COLLECTIVE AGREEMENT BETWEEN RUSSEL METALS INC. CALGARY, CALGARY, ALBERTA AND UNITED STEELWORKERS OF AMERICA, LOCAL UNION 5663, CALGARY, ALBERTA

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1 COLLECTIVE AGREEMENT BETWEEN RUSSEL METALS INC. CALGARY, CALGARY, ALBERTA AND UNITED STEELWORKERS OF AMERICA, LOCAL UNION 5663, CALGARY, ALBERTA EFFECTIVE: EXPIRY: September 1, 2012 August 31, 2014 COLLECTIVE AGREEMENT ratified on October 14, 2012, at Calgary, Alberta.

2 INDEX ARTICLE 1 - PURPOSE OF AGREEMENT... 3 ARTICLE 2 - UNION RECOGNITION... 3 ARTICLE 3 - RELATIONSHIP... 3 ARTICLE 4 - MANAGEMENT RIGHTS... 4 ARTICLE 5 - UNION SECURITY... 4 ARTICLE 6 - RECOGNITION OF UNION COMMITTEES... 5 ARTICLE 7 - COMPLAINTS AND GRIEVANCES... 5 ARTICLE 8 -ARBITRATION... 7 ARTICLE 9- NO STRIKES OR LOCKOUTS... 8 ARTICLE 10 - SENIORITY... 9 ARTICLE 11 -VACANCIES, JOB POSTINGS AND PROMOTIONS ARTICLE 12- LAY-OFF AND RECALL ARTICLE 13- LEAVE OF ABSENCE ARTICLE 14 - HEAL TH AND SAFETY ARTICLE 15- PAY ON DAY OF INJURY ARTICLE 16- BULLETIN BOARDS ARTICLE 17 - BEREAVEMENT LEAVE/BEREAVEMENT PAY ARTICLE 18 - OFFICIAL NOTICES ARTICLE 19 - HOURS OF WORK ARTICLE 20- OVERTIME ARTICLE 21 - PLANT HOLIDAYS ARTICLE 22-VACATIONS ARTICLE 23 - WAGES ARTICLE 24 - HEAL TH & WELFARE BENEFITS PROGRAM ARTICLE 25 - APPENDICES ARTICLE 26 - GENDER AND NUMBER ARTICLE 27 - DURATION OF AGREEMENT APPENDIX "A" - HOURS OF WORK SCHEDULES APPENDIX "B" -JOB TITLES AND CLASSIFICATIONS APPENDIX "C" -STANDARD HOURLY WAGE RA TES APPENDIX "D" -PENSION PLAN FOR UNION EMPLOYEES APPENDIX "E" -HEAL TH AND WELFARE BENEFITS PROGRAM APPENDIX "F" -SENIORITY LIST APPENDIX "G" - GRIEVANCE REPORT APPENDIX "H" - TEMPORARY STUDENT EMPLOYEES LETTER OF AGREEMENT - HUMANITY FUND...:

3 ARTICLE 1 - PURPOSE OF AGREEMENT 1.01 The purpose of this Agreement is to define the relations between the Company and the Union, the wages and working conditions of employees of the Company in the bargaining unit, and the means by which complaints, grievances, and disputes shall be disposed of promptly and equitably. ARTICLE 2 - UNION RECOGNITION 2.01 The Company recognizes the Union as the exclusive bargaining agency for the employees of its Steel Service Centre, located in the City of Calgary, in the Province of Alberta, save and except: Management employees, sales, clerical or technical employees, plant manager, supervisors, janitors, or any other individuals having authority in the interest of the Company to hire, discipline or discharge The terms and conditions set forth in this Agreement shall have full force and effect for all employees in the bargaining unit as described in the preceding paragraph Persons whose regular jobs are not in the bargaining unit shall not perform work on hourly-rated jobs, except where such work arises: (c) (d) to instruct or train employees on existing, new or changing operations; in experimental and developmental work on Company products; under emergency conditions, when regular employees are not available; as part of the training program for a non-bargaining unit position. The training program shall not exceed fifteen (15) days, during which time the Company will not lay off a current member of the bargaining unit The Union recognizes that the Company has in the past, and will in the future, contract out some production, maintenance, repair, trucking, and fabrication work, and the Company agrees that, in the future, it will be limited by the principles, which the local management of the Company has followed in the past. In particular, advance notice will be given to the Union when a requirement arises to contract out production work. No employee shall lose his employment as a result of contracting out. ARTICLE 3- RELATIONSHIP 3.01 The Company, Union and employees agree that they all have rights and obligations under the Human Rights, Citizenship and Multiculturalism Act 3

4 and will abide by it respecting matters covered by this Collective Agreement The Company and Union agree that there will be no discrimination against any employee because of Union membership or Union activity Representatives of the Union shall have access to the Company's premises providing they do not cause employees to neglect their work. This will be with management's permission. ARTICLE 4 - MANAGEMENT RIGHTS 4.01 The Union acknowledges that it is the exclusive function of the Company, subject to the specific terms of this Agreement to: (c) (d) Generally manage the enterprise in which the Company is engaged, and without restricting the generality of the foregoing, to determine the number and location of plants, the products to be manufactured, methods of manufacturing, schedules of production, kinds and locations of machines and tools to be used, process of manufacturing and assembling, the engineering and designing of its products and the control of materials and parts to be incorporated in the products produced. Maintain order, discipline and efficiency. To establish new jobs, abolish or change existing jobs, change processes, products, equipment and operations. Hire, discharge, classify, transfer, promote, demote and discipline employees, provided that a claim that an employee has been discharged or disciplined without reasonable cause may be the subject of a grievance, and dealt with as hereinafter provided. ARTICLE 5 - UNION SECURITY 5.01 The Company agrees to deduct once each month from the earnings of every employee covered by this Agreement, the Union dues in the amount certified by the Union to the Company to be currently in effect according to the Union Constitution, by-laws and regulations of the Union. The total amount so deducted, along with the Summary of Union Dues (Form R 115) and the itemized check-off list of dues shall be forwarded to the United Steelworkers at the address given in Section 5.06, prior to the fifteenth (15th) of the month following the month in which said deductions apply, and in the manner provided for in Section 5.06 hereof. A duplicate copy of the Summary of Union Dues (Form R 115) and the itemized check-off list shall be forwarded to the United Steelworkers of America, #150, 2880 Glenmore Trail, S.E., Calgary, Alberta, T2C 2E The Company agrees that all present and future employees covered by 4

5 this Agreement shall, as a condition of continued employment, sign an agreement authorizing the Company to implement the provisions of Sections 5.01 and 5.03 hereof, and the Union agrees to indemnify the Company and hold it harmless against any claim which may arise in complying with the provisions of this Article The Company agrees to deduct an initiation fee or Union assessment in the amount authorized by the Union, upon receipt of an authorization signed by the employee, and to forward the amount so deducted to the Union in the manner provided for in Section 5.06 hereof The Company agrees to print the amount of total dues deductions paid by each employee and deducted by the Company for the previous calendar year on the Income Tax T4 form Cheques for dues, initiation fees and Union assessments shall be made payable to the United Steelworkers. All cheques shall be forwarded to: And made payable as aforesaid. United Steelworkers P.O. Box 9083 Commerce Court Postal Station Toronto, Ontario M5L 1K1 ARTICLE 6 - RECOGNITION OF UNION COMMITTEES 6.01 The Company agrees to discuss with the duly accredited Plant Committee of the Union all matters pertaining to or arising from the application of this Agreement. The discussions shall take place during regular working hours, whenever possible, at regularly scheduled meetings. The Plant Committee shall comprise not more than two (2) members, both of whom shall be employees of the Company The Negotiating Committee as designated by the Union shall consist of one (1) Union Staff Representative, the Unit Chairperson and a maximum of two (2) other Union members. With the exception of the Unit Chairperson, not more than one (1) of the two (2) members of the Negotiating Committee shall come from a single department. All members of the Negotiating Committee shall have at least one (1) year of seniority. ARTICLE 7 - COMPLAINTS AND GRIEVANCES 7.01 In case a grievance arises in the plant, an honest effort shall be made to settle the difference in the following manner: 7.02 There shall be a Grievance Committee consisting of two (2) employees selected by the Union, one (1) of whom will have been in the employ of the Company for one (1) year; the remaining member will have completed 5

6 his probationary period The Union agrees to advise the Company of the names of the members of the Grievance Committee, in writing, and also any changes from time to time In the event of a claim that an employee has been discharged or suspended unjustly or unreasonably, the grievance shall be filed at the SECOND STEP of the Grievance Procedure immediately and in any event within five (5) working days after the occurrence of the event in question Employees discharged or suspended shall be notified in writing by the Company of the reasons for discharge or suspension and an Officer of the Union Local shall be notified Management shall normally warn the employee before suspending or discharging. However, it is acknowledged that management can dispense with such warning whenever it feels that circumstances warrant such action. Any employee suspended or discharged shall have the right to see the Unit Chairperson or a Committee Member before leaving the plant any disciplinary warning of a serious nature shall be reduced to writing by the Company. A copy of same shall be provided to the employee and to the Unit Chairperson, and such written warning shall become a part of the employee's service record. After a period of twelve (12) months, a recorded offence shall be deleted from an employee's record and once deleted shall in no way be used against the employee Grievances of a group nature, and Policy Grievances in writing that are signed by two (2) members of the Grievance Committee, shall be initiated at the SECOND STEP of the Grievance Procedure by the Union If the Company has a grievance to bring forward, it shall be initiated at the SECOND STEP of the Grievance Procedure to which the Union shall respond in writing to the Company within the three (3) working day time limit designated The steps for handling any grievances shall be: FIRST STEP: The aggrieved employee shall notify his Grievance Committee Member who, in turn may request time off from his immediate supervisor in order to take up the matter and such request shall not be unreasonably denied. The Grievance Committee Member, with or without the aggrieved person, shall take up the matter with the person designated by the Company to deal with 6

7 grievances at this step. The Company shall give a decision in writing within five (5) days after the matter has been discussed by the parties at this step. Failing satisfactory settlement the grievance shall be put in writing on the grievance, form supplied by the Union (copy attached - refer to Appendix "I") and shall be signed by the aggrieved, after which the SECOND STEP may be invoked. SECOND STEP: The Grievance Committee, along with a representative or representatives of the International Union, and the representatives of the Company shall meet within three (3) working days after the date of the Company's written decision in the FIRST STEP and shall attempt to reach a satisfactory settlement. The Company shall give its written response to the Union within three (3) working days of the date of their meeting. If a satisfactory settlement is not reached either party may refer the matter to Arbitration within thirty (30) calendar days from the date of the written response at Step 2, and as indicated in Article 8 of this Agreement All settlements arrived at shall be final and binding upon the Company, the Union and the employee or group of employees concerned Matters to be dealt with under the foregoing provisions shall be discussed during working hours but lengthy negotiations for settlement of disputes shall be conducted outside working hours Union Officers, Stewards and Committee Members shall not suffer loss of pay for time spent during working hours on Company property in the performance of their duties under this Agreement Union Officers, Stewards and Committee Members, with the approval of their foreman, which approval shall not be unreasonably withheld, shall be permitted to leave their jobs to investigate and adjust grievances and to attend to their duties under this Agreement The time limits set out in Articles 7 and 8 of this Agreement may be extended by mutual agreement between the Parties. ARTICLE 8 -ARBITRATION 8.01 Whenever, pursuant to the provisions of this Agreement, a requirement for arbitration becomes necessary, the following procedure shall be implemented: 8.02 any matter referred to arbitration shall be submitted to a single Arbitrator mutually agreed upon by the Parties. 7

8 If the Parties are unable to agree upon a person to act as the single Arbitrator, either Party may request the Minister of Labour in writing to appoint a single Arbitrator The Arbitrator shall have jurisdiction and authority to interpret and apply the provisions of this Agreement, insofar as it may be necessary to the termination of a grievance referred to the Arbitrator, but he shall not have the jurisdiction and authority to alter, delete, substitute, or otherwise amend any of the provisions of this Agreement In the case of a reference as to whether or not a matter is arbitrable, or of a reference involving the interpretation, application, operation or any alleged violation of this Agreement, the decision of the Arbitrator shall be final and binding on both Parties to this Agreement, and any employee affected by it The Parties hereto will each bear one-half (%) of the expenses and charges of the Arbitrator. Each Party shall bear the expenses of its own legal counsel At any stage of the Grievance Procedure, including Arbitration, the conferring Parties (which shall include the Arbitrator) may have the assistance of the employee or employees concerned, and any necessary witnesses, and all reasonable arrangements will be made by the Company to permit the conferring Parties to have access to the plant, and to view disputed operations, and to confer with the necessary witnesses If it is determined or agreed at any step of the Grievance or Arbitration proceedings that any employee has been disciplined, suspended, demoted, or discharged unjustly, the Company shall return him to his job, with no loss of seniority, and recompense him for lost earnings, either in full or in part, or apply any penalty which is just and equitable in the opinion of the Parties, or in the opinion of the Arbitrator The Arbitrator shall render a decision within twenty-one (21) calendar days of completion of the Arbitration proceedings. ARTICLE 9 - NO STRIKES OR LOCKOUTS 9.01 During the term of this Agreement, the Company agrees that there shall be no lockout of employees at its Calgary plant, and the Union agrees, during said period, not to cause or counsel its members to cause, and that none of its members shall take part in, any strike, walk-out, work cessation or slow-down of any kind or description whatsoever, or in any other interference or stoppage, total or partial, of the Company's operations The Union agrees that it will not cause its members to strike in sympathy with, or in the assistance of any workers of any other company or union It is recognized that it is the Company's right to extend, limit, or curtail its 8

9 operations, or shut down completely, when in its sole discretion it may deem it advisable to do so. Reasonable notice of any shutdown shall be given to the Union, except as might otherwise be provided for in the Alberta Labour Act. ARTICLE 10 - SENIORITY Definition: Seniority is defined as length of service in the bargaining unit, and shall be applied on a bargaining unit basis. Seniority shall be applied in determining preference for promotions, transfers, demotions, lay-offs, recall, and as set out in other provisions of this Agreement Recognition of Seniority: The Parties recognize that job opportunity and seniority should increase in proportion to length of service. It is agreed that the term 'seniority' as used herein shall have reference to an employee's right to a job based on his length of service with the Company and his ability to efficiently fulfil the job requirements Probationarv Period: Seniority of each employee covered by this Agreement shall be established after a probationary period of the equivalent of sixty (60) working days and shall be calculated from his most recent hiring date. During the probationary period, the employee shall be entitled to all rights and benefits of this Agreement, except as otherwise provided Probationarv Employee: A probationary employee is a new employee or an employee rehired after loss of seniority who has not completed his probationary period. During this probationary period, the employee shall not be considered as a regular employee, and may be laid off or discharged by the Company, and such lay-off or discharge shall not be subject to grievance and/or arbitration. Upon completion of the probationary period, the employee shall be considered a regular employee, and his seniority shall accrue from his most recent hiring date Maintaining Seniority: Except as provided in Article 10.08, seniority shall be maintained and accumulated during: Absence due to lay-off; Sickness or accident; 9

10 (c) (d) Authorized leave of absence; Absence from employment while serving in Canada's Armed Forces during a period of national emergency Transfer to Jobs Outside of Bargaining Unit: Except as provided in Article 10.08, employees who are transferred from the bargaining unit to any other part of the Company's service shall hold and continue to accumulate seniority in the bargaining unit under the following conditions: (c) They have completed their probationary period. They exercise their seniority rights upon the termination of their jobs outside the bargaining unit. Their names and seniority dates are included on the seniority list Exercise of Seniority: Seniority may be exercised under the following conditions: (c) When the employee's position is abolished. When the employee is laid off due to a reduction in staff. When a new position is created at a rate of pay higher than the employee is at present receiving Loss of Seniority: An employee shall lose his seniority standing, and employment, and his name shall be removed from the seniority list for any of the following reasons: (c) (d) (e) (f) (g) If the employee voluntarily quits; If the employee is discharged and not reinstated under the terms of this Agreement; If the employee is absent without leave, and fails to report within three (3) working days; (except when the employee is able to provide an explanation which is satisfactory to the Company); If the employee is on lay-off for lack of work for a period in excess of twelve.(12) months; If the employee fails to return to work at the termination of a leave of absence (except with the written consent of the Company); If the employee transfers to a job outside the bargaining unit and remains outside the bargaining unit for longer than sixty (60) working days; If the employee is disabled and does not return to work within a 10

11 period of eighteen (18) months. However, notwithstanding the employee's loss of seniority, the Company shall undertake to consider re-employment of the subject employee, into any open or vacant job he is capable of performing, at the applicable hourly wage rate, providing: the employee has received full and complete clearance from his physician to return to work; the employee requests consideration for re-employment, in writing; the Union similarly requests such consideration from the Company, in writing. (It is also expressly understood that, by mutual agreement of the three (3) Parties named herein, the eighteen (18) month limitation can be waived, and the employee's name shall then be struck from the seniority list at an earlier time). (h) (I) If the employee takes a job elsewhere during a leave of absence without the approval of the Company. (He will be considered as having quit). In the event that an employee does not report for work within seven (7) calendar days from the date the Company mails his recall notice to him, he shall lose his seniority rights and employment, and the Company shall recall an additional employee to fill the vacancy Seniority List: The Company shall post an updated seniority list when changes occur. The seniority list shall include all bargaining unit employees on the payroll at the time the list is prepared and all employees whose seniority is being maintained pursuant to Articles and (c) The seniority list shall commence with the employee with most seniority, carry on downward to the employee with the least seniority, and contain the following information: (1) Employee's name (2) Employee's job class (3) Employee's rate (4) Employee's job title (5) Employee's seniority date (6) Probationary status (to be noted with an asterisk*) (7) First Aid Certification (to be noted with an "F.A." designation). 11

12 (d) (e) The seniority list shall be posted on all bulletin boards and copies shall be given to the Unit Chairperson. It is agreed that the Seniority List, which is attached to this Agreement as Appendix "F", is correct, and that no dispute shall exist with regard to any employee's service prior to the date of this Seniority List Once each year in the month of December the Company will forward to the Financial Secretary of the Local Union a list of employees including the following information: Employee name Social Insurance Number ( c) Seniority Date (d) Current Address ARTICLE 11 - VACANCIES, JOB POSTINGS AND PROMOTIONS Job Posting: Where a job vacancy occurs or a new job is created, notice shall be posted within three (3) working days on all bulletin boards, for a minimum period of three (3) working days. The notice shall set out a job description, qualifications required for the job, job classification, and wage rate. Notices of job vacancies or new jobs shall be given to the Unit Chairperson. It is recognized that administration of the job posting procedures shall be carried out in accordance with Article Application for Vacancy: An employee desiring the position must make application to the Company within the three (3) working day posting period by submitting a written application to the Supervisor. Copies of the application shall be given to the Unit Chairperson Effect of Recent Promotion: An employee may be ruled ineligible for the appointment if he has bid for and filled another job in the previous three (3) months Announcement of Successful Applicant: The Company shall announce the successful applicant for the position within four (4) working days after the end of the posting period Effect of Seniority: The senior employee applying for the position shall be given the appointment provided that he is qualified to fill the position, after a reasonable training period not to exceed fifteen (15) days. 12

13 If the senior applicant does not receive the appointment, the Company will advise the Unit Chairperson in writing, of the reasons why, and the name of the employee selected for the position Training Period: The training period may be extended by mutual agreement of the parties to do so. The training period may be curtailed by the Company at any time prior to the completion of the fifteen (15) day period if the employee is unable to demonstrate progress satisfactory to the Company of their being able to perform the position, or they indicate to the Company their desire not to complete the training period. In either case, the provisions of Article of this Agreement shall then apply Transfer Back to Original Position: In the event the employee is not able or does not wish to complete the training period, or cannot satisfactorily perform the job following the training period, he shall be returned to his former position and wage rate, without loss of seniority; any other employee who has been promoted or transferred because of the rearrangement of positions shall also be returned to his former position and wage rate, without loss of seniority Temporary Assignment: It is agreed that temporary assignments can be made without regard to seniority to enable the Company to meet short-term operational requirements. The temporary assignments may include pending assignments made under job postings, provided that temporary assignments will not be used to deny senior employees the right to fill positions under the posting provisions. Temporary assignments are defined as a period of one (1) month or less. For a temporary assignment to continue beyond one (1) month, mutual agreement between the Union and the Company is required. When a temporary assignment due to the absence of a regular employee exceeds one (1) month and is known to become a longterm absence, the position will be posted and awarded as a temporary posting. Should it be determined that the regular employee referred to above will not return to work, then the temporary posting will be considered a permanent posting. When a temporary assignment is expected to exceed one (1) week in duration the employee will be given written confirmation. If an employee is temporarily assigned to a position calling for a higher rate of pay he shall be paid the higher rate, as per Appendix "C" for all hours so worked. If any employee is temporarily assigned to a position paying a lower rate of pay than his normal job, he shall retain his normal rate of pay. 13

14 (c) If an employee is transferred to a lower rated job at his own request or because of a reduction in the working force, he shall receive the lower rate Employees on Lay-off: New employees shall not be hired where there are employees on lay-off who are qualified to perform the job. ARTICLE 12 - LAY-OFF AND RECALL Notice: The Company shall when practical to do so give the Union advance notice of any lay-off due to lack of work, of not less than five (5) working days, and shall discuss with the Union the measures to be taken to effect it, except in cases of lay-offs or shut-downs occasioned by emergency conditions Basis of Lay-off: Subject to the provisions of below, in the case of lay-off due to lack of work, seniority shall determine the employees to be retained, providing they can fulfil the job requirements. No employees shall be laid off without being given an opportunity to transfer to any department in which work may be available, providing that the employee shall be qualified to do the work available. The employee shall be given a reasonable familiarization period (not to exceed eight (8) hours) by supervision, or an employee so designated by supervision. The wage rate of any employee so transferred shall be adjusted to the proper rate for the work to which he is transferred Lay-off Procedure: The following order shall be adopted in cases of lay-off due to lack of work: (1) Employees with no seniority rights; (2) All other employees in reverse order of their seniority. (c) Deviations from the above procedure may be made by mutual agreement between the Parties hereto, when such deviations are necessary in order to retain a working force of employees who are qualified and able to perform the available work. Notwithstanding their position on the seniority list, all Union Officers shall, in the event of a lay-off, be continued at work as long as 14

15 there are jobs, which they are qualified to perform. The Unit Chairperson shall work on the day shift during his term of office, when possible and practical. (d) The Company agrees to discuss with the Union any case of hardship or alleged injustice arising out of any lay-off Recall Procedure: In the event that it is necessary to increase the work force or to recall employees to any job, and there are employees with seniority rights who have been laid off for lack of work, the following order of recalling employees shall be adopted: (1) Union Officers shall be recalled if they are qualified to perform the job. (2) All other employees who are qualified to perform the job shall be recalled in order of their seniority. (c) Employees entitled to be recalled shall be notified by single registered letter sent to their last known address. In addition to such notice, employees may also be advised personally or through the Union. Employees so notified are required to communicate with the Branch Manager or his designate immediately and to report to work within seven (7) calendar days or less from the date such notice is post-marked Proper Address: It is the responsibility of the employees to report current addresses and telephone numbers to the Company and to the Union. ARTICLE 13- LEAVE OF ABSENCE Leave for Personal Reasons: The Company may grant an unpaid leave of absence not to exceed thirty (30) days to a seniority employee for personal reasons in accordance with the following: a) Prior to applying for a Leave of Absence the employee must first use all of their earned vacation. b) The Company may require proof of the reason for the request. c) The Employee must make the request in writing to the Plant Manager or in his absence the Branch Manager as far in advance as 15

16 reasonably possible stating the length of time requested and the reason for the request. d) A request for an extension of leave to a maximum of thirty (30) days may be granted provided the request is made prior to the end of the initial leave and in consideration of operational requirements. e) Leave requests for emergency conditions will be granted. f) An employee who uses a Leave of Absence for a purpose other than that for which it was granted, or does not report to work on the approved return to work date, may be subject to disciplinary measures up to and including the termination of employment Leave to Attend Union Gatherings: An employee who has been elected or appointed by the Union to attend national or local gatherings may get a leave of absence without pay for this purpose. Not more than two (2) employees may take such leave of absence at one (1) time and they must give the Company one (1) week's notice in writing. This notice must be confirmed by the Union. The leave will not exceed two (2) weeks, plus reasonable travel time. However, such leave of absence must not interfere with the efficient operation of the plant Jurv Duty Leave An employee who has completed one (1) year of seniority and is required by law to serve as a court juror shall be paid the difference between the pay received for such jury duty and his regular straight time pay for hours he otherwise would have been required to work during his jury duty subject to the following: (c) The days eligible for payment shall not exceed five (5) per week. The employee provides the Company both advance notice and proof of service, as well as the full amount of pay he received from the court. The employee reports to work his regular schedule when not required for actual jury duty on any day, or portion of a day, he is seeking payment from the Company. ARTICLE 14 - HEAL TH AND SAFETY The Company and the Union agree that they mutually desire to maintain high standards of safety and health in the plant The Company agrees to comply with the provisions of the Occupational Health and Safety Act Both the Company and the Union, and the employees recognize that a 16

17 healthy and safe work environment and safe work practices are essential to the well-being of employees, and for the efficient operation of the plant. The Union will encourage its members to work in a safe manner and to cooperate in the maintenance of a safe and healthy work environment. The Company will continue its established policy of protecting the health of its employees, providing safe working conditions, and promoting safe work practices. The Union will assist the Company in carrying out an accident prevention program No employee shall carry out work where there exists an imminent danger to the health or safety of the employee, or carry out any work that will cause to exist an imminent danger to the health and safety of another person present at the work site, or operate any tool, appliance or equipment that will cause to exist an imminent danger to the health or safety of that employee, or another person present at the work site. Any refusal on the part of any employee to perform an unsafe act in accordance with the Occupational Health and Safety Act shall not be deemed to be a violation of this Agreement, nor shall any employee be disciplined for such refusal. The Company and the Union agree that the Safety and Health Committee shall consist of a total of four (4) members, of whom two (2) shall be appointed by the Union, one (1) of whom shall have at least one (1) year's seniority with the Company at the time of his appointment, with the remaining member having completed his probationary period, and the other two (2) members shall be appointed by the Company. It is expressly understood that the two (2) members appointed by the Union shall not be taken from the same department or activity. The Committee's function will be to plan, create, and execute a safety program and to promote safety and industrial hygiene in the plant. It shall hold regular monthly meetings, minutes of which shall be issued to all members of the Committee. Monthly inspections of the Plant shall be made by one (1) Company member of the Committee and by one (1) appropriate Union member of the Committee. A Company member and a Union member of the Safety Committee shall investigate and report on all serious accidents. The Safety Committee shall review such reports and recommend corrective action where considered advisable The Company will maintain reasonable and customary first-aid supplies for emergency treatment of accidents during working hours, and a logbook of all accidents shall be maintained. A qualified first-aid attendant shall be available on all shifts. Employees are required to report all accidents. The Company and the Union will encourage members to participate and enrol in recognized first-aid courses. All employees who have successfully completed such courses and maintain their designation as First-Aid attendants required by the Company shall be paid a premium of fifteen ($0.15) cents per hour The Company will arrange for the following: 17

18 (c) Workrooms and washrooms with heat, light and hot water. A lunchroom with proper facilities for employees and adequate drinking fountain facilities. Lunchrooms and washrooms shall be maintained in a sanitary condition The Safety Committee shall meet each month on Company time (c) The Company agrees to furnish the following items of equipment for use by employees while working in the plant. It is mandatory that such equipment be worn by the employees, as directed by the Company: Goggles for Grinders Goggles for Gas Cutters Safety Goggles Gloves for Welding and Gas Cutting Operations Safety Helmets Tape measures will be replaced by the Company when the worn or broken tape is turned in to the foreman. Gloves to be provided as required. Safety Shoes It is mandatory that employees wear Company authorized metatarsal safety footwear. The Company, through a designated vendor, will provide to each seniority employee, once per calendar year, one pair of authorized safety footwear with metatarsal protection up to a maximum cost of one-hundred and seventy-five dollars ($175.00). In the event the designated vendor is unable to provide footwear specific to an individual's needs, the Company will reimburse the employee to a maximum cost of one-hundred and seventy-five dollars ($175.00) upon presentation of a receipt of purchase. If due to normal wear and tear footwear requires replacement more frequently then the employee must obtain the approval of the Plant Manager. Work Coveralls The Company will provide work coveralls at no cost to the employee. This clothing may be used only in the service of the Company Priority will be given to prompt delivery of urgent messages for employees during working hours. Safety Glasses The Company will reimburse an employee up to two hundred and twenty 18

19 dollars ($220), exclusive to GST, every two (2) years toward the cost of approved prescription safety eyewear with side-shields. The employee must provide the Company with the receipt of purchase to claim the reimbursement Employees will not be assigned to operate equipment at a customer's place of business. ARTICLE 15- PAY ON DAY OF INJURY If an employee, upon entering the Company property and prepared to commence work, meets with an accident which incapacitates him from completing his duties, he shall be paid for the time lost on the day he was injured, at his applicable rate for that shift, providing reasonable proof is supplied the Company that the employee was examined by a doctor on that same day. ARTICLE 16 - BULLETIN BOARDS The Union shall have the exclusive use of a bulletin board on the premises of the Company and provided by the Company for the purpose of posting papers, notices, etc., which may be of interest to Union members. All such material may be posted only upon the authority of the Executive Committee of the Union. The Company shall be informed of any such posting. ARTICLE 17 - BEREAVEMENT LEAVE/BEREAVEMENT PAY In the case of a death in the immediate family of an employee, the Company shall grant three (3) days' paid leave of absence (twenty-four hours) at the employee's regular straight-time hourly rate of pay. Such days may be taken during the period from the date of death through to the date of interment however will be no longer than ninety (90) calendar days apart. The employee must attend the funeral or is required to take an active part in estate arrangements of the deceased. Immediate family shall be defined as parents, current spouse, children, brother or sister, grandchildren, mother-in-law, father-in-law and grandparents. It is understood that any bereavement payment made by the Company to an employee pursuant to this provision shall be for regularly scheduled shifts missed or time on vacation. In the event of vacation, an employee shall be entitled to reschedule the bereavement time taken while on vacation, up to three (3) days at a mutually agreed time. In the case of a death of an employee's grand parents-in-law (i.e. the birth grandparents of the employee's spouse) one (1) day leave of absence will be granted on the day of the funeral without loss of regular earnings. 19

20 ARTICLE 18- OFFICIAL NOTICES Any notice required to be given to the Company under the terms of this Agreement shall be given by mail addressed to it at its registered address: Branch Manager Russel Metals h Street SE Calgary, Alberta T2C 2A1 Any notice required to be given to the Union under the terms of this Agreement shall be given by mail and addressed to: The Secretary of the Union, United Steelworkers of America, Local Union 5663, #150, 2880 Glenmore Trail, S.E., Calgary, Alberta, T2C 2E7 ARTICLE 19 - HOURS OF WORK This Article is intended to define the normal hours of work and shall not be construed as any guarantee of work or pay, or of hours of work per day or per week, or of days of work per week. Overtime will not be calculated or defined in this Article The regular hours of work and the normal work week shall be as defined in Appendix "A" Lunch Period: Employees shall be allowed an uninterrupted lunch period of thirty (30) minutes, on their own time Coffee Breaks: The Company agrees that all employees will be allowed two (2) coffee breaks of ten (10) minutes on Company time, one (1) in the first half of each full shift, and one (1) in the second half of each full shift. (d) It is further agreed that, when the workload is such that the taking of coffee breaks at one (1) time by all employees would be detrimental to the Company operations, then suitable arrangements will be made, allowing employees to receive their coffee breaks on a rotational basis. In the event that it is anticipated that an employee will be required 20

21 to work at least two (2) or more hours of overtime following a regular shift, a ten (10) minute rest period will be provided at the start of the overtime shift. A further ten (10) minute rest period will be provided for each further two (2) hours of uninterrupted work during the overtime shift providing work is to resume after each break. For the purpose of this Article, the lunch break provided for in Article shall be considered as constituting the required rest period. ARTICLE 20 - OVERTIME Overtime shall be defined, under the provisions of this Agreement, as all hours worked by an employee: (c) (d) in excess of eight (8) hours in any day, Monday through Friday inclusive; on a Saturday; on a Sunday; on any Plant Holiday Overtime Distribution For the purpose of overtime distribution, there shall be two (2) work areas: Warehouse and Metal Processing. (1) Overtime will be distributed to those employees who normally perform the work at the time; (2) Have signified their availability for overtime work when requested by the company; (3) Are fully qualified to perform such work. (c) Each work area will be responsible for the equitable distribution of overtime opportunities. Overtime opportunities worked and overtime opportunities refused will be recorded. Employees working the day/afternoon shifts who are interested in working overtime on their scheduled days of rest should sign the overtime availability sheet by the Wednesday preceding their scheduled days of rest. Employees working the weekend shift who are interested in working overtime on their scheduled days of rest should sign the overtime availability sheet by the Friday preceding their scheduled days of rest. Where overtime is required beyond the normal work day, employees who normally perform the work at the time will be offered the overtime first. If there is still a need for employees to 21

22 work, it will be offered based on the availability sheet. (d) If there is still a requirement for employees to work, then it will be offered to the senior qualified employee in the facility All overtime worked shall be paid at time and one half the employee's regular hourly wage rate, except the following overtime situations, which shall be paid at two times the employee's regular hourly wage rate: (c) Overtime beyond the first four (4) hours of overtime worked In any regular work day (Monday to Friday inclusive). Overtime beyond the first four (4) hours of overtime worked On a Saturday. Overtime worked on a Sunday or Plant Holiday Employees participating in Company required training programs conducted by the Company on a Saturday, shall be paid at a rate equal to one hundred and twenty five percent (125%) of their straight time hourly rate, excluding all premiums, for all hours spent in such training. It is agreed by the Company and Union that such Company required training programs are considered mandatory for employees to participate in. There shall be no pyramiding or double-counting of time in the calculation of overtime. Overtime work shall be applied and calculated on the following basis: Overtime - Meal Break following a Regular Shift In the event that it is anticipated that an employee will be required to work two (2) or more hours of overtime, such employee shall be given a twenty (20) minute paid meal break after two (2) hours of work, provided it is necessary to resume overtime work after the meal break. In the case of overtime work involving a paid meal break as above, if the employee(s) concerned were not notified on the previous work day about the overtime work, the Company will reimburse the employee(s) for the cost of the meal, but it will remain the responsibility of the employee(s) to provide said lunch For the purpose of calculating overtime pay, an employee will be considered to have worked an eight (8) hour day even though he has been absent from work on that day under the following conditions: (c) Absence through sickness or injury, upon producing a doctor's certificate satisfactory to the Company. Authorized absence in writing from an employee's department head. Any other absence, which is acceptable to the Company. 22

23 ARTICLE 21 - PLANT HOLIDAYS All employees covered by this Agreement shall receive pay for the Plant Holidays at their regular rate of pay times the number of hours they are regularly scheduled to work, for each of the Plant Holidays, in addition to any wages which they may be entitled to for work performed on such holiday: New Year's Day Family Day Good Friday Victoria Day Canada Day Heritage Day Labour Day Thanksgiving Day 9. Remembrance Day 10. Christmas Day 11. Boxing Day 12. Either the day before Christmas Day, or the day before New Year's Day, as designated by Management. (TOTAL: 12 days) Payment for any of the above stipulated holidays will not be voided should such holiday fall on a Saturday or a Sunday. Holidays falling on a Saturday or Sunday will be observed on the day decreed by the government, or the observance of the above holidays may be transferred by mutual agreement to days other than the dates proclaimed or provided herein In case of sickness at a time when a paid Plant Holiday as per the Union Agreement falls due, one (1) holiday will be paid for, providing such sickness has been established by doctor's certificate satisfactory to the Company. It will be the responsibility of the employee to furnish the Company with the doctor's certificate. Such doctor's certificates shall not be unreasonably refused by the Company. (c) Each employee will receive a regular day's pay provided he has completed thirty (30) work days, has worked on his last scheduled working day prior to the holiday, and his first scheduled working day after the holiday. The Company agrees that it will not lay off employees in order to cause them to forfeit pay for any Plant Holiday. (d) Refer also to Article 22, item ARTICLE 22 -VACATIONS Definitions: 'Vacation Year' shall mean the period running from May 1st of the calendar year to April 30th of the following calendar year. 23

24 'Vacation Year Earnings' shall mean the employees' gross earnings in the previous vacation year including any vacation pay received in that same period Length of Vacation: Employees shall be entitled to the following periods of vacation in the vacation year based on their seniority at May 1 of the Vacation Year: Less than 1 year Length of Vacation Vacation Pay One (1) day for each month 4% of seniority to a maximum of ten ( 10) working days 1 year but less than 5 years 5 years but less than 1 O years 10 years but less than 20 years 20 years or more Two (2) weeks Three (3) weeks Four (4) weeks Five (5) weeks 4% 6% 8% 10% Vacation Scheduling: A vacation request schedule shall be posted on the bulletin board by February 1 of each year, and shall be removed for scheduling on March 1 of that year. The vacation schedule will subsequently be posted, or reposted as modifications are made, and will remain posted until April 30 1 h of the following year. The prime vacation period shall fall between June 1st and October 31st in each year. Vacation time desired during this period shall be granted to employees, based on seniority order, and also consistent with the Company's requirement for efficient operation of the plant. Notwithstanding the seniority, provisions noted herein, preference for taking vacations during the months of July and August shall be given to employees with school-age children. Employees entitled to more than three (3) weeks' vacation may be scheduled for: Three (3) weeks during the prime vacation period, and the remaining vacation outside the prime vacation period. Such employees who desire more than three (3) weeks' vacation in one (1) unbroken period must make such request before the schedule is posted. The granting of such requests will be subject to production requirements and preference shall be in accordance with seniority. 24

25 Vacations must be taken in the Vacation Year. Vacations may not be postponed from one Vacation Year to another, in order to accumulate a longer vacation period Paid Holidays During Vacation: If a paid holiday recognized in this Agreement should fall during an employee's vacation period, he shall receive pay for that holiday, and schedule the remaining vacation day with pay on a mutually agreed upon date When Vacation Pay is Payable: Any employee who is entitled to vacation shall receive his vacation pay by direct deposit on the regular payroll scheduled when the vacation is taken Vacation Pay in Year Employment Ceases: Employees leaving the employ of the Company for any reason shall be entitled to receive vacation pay for the vacation year at the applicable amount under this Article, less any vacation pay already received Effect of Absence: An employee who has been absent during the vacation year will be entitled to the prorated vacation time off and receive the applicable percentage of this Vacation Year earnings in accordance with Article 22.02, except for the following: An employee who suffers an injury at work and who is in receipt of WCB benefits shall receive vacation pay in accordance with Article and based on the greater of the weekly earnings or the percentage of earnings accrued. An employee who is absent from work due to illness for up to 600 hours, shall receive his vacation pay in accordance with Article 22.02, and based on the greater of the weekly earnings or the percentage of earnings accrued. (c) ARTICLE 23 - WAGES An employee on a protected leave (maternity, parental, etc.), shall receive his vacation pay in accordance with Article 22.02, and based on the greater of the weekly earnings or the percentage of earnings accrued. For purposes of this Article 22.07, normal vacation day's entitlement and plant holidays are not considered to be days of absence from work Rates of pay will be in the amount and in accordance with the classifications and effective dates set forth in Appendix "C". 25

26 Each employee will be assigned a job classification by the Company, the duties of which he is competent to perform and which generally reflect his normal work. If any job classifications have been overlooked in this wage schedule or if any new jobs are created, the Parties hereto are agreed to negotiate a rate for the job(s) in question and select a suitable job title. Disputes shall be resolved through the grievance procedure, including arbitration. The rates for the classifications set forth in this Agreement and for any subsequent additions thereto mutually agreed upon, are the agreed-upon rates for those classifications and, therefore, no employee may perform work coming within the classifications for a rate less than the rate set forth in this Agreement. The refusal of any employee to work for a lesser rate shall not be grounds for dismissal by the Company. The Company and the Union may agree upon training rates for such classifications and the method of application for such training rates. Shift Differential: Employees will be paid shift premiums as follows: Shift Premium $0.75/hr Shift Premium with First-Aid Certification $0.90/hr Any shift premium provided shall be paid during overtime hours at the rate outlined, but shall not be included in the standard hourly rate for computing overtime pay Pay Days: Employees shall be paid by direct deposit into their bank account every second Friday except for circumstances beyond the control of the Company. On the same day, they will receive their pay-slip showing the wages earned and other allowances and deductions. These pay-slips will normally be provided on the day proceeding, when the regular payday falls on a Plant Holiday, or when working afternoon or night shift, except for circumstances beyond the control of the Company. In event of a delay in delivery of either pay or pay-slips, the Company will take all reasonable steps to ensure prompt delivery of pay and pay-slips Any employee who resigns of his own accord or is being discharged shall be paid all wages due to him on the next scheduled pay following his last working day. Any employee who is laid off or resigns of his own accord shall be paid all wages due him on the next payday immediately following the expiration of his last working day 26

27 23.08 Reporting Pay: Subject to the exceptions set forth in this Section, any employee reporting for work shall receive a minimum of four (4) hours' pay at his regular rate applicable on that day, providing that, if four (4) hours of work is not available at his regular job, he shall perform such other work as may be assigned to him, to qualify for such pay. This provision shall not apply if the employee is prevented from starting work because of a power shortage, power failure or any circumstance beyond the control of the Company such as fire, flood, strike, etc Call-Out Pay: Any employee who has already left the premises of the Company after completion of his scheduled shift and who is recalled for emergency work shall be paid one-and-one-half (1%) times his regular straight time hourly rate for the first four (4) hours only. He shall be paid two (2) times his regular straight time hourly rate for all further hours worked on recall, up to the starting time of his regular shift. In no event will the employee receive less than four (4) hours pay. However, if it is found that the work that the employee was called in to perform cannot now be performed, the employee will have the option of: (i) (ii) working four (4) hours on such other work as may be assigned to him, to qualify for such call-out pay, or leaving the Company premises, under which condition no premium payment would be payable. (c) These provisions and shall not apply if the employee is prevented from starting work because of a power shortage, power failure or any other circumstances beyond the control of the Company such as fire, flood, strike, etc. ARTICLE 24 - HEAL TH & WELFARE BENEFITS PROGRAM When new employees are eligible, they shall be required as a condition of employment to participate in the Pension Plan and the Health & Welfare Benefits Program as follows: Pension Plan: A summary of the terms of the Pension Plan is contained in Appendix "D". Health & Welfare Benefits: A summary of the Health & Welfare Benefits Program is contained in Appendix "E". 27

28 ARTICLE 25 - APPENDICES Attached hereto and forming part of this Agreement are the following appendices: 1. Appendix "A" - HOURS OF WORK SCHEDULES 2. Appendix "B" - JOB TITLES AND CLASSIFICATIONS 3. Appendix "C" - STANDARD HOURLY WAGE RATES 4. Appendix "D" - PENSION PLAN 5. Appendix "E" - HEAL TH & WELFARE BENEFITS PROGRAM 6. Appendix "F" - SENIORITY LIST 7. Appendix "G" - UNION GRIEVANCE FORM 8. Appendix "H" - TEMPORARY STUDENT EMPLOYEES ARTICLE 26 - GENDER AND NUMBER wherever the use of the male gender is applied herein, it shall also apply to the female gender, where applicable. Words importing the singular number may be constructed to extend to and include the plural number, and vice versa. 28

29 L/-h/ IN WITNESS WHEREOF, the parties hereto have executed this Agreement this &_ day of December, RUSSEL METALS INC. CALGARY, ALBERTA UNITED STEELWORKERS OF AMERICA, LOCAL UNION 5663 CALGARY, ALBERTA Doug McKearney Bruno Baseotto

30 APPENDIX "A" - HOURS OF WORK SCHEDULES A-1 The regular scheduled hours of work shall be as follows: DAY SHIFT: Monday - Friday 6:00a.m. - 2:30 p.m. ROTATIONAL DAY SHIFT Monday through Thursday - 10:00 a.m. - 6:30 p.m. Friday - 8:00 a.m. - 4:30 p.m. AFTERNOON SHIFT: Monday - Thursday 2:15 p.m. - 12:45 a.m. A-2 DEFINITION OF SHIFTS: (c) (d) Any shift starting on or after six a.m. (6:00), and up to including ten a.m. (10:00) is the first or day shift. Any shift starting after ten a.m. (10:00), but before six p.m. (6:00) is the second or afternoon shift. Any shift starting on or after six p.m. (6:00), but before six a.m. (6:00) is the third or night shift. An employee will be notified of a shift change 48 hours in advance. A-3 The normal work week shall be forty (40) hours from the start of the first shift on Monday morning to the end of the shift on Friday. A-4 Additional shifts and/or changes in shift hours may be negotiated from time to time during the term of this Agreement. Any new schedules and shift hours shall conform to the provisions for eight (8) hours per day and forty (40) hours per week, unless otherwise mutually agreed in writing by the Company and Union following prior discussion by the parties of the need for these new schedules and the details as to how they shall operate. A-5 10 HOUR SHIFTS 10 hour shifts may be implemented by mutual agreement in the metal processing or any other part of the operation, subject to the following terms: a) The shift shall follow a Monday to Thursday rotation and for afternoon shift only, during the hours of 2:15 PM to 12:45 AM. 30

31 b) Except as directed inf) below, any hours worked outside these scheduled hours shall be subject to the overtime provisions of the collective agreement. c) Afternoon shift premium will be paid for all hours worked during the scheduled hours of work d) There shall be three (3) coffee breaks to be taken in accordance with the following schedule and are subject to the provisions of article ; 4:30 PM 6:30 PM 11:30 PM e) In addition, an unpaid one half (1/2) hour lunch break will be provided at 9:00 PM f) Plant holidays will be observed on a date that is mutually agreeable between the parties. Employees will receive holiday pay in accordance with Article 21 of the collective agreement. In addition, employees who are working the 10-hour shifts will be entitled to make up the additional two (2) hours during the work week in which the holiday falls. Such hours worked shall be at straight time. A-6 The weekly manning schedule will be posted not later than Thursday of each week. 31

32 APPENDIX "B" -JOB TITLES AND CLASSIFICATIONS 2 Temporary Student Employee Any student working in a position above Job Class 5, will be paid the rate for the position they are working less 10%. 4 Helper-Machine and Warehouse Months 1 throuqh 6 5 Helper-Machine and Warehouse Months 7 throuqh 12 6 Warehouse Helper Months 13 through 18 - a precondition for progression to Warehouseperson/Material Handler. Machine Helper After 12 months 8 Warehouseperson/Material After 18 months Handler Machine Helper Able to satisfactorily operate machine on their own Truck Driver Months 1 through 6. Operates Company delivery trucks on public roads. Possesses valid driver license applicable to vehicle. 9 Truck Driver After 6 months. Operates Company delivery trucks on public roads. Possesses valid driver license applicable to vehicle. Shipper Months 1 through 12 Operator Laser Months 1 through 12 Operator Shear Months 1 through 12 Operator M20 Saw Months 1 through 12 Operator Torch Months 1 through 12 Operator Brake Months 1 through 12 32

33 10 Truck Driver Possesses Class 1 license and able to perform delivery/pickups operating Company tractor/trailers Shipper Operator Shear Operator M20 Saw After 12 months After 12 months After 12 months Operator Torch Months 13 through 23 Operator Brake Months 13 through 23 Operator Laser Months 13 through Operator Torch After 23 months Operator Brake After 23 months Ooerator Laser After 23 months Notes: Note 1 The time periods listed above for Job Class progression purposes are not cumulative in nature. They are consecutive to one another on the basis of worked service in the Job Class from the time a worker commences working in either the Metals Processing, or Warehouse Job Classes. Note 2 A worker shall progress to the next Job Class designated either at the expiration of the time period stipulated above, or earlier, provided in both situations the worker satisfactorily demonstrates to management his ability to meet all the Job Class prerequisites as determined by the Plant Manager for the particular Job Class. All such Job Class prerequisites and any amendments shall be communicated to the Union and applicable employees by the Company. The Employer will make every effort to provide each employee with the opportunity to train in job tasks that will lead to progression. LEAD HANDS: A Lead Hand will be selected, as required, based upon his possessing the following prerequisites: work experience competence leadership ability and his prime responsibilities shall entail: Assistance, advice and direction of other employees in their work routine, to a high quality production standard; direction of other employees in the efficient and safe completion of their assigned jobs; assurance of the quality of work produced by the employee being directed. 33

34 In the event that the Warehouse Superintendent or Foreman determines that a Lead Hand is necessary, he may appoint a qualified employee to fill the position on either a temporary or permanent basis. The employee so appointed will be paid at a level of two (2) Job Classes above his own Job Class while so assigned. TRACTOR TRAILER DRIVERS: The Company will bear the cost of annual medical examinations, and will provide the necessary time off without loss of pay, in order that Class # 1 driving licences are maintained in good standing. (c) ALL OTHER TRUCK DRIVERS: During January of each year, the Company will require all other truck drivers to undergo a complete medical examination. The Company will bear the costs of such examination and will provide the necessary time off without loss of pay. Driving licences must be maintained in good standing. 34

35 APPENDIX "C" -STANDARD HOURLY WAGE RATES Job Effective Effective Class September 1, 2012 September 1, % 3.5% 1 $15.71 $ $16.51 $ $17.35 $ $17.59 $ $20.58 $ $24.32 $ $24.90 $ $25.36 $ $25.80 $ $26.25 $ $26.59 $ $27.04 $ $27.38 $ $27.69 $

36 APPENDIX "D" -PENSION PLAN FOR UNION EMPLOYEES This pension plan for Company employees, members of Local 5663 of the United Steelworkers of America, is provided by a pension plan agreement negotiated between the Company and the Union. There is no contribution by the employees, as the plan is financed by the Company. The following is a capsule summary of the pension plan text: ELIGIBILITY PAST SERVICE EMPLOYEE CONTRIBUTION NORMAL RETIREMENT EARLY RETIREMENT DISABILITY RETIREMENT NORMAL PENSION EARLY RETIREMENT REDUCTION precedes normal retirement date. DISABILITY INCOME VESTING DEATH BENEFIT Upon attaining Seniority Included Nil Age65 Age -55 Service - 10 years Company Approval - No Age Service Company Approval - Nil - 20 years - No Pension per month per year of Effective Date: service November 1, 2012* $49.00 September 1, 2013 $50.00 *first day of the month following date of ratification. %% for each month that early retirement Nil. 2 years continuous service. Before retirement nil After retirement nil, unless an optional form of pension is elected. 36

37 APPENDIX "E" -HEAL TH AND WELFARE BENEFITS PROGRAM The Company shall contribute to the Steelworkers Health and Welfare Trust Fund of Alberta at the following rate per hour for each and every hour worked by an employee in the bargaining unit. The Company shall not deduct such contributions or any portion thereof from an employee's wages, except as hereinafter provided. All Company's contributions are in excess of the wage rates set out in this Agreement, and do not constitute a payment of wages or any portion of payment of wages. All employees in the bargaining unit shall also contribute at the following rate per hour for each and every hour worked. Such employee contributions shall be deducted from the wages by the Company at the same time as wages become due. Effective Date November 1, 2010 (First working day following ratification) Company Contribution Per Hour Worked $1.85 Employee Contribution Per Hour Worked $0.15 Upon the wages of an employee becoming due, the said above contributions and the deductions shall be calculated by the Company, and set aside for the Trustees of the said Fund, and the gross contributions of the Company and deductions from employees for all hours worked by all employees in the bargaining unit in a month shall be forwarded by the Company to the said Fund at # 150, 2880 Glenmore Trail, S.E., Calgary, Alberta, T2C 2E7, no later than the fifteenth (15) of the month following. It is understood that the contributions and deductions negotiated under this clause are for the benefit of members of the Union as recognized by the Trustees of the said Fund, who shall have full discretion to make from time to time reasonable rules in this respect. This plan provides Group Life Insurance, Accidental Death & Dismemberment, Weekly Indemnity, Dental Insurance, Major Medical and Alberta Health Care Coverage. This program is administered solely by the Union. Details of the plan are described in a separate booklet made available upon request from the Union. 37

38 APPENDIX "F" -SENIORITY LIST 18 October, 20l2 Tulli f.a. :ii :saw. M2o- Dr1Yer laser D»La:s er Gtou~. MPC Lo 1st1 ci, MPC: \ivarehouse pate--ofhjre 3i March,f977; 25' r M 1989 D. ALead MPC D -arake;: MPC. ~ '.~rane:-soo 9" TriJ6k Driver SI. ~ Driver ~ Crane 200 warefrbuse D Laser MPG. oii~ferto.w 0 ofebil'.la'r 200 Ofi Feri-oUs t3 FebrUar : r1j' 2006 a. $25"36 MsCh111e :Hel -er- s s \ 25.:36 Wareh seman.8 S :is.36: Machfne Hel er a D fv!dch1ne:hei er MPG' D crane 600Y7DO ie Miiffi1ne. He1 er D BarB MPC warehouse W8r.eih0\Jse 0 :Bar B"a Watehou D sail! -w_areh6u~ lo i~_ttc~ 11J0.ctobet, 201 fg Qctober--26' -Z2 Fe-brua r, 20.1 c21 Se" tember. 2 _14. N_Qv.em\)er, 38

39 i18u8setu~1s ~ ~ ~~ 18 October/2012 Seoladl NillM'.am!We..eosJtklll Ml fas~ lill!yl1. Dale!l:f Bice 9 S~:S:,sef Torch 0-perator 9 D M.;J6xy M'PC i~ Decembef/2'thi.6 $24;32 Watiihousema'n 6 D Bar'Bay Watehouse OS.F.ebf'uary, ~ $:25:-36 Warehouseman 8 D CranesOO Warehouse ''06:Fe bruaiy: $25'36' wareho0sero.art s D -Ba"r BaY -warehouse -21 Febt.varv :36 warehouseman 8 D Bar: Bay Warehouse -14 tvi~wj :

40 APPENDIX "G" - GRIEVANCE REPORT GRIEVANCE REPORT DATE local NUMBER GRIEVANCE NUMBER ME{v1_BER'S NNylE_ ClOCK NUMBER COMPAl'IY DEPARTMENT -SUPERVISOR WHEN DID GRIEVANCf OCCUR? DAIE!On btobo111) TIME~~ GRIEVANCE- REPORTED-BY * 3 '91_' The Uhl on chcirges the Com pony wi!h Q specific. violation of Artide (s) ond qny other provlslons of the Aare;emenl thot may be fmmd to apply, Plus!he Un\on demands 1riOt the Company cease and desist from violotjng the Collective Bargolning-Agreern(tl:nl,./bot the incident(s) be rectified, that prop~r compensation, including benefits ond oye_rtir:,oe, at Jhe applicable rate of pay, be paid for all.losses; ond Jun her that tho~e o"ffected b.e _mode wh:ole!n ev,er:y:resp_ed, including interest on ony-monie s owed. ( S!GNATUR.E FOR THE UNION SIGNATURE FOR ihe COMPANY SIGNATURE FOR THE.UNION. 40 SIGNATURE FOR THE COMPANY 40

41 APPENDIX "H" - TEMPORARY STUDENT EMPLOYEES It is agreed that the following list of principal points form the basis of our policy concerning the hiring of students for summer holiday relief: 1. Temporary labour is obviously required while regular employees are absent on vacation. These openings do not offer the prospects of long-term employment. It is therefore appropriate to hire students during the summer vacation period. The summer vacation period will be defined as May through September. 2. No student shall be hired until all regular employees with seniority on layoff have been recalled. 3. The maximum number of students shall be equal to the number of regular employees away on vacation at any one (1) time during the summer holiday season. 4. Students hired for temporary work shall not be permitted too bid on posted permanent job openings, and shall not accumulate seniority. In the case of a student transferring to permanent employment, his seniority will count from the date of employment, subject to completion of the probationary period. Notwithstanding this, in accordance with Appendix D of this agreement, such student transferring to permanent employment shall not receive any credited service as a member in the Pension Plan for the period he was employed as a student by the Company. Having successfully completed the probation period, a student transferring to permanent employment shall have the benefit of all other rights and privileges befitting his membership in the bargaining unit. 5. Student employees shall sign up in the Union and the Steelworkers Health & Welfare Trust Fund, on the same basis as a regular employee, and be paid on the same basis as a regular employee. 6. Temporary student employees hired as potential regular employees will be given first opportunity to fill vacancies, but this does not include any vacancies caused by or as the result of emergency situations. 41

42 LETTER OF AGREEMENT Humanity Fund The Company, upon receipt of a properly signed authorization form from the employees, agrees to deduct on an annual basis the amount of not less than twenty dollars ($20.00) from wages of all employees in the bargaining unit in the first pay period of October of each year. Such amount to be deducted shall be paid to the "Humanity Fund" and forwarded to the United Steelworkers of America National Office, 234 Eglinton Avenue East, Toronto, Ontario M4P 1 K7. Further, the Company agrees to advise in writing both the Humanity Fund at the aforementioned address, and the Local Union that such payment has been made, the amount of such payment and the names of all employees in the bargaining unit on whose behalf such payment has been made. All employee deductions are voluntary and may be cancelled upon request. The Union shall save the Company harmless for all amounts deducted from employee's wages in accordance with the above. IN WITNESS WHEREOF the parties have executed this Letter of Agreement this I 3-t1--.- day of i\~l-6-"1~ ~ ~, RUSSEL METALS INC. CALGARY, ALBERTA UNITED STEELWORKERS OF AMERICA, LOCAL UNION 5663 CALGARY, ALBERTA Keith Turcotte Doug?c'K:arney Mike Newcombe Bruno Baseotto 42