Collective Agreement

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1 Collective Agreement Between: Zellers Inc. (Store No. 264 Brentwood) (hereinafter referred to as the Company ) And: United Food and Commercial Workers International Union, Local 1518 (hereinafter referred to as the Union ) Store No. 264 Brentwood Agreement Ratified by Membership Vote March 10, 2009 Duration of Agreement: April 1, 2008 March 31, 2011

2 CONTENTS ARTICLE 1 PURPOSE... 1 ARTICLE 2 SCOPE AND RECOGNITION... 1 ARTICLE 3 INTERPRETATION AND DEFINITION (a) Associate... 1 Full-time Associates... 1 (c) Part-Time Associates... 2 ARTICLE 4 MANAGEMENT RIGHTS... 2 ARTICLE 5 UNION SECURITY AND DUES... 3 ARTICLE 6 UNION REPRESENTATION Right of Union Representation During Meetings... 5 ARTICLE 7 SPECIFIC PENALTIES... 5 ARTICLE 8 RELATIONSHIP... 5 ARTICLE 9 NO STRIKES AND LOCKOUTS... 6 ARTICLE 10 HOURS OF WORK Notice of Absence... 7 ARTICLE 11 PROBATION PERIOD AND TEMPORARY ASSOCIATES Temporary Associates... 8 ARTICLE 12 SENIORITY Part-time/Full-time Transfer ARTICLE 13 LAYOFF AND RECALL ARTICLE 14 PROMOTIONS ARTICLE 15 GRIEVANCE PROCEDURE Step I Step II Step III Policy Grievance Arbitration ARTICLE 16 LEAVES OF ABSENCE Funeral Leave Pregnancy and Parental Leave Benefits Coverage During Personal Leave of Absence Jury Duty Union Leave ARTICLE 17 HEALTH AND SAFETY COMMITTEE ARTICLE 18 VACATIONS Vacation Scheduling... 17

3 ARTICLE 19 STATUTORY HOLIDAYS Conditions of Eligibility Entitlement ARTICLE 20 BENEFITS PLANS ARTICLE 21 GENERAL Joint Labour Management Committee Meetings ARTICLE 22 WAGES Determination of Compensation General 22 Determination of Wage Rate ARTICLE 23 - DURATION APPENDIX A ZELLERS ASSOCIATE RANGES ZELLERS BRENTWOOD # LETTER OF UNDERSTANDING NO. 1 - GRANDFATHERING LETTER OF UNDERSTANDING NO. 2 - PHARMACY TECHNICIANS LETTER OF UNDERSTANDING NO. 3 - SCHEDULING WORKING GROUP Purpose Resolution Procedures for Scheduling Concerns Resolution Steps Membership of Working Group Issues to be Addressed Meetings Discussion/Resolution/Follow-up LETTER OF UNDERSTANDING NO. 4 - RECORD REMOVAL LETTER OF UNDERSTANDING NO. 5 - NO FREE TIME LETTER OF UNDERSTANDING NO. 6 - EDUCATIONAL LEAVE LETTER OF UNDERSTANDING NO. 7 - HARASSMENT PROTECTION POLICY... 36

4 Article 1 Purpose 1.01 The general purpose of this agreement is to establish and maintain collective bargaining relations between the Company and the Union and the Associates covered by this agreement; to provide a mechanism for the timely disposition of grievances. Article 2 Scope and Recognition 2.01 The Company recognizes the United Food and Commercial Workers International Union, Local 1518 as the bargaining agent of all Associates employed at the Zellers Store No. 264, # Lougheed Highway, Burnaby, BC, except loss prevention officers, students employed in a cooperative training program, supervisors, and persons above the rank of supervisor and those excluded by the Labour Relations Code It is understood that persons excluded from the bargaining unit may perform any work assigned to them, whether performed by bargaining unit members or otherwise, provided supervisory personnel do not perform bargaining unit work to such an extent that they spend the majority of their time during the week doing such work The Company agrees that co-operative work program students will not perform bargaining unit work unless a bargaining unit Associate is scheduled and working in the same scheduling area during such time. All students employed in a co-operative training program will be given a distinctive ribbon to distinguish them from regular Associates. Article 3 Interpretation and Definition 3.01 (a) Associate The term Associate shall mean an Associate covered by the provisions of this collective agreement as recognized in Article 2, unless otherwise indicated by the context. Full-time Associates The term regular full-time Associate or full-time Associate shall mean any Associate hired for an indefinite period and who is regularly scheduled to work the normal full-time hours referred to in Article 10.01(a) of the collective agreement. C Zellers 264 (1/14/2010) /wr USW Local 2009

5 (c) Part-Time Associates The term part-time Associate shall mean an Associate hired for an indefinite period and who regularly works 27 hours or less per week In this agreement unless otherwise indicated by the context, the feminine gender includes the masculine gender and vice versa The Christmas Period shall extend from October 1 st to January 5 th The provisions of this Agreement apply to part-time Associates where specifically indicated or otherwise indicated by the context. Those portions of the Agreement that reference full-time Associates do not apply to part-time Associates unless specifically stated. Article 4 Management Rights 4.01 The Union recognizes that the management of the Company and the direction of the workforce is fixed in the Company and without restricting the generality of the foregoing, the Union acknowledges that it is the function of the Company to: (a) (c) (d) (e) maintain order, discipline and efficiency; hire; assign; direct; promote; demote; classify; transfer; layoff; recall; suspend; discharge or otherwise discipline non-probationary Associates for just cause; determine the nature and kind of business conducted by the Company, the products to be carried, the kind and locations of equipment, merchandise, goods, fixtures, and the type of customer service to be used; the control of material and goods; the methods and techniques of work; the schedules of work; the number of personnel to be employed; make studies of and institute changes to jobs and job assignments; discontinue, reorganize, limit, combine or substitute any operation or part thereof; and determine all other functions and prerogatives heretofore invested in and exercised by the Company which shall remain with the Company; make and enforce and alter from time to time reasonable rules and reasonable regulations to be observed by Associates; Discipline or discharge a probationary Associate for any reason satisfactory to the Company provided such discharge is done in good faith and in a non-discriminatory fashion. C Zellers 264 (1/14/2010) - 2 -

6 Article 5 Union Security and Dues 5.01 (a) All bargaining unit Associates shall become and remain members in good standing of the Union as a condition of employment. The Company shall remit to the Union, the United Food and commercial Workers International Union Membership Application Form which the Company shall have signed by all new Associates at time of hiring. The Company shall forward such forms with the next dues remittance The Company agrees to deduct from the wages of each Associate such initiation and union dues as authorized by regular and proper vote of the membership of the Union. Such deductions shall be made bi-weekly from the wages owing each Associate in the bargaining unit. The Union agrees to not collect any initiation fees for any temporary Associate unless and until such Associate attains regular status The Associate shall, within thirty (30) days after commencement of employment, provide the Company with a signed authorization for such deductions. Such deductions for all Associates shall commence following the receipt of the authorization Monies deducted during any month shall be forwarded by the Company to the Secretary-Treasurer of the Union not later than the 15 th day of the following month. The Company will, at the time of making such remittance to the Union, include a list in alphabetical order of the names of the Associates from whose pay deductions were made, Associate number, and the amount deducted (or the reason why not) The Union shall indemnify and save harmless the Company, its agents and or employees acting on behalf of the Company, from any and all claims, demands, actions or causes of action arising out of or in any way connected with the collection and remittance of such dues The Union shall provide the Company with thirty (30) days written notice of any increase or decrease in the amount of dues to be deducted from the bargaining unit Associates The Company will include on each Associate s T-4 slip the amount of Union dues deducted. Article 6 Union Representation 6.01 An Associate who is being notified of his discharge, suspension or written disciplinary warning will be informed of his right to have the presence of a steward or witness of the Associate s choice from the Bargaining Unit prior to C Zellers 264 (1/14/2010) - 3 -

7 or as soon as reasonably possible after the beginning of any meeting where the Associate is being notified of such disciplinary action It is understood that the failure to comply with the foregoing procedure shall not render the discipline a nullity but the parties may review the circumstances of the breach (a) An authorized representative of the Union may enter the store in order to deal with the interpretation, application, administration or alleged violation of the agreement in accordance with the provisions of this Article 6.03, provided he contacts the Store Manager or his substitute in order to arrange a mutually agreeable time. In the administration of this clause, the Employer agrees it shall not act in an arbitrary fashion and shall make every reasonable effort to reach mutual agreement. (c) Access to secure areas where Associates work shall be carried out in a responsible and safe manner. Should it be necessary for the Business Representative to meet with the Union Stewards or other Associates, the Business Representative shall obtain the authorization of the Store Manager or his substitute. It is agreed that such meetings shall be conducted in such a way as to minimize disruption to normal operations and at no time shall an Associate be interrupted while providing customer service. Where it is reasonable to do so, such meetings shall be conducted during an Associate s break time and in no event shall the staff lounge be used for such purposes The Company acknowledges the right of the Union to appoint or otherwise select not more than four (4) stewards from amongst Associates in the bargaining unit who have completed their probationary period, for the purpose of assisting Associates with the presentation of grievances in accordance with the provisions of this Agreement The Union acknowledges that the stewards have their regular duties to perform on behalf of the Company and may not leave their regular duties without the permission of their immediate supervisor. Each steward shall with the consent of their supervisor be permitted to leave their regular duties for a reasonable length of time without loss of pay to function as a steward as provided in this collective agreement. Such consent will not be unreasonably withheld. A steward s discussions with Associates shall be conducted in such a way as to minimize disruption to normal operations and at no time shall an Associate be interrupted while providing customer service. Where reasonable to do so such discussions shall be conducted during an Associate s break time. If in the course of such time away from her regular duties the steward visits another department she shall, upon entering that department advise the supervisor of that department or her designate of the nature of her business. C Zellers 264 (1/14/2010) - 4 -

8 6.06 The Company shall not be required to recognize stewards until such time as it has been notified in writing of their appointment by the Union Right of Union Representation During Meetings An Associate who is being notified of her discharge, suspension, written warning or in the case of a performance improvement interview conducted with more than one executive, the Associate will be informed of her right to have the presence of a steward or witness of the Associate s choice from the Bargaining Unit prior to or as soon as reasonably possible after the beginning of any meeting where the Associate is being notified of such disciplinary action. This provision shall also apply when an interview that is of a disciplinary nature is held with an Associate that becomes part of her record regarding her work or conduct. In the event that a steward or witness of the Associate s choice from the Bargaining Unit is not present at such time, the Company shall notify the Union of the discharge, suspension or written warning within seventy-two (72) hours after such notice has been given. It is understood that the failure to comply with the foregoing procedure shall not render the discipline a nullity, but the parties may review the circumstances of the breach Any Associate who so desires, shall have the right to review his personnel record in the presence of a member of management. Such review is to take place at such time and place within the Store as may be designated by management. At the Associate s request a Union Steward may accompany the Associate. Article 7 Specific Penalties 7.01 Where it is necessary to search an Associate s locker or personal belongings, the said search will be conducted with the Associate present and the Associate may request the presence of a Steward or witness of their choice from the bargaining unit. Article 8 Relationship 8.01 The Company and the Union each agree that there will be no intimidation, discrimination, interference, restraint or coercion exercised or practised by either of them or their representatives or members because of an Associate s membership in the Union or because of his activity in the Union The Union further agrees that there shall be no Union activities during working hours except as authorized by the Collective Agreement. C Zellers 264 (1/14/2010) - 5 -

9 Article 9 No Strikes and Lockouts 9.01 The Union agrees that during the life of this collective agreement there will be no strikes, picketing, slowdown, or stoppage of work, either complete or partial, and the Company agrees that there will be no lockout. Article 10 Hours of Work (a) The normal work week for regular full-time Associates shall consist of twenty-eight to forty (28-40) hours, per week, worked in, up to and including five (5) days. It is understood that a full-time Associate shall not be scheduled for more than one (1) shift of less than six (6) hours in the normal work week. It is understood and agreed that the provisions of this Article are intended only to provide a basis of calculating time worked and shall not be considered a guarantee as to the hours of work per day or per week or the days of work per week. The normal work week for part-time Associate shall consist of up to twenty-seven (27) hours per week worked in, up to and including five (5) days per week, except that the hours worked in a week may be exceeded for up to thirteen (13) consecutive weeks or for such periods where the Associate is relieving for sickness, accident, vacation, or leaves of absence including pregnancy and parental or adoption leave, during a store renovation or during the Christmas period. Part-Time Associates must be available for a minimum of two (2) shifts each week (a) Authorized hours worked in excess of eight (8) hours per day or forty (40) hours per week shall be compensated at time and one-half the Associate s regular straight time hourly rate. (c) There shall be no duplication or pyramiding of hours worked for the purpose of computing overtime. The parties to this agreement recognize that the needs of the business may require the performance of overtime work from time to time and Associates agree to perform such work. The Company will attempt to advise Associates of required overtime as far in advance as is practicable and Associates shall be paid only for those hours actually worked and assigned as per his/her schedule An Associate shall swipe in with his CHRIS identification card before he commences work and swipe out upon leaving at the end of the day and at meal times (a) The Company will post work week schedules by no later than noon of the Wednesday of each week for hours to be worked by Associates during the following week or for such longer period as the Company considers C Zellers 264 (1/14/2010) - 6 -

10 appropriate. Such schedule is for the information of Associates and may be subject to change. Associates shall be notified of changes. Such changes are to be handwritten in ink. Changes to an Associate s shift cannot be made unless twenty-four (24) hours notice is provided, except in the case of emergency or by mutual agreement. Consistent with the efficiency of operations, break periods are as follows: Length of Shift Paid Rest Period Unpaid Rest Period less than 4 hours none none 4 to 4 ¾ hours 1-15 min. none 5 to 6 ¼ hours* 1-15 min min. 6 ½ to 7 ¾ hours 1-15 min min. 8 hours 1-15 min min. 8 ¼ hours to 9 hours 2-15 min min. *An Associate working a 5 hour shift or more, but less than 6 ½ hours, will combine the 15 minute paid rest period with the 15 minute unpaid rest period. (c) (d) (e) The Business Representatives of the Union or the steward shall have the right to receive necessary information including final hours to pay reports and exception reports, to substantiate discrepancies on an individual case basis. Shop Stewards and/or Union Representative shall ask for this information when it is required. Associates shall not be required to work a split shift. An Associate scheduled or called in to work shall be provided with a guarantee of four (4) hours of work or pay in lieu thereof unless the work is suspended for a reason completely beyond the employer s control including unsuitable weather conditions Notice of Absence (a) Associates are required to attend work regularly. When unable to attend, the Associate must contact his supervisor as far in advance as possible of his scheduled start time, giving the reason he is unable to attend work, date of his expected return, and the details as to where he can be contacted in his absence. If the Associate cannot contact C Zellers 264 (1/14/2010) - 7 -

11 his supervisor he must contact the Store Manager, Service Manager or Assistant Store Manager. In the event that none of the above individuals are available, the Associate shall, at the first opportunity, contact the Store Manager, Service Manager or Assistant Store Manager. (c) An Associate may be required by the Company to substantiate the reasons for any absence, provide a professional prognosis of his projected pattern of absences, his expected date of return, and his limitations, if any. Should the Company require medical documentation as outlined above, the Company shall pay for such documentation Article 11 Probation Period and Temporary Associates (a) An Associate will have no seniority and shall be considered on probation until he has been employed ninety (90) calendar days. During an Associate s probationary period, the Company may discipline or discharge a probationary Associate in its sole discretion for any reason satisfactory to the Company provided that the Company acts in good faith Temporary Associates (a) Notwithstanding the above, it is recognized and agreed that the Company may, during the Christmas Period, and each year, hire new Associates on a limited term basis and the release of such an Associate within the same period shall not give rise to a difference between the parties or be the subject of a grievance for any reason, whether or not the Associate has worked sufficient time to have completed the normal probationary period. If the Associate is retained after that period in any year, he or she shall be credited with all time worked toward the completion of probation and, once that is completed, towards seniority as specified in this agreement. Similarly, in the event that the Company does not have adequate staffing to complete a store renovation they may hire individuals on a temporary basis to perform such work. It is understood that where the Company does not have adequate staffing the days of and the days prior to the annual inventory, for inventory purposes, they may hire individuals on a temporary basis to perform such work and such persons will not be considered part of the bargaining unit. Article 12 Seniority (a) Seniority of an Associate shall be defined as length of continuous employment since the last date of hire with the Company in the Bargaining Unit. Seniority shall only be credited upon completion of the probationary C Zellers 264 (1/14/2010) - 8 -

12 period. Seniority rights will apply only to the extent expressly provided in this agreement. Separate seniority lists shall be kept for regular full-time Associates and part-time Associates. The Employer will provide updated seniority report to the Union every two (2) months or upon request. (c) Any non-bargaining unit Associate who enters the bargaining unit shall accumulate seniority from the date of entry. Should a bargaining unit Associate leave the bargaining unit and remain employed in the Company in any capacity and subsequently return to the bargaining unit, such Associate will return with seniority based on her actual time in the bargaining unit. In the event two (2) or more employees are hired on the same date their placement on the seniority list, following the probationary period, shall be determined by the luck of a draw conducted by the parties The seniority of an Associate shall be lost and her employment terminated for any of the following reasons: (a) (c) he quits his employment; he retires; he is discharged and such discharge is not reversed through the grievance or arbitration procedure; (d) he does not perform work for the Company for a period of twelve (12) months in the case of layoff or for twenty-four (24) months for any other reason unless that reason is in violation of the British Columbia Human Rights Code or any other applicable legislation. The Company agrees to indemnify the Union with respect to any complaint or grievance if the Union is found in violation of the Code or applicable legislation as a result of this clause. (e) he is absent from work without permission for more than two (2) consecutive working days, unless an explanation satisfactory to the Company is given by the Associate; (f) (g) he overstays a vacation or leave of absence without securing the extension of such leave of absence or vacation from the Store Manager unless an explanation satisfactory to the Company is given by the Associate; he is recalled to work, but fails to return within ten (10) calendar days of the mailing of notification to return unless the failure to return were for reasons completely beyond the control of the Associate. Such mailing C Zellers 264 (1/14/2010) - 9 -

13 shall be by registered mail to the last address of the Associate that the Company has in its files for that Associate; (h) (i) (j) if an Associate utilizes a leave of absence for purposes other than those for which it was granted; he fails to return to work immediately after the Company has been notified by a doctor or Workers Compensation Board that the Associate is able to return to his job and all appeal procedures related to the Associate s claim have been exhausted. In the case of a part-time Associate where the Associate has not been scheduled to work for more than three (3) months or where the Associate has not accepted work for more than one (1) month Part-time/Full-time Transfer (a) (c) When a full-time Associate is moved to a part-time position, she shall be credited with part-time seniority equivalent to her full-time seniority or part-time seniority, whichever is greater. When a part-time Associate is moved to a full-time position, she shall be credited with full-time seniority equivalent to one-half (½) of her parttime seniority. An Associate who requests a reduction in status as stipulated in Article 12.03(a) shall not be entitled to bid for a position in the same classification until 24 months have elapsed. This restriction shall not apply to an Associate who has reverted in status as an alternative at time of layoff. Article 13 Layoff and Recall When the Company decides to reduce its full-time work force in a scheduling area it shall reduce the most junior full-time Associate in the scheduling area, provided the remaining Associates are qualified to perform the remaining work The Associate selected will displace the most junior full-time Associate in his classification provided he has more seniority, and is qualified to perform the work If not able to displace an Associate in his classification, the Associate selected will displace the most junior full-time Associate in the bargaining unit provided he has more seniority and is qualified to perform the work If the Associate cannot displace a full-time Associate in the bargaining unit, the Associate selected will displace the most junior part-time Associate in the C Zellers 264 (1/14/2010)

14 scheduling area provided he has more seniority and is qualified to perform the work If the Associate cannot displace the most junior part-time Associate in his scheduling area, he shall displace the junior part-time Associate in the bargaining unit provided he has more seniority and is qualified to perform the work If the full-time Associate cannot displace a part-time Associate, or does not wish to accept the assignment to part-time status, or no such assignment is available, he will be laid off Persons on layoff who retain recall rights shall be recalled in reverse order of layoff provided they are qualified to perform the available work. Associates reduced to part-time status pursuant to the above procedures will be given the opportunity, for a period of twelve (12) months, to return to full-time status, provided they have the necessary seniority and qualifications, prior to new fulltime Associates being hired The Company shall notify Associates who are to be laid off one week prior to the effective date of layoff, or award pay in lieu thereof, unless a greater period of notice is required by legislation, in which case such greater period of notice or pay in lieu thereof shall be given. Article 14 Promotions (a) Where a job vacancy occurs or a new job is created, which the Company intends to fill, it shall post notice of the vacancy in the store for a period of seven (7) working days. Associates bidding on the vacancy must make application to the store manager no later than the seventh working day. The Company need not consider any application who, within the prior three (3) month period, successfully bid on a job vacancy. (c) (d) Applicants shall be considered for the position on the basis of their immediate qualifications and seniority. If the Company is satisfied that the qualifications of applicants to perform the job, without training but subject to a one (1) week familiarization period, are relatively equal, then the senior applicant shall be promoted. The successful applicant shall be allowed, for a period of fifteen (15) shifts worked, to return to her former position without loss of seniority or wage of position previously held, should the Associate find herself unable to perform the duties of the new job classification. If the Company is satisfied that nobody who has applied has the qualifications to satisfactorily perform the requirements of the job, without training but subject to a one (1) week familiarization period, the C Zellers 264 (1/14/2010)

15 Company may select any Associate in the bargaining unit for training or appoint an Associate from outside the bargaining unit or outside of the Store or hire a new Associate. (e) (f) This article will not apply where the Company does not expect a vacancy to exceed ninety (90) calendar days or where the vacancy is caused by illness, accident, vacation or leaves of absence, including pregnancy and parental leave. For the purposes of the Collective Agreement, a promotion shall be defined as a movement from one classification to another classification within the bargaining unit where the maximum rate of pay applicable to the new classification exceeds or is the same as the maximum rate of pay applicable to the Associate s present classification, or movement which would create an upward change in the Associate s status as defined in Article 3.01 and (c) For the purposes of the Collective Agreement, qualification and qualified shall be defined as an Associate s skill, ability, education, productivity, experience, provided all the relevant qualifications are applied in an even, relevant and nondiscriminatory fashion Nothing in Articles 12 - Seniority, 13 - Layoffs, and 14 - Promotion limits the Company s right to assign or transfer Associate within the same classification to different job assignments within that classification No Associate shall be transferred to a position outside the Bargaining Unit without her consent A full-time Associate who desires to step down into a part-time position may apply to any part-time job posting as an additional mechanism to their request for reclassification. Article 15 Grievance Procedure For the purposes of this collective agreement, a grievance is defined as a difference arising between the parties relating to the interpretation, application, administration, or alleged violation of the agreement, including any question as to whether a matter is arbitrable It is the mutual desire of the parties that complaints of Associates must be adjusted as quickly as possible It is understood that an Associate has no grievance until he has first given his immediate supervisor the opportunity of adjusting his complaint orally or in writing. C Zellers 264 (1/14/2010)

16 15.04 If an Associate has an unsettled complaint regarding the interpretation, application, administration, or alleged violation of this agreement then: Step I If any Associate has a complaint he shall discuss it with his immediate supervisor within five (5) days after the circumstances giving rise to the complaint has occurred or ought to have reasonably come to the attention of the Associate. The Associate may request the assistance of his Steward to present his complaint. The Supervisor shall give his response to the complaint within five (5) days. and, failing settlement it then may be taken up as a grievance within five (5) days after being advised of the Supervisor s decision in the following manner and sequence. Step II Failing settlement within five (5) calendar days from the final date for the supervisors reply, the grievance may be submitted in writing to the Service Manager. A meeting will be held between the Company and Associate with the Union steward. Such meeting shall be held within seven (7) calendar days of submission of the grievance at Step II unless extended by agreement of the parties. The decision of the Company shall be delivered in writing within ten (10) calendar days following the date of such meeting. Step III Failing settlement, within five (5) calendar days from the final date for the Service Manager s reply, the grievance may be submitted in writing to the Store Manager or alternate. A meeting will be held between the Company and the Associate with the Union steward and Business Representative. Such meeting shall be held within seven (7) calendar days of submission of the grievance at Step III unless extended by agreement of the parties. The decision of the Company shall be delivered in writing to the Business Representative within ten (10) calendar days following the date of such meeting. Policy Grievance Any differences arising directly between the Union and the Company, relating to the interpretation, application or alleged violation of the agreement may be presented by either party as a Policy Grievance within fourteen (14) calendar days after the date when the subject matter of the grievance first arose. Such grievance shall be heard commencing at Step No. III. It is understood, however, that the provision of this paragraph shall not be used with respect to a grievance directly affecting an Associate and that the regular grievance procedure shall not be bypassed. C Zellers 264 (1/14/2010)

17 Arbitration (a) Failing settlement under the foregoing procedure, any grievance involving the interpretation, application, administration or alleged violation of this agreement, including any question as to whether a matter is arbitrable, may be submitted to arbitration. If no written request for arbitration is received, within thirty (30) calendar days after the decision under Step III is given, the grievance shall be deemed to have been abandoned. No adjustment effected on the grievance and arbitration procedure shall be retroactive beyond five (5) days prior to the date that the grievance was formally discussed or presented to the Company except in the case of wages or cash benefits issues, where the adjustment shall not be retroactive prior to the first occurrence of the issue but in any case not before forty-five (45) days prior to the date that the grievance was formally discussed or presented to the Company Where either party requests that a matter be submitted to arbitration, it shall make such request in writing addressed to the other party to this agreement and at the same time appoint a nominee. Within seven calendar days thereafter the other party shall appoint a nominee; provided, however that if such party fails to appoint a nominee as herein required, the Arbitration Bureau of British Columbia shall have power to make such appointment upon application thereto by the party invoking the arbitration procedure. The chairperson of the board shall be chosen by the parties nominees within ten days of the appointment of the second nominee No person may be appointed as a nominee who has been involved in an attempt to negotiate or settle the grievance The parties may agree to a Single Arbitrator by mutual agreement who shall have all the same rights as a Board of Arbitration Time limits in the grievance and arbitration procedure are mandatory and failure to submit the grievance or process it in a timely manner will result in the grievance being deemed abandoned. If no written answer has been given within the time limit specified, the grievance may be submitted to the next step. Time limits may be extended by written agreement between the Company and the Union No matter may be submitted to arbitration which has not been carried through all required steps of the Grievance Procedure The arbitration board shall not be authorized to make any decision inconsistent with the provisions of this agreement, nor alter, modify, add to or amend any part of this agreement. C Zellers 264 (1/14/2010)

18 15.13 The proceedings of the arbitration board will be expedited by the parties hereto and the decision of the majority and, where there is no majority the decision of the chairperson, will be final and binding upon the parties hereto and the Associate or Associates concerned Each of the parties shall bear the expenses of their respective nominees and will share equally the expenses of the chairperson of the arbitration board. Article 16 Leaves of Absence Funeral Leave (a) In the event of the death in the immediate family of an Associate, the Associate will be granted up to three (3) days off. Such leave shall be without loss of pay from regular earnings. The term immediate family shall mean spouse, parent, child, brother, sister, mother-in-law, father-inlaw, son-in-law, daughter-in-law, step parents, step siblings, step child, common law partner and same sex partner. (c) In the event of the death of the Associate s grandmother, brother-in-law, sister-in-law, aunt, uncle, grandfather or grandchild, leave up to one (1) day shall be granted without loss of regular earnings for attendance at the funeral. Time off due to the death of a member of an Associate s family must be taken at the time of the bereavement Pregnancy and Parental Leave Pregnancy, parental and family responsibility leave shall be granted in accordance with the provisions of the Employment Standards Act of B.C. as amended Benefits Coverage During Personal Leave of Absence During an approved leave of absence the Company shall continue to make payments to all Health and Welfare Plans provided that the Associate contributes his share, if any. Seniority shall continue to accrue on any approved leave of absence Jury Duty Where an Associate is required to serve on a Jury or subpoenaed as a Crown Witness, he shall be relieved of his duties for such time as it may require and he shall be paid the difference between his fee as a Juror or Crown Witness and his earnings for time lost providing that the Associate furnishes the Company with a certificate of service signed by the clerk of the Court showing the amount of any C Zellers 264 (1/14/2010)

19 fee received. It is the Associate s responsibility to come to work at any time that he is not actually required for Jury duty or to be present in court. If any Associate s service as a Juror or Crown Witness is not required for the entire day, he is expected to return to work for the remainder of the day, however, at no time shall the combined Jury or Crown Witness duty and employment duties exceed seven and a half (7.5) hours per day Union Leave (a) (c) Taking into account the needs and efficiencies of the business, the Company may grant a leave of absence without pay and without loss of seniority to Union Stewards to attend Union conventions or Union educational sessions. Not more than three (3) Stewards shall be off at any one time and all leaves for all Associates shall not exceed fifteen (15) working days per year. Such leave shall not be unreasonably denied. The Company will pay the lost wages and benefits of stewards who are on leave of absence, at the written request of the Union. The Union will promptly reimburse the Company the full amount of the lost wages paid to the Steward. Union leave for the purposes of collective bargaining shall not be included in the 15 working days referred to in Article 16.05(a) The provisions of Article 16 apply to full-time Associates. Articles and 16.05, also apply to part-time Associates. Article 17 Health and Safety Committee It is the policy of the Company to make reasonable provision for safe and healthful working conditions for all Associates and the Associates agree to work in a safe manner. The Union agrees to support the maintenance of the proper observation of all health and safety rules The Employer agrees to maintain a Health and Safety Committee in the store. The Committee shall function in accordance with the Workers Compensation Board Health and Safety Regulations Up to 3 members of the bargaining unit shall be elected by bargaining unit members in the Store or shall be appointed by the Union to the Health and Safety Committee. Article 18 Vacations The vacation year is January 1 to December 31. Service, for purposes of vacation entitlement, is defined as regular service in a full-time or part-time capacity. C Zellers 264 (1/14/2010)

20 18.02 During the annual vacation period of January 1 st to December 31 st, Associates with less than one year of service receive vacation pay at the rate of 4% of earnings not including overtime pay, premium pay and retroactive pay. Thereafter, vacation entitlement and vacation pay will be calculated as of the employee s continuous service date as follows: Service since CSD Vacation Entitlement Vacation Pay 1 year or more 2 weeks* 4% 3 years or more 3 weeks 5.769% 5 years or more 3 weeks 6% 10 years or more 4 weeks** 7.692% 20 years or more 5 weeks ** 9.615% 25 th year only 6 weeks*** % * or as required by the Provincial legislation (whichever is greater) ** three (3) continuous week maximum *** four (4) continuous weeks maximum, subject to the approval of the District Manager The vacation pay percentages outlined in the table above are paid on base wages only. Vacation pay on overtime, premium payments and retroactive adjustments will be paid at: 4% from 0 4 years 6% thereafter There shall be the ability to carry over half of the vacation accrual hours from one vacation year to the next Vacation Scheduling (a) Associates shall indicate their vacation preference, if any, no later than October 31 for the vacation months of January to June 30 and no later than April 1 for the vacation months of July to November 1. Where an Associate requests a specific vacation period, C Zellers 264 (1/14/2010)

21 the Company shall confirm or deny, in writing, such request within two (2) weeks after the October 31st or April 1 st deadline. (c) Where, in scheduling vacations in accordance with the foregoing, conflicts arise as to choice of vacation times, consideration shall be given to respective length of service, and the efficiency of operations in the final determination of a vacation schedule. No vacation shall be scheduled between November 1st and January 5th and during the week of annual inventory. The granting of vacation during these two periods will only be done in rare cases based on compassionate grounds The provisions of 18.01, 18.02, and apply to full-time Associates. Part-time Associates shall receive their vacation accrual as per provincial requirements with each pay: 4% of their earning for parttime Associates with less than 5 years service and 6% for Associates who have completed 5 years of service. Article 19 Statutory Holidays Associates shall be entitled to the following holidays: Statutory Holidays New Years Day Good Friday Victoria Day Canada Day Labour Day B.C. Day (1 st Monday in August) Thanksgiving Remembrance Day Christmas Day Company Recognized Holidays Boxing Day Float Day* *Conditions of eligibility for the Float Day shall include the following: (a) Must be a full-time Associate with at least one year of service from the Associate s current date of hire; All Associates as at the date of ratification of this Collective Agreement shall continue to be eligible for Float Days; C Zellers 264 (1/14/2010)

22 (c) Associates hired following the date of ratification of this Collective Agreement will be entitled to Float Days once the Associate achieves fulltime status and has completed one year of service from their current date of hire Conditions of Eligibility (a) Must have been employed for thirty (30) days. Must have worked at least fifteen (15) of the last thirty (30) days before the holiday Entitlement (a) (c) (d) If the holiday falls on the Associate s regular working day, the Associate is entitled to a day off with pay equal to the Associate s normal hours of work on that day or if the Associate has no fixed schedule of work, pay will be the average daily earnings (excluding overtime) for the four (4) weeks preceding the holiday (exclusive of annual vacation). If the holiday falls on a non-working day for an Associate, the Associate is to receive an alternate day off with pay on a regular day within the next two (2) pay periods. An Associate required to work on a holiday is to be paid one and one-half (1½) times her regular wages for the first eleven (11) hours worked and double-time after eleven (11) hours plus the Associate is to be given another day off with pay on a regular working day within the next two (2) pay periods. A part-time Associate is to be paid an average of the total number of hours worked (exclusive of overtime) during the preceding thirty (30) days, divided by the number of days worked. (e) (i) Where a holiday falls during a full-time Associate s scheduled vacation period her vacation shall be extended by one (1) day and shall be indicated on the vacation request form. (ii) (iii) When a holiday falls during an absence unpaid by the Company, including layoff, the Associate will not receive holiday pay. Where a holiday falls while an Associate is on sick leave, she shall not receive holiday pay but continue to receive such pay to which she is entitled. C Zellers 264 (1/14/2010)

23 (f) (g) (h) On Company recognized holidays, unless provided otherwise by law, when the store remains open Associates will not be paid time and one half for hours worked in addition to their regular pay or straight time off. The Float Day calendar will run from January 1 to December 31 of each year. Eligible Associates are expected to take their Float Day each year. The Employer and the Union shall post Article 19 on their respective bulletin boards. However, there will be no carry over from year to year. If the Federal or Provincial government declares another statutory holiday it shall replace the Float Day mentioned above. Article 20 Benefits Plans It is agreed that the application of the Company s benefits relating to: Health & Dental care; Associate Discounts; Sickness and Disability; Pension Plan; Life Insurance; Long Service Awards; Canada Savings Bonds; Canada Savings Plan; and R.R.S.P.s, shall continue in respect to the Associates in conformity with their general application throughout the Company including any improvements or reductions. It is understood that the benefit plans are not part of the Collective Agreement and are not themselves subject to the grievance procedure or arbitration The Company will provide all details of benefit changes to the Union, as soon as possible and, in any case, coincide with their introduction. If existing benefits in are reduced the Company will discuss any such reduction with the Union in advance It is agreed that Associates shall be eligible to receive the Company s Annual Incentive Plan. The application of the Annual Incentive Plan shall conform with the general application throughout the Company including any improvements or reductions, as they apply from time to time. Article 21 General The Company will provide the space for a properly sized bulletin board, as mutually agreed, for the sole purpose of posting Union notices to its members. Other than the regular Union meeting notice, all other notices will be initialled by a Steward and must be given to the Store Manager for approval and signature before posting. The bulletin board shall be located to ensure it is visible to all bargaining unit Associates The Company agrees to provide uniforms in accordance with Company policy The Company safety shoe program will apply for designated positions. Associates that purchase the safety footwear from Hbc stores will be reimbursed upon presenting receipts for up to $50.00 per year or C Zellers 264 (1/14/2010)

24 $ every second year. If the Associate requires a special size not available in Hbc stores, then this will be addressed on an individual basis with store management Joint Labour Management Committee Meetings (a) Mission Statement The intent of the Labour Management meetings is to provide a vehicle for discussions, dialogue, problem solving and harmonious labour relations between the parties in a constructive manner recognizing that full discussion of store issues and earliest agreement are in the best interest of both parties. The parties will endeavour to meet once a month at a time most convenient to the parties and least disruptive to the operations. A copy of the minutes of each meeting shall be posted on the bulletin board. Safeguard (c) Labour Management meetings should not be used to delay the discussion of an issue or to circumvent the normal process of the collective agreement. Article 22 Wages (a) The wage scales applicable under this agreement are attached as Appendix A. The wage rate applicable to each Associate within the applicable wage scales shall be determined in accordance with this Article The Start Rate for new Associates shall be the start rate in the applicable Appendix After the completion of 6 months of work, an Associate shall move automatically to the 6 Month Rate in the applicable Appendix. Thereafter, that Associate s wage rate will be determined in accordance with the provisions of Article to Those Associates who have completed 6 months of employment as at the date of ratification of this agreement who remain employed as at that date shall have their wage rates adjusted in accordance with Article to The wage rate of an Associate which may be increased in accordance with Article shall be the wage rate of that Associate that was in effect immediately prior to the ratification of this agreement. C Zellers 264 (1/14/2010)

25 22.05 Associates (except those who are at the Start Rate ) shall be eligible for a wage increase each year in accordance with the process outlined in Article Determination of Compensation General (a) (c) Each eligible Associate s individual performance will be assessed and communicated to the Associate prior to the application of any wage increase (if applicable) to be scheduled to be effective no later than April 1 of each year. The employer s criteria to determine each Associate s performance will be in accordance with the Company s Performance Achievement Review process. An Associate will be assessed at one of the performance rating levels identified in the Company s Performance Achievement Review process. For the term of this agreement, the performance rating levels shall be as follows: i) Improvement Required ii) iii) iv) Developmental Solid Performance Exceeds Requirements v) Peak Performance (d) The wage rate of the Associate to be increased (if eligible for an increase) effective April 1, 2005 shall be the wage rate identified in Article The wage rate of the Associate to be increased in subsequent years (if eligible for an increase) shall be the wage rate the Associate held immediately before the effective date of the next applicable increase. Determination of Wage Rate (e) Each Associate s wage rate to commence on April 1 st each year shall be determined on an individual basis in accordance with the results of the performance assessment referred to in this Article (a) The increases to be applied effective April 1, 2008 (based on the Collective Agreement ending March 31, 2011) shall be: C Zellers 264 (1/14/2010)