INDEX

ARTICLE ONE: BARGAINING AGENCY 2 ARTICLE TWO: EMPLOYER’S RIGHTS 3 ARTICLE THREE: WAGES AND CLASSIFICATIONS 5 ARTICLE FOUR: PAYMENT OF WAGES 6 ARTICLE FIVE: HOURS OF WORK, OVERTIME AND SPECIAL RATES 6 ARTICLE SIX: STATUTORY HOLIDAYS 13 ARTICLE SEVEN: SENIORITY 14 ARTICLE EIGHT: LEAVE OF ABSENCE 20 ARTICLE NINE: VACATIONS WITH PAY 22 ARTICLE TEN: SAFETY AND HEALTH 25 ARTICLE ELEVEN: TRAINING PROGRAM 25 ARTICLE TWELVE: PLANT COMMITTEE 28 ARTICLE THIRTEEN: GRIEVANCE PROCEDURE 28 ARTICLE FOURTEEN: ARBITRATION 29 ARTICLE FIFTEEN: STRIKES AND LOCKOUTS 29 ARTICLE SIXTEEN: TOOL INSURANCE 30 ARTICLE SEVENTEEN: HEALTH AND WELFARE 30 ARTICLE EIGHTEEN: TICKETS 33 ARTICLE NINETEEN: WORKING FOREMEN 34 ARTICLE TWENTY: CHARGEHAND 34 ARTICLE TWENTY ONE: DURATION CLAUSE 35

LETTERS OF UNDERSTANDING HOLIDAY SCHEDULING 36 APPRENTICE’S LIVING EXPENSE AND TRAINING ALLOWANCE 37 BIDDING FOR MILLWRIGHT TRADE AND SAWFILING TRADE 39 WEEKEND SHIFT AGREEMENT – PRODUCTION 40 LETTER OF INTENT RE: ARTICLE NINETEEN WORKING FOREMEN 43 SUPPLEMENT ONE JOB EVALUATION PROGRAM 44 SUPPLEMENT TWO CLARIFICATION OF ARTICLE SEVENTEEN, SECTION TWO 47

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MASTER AGREEMENT BETWEEN: WEST FRASER MILLS LTD. PACIFIC INLAND RESOURCES DIVISION (The Company) AND: NORTHERN INTERIOR WOODWORKERS’ ASSOCIATION (The Union) PURPOSE: The purpose of this agreement is to secure for the Company, the Union and the employees the full benefits of orderly and legal collective bargaining, and to ensure to the utmost extent possible the safety and physical welfare of the employees, economy of operation, quality and quantity of output, and protection of property. It is recognized by this agreement to be the duty of the Company and the Union and the Employees to cooperate fully, individually and collectively for the advancement of said conditions. The Company and the Union agree to abide by the terms set out in this agreement. The Union further agrees that it will at all times instruct its members to act in accordance with the terms contained in the agreement. The Company agrees in the exercise of the functions of management, that the provisions of this agreement will be carried out. All references to the male gender are deemed to include the equivalent female reference.

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ARTICLE ONE: BARGAINING AGENCY Section One: The Company recognizes “The Union” as the sole collective bargaining agent for the employees of “The Company”, except salaried employees, log scalers, office employees, forestry staff, and those employees with the authority to hire and discharge. Section Two: The Company and the Union will meet at such time and place as may be mutually agreed upon, for the purpose of discussing wages and working conditions, and adjusting any matters within the confines of this agreement which come within the scope of collective bargaining between employer and employee. Section Three: The company agrees that the bargaining authority of the Union shall not be impaired during the term of this agreement. The Company agrees that the only bargaining agent that they will recognize during the term of this agreement is that of the Union, unless ordered by due process of law to recognize some other authority. Section Four: The Company shall require all employees at the time of hiring to fill out a union card (to be supplied by the Union) and all benefit plan applications. All forms must be filled out prior to the completion of the new employee’s first pay period. Section Five: Union bulletin boards will be supplied by the Company and placed in the appropriate lunchrooms for the purpose of Union notices. These notices must be signed off by a member of the executive of the N.I.W.A.

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ARTICLE TWO: EMPLOYER’S RIGHTS Section One: The management and direction of the Company are vested exclusively in the management provided that the exercise of this right shall not result in discrimination. Section Two: The Company shall have the right to select its employees and to discipline them or discharge them for just cause. The Company agrees that an employee must have been properly warned prior to disciplinary action or discharge, unless the action of the employee is deemed to be of a serious enough nature to warrant immediate discharge. A. Discipline will be progressive in order to give an employee an opportunity to

correct his unsatisfactory performance.

Normal Disciplinary Procedure

The normal disciplinary procedure will be applicable in most situations, including but not limited to:

1. Absenteeism, lateness, leaving work early where the employee does not

have a valid excuse, leaving your workstation without permission, not punching timecard, horseplay.

2. Failure to follow communicated safe work procedures. 3. Failure to follow instructions (poor work habits or carelessness) while on

Company property. 4. Failure to wear personal protective equipment. 5. Arriving at work in an impaired condition (employee will be taken home

as well) in the opinion of Management.

Disciplinary Steps

First Step: A recorded verbal warning will be issued to insure that an employee understands any directions being given and the cause of a supervisor’s dissatisfaction. If the supervisor has reason to believe the employee did not understand a direction, more than one recorded warning can be given. The supervisor will keep a record of these recorded verbal warnings and the employee will be advised that the recorded verbal warnings are a part of his record.

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Second Step: Should further discipline be necessary, a written warning will be administered. The written warning will outline the subject matter of any previous recorded verbal warning and will include the disciplinary matter that is the subject of the written warning.

Third Step: Should further discipline be necessary, following the written warning, another written warning accompanied by a one (1) day suspension will be issued.

Fourth Step: Should further discipline be necessary, following the third step, it will consist of a written warning accompanied by a suspension of up to five (5) days (depending on the severity of the incident and the employee’s prior record). Suspensions will be served at the Supervisor’s discretion as soon as practicable.

Final Step: If further disciplinary problems arise with an employee, and depending on the severity, it may result in termination of employment.

B. Discipline records to be removed after four years. C. Employees have the right to Union representation at disciplinary meetings. Section Three: The Company shall exercise its right in a fair and reasonable manner.

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ARTICLE THREE: WAGES AND CLASSIFICATIONS Section One:

Upon ratification of this agreement, the wages of a ll hourly rated employees will be increased by one (1%) perce nt per hour. Effective July 1, 2011, the wages of all hourly rated employees will be increased by two percent (2%) per hour. Effective July 1, 2012, the wages of all hourly rated employees will be increased by two percent (2%) per hour. An across the board wage rate adjustment of $1.00 per hour will apply for all certified journeyman trades categories, and corresponding pro-rated rate adjustment for all non-certified journeyman trades categories and apprentice categories. This wage adjustment will apply to Power Engineers with the designation of 4th class or higher. This adjustment will be retroactive to January 1, 2011. Positions requiring the utilization of a 5th Class Power Engineer Certificate, shall receive a fifty cents ($0.50) per hour increase. This adjustment will be retroactive to January 1, 2011. Effective July 1, 2011, manual cheques will cease and all pay will be by electronic deposit.

A. All employees shall be assigned to appropriate classifications and paid at a

rate as provided for in the wage scale. Subject to the provisions of supplement one.

B. It is agreed by the Company that job rates will be presented to the Union

Secretary, for posting in conspicuous areas of the plant for the benefit of all employees. These job rates will become part of the Collective Agreement.

C. If the parties are unable to reach agreement for the wage and benefit

increases, it is agreed that they shall be determined by arbitration and chosen as set out in Article 14, Section One.

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Section Two: It is agreed that employees engaged on contract or piecework shall not receive less money than the equivalent of the hourly rate specified in the wage schedule for the number of hours worked in each pay period. ARTICLE FOUR: PAYMENT OF WAGES Section One: The Company will establish paydays in accordance with the Employment Standards Act and Regulations and furnish each employee with an itemized statement of earnings and deductions. Section Two: The Company will deduct monthly union dues from wages, if a dues deduction form is submitted by the Union, and these deductions shall be forwarded without delay to the Union Treasurer, together with a list of names of the employees for whom the deductions were made. Section Three: All newly hired employees will be required to provide the Company with their bank account number and location of their financial institution to allow for direct deposit of wages. The information provided by an employee will be kept strictly confidential. ARTICLE FIVE: HOURS OF WORK, OVERTIME AND SPECIAL R ATES Section One: Regular hours of work for production employees shall be: A. Eight hours on Monday, Tuesday, Wednesday, Thursday and Friday, making

a forty (40) hour week. When an additional Saturday or Sunday production shift is scheduled, employees who have not worked forty (40) hours during the previous week may pick up additional shifts to reach the forty (40) hour threshold and these shifts will be paid at straight time rate.

B. Overtime shall be paid at rate and one-half for all hours worked in excess of:

1. 8 in a day. 2. 40 in a week, but excluding from the calculations hours worked in excess

of 8 in a day.

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C. Double his regular wage for all work in excess of:

1. 11 in a day 2. 48 in a week, but excluding from the calculations hours worked in excess

of 8 in a day. D. If due to reasons beyond the control of the Company, such as in the case of

a breakdown, a regular work week from Monday to Friday cannot be maintained, employees, upon consultation and agreement, may work a maximum of eight (8) hours per day on other days than the regular work week without payment of overtime. If there is more than one day to be made up, the Union will be notified within a reasonable time frame.

E. If prior arrangement is made with a supervisor, employees may work

extended days to obtain his or her 40 hour work week in less than five (5) days at the regular shift rate. No overtime will apply for the longer work day. The Union will be notified of such arrangements.

F. Production work overtime shall first be offered to senior employees with the

ability to perform the work. In the case of an emergency, every effort will be made to use the senior employee with ability to perform the work.

G. Clean-up work due to Plant breakdown will be first offered to senior

employees with the ability to perform the work. H. It is agreed that in the event an employee is requested to perform an extra

shift or extended overtime, provisions will be made for he or she to acquire a necessary meal on Company time, and this shall apply only when there is no break between shifts. Extended overtime is defined as two (2) hours or more.

I. Temporary Jobs

Jobs created through unusual circumstances or seasonal positions, the duration to be mutually agreed upon by management and Union, and will be re-evaluated if the duration runs longer than originally indicated.

Section Two: The first shift is the recognized day shift. Hours worked outside the recognized day shift will be regarded as the second and third shifts. Premium rate of forty (40) cents per hour will be paid for the second and third shifts. A day shift employee working in excess of his regular shift will be paid at rate and one-half without the differential. Any employee on the second and third shifts working in excess of his regular shift will receive rate and one-half. For the purpose of the last sentence, rates will be plus forty (40) cents.

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Section Three: A. In such cases as millwrights, maintenance repair and construction

employees, the regular hours of work shall be five eight-hour days, with two days of rest each week, Monday through Saturday, except where mutually agreed between the Union and the Company. Such days will be consecutive days.

B. Overtime shall be paid at rate and one-half for all hours worked in excess of:

1. 8 in a day. 2. 40 in a week, but excluding from the calculations hours worked in excess

of 8 in one day. C. Double his regular wage for all work in excess of:

1. 11 in a day. 2. 48 in a week, but excluding from the calculations hours worked in excess

of 8 in one day. D. Sunday work shall be at a rate of time and one-half with the exemption of

watchmen and those people working a compressed work week. Section Four: A. Any employee reporting to work and finding no work available due to reasons

beyond his control, shall be entitled to two (2) hours pay at the usual rate. This shall apply unless the Company gives notice of cancelling said shift.

B. In the event the employee engages in work as normal at start of the shift, and

the mill or planer break down for the balance of the shift; he/she will be guaranteed four (4) hours work of some nature, as directed by his supervisor, or, has the option of leaving, if cleared through his foreman, and will receive pay for hours worked.

C. Such notice shall be considered to be given by an announcement over the

local radio stations of Smithers. Such notice shall be given for all shifts one (1) hour prior to shift starting unless it is beyond the Company’s ability to advise the radio station in time for broadcasting at the regular scheduled time, such notice will be given at ten (10) minute intervals for the one hour period.

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Section Five: Employees are required to punch in to work five (5) minutes before actual starting time. The Company is allowed to deduct one-half hour’s pay if employee arrives for work later than starting time. Section Six: Employees will be provided two (2) ten (10) minute breaks, one within each half of a shift at a time designated by the Company, which shall not be later than an hour before the end of each half shift, except in the case of a shift being less than eight (8) hours in duration. Section Seven: Employees called back to work after completion of their regular scheduled shift shall be paid a minimum of three (3) hours at rate and one-half. Section Eight: When an employee is unavoidably prevented from reporting for his/her shift, if reasonably possible, he/she must give notice to their foreman, or at the Company office, at least two (2) hours before the shift commences. Section Nine: Employees shall receive at least twenty-four (24) hours’ notice prior to a permanent shift change. If necessary to change shift with less notice, the first shift worked will be at time and one-half. Section Ten: The foregoing provisions of Article Five shall not be construed as guaranteeing to any employee any number of hours of work per day or per week.

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Section Eleven: GRAVEYARD SHIFTS: HOURS OF WORK A. Maintenance crew working hours are as follows: Monday to Thursday

staggered start times to commence work at 11:30 p.m. or 12:00 midnight, with staggered completion times of 7:00 a.m. or 7:30 a.m. The Sunday p.m. commence work at 12:00 midnight or 12:30 a.m. with completion of shift at 7:00 a.m. or 7:30 a.m. Each shift shall have a one-half (1/2) hour lunch break and one (1) ten (10) minute coffee break, and receive eight (8) hours pay for the said shift. A schedule of staggered start and completion times will be posted in advance.

B. Production Graveyard: Sawmill or Planer working hours are as follows:

Sunday to Thursday commence work at 12:00 midnight, with completion of shift at 7:00 a.m. Each shift shall have a one-half (1/2) hour lunch break and one (1) ten (10) minute coffee break, and receive eight (8) hours pay for said shift.

C. In the event an employee is more than one-half (1/2) hour late for graveyard

shift, he will only receive payment for actual hours worked. He or she forfeits the incentive payment for the graveyard shift on that day.

Section Twelve:

Alternate Shift Scheduling

Management shall have the right to implement the following shift schedules:

• 4-10’s between Monday and Thursday • 4-10’s between Tuesday and Friday • 4-10’s Split Monday-Friday • 3-12’s Friday-Sunday • 3-12’s Saturday-Monday

When alternate shift schedules have been implemented in accordance with the above, the following overtime provisions will apply:

A. Rate and one-half shall be paid for the following:

i) After the completion of the regularly scheduled shift.

ii) Hours worked in excess of forty (40) hours per week or forty (40) hours average when there is an averaging period.

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iii) All hours worked on an employee’s scheduled rest day, unless a change in rest day has been agreed to between the employee and the Company.

iv) All hours worked on Sunday except those excluded in the casual section.

B. Double straight time rates shall be paid for the following:

i) All hours worked in excess of eleven (11) in any day of the week except for twelve (12) hour shifts. For twelve (12) hours shifts, all hours in excess of the regular shift.

ii) All hours worked on Sunday when Sunday is also an employee’s scheduled rest day, if the employee has worked forty (40) straight-time hours in the preceding six (6) days, unless a change in rest day has been agreed to between the employee and the Company.

iii) For those employees that complete the alternate weekend shift, the second overtime shift worked in a given week outside the shift schedule will be paid double-time for hours worked.

C. The parties must mutually agree on resolution of issues such as:

i) Details of shift i.e. start and stop times. This is not intended to restrict the Company’s ability to modify the details of shifts for legitimate operational reasons.

ii) Maximum length of shifts for physically demanding work. Accident prevention is a factor to be taken into account in determining shift lengths.

iii) Bidding for a weekend shift is entirely voluntary. No employee will be forced to work the weekend shift.

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General Principles

When these alternate shift schedules are in effect other provisions of the Collective Agreement will be administered on the principle that an employee will not lose or gain any benefits over his normal five-day schedule.

1. The Company agrees that alternate shift schedules will not be introduced where the intention is to increase the use of casual employees in place of regular employees.

2. Different parts of an operation may be scheduled on different shifts.

3. This Section shall not change existing operational alternate shift agreements, unless mutually agreed to by both parties. The Employer will not introduce any alternate shift that has the result of replacing an existing operational alternate shift. An existing alternate shift agreement will cease to exist if it has not been operational for one year.

4. Earned vacations will be scheduled on the same basis as days and hours worked under the alternate shift schedule.

5. Other Articles of the Collective Agreement, which provide benefits after eight (8) hours, are extended by the amount the regular hours of work have been increased beyond the eight (8) hours per day.

6. An employee whose rest days are changed by the Company under an established alternate shift schedule shall receive rate and one-half for work performed on his rest days unless a change in rest days results from the application of seniority or has been agreed to between the employee and the Company.

7. There shall be no premium pay paid to any employee whose rest days are changed because of the implementation of an alternate shift schedule.

8. The Company will not change an employee’s work schedule to avoid a statutory holiday.

9. For ten (10) hour shifts, rest periods will be one (1) ten (10) minute break and one (15) minute break plus a one-half (1/2) hour unpaid meal break.

Or

Three (3) ten (10) minute breaks and one twenty five (25) minute unpaid meal break dependant on operational needs.

10. For twelve (12) hour shifts, rest periods will be one (1) ten (10) minute break and one fifteen (15) minute break plus a one-half (1/2) hour paid meal break.

11. Remembrance Day, Christmas Day, Boxing Day and New Year’s Day are operational down-days. Production work on Statutory Holidays will be bid by seniority with ability to perform the work.

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12. Statutory and Floating Holidays will be paid as per the employee’s regular schedule.

13. Bereavement Leave and Jury Duty shall be paid consistent with Article IX. These days will be paid at the regular daily wage consistent with the work schedule.

14. Shift Differential shall be paid only for those hours worked outside the recognized dayshift for those employees working the alternate schedule in effect for that crew working in that part of the operation.

15. The Company will provide notice of two weeks prior to the introduction of and/or the discontinuance of any alternate shift, except where a change in shift schedule is due to unforeseeable circumstances not in the control of the Company.

16. For those employees working an alternate shift, the thirty (30) working days referenced in the probationary period section of the Seniority Article will be changed to two hundred and forty (240) working hours.

17. On a split 4x10 shift, the schedule will delineate the employee’s rest day.

18. All other provisions of this collective agreement will apply except for those that are modified by this section.

a) Management and the Plant Committee shall have the right under the terms of the Collective Agreement to agree upon and implement other schedules which, except for production shifts in manufacturing operations, may include Sundays without overtime penalty, provided the principle of the forty (40) hour week is maintained over an averaging period. Rate and one-half shall be paid for hours worked on Sunday unless otherwise agreed by the parties.

ARTICLE SIX: STATUTORY HOLIDAYS Section One: A. The following statutory holidays:

Victoria Day, Good Friday, Canada Day, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day, Boxing Day, New Year’s Day and British Columbia Day shall be paid at employee’s regular day (first shift) rate. In the event the above statutory holiday falls on a Saturday or a Sunday, the said holiday may be observed on either the preceding Friday or the following Monday. The Company and Union will be in mutual agreement. In addition to this, any statutory holiday declared by the Provincial or Federal Government in future shall be a paid holiday.

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B. Any non-swing personnel shall be paid at employee’s regular rate. Section Two: A. Any employee, to qualify for holiday pay, must have been on the payroll thirty

(30) calendar days immediately preceding the holiday and must have worked his last regularly scheduled work day before and first regularly scheduled work day after the holiday. Unless absence on one of these days is due to a compensable injury or due to sickness (proof must be furnished by a doctor, if requested), or employee is on leave of absence with pay. This shall not apply to part-time personnel.

B. If an employee has received permission for his or her absence on their last

regular scheduled work day immediately following the paid holiday from their immediate Supervisor, they will be considered eligible for the paid holiday.

Section Three: A. Piecework employees shall receive pay for statutory holidays for which they

qualify, based on the daily average earnings for the days actually working during the previous thirty (30) working days.

B. Hourly rated employees working on a paid holiday shall receive rate and one-

half for hours worked in addition to the pay they may be entitled to. ARTICLE SEVEN: SENIORITY Section One: A. For the purpose of this contract, seniority shall apply upon completion of a

probationary period of thirty (30) working days in ninety (90) floating calendar days. During this probationary period, the employee shall be considered a temporary employee without seniority rights.

B. Upon completion of the employee’s probation period the employee’s seniority

will be backdated to the beginning of the ninety (90) day floating period. C. Seniority shall cover such matters as:

1. Job bidding. 2. Lay-off coverage. 3. Benefit coverage package – to begin the first of the month following the

completion of the probationary period. 4. Holiday rates.

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D. It is understood, during the term of this agreement that the following part-time

employees will not be eligible for any benefits or Union membership: 1. Students and Weekend Clean-up.

Section Two: A. The Company recognizes the principal of Union Seniority, competency

considered, and will post job openings for three (3) working days on the same basis, except where the job is covered by the training program as described in Article Eleven – Training Program.

B. The Company shall post and bid all apprenticeship vacancies unless it is

successfully demonstrated to be necessary to fill said vacancies with a certified person.

C. It is agreed that all straight-day shift jobs, even if Group 4 (basic rate) or less,

shall be posted in the manner described in Section Two (A). Tradesmen positions are exempt from this posting requirement. This in no way limits the Company’s right to re-schedule or change shifts.

D.

1. All permanent vacancies shall be posted with the exception of tradesmen positions and Group 4 positions unless covered by (C) above. The jobs will be posted seniority, competency considered. In the event that the Company adds a shift, employees will be entitled to exercise their seniority to obtain any Group 4 positions on that added shift.

2. Temporary positions of less than three (3) weeks shall not be posted. Temporary positions of greater than three (3) weeks but less than ninety (90) days shall be posted and awarded to the experienced senior person.

3. Temporary positions created due to holidays or illness shall not be posted.

4. In filling the non-posted vacancies, the senior qualified employee on that shift, competency considered, shall have preference.

5. Temporary positions, at the option of management, may be bid as permanent positions prior to the closing of the ninety (90) calendar day period. An employee who has held the temporary position and who is unsuccessful bidding on the position when it becomes permanent or gives up the temporary position shall return to the job he previously held. The successful bidder on the permanent job shall receive training as per Article Eleven, Section Three.

6. Ninety (90) calendar days after a temporary posting has closed, it shall become full-time and posted.

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Section Three: A. When making promotions to salaried positions, the Company agrees to give

due consideration to length of working service, competency and ability. B. In the event of a reduction of forces, the last person hired shall be the first

released (Union seniority to be in effect). C. In the event of a reduction of forces (e.g. a position or shift is reduced or

eliminated or an employee is displaced from his position) the Company shall notify the Union and the individual employee(s) displaced as a result of the reduction.

D. Any employee displaced as a result of the reduction of forces, as described

in (C) above, shall have the right to exercise their seniority in the following way:

1. An employee may apply their seniority to bump into another position,

competency considered. Competency will be assessed in light of the familiarization periods set out in Section Three, (D), (2) and (3). a) Bumping will proceed downwards until all positions are filled. b) If an employee bumps into another position, they will not have a

further opportunity to bump unless the position they bump into is reduced or eliminated.

c) If the displacement of an employee is for less than one (1) year, and the employee has bumped into another position, the employee shall return to his original position when that position is restored or becomes vacant.

d) If the displacement of an employee is for a period of greater than one (1) year, the position the displaced employee bumped into shall become his permanent position.

e) If the employee’s original position comes available after the one (1) year period following the employee’s displacement from the position, it will be reposted.

f) The bumping shall follow the process of junior person in position first, senior last.

2. If the reduction of work is for more than 4 work days, there will be up to 4

hours of familiarization and monitoring (not to be considered a training program, as outlined in Article Eleven, Section Three) to determine if the employee is able to perform the job.

3. If the reduction of work is for 20 or more work days, there will be up to two (2) days of familiarization and monitoring (not to be considered a training program as outlined in Article Eleven, Section Three) to determine if the employee is able to perform the job.

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4. If, following the familiarization period, the employee does not have the

ability to perform the job, he/she will be taken off the job and placed in an entry-level job, seniority permitting.

5. In the event that the scheduled reduction of the work force lasts longer than originally planned, an employee, competency considered, who accepted lay-off can apply their seniority to bump into a job that continues into the extended period of the reduction. In such a case, sections 1 to 4 apply.

6. An employee may accept a lay-off for the period of the reduction. In these circumstances, the employee can return to work during the shut-down by notifying the Company that he/she wants to be called back to work if a job is available and his or her seniority entitles him to a job, but will not be able to exercise his seniority to bump.

Section Four: Company notice of technological (material) changes of facilities shall be given, with as much advance notice as is reasonably possible. Employees displaced shall receive same rate of pay for a period of six (6) months from time of notice. Employees discharged or laid off because of technological change or automation shall be entitled to severance pay of one (1) week’s pay for each fifty-two (52) weeks of service with the Company, and loses all seniority and call-back rights. If severance pay is foregone, he keeps seniority and callback rights

a) Permanent Plant Closure

The Company agrees that employees affected by permanent plant closure shall be given sixty (60) days notice of closure.

Employees terminated by the Company because of permanent closure of the plant shall be entitled to severance pay equal to seven (7) days pay (eight hours per day) for each year of continuous service with the Company, and thereafter for partial years in increments of completed months of service with the Company.

If a plant is indefinitely closed, and is subsequently permanently closed, those fulltime employees laid off at the time of the indefinite closure or subsequently laid off, will be entitled to the severance provisions provided for above based on their seniority at the time of their layoff.

b) Permanent Partial Plant Closure

The Company shall notify the Plant Committee not less than sixty (60) days in advance of intent to institute permanent partial plant closure.

A permanent partial plant closure for a lumber manufacturing facility is defined as the permanent cessation of a Planermill, Sawmill, or Kilns.

Following the application of seniority, employees who are not able to obtain an alternative position in the operation and are therefore laid off are entitled to

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severance pay of seven (7) days pay (eight (8) hours per day) for each year of service with the Company. Acceptance of severance pay results in termination of employment.

If a Planermill, Sawmill or Kilns is indefinitely closed, and is subsequently permanently closed, those regular fulltime employees who were initially laid off in accordance with the preceding paragraph, and have not obtained an alternative position during the period of indefinite closure, will be entitled to severance pay as provided in the preceding paragraph based on their seniority at the time of their layoff. Acceptance of severance pay results in termination of employment.

Section Five: The Company will provide updated Seniority Lists of all employees in the bargaining unit during the month of January of each year. The Seniority Lists will be approved and signed by the Company and the local Union President. The Company will monthly advise the local Union of any changes in the Seniority Lists and any changes will be endorsed by both the Company and the local Union. Seniority Lists must be posted monthly. Section Six: It is mutually agreed that when employees are to be rehired after a lay-off, it shall be done on the basis of the last person released shall be the first person re-employed. Section Seven: It is agreed that in case of emergency, the application of seniority may be postponed for such a period of time as may be necessary, upon consultation with the Union executive. Section Eight: The seniority of an employee who is transferred from a supervisory position to the bargaining unit shall not include his time of employment in a supervisory capacity. There will be a six (6) month trial period, after which the employee may either go back into the union and retain his frozen seniority at which he left or remain on staff.

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Section Nine: Laid-off employees shall retain their seniority rights on the following basis: A. Employees with less than one (1) year Union seniority shall retain their

seniority rights for a period of seven (7) months. B. Employees with one (1) or more years of Union seniority shall retain their

seniority for one (1) year. C. The above (A) & (B) will extend their seniority retention after completing a

further period of fifteen (15) working days in a thirty (30) day floating period. D. If it is found by the Company that a laid-off employee refuses a call back to

work, the Union is to be notified immediately for verification of the Company’s findings and the employee will be terminated immediately.

E. It is the employees’ responsibility to leave current phone numbers with the

payroll department. Employees that cannot be reached can be considered as refusing a call back. After attempts by a Supervisor to call in an employee for work and the employee cannot be reached, the Union will be notified. After which they will also try to contact the employee along with the Supervisor. If an employee cannot be contacted, a Registered Letter will be sent and if no word or contact is made after seven days, the employee will be terminated.

Section Ten: Any employee who is absent without leave for a period of three (3) consecutive days and cannot give just reason for such absence, shall be subject to suspension and/or dismissal. Section Eleven: A. Employees unwilling to accept membership in the Union shall have no

seniority rights. A waiver form shall be signed by the employee. The form shall state the advantages of becoming a Union member.

B. In the event an employee does not accept membership in the Union, Article

Seven (7) Section One (C) (1) & (2) would not apply and he/she would be the first released in the event of a lay-off.

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Section Twelve: In the event of multiple hiring (more than one employee on the same day) seniority shall be determined by drawing names with a Union Representative present. Section Thirteen: The Company will not bring a contractor into the plant: A. Which directly results in the lay-off of employees. B. To do the job of employees on lay-off. C. The Company will notify the Union in advance, wherever practicably

possible, of work to be performed by contractors in the Plant. ARTICLE EIGHT: LEAVE OF ABSENCE Section One: Any employee desiring leave of absence must obtain permission in writing from the Company for such leave, and be sanctioned by the Union executive for said leave. If an employee wishes an extension of their vacation over and above the entitlement they qualify for, or are on a non-paid leave of absence, he or she will not qualify for any paid holidays during that absence. Section Two: The Company will grant leave of absence to employees who are suffering injury or illness, subject to a medical certification if requested by the Company. Section Three: A. Upon adequate notice the Company will grant leave of absence for up to six

(6) months to employees who: 1. Are to serve as Union Representatives and are required to attend Union

meetings. 2. Are to serve on Union Negotiating Committees or perform any other

duties on behalf of the Union.

Seniority shall accumulate during the employee’s leave of absence. Where an employee requires a short term leave of absence to attend Union

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meetings, conferences or conventions, the Company shall receive written notice from the Union at least five (5) days prior to the Leave of Absence commencement date, in order that the employee may be replaced by a competent substitute.

B. The Company shall pay elected Union members his/her regular day-shift rate

for wages lost while attending to Union-Company business. This refers to mutually agreed upon meetings or business.

C. The Union shall pay for wages and benefits lost to the Union Representatives

conducting Union business as noted in A. Section Four: A. The Company will grant paid leave of absence for employees called for jury

duty, coroners duty, Crown or coroner’s witness at a rate of the employee’s regular day-shift rate of pay except for non-swing shift personnel who will be paid at employee’s regular shift rate of pay for an eight (8) hour day. The Company will deduct payments made by the Crown to the employee.

B. The Company will grant an appropriate leave of absence when death occurs

in the employee’s immediate family, for which leave he/she will be compensated at his/her regular day-shift rate of pay, except for non-swing shift personnel who will be paid at employee’s regular shift rate of pay for a maximum of three (3) consecutive working days, at the time of death.

The “Immediate Family” includes the employee’s spouse, mother, father, brothers, sisters, children, mother-in-law, father-in-law, daughters-in-law, sons-in-law, grandchildren, grandparents, grandparents-in-law, step-parents, and step-children. For the employee’s brothers-in-law and sisters-in-law, the employee will be compensated for a maximum of one (1) day.

Section Five: In addition to leaves to which an employee may be entitled under the Employment Standards Act, the Company will grant leave of absence up to a maximum of six (6) months without pay to employees for compassionate reasons or for educational or training (related to advancement in the forest industry) or extended vacation purposes, conditional on the following terms: a) That the employee applies at least one (1) month in advance unless the

grounds for such application could not reasonably be foreseen. b) That the employee shall disclose the grounds for application.

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c) That the Company shall grant such leave where a bona fide reason is advanced by the applicant, or may postpone leave for educational or training purposes where operational needs dictate.

d) That the Company shall notify the Plant Committee of its decision in

respect of any application for leave under this Section. e) Employees on extended leave pursuant to this provision will pay the costs

of their own MSP, Extended Health Benefits, and Dental Plan premiums.

f) Vacation must be taken prior to the commencement of the leave. Section Six:

Family Responsibility Leave:

An employee is entitled to up to 5 days of unpaid Family Leave during each employment year to meet responsibilities related to:

a) the care, health or education of a child in the employee’s care, or b) the care or health of any other member of the employee’s immediate

family. ARTICLE NINE: VACATIONS WITH PAY Section One: A. Employees with one (1) completed year of service to three (3) completed

years of service with the Company shall receive two (2) weeks vacation with pay at the rate of four and one-half (4 ½ %) of earnings.

B. Employees with three (3) completed years of service to six (6) completed

years of service with the Company shall receive three (3) weeks vacation with pay at the rate of six and three-quarters percent (6 ¾ %) of earnings. The third week of vacation may be taken, but does not have to be consecutive with the vacation period, but at a time convenient to all concerned.

C. Employees with six (6) completed years of service to eleven (11) completed

years of service with the Company shall receive four (4) weeks vacation with pay at the rate of nine percent (9%) of earnings. The additional two (2) weeks vacation may be taken when convenient to all concerned, but does not have to be consecutive with the vacation period provided by the Company.

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D. Employees with eleven (11) completed years of service to sixteen (16) completed years of service with the Company shall receive five (5) weeks vacation with pay at the rate of eleven and one-quarter percent (11 ¼%) of earnings. The additional three (3) weeks vacation may be taken when convenient to all concerned, but does not have to be consecutive with the vacation period provided for by the Company.

E. Employees with sixteen (16) completed years of service to twenty-three (23)

completed years of service with the Company shall receive six (6) weeks vacation with pay at the rate of thirteen and one-half percent (13 ½%) of earnings. The additional four (4) weeks vacation may be taken when convenient to all concerned, but does not have to be consecutive with the vacation period provided for by the Company.

F. Employees with twenty-three (23) completed years of service and greater

with the Company shall receive (7) weeks vacation with pay at the rate of fifteen and three-quarters percent (15 ¾%) of earnings. The additional five (5) weeks vacation may be taken when convenient to all concerned, but does not have to be consecutive with the vacation period provided for by the Company.

G. Where an employee makes a written request for holiday pay, it shall be paid

out to the employee on the next pay period following the date upon which the request was received by the Company provided the request was made before the payroll cut-off date for that period. Employees are entitled to make four written requests for holiday pay in addition to the regularly scheduled pay-outs.

Section Two: A. Any employee with three (3) or more months of continuous service with the

Company is entitled to a one (1) day floating holiday, to be arranged at a time suitable to the employee and the Company; also, this floating holiday must be mutually agreeable with the employee’s immediate supervisor to be recorded.

B. If an employee is required to work on his/her floating holiday after a definite

date has been designated for such holiday, the employee shall be paid overtime for such work at the rate of time and one-half unless notice is given seven (7) days or more prior to the holiday. The employee will then be entitled to take the holiday with pay at a later date to be mutually agreed upon. The employee shall have the right of refusal to work after a definite date has been set. Overtime shall not be a factor in granting floating holidays.

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Section Three: Vacations with pay for employees, engaged on piecework rate, shall be based on the daily average earnings of the period worked. Section Four: A. Vacations for employees shall be taken at such times as is mutually agreed

upon by Union committee and Company. B. Union seniority shall be in effect up to a period of two (2) months in advance

of scheduled holiday. After that time, holidays will be on a first come, first serve basis. For more information, please refer to the Policy Letter on Holidays.

Section Five: Retirement It is the Company’s policy that employees retire at age 65. If the employee chooses early retirement, they are entitled to a payment based on years of continuous service as follows: $/Year of

Age Continuous Service

60 $100

61 $ 80

62 $ 60

63 $ 40

64 $ 20

65 $ 0

The Retiring Bonus will only be made available to those employees aged 55 and older as of the date of 2011 ratification.

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ARTICLE TEN: SAFETY AND HEALTH Section One: Working safely is a condition of employment at Pacific Inland Resources. The Company and employees will cooperate to assure safe working methods and conditions and devise plans for the furtherance of safety measures. Costs to be borne by the Company. Section Two: A. An accident prevention committee will be formed. Members of the committee

shall be designated in equal number by the employees and employer. B. The Union shall elect its members for the Safety Committee and each

representative shall do safety tours and attend monthly Safety Meetings. Each representative shall have at least one year’s experience in the Plant. They shall also be part of accident investigations.

Section Three: A. Safety meetings will be held during normal working hours. Employee’s time

will not be deducted for attending such meetings or investigations into accidents. Employees attending these meetings when not on shift shall be paid two (2) hours straight time rate for their attendance.

B. The employees agree to abide by the safety rules as laid down by the

Company and/or The Workers’ Compensation Board. The Company will review the light duty program with Plant Committee and Safety Committee. ARTICLE ELEVEN: TRAINING PROGRAM Section One: The Company agrees to pay the cost of training individuals in such classifications as may be agreed upon between the parties. Section Two: A. Selection of trainees to be on the basis of seniority, competency considered. B. If, during the training period, the trainee wishes to discontinue training, or

fails to qualify, he shall return to the job previously held by him.

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C. Rates of pay to apply to trainees during the training period to be the lessor of the employee’s regular job rate or the established rate for the job for which they are being trained.

Section Three: A. The first twenty (20) working days after filling the posting are considered

probationary. During this time the employee may return to his/her former job, or the Company may decide the employee cannot fulfill the job requirements and transfer the employee back to his/her former job.

B. Where the applicant declines the job or was unsuccessful, during the twenty

(20) working day period, the next senior applicants on the job posting shall be awarded. The second and subsequent applicants selected shall have the right to begin their training within twenty (20) working days.

C. Any employee who successfully bids and qualifies for a job cannot bid

another position for a six (6) month period. This limitation shall not apply where a person’s position is reduced or eliminated.

D. Tradesmen wishing to bid out of the maintenance department may only bid

on full-time positions, not spare or temporary positions. E. An employee is not entitled to more than three (3) successful bids in a one

(1) year period. F. The Company shall notify the Union Secretary in writing of the applicant

selected and the names of the other applicants within five (5) working days of the selection.

G. Bid sheet language will reflect, among other things, the difference in duration

of bid sheets for temporary and permanent postings. 1. Permanent Postings:

Bid sheets shall be in effect for four (4) months from the date of the posting or until there is a successful applicant.

2. Temporary Postings: Bid sheets shall be in effect for ninety (90) calendar days from the date the posting closes.

H. An employee may make an application for any job, regardless of whether or

not that job is vacant. His/her application will be kept on file for one (1) year or until the job is posted (whichever comes first), after which they must re-apply.

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I. Management may declare a person(s) qualified prior to the completion of the 20th day of their probationary period and then that person falls under Section Three (C). The six-month period referred to in Section Three (C) runs from the date the employee was awarded the job posting.

Section Four: A. Company agrees to pay for the cost of apprenticeship training (including

tuition fees), travel, living expenses and wages at regular day-shift rate while at trade school.

B. The employee will be paid as laid out in the Company Policy regarding

training allowance. C. The Company will deduct any payments the employee receives from training

allowance. D. If an apprentice fails to pass an apprenticeship exam they may be given a

paid training leave of absence to attend apprenticeship school a second time depending on the upgrading required. Should the employee refuse, or if they are unsuccessful a second time, the employee may be taken out of the apprenticeship program and placed in an entry level position, seniority permitting.

Section Five: For any other positions (trades or production) not covered separately above, the Company and the Union shall meet to determine the length of the training program. Section Six: Employees deemed to be the successful bidder shall have the opportunity to begin their training within twenty (20) working days of the closing date of the bid, unless mutually agreed by the Company and the Union. This can be extended for extenuating circumstances. See attached Letters of Understanding re: Article Eleven.

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ARTICLE TWELVE: PLANT COMMITTEE Section One: The Union shall elect a Plant Committee, consisting of three (3) stewards. Members shall be elected on the departmental basis. Additional members may be added to the Plant Committee by mutual agreement. The Union shall inform the Company in writing of any changes in the make-up of this committee. Section Two: The Plant Committee shall deal with all grievances and all other matters related to the function of the Union as representative of all the employees. Upon the request of either party of this agreement, a meeting of management and the Plant Committee shall be held. It is understood that such meetings will be held on a regular basis in order to facilitate the relationship between the two (2) parties and to assist the Union in adequately representing the employees. ARTICLE THIRTEEN: GRIEVANCE PROCEDURE Section One: When an employee has a grievance, he shall, with the assistance of a steward, discuss it with his Foreman within ten (10) work days after the date on which the alleged injustice took place. If not settled in five (5) working days, it shall proceed as outlined in Section Two. Section Two: A. If settlement is not reached by the procedure outlined in Section One, the

Plant Committee shall take up the matter with the Mill Superintendent by a written form. The Mill Superintendent shall deal with the grievance within five (5) working days after receiving the grievance.

B. Further to this, if the grievance is not settled, it will then be taken up with the

Union Executive and the Company Manager within ten (10) working days after both parties have received the grievance.

C. If settlement is not reached at this stage, the grievance shall be dealt with by

arbitration as provided herein.

D. If notice that a grievance is being advanced to the next stage under Section 2(A) or (B) is not given within fourteen (14) days after completion of the preceding stage, then the grievance shall be deemed abandoned, and all rights to recourse to the grievance procedure shall be at an end. The fourteen (14) day limit may be extended by mutual consent of both parties.

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ARTICLE FOURTEEN: ARBITRATION Section One: In case of any unsolved grievance or of any dispute arising regarding the interpretation, application, operation or any alleged violation of this agreement, including any questions as to whether any matter is arbitrable, the matter shall be determined in the following manner: Either party may notify the other party in writing by registered mail of the questions to be arbitrated and the name and address of its chosen representative for the Arbitration Board, the members of this Arbitration Board must be disinterested parties. After receiving such notice and statement, the other party shall, within three (3) days, appoint an arbitrator and give notice in writing of such appointment and the name and address of its arbitrator. The two arbitrators shall then appoint a Chairman within ten (10) days, and the Chairman shall form the Arbitration Board. If they cannot agree on the appointment of a Chairman, the Minister of Labour will be asked to make this appointment. They must hand down their decision within fifteen (15) days of their appointment, unless this period is extended by mutual agreement between the two parties of this agreement. The decision of the Board shall, by the majority vote, be final and binding upon the parties of the first and second part. Section Two: The parties of the first and second part will each bear expense and charges of its own representatives on any Arbitration Board, and shall bear in equal proportion the expenses and allowances of the Chairman, stenographic and secretarial expenses, etc. ARTICLE FIFTEEN: STRIKES AND LOCKOUTS The Union agrees that it will not cause, promote, sanction or authorize any strike or authorize any sit-down, slow-down, sympathetic strike or other interference with work by the employees for any reason whatsoever. And the Company agrees that it will not cause, promote, sanction or authorize any lockout. Both parties agree that they will adhere to the grievance and arbitration procedure to settle all disputes.

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ARTICLE SIXTEEN: TOOL INSURANCE The Company at its own expense shall insure for damage or loss caused by fire or flood, the tools of the tradesmen (millwrights, electricians, mechanics, sawfilers and foremen) which are required in the performance of their work. This provision for tool insurance shall also apply to loss by theft where the tools are stored in a designated place of safety within the control of the Company and there is a forcible breaking and entering. The insurance coverage provided shall be subject to a deductible of $50.00 in respect to each employee’s claim. The employees agree to provide to the Company a list of their tools required for the performance of their duty and in respect to tool insurance coverage. ARTICLE SEVENTEEN: HEALTH AND WELFARE A. The company agrees to provide the following benefits for its employees at no

cost to the employee as provided in P.I.R.’s Benefit Plan Booklet. 1. Medical – Medical Services Plan of BC.

2. Dental Plan

Effective October 1, 2000 Plan A 85% Plan B 60% Plan C 60% $3000 lifetime maximum.

3. Referral Transportation Accommodation

4. Life Insurance

$110,000 effective the first day of the month following ratification.

$120,000 effective July 1, 2012

5. Accidental Death and Dismemberment Insurance in the amount of:

$110,000 effective the first day of the month following ratification.

$120,000 effective July 1, 2012

6. Extended Health - Life time maximum $100,000 a) Vision Care, $350 every two years per employee and per eligible

dependent effective October 1, 2007.

7. Weekly Income a) $480 a week effective October 1, 2006 for new claims incurred after October 1, 2006.

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8. Long Term Disability b) $1800/month effective October 1, 2006 for new claims incurred after

October 1, 2006.

9. Pension Plan a) $60 per month for each year of continuous credited service up to

September 30, 2000. b) $65 per month for each year of continuous service from October 1,

2000 to December 31, 2003. c) $70 per month for each year of continuous future service, effective

January 1, 2004.

10. Company Travel Accident Insurance.

11. Dental Coverage

Amend coverage to provide for recall and cleaning checkups every 9 months.

B. Eligibility for all Benefits:

The first of the month following completion of the probationary period as defined in Article 7, Section One (A) & (B).

1. If the employee’s application is not received by the eligibility date, the

effective date will be the 1st of the month following receipt of application by office.

2. Employees re-hired after a layoff within their recall time period will be

required to serve ten (10) working days per month before renewing their eligibility for benefits. Upon completion of this period, benefit coverage will commence on the 1st of the month following.

C. Termination of Benefit Coverage:

1. In the event of a termination (quit or fired), all benefits shall cease at date of termination except medical and dental, which will cease at the end of the month in which they are terminated.

2. In the event of a lay-off, all benefit coverage will cease:

a) At the end of the month following the date of lay-off if the employee has less than one-year seniority.

b) At the end of six (6) months from the date of lay-off if employee has one year or more seniority.

D. For further benefit coverage information, please refer to P.I.R.’s Benefit Plan

Booklet available from the Union Secretary or the Company payroll department.

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E. Any or all benefits provided for by the Company shall not be considered

compulsory. Any employee who elects to refuse said benefits is required to sign a waiver form stating reason for refusal.

Section Two: Sick Leave It is recognized that the provision of sick leave is for the sole purpose of insuring the employee of a portion of income during the five (5) days waiting period of the existing plan now in effect and laid out in P.I.R’s Benefit Plan Booklet. Any employee on authorized sick leave shall be paid at the employee’s regular day-shift rate at the time of sickness, except non-swing personnel who will be paid at employee’s regular rate of pay. It is the responsibility of each employee to advise his immediate foreman or area superintendent as soon as possible of his inability to perform his regular duties and probable length of absence. The sick leave provision shall tie in directly to the Canada Life Sickness Benefits Plan in P.I.R’s Benefit Plan Booklet and shall not be considered as booked time or floating holidays. For the purpose of this agreement, sick leave as described above, shall be one (1) day for every four (4) months to give three (3) days in a rolling twelve (12) month period, as clarified in Supplement Two.

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ARTICLE EIGHTEEN: TICKETS Section One: FIRST AID TICKETS First Aid Attendants shall receive their job rate of pay plus the ticket premium rate of pay. The premium rates are as follows: Level Two ......................... $0.50 Level Three....................... $0.85 The above premium will not be available to employees until they have been in the employ of the Company for a one-year period. Nothing in this provision will interfere with the Company’s ability to comply with the Workers’ Compensation legislation. Section Two: GRADING TICKETS A. The holders of grading tickets, when not actively grading, shall receive the

job rate for the position they are holding and will receive a premium for the grading ticket as follows:

“A”............................... $0.20 per hour “B”............................... $0.10 per hour

B. Journeyman tradesmen, with the exception of head planerman and

planermen, will not qualify for this premium.

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ARTICLE NINETEEN: WORKING FOREMEN Employees outside the bargaining unit shall not perform work that is normally performed by employees in the bargaining unit. However, nothing in this Agreement shall be construed as prohibiting exempt staff from doing work for purposes of instruction, provided by so doing a layoff of bargaining unit employees does not result, or in the case of an emergency when regular employees are not available, provided that every reasonable effort is made to find a replacement. See Letter of Intent re: Article Nineteen. ARTICLE TWENTY: CHARGEHAND A designated Chargehand acting as a representative of the Company, is a work coordinator and can exercise job/work direction. As is true of all bargaining unit members, Chargehands do not have the right to hire, discharge or discipline employees. The Company shall have the right to select employees for the position. The Company will give due consideration to length of working service, competency and ability. The Plant Committee will be advised by the Company of Chargehand appointments. The only premium designated production Chargehands shall receive is seventy-five cents (75 cents) per hour higher than the top non-trades rate in their area of responsibility. Maintenance Chargehands will receive seventy five cents ($0.75) per hour higher above their trades rate. Existing Chargehands will have their rates red circled. None of the foregoing is intended to restrict any of the usual activities of a Chargehand as designated by the Company.

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ARTICLE TWENTY ONE: DURATION CLAUSE This agreement shall be effective the first (1st) day of October 2009, and shall remain in effect until the thirtieth (30) day of September, 2013 and for further periods of one (1) year unless notice be given by either party of the desire to cancel, change or amend any of the provisions contained herein within a period which is within four (4) months of the renewal date. Failure of either party to give such notice, shall mean that this agreement has been renewed for a period of one (1) year. Dated at Smithers, British Columbia This ______________________ day of ______________________, 2011. __________________________ ___________________________ WITNESS “THE UNION” James Jackson President __________________________ ___________________________ WITNESS “THE COMPANY” Dean MacDonald General Manager

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October 1, 1994

Revised: October 1, 1997

Letter of Understanding Re: Article Nine

HOLIDAY SCHEDULING

1. Holiday requests will be considered in as fair and consistent a manner as possible, but must be done in such a way as to maintain optimum production and costs. It is understood that the Company’s policy of allowing three (3) people off on a production shift will be maintained wherever possible. Exceptions to this policy will be by mutual agreement between the Company and the Union.

2. Employees wishing to take time off during the months of July and August, who apply in the appropriate request form prior to March 15, will have their vacation approved in order of union seniority. Blocks of at least one (1) week (the normal work-week or equivalent alternate schedule) will be given priority over requests for one (1) day.

3. Holiday applications for July and August applied for after the March 15 cut-off date will be approved on a “first come, first served” basis.

4. In all months other than July and August, union seniority shall be in effect up to a period of two months in advance of scheduled holiday. After that time, holidays will be on a first come, first served basis.

5. Your supervisor will notify everyone as to the disposition of their July and August holiday requests between March 16 and April 15.

6. Once approved, holidays must be taken unless there are justifiable extenuating circumstances. Review to be conducted by foreman and job steward.

7. Should an employee transfer to another department or shift, his vacation schedule will be reviewed by his foreman for approval.

8. Holiday calendars will be available in all supervisors’ offices for all employees to view.

9. This Letter of Understanding will be reviewed on an annual basis.

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October 1, 1994

Revised: October 1, 1997

Letter of Understanding Re: Article Eleven

APPRENTICE’S LIVING EXPENSE AND TRAINING ALLOWANCE

We have decided to change the way we pay for the living expenses of apprentices while in Prince George, Terrace, or Vancouver. Our previous method gave us no control over the amount spent by the apprentices and some of the bills became rather excessive.

The new method allows for a flat weekly allowance to be given to the apprentice. If he can live more cheaply than this, the money is his. If he cannot, all receipts of expenses must be brought in and the Company will review the allowance.

To facilitate payment it will be necessary for the apprentice’s supervisor to notify the accountant when the training will commence and when it will end. The amounts payable are as follows:

Prince George (C.N.C.)

Food $27/day x 5 days = $135

Accommodation $48/day x 5 days = 240

Travel (Smithers – Prince George return) 50

Total Weekly Allowance $425

Terrace (N.W.C.C.)

Food $27/day x 5 days = $135

Accommodation $48/day x 5 days = 240

Travel (Smithers – Terrace return) 30

Total Weekly Allowance $405

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Vancouver (B.C.I.T.)

Food $27/day x 7 days = $189

Accommodation $53.50/day x 7 days = 375

Travel (Local) 25

Total Weekly Allowance $589

Travel (Vancouver – Smithers) – Pay 1 return airfare

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October 4, 1994

Letter of Understanding Re: Article Eleven

BIDDING FOR MILLWRIGHT TRADE AND SAWFILING TRADE

MILLWRIGHT TRADE For the millwright trade the line of progression will go from oiler to millwright. The oiler’s job will be bid and he will become the next apprentice. The successful bidder for the oiler must write a trade’s qualification test acceptable to the Company, and pass with a mark of 70% or better. The successful bidder for oiler will have a two-month probation period. When entering the millwright trade as an apprentice there will be a three-month probationary period.

SAWFILING TRADE

For the sawfiling trade, employees will move from sawfitter, to circular sawfiler to benchperson. Employee movement between the steps will be based on operational requirements. The successful bidder for the sawfitter must write a trades qualification test and pass with a mark of 70% or better. When entering the sawfiling trade as an apprentice there will be a five (5) month probationary period.

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Letter of Understanding

WEEKEND SHIFT AGREEMENT – PRODUCTION

A. Shift Definition, Hours, Wages:

1. The hours of work will be: a) 12:00 a.m. Sat to 10:30 a.m. Sat b) 6:00 p.m. Sat to 4:30 a.m. Sun c) 1:30 p.m. Sun to 12:00 a.m. Sun

The hours of work above are subject to change. Any changes shall be by agreement between the Company and the Union.

2. There will be a one-half (1/2) hour unpaid lunch break and two (2) ten

(10) minute coffee breaks per ten-hour shift. Horns will be available to summons foremen if relief is required.

3. Hours of work will be paid at straight time.

4. A shift premium as per the Collective Agreement shall apply to this

weekend shift.

5. Employees working in excess of 10 hours in a day will be paid at rate and one half for the first hour; work in excess of 11 hours shall receive double their regular wage rate.

6. A callboard shall be established and employees may indicate their

interest in obtaining hours in addition to the weekend shift. Additional work opportunities will be filled according to seniority. Any additional hours picked up will be paid at straight time.

B. Posting & Bidding:

1. The weekend production shift will be posted as a temporary shift for a period of 90 days. If the shift is still operational after 90 days the Company agrees to post the jobs as permanent. If posted as a permanent shift, the normal posting procedure in Article Seven, Section Two will apply.

2. Bidding for the weekend shift is entirely voluntary. No employee will

be forced to work the weekend shift.

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C. Layoff: In the event of a layoff at the mill, it is understood that the weekend shift shall be the 1st shift laid off.

D. Statutory Holidays:

1. Statutory holidays will be rescheduled to the employee’s normal day off and the employee paid ten (10) hours straight time pay at the employee’s regular job rate.

2. The above (1) does not apply to Christmas Day, Boxing Day or New

Year’s Day. The Company agrees that these days shall be observed on the actual days that they fall. Where these statutory days fall on the employee’s normal work shift, the employees working this shift shall be given the day off with pay as if they had worked it.

3. The personal floating holiday when granted on a working day shall be

paid out at ten (10) hours straight time pay. E. General Provisions:

1. Health and Welfare and Pension: The provisions of the Collective Agreement shall prevail and these benefits will not be pro-rated.

2. Bereavement Leave and Jury Duty Leave:

The provisions of the Collective Agreement shall prevail and will not be pro-rated.

3. Vacation:

The provisions of the Collective Agreement shall prevail and will not be pro-rated.

4. Probationary Employees:

For employees working this weekend shift, the requirement in the Collective Agreement of thirty (30) days worked in a ninety (90) floating calendar day period shall be converted to a probationary period of two hundred and forty (240) hours worked. If an employee is able to pick up shifts in addition to the weekend shift, any additional hours shall apply towards completion of the probationary period.

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5. Bidding on other work opportunities: Employees working this weekend shift will be able to exercise their seniority to obtain full-time (40 hour) work opportunities when they arise.

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October 1, 1997

Letter of Intent Re: Article Nineteen

WORKING FOREMEN

The parties recognize that there may be occasions where, due to illness or vacation scheduling, the headfiler and/or the electrical foreman may perform bargaining unit work. It is also understood that nothing in Article Nineteen of the Agreement will prevent the parties’ past practice concerning the clean-up of the Plant during coffee and lunch breaks.

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Supplement One

B.C. NORTHERN INTERIOR SAWMILL & POLEYARD

JOB EVALUATION PROGRAM

A. Principles & Procedures Parties agree to implement and administer a job evaluation program for Pacific Inland Resources sawmill complex in accordance with the principles and procedures outlined in the B.C. Northern Interior Sawmill & Poleyard Job Evaluation Manual as administered by an independent third party.

B. Job Review Committee A Job Review Committee consisting of a maximum of three (3) representatives from the NIWA and a maximum of three (3) representatives of Management will be struck.

C. Guidelines for the Job Review Committee Responsible for addressing all requests for evaluation or re-evaluation and ensuring these requests are accurately documented before being sent to the Evaluator.

D. Decisions of the Job Review committee regarding the appropriateness of the

request for evaluation or re-evaluation and respecting the adequacy and accuracy of the documents shall be by unanimous agreement.

E. When the Evaluator has made a determination respecting the evaluation or

re-evaluation of a job, he shall inform the company and the NIWA in writing.

F. Purpose of the Job Evaluation Descriptions The Job Evaluation Description are written with the intent of setting out the general duties and requirements of the job, however, this does not mean that the Company cannot create a new job or assign duties to employees other than those specifically mentioned in the job descriptions. If the assignment of such duties changes the job content sufficiently to justify a review of the evaluation, the Job Evaluation Committee shall make such a review in accordance with the process for re-evaluation.

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G. Re-Evaluation

1. When a job has moved to a higher group as a result of re-evaluation the resulting rate shall be retroactive from the date that Management or the employee has applied to the Job Review Committee for re-evaluation.

2. When a job is moved to a lower group as a result of re-evaluation, the

incumbent(s) shall maintain their job rate as a red-circle rate until such times as they become the successful bid winners on another job, or job change during a reduction in forces, terminated or retired.

H. New Jobs Created When the Company has created a new job, a temporary rate shall be set by Management.

1. When the evaluated rate for the new job is higher than the temporary

rate, the resulting rate shall be retroactive from the date the job was installed.

2. When the evaluated rate for the new job is lower than the temporary rate

the incumbent(s) shall continue the temporary rate (the incumbent(s) become red-circled and the principles of G (2) apply.)

I. Training Program

1. A program of training members of the Job Review committee will be scheduled within three months of the signing of the 2000-2003 Memorandum of Agreement.

2. Hourly paid employees are to be paid for time-lost while receiving

training as a Job Review Committee member or while acting as a member of the committee regarding evaluation of newly created jobs or requests for re-evaluation. This provision is not intended to create opportunity for overtime pay and specifically refers to time-lost so as to eliminate the necessity for paying a committee member for time spent outside of their regular working hours.

J. Implementation Process

During the term of the 2000-2003 Master Agreement, the B.C. Northern Sawmill and Poleyard Job Evaluation Program will be implemented.

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1. For those jobs evaluated at a lower rate than is presently paid, the incumbents will be red-circled as provided for in G (2).

2. For those jobs evaluated at a higher rate of pay than is presently paid,

the higher rate will be effective October 1, 2001. K. The Company will pay the initial cost of the Evaluation to provide a complete

and detailed evaluation of all production jobs at PIR. The Parties will review the costs related to the Evaluation of newly created jobs and re-evaluations, relating to cost sharing of these expenses.

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Supplement Two

CLARIFICATION OF ARTICLE SEVENTEEN, SECTION TWO

The following example forms the basis of clarification for the payment. Example: 1. An employee applies for Weekly Indemnity for sickness on

September 15, 2000, and satisfies the five (5) day waiting period. The payroll administrator would review the employee’s record for the previous 12 months and if the employee did not have a Weekly Indemnity claim for sickness in that period of time, the employee would receive three (3) days’ pay (one (1) day for each four (4) month period in the preceding twelve (12) months).

2. An employee applies for Weekly Indemnity for sickness on

September 15, 2000, and satisfies the five (5) day waiting period. In reviewing the preceding twelve (12) month period it is determined that the employee had a Weekly Indemnity claim for sickness the preceding November. The employee’s entitlement to pay now only involves two (2) - four (4) month periods, which equates to two (2) days’ pay.

3. An employee applies for Weekly Indemnity for sickness and

satisfies the five (5) day waiting period. In reviewing the preceding twelve (12) month period it is determined that the employee had a Weekly Indemnity claim for sickness the preceding April. The employee’s entitlement to pay now only involves one (1) four (4) month period, which equates to one (1) days’ pay.

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Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Ex. 1 1 1 1 3 days

Ex. 2 1 1 2 days

Ex, 3 1 1 day

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50

51

52

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