August 16, 2018

CAGAYAN DE ORO CITY – Atty. Ligaya R. Lumbay, Director II of the National Conciliation and Mediation Board (NCMB), Regional Branch 10 proclaimed the
settlement on August 6, 2018 of the actual strike filed by Valencia Rubbertex, Inc. Labor Union – Association Labor Unions – TUCP (VRILU – ALU-TUCP) against
Valencia Rubbertex, Inc. (VRI).

The actual strike which was declared on July 25, 2018 was successfully settled through team conciliation – mediation process benefiting 192 rank and file
employees with an estimated economic package of P2.86 Million.

The new CBA for the period January 1, 2018 to December 31, 2022 provides for the following wage increases: on the first, second and third year, employees who are 10
years and below will receive ₱5.00 as COLA and those who are 10 years and above will receive ₱8.00 as COLA. These wage increases are on top of any wage
increases to be determined by the RTWPB thru wage orders. Unused vacation and sick leave benefits are also convertible to cash and payable every 15th day of
January of the following year.

Moreover, the company agreed to grant an Optional Retirement for employees who are 10 years and above computed at 18 days per year of service.
The Union represented by Union President Bobby E. Panilag filed a Preventive Mediation on April 4, 2018 on the ground of Collective Bargaining Agreement (CBA)
Deadlock on twenty-five (25) economic benefits. Due to the different positions of the parties, the case materialized into a Notice of Strike on May 15, 2018.

Mr. Noriyuki Onishi, Plant Manager of VRI manifested that the demands of the union are impossible considering the losses of the company in previous years, but he
offered a performance-based incentive bonus.

The Branch conducted series of conciliation – mediation conferences exhausting all available venues in order to arrive at a settlement. This settlement was achieved
through the assistance of DOLE Regional Director Joffrey M. Suyao.

Valencia Rubbertex, Inc. is engaged in manufacturing of vulcanized rubber footwear such as rubber boots and jikataba shoes for export. The company is located in
Casisang, Malaybalay City, Bukidnon.