COLLECTIVE AGREEMENT

between

COLBEY CUSTOM FABRICATING CO. LIMITED

And

UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION

(THE UNITED STEELWORKERS) LOCAL 7049

APRIL l, 2009- MARCH 31, 2011

INDEX

ARTICLE PAGE NUMBER

1 Purpose of Agreement 1

2 Union Recognition 1

3 No Discrimination 2

4 Management 2

5 Established Practices 2

6 Union Security 2,3

7 Adjustment of Grievances 3, 4

7.04 Arbitration 4

8 Discharge and Disciplinary Procedure 5

9 Seniority 5,6

9.04 Job Posting 6 9.05 Seniority Lists 6 9.06 Layoff 6, 7 9.07 Temporary Transfers 7 9.08 Preferential Seniority 7

10 Bereavement Pay 7

11 Pay for Jury Service 7

12 Leave of Absence 8

13 Safety and Health 8,9

14 Pay on Day of Injury 9

15 Bulletin Boards 10

' ~

Index continued

ARTICLE PAGE NUMBER

16 Union Representatives 10

17 Committeemen and Stewards 10

18 Hours of Work 10

19 Overtime 11

20 Rest and Wash Up Periods 12

21 Shift Premium 12

22 Reporting for Work 12

23 Emergency Call Out Pay 12

24 Paid Holidays 13

25 Vacations 14

26 Benefits 15

27 Wages and Cost-of-living Allowance 15, 16, 17

28 Pension 17

29 Duration of Agreement 18

Appendix "A" Wages 19,20

Appendix "B" Summary of Benefit Items 21,22

Appendix "C" Summary of Apprenticeship Program 23

Appendix "D" Employee Assistance Program 24,25,26

'

between:

COLLECTIVE AGREEMENT

COLBEY CUSTOM FABRICATING CO. LIMITED or its successors and/or assigns, (hereinafter called the "Company")

-and-

UNITED STEEL WORKERS on behalf of its Local 7049 (hereinafter called the "Union")

OF THE FIRST PART

OFTHESECONDPART

ARTICLE 1 -PURPOSE OF AGREEMENT 1.01 Whereas the parties agree that it is mutually beneficial and desirable to arrange and

maintain fair and equitable earnings, labour standards, wage rates and working conditions to obtain efficient operations, to protect the safety and health of employees and to provide machinery for the adjustment of disputes which may arise between the parties hereto, therefore the Company and the Union agree as follows.

ARTICLE 2 -UNION RECOGNITION 2.01 The Company recognizes the Union as the sole and exclusive bargaining agency for

all of its employees save and except foremen, persons above the rank of foreman and office staff.

2.02 The terms and conditions set forth in this Agreement shall have full force and effect for all employees in the bargaining unit as described in the preceding paragraph.

2.03 Persons whose regular jobs are not in the bargaining unit shall not work on any jobs which are included in the bargaining unit except for purposes of instruction or experimenting.

2.04 The parties agree to meet from time to time to discuss matters of mutual concern. Such meetings shall be held during working hours within three (3) days of request of either party.

1

ARTICLE 3- NO DISCRIMINATION 3.01 The Company and the Union agree that there will be no discrimination against any

employee because of race, creed, colour, sex, national origin, Union membership or

Union activity.

ARTICLE 4- MANAGEMENT 4.01 The Union recognizes that it is the function ofManagement to manage the affairs of

the business and to direct the working forces ofthe Company, subject to the terms of

this Agreement.

Such Management function shall be: (1) To determine the products and schedules of production, the locations of

production, and the methods and sequence of manufacturing processes.

(2) To maintain discipline of employees, including the right to make reasonable

rules and regulations, provided however that any dispute as to the

reasonableness of such rules and regulations or any dispute involving claims

of discrimination against any employee in the application of such rules and

regulations shall be subject to the grievance procedures of this Agreement.

(3) To discharge, suspend or discipline employees for just and reasonable cause, and also to hire, transfer, promote, demote and to assign employees to shifts,

with due regard to seniority.

4.02 The Company shall not exercise its rights to direct the working forces m a

discriminatory manner.

ARTICLE 5- ESTABLISHED PRACTICES 5.01 Any rights and privileges enjoyed by the employees prior to the execution of this

Agreement shall be continued and no change shall be put into effect unless mutually

agreed to by the Company and the Union.

ARTICLE 6 - UNION SECURITY 6.01 Union Dues

The Company shall deduct Union dues including, where applicable, initiation fees

and assessments, on a weekly basis from the total earnings of each employee

covered by this Agreement. The amount of dues shall be calculated in accordance

with the Union's Constitution.

Part-time employees who work at least five (5) days in a month will have union

dues deducted from their total earnings.

2

6.02 All dues, initiation fees and assessments shall be remitted to the Union forthwith and in any event no later than 15 days following the last day of the month in which the remittance was deducted. The remittance shall be sent to the International Secretary of the United Steelworkers, AFL-CIO-CLC, P.O. Box 13083 Postal Station 'A', Toronto, Ontario M5W 1V7 in such form as shall be directed by the International Union to the Company along with a completed Dues Remittance Form R-115. A copy ofthe Dues Remittance Form R-115 will also be sent to the Union office designated by the Area Coordinator.

6.03 The remittance and the R-115 form shall be accompanied by a statement containing the following information:

a) A list ofthe names of all employees from whom dues were deducted and the amount of dues deducted;

b) A list of the names of all employees from whom no deductions have been made and reasons;

c) This information shall be sent to both Union addresses identified I Article 6.02 in such form as shall be directed by the Union to the Company.

6.04 The Union shall indemnify and save the Company harmless against all claims or other forms of liability that may arise out of any actions taken by the Company in compliance with this Article.

6.05 The Company, when preparing T-4 slips for the employees, will enter the amount of Union dues paid by the employee during the previous year.

ARTICLE 7- ADJUSTMENT OF GRIEVANCES 7.01 The purpose of this Article is to establish procedures for discussion, processing and

settlement of grievances as defined in Section 7.02 of this Article.

7.02 "Grievance" as used in this Agreement is a complaint or request involving any matter relating to wages, hours or working conditions, including question of interpretation or application of, or compliance with, the provisions of this Agreement and shall only relate to or concern any grievance which has arisen or arises subsequent to the date of this Agreement.

STEPl An employee who believes that he has a justifiable request or complaint may discuss the request or complaint with his foreman, with the grievance committeeman present or the grievance committeeman may discuss such matter with the employee's foreman. The foreman shall state his decision or his refusal to make a decision in writing and submit same within twenty-four (24) hours or a time mutually agreed upon.

3

STEP2 Should the grievance committeeman or the employee be dissatisfied with the Company's disposition of the matter, he may refer such matter to Management on a written grievance form. At any meeting held by the parties to the dispute the representative of the International Union may be present. Management shall issue a decision on the matter in writing within two (2) working days of the meeting held to discuss the matter.

7.03 The Union shall have the right to initiate a group grievance or a grievance of a general nature at Step 2 of the Grievance Procedure.

7.04 ARBITRATION Where a difference arises between the parties relating to the interpretation, application or administration of this Agreement, including any question as to whether a matter is arbitrable, or where an allegation is made that this Agreement has been violated, either of the parties may, after exhausting any grievance procedure established by this Agreement, notify the other party in writing of its desire to submit the difference or allegation to Arbitration and the notices shall contain the name of the first party's suggestion for an Arbitrator. The recipient of the notice shall within five (5) days advise the other party of either their acceptance or their suggestion for an arbitrator. If the parties fail to agree upon a Chairman, the appointment shall be made by the Minister of Labour for Ontario upon the request of either party. The Arbitrator shall hear and determine the difference or allegation and shall issue a decision and the decision shall be final and binding upon the parties and upon any employee affected by it.

7.05 No person maybe appointed as an Arbitrator who has been involved in an attempt to negotiate or settle the grievance. The parties will jointly bear the expenses of the Arbitrator, if any. The proceedings of the Arbitration will be expedited by the parties hereto.

7. 06 At any stage of the grievance procedure including Arbitration, the conferring parties may have the assistance of the employee or employees concerned and any necessary witnesses, and all reasonable arrangements will be made to permit the conferring parties to have access to the plant and to view disputed operations and to confer with the necessary witnesses.

4

ARTICLE 8- DISCHARGE AND DISCIPLINARY PROCEDURES 8.01 Management shall not take disciplinary action without first warning the employee,

unless the circumstances justify immediate suspension or discharge. In the event a claim that an employee has been discharged or suspended unjustly or unreasonably, the grievance shall be filed at Step 2 of the Grievance Procedure within five ( 5) working days.

8.02 Any employee who receives a first warning shall be accompanied by his Steward or Committeeman when such warning is issued. Employees who receive a second or subsequent warning shall receive it in writing and a copy of such warning shall be delivered to the Recording Secretary of the Local Union. The Company and the Union agree that disciplinary penalties shall not be imposed unreasonably or unjustly.

8. 03 If it is determined or agreed at any step in the Grievance Procedure or decided by an Arbitrator that any employee has been disciplined or discharged unjustly, the Management shall put him back on his job with no loss of seniority and they shall pay the employee the amount he would have earned had he been working or by any other arrangement as to compensation which is just and equitable in the opinion of the parties or in the opinion of the Arbitrator if the matter is referred to such.

ARTICLE 9- SENIORITY 9.01 The parties recognize that job opportunity and security should increase in proportion

to length of service, it is therefore agreed that in all cases of vacancy, promotion, transfer, layoff, termination and rehirings after lay-off or termination, senior employees shall be entitled to preference.

In recognition, however, of the responsibility of the Management for the efficient operation of the plant, it is understood and agreed that in all such cases Management shall have the right to pass over any employee if it establishes that he does not have the ability or the physical fitness to perform the work after a reasonable trial or training period, which shall be consistent with the qualifications that are inherent in the job.

9.02 Seniority of each employee covered by this Agreement shall be established after a probation period of ninety (90) days, and shall count from date of employment. Seniority shall be maintained and accumulated during:

(a) absence due to layoff, (b) sickness or accident, (c) authorized leave of absence, (d) absence from employment while serving in Canada's armed forces.

5

9.03 An employee shall lose his seniority standing and his name shall be removed from all seniority lists for any of the following reasons:

(a) If the employee voluntarily quits. (b) If the employee is discharged for proper cause and is not reinstated in

accordance with the provisions of this Agreement. (c) If the employee is laid off and fails to return to work within ten (1 0) days

after he has been notified so to do by the Company by registered mail to his last known address.

(d) If on layoff for lack of work for a period of more than twelve (12) consecutive months of layoff for employees with less than five (5) years seniority; or more than twenty-four (24) consecutive months of layoff for employees with five (5) years or more seniority.

9.04 JOB POSTING

9.05

All vacancies for positions of more than one month's duration and newly created positions shall be posted for five ( 5) days on the special bulletin board supplied for Union purposes. An employee desiring the position must make application to management within five ( 5) days. The senior employee applying for the position shall be given the appointment, provided:

(a) That he is qualified to fill the position. (b) That he may be ruled ineligible for the appointment if he has bid for and

filled another position in the previous six (6) months.

SENIORITY LISTS The Company shall maintain a seniority list for the plant. A copy of such list shall be posted for employee inspection. A copy also shall be provided to the Union. The list shall be kept up to date.

9.06 LAYOFF (a) It is agreed that prior to any layoff there will be discussion between the

parties. The procedures outlined below may be modified by mutual agreement to compensate for any special circumstances.

(b) In a reduction of the work force and according to Section 9.01, the junior employee in the affected classification may exercise his seniority against a more junior in equally rated classification and thereafter in successively lower rated classifications.

6

(c) An employee whose seniority is such that in the case of a reduction in the work force he can displace another employee in a lower rated classification, may elect to take a layoff provided that he promptly notifies the Company and, further, such employee will only be recalled to the same job classification.

9.07 TEMPORARYTRANSFERS

9.08

If an employee substitutes in any department on any job during the temporary absence of another employee, he shall receive the rate for the job or his regular rate, whichever is the greater.

PREFERENTIAL SENIORITY In a layoff, regardless of seniority:

(a) The Union President shall be retained in his classification when work is available in it and if no work is available in his classification then,

(b) On a plant-wide basis he shall be retained in employment provided he can perform the work which is available.

Subject to the efficient operations of the plant, the Union President shall be assigned to the day shift.

ARTICLE 10- BEREAVEMENT PAY 10.01 In the case of a death in the immediate family of an employee, the Company shall

grant three (3) days leave of absence with pay. "Immediate family" shall be meant to include mother, father, mother-in-law, father-in-law, brother, sister, wife, husband, children and grandchildren.

10.02 In the case of the death of a grandparent an employee will be allowed a paid leave of absence for the day of the funeral.

ARTICLE 11- PAY FOR JURY SERVICE 11.01 The Company shall pay an employee who is required for jury service, for each day of

service, the difference between his average straight time hourly rate for the number of hours he normally works on his regular shift, and the payment he receives for jury service. The employee will present proof of service and the amount of pay received.

7

ARTICLE 12- LEAVE OF ABSENCE 12.01 (a) An employee will be allowed a thirty (30) day leave of absence without pay

for personal reasons if:

(1) he requests it from Management in writing, and (2) the leave is for a good reason and does not interfere with the

operations, except in emergency situations when leave shall be granted regardless.

(b) A leave of absence will be extended for additional thirty (30) day periods if there is a good reason and Management and Union mutually agree. The employee must request the extension in writing before his thirty (30) day leave is up.

(c) The Union will be notified of all leaves granted under this Section.

12.02 LEAVE TO ATTEND UNION CONVENTIONS An employee who has been elected or appointed by the Union to attend conventions or conferences shall be granted a leave of absence without pay for this purpose. The Union will inform the Company of the names of the delegates.

Any leave of absence will be in writing and no such leave will affect any employee's seniority rights when used for the purpose granted.

ARTICLE 13- SAFETY AND HEALTH 13.01 The Company and Union agree that they mutually desire to maintain a high standard

of safety and health in the plant in order to prevent industrial injury and illness.

13.02 The Company shall furnish equipment and supplies necessary to protect employees from injury. The Union will assist the Management in carrying out any reasonable accident prevention program.

13.03 The Company and the Union agree to name a Safety and Health Committee comprising an equal number of Company and Union representatives. The Committee's function will be to promote safety and industrial hygiene in the plant. It shall make monthly inspections of the plant and equipment and hold regular monthly meetings.

In the event that the Company representatives are unavailable to make the monthly inspections, the Union certified members or their delegates will conduct an inspection and will submit a report to the joint committee of their findings.

8

13.04 The Union recognizes and the Company accepts the responsibility to make adequate and reasonable provisions for the safety and health ofthe employees during the hours of their employment.

13.05 The Union shall be notified immediately of each accident or injury. Upon the request of the Union, the Safety Committee shall investigate and report as soon as possible on the nature and causes of the accident or injury.

13.06 The Company agrees to provide and pay up to $125.00 per year to each employee towards the cost of (green patch or approved equivalent) safety boots.

13.07 The parties recognize the current legislation which allows the right to participate, the right to know and the right to refuse unsafe work.

It is agreed that these rights will continue to be recognized as per the current methods (unless otherwise mutually agreed) even if the current legislation is changed.

ARTICLE 14- PAY ON DAY OF INJURY 14.01 An employee hurt in an industrial accident shall be paid for the time lost on day of

injury and any subsequent days until covered by Workplace Safety and Insurance Board benefits, on the day he was injured at his regular daily earnings including any overtime premium and applicable shift differential.

Payment for any such subsequent days waiting period will be paid at W.S.I.B. rate.

14.02 The Company shall provide transportation and pay for the time spent by employees during their regular shift hours for medical treatment required as a result of an industrial accident or disease.

14.03 It is not the intent of the above provisions to make the Company responsible for the payment of such time and transportation as is compensated by the Workplace Safety and Insurance Board.

14.04 The employer agrees to provide any return to the work plan or any other prescribed information and/or correspondence between the employer and the W.S.I.B. regarding the employee=s W.S.I.B. claim to both the Union and the injured employee.

14.05 The parties agree to discuss and make every effort to help employees return to work who may need some accommodation due to their illness or injury.

9

ARTICLE 15- BULLETIN BOARDS 15.01 The Company agrees to provide the Union with bulletin boards in the plant for the

purpose of posting Union notices and official papers. Notices will be posted only by officers of the Union and will be in keeping with the spirit and intent of this Agreement.

ARTICLE 16- UNION REPRESENTATIVES 16.01 If an authorized Union Representative, who is not employed by the Company, wants

to speak to Local Union representatives in the plant about a grievance or other official union business, he shall advise the Personnel Office which shall then call the Local Union representatives to the office where they may confer privately. These talks will be arranged so that they will not needlessly interfere with production.

ARTICLE 17- COMMITTEEMEN AND STEWARDS 17.01 Grievance committeemen and shop stewards shall be designated in writing by the

Union to Management. There shall be one steward for the Fabricating Shop and one steward for the Machine Shop if required. Stewards and committeemen shall not lose pay for time spent during regular working hours attending scheduled grievance meetings.

17.02 The Company will recognize the Negotiating Committee oftwo (2) employees, one of them will be the Local president and the other will be an elected officer of the Local.

17.03 The members of the Negotiating Committee shall not lose pay for time spent during regular working hours while attending meetings with the Company.

ARTICLE 18- HOURS OF WORK 18.01 The standard hours of work will be forty ( 40) hours per week, eight (8) hours per day,

Monday through Friday inclusive.

18.01 (B)

18.02

18.03

Unless otherwise agreed, the shop will work. Monday to Friday 7:00a.m. to 3:30p.m.

The employer does not guarantee the above standard hours ofwork, but before any changes are made in the present schedule there will be prior notice to and discussion with the Union. Such changes shall be by mutual consent.

In the event that it is necessary to change the regular scheduled shift hours of any employee, the change shall be arranged so as to provide such employee with 40 hours straight time work.

10

'

ARTICLE 19- OVERTIME 19.01 An employee shall receive premium overtime pay of:

(a) Time and one-half his straight time hourly rate for all hours he is required to work over eight (8) per day, Monday to Friday inclusive.

(b) Two times his regular straight time hourly rate for all hours he is required to work over twelve (12) per day, Monday to Friday inclusive.

(c) Time and one-half his straight time hourly rate for all hours worked up to eight (8) hours on Saturday and two times his straight time hourly rate for all hours worked over eight (8) on Saturdays and for all hours worked on Sundays.

19.02 Hours worked or paid for or credited shall be counted only once in determining whether an employee is entitled to overtime.

19.03

19.04

19.05

19.06

19.07

(a) Opportunities for overtime will be distributed by the Company as equally as is possible among employees normally performing the work.

(b) The foreman will maintain a list of overtime assignments which shall be posted on the bulletin board every two (2) months.

Employees who are assigned to overtime which extends more than three hours beyond their regular quitting time will be provided with a meal and an appropriate eating period. The cost ofthe meal shall not exceed $4.00.

Notice of overtime assignments will be given four (4) hours in advance of the completion of the regular shift. This may not apply in emergencies but in such case the employee shall not be charged with the overtime hours.

Employees working overtime two (2) hours or more per day will have an option to bank overtime hours up to forty ( 40) regular hours per year, and will get paid according to the applicable premium rate, after notifying the Company of such election, and by mutual agreement between November 1st and May 31st take one (1) week off from work and use the cumulated overtime hours.

The provisions of 19.01 and 19.06 inclusive apply to all normal production work, however, it is agreed that an employee may be asked to work an extra four ( 4) hours per week at straight time to perform maintenance work.

This time would be strictly on a voluntary basis and a refusal to work will not be counted or held against the employee.

11

'

ARTICLE 20- REST AND WASH-UP PERIODS 20.01 In each standard day there shall be:

(a) a 15 minute paid rest break in the A.M. (b) a 112 hour unpaid lunch break. (c) a 10 minute paid rest break in the P.M. (d) a 5 minute wash up at the end ofthe shift.

ARTICLE 21 -SHIFT PREMIUM 21.01 An employee shall receive a premium of:

(a) 40 cents per hour for each hour worked on a shift commencing between 12 noon and 8:00p.m.

(b) 45 cents per hour for each hour worked on a shift commencing between 8:01 p.m. and 6:00 a.m.

ARTICLE 22- REPORTING FOR WORK

22.01 An employee who reports for work at his regular starting time shall be granted four (4) hours of work at his regular rate of pay, and if the Company has no work for him four (4) hours pay, provided that this shall not apply:

(a) when he has been notified not to report.

(b) where lack of work is due to circumstances beyond the Company's reasonable control;

(c) in the case of an employee returning to work after an absence if the employee has not notified the Company of his intention to return to work.

ARTICLE 23- EMERGENCY CALL-OUT PAY 23.01 (a) An employee who has already left the premises of the Company after

completion of his scheduled shift and who is recalled for emergency work shall be paid double his regular straight time hourly rate for all hours worked on recall up to the starting time of his scheduled shift, but in any event not less than two (2) hours double time.

(b) In the event that call-out as referred to in (a) above takes place between midnight and the starting time of his regular shift he shall be paid at two and one-half (2 1/2) times his regular straight time rate.

12

ARTICLE 24- PAID HOLIDAYS 24.01 The following shall be considered as paid holidays:

24.02

24.03

24.04

24.05

24.06

24.07

New Year's Day Good Friday Victoria Day Canada Day 2 Floating Holidays Civic Holiday

Labour Day Thanksgiving Day Christmas Day Boxing Day Half Day before Christmas

Half Day before New Year's Day

In the event the government legislates Heritage Day then one floater will revert back and be observed as "Heritage Day".

If any of these holidays all on a Saturday or Sunday, the following Monday will be observed as the holiday, except that the parties to this agreement may, by mutual agreement, select another day on which to observe the holiday.

Each employee shall receive his regular rate of pay for eight (8) hours for each ofthe above-named holidays.

An employee required to work on any of the above-named holidays shall be paid at the rate of two times his regular straight time hourly rate in addition to his holiday pay.

In order to qualify for payment of the above holidays, the employee must work his scheduled shift immediately preceding and succeeding the holiday; exceptions to this being absence due to vacation, death in the immediate family, illness, jury duty, approved leave of absence or lay-off not exceeding two (2) weeks prior to the holiday.

In the event that one or more of the above-named paid holidays occurs during the employee's vacation, he shall be paid for the holiday in addition to his vacation pay.

In respect to the floating holiday, it may be taken at a time that is mutually satisfactory to the Union or employee and the Company. No more than two (2) employees will be permitted to take the same day unless agreed to by the Union and the Company and no employee shall qualify for the floating holiday until he has completed ninety (90) days of employment.

Such floating holiday must be observed within the year that it falls due.

13

ARTICLE 25- VACATIONS 25.01 Each employee shall be entitled to an annual vacation with pay in accordance with

the employee's length of service as provided in this Collective Agreement.

25.02

25.03

25.04

25.05

25.06

25.07 (a)

25.07(b)

25.08

An employee who has less than one year of service as ofMay 1st in each year shall be entitled to one-half day of vacation for each month of service. Vacation pay shall be four per cent (4%) of the employee's gross earnings for the previous year ending April 30th.

An employee who at May 1st in each year has completed one (1) year or more of service shall be entitled to two (2) weeks of vacation with pay. Vacation pay shall be four per cent (4%) of the employee's gross earnings for the previous year ending April 30th or eighty times his regular hourly rate, whichever is the greater.

An employee who at May 1st in each year has completed five (5) years of employment shall be entitled to three weeks vacation with pay. Vacation pay shall be six per cent ( 6%) of the employee's gross earnings for the previous year ending April 30th, or one hundred and twenty times his regular hourly rate, whichever is greater.

An employee who at May 1st in each year has completed twelve (12) years of employment shall be entitled to four ( 4) weeks vacation with pay. Vacation pay shall be eight per cent (8%) of the employee's gross earnings for the previous year ending April 30th or one hundred and sixty hours pay, whichever is the greater.

An employee who at May 1st in each year has completed fifteen (15) years of employment shall be entitled to five (5) weeks vacation with pay. Vacation pay shall be ten per cent (10%) of the employee's gross earnings for the previous year ending April 30th or two hundred hours pay, whichever is greater.

An employee who will be on lay-off for three (3) months or more in any vacation year, will receive vacation pay only according to the negotiated percentages ( 4%, 6%, 8%, 10%).

Vacation payment will be affected by taking unpaid personal leave of absence in excess of four weeks, but will not be affected by parental leave.

An employee who is entitled to an annual vacation with pay as provided in this Collective Agreement, may be designated a part of his vacation entitlement up to but not more than one week (5 working days) by mutual agreement.

14

'

ARTICLE 26 - BENEFITS 26.01 The Company agrees to pay the full premium cost of:

(a) Ontario Health Insurance Plan (b) Desjardins Financial Extended Health Care Insurance and Long Term

Disability Plan Weekly Indemnity up to E.I. maximum

In respect to item 26.01 (b), the details of such plan are contained in a booklet prepared by the carrier, a copy of which is supplied to each employee upon the completion of his probationary period. A summary of the items is contained in Appendix "B" of this Agreement.

26.02 The Company will provide prescription safety lenses to each employee who is required to wear prescription glasses. This requirement shall not exceed one pair per year.

If damaged and replacement lenses are needed before the one year has elapsed, the Company will reimburse one-half(l/2) the cost ofthe new lenses.

The Company will supply standard safety frames if required.

ARTICLE 27- WAGES AND COST-OF-LIVING ALLOWANCE

27.01

THE COST-OF-LIVING ALLOWANCE WILL BE FROZEN FOR THE DURATION OF THIS AGREEMENT

(a) The parties to this Agreement have agreed that effective January 1, 2007, the current COLA and 40 cents per hour shall be added to all existing hourly rates which shall produce the rates of pay set out in Appendix "A". The cost­of-living allowance will continue as per (c) below.

(b) The parties to this Agreement agree that effective January 1, 2008, any accumulated cost-of-living allowance will be added to the hourly rates and there shall then be applied a 35 cents wage increase to all jobs in Appendix "A", and a continuation ofthe cost-of-living allowance as per (c) below.

(c) (1) The "Consumer Price Index" refers to the "Consumer Price Index­Canada", all items (1992=100) published by Statistics Canada.

(2) "Consumer Price Index Base" refers to the Consumer Price Index for the month of December 2006 as published in the month of January 2007.

15

27.02

(3) Change in the Consumer Price Index is defined as the difference between (i) the Consumer Price Index Base and (ii) the Consumer Price Index published in the month next preceding the month in which the applicable adjustment date falls.

(4) Cost-of-living adjustment is calculated as below and will be payable for the three (3) month period commencing with the adjustment date.

(5) Effective on each adjustment date, a cost-of-living adjustment equal to one cent (1 cent) per hour for each full .5 of a point change in the C.P.I. shall be payable for all hours worked, but not a premium rate, before the next adjustment date.

(6) During the years 2007 and 2008 the cost-of-living adjustment shall be continued according to item 5 above with a maximum adjustment of 254 each year except that this maximum shall be removed and restarted at that point if the cost-of-living adjustment increases by over 11% during 2007 and 2008.

Should the Consumer Price Index in its present form and on the same basis as the Consumer Price Index Base referred to above becomes unavailable, the parties shall attempt to adjust this section or, if agreement is not reached, request Statistics Canada to provide the appropriate conversion or adjustment which shall be applicable as of the appropriate adjustment date and thereafter.

If the Consumer Price Index declines the adjustment payments will be adjusted downward on the same basis as it has been increased.

(a) Ifthe Company changes the rate or rates for a job because of a change in job content, or establishes a new job, the Company shall set the new rate or rates and shall promptly notify the Union in writing of the particulars.

(b) After a trial period ofthirty (30) days, the Union may within sixty ( 60) days of the notice from the Company, notify the Company in writing that they wish to negotiate.

(c) If the parties do not agree in negotiations, the matter may be referred to arbitration in accordance with Section 7.04 subject to the following: (i) The Chairman shall be a person who is technically competent to deal

with the matter. (ii) There shall be no award for a changed rate or rates where the change

is less than enough to move to another established rate or range of rates, but such changes shall be recorded and when an accumulation of such changes satisfy the requirements of this subsection 27.02 (c)

(iii) The Arbitrator in making an award shall use no criteria other than the classifications and rates in Appendix "A".

16

'

27.03

27.04

(d) Any changed rate or rates for a new job shall be added to Appendix "A" and shall be effective on the date of the change in job content or the establishment ofthe new job.

If an employee is temporarily transferred from his regular classification

(a) to a higher rated classification, he shall receive the rate for the higher rated classification after working in it for four (4) hours;

(b) to a lower rated classification, he shall receive the rate for his regular classification except when

(i) the transfer was at the employee's request, or (ii) the transfer was made under Article 9.

In cases (i) and (ii) above, the employee shall receive the rate of the lower rated classification on transfer to it.

From time to time, as the parties to this Agreement consider appropriate, the Union Committee shall meet with the Company for the purpose of considering the reclassification of all job classes listed under Appendix "A".

ARTICLE 28 - PENSION 28.01 The parties to this Agreement agree that a contributory pension plan established

January 1, 1982 shall be part of this Agreement and neither party shall make any changes or amendments during the life of this Agreement.

28.02

28.03

28.04

The pension plan is written in full in a separate document signed by the parties, and the summary of its terms shall appear in booklet form and will be distributed to all employees.

Enrollment in the plan is compulsory after 2 years, at which point the Company contributions start.

The Company agrees that if the Union wishes to change to a different Group RSP during the life of the Agreement it can be done, providing there is no additional requirements put on the Company.

17

ARTICLE 29- COPIES OF AGREEMENT

29.01 (a)

29.01 (b)

The Company shall supply a sufficient number ofhard copies of this agreement for each employee in the bargaining unit in booklet format to the Union within four (4) weeks of signing the agreement. The Company will pay all costs of providing the booklets, including printing costs. The Union and the Company will cooperate in the distribution of collective agreement booklets to all employees in the bargaining unit.

The Company shall provide the Union with two electronic versions of this agreement in English by four (4) weeks of signing the agreement, in both Word and PDF formats. The PDF file will be a searchable file and will include a completed signature page.

ARTICLE 30- DURATION OF AGREEMENT 30.01 This Agreement shall become effective as of April I, 2009 and shall remain in effect

until and including March 31, 2011 and shall be automatically renewed thereafter for successive periods of twelve months unless either party requests the negotiation of a new Agreement by giving written notice to the other party not less than thirty (30) calendar days and not more than ninety (90) calendar days prior to the anniversary date of this Agreement.

DATED AT ST. CATHARINES, ONTARIO

THIS }=:/ DAY OF -~--~""--1!/~,_.L __ , 2009

18

APPENDIX "A"

CLASSIFICATION RATE Aprill/09 RATE Aprill/10

Lead Hand - General $25.58 25.98

Lead Hand- Layout 25.30 25.70

Machinist 24.60 25.00

Fitter Layout 24.49 24.89

Fitter Welder 24.30 24.70

Brake and Roll 24.30 24.70

Welder "A" 24.08 24.48

Crane Operator 24.08 24.48

"E" Machine Operator 24.08 24.48

Structural Steel Plate work 21.11 21.51

Welder "B" 21.00 21.40

Machine Operator 20.85 21.25

Probationary Welder 18.96 19.36

Tacker 18.34 18.74

General Labour #1 15.49 15.89

19

APPENDIX "A" continued

1) The rate of pay for the Crane Operator shall remain as in the above schedule whether employed in or out of the shop. When working on rental jobs, the Crane Operator in addition shall be paid $2.00 per hour above his regular rate.

(2) Welders engaged in welding galvanized and preheated castings shall be paid at time and one­quarter (1 1/4) their regular rate of pay.

(3) Employees engaged in work outside the shop, but within the Niagara Peninsula, shall be allowed travel time as part of the regular scheduled hours. Overtime premium shall apply when the combination of actual working time and travel time exceeds eight (8) hours per day.

(4) When the employer is engaged on a job that requires the employees to stay overnight in another community, he will meet with the Union Committee for the purpose of establishing a working agreement.

(5) Students hired during school holidays will get paid at least the minimum wage plus 75 cents per hour.

(6) The Company will provide two (2) pair of gloves for all employees per year.

(7) The Company agrees that during the life time of this agreement, the Company will provide coveralls at no cost to the employees.

(8) Employees using their own vehicle for transportation outside the shop will get an allowance of$2.00 per day or six (6) gallons per week from the Company pump.

(9) The Company will provide two (2) pairs of regular safety glasses per year if required.

20

'

APPENDIX "B"

Life Insurance - $20,000.00

Accidental Death & Dismemberment- $20,000.00 (non-occupational)

Weekly Indemnity

Long Term Disability

Dental Plan

Healthguard Benefits for Employees and Dependents

note: In the event of non-occupational accident death, the estate receives the amount of the life insurance and the same amount under A.D.&D. This is the item in the policy referred to as double indemnity.

-Plan 1-1-4-17 Up to U.I.C. maximum

- Starts after 17 weeks of disability and pays up to age 65 so long as there is total disability based on the following formula.

66 2/3% of first $2,250.00 monthly earnings, 50% of next $3,500.00 monthly earnings, 44% of the balance to a maximum of $1,600.00/month before carve outs. Based on being disabled from performing own occupation for the first 2 years and any occupation thereafter.

- 90% ofDesjardins Financial Dental Insurance at the current year's Schedule ofFees. -Plus up to $1,000.00 per person to purchase dentures in a 5 year period for the employee and/or their spouse.

- Charges for private duty registered nurse, based on 75% of charge for such service limited to $5,000.00/year for each covered person.

Of licensed hospital including semi-private accommodation. -in Canada- no limits - out of Canada - is unlimited and for a temporary period, if elective, up to $75.00 per day and for a temporary period.

- 80% ofthe cost of all prescribed drugs and medicines, only after paying a deductible of $50.00 for a single person and $100.00 per family, per year.

21

'

-the employee will pay the dispensing fee and the Company will reimburse $7.00 regardless of the cost of this fee.

-Any difference between bills for doctors' services outside Canada and the amount payable under Medicare, the maximum being the full OMA Schedule.

-paramedical services: naturopaths, physiotherapists, speech therapists, and masseurs, as per the booklet.

-Up to $20.00 for psychotherapy and testing: $10.00 for other visits.

-Rental of wheelchair, hospital bed, crutches or iron lung.

- Ambulance service.

-Purchase (but not replacement) of artificial limbs.

-coverage of$70.00 for an eye exam every 24 months for all family members.

Benefit coverage ends on date of lay off or at the point of going on L.T.D. for people off due to sickness or accident.

Benefits will be reinstated when the person returns.

22

'

APPENDIX "C"

APPRENTICESHIP PROGRAM

BENEFITS

Paid according to the program.

In the first year the Company will pay and provide as present practice. In the second year, same as the Plant, and after two (2) years of employment, the pension program applicable to all apprentices.

If any apprentice rate starts in excess of 50% of the base rate, the Company covers only OHIP, Dental, Boots, Glasses, Coveralls, COLA and Paid Holidays.

Such apprentice will be emolled in the Pension Program after two (2) years.

23

'

APPENDIX "D"

EMPLOYEE ASSISTANCE PROGRAM AGREEMENT

I The parties to this Agreement recognize that our most important asset is people and that human problems have the potential for successful treatment when they are identified early and dealt with by a appropriate assistance resource. Alcoholism, drug abuse, physical illness, mental stress, emotional distress, financial problems or family conflict, are human problems which have a profound impact upon the lives of our members/employees, their families and job performance. The Union and the Company wish to assist employees and their families when they confront such problems. Therefore, the Company and the Union agree to establish and maintain an Employee Assistance Program designed to prevent or resolve personal, social or health problems that can become or have become work-related problems, to enable our members/employees to improve their quality of life, and to assist troubled members/employees in arranging for appropriate counselling and assistance.

II The parties agree to form a joint Employee Assistance Program (EAP) Committee forthwith, with one representative from each of the Union and the Company. The Committee is authorized to implement, administer, and monitor the EAP within the parameters of this Agreement, as follows:

1. The parties agree that any employee in the bargaining unit who participates in the EAP will do so assured that such participation will be on a confidential basis and will not be used or referred to by either party in any arbitration proceeding relating to any discipline.

2. The EAP will be administered and records will be maintained in a manner which assures and guarantees complete confidentiality.

3. The fact that an employee in the bargaining unit is participating in the EAP will not be considered by the Company for any purpose under the terms of the Collective Agreement.

4. The Company agrees that it will make every reasonable effort to facilitate an employee's participation in the EAP, including attending any counselling or treatment program to which such employee has been referred under the EAP.

5. The nature and extent of any employee's participation in the EAP, including any treatment program to which an employee is referred, is a matter for the sole determination and discretion of the employee.

24

APPENDIX "D" continued

6. It is agreed that any participants in the EAP or in any counselling or treatment program to which any employee may be referred is voluntary.

7. Referrals will be made by the Company only on the basis of documented deterioration of work related conduct and any such Company referral shall be made to the "EAP Union Counsellor".

8. Any individual may refer himself to the EAP Union Counsellor without referral by the Company.

9. The EAP Committee shall be responsible for the education and training of the EAP Union Counsellor and shall be responsible for publicizing the EAP amongst employees

10. The EAP Committee shall not discuss individual cases nor shall it have access to information regarding any individual case.

11. The EAP Union Counsellor shall participate in meetings of the EAP Committee but shall not reveal any information about any individual cases and shall maintain all records in a manner consistent with the strict confidentiality guaranteed to all participants in the EAP.

12. The EAP Committee, with the assistance of the Company, the Union and the EAP Union Counsellor, shall maintain a comprehensive list of community based resources, specialists, treatment programs and the like and the EAP Union Counsellor shall be guided by this list when making recommendations to participants for outside resources or treatment programs.

III The Company agrees to bear the costs of implementing and maintaining the EAP and the cost of paying the EAP Union Counsellor not more than three hours wages per week at a time scheduled upon the consent of the Company, the Union and the EAP.

IV Nothing in this Agreement prohibits the Company from disciplining, and the Union defending, any employee notwithstanding that such employee is participating, has participated or intends to participate in the EAP.

V The Union and the Company agree that, notwithstanding the Collective Agreement, no member of the EAP Committee and no EAP Union Counsellor shall be a compellable witness at any arbitration hearing between the Company and the Union involving any employee who is a participant in the EAP.

25

APPENDIX "D" continued

VI Both the Company and the Union must give the other thirty days notice in writing before either may withdraw from the Program in which case this Agreement is terminated upon the expiry of thirty days.

VII The Company and the Union agree that this Agreement shall form part of the Collective Agreement between the Company and the Union and is incorporated into that Agreement by Article of that Agreement which specifically refers to this Agreement.

The Company and the Union agree to the terms set forth in this Agreement.

Dated---------------·

This __ day of ___________ , 19 __ .

Colbey Custom Fabricating Co. Limited

United Steelworkers of America

26