COLLECTIVE BARGAINING AGREEMENT

2019-2023

KNOW ALL MEN BY THESE PRESENTS:

This Collective Bargaining Agreement, made and entered into by and between:

The AD COLEUM ADVERTISING CORPORATION, a corporation duly organized under

Philippine law with principal office at Manila City, represented herein by its General Manager,
Ambrose Spellman and Human Resource Manager Dorcas Blackwood, herein referred to as the
CORPORATION.

-and-

The SAMAHAN NG EMPLEYADO NG AD COLEUM (SEAC), a legitimate labor

organization duly registered with the Department of Labor and Employment, with office address
at 1611 Beaterio St. Intramuros, Manila, herein represented by SEAC President Sabrina Kinkle,
Vice-President Harvey Bishop and Secretary Leroy Jethro Gibbs, herein referred to as the
UNION.

-WITNESSETH-

WHEREAS, the UNION, through its list of membership and other pertinent evidence,
has established to the satisfaction of the CORPORATION that it represents a majority of the
regular rank and file personnel employed by the CORPORATION in the Philippines;

WHEREAS, it is the mutual desire of the parties to establish, maintain and regulate the
standard hours of work, rates of pay and other terms and conditions of employment under which
the members of the UNION who are employees of the CORPORATION shall work for the latter
without any fear of any unjust act and reprehension.

WHEREAS, it is the mutual desire of the parties hereto to advance the general welfare,
health and safety and the best interests of the employer and employees by the settlement of
issues respecting terms and conditions of employment and by providing methods for the fair,
peaceful adjustment of disputes that may arise between the UNION and the CORPORATION.

WHEREAS, the CORPORATION and the UNION have agreed in principle to enter into a
covenant in accordance with the Labor Code of the Philippines for purpose of affording
economic as well as material benefits, equal justice, protection and job security to employees;
assuring and sustaining high employee efficiency; competence and performance; assuring the
continuous and efficient operation of the CORPORATION’s business; establishing a firm basis
and clear understanding of rights and obligations of both parties in an atmosphere of mutual
respect; providing means for the amicable settlement of all disputes and grievances and
generating industrial peace, progressive Capital-Labor relationship to the end that the
CORPORATION, the UNION and general public may mutually benefit.

NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual
agreements hereinafter set forth, the parties hereby agree as follows:

Page 1 of 13
 ARTICLE I
RECOGNITION

SECTION 1. Recognition - The CORPORATION recognizes the Union as the sole and
exclusive collective bargaining representative of all its regular rank and file employees in the
CORPORATION 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 CORPORATION and in any establishment that may be organized by the
CORPORATION in the future with the same nature of business and where the CORPORATION
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 CORPORATION 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:

a. Executives, managers, supervisors and those employees exercising any of the attributes
of a managerial employee;
b. Finance, HR and IT Department employees, Department secretaries, and personnel
assigned to the Office of the General Manager;
c. 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 CORPORATION 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 CORPORATION.

Page 2 of 13
 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 CORPORATION.

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. Present Regular Employee. All regular rank and file employees within the
bargaining unit who are members of the UNION as of the date of the signing of the agreement
must, as a condition of continued employment by the CORPORATION, maintain their
membership in good standing in the UNION for the duration of this Agreement. All permanent
rank and file employees belonging to another UNION at the time of the effectivity of this
Agreement shall pay an agency fee equivalent to the union dues paid by the UNION members.

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 CORPORATION or the UNION.

Section 2. Newly hired Employee. Newly hired permanent rank and file employees and
newly regularized rank and file employees must, as a condition of employment, 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 CORPORATION.

Section 3. Dismissal for violation of union security. A permanent rank and file
employee, who during the effectivity of this Agreement, resigns from the UNION, commits a
crime against the federation, Union Officers, and members; fails to pay fees due to the UNION
for 3 consecutive months; joins another labor union or refuses to join the UNION (save for those
exempted from the requirement); or violates the UNION’s Constitution and By-Laws, shall be
dismissed by the CORPORATION upon demand by the UNION and upon observance of due
process.

Section 4. Accountability of UNION. In the event that a union member is held by an

appropriate Court to have been illegally dismissed by the CORPORATION, acting pursuant to
the demand of the UNION according to Section 3 of this Article, the CORPORATION shall not
be held liable. The UNION is responsible for any liability which may arise from said unlawful
termination.

ARTICLE III
OBLIGATIONS OF BOTH PARTIES

Section 1. Justice and Fairness – In the exercise of rights, the COMPANY shall
observe justice and fairness, and the COMPANY shall not discriminate against an employee of
his membership in the UNION.

Section 2. Discipline – The UNION shall assist the COMPANY in promoting and
maintaining discipline, housekeeping, security of COMPANY assets and cooperation with the
objective of achieving maximum efficiency in the COMPANY’S operations and shall enjoin all its

Page 3 of 13
members to render and perform their duties and responsibilities with due diligence, loyalty and
efficiency.

Section 3. Mutual Cooperation – Recognizing the job security and individual

employees welfare will be further enhance through mutual cooperation, the UNION hereby
agrees to extend full support and cooperation with the COMPANY in cutting down unnecessary
costs and expenses in its operations.

ARTICLE IV

CHECK-OFF UNION DUES AND SPECIAL ASSESSMENTS

Section 1. Check-off Union Dues - The CORPORATION agrees to check-off or deduct

once a month from the wages of the members of the UNION all monthly union dues in such
definite amounts as provided for in the UNION’s Constitution and By-Laws, pursuant to a check-
off authorization signed by the members.

Section 2. Special Union Assessment - The CORPORATION also agrees to check-off

or deduct special union assessments from the pay of the UNION members subject to the
following conditions:

a. UNION will submit Board Resolution duly certified by the President and Executive
Secretary;

b. CORPORATION is notified at least seven (7) working days before payment.

Section 3. Non-Union Members - The CORPORATION shall also check-off from non-
union members within the collective bargaining unit an agency fee equivalent to the dues and
other fees regularly paid by UNION members, without the need for individual check-off
authorization.

Section 4. Remittance - The CORPORATION shall remit, within seven (7) working days
from check-off date, to the Secretary of Finance of Samahan ng Empleyado ng Ad Coleum or
any of its duly authorized representatives, the total amount of the checked-off dues and agency
fees. The CORPORATION, shall remit in whole the special assessment to the Secretary for
Finance within seven (7) working days from check-off date.

Section 5. Employee Records - The CORPORATION 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 CORPORATION 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 V
MANAGEMENT PREROGATIVES

Section 1. Except as modified by express provisions of the Agreement, the UNION

recognizes the right of the COMPANY to supervise, manage and conduct its business
operations, including but not limited to, the direction of the working force, the hiring, rehiring,
assignment, transfer, transfer to Manila and other places, promotion, demotion, discharge, lay-
off, recall, suspension and discipline of employees; the determination of the number of
employees in any department, shift or job classification; the determination of the number and
enforcement of regular and overtime work schedules; the establishment and revision of
COMPANY policies, rules and regulations, including security working rules.

Page 4 of 13
It is further understood and agreed that all rights, powers or authority possessed by the
COMPANY prior to the signing of this Agreement shall be retained by the COMPANY, except in
so far such rights, powers or authority are herein expressly modified by the terms of this
Agreement.

Section 2. The COMPANY shall be at liberty to hire employees to fill in any positions it
deemed vacant upon such basis of compensation as may be agreed upon the time of hiring,
and the UNION recognizes that this is the exclusive prerogative of Management.

Section 3. The COMPANY may likewise transfer, discharge, lay-off or discipline any
probationary or temporary employees at its discretion, and such action shall not be subject of
the grievance procedure hereunder.

Section 4. The UNION however may seek reconsideration of any discharge, except for
theft, gross disrespect to immediate superiors and to company officers, serious misconduct or
willful disobedience of the lawful orders of his officers in connection with his work; gross and
habitual neglect of his studies, fraud or willful breach of the trust reposed in him by his employer
or duly authorized representative; commission of a crime or offense against the person of his
employer or any immediate member of the family or his duly authorized representative; and
other causes analogous to the foregoing (as amended by Batas Pambansa Blg. 130) and
furthermore, any other causes which are not covered by the Labor Code but maybe later on
incorporated in the Code. Provisions on Employee Conduct & Discipline in the Company’s
Policies shall also form part under this Section.

ARTICLE VI

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 CORPORATION, possess
the necessary qualifications for the position. The CORPORATION 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 CORPORATION, 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 CORPORATION 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 employee’s length of

continuous service with the CORPORATION, counted from the first day of his employment.

Page 5 of 13
 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 CORPORATION. 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 CORPORATION 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 CORPORATION’s retirement
plan, whichever is higher

Section 7. Transfer of personnel - except for reasons of operational requirements or

business exigencies, the CORPORATION 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. Creation of New Position - Upon creation of a new position, the

CORPORATION shall inform the UNION in writing. Thereafter both parties shall determine
whether or not such employee falls within the bargaining unit.

Section 9. Due Process - The CORPORATION shall guarantee the security of tenure of
the employees covered by the CBA. No disciplinary action or dismissal shall be effected without
observing due process.

Section 10. Employees’ Handbook - The CORPORATION shall furnish every

employee with a copy of the Employees’ Handbook, containing the code of ethics, rules and
CORPORATION policies, which the employees are bound to obey and the corresponding
penalties for the violations thereof.

Section 11. Anti-Discrimination - The CORPORATION shall not discriminate any

UNION member in all employment matters or in regards to wages, hours of work and other
terms and conditions of employment.

Section 12. Contracting out -The CORPORATION shall not, on any occasion, contract
out jobs or functions regularly performed by the permanent rank and file employees covered by
the CBA.

Page 6 of 13
 Section 13. Vacancy - In case of vacancy of a position, the CORPORATION agrees to
consider first those employees who have indicated their desire in writing to assume the office,
provided they are qualified.

Section 14. Change in status, and or ownership - the CORPORATION 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
CORPORATION shall exert best effort to have the new administration respect the existing
collective bargaining agreement between the CORPORATION and the union.

ARTICLE VII
PROMOTION AND MERIT INCREASES

Section 1.Effectivity - Promotions recommended by an authorized officer and approved

according to CORPORATION regulations shall be communicated to the recommending officer
and the concerned employee and shall be effective upon notice to employee.

Section 2.Criteria - In promoting employees, the CORPORATION shall consider the

following criteria:

2.1 Seniority in length of service

2.2 Experience/technical preparation required for the position

2.3 Performance in previous position occupied by employee

2.4 Educational/specialized preparation consistent with the qualifications required

for the job

2.5 Character, personality and integrity of the employee

Section 3. Merit Increases - The CORPORATION shall provide incentives for excellent
individual performance, to be determined after a quarterly performance appraisal by the superior
officer of the employee, based on a standard and system agreed upon by the UNION and
CORPORATION.

ARTICLE VIII
GRIEVANCE MACHINERY

Section 1. Grievance Procedure. An employee who has a grievance arising from

alleged violations of any provision of this Agreement or of the provisions of the Labor Code may
take up the matter in writing with their UNION OMBUDSMAN, who shall thereafter attempt to
settle the issue with the representative of the CORPORATION within 5 working days from
presentation of grievance.

Section 2. Arbitration. Should the first step fail, the grievance may be referred to an
Arbitrator to be chosen by both the CORPORATION and the UNION, whose decision shall be
final and binding, except when the Arbitrator committed grave abuse of discretion.

ARTICLE IX
SALARY INCREASES

Section 1.Salary Increase. The CORPORATION shall grant every permanent rank and
file employee covered by this CBA an annual increase as follows:

1.1 Effective January 1,2019 2.5% of Basic pay plus P1,000 to all permanent rank and file
employees as of January 1, 2019

Page 7 of 13
1.2 Effective January 1, 2020 2.0% of Basic pay plus P1,000 to all permanent rank and file
employees as of January 1, 2020

1.3 Effective January 1, 2021 2.0% of Basic pay plus P1,000 to all permanent rank and
file employees as of January 1, 2021

The CORPORATION and the UNION shall deliberate upon the increase for the years
2022 and 2023. Said negotiations shall be completed on or before November 11, 2023.

ARTICLE X
WORKING DAYS, HOURS OF WORK, OVERTIME AND PREMIUM PAY, HOLIDAYS AND
NIGHT SHIFT DIFFERENTIAL

Section 1.Regular Working Days. Due to the nature of the business in which the
CORPORATION is engaged, the CORPORATION shall observe a six (6) day work week, with 1
rest day, the specific day of the week to be determined according to the employee’sshift
schedule.

Section 2. Regular Working Hours. The CORPORATION working hours shall be

divided into two shifts, the first shift from 8:00am-2:00pm, the second shift from 2:00pm-8:00pm.
An employee shall be required to work one shift in one working day.

Section 3. Overtime pay. Work performed beyond the designated shift shall be paid an
additional compensation equivalent to the employee’s regular wage plus twenty-five
percent (25%) thereof.

3.1 Work performed beyond the designated shift on a holiday or rest day shall be
paid an additional compensation equivalent to the rate on a holiday or rest day
plus forty percent (40%) thereof.

3.2 Work performed beyond the designated shift on a regular holiday shall be
paid an additional compensation equivalent to the rate on a regular holiday plus
fifty percent (50%) thereof.

3.3 No employee covered by this agreement shall perform overtime work without
duly approved overtime authorization from the Store Manager.

Section 4. Premium pay. Where an employee is made or permitted to work on his

scheduled rest day or special holiday, he shall be paid an additional compensation (for his
designated shift) of forty percent (40%) of his regular wage. Where such holiday work falls on
the employee’s scheduled rest day, he shall be entitled to an additional compensation of fifty-
five per cent (55%) of his regular wage.

For worked performed on a regular holiday (for his designated shift), the employee shall
be compensated twice his regular daily wage plus 10% of such daily wage. If such holiday
falls on a scheduled rest day, the employee shall be compensated with twice his regular daily
wage plus 55% thereof.

ARTICLE XI
LEAVES

Section 1. Vacation Leave - Each permanent rank and file employee shall be entitled to
15 working days vacation leave with full pay for every year of the effectivity of this agreement.

The vacation leave shall be filed at least 5 days before the desired day of leave, subject
to approval of the CORPORATION. When the exigencies of the business so requires, the
CORPORATION can reschedule the vacation leave within the year, with the consent of the

Page 8 of 13
employee. Otherwise, the CORPORATION shall pay the employee the cash equivalent of
his/her vacation leave at the end of the year.

Section 2. Sick Leave - Each permanent rank and file employee shall be allowed fifteen
(15) working days sick leave with pay for each year of the effectivity of this agreement.

Unused sick leaves may be accumulated and carried over to the succeeding years,
provided however that the maximum sick leave with pay which an employee may avail of in any
particular year shall not exceed 25 working days.

Unused sick leaves in excess of 25 working days shall be paid in its cash equivalent at
the end of each year.

Section 3. Maternity Leave - Maternity leave of employees shall be in accordance with

the existing laws in which case, it shall be based on the following:

For caesarian section 78 Calendar days

For normal delivery or miscarriage 60 Calendar days

Section 4. Paternity Leave - The CORPORATION shall grant each married male
employee a paternity leave in accordance with the existing law.

Section 5. Birthday Leave - The CORPORATION grants a birthday leave of one (1) day
with full pay to each employee covered by this agreement. If the birthday falls on a non-working
day, the employee may choose to be on leave the preceding date or any working day of his/her
birth month.

Section 6. Union Leave - The CORPORATION shall allow officers of the UNION,
namely the President, Vice-President, Secretary, Auditor, Treasurer and PRO, leave with full
pay for the purpose of UNION meetings and conventions in the regional and national levels,
provided that notice of such leave be filed at least 1 week in advance, provided further that only
a maximum of 2 UNION officers may avail of this leave at one particular time.

SECTION 7. President’s 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.

ARTICLE XII
RETIREMENT AND SEPARATION

Section 1. Retirement pay - The CORPORATION shall grant retirement pay as follows:

a. At least 10 years of service – one-half month basic pay for every year of
service;

b. At least 15 years of service – one month basic pay for every year of
service;

c. At least 20 years of service – one and a half month basic pay for every
year of service

d. This benefit cannot be enjoyed by any employee who is dismissed for

cause.

Page 9 of 13
 Section 2. Compulsory retirement - Any employee who reaches the age of forty-five
(45) years, shall be subject to compulsory retirement, regardless of length of service in the
CORPORATION.

ARTICLE XIII
OTHER EMPLOYEE BENEFITS

Section 1. Rice Allowance. The CORPORATION agrees to grant to each employee

covered by the Agreement, rice allowance of P1,000 per month.

Section 2. Uniform Allowance. The CORPORATION shall grant annually to each

employee covered by the CBA, free uniform to be given 1st week of January each year of
effectivity of this agreement.

The UNION is granted the right to choose the uniform design for each year,
which shall be effected and implemented on the 1st week of March of each year.

Section 3. 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 4. 13th Month Pay - 13th month pay shall be given to the permanent rank and
file employees equivalent to one month basic pay to be paid at the end of each year.

Section 5. 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 6. Attendance Bonus - Employees covered by this Agreement shall

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

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

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

Section 7. Reporting Benefits - The COMPANY may, in case of emergency resulting

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

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

(b) Actual work or COMPANY–demanded waiting time of more than four (4) hours -
100% of basic daily wage

Section 8. 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;

Page 10 of 13
 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 9. Other benefits - Benefits, rights, privileges or concessions, which are

presently being enjoyed by the employees but are not expressly provided for in this Agreement
shall be maintained by the CORPORATION, unless expressly superseded by any subsequent
Agreement.

ARTICLE XIV
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.

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 XV
STRIKES AND LOCKOUTS

Section 1. NO STRIKE CLAUSE – The UNION recognizes that the way to preserve job
security, and to improve the welfare of the employees is to increase the goodwill and prosperity
of the business of the COMPANY and that this is accomplished in large part through prompt,
courteous, interested, loyal and complete service by the employees to the COMPANY and its
clientele and it, therefore, being to the mutual interest of the COMPANY, the UNION and the
employees that the business of the COMPANY shall continue without inconvenience to the
public, the UNION and its members or any employee, individually or collectively shall not, during
the term of this Agreement, its renewal or extension, cause, permit or take part in any strike,
stoppages or slow-down, boycotts, secondary boycotts, refusal to handle work, picketing, sit-

Page 11 of 13
down strikes or any kind of sympathetic or general strikes or any interference with the
operations of the COMPANY, including walkouts and demonstrations against the COMPANY or
any office or employee of the COMPANY.

Section 2. NO LOCKOUT CLAUSE – On the same premise as above, the COMPANY

shall not, during the term of this Agreement, engage in a lockout against the UNION.

ARTICLE XVI
WAIVER

Section 1. WAIVER CLAUSE. The COMPANY and the UNION acknowledge that during
the negotiations resulted in this Agreement, each of them had the unlimited and unrestricted
right and opportunity to make demands and proposals with respect to any and all matters which
could properly be the subject of collective bargaining, and that it was through the exercise of
that right and prerogative that the covenants and stipulations herein contained were arrived at
and agreed upon. The COMPANY and the UNION, therefore, agree that during the effectivity of
this Agreement any benefits granted herein if already provided by law shall not be obligated to
bargain collectively with respect to any subject or matter whatsoever whether covered herein or
not, or whether or not within the knowledge or contemplation of either or both parties at the time
they negotiated and signed this Agreement, or for the purpose of amending, revising ,
supplementing or any manner or modifying, or revoking or terminating this Agreement.

ARTICLE XVII
SEPARABILITY

Section 1. Construction - Each article herein is separate and independent of each

other and is not to be construed or interpreted as having restrictive and expansive effect upon
the meaning, interpretation, or execution of any other articles of this Agreement, either implicitly,
unless it specifically so provides.

Section 2. Separability - In the event that any provisions of this Agreement shall conflict
with any present or future applicable law, the provision of such law shall prevail without however
affecting the other provisions of this Agreement.

ARTICLE XVIII
DURATION OF AGREEMENT

Section 1. Duration - This Agreement shall be effective for a period of five (5) years
from January 1, 2013 insofar as the representation aspect is concerned. All other provisions of
this Agreement shall be in effect for a period of three (3) years and shall be subject to
renegotiation within a starting September 1, 2015.

Section 2. Renegotiation - Notice of intentto modify the provisions of this Agreement

shall be given not later than 60 days prior to the intended date of negotiation.

Section 3. Ratification – The UNION assures the COMPANY that this Agreement has
been duly ratified and approved by the membership of the UNION.

Page 12 of 13
IN WITNESS WHEREOF, the parties hereto by their respective representatives affix their
signatures on this ____th day of ____, 20___ at Manila City, Metro Manila, Philippines.

For the Company: For the Union:

Ambrose Spellman Sabrina Kinkle

General Manager Union President

Dorcas Blackwood Harvey Bishop

Human Resource Manager Union Vice President

Tomasito Patnum Leroy Jethro Gibbs

Manufacturing Manager Secretary

Zilda Cerberus Hilda Wardwell

Finance Manager Treasurer

Assisted by: Assisted by:

Atty. Nicolas Scratch Atty. Claire Hawthorne

Legal Counsel Legal Counsel

Page 13 of 13