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COLLECTIVE BARGAINING AGREEMENT

BETWEEN:

NESTLE PURINA PETCARE, CALEDONIA

(hereinafter referred to as "the Employer")

OF THE FIRST PART

-and-

United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and

Service Works International Union on behalf of, Local16506-42

(hereinafter referred to as "USW"and United Steelworkers and/or "the Union")

OF THE SECOND PART

NOVEMBER 8, 2011 -NOVEMBER 7, 2015

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INDEX

Article Page No.

1 Purpose of Agreement 4

2 Scope & Recognition 4

3 Management Rights 4

4 Union Security 6

5 Plant Committee 8

6 Grievance Procedure 9

7 Union and Company Grievances 10

8 Discharge and Disciplinary Cases 10

9 Local Union Leave 11

10 Arbitration 11

11 Seniority 12

12 No Strikes or Lock Outs 14

13 Absences from Work 14

14 Health and Safety 15

Refusal of Unsafe Work 16

15 No Discrimination 17

16 Job Posting 18

17 Hours of Work and Overtime 19

18 Temporary Vacancies 20

19 Bulletin Board 21

20 Bargaining Unit Work 22

21 Blank

22 Wage Rates 22

23

24

25

26

27

28

29

30

Holidays

Vacation

Bereavement Leave

Jury Duty

Reporting Pay

Call In

Benefit Plans

Pension Plan

Duration of Agreement

Schedule A

Letter of Understanding- Indian Act - Benefits

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Letter of Understanding- Additive Technician Trainee

Letter of Understanding- Trainee Positions

Letter of Understanding- Temperature within Plant

Letter of Understanding - Casual Employees

Letter of Understanding- Humanity Fund

Letter of Understanding- Technological Change

Letter of Understanding- Absenteeism

Letter of Understanding- Swipe Cards

22

23

24

25

25

26

26

27

28

29

31

32

33

34

35

36

37

38

39

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ARTICLE I

PURPOSE OF AGREEMENT

1.01 The general purpose of this agreement is to establish and maintain lawful and

orderly collective bargaining relations between the Company and its employees, to

provide procedures for the prompt and equitable disposition of grievances and to

establish and maintain mutually satisfactory working conditions, hours of work

and wages for said employees.

ARTICLE 2

SCOPE & RECOGNITION

2.01 The Company recognizes the Union as the bargaining agent of all employees of

Nestle Purina PetCare, Caledonia in the Town of Caledonia, save and except

supervisors, person above the rank of supervisor, office, clerical and sales staff.

2.02 The term "employee" or "employees" wherever hereinafter used shall mean only

those persons coming within the bargaining unit as defined above unless the

context otherwise applies.

2.03 Where the masculine pronoun is used in the Agreement it shall mean and include

the feminine pronoun where the context so requires.

2.04 In the event that the Company moves any part of its operation to a location of 80

kms or less from Caledonia, Ontario, the members of the bargaining unit will be

given preferential hiring status for the purposes of hiring into permanent vacancies

at the new location. The USW shall retain the right to represent employees at the

new location except where there is an existing collective agreement in place at the

new location.

ARTICLE 3

MANAGEMENT RIGHTS

3.01 The Union recognizes and acknowledges that the management of the plant and its

facilities and direction of the working forces are fixed exclusively in the Employer

and without limiting the generality of the foregoing the Union acknowledges that

it is the exclusive function of the Employer to:

(a) maintain order, discipline and efficiency and in connection therewith to

make, alter and enforce from time to time reasonable rules and regulations,

policies and practices to be observed by its employees, discipline or

discharge employees for just cause provided that a claim by an employee

that has been discharged or disciplined without cause may be the subject

of a grievance and dealt with as hereinafter provided;

3.02

3.03

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(b) select, hire, transfer, assign to shifts, promote, demote, classifY, lay off,

recall, retire employees or select employees for positions excluded from

the bargaining unit;

(c) establish and administer tests for the purpose of assisting the Employer in

determining an employee's qualifications, and reqmre medical

examinations;

(d) determine the location of operations, and their expansion or their

curtailment, the direction of the working forces, schedules of operations,

the number of shifts; determine the methods and processes to be

employed, job content, quality and quantity standards, the establishment of

work or job classifications; change, combine or abolish job classifications;

determine the qualifications of an employee to perform any particular job;

the nature of tools, equipment and machinery used and to use new or

improved methods, machinery and equipment, change or discontinue

existing tools, equipment, machinery, methods of processes; decide on the

number of employees needed by the Employer at any time, the number of

hours to be worked, starting and quitting times, when overtime shall be

worked and require employees to work overtime, as per article 17 .04, the

determination of financial policies, including general accounting

procedures and customer relations;

(e) have the sole and exclusive jurisdiction over all operations, buildings,

machinery, equipment and employees.

The Employer agrees that it will not exercise its functions in the manner

inconsistent with the provisions of this Agreement and the express provisions of

this Agreement constitute the only limitations upon the Employer's rights.

Without limiting the generality of the foregoing provisions, it is expressly

understood and agreed that breach of any of the plant rules, or any of the

provisions of this agreement, may be cause for dismissal of an employee. The

employee shall have the right to lodge a grievance as herein provided in this

Agreement.

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ARTICLE4

UNION SECURITY

4.01 (a)

(b)

(c)

(d)

4.02

4.03

It shall be a condition of employment that all employees become and remain

members of the Union in good standing.

All new employees shall become and remain members of the Union in good

standing as a condition of employment.

While the parties have agreed that Union membership is a condition of

employment, if an employee has valid and authentic religious objections to

joining a Union, he will be exempted from this clause. Regardless of any

objection, the Rand Formula shall apply.

It is agreed that none of the substantive or procedural rights contained in this

Collective Agreement apply to probationary employees (ineluding, but not limited

to, just cause termination protection). The sole exception is the substantive right

not to be dealt with in a manner that is arbitrary, discriminatory, or in bad faith. It

is agreed that while probationary employees may access the grievance and

arbitration procedure, such access will be limited to the substantive rights

applicable to probationary employees, namely the determination of whether the

probationary employee has been subjected to arbitrary, discriminatory or bad faith

treatment by management.

The Company shall deduct Union dues including, where applicable, initiation fees

and assessments, on a weekly basis, from the total earnings of each employee

covered by this agreement. The amount of dues shall be calculated in accordance

with the Union's Constitution.

All dues, initiation fees and assessments shall be remitted to the Union forthwith

and in any event no later than 15 days following the last day of the month in

which the remittance was deducted. The remittance shall be sent to the

International Secretary Treasurer of the United Steelworkers, AFL-CIO-CLC,

P.O. Box 13083, Postal Station "A", Toronto, Ontario, M5W 1V7 in such form as

shall be directed by the International Union to the Company along with a

completed Dues Remittance Form R-115. A copy of the Dues Remittance Form

R· 115 will also be sent to the Union office designated by the Area Coordinator.

4.04

4.05

4.06

4.07

4.08

4.09

4.10

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The remittance and the R -115 form shall be accompanied by a statement

containing the following information:

a) A list of the names of all employees from whom dues were deducted and

the amount of dues deducted;

b) A list of the names of all employees from whom no deductions have been

made and reasons;

c) This information shall be sent to both Union addresses identified in Article

4.03 in such form as shall be directed by the Union to the Company.

The Union shall indemnifY and save the Company harmless against all claims or

other forms ofliability that may arise out of any actions taken by the Company in

compliance with this article.

The Company, when preparing T-4 slips for the employees, will enter the amount

of Union dues paid by the employee during the previous year.

a) The Employer agrees to acquaint new employees with the fact that a Union

Agreement is in effect, and with the conditions of employment set out in

the articles dealing with Union Security and Dues Check-off.

b) When a new employee is hired, he will be introduced to the shop steward,

or Executive Board Member in his department when he commences work.

The Local Unit Chairperson and stewards of the Local shall have top seniority in

the event of a lay off of three (3) or more days, provided they are qualified to

perform the remaining work.

The Company shall provide the Union with two (2) electronic versions of this

agreement and will endeavour to do so within two (2) weeks of the signing of the

agreement, in both Word and PDF formats. In the event Word or searchable PDF

formats are not applicable then another searchable electronic version will be

provided.

The Company shall provide copies of the Collective Bargaining Agreement to all

employees.

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ARTICLE 5

PLANT COMMITTEE

5.01 The Company agrees to recognize two (2) stewards to be known as Shift stewards,

to represent employees in presenting and processing grievances. There will be

one (I) steward on each shift.

5.02 In addition to the two (2) stewards, there will be one (1) employee elected or

appointed by the Union to be known as the Chief Steward.

5.03 The Local Unit Chairperson, by virtue of his office, can act as steward or Chief

Steward in their absence.

5.04 The Grievance Committee will consist of the Local Unit Chairperson and Chief

Steward. This committee will meet with the Company at Step No. 2 of the

Grievance Procedure.

5.05 Stewards are expected whenever possible to settle grievances on their shift

without loss of working time. However, when necessary, stewards will be

afforded reasonable time off from their work, to assist in the settlement of

grievances and in the administration of this Agreement as may be required;

provided that arrangements for such time off shall first be made with the Plant

Management to avoid interference with the Plant Operation. When conferences

between these representatives and the Plant Management are such that they can

only be held at the Plant and during the regular working hours of such

representatives, there shall be no loss of earnings to any employee for

participation in such conferences. Such time off shall not be unreasonably

withheld.

5.06 The Union will not engage in Union activities during working hours or hold

meetings at any time on the premises of the Company without the permission of

the Plant Manager or his designate.

5.07 The Unit Chairperson of the Local shall notifY the Company by letter of the

names, addresses and telephone numbers of the Local Officers and stewards, and

of any changes which may occur, together with the effective dates and names of

those they are replacing. The Company will keep the Local informed, in writing,

of all those persons with whom the Local will be dealing, together with their titles.

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ARTICLE 6

GRIEVANCE PROCEDURE

6.01

6.02

6.03

The parties to this Agreement are agreed that it is of the utmost importance to

adjust complaints and grievances as quickly as possible.

No grievance shall be considered where circumstances giving rise to it occurred or

originated more than ten ( 1 0) working days before the filing of the grievance. Pay

grievances will be twenty (20) working days.

The Union will submit grievance forms it proposes be used in the grievance

procedure.

The grievance will be dealt with in the following manner and sequence:

Step No. 1: The written grievance will be presented to Human Resources by the

Chief Steward or Shift Steward for settlement. Failing a satisfactory settlement

the grievance will proceed to Step No. 2.

Step No. 2: Within five (5) full working days following the written decision

under Step No. 1. The grievance shall be submitted for a meeting between the

Grievance Committee and the Plant Manager or his designate at which time a

representative of the International Union will be in attendance. This meeting must

be held within ten (1 0) full working days from the date the Company received

notice requesting such meeting. The Plant Manager or his designate will give his

written reply within five (5) full working days following the date on which the

Union received the written reply, the matter may be taken to arbitration, as

provided in Article 10, Arbitration.

6.04 During the probationary period, an employee shall be considered as being

employed on a trial basis and may be disciplined or dismissed by the Employer in

its sole discretion. Probationary employees may grieve that their discipline or

dismissal was not for just cause. For the purposes of this Article and Agreement,

the standard for disciplining or discharging a probationary employee is as follows:

(a) Just cause for discipline or dismissal of a probationary employee exists

where the Employer's decision was not made arbitrarily or in bad faith.

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ARTICLE 7

UNION AND COMPANY GRIEVANCES

7.01 Any differences arising directly between the Company and the Union may be

submitted in writing by either party beginning at Step No. 2 and the time limits

provided shall apply to both parties.

7.02 All written decisions arrived at between the representatives of the Company and

the representatives of the Union shall be final and binding upon the Company, and

the Union, and the employee or employees concerned.

ARTICLE 8

DISCHARGE AND DISCIPLINARY CASES

8.01 A claim by an employee, that he has been unjustly discharged or suspended from

his employment shall be treated as a grievance if a written statement of such

grievance is lodged with the Plant Manager or his designate within ten (10)

working days after the employee ceases to work for the Company. All

preliminary steps of the Grievance Procedure prior to Step No. 2 will be omitted

in such case.

8.02 A discharged or suspended employee, if at work, may confer with his steward or

Local Unit Chairperson for a reasonable period of time before leaving the

premises of the Company. Failure to comply will not render discipline null and

void. Such special grievances may be settled under the Grievance Procedure

including arbitration by:

(a) confirming the Management's action m dismissing or suspending the

employee;

(b) reinstating the employee with or without compensation for time lost less

any amount of money or compensation he may have earned or received

while on discharge or suspension;

(c) any other arrangement deemed just.

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ARTICLE9

LOCAL UNION LEAVE

9.01 Employees who have been elected or appointed by the Union to attend a Union

Convention or other Union business shall be granted their leave. The employee

shall give the Company at least two (2) weeks notice in writing of the request and

permission by the Company shall not be unreasonably withheld. Not more than

one (1) employees may be absent on Union leave at any one time, but the

Company is prepared to accommodate two (2) approved leaves of absence per

shift subject to the needs of the business being met.

ARTICLE 10

ARBITRATION

10.01 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 arbitrable, or where an allegation is made that this Agreement

has been violated, either party may, after exhausting any Grievance Procedure

established by this Agreement, notifY the other in writing of its desire to submit

the difference or allegation to arbitration. The notice shall be delivered to the

other party within fifteen (15) working days of the reply under Step No. 2.

10.02 The Arbitrator shall be selected by the parties from the following list in rotation:

M. Picher W. Kaplan R.E. McLaren Paula Knopf

In the event that the arbitrator selected by the parties is unable to act, the particular

case will be referred to the next-named Arbitrator on the list. The Arbitrator shall

hear and determine the difference or allegation and shall issue a decision and the

decision shall be final and binding upon the parties and upon any employee

affected by it.

10.03 Each of the parties hereto will jointly share the expenses of the Arbitrator, if any.

10.04 The Arbitrator shall not be authorized to make any decision inconsistent with the

provisions of this Agreement, nor to alter, modifY or amend any part of this

Agreement.

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ARTICLE 11

SENIORITY

11.01 Newly hired employees shall serve a probationary period of ninety (90) shifts

worked within a twelve (12) month period and shall have no seniority rights

during this period. Upon completion of the probationary period, a new employee

shall have his seniority dated back ninety (90) shifts worked. During the

probationary period an employee shall be considered as being emp Joyed on a trial

basis.

11.02 Seniority shall mean an employee's length of continuous service with the

Employer on a plant wide basis. An employee shall maintain and accumulate

seniority under the following conditions:

(a) during a period when he is prevented from performing his work for the

Employer by reason of injury arising out of and in the course of his

employment for the Employer and for which he is receiving compensation

under the provisions of the Workplace Safety and Insurance Board;

(b) during the first ninety (90) days of a personal leave of absence;

(c) during any period of lay off, subject to Article 11.05 (e);

(d) during a leave of absence for Union business up to a maximum of ninety

(90) days.

11.03 The Employer will consider the skill, ability and qualifications of the employee to

perform the normal required work which is available in determining which

employee is to be laid off or recalled from lay off and provided the senior

employee possesses the skill and ability and qualifications to perform the normal

required work available, he will be the last to be laid off and conversely, the first

to be recalled from lay off. In a lay off situation, an employee may exercise his

seniority to bump a junior employee at an equal or lower job class only. This

Article will only apply provided the Employer is operating on a one shift basis.

However, when there is a two shift operation, in the event there is a layoff during

a work week those employees on the afternoon shift will be laid off for the day

following notification of layoff, after which they may exercise their seniority and

bumping rights.

11.04 Seniority lists will be supplied to the Union and posted on the bulletin board on

January 1st of each year of this Agreement.

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11.05 Seniority once established for an employee shall be forfeited and the employee's

employment shall be deemed to be terminated under the following conditions:

(a) if he quits;

(b) if he retires;

(c) if he is discharged for just cause and not reinstated through the Grievance

Procedure;

(d) if he fails to report for duty after a lay off or leave of absence m

accordance with the provisions of this Agreement;

(e) if he has been laid offfor a period of eighteen (18) continuous months;

(f) if he is absent from work for more than two (2) consecutively scheduled

working days without notifying the Supervisor and giving a justifiable

reason;

(g) if he is absent from work for more than two (2) consecutively scheduled

working days without a reasonable excuse for the period of absence.

11.06 When recalling an employee after lay off, he shall be notified by registered mail or

telegram and allowed five (5) working days from the date of the notice to report

for work and, in the meantime, if an employee is recalled and is not immediately

available for work, other employees in seniority standing may be recalled but will

be temporarily employed until the senior employee reports within the five (5)

working day period as outlined. An employee to whom a registered letter or

telegram is sent in accordance with this Article must contact the Employer within

two (2) working days of receipt of the notice of return to work if he wishes the

Employer to hold the job open for him for the full two (2) working day period. It

shall be the employee's responsibility to keep the Employer notified as to any

change of his address or telephone number so that they will be up to date at all

times.

11.07 Employees promoted to supervisory positions or positions not covered by this

Agreement will retain their seniority after promotion and if transferred back into

the bargaining unit the time served in such position shall be included in their

seniority standing, up to a maximum of twelve (12) months, unless otherwise

mutually agreed.

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ARTICLE 12

NO STRIKES OR LOCK OUTS

12.01 In view of the orderly procedure established by this Agreement for the settling of

disputes and the handling of grievances, the Union agrees that, during the lifetime

of this Agreement, there will be no strike, picketing, slowdown or stoppage of or

interference with work or production, either complete or partial, and the Employer

agrees that there will be no lock-out of employees. The Local and Union agree

that if any such collective action takes place, they will repudiate it forthwith and

require their members to return to work.

ARTICLE 13

ABSENCES FROM WORK

13.01

13.02

13.03

13.04

The Employer may grant a leave of absence of up to one (I) month without pay to

employees for legitimate personal reasons. The employee must renew such a

leave of absence at the end of each one (I) month period. Leave of absence shall

not be granted to an employee for the·purpose of working elsewhere.

Any leave of absence granted by the Employer shall be in writing and shall set out

the length of leave of absence granted, the purpose of the leave and the terms, if

any, on which it is granted.

Employees shall receive pregnancy, parental, personal emergency, family

medical leave and all other applicable leaves of absence without pay in

accordance with the provisions of the Employment Standards Act, 2000."

With respect to unpaid personal emergency leave (which includes all

absences for personal illness, injury and medical emergency):

a) An employee will not be required to provide documentation substantiating

the first five (5) unpaid personal emergency leave days the employee uses in

each calendar year.

b) For the sixth (61h) unpaid personal emergency leave day onwards in each

calendar year,

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i) if the absence is due to personal illness, injury or medical emergency, the employee must provide a doctor's note satisfactory to the Company; and

ii) if the absence is due to any other type of unpaid personal emergency leave, the employee will be required to provide the Company with evidence reasonable in the circumstances that he or she is eligible for personal emergency leave.

c) When an employee is absent for three (3) or more consecutively scheduled

working days due to personal illness, injury or medical emergency, the

employee must provide the Company with twenty-four (24) hours notice

before returning to work and must provide a doctor's note clearing the employee to return to work.

d) The Company will reimburse an employee the cost of up to five (5) doctor's notes in each calendar year. Any additional doctor's notes that

are required under this Article will be at the employee's cost.

ARTICLE 14

HEALTH AND SAFETY

14.01

14.02 (a)

The Employer and the Union agree that they mutually desire to maintain high

standards of safety and health in the workplace in order to prevent injury and

illness.

A Joint Health and Safety Committee (hereinafter referred to as "the Committee")

shall be established which is composed of an equal number of Union and

Company representatives, with a minimum of four (4) members. "The

Committee" shall be co-chaired by one (1) Union representative and one (1)

Company representative. "The Committee" shall hold meetings at least once per

month, or more frequently if requested by the Union or by the Company, to jointly

review; workplace accidents, their causes and recommendations to prevent their

recurrence; monitoring; inspecting; investigating; reviewing and improving

health, safety and environment conditions and practices, any other matters seemed

appropriate by the members of "the Committee". Minutes of all meetings shall be

taken by both the Company and the Union representatives on a rotating basis and

jointly approved copies shall be provided to both the Company and the Union

within five (5) working days. The minutes shall indicate what action has been

taken with respect to suggestions or recommendations previously made, and if no

action has been taken, the reasons therefore shall be given.

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(b) The Employer will continue to pay for a member of the bargaining unit to become and

remain qualified as the "certified member".

14.03 Each calendar year, the Company will reimburse full time employees and casual

employees, who have completed their probationary period, for safety footwear as

follows:

Year 1 of the Collective Agreement: Up to one hundred ten ($110.00) dollars

per employee upon submission of an original receipt from an approved retail

outlet

Year 2 of the Collective Agreement: Up to one hundred and fifteen ($115.00)

dollars per employee upon submission of an original receipt from an

approved retail outlet.

Year 3 of the Collective Agreement: Up to one hundred twenty ($120.00)

dollars per employee upon submission of an original receipt from an

approved retail outlet.

Year 4 of the Collective Agreement: Up to one hundred and twenty five

($125.00) dollars per employee upon submission of an original receipt from

an approved retail outlet.

Each calendar year, the Company will reimburse Forklift drivers, Add Techs, and

Maintenance only, who have completed their probationary period, for winter

clothing as follows:

Up to ninety five ($95.00) dollars per employee in each year of the Collective

Agreement upon submission of an original receipt from an approved retail outlet.

REFUSAL OF UNSAFE WORK

14.04 (a) Notwithstanding the provisions of "the Act", an employee may refused to work or

do particular work where the employee has reason to believe that:

(i) any equipment, machine, device or thing the employee is to use or operate

is likely to endanger themself or another employee, or

(ii) the physical condition of the work place of the part thereof in which the

employee works or is to work is likely to endanger themself or another

employee, or

(iii) any substance, material, agent or chemical the employee is to use is likely

to endanger themself or another employee, or

(iv) any equipment, machine, device or thing the employee is to use or operate

or the physical condition of the workplace of the part thereof in which the

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employee is to work is in contravention of: "the Act" or its regulations

and such contravention is likely to endanger themself or another employee.

(b) If as set down in Article 14.04 (i), (ii), (iii), (iv), an employee refused to work or

do particular work, the employee shall promptly report the circumstance of their

refusal to their supervisor, who shall forthwith investigate the report with the

employee and a member representing workers on "the Committee".

(c) Following the investigation in Article 14.04 (b) and any steps taken to deal with

the circumstances that caused the employee to refuse to work or do particular

work, if the employee continued to have reasonable grounds to believe that

carrying out the work would endanger themself or another employee, then an

inspector from either the Ministry of Labour or the Ministry of Environment, as

appropriate, shall investigate the refusal to work and shall give a decision in

writing as soon as possible.

(d) Pending the outcome of the investigation in Article 14.04 (c) above, the employee

shall be found reasonable alternative work until such time that the job has been

made safe or determined to be safe to work on.

(e) Pending the outcome of the investigation in either Article 14.04 (c) above and the

decision of the "Certified Member" and/or the Inspector, no employee shall be

assigned to use or operate the equipment, machine, device or thing or to work in

the workplace or the part thereof or to work with any substance, material, agent or

chemical which is being investigated until the job in question has been deemed

safe to operate thereof or to work with any substance, material, agent or chemical

which is being investigated until the job in question has been deemed safe to

operate by the "Certified Member" or by an Inspector.

ARTICLE 15

NO DISCRIMINATION

15.01 There shall be no discrimination by the Employer or the Union or its members

against any employee, because of grounds as defined by the Ontario Human

Rights Code.

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ARTICLE 16

JOB POSTING

16.0 I When a new job classification is permanently created or additional employees are

permanently required in an existing job classification, the Employer will post a

notice of the vacancy for a period of five (5) working days on the Plant bulletin

board. The notice will specifY the nature of the job, the shift, qualifications

required and the rate of pay. An employee who wishes to be considered for the

position so posted shall signifY his desire by making written application to the

person designated on the posting within the five (5) working day posting period

aforesaid. A copy of each posting shall be given to the Union.

16.02 In filling any posted vacancy in the skilled and semi-skilled classifications under

this Article, the Employer will consider the requirements of the operations and the

skill, ability, and the qualifications of the individual to perform the normal

required work and, where these are relatively equal, seniority shall govern.

In filling any posted vacancy m unskilled classifications under this Article,

seniority shall govern.

If no acceptable applications are received, the Employer reserves the right to hire.

Refer to Schedule A for listings of skilled, semi-skilled and unskilled

classifications.

16.03 If the successful applicant, during the first thirty (30) days of the new assignment,

fails to satisfactorily perform the job within the said period or desires to return to

his former position, he shall be returned to his former position without loss of

seniority. During the thirty (30) day period if an employee is removed from the

job he was awarded, the Employer will advise the employee in writing of the

reasons why he is being removed and being returned to his former position. It is

understood that an employee who successfully bids into a permanent position may

be by-passed for temporary vacancies that may arise during the first thirty (30)

days in the new assignment. It is also understood that the employee will remain

eligible to bid on potential permanent vacancies during this period.

The Company shall endeavour to provide two (2) consecutive working weeks of

training within the thirty (30) day period, to successful applicants to skilled

positions.

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The Company and the Union may, by mutual consent, extend the thirty (30) day

period.

16.04 The name of the successful applicant will be posted immediately on the bulletin

board. A copy of each successful applicant's posting shall be given to the Union.

16.05 Where an applicant does not receive the position applied for, upon request to

management, he will be given reasons in writing why his application was refused.

16.06 A successful candidate for a maintenance position will be paid a rate of pay

between the start rate and the end rate depending upon his experience, provided

the employee is not paid Jess than his former rate of pay.

ARTICLE 17

HOURS OF WORK AND OVERTIME

17.01 (a) A normal work day shall be eight (8 hours per day I 5 day schedule) or ten (10

hours per day I 4 day schedule) and will include a half (112) hour paid lunch. This

does not constitute a guarantee of hours per day.

17.02

17.03

17.04

(b) The normal work week shall be forty ( 40) hours per week. This does not

constitute a guarantee as to hours of work per week.

(c) The Company agrees to provide two (2) weeks written notice where possible to all

employees if they require to change from either a 10 hour per day I 4 day or 8 hour

per day I 5 day schedule.

A rest period of fifteen (15) minutes when on a 10 hour shift, will be granted

during each half (112) shift.

Work which is authorized in excess of forty ( 40) hours per week will be paid at

the rate of one and one-half (1 112) times the employee's regular hourly rate of

pay.

The Employer may schedule hours of work in excess of those referred to in this

agreement and require employees to work such hours. The Employer agrees to

seek volunteers to perform work from among those employees on shift, first

within the classification by seniority and then to the senior qualified employee

outside of the classification if applicable. In the event of insufficient volunteers,

the Employer shall assign overtime work to the most junior employees first, who

are qualified to perform the required work.

17.05

17.06

17.07

17.07 (a)

(b)

20

The Company may seek volunteers to perform work during holiday long

weekends, but will not assign mandatory overtime work during holiday long

weekends.

There shall be no duplicating or pyramiding of overtime hours.

In order to qualify for overtime pay, the employee must have worked his normal

work week. Work performed in excess of the employee's normal workday and

work performed on a Saturday will be paid at time and one-half unless the

employee has missed a day during the week without a justifiable absence. In the

event the employee does not have a justifiable reason for his absence, then the

work performed will be paid at straight time. Work performed on a Sunday will

be paid at two times if Sunday is the seventh (7'h) consecutive day worked by the

employee, otherwise it will be paid at time and one-half, subject to the employee

completing his normal work week and to the provisions of this article.

Any changes in hours of work or changes in schedules will be discussed with the

Union before any changes are made. This article does not apply to the scheduling

of overtime.

Subject to business conditions, the Employer may offer a summer hours program

to its employees. In any given year, if the Company determines that a summer

hours program is feasible, it will advise the Union by April 15'h of that year. At

that time, the hours of work will be discussed with the Union before any changes

are made.

ARTICLE 18

TEMPORARY VACANCIES

18.01

18.02

(a)

A temporary transfer is a transfer initiated by the Company to fill a vacancy of a

duration of thirty (30) calendar days, or for a longer term if agreed to by the

parties to this Agreement.

Any employee who, for the convenience of the Company, is temporarily

transferred to another job in which the rate of pay is different from that in effect in

such employee's regular job, shall be paid, while so employed as follows:

If the rate of pay in the job to which he is transferred is less than the employee's

regular pay he shall receive his own regular rate of pay;

(b)

18.03

18.04

21

If the rate of pay in the job to which he is transferred is higher than the employee's

regular pay, he shall receive the higher rate of pay of the job to which he is

temporarily transferred.

Employees transferred under this Article, if any rate change is required, shall

receive the higher rate after working on the job for fifteen (15) minutes.

A temporary vacancy of thirty (30) days or less shall be filled by the senior

employee available provided the senior employee possesses the skill, ability and

qualifications to perform the required work.

Notwithstanding the above, employees in maintenance positions will not fill

temporary vacancies of thirty (30) days or less unless assigned to do so by the

Company to meet business needs.

If the vacancy will exceed thirty (30) days, it will be posted in accordance with

Article 16.

ARTICLE 19

BULLETIN BOARDS

19.01 The Company will provide for the use of the Union a bulletin board in this Plant

which shall be restricted to the posting thereof of:

1) Notices of Union recreation and social affairs;

2) Notices of Union elections, appointments and results of elections;

3) Notices of Union meetings;

4) Notices concerning Company policy affecting the said Union. This

bulletin board shall be locked and a key provided for the Company and the

Union.

19.02 Such Notices must be approved by the Employer prior to their being posted and

such approval will not be umeasonably withheld.

22

ARTICLE20

BARGAINING UNIT WORK

20.01 Management may perform bargaining unit work provided it does not result in a

lay off of a bargaining unit employee or the extension of a lay off of a bargaining

unit employee. In the event that during a regular shift or an overtime shift, the

shift is short-handed, a bargaining unit member will be assigned to a higher

paying job and a supervisor will be allowed to perform work in a lower paying

job.

ARTICLE21

Leave open for future use.

ARTICLE22

WAGE RATES

22.01 Job classifications and wage rates are set out in Schedule "A" to this Agreement.

ARTICLE23

HOLIDAYS

23.01 Subject to Article 23.02, employees will receive the following holidays with pay:

New Year's Day Labour Day

Family Day Thanksgiving Day

Good Friday Christmas Eve

Victoria Day Christmas Day

Canada Day Boxing Day

Civic Day

23.02 Employees shall be eligible to be paid their normal hourly rate of pay up to

a maximum of ten (I 0) hours for a holiday noted above, provided they:

a) work the scheduled shift immediately prior to the holiday and the

first scheduled shift after the holiday, unless they have received

prior written permission to be absent for one of the qualifying days;

23

23.03 If a holiday falls on a Saturday or Sunday, the Employer will designate whether

the holiday will be observed on the prior Friday or the following Monday.

23.04 Time worked on a holiday shall be compensated at a rate of one and one-half (I

1/2) the employee's regular hourly rate of pay in addition to the holiday pay if the

employee qualifies for that holiday pay under Article 23.02. There shall be no

duplicating or pyramiding of premium pay for overtime worked and hours worked

on a holiday.

23.05 If one of these holidays falls within an employee's vacation time, the employee is

entitled to an additional vacation day, or if mutually agreed an extra day's pay. Its

date is to be agreed upon before hand by the employee and the Employer.

ARTICLE24

VACATION

24.01 The date for determining vacation entitlement in each year shall be May 31. The

employee must then take his vacation entitlement during the period of June I to

May 31. Employees will be allowed to work their weeks of scheduled vacation if

they choose to do so.

24.02 Employees will be entitled to vacation according to the following schedule:

Continuous Service on May 31

Less than one (I) year's service

One (I) year's service

Six (6) years' service

Ten (10) years' service

Twenty (20) years' service

Vacation Period

I day for each month of service (max. I 0 days)

2 weeks

3 weeks

4 weeks

5 weeks

Remuneration

4% of total wages earned

4% of total wages earned

6% of total wages earned

8% of total wages earned

I 0% of total wages earned

24.03 For the purposes of this Article, "total wages" means wages paid for hours

actually worked and vacation pay paid during the previous year, June 1 to May 31.

24.04

24.05

24.06

24.07

24

Employees must take their vacation entitlement or pay in lieu thereof in the year it

becomes due and shall not be entitled to carry over vacation time from year to

year.

Vacation must be taken at such times as are approved by the Employer having

regard to the need to maintain efficient operation. Vacation choice is granted in

order oflength of service, subject to the limitation that no employee may take

more than two (2) consecutive weeks of vacation between July 1 '1 and

September 1 '1 of each year. . It is agreed that not more than one (I) person per

shift per job class shall be allowed to take vacation at the same time with a

maximum of four (4) people per shift at the same time. Should the Company

decide to shut down the entire plant, or certain sectors of the plant during the

vacation period, employees can be required to take part of their vacation or their

entire vacation (up to a maximum of two (2) weeks) during the closure period.

Employees shall be able to draw vacation pay owed a maximum oftwo (2) times

per year. The Company will endeavour to accommodate vacation requests subject

to operational requirements being met.

Employees shall submit their request for vacation in writing prior to April 1 for

the calendar year in which the vacation is due.

When vacation is taken as time off work, the Employer will ensure that vacation

pay is paid the following pay period. When applicable, the withdrawal by the

employee from the vacation accrual account will also be reflected in the pay

period the week following notification by the employee.

ARTICLE25

BEREAVEMENT LEAVE

25.01 An employee will be granted leave of absence, without loss of pay, in order to

attend the funeral, unless it is unreasonable to expect the employee to attend the

funeral given its location, of members of his family for up to the maximum of

days set forth in the following schedule:

(a) Five (5) days in the event of the death of the employee's spouse, child or

legally adopted child;

(b) up to three (3) days in the event of the death of the employee's father,

mother, brother or sister, father-in-law, mother-in-law, brother-in-law,

sister-in-law, son-in-law or daughter-in-law;

(c) one (I) day for funeral in the event of the death of the employee's

grandparents, grandchildren or spouse's grandparents;

25.02

JURY DUTY

25

(d) payment will be made for only that portion of the allotted time which falls

within the employee's regular scheduled work week. During vacation

where an employee's scheduled vacation is interrupted due to bereavement, the employee shall be entitled to bereavement leave. The

portion of the employee's vacation, which is deemed to be bereavement

leave, will not be counted against the employee's vacation credits or holidays.

On request of the employee and for compassionate reasons, bereavement leave

may be extended by two (2) additional days without pay.

In order to be eligible for pay, for the above-noted bereavement leave, the

employee must submit proof of death.

ARTICLE26

26.01 An employee who is selected for service as a juror or subpoenaed as a crown

witness will be compensated for loss of pay from the employee's regularly

scheduled hours at the employee's regular hourly rate less the fee received for

services as a juror. However, after the employee has completed jury duties, the

employee is required to return to the Employer's premises to complete the

employee's remaining normally scheduled work day.

ARTICLE27

REPORTING PAY

27.01 Unless employees are notified not to report for work, employees who report for

work at their regular starting time and for whom no work is available, shall

receive not less than four ( 4) hours of any work that is available at their normal

rate of pay, or if no work is available shall receive four ( 4) hours' pay at their

straight time hourly rate. This provision shall not apply if the failure to provide

work is caused by reason of a strike or other work stoppage, fire, flood, snow

storm, power failure, or other like cause beyond the control of the Employer.

26

ARTICLE28

CALL IN

28.01 An employee who has completed his shift and left the Company's premises and is then recalled to work extra time shall be paid time and one half (1 1/2) and will receive not less than the equivalent of four (4) hours pay at the employee's regular

rate of pay for such additional work. This shall not apply where the employee is called in and continues to work into his next scheduled shift or where the employee is asked to continue to work following his scheduled shift.

ARTICLE29

BENEFIT PLANS

29.01 The Employer agrees to pay the premium in accordance with Article 29.05, for existing health and welfare plans as listed below, during the life of this Agreement in accordance with the terms of the plan(s) for each non-probationary employee. All the benefits are described more particularly in the plans for Extended Health

Care, AD&D, Dental Plan, Basic Life Insurance, Long Term Disability.

The Employer agrees to increase vision care coverage to:

• First year of the collective agreement $275.00

• Second year of the collective agreement $285.00

• Third year of the collective agreement $295.00

• Fourth year of the collective agreement $305.00

payable once every two years.

The Employer shall provide a drug card.

The Employer agrees to update and maintain Ontario Dental Association fee

schedule to current Ontario Dental Association fee schedule.

Short Term Disability amount will be equal to 66.67% of weekly earnings to a

maximum of:

$470.00 per week in each year of the Collective Agreement.

29.02 The Employer's obligation is restricted to the payment of premiums. Employees should refer to the plan documents to identifY the limitations and exclusions of the

29.03

29.04

29.05

27

various plans. Any dispute over payment of benefits under any such plan or

policy shall be adjusted between the employee and the insurer concerned.

In order to continue coverage under the plans, employees on a leave of absence

must pay to the Employer the equivalent of the total benefit premiums for the

duration of the leave.

The Employer shall only be required to remit the premium payments referred to

above for employees who are not actively at work for the month following the

month in which the absence occurs, excluding employees on a pregnancy/parental

leave who shall be covered by the Employment Standards Act.

The Employer agrees to pay the above-noted premium in accordance with the

following schedule:

(a) Premium cost- After three (3) months of employment

70% Employer contribution 30% Employee contribution

(b) Premium cost - After two (2) years of employment

90% Employer contribution 10% Employee contribution

(c) Premium cost- After three (3) years of employment

100% Employer Paid

PENSION PLAN

29.06 (a) The Employer shall allow the employees covered by this Collective Agreement to

enrol and be covered by the Employer's Pension Plan. If the employee enrols, the

Plan shall provide a monthly Pension for a defined benefit as follows. Credited

service shall commence based on the date of membership in the Plan.

Year(s) of Credited Service as a Member Monthly Pension Per Year of

of the Plan Credited Service

Credited service up to November 7, 2011 $22.75

Credited service from November 8, 2011 $23.25

to November 7, 2012

29.06 (b)

29.06 (c)

28

Credited service from November 8, 2012 $23.75

to November 7, 2012

Credited service from November 8, 2013 $24.25

to November 7, 2014

Credited service from November 8, 2014 $25.00

onwards.

Employees shall also be entitled to participate in the contributory option of the

Pension Plan. For each employee who voluntarily contributes a percentage of

their previous year's earnings which is restricted to either one percent (1 %), two

percent (2%), three percent (3%) or four percent (4%) of the previous year's

earnings, the Employer will match the contribution at a rate of twenty-five percent

(25%) of the dollar calculation. For example, if the employee contributes One

Hundred Dollars ($100.00), the Employer will match by contributing Twenty-five

Dollars ($25.00).

The terms and conditions of the contributory and non-contributory options of the

Pension Plan including enrolment, coverage and entitlement will be subject to and

governed by the terms of the Pension Plan.

ARTICLE30

DURATION OF AGREEMENT

30.01 This Agreement shall become effective on the 8th day of November, 2011 and

shall remain in effect until the 7th day of November, 2015 and shall continue in

force from year to year thereafter, unless either party shall furnish the other with

notice of termination or proposed revision of this Agreement not more than ninety

(90) days before the 8th day of November, 2015, or in a like period in any year

thereafter.

SIGNED THIS

~!\= ~ \

0

29

SCHEDULE "A"

Automatic Payroll Deposit

Employees will be paid via direct deposit. Every effort will be made to provide pay stubs by 4:00

p.m. on pay day unless there are extenuating circumstances. It shall be the responsibility of the

employee to report any discrepancies or inaccuracies in his/her pay and such corrections shall be

adjusted as soon as reasonably possible!

Eff. 11/8/2011 Eff. 1118/2012 Eff. 1118/2013 Eff. l118/2014

CLASSIFICATION RATE RATE RATE RATE

Skilled

Operator $19.67 $20.16 $ 20.66 $21.28

Additive Technician $18.56 $19.03 $19.50 $20.09

Additive Tech!Maint. $17.78 $18.22 $18.68 $19.24

Maintenance Mechanical Electronics $19.80 $20.30 $20.81 $21.43

(start) $17.01 (start) $17.44 (start) $17.88 (start)$18.42

Maintenance $19.78 after 2 $20.27 after 2 $20.78 after 2 $21.40 after 2

years of experience years of experience years of experience years of experience

in class in class in class in class

Maintenance Helper $17.01 $17.44 $17.87 $18.41

Industrial Maintenance $22.92 $23.49 $24.08 $24.80

Mechanic

Quality Monitor $17,01 $17.44 $17.87 $18.41

Technician

Shipper/Receiver $17.01 $17.44 $17.87 $18.41

Forklift Operator (2) $16.35 $16.76 $17.18 $17.69

Lines

30

Forklift Operator/(!) $15.36 $15.74 $16.13 $16.61 Line

Eff. 11/8/2011 Eff. 11/8/2012 Eff. 11/8/2013 Eff. 11/8/2014

CLASSIFICATION RATE RATE RATE RATE

Semi-Skilled

Sealer $16.02 $16.42 $16.84 $17.34

Utility (start) $13.48 (start) $13.82 (start) $14.17 (start) $14.59

$14.36 after 3 $14.72 after 3 $15.09 after 3 $15.54 after 3 months of months of months of months of experience in class experience in class experience in class experience in class

Janitor/Utility Person (start) $13.48 (start) $13.82 (start) $14.17 (start) $14.59

$14.36 after 3 $14.72 after 3 $15.09 after3 $15.54 after3 months of months of months of months of experience in class experience in class experience in class experience in class

Shift Premiums $00.50 $00.55 $00.55 $00.60

The Company agrees to train all employees in the "Operator" classification in security

procedures.

The Company reserves the right to assign security duties and responsibilities as it deems necessary.

31

LETTER OF UNDERSTANDING- INDIAN ACT- BENEFITS

This letter covers employees who possess official Indian status under the Indian Act.

Provided, these employees receive health, dental care and vision care benefits from another

source without cost the Employer, the Employer shall pay 100% of the premium cost for life

insurance and LTD after three (3) months of employment. Article 29 will apply in all other

respects.

UNION EMPLOYER

32

LETTER OF UNDERSTANDING- ADDITIVE TECHNICIAN TRAINEE

The Employer agrees to train one (1) person as a back up to the Additive Technician. The

Employer will post a position called "Additive Technician Trainee" and will fill the position in

accordance with Article 16. The Employer will provide training to the successful applicant for a

maximum of two (2) weeks during which the employee will continue to receive his current rate

of pay. The employee will not receive the Additive Technician rate of pay during the training

period. After the training is completed or two (2) weeks have elapsed, whichever occurs first, the

employee will return to his former position.

2011.

EMPLOYER

33

LETTER OF UNDERSTANDING- TRAINEE POSITIONS

Where the Company creates other trainee positions (e.g. Maintenance Helper, QA testing), such positions will be filled in accordance with Article 16. The Employer will provide training to the successful applicant for a maximum of two (2) weeks during which time the employee will continue to receive his current rate of pay. The employee will not receive the rate of pay for the position during the training period. After the training period is completed or two (2) weeks have elapsed, whichever occurs first, the employee will return to his former position.

This letter of understanding in no way alters or amends the lay off procedures as set out in Article 11.03.

2011.

UNION EMPLOYER

34

LETTER OF UNDERSTANDING- TEMPERATURE WITHIN PLANT

The Employer and Union agree to refer the issue of the temperature inside the plant

during the summer season to the Joint Health and Safety Committee. The Employer will draw on

both internal and external resources and will develop a Management recommendation of options

to resolve this issue to the Joint Health and Safety Committee by December 31, 2004.

2011.

EMPLOYER

35

LETTER OF UNDERSTANDING- CASUAL EMPLOYEES

This is to confirm the understanding between the parties with respect to the use of casual

employees. The parties agree that, under the following conditions, the Company may employ

casual employees:

l.) Casual employees may be hired during peak production periods, for vacation relief,

for special programs or to cover for temporary absences due to illness, injury or

approved leaves of absence.

2.) For the first 90 shifts worked in a twelve-month period, a casual employee will be

paid the start rate for the Utility classification, after which they will be paid the full

rate of the Utility classification.

3.) There will be a separate seniority list maintained for casual employees. A casual

employee will have their name added to the seniority list after they have worked for a

period of time equal to (90) ninety shifts worked in a twelve month period. When it

is necessary to bring in casual employees to supplement the needs of the business,

such work will be made available first to the senior qualified casual employee who

has completed the probationary period.

4.) Casual employees will be the first to be hired into a full time position, in order of

seniority, in the event the Company requires additional full time employees.

5.) Casual employees will not be covered under the terms of the Group Insurance and

Pension Plans.

6.) It is not the Company's intention to replace bargaining unit positions with casual or

temporary employees. Casual employees will be laid off prior to any layoff of

seniority employees.

7.) Casual employees who have worked for ninety (90) shifts in a twelve month period

and are subsequently hired into a permanent position will not be required to serve an

additional ninety (90) shifts probationary period.

2011

36

LETTER OF UNDERSTANDING- HUMANITY FUND

The Company agrees to deduct on a weekly basis the amount of $0.01 cents per hour from the

wages of employees in the bargaining unit for all hours worked and to remit the amount so

deducted by the fifteenth day of the month following to United Steelworkers, National Office,

234 Eglinton Ave. East, Suite 800, Toronto, Ontario M4P 1K7, and to advise in writing both the

Humanity Fund at the aforementioned address and the Local Union that such payment and the

names of all employees in the bargaining unit on whose behalf such payment has been made.

2011

UNION EMPLOYER

37

LETTER OF UNDERSTANDING TECHNOLOGICAL CHANGE

In the event of the implementation of technological change the Company shall meet with the

Union to discuss these changes.

The Company shall provide any required training to the effected employees.

2011.

UNION EMPLOYER

38

LETTER OF UNDERSTANDING- ABSENTEEISM

This letter confirms discussions between the Company and the Union during the recently concluded negotiations with respect to employee attendance at work.

The Union acknowledges that the Company has emphasized that regular employee attendance is essential to the proper and efficient functioning of the facility and that absenteeism (including lateness, non-attendance at work and early departures from work) is damaging to the business.

The Company has advised the Union that it will develop an attendance management policy. The Company has agreed that it will consult with and seek input from the Union prior to the implementation of the Company's attendance management policy.

UNION EMPLOYER

39

LETTER OF UNDERSTANDING- SWIPE CARDS

The parties agree and acknowledge that it is the responsibility of employees to ensure that

they have their swipe cards in their possession while at work and swipe as required by

Company policy, which currently requires an employee to swipe prior to and after their

shift and at the beginning and end of their lunch break each working day.

The Company advised the Union during collective bargaining that it will immediately cease

its past practice of permitting employees to swipe up to three (3) minutes late without

penalty.

If an employee swipes late or fails to swipe:

a) The employee will only be paid for the time worked. If an employee forgets their

swipe card or their swipe card malfunctions, the employee must check in with

their supervisor at the times they are ordinarily required to swipe; and

b) After the third occurrence oflate swiping and/or failing to swipe during any

quarter of the calendar year (i.e. January to March, April to June, July to

September or October to December), the employee will be subject to disciplinary

action.

2011

UNION EMPLOYER