ARTICLES OF AGREEMENT BETWEEN. SAPUTO FOODS LIMITED Wetaskiwin. hereinafter called the "Company" AND

Transcription

1 BETWEEN SAPUTO FOODS LIMITED Wetaskiwin hereinafter called the "Company" AND INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 hereinafter called the "Union" (J une 29, May 31, 2012) Page 1

2 TABLE OFCONTENTS SAPUTO FOODS LIMITED Wetaskiwin and INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 ARTICLE NO.1 - GENERAL PURPOSE....4 ARTICLE NO.2 - RECOGNITION....4 ARTICLE NO.3 - UNION SECURITY....4 ARTICLE NO.4 - MANAGEMENT RIGHTS....4 ARTICLE NO.5 - COMMITTEES AND REPRESENTATIONS... 5 ARTICLE NO.6 - LAYOFF AND RECALL ARTICLE NO.7 - CONTRACTING OUT & TECHNOLOGICAL CHANGE... 6 ARTICLE NO.8 - HOURS OF WORK... 6 ARTICLE NO.9 - OVERTIME... 7 ARTICLE NO CALL-BACK... 8 ARTICLE NO SENIORITY... 8 ARTICLE NO TEMPORARY SENIOR WORK... 9 ARTICLE NO GRIEVANCE PROCEDURE... 9 ARTICLE NO PAYDAYS ARTICLE NO SHIFT PREMIUM ARTICLE NO LEAVE OF ABSENCE ARTICLE NO BEREAVEMENT LEAVE ARTICLE NO NAMED HOLIDAyS ARTICLE NO MEAL ALLOWANCE ARTICLE NO VACATION ARTICLE NO SICK LEAVE ARTICLE NO WORKERS' COMPENSATION ARTICLE NO TERMINATION ARTICLE NO BULLETIN BOARDS ARTICLE NO TRANSFERS, PROMOTIONS AND APPOINTMENTS ARTICLE NO PROBATIONARY PERIOD ARTICLE NO UNIFORMS ARTICLE NO CONDITION OF EMPLOYMENT ARTICLE NO. 29 _ HEALTH AND WELFARE, AND PENSION ARTICLE NO WAGES AND CLASSIFICATIONS Group Group Group Group Page 2

3 Group Group Group ARTICLE NO GENERAL ARTICLE NO PART-TIME EMPLOyEES ARTICLE NO RETROACTIVITY ARTICLE NO TERM OF AGREEMENT LETTER OF UNDERSTANDING RE: HOURS OF WORK LETTER OF UNDERSTANDING Page 3

4 ARTICLE NO.1 - GENERAL PURPOSE 1 :01 It is the intent and purpose of this Agreement to have the Company and the Union cooperate to obtain an efficient production of dairy products, to provide for the operation and maintenance of the Boiler Room and auxiliary equipment of the Employer, and provide a means for the settling of grievances which may from time to time arise. It is further the intent of this Agreement to set forth certain terms and conditions of employment to be observed between the parties hereto. ARTICLE NO.2 - RECOGNITION 2:01 The Company recognizes the Union as the sole and exclusive bargaining agent for all employees of the Company at Wetaskiwin, excluding Manager, Supervisor, clerical employees, management trainees and laboratory personnel, who are employed under the terms and conditions of this Agreement. No employee shall be required or permitted to make any written or verbal agreement which may be in conflict with the term of the Agreement. ARTICLE NO.3 - UNION SECURITY 3:01 It is agreed that all employees covered by this Agreement shall become members of the Union within thirty (30) days, and remain members in good standing as a condition of employment. 3:02 The Company, shall, for the term of this Agreement, deduct monthly dues from employees who work twenty (20) or more hours in a calendar month, and shall remit same, together with a list of the employees from whom the deductions have been made, to the Union before the 15th of the month following. 3:03 All students or part-time employees who have not worked twenty (20) hours in a month shall not be required to pay union dues for any month, but shall pay two dollars ($2.00) per day while at work, not to exceed the total monthly union dues. ARTICLE NO.4 - MANAGEMENT RIGHTS 4:01 Management reserves all rights not specifically restricted by this Collective Agreement. 4:02 The Company may at any time employ persons in the plant who are learning the business and are recognized apprentices for executive positions, but who are not intended to remain permanently in the plant. No recommendations will be made to such men to make application for membership in the Union. It is understood that while supervisory trainees will perform bargaining unit work during their Page 4

5 training period, no bargaining unit employees will be displaced nor lose regular or overtime hours as a result of such training. ARTICLE NO.5 - COMMITTEES AND REPRESENTATIONS 5:01 The Company will recognize committees as specified below: a) Negotiating Committee - up to three (3) employees who, at the Union's discretion, may have the assistance of counsel and/or a representative of the Union. b) Grievance Committee - the grievor and the job steward shall deal with all grievances up to the end of Step 1 in the Grievance Procedure. At any meeting in Step 2 into Article the Union may, at its discretion, bring in outside assistance to meetings. 5:02 It is agreed that an employee who is a member of the above committee(s) must have at least four (4) months' service with the Company. 5:03 The Business Agent or any duly accredited officer of the Union shall, upon presentation of his credentials to the plant management, be permitted access to the plant in accordance with the standard security policy and department procedures. 5:04 The Company will pay an employee his normal basic rate of pay for time lost while serving on the Grievance committee and meetings with the Company. 5:05 To facilitate the rapid clarification of problems related to the administration of the Collective Agreement, job steward(s) shall be appointed by the Union. To this end, when a job steward is required to leave his job or department, he shall first receive permission from his department head, which permission shall not be unreasonably withheld. He shall not suffer loss of pay for reasonable time spent when the performance of these duties is required during his regular working hours. The Company shall at all times be advised of the name of the current job steward(s). ARTICLE NO.6 - LAYOFF AND RECALL 6:01 In case it becomes necessary to reduce the working force, the lay-off shall be confined to the classification affected, with two working days' notice being given, and the factors to be taken into account by the Company in determining which employees are to be laid off within that classification shall be qualifications and skills, and where these factors are relatively equal, seniority shall prevail. Page 5

6 6:02 Other than the continuance of certain benefits as may be arranged under Article 16 and the retention of seniority held at the time of lay-off, an employee's rights while on layoff shall be limited to the right of recall only. 6:03 Right to recall for a vacancy in the laid-off employee's classification, shall extend for a period of time equal to that employee's length of service, but not to exceed nine (9) months. 6:04 Recall shall be on the basis of seniority provided that the employee laid off has the qualifications, skills and ability to perform the required job. 6:05 The method of recall shall be by telephone and, if contact with the employee is not accomplished, a double registered letter shall be sent to the employee's last known placeof residence. The employee so notified will return to work as soon as possible, but not later than five (5) days following the date of the telephone contact, or the date of delivery of the letter. It shall be the employee's responsibility to keep the Company informed of his current address. ARTICLE NO.7 - CONTRACTING OUT & TECHNOLOGICAL CHANGE 7:01 In the event that the Employer plans change or the contracting out of a portion of present operations and this change or contracting out would result in the lay-off of present employees in the Union, the Company will give the Union two (2) months' notice of such lay-off. 7:02 Where positions under the scope of this Agreement are affected, the Company will give first consideration to placing affected employees in other suitable vacant positions within the Company's premises in Wetaskiwin. ARTICLE NO.8 - HOURS OF WORK 8:01 The normal number of hours worked in a day shall be either: Five (5) eight (8) hour days, or Four (4) - ten (10) hour days. Hours of work must be posted and any changes to these hours after the posted hours will be at the overtime rate. 8:02 The normal number of hours worked in a week shall be forty (40) as averaged over one complete cycle of the shift schedule. (see Letter of Understanding Re: Alternative Work Arrangements). Page 6

7 8:03 Days off shall be consecutive and shall be scheduled in such a manner as to equally distribute weekends (Saturdays and Sundays) amongst employees. The employee shall be provided as many weekends off as possible, but, in any event, not less than two weekends off in six. If on a ten (10) hours per day basis, at least two days will be consecutive. 8:04 If an employee is late beyond a five (5) minute grace period, he will be docked in periods not exceeding fifteen (15) minutes. If, at the request of management, an employee works beyond the end of the shift, he will be paid in periods of fifteen (15) minutes (a 15 minute period must be completed in order to be paid). 8:05 Where an employee reports for work as scheduled and is requested by the Company to return for work on a later shift, the employee shall be paid a minimum of four (4) hours at the regular rate of pay. 8:06 It is recognized that the Company's business is subject to seasonal fluctuations and the Company agrees that during periods of short production, no regular employee shall be required to work less than forty (40) hours per week. 8:07 An employee working before or after his regular schedule, shall be paid the overtime rate provided he wishes to work beyond eight (8) hours if scheduled on an eight hour basis or ten (10) hours if scheduled on a ten hours basis. ARTICLE NO.9 - OVERTIME 9:01 The Company shall determine when overtime is necessary and for what period of time it is required. All authorized time worked in excess of eight (8) hours per day, or ten (10) hours per day if scheduled on a 10 hour basis, shall be paid at the rate of time and one-half (1.5 times) basic rate. 9:02 Employees required to work by the Company on their scheduled days off shall be paid for the first day off worked at the rate of time and one-half (1.5 times) basic rate of pay. 9:03 Employees shall not be required to lay-off during their regular shift to equalize any overtime worked previously. 9:04 An employee required to change shifts without being provided with ten (10) hours off duty shall be entitled to one and one-half (1.5) times basic rate for his first tour of duty on the new shift. Page 7

8 ARTICLE NO CALL-BACK 10:01 First call-back during an off-duty period will be paid for time worked at the applicable overtime rate or a minimum of four (4) regular hours pay, whichever is the greater. 10:02 Four (4) hours work may be required by the Company on a minimum call-back. 10:03 Second or subsequent calls during the same day on an off-duty period will be paid for time worked for a minimum of two (2) hours at the applicable overtime rate as prescribed in Article 9 - Overtime. 10:04 If less than two (2) hours' notice is given for call-back, the provisions of Article 19- Meal Allowance, shall apply. ARTICLE NO SENIORITY 11 :01 "Seniority" is the total length of employment with the Company from the last date of hiring. 11 :02 Seniority is used as: a) a consideration for right of preference for vacation period (within the limitations outlined in Article 20 - Vacations); b) a consideration for lay-off, recall, promotion within the bargaining unit; demotion and transfer if necessary, within the bargaining unit. 11 :03 Seniority will continue to accrue during: a) periods of salary continuation benefits being paid; b) leave of absence; c) Workers' Compensation leaves up to a period of twelve (12) months or Company policy, whichever is greater; d) temporary promotion outside the bargaining unit; e) compassionate leave; f) jury duty and court service; g) vacation period; h) on leaves due to Workers' Compensation Board payments, and Long Term Disability, the job will be held open for a period of twelve (12) months, although the job could be filled immediately by the Employer. 11 :04 Seniority will be re-credited if an employee who was promoted or transferred to a supervisory position outside of the bargaining unit is returned to the bargaining Page 8

9 unit within one (1) year. The employee will also be credited with seniority accumulated in the position outside the bargaining unit. 11 :05 Seniority shall only be lost for: a) discharge for just cause; b) termination; c) failing to report for work on recall after lay-off within five (5) working days from recall. (In the event the Company is unable to contact the employee personally, recall shall be deemed to have been carried out if a registered letter is sent to the last known address of the employee as shown on the Company's records); d) on the expiration of nine (9) months following a lay-off; e) upon retirement. ARTICLE NO TEMPORARY SENIOR WORK 12:01 Any Engineer placed on authorization of the Company with the necessary permits from the Boiler's Branch, in the Engineer in Charge - 3rd Class position for more than one (1) working day, shall be paid retroactive to the date of being assigned as per the applicable rate specified in Article 30. This position will be assigned according to the Boiler's Act. 12:02 If an employee works from one (1) hour to four (4) hours at a higher rate, he will be paid the higher rate for all such hours worked. If he works more than four (4) hours at a higher rate, he will be paid for the full day at the higher rate. ARTICLE NO GRIEVANCE PROCEDURE 13:01 For the purpose of this Collective Agreement, a grievance shall be defined as a difference arising out of interpretation, application, administration or alleged violation of this Collective Agreement. 13:02 STEP ONE If a grievance should arise under this Collective Agreement, the aggrieved party may, within ten (10) calendar days of the occurrence of the event out of which the grievance arose, submit the grievance, in writing, to the steward who shall take it up with the Plant Supervisor. A copy of the written grievance shall be submitted to the Union. STEP TWO If settlement is not reached within fourteen (14) calendar days of submission to the Plant Supervisor, the grievance may, within a further fourteen (14) calendar days, be referred by the representative of the Union to the General Manager of the Page 9

10 13:03 Arbitration Company or his designated representative, who shall respond within fourteen (14) calendar days of receipt of the grievance at this step. If settlement is not reached as a result of the above steps, the grievance may be submitted to arbitration. The grieving party shall within fourteen (14) calendar days of the reply from the manager or his designated representative, notify the other party of its intention to take the matter to arbitration and notify the other party of the name if its appointee to the Arbitration Board at the same time. The other party shall have seven (7) calendar days in which to notify the grieving party of the name of its appointee to the Arbitration Board. The two appointees so named shall meet and endeavour to select a mutually acceptable chairman. If they cannot agree upon a chairman within seven (7) calendar days, they shall apply to the Minister of Labour for the Province of Alberta to appoint a chairman. Within fourteen (14) calendar days of its appointment, the Arbitration Board shall meet to consider the matter in dispute. In reaching its decision, the Arbitration Board shall be governed by the terms of this Collective Agreement and shall not have the power to alter, amend, set aside or add to any provision of the Collective Agreement. The decision of the Arbitration Board shall be final and binding upon the parties hereto. Such decision shall be made within seven (7) calendar days after the Board has completed its meetings. The decision of a majority of the Arbitration Board shall be the award but, if there is no majority, the chairman's decision shall govern. 13:04 Notwithstanding the preceding, the parties may mutually agree to submit a grievance to a single arbitrator within fourteen (14) calendar days of the reply from the manager or his designated representative. Within fourteen (14) days of his appointment the single arbitrator will call a meeting to consider the matter in dispute and will render a decision within seven (7) calendar days of the completion of such meetings. The provisions applicable to an Arbitration Board shall also apply to a single arbitrator. 13:05 The time limits specified throughout this Article may be extended in writing, by mutual agreement between the parties or at the request of the chairman of the Arbitration Board, as the case may be. In the event that the time limit under any Page 10

11 step of the grievance procedure is exceeded without the mutual consent of the other party, in writing, the grievance shall: a) in the case of the Union exceeding the time limit, be dropped, or b) in the case of the Company exceeding the time limit, move up to the next step. 13:06 Except in the case of a period of suspension or in the event of dismissal, the employee shall continue to perform his required duties in a normal manner during any and" all proceedings outlined in this Article. 13:07 Calendar days, as referred to throughout this Article, shall exclude Saturdays, Sundays and named holidays. ARTICLE NO PAYDAYS 14:01 Paydays will be as established by the Company but in no event will employees be paid less frequently than twice monthly. A payday which coincides with a Saturday, Sunday or named holiday, shall instead be the last preceding banking day. Should an error occur which requires an adjustment to an employee's pay cheque, such adjustment shall be made on the next payroll cheque following notification of such error being brought to the attention of the Company. The Company shall pay each employee on his last shift of each pay period. ARTICLE NO SHIFT PREMIUM 15:01 A shift premium of sixty cents ($.60) shall be paid for all hours worked between the period of 1800 to 0700 hours. Shift premium shall not be considered part of the basic rate of pay. Overtime worked between 1800 and 0700 hours shall be paid at the shift premium rate. ARTICLE NO LEAVE OF ABSENCE 16:01 A request for leave of absence without payor benefits must be made, in writing, to the proper officer of the Company one (1) month in advance, except that in extenuating circumstances the time factor may be reduced. GranHng of leave of absence is subject to the approval of the Company. 16:02 Benefits do not accrue during any leave of absence without pay in excess of six (6) months. When an employee has been granted leave of absence, such employee shall retain all seniority rights earned up to the date of commencement of leave. Seniority shall continue to accumulate during leaves of absence of six (6) months or less duration. Page 11

12 16:03 In the case of leaves of absence of more than six (6) months' duration, employees shall make prior arrangements for the payment of the full premium of any contributory benefit plans such as pension, Alberta Health Care, Alberta Blue Cross, etc. 16:04 When an employee overstays his leave of absence without permission of the Company and without reasonable cause, he shall be considered to have terminated his employment. 16:05 Representatives of the Union, up to a maximum of three (3), shall be granted time off without loss of payor seniority, in order to participate in negotiations with the Company. 16:06 The Company shall grant leave of absence without loss of seniority to an employee who is required, by law, to serve as a juror or witness in any court. The Company shall pay such employee the difference between his normal earnings and the payment he receives for services as a juror or court witness, excluding payment for travelling, meals, or other expenses. The employee will present proof of such service and the amount of pay received. 16:07 Subject to sufficient notice being given to the Company, an employee will be granted time off with pay to write a Boiler'S Branch or Trades examination. 16:08 A rotating shift work employee, upon advising management, may trade shifts provided no penalty is assessed the Company as a result thereof. ARTICLE NO.17 - BEREAVEMENT LEAVE 17:01 An employee shall be granted a bereavement leave of three (3) working days off with pay on the death of a member of the employee's immediate family, ie. children, parents, grandparents (including spouse's grandparents), brothers, sisters, spouse (including common-law spouse), mother-in-law, father-in-law, legal guardian, step-children, brother-in-law and sister-in-law. An employee shall be granted one (1) working day off with pay for the purpose of attending the funeral on the death of the employee's brother-in-law, sister-in-law and step-children. 17:02 Bereavement leave shall be extended by up to two (2) days if travel in excess of four hundred (400) kilometres from the employee's residence is necessary. 17:03 Bereavement leave shall include normal days off, days on lay-off, days on leave of absence and vacation days but no additional payment is due therefore. Page 12

13 ARTICLE NO NAMED HOLIDAYS 18:01 Employees shall be entitled to a day off with pay on or for the following named holidays: New Year's Day Good Friday Victoria Day Canada Day 1 st Monday in August Family Day Labour Day Thanksgiving Day Remembrance Day Christmas Day Boxing Day If a general holiday is recognized by any other Company group of employees, the Wetaskiwin employees will get the holiday. 18:02 To qualify for named holiday pay, an employee must: a) work his last scheduled shift prior to the holiday and his first scheduled shift following the holiday, except where absence is due to illness substantiated by a doctor's certificate; b) work on a holiday that he is scheduled or required to do so; c) not be on leave of absence, Workers' Compensation, or lay-off. 18:03 An employee obliged in the course of duty to work on a named holiday shall be paid for all hours worked on the named holiday at time and one-half (1.5) his regular rate plus: a) one regular day's pay, or b) a mutually agreed day off with pay within thirty (30) days either before or after the holiday, or c) by mutual agreement, a day added to his next annual vacation. 18:04 Should a named holiday fall during an employee's vacation period, he shall be allowed an extra day for such named holiday. Should it not be possible for the employee to take such extra day in connection with his vacation, he shall be allowed the extra day within one (1) month. 18:05 When a named holiday falls on a day that would otherwise be an employee's regularly scheduled day off, the employee shall receive an alternate day off. Where such alternate day off cannot be arranged within thirty (30) days of the holiday, the employee shall receive one (1) regular day's pay in lieu of the holiday. Page 13

14 18:06 Employees working on an eight (8), ten (10), or twelve (12) hour shift shall be paid these hours for the named holidays. ARTICLE NO MEAL ALLOWANCE 19:01 An employee who is required to perform overtime work in conjunction with his regular shift of a duration greater than two (2) hours, shall be supplied with a meal or payment of seven dollars and fifty cents ($7.50) in lieu thereof. ARTICLE NO VACATION 20:01 Vacation Entitlement a) Each employee will be eligible for two (2) weeks' vacation after having worked continuously for twelve (12) full months and having passed his anniversary date of employment. b) Each employee will be eligible for three (3) week's vacation any time after January 1 st in the year in which he will have completed four (4) years of service. c) Each employee will be eligible for four (4) weeks' vacation any time after January 1 st in the year in which he will have completed eleven (11) years of service. d) Each employee will be eligible for five (5) weeks' vacation any time after January 1 st in the year in which he will have completed twenty-two (22) years of service. e) Vacation pay for each week of vacation will be the average of regularly scheduled weekly hours times the employee's straight time hourly rate at the time of taking vacation. f) Prorated vacation for the employees who work less than one (1) year will be paid as provided in the Alberta law. g) For vacation purposes, the relief engineer, if any, will cover the shift of the engineer on vacation wherever practicable. Page 14

15 20:02 Vacation Pay on Termination a) If employment is terminated by the Employer: 1) after less than one (1) year of employment with the Company, or 2) without giving proper notice pursuant to the Article regarding Termination of Service, he shall receive vacation pay in accordance with Alberta law. b) In the event an employee resigns or is terminated, vacation pay will be determined as follows: If the resignation occurs prior to the anniversary date for the current calendar year, vacation pay will be calculated at 2% of regular earnings for each week of entitlement from the previous anniversary date to the date of termination less any vacation actually taken during the current calendar year. Any vacation overpayment will be deducted from final earnings. If the resignation occurs after the anniversary date for the current calendar year, vacation pay will be calculated at 2% of regular earnings for each week of entitlement from the anniversary date to the date of termination plus any vacation entitlement not taken in the current calendar year. c) When an employee is discharged for cause, vacation pay shall be at the rate prescribed in the subsisting order of the Labour Relations Board. 20:03 Time of Vacation Vacations are not cumulative. Vacations earned during one vacation year shall be taken by mutual agreement during the next following vacation year, provided that vacation earned in one vacation year shall not be taken consecutively with vacation earned in the following vacation year, except with the approval of the Company. 20:04 The Company will, before the fifteenth (15th) day of March in each vacation year, post a schedule for employees showing their accumulated vacation time up to and including April 30th of that vacation year. By March 31st, following the posting of the above schedule, all employees shall indicate their preferred vacation period for the upcoming vacation year. Seniority shall be considered where there is a dispute regarding preference for time when vacations are scheduled by the Company. In no case shall an employee be allowed to exercise such seniority rights more than once per vacation year until such time as all other employees have had an opportunity to exercise seniority rights in this regard. The exercising of seniority rights referred to above, shall be limited to one period of consecutive vacation time and the same procedure shall apply to any remaining disputes Page 15

16 regarding preference for times when vacations are scheduled. 20:05 Should an employee demonstrate to the satisfaction of the Company that he was admitted to a hospital as an "in patient" during the course of his vacation, he shall be considered to be on sick leave for the period of the stay in hospital, subject to the provisions of Article 21 - Sick Leave. Vacation time not taken as a result of such stay in hospital shall be taken at a mutually agreeable later date. 20:06 Each week of vacation pay will be equal to the average of regularly scheduled weekly hours. 20:07 Employees may split their vacations in one (1) week periods up to December 15th of each year. ARTICLE NO SICK LEAVE 21 :01 Refer to "Saputo Foods Limited Employee Benefits Plan". 21 :02 Employees may be required to submit satisfactory proof to the Company of any illness, non-occupational accident or quarantine. 21 :03 When an employee is absent from duty because of illness, all benefits (vacation, sick leave, etc.) will accrue only for such period of time as he is on paid sick time. 21 :04 a) Employees working an alternative shift (e.g. 10 hrs/day, 12 hrs/day) and unable to work due to illness may be eligible to receive pay for hours lost to a maximum accumulation of 56 hours per calendar year. b) An employee who has worked the complete calendar year shall receive a payout of 100% of his accrued sick leave, providing the employee has not received a Documented Warning concerning attendance. ARTICLE NO WORKERS' COMPENSATION 22:01 Workers' Compensation Board coverage will be provided by the Company for employees. In accordance with the Income Tax Act, Workers' Compensation benefits are not taxable. 22:02 Employees shall not be paid sick leave benefits when they are absent from work and drawing Workers' Compensation benefits. An employee absent on Workers' Compensation for a period in excess of thirty (30) working days shall not accumulate sick leave credits or vacation accrual during the period of absence. Page 16

17 This will not affect the employee's years of service for the purposes of earning additional vacation entitlements as per Article :03 Clause 22:02 above shall not exclude an employee from sick leave benefits for periods of absence resulting from an accident which is non-compensable under the Workers' Compensation Act. ARTICLE NO TERMINATION 23:01 The Company may terminate the services of an employee by giving: a) seven (7) calendar days' notice, in writing, to an employee who has been employed by the Employer for more than three (3) months but less than two (2) years. b) fourteen (14) calendar days' notice, in writing, to an employee whose period of employment is two (2) years or more. 23:02 An employee intending to terminate his service with the Company shall give notice, in writing, as specified in Clause 23:01 a) or b) above, whichever is applicable, depending on his length of employment. An employee who is absent without leave will be considered to have terminated his employment. 23:03 An employee who is discharged shall receive his wages and vacation pay to which he is entitled at the time he leaves the Company. An employee who voluntarily leaves the employ of the Company with proper notice shall receive the wages and vacation pay to which he is entitled on his last scheduled working day. 23:04 a) A full time regular employee who is permanently laid off due to the discontinuance of an operation shall receive notice or pay in lieu of notice in accordance with the Employment Standards Code. b) In addition, the Company shall provide 'severance pay' consisting of the following schedule: More than 3 months, and Less than 2 yrs Less than 4 yrs Less than 6 yrs Less than 8 yrs Less than 10 yrs Less than 12 yrs Less than 14 yrs Less than 16 yrs Employment Standards Code 1 wk 2 wks 4 wks 5 wks 6 wks 8 wks 8 wks 8 wks Severance Pay 1 wk 2 wks 3 wks 4 wks 5 wks 6 wks 7 wks 8 wks TOTAL 2 wks 4 wks 7 wks 9 wks 11 wks 14 wks 15 wks 16 wks Page 17

18 Less than 18 yrs More than 20 yrs 8 wks 8 wks 9 wks 12 wks 17 wks 20 wks c) An employee accepting severance pay under this schedule shall be considered terminated. d) In the event vacancies arise at other Company locations, the Company shall give priority consideration to the re-hire of suitable employees. ARTICLE NO BULLETIN BOARDS 24:01 The Company agrees that the Union may use bulletin boards for the purpose of posting meeting notices or such other notices as may be of interest to the employees. It is not the intention of the Union or the Company to post anything objectionable. ARTICLE NO TRANSFERS, PROMOTIONS AND APPOINTMENTS 25:01 A promotion means a move to a higher paid classification contained in this Collective Agreement and, similarly, a demotion means a move to a lower paid classification contained in this Collective Agreement. 25:02 All applications for promotion shall be made, in writing, to such officer as the Company may designate. 25:03 Applicants for promotion shall be informed, in writing, of their acceptance or rejection within five (5) working days of the date of the appointment. 25:04 In making promotions and demotions; the determining factors shall be qualifications, skills and merit, and, where these factors are judged by the Company to be equal, seniority shall be the deciding factor. 25:05 Transferred or promoted employees shall be considered on a trial period in their new position for three (3) months following the date of transfer. A transferred or promoted employee who is absent for any reason on a scheduled work day may have his trial period extended by the number of working days equal to the number of working days absent. Should, in the opinion of the Company, such employee fail to succeed during the above mentioned trial period, the Company will reinstate the employee in his former classification. There will be no downward bidding without Company approval. During the three (3) month period a vacated job may be filled on a temporary basis. 25:06 When an employee is promoted from one classification to another, the rate of pay of such promoted employee shall advance to the start rate of the new classification. If the start rate of the new classification is lower than the Page 18

19 employee's rate in the old classification, the employee shall remain at his old rate during the trial period and advance to the next higher rate at the end of the trial period. An employee's anniversary date for the purpose of advancement to the job rate of pay shall not be changed as a result of a promotion. 25:07 When because of inability to perform the functions of a position or because of health or because of an employee's request, an employee is demoted, his rate will not be adjusted immediately to the job rate of the position to which he is demoted but will remain at the higher rate for sixty (60) days. 25:08 When a vacancy occurs in any classification covered by this Collective Agreement, such vacancy shall be posted in the plant for five (5) calendar days as a general posting. 25:09 When circumstances require the Company to fill a vacancy before expiry of the five (5) calendar days, the appointment shall be made on a temporary basis only until a permanent appointment is made. ARTICLE NO PROBATIONARY PERIOD 26:01 A new employee appointed to a position included in this Collective Agreement, shall serve a probationary period of one hundred and twenty (120) days from the date of his commencement of service. If an employee demonstrates his ability to perform the job satisfactorily, he will not be required to wait the full 120 days. Notwithstanding anything contained elsewhere in this Collective Agreement, if a new employee is unsatisfactory in the opinion of the Company, he may be discharged at any time during his probationary period, and such discharged employee shall not have recourse to the grievance procedure. 26:02 An employee who terminates employment with the Company after completing his probationary period, and who is rehired by the Company within one (1) year from his date of termination, shall advance to the job rate, however, he shall be subject to all other terms and conditions of this Collective Agreement as they affect a probationary employee. ARTICLE NO UNIFORMS 27:01 The Company agrees to supply, at no cost to the employee, suitable work clothing, i.e. uniforms, coveralls, overalls, smocks, and shall be responsible for the laundering and/or dry cleaning and repairing of same. Employees will be required to take reasonable care of such clothing and will, at all times, deposit such clothing in receptacles provided. All plant employees that have completed their probationary period prior to November 1 st of each year, will receive one hundred ($100.00) per year towards Page 19

20 the purchase of steel toed safety boots. ARTICLE NO CONDITION OF EMPLOYMENT 28:01 Employees may, as a condition of employment, be required to take a medical examination by a medical practitioner mutually acceptable to both employee and Company. The medical practitioner's fee shall be paid by the Company. 28:02 Employees may be required to be bonded. ARTICLE NO HEALTH AND WELFARE, AND PENSION 29:01 Refer to "Saputo Foods Limited Employee Benefits Plans". 29:02 See Company Dental Benefit Plan. 29:03 See Letter of Understanding Re: New Employee Pension. 29:04 The Company shall pay 100% of the Alberta Health Care premium. Page 20

21 Grou~ 1 ARTICLE NO WAGES AND CLASSIFICATIONS RATES PER HOUR 1 SI l2alll2eriod 1 S l2alll2eriod 1 SI l2alll2eriod 1 SI l2alll2eriod 1 SI l2alll2eriod 1 SI l2alll2eriod June 2006 June 2007 June 2008 June 2009 June 2010 June 2011 Electrician Engineer in Charge (3 rd Class) Grou~ 2 Pan Operators Head Warehouseman JEvap. Plant) Grou~ 3 Engineering (4th Class) Maintenance Grou~ 4 Sterilizer Operator Labeller Operator Relief Operator I, Grou~ 5 Filler Operator - Evap. Plant Warehouseman - Evap. Plant Grou~ 6 General Plant Help - (after mos.) General Plant Help - (after mos.) General Plant Help & Part Time (Start) Grou~ 7 : Promotional Position I I I I - - Page 21

22 WAGE ADJUSTMENTS Wages only are retro-active and will be in effect as of the first pay period in June All future wage increases will take effect the first pay period of June of that year. For 2006, a two hundred dollar ($200) signing bonus for each regular full time employee (pro-rated for part-time employees) effective the first pay period following the ratification of the memorandum of agreement. Effective the following dates, the hourly wage rates only shall be increased as at the beginning of the first pay period in June as follows: % % % % % % Note: Leadhand will receive one dollar ($1.00) per hour above their classification. This will not be a bid position. 3rd Class Engineers shall not be paid this premium. LEADHAND The necessity of a lead hand shall be at the discretion of the Company and shall be defined as follows: An employee who shall direct the work of other employees while performing the work himself. He shall not have the authority to hire, fire, suspend or discipline employees. EQUIPMENT OPERATORS Responsible under the direction of the Plant Supervisor for the operation, care, cleaning and sanitation of the following: a) Pasteurizer and related equipment b) Separator, clarifiers c) Cream storage tank d) Centrifuge washing equipment e) Fines recovery system f) C.I.P. system g) Other duties as directed Page 22

23 SHIPPER AND RECEIVER Responsible under the direction of the Plant Supervisor for the shipping and receiving of all goods coming into or going out of the plant, in addition to any and all work activities as required operation. GENERAL PLANT LABOUR Any and all work activities as required by Plant Supervisor. ENGINEERS Responsible under the directiejn of the Plant Supervisor or Engineer in Charge for the following: a) Boiler operation and maintenance b) Plant equipment maintenance c) Maintenance and clean-up of truck bay d) Assistance in loading of trucks (not if over 30 min.) e) Other duties as required. ARTICLE NO GENERAL 31 :01 There shall be two (2) fifteen minute paid rest periods per shift (3 in case of a 10 or 12 hour shift) one of which will be in the first part of the shift. One rest period will be provided if an employee works a half shift. There shall be a minimum of one-half (1/2) hour unpaid lunch break. 31 :02 No one in a management position will perform the duties of the bargaining unit unless it is a danger to life, limb, or property, or failure of the Union membership to staff a position. 31 :03 Discipline: Except for just cause, all employees shall receive a minimum of three letters of discipline, which may coincide with a one day suspension on each occasion, before the employee is terminated. If an employee works for one year without receiving any disciplinary action, his record shall be considered clear. All letters are to be forwarded to the Union. 31 :04 No Work Stoppage: The Company agrees it will not cause or direct any lockout of its employees and the Union agrees that there will be no strikes or other collective action which will stop or interfere with production. 31 :05 No employee will be required to be on mandatory stand-by without his full salary compensation to a maximum of eight (8) hours. Page 23

24 ARTICLE NO PART-TIME EMPLOYEES 32:01 Definition - Is an employee who is scheduled to work, less than twenty (20) hours per week. If a part-time employee works over twenty (20) hours in a week, he shall be paid the general plant (start) rate for the entire week. 32:02 The following conditions apply: a) Shall not be employed or scheduled to the extent that their work results in the displacement, or prevents the hiring or recall of full-time employees. b) Shall as a condition of employment pay union fees in accordance with Article 3:03. c) Shall not be guaranteed a minimum number of hours of work. d) Shall receive wages in accordance with the schedule. e) Shall carry no seniority but shall be given first opportunity to qualify as a regular employee. If hired as a regular employee, the seniority date will be the date in which becoming a full-time employee. f) Shall receive statutory holiday pay if working twenty-eight (28) hours the week prior to the holiday and one day after the holiday. g) Shall receive vacation pay pro-rated in accordance with the Alberta law. h) Shall not be entitled to other company benefits. ARTICLE NO RETROACTIVITY 33:01 All terms of the Collective Agreement become effective on the date of ratification, except where otherwise indicated by the memorandum of agreement. ARTICLE NO TERM OF AGREEMENT 34:01 Except as otherwise specified herein, this agreement shall be in full force and effect as of the date of ratification and continuing in effect until May 31, :02 Either party to this Agreement may, not less than sixty (60) days and not more than one hundred and twenty (120) days immediately prior to the expiry date of the Agreement, request the other party to the Agreement to commence collective bargaining. Such notice shall be given by registered mail. Page 24

25 34:03 If notices has been given by either party, this Agreement shall remain in full force and effect during any period of negotiations, even though such negotiations may extend beyond the said expiry date, until procedures in the Labour Relations Act have been exhausted. SIGNED AT Edmonton, Alberta, this 3rd ;)007,.zmJ6. Signed on Behalf of: SAPUTO FOODS LIMITED ~a i.al. Signed on Behalf of: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 Edmonton, Alberta Page 25

26 LETTER OF UNDERSTANDING RE: 12 HOUR SHIFTS The Company will implement a "12 hour shift" scheduled for boiler engineers, on a 3 month trial basis. Under this arrangement Employees will average 42 hours per week at straight time over a specified work cycle. Employees will be paid 8 hours pay for each named (recognized) holiday. All hours worked on a holiday will be paid at time and one-half. Should this shift not prove to be effective from a Company perspective, necessary adjustments in scheduling will be made. The intent is that the Company will not implementing this schedule. incur any additional costs as a result of rt:!l 3 -r SIGNED AT Edmonton, Alberta, this -=- day of v 1.Jlllll ry, :1007 Signed on Behalf of: Signed on Behalf of: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 ponding Secretary Page 26

27 LETTER OF UNDERSTANDING RE: PENSION AND GROUP BENEFITS The Company agrees to update information booklets regarding the retirement and group benefits plan. SIGNED AT Edmonton, Alberta, this s,5 r c;l day of JaIU..A. flflj :2oo~,2000. Signed on Behalf of: Signed on Behalf of: SAPUTO FOODS LIMITED INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 Page 27

28 LETTER OF UNDERSTANDING RE: ALTERNATIVE WORK ARRANGEMENTS 1. Pursuant to Article 8, the parties acknowledge that 'alternate work arrangements' may be necessary in order to ensure the efficient scheduling and operation of particular departments and satisfy customer requirements. 2. In support of this understanding, alternate work arrangements other than those designated in Clause 8:01 (e.g. 12 hours per day, 35 to 44 hours per week etc.) for a particular department, work group or individual may be utilized. 3. It is understood that under alternate work arrangements, overtime would only be paid if the hours worked exceed the daily schedule of eight (8), ten (10) or twelve (12) hours per day or the total hours worked exceed the scheduled hours in a specific period or the total hours worked exceed the scheduled hours in a specific period (e.g., 2 week cycle unless mutually agreed to a different cycle). 4. It is anticipated two consecutive days off per week will be the normal practice. Where this is not possible, the Union will be notified of the reason. Signed this 3 rd da&1 vf<:io.m.lglfll; rnbehalf of: Signed on Behalf of: SAPUTO FOODS LIMITED Signed on Behalf of: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 Page 28

29 LETTER OF UNDERSTANDING RE: HOURS OF WORK As per the Letter of Understanding, Alternative Work Arrangements, the Employer and the Union agree that: 1) Further to Article 8:02 - the regular hours of work will be a minimum seventy (70) hour, to maximum eighty eight (88) hour work cycle per two (2) week pay period. These hours would be at the straight time rate of pay. 2) Scheduling of Hours/Workdays - Employees will be required to work on weekends as part of their scheduled shifts. A reasonable work rotation will be established based on operational needs. Efforts will be made to provide two (2) consecutive days off per week. Where this is not possible the Union will be notified. 3) Posted schedules can be changed to meet operational demands without the requirement to pay the overtime due to clause 8:01. Both parties agree that this letter does not replace the existing Letter of Understanding, Alternative Work Arrangements. This Letter of Understanding becomes effective on the date of signing. Signed this,3'ol d~ 0+ :i.""alli, ~g~ehall 01: Signed on Behalf of: Signed on Behalf of: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 Page 29

30 LETTER OF UNDERSTANDING Article No Health and Welfare, and Pension The Company and the Union agree to meet, evaluate costs and discuss a Defined Contribution Pension Plan and/or other Pension Plan options for all new employees hired, when the amendments to the Act (Section 29 of the Employee Pension Plans Act) come into force by regulation.? dd o1 Signed this.j r J dqj( o~ :JllfJ..tittY J, on behalf of: Signed on Behalf of: Signed on Behalf of: SAPUTO FOODS LIMITED INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION NO. 955 Page 30