COLLECTIVE LABOUR AGREEMENT

BETWEEN

MeRVAL

WOODBRIDGE FOAM CORPORATION

FILE No. 38 ':5.- Q \_ct~.,~l 1-·

Kitchener, Ontario

GERT.I'ILE AND

GERT.DATE

TOTP.LEMPS 10n Eff. DATE 0 I- j UL- Z005

EXP. DATE ;;)('),. "\ u~-.1- zOOf$ CODING CONTROL DATE .CODER

UNITED STEELWORKERS !DENT COOED _..8i0 \~ ~,.,,, -~:u~

On Behalf of its Local 83 8 RECEIVED-I·· I I EMPLOYER r ~·ION LOTHER

July 1, 2005 to June 30, 2008

WOODBRIDGE FOAM CORPORATION

Kitchener, Ontario

AND

UNITED STEELWORKERS

On Behalf of its

Local838

Collective Labour Agreement ......................................................................................................... 1

Letters Of Understanding ............................................................................................................. 36

Welfare Benefit Plan .................................................................................................................... 46

Pension Benefit Plan .................................................................................................................... 67

Note: All text in bold indicates wording changes since the previous contract.

INDEX COLLECTIVE AGREEMENT

Page

ARTICLE I PURPOSE 1

ARTICLE II RECOGNITION 2

ARTICLE III MANAGEMENT 2

ARTICLE IV UNION SECURITY & 3 DEDUCTION OF DUES

ARTICLEV UNION REPRESENTATIONS 5

ARTICLE VI GRIEVANCE PROCEDURE 6

ARTICLE VII HOURS OF WORK & OVERTIME 8

ARTICLE VIII PAID HOLIDAYS 12

ARTICLE IX WAGE POLICY 13

ARTICLE X SENIORITY 18

ARTICLE XI VACATION 26

ARTICLE XII GENERAL 29

ARTICLE XIII DURATION OF AGREEMENT 32

APPENDIX "A" JOB DESCRIPTION & 33 HOURLY RATES

APPENDIX "B" COST OF LIVING 35

LETTERS OF UNDERSTANDING 36

SUPPLEMENT -PLANT RULES 43

COLLECTIVE AGREEMENT TOPICAL INDEX

Note: All text in bold indicates wording changes since the previous contract.

Section Page

Address Change ............................................................................................................. 10.02 18 CallBackPay ................................................................................................................... 9.08 15 Clean-Up ........................................................................................................................... 7.10 10 Discharge Clause .............................................................................................................. 6.09 8 Funeral Pay ....................................................................................................................... 9.06 14 Grievance .......................................................................................................................... 6.01 6 Harassment ........................................................................................................................ l.02 1 Holidays, Statutory ........................................................................................................... 8.01 12 Holidays, Qualifications for .............................................................................................. 8.02 12 Hours of Work, Normal ................................................................................................... 7.01 8 Injury Pay ......................................................................................................................... 9.09 15 Job Security ..................................................................................................................... l0.03 18 JuryDuty .......................................................................................................................... 9.07 15 LayoffProcedure, Indefinite ............................................................................................ 10.06 19 LayoffProcedure, Temporary ........................................................................................ 10.12 21 Lead Hand Duties ............................................................................................................ 12.04 30 Leave of Absence, lllness ................................................................................................ 10.19 Leave of Absence, Maternity ........................................................................................... 10.20 Leave of Absence, Union ............................................................................................... 10.24 Loaned Employee ........................................................................................................... 10.13 Management Function ....................................................................................................... 3.01 Meal Allowance ............................................................................................................... 9.14

24 24 26 22

2 16

Overtime, Regular ............................................................................................................. 7.03 9 Overtime, Saturday or Sunday ........................................................................................... 7.04 9 Overtime, Scheduling ........................................................................................................ 7.12 10 Pay Day ........................................................................................................................... 12.02 30 Payment, Meetings at Company Request.. ........................................................................ 5.05 5 Payment, Negotiating Committee ..................................................................................... 5.04 5 Payment, Work on Holidays .............................................................................................. 8.07 13 ProbationaryPeriod ......................................................................................................... 10.01 18

Topical Index (cont.)

Section Page

Recall ............................................................................................................................ 10.06 19 Reprimands ..................................................................................................................... 3.04 3 Rest Periods ............................................................................................................ 7.08-7.09 9-10 Rest Periods-Overtime ................................................................................................... 7.11 10 Safety Apparel ................................................................................................................ 12.01 29 SafetyCommittee ........................................................................................................... l2.05 30 Shift Premium ................................................................................................................. 9.13 16 Short Work Assistance Program . ....... .. . ...... ..... .. . ... . .......... .... .. . .... ....... ....... ... ... .. .... .. .. .. ... 9.15 16 Suspension Clause ............................................................................................................. 6.09 8 TransferPay ..................................................................................................................... 9.11 16 TransferRights ................................................................................................................ l0.16 22 Union Deductions ..................................................................................................... 4.04-4.05 4 Union Po stings ................................................................................................................. 4.10 5 Union Representatives, Passes .......................................................................................... 4.09 4 VacancyPostings ........................................................................................................... 10.16 22 Vacation, Minimum Payment... ...................................................................................... 11.08 29 Vacation, Scheduling . .. .. . . ... . .. .... ... ... ... .... .. .... ... .... ....... ....... ... .... ....... .. ....... ...... ......... ...... 11.03 27 Vacation, Terminating Employees ................................................................................. 11.05 28 Wages, Starting ................................................................................................................ 9.03 13 Wages, Reporting for Work ............................................................................................. 9.05 14 Work, Bargaining Unit .................................................................................................... 12.06 31

COLLECTIVE LABOUR AGREEMENT

This Collective Labour Agreement made and entered into this July 1, 2005 by and between WOODBRIDGE FOAM CORPORATION, Kitchener, Ontario, hereinafter called the "Company" and the United Steelworkers, on behalf of its Local #838 thereof, hereinafter, referred to as the 11Union 11

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ARTICLE I PURPOSE

1.01 It is the mutual desire of the "Company" and the "Union" to promote co-operation and harmony between the Company and its employees, and the Union, and to provide an amicable method of settling differences which might arise hereunder.

1.02 Both Company and the Union are committed to providing a workplace free of discrimination or harassment. Employees must not engage in discrimination or harassment based on prohibited grounds. Prohibited grounds are race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, same sex partnership status, age, record of offences, marital status, family status or handicap.

1.03 The Union and the Company recognize that harassment is a cruel and destructive behaviour against others that can have devastating effects.

Personal harassment is any form of improper comment or conduct that is known, or ought reasonably to be known as unwelcome, including when an employee believes that they have been treated unfairly or disrespectfully.

Sexual harassment is any unwanted attention of a sexual nature such as remarks about appearance or personal life, offensive written or visual actions like graffiti or degrading pictures, physical contact of any kind, or sexual demands.

Racial harassment is any action, whether verbal or physical that expresses or promotes racial hatred in the workplace such as racial slurs, written or visually offensive actions, jokes, or other unwanted cormnents or acts.

If an employee believes he has been subjected to harassment and/or discrimination on the basis of the above definitions, the employee may bring the incident fonning the basis of the complaint to the attention of his Union representative and/or Supervisor or to the Human Resources Manager on a confidential basis. If the employee's Union representative, Supervisor or Human Resources Manager cannot, to the satisfaction of the employee, deal with the complaint, the employee is encouraged to submit his/her complaint in writing to a Joint Committee.

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(b) A Committee for investigations will be comprised of two representatives for the Union and two representatives for the Company, jointly selected by the Union and the Company.

(c) Representatives from the Union and the Company will be appropriately trained regarding harassment and discrimination issues and investigations. The full Joint Committee will establish a procedure for expediting investigations, which will form part of the Collective Agreement.

ARTICLE II RECOGNITION

2.01 The Company recognizes the Union as the exclusive bargaining agent for all employees of the "Company" at its plants located in the cities ofKITCHENER and WATERLOO save and except foremen, foreladies, persons above the rank of foreman, forelady, office and sales staff.

2.02 Wherever the masculine gender appears in this Agreement, it shall be construed as meaning male or female, unless the context in the Section requires otherwise.

ARTICLE III MANAGEMENT

3.01 The Union recognizes that the operating of the plant and the full direction of the working forces is the exclusive function and responsibility of the Company without restricting the generality of the foregoing.

(a) The Union recognizes the right of the Company to operate and manage the number and location of its plants, the products to be manufactured, the scheduling of its production and its methods, processes, means of manufacturing, kinds and location of machines, tools to be used, the engineering and designs of its products and control of materials and parts to be incorporated in the products produced.

(b) The Union further recognizes the right of the Company to hire, retire, promote, determine qualifications and capabilities, transfer, demote and lay off employees and to suspend, discharge or otherwise discipline employees for just cause, maintain order, discipline and efficiency and to determine and establish standards of performance for all machines, employees and operations.

3.02 The Union recognizes that the Company has the right to establish and/or alter reasonable rules and regulations which are herewith attached, and which are to be observed by employees. The Company will notifY the Unit Chairperson of any change, addition or deletion to such list. Such Rules and Regulations shall not be inconsistent with this Agreement.

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3.03 An employee may be reprimanded, suspended or discharged for infractions of Rules and Regulat'.ons referred to in Section 3 .02 and such action may be appealed in accordance with the provisions of this Agreement.

3.04 Reprimand notations placed on an employee's record by the Company must be signed by the immediate supervisor and by the employee as having been read. If the employee refuses to sign, the Union Steward will sign on the employee's behalf. When the supervisor calls an employee with the intent of giving such employee a reprimand, he must give the employee the opportunity ofhaving his Union Representative in attendance, if the employee so desires. When an employee wishes to question or dispute such reprimand, he must invoke the grievance procedure within five (5) normal working days, and if the employee's grievance succeeds, such reprimand will be revoked.

Verbal reprimands, if no further discipline of a similar nature is issued within twelve (12) months, will be disregarded in the administration of discipline. Written reprimands and suspensions, if no further discipline of a similar nature is issued within twelve (12) months, will be disregarded in the administration of discipline. lllegal work stoppages, slowdowns and strikes, if no further discipline of a similar nature is issued within two (2) years, will be disregarded in the administration of discipline. The Company will forward a copy of notations to the Union no later those five- ( 5) days from the alleged infraction.

3.05 Nothing in this Agreement shall be deemed to restrict the management in any way in the performance of all functions of management except those specifically abridged or modified by this Agreement.

3.06 The Company agrees that it will not exercise its management rights for the purpose of restricting or limiting the rights of its employees herein granted.

ARTICLE IV UNION SECURITY AND DEDUCTION OF UNION DUES

4.01 An employee who is in the bargaining unit and who is a member of the Union on the effective date of this Agreement shall be required to continue to be a member of the Union as a condition of employment.

4.02 Any employee who is hired subsequent to January 1, 1968 as anew employee and any employee who is hereinafter transferred into the bargaining unit after the effective date of this Agreement shall become and remain a member of the Union on the date of employment or transfer and shall continue to be a member of the Union as a condition of employment.

4.03 An employee in the Union on or after the effective date ofthis Agreement shall continue to be a member of the Union as a condition of employment to the extent of paying membership dues.

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4.04 The Company agrees to deduct from the wages of any employees who are members of the Union and who shall, as a condition of employment, certify in writing on forms supplied by the union that they authorize such deduction; their monthly Union dues in accordance with the International Constitution of the United Steelworkers and remit said deduction to the International Secretary-Treasurer of the Union.

4.05 (a) The Company shall forward the deduction as provided for in this article prior to the fifteen (15th) day of the following month to the International Secretary-Treasurer of the Union as directed by the Union accompanied by the following information:

(1) From whose pay deductions have been made. (2) From whose pay no deductions have been made, and the reason that deductions have not been made. (3) A properly filled out check-off certificate form supplied by the Union.

(b) The Company shall also forward to Local838 ofUSWA a copy of the above information along with a properly filled out Membership Application form supplied by the Union.

4.06 It is the responsibility of the Union to notify the Company from time to time of changes in the amount of Union dues not later than the 25th of the calendar month immediately preceding the month that such changed amount is to become effective.

4.07 The Union shall indemnify and save the Company harmless from any claims, suits, judgements, attachments and from any other form ofliability as a result of the Company making any deductions in accordance with the foregoing authorization and assigmnents and the Union will refund direct to all employees on whom a wrongful deduction was made.

4.08 Both parties agree that there will be no discrimination, coercion, or intimidation of employees in respect to Union membership or authorization of Union deduction.

4.09 The Company agrees to permit the Local President, Vice-President, Unit Chairperson and/or designated person to enter plants after hours for the purpose of transacting business arising out of this Agreement. The Supervisor in the area will be contacted on entry and where applicable will be notified prior to entry as to who the designated person is.

4.10 All notices of meetings and other matters of interest to the employees that the Union desires to be posted shall be submitted to the Company for approval. After approval, the Company will return the notices to the Union for posting.

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ARTICLEV UNION REPRESENTATIONS

5.01 The Company acknowledges the right of the Union to appoint or otherwise select a reasonable number of stewards to assist employees in presenting their grievances to the representatives of the Company.

5.02 There shall be one Unit Grievor for the bargaining unit, and seven (7) stewards' plant wide. All stewards shall have completed their probationary period, and shall be distributed across all shifts as follows:

Day shift 3 Afternoon shift 2 Midnight shift 2

5.03 The Company further acknowledges the right of the Union to appoint or select from the Bargaining Unit a Negotiating Conunittee to consist of the Unit Chairperson and two (2) employees from the Bargaining Unit who have completed their probationary period (exceptions: where the President is from the Bargaining Unit, they will also be included). The Company will negotiate with such committee for renewals or extensions of agreements. A Staff Representative of the U.S.W., will participate in such negotiations if requested to do so by the Union.

5.04 The Company will pay the Negotiating Committee for time lost from their normal hours at every other meeting scheduled for negotiating agreements between the Company and Union, but not including conciliation. Upon prior approval of the Human Resources Department, the Company will pay the Unit Chairperson and/or the Unit Grievor of the Local Union for time spent investigating grievances and/or problems. The rate of pay shall be at the individual's regular hourly rate.

5.05 Union stewards, members of the Negotiating Committee (excepting International U.S.W. representation) as heretofore specified and any other employees requested by the Company to attend a meeting other than specified in Section 5.04 herewith shall be compensated for time so spent at his regular hourly rate.

5.06 The Company shall initially pay for all lost time for Union business. The Company shall accrue such hours and submit an invoice to the Union on a monthly basis for reimbursement for those hours where an employee is absent for work due to union business which is not paid for elsewhere in the Agreement.

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ARTICLE VI GRIEVANCE PROCEDURE

6.01 When an employee has a complaint he shall discuss the same with his immediate Supervisor, either directly or accompanied by his Steward. Every effort will be made by both parties to resolve the complaint as promptly as possible. If the complaint cannot be settled it may be treated as a grievance and processed through the following sequences:

Step 1 -The employee and his Union Steward or member ofthe Negotiating Committee will discuss the complaint with the Supervisor or designated person. The purpose of such meeting( s) will be to reach a settlement as quickly as possible.

Step 2- Failing settlement in Step 1, the grievance shall be reduced in writing, dated and presented to the Manager, within five (5) days of the intended offence or such Grievance will be come null and void. A meeting will then be arranged within five (5) normal working days subsequent to such request. The grievance will be taken up by the Unit Grievor, and/or the Steward, and the Department Manager. The Department Manager will render his/her decision in writing within five (5) normal working days after the conclusion of meeting( s) at this step.

Step 3 -Failing settlement, the grievance may be taken up by the negotiating Committee within ten (1 0) normal working days subsequent to the date ofDepartment Managers written decision, with the Management Committee. The authorized member of the Management Committee will render the decision of such conmuttee in writing within five (5)_normal working days after the conclusion of the meeting( s) on said grievance. A StaffRepresentative may attend at the request of the Union.

Step 4 - Any grievance arising from the interpretation, application, administration, or alleged violation of this agreement, which has not been settled under the Grievance Procedure, including any question as to whether a matter is arbitrable may within but not more than thirty-five (35) calendar days after the completion of Step No.3 be subnlitted to arbitration by either party. When either party to this agreement requests that a grievance be subnlitted to arbitration, they shall make such request in writing and address same to the other party. Such request shall contain, in so far as possible, a complete and accurate statement of the grievance matter to be arbitrated. Within five (5) working days of receipt of this notice, each party shall appoint an arbitrator and notify the other party of its appointee. The two (2) arbitrators so appointed shall attempt to reach a satisfactory solution of the grievance. If they are unable to do so, they shall select a chairman of this arbitration board within five ( 5) working days ofbeing unable to resolve the grievance themselves, but in any event, not more than fifteen (15) working days after the date of the last Arbitrator appointment. In the event of a failure to agree upon a chairman, either or both parties shall make an application to the Minister of Labour for Ontario, asking that he appoint, preferably a member of the judiciary, as a chairman of said board.

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(A) In all cases of arbitration, a single arbitrator will be substituted for a Board of Arbitration provided for in this Article VI unless the Union and the Company mutually agree to proceed by means of a Board of Arbitration.

(B) In all cases of substitution of a single arbitrator for a Board of Arbitration, as outlined in subsection (A) above, all other applicable provisions of Article VI will continue to apply so far as they are relevant.

6.02 Each of the parties shall pay the charges and expenses of its appointee. The charges and expenses of the chairman of the arbitration board shall be borne equally by the Company and the Union.

6.03 A decision by the majority of the arbitration board shall be final and binding upon both parties and the employees.

6.04 The arbitration board shall not be authorized to make any decision inconsistent with the provision of this Agreement nor to alter, modify or amend any part thereof. Unless mutually agreed, no matter may be submitted to arbitration which has not been properly carried through all previous steps of the Grievance Procedure.

6.05 Grievances on hourly rate ceilings in effect on the effective date of this Agreement, including those which are effected by general wage adjustment, are not subject to arbitration.

6.06 During the arbitration procedure, the parties shall, upon request, have the assistance of employee and employees concerned and/or necessary witnesses. The Union will give the Company at least two (2) working days prior notice to the day of requirement of any employee(s) called by them. Also if shorter times are required it will be left open to discussion. All reasonable arrangements will be made to provide access to the plant by the arbitration board, if and when requested, to view disputed operations and confer with necessary witnesses.

6.07 No grievance, after it has been submitted to the Negotiating Committee, shall be settled except through such committee except with the consent and approval of same.

6.08 The Union agrees that the f'mal written answer of the Company to a grievance at any step in Grievance Procedure shall dispose of the grievance unless such is appealed by the Union within ten (ten) working days from the date of the Company's f'mal answer. The only exception shall be that of an appeal to arbitration wherein thirty-five (35) calendar days are allowed. If these thirty-five (35) calendar days fall during July or August, they will be extended to September. Where the Company fails to answer in writing as provided in Step No.2 and/or 3 of Section 6.01, the grievance shall be settled in favour of the Grievor or the Union as the case maybe.

All time limits in Article VI may be extended by mutual agreement in writing, signed by both parties.

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6.09 The decision whether or not to discharge an employee will not be made until at least two (2) full working days have elapsed from the date of infraction, during which time thorough consideration will be given to all the facts and circumstances relevant to the matter. If an employee feels he has been unjustly suspended or discharged or improperly laid off or not recalled in accordance with the Agreement, he shall have the right to appeal herewith. Such appeal must be in writing, addressed to the Company and Union and must be in the Company's hands not later than five ( 5) working days, excluding Saturday, Sunday or holidays after the effective date of such action by the Company. If such appeal is properly made, the matter will be negotiated through the Grievance Procedure commencing with Step # 2 and if it is determined that the employee has been unjustly suspended or discharged he shall be reinstated to his former position without loss of seniority, and shall be compensated at his regular hourly rate for normal hours lost from work because of the suspension or discharge. It is further agreed that the conferring parties, by mutual agreement of the arbitration board, shall have the power to make any other arrangement which in their opinion is just and equitable, in the application of the foregoing penalties.

6.10 The Union agrees there shall be no strike, sit down, slowdown, nor stoppage of work, either partial or complete, during the term of this Agreement. The Company also agrees there shall be no lockout during such term.

ARTICLE VII HOURS OF WORK AND OVERTIME

7.01 The normal work week for employees in the bargaining unit shall be scheduled from 1 I :00 PM Sunday to I I :00 PM Friday and generally on the following normal basis:

Three (3) Shifts: Two (2) Shifts: One (1) Shifts:

11 :00 p.m. Sunday to 11:00 p.m. Friday 7:00 a.m. Monday to 11 :00 p.m. Friday 7:00a.m. Monday to 3:00p.m. Friday

EXCEPTIONS: Machinists, Moldmakers hired prior to June 30, 2005 7:30A.M. Monday to 4:00p.m. Friday

It is understood there may be times and exceptions whereby it may be necessary to schedule shifts at other than on the above basis. Prior to shift changes the Unit Chairperson will be notified of them and their reason.

7.02 Job Classifications may rotate when operating on a two (2) or three (3) shift basis. The Company will discuss and give reasons to the Unit Chairperson and will post the changes in advance. Where the shifts rotate, the rotation sequence will be from the day shift (7:00a.m. to 3:00p.m.) to night shift (11:00 p.m. to 7:00a.m.) to afternoon shift (3:00p.m. to 11:00 p.m.)

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7.03 Hours worked in excess of eight (8) hours in a twenty-four (24) hour period or in excess of a normal week as theretofore expressed, shall be compensated at the rate of time and one halftimes the regular hourly rate. It is understood that in the computation ofhours worked over-time on a weekly basis shall include hours paid for, but not worked.

EXCEPTIONS: a) When the hours of an employee exceed his normal daily hours, because he substituted for

another employee other than at the Company's request, changed his hours at his own request, or made a regular shift change, with the prior approval of his supervisor.

b) Overtime will not be paid twice for the same hours worked or paid for.

7.04 Hours worked from 11:00 p.m. Friday to 11:00 p.m. Saturday, shall be compensated at the rate of time and one half times the regular hourly rate. Hours worked from 11 :00 p.m. Saturday to 11:00 p.m. Sunday shall be compensated at the rate of double times the regular hourly rate.

7.05 Notwithstanding the provisions of Section 7.04 herewith, when it is necessary to schedule a job to more than one (1) shift per day, employees assigned to such job on a shift that commences prior to 11:00 P.M. Sunday and/or commences prior to 11:00 P.M. Friday and/or continues or starts into the hours of a paid holiday, provided such hours do not exceed the normal weekly hours, shall not be compensated at the overtime rate.

7.06 An employee who works overtime shall not be required to take time off during the week to bring his hours down to normal hours per week.

7.07 The Union recognizes that it is the function of the Company to schedule hours of work, and the employee's obligation to work the hours scheduled, provided the hours scheduled do not violate the Employment Standards Act of Ontario and Regulations thereunder.

7.08 The Company will pay employees: a) One (I) ten-minute rest period for an eight (8) hour shift. b) Two (2) ten-minute rest periods for jobs that are scheduled on a tag relief basis (Job Groups HI and C).

c) Notwithstanding the above, the Company will grant, by mutual agreement between the Union and the Company, additional rest periods during excessive heat situations. Temperatures for the Heat Stress Program will be monitored jointly by the supervisor, or his designate, and a member of the bargaining unit.

7.09 The Company will pay employees a twenty (20) minute lunch period based on an eight (8) hour shift.

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7.10 All shifts shall be permitted an allowance of five (5) minutes prior to their normal lunch period and five (5) minutes prior to their normal quitting time for the purpose of "wash-up" "for Job Groups A and Conly".

7.11 An employee required to work overtime of at least two (2) hours or more in excess of his normal shift, shall be paid a ten (1 0) minute rest period for each two (2) such hours scheduled. Such rest periods shall be taken as directed by the Company.

7.12 (1) The Company agrees to keep overtime scheduling to a minimum, but if overtime is necessary it shall be divided as evenly as possible among the employees normally performing the job within the classification. Distribution of overtime will be made starting with the employee with the least amount of overtime as follows:

i) on the required shift within the classification ii) other shifts within the classification iii) those with qualified experience on the required shift iv) those with qualified experience from other shifts

Except in cases of emergency, when weekend work is required, the Company will post such request by two (2) p.m. of the Wednesday immediately preceding such weekend. Overtime availability will be posted and those employees wishing to work must sign up. The final overtime schedule shall be posted no later than Thursday by (2) p.m. and no employee shall be obliged to work any overtime after this day and time.

(2) Records of overtime worked and charged shall be maintained daily and posted weekly on the overtime bulletin board. A copy of the Overtime Records shall be available for review by the Union personnel if so required and issued on a weekly basis to the Plant Chairperson. For recording purposes only, all hours recorded will be equated to regular hours.

Employees shall be charged with overtime refusal if they are entitled to work the available overtime but have declined, or have not signed the posting, fail to work a previously accepted overtime opportunity, or if they are not at work when the overtime is made available. Employees absent for the following reasons shall not be charged, Vacations, five (5) days or more, Bereavement Leave, Casual illness (less than five (5) days). Employees returning to work from the following leaves, will be charged with the average overtime worked during their absence; Weekly Indemnity, WSIB or any other legislated or contractual rights covered under this agreement.

Employees newly transferred into a classification shall be charged with the highest hours in the sharing group.

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It is understood and agreed that any valid claim/s regarding distribution of overtime must be brought to the attention of the Company prior to the conclusion of their shift on Thursday. If such complaint is not rectified, prior to the work being performed, it shall result in payment to the individual/s at the applicable overtime rate and hours. All other discrepancies shall be subject to the grievance and arbitration provisions of this agreement.

Overtime records will be cleared and re-set to zero at the end of each calendar quarter. January 1, April1, July 1, and October 1, of each year.

(3) When overtime is essential and unavoidable and not enough employees among those in the plant who have qualified experience agree to work overtime beyond the normal hours per day or week, then the Company may oblige employees to work. In such case the Company may schedule and will begin with the least senior, those employees with the least amount of overtime, who normally perform the job, to do the work, to a maximum of four (4) hours per day and eight (8) hours per week. Overtime for production employees between 7:00am Saturday and ll:OOpm Sunday during July and August will be scheduled on a voluntary basis.

The Union agrees that employees shall co-operate in performing necessary overtime. The Company agrees to consider an employee's desires and personal commitments, when requesting overtime work. In order to consider the employee's desire, the Company shall allow two (2) qualified employees to split a regular shift of four ( 4) hours each, providing such split does not overlap into the next shift and providing there are enough remaining employees to cover the required overtime.

7.13 All time cards and production records required by the Company are to be completed during worlcing hours.

ARTICLE VIII PAID HOLIDAYS

8.01 An employee who qualifies will be paid for normal daily hours at his regular hourly rate for the following twelve (12) paid holidays: New Year's Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day, Boxing Day, plus three (3) floating holidays in each year of the Collective Labour Agreement. The three (3) floating holidays above will be selected by mutual agreement between the Local Union and the Company.

If an additional statutory holiday is proclaimed, one of the floating holidays will be used for the statutory holiday proclaimed.

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8.02 In order to qualifY for the paid holidays specified in Section 8.01 herewith an employee must meet all of the following rules unless otherwise provided herein:

la) The employee must report for work at the starting time ofhis shift, and be prepared to work the normal scheduled hours of his shift, on both the last scheduled normal work day preceding and the first scheduled normal work day following the paid holiday.

EXCEPTIONS: An employee who is absent on one or both of the qualifYing days, and the reason he was absent was because: (a) He was late in reporting for work due to a reason beyond his control and acceptable to the

Company. (b) He is confined to a hospital or at home due to sickness or injury and such to be verified by

medical evidence if required by the Company. This exception is limited to four ( 4) paid holidays falling within the thirty day period from the date of the first qualifYing day, during same confinement case and provided the employee is not entitled to payment under W.S.I.B. or Weekly Indemnity under the Welfare Benefit Plan for such paid holiday. If an employee is on sick leave and being paid weekly indemnity benefits for the holiday( s) in this subsection, upon return to work such employee will be reimbursed the difference between what the employee was paid as sick benefits and what the employee would be paid for such holiday pay.

(c) He has an approved leave of absence from the Company for any reason which will not be unreasonably withheld.

(d) An employee with seniority and otherwise qualified for paid holidays, who is laid off commencing with December 10 through January 2 inclusive, will be paid for any paid holidays that are observed during this period.

1 b) The employee has completed eighty (80) working days of employment as the day the floater holiday is observed. Floating holidays may be requested by employees throughout the year (from July 1 ''to June 30th). In the event that the plant is in operation between Christmas and New Years, employees who have used their three floating holidays will be expected to work, if work is available. If work is not available, vacation days (to a maximum of three days) from the next year may be pulled forward at the employee's request.

NOTE: Casual Employees, as outlined in Letter of Understanding #4 do not qualifY for Floater Holidays.

8.03 When one of the paid holidays falls during the vacation period of an employee, otherwise eligible for such holiday, he will be paid for such holiday pay. The qualifYing days as provided in Section 8.02 herewith shall be the last scheduled workday preceding and following his vacation leave. The Company may observe such paid holiday either the work day immediately preceding or following the employee's vacation.

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8.04 When the plant suspends operations, the employee who is laid offfor a definite period, not exceeding Twenty-two (22) Normal Working Days, because of such suspension shall upon recall be paid for the paid holiday provided he otherwise qualifies under the terms of Section 8.02.

8.05 When a paid holiday, specified in Section 8.01 herewith, falls on a Sunday, it shall be observed on the Monday immediately following. When a paid holiday falls on a Saturday it shall be observed on the immediately proceeding Friday. This may be changed by mutual agreement.

8.06 Notwithstanding anything to the contrary, employees who have been requested to work on a paid holiday and have accepted such holiday assignment and then fail to report for and perform such work without reasonable cause shall not be paid for such paid holiday.

8.07 An employee who works on a paid holiday shall be compensated at the rate of two times his regular hourly rate for all hours worked in addition to any paid holiday pay he is entitled to under the preceding sections of this Article.

ARTICLE IX WAGE POLICY

9.01 Appendix "A" and "B" herewith attached is part of this Agreement and contains the "Job Classifications" - "Job Descriptions" and their respective hourly rate ceilings and "Cost of Living allowance (C.O.L.A.)". The hourly rate ceilings therein shall remain in effect for the life of this Agreement and are not subject to change except by mutual agreement.

9.02 The term "regular hourly rate" as used in this Agreement shall mean current hourly rate of the employee excluding any shift premium and/or any other premiums paid for work.

9.03 The starting rate for all job classifications shall be three (3) dollar per hour below the ceiling rate. There shall be an automatic progression of seventy-five (.75) cents per hour effective the first Monday following six (6) months of employment, an additional seventy-five (.75) cents per hour increase effective the first Monday following the completion of each six (6) months until such time top rate is achieved.

9.04 The increases specified in Sections 9.03, 9.11 and 9.12 are expressed as minimums and an employee may be increased up to the ceiling rate prior to the completion of one (1) year.

REPORTING FOR WORK:

9.05 When an employee reports for work at his scheduled shift time, without being notified to the contrary, or reports for work at a time requested by his supervisor, and is assigned no work, or works for a lesser period than four ( 4) hours, because of some reason within the Company's control, payment will be made for a minimum of four (4) hours at the employee's regular hourly rate. It is

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understood that reporting for work means the employee has punched in, and is at his work station ready for work at his scheduled starting time (exception: an employee notified by the Company within two (2) hours of his starting time shall not be required to punch in).

An employee shall be considered to have been properly notified if such notification is made by the Company no later than two (2) hours before his scheduled starting time. Reporting for work will not be paid:

(a) When the opportunity to work on other jobs is refused without good reason. (b) When an employee has been absent from work for personal reasons and not covered by a

leave of absence prior to reporting for work. (c) When an employee fails to record with the Company a current telephone number and

therefore the Company is unable to notify him not to report to work. (d) In cases of stoppages of work caused by labour disturbances. (e) In cases caused by mechanical or electrical breakdowns, catastrophe, fire, or any other cause

beyond the Company's control.

FUNERAL PAY 9.06 An employee who has completed Twenty-two (22) working days and who is excused from

work by the Company to make arrangements and/or attend the funeral of their spouse, common-law spouse, same sex partner, child, grandchild, parent/guardian, brother, sister, grandparents, and great grandparents, parent of their current spouse, son-in-law, daughter-in­law, brother-in-law, sister-in-law, grandparents and great grandparents of their current spouse shall be compensated at his regular hourly rate for time so lost by him during his normal hours, for three (3) days, including but not beyond the day after the day of the funeral.

EXCEPTION: If the employee is eligible for any other form of remuneration to which the Company contributes, payment shall not be made under this Section for such day( s ).

JURY DUTY: 9.07 A seniority employee who is summoned by applicable law and reports for jury duty or as a subpoenaed crown witness shall be paid by the Company an amount equal to the difference between the daily jury duty fee paid by the court (not including travel allowances or reimbursement of expenses) and the wages earned by the employee from the Company by working normal hours on that date. The employee will be paid for each day on which he reports for or performs jury duty and on which he otherwise has been scheduled to work for the Company during the normal workweek. Payment for such service shall be made at the employee's regular hourly rate provided: (a) The employee notifies the Company within twenty-four (24) hours after receipt of notice of

selection. (b) The employee furnishes the Company with a written statement, signed by the appropriate

public official, which shall contain the date, time served and amount paid. (c) The employee reports for work if a reasonable amount of time can be worked either before or

after such service.

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9.08 An employee called back to work in an emergency at anytime prior to one (1) hour before his normal starting time, will be paid as follows:

(a) If he is not required to remain in the plant one half hour before and beyond his normal starting time, he will be provided with a minimum of four ( 4) hours at his regular hourly rate, and at time and one halffor such hours worked.

(b) If he is scheduled to remain in the plant beyond his normal starting time, he will be paid at time and one half for hours worked prior to his normal starting time.

It is understood that Section 7.03 (b) is also applicable. Exception: Minimum call-in pay for boiler service and water treatment is two (2) hours.

FACTORY INJURY PAY: 9.09 An employee who is injured at work and who is required to obtain treatment at the factory

location and/or who is required to obtain treatment at another medical location shall be paid his regular hourly rate for such time lost from the shift during which the accident occurred.

EXPERIMENTAL AND INVENTORY PAY: 9.10 An employee shall be paid his regular hourly rate for experimental and inventory work. Inventory work performed on overtime will be posted as required.

TRANSFER PAY: 9.11 An employee transferred to another job because of such reasons as: application for transfer, seniority displacement, or no work available on his job, shall be paid at the rate of fifty (50) cents per hour less than the ceiling rate of the job to which he is transferred (but not less than the employee's regular rate). Exception: If such employee is transferred to a job of a lower ceiling rate and he has "qualified experience" on such job, he will be paid the ceiling rate. After twenty (20) days working on a job other than the "exception" he shall be paid the ceiling rate.

9.12 An employee who is temporarily transferred from his regular job to another, and there is work available on his job shall be paid his regular hourly rate, or the rate in accordance with Section 9.11, whichever is the higher.

SHIFT PREMIUM: 9.13 The Company will pay a shift premium per hour for hours worked on the shifts that are normally scheduled from 3:00p.m. to 11:00 p.m. and 11:00 p.m. to 7:00 a.m. as follows:

Effective: July 1, 2005 July 1, 2006 July 1, 2007

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3:00pm to ll:OOpm ll:OOpm to 7:00am

$ .45 $ .45

$.50 $.50

$.55 $.55

9.14 An employee who is scheduled to work overtime for at least four (4) hours following his normal shift and who had not been given two hours notice prior to the beginning of the shift, shall be paid a meal allowance of Five Dollars ($5.00).

SHORT WORK ASSISTANCE PAYMENT 9.15 An employee with one year or more seniority shall be eligible for Short Work Assistance Payment (S.W.A.P.) provided:

(a) An employee was laid off for a minimum of four ( 4) hours to a maximum of sixteen (16) working hours per normal work week.

(b) The employee was not eligible for Employment Insurance Benefits during that week.

Short Work Assistance Payment is applicable for work shortage resulting from customer scheduling, shortage of materials, and equipment breakdown.

Short Work Assistance Payment is not applicable for Semi-Annual and Annual Inventory, scheduled downtime unrelated to above items, acts of God such as flood, tornado, lightning etc., days falling in a series of Statutory Holidays and/or floaters, and any situation which violates plant Health and Safety rules.

When the plant works less than a forty (40) hour week on a scheduled basis due to work shortage, SWAP will be paid as follows:

Application shall be made by employees on forms available from the plant office. A Copy of the application will be provided to the Union. Payments will be made on approval of the Human Resources Manager and in accordance with this Section.

S.W.A.P. Payment will be 60% of the employee's regular hourly rate for all such hours lost through lay-off to a maximum of six dollars ($6.00) per hour.

The Company shall establish and maintain a fund by contributing five cents ($0.05) per hour for every employee with one or more years of seniority - to a maximum of Two Hundred and Fifty Dollars ($250.00) per employee. The maximum trust fund position shall be Two Hundred and Fifty Dollars ($250.00) times the number of employees who have one or more years of seniority.

The monies collected in the fund may be invested in general obligations ofthe Dominion of Canada, the Government of a Canadian Province and/or in guaranteed Trust Company Debentures.

Nothing will prevent the Company from using the money intemallyprovided they pay interest on the minimum monthly balance on the basis of the ninety (90) day bank rate.

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The Union will be provided with at least quarterly statements of Trust Fund Activities.

When the maximum has been reached in the Fund, no more contributions will be made until the fund is below ninety percent (90%) of maximum funding. Payment to employees will cease when the Fund is below four percent (4%) of maximum funding for that week and will re-commence the week the Fund is four percent (4%) or higher.

NO VESTED INTEREST: No employee shall have any right, title, or interest in or to any of the assets of the Fund, or in or to any Company contribution thereto. If the Company were to completely and permanently close its operations this fund will be distributed as evenly as possible among its employees at the time of the announcement. The Company will administer this fund in accordance with this Section.

DISPUTED CLAIM: If a dispute arises due to any claim by an employee, it shall be dealt with starting at Step 2 of the Grievance Procedure.

PAYMENT OR DENIAL OF PAYMENT: Payment to an employee will be made in the pay period following the pay period during which the application was made. Applications must be in the hands of the Human Resources Manager no later than one normal work week following the Short WorkWeek applied for.

Denial of payment will be provided in writing to the employee within one normal workweek of the application. A copy of the denial will be forwarded to the Union.

ARTICLE X SENIORITY

10.01 An employee shall be regarded as a "probationary employee" until he shall have completed eighty (80) working days and during such period shall have no seniority rights. Upon completion of such period from initial employment, he shall be classed as a "Seniority Employee", and his seniority shall be from the first day of initial employment. All time worked plus approved leave of absence, or lay-off shall be cumulative over a twelve (12) month period. The treatment of"Casual Employees" for seniority purposes are handled under Letter of Understanding #4.

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The employee's performance will be reviewed at their twentieth (201h), fortieth (40th), sixtieth (60th) and seventy-fifth (75th) working day and made available to the Unit Chairperson of the Union.

I 0.02 Each employee in order to benefit by the seniority provision of this Agreement must keep the Company informed ofhis current address and the telephone number where he can be contacted as follows: (a) An employee on the active payroll will notify the Human Resources Office within seven (7)

normal working days by signing the form available. Such forms will be made in triplicate. One (I) copy will be retained by the employee. Failure to notify the Human Resources Office without good reason for such failure may result in the employee forfeiting his seniority rights.

(b) An employee on lay off, and subject to recall, will notify the Company by mail.

I 0.03 An employee shall have job seniority when he completes forty ( 40) working days on the job on which he was hired, or to which he was transferred at which time his Company seniority shall be deemed to be his job seniority.

10.04 When an employee has job seniority and is transferred he shall continue to accumulate job seniority on such job until he acquires job seniority on a job to which he was transferred.

10.05 (a) Employees shall be deemed as "Qualified Experience" if he can perform the job of an experienced employee in the said classification, or upon successful completion of a reasonable training period for such classification. b) "Capable" shall mean the employee is mentally and physically qualified to perform the job.

I 0.06 For the purposes of Seniority jobs have been grouped into the following: A, C, D, G, H, and S and are listed and attached as appendix "A". Definitions of departments are also outlined in Appendix "A". Seniority shall be recognized when laying off employees. Seniority will be exercised first within the department concerned with the lay-off, then within the plant. This bumping will be subject to the definitions and restrictions providing in 10.05 a) and b).

1) a) When is becomes necessary within a classification, probationary employees will be

laid off frrst, and employees on loan will be returned to their home classification.

b) If further lay-offs are necessary, employees will be laid off first, by the least seniority employee within their classification.

c) Laid off employees may then exercise their seniority by displacing a junior employee within their Job Group provided they have "qualified experience" o_r where it is reasonable to believe that an employee can perform and demonstrate the ability to perform all the necessary requirements of the position within a 2 week training period.

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d) When a), b) and c), have been completed, employees who remain surplus shall displace a junior employees within any of the remaining job groups, provided they have recognized "qualified experience" or where it is reasonable to believe that an employee can perform and demonstrate the ability to perform all the necessary requirements of the position within a 2 week training period.

Management shall have the right to pass over an employee's claim if it is established that the employee does not have the ability to perform all the necessary requirements of the position within a 2-week training period.

2) Employees who have been displaced through the bumping procedure from a position to which they have recognized "qualified experience" shall retain recall rights to such classification for twelve (12) months from the date of the layoff. Employees recalled to classification after six (6) months but less than twelve (12) from date of the layoff, shall have the option of returning to the previous classification.

3) An employee on lay-off, and who has recall rights shall be recalled to vacancies by the application of the reverse procedure as set forth herewith in Section 10.06. Wherever possible shift preference will be given according to seniority.

10.07 A seniority employee at date of lay-off will have the seniority he had at time of lay-off provided he is recalled within his period of recall rights and in addition shall be credited with time on lay-off up to six (6) months.

1 0.08A seniority employee who has:

(a) Less than three (3 years, at date of lay-off shall have recall rights for twelve (12) months from date oflay-off.

(b) Three (3) or more, but less than five (5) years of seniority at date of lay-off shall have recall rights for twenty-four (24) months from date oflay-off.

(c) Five (5) or more years of seniority at date oflay-offshall have recall rights for five (5) years from date oflay-off.

10.09 An employee recalled shall present himselffor work within five (5) working days from the date of recall. However, if such employee is employed at time of recall such five (5) working days shall be extended to seven (7) calendar days. Failing to so report shall cancel all seniority. However, should he report within thirty (30) days of date of recall with a reasonable reason, acceptable to the Company, for not reporting, his seniority shall be retained and he will be notified of the next vacancy under the terms of this Article.

Where the employee cannot be reached by telephone for recall, a registered letter will be sent to the employee's current address on file. The employee must contact the Company within five (5) working days of the date of receipt and return to work within three (3) working days of

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notifying the Company in order to retain seniority. In the event of a postal interruption, such letter will be sent via courier to the employee's current address on file.

10.10 Notwithstanding the provision of this ARTICLE, the Company may place employees under the following conditions: (a) Where two (2) or more employees have identical seniority and are entitled to the same job,

the person with the birth date earliest in the year will be deemed to have preference. (b) Where au employee is fully qualified to perform an operation for which no other employee

can qualify. (c) Where for the purpose of rehabilitation, a Company compensable injured employee, as a

result of such injury requires that he be kept at work or he has a permanent partial disability, but performs the work to which he has been assigned in a marmer satisfactory to the Company. In either case, the injured employee shall not displace au employee with more seniority.

(d) Where an employee cannot perform satisfactory work due to age, health, or other physical or mental conditions such employee shall be accommodated in accordance with the provisions of the Human Rights Code.

The Company agrees to consider a complaint from the Union pertaining to the application of this Section. This consideration shall be limited to a meeting with the Negotiating Committee if and when requested.

10.11 a) For the handling of an employee presently in, or who has been in, what is now the bargaining unit, who transfers to a supervisory position or any salary position outside the bargaining unit directly connected with the operation of the plant:

If he returns to the bargaining unit, he shall return to the position he had prior to transfer provided he has not been on the salary payroll longer than nine (9) months, that he not displace au employee with more seniority, and that the employee only return to the bargaining unit on one (1) occasion. Failing placement, he may be placed in another job providing he is capable and has more seniority than the employee he may displace. Time spent on supervisory or other position, up to nine (9) months, shall be credited to the job he held prior to promotion or transfer. Following nine (9) months on the salary payroll, the employee will be deemed to have no seniority within the bargaining unit.

b) For the handling of employees who are members of the bargaining unit and who accept temporary assignment to supervisory duties:

Employees who are temporarily loaned to supervisory duties not to exceed six (6) weeks: These employees will be paid per the terms and conditions of this Collective Labour Agreement.

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Upon completion of the assignment, the employee will be returned to the job he held prior to the assignment.

Employees who accept an assignment of supervisor for a period of up to twelve (12) consecutive months:

These employees will be paid rates and work scheduled hours as determined by the Company. Upon completion of the assignment, the employee will be returned to the job which he held prior to the assignment. It is agreed that any employee who changes jobs as a result of the assignment will be informed that such change is on a loan basis and that at the end of the assignment he will return to the job he held prior to the assignment. During these loan periods, the employee will continue to accrue seniority under this Labour Agreement.

It is understood that the lengths of assignments specified above may be extended by mutual agreement between Company and Union.

10.12 When a temporary condition arises requiring the temporary lay-off of an employee for a period not to exceed five ( 5) working days the seniority provision of this Agreement may not apply. Such temporary lay-offs may take place only when a specific job or group is affected temporarily due to machinery breakdown, customer scheduling, or any other causes beyond the control of the Company. When a temporary condition affects part of a job classification, probationary employees in such classification will be laid offbefore seniority employees are affected. The lay-off will be by seniority within the plant, group and shift where the temporary condition exists, providing the employees remaining can satisfactorily perform all the functions necessary to operate the plant. The foregoing "five ( 5) working days" may be extended by mutual agreement.

10.13 In the interest of the Company, employees may be loaned from one job to another for a period not to exceed four ( 4) consecutive weeks. Such time may be extended by mutual agreement. If an employee is transferred to such job while on loan, his transfer date shall be that of the first day of loan. Employees who are placed temporarily on jobs for rehabilitation purposes shall be classified as "loaned employees". The Union will be notified of such loan and the purpose of it.

I 0.14 The Company will review the list oflay-off of seniority employees with the Union in order to avoid any error.

I 0.15 When it becomes necessary to lay-off an employee he will be given seven (7) calendar days prior notice of the date of his lay-off whenever possible. An employee desiring to leave shall likewise give notice whenever possible.

10.16 1) When a seniority employee wishes to transfer from his job to another job in the bargaining unit, or wishes to transfer between shifts within his own classification, he shall make written application to the Company which will remain on tile for six (6) months. If

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the transfer is for a job outside his department the employee must specify the department to which he wishes to transfer. If the transfer is for a job within the department the employee must specify a particular job. An employee shall have no more than three (3) applications pending. In the event a job vacancy exists, to which no employee has recall rights, such vacancy will be posted for a twenty-four (24) hour period. Such posting will include the job title, job group and initial shift vacancy. Employees wishing to apply must make written application to do so, by signing the job posting.

a) In cases of filling all vacancies, shift transfer request within the classification will be completed and the resulting vacancy will be posted. The most senior qualified experienced applicant/ transfer Gob transfer on file) shall be awarded the job.

b) In the event a new job is established or there is no successful applicant with the qualified experience required, the most senior applicant shall be afforded the opportunity for such position in accordance with the following, in order to assess their suitability

Job Group C 30 working days

Job Group D 15 working days

Job Group G 15 working days

Job Group H 10 working days

c) After acceptance and working on such job, should the employee desire to return to their previous position, he/she must advise the company in writing of their intent within the initial training period.

d) The company shall have the right to return an employee to their previous position if it is determined they are not able to meet the requirements of the position within the initial training period.

e) An employee transferred under this Section, who successfully completes the initial training period, shall have no further rights under this section for one year from the date oftransfer.

EXCEPTION: An employee who cannot remain on the job to which he was transferred because he is displaced by an employee, or who is returned by the Company, or by his own accord and transferred back within the foregoing training period.

2) The company is committed to providing opportunities of advancement within the bargaining unit and will endeavor to do so by posting such opportunities to gain

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experience through cross training. It is the intent to ensure that adequate knowledge, skills, and the abilities to perform all the necessary functions exist and are distributed throughout the classifications and shifts.

In the event an opportunity arises for "cross-training" in an existing position, such opportunity will be posted for a twenty-four (24) hour period excluding Saturday, Sunday, and holidays. Such posting will include the job title, job group, and initial shift vacancy. Employees wishing to apply must make written application to do so, by signing the job posting.

Selection will be filled in accordance with seniority, the requirements of the position, and the applicant's capabilities. Applicants may be required to pass a company written and or practical skill test to qualify for the opportunity of "cross-training".

Grandfathering. Employees who have been previously awarded "back-up" positions will be deemed as "cross-trained".

For temporary vacancies of three (3) months duration or longer, transfer requests on file will be considered

10.17 Any of the provisions of lay-off, recall and/or vacancy procedures may be superseded by mutual agreement between the Company and the Negotiating Committee of the Union.

10.18 The Company may grant a leave of absence to employees, except for illness or injury of the employee. Such leave must be in writing, and the employee must have written approval before taking such. The duration of the leave will be based on the following:

SENIORITY (a) Less than two (2) years seniority (b) Two (2) years less than five (5) years (c) Five (5) years and over

DURATION OF LEAVE 15 Calendar Days

4 Weeks 3 Months

10.19 Leaves of absences shall be granted for illness or injury of an employee provided he makes application to the Company for same. The duration of the above leave shall be dependent on the nature of the illness or injury, the medical aspects of the case and the effort the employee is making to restore himself to normal health.

10.20 A pregnancy leave of absence will be granted to any female employee who has been employed by the Company for at least thirteen (13) weeks preceding the estimated date of delivery. The employee must notifY the Company of the fact within four (4) months after inception of pregnancy. She shall not work later than such time as the duties ofher job cannot be performed by a pregnant woman, or the performance of her work is materially affected by the pregnancy.

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An employee who is entitled to the leave is required to give her employer two (2) weeks' notice in writing of the date the leave is to begin, together with a medical certificate estimating the date of delivery. If the employee does not specifY the date of the end of the pregnancy leave, it will be assumed that she wishes to take the maximum leave.

An employee who has given notice to begin a pregnancy leave may change the notice to an earlier date by giving at least two (2) weeks' written notice before the earlier date. She may change to a later date by giving two (2) weeks' notice before the leave was to begin.

- Pregnancy leave of a maximum of seventeen (17) weeks is available to the natural mother of the child.

- Parental leave of a maximum of thirty-five (35) weeks after taking a pregnancy leave or a maximum of thirty-seven (3 7) weeks (if no pregnancy leave was taken) is available to each parent of either a natural or an adopted child. The parental leave of a natural mother must begin immediately following the expiration of the Pregnancy Leave. If you are a father or adopting parent, parental leave must commence within fifty-two (52) weeks of the date of the child's birth or coming into custody, care, and control of the parent. Parental leave ends either thirty-seven (37) weeks after commencement or thirty-five (35) weeks after commencement (if following a pregnancy leave.)

- Sickness (available for up to seventeen (17) weeks) - fifteen (15) weeks payable by EI - Medical certification is required.

The employee who intends to resume her employment after her leave of absence must so notifY the Company of the fact two (2) weeks prior to return in writing together with a medical certificate. The Company must be given two (2) weeks notice of the intent to take parental leave following the pregnancy leave

Seniority shall accumulate during such leaves, provided it does not exceed twelve months. She shall notifY the Company of her intention regarding her return to work during such leave by giving the Company two (2) weeks prior notice before the date of expected return.

The employee continues to participate in each type ofbenefit plan provided by the Company, and all required contributions will continue to be made. Upon return from Pregnancy or Parental leave, the employee will be reinstated to a position of the same status and pay as the position held at the commencement of the leave.

If an employee on pregnancy or parental leave wishes to change the date of her return to work to an earlier date, she must give the employer four weeks ( 4) written notice before the date she intends to return. If the employee wishes to change the date of return to a later date (keeping in mind the maximum length ofleave), she must give the employer four (4) weeks' notice before the date the leave was to end.

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10.21 A seniority employee who is elected or appointed to serve as a representative of his local union, and/or the International Union, C.L.C. or Ontario Federation of Labour, shall upon written request be granted a leave of absence without pay, up to a period of one (1) year. An extension of such leave may be granted on a yearly basis. The Company shall retain the right to refuse such leaves, if more than two (2) employees are appointed or elected to serve as representatives.

A seniority employee who is elected or appointed to a municipal office or committee in the Cities of Kitchener or Waterloo or Regional Municipality of Waterloo, shall be permitted time off, without pay, to attend meetings or conventions pertaining to such office. The Company shall reserve the right to refuse such leave if more than two (2) employees require a leave at the same time.

10.22 A seniority employee who is a properly designated representative of the Local Union shall upon request to the Company be permitted time off without pay for the investigating or handling of grievances, attending to local Union business or attending a convention.

10.23 An employee who has been off on a leave of absence in excess of fifteen (15) days, shall if requested by the Company, present a certificate from his doctor, stating his fitness to return to work.

10.24 Seniority shall accumulate during a period of an approved leave of absence provided such accumulation does not exceed six ( 6) months during any one period of! eave of absence, including extension.

EXCEPTION: An employee granted leave of absence to serve as a representative of his local union, and/or the International Union, C.L.C. or Ontario Federation of Labour, shall be permitted thirty-six (36) months in place of the foregoing six (6) months.

10.25 A person shall lose all seniority and shall be deemed to have terminated employment with the Company if he: (a) Voluntarily quits the employ of the Company. (b) Is discharged for just cause and is not reinstated. (c) Is absent due to lay-off beyond the period of his recall rights. (c) Fails to report for work in accordance with Section 10.09 herewith

10.26 An employee who returns from a leave of absence shall be reinstated in his former position or a position in accordance with his seniority provided he is medically fit to do the work.

10.27 All applications for leave of absence for a longer period than fifteen (15) days must be in writing and the reply by the Company must be in writing, except that if the employee is unable to make written application and has a valid reason for not making such, in which case the Company will grant such leave.

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10.28 The Unit Chairperson of Local #838 will be assigned to the normal day shift operation, so long as the employee retains such office.

10.29 The Company agrees to furnish the Unit Chairperson of Local #838 with seniority lists based on the employee's records, which shall contain the then current seniority date of each seniority employee in the bargaining unit. This list shall be supplied and posted every six ( 6) months of a contract year.

ARTICLE XI VACATION

11.01 An employee who has one or more years of seniority as of June 30th of the current calendar year shall be granted a vacation the duration of which shall be based upon his seniority and a percentage of the employee's wages received by him from the Company from July 1st of the preceding year to June 30th of the current calendar year. The time and payment shall be based on the following: "Wages Received" includes such items as Vacation Pay, Paid Holiday Pay, Overtime, Shift Premium, etc.

SENIORITY as of July of the Current Year Vacation Payment

Group "A" Less than 1 year 4%

Group "B" 1 year, but less than 5 years 2 Calendar Weeks 4%

Group "C" 5 years, but less than 10 years 3 Calendar Weeks 6%

Group "D" 10 years, but less than 20 years 4 Calendar Weeks 8%

Group "E" 20 years or more 5 Calendar Weeks 10%

An employee who reaches his 5th, 1Oth, or 20th, anniversary date after June 30th, but prior to December 24th of the current year will be granted his 3rd, 4th, or 5th week of vacation between his anniversary date and January 31st of the year following.

11.02 When the company follows its policy of closiog down for vacation, and provided the employee is not scheduled to work duriog the shutdown, the employee will take his vacation at this time, and he shall be paid his vacation payment on the regularly scheduled pay day.

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11.03 A defmite period of vacation must be scheduled by the Company giving due consideration to production requirements, seniority, and related situations. Vacation requests for the current year that are handed into the Plant Office prior to March 31st will be scheduled on the basis of seniority. Answers to vacation requests will be made within two (2) weeks after March 31st whenever possible. Vacation requests handed in after March 31st will be scheduled on a "first come first serve" basis. No vacation time or payment will be authorized except as defined in this ARTICLE.

11.04 Vacation pay may not be made to an employee who is absent from work by reason of sickness, injury or leave of absence. If vacation payment is not made and if upon the employee's return to work: (a) The Company is unable to schedule his vacation prior to December 1st of the current calendar year or (b) The employee is unable to return to work prior to December 1st of the current calendar year the Company will pay him the vacation payment he is entitled to herewith.

11.05 An employee whose employment is terminated for any reason, including being laid off with recall rights, shall be paid a vacation on the following basis: (a) Where termination occurs prior to July 1st, but subsequent to January 1st of the current calendar year, and the employee has not had his vacation payment for such vacation year he shall be paid a percentage of his wages as specified in Section 11.01 herewith from July 1st to the previous calendar year to his termination date as follows:

Group "A" 4% Group "B" 4% Group "C" 6% Group "D" 8% Group "E" 10%

(b) When termination occurs subsequent to June 30th of the current calendar year, but prior to January 1st of the next following calendar year, and the employee has not had his vacation payment entitlement for the current vacation year he shall be paid any unpaid vacation due him, and in addition he shall be paid a percentage ofhis wages as specified in Section 11.01 herewith from July 1st of the present calendar year to his termination date as follow:

Group "A" 4% Group "B" 4% Group "C" 6% Group "D" 8% Group "E" 10%

(c) When termination occurs subsequent to June 30th ofthe current year, but prior to January 1st of the next following calendar year, and the employee has had his vacation payment entitlement for the

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current calendar year, he shall be paid in addition a percentage of his wages as specified in Section 11.01 herewith from July 1st of the present calendar year to his termination date as follows:

Group "A" 4% Group "B" 4% Group "C" 6% Group "D" 8% Group "E" 10%

11.06 An employee who is laid off prior to July 1st of the current calendar year, but subsequent to January 1st of such year, and who is rehired or recalled prior to July 1st of the current calendar year shall be paid his vacation pay entitlement in accordance with Section 11.01 less any vacation pay received in accordance with Section 11.05 subsection (a) herewith.

11.07 An employee who is laid off subsequent to July 1st of the current calendar year and who is rehired or recalled prior to June 30th of the next following year, shall have the amount of vacation payment received by him in accordance with Section 11.05 subsection (b) or (c) herewith from July 1st to his termination date subtracted from vacation payment receivable in the next following calendar year.

11.08 Where an employee has been unable to work during the preceding calendar year, or any part thereof due to sickness, injury, maternity or pregnancy leave, and for this reason only, the vacation pay is less than the following minimum, the vacation pay shall be increased to a minimum ofF our Hundred dollars ($400.00) per week, provided the employee must have resumed his normal duties not less than three (3) months before vacation is granted.

11.09 An employee who has been on sick leave during the current year and who returns to work during such year may by mutual agreement be paid the vacation due him in lieu of time off.

11.10 In no instance will vacation be paid twice for the same period of time.

11.11 Employees can request up to one week of unused vacation paid out at year-end as long as they are eligible for a minimum of 3 weeks vacation. Vacations are to be taken from January 1 '' to December 31''. Any vacation not scheduled by an employee by September 1'' will be scheduled by the Company and written notice will be sent to the employee.

ARTICLE XII GENERAL

12.01 The Company will continue to supply the safety and wearing apparel for positions as listed below and under similar conditions. Also, 100% of the cost of safety boots or shoes will be

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reimbursed to the maximums as shown below. New employees will receive reimbursement at the successful end of their probation period. Unused portion of their allowance can be rolled forward for one year.

Effective: Eligible on a contract Year basis (July to June)

July 1, 2005 $100.00

July 1, 2006 $110.00

Suitable wearing apparel will be supplied to the following Job Groups:

GroupA2 GroupA3 Groupe GroupD1 GroupG

- Machinists - Maintenance - Set-up Operators - Shipper/Receivers - Prefoamers

July 1, 2007 $120.00

12.02 The Company shall pay employees their wages bi-weekly, every second Thursday, by direct deposit only, for wages owing them for work performed in the inunediate past two (2) calendar weeks. Payroll corrections less than $60.00 net pay will be corrected on the following pay.

12.03 It is understood that the following are part of this agreement: (1) Welfare Benefit Plan (2) Pension Benefit Plan (3) Letter of Understanding #1 -Apprentices ( 4) Letter of Understanding #2 -New concept on hours of work (5) Letter ofUnderstanding #3 - SWAP (6) Letter ofUnderstanding #4- Casual Employees (7) Letter ofUnderstanding #5 - Shift Meetings

12.04 An employee appointed lead hand shall have the authority to instruct and/or train employees, assign employees their work and report facts. Such employee shall not have the authority to discipline or recommend discipline.

12.05 The Company and the Union shall appoint a joint Labour Management Safety Committee. The certified worker representative will be certified through the Workers Health and Safety Centre. The Conunittee shall be composed of an equal number of representatives of Management and Union Employees, but not more than a total of eight (8) members.

The Company shall upon request of a member of the Labour Management Safety Committee provide the Committee, whenever possible, with a Material Safety Data Sheet of any materials used in the manufacture of its products.

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The purpose of the Labour-Management Safety Committee is to provide effective methods for the elimination of conditions hazardous to the health and safety of the employees.

The Company agrees that the standards of the Occupational Health and Safety Act 1979 shall constitute minimum acceptable practices.

The Committee shall: (a) Meet once per month on a definite established schedule (b) Make periodic inspection of the plants, but not less frequently than once every two (2)

months.

12.06 Employees excluded from the bargaining unit shall not normally perform work that would deprive employees in the bargaining unit of work. Exceptions are when training employees, performing work of an experimental nature, taking of inventory, running in new machinery or performing work of an emergency nature.

12.07 It is not the intent of the company to contract out maintenance work unless it is for cases of emergency and non-routine maintenance work (e.g. Capital projects, process projects). On-going contract work will be reviewed with the Union prior to any work being done (except in the case of an emergency, when it will be discussed as soon as reasonably possible).

It is the intent of the Company, provided we have the necessary facilities and equipment, and can perform the work required within our own workforce, within projected time limit, without affecting quality, to keep such work within the Skilled Trades (maintenance) department. A yearly training analysis will be conducted for all Skilled Trades personnel in conjunction with the Skilled Trades Representative for the purpose of developing a training plan to reduce the costs associated with contract work within the Skilled Trades Department. The Union agrees that employees shall cooperate in participating in the required training as determined by the Training Analysis. The results will be reviewed on an as needed basis throughout the year.

No Skilled Trades employees shall be laid off or continue on layoff or be deprived of overtime opportunities, if such work is available.

12.08 The Company will provide a tool allowance of Two hundred twenty five dollars ($225.00) per calendar year, which can be carried over from year to year, to employees in Job Groups A and C to cover all new tool purchases required for these positions.

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ARTICLE XIII DURATION OF AGREEMENT

13.01 Amendments to this agreement may be made in writing by mutual consent of both parties.

13.02 This Agreement shall become effective on the 1st day of July 2005, and shall remain in full force and effect until June 30, 2008, and shall continue in effect thereafter from year to year for further periods of one year each, unless either party shall have given written notice of termination or proposals for amendments to the other party not more than ninety (90) days prior to the expiration date or any yearly period thereafter. In the event of written notice of termination or proposals for amendments having been given by either party, as herein provided, negotiations shall be carried on during the notice period with a view to completing a new Agreement.

Should such negotiations extend beyond the expiration date, this Agreement shall remain in full force and effect as provided in the Ontario Labour Relations Act.

IN WITNESS WHEREOF the parties have executed this Agreement.

FOR THE COMPANY FOR THE UNION

Joanne Martin NickLizun Unit Chairperson

Michael Quelch Kelly Nodwell

Mark MacKay Pam Beamsley

Jim Harvey USW Staff Representative

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APPENDIX "A"

RATE RATE RATE JOB TITLE: GROUP "A" 0.0% 3.0% 3.0%

Eff. 7/1/05 Eff. 7/1/06 Eff. 7/1/07 2. Machinist, Moldmaker, Patternmaker, Sample

Maker GroupAA 24.33 25.06 25.81 Group A 23.60 24.30 25.03 GroupB 22.88 23.56 24.27

3. Maintenance Mechanic- Grade AA 24.33 25.06 25.81 Maintenance Mechanic- Grade A 22.94 23.63 24.33 Maintenance Mechanic - Grade B 22.30 22.96 23.66

JOB TITLE: GROUP "C" 1. Set-up Operator 1 21.55 22.20 22.87

Set-up Operator 2 20.53 21.14 21.77 Set-up Operator 3 19.44 20.02 20.62 Set-up Operator 4 (former AA) 18.35 18.90 19.46 Set-up Operator 5 (former A) 17.27 17.78 18.31 Set-up Operator 6 (former B) 16.53 17.02 17.53

JOB TITLE: GROUP "D" 1. Shipper-Receiver 16.07 16.55 17.04 2. Material Handler 15.78 16.25 16.74 3. Bead Handler 15.78 16.25 16.73

JOB TITLE: GROUP "G" 1. Prefoamer 16.53 17.03 17.53

JOB TITLE: GROUP "H" 1. Press Operator 14.93 15.38 15.83 2. Secondary Operator 14.93 15.38 15.83

JOB TITLE: GROUP "S" 1. Student and Non-Production Work Rate 12.20 12.56 12.93

Skilled Trades Ineqnity $ .50 over base rate commencing July 1, 2006.

One time Signing Bonus of$ 1,000.00 (gross) payable within thirty (30) days of ratification.

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LEAD HAND RATE: Lead Hands will be paid thirty (30) cents per hour higher than the rate of the job on which they are employed, except Group "A", which will receive fifty (50) cents per hour.

DEPARTMENTS

Departments will be broken down as follows:

DIVISION: Morval- Shirley Avenue Plant DEPARTMENT: A- consists ofHl, H2, G1 DEPARTMENT: B- consists ofDl, D2, D3 DEPARTMENT: C- consists ofCl DEPARTMENT: D- consists ofA3 DEPARTMENT: E - consists of A2

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APPENDIX "B" THE COST OF LIVING ALLOWANCE (C.O.L.A)

1. Cost of Living Allowance will be frozen for the term of this agreement. The following is the previous method of calculation.

2. The amount of interim increase shall be calculated below on the basis of the Consumer Price fudex published by Statistics Canada 1971 = 100 hereafter referred to as C.P.I.

3. Base for calculation shall be June 1989 C.P.I. plus 5.0 points.

4. (a) The first payment shall be calculated and paid the first pay period following September 30, 1989. It will reflect one (1) cent for each full 0.3 points the August 1989 C.P.I.exceeds the base for calculation. (b) The second payment shall be calculated and paid the first pay period following January 31, 1990. It will reflect one (1) cent for each full 0.3 points the December 1989 C.P.I. exceeds the August 1989 C.P.I. (c) The third payment shall be calculated and paid the first pay period following May 31, 1990. It will reflect one (1) cent for each full 0.3 points the April1990 C.P .I. exceeds the December 1989 C.P.I.

5. The interim increase will be considered as earnings, but will be boxed from other wage payments on the employee's statement of earnings and deduction slip.

6. fu the event Statistics Canada does not issue the appropriate Consumer Price fudex on or before the date on which a payment is to be calculated, any payment required will be made at the beginning of the first pay period following receipt of the index.

7. No payments retroactive or otherwise shall be made due to any revision which may later be made in any published Consumer Price fudex by Statistics Canada.

8. Continuation of the interim payments is dependent upon the availability of the official Statistics Canada Consumer Price fudex, calculated on the same basis and in the same form as published for June, 1980.

9. Computation for interim increases will be based on hours worked and hours paid for, including earnings for any payment under the S.W.A.P. Agreement and overtime.

10. C.O.L.A. will be folded in at the end of each contract year and become incorporated into the rates.

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LETTER OF UNDERSTANDING #1

APPRENTICES

The company recognizes the importance of technical skill level required for both the skilled trades and set-up functions. It is therefore the intent of the company to continue our practice of training skilled trades through an apprenticeship program as well as provide upgrading opportunities for set-up operators to continually upgrade their skill levels.

1. APPRENTICESHIP PROGRAM:

Participants are required to attend three in-school sessions of eight weeks each, plus complete four periods of2,000 hours of on-the-job training, unless schooling has been completed prior to starting the apprenticeship program.

Hours are accumulated to a maximum of forty ( 40) hours per week. During the eight week in-school training the employee will be on Unemployment Insurance and any other training monies available through the Ministry of Universities and Colleges.

We reserve the right to terminate or place trainees in other jobs at our discretion if satisfactory progress is not made.

For the duration of this contract, the Company agrees to have one employee participate in a formal apprenticeship for an Industrial Mechanic (Millwright), Electrician, Moldmaker, or Machinist registered with the Apprenticeship Branch of the Ministry of Training, Colleges and Universities. In the event of a layoff within the skilled trades group, it is agreed that the apprentice within the applicable group will be laid off first. The apprentice will then be entitled to exercise their seniority rights in accordance with the provisions ofthis agreement.

Apprentices will be selected based on the following criteria: (1) Meet the educational requirements as outlined by the government program, (2) Qualifications and (3) Seniority

The rates for the above job will be:

70% - Skilled Trades Grade A: To start 75% - " " " After 80 days 80% - " " " After 2000 hours 85%-90%-

" "

" "

" "

After 4000 hours After 6000 hours

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95%- " " " After 8000 hours 100%- Upon successful completion and receipt of Millwright papers.

2. UPGRADING OF SET-UP SKILLS:

To provide educational support for those employees not involved in the formal apprenticeship program, the company has established a structured program of courses for the employee to advance through education and increased job performance.

The intent of this program is to increase the skill level of operators performing the set-up function as well as to have a pool of employees of increasing skill level who will be capable of moving into the formal apprenticeship program in the future.

Employees would be expected to complete these courses on their own time. When possible, the company would accommodate adjustments to shift schedules to provide the opportunity to enrol in evemng courses.

MAINTENANCE JOB CLASSIFICATION EDUCATIONAL REQUIREMENT CLASSAA Industrial Mechanic (Millwright) or Electrician

(provincial certification) + one additional provincial license approved by the company.

CLASS A Industrial Mechanic (Millwright) or Electrician (Provincial Certification)

CLASSB Industrial Maintenance Apprentice Or 4th class Power Engineer

SET-UP JOB CLASSIFICATIONS EDUCATIONAL REQUIREMENT CLASS 1 Completed 9 modules Maintenance Course CLASS2 Completed 7 Modules Maintenance Course CLASS 3 Completed 5 Modules Maintenance Course CLASS4 Completed 2 Modules Maintenance Course

. (Previously Set-up Class AA) CLASS 5 Completed: Previously Set-up Class A Trade Calculations .QI Grade 11 Technical

Math plus - Electricity & Motor Controls - Welding for Mechanical Maintenance

CLASS 6 Completed: Previously Set-up Class B) Introduction to Pneumatics and

Introduction to Hydraulics Or another two similar Maintenance Courses -Related verifiable job experience (miu.2 years)

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Those currently in Class 7 must take and pass the Pneumatics and Hydraulics requirements of the Set Up classification within nine (9) months of date of ratification of this contract. Time frame for completion shall be mutually extended based upon course availability. After which time those employees will then be moved into the Class 6 Set Up. Failing to enroll and pass these requirements will result in removal from the set up classification.

3. JOB DESCRIPTIONS:

The intent of the program is to provide opportunities to work under the direction of a "licensed tradesperson" for specific projects in order to gain experience and hours towards a formal apprenticeship at a later date. In the event it is necessary to contract out maintenance work, the provisions of Article 12.07 shall apply. Hours spent working under the direction of a licensed tradesperson from an outside contractor will be recognised under this program.

Set-up Operators: Class 5. 6 & 7 The current job descriptions on file for Set-up Operator would continue to apply with the following duties added as part of our ongoing QS9000 program:

During each Set-up Inspect steam water and air hoses for wear Inspect fill and drain vales for wear Inspect hopper fill line nipples Inspect receiver frame alignment pins Inspect modulating valves for operation Check gauges (air /system/water/hyd) operation Inspect chest for stripped fasteners Lubricate and clean slider bars Inspect support bars for worn & seized bolts Inspect product slides and push doors

Monthly check Check for hydraulic oil leaks on cylinders and pumps Check air leaks on headers

Classes 1. 2. 3 & 4: In addition to the regular set-up duties including the schedule listed above, these groups would be involved in the following:

• Replace or repair any of the above listed items, when assigued by their Supervisor and under the direction of a licensed Tradesperson.

• Employees must have completed the educational requirement of Class 4 prior to assisting with these tasks.

Classes 1. 2 & 3: In addition to the regular set-up duties including the schedule listed above, these groups would be involved in the following:

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• Change motors and hydraulic components when assigned by their Supervisor and under the direction of a licensed Trades person.

• Assist licensed Tradesperson as assigned by the Supervisor, on any maintenance functions in order to increase qualifYing hours towards a future apprenticeship.

Maintenance Mechanic: The current job descriptions on file for Maintenance would continue to apply for Classes B to AA.

4. GENERAL GUIDELINES FOR BOTH PROGRAMS:

1 Once the education and job performance qualifications have been met, the employee will be given the opportunity to advance to the next classification within their Job Group.

2. Movement from the Set-up Job Group to the Maintenance Job Group will be based on a full time opening, which will be posted when a position is available.

3. The company reserves the right to modifY, amend or change the job requirements based on availability of courses.

4. Annual job performance reviews will be conducted in order to provide the employees with a clear direction on their performance and educational requirements.

5. For both programs, the company agrees to pay for the cost of tuition, books and other related materials upon successful completion of the course.

6. For employees currently employed at Set-up Operators as of June 30, 2002, these employees will be "grandfathered" into the new system at the new equivalent to their old level. The employee will be able to progress under the old criteria until Class 4, at which point they will be required to meet the new criteria to move into higher classes.

7. Newly hired employees may be brought into a classification based on their educational background and prior experience.

8. A review meeting will be held quarterly with management and the Union to discuss the progress of the program.

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JOB TITLE: GROUP "A"

Tool & Die I Machinist- AA Tool & Die I Machinist- A Tool & Die I Machinist- B

Maintenance Mechanic- AA Maintenance Mechanic- A Maintenance Mechanic - B

JOB TITLE: GROUP "C"

Set-up Operator- Class 1 Set-up Operator- Class 2 Set-up Operator- Class 3 Set-up Operator- Class 4 Set-up Operator- Class 5 Set-up Operator- Class 6 Set-up Operator- Class 7

APPENDIX "A"

RATE Eff. 711101

21.58 20.91 20.25*

21.58** 20.38 19.72

19.72 18.79 17.79 16.79 15.80 15.13 14.67

* Note that Apprentices will be paid based on a percentage of the A rate. **Replaces current A-AAA requiring two tickets. Current A-AA employees would be handled as Green Circle for the amount of the difference between their current rate and the Class A rate until they achieved the qualifications for Class AA.

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LETTER OF UNDERSTANDING #2

New Concept on Hours of Work

1. On a two shift scenario, day and afternoon shifts work ten (1 0) hours on straight time for four days per week.

In a week with a statutory holiday, hours would revert back to eight (8) hours per day for each shift.

2. On a straight day shift operation, a ten hour shift could be instituted (again, statutory holidays would mean eight hour days).

3. The main concepts would include:

- management retains the right to determine production schedules - no one loses, no one gains - different hours may exist in different divisions and departments - no efficiency loss - possibility of staggered shifts eg. Mon - Thurs./Tues - Fri.

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LETTER OF UNDERSTANDING #3

CASUAL EMPLOYEES

1. "Casual Employees" are defined as those working less than twenty-five (25) hours per week based on a twelve (12) week average.

2. Casual Employees do not qualify for the Welfare Benefit Plan, the Pension Plan or floater holidays until they satisfy the requirements of a fulltime employee (working twenty-five (25) hours or more per week based on a twelve (12) week average).

3. When a Casual Employee has completed the eighty (80) working days as their probationary period, such employee's seniority date shall be four ( 4) months prior to the eightieth (80) day.

4. Casual Employees will be used when full time employees are not available to perform work. It is not the intention of the company to replace fulltime employees with casual employees.

5. Casual employees may be required to work overtime up to a minimum of eight (8) hours per week without regard to July and August restrictions as specified in Article 7 .12.

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SUPPLEMENT

The following sections, although included in this Booklet for the convenience and reference of all personnel, do not constitute part of the Collective Labour Agreement, however, attention is drawn to the possible disciplinary action which may result from violations.

PLANT RULES

These rules are not intended to interfere with personal rights, but are a guide to satisfactory conduct required to maintain the necessary disciplinary standards in the plant. The list of rules is not intended to be complete and personnel are warned that violations of any Plant Rules will be sufficient gronnds for disciplinary action ranging from reprimand to discharge.

All the following acts or infractions are strictly FORBIDDEN:

SECTION I -SAFETY & HEALTH

1. Smoking in restricted area.

2. Reporting for work under the influence of alcohol or illicit drugs.

3. Bringing in or consuming alcoholic beverages or illicit drugs on Company Property.

4. Fighting, threatening, intimidating, interfering with fellow employees, or horseplay on Company property.

5. Improper use of or tampering with safety guards or air hoses.

6. Operating mobile power equipment, machinery or welding equipment without appropriate authorization.

7. Littering by improper disposal of refuse.

8. Wearing improper apparel, shoes and clothing and not using appropriate personal protective equipment where required.

9. Disregarding safety rules and practices including careless material stacking.

10. Glasses must be worn at all times while in the plants. If the employee does not wear prescription glasses, safety glasses will be provided. If these safety glasses are lost or broken through negligence, the employee will be required to replace them.

11. Open toed shoes or canvas type shoes are not permitted on the production floor.

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12. Anyone who spends time on the production floor must not wear rings or dangling jewellery.

13. Unauthorised visitors in the plant.

SECTION II- TIMEKEEPING

1. FalsifYing time records.

2. Repeated failure to punch time clock.

3. Unauthorized absence.

4. Frequent or continued absenteeism.

5. Habituallateness.

6. Leaving department, normal working area, or plant during working hours without Supervisor's authorization, except as required in performance of duties.

7. Unauthorized late starting or early quitting.

SECTION III- INSUBORDINATION

1. Refusal or failure to follow instructions or to do work as assigned.

2. Refusal to obey orders of Foreman or other members of the supervisory staff.

3. Interference with the operation of any staff department.

SECTION N -PERSONAL CONDUCT

1. Stealing from each other or from the Company.

2. Misusing or removing from Company property without proper authorization, Company materials, property or products including tools, blueprints, data or documents.

3. Deliberately damaging Company tools, machines, materials or equipment.

4. Abusing or defacing property of Company or other employees.

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5. Immoral or indecent conduct on Company property.

6. Gambling, running books, handling betting slips or operating games of chance on Company property at any time.

7. Restriction of output by any means.

8. Wasting time or loitering during working hours.

9. Careless workmanship resulting in: loss of material or production, increased cost, tool damage, equipment damage, etc.

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