COLLECTIVE AGREEMENT. A.O. Smith Enterprises Ltd.

Transcription

1 D COLLECTIVE AGREEMENT between A.O. Smith Enterprises Ltd. and UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION (The United Steelworkers) LOCAL EFFECTIVE NOVENBER 1, OCTOBER 31, 2019

2 COLLECTIVE AGREEMENT Between A.O. Smith Enterprises Ltd. Fergus, Ontario or their successors and/or their assigns, hereinafter called "The Company" of the First Part and THE UNITED STEELWORKERS hereinafter called "The Union" of the Second Part

3 ARTICLE SUBJECT PAGE 1 Purpose of Agreement Union Recognition No Discrimination Management Rights Union Security...8 Humanity Fund Union Representation Grievance Procedure...13 First Step...13 Second Step...14 Third Step...15 Arbitration...15 Policy Grievance Discharge and Disciplinary Procedure 17 9 Seniority..19 Layoff.23 Severance Allowance...25 Recall 27 Job Postings...28 Temporary Transfers...33 Automation

4 ARTICLE SUBJECT PAGE 10 Leaves of Absence...35 Maternity and Parental Leave...35 Union Leave of Absence Bereavement Clause Safety and Health Bulletin Boards Copies of Agreement Placement of Physically Restricted Employees Court Duty Hours of Work Overtime Shift Premium Reporting Allowance Statutory Holidays Vacations Insurance and Pension Benefits Sick Pay Benefits...55 Short Term Disability Insurance (S.T.D.).55 Long Term Disability Insurance (L.T.D.) Salaries List of Appendices Duration of Agreement

5 APPENDICES SUBJECT PAGE A Job Classifications and Grades...61 B Cost of Living Allowance...63 C Insurance Programs...64 Group Insurances...64 Group Life Insurance...64 Accidental Death and Dismemberment...64 Health Benefits...65 Sun Life Health Benefit Package...65 Drug Plan...65 Dental Plan 66 Vision Care Plan...66 Hearing Aid Plan...66 Extended Health Care Plan...67 D The Pension Plan E Letters of Intent

6 ARTICLE 1 - PURPOSE OF AGREEMENT NOTE: For the purpose of this Agreement, the masculine gender shall be applicable to both female and male employees, unless otherwise specified. 1:01 The purpose of this Agreement is to set forth the agreement of the parties on rates of pay, hours of work and the terms and conditions of employment, and to provide a method for the equitable settlement of differences, and thus to further a sound and harmonious relationship between the Company and its employees. ARTICLE 2 - UNION RECOGNITION 2:01 The Company recognizes the Union as the sole collective bargaining agent for all of its office, clerical and technical employees in Centre Wellington, Ontario, save and except: supervisors, persons above the rank of supervisor, salesmen, head office accountants, purchasing agents, time study and methods men, nurse and one (1) secretary for each President and for each Director and such other staff as may be mutually agreed

7 2:02 The terms and conditions set forth in this Agreement shall have full force and effect for all employees in the Bargaining Unit as described in the preceding paragraph. 2:03 Employees excluded from the Bargaining Unit defined in this Article shall not perform work of employees covered by this Agreement, except in cases of emergency, sickness or holidays, for instruction or when such employees are not available. ARTICLE 3 - NO DISCRIMINATION 3:01 Every employee has the right to equal treatment by the Company with respect to all aspects of the exercise of managerial authority by the Company, which equal treatment shall be without discrimination / harassment because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, religion, political affiliation, sex, age, marital status, family status, mentally or physically challenged, sexual orientation, and membership or office in the Union

8 ARTICLE 4 - MANAGEMENT RIGHTS 4:01 The Union acknowledges that it is the function of the Company to: (a) (b) Maintain order, discipline and efficiency. Hire, discharge, transfer, classify, promote, demote, or discipline employees, provided that a claim of discriminatory classification, promotion, demotion or transfer, or a claim that an employee has been discharged or disciplined without just and reasonable cause, may be the subject of a grievance, and dealt with as hereinafter provided. (c) Generally to manage the enterprise in which the Company is engaged, and without restricting the generality of the foregoing, to determine the number and location of facilities, the products to be manufactured, office methods and procedures, methods of manufacturing, schedules of production, kinds and locations of machines and tools to be used, process of manufacturing and assembling, the engineering and designing of its products, and the control of materials and parts to be incorporated in the products produced. 4:02 There will be a joint Union/Management Committee referred to as the L Team (Leadership Team). When presented with an agenda, the L - 7 -

9 Team will discuss matters pertaining to the Collective Bargaining Agreement and operation of the Office. 4:03 In view of the orderly procedure established herein for the disposition of employees complaints and grievances, the Company agrees that there will not be any lockout of its employees for the duration of this Agreement, and the Union agrees that it shall not instigate nor condone any strike which will stop or interfere with production for the duration of this Agreement. ARTICLE 5 - UNION SECURITY 5:01 (a) The Company shall deduct Union dues including, where applicable, initiation fees and assessments, on a monthly 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. Each employee in the bargaining unit shall be required as a condition of employment to have an amount equivalent to the regular weekly Union dues deducted from his pay weekly. All employees covered by this agreement shall become and remain members of the Union as a condition of - 8 -

10 employment. (b) 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 9083, Commerce Court Postal Station, Toronto, Ontario M5L 1K1, in such form as shall be directed by the Union to the Company along with a completed Dues Remittance Form R115. A copy of the Dues Remittance Form R115 will also be sent to the Union office designated by the Area Coordinator. (c) The remittance and the R115 Form shall be accompanied by a statement containing the following information: (i) A list of the names of all employees from whom dues were deducted and the amount of dues deducted; (ii) A list of the names of all employees from whom no deductions have been made and the reasons why; (iii) This information shall be sent to both the Union address identified in Article 5:01(b) above, in such form as shall be directed by the Union to the Company

11 (d) 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. (e) The Company, when preparing T4 slips for the employees, will enter the amount of Union dues paid by the employee during the previous year. Humanity Fund 5:02 The Company agrees to deduct on a weekly basis the amount of one ($0.01) cent per hour from the wages of all employees in the Bargaining Unit for all hours worked and, prior to the fifteenth (15th) day of the month following, to pay the amount so deducted to the "Humanity Fund" and to forward such payment to United Steelworkers, National Office, and to advise in writing both the Humanity Fund and the Local Union that such payment has been made, the amount of such payment and the names of all employees in the Bargaining Unit on whose behalf such payment has been made

12 It is understood and agreed that participation by any employee in the Bargaining Unit in the program of deductions set forth above may be discontinued by any employee in the Bargaining Unit after the receipt by the Company and the Local Union of that employee's written statement of his desire to discontinue such deductions from his pay. ARTICLE 6 - UNION REPRESENTATION 6:01 The Union has a right to select a Negotiating Committee of not more than three (3) employees, together with a representative of the International Union and the Local 3789 President. The Company will recognize and deal with this committee in respect to negotiations for a new contract or amendments to the existing contract. 6:02 The Company will recognize Officers of the Union; the number of whom and the area assigned shall be mutually agreed upon by the parties. 6:03 (a) A Union Grievance Committee of not more than three (3) employees, together with representatives of the International Union and the

13 Local 3789 President, shall represent the employees in matters pertaining to the administration of this Agreement. (b) The Company agrees to provide the Grievance Committee with as much notice as possible of pending meetings and to schedule and convene these meetings to allow complete discussion of the matter in question and grant the Grievance Committee reasonable time to consider and discuss the grievance prior to the meeting. 6:04 Before leaving their regular duties, Officers of the Union, referred to in this Article shall ask permission from their immediate supervisor, which permission shall not be unreasonably withheld, and will not absent themselves unreasonably in order to deal with grievances or other Union business. In accordance with this understanding, the Company will compensate such employees at their regular rate of pay for time spent in handling grievances during working hours. The Company agrees to allow Union executive members, who are working flexible working hours, time off from their regular shift to attend Local membership meetings

14 ARTICLE 7 - GRIEVANCE PROCEDURE First Step 7:01 It is the mutual desire of the parties that complaints of employees shall be adjusted as quickly as possible. Both parties, therefore, recognize that supervisory employees should be informed as quickly as possible by the Union representative, employee, or both, of any complaint whenever possible. Under ordinary circumstances, a grievance does not exist until the supervisor has had adequate time to investigate and deal with the matter. It shall be mandatory that the supervisor and the Union representative concerned fully discuss the grievance and make a positive effort to resolve it. In the event no satisfactory settlement is reached, the grievance shall be put in writing on the appropriate grievance form and presented by the employee(s) and/or the employee's Union representative to the supervisor. The written grievance shall set out the nature of the grievance, the date of the grievance and the redress sought. An answer in writing will be given by the supervisor and it is understood that under normal circumstances two (2)

15 working days will be deemed sufficient time to cover the First Step of the Grievance Procedure. Following the above, if a satisfactory settlement is not reached, then within five (5) working days of receipt of the supervisor's answer, the grievance shall be presented as follows: Second Step 7:02 The Grievor shall, accompanied by two (2) members of the Grievance Committee, present the grievance to the appropriate Manager with such explanation and discussion as may be necessary for proper understanding of the matter. The Manager shall reply in writing within three (3) working days of receipt of the grievance. Following the above, if a satisfactory settlement is not reached, then within five (5) working days of receipt of the Managers' answer, the grievance shall be presented as follows:

16 Third Step 7:03 The Grievor shall, accompanied by the President of the Local and two (2) members of the Grievance Committee, present the grievance to the Director, Finance & Administration with such explanation and discussion as may be necessary for proper understanding of the matter. The Director, Finance & Administration shall within one (1) working day schedule, and within five (5) working days convene a meeting between the Unit Chairperson of the Local, the Grievance Committee of the Union, the Director, Finance & Administration and the manager. A final decision will be rendered by management within three (3) working days of holding the Third Step meeting. It is understood the Union may be accompanied by a representative of the International and the Local 3789 President, and management may be represented by additional personnel. Arbitration 7:04 Following the above, if a satisfactory settlement is not reached, then within thirty (30) working days of receipt of management's answer, either

17 party may notify the other, in writing, of its desire to refer the matter to a single arbitrator, mutually agreed upon. Should the Company and the Union fail to agree upon a single arbitrator within five (5) days, the Minister of Labour of Ontario shall appoint the Arbitrator. The Arbitrator shall hear and determine the matter and shall issue a decision which shall be final and binding upon the parties and upon any employees affected by it. The parties shall share the cost of the Arbitrator appointed. 7:05 At any stage of the Grievance Procedure, including arbitration, the parties may have the assistance of the employee or employees concerned and any necessary witnesses. All reasonable arrangements will be made to permit the conferring parties to have access to the office to view disputed operations and to confer with the necessary witnesses. 7:06 It is understood that any of the time limits expressed in Article 7 may be extended or curtailed by mutual agreement of both parties

18 Policy Grievance 7:07 A grievance which involves an interpretation of the provisions of the Contract which could not be resolved at the lower steps of the Grievance Procedure may be filed by the Company or the Union at the Third Step of the Grievance Procedure through the Director, Finance & Administration. ARTICLE 8 - DISCHARGE AND DISCIPLINARY PROCEDURE 8:01 When an employee receives a verbal warning, an Officer of the Union must be present. 8:02 It is agreed that all verbal and written warnings will be stricken from an employee's record after nine (9) months from its occurrence and suspensions will be removed from an employee's record fifteen (15) months from its occurrence. Once removed, they shall not be used in any future situation

19 8:03 Before any employee is discharged or suspended for cause, an Officer of the Union shall be notified immediately and where possible, be present at such meeting. 8:04 Any permanent employee whom the Company suspends or discharges, or whom it contends has lost their seniority under Article 9, shall be retained at/or returned to active work until any grievance contesting such suspension, discharge or break in service question is finally resolved through the grievance and arbitration procedure. 8:05 However, the employee may be removed from active work (without pay) until the resolution of the grievance protesting the suspension or discharge if the alleged cause for suspension, discharge or termination presents a danger to the safety of employees or equipment in the facility due to fighting, theft, or concerted refusal to perform their assigned work. 8:06 Grievances involving employees who are retained at work under this provision will be handled in the Expedited Arbitration Procedure unless the Union Staff Representative and the Director, Finance & Administration

20 mutually agree otherwise. If the Arbitrator upholds the suspension, discharge or break in service of an employee retained at work, the penalty shall be instituted after receipt of the Arbitration decision. 8:07 The above references to suspensions, discharges and terminations are examples and are not intended to be all-inclusive, but indicate how various types of issues will be handled. 8:08 If an employee is not to be retained at work in accordance with the above, the employee will be allowed to meet with an Officer of the Union before leaving the premises. 8:09 Any grievance involving suspensions, discharges or terminations shall be filed at Step Three of the Grievance Procedure within three (3) working days of the action. ARTICLE 9 - SENIORITY 9:01 Seniority shall mean length of continuous service in the Company, including such periods of absence from work during which seniority is not

21 broken under this Agreement and shall be calculated from the last date of hiring in all cases except that when an employee, previously excluded from the Bargaining Unit, except as provided in Article 9:25, commences work in a Bargaining Unit job subsequent to the effective date of this Collective Agreement, the seniority for the above-mentioned employee shall be calculated from the date of entry into the Bargaining Unit. Employees returning to jobs in the Bargaining Unit as distinct from employees entering the Bargaining Unit for the first time, shall have their seniority calculated in accordance with the provisions of 9:25. 9:02 (a) The seniority of each employee covered by this Agreement shall be established after a period of twenty-five (25) working days from the date of employment. (b) For a period of forty-five (45) working days from the date of employment, an employee will be considered on probation. (c) The union will not question the dismissal of any probationary employee, nor shall the dismissal be the subject of a grievance, unless the termination was conducted in an arbitrary or discriminatory manner

22 New employees whom are laid off during their probation and rehired within six (6) months and in this way accumulate forty-five (45) days of service over this period will be credited with their full forty-five (45) days' seniority. 9:03 An employee will continue to accrue seniority under the following circumstances: (a) During approved leave of absence and any extension. (b) Under the provision of Article 10:02. (c) During approved leave of absence on Union business. (d) During layoff in accordance with Clause 9:09. (e) During personal sickness or injury up to two (2) years, except that absence in excess of two (2) years due to a compensable disability incurred during course of employment shall not break continuous service provided such individual returns to work within twenty (20) working days after final payment of compensation for such disability. Persons absent in excess of two (2) years may, upon return to work request from the Union restoration of seniority. Should the Union accept and wish to grant this request, the Company will be notified in writing of the Union's desire to do so. Such notice will constitute the request from the Union for the Company to grant the

23 restoration of the employee's seniority. Acceptance by the Company of the Union's request will not be unreasonably withheld. 9:04 An employee will lose seniority for any of the following reasons: (a) Voluntary termination or discharge for cause. (b) Failure to return to work at the end of an approved leave of absence, unless mitigating circumstances can be proven which prevented the employee returning. (c) (d) Failure to report in accordance with the recall provision of this Article. Personal sickness or injury of more than two (2) years consistent with the provisions of 9:03(e). (e) For layoff in excess of the provisions set forth in 9:09 of the Agreement. 9:05 If an employee remains away from work in excess of three (3) working days without permission or reporting to the Human Resources Department, an employee will first be warned by letter, and if the offence occurs again, will be given a suspension of two (2) working days without pay; five (5) working days suspension without pay for the next offence, and for the next offence, the employee will be discharged

24 9:06 The Company will provide the Union with seniority lists, once every six (6) months, giving the job classification and date of hiring of each employee in the Bargaining Unit. At the same time, the Company will furnish the Union President with a seniority list showing the salary of each employee. Layoff 9:07 Seniority shall govern in event of layoff. However, if there is no employee in the seniority unit qualified to perform the work of the employee liable for layoff, such employee may be by-passed. This clause will be applied in accordance with Clauses 9:10 and 9:11. 9:08 The Union and employee(s) shall be given at least five (5) working days notice of any layoff and where possible, the Company will endeavour to give ten (10) working days notice. The Union will be given a list of the employees to be laid off. 9:09 An employee's seniority standing will be cancelled after a layoff through lack of work if the employee has less than four (4) years seniority and has not been given notice of recall within two (2) years

25 After four (4) years seniority there would be no loss of seniority through layoff for lack of work. 9:10 In the event of a reduction of employees from layoff or any other cause, the most junior employee(s) in any job group so affected will be allowed to exercise their seniority in the following manner: (a) Employees would be allowed, in order of seniority to first displace the most junior employee within their same job group in accordance with Article 9:11 or, failing that, they would then have the opportunity to displace the next most junior employee within that same job group where Article 9:11 would apply or: (b) Where this is not feasible, such employee will be entitled to displace the most junior employee in any job group providing that the employee has the ability and qualifications to perform the job in question. This same procedure would be repeated until all affected employees have either found jobs or it is determined they are to be laid off from work. 9:11 In such a layoff situation, it is agreed that a break-in period is frequently required. When such break-in period is required it will not be more than thirty

26 (30) working days. During this period, the employee will be evaluated on a weekly basis by the Supervisor. This break in period work plan will be done in a consistent manner to ensure the requirements of the job are met. In the event of a layoff, the affected employee(s) shall have a period of twentyfour (24) hours to exercise their bumping rights. 9:12 In the event of layoff and so long as there is work available which they are able and willing to perform, notwithstanding their position on the seniority list, the Unit Chairperson, Chief Steward, and the Recording Secretary of the Local Union shall be retained by the Company. Severance Allowance 9:13 (a) Conditions of Allowance When the Company closes permanently a facility, or discontinues permanently a department of a facility or substantial portion thereof and terminates the employment of individuals, an employee whose employment is terminated as a result thereof because he was not entitled to other employment with the Company pursuant to the provisions of the Seniority Article of this Agreement,

27 shall be entitled to a severance allowance in accordance with and subject to the following provisions: (b) Eligibility Such an employee, to be eligible for a severance allowance, shall have accumulated three (3) or more years of continuous Company service as computed in accordance with the Seniority Article of this Agreement. (c) Scale of Allowance An eligible individual shall receive severance allowance based on one (1) week of pay for each year of continuous Company service with no cap. (d) Calculation of Allowance A week's severance allowance shall be determined in accordance with the provisions for calculation of vacation allowance as set forth in the Vacations Article of this Agreement. (e) Payment of Allowance and Termination Payment shall be made in a lump sum at the time of termination. Acceptance of severance allowance shall terminate employment and continuous service for all purposes under this Agreement. Payments made under this provision will not be duplicated by any monies payable under the Employment Standards Act

28 Recall 9:14 Recalls will be handled in inverse order of layoffs as defined in this Contract. 9:15 When work is available, employees on the recall list will be recalled in order of seniority, provided that the employee to be recalled can meet the normal requirements of the work in accordance with Clause 9:11. All jobs that become vacant while a layoff is in force, if they are of a higher grade than those employees who are on layoff, shall be posted. 9:16 Notice of recall to work shall be directed by registered mail to the employee's last known address. If the employee is contacted by telephone, the recall will be confirmed by registered mail. It shall be the employee's responsibility to keep the Company informed of changes of address. 9:17 The recalled employees must notify the Company of their intention to return to work within five (5) days of the date of recall notice, and must return to work within ten (10) working days of date of recall notice or make alternative arrangements satisfactory to the Company

29 9:18 An employee who refuses recall to a lower-rated job will not lose seniority, but will lose future claim to that job in the current layoff. Any employee on layoff has the right to apply for a job posting. Job Postings 9:19 When a vacancy occurs in respect to a permanent job applicable to employees for which the Union is the bargaining agent, a notice will be immediately posted on the bulletin boards for a period of three (3) working days prior to any appointment to such a job. Members of the Bargaining Unit will receive preference in making permanent appointments. The Union will receive a copy of the names of the applicants upon completion of the posting period. The Company will attempt to fill the vacancy within 30 working days of the posting closure date. Any vacancies resulting from a job posting will be filled by the Job Posting procedure. 9:20 An employee shall not be entitled to bid for such job other than by written notice to the Director, Finance & Administration within the said period of three (3) working days. Employees that may be absent from work for other than disciplinary reasons may apply for a job posting either in person or

30 through their union representative providing that the union representative is given signed authority by the employee. 9:21 Nothing herein shall preclude the Company from making a temporary appointment to any such job but such appointment shall not exceed fifteen (15) working days. The union will be notified immediately when a temporary transfer occurs along with the name of the employee, the job transferred to, the duration, and the wages being paid. The parties agree that temporary transfers shall not be abused or invoked to avoid the job posting procedure. Any experience or qualifications a temporary appointee may acquire during this period will not be considered in making a permanent appointment. 9:22 In determining the successful applicant for the job posting procedure, the Company will fully consider the following factors: (a) Ability and qualifications to perform the work;

31 (b) Seniority; and if more than one (1) applicant possesses the necessary ability and qualifications, seniority shall be the determining factor. All unsuccessful applicants for job positions will be notified by the Human Resources Department. The Union shall be notified of the disposition of the posting when a decision is made. The successful applicant will be paid the new rate of the posted for position upon moving into the new position, as per 25:04, or 30 working days, whichever is sooner. 9:23 (a) If a question arises as to the ability and qualifications of the senior applicant for a job vacancy, the matter shall be resolved in the following manner: The questions shall be referred to a joint committee of the Company and the Union. Such committee shall be comprised of the Director, Finance & Administration and relevant supervisor or department head representing the Company, and the Local Union President and relevant Officer of the Union representing the Union. If the joint committee is unable to agree on the disposition of the matter based on existing evidence, the joint committee shall give the senior applicant an

32 appropriate oral, written or practical test in order that the applicant may demonstrate ability and qualifications to perform the normal requirements of the job in which the vacancy exists. If no agreement is reached by the joint committee on the results of such oral, written or practical test, then the Company shall grant a trial period of not less than ten (10) working days but may be more depending on what is reasonable in the circumstances depending on the complexity of the work. (b) Notwithstanding the job posting provisions or Clause 9:23(a), a successful applicant will have a period of fifteen (15) working days to prove his ability to satisfactorily perform the job. In the event the successful applicant decides not to remain in the job or is removed by the Company within the prescribed period of fifteen (15) working days he will return to his former job. The remaining applicants will be deemed to be applicants for the opening and the second successful applicant will be given the same period of fifteen (15) working days in which to prove himself. Should the second successful applicant demonstrate an inability to satisfactorily perform the job, the opening may not be posted and will be considered an open posting

33 It is agreed that the Company, the first successful applicant or the second successful applicant may request a maximum of one (1) extension of fifteen (15) working days. Such extension will be granted on the mutual agreement of the Company and the Union. During such trial period, the employee will be accorded whatever facilities and instructions that are necessary to assist to qualify. 9:24 If for any reason a vacancy within the Bargaining Unit cannot be filled from within the Unit, then applications received from employees covered by Local 3789 will be considered. In the event that a vacancy is filled by an employee from the Bargaining Unit represented by Local 3789, this employee's seniority shall for all purposes, except job postings, be calculated from the employee's last date of hiring with the Company. For the purpose of job postings only, the seniority of an employee as referred to above, shall be calculated from the date of entry into the Bargaining Unit for

34 a two (2) year period. Thereafter seniority shall be from the last date of hiring with the Company. 9:25 Employees who have been or may be transferred or promoted from the Bargaining Unit to a job outside the Bargaining Unit will have six (6) months in which to determine whether or not they wish to remain outside the Bargaining Unit. After this period they will lose all Bargaining Unit seniority if they remain outside. During the six (6) month period they continue to accrue Bargaining Unit seniority. Anyone returning to the Bargaining Unit will return in accordance with Article 9:10. Temporary Transfers 9:26 Provided the employee possesses the skill and ability to perform the work in question, and business conditions allow it, the senior employee will be given preference in upgrading. A temporary transfer will not exceed fifteen (15) working days unless by mutual agreement, after which time the job shall be posted. An employee temporarily transferred will return to his old job after the completion of his temporary assignment or after a maximum of fifteen (15) working days in the temporary position. An employee so transferred at the

35 Company's request shall be paid his regular salary or the rate of the job to which he is transferred, whichever is the greater. Automation 9:27 In the event of installation of new mechanical, electronic or automated equipment or a process change that will significantly affect any employee(s) in the Bargaining Unit, the Company will: (a) As far in advance as possible before the installation of such equipment or process change meet with the Union Negotiating Committee with data regarding proposed date of installation, number and classification of employees likely to be affected by it, and (b) Provide training where necessary so that all employees displaced by the equipment or process can exercise their seniority rights at the applicable level. Team Leader 9:28 A Team Leader is a person selected, in accordance with the job posting procedure, to lead a group of employees within a Department because of leadership qualities and the ability to understand and perform the work of that Department. A Team Leader has no disciplinary authority; however, they

36 will assign work as required and report job failure. A Team Leader will assist or replace employees within the Department as required. ARTICLE 10 - LEAVES OF ABSENCE 10:01 (a) An employee will be allowed a leave of absence without pay for a period not in excess of one (1) month. The actual time approved will be dependent upon the reasons for same. (b) Request for leave of absence will be made in writing and directed to the employee's immediate supervisor. Such request shall not be unreasonably withheld. (c) A thirty (30) day extension may be granted subject to the approval of the Director, Finance & Administration and providing the request for same is made prior to the expiration of the previous period of leave. (d) The Union will be notified of all leaves of absence granted under this Article. Maternity and Parental Leave 10:02 Maternity and parental leave shall be granted in accordance with the current Ontario Employment Standards Act. If verifiable medical complications

37 occur outside of the period of time covered by E.I. benefits, the Weekly Indemnity plan will become effective. A female employee returning to work after a maternity leave of absence must provide the Company with a doctor's certificate that she is physically capable of resuming her normal duties. The above-mentioned employee shall notify the Company's Human Resources Department of her intention to return to work at least four (4) weeks prior to the anticipated date of return. The Company and Union agree to review Parental Leave as it pertains to the employee s right to return to the same job or job of equal pay, if and/or when the existing Employment Standards Act is amended in such a way that the worker s right to return is jeopardized. Union Leave of Absence 10:03 An employee who has been selected by the Union to attend Union Conventions or Conferences shall be granted a leave of absence without pay for this purpose. The Union will inform the Company as far in advance as possible of the names of such delegates

38 10:04 (a) Extended leaves of absence, without pay, will be granted to employees elected or appointed to staff positions with the International Union, upon written request from the International Union. (b) Leaves of absence, without pay, will be granted to employees for legitimate Union business upon written request from the President of the Local. (c) Three (3) members of the Local Union Negotiating Committee will be granted up to fifteen (15) days' wages for time lost from their regular scheduled work, when actively involved in negotiations with the Company Negotiating Committee. (d) Leave of absence will be granted at Union request to attend educational classes, seminars or conferences. Such leave is limited to eighty (80) hours in total, for Local U.S.W. in any contract year. Such leave will be paid at the employee's rate. 10:05 Vacancies created by leaves of absence shall be of a temporary nature. Failing the return of an employee to work on the expiry date of such leave, the temporary position shall become permanent and subject to the provisions of Job Posting

39 ARTICLE 11 - BEREAVEMENT CLAUSE 11:01 Employees shall be entitled to take up to five (5) consecutive working days off with pay in the event of the death of an employee s child, mother, father or current spouse. In extenuating circumstances and upon request, two (2) of the five (5) days may be used at a later date, if required. 11:02 In the event of death in an employee s immediate family, up to three (3) consecutive working days leave of absence will be granted with pay, for the standard hours of work for the day or days as applicable. By immediate family is meant: mother-in-law, father-in-law, brother, sister of the employee, grandparents of the employee or spouse, or grandchild. 11:03 One (1) day with pay, to attend the funeral, will be granted to the employee in the death of his or her daughter - in - law, son-in-law, brother-inlaw, and sister-in-law. 11:04 It is understood and agreed that step-parents, step-grandparents, step-children, legal guardians and common-law relationships are covered by the above

40 ARTICLE 12 - SAFETY AND HEALTH 12:01 The Company will make all reasonable provisions for the health and safety of the employees during their working hours and furnish adequate facilities and equipment for that purpose. The Union acknowledges its responsibility and that of the employees to co-operate in the maintenance of healthful and safe working conditions and to observe Company rules in that regard. 12:02 P.C. s shall be properly maintained and no employee will be required to operate a machine which is defective or inadequately or improperly maintained. The Company agrees to provide annual inspections and any necessary repairs to ensure that the equipment meets all operating standards as defined by the equipment manufacturers or the appropriate safety act. The results of such inspections shall be submitted to the Joint Health and Safety Committee for review and action

41 It is recognized that employees operating P.C. terminals for extended periods of time will be allowed regular breaks away from the terminal or similar positions to avoid excessive fatigue. 12:03 The Company and the Union agree to maintain a Joint Health and Safety Committee consisting of three (3) employees selected by the Union and an equal number of management representatives selected by the Company. It is agreed and understood that this Health and Safety committee will represent the interest of Local with the agreement that one (1) Union representative may be selected or appointed from Local :04 The Company agrees to pay $150 per term of the CBA towards the purchase of safety shoes, upon proof of purchase for permanent employees with the approval of their Department Manager. ARTICLE 13 - BULLETIN BOARDS 13:01 The Company agrees to provide the Union with space on bulletin boards at convenient locations to post approved Union notices. Notices for posting shall be submitted to Human Resources for approval prior to their being posted

42 ARTICLE 14 - COPIES OF AGREEMENT 14:01 The Company and the Union desire every employee to be familiar with the provisions of this Agreement, and his rights and duties under it. For this reason the Company will print the Agreement and management will give a copy to each employee and give copies to the Union such as it may require; also the book shall be printed by A.O. Smith Enterprises Ltd. or by a Union Shop, and shall be of pocket size. The Company agrees to provide an electronic PDF copy of the signed off version of the CBA, to the Union. ARTICLE 15 - PLACEMENT OF PHYSICALLY RESTRICTED EMPLOYEES 15:01 Employees who are unable to perform their regular work as a result of an industrial accident, age or other infirmity, may be exempted from the seniority provisions by mutual agreement between the Company and the Negotiating Committee and the disabled worker involved. The Company will make every effort to give such employees preference on any work which he is capable of performing

43 It is understood that under this Clause no employee may displace any employee holding greater seniority. ARTICLE 16 - COURT DUTY 16:01 The Company will pay an employee who is required to serve on a jury or appear as a witness, the difference between his normal earnings for the time he was absent and the payment he received for jury duty or appearing as a witness. The employee will present proof of attendance and the amount of pay received. ARTICLE 17 - HOURS OF WORK 17:01 (a) The regular working day shall be seven and three-quarter (7-3/4) hours, Monday to Friday inclusive, 8:00 am 4:30 pm. (b) Employees, with the mutual agreement of their supervisor/manager, may adjust their starting time provided it does not negatively impact the department and/or business. (c) Other scheduled hours for Service Advisor and Customer Service Groups will be reflective of our North American market across different time zones

44 (d) Should the Company schedule a shift outside of the three (3) hour flex period of the regular working hours, OR schedule a 12 hour shift for Saturday, Sunday and Monday, the employee will be paid as follows: a) Shift schedules outside of the three (3) hours flex period will result in a payment of shift premium in accordance with 19:01. b) In lieu of shift premium for a 12 hour Saturday, Sunday and Monday shift, the employee will be paid for hours, plus $1.00/hour for the Sunday shift. (e) Should the Company schedule any shift outside of the regular working hours, then preference for hours of work will be offered in accordance with seniority. 17:02 To assist in servicing our North American market customers, the Company reserves the right to introduce flexible working hours, as required. Flexible working hours will either start or end within three (3) hours of the employee's normal shift hours and such change in hours shall apply for a period of not less than five (5) working days. Flexible working hours will not affect the number of hours in a regular work day or work week. Flexible

45 working hours shall only be implemented following discussion with the Union and five (5) working days' notice to the affected employee. 17:03 Nothing in the provisions of this section shall be read or construed as a guarantee of hours of work per day or as a guarantee of days of work per week. ARTICLE 18 - OVERTIME 18:01 All overtime must be authorized. Overtime of one and one-half (1½) times the employee s pro-rated hourly rate for a hour week will be paid to all salary hourly paid employees for hours worked in excess of hours worked in a week. 18:02 Time and one-half (1½) shall be paid for the first four (4) hours of overtime on Saturday. Overtime at the rate of twice (2) the regular rate will be paid to all salary hourly paid employees for continuous hours worked in excess of four (4) hours overtime on a daily basis and all overtime hours on a Sunday, excepting the shifts which normally start or finish on a Sunday

46 18:03 The Company will endeavour to give 2 full working days notice when overtime is required. 18:04 All overtime is voluntary, however, an employee will be expected to work such overtime unless satisfactory alternate arrangements can be made with the immediate supervisor at the time of being requested to work. 18:05 Overtime will be distributed as equitably as possible within the department so as not to prejudice the health or personal leisure of individual employees. 18:06 No employee shall be required to take time off because of overtime worked. ARTICLE 19 - SHIFT PREMIUMS 19:01 A shift premium of twenty-two ($22.00) dollars per week will be paid to each employee for hours worked on shifts other than the regular day shift set forth in Article

47 ARTICLE 20 - REPORTING ALLOWANCE 20:01 If an employee is summoned by the Company to return for the performance of any emergency work other than his regular scheduled working hours, he shall be paid at the rate of time and one-half (1-1/2) for all hours worked pursuant to such summons and shall, in any event be paid for a minimum of four (4) hours work at the rate of time and one half (1-1/2) even though he may have worked less than four (4) hours

48 ARTICLE 21 - STATUTORY HOLIDAYS 21:01 The following shall be considered as paid holidays: New Years Day Monday Jan 2 Monday Jan 1 Tuesday Jan 1 Family Day Monday Feb 20 Monday Feb 19 Monday Feb 18 Good Friday Friday April 14 Friday Mar 30 Friday April 19 Victoria Day Monday May 22 Monday May 21 Monday May 20 Canada Day Monday July 3 Monday July 2 Monday July 1 Civic Holiday Monday Aug 7 Monday Aug 6 Monday Aug 5 Labour Day Monday Sept 4 Monday Sept 3 Monday Sept 2 Thanksgiving Monday Oct 9 Monday Oct 8 Monday Oct 14 Christmas Eve (Festive) Friday Dec 23 Friday Dec 22 Monday Dec 24 Tuesday Dec 24 Christmas Day Monday Dec 26 Monday Dec 25 Tuesday Dec 25 Wednesday Dec 25 Boxing Day Tuesday Dec 27 Tuesday Dec 26 Wednesday Dec 26 Thursday Dec 26 Festive Holiday Wednesday Dec 28 Wednesday Dec 27 Thursday Dec 27 Friday Dec 27 Festive Holiday Thursday Dec 29 Thursday Dec 28 Friday Dec 28 Monday Dec 30 Festive Holiday Friday Dec 30 Friday Dec 29 Monday Dec 31 Tuesday Dec 31 Two (2) floating festive days to be used on the working day before Christmas or the working days between Boxing Day and New Year s Day with the expectation that there will be adequate coverage within the department on those days. A list of volunteers accepted by seniority for the four (4) days will be posted by December 1 st within your department. Any resource requirements not filled by volunteers will be filled by reverse seniority

49 21:02 An employee required to work on any of the above-named holidays shall be paid at the rate of time and one-half (1-1/2) the regular straight time pro-rated hourly rate, for a hour week, in addition to the holiday. 21:03 In the event that one or more of the paid holidays occur during the employee's vacation, the employee shall be paid for the holiday in addition to vacation pay, and it shall be added to the vacation period. 21:04 The Company agrees to pay all employees for the above-mentioned holidays provided the employee has completed twenty-five (25) working days and that the employee works the scheduled shift before and the scheduled shift after the holiday unless there is a reasonable excuse for such absence or such absence is for Union or Company business, illness or an approved vacation day. 21:05 Should an employee be required to work on any of the above named Holidays, the employee should have the right to choose between time off in lieu or pay as referenced in 21:02. The time off in lieu will be mutually agreed upon between the employee and their supervisor/manager. The Union and

50 employee affected shall be given fifteen (15) working days advanced notice of the requirement to work. ARTICLE 22 - VACATIONS 22:01 All employees shall be entitled to an annual vacation with pay in accordance with the employee's length of service on the following basis: Employees with less than one (1) year's seniority by July 1 have entitlement to vacation time in hours calculated by number of weeks employed multiplied by seventy-seven and a half (77.5), divided by fifty-two (52) or fifty-three (53), whichever applies. Vacation hourly rate of pay is four (4%) percent of gross earnings, divided by eligible vacation hours. After completion of one (1) year's service by July 1, two (2) weeks [ten (10) working days] vacation with pay, or four (4%) percent, whichever is the greater, will be granted. After completion of five (5) years' service by July 1, three (3) weeks [fifteen (15) working days] vacation with pay or six (6%) percent, whichever is the greater, will be granted

51 After completion of ten (10) years' service by July 1, four (4) weeks [twenty (20) working days] vacation with pay or eight (8%) percent, whichever is the greater, will be granted. After completion of twenty (20) years' service by July 1, five (5) weeks [twenty-five (25) working days] vacation with pay or ten (10%) percent, whichever is the greater will be granted. The Company will post a notice prior to April 1 each year informing the employees with twenty (20) years' service that they must signify during the first week of April their intention of taking the fifth week of vacation or the week's pay in lieu of such vacation. 22:02 The year for vacation purposes shall be from July 1 to June 30 but by arrangement the Company agrees to extend this vacation period to August 31. In the event of a vacation shutdown, the Company will endeavour to give affected employees required to work during the vacation shutdown as much advance notice as possible in order to allow for time to make alternate arrangements

52 Employees required to work during the shutdown will be given the opportunity to advance their vacation from July to June for that vacation year. 22:03 In determining the employees' vacation allowance for any fraction of a year's service prior to July 1, the following basis for calculation will be used: Employees hired after July 1, 1974, the employment date shall govern. Employees hired prior to July 1, 1974 shall have their seniority, for vacation purposes only, dated to July 1 in the year in which they were employed. 22:04 Any employee who terminates shall be paid vacation credits on the percentage basis set forth in 22:01. 22:05 The Company agrees to grant vacations during the summer months; seniority shall govern in case of an employee's choice. According to the requirements of the business, every effort will be made to grant employees entitled to vacation in excess of two (2) weeks the balance of their vacation period at times requested by the employee