AGREEMENT. between. BUCYRUS BLADES OF CANADA LIMITED (hereinafter referred to as "the Company") and

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1 .. \.... "... b ;;;..;- 'D3,_E!VEG DEC cph AGREEMENT AlE No. S- o;l./ b CERT. AlE e I b3- /9 9/- CERT.DATE TOTALEMPS EFF. DATE EXP.OATE COOING CONTROL IOENTCOOEO DATE CODEn between RECEIVED De-c- n{ o '2- UNION EMPLOYER OTHER BUCYRUS BLADES OF CANADA LIMITED (hereinafter referred to as "the Company") and UNITED STEELWORKERS OF AMERICA (hereinafter referred to as "the Union") OFFICE OF Effective: July 1,2002 DEC Expiry: June 30, 2004 COLLECTIVE BARGAINING INFORMATION

2 3. This AGREEMENT made this13th day of November, 2002 BETWEEN: BUCYRUS BLADES OF CANADA LTD of the Town of Lindsay, in Ontario, (hereinafter referred to as the ~~company") OF THE FIRST PART -and- UNITED STEELWORKERS OF AMERICA {hereinafter referred to as the "Union") OF THE SECOND PART WHEREAS the Company and the Union desire to cooperate in establishing and maintaining conditions which will promote a harmonious relationship between the Company and fair and amicable resolution of disputes which may arise between them and to promote efficient operation. NOW THEREFORE, THE UNION AND THE COMPANY MUTUALLY AGREE AS FOLLOWS: ARTICLE 1 UNION RECOGNITION 1.01 The Company recognizes the Union as sole and exclusive bargaining agent for all plant employees employed at Bucyrus Blades of Canada Ltd., Lindsay, Ontario excluding foremen, those above the rank of foreman and office personnel {a) Foremen and those above the rank of foremen shall not be assigned to nor work on any jobs which are included in the bargaining unit except in cases of: (i) (ii) (iii) (iv) (v) (vi) training; investigation; inspection; experimentation; emergencies, including machine repair where regular employees are not available, and the circumstances described in. The Company may not have more than one {1) foreman (unless the Bargaining Unit falls below ten (1 0) employees in which case the "one" shall become "two") perform work in accordance with the current practice existing at the time of signing this Agreement. At no time will there be more than one (1) working foreman, regardless of the number of shifts instituted by the

3 5. (d) Plural and Singular- when the plural is used it shall also mean the singular, where applicable. ARTICLE 3- RESERVATION OF MANAGEMENT RIGHTS 3.01 The Union recognizes and acknowledges that the management of the operations and the direction of the working forces are fixed exclusively in the Company and without limiting the generality of the foregoing the Union acknowledges that it is the exclusive function of the Company to: (a) (c) maintain order, discipline and efficiency and in connection therewith; to make, alter and enforce from time to time reasonable rules, regulations, policies and practices to be observed by its employees; terminate the employment of an employee in accordance with the terms of this Agreement; discipline or discharge employees for just cause; select, hire, transfer, assign to shifts, promote, demote, classify, lay-off or recall employees and select employees for positions excluded from the bargaining unit; operate and manage the business in all respects in accordance with the Company's commitments, obligations and responsibilities including the right to determine the extension, limitation, curtailment or cessation of operations, discontinuance of shifts, products and services to be rendered, selection and use of material required by the Company; determine job content, establishment of work or job assignments, decide the number and type of employees needed by the Company at any time The foregoing enumeration of management's rights shall not be deemed to exclude other functions not specifically set forth. The Union therefore recognizes and acknowledges that, in all respects, the Company retains, solely and exclusively, all rights, powers and authority to operate its business not otherwise specifically and expressly covered in this Agreement The Company agrees that it will not exercise its functions in a manner inconsistent with the express provisions of this Agreement. ARTICLE 4 - NO DISCRIMINATION 4.01 The parties agree that there shall be no intimidation, interference, restraint or coercion exercised or practised by them or their representatives upon employees because of membership or non-membership in the Union 4.02 The parties agree to abide by all of the applicable statutes of the Province of Ontario and of Canada.

4 The Union agrees that there shall be no solicitation of members or other Union activities on the premises of the Company (except during lunch breaks, before or after shifts or during coffee breaks), but in no case will the ongoing operations of the business be disrupted. It is understood and agreed that no meetings of the Union or its members will be held on the premises of the Company at any time without the prior written approval of the Company. A request by a staff representative of the Union for access to the Company's premises for the purpose of consulting with the steward with regard to Union matters of an employee who has a grievance, of the Company, shall not be unreasonably withheld. Such consultations shall be in a place designated by the Company and time taken shall not unduly disrupt operations. The Company agrees to provide a bulletin board in its premises for the use of the Union. Nothing shall be posted on the bulletin board without prior approval of the Company expressed by the initials or signature of the Plant Manager or his delegated representative File cabinet provided and access to copy machine with management approval. ARTICLE 7 -STRIKES AND LOCKOUTS 7.01 The Union agrees that there shall be no strikes, stoppages of work, or slowdowns during the life of this Agreement The Company agrees that there will be no lockout of employees during the life of this Agreement. ARTICLE 8 - PROBATIONARY PERIOD 8.01 An employee shall be considered a probationary employee until he has completed a total of sixty (60) days worked with the Company. It is expressly understood by both parties that during the probationary period an employee shall be considered as being employed on a trial basis and may be discharged at any time at the sole discretion of the Company and any such discharge shall be deemed to be for just cause. The discharge of a probationary employee shall not be the subject of a grievance and/or arbitration pursuant to this Agreement. ARTICLE 9 - GRIEVANCE PROCEDURE 9.01 It is the mutual desire 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 any time, without recourse to the grievance procedure herein.

5 Written decisions arrived at between the Company, the employee and the Union on the disposition of any specific grievance shall be final and binding upon the Company, the Union and the employee or employees concerned. ARTICLE DISCHARGE AND TERMINATION OF EMPLOYMENT _ Excep_t in_ cases of dismissal for cause (where no notice need be given), the Company, when it terminates or permanently lays off an employee who has completed the probationary period shall give the employee two week's notice of termination or shall pay the employee wages, at regular rates, in lieu of the period for which notice was not given, all based on the employee's regular hours of work in the applicable period The Company shall have the right to discharge an employee for just cause in the presence of his Steward. An employee who is discharged for just cause shall have the right to grieve. It is further understood that the provisions of this Article are not restrictive of the Company's right to discharge an employee for other reasons which constitute just cause Where an employee is reprimanded, suspended or dismissed, the disciplinary action taken will be given in the presence of a Steward and recorded in writing and a copy will be given to the Shop Steward in the plant, or in his absence, a copy of the disciplinary notice will be mailed to the Union office by registered mail Unless otherwise agreed between the Union and the Company in writing, a written warning will be removed from an employee's personnel file after a period of twelve (12) months from the date of issuance, provided that the employee did not receive any further warnings or other discipline on account of any offence meriting discipline within the twelve (12) month period. If further warnings or discipline is imposed, then the record remains intact until the record is clear of disciplines for twelve ( 12) months. ARTICLE 11 ARBITRAl"ION When either Party to this Agreement requests that a grievance be submitted for Arbitration, they shall make such request in writing addressed to the other Party to this Agreement The Arbitration Procedure incorporated in this Agreement shall be based on the use of a single Arbitrator The grieving Party shall submit a list of five (5) arbitrators for consideration. If none of the five (5) are chosen, then the other Party shall within one (1) week of the date of the first list, submit a list of 'five (5) different names for consideration. If none are selected, either Party may ask the Ministry of Labour to make an appointment.

6 All hours worked in excess of the normal daily hours (eight (8) or ten (1 0) as the case may be) shall be paid for at the rate of time and one-half (1 Y2 ) the regular straight time hourly rate of pay paid to the employee. Not withstanding the foregoing, any time worked by a full-time employee on a Saturday shall be paid at the rate of time and one half (1%) the employee's regular rate, and on Sunday, two (2) times the regular rate of pay There shall be no pyramiding of overtime and therefore overtime will not be paid under more than one provision of this Agreement Minimum Call-In A full-time employee required to report.for work on any given day and who does report for work, for whom there is no work available, shall be guaranteed at least three (3) hours pay at his regular straight time hourly rate for that day. This shall not apply in cases where the said employee was previously notified not to report to work or where there is unavailability of work due to act of God, fire, flood, power failure or other conditions beyond the control of the Company. To qualify for payment under this provision, employees must have their current address and telephone number on file with the Company Night Shift Premium A night shift premium of forty-five (45)cents per hour shall be paid for work performed on night shifts after 2:30 p.m. on any day and before 7:00 a.m. of the following day. In no case shall this premium be paid to employees working on day shift who are working overtime. Premiums are not considered to be part of an employee's regular straight time hourly rate. A midnight shift premium of fifty-'five (55) cents per hour for work performed after 11 :00 p.m. and before 7:00 a.m Assignment of Overtime (a) Overtime work shall be on a voluntary basis and shall be distributed as equitably as possible among the employees capable of performing the work. Where overtime is offered and there are insufficient qualified volunteers, as outlined in (a), then the Company retains the right to require employees to work the overtime, starting with the most junior employee who is readily available and able to perform the tasks required in a satisfactory manner and continuing in reverse order of seniority until sufficient employees have been assigned Call Back An employee who has already left the Company's premises after completion of his regular shift and who is called back to work non-scheduled overtime, provided the employee reports to work, shall be paid a minimum of three (3) hours at the applicable overtime rate. This clause does not apply to overtime worked by the employee which is continuous to his normal hours of work where he was notified of such overtime requirement prior to completing his regular "shift".

7 Notwithstanding anything contained in this Article, an employee is not entitled to pay for a statutory holiday on which he does not work where: (a) He has not earned wages for at least twelve (12) days during the thirty (30) calendar days immediately preceding the statutory holiday; or He did not work his regularly scheduled working day immediately preceding or following the statutory holiday, unless absent with the Company's consent If a statutory holiday falls within an employee's vacation period, then the employee shall either receive an extra day's vacation or be paid an extra day's regular wages. ARTICLE 15 - VACATIONS Vacation entitlement shall be based on full years of continuous service as a regular full-time employee, as follows: (a) two (2) weeks (ten (1 0) working days) after one (1) year but less than five (5) years of continuous service; (c) three (3) weeks (fifteen (15) working days) after five (5) years but less than twelve (12) years of continuous.service., ~... four (4) weeks (twenty (20) working days) after twelve (12) years of continuous service Vacation pay for each of the vacation periods referred to in above shall be based on: (i) four (4%) percent, six (6%) percent or eight (8%) percent of the gross wages earned and paid to the employee in the twelve months preceding the last pay period in June Vacations may not be accumulated from year to year without the written approval of the Company Employees may not, without the permission of the Company take less than one week or more than two consecutive weeks of vacation at any time Vacation time shall be granted by the Company so as to interfere least with the continuance of operations. The vacation schedule shall necessarily conform to the requirements of the business. The Company reserves the right to designate a general plant shutdown for vacation purposes for all employees. The Company shall provide as much advance notice as possible of a plant vacation shutdown but, in any event, the minimum notice given shall not be less than thirty (30) days. The Company shall follow the principle of seniority in giving first choice of vacation or vacation periods to senior employees but in the event this provision comes into

8 15. the Company or without providing the Company with a satisfactory reason, in which case the employee shall be deemed to have quit voluntarily; or (d) after obtaining an authorized leave of absence, he fails to report to work at the expiration of his leave of absence, unless the employee has a reasonable excuse for failing to report; or (e) after having been on continuous lay off for the lesser of twenty-four (24) months or the length of an employee's seniority; or (f) if, while on an authorized leave of absence, the employee takes employment elsewhere, unless he obtains the written consent of the Company. (g) As to recall from lay-off: (i) (ii} if the employee is not working elsewhere and cannot be contacted personally, he must return to work within three (3) days of the receipt of a notice to report, by registered mail; if the employee is working elsewhere, he must return to work after completing his required notice to his current employer as per the Employment Standards Act, but in no case in excess of two (2) weeks. However, he must give notice of returning to work within two (2) days of being contacted personally or of receipt of notice to return by registered mail. NOTE: In order to qualify for recall, it shall be the responsibility of the employee to keep the Company advised, at all times, of his current address and telephone number. (h) if he retires (a) The Parties recognize that job opportunity and security shall increase in proportion to length of service. It is therefore agreed that in all cases of vacancy, promotion, demotion, transfer, layoff, recall after layoff, and shift preference, senior employees shall be entitled to preference, provided they can perform the job in a competent manner after a thirty (30) day training period. (c) Lay-off and Recall: In cases.of lay-offs on account of seasonal adjustments or lack of work, the Company shall give ten (10) working days written days notice of lay-off or wages in lieu thereof at regular rates. No notice of lay-off need be given where the operation is shut down due to an act of God. Further, where as a result of lack of material, machinery breakdowns or other reasons beyond the Company's control, temporary lay-offs become necessary and the lay-offs do not exceed one week in duration, the individual employees affected can be laid off without notice. It will be the foreman's or supervisor's responsibility to notify the employees

9 17. to return to the bargaining unit or are returned by the Company during the six (6) month period, they shall be returned to the job classification and department held by such employee immediately prior to such transfer. No employee subject to the above may return to the bargaining unit once the six (6) month period has expired, other than as a new employee. ARTICLE 18 UNIFORMS The Company will continue its current practice of providing uniforms to employees and uniforms will be laundered at the Company's expense. It is understood an employee must return uniforms supplied by the Company on leaving the employ of the Company, reasonable wear and tear excepted. Any employee not returning uniforms supplied shall h~ve the cost of replacing the uniform deducted from any outstanding wages owing to him at time of termination. The Company accepts the obligation to replace worn-out uniforms, but uniforms lost or damaged due to an employee's carelessness are the responsibility of the employee and the employee must pay for the cost of repairing or replacing the uniform. The wearing of uniforms or aprons is at the employee's option, however safety will not be compromised. ARTICLE 19 SAFETY AND HEALTH Safety Boots The Company shall reimburse employees $ over the life of the Collective Agreement for the cost of safety boots, provided the safety boots meet the Company's reasonable safety specifications and a receipt(s) is/are provided Equipment Safety glasses, gloves and hearing protection will be provided by the Company at no cost to the employee. The Company will give an allowance of up to $ per year, for prescription safety glasses or replacement lenses, upon submission of proof of purchase (a) The Company agrees to a Joint Safety Committee comprised of one (1) employee representative and one (1) Company representative. This Committee shall meet at least once every two (2) months, or more often if required, to address or review safety issues. (c) This Committee shall not have jurisdiction over wages or any matter of collective bargaining, including the administration of this Agreement. The Committee may make recommendations with respect to its discussions. The Company and the Union will act in accordance with the Health & Safety Act in the Province of Ontario. Notwithstanding the provisions of the Occupational Health and Safety Act, a worker may refuse to perform any work activity which he has reason to believe is likely to endanger himself or someone else.

10 ,.. entitled to such leave with pay at his regular rate of wages for his normal hours of work. An employee's immediate family shall mean the spouse, parents, children, sister, brothers, father-in-law, mother-in-law of the employee and includes any relative permanently residing in the employee's household or with whom the employee resides. One day leave of absence with pay due to death of grandparents and grandchildren, brothers-in-law and sisters-in-law. The intent of this Article is to minimize a loss of regular wages at a time of bereavement. Therefore, holidays, vacations, leave of absence, illness and regularly scheduled days off shall be taken into consideration and shall reduce, in part or in total, the number of days paid for Jury Duty Leave and Crown Witness In the event an employee who has completed his probationary period is called for jury duty or crown witness duty, the Company shall pay the employee the difference between his regular hourly rate of pay for his scheduled hours of work and the amount the employee receives as jury duty or crown witness duty pay (excluding expenses) for each day the employee is required to absent himself from work in order to serve on the jury or as crown witness, provided the employee reports to work each day he is scheduled to work and is not required to attend at court Union Leave of Absence. Employees who have been elected or appointed by the Union to attend Union conventions or conferences or to other Union business shall be granted a leave of absence by the Company. The Union will notify the Company in writing, as early as possible prior to the start of the leave, of the names of the members requiring leave. Seniority will accumulate during such period. The Company agrees to continue the pay of any employee absent from work on Union business which is not paid for as provided elsewhere in the Agreement, and the.union shall reimburse the Company for such wage payment Negotiating Committee Leave of absence without pay for collective bargaining will be granted to a maximum number of two (2) employees. The Company will pay the absent employee and the Union will reimburse the Company within thirty (30) days. ARTICLE 22 - BENEFITS PLANS The Company shall maintain, for the duration of this Agreement, in their present form or in no less beneficial form the benefits contained in its Dental Plan (increase orthodontia maximum to $1,600.00}, Green Shield Health Plan (semi-private coverage), Optical ($ each family member each two year period), Life Insurance Plan (basic and A.D.& D. - increase to $30, each coverage effective April 1, 1997), for its eligible full-time employees as such eligibility is defined in said Plans. The Company will pay 100% of the premium cost of said Plans. It is understood the Company fulfils its obligation under this provision by maintaining the benefits referred to above and continuing to pay the requisite premiums therefore but in all respects the Plans shall be administered in accordance with the rules and regulations of the Plans.

11 22. GENERAL LABOURER EFFECTIVE START AFTER 3 MONTHS AFTER 6 MONTHS AFTER 12 MONTHS AFTER 18 MONTHS AFTER 24 MONTHS AFTER 30 MONTHS AFTER 36 MONTHS AFTER 42 MONTHS AFTER 48 MONTHS APPENDIX 11 A 11 EMPLOYEES WITH LESS THAN FOUR YEARS SERVICE ON JULY 1ST OF EACH YEAR JULY 1/2002 JULY 1/ SHIPPERILEADHAND/MAINTENANCE I EFFECTIVE START AFTER 3 MONTHS AFTER 6 MONTHS AFTER 12 MONTHS AFTER 18 MONTHS AFTER 24 MONTHS AFTER 30 MONTHS AFTER 36 MONTHS AFTER 42 MONTHS AFTER 48 MONTHS JULY 1/2002 JULY 1/ GENERAL LABOURER EFFECTIVE GENERAL LABOURER EMPLOYEES WITH FOUR OR MORE YEARS SERVICE ON JULY 1ST OF EACH YEAR JULY 1/2002 JULY 1/ SHIPPER I LEADHAND I MAINTENANCE Notes: (1) Wage increases are automatic after an employee has served in the applicable classification for the appropriate length of time. (2) For the purpose of Article and on promotions, employees shall receive the rate of pay for the classification in which he is relieving or to which he is promoted at the same increment level he was receiving in his regular or former classification. (3) Leadhand positions to be posted. (4) The Company agrees to pay each employee fifty dollars ($50.00) each December 15th as a Christmas bonus.

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