<SAAL-OCK OF. OF AMERICA ON BEHALF OF ITS IJ(f)TIA:t ;9~042

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1 ,,, \ ~. RECErVED MAR 2 2 2(l'jf.. AGREEMENT BETWEEN!_'}!_!_~:_/ fo 5' :_ f) :J( J- CERT FILE G_ ~~!!!!.lr2jjofiqhj - ~:.1:\LE EfvtF S '"'"- H.;iLE EM=.Ps = <SAAL-OCK OF CAN~DA LTD. ~ CODWJf.~.~~7V SUB. PROVS COOED. AND u~nited STE,E~LWORKERS OF AMERICA ON BEHALF OF ITS IJ(f)TIA:t ;9~042 OFFICE OF Local Union 9042 MAR 3 1 ZOUO Oakville, Ontario Received- t...'nion COLLECTIVE BARGAINING INFORMATION DECEMBER 1, 1999 f-fecaivecl- ernployer 0 o~... TO ' v... etvod- other - NOVEMBER 30,

2 2 TABLE OF CONTENTS ARTICLE AND TITLE PAGE 1. Intent and Purpose Union Recognition and Scope of Bargaining Unit Management's Rights Union Security Checkoff Authorized No Strike-No Lockout Clause Union Activities on Company Property Notifications and Notices Seniority Grievance Procedure -Arbitration Disciplinary Action Hours of work and Overtime Wages Vacations Holiday Pay Leave of Absence Safety and Health Welfare Benefit Plan Duration of Agreement APPENDICES A. Wage Schedules B. Job Classifications C. Welfare Benefit Plan Agreement C-3. Life Insurance C-4. Hospital, Surgical, Medical Insurance C-5. Sick and Accident Insurance C-6. The Plan for Prescription Drugs, E.H.C. and Dental C-7. Retirement Income Plan C-8. Long Term Disability Insurance C-9. Layoff and Leave of Absence C-1 0. General Provisions Addendum Signature Page... 43

3 3 MEMORANDUM OF AGREEMENT This Agreement is made and entered into by Garlock of Cana.da Ltd. hereinafter referred to as the Company, and the ttj~rnite~:steelworkers of America on behalf of its Local Union 9'0~2 hereinafter referred to as the Union. Witness that: Pursuant to the terms of the Collective Bargaining Agreement between the parties and as a result of negotiations recently concluded in connection therewith, the Company and the Union do hereby agree as follows: Except as hereinafter specifically set forth and amended by this memorandum, all of the terms and provisions of the contract between the parties thereto, which contract is dated December 1, 1999 shall continue in full force and effect through November 30, ARTICLE 1 - INTENT AND PURPOSE 1.01 It is the mutual desire of both parties to promote co-operation and harmony and to provide an amicable method of settling any differences or grievances that may arise. Further, to keep in mind at all times that the welfare and prosperity of employees depends upon the Company's ability to compete successfully for business and to sell its products at a profit The contractual provisions contained herein are intended to comply with Federal and Provincial legislation. ARTICLE 2 - UNION RECOGNITION AND SCOPE OF BARGAINING UNIT 2.01 The Company recognizes the Union as the sole and exclusive bargaining agent of au hourly employees of Garlock of Canada Ltd. employed within the. confines of Toronto and its location at 2860 Plymouth Drive, Oakville, and except salaried employees and in accordance with the certification issued by the Ontario labour Relations Board dated November 12, The Company agrees to meet and bargain in good faith with the Union in matters concerning rates of pay, hours of work and other conditions of employment.

4 4 ARTICLE 2 - UNION RECOGNITION AND SCOPE OF BARGAINING UNIT (CONT ==D) 2.03 No employee excluded from the bargaining unit shall perform work normally performed by employees in the bargaining unit except in instances of training, experimenting, inventory and emergencies. ARTICLE 3 - MANAGEMENT S RIGHTS 3.01 It is recognized and agreed by the parties to this Agreement that the Company has the right to exercise all of its functions, powers and authority which have not been specifically delegated or modified by the express terms of this Agreement including, but not limited to, jurisdiction over matters concerning the management of the plant and the control and direction of the working force. ARTICLE 4 - UNION SECURITY 4.01 It shall be a condition of employment that all employees of the employer covered by this Agreement who are members of the Union in good standing on the effective date of this Agreement shall remain members in good standing and those ~ho are not members on the effective date of this Agreement shall become and remain members in good standing in the Union. Employees covered by this Agreement and hired on or after its effective date shall, at the beginning of such employment, become and remain members in good standing in the Union. These new employees shall sign an application for membership card at the commencement of employment The provisions of Section 4.1 shall not apply to any employee covered by this Agreement to who membership in the Union is denied or whose membership therein has been terminated for reasons other than the failure of such employee to tender his initiation fee or periodic dues Any employee who fails to meet the requirements of this article shall not be retained in the employ of the Company provided that the Union shall have notified the Company and the employee in writing of such default and said employee shall have failed to remedy same immediately after receipt of such notice.

5 5 ARTICLE 5 - CHECKOFF AUTHORIZED 5.01 The Company shall deduct from the pay of each member of the bargaining unit, weekly, such union dues, fees and assessment by the Constitution ofthe Union. The Company shall remit the amounts so deducted, prior to the fifteenth (15th) day of the month following, by cheque as directed by the Union, payable to the International treasurer The monthly remittance shall be accompanied by a statement showing the name of each employee from whose pay deductions have been made and the total amount deducted for the month. Such statements shall also list the names of the employees from whom no deductions have been made and the reasons why, along with any forms required by the International Union The Union shall certify to the Company in writing the rate of monthly dues which are uniformly required by the Union as a condition of acquiring or retaining membership The execution of the assignment on the part of the employees shall read as follows: "I, the undersigned, hereby authorize and direct Garlock of Canada Ltd. to deduct from my pay, first month's dues (if first month's dues are not to be deducted, draw a line through the words "first month's dues") and current monthly Union dues as established in accordance with the Constitution of the Union or Local Union Bylaws, and to be checked off in accordance with the Agreement and any extension thereof, such moneys to be forwarded to the United Steelworkers of America on behalf of its Local9042." "The assignment and authorization shall be irrevocable for the duration of this Collective Labour Agreement or any renewal thereof provided that if the termination of this Agreement or any renewal thereof is followed by the execution of a new Agreement, these assignments and authorizations shall be deemed to be automatically renewed for the duration of such new Agreement." Signature,Employee No. Date: This form is to be completed in triplicate: 1 copy to the Company, 1 copy to the Union and 1 copy to the employee.

6 'I The Union agrees to indemnify and save the Company harmless against all claims or other forms of liability that may arise out of, or by reason of, deductions made or payments made in accordance with this Article The Company agrees to record total union dues deductions paid by each employee on his/her T -4 Income Tax Receipt. ARTICLE 6 - NO STRIKE-NO LOCKOUT CLAUSE 6.01 The Union agrees that it will not order, take part in, encourage or authorize any strike, stoppage, slowdown or other interruption of work growing out of any dispute which is subject to the grievance procedures under the terms of this Agreement. The Union agrees that it will actively discourage and endeavour to prevent or terminate any strike, stoppage, slowdown or other interruption of work during the life of this Agreement. In the event that such an interruption of work occurs during the life of this Agreement, neither party shall negotiate upon the merits of the dispute until such time as the illegal action is terminated The Company agrees that, provided the terms of Paragraph 6.1 above have been observed by the Union, neither it nor its representative will put into effect any lockout during the term of this Agreement. ARTICLE 7 - UNION ACTIVITIES ON COMPANY PROPERTY 7.01 The Union or its representatives will call no meetings on Company premises or on Company time except with the written consent of the Company. The Company consent may only be given by the Director, Manufacturing and Engineering or the President or their specified delegates. Employees shall not cease work nor leave their place of work to conduct Union business without first having secured permission from their Supervisors The Company agrees to recognize a Union Negotiating Committee comprised of three (3) employees plus a Staff Representative. It is agreed that these members will act as committee persons in handling shop grievances Members of the Union Negotiating Committee, who are employees of the Company, will be paid for the time spent in the investigation of grievances occurring during their scheduled hours of work and for all meetings held with the Company during their scheduled hours of work. The Negotiating Committee will be paid eight hours for all scheduled days of meetings with the Company for the purpose of Contract negotiations. Committee persons shall be paid their regular hourly rate plus shift premium, if any, for the time thus spent.

7 , I The Company agrees to meet with the Union Negotiating Committee once a month unless changed by mutual agreement. Minutes of the Management Union Meeting will be reduced to writing and issued as approved In order to facilitate good communications the Company agrees to assign the Union President to the day shift. The Company further agrees to make a similar assignment available to the Union Vice President during periods when it is known that the President is to be away from the plant for a week or longer The Company agrees to provide space for the Union to maintain filing cabinets and suitable meeting space when required. ARTICLE 8 - NOTIFICATIONS AND NOTICES 8.01 Any notice required to be given pursuant to the terms of this Agreement shall be reduced to writing and shall be deemed complete when delivered to the Director, Manufacturing and Engineering of the Company or to the President of the Local Union The Company will provide bulletin board space for the purpose of posting union notices and bulletins having to do with Union meetings, election of officers and occurrences of a similar nature and involving relations between the parties to the Agreement. Prior to posting of any such material the Union shall submit a copy thereof to the Director, Manufacturing and Engineering for his approval. ARTICLE 9 - SENIORITY 9.01 Seniority shall be based on date of hire, or if seniority has been lost, on date of rehire Probationary Period- An employee shall be considered as being in probationary status until he has been in the employ of the Company for a period of sixty (60) standard working days, exclusive of shutdown. Standard work days as herein defined shall mean those days in which a new employee did work a regularly scheduled shift. During such probationary period the employee may be discharged by the Company without recourse by the Union. The Union shall be advised of the progress of probationary employees and shall be notified prior to all disciplinary actions taken against probationary employees. Upon satisfactory completion of the probationary period, the employee will be entered on the seniority list as of the date of his last hire.

8 ;. 8 ARTICLE 9 - SENIORITY (CONT'Dl These lists shall be maintained by the Company and posted to bulletin boards. Probationary employees who successfully complete their probationary period will not be eligible to bid on a job posting for a period of six (6) months from date of hire (a) Relief Employees: When regular employees are absent during the period of June 1 - October 1, it may be necessary to hire relief staff to fill their positions. These people will be classed as "relief' and their employment terminated on or before the stated time, but will not exceed sixty (60) standard working days. These time limits set forth may be extended by mutual agreement. The Union shall be notified at time of hire. In the event of a layoff for lack of work, relief employees shall be laid off first. If a relief employee becomes a regular employee the employee will be entered on the seniority list as of the first date of his last hire Job Progression- Seniority in respect to promotions and transfers to jobs will be maintained, as far as practical, on a plant wide basis. It is understood and agreed that plant seniority will govern the selection whenever one or more candidates have equal qualifications. Qualifications shall be understood to mean: "To demonstrate within ten (10) working days ability to learn the job." 9.04 Transfers- The term "Transfers" as used herein shall apply only to the following situations: (a) (b) (c) (d) The permanent reassignment of an employee from one job grade to another or same grade. The permanent reassignment of an employee from a job covered by this Agreement to a job not covered by this Agreement. The permanent reassignment of an employee from a job not covered by this Agreement to a job covered by this Agreement. Employees may be loaned from one job to another for a period not exceeding four (4) consecutive weeks. Such time may be extended by mutual agreement. When a loan exceeds five (5) standard working days, the Company shall present a copy of the written transfer notice to the Union.

9 ARTICLE 9 SENIORITY (CONT'D) If an employee is transferred to such job while on loan, his transfer date shall be that of the first day of loan Job Bidding -When a permanent opening occurs on a job which is covered by this Agreement, or a newly created job, notice of vacancy shall be posted in the plant for a period of forty-eight (48) hours. Selection shall be made in accordance with the provisions of Section 9.3. When an employee is selected to fill a vacancy hereunder he shall not be an eligible applicant for any other vacancy for a period of six (6) months from the date of new assignment. If an employee bids on a job posting, is selected and accepts but later refuses the job offer after the selection process has been completed, he/she shall not be an eligible applicant for any other vacancy for a period of six (6) months. This section shall not be applied for more than two (2) moves required as a result of the selection of an applicant. Should the applicant selected to fill the posted job fail to qualify after a reasonable learning period, he shall be returned to his original job and wage rate. When the vacancy is filled the employee will start at the hiring rate of the grade within which the job is classified and will progress through the rate progression steps as outlined in appendix A, unless, at the discretion of the Company the employee warrants a faster progression Layoff Procedures - The following procedures shall govern the layoff of employees for lack of work. These provisions shall not be deemed to include less than five (5) standard working days duration (with a maximum of five {5) standard working days per calendar year per employee). The Company agrees that when it is obvious at the outset that the layoff is to exceed five (5) standard working days, the following provisions shall apply at once. These time limits may be extended by mutual agreement of the parties. {a) (b) When it becomes necessary to lay off employees, probationary employees shall be laid off first. This does not apply to probationary employees working in skilled trades unless the layoff occurs within skilled trades group. When a further reduction is necessary, seniority will prevail in accordance with the following: Employees thus affected may replace the least senior employee provided that the work performed by the least senior employee affected can be performed by the more senior employee according to the established production standards for

10 ARTICLE 9 - SENIORITY CCONT'Dl the job following a period of training, not to exceed ten (10) standard working days. If for reasons of physical capability only, the senior employee is unable to perform the duties of the least senior employee he may replace the second or third least senior employee, in that order, subject to the terms as outlined. (c) (d) The Union Negotiating Committee shall not be laid off as long as there is work in the plant, the work to be allocated at the discretion of the Company. When a reduction in work occurs that is temporary and will probably not exceed two weeks the Company may reduce hours to not less than 32 hours in a week, once during the calendar year instead of using the regular layoff. procedure. If, at the end of the two week period the work load did not increase as originally anticipated, layoffs will be made in accordance with seniority and regular working hours restored for the remaining work force, unless a further extension is mutually agreeable to the Company and the Union. If it is apparent from the outset that the reduction in work will not be temporary, the Company will reduce the work force in accordance with the regular layoff procedures Rehiring- When there is a need to increase the size of the working force, the reverse of the foregoing procedure shall apply. Employees laid off shall be offered employment in the order of their seniority, for work they are capable of performing after a reasonable learning period at the prevailing rates for such work. Notice of recall shall be sent to the employee's last known address by registered mail. It shall be the responsibility of the employee to promptly notify the Company and the Union of any change of address. The employee's right to recall expires after two (2) years from date of layoff Seniority Accrual- An employee on layoff may accrue seniority up to a maximum of twelve (12) months except that in no event shall he accrue more seniority on layoff than he had months of service at the time of layoff Loss of Seniority- Seniority shall be lost when any of the following occur: (a) (b) (c) (d) Voluntary termination of employment with the Company. Retirement. Discharge- Not reversed through the grievance procedure. Failure to notify the Company within six (6) standard working days of intention to return to work or failure to return to work on needed date after notice recalling the employee to work has been sent to the employee's last known address by

11 ,. registered mail. 11 ARTICLE 9 - SENIORITY (CONT'Dl (e) (f) Absenting himselffrom work for more than two (2) working days without notifying the company as to the reason for such absences or failure to comply with leave of absence rules. Layoff which exceeds two (2) years' duration If a terminated employee is subsequently rehired who had three (3) years or more of service prior to termination, the Company shall six (6) months after his date of rehire, reinstate his prior service for benefit purposes only. It is not intended that such reinstatement will affect his seniority for any other purpose Promotion and Reversion - A bargaining unit employee who has been transferred to a position not covered by this Agreement will be permitted to revert to a position covered by this Agreement. The employee shall, as from time of such reversion, pay Union dues in accordance with Article 5. The employee shall be granted seniority in accordance with 9.1. Should the reversion occur during the first forty (40) standard working days following the initial transfer date, the employee shall revert to his former job which shall have been filled on a temporary basis. Should the reversion occur after forty (40) standard working days from the date of initial transfer, the employee shall revert to the least senior position in the department he originally left. Seniority acquired outside the bargaining unit shall accumulate for bargaining unit purposes. During the forty (40) standard working days trial period the employee's job will be posted on a temporary basis. If after the forty (40) standard working days the employee in the salaried position does not revert to his previous job, the employee selected to fill the temporary vacancy will become permanent Should an employee, due to a compensable accident, become physically impaired during the course of his employment with the Company he shall displace the least senior employee assigned to a job that the impaired employee is capable of performing, provided that the impaired employee has the higher seniority. The employee displaced may bump the least senior employee in the plant by the terms of 9.6(8). ARTICLE 10 - GRIEVANCE PROCEDURE -ARBITRATION Definition- A grievance is a complaint or controversy in which it is claimed that the Company or the Union has failed to comply with an obligation assumed under the terms of this Agreement.

12 ,. 12 AR"riCLE 10- GRIEVANCE PROCEDURE- ARBITRATION (CONT'D) The Company and the Union recognize that grievances should be settled promptly and agree that each will endeavour to present all the facts relating to the grievance at the first step in the grievance procedure Any grievance which an employee or the Company has shall be taken up with an appropriate official of the other party within four (4) working days of its known occurrence or be conclusively considered waived The Union Committee person or Steward will give reasonable notice to his immediate Production Supervisor prior to leaving his place of work for the purpose of investigating a grievance. Should a Production Supervisor other than his own be involved in the grievance, he shall also report his presence in the area to that Production Supervisor Handling of Grievance - The steps in the grievance procedure shall be as follows: Step 1 Step 2 Step 3 Step 4 Any employee having a grievance under the terms of this Agreement shall first take the grievance up with the Production Supervisor involved, together with his Committee person. This meeting will take place in a suitable location away from the production area. Failing to settle such grievance, the grievance shall be reduced to writing in triplicate. The grievance shall state the nature ofthe complaint and may specify the article and section of the contract which is alleged to have been violated. It shall be signed by the employee(s) and Committee person and presented to the Production Supervisor who will, within two (2) standard working days, answer the grievance in writing and return in triplicate to the Committee person at interest. Within five (5) standard working days of the return ofthe Production Supervisor's answer, a meeting will be held between the bargaining committee, a Staff Representative, the Director, Manufacturing and Engineering, and other such Company representatives (not to exceed two in number) as he may designate. The Company or Union may bring additional witnesses to a grievance meeting if required. The Director, Manufacturing.and Engineering will provide a written answer within two (2) standard working days. Failing settlement the grievance shall be submitted to arbitration in accordance with the Ontario Labour Relations Act, including Section Any grievance not processed from one step to the next within five (5) standard working days shall be considered to be settled with the exception of Step 4

13 13 which shall have a time limit of thirty (30) calendar days which may be extended by mutual agreement in writing. ARTICLE 10- GRIEVANCE PROCEDURE- ARBITRATION (CONT'Dl The time limits set forth in 10.5 above may be extended by mutual agreement and in writing The Arbitration Board shall not have the authority to make any decision inconsistent with the provisions of this Agreement nor alter, modify, amend or add to the provisions of this Agreement Wage levels, as set forth in Appendix "A" are fixed by this contract and shall not be subject to arbitration Special Grievances - In all instances in which the Company may conclude that an employee's conduct may justify discharge, he shall 'first be suspended for a period not to exceed two (2) standard working days, at which time the Company will render its decision after thorough consideration of all relevant matters. During this period, the employee may request a hearing with the Company with appropriate Union representation The Union may file a grievance at Step two of the grievance procedure if an alleged violation of the Agreement affects more than one employee. If an arbitration board finds that the Company has violated the Agreement, it shall have the power to award compensation to all employees that it deems to be affected by the violation Grievances of a plant-wide nature shall proceed directly to Step 3 after being submitted in writing to the Director, Manufacturing and Engineering. ARTICLE 11- DISCIPLINARY ACTION No disciplinary action shall be posted to an employee's file unless the employee has been personally disciplined and a warning slip issued to him by his immediate Production Supervisor Where a warning slip is signed by an employee and/or a member of the Union Committee such signature will indicate only that he has been shown the notation. The signature shall not be construed for any other purpose. Disciplinary warnings cannot be used after the time limits outlined on the warning notation In the event that an employee is directed by supervision to appear in the office for the purpose of instituting formal disciplinary action a Union Committee person

14 will be present. 14 ARTICLE 12- HOURS OF WORK AND OVERTIME Standard Workweek- The standard workweek shall consist of forty (40) hours of five (5), eight (8) hour days. The workweek shall commence at 11:00 p.m. on Sunday and finish at 11 :00 p.m. on Friday with the exception of two shift operations which will end at 12:00 midnight Standard Shifts (a) The standard working hours for any operation which is on a three (3) shift basis shall be as follows: 1st Shift 2nd Shift 3rd Shift 11:00 PM to 7:00AM 7:00 AM to 3:00 PM 3:00 PM to 11 :00 PM 18 min. pd. lunch 18 min. pd. lunch 18 min. pd. lunch The order of rotation of shifts shall be from 3rd to 2nd to 1st except that the Company shall not be required to permit a schedule of rotation that obligates it to either daily or weekly overtime payments because of the change of shifts. (b) The standard working hours for any operation which is on a two (2) shift basis shall be as follows: 1st Shift 2nd Shift 7:00AM to 3:30 PM 3:30PM to 12:00 PM 30 min. unpd. lunch 30 min. unpd. lunch (c) The standard working hours for any operation which is on a one (1) shift basis shall be as follows: 7:00 AM to 3:30 PM - 30 min. unpaid lunch (d) Adjustment to these standard hours of work may be made by mutual agreement of the parties Changes in Working Hours - It is recognized and agreed that operational requirements in terms of production cycles may from time to time necessitate changes in shift starting and stopping times for certain employees. Such changes shall be reviewed in advance with the Union.

15 15 ARTICLE 12 - HOURS OF WORK AND OVERTIME (CONT'D) Overtime- Work performed in excess of eight (8) hours in any scheduled shift and all hours worked on Saturday as such shall be paid for at the rate of time and one half. Saturday shall be 11 :00 PM Friday to 11 :00 PM Saturday. All hours worked on Sunday as such will be paid for at the rate of double time, as will hours worked on Saturday in excess of eight (8) hours. Sunday shall be 11 :00 PM Saturday to 11 :00 PM Sunday. For the two (2) shift operations Saturday will be 12:00 midnight Friday to 12:00 midnight Saturday. Sunday will be 12:00 midnight Saturday to 12:00 midnight Sunday In the event overtime work is required, the Company will make every effort to distribute overtime work equitably. The Production Supervisors will maintain logs of overtime worked by the employees in their departments. Employees who are capable of performing the work will be asked to perform the overtime required if convenient to them. If an insufficient number of employees volunteer, overtime will be assigned to the employees who have worked the least number of overtime hours in the calendar year Preference for Overtime Work - When overtime is to be worked, due consideration will be given to the seniority of employees classified on the job requiring overtime and to distribute overtime work equitably among those employees who have the ability to perform the available work without training. Employees who have had an unauthorized absence in the current workweek shall forfeit their overtime seniority preference. As much advance notice as possible will be given to employees assigned to operations requiring overtime. Where an employee is required to work a minimum of two (2) hours of unscheduled overtime, a meal allowance of $5.00 will be paid. This allowance will be paid on the day the overtime is worked. Unscheduled overtime is defined as overtime required of which the employee was not informed on the previous day An employee who works overtime shall not be required to take time off during the week for the purpose of reducing his hours to the standard workweek Rest Periods - Employees shall be entitled to one ( 1) ten ( 1 0) minute rest period during the first half of their shift and to one (1) ten (10) minute rest period during the second half of their shift. When two (2) or more hours of overtime are worked by an employee, he shall be entitled to an additional rest period of ten (10) minutes duration.

16 16 ARTICLE 12 HOURS OF WORK AND OVERTIME (CONT'Dl Wash-up Periods- Except as otherwise provided, employees shall be entitled to one five {5) minute wash-up period immediately preceding their lunch break. Except as otherwise provided, all employees assigned to continuous process operations will wash-up immediately following the end of their shift with payment of 0.1 of an hour {6 minutes) at straight time. Employees assigned to graphite operations shall be entitled to 24 minutes washup time immediately following the end of their shift with payment of 0.4 of an hour {24 minutes) at straight time. Maintenance department employees, who get very dirty during the performance of their normal duties, exercising common sense, shall be allowed to get cleaned up before proceeding to their next assignment. Should a problem arise, it shall be subject matter for discussion at a Union/Management Meeting. The Company agrees to provide soap suitable for washing hands and face This article is intended to define the normal hours of work and shall not be construed as a guaranty of hours of work per day or per week, or for days of work per week Two employees, similarly classified, who wish to exchange shifts for a period of time, shall so advise the Company. The Company will permit the exchange provided it in no way interferes with the efficiency of plant operations. ARTICLE 13 WAGES The wage schedule governing employees subject to the terms of this Agreement shall appear as Appendix "A" and become a part thereof. The agreed upon classification of jobs covered by this Agreement shall appear as Appendix "B" and become a part thereof Whenever a new job is created, the Company and Union will meet to determine the proper labour grade. In the event the parties are unable to agree, the Company shall assign a labour grade and if the Union believes that an improper grade assignment has been made, it shall have the right to submit a grievance.

17 17 ARTICLE 13 -WAGES (CONT'D) The Union accepts the classification of jobs in effect as of the date this Agreement is executed and as set forth in Appendix "B". Should the content of such jobs change during the term of this Agreement, the Company reserves the right to make such changes in labour grade assignment as are required to maintain a realistic relationship between jobs. Such changes shall be subject to grievance by the Union but only on the basis that the degree of change therein does not warrant reclassi fication When a job is reclassified to a higher labour grade, the employee's rate will be moved to the same progression step in the new labour grade, and he will retain the same review date When a job is reclassified to a lower labour grade, the employee's rate will be maintained for a period not to exceed three (3) months Rate Changes- All rate changes will be effective the Monday following the date of review When an employee is transferred, for medical or physical reasons, to a job which is a different rate, the following will apply: If the job grade is higher, his rate of pay shall be adjusted according to the wage schedule. If the job grade is lower, his existing rate of pay shall be maintained as a "Personal Rate" for a period not to exceed one (1) month Whenever, due to lack of work an employee, in lieu of layoff is offered and accepts another temporary work assignment, the employee will be paid the rate of the new job, provided the employee shows within ten (10) standard working days the ability to meet established production standards for the job Whenever, for reasons other than lack of work, an employee is asked to perform work in a higher labour grade, he shall be paid the rate of the job to which newly assigned, provided that the period of assignment is for not less than one hour. If an employee is asked to perform work in a lower labour grade, he shall maintain the labour rate of this previous assignment as a "Personal Rate". The rate of the job in this instance is defined as the employee's present progression step as applied to the labour grade in which he is to perform his new duties Working Group Leader (a) An employee designated as a working Group Leader shall receive a base rate equal to the maximum rate of his job grade plus ten (1 0) percent. Selection of

18 18 working Group Leaders shall be within. the department and be based on seniority and qualifications. ARTICLE 13 WAGES (CONT'D) (b) (c) A working Group Leader's responsibilities shall be limited to the group to which assigned. He shall not take disciplinary action towards employees in the group nor shall he recommend disciplinary action to supervision. For just cause the Company shall have the right to remove an employee from the working Group Leader responsibility and the employee's rate will be adjusted accordingly Employees assigned to the 11:00 PM to 7:00AM shift and any extension thereof, will be paid a premium of 40 cents per hour. Employees assigned to the afternoon shift and any extension thereof will be paid a premium of 35 cents per hour Call-in-pay - When an employee is called back to work after leaving the company's premises, he shall be given a minimum of four (4) hours pay. The respective overtime pay rates provided for in Article 12, Section 12.5, shall apply depending upon hours previously worked in the same workday or workweek. In order to qualify for the minimum payment an employee shall not be required to perform any work other than his emergency assignment Reporting Pay - An employee reporting for work at his regular starting time but for whom no work is available in his regular classification will be offered a minimum of four (4) hours work, or at the option of the Company, four (4) hours pay The above provisions shall not apply when the Company has made a reasonable effort to notify employees not to report or when the conditions responsible for the curtailment of work are due to an emergency created by an Act of God, failure of power or other occurrences beyond the Company's control When a maintenance employee breaks and/or damages his personal tools during the normal performance of his assigned duties the Company will replace the tool(s) with tool(s) of equal or better quality Skill Adjustment- Expansion Joint Builder #1 will receive $0.15 per hour skill adjustment over the evaluated grade as referenced in Appendix A

19 19 ARTICLE 14- VACATIONS Any employee who is on the payroll of the Company as of June 30th of any year in which this Agreement is in effect and who has been employed by the Company for a period of not less than three (3) months, shall be entitled to one (1) week's vacation, with pay equivalent to 4% of his earnings with the company during the twelve month period ending on June 30th Any employee who is on the payroll of the company as of June 30th of any year in which this Agreement is in effect and who has been employed by the Company for a period of not less than one (1) year, shall be entitled to two (2) weeks vacation, with pay equivalent to 4% of his earnings with the Company during the twelve (12) month period ending on June 30th Any employee who is on the payroll of the Company as of June 30th of any year in which this Agreement is in effect and who has been employed by the Company for a period of not less than five (5) years, shall be entitled to three (3) weeks vacation, with pay equivalent to 6% of his earnings with the Company during the twelve (12) month period ending on June 30th Any employee who is on the payroll of the Company as of June 30th of any year in which this Agreement is in effect and who has been employed by the company for a period of not less than ten (10) years shall be entitled to four (4) weeks vacation with pay equivalent to 8% of his earnings with the Company during the twelve (12) month period ending on June 30th Any employee who is on the payroll of the Company as of June 30th of any year in which this Agreement is in effect and who has been employed by the Company for a period of not less than twenty (20) years, shall be entitled to five (5) weeks vacation, with pay equivalent to 10% of his earnings with the Cornpany during the twelve (12) month period ending on June 30th Vacation Schedule (a) (b) Vacations will betaken in the period January 1st through December 31st of each year. However, the Company reserves the right to shut down the plant during the months of July or August and to insist that earned vacations be taken during the period in which the plant is not operating. The Union will be given notice by April 1st, if possible, but no later than May 1st as to the period of plant shutdown. Vacation schedules for each year will be set up by May 1st of each year and in accordance with the following procedures:

20 20 ARTICLE 14 - VACATIONS (CONT'Dl 1) A list of employees eligible to receive vacations together with the length of vacation to which they are entitled will be circulated among employees by February 28th of each year. 2) Each eligible employee shall enter his vacation preference in the space provided on the schedule. 3) The Company will then complete the schedule by assigning vacation time to each employee listed, giving consideration to individual preference in order of seniority insofar as possible but without impairing the effectiveness of operations. (c) (d) Changes in the schedule thus completed may be made only with the approval of the Director, Manufacturing and Engineering. An employee who reaches his anniversary date after June shall be entitled to an additional week's vacation during the calendar year, with pay equivalent to two (2) percent o'f his earnings with the company during the twelve (12) month period ending on June 30th All employees will take their total vacation entitlement. In the case of employees with 4 or 5 week vacation entitlements, these employees may work one week of their entitlement in lieu of time off. Should a problem arise due to this provision, the parties will meet to try and effect a resolution. Earnings as referred to in Sections 14.1, 14.2, 14.3, 14.4, and 14.5 shall include actual wages earned, incentive bonuses, overtime payments, shift premiums, holiday pay, vacation pay, weekly indemnity payments, and Workplace Safety and Insurance Board for the previous year Vacations shall not be taken in periods of less than one (1) week Any employee who is separated from the Company for any reason or cause shall be entitled to vacation pay in accordance with his length of service with the Company. Such vacation pay shall be based on his earnings with the Company from the preceding July 1st to the date of separation Vacation pay will be paid to the employee on the regular pay day of the second full week of July. Where vacations are taken before July in the calendar year following, an advance may be requested to be delivered to the employee providing that the request is received from the employee at least ten (10)

21 21 standard working days prior to the start of vacation. ARTICLE 14 -VACATIONS (CONT'D) When an employee has been absent on Union business as approved by the Union membership and the Company, and for that reason only his vacation pay would be reduced, the vacation pay to which he is entitled shall be increased so as to offset such loss of earnings Vacation time off will be counted as hours worked for purposes of computing any overtime due during a week in which vacation is taken and work is also performed. ARTICLE 15 - HOLIDAY PAY Coverage- The holiday payment provisions specified below apply to all hourly paid employees covered by this Agreement including probationary employees Recognized Holidays- The following days are recognized as holidays: New Year's Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Christmas Day Boxing Day In addition to the above, the Company will provide three (3) floating holidays, the selection of which shall be decided by April 1st of the current year at the discretion of the Company, but following a discussion with the Union. In the event the Federal Government legislates Heritage Day as a statutory Holiday it will replace one of the Floating Holidays. When any of the above mentioned Holidays fall on Saturday, the preceding Friday will be considered a recognized Holiday. When any of the above mentioned Holidays fall on Sunday the following Monday will be considered a recognized Holiday. When Christmas Day falls on a Sunday, Boxing Day will be observed the following Tuesday unless mutually agreed.

22 , ' 22 SCHEDULE: A In consideration of the terms of 15.2 the following is the schedule of holidays {excluding Heritage Day) for the term of this Agreement. December 1, 1999\2000 Christmas Day Boxing Day Floater Floater Floater New Year's Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Friday, December 24, 1999 Monday, December 27, 1999 Tuesday,December28, 1999 Wednesday, December 29, 1999 Thursday, December 30, 1999 Friday, December 31, 1999 Friday, April 21, 2000 Monday, May 22,2000. Friday, June 30, 2000 Monday,August7,2000 Monday, September 4, 2000 Monday, October 9, 2000 December 1, 2000\2001 Christmas Day Boxing Day Floater 1 Floater 2 Floater 3 New Year's Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Monday, December 25, 2000 Tuesday,December26,2000 Wednesday, December27,2000 Thursday, December 28, 2000 Friday, December 29, 2000 Monday, January 1, 2001 Friday, April13, 2001 Monday, May 21, 2001 Monday, July 2, 2001 Monday,August6,2001 Monday, September 3, 2001 Monday, October 8, 2001

23 SCHEDULE "A" (CONT'Dl 23 December 2001/2002 Christmas Day Boxing Day Floater 1 Floater 2 Floater 3 New Year's Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Tuesday, December 25, 2001 Wednesday, December 26, 2001 Thursday, December 27,2001 Friday, December 28, 2001 Monday, December 31, 2001 Tuesday, January 1, 2002 Friday, March 29, 2002 Monday, May 20,2002 Monday, July 1, 2002 Monday, August 5, 2002 Monday, September 2, 2002 Monday, October 14, Holiday Pay- Employees covered by this Agreement will receive pay for regular hours of work which would otherwise be scheduled for the recognized holiday provided the employees were not instructed to work on the holiday. Employees who work on the holiday will be paid at the rate of double time plus the holiday pay. To receive holiday pay, however, an employee must complete his regularly assigned hours of work on the days immediately prior to and following observance of the holiday unless absent for reasons which in the discretion of the company warrant special consideration. Where an employee is denied holiday pay for reasons of absence, the Union shall be immediately notified Special Consideration - Approved leave of absence or layoff within two (2) weeks of the holiday shall be considered excusable reasons for not working scheduled hours on the days preceding and following the observance of the holiday. Tardiness shall not be considered sufficient reason for denying an employee holiday pay. In the event of an employee being on Workplace Safety and Insurance Board, the employee shall be paid the difference between his W.C.B. payment and entitled holiday pay Holiday hours paid for shall be considered as hours worked for purposes of computing any overtime due during a week in which a paid holiday is observed.

24 ARTICLE 16 - LEAVE OF ABSENCE Without Pay- A request from an employee for a leave of absence without pay will be considered on the basis of the reason for the request, his length of service, his performance record and production requirements. (a) (b) Such leave, when granted shall not exceed two (2) weeks, but may be renewed at the discretion of the Company upon written request by the employee. After three (3) months continuous leave, the employee shall hold no residual rights to his former job, but will return according to his seniority rights only. Any leave of absence granted to an employee is subject to the following conditions: 1) An employee who fails to report for work upon expiration of the leave will be considered as having voluntarily quit, unless he provides evidence satisfactory to the company for such absence. 2) An employee on leave who otherwise would have been subject to layoff during the period of leave shall be considered as having been at work for the purposes of applying both the layoff and rehiring provisions of this Agreement. 3) If the request is for reasons of health, the Company will require that the employee submit medical proof of disability before granting such leave. At the expiration of a leave for reasons of health, the employee will be required to furnish medical proof that he is able to resume his normal duties. Seniority shall only continue to accrue up to a period of eighteen (18) months. After twenty-four (24) months of continuous leave for reasons of health, the employee shall be separated from the Company's payroll. 4) If an employee is found to have accepted any kind of employment while on leave, except with the written consent of the Company, he will be considered as having voluntarily quit. (b) An employee elected or selected to perform Union duties as an employee ofthe USW will, upon written request (from the International) to the Company, be granted a leave of absence for a period not to exceed the term of this Agreement, subject to renewal. Such employee shall be given continuous service credit for the time involved. The Company shall grant leaves of absence without pay for up to fifty (50) days per year for employees to serve as delegates of the local Union for the transaction of Union business providing the granting of such leave does not interfere with the efficient operation of the plant. The Union will make its request for such leave in writing to the Company at least five (5) working days in advance unless other arrangements are mutually agreed upon.

25 . 25 ARTICLE 16- LEAVE OF ABSENCE (CONT'D) (d) (e) An employee who suffers a compensable injury while in the employ of the Company and is unable to work solely because of the injury shall be granted a leave of absence for the period of disability but not to exceed thirty (30) months. Such a person shall accrue seniority during the period of leave. Extension beyond this time limit may be granted by mutual agreement between the Company and the Union, depending upon the circumstances in a particular case. An employee who, by medical certifications issued during the period of leave, is to remain disabled so as not to be able to perform work in the plant shall be tem1inated as of the date of such medical certification. An employee on maternity or parental leave who returns to the Company within the leave period, will accrue seniority during such period of leave. If the employee does not return to full employment with the Company at the end of the leave period, the employee will be credited with the seniority accrued at the time the leave commenced, and while the Company is not obligated to do so, if subsequently rehired within one year from the date the leave commenced, the employee will have their previous seniority restored With Pay- Leave of absence with pay will be granted to employees for the reasons enumerated below. Leave of absence pay will consist of the hourly rate of pay in effect at the time of the leave for the standard workday or forty (40) hours in the standard workweek. Where a leave of absence has been granted in accordance with the following subsections and all respective conditions have been fulfilled, the time so lost will be counted as time worked in computing any overtime due. (a) An employee who suffers the death of a member of his immediate family will receive leave of absence pay for his normally scheduled days of work, not to exceed three (3), and as measured from the day of death to the day of the funeral. Members of the immediate family shall include the employee's father, mother, stepfather, stepmother, wife, husband, son, daughter, stepson, stepdaughter, brother, sister, father-in-law, mother-in-law, grandchild, grandmother, grandfather, son-in-law, daughter-in-law, brother-in-law and sister-in-law. For the purpose of this section, common law spouse as defined in Appendix C should be treated the same as husband or wife. Brother-in-law is defined as the brother of one's husband or wife or the husband of one's sister; and sister-in-law is defined as the sister of one's husband or wife or the wife of one's brother. Request for such payment shall be accompanied by a submission of proof.