COLLECTIVE NEGOTIATION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Collective Negotiation Agreement made and entered into by and between:

The SUGAR REGULATORY ADMINISTRATION (SRA), a Government

Owned and Controlled Corporation (GOCC) created by virtue of Executive Order
No. 18 dated 28 May 1986, as amended, with principal office at the Philippine
Sugar Center Building, North Avenue, Diliman, Quezon City, herein represented
by its Administrator, HERMENEGILDO S. SERAFICA, hereinafter referred to
as the "MANAGEMENT".

-and-

The SUGAR REGULATORY ADMINSTRATION EMPLOYEES

ASSOCIATION OF THE PHILIPPINES, INC. (SUGAREAP), a duly
registered labor union/association with Registration Certificate No. 052 issued by
the Civil Service Commission (CSC) on the 29th of April 1988, and is represented
by its National President, MARCO D. SORIANO, hereinafter referred to as
"SUGAREAP".

WITNESSETH:

WHEREAS, the 1987 Philippine Constitution provides, among other, the right of the
people, including those employed in the public and private sectors, to form unions, associations
or societies for purposes not contrary to law (Sec. 8, Art. III),

WHEREAS, the Constitution also provides: "The State affirms labor as primary social
and economic force. It shall protect the rights of workers and promote their welfare" (Sec. 18,
Art. III);

WHEREAS, SUGAREAP is the only accredited organization of the SRA for the purpose
of collective negotiation,

WHEREAS, the purpose of SUGAREAP and MANAGEMENT to enter into this

agreement is to foster and promote harmony, efficiency and productivity in the SRA through the
provision of better working conditions;

NOW THEREFORE, for and in consideration of the foregoing premises the parties
hereby agree and stipulate as follows:

ARTICLE I

RECOGNITION

Section 1. Recognition of Association - The MANAGEMENT hereby recognizes the

SUGAREAP as the sole and exclusive negotiating representative for all rank-and-file employees
of the MANAGEMENT with respect to terms and conditions of employment not otherwise
mandated by law, as well as the working relationship, benefits and privileges that may be agreed
upon.

Section 2. SUGAREAP Bacolod Chapter — The MANAGEMENT also hereby

recognizes SUGAREAP-Bacolod Chapter. SRA Bacolod Employees may elect their own

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 President, which shall be called the Chapter President, among SRA Bacolod Employees duly
endorsed to run. They may also elect other officers to constitute the officers of SUGAREAP-
Bacolod Chapter. But in no case, the Chapter shall continue to be under SUGAREAP and is
bound by SUGAREAP rules and regulation.

ARTICLE II

DEFINITION OF THE NEGOTIATING UNIT

Section 1. The Negotiating Unit - shall consist of all rank and file employees of the Sugar
Regulatory Administration. Rank and File employee refers to an employee in the public sector
whose employment category does not fall in any of the following classification: coterminous,
high-level, or highly confidential, as defined under the Amended Rules of Executive Order No.
180. The actual duties and responsibilities of the employee shall also be considered in
determining eligibility of membership. Rank-and-file employees are those employees belonging
to salary grade 1 up to grade 24 (Division Chief Level). Also excluded are that type of work
engagement classified as Contract of Service or Job Order wherein no employer-employee
relationship exist between the management and the worker. However, employees who already

c>7 members of the association prior to the issuance and designation order for them to perform
managerial functions, their membership to the association shall be deemed suspended for the
duration of the designation.

ARTICLE III

COVERAGE

Section 1. ('overage- This Agreement shall cover all employees of the MANAGEMENT
except those specifically excluded by Executive Order No. 180 and its Implementing Rules and
Regulations and Civil Service Commission Rules and Regulations.

ARTICLE IV

ASSOCIATION SECURITY

----- Section 1. Membership of the SUGAREAP —All employees who are members of the
Association on the date of the signing of this Agreement, as well as all employees who
subsequently become members of the SUGAREAP during the effectivity of this Agreement shall
--- maintain their membership of good standing with the SUGAREAP for the duration of this
.._..,_ Agreement. It is understood that all members of the Association have appointment duly attested
by the Civil Service Commission or any of its regional/field offices. A Certificate of
Membership shall be given to all members.

Section 2. Check-Off - The MANAGEMENT agree to continuously collect for

SUGAREAP through payroll deduction from all members and non-members who benefited by
this Agreement, monthly dues as well as other existing collections made before the signing of
this Contract upon written authorization from SUGAREAP member. However, payroll
deduction of special assessments, or any other extraordinary fees, which may be collected in the
future, shall be in accordance with existing law, rules and regulations.

Likewise, all collections, including chapters in Bacolod and La Granja shall be remitted
to the SUGAREAP, Quezon City by MANAGEMENT within fifteen (15) days after they are
effected.

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 Section 3. Agency Fee — refers to a reasonable assessment equivalent to the dues and
other fees regularly paid by members of the sole and exclusive negotiating agent to be deducted
from the CAN Incentive of non-association member. The MANAGEMENT shall deduct and
remit the said Agency fee to SUGAREAP.

Non-association members who refuse or fail to pay the Agency Fee as aforesaid, shall not
be entitled to receive any benefits that may be granted by virtue of this Agreement, unless
otherwise mandated by Civil Service Commission (CSC)/Department of Budget (DBM) rules
and regulations applicable on the matter.

ARTICLE V

ASSOCIATION OFFICE

Section 1. Association Office - The MANAGEMENT shall continue to provide the

SUGAREAP the existing adequate space with the necessary furniture and fixture within the
MANAGEMENT premises for its usual and regular conduct of official and business activities.
(>
_?7However, as soon as SUGAREAP ceases to be the exclusive bargaining unit, the aforesaid office
space and equipment must be returned to the MANAGEMENT within a reasonable time
therefrom.

Section 2. Association Office Subsidy - The MANAGEMENT shall pay for the following
r- operating and maintenance expenses of the SUGAREAP Office: water, electrical, janitorial, and
use of office equipment.

ARTICLE VI

ASSOCIATION ACTIVITIES

Section 1. Association Meetings - The SUGAREAP shall be allowed to conduct one (1)
regular meeting per month and such special meetings, as may be deemed necessary for
information and educational purpose, during office hours. The MANAGEMENT shall allow the
SUGAREAP to use all available facilities for such meetings, provided it is not in conflict with
the schedules of the MANAGEMENT, subject however, to prior notice of at least one (1) day
before its meetings and the exigency of the service.

Section 2. Association Projects - The MANAGEMENT shall allow the SUGAREAP to

undertake certain projects or activities, which the latter may deem beneficial to its members,
provided they are not contrary to law, public morals or MANAGEMENT policies.

Section 3. Union Time-Off - The MANAGEMENT shall grant an Union Time-Off with
pay to selected officials and members of the SUGAREAP to attend workers' education,
programs, seminars, meetings, convections, conferences and leadership training subject to the
condition that prior notice must be given to the immediate supervisor and provided that delivery
of service will not be prejudice when said officer or member goes on union time off. Expenses
in connection with such activities, however, shall be shouldered by SUGAREAP. On a case-to-
case basis, the MANAGEMENT may allow participation in activities outside the country on
official time only, subject to applicable guidelines on foreign travel.

Section 4. Use of Service Vehicles - The MANAGEMENT shall allow the SUGAREAP
to use its service vehicles in attending official activities called by any government agency,
DBM/CSC/DILG/SRA/DA or accredited organization on matters concerning the welfare of the
employees, subject to availability of vehicles and dispatching rules.

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 Section 5. Clearance front the SUGAREAP - Where an association member is separated
from the service regardless of any reason, a clearance as to money accountability due to
SUGAREAP shall be secured first from the SUGAREAP by said employee before the
MANAGEMENT may grant a complete clearance.

ARTICLE VII

MANAGEMENT AND SUGAREAP RELATIONS

Section 1. Shuttle Service —The MANAGEMENT will provide; I) Shuttle Service; 2)

Financial subsidy and other heeded support to make the Botika ng Bayan more
accessible to them; 3) Scholarships programs for their children with siblings; and, 4)
PX mart that sell affordable commodities and the provision of its seed fund, as
provided and mandated by Memorandum Circular No. 174, dated May 13, 2009.

Section 2. Recreation Area - The MANAGEMENT shall provide a permanent area for
ief_)7 recreational purposes. It shall likewise provide the necessary physical fitness, sports and/or
recreational equipment and facilities for use of all SRA employees free of charge.

Section 3. Housing for the Employees - Cognizant of the well-being of the employees, the
MANAGEMENT shall provide its employees a better quality of life by extending them a shelter
program especially the low-salaried employees. Cost and expenses for said housing projects,
shall be paid and for the account of the employees themselves through the usual housing
financial assistance by concerned agencies of the government or other financial institutions. In
recognition of this, MANAGEMENT shall continue to pursue the implementation of the housing
program both in Bacolod and Quezon City. Respective Housing Committees shall oversee the
completion of existing projects for SRA employees, including the unfinished portion of the
SUGARTOWNE Housing project.

Section 4. Transaction with Government Offices — All SRA employees who have
transaction with Government offices such as, but not limited to GSIS, Pag-Ibig, DFA, NSO, NBI
and Ombudsman for clearance related or incidental to employment shall be considered on
official time, subject to the exigency of the service and the usual notification requirements. In
addition, the Management and the Association shall assist and educate the employees on various
transactions such as, but not limited to salary loans, housing loans and retirees on the release of
retirement pay from GSIS, Pag-Ibig and other government agencies.

Section 5. Aside from the regular health care being provided by PhilHealth, the
MANAGEMENT shall include ANNUAL MEDICAL CHECK UP for all officials and
employees of the Sugar Regulatory Administration as stated in Component 4.6 (Employees
Welfare and Services) of SRA's Career and Personnel Development Plan. The amount of annual
medical and physical examination must be based on the actual cost of the medical and physical
examination availed of by the SUGAREAP members. For this purpose, MANAGEMENT shall
contract out reputable medical institution where the SUGAREAP members will undergo the
necessary medical/dental check-up. The expenses incurred will be directly paid by the
MANAGEMENT to the account of the medical institution.

Section 6. The SUGAREAP recognizes that fair wages/salaries and benefits can be
achieved by maintaining and promoting the highest level of efficiency and productivity. The
SUGAREAP, therefore, agrees to cooperate with the efforts of the MANAGEMENT to secure a
full day's work on the part of the covered employees. The SUGAREAP further agrees to
cooperate with and assists the MANAGEMENT in its effort to minimize waste and inefficiency,
promote safety and cleanliness in the workplace and goodwill between the MANAGEMENT and
its employees.

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 Section 7. The MANAGEMENT shall allow the SUGAREAP to have access to SRA
financial reports in the pursuit of transparency for better understanding and to guard against any
abuse of public resources.

Section 8. The MANAGEMENT shall provide comfortable sleeping quarters, free of

charge, in Quezon City and Bacolod offices for visiting officials and employees while on out-of-
town official travels to conduct business within the jurisdiction of these offices.
MANAGEMENT shall establish policy guidelines on the use of these facilities.

Section 9. The MANAGEMENT should institutionalize a periodic consultation between

the union and the HRD Section regarding the schematic implementation of work assignment to
its employees.

ARTICLE VIII

EDUCATIONAL AND PROFESSIONAL DEVELOPMENT

Section 1. Recognition of Need for Professional Development - The parties hereby agree
on the need to promote professional growth and development in all areas of work, be it classifies
as technical or non-technical line of work, subject to the provision of Section 1, Item a.5 of
Administrative Order No. 103 dated 31 August 2006.

Professional growth and development activities shall not be limited to training courses,
such as seminars and workshops but shall include study grants and similar development
programs that may be deemed appropriate. In the course of this Agreement, the
MANAGEMENT shall implement the established and approved Career and Personnel
Development Plan for each employee, pursuant to Section 2, Rule VIII of Executive Order No.
292 and shall formulate a training and scholarship program pursuant to Section 7, Rule VIII of
Executive Order No. 292 and embodied in SRA Memorandum Circular No. 1 Series of 1999,
otherwise known as the Career and Personnel Development Plan (CDCP) of SRA dated August
9. 1999. Said activities may be supported by the MANAGEMENT through a Training Fund
provided for in its annual budget, subject to approval by the Sugar Board.

Section 2. Review, Dissertation and Thesis Writing Leave - The Agency shall establish a
continuing program for career and personnel development and create an environment conducive
to the development of personal skills, talents and values for better public service. In recognition
of the need to encourage individual initiative and higher academic learning, employees shall be
allowed to avail of the maximum six (6) month-leave with pay while in the process of
Dissertation or Thesis Writing or while taking the BAR or Board review, subject to the
concerned employee's signing of a Memorandum of Agreement specifying his/her obligations,
and subject to the provisions of CSC Memorandum Circular MC No. 21, Series of 2006 dated
September 14, 2004.

ARTICLE IX

REPRESENTATION OF SUGAREAP IN THE

MANAGEMENT'S MAJOR ACTIVITIES

Section 1. Representation of the SUGAREAP - The SUGAREAP shall be represented in

the Personnel Selection Board (PSB), Personnel Development Committee (PDC), Management
Committee (Man-Com), regular MANGEMENT committees of major importance like
Performance Evaluation and Review Committee (PERC), Program on Awards and Incentive for
Service and Excellence (PRAISE), Employees Welfare Fund Committee, Mutual Assistance
Program Committee (MAP) and the like and as observer in the Bidding Committee.

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SUGAREAP shall be responsible for securing Board Resolutions nominating/authorizing their
official representative.

ARTICLE X

HIRING, LAY-OFF AND TRANSFER OF EMPLOYEES

Section 1. Hiring and Termination of Employees - Hiring and termination of employees

whether permanent, temporary, contractual or casual shall be in accordance with existing laws,
rules and regulations, provided that, SUGAREAP shall be represented in the selection process of
new employees for the first and second level positions, and shall be properly notified before the
termination or separation from the service of a permanent employee.

Section 2. Service of Notice of Expiration of Appointment - The MANAGEMENT shall

furnish the SUGAREAP a copy of notice of Expiration of Appointment of temporary, casual and
contractual employees within thirty (30) days prior to expiration.

Section 3. Transfer of Assignment - The MANAGEMENT shall inform the SUGAREAP

thru the Human Resource Division of any geographical movement/transfer of assignment of an
employee.

Section 4. Priority of Employment of Employees' Next of Kin - In case an employee is

incapacitated due to accident or fortuitous event and is therefore separated from the service, the
MANAGEMENT shall give consideration for the employment of his/her next of kin who may be
qualified, subject to Constitutional Statutory and CSC provisions on merit and fitness,
specifically CSC Memorandum Circular No. 3, series of 2001 (enjoining the agency head in the
exercise of one's sound discretion to select from among the top five (5) ranking candidates
deemed most qualified for appointment to the vacant position). (The next of kin shall refer only
to a legitimate, adopted, legitimated or recognized illegitimate child of the employee, or his/her
spouse).

ARTICLE XI

PROMOTION

Section 1. Promotion Plan - The MANAGEMENT, with the participation of

SUGAREAP, shall implement the MANAGEMENT's merit Promotion Plan approved by the
Civil Service Commission subject to review at least once every two (2) years by the
MANAGEMENT and SUGAREAP. Any amendment shall be submitted for approval to the
CSC .

Section 2. Promotion and Selection - When making promotions, Civil Service laws, rules
and regulations and the MANAGEMENT's merit promotion Plan shall be applied and strictly
adhered to. No changes in the guidelines and/or criteria shall be adopted without the
participation of the SUGAREAP.

Section 3. Representation in the Promotion Selection Board - The SUGAREAP shall be

represented in the Selection Board by the representatives from the 1' and 2 nd level positions, who
shall be designated and empowered in accordance with the provisions of Civil Service
Commission Memorandum Circular No. 3 Series of 2001 and the SRA Merit Selection Plan
approved by the CSC on November 20,2001.

Section 4. Issues on Promotion - Whenever in the belief of any affected member of the
SUGAREAP, that there are grounds for protest in a promotion process, the same shall be
submitted to a grievance procedure.

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 Section 5. Pilling-up of Vacancies - The MANAGEMENT shall give priority to
employees from within, subject to usual qualification standards, in the filling-up of vacancies
unless the position is highly technical or strictly confidential in nature and there is no qualified
employee from within the Agency.

ARTICLE XII

REORGANIZATION

Section I. Reorganization - In case of reorganization, all officials and employees who

may be retrenched by reason of such reorganization shall be given separation pay in accordance
with existing governmental rules and regulations on the matter.

Additionally, retrenched employees shall be given priority in the filling up of positions

which subsequently become available in the organization and for which they are qualified.

ARTICLE XIII

SAFETY AND HEALTH

Section 1. Safety and Healthy Working Condition - The MANAGEMENT shall conform
and comply with applicable regulations requiring safety, health and sanitary working conditions.
The MANAGEMENT shall continue to provide:

a. Adequate janitorial services;

Personnel protective equipment and tools provided for by appropriate Agency

guidelines;

c. Adequate security and protection for employees, clientele, and personal properties
while they are within the MANAGEMENT premises, provided that everyone
concerned exercise due diligence with regards to securing their personal belonging;

Clean and safe drinking water, and,

e. The services of a Registered Nurse and Dentist within the premises, the said services
to be provided by MANAGEMENT by employing a registered nurse and contracting
out of a registered Dentist from government health institution for the regular visit of a
registered nurse and dentist at SRA.

f Provide first-aid facilities for regional and field offices and to contract out
government health institutions for regular check-up for the regional and field officers.

Section 2. Labor-Management Health and Safety Committee - A Labor Management

Health and Safety Committee shall be convened within twenty (20) working days from the time
of effectivity of this Agreement. The said committee shall be composed of three (3)
representatives each from the MANAGEMENT and SUGAREAP. The committees shall
formulate and recommend to the MANAGEMENT such healthy and safety related policies for
approval, and once approved, monitor its implementation.

Section 3. Improvement of Working Conditions - The MANAGAMENT shall cause the

periodic fumigation and sanitation of all workplaces with special attention to public areas, and
periodic vacuuming of paper files/records.

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 Section 4. Day Care, Breast Feeding Room and Family Planning. — The
MANAGEMENT shall provide day care center for children of employees. It shall also provide
breastfeeding room for nursing mothers and, coordinate the conduct of family
planning/responsible parenthood seminar to its employees.

Section 5. Hazard Allowance - The MANAGEMENT may provide hazard pay or

allowance to employees who are exposed to occupational risk and hazardous working conditions,
subject to availability of funds, DBM Budget Circular No. 2005-4 and other rules and regulation
that may be issued subsequently by DBM and applicable laws and regulations, if any.

ARTICLE XIV

WORKING HOURS, SALARIES AND OTHER RELATED MATTERS

Section 1. Work Schedules - Employees may continue to be allowed by the

MANAGEMENT flexible time schedule as provided under Civil Service Commission rules and
regulations.

Section 2. Tardiness, Absences and Grace Period - Employees who exceed the allowable
number of tardiness and absences shall be meted appropriate sanctions as provided under Civil
Service Commission rules and regulations, subject to the application of humane considerations
that MANAGEMENT may deem pertinent or applicable on a case-to case basis. It shall also
allow its employees fifteen (15) minutes grace period before an employee is considered as tardy.

Section 3. Performance and Attendance Incentive - The MANAGEMENT, pursuant to

CSC MC No. 1, Series of 2001 establishing the Program on Awards and Incentives for Service
Excellence (PRAISE) shall establish its own employee suggestion and incentive awards system
and the PRAISE Committee shall be responsible for the development, administration, monitoring
and evaluation of the awards and incentives system of the agency. For this purpose,
MANAGEMENT shall provide a performance and attendance incentive of P10,000.00 per year
to employees who have not incurred absences or tardiness or who have made outstanding
performance within the year.

ARTICLE XV

EXISTING ECONOMIC BENEFITS AND PRIVILEGES

Section 1. The MANAGEMENT agrees to implement applicable Executive Orders,

Department Orders and Memorandum Orders issued by the Office of the President, Department
of Agriculture, Civil Service Commission, Department of Budget and Management, and other
government agencies on such matters as allowances, hazard pay and other benefits, subject to
availability of funds, legal authority or bases. The MANAGEMENT, further agrees to provide
under this term, one (1) sack of sugar, on a yearly basis, to all qualified employees under existing
terms and conditions to be set by the parties.

ARTICLE XVI

OTHER BENEFITS

Section 1. Assistance to Retirees - The MANAGEMENT shall ensure immediate

release of all benefits due to retirees subject to existing rules and regulations, and assist in the
facilitation of the release of their retirement pay and other benefits from the GSIS and/or from
other government agencies.

Section 2. Employee's Cooperative - The MANAGEMENT shall allow/encourage

the establishment of an employee's cooperative. Primarily, the cooperative shall be aimed at

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providing economic and other opportunities that shall protect the employees from further
exploitation by loan sharks and other credit facilities detrimental to them.

Section 3. Anniversary Bonus - The MANAGEMENT may provide employees with

additional incentive during the Agency's anniversary (milestone years), subject to pertinent Civil
Service Commission (CSC) guidelines and availability of funds as maybe determined by the
Sugar Board. (A milestone year refers to the 15th anniversary and every fifth year thereafter).

Section 4. Funeral Assistance - The MANAGEMENT encourages employee

contributions to a Mutual Assistance Program (MAP) to provide funeral assistance for SRA
employees to cover the burial expenses of direct relatives (spouse, child, parents, or legal
dependent).

Section 5. Extra Day-Off and Other Leave Benefits - The MANAGEMENT shall
provide extra day-off for every four (4) day official travel. Aside from the usual leave enjoyed by
its employees, the MANAGEMENT shall provide graduation leave, enrolment leave and
wedding/anniversary leave to its qualified employee which must be non-cumulative.

ARTICLE XVII

EMPLOYEE-MANAGEMENT COMMITTEE

Section 1. Employee-Management Committee - To foster a better working

relationship between the MANAGEMENT and the SUGAREAP, the Employee-Management
Committee shall be established as an avenue for promoting and enhancing continuous dialogue
and consultation on matters that affect both parties.

Section 2. Interpretation and Enforcement Agreement - In case of dispute arising

from the interpretation and enforcement of this Agreement, the same shall be resolved in
accordance with Executive order No. 180, resolutions promulgated by the Public Labor Sector-
Labor Management Council (PLSLM) and other pertinent law, rules and regulations regarding
the Collective Negotiation Agreement (CNA).

ARTICLE XVIII

GRIEVANCE MACHINERY

The implementing rules of Executive Order No. 180 and the Civil Service Commission
(CSC) Memorandum Circular No. 45, Series of 1989 shall govern the grievance machinery in the
SRA. In pursuance thereof, the MANAGEMENT and the SUGAREAP shall develop and adopt
a formal grievance procedure, within 60 days from signing of this Agreement and submit the
same for approval of the Sugar Board.

ARTICLE XIX

LEGAL AFFAIRS

Section 1. Employee's Legal Assistance - The MANAGEMENT shall provide legal

assistance/advice to an employee in any of the following instances:

a. If an employee is sued by a third party in a civil case as a direct result of the

employee's authorized performance of his/her official duty,

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 b. If an employee is subpoenaed/summoned to testify as witness for the
MANAGEMENT before any court, tribunal or body exercising quasi-judicial
functions, and

c. Subject to professional constraints, the lawyer of the MANAGEMENT may be

consulted by the employee for legal advice and counselling.

Section 2. Administrative Investigation - The MANAGEMENT shall ensure that in

all administrative investigations, due process shall be observed.

ARTICLE XX

CNA TECHNICAL WORKING GROUP

The MANAGEMENT and the SUGAREAP shall create a joint committee properly
known as the CNA Technical Working Group (TWG) whose task is to provide the Implementing
Rules and Regulations (IRR) for provisions, agreements that require guidelines in its
implementation. The Implementing Rules and Regulations (IRR) shall be subject to approval of
the Sugar Board.

ARTICLE XXI

CNA INCENTIVE

Section 1. Pursuant to and in accordance with provisions of the Public Sector Labor-
Management Council (PSLMC) Resolution No. 4, Series of 2002 of the Civil Service
Commission (CSC) and Administrative Order No. 135, Series of 2005 dated 27 December 2005
of the Office of the President, Department of Budget and Management Circular No. 2006-1 dated
February 1,2006 "Grant on Collective Negotiation Agreement (CNA) Incentive", and most
importantly is the Department of Budget and Management (DBM) Circular No. 2012-4, dated 17
December 2012, "Guidelines on the Grant of Collective Negotiation Agreement (CNA) Incentive
for FY 2012, the Sugar Regulatory Administration (SRA) commits itself to set aside an
appropriate amount to be charged against the savings of the Agency every year generated from
the cost-cutting measures as identified and enumerated in Section 3 hereof, for the grant of the
CNA Incentive to eligible employees, to be paid in the manner prescribed under the aforesaid
resolution, Administrative Order and Budget Circular.

Section 2. Non Member Dues. The MANAGEMENT agrees to check-off or payroll-

deduct from the salaries of Management employees who are non-members of the Association but
are benefited by this Agreement even without their authorization. The amount of such agency fee
shall be equivalent to the membership fee, monthly dues, and other fees paid by the members but
in no case shall be more than 10% of the monetary values of each and every CNA received by
non-member every yearly.

Section 3. To generate savings for the above-mentioned purpose, MANAGEMENT

and SUGAREAP agree to continue the practice of the staff performing functions and adopt the
following cost measures, to wit;

a. Compliance in the pursuance of Administrative Order No. I03, entitled "Directing the
Continued Adoption of Austerity Measures in the Government", issued by the Office
of the President dated August 31,2004.

b. Compliance with SRA Office Circular No. 1 Series of 2005 dated July 19, 2005 on
guidelines in the use and utilization of SRA Staff/Guest Houses and other pertinent
circulars that may be issued from time to time.

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 c. In addition to the economy measures under SRA' s Administrative Order No. 1, Series
of 2004, the following austerity measures shall also be implemented:

• Air conditioning unit must be switched on 8:00 A.M. and switched off at 4:00
P.M. During lunch breaks it should be on "fan" mode.

• Computers shall be shut off at the end of each working day.

• Cooking shall be strictly prohibited.

• Compact florescent lights shall replace all lighting fixtures

• Personal television set shall be removed from all offices

• Use of public utility vehicles/buses is encouraged for travels outside Metro

Manila.

• The use of SRA vehicle for the Records Section shall be allowed twice a
week. Only in cases of emergency will travel more than twice a week be
allowed. Liaison officers who are given allowance are encouraged to use
public utility/vehicle.

• Individual electric and water meters shall be installed in all staff houses at
r)
LAREC and LGAREC.

• Continuing effort to reduce the cost of pakiao labor and consultants.

• For extension workers, travel to SRA main office (Q.C. and Bacolod) shall be
allowed only for urgent and necessary business.

• Compensatory scheme for payment of overtime.

• Judicious management of travelling and gasoline expenses by officials and

employees.

• Reduction of telephone lines and limitation of long distance calls.

.-------
• Minor maintenance of cars such as tune-ups, vulcanizing, etc, shall be charged
to the account of the car assignees.

• All members of the Association shall strictly monitor the implementation of

---Ts:'
above economy measures and shall report to the Association president or
his/her duly designated representative of any violation thereof The same
I)
shall be reported by the SUGAREAP officers attending any Executive
meeting, if there is any, for appropriate action.
7

ARTICLE XXII

PROVIDENT FUND

Section 1. Provident Fund - MANAGEMENT shall provide a provident Fund

consistent with Executive Order No. 641 "Authorizing the Establishment and Administration of

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 Provident Fund in the Government" signed by President Gloria M. Arroyo on July 2007, subject
to the provisions of applicable Implementing Rules and regulations (IRR)

ARTICLE XXHI

ENTIRETY AND MODIFICATION CLAUSE

Section 1. Entirety - The terms and conditions herein contained shall constitute the
entire agreement between the parties and supersede all previous communications, representations
or agreements, either verbal or written, between the parties in so far as they are contrary or
repugnant to such terms and conditions.

Section 2. Amendments - Both parties agree that negotiations shall not be reopened
on any of the terms and provisions herein contained during the life of the Agreement except by
mutual consent embodied in a separate/amended Collective Negotiation Agreement (CNA) at
any time during the lifetime of the CAN and shall become part and parcel of this Agreement.

Section 3. Any designated representative of the MANAGEMENT and SUGAREAP

(:37, should be clothed with and given full authority to represent their respective principal.

ARTICLE XXIV

MISCELLANEOUS

Section 1. Separability Clause - In the event any provision of this Agreement is

declared invalid by competent court or authority, the remaining provisions to which such
declaration does not pertain shall continue to be valid and in full force and effect.

Section 2. General Condition - Except as may be allowed or exempted by law, all

provisions contained in this Agreement shall be subject to the rules and regulations of the Civil
Service Commission and the Department of Budget and Management, Commission on Audit,
and other applicable laws and governmental rules and regulations.

ARTICLE XXV

EFFECTIVITY AND DURATION

Section 1. This Agreement shall take effect upon its signing and ratification by the
majority of the members of SUGAREAP and shall be enforce for a period of three (3) years
counted from such date. In the event no renewal agreement is entered into upon expiration
hereof, this Agreement shall remain in full force and effect for a reasonable period so as to give
opportunity to the parties to conclude negotiations for a new or renewal agreement.

Section 2. By mutual agreement of the parties, this Agreement may be reviewed and
revised if and when necessary for their mutual benefit.

IN WITNESS WHEREOF, the parties hereto, by their authorized representative, have

executed this Agreement on ibis day.of October 2017 at Quezon City, Metro Manila.
d 2 5 Ali

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By Authority of the Sugar Board: By Authority of the SUGAREAP Board:

HERMF.KEGILDO R. FICA MARCO jSORIANO

Administrator President

SIGNED IN THE PRESENCE OF:

CSC Representative

WITNESSES

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 ACKNOWLEDGEMENT

Republic of the Philippines)

Quezon City ) S.S.

BEFORE ME, a notary public for and in Quezon City, personally appeared
Herminigildo R. Serafica with Sugar Regulatory Administration (SRA) Identification Card No.
2") -7, , in his capacity as Administrator and Marco D. Soriano with Sugar Regulatory
Administration (SRA) Identification Card No. 6114-8 issued by SRA, in his capacity as President
of SUGAREAP, both known to me and to me known to be the same person who executed the
foregoing instrument and acknowledged to me that the same is their free and voluntary act and
deed and of the of the government herein represented.

WITNESS MY HAND AND SEAL on the date and place above written.

Doc. No. on ; NOTARY PUBLIC

Page No. 11 ;
Book No. VI ;
Series of 2017.

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