COLLECTIVE AGREEMENT HANFORD LUMBER LIMITED. - and - UNITED STEELWORKERS LOCAL (USW - LOCAL 1-500) Effective from May 16, 2016 to May 15, 2021

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1 COLLECTIVE AGREEMENT HANFORD LUMBER LIMITED - and - UNITED STEELWORKERS LOCAL (USW - LOCAL 1-500) Effective from May 16, 2016 to May 15, 2021

2 2 TABLE OF CONTENTS ARTICLE 1 ARTICLE 2 ARTICLE 3 ARTICLE 4 ARTICLE 5 ARTICLE 6 ARTICLE 7 ARTICLE 8 ARTICLE 9 ARTICLE 10 ARTICLE 11 ARTICLE 12 ARTICLE 13 ARTICLE 14 ARTICLE 15 ARTICLE 16 ARTICLE 17 ARTICLE 18 ARTICLE 19 ARTICLE 20 ARTICLE 21 ARTICLE 22 ARTICLE 23 ARTICLE 24 ARTICLE 25 ARTICLE 26 ARTICLE 27 ARTICLE 28 ARTICLE 29 ARTICLE 30 Preamble or Purpose.3 Scope 3 Recognition...4 Management's Rights 4 Union Security..5 Union Representation....6 Grievance Procedure Arbitration. 9 Discrimination and Discipline.10 Hours of Work and Overtime.11 Paid Holidays...12 Vacations.13 Indemnity and Compensation Recipients 15 Job Posting...15 Temporary Transfers 16 Leave of Absence.17 Bulletin Board..17 Rest & Wash-Up Periods. 18 Health & Safety Reporting for Work Allowance Call-In Pay...20 Stand-By Pay...20 Bereavement Leave & Bereavement Pay Benefits Classifications and Wages...24 Seniority...26 Pay if Injured on the Job.. 29 Notices.29 Duration of Agreement General Provisions... 30

3 3 THIS AGREEMENT made this 25th day of May, 2016 BETWEEN: HANFORD LUMBER LIMITED (its successors and assigns) (hereinafter referred to as the "Company) - and - UNITED STEELWORKERS LOCAL (USW - LOCAL 1-500) (hereinafter referred to as the "Union") OF THE FIRST PART OF THE SECOND PART ARTICLE 1 Preamble or Purpose 1.01 The general purpose of this Agreement between the Company and the Union is to establish and maintain: (a) (c) orderly collective bargaining relations; a procedure for the prompt and equitable handling of grievances; satisfactory working conditions, hours of work and wages, for all employees who are subject to the provisions of this Agreement. ARTICLE 2 Scope 2.01 This Agreement shall apply to all employees outlined in the bargaining unit defined in the certification issued by the Ontario Labour Relations Board on the 16 th day of December,1971: "all employees of Hanford Lumber Limited at Metropolitan Toronto, save and except foremen, persons above the rank of foreman, office and sales staff, persons regularly employed for not more than 24 hours per week and students employed during the school vacation period."

4 Except in cases of emergency, instruction, training, or experimental work, an employee outside the bargaining unit shall not perform the work done by a member of the bargaining unit where the effect of the work done by the employee outside the bargaining unit is to displace a member of the bargaining unit. ARTICLE 3 Recognition 3.01 The Company recognizes the Union as the sole and exclusive collective bargaining agent with respect to rates of pay, hours of employment and all other conditions and terms of employment for all employees of the Company in the bargaining unit above defined The company reserves the right to employ students for a maximum of one hundred and twenty (120) days during the period May through August annually, and part-time employees outside the bargaining unit, so long as such students or part-time employees do not displace members of the bargaining unit The company agrees that work or services presently performed or hereafter assigned to the bargaining unit shall not be subcontracted, transferred, leased, assigned or conveyed, in whole or in part, to any other plant, person, company or non-union employee except as specified in paragraph 2.02 and It is acknowledged that the Company from time to time may subcontract hauling and trucking of materials in whole or in part to subcontractors where the Company's own trucks are insufficient or unavailable or in cases where, in the Company's determination, it cannot itself do the hauling and trucking economically, so long as such subcontracting does not displace members of the bargaining unit who normally perform such jobs. ARTICLE 4 Management's Rights 4.01 The Union recognizes and acknowledges that the management of the Company's business and the direction of the working force are fixed exclusively in the Company and that the Company retains any and all rights not otherwise specifically and expressly restricted by the terms of this Agreement. Without restricting the generality of the foregoing, the Union acknowledges that it is the exclusive function of the Company to: (a) Maintain order and efficiency;

5 5 (c) (d) (e) (f) (g) (h) (i) Determine the location and number of facilities, the kinds and locations of equipment to be used, and the kinds of business to be conducted; Determine the size and composition of the workforce and reduce the workforce, when it is deemed necessary; To extend, limit, curtail or cassette operations or any part thereof; Allocate and assign work, determine the content of jobs, introduce new jobs and with respect to them during the contract term, determine the number of employees required to perform any job or function, assign employees to a job; Determine the standards of performance for employees, develop and implement job evaluations; Determine the hours to be scheduled; Hire, promote, demote, classify, transfer, lay off employees; Discharge or otherwise discipline employees, provided that employees will only be discharged or otherwise disciplined for just cause The Company agrees that it will not exercise these rights in a manner inconsistent with any other article contained in this Agreement. ARTICLE 5 Union Security 5.01 All hourly rated employees of the Company who complete the probationary period of ninety (90) days of work, meaning that the probationary period will not include time lost for any reason, including sickness, accident or lay-off, shall then become members of the bargaining unit, and shall become and remain members in good standing in the Union as a condition of continued employment 5.02 (a) The Company shall deduct an amount equal to the regular monthly Union dues and initiation fees as authorized by the Union in accordance with the provisions of this article; The dues and/or initiation fees shall be deducted as follows: (i) For members of the bargaining unit from the second pay of the month, provided that the employee has worked by the second pay at least five (5) days in the month;

6 6 (ii) For probationary employees, from the second pay of the month in which that employee has been employed at least thirty (30) days, provided that the employee has worked by the second pay at least five (5) days in the month; provided that if a member of the bargaining unit has not accumulated five (5) days of work by the second pay of that month, his dues will be deducted from the next pay that he accumulates five (5) days of work, and those dues will be remitted to the Financial Secretary of the Union with the following month's dues. (c) All dues and/or initiation fees deducted by the Company as per article 5.02 (i) and (ii) shall be remitted to the financial Secretary of the Union by the end of the month in which they were deducted together with a list showing the employees from who the due and/or initiation fees were deducted and the amounts deducted from each employee. A copy of the list will be forwarded to the Plant Chairperson. (d) (e) (f) The deduction and payment of Union dues and/or initiation fees on account of the employees aforesaid shall be a condition of employment. The Union shall save the Company harmless from any and all claims that may be brought by a probationary employee for deduction of Union dues and initiation fees collected in accordance with article 5.02 of the Collective Agreement. The Union shall provide notice in writing to the Company of the amount to be deducted from dues and for initiation fees, which notice shall be provided to the Company at least thirty (30) days prior to the effective date of any change in the amount of dues or initiation fees The Union shall indemnify and save the Company harmless against all claims or other forms of liability that may arise out of any actions taken by the Company in compliance with this article. ARTICLE 6 Union Representation 6.01 The Company recognizes the Union Grievance Committee which shall consist of not more than two (2) Stewards, one of whom shall be from the East Yard, and one of whom shall be from the West Yard, and one (1) Plant Chairperson and/or Vice-Chairperson elected or appointed by the Union. The Committee shall meet the Company at such time as is mutually agreed upon by the parties at the request of either party, provided that the Chairperson, Vice-Chairperson and Steward of

7 7 the West Yard or East Yard as the case may be can meet for up to one-half hour prior to the meeting of the Grievance Committee with the Company to discuss the grievance It is understood that the Stewards, the Plant chairperson and Vice-Chairperson have their regular duties to perform on behalf of the Company, and will not absent themselves from their regular duties any more than is absolutely necessary in order to deal with the grievances of employees and only after explaining the reason for their leaving work and receiving permission from their supervisor to do so. Such permission will not be unreasonably denied. It is understood that the Stewards of the East Yard and the West Yard respectively will spend time in handling grievances and attending meetings of the Grievance Committee where the subject of such grievances or meetings as the case may be pertain to their respective yards. The Company will compensate such Stewards, Plants Chairperson and Vice-Chairperson at their regular straight time pay for time spent in handling grievances of employees on Company premises, and attending meetings of the Grievance Committee on Company premises in accordance with the preceding sentence. The Grievance Committee will be compensated at their regular straight time rates for any time spent in attending meetings with the Company beyond regular working hours. The Company agrees that when the number of employees in the bargaining unit exceeds thirty (30) employees, then the Grievance Committee may be comprised of one Steward from the East Yard or West Yard, together with the Plant Chairperson and Vice-Chairperson. The Company agrees that the Grievance Committee can meet for up to one half-hour prior to the meeting of the Grievance Committee with the Company to discuss the grievance The Company recognizes a Union Negotiating Committee normally composed of two (2) employees, but may be reduced to one (1) employee where business conditions warrant it and the union has mutually agreed. Employees who are members of this Committee will be given time off to negotiate new or revised Collective Agreements and shall be paid straight time for each scheduled working day devoted to meetings with the Company for the purpose of negotiating new or revised Collective Agreements, excluding meetings subsequent to the appointment of a mediator In view of the orderly procedures established by this Agreement for the setting of disputes and the handling of grievances, the Union agrees that during the lifetime of this agreement, there will be no strike, slow-down or stoppage of or interference with work or production, either complete or partial, and nor should the Union support or encourage such and the Employer agrees that there will be no lockouts of the Employees.

8 8 ARTICLE 7 Grievance Procedure 7.01 Should any difference arise between the parties, an earnest effort shall be made to settle such differences without undue delay., It is understood that an employee has no grievance until such employee (with the Plant Chairperson or Vice- Chairperson or Steward being present, has first given his foreman an opportunity to settle his complaint. Failing satisfactory settlement, the following grievance procedure shall be implemented: Step 1: (a) The aggrieved employee shall present his grievance, in writing, to his foreman or designate within three (3) working days of the occurrence giving rise to the grievance or within three (3) working days of the employee having knowledge of the occurrence giving rise to the grievance. He shall have the assistance of his steward to prepare his grievance, if he so desires. The foreman shall render his written decision to the aggrieved employee within three (3) working days of receiving the grievance. Step 2: (a) If, following the response by the foreman, a satisfactory resolution of the grievance is not reached, the grievance shall then be referred to the Union which shall meet with the President or her designate at a meeting to be held within 3 working days of receiving the foreman's decision regarding the grievance. The meeting shall be arranged mutually between the Union grievance committee and the Company. At the meeting between the Union grievance committee and the general manager, a national Union representative of the Union may be present. The general manager shall give his decision, in writing, on or before the end of the third working day following the day upon which the meeting was held If a satisfactory settlement of the grievance is not then reached, it may be dealt with by Arbitration as hereinafter provided within ten (10) working days of the date of the General Manager's decision in Step 2 above Either party may present a policy grievance in writing at step 2 of the grievance procedure within ten (10) working days after the occurrence. The meeting between the parties shall be held within three (3) working days of the date the

9 9 grieved party receives the grievance. The meeting shall be arranged mutually between the Union grievance committee and the company It is understood that the aggrieved employee shall be present at any of the meetings referred to in each Step above. ARTICLE 8 Arbitration 8.01 Where a difference arises between the parties relating to the interpretation, application, or administration of this Agreement, including any question as to whether a matter is arbitral, or where an allegation is made that this Agreement has been violated, 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 of allegation to Arbitration. This Notice shall contain the name of the first party's appointee to an Arbitration Board The recipient of the Notice shall, within five (5) days, advise the other party of the name of its appointee to the Arbitration Board. The two appointees so selected shall within five (5) days of the appointment of the second of them, appoint a third person who shall be the Chairperson. If the recipient of the Notice fails to appoint an Arbitrator, or if the two appointees fail to agree upon a Chairperson, within the time limit stated herein, the appointment shall be made by the Minister of Labour for Ontario upon the request of either party The Arbitration Board shall hear and determine the difference or allegation and shall issue a decision. This decision shall be final and binding upon the parties and any employee affected by it. The decision of a majority shall be the decision of the Arbitration Board, but if there is no majority, the decision of the Chairperson shall govern The decision of the Arbitration Board shall include a direction to the parties to do, or abstain from doing, anything necessary or appropriate to give effect to the true intent and meaning of the decision The Arbitration Board shall not have power to alter, modify or amend any part of this Agreement nor to make any decision inconsistent therewith, but may refer to any part of this Agreement, which may appear to the Board to be relevant, whether or not previous reference has been made thereto In any case arising out of any form of discipline, or the loss of any remuneration, benefit or privilege, the Arbitration Board shall have full power to direct that the penalty or loss complained of shall be confirmed, varied, amended, rescinded or

10 10 repaid, either in whole or in part, but except as aforesaid, the Board shall have no power to award costs or damages to either party Each party shall pay its own expenses, including expenses for appointees and witnesses. The expenses of the chairperson of the Arbitration Board shall be borne equally by the parties Nothing contained above in this Article shall prevent the parties from mutually agreeing to a single Arbitrator It will be the responsibility of the Arbitrator or the Arbitration Board to determine the precise issue(s) in dispute and settlement sought, regardless of the construction of the original language in which the written grievance was first presented. ARTICLE 9 Discrimination and Discipline 9.01 Both the Company and the Union agree that they will not discriminate against any employee because of race, creed, age, colour, national origin, political affiliation, family status, marital status or sexual orientation. This list will be automatically modified to reflect future changes to the prohibited grounds under the Ontario Human Rights Code There shall be no discrimination against any employee by reason of any Union activity or by reason of anything said, written or done legally as part of Union activity. No employee shall be discharged, laid off, suspended, demoted or disciplined in any way, whether by monetary penalty or otherwise, except for just, proper and sufficient cause. The question of just, proper and sufficient cause shall be subject to the Grievance procedure and shall always be arbitrable at the request of either the employee concerned or the Union (a) In the event that an employee of the bargaining unit is disciplined or discharged, the Company will notify the Union chairperson, or his designate, in writing before the end of the next regular shift. A claim by an employee who has been discharged, or suspended for more than three (3) days, may commence the Grievance Procedure at Step 2 and may be assisted by the Union plant chairperson, shop steward and the National Representative When an employee has been dismissed, he shall have the right to interview his Steward for not more than one hour before leaving the Company premises.

11 In determining any grievance arising out of discharge or other discipline, the Arbitration Board may dispose of the grievance by affirming the Company's action and dismissing the grievance or by setting aside the disciplinary action involved and restoring the griever to his former position with or without compensation, or in such other manner as may, in the opinion of the Board, be just and equitable. ARTICLE 10 Hours of Work and Overtime (a) The regular workweek shall be forty (40) hours per week, eight (8) hours per day, five (5) days per week, Monday to Friday inclusive. The regular starting time of work shall not commence earlier than 7:00 a.m. (c) Overtime pay shall be paid for work prior to 7:00 a.m. and after eight (8) hours of straight time work per day during the regular workweek Monday to Friday. (d) All time worked on Saturday will be paid for at the rate of time and one-half. (e) All time worked on Sunday will be paid for at the rate of double time All hours worked in excess of the times stipulated in Article above for a particular day or for the week shall be considered overtime and shall be paid for at time and one-half of the employee's regular rate of pay for each hour of overtime worked (a) Employees are expected to cooperate with the Company in the performance of a reasonable amount of overtime work, if required. However, all overtime work will be on a voluntary basis and the employer may not require any employee to work overtime against his wishes, except where employees may be needed for the normal operations of the business on Saturdays. Overtime work will be equally distributed amongst those employees with seniority and the qualifications to perform the work in question. Overtime on a Saturday will be distributed equally on a week-to-week basis amongst those employees qualified to perform the job in question. If an employee who normally performs the job in question is unavailable for overtime between Monday to Friday, the opportunity to fill that job on overtime shall be offered to other qualified employees of the bargaining unit in the following manner:

12 12 (i) (ii) seniority skill and qualifications. ARTICLE 11 Paid Holidays The following paid holidays shall be paid for at the employee's regular rate of pay if not worked and, if worked, employees shall receive twice their regular rate of pay: New Year's Day Thanksgiving Day Good Friday December 24 Family Day Christmas Day Victoria Day Boxing Day Canada Day December 31 st of each year Civic Holiday One (1) Floater (Employee's Birthday) Labour Day (a) The company agrees to allot to each employee in the bargaining unit two (2) paid scheduled days off each year, to be taken in that year, provided that prior management approval for the selected day is granted. It is understood that, subject to scheduling and staffing requirements, such management approval will not be unreasonably withheld In the event any of the aforementioned holidays fall on a Saturday or a Sunday, the Friday immediately preceding the Saturday holiday or the Monday immediately following the Sunday holiday will be observed as the holiday (a) In order to qualify for holiday pay, the employee must have worked his last scheduled shift preceding and his first scheduled shift succeeding the day on which the holiday is observed. Where a holiday falls on Monday or on Friday, the Company will notify two (2) days in advance those employees whom it requires to report for work on Saturday morning. Employees not so notified will be paid for the holiday as if they had worked the qualifying shift. Subject to the provisions of article (a), employees who agree to work and who fail to work the designated Saturday shift, will not be paid for the holiday. Any employee who is unable to work the qualifying shift because the employee is on Bereavement Leave in accordance with Article 23.01; or, because, the employee is sick for a period in excess of two (2) working days and for which he has the certificate of working days and for which he has the certificate of a duly qualified medical doctor confirming such sickness, will be paid for the holiday as if he had worked the qualifying shift. This will not apply to any employees on leaves of absence or who

13 13 are receiving weekly indemnity benefits or Workers' Compensation benefits If an employee is absent from work because of bereavement leave, he will be excused from the qualifying requirements for payment of holiday pay set forth in Article ARTICLE 12 Vacations Every member of the bargaining unit shall be entitled to annual vacation with vacation pay, commencing January 1st to December 31st, inclusive of each calendar year on the following basis: (a) (c) (d) (e) (f) (g) Employees who have completed twelve (12) months' continuous service with the Company shall receive two (2) week's vacation with pay amounting to four percent (4%) of their total earnings for the twelve (12) months of completed service. Employees who have completed one (1) year, but less than five (5) years of service with the Company, shall receive two (2) weeks' vacation with pay amounting to four percent (4%) of total earnings for the year preceding the commencement date of the vacation; Employees who have completed five (5) years' service with the Company shall receive - three (3) weeks' vacation with pay amounting to six percent (6%) of total earnings during the year preceding the date on which the vacation commences; Employees who have completed ten (10) years' service with the Company shall receive four (4) weeks vacation with pay amounting to eight percent (8%) of total earnings during the year preceding the commencement of the vacation; Employees who have completed seventeen (17) years' service with the Company shall receive five (5) weeks' vacation with pay amounting to ten percent (10%) of total earnings during the year preceding the commencement of the vacation; The continuous years of service of an employee shall be calculated commencing on the date on which the employee was hired. The vacation year shall be January 1 st to December 31 st

14 All vacation pay allowances shall be received, if requested, at the time of vacation, but in blocks of no less than one (1) week of pay, unless the employee does not have sufficient vacation pay accrued If, for any reason, the employment of an employee with the Company is terminated, he will receive with his final pay cheque all vacation allowances accumulated to his credit since his previous vacation, pro-rated on the above basis applicable to him In the event of the death of an employee, the company will pay his beneficiary an amount equivalent to the vacation pay to which he would have been entitled as provided in this Article, calculated from the date and computation of his previous vacation with pay to the date of his death If the day of observance of one of the paid holidays contained in this Agreement falls with the scheduled vacation of any employee, such employee shall at his option be paid for such holiday or given an additional day of vacation with pay at his regular rate of pay (a) Employees who desire any definite vacation period shall so notify the Company in writing before March 1st. Choice of such definite vacation period shall go to senior employee(s) (within each job category among those applying providing sufficient employees remain in each category to carry on the business of the Company) and be confirmed by the Company no later than April 1st. (c) (d) (e) Any employees hired on or after May 15, 2010, will not be permitted to take vacation during the busy season of May through to the end of September. Any employee with seven (7) or more years of service who takes all of his allotted vacation time outside the busy season as specified in above, will receive a bonus of Four Hundred Dollars ($400.00) payable during the first pay period of the next calendar year. Employees will still be eligible for the bonus if they do not take all of their allotted vacation, so long as any vacation they have taken was outside the busy season. It is understood that any request for a week of vacation as required by the collective agreement will take precedence over single day vacation requests in all circumstances, such that an employee with less seniority will have his vacation request granted over a single day requested by a more senior employee, whether or not that day has been granted. This applies to all requests that are made at the vacation request date. Generally, all requests for single days are at the discretion of management. Company to make its best efforts to reflect vacation pay on the pay

15 15 stub. ARTICLE 13 Indemnity and Compensation Recipients If any employee in the bargaining unit is absent from work and receiving Weekly Indemnity or Long Term Disability Benefits, the employee shall not be regarded as having worked all normal shifts where such a condition is required to qualify for any benefits contained in this Collective Agreement including, but without limitation, the benefits contained in Articles 11, 12, 19, 23 and the qualifying period referred to in Article An employee of the bargaining unit will not be deprived of accrued vacation benefits earned before he was absent from work and receiving Weekly Indemnity, Long Term Disability Benefits or Workers' Compensation Benefits but he will not accrue further entitlement to vacation with pay for the period he is absent from work receiving such Weekly Indemnity or Worker' Compensation Benefits. ARTICLE 14 Job Posting In the event new jobs are created or vacancies in hourly-rated jobs occur, the Company will post in each yard such - new jobs or vacancies for a period of three (3) working days in order to allow members of the bargaining unit to apply for such jobs In the event that two or more members of the bargaining unit apply for a job that is posted, the following criteria will be used in awarding such jobs: (a) seniority skill, ability, physical fitness and honesty As between two or more employees of approximately equal standing under subparagraph, seniority shall govern. If no suitable applications are received from members of the bargaining unit, the Company shall be at liberty to hire outside the bargaining unit. The Company will make its decision regarding the filling of the posted job, within two (2) working days after the third day of the posting of such job. A successful applicant from the bargaining unit will be placed in the posted job within two (2) working days after the third day of the posting of such job It is understood that any employee selected under this Article shall be given a trial or training period of at least fifteen (15) working days to a maximum of thirty

16 16 (30) working days to demonstrate his ability on the job. The Company may remove from the job an employee who is not capable of performing the work to be done. Such a decision is subject to the Grievance Procedure It is agreed that successful applicants of the job posting procedure will not be permitted to re-apply for other postings for a period of six (6) months, unless he is transferred by mutual consent (a) In the event a member of the bargaining unit is removed from a job awarded as a result of the posting of that job, he shall be permitted to return to his previous job. If, within sixty (60) working days, the member of the bargaining unit who has been awarded a job as a result of posting wishes to discontinue with that job, he will be assigned to the lowest job classification available, without loss of seniority. Such employee will have the right to apply for any further job vacancies, which may occur unless he is transferred by mutual consent to fill another position. ARTICLE 15 Temporary Transfers (a) Temporary transfers shall be those of no longer duration than fifteen (15) working days, unless extended by mutual agreement between the Company and the Union. The Company will transfer a junior employee capable of doing the job and who has the skills necessary and licenses, if required, to perform the job. In order to avoid being sent home prior to the end of his regular working day, a senior employee may request a temporary transfer to any junior position available, which he is capable and qualified to perform Any employee who is temporarily transferred by the Company to another job shall be paid as follows: (a) If the rate of pay for the job to which he is temporarily transferred is less than his regular rate of pay, he shall be paid the higher rate of pay; If the rate of pay for the job to which he is temporarily transferred is higher than his regular rate of pay, he shall be paid at the higher rate of pay provided that he works for a minimum of four (4) consecutive hours at the higher paying job.

17 An employee who requests a temporary transfer to another job, to which the Company consents, shall be paid as follows: (a) If the rate of pay for the job to which he is temporarily transferred is less than his regular rate of pay, he shall be paid the lower rate of pay; If the rate of pay for the job to which he is temporarily transferred is higher than his regular rate of pay, he shall be paid at the higher rate of pay provided that he works for a minimum of four (4) consecutive hours at the higher paying job. ARTICLE 16 Leave of Absence The Company agrees to grant Leave of Absence to employees for reasonable personal reasons and provided such requests are made in writing and with sufficient notice and the reasons for the Leave of Absence stated. Such leave will not be considered for the purpose of taking employment elsewhere. Such Leave of Absence may be without pay and with no loss of seniority. If an employee is absent without sufficient reason for more than three working (3) days he will thereupon cease to be an employee Leaves of Absence will be granted to employees who are elected or appointed to serve in an official Union capacity for a period of one (1) year which period may be extended for a further twelve-month period on mutual consent, so long as the granting of such leave does not impede the operations of the Company. All benefits (except pay for statutory holidays) will be continued for employees on a leave of absence (including a leave of absence for Union business), providing such leave of absence does not exceed one (1) month. ARTICLE 17 Bulletin Board The Company will provide 2 Bulletin Boards in mutually satisfactory locations for the convenience of the Union in posting Notices of Union activity. All such notices must be signed by the proper officers of the Local Union and submitted to the Manager and/or his authorized representative for approval before being posted, such approval will not be unreasonably withheld.

18 18 ARTICLE 18 Rest & Wash-Up Periods All employees shall receive a fifteen-minute rest period during the first half of the shift and a fifteen-minute rest period during the second half of the shift A five (5) minute wash-up period shall be allowed to each employee immediately prior to the quitting time of each shift. ARTICLE 19 Health and Safety The Company shall make all reasonable provisions for the safety and health of its employees and the Union Health and Safety Committee and the Union Stewards Committee shall have the right to make recommendations to the Management concerning the safety and health of the employees. Where in the opinion of the Union, the welfare and safety of an employee is endangered, the matter shall be taken up through the Grievance procedure (a) (i) The Health and Safety Committee shall be comprised of one (1) certified member from each of the union and management except if the total number of yard employees increases to greater than 20 in which case the size of the committee will be increased to two (2) members from each of the union and management. (ii) The Health and Safety Committee will also monitor the west yard. The Health and Safety Committee will met every three (3) months at a time mutually agreed upon and at such other times as may be required. The Company shall be responsible for recording and maintaining minutes of each meeting and a copy of the minutes shall be posted on the bulletin board with copies to be given to the member of the Health and Safety Committee and the local union chairperson (a) The Company will provide protective devices and other equipment necessary to safeguard employees from injury, including clothing as set forth in this sub-article. The Company will pay up to Two Hundred and Fifty ($250.00) in Year 1 of the agreement, increasing to Two Hundred Seventy-Five ($275.00) in Year 3 (effective May 16, 2018) per year toward the cost of safety shoes and work clothes (including raingear), with the understanding that proper safety shoes are the priority, to all employees who have completed twelve

19 19 (12) months of work. The employee can carry forward any remainder for up to one (1) year. In order to be eligible for the payment or the carryforward, the employee must produce a valid machine generated receipt, and then the payment will appear on the employee's next pay cheque, and will not be subject to tax. (c) (d) The Company will continue to supply employees with quality work gloves and safety vests when and where necessary, consistent with the job and weather conditions provided that the employees return used gloves and safety vests to the Company before a new pair is issued. No employee shall be required to operate a vehicle, machine or equipment, which would create an unsafe condition (a) The Health and Safety Committee shall be allowed a one (1) hour preparation period prior to attending any Health and Safety Committee Meeting. (c) The Company shall provide the Health and Safety Committee with a copy of the minutes of meetings not more than five (5) working days after such meeting takes place. ` The members of the Health and Safety Committee shall be paid their regular or premium rate for all time in attendance at such meetings The Company will permit time off to train one employee as a certified worker, and pay for such time at the employee's regular or premium rate A certified/health and safety member of the Health and Safety Committee will be entitled to investigate a worker complaint at the time of the complaint if such complaint relates to dangerous circumstances. The certified/health and safety member may request that the Health and Safety Committee direct that work be stopped in any part of the workplace, or with any equipment where dangerous circumstances exist, until such time as the dangerous circumstances are remedied. During such work stoppage, the employee will be paid his regular straight time hourly rate, and the Company may assign the worker reasonable alternative employment if it is available The parties agree to the following procedures and principles in the interest of maintaining a safe and healthy work environment: (a) Employees to report all accidents; Only the operator to be on the forklift while in operation, or in any company vehicle while it is being driven;

20 20 (c) (d) All damaged, lost or shortages of merchandise or equipment to be reported immediately together with the cause, if known; The company, the union and the employees agree to cooperate in maintaining a safe and clean working environment for everyone at Hanford. ARTICLE 20 Reporting for Work Allowance Any employee reporting for work at the start of his regular shift, without having been previously notified not to report, shall be given four (4) hours' work at his regular hourly rate or four (4) hours' pay in lieu thereof. Any employee not required for his regular shift, will be notified by 11:00 o'clock p.m. on the evening before such shift. It is the responsibility of all members of the bargaining unit to provide the Company with a valid telephone number where they can be contacted. ARTICLE 21 Call-In Pay Any employee called into work after leaving the premises of the Company following the end of his scheduled shift and before his next scheduled reporting time, shall be paid a minimum of four (4) hours at the rate of time and one-half of the employee's regular rate of pay in respect of each such call-in. ARTICLE 22 Stand-By Pay In the event an employee is required to stand by for any reason, such employee shall be paid his regular rate for the duration of such stand-by period. In the event an incentive or piecework employee is required to stand by for any reason, such employee shall be paid his average hourly earned rate over the last payroll period for the time he is required to stand by.

21 21 ARTICLE 23 Bereavement Leave & Bereavement Pay (a) The Company agrees to grant Bereavement Leave to all members of the bargaining unit who suffer the loss of their parents, spouse as defined in the Family Law Act, child, brother, sister, father-in-law, mother-in-law, grandparents, grandchildren, son-in-law or daughter-in-law, in accordance with following leave scale; Child, spouse, parent - Sibling, grandparent, grandchild - Parents-in-law, son-in-law, daughter-in-law four (4) days three (3) days two (2) days The company may, at its discretion, extend bereavement leave to five consecutive working days upon receipt of proof from the employee that the funeral of a family member described in this article is out of the province The Company agrees to pay such employee at his regular straight time rate only for those regular working hours that he would have worked had he not been on Bereavement Leave as defined in the above paragraph Employees shall provide satisfactory proof of death if requested. ARTICLE 24 Benefits From and after May 16, 2001, the following schedule of benefits shall be provided by and paid for by the Company for employees of the bargaining unit who have successfully completed their probationary period and have satisfied a qualifying period of twelve (12) months, necessary for the receipt of such benefits: (a) One hundred percent (100%) of the premium payable by each employee under the Ontario Health Insurance Plan; Group life insurance for eligible employees of Thirty Eight Thousand Dollars ($38,000.); employees sixty-five (65) years of age and older up to age seventy (70) to Six Thousand Dollars ($6,000) of insurance terminating at age seventy (70). Accidental Death and Dismemberment of up to Thirty-Eight Thousand Dollars ($38,000.00)

22 22 (c) Weekly Indemnity insurance benefits for an eligible employee shall be sixtysix and two-thirds percent (66 2/3%) of the employee's weekly salary to a maximum of Three Hundred and Twenty Dollars ($320.00) per week for the first two (2) weeks of absence. Thereafter, the employee must apply for Employment Insurance sick benefits, which will last for up to an additional fifteen (15) weeks. Should the employee remain eligible beyond this combined seventeen (17) week period, payment of long term disability will immediately commence for a maximum of five (5) years, amounting to sixtysix and two-thirds percent (66 2/3%) of weekly earnings, to a maximum of Fifteen Hundred Dollars ($1,500) per month in 2013, rising to Sixteen Hundred ($1,600) effective May 16, 2014, and ($1,700) effective May 16, Weekly Indemnity insurance benefits and long-term disability shall not be payable for absence caused by or related to pregnancy. Weekly indemnity benefits shall commence on the earliest of: (i) the first day of accident on which the employee is unable to work; (ii) the first day of illness on which the employee is hospitalized, or; (iii) the third day of sickness on which the employee is unable to work. The employee will pay 100% of the Long Term Disability premiums, which will be deducted on a weekly basis. (d) One hundred percent (100% of premium for dental plan equivalent to Blue Cross Dental Plan No. 7 with rider 9 attached, based on the applicable Ontario Dental Association Schedule of Rates with the following provisions; (i) The rate of reimbursement shall be 80% of the applicable Ontario Dental Association Schedule of Rates; and (ii) Annual limit of $1, per eligible plan member; and (iii) ODA fee guide to one (1) year lag; and (iv) Deductible of $20/$60 (single/family). (v) Eligibility after twelve (12) months of work. (e) One hundred percent (100%) of premiums for extended health care equivalent to Blue-Cross Health Plan with the following provisions; (i) Vision care amounting to Two Hundred and Fifty Dollars ($250.00) in Year 1, increasing to Three Hundred Dollars ($300.00) in Year 3 (effective May 16, 2018) for each twenty-four (24) month period for prescription glasses; and (ii) The rate of reimbursement for eligible prescription drugs shall be 80%; and (iii)dispensing fee cap of up to $9.00 per each prescription; and

23 23 (iv) Ontario Provincial drug formulary only; and (v) Deductible of $20/$60 (single/family). (vi) Eligibility after twelve (12) months of work The terms and provisions of the policies issued by the insurance companies relating to the benefits herein shall govern the administration and payment of all claims. It is understood the Company will be responsible for and secure coverage of all benefits covered under this Agreement In the event the Company requests that an employee undergo medical examination or medical certification, the costs of such examination or certification will be paid by the Company. This does not apply to a medical certificate required by an employee to demonstrate sickness for purposes of receiving benefits or other requirements of this contract (a) The employer acknowledges that every employee who suffers injury by accident arising out of and in the course of employment within the meaning of the Workplace Safety and Insurance Act shall be offered reinstatement in the position he held on the date of injury, or provided with alternative employment of the nature and at earnings comparable to the employee's employment on the date of injury. It is understood that notwithstanding the provisions herein the obligations to re-employ are governed by the Workplace Safety and Insurance Act. This provision applies to those employees injured post, January 1, The employer shall advise the Union Chairperson when notice is received from the Workplace Safety Insurance Board of the worker's ability to return to work The Company agrees to provide to the Chairperson of the Union a copy of Form 7, being the Employer's Report of Accident or Injury at the time it is submitted to the Workplace Safety Insurance Board The Company shall contribute up to 2% to a Registered Retirement Savings Plan (RRSP) for all employees in the bargaining unit who have completed twelve (12) months of service. The contribution level increases to 2.50% for participating employees who have achieved twenty-five (25) or more years of service. These contributions shall be remitted on a monthly basis and be based on the prior month s base wages. It is understood that the employees must agree to match the Company s contribution in order to participate.

24 All Employees must notify the Company in writing within five (5) days of any changes which may affect dependent coverage, including changes in marital status, etc. ARTICLE 25 Classification and Wages (a) During the term of this contract the following wages set out in this Article will be paid to members of the bargaining unit for the job classifications listed in the following schedule. Payment of wages at the rates shown in the following schedule commence May 16, 2016 and are retroactive to that date for all hours worked by the employees since that date who are in the employ of the Company as of the signing date of this Agreement. Wages at the rates contained herein shall not apply to any employee who has left the Company's employ prior to the signing date hereof. The amount of the retroactive increase will be paid to each employee in the bargaining unit employed by the Company as of the date hereof with the first pay cheque after the date hereof. All wages shown are hourly rates. The starting rate for all new employees in the bargaining unit shall be $3.00 per hour less than the regular rate for the job, until their successful completion of the probationary period. (c) Upon the completion of the probationary period, the employee shall be placed on the seniority list and thereafter receive the contractual classification rates. May 16/2016 To May 15/2017 May 16/2017 To May 15/2018 May 16/2018 To May 15/2019 May 16/2019 To May 15/2020 May 16/2020 To May 15/2021 CLASSIFICATION Truck Driver Tandem/AZ $21.00 $21.42 $21.74 $22.07 $22.40 Truck Driver Straight/Single Axle $20.45 $21.06 $21.38 $21.70 $22.03 Truck Driver Class G Van or pickup $18.51 $18.51 $18.51 $18.51 $18.51

25 25 Large lift truck op. $19.62 $20.21 $20.51 $20.82 $21.13 Small lift truck op. $19.17 $19.75 $20.05 $20.35 $20.66 Shipper $18.49 $18.86 $19.14 $19.43 $19.72 Saw Feeder $18.12 $18.48 $18.76 $19.04 $19.33 Cut-off Operator $18.12 $18.48 $18.76 $19.04 $19.33 Saw Receiver $18.12 $18.48 $18.76 $19.04 $19.33 Planer/Bandsaw op. $20.07 $20.67 $20.98 $21.29 $21.61 Labourer $17.38 $17.38 $17.38 $17.38 $17.38 (d) The premium rate for the Senior Leadhand shall be $1.60 above his regular hourly rate for all hours worked. Back up Leadhands will receive a premium of $1.20 per hour above their regular hourly rate for up to twenty (20) hours per week. (e) The method of payment of all wages will be direct deposit for all bargaining unit employees during the term of this agreement. The Company agrees to appoint one shipper to work as needed in the west yard. Truck drivers employed by the Company shall be paid at the rate applicable to the job classification to which they are assigned notwithstanding that they might possess a higher classification of license Where an employee is summoned to sit on a jury panel or a jury or is required to give evidence in a criminal proceeding pursuant to a Summons to Witness, the employee shall be paid the difference between his pay at his regular straight time rate for his regular work schedule and the fees received for jury duty, jury panel duty, and/or attendance fees pursuant to the Summons to Witness. Where the employee is not required for the full day on the jury panel, or on a jury, or as a witness, the employee shall attend work prior to court, or return to work from court, as the case may be, to complete as much of his regular shift as possible.

26 Trainees shall be paid the mid-rate between their previous straight time hourly rate and the straight time hourly rate for the new classification. After successfully, completing the training period, trainees will be paid the full straight time hourly rate for the new classification. ARTICLE 26 Seniority (a) The Company agrees to recognize the principle of plantwide seniority so long as that principle does not impair the ability of the Company to carry on its business and to ensure that it has qualified employees to fill specific job categories at all times. The Company recognizes the right of an employee with seniority to avoid being laid off by reverting to a different position occupied by an employee with less seniority, whether such position is less or more qualified, so long as the position, if it requires a particular skill, is one for which the senior employee has actual experience or proven ability. In the case of the senior employee reverting to a less qualified position to avoid being laid off, he will be paid at the rate applicable for that position. Any employee who elects to leave the bargaining unit in accordance with the provisions of Article 2.01 shall continue to maintain his seniority for a period not to exceed three (3) consecutive months. If the employee leaves the bargaining unit for a period longer than three (3) consecutive months, then the employee ceases to be a member of the bargaining unit. It is understood that the employee shall continue to pay regular monthly dues during the three (3) consecutive month period or part therefore An employee will be considered probationary for their first ninety (90) days of work which ninety (90) days of work will be extended by time lost for any reason including sickness, accident or lay-off, and the employee will have no seniority rights during this period. After ninety (90) days of work, his seniority shall date back to the date on which his employment began, provided the employee continued to be a member of the bargaining unit. The termination of a probationary employee shall be deemed to be for just cause, so long as the company did not act arbitrarily, discriminatorily or in bad faith (a) In the event of lay-off, employees within the specific job classifications outlined in Article 25 hereof, shall be laid off by inverse order of seniority provided that there shall be no lay-offs of employees within the bargaining unit until all probationary, part-time and student employees have been laid off. No probationary, part-time or student employees shall be recalled until all members of the bargaining unit have been recalled.