COLLECTIVE AGREEMENT UNIFOR AND ITS LOCAL 40

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1 B E T W E E N: TERM: FEBRUARY 1,2015 TO MARCH 31, 2018 (hereinafter called the Company ) ONTARIO LIMITED 0/A DOWNTOWN TOYOTA - and - (hereinafter called the Union ) UNIFOR AND ITS LOCAL 40 COLLECTIVE AGREEMENT

2 TABLE OF CONTENTS ARTICLE 1: PURPOSE.1 ARTICLE 2: RECOGNiTION 1 ARTICLE 3: MANAGEMENT S RIGHTS 1 ARTICLE 4: UNION SECURITY 3 ARTICLE 5: STRIKES & LOCKOUTS 3 ARTICLE 6: RELATIONSHIP 4 ARTICLE?: REPRESENTATION 4 ARTICLE 8: GRIEVANCE PROCEDURE 5 ARTICLE 9: POLICY GRIEVANCES 7 ARTICLE 10: SUSPENSION AND DISCHARGE 7 ARTICLE 11: ARBITRATION 8 ARTICLE 12: PROBATION 9 ARTICLE 13: SENIORITY 11 ARTICLE 14: LAY-OFF & RECALL 13 ARTICLE 15: POSTING OF JOBS 14 ARTICLE 16: LEAVE OF ABSENCE 14 ARTICLE 17: HOLIDAYS 16 ARTICLE 18: VACATIONS 16 ARTICLE 19: BULLETIN BOARD 17 ARTICLE 20: HOURS OF WORK 17 ARTICLE 21: OVERTIME 18 ARTICLE 22: HEALTH AND SAFETY 18 ARTICLE 23: FAULTY WORKMANSHIP OR EMPLOYEE NEGLIGENCE 19 ARTICLE 24: MEDICAL REPORTS 19 ARTICLE 25: GENERAL 19 ARTICLE 26: DURATION 21 LETFER OF UNDERSTANDING 22 LETTER OF UNDERSTANDING 24 LETTER OF UNDERSTANDING 25 LETTER OF UNDERSTANDING 28

3 LETTER OF UNDERSTANDING.29 LETTER OF UNDERSTANDING 30 SCHEDULE A WAGES AND GROUP HEALTH AND WELFARE BENEFITS 31 SCHEDULE B SUMMARY OF SHOP RATES FOR CURRENT EMPLOYEES OF THE EMPLOYER FOR PERIOD FEBRUARY 1,2015 TO JANUARY 31,

4 ARTICLE 1: PURPOSE 1.1 It is the purpose of both parties to this Agreement: (a) (b) (c) (d) (e) (f) ARTICLE 2: To maintain harmonious relations between the Company and its employees; To recognize the value of joint discussions and negotiations; To encourage continuous efficiency in the Company s operations including quality service and customer satisfaction, and to promote the effective and efficient delivery of services to its clients; and To provide a mechanism for the prompt adjustment of grievances which may arise. To establish rates of pay, and working conditions of employment which are fair to the employees and consistent with the Company s objectives and obligations while recognizing that the well-being of the Company and that of its employees depends upon the financial well-being of the Company s business as a whole. It is understood that any policies that are established by management will not be construed to deprive employees of such rights and privileges that are referred to in this Agreement. RECOGNITION 2.1 The Company recognizes that the Union is the sole and exclusive bargaining agent for all employees of the Company in the City of Toronto save and except for foremen, supervisors, persons above the rank of foreman and/or supervisor, sales staff, receptionists, office, clerical and administrative employees, students, and shuttle bus drivers. ARTICLE 3: MANAGEMENT S RIGHTS 3.1 The Union recognizes and acknowledges the Company has and retains all the rights, functions, powers, privileges, and the authority that it possessed prior to the signing of this Agreement except to the extent that those rights are specifically relinquished or restricted by this Agreement. The Union recognizes that all management rights and prerogatives and the direction of the working forces, and the management of the Company s enterprise, are vested exclusively with the Company and without limiting the generality of the foregoing the exclusive functions of the Company shall include the following rights: (a) (b) To operate and manage its business in every and in all respects; To maintain order, discipline, efficiency amongst its employees and in connection therewith to establish and enforce rules, regulations, policies and practices from time to time to be observed by its employees. The Company reserves the right to amend or introduce new rules from time to time;

5 -2- (c) (d) (e) (f) (g) To select, hire, retire, transfer, lay-off, recall, promote, demote, classify, assign duties, discharge, suspend, or otherwise discipline employees for just cause, provided that a claim that an employee who has been discharged or disciplined without just cause (except in the case of probationary employees) can be the subject of a grievance and dealt with as hereinafter provided; to determine whether vacancies exist and to hire persons to fill vacant positions or newly created positions; To determine the nature and kind of business conducted by the Company, the kinds and locations of its operations, the services to be rendered, the kinds of machines and/or equipment to be used, the methods of operating and control of materials or goods to be used, the control of materials and parts, the quality, quantity, and required efficiency of production and provision of services; To have the right to plan, direct and control the work of the employees, the operations of the Company, and the schedules and procedures of work. This includes the right to introduce new and improved methods, facilities, machinery, technology, and equipment, and to direct and control the amount of supervision necessary; to combine or split up departments, or classifications, or work locations, work schedules, and to increase or reduce personnel in any particular area, or on the whole, and the number of employees required for the Company s purposes; and to reduce or increase normal hours of work per day or per week and to establish starting and quitting times; to assign employees to shifts as required; to determine the starting and quitting times; To determine the schedules of work, the number of shifts, job content and requirements, quality and quantity standards, the qualifications of employees; to select and retain employees for positions excluded from the bargaining unit; To establish standards of service; to amend or modify standards; to establish and administer tests for the purposes of enabling the Company to determine standards for safety in the workplace and employees skills, and abilities from time to time; to determine new methods to be used; to determine the requirements of a job and the qualifications of an employee to perform the work required. 3.2 The Company agrees that it will not exercise its functions in a manner inconsistent with the provisions of this Agreement. 3.3 Failure by the Company to exercise any of its management rights shall not be considered as abandonment of any of such rights. 3.4 The Company shall have the right to assess the relative efficiencies and the level of job performance of any employee and may, in its sole discretion, pay wages in excess of those referred to in this Agreement, and/or such performance bonuses to employees who have consistently demonstrated extraordinary job performance in each year of this Agreement. Such wages or performance bonus will be determined by the Company and will be considered to be completely separate and apart from this Agreement and will be regarded as a discretionary payment which the Company may choose to pay or not pay

6 -3- from time to time during the term of the Agreement. Such special rates or discretionary bonuses shall not be negotiable and shall not become the basis for a wage increase in the scale in the classifications concerned, and will not be regarded as an established practice of any kind whatsoever. To the extent that the Company has paid any bonuses at any time, the parties acknowledge that such bonuses were and continue to be within the Company s discretion. ARTICLE 4: UNION SECURITY 4.1 The Company agrees, when authorized in writing by the Union, to deduct from the wages of all employees within the bargaining unit, Union initiation fees and monthly dues as established by the Union from time to time. The Company shall remit the amounts that have been deducted from each employee by the 25th of the following month following the month in which such deductions have been made. The Company will remit by cheque to the Financial Secretary of Local 40, UNIFOR the total of the deductions made together with a list of those employees from whom deductions have been made and a list of those employees who did not have union dues deducted and the reason why no deduction was made. When the Union wishes to alter the amount of dues to be deducted, it will provide the Company with 30 days advance notice of the change in writing. 4.2 The Union agrees to indemnify and save the Company harmless from and against any and all claims, or other forms of liability which may arise by reason of any deductions from wages that have been made by the Company of union initiation fees and/or Union dues from employees wages in accordance with this Agreement. 4.3 The Company will indicate on employees T-4 income tax form a statement of the annual union dues which have been deducted. 4.4 The Company will provide the Union with an updated mailing list of bargaining unit employees twice in each calendar year when requested by the Union. ARTICLE 5: STRIKES & LOCKOUTS 5.1 The Union agrees that during the term of this Agreement, neither it, nor its representatives, will participate in or condone any strike or other collective action in or about the Company s premises. Any employee(s) who participate(s) in any of the activities referred to above may be subject to discipline up to and including discharge. 5.2 In the event that employees engage in any of the activities described by paragraph 5.1, the Union and its representatives (including stewards) will instruct the employee to cease such activity forthwith, return to work and perform their usual duties. 5.3 The Company agrees that it will not threaten, cause or direct any lockout of its employees for the duration of this Agreement. 5.4 The words strike and lockout shall have the same meaning given to those words in the Ontario Labour Relations Act.

7 -4- ARTICLE 6: RELATIONSHIP 6.1 The Company and the Union agree that there will be no discrimination on the basis of any ground that is prohibited by the Ontario Human Rights Code. 6.2 The Company and the Union agree that there shall be no discrimination exercised or practiced with respect to any employee by reason of his/her membership or activity, or non-membership or lack of activity in the Union. 6.3 The Union agrees that, except as expressly provided in this Agreement, there will be no union business that is conducted on the premises of the Company, except as otherwise referred to in this Agreement. ARTICLE 7: REPRESENTATION 7.1 The Company acknowledges the right of the Union to appoint or otherwise elect from the bargaining unit, a Grievance Committee that is comprised of two (2) employees for the purpose of representing employees in the handling of complaints and grievances. It is understood that one of the employees will be the Chairperson. Each committee member shall have at least one (1) years seniority with the Company at the time of his or her appointment and shall be an employee of the Company during the period that they occupy a position on the Committee. The Union will notify the Company in writing of the names of the employees on the Committee. This Committee will also form the Negotiating Committee. 7.2 (a) Committee members and employees shall continue to perform their regular duties on behalf of the Company unless permission from the Company is granted in advance, to promptly process or file a complaint or grievance, which permission shall not be unreasonably withheld while having due regard to the operational requirements of the Company. The Committee member s and or grieving employee s first obligation is the fulfillment of his duties and responsibilities as an employee of the Company. During their working hours, Committee members and employees are not entitled to engage in union activities other than the necessary involvement in the reporting, processing or filing of complaints or grievances. (b) When Committee members are permitted by the Company to leave their work during working hours in order to process grievances, the permission will be granted with the mutual understanding of the parties hereto, that the privilege will not be abused and that a Committee member will punch off a current repair order and punch in on shop time when attending to union business. 7.3 When a Committee member is permitted to be temporarily absent from his regularly scheduled hours of work in order to attend to processing a grievance, he will receive his regular rate of pay during such absence provided that the Company shall not be obliged to make any payment for time spent outside of his regular hours of work. The Company reserves the right to limit the length of any absence by a Committee member if it deems the time taken to be excessive. It is understood that only one member is required to process a grievance under this Agreement.

8 The Negotiating Committee will deal only with such matters that are properly the subject matter of negotiations, including proposals for the renewal or modification of this Agreement. 7.5 It is understood that a National Representative of the Union or local representative may be present at any meetings between the Grievance Committee and the Company, and the Company may have such advisors present as it deems necessary. ARTICLE 8: GRIEVANCE PROCEDURE 8.1 A grievance shall be defined as any difference arising out of the interpretation, application, administration or alleged violation of this Agreement, including any question as to whether a matter is arbitrable. Should differences arise between the Company and an employee or the Union with respect to the interpretation or application or an alleged violation of this Agreement, work shall continue as directed by the Company and an effort shall be made to settle such difference in accordance with the grievance procedures set out herein. 8.2 It is the mutual desire of the parties hereto that complaints of employees shall be adjusted as quickly as possible and it is understood that an employee has no grievance until he has first discussed the complaint with a member of the Grievance Committee, and also given the Company an opportunity to adjust his complaint. Informal Complaints 8.3 if an employee has any complaint or question which he/she wishes to discuss, he/she shall take the matter up with his/her immediate supervisor within two (2) working days after the circumstances giving rise to the complaint or question has originated. The supervisor then has two (2) working days to communicate a verbal response to the employee. 8.4 if such complaint or question is not settled to the satisfaction of the employee concerned within a period of one (1) working day following advice of the immediate supervisor s decision, or within such longer period as can be mutually agreed upon at the time, then the steps of the grievance procedure can be invoked. 8.5 (a) In the event that the informal complaint process does not resolve an issue, a grievance can be filed under the Grievance Procedure as set below. Grievors have the right to have a Committee member with them at any stage/meeting in the Grievance Procedure process. (b) All grievances that are filed must be signed by the grieving employee and/or Chairperson and must clearly set forth the nature of the grievance, the parties involved, the clause(s) of the collective agreement that is alleged to have been violated, and the remedies sought. The form on which grievances shall be written shall be mutually agreed upon by the Union and the Company. 8.6 Step 1

9 -6- If the decision of the Supervisor at the Informal Complaint stage, is not satisfactory to the employee concerned, he may present his grievance in writing to the Company s Department Manager (or his designate) within two (2) working days of the delivery of the supervisor s decision. The Department Manager s decision on the grievance shall be given in writing within two (2) working days following the presentation of the grievance. Step 2 If the grievance is still not resolved after receiving the Department Manager s decision, the grievance may be submitted in writing to the General Manager (or his designate) within two (2) working days following the receipt of the Department Manager s decision on the grievance. The General Manager (or his designate) will render his decision in writing within two (2) working days after receipt of the written grievance. If a mutually satisfactory resolution is not concluded following the receipt of the General Manager s decision, the grievance may be referred to arbitration within ten (10) days following the receipt of the General Manager s decision in this Step Any timelines specified in the Grievance Procedure can only be extended by mutual agreement between the Union and the Company. Where no such agreement has been made and the time limits as described have not been followed, or where an agreed extension has expired, the grievance will be deemed to be abandoned; In the event that the Company fails to respond to a grievance at any step of the grievance procedure, the Union may advance the grievance to the next step in the grievance procedure. It is understood that the time limits and other procedures set out in the Grievance and Arbitration procedures are mandatory and not merely directory. 8.8 In determining the time within which any action is to be taken or completed under the terms of this Agreement, such time limits will be exclusive of Saturdays, Sundays and statutory holidays. 8.9 No matter may be submitted to arbitration which has not been properly carried through all steps of the Grievance Procedure in the manner set out in this Agreement Once the Grievance Procedure has been exhausted and at any time prior to arbitration, both parties may mutually agree to engage a mutually agreeable mediator to assist the parties in resolving any grievance. The parties will share the cost of the Mediator on an equal basis. Any mutually agreeable resolution reached by the parties through such mediation shall be binding upon the parties. In the event that no mutually agreeable resolution is reached, a grievance may proceed to arbitration Where it appears that two (2) or more employees have the same grievance, the Union will process the grievances simultaneously and consecutively on all levels of the grievance and arbitration procedures, subject to all applicable provisions under the grievance procedure and all grievors will be listed on the grievance form.

10 If there should be an accumulation of grievances to be referred to arbitration that are of the same nature, one Board of Arbitration shall be constituted to deal with all such grievance disputes Any settlement of any grievance that is achieved at any stage of the Grievance or Arbitration procedure shall be binding upon all of the parties including the grieving employee, and the grievance that is settled shall not be made the subject matter of another grievance. ARTICLE 9: POLICY GRIEVANCES 9.1 A Policy Grievance is defined as a grievance that involves a question relating to the interpretation, application or administration of this Agreement. A policy grievance may be instituted by either the Company or the Union and submitted to the other party in writing at Step 2 of the Grievance Procedure for a written response. 9.2 The Union may institute a grievance consisting of an allegation of a general misinterpretation or a violation by the Company of this Agreement, in writing at Step 2 of the Grievance Procedure, provided that it is presented within five (5) working days after the circumstances giving rise to the grievance have originated or occurred. However, it is expressly understood that the provisions of this clause may not be used to institute a grievance directly affecting an employee or employees which such employee or employees could themselves initiate and the regular grievance procedure shall not be thereby by-passed. 9.3 The Company may institute a grievance, consisting of an allegation of a general misinterpretation of violation of this Agreement by the Union, its representatives, or any employee, in writing, dated and signed, by forwarding a written statement of said grievance to a Union representative, provided that it is presented within five (5) days after the circumstances giving rise to the grievance have originated or occurred. A meeting will then be held between the Company and the Union within fifteen (15) days. When submitting the grievance, the Company shall suggest at least three (3) alternative days, and times and places at which the meeting may be held. Failure to hold the meeting shall be deemed to be a denial of the grievance. The representative of the Union shall give its decision in writing within seven (7) days after the meeting. Failure to render such decision shall be deemed to be a denial of the grievance. Failing settlement, a grievance may be referred to arbitration by the Company by written notice of intent as set out in the Grievance Procedure. ARTICLE 10: SUSPENSION AND DISCHARGE 10.1 A claim by an employee who has completed probation, that he/she has been suspended or discharged from her employment without just cause shall be treated as a grievance if a written statement of such grievance is lodged with the Company within five (5) working days after the employee is notified of his discharge or suspension or within two (2)

11 -8- working days after the employee ceases to work for the Company, whichever is the earlier. The grievance will proceed immediately to Step 2 of the Grievance Procedure Such special grievances may be settled by confirming the Company s action in suspending or dismissing the employee or, by reinstating the employee in a manner which is just and equitable in the opinion of the conferring parties The employee will have the right to have a Committee member present at any meeting at which the employee is being terminated or suspended. An employee who has been dismissed or suspended will have the right to interview a Union Steward before leaving the premises unless the Company determines that there may be potential disruption to the workplace or to the Company s operations, or where the health and wellbeing of other employees or clients may be potentially jeopardized, in which case the employee will be required to leave the premises immediately following notification of discharge or suspension The following offences shall be deemed to be just cause for immediate discharge and discharge is hereby acknowledged to be a specific penalty within the meaning of Section 48(17) of the Labour Relations Act as amended from time to time. An arbitrator will not have jurisdiction to substitute any other penalty for termination, in respect of the following forms of employment misconduct: (a) (b) (c) (d) deliberate falsification of any Company records or Company documents which relate to an employee s duties and responsibilities with the Company; engaging in fraudulent activities in relation to the Company s business; theft; wilful damage of Company property; Notwithstanding the employment misconduct that is referred to above, the parties recognize that other employment offences or other forms of employment misconduct may also be cause for immediate discharge Any notice of disciplinary action which is intended to form any part of an employee s employment record shall be given in writing to the employee. ARTICLE 11: ARBITRATION 11.1 After exhausting the Grievance Procedure, either party can request that a grievance be referred to arbitration by notice in writing within ten (10) days following receipt of the Step 2 decision from the General Manager in the Grievance Procedure, and not thereafter. Such a request must be made in writing to the other party. No issue can be submitted to arbitration which has not been properly carried out through all steps of the grievance procedure. If a request for arbitration is not given, the Step 2 decision will be final and binding upon both parties to this Agreement and upon the employee involved.

12 S Within five (5) days following the receipt of the notice in Article 11.1 above, the parties will select arbitrators from the list of arbitrators referred to in this Article, on a rotating basis, beginning with the first name at the top of the list, to determine the grievance. If that arbitrator is not available to convene a hearing within seventy-five (75) days of the referral to arbitration, the next name on the list will be contacted. The sequence will continue until the first person on the list who is available within seventy-five (75) days is appointed as the arbitrator. It is understood that an arbitrator who is bypassed because she/he is not available within the prescribed timeframe referred to herein, will retain her/his position on the rotation until such time that such arbitrator has actually been appointed. If an arbitrator is appointed in accordance with the forgoing, the arbitrator s name will be moved to the bottom of the list and will move back up through the list on the said rotational basis. The Arbitrators on the parties agreed upon roster are therefore as follows: Gordon Luborsky William Kaplan Peter Chauvin Louisa Davie Barry Fisher Belinda Kirkwood The Company and the Union may mutually agree to add or delete an arbitrator s name to or from the list (as the case may be) at any time during the term of the Collective Agreement An arbitrator shall not have any power to alter or change any of the provisions of the Collective Agreement or to make any decision that is inconsistent with the express terms of this Agreement. The arbitrator s decision shall be final and binding on the parties hereto and the affected employee(s) Each party will pay for its own arbitration costs (ie. half the cost of the Arbitrator, costs of its own witnesses and representatives At any stage of arbitration procedure, the parties may have the assistance of the grieving employee(s) as a witness, and all reasonable arrangements will be made to permit the Arbitrator to have access to any part of the Company s premises to view any working conditions which may be relevant to the disposition of the grievance, at a reasonable time and so as not to interfere with the operations of the Company. ARTICLE 12: PROBATION 12.1 All employees must complete a probation period of sixty-five (65) working days actually worked. An employee will not be placed on any seniority list until after the successful

13 -10- completion of the probation period. Following their successful completion of the probation period, employees names shall be placed on the appropriate seniority list and their seniority shall date back to the date of last hiring Probationary employees may be terminated without just cause or laid off without any right to recall, in the sole and absolute discretion of the Company. A probationary employee will have no right or basis upon which to file a grievance in relation to his termination or lay-off and the lay-off or termination of any such probationary employee is hereby acknowledged by the parties as being deemed to have been a termination for just cause On or before the expiry date of the initial probationary period, the Company will confirm, to the employee, the decision to: (a) confirm the employee s appointment as having successfully completed his probation; or (b) terminate the employee; or (c) extend the probationary period for no more than up to an additional twenty (20) working days where there are extraordinary circumstances which do not allow the Company sufficient time to properly evaluate the probationary employee (ie. the probationary employee has been absent on any approved leaves of absence during the probationary period) It is recognized that probation is a period during which the Company has the right to assess an employee to determine whether such employee is, in the sole discretion of the Company, acceptable for continued employment after the probation period has been completed (a) A bargaining unit employee who is promoted or transferred to a position with the Company that is outside of the bargaining unit, will not be covered by this Agreement but will retain his/her seniority accumulated up to the date of leaving the bargaining unit for a period not to exceed thirty (30) calendar days from the date of the selection or appointment. Such employee will have the right within the thirty (30) calendar day period following the date of the transfer or promotion to return to the employee s former job in the bargaining unit. Time worked outside of the bargaining unit will not be counted as time worked in the bargaining unit for any purpose including seniority accumulation, (b) (c) Following the expiry of the said thirty (30) calendar day period, the employee s name will be considered deleted from any seniority list. If the employee returns or is returned to the bargaining unit by the Company within the thirty (30) calendar day period, he/she will continue to accumulate seniority from the date of return to the bargaining unit. It is understood that a bargaining unit employee has the right to either accept or decline an offer from the Company to accept a position that is outside of the bargaining unit. It is understood that if an employee who is transferred or promoted

14 -11- to a position that is outside of the bargaining unit but is subsequently returned to the bargaining unit as indicated herein, another employee who has been hired to replace the transferred or pràmoted employee may be laid off without any notice or payment in lieu of such notice in the Company s discretion, in order to accommodate the return of the transferredlpromoted employee s return to the bargaining unit and such lay-off will not be made the subject matter of a grievance. ARTICLE 13: SENIORITY 13.1 Seniority is the length of uninterrupted service of an employee with the Company since the date of the employee s last hiring by the Company. Seniority will operate on a classification basis within each department in the Company. The following are the departments and the classifications that apply to bargaining unit employees: (a) Service (Skilled Trades) which include the following classification with seniority being accumulated within the employee s own respective classification: Master Technician Hybrid Technician Toyota Pro Technician Toyota Technician Drive Clean Technician Level 5 Apprentice Level 4 Apprentice Level 3 Apprentice Level 2 Apprentice Level 1 Apprentice (b) Service (Advisors) which include the following classifications with seniority being accumulated within the employee s respective classification: Service Advisor Warranty Clerk/Service Advisor (c) Parts which include the following classifications with seniority being accumulated within the employee s respective classification: Parts Counterperson Driver

15 (d) Support Staff which include the following classifications with seniority being accumulated within the employee s respective classification: Detailer Car Cleaner Car Jockey! Lotperson In cases of lay-off and recall, employees cannot use their seniority in order to displace any other employee in any other classification other than within their own classification except as otherwise expressly indicated in this Agreement. There shall be a separate seniority list for each classification Probationary employees shall not accumulate seniority until successful completion of the probationary period. After an employee has successfully completed the probationary period, his name shall be placed on the appropriate classification seniority list and his seniority shall be based upon the length of service with the Company since the most recent date of hire Classification seniority lists of employees shall be maintained and posted in the workplace. Loss of Seniority 13.4 An employee s seniority rights once acquired shall cease to exist and the employee shall be deemed to be terminated, if an employee: (a) voluntarily quits the employ of the Company; (b) is discharged and such discharge is not reversed through the Grievance or Arbitration Procedure; (c) (d) (e) (f) fails to report for duty on the first (1st) day following the expiration of a leave of absence, vacation or suspension, unless the employee has first obtained the consent of the Company or provided an explanation that is acceptable to the Company; is laid off for a period of twelve (12) months; fails to notify the Company of an intention to return to work within two (2) days of being notified of recall by registered mail, courier, or by telephone or failure to return to work within five (5) days after being notified of recall by registered mail, courier or by telephone, unless a reasonable explanation is given, which will be considered by the Company; has been absent for two (2) consecutive days without having notified the Company, in which case the employee shall be deemed to have quit without notice, unless a reasonable explanation is given, which will be considered by the Company; or

16 (g) leaves the Company s premises during regular working hours (not including meal breaks and rest periods) without the permission of the employee s immediate supervisor. ARTICLE 14: LAY-OFF & RECALL 14.1 Whenever it becomes necessary for the Company to decrease the working force in any classification within any department, probationary employees within the classification will be the first to be laid off. If the Company determines that further lay-offs are necessary and that seniority employees within the classification are to be laid off or recalled from lay-off, the employee with the greatest seniority within the classification in the department that is affected by the lay-off will be the last to be laid off in the classification and the first recalled from lay-off in the classification, provided that all remaining employees within the classification have the skill, ability (physically and otherwise), qualifications, availability and experience to perform the work that is required by the Company (a) In the event that the least senior employee with seniority in one of the classifications referred to in Article 13.1 above is about to be permanently laid off from within his/her own classification, such employee may be permitted to displace another employee with the least seniority in another classification provided that: (i) (ii) (iii) The other classification is one that has a wage rate that is equal to or lower than the employee s own classification from which he/she is being laid off; and The Company is satisfied that the displacing employee has the requisite skills, abilities, availability, reliability, previous related experience and qualifications to immediately perform the duties of the other classification; and The Company can continue to efficiently and effectively manage its operations with the remaining employees. (b) (c) Employees who displace an employee in a lower paying classification will be paid the lower wage rate within such classification and must undergo an assessment period of ten (10) working days within the new classification that they have bumped into, during which time the Company will have the opportunity to assess the employee s job performance in the said lower or equal classification. For the purposes of this Article 14.2, a permanent lay-off is one that is expected to be for a period of three (3) consecutive working days or more unless the lay-off results from a force majeure such as fire, flood, lack of power, or any act of God, or any other reasons that are beyond the control of the Company Employees who have been laid off in accordance with the above provisions will be returned to work in the reverse order in which they were laid off within their

17 classification provided that they are ready, willing, and able to immediately perform the work that is required and in accordance with the criteria referred to in Article 14.1 above The Company will provide the Chairperson with a list of employees to be laid off or recalled. ARTICLE 15: POSTING OF JOBS 15.1 When the Company decides to fill a vacancy in the bargaining unit for a classification that is other than a skilled trade, it will post a notice of the vacancy for five (5) working days before hiring from outside the bargaining unit. The Company reserves the right to select an applicant, if any, who is the most qualified candidate for the position while taking into account factors such as the applicant s qualifications, skills, abilities (physical and otherwise), availability, reliability and previous relevant experience. Where these criteria are equal, the employee having the greater seniority will be given the posted position Employees who successfully bid into a position, will be evaluated for a period of one hundred and sixty (160) hours actually worked after starting in the new position. At any time, during the evaluation period, the employee may return or be returned by the Company to her/his former bargaining unit position and all other employees transferred or re-assigned as a result of the move will be returned to their former position(s). The vacancy may then be filled by the Company as it deems appropriate. ARTICLE 16: LEAVE OF ABSENCE 16.1 The Company shall have the discretion to grant a leave of absence without pay for legitimate reasons, provided only, that the Company receives at least three (3) weeks advance notice in writing (unless in the case of an emergency which does not make it reasonably possible to provide such notice) and provided that such leave may be arranged without undue inconvenience and disruption to the normal and efficient operations and services provided by the Company and such discretion shall not be unreasonably exercised. Applicants, when applying, must indicate the reason for the leave of absence, the date of departure and specify the date of return. The Company will reply to the request in writing An employee who is on a Company authorized leave of absence will accrue seniority during the period of the leave Maternity and Parental Leave will be provided in accordance with the Ontario Employment Standards Act The Company will grant a leave of absence to an employee who serves as a juror in any court. The Company will pay such employee the difference between his/her regular earnings and the payment received for jury services (including jury selection) for scheduled hours of work lost due to such attendance. This will be effected by the employee signing over her jury fees to the Company and the Company will continue the employee s regular wage payments. The employee shall notify the Company

18 immediately after selection for jury duty and of the dates he/she is to serve on jury duty and will present proof of service requiring the employee s attendance. The employee will come to work during those regularly scheduled hours that he/she is not required to attend at court, where possible and reasonable to do so When an employee is required by subpoena to attend court as a witness in a court proceeding in which the Crown is a party in connection with a case arising out of the employee s duties with the Company, the employee shall not lose regular pay for scheduled hours lost because of such attendance provided that the employee notifies the Company immediately after receiving the subpoena, that he/she will be required to attend at court, and provided that the employee signs over to the Company any compensation that he/she received for being in attendance. The employee will present proof of service requiring the employee s attendance to the Company. The employee will come to work during those regularly scheduled hours that he is not required to attend at court where possible and reasonable to do so (a) (i) Upon the death of a seniority employee s spouse, or child, such employee will be granted a leave of absence of five (5) days without loss of pay in order to attend or make arrangements for the funeral, provided that the employee has completed probation. (ii) In the event of the death of a seniority employee s parent, such employee will be granted a leave of four (4) days without loss of pay in order to attend or make arrangements for the funeral provided that the employee has completed probation. (iii) Upon the death of seniority employee s brother, sister, father-in-law, motherin-law, an employee shall be leave of absence of three (3) days without loss of pay in order to attend or make arrangements for the funeral, provided that the employee has completed probation. (b) (c) (d) (e) The days granted shall be between the first day following the day of death (or receipt of notification of the death) and the day after the date of the funeral. It is understood that bereavement leave pay shall be paid only in respect of days during which the employee was otherwise scheduled to work but did not work because of the death of the immediate family member as indicated above. An employee will not be eligible to receive payment under the terms of the bereavement leave for any period in respect of which he is receiving holiday pay. In order to qualify for paid bereavement leave, employees may be required to supply proof of death by way of doctor s certificate or newspaper clipping. In the event of the death of the seniority employee s grandchild or grandparent, pay for the bereavement leave specified in this Article above shall be limited to one (1) day only, if the employee attends the funeral.

19 -16- ARTICLE 17: HOLIDAYS 17.1 Probationary employees will only be eligible to receive the statutory holidays with pay as set out and in accordance with the Employment Standards Act Employees who have completed probation will be eligible to receive the following designated holidays provided that they have worked their last scheduled day before and the last scheduled day following the holiday: New Years Family Day Good Friday Victoria Day Canada Day Boxing Day August Civic Holiday Labour Day Thanksgiving Day Christmas Day Seniority employees will receive their regular wages for the designated holiday based on their prescribed regular straight time hourly rate of pay During the term of this Agreement, Family Day and the August Civic Holiday will be paid holidays for seniority employees. During the term of this Agreement, there will be ten (10) holidays for seniority employees. ARTICLE 18: VACATIONS 18.1 Employees will be entitled to paid vacations based on their accumulated and continuous years of service as of the date of their anniversary date of employment with the Company and the vacation pay will be as set out herein. V 18.2 Earned vacation pay will be paid out twice a year (on each of the closest pay periods immediately following July 31st and immediately following January 31st) Employees who have completed one (1) year of service but less than five (5) years of service will receive two (2) weeks vacation and 4% of gross earnings Employees who have completed five (5) years of service but less than ten (10) years of service will receive three (3) weeks vacation and 6% of gross earnings.

20 Employees who have completed ten (10) years or more of service but less than twenty (20) years of service will receive four (4) weeks and 8% of gross earnings. Effective the second year of this Agreement, employees who have completed ten (10) years or more of service but less than seventeen (17) years of service will receive four (4) weeks of vacation and 8% of gross earnings Employees who have completed twenty (20) years of service or more will receive five (5) weeks and 10% of gross earnings. Effective the second year of this Agreement, employees who have completed seventeen (17) years of service or more will receive five (5) weeks of vacation and 10% of gross earnings It is understood that gross earnings for the purposes of calculating vacation pay, does not include vacation pay that is paid in respect of a previous vacation year or part of a vacation year Employees with earned vacation entitlement of four (4) or more weeks may submit a request in writing to the Company to carry over up to a maximum of two (2) weeks earned vacation entitlement into the following year. Employees with earned vacation entitlement of three (3) weeks may submit a request in writing to the Company to carry up to a maximum of one (1) weeks earned vacation into the following year. The Employer will determine whether such requests can be granted while having due regard for the Employer s operations. ARTICLE 19: BULLETIN BOARD 19.1 The Company agrees that notices concerning Union activities may be posted on a bulletin board provided by the Company. All Union notices must be signed by proper officials of the Local Union and submitted to the Company for approval before being posted. No change shall be made in any such notice either by the Company or by the Union after it has received approval by the Company. ARTICLE 20: HOURS OF WORK 20.1 The following is intended to define the normal hours of work for employees, but shall not be interpreted as a guarantee of normal hours of work per day or per week, or of normal days of work per week The work week will be up to eighty-eight (88) hours hi-weekly, exclusive of meal periods It is understood that the normal weekly hours is referred to for the purposes of computing overtime only It is agreed and understood that actual starting and quitting times may be established and adjusted by the Company from time to time in order to address the business objectives of the Company.

21 ARTICLE 21: OVERTIME 21.1 An employee who is required by the Company to work in excess of eighty-eight (88) hours in a two (2) week period will be paid at the rate of time and one-half of the employee s regular straight time hourly rate of pay for all hours worked in excess of eighty-eight (88) hours An employee who is engaged in working on ajob at the end of his shift or period of duty will complete the said job if possible to do so within a period of one hour following the normal end of his shift or work period provided the job involves a vehicle which a customer requires before the commencement of the employee s next shift or work period. It is understood that this time at regular rates will be limited to up to three hours per day There shall be no pyramiding under the terms of this Agreement. Without limitation, overtime and premium rates of pay will not be pyramided All overtime assignments must be authorized by the Company in advance of working overtime hours. ARTICLE 22: HEALTH AND SAFETY 22.1 The Company and the Union agree to abide by the provisions of the Ontario Occupational Health and Safety Act (as amended from time to time) during the term of this Agreement The parties hereby agree to work towards maintaining a safe and healthy workplace with a view to preventing injuries and illness, and to reducing the likelihood of workplace accidents and health hazards The Company, the Union, and the employees shall comply in every respect with all applicable health and safety legislation and regulations The parties agree to maintain a Joint Occupational Health and Safety Committee as required under the Ontario Occupational Health and Safety Act Employees who have completed probation and who are on the seniority list as of December 1st in each year commencing with the first year of this Agreement, will be reimbursed up to an amount of one hundred and thirty dollars ($130.OO per year towards the cost of purchasing six (6) inch or eight (8) inch green patch C.S.A. approved safety boots if the employee is required to wear safety boots and by the Employer. This payment toward the cost of the boots will be added to the employee s regular cheque upon receipt of proper proof of purchase from the employee. Employees who are required to wear safety boots must wear such boots at all times while in the workplace Seniority employees who are on the seniority list as of December 31st in each year of this Agreement and who are required to wear safety boots as set out above, will also be provided with an annual payment of one hundred dollars ($100.00) per year towards the cost of purchasing protective work equipment that is required by them in order to safely

22 perform their duties and responsibilities. The employee will provide proof of purchase of such protective work equipment to the Employer as a condition of receiving the payment. ARTICLE 23: FAULTY WORKMANSHIP OR EMPLOYEE NEGLIGENCE 23.1 A Department Manager or his designate will determine if work on a vehicle needs to be re-done or otherwise completed due to faulty workmanship or employee negligence. In such cases, the employee who did the work will be required to re-do the work without additional compensation from the Company. If the employee who worked on the vehicle is not available to re-do the work or, if the customer requests that another employee do the work, another employee will be directed by the Company to do the work involved and the costs associated with having the work re-done will be deducted from the wages of the employee who first did the work. It is understood that on mechanical work, there is a ninety (90) day calendar day or 7,000 kilometre (whichever comes first) warranty Where charges are being made and deducted from an employee s wages under this Article, the employee will be so advised before any deduction is made In the course of making decisions pursuant to this Article, the Department Manager may not act in an arbitrary or discriminatory manner Employees will not be charged for defective parts or, for labour costs that directly result from the installation of defective parts. ARTICLE 24: MEDICAL REPORTS 24.1 The Company will have the right to require the production of a physician s medical report from an employee who is ill or injured, or from an employee who has been ill or injured, or from an employee who wishes to return to work following any illness or injury. The report will confirm that the employee has been ill or injured, and that the employee is or has been treated by the physician writing the report. The report will include the physician s opinion as to when or whether the employee will be capable of safely resuming his normal duties and whether the employee will be capable of regularly attending at work in the future. The Company will only reimburse an employee for the cost of the report that is referred to in this Article 24.1 provided that the employee provides the Company with a valid receipt confirming payment to the physician It is understood that the Company will also require the production of medical reports from employees in cases in which the Company has reason to doubt that an employee has been absent from work as a result of an illness or injury as claimed by an employee. ARTICLE 25: GENERAL 25.1 It is assumed by the parties hereto that each provision of this Agreement is in conformity with all applicable laws of the Dominion of Canada and the Province of Ontario. Should it later be determined that it would be a violation of any legally effective Dominion or Provincial Order or Statute to comply with any provisions of this Agreement, the parties hereto agree to renegotiate such provision or provisions of this Agreement for the purpose of making them conform to such Dominion or Provincial Order or Statute, and

23 the other provisions of this Agreement shall not be affected thereby and the remainder of this Agreement shall remain in full force and effect Where the masculine or feminine pronoun is used in this Agreement, it shall mean and include the opposite pronoun where the context so appears. Where the singular is used it may also be deemed to mean the plural within the appropriate context. Reporting Allowance 25.3 An employee who regularly works more than three (3) hours in a day and reports for work as scheduled who has not been previously notified not to report for work shall be provided with three (3) hours work at her/his regular rate of pay or three (3) hours of pay in lieu of work, if no work is available. The three (3) hour minimum will not apply where the Company is unable to provide work for the employee because of fire, lightening, power failure, storms or any other causes which are beyond the control of the Company and which results in, or prevents the Company from providing a minimum of three (3) hours of work. Injury at Work 25.4 An employee who is injured at work will be paid his regular hourly rate for the time lost while having the injury attended to, if he is able to return to work on the same shift. If his injury is of such a nature that he cannot return to work on the same shift, he will be paid his regular hourly rate for the remainder of his shift. The employee s doctor must certify that the employee could not return to work, as a condition of payment. The Company will make transportation available to an employee who is injured and must be taken to hospital, clinic or physician Payment of wages will be made on a bi-weekly basis by noon on Friday. The Company will maintain the current practice for payment of wages of the Service Advisors. Corrections of wage errors will be made on the following business day Paid Education Leave (a) The Company agrees to contribute into a special fund, an amount of two cents (0.020) per regular hour worked by each bargaining unit employee for the purpose of providing paid education leave to employees of the Company. Such paid education leave will be for the purpose of upgrading the employee s skills in all aspects of trade union functions. Such monies will be paid on a quarterly basis into a trust fund that is established by the National Union, UNIFOR and sent by the Company to the following address: UNIFOR Paid Education Leave Program 205 Placer Court Toronto, Ontario M2H 3H9 (b) Members of the bargaining unit may be selected by the Union to attend such courses. In such circumstances, the Union will submit a written request to the

24 day Tuition Fees Company for an unpaid leave of absence in respect of an employee who is selected to attend such a course, as far in advance of the requested leave as possible. The Company will not unreasonably withhold its approval of such a request while having due regard for its operations, and with the understanding that requests for unpaid education leaves of absence will be for no more than ten (10) days of class time in total distributed intermittently for 2015, and no more than twenty (20) days of class time distributed intermittently for Employees who are on such an unpaid leave of absence will continue to accrue seniority and benefits during such leave. The Company will pay for all training that it requires its employees to take as indicated by Toyota Canada to the Company or as required by any provincial or federal ministry except with respect to any costs associated with a Technician s license the cost of which must be borne by the Technician. ARTICLE 26: DURATION 26.1 This Agreement shall be in effect during the period commencing with the date of ratification and ending on March 3 1st, Notice that amendments are required may only be given within the period of not more than ninety (90) days prior to the expiration date of this Agreement This Agreement may be amended by mutual consent of the Parties in writing This Agreement will become effective as of the date of its execution by the Parties Where notice to amend this Agreement is given, the provisions of this Agreement shall continue in force until a new Agreement is signed. IN WITNESS WHEREOF the parties have signed this Agreement this of

25 - 22 Per: NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (UNIFOR CANADA) Name: Title: Per: ONTARIO LIMITED 0/A DOWNTOWN TOYOTA Name: Title: LETTER OF UNDERSTANDING BETWEEN: NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (UNIFOR-CANADA) (hereinafter called the Union ) - and ONTARIO LIMITED 0/A DOWNTOWN TOYOTA (hereinafter called the Company )

26 day, RE: NEW EMPLOYEE ORIENTATION The Company will acquaint newly hired employees with the fact that a collective agreement is in effect and with the articles dealing with the deduction of Union Dues and remittances. A new employee will be advised of the name of his union representative and will be introduced to such representative. RE: EMPLOYEE PARKING During the term of the Collective Agreement, the Company will continue to provide parking to bargaining unit employees while they are attending at work to perform their duties, at no cost to the employees. FAULTY WORKMANSHIP OR EMPLOYEE NEGLIGENCE (AS REFERRED TO IN ARTICLE 23) If in the course of administering Article 23 of the Collective Agreement, a Department Manager determines that work on a vehicle needs to be re-done or otherwise completed due to an employee s faulty workmanship or employee negligence and the employee who initially did the work is not available to re-do the work, or the customer requests that another employee re-do the work, a third person appointed by the Company will confirm the faulty workmanship or employee negligence and the time that was required by another employee to re-do the work properly or repair the fault as the case may be. It is understood that the employee at fault for the faulty workmanship or negligence will incur a deduction from his/her wages and the employee re-doing, correcting or properly completing the required work on the vehicle, will be paid for the time spent in doing so. DATED at Toronto this of FOR THE UNION FOR THE COMPANY

27 day, LETTER OF UNDERSTANDING BETWEEN: NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (UNIFOR-CANADA) (hereinafter called the Union ) - and ONTARIO LIMITED 0/A DOWNTOWN TOYOTA (hereinafter called the Company ) RE: ARTICLE CONSTITUTION OF THE BARGAINING UNIT The parties hereby acknowledge and agree that Accounts Payable Clerk, Accounts Receivable Clerk, Administrative Assistant, Customer Retention Clerk, and Warranty Clerk are all positions that are excluded from the bargaining unit. It also undemtood that Tony Chow, John Abraham, and Sherry Machula are all Service Adviom who are included in the bargaining unit. i DATED at Toronto this of FOR THE UNION FOR THE COMPANY

28 LETTER OF UNDERSTANDING BETWEEN: NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (UNIFOR-CANADA) (hereinafter called the Union ) - and ONTARIO LIMITED 0/A DOWNTOWN TOYOTA (hereinafter called the Company ) RE: SERVICE ADVISORS COMPENSATION (A) The parties acknowledge and agree that the Company will implement an increase in the Service Advisor s commissions structure from the current 5% to 5.5% effective the first full calendar month following the date of ratification. In addition, each Service Advisor will be compensated for their individual customer pay and warranty gross profit. The $ dollar spiff is effective at $ per repair order instead of $ per repair order, effective the first full calendar month following the date of ratification. It is understood that the CSI bonus is awarded individually for a one (1) month score that is at or above zone for the current month. (B) Service Advisors will also continue to receive the current $1.00 for each maintenance service bonus. (C) The parties acknowledge that the Employer has paid a nitrogen bonus which may be discontinued at any time during the term of the Collective Agreement in the Employer s discretion. (D) The Employer will pay an employee his/her regular base rate of pay for the time that is spent in a meeting at the straight time hourly rate of pay. Time spent in the meeting is considered to be time worked for the purposes of determining entitlement to overtime. (E) Uniforms - Company will reimburse seniority employees who are Service Advisors and who have completed probation for the cost of uniformed shirts for Service Advisors as required by the Company. (F) Service Advisors are not permitted to discount any customers invoice for services and/or parts unless authorized by the Employer. It is understood however that the Employer may authorize Service Advisors to exercise a limited discretion to apply a discount to a customer invoice from time to time in appropriate circumstances that properly warrant the application of such a limited discount.

29 day, (F) Service Advisors Bonus The Employer confirms that effective the calendar month September 2008, the current $ bonus for service advisors will be based upon $ per labour sales per work order on average over the calendar month. (G) Any Service Advisor who was earning less than $30, per annum on an annualized basis as a Base Salary as at the date of ratification, will have their Base Salary adjusted to an annualized Base Salary of $30, per year effective July 1st, Such employees will not be eligible for the Across the Board Wage Increase ( the ACB ) for the first year of the term of this Collective Agreement as set out herein. The one Service Advisor, Tony Chow, will maintain his current Base Salary and will be green circled. As such, Tony Chow will receive the ACB increases that are set out herein which amounts will be in addition to but will not be folded into or included in Tony Chow s Base Salary for the first two (2) years of the Term of this Agreement. The ACB increase that is received by Tony Chow in the third year of the Term of this Agreement will be folded into Tony Chow s Base Salary at that time. (H) The parties agree to adjust Antonio Nacado s (employed in Parts) hourly wage rate to $16.00 per hour effective the first full pay period immediately following the date of ratification of this collective agreement. DATED at Toronto this of FOR THE UNION FOR THE COMPANY

30 , LETTER OF UNDERSTANDING BETWEEN: NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (UNIFOR-CANADA) (hereinafter called the Union ) - and ONTARIO LIMITED 0/A DOWNTOWN TOYOTA (hereinafter called the Company ) RE: ASSIGN WORK TO APPRENTICES It is understood and agreed that the Company as part of its management rights, has the ability to assign work to Apprentices. The Employer will include Apprentices in the normal distribution of work rotation that is used in the Shop and work will be assigned to Apprentices based upon the Employer s assessment of the qualifications, ability and skills of the Apprentice to perform the work that is required by the Employer. The Employer will maintain the current practice with respect to the assignment of work to first and second year apprentices. DATED at Toronto this day of FOR THE UNION FOR THE COMPANY

31 , 28 day B E T W E E N: LETTER OF UNDERSTANDING NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (UNIFOR-CANADA) (hereinafter called the Union ) - and ONTARIO LIMITED 0/A DOWNTOWN TOYOTA (hereinafter called the Company ) RE: NON-HYBRID TECHNICIANS The parties acknowledge and agree that non-hybrid technicians can be assigned non-hybrid related technical work assignments by the Employer which involve such technicians working on hybrid vehicles without such work assignment triggering any change in the technician s rate of pay or, any violation of the collective agreement. DATED at Toronto this of FOR THE UNION FOR THE COMPANY

32 day, 29 B E T W E E N: LETTER OF UNDERSTANDING NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (UNIFOR-CANADA) (hereinafter called the Union ) - and ONTARIO LIMITED 0/A DOWNTOWN TOYOTA (hereinafter called the Company ) RE: ACCREDITED QUALIFICATION COURSE When an employee completes an accredited qualification course such as in the case of an apprentice becoming a licensed mechanic, the employee will receive the licensed mechanic s rate of pay that is then in effect, effective the day following the date upon which the apprentice actually delivered proof of his/her successful qualification to the Employer. DATED at Toronto this of FOR THE UNION FOR THE COMPANY

33 day, B E T W E E N: LETTER OF UNDERSTANDING NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (UNIFOR-CANADA) (hereinafter called the Union ) - and ONTARIO LIMITED 0/A DOWNTOWN TOYOTA (hereinafter called the Company ) RE: TRAINING In the event that the Company determines that it requires mechanics within a classification to attend a course for the purpose of upgrading their qualifications as required by the Company, the Company will consider the mechanic s qualifications, completed prerequisites, ability to successfully complete the course within the prescribed timeframes and classification seniority of the employees within such classification. DATED at Toronto this of FOR THE UNION FOR THE COMPANY

34 31 SCHEDULE A WAGES AND GROUP HEALTH AND WELFARE BENEFITS (a) Effective the first year of this Collective Agreement which is in respect of the period February 1, 2015 to January 31, 2016, all current employee s wages will be increased_across the board (ACB) by 2% unless otherwise indicated in this Agreement (such as for example, Service Advisors who receive a classification adjustment to their Base Salary as indicated in this Agreement). (b) Effective the second year of this Collective Agreement, February 1, 2016, all employees will receive an across the board increase of 2% to the employee s wages that were in effect on January 31, 2016, unless otherwise indicated in this Agreement. (c) Effective the third year of this Collective Agreement, February 1, 2017, all employees will receive an across the board increase of 1.5% to the employee s wages that were in effect on January 31, 2017 unless otherwise indicated in this Agreement. (d) (e) All seniority employees who are employed on the date of ratification of this Agreement will receive a lump sum payment of two hundred and fifty dollars ($250.00) less statutory deductions required by law which amount will be paid in the first full pay period immediately following ratification. All seniority employees who are employed on the date of ratification and who continue to be employed on November 30, 2015, will receive an additional lump sum payment of two hundred and fifty dollars ($250.00) less statutory deductions which will be paid in the first full pay period immediately following November 30, Car Cleaner Classification Daniel Chalk is an employee who is employed in the Car Cleaner Classification. Effective the first full pay period following the date of ratification, Daniel Chalk will receive a classification adjustment so that his effective base rate of pay will become $13.00 per hour. Daniel Chalk will not receive any further wage increase or any other adjustment other than the classification niustment that is referred to herein. The parties hereby acknowledge and agree that an employee whose name is fred is employed within the classification of Car Cleaner who receives a current rate of pay that will be red circled. fred will receive the across the board increase referred to above together with other employees in the bargaining unit. The parties acknowledge and agree that Peter Ceriic is a detailer and is currently earning $16.00 per hour after the Employer increased his wage rate on April 4th, 2015.

35 -32- (e) Wane rate for Probationary Employees It is understood that all newly hired employees will undergo the probationary period that is set out in the collective agreement and that such employees will be paid an amount of seventy cents (700) per hour less than the prescribed rate of pay for the classification that they were hired into while the employee is on probation. At any time during the probationary period, the Employer will have the discretion to pay a new employee a rate that is greater than the prescribed probationary rate of pay, up to and including the prescribed post probationary rate for the classification into which the employee was hired, if the Employer determines that the employee s previous work experience or training warrants such a payment. (f) Wages for Apprentices Effective the first full calendar month following the date of ratification of this Collective Agreement, the Company will pay apprentices a wage rate that is as follows for the term of the Collective Agreement: First year Apprentices will receive 55% of the Toyota Technician hourly rate of pay. Second year Apprentices will receive 65% of the Toyota Technician hourly rate of pay. Third year Apprentices will receive 75% of the Toyota Technician hourly rate of pay. Fourth year Apprentices will receive 85% of the Toyota Technician hourly rate of pay. (g) Flat Rate System It is understood that all Technicians and Apprentices who are at or above the level of Apprentice 3 are on the Flat Rate system, and other employees who are currently hourly rated employees will continue to be hourly rates employees until they become eligible to become flat rated employees. (h) Performance Bonus for Flat Rated Technicians and Flat Rated Apprentices Bonus The Company and the Union confirm and agree that the Company deleted the previous Annual Bonus System for Mechanics as previously discussed during negotiations and that the Company has increased the bi-weekly bonus from fifty cents (500) per hour to seventy-five cents (750) per hour if one hundred and ten (110) hours is achieved by mechanics in a full pay period. Effective July 1, 2015, if Mechanics achieve 120 hours in a pay period, they shall receive $1.00 per hour instead of the 75 cents per hour for the hours that such Mechanic achieved between 110 hours and 120 hours. For greater clarity, and by way of example, if the Mechanic achieves 119 hours or less, he will receive the 75 cents per hour and for the

36 hours achieved in excess of 119 hours, such mechanics will receive $1.00 per hour for those hours instead of the 75 cents per hour. GROUP HEALTH AND WELFARE BENEFITS The following benefits will be provided to employees who have successfully completed probation and who continue to be actively working for the Company on the following terms: A. Life Insurance All employees who are currently employed and who have ten (10) years or more of service or who may achieve ten (10) years of service during the term of their employment with the Company will have life insurance coverage of $100,000. All other employees of the Company will be eligible to receive life insurance coverage based on one times the employee s annual earnings. Life Insurance Premiums will be paid for by the Company. B. Vision Care Following the successful completion of an employee s probation, employees will be eligible to participate in a Vision Care plan pursuant to which an employee and an employee s immediate family member will be reimbursed for 100% of the cost of prescription glasses up to a maximum of Two Hundred and Forty Fifteen Do1lar ($240.00) every twenty-four (24) months, effective the first full month immediately following the ratification of this Agreement. The Employee will be required to produce receipts which confirm that payment has been made for such prescription glasses. C. Annual Eye Examination for Employees The Company will reimburse an employee of the Company who has completed probation for the cost of an annual eye examination up to an amount of Seventy-Five Dollars ($75.00) per year upon presentation of proof of payment. D. Prescription Drugs (i) For the period commencing with the date of ratification of this Collective Agreement, the Company will continue to pay for the premiums of a prescription drug benefit plan which provides individual coverage to the employee only with maximum annual coverage of Three Thousand Five Hundred Dollars ($3,500.00) per year. The drug benefit plan will have a Five Dollar ($5.00) per prescription deductible paid by the employee with a dispensing fee cap of Nine Dollars ($9.00). (ii) The Company will pay for the premiums of the above-referenced prescription drug benefit plan on a shared premium contribution basis between the employee and the Company as follows and provided that the employee pays his/her share of the cost of the premium: 1. After successful completion of the probation period, the cost of the prescription drug benefit plan insurance premiums for prescription drug benefits will be shared equally between the employee and the Company on a 50%/50% basis.

37 After three (3) years but less than six (6) years of continuous service, the Company will pay 75% of the insurance premium for prescription drug benefits, and the employee will pay 25% of the insurance premium. 3. After six (6) years of continuous service, the Company will pay 100% of the insurance premium for prescription drug benefits. (iii) Family coverage for prescription drug benefits may only be provided (if required by an employee) on a shared premium cost contribution basis between the employee and the Company as follows and provided that the employee pays his/her share of the difference between single and family coverage as set out as follows: 4. After successful completion of the probation period, the cost of Family Coverage Insurance Premiums for prescription drug benefits will be shared equally between the employee and the Company on a 50%150% basis. 5. After three (3) years but less than six (6) years of continuous service, the Company will pay 75% of the insurance premium for family coverage of prescription drugs and the employee will pay 25% of the insurance premium. 6. After six (6) years of continuous service, the Company will pay 100% of the insurance premium for family coverage of prescription drugs. E. Dental Plan (i) For the period conmencing with the date of Ratification of this Collective Agreement, The Company will continue to pay the cost of premiums for a Dental Plan for individual employees who have successfully completed probation. (ii) The Company will pay for the premiums of the above referenced Dental Benefit Plan on a shared premium contribution basis between the employee and the Company as follows and provided that the employee pays his/her share of the cost of the premium: 1 After successful completion of the probation period, the cost of the Dental Benefit Plan insurance premiums will be shared equally between the employee and the Company on a 50%/50% basis. 2. After three (3) years but less than six (6) years of continuous service, the Company will pay 75% of the dental insurance premium referred to in subparagraph (1) above, and the employee will pay 25% of the dental insurance premium. 3. After six (6) years of continuous service, the Company will pay 100% of the dental insurance premium referred to in subparagraph (1) above. (iii) Coverage under the dental plan is based on co-insurance of 90% of basic restorative based on the the ODA fee schedule with a two year lag, and 50% of major restorative and 50% of orthodontics based on the ODA fee schedule with a two year lag. The coverage will continue to have a two (2) year lag of the ODA fee schedule (ie for 2015, 2012 for 2014, etc.) The Benefit Period Maximum (ie. for a calendar twelve (12) month period) for basic restorative is

38 unlimited and the Benefit Period Maximum for Major restorative is Five Hundred Dollars ($500.00) per calendar year, and the orthodontics coverage has a lifetime maximum as set out below. (iv) The Dental Plan will provide a One Thousand Five Hundred Dollar ($1,500.00) lifetime orthodontic coverage maximum for an employee s dependent children only if the employee buys or has family coverage as the case may be and subject to the terms of this Agreement. Orthodontic coverage for dependent children terminates on the dependent child s 20th birthday. (v) The Dental Plan that is arranged by the Company will only provide bitewing x-rays every two years for persons over the age of 18 and no fluoride treatment will be provided for persons who are over the age of 18. (vi) Family coverage for the Company s Dental Plan, may be extended for an employee s immediate family members (if required by an employee) on a shared premium cost contribution basis between the employee and the Company, provided that the employee pays the difference in premium between single and family coverage on the same basis as set out above in Section D for the prescription drug benefit, when an employee requires family coverage for immediate family members. F. Lon2 Term Disability The Company will maintain the current practice with respect to the Long Term Disability Benefit. G. General The Company will not be responsible for contribution of its share of premiums or for any payment for any of the benefits referred to above in the event that an employee is otherwise covered for any such benefit. The Company will have the right to select the insurance carrier of its choice in respect of any of the benefits provided herein provided that the current benefits are not reduced as a result of any selection or change of insurance carrier that is made. It shall be the responsibility of the employee to resolve any disputes concerning payment of benefits directly with the insurer. Any coverage pursuant to any of the benefits provided herein will be subject to the terms and conditions of the insurance carrier s policy or policies as the case may be or the carrier s contract with the Company. The amount of any employee s contribution towards the cost of premiums as set out in this Agreement will be deducted from the employee s paycheque. H. Sick Leave It is understood that three (3) sick leave credits will be provided to an employee who has completed probation and who becomes legitimately sick or injured and cannot attend at work as a result. The Company reserves its right to require proof of illness or injury from the employee s treating physician.

39 36 SCHEDULE B SUMMARY OF SHOP RATES FOR CURRENT EMPLOYEES OF THE EMPLOYER FOR PERIOD FEBRUARY 1,2015 TO JANUARY 31, 2015 Group 2 Technicians (Hybrid Technicians) Group 3 Technicians Binh Chau Willie Tang Wayne Moncrieffe Bassir Alexkozai Bill Georgakis Anand Singh Andy Thai Eddy Cheung Maurice Ranchigoda Group 1- (Master Technician) Peter Lee Current Group 1 Technician (who is also a Master Technician) Year 1 Year 2 $26.70 $27.00 Current Group 2 Technicians (who are also Hybrid Technicians) Year 1 Year 2 $26.20 $26.50 Current Group 3 Technicians Year 1 Year 2 $25.70 $26.00

40 Note 1: It is understood that the Employer has the sole discretion to determine whether or not any of its employees should be required to attend and complete any courses so as to upgrade their qualifications, as required by the Dealership from time to time (such as by way of example from Group 3 Technician to Hybrid Technician or, from Hybrid Technician to Master Technician etc.). It is also understood that the Employer will have the sole discretion to select which of its employees in any classification, (if any), will be required to successfully complete any course(s) that the Employer requires in order for such employee to upgrade his qualifications.