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Collective Bargaining Agreement
Collective Bargaining Agreement
The Corporation, a corporation duly organized under existing laws with office
and plant address at ______________________________ Metro Manila hereinafter
referred to as the COMPANY;
- and -
WITNESSETH: That
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;
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 rank-
and-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 5. Definitions -
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.
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.
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.
ARTICLE II
UNION SECURITY
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 the Agreement
except as allowed by law; and
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.
ARTICLE III
CHECK-OFF
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 COMPANY’s 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
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;
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.
An employee who passes the trial period and is thus promoted shall be granted a
promotional increase as follows:
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 laid-
off 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 per-
section 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 Company’s
retirement plan, whichever is higher
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
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 worker’s 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.
ARTICLE VII
RESPONSIBILITIES OF THE PARTIES AND INDUSTRIAL PEACE
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
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 Manager’s 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 Arbitrator’s award is permitted by law.
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:
(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 COMPANY’s 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 COMPANY’s 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.
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:
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
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).
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
ARTICLE XI
OVERTIME/PREMIUM PAY AND NIGHT DIFFERENTIAL PAY
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:
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 employee’s
regular basic wage.
ARTICLE XII
LEAVES OF ABSENCE
(a) Any employee within the bargaining unit shall be granted vacation leave with pay
every calendar year in accordance with the following schedule:
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 employee’s preference for the days of their
scheduled leave, subject to the exigencies of the service of the COMPANY.
(a) Any employee within the bargaining unit shall be granted sick leave with pay every
calendar year in accordance with the following schedule:
(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.
(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.
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.
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 - Paternity leave of seven (7) days shall be granted
to qualified employees.
ARTICLE XIII
MEDICAL, DENTAL AND HOSPITALIZATION BENEFITS
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 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
(a) To all employees - 2 smocks with head caps each and, if necessary, face masks
to production employees
(b) Slippers
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 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 monthly-
paid employees. Those who will resign without completing the calendar year shall be
entitled to a proportionate amount of the benefit.
10 years - 65%
11 years - 70%
12 years - 75%
13 years - 80%
14 years - 85%
15 years - 90%
16 years - 95%
17 years - 100%
18 years - 105%
19 years - 110%
20 years & above - 115%
- 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)
(a) Actual work or COMPANY-demanded waiting time of less than four (4) hours -
50% of basic daily wage
(b) Actual work or COMPANY–demanded waiting time of more than four (4) hours -
100% of basic daily wage
SECTION 10. Loyalty Award - The COMPANY shall grant a loyalty award to every
regular employee as follows:
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 child’s
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
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 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.
_____________________________ _____________________________
Corporation EU – FFW
By: By:
_____________________________ _____________________________
General Manager President
_____________________________ _____________________________
Human Resources Manager Vice-President
_____________________________ _____________________________
Manufacturing Manager Secretary
_____________________________ _____________________________
Finance Manager Treasurer
_____________________________ _____________________________
Legal Counsel National President
_____________________________
Legal Counsel