COLLECTIVE AGREEMENT. between. McKESSON CANADA Limited. and. THE UNITED STEELWORKERS, Local 8327

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1 COLLECTIVE AGREEMENT between McKESSON CANADA Limited and THE UNITED STEELWORKERS, Local 8327 February 1, 2010 January 31, 2013 WAREHOUSE EMPLOYEES WAREHOUSE AGREEMENT

2 TABLE OF CONTENTS ARTICLE PAGE 1 Purpose Scope and Recognition No Discrimination or Coercion Management Rights Union Security Medical Examination Safety and Health Union Representation Grievance Procedure Arbitration Procedure Seniority Leave of Absence Hours of Work Overtime Holidays Vacations Wages General Bulletin Board No Strikes or Lockouts Insurance Benefits Duration of Agreement Schedule "A" - Hourly Rates Schedule "C" - Humanity Fund Schedule "D" - Letter of Understanding Schedule E - Amendment to Scope 31 Schedule F Pension Plan. 32 Schedule G Forklift Training. 33 Schedule H Union/Management Meetings.. 34 Schedule I Saturday Wages and Payroll 35 Schedule J Job Clause. 36 Schedule K Job Security. 37 Schedule L Copies of CBA. 38 2

3 WAREHOUSE COLLECTIVE AGREEMENT between MCKESSON CANADA Corp. OF THE FIRST-PART and UNITED STEELWORKERS OF AMERICA (hereinafter referred to as "the Union") OF THE SECOND PART NOW, THEREFORE, this agreement witnesseth that: ARTICLE 1 - PURPOSE 1.01 The general purpose of this agreement is the furtherance of the mutual interests of both the Company and the Union, to provide for the operation of the plant under methods which will further, to the fullest extent possible, the safety and welfare of the employees, economy of operation, the quantity and quality of products, cleanliness of the plant and premises, and the protection of the Company's property; and, further, to provide for the establishment of a relationship between the Company and its employees which will contribute to the maintenance of industrial peace and the promotion of a friendly community spirit. Both parties to this agreement recognize it to be their duty to co-operate fully with each other, both individually and collectively, towards the attainment of the said objectives The masculine pronoun includes the feminine unless the context indicates otherwise. ARTICLE 2 - SCOPE AND RECOGNITION 2.01 The Company recognizes the Union during the term of this agreement as the sole collective bargaining agency with respect to all matters arising under this agreement for all its employees in its warehouses located at or within a 100 kilometer radius of Ottawa, Ontario, save and except foremen, persons above the rank of foremen, office and sales staff, registered pharmacists or those approved by Federal Government Part-Time 3

4 (a) The Company may employ five (5) part time employees for a maximum of 24 hours per week per employee in addition to replacements for sickness vacation or unexpected situations. In addition, the Company may employ up to six (6) part-time employees. In the event of a layoff of a full time employee, the Company will reduce the number of this pool of six part-time employees on a one for one basis. Union seniority will be achieved upon completion of the equivalent hours worked for the probationary period in accordance with Article Part time employees will have their rate adjusted after completion of their probation period to the next higher rate and upon completion of 2080 hours worked have their rate adjusted to the 12 month rate in Schedule A. In addition to the rate of pay the employee will receive 4% for vacation pay and upon completion of 10,400 hours of work 6%, statutory holidays (excluding Birthday, Day before Christmas, Day before New Years) in accordance with the collective agreement (eligibility determined by Employment Standards Act). Entitlement for bereavement in accordance with the collective agreement provided the employee is scheduled for the days of the bereavement. Safety shoes entitlement every two years. In lieu of any benefit and pension considerations the employee will be paid at the Job Class # 3 level. All other terms and conditions of the agreement apply. In the event that an employee is hired in Job Class #3 or lower, the rate of pay will increase by the same difference between Class #4 and Class #3. A Part Time employee will be given the opportunity to work as Term Replacement or Project employee based on seniority. The employer will post work schedules covering all Part Time employees at least seven (7) calendar days in advance. Such schedule will identify which position and when part time employees are scheduled to work. When making the schedule, shifts shall be allocated by seniority provided the employees have the necessary qualifications. In cases of absences of other employees, the part-time employee on-site can to be used to fill the hours needed. Part-time employees will be given the option of continuing vacation pay on each paycheck or to pay out once a year on the anniversary date of employee. One month prior to the employee s anniversary date the employee must inform the employer as to the method of vacation payment for the following year. If the employee fails to inform the employer of any change in vacation payment then the existing method of payment will continue until following anniversary date. Upon hire, new employees will be given vacation payment option by the employer. b) Term Replacements - These employees are hired to replace an absent employee(s) for vacation, sickness, accident, maternity/parental leave, etc. Employees do not accumulate seniority until after working 60 work days. It is understood and agreed that the employee shall have no right of access to the grievance and arbitration procedure with respect to termination of employment, until the completion of the 60 days worked. The number of Term Replacements will not exceed the number of Full Time, Part Time or Project employees absent. The rate of pay for a Term Replacement employee would be the rate of job class for the work they are performing during their term of employment. They would be paid for all hours worked in accordance with the collective agreement. A Term Replacement employee is not entitled to Article and, if hired after April 25, 2000, Article 21. (i) Term Replacement employees will be given the option of continuing vacation pay on each paycheque or to pay out once a year on the anniversary date of the employee. One month prior to the employee s anniversary date, the employee must inform the employer as to the method of vacation payment for the following year. If the employee fails to inform the employer of any change in 4

5 vacation payment, then the existing method of payment will continue until the following anniversary date. Upon hire, new employees will be given vacation payment option by the employer. (ii) A Term Replacement working on the night shift will be considered for a day shift Replacement position, by seniority, prior to hiring any new day shift Term Replacement, providing the night shift Term Replacement employee provides written notification to the supervisor of his/her desire to change shifts prior to the hire of a new Term Replacement employee on the day shift. (c) (d) (e) (f) Project Employees hired not to replace an absent full time or part time employee may be employed for a period of 60 work days. Should the project last longer than 60 work days it may be continued for a further specific period of time by mutual consent or posted as a full time position and no seniority will accumulate. It is understood and agreed that the Project employee shall have no right of access to the grievance and arbitration procedure with respect to termination of employment during the term of the Project and if longer than 60 work days by mutual agreement with the Union. Before a Term Replacement, Part Time or Project Employee is permitted to perform work in Class #3 job, full time employees will be given the opportunity to perform the work through a temporary job posting. The rate of pay for a Project employee is the start rate of job class that they are performing. They would be paid for all hours worked in accordance with the collective agreement. In addition to 4% vacation pay and other statutory requirements under Employment Standards, no other benefits would apply. A Project employee is not entitled to Article The date of hire of a Term Replacement employee will be the determining factor among Term Replacement employees in the event of layoff or for hiring for a full or Part Time position. Temporary vacancies that exceed 10 work days will be offered to full time or Part Time employees on the basis of seniority, provided the most senior employee can perform the normal requirements of the job, through a temporary job posting. An employee who elects to accept such a move will continue to be paid in accordance with the collective agreement and it is understood that the applicant will return to their previous classification at the end of the assignment. A full time employee accepting a lower paying job at their convenience shall be paid the rate of the classification and for their length of service in accordance with Schedule A. Before commencing such employment (for Term Replacement or Project employees) the Company will advise the Union in writing, stating the name of the employee, specific term of employment, or the name of the employee being replaced. ARTICLE 3 - NO DISCRIMINATION OR COERCION 3.01 Neither personal harassment nor violations of the Human rights Code shall be tolerated and any alleged breaches may result in corrective action or a grievance. The Union and Company will jointly investigate the facts of the complaints of harassment and violations of the Human Rights Code. The Union will select a representative from the same shift as the employee who is making the allegations and shall not suffer a loss of wages for participating in the joint investigation. Upon being informed of the allegations of harassment, a fact finding investigation will be conducted and a report, in writing, will be given to the Employer and the Union Chief Steward, within 5 business days, or such longer time as may be necessary in exceptional circumstances. For the purposes of maintaining the time limits related to article 9.01(step 2 b), the date of the originating circumstances shall be that upon which a decision is rendered by the Employer with respect to the incident. Any person involved in the incident either directly, or as a witness, shall not be involved as an investigator. 5

6 The Company will provide anti-harassment training to its employees at least once every two years. ARTICLE 4 - MANAGEMENT RIGHTS 4.01 The Union recognizes the exclusive right of the Company to maintain order, discipline and efficiency, and to manage the Company's plants and to direct the working forces, including the right to hire, retire, promote or transfer an employee and to demote, discipline, suspend or discharge for just cause any employee who has completed the probationary period (sixty [60] days worked) subject to the grievance procedure herein. It is understood and agreed that during the probationary period (sixty [60] days worked) an employee shall have no right of access to the grievance and arbitration procedure with respect to termination of employment In the interest of efficient operation, the Union agrees that the Company has the right to determine or to change work assignments or methods and processes, and to divide operations, into departments or otherwise, at any time deemed advisable The Union recognizes the right of the Company to make and alter, from time to time, such rules and regulations to be observed by its employees, as are necessary to the proper conduct of its business. Such rules and regulations, including any amendments or alterations thereto, shall not conflict with any of the terms or provisions of this agreement and will be communicated to employees by posting, with a copy to the Unit Chair. Any allegation that an employee has violated any of the foregoing, as well as any penalty imposed for such alleged violation, shall be subject to the Grievance Procedure and Arbitration Procedure of this agreement, provided such changes do not conflict with the other provisions of this agreement. The Company and the Union agree that the specific penalty for theft, or deliberately diverting Company products with the intent of theft, may be termination for cause. Any action or termination for cause, under this article, is subject to the grievance procedure outlined in the collective agreement.. ARTICLE 5 - UNION SECURITY 5.01 The Company shall deduct from the pay of each member of the bargaining unit, such union dues, fees and assessments as prescribed by the Constitution of the Union. The dues so deducted shall be remitted along with a list of the names of employees from whom such deductions have been made within one week of the end of the month, payable to the International Treasurer, United Steelworkers of America, P.0. Box 13083, Postal Station "A", Toronto, Ontario, M5W 1V7. The monthly remittance shall be accompanied by a statement showing the names of each employee from whose pay deductions have been made and the total amount deducted for the month. Such statements shall also list the names of employees from whom no deductions have been made and the reasons why, along with any forms required by the International Union. A copy of such statement and any forms sent to the International will be given to the Unit Chairperson. 6

7 The Union agrees to indemnify and save the Company harmless against all claims or other forms of liability arising out of, or by reason of, deductions made in accordance with the provisions of this Article. The Company agrees to print amount of total dues deductions paid by each employee for the previous calendar year on the Income Tax T-4 Form. ARTICLE 6 - MEDICAL EXAMINATION 6.01 All new applicants will be required to take a medical examination at the Company's expense as a condition of employment before being hired (a) In the interest of ensuring the safety and health of all employees, the Company may require any employee to submit to a medical examination by a physician of the employee's choice at any reasonable time during regular daytime hours. Such examination and any medical reports resulting therefrom shall be paid for by the Company. (b) In the event the company is not satisfied with the medical information provided by the physician chosen by the employee, the company may require the employee to submit to a medical examination by a physician employed by the company, at any reasonable time during regular daytime hours. Such examination and any medical reports resulting therefrom shall be paid for by the Company. c) Where the physician employed by the company provides medical information which conflicts with the opinion of the employee's physician, an independent medical opinion will be obtained by mutual consent, at the company's expense, and during regular daytime hours. The company will reimburse the employee for transportation expenses to and from the independent physician's office in accordance with the company's current kilometer rate. The opinion of the independent physician will decide the matter. Mutual consent is defined as the agreement by both parties for the process of selecting the independent physician who will decide the matter. The parties will request the Ontario College of Physicians to select three physicians who specialize in the field related to the medical problem and in the closest feasible geographic area to the employee. The choice of independent physician will be made from that list starting with physician who is able to provide the earliest appointment date. The choice of the independent physician will be made by the employer and union designate calling all three physicians. An appointment will be made after the employer and union designate consult with the employee as to his availability at the earliest available date. d) In the event an employee is required to have a medical examination during his/her regular working hours, such employee will be paid at his/her regular rate of pay for time required to complete the medical examination. Such medical appointments will be scheduled for a time that is mutually agreeable to the company and the employee. e) An employee who returns to work following an absence of three days or more is required to provide a medical certificate at his or her own expense, if any. In the event that the Company is not satisfied with this certificate and additional information is required, the Company will 7

8 pay the cost, if any, of the additional certificate. If the Company requires a medical certificate for absences of less than three days, the Company will pay the cost, if any, of such medical certificate. ARTICLE 7 - SAFETY AND HEALTH 7.01 An employee may refuse to work or do particular work where he has reason to believe that: (a) Any equipment, machine device or thing he is to use or operate is likely to endanger himself or another employee (b) the physical condition of the work place or the part thereof in which he works or is to work is likely to endanger himself; (c) Any equipment, machine or device or thing he is to use or operate or the physical condition of the work place or the part thereof in which he works or is to work is in contravention of the Occupational Health and Safety Act and is likely to endanger himself or another employee. (d) If an employee refuses to work or do particular work, he shall promptly report the circumstances of his refusal to his supervisor, who shall forth with investigate the report with at least one (1) company and one (1) union member of the Health and Safety Committee. The employee must remain at the work station or a safe place nearby while the immediate investigation takes place. (e) Following the investigation and any steps taken to deal with the circumstances that caused the employee to refuse to work or do particular work, if the employee continues to have reasonable ground to believe that carrying out the work would endanger himself or another employee, then an inspector representing the Ministry of Labour shall investigate the refusal to work, and shall give his decision in writing as soon as possible. (f) Where practicable, the employee shall be found alternative work pending the investigation and the decision of the inspector. (g) Pending the investigation of the inspector, no employee shall be assigned to use or operate the equipment, machine, device or thing or to work in the workplace or the part thereof which is being investigated. If the employee still refuses, the Company may ask any other employee to operate or work the above equipment, machine device or thing, provided he is told of the other employee s refusal and reason given for refusing in the presence of the union member of Health and Safety Committee. (h) No disciplinary action shall be taken against any employee by reason of the fact that he has exercised the right conferred upon him under this article The Company will make reasonable provision for the safety and health of its employees during the hours of their employment. Such protection devices as the Company requires to be worn and other equipment which, in the opinion of the Company, is necessary to protect employees from injury shall be provided by the Company and worn by the employee Where safety footwear is required the Company will contribute one hundred twenty dollars ($120.00) effective, upon ratification, toward the cost of providing such footwear on the basis of one pair for each contract year The Company agrees to furnish and maintain adequate first aid facilities and to have available a person qualified to administer first aid. 8

9 7.05 The Company and the Union desire and agree to maintain high standards of safety and health in the plant, and to co-operate in the continuing objective of eliminating safety and health hazards in order to prevent industrial injury and illness. The Joint Health and Safety Committee will be comprised of an equal number of representatives from the Company and the Union to a maximum of four representatives from each party. At least two of the Union representatives shall be from the night shift. Each party shall name a co-chair. The Joint Health and Safety Committee shall hold meetings as required by the Ontario Occupational Health and Safety Act. Minutes of such meetings shall be taken and copies forwarded to the employees and the Union. Ad hoc meetings of Joint Health and Safety Committee members on a particular shift may be held more frequently as required by a member of the Joint Health and Safety Committee. Workplace inspections of at least two members of the Joint Health and Safety Committee will be conducted on a monthly basis. Note: one co-chair from union and one co-chair from mgmt 7.06 The Joint Health & Safety Committee will review all accidents and incidents, including investigation reports and other pertinent documents, as a standing agenda item at the Joint Health & Safety Committee Meetings. At all times the JHSC will operate within the Occupational Health & Safety Act. If requested by the employee, a completed copy of the Workplace Safety and Insurance Board s Form 7 will be provided. ARTICLE 8 - UNION REPRESENTATION 8.01 The Company acknowledges the right of the Union to appoint or otherwise select from among the permanent employees of the bargaining unit, a union grievance committee, the membership of which will consist of a maximum of two (2) members. When any local union representative is meeting with management such time shall be considered as hours worked and is paid at the applicable rate The Company acknowledges the right of the Union to appoint or otherwise select from among the permanent employees of the bargaining unit, a union negotiating committee, the membership of which will consist of two (2) members along with representatives of the International Union. Any time spent to attend meetings with management up to conciliation shall be considered as hours worked and shall be without loss of pay The Union agrees to supply the Company with the names of the members of the Committee and plant stewards and will keep this record up-to-date at all times It is understood and agreed that the plant stewards and members of the Committee have their regular duties as employees to perform. The plant stewards shall, after obtaining permission from the Supervisor, be permitted, during his working hours and without loss of time or pay, to leave his regular duties for a reasonable length of time in order to investigate and settle grievances. A member of the Committee shall, after obtaining permission from the Supervisor, be permitted during his working hours and without loss of time or pay, to leave his regular duties for a reasonable length of time in order to attend committee meetings with the management representative. 9

10 8.05 (a) No employee will be disciplined without union representation unless the employee specifically waives the right to union representation. The union shall ensure that union representation is available on each shift and shall inform the company which employee constitutes such union representation whenever there is a change. If there is no Union representation available on a shift, the employee will choose another member of the bargaining unit available on the shift as a witness. The waiver of union representation will be made in writing with a copy forwarded to the Unit Chair. (b) Where an employee is suspended or discharged the Union steward will be given time to meet with the employee prior to the employee leaving the premises. The Employer shall provide written reasons of removal as soon as possible as to why the employee was removed from the premises. Copies will be sent to the Unit Chair and the Union Staff Representation If no designated steward is available from the warehouse unit, the office steward will be authorized to represent them The Company will arrange a fifteen (15) minute orientation meeting with a new employee within 30 days of hiring, with an officer of the Union, provided the employee agrees to such a meeting Upon successfully completing the probationary period, as outlined in the collective agreement, employee(s) will have the option to attend a one (1) day Union course. Such time would be at a mutually agreed upon by both parties. The employer will not pay time for attending the course, however time spent at the course will be considered as time worked for accumulation of seniority purposes. ARTICLE 9 - GRIEVANCE PROCEDURE 9.01 (a) It is the mutual desire of the parties that all complaints with respect to the interpretation, application, administration or alleged violation of the Collective Agreement ( grievances ) be adjusted as quickly as possible. It is understood that an employee, with or without the assistance of his steward, must present an oral complaint to his immediate supervisor (his Supervisor ) before resorting to the grievance procedure below. The Supervisor shall provide the employee with an answer within two working days. Thereafter, if the matter is not resolved it may be grieved and disposed of in the following manner. Step 1: Within seven (7) working days of the incident, the grievance shall be presented to the supervisor in written form, signed by the employee and the Union steward, to the supervisor. The grievance shall specify the Article or Articles of the Collective Agreement of which a violation is alleged, include a short summary of the grievance, and shall indicate the relief sought. Within two days of the presentation, the supervisor shall meet with the steward, along with the employee, in an attempt to adjust (resolve) the grievance. The supervisor shall provide a written response to the grievance within five (5) working days of the meeting. STEP 2: 10

11 If the grievance still remains unsettled five (5) work days after presentation to the Supervisor it may be taken up by the Union Committee, and the Field Representative of the Union if desired by the Union, with accredited representatives of the Company within a further five (5) work days with a decision rendered in writing within a further seven (7) work days b) Unless agreed by both the Company and the Union, no grievance shall be presented, the alleged circumstances of which originated or occurred more than seven (7) regular working days prior to its original presentation. (c) All decisions arrived at by agreement between the representative or representatives of the Company and the Union Committee with respect to grievances shall be made in writing and shall be final and binding upon the Company and the Union. (d) The time limits specified in this article shall be deemed to be exclusive of Sundays, Saturdays and those holidays described in Article 15 of this agreement. (e) At every step of the grievance procedure the employer must provide the employee and the union with an answer in writing. Such answer will include a short summary of the Company s decision (a) A claim by an employee that he has been unjustly discharged will be treated as a grievance at Step 2, provided that he files a grievance with the Manager within five (5) work days of his discharge. Such grievance may be disposed of by reinstating the employee without loss of seniority or pay for time lost, or may be dealt with in any other way which,, in the opinion of the parties or of an arbitrator, is considered to be just and equitable. (b) Notwithstanding the provisions of paragraph 9.02 (a), it is agreed that in the case of the discharge of an employee during the employee's probationary period (first 60 days worked), the employer may discharge a probationary employee for any reason, including without cause, so long as the discharge is not arbitrary, discriminatory or in bad faith A Company grievance may be taken up with the Union at Step 2, between the Management and the Union Committee. In all cases, the Union's decision regarding same will be given in writing, and failing satisfactory settlement the grievance shall be subject to the arbitration procedure A union grievance may similarly be taken up with the Company at Step 2, on matters where policies of the Company are alleged to be in violation of the Collective Agreement, provided such grievance cannot be otherwise brought forward as a grievance of an employee or group of employees, pursuant to articles 9.02 a, 9.02 b, and The Company's decision in such cases shall be given in writing, and failing satisfactory settlement the grievance shall be subject to the arbitration procedure It is agreed that time limits set forth in the grievance procedure and arbitration procedure may be extended by the request of either party, made in writing to the other party. In the event the Company fails to convene at a grievance meeting or to respond within the agreed upon time limits, the grievance will be automatically advanced to the next step of the grievance procedure outlined in article 9, or the arbitration procedure outlined in Article

12 9.06 Where two or more employees allege the same violation of the collective agreement and seek the same remedy, such may be processed as a group grievance provided each of the grievers sign the grievance. The grievance will be dealt with at Step All disciplinary notations other than Health and Safety, Human Rights Violation or criminal activity on McKesson property or criminal activity involving McKesson products shall be physically expunged from the employee s files after twelve (12) month clear period. ARTICLE 10 - ARBITRATION PROCEDURE If the matter is not settled within thirty (30) work days after it has been brought to the attention of the management or within any longer period as may be agreed upon between the management and the Union Committee, it may be referred to an arbitrator, constituted as follows: Where a difference arises between the parties relating to the interpretation, application, administration, or alleged violation of this agreement, where an allegation is made that this agreement has been violated, or that any employee has been unjustly disciplined, either of the parties may, after exhausting any grievance procedure established by this agreement, notify the other party in writing of its desire to submit the difference or allegation to arbitration and the notice shall contain the names of three or more proposed arbitrators. The recipient of the notice may accept an arbitrator from the list or propose alternate arbitrators until one is selected by mutual agreement of both parties. If they are unable to agree on an arbitrator they may then request the Minister of Labour for the Province of Ontario to appoint an arbitrator The arbitrator shall hear and determine the matter and the award shall be final and binding upon the parties and upon any employee affected by it The arbitrator shall not have any power to alter or change any of the provisions of this agreement or to substitute any new provisions for any existing provisions or to give any decision inconsistent with the terms and provisions of this agreement. In cases involving discharge or suspension, however, the arbitrator may uphold the Company's action in discharging or suspending or may order reinstatement of the discharged or suspended employee with full compensation for time lost or may issue such other decision within these limits which, in the arbitrator's opinion, is just and equitable in the circumstances. Loss of seniority in any decision shall be limited to the period of the time off work or any suspension only No person may be appointed as an arbitrator who has been involved in an attempt to negotiate or settle the grievance Each of the parties hereto will jointly and equally bear the expense of the arbitrator At any stage in the grievance or arbitration procedure, the conferring parties, without any cost to the Company, may have the assistance of the employee or employees concerned and any necessary witnesses, and all reasonable arrangements will be made to permit the conferring parties to have access to the plant and to view disputed operations and to confer with the necessary witnesses. 12

13 ARTICLE 11 - SENIORITY The Company and the Union are agreed that the general policy in connection with seniority shall be security of employment for those members of the bargaining unit who have acquired seniority. The seniority plan must not operate to prevent the Company from maintaining an efficient working force of employees, or to maintain normal standards of efficiency (a) Seniority, as referred to in this agreement, shall mean length of service in the employ of the Company and shall prevail on a plant-wide basis. An employee will be considered to be on probation until he has worked sixty (60) worked days with the Company, after which time his name will be placed on the seniority list or lists dated sixty (60) worked days prior to the date he attains seniority. A seniority list shall be posted by the Company at a central location, a copy of which will be made available to the Union. The Union agrees that it will not question the dismissal of an employee during his probationary period so long as the dismissal is not arbitrary, discriminatory or in bad faith. Employees who successfully complete their probationary periods will be provided with a letter confirming such successful completion. (b) It is understood that seniority shall only be applicable within each individual branch unit. (c) A copy of the seniority list, issued by the Company four times per year, on or about March 31, June 30, September 30 and December 31, will be given to the Unit Chairperson. Effective February 1, 2002, when two or more full time employees are hired on the same day, their position on the seniority list shall be determined by the date and year of their birth, with the employee with the earlier birth date being the more senior employee The Company agrees that it will provide five (5) days' notice of lay-offs which are expected to exceed a period of two (2) days or will pay five (5) days' pay in lieu of such notice (a) Where there is a reduction in the workforce, employees in the classification affected will be displaced in reverse order of seniority. Such employees will be given the opportunity to displace the employee with the least seniority in another job classification group position (shift of his choice) provided the employee can perform the normal requirements of the position. (b) An employee will be paid at the rate of pay of the classification he/she bumps into. (c) Employees will be recalled to work in order of seniority provided the employee can perform the normal requirements of the position. (d) Transfers to higher paid jobs will be based primarily on seniority provided the senior employee can perform the normal requirements of the job (a) Any vacancy of a permanent nature or any temporary vacancy exceeding ten (10) days, shall be posted on a bulletin board for a period of three (3) consecutive working days, and will designate whether the vacancy is on days or nights. A copy of the job posting and awards will be given to the Chairperson. Employees may apply for posted vacancies by written application within the said three (3) days. Only the original vacancy, and the vacancy resulting from the filling of the original vacancy, shall be posted. Subsequent vacancies need not be posted and may be filled by seniority provided the most senior employee can perform the normal 13

14 requirements of the job. A successful applicant for a posted vacancy shall not be eligible to apply for another posted vacancy for a period of sixty (60) working days unless such a move is to a higher classification and or another position on a different shift. Such posting will include at least the date, job classification, wage rate, hours of work, applicable shift, description of position, qualifications (certification and/or knowledge and skill), and that the posting is for a vacancy of a permanent nature or temporary vacancy of more than 10 days. Management will sign and date each job posting application as received, and provide a copy to the applicant The successful applicant to a job posting will be placed on the job within fifteen (15) worked days. Employees who are absent may pre-apply to a specific job posting in writing to the Administrator, or have a Union Representative apply for the posting on their behalf. The successful employee s name will be posted (b) Employees in the Office and Clerical unit may apply for entry-level warehouse positions. Limitation of not more than one successful applicant every six (6) months, except as agreed by the Branch Manager. Successful applicants will transfer with full seniority. Such applicants will be allowed to return to the office & clerical bargaining unit at any time within sixty (60) working days with full seniority. Notwithstanding the above, the company may use up to sixty (60) working days to determine the acceptability of the successful applicant. If at any time during this period the employee is determined by the company to be unacceptable, he/she shall be returned to the former position. In the above circumstances, the employees displaced by the applicant returning to his/her former position, shall in turn return to their former positions and shall have no recourse to challenge the moves. Employees who are absent may pre-apply to a specific job posting in writing to the Administrator, or have a Union Representative apply for the posting on their behalf. The successful employee s name will be posted c) The provisions and limitations outlined in 11.05b, above shall apply equally to employees of the Warehouse unit in relation to applying for positions in the Office and Clerical unit (a) Applications shall be considered by the Company on the basis of seniority provided the senior employee can perform the normal requirements of the job. If no applicant is considered acceptable on the above basis, the Company may fill the vacancy from outside sources. (b) Vacancies for positions requiring regular part-time employment shall be posted in accordance with Article except that such vacancies need only be posted on a bulletin board for a period of two (2) working days and that employees may apply for such posted vacancies by written application within the said two days. (c) Ability, skill and qualifications gained as a result of filling a temporary vacancy will not be considered when filling a permanent vacancy. 14

15 11.07 Promotions to positions with the Company but outside the bargaining unit are not covered by this agreement but if an employee is so transferred and is later transferred back again to his former position at the sole and undisputed discretion of either the employee or the Company within thirty days of his transfer outside of the bargaining unit, such employee shall be credited with the seniority he had accumulated at the time of his transfer outside of the bargaining unit The Union recognizes that persons not in the bargaining unit may assist in the warehouse work for emergency situations, including situations such as unanticipated employee absences when a replacement is not available The Company will not, however, extend the use of these persons in such a manner as to cause the lay-off or loss of wages to employees in the bargaining unit or to prevent or delay the posting of a job vacancy or the filling of a position that has been posted. In the event that there is a person not in the bargaining unit who is performing a Class #3 function, the Company will pay the senior Class #4 bargaining unit member working on the shift the higher Class #3 rate of pay for those hours worked by the non bargaining unit member An employee shall lose his seniority standing and his name shall be removed from all seniority lists and staff rolls for any of the following reasons: (a) If the employee voluntarily quits his employment with the Company... (b) If the employee is discharged for cause and such employee is not reinstated pursuant to the provisions of the grievance procedure herein. (c) If an employee who is recalled to work after a lay-off fails to notify the Company within three (3) working days that he accepts the recall, or fails to return to work or to furnish a satisfactory reason for not doing so within seven (7) working days after notice of recall has been sent by registered mail or by paid Company courier to the last address of the employee on the file in the employment office. Copies of recall notices shall be sent to the Union.. (d) If the employee overstays a leave of absence without securing extension of such leave of absence from the Company in writing, unless the employee can provide a reason satisfactory to the Company for not requesting the extension. (e) If he is absent from work without leave for more than three (3) consecutive working days, unless in the opinion of the Company or an arbitrator appointed under the grievance procedure, there was reasonable justification for such absence. (f) In the event an employee is absent from work because of inability to perform the normal requirements of the job, and such employee has exhausted or failed to qualify for short term or long term disability benefits, the employee will loose his/her seniority standing and be removed from staff rolls if it is unlikely that his/her medical condition would improve to the extent that he/she would be able to fulfill their employment obligations. (g) Is retired at age 65 or takes early retirement on or after age

16 11.10 Temporary Transfer An employee who is temporarily transferred to meet the Company's convenience to another job for which the regular rate is less than that which the employee is receiving, he shall retain his former rate, and if such transfer is to a job with a higher rate, the employee shall receive the higher rate paid for such job. Where it is necessary for the Company to transfer an employee to a higher rated classification, employees on-site for that shift will be asked on a voluntary basis by seniority. And where everyone has refused such transfer, the Company will assign an employee in reverse order of seniority within the classification. ARTICLE 12 - LEAVE OF ABSENCE (a) The Company may grant a leave of absence in writing to any employee for legitimate personal reasons, and any person who is absent with such written permission shall continue to accumulate seniority during his/her absence. The decision to approve or deny the leave of absence by the supervisor will be given in a reasonable timeframe. (b) Maternity and Parental Leave shall be granted in accordance with THE EMPLOYMENT STANDARDS ACT (a) Any two employees selected for any labour activity connected with the Union, necessitating time off from work for such labour activity, shall be granted such time off up to two (2) weeks without pay, without loss of seniority, provided that the granting of such time off will not unduly interfere with Company operations. In the event of an employee being elected to a permanent position in the Union which might necessitate a longer absence than two (2) weeks, the matter will be considered between the Union Committee and the Management (b) The Employer agrees to continue the pay of any employee absent from work on Union business for any 9 consecutive work days and the Union shall reimburse the Employer for such wages and benefits payment within fifteen (15) days of the date of receipt of invoice and the invoice is to be sent or delivered on the 1 st or 15 th of any month, provided the Company receives one weeks notice of such request If an employee works for wages elsewhere while on leave of absence, he will lose all seniority unless he has written permission from the Company to do such work Bereavement (a) Should a death occur in the immediate family of an employee, the company will grant leave of absence with pay at the employee's basic hourly rate provided that: (i) the employee has completed his probationary period; (ii) the employee concerned attends the funeral of the deceased; (iii) the leave of absence shall be for the day of the funeral and other days necessary for the employee to arrange the funeral, but shall in no event be for a period of more than five (5) consecutive working days for the death of a parent, spouse or child or more than three (3) consecutive working days for other immediate family members. However, in the event 16

17 that the burial is held at a later date, one of the aforementioned days of leave may be taken at the time of the burial. Consideration shall be given to allowing a day for return travel after the day of the funeral if such travel distance exceeds 500 kilometers one way, provided total paid time off does not exceed three (3) days. (b) "Immediate family" for purposes of this provision shall mean spouse, common-law spouse, child, parent, sister, brother, grandparents, grandparents of a spouse, grandchild, father-in-law and mother-in-law. c) "Common Law spouse" shall mean any person involved with the employee in a conjugal relationship outside marriage, and shall include both same sex and opposite sex partners. d) The provisions of (a) above shall apply in the event of the death of a brother-in-law or sister-in-law, except that the leave shall be limited to the day of the funeral only. Effective February 1, 2003 the leave will be for the day of the funeral plus one additional day for the employee to arrange the funeral. e) Consideration for a leave of absence for bereavement leave will be given to probationary employee. Any such leave of absence granted will be without pay Jury Duty and Crown Witness Leave Employees who have attained seniority shall be granted leave of absence with pay at their regular hourly rate, for the normally scheduled number of hours the employee would have otherwise worked for the purpose of serving jury duty, or as a crown witness. The employee shall reimburse the Company to the full amount of jury pay or witness fees received. For purposes of this clause all employees shall be reimbursed in full, in accordance to their respective shift. (Shift premium inclusive). ARTICLE 13 - HOURS OF WORK The normal hours of work shall be forty (40) hours per week, eight (8) hours per day, Monday through Friday. Day shift Monday to Friday beginning between 6:30-9:30 am Afternoon shift beginning no earlier than 11:00 am, and no later than 7:59 pm Night shift beginning between 8:00 pm - 12 Midnight (a) It is understood that the Company undertakes to communicate to, and discuss with, the Union any proposed change in the hours of work which affects the majority of employees in any classification at least three (3) work days ending Friday, before the change becomes effective. (b) Should the Company require to operate on a shift basis where no employees are currently working, the Company will provide 20 working days notice for employees moving to the new shift. 17

18 13.03 The Company shall schedule for all employees two (2) rest periods of fifteen (15) minutes each during their normal daily hours of work. When an overtime period of two (2) hours duration or more is scheduled, a rest period of fifteen (15) minutes shall be scheduled. It is the intention of the Company and the Union that the rest periods shall be strictly enforced Subject to Clause 13.01, the provisions of this article with reference to hours of work shall not be construed as a guarantee of any specified hours of work, either per day or per week If at the commencement of any work period an employee is late, he or she shall be penalized to the extent of five (5) minutes' loss of pay for lateness of from one (1) minute to five (5) minutes and to the extent of an additional five (5) minutes' loss of pay for lateness for every fraction of a five-minute period thereafter. For example: For any lateness up to five (5) minutes the penalty shall be five (5) minutes loss of pay. For any lateness of from six (6) to ten (10) minutes the penalty shall be loss of pay for ten (10) minutes. Lateness of an employee shall be calculated from his or her time clock records An employee who reports for work at his regularly scheduled starting time, not having been previously advised not to so report, shall be given a minimum of four (4) hours' work at any work available or four (4) hours' pay in lieu of such work at the employee's regular rate of pay. The Company shall not be subject to this obligation if such employee is prevented from working because of fire, lightning, power failure, storm or like cause of work stoppage beyond the control of the Company or if such employee has not kept the Company advised of his current address and telephone number Shift Hours: Hours of work for shift operations shall be as follows: (i) Afternoon shift beginning no earlier than 11:00 am, and no later than 7:59 pm A $0.60 premium for each hour worked. Night shift beginning between 8:00 pm 12 midnight (ii) The normal hours of work shall be forty (40) hours per week, eight (8) hours per day, Sunday (pm) through Saturday (am) (iii) Week-end premium (14.02 refers) shall not apply to the hours of work at the beginning or end of a shift. E.g. Where a shift commences on Sunday as provided in (i) above, no Sunday premium (14.02 refers) shall apply to the hours worked on Sunday. Where a shift finishes on Saturday, no Saturday premium (14.02 refers) shall apply to the hours worked on Saturday. (iv) Night Shift Premium 18