COLLECTIVE BARGAINING AGREEMENT

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1 COLLECTIVE BARGAINING AGREEMENT International Union of Bricklayers and Allied Craftworkers (BAC) and its Local 41 (hereinafter called the "Union") -Between- -and- Vesuvius Canada Inc. 333 Prince Charles Drive Weiland, ON L38 5P4 (hereinafter called the "Company") September 01, 2018 to August 31,

2 Article 1. Purpose and Scope a) The purpose of this Agreement is to establish mutually-satisfactory arrangements between the Company and its Employees, to provide for the prompt and equitable disposition of grievances and to establish and maintain satisfactory and safe working conditions, hours of work and wages for all Employees who are subject to the provisions of this Agreement. b) This Agreement is and shall be applicable wherever the Company may relocate. Article 2. Recognition a) The Company recognizes the Union as the certified exclusive bargaining agent for all Employees in the employ of the Company save and except persons above the rank of foreperson, clerical and such other personnel who do not become directly involved with complete manufacturing and relining of pre-cast and pre-ram shapes only for refractory use. "Note" construction as per the Provincial Collective Agreement between Ontario Provincial Conference of the International Union of Bricklayers and Allied Craftworkers and The Masonry Industry Employers Council of Ontario. b) As a condition of employment all Employees covered by this Agreement shall maintain membership in good standing with the International Union of Bricklayers and Allied Craftworkers and its Local 41 except as noted in paragraph c). c) It is recognized by the Company and the Union that temporary summer help may be hired for the period between April 15 and Labour Day. In the event that temporary summer help is brought on as a full-time employee, the time served as temporary summer help will be credited towards the employee's probationary period only in the same calendar year of employment. Temporary summer help hired pursuant to this clause are not to displace regular Employees. Article 3. Conditions of Amendments and Duration of Agreement This Agreement shall be in effect from September 01, 2018 to August 31, 2021 and thereafter from year to year unless written notice be given not more than one hundred and twenty (120) days and not less than sixty (60) days before the expiry day (or its anniversary date as the case may be) by the Party desirous of change. On receipt of such written notice the Parties to this Agreement shall convene a meeting within thirty (30) days and endeavour to reach an Agreement. 2

3 Article 4. Grievance and Arbitration Procedure a) An Employee being called into a Supervisor's office for disciplinary action or otherwise subject to discipline has a right to have a Steward or Union representative present. b) Any complaint or cause for dissatisfaction arising between an Employee or the Employees and the Company shall be considered as a grievance and shall be dealt with as quickly and effectively as possible in accordance with the following procedure: (i) Step 1: Any Employee having a grievance shall first submit it to a Steward who shall present the grievance, in writing, to the responsible Supervisor within three (3) working days of the grievance being known. The Supervisor shall deal with the grievance and deliver his or her answer, in writing, to the Steward within three (3) working days of receiving the grievance. These time frames are not to include Saturdays, Sundays or holidays. (iii) Step 2: If the decision of the Supervisor is not satisfactory to the Employee(s) concerned and/or the Union, it may be appealed by lodging an appeal to the Operations Manager (or designate) within three (3) working days following the decision of the Supervisor. The Operations Manager (or designate) shall deal with the appeal and render his or her decision, in writing, to the Union not later than three (3) working days after receiving the appeal. These time frames are not to include Saturdays, Sundays or holidays. (iv) Step 3: Failing settlement at or during any of the previous stages of the process as detailed herein, either party may notify the other in writing within five (5) working days of its intention to submit the grievance to arbitration and shall nominate an arbitrator. If the parties fail to agree on an arbitrator either party shall refer the grievance to the Provincial Minister of Labour to name the arbitrator. The decision of the arbitrator shall be final and binding upon both parties. The expenses of the arbitrator shall be borne in equal shares by the Company and the Union and the shares shall be paid directly to the arbitrator by each. The arbitrator shall not have jurisdiction to alter, add to, subtract from, modify or amend any part of this agreement and shall make no finding which is not supported by interpretation of the specific words of the Agreement. 3

4 c) An allegation by either Party that the other has violated or misinterpreted this Agreement may be lodged, in writing, as a policy grievance to the Operations Manager or the Union (General President and/or Assistant to the President, Canadian Affairs). Failing satisfactory settlement, a policy grievance may then be appealed to an arbitrator as herein provided. ( d) When an Employee has been dismissed, the Employee may have a reasonable period of time to interview with the Steward prior to leaving the plant premises. e) A claim by an Employee that the Employee has been wrongfully suspended or discharged shall be treated as a special grievance, if a written statement of the grievance is lodged with the Operations Manager within three (3) working days. Failing satisfactory settlement, the grievance may then be appealed to an arbitrator as herein provided. f) Resolution and/or settlement of all grievances pertaining to hourly work may include financial penalties or payment in lieu of wages and fringes. g) Neither Party shall discriminate against an Employee in the bargaining unit or management representative as a result of the individual exercising their rights pursuant to the grievance and arbitration procedure herein. h) In the event disciplinary action results in a suspension, the Company will advise the employee and the Union within 3 days as to when the suspension will be served. Article 5. Work Stoppages During the lifetime of the Agreement the Company and Union agree that there will be no lock out or strike. Article 6. Management Rights a) The Union agrees and acknowledges that the Employer has the exclusive right to manage the business and to exercise such right without restriction save and except such prerogatives of management which may be specifically modified by the terms and conditions of this Agreement. 4

5 b) Without restricting the generality of the foregoing paragraph, it is the exclusive function of the Employer: To hire, direct, promote, demote, lay off, transfer, discipline for just cause and discharge for just cause any Employee and to increase and decrease working force, providing that a claim for discriminatory promotion, demotion or transfer, or a claim that an Employee has been discharged or disciplined without just cause may be the subject of a grievance and dealt with as herein provided in Article 4. c) To determine the materials to be used, the design of the products to be handled, the facilities required for the scheduling of work and the location and use of the equipment. Article 7. Holidays, Overtime and Bereavement Leave a) All full-time employees who have completed their probationary period and are actively employed shall be eligible for vacation according to the following schedule: Up to one (1) year Two (2) to Five (5) years Six (6) to Ten ( 1 0) years Eleven (11) to Fifteen (15) years Sixteen ( 16) or more years One (1) week Two (2) weeks Three (3) weeks Four (4) weeks Five (5) weeks b) Work performed in excess of regular hours as defined in Article 10 - Appendix A shall be paid at the rate of one and one half (1 1/2) times the minimum wage rate as defined in Article 12 -Appendix B. Work performed on Saturdays shall be paid at the rate of one and one half (1 1/2) times the minimum wage rate as defined in Article 12 -Appendix B. Work performed on Sundays shall be paid at the rate of two (2) times the minimum wage rate as defined in Article 12 - Appendix B. The following holidays: New Year's Eve Day; New Year's Day, Good Friday, Victoria Day, Dominion Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Eve Day; Christmas Day, Boxing Day and Family Day shall be paid at the rate of two (2) times the minimum wage rate as defined in Article 12- Appendix B. Note: Work performed on a statutory holiday will be paid at two times the minimum wage rate plus the statutory holiday pay. c) The Company will pay each Employee for each holiday designated in Appendix C, one (1) days pay calculated at the Employee's scheduled rate of pay for the period in which the holiday occurs. The recognized day off will be consistent with the Plant Holiday 5

6 An employee shall be entitled to receive holiday pay, provided that: i) the employee has worked at least 30 days. ii) iii) the employee shall have worked their last scheduled working day prior to and their next scheduled working day following the holiday. the employee shall have worked within ten (1 0) days prior to the holiday, but is absent on the day prior and the day following the holiday due to proven illness or work related injury/accident. d) When an employee refuses overtime, the employee will be charged with the actual hours worked. e) Overtime required to be worked on the same day shall be first offered to the employee that is performing the work. If refused, the overtime shall then be offered to the next employee with the least amount of total overtime hours, who would normally perform the work. In the event that the overtime is required to be worked on the weekend or on a Holiday the overtime shall be offered to the employee with the least total overtime hours that normally would perform the work. Shift employees shall be offered overtime during their shift if possible. If off shift the shift employee with the least total amount of overtime hours that would normally perform the work shall be contacted as soon as possible and allowed to respond within one (1) hour. All overtime shall be offered by noon on the day prior when possible. All overtime shall be on a voluntary basis. f) The Company will consult with the Union on the distribution of overtime. The Company will provide the Union with a list of overtime worked by bargaining unit employees on a week-to-week basis. g) Employees will be eligible for five (5) paid days bereavement leave, paid at their scheduled rate of pay, in the event of the death of a parent, spouse (including common law spouse) or child. Employees will be eligible for three (3) paid days bereavement leave, paid at their scheduled rate of pay, in the event of the death of a brother or sister. Employees will be eligible for two (2) paid days bereavement leave, paid at their scheduled rate of pay, in the event of the death of a grandparent, grandchild, father-in-law, mother-inlaw, brother-in-law or sister-in-law. Employees will be eligible for one (1) paid days bereavement leave, paid at their scheduled rate of pay, in the event of the death of spouse's grandparent, In all cases, the leave is intended for the employee to handle all necessary family details and attend the Funeral. 6

7 Article 8. Stewards a) There shall be, appointed by the Union, a Steward for each scheduled shift. In the event that the scheduled Steward is not available, an alternate shall take the place of the regularly-scheduled Steward. b) The Union shall notify the Company, in writing, of its appointed Stewards and alternates thereto. c) No discrimination shall be shown against any Steward or alternate for carrying out their duties. d) The Company agrees to recognize the Union's appointed Stewards as representatives of the Union, particularly with respect to the grievance and arbitration procedures. e) The Union recognizes that the Stewards have regular duties to perform in connection with their employment. A Steward, with the approval of the Supervisor, will be granted leave of their regular duties for a reasonable length of time to investigate and process grievances. Supervisors shall not unreasonably withhold approval. f) The Company will provide an adequate room in the plant as may be necessary from time to time, for the Stewards to perform such duties as are required. Article 9. Technological Change The Union and Company agree that technological advances occur within the industry. In the event that the Company anticipates technological change(s) which will directly impact on the bargaining unit Employees, it will meet with the Union. The purpose of the meeting(s) is to explore possibilities such as retraining to minimize the effect of the anticipated technological change(s) on the bargaining unit Employees. Article 10. Hours of Work a) The regular hours of work shall be as detailed in Appendix A. b) Shift work hours shall be as detailed in Appendix A. 7

8 c) Employees working the Afternoon or Second Shift shall be paid a shift premium of Fifty-five cents ($0.55) per hour and Employees working the Night or Third Shift shall be paid a shift premium of Sixty cents ($0.60) per hour. d) The regular hours of work may be modified if mutually agreed to by the Parties and notification has been given to the Union. e) If an employee shows up for the employee's regularly-scheduled shift and no work is available, or less than four (4) hours work is available, the employee shall be paid four (4) hours show-up time. When the Company is unable to provide work as a result of conditions outside its control, this provision shall not be applicable. f) If an employee shows up for the employee's call-in shift and no work is available, or less than four (4) hours work is available, the employee shall be paid four (4) hours show-up time at the applicable overtime rate. When the Company is unable to provide work as a result of conditions outside its control, this provision shall not be applicable. g) Team Leaders who perform administrative work on overtime shall be paid for the actual time spent doing the work. Article 11. Work Break a) It is agreed that Employees shall be given two (2) ten (1 0) minute breaks on each shift and a ten (1 0) minute wash-up period at end of shift with no loss of pay. The Company or Supervisor shall exercise discretion as to when the breaks shall occur, but every reasonable effort shall be made to schedule such breaks at the mid-way points of the working period as defined. b) In the event that overtime is worked, Employees will be entitled to another ten (1 0) minutes break after every two (2) hours. c) If the overtime worked is in excess of four (4) hours, the Company will provide six dollars ($6.00) for the Employees to purchase a meal. However, if Employees are notified the day prior to the overtime being worked, the Company need not provide meal money. Regardless of the notification period, Employees are entitled to a one half (1/2) hour meal break after four (4) hours overtime worked which is not paid. 8

9 Article 12. Wages, Deductions and Contributions a) The total package of wages, deductions and contributions shall be that set out in Appendix B. b) Payment of wages shall be made no later than Thursday of each weekly or bi -weekly pay period during working hours by cash, cheque or other negotiable instruments including direct deposit, the latter upon written authority of the Employee. The Union in individual cases for reasonable cause may require that the payment shall be made by cash or certified cheque until such cause has been removed. Pay stubs are to be made available by the end of the shift. c) Accompanying the pay the Company shall provide a statement for each Employee showing the Company's name, the Employee's name, the dates of pay period, the number of hours worked, the rate per hour, the Gross Pay, Traveling Allowances, Vacation Pay, Board Allowance and all Deductions, Contributions and Net Pay. The Company agrees to make its best efforts to have cumulative, or year-to-date, totals displayed for all categories on the bargaining unit members' pay stubs. d) Any Employee with a pay discrepancy on the regular pay day shall give notice to the Company and Union representative by noon on the day following the regular pay day. The Company will make the applicable correction on the following pay period. If the discrepancy is not resolved the employee must again give notice to the Company and Union representative by noon on the day following the regular pay day. If the Company does not make payment of wages by 3:15 p.m. on Friday, the Company shall pay four (4) hours pay at the applicable rate in addition to wages to the Employee. Any Employee with a pay discrepancy of eight (8) hours or more on the regular pay day shall give notice to the Company and Union representative by noon on the day following the regular pay day. The Company will make the applicable correction in the current pay period. If the Company does not make payment of wages by 3:15 p.m. on Friday, the Company shall pay four (4) hours pay at the applicable rate in addition to wages to the Employee. e) All deductions and contributions shall be paid no later than the fifteenth (15th) day of the month following the month in which they were earned. The combined payments shall be deposited in accordance with the designated place appearing on the Monthly Contribution Report Form. 9

10 Article 13. Subcontractor and On-Site Operations a) Should the Company be required to sublet on-site bargaining unit work, it may do so only following consultation with and approval by the Union. The Union shall not unreasonably withhold approval. b) The Company agrees that on-site manufacturing of pre-cast, relining shapes and pre-ram shapes and other such related bargaining unit work shall only be performed by members of the bargaining unit. c) Supervisory personnel shall not be permitted to perform work normally performed by a Union Employee except: (i) (ii) (iii) (iv) Article 14. for legitimate instruction and training; in developing a method of operation for products; in emergencies when regular Employees are not available, either by call-in or transfer; and for the legitimate performance of necessary work when difficulties are encountered on the job and in consultation with the Union. Lunchroom and Equipment a) The Company will provide employees a properly-ventilated room with hot and cold running water for eating meals and for having breaks; lockable/secure job boxes or similar storage facilities for employee's tools; lockable/secure lockers for employee's to store their personal clothing and effects; and sanitary shower facilities. The Company will provide for adequate daily clean up of the current lunch/meal room by a bargaining unit employee. b) Employees' tools and clothing lost by fire or forced-entry theft shall be compensated for by the Company upon written proof of loss and reimbursed at the full amount of the purchase by the member. Article 15. Health and Safety a) A minimum of two (2) Employees must be employed on any shift whether on regular or overtime hours. In the event that there is work in both small and large shapes, three (3) Employees must be utilized. The above excludes the Team Leader when performing administrative work. 10

11 b) The Company will continue to make the proper and required provisions for the safety of its Employees during working hours. Employees shall use safety devices as instructed by the Supervisor and by the Company's policy. Such Company policy is to be in writing. Such Company policy is to be posted in a location and manner as to be seen by all Employees. In addition, the Company will establish and publish a Health and Safety manual which will remain available to all Employees and the Union when completed. c) The Company shall notify and consult with the Union prior to implementation of any new policy. d) Five (5) pairs or sets of coveralls are to be provided by the Company for all non-probationary Employees. The Company reserves the right to amend the type of work wear provided it is discussed with the Union. e) The Company shall provide any other additional required personal protective equipment such as but not limited to: safety glasses and hearing protection. f) A Joint Labour-Management Health and Safety Committee will continue to meet regularly. This Joint Committee will deal with issues specific to this particular area of the Company's operation in addition to the general items of Health and Safety that may arise throughout the Company's operations. g) Health and Safety Committee members shall be paid at their average rate for time spent on health and safety matters. h) The Company shall provide the Joint Health and Safety Committee with copies of all reports related to Health and Safety. i) Health and Safety and Tool Box meetings shall be held every other week. These meetings are to be conducted jointly by the Company and the Union. These meetings are to be held at the beginning of a shift or after the lunch period. j) No Employee shall be required to work on any job or operate any piece of equipment until that Employee has received proper training and instruction. k) The Company shall provide an allowance of up to ($215.00) per contract year per Employee for the purchase of safety shoes (including insoles), effective September 01, 2018, increased to ($220.00) effective September 01, 2019 and increased to ($225.00) effective September 1, This allowance shall be made available to all non-probationary employees. This is based on contract year, not calendar year. 11

12 I) No employee shall be disciplined for any work refusal due to unsafe conditions. Following any refusal, no other union employee may be allowed to work on the job in question until they have been fully informed of the refusal, nature of the refusal and the Union representative is informed of the situation and it has been deemed safe by the JHSC. ( m) The Company and Union will not discriminate under the Ontario Human Rights Code 1981 or as it may be amended. The Company and Union are committed to maintaining a harassment free workplace. Harassment is defined as "... a course of vexatious comment or conduct that is known, or ought reasonably be known to be unwelcome... " that denies individual dignity and respect on the basis of the grounds such as: gender, disability, colour, sexual orientation or other prohibited grounds as stated in the Ontario Human Rights Code. All employees of the Company are expected to treat others with courtesy and consideration and to discourage harassment. Any harassment complaint will be promptly investigated in an attempt to resolve such complaint in a fair and consistent manner. Article 16. Probation a) The probation period for new hires is a total of 75 working days. b) While on probation, employees will be paid the following base rate: days $15.00/hr days $17.50/hr days $20.00/hr c) Employees are not entitled to nor will contributions be made on their behalf for benefits for the first (75) days of their probation period. 12

13 Article 17. Layoff and Recall a) All current pre-cast employees, as of September 1, 2018, will have seniority over all new hires. b) In the event layoffs are necessary, the Company will give 24 hrs notice to the Union. The Company agrees to lay off in reverse order of seniority provided there are available Employees with seniority who are capable of adequately doing the work of the Employees to be laid off. In the event of layoff(s), those employees indicating a preference for voluntary layoff will precede other members regardless of seniority providing the remaining employees are capable of performing the work of the employees to be laid off. Voluntary layoffs will not exceed 16 weeks at which time the employee with the least amount of seniority will be subject to layoff and the voluntary employee laid off will return. Call backs will be in reverse order of the layoffs. c) Seniority is determined by the last date of permanent hire with the Company for work covered by this Agreement. d) Employees with 2 or more years of seniority will maintain their seniority for up to 2 years. Employees with less than 2 years of seniority will maintain their seniority while on layoff for a period of time equal to their accumulated seniority at the time of layoff. Article 18. Leave of Absence a) The Company may grant a leave of absence for up to 6 months without pay to employees for legitimate reasons other than to engage in employment with another employer or to enter business for oneself. Such leave will only be granted after all outstanding vacation has been utilized. Seniority accumulates during any period of leave of absence with permission. Article 19 Health and Welfare- NEW a) Company to provide a comprehensive Health and Welfare plan effective December 1, 2018 as per the following: O.H.I.P. Medical Plan Major Medical Plan Life Insurance Accident Death and Dismemberment 13

14 Dental Plan The Company will provide comprehensive dental coverage for employees. Coverage for Level 2 procedures will be 90% with an annual maximum of $1750. Prescription Drug Plan To cover all employees and dependents, employees will be provided a pay direct drug plan (drug card) with an employee cost of $2.00 per prescription. Vision Care Company will provide a comprehensive vision care plan with a benefit amount of $250 every two (2) years. The benefit amount will increase to $275 on June 1, b) Health and Welfare benefits will cease 1 month following the month in which an employee is laid off. 14

15 APPENDIX A SCHEDULE OF HOURS Working Period Start Time Lunch Break Finish Time Regular Hours Break: 7:00a.m. 8:30-8:40 a.m. 11:00-11:30 a.m. 1 :30-1 :40 p.m. 3:30p.m. Wash up: 3:20-3:30 pm Two-Shift Operation 1st Shift 2nd Shift Break: 7:00a.m. 3:30p.m. 5:30-5:40 p.m. 11:00-11:30 a.m. 3:30p.m. 7:30-8:00 p.m. 12:00 a.m. 10:00-10:10 p.m. Wash up: 11 :50pm-12:00 am Three-Shift Operation 1st Shift 2nd Shift 3rd Shift Break: 7:00a.m. 3:30p.m. 11:00 p.m. 1:00-1:10 a.m. 11:00-11:30 a.m. 3:30p.m. 7:30-8:00p.m. 12:00 a.m. 3:00-3:30 a.m. 7:30 a.m. 5:30-5:40 a.m. Wash up: 7:20-7:30 a.m. 15

16 APPENDIXB SCHEDULE OF WAGES, DEDUCTIONS AND CONTRIBUTIONS WAGES Team Leader Sep 1 Sep 1 Sep Assistant Sep 1 Sep 1 Sep Temporary Help Sep 1 Sep 1 Sep Base Rate Vacation Pay Hourly Wage PENSION Pension TOTAL EMPLOYER CONTRIBUTIONS Industry Promotion Safety Shoes $0.02 per hour worked. $215 $220 $225 $215 $220 $225 NA NA NA EMPLOYEE CONTRIBUTIONS Local Dues Industry Promotion Working Dues RRSP $5.77 weekly. $0.02 per hour worked. $0.28 per hour worked. On approval, $20.00, $40.00, $60.00, $80.00 or $ per weekly pay period (excluding Temporary Help). Amount can be adjusted by each Employee on January 1st and July pt of each year. All RRSP withdrawals will be limited to one occurrence per year. 16

17 APPENDIXC STATUTORY HOLIDAYS Labour Day... September 3, Monday Thanksgiving Day... October 8, Monday Christmas Eve Day... December 24, Monday Christmas Day... December 25, Tuesday Boxing Day... December 26, Wednesday New Year's Eve Day... December 31, Monday New Year's Day... January 1, Tuesday Family Day... February 19, Monday Good Friday... April 19, Friday Victoria Day... May 20, Monday Canada Day... July 1, Monday Civic Holiday... August 5, Monday Labour Day... September 2, Monday Thanksgiving Day... October 14, Monday Christmas Eve Day... December 24, Tuesday Christmas Day... December 25, Wednesday Boxing Day... December 26, Thursday New Year's Eve Day... December 31, Tuesday New Year's Day... January 1, Wednesday Family Day... February 17, Monday Good Friday... April10, Friday Victoria Day... May 18, Monday Canada Day... July 1, Wednesday Civic Holiday... August 3, Monday Labour Day... September 7, Monday Thanksgiving Day... October 12, Monday Christmas Eve Day... December 24, Thursday Christmas Day... December 25, Friday Boxing Day... December 28, Monday New Year's Eve Day... December 31, Thursday New Year's Day... January 1, Friday Family Day... February 15, Monday Good Friday... Apri12, Friday Victoria Day... May 17, Monday Canada Day... July 1, Thursday Civic Holiday... August 2, Monday 17

18 SIGNING SHEET Collective Bargaining Agreement International Union of Bricklayers and Allied Craftworkers (BAC) and its Local41 (hereinafter called the "Union) Between- and- Vesuvius Canada Inc. 333 Prince Charles Drive Weiland, ON L3B 5P4 (hereinafter called the "Company") ON BEHALF OF THE UNION 18