COLLECTIVE AGREEMENT. -Between- LESENA STEEL LTD. Scarborough, Ontario Hereinafter referred to as the ''Employer" -And the-

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1 COLLECTIVE AGREEMENT -Between- LESENA STEEL LTD. Scarborough, Ontario Hereinafter referred to as the ''Employer" -And the- INTERNATIONAL BROTHERHOOD OF BOILERMAKERS, IRON SHIP BUILDERS, BLACKSMITHS, FORGER AND HELPERS LOCAL LODGE 128 ONTARIO Hereinafter referred to as the "Union" April 12th, April 13,

2 ARTICLE 1 - RECOGNITION The Employer recognizes the Union as the sole collective bargaining agent of all hourly rated employees in its plant in the City of Scarborough save and except Foreman, Quality Control, Engineers, Office or Clerical Workers. ARTICLE 2 - MANAGEMENT RIGHTS The Union acknowledges that the Employer has, and will retain as its function, the right and power to operate and manage its business in all respects in accordance with its responsibilities and commitments. It is the Employer's right to determine the number and locations of plants, the products to be manufactured, methods of manufacturing, schedules of production, kinds and location of machines and tools to be used, process of manufacturing and assembling, the engineering and design of the product and control of material and parts to be incorporated in the products produced. It is an exclusive function of the Employer to hire, promote, demote, transfer, suspend, discipline, or discharge for just cause, employees in the bargaining unit, subject to the provisions of this Agreement. ARTICLE 3 - HOURS OF WORK Monday through Thursday work days will start at 7:30am and end at 4:30pm. Friday work day will start at 7:30 am and end at 1:30 pm. Any change in these hours will be made by mutual consent between the Union and the Employer. If a second (2nd) shift is required, any change in working hours will be at the discretion of the Employer. Employees reporting for work as usual on a regular working day, unless notified by the previous day not to report, and for whom no work at their regular job is available, shall be offered at least four ( 4) hours employment in other work at the employee's current hourly rate of wages, or at the Company's option, will be paid four ( 4) hours pay in lieu of work. This provision shall not apply if the failure to receive notice was caused by the employee's absence on the previous day or if the failure to provide work is caused by reason of strike or other work stoppage, machinery breakdown, fire, flood, power failure or other like cause. Throughout the work day, the members will be allotted a fifteen (15) minute break in the morning, a twenty-five (25) minute lunch break, and a ten (10) minute break in the afternoon. [30 minutes break is not constitute part of the work period (5 minutes break in the morning + 25 minutes lunch break)]. ARTICLE 4 - SHIFT WORK When other than one (1) shift is worked, a shift bonus of eighty-five cents (0.85 ) per hour will be paid to all employees working on the second (2nd) shift, and a bonus of eighty-five cents (0.85 ) per hour on the third (3rd) shift. 2

3 ARTICLE 5- RATES OF WAGES The following basic rates of wages will be effective: Classification Effective Effective April 12th, 2017 April 12th, 2018 Layout Man $27.67 $27.67 Fitter "A" $27.67 $27.67 Welder "A" $27.67 $27.67 Fitter "B" $25.16 $25.16 Welder "B" $23.55 $23.55 Helper "A" $21.90 $21.90 Helper "B" $20.87 $20.87 Labourer $18.28 $18.28 The Employer may designate employees who shall be termed Lead Hands and pay those employees over the highest rate of the men led as shown in the following chart: Classification Base as of 7% premium April 15, 1997 per hour$ Fitter's Lead Hand $18.23 $1.28 Welder's Lead Hand $18.23 $1.28 Helper's Lead Hand $14.24 $1.00 The Lead Hand premiums shown above will remain unchanged in future agreements unless negotiated. Section 3 Class "B" employees shall be given a chance to become "A" class whenever possible before new Class "A" employees are engaged. Section 4 New employees may be paid an hourly rate of twenty cents (0.20 ) below the classification entered into for the first sixty (60) days of employment. Section 5 The Sub-Arc Welding Operator will be paid a premium of seventy-five cents (0.75 ) per hour. Sub-Arc Welder to be paid as Class "A" as base. Section 6 There will be a premium of twenty-five cents (0.25 ) per hour paid to Welders who are qualified and perform flux core welding. 3

4 ARTICLE 6 - OVERTIME Overtime rates shall be paid for work performed after the employee accumulates a total of forty (40) hours in a one week period. Overtime shall be paid at time and one half ( 1-1/2) for the first two (2) hours after the work day, and first two (2) hours on Saturdays, with the provision that the minimum Saturday overtime shall be five (5) hours. All hours worked beyond two (2) hours on weekdays and Saturdays and all hours worked on Sundays and Holidays shall be paid at double (2x) time rates. On those occasions when overtime is required to sustain work flow and commitments to customers, workers will be selected on the basis of classification and quota of overtime hours. ARTICLE 7- VACATION WITH PAY All employees with less than one (1) year of service shall be paid vacation pa by the Employer at four percent (4%) of the employee's total earnings. Employees with one (1) year of service and over shall be entitled to two (2) weeks vacation at four percent ( 4%) of total earnings. Section 3 Employees with five (5) years of service and over shall be entitled to three (3) weeks vacation at six percent (6%) of total earnings. Section 4 Employees with ten (10) years of service and over shall be entitled to four (4) weeks vacation at eight percent (8%) of total earnings. Section 5 Employees with twenty-one (21) years of service and over shall be entitled to five (5) weeks vacation at ten percent (10%) of total earnings. Section 6 Service and vacation pay shall be computed from July 1st to June 30th of each year in which the vacation is to be taken. Vacations longer than two (2) weeks may be broken to suit the Employer's schedules. Section 7 All employees shall be required to take at lest two (2) weeks of their vacation entitlement. Section 8 Vacation pay shall be paid at the time the vacation is taken, provided that the Employee gives the Company at least two (2) weeks notice. Section 9 Any vacation pay not paid out previously shall be paid out bi-annually on the pay cheque following June 15th and November 15th. 4

5 ARTICLE 7 - LEAVE OF ABSENCE When the requirement of the service will permit, employees will be granted leave of absence, not to exceed thirty (30) days, with the privilege of renewal when approved by Management. The benefit package will be continued during this thirty (30) day period. ARTICLE 8 - RECOGNIZED HOLIDAYS The following twelve (12) Paid Holidays will be recognized by the Employer, and paid for at the employee's regular rate for the standard hourly day, prevailing at the time of the Holiday. -New Year's Day -Day before New Years Day -Good Friday -Victoria Day -Canada Day -Civic Holiday -Labour Day -Thanksgiving Day -Day before Christmas Day -Christmas Day -Boxing Day One (1) day floating holiday (to be taken between Christmas and New Year's Day). In order to qualify for Holiday Pay, the permanent employee concerned must have worked both the working day immediately before the holiday, and the first working day after the holiday, unless absent with permission of an authorized Company Representative. If unable to work the day before or the day after a holiday due to sickness, the employee must have a Doctor's certificate stating he was unable to work. ARTICLE 9 - UNION SECURITY AND CHECK-OFF The Employer agrees that all employees covered by this Agreement who are members of Lodge 128 shall maintain their membership in said Lodge in accordance with the Brotherhood's Constitution during the life of this Agreement as a condition of employment, and that all new employees must become members of Lodge 128 within sixty (60) calendar days from the start of employment and remain members during the life of this Agreement. The Employer shall deduct from the first pay period each month, Union Dues, and shall deduct Shop Assessment Dues - one half of one percent (1/2%) weekly, covering all employees coming within the scope of this Agreement, also Initiation Fees or Reinstatements covering new employees and promptly (no later than the fifteen (15th) day of the following month), remit same together with a list of names of the employees whose Union Dues, Initiation Fees or Reinstatements are so deducted, to the Secretary of the Local Union, designated by an official Representative of the Union. The Union shall notify the Employer of the amount fixed as Monthly Dues, Initiation and Reinstatement Fees. 5

6 ARTICLE 10- REPRESENTATION For the purpose of carrying out the provisions of this Agreement, the Employer shall deal only with the accredited Representatives of the Union. The Employer recognizes the right of the Union to appoint, or otherwise select a Shop Steward and Committees whose duties will be to assist the Employer and the Union in carrying out the provisions of the Agreement. All employees under this Agreement agree to co-operate and assist in every possible way the Employer to conduct a successful business, bearing in mind that both parties must give service to the public. ARTICLE 11- SENIORITY Seniority is defined as length of service with the Employer. New employees will be probationary until they have completed sixty (60) calendar days, after which their seniority will date back to the time of hiring. - Lay-offs Reduction of forces shall be by seniority within the classifi.cation affected. Am employee who is affected by lay-off shall have the choice to displace an employee of lesser seniority who in an equal or lower classification providing he has the ability to perform the work required or take the lay-off. An employee exercising his right to displace an employee of a lower classification shall maintain his previous classification's rate of pay. Section 3 - Recalls Recall of employees shall be made as required into their classification and in inverse order of the procedure outlined for lay-offs. Section 4 - Job Posting When new job openings or vacancies occur within the bargaining unit, the Company agrees to post notice of such vacancies for a period of five (5) working days. Applications will be made to the Company in writing. The choice shall be made on the skill and ability of the applicant concerned, where these are equal, seniority shall govern. If within a probationary period of sixty (60) days, unsatisfactory performance is demonstrated or the employee so chooses, he shall be returned to his previously held classification. ARTICLE 12 - HEALTH & WELFARE The Employer shall pay for all employees under this Agreement, the full premium cost of health insurance under the Boilermakers' National Benefit Plans (Canada). Any new employees must work sixty (60) days before the Employer is required to pay the said premiums. 6

7 The Employer shall provide, effective January 01, 1998, a money purchase Pension Plan with contributions by the Plan members matched by the Company. Company contributions will be a maximum of four percent (4%), as set out in the Plan text. Details of the Plan shall be made available to all employees by the Administrator. ARTICLE 13- BEREAVEMENT PAY On the death of a Father, Mother, Wife, Father-in-Law, Mother-in-Law, Brother, Sister or Child of an employee, the employee so affected shall be granted three (3) working days of leave of absence with pay. In a bereavement situation, a Death Certificate or published Obituary shall be provided upon request of the Employer. ARTICLE 14- GRIEVANCE PROCEDURE FIRST SECOND THIRD Any employee or group of employees covered by this Agreement having a grievance shall first take the matter up with his Shop Superintendent, with or without the assistance of the Shop Steward. Failing to reach a settlement within two (2) working days, the grievance shall be presented in writing to the General Manager, who will discuss the matter with the employee or group of employees involved and the Shop Steward. Failing to reach a settlement with the General Manager within two (2) working days, the Employer or Union shall be entitled to the assistance of an International Representative of the Union, if necessary failing a satisfactory settlement, the grievance may then be referred to Arbitration. No grievance will be considered where the events giving rise to it occurred or originated more than five (5) full working days before filing of the grievance. ARTICLE 15 - NO STRIKE, NO LOCKOUT During the term of this Agreement, the Employer agrees that there will be no lockout and the Union agrees that there shall be no strike, work slow-down, sit down, walk out, or other stoppage or interference with work. 7

8 ARTICLE 16- SAFETY EQUIPMENT The Employer agrees to continue the present practice of supplying safety equipment. Boots shall meet minimum industrial safety requirements, both rubber and leather. The Employer shall pay up to a maximum of two hundred dollars ($250.00) per year upon receipt of a sales slip from Mark's Work Wearhouse for CSA approved green tagged safety boots. Employees shall be limited to purchasing one (1) pair of boots at a time. ARTICLE 17 - OUTSIDE SHOP WORK An employee working away from his regular place of employment will be paid at five dollars ($5.00) per hour over his normal rate of pay, forty-five cents (0.45 ) per kilometer, living expenses and up to ten dollars ($10.00) per meal with sales slip. Any employee, upon request shall be provided with transportation. The hourly premium paid does not apply to employees who are not performing their normal work. For example, employees who are attending seminars or courses will be paid their normal hourly rates. ARTICLE 18 - WASHUP TIME Employees shall be allowed a period of five (5) minutes at the end of each shift for the purpose of cleaning and washing up. ARTICLE 19 - QUALITY ASSURANCE The Employer agrees that all Quality Assurance work carried out by the Sub-Contract Inspection, to include but not limited to X-Ray, Ultrasonic and other testing and inspection procedures, shall be done by members of the Quality Control Council. ARTICLE 20 - TOOLS in the class of Fitters, the following tools will be replaced by the Employer once per year, for broken tools only: One (1) twenty foot (20') Tape Measure One (1) Hammer Handle One (1) Combination Square One (1) Twenty-four Inch (24'') Mastercraft Level The employee shall be responsible for immediate replacement and notification to the Employer of replacement at any time not covered by the Agreement. (i.e.) if replacement is more frequent than once per year. 8

9 ARTICLE 21 - CLOTHING ALLOWANCE The Employer shall provide at no cost to the employee, coveralls (or shop coats) to be cleaned and serviced by the Employer. ARTICLE 22 - DURATION OF AGREEMENT This Agreement shall become effective on April 12th, 2017 and shall remain in full force and effective until April 12th, 2019 and year to year thereafter unless either party shall, at least thirty (30) days prior to any anniversary date thereafter, notify the other to this Agreement in writing of any proposed changes to this Agreement. ARTICLE 23 - JOB DESCRIPTION Welder "A" Welder "B" Fitter "A" Fitter "B" Helper "A" Helper "B" Labourer 6G Position Welding Ticket or 3G plus SAW Ticket lg, 2G and 3G Position Tickets Read drawings and perform fittings with no guidance Read drawings and perform fittings with some guidance Operate drill press, hydro tests, grinding without guidance Operate drill press, hydro tests, grinding with some guidance Clean up shop, grinding (no previous experience) 9

10 Signed this _17th. day of April, 2017 _. Signed on behalf of LESENA STEEL LTD. Vladtb General Manager Signed on behalf of International Brotherhood of Boilermakers, Iron Ship Builders Blacksmiths, Forgers and Helpers Local Lodge #128 Dalas Santavy Industrial Business Representative 10

11 LETTER OF UNDERSTANDING Between the Boilermakers Local128 (THE UNION) and Lesena Steel LTD (THE EMPLOYER) there will be two payments made in the amount of four hundred dollars and zero cents ($400.00). The first payment is to be made in April 2017 and the next payment will be made April2018 in the amount shown above to six members of the bargaining committee shown below. Darryl Harvey James Barton Janusz Stypka Mihajlo Sajdaka Oswaldo Castellanos Nazim Beekham Vladimir Jurukov, General Manager r~ Dalas Santavy Industrial Busin tj.//~~-/-7t-,