MORRISON LAMOTHE INC. 141 Finchdene Square and 825 Middlefield Road Business Units (hereinafter referred to as the "Company") -AND-

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1 March 12, 2012 to November 30, 2016 BETWEEN: MORRISON LAMOTHE INC. 141 Finchdene Square and 825 Middlefield Road Business Units (hereinafter referred to as the "Company") -AND- BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL UNION and its LOCAL 264 (hereinafter referred to as the "Union")

2 INDEX ARTICLE 1 - PURPOSE ARTICLE 2 - RECOGNITION ARTICLE 3- MANAGEMENT RIGHTS ARTICLE 4- UNION SECURITY ARTICLE 5- UNION REPRESENTATION ARTICLE 6- LABOUR MANAGEMENT COMMITTEE ARTICLE 7- NO STRIKES OR LOCKOUTS ARTICLE 8- GRIEVANCE PROCEDURE ARTICLE 9- ARBITRATION PROCEDURE ARTICLE 10- TESTING ARTICLE 11 -HEALTH AND SAFETY ARTICLE 12- SENIORITY ARTICLE 13- SCHEDULING ARTICLE 14- HOURS OF WORK AND OVERTIME ARTICLE 15- LEAVES OF ASENCE ARTICLE 16 - PREGNANCY LEAVE ARTICLE 17- JURY AND WITNESS DUTY ARTICLE 18- BULLETIN BOARDS ARTICLE 19- BEREAVEMENT LEAVE ARTICLE 20- PAID HOLIDAYS ARTICLE 21 -VACATIONS ARTICLE 22- INSURANCE ARTICLE 23- PENSION ARTICLE 24- GENERAL ARTICLE 25- WORK ASSIGNMENTS AND INJURY PAY ARTICLE 26- WAGES ARTICLE 27- DURATION OF AGREEMENT SCHEDULE "A" PREMIUMS BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 2

3 This agreement entered into as of the 1 ih day of March, 2012 Expiry Date: November 30, 2016 COLLECTIVE AGREEMENT BETWEEN: MORRISON LAMOTHE INC., 141 Finchdene Avenue, and 825 Middlefield Road Toronto, Ontario (hereinafter referred to as the "Company") AND : BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL UNION AFL, CIO, CLC, and its LOCAL 264 (hereinafter referred to as the "Union") ARTICLE 1 - PURPOSE 1.01 The general purpose of this Agreement is to maintain satisfactory relations between the Company and its employees; to promote the mutual interest of the Company and its employees in the Company maintaining a competitive position and being able to maintain an efficient operation; and to provide orderly collective bargaining relations as hereinafter provided Use of the masculine gender throughout this Agreement shall also be considered female. ARTICLE 2 - RECOGNITION 2.01 The Company recognizes the Union as the exclusive bargaining agent of all employees of Morrison Lamothe Inc. at its Former Fine Foods Division currently located 141 Finchdene Square and 825 Middlefield Road Business Units, in the Municipality of Metropolitan Toronto, save and except forepersons, persons above the rank offoreperson, office staff, management trainees, persons regularly employed for not more than twenty-four (24) hours per week and students employed during the school vacation period. ARTICLE 3- MANAGEMENT RIGHTS 3.01 Except as, and to the extent specifically modified by this Agreement, all rights and prerogatives of Management are retained by the Company and remain exclusively and without limitation within the rights of the Company and its Management and may be exercised by Management as it, in its discretion, sees fit. Without limiting the generality of the foregoing, the Company's rights shall include: (a) the right to maintain order, discipline and efficiency; to make, alter and enforce, from time to time, rules and regulations, policies and practices, to be observed by its employees; to discipline and discharge employees subject to the right of a seniority employee to the grievance procedure as set in Article 8 of this Agreement. BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 3

4 (b) the right to select, hire and control the working force and employees; to transfer, assign, promote, demote, schedule and classify employees, and to retire employees; to plan, direct and control its operations; to select and retain employees for positions excluded from the bargaining unit; to transfer employees into or out of the bargaining unit; to operate and manage the enterprise in all respects in order to satisfy its commitments and objectives. (c) the right to determine the location and extent of its operations and their commencement, expansion, curtailment or discontinuance; the direction of the working forces; the work to be done; the products to be manufactured, merchandised and sold; the standards of performance; whether to perform or contract for goods and services; the schedules of work; the methods, processes and means of performing work; job content and requirements; the qualifications of employees; the use of improved or changed methods and equipment; the number of employees needed by the Company at any time and how many shall work in any job; the number of hours to be worked; starting and quitting times; methods to be used to ensure security of the Company's property; and generally the right to manage the enterprise and its business without interference are solely and exclusively the right of the Company. Failure by the Company to exercise any of its Management Rights or other rights shall not be considered to be an abandonment of those rights nor shall the principle of estoppel be applied to such circumstances Without limiting the general right of the Company to discharge employees, it is expressly understood and agreed that the specific penalty shall be discharge for cause for the following: (a) deliberate contamination of product or sabotage of production or; (b) theft (including time theft). ARTICLE 4 - UNION SECURITY 4.01 The Company will deduct monthly from the pay of each employee covered by the agreement commencing with the first month of employment and every month thereafter such union dues as the Company is notified of by the Union. The Company agrees to deduct from the pay of the employee who has completed the probationary period, the union initiation fee upon receipt of an authorization form signed by the employee The total amounts so deducted will be forwarded to the Secretary Treasurer of the Local Union before the 15th day of the month following the month for which the deduction was made, along with a list of names of employees from whom the deduction of dues and/or initiation fees was made In order that the Company may have definite instructions as to what amount is to be deducted from monthly dues, it is agreed that the Union shall promptly notify the Company in writing over the signature of it designated officer, of the amount of the deduction to be made by the Company for regular monthly Union dues and the Company shall have the right to continue to rely on such written notification until it receives other written notification from the Union signed with the same formality New employees must sign check-off forms to be supplied by the Union, when hired. BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 4 -

5 4.05 The Union agrees to indemnify the Company and its representatives and hold it harmless from any claims which may arise in complying with the provisions of this Article. ARTICLE 5- UNION REPRESENTATION 5.01 Negotiating Committee The Company recognizes the right of the Union to elect a Negotiating Committee of not more than three (3) employees, and will deal with the said Committee on such matters as are properly the subject of negotiation during the term of this Agreement including proposals for the renewal or modification of this Agreement at the proper time. The Company agrees to pay up to three (3) members of the Union Bargaining Committee for a full scheduled shift for days spent at negotiations up to and including conciliation Union Stewards The Company acknowledges the right of the Union to elect not more than four (4) Shop Stewards, not more than three (3) of whom shall be located at the 141 Finchdene Square Plant, to assist the employees in presenting complaints or grievances to the Company. These representatives must have completed their probationary period, and must be regular employees of the Company during their term of office The parties acknowledge that the steward has regular duties to perform on behalf of the Employer. In a situation which requires a steward's attention during working hours, the steward shall not leave his regular duties without first obtaining the permission of the Employer. It is understood that the taking of such time away from regular duties shall be kept to a minimum and that permission will not therefore be unreasonably withheld The Union shall notify the Company, in writing, of the names of the Union Stewards and its officers and any change in the personnel of the Union officers and stewards before the Company shall be required to recognize them. Identification will be provided by the Union for all stewards while in the plant. ARTICLE 6- LABOUR MANAGEMENT COMMITTEE 6.01 Labour/Management Committee shall be established consisting of up to three representatives from each of the Union and the Company. The Committee shall discuss matters of mutual concern, however, the Committee shall not have jurisdiction to negotiate amendments to the Collective Agreement nor to address grievances. The Committee shall meet at a mutually convenient time and date every six (6) months or by mutual agreement. The parties shall agree to the agenda seven (7) calendar days in advance of the date of the meeting. ARTICLE 7 - NO STRIKES OR LOCKOUTS BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 5

6 7.01 The Union undertakes and agrees that while this Agreement is in operation neither the Union nor any employee shall take part in or call or encourage any strike, picketing, sitdown, slowdown or any suspension of or stoppage of or interference with work or production which shall in any way affect the operations of the Company nor shall there be any sympathy strikes or secondary boycotts. The Company agrees that it will not engage in any lockout during the term of this Agreement The word "strike" and the word "lockout" shall be deemed to have the meaning given these words in the Ontario Labour Relations Act. ARTICLE 8 - GRIEVANCE PROCEDURE 8.01 It is the mutual desire of the parties hereto that complaints of the employees shall be adjusted as quickly as possible without stoppage of work, and it is understood that an employee may present an oral complaint at anytime, without recourse to the grievance procedure herein A grievance shall be defined as a complaint regarding the meaning, interpretation, application or alleged violation of this Agreement, or in the case of an employee who has acquired seniority under this Agreement, a complaint that he has been unjustly laid off or has not been recalled from layoff or has been unjustly disciplined or discharged without cause No employee shall file any grievance until the employee confers with his supervisor not later than two (2) working days after the issue arose. The relevant steward may accompany the employee if he requests his assistance In the event that an employee complaint is not resolved and becomes a grievance the following steps of the grievance procedure will be invoked. Step 1 The grievance of the employee shall be stated in writing by the employee and the relevant steward. The form must be presented to the supervisor within three (3) working days from the time the circumstances upon which the grievance is based were known or should have been known by the grievor. The written grievance shall identify the facts giving rise to the grievance, section(s) alleged to be violated and signed by the grievor and countersigned by the employee's steward and dated. The supervisor shall give his answer to the grievance by the end of the second (2nd) day following the presentation of the grievance. Step 2 Failing settlement at Step 1, the written grievance may be referred, depending on the department, to either the Operations Manager or his designate, or the Facilities Manager or his designate, within five (5) working days following the written decision at Step 1. Within five (5) working days, a meeting shall be held between the grievor, the relevant steward, the chief steward and the appropriate Manager or designate to discuss the grievance. The appropriate Manager or his designate shall respond in writing within five (5) working days following the date of the meeting. BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 6

7 Step 3 Failing settlement at Step 2, the grievance may be referred in writing to the Director of Operations or his designate within five (5) working days following the written decision at Step 2. A meeting shall be held as soon as possible between the griever, the relevant steward, the chief steward, Staff representative and the Director of Operations or designate and appropriate Company representatives to discuss the grievance. The Director of Operations or his designate shall have five (5) working days following the meeting to state in writing his disposition of the matter. Step 4 If the Company's decision at Step 3 is unsatisfactory to the union, then the grievance may be referred in writing to arbitration as hereinafter provided within five (5) working days from the Director of Operations or designate's written decision. If a request for arbitration is not given within such five (5) day period, the decision at Step 3 shall be final and binding upon both parties to this Agreement and upon any employee involved It is expressly understood that an employee who has a complaint or a grievance shall follow the procedures as outlined in this Article and pending the investigation and determination of the validity of such claim shall continue to perform the duties assigned to him by management (unless he has been suspended or discharged), providing such duties do not jeopardize the life, health or safety of the employee a) The Union may file a "Policy Grievance" which may not be used to bypass the regular grievance procedure. A policy grievance is defined as one which alleges a misinterpretation or violation of a provision of this Agreement and which, because of the nature or scope of the subject matter, could not otherwise be instituted as an individual employee grievance. Such policy grievance shall be filed in writing within ten (1 0) working days of the initial incident giving rise to the complaint. The grievance must be signed by an authorized Officer of the Union and shall be heard at Step 3 of the Grievance Procedure. (b) The Employer shall have the right to lodge a grievance with the Union concerning the meaning, application or interpretation of any provision of this Agreement. The grievance shall be filed in writing with the Union by Senior Management within ten (1 0) working days of the incident giving rise to the complaint. A meeting shall be held between representatives of the Employer and the Union within ten (1 0) working days of filing of the grievance. The grievance shall be answered in writing by the Union within ten (1 0) working days of such meeting (a) An employee, other than a probationary employee, claiming that he has been laid off, not recalled, disciplined or discharged from employment without just cause shall file a signed, dated, written statement of such grievance setting out the nature of the grievance and the specific remedy sought at Step 2 of the grievance procedure within two (2) working days of the discipline or at Step 3 of the grievance procedure within three (3) working days of the layoff, failure to recall from layoff or the discharge. BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 7

8 (b) When an employee has been discharged without notice he shall have the right to interview the relevant steward or, in his absence, another steward at the place designated by Management for a reasonable period of time before leaving the plant premises The parties expressly agree that the grievance procedure does not apply in the event of the lay off, failure to recall from lay off, or the discharge of a probationary employee All time limits and other procedural requirements in this Article are mandatory and not merely directory. Failure to put a grievance in writing in accordance with the requirements hereof shall be deemed a complete waiver and abandonment by the griever No matter may be submitted to Arbitration which has not been properly carried through the required steps of the Grievance Procedure Any step of the Grievance Procedure may be waived by mutual agreement in writing between the Employer and the Union Decisions arrived at between the Employer and the Union on the disposition of any specific employee, Union or Employer grievance shall be final and binding upon the Employer, the Union and the employee or employees concerned. ARTICLE 9- ARBITRATION PROCEDURE 9.01 Both parties to this Agreement agree that a properly constituted grievance as defined in Article 8, paragraphs 8.02, 8.06 and 8.07, which has been properly carried through all the requisite steps of the Grievance Procedure outlined in Article 8 and which has not been settled or abandoned, may be referred to a single Arbitrator or by mutual agreement to a Board of Arbitration, at the written request of either of the parties hereto (a) The Board of Arbitration shall be composed of one (1) person appointed by the Employer, one (1) person appointed by the Union and the third (3rd) person to act as Chairman chosen by the other two members of the Board. (b) Within fourteen (14) days of the written request by either party for a single arbitrator or Board of Arbitration, the other party shall nominate an Arbitrator or its nominee to the Board if it agrees to a Board of Arbitration. The parties or nominees shall endeavour to agree as soon as possible to the single Arbitrator or Chairman respectively Should the parties fail to agree on a single Arbitrator, or the nominees fail to agree on a Chairman, the Ministry of Labour of the Province of Ontario shall be asked to nominate a person to act as single Arbitrator, or Chairman in the event of an agreement to a Board of Arbitration by the parties, in accordance with the provisions of the Ontario Labour Relations Act No person may be appointed as an arbitrator who has been involved in any attempt to negotiate or settle the grievance The decision of the Arbitrator or the Board of Arbitration, including any decision as to BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 8

9 whether the matter is arbitrable, shall be final and binding upon the parties and upon any employee affected by it. In the absence of an unanimous decision the majority decision shall be accepted as the decision of the Board. In the event there is no majority decision, the decision of the Chairman will be final (a) The Arbitrator or the Board of Arbitration shall not have jurisdiction to amend, alter, modify, or add to, any of the provisions of this Agreement, nor to substitute any new provision in lieu thereof, nor to give any decision inconsistent with the terms and provisions of this Agreement. Further the Arbitrator or Board is not authorized to deal with nor to adjudicate any matter not specifically assigned to it by the written grievance as specified in Article 8 or not covered by this Agreement or arising outside the terms of this Agreement. (b) The Arbitrator or Board of Arbitration shall have no jurisdiction to hear a lay off, failure to recall from lay off or discharge grievance put forth by or on behalf of a probationary employee No monetary adjustments shall be made retroactive prior to the date of the original complaint or event as properly identified in accordance with Article 8. An employee shall be obligated to mitigate damages as fully as possible and any monetary adjustment will be reduced by any employment income received by the grievor for the period applicable Each of the parties hereto will bear the fee and expenses of the nominee appointed by it and the parties will equally share the fee and expenses of the single Arbitrator or the Chairman of the Board of Arbitration Time limits fixed in this Article may be extended by mutual agreement in writing between the Union and the Employer. ARTICLE 10 -TESTING All job classifications above the General Labour job classification must meet the minimum skilled associates testing criteria The parties recognize that the Company must from time to time demonstrate to government and other agencies that its employees meet certain requirements. In order to be able to demonstrate that the employees meet such requirements, the Company will administer and the employee must pass certain tests, such as Occupational Health and Safety and Food Safety tests, following standard training. Failure to pass such applicable tests will result in the employee not being able to work until they have cooperated in the retraining process, which shall take place within a reasonable time frame, and are capable of passing the test to ensure that all government and other agency minimum requirements are met. ARTICLE 11 -HEALTH AND SAFETY BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 9

10 11.01 The Company and the Union agree to foster and maintain high standards of safety with a view to reducing and eliminating wherever possible the causes of industrial accidents. Representation on the Safety Committee will be in accordance with the provisions of the Ontario Occupational Health and Safety Act. Minutes of any such meeting shall be posted In the event an employee is injured at work, the employee shall attend the employee's doctor and return a completed Functional Abilities Form (FAF) and consent form to the Company in order to determine the employee's ability to perform modified work within the employee's restrictions as per the time limits set out in the Workplace Safety Insurance Act. Upon receipt of the completed FAF, the Company shall complete and forward Form 7. Employees must maintain communications with the Company in the event of an injury. ARTICLE 12 - SENIORITY Except for Maintenance and Tradesman employees, during the first sixty (60) days of work, excluding overtime shifts, an employee shall be on probation and during such probationary period, shall not be entitled to any seniority rights. Maintenance and Tradesmen employees shall be on probation for their first ninety (90) days of work, excluding overtime shifts, and during this period shall not be entitled to any seniority rights. Upon completion of this probationary period, the employee shall be credited from the date of first employment In all cases of lay-off, recall from lay-off, promotion or filling of any permanent job vacancy, the following factors shall be considered: (a) seniority; (b) skill; and (c) ability. Seniority shall govern wherever skill and ability are relatively equal A seniority list shall be established and posted. The seniority list so posted shall be revised by the Company every six (6) months. No grievance as to position on any seniority list shall be commenced more than thirty (30) days from the date of posting of the original or of any revised seniority list. Grievances as to position on any revised seniority list may only be taken as to relevant changes in position brought about by revision. A copy of each seniority list is to be forwarded to the Union. An employee exercising his seniority rights to avoid a layoff who takes work in a lower job classification shall receive the rate of the lower job classification to which he is assigned. Notwithstanding the foregoing, any employee assigned to work in a lower job classification for less than a full shift shall retain his classification rate. An employee who is temporarily assigned to a higher or lower job classification for the convenience of the Company will receive the rate of the job or his regular job rate, whichever is the higher An employee shall lose all seniority and be deemed to be terminated if he: - BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 10

11 (a) voluntarily quits the employ of the Company; (b) is discharged by the Company and such discharge is not reversed through the grievance procedure; (c) following a layoff, fails to return to work without reasonable excuse within seven (7) days of mailing of a registered letter containing a request to return to work on a specific date, addressed to the employee at his address as shown on the Company's records; (d) has been laid off for more than twelve (12) months consecutively, or a period of time equal to the length of service, whichever is shorter; (e) fails to return to work upon the expiration of a leave of absence unless the reason is satisfactory to the Company or utilizes a leave of absence for a purpose other than that for which it was granted; (f) retires or is retired; (g) is absent from work for three (3) or more consecutive days without personally notifying the Company, unless the employee provides a reasonable explanation for the absence It shall be the duty of an employee to notify the Company promptly of the employee's address or any change of said address. In the event an employee fails to give the Company such notification, the Company shall not be responsible for the failure of any and all notices to reach such employee (a) Job Posting When a new position or a permanent vacancy which the Company wishes to fill occurs, other than supervisory positions, the Company agrees to post a notice of such vacancy where all employees may see same. Such notice shall remain posted for three (3) working days. Such vacancies shall be filled in accordance with the provisions of Article (b) Backup Position The Company shall decide in its discretion when it requires backup positions for any classified position and how many are required at any time. The Company shall post and award any backup positions that it determines are required in accordance with paragraph (a). The back up position shall only be posted at the applicable plant and only employees at said plant shall be eligible to apply for the position. (c) An employee on approved leave of absence, lay-off or vacation, for a period in excess of three (3) working days may, prior to the start of the leave of absence, lay-off or vacation, submit a list to the Personnel Department and a copy to the chief steward, indicating those jobs in order of preference for which they wish to apply. If a permanent vacancy occurs in a job identified on the employee's list during his absence, he shall be deemed to have applied and will be assessed in accordance with this Article Layoff In the event of a reduction of work which causes a layoff of less than one (1) day, there shall be no movement of employees between the 141 Finchdene Square plant and the 825 Middlefield Road plant that results in the layoff of an employee in the non-affected plant. ARTICLE 13- SCHEDULING BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 11

12 13.01 Each employee with seniority can choose a shift preference (either: day shift, afternoon shift, or sanitation shift, as defined below in 13.02) every quarter and submit it to the Company by the deadline. The Company will post a reminder notice each quarter with a deadline for submission. The Company shall schedule employees in accordance with their preferred shift, provided the preferred shift is available. Start times within each shift will be determined and scheduled by the Company. If the preferred shift is not available the employee shall be scheduled on the next available shift within their classification, provided it is available and they have seniority. If the next shift within the classification is not available then employees will be scheduled back on their preferred shift (provided its available and they have seniority) at the next highest paying position they are qualified for. On the sixth consecutive worked day (of NOT being within your home job classification), an employee may decide to opt out of the next highest paying position they are qualified for. They must speak with an FLM and, subject to availability and their seniority, will be scheduled in any position they are qualified for, on their preferred shift at that point in time. If no work is available, employees will be laid off in accordance with article The Day I AM shift is a shift that commences anytime between 3:00am and 11 :OOam. An Afternoon I PM shift is a shift that commences anytime between 11:01 am and 6:30pm. A sanitation shift commences as business requires. If the Company is scheduling different lengths of shifts when the Company is scheduling employees, the Company will schedule employees to such different lengths of shifts (within their predetermined day or afternoon) with the more senior employees being scheduled for the longer shifts. The determination of the length of shift shall be made at the time the Company is scheduling employees. Employees may exchange shifts with another employee provided: They complete a shift exchange form and submit it to management prior to the start of the shift; They obtain the approval of the FLM prior to the start of the shift; AND They are not exchanging shifts with an employee on layoff. All employees exchanging shifts in violation of this article, whether they have instigated the exchange or not, are subject to disciplinary action. ARTICLE 14- HOURS OF WORK AND OVERTIME BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 12

13 (a) (b) The normal work week shall be forty (40) hours per week comprised of either five (5) days of eight (8) hours per day or four (4) days of ten (1 0) hours per day. Except in extenuating circumstances, in the event an employee's regularly scheduled shift is changed from five (5) eight (8) hour days per week to four (4) ten (1 0) hour days per week, or the converse, the Company shall provide one (1) week's advance notice. The employees' regular schedules shall be posted by 1:00 p.m. of the prior day and recorded by 3:00 p.m. Overtime at the rate of time and one-half (1 %) will be paid after the completion of the employee's scheduled daily shift. The Company agrees to pay a premium rate of time and one-half (1 %) for any shift scheduled on Saturday, Sunday or a Statutory Holiday. Employees who work on a Saturday as part of their regularly scheduled shift which commenced on a Friday will be paid straight time for such Saturday hours. Employees will be at their respective job stations and ready to work at their scheduled starting time at the commencement of the shift as well as the conclusion of breaks (a) (b) (c) (d) Break Periods Per Shift Each employee shall be allowed two (2) fifteen (15) minute rest periods. Rest periods are to be included in the regular scheduled hours and paid for as such. In the event an employee is required to work more than two (2) hours overtime beyond the end of his shift, the employee shall be allowed a fifteen (15) minute paid rest period during the scheduled overtime. Not withstanding (b), in the event an employee is required to work more than one (1) hour overtime beyond the end of his scheduled ten (1 0) hour shift, the employee shall be allowed a fifteen (15) minute paid rest period during the scheduled overtime. In the event an employee is required to work a double shift, the employee shall receive a fifteen (15) minute paid break prior to commencement of the second (2nd) shift. Overtime shall be offered as equitably as possible amongst those employees who normally perform the work. Overtime should be voluntary except if the Company does not have a sufficient number of qualified volunteers to meet its production. It is agreed that the Company shall then have the right to schedule or assign overtime work, provided that such assignments are made starting with the junior qualified employee within the classification and then using rotating reverse seniority of the employees who are at work and within the classification at the time Weekend overtime is open to employees from all lines, including both plants, in accordance with Article 14- Hours of Work and Overtime, paragraphs and ARTICLE 15 - LEAVES OF ABSENCE BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 13

14 15.01 (a) Leave of absence shall mean absence from work requested by an employee in writing and consented to by the Company in writing. All requests for personal leaves of absence shall be made in writing by the employee concerned. The request shall indicate in full the reasons for requesting the leave of absence, and shall be presented to the employee's immediate supervisor at least four (4) weeks prior to the date of the commencement of the requested leave. The Company shall respond within one (1) week of receipt of the employee's request. Any leave granted by the Company shall be confirmed in writing indicating the specified period of the leave. The granting or withholding of a leave of absence shall be at the sole discretion of the Company and shall be without pay or any other form of compensation. (b) Notwithstanding (a), during the period between January 1 and June 1, subject to the effective and efficient operation of the plant, the Company will grant a leave of absence not to exceed ten (1 0) weeks. Before a leave of absence is granted an employee must have taken his entire accumulated vacation entitlement. Not more than four (4) employees may be absent on a leave of absence at the same time When a leave of absence is granted, seniority shall continue to accumulate. ARTICLE 16 - PREGNANCY LEAVE An employee shall be entitled to pregnancy leave in accordance with the provisions of the Employment Standards Act of Ontario as it may be amended from time-to-time. ARTICLE 17- JURY AND WITNESS DUTY Each seniority employee who is summoned to and reports for jury duty or as a crown witness, as prescribed by applicable law, shall be paid by the Company the difference between the employee's basic hourly rate for the number of hours up to eight (8) or ten (1 0) hours that he otherwise would have been scheduled to work and the daily jury/crown witness fee paid by the court. The Company's obligation to pay an employee for jury/crown witness duty under this section is limited to a maximum of ten (1 0) days in any calendar year and in order to receive payment under this section an employee must meet all the following eligibility requirements: (a) the employee shall have given twenty-four (24) hours' notice to his supervisor that he has been summoned for jury duty or as a crown witness; (b) the employee shall furnish satisfactory evidence to the Company that he reported for and performed jury duty/crown witness testimony, on the days for which he claims payment; (c) the employee would otherwise have been scheduled to work for the Company on the day or days for which he claims payment; (d) the employee must produce to the Company a cheque or voucher from the court showing the amount paid and the dates in reference to which such payment is made, exclusive of meal and/or travel allowance; BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 14

15 (e) if the employee is excused from jury duty or crown witness testimony and still has at least four (4) hours of regularly scheduled work time available, he shall return to complete his shift as soon as reasonably possible after having been released. ARTICLE 18 - BULLETIN BOARDS The Union shall have the right to post relevant Union notices of union activities on an employee bulletin board provided any such notice is signed or countersigned by a full time salaried representative of the union and approved by a member of management. ARTICLE 19- BEREAVEMENT LEAVE When death occurs in a seniority employee's immediate family (ie. mother, father, brother, or sister), the employee, upon request, will be excused for a period not to exceed three (3) consecutive days or such fewer days as the employee may be absent, or in the case of a child or current spouse, will be excused for a period not to exceed five (5) consecutive days, immediately following the date of death, provided he attends the funeral. In the event the employee does not attend the funeral then the employee shall be paid one (1) day bereavement leave provided the leave is taken within two (2) days of the date of death. The employee shall not be entitled to receive any pay hereunder for any day upon which he would not otherwise have been scheduled to work for the Company. Payment will be based upon employees base hourly rate exclusive of premiums. The Company agrees to grant a seniority employee one (1) day's paid leave for the purpose of attending a funeral in the case of the death of the employee's mother-in-law, father-in-law, grandmother, grandfather, brother-in-law, sister-in-law, son-in-law, daughter-in-law. The employee shall not be entitled to receive any pay hereunder for any day upon which he would not otherwise have been scheduled to work for the Company. Payment will be based upon the employee's base hourly rate exclusive of premiums. ARTICLE 20 - PAID HOLIDAYS The following days shall be observed as holidays with pay for seniority employees. The following shall be subject to the qualifying requirements of paragraph New Year's Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, December 24, Christmas Day, and Boxing Day. Compensation shall be equivalent to the employee's straight time hourly rate for a day worked, provided he complies with the qualifications set forth in paragraph In order to qualify for any of the holidays designated in paragraph 20.01, the employee must work the scheduled shift immediately prior to and the scheduled shift immediately following the holiday. An employee on lay-off must work one (1) scheduled shift in the week before and one (1) scheduled shift in the week following the holiday to qualify for the paid holiday, provided the employee worked twelve (12) out of the twenty (20) scheduled shifts in the four (4) weeks ending before the week in which the holiday falls. Notwithstanding the foregoing, if a verified BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 15

16 emergency beyond the control of the employee requires an employee to leave work prior to the completion of his scheduled shift, such employee shall receive his holiday pay In the event an employee is scheduled to work less than five (5) days in a week, "the scheduled shift" shall mean the last and first scheduled shift of the employee in the week preceding and/or following the paid holiday. In the event an employee does not qualify under 20.02, the employee shall be paid holiday pay in accordance with the Employment Standards Act. ARTICLE 21 - VACATIONS Employees with less than one (1) year continuous service as of June 30 in any year will be granted vacation in accordance with the Employment Standards Act. An employee having at least one (1) year continuous service with the Company as of June 30 in any year shall be entitled to two (2) weeks vacation with pay computed at the greater of two (2) weeks pay or four percent (4%) of the employee's earnings with the Company in the twelve (12) month period immediately preceding such June 30 if the employee worked a minimum of 1,560 hours in the prior vacation year. If the employee worked less than 1,560 hours, he will then receive four percent (4%). The scheduled plant(s) shutdowns in July and August shall be considered personal vacation time to the extent an employee is entitled to take vacation. An employee having at least five (5) years' continuous service with the Company as of June 30 in any year shall be entitled to three (3) weeks vacation with pay computed at the greater of three (3) weeks pay or six percent (6%) of the employee's earnings with the Company in the twelve (12) month period immediately preceding such June 30 if the employee worked a minimum of 1,560 hours in the prior vacation year. If the employee worked less than 1,560 hours, he will then receive six percent (6%). An employee having at least ten (1 0) years' continuous service with the Company as of June 30 in any year shall be entitled to four (4) weeks vacation with pay computed at the greater of four (4) weeks pay or eight percent (8%) of the employee's earnings with the Company in a twelve (12) month period immediately preceding such June 30 if the employee worked a minimum of 1,560 hours in the prior vacation year. If the employee worked less than 1,560 hours, he will then receive eight percent (8%). An employee having at least twenty (20) years' continuous service with the Company as of June 30 in any year shall be entitled to five (5) weeks vacation with pay computed at the greater of five (5) weeks pay or ten percent (1 0%) of the employee's earnings with the Company in a twelve (12) month period immediately preceding such June 30 if the employee worked a minimum of 1,560 hours in the prior vacation year. If the employee worked less than 1,560 hours, he will then receive ten percent (1 0%). Accumulated vacation pay shall be paid by separate payment. ARTICLE 22- INSURANCE BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 16

17 22.01 Subject to the entrance requirements of the individual plans, the Company shall pay on behalf of all eligible full time employees, on payroll prior to January 1, 2012, the premium costs of the following insurance planes to be administered in accordance with the terms, conditions, and rules and regulations of the respective plans: (a) Life Insurance- 100% of basic annual earnings; (b) Accidental Death and Dismemberment- 100% of basic annual earnings; (c) (d) Major Medical- Deductible $10.00 per individual and $20.00 per family; Dental Plan- Blue Cross #7 or the equivalent basic dental plan- Two year lag effective June 1st of each year (e) Vision Care- maximum of one hundred and fifteen dollars ($115.00) effective December 1, 2013 per two year period for each employee and dependant. Maximum of one hundred and thirty dollars ($130.00) effective December 1, 2015, per two year period for each employee and dependant. (f) Weekly Indemnity: Equal to 60% of Weekly Earnings to a maximum of $ with benefits payable on the first day of accident, first day of hospitalization, eighth day of sickness to a maximum of 15 weeks. Note: There will be a two (2) year waiting period from date of hire prior to employees being eligible for Weekly Indemnity (a) (b) (c) All employees hired on or after January 1, 2012, will pay an employee premium for the benefit program. The employee premium will be twenty dollars ($20.00) per month for single coverage and forty dollars ($40.00) per month for family coverage. Payment will be made in equal instalments by payroll deduction. The parties agree that the Company is not the insurer. The Insurance Company has the right to require at any time at its expense an independent medical opinion by a medical practitioner selected by the insurer. The employer has the right to verify an extended absence up to and including an independent medical opinion at the Company's expense. Termination of Benefits: All benefits shall terminate at the end of the month following the month in which the lay-off commenced. All benefits shall terminate the end of the month following a leave of absence. All benefits shall terminate upon the lesser of the employee's length of service or twelve (12) months in the event of a non-occupational illness or accident. ARTICLE 23 - PENSION Effective December 1, 2008, the parties agree to introduce a Defined Contribution Pension Plan to be financed by the Company and the employees. The employees shall contribute twenty-five cents ($0.25) per hour for each hour worked. The Company shall contribute twenty-five cents ($0.25) per hour for each hour worked. BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 17

18 Effective December 1, 2009, the Company shall contribute fifty cents ($0.50) per hour for each hour worked. The employees shall contribute twenty-five cents ($0.25) per hour for each hour worked. The cost of administering the Defined Contribution Pension Plan will be borne by the Plans Annual Earnings. The Company agrees to allow employees to increase their hourly pension contributions beyond the twenty-five cents ($0.25) per hour for each hour worked, on a voluntary basis, on December 1st each year, provided the employee continues to contribute at the new rate for the following entire twelve month period. ARTICLE 24 - GENERAL Safety Shoes (a) Employees must wear Company approved footwear at all times. (b) Upon presentation of a receipt, each full time employee who has acquired seniority shall be eligible for payment each calendar year towards the purchase of Company approved footwear from a Company designated source. Effective date of ratification one hundred and ten dollars ($ ) Effective January 1, 2014 one hundred and twenty dollars ($120.00) Freezer Apparel The Company agrees to continue to provide and maintain suitable clothing to employees working with frozen food or in the freezer area Tool Allowance The Company agrees to provide any full time seniority maintenance and maintenance helper employee with a tool allowance of up to one hundred and forty dollars ($140.00) each calendar year to be used for the replacement of worn out or broken tools. Payments under this clause shall be made upon presentation of a receipt for the tool purchased and presentation of the worn or broken tool. Effective January 1, 2011 the tool allowance shall be two hundred dollars ($200.00) Minimum Recompense Any employee who worked the last working day previous and who had not been notified to remain away from work and who reports for work in the customary manner only to find no work available shall, at the Company's option, either be given three (3) hours of other work at his/her regular hourly rate or be paid the equivalent of three (3) hours of work, but this shall not apply if a shutdown occurs caused by reasons beyond the control of the Company. It is further understood that an employee who is discharged or suspended for cause shall have no claim under this section. Call In BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 18

19 An employee who has left the Company's premises for the day without being scheduled for overtime work and who is subsequently called back, will be paid for all hours worked at applicable rates. In no event, however, shall such employee receive less than three (3) hours of pay at time and one-half (1 Yz) unless the call back is immediately prior to his regular shift. ARTICLE 25- WORK ASSIGNMENT AND INJURY PAY The Company will continue to assess all the manpower requirements on all operations, and all employees shall perform a fair day's work. Any employee having a complaint concerning a work assignment shall, nevertheless, perform the same after which such complaint may be then presented through the procedure herein provided. If an employee is injured on the job so that he cannot complete his shift, he will be sent home and paid for the balance of the shift, always provided that he received medical treatment for the injury and presents proof thereof. ARTICLE 26 -WAGES During the lifetime of this Agreement, all payment of wages shall be made in accordance with the job classifications and wage rates set out in Schedules that are hereby made part of this Agreement. When new jobs are created by the Company or existing jobs are substantially changed, the Company shall place such jobs into effect and shall determine the wage rate which shall be consistent with existing wage rates for comparable jobs within the plant. The Union shall be notified when such new rates are placed in effect and may lodge a grievance beginning at Step 3 within ten (1 0) days from notification. An arbitrator shall have the right to determine if the rate is proper. Adjustment in Pay Provided the employee has fulfilled his requirement to accurately record his time of work, any error resulting in a shortage in an employee's pay in excess of one hundred dollars ($ ) will be paid by separate cheque no later than the end of the employee's shift following the day that the employee brings the shortage to the Company's attention. Any error resulting in a shortage of one hundred dollars ($ ) or less which is brought to the Company's attention by Friday will be adjusted for the following pay period. ARTICLE 27- DURATION OF AGREEMENT Unless changed by mutual consent in writing, the terms of this Agreement shall continue in effect from March 12, 2012 until November 30, 2016 and shall continue automatically thereafter for annual periods of one (1) year each unless either party notifies the other, in writing, within the period of ninety (90) days immediately prior to the expiration date that it desires to amend the Agreement. BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 19

20 27.02 Negotiations shall begin within fifteen (15) days following notification for amendment as provided in the preceding paragraph If pursuant to such negotiations an agreement is not reached on the renewal of amendment of this Agreement, or the making of a new Agreement prior to current expiry date, this Agreement shall continue in full force and effect until a new Agreement is signed between the parties or until conciliation proceedings prescribed at law have been completed, whichever date shall first occur. SIGNED AT TORONTO this day of '2012. MORRISON LAMOTHE INC. BAKERY, CONFECTIONERY TOBACCO WORKERS' & GRAIN MILLERS INTERNATIONAL UNION LOCAL 264 Janice Haight Tim Rock Luis DeMedeiros Nancy Holland Shahrouz Samadi Rakesh Khorana BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 20

21 SCHEDULE "A" Schedule of Wage Rates Effective Effective Effective Effective Classifications Mar Dec 1, 2012 Dec 1,2013 Dec. 1, 2014 Dec General Labour $16.15 $16.40 $16.60 $16.95 $17.30 Sanitation $16.40 $16.65 $16.85 $17.20 $17.55 Licensed Palletizer $16.40 $16.65 $16.85 $17.20 $17.55 Oven Operator $16.80 $17.05 $17.25 $17.60 $17.95 Machine Operator $17.25 $17.50 $17.70 $18.05 $18.40 Shipping/Receiving $17.80 $18.05 $18.25 $18.60 $18.95 Cook $18.20 $18.45 $18.65 $19.00 $19.35 Sanitation Team Lead $18.65 $18.90 $19.10 $19.45 $19.80 Maintenance Helper $17.90 $18.15 $18.35 $18.70 $19.05 Tradesman "A" $25.60 $25.85 $26.05 $26.40 $26.75 NOTE: The first pay following ratification a one hundred dollar ($ ) net, one time signing bonus will be paid out to employees on payroll at date of ratification. NOTE: Employees in the General Labour Classification shall be paid seventy-five percent 75%) of the classification wage rate during their probationary period. PREMIUMS Tradesman "A" Premium In the event the Company requires an employee to have an Instrumentation Technology (Industrial) Certificate from a recognized College in order to perform the employee's assigned job duties, the Company shall pay a premium of one dollar ($1.00) per hour. Electrical Premium In the event the Company requires an employee to have an Industrial Electrical Licence in order to perform the employee's assigned job duties, the Company shall pay a premium of one dollar ($1.00) per hour. - BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 21

22 Production Machine Operator Premium The Production Machine Operator must be able to: a) Perform all of the line set-ups without input from maintenance; b) Continuously adjust and evaluate all control points on the line to maximize throughputs without maintenance input. c) Perform changeovers on mechanical components without maintenance input except for electrical, electronic or any other licensed requirements. d) Perform daily preventative maintenance. Premium:. 75 cents per hour for all hours worked on the production lines as the machine operator. The premium will be paid on a graduated basis in.25 cents per hour increments until the Production Machine Operator is able to fully perform all of the job duties.,_, BAKERY, CONFECTIONERY, TOBACCO WORKERS' AND GRAIN MILLERS' INTERNATIONAL page 22

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