

_____________________________
Manufacturing Manager

_____________________________
Secretary

_____________________________
Finance Manager

_____________________________
Treasurer

Assisted by:

Assisted by:

_____________________________
Legal Counsel

_____________________________
National President
_____________________________
Legal Counsel