COLLECTIVE BARGAINING AGREEMENT

BETWEEN:

NESTLE PURINA PETCARE, CALEDONIA

(hereinafter referred to as "the Employer")

OF THE FIRST PART

-and-

UNITED STEELWORKERS OF AMERICA

c:> 1'-.J BE. I-tA LF 0 F I COS O€D- -42-(hereinafter referred to as "USW" or "the Union")

OF THE SECOND PART

NOVEMBER 8, 2005- NOVEMBER 7, 2008

2

INDEX

Article Page No.

Purpose of Agreement 4

2 Scope & Recognition 4

3 Management Rights 4

4 Union Security 5

5 Plant Committee 6

6 Grievance Procedure 7

7 Union and Company Grievances 8

8 Discharge and Disciplinary Cases 8

9 Local Union Leave 9

10 Arbitration 9

11 Seniority 10

12 No Strikes or Lock Outs 12

13 Leave of Absence 12

14 Health and Safety 12

Refusal ofUnsafe Work 13

15 No Discrimination 14

16 Job Posting 14

17 Hours of Work and Overtime 15

18 Temporary Vacancies 16

19 Bulletin Board 17

20 Bargaining Unit Work 18

21 Pregnancy/Parental Leave 18

22 Wage Rates 18

23 Holidays 18

24 Vacation 19

3

25 Bereavement Leave 20

26 Jury Duty 21

27 Reporting Pay 21

28 Call In 21

29 Benefit Plans 22

Pension Plan 23

30 Duration of Agreement 24

Schedule A 25

Letter ofUnderstanding - Indian Act - Benefits 27

Letter of Understanding- Additive Technician Trainee 28

Letter of Understanding- Temperature within Plant 29

Letter of Understanding - Casual Employees 30

Letter of Understanding -Humanity Fund 31

Letter of Understanding Technological Change 32

4

ARTICLE I

PURPOSE OF AGREEMENT

1.01 The general purpose of this agreement is to establish and maintain lawful and

orderly collective bargaining relations between the Company and its employees,

to provide procedures for the prompt and equitable disposition of grievances and

to establish and maintain mutually satisfactory working conditions, hours ofwork

and wages for said employees.

ARTICLE2

SCOPE & RECOGNITION

2.01 The Company recognizes the Union as the bargaining agent of all employees of

Nestle Purina PetCare, Caledonia in the Town of Caledonia, save and except

supervisors, person above the rank of supervisor, office, clerical and sales staff.

2.02 The term "employee" or "employees" wherever hereinafter used shall mean only

those persons coming within the bargaining unit as defined above unless the

context otherwise applies.

2.03 Where the masculine pronoun is used in the Agreement it shall mean and include

the feminine pronoun where the context so requires.

2.04 In the event that the Company moves any part of its operation to a location of 80

kms or less from Caledonia, Ontario, the members of the bargaining unit will be

given preferential hiring status for the purposes of hiring into permanent

vacancies at the new location. The USW shall retain the right to represent

employees at the new location except where there is an existing collective

agreement in place at the new location.

ARTICLE 3

MANAGEMENT RIGHTS

3.01 The Union recognizes and acknowledges that the management of the plant and its

facilities and direction of the working forces are fixed exclusively in the

Employer and without limiting the generality of the foregoing the Union

acknowledges that it is the exclusive function of the Employer to:

(a) maintain order, discipline and efficiency and in connection therewith to

make, alter and enforce from time to time reasonable rules and

regulations, policies and practices to be observed by its employees,

discipline or discharge employees for just cause provided that a claim by

an employee that has been discharged or disciplined without cause may be

the subject of a grievance and dealt with as hereinafter provided;

(b) select, hire, transfer, assign to shifts, promote, demote, classify, lay off,

recall, retire employees or select employees for positions excluded from the bargaining unit;

5

(c) establish and administer tests for the purpose of assisting the Employer

in determining an employee's qualifications, and require medical

examinations;

(d) determine the location of operations, and their expansion or their

curtailment, the direction of the working forces, schedules of operations,

the number of shifts; determine the methods and processes to be

employed, job content, quality and quantity standards, the establishment

of work or job classifications; change, combine or abolish job

classifications; determine the qualifications of an employee to perform any

particular job; the nature of tools, equipment and machinery used and to

use new or improved methods, machinery and equipment, change or

discontinue existing tools, equipment, machinery, methods of processes;

decide on the number of employees needed by the Employer at any time,

the number of hours to be worked, starting and quitting times, when

overtime shall be worked and require employees to work overtime, as per

article 17.04, the determination of financial policies, including general

accounting procedures and customer relations;

(e) have the sole and exclusive jurisdiction over all operations, buildings,

machinery, equipment and employees.

3.02 The Employer agrees that it will not exercise its functions in the manner

inconsistent with the provisions of this Agreement and the express provisions of

this Agreement constitute the only limitations upon the Employer's rights.

3.03 Without limiting the generality of the foregoing provisions, it is expressly

understood and agreed that breach of any of the plant rules, or any of the

provisions of this agreement, may be cause for dismissal of an employee. The

employee shall have the right to lodge a grievance as herein provided in this

Agreement.

ARTICLE4

UNION SECURITY

4.01 (a)

(b)

(c)

4.02

It shall be a condition of employment that all employees become and remain

members ofthe Union in good standing.

All new employees shall become and remain members of the Union in good

standing upon completion of their probationary period as a condition of

employment.

While the parties have agreed that Union membership, upon completion of the

probationary period, is a condition of employment, if an employee has valid and

authentic religious objections to joining a Union, he will be exempted from this

clause. Regardless of any objection, the Rand Formula shall apply.

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.

6

4.03 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 Treasurer of the United Steelworkers of America, 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 of the Dues Remittance

Form R-115 will also be sent to the Union office designated by the Area

Coordinator.

4.04 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 in

Article 4.03 in such form as shall be directed by the Union to the

Company.

4.05 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.

4.06 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.

4.07 a) The Employer agrees to acquaint new employees with the fact that a

Union Agreement is in effect, and with the conditions of employment set

out in the articles dealing with Union Security and Dues Check-off.

b) When a new employee is hired, he will be introduced to the shop steward,

or Executive Board Member in his department when he commences work.

4.08 The Local Unit Chairperson and stewards of the Local shall have top seniority

in the event of a lay off of three (3) or more days, provided they are qualified to

perform the remaining work.

ARTICLE 5

PLANT COMMITTEE

5.01 The Company agrees to recognize two (2) stewards to be known as Shift

stewards, to represent employees in presenting and processing grievances. There

will be one (1) steward on each shift.

5.02 In addition to the two (2) stewards, there will be one (1) employee elected or appointed by the Union to be known as the Chief steward.

7

5.03 The Local Unit Chairperson, by virtue of his office, can act as steward or Chief steward in their absence.

5.04 The Grievance Committee will consist of the Local Unit Chairperson and Chief steward. This committee will meet with the Company at Step No. 2 of the Grievance Procedure.

5.05 Stewards are expected whenever possible to settle grievances on their shift without loss of working time. However, when necessary, stewards will be afforded reasonable time off from their work, to assist in the settlement of grievances and in the administration of this Agreement as may be required; provided that arrangements for such time off shall first be made with the Plant Management to avoid interference with the Plant Operation. When conferences between these representatives and the Plant Management are such that they can only be held at the Plant and during the regular working hours of such representatives, there shall be no loss of earnings to any employee for participation in such conferences. Such time off shall not be unreasonably withheld.

5.06 The Union will not engage in Union activities during working hours or hold meetings at any time on the premises of the Company without the permission of the Plant Manager or his designate.

5.07 The Unit Chairperson of the Local shall notifY the Company by letter of the names, addresses and telephone numbers of the Local Officers and stewards, and of any changes which may occur, together with the effective dates and names of those they are replacing. The Company will keep the Local informed, in writing, of all those persons with whom the Local will be dealing, together with their titles.

ARTICLE 6

GRIEVANCE PROCEDURE

6.01 The parties to this Agreement are agreed that it is of the utmost importance to adjust complaints and grievances as quickly as possible.

6.02 No grievance shall be considered where circumstances giving rise to it occurred or originated more than ten (1 0) working days before the filing of the grievance. Pay grievances will be twenty (20) working days.

6.03 The Union will submit grievance forms it proposes be used in the grievance procedure.

The grievance will be dealt with in the following manner and sequence:

8

Step No. 1: The written grievance will be presented to the Plant Manager by the Chief Steward or Shift Steward for settlement. Failing a satisfactory settlement the grievance will proceed to Step No. 2.

Step No. 2: Within five (5) full working days following the written decision under Step No. I. The grievance shall be submitted for a meeting between the Grievance Committee and the Plant Manager or his designate at which time a representative of the International Union will be in attendance. This meeting must be held within ten (I 0) full working days from the date the Company received notice requesting such meeting. The Plant Manager or his designate will give his written reply within five (5) full working days following the date on which the Union received the written reply, the matter may be taken to

arbitration, as provided in Article 10, Arbitration.

6.04 During the probationary period, an employee shall be considered as being employed on a trial basis and may be disciplined or dismissed by the Employer in its sole discretion. Probationary employees may grieve that their discipline or dismissal was not for just cause. For the purposes of this Article and Agreement, the standard for disciplining or discharging a probationary employee is as

follows:

(a) Just cause for discipline or dismissal of a probationary employee exists where the Employer's decision was not made arbitrarily or in bad faith.

ARTICLE 7

UNION AND COMPANY GRIEVANCES

7.01 Any differences arising directly between the Company, and the Union may be submitted in writing by either party beginning at Step No. 2 and the time limits provided shall apply to both parties.

7.02 All written decisions arrived at between the representatives of the Company and the representatives of the Union shall be final and binding upon the Company, and the Union, and the employee or employees concerned.

ARTICLE 8

DISCHARGE AND DISCIPLINARY CASES

8.01 A claim by an employee, that he has been unjustly discharged or suspended from his employment shall be treated as a grievance if a written statement of such grievance is lodged with the Plant Manager or his designate within ten ( 1 0) working days after the employee ceases to work for the Company. All preliminary steps of the Grievance Procedure prior to Step No. 2 will be omitted

in such case.

8.02 A discharged or suspended employee, if at work, may confer with his steward or

Local Unit Chairperson for a reasonable period of time before leaving the

9

premises of the Company. Failure to comply will not render discipline null and

void. Such special grievances may be settled under the Grievance Procedure

including arbitration by:

(a) confirming the Management's action in dismissing or suspending the

employee;

(b) reinstating the employee with or without compensation for time lost less

any amount of money or compensation he may have earned or received

while on discharge or suspension;

(c) any other arrangement deemed just.

ARTICLE 9

LOCAL UNION LEAVE

9.01 Employees who have been elected or appointed by the Union to attend a Union

Convention or other Union business shall be granted their leave. The employee

shall give the Company at least two (2) weeks notice in writing of the request and

permission by the Company shall not be unreasonably withheld. Not more than

one (1) employees may be absent on Union leave at any one time, but the

Company is prepared to accommodate two (2) approved leaves of absence

per shift subject to the needs of the business being met.

ARTICLE 10

ARBITRATION

10.01 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 party may, after exhausting any Grievance Procedure

established by this Agreement, notifY the other in writing of its desire to submit

the difference or allegation to arbitration. The notice shall be delivered to the

other party within fifteen (15) working days of the reply under Step No.2.

10.02 The Arbitrator shall be selected by the parties from the following list in rotation:

M. Picher 0. Shime R.E. McLaren Paula Knopf

In the event that the arbitrator selected by the parties is unable to act, the

particular case will be referred to the next-named Arbitrator on the list. 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.

10.03 Each ofthe parties hereto will jointly share the expenses ofthe Arbitrator, if any.

10

10.04 The Arbitrator shall not be authorized to make any decision inconsistent with

the provisions of this Agreement, nor to alter, modify or amend any part of this

Agreement.

10

ARTICLE 11

SENIORITY

11.01 Newly hired employees shall serve a probationary period of sixty (60) days

worked within a twelve (12) month period and shall have no seniority rights

during this period. Upon completion of the probationary period, a new employee

shall have his seniority dated back sixty (60) working days. During the

probationary period an employee shall be considered as being employed on a trial

basis.

11.02 Seniority shall mean an employee's length of continuous service with the

Employer on a plant wide basis. An employee shall maintain and accumulate

seniority under the following conditions:

(a) during a period when he is prevented from performing his work for the

Employer by reason of injury arising out of and in the course of his

employment for the Employer and for which he is receiving compensation

under the provisions of the Workplace Safety and Insurance Board;

(b) during the first ninety (90) days of a personal leave of absence;

(c) during any period of lay off, subject to Article 11.05 (e);

(d) during a leave of absence for Union business up to a maximum of ninety

(90) days.

11.03 The Employer will consider the skill, ability and qualifications of the employee to

perform the normal required work which is available in determining which

employee is to be laid off or recalled from lay off and provided the senior

employee possesses the skill and ability and qualifications to perform the normal

required work available, he will be the last to be laid off and conversely, the first

to be recalled from lay off. In a lay off situation, an employee may exercise his

seniority to bump a junior employee at an equal or lower job class only. This

Article will only apply provided the Employer is operating on a one shift basis.

However, when there is a two shift operation, in the event there is a layoff during

a work week those employees on the afternoon shift will be laid off for the day

following notification of layoff, after which they may exercise their seniority and

bumping rights.

11.04 Seniority lists will be supplied to the Union and posted on the bulletin board on

January I st of each year of this Agreement.

11.05 Seniority once established for an employee shall be forfeited and the employee's

employment shall be deemed to be terminated under the following conditions:

(a) if he quits;

(b) if he retires;

11.06

11.07

11.08

11.09

(c) if he is discharged for just cause and not reinstated through the

Grievance Procedure;

11

(d) if he fails to report for duty after a lay off or leave of absence in

accordance with the provisions of this Agreement;

(e) if he has been laid off for a period of eighteen (18) continuous months;

(f) if he is absent from work for more than two (2) consecutively scheduled

working days without notifYing the plant manager and giving a justifiable

reason;

(g) if he is absent from work for more than two (2) consecutively scheduled

working days without a reasonable excuse for the period of absence.

When recalling an employee after lay off, he shall be notified by registered mail

or telegram and allowed five (5) working days from the date of the notice to

report for work and, in the meantime, if an employee is recalled and is not

immediately available for work, other employees in seniority standing may be

recalled but will be temporarily employed until the senior employee reports

within the five (5) working day period as outlined. An employee to whom a

registered letter or telegram is sent in accordance with this Article must contact

the Employer within two (2) working days of receipt of the notice of return to

work if he wishes the Employer to hold the job open for him for the full two (2)

working day period. It shall be the employee's responsibility to keep the

Employer notified as to any change of his address or telephone number so that

they will be up to date at all times.

Employees promoted to supervisory positions or positions not covered by this

Agreement will retain their seniority after promotion and if transferred back into

the bargaining unit the time served in such position shall be included in their

seniority standing, up to a maximum of twelve (12) months, unless otherwise

mutually agreed.

Any employees' return to work after sick leave will be conditional on his

supplying, when requested, a certificate from a physician that he is fully

recovered from the sickness which caused his absence and is capable of

performing his regular duties. Before returning to work, the employee must give

notice to the Employer of twenty-four (24) hours if away from work less than one

(I) week, two (2) days if away more than one (1) week. When a doctor's or

physician's note or certificate is requested in accordance with this Article, the

Employer agrees to pay the doctor or physician for the note or certificate

submitted to the Employer.

Doctors' notes will only be required when the employee exceeds five (5)

occurrences of absence in one (1) calendar year or Weekly Indemnity is applied

for.

12

ARTICLE 12

NO STRIKES OR LOCK OUTS

12.01 In view of the orderly procedure established by this Agreement for the settling of

disputes and the handling of grievances, the Union agrees that, during the lifetime

of this Agreement, there will be no strike, picketing, slowdown or stoppage of or

interference with work or production, either complete or partial, and the

Employer agrees that there will be no lock-out of employees. The Local and

Union agree that if any such collective action takes place, they will repudiate it

forthwith and require their members to return to work.

ARTICLE 13

LEAVE OF ABSENCE

13.01 The Employer may grant a leave of absence of up to one (1) month without pay to

employees for legitimate personal reasons. The employee must renew such a

leave of absence at the end of each one ( 1) month period. Leave of absence shall

not be granted to an employee for the purpose of working elsewhere.

13.02 Any leave of absence granted by the Employer shall be in writing and shall set

out the length of leave of absence granted, the purpose of the leave and the terms,

if any, on which it is granted.

ARTICLE 14

HEALTH AND SAFETY

14.01

14.02 (a)

The Employer and the Union agree that they mutually desire to maintain high

standards of safety and health in the workplace in order to prevent injury and

illness.

A Joint Health and Safety Committee (hereinafter referred to as ''the Committee")

shall be established which is composed of an equal number of Union and

Company representatives, with a minimum of four (4) members. "The

Committee" shall be co-chaired by one (1) Union representative and one (1)

Company representative. "The Committee" shall hold meetings at least once per

month, or more frequently if requested by the Union or by the Company, to

jointly review; workplace accidents, their causes and recommendations to prevent

their recurrence; monitoring; inspecting; investigating; reviewing and improving

health, safety and environment conditions and practices, any other matters seemed

appropriate by the members of "the Committee". Minutes of all meetings shall be

taken by both the Company and the Union representatives on a rotating basis and

jointly approved copies shall be provided to both the Company and the Union

within five (5) working days. The minutes shall indicate what action has been

(b)

14.03

taken with respect to suggestions or recommendations previously made, and if

no action has been taken, the reasons therefore shall be given.

13

The Employer will continue to pay for a member of the bargaining unit to

become and remain qualified as the "certified member".

Each calendar year, the Company will reimburse full time employees, who have

completed their probationary period, for safety footwear as follows:

Up to eighty-five ($85.00) dollars per employee in the first year of the Collective

Agreement upon submission of an original receipt from an approved retail outlet

and

Up to ninety ($90.00) dollars per employee in the second and third years of the

Collective Agreement upon submission of an original receipt from an approved

retail outlet.

Each calendar year, the Company will reimburse Forklift drivers, who have completed their probationary period, for winter clothing as follows:

Up to eighty ($80.00) dollars per employee in the first year of the Collective Agreement upon submission of an original receipt from an approved retail outlet

and

Up to eighty-five ($85.00) dollars per employee in the second and third years of the Collective Agreement upon submission of an original receipt from an approved retail outlet.

REFUSAL OF UNSAFE WORK

14.04 (a) Notwithstanding the provisions of "the Act", an employee may refused to work or

do particular work where the employee has reason to believe that:

(i) any equipment, machine, device or thing the employee is to use or operate

is likely to endanger themself or another employee, or

(ii) the physical condition of the work place of the part thereof in which the

employee works or is to work is likely to endanger themself or another

employee, or

(iii) any substance, material, agent or chemical the employee is to use is likely

to endanger themself or another employee, or

(iv) any equipment, machine, device or thing the employee is to use or operate

or the physical condition of the workplace of the part thereof in which the

employee is to work is in contravention of: "the Act" or its regulations

and such contravention is likely to endanger themself or another

employee.

14

(b) If as set down in Article 14.04 (i), (ii), (iii), (iv), an employee refused to work or do particular work, the employee shall promptly report the circumstance of their refusal to their supervisor, who shall forthwith investigate the report with the employee and a member representing workers on "the Committee".

(c) Following the investigation in Article 14.04 (b) and any steps taken to deal with the circumstances that caused the employee to refuse to work or do particular work, if the employee continued to have reasonable grounds to believe that carrying out the work would endanger themself or another employee, then an inspector from either the Ministry of Labour or the Ministry of Environment, as appropriate, shall investigate the refusal to work and shall give a decision in writing as soon as possible.

(d) Pending the outcome ofthe investigation in Article 14.04 (c) above, the employee shall be found reasonable alternative work until such time that the job has been made safe or determined to be safe to work on.

(e) Pending the outcome of the investigation in either Article 14.04 (c) above and the decision of the "Certified Member" and/or the Inspector, no employee shall be assigned to use or operate the equipment, machine, device or thing or to work in the workplace or the part thereof or to work with any substance, material, agent or chemical which is being investigated until the job in question has been deemed safe to operate thereof or to work with any substance, material, agent or chemical which is being investigated until the job in question has been deemed safe to operate by the "Certified Member" or by an Inspector.

ARTICLE 15

NO DISCRIMINATION

15.01 There shall be no discrimination by the Employer or the Union or its members against any employee, because of grounds as defined by the Ontario Human Rights Code.

ARTICLE 16

JOB POSTING

16.01 When a new job classification is permanently created or additional employees are permanently required in an existing job classification, the Employer will post a notice of the vacancy for a period of five (5) working days on the Plant bulletin board. The notice will specifY the nature of the job, the shift, qualifications required and the rate of pay. An employee who wishes to be considered for the position so posted shall signifY his desire by making written application to the

person designated on the posting within the five (5) working day posting period

aforesaid. A copy of each posting shall be given to the Union.

15

16.02 In filling any posted vacancy in the skilled and semi-skilled classifications under

this Article, the Employer will consider the requirements of the operations and the

skill, ability, and the qualifications of the individual to perform the normal

required work and, where these are relatively equal, seniority shall govern.

In filling any posted vacancy in unskilled classifications under this Article,

seniority shall govern.

If no acceptable applications are received, the Employer reserves the right to hire.

Refer to Schedule A for listings of skilled, semi-skilled and unskilled

classifications.

16.03 If the successful applicant, during the first thirty (30) days of the new assignment,

fails to satisfactorily perform the job within the said period or desires to return to

his former position, he shall be returned to his former position without loss of

seniority. During the thirty (30) day period if an employee is removed from the

job he was awarded, the Employer will advise the employee in writing of the

reasons why he is being removed and being returned to his former position.

16.04 The name of the successful applicant will be posted immediately on the bulletin

board. A copy of each successful applicant's posting shall be given to the Union.

16.05 Where an applicant does not receive the position applied for, upon request to

management, he will be given reasons in writing why his application was refused.

16.06 A successful candidate for a maintenance position will be paid a rate of pay

between the start rate and the end rate depending upon his experience, provided

the employee is not paid less than his former rate of pay.

ARTICLE 17

HOURS OF WORK AND OVERTIME

17.01 (a) A normal work day shall be eight (8) hours per day including a half (112) hour

paid lunch. This does not constitute a guarantee ofhours per day.

(b) The normal work week shall be forty ( 40) hours per week. This does not

constitute a guarantee as to hours of work per week.

17.02

17.03

17.04 (a)

(b)

17.05

17.06

17.07 (a)

(b)

16

A rest period often (1 0) minutes will be granted during each half (1/2) shift.

Work which is authorized in excess of forty (40) hours per week will be paid at

the rate of one and one-half (1 112) times the employee's regular hourly rate of

pay.

The Employer may schedule hours of work in excess of those referred to in this

agreement and require employees to work such hours. The Employer agrees to

seek volunteers to perform work from among those employees qualified to

perform the work. In the event that insufficient volunteers are available, the

Employer shall assign overtime work to the most junior employees first, who are

qualified to perform the required work.

The Employer shall distribute the opportunity to work overtime as equally as

practicable among those employees qualified to perform the work within the

classification. The Employer shall attempt to equalize the overtime over the

calendar year.

There shall be no duplicating or pyramiding of overtime hours.

In order to qualify for overtime pay, the employee must have worked his normal

work week. Work performed in excess of the employee's normal workday and

work performed on a Saturday will be paid at time and one-half unless the

employee has missed a day during the week without a justifiable absence. In the

event the employee does not have a justifiable reason for his absence, then the

work performed will be paid at straight time. Work performed on a Sunday will

be paid at two times if Sunday is the seventh (7th) consecutive day worked by the

employee, otherwise it will be paid at time and one-half, subject to the employee

completing his normal work week and to the provisions of this article.

Any changes in hours of work or changes in schedules will be discussed with the

Union before any changes are made. This article does not apply to the scheduling

of overtime.

Subject to business conditions, the Employer may offer a summer hours program

to its' employees. In any given year, if the Company determines that a summer

hours program is feasible, it will advise the Union by April 15th of that year. At

that time, the hours of work will be discussed with the Union before any changes

are made.

ARTICLE 18

TEMPORARY VACANCIES

18.01 A temporary transfer is a transfer initiated by the Company to fill a vacancy of a

duration of thirty (30) calendar days, or for a longer term if agreed to by the

parties to this Agreement.

•

18.02

(a)

(b)

18.03

18.04

17

Any employee who, for the convenience of the Company, is temporarily transferred to another job in which the rate of pay is different from that in effect in such employee's regular job, shall be paid, while so employed as follows:

If the rate of pay in the job to which he is transferred is less than the employee's

regular pay he shall receive his own regular rate of pay;

If the rate of pay in the job to which he is transferred is higher than the employee's regular pay, he shall receive the higher rate of pay of the job to which he is temporarily transferred.

Employees transferred under this Article, if any rate change is required, shall receive the higher rate after working on the job for fifteen (15) minutes.

A temporary vacancy of thirty (30) days or less shall be filled by the senior

employee available provided the senior employee possesses the skill, ability and qualifications to perform the required work. If the vacancy will exceed thirty (30) days, it will be posted in accordance with Article 16.

ARTICLE 19

BULLETIN BOARDS

19.01 The Company will provide for the use of the Union a bulletin board in this Plant which shall be restricted to the posting thereof of:

1) Notices of Union recreation and social affairs;

2) Notices of Union elections, appointments and results of elections;

3) Notices of Union meetings;

4) Notices concerning Company policy affecting the said Union. This bulletin board shall be locked and a key provided for the Company and the Union.

19.02 Such Notices must be approved by the Employer prior to their being posted and such approval will not be unreasonably withheld.

18

ARTICLE 20

BARGAINING UNIT WORK

20.01 Management may perform bargaining unit work provided it does not result in a

lay off of a bargaining unit employee or the extension of a lay off of a bargaining

unit employee. In the event that during a regular shift or an overtime shift, the

shift is short-handed, a bargaining unit member will be assigned to a higher

paying job and a supervisor will be allowed to perform work in a lower paying

job.

ARTICLE 21

PREGNANCY~ARENTALLEAVE

21.01 Employees shall receive a pregnancy or parental leave without pay in accordance

with the provisions of the Employment Standards Act.

ARTICLE22

WAGE RATES

22.01 Job classifications and wage rates are set out in Schedule "A" to this Agreement.

ARTICLE23

HOLIDAYS

23.01 Subject to Article 23.02, employees will receive the following holidays with pay:

New Year's Good Friday Victoria Day Christmas Boxing Day

Labour Day Thanksgiving Christmas Eve Canada Day Civic Day

23.02 Employees shall be eligible to be paid their normal hourly rate of pay up to a

maximum of eight (8) hours for a holiday noted above, provided they:

(a) have been in the employ of the Employer for three (3) months;

(b) work the scheduled shift immediately prior to the holiday and the first

scheduled shift after the holiday, unless they have received prior written

permission to be absent for one of the qualifYing days;

(c) have worked and earned wages on at least twelve (12) days during the four

(4) work weeks immediately preceding the holiday.

23.03 If a holiday falls on a Saturday or Sunday, the Employer will designate whether

the holiday will be observed on the prior Friday or the following Monday.

19

23.04 Time worked on a holiday shall be compensated at a rate of one and one-half (1

1/2) the employee's regular hourly rate of pay in addition to the holiday pay if the

employee qualifies for that holiday pay under Article 23.02. There shall be no

duplicating or pyramiding of premium pay for overtime worked and hours worked

on a holiday.

23.05 If one of these holidays falls within an employee's vacation time, the employee is

entitled to an additional vacation day, or if mutually agreed an extra day's pay.

Its date is to be agreed upon before hand by the employee and the Employer.

ARTICLE24

VACATION

24.01 The date for determining vacation entitlement in each year shall be May 31. The

employee must then take his vacation entitlement during the period of June 1 to

May 31. Employees will be allowed to work their weeks of scheduled vacation if

they choose to do so.

24.02 Employees will be entitled to vacation according to the following schedule:

wages

Continuous Service on May 31

Less than one ( 1) year's service

One (1) year's

service

Six (6) years' service

Ten (1 0) years' service

Twenty (20) years' service

Vacation Period

1 day for each month of service (max. 10 days)

2 weeks

3 weeks

4 weeks

5 weeks

Remuneration

4% oftotal wages earned

4% of total

earned

6% oftotal wages earned

8% of total wages earned

10% of total wages earned

24.03 For the purposes of this Article, "total wages" means wages paid for hours

actually worked and vacation pay paid during the previous year, June 1 to May

31.

24.04 Employees must take their vacation entitlement or pay in lieu thereof in the year it

becomes due and shall not be entitled to carry over vacation time from year to

year.

24.05

24.06

24.07

20

Vacation must be taken at such times as are approved by the Employer having

regard to the need to maintain efficient operation. Vacation choice is granted in

order oflength of service. It is agreed that not more than one (1) person per shift

per job class shall be allowed to take vacation at the same time with a maximum

of two (2) people per shift at the same time. Should the Company decide to shut

down the entire plant, or certain sectors of the plant during the vacation period,

employees can be required to take part of their vacation or their entire vacation

(up to a maximum of two (2) weeks) during the closure period. Employees shall

be able to draw vacation pay owed a maximum of two (2) times per year. The

Company will endeavour to accommodate vacation requests subject to

operational requirements being met.

Employees shall submit their request for vacation in writing prior to April 1 for

the calendar year in which the vacation is due.

When vacation is taken as time off work, the Employer will issue a separate

cheque to the employee for the vacation pay. This will not apply to withdrawal

by the employee from the vacation accrual account.

ARTICLE 25

BEREAVEMENT LEAVE

25.01 An employee will be granted leave of absence, without loss of pay, in order to

attend the funeral, unless it is unreasonable to expect the employee to attend the

funeral given its location, of members of his family for up to the maximum of

days set forth in the following schedule:

25.02

(a) up to five (5) days in the event of the death of the employee's spouse,

child or legally adopted child;

(b) up to three (3) days in the event of the death of the employee's father,

mother, brother or sister, father-in-law, mother-in-law, brother-in-law,

sister-in-law, son-in-law or daughter-in-law;

(c) one (1) day for funeral in the event of the death ofthe employee's

grandparents, grandchildren or spouse's grandparents;

(d) payment will be made for only that portion of the allotted time which falls

within the employee's regular scheduled work week. During vacation

where an employee's scheduled vacation is interrupted due to

bereavement, the employee shall be entitled to bereavement leave. The

portion of the employee's vacation, which is deemed to be bereavement

leave, will not be counted against the employee's vacation credits or

holidays.

In order to be eligible for pay, for the above-noted bereavement leave, the

employee must submit proof of death.

21

ARTICLE 26

JURY DUTY

26.01 An employee who is selected for service as a juror or subpoenaed as a crown

witness will be compensated for loss of pay from the employee's regularly

scheduled hours at the employee's regular hourly rate less the fee received for

services as a juror. However, after the employee has completed jury duties, the

employee is required to return to the Employer's premises to complete the

employee's remaining normally scheduled work day.

ARTICLE27

REPORTING PAY

27.01 Unless employees are notified not to report for work, employees who report for

work at their regular starting time and for whom no work is available, shall

receive not less than four ( 4) hours of any work that is available at their normal

rate of pay, or if no work is available shall receive four (4) hours' pay at their

straight time hourly rate. This provision shall not apply if the failure to provide

work is caused by reason of a strike or other work stoppage, fire, flood, snow

storm, power failure, or other like cause beyond the control of the Employer.

ARTICLE28

CALL IN

28.01 An employee who has completed his shift and left the Company's premises and is

then recalled to work extra time shall be paid time and one half (1 112) and will

receive not less than the equivalent of four (4) hours pay at the employee's

regular rate of pay for such additional work. This shall not apply where the

employee is called in and continues to work into his next scheduled shift or where

the employee is asked to continue to work following his scheduled shift.

22

ARTICLE29

BENEFIT PLANS

29.01 The Employer agrees to pay the premium in accordance with Article 29.05, for existing health and welfare plans as listed below, during the life of this Agreement in accordance with the terms of the plan(s) for each non-probationary employee. All the benefits are described more particularly in the plans for Extended Health Care, AD&D, Dental Plan, Basic Life Insurance, Long Term Disability.

29.02

29.03

29.04

The Employer agrees to increase vision care coverage to:

• First year of the collective agreement $175.00

• Second year of the collective agreement $200.00

• Third year of the collective agreement $225.00

payable once every two years.

The Employer shall provide a drug card.

The Employer agrees to update and maintain Ontario Dental Association fee schedule to current Ontario Dental Association fee schedule.

Short Term Disability amount will be equal to 66.67% of weekly earnings to a maximum of:

$440.00 per week in the first year (Nov 8, 2003 Nov 7, 2004) of the Collective Agreement

$450.00 per week in the second year (Nov 8, 2004- Nov 7, 2005) of the Collective Agreement

The Employer's obligation is restricted to the payment of premiums. Employees should refer to the plan documents to identify the limitations and exclusions of the various plans. Any dispute over payment of benefits under any such plan or policy shall be adjusted between the employee and the insurer concerned.

In order to continue coverage under the plans, employees on a leave of absence must pay to the Employer the equivalent of the total benefit premiums for the duration ofthe leave.

The Employer shall only be required to remit the premium payments referred to above for employees who are not actively at work for the month following the month in which the absence occurs, excluding employees on a pregnancy/parental leave who shall be covered by the Employment Standards Act.

29.05 The Employer agrees to pay the above-noted premium in accordance with the following schedule:

(a) Premium cost- After three (3) months of employment

70% Employer contribution 30% Employee contribution

(b) Premium cost- After two (2) years of employment

80% Employer contribution 20% Employee contribution

(c) Premium cost- After three (3) years of employment

100% Employer Paid

23

PENSION PLAN

29.06 (a)

29.06 (b)

29.06 (c)

The Employer shall allow the employees covered by this Collective Agreement to enrol and be covered by the Employer's Pension Plan. Ifthe employee enrols, the Plan shall provide a monthly Pension for a defined benefit as follows:

As of November st\ 2005 the Plan shall provide a monthly Pension for a defined benefit of Twenty Dollars and Twenty-Five Cents ($20.25) per year of credited service. Credited service shall commence based on the date of membership in the Plan.

As of November gth, 2006 the Plan shall provide a monthly Pension for a defined benefit of Twenty Dollars and Fifty Cents ($20.50) per year of credited service. Credited service shall commence based on the date of membership in the Plan.

As of November gth, 2007 the Plan shall provide a monthly Pension for a defined benefit of Twenty Dollars and Seventy-Five Cents ($20.75) per year of credited service. Credited service shall commence based on the date of membership in the Plan.

Employees shall also be entitled to participate in the contributory option of the Pension Plan. For each employee who voluntarily contributes a percentage of their previous year's earnings which is restricted to either one percent (1% ), two percent (2%), three percent (3%) or four percent (4%) of the previous year's earnings, the Employer will match the contribution at a rate of twenty-five percent (25%) ofthe dollar calculation. For example, if the employee contributes One Hundred Dollars ($1 00.00), the Employer will match by contributing Twenty-five Dollars ($25.00).

The terms and conditions of the contributory and non-contributory options of the Pension Plan including enrolment, coverage and entitlement will be subject to and governed by the terms of the Pension Plan.

24

ARTICLE 30

DURATION OF AGREEMENT

30.01 This Agreement shall become effective on the 8th day of November, 2005, and shall remain in effect until the 7th day of November, 2008 and shall continue in force from year to year thereafter, unless either party shall furnish the other with notice of termination or proposed revision of this Agreement not more than ninety (90) days before the 8th day of November, 2008, or in a like period in any year thereafter.

SIGNED THIS DAY OF '2006.

25

SCHEDULE "A"

Automatic Payroll Deposit

Employees will be paid via direct deposit. Implementation will be December 5, 2005. The Company shall notifY, in writing, the affected employees.

Eff. 1118/2005 Eff. 1118/2006 Eff. 1118/2007

CLASSIFICATION RATE RATE RATE

Skilled

Operator (without $17.05 $17.40 $17.80 supervision)

Operator (with $16.05 $16.40 $16.80 supervision)

Additive Technician $16.05 $16.40 $16.80

Additive Tech/Maintenance $15.35 $15.70 $16.10

Maintenance $18.15 $18.50 $18.90 Mechanical/Electronic s

Maintenance (start) $14.65 (start) $15.00 (start) $15.40

$17.15 after 2 years $17.50 after 2 years $17.90 after 2 years of experience in class of experience in class of experience in class

Maintenance Helper $14.65 $15.00 $15.40

Semi-Skilled

Forklift Operator $14.05 $14.40 $14.80

Forklift Operator/(]) $13.15 $13.50 $13.90 Line

Sealer $13.75 $14.10 $14.50

Shipper/Receiver $14.05 $14.40 $14.80

26

Eff. 1118/2005 Eff. 1118/2006 Eff. 1118/2007

CLASSIFICATION RATE RATE RATE

Unskilled

Utility (start) $11.45 (start) $11.80 (start) $12.20

$12.25 after 3 months $12.60 after 3 months $13.00 after 3 months of experience in class of experience in class of experience in class

Janitor/Utility Person (start) $11.45 (start) $11.80 (start) $12.20

$12.25 after 3 months $12.60 after 3 months $13.00 after 3 months of experience in class of experience in class of experience in class

Shift Premiums $00.25 $00.25 $00.25

The Company agrees to train all employees in the "Operator" classrficat10n m secunty procedures.

The Company reserves the right to assign security duties and responsibilities as it deems necessary.

27

LETTER OF UNDERSTANDING - INDIAN ACT - BENEFITS

This letter covers employees who possess official Indian status under the Indian Act. Provided, these employees receive health, dental care and vision care benefits from another source without cost the Employer, the Employer shall pay 100% of the premium cost for life insurance and LTD after three (3) months of employment. Article 29 will apply in all other respects.

SIGNED THIS DAY OF '2006.

28

LETTER OF UNDERSTANDING- ADDITIVE TECHNICIAN TRAINEE

The Employer agrees to train one (1) person as a back up to the Additive Technician. The Employer will post a position called "Additive Technician Trainee" and will fill the position in accordance with Article 16. The Employer will provide training to the successful applicant for a maximum of two (2) weeks during which the employee will continue to receive his current rate of pay. The employee will not receive the Additive Technician rate of pay during the training period. After the training is completed or two (2) weeks have elapsed, whichever occurs first, the employee will return to his former position.

SIGNED THIS DAY OF th~ ,2006.

EMPLOYER

/Jam In Cfd~l_)/1}/)1_/

29

LETTER OF UNDERSTANDING- TEMPERATURE WITHIN PLANT

The Employer and Union agree to refer the issue of the temperature inside the plant during the summer season to the Joint Health and Safety Committee. The Employer will draw on both internal and external resources and will develop a Management recommendation of options to resolve this issue to the Joint Health and Safety Committee by December 31, 2004.

SIGNED THIS DAY OF '2006.

LETTER OF UNDERSTANDING CASUAL EMPLOYEES

This is to confirm the understanding between the parties with respect to the use of casual employees. The parties agree that, under the following conditions, the Company may employ casual employees:

1.) Casual employees may be hired during peak production periods, for vacation relief, for special programs or to cover for temporary absences due to illness, injury or approved leaves of absence.

30

2.) For the first 90 days worked in a twelve-month period, a casual employee will be paid the start rate for the Utility classification, after which they will be paid the full rate of the Utility classification.

3.) There will be a separate seniority list maintained for casual employees. A casual employee will have their name added to the seniority list after they have worked for a period of time equal to sixty days worked in a twelve month period.

4.) Casual employees will be the first to be hired into a full time position, in order of seniority, in the event the Company requires additional full time employees.

5.) Casual employees will not be covered under the terms of the Group Insurance and Pension Plans.

6.) It is not the Company's intention to replace bargaining unit positions with casual or temporary employees. Casual employees will be laid off prior to any layoff of seniority employees.

SIGNED THIS DAY OF '2006.

EMPLOYER

cfltn 'h1 cl§wn~

• 31

LETTER OF UNDERSTANDING- HUMANITY FUND

The Company agrees to deduct on a weekly basis the amount of $0.01 cents per hour from the wages of employees in the bargaining unit for all hours worked and to remit the amount so deducted by the fifteenth day of the month following to United Steelworkers, National Office, 234 Eglinton Ave. East, Suite 800, Toronto, Ontario M4P 1K7, and to advise in writing both the Humanity Fund at the aforementioned address and the Local Union that such payment and the names of all employees in the bargaining unit on whose behalf such payment has been made.

SIGNED THIS DAY OF '2006.

32

LETTER OF UNDERSTANDING- TECHNOLOGICAL CHANGE

In the event of the implementation of technological change the Company shall meet with the Union to discuss these changes.

The Company shall provide any required training to the effected employees.

SIGNED THIS DAY OF '2006.