Nestle Cabuyao Signs 5-Year CBA (A First in Nestle Philippines)

Cabuyao Factory inked a landmark of a five (5)-year Collective Bargaining Agreement (CBA) on June 23, 2017, (the first ever five (5)-year CBA in Nestle Philippines). Breaking new ground in the continuing enhancement of industrial relations in the Company.

Chairman and CEO Mr. Jacques Reber, Cabuyao Factory Manager Mr. Val Dizon and Nestle Cabuyao Workers’ Union (NCWU-PTGWO) President Mr. Jim Malangis led the signing of the historic agreement. Other signatories were Technical Director Peter Winter, and HR Director Mitzie Antonio.

The signing was witnessed by DOLE-NCM Region IV-A Director II Feliciano Orihuela Jr. and PTGWO National President Atty. Arnel Z. Dolendo. Members of the Cabuyao City Sangguniang Niugan and Banaybanay also graced the important event.

            “Today is a most memorable day for Cabuyao Factory because it marks an even stronger partnership guided by values and rooted in respect”, Val said. “The CBA negotiation we have gone through was not an easy journey, and I laud the union leadership for pursuing what is good for the people. This five-year CBA further enhances the industrial peace and harmony in our Factory so that together, we can focus our sights on achieving our production goals and targets for a stronger Nestle Philippines.”

Cabuyao HR Head Enzo Ziga said most CBAs in the Philippines have a lifetime of three (3) years. “Five (5)-year CBAs, though offering a longer period of industrial calm and stability, still remain a rarity in the country’s industrial relations environment which makes this new Cabuyao CBA a significant milestone in the history of collective bargaining agreements in the Company as well as in the country,” explained Atty. Enzo.

IMPROVED BENEFITS

            The new Cabuyao CBA grants all covered employees with a total wage increase package of Php 12,000.00 spread over five years – Php 3,000.00 in the 1st year, Php 2,500.00 in 2nd year. Php 1,000.00 in the 3rd year, Php 2,500.00 in the 4th year and Php 3,000.00 in the 5th year. It also gives them a lump sum package of Php 135,000.00, which includes a one-time Php 35,000.00 special incentive for accepting the five (5) – year CBA term. The lump sum also includes a recognition bonus for industrial peace (no strike).

The CBA likewise provides for an increase in the medical and hospitalization limits to Php 200,00.00 per illness per year at 85%-15% sharing, a 13th sack of rice, improvements in the Christmas and Birthday packages; and partial disability benefits.

In addition, Management and the Union agreed to hold peaceful discussions to any changes in the Non-Contributory Retirement Plan (NCRP) before such changes are implemented in the future. It may be noted that the two-cycles of industrial unrest in the Factory in 1988 and in 2002, both of which lasted for a decade, flowed from CBA deadlocks over NCRP.

“I am hoping that for the next five (5) years, all of us would be hand in hand for a progressive and prosperous Nestle, and for the next CBA to bring forth more benefits and wage increase to every employee in order for everyone to feel the progress as the company itself progresses”, NCWU-PTGWO President Jim Malangis said in his speech.

Corporate HR Director Mitzie Antonio thanked everyone for helping make the new CBA possible. “Today presents an opportunity for us to re-commit as guardians of our Company. This Five (5) year CBA is indeed a milestone in the history of Nestle Philippines.”

Negotiations for this new CBA began in November 2016 and concluded on Mar 31, 2017 with the technical assistance of the National Conciliation and Mediation Board (NCMB) Region IV.

            Nestle Cabuyao Workers Union (NCWU) is affiliated with the Philippine Trasport and General Workers Organization (PTGWO).

In the current CBA cycle, both Cagayan de Oro and Pulilan (now Froneri Philippines) recently concluded three (3) – year CBAs. Addressing management and union, Jacques said, “At the end of the day, we all want the same thing, and that is a bright future for our respective families. The new CBA provides a fantastic base to build the future of Cabuyao Factory employees, the future of our Company, and the future of our families. For all the dedication, commitment and hard work that led to this new CBA, maraming maraming salamat sa inyong lahat.”

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