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NOVEMBER 13, 2018


The company started as the Union Steel Plant Division of Bacnotan Cement Industries, Inc. (Bacnotan), a
pioneer in the Philippine Cement Industry. It began commercial operations in 1963 with a galvanizing
plant in Poro, La Union for the manufacture of Galvanized Iron (GI) sheets, expanding to Ilang, Davao City
in 1968 and to Calamba, Laguna in 1990. In 1993, the steel plant was spun off from Bacnotan as a separate
business unit, and incorporated as Bacnotan Steel Corporation, later renamed UNION GALVASTEEL
CORPORATION (UGC). The company in 1997 established a modern Continuous Galvanizing Line and Color
Coating Line for the manufacture of prepainted galvanized steel coils in Calamba, Laguna.

Today, UGC is the market leader in the manufacture and distribution of prepainted and other galvanized
roofing, and of galvanized steel building products such as building system components like steel deckings,
c-purlins, door jambs, steel trusses, pre-engineered building structures (PEBS) and insulated panels for
commercial, industrial and residential applications. The company has the largest and most diversified
distribution network in the industry, with rollforming plants, warehouses and sales offices in strategic
locations throughout the country.

The Company’s slogan ‘SA TIBAY AT GANDA PANALO KA!’ speaks of an utmost commitment for product
quality and service – that is, making lives better for Filipinos. Its products and services are being used to
construct residential houses, factory buildings, warehouses, business centers, schools and churches.
UGC is a growing company. It continues to expand and explore new possibilities. The company takes pride
of the fact that it has the widest distribution reach, with rollforming plants, warehouses and offices
strategically location nationwide. But the best proof of its growth is actually people. As it always claims,
UGC’s bests assets are the human resources; from the production to marketing to support groups, they
are all equipped with sharper skills and better knowledge. And steps are taken to propel them forward;
the company’s continuous training and development programs give employees opportunities to be the
best of what they can be. The growth of the people is the growth of the company.

Our main purpose is not for productivity and profitability, it is more of creating a positive impact to people,
to the industry and the country. As much as we can, we want to do things that will increase the quality of
life, that will open more opportunities for growth, and that will contribute in nation-building. This is how
we conduct business.

It is not enough that we manufacture high-quality products. What sets us above the rest is the fact that
we create and provide solutions. They should always be relevant and valuable, according to the needs and
demands of our customers, attuned to the changing times. More than claiming that they are all
aesthetically designed for utmost durability, we want our products to be versatile and flexible for various
applications. We consider compatibility to environment and climate change; we consider value for money
by making products all cost-efficient, by delivering our services on time. We challenge ourselves to always
innovate to offer infinite possibilities in the construction industry.
With great sense of ownership, our employees understand that they carry the name of the company,
whatever they do, wherever they go. There’s always the highest degree of honesty and integrity, in how
they operate, in how they deal, in how they serve. Thus, they earn the trust and respect of the customers
and suppliers, of peers in the industry. We have the best people who are not just committed to excellence
and dedicated to customer satisfaction, they are with us in pushing forward the upliftment of life, of
bringing change for the common good.

We always say that not all steel roofing materials are created equal; our carry years and years of expertise
and experience. Our company is esteemed for our distinct manufacturing process. The big difference lies
to three words: Malleability, Consistency and Reliability. Malleability defines the durability and flexibility
of our system and products. Consistency means always leveling up the performance and exceeding
expectations. We value the trust and confidence of our stakeholders, ensures that there will be no
shortcuts, no breakdowns in our business process and procedures.

Lastly, we differentiate ourselves by bringing the highest quality possible through our operational
excellence. We make sure that the technology we have is the best in class. We lead the pack in adopting
global standards by bringing only the finest materials and equipment the world can offer. We are
relentless in discovering and exploring proactive improvements. Our facilities are always upgraded and
expanded to maximize potentials, to acquire additional functions to create diverse product applications.
And yes, even our people, which we consider as our best asset, are always honed and harnessed with
sharper skills and wider knowledge. This is the best technology for us, with sincerest human and personal
touch that sets us apart from the rest of the field.
About forty (40) years ago, Philippine Investment Management Consultants Inc. (PHINMA) and
Bacnotan Consolidated Industries, Inc. (BCI) envisioned expanding beyond cement manufacturing
and becoming the country’s major producer and supplier of construction materials. Its first step
towards accomplishing this vision was to enter the business of steel roofing sheets. A steel plant
was then established in San Fernando, La Union in September 28, 1963.

As market for roofing sheet continues to grow, the company set-up steel plans in other religions:
Davao City in 1968, Tabaco, Albay in 1986 and Calamba, Laguna in 1990.

In 1993, as the demand for pre-painted roofing sheets was also improving, the company
established its first color-coating line in Calamba, Laguna. It was also in 1993 that GI sheets
business was spun off into Bacnotan Steel Corporation (BSC), a wholly owned subsidiary of BCI.

In 1996, BSC installed the second color-coating line in Davao to meet the market demand for pre-
painted roofing sheets in southern Mindanao. In the same year, the Davao plant earned its ISO
9002 certification, the first in the Philippine GI sheets industry. Subsequently, the la Union plant
was also ISO 9002 certified.

1997 was another milestone for the company. A modern Continuous Galvanizing Line was
installed in Calamba to enable BSC to be more competitive in terms of product quality and
operational efficiency. The company’s color line in Calamba was also upgraded to a continuous
coil-by-coil operation to attain better quality color coated sheets and coils.

In 2001, the company has been renamed UNION GALVASTEEL CORPORATION, in which identifies
its core business of galvanizing steel materials and brings closer to its market leading UNION brand
of galvanized and pre painted sheets.

In line with its commitment to total quality and customer satisfaction, an ISO 9002 Certification
was issued for the production lines of Calamba, Laguna including its Marketing Operations in June


“We are Union Galvasteel.”

“We will make lives better with innovative
construction solutions contributing to nation building.”
“Creating communities where people live, work and prosper.”
We will create value for everyone we serve by:
 Providing our shareholders sustainable and respectable returns.
 Providing our customers integrated quality construction products and services through a
strategic distribution network.
 Providing a work environment for our employees that ensures safety, uplifts well-being and
creates an atmosphere for the development of skills, productivity and growth.
 Being a responsible corporate citizen with high ethical standards, upholding integrity, trust,
professionalism and environmental stewardship in the community.
Sense of Ownership
Cultivate a sense of ownership and belongingness among employees to foster work ethics of
dedication, hard work, and teamwork.
Provide the best and most efficient way of performing our tasks individually and as one team for
the best interests and welfare of our stakeholders.

Put a high regard to the values of honesty and integrity in the conduct of our affairs.

Encourage the exchange of new ideas and contribute to the process of continuous improvement

Quality and Environmental Management System Policy

“We are in the business of producing galvanized and pre-painted coils and sheets for commercial,
industrial and residential purposes. In accomplishing our core business mission, we value the
importance of responsible management of our environment and the protection of the health,
safety and well-being of the community where we operate.”
“Our commitment is to produce and market these products and provide services that consistently
meet quality standards and ensure total customer satisfaction and encompasses effective
protection and conservation of our environment.”

In support of this commitment, we believe that:

 Quality is everybody’s responsibility.

 All our actions are anchored on teamwork and continuous improvement.
 We shall do our jobs right the first time and all the time.
Personnel Policies

The company shall hire competent personnel for the right job regardless of age, sex and
religion. Internal hiring is favored as a way of recognizing existing employee’s talents and
capabilities. Should there be a need for news kills and ideas which can be sourced only from
the outside, then external hiring may be considered.

Hiring an employee is dependent on the approved manpower plan for the operating year. The
normal categories are regular and probationary employment. In some instances, the company
may also hire casuals or project-based employees depending on the need and operation of the

1. The normal work hour is eight (8) hours a day. The company reserves the right to change the
work schedule with compliance to labor standard, or suspend work on certain occasions, due
to inclement weather, or other emergencies.
2. The work shifts are as follows:
Office 8:00 AM-5:00 PM
Production/Operations 12:00 MN-8:00 AM
8:00 AM-4:00 PM
4:00 PM-12:00 MN
12:00 NN-8:00 PM
3. The break schedule shall be one hour for lunch time, and fifteen minutes each for coffee
break in the morning and in the afternoon.


A Flag Raising Ceremony is held every Monday both in Base 1 and Base 3 starting at 8:00 AM.
This is facilitated by the assigned Department Personnel. Every first Monday of the month, a
combined Flag Raising Ceremony is done either in Base 1 or Base 2 (in other areas, the Flag
Ceremony is done during first Monday of the month).

1. UGC is equipped with Finger Priint Scan Timekeeping machine, which shall be used by all
employees of the company in recording their work attendance
2. Should the employee be required to work off-plant, the employee shall use the Attendance
Sheet in recording their working time.

Attendance is governed by the timekeeping policy as well as the Plant rules and regulations

Absenteeism is the failure of an employee to report for work for any cause. Such absences
may fall under the categories of vacation leave, sick leave, maternity leave, paternity leave,
leave of absence with pay (excused) or absence without official leave (unexcused), and
bereavement leave.

 VACATION LEAVE must be approved two (2) working days prior to its schedule.
 SICK LEAVE notice must be given to immediate superior within the first four (4) hours of
work schedule. Upon return to work, employees must file his leave of absence form. Sick
leave of more than three days require doctor’s certificate to be attached to the leave
 TARDINESS shall be subject to salary deduction when an employee arrives 10 minutes
after the designed work shift. Four (4) counts of tardiness in a month shall be ground for
disciplinary actions.

 UNDERTIME is when the employee is not able to able to complete the required eight (8)
hours of work. Even if the under time is authorized, it is still subjected to salary deduction.
 OVERTIME work is the work rendered beyond the regular working hours, or the work
done on the rest days and on working holidays. Request for Overtime must be pre-
approved by the Supervisor at least two (2) hours prior to its schedule. All authorized
overtime rendered by the employee is paid according to the Labor and Wage Standards.

The company pays all regular employees theirwages for any of the following legal and special

 Regular Holidays
New Year’s Day - January 1
Maundy Thursday - Movable Date
Good Friday - Movable Dtae
Araw ng kagitingan - April 9
Labor Day - May 01
Independence Day - June 12
Bonifacio Day - November 30
Feast of Ramadan - Movable Date
Christmas Date - December 25
Rizal Date - December 31
 Special Holidays
All saint’s Day - November 1
Last day of the Year - December 31
Local holidays in the areas

The company pays the salary of all employees twice per month on the following cut off and payroll

Payroll dates Cut-off Dates

1st payroll 10th of the month 21st to 5th
2nd payroll 25th of the month 6th to 20th



The company ID’s must be worn at all times while within the company premises, conspicuously
on the chest portion of the uniform for easy identification. Lost / damages ID’s must be reported
to HRD immediately.
The company’s prescribed uniform must be worn when reporting for work. The “no uniform, no
ID, No Entry” policy shall be strictly implemented.
Smoking is allowed only in the designated smoking area, and definitely cannot be alone inside the
The company telephones are strictly for business use only. Personal calls, although paid by the
employee, shall be minimized. Telephone courtesy must be maintained all the time.
Personal visitors shall be entertained in the lobby or in the canteen, as much as possible.
Locker assignment to employees assigned in Operations are given by the HRD for temporary
safekeeping or personal belongings. However, valuables must not be kept inside the lockers for
security purposes. Locker must be kept tidy at all times, the company may conduct inspection
Employees should keep their work areas and offices clean and orderly at all times.
1. employees are expected to be properly groomed when reporting for work and while within the
company premises. Proper hygiene must be maintained all the time.
2. for male employees, wearing of earrings, visible tattoos and long hair is prohibited.


The company provide opportunities for the continuous development and growth of its employees
through skills enhancement (upgrading of competence) and personality development. Trainings are
given in order to meet desired level of competences, and to meet the continuously changing needs
of business and processes.


The company believes that the organization’s human resources are its most vital asset, and UGC has
established a Performance Appraisal system for determining employee performance, rewards and
development needs. The Performance Appraisal shall be based on the employee’s Key Performance
Indicator (KPI). This was designed to minimized based and subjective judgement through the use of
“Point Rating System.”


All employees who have reached five, ten, fifteen, twenty and twenty-five and up to continuous and
regular employment with the company are usually given a service award and recognized through a
special ceremony. Awarding normally coincides with the anniversary of the company.


An employee who resigns is required to submit Resignation Letter at least thirty days in advance, to
enable the company to lookback for qualified replacement.

A resigning employee is required to make a complete turn-over of this responsibilities to the successor,
and clear himself of all accountabilities with the company. Clearance shall be released as soon as all
accountabilities had been cleared and approved by authorized signatories.


All retiring and resigning employees are required to undergo an Exit Interview to be conducted by
Plant Safety Rules and Regulations Safety and Health

General Guidelines
All accidents or unsafe and hazardous conditions must be reported immediately to the supervisor or
to department heads.


1. Employees shall wear personal protective equipment when handling materials to prevent injuries.

2. Operational Employees are required to wear safety shoes in all work areas in the Galvanizing Line,
color Line, Shearing and Forming Line and in Maintenance shops where potential hazard exists from
harmful contacts and where there are hazards of injury to the feet.

3. Employees must use appropriate high tension rubber gloves, rubber mats, and other suitable
insulated materials for protection, when working on live electrical circuit or when handling high
tension switches.

4. Employees shall wear appropriate eye protection equipment whenever they are exposed to the
hazards of eye injury.

5. Employees assigned to work in places where there is danger to health due to harmful
concentration of dust, fumes and other toxic substances, e.g. pickling acids, ammonia-sulphur fumes,
paints, thinners, etc. must wear appropriate respiratory protective equipment.

6. Employees exposed to excessive noise must wear suitable devices to protect their hearing.

7. Employees must wear safety belts, harnesses, straps and lifelines in places where there is hazard
of falling or slipping to a dangerous height.

8. Personal protective equipment shall be maintained in good working order and in a sanitary


1. No employee shall be permitted to work or undertake repairs on any plant machinery while it is in

2. Only authorized employees shall operate, adjust and repair plant machinery and equipment.
Apprentices or new employees shall be under close supervision.
3. The operator shall see to it that the working area is cleared of men, materials and other obstacles
before starting any stationary or mobile equipment.

4. Operators shall not operate plant machinery unless they are in good order and al safeguards are
in place and in proper working conditions.

5. No employee shall remove, displace, damage or destroy any machines or tools unless he is familiar
with it and duly authorized to do so.

6. No employee shall remove, displace, damage or destroy any safety devices or guards, or other
appliances furnished for his protection or the protection of others.

7. Employees shall not walk nor ride on conveyor belts or chains in motion at any time.

8. No employee shall work or stand under suspended crane or forklift load at any time.

9. It shall be the responsibility of the employee and the supervisor concerned to return all machine
guard after the job on the equipment/machine is completed.

10. Conveyors shall not be used in transporting men other than raw or finished materials.

11. Employees shall not climb over or pass under the conveyor belt/chain, clean the conveyor deck
or clean drums or rollers when the conveyor is in operation.

12. Employees shall not clean floors below conveyor system unless using suitable tools such as water
jets, push brush or the like.

13. Employees shall not repair nor service conveyors while in operation.

14. Employees shall not wear loose clothing, long sleeves near or around revolving/rotating
machinery, equipment and parts.


1. Employees shall not leave garbage, materials, tools, machine parts and scraps in their work areas,
walkways, platforms and stairways.

2. Employees shall not smoke in the Stores, near fuel storage tanks, the entire color line building and
in areas where flammable materials are stored. Smoking is allowed only in designated areas.
3. It shall be the responsibility of the maintenance personnel and the supervisor concerned to clean
up the workplace, walkways and stairways free from spillage, machine parts, scraps and other scrap

4. It shall be the responsibility of the maintenance personnel and the supervisor concerned to clean
up their workplace of leftovers or cuttings such as lumber, steel, welding butts after the job is


1. Employees shall store in separate and in appropriate areas highly combustible materials like paints,
lacquers, chemicals and the like.

2. Employees shall store rolling objects properly blocked or wedged.

3. Employees shall store heavier materials on the lower levels, and the small easily handled objects
in the upper levels.

4. Employees shall store materials in such a way that these will not obstruct fire extinguishers, first
aid equipment, stairways and electric switches and fuse boxes.

5. Employees shall not store acetylene and oxygen cylinders near sources of heat, such as kettle area,
furnace pit, machine shop or other areas where open flames welding or gas cutting is present, or
near highly flammable substances like gasoline, thinners, solvents, etc.

6. Employees shall pile and store materials in an orderly manner and secure these properly to prevent
them from falling, sliding, rolling, etc.

7. Employees shall watch fingers, keep clear of pinch points when carrying materials through

8. Employees shall not lift/carry loads more that his normal carrying capacity.

9. Employees shall not lift with their legs nor with their backs when lifting heavy loads.

10. Employees shall keep hands free of oil and grease when handling materials.

11. Employees shall wipe off greasy, wet, slippery or dirty objects before trying to handle them.
12. Employees shall inspect materials from silvers, jagged edges and rough or slippery surfaces
before handling them.

13. Employees shall wear gloves when handling materials with rough, sharp, slippery or jagged edge
to protect the hands from possible injury.

14. Employees shall carry long objects, like pipe bar stock or lumber, over their shoulders, with front
held as high as possible to prevent striking other employees, especially at corners.


1. Only authorized employees shall undertake the operations and maintenance of mechanical and
electrical machinery and equipment.

2. At least two employees shall work together in hazardous objects/areas such as working with or
close to live conductors. When it is necessary for an employee to leave his companion, the person
left behind shall work only outside the hazardous area.

3. Employees shall temporarily provide cover guards, warning signs and other safety devices before
leaving an unfinished job.

4. Only authorized employees shall work on switchboards and control rooms and warning signs shall
be posted.

5. Employees shall wear rubber gloves and other necessary safety equipment when working on
energized electrical conductors or equipment operating at more than 110V to ground.

6. Employees shall not use metal ladders while working in areas near energized electrical equipment.

7. Employees shall check branch circuits, protective devices and circuit grounding system before
starting to test-run electrical equipment. Waste materials and tools shall be removed.

8. Employees shall shut off power when making examinations, repairs or alterations of light or power
circuit. When this is impractical, the approval of the supervisor shall be obtained and necessary
precautions shall be taken to prevent accidents

9. Employees shall use fuse holder or approved rubber gloves when removing or replacing fuses.
Fuses and disconnectors shall not be pulled unless loads or the circuits are removed.
10. No one shall work or stay under any high voltage distribution line or transmission lines especially
during storms.

11. Employees shall not wear rings, jewelries, watches or metal chains and such articles which may
be caught in moving parts of machineries or come in contact with electrical circuits.

12. Employees shall close covers of protective devices of electrical circuits and machinery such as
enclosed switches, circuit breakers and motor starter before switching on.

13. It shall be the responsibility of the employee, before working on posts, to see it that the post is
free of any defects that may cause them to give away. Defective posts shall be supported until
replacement is made.


1.Authorized operators of forklift or cranes shall ensure that personnel and equipment are in the
clear before the forklift or crane is moved.

2. the forklift/crane shall be moved to a safe distance when not in use or when under repair.

3.The fork/ attachments of forklift/ crane, whether empty or loaded, shall not be swung or moved
over personnel and equipment.

4. When the unit is not in use, the fork/attachment shall be lowered on the ground or placed on
stands in the case of C-hock and coil handling attachment for cranes.

5.Operators shall always be on the alert to the change of slides or falling of materials, ie.CRC,GI and
PPGI or palets loaded with finished product of second during loading and unloading operators.

6.Operators shall see it that the back-up lights/horn are always in good working order.

7. Unauthorized persons shall be prohibited to ride on the forklift.


A. Use and Care of Hands Tools

1.Employees shall not use detective tools. They shall be repaired or replaced.

2. Employees shall only use approved and suitable tools or tools for suitable job.

3. Employees shall carry tools property to avoid possible injuries.

4. Employees shall keep tools properly during and after use. The tools shall not be left lying around
the work places where they may cause injury to anyone.

B. Working on Top Platforms and Scaffoldings

1. Employees shall not work directly above other workers except in cases of absolute necessity and
in such cases, all precautions shall be taken to ensure the safety of a men below.

2.When employees are working overhead:

a. No employees shall be permitted to pass and stay underneath.

b. Materials and tool not be thrown or dropped without first making sure that no one shall
be injured, if practicable, materials and tools shall be lowered with rope.

c. Proper notice/tags to be placed to warn others of job above.

3.It is prohibited to leave loose materials such as bottles, cans, metals, and wood scraps along
passageways, platforms and scaffolds.

C. Welding Operations

1. Only authorized employees shall operate and use welding and cutting equipment.

2. employees directly engaged or assisting in welding or cutting operation shall use proper and
adequate protective equipment.

3. Flammable materials such as gasoline, alcohol, varnish, paints, grease, oil rags should be removed
from the welding areas. When there are combustible materials, within the range of falling welding
slags, these should be properly covered with suitable fireproof materials.

4. Welding machines shall be located at a safe distance from any tank or wash tank containing oil.
Commutator sparks are dangerous.

5. Welding machines that gets out of order shall be reported immediately to the Supervisor.

6. allow the work place to cool sufficiently before attempting to enter it.

7. In cases of long welding intervals leaving the work site or changing cable connections to the
terminals., power should be switched off.
8. welding cables should be regularly inspected for defects or insulation damage and those found
defective or damaged should be turned in for repair or replacement.

9. Welding cables should not be hung on sharp objects on metals such as nails, angles etc. nor
secured with G.I wires or uninsulated metals.

10.Never drop tanks, nor permit them to roll against each other. When transporting or handling
oxygen or acetylene tanks, the value protection cap should always be in place.

11. Oxy-acetylene cylinders shall always be held in an upright position and properly secured.

12. Employees shall not be place cylinders in the path of falling sparks when working overhead.

13.Employees shall not use cylinders as working benches, rollers, supports or for any other purposes
other than other uses.

14. Employees shall not permit a direct flame or electric arc to contract any part of a compresses gas


1. Firefighting equipment shall be used exclusively for fire-fighting.

2. Water shall never be used on any electrical fire.

3. Welding and cutting torches shall be turned off when not being handled.

4. Welding close to highly flammable materials, such as paint, oil, gasoline, etc., if it cannot be
avoided, shall be done only under close supervision and that appropriate fire extinguishers shall be
available for immediate use.

5. No vehicle shall be refueled until its engine is off, and no smoking or open flames shall be permitted
in the refueling area.

6. It is prohibited for anybody to tamper and/or play with any fire protection equipment.


1. Employees must keep desk drawers closed to prevent tripping over them.

2. Employees must avoid “octopus” connections as this is highly dangerous

3. Employees must remove form power source the plug of all electric office machines and equipment
during work break periods and after office hours.

4. Drawers of filing cabinets must not be opened simultaneously but instead one at a time to prevent
falling towards them.

5. Running or horseplay in offices is prohibited.

6. Employees shall not stand within the path of the door swing.

7. Scooting across the floor while sitting on a chair is prohibited. Leaning out of the chair to pick-up
objects on the floor is also dangerous and should be avoided.

8. Do not leave knife blade of paper cutter in the raised position. Do not leave breakable objects to
the edge of desks or tables when they can be easily pushed off.

9. Office machines and equipment should be operated only by authorized persons. Machines and
equipment should not be cleaned or serviced while they are in operation.

10. Materials should not be stored in place where heavy traffic exists. They should be stored in a
place where they are not likely to fall on anybody. Nothing should be allowed on the floor where it
could be a tipping hazard.

11. File materials neatly and firmly to prevent them crumbling on the floor or fall over. The heaviest
and largest pieces should be on the bottom of the files. Where materials are stored on shelves, heavy
objects should be on the lower shelves.

12. Employees should not stock boxes, papers and heavy objects on filing cabinets, desks and window
ledges or place these materials carelessly on shelves.

13. Card index files, dictionaries, or other heavy objects should not be kept on top of file cabinets
and other high furniture. Movable objects such as flower pots, boxes and bottles should not be
allowed on window sills or ledges.

14. Razor blades, thumb tacks and other sharp objects should not be thrown loosely into drawers.
They should be carefully boxed. Blades and pointed objects must be kept in suitable containers.
15. After office hours, lights, office machines and air conditioning units ust be off from source to
prevent electrical fires and conserve energy. Maintain only sufficient lighting to illuminate the

16. Littering in work premises should not be allowed. Spilled liquids must be wiped off immediately.

17. Broken glass must be swept immediately and disposed off in a safe place.

18. Employees must report tripping hazards such as defective floors, rugs, floor mats, electric or
telephone chords to the maintenance personnel for immediate replacement and/or repair.

19. Employees shall not place lighted match sticks or cigarette butts in waste baskets.

20. Employees shall not smoke in rooms where records are kept.


Union Galvasteel Corporation (UGC) implements various strategies and policies in order for them not
just to deliver quality goods to people, but also to deliver sound, effective, and efficient results from
the workplace by the workers.

Common themes on the development of policies and strategies are:

1. Customer/Market
2. Shareholders/Major Stakeholders
3. People
4. Processes
5. Partners/Resources
6. Society

Union Galvasteel Corporation has implemented various strategies in conformance to the company’s
requirements, namely:

 Quality and Environmental Management System Policy

 Personnel Policies
 Training and Development
 Performance Appraisal
 Plant Safety Rules and Regulations Safety and Health

Union Galvasteel uses the critical elements of a good performance measurement framework (PMF).


To establish leadership and commitment, the company assigns leaders per department, per cluster or
area and per regional market. Each manager and supervisors have a sworn integrity pledges; managers
are also beings called for the Budget Execution meeting to formally commit to deliver the targets for the

Board of Directors Company Officers/Executives

Mr. Victor J. Del Rosario - Chairman Eduardo A. Sahagun - President and CEO
Mr. Oscar J. Hilado - Vice Agripino M. Roranes - Executive Vice President
Chairman (Chairman - PHINMA) Romulo A. Salanga - Vice President - Production
Mr. Ramon R. Del Rosario Jr. - Director Corazon M. Sta. Ana - Vice President - Finance
(President and CEO - PHINMA) Inocencio E. Aquino - Vice President - Sales
Dr. Magdaleno B. Albarracin Jr. - Director Manuel A. Alvior - Assistant Vice President
Mr. Eduardo A. Sahagun - President & CEO - Rollforming and Distribution
Mr. Arthur M. Florendo - Director Beatriz M. Balagot - Assistant Vice President -
Mr. Edward S. Go - Director Production
Mr. Roberto M. Lavina - Director German R. Costales - Assistant Vice President
Mr. Jose Mari M. Del Rosario - Director - Comptroller
Dr. Meliton B. Salazar Jr., Ph.D. - Director Efren M. Delid - Assistant Vice President - Customer
Atty. Santiago F. Dumlao Jr. - Director and Technical Services
Gabriel Anton S. Del Rosario - Assistant Vice President
- Marketing
Robert James G. Pabustan - Assistant Vice President
- Supply Chain


The company ensures that everyone is a vital part of the organization. For the production department,
every morning they do pre-operational meeting. Per area, they have weekly coordination meetings to
discuss the week’s performance to re-align actions towards realization of the team target.

Further, the company practices the employee involvement through company outing, fellowship activities
like joining zumba and fun run and during flag raising ceremony where employees are encouraged to
share insights about monthly topic. With this, sharing of ideas can be a good work practice.


Expectations are always based on the set annual budget, with re-aligned targets month by month to cope
up in times when the company under attain the budget.

The company measures daily reports such as daily sales, daily collections, and daily production level;
monitors weekly and monthly reports such as sales reports, cash reports, inventory report, and credit
reports; evaluates and improves performance through those that are apart from the monthly financial
report package.

(See appendices for full details)


The company undergo internal and external auditing. Standards are maintained internally by the audit
committee which includes the executives and the internal auditing team from Phinma. Externally, the
company is being audited by SGV.


The company normally do a benchmarking process. The sales people, together with the CTS department
or any UGC representative, discreetly buy from competitors and send the samples to head office for
destructive testing. It will help the company identify the physical advantages of each product and compare
the results to the existing product and eventually use it for improvement. Same process is done for price
advantage analysis.


To maintain its excellent performance, the company institutes annual system reviews for major changes.

Certifications such as but not limited to ISO 9001:2008; ISO 14001:2004, certification from Bureau of
Product Standards and Eco Switch Performance Awards for 2011-2012; 2013-2014, Green Ratee Laguna
Lake Development Authority for 2009-2012 and Outstanding Pollution Control for year 2011 & 2014.
Philippine Government Electronic
Procurement Services (PhilGEPS) Certificate
Philippine Government Electronic Philippine Green Building Council Member
(Metal Decking)


(Light Metal Frames) (Duratherm Panel)


Processes Management- Deployment of a common high-level process framework throughout the

organization gives many benefits in the company, including presenting ‘one company’ to the customers
and suppliers, lower costs and increased flexibility, particularly in terms of resource allocation. It also
allows organization among the company for them to be more responsible and more efficient in their tasks.

Union Galvasteel have process flowcharts per department. Each process has designated time frame.
Reviews are conducted to improve processes. Major changes have been set during the time when offline
database is converted into online system under oracle- ERP. Development of such are combined efforts
of process owners. Moreover, suggestions for improvements are always welcome.

Flowcharting is used to arrange the sequence of steps required for the operation of the programme. Each
processing step contains a description of the relevant operation in shapes, and where the process ends -
a point where the process branches because of a decision shown by a diamond. A parallelogram relates
to process information but is not a processing step. The arrowed lines are used to connect symbols and
to indicate direction of flow.
The very act of flowcharting will improve knowledge of the process, and will begin to develop the
teamwork necessary to find improvements.

Start End

Process Step



Business process re-engineering is intended to fundamentally and radically change what is done; it is
dynamic. Therefore, it is essential for a BPR effort to focus on required customers which will determine
the scope of the BPR Exercise. A simple requirement may be a 30 per cent reduction in costs or a reduction
in delivery time of two days.

Union Galvasteel’s production processes, also known as Rollforming and Distribution, underwent business
process re-engineering. In order to meet the demands of customers, they replaced their old process of
cutting materials from 4 x 8 feet per piece into long span based on customers’ desired lengths before,
workers add color to the products, sheet by sheet of 4 x 8 feet; 4 x 10 feet; 4 x 12 feet. Now, Union
Galvasteel does it on a coil by coil basis.

Union Galvasteel conducts various tests in order to improve their products and their levels of quality. For
an instance, the dry films used by the company are assessed to evaluate the paint on how it will perform
once it has been applied on its properly prepared substrate. Some of these tests are conduct for long
periods of time while the rest can be done in the laboratory for shorter periods.
Another example of the tests to improve the quality is the flexibility test. For this test, the T-Bend Test
with Adhesion Test is used, where bending sheet metal over a defined radius allows an indication of the
elongation and adhesion of a paint film due to bending stress. Through this, it determines the ability of
the film to resist cracking, chipping, and forming.
To test the product’s durability, Union Galvasteel uses the impact test and the hardness/scratch resistance
test. It does not just test the product’s durability, but also tests whether the coating/film of the product
would hold up for a long time while under abuse by other factors. It also simulates the actual indention
during installation.

The hardness/scratch resistance test identifies a product’s ability to resist indention/scratch, which could
affect quality and performance of the product. For this test, the pencil hardness method is used where
the surface hardness is defined by the hardest pencil grade which just fails to mar the paint film. By
marking the product with a hard pencil, the hardness and scratch resistance capability of product is tested
and proven.
In addition to tests conducted inside the laboratory, Union Galvasteel also tests the products outside
known as the “Accelerated and Natural Weathering Test” where they put the products under test against

To test whether the products are resistance to corrosion, ultraviolet light, and to nature as well, Union
Galvasteel uses various machines to test the products, as well as conduct tests outside for final checking.
The corrosion resistance test employed by UGC uses salt spray for corrosion testing of protective coatings
on steel. To begin with, the product is exposed to a machine which produces a 5% salt fog at 35 degrees
Celsius for 500 Hours and 1000 Hours.

After achieving the allotted time, the selection begins, where the product is assessed for any quality
defects and malfunctions, as shown in the picture above.
To test the product’s capabilities against weather conditions, a natural exposure test is conducted, where
weather conditions such as rain and sun tests the product’s ability to hold up against nature. In order to
better facilitate the process, UGC has two exposure areas to test the products: the Calamba Exposure
Area and the Poro Exposure Area.

The quality management system should apply to and interact with all processes in the organization. It
begins with the identification of the customer requirements and ends with their satisfaction, at every
transaction interface. The activities may be classified in several ways- generally as processing,
communicating, and controlling.

The 4 major areas of integration are:

i. Management responsibility
ii. Resource management
iii. Product realization
iv. Measurement, analysis, and improvement

Quality Management Systems (QMS) Design for Union Galvasteel is already incorporated into an oracle
system. The head office can easily generate & check branch performances anytime they want to if there
is strong internet connection. Therefore, the company coordinates with its other departments and
branches to be updated about the current status of their production and sales, as well as to improve their
quality and processes through feedback by their customers.


Continuous improvement is a term in common use throughout most industries and the public sector. It
can become a meaningless term unless it is linked to organizational strategy, has a defined structure, a
chosen approach, a methodology and an associated tool kit.

Lean approaches are designed to eliminate non-value added time and Six Sigma approaches are designed
to reduce variation, so a combination of the two can provide an excellent ready-made solution for the CI
approach- the so-called Lean Six Sigma or even Lean Sigma. This can be provided by the traditional Six
Sigma method of DMAIC stages- Define, Measure, Analyze, Improve, and Control.

Define- the scope and goals of the process to be improved, in terms of the customer requirements and
the processes that deliver them.

Review- understand the ‘as-is’ processes and measure the current process performance to appreciate the
‘value add’ and ‘waste’.

Investigate- analyze the gap between the current and desired performance, prioritize problems and
identify root causes

Verify- generate the improved solutions, including the ‘to-be’ processes, to fix the problems and prevent
them from recurring

Execute- implement the improved processes in the pathway in a way that ‘holds the gains’
Reinforce- capitalize on the improvement by ‘learning the lessons’ and establishing a re-assessment
process for continuous improvement.

Union Galvasteel employs the kaizen principle of doing things. They do not stop from okay or good; rather,
they believe that everything they do including our products and services can still be improved.
In addition to this, Union Galvasteel has their own research and development program in charge of
continuous product innovation plus a customer and technical service department who measures the
performance in terms of internal & external customer satisfaction ratings.

Successful organizations share a fundamental philosophy to value and invest in their employees.
As of Union Galvasteel, it considers its human resources as its most valuable asset. The company
believes that it shall provide opportunities for uplifting the well-being and create an atmosphere
for the continuous improvement of skills and growth of its employees.
Selection and Recruitment
Union Galvasteel hires competent personnel for the right job regardless of age, sex and religion.
The company favors internal hiring as a way of recognizing existing employee’s talents and
capabilities. On the other hand, external hiring is also considered if a need for new skills and ideas
can be sourced only from the outside the company.
The company hires employees depending on the approved manpower plan for its operating year.
The normal categories are regular and probationary employment. In some instances, the
company also hires casuals or project-based employees depending on the need and operation of
the company.
Initially, new employees undergo basic orientation programs and trainings are also conducted to
align employees with the policies. For every violation of the employee handbook, it is dealt
accordingly starting with a request for written explanation.
Skills and Competencies
The company provides opportunities for the continuous development and growth of its
employees through skills enhancement (upgrading of competencies) and personality
development. Trainings are given in order to meet desired level of competencies, and to meet
the continuously changing needs of business and processes.
Training strategies starts with basic employee orientation. Union Galvasteel has a Career Entry
Program (CEP) as formal training in its main plant. The company also has Management
Development Programs (MDP) wherein supervisory levels are trained to become future
Appraisal Process
Union Galvasteel believes that the organization’s human resources are its most vital asset, and it
has established a Performance Appraisal system for determining employee performance,
rewards and developmental needs. The Performance Appraisal is based on the Key Performance
Indicator (KPI) and Key Result Areas (KRA) of every employee in each department. This was
designed to minimize biased and subjective judgment through the use of “Point Rating System”.
For instance, the company’s sales people’s performance is measured through its monthly sales
volume and contribution margin. For production department, it is being measured by
productivity and yield. For finance, performance is being checked if the finance department
submits accurate and complete reports on time, if it does not, it is accountable to incur any
government penalties pertaining taxes.
Organizing People for Quality
In maintaining quality people, Union Galvasteel has annual personnel assessment by supervisors,
where skills and attitudes are being rated in line with the company core values.
The company also applies the principle of Kaizen which gives emphasis on encouraging everyone
in the company to make continuous improvement. Union Galvasteel has its own Research and
Development Department in charge of continuous product innovation; a Customer and Technical
Service Department who measures the company’s performance in terms of internal and external
customer satisfaction ratings.
With Union Galvasteel, it is a never-ending journey centered on the concept of starting anew
each day with the principle that methods can always be improved.
Employee Reward, Recognition and Benefits
Employees of Union Galvasteel who have reached five (5), ten (10), fifteen (15), twenty (20) and
twenty-five (25) years and up to continuous and regular employment with the company are
usually given a service award and recognized through a special ceremony. Awarding normally
coincides with the anniversary of the company.
Accordingly, employees of Union Galavasteel are also given employee benefits such as:
1. Leave Benefits e.g. vacation leave, sick leave, maternity benefits, paternity leave;
2. Company Uniform – provided to all probationary and regular employees in order to maintain
a high standard of professionalism and company identity.
3. One (1) Sack of Rice – is given on a monthly basis to all regular employees of the company.
The start of availment is upon regularization;
4. Work Extension Allowance – is granted to supervisory employees only in cases of work
exigencies, emergencies and similar conditions, and is not allowed immediately after Vacation
Leave or Sick Leave;
5. Transfer Incentive Pay – is given to a non-supervisory employee upon transfer to a temporary
vacancy when there is no personnel to discharge the functions of that position.
6. 13th Month Pay – payment made to all employees of the company, given into two (2) equal
payments in April and November, computed on a pro-rated basis.
7. Medicine and Hospitalization Reimbursement – under certain terms and conditions, this
provides all regular employees with financial assistance, by allowing the employees to reimburse
from the company their personal medical expenses. These benefits are extended to the
employees’ legal dependents like parents, brother and sister for single employees; and spouse
and children for married employees.
8. Accident Insurance Benefit – aims to relieve the employees’ immediate family members of
financial burden which may arise in the event of an accident causing death or dismemberment
during employment.
9. Funeral Bouquet or Wreath – provides employees who suffer the demise of immediate family
members with the funeral bouquet or wreath.
10. Hepatitis B Vaccine – all probationary and regular employees are entitled to Hepatitis B
screening, and three (3) does of Hepatitis B Vaccine.
11. Meal Allowance (Per Diem) – employees who are required to be on official business trips
shall be provided with meal and lodging allowances. However, meal allowance shall not be
12. Housing Assistance – aims to assist a regular employee in his basic needs of owning a home
through establishment of a revolving fund to cover the reservation fee or part or the down
payment for an employee.
13. Retirement Plan – provides all regular employees with appropriate retirement benefits from
the company when they rich the retirement age under the company’s retirement plan
administered by a Trustee.
Effective Communication
Union Galvasteel practices open, transparent and extensive communication to ensure that
company issues are being discussed and given upward feedback. It uses official Union Galvasteel
email aside from gmail and yahoo mails through which customers, shareholders, financial
communities and the general public can exercise a regular two-way communication with it.
The company also has a communication tree, a layered hierarchal communication model used to
notify specific individuals of an event – typically unplanned in nature – and coordinate recovery
if necessary, which is very important especially in times of emergencies. Results of meetings of
managers are cascaded up to lower ranks through “town hall” meetings. In this way, information
can reach a large number of people in a short time. A communication structure is provided below:
Employee Empowerment and Involvement
To encourage employee commitment and involvement, successful organizations place great
importance on empowering their employees. As of Union Galvasteel, it gives various incentives
in the form of cash or non-cash items. Employees receive monthly congratulatory messages from
their executives everytime they hit their targets for the month; a free meal or a boodle fight is
also organized to celebrate small achievements.
As per the Corporate Values of Union Galvasteel, the company seeks to cultivate a sense of
ownership and belongingness among employees to foster work ethics of dedication, hard work
and teamwork. Union Galvasteel seeks to provide the best and most efficient way of performing
the company’s tasks individually and as one team for the best interests and welfare of the
company’s stakeholders.

 Clear responsibility
 Achieve targets or objectives
 Kaizen Principle


 Common sense of purpose  Accepted – By team

 Supportive environment – By leader
 Sense of achievement  Valued – By team
– By leader
 Self-assessment
 Sense of responsibility

1. Task. Union Galvasteel sets a clear target of achieving and therefore providing reliable and
steady supply of high quality products specifically galvanized and pre-painted roofing system
materials to its customers. It therefore seeks to yield on materials being produced in order to
minimize wastage rates.
2. Team. To achieve the set objectives, the group needs to be held together. Therefore, people
in Union Galvasteel works in coordinated fashion in the same direction. The employees
communicate well the objectives and methods of every process that is to be taken up in order to
arrive at right performance.
3. Individual. Every employee is encouraged to exercise continuous improvement. This can only
be done through self-assessment and having sense of responsibility. Every individual has the
responsibility to participate in every task assigned to him. In Union Galvasteel, people has to
prevent rather than to detect errors thus, in order to achieve this, the company trains the
individuals in accordance to their KPI’s and KRA’s.

Very Senior Management

Strategic Decision

Middle Management

Tactical Decision

First level supervision and quality

team leaders

On-the-spot Decision

All other employees

Actual Performance

Total quality management is integrated into the strategy of Union Galvasteel through an understanding
of the core business processes and involvement of the people. The company starts with the vision, goals,
strategies and mission which is agreed and shared in the company. TQM embraces all the areas that helps
the organization deliver its goals and; strategy and targets. All were made possible with the people who
are part in the company and their identifying, understanding, managing and improving processes- the
things that the organization has to do particularly well to achieve its objectives.