~Motor Coils~and COLLECTIVE 4 AGREEMENT , I. Effective: June 18, 1999 Expiry: June 17, between

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1 I. I Effective: June 18, 1999 Expiry: June 17, 2002 COLLECTIVE 4 AGREEMENT between ~Motor Coils~and COMMUNICATION, ENERGY AND PAPERWORKERS UNION OF CANADA (CEP) LOCAL520, I ' I

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 Article 31 Article 32 Article 33 Article 34 Article 35 Article 36 Article 37 Article 38 Article 39 Schedule "A" Schedule "B" Schedule "C" General Purpose... page Definitions... page Recognition... page 1 Union Security... page 2 No Discrimination I No Harassment..... page 2 Rights and Function of Management..... page 3 No Strike and No Lock Out... page 3 Seniority... page 4 Job Posting... page 5 Movement of Employees... page 6 Layoff and Recall..... page 7 Lead Hand... page 11 Bargaining Unit Work... page 11 Hours of Work... page 11 Overtime... page 13 Paid Holidays... page 13 Paid Vacation... page 14 Rest and Wash-up Periods... page 17 Call-in Pay... page 17 Reporting for Work... page 17 Bereavement Leave... page 17 Jury Duty... page 17 lnsurance... page 18 Sick Leave with Pay... page 1 9 Leave of Absence... page 20 Bulletin Boards... page 21 Safety and Health... page 21 Union Representation... page 21 Grievance Procedure... page 22 Arbitration... page 24 Discharge & Disciplinary Cases... page 25 Plant Rules... page 26 Wages... page 26 Group Insurance Benefits... page 26 Pension... page 26 Dental Plan... page 27 Vision Care Plan... page 27 Benefits Administration... page 27 Duration of Agreement... page 28 Department I Classification I Rates... page 29 Group Insurance Benefits... page 30 Letters of Understanding... page 33

3 ARTICLE 1 GENERAL PURPOSE 1.01 The general purpose of this agreement is to establish a mutually satisfactory relationship between the company and its employees in the bargaining unit described herein, and to establish and maintain satisfactory working conditions and wages for all employees who are subject to the provisions of this agreement The word "employee" shall mean any person employed by the employer in the bargaining unit as defined in article 2.1 herein. The masculine pronoun, whenever used is the agreement, shall also include the feminine, and the singular shall also include the plural. ARTICLE 2 DEFINITIONS 2.01 The bargaining unit is all employees of Motor Coils Mfg. Ltd. In the City of Brockville save and except foremen, all persons above the rank of foreman, and office and sales personnel. "Seniority" shall mean the length of service by an employee in continuous employment of the employer. The word "between" as used in this agreement, when used in connection with a time period, shall not include the commencement or the end of such time period. The word "probation" or "probationary" shall be deemed to refer to a period of testing and observation. ARTICLE 3 RECOGNITION 3.01 The company recognizes the union as the exclusive bargaining agent lor all employees of Motor Coils Mfg. Ltd. in the City of Brockville, save and except foremen, all persons above the rank of foreman, and office and sales personnel No present or newly hired employee shall be excluded from the bargaining unit because of a change of job title or method of payment, unless such change is in conformity with 2.01 above A probationary employee as in this agreement shall not be deemed to be an employee for the purpose of this article.

4 ARTICLE 4 UNION SECURITY 4.01 The Company and the Union agree that any employee who wishes to do so shall be entitled to join the Union. It is understood that neither the Company, nor the Union, nor anyone on their behalf shall discriminate against, interfere with, or in any way harass any employee in order to persuade him to join the Union All employees, including probationary employees, but those persons excluded in Article 3.o1 in this agreement, shall be required to pay dues to the Union in the amount as certified as being the current monthly union dues, enforced by way of a written notice from the Secretary Treasurer of the local Union, and the Company agrees to deduct such dues weekly from the wages ol the employees of the Company, and to do so during the currency of this agreement and to remit same to the Union Office Such moneys, together with detailed lists of such collections, shall be remitted by cheque payable to the National Union - CEP, for local 520, within ten (10) days of end of calendar month in which such deductions are made The Union agrees to defend and hold the Company completely harmless against any and all claims and demands which may be made against it by any person at any time with respect to the deductions of union dues, lines, lees or assessments. ARTICLE 5 - NO DISCRIMINATION I NO HARASSMENT 5.01 The Company and the Union agree that there shall be no discrimination, interference, restraint or coercion exercised by either of them, their members or representatives, with respect to any employee on account of race, creed, colour, age, sex, nationality, ancestry, place of origin, membership or lack of membership, activity or lack of activity in the Union The company and the union recognize that harassment in the workplace is ' not to be tolerated. Harassment is defined in the Human Rights Code as, II "engaging in a course of vexatious (degrading) comment or conduct that is known or ought reasonably to be known to be unwelcome." Every individual has the right to dignity and respect. Verbal or physical intimidation or abuse will not be condoned. il Personal harassment is any behaviour by any person that is directed at and is offensive to an individual or endangers an individual's job, undermines the performance of that job or threatens the economic livelihood of the individual. Sexual harassment is any unwanted attention of a sexual nature such as remarks about appearance or personal life, offensive written or visual actions like graffiti or degrading pictures, physical contact of any kind or 2

5 sexual demands. Racial harassment is any action, whether verbal or physical that expresses or promotes racial hatred in the workplace such as racial slurs or wrilten or visually offensive actions. Any resolution of a harassment complaint must reflect the serious nature of such acts and send a clear signal that they will not be tolerated here. ARTICLE 6 RIGHTS AND FUNCTIONS OF MANAGEMENT 6.01 The Union recognizes that the management of the Company's operations and the direction of the working forces are fixed exclusively in the Company and that the Company has all rights. functions, powers, privileges and authority that it possessed prior to the signing of this agreement with the Union. except only as may be specifically limited by the express provisions of this agreement and, without restricting the generality of the foregoing, the Union acknowledges that it is the exclusive function of I he Company to: a) maintain efficiency, determine the products to be manufactured, methods of manufacture, kinds and locations of tools to be used, processes of manufacture and assembling, engineering and designing of those products and the control of materials and parts to be incorporated in the production process, and to maintain discipline and order. b) limit, change, suspend or cease operations in whole or in part. c) make and enforce and alter from time to time rules and regulations to be observed by employees which shall not be inconsistent with the provisions of this agreement. d) A new employee who is maintaining another paid position must so advise the company at the time of hiring. Any employee of the company who is undertaking or wishes to undertake further paid employment while a full lime employee of the Company must advise the Company in writing of such undertaking. e) hire, promote, demote, transfer, retire, suspend or otherwise discipline or discharge an employee lor just cause; and to increase or decrease working forces, subject to the right of the employee concerned to lodge a grievance in the manner provided for in the agreement, if they believe they have been demoted or transferred in violation of the terms of this agreement, or have been suspended, disciplined or discharged without cause. ARTICLE 7 NO STRIKE AND NO LOCK-OUT 7.01 The Company agrees that there shall be no lock out of its employees during the life of this agreement and the Union agrees that there shall by no strike, 3

6 slow-down and/or other stoppage or interference with work during the life of this agreement. ARTICLE 8 SENIORITY 8.01 Seniority Rights a) Seniority shall be the total length of service of employees dating from their date of hiring. b) Upon completion of the probation period, an employee shall be deemed to have seniority from the date of hire. c) Seniority lists shall be available to the Union every four (4) months and shall include employee's classification, his rate and clock number. The Union shall be notified in writing of any change in an employee's classification. d) Seniority will no longer accumulate when an employee who is unable to work due to injury or illness is no longer eligible for short term disability benefits Recall Seniority a) If an employee is "laid-oft" his seniority will continue through his recall period. b) If an employee is recalled after his recall period has expired, his seniority shall accrue only from the date of recall Termination of Seniority a) An employee shall lose all seniority and shall be conclusively deemed to have quit his employment with the Company if he: i) voluntarily quits the employ of the Company. ii) he is discharged and such discharge is not reversed through the grievance or arbitration procedure herein. iii) he is absent due to lay-off as detailed in Article 11.1 Oa). iv) is absent for three (3) consecutive working days, unless a reason in writing, satisfactory to the Company are given for such absence. v) fails to return to work upon the termination of an authorized leave of absence unless a reason in writing satisfactory to the Company is given for such failure to return to work. vi) utilises a leave of absence for purposes other than those for which the leave of absence was granted, unless a reason in writing, satisfactory to the Company is given. vii) is unable to perform the work normally required in his job classification, or alternative work, and fails to qualify for short term and long term disability benefits. b) An employee who transfers or is re hired to a position outside the 4

7 bargaining unit shall be deemed to forfeit any further claim to seniority in the bargaining unit after a period of three (3) months outside the bargaining unit. If he returns to the bargaining unit within this period, he shall conserve any seniority which he had at the time he left the bargaining unit. c) An employee who accepts a promotion to a management position within the company may do so on a temporary basis of up to one year and maintain his seniority within the bargaining unit, provided that employee continues to pay union dues through that period Probationary Period a) Notwithstanding all other rights under this agreement, a new employee shall be considered a probationary employee as noted in Article 3.03 and shall be deemed to have no seniority for a period of up to (16) weeks from the dale of hiring. The company may, at its sole discretion, discharge a probationary employee at any time prior to the expiration of the probationary period. b) A probationary employee who is laid oft or dismissed before the completion of the probationary period and is subsequently re-called within (90) days shall be given credit for the number of days worked previously toward completion of his probationary period as defined above. c) The dismissal, lay-off or failure to recall after lay-off of a probationary employee shall not be the subject of a grievance. The company agrees that its discretion shall not by used capriciously. ARTICLE 9 JOB POSTING 9.01 Posting Procedure a) Notice of a job vacancy will be posted on the bulletin board for three (3) consecutive working days, showing the department and job reference where the vacancy exists, the shift where the vacancy exists and the rate of pay. A copy of all notices of vacancies shall be furnished to the chainman of the Union. Any employee may apply lor such vacancy. b) The vacancy shall be filled from among the applicants on the basis of their seniority provided such employee has, in comparison with the more junior applicants, equal experience, skill and present ability to perfonm the required work. The job vacancy will be filled by the successful applicant within ten {10) working days of the job posting. c) When there is no applicant for a job vacancy on the day shift or afternoon shift, the company may fill that vacancy by hiring a new employee or by moving the most junior employee in that department from another shift. d) Only the first two vacancies created by the selection of an employee on this basis shall be covered by the posting provisions of this article. 5

8 Subsequent vacancies shall be filled at the Company's discretion by employees qualified according to the criteria established in this article Trial Period a) An employee selected on this basis will be given an opportunity of fulfilling the duties of the new position during a trial period which may not exceed three weeks. If an employee fails to meet the requirements of the job during this three week trial period, or if the employee wishes to relinquish the position at any time during the three week period, he will be returned to his former position and subsequent required moves will be made. In such case, this employee will not be allowed to reapply lor the same job opening for a period of two years in the case of an essential position, and one year in the case of all other positions. b) At the company's discretion, an employee selected on this basis will not be eligible to be promoted to another job lor a period of up to six (6) months from the date of his acceptance of the original promotion. c) Where no employee meets the criteria under this article the Company shall fill the job at it's discretion Training a) Any job related training courses that are scheduled during an employee's normal working hours, shall be considered as a normal work assignment. Any employee not attending shall be considered as on a leave of absence and receive no pay lor that period of time. b) For job related training courses that are scheduled outside normal working hours, attendance shall be on a voluntary basis and anyone attending shall be paid at their regular rate of pay. Payment will be done at the end of the course once the employee has successfully completed the course. ARTICLE 10 MOVEMENT OF EMPLOYEES Temporary Moves ~ When one department in the plant is slow and another is busy, management may move employees from the slow department'/);. to the busy department 'B'. Firstly, all employees in department 'N will be given the opportunity to volunteer to be moved to the busy department 'B'. Failing this, management may move people from the slow department 'N to the busy department 'B' by seniority, the most junior employee first. An employee moved from department 'A' to department 'B' will be given up 6

9 to live (5) working days to familiarize himseff with the work and to demonstrate the aptitude required lor the job. When department 'ft!. becomes busy again, employees who had been moved out will be returned as follows. Firstly, displaced employees will be asked to volunteer to return to department 'N, with the most senior employee given preference. It no displaced employees volunteer then the most junior displaced employee will be returned to department 'A', then the next most junior, etc. until all the originally displaced employees are returned to department 'A'. II there is then an opening in department 'B', the job will be posted and all employees will have the opportunity to bid on that opening as per the contract. If an employee 'X' is in a temporary position for a length of time equivalent to the period of his recall rights, then that job will be posted. II no other employee fills that position subsequent to the posting, then employee 'X' will be considered to be reclassified to that position. II another employee does meet the criteria established to fill the position, then employee 'X' will be returned to department 'A' and if there is still insufficient work in that department, may be subject to 'lay-off.' Temporary Moves I Essential Positions Due to a change in work-load but prior to a layoff, an employee in an essential position may be moved to another non-essential position in the plant in accordance with the criteria detailed above (10.01 ). In the event of a layoff affecting either the department of the essential position, or the department in which he is working, that employee will then be returned to his essential position Temporary Moves I Modified Work The Company and the Union are anxious to expedite the return to work of any employee recovering from illness or injury. In such circumstances modified work may be made available whenever and wherever possible throughout the plant on a temporary basis. When such a temporary move exceeds 90 days, the Company and the Union will review together the circumstances that justify the continuation of the modified work placement. Such placement does not fall under the provisions of Article 9 of this agreement. ARTICLE 11 LAYOFF AND RECALL Declaration of Surplus In the event of a layoff, the company will declare surplus those employees in the effected department(s). In compliance with the intent of the plant wide provision of seniority, the most junior employee(s) in the plant may be laid off in accordance with article and

10 11.02 Plant Wide Seniority An employee who has been displaced or declared surplus in his present job classification shall be entitled to exercise seniority as detailed in Article He may accept the layoff or request to be placed in a job vacated by a laid off employee, providing that the declared surplus employee has the ability and qualifications normally required for that job Notice of Layoff In all layoffs, the company shall give employees with less than one (1) year seniority, but not probationary employees, five (5) working days notice or five (5) days pay at the regular straight time rate in lieu of such notice. Employees with more than one (1) year seniority shall be given ten (1 0) working days notice or ten (1 0) days pay at regular straight time rates in lieu of notice. The company will advise the union committee in confidence of the layoff, one (1) working day before the actual layoff notice is given to the employee. This provision will not apply to a temporary layoff as defined below Temporary Lay-off A lay-off of five (5) working days or less is temporary and shall be governed strictly by seniority in the job classification where there is lack of work. It is understood that the provision of Article does not apply to a temporary layoff Layoff a) If a reduction in the work force is necessary a declaration of surplus will be made as per article Probationary employees shall be laid off first. b) If a further reduction is necessary the least senior employee plant wide shall be laid off first and called back last, provided that employee is not employed in an essential position. An essential position shall be deemed as: - Tapers in the Field Coil Department - Winders in the armature department - Any other position that requires unique skills as agreed upon When a laid off employee has more seniority than employees retained in an essential position, then those essential employees who have been retained after a layoff may pertorm only duties associated with their essential position. c) An employee(s) declared surplus must notify the company, as per Article d), of which job left vacant by the layoff of the most junior employee(s) in the plant they wish to undertake. Job selection will proceed by seniority as in Article 10. An employee declared surplus and undertaking a job left vacant by the layoff of a junior employee in the plant 8

11 will be given up to five (5) working days to familiarize himself with the work and to demonstrate the aptitude required for that job. Such familiarization period can be done during the Notice of Layoff period detailed in article If that employee is unable to demonstrate such aptitude in the job he has selected in the specified time frame, he may be subject to layoff. d) From date of declaration of surplus, the effected employee(s) have three (3) working days to notify the company in writing, on the form provided by lhe company, of which job left vacant by the layoff of the most junior employee(s) in the plant they wish to undertake. If such notice is not received, it is understood that the employee declared surplus is therefore to be laid off Designated Union members Top seniority in the plant for layoff purposes will be granted to no more than two (2) designated union members Re-Staffing When a department that has been affected by a layoff requires re-staffing, the surplus employees who have undertaken temporary alternative work throughout the plant will be returned to their previous positions as in Article 10, according to their seniority, the most senior employee first. Vacancies created by this process will be posted and filled as detailed below Job Openings following a layoff Before recalling any employee who is laid off to a job which becomes available the company will post the applicable job opening(s) in accordance with Article 9 of the collective agreement. Any employee within the plant may apply for and fill such opening. Applicants will, by seniority, be given a reasonable length of time to demonstrate the ability to do the job satisfactorily until the position is filled. When no employees within the plant apply lor such opening, or no employee within the plant is able to demonstrate the ability to do the job satisfactorily, recall of laid off employees will proceed according to article Job Opening(s) in an essential position following a layoff When an opening in an essential position occurs after a layoff, the company will post the applicable job opening in accordance with Article 9 ol the collective agreement. 9

12 Employees who are not laid off and apply lor the opening in the essential position will be given a trial period of up to twenty (20) working days to meet the requirements of the job. After ten (10) working days the employee's progress will be evaluated by a trainer, a management representative and a union representative. The majority of this evaluation group will determine at that point whether the candidate is demonstrating sufficient progress to warrant the continuation of the trial period through the twenty (20) working day time frame. Guidelines will be established and agreed to by the company and the union that will be used in the process of evaluation. The company may recall employees laid off from essential positions directly into the essential position jobs ahead of more senior laid off employees with the understanding that they may be displaced by any more senior employee who is not on layoff, who has applied for the job opening and who successfully qualifies for the position during the trial period detailed above Recall a) An employee other than a probationary employee who is laid off shall have recall rights from the date of his layoff according to the following Length of Service Recall Rights Less than 3 years 6 months 3 years 5 years 9 months more than 5 years 12 months b) The company shall recall laid-off employees by seniority. Employees who are qualified and willing to do a job which becomes available and who can demonstrate in a reasonable length of time the ability to do the job satisfactorily, shall be considered for such jobs before hiring any new employees. An employee who is not qualified or not willing to undertake available work in a department other than that from which he has been laid off may refuse such recall but then may not be recalled again until there is available work in the department from which he has been laid off. An employee who is willing to undertake available work in a department other than that from which he has been laid off, but does not demonstrate in a reasonable length of time the ability to do the job satisfactorily, will be returned to lay off status. In each case above, the recall rights of the employee shall be calculated as per Article a), from the original date of lay off. Recall shall be made by registered mail to the employee's last address on record with the company. It shall be the employee's responsibility to 10

13 supply the company with his correct and current address and any changes that occur. The company's obligation to recall under this clause shall be fulfilled if: i) The employee refuses recall ii) The employee fails to respond to his recall within five (5) working days from the date his recall letter is registered at the post office iii) His recall letter is returned because he failed to file a correct address with the company. ARTICLE 12 LEAD HAND In the case of a "Working Lead Hand", the Company shall promote an employee who is best qualified to manage the work area. His duties in addition to his daily production activities, shall be to direct the work force, allot work throughout the department, arrange material flow and ensure that required training is provided. He shall keep track of on-going production to confirm that required production schedules are met. Whatever problems he finds that impede normal production in his department, he shall attempt to rectify to the best of his ability. A 'Working Lead Hand' is still a bargaining unit member. He will not have the authority to discipline, hire or fire another employee, which remains the sole responsibility of company management Selection of a "Working Lead Hand". In this matter, seniority will be a consideration, but will not be the major criteria. The Company will evaluate the performance of the "Lead Hand" periodically and at least semi-annually. Should management decide that a "Lead Hand" is not directing the work force according to the above noted guidelines, the "Lead Hand" may be returned to his previous job classification. If conditions or volume of work should fluctuate sufficiently, a "Lead Hand" may be returned to available work in his department. ARTICLE 13 BARGAINING UNIT WORK The company agrees that it will not permit any person not within the bargaining unit to perform the work or operation normally done by an employee within the bargaining unit, except for the purpose of instruction, experimental work, to provide a relief period for an employee upon request, or in other emergencies. The above exceptions shall not be used to deprive any employee of work time. ARTICLE 14 HOURS OF WORK a) The normal work week for all day shift employees covered by this 11

14 Agreement shall be forty (40) hours, Monday to Friday, not to exceed eight (B) hours in one day. b) The normal work week for all afternoon shift employees covered by this Agreement shall be forty (40) hours, Monday to Friday, not to exceed eight (B) hours in any one day a) The standard starting and stopping time for day workers will be 7:30a.m. to 4:00 p.m. with a (30) minute period for lunch which is unpaid. b) The standard starting and stopping time for afternoon workers will be 4:00 p.m. to 12:30 a.m. with a thirty (30) minute period for dinner which is unpaid. c) An employee reporting off or late must so advise the plant manager, a supervisor or the office staff within ninety (90) minutes from the starting time of his shift This Article is not be read or construed as a guarantee to provide work for any period whatsoever A shift premium of.35/hour will be added to all Department Rates for employees working afternoon shift Working conditions related to the implementation of additional shifts will be negotiated at such time that the situation arises Summer hours Summer hours will begin the first full week in June and end the last week before Labour Day. When the company is operating just a day shift, summer hours will be 7:00AM to 4:30PM Mon. Tues., Wed., (no afternoon wash-up) 7:30AM to 4:00 PM Thurs., 7:30AM to 12:00 noon Friday -When the company is operating a day shift and an afternoon shift, summer hours will be Day Shift 7:00 AM to 4:00 PM Monday to Thursday 7:00AMto 1:00PM Friday Break10:00AMto 10:15AM No Lunch Afternoon Shift 4:00 PM to 1:30AM Monday to Thursday 1:00PM to 5:00PM Friday Break 3:00PM to 3:15PM No Dinner Dominion Day and Civic Holiday will be paid as eight (B) hour days An employee wishing to leave early must advise the plant manager, a supervisor or the office staff of the reason why he wishes to leave early and if and when he will return. The employee must sign out on the employee 12

15 record (sign out book) in the plant manager's office and then punch out prior to leaving the plant. A request to leave the plant for a reasonable cause will not be refused. ARTICLE 15 OVERTIME All time worked in excess of eight hours in a day shall be regarded as overtime All overtime not exceeding four (4) hours in a day, and up to eight (B) hours on Saturdays shall be paid for at time and one-half. Overtime exceeding four (4) hours in a day and eight (8) on a Saturday, and overtime worked on Sundays shall be paid lor at double time. The standard starting time lor overtime work on Saturday and Sunday will be 7:30AM. Overtime work on Saturday and Sunday will be scheduled to be lour (4) hours as a minimum lime and one-hall shall mean one and one-hall times (1 1/2 x) the employee's hourly rate; and double time shall mean two times (2 x) the employee's hourly rate Providing forty-eight (48) hours prior notice is given to the Company, overtime will not be worked on the day, 1/2 hour before or during a Union Meeting. The Union agrees that the Company will be constrained by this obligation for six (6) Union meetings in a year. If the Union schedules more than six (6) Union meetings in a year, limitations on overtime scheduling will be at the Company's discretion. Afternoon shift employees who so wish will be allowed to take up to one and a half (1 1/2) hours off without pay to attend such Union meetings Where possible, overtime opportunities shall be distributed equally among the employees normally doing the work The Union and the employees shall co-operate with the Company in reasonable overtime requests. The Company recognizes, however, that overtime work is not compulsory and that there shall be no reprisals against an employee who refuses overtime. ARTICLE 16 - PAID HOLIDAYS Under the conditions listed below, employees will be paid for the following holidays: News Years Day Civic Holiday Good Friday Thanksgiving Day Victoria Day Day before Christmas Dominion Day Christmas Day Labor Day Boxing Day 13

16 One additional fixed holiday, to be determined by mutual consent Should any of the holidays enumerated in above fall on a Saturday or Sunday, the holiday shall be the Monday following or a day designated by mutual consent of the Union representative and Company management An employee who is required to work on any of the above listed holidays will be paid at twice (2x) his hourly rate for hours worked in addition to his holiday pay Holiday payment shall not be made if an employee does not work the day preceding, or the day succeeding the holiday, unless absence is caused by: a) a death in the immediate family b) jury duty c) illness as verified by a physician's written opinion, not exceeding the recall rights as defined elsewhere in this collective agreement d) if he has obtained prior written permission to be absent, that specifies that holiday payment will be made Pay for the above holidays shall be made on the basis of the employee's regular hourly daily rate In the case of sequential holidays as agreed upon in the collective agreement, the employee shall not lose more than one (1) day holiday pay if he is absent from work either the working day preceding or the working day succeeding the said holidays. The employee shall not lose more than two (2) days holiday pay if he is absent from work both the working day preceding and the working day succeeding the said holidays. ARTICLE 17 - PAID VACATION Vacation pay and entitlement will be calculated according to the anniversary date of the employee's hiring. When vacation pay is to be calculated as a percentage of wages, those wages shall be the earnings from the previous calendar year and as described in below. Employees shall be granted vacation with pay on the following basis. a) Each employee who has been employed for less than one (1) year shall receive one (1) day of vacation with pay for each complete month of service up to a maximum vacation entitlement of ten (10} days. An employee who terminates before completing one year of service receives 4% vacation pay calculated from the first day employed. b) Each employee who has accumulated service of more than one (1) year but less than five (5) years shall receive two weeks vacation with two weeks vacation pay. The vacation pay must be at least 4% of the total wages of the preceding year. c) Each employee who has accumulated service of more than five (5) years 14

17 but less than eleven ( 11) years shall receive three weeks vacation with three weeks vacation pay. The vacation pay must be at least 4% of the total ~ages of the preceding vacation year plus one week's pay. d) Each employee who has accumulated service of more than eleven (11) years shall receive four (4) weeks vacation with four weeks vacation pay. The vacation pay must be at least 4% of the total wages of the preceding Vacation year plus two week's pay Notwithstanding a), b), c), d), above, An employee with five (5) years of service or more, excluding such employees who were on LTD or lay off during the preceding vacation year, shall not receive less than forty (40) hours pay at his regular straight time rate, for each week of vacation entitlement. Any employee who has worked at least 1,300 hours during the preceding vacation year shall receive not less than forty ( 40) hours pay, at his regular straight time rate, for each week of vacation entitlement. Any other employee who has worked less than 1,300 hours during the preceding vacation year shall receive vacation pay as follows. Absence due to maternity leave or seasonal kit line lay off will not be considered as time not worked for the purpose of this article. a) Each employee who has accumulated service of more than one (1) year but less than five (5) shall receive two (2) weeks vacation with vacation pay of 4% of the preceding year's wages. b) Each employee who has accumulated service of more than five (5) year but less than eleven (11) years shall receive three (3) weeks vacation with vacation pay of 6% of the preceding year's wages. c) Each employee who has accumulated service of more than eleven ( 11) years shall receive lour (4) weeks vacation with vacation pay of B% of the preceding year's wages Wages for vacation purposes include all money received by the employee from the employer but does not include previously paid vacation pay For every statutory holiday which occurs during the employee's vacation period, the employee shall be entitled to an additional day off with pay for such statutory holiday as provided in Article such additional day(s) off are worked at the employer's request, they shall be paid at the premium rate applicable to holidays worked in accordance with Article II an employee leaves the service of the company, prior to the actual vacation time, he shall be paid the amount due him in lieu of vacation, calculated to the date of leaving such service. Such payment will be due as of the next normal pay date In the event of the death of an employee who would otherwise have been 15

18 eligible for vacation payment, the vacation pay accruing to him shall be paid to his estate a) The Company agrees to notify the Union representatives and post on the bulletin board, the two weeks plant shutdown for vacation purposes for that year, no later than April 30. b) At the beginning of each calendar year, the Company shall post a vacation schedule showing an employee's vacation entitlement. Those employees with more vacation time than the scheduled shutdown will have until February 15th to submit to the Plant Manager, on a form provided by the Company, their preferred weeks for their extra vacation time. Vacation shall then be allotted by seniority within a department. Vacation time requested after February 15th will be granted on a first come, first served basis. By March 1st, a complete vacation schedule will be finalized showing allotted vacation dates. Once established, such dates shall not thereafter be changed except with the consent of the employee concerned. c) Should the Company decide not to schedule a plant shutdown for vacation that year, then vacation schedules shall be concluded as follows: i) Employees shall have until May 15th, to submit to the Plant Manager, on a form provided by the Company, their preferred weeks for their vacation time. Vacation shall be allotted by seniority within each department. Vacation time requested after May 15th will be granted on a first come, first served basis. ii) By May 30th, a complete vacation schedule will be finalized. Once established, such dates shall not thereafter be changed except with the consent of the employee concerned. d) Four ( 4) employees per department shall be allowed off on vacation in any given week. e) Each employee must use all his vacation entitlements within the calendar year.,. I,. \ 16

19 ARTICLE 18 REST AND WASH UP PERIODS Employees shall be allowed a fifteen (15) minute rest period from 10:00 a.m. 10:15 a.m. and 2:30p.m. 2:45p.m. Afternoon shift employees shall be allowed a fifteen (15) minute rest period from 6:30p.m. 6:45p.m. and 11:00 p.m. 11:15 p.m Employees shall be allowed one (1) five (5) minute wash-up period at 11:55 a.m. and 3:55p.m. Afternoon shift employees shall be allowed one (1) five (5) minute wash-up period at 8:25p.m. and 12:25 a.m.. ARTICLE 19 - CALL-IN PAY An employee called back to work after he has completed his assigned day's work and has not yet begun the following assigned day's work shall be paid on an overtime basis for actual time worked or shall be guaranteed four (4) hours pay at regular rate, whichever is the greater. ARTICLE 20 - REPORTING FOR WORK An employee reporting for work at the customary time, who has not been instructed not to work before the completion of his previous worked day, shall be given four (4) hours pay in lieu of said work The Company shall not be liable for pay in lieu of work in a situation where circumstances beyond the employer's control, "Acts of God" do not permit normal operations. ARTICLE 21 BEREAVEMENT LEAVE An employee absent from work due to the death of his spouse, common-law spouse, child, parent, parent-in-law, grandparents, brother or sister will be paid up to a maximum of (3) days bereavement leave pay for time not worked during the (3) working days before or after the funeral In the event of death of an employee's aunt, uncle, sister-in-law, brother-inlaw, son-in-law, daughter-in-law or when acting as a pallbearer, an employee who wishes to attend the funeral, will be paid his regular rate of pay for the day of the funeral if it falls on a scheduled work day and he attends the funeral. ARTICLE 22 JURY DUTY An employee called for jury duty, shall be paid the difference between the pay he receives for jury duty or acting as a crown witness, and what he would have earned from the Company, except for such absence from work, for the equivalent of eight (8) hours pay at his regular rate for each such day 17

20 of absence. Differential payments shall be made upon production of jury notice and the receipt lor payment received therefrom. ARTICLE 23 - INSURANCE The Company agrees to pay 100% of the cost of the Employee's Group Insurance Plan presently in effect, for persons actively employed (not Probationary employees) and not on a leave of absence or on lay-off. The Company agrees to pay 100% of the cost of the employee's Group Insurance Plan presently in effect for employee's on pregnancy leave, lor the period detailed in Article provided the employee returns to her work with the Company for a period of six (6) months. An employee who fails to return to work at the end of the pregnancy leave period will be responsible to reimburse the Company for Group Insurance premiums paid through the period All benefits covered by the Employee's Group Insurance Plan at the signing of the Agreement shall be part of this agreement. In order to qualify for benefits under the Employee's Insurance Plan, a physician's report reviewing the personal consultation shall be required. Under no circumstances will a physician's note compiled as a result of a telephone consultation be accepted for entitlement to these benefits In the event that the Government of Canada or the Province of Ontario should enact legislation which affects the benefits of the Employee's Group Insurance Plan, the parties hereto shall meet to negotiate any required changes in the Employee's Group Insurance Plan. Such meetings shall take place not later than thirty (30) days subsequent to the enactment of the legislation The Company agrees to pay the employee for the first day's pay, or part thereof, lost due to a compensable accident, or work related injury that requires hospital treatment. A doctor's note will be required to substantiate that the employee is unable to return to work. The Company will not reimburse the employee tor any period tor which the W.C.B. does not or will compensate the employee. All work related accidents and/or injuries must be reported within (2) working days to the office stall for required documentation. Accidents or injuries not reported within (2) working days to the office staff will be processed as not work related through our group insurance plan Any reduction in the employer's share of the U.I.C. premium will be applied to reduce the weekly indemnity premium of the group insurance policy The Company agrees to provide one copy of the master group insurance policy and updates to the Union. 18

21 ARTICLE 24 SICK LEAVE WITH PAY Non-cumulative sick leave credits (SLC) will accrue as follows: a) for employees with less then live 151 years of seniority at the rate of two (2) hours SLC per month. b) for employees with more then five (5) years of seniority at the rate of four (4) hours SLC per month c) Accrual of sick leave credits for a month where the employee has been on leave of absence, WSIB, STD or layoff will accrue as follows 1 week absence 1 1/2 hr. SLC 3 hrs. SLC 2 weeks absence 1 hr. " 2 h rs. " 3 weeks absence 1/2 hr. 1 hrs. more than 3 weeks 0 " 0 hrs. d) Sick leave credits shall be earned in the previous calendar year and utilized if needed in the present calendar year. Therefore i.e., on December 31, 1999, all credits earned in 1999 shall be the allotment an employee will have for the year New employees must work until January 1, of the following year of being hired to qualify No sick leave credit will be allowed for any calendar month in which the employee has been late three (3) times or more A full day lost by the employee due to sickness or sickness of spouse and/or children, will be paid by the employer, up to the limit of the sick leave credit accrued by the employee. More than one (1) full day lost by the employee due to sickness or sickness of spouse and/or children, verified by a physician's written opinion after a personal medical consullation that is submitted to the plant manager immediately upon the employee's return to work, will be paid by the employer, up to the limit of the sick leave credit accrued by the employee. The company will pay for the required written physician's opinion if the charge is not covered by OHIP. A receipt will be required Notwithstanding the other provisions of this Article, an employee who is absent less than three (3) hours for medical/health appointments will be paid by the employer from his accumulated sick leave credits. However, should an employee be sent home by management due to sickness, he/she shall be entitled to the sick leave credit accrued by the employee Incentive Program Per above article credits, the following incentive program shall be in effect. (for employees who have worked a full calendar year after completing the probation period) 19

22 Sick leave Credits Art a) Art b) Minimum hours accrued none used 12 hour pay 24 hours pay 12 hours or less used 6 hours pay 12 hours pay more than 12 hours 0 0 The incentive program described shall be payable by March 15th of the year following. ARTICLE 25 - LEAVE OF ABSENCE Requests for leaves of absence shall be made in writing within three (3) weeks prior to the commencement of the leave and the Company shall reply to such request within five (5) days of their submission. The Company may or may not grant such leave of absence without pay lor personal reasons when so requested and such leave shall not be unreasonab~ denied. When a leave of absence is approved to extend beyond three (3) days, such approval shall be in writing. Such leave of absence shall not be counted as time worked for the purpose of seniority with the Company. When such leave is granted, it shall under no circumstances be used to engage in another gainful operation. The violation of the Clause shall result in immediate discharge Up to two (2) employees, with a maximum of (1) one employee per department, may be elected to attend the Union Business Meetings and shall be granted such leave of absence and have their leave of absence counted as time worked for the purpose of seniority with the Company up to a maximum of fifteen (15) days per year per individual When requested to do so by the Union, the Company agrees to grant leave of absence to an employee to serve as business agent or other full time work with the Union lor a maximum period of one ( 1) year. Such leave may be extended by the Company on notice of thirty (30) days prior to the expiry date ot the leave. Continuity of service and seniority rights shall accumulate during this period Pregnancy leave: An employee is entitled to twenty-four (24) weeks of unpaid leave of absence, where she been employed by the Company for at least twelve ( 12) months immediately preceding the estimated date of delivery. This leave may commence at any time up to six (6) weeks prior to the estimated date of delivery. The employee must give two (2) weeks notice in writing together with a physician's certificate estimating the date of delivery to the employer, when applying for leave of absence due to pregnancy. The employee may request to work in the plant up to two (2) weeks prior to her anticipated delivery date and such a request may be approved by the Company provided a waiver releasing the employer from liability through the 20

23 period is undertaken by the employee Upon the return to work of an employee who has been on an authorized leave of absence because of illness of injury, he will return to his former classification if still available, otherwise he will be offered, in accordance with his seniority and skill, other available work in accordance with this Article. ARTICLE 26 BULLETIN BOARDS The Company agrees that if will provide, for the purpose of the Union, a bulletin board on the premises and that the Union may use such space for the posting of notices pertaining to Union business but that all such notices must be signed by a proper official of the Union and submitted to the Company for approval before being posted. The Company agrees that approval of the posting of notices shall not be unreasonably withheld. ARTICLE 27 SAFETY AND HEALTH The Company will make reasonable provisions for the safety and health of its employees during the hours of their employment The Company and the Union agree to exert joint efforts to maintain required standards of safety, health, and good housekeeping in the plant in order to prevent industrial injury The Company and the Union agree to conform to all of the provisions of "The Occupational Health and Safety Act 1998" and to exert joint efforts to prevent industrial injury or illness The Company shall post and keep posted the names and work locations of the safety committee members as well as the committee meeting minutes in a conspicuous place where they are most likely to come to the attention of all employees Protective devices and special wearing apparel will be provided when required, according to the guidelines of ''The Occupational Health and Safety Act" and at the Company's discretion. Replacement of used or wom protective devices or special apparel shall be made when the original items are returned for inspection and qualification Upon presentation of a receipt or invoice, the Company agrees to reimburse to a employee beyond the probation period, up to a maximum of one hundred ($100) dollars lor the purchase of safety shoes once every a year The Company agrees to purchase prescription safety glasses from its supplier and to its specifications for employees beyond the probation period who require such glasses, once every two years. ARTICLE 28 UNION REPRESENTATION The Union agrees to furnish the Company with a list of names of the 21

24 employees who have been elected or appointed Union officers, committee men, and stewards authorised to represent the Union, and the Union will keep this list up-to-date Stewards, members of committees and Union Officers will be expected to perform their regular duties and will not leave or otherwise interrupt their regular duties to attend to Union business without first obtaining the permission of the foreman or his designated representative, which permission shall not be unreasonably denied, and, if authorized by agreement to take up Union business in a section other than his own, he shall first report to the foreman of that section. The Union further agrees that there shall be no solicitation of members or other union activities on the premises of the Company or during the work hours of employees. It is understood that no meetings of the Union or its members will be held on the premises of the Company at any time without the prior written approval of the Company The Company agrees to pay the Negotiating Committee of up to (2) Union designates a fee of up to $ per person, in lieu of regularly hourly pay, for the purpose of negotiations and conciliation hearings The Company agrees to pay up to two (2) Union designates up to a maximum of four (4) regular hours pay for the purpose of handling each arbitration case The Company agrees to furnish the Union with a list of the names of foremen and supeivisory personnel with whom the. Union may have transactions in the administration of this agreement, and will keep this list up to date. ARTICLE 29 GRIEVANCE PROCEDURE It is the mutual desire of the parties hereto that complaints and grievances of the employees shall be adjusted as quickly as possible It is generally understood that an employee having a complaint shall first give his foreman an opportunity of adjusting the condition causing the complaint before lodging a formal grievance. A compliant or grievance relating to conditions or operations in a specific work area must be presented by the employee affected in that area. The employee may request the assistance of his steward when taking up a complaint with his foreman. A grievance is defined as an alleged violation or misinterpretation of the collective agreement. Employees grievances shall be settled in the following manner and all time limits specified in this article may only be extended by mutual consent of the parties If an employee has a complaint or a question involving the interpretation, or administration of the collective agreement he wishes to discuss with the 22

25 Company, he shall take the matter up with his immediate supervisor, within live (5) working days alter the circumstances giving rise to the complaint have become known to him. He may be accompanied by his steward if he requests such assistance. Failing settlement, this matter may be taken up as a grievance within two (2) working days following the advice of the supervisor's decision. (a) Step No. 1 The employee, steward or chief steward may submit a written grievance to the plant manager setting out the article of the collective agreement to which the grievance refers and the adjustment sought. All facts are to be discussed up to and including Step No. 2 and, thereafter, the parties mutually agree to advise each other of any new facts that arise related to the grievance in advance of an arbitration hearing. Alter such discussion as is necessary the plant manager shall state his decision in writing within two (2) working days of the date that the grievance was submitted to him. Failing settlement, then: {b) Step No 2 lithe Plant Manager fails to give his answer to the grievance within the time limits set forth in Step 1, or if the answer is unsatisfactory, the matter of the grievance may be appealed in writing within five (5) working days as Step 2 by a letter addressed by the Chairman of the Union to the Executive vicepresident of the Company requesting a meeting with him and/or his representative(s) to further deal with the grievance. The Executive vice president shall set a date for such a meeting within live (5) working days of the Union Chairman's request and confirm it in writing to the Union Chairman. At this step, the National Representative of the Union may be present at the meeting. Within five (5) working days of this meeting, the Executive vicepresident shall give his answer, to the grievance, in writing, to the Chairman of the Union. Should a satisfactory settlement not be reached in Step No. 2 of the grievance procedure, then at the request of either party, the grievance may be referred to the arbitration procedure as outlined in this agreement within twenty (20) working days after the decision complained of. In determining the limits under this article, Sundays and statutory holidays shall be excluded. If the time limits or any mutually agreed upon extensions are not observed by the Union, the grievance shall be considered abandoned and may not be reopened. If the time limits or any mutually agreed upon extensions are not observed by the Company, the grievance will be considered advanced to the next stage of the grievance procedure including arbitration. It is understood that the Company may submit to the Union, any complaint with respect to the conduct of union officers, stewards or the employee, generally or to the application or interpretation of any provision of this agreement. The 23

26 complaint will first be presented to the Chairman of the local or a designated representative of the local and a meeting shall be held within seven (7) working days with Union representatives if requested by the employer In the case of a grievance over the dismissal of suspension of an employee, all preliminary steps of the Grievance Procedure prior to Step 2 will be accelerated The Union recognizes Stewards, members of committees and Union Officers have regular duties to pertorm as employees of the Company The Company acknowledges the right of the Union to select one (1) Steward to assist the employee in presenting their grievance to the representative of the Company. ARTICLE 30 - ARBITRATION When either party requests that a grievance be submitted to arbitration, they shall make such requests in writing by registered mail addressed to the Chairman of the local or in the case of employee grievances, to the general manager of the Company, and at the same time, nominate an arbitrator; within five (5) thereafter the other party shall nominate an arbitrator. The two arbitrators so nominated shall meet immediately, and if within five (5) working days, fail to settle the grievance, they shall attempt to select by agreement a third person to be a member and chairman of the board of arbitration. Should the two (2) nominees so selected be unable to agree upon a chairman, either one (1) or both of them may request the Ontario Labour Management Arbnration Commission to appoint a chairman and a third member of such board of arbitration. In the event of default by either party in nominating its representatives to the arbitration board, the other party may apply to the Minister of Labour for the Province of Ontario, who shall have power to make such appointment. No person may be appointed as an arbitrator who has been involved in an attempt to negotiate or settle a grievance or who has been involved in a negotiation of this agreement The Board of Arbitration shall not have jurisdiction to amend, modify, ignore or add to any of the provisions of this agreement, or to substitute any new provisions in lieu thereof, nor to give any decision inconsistent with the terms and provisions of this agreement The decision made by the majority of the Board of Arbitration shall be final and binding upon the parties hereto and any employee or employees affected by it, but if there is no majority, the decision of the chairman shall govern. Proceedings before the Board of Arbitration shall be expedited At any stage of the grievance procedure, including arbitration, the parties may have the assistance of the employee or employees concerned as witnesses. 24

27 30.05 The parties may mutually agree that a single arbitrator shall be appointed in place of an arbitration board. In the event that the parties agree on a single arbitrator, the arbitrator shall have the same powers as a board of arbitration under this agreement, and the parties will jointly bear the expense of the arbitrator. Each of the parties hereto shall bear the expense of the arbitrator appointed by it, and the parties will jointly bear the expense of the chairman of the arbitration board, if any No matter may be submitted to arbitrauon which has not been properly carried through all previous steps of the grievance procedure. ARTICLE 31 - DISCHARGE & DISCIPLINARY CASES It is agreed that the Company shall provide written notice of discharge of an employee to a Union representative either immediately preceding or immediately following the discharge of the said employee In the event that the Company initiates disciplinary action against an employee who has completed his probationary period which results in the discharge of said employee, such disciplinary action shall be confirmed in writing together with the cause of disciplinary action by letter to the employee involved setting out the action taken and the penalty imposed. a) When an employee is to receive a written disciplinary notice, such notice will be delivered to him in the presence of a steward whenever possible. b) Written warnings against an employee not confirming a suspension shall be removed from the employee's record after a twelve (12) month period from the date of issuance, and providing no other written warnings have been issued to the employee during that period A claim by a permanent employee that he has been discharged without cause from his employment shall be treated as a grievance if a written statement of such grievance signed by the employee is lodged with the general manager within five (5) days excluding Sundays and statutory holidays, alter the employee is discharged by the Company. All preliminary steps of the grievance procedure prior to Step No. 2 will be accelerated in such cases When an employee has been dismissed without notice he shall have the right to interview his steward for a reasonable period of time before vacating the premises All preliminary steps of the Grievance Procedure prior to Step 2 will be accelerated in such a discharge or suspension case Any discharge or suspension grievance may be settled by confirming the action of management or by an arrangement which, in the opinion of both parties or an Arbitration Board, is just and equitable. 25

28 ARTICLE 32 - PLANT RULES The Company will, from time to time, make rules which will be binding on the employees, for the efficient and safe operation of the plant, and post these rules on the bulletin board. ARTICLE 33 - WAGES The schedule of departmental classification and wage rates (Schedule "A") attached hereto is made a part of this agreement and shall be effective as specified Every employee shall be classified to the Job Classirication established by the Company and shall be notified in writing with a copy to the Union, whenever that classification is changed The Company reseives the right to establish new classifications and set their rates The employer may elect to start 'Probationary' employees at seventy-five cents (.75) below the class rate. A 'Probationary' employee shall be brought to the 'New Hire' rate, fifty cents (.50) below the class rate, at the completion of the sixteen (16) week probation period. A 'New Hire' employee shall be brought to the class rate one (1) year from the date of hiring. ARTICLE 34 - GROUP INSURANCE BENEFITS Group Insurance benefits are set out in Schedule "8" which is attached hereto and forms part of this Agreement. The Group Insurance Plan is fully paid by the Company. Employee benefits detailed therein include: a) life and dependent life insurance: b) accidental death and dismemberment insurance; c) weekly income insurance; d) supplemental hospital room and board; e) extended care benefits ; f) long term disability. ARTICLE 35 PENSION At Jan. 1, 1993, the Company agrees to pay.20 cents per hours worked by an employee to the CEP Multi-Employer Pension Plan. Effective Jan. 1, 2000, the Company agrees to pay.35 cents per hours worked by an employee to the CEP Multi-Employer Pension Plan. Effective Jan. 1, 2001, the Company agrees to pay.40 cents per hours worked by the employee to the CEP Multi-Employer Pension Plan. Effective Jan. 1, 2002, the Company agrees to pay.45 cents per hours worked by the employee to the CEP Multi-Employer Pension Plan. 26

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