2008 - 2012

MEMORANDUM OF AGREEMENT

BETWEEN

United Steelworkers LOCAL 1- 363

AND

COMOX VALLEY DISTRIBUTION LTD

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MEMO RANDUM OF AGREEMENT

THIS AGREEMENT entered inlo this 18th day of July, A.D.2008

BETWEEN:

AND:

PREAMBLE:

COMOX VALLEY DISTRIBUTION LTD. (Hereinafter known as the -COMPANY"')

OF THE FIRST PART

UNITED STEELWO RKERS LOCAL 1·363 (Hereinafter know as the ·UNION')

OF THE SECOND PART

The purpose of this Agreement is to secure 'Of the Company. the Union and the Employees the lull benefits Of Ofder1y and legal collective bargainil'lg, and to ensl.l"e 10 the utmost extent possible the safety and physical weIIare of the Employees, economy 01 opemtion, qualily and quantity 01 outpUt. and protection 01 property and public safely. II is recognl~ed by this Agreement to be the duly 01 the Company and the Union and the Employees to cooperate fully, individually and coIlectfvely, lor the adVancement 01 said conditions. It is also agreed that the Company. the Union. Owner· Operators, and Employees will wor1t together to ensure the customers receive the best possible service.

The Company and the Union agree to abide by the terms set out In this Agreement. The Union further agrees that it WlU at all hmes instruct its members to act In accordance with the terms contained In this Agreement. The Company agrees, In the exercise 01 the lunc1lons of Management that the provisions 01 the Agreement will be carried 001.

ARTICLE 1 BARGAINING AG ENC Y

Section 1: Recognition

(a) It is agreed that when a dispute arises as to whether or not a person is an Employee within the bargaining unit it shall be subject to grievance procedure as provided in Article XII , Section 1, Step Three, aOO in the event of failure 10 reach a satisfactory settlement it shall be dealt with by arbitration as set forth in Article XIII. Section 1.

(b) The Union agrees to issue a w ithdrawal card to Employees transferred from the bargaining unit 10 a job outside the bargaining unit providing thaI no disptlte arise within the meaning of Clause (a) herein.

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Section 2: Meetings

___ .~ •• U'_."m_.'.h_~ __ mq. __ ~_ upon for the purpose of discussing wages and wol'klng conditions and adjusting any matters within the confines of the Agreement which come within the scope of collective bargaining between employer and Employee.

Section 3: Bargaining Authority

The Party of the First Pari agrees that the bargaining autnority of the Party of the Second Pari shall not be impaired during the term of this Collective Agreement. The Party of the First Pari agrees that the only certification thatlhey will recognize during the term of this Agreement is tha of the Party of the Second Part, unless ordered by due process of law to recognize some other bargaining authority.

Section 4: Access to Qperation

Official Unioo representatives shall obtain access to the Company's operations for the purpose' this Agreement by permission which will be granted by the Company on request and subject to such reasonable terms and conditions as may be laid down by the company.

ARTICLE II EMPLOYE RS'S RIGHTS

Section 1: Management and Direction

The management and the operation of, and the direction and promotion of the working forces is vested exclusively in the Management; provided, however, that this will not be used for the purposes of diSCrimination against Employees.

Section 2: Hiring and Discipline

The Company shall have the right to select its Employees and to discipline or discharge them 10 proper cause.

ARTICLE III UNION SECURITY

Section 1: Co-operalion

The Company will co-operate with the Union in obtaining and retaining as members the Employees as defined in this Agreement, and to this end will present to new Employees and to all supervisors and foremen the policy herein expressed.

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Section 2; Union Shop

All Employees shall immediately aiter entering employment, become members of the Union and maintain membership therein throughout the term of this Agreement, as a condition 01 continuec employment.

Section 3: Maintenance of Membership

The Employee who Is a member in good standing, or is reinstated as a member of the Union shall as the condition 01 continued employment maintain such membership In good standing throughout the term of this Agreement.

Sectjoo 4: Discharge of Non-.members

Any Employee who failed to maintaln his membership in the Union as prescribed herein by reason 01 refusal to pay dues and assessments shall be subjeclto discharge alter seven (7) days' wrinen notICe to the Company of the said Employee's refusal to maintain his membership.

Section 5: Union Membership

(a) No Employee shall be subject to any penalties against his application for membership Of reinstatement, except as may be provided lor in the Steelwort<ers Constitution, and in accordance With the By·laws of the Local Union.

(b) Any Employee who applies to join the Union pUfSuant to the proviSionS herein and whose application is rejected by the Union, shall not be subject to discharge from employment.

Sectioo 6: Check.Q!f

The Company shall require all new Employees at the time of hiring to execute the following assignment of wages in duplicate, the fOnTIs to be supplied by the Union.

Check-Otf assignment forms shall be completed and signed at the dale 01 hiring. and such lorms shall be forwarded within seven (7) days after the effective hiring date. This assignment in the case of all Employees shall be effective Immediately.

(CHECK-OFF AUTHORIZATION fOfTTl to be inserted)

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The Local Union shall notify the Company by leller of the amount of back dues owed by new Employees and copies of such letter shall be furnished to the Employee and Ihe Shop Committee.

The Company shall remit the dues deducted pUfsuantto such assignment (until and unless said assignment is revoked by Ihe Employee) to the Local Union named therein not less often than once each month , with a written statement of names of the Employees, job position, rate of pay, and senority date, for whom the deductions were made and the amount 01 each deduction.

SllCtiQn 7; Social Insurance Number

The Company shalilumish the Union with the Social Insurance Number of each Employee on its payroJi on the first occasion when dues are forwarded to the Union after the execution of this Agreement or after the employment of the Company, whichever date last occurs.

Section 8: Union Dues

The Company will deduct and submit to the Local Union, monthly union dues from all Employees (including probationary Employees) and Owner Operators.

Section 9: Initiation Fees

The Company shall deduct and submit to the Local Union, initiation fees for all Employees and Owner Operators within thirty (30) days of their hire date.

ARTICLE IV SHOP COMMITIEE

Section 1: Definition

For the purpose of this Agreement, when the term ·Shop Committee" is used, it shall mean a Committee, the members of which are appointed by the Union .

Section 2: Notification

The Union will, within sixty (60) days from the date of this Agreement, notify the Company in writing of the members of the Shop Commitlee. The Union or Shop

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Committee will inform the Company in writing when a member change takes place on the said Committee. No member of the Shop Committee will be recognized by the Company unless the above procedure is carried out.

Section 3: Exceptions

The provisions of Sections 1 and 2 will not apply In reference to:

(a) Article XI - Accident Prewntion Committee, where the members are designated according to the provisioos of the Worker's Compensatioo Act.

ARTICLE V RATES

1. Rates for Owner Operators shall be according to Supplement No.1.

2. Owner Operators who work on the dock or in the yard will be paid at rate for driver (hourt/) excluding time for loading their own truclts

3. Truck Drivers will be paid drivers rale lor all duties performed.

4. Employee wage rates will increase according to the loIlowing wage supplement.

Dockworker- Chargehand

Dockworker

Straight Truck·Driver

Tractor Driver

Wage SUPPlement

EHective EHectlve EHective EHective EHective

S20.23/hr S20.68/hr S21.13/hr $21.58hr $22.03Ihr

$20.63Ihr $21.08/hr $21 .53/hr $21.981hr S22.431hr

$21 .02Jhr $21471hr $21.92/hr S22.37Ihr S22.82Ihr

5. For hours worked in excess ollorty (40) hours in any week Employees will be paid at one and one·hatf times Ihe regular rate.

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6 New hire rate for Employees hired April 28, 2003 and after will be $2.00 less for first year, 51 .50 less for recond year and SI.00 less for third year. Full rate will apply at end of third year.

7. Any Hourly Employee acknowledged by the Company as the First Aid Level 2 Designate wilt receive an additional $00.25 per hou·to the rates listed. lor as long as they remain the DeSignate.

8. When traveling from Nanaimo to Vancouver, Company drivers will be required 10 book off 1 hour lunch break per round trip.

9. Statutory Holidays Employees shall receive their regular scheduled ooya peY3 unte" they work the Statutory Holiday in which they shall be paid 8 hours statutory pay in addition to hours wol1l.ed. All hours wol1l.ed on a Statutory Holiday shall be paid as per ArtiCle V, Sectbn 5. The Employee thai works the Statutory Holiday shall also be entitled to another compensating day off , without pay, to be scheduled and taken Within ninety (90) days.

ARTICLE VI RETIREMENT PLAN

Comox will offer a retirement pt.., which matches the Employee'sIOwner Operato(s contribution up 10 3% of monthly earnings 10 a yearly maximum of $800 lor Year I, $1.000 maximum for Years 2, 3 and 4 and to a maximum 01 SI,200 lor Years 5. The Employee/Owner Operator must be employed for a period 01 2 years to participate in the plan. If they withdraw any portion of their contribution during their tenure with the Company. they witt forego any contribution from the Company lor one lull calendar year. If an Employee or Owner Operator leaves the COI'll>3ny, the balance In their account (both Employee and Company contriblltions plus growth) may be translerred to another plan of their Choice.

Employees/Owner Operators. jOining the Company on or before June 1. 2008. will be eligible to participate in the plan upon its implementation. II they decide nol to participate upon implemertal ion then all future part icipation will be on t'1e basis 01 the plan's establ ished regulations.

ARTICLE VII HEALTH & WE LFARE

Section 1; Proyincial Board 01 Trustees

Forest Industrial Relations Limited, together with the Interior Forest LabolJr Relations Association, the C<luncil of Northern Interior Forest Employment

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RelatlOfls. Northwood Pulp and Timber lid •. Canfor limited. Wek:fwood of Canada Limited and the United Steelworkers agree to estabH$h one set 01 trustees for the purpose of developing a common text, a common trust agreement and a common Employee booklet for the six Heath & Welfare Plans, covering Life Insurance, Accidentat Death and Dismemberment Insurance and Weekly Indemnity.

The Parties agree that a Joint Commlnee. representing Forest Industrial Relations limited. the Interior Forest Labour Relations Association, the Council 01 Northern Interior Forest Employment Relations. CanfOf limited, Northwood Pulp and TImber lid., Weldwood of Canada limited and the United Steelworkers. witt be established to study the most eHective method of administration 01 the Plans. reporting to the Parties no laler than July 1, 1984.

Section 2: F.I.R. USW Board 01 Trustees

The Board 01 Trustees, composed 01 \tuee (3) members representing United Steelworkers and three (3) members representing Forest Industrial Relations limited, are responsible tor the administration of the USW - Forest Industry Health & Welfare Plan. The Trustees are also responsible for the selection of carrier, funding, adjudication of compassionate appeals and Health & Welfare problems directly related to the Plan.

Section 3: Insurance Coverage

The following coverage will be instituted on an Industry wide basis with a common carrier.

(a) Group Life insurance for each qualified Employee: Effective June 15. 1989 $40,000 EHective June 15. 1990 $45,000

(b) Accidental death & dismemberment Insurance lor each qualified Employee:

EHective June 15, 1989 $40,000 EHective June 15. 1990 $45.000

The Weekly Indemnity as follows:

Effective January 1 , 1995, in the amount of four hundred and twenty-nine dollars (S429) per week for fifty-two (52) weeks;

A Joint Commiuee will be established With appropriate terms of reference to study the possible abuses of the Weekly Indemnity Program and to make recommendations to the Trustees of the Health & Welfare Program with a view to eliminating any abuses of the Program.

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The Union agrees that if the Company maintains Weekly Indemnity Plan benefi ts which will meet the standard requirements for full premium reduction for ....... age loss replacement plan under the Unemployment Insurance Act" , the Employees' 5I12"'s share 01 the premium reduction is retained as payment in kind in the provisions d the Weekly Indemnity Plan benefrts

Section 4: Medical Coverage

Medical coverage including Extellded Health Benefits coverage shall be provided by Ihe Company at no cost to the Employee. The Extended Health Benefit coverage shall include:

(a) Hospitalization coverage up to maximum of $.8.50 per day:

(b) Etlec'.ive June 15. 1982, payment up to a maximum of one hundred dollars ($tOO) per person in any lWenty-four (24) consecutive mooth period for charges incurred relative to the purchase of lenses and frames or contact lenses when prescribed by a person legally qualified to make such prescription.

Section 5: General Principles

(a) Premium cost for insurance shall be paid by the Company.

(b) Participation In the Plan is 10 be a condition of employment.

(c) Any flew Employee will be eligible to become a covered Employee on the first day of the month following completion of Ihe probationary period.

Stc!lon 6: Dental plan

(a) A Dental Plan will be provided based on the following general principles:

(i) Basic dental services (Plan A) - Plan pays 80"':' of approved schedule of fees.

(ii) Prosthetics, crown and bridges (Plan B) - Ptan pays 50% of approved schedule of fees.

(iii) OrthodontiC (Plan C) - Plan pays 50% of approved schedule of fees (Lifetime maximum of $20(0)

The principles set out in Section 5 shall apply to the Denial Plan.

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Section 7: OotiO!1 Change

The ComparlY has the right to propose an alternative carrier lor the Health & Welfare Plan as long as the benefits are the same

Section 8: Retuming to Work Aher Lay-Qff

When returring to work aller a lay-off benefits will resume as follows:

(a) Lay-<llf of one (1) full calendar month - Eighty (80) hours needed in one (1) month to restart benefits

(b) laY-<lff of two (2) full calendar months - One Hundred and thirty (130) hours needed in one (1) month to restart benefits.

Section 9: Employee and Family Assistance Program

The Company will make available an Employee and Family Assistance Program to all permanent full lime Employees and Owner Operators in years 3, 4 and 5 of the ContraCl

ARTICLE VIII SENIQRITY

SeClion 1: Principle

The Company recognizes the principle of senionty. competency considered. In the applicallon of seniority, it shall be determined first by department, second by terminal and third by Company. Only Ihose Employees with then five (5) years or more seniority will be allowed 10 bump from lerrnifIBllO terminal. Those Fmployees .... ith five (5) or more ye:flr's seniority may only bump if thAY am l;aid off from Ihelr home terminal Departments are: Tractor Driver. Straight Truck Drivers, Dock Workers, Tractor Owner Operators and Straight Truck Owner Operators.

Section 2: Reduction and Recall of Forces

(a) In the event of a reduction of the forces, the last person hired shall be the first released subject to the competency of the person involved.

(b) Wher recalling forces aher a period 01 layoff following a reduction of forces, an Employee shall be recalled in order of his seniority subject to the competency of the person involved.

(cl Employees will be notified of recall by telephone, which will be confirmed by registered mail It is the responsibility of laid-<ljf Employees to keep the

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Company informed of the r current address and telephone number. An Employee being recalled 'llust return to work as soon as reasonably possible after the first notice 01 recall as described above, but no later than three (3) wooong days after issue of the registered notice Any Employee wol1ling full time elsewhere may request additional time up to a perlod totaling two weeks for the purpose of providing adequate notice to thaI Employee's then existing employer.

Section 3: Re1ention During Layoff

It is agreed between the parties that senionty during layoffs shall be retained on the following baSIS:

(a) Employees wtlh lec(; th3n one ( t ) Y0;3!"S' service SM;311 rot;3;n thOlr soniority for a period of six (6) months.

(b) Employees With less than ooe (1) years' service shall retain their seniority for a period of six (6) months.

(c) Employees With ooe (1) or more years' service shall retain their seniority for one (1) year, plus one additional month for each years' service. up to an additional six (6) months.

II shall be the employer's responsibility to maintain an address file on his Empfoyees and it shall be the Employee's responsibility 10 nolify his employer in wnting of any change of address.

Section 4: Probationary Period

(a) Notwithstanding anything to Ihe contrary contained in this Agreement save and exceptlhe provisioos of Clause (b) of the Sectioo, it shall be mutually agreed Ihat all Empfoyees are hired on probation, the probationary penod to continue for six (6) months, during which time they are to be considered lemporary workers only, and during this same period no seniority rights shall be recognized.

It is agreed that this period of probation is the period dunng which Ihe Company has the right to assess an Employee to determine whether SLlCh Employee is, in Ihe opiniorl of the Company, suitable for employment.

Upon completion of seven hundred and eighty (780) working hours within six (6) months, they shall be regarded as regular Empfoyees, and shall Ihen be entitled to seniority datin~ from the day on which they are hired. Probationary Employees will be called into work on the basis of Iheir hire date.

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(b) Clause (a) of this Section does not apply to Employees who move from one operation of a Company to another operation 01 the same Company within thirty (30) days for those lad-off; and within ninety (90) days lor those terminated as a result 01 a permanent closure.

Section 5: Assignment 01 Runs

Tractor runs will be assigned on a rotation basis providing the equipment is suitable for the run and the driver is acceptable to the customer. Owner Operators may decline set runs providing it is acceptable 10 Ihe Company.

Straight truck will be assigned alld reviewed yearty on set runs. Changes will be based on the unit and other reasonable concerns that Company may have.

Section 6: Shift Assianment for Hourly Employees

(a) Seniority shall be given preference to shift assignment when an individual expresses a shift preference.

(b) Top 50% of regular hourly Employees at each terminal to be guaranteed 40 hours per week. (regular Employees are those thai have completed probationary period.)

Remainder of current Employees (at date 01 signing Ihis agreement) to be called as per hire date

New hires (hired after signing 01 the agreement) to be called in as per senicrity date, after completion 01 probationary period.

Section 7: Absence WithO!Jt Leave

An Employee who is absent without leave lor a period of more than three (3) consecutive wor1\ing days shalilortelt all seniority rights. This shall not intertere with the employer's righlto discharge for proper cause.

Sec!ion 8: SeniQrity List

It is agreed that a seniority list will be supplied to the Union by the Company twice during each caJelldar year, selting out the name and starting date with the Company and the starting date for department seniority of each regular Employee. The Company will advise the Union once each month of changes to the said list.

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Section 9: Company Trucks

(a) If the Company puts on a company truck, it will be offered 10 driver-owners on a seniority basis. The Company may buy the driver-owners truck al current wholesale value or may lease it back.

(b) The Company Will not lay-off or fire driver-owners to replace them with Company trucks.

(c) It will not be a requirement for Company Employees to purchase any vehirular equipment as a condition 01 continued employment.

(d) The Company will have the right to have Owner Operator equipment ten (10) years and older to be upgraded.

Section 10: Change of Ownership

In the event Ihallhe Company is sold this agreement shall provide soccessorship rights to all Employees under the new ownership.

Section 11 : Job Posting

All vacancies shall be posted at all tellllinrus for flOt less than 120 hours. The Company shall fill the position according to Art VIII , sec. 1 Seniority, provided that the app icent is competenl to do the JOO

A. All postings shall include the classification. the hours of the shift, rate 01 pay and Ihe days of Ihe week.

B. An Employee absent from worX due 10 suspension, vacation. WCB, Weekly or I ong TlIrm DiSlihility shall notify tha Company in writing 01 their Intention to apply for a job posting which may be posted in their absence,

C. lIthe position is then still not filied it Will be open to the general public.

D. Vacation relief lor a period of one (1) week or longer shall be filled on a temporary basis with Ihe most senior qualified Employee upon their request.

E. When a joo within a classification covered by this agreement becomes vacant for two (2) weeks or longer due 10 sickness or injury the Company will fill the position on a temporary basis with the most senior qualified Employee upon their request.

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ARtTCLE IX - LEAVE OF ABSENCE

Section 1: Injury and Illness

The Company wII! grant leave of absence to Employees suffenng Injury Of illness lor the term of this Agreement. subject to a medical certificate if requested by the employer. The Employee shall report or cause to have reported the injury of illness which requires his absence to the Company as soon as may be reasonably possible.

Section 2: Maternity !Indio! Parental Leave

The Company will grant a reasonable period of e)[lended maternity and/or parental lea'le without pay to Employees where there is valid reason. The Company w II cover and pay the premiums fOf the Employee's benefit coverage up to a maJ(imum of seventeen (17) weeks

Section 3: Written Permission

Any Employee desiring leave of absence muSI obtain permission in wriling from the Company for such leave, e)[cept in cases of il lness or injury covered by Section t above.

Section 4 : Compassionate Leave

The Company will grant leave of absence up 10 a ma)[imum of sil( (6) months without pay:o Employees for compassionate reasons or for educational or training or extended vacation purposes, conditional on the following terms:

(~) T~1 the Fmployee ~rrlY~' 11'1.<151 one (1) monlh in 3dvance IInle"" the grounds tor such applicatlQll could r"IOt reasonably be foreseen.

(b) That the Employee shall disclose the grounds for application,

(c) That the Company shall grant such leave where a bona fide reason is advanced by the applicant, Of may postpone leave for educational or training purposes where a suitable replacement is not available.

(d) AU benefits will be paid by Owner-Operators while on such leave.

Section 5: 6:reavement Leaye

(a) The Company will grant up to three (3) days leave of absence with pay to all regular Employees 11'1 the event of a death in said Employees immediate family.

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(b) The Company will grant up to three (3) days leave of absence without pay to temporary Employees in the event of a death in said Employees immediate family.

(c) ItTVT16<Iiate family shall be defined as: Employee's spouse, mother, father, brothers, sisters, daughters, sons, mother-in-law and father-in-law, sons-in-law, daughters-in-law, stepchildren, step-parents, grandparents, grandparents·in·law and grandchildren.

Section 6: Union Business

(a) The Company wi" grant leave of absence to Employees who are appointed or elected to Union office for a period up to and induding three (3) years. Further leave of absence may be granted by mutual consenl The Employee who obtains this leave of absence shall return to his Company within thirty (30) calendar days after completion of his term of employment with the Union.

(b) The Company will grant leave of absence to Employees who are elected as representatives to attend Union meeting and Union conveotions Of as members of any Negotiating Committee of the United Steelworkers in order that they may carT)' out their duties on behalf of the Union.

(c) In order fO(" the employer to replace the Employee with a competent substitute, it is agreed that before the Employee receives this leave of absence, as set forth in Clause (a) and (b) above, the employer will be given due notice in writing: in the case of (a), twenty (20) calendar days; and in the case of (b), fIVe (5) calendar days.

ARTICLE X - VACATIONS WITH PAY

Section 1: vacation Time

(a) Vacations for Employees and Owner Operators shall be taken as per holiday scheduling agreement. The Employee shall nave the right to schedule a minimum of two (2) weeks holidays at the time of their choosing except at prime times, when requests for more than two (2) weeks shall be subject to management approval. (Prime time is June 15 to September 15). The Company recognizes their obligation to have staffing levels to allow the Employees to take their holidays as per (b) below. .

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(b) All eamed vacations up to 2 weeks must be taken. On December 15 cf each calendar year all unused vacation from the previous calendar year (in excess of 2 weeks) will be paid 10 Ihe Employee.

(c) Scheduling Agreement

(i) Holiday bookings will be by seniority when making application between January 1 and the last day of February. Holidays booked during this period shall be taken between March 1 and the last day of February of the following year.

(ii) The senior person in the job category shall be given preference if or when Quantity and regularity of productions is an issue for holidays booked up 10 or prior to last day 01 'ebruary.

(iii) Holidays scheduled after lasl day of February for the calendar year shall be based on a first come first serve basis. An Employee may schedule one (1) day of vacalioo with vacation pay, subject to management approvat. The Company shall give written approval or denial within seven (7) days of application by Employee.

(iv) Nothing in this Agreement shall preclude any Employee taking all their holidays at one time provided it does not interlere with productivity and regularity of production, subject to management approval.

(v) If an Employee has five (5) or more consecutive verifiable sick days They may apply to use holiday pay for the lost time.

(d) Vacation AIIQtment

When setting vacation schedules, the Company will consider straight truck drivers and straight truck Owner Operators as one group and dockworKers, Company drivers and tractor Owner Operators as a second group. The number of vacations that can be underlaken during the same period will be governed by the size of each of the two group:> within each terminal. The vacation allotment will be determined as follows:

t to TO positions:::: 1 vacation spot 11 to 23 positions:::: 2 vacation spots 24 to 33 positions:::: 3 vacation spots Over 33 position:::: 4 vacation spots

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(e) All Employees with 12 or more years 01 tenure with the Company will receive 4 weeks vacation (6%).

Section 2: Employment Standards Act

Pan 7 - Annual Vacation of the Employment Standards Act, R.S.B.C., 1996, c. 113, and amendments thereto, except where varied or modified by the provisions herein, shall become a part of this Agreement.

ARTICLE XI - ACCIDENT PREVENTION COMMITTEE

Section 1: Composition

(a) The Management of every operation shall maintain an Accident Prevention and Safety Committee consisting of an equal number of representatives 01 the Company and the Employees. Employee representatives will be elected by a vote supervised by the Union .

(b) Employee representatives shall be regular Employees in the operation with alleast one (1) year's experience in that type of operatIOn over which their inspection duties shall extend.

Section 2: Duties

The general duties of the Accident Prevention and Safety Committee shall be as directed by the regulations made pursuant to the WorKers Compensation Act.

Section 3: Pay for Meetings

(a) The Company will pay straight-time rates not exceeding two (2) hours per meeting 10 Employee members lor the actual time spent in attending Accident Prevention and Safety Committee meetings outside of working hams.

(b) The rate to be paid to Employee members shall be the Employee's regular straight-lime job rate.

Section 4: Meetings During Work;

Where Accident Prevention and Safety Committee meetings are held during working hours with the consent of the Company, Employees' time will not be deducted for attending such meetings or investigations into accidents.

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Section 5: Investigations

In the case of an accident. the Accident Preventioo and Safety Committee in the operation shall, where reasonably possible, within forty-eight (48) hours, appoint one union member of the committee to assist in conducting an investigation into such accident. When Investigations are conducted by the RCMP or the Department of Transport, a union member of the committee shall be appointed to assist in the Investigation, upon request of the Investigators, All accident Investigation reports will be reviewed by the Accident Prevention and Safety Committee,

Section 6: Forklifts and Power Jacks

All Union workers are to be tra ined in the proper operation 01 forklifts and power jacks. The Company wi ll pay for and provide the training to operate a forklift and power jacks.

ARTICLE XII- ADJUSTMENT OF GRIEVANCES

Section t : Procedure

The Company and the Union mutually agree that, when a grievance arises in the plant or canp coming under the terms of this Agreement, it shall be taken up in the manner set out below:

Step One The individual Employee involved shall first take up the matter with the supervisor directty in charge 01 the work within fourteen (1 4) days of the date 01 the saJd grievallCe.

Step Two lithe questiOn is not satisfactorily settled in this way, the same individual, With the Shop Committee, shaJl take up the problem with ei lher the personnel officer of foreman. or both, as designated by the Company.

Step Three II the problem is not then satisfactorily solved, it shall be referred to the Unioo and the Management.

Step Four (f a satisfactory settlement is nol then reached, it shall be dealt with by arbitration as fonh in Article XIII.

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Segion 2: Time limit

If a grievance has not advanced to the next stage under Step Two, Three, or Four within fourteen (14) days after completion 01 the preceding stage, then the grievance shall be deemed to be abandoned, and all rights of recourse to the grievance procedure shall be at an end. Where the Union is not able to observe this lime limit by reason of the absence of the aggrieved Employee or the Shop Committee from the camp the said time limit shall not apply. The Union shall be bound to proceed in such a case as quickly as may be reasonably possible.

ARTICLE XIII - ARBITRATION

Section 1: Interpretation

(a) In case of any dispute arising regarding the interpretation of the Agreement or by the application of Article I, Section 1 thereof, which the Parties hereto are unable to senle between themselves. the matter shall be determined by arbitraton in the following manner.

Either Party may notify the other Party in writing, by registered mail, 01 the question or questions to be interpreted.

(b) Ali decisions will be final and binding upon the Parties of the First and Second Parts.

(c) The Parties agree to jointly seek a permanent interpreter to be agreed upon mutually and shall, ~ possible, be a superior CO\.Jrt judge.

(d) In the event that the interpreter as provided lor in (c) herein is not available 10 preside as interpreter under this Section, the Parties agree that they will request the Honourable Minister 01 Labour 01 the Province 01 British Columbia or the Court 01 Appeal altha Province to preside as interpreter lor the dispute then pending.

Section 2: Grievances

(a) In the case of a dispute arising under this Agreement, which the Parties are unable to settle between themselves as set out in Article X, the matter shall be detetmined by arbitration in the following manner.

FithAr Party mlly nnlily the other Party and the Arbitflllor in writing. by registered mail, of the questioo or questions to be arni lrated.

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(b) After receivillg such notICe and statement the Arbitrator and the other party shall within three (3) days acknowledge receipt 01 the Quesbon or questions to be arbitrated

No one shall serve as an Arbitrator who:

(i) either direc!ly or Indirectly has any interest in the subject 01 the arbitration:

(ii) has parlicipated In the grievance procedure preceding the arbitration;

(iii) is. or has been, within a period 01 six (6) months, preceding the initiation 01 arbitration proceedillgs, employed by any Local Union, United Steeiwort<ers, or a Company directly engaged in the Forest Products Industry

(c) The decisiOn 01 the Arbitrator shall be final and binding upon the Parties 01 the First alld Second Pans

(d) If the Arbitrator finds that an Employee has been unjustly suspended or discharged, that Employee shall be reinstated by the Company Without loss of pay and wi th all his righ tS and privileges preserved under the terms of this Agreement, provided always that if ills shown 10 the Arbitrator that the Employee has been in receipt 01 wages during the period between discharge (or suspension) and reinstatement. or date oflailure to rehire and rehiring, the amount so received shall be deducted lrom wages payable by Ihe Company pursuant to this Section, further provided that wages so deducted shall be first reduced by the amount required lor the payment of lare from the original place 01 employment and to the place where employed during the period 01 discharge (or suspension) and return.

(e) The Arbitrator shall be required to hand down his decision within lourteen (1 4) days following completion of this hearing.

(I) The Parties shall appoint a panel of eight (8) Arbitrators The single Arbitrator shall be selected from thiS panel. If the Parties lall to appoint the required eight (8) Arbitrators belore September t , 1984, they shall forthwith request the Honourable Minister of Labour of the PfOVInce of British Columbia to appoint the Arbitrator reqUIred.

(9) The single Arbitrator shall be selected from the panel of eight (8) Arbitrators on a rotational basis. If an Arbltrator selected to hear and determine a dispute is unable to schedule a hearing to occur within thirty

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(30) days of this selection the dispute shall be reassigned to the next Arbitrator in the rotation.

Section 3: Cost Sharing

The Parties 01 the First and Second Parts shaJi bear in equal proportions the expenses and allowances of the Arbitrator. and stenographic and secretarial expense. and rent connected with his duties as Arbitrator.

Section 4: Place o f Hearing

The arbitration to be held hereunder shall be held althe City of Courtenay or at such other place as may be decided by the Parties.

ARTICLE XIV - STRIKES AND LOCKOUTS

(a) There shall be no strikes or lockouts by the Parties to this Agreement with respect to any maner arising out of the Agreement for which arbitration is provided under the terms of the Agreement.

(b) The Parties to this Agreement expressly agree that there will be no activity within the meaning of (a) above threatened. declared. authorized. counseled. aided or brought about on its part.

(cl In the event of a strike during the term of this Agreement the Union will instruct its members and Officers who may be involved to cease such activity and comply with the terms of this Agreement.

(d) In the event of a strike. all freight in transit will be delivered.

ARTICLE XV MEETINGS

There will be a minimum of four meetings per year (once in Courtenay. once in Port McNeil. once in Nanaimo and once in Victoria) between the Company. the Union. and the Employees to diSCUSS any concerns Employees may have.

(.J

ARTICLE XVI DURATION OF AGREEMENT

The Parties hereto mutually agree that this Agreement shall be effective from and after the Tl' day of July. 2008. to midnight the 3' · day of December. 2012 and thereafter from year to year unless wntten notice of

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contra'Y intention is given by either Party to the other Party within sixty (60) days immediately preceding the date of expi'Y. The notice required hereunder shan be validly alld sufficienlly served at the Head Office oIlhe Party al tha Firsl part, or at the local OffICe upon the local Officers 01 the Union, Party oltha Second Part, WIthin sixty (60) days immediataly pr9C9ding the 31 " day 01 December 2012. II no agreement Is reached at the expiration 01 this Contract and negotiations are continued, the Agreement shall remain in force up to the time an agreement is reached or until negotiations are discontinued, but either Party.

(b) The Parties hereto agree that the operation of Section 50(2) and 50(3) of the r Relations COOe of British Columbia. A .S.B_C. 1996, c. 244 is

from the Memorandum 01 Agreement

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Supplement '1 Qwner Operator Rates

T raetor Owner Operators Compensation

Year 1: $42.25 per hour Year 2: $42.75 per hour Year 3: $43.25 per hour Year 4: $43.75 per hour Year 5: $44.25 per hour

When called In, an Owner Operator will be paid for a minimum of 4 hours. In the event that 00 traetor work is available the Owner Operator may be utilized In

peliorming other wolit for the duration of the 4 hours.

The Owner Operator will pay all elCpenses relating to the performance of assigned tasks Including, but not limited 10, trucll purchase, mainlenance, license, insurance, fuel, drivers, vacation pay and slatutory holidays.

Straight Truck Owner Operalors

Compensation is based on the ra te tables attached. Trip rales will be paid accordil"lg to the attached schedule and will be paid in addition to fees earned according 10 the rate tables. The Owner Operator will receive an itemized schedule providing the details of his compensation althe time of payment

When required hourty rates will be paid at a rate of $32.34 (on road) and $48.65 (ott road service).

SKid rates will be based on a maximum of 2200 pounds. Any overages will be paid on a prorated skid rate basis (e.g. A 30CKJ pound skid would pay the skid rate for the first 2200 pounds and B()()f22(l(l times the skid rate lor the BOO pound overage. At a skid rate of $10 the driver would receive 510+53.64=$ 13.64)

All rates will be increased as follows:

Year 2: 2% Year 3: 2% Year 4: 2% Year 5: 2"/0

Full load pick ups will increase from $40 10 $50.

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Minimums

Straight truck Owner Operators will be guaranteed S5,OOO,OO per month lor a maximum 0160 hour work week. Those trucks musI be len (10) years old or newer, have 22h box or deck, 2,500 lb. power gate and a GW/ 0114,500 kg or more. The Company may waive the age requirement it the unit is in a good and sale condition. The Company may waive the paint requirement providing the unit meets the appearance requirements of Ihe Company. The Company, at its discreUon, may require that the Owner Operator oblain a C.V,I. to conlirm the safe condition of a unit

One ton trucks will be eligible lor a $2,500.00 monthly minimum on the same

Wait times will be based on the first 111 hour at no charge with any time over being paid in 15 minute intervals when the Owner OperatOf noles the times on the Bill of Lading and has the shipper/receiver ini1ial his acceptance.

The Owner Operator will pay all expenses relating to the performance 01 assigned tasks including, but notlimlled 10, truck purchase, maintenance, license, insurance, fuel, drivers, vacation pay and statutory holidays.

Accessorial Charges

Straight Truck Owner Operators will be enlltled to collect the following fees, providing that the Customer is charged lor the service, or the Owner Operator has received prior approval for the service from dispatch/management:

$50.00 $18.38 $18.38 $18.38

Hi Ab (lor up to 1 hour of use and $50.00 for each additional hour) Power Tailgate Residenlial Delivery Re Direct

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Straight Truck Trip Rates

Courtenay to Fanny Bay: $26.42 Coonenay 10 Port Albemi: $136.52 Courtenay 10 Campbell River: $50.32 Courtenay to Powel. River: $92.52 Courtenay 10 Port McNeill: $220.50 Courtenay 10 Port Alice: $270.63 Courtenay 10 Port Hardy: S270.63 Courtenay 10 MI. Washington: $83.71 Nanaimo 10 Fanny Bay: 584.30 Nanaimo 10 Delta: Hourty Nanaimo 10 ladysmith: $25.17 Nanaimo 10 Bamberton· $94.59 Nanaimo 10 Malahal (SOUlh ot summil): $107,17 Nanaimo 10 Pan<svWelOualiCum: $56.30 Nanalmo to Courtenay: $136.52 Nanaimo to Port Albemi: $124 .00 Nanaimo to Campbell River: $186.84 Nanaimo 10 DuncanlCroftonlChemalnus: $56.83 Nanaimo to Victoria/Sidney $136.52 Nanalmo 10 Shawnigan lake/MlII Bay: $82.00 Nanalmo 10 TolinoiUcluelel 5245.52 Nanalmo to Port McNeil: $357.02 Nanaimo 10 Port AliCe/Port Hardy: $407.15 Nanaimo 10 Shawnigan lakelMill Bay: $82.00 Duncan to Lake CowiChan: $25.17 Duncan to Maple BaylGenoa Bay: $ 1912 Duncan to Youbou: $25.17 Campbell River 10 MenZIes Bay: $23.36 Campbell River 10 Oulnsam $40.29 Campbell River 10 Gold River: $149.70 Campbell Riverto Sayward 561 .72 Campbell River 10 Browns Bay: $31 .14 Port McNeil to Port Hardy: S31.15 Port McNeil to Port Alice: 536.15 Victoria to Soake: $50.32 MetchosinJEasl Sooke· $25.17 Victoria Yard 10 MetchosinlEasl Sooke $25.17 Victoria to Soake $50.32 Victoria to Soake 10 MelchosinJEast Sooke: $75.49

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RATE TABLES

See Rate Tables immediately following this page.

26

VANCOUVER ISLAND

Pickup and Delivery Rates

VICTORIA, LADYSMITH, NANAIMO

DID PAY RATES

WEIGHT LEVEL 1 LEVEL 2 LEVEL 3

.99 3.40 '''' ,,,

100-124 4.49 3.99 3.49 125,'49 4.83 ,,, 3.76 l SO-H4 5.27 ,.'" '.00 175-199 5.97 5.31 4.65 200-249 8.21 ' .30 6.39

,"'''' 9.16 8.14 7.12

".", 10.10 B.98 '''' ''''''' 11.04 9.81 ,.'" .".." 11.94 10.82 9.28

''''''' 12.88 11.46 1002

&>O-H>OO 1.76 158 '" Minimum 12.88 1 1.46 10.02

,-"'" '" 1.23 1.07 Minimum 17.62 lS.63 13.69

=5000 1.01 0.89 0.78 Minimum 27.69 24 55 21.40

5OOOH)(>OO 0.66 0.59 0.51 M'rnimum so 35 44.38 38.81

10000 & over 0.37 0.33 0.28 M,nirrum "'.00 58.74 51.40

Ma>dmum Deliverl 6294 "" 62.94

Maximum PICkup 41.96 41,96 41 .96

VANCOUVER ISLAND

Pickup and Delivery Rates

CAMPBELL RIVER & AREA COURTENAY & AREA, DUNCAN & AREA PORT ALBERN I & AREA PARKSVILLE - QUALICUM & AREA

DIO PAY RATES

WEIGHT LEVEL 1 LEVEL 2 LEVEL 3

~" "" 2.33 2'" 100-124 3.40 3.02 2." 125-149 3.72 331 2.'" 150-174 4.13 3.67 3.21 175-19Q 44'1 ~,99 3.49 200-249 ,'" 4.98 4.35

25<>'" .. " ,,, ,.% =->oS 7.11 .. " 5.53 "'"", 7.85 6.98 6.11 4Q0-449 8.59 7.69 .'" ,,...,, 9.33 8.29 7.25

="''''' 1.52 1.35 L19 Minimum 9.33 '" 7.25

">00-2000 1.11 ,." 0.86 MInimum 15-21 13.53 11.85

200<>5000 0.86 ,n 0.67 MInimum 22.24 19.72 17.2ll

5000-""'" 0.56 0.49 0.43 Mlmomum 43.01 38.29 33,57

10000 It. 0119' 033 0.29 0.25 Mlni!OOm 55.60 4934 43.01

MaJlunum 0e1ive'Y 62.94 6294 62.94

Ma...mum Picku> 41.96 41.96 41.96

L.ETTER OF UNDERSTANDING

The Company and the Union agree on the following:

(1) It is agreed that 110 ded\.ICIlon from pay cheques for claims can be made without written authorization from Employee/owner-operalor,

(2) It is agreed that management Employees will wntinue 10 perform duties from time to time Ihat they have performed in the past.

(3) It is agreed that.

(a) There Will be zero tolerance for drugs and alcohol in respect to all woO< related actiVIties both 011 and off Company premiSes, and both inside and outside of wor1< vehicles.

(b) There will be a three stnke rule for selious violations of NatIOnal Safety Code. (Subject to Article X).

(cl Drivers must adVise Company 01 other employment. Drivers will not be permitted work beyond provisions 01 National Safety code.

(4) The parties agree that the Company is entitled 10 employ GPS tachl1Ology in connection with all work vehicles, both Company owned and owner· operated. Accordingly, the Company will receive Employee and Owner Operator co-operation With respect to the installation and use 01 such tracking and communication deVices. Company shall be responsible for all costs related to purchase, installalion and maintenance of I10ted equipment. MISUse or mistreatment 01 thiS equipment will not be tolerated.

(5) The Company Will prOVIde rain gear (including rain boots and gloves) lor all dockworkers working a regular shift which requires them to spend a substantial portiOn of the shift loading/unloading outdoors, The Employees issued such gear Will be reSjX>nsibie for replacing misplacedflost items at their ellC.pense.

(6) The Company agrees to make an annual S5J)OO.QO contnbuHon 10 the USW Education Fund in years 4 and 5.

(7) Company agrees to co-ordinate the premium wllection for the r hase 01 L.ong Term Disability Plan to be paid fOf the Employees and

er Operators iI they choose to have a plan.

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LEITER OF UNDERSTANDING

Fuel Cap

The Company will reba te all fuel costs (excluding GST), over $.55 per litre in Years 1 and 2 of the contract, $.56 per litre in Year 3, $.57 per titre in Year 4 and $.58 per litre in Year 5, irICUrred by the Owner Operator in the course of his work for the Company.

To qualify for the fuel rebate , the Owner Operator must make all tuel purchases on Company issued luel cards or at fuel outlets authorized by the Company. There will be no administrative cosls charged 10 the Owner Operator tor the lise 01 the Company fuel card.

The Owner Operator will continue to wor1l with the Company to minimize fuel consumption.

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LETTER OF UNDERSTANDING

Overtime Work

I. The Union recognizes lhal many of lhe Employees of Comol( Valley Distribution would like to work more than forty hours per week and do so as common practice without applying for or grieving lor overtime rates.

2. The employer has made it clear thaI overtime rates are prohlbllive to having Employees work more than lorty hours per week.

3. The Union agrees thai il an Employee voluntarily agrees to wol1l overtime at straight time rates the Union will not grieve lor the overtime pay.

4. The Company agrees that all overtime at straighl time rates will be on a voluntary basis only

5. The Company agrees that atl Employees that volunteer to wol1l overtime at straight time rates will sign a form stating that 'overtlme at straight lime rates is voluntary" and that "Voluntary straight lime overtime Is not a condition 01 employment, and shall not be used as a pre-employment condition."

6. Any Employee who agrees 10 wol1l overtime at straight time rates and signs aforemenhoned agreement may at any lime Withdraw from sudl agreement Withdrawal must be in writing.

7 The Company shalt forward to the local Union, copieS of letters agreeing 10 overtime at straight lime and copies of all letters W1thdrawing from such an agreement

8 Overtime at straight time agreement and withdrawallrom overtime agreement shall be on form or lorms approved by the Local UnIOn

g. 0 does not Sign overtime agreement, will be paid overtime requested to work overtime by the Company.

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LETTER OF UNDERSTANDING

Outside Cartage

The Company may continue to usa outside cartage where dictated by the needs of the business, always providing that it wlll use, when available, Company Drivers and Company Owner Operators whenever financially viable.

M./~/og o e 7

LETTER OF UNDERSTANDING

Woriters ComoenHlion Board Premium,

All Owner Operators will establish an individual account with WeB for purposes of paying premiums. The Owner Operator shall forward all invoices for premiums to the Company, who will remit payment directly to WCB.

31

LETTER OF UNDERSTANDING

Signing Bonuses

The Company agrees to pay a $500.00 Signing Bonus to all EmployeeslOwner Operators employedlullder contract June I , 2008.

32

LETTER OF UNDERSTANDING

Effective Dates for Trip Rates and Fuel Cap

The Company and the Union recognize that due 10 the complexity of the administrative changes required, the effective dale fOf Ihe implementation for any new trip rates will be July 16, 2008, and for the Fuel Cap August til, 2008.

33

LETTER OF UNDERSTANDING

RUpec"yI Wor1<place Po licy

The parties are committed to maintaining a wort< enVironment, which treats all Individuals, bargaining unit ana others, as well as all elien! and customer contract Individuals with dignity and respect ,

Unacceptable behavior is to be treated with zero tolerance and includes but is not restricted to:

1. Physical and verbal assault, fighting, threatening, intimidation, etc.

2. Discrimination aod/Of harassmenllncluding derogatOf)' comments. offensive remal1<s or conduct, taunting, etc.

3. Dishonesty, breach 01 trust, breach of confidentiality. breach 01 privacy. false claims, etc.

4. Mistreatment of Company of customerfclienl property.

5. Unsafe work practices in respect 10 all work related actiVities both on and off Company property Including careless, reckless or negligent conduct endangering the health or safety of others; or,the property of the Company or lis clientsfcustomers

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LEITER Of UNDERSTANDING Owner Operator Replacement Drivers

Between Comox Valley Distribution (the Company)

"d USW Local 1·363 (the UnIOn)

"d Comox Valley Distribution Owner Operators (Owner Operator)

.,d Replacement Driver

Whereas the Company needs assurances that Owner Operators Equipment is available for utilization and;

Whereas Owner Operators need a source of revenue in the event of extended leaves of absences that do not allow the Owner Operator to work and;

Whereas the Company and the Union wish to address the needs of the par1ies in a mutually acceptable resolve. the following conditions shall apply in the case of Replacement Drivers.

1. Owner Operators shall be allowed to use a Replacement Driver in ihe case of temporary illnesses or medical leave, as well as vacations that are approved by the Company.

2. Replacement Drivers must be approved by the Company prior to the Re~acement Driver beginnll1g work.

3. The Owner Operator and Replacement Driver recognizes the Company's right to withdraw its approval of its Replacement Driver in the event of a serious breach of customer service. ongoing cargo damage. equipment damage or any other incident which would be considered cause for termination in the nonnal course of business

4. The Owner Operator shall be responsible for training of the Replacement Driver in all aspects of the business required to perform efficiently to

Company standards. which shall include a minimum of two days of on the job training.

5. Replacement Drivers will be for a period of not longer than 90 days from the date of hire.

6. Replacement Drivers will become union members immediately upon the date 01 hire and the Company will submit dues on behalf of the driver beginning on the first day of hire. Ail dues remitted on behalf 01 the

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Replacement Driver shall be deducted from monies owed to the Owner Operator.

7. The Replacement Driver will be dispatched using his start date lor determining his assignments.

8. The Company shaH continue to pay benefits for the Owner Operator while on sick leave or holiday when a Replacement Driver is utilized,

9. Replacement Drivers shall not accumulate seniority on the Company seniority list and shall not be entitled to benefits during their temporary employment as a Replacement Driver.

10. The Replacement Driver shall be paid wages by the Owner Operator based upon Ihe Collective Agreement in place with Comox Valley Distribution at the time the Replacement Driver is hired. The Owner Operator ami /or Replacement Driver will provide verification of such on Ihe request of the Union ,

11. Should the Owner Operator require more than 90 days leave the Replacement Driver will be laid off and another Replacement Driver will be hired. If the Company. the Owner Operator. Ihe Union and the Replacement Driver agree the Replacement Driver may be rehired for a defined period of l ime agreed to by the parties prior to the end 01 the original 90 day period.

12. The Replacement Driver shall be provided this Agreement and agree to the terms of this Agreement prior to beginning employment.

13. The Company. The Union. the Owner Operator and the Replacement Driver will all sign this Agreement acknowledging they understand and agree the terms and conditions 01 this Replacement Driver Agreement.

14. of a Replacement Driver shall be at the Owner Operators n.

a';iner perator

36

LETTER OF UNDERSTANDING

Owner Operator Rate Review

ONner Operators shall have the right to have the Raies Charged to the Customer or their specific runs reviewed where extenuating circumstance prevail.

Such request shall be initiated by the Owner Operator taking the issue up with the TelTllinal Manager.

II a satisfactory resolution is not reached the Owner Operator shall then take the issue up with Ihe Area Manager. If a satisfactory resolution is still not reached. the Owner Operator may take the issue to the Shop Committee to be dealt with at Step II of the grievance procedure. The following sleps of the grievance procedure shall apply if no satisfactory resolulioo is reached at step II.

37

LETTER OF UNDERSTANDING

Owner Operator Compensation Review

t . The Owner Operator shall advise the Company of any concerns or questions regarding compensation within 30 days of receiving the compensation summary.

2. The Union will have the right to confirm that an Owner Operator is being paid at the rate level that is commensurate to the rate level being charged the customer. The President or the Financial Secretary of the Local will conduct the review for the Union and the General Manager or hislher designate will conduct the review tor the Company. All information relating to this review is considered confiden tial. and will be used only to confirm Ihalthe correct compensation rate levels are being used.

This type of review will be restricted to a maximum of once per owner per calendar year.

3. Any corrections which require payments to the Owner Operator in excess of $50 will be paid within 5 days of verification . All other amounts will be paid at the next compensation cycle.

POe 7

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