Summary of agreements between and

CBA 2011-2013

The following summarizes the agreements reached between the Management and the Union panels for the Collective bargaining Agreement (CBA) of 2011-2013:

1.  Non-Economic

Term of the new CBA: January 1, 2011 to December 31, 2013

Retain provisions of the 2008-2010 CBA that were not revised or deleted by the negotiations.

Union Leave: 205 working days (2011); 205 working days (2012); 225 working days (2013)

2.  Economic

Reword provision on Calamity Assistance (Article XXIII, Section 4) to: “The Company shall grant calamity assistance to any employee whose house or residence suffered substantial destruction/damage caused by fire, earthquake, typhoon, flood, volcanic activity or nuclear accident rendering his/her place of residence unsafe or uninhabitable for at least one day. Priority shall also be given to him/her on housing loans, provided pending applications are moved backward.”

 Both parties also agreed that in case of calamity the Company will engage the Union in partnership to operationalize the assistance that will be given to affected employees.

Retain current provision on Retrenchment/Redundancy (Article III, Section 11) bearing in mind that the treatment of the SL/VL component of the separation pay shall be in accordance with current and existing BIR guidelines.

Rice Subsidy: P1,760 (2011); P1,800 (2012); P1,860 (2013)

Christmas Package: P4,400 VAT inclusive (2011); P4,600 VAT inclusive (2012); P4,800 VAT inclusive (2013)

Out patient Medical Benefit: P19,000 (2011); P20,000 (2012); P21,000 (2013)

§   Bereavement Assistance: P30,000 for death of dependent/family (as enumerated in the CBA); P48,000 or one month salary whichever is higher for death of employee

Bereavement Leave: Uniform six (6) working days for all qualified employees regardless of geographical location

Maternity Benefits:

Delete subsection (b) of current Article X, Section 7 on the accumulation of Vacation Leave credits up to 65 days. The revised section will now read as follows: “Where the employee who has gone on leave is recalled or who is scheduled to go on leave is prevented from enjoying the same because of business or operational need, the Company shall:

a.      Allow carry-over and use by the employee of such leave up to end of June of the following year.

b.      Convert to cash accumulated leave credits upon employee’s separation from the company.”

Reduction of Sick Leave accumulation from 65 days to 40 days. Any credits in excess of 40 as of December 2010 shall be converted to cash and paid out on February 2011.

Enhance Article XII, Section 9 to read as follows: “Employees afflicted with dreaded diseases, specially cancer, severe orthopedic injuries, acute myocardial infarction, uremia, liver cirrhosis and stroke, or other diseases certified as dreaded by the company physician shall be allowed up to a maximum of six (6) months leave with pay inclusive of earned sick leave credits”.

Delete Article XVIII, Section 5 on the grant of Company manufactured drugs and medicines

Revise  Article XXIII, Section 1 to read as follows: “The Company shall grant discount to its employees who make EDO purchases of company products for their own personal consumption as follows:

40% for all milk products

50% for vitamins

50% for dented canned stocks”

Reword Article XXIII, Section 9 as follows: “The Company agrees to help ensure the facilitation of the employee’s application for salary loan with the SSS and/or Pag-IBIG”.

Reword Article XXIV, Section 3 as follows: “When a rank-and-file employee is assigned on a temporary basis to perform the duties and responsibilities of another rank-and-file position classified as higher position, the differential pay shall be P100 per day, provided that the temporary assignment is not within his job ladder. If the temporary assignment is within his job ladder, no differential pay will be given. When the rank-and-file employee is assigned on a temporary basis to perform the duties and responsibilities of a team/process leader position or an exempt position, the differential pay shall be P150 per day.

 Both parties also agreed to ensure that the Skills Enhancement Program (SEP) guidelines should reflect the mandatory training for those employees identified with skills gaps.

 Industrial Peace Bonus: P35,000 per union member as of record date Dec. 15, 2010

Salary Increases:

The variable pay of P600 @ FP will be split as follows:

20% Total Company Sales

80% Individual/Team Performance

The P4P component shall be computed based on the following metrics:

Examples: (to compute for P4P)

a. If Company meets Total Sales target and Individual/Team Performance meets Base                 Performance, P4P is P300.

b. If Company does not meet Total Sales target but Individual/Team Performance is                    Fully Performing, P4P is P480.

CONFORME:

For the Management Panel                                                  For the Union Panel

Camille Caniza                                                                                    MannySalamat/Rodel Cawili

Secretary                                                                                              Secretaries

Ma. Vivian A. Cheong                                                             Reynaldo A. Hernandez

Chairman                                                                                        Chairman