PSE Circular for Brokers No. 2537-98

November 5, 1998 PSE CIRCULAR FOR BROKERS NO. 2537-98 04 November 1998 PHILIPPINE STOCK EXCHANGE, INC . Listing & Disclosure Group Philippine Stock Exchange Center Exchange Road, Pasig City Attention: Ms . Grace de Guia Supervisor Disclosure Department RE : Prudential Bank Gentlemen : We reply to your request for information concerning the labor dispute between Prudential Bank and the Prubankers Association, the collective bargaining representative of the Bank's rank and file employees nationwide. In May 1998, the Bank and the said Union started negotiations for the renewal of their collective bargaining agreement which was supposed to be effective until 15 May 1998. While the continuing negotiations between the parties resulted in some agreements on both economic and non-economic issues, the parties reached a deadlock in their negotiations on 14 October 1998. The following day, 15 October 1998, the Union filed a Notice of Strike with the Department of Labor and Employment (DOLE). Consequently, conciliation meetings were thereafter conducted by the National Conciliation and Mediation Board (NCMB). As of the last conciliation meeting held on 30 October 1998, however, no settlement of the dispute was in sight. On the same date, the Bank filed a Petition before the DOLE requesting the DOLE Secretary to assume jurisdiction over the labor dispute and thus enjoin the conduct of a strike by the union and its members and thereafter resolve the deadlock issues between the parties. Foremost among the key economic issues is the demand of the union for hefty salary increases over a two-year period, which, as of 30 October 1998, stood at P2,500.00 for the first year of the new CBA; and P1,000.00 for its second year. On the other hand, the Bank could only offer to grant the rank and file employees the following increases for the said two-year period: first year P800.00; and second year P350.00. While the Union is indeed scheduled to conduct a strike balloting today, in the event the majority of Union members vote in favor of a strike, the Union will have to formally file with the DOLE the required notice of strike vote. It may not legally strike against the Bank without observing a seven-day cooling-off period after the filing of the said strike vote. Cdphil We trust that the foregoing account will enlighten you on the current labor dispute in the Bank. Very truly yours, (SGD.) OCTAVIO D. FULE Vice President (Chairman, CBA Management Panel)