COLLECTIVE AGREEMENT NESTLE ICE CREAM, LONDON, ONTARIO UNIFOR LOCAL 2003-E

Transcription

1 COLLECTIVE AGREEMENT _ BETWEEN: NESTLE ICE CREAM, LONDON, ONTARIO (hereinafter referred to as the "Company") - and - UNIFOR LOCAL 2003-E (hereinafter referred to as the "Union") CONTRACT TERM: May 21, 2015 to February 28, 2018 COLLECTIVE AGREEMENT LONDON OPERATING ENGINEERS

2 TABLE OF CONTENTS ARTICLE PAGE ARTICLE 1 - PURPOSE Page 4 ARTICLE 2 - RECOGNITION... Page 4 ARTICLE 3 - UNION SECURITY Page 5 ARTICLE 4 - MANAGEMENT RIGHTS Page 5 ARTICLE 5- REPRESENTATION Page 6 ARTICLE 6 - GRIEVANCE PROCEDURE... Page 7 ARTICLE 7 - ARBITRATION... Page 8 ARTICLE 8 - MANAGEMENT GRIEVANCES Page 9 ARTICLE 9 - DISCHARGE CASES Page 9 ARTICLE 10 - NO STRIKES - NO LOCKOUTS Page 9 ARTICLE 11 - SENIORITY Page 10 ARTICLE 12- HOURS OF WORK, OVERTIME, STATUTORY HOLIDAYS, etc.page 12 ARTICLE 13- RATES OF PAY Page 12 ARTICLE 14 -VACATIONS WITH PAY Page 12 ARTICLE 15 - PENSION PLAN Page 12 ARTICLE 16 - DURATION OF AGREEMENT... Page 14 SCHEDULE "A" HOURS OF WORK, WORK WEEK, OVERTIME, DAYS OFF, STATUTORY HOLIDAYS, ETC SECTION 1 - HOURS OF WORK, ETC... Page 15 SECTION 2 - GENERAL Page 17 SECTION 3 - STATUTORY HOLIDAYS... Page 20 SECTION 4 - MEAL ALLOWANCE... Page 21 SCHEDULE "8 " RATES OF PAY Page 22 Page 2

3 SCHEDULE "C"VACATIONS SECTION 1 - CONDITIONS Page 23 SECTION 2-VACATION PAY Page 23 SECTION 3 - SERVICE REQUIREMENTS AND LENGTH OF VACATION... Page 24 SECTION 4 - EFFECTIVE DATE Page 24 LETTER OF UNDERSTANDING TIGER BONUS PROGRAM Page 25 LETTER OF UNDERSTANDING LIEU DAYS Page 26 LETTER OF UNDERSTANDING EARLY RETIREMENT INCENTIVE Page 27 LETTER OF UNDERSTANDING DISCIPLINARY RECORD Page 28 Page 3

4 COLLECTIVE AGREEMENT BETWEEN: NESTLE ICE CREAM, LONDON, ONTARIO (hereinafter referred to as the "Company") - and - UNIFOR LOCAL 2003-E (hereinafter referred to as the "Union") ARTICLE 1 - PURPOSE 1.01 The general purpose of this Agreement is to establish mutually satisfactory relations between the Company and its employees and to provide machinery for the prompt and equitable disposition of grievances, and to establish and maintain satisfactory working conditions, hours of work and wages for all employees who are subject to the provisions of this Agreement. ARTICLE 2 - RECOGNITION 2.01 The Company recognizes that the Union through a duly elected committee of the members thereof, hereinafter provided for, shall be the sole bargaining agent for all of its employees who are employed as Operating Engineers and Refrigeration Operators employed as such by the Company at its plants located in the City of London, in the Province of Ontario, with the following exceptions: a) persons hired for part-time, working twenty-four (24) hours or less per week, and b) persons hired for vacation period, relief or seasonal work, provided, however, that any such person employed continuously for a period of more than eight (8) months shall be included in the bargaining unit No Discrimination There shall be no discrimination by either the Company or the Union against any person in regard to employment with the Company or membership in the Union because of race, creed, sex, colour, nationality, ancestry or place of origin, ethnic origin, citizenship, sex, sexual orientation, age, marital status, family status, disability. Page4

5 In this Agreement, wherever the masculine gender is used, it shall be construed to be the feminine or masculine as the contract requires. ARTICLE 3 - UNION SECURITY 3.01 All employees in the bargaining unit shall remain members of the Union in good standing during the lifetime of this Agreement as a condition of employment All new employees in the bargaining unit, upon completion of probationary period, shall become and remain members of the Union in good standing during the lifetime of this Agreement as a condition of employment The Union and/or the employees covered by this Agreement will not engage in Union activities during working hours or hold meetings at any time on premises of the Company without the permission of the Director, Human Resources, or his/her designate The parties agree that there shall be set up a check-off compulsory upon all employees from commencement of employment and who come within the unit to which this Agreement applies Such check-off shall continue during the period of this Agreement. The amount to be deducted shall be such sum as may from time to time be assessed by the Union on its members according to its constitution for general Union purposes. Such deduction shall be made weekly and shall be remitted by the end of each month, where possible to the Secretary-Treasurer of the Union. The said sums shall be accepted by the Union as the regular monthly dues of those employees who are or shall become members of the Union and the sums so deducted from nonmembers of the Union shall be treated as their contribution toward the expense of maintaining the Union. The amount to be deducted shall be any amount as may be set by the Union, from time to time as their regular monthly dues. The Company will provide current address and telephone numbers with monthly remittance There shall be an initiation fee of Twenty-five Dollars ($25.00) to be deducted upon completion of the probationary period. ARTICLE 4 - MANAGEMENT RIGHTS 4.01 The Union acknowledges that it is the exclusive function of the Company to hire, promote, demote, transfer, classify, reclassify and suspend employees, and also the right of the Company to discipline or discharge any employee for just cause, provided that a claim by an employee who has acquired seniority that he has been Page 5

6 discharged or disciplined without just cause may be the subject of a grievance and dealt with as hereinafter provided The Union further recognizes the right of the Company to operate and manage its business in all respects in accordance with its commitments and responsibilities. The location of the plants, the products to be manufactured, the schedules of production and sales 1 the assignment of work, the methods, processes and means of manufacturing and distributing used, the right to decide on the number of employees needed by the Company at any time, the right to use improved methods, machinery, and equipment and jurisdiction over all operations, buildings, machinery, tools, and employees at the London Branch are solely and exclusively the responsibility of the Company. The Company also has the right to make and alter from time to time rules and regulations to be observed by the employees and agrees that these functions will not be exercised in a manner inconsistent with the provisions of this Agreement. ARTICLE 5 - REPRESENTATION 5.01 The employees shall select and the Company shall recognize up to two (2) Stewards who will form the Grievance and Negotiating Committees including the National Representative. A Steward shall be a full-time employee on the Company's payroll and must have completed the probationary period prior to selection. The Company shall be advised in writing of the names of the Stewards promptly after the election or appointment thereof indicating the Chief Steward If the Union or any employee desires to post notices in the plant, such notices shall be first submitted to the Respective Plant Manager for approval. Neither the Company, the Union nor any employee shall make any change in such notice thereafter. Bulletin Boards shall be provided by the Company for notices and no notice shall be posted except on such Boards There shall be no distribution or posting by employees of pamphlets, advertising or political matter, cards, notices or any other kind of literature upon the Company's property, or upon the Company's time, except as herein provided It is agreed that any employee covered by this Agreement, who is an officer of the Union, will be given every consideration in making it possible for him to attend all meetings of the Union when his presence is required, providing there is no additional expense to the Company, and that mutual arrangements have been made for his period of duty Employees who are elected or appointed to an official position with the Union shall be granted, upon written request, leave of absence for a period not exceeding one Page 6

7 year, and shall retain full seniority rights. It is understood that all insurance and welfare benefits shall be cancelled during such leave of absence, and that, in the event of a demotion or discharge brought about by the return of such an employee, the junior man affected shall have no recourse to grievance procedure a) b) c) d) No seniority employee will be disciplined or discharged without just cause. A Union steward shall be informed of any discipline taken against an employee. Where possible, an employee will be entitled to have a steward present during a disciplinary meeting. The Company will provide the reasons for the discipline to the employee and the steward at the disciplinary meeting if the steward is present or within forty-eight (48) hours of the disciplinary meeting. When an employee has been dismissed, and subject to approval by the Company, the employee may be allowed to meet with a steward for a period not to exceed twenty (20) minutes. A discharge of an employee shall be treated in accordance with Article 9.01 of the Collective Agreement Employees may review their file in accordance with Company policy. The Company will also ensure that the Union is copied on any disciplinary action given to an employee The Company will provide each employee of the bargaining unit with one (1) copy of the Collective Agreement once per contract term. ARTICLE 6 - GRIEVANCE PROCEDURE 6.01 Wherever in this article time is provided for the doing of any act or thing, such time shall be exclusive of Statutory Holidays and Weekends. It shall be optional with the Company to decline to consider any grievance, the alleged circumstances of which originated or occurred more than ten (10) working days from when the employee ought to have known. Step One 6.03 i) The parties to this Agreement are agreed it is of the utmost importance to settle complaints and grievances as quickly as possible. An employee shall have the right, in company with the steward, to discuss a verbal complaint involving any controversy, misunderstanding or dispute with his immediate supervisor. This meeting shall be held within 24 hours of the time of the Page 7

8 alleged complaint and the immediate supervisor shall give his answer within 24 hours. Step Two ii) If the reply is not satisfactory an employee shall have the right to file a formal grievance and to have a meeting held with the Steward, Chief Steward, immediate Supervisor and Department Manager. This meeting must be held within five (5) working days of the alleged grievance and the immediate Supervisor will give a reply within forty-eight (48) hours. Step Three iii) If the reply is still not satisfactory a meeting with the Employee, the Steward, Chief Steward, National Representative, Department manager, Director, Human Resources, or his/her designate, shall be arranged as soon as possible. The Director, Human Resources, or his/her designate shall give his/her reply, in writing, within forty-eight (48) hours In the event that the party grieving does not proceed within the time limits specified in this article, the grievance shall be considered null and void. In the event that the party responding to the grievance fails to reply within the time limits specified in this article, the grievance shall proceed to the next step automatically A Policy Grievance may be brought forward by eitherthe National Representative or Chief Steward of the Union or the Company at Step #3 within thirty (30) calendar days after the circumstances giving rise to it occurred. ARTICLE 7 - ARBITRATION 7.01 Both parties to this Agreement agree that any dispute or grievance concerning the interpretation or alleged violation of this Agreement, which has been properly carried through all the steps of the grievance procedure outlined above and which has not been settled, will be referred to a sole Arbitrator at the request of either of the parties in writing. The notice shall contain at least three (3) names proposed as the sole arbitrator and shall be delivered to the other party within twenty (20) days of the reply under step 3 of the grievance procedure If the parties cannot agree on a sole arbitrator within fourteen (14) days from the date of notice to arbitrate, the party desiring arbitration shall apply to the Minister of Labour for the Province of Ontario for the appointment of an arbitrator pursuant to the Ontario Labour Relations Act No person may be appointed as sole arbitrator who has been directly involved in attempts to negotiate or settle the grievance. Page 8

9 7.04 The decisions of the sole Arbitrator shall be binding on both parties The sole Arbitrator shall not have any power to alter or change any of the provisions of this Agreement or to substitute any new provisions for any existing provisions, nor to give any decision inconsistent with the terms and provisions of this Agreement subject to the provisions of the Ontario Labour Relations Act Section 48 (12) U) Each of the parties to this agreement will jointly bear the expenses of the arbitrator. ARTICLE 8 - MANAGEMENT GRIEVANCES 8.01 It is understood that Management may bring forward at any meeting held with the Committee any violation of the Collective Agreement by the Union, its officers or the Committeemen and that, if such violation is not settled to the mutual satisfaction of the conferring parties, it may be treated as a grievance and referred to arbitration in the same way and to the same extent only as the grievance of an employee. ARTICLE 9 - DISCHARGE CASES 9.01 The following special procedure shall be applicable to a grievance alleging improper discharge of an employee who has obtained seniority. The discharged employee shall present the grievance, if any, in writing, either direct or through the Committee to the Department Manager, at any time within the five (5) normal working days following the day on which the discharge takes place and a meeting held as in 6.03(iii) and the Management will review the discharge with the discharged employee and the Committee and render its decision in writing within five (5) normal working days after the said review. ARTICLE 10 - NO STRIKES - NO LOCKOUTS In view of the orderly procedures established by this Agreement for the settling of disputes and the handling of grievances, the Union agrees that, during the life of this Agreement and as per the Labour Relations Act, there will be no strike, picketing, slowdown or stoppage of work, either complete or partial, and the Company agrees there will be no lockout. The Union agrees that it will not involve any employee in any dispute which may arise between the Company and any other bargaining unit The Company shall have the right to discharge or otherwise discipline employees who take part in or instigate any strike, picketing, stoppage or slowdown, but a claim of unjust discharge or treatment may be subject of a grievance and dealt with as provided in Articles 6 and 9. Page 9

10 ARTICLE 11 - SENIORITY Fundamentally, rules respecting seniority are designed to give employees an equitable measure of security based on length of continuous service in the Bargaining Unit with the Company An employee will be considered probationary for the first six (6) months' service and will have no seniority rights during that period. After six (6) months' service, his seniority shall date back to the day on which his employment began. Appendix A section 2.04 a) will continue to apply Employees mentioned in Article 2.01 (c) upon completion of six (6) consecutive months' employment within any period of twelve (1 2) consecutive months, shall be entitled to seniority from commencement of the six (6) consecutive months' service The Committee shall be entitled at all reasonable times to a seniority list, and the Company shall post the seniority list, as revised from time to time, on the bulletin board hereinafter provided for and send a copy to the Union Office once a year Job Postings (a) All job vacancies within the bargaining unit shall be posted for a period of three working days on the Union bulletin board. Where qualifications for the job are relatively equal the senior qualified applicant shall be given the position. The successful applicant shall be given a trial period of up to 90 days in length and if during this trial period the applicant fails to perform his duties satisfactorily he shall be returned to his former position and the next senior qualified applicant will be selected. (b) Employees promoted or transferred from the Bargaining Unit to positions not covered by this Agreement will retain their bargaining unit seniority accumulated to the date of promotion or transfer and for a period of six months thereafter. After the six (6) month period, the Company shall have sole discretion of an employee returning to the bargaining unit. If an employee is returned to the bargaining unit after the six (6) month period, the employee will be treated as a new hire for seniority purposes. However. the employee will not be required to serve a probationary period and the date of hire with the Company will determine vacation entitlement. Page 10

11 11.06 Any employee who is transferred from another Nestle Factory may bring his years of service for Company Service Provisions and vacation entitlement. Any agreement will be discussed with the Union In the event of an employee suffering a major disability in the course of his employment, the parties will meet to discuss potential accommodation for the employee including any other issues relating to W. S. I. B. Disability resulting from an accident while engaged in work of the Company shall not be sufficient cause for dismissal Seniority rights shall cease for any one of the following reasons: (a) If the employee quits, or the employee shall be deemed to have quit when: i) He gives notice of his desire to leave the Company's employment. ii) iii) He is absent for more than three (3) days without obtaining a leave of absence, but the Company will give reasonable consideration to the circumstances. He fails to report for work at the expiration of a leave of absence unless he provides a reason acceptable to the Company. (b) (c) If the employee fails to reply to the Company within seven (7) days of his recall notice or, even if the employee replies within seven (7) days, he fails to report to work within fourteen (14) days. Recall notice shall be delivered or mailed to the last address given to the Company by the employee. If the employee is discharged for just cause and not reinstated pursuant to the Grievance Procedure. (d) In case of non-employment by the Company for a period of twenty-four (24) months. Action by the Company under subsection (a) and (b) shall be subject to grievance procedure If there is a general reduction in the number of employees, probationary employees shall be the first laid off and thereafter further layoffs will be determined by ability to perform the work required and seniority within the department. In the event of layoff only the Chief Steward shall have preferred seniority, regardless of length of service, providing he has the necessary certificate of qualification The Company will avoid jobbing out, or bringing in services that will result in the layoff of present employees. Page 11

12 ARTICLE 12-HOURS OF WORK, OVERTIME, STATUTORY HOLIDAYS, ETC The hours of employment, overtime regulations, and statutory holidays shall be as set forth in Schedule "A" hereto annexed. ARTICLE 13 - RATES OF PAY Rates of pay shall be as set forth in Schedule "B" hereto annexed. ARTICLE 14-VACATIONS WITH PAY Vacations with pay, as set forth in Schedule "C" hereto annexed shall be granted to employees of the Company at times to be determined by the Company to the extent, and to the employees qualifying therefore, in accordance with the provisions of the said Schedule. ARTICLE 15 - PENSION PLAN Eligible employees hired before May 22, 2015 participate in the Nestle Canada Inc. Hourly Ice Cream Division Pension Plan (Defined Benefit). A copy of the plan will be made available to these employees. Eligible employees hired on or after May 22, 2015 will participate in a new Defined Contribution pension plan. New Defined Contribution (DC) Pension Plan Provisions: Every employee receives a Company contribution of 2% of base salary* towards their pension and retirement savings. Each employee wi ll make a mandatory contribution of 2% of base salary towards their pension and retirement savings and the Company will match the contribution at.75% per each % contributed for a total of 1.5%. (*Base salary for all pension is defined as the employee's hourly rate to a maximum allowable limit of 2080 hours worked. Base salary does not include overtime.) Each employee can choose whether they would like to make additional voluntary contributions towards their retirement savings. Employees will have the option to contribute 0%, 1 % or 2% of their base salary and the Company will match the contribution at 125%. Employees can change their contribution level and the change will be effective the 1st of the following month of the next available payroll cycle (based on payroll cut-off dates) and notice to the employer, in accordance with Page 12

13 the plan. This means that if an employee contributes the maximum 4% of base salary (mandatory plus voluntary contributions), the Company will match and contribute 6% of base salary to their retirement savings, for a total of 10%. (See chart below.) Mandatory Voluntary Employer: Employee: Employer (75% of ee 2% mand): Employee: Employer (125% of ee 2% vol): New Hire DC Plan 2.00% 2.00% 1.50% 2.00% 2.50% 10.00% Page 13

14 ARTICLE 16-DURATION OF AGREEMENT This Agreement shall remain in force to February 28, and shall continue in force from year to year thereafter unless in any year not more than ninety (90) days, and not less than thirty (30) days, before the end of any yearly period, either party shall furnish the other with notice of termination of, or proposed revision of, this Agreement All notices required to be given pursuant to the provisions of this Agreement shall be in writing and shall be sufficient if sent by Registered Mail, if to the Union, to the National Representative thereof at his address on record with the Company, or if the Company, addressed to the Director, Human Resources, or his/her designate, London District, NESTLE ICE CREAM, LONDON, ONTARIO Limited, 980 Wilton Grove Road, London, Ontario. IN WITNESS WHEREOF the Company has affixed its corporate seal evidenced by the signatures of its proper officers thereunto properly authorized and the proper officers of the Union have set their hands and seals, DATED AT London, Ontario, this day of May, FOR THE COMPANY FOR THE UNION ~- Shirley Dong Lloyd Currie ~~~ Jason St. Pierre,,;- Fergo Berto Page 14

15 SCHEDULE "A" HOURS OF WORK, WORK WEEK, OVERTIME, DAYS OFF. STATUTORY HOLIDAYS, ETC. While the five day work week is in effect, the following rules shall apply, it being understood that the Company to maintain essential services in abnormal, unusual, or emergent circumstances, may change the normal schedule of workdays and may require employees in any department to work extra days provided that the conditions, hereinafter contained, covering such extra days are observed. SECTION 1 - HOURS OF WORK. ETC Regular Work Week The arrangement of weekly work periods are to be determined by the Chief Operating Engineer. The weekly work rotation periods shall average 40 hours per week. The Shift Operator shifts are 12 hour shifts and the maintenance operator shifts are 8 hour shifts. After an employee has been paid for all of their overtime banked hours, prior to December 1 51, as per Letter of understanding on Banked Time, the Company will allow interested employees to work a fifth day at regular time during the maintenance week. Should the Company require employee to work the fifth day, it will be at regular time Overtime a) For employees working the maintenance work week and for the Assistant Chief Operating Engineer overtime will be paid after 8 hours. b) For employees working 12 hour shifts, overtime will be paid after 12 hours in a shift c) Overtime will be paid after the 40 hours average is exceeded in the work rotation period. d) Overtime work will be distributed as fairly and impartially as possible among the employees who are qualified to do the work. Refusal to accept overtime offered shall be considered as overtime worked. Page 15

16 1. 03 Days Off All employees shall be allowed two days off each work week, to run consecutively, except in case of emergency. Should an employee be required to work on his scheduled day off, he shall be paid at the rate of time and one-half (1 %) Sunday Shift Premium A premium of one times the regular rate shall be paid for any scheduled shift hours worked on Sunday. Employees required to work on a Sunday as an extra shift, or in excess of eight (8) hours shall be paid an additional half-time Lateness Employees may be penalized for lateness in reporting for work by deduction from pay for time not worked Call-in Pay If an employee is called in to work on his off time, during Monday to Saturday, four ( 4) hours of work will be made available to him and he will be paid at time and onehalf. The call-in, if it occurs on a Sunday, shall be at a minimum four (4) hours pay at the appropriate premium rate Reporting Pay Any employee reporting for work on instructions of the supervisor, but for whom no work is available will be permitted to work four ( 4) hours at his regular rate or will be paid four (4) hours at his regular rate in lieu of work. In the event of sickness or absence for any reason, an employee shall inform the supervisor before 5:00 p.m. of the day prior to the day on which he intends to return to work. If he fails to do so and reports for work, the above provisions covering reporting pay will not apply Premiums Overtime and premium provisions of this Schedule "A" shall not be pyramided, but the highest single premium shall apply Chief Engineer Page 16

17 The Chief Engineer shall not do such additional maintenance or shift work as will cause a reduction in the normal workday or week of those employees coming under the bargaining unit. SECTION 2 - GENERAL 2.01 Sickness Pay Absence through sickness for one, two or three days will be considered for payment at the discretion of Management. In cases where a claim is established under the Group Sickness and Accident Policy coverage, the Company may pay the employee's regular rate of pay for any working days falling within the first three (3) days of absence not covered by the Group Policy, at the discretion of Management. It is understood that payments under these provisions shall not exceed a total of forty (40) hourss in any Agreement year. Unused hourss will be paid out at the end of the calendar year Bereavement It is agreed that in the case of the death of an employee's spouse or child the employee may be granted, at the discretion of Management, up to a maximum of five (5) days leave of absence with full pay. It is agreed that in the case of the death of an employee's immediate family; i.e., parent. parent-in-law, brother, sister of the employee, the employee may be granted, at the discretion of Management, up to a maximum of three (3) days leave of absence with full pay. An employee may be granted a leave of absence of one (1 ) day without loss of pay to attend the funeral of a grandparent, a sister-in-law or a brother-in-law Jury Duty In the event of an employee being called to perform Jury Duty, or to act as a Crown Witness, the Company shall pay the difference between the pay received by the employee for such Jury or Witness Duty and his regular wages Insurance a) The Company will provide the following insurance plans, in keeping with the regulations and benefits of such plans, in effect on the effective date of this Agreement, or, on the first day of the month following ratification, where app licable, for all permanent employees with three (3) months seniority. i) Group Life Insurance and Accidental Death and Dismemberment Effective ratification 2015 $56,500 coverage for active eligible employees, $57,500 as of February and $58,500 as of Page 17

18 February 28, 2017 reducing to $1,000 at retirement for Group Life Insurance. ii) Group Sickness and Accident Insurance Coverage for each employee in an amount equivalent to sixty six and two-thirds % of regular weekly earnings up to a maximum of $600, for fifty-two (52) weeks to become effective on the fourth (4 1 h) day of any sickness or non-compensable accident. iii) Hospital, Medical & Surgical Insurance Ontario Health Insurance Plan, "semi-private" coverage. Major Medical coverage, no co-insurance, for each employee, spouse, and own unmarried children under twenty-one years of age. The Company will supply a drug card to each employee. iv) Optical Optical benefit which provides three hundred and seventy-five dollars ($375), once every twenty-four (24) months for eligible employees and dependents. The Company pays the full premium cost. v) Dental Benefit Dental Plan #9 with coverage for Crowns and Bridges at the 50% level. Dentures coverage at 50% up to a lifetime maximum of $2,000. The Company pays full premium cost. Reimbursement will be made based on the previous year's ODA fee schedule. A one (1) year lag will be maintained for the ODA fee schedule for each year of the collective agreement. vi) Long Term Disability % of E. I. maximum weekly earnings to a maximum of: May 22, 2015 $1,900 per month for new claims, increased to $2,000 per month on March 1, 2017 C.P.P. offset included in plan. Employer paid plan. NOTE: RE: Employee Benefit Premiums It is understood and agreed that the full employee's portion of any reduction in E.I. premiums resulting directly from E.I. approval of the improved Page 18

19 Company Weekly Indemnity Plan, are included as part of the negotiated wage increases contained in this Collective Agreement. During the absence of an employee through illness, all insurance coverage will be maintained by the Company up to a maximum of fifty-two (52) weeks. If the illness of the employee continues beyond fifty-two (52) weeks, the Sickness and Accident Insurance coverage will be suspended, but other coverage will be continued under the Company group plan at the employee's expense Clothing The Company will provide an adequate supply of coveralls, pants and shirts. It will continue to supply gloves as necessary. The wearing of safety shoes is mandatory. The Company will pay the cost for new safety footwear if the employee hands in the worn out footwear that is being replaced and the employee purchases the new footwear from a supplier selected by the Company Severance Pay If a layoff of an employee or employees is caused by the installation of automatic, labour-saving equipment, the Company will notify the Union and the employee or employees to be affected two months prior to the effective date of layoff, and severance pay will be made as follows: Less than 5 years service 5 to 10 years service 10 to 15 years service 15 to 25 years of service Over 25 years of service 1 week per year of service 1.25 week.s per year of service 1.5 weeks per year of service 1.75 weeks per year of service 2 weeks per year of service (a maximum of 52 weeks for employees hired after June 14, 2012) Severance pay will be paid in accordance with this schedule to all employees who are permanently laid off due to plant shutdown or transfer of operations. In all cases where this provision provides for less severance pay than Employment Standards Legislation the Employment Standards provisions will govern Licence Fees The Company will provide for a maximum of two (2) tickets per year for all employees covered by this Agreement. Page 19

20 SECTION 3 - STATUTORY HOLIDAYS 3.01 Consistent with essential production, maintenance, distribution and administrative services being maintained, and subject to the conditions of this Section as they apply to the respective Departments, the following policy will be observed in connection with the following Statutory Holidays. New Year's Day Good Friday Victoria Day Canada Day Boxing Day Civic Holiday Labour Day Thanksgiving Day Christmas Day The Company reserves the right to schedule any employee for duty on any of the above named holidays For the purpose of this Section a regular day's pay shall mean, in the case of hourly rated employees, eight (8) hours at the regular hourly rate of pay In the case of employees eligible for overtime, any of the above holidays falling on a regular scheduled workday and not worked shall count as a full day of eight (8) hours for the computation of overtime in the week in which the holiday occurs (a) An employee will be paid for statutory holidays named above provided he, (i) (ii) (iii) works his last fu ll regular scheduled shift before and his first full regular scheduled shift after such holiday; is on the active payroll of the Company and not on a leave of absence, sick leave, Workers' Compensation, or layoff; has completed a probationary period as outlined in this Agreement. (b) (c) An employee who works on a holiday, named above, shall receive two times (2x) his regular rate plus his holiday pay in accordance with 3.04 (a). An employee who works a twelve (12) shift on a holiday, will receive twelve (12) hours holiday. The employee will have the option of banking this holiday to be taken at a later time as per letter of Understanding on Banked Time. If a holiday, named above, falls on an employee's scheduled day off and the employee is not required to work, he shall receive in accordance with 3.04 (a) his regular day's pay or a day off with pay to be arranged by the Company prior to December 1 51 of each year. Page 20

21 (d) If a holiday, named above, falls on an employee's scheduled day off and the employee is required to work; provided the requirements of 3.04 (a) are met he shall receive, (i) consideration for the day, or portion thereof worked, in accordance with the provisions of Section 1.03 of this Schedule "A", as they apply, for work on days off and in addition, (ii) the provisions of 3.04 (c) shall apply Floating Holiday There shall be three (3) floating holidays equivalent to twenty-four (24) hours, observance of which is to be at a time mutually agreeable between the employee and the Company. Such requests shall not be unreasonably denied. Of the employee is granted a float day on a twelve (12) hour shift, they have the option to get paid for eight (8) hours or twelve (12) hours. The onus is on the employee to specify payment at the time they request the floater. It is agreed that if Heritage Day is proclaimed as a Statutory Holiday, one floating holiday will be deleted at the commencement of the calendar year in which Heritage Day is first celebrated. SECTION 4 - MEAL ALLOWANCE 4.01 The Company will pay the amount of six dollars and twenty-five cents ($6.25) to any employee who is called in three (3) hours before his regular shift or any employee who is required to work three (3) hours of overtime beyond his regular shift. Page 21

22 SCHEDULE "B" RATES OF PAY 1.01 The following wage rates shall apply for the respective classifications: HOURLY RATE CLASSIFICATION EFFECTIVE EFFECTIVE EFFECTIVE Ratification March 1, 16 MARCH 1, 17 (retroactive to March 1, 2015) 3rct Class Engineer $36.89 $37.63 $38.38 Chief Refrigeration Operator $40.34 $41.14 $41.97 Operating Engineer- Student Rate to be agreed upon each season 2.01 Off Shift Premium 3:00 p.m. to 11 :00 p.m. 55 per hour worked (including employees working the twelve (12) hour shift days) at ratification, increased to 60 on March 1, 2013, increased to 65 on March 1, :00 p.m. to 7:00 a.m. 65 per hour worked at ratification, increased to 70 on March 1, 2013, increased to 75 on March 1, Hour Shifts, Nights 85 per hour worked at ratification, increased to 90 on March 1, 2013, increased to 95 on March 1, 2014 The Off Shift Premium shall apply to all time worked on the above shifts, including Sunday, shall be incorporated in the calculation of overtime, and shall be added after computation of Sunday Premium. For the maintenance shift, Off Shift Premium will be paid when the majority of the shift falls within the above times. Off Shift Premiums will apply for all hours worked after 3:00 p.m. and before 7:00 a.m, under the conditions specified above Work in Higher Rated Position Permanent employees working in a higher paid position for a period of one shift or more, shall be paid the higher rate from the first shift worked in such position. Page 22

23 SCHEDULE "C" VACATIONS Vacations with pay shall be granted to all permanent employees of the Company, at times to be determined by the Company to the extent, and to the employees qualifying therefore, in accordance with the following provisions: SECTION 1 - CONDITIONS 1.01 Such vacations shall be based on length of continuous service with NESTLE ICE CREAM, LONDON, ONTARIO Limited. However, in the case of the companies or businesses acquired by Nestle interest, employees will be allowed credit to a maximum of five years of continuous service immediately preceding date of such acquisition, for the purpose of computing service for vacation credit Consistent with the maintenance of efficient operations in all departments, vacations will be scheduled by the Company, throughout the operating year Vacations must be arranged in the operating year in which they are due and cannot be accumulated. In exceptional cases, however, where it has been impossible to arrange regular vacation, then any vacation credit for the service year to April 1, not received prior to March 31 of the ensuing year, may be paid for in cash or equivalent time off Employees, leaving the employ of the Company during the operating year, April to March inclusive, shall be entitled to any vacation credit for the service year to April 1, not received, and in addition, credit pro rata for any service from April 1 to date of termination in accordance with schedule in effect If a Statutory Holiday, to which the employee is entitled, falls within the vacation period, an extra day will be allowed at the convenience of Management, but not necessarily added to the vacation period Where, not owing to illness or authorized absence, an employee has been absent from his employment in excess of one working day in each month of the working year, the excess will be deducted from the vacation period to which he would otherwise be entitled under the provisions of this Schedule, and his vacation pay reduced accordingly. SECTION 2-VACATION PAY 2.01 An Employee's vacation pay shall be computed on the average weekly earnings during the twelve (12) month period ending December 31st prior to vacation period. Earnings of the employees shall mean the amount reported by the Company on the T-4 Income Tax Return, less any taxable allowances or benefits. It is understood that, in the case of a permanent employee, who may have lost earnings during the twelve month period ending December 31s 1, by reason of sickness or injury, there shall be added to the amount shown on the T-4 Return for the purpose of computing vacation pay,, an amount Page 23

24 equivalent to the average earnings of the employee for a period of thirteen (13) weeks' absence through sickness or injury Vacation pay to employees with less than one (1) year of service prior to April 1 or date of termination of employment, will be paid in accordance with the terms of the Employment Standards Act, i.e., four per cent ( 4 % ) of the total earnings of the employee for all work done by him in the working year prior to April 1 or date of termination A ll deductions normally made from an employee's regular pay shall be deducted from the employee's vacation pay. SECTION 3 - SERVICE REQUIREMENTS AND LENGTH OF VACATION 3.01 All employees covered by this Agreement shall receive a vacation in accordance with their continuous service as shown below: Service Requirements i) After 3 months continuous service but less than 1 year prior to April 1 for each month of service ii) After 1 year prior to April 1 iii) After 5 years prior to April 1 iv) After 10 years prior to April 1 v) After 18 years prior to April 1 vi) After 27 years prior to April 1 Length of Vacation %day 2 weeks 3 weeks 4 weeks 5 weeks 6 weeks 3.02 In the case of employees entitled to a vacation credit of three (3), four (4), five (5) or six (6) weeks, it is understood the third, fourth, fifth or sixth weeks will be arranged by mutual agreement subject to the needs of the business being met. It is understood that the employee's request will not be unreasonably denied In conformity with Employment Standards Act, 2000, an employee who wants to take his or her vacation in periods of less than a week shall ask the Company in writing and the Company may grant such request at its discretion. It is understood that the employee's request will not be unreasonably denied. SECTION 4 - EFFECTIVE DATE 4.01 The provisions of this Schedule "C" shall apply to vacations to be granted during the term of the Collective Agreement or the service year ending March 31 of any given year. Page 24

25 LETTER OF UNDERSTANDING: TIGER BONUS PROGRAM In the spirit of co-operation, the Union and Company agree to work together to ensure the success of the factory. The Company will endeavour to effectively manage the business which includes providing the necessary materials and tools to meet the objectives of the factory. The Union will participate in Nestle Canada Foundations training, provide ideas and support improvements in the plant. Recognizing the Union's commitment to this program, the Company will provide a bonus plan: All active Full-time employees shall be entitled to receive the Nestle Bonus to a maximum of 5% of eligible earnings if the measurement criteria are exceeded. That is, the program must make money before it can pay out. A joint committee will be formed to develop the program with the above criteria as the basic measurement tools. The committee will meet to fully develop the plan. The plan that is developed will be sent to the Senior VP Human Resources, Senior VP Technical & Manufacturing, and the President, Ice Cream for final approval. Eligible earnings shall be defined as the employee's hourly wage rate as at the year-end multiplied by the number of hours he/she worked during the calendar year in question. Hours worked shall include W.I. and W.S.l.B. The total number of hours shall not exceed It is anticipated that the bonus earned for each year shall be paid out in February of the subsequent year for all active employees. DATED AT London, Ontario, this 21st day of May, 2015 FOR THE COMPANY FOR THE UNION Jeremy Tallevi ~~ hirleyong '~ J~s Lloyd Currie Fergo Berto L/ Page 25

26 LETTER OF UNDERSTANDING: LIEU DAYS Lieu Days Lieu days accumulated under Appendix "A" section 3.04 (c) and not scheduled by December 1 51 will paid to employees on the week of December 15 each year. The company will grant lieu days subject to business requirements, provided there is no need to cover the employee by overtime. Should an employee cover a shift to allow his co-worker to take a banked day, the employee will be working at regular time. DATED AT London, Ontario, this day of May, 2015 FOR THE COMPANY J~ ~ Lloyd Currie FOR THE UNION ~Pierre Page 26

27 LEITER OF UNDERSTANDING - EARLY RETIREMENT INCENTIVE For eligible employees in the Defined Benefit Pension Plan who elect to retire sooner than the normal retirement age of sixty-five (65), the company is prepared to extend limited drug benefits coverage subject to the following: A maximum of one employee during the life of the collective agreement will be considered. Employees must be sixty-two (62) years of age to become eligible. Drug benefits coverage terminates on their 65th birthday. The undertakings in this letter shall terminate on February 28, 2018 DATED AT London, Ontario, this day of May, 2015 FOR THE COMPANY - FOR THE UNION J~ Lloyd Currie ~~ shifleyong ~rre Page 27

28 LETTER OF UNDERSTANDING: DISCIPLINARY RECORD This letter is to confirm an understanding reached between the Company and the Union in respect to the disciplinary record of employees. The company agrees not to use the disciplinary record of an employee which exceeds a twenty-four (24) month period in matters of evidence during grievances or arbitration proceedings, or when assessing current discipline. DATED AT London, Ontario, this day of May, 2015 FOR THE COMPANY FOR THE UNION Page 28