MOlSON-ecoU COLLECTIVE AGREEMENT. Between. -and- MOLSON COORS BREWERY Toronto, Ontario INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 772

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1 AUG COLLECTIVE BARGAINING INFORMATION SERVICES COLLECTIVE AGREEMENT Between MOlSON-ecoU MOLSON COORS BREWERY Toronto, Ontario RECEIVED- -and- Al No '/.- \lo CERT.Al CERT.DATE TOTALEMPS EFF. DATE..13!1. 01, '!.0\\ EXP.OATE oec. ~~, 'I.0\10 I; INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 772 CODING CONTROL DATE CODER IDENTCODED ~ UNION 1.; I ELf'I.Oml I OTHER v January 1, December 31, 2016

2 ' MOLSON BREWERIES INDEX Bereavement Allowance Call-In-Pay Changes in Legislation Check-Off... 6 Duplication of Benefits Grievance Procedure Hours of Work... 8 Jury Duty Injury or Illness Leave of Absence for Union Duty Letters of Agreement Meal Allowance No Strike or Lock-Out Non-Discrimination/Non-Harassment Operating Engineers Act Overtime Pay for Performance Purpose and Values... 3 Remuneration... 7 Retiree Spousal Benefits Seniority: Definition Application of Termination of Separation Pay Sick Pay... 9 Termination Unemployment Insurance Rebate Union Shop... 6 Vacation Bonus Vacation Leave Vacation Pay Vacation Time Vacation Payments on Termination Welfare and Pension Plan Work Clothing and Safety Equipment World Class Manufacturing

3 PURPOSE AND VALUES In striving to become a "WORLD CLASS BREWERY", and providing added value for our shareholders, we the members of the Toronto Brewery, will strive for excellence in QUALITY and RELIABIL TY in order to deliver the highest degree of SERVICE to our customers; this will be achieved through the talents and commitments of our people and the use of modern processes and practices. We will establish and maintain a healthy and safe workplace that fulfills individual needs for mutual trust, personal growth, and appreciation for results. The Toronto Brewery operation will be recognized as having employees that are willing to learn, to change, and to act quickly, to maintain a leading edge position in a constantly changing and challenging GLOBAL MARKET environment. To realize our goal of becoming a "WORLD CLASS BREWERY" requires the combined efforts of Management and Union leaders, and all employees. Therefore, all employees within the Brewery will: Know, understand, respect and practice the intent of the Collective Agreement., Meaningfully participate in the decisions which affect them. Willing to do Work and assume all tasks for which they are qualified. Develop and maintain a high level of technical, administrative and relationship skills. Work toward the satisfaction of shareholders, internal and external customers needs. Promote Quality, Reliability, Efficiency, and waste reduction. Support initiative, new ideas, trust, mutual respect, equitable treatment and cooperation. Communicate information promptly, accurately and completely. Assist in training other employees. Take pride in their work and promote and adhere to the highest standards. Provide support to those employees who have difficulty adapting to change or learning new processes. Willing to do any task which they are capable of performing safely and responsibly (Flow to work concept). Both parties agree that their common objective is the desire to make the operation more RELIABLE and to enhance the JOB SECURITY of all 3

4 employees. The parties believe that these objectives can be best met through good planning and monitoring; the BM/UE (Brewery Management/Union Executives) will provide guidance to all the departments in their efforts to bring lasting changes and sustainable results. 4

5 COLLECTIVE AGREEMENT BETWEEN: MOLSON BREWERIES TORONTO, ONTARIO (hereinafter called "the Company") AND: INTERNATIONAL UNION OF OPERATING ENGINEERS contracting through its Local 772 (hereinafter called "the Union") WHEREAS the parties are desirous of concluding an Agreement with respect to the terms and conditions of employment of Operating Engineers and such other classifications of employees as are enumerated below. AND WHEREAS the parties hereto have agreed as follows: 5

6 SECTION 1 - UNION SHOP 1.01 It is agreed that all Shift Engineers and Foremen who are employed during the term of this Agreement will be and remain members of the Union. The Company further agrees that when a man is required, it will make application to the Union for such a man, but if the Union does not have a man available who is acceptable to the Company within five days, the Company may hire a man who is competent to perform the work for which a man is required, and the Union will accept such a man and allow such a man to become a member of the Union, or will issue to such a man, if he is employed temporarily during a seasonal period, a Union Permit Card. The Employer recognizes the Union as the sole collective bargaining agent for all operating engineers and persons primarily employed in the power plant save and except the chief engineer and persons above the rank of chief engineer 1.02 CHECK-OFF The Company agrees to provide for the convenience of its employees a voluntary revocable check-off arrangement which will permit the employees to have their regular dues and initiation fee deducted from their pay. The Company shall forward the amount so deducted to the Treasurer of the Local Union no later than the tenth day of the month following the date on which the dues and assessment deductions have been made, together with a list of the employees, giving particulars of those who have been terminated or who have been laid off since the previous list was forwarded. 6

7 SECTION 2 - REMUNERATION 2.01 The employees covered by this Agreement shall be paid the weekly rates indicated below: WEEKLY RATES Effective Date $ 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16 2nd Class Shit Eng $ 1,815 1,834 1,853 1,872 1,891 1,910 1,929 3rd Class Asst Shft Eng $ 1,801 1,820 1,839 1,858 1,876 1,895 1,914 2nd Class Maint Eng $ 1,815 1,834 1,853 1,872 1,891 1,910 1,929 Realiability Co-Ord $ 1,815 1,834 1,853 1,872 1,891 1,910 1,929 The above weekly rates include compensation for working regular shifts on Saturdays at time and one-half and regular shifts on Sundays at time and one-half. for working on off shifts with premiums as shown below and straight time for 11 plant holidays plus double time in addition for working up to six (6) plant holidays per year. Shift premiums shall be paid at the rate of $. 70 per hour for afternoon shifts and $ per hour for night shifts A regular weekly pay day shall be established by the Company, and the employees shall receive their pay on that day. The Company may pay by cheque, by cash, or by direct deposit to the employee's bank account. The employee shall receive a statement specifying the number of hours covered by the payment received, with particulars of deductions, and extras, if any. If the Company chooses the direct deposit option, employees will be required to provide the necessary bank account information. 7

8 2.04 In the event that an error is made by an employee in the submission of his time sheet of eight {8) hours or more equivalent pay, the Company will prepare a manual cheque for the underpayment. Should the error be less than eight (8) hours or result in an overpayment the adjustment shall be made at next pay. SECTION 3 - HOURS OF WORK The Company will continue the previous practice of scheduling the above employees on rotating shifts with the intention that employees will regularly work 40 hours per week divided into five 8 hour shifts. There shall be two break periods per shift totaling forty five (45) minutes. One break will be taken in each half shift. Break periods will be scheduled subject to operational requirements. The present practice of scheduling shifts will be continued unless other arrangements are made by mutual agreement between the Chief Engineer and the men concerned. This present practice is intended to give each employee an equitable share of the opportunities for having two consecutive days off each week as far as possible; and also an equitable share of the opportunities for having no shift scheduled on as many possible of the ten Statutory Holidays observed by the plant as a whole. These holidays are: New Year's Day, Family Day, Good Friday, Easter Monday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day, Boxing Day and any additional holidays proclaimed by the Provincial Government. Commencing in the calendar year 1978 and every year thereafter, each seniority employee shall receive one day off to be taken at a time mutually agreed upon between the Company and the employee. It is understood that this time off will be taken at a time that will not affect the operation of the Department. The day off is to be taken on a nonpremium shift (day shift- Monday through Friday). It is recognized that since the employees are on weekly rates they will be expected to work extra shifts to take the place of those who are absent due to illness or other causes. If an employee is required to work on his scheduled day oft he shall not be asked to take a day off his regular shift unless he agrees to do so. 8

9 3.06 The 12 hour day shift commences at 6:30a.m. and ends at 6:30p.m. The 12 hour night shift commences at 6:30 p.m. and ends at 6:30 a.m. The 8 hour day shift commences at 7:00 a.m. and ends at 3:00 p.m Mutually agreed shift changes between employees will be allowed provided the employee who actually works the shift will be paid and the shift change is in compliance with the Employment Standards Act (ESA) SECTION 4 - SIC I< PAY Subject to the submission of evidence satisfactory to the Company of illness or accident (including those under Worker's Compensation Act). the Company will provide a sick pay credit to each employee in each calendar year. This credit will become operative on the first day of any absence due to disability, and will be used to supplement wage indemnity payment under the Company's insurance plan or loss of earnings payments under the Worker's Compensation Act to enable an employee to receive equivalent gross earnings during any absence caused by sickness or accident for a total period of forty-five (45) working days in a calendar year. The credit will be non-cumulative and any unused portion will expire at the end of a calendar year, but a new credit will then be established as provided above and will be applicable to subsequent absences due to disability, or to any absence continuing from the previous year due to disability. It is understood that any abuse of this provision may result in discharge. 9

10 SECTION 5 - OVERTIME 5.01 An employee paid at weekly rates who works an extra shift in addition to those regularly scheduled for him will be paid for such extra time at the rate of time and one half except for the following conditions: a) Hours worked exceed 11 hours - excess hours paid at double time. b) Sunday hours and Statutory Holiday hours are to be paid at the rate of double time and one half. HOURLY RATES - TO BE REVISED BASED ON OFFER. Effective Date 2nd Class Shft Eng 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16 ~ rd Class Asst Shft Eng $ nd Class Maint Eng $ Realiability Co-Ord $ MOLSON BREWERIES INTERPRETATION OF YEAR-END ADJUSTMENT PROVISION RE: OPERATING ENGINEERS' COLLECTIVE AGREEMENT I.U.O.E LOCAL 772, TORONTO -SECTION 5 EFFECTIVE JANUARY 1, 2010 The Operating Engineer's Collective Agreement provides payment for two distinct types of overtime work. (a) The first, which may be described as the basic overtime provision, calls upon the Company to pay the rate of time and one-half of the real hourly rate for work performed on a 6th and 7th consecutive shift in a week and for hours of work in excess of 8 per shift. This type of overtime is paid for immediately in that is made part of the employee's pay for that week. 10

11 (b) The second is a special calendar year-end adjustment designed to compensate an employee for having worked on more than 31.2 Saturdays, 31.2 Sundays, and/or more than 6 plant holidays in the year. When this occurs, the employee's rate for the extra Saturdays over 31.2 is one and one-half times the real hourly rate; the extra Sundays over 31.2 is made up to twice the real hourly rate; and for the extra plant holidays over 6, the rate is made up to three times the real hourly rate. The real hourly rates that are used in the calculation of (a) and (b) above are shown in Section 5 of the Toronto Agreement. Year-End Adjustment In order to determine the amount of the adjustment required for work performed on the extra Saturdays, Sundays or holidays, it is first necessary to determine the rate of pay the employee has already received for working those days, either in the form of regular weekly salary or as weekly compensation for overtime work. The rate of pay that an employee receives on any given day can be determined by referring to the formula that was used to calculate the amount of the weekly salary. Using the true hourly rate applicable to 2nd class engineers, the following analysis shows the various components of the salary rate. i) Payment for 260 basic shifts (i.e. 5 shifts per week X 52 weeks) at straight time pay. ii) Payment for 31.2 additional shifts at half time pay to provide time and one-half payment for the average number of Saturday shifts that would be worked as part of the basic 260 shifts (i.e. 5 men covering the 156 Saturday shifts per year would each work 31.2). iii) Payment for 31.2 additional shifts at half time pay to provide time and one half time payment for the average number of Sunday shifts that would be worked as part of the basic shifts (i.e. 5 men covering, etc.). iv) Payment for 6 additional shifts at double time pay to provide a total of triple time for the average number of plant holidays that would be worked as part of the 260 basic shifts (i.e. 5 men covering the 30 holiday shifts per year would each worl< 6). 11

12 v) Payment for 5 additional shifts at straight time pay to provide straight time payment for the balance of the holidays that would not be worked (i.e. 10 holidays less 6 which are paid for at triple time). Holidays not worked are paid for at straight time in addition to pay for the regular 5 shift schedule. vi) shifts for which $.70 per hour off-shift premium is paid (i.e. the total number of.70 shifts in a 52 week period is 7 X 52 = 364. Each man's share is 1/5th of 364 or 72.8). vii) 72.8 shifts for which $1.10 per hour off-shift premium is paid. Substituting $37.84 (effective Jan.1, 2011) per hour for the straight time rate, the salary equivalent is: (I) 2,080 hours (260 shifts) X $37.84 $78, (ii) 31.2 shifts X 4 hours X $ (iii) 31.2 shifts X 4hours X $ (iv) 6 shifts X 16 hours X $ (v) 5 shifts X 8 hours X $ (vi) 72.8 shifts X 8 hours X $ (vii) 72.8 shifts X 8 hours X $ Calculated Annual Salary $94, Calculated Weekly Salary 1, Actual Weekly Salary 1, Since all shifts have to be performed as either: a) one of the employee's five regularly scheduled shifts in any given week or; b) as a shift in addition to the basic 5 shifts per week, the rate that an employee has been paid for any Saturdays or Sundays worked in excess of 31.2 per year or for any holidays worked in excess of 6 per year can, be readily established by referring to the foregoing formula. When this is established, the adjustment to the contracted rate for these excess days can be made. Such adjustments will be issued by February 28th of the following year. For example, if an employee had worked 32.2 Sundays in the year and each of these Sundays was part of the man's normal shifts, it is evident from the foregoing formula that he has already been paid for these days at the equivalent of straight 12

13 time rates as all regular work is contained in the basic 2,080 hours per year. Therefore, the year-end adjustment he would be entitled to for the one extra Sunday would be an additional 8 hours pay at straight time to bring his rate up to double time for that day. If, however, one of his 32.2 Sundays had been worked as an additional or 6th shift in a week for which he would have received time and one-half at the time it occurred, this shift becomes his 32.2th or extra Sunday and he is given a year-end adjustment of 4 hours at straight time rates to bring his rate for that day up to double time. The year-end adjustment for a Saturday worked in excess of 31.2, as part of a man's five normal shifts, requires a year-end adjustment of 4 hours to bring the rate to time and one-half. However, any Saturday that was worked as a 6th shift was immediately paid for at the rate of time and one-half so no year-end adjustment is necessary. In the case of an employee who works on more than 6 plant holidays in the year, none of which were overtime shifts, the rate he has received for the extra holidays worked, according to the formula, is straight time (see Item (iv) ). Therefore, the year-end adjustment for the holidays worked in excess of 6 is an additional double time to increase his rate for those days to triple time. On the other hand, if one of the extra holidays worked had been an overtime shift (i.e. 6th or 7th shift in a week) for which he would have already been paid double time and one-half (i.e. straight time -- see Item (iv) -- plus time and one-half for overtime), the adjustment would consist of a year-end payment of one-half time for each hour worked to increase the rate to triple time The Company will distribute overtime work equitably among those who are qualified to take over such shifts; and will distribute maintenance overtime work equitably among those who can do such work to the satisfaction of the Company. SECTION 6- CALL-IN-PAY 6.01 When a man is called in during his off time hours: (a) to replace a regular shift man who is absent, he will be paid at the rate applicable to the man whom he replaces, or at his own rate, whichever is greater, subject to any claim he may have for overtime. 13

14 {b) to perform emergency maintenance or breakdown work, and is so called in after he had left the plant at the end of his regular shift and before the one hour preceding his next regular shift, he will be paid for the time worked at the appropriate overtime rate subject to a minimum payment of four hours at such overtime rate for each emergency call in. {c) to perform emergency maintenance or breakdown work within the one hour period preceding the starting time of his regular shift, he will be paid for such extra work at the appropriate overtime rate with no minimum payment guaranteed. {d) appropriate overtime rates in clauses (b) and (c) mean time and one-half on Mondays to Saturdays inclusive, and double time and one-half on Sundays and Statutory Holidays and triple time for hours worked in excess of 8 on a Statutory Holiday. {e) any hours paid for under clauses (b) and {c) will not be used for calculating overtime adjustments in relation to daily or weekly hours worked or for year-end adjustments where applicable. SECTION 7- VACATIONS An employee continuously absent from work for a period in excess of 1 04 weeks shall not be entitled to any vacation entitlement thereafter until further entitlement is earned by resumption of active service. Near the conclusion of the vacation year, an employee with unused vacation entitlement who is then in receipt of Weekly Indemnity or Long Term Disability Benefits and who has not been continuously absent from work in excess of 1 04 weeks shall: 1. cease to receive such benefits and be placed on vacation leave until his unused vacation entitlement is exhausted; and, 2. resume receipt of disability benefits, if still qualified, once his vacation credits are exhausted. An employee whose disability benefits are interrupted as described above, shall have his eligible benefit period extended by the number of 14

15 weeks for which he has been placed on vacation leave by the Company pursuant to this clause Vacation Leave As of May 1 in each calendar year vacation leave will be established for all regular employees according to the following scale: (a) regular employees who have achieved seniority as of May 1st -- 1 week. (b) regular employees who have one year or more of seniority as of May 1st-- 2 weeks. (c) regular employees who have 3 or more years of seniority as of May 1st -- 3 weeks. (d) regular employees who have 8 or more years of seniority as of May 1st-- 4 weeks. (e) regular employees who have 15 or more years of seniority as of May 1st-- 5 weeks. (f) regular employees who have 20 or more years of seniority as of May 1st -- 6 weeks. (g) regular employees who have 25 or more years of seniority as of May 1st-- 7 weeks. The initial establishment of the fourth, fifth, sixth and seventh week of vacation will be made with reference to the employee's seniority anniversary date as though established as of May 1st Vacation Time Summer vacation shall be limited to two weeks which shall be scheduled between May 1st and September 15th. Additional vacation leave shall be scheduled during the slack periods between September 15th and April 30th. 15

16 If mutually convenient to the Union and the local management, vacations may be scheduled at other times. To exercise seniority, employees shall select vacation at least six (6) months prior to the commencement of the vacation with the Employer approving within (5) calendar days. Within the six (6) month period vacation approval shall be on a first come first serve basis Subject to Article 7.04 if there is a conflict between two or more employees with respect to allocation of vacation, the Chief Engineer shall give preference in choice of times to the most senior employee. SECTION 8- VACATION PAY For each week of vacation leave, an employee shall receive his normal weekly rate, except that with respect to the first two weeks of vacation taken after May 1st in any year, payment shall be at the rate of 4% of earnings during the 12-month period preceding May 1st if the employee has lost fifty days or more in the said 12-month period because of lay-offs or other absence not due to illness or accident. An employee who is to be paid on a percentage basis for his first two weeks of vacation may elect to remain at work and receive the 4% payment without taking any time off. Payment to be made when requested by the employee during the summer vacation. SECTION 9- VACATION BONUS In addition to the normal vacation pay provided by Section 8.01, a vacation bonus for all employees qualifying will be established on May 1st of each year when vacation leaves are established, assuming that all such vacation leaves will be paid for on the basis of wage rates then in effect. The bonus will be paid in a lump sum on the pay day prior to July 1st in each year except that any employees who take vacation subsequent to May 1st and prior to July 1st may request their vacation bonus upon one week of advance notice. 16

17 9.03 As of May 1st in each year, employees who have three (3) years or more of seniority will be paid a vacation bonus of 1 0% of their vacation leave multiplied by their real hourly rate. SECTION 10- VACATION PAYMENTS ON TERMINATION All terminations shall be handled on the following basis: (a) Employees who had received their vacations earned as of May 1st prior to termination shall receive a pro rata payment of 4%, 6%, 8%, 10%, 12% or 14% as applicable of earnings from May 1st to date of termination. (b) Employees who had not received their earned vacation as of May 1st prior to termination shall receive their regular vacation pay in addition to a pro rata payment of 4%, 6%, 8%, 10%, 12% or 14% as applicable of earnings from May 1st. (c) Temporary employees shall be entitled only to vacation pay in accordance with provisions of Part VII of the Employment Standards Act. On termination, an employee will receive any vacation bonus to which he is entitled. SECTION 11 -GRIEVANCE PROCEDURE All grievances shall be dealt with and disposed of as hereinafter provided. The Company acknowledges the right of the Union to select a Shop Steward and an alternate to assist employees in presenting complaints or grievances to the Company. The alternate Steward shall act in the absence of the regular Steward with respect to any grievance arising in the department. Step No. 1 Any employee having a grievance may present it in writing to his Chief Engineer on "employee grievance" forms to be supplied by the Union The Chief Engineer shall deal with the grievance and render his 17

18 decision in writing not later than the second regular working day next following the day upon which he received the grievance. Step No.2 Any employee not satisfied with the decision of the Chief Engineer may, within two regular working days, appeal in writing to the Personnel Manager. The Personnel Manager shall deal with the appeal and render a decision in writing not later than the third regular working day after the appeal was rendered. If the Personnel Manager's decision is not satisfactory to the Union concerned, he may within 15 days of the delivery of the decision, request in writing that the matter be referred to arbitration. Step No. 3 It is agreed that any issue to be arbitrated shall be submitted to a single arbitrator that is satisfactory to both parties. In the event agreement to an arbitrator cannot be reached, either party may apply to the Ontario Labour Management Arbitration Commission for a list of five prospective arbitrators to be forwarded to each of the parties. Upon receiving the list, the parties have up to ten working days to accept an arbitrator from the list. If the acceptable person is unable to act and agreement cannot be reached on any of the remaining names on the list, the Registrar of the Commission will name an arbitrator different from those on the list and he will be accepted by both parties The Arbitrator shall then hear the matter in dispute and shall render a decision thereon in writing as expeditiously as possible. The Arbitrator shall not have authority to alter or change any of the provisions of this Agreement, or to substitute new provisions in lieu thereof, nor to give any decision inconsistent with the terms and provisions of this Agreement, or to deal with any matter not covered by this Agreement. The decision of the Arbitrator shall be final and binding on both parties to this Agreement. The parties will jointly bear the expenses of the Arbitrator. 18

19 If there is a grievance of such a nature that it cannot appropriately be stated as the grievance of a single employee or a group of employees, but deals rather with general questions of interpretation or application of the Agreement, it may be put forward as a policy grievance by the Union, and will be discussed at the several steps indicated above and taken to arbitration if necessary. The Arbitrators powers to be in accordance with Section 37, sub-section {8) of the Labour Relations Act. SECTION 12 - NO STRII<E OR LOCI<-OUT No strike or lock-out shall occur during the life of this Agreement. If an employee in the bargaining unit encounters a bona fide picket line in the course of his normal duties there shall be an immediate conference between the parties hereto before any decision is made by either party as to whether the picket line should or should not be respected. SECTION 13 Technical Standards & Safety Authority Act {TSSA) The Company, the Union and the employees concerned agree to comply with the Technical Standards & Safety Authority Act, 2000 or as amended from time to time. SECTION 14- CHANGES IN LEGISLATION If, as the result of changes in legislation, it becomes possible to have the work presently in the bargaining unit performed by utilizing employees with lesser grades of certificates than those which are now required, then any employee whose job assignment is down-graded to a lower classification will retain the rate applicable at the date of change in classification and will not receive any increases in his personal rate until such time as the job rate for his new assignment exceeds the personal rate being paid. Present employees will not be down-graded as the result of legislative changes until December 31",

20 SECTION 15 - SENIORITY Definition of Seniority The parties hereto agree that the seniority list attached as Appendix "A" constitutes the correct seniority of the employees presently in the bargaining unit. Seniority shall be based upon total length of service with the Company (unless Section applies), provided that an employee shall be considered to be a probationer until he has worked in the bargaining unit for 90 working days When an employee has completed his probationary period as provided above, he shall be placed on the seniority list according to his most recent date of employment. A seniority list shall be revised and posted current with any change in the bargaining unit Application of Seniority When filling vacancies, the qualifications of the employees shall be given primary consideration and if there is any choice to be made between two or more employees within the bargaining unit having sufficient qualifications, the employee first obtaining the higher certificate shall receive preference. This clause shall be applicable from the time the employee joins the bargaining unit Henceforth, a 3rd Class Engineer who obtains his 2nd Class ticket and later is promoted to a 2nd class position shall be placed on the bottom of the 2nd Class seniority list, having as his new seniority date, the date of taking over his new position. His original seniority date shall be bracketed behind and shall continue to be used for all items in which total service is involved, including his right under clause

21 If any reduction of working force should become necessary, the Company agrees to make such reduction on the basis of seniority of the employees as set out on the list prepared by the Company and the Union for that purpose and which list is called the "lay-off seniority list". Recalls to work following a lay-off shall be in the reverse order of the lay-off. When an employee is laid off, he shall have the option of displacing an employee in a lower classification, providing that he has more seniority in terms of service within the bargaining unit than the employee in the lower classification. It is understood that when an employee exercises this option, he shall be paid the rate for the lower classification while he is employed in it. Termination of Seniority Seniority shall cease and employment be terminated for any of the following reasons: (a) If an employee quits; (b) If an employee is absent from work for three consecutive days without having notified tho Company and received permission to be absent in advance where that is possible; (c) If an employee has been laid off and fails to report for work within 9 days after the delivery of registered letter of written notice to report to work. The Company may recall the next employee in line, but he is subject to being displaced if the first employee recalled does report within 9 days; (d) If an employee has been discharged for just cause; (e) In case of lay-off for a period of 12 months, unless this period has been extended because the employee was granted leave of absence for sickness or other reasons. 21

22 SECTION 16- SEPARATION PAY An employee shall be eligible and may apply for separation pay within one month of the fulfillment of any of the following events: (a) the Toronto Brewery permanently discontinues its operations, directly causing the loss of his employment; (b) the reduction of horsepower or changes in legislation directly causing the loss of his employment; (c) a continuous lay-off of twelve months The amount of the separation payment of an eligible employee shall be equal to: (a) one week's base earnings (computed on the basis of his hourly rate in effect as of time of layoff) multiplied by the number of his completed years of seniority (as used for vacation entitlement) as of the last day he actively worked in the Bargaining Unit, plus (b) an additional Seven Hundred and Fifty Dollars ($750.00) multiplied by his completed years of seniority used in (a) above to a maximum of 15 years. If there is a permanent closure of a brewery the 15 year maximum is replaced with a 22 year maximum An employee shall be excluded from separation pay eligibility if: (a) he quits (b) he is terminated for just cause; (c) he is terminated under Section 10 of this Collective Agreement; (d) he has been terminated because of specific direction or decree from any Government authority which has the effect of curtailing any of the Company's operations; unless 22

23 {i) the direction or decree is the result of an illegal act committed by the Company or one of its representatives, or {ii) the direction or decree purports to change the method of beer retailing within the Province; (e) he has been laid off because of any act of war or the hostile act of any foreign power or by any act of sabotage or insurrection or by any act of God; {f) he is laid off and has arranged with the Company to take leave of absence without pay for a specific period in lieu of his layoff; {g) he is in receipt of income replacement benefits under the Weekly Indemnity or Long Term Disability Plans or the Worker's Compensation Act. {h) he is entitled to receive any pension under the Company or Government Pension Plan If any employee applies for and receives a separation payment, his seniority and other rights under the Collective Agreement are immediately canceled. SECTION 17- WORK CLOTHING AND SAFETY EQUIPMENT The Company agrees to supply Engineers with a clothing issue which will consist of: 2 pairs of pants annually 2 shirts annually 2 caps annually 2 "T" shirts annually 1 Winter Coat every 2 years and the Company shall make provision for the laundering of one set of work clothing consisting of one shirt and one pair of pants per employee per week. 23

24 The Company will supply Engineers with heat resistant gloves or other appropriate types of gloves as required. A lump sum of $150 will be paid by February 1 on an annual basis to all regular employees not issued rubber boots as their footwear. SECTION 18- LEAVE OF ABSENCE FOR UNION DUTY The Company agrees to grant leave of absence for a period of not more than 24 months, or for the balance of the duration of this Agreement, whichever is the longer, to any employee who has been elected or appointed as an official of the International Union or of the Local Union, if such duties require him to have leave of absence from his Company duties on a full time basis. Employees on such leave of absence may be continued as active members of the pension and welfare plan upon payment of the total contributions, whether from the Union or from the employee concerned. During such periods of leave of absence, the employee's seniority shall continue to accumulate as if he were employed at his regular post by the Company. SECTION 19- BEREAVEMENT ALLOWANCE Should a bereavement occur in an employee's immediate family (members of his household, parents, brothers or sisters, mother-in-law or father-in-law), he may request a bereavement leave and he shall be granted such time off with pay as is reasonable under the circumstances to enable him to look after funeral arrangements or to attend the funeral. The extent of such leave shall be to the discretion of the Company, depending upon the time of the bereavement in relation to his regular time off, the distance to be traveled, etc. The general standard of bereavement time off shall be three consecutive days Providing prior permission is received, in the event an employee attends the funeral of a brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent or grandchild on a regular scheduled work day, time off with pay shall be granted. 24

25 19.03 When an employee is granted time off during his regular scheduled shift to act as a pall-bearer for a deceased fellow-employee or pensioner of the Company, he shall be paid at his rate of pay for any lost time incurred up to four (4) hours. SECTION 20 - JURY DUTY Should an employee be called for jury duty, or Crown Subpoenaed Witness, the Company will supplement his jury pay or witness pay, to ensure that the employee will receive equivalent gross earnings for the time spent as a juryman or witness. SECTION 21 - INJURY OR ILLNESS Sickness or disability resulting from an accident shall not be sufficient cause for discharge. Upon recovery, the employee shall receive his former position or some other suitable job in his department if held by an employee with less seniority, if the recovered employee is capable of performing the job in a satisfactory manner, and provided he was not absent because of sickness or injury for more than 24 months. SECTION 22 - MEAL ALLOWANCE Employees will be granted $10.00 meal allowance for each half shift of overtime worked either before or after a regular shift has been worked. SECTION 23- DUPLICATION OF BENEFITS An employee shall not receive wages or other allowances such as holiday pay, vacation pay, weekly indemnity, LTD, Worker's Compensation, or similar benefits from more than one source for the same day or part day. 25

26 SECTION 24 - UNEMPLOYMENT INSURANCE REBATE The employee's share of any Unemployment Insurance Premium Rebate will be retained by the Company to offset a portion of the cost of the benefit improvements contained in this Agreement. SECTION 25 -NON-DISCRIMINATION/NON-HARASSMENT The Company and the Union agree that there will be no discrimination or harassment practiced which is contrary to the Ontario Human Rights Code (O.H.R.C.). SECTION 26- TERMINATION This Agreement shall be effective from January 1, 2010, until and including the 31st day of December, 2016 and shall continue thereafter from year to year unless either party gives to the other notice of termination or desire to negotiate a new contract. Such notice may be given during the statutory period prescribed by the Labour Relations Act if any, and if not, during the month of November in each year. If requested, negotiations with respect to any suggested amendments shall take place within ten days of such written request or as otherwise agreed to. 26

27 IN WITNESS WHEREOF the parties hereto have hereunto set their hands and seals: ' Local772 International Union of Operating Engineers Molson Breweries Toronto, Ontario 27

28 Addendum: For permanent employee hired after January 1, 2010 all provisions of the agreement will apply with the exception of the following: Section 2- Remuneration WEEKLY RATES EFFECTIVE DATE: 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15 2nd Class Shft Eng $ 1,976 $ 1,997 $ 2,017 $ 2,038 $ 2,058 $ 2,079 $ 3rd Class AsstShftEng $ $ 1,981 $ 2,002 $ 2,028 $ 2,048 $ 2,069 $ 2nd Class Maint Eng $ $ 1,997 $ 2,017 $ 2,038 $ 2,058 $ 2,079 $ Reliability Co-Ord $ $ 1,997 $ 2,017 $ 2,038 $ 2,058 $ 2,079 $ 1-Jan-16 2, ,100 2,100 WEEKLY VACATION RATES EFFECTIVE DATE: 1-Jan-10 1-J-an-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15 2nd Class ShftEng $ 1,882 $ 1,902 $ 1,921 $ 1,941 $ 1,960 $ 1,980 $ 3rd Class Asst Shft Eng $ 1,867 $ 1,887 $ 1,907 $ 1,931 $ 1,950 $ 1,970 $ 2nd Class Maint Eng $ 1,882 $ 1,902 $ 1,921 $ 1,941 $ 1,960 $ 1,980 $ Reliability Co-Ord $ $ 1,902 $ 1,921 $ 1,941 $ 1,960 $ 1,980 $ 1-Jan-16 2,000 1,990 2,000 2,000 Shift premiums shall bepaid at the rate of $.60 per hour for each worked hour. Sec 3.01 The Company will schedule the above employees on rotating shifts with the intention that employees will work 84 hours per 2 week period divided into 7-12 hour shifts. There shall be two break periods per shift totaling 60 minutes. One break will be taken in each half shift. Break periods will be scheduled subject to operational requirements. Section 4 - Sick Pay Employees hired after January 1, 2010 will be eligible for a maximum of six ( 6) days or 7 2 hours pay 28

29 Section 5 - Overtime 2nd Class Shft Eng, Effective Date 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16 3rd Class Asst Shft Eng $ , nd Class Maint Eng $ , Rea!iability Co-Ord $ MOLSON BREWERIES INTERPRETATION OF YEAR-END ADJUSTMENT PROVISION RE: OPERATING ENGINEERS' COLLECTIVE AGREEMENT l.u.o.e LOCAL 772, TORONTO -SECTION 5 EFFECTIVE JANUARY 1, 1998 The Operating Engineer's Collective Agreement provides payment for two distinct types of overtime work. {a) The first, which may be described as the basic overtime provision, calls upon the Company to pay the rate of time and one-half of the real hourly rate for work performed on a 6th and 7th consecutive shift in a week and for hours of work in excess of 12 per shift. This type of overtime is paid for immediately in that is made part of the employee's pay for that week. {b) The second is a special calendar year-end adjustment designed to compensate an employee for having worked on more than 26 Saturdays, 26 Sundays, and/or more than 6 plant holidays in the year. When this occurs, the employee's rate for the extra Saturdays over 26 is one and one-half times the real hourly rate; the extra Sundays over 26 is made up to twice the real hourly rate; and for the extra plant holidays over 6, the rate is made up to three times the real hourly rate. The real hourly rates that are used in the calculation of (a) and {b) above are shown in Section 5 above. 29

30 Year-End Adjustment In order to determine the amount of the adjustment required for work performed on the extra Saturdays, Sundays or holidays, it is first necessary to determine the rate of pay the employee has already received for working those days, either in the form of regular weekly salary or as weekly compensation for overtime work. The rate of pay that an employee receives on any given day can be determined by referring to the formula that was used to calculate the amount of the weekly salary. Using the true hourly rate applicable to 2nd class engineers, the following analysis shows the various components of the salary rate. t) Payment for 182 basic shifts {i.e. 7 shifts per 2 week period X 26 weeks) at straight time pay. n) Payment for 26 additional shifts at half time pay to provide time and onehalf payment for the average number of Saturday shifts that would be worked as part of the basic 182 shifts. m) Payment for 26 additional shifts at half time pay to provide time and one half time payment for the average number of Sunday shifts that would be worked as part of the basic shifts. tm) Payment for 6 additional shifts at double time pay to provide a total of triple time for the average number of plant holidays that would be worked as part of the 182 basic shifts. m) Payment for 5 additional shifts at straight time pay to provide straight time payment for the balance of the holidays that would not be worked. Holidays not worked are paid for at straight time in addition to pay for the regular 5 shift schedule. mt) All 182 basic shifts will be paid a shift premium of $0.60 per hour. 30

31 Subs titutlng $37.84 (effective Date of RAT) per hour far the s tr aig ht time rate, the salary equivalent is: II) 2,184hours (18212hourshifts)X$37.84 $ 82, (ii) 26shlfts X6hours X$37.84 $ 5, (Iii I 26shifts X6haurs X$37.84 $ 5, (iv) Bshifts X24hours X$37.84 $ 5, (v) 5shifts XBhours X$37.84 $ 1, (vi) 182shifts X12hours X$.60 $ 1, Calculated Annual Salary $ 102, Calculated Weekly Salary $ 1, Actual Weekly Salary $ Since all shifts have to be performed as either: a) one of the employee's seven regularly scheduled shifts in a two week period. b) as a shift in addition to the basic 7 shifts per 2 week period, the rate that an employee has been paid for any Saturdays or Sundays worked in excess of 26 per year or for any holidays worked in excess of 6 per year can be readily established by referring to the foregoing formula. When this is established, the adjustment to the contracted rate for these excess days can be made. Such adjustments will be issued by February 28th of the following year. For example, if an employee had worked 27 Sundays in the year and each of these Sundays was part of the man's normal shifts, it is evident from the foregoing formula that he has already been paid for these days at the appropriate rates. Therefore, the year-end adjustment he would be entitled to for the one extra Sunday would be an additional 12 hours pay at straight time to bring his rate up to double time for that day. If, however, one of his 27 Sundays had been worked as an additional or 8'" shift in a 2 week period for which he would have received double time and one half at the time it occurred,-therefore no adjustment is required. The year-end adjustment for a Saturday worked in excess of 26, as part of a man's seven normal shifts, requires a year-end adjustment of 6 hours to bring the rate to time and one-half. However, any Saturday that was worked as an 8'" shift was 31

32 immediately paid for at the rate of time and one-half so no year-end adjustment is necessary. In the case of an employee who works on more than 6 plant holidays in the year, none of which were overtime shifts, the rate he has received for the extra holidays worked, according to the formula, is straight time (see Item (iv) ). Therefore, the year-end adjustment for the holidays worked in excess of 6 is an additional double time to increase his rate for those days to triple time. On the other hand, if one of the extra holidays worked had been an overtime shift (i.e. 6th or 7th shift in a week) for which he would have already been paid double time and one-half (i.e. straight time --see Item (iv) -- plus time and one-half for overtime). the adjustment would consist of a year-end payment of one-half time for each hour worked to increase the rate to triple time. Section 7 -Vacation Time --Employees hired after January 1, 2010 will be eligible for a maximum of six weeks of vacation Section 8 - Vacation Pay For each week of vacation leave, an employee shall receive the weekly vacation salary rate, except that with respect to the first two weeks of vacation taken after May 1 '' in any year, payment shall be at the rate of 4% of earnings during the 12 -month period preceding May 1 if the employee has lost fifty days or more in the said 12-month period because of lay-offs or other absence not due to illness or accident. Section 9 -Vacation Bonus Employees hired after January 1, 2010 will not be eligible for vacation bonus. 32

33 Section 12 - Benefits Employees hired after January 1, will enter the Company Flexible Benefit Program after successful completion of their probationary period. For all regular employees effective date of ratification the following provisions apply All regular employees as of January 1'', 2011 will receive a onetime $1,000 learning bonus to be paid January 1'' In addition, all regular employees as of January 1'', 2011 will receive a one-time lump sum signing bonus of $3,500. Employees will be offered a retirement incentive package of $30,000 to be taken during the life of this collective agreement. There will be 6 packages available. Effective date of ratification, employees must declare their intention to take the package within 30 days of having attained or when they reach either 90 points or age 65. Employees who elect to take these packages will leave at the end of the second month following their declaration. The third class grievance will be withdrawn. For current day shift maintenance employees they will be grandfathered on their current shift schedule until they terminate from the company. Their replacements will follow the new shift schedule rotation. 33

34 WELFARE AND PENSION PLAN MOLSON BREWERIES TORONTO, ONTARIO Covered by a Collective Agreement with: LOCAL 772 Toronto I.U.O.E. 1. ACTIVE EMPLOYEES ( 1) Life Insurance Effective January 1, 2010, $95, payable to the employee's named beneficiary on death of the employee, for employees actively at work on that day. Employees not actively at work on the above named days shall only be provided increased insurance coverage upon their return to active employment. (2) Accidental Death and Dismemberment Insurance Effective January 1, 2010, $95, payable to the employee's named beneficiary on death of the employee resulting from a non-occupational accident or $95, payable for double dismemberment or $47, for single dismemberment occurring to the employee as a result of a non-occupational accident, for employees actively at work on that day. Employees not actively at work on the above named days shall only be provided increased insurance coverage upon their return to active employment. (3) Ontario Health Insurance Plan The Company will pay the premium cost that would normally be payable by the employee for himself and his eligible dependents. 34

35 (4) Major Medical Major Medical benefits with a maximum of $25, will be provided with a deductible in each calendar year as shown in the table below except that the deductible will not be applicable to hospital charges arising from excess cost of semi-private accommodation over ward accommodation. The expense benefit provisions of the Major Medical Plan will provide an annual reinstatement of up to $ at the beginning of each calendar year. if required, to restore the maximum to the level of $25, Deductible Effective January 1, 2000 Effective January 1, 2001 Effective January 1, 2002 Effective January 1, 2003 Effective January 1, 2004 Effective January 1, 2005 Single $15 $20 $25 $30 $35 $40 Family $25 $30 $35 $40 $45 $50 Weekly Indemnity The Company will provide a plan which will pay a weekly amount equal to 70% of the employee's real hourly rate X 40 for a maximum of 26 weeks for each unrelated disability, for absences resulting from illness or accident not compensable under the Workers' Compensation Act and subject to submission of evidence satisfactory to the Company. and/or the insurer. Payment will commence on the first day of disability in the case of accident and the fourth day in the case of illness, except that an employee who qualifies for weekly indemnity and is absent from work on account of sickness for eight calendar days will then be paid for the initial waiting period at a rate of one-seventh of his appropriate weekly indemnity rate for each day of such waiting period. Any increase in the hourly rate during the 26 week period will automatically increase the weekly indemnity. 35