COLLECTIVE BARGAINING AGREEMENT by alicejenny

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									                      COLLECTIVE BARGAINING AGREEMENT


      This COLLECTIVE BARGAINING AGREEMENT (the “Agreement”) entered into by and
between:

       MEAD JOHNSON NUTRITION (PHILIPPINES), INC., a domestic corporation duly
organized and existing in accordance with the laws of the Philippines, its successors and
assigns, represented by Paul A. Richards, President and General Manager, with principal
office at 2309 Don Chino Roces Avenue, Makati City, hereinafter referred to as the
“Company”;

                                           and

       MALAYANG SAMAHAN NG MGA MANGGAGAWA SA MEAD JOHNSON
NUTRITION – (DRUG FOOD AND ALLIED WORKERS FEDERATION) DFA, a labor
organization duly registered with the Department of Labor, its Officers and Directors,
hereinafter referred to as the “Union”, and on behalf of the employees covered by this
Agreement:

                                   WITNESSETH, That

       WHEREAS, the Union has shown to the satisfaction of the Company that it
represents the majority of the employees and workers within the appropriate bargaining
units defined in Article II, Section 1 of this Agreement;

        WHEREAS, it is the general purpose and intent of both the Company and the Union
to promote, realize and enhance peaceful, harmonious and stable industrial and economic
relations between them by establishing a basis of agreement concerning salaries or wages,
hours of work and working conditions, by providing means for the amicable resolution of
disputes and grievances, and through these, achieve uninterrupted business operations
and assure cooperation between the Company and the employees.

       The Company and the Union mutually agree that they shall exercise utmost good
faith and goodwill in their relations at all levels to ensure the achievement of these
purposes.

        NOW, THEREFORE, for and in consideration of the premises, covenants,
stipulations and conditions herein contained, the parties hereto have agreed, the one with
the other, as follows:

                                       ARTICLE I
                                     RECOGNITION

       Section 1. The Company recognizes the Union as the sole and exclusive bargaining
agent of employees covered by the appropriate bargaining units herein agreed, composed
of permanent and regular rank-and-file employees, whose job titles or positions are
enumerated in Article II, Section 1 of this Agreement.

       The term "employees" shall not include employees who, by reason of the status of
their employment or nature of their positions, are excluded either because they have no
2011-2013 Collective Bargaining Agreement                                      page 2



common or mutual interest with the employees covered by the herein agreed appropriate
bargaining units or the law or industrial practice requires their exclusion.

                                              ARTICLE II
                                   SCOPE OF THE BARGAINING UNITS

        Section 1. The Company and the Union mutually agree that for the purpose of
collective bargaining, employees with common or mutual interest should be grouped into
appropriate bargaining units; accordingly, the Company and the Union hereby agree that
there will be two (2) appropriate bargaining units namely:

       A. Bargaining Unit I: Field-based Personnel composed of regular and permanent
rank-and-file employees whose job titles are as follows:
             Territory Manager
             Key Account Manager
             Distributor Specialist
             Sales Force Effectiveness Clerk
             Promotional Helper
             Sample Control Clerk
             Encoder

      B. Bargaining Unit II: Non-field-based Personnel composed of all regular and
permanent rank-and-file employees whose job titles are as follows:
      1. Production
             Utilityman
             Production Worker
             Team/Group Leader
             Operations Technician I (all jobs in this category under the SEP)
             Operations Technician II (all jobs in this category under the SEP)
             Operations Technician III (all jobs in this category under the SEP)
             Asst. Production Technician
             Production Technician
             Machine Operator
             Leadman
             Production Clerk
      2. Engineering
             Engineering Clerk
             Maintenance Storekeeper
             Maintenance Carpenter
             Electrician
             Jr. Plant Mechanic
             Sr. Plant Mechanic
             Plant Maintenance Technician
             Equipment Tender
             Draftsman
             Maintenance Helper
             Operations Technician I (all jobs in this category under the SEP)
             Operations Technician II (all jobs in this category under the SEP)
             Operations Technician III (all jobs in this category under the SEP)
      3. Quality Assurance/Quality Control
             Laboratory Helper
             QC Jr. Analyst
             QC Microbiologist
2011-2013 Collective Bargaining Agreement                                       page 3



                 QA Inspector
                 Operations Technician I (all jobs in this category under the SEP)
                 Operations Technician II (all jobs in this category under the SEP)
                 Operations Technician III (all jobs in this category under the SEP)
                 Laboratory Officer 1
         4. Warehouse/PSG
                 Warehouseman
                 Receiving Clerk
                 Forklift Operator
                 Driver
                 Delivery Helper
                 Section-in-Charge
                 Dispensing Aide
                 Operations Technician
                 Team Leader/Process Leader
                 Warehouse Helper
                 Operations Technician I (all jobs in this category under the SEP)
                 Operations Technician II (all jobs in this category under the SEP)
                 Operations Technician III (all jobs in this category under the SEP)
                 Inventory Management Officer
         5. Finance, Human Resources, Purchasing, Production Control & General
         Administration
                 Accounting/Finance Clerk
                 Payroll Clerk
                 Timekeeper
                 Messenger
                 Buyer
                 Inventory Control Clerk
                 Data Encoder
                 Billing Clerk
                 Administrative Clerk
                 Driver
                 Operations Methods Clerk
         6. Information Management
              Computer Operator/Librarian
              Database Assistant
              Programmer
              Data Control Clerk

       Section 2. The following employees from both the Field and Non-field units are
excluded from the scope of the bargaining units:
            Officers, Directors, and Executives
            Managers, District Managers, Supervisors, Assistant Supervisors, Foremen
             and Foreladies
            Members of the Management Staff:
                  o Secretary, Sr. Secretary, Executive Secretary, and Secretary to the
                      General Manager
                  o Staff Accountant
                  o General Accountant
                  o Cashier
                  o Company Nurse
                  o Personnel Assistant
                  o Administrative Assistant
2011-2013 Collective Bargaining Agreement                           page 4



                       o    Procurement Officer
                       o    Field Trainer
                       o    Time Study/Industrial Engineer
                       o    Marketing Analyst
                       o    Sr. QC Analyst
                       o    Sr. QC Inspector
                       o    Production Control Inspector
                       o    PPIC Analyst
                       o    Import/Export Coordinator
                       o    Dispensing Pharmacist
                       o    Assistant Dispensing Pharmacist
                       o    Technical Services Assistant
                       o    Nightwatchman/Nightwatchmen Inspector
                       o    Project Coordinator
                       o    Nutritionist
                       o    Telephone Operator
                       o    Customer Focus Officer
                       o    Customer Focus Associate
                       o    Training Specialist
                       o    Sales Support Services Assistant
                       o    Brand Assistant
                       o    Systems Analyst
                       o    Assistant Production Coordinator
                       o    Account Officer
                       o    Administrative Assistant
                       o    Business Analyst
                       o    Business Information Analyst
                       o    Business Process Systems Analyst
                       o    Category Management Specialist
                       o    Clinical Site Monitor
                       o    CME Projects Officer
                       o    Cost Analyst
                       o    CRM Program Specialist
                       o    CRM Training & Quality Officer
                       o    Distribution Business Systems Officer
                       o    Distribution Analyst
                       o    Enterprise Systems Developer
                       o    Field Training Specialist
                       o    Financial Analyst
                       o    Finite Scheduler
                       o    Inbound Escalation Officer
                       o    Jr. Product Technology Officer
                       o    Medical Sales Coordinator
                       o    Medical Sales Information Officer
                       o    Merchandising Officer
                       o    MRP Supply Planner
                       o    Operator & Helpdesk Officer
                       o    Planning Assistant
                       o    Plant Quality Officer
                       o    R&D Product Development Scientist
                       o    Product Technologist
                       o    Production Services Officer
                       o    Project Coordinator
2011-2013 Collective Bargaining Agreement                                            page 5



                     o Purchasing Officer
                     o QA Officer
                     o Quality Technical Assistant
                     o R&D Product Development Assistant
                     o Sr. Planning Officer
                     o Sr. Site Monitor
                     o Supply Planner
                     o Technical Administrative Assistant
                     o Technical Support Officer
                Casual, contractual or temporary employees
                Probationary employees
                Trainees

      Section 3. All employees who are included in the scope of the bargaining units as
above defined shall, upon promotion or transfer to a position outside of the scope of any
of the bargaining units, be automatically disqualified from Union membership and
removed from the scope of the appropriate bargaining units, provided that notice of their
promotion shall be given to the Union within ten (10) days from the date of promotion.

       Section 4. The Company shall not, during the duration of this Agreement,
upgrade/create positions that will result into the exclusion of positions from the scope of
the bargaining unit without notice and information to the Union. Such notice shall be
served at least seven (7) days prior to implementation of the decision to upgrade/create
positions. Within the 7 day notice period, the company and the union shall hold a meeting
to discuss the subject newly upgraded or created position as defined above using the
agreed upon classification process. Pending the decision to implement the newly
upgraded or created position, the company shall continue deducting union dues from the
concerned employee and allow him/her to participate in union activities.

       Section 5. Should the Company decide to contract out a significant item of work
where such contracting out will affect members of the Union, the Company shall notify
the Union, in writing, of such decision at least seven (7) days prior to effective date.

                                              ARTICLE III
                                            UNION SECURITY

         Section 1. All present employees covered by this Agreement, who are now
members of the Union must, as a condition of continued employment, remain members
of the Union in good standing during the life of this Agreement, subject only to a freedom
period that shall occur 60-days prior to the expiry of the representation status stipulated
in this agreement, more specifically on November 01, 2013.

       Section 2. Employees to be hired after the date hereof whose positions are
covered by this Agreement must, as a condition of continued employment, join the Union
within 30 days after date of regularization in the Company and remain members of the
Union for the duration of the agreed effectivity of the representation status, subject to the
freedom period stipulated under Section 1 hereof.

       Section 3. All employees covered by this Article shall file with the Company within
15 days from regularization the Check-Off Authorization mentioned in Section 16 hereof.

       Section 4. The Company shall furnish the Union the following information on
newly-hired rank-and-file employees:
2011-2013 Collective Bargaining Agreement                                          page 6



         a.   Name
         b.   Position
         c.   Dates of Hiring and potential regularization
         d.   Place of initial and subsequent assignments, if field personnel
         e.   Home address

       The Company shall also furnish the Union the names of Union members who are
retrenched, resigned or retired.

       Section 5. Subject to the conditions of Section 1 hereof, the Company may
terminate the services of an employee when so requested by the Union, and only for the
following reasons:
       a. Resignation by the employee from the Union for any cause except as provided
           in Section 1 hereof; or
       b. Expulsion of the employee from the Union for non-payment of union dues;
       c. Joining, forming or working for another labor organization;
       d. Violation of the Union's Constitution and By-Laws.

        Section 6. The Company reserves the right to inquire into the circumstances
surrounding the request of the Union to terminate the services of an employee in
accordance with Article III, Section 5 of this Agreement. Provided that termination under
Article III, Section 5 shall be considered for cause after the Company has investigated and
convinced itself that the employee concerned was afforded due process of law.

       Section 7. The Company and the Union shall jointly comply with all laws, rules and
regulations required to implement the provisions of Article III, Sections 1 to 5 of this
Agreement unless authorized by the appropriate governmental agency, where such prior
authorization is required.

        Section 8. Whenever there is a reduction in the working force within any
employee classification due to chronic reduction in demand, continuing losses in
operation, frequent unavailability of materials and government controls, or for any
legitimate business reason, casual and probationary employees shall be laid off first. If
there is a need for further reduction, the factors to be considered in determining which
employees should be laid off shall be as follows:
        a. Ability to perform work satisfactorily;
        b. Physical and educational qualification to perform the work;
        c. Seniority in the Company.

      However, only where factors (a) and (b) are relatively equal shall factor (c) govern
except in cases of termination of employment on the ground of automation or
redundancy, in which case, seniority shall be given a heavy weight or consideration.

     For purposes of flexibility, the process of implementation shall be left to the
Company’s evaluation.

        Section 9. In case of plant shutdown brought about by plant expansion and/or
installation of labor-saving device, the Company shall look after the welfare of the
affected employees and where possible, utilize the services of those employees in other
areas of work or operations, giving preferential consideration to those who have no more
vacation leave to their credit.
2011-2013 Collective Bargaining Agreement                                            page 7



        Section 10. In the spirit of recognizing the contribution of employees who have
died, retired, or were disabled, the Company shall give preferential consideration to the
spouse, child, brother or sister of a deceased, retired or disabled employee in filling up a
vacancy that will be filled through hiring from outside the Company, provided such kin
meets the minimum requirements for the position and passes the screening procedures
and evaluation. For this purpose, appropriate notice of vacancy shall be given to the family
of the employee copy furnished the Union.

       In cases involving a retiring employee, his nearest-of-kin replacement may be hired
by the Company six (6) months prior to the employee's retirement, provided there is a
need to fill up from outside the position to be vacated or there is another existing vacancy
that need to be filled up from the outside. In both instances, the nearest-of-kin must
meet the minimum requirements for the position and pass the screening and evaluation
procedures.

        Section 11. In case of termination of employment that may be effected by the
Company as a result of the installation of labor saving devices, automation, or
redundancy, or in cases of termination of employment due to retrenchment to prevent
losses, closure or cessation of business, the Company shall pay the employee a severance
pay equivalent to at least 1.5 months pay for every year of service. Where the
retrenchment or closure of business is due to financial reverses or business losses, the
severance pay shall be equivalent to at least one month pay for every year of service. For
purposes of computing the severance benefit, a fraction of at least six (6) months of
service shall be considered one year. The SL/VL component of the separation pay shall be
treated in accordance with the current and existing guidelines of the BIR. Employees
retrenched under this Section shall continue to be covered by the Company's in-patient
medical program at Company's expense for a period of six (6) months from the date of
their retrenchment, excluding their dependents. They may opt to be covered for a longer
period of time (up to a maximum of ten (10) years) but any coverage in excess of six (6)
months shall be for the account of the employee, the pre-payment for which shall be
deducted in advance from his retrenchment pay.

        Section 12. In case of termination of employment by reason of illness or disability
as allowed and authorized by law, the Company shall pay a severance pay equivalent to
1.5 months pay per year of service. As agreed upon by the parties, the Company may
effect a termination of employment by reason of illness under any or a combination of the
following circumstances:
        a. Recurring illness of long duration which will require lengthy absence of the
            employee.
        b. Disabling injuries with permanent or lasting effects, that will totally
            incapacitate or seriously impair the employees capacity to perform work in
            accordance with the standard set by the Company.
        c. Disease of contagious nature that will make worse the employee's condition or
            prejudice the health of other people when the employee is allowed to continue
            working.
        d. In case of PTB duly certified by the Company Physician whose determination
            shall be final and incontestable, subject to the applicable provisions of Article
            XII.

        Except as provided for in the following paragraph, employees terminated under
this Section shall continue to receive the annual Christmas food package for employees for
a maximum of five (5) years from the date of their termination. They shall also be allowed
2011-2013 Collective Bargaining Agreement                                            page 8



the EDO privilege in buying Company products for their own personal use for as long as
the EDO privilege is granted by the Company to its employees.

        No benefits under this section shall accrue to the terminated employee if the
disease, illness or injury which incapacitated him/her was contracted or brought about as
a result of willful act, negligence, deliberate exposure to exceptional danger (except in an
attempt to save human life or Company property) or from the employee's own criminal,
immoral act or vicious habits.

       Section 13. Should the Company transfer its plant or office in the future, the
Company shall respect its employment responsibilities to the concerned employees, with
due regard to applicable laws.

        Section 14. The Company shall deduct from the employee's monthly salary and
remit to the Union and/or officer duly designated by the Executive Board of the Union all
membership dues and other assessments from the employees as authorized by the
individual check-off authorization submitted by the employee. All deductions required by
law and other obligations of the employee to the Company shall have priority over
deductions of Union dues and other assessments. The Company agrees to transmit Union
deductions for Union dues, fines and other assessments within one (1) week following the
week of deductions but shall not be held liable to the Union or to its members for its
inadvertent failure to deduct dues and other assessments.

       Section 15. The Union, its officers and members shall answer for any and all claims
which may be brought or instituted against the Company by an employee for any amount
deducted from his salaries or wages as herein provided after the sum shall have been
turned over to the Union.

       Section 16. The Check-Off Authorization shall more or less be of the following
format:

                                CHECK-OFF AUTHORIZATION
         The Director, Human Resources
         Mead Johnson Nutrition (Philippines), Inc.
         2309 Don Chino Roces Avenue
         Makati City
         Sir:
                I hereby notify the Company of my membership with the Malayang
         Samahan ng mga Manggagawa sa Mead Johnson Nutrition – DFA and
         authorize your Payroll Section to deduct from my monthly salary the
         following Union dues and assessments and remit the same to Malayang
         Samahan ng mga Manggagawa sa Mead Johnson Nutrition – DFA:
                1. P6.00 – Union Education and Research Fund
                2. 1% of my monthly basic salary as Union dues

                I further agree to abide by any assessment or fine that may be
         imposed in the future by the Union Board as expressed in Board resolution
         approved in general membership meeting and ratified by the majority of
         the general membership, copy of which is submitted to the Company.

                 I have carefully read the Union Constitution and By-Laws and I am
         fully aware that I have the duty to attend the monthly Union meeting and
         Union Educational Seminar and that the Executive Board has the right to
2011-2013 Collective Bargaining Agreement                                                 page 9



         deprive me of my Union membership in good standing for failure to attend
         Union meetings, Union educational seminar and for other violations of the
         Union Constitution and By-Laws with the consequent withdrawal of all
         Union benefits.

                 I have read and fully understood Article III, Sections 1 to 5 on UNION
         SECURITY of the Collective Bargaining Agreement between Mead Johnson
         Nutrition (Philippines), Inc. and the Malayang Samahan ng mga
         Manggagawa sa Mead Johnson Nutrition – DFA and I hereby agree that the
         Company shall terminate my employment upon request of the UNION for
         non-payment of UNION dues, fines and other assessments.

                 I hereby relieve the Company from any and all liabilities for
         terminating my employment pursuant to Article III, Sections 1 to 5 of the
         Collective Bargaining Agreement.
                 I further agree that this check-off shall retroact on [date].

                                               _________________________
                                                Signature over printed name
                                                  ____________________
                                                    Department-Position

       Section 17. Pursuant to Article 248 (e) of the Labor Code, the Company shall
check-off from non-union members, if any, as referred to under Article III, Section 2 of
this Agreement, within the agreed collective bargaining units the same reasonable fees
normally paid by the Union members without need for individual check-off authorization.

        Section 18. The Company shall provide a slot/line for the Union in the employee's
clearance form. It is, however, understood that the Company shall have nothing to do
with the collection or settlement of any accountability an employee may have with the
Union and the failure of the employee to settle or pay his Union accountability shall not
bar or prevent the Company from issuing any clearance.

                                            ARTICLE IV
                                     MANAGEMENT PREROGATIVES

        Section 1. The Union recognizes the exclusive right of the Company to supervise,
manage and conduct its business operations including, but not limited to, the direction of
the working force; hiring, rehiring; work and/or area assignment; transfer, promotion,
demotion, laying off; recalling, suspension, dismissal, discharge and disciplining of
employees; the determination of the number of employees; determination of incentives,
bonuses, salary and salary ranges in any department; determination of work shift; job
analysis, job evaluation, job classification and merit ratings; the choice of the method of
performing work or doing business; the right to make job assignments; to assign, increase
and decrease duties of any position; the determination of the number and enforcement of
working schedules, including the right to place the Company on a continuous operation
schedule; the establishment and use of personnel testing, selection and placement
procedures; the establishment, implementation and revisions of reasonable and just
Company policies, rules and regulations, including safety rules; work to be
subcontracted/outsourced or the activities to be conducted in the Company; the
determination of the required jobs within the Company and the determination of
reasonable levels of productivity and standards of efficiency. It is further understood and
agreed that all rights, powers or authority possessed by the Company prior to the signing
2011-2013 Collective Bargaining Agreement                                           page 10



of the agreement shall be retained by the Company, except insofar as such rights, powers
or authority are herein expressly modified by the terms of this agreement and of the
provisions of the Labor Code.

         Section 2. In the exercise of its management functions, the Company shall not use
its exclusive right for the purpose of discriminating against any employee; provided
further that any employee who is aggrieved of the decision of the Company in the exercise
of its management prerogatives may avail himself of the grievance machinery as provided
in this Agreement.

                                                    ARTICLE V
                                            UNION RESPONSIBILITY

        Section 1. The Union agrees that it shall cooperate with the Company and support
all the latter’s efforts to secure a full day's work from all employees whom the Union
represents and that it will explicitly not encourage, initiate, support or ratify any and all
forms of absenteeism and other practices which curtail production, and will support the
Company in all its efforts to eliminate waste and efficiency to improve the quality of work,
to prevent accidents and to promote goodwill between the Company and the employees.

       Section 2. The Union expressly recognizes that high level of wages can be achieved
only by maintaining a high level of productivity and profitability. The Union and its
members will cooperate in attaining such a high level of productivity and profitability as is
consistent with the health and welfare of the employees. The Union and its members will
seek to assist in the utilization of improved methods and machinery through the usual
Company corporate structure.

         Section 3. The Union, cognizant of the confidence indispensable between the
Company and its employees, agrees to hold as confidential and proprietary any and all
official and business matters acquired by its members during their employment.

        Section 4. The Union agrees that its members shall not unreasonably absent
themselves in concert or in groups, thereby preventing normal production. The Union
further agrees that its members will work at any and all times where the Company
reasonably assigns them, and that their allegiance to their jobs/positions and obligations
to the Company on account of their employment shall take priority over all ordinary
obligations.

         Section 5. The Union agrees that it will not publish or circulate any false or
misleading remarks, innuendoes, half truths or rumors about the Company, its products,
its officers or other personnel.

                                       ARTICLE VI
              SALARIES, WAGES, RICE SUBSIDY AND INCENTIVE COMPENSATION

       Section 1. The Company shall grant a general salary or wage increase to all
employees within the bargaining units on the dates and amounts specified following the
Pay-for-Performance scheme, thus:

                                                                            For Previous
Period Covered              Lump Sum                Fixed Pay      P4P         Year’s
                         (in lieu of salary                                 Performance
                              increase)                                     (Payout Day)
2011-2013 Collective Bargaining Agreement                                                page 11




 Year 1: 2011           P120,000                 Not             Not             January 2011
                        + P20,000 for          Applicable      Applicable
                         those who exceed
                         2010 SGOA and
                         Medical Sales
                         metrics
 Year 2: 2012             Not Applicable         P3,000          P600 @       January 1, 2012
(Jan. 1 – Dec. 31)                                                 Fully
                                                                Performing
 Year 3: 2013             Not Applicable         P3,100          P600 @       January 1, 2013
(Jan. 1 – Dec. 31)                                                 Fully
                                                                Performing

        In the event of any legislated wage increase, the Company and the Union shall first
discuss and review its applicability and/or implementation.

       Section 2. In determining variable pay, the following parameters shall be
observed:

         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:

      Metric                    2012               Total             2013                  Total
Total Company                   P120        (Co. + Ind./Team)        P120           (Co. + Ind./Team)
Sales
Individual/Team            BP - P180              P300             BP - P180              P300
Performance                 FP - P480             P600              FP - P480             P600
                         Exceeds - P600           P720           Exceeds - P600           P720

              Performance                       Medical Sales           SGOA (Supply Chain)
      Base Performance (BP)                     95% - 99.99%               95% - 96.99%
      Fully Performing (FP)                    100% - 105.99%              97% - 98.99%
      Exceeds                                   106% and up                 99% and up

Examples: (to compute for P4P)

         a. If Company meets Total Company Sales target (P120) and Individual/Team
         Performance meets Base Performance (P180), P4P is P300.

       b. If Company does not meet Total Sales target (P0) but Individual/Team
Performance is Fully Performing (P480), P4P is P480.


        Section 3.    The 2011 Total Company Sales and SGOA (for Plant/Non-field) and
the 2011 Total Company Sales and Individual Performance (for Medical Sales) shall be the
basis for determining the variable pay to be given effective 1 January 2012. Similarly, the
2012 Total Company Sales and SGOA (for Plant/Non-field) as well as the 2012 Total
Company Sales and Individual Performance (for Medical Sales) shall be the basis for
determining the salary increases to be given effective 1 January 2013.
2011-2013 Collective Bargaining Agreement                                         page 12




       Section 4. The Company shall also provide all covered employees a monthly rice
subsidy to be paid as follows:
               P1,760 effective January 01, 2011
               P1,800 effective January 01, 2012
               P1,860 effective January 01, 2013

        Payment shall be made via the employees’ payroll. The Company shall shoulder
the tax, if any, that may be imposed upon such subsidy.

        Section 5. Unless otherwise exempted by laws, decrees, or orders to comply, or
when the Company suffers business losses, the Company shall implement laws, decrees or
orders that may be issued by the government on COLA or other form of allowances
without regard to the salary ceiling that may be prescribed by such laws, decrees or
orders.

        Section 6. In determining the daily rate of an employee, the Company shall
continue to use 250 days as divisor, e.g.,
                                    Monthly Salary x 12
                                           250 days
with the confirmation and acknowledgement on the part of the Union that Holiday Pay is
included in the monthly salary of the employees, irrespective of the number of divisor that
now (250 days) or hereinafter may be devised and adopted by the Company for the
welfare and betterment of the employees. The Company and the Union further confirm
and acknowledge that the adoption of a certain divisor is done merely to establish a factor
for computation of certain benefits and/or deduction and such divisor has no bearing or
significance in the determination of whether or not certain payment, like Holiday Pay, is
included in the monthly pay of employees.

       Section 7. The regularization rate of an employee who is regularized subsequent
to any CBA wage adjustment given in 2012 and 2013 shall be based on the average fixed
CBA increase for two years (2012 and 2013), pro-rated to said employee’s date of hire
provided that such increase shall in no case be less than the equivalent of 33.33% of the
average fixed CBA increase for 2 years. For 2011, the regularization pay shall be based on
the lump sum of P120,000 pro-rated based on the employee’s regularization date,
provided that such amount shall in no case be less than the equivalent of 33.33% of
P120,000 or P40,000.

        Section 8. The Company shall continue to pay all sales and field personnel an
incentive bonus computed on the basis of performance. The Company commits that the
said program shall be periodically reviewed for the purpose of upgrading it.

       Section 9. The Company shall continue the implementation of the Production
Incentive Program for non-field personnel to recognize and reward exemplary
performance and individual contribution to the successful attainment of the Company's
objectives and goals. The Company commits to review said program periodically.

        Section 10. The spirit and intent of the scheme mentioned in Sections 8 and 9
hereof are to encourage and reward not only outstanding but also exemplary individual or
group performance and productivity which have undeniably salutary effects on the
attainment of the Company's goals and objectives. These programs are not designed for
employees whose performance barely meets the pre-established minimum acceptable
levels.
2011-2013 Collective Bargaining Agreement                                           page 13




                               ARTICLE VII
       TH
    13 MONTH PAY, CHRISTMAS BONUS (14TH MONTH) AND MID-YEAR BONUS (15TH
                                MONTH)

        Section 1. The Company shall, in addition to the 13th month pay, grant Christmas
Bonus or 14th month pay of at least one month’s basic pay to all covered employees; such
payment shall be made in the month of December every year. The 13 th and 14th months
pay shall be paid on a pro-rata basis in the case of regular employees whose services are
less than one year.

      Section 2. The Company shall also pay a Mid-Year bonus or 15th month pay of one
month’s basic pay to all covered employees; such payment shall be made in the month of
May every year.

        Section 3. In case of separation from service, the Company shall pay on a pro-rata
basis the following benefits
        a. 13th month pay - in all cases of separation from the Company after at least one
            month of service.
        b. 14th month pay - in case of separation from the Company brought about by
            resignation, death, disability, retrenchment or retirement, provided that in
            case of resignation the employee must have served the Company for at least
            one(1) year.
        c. Mid-year bonus or 15th month pay - in case of resignation from the Company
            after at least one year of service, provided that the divisor 12 shall be used in
            computing the proportionate amount.

       Section 4. In keeping with the spirit of Christmas, where the Company would like
to ensure that the employees’ families will have a meaningful noche buena celebration,
the Company will grant a Christmas package valued as follows (inclusive of VAT): P4,400
for 2011; P4,600 for 2012; and P4,800 for 2013.

                                 ARTICLE VIII
OVERTIME, DAY-OFF, REST DAY, REGULAR/SPECIAL HOLIDAY AND NIGHT DIFFERENTIAL
                                    PAY

       Section 1. For purpose of this Article and subject to the provisions of ARTICLE 82 of
the Labor Code, the following terms are defined herein below:
       a. Regular Work Days - Five (5) consecutive working days from Monday to Friday
           at eight (8) hours each day.
       b. Day-Off - The sixth day, which is Saturday.
       c. Rest day - The seventh day, which is Sunday.
       d. "Straight Time Basis" - shall mean hour actually worked which may be more or
           less than eight (8) hours.
       e. Night-Time - from six o'clock in the evening to six in the morning.
       f. Overtime - work performed in excess of eight (8) hours on a regular work day
           or on a Regular or Special Public Holiday, or on a Scheduled Rest Day which
           may fall on a Regular or Special Holiday.

       Section 2. The Company shall pay additional compensation for overtime work and
work actually performed on a Day-Off, Rest Day, Holiday and Rest Days which coincide
with a holiday in accordance with the following formulas:
       A. Regular Day Overtime Compensation
2011-2013 Collective Bargaining Agreement                                          page 14



                    First eight (8) hours worked beyond the regular shift: regular basic
                      hourly rate plus 50% or 1.5
                    Next eight (8) hours: 1.5 plus 75% or 2.625
         B.   Day-Off Compensation
                    First eight (8) hours: regular basic hourly rate plus 50% 1.5
                    In excess of eight (8) hours: 1.5 plus 75% or 2.625
         C.   Special or Regular Holiday Compensation
                    First eight (8) hours: regular basic hourly rate plus 100% or 2.0
                    In excess of eight (8) hours: 2.0 plus 75% or 3.5
         D.    Compensation for Work Performed on Special or Regular Holiday which
               Coincide with the Employee’s Scheduled Day-Off or Rest Day
                    First eight (8) hours: regular basic hourly rate plus 130% or 2.3
                    In excess of eight (8) hours: 2.3 plus 125% or 5.175
         E.   Scheduled Rest Day Compensation
                    First eight (8) hours: regular basic hourly rate plus 100% or 2.0
                    In excess of eight (8) hours: 2.0 plus 125% or 4.5

      Section 3. The regular basic hourly rate for overtime compensation shall be
computed in accordance with the rules and regulations of the Department of Labor.

         Section 4. The Company shall pay a night differential pay to all covered employees,
thus:
             30% of the basic hourly rate for work performed from 6:00 p.m. to 10:00
              p.m.
             35% of the basic hourly rate from 10:01 p.m. to 6:00 a.m. the following day
irrespective as to whether the work is performed on a regular or special holiday and/or
scheduled rest day, provided that when the employee is on OT the basis of computing his
night differential pay shall be his basic plus OT hourly rate. Night differential pay shall
also be paid where a portion of an employee's work schedule extends to or falls within
anytime from 6:00 p.m. to 6:00 a.m. of the following day.


                                              ARTICLE IX
                                       DAYS AND HOURS OF WORK

       Section 1a. Subject to the provision of ARTICLE 82 of the Labor Code, the regular
days of work for all employees shall be five (5) days in a week from Monday to Friday.

       Section 1b. However, the Company may institute, after consulting with the
Union, a flexible workweek schedule when so demanded by the business and for better
employee work-life balance. The guidelines for this arrangement shall be discussed in the
LMC.

       Section 2. A regular working day shall consist of eight (8) hours. The fifteen (15)
minutes break time in the morning and the fifteen (15) minutes break time in the
afternoon shall form part of the working day. The regular meal time of one (1) hour shall
not be considered as part of the working day.

       Section 3. The Company may, at its sole discretion, schedule or reschedule the
days and hours of work, whenever necessary. For this purpose, the Company shall inform
in writing the affected employees at least seven (7) calendar days before the
implementation or effectivity of such change of work schedule.
2011-2013 Collective Bargaining Agreement                                           page 15



        Section 4. The Company may require all employees to work on their days off, rest
days and regular and special holidays and to perform overtime work on any day whenever
the need arises, provided that advance notice of at least forty-eight (48) hours is given and
subject to the payment of the additional compensation provided in Article VIII of this
Agreement. An employee who is required to work may be excused only for justifiable
reasons. Such justification must be submitted by the employee in writing at least twenty-
four (24) hours prior to the performance of the required work.

        Section 5. Plant employees who are required to extend work beyond their regular
eight (8) hour shift into the immediately succeeding shift shall be entitled to overtime pay.
However, no overtime pay shall be granted if a plant employee is required to work in a
shift that does not immediately follow his original shift. To illustrate:
                      Shift          Work Extension                  Treatment
                       3rd             1st (next day)                Overtime
                      2nd             3rd (same day)                 Overtime
                       1st           2nd (same day)                  Overtime
                       3rd            2nd (next day)                Change Shift
                      2nd           1st shift (next day)            Change Shift

                                               ARTICLE X
                                            VACATION LEAVE

       Section 1. All employees after one (1) year of continuous service counted from the
date of probationary employment shall be entitled to paid vacation leave of sixteen (16)
working days per year.

       Section 2. Employees with more than five (5) years of continuous service shall earn
and be entitled to the following vacation leave (working days) per year:
                      Years of Service              Vacation Leave
                           6 to 10                        17
                              11                          18
                              12                          19
                              13                          20
                              14                          21
                              15                          22
                           16 to 20                       23
                           21 to 25                       24
                        26 and above                      25

       Section 3. Vacation leave may be taken only after it is earned. Vacation leave has
to be taken during the year unless deferred to a later date (but not later than June of the
following year) subject to Section 7 hereof and as endorsed by the employee's Division
Manager and approved in writing by the HR Director and the General Manager.

       Section 4. The Company shall prepare a schedule of submitted vacation leave of all
employees. In making such schedule, the Company shall give priority to the preference of
the employee. When the preferred schedule of employees shall come in conflict with
operation, the employees shall accordingly adjust his schedule to the requirements of the
Company. In this connection, the employees shall submit their preferred schedule on or
before January 31st of each year, otherwise, if the employees shall fail to do so, then the
Company shall assign the dates for scheduled vacation. The Company may recall any
employee on vacation leave whenever his or her services are required. In such cases and
2011-2013 Collective Bargaining Agreement                                         page 16



subject to Section 7 hereof, the unused scheduled vacation leave shall be added to his
earned vacation leave and scheduled for use at other time.

       Section 5. No employee shall go on vacation leave without prior official approval by
his immediate supervisor.

       Section 6. Vacation Leave is not commutable and non-cumulative except as
provided in Sections 1, 2 and 4 of this Article. The money value of unused and unenjoyed
vacation leave shall be paid to the employee upon resignation or termination of
employment.

       Section 7. 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.

                                            ARTICLE XI
                                            SICK LEAVE

        Section 1. Subject to the Company’s policy on sick leave, all regular employees
shall be entitled to paid sick leave of sixteen (16) working days per year. Employees with
less than one (1) year of service shall be entitled to sick leave of 1.33 working days for
every month of service.

       Section 2. Employees with more than ten (10) years of continuous service shall
earn and be entitled to the following sick leave (working days) per year:
                      Years of Service                 Sick Leave
                             11                            17
                             12                            18
                             13                            19
                             14                            20
                             15                            21
                          16 to 24                         23
                       25 and above                        25

        Section 3. Employees must exert all and every reasonable and prudent effort to
inform their immediate supervisor or District Manager, Department Manager or Director,
Human Resources and other authorized persons as the case may be, of their illness on the
first day of such illness. The Company, through the Company Nurse and/or authorized
physician, or designated knowledgeable employee, may visit the employee to offer
medical and other needed assistance.

         Section 4. Employees assigned in Metro Manila areas shall avail of the services of
the Company retained physician. Where it is impossible for an employee to go to the
Company clinic for treatment, then he or his authorized representative may call the office
for house visitation or treatment. When no clinic personnel is available to respond to a
call for a house visitation and the employee is unable to consult an outside physician, his
or her sickness may be applied for sick leave without need of a medical certificate
provided the period of sickness does not exceed two (2) days.
2011-2013 Collective Bargaining Agreement                                           page 17




        Section 5. Sick Leaves can be availed of only in cases of actual illness or
recuperation or rest, as certified by a physician. Afflictions that do not require physician
consultation such as ordinary headache or simple indisposition are not grounds to take
paid sick leave. The Company reserves the right to seek the opinion and advice of its own
physician to verify medical finding of the attending physician of the sick employee. The
Union agrees that a Company designated physician may conduct medical examination or
inquiry as may be necessary to establish the fact of sickness.

       Section 6. Sick Leave shall be cumulative up to forty (40) working days provided
that after such accumulation, all subsequent sick leaves that may be earned by the
employee in excess of 40 days shall be converted into cash and paid to the employee at
the end of the year.

        Section 7. The cash equivalent of earned and accrued sick leave shall be paid to
the employee upon his resignation provided he has served the Company for at least one
(1) year.

       Section 8. In case an employee has consumed all his sick leave in any given year,
the employee shall be paid the difference between his salary and the SSS salary
reimbursement for the duration of any approved SSS leave provided that the employee
shall have been employed by the Company for at least five (5) years and shall have
exhausted all his accrued sick leave and vacation leave.

       Section 9. The Company shall develop a scheme of award for employees who,
during any given year, have not incurred any tardiness in reporting for work and have not
availed of any sick leave benefit.

                                         ARTICLE XII
                  P.T.B. LEAVE AND ASSISTANCE LEAVE FOR DREADED DISEASE

        Section 1. Any regular employee who contracts pulmonary tuberculosis (P.T.B.)
and who is certified by the Company physician as unfit to work shall be entitled to a PTB
leave of sixty five (65) calendar days which may be consumed ahead of the accumulated
sick leave. After exhaustion of the PTB leave, an employee who does not have any
accumulated sick leave may be given an additional fifteen (15) calendar days leave
maximum when certified necessary by the Company physician.

        Section 2. Any employee who is not fully recovered and fit to return to work as
certified by the Company physician shall, after exhaustion of all the leaves stated hereof,
shall be entitled to an additional four (4) months of tubercular leave without pay.

       Section 3. The Company shall also provide the afflicted employee with the
necessary supply of PTB drugs for free. Nutritional products manufactured by the
Company shall also be given free when certified necessary and prescribed by the Company
physician.

        Section 4. The Company shall terminate the services of any employee who is not
fully recovered and fit to return to work after exhaustion of all the leaves stated in
Sections 1 and 2 of this Article. The Company shall effect the termination under Article III,
Section 12 of this Agreement and it shall comply with all rules and regulations relative to
the termination of such employment.
2011-2013 Collective Bargaining Agreement                                          page 18



        Section 5. The phrase "fit to return to work" as used in Article XII of this
Agreement shall refer to work for which the employee was hired, and not work with a
lesser load or physical demand or requirement.

        Section 6. The employee shall, at all times during the time periods stated in this
Article, confine himself to complete rest and shall not obtain any employment or engage
in tiresome activity that may hinder his normal and speedy recovery. Any employee who
violates these rules shall forfeit all the privileges granted under Article XII of this
Agreement after due investigation by the Company, and the Union shall be properly
informed of the findings of such investigation. In addition to the forfeiture of privileges,
the Company may, after careful consideration and evaluation and when deemed
necessary, terminate such employee in accordance with applicable laws, rules and
regulations.

        Section 7. Any employee qualified for PTB leave during the period of treatment or
recuperation shall be entitled to obtain a loan from the Company for One Thousand Two
Hundred Pesos (P1,200) which shall be paid when the employee returns to work, provided
that said loan shall be condoned if death of the employee resulted from such illness.

        Section 8. In the event that the employee wishes to contest or dispute the findings
of the Company designated physician or specialist, with respect to the employee's state of
health, the employee shall submit to the Company the names of at least five (5) well-
known and reputable TB specialists with whom the employee may wish to consult, verify,
confirm, or dispute the medical findings. The Company will select one from the said list of
specialists, and the employee may consult such selected specialist, and the expenses
incurred in this connection shall be borne by the party (the company or employee) who is
found to be at fault. The findings of such specialist shall be binding on both the employee
and the Company with respect to the state of health of the afflicted employee.

       Section 9. 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.

                                          ARTICLE XIII
                            PATERNITY LEAVE AND SOLO PARENT LEAVE

        Section 1. The Company shall grant to all covered male employees who are legally
married paternity leave of seven (7) working days with pay in case of delivery, miscarriage
or abortion suffered by the spouse with whom he is cohabiting. Availment of paternity
leave under this Article must be supported by the child's Certificate of Birth or Death
Certificate, as the case may be.

        Section 2. Paternity Leave shall be granted only up to and including the delivery,
miscarriage or abortion of the fourth child. The paternity leave must be availed of within
sixty (60) days after the delivery, miscarriage or abortion of the child.

        Section 3. The Company shall grant to all covered employees with at least one (1)
year’s service and who are “solo parents” a solo parent leave of seven (7) working days
per year. A covered employee is deemed a “solo parent” if he/she falls under any of the
following categories:
2011-2013 Collective Bargaining Agreement                                           page 19



         a. A woman who gives birth as a result of rape and other crimes against chastity
            even without a final conviction of the offender, provided the mother keeps and
            raises the child.
         b. Parent left solo or alone with the responsibility of parenthood due to death of
            spouse.
         c. Parent left solo or alone with the responsibility of parenthood while the spouse
            is detained or is serving sentence for a criminal conviction for at least one (1)
            year.
         d. Parent left solo or alone with the responsibility of parenthood due to physical
            and/or mental capacity of spouse as certified by a public medical practitioner.
         e. Parent left solo or alone with the responsibility of parenthood due to legal
            separation or de facto separation from spouse for at least one (1) year, as long
            as he/she is entrusted with the custody of the children.
         f. Parent left solo or alone with the responsibility of parenthood due to
            declaration of nullity or annulment of marriage as decreed by a court or by a
            church as long as he/she is entrusted with the custody of the children.
         g. Parent left solo or alone with the responsibility of parenthood due to
            abandonment of spouse for at least one (1) year.
         h. Unmarried mother/father who has preferred to keep and rear her/his
            child/children instead of having others care for them or give them up to a
            welfare institution.
         i. Any other person who solely provides parental care and support to a child or
            children.
         j. Any family member who assumes the responsibility of head of family as a
            result of the death, abandonment, disappearance or prolonged absence of the
            parents or solo parent.

       As used in this Article, the terms “child” and “children” shall refer to those living
with and dependent upon the solo parent for support who are unmarried, unemployed
and not more than eighteen (18) years of age, or even over eighteen (18) years but are
incapable of self-support because of mental and/or physical defect/disability.

      Section 4. Paternity leave and solo parent’s leave shall be non-cumulative and
non-commutative.

                                         ARTICLE XIV
                               BEREAVEMENT LEAVE AND ASSISTANCE

        Section 1. The Company shall grant paid bereavement leave of six (6) working days
to all married employees in case of death of a legitimate spouse, legitimate child, parent,
parent-in-law, brother or sister, and to single employees in case of death of parent,
brother or sister.

        Section 2. The Company shall extend bereavement assistance in the amount of
P30,000 to any married employee in case of death of his/her legitimate spouse, child
(legitimate, illegitimate or adopted), parent, parent-in-law, and to any single employee in
case of death of his/her parent, brother or sister. In case of employee’s death, the
Company shall extend to his/her immediate family a bereavement assistance of P48,000
or the equivalent of one month’s salary, whichever is greater. The assistance shall be
extended upon presentation of the death certificate.

                                          ARTICLE XV
                             EMERGENCY LEAVE AND EMERGENCY LOAN
2011-2013 Collective Bargaining Agreement                                          page 20




         Section 1. The Company shall grant paid emergency leave to all regular employees
of five (5) working days per year for any of the following reasons:
         a. Sudden illness and/or hospital confinement of the employee's child, wife or
             husband. If there was no hospital confinement, the employee shall be required
             to submit the necessary medical certificate;
         b. Sudden illness and/or hospital confinement of the employee's parents;
         c. Sudden cancellation of work in Plant Operations and SC Support Operations
             but only where the employees could not be provided with another work or
             assignment, in which case emergency leave may be filed but subject to
             approval of the Plant Manager/SCSO Manager and the HR Manager;
         d. Transportation breakdown due to transportation strike affecting the
             employee's route; flood and other natural calamities;
         e. Fire in the vicinity of the employee's residence where such fire adversely
             affected the employee;
         f. Robbery, provided a police report is submitted;
         g. "Coup d'etat", provided there is a declaration of a state of emergency by the
             government; and
         h. Typhoon, when the Company on its own suspends work but where the
             government declares suspension of work in the public sector the period of
             suspension shall be deemed paid for and filing of emergency leave shall not be
             required.

       Section 2. In the event of fire or typhoon, causing serious damage or destruction
to the employee's house, employee shall be entitled to paid emergency leave of not
exceeding five (5) working days for that particular year.

         Section 3. Emergency Leave shall be non-cumulative and non-commutative.

        Section 4. An employee who finds himself a victim of fire, flood, typhoon,
earthquake and other calamities including robbery, sudden and unexpected
hospitalization of himself or his dependent, shall upon application, be granted emergency
loan in an amount not exceeding Ten Thousand Pesos (P10,000), provided that in case of
hospitalization, the loan shall be granted only when the hospital bill exceeds the
assistance provided by the Company under Article XVIII. The Emergency Loan shall be
paid through salary deduction in twelve (12) equal monthly installments without interest.

                                             ARTICLE XVI
                                            UNION LEAVE

        Section 1. The Company shall grant paid Union leave as follows:
             205 working days for 2011
             205 working days for 2012
             225 working days for 2013
to allow its officers and members to attend or participate in labor education, programs,
seminars, conferences and other union matters, provided a written application is filed
three (3) days in advance of intended leave.

         Section 2. The Union shall allocate or distribute the annual Union leave to any of
its officers and members.

      Section 3. The Company shall exert all efforts to approve all applications for Union
leave with or without pay; however, the Union recognizes that in all instances, the
2011-2013 Collective Bargaining Agreement                                           page 21



operational requirements of the Company are paramount and shall take precedence over
application for Union leave.

        Section 4. The Union leave shall be non-cumulative and non-commutative except
in the last year 2013 where the unused leave, if any, in the last two preceding years may
be added to 225, provided that the maximum additional shall be no more than thirty (30)
days.

        Section 5. In case of merger, the leave granted to one union shall not accrue to the
other, as this leave is given on a non-accrual basis.

        Section 6. Recognizing the important role of the Union President in the
enhancement of harmonious union-management relations, the Union President shall be
given all the time he requires to confer with the HR Director or other responsible
Company officials during work hours, provided his immediate superior approves. Such
meetings should be normally scheduled in advance. Such time spent by the Union
President shall not be chargeable to the union leave provided under Article XVI, Section 1
of this Agreement.

       Time-off from work filed by officers and/or members of the Union who attend
DOLE-sponsored activities that also require the participation of Management
representatives shall be considered as Company time. Such time-off from work shall not
be chargeable to the union leave provided under Article XVI, Section 1 of this Agreement.

                                       ARTICLE XVII
                      PROFESSIONAL LEAVE AND EDUCATIONAL ASSISTANCE

        Section 1. The Company shall grant a professional leave with pay to any regular
employee for the actual examination days in taking a government examination required
for the exercise of a profession, occupation or trade.

        Section 2. The Educational Loan Fund has been superseded by the MJN Multi-
Purpose Loan. As such, the educational loan is one of the services provided for in the MJN
Multi-Purpose Loan. The Union agrees and acknowledges that the Multi-Purpose Loan is a
loan facility being implemented by the Company at its sole discretion.

        Section 3. The Company shall grant a loan to cover tuition fee, book and school
supplies to any employee who wishes to pursue work-related courses, in an amount not
exceeding Ten Thousand pesos (P10,000) per term. Such loan shall be considered a
"grant" and shall no longer be repaid if the employee submits within sixty (60) days from
the end of the term a liquidation report, together with the original tuition fee receipts and
class cards reflecting a passing grade. Otherwise, the loan shall be repaid in five (5) equal
monthly installments through payroll deductions.

                                               ARTICLE XVIII
                                            MEDICAL AND DENTAL

        Section 1. The Company shall provide all covered employees with both In-Patient
and Outpatient Medical Programs. The Company, upon consultation with the Union, shall
establish the benefits and beneficiaries for both Programs. The Company, together with
the Union, shall review the benefits annually.
2011-2013 Collective Bargaining Agreement                                          page 22



       Section 2. The Programs shall cover employees and their qualified dependents as
defined below:
       a.    Married employees:
             - Spouse between 18 to 65 years of age, provided the spouse is cohabiting
                with the employee.
             - Unmarried legitimate and adopted children from birth (in accordance
                with existing agreement with the HMO) to 23 years of age, provided they
                are not gainfully employed and that they are living with the employee
                under one roof.
       b. Single employees:
             - Parents 65 years of age and below, provided they are living with the
                employee.
             - Unmarried natural children from birth (in accordance with existing
                agreement with the HMO) to 23 years of age, provided they are not
                gainfully employed and that they are living with the employee under one
                roof.

       Section 3. The annual premiums for an employee and each of his qualified
dependents under the In-Patient Medical Program shall be shared between the Company
and the employee in the ratio of 90% for the Company and 10% for the employee.

       In case the hospitalization expenses exceed the maximum benefit of the In-Patient
Medical Program, the Company and the employee shall equally share in the excess
hospital expenses.

       The employee’s 10% share of the annual premiums for himself and his qualified
dependents and his equal share in the excess of the hospital expenses, if applicable, shall
be paid in twelve (12) equal monthly installments through salary deductions.

       Section 4. The Company shall retain its present Outpatient Medical Program which
applies to reimbursement of expenses for Medical consultations, dental treatment and
services and purchases of prescribed medicines and drugs in accordance with the rules
and regulations to be established by the Company.

        The Outpatient Medical Program shall be extended to all covered employees who
shall be entitled to secure reimbursement from the Company for the following expenses
they incurred for themselves, spouses, parents (only in the case of single employees) and
unmarried children living with and supported by the employees:
        a. Medical consultations
        b. Dental treatment and services such as tooth extraction, surgical extraction,
           temporary or permanent filling, dental x-ray, root canal therapy, and
           prophylaxis
        c. Prescribed medicines
        d. Prescribed OTC medicines and vitamins provided that vitamins are indicated
           for therapeutic purposes
        e. Prescribed eyeglasses
        f. Laboratory examinations and x-rays recommended by the attending doctor and
           confirmed by the Company physician.

       Reimbursement shall be allowed up to a maximum aggregate amount of P19,000
for 2011, P20,000 for 2012, and P21,000 for 2013.
2011-2013 Collective Bargaining Agreement                                        page 23



       Unmarried children of covered employees suffering from congenital disease shall
remain covered by the Outpatient Medical Program even if they are beyond the age limit
imposed for a dependent for as long as they remain single and without source of income.
Subject to that same condition above, they shall be covered and entitled to the benefits
provided under Section 8 of Article XVIII of this Agreement.

       Section 5. All claims for reimbursements of out-patient medical consultation and
prescribed drugs must be duly supported with receipts and/or prescription as the case
may be.

      Section 6. The Company reserves the right to consult with the physician of an
employee who claims reimbursement and to take such other measures as it may deem
appropriate to verify the sickness, fees and other expenses involved.

       Section 7. The Company shall, in case of hospital confinement of the employee or
of any of his dependents in a hospital where the Company does not have a Contract of
Confinement, extend an In-Patient Medical Assistance to be granted as follows:
       a. The Company shall advance the payment for final hospital bills based on the
           actual hospital charges but not exceeding Forty Thousand Pesos (P40,000) all
           inclusive.
       b. Net hospital expense left after application of the Company's In-Patient Medical
           Program will be shared for covered cases as follows:
           1. Non-maternity cases: 50%-50% (equal sharing between Company and
               employee).
           2. Maternity cases (e.g., normal delivery, miscarriage or abortion, Caesarean:
               80%-20% (80% employee, 20% Company).

        Section 8. Reimbursement due from the employee shall be applied to his cash
advance and the payment of his hospital bills advanced by the Company shall then be
treated as loan of the employee which shall be paid through salary deductions in twelve
(12) equal monthly installments provided that where the net balance is P5,000 or more,
the deduction shall be extended to twenty-four (24) months, provided further that the
employee submits to HR all the necessary supporting papers for medical claim within four
(4) days from the date of the patient's discharge from the hospital, otherwise deduction
shall start on the next pay period without waiting for insurance reimbursement.

     Section 9. In case of hospital confinement of the parents of a single employee, the
Company shall allow the employee to:
     a. Get an initial cash advance of P3,000 for hospital deposit.
     b. Get medical loan for actual expenses incurred in the hospital not exceeding
         P40,000 payable in 24 monthly installments through salary deduction.

      Section 10. The annual physical/medical and laboratory examinations of covered
employees shall consist of:
              Chest X-ray
              CBC
              Urinalysis
              Stool examination
              Bun
              Creatinine
              FBS
              Cholesterol level
2011-2013 Collective Bargaining Agreement                                           page 24




                   Uric acid
                   Pap smear (for all married female employees; all single female
                    employees 35 years old and above; and all single female employees at
                    the recommendation of the Company Physician)
                   Liver Enzyme Test will be conducted for all employees once; follow up
                    procedures will be based on the recommendation of the Company
                    Physician
                   ECG: once every two years for regular employees

       Other laboratory tests or examinations shall be authorized by the Company free of
charge when recommended by the Company Physician.

Section 11. The Company shall extend the following maternity benefits to married
employees:
                          2011                  2012                 2013
  Normal Delivery       P15,200               P15,600              P16,100
 Caesarean Section      P24,900               P25,700              P26,400
     Miscarriage        P13,000               P13,400              P13,800
   Home Delivery         P4,000                P4,000               P4,000

      The net hospital expense after application of the Company’s In-Patient Medical
Program shall be shared in accordance with Section 7 (b) of this Article.

                                           ARTICLE XIX
                                GROUP LIFE ACCIDENTAL DEATH AND
                              DISMEMBERMENT INSURANCE PROGRAM

        Section 1. The Company shall retain its present Group Life, Accidental Death and
Dismemberment Insurance Program. A brief or abstract of the program shall be
distributed to all employees.

                                                  ARTICLE XX
                                            RETIREMENT PROGRAM

       Section 1. The Company shall retain its present Retirement Program subject to
periodic review by the Company to upgrade the program. A brief or abstract of the
program shall be distributed to all employees.

        Section 2. Retired employees who availed of either early or normal retirement
shall be included as recipients of Christmas food package traditionally given by the
Company to its employees. They shall likewise be allowed to purchase Company products
for their own personal use through the Employee Discount Order (EDO). These benefits
shall be enjoyed by them for as long as they live.

       Section 3. Retiring employees may be given their service awards only if their
retirement date falls within six (6) months to the date of their employment anniversary.

                                                ARTICLE XXI
                                               MEAL SUBSIDY

       Section 1. The Company shall grant to all office and non-field-based employees a
lunch subsidy (for day-shift production) or a supper subsidy (for night shift production) for
2011-2013 Collective Bargaining Agreement                                          page 25



every regular working day, provided that they work for at least five (5) hours. The amount
of the subsidy shall be the established cost of a regular meal in the canteen less P1.00,
which shall be the fixed share of the employee regardless of how much the cost of regular
meal may be fixed or agreed upon by the Company and the Canteen Concessionaire, and
shall be paid by the Company directly to the Canteen Concessionaire. Employees who
render overtime work for at least four (4) hours shall be entitled to one (1) meal subsidy
(defined as 100% of the cost of one regular meal in the canteen), while employees who
render eight (8) hours or more shall be entitled to another additional meal subsidy.

        Section 2. The Company shall grant the amount equivalent to the meal subsidy
mentioned in Section 1 hereof to all Drivers, Messengers and Delivery Helpers of the
Warehouse Unit whose regular workplace is outside the Company premises. The subsidy
shall be paid directly to the employees. In case of adjustments in the meal subsidy, the
amount granted by this section shall be adjusted by thirty percent (30%).

       Section 3. All employees mentioned in Sections 1 and 2 hereof shall be entitled to
one (1) meal subsidy whenever they work for at least three (3) hours on Saturdays,
Sundays, day-off, rest days and regular and special public holidays. Employees who render
overtime work for at least twelve (12) hours shall be entitled to one (1) meal subsidy,
while employees who render sixteen (16) hours or more shall be entitled to another
additional meal subsidy.

       Section 4. The Company shall continue its practice of granting per diem to its
Field-based Personnel under existing policies governing the grant of per diem.

                                               ARTICLE XXII
                                               UNIFORMS

        Section 1. The Company shall provide free uniform to each employee occupying a
position where in its sole judgment, the wearing of a uniform is necessary. The Company
will provide free laundry service for uniforms issued.

       Section 2. The Company shall solely determine the type and equal number of
uniforms to be issued to each employee, the manner of its care and wear and the time
and method of replacement.

       Section 3. All uniforms issued shall remain Company property. The Company may
require the return of any uniform at anytime.

                                               ARTICLE XXIII
                                            SPECIAL PROVISION

      Section 1. 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

         The Company shall determine the discount for new products on a case-to-case
basis.

        Section 2. Employees who have commenced working shall be fully compensated
for the day in case of power interruption provided they remain in their respective post. If
2011-2013 Collective Bargaining Agreement                                           page 26



the Company decides to send them home, they shall be paid the equivalent of at least four
(4) hours’ work or full compensation if they have already worked for at least six (6) hours.
Full compensation shall also be paid to the employee if in the course of normal operation
and after reporting for work they are sent home as a result of machine breakdown or
shortage or unavailability of raw or packaging materials. If for any one of the above
reasons or circumstances, including machine wash down, the employees are sent home
before they could start working, the company shall reimburse to them actual expenses
they incurred for transportation or the cost of actual gasoline consumed in the car of
motorized employee, provided that sending home an employee should be the last
recourse; the first priority being for the supervisor to look for any work assignment for the
employee even outside his section or department. In the event that work is not available
in any area, the employee may be sent home before filing an emergency leave subject to
the approval of the Plant Manager and the HR Manager.

         Section 3. In case of force majeure (e.g., typhoon, earthquake or other natural
calamities) full compensation shall be paid to the employees when they are sent home by
the Company. Employees who are required to stay for manning certain equipment or
facilities, or for maintenance purposes or to complete urgent work shall be paid 200% of
his basic pay computed from the time other employees are sent home. When the
government makes a pronouncement suspending work in public offices all employees,
whether they report for work or not, shall be excused and paid in full and those who failed
to report shall not be required to file any leave.

       Section 4. 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 (1) day. Priority shall also be given to him/her on
housing loans, provided pending applicants are moved backward. In case of calamity, the
Company will engage the Union in partnership to operationalize the assistance that will be
given to affected employees.

       Section 5. Plant operating personnel whose time is extended to attend the
emergency repair of equipment or continue processing a product, shall, in addition to
overtime compensation, be reimbursed his actual taxi fare where he completed the work
beyond 12:00 midnight but before 4:00 a.m. Those employees already at home who may
be recalled to work to attend to such emergency and repair shall also be entitled to actual
reimbursement or the cost of actual gasoline consumed in the car of the recalled
employee, in addition to overtime compensation.

         Section 6. The Company shall provide court leave with pay to any employee who is
subpoenaed to appear in court as witness or accused in a criminal case, provided that
where the employee is accused, his innocence must be shown by final judgment. Should
the final judgment show that the employee is guilty, the Company shall deduct whatever
is paid from his salaries and benefits.

       Section 7. In case of work-related, work-connected accident, the Company shall
make good the difference between the ECC benefit and the actual medical expenses
incurred by the employee by reason of such accident. Furthermore, the Company shall
grant to the employee another leave not exceeding fifteen (15) calendar days after he
shall have exhausted all his current sick leave upon certification by the Company's
Physician that the employee is not yet fit to work. It is understood, however, that the
employee may exercise the option of being solely under the ECC leave or his own
Company Sick leave. If as a result of such accident, the employee becomes physically unfit
2011-2013 Collective Bargaining Agreement                                         page 27



to resume his/her employment, the company may terminate his/her employment subject
to the payment of two (2) months separation pay for every year of service provided that if
the cause of the accident was the employee's own fault or negligence, the separation pay
shall only be 1.5 months per year of service.

        Section 8. The Company shall maintain the existing arrangement of providing
means of air-conditioned transportation for its employees assigned and working in the
second shift from the office to drop-off points at Mantrade, Pasay Rotonda, Landmark,
Pacita Complex, Imus, Cubao, and Monumento, while those rendering overtime from the
office to Mantrade-EDSA, Landmark, and Pasay Rotonda. The Company shall likewise
provide air-conditioned transportation for employees of the third shift from Mantrade-
EDSA to the office. In cases where the regular transportation service contractors fail to
provide such service, the Company undertakes to provide Company vehicles to take over
the function of contracted transportation service up to the drop-off points mentioned in
this section. In case the Company is unable to provide actual transportation to take over
the function of the contracted transportation service, the Company shall reimburse the
employees their actual taxi fare from work to home. The Company shall provide all
employees who are traveling on Company-hired transportation with travel insurance, the
amount of which shall be subject to the optimal insurance that can be provided by the
service provider.

       Section 9. The Company agrees to help ensure the facilitation of the employee’s
application for salary loan with the SSS and/or Pag-IBIG”.

        Section 10. The parties recognize and agree that breast-feeding is the best form of
infant feeding, and support the objective of Executive Order No. 51. But where milk
substitute or infant formula is recommended and prescribed by the doctor, the Company
agrees to provide Infant Feeding Assistance to qualified employees as follows:
        1. A total supply of 54 kilos in a year of Company-manufactured infant formula to
           be administered, thus:
               4 kilos per month for the first six (6) months
               5 kilos per month for the next six (6) months
         This assistance will be extended provided that the following requirements are
         complied with:
           a. Submission of Marriage Contract (for male employees only)
           b. Submission of Birth Certificate
           c. Submission of the prescription and recommendation of the doctor for
                bottle feeding.
        2. The formula shall be given for the first 12 months of life and shall be provided
           up to the fourth child of the employee or his spouse counting from January 1,
           1984.
        3. If the recommendation of the physician is for a specialized Company
           manufactured formula (such as Prosobee, etc.) the Company shall provide the
           supply based on the equivalent cost of the regular formula.

      Section 11. In addition to the present maternity leave provided by law, the
Company shall provide for its employees additional one week of post maternity leave
when certified necessary by the Company physician.

       Section 12. A cash gift of Three Thousand Pesos (P3,000) shall be given by the
Company to any employee who passes a government licensure examination for holders of
bachelor’s degrees like, the Bar, CPA, Medical and Engineering examinations.
2011-2013 Collective Bargaining Agreement                                          page 28



       Section 13. The Union will support and cooperate in the enforcement of the
Alcohol- and Drug-free Workplace Policy jointly prepared by the representatives of both
the Union and the Management. Said policy is included in this agreement as Annex B in
compliance with DOLE DO 53-03.

                                        ARTICLE XXIV
                      TRAINING, JOB ROTATION, TEMPORARY ASSIGNMENT,
                            VACANCY, PROMOTION AND TRANSFER

       Section 1. The Company shall post a written notice for at least seven (7) days of
any vacancy in the Company, the level of the position where the vacancy is for a
Management Staff shall be indicated in the notice. The Company has no obligation to fill
any or all vacant positions.

       Where a vacancy occurs in a particular unit of the Company, the qualified
members of that unit shall be given priority in filling up said vacancy. However, if another
employee belonging to another unit is found more qualified than any member of the unit,
then the Company shall give priority to that other employee.

       Section 2. The implementing guidelines of the Skills Enhancement Program (SEP),
a copy of which is attached hereto as Annex “A” and made an integral part of this
Agreement, shall govern training, job rotation, temporary assignment, vacancy, promotion
and transfers of employees in the Plant Operations. The Company reserves the right to
amend or replace said implementing guidelines, with due notice to the Union.

        Section 3. 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 leader position or
an exempt position, the differential pay shall be P150 per day.

        Section 4. An employee who is promoted after undergoing the Skills Enhancement
Program shall receive a corresponding salary increase based on salary analysis and
evaluation. The 15% promotional increase will only be applied if it will not cause salary
equity issues.

        Section 5. In cases of straight promotion from a rank-and-file position to
supervisory or exempt positions, the salary adjustment shall be left to Management’s
discretion.

       Section 6. Nothing in this Agreement shall be construed to prohibit the Company
from hiring talent and skill from outside the Company whenever in its sole judgment
obtaining such talents from outside will materially aid the progress of the Company.

        Section 7. The Company shall have the sole right to transfer an employee or
employees from one territorial area to another, or from a section, unit, department or
division to another whenever or wherever the needs of the Company so require, provided
that in the case of transfer of field personnel, he/she shall be given 5 days advance notice
for transfers within Metro Manila and 10 days for transfers from one region to another
region (e.g. Luzon to Visayas or Mindanao or vice versa). Transfers of Non-field-based
2011-2013 Collective Bargaining Agreement                                          page 29



employees shall comply with the implementing guidelines of the Skills Enhancement
Program.

                                     ARTICLE XXV
                     LABOR AND MANAGEMENT COOPERATION COMMITTEE

        Section 1. A Labor and Management Cooperation (LMC) Committee composed of
representatives from the Union and the Management will serve as a venue for dialogue to
discuss matters not specifically covered by the CBA such as those that pertain to
productivity, occupational safety and health, improvement of quality of work life, product
quality improvement and similar concerns.

       Section 2. The Labor-Management Cooperation Committee shall observe the
following procedure:
       a. The parties shall be accorded equal representation in the Committee.
       b. The parties shall agree on the frequency of Committee meetings; in the
           absence of any such agreement, the Committee shall meet at least once a
           month. The meetings shall be held at a mutually agreed time and place.
       c. Each party shall provide the other a full agenda of items for discussion at least
           fifteen (15) working days prior to a scheduled meeting.
       d. The parties shall appoint one or more of the attendees to take the minutes of
           the meeting.
       e. The minutes shall be forwarded to all the attendees for review. The minutes
           shall then be submitted for approval by the Committee during the next
           meeting. The duly approved minutes shall serve as a confirmation and
           reference of the understandings of the parties with respect to the matters
           contained therein.
       The parties may formulate additional rules of procedure to supplement the above
procedures.

                                         ARTICLE XXVI
                              SPORTS PROGRAM AND ANNUAL OUTING

      Section 1. The Company shall provide a Sports Program and Annual Outing at its
expense for the purpose of promoting the wholesome interaction among the employees.

                                                 ARTICLE XXVII
                                            GRIEVANCE PROCEDURE

        Section 1. A grievance is a complaint, dispute or controversy in which it is claimed
that either party has failed to comply with an obligation assumed by either or both under
the terms of the agreement or other terms and conditions of employment. A grievance
must be filed within seven (7) working days from the time the act or action complained of
occurred or was effected or implemented; otherwise, the right to complain shall be
deemed waived.

       Section 2. The Company and the Union recognize that all grievances should be
settled promptly and as close to the source as possible, and they will both sincerely
endeavor to present all the facts relating to a grievance in all steps in the grievance
procedure. The steps in the grievance procedure shall be as follows:

               Step I. The employee having a grievance shall present in writing to his
         immediate Supervisor or District Manager within five (5) working days from the
2011-2013 Collective Bargaining Agreement                                             page 30



         date the act or action complained of occurred, was effected or implemented. The
         employee and the Supervisor or District Manager shall meet within five (5) working
         days from receipt of written grievance and reach a satisfactory settlement. The
         settlement shall be reduced in writing duly signed by the parties. Failing
         satisfactory settlement of grievance, the employee shall proceed to Step II of the
         procedure within five (5) working days from receipt of the decision; otherwise, the
         grievance shall be considered as finally settled.

                  Step II. The employee and the Union Section Steward shall appeal the
         decision in Step 1 to the Section or Unit head or Regional or Sales Manager who
         shall all meet to discuss and settle the grievance within five (5) working days from
         receipt of the appeal. The decision in Step II shall be reduced in writing duly signed
         by all parties. Failing satisfactory settlement of the grievance, the employee shall
         proceed to Step III of the grievance procedure within five (5) working days from
         receipt of the decision; otherwise, the grievance shall be considered as finally
         settled.

                 Step III. The employee and the Division or Regional Union Steward shall
         appeal the decision in Step II to the Division Head or Senior Manager who shall all
         meet to discuss and settle the grievance within five (5) working days from receipt
         of the appeal. The decision in Step III shall be reduced in writing duly signed by all
         the parties. Failing satisfactory settlement of the grievance, the employee shall
         proceed to Step IV of the grievance procedure; otherwise, the grievance shall be
         considered as finally settled.

                  Step IV. The employee and the Union President shall appeal the decision in
         Step III to the HR Director who shall meet to discuss and settle the grievance within
         seven (7) working days from receipt of the appeal; otherwise, the grievance shall
         be deemed finally settled. The decision in Step IV shall be reduced in writing duly
         signed by all the parties.

                 Step V. Failing satisfactory settlement of the grievance at Step IV of the
         grievance procedure, the same shall be submitted for arbitration within ten (10)
         working days from receipt of the decision in Step IV. The President of the Union
         shall inform the Company in writing that grievance shall be submitted for
         arbitration.

       Section 3. It is the intention of the Company and the Union that time is of the
essence in the settlement of all grievances and that the time periods provided for all steps
of the grievance procedure shall be strictly followed. The Company and the Union
mutually recognize that the time period provided for in Steps III, IV and V of the grievance
procedure cannot be enforced in grievances originating from the sales force assigned
outside of the Greater Manila Area; therefore the time periods provided therein shall be
counted from the date of receipt by mail of the decision in Steps I and II of the grievance
procedure.

         Section 4. Within five (5) working days upon receipt of the request to arbitrate a
grievance, the President of the Union and the HR Director shall jointly draw and prepare a
list of five (5) names of individuals who are acceptable to both parties to act as voluntary
arbitrator, who shall be selected in the following manner:
         a. The Company shall strike out the name of the said five (5) individuals and the
              Union shall do likewise from the remaining names;
2011-2013 Collective Bargaining Agreement                                         page 31



         b. The parties shall continue to alternately strike out a name from those
            remaining until one name is left in the list. The one left shall be voluntary
            arbitrator who will decide the case in dispute.

       The Company and the Union shall equally share arbitrator's fee in those cases
where the award does not wholly sustain the positions of both parties. Where the award
wholly sustains the position of either party, the fees shall be solely paid by the party
whose position was not sustained.

        Section 5. The Arbitrator shall commence hearing within five (5) calendar days
from date of his acceptance to handle the case. The Company and the Union shall submit
to the Arbitrator a written communication of their respective positions at least two (2)
calendar days before the date of the first hearing. It is the spirit and intention of the
Company and the Union that the Arbitrator shall not be bound by technical rules of
procedures, and it may avail of all reasonable methods to ascertain the facts of the issues
in dispute. The Arbitrator shall not have the power to make any award changing or
amending, or adding to the provisions of this Agreement. The Arbitrator shall promulgate
its award within thirty (30) calendar days from the date of the first hearing. The decision
of the arbitrator shall be final and binding, and neither the company nor the Union shall
ask or seek for its reconsideration except in those instances provided for under the Labor
Code where the decision of the compulsory arbitrator may be appealed to the NLRC.

        Section 6. The Company shall allow time-off with pay for actual time spent in
attending the meetings of the grievance procedure to the grievant employee, the Union
representative specified in the steps in the Grievance Procedure, and such other
employees as may be called by the Company or the Union to provide information
necessary for the proper processing of a grievance. Where the grievance is of a nature
that affects a group or groups of employees, time-off with pay shall be allowed to two (2)
grievant employees from each unit or section of the Company affected by the grievance.
The Union shall select the representative grievant from each unit or section as the case
may be.

        Section 7. For corrective actions pursuant to the Company Code of Conduct, the
Company shall accord the employee the right to due process in accordance with
applicable law and jurisprudence. It is understood and agreed that the Human Resources
Division shall not entertain a recommendation for disciplinary action unless it is shown
that –
        (a) the employee concerned has been informed in writing on the nature of the
             offense;
        (b) that he has been given sufficient time to answer the charge against him; and
        (c) that the Union has had participation in the investigation of the offense.
        The Company will exert best efforts to expedite the investigation and resolution of
every recommended corrective action. The Company shall furnish the Union a copy of the
findings of the investigation before the decision on the case shall be implemented.

        Section 8. The existing Company Code of Conduct is adopted and incorporated as
part of this Agreement, provided that infractions or offenses enumerated therein shall not
be exclusive as other offenses not specifically covered by the Code shall have their
corresponding penalty that may be meted out by the Company. The Company shall allow
the Union participation in any proposed changes to said Code in accordance with
prevailing law and jurisprudence.
        Section 9. Nothing herein contained shall prohibit an employee covered by this
Agreement from submitting a grievance directly and individually to the Company.
2011-2013 Collective Bargaining Agreement                                            page 32




                                          ARTICLE XXVIII
                                   MEETINGS AND BULLETIN BOARD

       Section 1. The Company shall, within the lifetime of this Agreement, provide a
place where the Union could have a modest office for its exclusive use. It is understood
that the Union takes full responsibility for the order and upkeep of the place so designated
by the Company.

        Section 2. The Company shall allow the Union to place a bulletin board of
sufficient size at a conspicuous place to be designated by the Company.
        Section 3. Only the following shall be posted on the bulletin board:
        a. Notices of Union recreational and social affairs
        b. Notices of Union elections
        c. Notices of Union appointments and result of Union elections
        d. Notices of Union meetings
        e. News clippings about labor

       Section 4. Other notices shall be subject to approval by the HR Director prior to
posting.

       Section 5. The Company shall allow the Executive Board of the Union to hold its
meetings at the Canteen/Function Room and during such time properly approved by the
HR Director or the General Manager.

                                         ARTICLE XXIX
                            FAMILY PLANNING PROGRAM AND SERVICES

        Section 1. In compliance with its obligation under the Labor Code, the Company
shall provide free family planning services for its employees which shall include, but not
limited to, the application or use of contraceptive pills and intra-uterine devices. The
Company further undertakes to promote a family planning program for its employees.

                                             ARTICLE XXX
                                            PUBLICATION

        Section 1. The Company shall pay the cost of printing sufficient number of copies
of this Agreement and shall undertake to distribute them to all employees.

                                           ARTICLE XXXI
                         FULL SETTLEMENT, WAIVER AND NON-GUARANTY

        Section 1. The Company and the Union acknowledge that during the negotiations
which resulted in this Agreement, each had the unlimited right and the opportunity to
make demands and proposals with respect to any subject or matter not removed by law
from the area of collective bargaining and that the understandings and agreements
arrived at by the parties after the exercise of that right and opportunity are fully set forth
in this Agreement. Therefore, the Company and the Union, for the life of this Agreement,
each voluntarily and unqualifiedly waives the right, and each agrees that the other shall
not be obliged to bargain collectively with respect to any subject or matter referred to or
covered in this Agreement, even though such subject or matter may not have been within
the knowledge or contemplation of either or both of the parties at the time they
negotiated or signed this Agreement.
2011-2013 Collective Bargaining Agreement                                          page 33




        Section 2. The Company and the Union mutually agrees that the terms and
conditions of employment for employees are embodied in this Agreement and the same
shall govern the relationship between the Company and such employees. On the other
hand, all pre-existing, current and prospective benefits, practices and privileges not
covered by the Agreement shall be considered gratuitous acts by the Company and as
such will not be construed as an obligation on the part of the Company. The Company will
endeavor to ensure it maintains parity in benefits; however, it shall retain the prerogative
to design benefit packages that ensure relevance to the prevailing economic situation and
changing employee demographics. The economic benefit herein provided shall be without
prejudice to the economic benefits which future legislations may grant.

       Section 3. In the event that any provision of this agreement is made invalid by any
laws or decrees, such laws or decrees shall not invalidate the remaining portion of the
Agreement.

                                              ARTICLE XXXII
                                       EFFECTIVITY AND DURATION

        Section 1. This Collective Bargaining Agreement shall become effective and
binding on the Company and the Union and their successors and assigns for three (3)
years from January 1, 2011 to December 31, 2013 and thereafter be automatically
renewed on a yearly basis, unless the Company or the Union serves upon the other
written notice of termination sixty (60) days prior to the original or renewal expiration
date of its intent to terminate or modify this Agreement. Insofar as the Union recognition
is concerned, as provided in Article I, Section 1 hereof, this Agreement shall be valid and
effective up to December 31, 2015 subject to the 60-day Freedom Period as provided by
law.

                                            ARTICLE XXXIII
                                      NO STRIKE AND NO LOCKOUT

        Section 1. The Union, its officers, agents and members agree that for the duration
of this Agreement, there shall be no strike, walkout, sit-down, slowdown, stoppage of
work, boycott, secondary boycott, refusal to handle any merchandise, parts or products,
sympathy or general strike, or any act of similar nature which would interrupt or interfere
with the normal business operations and work schedules of the Company or picketing of
any kind or form, however peaceful, and that it will not otherwise permit, countenance, or
suffer the existence of or continuance of any kind of these acts, particularly pending
grievance proceedings or negotiation of a collective agreement.
        Section 2. The Company agrees that there shall be no lockout so long as this
Agreement is in effect.

        IN WITNESS WHEREOF, the parties hereto, duly authorized to bind their respective
principal, have signed his Agreement this 21st day of December 2010 at Makati City,
Philippines.
2011-2013 Collective Bargaining Agreement                                                page 34



                          MEAD JOHNSON NUTRITION (PHILIPPINES), INC.
                           By:


                                             PAUL A. RICHARDS
                                      President and General Manager
                                   Mead Johnson Nutrition (Philippines), Inc.



                                         MA. VIVIAN A. CHEONG
                                       Director – Human Resources

    KATHRYN BLISS P. AMANTE                                        MA. LIRA D. JUSAYAN

    ARCHEL C. ANGELES                                              BERNARD S. LACHICA

    CAMILLE M. CANIZA                                              PILAR GENEBELLE D. MORENO

    JENNIFER ANN Z. DE LEON                                        MARCELINA M. TABLADA

    MARINO G. HUIDEM                                               BONIFACIO G. YUHICO, JR.


                         MALAYANG SAMAHAN NG MGA MANGGAGAWA
                              SA MEAD JOHNSON NUTRITION – DFA
                          By:


                                        REYNALDO A. HERNANDEZ
                                           Chairman/President

JEREMY N. BRIONES                                            JONATHAN G. CALDERON

RODEL L. CAWILI                                              JOSELITO T. COBRADO

IRENEO M. ERESE                                              EMMANUEL C. ESCOLAR

JESUS B. ESPENIDA                                            EDWARD GIL L. ESPINOSA

GIOGASPER P. GREGORIO                                        TONETTE M. LARIZA

RICHARD V. RIPARIP                                        MANUEL G. SALAMAT

COLLINS T. SAMSON

                                              Assisted By:

                                     ATTY. DOMINGO T. ANONUEVO

                                            Attested by:
                                  _____________________________
                                 Department of Labor and Employment
2011-2013 Collective Bargaining Agreement                                            page 35



                                            Witnesses:

_________________________                                _________________________
                                                             DFA Representative

                                   ACKNOWLEDGMENT
Republic of the Philippines )
Makati City                 ) S.S.
        BEFORE ME, the undersigned Notary Public in and for Makati City, personally
appeared:
Name                        Government Issued ID
Paul Richards               Passport No. 761058028          GBR/2004/2014
Ma. Vivian Cheong           SSS No. 33-0167867-5
Kathryn Bliss Amante        SSS No. 06-1162449-3
Ma. Lira Jusayan            SSS No. 02-0620206-8
Archel Angeles              SSS No. 33-1694124-5
Bernard Lachica             SSS No. 33-5754768-2
Camille Caniza              SSS No. 33-3527117-4
Pilar Genebelle Moreno      SSS No. 33-2199331-4
Jennifer Ann De Leon        SSS No. 33-2390996-6
Marcelina Tablada           SSS No. 33-0013712-0
Marino Huidem               SSS No. 03-6948981-2
Bonifacio Yuhico, Jr.       SSS No. 03-6869946-7
Reynaldo Hernandez          SSS No. 03-3164312-3
Jeremy Briones              SSS No. 33-3678484-8
Jonathan Calderon           SSS No. 33-1589014-8
Rodel Cawili                SSS No. 33-3019873-1
Joselito Cobrado            SSS No. 04-0830761-9
Ireneo Erese                SSS No. 33-3448508-4
Emmanuel Escolar            SSS No. 33-6584443-2
Jesus Espenida              SSS No. 03-6707773-4
Edward Gil Espinosa         SSS No. 33-6226998-4
Giogasper Gregorio          SSS No. 03-8155057-0
Tonette Lariza              SSS No. 33-3250320-1
Richard Riparip             SSS No. 33-1997942-1
Manuel Salamat              SSS No. 33-5596032-6
Collins Samson              SSS No. 02-1934234-2

all of whom are known to me and to me known to be the same persons whose names are
subscribed to and who acknowledged to me that they executed the foregoing instrument
and statement as an act of their own voluntary free will and deed as well as the voluntary
free will and deed of the principals they represent.

        IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seal of my
office at the place first hereinabove written this ____ day of __________ 2011.



Doc. No. ______;
Page No. ______;
Book No. ______;
Series of 2011
                                      ANNEX “A”
                             Skills Enhancement Program

(The following is a set of guidelines established by the Company. This is subject to
change depending on operations or business needs, in consultation with the Union. This
is included in this CBA booklet as an implementing guide on the existing SEP but was not
a subject of negotiation.)


CORPORATE PHILOSOPHY

Mead Johnson Nutrition (Philippines), Inc. believes that in order to achieve the business
growth strategies, the organization needs to focus on three important themes: GREAT
SCIENCE, SUPERIOR MARKETING and EXTRAORDINARY LEADERSHIP. Since leadership
development remains to be the No. 1 priority of the whole organization, BMS
Philippines is likewise committed to providing opportunities for growth and
development as embodied in the BMS Pledge and the overall business direction.


PROGRAM OBJECTIVE

The Skills Enhancement Program (SEP), aims to define the functional and behavioral
competency requirements in the non-exempt group of jobs of the Supply Chain
Division. Specifically it aims to:

   Create a flexible work force to support the operational requirements of the
    business as well as promote the work-life balance initiative of the organization
   Standardize job level assessment across the non-exempt group of the Supply Chain
    Division
   Identify individual career path and structure developmental training programs
    aligned with the career path
   Balance the technical and leadership values development of SC associates, with
    focus on plant operations, quality assurance and trouble shooting & maintenance.


TERMINOLOGY

1. Ladder – (or band) to which a job function’s skills and competency requirements
   are categorized.
2. Rank – is the reflection of an incumbent’s current skills and competency level
3. Level – organizational hierarchy of job functions.
4. Promotion – employment movement to which an incumbent is given a job function
   categorized in the next higher ladder/band; corresponds to a change in rank and
   pay
5. Confirmation – employment movement to which an incumbent is given a job
   function categorized within the same job ladder as the one he is currently holding.


SKILLS & REQUIRED LEVEL OF COMPETENCY FOR EACH OPTECH LADDER

         PRODUCTION                 SKILLS REQUIREMENT                     LOC
   Optech 3      In two lines                           Mastery
                 Blending
                 Machine Operations                     Mastery
                 Basic trouble shooting / PM for two    Practicing
                 lines
                 In process checks                      Practicing
   Optech 2      In one line                            Mastery
                 Blending
                 Machine Operations                     Mastery
                 Dumping /Stripping                     Practicing
                 Basic trouble shooting / PM for one    Practicing
                 line
                 In process checks                      Practicing
   Optech 1      Machine Operations : limited to 1 or 2 Practicing
                 major equipment only
                 Processing, Dumping / Stripping        Practicing


   PLANT                 SKILLS REQUIREMENT                    LOC
MAINTENANCE
  Optech 3       Line Safety                            Practicing
                 Line Operations                        Mastery
                 Maintenance & Repair                   Mastery
                 Quality Performance & Assurance        Practicing

   PROJECT               SKILLS REQUIREMENT                    LOC
 ENGINEERING
   Optech 3      Technical skills                       Practicing
                 PM, Operations and Troubleshooting Practicing
                 & Repair
                 EHS & Regulatory /Quality Assurance Practicing
                 Project Management &                   Practicing
                 Administration

     PLANT              SKILLS REQUIREMENT                     LOC
Quality Inspector
   Optech 2       RM Sampling                           Practicing
                 PM Sampling / Inspection               Practicing
                 Milk Base Testing                      Practicing
                 Retention Samples Maintenance          Practicing



   QUALITY               SKILLS REQUIREMENT                    LOC
 QC Lab Helper
              Optech 1        Laboratory Glasswares Maint.           Mastery
                              Waste Disposal                         Practicing
                              Laboratory equipment set-up /          Practicing
                              assembly




     PSG/WO                         SKILLS REQUIREMENT                      LOC
     Optech 3     PSG
                        Storage & Handling                               Practicing
                                  Issuance                               Practicing
                                Dispensing                               Practicing
                              Dry Blending                               Practicing
                  WO
                                 Receiving                               Practicing
                        Storage & Handling                               Practicing
                                  Issuance                               Practicing
                         BO/Returns/waste                                Practicing
                                   Powder
     Optech 2                WO            Receiving                   Practicing
                                           Storage & Handling          Practicing
                                           Issuance                    Practicing
                                           BO/Returns/waste Powder     Practicing
                             PSG           Storage & Handling          Practicing
                                           Issuance                    Practicing
                                           Dispensing                  Practicing
     Optech 1                WO            Receiving                   Awareness
                                           Storage & Handling          Awareness
                                           Issuance                    Awareness
                                           BO/Returns/waste Powder     Awareness
                             PSG           Storage & Handling          Awareness
                                           Issuance                    Awareness
                                           Dispensing                  Awareness




    TRANSITION GUIDELINES

            SEP is a totally different system in determining levels. Thus, there is no
             direct comparison to the current leveling versus the new ladders identified
             using the SEP system.

            However to reconcile the current organizational structure/hierarchy with
             the philosophy and framework of the SEP the following procedures were
             introduced:
.
             a) All incumbent positions will be reclassified under the standard job
                evaluation system.
                 Current function will determine the target ladder. In general e.g.
           Optech 1 for Production Worker (entry level) - Positions
                                      performing functions such as
                                      material handling, simple
                                      machine/equipment handling such
                                      as conveyors, handling equipment &
                                      line auxiliary machines.

           Optech 2 for Machine Operator (major machines)
                             - Positions performing functions that requires
                              technical skills on operating major
                              machines / equipment, such as filling
                              machine, labeler, cartoner, case packer,
                              seamer, processing equipment, blender and
                              basic maintenance skills

            Optech 3 for Leadman - Leadman, Mechanic,
                 Process/Prod.Techncian
                             - Positions requiring specialized skills,
                               technical, Quality assurance and process
                               technology, and/or a complete set of OT2
                               skills on at least 2 different lines in the plant.

b) All incumbents who are qualified to be OT2 based on the assessment,
   but are still classified under the OT1 positions will be upgraded
   accordingly, provided the required LOC for each set of skills per ladder
   should be completed before an associate qualifies to the next higher
   rank.

c) All incumbents who are qualified to be OT2 and are currently holding
   positions already classified as an OT2 level will be given notices of
   change in position titles.
   - However Optech/s geared to assume OT2 functions but were still
       assessed as OT1 will be trained further to bridge the gap and meet
       required criteria

d) The same preceding guideline will apply for all incumbents whose
   current positions already fall under the OT3 ladder e.g. Leadman,
   Mechanic, Process Technician.
   - However, incumbents whose current positions fall under the OT3
       ladder but whose actual assessment results still reflect a competency
       of OT2 will have to be trained extensively to meet the current
       required criteria.

e) There will be no downgrading of ranks/ladder of associates. Backlogs
   identified through the SEP results, should be prioritized as a training
   need.

f) The associate cannot move to the next higher ladder unless all the skills
   and competency level required for the current ladder is completed.
ADMINISTRATIVE PROVISION

        All non-exempt associates’ performance, as applicable, will be evaluated by
         his respective supervisor on an annual basis. Evaluations should be
         conducted and all results finalized within the first two months of the year.
         General activities involved will be the following:
             a) Initial assessment by immediate supervisor
             b) Consultations with other supervisors concerned to validate and
                 finalize assessment scores
             c) Discussion with employee concerned of assessment results
             d) Agree on the results (supervisor/employee)
             e) Transpose assessment results to SEPRating Sheet to get actual
                 quantitative assessment
             f) Submit to Plant Manager Office results for approval and
                 documentation
             g) Open period for enrollment to SEP Training Program

     A. SEP Processes and Developmental Tools

        Trainees to Optech
         In some instances where an employee is given the opportunity to be
         absorbed from another SC department, such as in situations due to
         dissolution of a department, the employee will be given a status of “trainee”
         for 6 months, and would have to undergo extensive training and complete
         required training hours to gain the minimum required skills in his assigned
         area.

         Note: There will be no diminution in rank/ladder and salary for the affected
         employees.
              As much as possible targeted function to be assigned to the affected
              employee should be within the same ladder as his/her current one.

     Implementing Guidelines:
     1) Conduct an initial skill assessment of the associate using the appropriate SEP
        tool
     2) Discuss with the trainee initial results
     3) Prepare Training Plan vs. requirements of associates targeted function, and
        conduct on the job training for next 6 months
     4) Conduct post training SEP assessment
     5) Discuss with Trainee SEP results and further Training Plan, if needed
     6) Provide HR necessary documentation to effect changes
     7) Issue memo regarding official designation in the department and function
     8) Issue an announcement

        Associates From Optech 1

     Formal Training:
     The purpose of the SEP training program is for associates to develop their
     functional and technical competencies. This opportunity shall give them the
     benefit of flexibility and the advantage of experience and training, to be
     considered for the next level or when specific vacancies for positions come up.
Associates are encouraged to complete and meet the skills backlogs for their
respective level/ladder to:
              - be “skills flexible” and “skills competitive” within his ladder.
              - allow him to be included in the pool of talents when vacancies
                  for higher positions come up.

Associates will be provided with a training grid prepared by their respective
supervisors that will address specific skills gaps needed in their functional area.
However management/supervisors will have the option to modify the training
grid to suit the training needs of an associate.

Implementing Guidelines:
1) After the conduct of the annual SEP assessment of associates, an
   announcement will be made pertaining to a period wherein the interested
   associates can signify their interest to be trained under the SEP Program
2) A prioritization process will be conducted if not all associates can be
   accommodated for a training period. The process will be as follows
   a) Based on tabulated SEP results, Bottom 5% and Top 5% of associates
       within the Ladder or Band be given priority for the first half of the year
       to fill in the skills and competency gap.
   b) Based on SEP results the rest of associates who signified their intent to
       enter the SEP training program to be accommodated for training for the
       second half of the year.
3) Selected associates who will undergo training shall be notified in writing at
   least one week before start date and will be asked to document their
   commitment to finish the program.
   - If in any case an associate would like to withdraw from the program,
       then a discussion will be conducted and appropriate documentation will
       have to be made on this.
4) Based on the results of the SEP assessment a training grid will be created
   with clear measures of performance and timeframe for each training phase
5) Schedule of training will be coordinated with the supervisor or trainor
   concerned for clear accommodation in the area and coverage
   - If in case the training program should be disrupted due to immediate
       business needs and priorities, the associate and supervisor should
       discuss and identify when the program can be resumed.
6) The period for training may vary from 3-6 months, depending on tasks and
   type of machine involved, and should be reviewed/updated every month
   within the training period.
7) The associate shall be evaluated after 3 months or at the end of the
   specified training period, the results of which shall be properly documented
   - Review results with line trainors first for verification
   - Employee to make self assessment using form provided for this
   - Provide feedback/review results with employee, taking into
       consideration all forms/tools of assessment
   - Depending on the level of skills acquired by the associate, the training
       period can be extended for a maximum of 3 months provided total
       training period will not exceed 6 months, and evaluation to be done
       every 3 months thereafter
8) SEP Certificate of Training will be awarded to associates who completed the
   training skill requirement stipulated on the training grid and will be part of
   their 201 file.
       NOTE:
       As a trainee for a specific grid, the trainor should be fully accountable and
       ensure that comprehensive & full supervision is given before a trainee is allowed
       to operate/run any equipment/processes. Thus if something happens to the
       trainee or to the normal flow of operations, the trainor/trainers and/or the line
       supervisor should take full responsibility. However if the accident happened
       after the training time/period, then the trainee will be held accountable.


           Other Venues to facilitate employee’s skills enhancement
            - following concepts as stated in the CBA, to be considered relative to
            business requirements and opportunities are presented.

Job Rotation
       The purpose of job rotation is to give the associate the opportunity to practice
       the skills he has acquired, as well as give the company the flexibility to deploy
       manpower based on business needs. Associates will not be rotated to jobs they
       have not been certified for.

       Implementing Guidelines:
       1) For an associate to be part of the job rotation program, he./she must have
          successfully completed the training and certified for the jobs he/she shall be
          rotated to.
       2) Associates who will be put on job rotation shall be notified in writing, at
          least one week before start date.
       3) The period of job rotation shall normally be around 3 months but
          management may extend this period depending on business needs
       4) Job rotation assignments shall be properly documented in the associate’s
          records and used as inputs for the associate’s annual assessment.

Temporary Assignment
     Associates may occasionally be given an assignment to fill in a temporary or
     vacant position or to act as reliever for an associate going on extended leaves.
     In cases where the temporary position is approved as full time headcount, the
     position shall be opened internally and the reliever shall be given the
     opportunity to apply for the position, if he/she is interested.

       Implementing Guidelines:
       1) All temporary assignments lasting one month or longer must be
          documented.
       2) The associate who will be given a temporary assignment shall be notified in
          writing, at least one week before start date, and with the start and end
          dates of the assignment clearly stated.
       3) The period of temporary assignment shall vary, depending on the situation.
          In any case, if the assignment shall be extended, the associate shall be
          informed in writing
       4) Where and when appropriate, the associate may claim differential pay
          during said period.

Transfers
Transfer of an individual from one section to another will be a broadening
assignment that may eventually lead to promotion to the next level, depending
on associate’s performance in the new role.

Implementing Guidelines:
1) Associate may have to start from the entry level of the position where he
   transferred, depending on the skills already acquired.
2) Some may be required to undergo the same skill assessment to determine
   level.
3) If training is required, assessment needs to be done after the training period
   agreed upon by the immediate supervisor and the associate to determine
   possible level movement depending on performance on the new assigned
   job.

B. Promotions

    Under the SEP Program
   Under the SEP system, an associate can progress from one ladder to another
   based on his/her job performance and the competencies he/she is able to
   attain and exhibit on the job.

   1. Promotions under the SEP framework will be based on the assessment
      results of employees, which are conducted annually.
      - To ensure a fair, objective and full accounting of skills an associate
           possess, the process requires that the supervisor obtain the inputs or
           concurrence of other supervisors (as applicable) before finalizing the
           assessment scores of an associate for the year. This is also to ensure
           that the assessment standards of line supervisors are calibrated.
   2. Completion of training programs does not translate to a promotion
      relative to the following:
      - Skills acquired through the training programs must actually be
           exhibited on the job
      - Skills acquired must also be executed independently
   3. If an employee’s SEP assessment results show that he has acquired the
      skills worthy of the next higher ladder, then the associate may be eligible
      for promotion for the next ladder, provided that he/she has no pending
      administrative case, which may delay its execution.
      - Admin cases considered should be those with implementing
           decisions/sanctions already
      - Admin cases to be considered are those which warranted at least
           one (1) day suspension
   4. If scores are still within range requirement of his current ladder then he
      stays in his current ladder, with an option to signify his interest to
      undergo training
   5. There is no headcount allocation for each respective ladder under the
      SEP Program, hence an employee may freely be promoted to the
      succeeding provided that his SEP assessment results support it.

      For other vacancies outside of the SEP Program (Team Leader, Exempt
       position vacancies etc.)
   All job vacancies shall be opened, posted and filled as provided for in the
   CBA, except for positions under the SEP, where associates who have been
assessed and certified as high potentials shall be given priority. In assessing
the potentials of associates, their technical and leadership competencies
shall be considered, as well as the special training or developmental
assignments they have been given.

Implementation Guidelines:
1. HR discusses with the hiring manager the need for the position,
    competencies required, job description, lead-time, and who will be
    involved in the selection process. The criterion for selection is agreed on,
    including the “cut-off” score for the overall rating of candidates to be
    included in the final pool of candidates.
2. Job is posted internally, specifying the key responsibilities and minimum
    requirement for the job. Posting duration: 7 days.
3. Screening of all applications based on given requirement is conducted.
    - Most recent SEP assessment score will have to be considered as part
        of the screening process
    - Priority shall be given to those associates on the promotable pool,
        those certified on the skill required. These associates should
        automatically be part of the list of qualified associates to undergo
        initial screening.
    - Candidates are pre-selected based on their fit vs. the competency
        profile of the position in question. The following qualification to be
        considered:
         Functional and technical know how will have to be applied for a
             minimum period or cumulative of six (6) months (on the job)
         Should be performing independently without a “buddy” machine
             operator or mechanic
    - Candidates must meet the minimum established score for them to
        qualify for panel interview and simulation exercise (if applicable).
4. Candidates not selected are sent regret letters
5. Discuss with candidates their candidacy
6. Create an announcement of candidates
7. Qualified candidates go through informal validation interview by Team
    Leader / Supervisor thru use pre-determined questions to draw out
    required competencies (functional, leadership and motivational fit).
    Weight = 60%
8. Candidates are selected based on their overall rating vs. agreed “cut-off”
    rating. Candidates not selected at this point are given regret letters and
    the option to receive one-on-one feedback discussion.
9. OPTIONAL DEPENDING ON THE VACANCY: Selected candidates are sent
    for third party assessment. Tests are structured consistently with
    required competencies. Weight = 40%
10. OPTIONAL DEPENDING ON VACANCY: Top candidate is selected based
    on third party assessment results. Candidates not chosen are given
    feedback on their test results.
11. Create memo to HR to make the necessary documentation for the
    appointment of the successful candidate and an announcement for the
    choice.

NOTE:
When another vacancy occurs, those candidates who were not chosen, even
if they passed the third party assessment, must signify their interest to be
   considered as a candidate for the newly opened position. If the vacancy
   occurs within three months from the time the previous screening was
   conducted, the assessment results of said candidate shall still be considered
   valid. However, the candidate shall have the option to submit to panel
   interviews and third party assessment again if he/she so desires, for the
   purpose of improving, his/her assessment scores.

C. Rewards and Recognition

   1. The compensation aspect of the program will be dealt with in
      accordance with

      -   the provision in the CBA
      -   SEP assessment results and scores which is an indication/gauge of
          the readiness of the associate to assume a job with higher skills
          requirement

   2. Differential pay will be provided for temporary assignment on the job
      requiring a higher level of skills. Only those “certified” with the skills
      required of the job will be allowed to handle the temporary assignment.
      Identification of whether it is lower, equal or higher level skill will be
      based on the skill requirement stipulated in the assessment tools.

   3. Movements such as probable demotion and lateral transfers will not
      affect the basic salary

   4. Non Cash Recognition

      -   SEP Certificate of Training will be given individually for those who
          passed the skills training requirement. This will be part of the 201
          file.
      -   List of those who passed the skill training will be posted on the
          bulletin board. Likewise they will be part of the pool of talents
          accredited for a particular skill. They will be tapped as a possible
          trainor in the future.
                                       ANNEX “B”

                        Alcohol- and Drug-Free Workplace Policy


Background/Objective

         The Company regards the use of illegal drugs and the abuse of alcohol as
serious problems. As a manufacturer of health care and nutritional products, Bristol-
Myers Squibb (Phil.), Inc. has a special interest in the health and well-being of its
employees. It is the purpose of this policy to create an alcohol and drug-free workplace
that will enhance the health, safety, security, and performance of Bristol-Myers Squibb
(Phil.), Inc. and its employees, and in so doing support and contribute to the
government’s campaign against illegal drugs.

Scope/Coverage

      This policy shall apply to all BMS employees, including all candidates seeking
employment with BMS.

Statement of Policies

1. The illegal use, sale, manufacture, distribution, dispensation or possession of drugs
   on Company property is absolutely prohibited. Reporting to work or working while
   under the influence of alcohol or illegal drugs is also prohibited. Further, the use of
   alcohol on Company property is prohibited except in the limited case of Company-
   sponsored social action activities as described in this policy. Violation of this policy
   will result in disciplinary action up to and including termination.

2. All candidates for employment will be required to undergo a pre-placement urine
   drug test as a condition for employment. A medically unjustified positive result for
   the presence of illegal drugs will result in the withdrawal of the offer of
   employment.

3. The Company shall include urine drug testing as part of the Annual Physical
   Examination for employees. An employee who refuses or fails to undergo such test
   without justifiable reason will be subjected to disciplinary action following the
   requirements of procedural due process.

4. The Company reserves the right to conduct random drug testing of employees at
   any time during the year, with each employee having an equal chance of being
   selected for testing.

5. Employees will be required to undergo a urine drug screening test and/or blood
   alcohol test when there is reasonable suspicion to conclude that they are under the
   influence of illegal drugs or alcohol while on Company property or on official
   business. Testing for reasonable suspicion will be conducted:

               (a) when an employee reports for work or appears to be working under
                   the influence of alcohol or illegal drugs;
               (b) when an employee admits to a supervisor as being under the
                    influence of alcohol or illegal drugs while on Company property or
                    on official business, and/or;
               (c) following any workplace accident or other incident which suggests
                   the employee is under the influence of alcohol or illegal drugs.

6. Any report of accident or conviction of criminal offense related to alcohol or drug
   use will be considered grounds for discipline, up to and including termination. This
   does not preclude the Company from also filing the appropriate complaint when
   warranted under the provisions of Republic Act No. 9165, otherwise known as the
   Comprehensive Dangerous Drugs Act of 2002.

7. This policy applies to all employees across levels and regardless of employment
   classification.

8. The Company will treat with confidentiality all medical records of employees with
   cases of alcohol and drug use. Disclosure of such records can only be allowed under
   the circumstances defined by this policy.

9. All officers of the Company shall be responsible for the enforcement of this policy.
   Questions concerning interpretation of this policy shall be referred to the Director
   of Human Resources.

Implementing Guidelines

1. Pre-Placement Urine Drug Screening Test

    All candidates for employment will be notified during the qualifying process that a
urine drug test is part of the pre-employment requirements. Candidates have the right
to refuse a urine drug test, but refusal will result in the withdrawal of the offer of
employment. Submission of an adulterated specimen will constitute a refusal to test
and will result in the withdrawal of the offer of employment.

2. Urine Drug Screening Test Guidelines

a) Testing of urine specimens shall be conducted only by laboratories which have
   received the Department of Health (DOH) accreditation/approval and which follow
   DOH guidelines for testing. This will allow for maximum consistency in operating
   procedures and quality control.

b) All urine samples will be tested for the pertinent drugs classified as dangerous and
   illegal by the government.

c) Collection of urine samples will be conducted by controlled laboratory methods to
   assure security, but will not require witnessing of sample collection.

d) All urine samples will undergo a preliminary analysis for the illegal substances. If the
   test result is negative, the urine sample will be classified as negative and the
   analysis will be concluded. If the test result is positive, the urine sample will
   undergo a confirmatory gas chromatography/mass spectrometry (GC/MS) test. If
   the urine sample tests positive on both the preliminary analysis and the GC/MS, the
   urine sample will be classified as positive. All results will be reported by the
   laboratory to the Company’s Medical Department and to the Director of Human
   Resources.

e) When a urine drug test is classified as positive, the Medical Department will review
   the record and contact the candidate to discuss medical conditions or medications
   that may explain the result. If the Medical Department determines that the result is
   compatible with a valid medical explanation, the candidate will be classified for
   employment in the normal manner. If the Medical Department determines that the
   result is not compatible with a valid medical explanation, the Medical Department
   will report the medically unjustified positive urine drug test to the Human
   Resources. The Medical Department may provide a copy of the report to the
   candidate if requested.

f) All candidates will be informed by the Human Resources that a medically unjustified
   positive urine drug test will result in the withdrawal of the offer of employment
   with Bristol-Myers Squibb (Phil.), Inc.

3) Annual Testing

       The annual physical examination (APE) for employees shall include urine drug
   testing. Hence, all employees must undergo the APE as determined by the Human
   Resources Division. Employees who undergo the APE but refuse to take the urine
   drug test without justifiable reason will be subjected to disciplinary action following
   the requirements of procedural due process. Employees who refuse or fail to
   undergo the APE in order to evade urine drug test without justifiable reason will
   also be subjected to disciplinary action following the requirements of procedural
   due process.

4) Random Drug Testing
       At any given time during the year, the Company may conduct random drug
   testing among its employees. Random testing refers to unannounced schedule of
   testing, with each employee having an equal chance of being selected for testing.
   The random sampling method shall be used for this purpose. The Company shall
   likewise determine the number of employees to be tested. An employee who is
   selected for the random drug test but refuses to undergo such test shall be subject
   to disciplinary action up to and including termination.

5) Testing for Reasonable Suspicion

       Testing for reasonable suspicion will be conducted:

   (a) when an employee reports for work or appears to be working under the
       influence of alcohol or illegal drugs;
   (b) when an employee admits to a supervisor as being under the influence of
       alcohol or illegal drugs while on Company property or on Company business,
       and/or;
   (c) following any workplace accident or other incident which suggests the
       employee is under the influence of alcohol or illegal drugs.

   When testing for reasonable suspicion is required, the employee must be told of
the situation and escorted immediately to an appropriate medical facility. If the
employee refuses to the point of becoming violent, the superior must ask the
assistance of Security. The employee shall remain on sick leave until the test results are
reviewed and a decision made.

    A urine drug screening test will be conducted to detect the presence of illegal
drugs; a blood alcohol test will be conducted to detect the presence of alcohol. Refusal
to be tested for reasonable suspicion will be grounds for discipline, up to and including
termination. Submission of an adulterated specimen will constitute a refusal to test.

    If the alcohol and/or drug test(s) are classified as negative after review by the
Medical Department, the employee will be allowed to return to work and standard
disciplinary practices will prevail for the incident which led to the testing. The only
exception to this is if other evidence exists which identifies the employee who tested
negative as a current illegal drug user. Such evidence must be presented by the Medical
Department to the HR Director and Legal for review. If sufficient evidence exists to
identify the employee as a current illegal drug user, the employee will be subjected to
Discipline/Rehabilitation as described below.

    If the positive alcohol and/or drug test(s) are classified as medically unjustified after
review by the Medical Department, the result(s) will be reported to the Human
Resources Director. The report will be made available to the employee by the Medical
Department if requested.

    In case it is the superior who is under reasonable suspicion, the employee or
subordinate concerned can report the situation to the next line manager. In case the
next line manager is absent, the employee can report it to the next manager following
the organizational hierarchy. This does not prevent the employee however, from calling
the attention of HR directly.

6) Discipline/Rehabilitation

(a) If the alcohol or drug test is a medically unjustified positive, or if sufficient evidence
    exists to identify the employee as a current illegal drug user, the Company, at its
    discretion, may require an employee to undergo rehabilitative treatment. The
    employee will be required to undergo unannounced testing at the worksite, as
    recommended by the treatment facility in conjunction with the Company’s Medical
    Department. An employee who tests positive a second time, is subject to
    termination without further opportunity for rehabilitation. Refusal to undergo
    rehabilitative treatment and/or failure to comply with post-rehabilitation testing
    will result in termination.

(b) The Company, at its discretion, will provide professional, confidential assistance to
    help employees resolve problems with alcohol and drugs that affect their personal
    and work life.

       The Human Resources, through its Medical Department, and the employee’s
       supervisor will discuss the employee’s alcohol or drug problem and develop a
       plan of action. The employee’s supervisor will communicate the agreed upon
       plan to the employee. An employee’s refusal to accept referral and to follow
       recommendations for addressing an alcohol or drug problem may be grounds
       for discipline, up to and including termination.
       An employee may voluntarily turn himself in for alcohol or drug treatment and
       rehabilitation by contacting or directly approaching the Medical Department.
       After conferring with the employee and evaluating the employee’s case, the
       Medical Department shall notify the HR Director and, upon approval of the HR
       Director, discuss the employee’s alcohol or drug problem with the concerned
       supervisor and together develop a plan of action.

       The Company’s share in the treatment/rehabilitation of an employee with
       alcohol and/or drugs problem shall be limited to the employee’s medical/health
       in-patient and out-patient benefits as well as to those which he is entitled to
       under any pertinent company policy and collective bargaining agreement.

       Information regarding the employee’s diagnosis and treatment will not be
       disclosed; any confidential information will be disclosed only with a signed
       release from the employee.

7) Convictions for Alcohol/Drug-Related Criminal Offenses

    Any conviction for an alcohol or drug-related criminal offense will be considered a
ground for disciplinary action, up to and including termination. When an employee is
convicted, the conviction shall be reviewed by Management to determine the
appropriate course of action. Where applicable, all drug-related workplace convictions
will be reported to the appropriate agency of the government, in accordance with the
provisions of Republic Act No. 9165, otherwise known as the Comprehensive
Dangerous Drugs Act of 2002.

8) Employee Training and Education

   The Company shall implement programs to inform employees of this Alcohol and
Drug-Free Workplace Policy. These programs must:

   (a) Educate employees and increase their awareness of the negative effects of
       alcohol and drug abuse on health and safety.
   (b) Train supervisory personnel on their responsibilities for ensuring compliance
       with the Company’s policy and fostering an alcohol and drug-free workplace.

   The education/awareness program may be extended to the employees’ dependents
at the discretion of the Company.

9) Searches

   The Company reserves the right to conduct reasonable searches of any property or
workstation when there is reason to suspect violation of this policy, with prior
notification and approval of the HR Director.

10) Right to Privacy

   The Medical Department shall maintain all information regarding an employee’s
use of alcohol or illegal drugs in a confidential medical record. No information
concerning the employee’s diagnosis and treatment will be revealed by the Medical
Department except in the following circumstances:
   (a) The employee consents in writing.
   (b) The law or a Court of law requires disclosure.
   (c) It is believed that life or safety is threatened by failure to disclose.

11) Company-Sponsored Activities

    Alcohol may be consumed on company premises during company-sponsored
activities, employee picnics, outings, athletic events, company parties, and other social
activities provided such use of alcohol is controlled, discreet, and approved in advance
by Management.

12) Driving Motor Vehicles

    Any operation of a motor vehicle on company business while under the influence of
alcohol or illegal drugs may be cause for disciplinary action, up to and including
termination. Accidents arising from the use of alcohol or illegal drugs shall likewise be
cause for disciplinary action, and the related uninsurable costs to persons and
properties due to the accident shall be borne by the concerned employee.

								
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