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 5th 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.

Section 3. Upon the promotion, transfer or appointment in a permanent capacity to

any managerial or supervisory position, the employee shall automatically be disqualified
or removed from the bargaining unit.

Section 4. The COMPANY shall furnish the UNION with a complete list of daily paid
employees quarterly and notify the UNION of personnel actions, specifically of hiring
and termination activities.

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 for three consecutive months;

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. Newly hired daily paid employees and newly regularized daily paid
employees must, as a condition of employment, become members of the UNION.

Section 4. 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 5. 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.

Section 6. . In the event that a union member is held by the appropriate Court to have
been illegally dismissed by the COMPANY, pursuant to the demand of the UNION
according to this Article, the COMPANY shall not be held liable. The UNION is
responsible for any liability which may arise from said unlawful termination.

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.

Section 5. No deductions, other than those specified above, shall be made from the
salaries and wages of the employees without their written individual authorization.

ARTICLE IV
MANAGEMENT PREROGATIVES

Section 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, equipment 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)
year 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. Upon creation of a new position, the COMPANY shall inform the UNION in
writing. Thereafter both parties shall determine whether or not such employee falls
within the bargaining unit.

Section 5. 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 6. t. The CORPORATION shall not, on any occasion, contract out jobs or
functions regularly performed by the permanent rank and file employees covered by the
CBA.

Section 7. 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 8. When changes in the organization occur whether due to business expansion
or downsizing resulting to transfer and re-assignment of employees, the COMPANY
shall discuss with the UNION matters affecting the members of the bargaining unit.

Section 9.  In case of sale of the business, the CORPORATION is bound to ensure that
the succeeding employer will respect this Agreement.

Section 9.  In case of vacancy of a position, the CORPORATION agrees to consider first
those employees who have indicated their desire in writing to assume the office,
provided they are qualified.
ARTICLE 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/her date of initial employment therein, whether as regular, probationary, temporary
or casual employees.
Section 4. When factors of 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 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 an Arbitrator to be chosen by both the CORPORATION and the UNION, whose
decision shall be final and binding, except when the Arbitrator committed grave abuse
of discretion.
 ARTICLE 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 Labor-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 5 hereof.

Section 4. The COMPANY shall allow the employees covered by the UNION to exercise
a flexible work schedule at least once a month.

Section 5. The COMPANY shall allow one (1) hour for lunch or dinner which shall be
considered as employee’s time. Likewise, the COMPANY shall allow a 15 minute 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, 2020 to February 28, 2025.

Wage and Benefits Existing Employee as New Regular

of March 31, 2020 Employee
On or before
March 31, 2020

1. Wage

      1 < 3 years            20.00 / day      10.00 / day for the first
      4 < 5 years            20.00 / day three years of service
      5 < 10 years            22.00 / day during the CBA period
      10 < 15 years            24.00 / day      18.00 / day on the
      15 < 20 years            26.00 / day 4thyear of service
      <20 < 25 years            28.00 / day
      25 years and up            30.00 / day

2. Wage Order      JFC Distortion

Formula if distortion       Per Law
adjustment is provided by
wage order

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 50 % of Basic Monthly pay

pay
6. Vacation Leave 1 < 2 yrs        = 10 days
2 < 3 yrs       = 15 days
3 < 5 yrs       = 17 days      1 – 3 yrs    = 7 days
5 < 10 yrs     = 18 days
10 < 15 yrs   = 19 days
15 < 20 yrs   = 20 days
20 yrs up      = 21 days     
7. Sick Leave 1 < 3 yrs        = 15 days
3 < 5 yrs        = 16 days     1 – 3 yrs       = 7 days
5 < 10 yrs      = 17 days
10 yrs up       = 18 days

8. Emergency Leave 6 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 14 days
11. EDIS 25% discount for a maximum of
          Just present your ID to the P400.00 per purchase per day in a
counter person to avail of your discount company-owned outlet.
12. Meal Subsidy and Free Snacks Product meal for store employees to
or beverage 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

ARTICLE XIV
RETIREMENT AND SEPARATION

Section 1. The COMPANY shall grant retirement pay as follows:

1.1 At least 10 years of service – one-half month basic pay for every year of
service;
1.2 At least 15 years of service – one month basic pay for every year of
service;
1.3 At least 20 years of service – one and a half month basic pay for every
year of service
1.4 This benefit cannot be enjoyed by any employee who is dismissed for a
justifiable cause.

Section 2.  Any employee who reaches the age of fifty-five(55) years, shall be subject to
compulsory retirement, regardless of length of service in the CORPORATION.

ARTICLE XV
SEPARABILITY

Section 1. Each article herein is separate and independent of each other and is not to
be construed or interpreted as having restrictive and expansive effect upon the meaning,
interpretation, or execution of any other articles of this Agreement, either implicitly,
unless it specifically so provides.
Section 2. In the event that any provisions of this Agreement shall conflict with any
present or future applicable law, the provision of such law shall prevail without however
affecting the other provisions of this Agreement.

ARTICLE XVI
DURATION OF AGREEMENT

Section 1. This Agreement shall be effective for a period of five (5) years from March
01, 2020.

Section 2. Notice of intent to modify the provisions of this Agreement shall be given
not later than 60 days prior to the intended date of negotiation.