,.

BETWEEN:

Saturn Integrated Logistics Inc.

(the "Employer")

AND

United Food and Commercial Workers Union, Local 175

(the "Union")

COLLECTIVE AGREEMENT

EFFECTIVE: April 22, 2017 EXPIRES: January 31, 2020

2 Contents Article 1 - Purpose .......................................................................................................... 3 Article 2 - Recognition ..................................................................................................... 3 Article 3 -Union Security ................................................................................................. 4 Article 4- Union Stewards & Committees ......................................................................... 5 Article 5- Management Rights ........................................................................................ 6 Article 6 - Employee and union cooperation and human Rights ...................................... 7 Article 7- Strikes & Lock-outs .......................................................................................... 7 Article 8- Grievance Procedure ...................................................................................... 8 Article 9 - Arbitration ........................................................................................................ 9 Article 10 - Health & Safety ............................................................................................ 10 Article 11 - Leaves of Absence ............................................................................. , ........ 10 Article 12- Seniority .................................................................................................... ,.12 Article 13 - Vacancies .................................................................................................... 13 Article 14- Lay-off, Recall & Transfers ......................................................................... 14 Article 15 - Bulletin Board .............................................................................................. 15 Article 16 - General ........................................................................................................ 15 Article 17- Hours of Work & Overtime ........................................................................... 16 Article 18 -Wages & Classifications .............................................................................. 17 Article 19 - Vacation ....................................................................................................... 18 Article 20 - Boot Allowance ............................................................................................ 19 Article 21 - Public Holidays ............................................................................................ 19 Article 22 - Health & Welfare Benefits ............................................................................ 20 Article 23 -Temporary Workers ..................................................................................... 21 Article 24 - Duration ....................................................................................................... 22

RE: Memorandum of Agreement- Ratification Payment.. .................................. 23

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3 Article 1 - Purpose

1.01 The desire and purpose of this Collective Agreement is:

(a) to maintain and improve the harmonious relations and settle conditions of employment between the Employer and the Union and to secure prompt disposition of grievances; and

(b) to encourage efficiency in the operation; and,

(c) to provide satisfactory compensation, hours and working conditions; and,

(d) to promote the safety, morale, well-being and security of all employees in the bargaining unit of the Union.

It is recognized by this Agreement to be the desire of the Employer, the Union and the employees to co-operate fully, individually and collectively for the advancement of these conditions.

Article 2 - Recognition

2.01 The Employer recognizes the United Food and Commercial Workers Union Canada, Local175 as the bargaining agent of all employees of Saturn Integrated Logistics Inc. in the City of Toronto save and except office, sales, team leaders and persons above the rank of team leader.

2.02 The term "employee" as used in this Collective Agreement shall mean only those employees who are included in the bargaining unit, as described in Article 2.01 above. For the purposes of interpretation, whenever the feminine gender is used in this Collective Agreement, it shall be deemed to include the masculine, and the singular shall include the plural and vice-versa, wherever the context so requires.

2.03 The employees of the Employer not covered by the Agreement will not perform work normally performed by the bargaining unit employees, except:

(a) for the purpose of instruction or training; (b) performing audit functions; or, (c) on an occasional and necessary basis in a situation that arises from an

unforeseen event, including that caused by unanticipated absenteeism.

2.04 The use of temporary or agency workers to perform bargaining unit work shall be covered by Article 23.

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2.05 The Employer may continue to deal with employees on regular time off, operations, or other work related issues. The Employer shall not enter into any agreement or contract with those employees for whom the Union has bargaining rights, either individually or collectively, which violates any of the provisions of this Collective Agreement.

Article 3 -Union Security

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3.01 (a) Employees on the payroll of the Employer as of the date of ratification who are members of the Union in good standing must thereafter remain members of the Union as a condition of employment.

(b) The Employer shall remit to the Union, within fifteen (15) days following date of hire the United Food and Commercial Workers International Union Membership Application Form signed by the new employee.

3.02 (a) The Employer shall, during the term of this Collective Agreement, as a condition of employment, deduct from members of the bargaining unit on a bi-weekly basis, the regular weekly Union Dues and such Dues shall be remitted to the Union prior to the fifteenth (151h) day of the month following the month in which such deduction is made.

(b) The Employer shall collect membership initiation fees as may be established by the Union and forward these application forms and such fees to the Union with the regular monthly dues remittance.

3.03 The Union shall provide the Employer with thirty (30) days written notice of any increase or decrease in the amount of dues to be deducted from the bargaining unit employees.

3.04 The monthly remittance statement shall be provided on an Excel spreadsheet with the remittance cheque. A copy shall be emailed to remit@ufcw175.com. The spreadsheet will be in a format provided by the Union and will contain the following current information, as known to the Company:

1. S.I.N 2. Employee Number, if applicable 3. Full Name (Last/First/Initials) 4. Full address, including City and Postal Code 5. Telephone number (including area code) 6. Date of hire 7. Rate of pay 8. Classification

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5 9. Full time or part time designation 1 0. Union dues deducted (or the reason a deduction was not made) 11. Total dues deducted 12. Initiation fees deducted 13. Email address

3.05 The Employer agrees to record the annual Union dues for each employee on his T4 form.

3.06 It is expressly understood and agreed that the Union will save the Employer harmless and indemnify the Employer for any claim arising pursuant to any deduction made in Article 3.

3.07 The Employer agrees to acquaint new employees with the fact that a Union Collective Agreement is in effect and with conditions of employment set out in Article 3.01 and 3.02.

Article 4- Union Stewards & Committees

4.01 No individual employee or group of employees shall undertake to represent the Union at meetings with the Employer without proper authorization of the Union. In order that this may be carried out, the Union will supply the Employer with the names of its representatives.

4.02 A representative of the United Food and Commercial Workers Union or its International Affiliates may meet with an employee(s) or Steward(s) in the break room or training room to interview or generally service the membership provided that permission of the Employer is obtained upon arriving at the workplace and providing that such access does not disrupt the Employer's operations. Such permission will not be unreasonably withheld. If such Union Representative requests a visit to the warehouse to inspect working conditions, the Employer will provide an appropriate escort for the warehouse visit only. Such request will not be unreasonably denied.

4.03 The Union shall have the right to appoint or otherwise select three (3) Stewards and three (3) Alternate Stewards. There shall be one (1) Steward and one (1) Alternate Steward from each shift. All Stewards and Alternate Stewards must have completed their probation period. An Alternate Steward may only act in the absence of the Steward on his shift. The Employer shall only be required to deal with one steward in any meeting or for any issue.

4.04 The Union shall notify the Employer in writing the names of each Steward before the Employer shall be required to recognize any persons so selected.

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4.05 The Union acknowledges the Stewards have regular duties to perform on behalf of the Employer, and may not leave their regular work duties without the permission of their immediate Supervisor. Such consent from the Supervisor shall not be unreasonably withheld.

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4.06 The Employer will recognize a negotiating committee of a Representative of the United Food and Commercial Workers Union and up to three (3) employees who have completed their probationary period. The Union shall notify the Employer in writing of the names of the members of the negotiating committee and the Employer shall not be required to recognize any committee member until it has been so notified.

4.07 All time spent by employee members of the negotiating committee preparing for and attending at negotiations shall be unpaid time.

4.08 In any meeting called to issue a disciplinary documented verbal warning, written warning, suspension or discharge, the employee shall be entitled to the attendance of a Steward. The Employer will endeavour to ensure there is a Steward or Alternate Steward present.

4.09 When a disciplinary written warning, suspension or dismissal, is placed against the record of an employee, a copy of such written notation shall be delivered to the employee and to a Steward.

4.10 The Employer shall remove discipline from an employee's file if the employee has had a clean disciplinary record for eighteen (18) months from the date the discipline to be removed.

4.11 On commencing employment, the employee's supervisor shall introduce the new employee to the Union steward who will provide the new employee with a copy of the Collective Agreement.

Article 5 - Management Rights

5.01 The management of the company and its operations and the direction of the employees 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, efficiency, productivity, product quality and customer service, and in connection therewith, to make, alter and enforce from time to time reasonable rules and regulations, policies and practices to

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7 be observed by its employees, and to discipline or discharge employees for just cause;

(b) select, hire, train, transfer, promote, demote, classify, layoff and recall employees, select employees for positions excluded from the bargaining unit; and

(c) determine the schedules of operations, the number of shifts; determine the methods of production; determine job content, quality and quantity requirements, the qualifications of an employee to periorm any particular job and a method to assess that periormance; determine the equipment to be used and to use new or improved methods and equipment, to introduce, change or discontinue products, services, job duties or processes; determine employee dress code; determine employee work schedules, the number of employees needed at any time, the number of hours to be worked, starting and quitting times and when overtime shall be worked.

5.02 The Employer agrees that it will not exercise its functions in a manner inconsistent with the provisions of this Agreement and the written provisions of this Agreement constitute the only limitations on the Employer's rights.

Article 6 - Employee and union cooperation and human Rights

6.01 Every person has a right to equal treatment with respect to employment without discrimination because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, gender expression, age, record of offences, marital status, family status or disability as defined by the Ontario Human Rights Code. The parties agree to abide by the provisions of the Ontario Human Rights Code.

6.02 The parties agree to abide by the provisions of the Ontario Human Rights Code, the Occupational Health and Safety Act and any other applicable legislation with respect to workplace harassment.

Article 7 - Strikes & Lock-outs

7.01 The Employer and the Union agree to comply with the provisions of the Labour Relations Act prohibiting strikes and lockouts during the operation of a collective agreement.

7.02 The Employer agrees that there will be no lockouts whatsoever during the term of this Agreement.

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7.03 The definitions of the terms "strike" and "lock-out" as used in Articles 7.01 and 7.02 above shall be in accordance with the Labour Relations Act.

Article 8 - Grievance Procedure

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8.01 Any complaint, disagreement, or difference of opinion between the Employer and the Union, or between the Employer and an employee covered by this Collective Agreement which concerns the interpretation, application, operation or alleged violation of the terms and provisions of this Collective Agreement, may be considered as a grievance.

8.02 It is the mutual desire of the parties hereto, that complaints of employees shall be adjusted as quickly as possible. If an employee has an unsettled complaint regarding the interpretation, application, operation, or alleged violation of this Collective Agreement; then, the employee and his steward may take the matter up with his immediate supervisor. The supervisor shall provide a response within three (3) days. It is agreed that an employee has no grievance until he has first given the Employer an opportunity to address his complaint.

STEP 1 Failing settlement as above, the Union, steward and/or the employee shall submit the written grievance within seven (7) days of the date the employee ought to have been aware of the complaint. The grievance shall be submitted to the Operations Manager in writing on a form supplied by the Union. The Operations Manager shall issue a written response within five (5) days of receipt of the grievance.

STEP2 Failing settlement at Step 1, the Union Representative shall schedule a meeting with the General Manager of the Employer or his designate within seven (7) days of receiving the Step 1 response. The Union steward and/or the employee shall be present at such meeting. Upon completion of this meeting, the General Manager shall render his decision to the Union Representative in writing within five (5) days.

8.03 Group Grievance

The Employer will recognize a group grievance as one which affects more than one employee with respect to whom the issues and facts are substantially the same.

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9 8.04 Policy Grievance

Any differences arising between the Union and the Employer relating to the interpretation, application or alleged violation of the Collective Agreement may be presented by either party as a policy grievance within fourteen (14) days following the circumstances giving rise to the grievance. A policy grievance shall be submitted directly to Step 2. It is understood, however, that the provision so of this paragraph shall not be used with respect to a grievance directly affecting an employee(s) and that the regular grievance procedure shall not be bypassed unless the employee has refused to file a grievance within the prescribed time limits after being so requested by the Union and the alleged grievance directly affects the interest of other employees.

8.05 A claim by an employee who has successfully completed the probationary period that he has been unjustly suspended or discharged shall be treated as a grievance if a written statement of such grievance is submitted by the Steward at Step 2 within ten (1 0) days after the date of the suspension or discharge.

8.06 Any grievance which is not commenced or processed through the next stage of the grievance or arbitration procedure within the time limits specified herein shall be deemed to have been abandoned. Time limits can only be extended by the mutual written agreement of the General Manager or designate and the Union Representative.

Article 9 - Arbitration

9.01 Failing settlement under Step 2 of Article 8.02, the party seeking arbitration must provide written notification to the other party of the referral to arbitration within fourteen (14) days of the General Manager's Step 2 response. Only grievances between the parties arising from the interpretation, application, administration, or alleged violation of this Agreement, including any question as to whether a matter is arbitral, can be referred to arbitration.

9.02 Once such a written referral to arbitration is received, either party shall contact the other party in an attempt to agree on a single arbitrator. If the parties fail to agree on an arbitrator, the appointment shall be made by the Ministry of Labour for the Province of Ontario, on the request of either party. Each party shall bear the expenses of its participants and witnesses and for the preparation and presentation of its own case. The fees and expenses of the arbitrator and hearing room and any other expenses incidental to the arbitration hearing shall be shared equally by the parties.

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9.03 The arbitrator appointed shall hear and determine the matter and shall issue a decision which shall be final and binding upon the parties and upon any employee affected by it.

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9.04 The arbitrator shall have no authority to add to, subtract from, modify, change, alter or ignore in any way, the provisions of this Agreement or to extend its duration, unless the parties have agreed, in writing, to give the arbitrator specific authority to do so, or to make an award which has this effect. The arbitrator shall not be authorized to make any decision inconsistent with the provisions of this Agreement.

9.05 The parties agree that the time limits shall be binding unless extended by written agreement of the General Manager and Union Representative. If the grievance is not submitted to arbitration within the time limit referred to as above, it shall be deemed to have been abandoned.

Article 10 - Health & Safety

10.01 The Employer, the Union and the employees agree to comply with the provisions of the Ontario Occupational Health and Safety Act.

10.02 The Employer shall have the right to require that safety footwear and other safety items and equipment be worn, where applicable. The Employer shall provide a safety footwear allowance as specified in Article 20.01. In addition, where the Employer requires, it shall provide hard hat with visor, hearing protection, aprons, safety glasses, gloves, dust masks and high visibility safety vest.

Article 11 - Leaves of Absence

11.01 ESA Leaves Pregnancy, parental leave, emergency leave, family medical leave, or any other leaves of absence allowed by the Employment Standards Act, 2000, shall be granted by the Employer in accordance with the provisions of the Employment Standards Act, 2000, as amended.

11.02 Personal Leaves The Employer may grant an unpaid personal leave of absence to an employee who has successfully completed the probation period. The employee must make a written request to his supervisor for a personal leave not less than fourteen (14) days in advance of the leave. The request shall contain the reason for the leave, the length of the leave and the requested date that the leave will commence. No leave for a period of greater than sixty (60) days will be granted by the Employer. Emergency requests will be considered. The Employer will provide a

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11 response to the employee within five (5) days. Approval will not be unreasonably denied.

11.03 Union Leave An unpaid leave of absence to attend Union conventions and conferences may be granted to three (3) employees for a period not exceeding ten (1 0) days in any one calendar year. Despite this, in no case shall the Employer be required to grant a leave if it will result in more than one (1) employee from the same job classification per shift being absent due to such leave. Applications for such leaves of absence shall be made by the Union in writing at least four (4) weeks prior to the requested leave. Employees on such leave will be maintained on applicable benefit plans, provided that the employees continue any obligations they may have pursuant to such plans. An employee elected or appointed to a paid full-time position within the Union, shall be granted a leave of absence without pay or benefits for one (1) year.

11.04 Employees who are on leave pursuant to this Article 11 shall retain and accumulate seniority while on any leave of absence.

11.05 Jury Duty When an employee, who has completed his probationary period, is required to serve on a jury or is subpoenaed as a Crown witness in a criminal court or Coroner's inquest, the Employer will pay the difference between pay received for Jury Duty or a subpoenaed Crown witness and his regular straight time rate of pay for scheduled hours of work missed while present in court. Entitlement to payment is conditional upon the employee furnishing verification of jury duty or subpoenaed Crown witness service and the pay received. It is the Employee's responsibility to come to work at any time that he is not required to be present in court except where less than two (2) hours remain in the shift.

11.06 Bereavement Leave When an employee suffers the bereavement of a member of his immediate family, he shall be allowed three (3) consecutive days bereavement leave with lost wages at his regular straight time rate of pay. The day of death or day of funeral shall be one such day. Immediate family shall include mother, father, current mother/father-in-law, brother, sister, spouse, children and grandchildren. Mother shall be interpreted to include step-mother, father to include step-father, children to include step-children and legally adopted children, brother to include step-brother, sister to include step-sister. When an employee suffers the bereavement of a member of his family, he shall be allowed one (1) day bereavement leave with lost wages at his regular straight time rate of pay to attend the funeral. Family shall include grandparents, direct

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12 nieces/nephews, direct aunts/uncles, current daughter/son-in-law and current brother/sister-in-law.

Article 12- Seniority

12.01 (a)

(b)

(c)

Seniority shall mean the length of continuous employment in the bargaining unit with the Employer and shall include service with the Employer prior to certification or recognition of the Union.

There shall be separate seniority for full time and part time employees. If a part time employee becomes full time, his seniority date shall be recognized as his full time date of hire. If a full time employee moves to part time status, his part time seniority date shall be from his original date of hire. A part time employee cannot use seniority for the purposes of displacing a full time employee.

Service shall be defined as length of continuous employment with the Employer.

12.02 The parties agree with reference to probationary employees, that;

(a) Probation for Newly Hired Employees A newly hired employee shall be on probation only for a period of sixty-six (66) days worked. During the probationary period an employee shall be considered as being employed on a trial basis and may be dismissed at the sole discretion of the Employer. Any termination occurring during the probationary period shall be deemed to be just cause for termination or release without notice and shall not be the subject of a grievance and/or arbitration. After completion of the probationary period, seniority shall be effective from the employee's date of hire.

(b) Under no circumstances will an employee be required to serve a second probationary period.

12.03 Within thirty (30) days of ratification and on January 15th and July 15th of each year thereafter, the seniority list, including the employee's seniority date, service date and employment status (full time or part time) shall be posted at the communication alley at the front entrance of the plant by the Employer and a copy emailed to the Union. Such posted seniority list must be maintained until it is replaced by a subsequent posting of a new seniority list. Once posted, if no grievance is filed within forty five (45) days, the list shall be deemed to be correct.

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13 12.04 An employee who accepts a transfer or promotion out of the bargaining unit shall

retain any seniority acquired to the date of such appointment but will not continue to accrue seniority. However, such seniority shall be lost if the employee does not return to the bargaining unit within one (1) year from the date of such appointment.

12.05 Each employee shall notify the Employer of his address and phone number. It shall be the responsibility of each employee to notify the Employer of any change of address or telephone number. Letters couriered by the Employer to the address on record will be deemed to be received by the employee and shall satisfy any obligation on the Employer to provide notice to the employee under any provision of this Agreement.

12.06 An employee's seniority and employment shall be deemed to have terminated if the employee:

(a) is discharged for just cause and is not reinstated through the grievance and arbitration procedure or otherwise;

(b) resigns;

(c) fails to report for work within five (5) working days after being recalled by registered letter or courier from the Employer following lay-off, or fails to report for work on the date and the time specified in the notice;

(d) retires; (e) fails to return to work on the date agreed upon after the completion of a

leave of absence unless the employee establishes he was unable to return;

(f) uses an approved leave of absence for purposes other than those given as the reason for the leave;

(g) is absent three (3) consecutive work days without notifying his immediate supervisor, unless the employee establishes just cause; or,

(h) is on lay-off and does not perform work for the Employer for a period of six (6) consecutive months.

Article 13- Vacancies

13.01 If the Employer elects to fill a permanent vacancy in a bargaining unit position, it shall be posted for a period of seven (7) days. The notice shall set out a description of the job, the qualifications required of applicants of the job, the hours of work (shift) and the wage rate for the job. Any employee who is absent at the time of a posting who has submitted a written request to the General Manager prior to the absence, shall be considered for job postings identified in his written request during that absence. The Employer can fill the position at its

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14 discretion during the posting and selection process or while waiting for a selected absent employee who has followed this process to return from leave. Any successful applicant shall be put into the position within ten (1 0) days of the posting being taken down unless the successful applicant is on a leave.

13.02 When filling any posting under this Article, the Employer will consider the employees' performance, ability and skills. If the Employer considers two (2) employees relatively equal on these factors, it shall select the senior such employee. If none of the employees who apply for the posting are qualified to perform the position, the Employer may elect to hire a new employee to fill the position.

13.03 An employee promoted or transferred to a new position within the bargaining unit shall serve a trial period for up to ninety (90) days worked in the new position. If the employee is unable during this period to meet the requirements in a manner satisfactory to the Employer or the employee finds the job unsatisfactory he will be returned to the former position, without loss of seniority, and at the former hourly rate. Any other employee promoted or transferred because of the rearrangement of positions shall be returned to his former position without loss of seniority and at the former hourly rate. While the employee shall serve a trial period of up to ninety (90) days worked in the new position, the Employer is not obligated to keep the employee in the new position for ninety (90) days worked. If the employee is not meeting the requirements in a manner satisfactory to the Employer, the Employer may return the employee to his former position prior to the expiry of the ninety (90) days in accordance with this Article.

13.04 It is understood that Article 13.03 does not create a right to a training or familiarization period. That is, in order to be awarded a posted vacancy the employee must be fully capable of performing the job at the time of the posting without any familiarization or training period.

13.05 It is agreed that successful applicants for a posting shall not be entitled to apply for another job for a period of six (6) months, except if a new job is created or if he exercises bumping rights under Article 14.

13.06 Promotions or transfers to positions outside of the bargaining unit shall not be subject to the provisions of this Agreement.

Article 14- Lay-off, Recall & Transfers

14.01 If a layoff which is expected to exceed seven (7) calendar days occurs, an employee shall have the right to bump another employee with less seniority,

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provided that the employee has the ability to perform the work for the position into which he is bumping.

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14.02 If an employee exercises his right to bump in accordance with this Agreement, the employee shall be re-classified and paid at the rate of the position he bumps into according to his seniority. In this case, the employee will be placed in the appropriate classification on the wage grid according to his seniority and will continue to progress on that grid according to his seniority.

14.03 In the event of a recall, employees shall be recalled in the order of their seniority, where jobs become available, provided they have the ability to perform such work. The Employer shall give notice of recall by courier to the last recorded address of the employee.

14.04 No new employees shall be hired until those laid off have been given the opportunity of recall.

Article 15- Bulletin Board

15.01 The Union will have full and complete access to a Union Bulletin Board for the exclusive use of posting meeting notices or events. Any material outside of meeting notices or events will be subject to approval of the General Manager within twenty-four (24) hours of receipt. Such approval will not be unreasonably denied.

Article 16 - General

16.01 Any reference in this Agreement to a number of "days" shall refer to calendar days unless otherwise specified.

16.02 Adequate rest rooms shall be provided and kept heated and ventilated and in a sanitary condition. The employees shall cooperate with the Employer in keeping the rest rooms in a clean and sanitary condition. Lockers will be supplied to all workers who request one.

16.03 The Employer shall pay one half of the cost of printing this Collective Agreement.

16.04 The Employer will pay for medical certificates for independent medical evaluations required by the Employer. ·

16.05 Correspondence All correspondence arising out of, or incidental to the Collective Agreement, shall pass between the Personnel Department of the Employer and the Union

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Representative of the United Food and Commercial Workers Union or its International affiliates, unless otherwise herein specified.

16.06 Payroll Error

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Should an error of greater than seventy-five (75) dollars occur in an employee's pay, attributable to the Employer, the Employer agrees to correct the error no later than five (5) business days after the error was brought to the Employer's attention in writing.

16.07 The Employer shall select a location and pay the cost for the meeting rooms on the days of negotiations.

Article 17 - Hours of Work & Overtime

17.01 The regular work week for full time employees shall be no more than forty (40) hours worked each week, with up to five (5) days worked and two (2) consecutive days off. The regular work week for part time employees shall be no more than twenty-four (24) hours worked each week. Nothing in this Article shall be construed as a guarantee of hours of work per day or per week.

For clarity: the Employer has no intention at the time of the signing of this Collective Agreement to alter, amend or otherwise adjust the work schedule. If the Employer will make schedule changes, it will consult with the Union to discuss possible solutions to minimize disruption to the employees.

17.02 All overtime work performed by an employee beyond forty (40) hours worked per week shall be paid at the rate of time and one-half (1-1/2) the base hourly rate. For calculation of overtime, the work week begins on Sunday at 11 pm.

17.03 Overtime work shall be on a voluntary basis. Overtime on a regular day of operation can be required before or after a shift due to operational requirements. The Employer may offer overtime work before a shift by calling employees in order of seniority at the phone number provided by the employee. Overtime after the end of a shift shall be offered by seniority to those on shift who were performing the work required on overtime. If not enough employees volunteer for overtime, the employees with the least seniority within the classification who are at work on the normal shift, shall be required to work the overtime. For overtime shifts scheduled on days not normally days of operation, overtime shall be offered by seniority to those with the skill and ability to do the required work. Employees may only work one (1) overtime shift in a day. If there are insufficient volunteers, employees with the least seniority within the classification required for the overtime work, shall be required to work the overtime.

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17 17.04 For shifts of five (5) hours or more, employees will be entitled to one fifteen (15)

minute paid break and a twenty five (25) minute paid meal break. If overtime is scheduled following an employee's shift, the employee shall receive a ten (1 0) minute paid break for each two hours worked on such overtime.

17.05 The Employer will not require an employee to work a split shift without the employee's agreement.

17.06 (a) A shift premium shall be paid to employees regularly scheduled to the afternoon shift of sixty cents ($0.60} per hour worked on that shift. An afternoon shift is a regular shift that begins between 2 p.m. and 10 p.m. An afternoon shift employee called in early by the Employer before the shift or staying to work after the shift shall continue to receive the afternoon shift premium.

(b) A shift premium shall be paid to employees regularly scheduled to the night shift of seventy cents ($0.70) per hour worked on that shift. A night shift is a regular shift that begins between 10 p.m. and 3 a.m. A night shift employee called in early by the Employer before the shift or staying to work after the shift shall continue to receive the night shift premium.

17.07 The Employer will post a schedule by the punch clock showing regular scheduled hours for each employee covered by the Collective Agreement.

17.08 For a night shift, the day of the shift shall be declared as the day on which the shift ends. The remainder of the shift on the previous day shall not be considered time worked on that day.

Article 18 - Wages & Classifications

18.01 The Employer agrees to pay and the Union agrees to accept the following hourly rates of pay. Each employee shall receive an itemized pay statement of his or her wages, overtime and deductions. Wages shall be paid either weekly or bi-weekly at the Employer's election based on its payroll practice. The Employer may not make deductions from wages unless authorized by statue, arbitration award, court order, employee authorization or this Collective Agreement.

Operator, Utility, Traffic Clerk, HSIL Operator,

I Control

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18 18.02 The above rates will be increased by 2.0% effective the beginning of the first full

pay period after ratification.

18.03 The rates as increased in article 18.02 will be increased by 2.0% effective the first day of the first full pay period in March 2018.

18.04 The rates as increased in article 18.03 will be increased by 2.0% effective the first day of the first full pay period in March 2019.

18.05 Where a new job is established the appropriate classification and rate of pay shall be negotiated between the Employer and the Union. Failing agreement the dispute may be the subject of a grievance and may be referred to arbitration in accordance with Article 9. The arbitrator will have the power to determine the appropriate classification and wage rate.

18.06 An employee who is temporarily assigned to a higher paying classification for a period of more than four (4) hours shall then be paid the rate for that higher classification. An employee who is temporarily assigned to a lower paying classification shall continue to be paid the rate of his regular job.

Article 19 - Vacation

19.01 The Vacation year shall be from January 1st, to December 31st.

19.02 Full-time employees with at least ten (1 0) months of service on December 31 shall receive ten (1 0) days of vacation in the next calendar year. A full-time employee with less service will have a pro-rated amount of vacation of point eight three (0.83) days per month of full-time employment. Vacation pay shall be paid at 4% of his gross earnings in the previous calendar year.

19.03 At the start of the calendar year following the year in which the full-time employees achieves five (5) years of service he shall be entitled to fifteen (15) days of vacation paid at six per cent (6%) of his gross earnings in the previous calendar year. Each year thereafter, the full-time employee will receive an additional day off with pay (eight (8) hours paid for each additional day at the current rate of pay) until such employee achieves ten (1 0) years of service to a maximum of twenty (20) days.

19.04 At the start of the calendar year following the year in which the full-time employees achieves ten (1 0) years of service he shall be entitled to twenty (20) days of vacation paid at eight per cent (8%) of his gross earnings in the previous calendar year.

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19 19.05 (a) An employee who terminates his employment for whatever reason, shall be

paid his vacation pay as provided herein.

(b) On the death of an employee, the vacation pay earned and not paid to that point, will be paid to the employee's estate forthwith.

19.06 An Employee shall not be permitted to accumulate his vacation from one calendar year to another.

19.07 Vacation schedules shall be posted by May 1st each year and shall not be changed unless mutually agreed by the employee and the Employer. The time of vacations will be arranged between employees and their respective Supervisors, and the choice of vacation times shall be in accordance with seniority. An employee shall receive an unbroken period of vacation unless otherwise mutually agreed by the employee and the Employer.

19.08 Vacation must be taken in the year that it is awarded.

19.09 Employees will continue to receive pay on the scheduled payroll dates while on vacation, provided they have sufficient vacation pay accrual.

Article 20 - Boot Allowance

20.01 Each calendar year, the Employer will reimburse each employee who has completed his probationary period, up to one hundred and seventy-five ($175.00) dollars towards the purchase of his safety footwear in that calendar year. The safety footwear must be CSA approved green triangle boots with a minimum 6" ankle protection. The employee must supply an original receipt for proof of purchase. Any unclaimed amounts cannot be carried forward into another year. Employees may use up to $75 of their team wear allowance for the purchase of safety boots. The Employer shall pay within twenty-one (21) days of receipt of the appropriate documentation under this article.

Article 21 - Public Holidays

21.01 The following shall be recognized as holidays:

New Year's Day Family Day Good Friday Victoria Day

Canada Day Civic Holiday Labour Day Thanksgiving Day

Christmas Day Boxing Day

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21.02 In order to be eligible for holiday pay, an employee must work his entire scheduled working day immediately preceding and his entire scheduled working day immediately following the holiday, unless he establishes a valid reason to be absent.

21.03 Eligible full-time employees shall be provided with holiday pay at their regular straight time rate of pay for the hours they would normally work on the holiday. Eligible part-time employees will receive holiday pay calculated in accordance with the ESA.

21.04 If any of the above mentioned holidays occurs during an employee's regular day off, then the holiday will be declared as the employee's first regular shift immediately following the holiday.

21.05 If any of the above mentioned holidays occurs during an eligible employee's vacation period, the employee will receive an additional day off with pay to be added on to his vacation period.

21.06 Eligible employees who are required to work on the day declared as the holiday will receive pay one and one half (1 %) times their regular straight time rate of pay for all hours so worked in addition to the holiday pay.

21.07 An employee who is on layoff, leave of absence or receiving Workers' Compensation shall not be eligible for holiday pay.

Article 22 - Health & Welfare Benefits

22.01 The Employer will provide certain Group Insurance Coverage to employees beginning the first of the month following completion of their probation period. The particulars of this Group Insurance are set out in a booklet provided to the employees. All of the insurance shall be as specifically described and set forth in the policy or policies of insurance, and the benefits provided by the Employer shall be read subject to the terms and conditions of such policy. Any dispute over payments of benefits under such policies shall be adjusted between the insured, or the beneficiary under any such policy, and the insurance provider. So long as the Employer provides such insurance and pays its premiums as identified in the policy, no grievance shall lie against the Employer in the event of any such disputes. To maintain benefits, the employee must pay premiums for those benefits selected in addition to that provided by the Employer. Optional coverages may include extended medical, dental, optical, short and long term disability and life insurance.

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The parties may agree, during the term of this Agreement, to review other options with respect to benefit coverage.

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22.02 The Employer shall not make any changes to the benefit plans unless such changes are made on a plan-wide basis. The Employer further agrees to notify the Union of any plan changes sixty (60) calendar days prior to the changes being implemented. The Employer will, on an annual basis, meet with the Union committee with the sole purpose of providing a detailed update and overview of the state of the plans including any changes to the plans that are being implemented.

22.03 Provided the Government of Ontario does not initiate a new required pension arrangement, the Employer will continue a Group Defined Contribution Pension Plan as provided in the Plan Statement and applicable booklet. The Plan Statement shall be the ruling document in the event of any dispute regarding the plan or employee investments.

22.04 Employees can access information related to the benefit program on line at mybesecure.com.

Article 23 -Temporary Workers

23.01 The Employer may continue to use temporary or agency workers ("Temporary Worker''). The use of Temporary Workers will be subject to the following:

(a) Temporary Workers shall not be used to perform work in the Clerical, HSIL, or MHE driver positions.

(b) Temporary Workers shall be paid the start rates in the classification in which they are working.

(c) Temporary Workers shall not be used if it would cause the layoff, or prevent the recall, of a bargaining unit employee.

(d) Each Temporary Worker will not continue to perform bargaining unit work for more than sixty-six (66) days worked at any time. If a Temporary Worker does perform such work for more than sixty-six days, the Employer agrees to hire the Temporary Worker as a Bargaining Unit Employee.

(e) The Employer will email a monthly report to Union Servicing Representative. This report shall contain the names of each Temporary Worker and the number of hours worked by that Temporary Worker.

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(f) The number of Temporary Workers shall not exceed 20% the total number of hourly workers (both bargaining unit employees and Temporary Workers) unless the Temporary Workers are to be used:

1 . to satisfy short term customer demands lasting less than 90 days; 2. for seasonal use to allow for vacations for bargaining unit employees;

or, 3. for a specific project not to exceed 90 days.

Article 24 - Duration

24.01 This Collective Agreement shall remain in force and effect from the date of ratification until January 31, 2020, and until all provisions of the Labour Relations Act have been expended.

This Agreement shall remain in full force and effect thereafter from year to year unless notice of desire to modify, amend or terminate is given in writing by either party to the other party at any time within ninety (90) days prior to the expiry of this Collective Agreement. The parties shall meet within fifteen (15) days of such notice being received.

The Parties agree to sign the Collective Agreement within thirty (30) days of ratification by the Union.

Signed in the City of _____ this_ day of _____ , 201_.

For the Union For the Employer

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23 BETWEEN:

Saturn Integrated Logistics Inc.

(the "Employer")

AND

United Food and Commercial Workers Union, Local 175

(the "Union")

RE: Memorandum of Agreement- Ratification Payment

Provided the Collective Agreement is ratified by April 22, 2017, the Employer shall pay eligible bargaining unit employees $0.40 (forty cents) for each hour worked from February 1, 2017 to the date of ratification plus a lump sum payment of $325. For example, if the employee worked 40 hours each week from February 1, 2017 to the date of ratification he would receive approximately $500, less statutory deductions, depending on the day of ratification and number of overtime hours worked.

To be eligible for a ratification payment, the employee must be employed in the bargaining unit on April 10, 2017 and continue to be so employed on the day of ratification.

Temporary Workers are not employees of Saturn and will therefore not receive this ratification payment.

The above calculated payment will be reduced by the applicable statutory deductions.

For the Union For the Company

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