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COLLECTIVE BARGAINING AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:


This Agreement, made and entered into by and between:
The FIVE-SISTER, INC., a corporation duly organized under
Philippine law with principal office at Laoag City, represented herein by
its General Manager, Eloisa Rodriguez and Assistant General Manager
Benjamin Torre, herein referred to as the COMPANY.
- and The FIVE-SISTER EMPLOYEES UNION (FEU), a legitimate
labor organization duly registered with the Department of Labor and
Employment, with office address at JULIUS BUILDING, Lagasca Street,
Laoag City, herein represented by FEU President Mark Joseph Tarantino
and Vice-President Reiner Lagda, herein referred to as the UNION.
WITNESSETH: That
WHEREAS, pursuant to the Collective Bargaining Agreement
entered into in 2015 covering the period 2015-2019 which mandated the
negotiation of the provisions of the Agreement to be enforced for five (5)
years.
WHEREAS, the COMPANY and the UNION desire to sign and
enter into a Collective Bargaining Agreement covering five (5) years
under mutually acceptable terms and conditions as a means of further
fostering good labor management relations, enforcing discipline, and
maximizing efficiency and honesty in the performance of the employees
duties, to insure optimum productivity, peaceful adjustment and
settlement of grievance, disputes and differences which may arise
between the COMPANY and the UNION, to prevent strikes, slowdowns,
lockouts, and other disturbances, interferences with or interruption to,

production, and to promote sound and stable industrial peace and advance
the general welfare, health, safety and the best interest of the employees
and the of the COMPANY;
NOW, THEREFORE, in consideration of the foregoing premises
and the mutual covenants, undertaking and stipulations hereinafter set
forth, the UNION and the COMPANY have agreed on the following:
ARTICLE I
RECOGNITION
SECTION 1.

Recognition - The COMPANY recognizes the

Union as the sole and exclusive collective bargaining representative of all


its regular rank and file employees in the COMPANY for purposes of
collective bargaining with respect to their rates of pay and other terms
and conditions of employment.
SECTION 2.

Coverage This Agreement shall apply to and

cover all regular rank-and-file employees of the COMPANY FIVESISTERS, INC. and in any establishment that may be organized by the
COMPANY in the future with the same nature of business and where the
COMPANY has controlling interest, except those employees explicitly
excluded from the bargaining unit as enumerated in the succeeding
section. Consequently, all newly created regular rank-and-file positions of
the COMPANY in the future shall also be covered by this Agreement.
SECTION 3. Exclusions - The following employment categories
are expressly excluded from the bargaining unit and from the scope of
this Agreement: Executives, managers, supervisors and those employees
exercising any of the attributes of a managerial employee; Finance, HR
and IT Department employees, Department secretaries, and personnel
assigned to the Office of the General Manager; probationary, temporary
and casual employees, security guards, and other categories of employees
declared by law to be ineligible for union membership.

SECTION 4.

Additional Exclusions

- Employees within

the bargaining unit heretofore defined, who are promoted or transferred


to an excluded employment category as hereinbefore enumerated, shall
automatically be considered as resigned and/or disqualified from
membership in the UNION and be automatically removed from the
bargaining unit.
SECTION 5.

Definitions -

a) Managerial employee is one who is vested

with powers or

prerogatives to lay down or execute management policies and/or to hire,


transfer, suspend, lay-off, recall, discharge, assign or discipline
employees.
b) Supervisory employees are those who, in the interest of the
employer, effectively recommend such managerial actions if the exercise
of such authority is not merely routinary or clerical in nature but with the
use of independent judgment.
c) Technical employees shall include all monthly paid personnel
occupying the positions of technicians, preventive maintenance
technicians and process technicians.
d) Office employees shall cover all monthly-paid employees
exercising general administrative and clerical functions and utility
personnel but excluding Department secretaries and those with the HR,
Finance and IT Department, and the Office of the General Manager.
e) A probationary employee is one hired for a trial or probationary
period not to exceed six (6) months to fill or occupy eventually a regular
position in the COMPANY organization. The probationary period shall
be reckoned from the first day of employment as a casual or temporary
employee
f) A casual employee is one hired for a definite, fixed or
determinable period of time strictly to perform work on a specific project

not directly connected with the regular operations or business of the


COMPANY.
g) A temporary employee is one hired for occasional or seasonal
work, or as a temporary replacement for regular employee on leave.
h) A regular employee is one who is extended regular appointment
or who after having satisfactorily completed the probationary period and
full requirements for regular employment is retained by the COMPANY.
SECTION 6.

Non-representation of Excluded Employees -

It is agreed and understood that the UNION shall not represent, bargain
for, or speak in behalf of any employee or group of employees in the
excluded employment categories in respect to lay off, discharge, transfer,
disciplinary action, grievance and terms and conditions of employment.

ARTICLE II
UNION SECURITY
SECTION 1.

Maintenance of Membership - All employees

who are within the bargaining unit as herein defined and are members of
the UNION upon the signing of this Agreement shall remain members of
the UNION in good standing for the duration of this Agreement as a
condition precedent to continued employment with the COMPANY.
It is understood that employees within the bargaining unit who are
not members of the UNION as of the date of the signing of this
Agreement shall be free to join or not to join the UNION without
pressure or compulsion from the COMPANY or the UNION.
Employees who may hereafter be accorded regular status and fall
within the scope of the bargaining unit herein defined, shall automatically
become members of the UNION, and shall maintain his membership in
good standing during the term of this Agreement, as a condition of their
continued employment with the COMPANY.

SECTION 2.

Dismissals - Any such employee, mentioned

under the last paragraph of Section (1) hereof, who refuses to join the
UNION after attaining regular status and/or any UNION member who
fails to maintain his membership in the UNION for any of the following
grounds:
(a) commission of a crime against the Federation, UNION officers
and members;
(b) non-payment of right amount of UNION dues and other special
assessments to the UNION;
(c) voluntary resignation from the UNION during the effectivity of
the Agreement except as allowed by law; and
(d) violation of the UNIONs Constitution and By-Laws
shall, upon written notice by the UNION of such refusal to join or to
maintain membership in the UNION and upon written recommendation
to the COMPANY by the UNION, be dismissed from employment by the
COMPANY provided, however, that the UNION shall hold the
COMPANY free and blameless from any and all liabilities that may arise
should the dismissed employee question, in any manner, his dismissal.
SECTION 3.

Discharge of Critical Employees

The

COMPANY may ask the UNION a reasonable period of time from the
date of recommendation by the UNION within which the employee shall
be terminated from employment, if such employee is performing a
function that is critical to the business of the COMPANY, unless
replacement therefor may be or is actually obtained by the COMPANY.
SECTION 4.

Action on Demand for Dismissal - Where the

COMPANY asks for a longer period within which to dismiss the


employee concerned in view of the critical nature of his functions, final
action on the recommendation on the termination by the COMPANY

shall be taken only after a suitable replacement has been obtained within
a reasonable period of time pursuant to Section 3.
SECTION 5.

Type

of

Dismissal

Dismissal

and/or

termination of employment of an employee under Sections 2 and 3 of this


Article shall be treated and considered as dismissal for a just cause.
SECTION 6. In case of retrenchment or reduction of personnel
due to installation of labor saving device, the same shall be applied
equitably to all affected personnel using the guidelines set by law and
their implementing rules. In case of a tie, all things being equal, Elected
UNION Officers, shall be given preference.

ARTICLE III
CHECK-OFF
SECTION 1.

Written Authorization

- The COMPANY

agrees to check-off or deduct once a month from the wages/salaries of


members of the UNION, earned in the second period of each calendar
month, UNION dues in such definite amounts as provided for in the
UNIONs Constitution and By-laws or general membership resolution
and to remit 50% of such deductions for UNION dues to the Federation
of Free Workers and the other 50% to the local chapter; provided,
however, that the UNION members submit individual written requests
and authorizations thereof. The COMPANY also agrees to check-off or
deduct from the wages/salaries of members of the UNION special union
assessments such as bereavement contributions and fines; provided,
however, that the Board resolution thereof, approved by the general
membership, duly certified by the Secretary and President of the UNION,
together with the Special check-off authorization of individual UNION
members relative to such assessments, is submitted to and received by the
COMPANY not less than ten (10) days prior to the date during which
assessment or deduction is requested to be made.

In addition, the

COMPANY agrees to check-off for the UNION from the wages/salaries


of the UNION members contributions/collections for the employees

Cooperative, provided, however, that the UNION submits to the


COMPANY at least ten (10) days prior to the deductions or check-off,
individual written authorization thereof from the UNION members. The
COMPANY and the UNION shall formulate a control mechanism
regarding such contributions/collections for the Cooperative to avoid any
undue financial burden to the employees.
SECTION 2. Agency Fee

All rank-and-file employees

covered by the bargaining unit but who are not members of the UNION
shall be collected an amount equivalent to the union dues representing
agency fee to be deducted from their monthly salary.
SECTION 3.

Duration of Written Authorization

- The

check-off request and authorization for monthly UNION dues shall


remain in effect during the term of this Agreement. The special check-off
request and authorization for special UNION assessment and the
Cooperative shall be good only for the specified UNION assessment or
deduction.
SECTION 4.

Transmittal of Check-Off Amounts

The

COMPANY agrees to remit to the Treasurer of the UNION by check, the


amount deducted in accordance with the check-off authorization within
five (5) working days after such check-off or deduction is made.

The

Treasurer of the UNION and/or the duly authorized UNION


representative shall acknowledge and issue the corresponding UNION
official receipt therefor and, thereafter, the COMPANY shall no longer be
responsible for such amount(s).
SECTION 5.

Assumption of Liability

The UNION, its

officers, and members hereby agree to indemnify, answer for, and hold
the COMPANY free and blameless from, any and all claims which may
be brought or instituted against the COMPANY by an employee for
amount deducted from his salaries or wages as herein provided.
SECTION 6.
Indebtedness

Priority

of

Certain

Obligations

or

- Notwithstanding the provisions of this Article, the

COMPANY shall have the right to give priority to the deductions from
the wages or salaries of the members of the UNION all obligations,
indebtedness and deductions required to be made by law, such as SSS,
PhilHealth, and Pag-ibig Fund contributions, withholding tax deductions
and the like. After which deductions for the UNION and the Cooperative
shall be effected.
SECTION 7. Employee Records - The COMPANY agrees to
furnish the UNION a copy of each regular employment extended to a
rank-and-file employee who is a qualified member of the bargaining unit.
The COMPANY furthermore agrees to accommodate such requests of the
UNION for specific information or data regarding any of its members
which are available from their personnel files provided they are directly
related to claims and grievance of the employee concerned.

ARTICLE IV
MANAGEMENT PREROGATIVES
SECTION 1.

The

UNION

hereby

recognizes

the

COMPANYs rights to the exclusive control of management over all


functions and facilities and to the direction of the entire working force.
The COMPANY shall be the sole judge of the competence of an
employee in the performance of his assigned work. The exclusive rights
and prerogatives of the COMPANY shall include, but shall not be limited,
to the right to schedule the hours of work, shifts and work schedules,
reporting days, and quota; to plan schedule, direct, curtail, increase or
control operations and schedules of periods during which the COMPANY
will be shut down; to introduce and install new or improved systems,
procedures, methods of facilities; to designate the work and the employee
to perform it; to select and hire employees to train other employees and
improve their ability; to make and enforce rules and regulations
governing conduct and maintenance of order, safety and effective

operations within the COMPANY; to promote, demote, dismiss,


discharge, lay-off, discipline, suspend and transfer employees from one
job to another, to institute a job classification and/or merit rating system
to create new or additional classifications or to eliminate classification of
jobs and employees and, in general, to exercise the inherent customary
prerogatives and functions of management subject to the provisions of the
law and of this Agreement.

ARTICLE V
EMPLOYMENT STATUS
SECTION 1.

Employment Priority - In filling up vacant

or newly created positions, preferences shall be given to employees who,


in the judgment of the COMPANY, possess the necessary qualifications
for the position. The COMPANY shall first determine who would be best
suited or qualified for the position through the use of the established
criteria of ability, efficiency, qualifications and experience in handling the
job. When, in the judgment of the COMPANY, all such factors or criteria
are equal, seniority shall be the deciding factor.
SECTION 2. The hiring of relatives shall be governed by the
following:
a) relationship (by blood or affinity) between and among
employees will not be allowed within the same section/work area of
Production Department, nor within the same department or support
group;
b) under no circumstances will superior-subordinate relation
between relatives of any degree be allowed. Also, relatives by blood or
affinity of whatever degree shall not occupy counterchecking positions.
SECTION 3. In case a regular employee dies or retires and the
COMPANY decides to fill-up the position vacated as a consequence of
his death or retirement, any member of his immediate family who is

qualified for the position shall have priority in the hiring of his
replacement.
For the purpose of this provision, immediate family shall mean
the legitimate father, mother, brother or sister of an unmarried employee,
or the legitimate spouse, son or daughter of a married employee.
SECTION 4. Seniority Seniority is determined on the basis of
the employees length of continuous service with the COMPANY,
counted from the first day of his employment, provided that the seniority
of those temporarily laid off in 1985 shall be considered as not having
been interrupted by that lay off.
SECTION 5. Promotion The trial period for an employee who
is promoted to a higher-rated position shall be at least three (3) months.
During the trial period, the employee shall receive the same pay as he
was receiving immediately prior to his promotion plus a position
premium to be determined by the COMPANY. An employee who fails to
satisfactorily pass the trial period for promotion shall be reverted to his
former position.
An employee who passes the trial period and is thus promoted shall
be granted a promotional increase as follows:
For daily-paid employees

- 10% increase on the basic daily

wage.
For monthly-paid employees - 10% increase on the basic monthly
salary.
SECTION 6. Reduction of Personnel

- The COMPANY shall

use its best effort to avoid a reduction or lay off of personnel by adopting
alternative

measures

allowed

by

law and

feasible

under

the

circumstances. In case termination or lay off cannot be avoided because


of retrenchment to prevent losses, redundancy, installation of labor-saving
devices and other similar or analogous causes, the selection of employees

to be terminated or 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 behaviour of the employee as shown by his
employment record; and
c. All things being equal, the Last-In, First-Out Rule shall be
applied.
In any event, any employee who is terminated for authorized
causes mentioned above shall be granted separation pay consistent with
law or the rate under the Companys retirement plan, whichever is higher
SECTION 7. Transfer of Personnel - Except for reasons of
operational requirements or business exigencies, the COMPANY shall
not transfer any UNION officer or shop steward if his transfer will
adversely affect the grievance machinery or the effective performance of
their functions as UNION officers.
SECTION 8.

Change in Status, and or Ownership - The

COMPANY agrees that should there be a change in status and/or


ownership by the latter, by way of sale, merger, consolidation,
receivership, spin-off, attachment, administration, or other forms of
transfer, the COMPANY shall exert best effort to have the new
administration respect the existing Collective Bargaining Agreement
between the COMPANY and the UNION.

ARTICLE VI
GOVERNMENT POLICIES

SECTION 1. Through the LMC, the parties, in recognition of


individual and team productivity potentials of its entire employees,
participate in decision-making processes that affect the general welfare of
the employees to enhance the quality of life and COMPANY productivity.
Therefore the parties agree to develop, promote and implement workable:
a) Labor Management Cooperation programs for the benefit of
the employees and the Company
b) Family Planning in accordance with law
c) Health, Safety and other Government Policies The
COMPANY and the UNION agree to support existing
government policies on health and safety standards and related
government programs including workers education, job
enrichment, reduction of monotony of work, sports and
recreational activities with the end in view of enhancing
productivity, efficiency and morale as well as the physical health
and well-being of employees.
It is hereby agreed that an employees committee shall be created
which shall be in charge of proposing sports and recreational programs
and a budget therefore subject to the approval of the General Manager.
d) Employee Committee the COMPANY shall maintain as long
as deemed necessary such labor-management committees as are
presently

existing,

i.e.,

Canteen

Committee,

Recreation

Committee and Health and Safety Committee, and shall form


such other Committees as may be required by law or as may be
agreed upon by the parties.

ARTICLE VII
RESPONSIBILITIES OF THE PARTIES AND INDUSTRIAL
PEACE

SECTION 1. Maintenance of Industrial Peace and Harmony


Each of the parties hereto acknowledge the rights and responsibilities of
the other party and agrees to discharge its responsibilities under this
Agreement. Except in cases allowed by law, the UNION, its officers,
agents and members warrant that for the duration of this Agreement they
shall not initiate, engage or tolerate the commission of strikes or any form
of work stoppages or concerted activity disruptive of the smooth and
efficient operations of the COMPANY.

In turn, the COMPANY

undertakes that there shall be no lockouts so long as this Agreement is in


effect. The parties further reiterate their commitment to preserve and
maintain industrial peace and harmony in the COMPANY for the
duration of this Agreement, and shall at all times discuss and resolve
labor-management problems or disputes amicably, in accordance with the
terms of this Agreement and the law.
SECTION 2. Warranties - The parties acknowledge that during
the negotiation which resulted in the execution of this Agreement, each of
them has had the right and unlimited opportunity to make demands and
proposals with respect to any and all subjects and matter proper for
collective bargaining and not prohibited by law; and the parties further
acknowledge that the understanding and agreement arrived at by them
after the exercise of that right and unlimited opportunity are fully set
forth in this Agreement.
The COMPANY and the UNION, during the life of this
Agreement, each voluntarily and unqualifiedly waives the right, and each
agrees that the other shall not be obligated to bargain collectively with
respect to any bargaining matter and/or matter referred to or covered by
this Agreement.

ARTICLE VIII
GRIEVANCE MACHINERY

SECTION 1. Purpose - The intention and purpose of the parties


is to establish a means for the prompt disposition and amicable settlement
of all grievances.
SECTION 2. Definition

- A grievance is any difference of

opinion or misunderstanding between the COMPANY and member of the


UNION with respect to the meaning, interpretation, application of, or
compliance with, any of the provisions and terms of this Agreement, or
with respect to terms and conditions of employment.
SECTION 3. Procedure - Should a grievance arise, an earnest
effort shall be made to settle the same in accordance with the following
procedure:
STEP 1. (a) Within 3 days from the time the event considered as a
grievance arose, the employee, either in person or through the Shop
Steward shall submit his grievance in writing to his Supervisor, who,
together with the Shop Steward, shall endeavour 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 endeavour to resolve the

grievance within five (5) days from the date the grievance was referred to
him and/or discuss the grievance with the end in view of settling the same
with the employee concerned and/or the Chairman of the UNION
Grievance Committee. If the grievance is not resolved within the said
period or the same is decided not to the satisfaction of the employee or
the UNION, the grievance may be referred to the General Manager
within five (5) days from the lapse of the 5-day period for the HR

Manager to resolve the same, or from the date the employee or the
UNION received notice of the HR Managers decision.
STEP 3.

The General Manager shall endeavour to resolve the

grievance within seven (7) days from referral to him, and may call upon
the President of the UNION for the purpose. Should he fail to resolve
the grievance within the period, or should the employee be not satisfied
with his decision, the grievance may be referred to arbitration in
accordance with Section 4 hereof.
SECTION 4. Arbitration a) The arbitration of unsettled grievances shall be made by an
Arbitrator who shall be chosen as follows:
The COMPANY and the UNION shall each submit five (5) names
of qualified/competent arbitrators. A representative each of the UNION
and the COMPANY shall then proceed to strike out a name alternately
from the list of ten (10) names until two (2) names remain. From these
two names shall be chosen by lot the Arbitrator. The decision of the
Arbitrator on a grievance presented before him in accordance with the
provisions of this Agreement shall be final and binding upon the
COMPANY, the UNION and the employee or employees concerned,
except in those cases where appeals of an Arbitrators award is permitted
by law.
SECTION 5. Arbitrators Decision

It shall be the

Arbitrators obligation to the COMPANY and the UNION to make the


best effort to rule on cases within thirty (30) days after the hearing.
SECTION 6. Appeal - Except as may otherwise be provided by
law, there shall be no appeal from an Arbitrators decision on a grievance
presented before him in accordance with the provisions of this Agreement
and the decision shall be final and binding on the UNION, on all
bargaining unit employees and on the COMPANY.

SECTION 7. Company Grievances

- Any grievance of the

COMPANY against the UNION or its members, shall be brought directly


by the COMPANY to the UNION President, and/or Grievance
Committee and then to arbitration, if need be, as provided above.
SECTION 8. Time-Off The Company shall allow the UNION
representatives such time-off with full pay as may be necessary for the
handling of grievances, arbitration and conciliation proceedings.
SECTION 9. Access to Company Premises - The COMPANY
agrees that all UNION officers and Shop Stewards, and a reasonable
number of UNION members acting within their specific area of
assignment; and responsibilities shall have access to the COMPANY
premises for any of the following purposes:
(a)

To investigate any grievance that has arisen;

(b)

To ascertain whether or not this Agreement is being


observed:

(c)

To interview for a reasonable time stewards of the UNION;

(d)

To post official UNION notices on the bulletin board


designated by the COMPANY for such purpose;

(e)

To attend officially convened UNION meetings being held


within COMPANY premises; and

(f)

Such other purposes as may be consonant with the


promotion of good relations between the COMPANY and
the UNION;

provided, however, that such right of access shall be exercised judiciously


and does not interfere with the conduct of the COMPANYs operations;
and provided, further, that such UNION representatives desiring access to

COMPANY premises shall, at all times, secure the prior permission of the
COMPANY.
SECTION 10. Plant Shutdown The normal yearly shutdown in
December of every year shall be scheduled anytime between December
16 and January 2 of the next year; provided, however, that in the event
business exigencies require the shortening or extension of the shutdown,
such shortening or extension shall be conveyed to and discussed with the
UNION. The COMPANY shall give the UNION advance notice of at
least one (1) month before the scheduled plant shutdown; provided that
the COMPANY shall draw up a list of sections or departments that will
go on leave for the duration of the shutdown; provided further that should
the COMPANY recall any of these employees to work during the
shutdown, the days worked by such recalled employees shall be
considered as overtime work.
Work performed within the regular work hours by employees
usually needed during the shutdown as determined by the COMPANY
(i.e., line technicians, general maintenance staff, Finance, Planning,
Logistics and Production employees doing inventory-taking) shall not be
considered as overtime; provided, however, that they shall be given a
meal ticket worth P30.00 for everyday that they work, and that their
vacation leave shall be rescheduled or converted into cash upon their own
choice.

ARTICLE IX
HOURS OF WORK
SECTION 1.

Work day

The present work week, hours

of work or work schedules in the COMPANY shall be maintained. The


UNION reiterates its full recognition of and its agreement to the
COMPANYs sole and absolute right to schedule or re-schedule work
hours, shifts and/or work schedules. The UNION further agrees that any
work schedules or work hours that the COMPANY has established or

may establish from time to time does not constitute a guarantee of hours
of work or of pay per day or per week.
SECTION 2.

Deviation in Work Schedules -

The parties

recognize and understand that deviation from, or changes of the existing


work schedules or work hours will be necessary and will unavoidably
result from several causes, such as, but not limited to, leaves of absence,
absenteeism, employee requests, business requirements and emergencies.
The present work shift schedule for production employees are as follows:
First shift

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

Second shift

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

In each shift there shall be a forty-five (45) minute continuous


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

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


1:00 p.m. to 5:00 p.m.

Saturday

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

A fifteen (15) minute snack-break in the morning and in the


afternoon from Monday to Friday shall be considered as time worked
within the regular hours of work. Any deviation in this work schedule
shall be conveyed to and discussed with the UNION.

ARTICLE X
SALARIES AND WAGES

SECTION 1.

Salary/Wage Increases - Employees covered

by this Agreement shall be granted salary/wage increases as follows :


a. Effective January 1, 2016, all employees on regular status
within the bargaining unit on or before said date, shall be
granted a salary increase of P400 on their basic monthly
salary as of December 31, 2016.
b. Effective January 1, 2018, all employees on regular status
within the bargaining unit on or before said date, shall be
granted a salary increase of P400 on their basic monthly
salary as of December 31, 2017.
c. Effective January 1, 2019, all employees on regular status
within the bargaining unit on or before said date, shall be
granted a salary increase of P400 on their basic monthly
salary as of December 31, 2018.
The wage/salary increases granted under this CBA shall be deemed
inclusive of the mandated minimum wage increases under present and
future laws or Wage Orders, and shall be considered as correction of the
wage distortions that may have been brought about by the same.

This

provision has been upheld by the Secretary of Labor in her decision dated
15 October 2003, citing the case of APEX Mining vs. NLRC (G.R.
862200, 25 Feb. 1992, 206 SCRA 497,501) and NFL vs. NLRC (G.R.
103586, 21 July 1994, 234 SCRA311-324).
SECTION 2.

Regularization Increase

- A covered daily

paid employee who acquires regular status within the year subsequent to
the effectivity of a particular salary/wage increase mentioned in Section 1
above, shall be granted a salary/wage increase on a proportionate basis as
follows:
Regularization Period
1st quarter

Equivalent Increase
100%

2nd quarter

75%

3rd quarter

50%

4th quarter

25%

On the other hand, any monthly-paid employee who acquires


regular status within the term of the Agreement shall be granted
regularization increase equivalent to 10% of his regular basic salary.
Section 3. Productivity Based Allowance For the period of this
CBA covered employees may be entitled to productivity based allowance
using as basis the Associates Performance Measurement Program Policy
of the company

Ranking

Rating

Amount of
Performance

A
B
C
D
E

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

Allowance
P480.00
360.00
240.00
120.00
0

Section 4. INDUSTRIAL PEACE INCENTIVE In order to


give premium to the conclusion of this Collective Bargaining Agreement,
without any work stoppage, nor any form of industrial disruption or
sabotage, and considering that this agreement arose from the free and
voluntary agreement of the parties, without resorting to arbitration nor
jurisdictional assumption of the Secretary of Labor and employment, an
Industrial Peace Incentive amounting to a one time grant of THREE
THOUSAND PESOS (P3,000.00) is hereby granted to each covered
employee, effective upon the formal ratification of this CBA.

ARTICLE XI
OVERTIME/PREMIUM PAY AND NIGHT DIFFERENTIAL
PAY

SECTION 1.

Overtime Pay - Any employee who is

permitted or required to render overtime work during regular/ordinary


working days shall be paid, for each hour of such overtime work, his
equivalent regular basic hourly rate plus thirty percent (30%) thereof.
SECTION 2.

Premium Pay

- Any employee who is

permitted or required to work on special holidays or on his designated


rest day shall be paid, for the first eight (8) hours of work, his regular
basic daily or hourly rate plus Forty Percent (40%) thereof.

Work in

excess of eight (8) hours on special holidays and rest days shall be paid
for each hour of such work, based on the employees regular basic hourly
rate plus Eighty Percent (80%) thereof.
SECTION 3.

Holiday Pay -

Any employee who is

permitted or required to work on a regular holiday shall be paid, for the


first eight (8) hours of such holiday work, his regular basic daily or
hourly rate plus one hundred fifty percent (150%) thereof. Should the
regular holiday also be the employees scheduled rest day, he shall be
paid, for the first eight (8) hours of such holiday-rest day work, his
regular basic daily or hourly rate plus One Hundred Eighty Percent
(180%) thereof. Work in excess of eight (8) hours on a regular holiday
falling on the employees scheduled rest day, shall be compensated based
on the employees regular basic hourly rate plus Two Hundred Fifty
Percent (250%) thereof. Subject to the provisions of existing law, any
overtime work on a regular holiday, shall require the consent of the
employees required to perform overtime work.
SECTION 4.

Saturday Afternoon Premium Pay

Any

work rendered on Saturday by non-shift office and technical employees


within the bargaining unit after 12:00 noon, excluding the usual meal
break, shall be considered as overtime work, and shall be paid premium
pay of Fifty Percent (50%) of the employees equivalent regular basic
daily or hourly rate as the case may be.

SECTION 5.

Formula to Determine Hourly Rate

- The

formula to be used in determining the hourly rate of salaried employees


for the purpose solely of computing their overtime and premium pay shall
be as follows:
Hourly Rate =

Monthly Salary x 12
287 days x 8

SECTION 6.

Meal Allowance

- All covered employees

shall be granted a regular meal allowance in the form of meal tickets as


follows:
a. Effective January 1, 2017 P30.00
b. Effective January 1, 2018 P30.00
c. Effective January 1, 2019 P30.00
Employees who perform overtime work of at least four (4) hours a
day shall be granted meal allowances in the form of meal tickets in the
following amounts:
a. P35.00 for overtime work performed on regular working days.
b. P30.00 for overtime work performed on rest days and
holidays.
The COMPANY furthermore commits to stabilize the prices of
rice, vegetable and other viands in the COMPANY canteen.
SECTION 7.

Night Shift Differential Pay - Work between

6:00 p.m. and 6:00 a.m. shall be paid night shift differential pay at
Twenty-Five Percent (25%) of the employees regular basic wage.

ARTICLE XII
LEAVES OF ABSENCE
SECTION 1.

Vacation Leave -

(a) Any employee within the bargaining unit shall be granted


vacation leave with pay every calendar year in accordance with the
following schedule:
Length of Service

No. of Days

At least 6 months to less


than 3 years

15

3 years to less than 4 years

18

4 years to less than 5 years

20

5 years to less than 6 years

22

6 years and above

24

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

to give consideration to the employees preference for the days of their


scheduled leave, subject to the exigencies of the service of the
COMPANY.
SECTION 2.

Sick Leave -

(a) Any employee within the bargaining unit shall be granted sick
leave with pay every calendar year in accordance with the following
schedule:
Length of Service

No. of Days

8 years of service or less

15 days

more than 8 up to 12

16 days

years of service
more than 12 up to 16

17 days

years of service
more than 16 up to 18

18 days

years of service
more than 18 years of service

20 days

(b) Sick leave will only be granted to those employees who are
actually sick and only upon recommendation and proper certification by
the COMPANY physician.
(c) Unused sick leaves shall be treated similarly as unused vacation
leaves in accordance with Section 1 (b) of this Article.
SECTION 3.

Emergency Leave

The COMPANY

agrees to grant emergency leave with full pay not exceeding eight (8)
days a year to regular employees covered by this Agreement on any of the
following cases:
(a)

in case of serious illness of legitimate spouse, child, father,


mother, brother or sister.

(b)

in case of death of legitimate spouse, child, father, mother,


brother, sister, or in-laws.

(c)

in cases of earthquake (intensity 4 or more in the Richter


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

In no case shall an employee avail himself of more than eight (8)


days total emergency leave with pay during a year.

The above cases or conditions warranting the grant of emergency


leaves are subject to verification and final approval by the COMPANY. It
is understood that all unused emergency leaves shall not be convertible
into cash.
SECTION 4.

Union Leave

- The COMPANY agrees to

grant to employees who are UNION officers or members a combined


total of Fifty (50) days UNION leave with pay and another Thirty-seven
(37) days UNION leave without pay for the purpose of attending labor
seminars and conferences, upon recommendation by a sponsoring
federation, organization, or educational institution and prior approval by
the COMPANY.

It is expressly agreed, however, that in no case shall

any one UNION officer or member be on UNION leave exceeding fifteen


(15) working days a year, unless for very special reasons, an extension is
necessary, in which event prior consent by the COMPANY is required.
No more than two (2) UNION officers or members shall at the same time,
be on UNION leave. Unused UNION leave shall not be cumulative or
convertible to cash.

SECTION 5.

Presidents Privilege - To enable the UNION

President to attend diligently to UNION matters and further strengthen


labor-management relationship, he/she shall enjoy flexible and liberalized
work schedule which will require him/her to report for work for 48 hours
a week.
SECTION 6.

Maternity Leave - Maternity leave shall be

granted in accordance with law and a financial assistance of P3,000.00


for normal delivery shall be granted. However, an employee who
undergoes caesarean section shall have the option of either availing
herself of additional thirty (30) days maternity leave with pay or the
hospitalization benefit provided for covered employees in the subsequent
paragraph.
The COMPANY shall grant a hospitalization assistance of
P10,000.00 a year for covered pregnant employees delivering by
caesarean section. Availment of this benefit by an employee who
undergoes caesarean section shall bar her application for and enjoyment
of the additional thirty (30) days maternity leave mentioned above.
SECTION 7. Paternity Leave

Paternity leave of seven (7)

days shall be granted to qualified employees.

ARTICLE XIII
MEDICAL, DENTAL AND HOSPITALIZATION BENEFITS
SECTION 1.

Hospitalization Benefits - The COMPANY

shall provide employees within the bargaining unit with hospitalization


and medical benefits as agreed by the parties; provided that the maximum
amount insofar as dreaded disease is Fifty-five Thousand Pesos
(P55,000.00) and normal disease should be included up to Twenty five
Thousand Pesos (P25,000.00) It is understood, however, that the annual
medical check-up included in the aforesaid program shall be conducted
for those who shall become permanent after the signing of this Agreement
only after twelve (12) months from date of permanency.

The COMPANY will enroll qualified employees to a Health


Maintenance Organization (HMO) Program up to the covered amount as
mentioned above with the effectivity of coverage thereof to the said
HMO Program after the signing of this Agreement. Employees qualified
dependents, up to a maximum of three dependents per qualified
employee, will be covered under the HMO Program starting January 1,
2005.
SECTION 2.

The COMPANY shall, on appointment basis,

open its medical clinic on Saturdays to employees dependents for minor


treatment and consultation.

In addition, emergency cases will be

accommodated.
SECTION 3.

Dental Benefits -

The

COMPANY

shall

continue to maintain a dental clinic to provide dental services to each


employee. The clinic shall also maintain stock and emergency medicines
for the benefit of the employees. Dental services free of charge shall be
granted to the employees consisting of prophylaxis, extraction and all
kinds of routinary treatment of dental cavities and ordinary filling.
SECTION 4.

Optical Benefits

The COMPANY agrees

to shoulder the full cost of eyeglasses (up to the maximum amount of


P600.00)

prescribed

by

and

purchased

from

the

COMPANY

Ophthalmologist once during the effectivity of this Agreement and only


for regular employees who have rendered at least twelve (12) continuous
months of service to the COMPANY. For any employee whose eye
refraction has changed drastically during the term of this Agreement as
certified to by the COMPANY Ophthalmologist, the COMPANY agrees
to pay for the new lens that may be prescribed by said Ophthalmologist.

ARTICLE XIV
OTHER BENEFITS

SECTION 1.

Company Uniforms - The

COMPANY

agrees to provide free uniforms a year as follows:


(a)

To all employees - 2 smocks with head caps each and, if


necessary, face masks to production employees

(b)

Slippers

Additional smocks may be granted to employees as demanded by


the nature of their jobs.
SECTION 2.

Group Life and Accident Insurance -

The

COMPANY agrees to extend all covered employees a Group Life


Insurance Plan, (with accidental death and dismemberment coverage) at
a face value of One Hundred Forty Thousand Pesos (P140,000.00).
SECTION 3.

Christmas Bonus

- The COMPANY shall

grant a Christmas bonus yearly to all employees as follows: for dailypaid employees, the sum equivalent to their basic daily rate times 26
days, and for monthly-paid employees, the sum equivalent to their one
month pay, which is also in compliance with P.D. 851.
SECTION 4.

Gift Certificates

In celebration of the

Christmas season, the COMPANY shall grant to each employee within


the bargaining unit a gift certificate worth One Thousand Three Hundred
Pesos (P1,300.00) which shall be given at least a week before December
25.
SECTION 5.

14th Month Pay - All employees covered by

this Agreement shall receive every year a bonus, equivalent to their basic
daily rate multiplied by thirteen (13) days for daily-paid employees, and
one-half (1/2) of their basic monthly salary for monthly-paid employees.
Those who will resign without completing the calendar year shall be
entitled to a proportionate amount of the benefit.

SECTION 6.

Bereavement Benefit

In the event an

employee dies, the COMPANY shall grant his legitimate dependents,


upon showing adequate proof of kinship, a bereavement benefit of Forty
Thousand Pesos (P40,000.00). The sum of Fourteen Thousand Pesos
(P14,000.00) shall be given to the employee, if married, upon the death of
his/her legitimate spouse or children. If the employee is unmarried, the
sum of Fourteen Thousand Pesos (P14,000.00) shall be given to him/her
for the death of his parents. It is understood that only one payment shall
be claimed and made for each case of death.
SECTION 7.

Retirement Benefits

Retirement benefits

shall be granted to all covered employees in accordance with the


provisions of the Retirement Plan, subject to the qualification that
effective January 1, 1994, the base rate for computing the benefits shall
be increased from seventy-five percent (75%) to one hundred percent
(100%) of the final monthly salary. The rate of retirement benefits per
year of service effective 1 January 2000 shall be as follows:
10 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%

SECTION 8.

Attendance Bonus -

Employees covered by

this Agreement shall henceforth be entitled to an attendance bonus


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

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

First week of January payroll of the following year (from

June)

June to December)
SECTION 9. Reporting Benefits - The COMPANY may, in case
of emergency resulting from power failure, fire or other calamities that
may affect the operation of the COMPANY, declare that a shift or fraction
of any shift be cancelled, in which event, the COMPANY shall pay the
employees as follows:
(a)

Actual work or COMPANY-demanded waiting time of less


than four (4) hours -

(b)

50% of basic daily wage

Actual work or COMPANYdemanded 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 FIVE-SISTER LOGO pin;
For employees who have completed twenty (20) years of service golden FIVE-SISTER LOGO pin plus one (1) month salary;
and
For employees who have completed twenty-five (25) years of
service - golden FIVE-SISTER LOGO pin plus two (2) months
salary.
SECTION 11. Educational Subsidy

- The COMPANY shall

grant a yearly educational subsidy of One Thousand Two Hundred Pesos


(P1,200.00) to every employee covered by this Agreement who either is
himself officially enrolled and pursuing a course in a school recognized

by the Department of Education and Sports, or has a legitimate child who


is so enrolled. To be entitled to this benefit, which is payable at least a
week before the school opening, the employee must submit to the
COMPANY satisfactory proofs of his or his childs enrollment within a
reasonable period prior to claiming the benefit.
SECTION 12. Rice Subsidy

- All covered employees shall be

granted rice subsidy equivalent to One Thousand Fifty (P1,050.00) per


semester.
SECTION 13.

Service Bus -

The COMPANY shall provide

sufficient number of service bus which shall be made available to shifting


employees.
SECTION 14. Salary Loan - The COMPANY shall extend a
salary loan equivalent to Five Thousand Pesos (P5,000) per year to
qualified regular employees at zero percent interest payable within the
fiscal year on any of the following contingencies affecting the employee
and his immediate family, including his parents
a)

Educational related emergencies

b)

Maternity and Paternity emergency requirements;

c)

House repairs

ARTICLE XV
SEPARABILITY CLAUSE
The provisions of this Agreement are separate and independent
from each other and are not to be construed or interpreted as having
restrictive or expansive effect upon the meaning, interpretation or
execution of any other provision of this Agreement, either implicitly or
explicitly, unless it is so specifically provided.
Should any part of this Agreement be declared invalid because of
conflict between its provisions and any provision of any present or future

law, statute, government decree, rule or order, such invalidity shall not
affect the remaining valid portions of this Agreement.

ARTICLE XVI
EFFECTIVITY AND DURATION
SECTION 1.

Period

- This re-negotiated Agreement shall

take effect from January 1, 2007 to December 31, 2009.


SECTION 2. Binding Effect -

The terms of this Agreement

shall remain in force during the negotiations for a new agreement and
until such new agreement is finally reached and entered into. During its
effectivity, this Agreement shall be binding upon all employees of the
COMPANY within the bargaining unit and shall not be modified by court
action or by concerted activity of the UNION, its members and said
employees.

ARTICLE XVII
RATIFICATION
SECTION 1. Ratification The UNION assures the COMPANY
that this Agreement has been duly ratified and approved by the
membership of the UNION.
IN WITNESS WHEREOF, the parties hereto by their respective
representatives affix their signatures on this 18th day of January, 2016 at
Laoag City, Philippines.

FIVE-SISTER, INC.

FIVE-SISTER EMPLOYEES UNION (FEU)

Corporation

UNION

By:

By:

__________________________

____________________________

General Manager

President

__________________________

____________________________

Human Resources Manager

Vice-President

__________________________

____________________________

Manufacturing Manager

__________________________

Secretary

____________________________

Finance Manager

Treasurer

Assisted by:

Assisted by:

__________________________

____________________________

Legal Counsel

__________________________

National President

____________________________
Legal Counsel