RENT-A-CAR DIVISION UNITED FOOD & COMMERCIAL WORKERS CANADA LOCAL 175. Drivers, Pearson International Airport Ontario, Canada

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1 C O L L E C T I V E A G R E E M E N T B E T W E E N: HERTZ CANADA, LTD. RENT-A-CAR DIVISION A N D: UNITED FOOD & COMMERCIAL WORKERS CANADA LOCAL 175 REGARDING: Drivers, Pearson International Airport Ontario, Canada TERM OF AGREEMENT: August 24, 2015 through August 23, 2018

2 INDEX ARTICLE PAGE ARTICLE 1.00 BARGAINING AGENCY... 3 ARTICLE 2.00 UNION SECURITY... 3 ARTICLE 3.00 NO DISCRIMINATION, NO HARASSMENT 4 ARTICLE 4.00 BASIC WORK WEEK... 5 ARTICLE 5.00 REST PERIODS... 6 ARTICLE 6.00 WAGES.6 ARTICLE 7.00 OVERTIME RATES OF PAY..7 ARTICLE 8.00 HOLIDAY PAY... 8 ARTICLE 9.00 VACATIONS.9 ARTICLE MANAGEMENT'S RIGHTS..10 ARTICLE EMPLOYEE AND UNION COOPERATION...10 ARTICLE DISCHARGE OF EMPLOYEES SUBJECT TO ARBITRATION.11 ARTICLE LEAVES OF ABSENCE ARTICLE JURY DUTY ARTICLE BEREAVEMENT PAY ARTICLE NO STRIKE, NO LOCKOUT ARTICLE SENIORITY ARTICLE GRIEVANCE AND ARBITRATION ARTICLE HEALTH AND WELFARE - (FULL-TIME EMPLOYEES).. 17 ARTICLE PART-TIME EMPLOYEES ARTICLE BUSINESS AGENTS VISITS ARTICLE BULLETIN BOARDS ARTICLE WEARING APPAREL..20 ARTICLE BARGAINING UNIT WORK 20 ARTICLE EMPLOYEES PERSONNEL FILES 21 ARTICLE HEALTH & SAFETY..21 ARTICLE DURATION OF AGREEMENT 21 APPENDIX A.23 MEMORANDA OF UNDERSTANDINGS.25 LETTER OF UNDERSTANDING, VACATION YEAR..28 LETTER OF UNDERSTANDING, REGULAR TRIPPER SEVERANCE PAY 30

3 COLLECTIVE AGREEMENT WHEREAS: Hertz Canada, LTD, Rent-A-Car Division (hereinafter referred to as "The Company" or The Employer ) and the United Food and Commercial Workers Canada, Local 175 (hereinafter referred to as The Union ) desire to cooperate in establishing and maintaining conditions which will promote a harmonious relationship between the Company and the employees covered by this Agreement, and in providing methods for a fair and amicable adjustment of disputes which may arise between them, and to promote efficient operation. NOW, THEREFORE, the Company and the Union mutually agree as follows: ARTICLE 1.00: BARGAINING AGENCY 1.01 Consistent with Ontario Labour Relations Board file number R, and the Memorandum of Agreement entered into by the parties on August 6, 2013 (Appendix B ), the Company recognizes the Union as the sole collective bargaining agency for all Drivers and Lead Drivers employed by Hertz Canada, Ltd., Rent-A-Car Division at Pearson International Airport Service Center, Ontario, Canada. ARTICLE 2.00: UNION SECURITY 2.01(a) (i) The Employer shall during the term of this agreement as a condition of employment deduct from members of the bargaining unit, the regular weekly union dues and such union dues shall be remitted to the Union, in the format outlined in Article 2.01 (b) below, prior to the fifteenth (15 th ) of the month following the month in which such deduction is made. (ii) The Employer shall deduct membership initiation fees as may be established by the Union and forward any application forms and such fees to the Union in the format outlined in Article 2.01 (b) below, with the regular monthly dues remittance. 2.01(b) The remittance statement shall be documented by location containing a dues and initiation report which will be provided in the form of (remit@ufcw175.com) or on a computer diskette as well as a hard copy of the dues report being attached to the remittance cheque. The information being provided shall be on a standard spreadsheet in Excel, Quattro Pro, Lotus or other software program adaptable to the union. The spreadsheet will be in a table format provided by the Union and the Company will provide the following current information: 3 1. S.I.N

4 2. Employer number if applicable. 3. Full name (last/first/initials). 4. Full address including city and postal code. 5. Telephone number (including area code). 6. Date of hire. 7. Rate of pay. 8. Classification. 9. Full time or Part time designation. 10. Union dues deducted (or a reason deduction was not made). If dues are deducted weekly, report requires five (5) columns for reporting. 11. Total dues deducted. 12. Back dues owing. 13. Vacation pay breakdown of dues owing. 14. Initiation dues deducted. 15. Total initiation fees deducted. It is the responsibility of the employee to provide the Employer with personal address and telephone information, and to promptly notify the Employer of any changes affecting such contact data It is understood and agreed that the first ninety (90) calendar days of employment employees shall be on a trial period and during this period they may be discharged by the Company with or without just cause. New employees may be secured from any source the Company desires. Probationary employees are not eligible for any benefits except as may be required by Ontario labour law The Company agrees to record the annual Union dues deductions for each employee on his/her T4 Form. ARTICLE 3.0: NO DISCRIMINATION, NO HARASSMENT 3.01 The Employer and the Union agree that neither will discriminate against or harass either directly or indirectly nor will they permit any of their agents, members or representatives to discriminate against or harass either directly or indirectly, any employee by reason of race, creed, color, nationality, religion, age, sex, sexual orientation, nondisqualifying physical or mental disability, marital or veteran status, or membership or activity in the Union The use of the masculine gender in this agreement shall include both male and female if applicable in the context of the sentence. 4

5 ARTICLE 4.00: BASIC WORK WEEK 4.01 The basic, scheduled work week for full-time employees shall consist of no more than eight and one-half (8 ½) hours per day totaling no less than thirty-four (34) hours per workweek or more than forty-two and one-half (42½) hours in a workweek. All lunch periods shall be thirty (30) minutes unless agreed upon by the Company to be longer, and shall be unpaid Part time employees shall not work more than twenty- eight (28) hours in a work week except as may be necessary to replace full-time employees who are absent for such reasons as vacation and leaves of absence due to illness or injury or as otherwise may be granted under Articles dealing with such matters as Pregnancy or Parental Leave, Jury Duty, or Bereavement Leave. In the event a dispute arises, the Company shall provide the Union with relevant details Shift bids that are determined necessary by the Company shall be posted at the Service Center as needed for a minimum of seven (7) calendar days. Shift bids shall be completed in writing no more than seven (7) calendar days after the posting period to become effective the following work week and shall be bid by seniority in classification. Shift bids for Leads will be separate and apart from the non-lead shift bids on the same terms and conditions set forth herein (a) Shift bid schedules shall be provided -- before and after completion-- on a timely basis to the unit Steward(s). (b) The Company will provide employee s shift bid selection sheets at the time of posting. (c) Employees will select their preferred shifts by numbering and submit to the Company on or before the posting end date. (d) The Company shall make a reasonable attempt to contact employees who are off work during the posting period and advise them of their rights and obligations set forth in 4.04 (a), (b) and (c). Contact shall be by telephone at the number provided to the Company by the employee All bargaining unit vacancies that the Employer elects to fill in the Driver classification will be posted at the Service Center for a minimum of seven (7) calendar days. While Lead Driver vacancies that the Company elects to fill shall be posted consistent with the posting protocol listed herein, the selection of Lead Drivers shall be at the discretion of the Company with due consideration of qualified individuals from the Driver classification A part-time employee cannot use seniority for the purpose of displacing a full-time 5

6 employee during a shift bid. A full-time employee shall not have the right to displace a part-time employee during a shift bid unless a position is available. ARTICLE 5.00: REST PERIODS 5.01 Employees shall be allowed two (2) fifteen (15) minute rest periods per eight and one-half (8 ½) hour shift, exclusive of a thirty (30) minute unpaid lunch period, at a time determined by the supervisor or designated person in charge. Employees who work less than an eight and one-half (8 ½) hour shift shall receive a paid fifteen (15) minute rest break during each four (4) hour work segment The Company agrees to maintain its present policy in respect to lunch and rest rooms for the use of the employees. In the event business conditions or operational requirements dictate a change in policy, the parties shall meet to discuss the impact of the policy change and discuss options Employees who work a schedule of more than five (5) consecutive hours shall receive an unpaid meal period of thirty (30) minutes. The Company will schedule employee meal periods between the third (3rd) and fifth (5th) hours of the employee's shift Employees when required to report for a minimum of an eight and one-half (8 ½) hour shift and not sufficient work is available shall be guaranteed four (4) hours' work, or four (4) hours' pay in lieu thereof, at their regular hourly rates of pay. However, when employees are required to attend a Company meeting, they shall be guaranteed four (4) hours call-in pay only. Work schedules shall not be changed without two (2) calendar days notice to each employee affected by such change, however, this shall not apply in an emergency situation. Remuneration under Article 5.04 for employees scheduled to work less than an eight and one-half (8 ½) hour shift shall be in compliance with Ontario labour law (a) The Company shall provide employees at the Service Center with time sheets or time clocks in order to enable employees to record their time for payroll purposes. (b) Employees will be paid by Thursday for the previous weeks work week based on a weekly payroll system. ARTICLE 6.00: WAGES 6:01 The minimum hourly rate of wages for all employees coming under this Agreement shall be as per Appendix "A" of this Agreement, provided that where an individual 6

7 employee's hourly wage is higher, such hourly rate of wages shall not be reduced by reason of this Agreement Consistent with Ontario labor law inclusive of the Employment Standards Act as amended, there will be a minimum of eleven (11) hours between the time an employee concludes one (1) scheduled work shift and commences the next scheduled work shift except in cases of emergencies beyond the control of the Company or where an employee voluntarily changes his shift (Schedule change) Any employee assigned to work in a higher classification will be paid the higher classification rate for all time worked in that classification Employees selected by the Company to work in a Lead capacity shall be paid one dollar ($1.00) above his base rate of pay for all hours worked in such a capacity. The Lead pay differential shall be included with base pay for purposes of overtime calculations. ARTICLE 7.00: OVERTIME RATES OF PAY 7.01 All time worked in excess of eight and one-half (8 ½) hours per day or forty- two and one-half (42 ½) hours in the employee's work week shall be paid for at the rate of one and one-half (1 ½) times the employee s regular hourly rate of pay. Employees will not be permitted time off in lieu of overtime pay. Time paid but not worked for holidays and vacation shall count as time worked for purpose of overtime calculations and benefit eligibility; no other time paid but not worked (e.g., sick pay, jury duty, bereavement pay) shall be treated as such Overtime shall be offered on a seniority basis, wherever possible, as follows: (a) (b) If overtime becomes available, the Company will offer the overtime of (4) four hours or less to employees who are working or who are scheduled to work that day. If overtime becomes available, the Company will offer the overtime of more than (4) four hours to employees who are not scheduled to work that day. (c) In the event there are insufficient volunteers in either case (a) or (b), the most junior employee will be required to work the overtime. 7

8 ARTICLE 8.00: HOLIDAY PAY 8:01 STATUTORY HOLIDAYS. There shall be nine (9) statutory holidays and one (1) Civic Holiday for regular full -time employees during the term of this Agreement. Part-time employees shall receive statutory holiday pay in accordance with the applicable provisions of Ontario law. These holidays are as follows: Victoria Day New Year's Day Labour Day Boxing Day Canada Day Thanksgiving Day Civic Holiday Christmas Day Good Friday Family Day The above holidays shall be observed on the day generally recognized in the area. Should the Federal and/or Provincial Government proclaim an additional holiday mandating that the Company give employees the day off with pay consistent with the Employment Standards Act as amended, the holiday shall be added to the list of ten (10) holidays. In such event, a floating holiday provided for in Section 8.02 shall be eliminated. In order for an employee to receive holiday pay, he must not have been voluntarily absent from work on any part of his scheduled work day prior to and following such holiday unless otherwise provided for by law FLOATING HOLIDAYS. Regular full-time employees shall be eligible for two (2) floating holidays as of the first of the year following the completion of one (1) year of service. The Floating Holidays will be granted by the Company to employees provided the employee gives the Company at least seven (7) calendar days written notice, subject further to the Company s reservation of the right to limit the number of Drivers off at the same time to the number that is reasonably possible and practicable without jeopardizing the Company s business and operational requirements. Such allocations shall be made on a first-request first-given basis. In order for an employee to receive paid holiday pay, he must not have been voluntarily absent from work on his scheduled work day prior to and following such holiday. 8:03 In a week in which one (1) paid holiday occurs, the normal basic work week for fulltime employees shall be reduced by the number of hours the employee is regularly scheduled to work in a workday. For example, a regular workweek of five seven-hour days would be reduced from thirty-five (35) to twenty-eight (28) hours, but the employee would be paid for thirty-five (35) hours. 8

9 8.04 In the event that two (2) paid holidays fall in one (1) week, the work week shall be reduced by two times the number of hours the employee is regularly scheduled to work in a workday. ARTICLE 9.00 VACATIONS 9.01 Any regular full-time employee with one (1) year service as of their anniversary date of hire shall receive two (2) weeks vacation at his or her regular rate of pay or four percent (4%) of total compensation whichever is greater All regular full-time employees who have completed four (4) years of continuous service with the Company as of their anniversary date of hire shall receive three (3) weeks vacation at his or her regular rate of pay or six percent (6%) of total compensation whichever is greatest All regular full-time employees having completed ten (10) years or more of continuous service with the Company as of their anniversary date of hire shall receive four (4) weeks vacation at his or her regular rate of pay, or eight per cent (8%) of the total compensation, whichever is greatest All regular full-time employees having completed eighteen (18) years or more of continuous service with the Company as of the anniversary date of hire shall receive five (5) weeks vacation at his or her regular rate of pay, or ten per cent (10%) of the total compensation, whichever is greatest Vacation pay as delineated in 9.01 through 9.04 above, shall be paid in the appropriate amounts concurrent with the taking of the vacation except that employees who make a timely [no less than two (2) weeks in advance] written request for no less than one (1) week s advance vacation pay shall, if other applicable provisions of the Collective Agreement are adhered to, receive the (advance) vacation pay the week prior to the taking of the vacation. If employment is terminated either by the Employer or employee, the employee is entitled to earned, unpaid vacation pay as may be afforded him under Ontario labour law inclusive of the Employment Standards Act as amended Times at which such vacation are taken shall be scheduled by the Company according to work classification seniority The Company agrees that it will allow, on the posted vacation schedule, the number of Drivers off at the same time that is reasonably possible and practicable without jeopardizing the Company s business and operational requirements. Unless operational requirements preclude, the Company shall allow a minimum of four (4) employees to take vacation concurrently. Effective January 1, 2016, the Company shall allow a minimum of five (5) employees to take vacation concurrently under the terms and conditions set forth 9

10 herein Part-time employees eligibility for vacation pay shall be in compliance with Ontario labour law, inclusive of the Employment Standards Act as amended All employees will be paid out for all vacation pay owed by their anniversary date each year. They will be given a copy of total compensation calculations minus any unused vacation monies as of their anniversary date each year When the Employer approves the taking of a single vacation day, the vacation pay shall be paid in the employee s regular weekly payroll check. ARTICLE 10.00: MANAGEMENT'S RIGHTS The rights of the Employer shall include, but shall not be limited to, his right to conduct the business, his operation and the direction of his working forces. The Employer's discretion and judgment shall control the selection and retention of employees and the work and duties to which they are assigned, including the right to hire, transfer, schedule, promote, demote, suspend and discharge for just cause and the right to make rules and regulations concerning the conduct of the business and the employee, providing the same are not contrary to the terms of this Agreement. The failure of the Company to exercise its rights under this Agreement in any respect shall not be taken as a waiver of its rights. ARTICLE 11.00: EMPLOYEE AND UNION COOPERATION The employees agree to uphold the rules and regulations of the Company in regard to punctual and steady attendance and shall give two (2) hours notification in case of absence for the P.M. shift, and whenever reasonably possible, six (6) hours notification on the A.M. shift, conduct on the job, and all other reasonable rules and regulations, established by the Company, shall continue to be upheld by the employee The employees agree to co-operate with the Company in maintaining and improving safe working conditions and good housekeeping of the working area and caring for equipment and machinery The Union agrees to co-operate when requested by the Company in correcting inefficiencies of its members which might lead to discharge (a) 10 The Company agrees to recognize the appointed or elected representative(s) of the Union in the Service Center who shall be known as the Union Steward(s). No more than two (2) Stewards and two (2) Alternates may be appointed or elected and such appointment or election shall require the

11 completion of the probationary period(s) specified in Article 17 of the Agreement. (b) (c) The Union will inform the Company in writing of the name(s) of the Steward(s) and Alternate(s) and of any subsequent change(s) thereof. Authority of Steward The authority of the Steward designated by the Union shall be limited to and shall not exceed the following duties and activities: (1) Investigation and presentation of grievance in accordance with the provisions of the Agreement during his working hours, upon appointment with his supervisor of the Company's representative; however, at no time will this procedure interfere with the normal conduct of business. (2) The transmission of such messages and information which shall originate with and are authorized by the Business Agent, provided such messages and information have been put in writing or, if not in writing, are of a routine nature and do not involve work stoppage, slow-downs, or any other interference with the Company's business It is agreed that the Negotiating Committee for this Unit shall be composed of two (2) members and these employees shall be compensated for scheduled straight time hours by the Company to a maximum of eight and one-half (8 ½) hours per day of negotiations. 11:06 Employees who wish to be considered for job vacancies other than their classification shall advise the Company in writing of their intent. The Company agrees it will consider such request for future job vacancies. 11:07 Should any new job classification or classifications be established by the Company during the term of this Agreement, the parties agree that the rate of pay for such new classification shall be negotiated between them, provided, however, that in the event the parties are unable to agree, the employee shall work at whatever rate shall be set by the Company and the matter shall be submitted to arbitration as is provided in the grievance procedure and the parties shall abide by the result of the arbitration. ARTICLE 12.00: DISCHARGE OF EMPLOYEES SUBJECT TO ARBITRATION 11

12 12.01 If a post probationary employee (as defined herein at 2.02) is of the opinion that there has been an improper dismissal and the same is not adjusted by mutual agreement and the Union has submitted to the Company a timely grievance in writing signed by the employee concerned then such dismissal may constitute a grievance to be adjusted through utilizing the procedure under the Grievance and Arbitration Sections of this Agreement. Such grievance shall be filed at Step Two of the grievance procedure Disciplinary documents in an employee's file, other than those involving suspension, will be removed after one (1) year unless it is part of a progressive discipline and each progression is given within the succeeding year. Disciplinary documents in an employee's file involving suspension will be removed after twenty-four (24) months unless it is part of a progressive discipline and each progression is given within the succeeding year When a disciplinary interview is held with an employee, a Steward, if available, will be present unless the employee requests otherwise. In the event a Steward is not available, the employee subject to the disciplinary interview may request the presence of a bargaining unit employee of his choice who is at work, willing to participate, and whose presence at the meeting would not cause an interruption to Company operations. In the event no Union representation is available, the interview shall be postponed unless the employee subject to the interview agrees to proceed without representation. ARTICLE 13.00: LEAVES OF ABSENCE 13:01 The Company agrees to allow time off work without pay for one (1) delegate elected to attend Union Conventions or designated to attend negotiations for a period of not more than ten (10) working days a year. Requests for more than one (1) delegate shall be decided by mutual agreement between the Company and the Union. The Union will give the Company two (2) weeks' notice in regard to such request to attend conventions. 13:02 The Company agrees to grant time off without pay and without discrimination to not more than one (1) employee designated by the Union for a maximum of six (6) months or a longer period as may be mutually agreeable to serve in any capacity of official Union business. Any employee who has been granted leave of absence to serve the Union in an official capacity shall neither lose nor gain seniority upon his returning to work. 13:03 Non-Statutory Leaves of Absence. Any employee's request for a leave of absence not subject to Ontario labor law inclusive of the Employment Standards act as amended must be in writing to a member of management where such application will be given full consideration. In evaluating an employee s request for a personal leave, the Company will review such factors as the reason(s) for the leave, the length of employment, and the impact of granting the leave upon the efficient operation of the Company s business. As part of its review process, the Company reserves the right to request information that is 12

13 reasonably necessary for the formulation of a decision. The Company shall reply in writing within two (2) weeks, to all written requests for leave of absence with one (1) copy to the employee concerned and one (1) copy to the Union Steward at the location where the employee is employed. Under no circumstances will a leave of absence in excess of ninety (90) calendar days be granted, and all such leave shall be without pay. Employees on an approved leave of absence under Article shall accrue no seniority while on leave and shall be terminated for failure to return to work on the basis and conditions stipulated by the Company in the written approval document. Employees shall be responsible for the full cost of any health and welfare (dental, vision, healthcare, prescription drug, life insurance) premiums for any non-statutory leave of thirty (30) calendar days or longer in the event such coverage is desired : Statutory Leaves of Absence. The Company shall comply with Ontario labor law inclusive of the Employment Standards Act with regard to the processing of leaves of absence falling under the jurisdiction of said agency (ies). Such leaves include pregnancy, parental, family medical, and emergency leave. ARTICLE 14.00: JURY DUTY 14:01 Employee summoned to Jury Duty shall be paid wages amounting to the difference between the amount paid them for Jury services and the amount they would have earned had they worked on such days, up to their regularly scheduled hours. This does not apply if the employee is excused from Jury Duty at a time that affords him the opportunity to return to work on a scheduled day or days and work one-half (1/2) or more of his shift. The employee must supply an official document of Jury Service The employee shall notify the Company of his court commitment prior to the preparation of the schedule for the week involved Any employee who is called as a Crown witness in Court for any case shall be paid for all time lost if called to testify during his working hours. If witness fees are paid, the employee shall refund them to the Company. Payment in this instance shall require proof of witness by court subpoena. ARTICLE 15.00: BEREAVEMENT PAY Employees shall be granted time off from work with pay up to (emphasis added) a maximum of five (5) consecutive scheduled work days, in the event of a death in the immediate family for which he attends the funeral or ceremony. The length of such leave shall be determined by the Company. The term "immediate family" shall mean spouse, parent, child, brother or sister, current mother-in-law, current father-in-law, or common-law spouse In addition to the above, the Company agrees to grant employees the necessary time off from work, with pay, to a maximum of one (1) full day at the time of the death of 13

14 the employee's grandparents or brother-in-law or sister-in-law or son-in-law or daughter-in-law, provided the employee attends the funeral. ARTICLE 16.00: NO STRIKE, NO LOCKOUT 16:01 The parties hereto agree that the Union, its members and all the employees covered by this Collective Bargaining Agreement shall not, during the term of this Agreement, cause, authorize, promote, instigate, permit nor take part in any strike against the Company for any reason. The Company shall not resort to or declare lockout during the term of this Agreement. ARTICLE 17.00: SENIORITY 17:01 Seniority shall be defined as the length of continuous employment with the Company in the bargaining unit. All Drivers hired or rehired (after leaving the Company) for full time work shall be regarded as probationary for ninety (90) calendar days. All Drivers hired or rehired (after leaving the Company) for part time work shall be regarded as probationary for one hundred twenty (120) calendar days. These probationary periods may be extended by mutual agreement, and the request of the Company for such an extension shall be made in writing to the assigned Union Business Agent Probationary employees may be terminated with or without cause and without recourse to the grievance procedure during the probationary period, except for reasons protected by Canadian law, including the Human Rights Code An employee who successfully complete the probationary period shall have his seniority computed from his date of hire or rehire, 7:04 Seniority shall be the governing factor in matters of vacation and holidays, layoff and rehire after layoff, and the filling of vacancies or new positions providing the employee has the knowledge, skill and experience necessary to perform the work required in the requisite timeframe. 17:05 There shall be separate seniority lists for full time and part time employees: Full Time The seniority for all full time employees covered by the Terminal Tripper Collective Agreement as of July 26, 2013, shall be in descending order of seniority and thereafter seniority for the full time employees formerly known as Regular Trippers shall be placed in descending order on the seniority list Part Time Part Time employees from both groups shall, effective July 26, 2013, have their seniority joined together. 14

15 Once both groups are placed on the seniority lists as described above, then each employee shall be assigned a seniority ranking starting from #01 for the employee identified as the person with most seniority. Once the seniority list is established, it shall remain in force. A seniority list(s) of bargaining unit employees will be permanently posted and dated at the Service Center and will be updated each January and July. A copy of the seniority list will be forwarded to the Union office concurrent with the posting schedule Disputes regarding seniority shall be settled by the Employer and the Union. Failing settlement by these parties, the matter shall be processed under the Grievance Procedure of this Agreement. Any protest to the seniority list must be made in writing within thirty (30) calendar days of the posting schedule specified in above. In the event no protest is made, the seniority list as posted shall be considered correct and final. 17:07 An employee's seniority rights shall cease and his employment with the Company shall terminate if: (1) He quits voluntarily; (2) He is discharged for proper cause; (3) He is absent for three (3) consecutive working days without authorization and/or without notifying the Employer; (4) He does not return to work by the date specified by the Employer by a recall from layoff letter sent by registered mail with return receipt requested addressed to him at the last address he has given the Employer. (5) He does not return from a leave of absence as approved and scheduled. (6) He is laid off in excess of twelve (12) consecutive months; (7) He accepts a position with another employer while on leave of absence. (8) He is unable to work due to injury or illness for eighteen (18) consecutive months or for the period of time mandated by Provincial law including the Human Rights Code as amended. 17:08 The Company agrees to give no less than one (1) week's notice prior to changing an employee's status from a full-time to part-time basis. 17:09 Employees promoted to management will be granted a thirty (30) calendar day "right to return" privilege with no loss of bargaining unit seniority. 15

16 ARTICLE 18.00: GRIEVANCE AND ARBITRATION 18:01 A grievance is a protest by an employee against the Employer because of an alleged violation of a specific provision of this Agreement. Every effort shall be made to settle any grievance as expediently as possible in accordance with the following procedure. However, a grievance must be heard at the first step within ten (10) working days of the alleged violation and/or knowledge of the same to be recognized by the Company. 18:02 STEP 1 - The grievance shall first be taken up with the appropriate immediate supervisor. STEP 2 - The aggrieved employee must reduce his complaint in writing and submit it to the Area Manager or his designated representative within seven (7) working days of the alleged violation. The Area Manager or his designated representative will give his written answer within seven (7) working days from the date the grievance was presented to him in writing.. STEP 3 - If the Union desires to process the grievance further, it shall be taken up by the Business Representative of the Union with the Sr. Human Resources Business Partner or his designated representative within seven (7) working days from the date the Area Manager or his designated representative gives his written answer. The Sr. Human Resources Business Partner, or assigned, will give his written answer within seven (7) working days after receipt of the second step. STEP 4. - If the Union desires to arbitrate the grievance after having been fully processed according to the provisions of this contract, it shall be submitted to arbitration as follows: (a) Within seven (7) working days after receipt of the Employer's written answer in the third step, the Union shall notify the Employer in writing of its intention to submit the grievance to arbitration. (b) (c) The parties will attempt to agree upon an arbitrator, but upon failure to agree the parties will request the Minister of Labour of Ontario to appoint an Arbitrator. The Employer and the Union shall jointly prepare and sign for the arbitrator a submission setting forth the issue or issues in dispute. If a submission cannot be agreed upon between the Employer and the Union, each party shall submit to the arbitrator and to each other a statement of the issues it considers to be in dispute. 16

17 18:03 The arbitrator shall not have the power to add to or subtract from or modify any of the terms of this Agreement or any Agreements supplemented hereto. 18:04 In any proceeding seeking to require to stay arbitration, or to stay, enforce, modify, or set aside a decision or award of the arbitrator, none of the provisions of this contract shall deprive a court of its power to determine questions of arbitrability, or the jurisdiction of an arbitrator or the validity of any decision or award of the arbitrator. 18:05 Each party shall bear its own expense with respect to the preparation and presentation of the matter to the arbitrator, but the cost or expense of the arbitrator and the conference room shall be borne equally by the Employer and the Union. 18:06 The decision of the arbitrator shall be binding upon the Employer and the Union during the duration of this Agreement. In the event that either party shall refuse to agree to the arbitrator's decision, the other party shall be allowed all legal and/or economic recourse. ARTICLE 19.00: HEALTH AND WELFARE FULL-TIME EMPLOYEES DENTAL CARE PLAN. Full-time employees and their eligible dependents may elect to receive coverage in the Company's Dental Care Plan which shall be paid for by the Company and shall be in accordance with the Master Policy terms and conditions of the Company s underwriter. Such coverage shall commence the first of the month following the completion of ninety (90) calendar days of service, except that the commencement date of coverage for employees hired on or after August 24, 2015, will be the first of the month following twelve (12) consecutive months of service The terms and conditions of The Hertz Dental Care Plan shall be subject to revision from time to time and such revisions will automatically be extended to employees covered by this Agreement at the earliest feasible date, but no later than six (6) months from the date of such revision VISION CARE PLAN. Full- time employees and their eligible dependents may elect to receive the Company Vision Care Plan which shall be paid for by the Company and shall be in accordance with the Master Policy terms and conditions of the Company s underwriter. Such coverage shall commence the first of the month following the completion of ninety (90) calendar days of service, except that the commencement date of coverage for employees hired on or after August 24, 2015, will be the first of the month following twelve (12) consecutive months of service The terms and conditions of The Hertz Vision Care Plan shall be subject to revision from time to time and such revisions will automatically be extended to employees covered by this Agreement at the earliest feasible date, but no later than six (6) months from the date of such revision. 17

18 19.03 EXTENDED HEALTHCARE PLAN. Effective July 1, 2016 employees with ninety (90) or more calendar days of service who were hired before October 1, 2015 may elect to enroll themselves and their eligible dependents in the Company's Extended Healthcare Plan (supplemental to the Ontario Health Insurance Plan) which shall be paid for by the Company and shall be in accordance with the Master Policy. Employees hired on or after October 1, 2015 will be eligible to enroll in the Plan the first of the month following twelve (12) consecutive months of service Eligible dependents are defined as and limited to the employee s spouse or common law spouse; dependent children younger than 21, or 21 years of age but younger than 26 years of age, dependent on the enrolled parent for financial support while in full time attendance at an accredited institute of learning; and any disabled child who, regardless of age, is financially dependent on the enrolled parent as sanctioned as a matter of law The terms and conditions of the Extended Healthcare Plan shall be subject to revision from time to time and such revisions will automatically be extended to employees covered by this Agreement at the earliest feasible date, but no later than six (6) months from the date of such revision PRESCRIPTION DRUG PLAN. Effective, April 1, 2016, employees with ninety or more (90) calendar days of service, who were hired before October 1, 2015 may elect to enroll themselves and their eligible dependents in the Company's Prescription Drug Plan which shall be paid for by the Company and shall be in accordance with the Master Policy terms and conditions. Employees hired on or after October 1, 2015 will be eligible to enroll in the Plan the first of the month following twelve (12) consecutive months of service The terms and conditions of the Prescription Drug Plan shall be subject to revision from time to time and such revisions will automatically be extended to employees covered by this Agreement at the earliest feasible date, but no later than six (6) months from the date of such revision BASIC LIFE INSURANCE. Effective November 1, 2015, employees with ninety (90) calendar days of service shall be covered under the terms of a Basic Life Insurance Policy underwritten in the amount of ten thousand dollars ($10,000). Spousal and dependent life insurance shall be five thousand dollars ($5,000) for a spouse and two thousand five hundred dollars ($2,500) for an eligible child. Employees hired on or after October 1, 2015 and their eligible dependents shall be likewise covered the first of the month following twelve (12) consecutive months of service SICK PAY. An employee who has one (1) year's seniority who has worked no less than sixty (60) percent of his scheduled work shifts in the preceding twelve month period commencing November 1 and ending October 31, shall be paid his regular straight time pay for each full absence from a scheduled work shift as a result of a bonafide illness or injury up to a maximum of four (4) days per calendar year. Effective November 1, 2013 the 18

19 number of sick days shall be increased to five (5) and on November 1, 2014 the number of sick days shall be further increased to six (6) on the same terms and conditions set forth herein. Unused sick days shall be paid to each eligible employee the payday immediately preceding December 25 of each calendar year. The pay for unused sick pay shall be at one and one-half (1&1/2) time the employee s regular straight time hourly wage. An employee whose employment is severed for any reason prior to the distribution of unused sick day pay shall not be eligible for any unused sick day pay. ARTICLE 20.00: PART-TIME EMPLOYEES 20:01 Part-time employees are employees who are scheduled to work twenty-eight (28) or less hours per week. Part-time employees shall receive statutory holiday pay and vacation pay in accordance with the applicable provisions of Ontario law. Vacation pay will be paid each pay period as a percentage of earnings. With regard to vacation time off, all part time employees with a minimum of one (1) year of continuous service shall be eligible for two (2) weeks off each calendar year. Effective January 1, 2016, part-time employees with one (1) or more years of continuous service shall be eligible for one (1) personal day with pay under the applicable terms and conditions set forth in Article 8.02 of this Agreement. It is understood that part time employees shall not receive any other benefits. However, should any part- time employee work three (3) consecutive months on a scheduled fulltime basis, excluding vacation relief and any manner or form of leave; said part- time employee shall commence (on the first day of the month following attainment of six (6) months of full-time service) to be eligible for all other benefits specified in this Agreement that extend to full-time employees. Such expanded benefits shall continue for as long as they remain a full- time employee The number of part-time employees shall not exceed forty-five percent (45%) of the total number of employees in the Driver classification, including Leads. In the event of a layoff, part-time employees shall be laid off first in reverse order of seniority except in the event the Company s business requirements dictate the retention of the 45/55 ratio of part-time to full-time employees. In such cases, the least senior full-time employees will be offered the opportunity to transfer to part-time status. ARTICLE 21.00: BUSINESS AGENT VISITATION The authorized business agent or representatives of the Union will be permitted to talk with any employee regarding Union matters during regular working hours. It is understood that such Representative shall first notify the management of their presence. 19

20 ARTICLE 22.00: BULLETIN BOARDS 22:01 The Company agrees that during the term of this Agreement, it will make space available to the Union at the Service Center for a secure (glass, lock and key) bulletin board to be used exclusively for the purpose of posting notices directly relating to the employees of the location, on approval of management. The cost of the bulletin board shall be shared equally by the parties. The Company will inform the Union of the installed cost of the board and with the Union s acceptance proceed with the installation. ARTICLE 23.00: WEARING APPAREL 23:01 The Company will provide on a timely basis and without cost, any Hertz apparel that it may require to be worn during the course of the work day as part of its dress code and safety policies. Employees shall be responsible for the reasonable care and upkeep of issued apparel and the return of same upon termination of employment. On or about October 1, 2015, a Company identification card shall be issued to all employees which shall be returned upon termination of employment. ARTICLE 24.00: BARGAINING UNIT WORK All employees shall move vehicles between the Hertz Service Facility currently located at 2 Convair Drive East and Toronto Pearson International Airport Terminals (currently Terminals 1 & 3), and between Toronto Pearson International Airport and outlying Hertz and Dollar Thrifty locations, both within and outside the Greater Toronto Area, including but not limited to Landmark Aviation, Skyservice, Skycharter (Hanger 8), and other such Fixed Base Operations. Such vehicle movements may originate at the Hertz Service Facility located at 2 Convair Drive East, or at any of the Toronto Pearson International Airport Terminals (currently Terminals 1 & 3), and end at any of the Toronto Airport Pearson International Airport Terminals or any outlying location, or may begin at any outlying location and end at 2 Convair Drive East or at any of the Toronto Pearson International Airport Terminals. The Company will utilize supervisors to shuttle crews to and from off airport locations and may, from time to time, use lead drivers as necessary Individuals excluded from the Bargaining Unit shall not perform bargaining unit work except in cases of absenteeism, emergencies, training, and peak rental periods (for example, bottlenecks, traffic blocks, cancelled or delayed flights) when Bargaining 20

21 Unit employees capable of performing the work are not available. ARTICLE 25.00: EMPLOYEES PERSONNEL FILES 25:01 Employees will be permitted reasonable access to their personnel files on their own time, provided they give advance notice. Files and all data and information therein are the property of the Company and shall not be removed from the facility. Copies of data that may be requested by an employee shall be made at reasonable cost to the requesting employee. ARTICLE 26.00: HEALTH & SAFETY 6.01 The Company and the Union agree that they mutually desire to maintain standards of safety and health in the workplace in order to prevent accidents, injury and illness and shall have a committee of representatives from the Company and a minimum of one (1) Union employee represented by this Agreement who will meet on a frequency no less than proscribed by the Occupational Health and Safety Act of Ontario. 26:02 The Company agrees to notify the Union in all cases in which workers are being accommodated under Bill 162 of the Workers Compensation Act. ARTICLE 27.00: DURATION OF AGREEMENT This Agreement shall continue in full force and effect from August 24, 2015 up to and including August 23, :02 This Agreement shall be automatically renewed from year to year unless notice by registered mail is given by either party to the other for amendment or termination, not less than thirty (30) calendar days or more than ninety (90) calendar days before the termination date of the Agreement or preceding the anniversary date in any year thereafter. After such notice is given by either party to the other to amend or terminate this Agreement, this Agreement shall remain in full force and effect until a new Agreement is signed or completion of mediation proceedings as prescribed by law, whichever shall first occur IN WITNESS WHEREOF, the Union and the Employer have caused this Agreement to be executed in their names by their duly authorized representatives: 21

22 HERTZ CANADA, LTD. UNITED FOOD & COMMERCIAL WORKERS RENT-A-CAR DIVISION CANADA, LOCAL 175 BY: DATE: BY: DATE: 22

23 APPENDIX A, WAGES A. WAGES The following wage progression shall be in effect on August 24, 2015 subject to the ratification of the Successor Agreement: Start $ months $ months $ months ` $ months and more $12.90 Full and part time employees shall receive a one-time lump sum payment of two hundred dollars ($200) within two payroll periods following a first time out ratification completed on or by October 15, 2015, providing further that they are on the payroll at the time of ratification and the time payments are made. Effective August 24, 2016, the wage progression shall be increased as follows: Start $ months $ months $ months $ months and more $13.35 Effective August 24, 2017, the wage progression shall be increased as follows: Start $ months $ months $ months $ months and more $14.00 B. PREMIUM AND DIFFERENTIAL PAY Lead Drivers. The Company, at its discretion, may appoint, assign and maintain lead person(s), who shall receive one dollar ($1.00) per hour over their regular rate for all work performed in such capacity. Leads will be selected on the basis of the Company s assessment of qualifications (relevant skills, knowledge, experience, and work record) with due consideration of seniority. 23

24 HERTZ CANADA, LTD. UNITED FOOD & COMMERCIAL RENT-A-CAR DIVISION WORKERS CANADA, LOCAL 175 BY: DATE: BY: DATE: 24

25 MEMORANDUM OF UNDERSTANDING The Company will contribute three hundred and fifty dollars ($350.00) to the UFCW Training and Education Fund each year commencing the second year of the term. Payment will be made by the second payroll period following the anniversary date. HERTZ CANADA, LTD. UNITED FOOD & COMMERCIAL RENT-A-CAR DIVISION WORKERS CANADA, LOCAL 175 BY: DATE: BY: DATE: 25

26 Memorandum of Understanding between HERTZ CANADA, LTD and UNITED FOOD & COMMERCIAL WORKERS CANADA, LOCAL 175 TERMINAL TRIPPERS, PEARSON INTERNATIONAL AIRPORT The below signed parties on behalf of The Hertz Corporation and the United Food & Commercial Workers, Local 175, agree to the following matters (BASIC WORK WEEK) The full-time employees hired before August 24, 2009 (Group A) referenced in 4.01 as amended are as listed on the Attachment A1 hereto (BASIC WORK WEEK) The list of exceptions to the scheduling of part-time employees for more than twenty-eight (28) hours is herewith expanded to include in the event full-time employees refuse to work additional hours (BARGAINING UNIT WORK To comport more fully with the original intent and understanding of the parties (i.e., available means now ), shall be administered inclusive of and consistent with the following: In such instances, bargaining unit employees not at work who have not advised the Company, in writing, of their interest and availability need not be called, and overtime need not be offered. Although the parties agree not to incorporate this Memorandum into the Collective Agreement, it is understood and agreed that it shall have the same weight and force as it would otherwise have if contained therein. 26