Collective Bargaining Agreement

Collective Bargaining Agreement

KNOW ALL MEN BY THESE PRESENTS:

            This Agreement made and executed by and between:

           

            JOLLIBEE FOODS CORPORATION (JFC), a business entity duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with principal address at 5^th Floor, Jollibee Plaza Building, Emerald Avenue, Ortigas,  Pasig City, Metro Manila, whose business activity is operation of restaurants, hereinafter referred to as the “COMPANY”.

            KILUSAN SA JOLLIBEE-KILUSAN, a legitimate labor organization with Registration Permit No. NCR-UR-7-932-92, affiliated with Pambansang Kilusan ng Paggawa-TUCP likewise registered with permit No. (FED-390) 6196-IP, with principal office atTUCP/PGEA Compound, Elliptical Road, Diliman, Quezon City, hereinafter jointly referred to as the “UNION”.

WITNESSETH THAT

            WHEREAS, the UNION is the sole and exclusive representative of the daily-paid rank and file employees of the COMPANY directly recognized by the latter upon submission by the UNION of the list of its members composing more than the majority of the employees constituting the appropriate bargaining unit.

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

            NOW, THEREFORE, for and in consideration of the foregoing premises and of the covenants, undertakings, terms and conditions hereunder set forth, it is hereby mutually agreed by and between the parties hereto as follows:

ARTICLE I

UNION RECOGNITION AND SCOPE

Section 1. The COMPANY recognizes the UNION during the effectivity of this Agreement as the sole and exclusive bargaining representative of all daily_paid employees of the COMPANY within the appropriate bargaining unit as defined in Section 2, Article hereof in respect of rates of pay, wages, hours of work and other terms and conditions of employment.

Section 2. The appropriate bargaining unit covered by this Agreement shall consist of all regular rank-and-file daily-paid employees/workers of the COMPANY. All monthly-paid employees although rank-and-file, are excluded from UNION membership.

ARTICLE II

UNION SECURITY

Section 1. The COMPANY agrees to require the following as conditions of continued employment for all employees covered by this Agreement:

a.      That employees who are members of the UNION on the date of the

Signing of this Agreement or who may join the UNION after signing of

This Agreement shall remain members in good standing.

b.      That employees who may hereafter be employed by the COMPANY shall within fifteen (15) days from attainment of regular status become members of good standing of the UNION and remain as such members in good standing.

Section 2. Members of the UNION who cease to be such members in good standing shall, upon written demand of the UNION, be dismissed by the COMPANY provided that the UNION shall keep the COMPANY free from any liability as a consequence thereof. A member loses his status as a member in good standing for any of the following causes:

a.      Resignation from the UNION, except that appointment or occupying a

Regular position outside the bargaining unit shall be deemed automatic resignation from the UNION without prejudice to his security of tenure;

b.      Non-payment of regular union dues;

c.       Expulsion from the UNION in accordance with its Constitution and By-

Laws; and

d.      Joining, forming or working for another labor organization during the

Term of this Agreement.

Section 3. The mere filling by any member or employee of a case for illegal deduction of for the stoppage of the deduction of union dues, agency fees or other regular deductions against the COMPANY and/or the UNION shall be deemed deliberate refusal to pay the same.

Section 4. Both parties agreed that membership in the UNION should increase as business volume expands progressively. To enable this, both parties have agreed to develop a new salary and benefit package for new regular employees to bring down the labor cost of daily-paid employees.

ARTICLE III

CHECK-OFF UNION DUES AND SPECIAL ASSESSMENTS

Section 1. The COMPANY agrees to check-off or deduct once a month from the wages of the members of the UNION all monthly union dues in such definite amounts as provided for in the UNION’s Constitution and By-Laws, pursuant to a check-off authorization signed by the members.

Section 2. The COMPANY also agrees to check-off or deduct special union assessments from the pay of the UNION members subject to the following conditions:

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

                  Executive Secretary;

c.       COMPANY is notified at least seven (7) working days before payment.

Section 3. The COMPANY shall also check-off from non-union members within the collective bargaining unit an agency fee equivalent to the dues and other fees regularly paid by UNION members, without the need for individual check-off authorization in accordance with Article 246 (e) of the Labor Code and Section 13, Rule xvi, Book V, of its implementing rules and regulations.

Section 4. The COMPANY shall remit check, within seven (7) working days from check-off date, to the Secretary of Finance of Kilusan sa Jollibee-Kilusan or any of its duly authorized representative one-half (1/2) of the total amount of the checked-off dues and agency feees while the other one-half (1/2) will be remitted also by check to the Secretary for Finance of Pambansang Kilusan sa Paggawa-TUCP. The COMPANY, however, shall remit in whole the special assessment to the Secrretary for Finance of Kilusan sa Jollibee-Kilusan within seven (7) working days from check-off date.

ARTICLE IV

MANAGEMENT PREROGATIVES

sSection 1. Consistent with Law and this Agreement, the COMPANY shall have the exclusive right to run the affairs of the business, direct and control the management of the office, plant and personnel including but not limited to the following:

a.      To hire, promote, demote, classify, reclassify, rotate, lay-off, transfer,

Suspend, terminate, or otherwise discipline any worker/employee;

            b.   To make and promulgate rules and regulations governing the conduct of

                   the employees in their relations with the COMPANY, its officials,

                   supervisors, customers, guests, co-employees and the handling of

                   machinery, tools, products, equipments and other COMPANY property.

b.       To designate the work and the employee to perform such work, as well as the right to classify the work for job evaluation purposes;

d.    To set working hours and/or period of operation as well as the

        assignment of workers/employees for such period; and

d.      To do what has been recognized by the law, jurisprudence, or practice

As properly belonging to management.

ARTICLE V

JOB SECURITY

Section 1. The UNION hereby recognizes the COMPANY’s right to hire, transfer, discharge, lay-off or discipline its employees for just causes and in accordance with law. The UNION, however, shall have the right to seek reconsideration of any transfer, discharge, lay-off or disciplinary action affecting any employee within the bargaining unit and such request for reconsideration shall be considered a dispute or grievance to be dealt with in accordance with the grievance procedure provided in Article V of this Agreement.

Section 2. The COMPANY may hire new employees provided such hiring does not jeopardize the employment opportunities of present employees.

Section 3. The UNION and the COMPANY agree that the following terms shall be construed, thus:

                       

“Regular and Casual Employment” – The provision of written agreement to the contrary notwithstanding and regardless of the oral agreements of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking, the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.

                        An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided that, any employee who has rendered at least one (1) yaer of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.

                        “Probationary Employment” – Probationary Employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his agreement. An employee who is allowed to work after a probationary period shall be considered a regular employee.

Section 4. No employee shall be suspended, dismissed, laid-off or discharged except for a just or authorized cause provided by law and after due process. The just cause for dismissals are:

            a. Serious misconduct or willful disobedience by the employee of the lawful

                orders of his employer or representative in connection with his work.

            b. Gross and habitual neglect by the employee of his duties:

            c. Fraud or willful breach of the employee of the trust  reposed in him by his

                 employer nor duly authorized representative;

            d. Commission of a crime or offense by the employee against the person of

                 his employer or any immediate member of his family or his duly

                 authorized representative.

           

            e. Any cause analogous to the above.

The Authorized causes of separation from employment and the

            Separation pay therefore are as provided for by law, except that if the

            Separation is due to illness the separation pay shall be one hundred

Percent (100%) of the basic pay for every year of service.

Section 5. If the COMPANY desires to suspend, lay-off or dismiss an employee, it shall furnish the employee a written notice stating the particular acts or omission constituting the grounds for his lay-off, suspension, or dismissal. The employee may answer the allegations stated against him in the notice within a reasonable period form receipt such notice. The COMPANY shall afford the employee the ample opportunity to be heard and to defend himself with the assistance of the UNION officer or representative before his suspension, lay-off or dismissal unless the employee waives this right.

Section 6. When changes in the organization occur whether due to business expansion or downsizing resulting to transfer and re-assignment of employees, the CPMPANY shall discuss with the UNION matters affecting the members of the bargaining unit.

ARTICLE VI

SENIORITY AND PROMOTION

Section 1. The term “promotion” whenever used in this Agreement denoted a change in position to fill up an existing vacancy in a job of higher rank and higher pay.

Section 2. An employee who is promoted as defined in section 1 above shall be paid the salary or wage rate pertaining to his new position and rank/ or rank on the date of his assumption of duties in such position.

Section 3. The term “seniority” whenever used in this Agreement refers to the length of accumulated service of the employee in the COMPANY which shall be computed from his date of initial employment therein, whether as regular, probationary, temporary or casual employees.

Section 4. When factors pf competence and efficiency are deemed equal, seniority shall be given priority in the consideration of any promotion, lay-off or reduction or work hours of employees.

Section 5. Selection of the employee to be promoted shall be in accordance with the following order or priority:

            a. Employees in the affected outlet/unit;

            b. If there in no qualified employee for the job in the outlet, the selection

                 shall be from COMPANY- wide basis; and

            c. If there is no qualified employee from the COMPANY, then the

     COMPANY shall select from other sources.

Section 6. Notice of vacant position shall be posted in the COMPANY bulletin boards.

Section 7. The COMPANY shall notify the UNION quarterly of newly hired personnel, transfer or promotions.

ARTICLE VII

GRIEVANCE MACHINERY

Section 1. All disputes between labor and management shall be settled through negotiations, unit all points in disputes shall have been discussed and settled grievances are subject to adjustment providing opportunity for discussion of any request or complaint and under the following established procedures for their processing and settlement.

Section 2. A grievance is a different of opinion or a dispute affecting the COMPANY and the UNION or any employee or employees covered by this Agreement on:

            a. Any matter relating to working conditions;

            b. Any matter involving the interpretation or implementing of any provision

                of this Agreement;

            c. Any matter involving the violation of any provision  of this Agreement;

            d. and Any matter that is not satisfactorily settled by other means.

Section 3. Before resorting to the grievance procedure, the employee or employees who have cause for complaint or grievance shall give their respective immediate supervisors the opportunity to adjust the same.

Section 4. In cases involving disciplinary action or matters affecting individuals only, the grievance must be submitted to, and settled at, the appropriate step in the grievance procedure.

Section 5. The steps in the grievance procedure shall be as follows:

First Step                                                               Second Step The grievance                    the outlet                         If the grievance is not               They who shall Shall first be                       manager shall                satisfactorily settled in              settle the issue Threshed out by                make a decision             the first step, it shall                  within seven And between the               within two (2)                 be referred in writing                (7) working UNION’s chapter              working days                  by either or both of                     days after Representative                   after                                  the parties to the local               grievance has And the outlet                    representation                union president and/                been referred Manager                              of the                                 or representative and               to it. Concerned                           grievance                         the VP for HRD or his                                                                                           representative

Section 6. If it will be necessary for a union representative to attend a grievance conference or negotiation during office hours, Article V, Section 3 shall apply. He shall not be considered absent while in the performance there-of provided he notifies his immediate superior one (1) day before the scheduled conference.

Section 7. Accredited Union representative shall be allowed to conduct an inquiry or investigation for the purpose of settling grievances.

Section 8. The UNION may seek reconsideration of any management decision involving employee disciplinary action or other terms and conditions of employment, subject to provisions of this Agreement.

Section 9. The UNION shall keep the COMPANY informed with a complete and up-to-date list of the names of the officers of the UNION, including outlet or unit representatives, members of the bargaining committee and grievance officer of the UNION. The COMPANY shall keep the UNION informed with a complete-up-to-date list of the names of all supervisors and managers of the Management for the purpose of this Article.

Section 10. Any or all issues not resolved in the grievance machinery shall be referred to the compulsory or voluntary arbitration as provided by law and/or the implementing rules and regulations.

ARTICLE VIII

UNION LEAVE

Section 1. The COMPANY agrees to grant per CBA year twelve (12) working days union leave with full pay to each UNION representative to enable them to attend to urgent union matters, labor seminars, conventions, training and other related activities or monthly regular meeting of union officers; provided that, except for urgent union matters, the management shall be notified at least three (3) days before leave is taken. For purposes of this Section, there is one (1) UNION representative for each store/unit. As the need arises, the local UNION president or his designated representative shall be allowed by management to have an additional union leave on COMPANY time.

Section 2. The right to union leave as specified above, when not used by one (1) union officer, shall be transferable to other union officers or, on a case-to-case basis, to union member designated by the UNION board.

Section 3. The COMPANY further agrees to grant leave with full pay to UNION Officers at any given time who will attend collective bargaining negotiations and to shop stewards at the concerned store or unit and the UNION’s Secretary for Grievance who will attend grievance conferences with management in accordance with Article V of this agreement.

 

ARTICLE IX

LABOR-MANAGEMENT COOPERATION COUNCIL

Section 1. The COMPANY  and the UNION agree to create a Labor-Management Cooperation Council (LMCC) which shall take up matters outside the jurisdiction of the grievance machinery, such as Lanor-Management Cooperation schemes to minimize accident, increase work efficiency and productivity, promote workers’ education to make them enlightened and responsible workers and union members, devise ways and means for the reduction of monotony at work, recreational sports and physical activities, job enrichment, seminars and education programs among the employees for the promotion of RPMCH, livelihood and Christmas programs. The council shall be purely advisory and consultative shall be composed of appropriate number of members from the UNION and the COMPANY.

 

ARTICLE X

STUDIES

Section 1. Both the COMPANY and the UNION subscribe to the national objective of the government in Capital-Labor relations, as defined in the Labor Code, of promoting enlightenment of workers and their rights and obligations as employees and the UNION members. Accordingly, in the light of the aforementioned implementation of the same, the COMPANY and the UNION hereby agree and bind themselves as follows;

                        “The COMPANY and the UNION shall jointly promote, organize and conduct a seminar for all employees covered by this Agreement on COMPANY rules and regulations, labor laws and labor relations, occupational health and safety and livelihood projects with both parties, assisting each other in the preparation of training needs analysis, curricula, subject matters and outlines of studies, invitation of lectures and other matters pertinent to the preparation and conduct of the seminars and the expenses to be shared by the COMPANY and the UNION on a 75%-25% basis respectively. The UNION shall provide COMPANY with training evaluation reports post seminar activities and measurements of seminars effectiveness.

ARTICLE XI

REPRODUCTIVE HEALTH

Section 1. Through the LMCC, the COMPANY and the UNION shall jointly sponsor and conduct seminars on Responsible Parenthood, Maternal and Child Health which covers Family Planning, Reproductive Health, Sexual Harassment, Violence against Women, Children and Men.

Section 2. The COMPANY and the UNION will together formulate a policy and program on RPMCH services like Family Planning counseling, provision and use of different contraceptives, assessment and management of diseases related to reproductive system (RTI, HIV/AIDS, STD. etc)

ARTICLE XII

WORK WEEK AND HOURS OF WORK

Section 1. The regular workweek for all employees except part-time employees covered by this Agreement shall be six (6) days.

Section 2. The COMPANY shall schedule the rest day for employees. However, the employer shall respect the preference of employees as to their weekly rest day when such preference is based to their religious grounds.

Section 3. The regular workday for all employees except part-time workers covered by this Agreement shall be eight (8) hours. Provided that, effective upon signing of this Agreement, the present work hours of regular part0time employees consisting of six (6) hours shall not be diminished unless specifically requested by the employee in writing subject to the provision of Article VII, Section 4 hereof.

Section 4. The COMPANY shall allow one (1) hour for lunch or dinner which shall be considered as employee’s time. Likewise, the COMPANY shall allow 15 minutes coffee break which shall be considered working time for every four (4) hours of work.

ARTICLE XIII

WAGE AND BENEFITS

Section 1. The COMPANY shall grant to each employee covered by this Agreement the following Wage and Benefits effective March 1, 2007 to February 28, 2012.

Wage and Benefits

Existing Employeeas of March 31, 2007

New Regular Employee On or before March 31, 2007

1. Wage       1 < 3 years       4 < 5 years       5 < 10 years       10 < 15 years       15 < 20 years       <20 < 25 years       25 years and up

16.00 / day            16.00 / day            18.00 / day            20.00 / day            22.00 / day            24.00 / day            26.00 / day

10.00 / day for the first three years of service during the CBA period      16.00 / day on the 4th year of service

2. Wage Order

JFC Distortion Formula if distortion adjustment is provided by wage order

Per Law

3. 13th Month Pay

Per law

4. Mid Year Bonus	75 % of Basic Monthly Pay	25 % of Basic Monthly Pay
5. Year End Bonus	100% of Basic Monthly pay	50 % of Basic Monthly pay
6. Vacation Leave	1 < 2 yrs        = 10 days 2 < 3 yrs       = 15 days 3 < 5 yrs       = 17 days 5 < 10 yrs     = 18 days 10 < 15 yrs   = 19 days 15 < 20 yrs   = 20 days 20 yrs up      = 21 days	1 – 3 yrs    = 7 days
7. Sick Leave	1 < 3 yrs        = 15 days 3 < 5 yrs        = 16 days 5 < 10 yrs      = 17 days 10 yrs up       = 18 days	1 – 3 yrs       = 7 days

8. Emergency Leave

5 days

3 days

9. Maternity Leaves	Advance payment by the Company of 100% of basic or the amount due from SSS whichever is higher
10. Paternity Leave	7 days
11. EDIS           Just present your ID to the counter person to avail of your discount	25% discount for a maximum of P400.00 per purchase per day in a company-owned outlet.
12. Meal Subsidy and Free Snacks or beverage	Product meal for store employees to include new products, giving due consideration to members of the bargaining unit for reasons owing to religious and health reasons Meal Subsidy reimbursement for service Engineering 2 free snacks or beverage for eight hours work