COLLECTIVE AGREEMENT

Between

SGS CANADA INC.

And

Unifor, Local 900

JANUARY 6, 2016 TO January 5, 2020

TABLE OF CONTENTS

ARTICLE 1- PURPOSE ................................................................................................ 1 ARTICLE 2- RECOGNITION ....................................................................................... 1 ARTICLE 3- UNION DUES ......................................................................................... 2 ARTICLE 4- UNION SECURITY .................................................................................. 2 ARTICLE 5- MANAGEMENT RIGHTS ....................................................................... 3 ARTICLE 6- NO STRIKE/NO LOCKOUT .................................................................... 3 ARTICLE 7- GRIEVANCE AND ARBITRATION PROCEDURE ................................... 4 ARTICLE 8- LEAVE OF ABSENCE .............................................................................. 5 ARTICLE 9- SENIORITY............................................................................................. 6 ARTICLE 10- RATES OF PAY AND PREMIUMS ....................................................... 8 ARTICLE 11- HOU RS OF WORK AND OVERTIME .................................................. 8 ARTICLE 12- CHANGE OF SCHEDULE..................................................................... 10 ARTICLE 13- OVERTIME MEALS............................................................................ 11 ARTICLE 14-VACATION.......................................................................................... 11 ARTICLE 15- STATUTORY HOLIDAYS..................................................................... 12 ARTICLE 16- BENEFIT PROGRAM.......................................................................... 12 ARTICLE 17- DURATION OF AGREEMENT............................................................ 12 ARTICLE 18- JURY DUTY......................................................................................... 13 ARTICLE 19- BEREAVEMENT LEAVE WITH PAY................................................... 13 ARTICLE 20- BULLETIN BOARD............................................................................. 13 ARTICLE 21- SAFETY AND HEALTH....................................................................... 13 SCHEDULE "A"- WAGES, TRAINING AND PROMOTION.................................... 15 SCHEDULE "B"- SHIFT SCHEDULES...................................................................... 16 SCHEDULED "C"- JOB PROFILES.......................................................................... 17 LETIER OF UNDERSTANDING #1- MUTUALS.................................................... 18 LETIER OF UNDERSTANDING #2- REPOSTING OF POSITIONS........................ 18 LETIER OF UNDERSTANDING#3- DISCIPLINARY INFRACTIONS...................... 18 LETIER OF UNDERSTANDING #4- EXCESS HOURS OF WORK......................... 18 LETIER OF UNDERSTANDING #5- PERM. VARIBLE PART-TIME EMPLOYEES. 19 LETIER OF UNDERSTANDING #6- DRUG AND ALCOHOL TESTING................. 20

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COLLECTIVE BARGAINING AGREEMENT BETWEEN:

SGS CANADA INC. AND

UNIFOR UNION OF CANADA, LOCAL 900

ARTICLE 1.0- PURPOSE

1.1 The Company and the Union have entered into this· Agreement at Norfolk County, Ontario for the purpose of recording terms and conditions of employment resulting from collective bargaining which are to be observed by the parties hereto. It is their desire to maintain a harmonious relationship between the Company and its Employees, to settle all differences in an amicable manner as herein provided and to work together to promote the safety and health of the Employees.

1.2 The Company and the Union will establish quarterly communications in an effort to maintain positive working relations between the parties and to resolve outstanding issues or address concerns that may hinder maintenance of harmonious relations.

1.3 The Parties agree that both parties will comply with the Ontario Human Rights Code.

ARTICLE 2.0- RECOGNmON

2.1 The Company recognizes the Union as the sole collective bargaining agent for all Employees of SGS Canada Inc., employed in Norfolk County, save and except assistant site leaders, persons above the rank of assistant site leader, office, clerical and sales Employees.

2.2 The Company and the Union jointly agree that there will be no discrimination, intimidation or coercion by or on behalf of the Company or the Union, because of membership or non­membership in the Union or because of activity or lack of activity in any labour organization.

2.3 Employees outside of the scope of this Agreement will not do work covered by the classifications in this Agreement, except in cases of emergency or instruction.

2.4 The Company agrees not to subcontract work normally performed by Employees within the bargaining unit and which will result in the layoff of Employees qualified to do that work.

2.5 The Company agrees to provide a reasonable opportunity for the Union to conduct a

Union orientation session with all new bargaining unit employees. These sessions will be part of the orientation process and will be scheduled to minimize disruption of operations and will not create additional costs to the Company.

2.6 Employees shall, upon request, be allowed Union representation during disciplinary meetings provided a Steward is readily available. If a Steward is not readily available, an Employee may request that a fellow bargaining unit Employee, who is on duty, attend the meeting as a witness. Except as specifically provided for in this Agreement or in applicable legislation, no Employee will be compensated for time to conduct Union business which falls outside of his regular scheduled hours or on an Employee's regular day off.

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ARTIO.E 3.0- UNION DUES

3.1 The Company agrees to deduct Union dues as authorized by the Union in writing from the wages that are due and payable to each employee as covered in Article 2.1. The amount will be determined from time to time by the Union and will be deducted by the Company each pay period. The total amount of such dues deductions shall be remitted by the Company, by cheque, not later than twenty (20) calendar days after the last deduction of the month was made, to the Financial Secretary of the Local.

3.2 The Company is authorized and will, on written request from the Union, through its Secretary­Treasurer, deduct the amount of any uniform assessments levied on all Union members and promptly remit such deductions to the Secretary-Treasurer of the Union. The Union shall indemnify and save the Company harmless against any and all claims, demand, suits or other forms of liability that shall arise out of or by reason of action taken by the Company for the purpose of complying with any of the provisions of this Article.

3.3 The Company shall provide to the Union, an up-dated mailing list including telephone numbers for each employee covered in Article 2.1, on a quarterly basis.

ARTIO.E 4.0- UNION SEaJRITY

4.1 Every bargaining unit employee who is now or hereafter becomes a member of the Union shall maintain membership in the Union as a condition of employment. Every new bargaining unit employee whose employment commences hereafter shall maintain membership in the Union as a condition of employment.

4.2 The Company will supply each Employee with a copy of the Collective Bargaining Agreement.

4.3 Union Committees- Subject to Article 4.3 (b) and the other provisions of the Collective Agreement, the Company agrees to keep the employee's pay whole while attending mutually agreed to meetings with the Company, during the employee's regular working hours. No employee will be compensated for attending meetings which extend beyond their regular work day or on an employee's regular day off except as otherwise provided for in this agreement.

a) The Company agrees to recognize a Union Committee of not more than three (3) Employees composed of the Stewards and Unit Chairperson or designate. Union/Management meetings will be held quarterly (four times per year) or as otherwise mutually agreed, between the Union Committee and the Company, at mutually agreed times, place, attendees and agenda.

b) The Company recognizes a Negotiating Committee of up to three (3) employees and may have the assistance of a representative of the National Union and or Local 900 President. Meetings will be scheduled during regular business hours at mutually agreed times. The Company will compensate employee members of the Negotiating Committee for lost regularly scheduled hours spent in bargaining meetings with the Company for the renewal of the Collective Bargaining Agreement to a maximum of ten (10) days.

4.4 The Union agrees to furnish the Employer with a list of names of Employees who have been elected or appointed Union Chair and Stewards and are authorized to represent the Union, and the Union will keep this list up to date.

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4.5 The Unit Chairperson and Stewards will be required to perform their regular duties and will not leave or otherwise interrupt their regular duties without first informing the Site Leader. Permission to attend to matters under the grievance procedure will not be unreasonably denied but may be delayed for legitimate business reasons. After receiving approval from their Site

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Leader, a Steward or Unit Chair may leave their work to attend to matters under the grievance procedure. Their pay will be at the normal hourly rate of pay to a maximum of their regular daily hours of work.

ART10£ 5.0- MANAGEMENT RIGHTS

5.1 Except as, and to the extent specifically modified by this Agreement, all rights and prerogatives of Management are retained by the Company and remain exclusively and without limitation within the rights of the Company and its Management and may be exercised by Management as it, in its discretion, sees fit.

Without limiting the generality of the foregoing, the Company's rights shall include the right to:

a. maintain order, discipline and efficiency; to make, alter and enforce, from time to time, rules and regulations, policies and practices, to be observed by its Employees; to discipline and discharge Employees in accordance with this Agreement.

b. select, hire and control the working force and Employees; to transfer, assign, promote, demote, schedule and classify Employees subject to the terms of the collective bargaining agreement, to plan, direct and control its operations; to select and retain Employees for positions excluded from the bargaining unit; to operate and manage the enterprise in all respects in order to satisfy its commitments and objectives.

c. determine the location and extent of its operations and their commencement, expansion, curtailment or discontinuance; the direction of the working forces; the work to be done; the products to be manufactured, merchandised and sold; the standards of performance; whether to perform or contract for goods and services; the schedules of work; the methods, processes and means of performing work; job content and requirements; the qualifications of Employees; the use of improved or changed methods and equipment; the number of Employees needed by the Company at any time and how many shall work in any job; the number of hours to be worked; starting and quitting time; methods to be used to ensure security of the Company's property. Generally, the right to manage the enterprise and its business without interference are solely and exclusively the right of the Company.

d. Failure by the Company to exercise any of its Management Rights or other rights shall not be considered to be an abandonment of those rights.

5.2 Any change to this Collective Agreement, whether by addition, waiver, deletion, amendment or modification, must be reduced to writing and executed by both the Company and the Union.

ART1Q£ 6.0- NO STRIKE/NO LCXKOUT

6.1 In accordance with the Ontario Labour Relations Act neither the Union nor any employee shall participate in or counsel a strike and the Employer shall not cause or counsel a lockout.

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ARTIClf 7.0- GRIEVANCE AND ARBrTRATlON PROCEDURE

7.1 If any Employee, or a group of Employees, has a grievance concerning the interpretation and/or application of the provisions of this Agreement and/or other conditions of employment, then an earnest effort shall be made by both parties hereto to settle the grievance without delay. The matter may be taken up in the following manner:

Step One - The aggrieved employee shall through or with the employee's union steward discuss the grievance with the employee's supervisor, no later than seven (7) calendar days after the employee should have reasonably learned of the circumstances giving rise of the grievance. The supervisor shall give an oral decision within five (5) calendar days of the date the matter was

raised.

If the supervisor's decision is unsatisfactory or the supervisor does not respond within the five (5) calendar days, the employee or the union may proceed to Step 2 by providing written notice of the grievance to the employer within seven (7) calendar days of the supervisor's decision or expiry of the five (5) calendar days.

Step Two - The Grievance shall be lodged in writing and signed by the Employee or the Steward and specify the articles of the collective agreement that are alleged to have been violated, as well as the settlement requested on behalf of those involved. The Employee, together with the Steward, shall take the matter up with the Employee's Supervisor or his designate, who shall in turn render a written decision within fourteen (14) calendar days of the date of written grievance.

Step Three - If no settlement is reached at Step Two, the union shall notify the employer in writing within seven (7) calendar days of its intention to proceed to Step Three. A meeting will be held between the Chief Steward and Union National Representative or their designates and the Operations Manager or his/her designate. The Company shall render a decision in writing within fourteen (14) calendar days of the meeting.

Both parties agree that the time limits set out above are mandatory and can only be extended by the written agreement of the parties.

Should either party not respond in accordance with the above time limits, the other party may proceed to the next step of the grievance procedure.

All grievances shall be dealt with on the Company's time during working hours, and no Employee or member of the Grievance Committee shall suffer loss of pay by reason of the time spent in discussing grievances with the representatives of the Company.

Disciplinary infractions will be removed from an Employee's file after twenty-four (24) months from the date of the infraction as long as there are no further infractions.

7.2 Policy Grievance- Any difference arising directly between the Union and the Company as to the interpretation or violation of the provisions of this Agreement may be submitted in writing by either party to the other at Step Three, instead of following the regular grievance procedure.

7.3 Arbitration- If the Employer's response at Step 3 is not accepted, within the next fourteen (14) calendar days, the Union shall notify the Company in writing of its intent to submit the matter to

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arbitration. If the Union fails to submit the grievance to arbitration, the grievance shall be considered settled without prejudice at Step Three.

7.4 Where a difference arises between the parties relating to the interpretation, application or administration of this Agreement, including any question as to whether a matter is arbitral, or where an allegation is made that this Agreement has been violated, either of the parties after properly exhausting the steps of the Grievance Procedure set forth in this Agreement, may notify the other party in writing of its desire to submit the difference or allegation to arbitration and the notice shall contain the first party's suggestions for an Arbitrator.

The recipient of the notice shall, within seven (7) calendar days, inform the other party of the name of its suggestions. lfthe recipient of the notice fails to suggest an Arbitrator or if the parties fail to agree upon an Arbitrator within the time limited, the appointment shall be made by the Minister of Labour, for the Province of Ontario upon the request of either party. The Arbitrator will hear and determine the difference or the allegation and shall issue a decision and the decision is final and binding upon the parties and upon the Company and any Employee affected by it.

7.5 The compensation and expenses of the Arbitrator shall in all cases be borne equally by the Company and the Union.

The Arbitrator shall not have the right to alter or change any provision in this Agreement or to substitute any new provisions in lieu thereof or to give any decision inconsistent with the terms and provisions of the Agreement. The Arbitrator, however, shall have the power to vary or set aside any penalty or discipline imposed relative to the grievance before the Arbitrator.

ART10.E 8.0- LEAVE OF ABSENCE

8.1 The Company agrees that leave of absence, without pay but with maintenance of seniority rights, shall be granted to any designated Employee for the purpose of conducting Union business at large, provided, not more than two (2) Employees are on leave of absence at the same time. The request shall be in writing by the Unit Chairperson:

a. for periods not in excess of two (2) calendar weeks at any one time; fourteen (14) calendar days' notice being required.

b. For an undefined period not exceeding one (1) calendar year; thirty (30) calendar days notice being required.

c. Union Leave: The Company will maintain an Employee's pay while on Union Leave and the Company will invoice the Local Union for the actual cost of the base wages. Health Benefits will be maintained by the Company for 30 days. The Company will invoice the Local Union for the cost of the health benefits after 30 days. The Union will remit payment within 30 days of the invoice date.

8.2 Employees may be granted leave of absence without pay but without loss of seniority or other rights for good and sufficient reason when, at the discretion of the Company, conditions permit it. Request for leave of absence shall be in writing, by the Employee concerned; ten (10) working days' notice being required.

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8.3 Employees are entitled to any leaves for which they qualify under the Ontario Employment Standards Act.

8.4 Leave with Pay

Regular, full-time employees who have attained seniority status will be granted special leaves of absences with pay for one day for the following reasons:

Birth of child, adoption, moving, Canadian Citizen Court and Marriage.

To receive the one day of pay, the Employee must provide verification of the occurrence of such reason upon request by his or her Supervisor.

Employees will be granted special leaves of absences with pay for up to three (3) days, at the discretion of Management for the following reasons:

Damage caused to the Employees residence by Major Fire or Major flood of Employees residence. Pay under this Article 8.4, is not included in the calculation of overtime.

ARTIQf 9.0- SENIORITY

9.1 Employees shall not have seniority status until they have worked ninety (90) complete shifts. After an Employee has worked ninety (90) complete shifts, seniority shall date from the beginning of the probationary period. In the event that two or more Employees start on the same day, their seniority will be determined by alphabetical order of the last name.

During the probationary period an employee may be discharged at the sole discretion of the Employer, provided such discharge is exercised having regard to the requirements of the job and/or the employee's suitability as an employee, as determined by the Employer. Furthermore, the Employer shall not terminate an employee for reasons which are contrary to the Ontario Human Rights Code.

In all cases of promotion, transfer, lay-off and recall, the Company shall use seniority, provided that the remaining employees have the skills and abilities to perform the work.

9.2 Layoff and Recall (i) Employees will be laid off by reverse order of seniority.

(ii) Those employees who are affected may use their seniority to displace a less senior employee, provided that the displacing employee has the skill and ability to perform the work available.

(iii) Employees will be recalled in order of seniority provided they have previously performed the work available.

(iv) Notice of recall will be given to employees by registered mail to their last known addresses. It will be the employee's responsibility to notify the Company of any change of address.

9.3 Promotion i) When a permanent vacancy occurs, existing Employees will have the first opportunity to bid

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on the opening.

ii) The job posting will identify the rate of pay, scheduling, essential functions, number of openings and requirements for the position. The position will be filled by the successful applicant within six weeks.

iii) Permanent vacancies will be filled on the basis of the skill, ability, experience and seniority of the applicant(s) . Where skill, ability and experience are equal, the Employer will select the most senior applicant.

iv) Employees will advise the Company in writing of their interest in a posted job vacancy prior to going on vacation.

9.4 (a) Vacancies of longer than two (2) months shall be considered permanent vacancies and shall be posted, except in cases of illness or injury where a return to work date is anticipated.

(b) Temporary vacancies (less than two (2) months) shall be filled by the Company seeking expression of interest from existing Employees. Temporary vacancies will be filled on the basis of seniority, provided the employee has the skill and ability to perform the work.

(c) If required to temporarily fill another job paying a higher rate of pay, the Employee will receive the higher rate of pay for all hours worked in that position. If required to temporarily fill another job paying a lower rate of pay the Employee will be paid his/her regular rate of pay.

9.5 For the purpose of promotion, transfer, lay-off and recall, there shall be one seniority list. The Company will post a seniority list on an annual basis.

9.6 Employees' seniority shall be lost and their employment terminated in the event of the following:

a. Dismissal for just cause;

b. Voluntary resignation;

c. Failure to report for work within three (3) calendar days following a lay-off, after notice to return to work has been received by registered mail to the last places of address registered with the Company, unless the Employees can give a good reason, in writing, satisfactory to the Company for such failure to report in the time prescribed. It is the responsibility of the Employees to keep the Company informed of their current addresses.

d. Layoff in excess of eighteen (18) months.

e. Failure to report for work immediately following a leave of absence

9.7 An employee that has been transferred by the Company to a position outside the Bargaining Unit may return to the Bargaining Unit within one-hundred eighty (180) calendar days. The employee's seniority at the time of leaving the Bargaining Unit will be restored upon the employees return to the Bargaining Unit. However, the employee will not accrue seniority while outside the Bargaining Unit.

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9.8 Termination of Employment In the event of a partial or full plant closure, the Company will provide Employees notice, or, pay in lieu of notice in accordance with the Ontario Employment Standards Act. Recall rights are forfeited upon the collection of severance.

ART1Q.E 10.0- RATES OF PAY AND PREMIUMS

10.1 The rates of pay, as appended to this Agreement in Schedule "A", shall form part of this Agreement and shall remain in effect for the duration of this Agreement.

10.2 Employees will be paid in accordance with Schedule "A"

10.3 Overtime rates of pay are at time and one-half (1-1/2X) of the applicable rates of pay in Schedule "A"

10.4 All employees will receive a premium of $1.00 per hour for all hours worked between the hours of 18:00 and 06:00. This premium will not be included for the calculation of any other premium compensation. This premium will not be increased annually and will remain at $1.00 per hour for the duration of the Collective Agreement.

10.5 Employees shall be paid on a bi-weekly period.

10.6 The Company shall provide to all Employees within a reasonable period of time, an itemized statement of their wages, indicating hours, rate, and specific deductions.

ARTIQf 1LO- HOURS OF WORK AND OVERTIME

11 . 1 Work Schedule The hours of work, schedules and work periods contemplated by this Agreement, are subject to change by the Company due to client requirements after consultation with the Union. Consultation with the Union means that the company shall give advance notice of schedule changes to the Union and consider any alternative Union proposals.

11.2 Current Work Schedules in effect as of January 5, 2016 are:

a. Fixed Day Employees work an eight (8) hour shift between the hours of 6 a.m. and 6 p.m.

b. Twelve (12) Hour Shift Employees will rotate between "D" and "N" shifts: "D" Shift 6:00 a.m. - 6:00 p.m. "N" Shift 6:00 p.m. - 6:00 a.m.

The arrangement of fixed work schedules in no way constitutes a guarantee of a minimum number of hours of work per week. However, the company will endeavour to provide 40 hours of work per week but there is no guarantee and the final decision on hours worked rests solely with the company.

11 .3 Overtime All overtime is voluntary and all hours worked outside an employees regularly scheduled hours will be paid at overtime rates oftime and one-half (1-1/2X).

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11.4 Call-In When an Employee is called in to work outside of their regular schedule, they shall be paid at the appropriate rate, but in any event, they will receive not less than four (4) hours pay at regular rate.

11.5 Overtime Administration The Company w"ill maintain an overtime distribution list to be updated bi-weekly. The distribution list should contain the Employee's name, overtime hours and job qualifications. Where the Employer chooses to schedule overtime the following procedure will be followed:

a. Overtime assignments will be made from the previous updated overtime distribution list.

b. Overtime assignments will be offered to the qualified Employee with the least overtime hours on the distribution list who are available.

c. Overtime hours offered that are declined will be charged to the distribution list.

d. In the event there is no qualified Employee available from the distribution list, the junior qualified person on shift will fill the vacancy and the company will backfill with an available qualified Employee from the overtime distribution list.

e. Employees on vacation should not be called in until all other avenues have been exhausted in accordance with this Article.

f. In the event of an error pertaining to Article 11.5, the Company shall be advised no later than seven (7) calendar days after the employee knew or could reasonably have known of the alleged error.

g. In the event an error is made in the administration of this overtime distribution article, make up overtime will be offered within thirty (30) calendar days of the employee advising the Company of the error, in lieu of compensation. The parties agree that the Company's obligation is to offer the make-up overtime within the above noted thirty (30) calendar days. The parties agree that the make-up overtime offered must be worked within ninety (90) calendar days after the error. The parties agree that the timely observance of the requirements of article 11.5 is important to the proper administration of this agreement.

h. If the Company agrees there has been an error and fails to offer the make-up overtime within the aforementioned 30 days, the Company shall pay the affected employee(s) compensation in an amount equal to the missed overtime assignment.

i. The remedy in paragraph (h) will also be available if an arbitrator determines that the employee has complied with paragraph (f) but the employer incorrectly denied the error and therefore did not provide make-up overtime in accordance with paragraph (g).

j. Unscheduled overtime including but not limited to sick coverage, unanticipated customer requests, bereavement, etc., will be covered on a first Employee contacted, first acceptance basis by calling Employees in order of the overtime distribution list. If the low Employee cannot be contacted, the next Employee on the distribution list will be called. The Supervisor call log shall be accepted as the official record of calls made.

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11.6 Lunch periods and Breaks One 30 minute lunch period and two fifteen (15) minute break periods (three fifteen (15) minute break periods for twelve (12) hour shifts) may be taken at a mutually convenient time which takes into consideration the operation and production of the facility and the need of the worker to receive nutrition and for health reasons. Lunch and break periods which require the worker to remain on site will be paid by the Company and are incorporated into the hours of

work.

11. 7 Banked Time Overtime hours worked may be banked for time off in lieu of overtime worked and calculated on the same basis as overtime hours. However, Employees may not bank more than forty (40) hours at any one time. Such time must be clearly recorded on a time sheet and submitted to the payroll department on the weekly time sheet.

11.8 Mileage Reimbursement Employees who are requested to use their own vehicle to perform job related duties, will be reimbursed at the SGS mileage reimbursement rate as it may exist from time to time.

ARTIQ£ 12.0-QIANGE OF SCHEDULE 12.1 A change of schedule for the purpose of this Agreement shall be interpreted as a change

whereby the starting or stopping time is altered by five (5) hours or more or where days off are changed but shall not include the regular rotation from one shift to another or overtime worked in accordance with Article 11.

12.2 A shift change premium will be paid when the Company initiates a change in an Employee's normal work schedule from his existing work schedule to another existing or new schedule and the following rules will apply.

a. Except as in c. below, the shift change premium will be applied on the first work shift performed on the Employee's new schedule.

b. An Employee who loses time in a work cycle due to a change-of-schedule, will be given the opportunity to make up the amount of money lost at overtime rates in the pay period that the time is lost.

c. An Employee who gains time due to a change-of-schedule, will be provided with overtime pay for the extra scheduled hours in the work cycle.

d. If an Employee has a change of schedule on a recognized Statutory Holiday as Defined in Article 15, Statutory Holiday pay will be paid for that day, and premium rates for the change of schedule shall be paid to such Employee for the next day worked on the new schedule.

e. If the change of schedule is for fourteen (14) calendar days or less and the Employee's days off are not changed, the premium rate will not be paid upon the Employee's return to their previous work schedule.

f. Shift change premium will not apply when the change in schedule results from the transfer of an Employee to fill a vacancy which they sought.

12.3 In no case shall an Employee be paid more than one premium rate for the same hours.

ART10E 13.0- OVERTIME MEALS

13.1 The Company will provide a meal for Employees held over more than two (2) hours or called in to work for more than two (2) hours without four (4) hours' notice. An Employee will qualify for subsequent meals as follows:

a. if the holdover or call-in is for six (6) hours, a second meal will be provided.

13.2 A period of twenty (20) minutes will be allowed for consumption of each meal without loss of pay.

ART1Qf 14.0-VACATION

Bargaining Unit Employees will be entitled to vacation time and pay in accordance with Employment Standards.

The SGS Canada vacation year follows the calendar year (January 1 to December 31). Vacation time is calculated based on the completed years of service as at January 2nd each year and updated on the pay deposit slip on the second pay of each year. Vacation pay will accrue using the percentages shown in the example below and based on the Employee's actual service date and will be increased to the next level when the actual years of service is attained. Carry-forward of unused vacation time is not allowed. All remaining vacation pay accrued for in a prior calendar year will be reconciled and paid out annually. Vacation time for Employees who have attained seniority status will accrue based on the chart shown below, using a standard eight hour day as an example.

Less than two years of service 2 weeks = 4% = 10 Days = 80 Hours Over two years but less than eight Over eight years but less than fifteen Over fifteen years of service

3 weeks= 6% = 15 Days = 120 Hours 4 weeks= 8% = 20Days=160 Hours 5 weeks = 10% = 25 Days = 200 Hours

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14.1 Vacation cannot be accumulated from year to year but must be taken within the year.

14.2 Vacation will be scheduled on each shift by seniority or by a schedule which has been approved by the Company, taking into consideration operating requirements with a preference being given to seniority.

14.3 An Employee will be entitled to the vacation as set out in Article 14.0 any time during the calendar year in which their anniversary date falls, provided that they have completed their 9·0 complete shift probationary period. Vacation, once scheduled and approved by their Supervisor, will not be changed except by mutual agreement. Vacation will be approved within two weeks of submission.

14.4 Vacation pay shall be calculated in accordance Article.14.0

14.5 Total earnings will be calculated on the gross vacationable wages in accordance with the Ontario Employment Standards Act.

14.6 If a death in the immediate family, as set out in Article 19.0, occurs while the Employee is on vacation, bereavement leave will be granted on the same basis as if the Employee was at work, in addition to vacation. The additional vacation will be scheduled at a mutually agreeable time.

ARTIClf 15.0- STATUTORY HOUDAYS

15.1 Days designated as Statutory Holidays are as follows: New Year's Day Family Day Good Friday Victoria Day Canada Day Civic Holiday (not statutory) Labour Day Thanksgiving Day Christmas Day Boxing Day One (1) Floating Holiday

For the purpose of time off and payment, the designated holidays will be observed on the traditional calendar date, or date decreed by statute. If the Employee is required to work on one of the above­mentioned paid Statutory holidays, they will be paid in accordance with the Employment Standards Act at the rate of time and one-half (1 Yi) for each hour worked.

If the Employee chooses not to receive payment for the statutory holiday worked, both the Employee and the Employer may agree for the Employee to take an alternate day with pay at a mutually acceptable time.

An Employee wilt receive a holiday pay allowance according to Employment Standards. In order to receive statutory holiday pay, the Employee must have worked the full regularly scheduled work day immediately preceding the holiday, and the full regularly scheduled work day immediately following such holiday, unless absent with a doctor's note where the employee is unable to work due to a verifiable and documented medical condition.

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ARTIClf 16.0- BENEFIT PROGRAM

16.1 Bargaining unit Employees wilt receive the Health Benefits on the same basis as non bargaining unit Employees as they may exist from time to time. The company will notify the Union of any changes as far in advance as possible.

16.2 Retirement Savings

After three (3) months of continuous service, Employees may participate in the Company Registered Retirement Saving Program, as it may exist from time to time.

ART1CLE 17.0- DURATION OF AGREEMENT

17.1 This Agreement shall become effective from Ratification and remain effective for the period of four (4) calendar years ending on January 5, 2020. If no notice of termination or amendment is given as provided herein, the Agreement shall be renewed automatically from year to year. Either party may give to the other party not less than thirty (30) calendar days or more than sixty (60) calendar days, notice of its intention to terminate or seek amendment to this Agreement; and when such notice of intention to seek amendment is given, the negotiations on the amendment shall commence within thirty (30) days.

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ARTIQ.E 18.0-JURY DUTY

18.1 A regular Employee summoned for Jury Duty or subpoenaed as a witness by the Crown

and absent from work as a result of such summons will receive make-up pay for those hours or days they are scheduled to work. The amount of such pay will be that which together with their jury or witness pay equals what they would have received, had they worked. To be eligible for

make-up pay, the Employee must give adequate notice of their absence to their Supervisor.

ART1CLE 19.0- BEREAVEMENT LEAVEWJTH PAY

19.1 The Company agrees to pay the wages of an Employee up to a maximum of five (5) scheduled shifts off for the purpose of attending to a funeral in case of death of someone in the

immediate family. Such days will only be between the day of the death to the day of the funeral inclusive. Immediate family to mean only the following: mother, father, wife, husband, son, daughter, brother, sister.

19.2 The Company agrees to pay the wages of an employee up to a maximum of three (3) scheduled shifts off for the purpose of attending to a funeral in case of death of mother-in-law, father-in-law, sister-in-law, brother-in-law, grandparents and grandchildren.

19.3 In the event that an Employee is unable to attend the funeral, they will be granted one (1) bereavement leave day on the day of the funeral provided it occurs on a regular working day.

19.4 Where re-marriage occurs or a legally recognized common law relationship exists, the definitions of immediate family will be construed to reflect the appropriate changes.

19.5 It is further agreed that an Employee be entitled to one (1) day of funeral leave with pay to attend the funeral in the event of bereavement of an aunt, uncle, or spouse's grandparents subject to the same conditions as immediate family. Upon mutual agreement between the Company and Employee, additional funeral leave without pay may be granted at the discretion of the Company.

19.6 For attending a funeral which is more than 300km away, the Employee may request an additional day of bereavement without pay or they may request to use vacation or banked overtime.

ART1CLE 20.0- BUu.ETIN BOARD

20.1 The Company will provide two (2) bulletin boards for the purpose of posting official Union notices. All notices posted on these bulletin boards will have prior approval and signature of an elected representative of the Local. As well, the Company will supply a filing cabinet.

ARTIQ.E 2LO- SAFETY AND HEALTH

21.1 The Company and the Union agree that it will recognize a Safety Committee made up of

two (2) Employee members of Unifor Local 900, SGS Unit and two (2) members appointed by the Company. The purpose of the Committee would be to reduce incidents by receiving and considering suggestions presented to the Committee concerning hazards to which Employees may be exposed.

21.2 One Union member of the Company-Union Safety Committee will participate in incident and accident investigations. Both the Union and its designate agree to co-operate in securing a full investigation. Should an accident occur which involves a member of this Bargaining Unit and the Union members of the Health and Safety Committee are unable to attend the Accident Investigation, a member of the Executive will be invited to attend.

21.3 The Company will reimburse Employees for CSA safety footwear for to a maximum of $300.00 per calendar year, and for prescription safety eyewear for a maximum of $300 every two years. All safety footwear and eyewear purchases are strictly for personal use only, while at work. Employees will be responsible for replacing safety footwear and eyewear if deemed to be unsafe by the Site Leader. Receipts must be also be submitted to Site Leader.

21.4 The Company also agrees to provide all Employees with Nomex coveralls.

21.5 Employees will also be provided with winter coats, bellaclavas and a winter bib. Replacement coats will be issued upon approval from the Site Leader.

21.6 The Company will provide all other protective equipment as required to perform the work safely and efficiently.

21.7 The Company will provide employees with laundered coveralls, winter coats, bellaclavas and a winter bid.

21.8 The Company will maintain a Medical Surveillance Program .

• i..J fif Vf Signed this .1 ~ day of _,cl-__,+1--- 2016.

For the Union, Unifor Local 900

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Schedule "A" Wages, Training and Promotion

The following rates of pay will be paid upon ratification of the collective agreement:

Classification New Hire After After 18 After 30 Rate Probationary Months Months

Period

Loader $20.40 $21.42 $23.46 $25.00 Lead Hand $25.50 $27.68 $30.09 $32.64 Training Coordinator $25.50 $27.68 $30.09 $32.64

Increases

The above rates of pay will be increased by 2% effective the first pay period following the first anniversary of ratification, by a further 2% effective the first pay period following the second anniversary of ratification and by a further 2% effective the first pay period following the third anniversary of ratification.

Training

The Loader classification contained the following skill sets at the time the Collective Agreement was ratified:

Crude Rack Benzine Rack LPG Rack Eddy Rack Acid Rack Dock

The Parties agree that the employer can add additional skills sets to the Loader classification as customer requirements change. However, if adding of additional loader skill set(s) substantially changes the nature of the Loader classification to render it a new classification the Parties will meet to discuss the wage rate of the new classification and if they are unable to agree, the matter will be referred to arbitration.

Training opportunities to be certified in one or more of the Loader Skill Sets will be posted and awarded by seniority to employees on the affected team.

If an insufficient number of employees have applied for training, mandatory training will be assigned on the affected team in reverse order of seniority.

Selected employees will be trained in accordance with learning plans developed by the Employer. Employees that have commenced training will be required to complete the training unless excused by the Employer.

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Lead Hand and Training Coordinators

A general description of the purpose, duties, and qualifications of the Lead Hand and Training Coordinator jobs is attached hereto as Schedule "C" and may be supplemented by the Employer from time to time, following discussion with the Union.

Lead Hands and Training Coordinators are required to meet and maintain the high standards and expectations established by Schedule "C", as amended by the employer following discussion with the

Union.

The existence of a Training Coordinator does not relieve Loaders and Lead Hands from mentoring and demonstrating procedures to less skilled Loaders as directed by the Employer or Training Coordinator.

Schedule "B" Shift Schedules

The schedule repeats on a four (4) week or twenty-eight (28) day cycle and is an integral schedule for four (4) rotating shift teams.

The following shift pattern was agreed to by the Company and the Union at the time the first Collective Agreement was ratified:

TEAM 1 D D N N D D N N N D D D N N

TEAM 2 D D D N N D D N N D D N N N

TEAM 3 D D N N N D D D N N D D N N

TEAM4 N N D D N N N D D D N N D D

Changes to Shift Schedules

It is understood and agreed that when the Company makes a change to an employee's hours of work or shift pattern, the following process will be utilized.

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1. A notice of change will be presented to the Union (written or verbal) which will contain: . The proposed change and employees affected . Timing of change . Business rational or case which would contain objective measures and costs, where applicable . Recommendations/solutions to deal with the change

2. The Site Leader will meet with the Union to seek mutual agreement. If mutual agreement is reached, the details of the agreement will be signed off by the Site Leader and the appropriate Union representative.

3. Where no mutual agreement is reached between the Site Leader and the Union representative, the matter will be submitted to the Union/Management Committee for review with the intent to reach mutual agreement. This meeting may occur before or after the change has been implemented.

4. If mutual agreement is reached, it shall be without precedent or prejudice to any future change in hours or schedules.

5. If no mutual agreement can be reached, the Union may file a grievance in accordance with the Collective Agreement at Step Two. Should the grievance be referred to arbitration the arbitrator will determine whether the change has been made, or will be made, for a legitimate business reason. If the change has been made for a legitimate business reason, the grievance will be denied.

JOB TITLE PURPOSE

SCHEDULE "C" JOB PROFILES

PRIMARY DUTIES QUALIFICATIONS LEAD HAND • To coordinate, • Direction of work • Minimum Tech Ill

direct and assist crew in a safe and • Ability to Mentor the work crew efficient manner • Report writing

• Assist in • Quality and ability development and quantity of work • Working training of new • Will work in close knowledge of employees cooperation with Occupational

Site Supervisor Health & Safety

• Does not handle Act discipline or • Strong contract communication interpretation and interpersonal issues which are skills to be referred to • Display regularity the Site of attendance, Supervisor punctuality and

• Other duties as positive behaviour assigned by the • Strong and Employer demonstrated

ability to lead by example

TRAINING • To oversee the • Responsible for • Minimum Tech Ill

COORDINATOR training at site overseeing the • Ability to train training process • Excellent writing

• Providing ability supplementary • Working hands on training knowledge of

• Scheduling Occupational training shifts Health & Safety

• Updating training Act procedures • Working

• Maintaining knowledge of training records Company Policies

• Other duties as and Procedures assigned by the • Strong Employer communication

and interpersonal skills

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Letter of Understanding # 1 Mutuals

Employees who require time off may make a mutual shift exchange with another employee who is qualified in the same area provided the swap occurs within the same pay period. No overtime will be incurred due to the mutual. The employees involved will be required to comply with the mutual. Such mutual exchanges will be reported to the Site Leader.

Letter of Understanding #2 Reposting of Positions

Upon Ratification of this agreement and for this first contract only the Lead Hand and Trainer Positions will be reposted within thirty (30) days of ratification and filled in accordance with the terms ofthis Agreement and attached Schedules. Should the incumbent apply and be selected the rate of pay the incumbent was receiving at the time of ratification will be maintained and they will progress in accordance with Schedule "A" and their time in the position.

Letter of Understanding #3 Disciplinary Infractions

All disciplinary verbal, written and suspension infractions, up to June 1, 2015, will be removed from an Employee's file upon ratification.

Letter of Understanding #4 Excess Hours of Work

The Union enters into this agreement on behalf of all Bargaining Unit employees in accordance with Sections 1(1) and 7 of the Employment Standards Act, 2000.

The Union and the Company agree that nothing in this Letter of Understanding changes the terms of the Collective Agreement and the requirements therein.

Daily Hours of Work

Notwithstanding Sections 17(1)(a) of the Employment Standards Act, 2000, the Union and the Company agree that the Company may permit an employee to work up to 13 hours per day.

This Letter of Understanding shall be considered an agreement under Section 17(2) of the Employment Standards Act, 2000.

Weekly Hours of Work

The Union and the Company agree that subject to the requirements of the Employment Standards Act, 2000 and the approval of the Director thereunder, the Company may permit an employee to work up to 72 hours of work per week.

The Company and Union agree that the Company will make one or more applications for approval for the employees to work up to 72 hours per week under Section 17.1 of the Employment Standards Act,

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2000 during the life of the Collective Agreement. The Union agrees to fully support and assist the Company in seeking approval of such applications.

This letter of Understanding shall be considered an agreement under Section 17(3) (a) of the Employment Standards Act, 2000.

This agreement shall remain in effect for the life of the current Collective Agreement, which is scheduled to expire January 5, 2010.

Letter of Understanding #5 PERMANENT VARIABLE PART-TIME EMPLOYEES

The Parties agree that the Employer may employ Permanent Variable Part-Time Employees in the Bargaining Unit. Permanent Variable Part-Time Employees will regularly be scheduled to work twenty­four (24) hours per week or more.

The Employer may employ one (1) Permanent Variable Part-Time Employee for every seven (7) Full-Time Employees.

The Company and Union agree Permanent Variable Part-Time Employees will not work full-time hours for more than seventeen (17) weeks out of any rolling twenty-six (26) week period. This period may be extended by mutual agreement between the Company and the Union.

All terms within the Collective Agreement will apply to Permanent Variable Part-Time Employees except where expressly modified by the terms of this Letter.

Seniority Permanent Variable Part-Time Employees will achieve seniority status once they have completed ninety (90) complete shifts. A separate seniority list will be maintained for Permanent Variable Part-Time Employees and seniority will be based on total hours worked. The seniority list will be updated quarterly and a copy provided to the Union. Permanent Variable Part-Time Employees may bid in writing on Full­Time job postings; however, job postings will be filled by Full-Time Employees first. If no other Full-Time Employees have bid on the job posting it will be awarded to Permanent Variable Part-Time Employees on the basis of seniority.

Benefits Permanent Variable Part-Time Employees will be eligible for benefits once they have completed ninety (90) complete shifts.

Hours of Work Permanent Variable Part-Time Employees shall work both on call and scheduled shifts.

Overtime The Parties agree that the Employer may schedule Permanent Variable Part-Time Employees up to forty (40) hours a week before scheduling overtime for Full-Time Employees. The opportunity to work hours in excess of twenty-four (24) hours will be distributed among the Permanent Variable Part-Time Employees as equitably as possible.

Training

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Permanent Variable Part-Time Employees will receive appropriate training as necessary to perform jobs assigned consistent with training for Full-Time Employees. Refresher and recertification training will be provided as needed.

Vacations Permanent Variable Part-Time Employees will be paid vacation pay calculated as 4 % of the employee's vacationable earnings. Vacation pay will be paid as part of the employee's regular pay. Vacation days will be scheduled at mutually agreeable times.

Statutory Holidays Permanent Variable Part-Time Employees will be paid the overtime rate of hours worked on a Statutory Holidays. Statutory Holiday pay will be paid in accordance with the Employment Standards Act.

Letter of Understanding #6 Drug and Alcohol Testing

During negotiations for their first Collective Agreement, the Parties discussed the issue of Workplace Drug and Alcohol Testing.

The Employer and the Union are aware of the substantial body of law regulating workplace drug and alcohol testing, including recent precedent from the Supreme Court of Canada.

The Employer agreed that it would comply with the law governing workplace drug and alcohol testing.

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