COLLECTIVE AGREEMENT. The JOHN FORSYTH SHIRT COMPANY LIMITED

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1 COLLECTIVE AGREEMENT Between The JOHN FORSYTH SHIRT COMPANY LIMITED & UNITE HERE ONTARIO COUNCIL LOCAL

2 AGREEMENT ENTERED INTO AS OF THE IST DAY OF Between: THE JOHN FORSYTH SHIRT COMPANY LTD. Hereinafter referred to as the Company AND UNITE HERE ONTARIO COUNCIL LOCAL 263 Hereinafter referred to as the Union 2

3 TABLE OF CONTENTS Article I: 1 Purpose... Article II: 2 Recognition... Article III: 3 Union Security...5 Article IV: Discrimination and Union Activity...6 Article V: 5 Management Rights...6 Article VI: 6 No Strikes or Lockouts...8 Article VII: 7 Union Representation...8 Article VIII: 8 Grievance Procedure...10 Article IX: 9 Seniority...1 Article X: 10 Lay-offs...16 Article XI: 11 Recall...18 Article XII: 12 Postings for Vacancies...19 Article XIII: 13 Discipline...22 Article XIV: 1 Leaves of Absences, Maternity & Bereavement...22 Article XV: 15 Wages and Payments...27 Article XVI: 16 Incentive Standards...32 Article XVII: 17 Hours of Work and Overtime...36 Article XVIII: 18 Designated Holidays...37 Article XIX: 19 Vacation with Pay...39 Article XX: 20 Bulletin Boards and Notices...39 Article XXI: 21 Safety, Health and Welfare & Benefits...0 Article XXII: 22 Termination of Agreement...3 Letters of Intent: #1:Union Made Label...3 #2:Bus...3 #3:Union Made Uniforms... Job Duties...5 3

4 ARTICLE I - 1. PURPOSE 1:01 The general purpose of this agreement shall be to provide for orderly collective bargaining relations between the Company, its employees and the Union. It is the desire of the parties to co-operate in maintaining a proper relationship between the Company, its employees and the Union, and to settle differences or grievances which may arise from time to time hereunder in the manner hereinafter set out. The Union recognizes that in order to provide a proper relationship between the parties, the Company must be kept in a strong, competitive market position, which means it must manufacture its products to be competitive, cost-wise, quality-wise and service-wise, and the Union agrees to support the Company in attaining such objectives. ARTICLE II 2. RECOGNITION 2:01 The Company recognizes the Union as the sole and exclusive Bargaining Agent for all employees of the John Forsyth Shirt Company Ltd. of Cambridge, Ontario, and until December 31, 2006 for relocation of the plant within the Province of Ontario, save and except Supervisors, Chief Engineer, Office and Sales Staff, Laboratory and Formation Technicians, Industrial Engineers, Product Development personnel, Quality Control personnel, Security personnel, and Instructors, Data Entry personnel, Gerber marker maker, Sewing machine fixers and other positions performed by salaried personnel. The Company will post vacancies for the positions of Instructors and Pattern makers. Employees who apply will be considered in the Company s selection of applicant employees. However, the Company shall not be restricted thereto. Employees successfully performing the job will be subject to bumping only by employees who have previously satisfactorily performed the job. Students employed during the school vacation period and part time employees who perform positions listed in Appendix A and B are not exempt. 2:02 The term employee or employees as the case may be, when used in this Agreement, shall mean only such persons as are included in the above-defined bargaining unit. 2:03 The term seniority employees means an employee who has completed serving their probationary period as set out in Article 9:02 of this agreement. The term probationary employee means an employee who has not completed serving the probationary period as set out in Article 9:02 of this agreement. 2:0 For the purpose of facilitating drafting of this Agreement, the masculine pronoun will be used; however, where the context permits, the feminine may be inferred.

5 ARTICLE III - 3. UNION SECURITY 3:01 The Company agrees that all present employees covered by this Agreement, including new employees still serving their probationary period, shall as a condition of employment, become and remain members of the Union in good standing. The rights and entitlements of probationary employees under this Agreement are restricted as is specifically set out herein. The parties agree that the requirements that probationary employees become members of the Union and subject to dues deduction (which was agreed to by the Company as of June 1,199) does not provide probationary employees with any greater rights under this Agreement than they enjoyed prior to that date. 5 The Company agrees to have a union steward present when terminating a probationary employee. 3:02 All employees at the time of their hiring shall become and remain members of the Union as a condition of their employment. 3:03 The Company agrees that following the employee s entry into the bargaining unit it will deduct weekly from the earnings of each employee the Union dues payable by such employee to the Union. The Company agrees to make such deductions from the first weekly pay cheque including those employees who are still serving their probationary period and once a month promptly forward a list of all employees from whom such deductions were made, together with the amount so collected. Whenever it is not possible for the Company to deduct such dues from such pay cheques because the employee s pay is insufficient for the period, the Company agrees to make the necessary deduction from the next pay immediately following and to hold said deduction until the following month s report. Such remittances and lists shall be transmitted to the Union once each month. The Company assumes full responsibility for such deductions and forwarding the amount collected promptly to the Union, and the Union assumes full responsibility for the validity and legality of the deductions made by the Company, and hereby agrees to indemnify and save the Company harmless from any loss, damage or expense arising from making such deductions or payment thereof to the Union. 3:0 The Union dues to be deducted pursuant to Article 3:03 hereof is to be fixed dollar amount uniformly levied on all bargaining unit employees and shall not be expressed in terms of X hours earnings or the like, and the Company shall not be required to make any computation of the amount of such dues. In order that the Company may have definite instructions as to what amount is to be deducted for weekly dues, it is agreed that the Union shall promptly notify the Company in writing, over the signature of its Ontario Council Director, of the amount of the deduction to be made by the Company for weekly union dues, and the Company shall have the right to continue to rely on such written notification, until it receives other written notification from the Union signed with the same formality. 3:05 The Company will, at the same time of making each remittance to the Ontario Council, specify the employees and their addresses and phone number, from whose pay such

6 deductions were made on forms supplied by the Union. 3:06 The Union agrees that it will accept present employees into membership and will accept all future employees of the Company into membership, subject to the Union s constitutional requirements. 3:07 The Union agrees to defend and hold the Company harmless against all claims, demands, expenses should any person at any time contend or claim that the Company has acted wrongfully or illegally in making such dues deductions. ARTICLE IV -. DISCRIMINATION AND UNION ACTIVITY :01 There will be no discrimination or coercion by the Company or Union against any employee because of race, creed, national origin, age, sex, union office or handicap, (as defined in the Human Rights Act of Ontario, 1981). :02 Neither the Union nor any employee shall engage in Union activities on the Company s premises except as permitted by this agreement or with prior written permission of the Company. Such permission will not unreasonably be with held. :03 The Union and the Employer believe that the Human Rights of all employees must be protected, so as to ensure that every person is treated with dignity and respect. ARTICLE V - 5. MANAGEMENT RIGHTS 5:01 The Union agrees that all rights and prerogatives which The Company had prior to the execution of this agreement and which are not restricted by the provisions of this collective agreement are retained by the Company and remain exclusively and without limitation within the rights of the Company and its Management. Without limiting the generality of the foregoing, the Company s rights shall include: a) The right to maintain order, discipline and efficiency; to consult and confer with the Union as necessary, when making and altering rules and regulations, policies and practices to be observed by its employees. To discipline and discharge any employee for just cause, subject to the right of that employee to submit a grievance. b) The right to select, hire and manage the working force of employees; to transfer, assign, promote, demote, classify, lay-off, recall, suspend employees, to plan, direct and manage plant operations; to introduce or change machine processes; to make studies of workloads and to institute changes in the workloads and job assignments; to select and retain employees for positions excluded from the bargaining unit and to transfer employees into the bargaining unit and to transfer employees into the bargaining unit, subject to the provisions of this collective agreement and the right of employees to submit grievances. 6

7 7 c) The right to determine: the location and extent of its operations and their commencement, expansion, curtailment, or discontinuance; the standards of production, the number of shifts; the methods, processes and means of performing work; job content and requirements; quality and quantity standards; the qualifications of employees; the use of improved methods, machinery and equipment; processes and place of manufacture; whether there shall be overtime work and the number of employees needed by the Company at any time and how many shall operate or work on any job, operation, machine or production line; if an employee will be paid by hour, on piece work or according to a bonus plan; number of hours worked; starting and quitting time. And generally, the right to manage the enterprise and its business without interference is solely and exclusively the right of the Company. d) In reference to subcontracting referred to in Article 5:01(c) above, the Company will attempt when practicable and in the best interests of the operation, to avoid subcontracting which could affect the continuity of the existing workforce. e) The Company agrees that it will not exercise its management rights contrary to any of the provisions of this agreement. 5:02 Management and excluded personnel referred to in Article 2:01, will not perform work done or work which can be done by employees in the bargaining unit save and except when necessary to instruct or train employees, in the case of emergency to maintain the flow of production, in the instance of the development of new products or experimental work. It should be noted that Head fixer, Cutting Room Manager and Sewing machine fixers are exempt from restrictions regarding work performed by management personnel, as referred to in the preceding paragraph. It is the intent of the Company, that wherever practical, instruction and training of employees will be done by duly assigned bargaining unit personnel. 5:03 RE: SECURITY PERSONNEL This letter is to confirm the understanding between the Company and the Union with respect to security personnel. As present, there are no such security personnel employed by the Company nor is there any discussion or intent to employ such personnel. In the future if the Company decides to fill any security positions within the Company for the Cambridge facility, the Company will have advance consultation with the Union before it decides if these positions will be staff or within the existing U.N.I.T.E. bargaining unit. This does not preclude the Company from hiring an external security company on a short term/emergency basis for a project of defined duration.

8 5:0 RE: CUTTERS Cutters will be included in the bargaining unit as of June 1, 1997 as follows: Present Cutter (Eric Glass) will use full company service for: - Vacation - Lay-off and Recall within the department - Postings within the department Present Cutter (Eric Glass) will use Bargaining Unit service as of June 1, 1997 for: - Lay-off and Recall outside the department - Postings outside of department The Company will look at making this an incentive job Eric Glass will assume to be posted into this job. Cutting Manager will be exempt from restrictions regarding work performed by management personnel in 5:02. ARTICLE VI - 6. NO STRIKES OR LOCKOUTS 6:01 The Union undertakes and agrees that while this agreement is in operation, neither the Union nor any employee shall take part in or call or encourage any strike, picketing, sit-down, slowdown, or any suspension of or stoppage of or interference with work or production which shall in any way affect the operations of the Company, and that there shall not be any sympathy strikes, and the Company agrees that it will not engage in any lockout during the term of this agreement. The Company agrees that the exercise of its management s rights will be applied in a fair and non-provocative manner to all employees. 6:02 Any employee who participates in any of the foregoing conduct shall be subject to discipline up to and including discharge. ARTICLE VII - 7. UNION REPRESENTATION 7:01 The Union shall designate and the Company will recognize stewards from each of the following departments or groupings of departments. 1 ST SHIFT 2 ND SHIFT CUTTING 1 1 SEWING 2 1 PACKAGING The above recognition of stewards shall not exceed a ratio of 1 steward per 50 Union members.

9 9 When twenty-five (25) or more people are working in the plant on overtime, one of these persons will be a steward or officer providing that person is qualified and available to perform one of the operations being worked on during that overtime period. In addition to the foregoing, the Union shall appoint a negotiating committee composed of not more than five (5) employees. No member of the bargaining unit may serve on more than two (2) Plant committees concurrently. Should the operations of any one department be seriously affected by the distribution of committee representatives, the Company and the Union will meet to discuss a more equitable representation. The Company and the Union agree that in the event that the bargaining unit employees exceed a number beyond which a steward would normally be expected to represent, both parties will meet and discuss the addition of an extra steward(s). Such request will not be unreasonably denied. No one shall be eligible to serve as department steward or committeeman unless they are an active employee of the Company and have attained seniority. For the purposes of this Agreement, the members of the above committee, together with the stewards, shall be deemed to be officials of the Union, and the parties hereto agree that the Union officials occupy a position of leadership and responsibility to see that this Agreement is faithfully carried out. The Union will inform the Company in writing of the identity of all stewards and committee members and the department or shift, which each steward represents and the Company shall not be obliged to recognize such personnel until it has been so informed. 7:02 No Union official shall leave their work to administer this agreement, without requesting and obtaining the permission of their department supervisor or designate, and such permission will not be unreasonably withheld. During the process of a grievance the Union will use the same steward(s) throughout, leading up to Stage 3. 7:03 Any committeeman or steward required to participate in a grievance, during working hours, shall first obtain permission from their department supervisor or designate and shall notify their department supervisor or designate, when leaving and returning to their job. Any such steward required under the grievance procedure to enter another department, must inform the department supervisor or designate of that department, which they enter, of the reason for their presence. The steward shall expeditiously attend to the grievance, so that no unnecessary loss of time or interference with production will result therefrom.

10 7:0 The Union recognizes and agrees that the members of the committee and stewards have regular duties to perform in connection with their employment. The Company will compensate such committeeman and stewards for time spent during their regular scheduled working hours in handling grievances of employees pursuant to the grievance procedure (but not at arbitration) at their earned average rate of pay, provided this privilege is not abused by the committeeman or stewards. Neither committeeman nor stewards will be compensated for time spent outside of their regular scheduled working hours. The Company will compensate each member of the negotiating committee for the time they lose from work while engaged in negotiations (including conciliation and mediation) for the renewal of this and all subsequent collective agreements. 7:05 In the case of progressive discipline (Article 13:01) the employee shall have the department steward or in the absence of the steward, an officer of the Union in attendance unless instructed by the member to leave. NOTE: Progressive discipline does not include any instruction given by management staff to a Union member. 7:06 The President of the Union will hold a day shift job for their term of office. If the President elect is on the off shift, the following steps will take place to change their shift: President elect will go to their same current job on the day shift. 2. The previous day shift incumbent for that operation will be allowed to exercise bumping rights as outlined in 10:01 or go to any vacancies at the time including the President elect off shift position. ARTICLE VIII - 8. GRIEVANCE PROCEDURE 8:01 The grievance procedure within Article VIII and Article XVI are among the most important matters in the successful Administration of this agreement. The Company and the Union therefore agree that the grievance procedures set forth in sub-sections 8.05, 8.12 and/or shall be utilized by the griever for the prompt disposition, decision and final settlement of a grievance arising in respect of the interpretation or alleged violation of this agreement, and the specifically designated grievance procedure shall be strictly followed. Wherever the term grievance procedure is used in this agreement, it shall be considered as including the Arbitration Procedure. 8:02 Grievance shall mean a complaint of claim concerning improper discipline or discharge, or a dispute with reference to the interpretation or alleged violation of this agreement. 8:03 All time limits referred to in the grievance procedures shall be deemed to mean working

11 days exclusive of Saturdays, Sundays and holiday shifts. 8:0 Failure to submit a written grievance in accordance with the requirements of the applicable sub-section 8:05, 8:11, or 16:08 shall be deemed a complete waiver and abandonment of the grievance by the griever. Any grievance not answered by the Company within the time limits of the respective Article VII or Article XVI shall be considered settled as submitted by the Union. Equally, any Company response to the grievance not appealed by the Union within the time limits of the respective Article VIII or Article XVI will cause the grievance to be abandoned GRIEVANCE PROCEDURE (excluding Incentive grievances) 11 VERBAL DISCUSSION The employee shall first discuss their complaint or claim directly with their immediate supervisor and if they wish, be accompanied by their steward. After such discussion takes place and the employee s complaint or claim is not settled or the immediate supervisor has not given a response, then the employee together with their steward shall put the complaint or claim in writing on a grievance form supplied by the Union. STEP #1: The employee s steward will submit the written grievance to the employee s department manager or designate. The Company shall be under no obligation to consider or process any grievance unless such grievance has been presented to the Department Manager or designate within ten (10) working days from the time the circumstances upon which the grievance is based were known or could have been known by the griever. However, if the Company does not consider or process a grievance which has been presented late, the Company shall not be stopped or precluded at any stage of the grievance procedure from taking the position that the grievance is late and not arbitrable. The Department Manager or designate will convene a meeting within three (3) working days and shall have present the griever, their steward and the immediate supervisor involved to hear the evidence and determine the facts. After the Department Manager or designate has reviewed the case, they will within three (3) working days submit their written signed response to the employee s steward. STEP #2 : If the Department Manager s or designate s response is not satisfactory to the employee, the employee s steward shall submit the grievance to the Plant Personnel Manager or designate within three (3) working days indicating by initialing the resolved areas of the grievance. The Plant Personnel Manager or their designate will convene a meeting within three (3) working days and shall have present the employee, the employee s steward, the employee s immediate supervisor or the Department Manager or their designate to enable them to hear first hand the case evidence and facts. The Plant Personnel Manager shall submit the written signed response to the employee s steward within three (3) working days. STEP #3: If the Plant Personnel Manager s or designate s response is not satisfactory to the Griever and/or steward, a Local Union Committee Member shall submit the

12 12 grievance to the Plant Manager within three (3) working days indicating by initialing the resolved areas of the grievance, whereupon the grievance shall be placed on an agenda for consideration at the next Labour/Management meeting between the Management Committee, the Local Union Committee and the Union s Business Agent. Within five (5) working days after the grievance was received, the Company shall arrange a meeting date to discuss the grievance. The Company shall have the right to have any other Company representatives present, as it may select, and either party may have the griever, any witnesses or any representatives of the Union present. The Plant Manager or their designate shall give the written signed decision on the grievance within seven (7) working days following such meeting, to the Local Union Committee. STEP #: If the Company s decision is not satisfactory, the Union may, by written notice within thirty (30) calendar days after the date the Company s decision was received, advise the Company of its intent to proceed to arbitration. In said notice, the Union shall propose its nominee to act as sole arbitrator to hear the grievance. Should the Union s nominees be unacceptable, the Company shall propose alternate names. Should these names be unacceptable to the Union, then the parties will continue to try to arrange for an acceptable nominee. If an acceptable sole nominee cannot be agreed upon or if parties take longer than thirty (30) calendar days to agree on an acceptable nominee, then either party may request the Ministry of Labour for Ontario to appoint one. The Arbitrator shall hear and determine the matter of the grievance and shall issue a decision which shall be final and binding upon the parties and upon any employee(s) affected by it. 8:06 The Arbitrator shall not be authorized to make any decision inconsistent with the provisions of this agreement, or to alter, modify or amend any part of this agreement, nor to adjudicate any matter not included in the grievance related to them. The Arbitrator may substitute such other penalty for the discharge or discipline, as the Arbitrator deems just and reasonable in all the circumstances. 8:07 Each party hereto shall bear equally the fees and charges of the Arbitrator. 8:08 The time limits and other requirements set out in the Article VIII are mandatory and not merely directory, and no matter may be submitted to arbitration which has not properly been carried through all specified previous steps of the grievance procedure within the time limits specified at each step. The provisions of this clause shall not be considered to have been waived by the parties or either of them unless they expressly provide a waiver thereof in writing signed by both parties, whereupon such waiver shall take effect. 8:09 A decision or settlement reached at any stage of the grievance procedures (Article VIII and/or Article XVI) and/or prior to the arbitration hearing shall be final and binding upon all parties hereto, including the complaining employee(s) and shall not be subject to re-opening by any party except by agreement in writing. If the grievance is settled prior to an arbitration hearing, the Company representatives and the Union representatives

13 13 who pass on the same as provided herein, shall sign the settlement as endorsed upon the written grievance, so that no question or argument may arise as to what the settlement was. 8:10 When an employee s grievance is settled by the parties or determined by an arbitrator on the basis that the employee entitled to be reimbursed for wages lost as a result of action on the part of the Company in violation of this agreement, such reimbursement shall be retroactive to the date of presentation of the grievance to the Company, however in the case of a pay grievance, it may cover the whole of the pay period in question. Such reimbursement shall be at the applicable rate(s) the employee would have earned for the hours they would have worked for the Company, if the violation had not occurred, but there shall be subtracted therefrom any monies the employee received during such period. 8:11 UNION POLICY GRIEVANCES OR COMPANY GRIEVANCES A Union policy grievance or a Company grievance may be submitted to the Company or the Union, as the case may be, in writing within ten (10) working days from the time the circumstances upon which the grievance is based were known or could have been known by the grieving party. Arrangements for a meeting between the Company and the Union shall be made within five (5) working days of the presentation of the written grievance, and the meeting shall take place within the framework of Step No. 3 of clause 8:05 above. The Company or the Union, as the case may be, shall give its written decision within three (3) working days of such meeting. If the decision is unsatisfactory to the grieving party, the grievance may be submitted to arbitration within thirty (30) calendar days of the delivery of such written decision and the arbitration sections of this agreement shall be followed. It is expressly understood that the provisions of this Clause 8:11 may not be used by the Union to institute a grievance directly affecting an employee or employees which such employee(s) could themselves institute and the provisions of clause 8:05 hereof shall not thereby be bypassed, unless the Union can show that employee s rights under the Collective Agreement and/or Law (as defined below) may have or could be violated. In those cases, the Union s policy grievance(s) will be dealt with in accordance with the Grievance and/or Arbitration procedures. NOTE: Law is defined to include, for example: * Employment Standards Act of Ontario * Labour Relations Act of Ontario * Worker s Compensation Act of Ontario * Occupational Health and Safety Act and its Regulations for Industrial establishments DISCHARGE CASES A claim by a seniority employee that they have been discharged without proper cause shall be treated as a grievance and shall commence at Step No. 3 of clause 8:05 provided a written grievance signed by the employee and their department steward or a

14 Union Committee Member is presented to the Plant Manager or designate within four () working days after the discharge. When a seniority employee is discharged and is upon the Company premises, their steward or a Committee Member will be called into the meeting at which they are discharged. The International Representative of the Union will be permitted to attend the Step No. 3 meeting between the Management Committee and the Union Committee held pursuant thereto. The discharge of a probationary employee may not be the subject of a grievance however; the Union may request an explanation of the Company s decision. The Company agrees that in cases where a probationary employee is being terminated a union representative shall be present. Only in extreme cases should any discharge take place off the Company s premises. A meeting will be held between the Company and an Executive Committee member prior to termination of any employee while off Company premises. ARTICLE IX- 9. SENIORITY 9:01 Seniority is defined for the purposes of this agreement as the length of service within the bargaining unit of an employee of the Plant, computed from the date of hiring or the date of transfer into the bargaining unit, (as covered by Clause 12:13 below) or in the case of a part time employee computed from a date to be determined and governed as follows. During the probationary period, the part time employee will be credited with hours worked to include hours paid for under Article XVIII. To determine the number of credited days such employee has, calculations will be made on the principle that each eight (8) hours worked and/or paid will equal one (1) day of credit towards days worked for the purposes of clause 9:02 below. 1 When a part time employee has sixty (60) credited days their seniority date will be calculated by back dating sixty (60) calendar days from the date of completion of the probationary period, then from the established date onwards such employee s seniority will be calculated on the same basis as a full time employee. Seniority shall apply only to the extent provided in this agreement. Service is defined for the purposes of this agreement as the length of service while in the employ of the Company from the date of the employee s last hiring. 9:02 An employee having less than sixty (60) worked days of service shall be considered a probationary employee and will have no seniority rights in regard to lay off or dismissal until they have worked for the Company for an accumulated period of sixty (60) worked days within a twelve (12) month period and shall then be placed on the appropriate seniority lists. The Union may request an explanation of the Company s decision to dismiss or layoff a probationary employee; however, such dismissal or layoff cannot be the subject of a grievance. A worked day for the purpose of this clause shall be considered a day in which the employee reported for work including overtime days. 9:03 The Company will maintain separate seniority lists in each Department and will indicate therein, those employees classed as part time.

15 9:0 The Company will maintain separate plant wide seniority lists and will indicate therein, those employees who are classed as part time. 9:06 Seniority lists, in accordance with the foregoing, shall show the date from which seniority commences and also, where different, the date of commencement of service and such seniority lists shall be revised not less than once every six (6) months and a copy of each departmental seniority list posted on the departmental bulletin board and each plant wide seniority list posted in the cafeteria. Notwithstanding the foregoing, the Company will, upon request from the Union, revise and post such seniority lists not sooner than three (3) months nor later than six (6) months after the last posting. The Company shall supply each steward with a copy of the seniority list for the department or departments in which they have jurisdiction. In addition, the Company will supply copies of above departmental and Plant lists to the Union office. Seniority lists by plant will also be posted in the plant. 9:07 Seniority rights and employment shall cease for any of the following reasons: 15 a) If an employee quits or retires. b) If any employee is discharged and the discharge is not reversed through grievance procedure. c) If an employee is absent from work without notifying the Company unless a reason satisfactory to the Company is given. d) If, after a lay-off, the employee fails to return to work within seven (7) working days after the Company s notice of recall has been sent by Registered Mail or by telephone to the last address or telephone number shown on the Company s records, or the date designated for their return, whichever last occurs. e) If the employee fails to report for work promptly after the expiration of any leave granted to them unless it is for reasons acceptable to the Company which are beyond the employee s control. f) If an employee is absent from work due to layoff for one (1) year. 9:08 An unacceptable level of unauthorized absenteeism may be subject to discipline up to and including dismissal, which may be subject to the provisions of Article VIII. 9:09 The Company agrees to accord a preferred seniority status to Lead Hand, as long as they are performing Lead Hand functions, and Departmental Stewards only during their respective terms of office, for the purpose of lay-off and recall only. Such preferred seniority shall be restricted to the department in which the employee is, at the time, regularly employed. In using preferred seniority, an employee can displace a more junior employee in the department provided they are qualified to perform the work. If such a position is not available, they can replace the most junior employee in the department provided that within a familiarization period of five (5) days worked they can perform the

16 work required in accordance with the Company s quality and production standards. The Company agrees to accord a preferred seniority status to the following Union officers: President, Vice-President, Recording Secretary, Financial Secretary, Chief Steward, and Sergeant-At-Arms. If they cannot be placed through the provisions of the previous paragraph, they can displace a more junior employee in the plant provided they are qualified to perform the work. If such a position is not available they can replace the most junior employee in the plant provided that within a familiarization period of five (5) days worked they can perform the work required in accordance with the Company s quality and production standards. 9:10 It shall be the duty of the employee to notify the Company promptly in writing of any change of address. If an employee should fail to do so, the Company will not be responsible for failure of any notice to reach such employee, and any notice sent by the Company by registered mail or telegram to the address of the employee, which appears on the Company s personnel records shall be conclusively deemed to have been received by the employee. 9:11 GENERAL PROVISIONS FOR COVERING PREVIOUS SENIORITY For the purpose of the Collective Agreement between the parties, an employee's seniority and service will be based only on an employee's length of service with the Company and an employee's service and seniority with any previous employers, including John Forsyth and the Penman's Division of T.A.G. Apparel Group Inc, shall not be taken into account for any purpose whatsoever except for the purposes enumerated below: Computation of probationary period; Lay-off(s) occurring after the date of the Collective Agreement; Recall(s) occurring after the date of the Collective Agreement; Awarding job posted vacancies; Job Assignments pursuant to Article X(Section 10:03) of the Collective Agreement; Changes of occupation pursuant to Article XII (Section 12:11) of the Collective Agreement; Transfers outside the bargaining unit pursuant to Article XII (Section 12:13) of the Collective Agreement; Transfers of employees pursuant to Article XII (Section 12:!12) of the Collective Agreement: Pregnancy Leave ARTICLE X LAY-OFFS 10:01 When it is necessary to decrease the number of employees in a department, such reduction will be made as follows: 16 a) Other than through a layoff, operators will remain on their respective operations, and after absence will return to their respective operation within the seniority structure

17 outlined in the group system. Production levels will always determine the necessary employee requirements. b) When the volume of production on an operation within a group in a department reduces to the point where a reduction of personnel is warranted, the least senior employee of the operation within the group in that department will be assigned to an opening in their group. If there is no opening in their group, the employee can use their seniority to displace the most junior employee in the group in that department on the same shift provided they are qualified. c) The displaced employee from the group will exercise their seniority to displace the lease senior employee in the department on the same shift, unless they can be assigned to an opening in the department on the same shift and provided they are qualified. The employee must test capable to do the operation (per 12:1). d) The employee displaced from the department can exercise their seniority to displace the least senior employee in the plant on the same shift, unless they can be assigned to an opening in the plant on the same shift provided they are qualified. The employee must test capable to do the operation (per 12:1). e) Where the job or shift of an employee is permanently discontinued as a result of total work elimination on the operation or shift as a result of technological change (a significant change of equipment and methods), such employee, after a conference between the Company and the Union, will be assigned by the Company either to a suitable vacancy on the same shift or to work being performed by an employee with less seniority on the same shift provided they are qualified. Such senior employee will be given an appropriate training period equal to half the normal curve and will be paid according to the Incentive Assistance Program. The employee must test capable to do the operation (as per 12:1). f) If conditions change within (3) three calendar months, creating openings in their original operation, the employee affected may return to their original operation. All transfers resulting from the foregoing provisions will be paid on the Incentive Assistance Program. The Company reserves the right to displace the operators who have exercised their seniority rights to obtain a new occupation, if they do not perform the work assigned in accordance with the Company s quality and production standards. Updated listings of employees by Groups will be posted on the bulletin board every three (3) months. g) In no event shall the Company continue the training period if the employee runs an unreasonable amount of unacceptable work or causes damage to machines or equipment. Any employee, who fails to meet quality and production standards within the above stated training period or fails to qualify, will be subject to layoff. 17

18 10:02 Notwithstanding the provisions of section hereof; when there is a lay off on each operation the employer will first ask for volunteers. The least senior employee will be laid off the first four () days per calendar year. Once the least senior employee has completed their four () days, the next senior employee will then have their four days per calendar year of lay off and continue until all employees on that operation have had equal number of days on lay off. In no case after the employee has served their four () days of lay off per calendar year in a particular operation shall a junior employee be retained on the same operation while a senior employee is on lay off. 10:03 Wherever used in this agreement, the word qualified shall mean presently possessed of the skills and aptitudes which enable the person to perform the work required in accordance with the Company s quality and production standards. An employee is considered qualified in regard to production standards if their performance is normally at 100% under normal conditions. Employees will also be considered qualified if they are in the following category: i) The employee has no active disciplinary record for any reason greater than Stage 2. Performance evaluation will be based on a 16-week interval. 10:05 The Company will give written notice of impending short term layoffs as soon as knowledge of same becomes available. Where the Company has more than one (1) week notice of a planned lay-off, the Company will give the Union at least one (1) week written notice thereof. ARTICLE XI RECALL 11:01 When the Company decides to increase the work force in a department, the most senior laid-off person from the department (whether they have exercised their seniority to transfer to another department or whether they are still on layoff) will be recalled to the department in accordance with their seniority, provided they are qualified to perform the work required in accordance with the Company s quality and production standards. An employee so recalled may at their option and upon mutual agreement between the Company and the Union, remain in the department in which they are currently employed, in which case the employee shall forfeit their right to the opening in question. One (1) month after having reached the mutual agreement, the employee shall lose their old departmental seniority and acquire seniority in the new department and be credited in such new department with their full plant seniority. 11:02 An employee on layoff who still has recall rights in accordance with the terms of this Collective Agreement, and cannot be recalled to their position from which they were laid 18

19 off, shall be offered alternative employment in another position within the plant. This provision is not intended to circumvent the provisions of section 11:01, but rather it is intended to prevent a senior employee remaining on layoff and the hiring of perspective new employees. ARTICLE XII -12. POSTINGS FOR VACANCIES 12:01 The Company will determine if it needs to fill a new job or vacancy prior to posting an available vacancy. a) The Company agrees to post notice plant wide on the plant bulletin boards for three (3) working days, permanent full-time or part-time vacancies, including new or expanded occupations which will result in an increase in the number of employees within a classification, save and except for vacancies arising from the permanent severance of a probationary employee having completed less than fifty (50) days of their probation period. b) The Company agrees to post on the bulletin boards for three (3) working days, any temporary vacancy the length of which is expected to exceed twenty (20) working days, but less than twelve (12) months. Notice of temporary vacancy will be posted on the bulletin boards. Any experience gained by a selected employee while working in the temporary assignment under this sub-section will be credited to the employee for future job application of a similar nature. c) During the period of time required for the posting and the time of making a selection and awarding a job and/or position to an employee, the Company may fill the vacancy by means of a temporary transfer for up to ten (10) working days. 12:02 In the awarding of a job posted vacancy, the following procedures will apply: a) The posted job will be awarded to the most senior applicant within the department, provided that they are qualified and have successfully performed the job previously. b) If the job is not filled through 12:02 (a) then other applicant employees within the group in that department who are qualified shall be considered. The senior of those subject to testing will be awarded the posted job/position. c) If the job is not filled through 12:02 (b) then other applicant employees within the department who are qualified shall be considered. The senior of those subject to testing will be awarded the posted job/position. d) If the job is not filled through 12:02 c) then other applicant employees within the plant who are qualified shall be considered. The senior of those subject to testing will be awarded the posted job/position. 19 e) Employees will not be stopped from the 15 day trial period on the basis of testing except where employee safety or product quality is jeopardized, e.g. heavy lifting,

20 20 colour detection, etc. 12:03 The Company will post notice on the plant bulletin boards of the names and positions of the successful applicants who have been awarded the positions for which postings have been made. 12:0 An employee successfully posting for an occupation through the posting procedure, as outlined in Article 12:01 (a) above, shall not be eligible or entitled, without the consent of the Company, to be granted any vacancy or transfer for a period of nine (9) months from the date of the implementation and the posting of their name on the bulletin board of their aforesaid selection. Any employee who after successfully posting for an occupation, is removed from that occupation by reason beyond their control, shall not be subject to the nine (9) month restriction outlined above. An employee who after successfully posting for an occupation, is removed from a posted position because of inability to do the work, will be permitted to re-post once in the above referred to nine (9) month period. In cases where the original applicant declines the awarding of the posting (has not physically started the posted job or has physically started on the posted job within 15 days proves to be unsuccessful on the job or chooses to go back to their original position as per Article 12:07, the Company agrees to assign the job by using the original posting sheet and awarding to next senior qualified person as per job posting procedure. 12:05 The job posting procedure herein provided shall apply in respect of the first vacancy, but will not apply to subsequent vacancies created by the filling of the first vacancy. 12:06 All transfers resulting from a posting application will be paid at the rate of the job. 12:07 An employee shall be returned to their old job without detriment to their seniority standing, if they express such a preference or if they run an unreasonable amount of unacceptable work or causes damage to machinery or equipment during the first fifteen (15) days worked in the new position, or on the completion of the fifteen (15) days worked in the new position, if they are unable to prove that they are capable of performing the new job. 12:08 If after the fifteen (15) days worked in the successful employee s posted position, the employee has proved they have the ability to do the job, then their transfer and all of the subsequent transfers involved will be deemed to be permanent. 12:09 If a successful applicant employee during the fifteen (15) days worked period in the posted position/job/occupation, expresses their preference to return to their old job, the skills acquired during that period or the skills acquired by an employee during a temporary transfer other than through the job posting provisions of 12:01 (a) and (b) and/or 12:0 will not be considered when making selections and awards, nor can the skills acquired be used to displace other employees during a reduction in the workforce. 12:10 Employees wishing to transfer shifts within their department on the same occupation,

21 may apply to the Personnel Manager. When a non-posted vacancy becomes available, the Personnel Manager will arrange the transfer. In the case of more than one applicant for the position, seniority will be the deciding factor. 12:11 Employees with a minimum of two (2) years seniority wishing to change their occupation may apply to the Personnel Manager. 12:12 a) An employee who transfers from one department to another voluntarily through the posting procedure, shall retain their plant seniority. b) Where an employee is transferred temporarily to another department, such transfer shall be for a period not exceeding two (2) months unless mutually agreed. The employee shall continue to accumulate seniority in their previous department. At the end of such temporary transfer, the employee shall return to their previous job, or if necessary, exercise their seniority as provided for in Article X, XI and XII. c) The seniority of an employee exercising their rights or being assigned under the provisions of sub-sections 10:01 or 10:03 will transfer to their new department immediately thereby bypassing the other seniority provisions in this Collective Agreement. 12:13 a) TRANSFER TO POSITION OUT OF THE UNION 12:1 TESTING Any employee covered by this Agreement who is transferred to a position with the Company outside of the bargaining unit shall retain their seniority as of the date of transfer for a period of one (1) year from said transfer date, but shall not accumulate seniority in the bargaining unit while so employed. b) TRANSFER TO FULL TIME POSITION WITH THE UNION A member of the Union elected or selected for union duties with UNITE HERE which necessitated their absence from employment with the Company may, upon written application by the Union, be granted a leave of absence without pay and benefits. If leave is granted, the employee will retain and accumulate seniority for a maximum period of 12 months. Where an employee changes jobs as a result of any posting, bumping, or assignment, they must be confirmed suitable to do their new job safely and effectively, (by Hiring and Development Manager or designate). The intent of this is to help ensure that employees are matched with jobs where they can be successful. Testing criteria will be predetermined for each job and made available for review by employees. 21