COLLECTIVE BARGAINING AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

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

The JUMEGA SADINES, INC., a corporation duly organized under Philippine law
with principal office at Cebu City, represented herein by its General Manager, Ceasar
Montana and Assistant General Manager Piolo Ascal, herein referred to as the
CORPORATION.

-and-

The JUMEGA SARDINES EMPLOYEES UNION (JSU), a legitimate labor

organization duly registered with the Department of Labor and Employment, with office
address at 3F Fishy Building, Guadalupe Cebu City, herein represented by JSU
President Marangal Magdadaro and Vice-President Maria Hiyas Tapang, 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 employees constituting the appropriate bargaining unit;

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

ARTICLE I
UNION RECOGNITION AND SCOPE

Section 1. Recognition. The CORPORATION recognizes the UNION as the sole and
exclusive bargaining representative for all rank and file employees of the
CORPORATION in all matters pertaining to salaries, wages, hours of work, employees’
benefits and allowances and other terms and conditions of employment.

Section 2. Composition of Bargaining unit.The bargaining unit covered by this

agreement consists of all permanent rank and file employees of the CORPORATION
below the rank of supervisors, excluding managerial employees and supervisory
employees.

2.1 Managerial employees or those vested with powers or prerogatives to lay

down and execute management policies and/or to hire, transfer, suspend, lay-off,
recall, discharge, assign or discipline employees like accountants, Human
resources Manager, Purchasing & Inventory Manager, Marketing Manager and
Sales Manager.

2.2 Supervisory employees or 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 requires the use of independent
judgment such as the store managers.

2.3 Permanent rank and file employees are those employees, not being a
managerial or supervisory employee as defined above, upon whom a permanent
status is expressly conferred including those who have been employees of the
CORPORATION for a period of at least 6 months, engaged in work or exercising
functions usually necessary or desirable in the business.

Section 3. Automatic Exclusion. Upon the promotion, transfer or appointment in a

permanent capacity to any managerial or supervisory position, the employee shall
automatically be disqualified or removed from the bargaining unit.
Section 4.Notice. The CORPORATION shall furnish the UNION with a complete list of
regular rank and file employees quarterly and notify the UNION of personnel actions,
specifically of hiring and termination activities.

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.

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.

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, 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 CORPORATIONupon
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
CHECK-OFF/AGENCY FEES

Section 1. Check-off. The CORPORATION shall, upon submission of a Board

Resolution in accordance with the Union’s Constitution and By-laws, make payroll
deduction of regular union dues, fees and assessment from the salary of its members.

Section 2. Agency fee. The CORPORATION shall likewise make payroll deductions of
an amount equivalent to union fees and fees paid by UNION members, from the salary
of non-UNION members who are availing of the benefits contained in the CBA. These
deductions shall be effected without need of the individual written authorities from the
concerned employees.

Section 3. Turn-over. The CORPORATION shall turn over the collected dues to the
UNION within five (5) days after the end of each calendar month together with the list of
the names of employees from whom such dues were collected.

Section 4. Unauthorized deductions. No deductions, other than those specified

above, shall be made from the salaries and wages of the employees without their written
individual authorization.

ARTICLE IV
EMPLOYMENT RELATIONS AND JOB SECURITY

Section 1. Probation period. An employee hired by the CORPORATION shall be

required to undergo a probationary period of five (5) continuous calendar months. If,
upon completing the probationary period, the employee is retained, he shall
automatically be granted a permanent status. The probationary period may be
shortened at the discretion of the CORPORATION.

Section 2. 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 3. 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 observingdue process.

Section 4.Employees’ Handbook. The CORPORATION shall furnish every employee

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

Section 5. 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 6. 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.

Section 7. Sale of Business. In case of sale of the business, the CORPORATION is

bound to ensure that the succeeding employer will respect this Agreement.
Section 8. 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.

ARTICLE V
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 VI
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 VII
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
1.2 Effective January 1, 2020 2.0% of Basic pay plus P1,000 to allpermanent
rank and file employees as of January 1, 2020
1.3 Effective January 1, 2021 2.0% of Basic pay plus P1,000 to allpermanent
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 on September 1, 2021. Said negotiations shall be completed on or
before November 1, 2021.

ARTICLE VIII
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 plusforty
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 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 IX
LEAVES

Section 1. Vacation Leave. Each permanent rank and file employee shall be entitled to
10 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 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

This shall cover only the first four deliveries.

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.

ARTICLE X
MEDICAL BENEFIT

Section 1. Medical Allowance. Each employee covered by this agreement shall be

entitled to a medical allowance of P2,000 annually.

Section 2.Health Fund. The CORPORATION shall contribute P10.00 monthly per
employee to the health fund of the UNION, to be given before the end of each month.

Section 3. Work Related Injuries. The CORPORATION shall shoulder all expenses for
treatment of any injury or illness directly or indirectly resulting from or related to the
performance of the employee’s work.

ARTICLE XI
RETIREMENT AND SEPARATION

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

1.1 At least 10 years of service – one-half month basic pay for every year of
service;
1.2 At least 15 years of service – one month basic pay for every year of service;
1.3 At least 20 years of service – one and a half month basic pay for every year of
service
1.4 This benefit cannot be enjoyed by any employee who is dismissed for cause.
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 XII
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, uniform allowance to be given every 1st week of January
each year of effectivity of this agreement as follows:

For 2019 P 3,000

For 2020 P 3,500
For 2021 P 4,000
For 2022 P 4,500
For 2023 P 5, 000

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

Section 3. Mid-year Bonus.The CORPORATION shall grant every permanent rank and
file employee a Mid-year bonus equivalent to one month basic pay, pro-rated from the
date of permanency to the cut-off date of May 31 of each year.

Section 4. Christmas Bonus. The CORPORATION shall grant every permanent rank
and file employee a Christmas bonus equivalent to one month basic pay, pro-rated from
the date of permanency to the cut-off date of November 31 of each year.

Section 5. 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 6. 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 XIII
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 XIV
DURATION OF AGREEMENT

Section 1. Duration. This Agreement shall be effective for a period of five (5) years
from January 1, 2019 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, 2021.

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.

IN WITNESS WHEREOF, the CORPORATION and the UNION, through their respective
representatives, have caused these presents to be signed this 7th day of March, 2018 at
Cebu City, Philippines.

SIGNED BY:

JUMEGA SARDINES, INC.

BY:

JUMEGA SARDINES EMPLOYEES

UNION (JSU)
BY: