AGREEMENT BETWEEN GATES CANADA INC. AND LOCAL NO. 733 OF

Transcription

1 AGREEMENT This AGREEMENT made and entered into as of the 28th day of April, 2009 BETWEEN GATES CANADA INC. in Brantford, hereinafter referred to as "the Company", AND LOCAL NO. 733 OF THE UNITED STEELWORKERS hereinafter referred to as "the Union".

2 ARTICLE I Recognition 1.01 The Company recognizes the Union as the sole and exclusive bargaining agency for all the employees of the Company, save and except foremen, persons above the rank of foreman, uniformed security guards, Chief Engineer, office and sales staff All prov1s1ons between Gates Canada Inc. and U.S.W., Local 733 shall be consistent with all Ontario legislation and any applicable Federal legislation. Allegations of any inconsistency under this provision may be pursued through the grievance procedure and/or arbitration. ARTICLE II 201 Discrimination The Company and the Union agree that there shall be no discrimination or intimidation of any sort practised by the Company or by the Union by reason of any activity or lack of activity, past or future, of any employee with or in respect to membership or non-membership or activity or lack of activity in the Union The Company agrees that it will not by any means, directly or indirectly, persuade or influence, or attempt to persuade or influence any employee against membership or activity in the Union. The Union agrees that it will not solicit membership on Company time The Company and the Union agree to maintain the policy of no discrimination as governed by applicable legislation. 2

3 ARTICLE Ill No Strike or Lockout 3.01 The Union agrees to the no-strike prov1s1ons of the Labour Relations Act of Ontario which says, "No employee bound by the Agreement shall strike", and "No employee shall do any act if he/she knows or ought to know that, as a probable and reasonable consequence of the act, another person or persons will engage in an unlawful strike." Under the Act a "strike includes a cessation of work, a refusal to work or continue to work by employees in combination or in concert or in accordance with a common understanding, or a slowdown or other concerted activity on the part of employees designed to restrict or limit output." 3.02 The Company agrees that it will not take over the processing of materials from any other firm at which a strike is in progress, with the purpose of assisting that firm in breaking the strike. Employees under the bargaining unit, will not be required to cross the picket lines of other firms where duly sanctioned strikes are in progress The Company agrees there shall be no lockout so long as this Agreement continues to operate. ARTICLE IV Hours of Work 4.01 The normal weekly schedule of the facility is a five day, forty hour week, Monday to Friday inclusive, but this shall not be construed as a guarantee of hours of work per day or per week. Each employee is assigned regular shift hours according to his/her type of work and number of shifts per day. Weekly starting times and shift starting times will be scheduled in accordance with distribution requirements. In the event distribution conditions require that a major change be made in starting times as set forth above, the Union Executive will be advised of the change and reason therefore. Normal shift schedules will be as follows: 3

4 Distribution: Day Shift: 7 a.m. to 3 p.m minutes paid lunch period and/or 8 a.m. to 4 p.m minutes paid lunch period and/or 9 a.m. to 5 p.m minutes paid lunch period Afternoon Shift: Quality Assurance: Day Shift: Afternoon Shift: 3 p.m. to 11 p.m.- 20 minutes paid lunch period. 8 a.m. to 4 p.m.- 20 minutes paid lunch period. and/or 7 a.m. to 3 p.m minutes paid lunch period. 3 p.m. to 11 p.m.- 20 minutes paid lunch period. On operations where distribution conditions make it advisable, other starting times may be used Two 10-minute rest periods will be allowed each shift with smoking privileges. 4

5 ARTICLE V Wages 5.01 A classified worker temporarily transferred at the request of the Company while his/her regular work is available will be paid CAP of his/her classification or CAP of the job transferred to whichever is the higher. An unclassified employee so transferred will be paid his/her regular rate or the rate of the job transferred to, whichever is the higher Where an employee is advised by the supervisor or foreman, after having worked four (4) hours or more on his/her regular shift, that there is no further work available on his/her operation or group of operations for the balance of the shift, the employee may elect to go home or accept another job assignment at the prevailing rate of the job assigned for the four (4) hours or less in the remainder of the shift If an employee reports for work at his/her regular scheduled time and there is not four hours' work available for him/her on his/her regular job, or if he/she works less than four hours on his/her regular job, he/she will be given either four hours' work at some other job at the rate of the job assigned, or his/her rate, whichever is higher, or four hours' pay at his/her unclassified rate or his/her rate if a classified worker, unless he/she has received two hours' prior notification not to report to work. If the Company elects to give the employee four hours' pay as aforesaid, the employee will be permitted to leave the facility at once. This report-in pay provision does not apply if there is no work because of power failure, breakage of major equipment (computer system), catastrophe, violation of 3.01, or where the employee failed to keep his/her correct telephone number on file with his/her supervisor, or cannot be reached by telephone. Report in pay will be calculated at the applicable rate of pay for the day involved Shift premium will be paid as follows: For all hours worked on the scheduled swing shift - $.40 per hour. For all hours worked on the scheduled graveyard shift - $.40 per hour. In calculating overtime payment, the shift premium will not be included. 5

6 5.05 All employees shall be paid weekly If an employee is injured in the facility, or on Company property, if the injury would be covered under the Workplace Safety and Insurance Act (hereinafter referred to as W.S.I.B.), and as a result of such injury loses time from the shift on which it occurred, he/she will be paid for such lost time, provided: (a) He/she reports such injury to his/her supervisor or the Occupational Nurse, providing an Occupational Nurse is employed, as soon as possible after its occurrence; and (b) He/she immediately seeks medical attention for such injury; and (c) He/she is excused for the balance of the shift by his/her supervisor, a doctor of medicine, or a registered nurse on duty in the emergency room of a Brantford hospital. (d) If the incident occurs on a regular shift, payment will be at straight time. If on an overtime assignment, payment will be at the applicable overtime rate. If the employee is unable to return to the Company premises before the end of the shift he/she will also receive payment for the time between the end of the shift and the time of return. Such payment will be at straight time if the accident occurs on a regular shift and at the applicable overtime rate if it occurs on an overtime shift. An exception to this will occur when the accident happens on a regular shift and the employee is already scheduled to work overtime at the end of the shift. In such cases, the employee will receive payment at the applicable overtime rate following the end of his/her regular shift until the time of return to the Company premises. If the accident occurs on an overtime shift immediately preceding a regular scheduled shift the employee will receive payment at the overtime rate for the balance of the overtime shift followed by payment at straight time rate until the time of return to Company premises. In the event that an employee is sent directly home without returning to the facility, payment will cease at the end of the shift on which the injury was incurred, whether straight time or overtime. In the event that an employee is confined to hospital, payment will cease at the end of the period he/she was scheduled to work, whether straight time or overtime. For the purpose of this paragraph "confined to hospital" shall mean that the employee is assigned a hospital bed and remains in hospital for a minimum of eight (8) consecutive hours thereafter. 6

7 All of the above terms and conditions apply only to the date on which the injury is actually incurred and only if covered under W.S.I.B. Payment for time lost under the circumstances described above will be made at CAP in the case of a classified worker or at his/her hourly rate in the case of an unclassified worker Descriptions of job duties will be made available in the facility An employee will be paid for time lost on his/her operation if he/she is called away from same by the employer. In the case of a qualified classified worker such payment will be made at CAP or at attained progression rate for a unclassified worker or a non-qualified classified worker. Employees taking tests required by the Company outside regular working hours will be paid at straight time for the actual time spent taking such tests, excluding travel time. Payment will be made as set forth previously in this clause Employees' time records shall be completed daily. If the Company makes an adjustment to the payroll record, the employee will be notified in writing on his/her next shift following the day on which the change is made. If the employee is not in agreement with the change, the supervisor, employee and shift steward will make a reasonable effort to settle any differences. If no satisfactory determination of the point is made it may be processed through the regular grievance procedure There will be one classification for all new hires called Warehouse Worker. These new hires will be placed in this classification and be paid a job rate of $15.00 per hour (inclusive of COLA). This rate will increase by $0.75/hour every 6 months until they reach maximum job rate. Students are not eligible for progression and will be paid at a cap rate of $15.00/hour Classification and wage rates are attached hereto as Schedule "A" and form part of this Agreement. 7

8 ARTICLE VI Overtime 6.01 Time worked outside of an employee's regular eight hour shift in any 24 hour period from the time he/she is required to start work will be paid for at the rate of time and one-half. Time and one-half will be paid for Saturday work Overtime does not include: (a) Time worked by employees substituting for another at their own request. (b) A change of an employee's working hours at his/her own request in writing. (c) In no case will overtime be pyramided. 603 Employees, after two weeks of service, shall be paid an amount equal to one standard shift for each of the following eleven holidays: New Year's Day Good Friday Victoria Day Canada Day Labour Day Thanksgiving Day Christmas Day Boxing Day Three Floaters to be designated for each year. The actual dates on which the foregoing holidays will be observed are set out in Supplemental Agreement No If a holiday falls on Sunday, the next following work day shall be observed as a holiday. If a holiday falls on a Saturday, the Company may, at its option in each such case, elect to celebrate the holiday on the Saturday on which it falls or the Friday immediately preceding, or the Monday next following such Saturday. If a holiday falls within a period when an employee is on vacation, he/she will have the choice of ( 1) receiving holiday pay without taking the holiday, or (2) taking the holiday on either his/her last shift prior to his/her vacation or the first shift after his/her vacation. However, this choice must be declared to his/her supervisor at 8

9 least two full calendar weeks prior to the date on which such vacation is scheduled to begin. From time to time, emergencies may arise which will make it necessary for certain employees to work on a holiday in order that other employees will not suffer lost time. When an employee works on a holiday, he/she will be paid double his/her regular rate for the hours actually worked plus holiday pay, if he/she qualifies under the provisions of this Article. Employees in classified classifications will be paid holiday pay based on his/her CAP. Employees in unclassified classifications will be paid holiday pay based on his/her current hourly rate. Employees in split job classification where the regular job consists of part time classified and part time unclassified operations, will be paid daily holiday pay based on the E. I.E. of the classified part of classification. Only the employee actually at work for at least the minimum number of hours required on his/her last regular scheduled shift before, and at least the minimum number of hours required on his/her first scheduled shift following the holiday, shall receive holiday pay, except where the employee is on vacation, or is absent due to death in the immediate family as per Clause 10.02, personal injury, proven unavoidable illness, jury duty, or excused by supervision. The minimum number of hours required is defined as one (1) hour less than the number of hours scheduled for that shift. An employee shall receive Holiday pay while off work due to an Industrial accident. His/her holiday pay will be based on classified or unclassified classification under whichever classification the employee is listed at time of the Industrial accident Double time shall be paid for all authorized work performed on Sunday (12 midnight Saturday night to 12 midnight Sunday night), except the Graveyard and Afternoon shifts will be paid double time as follows: Sunday for a Graveyard Shift employee will start Saturday night at the same tirne his/her regular Graveyard Shift starts during the week. Sunday for an Afternoon Shift employee will end Sunday night at the sarne time his/her regular Afternoon Shift ends during the week If an employee is called into the facility for work during hours outside his/her regularly scheduled shift, and his/her response to such call results in his/her having to make an unscheduled additional trip to the facility, he/she shall receive a minimum of three hours of pay as a result of such trip. The minimum rate of pay to which the employee may be entitled under this provision will be his/her regular hourly rate. Hours paid for under this clause will be subject to the premium payment provisions found elsewhere in Article VI of this Agreement. Upon resolution of the emergency, the employee will be released from work. 9

10 This clause does not apply when an employee comes to work early and works into his/her regular shift Employees who work overtime shall not be required to take time off to offset such overtime Employees will be notified forty hours in advance if required by the Company to work overtime, except in emergencies Applicable guarantees will be paid during time worked on Saturday and Sunday. 6.10(a) 1. The purpose of this procedure is to provide, insofar as is reasonably possible, a balance of opportunities for overtime among individuals within any given classification. 2. Overtime shall be offered first to the required number of individuals who hold a classification where overtime is required and who are capable of performing the work to be done starting with the employee who has the least amount of hours credited to his/her record and for whom the necessary equipment is available. 3. If a sufficient number of employees within the classification are not available under No. 2 above then the overtime may be offered to any individual outside of the classification at the Company's discretion. 4. Records of overtime offered, accepted, refused and actually worked will be kept in each department and will be made available to employees on request. Hours paid under the call-in pay provision of the C.L.A. which exceed hours actually worked will be recorded for balancing purposes. 5. If an individual is offered work and accepts, the amount of such overtime actually worked will be recorded for balancing purposes. If he/she is absent for all or part of the assignment he/she has previously accepted, the full amount of overtime offered will be recorded for balancing purposes. 6. If an individual is offered overtime work and refuses, the amount offered or that actually worked by another employee accepting the same assignment, whichever is greater, will be recorded for balancing purposes. 7. Overtime worked by an individual outside of his/her classification in accordance with No. 3 above will not be shown on his/her record for balancing purposes within his/her classification. Overtime worked by an individual outside of his/her classification subsequent to reporting for duties within his/her classification will be shown on his/her record for balancing purposes within his/her classification. 10

11 Overtime worked by an individual within his/her classification subsequent to reporting for duties outside his/her classification will not be shown on his/her record for balancing purposes within his/her classification. 8. Time paid for such purposes as attending meetings, taking tests, wash-up, weekend start-ups, etc., will not be shown on an employee's record for balancing purposes. 9. There will be no obligation on the Company to balance overtime hours at different premium rates, i.e. whether any given overtime assignment is at time and one half or double time will be immaterial. 10. When an employee enters a classification and qualifies under No. 2 above he/she will be assigned a cumulative record equal to the highest cumulative record held in that classification. 11. Employees who do not wish to be offered overtime may sign a form to this effect. This form will remain in force until revoked in writing and will waive his or her right to be offered available overtime during the time it is in force. If revoked, the employee shall then be treated as if he/she was entering the classification under No. 10 above. 12. Eligibility for overtime during periods of absence will be governed by the following; a) SICKNESS OR INJURY Eligibility to be offered overtime will not become effective until the employee has actually returned to active duty. b) JURY DUTY Eligibility will be effective on weekends and on any week day that the employee actually reports to work on his/her regular shift. c) BEREAVEMENT LEAVE An employee will not be eligible for overtime during the period covered by the five or fewer working days that the leave is in effect. For example, a bereavement leave beginning on a Thursday and continuing through Monday would exempt an employee from eligibility through that full period, including the weekend. d) VACATION, PERSONAL LEAVE OF ABSENCE OR UNION LEAVE OF ABSENCE An employee will not be eligible for overtime during his/her entire vacation or leave period. The vacation or leave period will be deemed to start at the conclusion of his/her last shift of work and continue to the end of the last scheduled shift of absence. If this last shift occurs on a Friday, then eligibility will be restored as of 11:00 p.m. on the Friday. e) DISCIPLINARY SUSPENSION An employee will not be eligible for overtime during any period of disciplinary suspension without pay unless otherwise determined through the grievance procedure. 13. Any overtime opportunities which occur during an employee's absence for any of the reasons outlined in No. 14 above will be recorded for balancing purposes in accordance with No. 6 above. The exception to this will be 11

12 during Leaves of Absence for Union Business. Overtime opportunities occurring during such leaves will not be recorded as refused. 6:10 (b) If an employee is not offered overtime he/she was entitled to, the following procedure will be used. 1. For a violation to have occurred the following conditions must exist: i. There must be a difference of more than eight (8) accumulated overtime hours between the employee with the fewer hours and the employee who worked the overtime hours. ii. The difference in hours referred to in (i) above will be calculated based on the accumulated hours held by each of the two employees before the overtime is actually worked and recorded. 2. Violations as defined under No. 1 above will require making the affected individual whole. 3. Overtime hours paid for under No. 2 above will be added to the accumulated overtime hours of the individual receiving payment. 4.(a) On all shifts where daily overtime due to absenteeism may be required at the beginning of the following shift it will first be offered to employees within the classification on the shift then at work; if not filled it may then be offered to other employees on the shift then at work outside the classification; if not filled it may be offered to employees in the classification not at work. (b) All recorded overtime hours shall be reduced to zero on January 1st. of each year. (c) Designated Company and Union representatives shall meet monthly to review overtime records and make adjustments as necessary. Meetings may be held more or less frequently as necessary. ARTICLE VII Vacations 7.01 All employees who prior to December 31st of the current year have been continuously employed for the following periods, receive vacation with pay as follows: (1) Employees with less than one year service must complete one year before they are entitled to time off for a vacation. 12

13 (2) One year but less than five year's service - two weeks of vacation with pay at 4% of total earnings for the previous calendar year. (3) Five years but less than fifteen year's service - three weeks vacation with pay at 6% of total earnings for the previous calendar year. (4) Fifteen years but less than twenty years service -four weeks vacation with pay at 8% of total earnings for the previous calendar year. (5) Twenty years but less than twenty-five years of service- five weeks vacation with pay at 10% of total earnings for the previous calendar year. (6) Twenty-five years or more of service- six weeks vacation with pay at 12% of total earnings for the previous calendar year. Employees hired after May 1, 1991 will follow the same vacation schedule as above except they will have a maximum of four (4) weeks entitlement. This shall apply during the term of this agreement Total earnings include regular and overtime pay, vacation and holiday pay, Weekly Indemnity payments made in the previous year, Ontario Health Insurance Plan premiums which are paid by the Company on behalf of the employee, short work week benefits paid under the Supplemental Unemployment Benefits Plan, W.S.I.B. Payments for lost time including FEL Supplement payments for lost time, and bonuses for the twelve month period prior to January of the current year. In the vacation year of 1993 and thereafter, W.S.I.B. Payments for lost time received during the twelve (12) month period ending on October 31st of the preceding year will be used in calculating that portion of total earnings. The value of Ontario Health Insurance premiums will be the same as those that were in effect during December Beginning in January 1991, an employee will be credited on a monthly basis with the applicable single or family premium rate for the purpose of vacation pay calculation at year-end. The employee's status will be determined each month by his/her status then in effect under the extended health care program An employee whose employment with the Company is severed, shall receive any vacation pay then due him/her under the provisions of sections 7.01 and 7.02, and in addition shall receive vacation pay based on the appropriate percentage according to his/her service (as provided in section 7.01) of his/her total earnings (as defined in section 7.02 but applied to the current year only) received in the year in which his/her employment is severed. 13

14 An employee whose employment with the Company is severed and who has less than one year of service at the time of such severance, will be paid vacation pay in accordance with the Employment Standards Act of the Province of Ontario Vacation will be taken at any time during the calendar year, at such times as is most convenient to the Company, but every reasonable effort shall be made to schedule vacations at times suitable to the employees. In any event employees who are entitled to two or more weeks of vacation will be given the opportunity of taking two of these weeks together. Employees off on weekly indemnity or W.S.I.B. during previously scheduled vacation time will be allowed to submit a request for alternative time off under an unpaid leave of absence in accordance with the provisions of the existing guidelines for vacation scheduling When an employee of one or more years seniority, has been unable to work for a portion of the preceding vacation year, because of verified sickness or injury, and for that reason only, his/her vacation pay, calculated in accordance with Section 7.01, is less than six hundred and fifty dollars ($650.00) per week, the vacation pay to which he/she is entitled will be increased to the above minimum, provided he/she has worked a minimum of three months in the vacation year Vacation payments will be made as vacations are taken, and in amounts. corresponding to the amount of vacation being taken at a given time. ARTICLE VIII Grievance Procedure 8.01 The Union Bargaining Committee shall consist of three members. The composition of said committee shall be as follows: The President and Vice-President of the Local Union and one Divisional Chairperson. 14

15 8.02 The Union shall be permitted to appoint Stewards to a maximum number of one (1) for each twenty (20) employees in the Bargaining Unit. Adjustments to the number of Stewards may be made once each three (3) months based on the number of employees appearing on the most recent seniority list. The Union must provide the Company with a complete list of appointed Stewards detailing the area(s) each is responsible to represent and must keep the list up to date at all times Any employee with a grievance shall discuss it with his/her supervisor and give the supervisor twenty-four (24) hours, (the 24 hours shall be extended to a maximum of 48 hours if requested by the supervisor), in which to adjust or reject the grievance. If the employee is not satisfied with the answer or he/she wishes to take the grievance through the grievance procedure, it shall be dealt with as follows: Step 1 - The employee's Steward or in his/her absence an alternate Steward will first discuss the matter with the employee's supervisor and will give the supervisor 48 hours in which to adjust or reject the grievance. If the Steward feels that the employee's presence is necessary to the resolution of the grievance, the employee may be present at this meeting. Step 2 - Failing settlement at Step 1 then within five (5) working days from the Step 1 answer the grievance shall be reduced to writing, signed by the employee and Steward, dated and presented by the President to the Warehouse Manager. The written grievance should state the relief desired in settlement of the grievance. (It is understood that the granting by the Company of the relief requested in the grievance, shall resolve the grievance.) The Warehouse Manager shall hold a meeting within five (5) working days of receiving the grievance, with the President, Vice President and Divisional Chairperson, where the grievance will be reviewed. Within five (5) working days of such meeting, the Warehouse Manager will provide the President with a written answer to the grievance. It is understood that at Step 2, the Company may bring in persons necessary to assist in settlement of the grievance and the Union may bring in appropriate Local and International Union officials who are necessary to settle the grievance. It is further understood that the time limits referred to herein exclude Saturday, Sunday and holidays. Extension of these time limits may be granted upon written request by either party. Step 3 - Either party may, within thirty (30) full working days of the date of the Company's Step 2 answer, request that any difference as hereinbefore 15

16 provided be submitted to arbitration, it shall make such request in writing addressed to the other party to this Agreement, and at the same time nominate an arbitrator. Within ten full working days thereafter the other party shall nominate an arbitrator and notify the other party. The Company and the Union shall attempt to select by agreement a chairperson of the arbitration board. If they are unable to agree on such a chairperson within a further period of three working days they will draw a name from the agreed upon list of arbitrators. The list will be kept current by an annual review by the parties. The parties may, by mutual agreement on a case by case basis, use a single arbitrator in lieu of the three person board provided herein No person shall be appointed as an arbitrator who has been involved in an attempt to negotiate or settle the grievance The arbitration board or single arbitrator shall not have jurisdiction to amend or add to any of the provisions of this Agreement, or to substitute any new provisions in lieu thereof, nor to give any decision inconsistent with the terms and provisions of this Agreement. No matter may be submitted to arbitration which has not been properly carried through all previous steps of the Grievance Procedure The proceedings of the arbitration board or single arbitrator will be expedited by the parties hereto, and the decision of the majority of such board or of the single arbitrator will be final and binding upon the parties thereto Each of the parties hereto will bear the expenses of the arbitrator appointed by it and the parties will jointly bear the expenses of the chairperson of the arbitration board Any and all time limits under this agreement may be extended by mutual agreement of the parties in writing In disciplinary cases, either party has the right to request the presence of the aggrieved employee at Step 2 of the Grievance Procedure If a senior employee is discharged or suspended and he/she feels that he/she has been unjustly dealt with, he/she shall within five working days notify the Company and the Union in writing. It shall then constitute a grievance and shall 16

17 be dealt with under the Grievance Procedure, starting at Step 2. If, subsequently, it is settled in favour of the employee, he/she shall be reinstated in his/her former position and shall be compensated for all time lost less pay for any penalty time decided upon, and less any pay he/she has received during the time he/she was off. Employees discharged or suspended shall have the privilege of discussing their position with the Steward before leaving the facility. In the event that an employee is "suspended pending investigation" the Company will waive the five (5) working day time limit for filing a grievance specified above. The above time limit will be deemed to start at the point in time that the final decision regarding formal suspension or discharge is rendered and communicated to the employee A Steward, or Union Methods Engineer, or the Local President, or a member of the bargaining committee, or if necessary, any combination of two of these individuals will be provided an opportunity to investigate a grievance within the last half hour of his/her shift on which a request to do so is made to his/her supervisor. However, if a Steward cannot be excused without an undue loss of production an alternate Steward will be excused for such purpose. If a grievance involves health and safety the Union Safety Representative may also be excused along with the Steward. If a grievance involves cost standards the Local Union Methods Engineer may participate in the investigation along with the Steward unless otherwise required by law. Union representatives will be paid by the Union for time spent away from work under this provision Once a grievance has been submitted to the Bargaining Committee, it shall be settled only through the Bargaining Committee or with the consent and approval of the Committee. No grievance, verbal or written, withdrawn or dropped by the Union or granted by the Company prior to Step 2 of the Grievance Procedure will have any precedent value. A grievance may be settled by the Company and the Union during Step 2 of the Grievance Procedure, or at any time after Step 2 but prior to arbitration, with no precedent value, provided both the Company and the Union agree in writing. l7

18 8.14 It is understood that a grievance arising directly between the Company and Union will be considered a policy grievance and may be filed either by the Union President, or his/her designee, on behalf of the Union or by the Human Resources Manager, or his/her designee on behalf of the Company and will be processed beginning at the second step of the grievance procedure. ARTICLE IX Seniority New employees will be considered probationary until they have been employed for three months. Seniority shall then be credited as of the date of first entry into the service of the Company. At the Company's discretion, the employee's probationary period may be extended for a one (1) month period, subject to notification to the Union. An employee's probationary period may be extended by the amount of time spent on any modified work assignment(s) recommended by a physician and/or by the entire length of any period of absence when the period of absence exceeds five (5) consecutive working days. The Union President will be notified in writing when an employee's probationary period is being extended and the date to which the extension will apply. (a) An employee who has completed his/her probationary period will be known as a senior employee. Seniority lists shall be posted and the Union shall be furnished with a copy once every three (3) months (a) When a vacancy occurs, a notice will be posted for two (2) working days advising employees of the vacancy. The initial vacancy and subsequent vacancies created in the chain shall then be offered by seniority to those employees who are entitled as defined below. In no event shall the number of vacancies filled in this manner exceed five (5) in any one chain. 18

19 To be entitled to be offered a vacancy under the above procedure, an employee must qualify as follows: (i) The employee does not hold a bid restriction under Clause 9.03 (b) of this agreement, and (ii) the employee is capable of doing the job within a reasonable training period, (iii) the employee is actively at work and available to be offered the vacancy, or and the employee is absent from work but has previously notified the Company that he/she will accept the position if offered. An employee who does not wish to be offered vacancies under the above procedure may file a written waiver with the Company to that effect. An employee on light duty because of a temporary medical restriction must be medically capable of beginning training within ten (1 0) calendar days in order to be eligible to fill a vacancy under the above procedure. If the Company requires additional medical information and the employee is unable to provide the information within the ten (10) day time limit, then this time limit will be extended accordingly. Once the above procedure has been exhausted, the remaining vacancy may be filled through recall by seniority of an eligible individual from layoff. If there are no eligible individuals on layoff, the Company may hire to fill the position. (b) When an employee is offered a job under this prov1s1on, he/she must immediately accept or reject the job, and his/her failure to accept or reject the job immediately shall be considered as a rejection of the job. An employee who is offered the job, and who accepts it, will not be permitted to bid on another opening for twelve (12) months. The foregoing time limits will not apply to an individual who wishes to bid on another job within his/her classification on his/her shift or on another shift. A notice will be posted indicating the name of the employee who has accepted the job. 19

20 (c) The following rules shall govern in the application of the restrictions found in Clause 9.03 (b). 1. The time restrictions found in Clause 9.03 (b) commence running on the calendar date the employee signs the certification indicating his/her acceptance of the job. 2. If an employee is awarded a job (referred to hereafter as the original job) thereby accepting the time restrictions imposed by Clause 9.03 (b), and that job to which he/she has been awarded is subsequently eliminated or he/she is bumped from it, his/her bidding rights will be restored at the time of such elimination or bump, subject to the following conditions: If he/she is offered recall to the original job under the provisions of Clause 9.07 and he/she accepts or rejects such recall, the original bidding restrictions will be re-imposed with the same beginning date as the bidding restrictions referred to in the preceding paragraph. (d) 1. In the event that an employee is awarded a job and fails to qualify on that job within a reasonable training period he/she shall be returned to his/her previous job with the balance of his/her bid restriction in force. The vacancy thus created will be treated as an initial vacancy. The employee affected by the return of the employee who failed to qualify shall be returned to his/her previous job and his/her bidding rights will be restored. If such job has been eliminated, the affected employee will be treated as a displaced employee and will place him/herself in accordance with the terms of Clause 9.06 of the Collective Labour Agreement. 2. In the event that an employee is awarded a job through displacement or recall from layoff and fails to qualify on that job within a reasonable training period he/she shall be treated as a displaced employee and will place him/herself in accordance with the terms of Clause 9.06 of the Collective Labour Agreement. 3. An employee(s) who has qualified in his/her job and who subsequently becomes unable to perform that job because of substantiated chronic medical reasons or other legitimate reasons determined to be beyond his/her control shall be treated as a displaced employee and will place him/herself in accordance with the terms of Clause 9.06 of the Collective Labour Agreement. If the failure to qualify is caused by a serious injury or impairment from his/her employment with the Company and results in permanent disability, the terms of Clause 9.14 of the Collective Labour Agreement shall take precedence. 20

21 9.04 For the purpose of seniority application, the Bargaining Unit will be the Distribution Department (a) When it becomes necessary to reduce the work force, probationary employees shall first be laid off and then a sufficient number of senior employees shall be laid off, in reverse order of seniority, to reduce the work force to its proper number. (b) When the strength of a classification is to be reduced, the appropriate number of employees will be removed, (by layoff or displacement) so that the required number of employees remain. An employee displaced from his/her classification will take a job in accordance with his/her seniority Where an employee has been displaced from his/her job due to a cut in Distribution requirements and such job is resumed again within a three month period from the day he/she is displaced, he/she will be offered such job before it can be declared vacant. If during said three-month period the employee accepts another job, he/she will forfeit his/her right to his/her former job Laid off senior employees will be recalled in accordance with their seniority before any new employees are hired Senior employees on lay off will be eligible for recall for a period of two years. Seniority shall accumulate for two years provided such seniority accumulation shall not exceed his/her actual service at time of lay off. A probationary employee who is laid off will have no recall rights, but if he/she is re-hired within a six month period he/she shall accumulate service for the time worked and it shall be credited to his/her probationary service An employee will lose his/her seniority for the following reasons: (1) Voluntarily quitting. (2) Discharge, not reversed through the grievance procedure. (3) Absence from work for three (3) working days without notifying the Company, unless a good reason is given for not notifying the Company. (4) Failure to return to work or notify the Company of his/her intent within three (3) working days after receiving notice of recall, but in any case he/she must return within seven days of recall notice unless he/she has a good reason for needing a longer time. 21

22 (5) An employee who is laid-off with less than five years of seniority and is not recalled to work by the Company during the following two year period shall thereupon lose his/her seniority. An employee who is laid-off with five years or more of seniority and is not recalled to work by the Company during the following five year period shall thereupon lose his/her seniority The President, Vice-President, Secretary, Treasurer, Secretary-Treasurer, Union Methods Engineer and the Bargaining Committee with one years continuous service shall not be laid off as long as there is work in the facility which they are capable of doing. Additionally, Divisional Chairpersons shall not be laid off or displaced from their Division so long as there exists work within their Division which they are capable of doing. The Company shall be kept informed of the personnel of the officers, Bargaining Committee and Stewards It is the intent of the Company to give Senior Employees five days advance notice of layoff, except where it is impracticable to do so. If notice is not given as provided above, the employee will be paid his/her attained hourly rate in lieu of work for that part of five days during which work was not made available Any employee who suffers a serious InJury or impairment from his/her employment with the Company, which results in permanent disability, and he/she is unable to continue working on his/her own operation, the Company will endeavour to place him/her on a suitable job for which he/she is qualified and capable of performing, in accordance with his/her seniority; once so placed, seniority may be waived in case of other employees displacing such employee. If super seniority is to be awarded pursuant to this section, the terms and conditions of the job placement shall be mutually agreed to in writing by the Company and the Union (a) An employee absent from work because of bodily injuries caused by accident or sickness and qualified to receive weekly sickness and accident benefits under the terms of the Health and Life Insurance Agreement in effect from time to time between the Company and Union, shall be entitled to accumulate seniority and service during the period of his/her absence on the following basis: (1) A senior employee who has less than two (2) years continuous service with the Company will be entitled to accumulate seniority and service up to the maximum period he/she is entitled to receive weekly sickness and accident benefits. (2) A senior employee who has two (2) years or more but less than ten (10) years of continuous service with the Company will be entitled to 22

23 (b) accumulate seniority and service for a maximum period of one (1) year. (3) A senior employee who has ten (10) or more years of continuous service with the Company will be entitled to accumulate seniority and service for a maximum period of two (2) years. The provisions of subsection (a) shall in no way limit the accumulation of seniority and service by an employee who is receiving W.S.I.B. Benefits. An employee will not be subject to automatic termination at the end of his/her seniority accumulation period. It is understood, however, that this in no way restricts the right of the Company to terminate an employee for just cause (a) "Lay off' means to terminate an employee's employment due to a reduction in the size of the work force. "Laid off' shall have like meaning. (b) "Displace" means to remove an employee from his/her job classification either as a result of lack of work in that job or as the result of another employee exercising his/her seniority as provided in A displaced employee, as contrasted with a laid-off employee, has enough seniority to remain on the payroll at time of cut back while the laid-off employee does not. To displace or to be so displaced shall have like meaning When employees are recalled from layoff, they will be given their choice of available openings in order of their seniority. If, in this process, an employee selects a B job, he/she cannot bid on another job for a period of six (6) months. If he/she selects an unclassified job, he/she has immediate bidding rights If an operation is transferred from one shift to another, the employee(s) assigned to such operation immediately prior to such transfer will be given the opportunity of transferring with it. Should this opportunity be declined, such employee(s) will be placed in accordance with the provisions of Clause (a) Employees will be allowed to exercise their shift preference by seniority within their classification once each year under the following schedule: Employees will be given the opportunity to select their shift preference to be effective on the first Sunday following February 1st of each year during the life of the agreement. On January 1st, of each year, the Company will make available a form, to be submitted by the employee 23

24 no less than fifteen (15) days prior to the effective date of the shift preference change. An employee displaced from his/her shift through the operation of this clause will remain in his/her classification and immediately exercise his/her opportunity for shift preference by seniority. An employee when exercising shift preference will bump the junior employee in the classification on his/her preferred shift. (b) In the event an employee is displaced under clause 9.06, his/her option to exercise shift preference will be restored and applied immediately within his/her existing or new job classification. ARTICLE X Leave of Absence Seniority shall accumulate during any approved leave of absence In the event of the death of a member of an employee's family, the employee will be granted a leave of absence for a reasonable time and will be reimbursed for lost time at his/her Cap rate if on a classified job or unclassified rate if on an unclassified job up to the maximum number of days shown below, one of which is the day of the funeral. The term "member of an employee's family" means a spouse, child, parent, parent-in-law, brother or sister, brother-in-law or sister-in-law, son-in-law or daughter-in-law, grandparents, grandchildren or grandparents of the spouse. To qualify the employee must attend the funeral, internment or memorial service. Family Member spouse, child all others Maximum Paid Leave 5 days 3 days If the day of the funeral of a spouse or child falls on a day that the employee is not regularly scheduled to work then four (4) days of paid leave are allowed. These must be taken on consecutive scheduled work days immediately preceding or following the date of the funeral or a combination thereof. For all other members of an employee's family as defined above, the maximum paid leave allowed in such circumstances will be two (2) days subject to the same principles of flexibility in scheduling. 24

25 If, however, the date of the funeral of a spouse or child is a regular scheduled work day for the employee, then five (5) days of paid leave are allowed. One (1) day of the paid leave must occur on the date of the funeral and the other four (4) days must be work days adjacent to the date of the funeral. Again, some flexibility is allowed for the employee to choose when the five (5) days will be taken provided that the leave is taken on consecutive scheduled work days immediately preceding or following the date of the funeral or a combination thereof. For all other members of an employee's family as defined above, the maximum paid leave allowed in such circumstances will be three (3) days subject to the same principles of flexibility in scheduling. Payment is based on the number of days for which an employee is entitled to paid leave regardless of the number of hours scheduled for those days. In other words, the length of shift involved on an eligible day (4, 8, 10 or 12 hours) is payable to compensate the employee for his/her full loss of pay. For the purposes of this Section, a stepparent or foster parent shall be considered as a parent and a stepson or daughter or foster son or daughter shall be considered as a son or daughter only where the stepparent or foster parent has taken the place of the natural parent in relations to such child and is not in receipt of any financial aid for the support of such child Leaves of absence may be granted to employees for personal reasons for a period not to exceed three (3) months, upon application of the employee and approval of the Company, so long as the services of the employee are not required, and there are employees available in the facility capable of doing his/her work Jury Duty Pay- The Company agrees to pay an employee who serves as a juror in a legally constituted court or is subpoenaed as a Crown witness the difference between his/her earnings as a juror or Crown witness and his/her Cap rate or unclassified rate he/she would have realized had he/she worked his/her scheduled shift. In order to be eligible for payment employees must notify their supervisor within twenty-four (24) hours after receipt of notice of selection for jury duty or Crown witness subpoena and must furnish a written statement from the appropriate public official showing the date and time served and the amount of pay received A senior employee elected or selected as a full time officer or representative of Local 733, the USW, CLC or OFL upon request in writing to the Company, will be granted a leave of absence for whatever time is necessary. Should he/she request reinstatement within 30 days after the termination of the Union position, he/she will be reinstated in his/her former job. If his/her former job has been 25

26 eliminated, he/she will be offered an available opening or have his/her seniority rights restored under Clause 9.06 (d) A senior employee selected or elected to attend the convention of the International USW, CLC or OFL or for specific Union duties or Municipal elective duties will be granted a leave of absence upon application in writing at least one week prior to the day the leave starts. Not more than three employees at a time from Local 733 shall be off work for the purpose of attending the above convention, and the leave of absence shall not exceed three weeks. The Company will grant a leave of absence for up to five delegates elected to attend the R-P.I.C. Convention of the USW. The Union will provide to the Company at least two weeks notice in writing of such leave. ARTICLE XI Miscellaneous Subject to the terms and conditions of this Labour Agreement, the operation of the facility and the direction of all the employees, including the making and enforcing of reasonable rules to assure orderly and efficient facility operations, the determination of employee competency, the right to hire, to transfer, to promote, to demote, to suspend or discharge for just cause, to lay off for lack of work, are rights vested exclusively in the management of the Company. It is further agreed that the direction of the working forces, the right to plan, direct, and control facility operations, the right to relocate or close the facility, the right to introduce new or improved production methods or facilities, the amount of employees or supervision necessary, the right to place work with outside contractors, combining or splitting up department, schedules of production, establishment of standards of quality and quantity, determination of the extent to which the facility will be operated, and production or employment to be increased or decreased are vested exclusively in the Company. The above rights of management are not to be considered as all inclusive, but are examples of some of the types of matters or rights or functions which the Company has not granted and are still part of the inherent rights of management. All of the rights, powers, authority, etc., that the Company had prior to the signing of this Agreement are retained by the Company, except those clearly spelled out as granted by management in this Agreement. If the Company in exercising its inherent rights to manage violates any of the express provisions of this Agreement, the Union may file a grievance. 26

27 11.02 Presence of all employees on the job is necessary if Distribution requirements are to be met and full-time jobs are to be provided. Absenteeism on one job will adversely affect other employee's jobs. The Company and the Union agree that regular attendance will be required of all employees. If an employee desires to be excused from work, he/she shall obtain permission of his/her supervisor in advance. In case of emergency where it is not possible to make previous arrangements, he/she shall notify the department or shift supervisor at the earliest possible moment. Absence without leave, or report, or without reason for non-reporting, or cases where the cause of absence is misrepresented will be reason for disciplinary action by the Company. Excessive unexcusable absenteeism may be the cause for discipline including dismissal One bulletin board will be provided in the Distribution Department for the exclusive use of the Union. These boards will be used for notices of meetings and other Union business or affairs. All material posted on these bulletin boards must bear the approval of a designated representative of the Human Resources Manager before being posted The Company shall provide proper safety devices and maintain sanitary conditions in the facility, and agree insofar as possible to eliminate conditions hazardous to the health and welfare of the employees. The employees will co-operate in keeping all areas of the facility and grounds in a clean and sanitary condition, and will be responsible for keeping their own work areas in a clean and orderly condition. (a) Three representatives of the Union shall participate in the facility Safety Program and will be paid their Cap or their job rate whichever is the higher up to four (4) hours per month for meetings with the Company and safety inspection throughout the facility The Company shall provide and have printed at its own expense sufficient copies of this Agreement and letters of understanding to fill the needs of the Union and the Membership Amendments - Any of the provisions of this Agreement may be amended by mutual consent of the parties in writing There shall be one regular meeting between the Company and the Union each month. 27

28 11.08 When a derogatory notation is placed in an employee's personnel record, the employee will be given a copy of the notation and a copy will be furnished to the President of the Local Union. If the employee feels that the notation is unjustified or inaccurate, the problem may be processed through the regular grievance procedure. Derogatory notations for offences, except those for violation of Article Ill, not repeated within one year will be disregarded in the administration of discipline, and will be removed from the employee's department personnel record. Any employee who is called into the supervisor's office or the Human Resources Department to be reprimanded, disciplined, or discharged, shall be reminded in advance of such meeting of his/her right to have his/her Union Steward or Representative present at such meeting. Any discipline administered without a Steward except where the employee refused the presence of a Steward will be removed from the employee's record and the employee will be made whole. If the employee does refuse the presence of a Steward, the employee shall sign an appropriate notation to this effect The parties have executed separate agreements covering Letters of Understanding, the Retirement Plan, Insurance, SUB, Quality Assurance, Schedule "A" and Separation Payment Plan which form part of this agreement Persons not in the Bargaining Unit shall not work on jobs which are included in the Bargaining Unit except for the purpose of instruction, experimenting, temporary fill-ins during the shift, or in emergencies The Company may appoint Lead Hands. The rate for lead hand duties shall be $.30 added to his/her regular rate of pay. Names of lead hands appointed will be posted in their respective departments. A copy will be provided to the Union Where the term "working days" appears in this Agreement, it shall mean regularly scheduled working days exclusive of Saturdays, Sundays, Holidays and days on which the facility is shut down. 28

29 ARTICLE XII Union Security (a) Any employee who is a member of the Union in good standing on the effective date of this Agreement shall maintain his/her membership in the Union as a condition of his/her continued employment. (b) Any employee in the bargaining unit who is not a member of the Union shall become a member of the Union within 30 days of the signing date of this Agreement as a condition of continued employment. (c) Any employee hired into the bargaining unit on or after the effective date of this Agreement shall within 30 days become a member of the Union as a condition of employment and maintain his/her membership in the Union (a) The Company shall deduct Union dues including, where applicable, initiation fees and assessments, on a weekly basis, from the total earnings of each employee covered by this agreement. The amount of dues shall be calculated in accordance with the Union's Constitution. (b) All dues, initiation fees and assessments shall be remitted to the Union forthwith and in any event no later than 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 USW, AFL-CIO-CLC, P.O. Box Postal Station 'A', Toronto, Ontario M5W 1V7 in such form as shall be directed by the International Union to the Company along with a completed Dues Remittance Form R-115. A copy of the Dues Remittance Form R-115 will also be sent to the Union office designated by the Area Coordinator. (c) The remittance and the R-115 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 reasons; 29

30 iii. This information shall be sent to both Union addresses identified in article b) in such form as shall be directed by the International Union to the Company. (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 T-4 slips for the employees, will enter the amount of Union dues paid to the employee during the previous year Authorizations for dues deductions will be signed by the union member on a form furnished by the Union and a copy of the authorization will be given to the Company. Authorizations once executed shall be irrevocable for the duration of this Agreement or any renewal thereof, provided that if the termination of this Agreement or any renewal thereof is followed by the execution of a new Agreement, these assignments and authorizations shall be deemed to be automatically renewed for the duration of such new Agreement Authorization for Union deductions shall be automatically revoked upon: (a) Termination of employment; (b) Transfer of employment into an occupation outside the bargaining unit. ARTICLEXI.II Duration of Agreement This Agreement shall be effective from the twenty-eighth day of April, 2009 and shall continue in force until the twenty-seventh day of April 2012, and shall continue automatically thereafter for annual periods of one year each, unless written notice is given to either party not more than ninety (90) days immediately prior to the expiration date or the anniversary date of any yearly period, that it is desired to terminate or to amend the Agreement. In the event such notice is given, the parties shall commence negotiations within fifteen (15) days thereafter. The final termination of this Agreement will be in accordance with the Ontario Labour Relations Act. 30

31 IN WITNESS WHEREOF the parties hereto have executed this Collective Labour Agreement as of the twenty-eighth day of April, GATES CANADA.~ ~rj/2.. // 111: J I /,/(')'\\ B. Mills (j_-: '-''< J A. Kelley 31

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35 G A T E S C A N A D A I N C. Seventeenth Amended Supplemental Unemployment Benefit Plan For Factory Employees of Gates Canada, Inc. Established July, 1960 as amended in

36 TABLE OF CONTENTS I. Definitions 4 II. Benefit Reserve Account 6 Ill. Maximum Funding and Funding Position Maximum Funding 7 Funding Position 5 Finality of Determinations 9 Benefit Reserve Amount 9 IV. Contributions by the Company Company Contributions 9 When Contributions are Payable 10 v. Eligibility for Weekly Supplemental Benefits VI. Credit Units Application for Weekly Supplemental Benefits 10 Eligibility for Regular Benefit 10 Eligibility for a Special Benefit 14 Accrual of Credit Units 15 Forfeiture of Credit Units 17 Transfers Out of or Into Bargaining Unit 17 VII. Amount of Weekly Supplemental Benefit VIII. Duration of Benefits Weekly Supplemental Benefit 17 Employment Insurance Benefit and Other Compensation 18 Insufficient Credit Units for Full Benefit 19 Effect of Low Funding Position 19 Withholding Tax 19 Deduction of Union Dues 19 Number of Weeks of Benefits 20 Credit Units to be Canceled on Payment of a Benefit 20 IX. Conditions to Effectiveness and Continuation of Plan Effect of Thirteen Amended Agreement 21 Employment Insurance Commission Rulings and Supplementation 22 2

37 X. Miscellaneous Application for Rulings 22 Revocation of Rulings 22 Liability 23 Company Authority 23 To Whom Benefits are Payable in Certain Conditions 23 No Vested Interest 24 Non-Alienation of Benefits and Separation Payments 24 Amendment and Termination of the Plan 24 Status of Person Receiving Benefits 24 Armed Services 25 Effect on Other Benefits 25 XI. Administration of the Plan General 25 Application for a Benefit 25 Determination of Eligibility 26 Powers and Authority of the Company 27 Appeals Procedures 28 Costs of Administering Plan 31 Reports 32 Grievance Procedure 33 XII. Short Week Benefit Eligibility 33 Compensation or Available Hours 34 Determination of Amount 35 Method of Payment 37 Application for Determination 37 XIII. General Provisions Term of the Plan 37 Obligations During Term of the Plan 37 Changes Required to Obtain Rulings 37 Duration and Termination 38 3

38 ARTICLE I. DEFINITIONS The following words and phrases when used in this Plan shall have the following meanings: 1. "Active Payroll" -An Employee is on the Active Payroll in any pay period for which he/she draws pay while in the Bargaining Unit. 2. "Allowable Earnings under the Employment Insurance System" shall mean the amount of earnings not deducted from an Employee's weekly benefit rate. 3. "Average Hourly Earnings" means an Employee's regular rate of pay including COLA plus his/her off-shift premium and continuous operation wage supplement but excluding overtime, that was in effect immediately preceding the date of his/her layoff, provided that if such Employee was assigned or transferred to a new operation at a lower rate of pay during the six week period prior to layoff, the higher rate of pay will be used to determine his/her "Average Hourly Earnings." Provided, however, that should the Employee have no earnings during such six Week period other than as a learner, his/her "Average Hourly Earnings" shall be based on the first Work Week preceding such learning period. COLA as referred to above shall include the amount by which it has been reduced to fund the dental plan. If a general wage increase has become effective between the period for which Average Hourly Earnings has been calculated and the date of layoff, such general wage increase shall be added to the Average Hourly Earnings so calculated. 4. "Bargaining Unit" means the unit of Employees covered by the Collective Labour Agreement. 5. "Benefit" means a Regular Benefit, a Special Benefit, or a Short Week Benefit, or any or all three, as indicated by the context. 6. "Benefit Reserve Account" a Benefit Reserve Account shall be set up in the accounting records of the Company. Contributions will be added to this Benefit Reserve Account and Benefit payments will reduce this Benefit Reserve Account. 7. "Collective Labour Agreement" means the Collective Labour Agreement between the Company and the Union which is in effect at the particular time. 4

39 8. "Company" shall mean Gates Canada Inc., 225 Henry Street, Brantford, Ontario. 9. "Credit Unit" means a credit unit, or fraction thereof, credited to an Employee under the Plan. 10. "Day" means a calendar Day, except where the context requires otherwise. 11. "Dependents" means any persons recognized as such under the provisions of the Employment Insurance Act, by the Employment Insurance Commission. 12. "Employee" means any Employee of the Company while, during the life of this Agreement, he/she is in the Bargaining Unit defined in and covered by the Collective Labour Agreement. 13. "Full Week" or "Week" when used in connection with the period of layoff means (i) a period of layoff equivalent to a Work Week, or (ii) a Work Week for which a full-time Employee shall have been scheduled or offered work for less than 27 hours including hours paid for but not worked based on a standard 8-hour Day, and "Full Week of Layoff' shall include any such Week, or (iii) with respect to a Special Benefit or Short Week Benefit payable to an Employee, a Work Week during which the Compensated or Available Hours (as defined in Section 2 of Article XII) total less than the number of hours in his standard Work Week, but not to exceed 40; provided, however, that if there is a difference between the starting time of a Full Week and of a Week under the applicable Employment Insurance System, the Full Week shall be paired with the Week under the Employment Insurance System which corresponds most closely thereto in time. Each Week within a continuous period of layoff does not constitute a new or separate layoff. 14. "Plan" means this Gates Canada Inc. Seventeenth Amended supplemental Unemployment Benefit Plan as amended by agreement between Company and the Union in "Plant" means the Company facilities in Brantford, Ontario. 16. "Regular Benefit" means such weekly Benefit as is payable under Article VII, Section 1 (a) of the Plan. 17. "Seniority" means facility Seniority status under the Collective Labour Agreement. 18. "Short Week Benefit" means such weekly Benefit as is payable under Article XII of the Plan. 5

40 19. "Special Benefit" means such weekly Benefit as is payable under Article VII, Section 1 (b) of the Plan. 20. "Temporary Layoff' means a Work Week for which a full-time Employee shall have been scheduled or offered work for less than 27 hours including hours paid for but not worked, and in the case of a part-time Employee shall mean a Work Week for which such part-time Employee shall have been scheduled or offered work for less than half of his/her regularly scheduled hours, including hours paid for but not worked. 21. "Employment Insurance System" means the system or program, established by law, for paying benefits to persons on account of their unemployment, under which an individual's eligibility for benefit payments is not determined by application of a "means" or "disability" test, and an "Unemployment Benefit" means a benefit payable under such system. 22. "Union" means Local 733 of the United Steel Workers, representing certain Employees of the Company at its Brantford, Ontario facilities. 23. "Weekly Straight Time Pay" means an amount equal to an Employee's Average Hourly Earnings as herein defined, multiplied by forty or in the case of a part-time Employee, by the proportionately reduced number of hours. 24. "Weekly Supplemental Benefit" means either (a) a Regular Benefit or (b) a Special Benefit payable under the Plan. 25. "Work Week" or "Pay Period" means a calendar Week beginning on Sunday at the regular starting time of the shift to which the Employee is assigned or was last assigned immediately prior to being laid off. 26. "Short Work Week" means a Work Week during which an Employee performs some work for the Company or was otherwise compensated by the Company for a scheduled work Day in such Week but his/her Compensated or Available Hours for such Week are less than his/her standard Work Week (but not to exceed forty hours.) ARTICLE II. BENEFIT RESERVE ACCOUNT The Company shall maintain a Benefit Reserve Account in its accounting records and Company contributions to this Supplemental Unemployment Benefits Plan shall be credited to the Benefit Reserve Account. Benefits paid to eligible 6

41 Employees shall be paid from Company funds and charged against the Benefit Reserve Account. ARTICLE Ill. MAXIMUM FUNDING AND FUNDING POSITION Section 1. Maximum Funding There shall be a Maximum Funding of the Benefit Reserve Account for July 1960 and for each calendar month thereafter. The Maximum Funding of the Benefit Reserve Account for any calendar month up to and including the month in which the amendments of 2009 become effective shall be determined in accordance with the Plan as amended in Commencing with the month following the month in which the amendments of 2009 become effective, the Maximum Funding of the Benefit Reserve Account shall be determined by multiplying the number of Employees covered by the Plan during that month including employees on the Active Payroll plus Employees on layoff who have Credit Units by the applicable amount as shown in the following tables: ( 1) (2) For the month of November and succeeding months For the month in which the Benefit Reserve Amount first reaches $350 and succeeding months $350 $375 (3) For the month in which the Benefit Reserve Amount first reaches $375 and succeeding months $400 (4) For the month in which the Benefit Reserve Amount first reaches $400 and succeeding months $425 (5) For the month in which the Benefit Reserve Amount first reaches $425 and succeeding months $450 (6) For the month in which the Benefit Reserve Amount first reaches $450 and succeeding months $475 (7) For the month in which the Benefit Reserve Amount first reaches $475 and succeeding months $500 (8) (9) For the month in which the Benefit Reserve Amount first reaches $500 and succeeding months For the month in which the Benefit Reserve Amount first reaches $525 and succeeding months 7 $525 $550

42 (1 0) For the month in which the Benefit Reserve Amount first reaches $550 and succeeding months (11) For the month in which the Benefit Reserve Amount first reaches $575 and succeeding months (12) For the month in which the Benefit Reserve Amount first reaches $600 and succeeding months (13) For the month in which the Benefit Reserve Amount first reaches $625 and succeeding months (14) For the month in which the Benefit Reserve Amount first reaches $650 and succeeding months (15) For the month in which the Benefit Reserve Amount first reaches $675 and succeeding months $575 $600 $625 $650 $675 $700 (16) For the month in which the Benefit Reserve Amount first reaches $700 and succeeding months (17) For the month in which the Benefit Reserve Amount first reaches $725 and succeeding months Section 2. Funding Position $725 $750 Section 2(a): There shall be a Funding Position (stated as a percentage) for the Benefit Reserve Account for July 1960 and for each calendar month thereafter. The Funding Position for any particular month shall be determined by dividing the current Benefit Reserve Account balance for the month by the Maximum Funding of the Benefit Reserve Account for such a month. Section 2(b): The Funding Position for any particular month shall be applied in connection with the Benefit Reserve Account for all purposes under the Plan to each of the Pay Periods beginning within such month; provided however, that whenever the Funding Position for any particular month is less than ten percent, such Funding Position shall be applied in connection with the Benefit Reserve Account for all purposes under the Plan only to the first Pay Period beginning within such month, and thereafter there shall be determined a Funding Position (stated as a percentage) for such Benefit Reserve Account for each Pay Period until the Funding Position for a particular Pay Period equals or exceeds ten percent. Section 2(c): When the Funding Position for a particular Pay Period equals or exceeds such percentage such Funding Position shall be applied in connection 8

43 with such Benefit Reserve Account for such purposes to each Pay Period until a Funding Position for the following calendar month shall be applicable pursuant to this paragraph. Section 2(d): The Funding Position for the Benefit Reserve Account for a particular Pay Period shall be determined by dividing the current Benefit Reserve Account balance by the Maximum Funding of the Benefit Reserve Account for such Pay Period. Section 3. Finality of Determinations No adjustment in the Maximum Funding or the Funding Position of the Benefit Reserve Account shall be made on account of any subsequently discovered error in the computations or the figures used in making computations, except (i) in the case of an error in bad faith, or (ii) in the case where after discovery of an error adjustment is practicable, and then the adjustment shall only be prospective in effect, unless such adjustment would be substantial in the opinion of the Company. Nothing in the foregoing shall be construed to excuse the Company from making up any shortage in its contributions to the Benefit Reserve Account. Section 4. Benefit Reserve Amount There shall be a Benefit Reserve Amount for each month commencing with the month in which the amendments of 2009 become effective. The Benefit Reserve Amount for any particular month shall be determined by dividing the balance in the Benefit Reserve Account as of the close of the month by the number of Employees covered by the Plan during that month including Employees on the Active Payroll plus Employees on layoff who have Credit Units. The Benefit Reserve Amount shall be applied for all purposes under the Plan to each of the Pay Periods beginning within such month. ARTICLE IV. CONTRIBUTIONS BY THE COMPANY Section 1. Company Contributions Section 1(a): Commencing with the first Pay Period following the date on which the amendments of 2009 become effective and with respect to each Pay Period thereafter, for which the applicable Benefit Reserve Amount is less than the figure shown in Column A; the Company shall make a contribution to the reserve account of an amount to be determined by multiplying the applicable figure in Column B by the total number of hours for which Employees shall have received pay from the Company for such Pay Period (or lesser amount as will bring the reserve account balance to the then applicable Benefit Reserve Amount in 9

44 Column A, in which case, the remainder of said total number of hours shall be multiplied by the next lower figure in the applicable Column B). Column A $150 $300 $450 $600 $750 Column B $.10 $.08 $.06 $.04 $.02 Section 1(b): Notwithstanding any other provisions of this Agreement the Company shall not be obligated to make any contribution to the Benefit Reserve Account with respect to any Pay Period for which the applicable Benefit Reserve Amount is more than $750, and no contribution shall be in excess of the amount necessary to bring the Benefit Reserve Amount up to $750. Section 2. When Contributions are Payable Section 2(a): First Contribution- The first contribution by the Company after this amended agreement becomes effective shall be made in the month following the calendar month in which fulfillment of all of the applicable conditions to effectiveness of the Plan as set forth in Article IX shall have been completed. Section 2(b): Subsequent Contributions- Each subsequent contribution by the Company shall be made weekly in the Week following the Pay Period with respect to which the contribution is being made except that the Company may at its option accumulate weekly contributions for one month and credit the Benefit Reserve Account at the close of the month for the amount of contributions accumulated for Pay Periods within that month. ARTICLE V. ELIGIBILITY FOR WEEKLY SUPPLEMENTAL BENEFITS Section 1. Application for Weekly Supplemental Benefits No person shall be eligible for a Weekly Supplemental Benefit unless and until he/she shall have made due application therefore in accordance with the procedure established by the Company hereunder and shall have met the eligibility requirements of Section 2 or 3 of this Article V. Section 2. Eligibility for Regular Benefit An applicant shall be eligible for a Regular Benefit only if he/she is on layoff from the Company with respect to the Week for which application is made and the first day of such Week is on or after July 4, 1961 and if: 10

45 Section 2(a): Such Layoff: (1) was from the Bargaining Unit; (2) commenced after July 4, 1961; (3) occurred in a reduction of force or Temporary Layoff and was not the consequence of a condition which qualified the applicant for benefits under any agreement between the parties which provides for Severance Pay, Retirement or Disability Allowance or Weekly Sickness Indemnity; (4) was not for disciplinary reasons and was not a consequence of (i) any strike, (At the end of any legal strike by Employees, the Company and the Union shall mutually agree as to the period of time necessary for normal start-up which shall be incorporated as part of any strike settlement memorandum. After such period of time an Employee will not be disqualified for a Supplemental Unemployment Benefit under this Article V, Section 2(a) (4) solely because of such strike.) Slowdown, work stop-page, picketing (whether or not by Employees), or concerted action at the Plant or any dispute of any kind of involving Employees, whether at the Plant or elsewhere, or (ii) any war or hostile act of a foreign power (but not government regulation or controls connected therewith), or (iii) sabotage, or insurrection, or (iv) any act of God; and Section 2(b): With respect to such week the applicant: (1) had to his/her credit at least one quarter (.25) Credit Units; (2) has Seniority of one year or more; (3) has registered at and has reported to an office maintained by the Employment Insurance System to the extent required by employment_ insurance authorities and has not failed or refused to except employment deemed suitable under such system; provided, however, that this requirement shall not apply with respect to a Week of Temporary Layoff during which the Employee is eligible for a Benefit under the Plan, but is ineligible for unemployment insurance benefits solely for a reason set forth in Section 2(b) (4) (iv) and (vi) of this Article 5; (4) has received an unemployment insurance benefit not currently under protest or was serving in a training program acceptable to the Employment Insurance Commission (trainees must continue to be eligible to receive unemployment insurance benefits to qualify to receive S.U.B. payments) or 11

46 was ineligible to receive such a benefit only. (i) because such Week is the second "waiting week" of layoff of the Employment Insurance System, or (ii) because he/she did not have prior to his/her layoff a sufficient number of contributions under the Employment Insurance System to entitle him/her to a benefit or (iii) because of a limit under the Employment Insurance System of the number of weekly benefits to which the applicant is entitled in any benefit period under the Employment Insurance System, provided, however, a benefit shall be payable under the foregoing only in the period between the last day unemployment insurance benefits were paid, and the last day unemployment insurance benefits would have been payable if the applicant had been entitled to fifty-two (52) weeks of unemployment insurance payments; or (iv) because he/she was employed by the Company or otherwise compensated as defined under the provisions of the Employment Insurance System in an amount equal to or in excess of the amount which would disallow an unemployment insurance benefit for that particular week; or (v) because he/she is retired from the Company at his/her normal retirement date and is ineligible for a pension under the terms of any Company Pension Plan and Severance Award Agreement, or (vi) because he/she was participating in a vocational training or retraining program established or approved under a Dominion or Provincial Act or Scheme to provide retraining and benefits or subsistence allowances to unemployed individuals participating in such training or under similar provisions of a Dominion or Provincial law. (5) has not (i) refused an offer by the Company of available work which the Company may properly require him/her to accept under the provisions of the applicable Collective Labour Agreement, or has not (ii) refused to accept work when recalled pursuant to the applicable Collective Labour Agreement; (6) has appeared personally and reported during such Week at the location designated for that purpose if required by the Company, pursuant to the provisions of Article XI, provided that if the applicant resides outside of the municipality of metropolitan Brantford he will be required to report at less frequent intervals as may be determined by the Company; (7) was not eligible for, and was not claiming any accident or sickness or other disability benefit (other than survivor's allowance) whether publicly or privately financed, or a pension, or retirement benefit financed in whole or in part by the Company; provided, however, eligibility for, or the claiming of any such disability benefit shall not disqualify an applicant for a benefit if the applicant would have been eligible for such disability benefit had he/she been actively at work, and the receipt of such disability benefit payment does not disqualify him/her from receiving an unemployment insurance benefit; 12

47 (14) (8) was not in the services of Her Majesty's Armed Forced of Canada; (9) did not receive any Unemployment Benefit from or under any contract, plan or arrangement of any other employer; and he/she was not eligible for such a Benefit from, or under any contract, plan or arrangement of any employer with whom he/she has greater Seniority than with the Company; (1 0) did not receive any Unemployment Benefit from or under any other Supplemental Unemployment Plan to which the Company has contributed as an employer and was not eligible for such a Benefit from or under such Plan in which he/she has Credit Units which were credited earlier than the oldest Credit Units credited under this Plan; ( 11) his/her Regular Benefit computed under the Plan is at least Two Dollars ($2.00); provided that any benefits denied by reason of this paragraph shall be accumulated and paid at the end of each 13th week of benefits, or at the time the last Benefit is due as a result of layoff, whichever is earlier; (12) was not eligible for a Short Week Benefit under Article XII (13) was required to take work under the Employment Insurance Commission paying less than 80% of his "Weekly Straight Time Pay." An employee who, during the period of layoff, obtains work with another firm either on his own or through the Employment Insurance Commission, paying less than eighty percent (80%) of his/her "Weekly Straight Time Pay" will continue to be eligible for S.U.B. benefits provided such layoff is temporary and provided he/she retains recall rights under the terms of the Collective Labour Agreement. To be eligible for S.U.B. benefits under this provision, the employee must also fulfill the requirements of all other applicable provisions of this Agreement. (15) An employee who by agreement between the Company and the Union is laid off out of seniority or an employee who, by agreement between the Company and the Union, elects a voluntary layoff, will continue to be eligible for S.U.B. benefits provided the layoff is temporary and the approximate duration of the layoff is established and stated. To be eligible for S.U.B. benefits under this provision, the employee must also fulfill the requirements of all other applicable provisions of this Agreement. (16) An employee who is not called back to work consistent with his/her seniority following termination of a legal strike will become eligible for S.U.B. benefits 13

48 provided such arrangement results from an agreement between the Company and the Union and such agreements is based on the fact that it would not be practical to start up operations by basing recall on seniority rather than qualifications. To be eligible for S.U.B. benefits under this provision, the employee must also fulfill the requirements of all other applicable provisions of this Agreement. Section 3. Eligibility for a Special Benefit An applicant shall be eligible for a Special Benefit for any Week beginning on or after the effective date of this Agreement: (a) with respect to which all of the eligibility conditions for a Regular Benefit are satisfied except that the conditions set forth under Section 2(b) (11) of this Article V shall be modified to make this condition applicable to a Special Benefit and otherwise amended to substitute the word "4th" for "13th" in the provision dealing with accumulation of benefits. (b) during which he/she works for the Company and the total Compensated or Available Hours (as defined in Section 2 of Article XII) are less than the number of hours in his/her standard Work Week (but not to exceed 40 hours); and (c) with respect to which (i) the pay received or receivable from the Company was not equal to or in excess of his/her allowable Employment Insurance Earnings Limit, or (ii) the period worked for the Company was not sufficient to disqualify him/her for an Employment Insurance Benefit or "Waiting Week" credit; provided, however, that no Special Benefit shall be payable if he/she is eligible for a Regular Benefit with respect to such Week in an amount that is the same as or higher than such Special Benefit; and provided further, that a Special Benefit shall not be payable for any Week for which holiday pay is the only pay received or receivable from the Company. Section 4. Protest of Application for Employment Insurance Benefit Section 4(a): With respect to any Week for which an applicant for a Weekly Supplemental Benefit has applied for and has been denied an unemployment insurance benefit, which denial is being protested by the applicant through the procedure provided therefore under the Employment Insurance System, and also with respect to any Week for which the applicant has received an unemployment insurance benefit, payment of which is being protested by any person through the procedure provided therefore under the Employment 14

49 Insurance System, the Weekly Supplement Benefit shall not be paid to the applicant, but, if the applicant, is eligible to receive a Weekly Supplemental Benefit under the Plan except for such denial or protest of the unemployment insurance benefit, an amount equal to such Weekly Supplemental Benefit shall be set aside in a separate account until such dispute shall have been determined. If the dispute shall be finally determined in favour of the applicant, the amount in such separate account shall be paid to him/her; if the dispute shall be finally determined adversely to the applicant, the amount in such separate account shall be returned to the Benefit Reserve Account. Section 4(b): During the period that payment of a Weekly Supplemental Benefit for any Week is suspended pursuant to subsection (a) of this Section 4, the number of Credit Units which would be canceled because of such payment shall be held in suspension pending the outcome of such dispute; provided that if an applicant with Credit Units so held in suspension is at any time eligible to receive a Weekly Supplement Benefit except that he/she does not have sufficient Credit Units (other than those held in suspension) to entitle him/her to such benefit, the Company shall pay to him/her the amount of such Weekly Supplemental Benefit out of the amount previously set aside in a separate account as provided in subsection (a) of this Section 4, and shall cancel the appropriate number of the applicant's Credit Units which have been held in suspension. Upon the determination of such dispute, such Credit Units as are still held in suspension shall be canceled or reinstated in such manner as will place the applicant in the same position with respect to Credit Units, (i) as he/she would have been had the payment been made as applied for, if such dispute shall be determined in his/her favour, or (ii) as he/she would have been had such payment not been applied for, if such dispute shall be determined against him/her, or if he/she shall effectively withdraw his/her protest against the denial of such unemployment insurance benefit. Section 4(c): Amounts so set aside by the Company nevertheless shall be included in computing the Funding Position of the Benefit Reserve Account. Credit Units so held in suspension, pending the outcome of such dispute, shall not be considered as canceled in determining the number of persons laid off who have Credit Units in computing the Maximum Funding. ARTICLE VI. CREDIT UNITS Section 1. Accrual of Credit Units Section 1 (a): Credit Units shall have no fixed value in terms of either time or money, but shall be a means of determining duration of benefits under the varying circumstances from time to time prevailing. Credit Units shall be credited 15

50 to an Employee at the rate specified in subsections (b) and (c) of this Section, provided, however that- 1. "Under this Plan, and under any other Supplemental Unemployment Benefit Plan or Plans to which the Company has contributed as an employer, no Employee may have to his/her credit in the aggregate at any one time more Credit Units than specified below." Years of Employee's Seniority Less than 5 5, but less than 10 10, but less than 15 15, but less than and over Maximum Credit Units No Employee shall be credited with any Credit Unit prior to the first day as of which he/she has at least one year of Seniority and is on the Active Payroll in the Bargaining Unit; but, as of such day he/she shall be credited with Credit Units based upon his/her Work Weeks after July 4, 1960, and subsequent to his Seniority date. For the purpose of computing Seniority of one year or more in accordance with the provisions of this paragraph and in accordance with the provisions contained in Section 2(b) (2) of Article V only, an Employee with 7Y:i months or more but less than 12 months of Seniority as of the date of his/her last layoff from the Bargaining Unit, shall be entitled to have added to his/her Seniority, as of the date he/she first returned to active work from such layoff, the cumulative amounts of time he/she has been laid off from the Bargaining Unit after July 4, 1960 and subsequent to his/her employment date up to and including a maximum period of three months. For the purposes of this sub-paragraph 1(a) (2) only, an Employee shall be considered to be on the Active Payroll and shall be allowed to accumulate credited Seniority during: (i) a period of layoff not exceeding 45 days immediately preceding the date on which he/she would have attained one year of Seniority, had he/she not been laid off; (ii) a period of unauthorized absence not in excess of 14 calendar days; (iii) a period of unauthorized leave of absence, but not exceeding the first 90 days of such authorized leave of absence; 16

51 (iv) a period of disciplinary suspension, but not exceeding 14 calendar days; (v) a period of absence while receiving Workers' Compensation benefits. Section 1(b): For Work Weeks commencing after the effective date of this Agreement, Credit Units shall be credited at the rate of one half (.50) of a Credit Unit for each Work Week. (Credit Units accumulated prior thereto having been accumulated at the rate or rates specified in the Plan as established in July 1960 and as amended thereafter.) Section 1(c): For the purpose of accruing Credit Units under this Section a Work Week for an Employee means a Work Week occurring while he/she is in the Bargaining Unit and for which he/she draws pay. Time lost when excused for Local Union business, and a leave of absence for local Union business, shall be included in determining a Work Week under this Section. Section 2. Forfeiture of Credit Units A person shall forfeit permanently all Credit Units with which he/she shall have been credited if at anytime: Section 2(a): he/she shall lose his/her Seniority under the provisions as stipulated in the Collective Labour Agreement except that if an Employee retires on his/her normal retirement date and is eligible for benefits under Article V, Section 2(b) (4), his/her Credit Units will not be canceled until one year after his/her normal retirement date; Section 2(b): he/she shall be on layoff from the Bargaining Unit for a continuous period of 24 months, or Section 2(c): he/she shall willfully misrepresent any material fact in connection with an application by him/her for benefits under the Plan. ARTICLE VII. AMOUNT OF WEEKLY SUPPLEMENTAL. BENEFIT Section 1. Weekly Supplemental Benefit The Weekly Supplemental Benefit payable to any eligible applicant for a Week commencing on or after the effective date of this Agreement shall be (i) if he/she performed no work for the Company during such Week, a Regular Benefit, as computed below, or (ii) if he/she worked for the Company during such Week, but 17

52 is not eligible for Short Week Benefit under Article XII, the greater of a Regular or a Special Benefit as computed below. Section 1(a): Amount of Regular Benefit (1) "The Regular Benefit payable to an eligible applicant for each Full Week of any continuous layoff shall be: an amount which when added to his/her unemployment insurance benefit and other compensation for such Week will equal eighty percent of his/her Weekly Straight Time Pay; provided, however, that such Benefit shall not exceed $70.00 plus $1.50 for each of not more than four Dependents for any Week for which he/she is ineligible for an Employment Insurance Benefit solely for a reason set forth in Section 2(b) (4) of Article V." Section 1(b): Amount of Special Benefit A Special Benefit shall be an amount which when added to that portion of the applicant's unemployment insurance and other compensation (as defined in Section 2 of this Article) for the Week which is in excess of the applicant's pay received or receivable from the Company will equal the product of the number by which the number of hours in his/her Standard Work Week (not to exceed 40) exceeds the number of Compensated or Available Hours (as defined in Section 2 of Article XII), with any fractional hour expressed as a decimal to the nearest tenth during such week, multiplied by: (i) in the case of a Scheduled Short Work Week as defined in Article XII, eighty percent (80%) of his/her Average Hourly Earnings as herein defined; (ii) in the case of an Unscheduled Short Work Week as defined in Article XII, eighty percent (80%) of his/her Average Hourly Earnings as herein defined. Section 2. Employment Insurance Benefit and Other Compensation Section 2(a): For all purposes of this Article "Employment Insurance and other Compensation" shall mean: (1) all amounts by which the applicant's earnings or remuneration or otherwise, as defined under the law of the Employment Insurance Regulations; exceed the allowable earnings under Employment Insurance System; (2) all amounts he/she would have received from the Company for hours scheduled or offered him/her but not worked; tt)e amount being computed on the basis of "Average Hourly Earnings" as herein defined; 18

53 (3) the amount of all other benefits in the nature of compensation or benefits for unemployment received or receivable under Municipal, Provincial or Federal laws and regulations. Section 3. Insufficient Credit Units for Full Benefit If an applicant shall have available less than the full number of Credit Units required to be canceled for the full amount of the Weekly Supplemental Benefit (as set forth in Article VIII) for any Week for which he/she is otherwise eligible, he/she shall be paid such Weekly Supplemental Benefit in full and his/her remaining Credit Units shall be canceled. Section 4. Effect of Low Funding Position "Notwithstanding any of the other provisions of the Plan, if and as long as the applicable Funding Position for any Week shall be above zero percent (0%), weekly supplemental benefits for such week shall be paid to eligible claimants. If such payments result in a negative balance in the funding position, then the deficit will be recovered through the normal Company contributions to the Plan as specified elsewhere in this agreement and payment of weekly supplemental benefits to eligible claimants will not become payable until such time as the funding position again reaches or exceeds four percent (4%). This amendment shall become effective only upon approval of the Employment Insurance Commission. If approval is not granted then the language included under this same provision in the 2006 to 2009 agreement shall remain in full force and effect for the duration of this agreement." Section 5. Withholding Tax The Company shall deduct from the amount of any benefit as computed under the Plan any amount required to be withheld by the Company by reason of any law or regulation, for payment of taxes or otherwise to any Dominion, Provincial or Municipal government. 19

54 ARTICLE VIII. DURATION OF BENEFITS Section 1. Number of Weeks of Benefits The number of weeks for which an eligible applicant shall receive a Benefit payment shall be determined on the basis of the number of his/her Credit Units and the Funding Position applicable to the weeks for which benefits are paid to him/her. When all of an eligible applicant's Credit Units shall have been canceled, he/she shall be entitled to no further benefits until he/she shall have been credited with additional Credit Units. Section 2. Credit Units to be Canceled on Payment of a Benefit The number of Credit Unit to be canceled for any Benefit shall be determined on the basis of the (i) Seniority of the person to whom such Benefit is paid at the time of his/her layoff; plus, up to 45 days of credited Seniority accumulation if such person was laid off not more than 45 days prior to the date on which he/she would have attained one year of Seniority had he/she not been laid off, and (ii) the Funding Position applicable to the Week for which such Benefit is paid, in accordance with the following table: If the Trust Fund Position applicable to the Week for which such Benefit paid is: 1 year but less than 5 years And the Seniority of the person to whom such Benefit is paid is: 5 years but less than 10 years 10 years but less than 15 years 15 years but less than 20 years 20 years and over 80% or over 70%-79.99% 60%-69.99% 50%-59.99% 40%-49.99% 30%-39.99% 20%-29.99% 10% % 4%-9.99% Under 4% The Credit Units canceled for such Benefit shall be: No Benefit Payable - 20

55 provided, however, that one-half of the number of Credit Units required to be canceled according to the table will be canceled for an Unscheduled Short Week Benefit when with respect to such Week the Employee has earned from the Company an amount equal to or in excess of eighty percent (80%) of his/her Weekly Straight Time Pay; and no Credit Units shall be canceled when an Employee receives (i) a Short Week or Special Benefit for a Scheduled Short Work Week, or (ii) a Short Week Benefit for an Unscheduled Short Work Week where such Benefit is payable for a period of less than three (3) hours. ARTICLE IX. CONDITIONS TO EFFECTIVENESS AND CONTINUATION OF PLAN Section 1. Effect of Seventeenth Amended Agreement This Seventeenth Amended Agreement on Supplemental Unemployment Benefits, when it becomes effective, shall supersede and completely replace and supplant the original Supplemental Unemployment Benefits Plan established in July 1960 as amended in the Second Amended Agreement dated April23, 1966, the Third Amended Agreement dated April 28, 1969, the Fourth Amended agreement dated July 16, 1971, the Fifth Amended Agreement dated April 28, 197 4, the Sixth Amended Agreement dated October 20, 1977, the Seventh Amended Agreement dated April28, 1980, the Eighth Amended Agreement dated June 6, 1983, the Ninth Amended Agreement dated April28, 1985, the Tenth Amended Agreement dated April28, 1988, the Eleventh Amended Agreement dated April 28, 1991, the Thirteenth Amended Agreement dated April 28, 1997, the Fourteenth Amended Agreement dated April 28, 2000, the Fifteenth Amended Agreement dated April 28, 2003 and the Sixteenth Amended Agreement dated April 28, However, until such time as this Agreement becomes effective, the Plan shall be governed in all respects by the terms of the original Plan as amended in the Second Amended Agreement dated April 23, 1966, the Third Amended Agreement dated April28, 1969, the Fourth Amended Agreement dated July 16, 1971, the Fifth Amended Agreement dated April28, 1974, the Sixth Amended Agreement dated October 20, 1977, the Seventh Amended Agreement dated April28, 1980, the Eighth Amended Agreement dated June 6, 1983, the Ninth Amended Agreement dated April28, 1985, the Tenth Amended Agreement dated April 28, 1988, the Eleventh Amended Agreement dated April 28, 1991, the Twelfth Amended_Agreement dated April28, 1994, the Thirteenth Amended Agreement dated April28, 1997, the Fourteenth Amended Agreement dated April 28, 2000, the Fifteenth Amended Agreement dated April 28, 2003 and the Sixteenth Amended Agreement dated April 28,

56 Section 2. Employment Insurance Commission Rulings and Supplementation Section 2(a): It is the purpose of the Plan to supplement unemployment insurance benefits to the levels herein provided, and not to replace or duplicate them. Section 2(b): The Company shall not be required at any time to make any contribution to the Benefit Reserve Account nor to pay Weekly Supplemental Benefits unless and until it shall have been established to the satisfaction of the Company by administrative rulings from the Employment Insurance Commission of the Dominion Government or other competent authorities, or by statutory amendments, that supplementation (as hereafter defined) is permitted. When such rulings or amendments are obtained, Weekly Supplemental Benefits shall be paid to eligible applicants (provided that the requirements of Section 1 of this Article IX have been met) with respect to Pay Periods commencing on or after the later of the following dates; (i) the date of commencement of the first pay period beginning on or after July 1, 1961, or (ii) the date of commencement of the second Pay Period following the date on which such rulings or amendments shall have been received. Section 2(c): For purposes of this Section, "supplementation" means recognition of the right of a person to receive both an unemployment insurance benefit and a Weekly Supplemental Benefit under the Plan for the same Week of layoff at approximately the same time and without reduction of the unemployment insurance benefit because of the payment of the Weekly Supplemental Benefit under the Plan. Section 3. Application for Rulings The Company shall apply promptly to the appropriate agencies for the rulings described above in this Article IX. Section 4. Revocation of Rulings In the event that any ruling under Section 2 of this Article IX having been obtained, shall be revoked or modified in such manner as no longer to be satisfactory to the Company, all obligations of the Company under the Plan shall cease and the Plan shall thereupon terminate and be of no further effect (without in any way affecting the validity of operation of the Collective Labour Agreement or any other Agreement between the Company and the Union) except for the purpose of paying the expenses of administration and paying benefits, all in accordance with the provisions of the Plan, until the Benefit Reserve Account has been exhausted, except that Section 5 of Article VII shall not be applicable. 22

57 If there are assets still remaining in the Fund the provisions of Section 6(b) of Article X shall apply to their disposition. Section 1. Liability ARTICLE X. MISCELLANEOUS Section 1 (a): The provisions of these Articles 1 through XIII constitute the entire Plan. The provisions of Article IV express and shall be deemed to express completely each and every obligation of the Company with respect to the financing of the Plan and providing for benefits and payments. Without limiting the foregoing, no Benefit shall be payable except as stated in the Plan, and the Company shall not be obligated to provide for any Benefit not provided for in the Plan, or to make any contribution not specifically provided for in the Plan, even though the Benefit Reserve Account should be insufficient to pay benefits which eligible person would have been entitled under the Plan were the account adequate to pay such benefits. Section 1(b): The Company and the Union and each of them shall not be liable because of any act or failure to act on the part of the other, and each is authorized to rely upon the correctness or any information furnished to it by an authorized representative of the other. Section 1 (c): Notwithstanding the above provisions, nothing in this Section shall be deemed to relieve any person from liability for willful misconduct or fraud. Section 2. Company Authority Nothing contained herein shall be deemed to qualify, limit or alter in any manner the Company's sole and complete authority and discretion to establish, regulate, determine, or modify at any time levels of employment hours of work, the extent of hiring and layoff, production schedules, manufacturing methods, the products and parts thereof to be manufactured, where and when work shall be done, marketing of its products, or any other matter related to the conduct of its business or the manner in which its business is to be managed or carried on, in the same manner and to the same extent as if this Plan were not in existence nor shall it be deemed to confer upon the Union any voice in such matters. Section 3. To Whom Benefits are Payable in Certain Conditions Benefits shall be payable hereunder only to the person who is eligible therefore, except that if such a person is deceased or is unable to manage his/her affairs for any reason, any Benefit or payment payable to him/her shall be paid to his/her duly appointed legal representative, if there be one, and if not, to the spouse, parents, children, or other relatives or dependents of such person as the 23

58 Company in its discretion may determine. Any Benefit so made shall be a complete discharge of any liability with respect to such Benefit. In the case of death, no Benefit shall be payable with respect to any period following the last week of layoff immediately preceding the person's death. Section 4. No Vested Interest No person shall have any right, title or interest in or to the Benefit Reserve Account or in or to any Company contribution thereto. Section 5. Non-Alienation of Benefits and Separation Payments Except for a deduction specifically provided for under this Plan, no Benefit shall be subject in any way to alienation, sale, transfer, assignment, pledge, attachment, garnishment, execution, or encumbrance of any kind and any attempt to accomplish the same shall be void. In the event that such an attempt has been made with respect to any Benefit due or to become due to any person, the Company in it sole discretion may terminate the interest of such person in such Benefit and apply the amount of such Benefit to or for the benefit of such person, his/her spouse, parents, children, or other relatives or dependents as the Company may determine, and any such application shall be a complete discharge of all liability with respect to such Benefit. Section 6. Amendment and Termination of the Plan Section 6(a): The Plan shall not be amended, modified, suspended or terminated, except as may be proper and permissible under the terms of the Plan. Section 6{b): Upon any termination of the Plan, the Plan shall terminate in all respects except that the Benefit Reserve Account then remaining shall be subject to all of the applicable provisions of the Plan then in effect and shall be used until exhausted to pay expenses of administration and to pay benefits to eligible applicants laid off or thereafter laid off, in the order each Week of the respective date as of which they were laid off. Section 5 of Article VII shall not be applicable. In the event there is any balance in the Benefit Reserve Account after all of the above payments have been made, any such remaining amounts shall revert to the Employer. Section 7. Status of Person Receiving Benefits Neither the Company's contributions nor any Benefit paid under the Plan shall be considered a part of any Employee's wages for any purpose. No person who receives any Benefit shall for that reason be deemed an Employee of the Company during such period, and he/she shall not thereby accrue any greater 24

59 right to participate in, accrue credits or receive benefits under any other employee benefit plan to which the Company contributes, than he/she would if he/she were not receiving such benefits. Section 8. Armed Services An Employee who enters the Armed Services of Canada directly from the employ of the Company shall have his/her Credit Units canceled. If however, he/she is entitled to reinstatement such canceled Credit Units will be reinstated upon such reinstatement of employment. Section 9. Effect on Other Benefits Any payments received by the Applicant in respect of guaranteed annual remuneration or in respect of deferred remuneration or severance pay benefits are neither reduced nor increased as a result of payments received under this Plan. ARTICLE XI. ADMINISTRATION OF THE PLAN Section 1. General The determination of the eligibility under the Plan of any person who applies for a Benefit and the payment under the Plan of such Benefit shall be made and administered under and in accordance with the provisions of this Article. Section 2. Application for a Benefit The Company shall have the right to establish reasonable rules, regulations and procedures concerning the times and places at which person desiring to establish eligibility for and/or to apply for a Benefit shall report in order to comply with the eligibility requirements set forth in Section 1 and 2 of Article V, and concerning the form, content and substantiation of applications for Benefits. So far as practicable, with respect to Benefits, such procedures shall require the applicant to apply for a Benefit under the Plan for any week of layoff during the same week as, and after he/she shall have received his/her unemployment insurance benefit for such week of layoff. The Company shall designate an office or department at the Facility where persons laid off from such Plan may appear for the purpose of complying with such requirements. 25

60 An applicant shall be required to exhibit his/her unemployment insurance benefit cheque for the Week with respect to which application for a Benefit under the Plan is made, or the payment receipt or similar document showing receipt of the unemployment insurance benefit for such Week; provided however, that if the applicant was ineligible, as provided in Sub-Section 2(b) (4) of Article V, to receive an unemployment insurance benefit for such Week, such applicant shall, in lieu of exhibiting such cheque, payment receipt, or similar document, furnish proof satisfactory to the Company that he/she was ineligible solely for the reasons therein set forth. Unemployment insurance benefits shall be presumed to have been received by the applicant on the date following the date set forth on the cheques therefore, or on the date on the copy of the payment receipt of similar document. In any case where under the terms of the Plan a person is required to report at the designated Company location prior to the time that he/she may file an application for a Benefit under the Plan, he/she may be required to exhibit his/her reporting card or other evidence furnished under the Employment Insurance System, as evidence that he/she has reported at the appropriate office maintained by the System and that he/she has compiled with the eligibility requirements under the Employment Insurance System. In addition, an applicant for a Benefit under the Plan may be required to state in writing, under oath, (i) whether he/she received or was entitled to receive any benefit from any source other than the Plan and the Employment Insurance System, for the Week with respect to which application is made, and, if so, the source and amount thereof; (ii) the amount earned from all sources during such Week and the source thereof; (iii) the identity and number of his/her Dependents; and (iv) such further and additional evidence and information as the Company may deem to be material and relevant in order to enable the Company to determine whether such person is eligible to be paid a Benefit under the Plan, and if so, the amount of such Benefit. Section 3. Determination of Eligibility Section 3(a): When a person files an application for a Benefit under the Plan in accordance with Section 2 of this Article XI, and furnishes to the Company the evidence and information required to be furnished under such Section, the Company promptly thereafter shall; 1. determine whether such person is an eligible person and if he/she determined to be an eligible person, 2. determine the number of unconcealed Credit Units to the credit of such eligible person, and 26

61 3. determine whether any Benefit is payable to such eligible person, and, if so, the amount thereof. Section 3(b): If the Company determines that a Benefit is payable to an eligible persons with respect to the week for which application for such Benefit is made, it shall make payment of such Benefit to such eligible person within a reasonable time. If the Company determines after a person has been paid one or more Benefits under the Plan, that such Benefit or benefits should not have been paid or should have been paid a lesser amount or amounts (as a result of a subsequent disqualification for unemployment insurance benefits or otherwise), a written notice thereof shall be mailed to such person and such person shall return the amount of overpayment to the Company. If such person shall fail to return such amount promptly, the Company shall arrange for an amount equal to the amount of over-payment to be reimbursed by making a deduction from future Benefits otherwise payable to such person, or by making a deduction from compensation payable by the Company to such person, or both. The Company is authorized to make such deductions from the Employee's compensation. Except as otherwise provided in the Plan, at such time as such amount of overpayment is recovered, the number of Credit Units of such person, if any theretofore canceled with respect to each overpayment of benefits shall be restored to him/her, except to the extent that such restoration would raise the number of his/her Credit Units above the limitations specified in Section 1(a) (1) or Article VI at the time thereof, and except as otherwise provided in Section 2 of Article VI. Section 3(c): If the Company determines that a person is not entitled to a Benefit with respect to the Week for which application for such Benefit is made, it shall send prompt written notice thereof to him/her. Section 3(d): In making weekly wage calculations for purposes of Benefit determination, the Company shall be entitled to rely upon the official Dominion Income Tax form filed by the applicant with the Company for income tax withholding purposes; and the applicant shall have the burden of establishing that he/she is entitled to a greater number of withholding exemptions than he/she shall have claimed on such form. Section 4. Powers and Authority of the Company The Company shall have such powers and authority as are necessary and appropriate in order to carry out its duties under this Article XI including, without limitation, the following: Section 4(a): To obtain from employees, persons filing application for Benefits eligible persons, and elsewhere such information as the Company shall deem necessary in order to carry out its duties under this Article. 27

62 Section 4(b): To investigate the correctness and validity of information furnished by any person who applies for a Benefit. Section 4(c): To make appropriate determinations pursuant to this Article. Section 4(d): To determine the Funding Position of the Benefit Reserve Account in the manner and at the times specified in the Plan, including collection of the data necessary to make such determinations. Section 4(e): To establish appropriate procedures for giving notices required to be given under this Article. Section 4(f): To establish and maintain necessary records. Section 4(g): To prepare and distribute information explaining the Plan. Section 4(h): To round out figures, use averages and composites, and employ customary and routine accounting techniques as it may deem necessary and appropriate. Section 5. Appeals Procedures Section 5(a): First Step Appeals The Company shall designate one person to serve as its representative for the consideration of appeals by applicants and the Union shall designate a representative for the same purpose. The Employee designated as the representative of the Union shall be paid from the Benefit Reserve Account for time lost from work in attending meetings with the Company representative for the consideration of such appeals; said Employee shall be paid his/her Average Hourly Earnings plus the percentage of vacation allowance applicable. Any person who shall have been determined by the Company not to be entitled to any Benefit who shall have been determined to be entitled to be paid a Benefit that is lesser in amount than the amount to which such person believes he/she is entitled, who questions the number of Credit Units credited to him/her at the time of layoff, who has had more of his/her Credit Units canceled than he/she believes correct, or who is determined to be eligible for a Benefit which determination is disputed by him/her, may appeal such determination by presenting an appeal, on a form to be provided for that purpose, either to the Company representative or the Union representative. Such written appeal must be filed within ten days following the date of notice of such determination or denial or reduction of such Benefit to such person, or within ten days after the date of mailing of a cheque of such smaller amount to such person. The representative who receives said written appeal will promptly furnish one copy to the representative of the other party. 28

63 If the Union representative shall find that such appeal is justified, he/she shall so notify the other representative, and the Company representative and the Union representative shall meet within ten days from the date of the appeal (or such extended time as may be agreed upon) to determine the disposition of such appeal. In the event that two parties cannot agree upon the disposition of the appeal, the Union representative, at the request of the applicant, may refer the matter to the Board of Appeals for disposition, on a form to be provided for that purpose, within the time limit and in accordance with the procedure set forth in Section 5(b) of this Article XI. In situations where a number of Employees have filed applications for Benefits under substantially identical conditions, an appeal may be filed with respect to one of such Employees and the decision thereon shall apply to all such Employees. Section 5(b) (1): Within twenty days after disposition of an appeal by the Company and Union representatives, the Union representative may request a ruling by the Board of Appeals, such a request shall be in writing, shall specify the respects in which the Plan is claimed to have been violated and shall set forth the facts relied upon as justifying a reversal or modification of the determination appealed from. A copy of said request will be furnished to the Company representative or the Union representative, as the case may be. The Board of Appeals shall have no jurisdiction to act upon an appeal made after the time specified above or upon an appeal, which does not otherwise comply with this sub-paragraph. Subject to the limitations of sub-paragraph (2) set forth below, the handling and disposition of such a request to the Board of Appeals shall be in accordance with the regulations and procedures established by the Board. The applicant, the Union representative, or the Union members of the Board of Appeals may withdraw any appeal to the Board at anytime before it is decided by the Board. Section 5(b) (2): In ruling upon appeals, the Board shall have no authority to waive, vary, qualify, or alter in any manner the eligibility requirements set forth in the Plan, the procedure for applying for Benefits set forth therein, or any other provision of the Plan, and shall have no jurisdiction other than to determine on the basis of the facts presented and in accordance with the provisions of the Plan: (i) whether the first stage appeal and the appeal to the Board were made within the time and in the manner specified in this Section, (ii) whether the person is an eligible person with respect to the Benefit involved and, if so, 29

64 (iii) the amount of any Benefit payable; (iv) whether the accrual or cancellation of Credit Units was properly determined. Section 5(b) (3): There shall be no appeal from the decision of the Board of Appeals. It shall be final and binding upon the Union, its members, the person involved, and the Company. The Union will discourage any attempt of its members to appeal and will not encourage or cooperate with any of its members in any appeal to any court or labour board from any decision of the Board, nor will the Union or its members by any other means attempt to bring about a settlement of any claim or issue on which the Board is empowered to rule hereunder. Section 5(c): Applicability of Appeals Procedure The appeals procedures set forth in this Section may be employed only for the purposes specified in the Plan. Such procedure shall not be used to protest a denial of an unemployment insurance benefit or to determine whether or not a benefit should have been paid under an Employment Insurance System (appeal procedures thereunder being the exclusive remedy therefore). The Board of Appeals shall have no power to determine questions arising under any Collective Labour Agreement, even though relevant to the issues before the Board. All such questions shall be determined through the regular procedures provided therefore by the applicable Collective Labour Agreement, and all determinations made pursuant to such Agreement shall be accepted by the Board. Section 5(d): Composition and Procedures- Board of Appeals (1) There shall be established a Board of Appeals consisting of four members, two of whom shall be appointed by the Company (hereinafter referred to as the Company members), and two of whom shall be appointed as follows: one by the International Union, United Steel Workers of America, and one by Local 733, hereinafter referred to as the Union members. Each member of the Board shall have an alternate. In the event a member is absent from a meeting of the Board, his alternate may attend, and when in attendance, shall exercise the powers and perform the duties of such member. Either the Company or the Union at any time may remove a member appointed by it and may appoint a member to fill any vacancy among the members appointed by it. The Company and the Union each shall notify the other in writing of the members 30

65 I respectively appointed by it before any such appointment shall be effective. (2) If the members of the Board are unable to arrive at a decision by a majority vote, they shall, within five working days, meet to appoint an impartial chairperson to sit as a member of the Board to determine the matter. Failing to agree upon such a chairperson within a further period of five working days, they shall jointly apply to the Minister of Labour to appoint an impartial chairperson. The impartial chairperson shall be considered a member of the Board for the particular dispute and shall vote only in matters within the Board's authority to determine. (3) At least one Union member and one Company member shall be required to be present at any meeting of the Board in order to constitute a quorum for the transaction of business. At all meetings of the Board, the Company members shall have a total of two votes and the Union members shall have a total of two votes, the vote of any absent member being given to the member present appointed by the same party. Decisions of the Board shall be a majority of the votes cast. (4) The Board shall not maintain any separate office or staff, but the Company and the Union shall be responsible for furnishing such clerical and other assistance as its respective members of the Board shall require. Copies of all appeals, reports, and other documents to be filed with the Board pursuant to the Plan shall be filed in triplicate, one copy to be sent to the Company members at the address designated by them, and the other copies to be sent to the Union members at the address designated by them. Section 6. Costs of Administering Plan Section 6(a): Cost of Administrative Services Performed by the Company The Company shall have the right to be reimbursed each year from the Benefit Reserve Account for the cost to the Company of services performed by it during the preceding year in carrying out its duties under the Plan (other than those incurred or in behalf of its members of the Board and its representatives designated for the consideration of appeals pursuant to Section 5(a) of this Article XI, which under the provisions of this Article, are to be borne by the Company) as certified to by a qualified independent firm of certified public accountants selected by the Company. Section 6(b): Cost of Board of Appeals 31

66 The Chairperson of the Board shall receive compensation in such amount and on such basis as may be determined by the other members of the Board, and such salary, as well as reasonable and necessary expenses of the Board for forms and stationary required in connection with the handling of appeals shall be charged to the Benefit Reserve Account. Company members and Union members shall serve without compensation from the Benefit Reserve Account. Section 6(c): Cost of Local Union Representative The Employee designated by the Union as its representative for the consideration of appeals pursuant to Section 5(a) of this Article shall be paid by the Company and charged to the Benefit Reserve Account for time lost as specified in said Section. Section 7. Reports Section 7(a): Reports by the Company (1) The Company shall notify the Union in duplicate with reasonable promptness of the amount of the Funding Position for the Benefit Reserve Account as determined by it from time to time under the Plan, and shall furnish a statement showing the number of Employees on the Active Payroll and the number of laid-off persons having Credit Units, upon the basis of which such determination was made. (2) On or before March 1 of each year, beginning with the year 1965, the Company shall furnish to the Union statement (in duplicate) certified by a qualified independent firm of certified public accountants selected by the Company; (i) Showing the number of hours for which Employees drew pay from the Company and with respect to which the Company shall have made contributions during each period of the preceding year, and (ii) verifying the accuracy of the information furnished by the Company during the preceding year pursuant to Sub-Section (a) (1) of this Section 7. The Company will comply with reasonable requests by the Union for other statistical information on the operation of the Plan which the Company may have compiled. Such information may include the following: (1) The number and Seniority of Employees laid off in the Plant. (2) The amount and form of Benefits paid. 32

67 (3) The duration of Benefits. Section 7(b): Other Reports by the Company (1) Within ten days after the commencement of each month, beginning with the month in which this Agreement becomes effective, the Company shall furnish to the Union a statement showing the amounts contributed by the Company and added to the Benefit Reserve Account during the preceding month. (2) No later than the second Tuesday following the first Monday of each month beginning with the month in which this Agreement becomes effective, the Company shall furnish to the Union a statement showing the total balance in the Benefit Reserve Account as of the close of the preceding month and showing the amounts if any, paid as weekly Benefits during the preceding month. (3) The Company shall furnish all statements to the Union in duplicate. Section B. Grievance Procedure No question involving the interpretation or application of the Plan, except to the extent otherwise specified in Section 5 of this Article XI, shall be subject to the grievance procedure provided for in the Collective Labour Agreement. ARTICLE XII. SHORT WEEK BENEFIT Section 1. Eligibility An Employee shall be eligible for a Short Week Benefit with respect to a Week commencing on or after the effective date of this Agreement, or whichever shall occur later, only if: Section 1 (a): He/She has at least one (1) year of continuous service as of the last day of such Week; and Section 1 (b): During such Week he/she works for the Company but his/her Compensated or Available Hours (determined as provided in Section 2 of this Article) total less than the number of hours in his/her standard Work Week (but not to-exceed 40) (excluding any Week for which holiday pay is the only pay received from the Company;) and 33

68 Section 1 (c): During some part of such Week he/she was on a layoff from the Bargaining Unit in accordance with the provisions of Section 2(a) of Article V; and Section 1 (d): With respect to such Week, he/she satisfied all the conditions of eligibility set forth under subsection 2(b) or Article V, except subsections (b) (1), (b) (3), (b) (4), (b) (6), (b) (11) and (b) (12); and Section 1 (e): With respect to such Week he/she is ineligible to receive a full Employment Insurance Benefit only (i) because his/her wages or remuneration from the Company are equal to or in excess of his/her allowable earnings under Employment Insurance System or (ii) he/she has been employed by the Company for a period equal to or in excess of the period which would disqualify him/her for a full unemployment insurance benefit or full ''waiting week" credit, or (iii) because of the circumstances described in (i) or (ii) above occurring in conjunction with one or more of the reasons set forth in subsection 2(b) (4) of Article V; and Section 1 (f): With respect to such Week the Maximum Funding Position was four percent (4%) or more; and Section 1 (g): The Employee does not have a period or periods of layoff in the Week and in the preceding or the following Week which occur in such sequence that the Employee has a "Week of Unemployment" (as defined under the applicable Employment Insurance System) which includes some part of the Week; provided, however, that when an Employee returns to work for the Company after a period of seven or more consecutive days of layoff, with respect to which he/she has established a "Week of Unemployment" under the applicable Employment Insurance System which starts on a day other than Sunday or Monday, he may apply for a partial Short Week Benefit for any hours of layoff on days within the Work Week in which he/she returned to work which are not included within any established Employment Insurance System "Week of Unemployment." Such partial Short Week Benefit shall be calculated on the basis of the number of hours for which the Employee would regularly have been compensated for such days if he/she had not been laid off and of his/her Compensated or Available Hours for such days; and all of the eligibility requirements applicable to a Short Week Benefit for a Work Week shall apply to such days except the requirements of this subsection (g). Section 2. Compensation or Available Hours For purposes of this Agreement, Compensated or Available Hours for a Week shall include: Section 2(a): All hours for which an employee receives a pay from the Company (including call-in pay and holiday pay but excluding pay in lieu of 34

69 vacation) with each hour paid at premium rates to be counted as one (1) hour; and Section 2(b): All hours scheduled for or made available to the Employee by the Company but not worked by the Employee (including any period on leave of absence); provided, however, that when overtime work is offered and refused, only the excess of the available overtime hours over the number of hours actually worked will be considered as available hours and for the Employees who first refused such work; and Section 2(c): All hours not worked by the Employee because of any of the reasons specified in subsection 2(a) (4) of Article V; and Section 2(d): All hours not worked by the Employee which are in accordance with a written agreement between the Company and the Union or which are attributed to absenteeism of other Employees; Section 2(e): With respect to any Employee whose regularly scheduled Work Week is less than the standard Work Week (not to exceed 40 hours) for the shift on which the Employee works, the number of hours by which such Employee's regular Work Week is less than the standard Work Week (not to exceed 40); Section 2(f): All hours not worked by the Employee because of a change in shift resulting from a request of the Employee; Section 2(g): All hours not worked by the Employee because of a reduction in standard Work Week by written agreement with the Union; Section 2(h): All hours not worked by the Employee because of full or partial shutdown requested or agreed to in writing by the Union. Section 3. Determination of Amount Section 3(a): The Short Week Benefit payable to any eligible Employee: (1) For a Scheduled Short Work Week shall be an amount equal to the product of (i) eighty percent (80%) of his "Short Work Week Rate" multiplied by (ii) the number by which the number of hours in his/her standard Work Week (not to exceed 40) exceeds the number of his/her Compensated or Available Hours for such Week (with any fractional hour expressed as a decimal to the nearest tenth), determined as provided in Section 2 of this Article; (2) For an Unscheduled Short Work Week shall be an amount equal to the product of (i) eighty percent (80%) of his "Short Work Week Rate" multiplied by (ii) the number by which the number of hours in his/her 35

70 standard Work Week (not to exceed 40) exceeds the number of his/her Compensated or Available Hours for such Week (with any fractional hour expressed as a decimal to the nearest tenth), determined as provided in Section 2 of this Article; (3) "Short Work Week Rate" shall be the Employee's Average Hourly Earnings Section 3(b): For purposes of the Plan, a "Scheduled Short Work Week" with respect to an Employee is a Short Work Week which the Company schedules in order to reduce the production of such Facility, department or unit in which the Employee works, to a level below the level at which the production of such Facility, department or unit would be for the Week were it not a Short Work Week, but only where such reduction of production is for the purpose of adjusting production to customer demand. Section 3(c): For purposes of the Plan, an "Unscheduled Short Work Week" with respect to an Employee is any Short Work Week: (1) Which is not a Scheduled Work Week as defined in Article XII, Section 3(b); or (2) In which Employee returns to work from layoff to replace a separated or absent Employee (including an Employee failing to respond or tardy in responding to recall), or returns to work after a full Week of layoff in connection with an increase in production, but only to the extent that the Short Work Week is attributable to such cause. Section 3(d): For any short week with respect to an Employee which results both from the circumstances set forth in Section 3(b) as well as those in Section 3(c) of this Article XII, (i) the Benefit for the hours of the Short Work Week attributable to the circumstances set forth in Section 3(b) shall be calculated on the basis that the hours attributable to the circumstances set forth in Section 3(c) were Compensated or Available Hours and (ii) the Benefit for the hours of the Short Work Week attributable to the circumstances set forth in Section 3(c) shall be calculated on the basis that the hours attributable to the circumstances set forth in Section 3(b) were Compensated or Available Hours. The Benefit for such a Short Week shall be the sum of the Benefits calculated in both (i) and (ii) subject to the provisions of item (ii) of the Introductory paragraph of Section 1 of Article VII. Section 3(e): Any Short Work Benefit computed under the preceding Sections of this Article shall be subject to the provisions of Sections 4, 5 and 6 of Article VII. 36

71 Section 4. Method of Payment A Short Week Benefit shall be paid by the Company and charged to the Benefit Reserve Account. No application for such Benefit shall be required of the Employee except as otherwise provided in Section 5 of this Article. Any Short Week Benefit payable for a Week under the provisions of this Article XII shall be in lieu of any other Benefit payable under this Plan with respect to such Week except as otherwise provided under Section 1{g) of this Article XII. Section 5. Application for Determination If an Employee believes himself/herself entitled to a Short Week Benefit for a Week under this Article XII, which he/she does not receive on the date when Short Week Benefits for such Week are paid, he/she may make written application therefore in accordance with procedures established by the Company. The Company shall promptly determine the Employee's eligibility for a Short Week Benefit, and such Benefit shall be paid or denied in accordance with such determination. If the Company determines that an Employee is not entitled to a Short Week Benefit with respect to the Week for which application for such Benefit is made, it shall send prompt written notice thereof to him/her. Section 1. Term of the Plan ARTICLE XIII. GENERAL PROVISIONS This Seventeenth Amended Agreement on Supplemental Unemployment Benefits and the Plan established by the provisions of Article I through XII hereof shall continue in effect for a period of time ending on April 27, 2012, except as otherwise provided in, and subject to the terms of the Plan and so long as the Union continues to be the certified bargaining agent for the Employees <:overed by said Plan. Section 2. Obligations During Term of the Plan During the term of this Plan or Agreement neither the Company nor the Union shall request any change in, deletion from, or addition to the Plan or Agreement. Section 3. Changes Required to Obtain Rulings Notwithstanding any other provision of this Plan, the Company, with the consent of the Union, may during the term of this Plan make revision in the plan not inconsistent with the purpose, structure, and basic provisions thereof, which shall be necessary to obtain or maintain any rulings required under Article IX of the 37

72 Plan. Any such revision shall adhere as closely as possible to the languages and intent of the Plan. Written notice of any changes in this plan shall be given to the employment and immigration commission within thirty (30) days after the effective date of the change. Section 4. Duration and Termination Article of the Collective Labour Agreement shall apply to this agreement IN WITNESS WHEREOF the parties hereto have executed this Supplemental Unemployment Benefit Plan Agreement as of the twenty-eighth day of April, GATES CAN'AOA INC. /. /}~/} v vail ~~~/vi. 38

73