PROPOSED COLLECTIVE BARGAINING AGREEMENT

2013-2017

KNOW ALL MEN BY THESE PRESENTS:

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

The LEYTE COMMERCIAL CENTER, INC., a corporation duly organized under Philippine law with
principal office at Tacloban City, represented herein by its General Manager, Luzell Ferrer and Assistant
General Manager ___, herein referred to as the CORPORATION.

-and-

The LEYTE COMMERCIAL CENTER EMPLOYEES UNION (LCCEU), a legitimate labor organization
duly registered with the Department of Labor and Employment, with office address at 3F DVOREF Tower,
Calanipawan Road, Tacloban City, herein represented b y LCC EU President Marites Limbauan and Vice-
President Roy Kantuna, 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;

W HEREAS , 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.

W H E R E A S , 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 b y the settlement of issues respecting
terms a n d conditions of em pl o ym e nt a n d b y providing m et hod s for the fair, peaceful adjustm ent o f
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 permanent 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 C O R P O R A T IO N bel ow 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
m a n a g e m e n t polici es a nd/ or t o hire, transfer, susp e nd , lay-off, recall, di s charge, as s i gn o r
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 merel y 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 w h om a permanent status is expressly conferred
including those w h o have been em pl o ye e s of the C O R P O R A T I O N for a period of at least 6
months, engaged in work or exe rcising 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 o f personnel actions, specifically of hiring and term ination
activities.

ARTICLE II
UNION SECURITY

Section 1. Present Regular Employee. All regular rank and file employees within the bargaining unit who
are m e m b e r s of the U N I O N as of t he dat e of t he si gni n g of t he a gr e e m e n t m u s t , as a condi t i on o f
continued em pl o ym e nt b y the C O R P O R A T I O N , maintain their m em bers hi p in good standing in the
UNION for the duration of this Agreement. All permanent rank and file employees belonging to another
UN IO N 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. Newl y hired permanent rank and file employees and newly
regul arized r ank a n d file e m pl o ye e s m ust , as a conditi on of e m p l o ym e n t , b e c o m e m e m b e r s o f the
UNION.

Section 3. Dismissal for violation of union security. A permanent rank and file employee, who during the
effectivit y o f this A g r e e m e n t , resi gns f r o m t he U N I O N , fails t o p a y fees d u e t o the U N I O N for 3
consecutive months, joins another labor union or refuses to join the U N IO N (save for those exempted
from the requirement) or violates the UN ION ’s Constitution and B y -Laws, shall be dismissed b y 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 b y the C O R P O R A T IO N , acting pursuant to the dem and of the U N IO N
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 a n d B y-laws, m a k e 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 w hom
such dues were collected.

Section 4. Unauthorized deductions. N o deductions, other than those specified above, shall be m ade
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
probati onar y pe ri od of five (5) cont i nuou s cal endar m o nt h s. If, u p o n com pl et i n g t he probati onar y
period, the em pl o ye e is retained, he shall automaticall y b e granted a p erm an ent status. T h e
probationary period may be shortened at the discretion of t he 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 C OR P OR AT IO N 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 4. Employee s’ Handbook. The CORPORATION shall furnish every employee with a copy of the
Employees’ Handbook, containing the code of ethics, rules and company policies, which the 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 r ank and file employees covered by the CBA.

Section 7. Sale of Business. In case of sale of the business, the C ORPORATION 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 recomm ended by an authorized officer and approved according to
C O R P O R A T IO N 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 perform ance appraisal b y the superior officer of the
employee, based on a standard and system agre ed 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 m a y take u p 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 pre sentation of grievance.

Section 2. Arbitration. Should the first step fail, the grievance m a y be referred to an Arbitrator to be
chosen by both the CORP OR ATION 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 1,2013
1.2 Effective January 1, 2014
1.3 Effective January 1, 2015
2.5% of Basic pay plus P1,000 to all permanent rank and file
employees as of January 1, 2013
2.0% of Basic pay plus P1,000 to all permanent rank and file
employees as of January 1, 2014
2.0% of Basic pay plus P1,000 to all permanent rank and file
employees as of January 1, 2015

The C OR P OR AT IO N and the UN IO N shall deliberate upon the increase for the years 2016 and
2017 on September 1, 2015. Said negotiations shall be completed on or before November 1, 2015.

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 COR P O R A T IO N 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’s shift 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. Overt i me pay. W o r k pe rform ed b e yo n d the designated shift shall b e paid a n additional
compensation equivalent to the employee’s regular wage plus twenty-five percent (25%) thereof.

3.1 W o r k p e r f o r m e d b e yo n d t h e d esi gn a t ed shift o n a hol i d a y o r rest d a y shall b e p ai d a n

additional compensation equivalent to the rate on a holiday or rest day p lus 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 p lus 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 perform ed o n a regular holiday (for his designated shift), the em pl o yee shall b e
com pensat ed t wi ce his regular daily w a g e plus 1 0 % of such dail y wage. If s uch holiday falls o n a
scheduled rest day, the emplo yee shall be compensated with twice his regular daily wa g e plus 5 5 %
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 ye ar of the effectivity of this agreement.

T h e vacat ion l eav e shall b e filed at least 5 d a ys before t he desi red d a y o f leave, s ubject t o
approval of the CORPORATION. When the exigencies of the business so requires, the CORPORATION can
r e s c h e d u l e t h e v a c a t i o n l e a v e w i t h i n t h e ye a r , w i t h t he c o n s e n t o f t h e e m p l o ye e . O t h e r w i s e , t h e
C OR P OR A T IO N 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.

Unu s ed sick leaves m a y be accum ul at ed a n d carried over to the succeedi ng years, provi ded
however that the m axi mum sick leave with pay which an employee m a y 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 e nd 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
em pl oyee covered b y this agreement. If the birthday falls on a non -working day, the em pl o ye e m a y
choose to be on leave the preceding date or any working day o f 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 PR O, leave with full pay for the purpose of U N IO N
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 o f 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 o f 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 em ployee 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 C ORPORATION.
 ARTICLE XII
OTHER EMPLOYEE BENEFITS

Section 1. Rice Allowance. T h e C O R P O R A T I O N agrees to grant to each employe e covered b y 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 1 st week of January each year of effectivity of this agreement
as follows:

For 2013 P 3,000

For 2014 P 3,500
For 2015 P 4,000
For 2016 P 4,500
For 2017 P 5, 000

T h e U N I O N is grant ed t he right to choose the uni form desi gn for each year, w hi ch shall b e
effected and implemented on the 1 st 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. 13 th Mo n t h Pay. 13 th m ont h pa y shall be given to the perm anent 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
b y t he e m p l o ye e s bu t are n ot expressl y p ro vi d ed for in this A g r e e m e n t shall b e m ai nt ai ned b y 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, o r
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 l aw 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, 2013
insofar as the representation aspect is concerned. All other provisions of this A gre e m en t shall b e 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 intent to 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 c aused t hese presents to b e si gned this _ _ _ _ __ _ d a y of __ ___ ___ __ , 2 0 1 2 at
____________________, Philippines.

SIGNED BY:

LEYTE COMMERCIAL CENTER, INC. LEYTE COMMERCIAL CENTER EMPLOYEES

UNION

BY: BY: