c a n a d a

ABZAC CANADA INC.

FORT FRANCES, ONTARIO

10/1108 THROUGH 9/30/12

Fort Frances, OntaTio 09/12/08 1

Table of Contents

Article Page

1 Preamble 3

2 Recognition 3

3 Non-discrimination 3

4 Management's Rights 4

5 Union Seniority 4

6 Check-off 5

7 Union Committee 5

8 Grievance Procedure 5

9 Arbitration 6

10 Hours of Work '7

11 Reporting Allowance/Call-in 9

12 Meal Allowance 9

13 Probationary and Temporary Employees 9

14 Seniority 10

15 Job Advancement 12

16 Holidays 12

17 Vacations 14

18 Memorial Leave 15

19 leave of Absence 16

20 Safety and Health 16

21 Temporary Transfer 17

22 Attendance 17

23 Working Foreman 1'7

24 Health and Welfare Benefits 18

25 New or Changed Jobs 18

26 No Strikes -· No lockouts 18

27 Past Practices 18

28 Separability 19

29 Mutual Promises 19

30 Term of Contract 19

Schedule "A" -Wages ~ 20

Schedule " B " ·-· Benefits 21

Schedule " C " - Pension 23

Schedule "D "-·· Letters of Understanding 24-27

Schedule "E " ····Performance Bonus 28

fort Frances, Ontario 09/12/08 2

AGREEMENT

THIS AGREEMENT is made and entered into by ABZAC CANADA INC , (FORT FRANCES OPERATIONS), herein after referred to as the Company; and the COMMUNICATIONS, ENERGY AND PAPERWORKERS UNION OF CANADA and its LOCAL 324-6 members who are Abzac Canada Inc (Fort Frances Operations) employees, herein after referred to as the Union

ARTICLE 1 .. PREAMBLE

Section 1 .01 - The following Articles set forth the parties full and complete and only agreement regarding collectively bargained matters This Agreement is intended to promote the interest of both parties by helping assure that certain work at the location is performed as efficiently and productively as possible. Control and reduction of unnecessary costs is necessary to the interests of both parties Only through maximum productive effort can members of the Collective Bargaining Unit help assure that they have continuing employment but that is not guaranteed in any way by this Agreement

Section 1 02 ·· It is in the mutual interest of the Company, the Union, and the Employees to establish and maintain an employment atmosphere which helps assure the Company's products are manufactured at highest quality, lowest cost, most efficient production rates Action by any employee or the Union which does not do that is not authorized by this Agreement

ARTICLE 2 • RECOGNITION

Section 2 01 ·· The Company recognizes the Union as the sole Collective Bargaining representative of the employees for whom it was certified by the Ontario Labor Relations Board on December 10, 1999, to wit:

"Communications, Energy and Paperworkers Union of Canada as the Bargaining agent of all employees of Abzac Inc .. (Fort Frances Division) in Fort Frances, Ontario, save and except supervisors and persons above the rank of supervisor, office and sales staff, persons regularly employed for not more than 24 hours per week and students employed during the school vacation period."

The terms of this Agreement apply to those persons the Union is certified to represent Use of the word "employee" herein shall apply only to those persons

ARTICLE 3 ·NON-DISCRIMINATION

Section 3 01 - Use of any personal pronoun herein shall be interpreted to apply equally to individuals of either sex

3 02 The provisions of this Agreement shall be applied to all employees without discrimination for reasons of race, creed, colour, age, sex, marital status, nationality, ancestry or place of origin, political affiliation, religion, sexual orientation, physical handicap, pregnancy, or a conviction for which a pardon has been granted

3 03 The parties also agree that there shall be no harassment of any kind against an

Fort Frances, Ontario 09112/08 3

employee

3 04 The employer agrees that there shall be no discrimination because of union activity or membership in the Union

ARTICLE 4 ··MANAGEMENT'S RIGHTS

S_E2c;1LQO'LQ1 , (a) The right to hire and manage the workforce and to maintain order and efficiency is the exclusive responsibility of management, provided there is no conflict with the terms of this agreement The right to discipline and discharge for just cause is likewise the exclusive responsibility of management, provided that claims of unjust discipline or discharge shall be subject to the grievance procedure herein provided.

(b) The Employer has the right to operate the business on a profitable basis and to make and implement reasonable rules and regulations, with discussion with the Union prior to the

implementation, in connection with the business Any changes to such rules and regulations made by the Employer must be previously discussed with the Union and shall not be in conflict nor inconsistent with the provisions of this agreement

(c) The Employer agrees to exercise its managerial right and function in a manner that is fair, reasonable, and consistent with the provisions of this agreement

Section 4. 02 - The Employer agrees that the above rights are to be exercised subject to the applicable provisions of this agreement including the grievance procedure and the Union

agrees that the express provisions of this agreement constitute the only limitations to the rights of management

Section 4.03 . The Employer and Union agree that when overtime is required or in emergency situations, staff personnel may be required to perform bargaining unit work Each situation will be assessed and if the emergency work duration is over one half ( 1/2) hour per

day, unionized members of Abzac will be called in, in accordance with article 10 01 Any duration of work on an emergency basis done by staff will be documented and the

information supplied to the union stewards for this local

ARTICLE 5 · UNION SENIORITY

Section 5 01 - It shall be a condition of employment that all employees covered by this

Agreement who are members of the Union in good standing on the effective or execution date of this Agreement, whichever is later, shall remain members in good standing, and those who are not members on the referenced date, shall, upon completing their probationary period following the effective date or execution date of this Agreement, whichever is later, become and remain members in good standing in the Union It shall also be a condition of employment that all employees covered by this Agreement and hired on or after the effective or execution date of this Agreement, whichever is later, shall, upon completion of their pmbationary period, become and remain members in good standing in the Union

fort Frances Ontario 09112108 4

ARTICLE 6 - CHECK-OFF

Section 6 01 - The Company agrees to make payroll deductions of regular monthly

membership dues from the pay of each employee Union dues will be submitted to the

Local's office by the fifteenth ( 151h) of the following month in which the dues are collected.

Section 6 02 - The check--off dues and list will be sent to the Local's office at: CEP Local 324, Box

148, Dryden, Ontario, P8N 2Y7

- -. -

Section 6 03 - The Union will indemnify, defend, and save the Company harmless from any and all

claims, suits, demands, or other allegations regardless of nature or source arising because of action

taken or not taken by the Company in interpreting and/or applying this check-off Article or any

written instructions from the Union regarding check-off

Section 6.04 -(A) It is understood that newly hired employees pay Union dues from their date of hire as a

probationary employee forward The Company agrees that the Union's initiation fees will be

deducted on pay weeks in which the Union dues are not deducted

(8) The Union will supply the company with application cards, for new Union employees, at the

completion of their probationary period, who will forward them to the Union with the check-off Jist for

each month Employees, completing their probationary period must sign an application card ..

Section 6 05 - Any change in the method or manner of calculating the amount of dues which the

Company is to deduct from any employees' pay, shall not be effective unless the Union notifies the

Company not less than thirty (30) days in advance in writing .. If our system changes we reserve the

right to review the system of calculating dues to reach a mutual agreement

Section 6 06- The Company agrees to include the Union dues in all income tax slips (T-4) in the

appropriate box (presently #44)

ARTICLE 7- UNION COMMITTEE

Section 7 01 - The Company shall recognize a Negotiating Committee comprised of two Stewards

elected by and from among employees One Steward shall be designated Chief Steward The

Union shall notify the Company of the persons so elected, and designated, as soon as practical

after their election and/or designation

If the Stewards lose time from work for purposes of meeting with the Company because of

negotiations or grievances they shall be paid for it at their regular straight time hourly rate of pay

ARTICLE 8 - GRIEVANCE PROCEDURE

Section 8 01 - Should a dispute arise between any employee and the Company concerning the

interpretation or administration of any term of this Agreement, such dispute shall be resolved by

application of the procedure specified below

Section 8 02 -- No dispute can be started in this grievance procedure unless the affected employee

shall have first given his supervisor an opportunity to adjust the employee's complaint except that

disputes regarding an employee's discharge shall be initiated in writing at Step 1, below:

fort Frances, Ontario 09!12/08 5

Section 8 03 -

STEP 1 ·

STEP 2-

STEP 3-

If the matter is not resolved upon completion of this Section the

employee shall, within three (3) working days of the dale of

occurrence of the circumstances giving rise to the grievance, present

the dispute in writing to the Plant Manager The Plant Manager shall

give his written answer within three (3) working days of receiving the

grievance

If the matter is not resolved upon completion of Step 1 it can be

processed further, if the Collective Bargaining Unit's Chief Steward

shall, within three (3) working days after the Company's Step 1

answer, give the Plant Manager written notice specifying the

unresolved issue, stating the remedy desired, and requesting a

meeting with the Union's Business Representative and the Plant

Manager, or their designated representatives at the first available

mutually agreeable dale

The Union's representative shall also telephone the Plant Manager

within three (3) working days and suggest several meeting dales all

within three weeks of the Company's Step 1 answer

The Plant Manager and the Union's Business Representative or their

designated representatives shall mutually agree to a meeting date

After the meeting the Company shall give its written answer within five

(5) working days unless it needs additional time in which case it shall

notify the Union of the expected reply dale not to exceed fifteen (15)

working days

If the matter is not resolved upon completion of Step 2 it can be

referred to Arbitration by a Single Arbitrator, if the moving party shall

within five (5) working days after completion of Step 2, give written

notice to the other party of its desire to arbitrate the issue, and at the

same time begin the process specified in the Arbitration Article, below

Section 8 04 ·· Time limits expressed herein regarding grievance initiation and processing shall be

complied with and failure of the moving party to meet lime limits shall bar any grievance from further

consideration Time limits can be extended by mutual agreement of the parties but there shall be no

allegation of time limit waiver unless same can be sustained by a written agreement signed by the

Union and Company, extending a particular time limit for a particular case

Section 8.05 - Grievance regarding disciplinary discharge of any employees shall be submitted

initially at Step 1, above

ARTICLE 9 - ARBITRATION

Section 9 01 - Upon written notice of either party to the other of the moving party's desire to submit

an issue to Arbitration, given as required by the terms of the above grievance procedure and within

five (5) working days of the Company's Step 2 answer, the moving party shall notify the Ontario

Labor Relations Board, in writing, of the dispute and request the Minister of Labour to appoint a

Fort frances, Ontario 09112/08 6

single experienced impartial Arbitrator to hear the case A copy of said notice shall be given to the

other party

Upon receipt of the Minister of Labor's appointee's name either party can reject the appointee and

request another appointee by the Minister of Labor all to be done, in writing, with a copy to the other

party, within ten (10) working days of receiving the Minister's appointee's name

The option to reject an appointee may be exercised not more than twice in any Arbitration case by

either party

The selected Arbitrator shall proceed to set up a date, time and place of hearing agreement to the

parties Upon completion of the hearing the Arbitrator shall render his decision within thirty (30)

calendar days, in writing, to the parties

Section 9 02 ·· No person who was involved in the grievance hearing process shall serve as

arbitrator on a case, and no employee of either party shall serve as arbitrator either

Section 9 03- The arbitrator(s) shall be empowered, except as limited below, to make decisions in

grievances

(A) He shall have no power to add to or subtract from or modify any of the terms and

conditions of this Agreement unless the parties grant him this authority in writing

(B) He shall have no power to establish wage scales or change wages which appear in

Schedule "A"

(C) He shall, in discipline cases, not substitute his judgment for that of the Company

unless he finds the Company exercised its judgment in an arbitrary manner.

(D) He shall not order or require the Company to pay back wages for any period, greater

than three (3) days, prior to the date the grievance was filed with the Company

(E) His award of back wages shall be limited to the amount of wages the employee

would otherwise have earned from his employment with the Company during the

period as defined, less any compensation received by the employee during that

period, or such Jesser amount as deemed appropriate by the arbitrator, and in no

case shall he make any award of any kind greater than that amount

ARTICLE 10 ··HOURS OF WORK

Section 10 01 -The normal workday will consist of eight (8) hours or ten (10) hours per day and the

work week will consist of forty (40) hours per week beginning at 12:01 a.m .. Sunday or at the

beginning of the first shift which is regularly scheduled to start work on Sunday and that work week

shall end seven (7) days later

A two (2) week notice will be given to Winding crew employees when workday duration will

change from 8 to 10 hours orfrom 10 to 8 hours.

There shall also be a reasonable expectation that longer or shorter hours may be necessary per

day or week, in which case the company will give as much advance notice of these circumstances

as is practical If the employee is unable to work longer hours due to circumstances beyond their

control, there will be no reprimand~ The company shall first assign volunteers who are qualified to

r:ort Frances, Ontario 09/12/08 7

perform the work A weekly volunteer list for· overtime will be posted If the company cannot obtain

sufficient volunteers, overtime shall be assigned in reverse order of seniority among those

employees qualified to do the work

Section 10 02 - For purposes of determining rates of pay for time worked, and for other pay based

on regular straight time rate of pay, the wages listed in Schedule "A" hereof shall apply during

normal wor·k day and work week hours

Time and one-half the regular straight time hourly rate will be paid for all work performed in excess

of the regular workday, or regular workweek - -

Section 10 03 - There shall be no pyramiding or compounding of rates of pay permitted under the

terms of this Agreement

Section 10 04 - Work performed by an employee on a holiday shall be paid at one and one-half the

employee's regular straight time hourly rate of pay, in addition to holiday pay to which the employee

is otherwise qualified

Section 10 05 - An employee who agrees or is assigned to work on a holiday but fails to show up

shall forfeit any holiday pay to which he is otherwise eligible, unless failure to work is for compelling,

documented unavoidable reasons acceptable to the Company Any reasonable costs for requested

documentation will be paid by the Company.

Section 10 06 - The Company will give as much advance notice of required overtime work as is

practical

Section 10.07- There shall be a sixty cent ($0.60) per hour shift differential paid for each hour

worked as part of an afternoon shift

Section 10 08 .. If the duration of a scheduled eight ( 8) hours shift exceeds eight (8) hours and not

less than nine ( 9 ) hours, a fifteen ( 15 ) minutes rest period will be given at the end of the regular

shift, ten (10) hours would have two (2) breaks and twelve (12) hours would have three (3) breaks.

All breaks will be scheduled to permit a reasonable duration oftime between them

If the duration of a scheduled ten (10) hours shift exceeds ten (10) hours and not less than eleven

( 11) hours, a fifteen ( 15) minutes rest period will be given at the end of the regular shift, twelve ( 12)

hours would have two (2) breaks All breaks will be scheduled to permit a reasonable duration of

time between them

Section 10 09- Employees shall be allowed a paid half (1/2) hour lunch break for a scheduled eight

U)_) hours shift and a paid forty five ( 45) minutes lunch break for a scheduled ten ( 10 ) hours shift

at intervals that will result in the employees working no more than five (5) consecutive hours without

an eating period

Section 10 10 - Prior to making any changes in shifts and start times, the Company agrees to

discuss such changes with the Union

Section 10 11 . Overtime worked on Labor Day & Christmas Day is at triple time and one-half (3Yz )

Fort hances, Ontario 09/l2i08 8

ARTICLE 11 · REPORTING ALLOWANCE I CALL-IN

,r Section 11 01- An employee who reports for their scheduled shift will be provided with four (4) hours

D"u' work or four (4) hours pay for an eight ( 8 ) hours scheduled shift and . five (5) hours work or five (5)

hours pay for a ten ( 10) hours scheduled shift In the event that the employer cannot provide a

complete day of work due to mechanical breakdown, Act of God, Utility failure, he can shorten the

work day and reschedule lost hours in agreement with the employee in order to guarantee the

regular workweek

Section 1 '1.02- An Employee, who is called out for work, after completing his day or shift, will

receive time and one half (1 Y,) for hours worked, but in no case shall they receive less than four (4)

hours pay at straight time If the employee works more then four (4) hours, they will receive pay, at

time and one half (1 Y,), for any part of this time worked, in excess of one quarter (Y.) hour An

employee, who is called in, before their scheduled day or shift, will receive call-in pay, at time and

one half ( 1 Y,) for all time worked, up to their scheduled start time

ARTICLE 12 ·MEAL ALLOWANCE

Section 12 01 -If an employee is required to work more than ten (10) hours on an eight ( 8) hour

shift or more than twelve ( 12 ) hours on a ten ( 10 ) hours shift on any day he shall receive a meal

allowance of fifteen dollars ($15 00) Meal allowance will be increased to twen_!Ldollars ($20)

effective October 1, 2010.

ARTICLE 13 ·PROBATIONARY AND TEMPORARY EMPLOYEES

Section 13 01 .. All employees hired shall be considered probationary employees for the following

periods

(A) Temporary Employees-- For the duration of their employment

(B) Students -- For the duration of their employment

(C) Regular Full Time Employees -- For the first sixty (60) days they perform work for the

Company.

Section 13 02 - Employees shall have no seniority or other rights or benefits under this agreement

during their probationary period, and they can be disciplined or discharged without recourse to the

grievance procedure

Section 13 03. If the employee successfully completes the probationary period, his seniority shall

be computed as specified in the Seniority Article, herein

Section 13 04 -· It is not the intent of this agreement as relates to temporary students and others

who are not regular full time employees to permanently replace regular full time employees who are

members of the bargaining unit on the effective date of this agreement

Section 13 05 - It is understood that the company and CEP local 324-6 have mutually agreed to

recognize the need for temporary employees at the Fort-Frances Plant to address short term needs

to increase weekly manufacturing hours

Fort F1ances, Ontario 09/12/08 9

Definition: Temporary Employees

(a) A person hired for:

1 Temporary increases in production expected to last not more than ninety (90)

days

2 Temporary absences due to illness or injury

3 Vacation Relief is considered to be a temporary employee Temporary

employees will not acquire seniority standing unless and until they are permanently

employed This 90 days worked may be extended by mutual agreement of the

parties and such agreement shall not be unreasonably withheld Temporary

employees shall be paid at $1.00 per hour less than the rate of pay for the

classification they are performing If they become permanent employees, seniority

shall be retroactive to date of hire. Employees so hired shall be notified of their

status at the time of hiring, as will the Union, and when they become permanent, if

such event occurs

(b) Temporary employees will pay union dues

(c) It is not the company's intention to replace bargaining unit positions with temporary

employees Temporary employees shall be laid off prior to any layoff of seniority

employees

(d) The time limits indicated above pertain to the position, not the person

(e) Temporary employees will be considered fora permanent vacancy if the posting

remains vacant once the procedures in Article 15 of the current Abzac Fort

Frances- CEP 324-6 collective agreement has been exhausted Temporary

employees will be given consideration for any vacancy in advance of outside

applicants

(f) Extra staffing required for incidental vacancies will be filled through the overtime

procedure

Any unionized employees currently laid off will be temporarily recalled while temporary employees

are needed The Company's (ABZAC) intention is to staff full-time employees in all union positions

that require 40 hours per week barring conditions in definitions paragraph (a)

ARTICLE 14- SENIORITY

Section 14 01 -The Company agrees to recognize the principal of seniority in decisions relating to

layoff, recall, and job advancement within the bargaining unit Seniority is each employee's length

of service since date of last hire, as a regular full time employee

Section 14.02 - In the event of a lay off, employees will be laid off in order of seniority, i.e last

hired, and first laid off However, remaining employees must be then able to immediately perform

the required work, without training. If it is an extended lay off, it is understood that the Company

will train the employee

Fort Frances, Ontario 09/12/08 10

In the event a more senior employee is laid off and an employee with less Seniority is working, the

senior employee will immediately be given an opportunity to replace the junior employee subject to

the following provisions He will be given an orientation/training session of a full shift on the job

being performed by the said junior employee then working and at the end of such session if the

senior employee can perform the job, he will replace the junior employee The winder operator job

is exempt from this provision due to the extended training period required

Section 14 03 - Employees shall be recalled in reverse order of layoff provided they can

immediately perform the required work.

Section 14 04 - Loss of Seniority ·· Notwithstanding any of the foregoing provisions of this Article,

the employee shall be terminated and all seniority rights and all other rights under this

agreement shall be lost and forfeited if any of the following occurs:

{A) An employee quits, or

(B) An employee does not return to work upon recall from layoff except for compelling,

unavoidable reason acceptable to the Company

{C) An employee is terminated

{D) An employee fails to report for work upon expiration of an authorized leave of

absence, or,

(E) An employee is absent without notifying the Company for three (3) consecutive

working days without compelling, unavoidable reason acceptable to the Company, or,

(F) An employee with less than one (1) year senvice does not perform any work for the

Company regardless of reason continuously for a period of time equal to his length of

service, or,

(G) An employee with more than twelve ( 12) months senvice does not perform any work

for the Company regardless of reason continuously for twelve (12) months

Section 14 05 -·Employees are responsible for notifying the Company, in writing, of any change of

address and telephone number, and the Company shall have discharged its responsibility to notify

employees if it shall give notice to the last address or telephone of which it has been notified in

writing by the employee

Fort Frances, Ontario 09/12/08 11

ARTICLE 15 ·JOB ADVANCEMENT

Section 15 01 - Senior employees immediately able to perform the work will have the opportunity

to fill temporary vacancies expected to last under thirty (30) days in duration, If a vacancy,

anticipated to be longer than thirty (30) working days, occurs in a regular full time job, the

Company will, within 72 hours, post the job opening on the bulletin board for a period of five (5)

working days Employees interested in filling the job shall sign their name on the posting The

successful applicant will be notified within twenty-four (24) hours of the posting coming down

Section 15 02 - The Company recognizes that seniority and efficiency will determine the suitability of

the applicant Areas of evaluation must include the reasonable skill & ability of the applicant in the

posting If all areas of qualification are considered equal, the applicant with the greatest seniority will

receive the trial period

Section 15,03- Employees accepting a posted position shall be allowed fifteen (15) work days in

which to qualify, (or a further time as may be mutually agreed, if further training time is

required) Failure of an employee to qualify or if an employee is unsatisfied in the position shall

entitle him to return to his former job without loss of seniority

Section 15 04 - That when an opening occurs the employer will post for the opening Once a

successful candidate has been chosen the employer may fill their original position temporarily until

the employee is permanently in the posted position The employee who temporarily fills this position

will not gain any advantage for that position once it is posted This process would keep repeating it

self for any openings

ARTICLE 16,. HOLIDAYS

Section 16 01 - Employees who have completed their probationary period shall receive holiday pay

of eight (8), ten (10) or twelve (12) hours of regular straight time hourly pay for each of the following

holidays not worked, provided they qualify by working the scheduled workday before and after the

day in which the holiday is observed It is also agreed that if there is a reasonable cause for not

completing their entire scheduled workday before and after the holiday, the employee will be paid

for the said holiday

The following shall be paid h®lidays:

Labor Day Day Before or After Christmas New Year's Day

Christmas lfl)ay One Day Before or After New Year's Day

The following shall be paid individual floating holidays regulated as per language in the

Floating Holidays Section:

Good Friday Victoria Day Civic Holiday Thanksgiving Day

Fort Frances Ontm io 09/12/08 12

Boxing Day Easter Monday Dominion Day

Section 16 02 - For purposes of this Article the holiday starts at the beginning of the first shift, which

is regularly scheduled to end work on the calendar day the holiday is observed

Section 16 03- In the case of layoff, the provisions for working the day following the holiday shall be

waived

Section 16.04- In the event that work is performed on any of said holidays, one and one-half pay in

compensation thereof shall be paid in addition to the holiday pay herein above provided However,

if an employee agrees to work on the holiday and fails to report, he shall not be paid the holiday

pay

Section 16.05 - Any holiday which falls on a Sunday shall be observed and paid for as such on the

following Monday

Section 16 06 - Floating Holidays - Any regular full time employee (excluding temporary and

probationary employees; other provisions of this Agreement not withstanding), who has

accumulated at least six (6) months of seniority, may take the floating holiday at any time during the

contract year Further any regular employee shall be entitled to three (3) additional floating holidays

to be taken on dates that are mutually agreeable between the Company and the employee Subject

to the following conditions and stipulations;

(A) Not more than three (3) day shift and two (2) night shift employees may be off during

any given week

(B) Only five (5) employees may be off on any given day

(C) Employees must give the Company at least seven (7) days notice, in writing, of their

desire to take such holidays, the Company will attempt to grant all such requests

subject to the above limits

(D) Seniority shall determine which employees, of those notifying the Company as in (C),

above, are allowed off

(E) Any employee not notifying the Company as in (C), above, shall have no right to

exercise his seniority for a day off, but he may request this holiday with less than

seven (7) days advance notice and the Company may grant such request at its

discretion

(F) The above conditions may be relaxed at the sole discretion of the Company in

the event it determines there are extenuating circumstances In the event that an

emergency or extenuating circumstance requires an employee to be absent, he may

request that such absence be considered his floating holiday The Company may

grant such request at its discretion

(G) In any week that an Employee takes a Stat or Floater, it will be recognized as

a day worked in that week Should an employee agree to work beyond the normal

workweek they will receive premium pay for all hours worked Hours of this holiday

not taken are not to be considered when computing overtime

Fort Frances, Ontario 09/12/08 13

ARTICLE 17- VACATIONS

Accumulated vacation pay will be paid at the time vacation is taken The amount of vacation pay

paid will be deducted from the employee's accumulated vacation earnings at the rate equal to the

employee's earnings for the vacation week(s) taken, i.e one (1) week's pay for each week of

vacation taken

(

Any remaining vacation pay at the end of each ye<H wii)Jlormally bepaid outto the employee unless

an employee requests otherwise by April 1 of each year Each employee with more then one year

seniority must take a minimum of two weeks vacation annually Banked vacation will not accrue for

more than two (2) years

Section 17 01 -Employees shall receive pay in accordance with the following:

(A) The Vacation Qualifying Year shall be May 1 through April 30 Vacation time off and

pay shall be based upon that period and shall be collected during the twelve (12)

months following the Vacation Qualifying Year

(B) Vacations shall be scheduled on the basis of seniority; i e., employees with the

greatest seniority shall have first choice of vacation period, Vacation selection shall

occur by written request from the employee Choice of vacation time off dates shall

be by mutual agreement of the Company and the Employee

(C) Employees who take their vacations during a period in which there is a paid holiday

shall be granted an additional eight (8) hours pay or an additional day's vacation

(D) The Company reserves the right to shut down any department or the plant in its

entirety for the purpose of vacation

Section 17 02 -An employee on the active payroll of the Company as of April 30"' with less than one

(1) year shall qualify for one (1) week of vacation with pay, based on four percent (4%) of the

employee's previous year's gross earnings,

(A) An employee who has completed one (1) years of service as of April 30 of any year shall

qualify for two weeks vacation with pay based on 4 % of the employee's previous year's

gross earnings

(B) An employee who has completed six (6) years of service as of April 30 of any year shall

qualify for three weeks vacation with pay based on 6 % of the employee's previous year's

gross earnings (.., 0uvr2." = ~ ~ttkr.t r-t rc!>Jo

(C) An employee who has completed nine (9) years of service as of April 30 of any year shall

qualify for four weeks vacation wit,h pay based on 8 % of the employee's previous year's

gross earnings q ~)'w'"'J z tfiJJ<t,)(r.J ,.± ~'7.

(D) An employee who has completed twelve (12) years of service as of April 30 of any year

shall qualify for four weeks vacation with pay based on 9 112 % of the employee's previous

year's gross eammgs 1 :l. tJ'·~"J ~ 4 ,,;n,jz,J ~· 9 S 7.

Fort Frances Ontario 09;12/08 14

(E) An employee who has completed seventeen ( 17) years of service as of April 30 of any year

shall qualify for five weeks vacation with pay based on 10 112 % of the employee's

previous year's gross earnings !?\)'"''',_~ ~ 5w.ejGJ rt ID 5'{•

(F) An employee who has completed twenty (20) years of service as of April 30 of any

year, shall qualify for five weeks vacation pay baseq on 12% of the employee's previous

year's gross earnings d.o.u•<VW 0 .5 w~d,J r· /;;1.7,

(G) Anemployee who has completed twenty-five {25)yearsof serviceas of April 30

of any year; shall qualify for six weeks vacation pay based on 12 172% of the

employee's previousyear's gross earnings J.5-:j-"-"·" = (, w•,fl& ,c.t 1~ s(,

Section 17 03 - New Hires:

After twelve months of employment, team members are eligible for additional shifts of vacation

determined by their month of hire This is prorated to bring all team members to a May 1" vacation

entitlement date in their second year of employment The prorated schedule is listed below:

Month of hire Additional vacation shifts Month of Hire -- Additional vacation shifts earned

-- earned on_Anniversary date on Anniversary date

May 5 November 2 '- ---

~June ___ 5 December 2 "

January _ July 4 1 ------

August 4 February 1 -- --

September 3 March 0 -------October 3 A_pril 0

---- -·----

Current Employees: The pror§_~Q chaf1_\IY_ill_be utilized for current emplqyees to bring them~ the May 1'1• date._ 1Jii

will be a one time adjustr11ent effective on their next vacation increment (on their anniversary year)

17 04 -- Employees will be able to submit more than one (1) prime time request in priority order,

however; only one (1) request per employee will be scheduled first between March 1st and March

31" each year When employees have submitted a request and one (1) request has been

accommodated, the second and third requests for those employees will be considered only after

May 1st Prime time vacations submitted during this March sign up period will be allotted by

seniority as available

17 05 - All vacation requests submitted seven (7) workdays in advance minimum time

required) and to be taken after May 1st will be awarded on a first come, first serve basis, and shall

be processed within two (2) weeks of submission

17 06 -· All vacations requested for the prime vacation period will be limited to a two (2) week

period The prime vacation period is identified as Victoria Day to Labour Day inclusive

ARTICLE 18 -MEMORIAL LEAVE

Section 18 01 - In the event of the death of a member of an employee's immediate family (spouse,

children brother, sister, mother-in-law, father-in--law, parent(s) the employee shall, if necessary, be

permitted up to a maximum of five ( 5) days leave of absence ending with the date of the memorial

Fort Frances, Ontario 09/12/08 15

(includes step & foster relative)

In the event of the death of a grandparent of the employee or spouse, the employee shall receive

two (2) days leave of absence (includes step & foster relative)

Section 18.02 - Any member required to be off for Memorial Leave shall receive his regular hourly

rate for eight, ten or twelve hours per day up to a maximum of five days, whether those days fall on

scheduled working days, weekends, vacation, sick days, leave of absence and paid holiday. If the

memorial days fall on a paid holiday the member shall still receive the paid holiday and is entitled to

another day off with pay in lieu of the paid holiday

Section 18 03 - If, during the period of such leave, the employee is recervmg holiday, vacation

compensation, or other payment, he shall be entitled to memorial pay under this Article at the end of

said holiday, vacation or other

Section 18.04 - In order to qualify for benefits under this Article, the Company may at its option

request and verify with the employee proof of death, relationship of deceased, date of funeral, and

residence of the deceased

Section 18 05 - If travel is required by virtue of the aforesaid loss, up to one ( 1) day additional leave

will be granted to the employee with pay, with proof of distance & travel

Jill- Section 18.06 - Full-time employees will be allowed one (1) day off with pay to accompany children

'I( under the age of eighteen (18) to attend the funeral of a biological parent, if parents are separated

or divorced

( Section 18 07- Subject to approval of management, full--time employees may be allowed a

"(· maximum of eight (8) hours leave without pay to attend a funeral as an active pallbearer

ARTICLE 19- LEAVE OF ABSENCE

Section 19 01 -The Company may grant a leave of absence without pay or benefits but request for

such leave must be given in writing and the reason for the leave must be fully stated

Section 19 02 - Leave of absence is not available for purposes of accepting employment with

another employer

Section 19 03 - Failure to return to work upon expiration of a leave shall result in termination of

employment except if for unavoidable documented reason acceptable to the Company

ARTICLE 20 ···SAFETY AND HEALTH

The Company and Union agree that the provisions of the 1998 Occupational Health and Safety

Act of Ontario presently in force will be the recognized minimum standard for Health and Safety in

its health care operation The Company and Union are "committed to excellence" with regards to the

Health, Safety and Wellness of all company employees

Section 20 01 - The Company's right to make and enforce reasonable safety rules, regulations,

and/or procedures, and to otherwise provide for employee safety is not and shall not be impaired or

limited by this Agreement

Fort Frances Ontario 09112108 16

Section 20.02 ·- The company agrees to reimburse the purchase of safety shoes up to one hundred

and fifty ($150.00) dollars annually upon presentation of sale receipt, after the employee completes

their probationary period Vouchers to selected retailers are also available for this purpose

Section 20.03 - Failure by an employee to comply with safe practices and rules shall be subject to a

verbal or written reprimand or to any disciplinary action deemed necessary under the

circumstances

ARTICLE 21 - TEMPORARY TRANSFER

Section 21 01 -Any employee, who has completed his probationary period and is transferred from

his regular job to fill a temporary vacancy, shall be paid as follow

(A) It is agreed that when an employee is moved to a higher position, classification or rate of pay

plus premiums, they will receive the higher rate of pay Minimum increment that the employee must

do the job is one quarter (1/4) of an hour

(B) If the employee is moved to a lesser position, classification or rate of pay, they will receive

their regular rate of pay plus premiums If either of these transfer conditions lasts longer than six (6) months, both parties agree to

meet and discuss the issue and mutually agree on the employee's rate of pay.

Section 2102 - An employee temporarily transferred for his own convenience, or for other reason

requested by the employee and approved by the Company, shall be paid without delay, the rate of

the job to which he is transferred if that job is rated lower than his regular job

In such types of transfer, if the employee is transferred to a job with a higher rate than his regular

job, he shall continue to receive the rate of pay of his regular job

ARTICLE 22- ATTENDANCE

Section 22 01 -The parties recognize the need for all employees to report for work as scheduled

Section 22 02 - Unacceptable tardiness and/or absenteeism will not be tolerated and disciplinary

action including suspension and discharge can result in such cases

ARTICLE 23 ··WORKING FOREMAN

Section 23 01 - An employee serving as a working foreman will be responsible for carrying out the

Company's direction, responsibilities and supervising the employees The working foreman will have

the responsibility to ensure production schedules are respected and organize routine operations to

be effectively carried out in a timely manner He/she will not discipline any employee, at any time

It is understood that the working foreman's position will be posted and all bargaining unit members

can apply for this position. The working foreman will be selected in accordance with Section 15 The

rate of pay will be one dollar and seventy-five cents ($1 75) over the top negotiated rate in the

collective agreement, and two dollars ($2.00) is to be the unsupervised rate

It is understood that a responsibility of this position is to assume the weekend on call, on a

scheduled basis The compensation for this function is set at $100 00 per weekend If required to

work on the weekend, this position will be paid as per the collective agreement The working

Fort Frances Ontario 09!12/08 17

foreman will also assist the Plant Supervisor to take monthly and yearly inventory counts as

required

ARTICLE 24 ··HEALTH AND WELFARE BENEFITS

Section 24 01 ·· Attached and made a part hereof is Schedule B indicating the insurance plan

available through the Company

ARTICLE 25 - NEW OR CHANGED JOBS

Section 25 01 - In the event a new or substantially changed job goes into effect and new straight

time hourly rate is needed in any department, the Company shall establish rate of hourly pay and

said pay shall remain in effect for 120 calendar days If at the end of that period the Union

disagrees with such rate it shall file a grievance and it shall be processed according to the grievance

and arbitration procedure set forth herein

ARTICLE 26 · NO STRIKES·· NO l.OCKOUlS

Section 26.01 - During the term of this Agreement the Union shall not call or sanction any strike,

slowdown, concerted or individual work stoppage or other interference with Company business; and

any employee calling, taking part in, or sanctioning such is subject to disciplinary action which can

include discharge.. Participation in any such group conduct which warrants disciplinary action may

result in discipline to one, any, or all participants, but not necessarily any, nor necessarily to any

alike, but sl1all be based on action the Company considers appropriate for each participant

Section 26 02- The Company shall not "lockout" employees during the term of this Agreement

Section 26 03 ··The closing down of the plant or any part thereof, or curtailment of any operations,

shall not be construed as a lockout if for business reasons

ARTICLE 27 - PAST PRACTICES

Section 27 01 - This Agreement represents the parties' full complete and only agreement on all

issues Any issue, practice, benefit, condition not specifically and clearly set forth herein is excluded

from this Agreement and may be changed or eliminated by the Company at any time it determines

appropriate

This Agreement may not be amended, changed, altered or qualified except in writing by the parties

This Agreement cancels and supercedes any and all previous Agreements and/or claims arising

there under

Fort Fiances, Ontario 09/12/08 18

Ub'0-H:!-;:WU8 11: bij

12/18/2008 10:44 8072745729

DEC·JB-Z008 THUll: 15 AM CfP LOCAL 324

~Ul912eae 1e: 22 9872746729

A~LA<.; f t

FAX:8072235591 <\llZAC FF

ARTICLE 211 - SE!PARAlllll..l'rY

Seclion 211.01 • Should any provision ofthls Agreement be, or become, illegal under

any law, amended law, or regulation of CaMda or ofthe Prolllnce in which tills plant

is loeate.:l, or by decree o1 a court of competent junadiotion. S!)ch provision snail be

null and voiil, 15\.lt ~ne remaining provllllon<~ of this Agreement shall continue in full

force and ~lleet

Section 29.01 ·· In consideration of the promises contained Morain, the Union shall not

bring or e:ltJ!I<ll to P<'! brought agaln~t the Company, :my court or other legal or

administrative actions until the Unio11 shall completely exhaoot aMh and every

eontrac'lual remedy aveifallle to it under thl!l Agre11ment to set'Je any dispute, claim.

gtievance, or complaint and not lllereafter 1~ntil it shall notify !he Company In writing

of the speclfic nature of the dlepute, claim, grievance. or complaint ~!1<:1 of its

intention to Initiate legal or llldministnotiva action r. ,

ARncu: an·- TF.RM OF c:oNTAACf

Section 3(101 - fhiS Agreement shall becO!l\$ effective as of lhe 1" day of Od:ober

2006 until midnight lh,. SO"' day of September 2012, and from year to year lhere;of!er

unless eith2r party shall give writ\<!11'1 notice to !he otner of ~1a lirs1 pattlea • desire to

amend O( terminate tlw Agte<!>ment. Such Nollce to be delivered to !he second party

within a period of not more than ninety (90) calendar daYllllnd not less t11an thirty

(30) oalnder i;la)lll prior to the expiration date of this Agreement.

IN WITNES$ hereto, repre~nltrtlves of tha pati:iM affix their slgnat\Jres this _1Sth_

day of ~December._, 2008 ..

~~~~A~~~~~~:~---­

Ope ns Maoagl!f Csnada

Fo<t F""'ee., OntOtiO 09112108

t-' UUl/UUb t-'AQt:, 'O.f.t tJb

p 00! PAGE: &1/es

ARTICLE 28 · SEPARABILITY

Section 28 01 - Should any provision of this Agreement be, or become, illegal under

any law, amended law, or regulation of Canada or of the Province in which this plant

is located, or by decree of a court of competent jurisdiction, such provision shall be

null and void, but the remaining provisions of this Agreement shall continue in full

force and effect

ARTICLE 29 · MUTUAL PROMISES

Section 29.01 - In consideration of the promises contained herein, the Union shall not

bring or cause to be brought against the Company, any court or other legal or

administrative actions until the Union shall completely exhaust each and every

contractual remedy available to it under this Agreement to settle any dispute, claim,

grievance, or complaint and not thereafter until it shall notify the Company in writing

of the specific nature of the dispute, claim, grievance, or complaint, and of its

intention to initiate legal or administrative action

ARTICLE 30- TERM OF CONTRACT

Section 30.01- This Agreement shall become effective as of the 1'1 day of October

2008 until midnight the 30'" day of September 2012, and from year to year thereafter

unless either party shall give written notice to the other of the first parties' desire to

amend or terminate the Agreement Such Notice to be delivered to the second party

within a period of not more than ninety (90) calendar days and not less than thirty

(30) calnder days prior to the expiration date of this Agreement

IN WITNESS hereto, representatives of the parties affix their signatures this __

day of , 2008

Abzac Canada Fort Frances Division

Cedric Ardin Operations Manager Canada

·-,----------····--Peter Engberg Plant Manager Fort Frances Division

Fort f ranees Ontario 09112/08

Communications Energy and Paperworkers Union and Its local 324-6

19

DEPARTMENT

CORE MANUFACTURING

Winder Operator Shipper/Receiver Roll Tender CTL Operator

CORE FINISHING

SCHEDULE "A".

WAGES

STRAIGHT TIME HOURLY RATES EFFECTIVE

10/01/08 10/1/09 10/1/10

$2112 2000 19 57 19.57

$21 .. 65 20 50 20.06 20.06

$22 25 21.06 20 .. 61 20.61

10/1/11

$22 .. 86 21.64 21 .. 18 21.18

Finishers $18 .. 29 $18.75 $19 .. 27 $19.80

~dO q.3

Employees will be paid at the position worked

(*)All employees newly hired or posted to a different position will be paid $1.00 per hour less

than the rates listed above for the duration of their probation period in each position

********

The Company has an incentive plan(s) for work performance, see Schedule "E"

CTl. operator responsible for setting up and running the CTL will receive a rate of

sixty cents (60) higher per hour then the current posted CTL rate

A daily labor rate to encompass students and spares@$ 13 38/ hour, effective 10/01/08

fort hances, Ontario 09/12/08 20

SCHEDULE "B':

GROUP INSURANCE

B 01 - The Group Insurance indicated below is available to each employee on the active payroll

subject to the following conditions and to the terms and conditions of the insurance policy or policies,

by which the benefits are underwritten

Bil2.,;; Enrollment - No employee shall be enrolled or eligible for bt;>nefits until the_ {irs.t_day_Q.f the

month occurring coincident with or next following the day such t;>mployee completes six (6) full

calendar months of employment with the Company ·

B 03 -Part time and temporary and student employees are not eligible for group insurance coverage

B 04 - Employees must fill out the required insurance application forms as a condition of eligibility

B 05 - The Company assumes no greater liability than to make such insurance available to eligible

employees in accordance with the terms and conditions of the insurance policy(ies) or plan(s) which

benefits are underwritten or provided and as such terms and conditions are amended from time to

time The Company shall determine the insurance carrier

B 06 - The significant benefits available under the group insurance plan are characterized but not

specified as follows:

(A) Life Insurance with Accidental Death and Dismemberment Benefit:

Effective 1011/08

Principal Amount $ 50,000

Employees will have the option to purchase additional coverage for self and family

(At the employee's expense)

(B) Disability Sub Plan

The Company agrees to establish a Supplemental Unemployment Benefit Plan ("SUB Plan") solely to

provide a top-up to Employment Insurance ("EI") sickness benefits in the event that an Employee

becomes eligible for such El benefits The SUB Plan will have the following features, subject to the

approval of Human Resources Development Canada

General Provisions

SUB Plan benefits shall be payable for a maximum of seventeen ( 17) weeks

SUB Plan benefits shall be financed by the Company's general revenues and the SUB Plan is not

required to be funded

Payments of guaranteed annual remuneration, deferred remuneration, or severance pay will not be

reduced or increased by payments received under the SUB Plan

The SUB Plan supplements El benefits received by Employees arising from an inability to work due to

a disability, as set out below:

fort hances, Ontario 09/12/08 21

First Two Weeks of Disability

The SUB Plan benefit shall be 70% of the Employee's weekly earnings from the first day of accident, first day of hospitalization and from the third day of sickness, for the first two (2) weeks of absence due to disability

Employees are required to prove to the satisfaction of the Company that they are medically unable to work through the presentation of verification of illness or hospitalization from a physician containing sufficient detail to aJiowJhe Company to make such determination

Disability in Excess of Two Weeks After the first two (2) weeks of absence due to disability, the SUB Plan benefit shall be calculated such that the Employee's El benefit rate (gross amount) and the SUB Plan benefit payment together equal 70% of the Employee's weekly earnings

Employees are required to prove to the satisfaction of the Company that they have applied for and are in receipt of El sickness benefits in order to receive payments under the SUB Plan SUB Plan benefits are payable for a maximum of fifteen (15) weeks

PAID SICKNESS AND ACCIDENT BENEFIT

Disability in Excess of Seventeen Weeks If an Employee remains disabled following the first seventeen (17) weeks, the Company will pay 70% of the Employee's weekly earnings for up to a maximum of thirty-four (34) weeks such that the total period of disability for which benefits are available under the Disability SUB Plan and the Paid Sickness and Accident Benefit combined is fifty-two (52) weeks

Employees are required to prove to the satisfaction of the Company that they are medically unable to work through the presentation of verification of illness or hospitalization from a physician containing sufficient detail to allow the Company to make such determination

B 07- EXTENDED HEALTH CARE

(A) Verification of Illness or Hospitalization (Doctors Note) The Employer will reimburse employees for the cost of obtaining medical forms requested by the Employer (B) Pay the entire cost of Ontario Health Insurance Plan.. , (C) Major Medical insurance plan as per insurance booklet, paid by the Company, ~· (D) Dental Plan to be provided as per plan booklet: 0~_..0° > • ·j.L

" Basic Dental: Pre.mium paid 80% by the company, 20% by the employee D<>'>'~ "

Reimbursement: 80% of eligible charges · { \<j:)O

Major Dental: Premium paid 80 % by the company, 20 % by the employee ~,.~o"- "· Reimbursement: 80% of eligible charges with a maximum cumulated

reimbursement of 1500 $ per calendar year per covered person

The ODA Schedule of Benefits shall become effective as follows: ODA SCHEDULE

EFFECTIVE OF BENEFITS Ratification Current

(E) The Employer will provide a drug card to eligible employees

fort Frances. Ontario 09/12!08 22

B 08 - VISION CARE

(A)The Company will provide a family eye glass policy to provide for prescription eyeglasses of

one hundred and seventy-five dollars($ 175 00) every two (2) years This amount will be

increased to two hundred ($200 .00) effective January 1, 2009

(B).Eye examination coverage-· one exam every two (2) years, to a maximum of$ 75 00.

SCHEDULE"C"

PENSION

C 01 -The Company contribution to an employees pension shall be to a total of four and one half

( 4 5%) percent of the Employees Base Rate per hour worked by eligible employees. This

contribution will increase to five (5%) percent on Oct 1, 2010

Fort frances Ontario 09/12!08 2 '

Schedule " D "

Letters of Understanding

0.01 ··We are including the following Letters of understanding, signed December X, 2008, as an attachment to the Collective Agreement..

L E l T-E-R--Q-F-t.J-N-9-E-R-S-r-A-N-fH-N-G

BETWEEN ABZAC CANADA inc .. Fort-Frances division

AND : Communications,Energy and Paperworks Union of Canada and its Local 324-6

Subject : Wage protection for Employees with Winder Operator rate ..

The Company ( Abzac Canada Inc. Fort-Frances Division ) and CEP Local 324-6 have mutually agreed that in order to eliminate past practices of multiple Employees collecting the Winder Operator rate while not performing the work:

Jason Flinders will receive the Winder Operator rate as per Schedule A during the remainder of his employment with Abzac ,

Clay Flinders will receive the Winder Operator rate as per Schedule A during the remainder of his employment with Abzac,

Adam Heil will receive the Winder Operator rate as per Schedule A during the remainder of his employment with Abzac ,

Brian Whitefield will receive the Winder Operator rate as per Schedule A during the remainder of his employment with Abzac ,

Jamie Busch will receive the Winder Operator rate as per Schedule A during the remainder of his employment with Abzac ,

And the Company will select among those employees at its discretion the one to replace the Winder Operator when necessary ..

All other employees will be paid as per classification worked.

Signed this X th day of December 2008 in the City of Fort-Frances,

For the Company: For the Union:

}'art Frances, Ontario 09112/08 24

LETTER OF UNDERSTANDING

BETWEEN ABZAC CANADA Inc Fort-Frances division

AND : Communications,Energy and Paperworks Union of Canada and its Local 324-6

Subject: Cross Working in Winder and Finishing Departments.

-----··-·----

The Company ( Abzac Canada Inc .. Fort-Frances Division) and CEP Local 324-6 have mutually

agreed that the following protocol will be respected when an employees is working both in the

winding and finishing departments in the same pay week:

Examples

-·- -- ·-Monday Tuesday Wednesday Thursday Friday Total Overtime

1-- F 8 hr Worked Paid

W 10 hr W 10 hr F 8 hr F 8 hr 44 4

F 8 hr F 8 hr F 8 hr W 10 hr F 8 hr 42 2 -

W 10 hr W 10 hr W 10 hr _w 10hr 0 40 0 - --

W 10 hr W 10 hr W 10 hr F 8 hr F 8 hr 46 6 -

As any employees that move up to the winder positions are most senior of the finishing group they will

always be entitled to work the Friday finishing shift Therefore there would be no situations in normal

operations where these individuals would be short a 40 hour work week

It is our company's intention to post all weekly schedules in the previous week and pay these persons

overtime for any hours worked in excess of 40 hours per week, or any daily hours in excess of those

previously scheduled

If an individual chose to not work the Friday shift and let a more junior employee work, then the company

will not make up any missing hours to that individual.

Signed this X th day of December 2008 in the City of Fort-Frances,

For the Company : For the Union :

fort frances, Ontario 09/12/08 25

LETTER OF UNDERSTANDING

BETWEEN ABZAC CANADA Inc. Fort-Frances division

AND : Communica!ions,Energy and Paperworks Union of Canada and its Local 324·-6

Subject: Premium protection for Leadhand 1 and Leadhand2 positions.

_____________ .. ___________ _ ·---·------------------

The Company (Abzac Canada Inc. Fort-Frances Division) and CEP local 324-·6 have mutually

agreed that in order to eliminate past practices of lead hand 1 and Leadhand 2:

Andrew Shepanski will receive a premium of sixty ( $ 0,60) cents per hour on top ofthe rate of

the highest paid worker in the group during the remainder of his employment with Abzac ,

Terry Whitefield will receive a premium of one ( $ 1,00 ) dollar per hour on top of the rate of the

highest paid worker in the group during the remainder of his employment with Abzac ,

Article 23--02 will be removed from the collective agreement.

Signed this x th day of December 2008 in the City of Fort-Frances ..

For the Company: For the Union:

Fort Frances OntaricJ 09/12/08 26

lETTER OF UNDERSTANDING

BETWEEN ABZAC CANADA Inc. Fort-Frances division

AND : Communications, Energy and Paperworks Union of Canada and its Local 324-6

Subject: Shift Organization for 8 and 10 Hour Shifts Schedules ..

--·--·--------------

The Company (Abzac Canada Inc. Fort-Frances Division) and CEP Local 324-6 have mutually

agreed that Shift Organization of 8 or 10 hour shifts will be as follows:

[_ ____ _ Shift organization. --=-~=-===::-...:_ . ] --------------~---------- 8 HOURS SHIFT 10 HOURS SHIFTS

--- ·-- --------·-- --------Regular work~-----·· 8 hours ___ c-----o· 10 hours

Regular work week : 5 Days x 8 Hours 4 Days x 10 Hours

1 0 Days x 8 hours 8 Days x 10 hours

Floater days paid = 80 Hours paid = 80 Hours . -s tatutory Paid Holidays 8 Hours paid 10 Hours paid

Lunch Breaks -·--·-·· .....1.2!_30 minutes paid 1 x 45 _!llinutes paid .. '-------

The Company can choose a 8 or 10 hour shift for our winding department, as best fits our

current manufacturing needs and make the shift change with a prior two (2) week notification of

the change of hours to the Union.

Signed this X th day of December 2008 in the City of Fort-Frances ..

For the Company: For the Union:

fort Frances. Ontario 09/12/08 27

[ Schedule E Abzac Fort Frances- Performance Bonus

MONTH OF __ ]

Value

RETURNS RATE 2 %available -·---- I TOTAL··-

···--r---·-· -.

---Less then 0.4% 2%

-· 0.4%, less then 0.7% 1% [------ -·

- - ·--~--·- --

Greater then 0.7% 0%

·------·---------- ---·--- ·-

-- -····----·-- --SCRAP RATE 3% available

;-- -------Less then 6% 3%

- -6%, less then 7% 1.5%. .. ·-

7%, less then 8"/(J 1%

------- - --·· -, Greater then 8 % 0%

- -·

·.,--·--.,---------r-·-· PRODUCTIVITY 3% available

, ____

-Winding BOO to 900 meters/hour 0.50% -Winding 900 to 1000 meters/hour 1.00%

1.5% ·-r--

Winding> 1000 meters/hour ---- --1--------

Pre Cut 55 to 60 Cuts/M.H 0.50% -- ·---· --· -------t----·- --------

f----· Pre Cut 61 to 65 Cuts/M.H 1.00% -------- ------

Pre Cut Greater then 65 Cuts/M.H 1.5'% - r------·+------

-- - - ----·· -·---TOTAL

0 00%

-·--· ---- --------·----·-Effective October 1, 2008

Bonus Procedure

Returns Rate · is Calculated as tile value Sale Value of Customer Returns related to Quality divided by the total Sales for that Period

Scrap Rate - Is Calculated on the total average Scrap Rate

Productivity

Winding .. Is Calculated on the Monthly average efficiencies OR EGO (Meters/Hour)

Pre Cut·· is the total Cut cores divided by the total man··hours to cut for that department for that Period

Pay ... Out Bonus percentage is a calculation of the employees rate of pay multiplied

Bonus is paid monthly by the 2nd pay period of each month

Bonus is paid to each Bargaining unit employees including Indirect employees I E Shippers/Maintenance Etc

Bonus is paid to each Bargaining unit employees on Regular Earnings only Not Including Floaters and Stat Holldays

NOte: ~Onus paid on aH hours worked at base rates

Exclusions

Absenteeism· Bonus will not be paid to those employees that are absence and is limited to the period in which they are absent

Reporting

This Bonus sheet will be posted for the employees review upon completion on a monthly basis

Fort Frances, Ontario 09/12/08 28

Fmt Frances, Ontario 09112!08 28