Nestlé management, union sign new CBA

The managemment of Nestlé Philippines, Inc. (NPI) and the Union of Nestlé Workers Cagayan de Oro Factory (UNWCF) recently signed a new collective bargaining agreement (CBA) with improved benefits for the union members covered.

The factory, one of six Nestlé manufacturing facilities in the Philippines and the company’s only production site in Mindanao, is the Nestlé ASEAN supply center for powdered filled milk and the hub for Nescafé production in the country. The CBA signing was held at the Xavier Sports and Country Club in Cagayan de Oro City.

Under the new CBA, all covered employees will be granted wage increases of P2,500 per month retroactive from Aug. 1, 2003; P1,100 per month effective Aug. 1, 2004; and P1,650 per month effective beginning Aug. 1, 2005.

Other improvements in benefits covered by the CBA include:

• Increase in the limit of the company’s share in the medical and hospitalization plan to P100,000 for regular cases and P120,000 for exceptional or catastrophic cases. Limits will apply per illness per patient per calendar year after deduction of applicable Philhealth benefits;

• Inclusion of Meningitis vaccine to medical plan subject to 75:25 sharing;

• Increase in Christmas gifts – P2,700 in December 2003, P2,900 in December 2004, and P3,100 in 2005;

• Increase in staff shop purchase limit per employee to P3,000 per month;

• Increase in union leave to a total of 230 man-working days per CBA year;

• Financial assistance, 50 percent to be given in the first 10 days of May and the balance of 50 percent in the first 10 days of December;

• Contributory provident plan for interested members of the bargaining unit under a 50/50 sharing scheme.

Nestle also agreed to unilaterallly grant union members the amount of P25,000 each in consideration of the peaceful and expeditious conduct of the negotiations and non-disruption of company operations.