COLLECTIVE AGREEMENT. between HOBART FOOD EQUIPMENT GROUP CANADA. (A Division of ITW Canada Inc.) OWEN SOUND, ONTARIO

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1 1 COLLECTIVE AGREEMENT between HOBART FOOD EQUIPMENT GROUP CANADA (A Division of ITW Canada Inc.) OWEN SOUND, ONTARIO (hereinafter referred to as the Company ) and THE INTERNATIONAL ASSOCIATION OF MACHINISTS and AEROSPACE WORKERS AND ITS LOCAL 386 (hereinafter together referred to as the Union ) Termination Date January 3, 2017

2 2 INDEX Contents Article Page Annual Vacation with Pay Arbitration Bereavement Discharge and Discipline Cases Grievance Procedure 9 9 Hours of Work Jury Duty Management Rights 3 4 No Discrimination 6 6 No Strikes or Lock-outs 5 6 Overtime Pay on Day of Injury Posting Notices Purpose 1 3 Recognition 2 3 Reporting for Work and Call-In Rest Period Safety & Health 8 8 Seniority Shift Premium Statutory Holiday Termination Union Representatives 7 6 Check-Off 4 5 Wages Wash-Up Period Welfare Labour Grades & Job Classifications 33 Schedule A-1 Progression Schedules 34 Schedule A-2 New Hires 36 Schedule B Insurance Premiums 38 Letters of Understanding 39-43

3 ARTICLE 1 - PURPOSE 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 represented by the Union, and the means by which complaints, grievances and disputes shall be disposed of promptly and equitably. ARTICLE 2 - RECOGNITION 2.01 The Company acknowledges and accepts the Union as the sole collective bargaining agency for its employees at its Owen Sound Plant, Bay Shore Road, with the following exceptions: a) Production Co-Ordinators, persons above the rank of Production Co-Ordinator, office staff, factory, clerical staff, sales staff and engineering department staff. b) Persons employed as casual labourers for the purpose only of loading, unloading trucks or making space, provided however that no such persons will be employed by the Company while members of the bargaining unit with seniority who are willing to perform such work are on layoff. c) Employees of supplier companies who deliver and manage production inventory and expense items up to the point of use Non-bargaining unit employees shall not perform the duties normally performed by employees in the bargaining unit. This shall not; however, apply in emergencies nor to research, developmental or experimental work, nor to work done by non-bargaining unit employees in the course of the instruction or training (b) Non-bargaining unit employees shall not perform the duties normally performed by employees in the bargaining unit if the performance of such duties results in the direct, permanent layoff of one or more bargaining until employee.

4 4 ARTICLE 3 - MANAGEMENT RIGHTS 3.01 The Union acknowledges that it is the exclusive function of the company to hire, promote, demote and transfer employees and also the right of the company to discipline or discharge any employees for reasonable cause, provided that a claim by an employee that they have been discharged or disciplined without reasonable cause may be the subject of a grievance and dealt with as hereinafter provided The Union further recognizes the right of the Company to operate and manage its commitments and responsibilities. The location of the plants, the products to be manufactured, the schedule of production, the methods, processes and means of manufacturing are solely and exclusively the responsibility of the Company. The Company also has the right to make and alter from time to time rules and regulations to be observed by the employees, provided that they are not inconsistent with the provisions of this agreement Production Standards It is recognized for the Company to be competitive and to establish accurate costs, overall production standards must be established. It is the Company s responsibility to establish the methods and generally accepted production standards by using good industrial engineering techniques. The employees will be required to follow the prescribed method and to meet the generally accepted production standard. The production standards will be changed whenever there is a significant change in method, procedure, speeds, feeds, tooling, material or quality level. Clerical or technical errors in application or calculation will be corrected immediately upon their discovery. Production standards will be established on the principle of a fair day s work of an average, normal, trained operator. If an employee feels a production standard is incorrect and after giving it a fair trial, they may request a review through the grievance procedure. In order for the Company and the Union to have a better understanding of the production standards program, the Company will familiarize, at its expense, the Shop Committee and the stewards.

5 5 At the request of either party, there will be meetings between the company and the shop committee to discuss the production standards program Joint Training For the purposes of the joint training program, the bipartite skill enhancement committee will have the function to develop, organize and recommend skills training and/or apprenticeship programs. Union and management will meet to resolve any conflict between this program and any other training program. The collective agreement will supersede the Joint Training Program. Either party shall have the right to withdraw their participation if the program is not following the spirit or intent of Joint Training Plant Closure In the event the Company determines to close or partially close its operation in Owen Sound, the Company will immediately meet with the Union for the following: 1. Determine the numbers affected in the bargaining unit. 2. Provide for a joint committee through consultation and agreement with the Union. The said committee will act as an employee assistance committee for future concerns such as employment opportunities, EI, tax and health issues and pension responsibilities. 3. Negotiate a severance package for all employees. All of the above will be conducted during the workday or week and shall be company paid. ARTICLE 4 CHECK-OFF 4.01 The Company will deduct the amount of regular monthly union dues from the pay of each employee in the bargaining unit. Dues deducted shall be remitted to the Local Union, together with an alphabetical listing showing the names of the persons from whom deductions were made, both monthly and year-to-date totals and reasons why no deduction taken, not later than the twentieth day of the month in which the deductions were made.

6 6 ARTICLE 5 - NO STRIKES OR LOCK OUTS 5.01 The company agrees that there shall be no lock out of its employees, and the Union agrees that there shall be no strikes or other interruption or interference with production. ARTICLE 6 - NO DISCRIMINATION 6.01 The Union shall not use coercion or intimidation or discriminatory action in the soliciting of union membership The Company agrees that there will be no discrimination or cause any loss of seniority or of employment because of union activity Both parties agree that complaints of harassment and/or discrimination as described under the current Ontario Human Rights Code will be dealt with expeditiously. ARTICLE 7 - UNION REPRESENTATIVES 7.01 Stewards The Union may designate, and the Company will recognize shop stewards for such work areas as are agreed by the parties to be reasonable and proper Shop Committee The Company will recognize a Shop Committee of three employees. On being given four (4) days notice in writing, along with an agenda of matters to be discussed by the party desiring the meeting, Company representatives and the Shop Committee will meet once per month. Additional meetings may be scheduled by mutual agreement Negotiating Committee The Company will recognize a Negotiating Committee of three employees. The sole function of this committee will be negotiating the renewal of this agreement.

7 7.04 General 7 Upon receiving the permission of their Production Co- Ordinator and the Production Co-Ordinator of any department they intend to enter, the Chairperson of the Shop Committee, or their designate, or any steward will be allowed to leave their work for a reasonable period of time in order to deal with complaints or grievances or matters arising out of the collective agreement. A Production Co- Ordinator s permission shall not be unreasonably withheld. The employee concerned shall report back to their Production Co-Ordinator before resuming work These privileges will be exercised in such manner as will promote good order and shop discipline and with the least possible interference with regular duties Conduct of union affairs or any union business on company premises or time is prohibited unless specifically authorized by this agreement or by the Company New Employee Orientation This will acknowledge that the Company agrees to the President or his/her designate conducting a new employee orientation for employees hired under the collective agreement. It s agreed that the Company will provide a suitable area to conduct the orientation. It s further agreed that this orientation will require approximately one hour and that the following will be covered: collective agreement terms, role of the union and its responsibilities, overview of various legislative acts, members rights and responsibilities, local lodge meetings, educational opportunities, negotiating process and executive/steward introductions. It is further understood that this orientation will be conducted on a group basis, where applicable, versus one new employee at a time. Such orientations will take place at a mutually agreed time and within the first thirty days.

8 8 ARTICLE 8 - SAFETY AND HEALTH 8.01 The Company agrees that it will continue to provide proper sanitary facilities throughout the plant, and the Union agrees fully to co-operate in maintaining all facilities in a clean and sanitary condition Safety and Health conditions shall be maintained in all working areas in accordance with applicable provisions of the law of Ontario. The Union agrees to assist in assuring full observance of all necessary safety rules The Company will recognize a Plant Safety Committee comprising four members of management and four employees selected by the Union. The Plant Safety Committee will meet once a month or as otherwise mutually agreed. The function of the Committee shall be as specified in The Occupational Health and Safety Act Effective date of ratification the Company will contribute $ towards the cost of not more than one pair of approved safety shoes per calendar year for each employee upon provision of appropriate documentation. The wearing of safety shoes is compulsory Safety Glasses a) The Company will, upon ratification, contribute $ towards the first pair of prescription safety glasses for employees who wear regular prescription glasses. The employee will pay for the examination, and also for breakage and damage that is not covered by Workplace Safety & Insurance Board, hereafter known as WSIB. b) The Company will supply the first pair of planos to employees who do not wear regular glasses. The planos will remain the property of the Company. The Company will also supply replacements but the employee will be required to reimburse the Company for the cost if the replacement is occasioned by breakage or damage not covered by WSIB. c) All employees must wear safety glasses while in the factory. Signs to that effect will be posted at appropriate places.

9 9 d) For employees who have been supplied with the first pair of prescription safety glasses and who subsequently require a prescription change, the Company will not more than once in any twelve month period, contribute as outlined in Section 8.05 (a) above toward the replacement cost of new glasses upon the presentation of a medical certificate by the employee s eye doctor verifying the prescription change. e) All safety glasses provided under this article must have hard side shields and the wearing of side shields is mandatory The Company will supply custom hearing protection once every 5 years. ARTICLE 9 - GRIEVANCE PROCEDURE 9.01 It is agreed that all grievances shall be taken up as promptly as possible after the matter of occurrence giving rise to such grievance It is the mutual desire of the parties hereto that complaints of employees shall be adjusted as quickly as possible, and it is generally understood that an employee has no grievance until they have first given their Production Co-Ordinator or immediate supervisor an opportunity of adjusting their complaint. Step No. 1: If an employee has any complaint or question which they wish to discuss with the Company, they shall take the matter up with their Production Co-Ordinator, and they may be accompanied by their steward if they request such assistance. All grievances must be lodged within the five (5) working days immediately following the matter or occurrence giving rise to the grievance, or the date on which such matter or occurrence comes to the notice or should have come to the notice of the party grieving. The Production Co-Ordinator shall give an answer within two (2) working days. If the grievance is presented in writing the answer shall be in writing. Failing a satisfactory settlement:

10 Step No Step No. 3 Step No. 4: The matter will, within two (2) working days of the date of the Production Co-Ordinator s reply at Step No. 1, be submitted in writing by the Shop Committee to the Human Resource Manager who shall give their answer within three (3) working days. Failing a satisfactory settlement at this stage: The grievance will, within (3) working days of the date of the Human Resource Manager s reply at Step No. 2, be submitted in writing by the Shop Committee to the Plant Manager, or their designate, and a meeting shall be arranged between the parties and held within a further five (5) working days to deal with the grievance. At such meeting the International Representative of the Union may be present at the request of either party. The Company shall render its decision in writing to the Union at this meeting if possible. If not possible, the Company shall forward its answer to the Union within five (5) working days after said meeting. Failing a satisfactory settlement at this stage: The grievance will be referred to arbitration upon the request of either party. If arbitration is to be invoked the request for arbitration must be made within thirty (30) days after the grievance has been passed through Step No. 3 above A general claim by the Shop Committee that the Company is in violation of the collective agreement if it affects three (3) or more employees, may be the subject of a grievance provided that such grievance is submitted in writing by the Shop Committee to the Human Resource Manager, and the discussion of the grievance will commence at Step No. 2 above A general claim by the Company that the Shop Committee, its officers or stewards are in violation of the collective agreement may be the subject of a grievance. Such grievance will be signed by the Human Resource Manager or Plant Manager and presented to the Shop Committee, and discussion shall commence at Step No. 2 above.

11 a) When a work standard has been given a fair trial and questions arise as to work content and method to be followed, the operator may request their Production Co-Ordinator to review work content and method to be followed. Should the Production Co-Ordinator need assistance in answering the operator s questions, they will consult with the company s Industrial Engineer(s) in order to provide the operator with answers. b) A member of the Shop Committee may review the data on which the work standard in dispute is based. Such member may copy from the data any pertinent information they may need. c) If the matter is not resolved as a result of the above procedure, a grievance that the standard is not correct may be filed at Step No. 2 of the grievance procedure. d) If the work standard reaches Step No. 3 of the grievance procedure, the Shop Committee may call in a qualified Industrial Engineer. ARTICLE 10 ARBITRATION When either party requests that a grievance be submitted to arbitration, it shall make such request in writing addressed to the other party to this agreement and at the same time nominate an arbitrator The party to whom this notice is served shall within five (5) days notify the other of their agreement or call a meeting to select an impartial arbitrator. If the parties fail to mutually agree upon an arbitrator within a further period of twentyfour (24) hours, they may then request the Minister of Labour for the Province of Ontario to assist them in selecting an arbitrator No person may be appointed as an arbitrator who has been involved in an attempt to negotiate or settle the grievance Each of the parties hereto will bear one half of the expenses of the agreed to arbitrator No matter may be submitted to arbitration which has not been properly carried through all previous steps of the grievance procedure.

12 The arbitrator shall not be authorized to make any decision inconsistent with the provisions of this agreement, nor to alter, modify or amend any part of this agreement The decision of the arbitrator shall be final and binding upon the parties hereto In the alternative the parties by mutual agreement may apply for Mediation/Arbitration under section 50 of the Ontario Labour Relations Act. ARTICLE 11 DISCHARGE AND DISCIPLINE CASES A discharged employee will be given written notice stating the reason for the discharge An employee required to report to the Company for the purpose of being formally disciplined shall be acquainted with the reason therefore and they shall be accompanied by the shop steward unless they desire otherwise. Written warnings shall state the reason or reasons for the warning. When an employee is suspended or discharged, notice of the suspension or discharge will be issued to the employee in writing with a copy to the Chairperson of the Shop committee. The notice shall state the reason or reasons for the suspension or discharge. The suspended or discharged employee will be allowed a brief meeting with a committeeperson or a steward in a location to be designated by the Company prior to their being required to leave the plant All discipline, including warnings, will be removed from the employee s record, and will be considered inactive for further disciplinary action, not later than twelve (12) months from the date of issue unless within the said twelve (12) months, the employee has received further warning or other discipline A complaint against discharge or suspension will be treated as a grievance if a formal grievance is lodged with the Human Resource Director within three (3) working days after the date of discharge or imposition of the suspension. Such grievance will commence at Step No. 2 of the grievance procedure.

13 If a grievance against discharge or suspension is processed to arbitration, the arbitrator will have power to confirm the Company s action or to reinstate the employee with full or partial compensation or provide such other remedy as the arbitrator considers just and equitable. ARTICLE 12 - SENIORITY For the first ninety (90) calendar days of employment, an employee shall be considered on probation and without seniority. Following the first ninety (90) days, seniority shall date from their date of hiring and thereafter seniority shall accrue as provided herein. A probationary employee may be discharged at the sole discretion of the Employer and the discharge shall not be subject to the grievance or arbitration procedure. All probationary employees will become eligible for benefits from the first day following the completion of thirty (30) calendar days of employment, except for dental (6 months) and pension (12 months). Union dues will be paid from first pay period of employment Subject to Section and the other provisions of this agreement, an employee s seniority shall be equal to their length of unbroken service with the Company Seniority Lists Seniority lists for each department and a plant-wide seniority list will be established. Departments for this purpose are: (a) Maintenance, (b) Shipping/Receiving (c) C-Line Assembly, (d) SR/UW Assembly, (e) Service Parts & Accessories / FR, (f) Fabrication, (g) Machine Shop. Stock attendants will appear on and be considered part of their respective department s seniority list Loss of Seniority An employee with less than two (2) years seniority at time of lay-off shall have recall rights for a period equal to their seniority at the time of lay-off but in no case for a period of less than six (6) months. An employee with two (2) years but less than five (5) years seniority at the time of lay-off shall have recall rights for a period of two (2) years from the time of lay-off. An employee with five (5) or more years seniority at the time of lay-off shall have recall rights for a period of three (3) years from the time of lay-off.

14 An employee s seniority will be lost if: a) they lose their recall rights pursuant to Section 12.04; b) they voluntarily leave the employ of the Company; c) they are dismissed for reasonable cause and such dismissal is not reversed through the grievance and/or arbitration procedures; d) they are absent without leave for three (3) consecutive working days without reporting to the Company, unless the failure to report is due to accident, illness or other emergency beyond the reasonable control of the employee and which accident, illness or other emergency is verifiable; e) after having been laid off they fail within four (4) working days after having been given notice of recall (or after the mailing of notice of recall to their last address shown on the Company s records notice to be sent by registered mail) to notify the Company of their intention to return to work, unless the failure is due to accident, illness or other emergency beyond the reasonable control of the employee and which accident, illness or other emergency is verifiable; f) after having been laid off they fail to report to work within five (5) working days after having been given notice of recall (or after the mailing of notice of recall to their last address shown on the Company s records); unless the failure is due to accident, illness or other emergency beyond the reasonable control of the employee and which accident, illness or other emergency is verifiable; g) they overstay a leave of absence without securing an extension of such leave of absence unless the failure is due to accident, illness or other emergency beyond the reasonable control of the employee and which accident, illness or other emergency is verifiable; h) If the employee is absent for more than 24 consecutive months and is not in receipt of long term disability or WSIB benefits Lay-Off and Recall In all lay-offs probationary employees shall be the first to be laid off except that probationary employees may be retained if no one else in the bargaining unit is qualified and able to do their work.

15 15 In the event of all lay-offs the junior employees within their respective classifications will be the first to be laid off (A) No employee with seniority will be laid off without at least (5) five working days notice, except in the case of extenuating circumstances beyond reasonable control of the Company such as fire, flood, explosion or power failure, and any temporary lay-offs as mentioned in Section and indefinite lay-offs (B) An employee who received a layoff notice must make it known to the Company in writing their desire to bump within three (3) days of the five (5) calendar days of receiving the layoff notice An employee with seniority who is scheduled for lay-off will be given the opportunity to displace plant wide a less senior employee whose job they are qualified and able to perform. If an employee with seniority is qualified and able to displace a less senior employee and elects to take lay-off instead, they will have recall rights as set out in Article If an employee with seniority is not qualified and able to displace a less senior employee and is laid off, they will have recall rights as set out in Article In the event of a temporary lay-off, which is deemed to be 13 weeks or less, an employee who exercises their right to displace as in above, will be given a 5 day familiarization period to meet the required standard or other acceptable performance. In the event of an indefinite lay-off, which is deemed to be over 13 weeks, the employee will be given a 15 day familiarization period. Employees with over 10 years service will be provided a 20 day familiarization period in the event of an indefinite layoff. To receive the benefit of the total familiarization period, an employee must clearly demonstrate progress towards the required standard. If an employee is unable to meet the required standard or other acceptable performance within the applicable familiarization period, they will be laid off without further

16 16 bumping rights and will have recall rights as set out in Article In no event shall such employee be eligible for recall to a job where he was unable to meet the required standard or other acceptable performance For the purposes of lay-off only, members of the Shop Committee and the Local Union President being an employee will be deemed to have greater seniority than the other employees. Such special seniority is conditional upon the employee concerned having two (2) years seniority or more These lay-off procedures will not apply when a temporary lay-off is necessary due to lack of material, power failure, breakdown or repair of machinery or relocation of machinery. In all such cases, except for lack of material, lay-offs may be made without regard to seniority. In the case of lack of material, lay-offs may be made in inverse order of seniority within a classification within a department. In the event that any such temporary lay-off should last longer than three (3) working days, the regular lay-off provisions of this article will then apply The Company will meet with the Shop Committee prior to all lay-offs. The Human Resource Director will be present at this meeting An employee who is transferred to another classification in lieu of lay-off and who has continuously held seniority since such transfer will, as and when work becomes available, be returned to their former classification before any recalled or new employee is placed in that classification or any less senior employee is so returned In the event of recall, laid off employees will be recalled in order of seniority provided they are qualified and able to perform the work available. In the case of an indefinite layoff any employee who is offered a job in any classification including the one they held at the time of lay-off shall be permitted to decline such job and remain on voluntary layoff if the anticipated duration of the job to which they are being recalled is not more than 60 calendar days in the first instance and 30 calendar days in the second instance.

17 17 If the employee declines such job in each instance then they shall not be recalled until work is available in the classification they held at the time of lay-off. In the event that a laid off employee is recalled in accordance with the above procedure and is unable to accept the recall because of illness or injury, it is agreed that the Company will recall the next qualified employee in accordance with the above procedure and notify such employee that it is a limited recall. When the employee who was unable to accept the recall because of illness or injury is able to work, they shall have the right to replace the employee who was recalled in their place on seven (7) calendar days notice. The employee replaced shall then be laid off in accordance with Article Temporary Transfer a) The company has the right to temporarily transfer employees for a period not exceeding sixty (60) calendar days. An employee so transferred will have their rate maintained if the transfer is to a lower classification. If the transfer is to a higher classification the employee will have their wage rate adjusted to the first point in the schedule that provides an increase. Note: The parties agree to establish a student rate which will be the base rate for Grade 10 and appear in the Schedule A rate above grade 10, there will be no progression schedule for the student rate but it is agreed that the rate will move in concert with any changes to the base rate for Grade 10. Employees may submit a written request to their immediate venture manager to request consideration for temporary transfers and these requests will be taken into consideration. b) In the event the transfer goes beyond 40 days, the Company agrees to meet with the Shop Committee on the 41st day to review the circumstances to determine if a job posting is necessary. c) The Company agrees that the person temporarily transferred will not be given preferential treatment in the event the vacancy results in a job posting.

18 Promotions and Job Posting Promotions to higher paid jobs, including newly created jobs within the bargaining unit, will be based on the following factors: ability, capacity, experience, merit and seniority. When all other factors are relatively equal, seniority will be the controlling factor a) The Company will post notice of permanent vacancies (that is, of anticipated duration of sixty (60) calendar days or more) in both existing and newly created classifications within the bargaining unit. Notice will state the number of jobs to be filled, the scheduled location of the job, the shift, the rate of pay for each job to be filled and a description of the work required. Such notice will be posted Monday through Thursday at 4:00 p.m. the first day, for two (2) consecutive working days in the case of the original vacancy and for twenty-four (24) consecutive hours in the case of the first subsequent vacancy created as a result of the original vacancy being filled. If an employee is on an authorized leave of absence not exceeding twelve (12) months, any job vacancy posted as a result will be deemed temporary. b) An employee on a temporary transfer shall be returned to his/her original position no later than five (5) working days following the return of the absent employee Eligible employees pursuant to Section will make application in writing within said two (2) days for the original posting and twenty-four (24) hours on any subsequent posting. The Chairperson of the Shop Committee will receive copies of all applications within the said two (2) days or twenty-four (24) hours as the case may be. A successful applicant will not be eligible to make application for any other permanent job vacancy for a period of six (6) months, excluding temporary postings. All applicants will be advised of the result of the posting within five (5) working days following the closing of the posting. Only the original job vacancy and the first subsequent vacancy will be posted. An unsuccessful candidate will, on request, be told the reasons for their application being unsuccessful.

19 An employee with seniority may bid for a posted job and wage rates will be processed as follows: a) In the event of a promotion, the employee will have their wage rate adjusted at the time of transfer to the first point in the Schedule that provides an increase and further progressions shall be in accordance with and at the time intervals stipulated in the appropriate Schedule A-1 or A-2. b) In the event of a lateral move, the employee will not receive an increase at the time of transfer and any progressions shall be in accordance with the times and intervals that they would have received had they remained in their previous classification. c) In the event of a demotion, which is permitted providing the employee has three (3) years or more seniority or in the case of an employee who is disabled or in ill health, the employee will be placed in the rate range in the same relative position that they occupied in their regular classification. Further progressions, if any, shall be in accordance with the times and intervals that they would have received had they remained in their previous classification. It is also understood that employees desiring a shift or departmental change are eligible to post within their own classification. In the event of a transfer within a classification on the same shift the company reserves the right to delay any movement until such time as adequate replacements are found and or trained with the understanding that all such transfers will take place no later than 90 days after the awarding of the posting. The term Schedule referred to above shall mean Schedule A-1 for employees with seniority dates prior to January 4, 1994 and to Schedule A-2 for employees with seniority dates on or after January 4, An employee on an authorized leave of absence due to illness may request consideration for job postings. It is the employees sole responsibility to stay abreast of the available openings. Should such employee be awarded the position and not immediately available to return to work, the job may be filled as per Article 12.15(a). Should the

20 20 successful applicant fail to return to work within 60 days the Company may fill the job with the next most senior qualified applicant. An employee on vacation or other authorized leave may request consideration for job postings and will be given consideration. The parties agree that any employee absent due to an approved bereavement leave, as described in and 21.03, shall be automatically considered for any posted vacancies that occur during their bereavement Transfers Back to the Bargaining Unit Promotions or transfers to positions outside the bargaining unit are not governed by the provisions of this agreement but where an employee who has been so promoted or transferred shall be entitled to return to the bargaining unit and retain their seniority for a period of one year Leave of Absence The Company may grant leave of absence for legitimate personal reasons including the transaction of union business, and if so granted, seniority will accumulate during the period of such leave of absence The Company recognizes its statutory duty to accommodate disabled employees subject to the conditions of the Ontario Human Rights Code. In this regard the Company will seek input from the Union prior to making decisions on accommodation. ARTICLE 13 - POSTING NOTICES The Local Union shall have the privilege of posting notices approved by the Human Resource Director or the resident executive on a bulletin board to be provided by the Company for the Union s exclusive use Company notices relating to job postings, vacations, or holidays will be posted on the Company s bulletin board, with a copy of said notice going to the Local Union President.

21 The Union may also post a notice of each monthly union meeting at each time clock in the plant. These notices may be posted one week in advance of the meeting and will be removed the day following the meeting. ARTICLE 14 - HOURS OF WORK 14.01a The standard work week for day shift shall be forty (40) hours consisting of five (5) days of eight (8) hours each and the hours of work shall be as follows: 7:30 a.m. - 4:00 p.m. including a one half-hour unpaid lunch period, 12:00 p.m. - 12:30 p.m. The standard work week for night shift shall be forty (40) hours consisting of four (4) days of ten (10) hours each and the hours of work shall be as follows: 4:00 p.m. - 2:30 a.m. including one half hour unpaid lunch period 9:00 p.m. - 9:30 p.m b It is agreed by both parties that a third shift requirement, due to seasonal production fluctuations may be offered. Prior to the implementation of this shift both parties agree to discuss: personnel to be affected, the department and classifications where the requirement exists, duration and any other unforeseen conditions. 14:02 Any change in the starting and stopping and the lunch period will be discussed and mutually agreed upon with the Shop Committee before it is put into effect. ARTICLE 15 - REPORTING FOR WORK AND CALL-IN Any employee who, not having previously been notified not to report for work, reports for work at their regularly scheduled time and finds that no work is available shall be provided with four (4) hours work or given four (4) hours pay in lieu thereof at their regular rate, provided that failure to supply work is not the result of fire, flood, power failure or other condition beyond the reasonable control of the Company. Any employee so affected will take such temporary work as is available to qualify for such pay If an employee is summoned to the plant for the performance of any work at other than their regular scheduled working hours, they shall be paid a minimum of three (3) hours at the applicable overtime rate. However, if said work commences within the two (2) hours immediately preceding their regular starting time they will

22 22 be paid the applicable overtime rate for the actual overtime worked. ARTICLE 16 - WASH-UP PERIOD Employees will be allowed two (2) 3 minute wash-up periods, one at the end of each half shift. ARTICLE 17 - REST PERIOD Employees will be allowed two (2) 10 minute rest periods, one in each half shift Night shift employees will be allowed two (2) fifteen (15) minute rest periods, one in each half of the shift. ARTICLE 18 - OVERTIME All time worked in excess of eight (8) hours but less than twelve (12) hours in any one day shall be paid at the rate of time and one half. For afternoon shift, overtime will be paid at time and one half for time worked in excess of ten (10) hours but less than fourteen (14) hours. For third (3 rd ) shift employees, overtime will be paid at 2 times the base hourly rate All time worked in excess of twelve (12) hours in any one day shall be paid at the rate of double time. Afternoon shift hours worked in excess of fourteen (14) hours in any one day shall be paid at the rate of double time Authorized time worked on Saturdays shall be paid at the rate of time and one half up to eight (8) hours and at double time beyond eight (8) hours. For afternoon shift, time worked up to eight (8) hours on Friday and Saturday will be at time and one half and at double time beyond eight (8) hours Authorized time worked on Sundays shall be paid at the rate of double time Authorized time worked on statutory holidays named in this agreement shall be paid at the rate of double time. This payment is in addition to any statutory holiday pay to which the employee is entitled.

23 Overtime shall first be offered to those employees who are low on overtime in their respective classification provided they are able to do the work. If the employee(s) involved cannot for any reason work the overtime, such overtime will be offered to employees within the department before employees from outside the department are asked, provided they are able to perform the work and are available. Where there are insufficient volunteers to perform the required overtime work, the Company may require one or more bargaining unit employees to perform the overtime work. The Company shall apply this requirement in reverse order of seniority in the relevant classification and/or department and in compliance with the employment standards act Subject to Article 18.06, all overtime work shall be distributed as equitably as possible. To ensure equitable distribution of Overtime hours the Company will track all hours worked or offered. All overtime offered and declined will be marked as hours worked In the event an employee is asked to work overtime without advance notice (1 day) and the employee refuses, such overtime will not be recorded for the purpose of overtime. The tracking of overtime is for equalization In the event Overtime is required both Saturday and Sunday, it is agreed preference for Sunday will be given to those employees that work Saturday. In the event the Company still has Sunday requirements employees that refused Saturday shift will be approached Overtime records shall be kept and made available to the Shop Stewards to be posted in plant. ARTICLE 19 - STATUTORY HOLIDAYS The days and half days listed hereunder will be observed as statutory holidays, and employees shall be given the day or half-day off with eight (8) hours pay for a full day or four (4) hours pay for a half-day at their regular rate. It is agreed that night shift employees scheduled to work ten (10) hour shifts shall receive ten (10) hours pay for a full day or five (5) hours pay for a half-day at their regular rate subject to the following conditions:

24 24 Pay for any lost time due to absence for any reason on the working days immediately before and immediately after a holiday shall be computed and the equivalent time shall be deducted from the holiday pay of the employee absent on such days, provided however that if such absence has been authorized in writing by the Company and commenced not earlier than five (5) working days immediately before or terminated not later than five (5) working days immediately after the holiday this condition shall not apply. Absence on account of certified illness or injury shall be deemed to be leave authorized by the Company for the purpose of this clause Should such holiday fall on a Sunday, the holiday will be observed on the following Monday, or by mutual agreement on some other day. Should such holiday fall on a Saturday, the Company shall have the right to designate the preceding Friday or the following Monday as the holiday for the purposes of this provision. The half-day holiday on Christmas Eve and the half-day holiday on New Year s Eve will be on the last working day preceding Christmas Day and New Year s Day respectively The holidays to which this article applies are: New Year s Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Half-Day Christmas Eve Christmas Day Boxing Day Half-Day New Year s Eve ARTICLE 20 - ANNUAL VACATIONS WITH PAY The vacation year is fixed as July 1st to June 30th and the date for establishing vacation eligibility is June 30th of each year. (b) Pay out of vacation on Anniversary Vacation with pay shall be granted to each eligible employee as follows: a) Employees with more than one (1) year but less than five (5) years of service: two (2) weeks

25 25 vacation with pay equivalent to 4% of the employee s earnings for the year ending June 30th. b) Employees with more than five (5) years but less than thirteen (13) years of service: three (3) weeks vacation with pay equivalent to 6% of the employee s earnings for the year ending June 30th. c) Employees with more than thirteen (13) years but less than twenty-three (23) years of service: four (4) weeks vacation with pay equivalent to 8% of the employee s earnings for the year ending June 30th. d) Employees with more than twenty-three (23) years of service with the Company: five (5) weeks vacation with pay equivalent to 10% of the employee s earnings for the year ending June 30th. e) On leaving the employment of the Company for any reason, an employee will receive vacation pay at the rates provided in this article but prorated to the period for which they have not already received vacation pay. Earnings for any year are deemed to include weekly indemnity payments received by an employee during that year and the previous year s vacation pay shall be included in the gross earnings for calculating current vacation pay The Company will post notice of any vacation shutdown by March 15th in each calendar year Vacations will run concurrently with plant shutdown. For those employees entitled to vacations in excess of plant shutdown, requests for such vacation shall be given to the Company by April 15th in each calendar year. Depending on Company requirements where not all requested dates can be granted, employees will be considered in accordance with seniority. For requests received after April 15th in each calendar year, depending on Company requirements, such requests will be considered in the same order as the requests are received regardless of seniority.

26 26 ARTICLE 21 - BEREAVEMENT An employee suffering bereavement in respect of the death of a close relative will be allowed 40 hours leave of absence with pay provided an employee is scheduled for work at the time of the bereavement. Employees working the third shift shall be allowed 2 days paid at the equivalent of the 40 hour rate Close relative shall mean: spouse (including common law) and same sex partner, child (including foster child and step child), father, mother (including step parents), brother, sister, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, grandparent or grandchild Employees shall be eligible for 1 day bereavement for spouse s/partner s grandparent In order to qualify for bereavement leave pay regarding a spouse or same sex partner and/or associated in-laws, an employee must be residing with the spouse/partner. In the event that the death occurs in the twelve month period following a separation and in the further event that children 18 or younger are residing in the spouse s residence the normal bereavement entitlement shall apply. Bereavement pay and time must be taken at the time of death; no banking of bereavement leave will be permitted Adopted employees cannot claim bereavement for both their adoptive and biological families and unless it is specifically declared otherwise all leaves shall apply to the adoptive relationship An employee called upon to act as a pall bearer for a deceased fellow employee will be allowed one (1) day off with pay to enable them to perform their duties If any bereavement falls on a scheduled vacation day(s), or statutory holiday, such vacation or statutory holiday will be rescheduled to a later date on mutual agreement, in accordance with the above entitlements.

27 ARTICLE 22 - JURY DUTY An employee who is unable to work their regular shift because they are required to perform jury services or has been subpoenaed as a Crown witness will be paid the difference between their straight time hourly earnings for the hours they normally work on their regular shift and the jury or witness pay. Night shift employees who are unable to work their regular shift due to jury duty or Crown Witness duties will be excused from the applicable shift and will be paid the difference between their straight time hourly earnings for the hours they normally work on their regular shift and the jury or witness pay The employee will be required to provide proof of service and the amount of pay received. ARTICLE 23 - PAY ON DAY OF INJURY If an employee is injured on the job as a result of which they are required by the Company or a qualified physician to leave the job, they shall be paid for the balance of their regular shift. ARTICLE 24 - WAGES Labour grades and job classifications as at the commencement of this agreement and the rate ranges applicable thereto and method of progression for the duration of this agreement are as set forth in Schedule A annexed If major changes occur in a job classification or if new work is created which is not classified, the company will establish and put into effect the new rate and/or new classification. Thereafter the Company will promptly notify the Union. If the Union objects and the parties cannot agree on a wage rate, the Union may proceed through the grievance procedure to arbitration, and the arbitrator shall have the power to determine the appropriate classification for the work in question and the proper rate therefore. In so doing, the arbitrator shall use as its basis the relationship that the disputed work or classification bears to the work of the other classifications in Schedule A.

28 a) To ensure our ability to continually improve manufacturing processes, it s understood that work assignments outside traditional practices will occur. It is recognized that the major portions of an employee s job will be focused on the primary elements of their respective classification. b) Nothing in article a) lessens the intent of article 18 with particular reference to the equitable distribution of overtime within a classification. It is recognized that the major portions of an employee s job will be focused on the primary elements of their respective classifications. ARTICLE 25 - SHIFT PREMIUM A premium of seventy-five cents ($0.75) per hour will be paid for work done on any shift following the normal day shift. A premium of twenty cents ($0.20) per hour will be paid to current employees in the material handler classification. Qualified POG employee will receive the highest rate based on the high rate classification within the group s makeup. Additional premium of ($0.20) in each cell for performing the work in the classification. ARTICLE 26 - WELFARE The Hobart Food Equipment Group Canada, Owen Sound Unionized Benefit Plan (details of which are given in the booklet issued to employees) will be continued with the following coverage and with the employee s contributions being as set forth in Schedule B annexed: a) Weekly Indemnity /3% of gross straight time earnings with benefits payable on the first day of non-occupational injury and the fourth day of illness, for a maximum period of twenty-six (26) weeks. If illness extends beyond three (3) days, benefits will be payable from the first day. Medical Notes: The employee shall be responsible for the initial documentation charges to establish a short or long term disability claim. Upon presentation of a receipt, the company will pay for