COLLECTIVE AGREEMENT BETWEEN CARGILL LIMITED CALGARY, ALBERTA AND UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION LOCAL NO.

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1 COLLECTIVE AGREEMENT BETWEEN CARGILL LIMITED CALGARY, ALBERTA AND UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION LOCAL NO AFL-CIO, CLC IN EFFECT FROM JANUARY 01, 2015 THROUGH DECEMBER 31, 2018

2 THIS AGREEMENT is made and entered into between CARGILL LIMITED, CARGILL FOODS DIVISION, Calgary, Alberta, hereinafter referred to as the "Company," and the UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION, LOCAL NO hereinafter referred to as the "Union." ARTICLE 1 RECOGNITION The Company recognizes the United Food and Commercial Workers International Union, Local No as the sole and exclusive collective bargaining agency for all full-time and part-time employees at the plant located at 10 Freeport Way Calgary, Alberta. This Agreement shall not apply to managerial employees above the rank of supervisors, supervisors, office clerical employees, nursing, quality assurance, laboratory, sales, purchasing personnel and guards. ARTICLE 2 PURPOSE OF THE AGREEMENT Section 1: It is the intent and purpose of the parties hereto that this Agreement shall promote and insure harmonious relations, cooperation and understanding between the Company and its employees, set forth rates of pay and other conditions of employment to be observed between the parties hereto. Section 2: It is recognized by both parties that they have a mutual interest and obligation in maintaining friendly cooperation between the Company and the Union which will permit safe, economical and efficient operation of the plant. ARTICLE 3 NON-DISCRIMINATION POLICY / HARRASMENT Section 1: The Company and the Union agree that they will not discriminate against any employee or applicant for employment because of race, sex, colour, creed, nationality, age, religious beliefs, ancestry, national origin, marital status, sexual orientation or disability. Section 2: Harassment of any employee due to that employee s race, sex, colour, creed, age, religious beliefs, ancestry, national origin, marital status, or disability is prohibited by this Agreement. Harassment consists of unwelcome conduct, whether verbal or physical, that is based upon an employee s race, sex, colour, creed, age, religious beliefs, ancestry, national origin, marital status, sexual orientation or disability. Section 3: The Company will not tolerate harassing conduct that interferes unreasonably with an individual s work performance, or that creates an intimidating, hostile or offensive work environment. Section 4: The Union and the Company agree that sections two (2) and three (3) can be read independently.

3 ARTICLE 4 MANAGEMENT RIGHTS Section 1: The management of the plant and the direction of the working force, including the right to hire, suspend, discipline or discharge for cause, to assign jobs, to determine the qualifications and the ability of the employees, to transfer, promote or demote employees, to increase and decrease the working force, to determine production standards, to determine products to be handled, produced or manufactured, to determine rules applicable to employees, the schedules of production and the methods, processes, and means of production handling, are vested exclusively in the company; provided this will not be used for the purpose of discrimination against any employee or to avoid any of the provisions of the Agreement. The Company and the Union agree to act reasonably in the interpretation and the application of the collective agreement as a whole. Section 2: It is mutually agreed that the Company retains all management rights and prerogatives heretofore held, except such rights as are specifically relinquished herein. Section 3: Management personnel may perform any duties that are necessary in the conduct of the business and do not take the place of a full time bargaining unit employee. Section 4: The Company reserves the right to contract out, transfer, or assign, in whole or in part, any of the operations, procedures, or services performed by employees to any person or firm. Both parties agree, however, to minimize the effects of subcontracting generally on the job security of employees and will work to that end. The Company will notify the Union when it decides to subcontract bargaining unit work. If the Union requests, the parties will meet to discuss the effects of the Company's decision on the job security of employees. Section 5: It is understood between the Company and the Union that the Company will operate hours which best fulfills the customers needs. The Company will schedule work accordingly. This will necessitate changes in the traditional work schedule, potentially including alternate shift times and durations and regular work on Saturdays and Sundays. These revised work schedules are themselves also subject to change to meet business conditions. ARTICLE 5 UNION MEMBERSHIP AND DUES CHECKOFF Section 1: The Company agrees that a condition of employment shall be that any employee who was a member of the Union in good standing on the date of the signing of this Agreement shall maintain such membership. Section 2: All employees shall, as a condition of employment, become members of the Union within ten (10) days following the date of their employment and shall thereafter maintain membership in the Union in good standing. The Company will procure from all such employees the necessary membership applications and membership in the Union shall be granted within the above mentioned ten (10) day period.

4 Section 3: Under this Agreement, employees who either are or become members will maintain their membership in the Union in good standing if they pay the regularly prescribed initiation fee, regular Union dues, and periodic assessments uniformly required of all members of the Union in accordance with the provisions of this Agreement. Section 4: An employee will, in writing on a form provided by the Union, authorize the Company to deduct from wages due to him/her an amount payable by that employee to the Union for: A. Union dues, and B. Initiation fees and uniform assessments. Section 5: The Company shall make the deductions authorized by the employee, and the authorization is effective only for the amount or the percentage of the wages as indicated in writing by a local Union Officer. Section 6: The Company shall by the tenth (10th) day of each month remit to the Union the dues deducted for the preceding month, and a written statement of the names of the employees for whom the deductions were made and of the amount or percentage of the employee's wages of each deduction. Section 7: The Union will notify the Company at least thirty (30) days in advance by certified letter of any changes in the amount of dues, uniform assessments, and initiation fees and the effective date thereof. Section 8: The Union shall indemnify and save the Company harmless against any and all claims, demands, suits, or other forms of liability which shall arise out of or by reason of action taken or not taken by the Company in reliance on such authorization cards furnished to the Company by the Union or any employee or for complying with any provision of this Article. Section 9: The Company will record the amount of union dues deducted during the calendar year on the individual employee s T-4. ARTICLE 6 HOURS OF WORK Section 1: The work week for payroll purposes shall start at 12:01 A.M. on Monday and end on midnight Sunday evening. Section 2: Hours of work shall be scheduled in line with production requirements and employees will be given the following notices of schedule changes in writing except when such change is due to circumstances beyond the control of the Company. A. Twenty-four (24) hours of notice prior to a change in shift starting B. Notice of sixth (6 th ) day work three (3) days prior C. Notice of shift change one week prior to the effective day of the change. D. Notice of start times for all jobs.

5 Section 3: Time and one-half (1½) will be paid for all hours worked in excess of forty (40) in any one week or eight (8) hours in any one day except for employees who are regularly scheduled to work a twelve (12) hour shift per day in which event they will be paid time and one-half over forty (40) hours in any one week or twelve (12) hours in any one day. Section 4: Employees will be paid double (2x) time for work performed on their seventh (7th) consecutive day of work within the work week provided they have worked on the first six (6) days for the work week. In the event that regularly scheduled maintenance employees working four (4) twelve (12) shifts are required to work on their second scheduled day off they will be paid at double (2x) time. Work on their other scheduled days off shall be at time and one half (1½). Section 5: Overtime pay will not be pyramided. Section 6: For the purpose of computing pay for hours worked on Sunday or paid holidays, a shift cutting across two (2) calendar days shall be treated as work on the day which the shift begins. Section 7: Employees called to work will be provided with a minimum of four (4) hours of work or pay in lieu of work Section 8: For employees working an eight (8) hour shift, work beyond twelve (12) hours per day is voluntary except in emergencies. ARTICLE 7 SENIORITY Section 1: All employees shall be on probation for fifty (50) days worked from the date of last hire; however, the probationary period shall be extended to eighty (80) days worked if the Company gives written notice to the Union and the employee during the first fifty (50) days worked stating the reason for the extension and the probationary period will be extended by time spent on modified duty. During the probationary period the Company may terminate an employee for any reason at its discretion which shall not be subject to a grievance under the grievance procedure however the Company shall not act in a manner that is arbitrary, discriminatory or in bad faith. During probation employees have no seniority rights other than those specifically set forth in this agreement. Section 2: Seniority shall be applied on the following basis within the plant: First - Department Second - Plant Layoff, recall and promotion will be based on the length of service within a department or the plant provided the qualifications and ability to perform the work are sufficient among employees eligible for consideration. Seniority within the plant shall operate within each of the departments as defined in Section 12.

6 Section 3: The Company will reduce jobs in the following order, by department and by plant seniority except that probationary employees will be the first employees laid off or transferred in a reduction of the workforce. Employees so affected can displace the least senior employee in the next higher order of seniority if they are qualified to perform the least senior employee's work. The Company and Union will meet as soon as possible after the layoff has been implemented in an effort to resolve qualification questions where senior employee(s) have been actually laid off and junior employees have not. A senior employee may decide against exercising displacement rights and be laid off but, in doing so, must remain laid off until recalled. Section 4: In circumstances where hours of work are being reduced the Company shall endeavor to place employees in other jobs or other areas of the plant. The Company shall try to ensure that senior qualified employees are the last to have their hours reduced and the first to have their hours increased. Section 5: For temporary layoffs [less than sixty (60) days] the Company will give at least two (2) working days notice to affected employees except in circumstances beyond the Company's control. The Company will also attempt to place the affected employees in other positions whenever possible until normal operations resume. Section 6: The Company will recall employees in the reverse order of layoff according to plant seniority. The Company will provide recall notice first by telephone and then by registered mail to the employees last known postal address on record as furnished by the employee. Notice will be considered received five (5) working days after the date of mailing. Section 7: The Company will provide the Chief Steward with a list of the names of employees who will be recalled or laid off within one (1) working day after notice to the affected employees. Section 8: Job Bidding. A. Permanent full-time vacancies shall be posted for a period of three (3) work days with the exception of maintenance division postings which will be for five (5) working days, and will state the specific job title, shift, level, department and line number. Employees within the department or plant may bid according to their choice. Jobs shall be awarded to the senior bidder within the plant, with the exception of maintenance department jobs, which will be awarded to the senior bidder within the maintenance department by maintenance department seniority. B. The successful bidder on the job posting will be required to accept the job. Job bidders accepting the job posting shall make a sincere effort to learn the job; however, in the event they cannot, in the judgment of the Company, perform the work in a satisfactory manner, the bidders shall be permitted to return to their former job. A reasonable trial period to learn the job is usually two (2) weeks. However, the trial period may be less than two (2) weeks, or in some cases, more than two (2) weeks as circumstances require. All successful bidders who are not moved within thirty (30) calendar days of the job bid award will be paid the rate of such job, for upward movement. In the event of a downward or lateral movement, the employee will be paid the rate of the job they are performing plus fifty cents ($.50) per hour if not moved within thirty (30) days. Successful bidders will be

7 moved within ninety (90) days of the date of the job bid award. Employees will not be disqualified from a job merely for the purposes of avoiding penalty pay as set forth in this section. Job bidders who voluntarily forfeit the job before they become qualified will be allowed to return to their former job, but will not be allowed to bid for six (6) months. C. Employees who successfully bid into another department will establish seniority in the department when they qualify for the job and shall lose all seniority in their previous department. An employee s department seniority date will be the same as the employee s plant seniority date. D. In any event, employees are limited to two (2) bids in any calendar year. E. Employees temporarily assigned to a job having a lower rate of pay than their regular rate will receive his regular rate while performing such job except in the cases of modified duty due to health reasons for work related injuries or illnesses they receive the rate until it is medically determined they can no longer perform the job permanently. This will not apply when employees are assigned to a lower-rated job in accordance with their seniority, as a result of a change in the department or plant operations. This will also not apply where, in accordance with seniority, an employee is recalled after a layoff and assigned to a lower-rated job than that held prior to layoff. F. Employees temporarily assigned to a job having a higher rate than their regular rate will receive the higher rate if performing qualified work. G. Employees shall be paid the level of the job as soon as they are qualified to perform the job. H. An employee is deemed qualified when they can perform the job regularly without instruction or assistance. Section 9: Employees on authorized leave of absence shall retain and accumulate seniority during such leave. Section 10: Seniority lists for department and plant seniority shall be maintained on bulletin boards and shall be republished at least quarterly. Section 11: An employee shall lose his seniority if and when: A. The employee quits; B. The employee is terminated for just cause; C. The employee is absent from scheduled work more than three (3) consecutive days without notice to the Company unless there is a justifiable cause. D. Absence from work for any reason in excess of two (2) years; E. The employee fails to report to work within five (5) days after receipt of notice of recall from layoff unless the employee s failure to report is due to a good and sufficient reason approved by plant management and an additional five (5) days will be granted if requested by the employee within the first five (5) days. In cases where the Company has been

8 unable to reach the employee by phone, the Company will deposit a certified letter directed to such employee at his last known address as shown by the records of the Company. It shall be the responsibility of the employee to keep his address and phone number current by advising the Human Resource Office of any changes. Section 12: Seniority within the plant shall operate within each of the following departments: A. Processing Department B. Packaging Department C. Distribution Department D. Maintenance Department Section 13: Any employees promoted to a Company position outside of the bargaining unit covered by this Agreement shall retain all of their seniority for a period of ninety (90) days following the date of their promotion. Employees who were promoted to a supervisory position and return to the bargaining unit within the ninety (90) day period shall return to their previous department and displace the least senior employee in the department with the exception of employees who were in a trainer or leadperson positions who shall return to their previous trainer or leadperson positions in their department. Section 14: The Company agrees to post maintenance, lead person and trainer openings for informational purposes only. Qualified employees may apply for such openings. In the selection of lead persons and trainers, if interested individuals meet qualifications, seniority will be the deciding factor. The Company is the final judge of qualifications. Section 15: Assignments of work outside of an employee s department will be offered to the most senior qualified employee(s). The Company will follow the policy of senior may, junior must. If no junior qualified employee(s) are available to perform the work, the senior qualified employee(s) will be required to perform the work. This language does not apply if the Company determines that all employees from a department are needed to perform work in another department(s). Overtime work shall be offered to the most senior qualified employee. The Company will follow the policy of "senior employee may, junior must." If no junior qualified employee(s) is available to perform the work, the senior qualified employee(s) will be required to perform the work. This language will not apply if the Company determines that it needs all employees to work the overtime in question. Section 16: The Company will provide the Union an address list and telephone numbers of all bargaining unit employees, a current list of job levels, job titles and a current seniority list every three (3) months. Section 17: When the Company operates more than one shift, employees within a department may exercise their seniority rights for shift preference.

9 ARTICLE 8 VACATION Section 1: Employees who complete one (1) full year of continuous service with the Company will be granted two (2) weeks of paid vacation, which may be taken at any time, with Management approval, during the second year of service. Employees who complete five (5) full years of service will be granted three (3) weeks of paid vacation. Employees who complete ten (10) full years of service will be granted four (4) weeks of paid vacation. Employees who complete twenty (20) full years of service will be granted five (5) weeks of paid vacation. Section 2: Vacation pay will be two percent (2%) of the previous year s gross earnings for each week of vacation entitlement. Section 3: The vacation will be scheduled as far in advance as possible at a time specified by the employee. It is recognized, however, that the Company must approve the vacation schedule in order to insure regular and efficient production. A vacation schedule shall be prepared and posted by April 15 of each year. Employees will be given their preference of vacation based on department seniority provided the choice is made prior to April 1. After April 1, a senior employee may not change his choice if it interferes with another employee's choice. Employees may sign up for vacation preferences by seniority from March 1 through March 31. The vacation sign up calendar will be posted or made available to employees during the March 1 to March 31 time period so that employees can determine the week(s) that are available to them by their seniority. Section 4: Vacation may not be carried over from one year to another. Section 5: Employees who file a timely request therefore shall receive their vacation pay at the beginning of their vacation period. Section 6: The Company agrees to permit employees to book one (1) week of their vacation entitlement in one (1) day increments. Section 7: For vacation submitted after April 1 st of each year, vacation will be based on first come, first serve basis. Upon submission, the Company will respond to the employee within fourteen (14) days. ARTICLE 9 HOLIDAYS Section 1: The following paid holidays are observed: New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, First Monday in August, Labour Day, Thanksgiving Day, Boxing Day, and Christmas Day. Employees that wish to observe Remembrance Day, the Company will endeavour to allow up to ten percent (10%) of the workforce to take an unpaid leave of absence on that day. Section 2: The Company will pay employees eight (8) hours of straight time pay at their regular hourly rate for the general holidays provided that:

10 A. The employee has worked at least thirty (30) working days in the preceding twelve months (12); and, B. The employee works the hours scheduled on the working day before and the working day after the holiday; and, C. The employee has not failed to work when scheduled to work on the holiday; and D. The employee is not absent without the Company s consent. Section 3: For all work performed on a general holiday the Company will pay an employee two times (2x) the employee s regular hourly wage rate in addition to the eight (8) hours of holiday pay provided in Section 2 above. Section 4: If a general holiday occurs during an employee s vacation, the employee may elect to either receive holiday pay as provided in Section 2 above or a paid holiday on another day mutually convenient between the Company and the employee. In the latter case, work performed on the alternate holiday will be paid for as provided in Section 3 above. Section 5: Sunday holidays will be observed on the following Monday. Any statutory holiday can be observed on a different day by mutual agreement. ARTICLE 10 LEAVE OF ABSENCE Section 1: The Company may grant leave of absence without pay up to thirty (30) days to employees who request a leave of absence. Once every three (3) years, the Company may grant a leave of absence without pay up to forty-five (45) days to employees who request. Copies of granted leave of absence requests shall be furnished to the Union. A request for an emergency leave of absence will not be unreasonably withheld by the Company. Such leaves will not be granted unless the employee brings written proof of such, and the request is reduced to writing. Such leaves will not be granted for the purpose of allowing an employee to take another temporary position, try out new work or venture into business for himself. Section 2: Employees chosen by the Union to attend to Union business outside the plant shall, with the permission of the Company's management, be granted leaves of absence without pay for a period not exceeding thirty (30) days, provided that when feasible such employees give the Company at least five (5) days notice in advance of the date such leave is desired. Section 3: Employees, not to exceed one (1), who are elected or appointed to a full-time position with the Union, upon proper notice shall be granted leaves of absence without pay not to exceed the life of this Agreement, and upon one (1) weeks notice of their desire to again return to work for the Company shall be placed upon their job previously held without loss of seniority rights, provided they return within thirty (30) calendar days of the date their full-time position with the Union terminates. Section 4: Time off for union business will be counted as hours worked for the purpose of computing overtime providing that such time off has been previously approved by the company.

11 ARTICLE 11 MEALS AND REST PERIODS Section 1: Employees will be granted a paid rest period of twenty (20) minutes scheduled at any time during the third (3 rd ) hour of work on each day. A second (2 nd ) paid rest period after lunch fifteen (15) minutes long when the employee is required to work more than nine (9) hours except that, for work after eight (8) hours and seven (7) minutes up to nine (9) hours, the Company will provide pay in lieu of a break unless there was an emergency earlier in the day which caused breaks to move forward. A third (3 rd ) rest period as scheduled in any work which exceeds ten and one quarter (10¼) hours. Section 2: Employees will be allowed a thirty (30) minute unpaid meal period as near as practical to the fifth (5 th ) hour after the start of the shift. Section 3: Maintenance employees will be granted a scheduled paid lunch period of thirty (30) minutes. ARTICLE 12 JURY LEAVE Section1: The Company will pay regular full-time employees who are legally summoned to appear for jury duty or who serve on jury duty up to eight (8) hours at the employee's regular hourly rate of pay less the amount of jury pay which was received for the same period. Paid jury leave is limited to thirty (30) days in a one (1) year period. To be eligible for paid jury leave, employees must notify Human Resources immediately after receipt of the jury summons, must furnish evidence as to the amount of pay received for such jury service, and must report to work if released in time to report for the remainder of their shift. Section 2: Employees who are subpoenaed to be witness will be granted time off without pay. Such time off will be excused on his / her attendance record. ARTICLE 13 BEREAVEMENT LEAVE Section 1: The Company will grant regular full-time employees scheduled for work paid leaves of absence to make arrangements for and attend the funeral or memorial service of immediate family members or bereavement upon proof of the death of an immediate family member as defined in this Article. Section 2: The Company will pay up to a maximum of twenty-four (24) hours at the employee's regular hourly rate for time lost on regularly scheduled consecutive work days which fall on three (3) consecutive days, one of which must be the day of the funeral or memorial service when possible for a spouse, child, step-child, parents, step-parent, brother, sister, mother-in-law, fatherin-law, sister-in-law- or brother-in-law. Section 3: The Company will pay up to a maximum of eight (8) hours at the employee's regular

12 hourly rate for time lost on a regularly scheduled workday which falls on the day of the funeral of either the employee's or the employee's spouse's natural grandparents. Section 4: To receive a paid leave of absence under this provision, regular full-time employees must notify the Company about the need for the leave no later than the start of their shift on the first day of absence; and, if additional unpaid leave is necessary, they must request additional time off prior to the bereavement leave. The employee must furnish satisfactory proof for the bereavement leave if requested by the Company. ARTICLE 14 MATERNITY / PARENTAL LEAVE Section 1: The Company will grant pregnant employees leaves of absence without pay under the following conditions: A. The pregnant employee must have worked for the Company at least six (6) consecutive months when the leave begins; and, B. Under normal circumstances the leave period can begin no sooner than twelve (12) weeks immediately preceding the estimated date of delivery; and, C. The leave must include at least six (6) weeks immediately following the actual date of delivery; and, D. The leave period cannot exceed eighteen (18) weeks plus any additional time between the estimated and actual dates of delivery as defined by the Alberta Employment Standards Code plus up to an additional three (3) weeks following delivery if the employee furnishes a medical certificate certifying the employee's inability to return to work. Section 2: The Company reserves the right to require a medical certificate stating that the employee is pregnant and estimating the date of delivery. Section 3: The Company reserves the right to require a pregnant employee to begin maternity leave during the twelve (12) weeks immediately before the estimated date of delivery rather than allowing the employee to work up to the date of delivery by giving written notice of the Company's determination that the pregnancy interferes with the employee's work performance. Section 4: The employee should give the Company at least two (2) weeks written notice of the day the employee plans to begin maternity leave. The employee must give the Company at least two (2) weeks written notice of the day the employee plans to resume work. Section 5: The employee will be reinstated without loss of seniority to their previous job or a comparable job at the same rate of pay if they resume work.

13 ARTICLE 15 PARENTAL/ADOPTION LEAVE Section 1: Employees are entitled to a total of thirty-seven (37) weeks for the purpose of Parental Leave combined between both parents. New mothers that wish to take Maternity and Parental Leave must take the leaves consecutively. New fathers are also entitled to Parental Leave. This leave must be taken within twelve (12) months of their child s birth. This leave can be split between parents. Total weeks combined by both parents cannot exceed thirty-seven (37) weeks. Section 2: The employee shall give the Company at least six (6) weeks written notice of the day the employee plans to begin parental leave. The employee shall give the Company at least two (2) weeks written notice of the day the employee plans to resume work. Section 3: The employee will be reinstated without loss of seniority to their previous job or a comparable job at the same rate of pay if they resume work, following parental leave. Section 4: Adoptive parents are entitled to parental leave regardless of the age of the adopted child. ARTICLE 16 COMPASSIONATE CARE LEAVE Section 1: The Company will abide by all legislative requirements in regards to compassionate care leave. ARTICLE 17 GRIEVANCE PROCEDURE Section 1: The Union shall designate a reasonable number of stewards for each department and the Company shall be advised in writing of the names of such stewards and the department each steward will represent. Only such stewards as are so named shall be recognized. Section 2: A grievance is defined as a difference between the Company and an employee or the Union as to the interpretation, application, operation, or alleged violation of any provision of this Agreement. The Company and the Union agree that grievances should be resolved promptly; however, the right to present and investigate grievances during working hours will be exercised only at reasonable and mutually convenient times and shall not interfere with production. The Company will allow an employee the right to a steward's presence at all discipline. If such steward is readily available, the company will have a union designated steward or a union designated alternative steward present during the discipline. Before an employee is disciplined, the parties will jointly investigate the incident that gives rise to the potential discipline. When an employee is being suspended or terminated, the steward will interview the employee before the employee leaves the premises. The interview will take place in an appropriate area designated by the Company. If a steward needs to interview witnesses in relation to the incident, the Company will allow such an interview as soon as possible, except there is no guarantee that witness interviews will always be held on Company time and the steward must accept responsibility for using their own time if necessary to conduct the investigation. An employee has the right to choose an interpreter of their

14 choice from a list of interpreters mutually agreed upon by the Company and the Union at any discipline or step of the grievance procedure. Employees will not stop working on account of their grievances. When a grievance is satisfactorily resolved at any step, such settlement will be reduced to writing and is final and binding. Time limits are mandatory but may be extended by mutual agreement. Grievances may be filed by the Union, or the Company. Copies of all discipline will be forwarded to the union. Section 3: The employee who has a difference will discuss it with his/her department supervisor within three (3) working days after the employee should have known about the occurrence of the event out of which the difference arises or the matter will be considered closed. The employee may request the presence of a department steward at this step. The Company s answer will be given within five (5) working days of the close of the investigation. Grievances will be resolved progressively in the following manner; all grievances will be heard by the appropriate Company representative who has the authority to settle the grievance. First Step: The steward with or without the employee, will meet the appropriate management person to resolve the issue within three working days of the event which gave rise to the issue. The Company s answer will be given within five (5) working days of the first step meeting. Second Step: If the difference is not satisfactorily resolved in Step 1, the difference becomes a grievance. The employee and his/her department steward has five (5) working days following the Step 1 meeting to reduce the grievance to writing, sign it, and deliver it to the Human Resources Department or the matter will be considered closed. The written grievance must state the problem, the date of the event out of which the grievance arises, the employee's name, the applicable provisions of the Agreement which the employee relies on for support, and the requested remedy. The next week on a mutually agreed upon day, the Complex Manager or their designated representative will discuss the grievance with the union grievance committee of not more than three (3) members and the employee if he/she chooses. If the grievance is not satisfactorily resolved in Step 2, the Union has five (5) working days after receipt of the Complex Manager s answer to submit the grievance to the Third Step or the matter will be considered closed. The Company s answer will be given within five (5) working days of the 2nd step meeting. Third Step: If the grievance is not satisfactorily resolved in Step 2, the Complex Manager or his designee and the Human Resource Manager and the union grievance committee of not more than five (5) members will meet to resolve the grievance if possible. The Company s answer will be given within ten (10) working days of the 3rd step meeting. If it is not satisfactorily resolved, it may then be submitted to arbitration upon written request of either party to the other within ten (10) working days of the Company s third step meeting answer or the matter will be considered closed.

15 Section 4: Any employee who feels he/she has been unjustly dismissed has three (3) working days following receipt of notice of dismissal to file a written grievance with the Human Resources Department and the Union. Thereafter, the grievance will be dealt with beginning at Step 2. Section 5: The party requesting arbitration shall request in writing the Director of Mediation Services of the Province of Alberta to appoint a single arbitrator. Section 6: The arbitrator's award is final and binding on the parties and on every employee affected by it. The Company and the Union shall each pay its own expenses in arbitration. The Company and the Union shall equally share compensation of the neutral arbitrator for services and the expenses for the hearing room. Section 7: Arbitration shall be limited to one issue at any one time. The arbitrator shall have no power to alter, amend, change, add to or subtract from the wages, terms, or conditions of the collective agreement or any agreement made supplementary hereto. Section 8: The Union agrees that the foregoing grievance and arbitration procedure provides the exclusive forum for a bargaining unit employee to remedy a claim of unjust dismissal or suspension for any and all causes. Furthermore, the Union agrees that the exclusive remedy for unjust dismissal for any and all causes is reinstatement either with or without full or partial backpay and full or partial seniority in the judgment of the arbitrator. Section 9: The duly authorized representatives of the Union shall have the right to visit the workplace to inspect working conditions and to generally carry out the terms of this agreement, provided they report to the Human Resources Manager and provided that this right shall be exercised only at reasonable and mutually convenient times and shall not interfere with production. ARTICLE 18 BULLETIN BOARDS / UNION OFFICE Section 1: There shall be at all times maintained in the plant one (1) glass enclosed bulletin boards for the use of the Union. Notices may be posted on such bulletin boards for such matters as Union meetings, social affairs, recreational affairs and Union elections and appointment. Other notices may be posted subject to the approval of the General Manager or his designated representative as to their contents. Section 2: The Company will provide a Union office for the Union filing cabinets and for the Union to conduct its business. ARTICLE 19 CLOTHING, TOOLS AND EQUIPMENT Section 1: Following the employee s probationary period and each January thereafter, the Company will give each employee one hundred ($100) dollar cash allowance for the purchase of safety shoes. Section 2: Upon completion of an employee s probationary period they will be issued one (1)

16 cooler jacket which will be replaced as necessary. Section 3: The Company will furnish all employees with the clothes, tools and equipment necessary to perform their jobs safely including mechanics hand tools. Section 4: Employees will be responsible for the maintenance and good condition of all tools and equipment purchased from or furnished by the Company. The Company will replace furnished items when they wear out or break through ordinary wear and tear upon surrender of the worn out or broken item. Section 5: Employees will be required to replace items which are determined to be lost, damaged, or broken through their misuse or negligence. Section 6: The Company will reimburse employees to renew necessary licenses required to perform their job. ARTICLE 20 SAFETY Section 1: The Company and the Union agree that safety in the workplace and the protection of all employees are of primary importance. Safety is a shared responsibility and the input of all employees to improve safety practices and conditions is encouraged and expected. Plant safety programs and efforts will be coordinated through the involvement of people from all levels of the organization. Section 2: The Company will give all employees a safety handbook which details Company policy, rules, guidelines, and safety information. The handbook will be reviewed and updated as needed. Section 3: The Company and the Union will establish a safety committee to insure and promote safety at and away from work. The safety committee will also identify potential ergonomic problem areas and potential solution. 1. There will be an equal number of management and union employees on the committee. There will be a minimum of one (1) employee and management from each of the following areas. The Company will determine the number of people on the committee. a. Processing b. Packaging c. Distribution d. Maintenance 2. Union members shall be appointed by the Union. Section 4: The Company and the Union agree to cooperate in making the safety programs work. If the Union is concerned about the Company's commitment to provide a safe workplace, the Union's Business Agent will resolve those concerns with the Plant Manager.

17 Section 5: The Union as part of the joint health and safety committee may review job tasks where there is a safety or an ergonomic concern. ARTICLE 21 GENERAL Section 1: The Company is not opposed to production employees becoming maintenance employees and, to that end, agrees to post information including necessary skills on available maintenance jobs which becomes open. Interested production employees can submit their qualifications and make their interest in the maintenance job known to the Human Resources Department. If the skills required are less than journeyman trade skills, successful candidates must pass the appropriate apprentice entrance exam. If their qualifications are equal and they meet Company requirements, the entry level maintenance positions will be filled by seniority and may be indentured into the apprenticeship program subject to Company needs. If no successful candidates are found within the bargaining unit, the Company may hire externally. The Union is entitled to review successful candidate qualifications if it is determined that a less senior employee has more qualifications. Section 2: In enforcing its attendance regulations and work rules, the Company will not base individual disciplinary decisions on attendance violations occurring more than one (1) year and on work rule violations occurring more than two (2) years before the date of the current incident. Section 3: The Company will provide new employees the following Union supplied information during orientation: A. A copy of the collective bargaining agreement; B. A list of officers, stewards, and safety representatives in the respective departments; and C. A union pamphlet approved by management. Section 4: The Company will use a four-step progressive disciplinary procedure for misconduct which is less than serious as defined by the Company excluding attendance and safety violations. The four-step procedure includes a disciplinary notice, written warning, final written warning and before termination. The grievance procedure still applies. Section 5: The Company will grant a Business Agent fifteen (15) minutes to meet new employees during the new hire orientation. Section 6: The Company will pay for half the cost to produce the collective agreements. Section 7: The Company will maintain a payroll administered group registered retirement savings plan. Section 8: The Company s policy will be to issue a manual cheque for any company caused paycheck error or backpay amount greater than four (4) hours pay. Grievance resolves will be processed on the next pay cheque cycle.

18 Section 9: Plug-ins will be provided at no cost to the employee. Section 10: When an employee is transferred to work where the job rate is lower, as a direct result of the introduction of new equipment or where an employee remains on a job reduced in value following a technological change, their level rate will not be reduced for a period of one (1) year. However, in the event the employee bids to a new position they will be paid the applicable rate of pay for that position. ARTICLE 22 PENSION Section 1: The employees in the pension fund will be required to match the current weekly contribution and the increased amounts listed below. Employees will be allowed to maximize their contribution per year as determined by Revenue Canada. The Company and the employee s contribution into the Pension Plan will not be affected by increases or decreases in the Canada Pension Plan. Section 2: The Pension Plan for all employees with seniority is required. To receive the Company portion, employees must contribute to the Pension Plan. Section 3: Employees will be entitled to participate in the Pension Plan after two (2) years of employment. Section 4: The Company will contribute twenty-three dollars and fifty cents ($23.50) in 2015 and twenty-four dollars and twenty four cents ($24.24) in 2018, per week on behalf of all employees entitled to be members of the pension fund. The pension is calculated on a forty (40) hour workweek at fifty-nine to sixty-one cents per hour ($.59 to $.61) to a maximum of twenty-three dollars and fifty cents to twenty-four dollars and twenty four cents ($23.50 to $24.24) a week. If an employee gets paid less than forty (40) hours, the pension is calculated as follows: Hours worked x $0.59 = weekly contribution for 2015 Hours worked x $0.61 = weekly contribution for 2018 ARTICLE 23 WAGES Section 1: The wage schedule for employees covered by this Agreement is attached hereto in the form of Exhibit I and hereby made an integral part of the Agreement. The jobs shall be placed in the following pay levels: Production Level 1 - $.50 Level 2 - $1.00 Level 3 - $1.25 Level 4 - $1.50

19 Section 2: Wage Increases January 5, $.40 January 4, $.30 January 2, $.30 January 1, $.20 Effective January 5, 2015 the base labour rate shall be $16.75 Effective January 4, 2016 the base labour rate shall be $17.05 Effective January 2, 2017 the base labour rate shall be $17.35 Effective January 1, 2018 the base labour rate shall be $17.55 Maintenance Wages Effective January 5, 2015 the rate shall be $36.41 Effective January 4, 2016 the rate shall be $37.41 Effective January 2, 2017 the rate shall be $38.41 Effective January 1, 2018 the rate shall be $39.41 Section 3: The difference between the start rate and the base rate will never be greater than $1.20 per hour and will be increased by $.60 after six (6) months of employment and to the base rate the 1st (first) Monday after twelve (12) months of employment. When a new employee is accepted as qualified by his supervisor, the new employee shall be paid the level for the job they are performing. Section 4: If the Company creates a new job classification, or combines existing job classifications, the Company will establish a wage for such new or changed job classification and notify the Union in writing within thirty (30) days. The Union has seven (7) calendar days thereafter to object to the rate set, and the matter will then be subject to negotiations between the Company and the Union. If negotiations do not successfully resolve the matter, the matter will be subject to the Grievance Procedure as outlined in Article 16. Section 5: Thirty-five cents ($.35) per hour of added compensation will be paid for work between the hours of 6pm and 6am. ARTICLE 24 BENEFITS Section 1: Employee s monthly contributions for benefits will equal twenty-five (25%) percent of the total contributions as necessary to cover the average Company medical costs per covered employee. If during the term of this agreement the average cost per covered employee of the Company s benefit program should increase or decrease, the employee s contribution will increase or decrease to equal twenty-five (25%) percent of the total Company s benefits costs. On April 1 st

20 of each new calendar year, new contribution levels will be increased or decreased if applicable. Upon ratification notwithstanding the previous paragraph, employees will pay a weekly contribution for health and welfare benefits of 25% of Company s benefit programs cost subject to the bi-weekly caps defined below $ $ $ $25.00 Section 2: The Company will provide regular full-time employees with a comprehensive individual and family insurance program on the first of the month following completion of six (6) months of employment. The benefit levels will be subject to the Grievance and Arbitration procedure. Information concerning these benefits is outlined in a separate benefits handbook which is incorporated herein by reference. All matters of administration shall not be subject to the Grievance or Arbitration provisions of this agreement. The Company will furnish a copy of the STD summary plan document to the Union. ARTICLE 25 FLEXIBLE EMPLOYEES Section 1: The flexible work group is comprised of permanent part-time employees who commit to work a minimum of four (4) shifts biweekly through a posted schedule. The flexible work group is to supplement the full time employee not to permanently replace. The schedule will be posted weekly. The assignment of open shifts will be based on the employee s preference and in accordance with the employee s seniority; the employee s preference is limited to available shifts. This is not a guarantee of work. Where available shifts remain open after taking into account employee seniority preference, the junior employees, in reverse order are assigned to the open shifts Temporary vacancies as a result of a full time employee being on vacation, short term disability, long term disability, maternity leave or unpaid leaves of absences will be posted for the flexible work group and awarded by seniority. The part time employee must commit to working in this position for the duration of the opening. A flexible worker will be paid the applicable rate of pay for the job performed. A flexible worker will receive no benefits except for WCB, CPP, EI and Vacation Pay. Section 2: Time and one-half will be paid for all hours worked in excess of forty (40) hours per week or nine (9) hours per day. Section 3: A flexible workers probationary period will be five hundred (500) hours. The flexible workers seniority list shall be separate from the full time seniority list. This list shall show the total amount of hours worked for each part time employee. This list shall be posted quarterly.

21 Section 4: When posting from part time to full time, an employee s seniority shall be converted from total hours to days of seniority on the full time seniority list; (i.e. employee with eight hundred (800) hours will equal twenty (20) weeks of full time seniority. The seniority date will be twenty (20) weeks prior to being awarded the job). When posting from full time to part time status, an employee s full time seniority shall freeze, effective the first part time shift. No full time seniority shall be carried to the part time seniority list. Section 5: The Company may hire up to fifteen percent (15%) of the workforce as part of the flexible workforce. ARTICLE 26 VALID AGREEMENT If any provision of this Agreement is declared invalid by any court or administrative agency of competent jurisdiction, a decision shall not invalidate the entire Agreement. The parties intend that all other provisions remain in full force and effect. The parties further agree to amend this agreement to fully comply with requirements of applicable law. ARTICLE 27 WAIVER Section 1: The Company and the Union acknowledge and agree that during the negotiations which resulted in this Agreement, each had the unlimited right and opportunity to make demands and proposals with respect to any subject or matter included by law within the area of collective bargaining and that all the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this Agreement. Section 2: For the life of this Agreement, the Union and the Company voluntarily and unqualifiedly waive their right to require further collective bargaining, and agree that they shall not be obligated to bargain collectively with respect to any matter or subject not specifically referred to or covered in this Agreement, whether or not such matters or subjects have been discussed, even though such matters or subjects may not have been within the knowledge or contemplation of either or both parties when they negotiated or signed this Agreement. This Agreement contains the entire contract, understanding, undertaking and agreement of the parties hereto and finally determines and settles all matters of collective bargaining for and during its term, except as may be otherwise specifically provided herein. This section will not be effective until the termination of the present agreement. ARTICLE 28 TERM OF THE AGREEMENT Section 1: During the term of this Agreement there shall be no strike, work stoppage, or deliberate withholding of production or suspension of work on the part of the Union or its members or lockout on the part of the Company. The Union further agrees that it will in no way interfere with the

22 business of the Company by sanctioning or conducting a boycott on the handling of goods procured from a source or destined to a point where a labour controversy may exist. Section 2: The Company shall have the right to determine the discipline given an employee or employees for breach of this Article, and such discipline will not be subject to the grievance procedure. The question of fact as to whether or not any particular employee engaged in or participated in any such violation may be subject to the grievance procedure in the Agreement including arbitration. Section 3: This agreement shall become effective January 01, 2015 and remain in full force and effect through December 31, This Agreement shall be automatically renewed from year to year thereafter unless either party gives written notice to the other by registered or certified mail of its desire to terminate or amend not less than sixty (60) days and not more than one hundred twenty (120) days preceding the expiry of the term. IN WITNESS THEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives and officers this 29 th day July, UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION LOCAL NO.1118 CARGILL LIMITED CARGILL FOODS DIVISION