A G R E E M E N T BETWEEN

Transcription

1 A G R E E M E N T BETWEEN RAMPART STEEL LTD. EDMONTON, ALBERTA And SHOPMEN S LOCAL UNION NO. 805 of the INTERNATIONAL ASSOCIATION OF BRIDGE, STRUCTURAL, ORNAMENTAL and REINFORCING IRON WORKERS (affiliated with the AFL-CIO-CLC) June 01, 2012 to May 31, 2014

2 SECTION TABLE OF CONTENTS Page No. Preamble and Purpose of Agreement... 2 Section 1 Bargaining Unit - Maintenance Work... 3 Section 2 International Not a Party to Agreement..4 Section 3 Union Recognition... 4 Section 4 Union Membership... 5 Section 5 Check-Off of Union Dues - Initiation and/or Reinstatement Fees... 6 Section 6 Management Prerogatives - Shop Rules... 7 Section 7 Hours of Work...8,9,10 Section 8 Overtime 11 Section 9 Holidays - Holiday Pay...11,12 Section 10 Classifications & Rates of Pay 13,14,15 Section 11 Paydays - Piece Work Prohibited Section 12 Reporting Pay Section 13 Vacations.17,18 Section 14 Welfare Benefits 19,20,21,22,23 Section 15 Erection and Field Fabrication.. 24 Section 16 Apprentices 24 Section 17 Seniority.. 25,26,27 Section 18 Leaves of Absence 28,29 Section 19 Grievance Procedure..29,30 Section 20 Arbitration 31,32 Section 21 Strikes and Lockouts Section 22 Plant Visitation Section 23 Bulletin Boards Section 24 Safety and Health 34,35 Section 25 Saving Clause.. 35 Section 26 Interim Amendment Section 27 Term of Agreement LETTER OF UNDERSTANDING ( Parity). 37 LETTER OF UNDERSTANDING ( Restructuring).. 38 LETTER OF UNDERSTANDING (IMPACT ). 39 Iron Workers Standard of Excellence

3 AGREEMENT This Agreement, executed and effective as of the 1st day of June, 2012 by and between Rampart Steel Ltd. hereinafter referred to as the "Company" and Shopmen's Local Union No. 805 of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers (affiliated with the AFL-CIO-CLC) hereinafter referred to as the "Union". PURPOSE OF AGREEMENT WHEREAS, this Agreement is entered into by collective bargaining to prevent strikes and lockouts and to facilitate the peaceful adjustment of grievances and disputes between the Company and its employees, to prevent waste, unnecessary and avoidable delays and expense, and for the purpose of at all times assisting the Company, to serve sufficient skilled workmen, and insofar as possible, provide for Labour's continuous employment to be in accordance with the conditions and wages hereinafter set forth; also that stable conditions may prevail in the metal fabricating industry that fabricating costs may be as low as possible, consistent with fair wages and conditions, and for the further purpose of establishing the necessary procedure by which these objectives may be accomplished. Now, there for in consideration of the mutual covenants and agreements herein set forth and the mutual benefits likely to be obtained by harmonious relations between the Company and the Union, the parties hereto mutually covenant and agree as follows: - 2 -

4 BARGAINING UNIT - MAINTENANCE WORK SECTION 1. (A) This Agreement shall be applicable to all of the Company's employees (save and except those specifically excluded below) engaged in the fabrication of iron, steel and metal products and maintenance work in or about the Company's shop or shops located at Edmonton, Alberta and vicinity, and to work done by such employees. Production work and maintenance work, shall not be performed by supervisors or other persons who are excluded from the bargaining unit as set forth and described in this Section 1, except for the purpose of instructing employees, or demonstrating proper methods and procedures of performing work operations, or in cases of emergency. This Agreement is not intended and shall not be construed to extend to office of clerical employees, watchmen, guard, or foremen and persons above the rank of foremen, nor to erection, installation or construction work, or to employees engaged in such work. (B) "Maintenance" as used herein is intended to cover the ordinary upkeep and repair of the Company's machinery, plant and property, but is not intended to include major extensions or major remodeling or repairs that employees in the Union are not qualified to perform. (C) All reference to employees in this Agreement designates both sexes and whenever the male gender is used, it shall be construed to include both male and female employees

5 INTERNATIONAL NOT A PARTY TO AGREEMENT SECTION 2. The International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, the parent body of the Union (hereinafter referred to as the "International") is not a party to this Agreement and assumes no responsibility or liability under this Agreement and similarly shall have no right of redress there under against the Company for the breach there. UNION RECOGNITION SECTION 3. (A) The Company recognizes the Union as the exclusive representative and agent of all the Company's employees (save and except those employees specifically excluded in Section 1 hereof) for the purpose of collective bargaining with respect to rates of pay, wages, hours of employment and other conditions of employment. (B) The Company agrees that no fabrication of miscellaneous or structural steel will be subcontracted to any company that is not signatory to a Union Agreement representing a qualified bargaining unit, unless a shortage of qualified manpower exists

6 UNION MEMBERSHIP SECTION 4. (A) Each of the Company's employees to whom this Agreement is applicable, as defined in Section 1 hereof, shall, as a condition of employment, be or become a member of the Union not later than the thirtieth (30th) day following the effective date of this Agreement, or not later than the thirtieth (30th) day following the beginning of his employment, whichever is the later. Each employee shall, as condition of continued employment, remain a member of the Union in good standing in accordance with its Constitution and By-Laws. (B) Upon receipt of a written notice from the Union that an employee has not acquired membership in the Union, or has not maintained his membership in good standing therein as provided for in this Section, the Company shall discharge such employee and such employee shall not be re-employed during the life of this Agreement unless or until he complies with the provisions of this Section. (C) The Company shall give each newly-hired employee and each such person newly employed after being laid off, or otherwise absent from work more than fifteen (15) days, a form in duplicate, showing the class of work for which such person has been employed, his straighttime hourly rate and Social Insurance Number. Each such new or former employee shall submit one (1) copy of the above-mentioned form to the Chief Shop Steward and the Shop Foreman for the Company. (D) When new employee(s) are required, the Company will notify the Union of the number and classification(s) of the employee(s) required and the Company shall be able to select those it considers competent. In the event that the Union cannot supply such competent member(s), the Company shall have the right to employ any other acceptable competent person

7 CHECK-OFF OF UNION DUES - INITIATION AND/OR REINSTATEMENT FEES SECTION 5. (A) It shall be mandatory that each employee of the Company who is a member of the Union sign and deliver to the Company an authorization directing the Company to withhold from such employee's earnings, Union Dues, Initiation and/or Reinstatement Fees hereinafter provided for in this Section. Upon receipt thereof, the Company shall deduct from such employee's earnings, on the first payday in each month, the amount owed to the Union by each such employee for Union Dues, Initiation and/or Reinstatement Fees, however, should any such employee have no earnings due to him on the first payday in any month or should such employee's earnings be less than the amount such employee owes the Union for dues, then, in that event, the deductions shall be made from the employee's earnings on the next succeeding payday on which his earnings are sufficient to cover the amount of dues owed to the Union by such employee. By the twentysixth (26th) day of each month, the Company shall mail to the Financial Secretary of the Union, a cheque, made payable to the Union for the amount of Union Dues, Initiation and/or Reinstatement Fees the Company has withheld during such month, which shall be accompanied by a list, in duplicate, containing the names of the employees and the amount deducted from such employee's earnings. Upon receipt of such cheque and list, said Financial Secretary of the Union shall sign one copy of such list, acknowledging receipt thereof, and promptly return such signed list to the Company. The Union will notify the Company in writing, as to the amount of the monthly Union Dues, Initiation and/or Reinstatement Fees as provided for in the Local Union By-Laws. (B) It is expressly understood and agreed that upon receipt of proper proof, the Union will refund to the Company, or to the employee involved, Union Dues, Initiation and/or Reinstatement Fees erroneously withheld from an employee's earnings by the Company and paid to the Union

8 MANAGEMENT PREROGATIVES - SHOP RULES SECTION 6. (A) The Management of the Company's plant and direction of its working forces, including the right to establish new jobs, abolish or change existing jobs, increase or decrease the number of jobs, change materials, processes, products, equipment and operations shall be vested exclusively in the Company. Subject to the provisions of this Agreement, the Company shall have the right to schedule and assign work to be performed and the right to hire or re-hire employees, promote, recall employees who are laid off, demote, suspend, discipline or discharge for proper cause, transfer or lay off employees because of lack of work or other legitimate reasons, it being understood, however, the Company shall not discipline or discharge an employee except for proper cause or otherwise improperly discriminate against an employee. (B) The Company shall have the right to establish, maintain and enforce reasonable rules and regulations to assure orderly plant operations, it being understood and agreed that such rules and regulations shall not be inconsistent or in conflict with the provisions of this Agreement. The Company shall maintain on its bulletin boards and furnish the Union with a written or printed copy of all such rules and regulations, as well as new rules and regulations promulgated by the Company. Changes in existing rules and regulations shall not become effective until five (5) regular workdays after copies thereof have been furnished to the Union and posted on the Company's bulletin boards. The Company shall furnish to the Union office a copy of all such printed or written matter directed at employees covered by this Agreement. The Company shall not take disciplinary action without first warning the employee unless the circumstances justify immediate suspension or discharge. Warnings shall be given in writing in the presence of a Union Committeeman or Steward

9 HOURS OF WORK SECTION 7. (A) When only one shift is employed, a regular workday shall consist of eight (8) consecutive hours, exclusive of the thirty (30) minute lunch period, with pay for eight (8) hours, between 7:30 a.m. and 4:00 p.m., and the regular workweek shall consist of forty (40) hours. (B) When two shifts are employed, a regular workday for the first shift shall consist of eight (8) consecutive hours, exclusive of the thirty (30) minute lunch period with pay for eight (8) hours, between 7:30 a.m. and 4:00 p.m. and the regular workweek for the first shift shall consist of forty (40) hours; a regular workday for the second shift shall consist of ten(10) consecutive hours, exclusive of the thirty (30) minute lunch period, with pay for ten (10) hours, between 4:00 p.m. and 2:30 a.m. and the regular workweek for the second shift shall consist of forty (40) hours. (C) Should the Company institute a third shift, the hours of work will be negotiated between the Company and the Union before the commencement of the said third shift. (D) The second and third shifts, respectively, (if any) shall immediately follow the preceding shift. (E) Monday through Friday shall constitute the regular workweek for day shift Monday through Thursday shall constitute the regular workweek for the second shift. (F) The starting time and quitting time of the various shifts, as herein provided for, may be changed from time to time by mutual agreement between the Company and the Union. (G) The foregoing provisions of this Section describe the regular workday and regular workweek and are not intended to be construed as a guarantee of hours of work per day or per week, or days of work per week. The regular scheduled workweek for each employee shall begin with the starting of his regularly scheduled shift on Monday of each week as hereinabove set forth

10 (Section 7. cont'd) (H) The foregoing provisions of this Section are not intended and shall not be construed as preventing overtime work, provided however, the Company agrees that while employees who have acquired seniority status of six (6) months or more are laid off, there will not be any overtime work performed on any work operation such employees are capable of performing, except in the case of emergency and then only for a period of not more than three (3) days. There shall be no discrimination in the assignment of overtime work and overtime shall, insofar as practical, be allocated equitably among the employees qualified to perform the work operation in question: it being understood, however, on work operations where the distribution of overtime, as hereinabove provided, would not be practicable, the employees who regularly perform such work operations during the regular work hours shall be given preference when overtime work is required on such operations. When, in the opinion of the Company, it is necessary to work overtime, employees entitled to such work, as hereinabove provided, shall be given notice thereof the previous workday, and, in the event such notice is given the employee(s) shall be expected to work a reasonable amount of overtime except for good and sufficient cause. Employees shall not be compelled to but, if required to do so by the Company, may at their own discretion work overtime. (I) There shall be a ten (10) minute rest period during the first four (4) hours of each shift, a further ten (10) minute rest period during the last four (4) hours of each shift and an additional ten (10) minute rest period immediately prior to performing overtime work in excess of the regular hours on any shift, a ten (10) minute rest period every two (2) hours thereafter when further overtime is to be worked following such rest period(s). During such rest period(s), each employee shall be paid his applicable hourly rate, and the employee(s) may, if they desire to do so, obtain and consume refreshments and/or food. (J) In the event an employee(s) is required to work in excess of ten (10) hours in any day and is not so notified by the Company as provided for in Subsection (H) hereinabove, the Company agrees to provide such employee with an adequate meal to the value not to exceed ten dollars ($10.00) selected by the employee from any one takeout service in the vicinity, at the Company's expense. The employee will be given a thirty (30) minute lunch period, paid for at the employee's applicable rate of overtime, to partake of such meal

11 (Section 7. cont'd) The lunch period provided for in the subsection shall replace the ten (10) minute rest period taken immediately prior to performing work in excess of their regular hours as provided for in Section (I) hereinabove or at such time as may be mutually agreed upon between the Company and the Union. (K) When two or more shifts are required, such shifts shall be rotated every second Monday. All employees on the work operations affected by such shifts shall, insofar as practical be rotated equally on the second or third shifts provided that an employee, if he elects to do so, may remain on such second or third shift as long as work is available on such shift unless he advises the Company that he wishes to return to regular shift rotation by giving the Company at least one (1) week's notice in writing when such employee's shift is to be changed, except as hereinabove provided for in this Subsection. No employee shall be required to work on another shift unless he has received such notice. No employee's total weekly earnings shall be reduced as a result of shift changes made by the Company. (L) Wash-up Period: The commencement of "Wash-up Periods" will be indicated by an appropriate signal. No employee shall cease his work until such signal if given. Any employee downing his tools, stopping his machine or leaving his work place prior to the giving of such signal will be subject to discipline. Duration of "Wash-up Periods" shall be five (5) minutes prior to the quitting time of each shift. (M) The Company agrees that it will not institute a short workday or workweek for the purpose of avoiding layoffs without prior agreement with the Union. Notwithstanding the foregoing, it is understood that this shall not prevent the Company from laying off an employee, or employees, for lack of work or other legitimate reasons in accordance with the provisions of this Agreement. (N) CANADIAN WELDING BUREAU TEST - if an employee fails his C.W.B. test more than twice, the third retest will be done on the employees own time

12 OVERTIME SECTION 8. (A) All work done by an employee before or after the regular work hours on any shift and all work done in excess of the regular workday for any shift Monday through Friday inclusive, shall be considered overtime work and shall be paid for at one and one-half (1 1/2) times such employee's current regular straight-time hourly rate (B) All work done by any employee on Saturday shall be considered overtime work and shall be paid for at one and one-half (1 ½) times such employees current regular straight-time hourly rate for the first eight (8) hours, all subsequent hours to be paid at two (2) times the employees straight-time hourly rate. (C) All work done by an employee on Sunday shall be considered overtime work and shall be paid for at two (2) times such employee s current regular straight-time hourly rate. SECTION 9. HOLIDAYS - HOLIDAY PAY (A) For the purpose of this Agreement, the following shall be recognized as holidays: New Year's Day, Good Friday, Victoria Day, Family Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day and Boxing Day, or days observed as such, also the last four (4) regular work hours for the day shift and the last five (5) regular work hours for the second shift of the last regular workday prior to Christmas Day. Should any of the foregoing holidays occur on Saturday or Sunday, the following Monday shall be recognized and observed as the holiday in question, provided however, when Christmas Day occurs on Saturday or Sunday, Boxing Day shall be observed on the following Tuesday. All work done on any of the foregoing holidays, or days observed as such, shall be paid for at the rate of double time; and subject to the provisions hereinafter set forth in subsection (B), each employee shall in addition to double time pay for work performed, be paid eight (8) hours straight-time holiday pay for each such holiday. No work shall be done on Labour Day except where absolutely necessary to avoid hazard to life or property

13 (B) Each employee shall be paid their regular straight-time holiday pay for each of the holidays mentioned in Subsection (A) hereinabove. (C) In order to be eligible to receive pay for any of the above-mentioned holidays, or days observed as such, not worked, as provided for in Subsection (B) above, an employee must have been employed by the Company thirty (30) calendar days or more prior to the occurrence or observance of the holiday in question, and an employee must have worked a regular shift for the Company on the last regular workday immediately preceding, and on the first regular workday immediately following, the holiday in question, unless his failure to work for the Company on such day or days was due to absence because of being on paid vacation, as hereinafter provided for in this Agreement or because of confirmed illness or injury that occurred or commenced on the holiday, the day immediately following the holiday in question, or because of a layoff by the Company that commenced not more than thirty (30) days immediately preceding the holiday in question, or because of death in the immediate family: (mother, father, spouse, child, brother, sister, grandparent, mother-in-law, father-in-law, brother-in-law, or sister-in-law) of an employee, or for similar good cause authorized, directed or approved by the Company

14 CLASSIFICATIONS & RATES OF PAY SECTION 10. Each employee shall be classified in the hereinafter mentioned classification, which covers the work condition he performs for the Company. Wage increases as follows: June 1, Parity; June 1, %. Effective as of the dates below, and for the remaining term of this Agreement, each employee shall be paid not less than the minimum hourly wage rate hereinafter set forth in column A, B CLASSIFICATION COLUMN 'A' June 1/12 COLUMN 'B' June 1/13 3% Group 1 Crew Leader/Lead Hand 1 $35.65 $36.72 Group 2 Checker,/Lead Hand 2, Template Man $33.76 $34.77 Group 3 Duel Ticketed Fitter/Welder Maintenance Man 1 (The standard of this group is determined by Company) $33.50 $33.45 $34.51 $34.45 Group 4 Journeyman Fitter I (The standard of this group is determined by Company) $33.45 $34.45 Group 5 Journeyman Welder 1 (The standard of this group is determined by Company) $32.10 $33.06 Group 6 Journeyman Fitter, Journeyman Welder $30.35 $31.26 Group 7 CNC Operator 1 CNC Operator 2 CNC Operator 3 CNC Operator 4 $30.35 $27.35 $24.30 $21.25 $31.26 $28.17 $25.03 $21.89 Group 8 Machine Burner (non - CNC Machine), Machine Operator (non- CNC machine), Spray Painter $27.35 $28.17 Yardman $25.00 $25.75 Group 9 Truck Driver $24.50 $25.24 Group 10 Trades Helper (1) After 12 months as a Trades Helper (2) Trades Helper (2) After 12 months as a Trades Helper Trades Helper $24.50 $22.00 $20.50 $25.24 $22.66 $21.12 Group 11 General Helper After six (6) Months First six (6) Months $18.60 $17.15 $19.16 $

15 (Section 10. cont'd) (B) The minimum rate of pay for employees working on the second shift shall be at least one dollar and fifty-cents ($1.50) per hour above their regular hourly rate, and the minimum rate of pay for employees working on the third shift shall be at least one dollar and fifty-cents ($1.50) per hour above their regular hourly rate. (C) It is recognized that from time to time it may be necessary for the Company to temporarily assign employees to a work operation other than that on which they are normally employed. Therefore, the Company may, in accordance with the following provisions, temporarily assign any employee to perform any work operation. However, if any employee is assigned in any one day for one (1) hour or more to a work operation for which the minimum wage rate herein specified is higher than his regular straight-time hourly wage rate, then, in that event such employee shall be paid not less than the minimum wage rate herein specified for such work operation for the entire period for such assignment. Notwithstanding the foregoing, it is understood and agreed that should temporary assignments to a higher rated work operation exceed eighty (80) clock hours in a ten (10) week period, then, in that event, such assignment(s) shall be made in accordance with the seniority provisions hereinafter set forth. The regular straight-time hourly wage rate of an employee who is temporarily assigned to a work operation for which the minimum wage rate, shall not be reduced, nor shall there be any reduction in the regular straighttime hourly wage rate of any employees for the duration of this Agreement except as a result of the application in the Seniority provisions hereinafter set forth, even though the employee may be receiving more than the minimum rate herein specified for the classification in which he is included or classified. (D) The rates of pay set forth in Subsection "A" of this section are minimum straighttime hourly wage rates, and nothing contained herein shall be construed as prohibiting or requiring the Company to grant individual employees, for length of service or other reasons, a wage increase which would result in such employee's regular straight-time hourly rate being in excess of the minimum wage rate herein specified for the work operation he performs; however, in the event any such wage increases are granted, the Company shall notify the Union, in writing, of the name(s) of the employee(s) who are granted an increase, the effective date thereof, and reasons therefore

16 (Section 10. cont'd) (E) Should it be determined that there exists work operations in the Company's plant for which the classifications set forth in Subsection (A) of this Section would not be applicable, or should the Company undertake work operations for which such classifications are not applicable, in either event, classifications for such work operations and minimum wage rates therefore shall be established through prompt negotiations between the Company and the Union; and when such classifications and minimum wage rates have been determined (it being understood such determination shall be made within thirty (30) days after the commencement of such work operations) the provisions thereof shall become effective as of the time such work operations commence, or retroactive thereto. PAYDAYS - PIECE WORK PROHIBITED SECTION 11. (A) Employees shall be paid on a regular designated payday every two (2) weeks by direct deposit into employee s bank account. When an employee is laid off or discharged, he shall be paid off immediately by cheque. (B) There shall be no piece or contract work done by the employees and all work performed shall be paid for on an hourly basis. (C) Retroactive pay, if any is forthcoming, shall be paid out to all employees entitled to same within forty-five (45) days after the Union has notified the Company that the terms and conditions of the new agreement have been accepted by the majority of the membership affected. Such pay shall also be applicable to any employee(s) employed by the Company on the effective date, but who may have left prior to ratification, for all hours worked in that period

17 REPORTING PAY SECTION 12. (A) Any employee who is scheduled or required to and does report for work on any day and is not put to work for at least four (4) hours shall be paid at the applicable rate for four (4) hours actual work on that day, except where failure to so put such employee to work is occasioned by non-operation of the plant, or a substantial part thereof, as a result of fire, Act of God, failure of power or major break-down of equipment. (B) Any employee who, by order of the Company, reports for work during the twelve (12) consecutive hours immediately following the regular quitting time of his regular shift shall, for all time worked during such twelve (12) hour period, be paid the applicable overtime rate therefore, or such employee shall receive four (4) hours pay at the applicable overtime rate, whichever is greater. (C) Any employee injured at the Company's plant, who is sent to a doctor and returns to work during his regular or scheduled overtime working hours the same day, shall receive the applicable hourly rate(s) for such time thereby lost on such day. Should such employee be admitted to a hospital or be instructed by the Company or the doctor to refrain from performing further work on the day such employee is injured; in the event such employee was injured during such employee's regular working hours, such employee shall receive the applicable hourly rate for such regular time thereby lost on such day; in the event such employee was injured during such employee's scheduled overtime working hours, such employee shall receive the applicable hourly rate for such scheduled overtime thereby lost on such day. If such employee shall, on any subsequent day on which he performs work for the Company, go to the doctor for treatment of such injury during his regular working hours, he shall receive the applicable hourly rate for such regular time thereby lost on such day. Confirmation of such subsequent visits to the doctor may be required by the Company

18 SECTION 13. VACATIONS (A) Each of the Company's employees to whom this Agreement is applicable shall, in each year this Agreement remains in effect, be granted a vacation with pay in accordance with the following provisions: (B) Employees with less than one (1) year of service with the Company, as of May 31st in any year, shall receive fourteen (14) consecutive days vacation, commencing on a Monday, and vacation pay equal to four (4) percent of their total earnings for the twelve (12) month period next preceding June 1st of the year then current. Employees with one (1) year but less than three (3) years of service with the Company, as of May 31st in any year, shall receive fourteen (14) consecutive days vacation, commencing on a Monday, and vacation pay equal to five (5%) percent of their total earnings for the twelve (12) month period next preceding June 1st of the year then current. Employees with three (3) years but less than seven (7) years of service with the Company, as of May 31st in any year, shall receive twenty-one (21) consecutive days vacation, commencing on a Monday, and vacation pay equal to seven (7%) percent of their total earnings for the twelve (12) month period next preceding June 1st of the year then current. Employees with seven (7) years but less than ten (10 ) years of service with the Company, as of May 31st in any year, shall receive twenty-eight (28) consecutive days vacation, commencing on a Monday and vacation pay equal to nine (9%) percent of their total earnings for the twelve (12) month period preceding June 1st of the year then current. Employees with ten (10) or more years of service with the Company, as of May 31st in any year, shall receive twenty-eight (28) consecutive days vacation, commencing on a Monday and vacation pay equal to ten (10%) percent of their total earnings for the twelve (12) month period preceding June 1st of the year then current

19 (Section 13. cont'd) (C) In computing an employee's "total earnings" the vacation pay earned by any employee in the previous year and all overtime earnings, shift differential, and holiday pay paid by the Company for the twelve (12) month period next preceding June 1st of the year then current shall be included in such "total earnings". (D) Employees shall be paid their vacation pay at least three (3) regular workdays prior to the beginning of their vacation period, however, in the event an employee's employment with the Company should be terminated for reasons prior to his vacation period, the said employee(s) shall be paid their accrued vacation pay computed in accordance with their length of service as hereinabove provided to the date of termination. (E) Vacations shall not be accumulative but must be granted and taken in the calendar year in which they are due. Vacations shall be granted at a time most desired by the employees in question with due regard to seniority, provided, however, that the final allocation of vacation periods for the individual employee shall rest exclusively with the Company in order to ensure continuity of plant operations. Each employee shall notify the Company by May 15th of each year of the vacation period most desired; the Company shall notify each employee by May 31st of each year the vacation period allotted to such employee. If an employee is absent on the workday before such employee's vacation would have commenced because of confirmed illness or injury, he may choose another vacation period

20 SECTION 14. WELFARE BENEFITS (A) The Company agrees to obtain from an insurance company authorized to operate in the Province of Alberta, Group Insurance Protection and Alberta Health Care for each employee covered by this Agreement (hereinafter referred to as "Benefit Carriers") which will provide each employee with the benefits hereinafter set forth in the schedule of "Employee Benefits" in Subsection (C) hereof. (B) The Company also agrees to obtain for each of its employee's dependents (wife and unmarried children under twenty-one (21) years of age or twenty-five (25) years of age if a student in full time attendance at high school or any accredited institute, college or university) the benefits hereinafter set forth in the schedule of "Dependents Benefits". Such benefits shall be obtained from the Benefit Carriers providing the benefits referred to in Subsection (A) above. (C) EMPLOYEE BENEFITS COVERAGE AMOUNT EXPLANATION 1. Life Insurance $50,000. Payable upon death from any cause. 2. (A) Accidental Death (B) Loss: Both hands, both feet or sight of both eyes, or any two of these members $50,000. $50,000. Covers occupational as well as non-occupational accidents only. Covers occupational as well as non-occupational accidents. (C) Loss: One hand or one foot or sight of one eye. $25,000. Covers non-occupational accidents only. 3. Long Term Disability 65% of basic monthly earnings to maximum of $2,500. Long term disability benefits begin after 26 weeks and continue until the employee either recovers or reaches 65 years of age. Covers sickness or nonoccupational accidents only. In calculating long term disability benefits, benefits from any other group insurance plan will be taken into account. 4. Weekly Sick or Accident Benefits 5. Dental Plan 66 % of basic weekly earnings to a maximum of $600./week. Full cost in accordance with the latest fee schedule of the Alberta Dental Association. Covers sickness or non-occupational accidents only. Benefits begin with the first day of accident and the third day of sickness. Limited to 26 weeks of disability. 100% basic dental coverage. 50% major dental coverage. Maximum of $1,500./person/year. Orthodontic Services at 50% - $2000/year maximum (dependants under age 20 only)

21 6. Medical and Surgical Benefits. As provided for in the Alberta Health Care Insurance Plan. 7. Vision Care $ Every 2 Years, per family member 8. Hospital and "Other Services Benefits" As provided for in the Group Insurance Plan Book. DEPENDENTS BENEFITS 1. Life Insurance Spouse $10,000. Payable upon death from any cause. 2. Life Insurance Dependent $5,000. Payable upon death from any cause. 3. Dental Plan Full cost in accordance with the latest fee schedule of the Alberta Dental Association. 4. Medical and Surgical Benefits 5. Hospital and "Other Services Benefits" 6. Vision Care $ % basic dental coverage. 50% major dental coverage. Maximum of $1,500/person/year. Orthodontic Services at 50% - $2000/year maximum (dependants under age 20 only) As provided for in the Alberta Health Care Insurance Plan. As provided for in the Group Insurance Plan Book. Every 2 Years, per family member (D) Each employee and each employee's eligible dependents, if any, shall be fully covered by the benefits hereinabove set forth on the day such employee becomes eligible (the first day of the calendar month following being employed 90 days) and shall continue to be fully covered while in the employ of the company. In the event of any employee covered by the benefits set forth in this Section 14 being off work because of illness, or injury, such benefits, including dependents benefits, will be continued in full force and effect for the duration of such illness or injury as long as such employee retains his seniority and maintains his membership in the Union as provided for elsewhere in this Agreement. In the event of an employee being laid off, the benefits provided for in this Section 14, including dependents' benefits; shall be continued for one (1) calendar month following the month in which the layoff occurs unless the employee obtains other employment, is recalled or does not maintain his membership with the Union as provided for elsewhere in this Agreement. In the event of an employee previously covered by the benefits provided for in this Section being laid off and subsequently recalled to work within one (1) year from the date of such layoff, such employee shall be fully covered by the benefits, on the first day of the calendar month following such employee's return to work

22 (E) The Company agrees to assist its employees in filing all claims for benefits provided for in this Section and shall act as the employee's agent without cost to the employees, with respect to obtaining prompt and proper settlements of all claims. (F) Each employee shall be furnished by the Company with a copy of a booklet or leaflet containing the benefits hereinabove set forth. (G) The benefits provided for in this Section (14) shall be paid for on the following basis: The Company shall pay two thirds (2/3) of the cost and the employee(s) shall pay one third (1/3) of the cost. When an employee is sick or on compensation he must maintain his 1/3 of the cost of benefits or his benefits will be terminated after 3 calendar months in arrears. (H) Effective June 1, 2012, the Company will contribute one dollar and twenty-five cents ($1.25) per hour. Effective June 1, 2013, the Company will contribute one dollar and thirty five cents ($1.35) per hour worked only if employee contributed at least seventy-five cents ($0.75) per hour worked. This Group Plan, which will be selected by mutual consent, shall be administered by Investors Group, #100, th Street, Edmonton, Alberta T5K 2L6 (hereafter called the Administrator), who shall receive contributions as noted above and who shall credit the amounts received to the individual accounts established for the employees. Each employee will be responsible for directing the Administrator to invest contributions made into his choice of the investment options available. Administration fees charged by the Administrator will be paid directly from the employee's account or by such other arrangement as may be acceptable to the Administrator. Pension benefits paid out for each employee will be determined solely by that employee, based on the balance of his RRSP account at the time of retirement. The Company's liability to the Group RRSP Plan shall be limited to remittance of the above noted contributions in the manner and at the times set out herein as per payment of wages. The Union will be responsible for any auditing it feels is necessary

23 If an employee withdraws from the RRSP before retirement, except for a government approved plan (i.e. RRSP Mortgage Program) the Company will no longer contribute its portion of the RRSP for that employee. Pension Trust Fund: The company, contributing member of the Shopmen s Local 805 Pension Fund, in accordance to the terms and provisions set forth for the Shopmen s Local 805 Pension Fund. The Company will no longer offer a Group RRSP with exception for those employees who qualify to opt out of the Shopmen s Local 805 Pension Fund. Only those employees, whose retiring age does not make it feasible to participate in the Shopmen s Local 805 Pension Fund, will be allowed to continue contributing to the Group RRSP Plan upon approval from the Shopmen s Local 805 Pension Fund Board of Trustees. These said employees must participate in one or the other, and cannot opt out or withdraw, as long as they are employed by the Company. All other employees and any new employees, as a condition upon hiring, will become participants of the Shopmen s Local 805 Pension Trust. (1) Effective as January 1, 1981, a Pension Trust Fund was established. The Pension Trust Fund shall be known as Shopmen s Local 805 Pension Trust Fund and shall be administered by three (3) trustees appointed by the Union. (2) It is understood and agreed that pursuant to the Agreement and Declaration of Trust establishing the Shopmen s Local Union No.805 Pension Trust Fund the company agrees to make contributions to the Shopmen s Local 805 Pension Trust Fund in accordance with and to otherwise observe and be bound by the provisions of the Agreement and Declaration of Trust establishing the Shopmen s Local Pension Trust Fund as the same are from time to time amended, supplemented or replaced and to sign a Participation Agreement to that effect. 3) Effective June 1, 2012 the Company shall pay one dollar and twenty-five cents ($1.25) per hour for each hour of time paid each employee covered by this Agreement to the Shopmen's Local Union No. 805 Pension Trust Fund and each employee shall pay one dollar ($1.00) per hour for each hour of time paid him by the Company to such Pension Trust Fund

24 Effective June 1, 2013 the Company shall pay one dollar and thirty five cents ($1.35) per hour for each hour of time paid each employee covered by this Agreement to the Shopmen's Local Union No. 805 Pension Trust Fund and each employee shall pay one dollar ($1.00) per hour for each hour of time paid him by the Company to such Pension Trust Fund. Holiday Pay as provided for in Section 9 of this Agreement and overtime pay shall be considered as time paid for. Vacation time as provided for in Section 13 is included. (4) The Company shall contribute monthly to the Pension Trust Fund. The contribution payable to the Administrator designated by the Trustees is due by the fifteenth (15th) of the month following the work-month completed. The payment will include the employees' contributions, plus the Company's contribution. (5) The benefits received by employees from the Shopmen's Local Union No. 805 Pension Trust Fund shall be those benefits, which are determined from time to time by the Trustees. (6) The Trustees of the Shopmen's Local Union No. 805 Pension Trust Fund, or their authorized representatives shall have the right at all times during business hours and after notice to the Company, to examine payroll and employment records of the Company to permit the Trustees to determine whether the Company is making full payment of contributions as required by this Agreement

25 ERECTION AND FIELD FABRICATION SECTION 15. No employee covered by this Agreement will be permitted to work on field fabrication, installation or erection work coming within the jurisdiction of an outside local union of the International unless granted written permission by the Business Agent or Secretary of the outside local union in the jurisdiction in which the work is to be performed. When such written permission has been obtained, the employee concerned shall receive the hourly wage rate and working conditions applicable to such work. APPRENTICES SECTION 16. The provisions of this Agreement shall be applicable to apprentices if any are employed by the Company. However, apprentices (with the exception of Apprentice Welders covered by the provisions of the Apprenticeship Act and the Welding Act of the Province of Alberta) shall not be employed except in accordance with "Standards of Apprenticeship" approved by the Company, the Union and the International. NEW APPRENTICES: Fitter/Welder First Year: 70% of Journeyman Fitter/Welder Group 6 Second Year: 80% of Journeyman Fitter/Welder Group 6 Third Year: 90% of Journeyman Fitter/Welder Group 6 No Employee s Hourly Base Pay Rate shall be reduced as a result of being reclassified as an apprentice. However, where appropriate, the Company may freeze the Employee s Rate until it is in line with their new classification

26 SECTION 17. SENIORITY (A) The parties recognize that job opportunity and seniority should increase in proportion to length of service. It is agreed that the term "Seniority" as used herein shall have reference to an employee's right to a job based upon his length of service with the Company and his ability to efficiently fulfill the job requirements. The employee's right to a job shall include the right to a reasonable trial or training period on the job provided he has the necessary qualifications. (B) Reduction of Working Hours: In the event of a work shortage or a reduction or discontinuance of operations, the Company agrees to discuss with the Union for the purpose of consideration shortening the working hours and/or working week as an alternative to laying off employees. (C) Notice of Lay-off: In the event of lay-off due to lack of work, depressed business conditions, or because of changes of methods of operations, the employees affected except probationary employees shall be given two (2) working days notice in advance, except in case of lay-offs or shutdowns occasioned by emergency conditions, or where employees are re-called for a shorter period of time. The Union committee shall be given adequate notice of pending lay-off. (D) Probationary Period: Seniority of each employee covered by this Agreement shall be established after a probation period of sixty (60) calendar days from the date of employment and shall be calculated from date of employment. Probationary employees who have at least thirty (30) days service with the Company and who have been laid off and recalled shall be credited with past service but must work a minimum of thirty (30) days upon recall. Seniority shall be calculated from most recent hiring date. (E) Maintaining Seniority: Seniority shall be maintained and accumulated during: (1) Absence due to lay-off (2) Sickness or accident (3) Authorized leave of absence (4) Absence from employment while serving in Canada's Armed Forces during period of national emergency

27 (Section 17 - cont'd) (F) Loss of Seniority: An employee shall lose his seniority standing and his name shall be removed from all seniority listings for any one of the following reasons: (1) If the employee voluntarily quits. (2) If the employee is discharged and not re-instated under the terms of this Agreement. (3) If on lay-off for lack of work for a period of twelve (12) months. (4) If on lay-off, he fails to notify the Company in writing of a change or changes in his address last known to the Company. (5) Fails to return to work at the termination of a leave of absence or layoff except with the consent of the Company. (G) Seniority Lists: The Company shall prepare plant-wide seniority lists and present same to the Union within thirty (30) days of the signing of this Agreement. Said lists shall commence with the most seniority, carry on downwards to the employee with the least seniority and contain the following information: (a) Employee's starting date (b) Employee's classification (c) Employee's name Additional revised lists will be furnished the Union as requested from time to time, and within thirty (30) days of said request. The Union agrees not to make such request more frequently than once every two (2) months. Seniority lists shall include all bargaining unit employees on the payroll at the time that such seniority list is prepared. (H) Transfer to Jobs Outside of Bargaining Unit: Employees who are transferred from the bargaining unit to any other part of the Company's service shall hold and continue to accumulate seniority in the bargaining unit under the following conditions: (a) They have completed their probationary period as a regular employee in the bargaining unit

28 (Section 17. cont'd) (I) (b) They exercise their seniority rights upon the termination of their jobs outside the bargaining unit. (c) Their names and seniority date is included on the seniority lists. (d) In the case of an employee transferring on a permanent basis to a job outside the bargaining unit, his seniority shall be maintained for sixty (60) calendar days. (e) In the case of an employee transferring on a temporary basis to a job outside the bargaining unit, his seniority shall be maintained for such temporary period and he shall remain a member of the Union for the period of such temporary transfer. Job Posting: The following procedures will govern the assignment of employees to job vacancies: (a) All vacancies for positions of more than one month's duration and newly created positions shall be posted for three (3) working days on the special bulletin boards supplied for Union purposes. (b) An employee desiring the position must make application to Management within the three (3) day posting period. The application forms will be made available by Management. (c) The senior employee applying for the position shall be given the appointment provided that he is qualified to fill the position. (d) If the senior applicant does not receive the appointment, the Company will advise the Union and the Chief Steward of the reasons why, and the name of the employee selected for the position. (e) It is agreed that temporary assignments can be made without regard to seniority to enable the company to meet operational requirements or to hire and/or train employees and pending assignments made under job posting provided that the temporary assignments will not be used to deny senior employees the right to fill positions under the job posting provisions. Temporary assignment is defined as a period of one (1) month or less

29 LEAVES OF ABSENCE SECTION 18. (A) Leaves of Absence, without pay, shall be granted by the Company to an employee for reasonable cause, without prejudice to the employee's seniority or other rights. Application for leave of absence must be made in writing to a representative of the Company designated by it for such purpose, and be approved in writing by such Company representative and a copy thereof given to the Chief Shop Steward for the Union. Generally, such leave of absence will be for a period of not more than thirty (30) days, but may be extended for reasonable cause by mutual agreement between the Company and the Union. Any employee elected or appointed as a Union officer, or as a delegate to any labour activity, necessitating a leave of absence, shall be granted such leave, without pay, for a period of a single term of office or three (3) years, whichever is the lesser, subject to renewal at the end of such period at the option of the Company. Employees granted "leave of absence" shall be re-employed by the Company at the end of such leave if work is available in accordance with his accumulated seniority and, in any event, shall be re-employed as soon as work is available in accordance with such employee's seniority status. Any employee who, while on leave of absence, obtains employment with another employer without having obtained prior permissions to do so from the Company and the Union, shall be subject to discharge. The Chief Shop Steward shall receive a copy of the permission for the leave of absence within one (1) workday of it being issued to the employee. The Chief Shop Steward or the employee's Shop Steward shall have his copy before the leave of absence becomes effective. (B) In the event of a death in the immediate family and recognized common-law equivalent relationships (mother, father, spouse, child, brother, sister, grandparent, mother-in-law, father-in-law, brother-in-law, sister-in-law) of an employee, such employee shall be permitted to take such time off as may be necessary to attend or make arrangements for the funeral/memorial services. Such employee shall be paid his regular straight-time hourly rate for each workday so taken, but not to exceed three (3) days pay. (C) All negotiations for a new agreement or amendments to this Agreement shall be conducted during working hours. The Company agrees to pay, at their regular rate of pay, one (1) Union member for every 50, or part thereof Union members, for time spent in such negotiations, as a member of the Union's Negotiating Committee