COLLECTIVE BARGAINING AGREEMENT

COLLECTIVE BARGAINING AGREEMENT     KNOW ALL MEN BY THESE PRESENTS:               This Agreement, made and executed this August 13, 2007 in Pasig City by and between:   RI CHEMICAL CORPORATION, a corporation organized and existing under and by virtue of the laws of the Philippines, having its principal place of business at Pasig City, represented in this ACT by its President, MR. MENELEO J. CARLOS, JR., and hereinafter referred to as the "COMPANY";    - and -   RESINS INC. EMPLOYEES ASSOCIATION (RIEA), a legitimate labor union duly registered with the Department of Labor and Employment (DOLE) under Certificate of Registration No.783-IP issued on August 17, 1970 with principal office at Bagong Ilog, Pasig City, represented in this ACT by its President, MR. GUILLERMO M. SAN JUAN, and its undersigned other duly elected officers and representatives and hereinafter referred to as the "UNION".     WITNESSETH, that:               WHEREAS, the UNION has shown to the satisfaction of the COMPANY that it continues to represent the majority of the daily-paid rank-and-file employees within the bargaining unit as herein defined;               WHEREAS, in view of such majority representation, the COMPANY has continued to recognize the UNION as the sole and exclusive bargaining representative of the employees within the bargaining unit as herein defined.               WHEREAS, it is the general purpose of this Agreement to establish and maintain, under an atmosphere of mutual respect, harmonious relations between the COMPANY and the UNION, to increase the living standards of the employees, to secure the continuous, efficient, economical and profitable operations of the Company’s business, to prevent strikes, slowdowns, lockouts and other disturbances, interferences with or interruptions to the Company's operation, to obtain the highest level of efficiency, eliminate waste and to commit ourselves to making quality a way of life by realizing the maximum quality and quantity output, and to set forth the entire agreement between the COMPANY and the UNION for purposes of collective bargaining concerning rates of pay, hours of work, and other terms and conditions of employment as well as to provide definite means for the amicable settlement of all disputes and grievances that may arise between the COMPANY and its employees in order to guarantee industrial peace during the term of this Agreement;               NOW, THEREFORE, for and in consideration of the foregoing declaration of principles, and of the covenants, undertakings, terms and conditions of employment hereto embodied, as well as for good and valuable consideration herein contained, the parties hereto mutually agree as follows:               Article I   TERM OF AGREEMENT               Section 1a. The term of  the representation aspect of this Agreement shall expire on June 30, 2011.               Section 1b. All other provisions of this Agreement shall become effective and binding for a period of three years, July 1, 2007 until June 30, 2010 without prejudice to Section 1a of  this Article.   Section 2. Within sixty days immediately prior to June 30, 2010, either party may initiate negotiations for the renewal or modification of this Agreement.                             Article II   COVERAGE OF AGREEMENT               Section 1. BARGAINING UNIT. The bargaining unit covered by this Agreement consists of all REGULAR DAILY PAID RANK-AND-FILE personnel connected with the regular manufacturing activities in the employ of the Company at its factory situated in Pasig City and any of its offices, branches or extensions within Metro Manila.               Consequently, the following are excluded from the bargaining unit and, therefore, not covered by this Agreement:    1. Security Guards;  2. Casuals and contractual workers for specific projects not directly connected with the manufacturing      operations of the company like construction projects;  3. Temporary workers and;  4. Probationary employees.               Section 2. DEFINITIONS.    A.   A casual or contractual worker is one hired by the company for a definite or fixed period of time to perform work on a specific project not connected with the regular manufacturing activities of the company.    B.  A temporary worker is one hired by the company to perform emergency work or as temporary replacement of a regular employee who is on leave for not more than three (3) months or hired for future temporary manufacturing jobs involving new business ventures lasting not more than one (1) year from the operation of the new business venture. Such a worker retains his temporary status until the emergency for which he was hired shall have passed or until the expiration of the term for which he had been hired.   C.   A probationary employee is one hired directly by the company on probation for the purpose of occupying a regular position in the Company. Before such a probationary employee becomes regular, he shall be required to serve for a probationary period not exceeding six (6) months. If retained in the service of the company for more than six (6) months, he shall thereafter be deemed a part of the Company's regular force.               Section 3. CORPORATE CHANGES.               In case of merger, consolidation, sale, spin off, reengineering, reorganization or any similar corporate changes, the COMPANY shall ensure that the terms and conditions of this Agreement shall continue to be observed.         Article III   UNION SECURITY               Section 1. All present employees who are members of the UNION as of the signing of this Agreement or who may hereafter join the UNION shall continue and maintain such membership in good standing as a condition for their continued employment with the COMPANY.               Section 2. The COMPANY, upon written request of the UNION, shall terminate or suspend the services of any employee/worker, who fails to fulfill the conditions set forth in the preceding section for any of the following causes:               ( i) Voluntary resignation from the UNION;             (ii) Willful non-payment of UNION dues and other assessments.               Section 3. Preferential consideration in filling up existing vacancies will be given to a qualified kin within the 1st degree of consanguinity of any retired, disabled or deceased employee. Qualification will be determined solely by the company.               Section 4. AGENCY FEES. The COMPANY agrees to collect agency fees from all non-union members covered by this Agreement if such non-union members accept benefits provided under this Agreement pursuant to Art. 248 (e) of the New Labor Code.               Section 5. UNION BULLETIN BOARDS. The COMPANY shall provide a Bulletin Board on which the UNION shall post its formal official notices at such convenient location as the UNION may designate in the dailies locker room, Plant Engineering, Production Area, Materials Handling and Boiler House. The UNION shall not post any document on such bulletin boards containing any inflammatory, scurrilous or intemperate or inciting language derogatory to the COMPANY or its employees.                 Article IV   CHECK-OFF               Section 1. The COMPANY agrees to make payroll deductions of UNION dues and other assessments, including fines, from all members of the UNION following the receipt by the COMPANY from the latter of signed check-off authorization. In the case of special assessments, notice thereof must be given to the COMPANY at least seven (7) days before the check-off date.               Section 2. Each UNION member shall submit to the COMPANY through the UNION an individually signed written authority for deduction. The deductions shall be remitted promptly to the UNION by check drawn to its order.               Section 3. The UNION agrees to hold the COMPANY free, safe and blameless from any and all liabilities arising out of such deductions. Agency fee shall be in accordance with PD 442.     Article V   MANAGEMENT PREROGATIVES               Section 1. The UNION hereby recognizes that the COMPANY shall have the exclusive direction and control of plant operations and the direction and management of its workers.               Direction and control of the plant include, but are not limited to, the right to plan plant operations, to introduce new or improved production methods, facilities and equipment, to set reasonable production standards and enforce them through discipline, to schedule hours of work, to require employees to work overtime, to hire casuals and/or to sub-contract work as allowed by law, establish new jobs, to eliminate obsolete jobs, to relieve employees from duty for lack of work or any other legal reason, and the right to make and enforce plant rules to carry out the functions of management provided such rules do not conflict with or contravene the provisions of this Agreement.               Direction and management of its workers include, but are not limited to, the right to hire or not to hire, to assign employees to work, to transfer employees from one job to another, or from one department to another, to determine employees ability and competence, to reward, recognize, promote, demote, discipline, suspend or discharge employees for proper cause after due investigation by the COMPANY.               The exercise by Management of its prerogatives shall be done in a just, reasonable, humane and lawful manner and not for the purpose of discriminating against any employee because of UNION activities and provided further that the same shall be subject to the grievance procedure.               UNION stewards and UNION officers employed in the plant are subject to the same discipline as any other regular employee in the plant for violation of the company’s Code of Conduct.               The above rights of management are not all inclusive but indicate the type of matters or rights which belong to and are retained by management.     Article VI   UNION RIGHTS AND PRIVILEGES               Section 1. RIGHT TO INFORMATION. The UNION shall be informed and shall receive copies of all COMPANY rules and regulations, personnel policies, appointments, promotions, permanent transfers, resignations, retirements, or dismissals and notice of disciplinary action memo will be furnished by the supervisor to the Union on the same day that the DA memo is issued to the concerned employee and final disposition issued to any union member through the HR Department. Memoranda to employees and all directives related to the employment and affecting the collective or individual interests of the employees covered by this Agreement, may be furnished to the UNION upon its request provided the same are not confidential in nature.               The Union shall have the right to be represented in all investigation the Company may call in connection with a show cause memorandum. However, ensuring union representation is not the responsibility of the Company and lack of representation will not bar the Company from proceeding with the investigation. Disciplining employees shall always be recognized by the Union as a management prerogative.               Section 2. CBA BOOKLET. The COMPANY shall furnish each UNION member with a printed copy of this Agreement within two (2) months from the signing of the same.               Section 3. The COMPANY shall not interfere with, restrain, coerce,  discharge or discriminate against any of its employees because of membership in the UNION, service in any of its committee or any legitimate UNION activity.               Section 4. UNION OFFICE. The COMPANY shall provide the UNION with an office with an entrance independent of management's control and provide free electricity at the union office.               Section 5. RIGHT TO ACCESS. The COMPANY agrees that off-duty elected officers of the UNION or any duly authorized representative shall be given, after prior permission, an access to the COMPANY premises and or workplace of its members for any of the following purposes:   a) To assist and participate in the investigation of a grievance or complaint by a covered employee. b) To interview or ascertain facts with any Union Officer, member or shop steward regarding any investigation against any covered employee.             c) To ascertain whether or not this Agreement is being observed. d) To undertake any such other activities for the purpose of maintaining and promoting good relations and better understanding between the Company and theUnion.               It is understood and agreed upon that this right to access shall be exercised reasonably so as not to unduly interfere with the Company's normal operations.   The union shall file a written request for access specifying therein the purpose, workplace and date/time of access and the names of the persons to be investigated.               Section 6. UNION MEETINGS. The UNION's practice of conducting meetings during work hours in the Dailies locker room and company canteen  shall continue to be allowed. Such meetings shall be attended only by off-duty personnel. The union shall inform the HRD of the day and time of the meeting and submit a list of the off- duty personnel who are attending, if any.               Section 7. PRINTING SERVICE. The COMPANY shall allow the printing of UNION publications in its printing facilities provided: (a) the Union pays for the cost; (b) only office forms will be printed; (c) the COMPANY's printing staff will do the printing and; (d) Union's printing job will be subject to schedules and load. The COMPANY shall also allow the printing of the Union newsletter, subject to conditions (a), (c) and (d) above; provided further, that the Company may refuse the printing of any particular issue of said newsletter if in its judgment the contents will be harmful to harmonious labor-management relationship.     Article VII   NO STRIKE, NO LOCKOUT CLAUSE               Section 1. During the life of this Agreement the UNION shall not engage in strike, picket, boycott, slowdown or stoppage of work or any concerted action that will interfere with any of the operations of the COMPANY. The COMPANY shall not lockout, illegally dismiss or retrench or discriminate against employees, violate this Agreement or commit any form of unfair labor practice.     Article VIII   PLEDGES OF COOPERATION               Section 1. COMPANY'S PLEDGE. The COMPANY recognizes that the success of the overall objective of the Union and the Company depends to a large extent in labor-management cooperative scheme for increased productivity, sharing of the benefits resulting therefrom, worker's education, reduction of monotony of work, job enrichment and recreational activities, and therefore, agrees to conduct studies of the same.               Section 2. UNION'S PLEDGE. The UNION agrees that it will not publish or circulate any false or misleading remarks about the COMPANY, its products, its officers or other personnel. The UNION agrees that it will cooperate with the COMPANY and support company efforts to secure a full days work on the part of each of the employees whom it represents and that it will actively combat absenteeism and other practices which curtail production and will support the COMPANY in its efforts to eliminate waste and inefficiency; to improve the quality of workmanship; to prevent accidents, and to promote goodwill between the COMPANY and its employees. TheUNION expressly recognizes that a good business can be attained only by maintaining a high level of productivity. The UNION and its members will cooperate in attaining such a level of productivity. The UNION and its members shall seek to assist in effectuating economy and the utilization of improved methods and machinery. The UNION, its members and the employees, cognizant of the confidence often necessary between the management of a firm and its employees, agree to hold any and all private matters acquired by its members and the employees in the course of their employment as confidential. The parties agree to accept full responsibility for carrying out all of the provisions of this contract. The UNION agrees that its members shall not absent themselves in groups, thereby preventing normal production. The UNION further agrees that its members will work at any and all times where the exigency of the offices or plant may require it.   Article IX   EMPLOYEE MOVEMENT               Section 1. TRANSFERS. Transferred employees shall suffer no diminution in wages and benefits. Employees transferred to a higher job level shall undergo a training period of not more than six (6) months. The employee shall be informed of periodic increments in pay he will receive, if any, during his training. If, despite his training, the employee fails to qualify for the higher job he will be reverted to his position and pay if applicable, before the transfer.               No transfer of an employee from one position to another shall be made for purposes of discrimination as to sex, race, creed, political and religious beliefs and union activities. Transfer of an employee to and from one department/division/section/branch shall not affect the employee's status of seniority or length of service.               Section 2. PROMOTIONS. An employee who is made to perform work that is a promotion in level for more than six (6) months shall be considered promoted permanently in the new position. In effecting promotions, existing employees of the COMPANY shall be given priority over outsiders, provided they are qualified as determined by management including subjective considerations. When two or more employees are rated equal, seniority shall be the determining factor.               Section 3. LAY-OFFS. Lay-off of permanent employees due to reduction of work and/or other valid cause shall be governed by the following norms:   a.       Notice shall be given to individual covered employees and the Union sixty  (60) days before                        any scheduled lay-off;             b.   Employees concerned could not be absorbed in other sections or departments of the                        COMPANY where they are qualified; c. Where employees concerned are qualified in jobs held by temporary and probationary employees, the latter should be laid off so that concerned employees shall be retained;      d.   Among permanent and regular employees, the least senior in terms of service rendered within a job position shall be first laid-off, provided that voluntary lay-off shall be allowed before said principle is applied; e.  In effecting lay-offs, top seniority status shall be accorded to union officers holding elective positions; among Union Officers, seniority by job position shall prevail.             Before any contemplated lay-off is implemented, the UNION may request the management for a meeting to discuss ways and means in preventing such lay-off.               Section 4. RECALLS. In accordance with letter "d" of the immediately preceding section, recall of laid-off employees shall be governed by the principle of "last out, first in". The recall of laid-off employees shall be given priority over the hiring of new employees. Guidelines for recalls of laid-off employees shall be in accordance with Company policies and procedures. Only qualified employees, as determined by the Company, shall be eligible for recall and shall be admitted by the Company on probationary basis.               Section 5. The Company shall not contract out jobs or services which are necessary or desirable in the usual trade or business of the Company, that will result in the lay-off of existing regular employees.               However, the Company may engage the services of a contractor for works or services not directly related or not integral to the main business or operation of the company including casual work, janitorial, security, landscaping and messengerial services and work not related to the manufacturing process.               Section 6. PERSONNEL RECORD NOTICES. Employees newly hired, promoted, transferred, recalled or reinstated shall receive their respective written appointments stating their position, duties and responsibilities, salary rates and other terms and conditions of employment within thirty (30) days from date of their hiring, promotion, transfer, recall or reinstatement.               Section 7. DUE PROCESS. No employee shall be dismissed, suspended, demoted or reprimanded without any just, lawful and reasonable cause and previous due process.               Section 8. JOB POSTING. The Company shall post notices of vacancies on the bulletin boards to enable interested employees to submit application forms for the consideration of management. Existing employees of the company shall be given priority over outsiders provided they are qualified as determined by management.     Article X   HOURS OF WORK               Section 1. HOURS OF WORK. A normal work day shall consist of not more than eight (8) hours. The present hours of work in the COMPANY shall be maintained; however, the COMPANY may change or reduce the prevailing working hours at its discretion, which changes may affect the entire working force or only a portion thereof should such change be found by the COMPANY to be advisable or necessary in the future either as a permanent or as temporary measure, provided, such change or changes are not intended as retaliatory measures against the UNION and do not contravene the provisions of this Agreement and of existing laws.               Section 2. PUNCTUALITY. All employees must be punctual and must observe such rules as may have been or may hereafter be laid down by the COMPANY for the purpose of effecting control over working hours. The time for stamping cards, the time for washing up after work, dressing and undressing for work etc., shall not encroach upon working hours.               Section 3. SIX-DAY WORK AVAILABILITY. As a matter of policy regarding temporary lay-off of employees due to lack of work, management shall exert its best efforts to provide regular work for its regular employees and shall temporarily lay-off employees only when, in its judgment, prevailing conditions do not warrant continuous regular work for the whole employee force. To implement this policy, management shall, whenever possible, assign other duties to employees who could otherwise be temporarily laid-off or re-assign them - provided that the employees involved suffers no diminution in his basic pay.               The Six-Day Work Availability agreement shall apply only to ordinary working days and excludes special holidays. With regards to availability or non-availability of work during special holidays, the provisions of the New Labor Code shall govern.               Section 4. DAY-LOST PAY. An employee whose original shift schedule is either in the first shift (from 6:00 a.m. to 2:00 p.m.) or second shift (from 2:00 p.m. to 10:00 p.m.) but which original schedule has been abruptly changed by the COMPANY to the third shift (10:00 p.m. to 6:00 a.m.) shall be paid the equivalent of 8 hours of work corresponding to the changed original shift if it is established that the abrupt change in the schedule of the employee resulted in his losing a day's work.               Section 5. REPORTING PAY. An employee who reports for work without previous notice by Management of the absence of work for such day shall be entitled to full pay if the absence of work is due to management's fault or error. If, however the fault lies with the employee or employees then the no work - no pay principle shall be observed.               Section 6. TRAINING AND STAFF MEETINGS. Compensability or non-compensability of in-plant training and plant problem-solving meetings done outside the working hours of employee shall be determined in accordance with the provisions of the Labor Code on the matter.               Section 7. CALL-IN PAY. An employee who has already rendered eight (8) hours of regular work and has gone home or who was on his regular rest day but was called back in order to render overtime work shall be guaranteed a minimum call-in pay equivalent to four (4) hours of overtime work.   Article XI   GENERAL WAGE INCREASE               Section 1. The Company shall grant the following across-the-board wage increases to each of the covered employees:   a.       Effective July 1, 2007 – P38.00 b.       Effective July 1, 2008 – P40.00 c.       Effective July 1, 2009 – P42.00   Section 2. An updated  job and wage classification/evaluation plan shall be furnished by Management to the Union within three (3) months after the signing of this Agreement. Management may consult the Union in this regard, but decisions shall be left exclusively to Management.     Article XII   OVERTIME, REST DAY, HOLIDAY PAY               Section 1. OVERTIME, REST DAY AND HOLIDAY PAY. Overtime, rest day and holiday premium rates shall be as follows:                                       Regular Hours                Overtime                                     (1st 8 Hours)                  (Excess of 8 Hours)                           Regular OT                                30%                         Rest Day            130%               30%                         Special Holiday    130%                         30%                         Regular Holiday   230%              30%                         Regular Holiday                            falling on a                              Rest day              260%                                 30%               It is understood that the OT premium rates shall be based on the applicable hourly or daily wage rates.               Section 2. PAID LEGAL HOLIDAYS. The COMPANY recognizes the following official holidays:                           New Year's Day                                     January 1                         Maundy Thursday                         Good Friday Eidul Fitr                                   Movable date                         Bataan Day                               April 9                         Labor Day                                 May 1                         Independence Day                     June 12                         National Heroes Day                  Last Sunday of August                         Bonifacio Day                            November 30                         Christmas Day                           December 25                         Rizal Day                                  December 30                         National /Local/Barangay Election, Referendum or                                     Plebiscite Day                           Date as designated by law               To be entitled to these holidays with pay, the covered employee must work on the work-day immediately before the holiday, unless he is on authorized leave.               Section 3. The COMPANY shall consider Sabado de Gloria and November 1 as paid legal holidays over and above what is provided by law.     Article XIII   NIGHT DIFFERENTIAL PAY               Section 1. NIGHT PREMIUM. The COMPANY agrees to grant night differential pay equivalent to 25% of the worker's applicable hourly rate for all regular shift work done between 6:00 p.m. to 10:00 p.m. and 35% of the worker's applicable hourly rate for all work done between 10:00 p.m. to 6:00 a.m.     Article XIV   LEAVE BENEFITS               Section 1. VACATION LEAVE.               a. Each employee shall be entitled to annual vacation leave with pay in accordance with the following schedule:                                       Length of Service           No. of Days                            1 year to less than 5 years         17                          5 years to less than 10 years      18                         10 years to less than 15 years     19                         15 years or more                                     20               b. Unused vacation leaves shall be converted to cash at the end of the year in accordance with the COMPANY's Vacation Leave Policy.                         Section 2. SICK LEAVE.               a. Each employee shall be entitled to annual sick leave with pay in accordance with the following schedule:                                                Length of Service   No. of Days                            1 year to less than 5 years         16                          5 years to less than 10 years      17                         10 years or more                                     18                b. Earned and unused sick leaves may be accumulated as reserve up to a maximum of twenty (20) days. Sick leave credits in excess of the reserve but not to exceed 18 days shall be commutable to cash at the end of each attendance year.               Section 3. EMERGENCY LEAVE. Employees and workers covered by this Agreement shall be entitled to an annual five (5) calendar days emergency leave with pay. Such leaves shall be non-commutative but cumulative up to ten (10) days and shall be limited to the following emergencies only:   a.       Death or serious sickness in the family requiring hospitalization - “Family" shall be   construed to include only the duly reported spouse, children, parents, brothers and sisters. Proof of death must be presented. b.   Court Call/Civic Duty - For court appearances and compulsory participation in government  activities. Subpoena or notice from proper government authority shall be required as proof. c.       Paternal Duty - For a married male employee to minister to his wife and/or newborn child. Proof that his spouse delivered a child or suffered a miscarriage shall be required. For the first four deliveries of employees’ lawful spouse, Republic Act No. 8187 shall be implemented. Emergency leave for paternal duty can be availed of from the 5th child onwards. d.        Destruction of Actual Place of Residence of Employee - For repairing the employees residence destroyed by natural calamities like fire, flood, typhoon and earthquake.               e.     Transportation strikes and coup d'etats that result in extreme impossibility to report for work. f.    Emergencies where employee or immediate family is a victim of an accident, robbery, hold-up or kidnapping. For such cases, a police certificate shall be required as proof.   When documentary proof is required, the employee shall submit within seven days of his return to work. Notice must be given before the first working hour of the employee on the day of the absence.               Section 4. UNION LEAVE. The Company shall grant, upon request of the Union, a total of seventy five (75) working days union leave with pay to any Union officer during the period of this agreement for the purpose of attending to Union business and/or Union Seminars provided 48 hours prior notice attested by the Union President be given the Company before the effectivity of such leave and that not more than three (3) members in any one particular department shall take this leave at the same time.               The Company further agrees to grant, upon request of the Union, union leave with pay to any union officer for the purpose of complying with direct calls requiring compulsory attendance from government agencies like the Department of Labor and Employment and the military, provided that the call is directly related to a labor matter, provided further, that the notice requirement hereinabove set forth is observed and proof of the call or summons is given to the company together with the notice, and provided finally, that this leave shall be availed by only one (1) union officer at any given time.   Section 5.SOLO-PARENT LEAVE. The Company shall grant to all covered employees deemed to be a “solo-parent”, who has rendered service of at least one year, a Parental Leave of not more than seven working days with pay. Conditions for entitlement of parental leave shall be in accordance with the implementing rules and regulations of Republic act no. 8972. The seven day parental leave shall be non-cumulative and non-commutative.     Article XV   MEDICAL AND HOSPITALIZATION BENEFITS   Section 1. HOSPITALIZATION PLAN.  The Company shall continue with its Improved Hospital Assistance Plan of January 2, 1989, as improved in May 26,2002. Moreover if, after availment of the benefits under the said plan and Philhealth benefits, an employee still has to pay for hospital expenses exceeding P5,000.00, the Company agrees to shoulder 30% of the amount in excess of the aforesaid P5,000.00. Both parties agree to create a committee at the time of signing of this Agreement, fully represented     by the different sectors of the Company that will convene one month after the signing of this Agreement to discuss modifications to the improvement of the Company’s Hospital Assistance Plan.                     Section 2. NO DIMINUTION OF INCOME BENEFIT.               The Company agrees to pay to the employee the difference between the ECC income benefit and the employee's actual wage for the duration of the ECC coverage to insure that the employee suffers no diminution in income during his incapacity.               If after exhausting his ECC benefit the employee is still not fit to work because of his work-related injury or illness and said employee applies for sickness benefit under the SSS,  the company shall likewise pay the difference between the SSS sickness benefit and the employee's actual wage for the duration of the SSS coverage. If the employee is still not fit to work after exhausting the aforesaid SSS benefit, the company will extend to him a final benefit of 30 days sick leave with full pay.               This no diminution of income benefit does not apply to rest days, other unpaid non-working days and to injuries/illnesses not recognized by ECC as compensable.               Section 3. COMPANY DOCTOR AND NURSE. The COMPANY shall hire the services of a full time doctor and a full time registered nurse for the employees' benefit.               Section 4. FREE CONSULTATION SERVICES. The COMPANY shall arrange with the Company Doctor to provide free medical consultation services to all employees and their dependents.               Section 5. FREE MEDICINES. The COMPANY shall provide to its employees free medicines for fever, headache, diarrhea, colds and other common ailments on a frequency and dosage to be determined and regulated by the Company Doctor. The COMPANY shall ensure that such medicines are always available in the clinic.               Section 6. DENTAL BENEFITS. The following dental services shall be provided by the Company free of charge to the employee:                           a. Consultation/check up, including x-ray                         b. Permanent filling, including laser filling                         c. Oral prophylaxis/cleaning once a year                         d. Normal extraction                         e. Root canal therapy                         f. Wisdom tooth operation                         g. Gingivitis                         h. Treatment i.  Dental medicines and such other dental treatment that may be the COMPANY's duty to  provide under existing legislation.               Legitimate dependents as defined under the Social Security Law (RA 1161, as amended) may avail of oral prophylaxis once a year and normal extraction services, free of charge.     Article XVI   OTHER BENEFITS               Section 1. RICE SUBSIDY. The COMPANY shall grant to all covered employees a rice subsidy of  ONE THOUSAND (P1,000.00) PESOS to each employee on July 1, August 10, September 20, October 30, November 10, December 15, January 20, , February 28, April 10 and May 20.                 Section 2. MEAL SUBSIDY. The COMPANY agrees to grant TWENTY FIVE (P25.00) PESOS meal subsidy to each employee when asked to perform overtime work for at least four (4) hours. This meal subsidy is in addition to whatever overtime pay the employee may be entitled to for working beyond eight (8) hours in any day.               Section 3. PATERNITY AID. The COMPANY shall grant paternity aid to every covered male employee in the amount of P2,500.00 for four availments regardless of the birth number , to cover four births while employed by the company, by the said employee’s legal wife.               Section 4. EMPLOYEE EDUCATION BENEFIT. The COMPANY shall contribute to the Employee's Education and Development Program of the UNION the amount of TWELVE THOUSAND (P12,000.00) PESOS upon the signing of this Agreement.               Section 5. HEALTH AND SOCIAL AMELIORATION BENEFIT. The COMPANY shall contribute to the Health Fund and Social Amelioration Fund of the UNION the amount of TWO THOUSAND FIVE HUNDRED (P2,500.00) PESOS upon the signing of this Agreement.                  Section 6. WORKING UNIFORM BENEFIT.   a.       Management agrees to provide four (4) pairs of maong pants, five (5) white T-shirts without collar and one (1) shirt jack per year for the duration of this agreement to every covered employee. Further, the Company agrees to replace, free of charge, uniforms that are damaged and rendered unserviceable through no fault or negligence of the employee provided the damaged uniform has been issued for not more than one year and is surrendered to the Company. b.       Employees must be in complete uniform when reporting for duty. Otherwise, they may not be allowed to work. c.       Employees who report for duty without the proper uniform or who use their uniform for non-work related activities like playing basketball shall be subject to disciplinary action.               Section 7. SAFETY APPAREL BENEFIT.   a. The COMPANY shall provide safety working apparels to all covered employees as may be required by law or by recognized safety practices. This shall include safety face shields, goggles, gloves, helmets, coats, respirators and shoes. In case of temporary assignments to hazardous work, these safety apparels,specially safety shoes, shall likewise be provided for the duration of the hazardous assignment and, thereafter, returned. b. The UNION, for its part, recognizes the importance of safety practices and shall help management in educating their members in this regard. It is agreed that violators of safety rules shall be subjected to appropriate disciplinary action. c.  The parties agree to create a Safety Committee with one (1) Union representative from each department as members.               Section 8. SHUTTLE SERVICE BENEFIT. In order to maximize the shuttle service presently extended by the COMPANY the UNION may from time to time, conduct the necessary survey and thereafter, recommend to management the best routes to take subject to the considerations of distances to be covered and time constraints.               Regular shuttle service riders who were unable to avail of the shuttle service because they were assigned to work before 6:00 a.m. and/or were discharged from their duties after 10:30 p.m. shall be entitled to claim for reimbursement of their actual transportation fare.               Section 9. RECREATIONAL ACTIVITIES. The COMPANY shall maintain its present practice of providing athletic and recreational activities to its employees.               Section 10. RETIREMENT BENEFIT. A member who has not yet reached his 60th birthday may retire with the consent of the company and be entitled to an early retirement benefit which is a sum equivalent to one (1) month's salary for every year of service based on his terminal pay multiplied by the percentage corresponding to the number of years of service:                            Years of Service Percent                                     0 - 4       0%                                     5 - 7       30%                                     8 - 9       40%                                     10          50%                                     11          55%                                     12          60%                                     13          65%                                     14          70%                                     15          75%                                     16          80%                                     17          85%                                     18          90%                                     19          95%                                     20         100%                                     21         110%                                     22         115%                                     23         120%                                     24         125%                                     25         130%                           Section 11. FUNERAL AID. The COMPANY shall maintain its present practice of providing funeral assistance to its employees as follows:                           a. death of an employee             P4,000.00                         b. death of a legal spouse,                          a legitimate child, parent            P2,000.00               Section 12. 13TH MONTH PAY. Each employee shall be entitled to a 13th month pay as provided for by law.   Section 13. ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE. The company agrees to grant SIXTY THOUSAND (P60,000.00) PESOS to all covered Union members in case of a work-related accident or death.     Article XVII   LABOR-MANAGEMENT COUNCIL               Section 1. SUBJECT MATTER. As the need arises there will be consultations, discussions, and sharing of information between the parties to enable the workers to participate in the company's policy and decision-making processes insofar as said processes will directly affect their rights, duties and welfare. However, matters that are already covered by the collective bargaining agreement or are traditional areas of bargaining, as well as matters that are covered by the Grievance Machinery set forth in this agreement, are not proper subject matters to be taken up at Labor-Management Council meetings.               Management and Union have twelve (12) working days from receipt by the Department Head or Union President to call or convene the LMC.   Sec. 2. The parties, as social partners sharing a common interest in the success and growth of the enterprise and the nation's economy, may take up in the LMC the following areas of management decisions, to wit: productivity improvement, production plans, quality of worklife improvement, occupational health and safety programs, family planning, reduction of work monotony, manpower reduction, cost reduction, energy conservation and community relations.     Article XVIII   GRIEVANCE MACHINERY               Section 1. STATEMENT OF PRINCIPLES. The parties hereby agree that all disputes / controversies between the employer and the collective bargaining agent shall be settled through friendly negotiations, since: -          the parties have mutual interest in and therefore, want to assure the continuity of normal work until all points in the disputes / controversies shall have been discussed and settled, -          an open conflict in any form involves losses to both parties, and therefore every effort shall be exerted to avoid such an open conflict.   In furtherance of the foregoing principle, the parties have hereto agreed to establish a machinery or a set of procedure for the expeditious processing, adjustments and final settlement or resolution of disputes / controversies, hereafter referred to as grievance.   Section 2. DEFINITION OF GRIEVANCE. A grievance is defined as any dispute / controversy between the employer and the collective bargaining agent (affecting any employee covered by this Agreement) with respect to:                        i.       the (meaning) interpretation or implementation of the provisions of this Agreement;                    ii.       any matter relating to terms and conditions of employment;     (interpretation and enforcement of company personnel policies)                   iii.       dismissals, suspension, and any other disciplinary actions.   The maintenance and enforcement of discipline is a responsibility and prerogative of the Company, but disciplinary action shall be for cause. Accordingly any complaint by any particular employee or the Union as to the existence of “just cause” as a basis for dismissal, suspension, and other disciplinary action shall be treated as grievance.   Section 3. TYPES OF GRIEVANCES               1. INDIVIDUAL GRIEVANCE is a grievance that deals with the specific complaint of any particular employee.             2. UNION GRIEVANCE is any dispute or controversy brought up by the Union on behalf of a group of Union members belonging to one or more departments or of its entire membership and shall be raised by the Union President to the Grievance Committee/Disciplinary Action Appeal Board. Once an Individual or Union Grievance has started, it cannot be converted /shifted to the other kind.   Section 4. GRIEVANCE COMMITTEE A Grievance Committee shall be created within thirty (30) days from the signing of the Collective Bargaining Agreement. The committee shall be composed of three (3) representatives from the Union and three (3) representatives from the Company   Section 5. GRIEVANCE PROCEDURE   Individual Grievance CBA & Policies   Disciplinary Action Union Grievance CBA & Policies   Disciplinary Action  Department Head Department Head      Grievance Committee DA Appeal Board Grievance Committee DA Appeal Board        Non-Termination Cases Termination Cases  Voluntary Arbitration Voluntary Arbitration Voluntary Arbitration Voluntary Arbitration DOLE Arbiter    ·         Filing any Request for Appeal must be in writing. ·         Unless otherwise indicated, all Request for Appeal filings seeking to elevate a particular decision to the next level must be filed within 3 working days of the receipt of the decision or event which is being appealed. ·         Unless otherwise agreed upon by both parties, all Appeals should be completed within 7 working days of the receipt of the Request for Appeal, except for Appeals involving Voluntary Arbitration or DOLE Arbiters.   Section 6. DEFAULT A.      Any grievance not presented, initiated, and / or appealed within the time and / or manner provided for in any steps mentioned above should be considered withdrawn or resolved to the satisfaction of the complainant, and the case shall be considered finally closed and terminated for all intents and purposes. B.      An employee offense not acted upon by the COMPANY through a written memorandum within three (3) working days from the time the same was made known to the Company  shall be deemed unactionable. This reglamantory period applies as well as to the Union with regards to complaints against the COMPANY.   Section 7. MINUTES. Minutes of all meetings shall be prepared and be signed jointly by the Union and Management representatives immediately after each meeting.   Article XIX   VOLUNTARY ARBITRATION               Section 1. APPOINTMENT OF ARBITRATORS. Within five (5) working days from transmittal of the notice of intent to arbitrate the party sending the notice shall inform the other party of the name of its chosen arbitrator. Such other party shall in turn have five (5) working days from receipt of said information within which to appoint its chosen second arbitrator. In the event that such a second arbitrator is not so appointed, the arbitrator first appointed shall be the sole arbitrator. Upon the appointment of the two (2) arbitrators as aforesaid, a third arbitrator shall be chosen by the two selected by lottery; or in default of such choice within ten (10) days from the appointment of a second arbitrator, the third arbitrator shall be designated by the Director of the Bureau of Labor at the initiative of either party.               Section 2. FINALITY OF DECISION. All matters concerning the subject to be arbitrated shall be speedily submitted to such arbitrator or arbitrators who shall endeavor to decide the same within a period of twenty (20) days from submission. The findings in writing of the arbitrator or the majority of them in case there are three (3) arbitrators, shall be accepted as final and binding upon the parties hereto, Provided, however, that the arbitrator or arbitrators shall have no power to alter, amend or modify any term or provision of this Agreement.               Section 3. EXPENSES. The expense of such arbitration shall be borne equally by the parties if settled amicably or through a compromise agreement. Otherwise, all expenses shall be borne exclusively by the losing party.   Article XX   FAMILY PLANNING               The parties agree to promote family planning among the workers and employees in the bargaining unit. Towards this end, the company agrees to provide free family planning services to their employees which shall include seminars as may be required by law.     Article XXI   DRUG-FREE  WORKPLACE         In compliance with the pertinent provisions of RA 9165 known as the “Comprehensive Dangerous Drugs Act of 2002”  the parties hereto agree to jointly promote and implement the company’s Drug-Free Workplace Policy of September 30, 2004, copy of which is attached to this Agreement as Annex “A”.     Article XXII   COMPLETENESS OF AGREEMENT               The COMPANY and the UNION hereto acknowledge that during the negotiations and conciliation conferences which resulted in this Agreement, each had the unlimited right and 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 understanding and agreement arrived at by the parties after the exercise of that right and opportunity are set forth in this Agreement. Each waives the right and each agrees that the other shall not be obligated to re-negotiate with respect to any subject or matter even though such subject or matter may not have been with the knowledge of either party at the time this Agreement was negotiated and signed.               All benefits and privileges not provided for in this Agreement but which are now being accorded or may in the future be accorded to the employees are accepted as pure acts of grace on the part of the COMPANY and their continuance shall not be construed as an obligation on the part of the Company subject to existing laws.               IN WITNESS WHEREOF, the parties have agreed these presents to be signed by their respective duly authorized representatives and their officers this 9th day of October, 2004 at Pasig City.              RI CHEMICAL CORPORATION   By:       MENELEO J. CARLOS, JR. President   MANAGEMENT NEGOTIATING PANEL   MENELEO G. CARLOS III Chairman                           Members:          CECILLE M. TERA                                                 MARVIN I. ALCAZAR                                                 JUAN G. SABIT                                                    FELICITO C. CUBIL                                     Assisted by:      Atty. RUBEN S. DEL ROSARIO, JR.                          RICC Legal Counsel           RESINS INCORPORATED EMPLOYEES ASSOCIATION  (RIEA)                                            By:              GUILLERMO M. SAN JUAN President, RIEA  Chairman, Union Negotiating Panel                                                             ENRICO S. SALERA (appointed)                              Vice-President                                       GEORGE D. NICOLAS                                                 Secretary                                                   CELSO S. SANTOS                                                 Treasurer                                                                      Board of Directors:  RICHARD M. MIRANDA                                                 EDMOND Y. LLORENTE                                                 GEORGE T. COSEP                                                 FERNANDO E. AUREUS                                                                                                 Shop Stewards: RENATO P. MUÑEZ                                                 EBINEZER S. SALVADOR                                                Assisted by:     ATTY. DOMINGO T. ANONUEVO Legal Counsel      ACKNOWLEDGMENT   REPUBLIC OF THE PHILIPPINES) PASIG CITY      ) S.S.               BEFORE ME, a Notary Public, in and for Pasig City, Philippines, personally appeared:   Name                            CTC No.                         Date/Place Issued    Meneleo J. Carlos, Jr.                18182474                      02/17/07, Pasig City                    Ruben S. del Rosario, Jr.                       17820530                      01/18/07, Antipolo City  Meneleo G. Carlos III                 23372641                      03/05/07, Pasig City  Cecille M. Tera                         18439265                      02/03/07, Caloocan City  Marvin I. Alcazar                       15191146                      01/19/07, Makati City   Juan G. Sabit                           19239923                      02/04/07, San Juan Metro Manila  Felicito Cubil                            22466462                      05/06/07, Taytay  Rizal                Guillermo M. San Juan              22304088                      02/19/07, Pasig City  Enrico S. Salera                                   16317473                      10/20/07, Angono, Rizal  Richard M. Miranda                   04665042                      08/27/07, Cainta, Rizal  Edmond Y. Llorente                  22347934                      04/10/07, Pasig City  Celso S. Santos                                24496321                           03/03/07  Marikina City  Fernando E. Aureus                  24690695                      09/20/07, Poblacion, Camarines Sur  George D. Nicolas                           12307349                           03/16/07, Binangonan, Rizal  Renato P. Muñez                                     04704952                   07/02/07, Taytay, Rizal  Ebinezer S. Salvador                 18825292                      01/15/07, San Miguel, Calumpit Bulacan   all known to me and to me known to be the very same persons whose names are subscribed to and who executed the foregoing instrument and they acknowledged to me that they executed the same as an act of their free will and deed and the act of the free will and deed of their principals for uses and purposes herein specified.               WITNESS MY HAND AND SEAL this ____ day of ____________, 2007 at ________________ City, Philippines.   ____________________                                                   Notary Public                                                                         Until _________________                                                                         PTR ____________; Issued at __________  on ___________________                                                                         TIN __________________   Doc. No. ____ Page No. ____ Book No. ____ Series of  ____