WINSTON COMPANY INC AND WINSTON COMPANY UNION (WCU)

COLLECTIVE BARGAINING AGREEMENT

KNOWN ALL MEN BY THESE PRESENTS:
This collective Bargaining Agreement (herein called AGREEMENT) entered into this by and between:
WINSTON COMPANY INC., a Philippine Corporation, with principal office and place of business at_______________________________________,
represented herein by______________________, President and Chief Executive Officer, (hereinafter called COMPANY)
And
WINSTON COMPANY UNION (WCU) a Philippine Labor Organization with principal office c/o Samahang Manggagawa ng Pilininas (SMP),
at _______________________________________________represented herein by _______________________________, President (hereinafter called UNION).
WITNESSETH:
WHEREAS, the UNION has shown to the satisfaction of the COMPANY that it represents the majority of the personnel within
the bargaining unit, as hereafter defined under ARTICLE I hereof;
WHEREAS, it is the intent and purpose of the parties to this AGREEMENT to: promote and maintain
harmonious relations between them by establishing a clear understanding relative to the rates of pay,
hours of work and other conditions of employment of all professional and technical employees of the COMPANY
covered by this AGREEEMENT; by providing means for amicable settlement of all disputes; and, by otherwise mutually guaranteeing industrial peace and harmony between them.
NOW, THEREFORE, for and in consideration of the above premises, the COMPANY and the UNION hereby agree as follows:
ARTICLE 1
COVERAGE OF AGREEMENT
This AGREEMENT applies solely to all Covered Employees and covered positions.
As used anywhere in this AGREEMENT
a)
b)

A Covered Employee is any regular employee who holds a covered position listed under Job Levels VI to VIII of the COMPANYs Job Classification Plan except Supervisors and Assistant Managers of the
classification Plan. In case a job evaluation study would result to expansion of job levels, then the new job level category will be defined and discussed with the UNION, The membership of the Job Levels V
compromised. If new positions will be created, the COMPANY will inform the union about the said positions.
A Covered Position is any in the COMPANYs Home Offices or Provincial Offices which is listed under job levels VI to VIII of the COMPANYs Job Classification Plan.

The following personnel are considered paying non-members:

a)
b)
c)
d)
e)
f)
g)
h)

All WCU personnel;

all Financial Planning and Control personnel (formerly Budget Department);
All Financial Reporting Section personnel (formerly Finance Accounting) of Accounting Department.
Accounting Department, Treasury Management Department, and Legal with a job title of secretary or its equivalent as well as group/division secretaries.
MISD staff
Actuarial Staff
Executive secretaries
Product Development Officer

The following are not eligible for membership:

a)
b)
c)

Supervisors / Assistant Managers

Managers
Probationary and Temporary employees

The following positions will be considered full-pledged union members until their status is decided with finality by competent authority:
a)
b)
c)
d)

Branch Service Officers

Roving Branch Service Officers
STED Training Officers
Agency Development Officers

In cases where an employee formerly occupying a UNION covered position is transferred to exempt positions in any of these offices, said employee shall automatically cease to be a member of the UNION.
such movement prior to its effectivity.

The UNIO

ARTICLE II
UNION RECOGNITION
The COMPANY recognizes the UNION as the sole and exclusive collective bargaining representative for all its Covered Employees with regard to rates of pay, hours of work and other conditions of employment.
ARTICLE III
UNION MEMBERSHIP AND SECURITY
Section 1.
UNION MEMBERSHIP: Subject to ARTICLE I above, only a Covered Employee is eligible and may, at the option of such employee, apply for membership in the UNION.
In case he wishes to exercise said option, he shall do so by filling a written application for such purpose. Otherwise, he shall not be considered a member of the UNION.

Section 2.
UNION SECURITY: All Covered Employees who, on the date of the signing of this AGREEMENT, are members of the UNION or who may thereafter join the UNION, shall for as long as they are Cove
required to remain as such members in good standing as a condition for their continued employment by the COMPANY.

Section 3.
CHECK-OFF OF UNION DUES: Upon prior receipt of a check-off list from the UNION, the COMPANYs Human Resource Management Department (HRMD) shall, pursuant to such list, deduct from the C
take home pay an amount not to exceed such pay for the payment of UNION dues, fines, fees and/or assessments, and merit the same to the treasurer of the UNION. The Check-off list submitted by the UNION shall
respects by individual check-off authorization from the employees in the list which the UNION agrees to provide the HRMD together with copies of the members applications for UNION membership.
In case of special assessments, it is understood that notice thereof must be given to the COMPANY not later than the month prior to the month when the special assessment is due for deduction.
assessments shall specify the reasons, beneficiary and amount of assessment.

The individual auth

All deductions made by the COMPANY pursuant to the individual Authorization Check-off form signed by the member and the agency fees deducted from the salaries of non-members of the UNION in accordance with th
this AGREEMENT shall be remitted to the UNION President or Treasurer within fifteen(15) days from the regular end-of-month payroll payout date when the said deduction was effected.

Section 4.
AGENCY SHOP: A Covered Employee who is not a UNION member but is considered as paying members shall nevertheless pay an amount equal to UNION dues and fees in accordance with the forg
unreasonable refusal on his part to authorize such payment shall bar him from any additional benefit that the UNION may thereafter obtain for the Covered Employees through collective bargaining.

Section 5.
EFFECT OF LOSS OF MEMBERSHIP: Loss of membership with the UNION shall be ground for dismissal, except voluntary resignation from the UNION during the term of this AGREEMENT or any exte
the 60-day freedom period.

The UNION shall formally advise the COMPANY within two(2) working days of its action on the UNION member, and demand for his dismissal from employment whereupon the COMPANY shall proceed with such d
Expulsion from the UNION
Members of the UNION who cease to be members in good standing by reasons of resignation or expulsion from the UNION shall not be retained in the employment of the COMPANY.
be considered just causes for expulsion from the UNION and termination from employment by the COMPANY:
a:
b:
c:

For purposes of this section

failure to pay union dues after assessments imposed by the UNION;

resignation from the UNION for purposes of forming or joining another labor organization outside the 60-day freedom period; and
violation of any provision of the UNION Constitution and By-Laws.

In any of these cases, the UNION shall formally advice the COMPANY of its action on the employees and demand for his dismissal from employment; whereupon the COMPANY shall proceed with such dismissa
this provision shall be considered dismissal for cause and after observance of due process of law.

Section 6.
ADVICE OF TERMINATION: In case of expulsion of an employee from UNION membership which maybe a ground for termination of employment by the COMPANY upon the UNIONs recommendatio
advice the COMPANY thirty (30) calendar days prior to such termination to enable the COMPANY to look for suitable replacement.

Section 7.
FREE AND BLAMELESS: The UNION hereby undertakes to indemnify and hold, free and blameless, the COMPANY from any claim that may be made upon it for or on account of any termination of em
member reasons upon the request of the UNION.

ARTICLE IV
COMPANY AND UNION RIGHTS AND OBLIGATIONS

Section 1. COMPANY RIGHT AND PREROGATIVES:

The UNION recognizes the COMPANYs right to exercise the regular and customary functions of management and all rights and prerogatives inherent in the management and operations of the affairs of the COMPANY, p
rights and prerogatives shall not be used unreasonably nor to discriminate against employees, and any employee who feels aggrieved can avail of ARTICLE XVI: Grievance Machinery of this AGREEMENT.
Specifically, these prerogatives include but are not limited to the following:
a.
b.
c.

to lay down and execute COMPANY personnel policies provided such policies are not contrary to law, public order and are not enforced with grave abuse of discretion;
to transfer the location of operation provided such transfer is not prejudicial to the worker and do not constitute UNION busting;
to hire new employees and/or re-hire resigned employees provided it does not jeopardize the employment of present employees;

d.

to terminate=, suspend, lay-off employees for just cause and after observance of the procedural and substantive due process of law, if termination is due to authorized causes, the COMPNAY shall comply w
requirements of the law.
e.
To discipline and apply other forms of personnel action as provided for in the company Code of Discipline after such Code of Discipline and other disciplinary measures have been published and disseminated
In case of violation, such policies may be enforced only after the observance of procedural and substantive due process of law. The COMPANY agrees to furnish the UNION a copy of infraction and disciplinary action
members;
f.
To transfer and re-assign employees provided such transfer shall not result in diminution of benefits, loss of seniority rights or unfair labor practice;
g.
to promote employees, provide merit increases and incentive schemes as maybe determined by the COMPANY;
h.
Determine working conditions and hours of work of employees and as such shall provide employees with just and humane conditions of work; and
i.
Determine the size of the workplace as may be required by the business condition.

Section 2. UNION RIGHTS AND OBLIGATIONS: The UNION agrees that its members shall at all times render and perform the services customarily rendered by them in a first class manner and to the best of their ab
with the standards set by the COMPANY. The UNION shall furthermore assist the COMPANY in promoting discipline and healthy efficiency and increased productivity for the mutual benefit of the COMPANY and its
COMPANY shall recognize the right of the UNION to impose disciplinary action on its members for violation of reasonable UNION rules and regulations.

Section 3.
NON-DISCRIMINATION: The COMPANY shall not discriminate against any employee because of race, color, sex, creed, or political affiliation. There shall be no acts of discrimination, interference, res
coercion by both parties and any of their agents or representatives against any employee in the exercise of his/her rights as a member of the UNION or for any legitimate UNION activities.
ARTICLE V
EMPLOYMENT
Section 1.
a)
b)

DEFINITION: As used anywhere in this AGREEMENTa regular position is one so declared by the COMPANY at any time because the permanence or the need for it had already been ascertained by the COMPANY. Any existing position which is not regular is
A regular employee is one is appointed to a regular position after having satisfactorily completed his probationary period an requirements; and,

c)

A probationary employee is one who is hired by the COMPANY ON trial or probation for the purpose of occupying, if fit and qualified, a regular position in the COMPANY. He shall be required to serve a
period not exceeding six (6) months in order to determine his capability and fitness to hold the position on a regular and/or permanent basis. His regular appointment and any salary adjustment by reason therefore,
after he has satisfactorily completed such six (6) months of probation.

d)
Section 2.
Probationary Period: All probationary appointment of regular employees to a higher position shall be for a period of three(3) months and any salary adjustments by reason thereof shall be paid in a
existing rules on salary administration; provided, that for new hires of the COMPANY, the regular probationary period shall be six(6) months and his regular appointment and any salary adjustment by reason thereof,
after he/she has satisfactorily completed such six(6) months probationary period.
The Department Manager, however, has the option to waive the probation of an employee under his responsibility if such employee has been promoted to a position within the same section or department.

Section 3.
PROMOTION: It is the COMPANYs policy to promote employees from within to positions of higher or greater responsibility. To insure efficient and harmonious operations of the COMPANYS business,
and seniority shall be considered in case of promotions.
The employee may, at his option decline his/her promotion, which shall be respected by the COMPANY and such refusal shall not subject the employee to disciplinary action by the COMPANY.

Section 4.
PRIORITY OF EMPLOYMENT: Except as otherwise specifically provided in this AGREEMENT, a Covered Employee shall be appointed to a new or vacant regular position if he/she is found by the COMP
qualified or only qualified applicant from among the Covered Employees. In both instances, however the applicant should meet the basic requirements that fit such position, the setting of which the UNION leaves to t
COMPANY. For purposes of this provision, a Covered Employee shall be considered an applicant only if his application is filed with the COMNPANYs Human Resource Management Department (HRMD) within five (5)
the date the COMPANY announces the vacancy.
If the best qualified applicant or only applicant who is a Covered Employee satisfies the basic requirement for the position, excluding age unless such is a major consideration for the performance of the job, he
thereto as a probationary employee.
In the event no Covered Employee qualifies, or there are no qualified regular employee-applicants, the COMPANY shall then consider other sources.
Notice of vacancy for covered positions shall be posted in the COMPANY bulletin boards, after validation and approval of the manpower request, copy furnished the UNION.
appropriate job level.

The position to be internally adve

Section 5.
PERSONNEL MOVEMENT: Any employee due for transfer or promotion requiring his relocation shall be adequately advised about the rational for such relocation prior to the actual relocation. Further,
be qualified to perform or is believed by the COMPANY to be capable of learning the new position. Provided further, that before he receives his permanent appointment to the new assignment, if ion the opinion of
cannot satisfactorily perform the new assignment, the COMPANY will return him/her to his/her former position. In case of relocation, his expenses in connection therewith shall be borne by the COMPANY in a
COMPANY rules and regulations, unless the transfer in question was requested by the employee himself.

Section 6.
REVERSION POLICY: A Covered Employee who fails to meet the standards of the position to which he was promoted during his probation shall be given priority as candidate applicant to any job vacan
similar to his previous job if his reversion to his former position is not anymore possible. This provision shall apply only whenever there are no internal applicants who passed the work/hiring qualifications of the job vac
agreed order of priority in selection and placement of personnel for job vacancies.

Section 7.
LAY OFF DUE TO AUTHORIZED TERMINATION OF EMPLOYMENT: lay-off shall mean a reduction in the COMPANYs requirement for employees, in the event that it is imperative for the COMPANY
Employees, the following order of priority shall be observed:
a)

all contractual and probationary employees on a last-in first-out basis;

b)

prior to a proposed lay-off, Covered Regular Employees shall first be transferred to any job available in the COMPANY without reduction in pay, preferably to a position where his abilities can be maximized an
of the job is not very different from his previous job; and
c)
all things being equal, which shall mean Covered Regular Employee of the same qualification, capability and potential, Covered Employees shall be laid-off on the basis of seniority and those with the least sen
first.

In case of inevitable lay-off due to authorized termination of employment in accordance with Art. 283 of the Labor Code, the COMPANY and the UNION agree to first initiate a lay-off or retrenchment program by way of of
separation packages among Covered Regular Employees.

Such lay-off or retrenchment program shall apply the principle of Last-In, First-Out (LIFO), provided that those laid off or retrenched UNION members shall be given priority in re-hiring over new applicants t
any vacant position covered by this AGREEMENT within two (2) years from the date of separation; provided further that he has passed all basic recruitment qualifications and requirements.
The concerned Covered Employee and the UNION shall be given a written notice thirty (30) days prior to such lay-off or separation.
Section 8.

SENIORITY: Seniority shall be counted from the date the employee commences to work as a probationary employee. Seniority is lost in any of the following cases:

a)

If a regular employee resigns or is discharged for cause; and,

b)

if, after a regular employee is laid-off due to reduction of work load or suspension of service, he avails himself of and actually receives the retirement/separation benefits due him at the time of lay-of

Section 9.
COPIES OF POLICIES: In addition to what is provided by law, the UNION shall be informed and be given a copy of all COMPANY rules and regulations, COMPANY personnel policies
commendations, commission of offenses, disciplinary actions, and termination of employment) to covered Employees and all directives and reports related to security of tenure of the members.
Section 10.
UNION PARTICIPATION: In the event that the COMPANY may want to introduce new or revised any of its existing policies, the COMPANY recognizes the UNIONs right to participate in
decision-making processes if such will directly affect the Covered Employees rights, benefits and welfare as may be provided by law.

Section 11.
RIGHT TO HIRE AND DISCIPLINE: The COMPANY shall be at liberty to hire employees upon such compensation as may be agreed upon at the time of hiring. The COMPANY also guaran
tenure of every Covered Employee. Any perceived wrongful penalty imposed upon a Covered Employee may be raised in the Grievance Machinery outlined in ARTICLE XIV of this AGREEMENT.

ARTICLE VI
SALARY ADJUSTMENTS

Section 1.

SALARIES: The COMPANY shall grant to each Covered Employees as of September 01, 2009 an increase in his regular monthly salary on a three step schedule as follows:

First Step

TEN PERCENT (10%) effective September 01, 2009 of his regular monthly basic salary as of June 30, 2008 or P 1,250.00 whichever is higher.

Second Step

ONE THOUSAND ONE HUNDRED PESOS (P1,150.00) effective September 01, 2010.

Third Step

ONE THOUSAND ONE HUNDRED FIFTY PESOS (P1,150.00) effective September 1, 2011.

Section 2.
PAID HOLIDAYS: The COMPANY and the UNION hereby agree that the monthly salary of all employees covered by this AGREEMENT includes payment for all legal holidays as well as oth
as provided by the law, ordinance, or presidential proclamation.

Section 3. PROMOTION AND RECLASSIFICATION: The COMPANY shall grant an increase in basic salary of a Covered Employee who is promoted or whose position is reclassified upward. The incre
minimum rate of twelve percent (12%) of the minimum rate of the new or reclassified position rounded off to the next higher multiple of P5.00, whichever is higher. Provided, however, that as a result of any
employees new basic salary shall not be higher than the maximum rate of the new or reclassified position, or lower than its minimum rate. Otherwise, the increases shall be correspondingly adjusted. In cas
the increase shall take effect upon approval by the COMPANY. In case of promotion, the increase shall be granted only upon the employees successful completion of the probationary period for the position.

ARTICLE VII
HOURS OF WORK

Section 1.
WORKING HOURS: It is agreed that there shall be forty (40) normal working hours a week in the COMPANY, at eight (8) hours per day from Monday to Friday, schedule in accordance wit
schedules may be prescribed for certain departments or classes of employees due to the nature of their work or as may be required by the operations of the COMPANY. The existing schedule of working h
(excluded from the forty (40) hours of workweek) on the basis of thirty-nine (39) hours per work week to be spread over five (5) days of seven (7) hours per day from Monday to Friday and four (4) hours on
maintained.

Section 2.
HEAD OFFICE: The regular hours of work at the head office (except for employees in the Family Assistance Department) shall be flexi time from 7:30 8:30 AM to 11:30 AM and from 12:30
PM from Monday to Friday. This work schedule may be changed as may be required by the operations of the COMPANY.
Section 3.

COFFEE BREAK: The present practice of granting a 15-minute coffee break period in the afternoon which is counted as part of the employees hours of work during the day shall be maintaine

Section 4.
CHANGE OF WORKING HOURS: the present working hours shall be maintained for the duration of this AGREEMENT or any extension thereof; however, it is hereby agreed that the COM
the prevailing working hours, if in its judgment, it shall find such change or changes advisable or necessary, either as permanent or temporary.

Section 5.
GUARANTEE OF PAY: Any employee with regular shift, who, after reporting for work on the assigned work schedule, is sent home for lack of power, typhoon, flood, or other fortuitous events
of man which will endanger the life or seriously impair the health of the employee, shall be given the pay corresponding to a full shift for that work day.

ARTICLE VIII
PREMIUM PAY, OVERTIME PAY

Section 1.
RIGHT TO REQUIRE OVERTIME HOURS: The UNION agrees that the COMPANY may require any employee to render work on a holidays by the President of the Republic of the Philippines
afternoon (for employees on the thirty-nine (39) hours work week or in excess of eight (8) hours from Monday to Friday or four (4) hours during Saturday whenever considered necessary in an y aspect of i
activities provided it does not contravene the provisions of existing laws. No employee shall render either service beyond the regular working hours or services on Sunday, or special public holidays unless su
shall have been previously authorized in writing by the employees immediate superiors.
Section 2.

PROCEDURE FOR OVERTIME:

a)
Overtime shall be computed only by the hour and thirty minutes rendered. An excess of thirty minutes but less than an hour will be considered thirty minute overtime. Am excess of an hour
minutes will be rounded off to an hour only.
b)
Employees shall be given no less than two and a half hours prior notice of contemplated overtime work, except where such notice cannot be given because of circumstances over which the C
control.
c)
In working overtime before or after scheduled hours, employees regularly assigned to the position on which overtime work is required shall be given preference when available.
Section 3. DAILY AND HOURLY RATES: In computing the basic hourly rate of the monthly paid employees, the following formula should be followed:

AND NIGHT DIFFERENTIAL

Monthly Basic Salary X 12 months = Daily Rate

262 Days

Daily Rate = Hourly Rate

8 Hours

the above formula for computing basic hourly rate shall be used only for the purpose of computing overtime pay, vacation leave pay, sick leave pay, emergency leave pay, and deduction due to una
tardiness and under time.

Section 4.
OVERTIME AND NIGHT DIFFERENTIAL PAY: All Covered Employees who are required by the COMPANY to work during hours other than those specified in the first paragraph of Section 1
of the exigencies of the service or of the demands of the COMPANY operations shall render work beyond their regular office hours as a condition to their employment provided that
a)

the COMPANY shall pay regular overtime rate in accordance with law beyond the regular eight (8) hours work to Covered employees; and

b)

any covered Employee shall be paid night differential rate in accordance with law between 10:00 PM and 6:00 AM.

Section 5.

PREMIUM RATES: Any work performed on Sundays, special, and legal holidays shall be compensated in accordance with existing laws.

The COMPANY shall each year grant bonuses to Covered Employees in accordance with the following rules:
A Mid-year bonus equivalent to TWO HUNDRED PERCENT (200%) of the monthly basic salary shall be paid by the COMPANY under the following Schedule.

1.
ONE HUNDRED PERCENT (100%) of the monthly basic salary on or before April 30 of each year. The measure of said bonus shall be the Covered Employees basic salary as of January 01 of the
bonus is given to a Covered Regular Employee who has worked with the COMPANY from January 01 to December 31 of the payout year. In case of separation after payout within the year, the amount of the
the period from the date of separation to December 31 of the same year shall be deducted from the employees last pay.

2.
ONE HUNDRED PERCENT (100%) of the monthly basic salary on or before May 30 of each year. The measure of the said bonus shall be the Covered employees basic salary as of May 30 of the sa
paid only to a Covered Employee who is in the actual service of the COMPANY on the date the bonus becomes due; provided, that a Covered Employee who resigns or is retired or whose employment is term
fault before a bonus becomes due, shall, if he would otherwise be entitled to such bonus or to any portion thereof had his employment continued, be paid the same less that proportion of his monthly basic s
between the date of his resignation or termination and the date of the said bonus

ARTICLE IX
BONUS

ARTICLE X
LEAVES

Section 1.
VACATION LEAVE WITH PAY: A Covered employee shall be entitled to vacation leave with pay of seventeen (17) working days for every year of service upon regularization and completion
continuous service (from the date of probationary appointment). However, newly hired employees after the CBA signing will be entitled to fifteen (15) days vacation leave with pay after one (1) year of continuo

Twelve (12) vacation leave credits shall be scheduled for availment and to be arranged by the Covered Employee with the Department manager or AVP-in charge, such schedule by the department sh
HRMD not later than January 15th of each year. The other five (5) vacation leave credits should be taken in accordance with the COMPANYs established rules and regulations on vacation leaves.

All unused vacation leave credits earned may be accumulated without forfeiture or enjoyed by the employee upon approval by the proper authorities in the COMPANY. These leaves are commutable
existing COMPANY rules and regulations.

A maximum of forty five (45) vacation leave credits may be accumulated by an employee during his tenure with the COMPANY. All vacation leaves which are in excess of forty five (45) must be take
31st of the given year, otherwise the same shall be forfeited.
Accumulated vacation leave may be taken pursuant to existing COMPANY rules and practices, and subject to the approval of the proper Executive Level.
Unused vacation leave credits shall be converted to cash in the following cases:

a)

that a scheduled vacation leave is deferred by the COMPANY due to exigency of the service and deferment or re-scheduling for another date shall result to forfeiture of his leave credits; and

b)
when the employee resigns and/or retires from the company except that in case of money and/or property irregularities, the cash conversion shall be applied to whatever liabilities of the employee to the C
lien, subject to tax as required by law.

If a holiday falls during the employees vacation, it shall not be considered part of the employees vacation and be entitled to his leave credit to compensate for the holiday. It shall not, likewise, extend his vaca

Section 2.
SICK LEAVE WITH PAY: Sick leave with pay of seventeen (17) days for every year of service (from the probationary appointment) shall be granted to Covered Employee who has rendered
for at least one (1) year (from the probationary appointment). However, newly hired employees after the CBA signing will be entitled to fifteen (15) days of sick leave with pay after one (1) year of continuous se
A Maximum of forty five (45) unavailed sick leave credits may be accumulated.
Unused sick leave credits may be converted to cash in the following cases:
a)

all unused sick leave credits in excess of the maximum forty five days accumulation by December 31 st of any given year shall be converted to cash and aid in January of the succeeding year; or,

b)

50% of current unused sick leave credits shall be converted to cash and paid in January of the succeeding year.

Section 3.
EMERGENCY LEAVE: The COMPANY shall grant every covered Employee who has rendered at least one (1) year of continuous service an emergency leave with pay of Five (5) workin
continuous service which is non-cumulative for the following reasons:
a)
b)
c)
d)
e)

Illness, hospital confinement or death of an immediate family member

death of relative as defined;
Calamities and natural disasters affecting the employee.
Paralyzation of transportation affecting the employee
During Coup d Etat affecting the employee.

Relatives shall mean legitimate spouse, child, parents and parents-in-law, in case of married employees. For single employees, relatives shall mean legitimate parents, brother, sister, or child.

Section 4.
BEREAVEMENT LEAVE: A covered Employee shall be entitled to bereavement leave not exceeding three (3) working days of each year to attend to the death of an immediate member of the
which shall be limited to spouse, children, brothers, sisters, parents and parents-in-law. Bereavement leave shall not be accumulated no commuted to cash.
Section 5.

MATERNITY LEAVE: All Covered Female Employees shall be extended maternity leave benefits in accordance with and pursuant to the provision of existing laws.

Section 6.

PATERNITY LEAVE: A covered Male Employee shall be entitled to paternity leave benefits in accordance with and pursuant to the provision of existing laws.

Section 7.

LEAVES / TIME-OFF FOR UNION REPRESENTATIVE: The COMPANY shall grant duly authorized representatives of the UNION leaves or time-off in accordance with the following guideline

UNION Leaves

The UNION shall be granted a UNION leave with pay equivalent to forty (40) working man days per year for the UNION activities and seminars sponsored by institutions of learning in the Philippines.
shall be for a minimum of one-half (1/2) day up to maximum of forty (40) per year; unavailed UNION Leaves after the end of a year shall not be accumulated nor commuted to cash.

Union leaves may be simultaneously availed by not more than two (2) UNION members/officers belonging to the same department at any time. A formal and approved certification from the con
manager should be forwarded to the Human resources Management Department three (3) working days in advance of the intended date of such UNION activity on training seminar. Submission of a certifi
attendance shall be required after attendance to such activity seminar.

UNION Time-Off

UNION officers/members shall be allowed time-off with pay for handling CBA negotiations, grievances, arbitration hearings, and other UNION related activities when their presence are required
Provided that not more than two (2) UNION representatives shall attend grievance hearings and not more than three (3) for arbitration hearings. Prior written notifications, as noted by the concerned C
department head, shall be given in writing three (3) working days in advance to the COMPANY through the Human Resource Management Department indicating, among others, the intended date of such
training seminar.

ARTICLE XI
SAFETY, MEDICAL, INSURANCE, AND HEALTH CARE

Section 1. HEALTH CARE BENEFITS: The COMPANY shall provide at its own expense a PHILAMCARE PLAN for the health care and hospitalization needs of Covered Employees, such plan shall pr
maximum benefit schedule.

Daily room and board

Maximum sum per illness -

Private P800.00
P 75,000.00

At the option of the employee, the COMPANY shall also provide similar coverage to dependent children of employees who are below 21 years old and unmarried, provided that the employee shall sha
and COMPANY shall shoulder 65% of the cost, of such dependent coverage.

Section 2. GROUP MAJOR MEDICAL INSURANCE: The COMPANY shall provide Group Major Medical hospitalization insurance for all covered employees with a maximum sum payable equal to P 75
under this coverage shall be payable only ion cases wherein the maximum amount per illness under the Health Care coverage under Section 1 of this ARTICLE had been exceeded.
Section 3. MEDICINE ALLOWANCE: The Company shall grant to all Covered Employees reimbursement of medical expenses which may incur for their personal use.
THOUSAND PESOS (2,000.00) a year, as supported by medical certificate and official receipts. These benefits shall be non-cumulative and non-commutative is unavailed.

Such reimbursements sha

Section 4. DENTAL BENEFIT: The COMPANY shall provide free dental services to Covered Employees based in the Head Office or within the Metro Manila area. For provincial office employees, such de
shall not exceed ONE THOUSAND PESOS (1,000.00) per year.

The COMPANY shall exert its best effort to continue with the arrangement whereby such dental services are administered at the U.N Philamlife Dental Clinic for Metro Manila based employees. Emplo
and branch office may avail of the services of any dental clinic of their choice. Dental services under this section shall be limited to dental treatment, filing, simple extraction, and yearly prophylaxis, charge
based on the prevailing dental service rates provided by Philamlife Dental Clinic.

Section 5. OPTICAL ASSISTANCE: The COMPANY shall provide reimbursement for expenses incurred in the purchase of prescription eyeglasses on lenses in the amount of TWO THOUSAND PESOS (2
years upon availment. Actual reimbursement shall be based on submitted receipts. These benefits shall be non cumulative and non-commutative.

Section 6. GROUP LIFE / ACCIDENTAL DEATH AND DISMEMBEREMENT BENEFIT: The COMPANY shall provide all Covered Employees with a Year Renewable Term Group Life and Accidental Dea
insurance coverage in accordance with the following schedule:
Life Insurance P150,000.00
Accidental Death and Dismemberment P150,000.00

The COMPANY shall shoulder ONE HUNDRED PERCENT (100%) of the cost of the above coverage. A provision shall be included in the insurance contract which will allow a Covered Employee to conv
permanent plan of insurance upon resignation or retirement from the COMPANY, with the employee paying all the premiums of the converted insurance policy.
Section 7. SAFETY: The COMPANY shall comply with the Occupational Health and Safety Standards in providing adequate safeguards against accident, maintain conditions.

ARTICLE XII
RETIREMENT AND SEPERATION BENEFITS

Sections 1. NORMAL RETIREMENT BENEFIT: The normal retirement date of an employee shall be the first of the month following his or her sixtieth (60 th) birthday. The retirement benefit of such emplo
sum amount equal to 150% of Final Basic Monthly Salary for each year of service.

Section 2. SEPERATION BENEFIT: Upon separation from employment prior to the normal retirement date, unless such separation is for cause, an employee shall be entitled to the following percen
computed in accordance with the normal retirement date formula, with 1.5 final basic monthly salary and years of service calculated as of the date of separation:

Completed Years Of
Percentage
Continuous Service
Payable
Less than 5
5-9
20%

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%

25 or more

Section 3. MAXIMUM BENEFIT: It is understood that in applying the benefit provisions under Section 1 and Section 2 above, the benefit to be received by a qualified employee shall not be less than that prov

100%

ARTICLE XIII
OTHER EMPLOYEE BENEFITS

Section 1. MEAL SUBSIDY: The COMPANY shall provide a meal subsidy to all Covered Employee equal to SEVEN HUNDRED PESOS (P700.00) per month.
Section 2. SALARY LOAN PROGRAM: The COMPANY shall provide a salary loan program subject to terms and conditions as the COMPANY may establish from time to time.

Section 3. BEREAVEMENT ASSISTANCE: The COMPANY shall continue with the existing bereavement assistance program in case of death of the Covered Employee or in case of death of an immediat
the Covered Employee. For a single employee, immediate members shall mean the parents, brothers, and sisters. For a married employee, immediate members shall mean the parents, legitimate spouse an

Section 4. CALAMITY ASSISTANCE: The COMPANY shall continue with the existing calamity assistance program to Covered Employee who suffers financial loss due to damage or loss of property brought
such as fire, flood, and typhoon. The COMPANY share for this program is P7,500.00 while the employees share is P10.00 per Covered Employee. Adequate proof of loss as may be required by the COMPA
before a Covered Employees can avail of this assistance.
Section 5. MATERNITY ASSISTANCE: The COMPANY extends the following maternity assistance for leally married regular employees:

P5,000.00

due to pregnancy related emergencies (e.g. ectopic pregnancy, unintentional abortion, miscarriage)

P5,000.00

normal delivery

P10,000.00

caesarian delivery

The assistance may be availed of by a married regular male employee for his dependent (non-employed) legal spouse for the same reasons.
pregnancy/child birth is required prior to availment.

The maternity assistance may be availed of for a maximum of two (2) cases of live births and two (2) cases of pregnancy related emergencies during the term of employment of the Covered Emp
Employee should submit substantial proof of such emergency prior to availment.
Past availment of the Child Spacing Program shall be counted as availment of this assistance accordingly.
signing of this AGREEMENT.

This maternity assistance shall supersede any existing COMPNAY policy on Child Spa

Section 6. BULLETIN BOARD: The COMPANY shall provide the use of a COMPANY Bulletin Board at the Head Office. The COMPANY shall allow the UNION to post informative materials in the COMPAN
the Head Office and in all branch offices nationwide, provided that the materials posted therein are not derogatory in nature. The same should be duly signed by the UNION president and forwarded to the
Management Department for review prior to its posting.

Sufficient proof of said spouses non-employm

ARTICLE XIV
GRIEVANCE MACHINERY

The parties hereto agree on the principle that all disputes between labor and management may be settled through friendly negotiations; that the parties have the same interest in the continuity of work u
disputes shall have been discussed and settled; that an open conflict in any form involves losses to the parties and that, therefore, every effort shall be exerted to avoid such an open conflict. In furtheran
principle, the parties have agreed to establish a procedure for the adjustment of grievance so as to: (1) provide opportunity for discussion of any complaint: and (2) establish procedure for the processin
grievance.

Section 1. GRIEVANCE PROCEDURE: Any grievance, dispute or complaint which a Covered Employee or the Association may have against the COMPANY (a) relative to the meaning, interpretation an
terms of this AGREEMENT, or (b) arising out of the employment relationship, shall be submitted to the grievance machinery with the following procedure:

STEP 1. The covered Employee shall present his grievance, dispute or complaint in writing to the COMPANYs Department Head in-charge and to the UNION director or his duly authorized represen
(30) calendar days after the alleged cause of grievance arose. The Department Head in-charge shall conduct a hearing within tw0 (2) working days upon receipt of the grievance if necessary, he may
hearings thereafter to clarify facts and issues concerning the grievance. The Department Head in-charge shall render a decision of the grievance in writing within ten (10) consecutive working days from
hearing.
If in case the Department Head in-charge fails to render a decision within the prescribed period, the case shall be deemed closed in favor of the aggrieved employee.

If the employee is not satisfied with the decision rendered by the Department Head in-charge, the employee may elevate the unresolved grievance to Step II in writing and within seven (7) working days
aforesaid decision. Any grievance not presented within the prescribed period shall be deemed waived and shall not be considered /entertained.
STEP II. The Division Head in-charge shall render a decision in writing within ten (10) working days upon receipt of grievance.
That if the Division Head in charge fails to render a decision within the prescribed period, the case shall be deemed closed in favor of the aggrieved employee.
If the employee is not satisfied with the decision rendered by the Division Head in-charge, the employee may elevate the unresolved grievance to Step III in writing and within seven (7) working days
aforesaid decision. Any grievance not presented within the prescribed period shall be deemed waived and shall not be considered/entertained.

STEP III. MANAGEMENT-UNION GRIEVANCE COMMITTEE. The COMPANY and the UNION shall set up a Management Association Grievance Committee to be composed of three (3) representa
COMPANY and UNION. The Committee shall act upon all grievances reaching it in accordance with Step II of the grievance procedure. The COMPANY shall appoint the chairman of the Committe
COMPANYs representatives.
STEP IV. If no resolution is reached within ten (10) consecutive working days, the grievance shall be referred to a voluntary arbitrator through the Management Union Grievance Committee.
Where the grievance or complaint involves the UNION directly, Steps I and II of the foregoing procedure shall be omitted and only Steps III and IV shall be followed.

Section 2.
SELECTION OF VOLUNTARY ARBITRATOR: To determine the voluntary arbitrator, the UNION and COMPANY will each submit five (5) names of arbitrators accredited by the Depart
Employment, if either party fails to submit the list of names within fifteen (15) days or if no agreement could be reached as to who should be the arbitrator from the names submitted by both, the matter o
referred jointly by the COMPANY and UNION to the National Conciliation and Mediation Board (NCMB) of the DOLE. The NCMB shall propose the voluntary arbitrator. If acceptable to both COMPAN
voluntary arbitrator shall thereafter act with the same force and effect as if he has been selected by the parties themselves. If the voluntary arbitrator as proposed by the NCMB is unacceptable to either par
may submit the grievance to the Department of Labor and Employment for compulsory arbitration.

Section 3. LIMITATION ON THE POWER OF VOLUNTARY ARBITRATOR, FEES, AND EXPENSES: The arbitrator shall have no power to add to, subtract from, or modify any of the terms of this AG
agreement made supplementary hereto. Furthermore, the arbitrator shall not rule on proposed amendments to or modifications of this AGREEMENT or its extension or renewal. The arbitrator shall decide on
as defined in Section 1 of this article. The arbitration fees and expenses shall be borne equally by the COMPANY and the UNION.

Section 4. PRECLUSION: The above procedure in no way precludes an employee from discussing any complaints which may be a legitimate grievance as defined above with his immediate superior, a
UNION Shop steward.

Section 5. SHOP STEWARD SYSTEM: The UNION Shop Stewards shall be recognized as the UNION representatives in their areas of assignment. The UNION shall provide management with the
stewards and their duties and responsibilities subject to the existing policies, rules, regulations, guidelines of the COMPANY and provision of the Collective Bargaining Agreement.

Section 6. employee personnel file: If employment records are deemed necessary to resolve cases filed against an employee, the concerned employee may request against an employee, the concer
request for and be given copies of his/her records of training, written orders issued to him, letters of appreciation and/or commendations and/or letters of any form of disciplinary action within five (5) working d
such request by the Human Resource Management Department.

All disciplinary actions imposed on employees that were fully served shall be retained in their personnel 201 files for two (2) calendar years. After which, these shall be filed separately at the onset of th
following the prescribed period of retention for reference purposes.

The COMPANY and the UNION shall jointly establish a labor management council:

Section 1. PURPOSE OF THE LMC: The purpose of this council shall be to serve as a non-adversarial forum for frank and sincere discussions of matters which are of mutual interest to the COMPNAY an
hoped by both panels that the council will become an effective vehicle for enhancing communication between MANAGEMENT and the UNION and that it will help promote the spirit of mutual trust and cooperat

Through the Council, both the COMPANY and the UNION shall seek to arrive at a mutual agreement on issues and matters brought to its attention. If, despite sincere and honest efforts to do so, such
be reached, then both the COMPANY and UNION shall try their best, in good faith to find other amicable means of coming to a consensus, and even if these attempts to fail to resolve the issues amicably, th
seek other remedies.

Section 2. SUBJECT MATTERS: Subject matters pertaining to employee-employer relations, productivity, sanitation, health and safety, training and any other subject matter not falling within the purview
grievance may be deliberated on with the approval of the majority of the total membership of the Labor Management Joint Consultation Council shall be referred to the President of the COMPANY for his
approval.

ARTICLE XVI
PROMOTION OF FAMILY PLANNING

The parties agree to promote responsible family planning in the bargaining unit. Towards this end, the COMPANY and the UNION agree to jointly undertake the education of all Covered Employees
during the duration of the above-mentioned Collective Bargaining Agreement.

ARTICLE XV
LABOR MANAGEMENT COUNCIL

ARTICLE XVII
PROMOTION OF A DRUG FREE WORKPLACE

The parties agree to promote a drug-free workplace in accordance with existing laws. Towards this end, the COMPANY and the UNION agree to jointly undertake advocacy training and educa
Employees on the adverse effects of dangerous drugs and monitor employees susceptible to drug abuse during the duration of the above mentioned Collective Bargaining Agreement.

ARTICLE XVIII
EMPLOYEES EDUCATION AND DEVELOPMENT PROGRAM

The parties, conscious of the fact that education, technical know-how, and development of the employees area of great relevance and importance to achieve more productivity, industrial peace, a
business operations hereby agree to undertake a joint venture designed to educate and develop the employees of their respective duties and responsibilities as employees and citizens of our society.

ARTICLE XIX
IMPLEMENTATION OF THE PROVISIONS

Section 1. GUIDING PRINCIPLES IN IMPLEMENTATION: The COMPANY and the UNION agree to use their best influence to enforce compliance with most the spirit as well as the letter of this AGREEME
shall issue rules and regulations or exert any effort or pressure on members individually nor collectively that may be in conflict with any provision herein contained.

Section 2. CIRCULATION: Copies of this AGREEMENT shall be printed in pamphlet form and distributed to all employees covered by this AGREEMENT and five (5) copies to the UNION at the expense
within sixty (60) calendar days from the date of the signing of this AGREEMENT.

ARTICLE XX
NO STRIKE NO LOCKOUT

During the term of this AGREEMENT, the COMPNAY shall not resort to a lockout, and neither shall the UNION or any of its officers or members, nor any Covered Employee, authorize or engage in a str
or interruption, slow-down, or any activity which tends to impede or hamper any or all phases of the COMPANYs normal operations.
ARTICLE XXI
SAVING CLAUSE

Should any part of this AGRREMENT be rendered invalid by law, the remaining portion shall remain in full force and effect.

ARTICLE XXII
WAIVER CLAUSE

The parties acknowledge that during the negotiations which resulted in this AGREEMENT, each had the unlimited right and opportunity to make demands and proposals with respect to any subject or m
by law from the area of collective bargaining and that the understanding and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this AGREEMENT. Therefore,
the UNION, for the lifetime 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 subject or m
covered in this AGREEMENT even though such subject or matter may not have been within the knowledge or contemplation of either or both of the parties at the time they negotiated or signed this AGREEMEN

ARTICLE XXIII
DURATION OF AGREEMENT
The representation provision of this AGREEMENT shall be in full force and effect for three (3) years commencing on September 01, 2008 to September 1, 2011.

The economic and non-economic provisions of this AGREEMENT shall be in full force and effect for three (3) years counted from September 1, 2008 subject to re-negotiation within sixty (60) days befo
the third year. It shall be understood to continue from year to year thereafter unless within sixty (60) days prior to the expiration of the third year, either party gives a written notice to or supplement the e
economic provisions of this AGREEMENT.
The terms of this AGREEMENT shall remain in force during the negotiations for a new agreement and until such new agreement has been finally entered into.