COLLECTIVE LABOUR AGREEMENT BETWEEN. Kitchener, Ontario AND

Transcription

1 COLLECTIVE LABOUR AGREEMENT BETWEEN Kitchener, Ontario AND UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL on Behalf of its Local 838 April l, 2011 to March 31, 2015

2 Plasti-Fab Ltd. Kitchener, Ontario AND UNITED STEEL, PAPER AND FORESTRY, RUBBER MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION. On Behalf of its Local838 Collective Labour Agreement... 6 Page Letters Of Understanding Pension Benefit Plan... 49

3 INDEX COLLECTIVE AGREEMENT ARTICLE I PURPOSE 6 ARTICLE II RECOGNITION 6 ARTICLE III MANAGEMENT 6 ARTICLE IV UNION SECURITY & 7 DEDUCTION OF DUES ARTICLE V UNION REPRESENTATIONS 9 ARTICLE VI GRIEVANCE PROCEDURE 10 ARTICLE VII HOURS OF WORK & OVERTIME 12 ARTICLE VIII PUBLIC HOLIDAYS 15 ARTICLE IX WAGE POLICY 17 ARTICLE X SENIORITY 21 ARTICLE XI VACATION 28 ARTICLE XII GENERAL 31 ARTICLE XIII DURATION OF AGREEMENT 33 APPENDIX "A" JOB TITLES & HOURLY RATES 35 APPENDIX "B" COST OF LIVING 36 LETTERS OF UNDERSTANDING 37 Page

4 COLLECTIVE AGREEMENT TOPICAL INDEX Section Page Address Change Call Back Pay Clean-Up... 7.l 0 13 Discharge I Suspension Clause Funeral Pay Grievance Holidays, Public Holidays, Qualifications for Hours of Work, Normal Factory Injury Pay Job Security Jury Duty Layoff Procedure, Indefinite LayoffProcedure, Temporary Lead Hand Duties Leave of Absence, Illness Leave of Absence, Maternity Leave of Absence, Union Loaned Employee Management Function Meal Allowance Overtime, Banked Overtime, Regular Overtime, Saturday or Sunday Overtime, Scheduling I I 14 Overtime, Coverage for Vacation Pay Day... I Payment, Meetings at Company Request Payment, Negotiating Committee Payment, Work on Holidays Probationary Period... I Recall Reprimands Rest Periods Rest Periods-Overtime Safety Apparel I 3I Safety Committee... I Shift Premium Short Work Assistance Program Transfer Pay... 9.II 19 Transfer Rights... I 0. I

5 Topical Index (cont.) Section Page Union Deductions Union Postings Union Representatives, Passes Vacancy Postings Vacation, Minimum Payment Vacation, Scheduling Vacation, Terminating Employees Wages, Starting Wages, Reporting for Work Work, Bargaining Unit... l

6 This Collective Labour Agreement made and entered into this l st day of April, 2011 by and between Plasti-Fab Ltd, Kitchener, Ontario, hereinafter called the "Company" and the United Steelworkers, on behalf of its Local #838 thereof, hereinafter, referred to as the "Union" I The Union recognizes that the operating of the plant and the full direction of the working forces is the exclusive function and responsibility of the Company without restricting the generality of the foregoing. ARTICLE Ill MANAGEMENT 2.02 Wherever the masculine gender appears in this Agreement, it shall be construed as meaning male or female, unless the context in the Section requires otherwise The Company recognizes the Union as the exclusive bargaining agent for all employees of the "Company" at its plants located in the cities of KITCHENER and WATERLOO save and except Supervisors, persons above the rank of Supervisors, office and sales staff. The company further agrees the United Steelworkers will be the sole and exclusive collective bargaining agent if Plasti-Fab relocates the Kitchener location within the Waterloo region, consisting of the Townships of Wellesly, Woolwich, Wilmot, North Dumfries and the cities of Waterloo, Kitchener and Cambridge. ARTICLE II RECOGNITION The Employer shall, promptly upon request of the Union and in any event within a month of the Union's request, provide the Union with two electronic versions of this agreement. The versions will be provided in "read only" Word and PDF fonnats. The PDF file will be a searchable file and will include a completed signature page. The Company and the Union agree to observe the provisions of the Ontario Human Rights Code The Company and the Union will not discriminate against any employee because of race, sex, creed, religion, colour, national origin, physical handicap or political affiliation nor will they condone any fonn of harassment It is the mutual desire of the "Company" and the "Union" to promote co-operation and hannony between the Company and its employees, and the Union, and to provide an amicable method of settling differences which might arise hereunder. ARTICLE I PURPOSE COLLECTIVE LABOUR AGREEMENT

7 (a) The Union recognizes the right of the Company to operate and manage the number and location of its plants, the products to be manufactured, the scheduling of its production and its methods, processes, means of manufacturing, kinds and location of machines, tools to be used, the engineering and designs of its products and control of materials and parts to be incorporated in the products produced. (b) The Union further recognizes the right of the Company to hire, retire, promote, determine qualifications and capabilities, transfer, demote and lay off employees and to suspend, discharge or otherwise discipline employees for just cause, maintain order, discipline and efficiency and to determine and establish standards of performance for all machines, employees and operations, in accordance with the terms of this agreement The Union recognizes that the Company has the right to establish and/or alter reasonable rules and regulations which are to be observed by employees. The Company will notify the Unit Chairperson of any change, addition or deletion to such list. Such Rules and Regulations shall not be inconsistent with this Agreement Reprimand notations placed on an employee's record by the Company must be signed by the immediate supervisor and by the employee as having been read. If the employee refuses to sign, the Union Steward will sign on the employee's behalf. When the supervisor calls an employee with the intent of giving such employee a reprimand, he must give the employee the opportunity of having his Union Representative in attendance, if the employee so desires. When an employee wishes to question or dispute such reprimand, he must invoke the grievance procedure within ten (10) normal working days, and if the employee's grievance succeeds, such reprimand will be revoked. Verbal and written reprimands, if no further discipline of a similar nature is issued within six (6) months, will be disregarded in the administration of discipline. Suspensions, if no further discipline of a similar nature is issued within twelve (12) months, will be disregarded in the administration of discipline. The Company will forward a copy of notations to the Union Nothing in this Agreement shall be deemed to restrict the management in any way in the performance of all functions of management except those specifically abridged or modified by this Agreement The Company agrees that it will not exercise its management rights for the purpose of restricting or limiting the rights of its employees herein granted. ARTICLE IV UNION SECURITY AND DEDUCTION OF UNION DUES 4.01 The Company and the Union agree that, as a condition of continued employment, all employees shall become and remain members of the Union. The Company and the Union agree that as a condition of continued employment, all employees 7

8 hired after the date of this Agreement, shall become members of the Union. The Company shall deduct Union dues including, where applicable, tmttat10n fees and assessments, on a biweekly basis, from the wages of each employee covered by this agreement. The amount of dues shall be calculated in accordance with the Union's Constitution. All dues, initiation fees and assessments shall be remitted to the Union forthwith and in any event no later than fifteen (15) days following the last day of the month in which the remittance was deducted. The remittance shall be sent to the International Secretary Treasurer of the United Steelworkers, AFL-CIO-CLC, P.O. Box Postal Station "A", Toronto Ontario M5W I V7 A copy of the Dues Remittance Form R-115 will also be sent to the Union office designated for the area. The remittance and the form R-115 shall be accompanied by a statement containing the following information: (a) A list of names of all employees from whom dues were deducted and the amount of dues deducted. (b) A list of the names of all employees from whom no deductions have been made and reasons. (c) This information shall be sent to both the Union addresses identified in the above Article in such form as shall be directed by the Union to the Company. The Union shall indemnify and save the Company harmless against all claims or other forms of liability that may arise out of any actions taken by the Company in compliance with this article. The Company, when preparing T-4 slips for the employees, will enter that amount of the Union dues paid by the employee during the previous year Any employee who is hired as a new employee into the bargaining unit after the effective date of this Agreement shall become a member of the Union on the date of employment or transfer and shall continue to be a member of the Union as a condition of employment An employee in the Union on or after the effective date of this Agreement shall continue to be a member of the Union as a condition of employment to the extent of paying membership dues The Company agrees to deduct from the wages of any employees who are members of the Union and who shall, as a condition of employment, certify in writing on forms supplied by the union that they authorize such deduction; of their bi-weekly Union dues in accordance with the International Constitution of the United Steelworkers and remit said deduction to the International Secretary-Treasurer of the Union. 8

9 4.05 (a) The Company shall forward the deduction as provided for in this article prior to the fifteenth (15th) day of the following month to the International Secretary-Treasurer of the Union as directed by the Union accompanied by the following information: (I) from whose pay deductions have been made. (2) from whose pay no deductions have been made, and the reason those deductions have not been made. (3) a properly filled out check-off certificate form supplied by the Union. (b) The Company shall also forward to Local 838 of U.S.W. a copy of the above information along with a properly filled out Membership Application form supplied by the Union It is the responsibility of the Union to notify the Comgany from time to time of changes in the amount of Union dues not later than the twenty-fifth (25 ) of the calendar month immediately preceding the month that such changed amount is to become effective The Union shall indemnify and save the Company harmless from any claims, suits, judgements, attachments and from any other form of liability as a result of the Company making any deductions in accordance with the foregoing authorization and assignments and the Union will refund direct to all employees on whom a wrongful deduction was made Both parties agree that there will be no discrimination, coercion, or intimidation of employees in respect to Union membership or authorization of Union deduction The Company agrees to permit the Local Unit Chair, Union Steward(s) and Union Negotiating Committee to enter plants after hours for the purpose of transacting business arising out of this Agreement. Prior to entering the plant the above mentioned union officials will sign in the log book provided by the employer. The Supervisor in the area will be contacted on entry and where applicable will be notified prior to entry as to who the designated person is All notices of meetings and other matters of interest to the employees that the Union desires to be posted shall be submitted to the Company for approval. After approval, the Company will return the notices to the Union for posting. ARTICLE V UNION REPRESENTATIONS 5.0 I The Company acknowledges the right of the Union to appoint or otherwise select a reasonable number of stewards to assist employees in presenting their grievances to the representatives of the Company. 9

10 5.02 There shall be one Unit Grievor for the bargaining unit and other stewards only as necessary. All stewards shall have completed their probationary period The Company further acknowledges the right of the Union to appoint or select from the Bargaining Unit a Negotiating Committee to consist of the Unit Chairperson and two (2) employees from the Bargaining Unit who have completed their probationary period (exceptions: where the President is from the Bargaining Unit, they will also be included). The Company will negotiate with such committee for renewals or extensions of agreements. A Staff Representative of the U.S.W. will participate in such negotiations if requested to do so by the Union The Company will pay the Negotiating Committee for time lost from their normal hours at every other meeting scheduled for negotiating agreements between the Company and Union, but not including conciliation. Upon prior approval of the Manufacturing Manager, or designate in their absence, the Company will pay the Unit Chairperson and/or the Unit Grievor of the Local Union for time spent investigating grievances and/or problems. The rate of pay shall be at the individual's regular hourly rate Union stewards, members of the Negotiating Committee (excepting International U.S.W. representation) as heretofore specified and any other employees requested by the Company to attend a meeting other than specified in Section 5.04 herewith shall be compensated for time so spent at his regular hourly rate The Company agrees to continue the pay of any employee absent from work on Union business which is not paid for by the Company as provided for elsewhere in the Agreement, and the Union shall reimburse the Company for such wage payment upon receipt of a monthly invoice. ARTICLE VI GRIEVANCE PROCEDURE 6.0 l When a supervisor has a complaint/concern he/she shall discuss the issue with employee involved. Every effort will be made to resolve the complaint promptly. If the complaint/concern cannot be settled it may result in discipline. When an employee has a complaint he shall discuss the same with his immediate Supervisor, either directly or accompanied by his Steward. Every effort will be made by both parties to resolve the complaint as promptly as possible. If the complaint cannot be settled it may be treated as a grievance and processed through the following sequences: Step 1 Failing resolution/settlement above, the issue shall be treated as a grievance and be reduced to writing, dated and presented to the Manufacturing Manager within ten (10) days of the Company's response to the grievance. A meeting will then be arranged within three (3) normal working days subsequent to such request. The Unit Grievor, or designate and/or the Steward, the Plant Superintendent and the Manufacturing Manager, and/or his 10

11 authorized representative(s) will take up the grievance. The Manufacturing Manager will render a decision in writing within three (3) normal working days after the conclusion of meeting(s) at this step. Failure for either party to miss the time limits under these provisions will render the grievance allowed or withdrawn, dependant on who violates the time limits. Step 2 Failing settlement, the grievance may be taken up by the Negotiating Committee within ten (I 0) normal working days subsequent to the date of the Manufacturing Manager's written decision, with the Management Committee. The authorized member of the Management Committee will render the decision of such committee in writing within three (3) normal working days after the conclusion of the meeting(s) on said grievance. A Staff Representative may attend at the request of the Union. Step 3 Any grievance arising from the interpretation, application, administration, or alleged violation of this agreement, which has not been settled under the Grievance Procedure, including any question as to whether a matter is arbitrary may within but not more than thirty-five (35) calendar days after the completion of Step No. 2 be submitted to arbitration by either party. Within five (5) working days of receipt of this notice, each party shall submit to the other party the name of the preferred arbitrator and if unable to agree on an arbitrator, than they may apply to the M.O.L. under the relevant provisions and legislation for an appointment of an arbitrator. All time limits in Article VI may be extended by mutual agreement in writing, signed by both parties. A. In all cases of arbitration, a single arbitrator will be substituted for a Board of Arbitration provided for in this Article VI unless the Union and the Company mutually agree to proceed by means of a Board of Arbitration. B. In all cases of substitution of a single arbitrator for a Board of Arbitration, as outlined in subsection (A) above, all other applicable provisions of Article VI will continue to apply so far as they are relevant Each of the parties shall pay the charges and expenses of its appointee. The charges and expenses of the arbitrator shall be borne equally by the Company and the Union A decision of the arbitrator shall be final and binding upon both parties and the employees The arbitrator shall not be authorized to make any decision inconsistent with the provision of this Agreement or to alter, modify or amend any part thereof. Unless mutually agreed, no matter may be submitted to arbitration which has not been properly carried through all previous steps of the Grievance Procedure During the arbitration procedure, the parties shall, upon request, have the assistance of employee and employees concerned and/or necessary witnesses. The Union will give the Company at least two (2) working days prior notice to the day of requirement of any employee(s) called by them. Also if shorter times are required it will be left open to discussion. All reasonable 11

12 arrangements will be made to provide access to the plant by an arbitrator, if and when requested, to view disputed operations and confer with necessary witnesses No grievance, after it has been submitted to the Negotiating Committee, shall be settled except through such committee The decision whether or not to discharge an employee will not be made until at least two (2) full working days have elapsed from the date of infraction, during which time thorough consideration will be given to all the facts and circumstances relevant to the matter. If an employee feels he has been unjustly suspended, discharged, improperly laid off or not recalled in accordance with the Collective Agreement, it will be subject to the grievance procedure, as outlined under this article. If such grievance is properly made, the matter will proceed through the Grievance Procedure commencing with Step# 2 and if it is determined that the employee has been unjustly suspended, discharged, improperly laid off, or not recalled in accordance with the Collective Agreement, he shall be reinstated to his former position without loss of seniority, and shall be compensated at his regular hourly rate for all hours lost from work, including the Welfare Benefit Plan, because of the suspension, discharge, improper lay-off or recall. It is further agreed that the conferring parties, by mutual agreement of the arbitrator, shall have the power to make any other arrangement which in their opinion is just and equitable, in the application of the foregoing penalties The Union agrees there shall be no strike, sit down, slowdown, nor stoppage of work, either partial or complete, during the term of this Agreement. The Company also agrees there shall be no lockout during such term. ARTICLE VII HOURS OF WORK AND OVERTIME 7.01 The normal work week for employees in the bargaining unit shall be scheduled from II :00 PM Sunday to 11 :00 PM Friday and generally on the following normal basis: Three (3) Shifts: 11:00 p.m. Sunday to 11 :00 p.m. Friday Two (2) Shifts: 7:00a.m. Monday to 11:00 p.m. Friday One (I) Shift: 7:00a.m. Monday to 3:00p.m. Friday It is understood there may be times and exceptions whereby it may be necessary to schedule shifts at other than on the above basis. Prior to any shift changes the Unit Chairperson or a member of the negotiating committee will be notified at least forty-eight (48) hours in advance notice, unless due to extenuating circumstances, beyond the control of the Company, the Union shall be notified as to the reason why The assigning of preferred shifts shall be offered on a seniority basis (except in the case of probationary or employees on lay off from their seniority position). 12

13 7.03 Hours worked in excess of eight (8) hours in a twenty-four (24) hour period or in excess of a normal week as theretofore expressed, shall be compensated at the rate of time and one half times the regular hourly rate. It is understood that in the computation of hours worked over-time on a weekly basis shall include hours paid for, but not worked. EXCEPTIONS: (a) When the hours of an employee exceed his normal daily hours, because he substituted for another employee other than at the Company's request, changed his hours at his own request, or made a regular shift change, with the prior approval of his supervisor. (b) Overtime will not be paid twice for the same hours worked or paid for Hours worked from It :00 p.m. Friday to It :00 p.m. Saturday, shall be compensated at the rate of time and one half times the regular hourly rate. Hours worked from 11 :00 p.m. Saturday to II :00 p.m. Sunday shall be compensated at the rate of double times the regular hourly rate Notwithstanding the provisions of Section 7.04 herewith, when it is necessary to schedule a job to more than one (I) shift per day, employees assigned to such job on a shift that commences prior to 11:00 P.M. Sunday and/or commences prior to II :00 P.M. Friday and/or continues or starts into the hours of a paid holiday, provided such hours do not exceed the normal weekly hours, shall not be compensated at the overtime rate An employee who works overtime shall not be required to take time off during the week to bring his hours down to normal hours per week The Union recognizes that it is the function ofthe Company to schedule hours of work, in accordance with the terms of this agreement and the employee's obligation to work the hours scheduled, provided the hours scheduled do not violate the Employment Standards Act of Ontario and Regulations there under The Company will pay employees: (a) One (1) ten-minute rest period for jobs that are scheduled on a continuous eight (8) hour basis. (b) Notwithstanding the above, the Company will grant, by mutual agreement between the Union and the Company, additional rest periods during excessive heat situations The Company will pay employees a twenty (20) minute lunch period for those shifts which are scheduled on a continuous eight (8) hour basis. Lunch periods for jobs that are scheduled on a non-continuous basis will receive an unpaid lunch period of not less than one half-hour An employee required to work overtime of at least two (2) hours or more in excess of his normal shift, shall be paid a ten (10) minute rest period for each two (2) such hours scheduled. Such rest periods shall be taken as directed by the Company. l3

14 7.I I The Company agrees to keep overtime scheduling to a mmtmum, but if overtime is necessary it shall be offered on the basis of seniority to the employees who normally perform the job and have qualified experience. The Union agrees that employees shall co-operate in performing necessary overtime. The Company agrees to consider an employee's desires and personal commitments when requesting overtime work. It is understood and agreed that any valid claim regarding distribution shall result only in an employee's entitlement to the next opportunity to work scheduled overtime. Failing this, the grievance procedure will apply. The Company will compensate for lost overtime hours under the following conditions: ( 1) The Company has been notified of the error prior to the overtime being worked and has failed to correct the error. (2) Notification shall involve the immediate Supervisor, Unit Chairperson and the following member of management- Manufacturing Manager. When overtime is essential and unavoidable and not enough employees among those in the Plant who have qualifying experience agree to work overtime beyond the normal hours per day or week, then the Company may oblige employees to work. In such a case the Company may schedule and will begin with the least senior, those employees with the least amount of overtime, who normally perform the job, to do the work, to a maximum of four (4) hours per day and eight (8) hours per week. The Company will give the employee(s) as much notice as possible and be as flexible as possible in considering an employee's personal commitments. Overtime for production employees between 11:00 p.m. Friday and 11:00 p.m. Sunday during July and August will be scheduled on a voluntary basis. Except in cases of emergency, when weekend work is required, the Company will post such request by two (2) p.m. of the Thursday immediately preceding such weekend requirement. For voluntary overtime, notwithstanding July and August, only employees who have signed the overtime posting will be considered. This does not restrict the Company's right to oblige. The Saturday shift will start at 7:00 am whenever there is an afternoon shift employee scheduled to work to avoid any employee working more than twelve hours in a 24-hour period. It is understood that the union and management will automatically reapply for Ministry of Labour approval for "excess weekly hours of work", as set out in Letter of Understanding #5 throughout the term of this contract All time cards and production records required by the Company are to be completed during working hours. 14

15 7.13 Employees may bank overtime hours. Actual hours worked in excess of eight (8) hours per day or forty (40) hours per week (Sunday to Saturday) can be banked at the rate of one and one half (1.5) times or two (2.0) times the actual number of overtime hours worked. The applicable premium shall be applied in accordance with paragraph (a) The maximum number of banked hours cannot exceed one hundred twenty (120) hours (eg four (4) worked OT one and one half (1.5) times = six (6) banked hours) (b) Employees wishing to bank their overtime hours shall mark their time cards accordingly. (c) Employees shall request to take banked hours in increments of one full shift eight (8 hours) at the current regular rate of pay. (d) Employees shall sign a requisition form when they wish to draw down their accumulated banked hours. Any banked hours not taken as time off work shall be paid at the employee's current regular rate of pay. (e) All banked hours shall be used within six (6) months following the end of the pay period in which the banked hours are earned. (f) The Company will maintain a record of banked hours for each employee and will be recorded on each employee's bi-weekly statement of earnings and deductions Overtime Coverage for Vacation In the event overtime is required, the person who is assigned to fill in as a vacation replacement shall have first opportunity to perform the overtime work. In the event that the said employee declines the request to work the overtime, the company shall ask the next senior qualified employee to perform the work. ARTICLE VIII PUBLIC HOLIDAYS 8.01 An employee who qualifies will be paid for normal daily hours at his regular hourly rate for the following nine (9) public holidays: New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, Boxing Day, plus Civic Holiday and two (2) floating holidays in each year of the Collective Labour Agreement. The two (2) floating holidays above will be selected by mutual agreement between the Local Union and the Company. If an additional public holiday is proclaimed, one of the floating holidays will be used for the public holiday proclaimed. 15

16 8.02 In order to qualify for the paid holidays specified in Section 8.01 herewith an employee must meet all of the following rules unless otherwise provided herein: (1) The employee must report for work at the starting time of his shift, and be prepared to work the normal scheduled hours of his shift, on both the last scheduled normal work day preceding and the first scheduled nonnal work day following the paid holiday. (2) The employee has completed eighty (80) working days of employment as of the day such holiday is observed in order to qualify for the two (2) floater holiday listed above. Floating holidays may be requested by employees throughout the year (from July 1st to June 30 1 h). In the event that the plant is in operation between Christmas and New Year's, employees who have used their two (2) floating holidays will be expected to work, if work is available. If work is not available, vacation days (to a maximum of three days) from the next year may be pulled forward at the employee's request. NOTE: Student Employees, as outlined in Letter of Understanding #4 do not qualify for Floater Holidays. EXCEPTIONS: An employee who is absent on one or both of the qualifying days, and the reason he was absent was because: (a) He was late in reporting for work due to a reason beyond his control and acceptable to the Company. (b) He is confined to a hospital or at home due to sickness or injury and such to be verified by medical evidence if required by the Company. This exception is limited to four (4) public holidays falling within the thirty day period from the date of the first qualifying day, during same confinement case and provided the employee is not entitled to payment under Workplace Safety and Insurance Board or Short Term Disability benefits under the Welfare Benefit Plan for such public holiday pay. If an employee is on sick leave and being paid Short Term Disability benefits for the public holiday(s), including Civic Holiday, or floating holidays in this subsection, upon return to work such employee will be reimbursed the difference between what the employee was paid as sick benefits and what the employee would be paid for such public holiday pay. (c) He has an approved leave of absence from the Company for any reason which will not be unreasonably withheld. (d) An employee with seniority and otherwise qualified for public holidays, who is laid off commencing with December 10 through January 2 inclusive, will be paid for any public holidays that are observed during this period When one of the public holidays falls during the vacation period of an employee, otherwise eligible for such holiday, he will be paid for the public holiday. The qualifying days as provided 16

17 in Section 8.02 herewith shall be the last scheduled workday preceding and following his vacation leave. The Company may observe the public holiday either the work day immediately preceding or following the employee's vacation When any of the plants suspend operations, the employee who is laid off for a definite period, not exceeding Twenty-two (22) Normal Working Days, because of such suspension shall upon recall be paid for the public holiday provided he otherwise qualifies under the terms of Section When a public holiday, specified in Section 8.01 herewith, falls on a Sunday, it shall be observed on the Monday immediately following. When a public holiday falls on a Saturday it shall be observed on the immediately preceding Friday. This may be changed by mutual agreement Notwithstanding anything to the contrary, employees who have been requested to work on a public holiday and have accepted such holiday assignment and then fail to report for and perform such work without reasonable cause shall not be paid for such public holiday An employee who works on a public holiday, or Civic Holiday, shall be compensated at the rate of two times his regular hourly rate for all hours worked in addition to any public and Civic holidays pay he is entitled to under the preceding sections of this Article. ARTICLE IX WAGE POLICY 9.01 Appendix "A" and "B" herewith attached is part of this Agreement and contains the "Job Classifications" - "Job Descriptions" and their respective hourly rate ceilings and "Cost of Living Allowance (C.O.L.A.)". The hourly rate ceilings therein shall remain in effect for the life of this Agreement and are not subject to change except by mutual agreement The term "regular hourly rate" as used in this Agreement shall mean current hourly rate of the employee excluding any shift premium and/or any other premiums paid for work The starting rate for all job classification shall be one (I) dollar per hour below the ceiling rate. There shall be an automatic progression of fifty (50) cents per hour effective the first Monday following three hundred sixty (360) regularly scheduled work hours of employment, an additional fifty (50) cents per hour increase effective the first Monday following the completion of seven hundred twenty (720) regularly scheduled hours of employment The increases specified in Sections 9.03, 9.11 and 9.12 are expressed as minimums and an employee may be increased up to the ceiling rate prior to the completion of the seven hundred twenty (720) regularly scheduled hours. 17

18 REPORTING FOR WORK: 9.05 When an employee reports for work at his scheduled shift time, without being notified to the contrary, or reports for work at a time requested by his supervisor, and is assigned no work, or works for a lesser period than four (4) hours, because of some reason within the Company's control, payment will be made for a minimum of four (4) hours at the employee's regular hourly rate. It is understood that reporting for work means the employee has punched in, and is at his work station ready for work at his scheduled starting time (exception: an employee notified by the Company within two (2) hours of his starting time shall not be required to punch in). An employee shall be considered to have been properly notified if such notification is made by the Company no later than two (2) hours before his scheduled starting time. Reporting for work will not be paid: (a) When the opportunity to work on other jobs is refused without good reason. (b) When an employee has been absent from work for personal reasons and not covered by a leave of absence prior to reporting for work. (c) When an employee fails to record with the Company a current telephone number and therefore (d) the Company is unable to notify him not to report to work. (e) In cases of stoppages of work caused by labour disturbances. (f) In cases caused by mechanical or electrical breakdowns, catastrophe, fire, or any other cause beyond the Company's control. FUNERAL PAY 9.06 An employee who has completed Twenty-two (22) working days and who is excused from work by the Company to make arrangements and/or attend the funeral of their spouse, commonlaw spouse, child, parent/guardian, brother, sister, grandparents, and great grandparents, parent of their current spouse, son-in-law, daughter-in-law, brother-in-law, sister-in-law, and grandparents of their current spouse shall be compensated at his regular hourly rate for time so lost by him during his normal hours, for three (3) days, including but not beyond the day after the day of the funeral. EXCEPTION: If the employee is eligible for any other form of remuneration to which the Company contributes, payment shall not be made under this Section for such day(s). JURY DUTY: 9.07 A seniority employee who is summoned by applicable law and reports for jury duty or as a subpoenaed crown witness shall be paid by the Company an amount equal to the difference between the daily jury duty fee paid by the court (not including travel allowances or reimbursement of expenses) and the wages earned by the employee from the Company by working l8

19 normal hours on that date. The employee will be paid for each day on which he reports for or performs jury duty and on which he otherwise has been scheduled to work for the Company during the normal workweek. Payment for such service shall be made at the employee's regular hourly rate provided: (a) the employee notifies the Company within twenty-four (24) hours after receipt of notice of selection. (b) the employee furnishes the Company with a written statement, signed by the appropriate public official, which shall contain the date, time served and amount paid. (d) the employee reports for work if a reasonable amount of time can be worked either before or after such service An employee called back to work in an emergency at any time prior to one (1) hour before his normal starting time, will be paid as follows: (a) If he is not required to remain in the plant one half hour before and beyond his normal starting time, he will be provided with a minimum of four (4) hours at his regular hourly rate, and at time and one half for such hours worked. (b) If he is scheduled to remain in the plant beyond his normal starting time, he will be paid at the rate of time and one half (1.5) times regular rate for hours worked prior to his normal starting time. It is understood that Section 7.03 (b) is also applicable. EXCEPTION: Minimum call-in pay for boiler service and water treatment is two (2) hours. FACTORY INJURY PAY: 9.09 An employee who is injured at work and who is required to obtain treatment at the factory location and/or who is required to obtain treatment at another medical location shall be paid his regular hourly rate for such time lost from the shift during which the accident occurred. EXPERIMENTAL AND INVENTORY PAY: 9.10 An employee shall be paid his regular hourly rate for experimental and inventory work. TRANSFER PAY: 9.11 An employee transferred to another job because of such reasons as: application for transfer, seniority displacement, or no work available on his job, shall be paid at the rate of ten (1 0) cents per hour less than the ceiling rate of the job to which he is transferred. Exception: If such employee is transferred to a job of a lower ceiling rate and he has "qualified experience" on such job, he will be paid the ceiling rate. After twenty (20) days working on a job other than the "exception" he shall be paid the ceiling rate. 19

20 9.12 An employee who is temporarily transferred from his regular job to another, and there is work available on his job shall be paid his regular hourly rate, or the rate in accordance with Section 9.11, whichever is the higher. SHIFT PREMIUM: 9.13 The Company will pay a shift premium of thirty-five cents ($0.35) per hour for hours worked on the shift that is normally scheduled from 3:00p.m. - 11:00 p.m. and forty cents ($0.40) per hour for hours worked on the shift that is normally scheduled from 11 :00 p.m. to 7:00a.m An employee who is scheduled to work overtime for at least four ( 4) hours following his normal shift and who had not been notified prior to the beginning of the shift, shall be paid a meal allowance of Ten Dollars ($1 0.00) prior to working the overtime, if an authorized management designate is available and if there is sufficient funds available in petty cash. Otherwise, allowance will be paid as soon as possible. SHORT WORK ASSISTANCE PAYMENT 9.15 An employee with one year or more seniority shall be eligible for Short Work Assistance Payment (S.W.A.P.) under the following conditions: (a) An employee was laid offfor a minimum of four (4) hours to a maximum of sixteen (16) hours per normal workweek. (b) The employee laid off in excess of five (5) consecutive days will not be eligible for S.W.A.P. Short Work Assistance Payment is not applicable for Semi-Annual and Annual Inventory, Acts of God, or planned or scheduled shutdowns. Short Work Assistance Payment is applicable for work shortages created by customer scheduling, machine or equipment breakdown, or material shortages. Employees shall make an application on forms available from the Plant Office. A Copy of the application will be provided to the Union. Payments will be made on approval of the Manufacturing Manager and in accordance with this Section. S.W.A.P. Payment will be 60% of the employee's regular hourly rate for all such hours lost through lay-off to a maximum often dollars ($10.00) per hour. PAYMENT OR DENIAL OF PAYMENT: Payment to an employee will be made in the pay period following the pay period during which the application was made. Applications must be in the hands of the Manufacturing Manager no later than seven (7) calendar days following the Short Workweek applied. 20

21 ARTICLE X SENIORITY An employee shall be regarded as a "probationary employee" until he shall have completed seven hundred twenty (720) regularly scheduled work hours and during such period shall have no seniority rights. Upon completion of such period from initial employment, he shall be classed as a "Seniority Employee", and his seniority shall be from the first day of initial employment. All time worked plus approved leave of absence, or lay-off shall be cumulative over a twelve (12) month period. The treatment of "Student Employees" for seniority purposes are handled under Letter of Understanding #4. The employee's performance will be reviewed at their three hundred twenty (320), four hundred eighty (480) and seven hundred twenty (720) regularly scheduled work hours and made available to the Unit Chairperson of the Union. I 0.02 Each employee in order to benefit by the seniority provision of this Agreement must keep the Company informed of his current address and the telephone number where he can be contacted as follows: (a) An employee on the active payroll will notify the Personnel Office within seven (7) normal working days by signing the form available. Such forms will be made in triplicate. One (1) copy will be retained by the employee. Failure to notify the Personnel Office without good reason for such failure may result in the employee forfeiting his seniority rights. (b) An employee on lay off, and subject to recall, will notify the Company by mail, , telephone, fax or in person An employee shall have job seniority when he completes forty (40) working days on the job on which he was hired, or to which he was transferred at which time his Company seniority shall be deemed to be his job seniority When an employee has job seniority and is transferred he shall continue to accumulate job seniority on such job until he acquires job seniority on a job to which he was transferred (a) "Qualified experience" shall mean the employee can qualify within a reasonable training period at management's discretion. (b) "Capable" shall mean the employee is mentally and physically qualified to perform the job For the purpose of Seniority, jobs have been grouped into the following: A, B and C and are listed and attached as Appendix "A". Seniority shall be recognized if it becomes necessary to layoff employees. The affected employees will first bump a less seniority employee within the job classification. If there is not a less senior employee within the classification, then the employees will bump a less senior employee within the group. If there is not a less senior employee in the 21

22 group, then he will bump a less senior employee on a plant wide basis. This bumping will be subject to the definitions and restrictions provided in a) and b). If it becomes necessary to layoff, probationary employees will be laid off first and employees on loan will be returned from where they were loaned An employee on lay-off, and who has recall rights shall be recalled to vacancies by the application of the reverse procedure as set forth herewith in Section l Wherever possible shift preference will be given according to seniority A seniority employee at date of lay-off will have the seniority he had at time of lay-off provided he is recalled within his period of recall rights and in addition shall be credited with time on lay-off up to twelve (12) months A seniority employee who has: (a) less than three (3 years, at date of lay-off shall have recall rights for twelve (12) months from date of lay-off. (b) Three (3) or more, but less than five (5) years of seniority at date of lay-off shall have recall rights for twenty-four (24) months from date of lay-off. (c) Five (5) or more years of seniority at date of lay-off shall have recall rights for five (5) years from date of lay-off. I 0.10 An employee to retain his recall rights in Section I 0.09 herewith must register with the Company, by sending a registered letter to the Company, during his first thirteenth (13th) month of lay-off and thereafter during the thirty (30) days following each annual anniversary date from his lay-off indicating his desire to retain his recall rights An employee who at time of lay-off, and who qualified in accordance with Section I 0.09 and herewith, must present himself for work within two (2) working days from the date of recall. However, if such employee is employed at time of recall such two (2) working days shall be extended to seven (7) calendar days. Failing to so report shall cancel all seniority. However, should he report within thirty (30) days of date of recall with a reasonable reason, acceptable to the Company, for not reporting, his seniority shall be retained and he will be notified of the next vacancy under the terms of this ARTICLE Notwithstanding the provision of this ARTICLE, the Company may place employees under the following conditions: (a) where two (2) or more employees have identical seniority and are entitled to the same job, the person hired first by date and time will be deemed to have preference. (b) where an employee is fully qualified to perform an operation for which no other employee 22

23 can qualify (c) where for the purpose of rehabilitation, an injured employee, shall be accommodated in accordance with their restrictions, and in accordance with the Human Rights Code.. In either case, the injured employee shall not displace an employee with more seniority. (d) where an employee cannot perform satisfactory work due to age, health, or other physical or mental conditions such employee shall be accommodated in accordance with their restrictions within functional abilities evaluation (FAE) limitations, and in accordance with the Human Rights Code. However, the employee so transferred shall not displace an employee with more seniority. (e) the cost and decision for an FAE will be borne by the company (a) For the handling of an employee presently in, or who has been in, what is now the bargaining unit, who transfers to a supervisory position or any salary position outside the bargaining unit directly connected with the operation of the plant: If he returns to the bargaining unit, he shall return to the position he had prior to transfer provided he has not been on the salary payroll longer than one (1) year, that he not displace an employee with more seniority, and that the employee only return to the bargaining unit on one (1) occasion. Failing placement, he may be placed in another job providing he is capable and has more seniority than the employee he may displace. Time spent on supervisory or other position, up to one (1) year, shall be credited to the job he held prior to promotion or transfer. Following one (1) year on the salary payroll, the employee will be deemed to have no seniority within the bargaining unit. (b) For the handling of employees who are members of the bargaining unit and who accept temporary assignment to supervisory duties: Employees who are temporarily loaned to supervisory duties not to exceed six (6) weeks: These employees will be paid per the terms and conditions of this Collective Labour Agreement. Upon completion of the assignment, the employee will be returned to the job he held prior to the assignment. Employees who accept an assignment of supervisor for a period of up to twelve (12) consecutive months: These employees will be paid rates and work scheduled hours as determined by the Company. 23

24 Upon completion of the assignment, the employee will be returned to the job which he held prior to the assignment. It is agreed that any employee who changes jobs as a result of the assignment will be infonned that such change is on a loan basis and that at the end of the assignment he will return to the job he held prior to the assignment. During these loan periods, the employee will continue to accrue seniority under this Labour Agreement. It is understood that the lengths of assignments specified above may be extended by mutual agreement between Company and Union. l 0.14 When a temporary condition arises requiring the temporary lay-off of an employee for a period not to exceed five (5) working days the seniority provision of this Agreement may not apply. Such temporary lay-offs may take place only when a specific job or group is affected temporarily due to machinery breakdown, customer scheduling, or any other causes beyond the control of the Company. When a temporary condition affects part of a job classification, probationary employees in such classification will be laid off before seniority employees are affected. The lay-off will be by seniority within the plant, group and shift where the temporary condition exists, providing the employees remaining can satisfactorily perfonn all the functions necessary to operate the plant. The foregoing "five (5) working days" may be extended by mutual agreement ln the interest of the Company, employees may be loaned from one job to another for a period not to exceed four (4) consecutive weeks. Such time may be extended by mutual agreement. If an employee is transferred to such job while on loan, his transfer date shall be that of the first day of loan. Employees who are placed temporarily on jobs for rehabilitation purposes shall be classified as "loaned employees". The Union will be notified of such loan and the purpose of it The Company will review the list of lay-off of seniority employees with the Union in order to avoid any error When it becomes necessary to lay-off an employee he will be given seven (7) calendar days prior notice of the date of his lay-off whenever possible. An employee desiring to leave shall likewise give notice whenever possible Where a new job is established or a vacancy occurs in a job classification after the job posting provisions, the Company before hiring a new employee, shall recall qualified employees on lay-off who have recall rights When a seniority employee wishes to transfer from his job to another job in the bargaining unit he shall make written application to the Company. If the transfer is for a job outside his 24

25 department the employee must specify the department to which he wishes to transfer. transfer is for a job within the department the employee must specify a particular job. If the An employee shall not have more than two (2) applications pending. In the event of a permanent vacancy, the employee with the most seniority on the list of applicants, providing he is capable of performing the job will be offered the vacancy. After acceptance and working on such job should the employee desire to return to the job from which he was transferred, he must make such request before the expiration of thirty (30) days on the new job. The Company shall have the right to delay such request for a period of thirty (30) days. The Company shall also have the right to transfer an employee who is unsatisfactory back to the job from which he was transferred during the first thirty (30) days of his transfer. (1) When a permanent vacancy occurs, the original vacancy will be posted (which shall include shift and the specific job that is vacant,) in the plant for five (5) working days excluding Saturday and Sunday, or a holiday, before being filled. Only written applications made by employees prior to the end of the posting period will be considered. Providing no employee has recall rights, the employee with the most seniority who is "capable" will be offered the job. (2) All subsequent vacancies created by the filling of a job in accordance with the foregoing: (a) Shall not require posting. (b) The Company will offer the senior applicant the vacant job. (3) Should there be no application(s) on file, or in response to the posting, the Company will offer the senior qualified employee the first opportunity to accept, the vacant position. (4) An employee transferred under this Section, including he who is transferred back within the foregoing thirty (30) day period shall have no further rights under this section for one year from the date of such transfer. EXCEPTION: An employee who cannot remain on the job to which he was transferred, because he is displaced by an employee who transferred back within the foregoing thirty (30) day period. Or if there is a job posting that no senior employee had applied for, then the individual shall have a right to such vacancy, prior to the hiring of a new employee. Temporary/seasonal positions will be posted in accordance with this Article and will be for a period of up to six (6) months. The Union and Management may, by mutual agreement elect to continue such position past the six (6) month period Any of the provisions of lay-off, recall and/or vacancy procedures may be superseded by mutual agreement between the Company and the Negotiating Committee of the Union. 25

26 10.21 The Company may grant a leave of absence to employees, except for illness or injury of the employee. Such leave must be in writing, and the employee must have written approval before taking such. The duration of the leave will be based on the following: (a) (b) (c) SENIORITY Less than two (2) years seniority Two (2) years less than five (5) years Five (5) years and over DURATION OF LEAVE 15 Calendar Days 4 Weeks 3 Months Leaves of absences shall be granted for illness or injury of an employee provided he makes application to the Company for such. It is further understood and agreed that the Emergency Leave under the Employment Standards Act is over and above any and all provisions covered under the terms of this Collective Agreement A Pregnant employee is entitled to pregnancy leave if she was hired at least thirteen (13) weeks before her expected due date. An employee who is entitled to the pregnancy leave must give her employer at least two (2) week's written notice before beginning such leave and provide a certificate from a medical practitioner estimating the date of delivery. An employee who has given notice to begin a pregnancy leave may change to an earlier date by giving at least two (2) week's written notice before the earlier date. She may change to a later date by giving at least two (2) week's written notice before the leave was to begin. Pregnancy leave is available for up to seventeen (17) weeks, fifteen (15) weeks payable by Employment Insurance (E.I.), for the natural mother of the child. An employee who is entitled to parental leave must provide written notice. This may be given at the same time as notice given for pregnancy leave, if she chooses, or must be given at least two (2) weeks before the pregnancy leave ends. The notice letter must include the starting date for parental leave. Parental leave is available for up to thirty-five (35) weeks, payable by E.I., after taking a pregnancy leave for the natural mother of the child. The parental leave of a natural mother must ordinarily begin immediately following the expiration of the pregnancy leave, or a maximum of thirty-seven (37) weeks (if no pregnancy leave was taken), thirty-five weeks payable by E.I., for either parent of either a natural or an adopted child. If you are a father or adopting parent, parental leave must commence within fifty-two (52) weeks of the date of the child's birth or coming into custody, care or control of the parent. Parental leave ends either thirty-seven (37) weeks after commencement or thirty-five (35) weeks after commencement (if following a pregnancy leave). Sickness Leave is available for up to fifteen (15) weeks, payable by E.l. E.l. requires a medical certification for this leave. 26

27 Seniority shall accumulate during such leaves, provided the leave does not exceed twelve (12) months and providing the leave is not for sickness or illness, and if so, Article is applicable. The employee continues to participate in each type of benefit plan provided by the Company, and all required contributions will continue to be made. Upon return from pregnancy or parental leave, the employee will be reinstated to a position with similar duties and pay as the position held at the commencement of the leave. It is recommended that the employee give the employer four (4) week's written notice of the estimated return to work date. If the employee provides a return to work date and they want to change the date that was scheduled to either an earlier or later date they must give the employer a new written notice at least four (4) week's before the new date. If no date is provided the employer assumes the full pregnancy and parental leave of fifty-two (52) weeks will be taken A seniority employee who is elected or appointed to serve as a representative of his local union, and/or the International Union, C.L.C. or Ontario Federation of Labour, shall upon written request be granted a leave of absence without pay, up to a period of one (1) year. An extension of such leave may be granted on a yearly basis. The Company shall retain the right to refuse such leaves, if more than two (2) employees are appointed or elected to serve as representatives. A seniority employee who is elected or appointed to a municipal office or committee in the Cities of Kitchener or Waterloo or Regional Municipality of Waterloo, shall be permitted time off, without pay, to attend meetings or conventions pertaining to such office. The Company shall reserve the right to refuse such leave if more than one (l) employees require a leave at the same time. I 0.25 A seniority employee who is a properly designated representative of the Local Union shall upon request to the Company be permitted time off without pay for the investigating or handling of grievances, attending to local Union business or attending a convention. Union to meet with management to avoid production conflicts prior to commitment An employee who has been off on a leave of absence in excess of fifteen ( 15) days, shall if requested by the Company, present a certificate from his doctor, or submit to a FAE (as per (e)) stating his fitness to return to work. I 0.27 Seniority shall accumulate during a period of an approved leave of absence provided such accumulation does not exceed six (6) months during any one period of leave of absence, including extension. EXCEPTION: Employees granted leaves of absence for sickness, accident or injury (which includes W.S.I.B.) An employee granted leave of absence to serve as a representative of his local union, and/or the International Union, C.L.C. or Ontario Federation of Labour, shall be permitted thirty-six (36) months in place of the foregoing six (6) months. 27

28 10.28 A person shall lose all seniority and shall be deemed to have terminated employment with the Company if he: An employee who has one or more years of seniority as of June 30th of the current calendar year shall be granted a vacation the duration of which shall be based upon his seniority and a percentage ofthe employee's wages received by him from the Company from July 1st of the preceding year to June 30th of the current calendar year. The time and payment shall be based on the following: "Wages Received" includes such items as Vacation Pay, Paid Public Holiday Pay, Overtime, Shift Premium, etc. Employees may be allowed the opportunity to request specific vacation day(s), giving due consideration to production, seniority and related situations. ARTICLE XI VACATION l 0.32 The Company agrees to furnish the Unit Chairperson of Local #838 with seniority lists based on the employee's records, which shall contain the current seniority date of each seniority employee in the bargaining unit. This updated seniority list shall be supplied and posted every six (6) months in the plant. In addition to the above, the Company hereby agrees to provide the Steelworkers Cambridge Office, upon request with an employee list, which shall include address and phone numbers. l 0.31 The President and Unit Chairperson of Local #838 will be assigned to the normal day shift operation, so long as the employee retains such office and so long as each employee is from a different company within the Local All applications for leave of absence for a longer period than fifteen ( 15) days must be in writing and the reply by the Company must be in writing, except that if the employee is unable to make written application and has a valid reason for not making such, in which case the Company will grant such leave. I 0.29 An employee who returns from a leave of absence shall be reinstated in his former position or a position in accordance with his seniority provided he has been medically cleared to do the work. (a) Voluntarily quits the employ of the Company. (b) Is discharged for just cause and is not reinstated. (c) Is absent due to lay-off beyond the period of his recall rights. (d) Fails to report for work in accordance with Section herewith. For WSIB cases, upon notification by the employer, employees may be requested to contact the Manufacturing Manager on a regular basis.

29 SENIORITY as of July of the Current Year Less than I year 1 year but less than 5 years 5 years but less than 10 years I 0 years but less than 20 years 20 years or more Vacation 2 calendar weeks 3 calendar weeks 4 calendar weeks 5 calendar weeks Payment 4% 4% 6% 8% IO% An employee who reaches his 5th, 10th, or 20th anniversary date after June 30th but prior to December 24th of the current year will be granted his 3rd, 4th or 5th week of vacation between his anniversary date and January 31st of the year following. All vacation for the current calendar year is to be used by March 31st of the year following. Personnel requesting payment in advance for vacation pay shall make their request no less than three (3) weeks prior to the requested date. Failure to do so will result in no payment forward When the Company follows its policy of closing down for vacation, and provided the employee is not scheduled to work during the shutdown, the employee will take his vacation at this time, and he shall be paid his vacation payment immediately prior to his scheduled vacation A definite period of vacation must be scheduled by the Company giving due consideration to production requirements, seniority, and related situations. Vacation requests for the current year that are handed into the Plant Office prior to March 31st will be scheduled on the basis of seniority. Answers to vacation requests after March 31st will be made within five (5) working days, as long as requests are submitted two (2) weeks prior to requested day off. Vacation requests handed in after March 31st will be scheduled on a "first come first serve" basis. No vacation time or payment will be authorized except as defined in this ARTICLE Vacation pay may not be made to an employee who is absent from work by reason of sickness, injury or leave of absence. If vacation payment is not made and if upon the employee's return to work: (a) The Company is unable to schedule his vacation prior to December 1st of the current calendar year or (b) The employee is unable to return to work prior to December 1st of the current calendar year the Company will pay him the vacation payment he is entitled to herewith An employee whose employment is terminated for any reason, including being laid off with recall rights, shall be paid a vacation on the following basis: (a) Where termination occurs prior to July 1st, but subsequent to January 1st of the current calendar year, and the employee has not had his vacation payment for such vacation 29

30 year he shall be paid a percentage of his wages as specified in Section herewith from July 1st to the previous calendar year to his termination date as follows: Less than 1 year 4% 1 year but less than 5 years 4% 5 years but less than I 0 years 6% 10 years but less than 20 years 8% 20 years or more IO% (b) When termination occurs subsequent to June 30th of the current calendar year, but prior to January 1st of the next following calendar year, and the employee has not had his vacation payment entitlement for the current vacation year he shall be paid any unpaid vacation due him, and in addition he shall be paid a percentage of his wages as specified in Section herewith from July lst of the present calendar year to his termination date as follow: Less than 1 year 4% 1 year but less than 5 years 4% 5 years but less than 1 0 years 6% 1 0 years but less than 20 years 8% 20 years or more 1 0% (c) When termination occurs subsequent to June 30th of the current year, but prior to January 1st of the next following calendar year, and the employee has had his vacation payment entitlement for the current calendar year, he shalt be paid in addition a percentage of his wages as specified in Section herewith from July 1st of the present calendar year to his termination date as follows: Less than 1 year 4% 1 year but less than 5 years 4% 5 years but less than 1 0 years 6% 1 0 years but less than 20 years 8% 20 years or more 1 0% An employee who is laid off prior to July 1st of the current calendar year, but subsequent to January 1 51 of such year, and who is rehired or recalled prior to July I st of the current calendar year shall be paid his vacation pay entitlement in accordance with section less any vacation pay received in accordance with Section subsection (a) herewith An employee who is laid off subsequent to July 1st of the current calendar year and who is rehired or recalled prior to June 30th of the next following year, shall have the amount of vacation payment received by him in accordance with Section subsection (b) or (c) herewith from July 1st to his termination date subtracted from vacation payment receivable in the next following calendar year. 30

31 11.08 Where an employee has been unable to work during the preceding calendar year, or any part thereof due to sickness or injury, and for this reason only, the vacation pay is less than the following minimum, the vacation pay shall be increased to a minimum of Five Hundred dollars ($500.00) per week, provided the employee must have resumed his normal duties not less than three (3) months before vacation is granted An employee who has been on sick leave during the current year and who returns to work during such year, may by mutual agreement be paid the vacation due him in lieu of time off In no instance will vacation be paid twice for the same period of time. ARTICLE XII GENERAL The Company will continue to supply the safety and wearing apparel for positions as listed below and under similar conditions. Also, one hundred percent (100%) of the cost of safety boots or shoes will be reimbursed to a maximum of Two Hundred Sixty dollars ($260.00) every twenty~four (24) months. New employees will receive reimbursement at the successful end of their probation period. Unused portion of their allowance can be rolled forward for one (1) year. Suitable wearing apparel will be supplied all Job Groups (once an employee has reached 12 months of employment), including any temporary assignment that maybe assigned to employees The Company shall pay employees their wages bi~weekly, every second Thursday, by direct deposit only, for wages owing them for work performed in the immediate past two (2) calendar weeks. Payroll corrections less than $20.00 net pay will be corrected on the following pay It is understood that the following are part of this agreement: (1) Pension Benefit Plan (2) Letter of Understanding #1- Short Work Assistance Payment (S.W.A.P.} (3} Letter of Understanding #2 - Student Employees ( 4} Letter of Understanding #3- Hours of Work (5} Letter of Understanding #4- Amendment to Clause (6) Letter of Understanding #S- Cross Training (7} Letter of Understanding #6- Severance (8} Letter of Understanding #7- Welfare Benefit Plan (9} Letter of Understanding #8- RBC Group Savings Plan An employee appointed lead hand shall have the authority to instruct and/or train employees, assign employees their work and report facts. Such employee shall not have the authority to discipline or recommend discipline and is not considered as a supervisor under the tenus of the OHSA and Bill C45. 31

32 13.05 The Company and the Union shall appoint a joint Labour Management Safety Committee. The Committee shall be composed of an equal number of representatives of Management and Union Employees, but not more allowed for by the OH&S act. The Company shall upon request of a member of the Labour Management Safety Committee provide the Committee, whenever possible, with a Material Safety Data Sheet of any materials used in the manufacture of its products. The purpose of the Labour-Management Safety Committee is to provide effective methods for the elimination of conditions hazardous to the health and safety of the employees. The Company agrees that the standards of the Occupational Health and Safety Act, as amended, shall constitute minimum acceptable practices. The Committee shall: (a) Meet once per month on a definite established schedule (b) Make periodic inspection of the plants, but not less frequently than once every two (2) months Employees excluded from the bargaining unit shall not normally perform work that would deprive employees in the bargaining unit of work. Exceptions are when training employees, performing work of an experimental nature, taking of inventory, running in new machinery or performing work of an emergency nature The Company will provide a tool allowance of One hundred and seventy-five dollars ($175.00) per calendar year to employees in Job Group A to cover all new tool purchases required for the position. A requisition for approval, prior to purchasing and copies of the invoice for such tools shall be presented to the Manufacturing Manager at his request. In addition to the above, the Company shall replace any worn tools and supply any specialized tools at no cost to the employees in this group An employee may refuse to work or do a particular work where he has reason to believe that: ( 1) any equipment, machine, device or thing he is to use or operate is likely to endanger himself or another employee; (2) the physical condition of the work place or the part thereof in which he works or is to work likely to endanger himself, or another employee; (3) they may be endangered by workplace violence. 32

33 13.09 (a) If as set down in Article 13.08, an employee refuses to work or do particular work, he shall promptly report the circumstances of his refusal to his supervisor, who shall forthwith investigate the report with representatives of the Occupational Safety and Health Committee. (b) Following the investigation and any steps taken to deal with the circumstances that caused the employee to refuse work or do particular work, if the employee continues to have reasonable grounds to believe that carrying out the work would endanger himself or another employee, then an inspector representing the Ministry of Labour shall investigate the refusal to work and shall give his decision in writing as soon as possible. (c) The employee shall be found alternative work until such time the job has been made safe or determined to be safe to work on Pending the investigation and decision of the inspector, no employee shall be assigned to use or operate the equipment, machine, device, or thing or to work in the workplace or the part thereof which is being investigated until the job in question has been deemed safe to operate by the Plant Safety Committee No disciplinary action shall be taken against any employee by reason ofthe fact that he has exercised his right to refuse. ARTICLE XIII DURATION OF AGREEMENT Amendments to this agreement may be made in writing by mutual consent of both parties This Agreement shall become effective on the 1st day of April 2011, and shall remain in full force and effect until March 31, 2015, and shall continue in effect thereafter from year to year for further periods of one year each, unless either party shall have given written notice of termination or proposals for amendments to the other party not more than ninety (90) days prior to the expiration date or any yearly period thereafter. In the event of written notice of termination or proposals for amendments having been given by either party, as herein provided, negotiations shall be carried on during the notice period with a view to completing a new Agreement. Should such negotiations extend beyond the expiration date, this Agreement shall remain in full force and effect as provided in the Ontario Labour Relations Act. 33

34 IN WITNESS WHEREOF the parties have executed this Agreement. FOR THE COMPANY FOR THE UNION Gregory MacKenzie Vice President. Manufacturing, Plasti-Fab Ltd. Michael Sarazin Manufacturing Manager Plasti-Fab Ltd. (Kitchener) Marty Warren US W A Staff Representative Janice Greig Unit Secretary Rob McKeown Unit Chair Shawn Ross Unit Grievor 34

35 FOR THE COMPANY FOR THE UNION Manufacturin anager Plasti-Fab Ltd. (Kitchener) Gregoct:ei4/ L, Vice President, Manufacturing, Plasti-Fab Ltd. IN WITNESS WHEREOF the parties have executed this Agreement. 34 Shawn Ross Unit Grievor Rob McKeown Un. it Chair ~ ~~,, Unit Secretary Ma*.~ L- USWA StaffRepresentative

36

37 APPENDIX "A" JOB TITLE: Group A RATE RATE RATE RATE 2.5% 2.5% 2.5% 2.5% Eff.4/1/11 Eff.4/l/12 Eff.4/1/13 Eff.4/1/14 Maintenance Mechanic - Grade AA $28.19 $28.89 $29.62 $30.36 Maintenance Mechanic- Grade A $25.92 $26.57 $27.23 $27.91 Maintenance Mechanic Helper - Grade B $18.20 $18.66 $19.12 $19.60 JOB TITLE: Group B Logistics Coordinator (82) $24.66 $25.28 $25.91 $26.56 JOB TITLE: Group Bl Shipper Receiver (D 1) $18.79 $19.26 $19.74 $20.23 Forklift Driver (D2) $18.43 $18.89 $19.36 $19.85 JOB TITLE: Group C Block Moulder/Prefoamer (E I) $20.01 $20.51 $21.02 $21.55 JOB TITLE: Group D1 Quality Testing (F4) $18.77 $19.24 $19.72 $20.21 JOB TITLE: Group D2 Contour Operator (HS) $18.94 $19.41 $19.90 $20.40 JOB TITLE: Group D3 Hot Wire Operator (F 1) $18.50 $18.96 $19.44 $19.92 Hot Wire Helper (F2) $17.84 $18.29 $18.74 $19.21 LEAD HAND RATE: The current Lead Hand rate of thirty (30) cents per hour higher than the rate of the job on which they are employed will change according to the schedule below: April 1, 2011 $0.50 Group "A" will receive fifty (50) cents per hour higher than the rate of the job on which they are employed. 35

38 APPENDIXB THE COST OF LIVING ALLOWANCE (C.O.L.A) Cost of Living Allowance will be frozen for the tenn of this agreement. The following is the previous method of calculation. I. The amount of interim increase shall be calculated below on the basis of the Consumer Price Index published by Statistics Canada 1971 = 100 hereafter referred to as C.P.I. 2. Base for calculation shall be June 1989 C.P.I. plus 5.0 points. (a) The first payment shall be calculated and paid the first pay period following September 30, It will reflect one (l) cent for each full 0.3 points the August 1989 C.P.I. exceeds the base for calculation. (b) The second payment shall be calculated and paid the first pay period following January 31, It will reflect one (I) cent for each full 0.3 points the December 1989 C.P.I. exceeds the August 1989 C.P.I. 3. The third payment shall be calculated and paid the first pay period following May 31, It will reflect one ( 1) cent for each full 0.3 points the April 1990 C.P.1. exceeds the December 1989 C.P.I. 4. The interim increase will be considered as earnings, but will be boxed from other wage payments on the employee's statement of earnings and deduction slip. 5. In the event Statistics Canada does not issue the appropriate Consumer Price Index on or before the date on which a payment is to be calculated, any payment required will be made at the beginning of the first pay period following receipt of the index. 6. No payments retroactive or otherwise shall be made due to any revision which may later be made in any published Consumer Price Index by Statistics Canada. 7. Continuation of the interim payments is dependent upon the availability of the official Statistics Canada Consumer Price Index, calculated on the same basis and in the same form as published for June, Computation for interim increases will be based on hours worked and hours paid for, including earnings for any payment under the S.W.A.P. Agreement and overtime. 9. C.O.L.A. will be folded in at the end of each contract year and become incorporated into the rates. 36

39 LETTER OF UNDERSTANDING #1 SHORT WORK ASSISTANCE PAYMENT (SWAP) This will clarify that when the plant works less than a forty ( 40) hour week on a scheduled basis due to work shortage, SWAP will be paid, pursuant to the provisions as outlined in Clause

40 LETTER OF UNDERSTANDING #2 STUDENT EMPLOYEES I. "Student employees" are defined as students who are employed on a temporary basis and work on a fulltime basis during school breaks or work on a casual basis during other times of the year. 2. All the provisions of the Collective Labour Agreement apply to students (except the Welfare Benefit Plan, Pension Plan, floater holidays and seniority). 3. Student employees shall work the jobs and hours assigned by the Company. 4. No position shall be filled by a student longer than six months. Any position longer than six months shall be filled according to clause l Students may be offered fulltime positions prior to hiring a new employee. If hired they will begin to accumulate seniority as of the date they change from Student Employee to fulltime employee. 6. Student Employees will be used when fulltime employees are not available to perform work. It is not the intention of the Company to replace full time employees with student employees. 7. Students will be the last to be offered overtime. 8. Students will earn 75% of base rate of the job they are performing. There will be NO probationary rate applied. 9. Students hired from April 1 to June 1, 2011 will continue to receive their rate of pay at time of hire for the duration of the 2011 calendar year. If they are to return in subsequent years, during the term of this contract, they will be paid at the rate as specified in point 8. 38

41 LETTER OF UNDERSTANDING #3 Hours of Work Agreement Between PLASTI-FAB LTD KITCHENER, ONTARIO And UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL ON BEHALF OF ITS LOCAL 838 Further to the Collective Agreement between Plasti-Fab Kitchener and the United Steel, Paper And Forestry, Rubber, Manufacturing, Energy, Allied Industrial And Service Workers International Union, Local 838, it is agreed that this letter constitutes an excess hours of work agreement under s.l7 of the Employment Standards Act, The parties further agree that employees will not work beyond 12 hours in any single day or 60 hours in any single week unless an exceptional circumstance (as defined in the ESA, 2000) applies, or unless the employee is otherwise permitted under the legislation. The parties further agree that nothing in this Letter of Understanding shall be interpreted to affect or infringe on any rights and benefits in the Collective Agreement between the parties. Signed this day of June, 2011 at Kitchener, Ontario For the Company For the Union Mike Sarazi~ Manufacturing Manager Plasti-Fab Ltd. (Kitchener) Robert McKeown USW Local 838 Unit Chair 39

42 LETTER OF UNDERSTANDING #4 AMENDMENT TO CLAUSE OF THE COLLECTIVE LABOUR AGREEMENT The Collective Labour Agreement states that "The President and Unit Chairperson of Local #838 will be assigned to the normal day shift operation, so long as the employee retains such office and so long as each employee is from a different company within the Local." For the term of this agreement, it has been agreed that the President and Unit Chairperson of Local #838 will be assigned day shift for the length of this agreement or until the employee is no longer in office, whichever comes sooner, even though the incumbents are from the same company within the local. Where the unit chairperson of Local is affected by a layoff, he will be considered to have one day more seniority than the most senior employee in the plant. 40

43 LETTER OF UNDERSTANDING #5 CROSS TRAINING 1. Training is voluntary. After ratification of the 2011 contract, management shall review skill sets with each employee. 2. Training will be undertaken by seniority: (a) a list will be complied of who would like to be trained; (b) the employee can list 2 choices, in order of priority; (c) as a requirement becomes open the senior employee will be trained: (1) as long as there are resources available to replace the trainee; (2) it may mean that other staff will need to be trained first to free up this person. 3. An employee can only be trained for 1 new function per year, unless no one else has applied for the opening. 4. Once yearly, all employees can submit their 2 choices. Submission date TBD. 5. Training will be scheduled to best suit availability and production requirements. 6. This draft doesn't supersede the intent or purpose of the contract, specifically 3.01, 3.02, 3.05 and obligations of This draft doesn't supersede a current trained employee for a particular job, i.e. John Doe is the trained senior contour operator on day shift and the company plans on getting a new or additional piece of equipment specific to that operation, then John Doe will be the first staff trained, regardless of seniority, i.e. the prefoamer operator has 5 more years senio.-ity and would like to be trained before the contour operator. 8. Training will be conducted and evaluated under management supervision. 9. All staff is to be supportive of trainees and aid in their learning. 10. Qualification in each group is to be paid at a rate of $0.25 per hour, to a max. of $1.00 per hour. 11. Premium and opportunity isn't applicable for staff outside of their work restrictions, since they cannot be employed in that function. 12. Students or employees with no seniority cannot participate, unless no one else has applied. 13. Premium disappears if work group and/or equipment is eliminated, i.e. "group D2" is 4l

44 for contour operator. If the plant no long has a contour machine, premium isn't applicable. 14. Staff accepts that being trained may be required to work afternoons. If 2 or more staff is trained, senior staffs to be offered work first. 15. Maximum premium is $ Updated matrix to be posted every 6 months. Preferred Training matrix (subject to change) Group C Block mould - min. 8 staff Prefoam - min. 8 staff Group 8 Logistics- min. 3 staff Group 81 Shipping- min. 3 staff Forklift Op.-rnin.12 staff Group Dl Quality- min. 3 staff Group D2 Contour Op.- min. 4 staff Group D3 Hot Wire Op.-min. 8 to 10 staff 4x8 Op.-min. 4 to 8 staff Treffner Op.-min 6 staff Saw Op-rnin. 4 to 6 staff Valleys/Crikets-rnin.6 staff Current 5 staff Current 5 staff Current 1 staff Current 3 staff (need fulfilled) Current 8 staff Current 3 staff (need fulfilled) Current 2 staff Current 12 staff (need fulfilled) Current 13 staff (need fulfilled) Current 4 staff Current 2 staff Current 6 staff (need fulfilled) 42

45 LETTER OF UNDERSTANDING #6 SEVERANCE PAYMENT The Company will process "without cause" termination and severance pay in accordance with and equal to the provisions as defined and outlined in the applicable employment standards or legislation (e.g. the Ontario Employment Standards Act and its regulations): Upon the receipt of the entitlements in accordance with this legislation noted above, no further amounts will be due and payable to terminated members whether under statute or common law. The employee whose employment is severed will qualify for severance pay provided the employee has worked for the Company for five (5) or more years (including all the time spent by the employee in employment with the Company, whether continuous or not and whether active or not). Provided this condition is met, the following additional qualifiers, as defined in the applicable employment standards or legislation, will not be applicable: His or her employer: Has a payroll in Ontario of at least $2.5 million; Or Severed the employment of 50 or more employees in a six-month period because all or part of the business closed. 43

46 LETTER OF UNDERSTANDING #7 GROUP BENEFIT PLAN (Formerly Welfare Benefit Plan) This plan is made and entered into the 1 5 ' day of July, 20ll until March 31, 2015, by and between Plasti-Fab Ltd. and the United Steelworkers on behalf of Local838. The employees will be provided with a Group Benefit Plan booklet that describes the principal features of the group benefit plan. In addition the following will remain in effect from the former Welfare Benefit Plan. l. Eligibility for benefits will commence after reaching 720 regularly scheduled work hours. Hours for overtime, scheduled vacation time or General Holidays are not applicable. 2. An employee who is granted a leave of absence for any reason other than sickness or injury, after becoming eligible under the Welfare Benefit Plan, shall continue to be eligible for all benefits for the employee and their dependents except Short Term Disability and Long-Term Disability benefits for the employee, until the expiration of three (3) months from the effective date of such leave. However, local Union officers on approved leave of absence for Union business shall continue to be covered for Short Term and Long Term Disability benefits during such leave of absence. 3. An employee has the right to approach the Company to formalize an appeal where a situation arises that there is a dispute as to eligibility for benefits or payment of claims. The Company will contact the insurer as to requirements for an appeal. The insurer will advise the employee accordingly in writing. 4. The Company will be responsible for any costs charged by doctors to complete Short Term and Long-Term Disability forms provided by the insurance company. In addition, the Company shall pay for any and all medical documentation, notes/forms if requested by the Company and or Insurance Carrier. 5. An employee who retires shall cease to have coverage for benefits for the employee and their dependants, with the exception of Life Insurance. Any employee who is retired, and providing the employee has at least ten (10) years' seniority, will be to a Life Insurance policy of $ at no cost to the employee. 6. There will be no changes to the principal features of the group benefit plan for the duration of this contract from July 1, 20ll to March 31, An employee who is laid off shall cease to be eligible for Short Term and Long Term Disability benefits as of the day following lay-off. All other benefits under this Group 44

47 Benefit Plan will terminate at the end of the legislated temporary lay of period in the applicable employment standards or legislation (e.g. the Ontario Employment Standards Act and its regulations). An employee will have the privilege of continuing all benefits, except Short Term and Long Term Disability benefits, for a period of twelve (12) months from the date his coverage would otherwise have been discontinued, by payment of the premium applicable to the remaining benefits. Such premium shall be payable monthly in advance to the Company. 8. An employee that is on maternity or parental leave, as long as they continue to pay for their Long Term Disability premiums, is eligible to continue all benefits, including Short and Long Term Disability. 45

48 LETTER OF UNDERSTANDING #8 RBC GROUP SAVINGS PLAN PLASTI-FAB- RETIREMENT SAVINGS PLAN ACCOUNT- PLAN# 1510 P F B TM -C 0 R P 0 R A T I 0 N ).'l\ BeHer building ideas W This plan is for eligible employees hired on or after April I, We encourage all employees to prepare for their long-term financial security. To help you plan for your retirement, we have established a group retirement plan with RBC Group Financial Services for your benefit. This plan provides qualified investment professionals to help you review your goals and select the appropriate investment options. An Overview of Your Plan Options PLAN STRUCTURE Each eligible employee sets up an RBC Group RSP account which allows you to contribute directly from your pay cheque. When you establish your account, an RBC investment professional will help you select from a diverse range of investment options. Your RBC Group RSP enrolment kit provides more information on your options and requirements. EUGIBIUTY All permanent employees (working a minimum of 24 hours per week) are eligible to join the Retirement Savings Plan (RSP registered) and/or the Group Investment Account (GIA non-registered- see the separate information sheet on Plan # 4075) following 12 months of continuous employment. Employees with less than 12 months service may participate in either plan but will not receive any Employer Contributions until they meet the necessary qualifications. EMPLOYEE CONTRIBUTIONS An employee electing to participate in the plan may choose to contribute a percentage of their gross regular earnings. An employee is entitled to participate in either or both the registered and non-registered sections of the plan. The elected percentage of gross regular earnings may be allocated between the two sections or can be directed to one section only. Once qualifying conditions have been met, an employee contribution of up to a maximum of 6% of gross regular earnings will be proportionately matched by the Company (employer's contribution) as specified in the table. The amount of gross regular earnings the employee desires to contribute (the contribution level) may be changed at any time with a maximum of two (2) changes allowed in any single calendar year. Deductions are made from each biweekly pay period at the contribution rate chosen by the employee. 46

49 EMPLOYER CONTRIBUTIONS Once the employee is eligible for employer contributions, and has joined the plan, the Company will contribute to the plan at the rate 20 cents for each dollar of employee contribution, up to a maximum employee contribution of 6o/o of their gross regular earnings. Employees may contribute more that 6% of their gross regular earnings (to a maximum of 25%) however any contributions in excess of the 6% level will not be matched by any employer contributions. The employee can choose to direct the Company's contribution differently than their own contributions. Employer contributions shall be paid on a bi-weekly basis and deposited along with the employee's contribution to the appropriate Royal Bank account opened in the employee's name. (NOTE: The employee is responsible for opening this account at a Royal Bank branch.) All employer contributions are immediately vested with the employee. After 5 years of employment, the Company's contribution percentage applicable to the registered plan (only) increases, as specified in the table below. Years of Completed Service Employer's Contribution Rate < l year (12 months) NO Employer Contribution 1-5 years 20 cents per dollar 5+years 25 cents per dollar 10+ years 30 cents per dollar 15+ years 35 cents per dollar 20+ years 40 cents per dollar SPOUSAL OPTION RESTRICTIONS You may choose to direct all or a portion of your contributions to a Spousal Plan. The purpose of this plan is to help you plan for your retirement. There are no withdrawal restrictions on this plan, however; RBC will withhold taxes and there could be further income tax implications you should discuss with your tax advisors. An employee may suspend contributions to the plan at any time, but not retroactively. A suspension of contributions MUST be for a minimum of six (6) month duration and further requests for a suspension after recommencing contributions are NOT allowed within a six (6) month period. The Company contributes and assists in the administration and bears no responsibility for the performance of the funds selected by each employee. It is the employee's responsibility to ensure that the amounts contributed to their RSP account do not exceed their maximum contribution limit for the taxation year. The Company bears no responsibility for any penalties or consequences associated with over contributions. Employees are encouraged to seek independent financial and legal counsel on these matters. INVESTMENT OPTIONS Your investment options are outlined in your RBC Group RSP enrolment kit. Additional information is available online by visiting DECISION MAKING TOOLS RBC provides advice from qualified investment professionals and investor profile tools to determine your asset allocation profile. Educational materials, tools and calculators are also available at to help determine contribution amounts and project future balances. 47

50 STATEMENTS Statements are issued quarterly. If you do not receive a statement, please contact RBC at RETIREMENT OR TERMINATION OPTIONS Once you reach retirement or terminate membership in the plan, you can: 1. Maintain an individual account with Royal Bank. 2. Transfer your investments to another finandal institution. 3. Redeem your funds for a cash payment (subject to applicable rules, regulations and withholding taxes). 4. Transfer your balance to a RIF (Retirement Income Fund) to generate retirement income. ENROLMENT To join the plan and open an account you have 2 options (see page 7 of the Participant' Guide to Group RSPs for further details): 1. visit a Royal Bank branch 2. call RBC at Advise them you want to open a Group RSP account under Group #1510. The bank must provide you with part 2 Employer/Payroll copy of the Group RSP application (see attachment) which is forwarded to payroll to commence contributions. RBC Group Savings Plans are products of RBC Group Financial Services, a division of RBC Asset Management Inc. Registered trademarks of Royal Bank of Canada. RBC Financial Group Is a trademark of Royal Bank of Canada. Used under licence. "' Trademark of Royal Bank of Canada. Used under licence. ~ 2007 Royal Bank of Canada. 48

51 PENSION PLAN SPONSORED BY: PLASTI-FAB LTD. AND UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL On behalf of its LOCAL 838 Policy GA OOT/01 49

52 PENSION PLAN The following changes have been made to the Pension Plan. I. This plan is for eligible employees hired on or after the effective date of the Pension Plan and prior to April 1, The pension benefit will remain at the amount of $24.00 per month for each year of service for the term on the contract. 3. The pension plan has been revised to conform to the requirements of the Ontario Pension Benefits Act, as follows: a) Effective January I, 1987, any employee who has completed two years of service will automatically have full vesting in pension benefits earned after January I, 1987 and these benefits will be available at retirement. For benefits earned prior to January 1, 1987, pension benefits are available only after attaining age 45 and the completion of ten years of service. b) When pension benefits are actually taken, if, at that time, the employee has a spouse, the pension benefits must be taken on a Joint and Last Survivor Basis, unless the spouse has signed a waiver relinquishing the right to pension benefits. c) In the event of death, prior to retirement, if you have completed at least two years of plan membership, your beneficiary will receive the value of the pension benefits earned after January I, Your spouse will automatically be your beneficiary unless your spouse has signed a waiver form with respect to any such benefits. PENSION BENEFIT PLAN This Plan made and entered into this 1st day of April 2011 by and between Plasti-Fab Ltd. Kitchener, Ontario, hereinafter called the "Company" and the United Steelworkers on behalf of its Local 838 thereof, hereinafter referred to as the "Union 11 Subject to obtaining and retaining such acceptance of the Pension Benefit Plan by such Pension Commissions and other supervisory bodies as the Company may deem necessary and subject to obtaining and retaining such acceptance of the Pension Benefit Plan by the relevant tax authorities as the Company may deem necessary to establish that the Company is entitled to deduct the amount of its contributions to the Pension Fund as an expense before taxes under the provision of the Income Tax Act, and any other applicable tax laws, as now in effect or as hereafter amended or adopted, the Company agrees with the Union that the Company will provide the pensions and 50

53 deferred life annuities provided for herein, which are awarded to those who become eligible therefore during the term of this Plan or any renewal hereof. No action taken in performance of the terms of the Plan and consistent herewith is to be construed or interpreted as being a violation of any of the terms of any Collective Labour Agreement between the Company and the Union: As used in this Plan: (a) The term "employment" means the status of a person who is employed by the Company in the bargaining unit hereinafter defined during all times he is enrolled on the Company payroll. (b) The term "employee" means any person who is in employment. (c) The term "former employee" means the status of a person who previously had been in employment. (d) The term "Collective Labour Agreement" means the Collective Labour Agreement between the Company and the Union effective Aprill, (e) The term "Bargaining Unit" means the unit of employees defined in the Collective Labour Agreement. (f) The term "seniority'' means the seniority of an employee which has been and remains credited to him or would be credited to him if re-employed after lay-off, in accordance with the provisions of Article III of the Pension Benefit Plan. (g) The term "normal retirement date" means the first day of the month following an employee's 65th birthday or the employee's 65th birthday if it should fall on the first day of the month. (h) The term "retiree" means a person who has retired and has become and remains eligible for a pension under the "Pension Benefit Plan". (i) An employee who is "totally and permanently disabled" means one who is disabled by bodily injury or disease other than disability which: i) was contracted, suffered or incurred while the employee was engaged in or resulted from his having engaged in a criminal enterprise, or ii) resulted from wilfully self-inflicted injury, or iii) can be established as due to service in the armed forces of any country, which will presumably permanently, continuously, and wholly prevent him during the remainder 51

54 of his life from meeting the requirements of any job whatsoever, covered by the Collective Agreement. G) Subject to the provision of Section 8.01 herewith, "the effective date of the Pension Benefit Plan" means the 1 51 day of Apri120ll. (k) The term "Pension Benefit Plan," or "Plan" means the Company's non-contributory pension plan as set forth hereafter. (I) The term "Deferred Life Annuity," means deferred life annuity as defined in the Pension Benefit Act, Revised Statutes of Ontario, (m) The term "Beneficiary" means the person or persons named by the employee under this Plan. ARTICLE I ELIGIBILITY FOR RETIREMENT AND AMOUNT OF PENSION 1.01 NORMAL RETIREMENT I) An employee (a) who has been in active employment on or after the effective date of the Plan, and (b) who has been in active employment prior to Aprill, 2011 (c) who has attained age sixty-five (65), and (d) who has ten (10) or more years of seniority may retire on or after April 1, 2011, and is eligible for a Normal Retirement Pension upon his retirement. 2) The normal retirement pension is subject to the deductions provided for in Article II to consist of a basic monthly pension for life according to the schedule set out below for each year or pat1ial thereof of credited service for an employee at the date of retirement. $24.00 effective Aprill, AUTOMATIC RETIREMENT An employee or a former employee eligible to receive a pension as provided in Section 1.01 shall be retired on his normal retirement date EARLY RETIREMENT 1) An employee: (a) who has attained age sixty (60), but not age sixty-five (65) and (b) who has ten ( 1 0) or more years of seniority and 52

55 (c) who has acquired any seniority since attaining age sixty (60) may retire and be eligible for an Early Retirement Pension in the event of such retirement, but discharge for cause is not to be considered as retirement for the purposes of the sub-section. 2) An employee: (a) who has attained age fifty-five (55), but not age sixty (60) or is between age sixty (60) and age sixty-five (65), but does not qualify for Early Retirement under subsection ( 1) of this section and (b) whose combined age (computed to completed months for a fractional year) and period of seniority (computed to completed months for a fractional year) total eighty-five (85) years or more, and (c) who has acquired any seniority since attaining age fifty-five (55). May retire and be eligible for an Early Retirement Pension in the event of such retirement, but discharged for cause is not to be considered as retirement for the purpose of this subsection. 3) The Early Retirement Pension is, at the employee's option to be either: (a) a deferred monthly pension calculated in the same manner as for Normal Retirement, the payment of which is to commence with the month following that in which the employee attains age sixty-five (65) and the payments of which are to be subject to the deductions provided for in ARTICLE II or (b) an immediate pension, the monthly amount of which is first to be computed, in the same manner as for Normal Retirement, assuming no deductions under ARTICLE II, but each monthly payment of pension to be reduced, for each complete month, if any, to elapse from the date of Early Retirement to the first ( l st) day of the month coincident with, or next following, the sixty-fifth (65) anniversary of the retiree's birth by four-tenths of one per cent (4/10%) of the amount computed for the first monthly payment before deductions and the reduced pension is then to be subject to the deductions provided for in ARTICLE II ABSENCE FROM WORK Absence of any employee or former employee from active employment at any time when he would otherwise be eligible for Normal Retirement or Early Retirement is not to preclude such disability or sick leave, lay-off or other Company approved leave of absence and provided the employee has retained his seniority under a Collective Labour Agreement since he was last in employment. 53

56 1.05 TOTAL AND PERMANENT DISABILITY (I) An employee (a) who becomes totally and permanently disabled while accumulating seniority with the Company and (b) who has ten ( 1 0) or more years of seniority at the time of occurrence of total and permanent disability may retire on Disability Retirement on or after the 1st day of April, 2011 and prior to his normal retirement date and is eligible for a Disability Retirement Pension in the event of such retirement. (2) The Disability Retirement Pension is to be calculated in the same manner as for Normal Retirement and is subject to the deductions provided in ARTICLE II. (3) There is not to be any duplication of a pension under this Section 1.05 by a pension under any other Section of this ARTICLE I. (4) A retiree on Disability Retirement is required to submit to a physical examination at any time during such retirement up to his normal retirement date for the purpose of determining his condition, whenever such examination is requested by the Company, but not more often than twice in any calendar year after total and permanent disability has been established. (5) A retiree who refuses to submit to any physical examination properly requested in accordance with the provisions of subsection (4) of this Section 1.05 is to have his Disability Retirement Pension suspended until he does submit to such examination. (6) If after his retirement on Disability Retirement, but before his normal retirement date, a retiree ceases to be totally and permanently disabled or engages in any occupation or work for wages or profit, his Disability Retirement may be terminated by the Company. (7) Where Disability Retirement is terminated pursuant to the provisions of sub-section (6) of this Section 1.05, the former employee is to be rehired by the Company in a capacity consistent with his physical and mental ability and with the seniority which he had immediately prior to the commencement of his Disability Retirement provided such work is available. (8) An employee rehired pursuant to the provision of subsection (7) of this Section 1.05 is, upon his return to work to be credited with the seniority as outlined in Section of the Collective Agreement. 54

57 2.01 DEDUCTIONS FROM PENSIONS ARTICLE II DEDUCTIONS There is to be deducted from the amount of pension or payment of deferred vested interest otherwise payable to a retiree in any month, the amount of any benefit annuity, pension or payment of similar kind that is or would, upon application, be payable to such retiree in such month under contract G.A OOT/01 ofthe Sun Life Assurance Company, to the extent that the benefits were attributable to contributions made or premiums paid by the Company SENIORITY ARTICLE III SENIORITY An employee's seniority shall mean the period of time dating from the beginning of the month coinciding with the employee's company service date in effect as of April 1, 2011, as established by prior rules and policies or as thereafter adjusted or determined by the rules and procedures as defined in ARTICLE I and other applicable provisions of the Collective Labour Agreement effective April 1, 2011, but no seniority shall be accumulated while an employee was on Disability Retirement under this Pension Benefit Plan or any other Pension Plan of the Company. An employee granted a leave of absence or extension or same under Section of the Collective Labour Agreement of April 1, 2011 between the Company and the Union or any similar leave of absence or extensions granted under subsequent Collective Labour Agreement between the Company and the Union shall not accumulate seniority for pension purposes while on such leave. Seniority shall accumulate for employees granted a leave of absence under Section of the Collective Labour Agreement of April 1, 2011 for a maximum period of one (1) year. The records of the Company shall be presumed to be conclusive of the facts concerning the seniority, employment, non-employment or disability retirement of any employee, a former employee, retiree or application for a pension unless shown beyond a reasonable doubt to be incorrect. An applicant for pension or retiree shall if requested by the Company, prove his age by evidence satisfactory to the Company. 55

58 4.01 NET AMOUNT PAYABLE ARTICLE IV PAYMENTS OF PENSIONS (1) No employee, former employee or retiree is entitled to a pension under the Pension Benefit Plan, except as expressly provided in this ARTICLE IV. (2) Only the net amount of any pension, after making all the deductions provided for in ARTICLE II from the respective portions ofthe pension as therein provided is payable under the Pension Benefit Plan DATE OF PAYMENT (1) The pension payable to a retiree on normal retirement or a retiree who has elected the immediate pension available in the event of early retirement (a) becomes payable, if he is then living (i) on his normal retirement date or (ii)for non-deferred early retirement during the month next following the date on which he files an application for such pension with the Company and (b) is payable during each month thereafter during his lifetime. (2) The pension payable to a retiree who has elected the deferred pension available in the event of Early Retirement, (a) becomes payable if he is then living during the month next following the date on which he attains age sixty-five (65) (b) is payable during each month thereafter during his lifetime. (3) The pension payable to a retiree on Disability Retirement, (a) becomes payable, if he is then living, on the first day of the month next following the latest of: (i) the date on which his Disability Retirement commences or (ii) the date on which he ceases to receive remuneration from the Company or (iii) the date on which he ceases to be eligible for a weekly indemnity benefit under the Welfare Benefit Plan, between the Company and the Union or (iv) the date on which he files an application for such pension with the Company on a form supplied by the Company and (b) is payable during each month thereafter up to and including, the earlier of: (i) the month in which his Disability Retirement terminated pursuant to the provision of sub-section (6) Section 1.05 or (ii) the month in which he dies. S6

59 (4) The Company may adopt such procedures as it may find convenient with respect to the payment of pensions where the next amount payable is less than the schedule set out below per month and' may pay any such pension quarterly, semi-annually or annually or, if permitted by law, by a lump sum payment, which in the opinion of the Company is of equivalent actuarial value. $24.00 effective Aprill, OPTIONAL FORMS OF NORMAL PENSION ( l) The normal form of the Retirement Pension provides for it being payable for a sixty (60) month term certain and for the retiree's remaining lifetime, if any, and is subject during the retiree's lifetime, to the deduction provided for in Section (2) Any payments to be made pursuant to the sub-section (l) of this Section 4.03 after a retiree's death are to be made as they respectively fall due, to the retiree's beneficiary, if any, otherwise to his estate. (3) An employee has the right by notice in writing submitted to the Company to elect that if and when he becomes entitled to a Normal Retirement Pension it shall be converted from the date of commencement of the Retirement Pension payments into an adjusted pension of equal actuarial value as determined by the Company payable for a ten (I 0) or fifteen (15) year term certain as specified in said notice of election and for his remaining lifetime, if any. (4) An employee who has made or is deemed to have made an election pursuant to subsection (3) of this Section 4.03 may, at any time, prior to his retirement, revoke or revise such election by submitting written notice of such revocation to the Company. (5) An election made or deemed to have been made by an employee pursuant to subsection (3) or (4) of this Section 4.03 is inoperative and ineffective in the event of the death of the employee prior to retirement or in the event of his retirement prior to attaining the age of sixty-five (65). (6) Where an election made or deemed to have been made pursuant to sub-section (3) or (4) of this Section 4.03 comes into effect and the retiree dies prior to the month of expiry of the term certain elected payments of the actuarial equivalent adjusted pension, are to be made to the retiree's beneficiary, if any, otherwise to his estate, from and including the month following the retiree's death to and including the month of expiry of the term certain elected. (7) The estate of a retiree or of a beneficiary has the right at any time when entitled to receive any payment pursuant to sub-section (2) or (6) of this Section 4.03 to elect to 57

60 receive, in lieu ofthe remaining payments to the estate, a lump sum settlement equal to the commuted value of such remaining payments, such commuted value to be calculated on the basis of interest at such rate as may be determined by the Company BENEFICIARY (I) Subject to the provision of this Section and to any applicable laws, an employee or former employee may designate a beneficiary or new beneficiary to receive the payments, if any to be made under this plan after his death. (2) An employee or former employee who has designated a beneficiary or a new beneficiary pursuant to subsection (I) ofthis Section may revoke such designation. (3) The right to designate a beneficiary or new beneficiary or to revoke a designation of a beneficiary pursuant to sub-section ( 1) or (2) of this Section 4.04 is to be exercised by the execution by the employee or former employee and by delivery to the Company of an instrument in writing which expressly provides that the designation or the revocation, whichever is the case, is made with reference to his plan. (4) After the effective date of this Plan any employee who has not designated a 11 beneficiary 11 to the Company in writing prior to his death shall have his beneficiary considered to be 11 his estate". (5) Upon delivery to the Company prior to, or on, or after the death of the employee, or former employee, of a designation of a beneficiary or a revocation of a designation of a beneficiary made or deemed to have been made pursuant to sub-section (I) or (2) of this Section 4.04 the designation or revocation, even if it is contained in a will or in an instrument purporting to the date of its execution, but without prejudice to the Company or the Carrier on account of any payment or payments made under this plan prior to such delivery. (6) Where an employee or former employee is not permitted to make a designation of beneficiary under the preceding provision of this Section 4.04 any payments to be made with respect to him after his death will be made to his estate, but no provision of his plan is to be construed as taking away any rights of such employee or former employee to direct how monies received by his estate are to be distributed or otherwise dealt with, by his personal representative RETIREE UNABLE TO CARE FOR HIS AFFAIRS (1) Ifthe Company deems that any retiree is unable to care for his affairs because of illness or accident any payment due, less a prior claim therefore, has been made by a dully appointed guardian, committee, other legal representative or public trustee, may be 58

61 made to the spouse, a child, a parent or to any other person deemed by the Company to have incurred expense for such retiree. (2) In acting under the authority of sub-section ( 1) of this Section 4.05, the Company is to endeavour to give effect to the wishes of the retiree where such wishes were expressed in writing by the retiree before he became unable to care for his affairs. (3) Any payment made pursuant to the preceding provision of this Section 4.05 is a payment for the account of the retiree and is to constitute a complete discharge of all liability under the plan therefore GOVERNING PROVISIONS The preceding provisions of this ARTICLE IV are to be read, interpreted and construed as being subject to Section 7.07 and 7.08 (General Provision). ARTICLE V ADMINISTRATION 5.01 The Company shall have the sole responsibility and authority consistent with the provisions of this Plan for the operation and administration of the Pension Benefit Plan. 6.0 I PENSION PLAN ARTICLE VI FINANCING ( 1) The Company is to maintain a Pension Fund consisting of a trust fund or funds and/or Insurance Company contract or contracts for the purpose of providing benefits under the Plan. The Company will annually or more often make contributions to the Pension Fund, in an aggregate amount sufficient to cover all current service costs and will fund any unfunded liability and any experience deficiencies in accordance with the Pension Benefits Act, 1965, of Ontario, and Regulations thereunder. (2) All payments made into the Pension Fund are to be held and administered and invested and loaned in accordance with all applicable Federal and Provincial Legislation and specifically including the Pension Benefits Act, Ontario REIMBURSEMENTS FROM PENSION FUND ( 1) The Pension Fund is to be used, on proper authorization of the Company in accordance with the Plan, to pay such benefits as are payable under the Plan. 59

62 (2) No employee, prior to the award of a benefit to him under the Plan, is to have any right to a benefit or an interest in any trust fund or insurance company contract or contracts established or entered into for the purpose of providing benefits under the Plan BENEFITS PAY ABLE SOLELY FROM PENSION FUND (1) The benefits payable in accordance with the provisions ofthe Plan are paid solely from the Pension Fund and each employee, retiree or other person who claims the right to any payment under the plan is entitled to look only to the Pension Fund for such payment. (2) No liability for the payment of benefits under the Plan is imposed upon the Company or upon the officers, directors or shareholders of the Company, save to any extent to which the Company may fail to carry out the provisions of Section 6.01 of this article VI NON-ALIENATION OF BENEFITS (1) The pension benefits provided under the terms of this Plan are for the employee's own use and benefit, and are not capable of assignment or alienation and do not confer upon the employee, any personal representative or dependent, or any other person, any right or interest in the said pension benefits capable of being assigned or otherwise alienated. (2) To the fullest extent permitted by the laws applicable, the benefits under this Plan are not subject to attachment or legal process for debts of retirees' or beneficiaries. ARTICLE VII GENERAL PROVISION 7.01 No employee shall be required or permitted during the term of this Plan or any renewal thereof, to make contributions to, or under any pension plan of the Company The seniority of an employee who shall retire under the Pension Plan in accordance with the provisions of ARTICLE I thereof, shall cease for the purposes of applying the provisions of any Collective Labour Agreement, which now is, or hereafter, shall be in effect between the "Company" and the "Union", except that if a retiree is rehired on cessation of his disability retirement, he shall be credited with the seniority which he had at the time of his disability retirement, and shall accumulate further seniority which he had at the time of his disability retirement, and shall accumulate further seniority from the time that he starts to work after his rehire. 60

63 7.03 The establishment of the Pension Benefit Plan shall not give any employee any additional right to be retained in the employment of the "Company" and all employees shall remain subject to discipline, discharge, lay-off, to the same extent as if such plan had not been put into effect If any dispute shall arise between the Company and any employee, applicant for a pension who is represented by the Union or retiree with reference to eligibility, age, seniority or amount of pension, or as to his retirement by the Company, such dispute may be taken up as a grievance under the grievance provision of the Collective Labour Agreement, then in effect omitting all steps prior to Step 2 of such procedure. If any such grievance shall be taken to arbitration in accordance with such procedure, the arbitrator, in so far as it shall be necessary to the determination of such grievance, shall have authority only to interpret and apply the provisions of this Plan, and of the Collective Labour Agreement. The arbitrator, shall have no authority to add to or subtract any provision of this Plan or to waive or fail to apply any deductions or any requirement of eligibility for benefit under this Plan. The decision of the arbitrator on any grievance properly referred shall be binding upon the Company, the Union, the employee, applicant for pension or retiree, concerned therein If any dispute shall arise between the Company and any employee, applicant for a disability pension who is represented by the Union or retiree on disability retirement as to whether such person is or continues to be totally and permanently disabled as defined in the Plan, such dispute shall be resolved as follows: The employee, applicant or retiree shall be examined by a physician appointed for the purpose by the Company and a physician appointed for that purpose by the Union, if they shall disagree concerning total and permanent disability the questions shall be submitted to a third physician selected by the said two (2) physicians. The opinion of the third physician, after examination of the employee, applicant or retiree, and consultation with the other two physicians shall decide such question and such decision shall be binding upon the Company, the Union, the employee, applicant or retiree concerned therein. Any physician appointed or selected as provided for herein must be legally licensed to practice medicine. The Union and the Company shall pay the fees and expenses of their appointees and the fees and expenses of the third physician shall be shared equally by the Company and the Union. If the dispute is as to whether or when an employee had become totally and permanently disabled and the decision made pursuant to this Section is that the employee is totally and permanently disabled, he is and shall be deemed to have become totally and permanently disabled as to the commencement of continuous total disability. 61

64 7.06 The Union shall be furnished with such pertinent information as it may request from time to time concerning the operation and administration of the Pension Benefit Plant in so far as it affects employees, applicants for pension who are represented by the Union and retirees. The Company agrees to supply each member of the Plan with a copy of the "Pensions Benefit Plan", as well as any amendments thereto Notwithstanding anything to the contrary contained elsewhere in this Plant an employee who has been in the service of the Company for a continuous period of ten (1 0) years and who has attained age forty-five (45) is entitled upon termination of his employment prior to his attaining retirement age to a deferred life annuity commencing with the month following. The monthly amount of the deferred life annuity is according to the schedule set out below for each year or partial thereof of credited service and provides for it being payable for a sixty month term certain and for the retiree's remaining lifetimet if anyt but reduction there from provided in Section 2.01 ARTICLE II. When seniority, with respect to eligibility under this Plan, differs with the Pension Benefits Actt Revised Statutes of Ontariot such Act shall govern. $24.00 effective Aprill, 2011 The deferred life annuity is for the employee's own use and benefitt and does not confer upon the employeet and personal representativet or dependentt or any other persont any right or interest in the deferred life annuity capable of being assigned or otherwise alienated. The deferred life annuity is not capable of surrender or commutation and does not confer upon the employee and personal representative or dependentt or any other person, any right or interest in the deferred life annuity capable of being surrendered or commutated The provisions of this ARTICLE Yilt so far as they relate to the Pension Plant arc and shall be deemed a part of the Pension Benefit Plan. ARTICLE VIII TERMS OF AGREEMENT 8.0 I As promptly as possible after execution of this Plan by the Company t the Company shall submit it to the relevant government tax and other relevant authorities for the purpose of obtaining their approval of it. If on the effective date of the Pension Benefit Plant the Company has not all approvals which it may deem necessary to establish that it is entitled to deduct the amount of its contribution to the Pension Plan as an expense under the provisions of the Income Tax Act, or any other applicable tax laws, or to qualify under any other applicable lawt as now in effect or as hereafter amended or adopted, the Plan shall not become effective. If the requirement of such authorities shall necessitate any 62

65 modification or changes herein, the Company will promptly notify the Union and the parties will meet within ten (I 0) days thereafter for the purpose of negotiations regarding such modifications or changes In the event of withdrawal of the approval, as defined in Section 8.01 hereof, by the relevant government authorities at any time during the term of this Plan, this Plan shall terminate on the effective date of such withdrawal or upon the expiration of thirty (30) days after the Company shall first have been advised by such authorities of such withdrawal of approval, whichever is later. During such thirty (30) day period, the parties will meet for the purpose of negotiating any modification or change required in order to obtain such approval of such authorities; provided, however, that notwithstanding the other provision of this ARTICLE, until reinstatement of such approval, the Company shall not be required to make any contributions to the pension fund, which it is not entitled to deduct as an expense before taxes under the provision of the Income Tax Act and any other applicable tax laws as now in effect or hereafter amended or adopted If at any time during the term of this Plan it shall be necessary or appropriate to make any revision of this Plan in order to obtain or retain the approval defined in Section 8.01 hereof, by the relevant authorities, the Company may make such revision, retroactively or otherwise, with the consent of the Union. The making of such revision shall be the subject of immediate negotiations between the Company and the Union and in such negotiations the Company and the Union shall recognize that the Collective Labour Agreement then in effect was executed in the expectation that the Pension Benefit Plan, or one with substantially equivalent benefits would be, and remain in effect during the term of this Plan and of any renewal thereof, theretofore made This Plan may be appropriately modified or terminated in the event of the enactment of Federal, Provincial or Municipal Governmental legislation affecting: (a) A contributory (Company or employee) pension plan applicable to employees or (b) A change, modification or supplement to the statutory benefit that results in a reduction of the aggregate ofbenefits to employees. In the event of enactment of such legislation, should the parties be unable to agree upon appropriate modification of this Plan, either party may by thirty (30) days' notice, effective no later than thirty (30) days after such legislation has been officially proclaimed, terminate this Plan In the event of refusal by the relevant government authorities to approve this Pension Benefit Plan or in the event of the government authorities refusing to approve the Pension Benefit as defined in Section 8.0 I hereof, or of their withdrawal after date of approval thereof, previously given in the event that this Plan is terminated by either party pursuant to the provision of Section 8.04 either the Union or the Company may apply to the Ontario Labour Relations Board for permission to terminate any Collective Labour Agreement then in effect and the other party shall join in such application. In the event of such termination 63

66 the provision of the Collective Labour Agreement shall continue to operate in the manner as provided in the Ontario Labour Relations Act. If subsequent to notice of termination of such Collective Labour Agreement, the parties settle any difference between them and this Plan is reinstated, or a successor Plan is made then such Collective Labour Agreement if terminated shall be reinstated to continue to full force until subsequently terminated according to its provision as contained therein The Plan constitutes a full settlement of all retirement, pension demands of the Union for its duration, and during the term hereof, or of any renewal hereof, neither the Union nor its representative shall: (1) make any demand that this Plan be changed in any respect or terminated, or that a new Pension Benefit Plan be established for the employees or that the Company contribute, or pay any greater amount for pensions for the employees that it is required to pay under the provision ofsection 6.01 hereof, or (2) engage in, or continue to engage in, or in any manner encourage or sanction any strike or other action which will interfere with work or production at the plants of the Company, for the purpose of securing any such change, increase or termination; and except during the last forty-five (45) days of the term of this Plan, or of any renewal thereof, the Company shall not have any obligation to negotiate or bargain with the Union with respect to any of the matters referred to in (1) of this Section Subject to the foregoing, this Plan which supersedes and replaces all previous pension plans covering the same operations shall continue in full force and effect in respect to all benefits at least until the 31st day of March 2015, and shall continue in effect as part of the Collective Labour Agreement as indicated in Section of the C.L.A. If the Pension Benefit Plan is discontinued, it shall be wound up completely in accordance with the Pension Benefits Act, Revised Statutes of Ontario, Termination of the Collective Labour Agreement shall not have the effect of automatically discontinuing the Pension Benefit Plan in so far as it affects the pensions of those retiring before the termination date, and no pension granted prior to such termination shall be reduced, suspended or discontinued, except as specifically provided in the Pension Benefit Plan. 64