COLLECTIVE AGREEMENT BETWEEN FRASER WHARVES LTD. AND TEAMSTERS LOCAL UNION No. 213 February 1st, 2006 - January 31st, 2009 DON McGILL

Secretary-Treasurer

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TABLE OF CONTENTS FRASER WHARVES LTD. ARTICLE PAGE 1. JURISDICTION AND RECOGNITION.....................................................................1 2. DURATION OF AGREEMENT ................................................................................1 3. UNION SECURITY..................................................................................................2 4. UNION ACTIVITIES OF EMPLOYEES ...................................................................2 5. LEAVE OF ABSENCE.............................................................................................3 6. SHOP STEWARDS .................................................................................................4 7. UNIFORMS .............................................................................................................4 8. PROTECTION OF RIGHTS.....................................................................................5 9. CONFLICTING AGREEMENTS ..............................................................................6 10. GRIEVANCE PROCEDURE....................................................................................6 11. PAY PERIOD...........................................................................................................8 12. ANNUAL VACATION...............................................................................................9 13. GENERAL HOLIDAYS ..........................................................................................11 14. SENIORITY ...........................................................................................................11 15. NEW EQUIPMENT OR CLASSIFICATION, TECHNOLOGICAL CHANGE ..........13 16. DAYS AND HOURS OF WORK AND OVERTIME ................................................14 17. COMPENSATION COVERAGE ............................................................................18 18. SAFETY AND HEALTH.........................................................................................18 19. KEEP PROPER RECORDS..................................................................................19 20. PERFORMANCE OF DUTY..................................................................................19 21. INSPECTION PRIVILEGES ..................................................................................20

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22. UNION LABEL AND VENDING MACHINES .........................................................20 23. SAVINGS CLAUSE ...............................................................................................20 24. HOURLY WAGE RATES AND CLASSIFICATIONS .............................................21 25. INSURANCE .........................................................................................................22 26. JURY DUTY, BEREAVEMENT, INJURY PAY ......................................................22 27. MEDICAL EXAMINATION.....................................................................................23 28. HEALTH AND WELFARE PLAN ...........................................................................24 29. HEADINGS............................................................................................................26 30. EMPLOYER'S RIGHTS.........................................................................................26 31. RETROACTIVE PAY.............................................................................................26 32. MISCELLANEOUS ................................................................................................26 33. BANKING OF OVERTIME ....................................................................................27 34. MINIMUM STANDARDS .......................................................................................27 35. PENSION PLAN....................................................................................................28 36. PROBATIONARY EMPLOYEES ...........................................................................29 37. SEVERANCE PAY ................................................................................................29 SIGNATORY PAGE ........................................................................................................30 LETTER OF UNDERSTANDING No. 1............................................................................31 LETTER OF UNDERSTANDING No. 2............................................................................32 LETTER OF UNDERSTANDING No. 3............................................................................33 LETTER OF UNDERSTANDING No. 4 ...........................................................................34 LETTER OF UNDERSTANDING No. 5 ...........................................................................35 LETTER OF UNDERSTANDING No. 6 ...........................................................................36 LETTER OF UNDERSTANDING No. 7 ...........................................................................38

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THIS AGREEMENT entered into this 1st day of February, 2006. BETWEEN: FRASER WHARVES LTD.,

13800 Steveston Highway, Richmond, British Columbia;

(hereinafter referred to as the "Employer")

PARTY OF THE FIRST PART

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters, of the City of Vancouver, Province of British Columbia;

(hereinafter referred to as the "Union")

PARTY OF THE SECOND PART

1. JURISDICTION AND RECOGNITION

(a) The Employer recognizes and agrees that the Union is the sole bargaining agent for all employees as set out in the Certification issued by the British Columbia Labour Relations Board and who are employed in the geographical area of the Lower Mainland which is bounded by Powell River on the North, the International Border on the South, the Township of Hope on the East, and Vancouver Island on the West. Excluded are managerial personnel and office employees.

(b) All members of the Union shall receive a copy of this Agreement which is

binding upon the bargaining authority and every employee in the unit for which the Union has been certified.

2. DURATION OF AGREEMENT

This Agreement shall be in full force and effect from and including February 1st, 2006 to and including January 31st, 2009 and shall continue in full force and effect from year to year thereafter, subject to the right of either party to this Agreement within four (4) months immediately preceding the expiration date, or immediately preceding the anniversary date in any year thereafter, by written notice to the other party, require the other party to commence collective bargaining with a view to the conclusion of a renewal or revision of the collective agreement or a new collective agreement.

Should either party give written notice to the other party pursuant hereto, this Agreement shall thereafter continue in full force and effect until the Union shall give notice of strike and such strike has been implemented, or the Employer shall give notice of lockout and such lockout has been implemented, or the parties shall conclude a renewal or revision of the Agreement or a new collective agreement.

The operation of Section 50 (2) of the British Columbia Labour Relations Code is

hereby excluded.

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3. UNION SECURITY

Section 1

(a) The Union recognizes the right of the Employer to hire whoever they choose. Subject to the seniority provisions contained herein, the Employer agrees that when new employees are required, the Union shall be given the first opportunity to dispatch said employees, with as much lead time notice as possible. When suitable Union members are not available, the Employer may hire from elsewhere.

(b) The Employer agrees that all employees shall be members of the Union as a

condition of employment. In the event that no suitable applicant is available from the Union and a non-Union person is taken into employment by the Employer, such person shall make application to join the Union within three (3) days of his hiring, and shall be added to the check-off list forthwith.

(c) “Work will not be performed by Manufacturers’ Representatives unless first

agreed to by the Union. If work is required to be performed by anyone outside the bargaining unit, including Manufacturers’ Representatives, they must be assisted by bargaining unit members at a ratio to be determined at the time the work is to be performed.”

Section 2

(a) The Union shall submit a checkoff in duplicate at the start of each month.

The Employer shall deduct the amounts shown thereon, as well as the deductions dealt with in Section (b) herein, and shall remit along with one (1) copy of the checkoff, to the Secretary-Treasurer of the Union, not later than the tenth (10th) day of the following month.

(b) The Employer shall also on each monthly checkoff list show the names of all

employees who commenced and discontinued employment in each month, and the Employer shall deduct and remit to the Union an amount equal to the monthly dues of said Union for each new employee hired by the Employer each month. If the Union checkoff has been remitted for that month, the specified amount shall be added to the next month's checkoff and shown as the previous month's dues deducted from such new employees.

(c) All employees referred to above will be required to sign an authorization for

checkoff of Union dues, initiation fees, fines, and assessments, which may be levied by the Union in accordance with the Constitution and By-Laws.

(d) In the case of a Union member being off through vacation, sickness or

compensation on the dues deduction pay date, his dues shall be taken off his first full pay following his return to work.

4. UNION ACTIVITIES OF EMPLOYEES (a) No employee shall be discharged or discriminated against for upholding the

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terms of this Agreement; no employee who serves on a committee shall lose his position, nor be discriminated against for that reason.

(b) The Employer shall allow time off work, without pay, to any employee who is

serving on a Union committee or as a delegate. It is agreed that no more than one (1) employee at any given time shall be absent on Union business.

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(c) It is also agreed that employees shall not take part in Union activities during working hours, excepting Shop Stewards who shall have the right to discuss grievances with the Personnel Manager or the appropriate Supervisor.

5. LEAVE OF ABSENCE

(a) When an employee suffers an injury, whether on the job or not, or suffers any illness preventing him from reporting to work, he will automatically be granted leave of absence without loss of seniority until such time as his doctor states he can return to work, except as provided in Article 27 herein.

If the Employer requires written notification from the employee's doctor, the Employer may request such notification when the employee notifies the Employer of his intended absence or at any time during his absence. The Employer shall pay for such written notification, if there is a charge by the Doctor and such charge is not covered by the existing Health and Welfare Plan.

In the case of a pregnancy, the employee shall be granted a leave of absence for a period consistent with the Unemployment Insurance Act on maternity and parental leave.

(b) Any other type of approved leave of absence shall be confirmed in writing by

the Employer. Copies of leaves of absence given by the Employer to any employee will be both sent to the Union and posted in the appropriate employee areas.

Employees who are not entitled to vacations but have been employed for seven (7) months or more, but less than twelve (12) months, shall be entitled to a leave of absence without pay for one (1) unbroken period of up to two (2) weeks, upon thirty (30) days written notice to the Employer. Subject to the Employer's right to regulate the total number of employees to be absent at any one time, no more than two (2) employees shall be granted such a leave of absence at any one time and, where necessary, such leaves shall be granted on the basis of seniority.

The Employer may grant a leave of absence without pay for legitimate purposes, other than those specified in this Agreement, to an employee who makes such a request in writing to the Employer. Approval shall not be unreasonably withheld. If a request is denied, the Employer shall give its reasons in writing.

(c) In any instance where any employee accepts other employment, when off

either through illness or accident or written leave of absence, his employment may be terminated. This will not apply to employees where such other employment is approved by the Employer.

(d) Any employee suffering injury or illness shall report the injury or illness to the

Employer as soon as possible, even if it does not require him to be absent from work.

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(e) Employees shall be granted a leave of absence for the purpose of going to

school. Such leave will be restricted to two (2) employees at any time with no more than one from any classification. Leave under this clause will not exceed twelve (12) months and no employee may take "School Leave" more often than once every three (3) years. Employees requesting "School Leave" should apply at least two (2) months prior to the commencement of such leave.

(f) Employees may be granted a leave of absence at the same time as their vacation. All employees must take their full vacation entitlement first.

6. SHOP STEWARDS

(a) The Union may elect or appoint Shop Stewards from among its members in the bargaining unit and shall notify the Employer in writing forthwith of such appointments and deletions. The Employer will recognize Shop Stewards and not discriminate against them for lawful Union activity.

(b) Shop Stewards shall not suffer a loss in regular pay as a result of their

participation in the Grievance Procedure; such participation will take place during the regular working shift without loss of regular pay. This provision shall apply to grievance meetings held under Steps 1 and 2 and shall not apply to arbitration hearings or procedures related to an arbitration hearing.

(c) The Union may have Shop Stewards in attendance at negotiations and their

wages will be shared equally by the Union and the Employer to a maximum of eight (8) hours straight time pay per day. Time spent in attendance at negotiations shall be considered as time worked for the purposes of accumulating the required 1300 hours service pursuant to article 12(e) of the collective agreement.

(d) The Employer will provide a bulletin board for the posting of this Agreement

and for such notices as the Union may from time to time wish to post. The said notices shall be posted and signed by an elected or appointed Shop Steward or other authorized representative of the Union.

(e) Shop Stewards will be allowed to leave their duties for a reasonable length

of time to investigate and settle grievances or to meet with management provided that they obtain prior authorization from their Supervisor. It is understood that such authorization shall not be unreasonably withheld.

7. UNIFORMS

(a) All employees shall, upon request to their Supervisor be provided with two (2) pair of coveralls, gloves and earplugs or protectors to ensure a reasonable degree of cleanliness and safety. Said coveralls shall be of an acid-resisting type. Each employee shall be responsible for the safekeeping of the coveralls provided to him.

Prior to the commencement of his shift on Wednesday, any employee who

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wishes to receive a replacement coverall(s) from the Employer must return a previously supplied coverall(s) to the Employer. The Employer shall also provide a clothes dryer to enable employees to dry their coveralls and other clothing.

(b) The Employer shall provide for a payment of $300.00 per year to each

employee who has completed thirteen (13) months' service with the Employer, for the reimbursement of employee's spending on approved protective clothing, to include such things as gloves, work boots, raingear, etc, that is not otherwise provided by the Employer. Such payment shall be made on the first pay period in February in each year.

It will be a requirement that all employees wear safety footwear at the work place as required by the Workers' Compensation Board and Employer policy.

(c) Rail Car Loaders shall be provided gloves on an “as needed basis”. (d) The Employer shall provide all regular employees with a safety vest, which

shall be worn by any employee who is required to work after dusk. Each employee shall be responsible for the safekeeping of the safety vest provided to him. An employee who wishes to receive a replacement safety vest from the Employer must return the worn out safety vest to the Employer.

(e) A tool allowance of $300.00 per year shall be paid to General Mechanics,

Journeymen, (Painters to be excluded), provided that the employees posted to the said positions use their own tools in the performance of their duties.

8. PROTECTION OF RIGHTS

(a) The Employer shall not require any Union member covered by this Agreement to cross a legal picket line recognized by the Union or to deliver to or accept any products from any employer, or the employees of any employer, against whom the Union has a legal picket line and which is recognized by the Union.

(b) All Union dues and Health and Welfare Plan contributions are to be paid to

the party entitled thereto not later than fifteen (15) days after such deductions are made, and upon default of compliance with this Section, the Union may require the Employer to post with the Union, a performance bond, in any amount, not exceeding five thousand dollars ($5,000.00). Such bond to be obtained through an established bonding Company.

Controversy with other Unions

(c) The Union agrees that, in the event the Employer becomes involved in a

controversy with any other Union, the Union will do all in its power to help effect a fair settlement.

(d) It is agreed in the event of a strike among the employees of any other firm

with which the Employer does business, the Employer will not ask its employees to perform any labour they do not ordinarily perform.

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No Strike or Lockout

(e) It is mutually agreed that there shall be no strike or lockout or slowdown

whether sympathetic or otherwise during the term that this Agreement shall be in force.

Reprimands

(f) An employee shall be entitled to receive a copy of any written reprimands or

disciplinary action placed on the employee's file, with a copy to the Union and the Shop Steward. Any derogatory statement in an employee's personnel file shall be deleted and removed from the active file after eighteen (18) months from the date of occurrence and may not be used against the employee after that time.

Non-Union Workers

(g) The Union members reserve the right to refuse to work with non-Union

persons. This does not apply to persons on the payroll of Fraser Wharves.

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9. CONFLICTING AGREEMENTS

(a) The Employer agrees not to enter into any agreement or contract with employees of the Employer, members of the Union, individually or collectively, which in any way conflicts with the terms and provisions of this Agreement. Any such agreement will be null and void.

Transfer of Company

(b) This Agreement shall be binding upon the parties hereto, their successors,

administrators, executors, and assigns. In the event an entire operation or any part thereof is sold, leased, transferred, or taken over by sale, transfer, lease, assignment, receivership, or bankruptcy proceeding, such operation or any part thereof shall continue to be subject to the terms and conditions of this Agreement for the life thereof.

The Employer shall notify the Union in writing not less than the effective date of the fact of any sale, transfer, lease, assignment, receivership, or bankruptcy proceedings, excluding the financial details thereof.

Leasing

(c) The Employer shall give notice of the existence of this Agreement to any

purchaser, transferee, lessee, or assignee of the operation covered by the Agreement or any part thereof.

Sub-Contractors

(d) The Employer shall not transfer, contract, or sub-contract out any work that

the regular employees classified under this Agreement are competent to perform, and/or for which the Employer has the facilities and equipment to perform such work.

10. GRIEVANCE PROCEDURE

(a) Whenever any dispute arises between the Employer and the Union, or between the Employer and one (1) or more employees, the employees shall continue to work and the dispute shall be adjusted in accordance with the following procedures.

Time limit to institute this Grievance Procedure shall be ten (10) working days excluding the days the employee is on Annual Vacation, to initiate the grievance procedure. The Employer will have ten (10) working days to respond from the time the grievance is filed (written form). If the Employer does not respond within those ten (10) working days, then the grievance shall be deemed resolved as per the written grievance. Time limits for the Employer to notify an employee of its intention to deal with his/her infraction shall also be ten (10) working days, from the date the Employer first becomes aware of the infraction. However, the Employer

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shall endeavour to complete any investigation within thirty (30) working days of it becoming aware of the infraction If the Employer is unable to complete the investigation within the thirty (30) day period, the Union shall be so advised and the thirty (30) day time period will be extended, the length of the extension shall be determined by mutual agreement of both parties. If any suspension notice is given to an employee, the Employer must carry out the suspension within 2 weeks subsequent to the notice.

In any dispute over a pay cheque or pay statement, or any matter thereon, the time limit shall be calculated from the date the employee received the pay cheque or pay statement. When there has been a grievance resolved by both parties and the money is to be paid, it must be paid within a two (2) pay time period.

Step 1: Any grievance of an employee shall first be taken up between

such employee and the employee's supervisor, however, the employee will be entitled to be represented by a Shop Steward.

Step 2: Failing settlement under Step 1, such grievance shall be taken

up between a representative of the Union or a Shop Steward and the employee's supervisor.

Step 3: Failing settlement under Step 2, either party may refer the

matter to an agreed upon neutral arbitrator who will meet with the authorized representatives of the Union and the Employer to hear both sides of the case.

Minister of Labour

(b) If the parties fail to agree upon a neutral arbitrator within five (5) days

(excluding Saturdays, Sundays and General Holidays) after the party has served written notice on the other party of its intention to refer the matter to a neutral arbitrator, the Minister of Labour will be requested to appoint a neutral arbitrator.

Arbitrator's Decision

(c) The arbitrator shall be required to hand down his decision within fourteen

(14) days (excluding Saturdays, Sundays and General Holidays) or such longer period of time as mutually agreed by the parties following completion of the hearing and his decision will be final and binding on the two (2) parties to the dispute and shall be applied forthwith.

The decision of the arbitrator shall be specifically limited to the matter submitted to him and he shall have no authority in any manner to amend, alter or change any provisions of this Agreement except where otherwise specifically provided herein.

(d) If the Arbitration Board finds (or if at any earlier stage of the Grievance

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Procedure it is found) that an employee has been unjustly suspended or discharged, or improperly laid off, that employee shall be reinstated by the Employer without loss of pay and with all his rights, benefits and privileges which he would have enjoyed if the suspension or discharge, or layoff had not taken place. However, if it is shown to the Board that the employee has been in receipt of wages from other jobs during the period between discharge or suspension or layoff, and reinstatement, the amount so received shall be deducted from wages payable by the Employer pursuant to this clause less any expenses which the employee has incurred in order to earn the wages so deducted. Also, the Arbitration board, if circumstances are established before it, which in the opinion of the Arbitration Board, makes it just and equitable to do so, shall have the authority to order the Employer to pay less than the full amount of wages lost.

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(e) If the award of the Arbitration Board is subsequently set aside by a Court of competent jurisdiction, the question shall, at the request of either party, be submitted to another Arbitration Board appointed pursuant to and with all powers provided by this Clause, unless otherwise ordered by the Court.

(f) Any discharged or suspended employee may, within seventy-two (72) hours

of his discharge or suspension, in writing, require the Employer to give him the reasons for his discharge or suspension, and the Employer will give him such reasons for his discharge or suspension, in writing, within seventy-two (72) hours of such request. The seventy-two (72) hours shall be within three (3) working days, excluding weekends.

Only the reasons set out in writing may be argued before a Board of Arbitration.

(g) The parties may, upon mutual agreement, refer any outstanding grievance

to the Canadian Joint Grievance Panel process as outlined in Appendix “A” that is attached to and forms part of, this Agreement. The Panel decision shall be final and binding on the Parties. The Panel shall not have the authority to change this Agreement or to alter, modify or amend any of its provisions. However, the panel shall have the authority to dispense of a grievance by any arrangement that is deemed just and equitable. It is further agreed that in the event the Panel is unable to render a majority decision that the grieving party may refer the matter to a Schedule II Hearing under the Panel process, refer the matter back to the arbitration process as outlined above in this Article or, withdraw the grievance.

11. PAY PERIOD

(a) Except, if otherwise mutually agreed between the parties, all employees covered by this Agreement shall be paid not less frequently than on every other Friday and whenever possible, on every other Thursday instead of Friday. The pay cheques shall cover all unpaid wages up to and including the previous Friday. The pay period shall commence every other Saturday at 12:01 A.M. The Employer shall provide every employee covered by this Agreement with a separate or detachable written or printed itemized statement of all wage payments made to such employee. Such statement shall set forth the date of the pay period, the total hours worked, the total overtime hours worked, the rate of wages applicable, and all deductions made from the gross amount of wages. The statement shall include also the employee’s regular hours worked year to date, overtime hours worked year to date, banked overtime hours year to date, banked overtime hours remaining. Each quarter the Employer shall provide every employee with a statement which shall include regular hours paid anniversary year to date and vacation paid anniversary year to date. Pay cheques shall be placed in individual envelopes and shall be available not later than 11:30 A.M. of the pay day. The Employer needs to work with the one (1) week holdback on pay for direct payment.

(b) Whenever an error occurs on an employee's pay cheque, the following shall

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apply:

If the error is to the disadvantage of the employee and is more than one hundred dollars ($100.00), a cheque covering such error shall be issued to the employee not later than seventy-two (72) hours, excluding Saturdays, Sundays and General Holidays, following the pay day on which such error occurred. If the error to the disadvantage of the employee is one hundred dollars ($100.00) or less, such error shall be corrected on the next regular pay day. If the error is to the disadvantage of the Employer, the amount paid in error to the employee shall be withheld on the next regular pay day. In any event, the error shall be corrected within two pay periods or waived.

(c) Discharged employees will receive their final pay within forty-eight (48) hours

from the time of discharge. When an employee voluntarily quits, he will receive his final pay within six (6) days of the day of termination.

(d) If requested, the Employer will make payroll deductions for Canada Savings

Bonds, provided that the employee making the request agrees to abide by the procedures established by the Employer and to authorize the Employer to make advance deductions to cover periods of layoffs.

12. ANNUAL VACATION

(a) No later than March lst of each year, the Employer shall post a vacation list on the Bulletin Board(s) and each employee shall indicate his vacation preference thereon not later than April 15th. Vacation period preferences shall be governed by seniority and when the vacation period is established, it shall not be changed except by mutual agreement between the Employer and the employee. An employee who does not submit his written vacation preference to the Employer by April 15th shall be entitled to schedule his vacation on a "first come" basis, provided it does not interfere with those vacations of employees which have already been scheduled. In such circumstances, the employee's vacation shall be taken in the same vacation year, upon fifteen (15) days written notice to the Employer. In the case where, on the same day, more than one employee requests overlapping vacation periods, the vacation shall be scheduled on the basis of seniority, where necessary.

Except as provided herein, vacations shall be taken in one (1) unbroken period unless otherwise requested by the employee subject to the Employers' right to regulate the number of employees to be absent at any one (1) time.

(b) An employee's anniversary date of original hiring shall be used as the date

to calculate an employee's vacation entitlement and payment. Provided that an employee has used up his/her vacation entitlement, any payment due as determined by virtue of (d) (i), (ii), (iii), (iv), & (v), shall be paid within two (2) weeks' following his/her anniversary.

(c) All employees shall receive vacation pay cheques on the last day worked

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prior to receiving said vacation. Vacation pay cheques shall be issued separately from any other cheques.

(d) Employees shall receive:

(i) Upon completion of each year of continuous service, two (2) weeks'

vacation and pay in the amount equal to four percent (4%) of the gross wages paid that employee during the year in which he qualifies for such vacation, or eighty (80) hours' wages at the normal hourly rate the employee is receiving when he takes his vacation, whichever is greater, or

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(ii) Upon completion of three (3) years of continuous service, three (3) weeks' vacation and pay in the amount equal to six percent (6%) of the gross wages paid that employee during the year in which he qualifies for such vacation, or one hundred and twenty (120) hours' wages at the normal hourly rate the employee is receiving when he takes his vacation, whichever is the greater, or

(iii) Upon completion of seven (7) years of continuous service, four (4)

weeks' vacation and pay in the amount equal to eight percent (8%) of the gross wages paid that employee during the year in which he qualifies for such vacations, or one hundred and sixty (160) hours' wages at the normal hourly rate the employee is receiving when he takes his vacation, whichever is the greater, or

(iv) Upon completion of ten (10) years of continuous service, five (5)

weeks' vacation and pay in the amount equal to ten percent (10%) of the gross wages paid that employee during the year in which he qualifies for such vacations, or two hundred (200) hours' wages at the normal hourly rate the employee is receiving when he takes his vacation, whichever is the greater, or

(v) Upon completion of twenty-two (22) years of continuous service, six

(6) weeks' vacation and pay in the amount equal to twelve percent (12%) of the gross wages paid that employee during the year in which he qualifies for such vacations, or two hundred and forty (240) hours' wages at the normal hourly rate the employee is receiving when he takes his vacation, whichever is the greater.

(e) A minimum of thirteen hundred (1300) hours paid within the year shall

constitute one (1) year's service for the purpose of vacation entitlement.

All hours paid under the following circumstances shall accumulate and be credited towards vacation entitlement:

(i) regular hours worked and paid (ii) overtime hours worked and paid (iii) vacation hours paid (iv) hours paid under the Compassionate, Bereavement or Jury Duty

leaves.

(f) When an employee terminates for any reason prior to having worked thirteen hundred (1300) hours since his vacation cut-off date, he shall be paid vacation pay in the appropriate percentage amount as contained in Section (d) (i), (ii), (iii), (iv), or (v) of this Article.

(g) Absence by reason of accident or illness shall be counted as hours worked

in the intervening years in units of six (6) years for a period not to exceed five hundred (500) hours if the employee has less than thirteen hundred (1300) hours of work in that year to qualify for a vacation herein stipulated.

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In any year where an employee has not qualified for a full vacation as a result of accident, layoff or illness, he will still be credited with a year of service to determine future vacations.

(h) Subject to the provisions in Article 12 (e) and (g) are satisfied, employees

having completed a minimum of one (1) year's service may take a maximum of one (1) week's vacation prior to their anniversary date and a maximum of two (2) weeks if more than seven (7) years' of service.

13. GENERAL HOLIDAYS (a) Employees completing ten (10) days' service with the Employer shall be paid

time not worked at the regular rate on New Year's Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day, Boxing Day, Easter Monday, and B.C. Day. In addition hereto, two (2) Floater Holidays shall be observed yearly. Subject to the Employer’s ability to regulate the work force to meet customers’ requirements, the employee will be given a Floater day off within one (1) month of the request. One (1) Floater must be taken by July 1st and the other by December 1st of each year. In the event a General Holiday is proclaimed or declared by the Federal, Provincial or Municipal Government, such proclaimed or declared holiday shall be observed as a General Holiday with pay and not be considered a substitute for the Floater Holiday. All General Holidays and Floaters will be paid at the employee’s normal working hours (e.g. eight [8] or ten [10] hours).

(b) Employees who are available for work but who have been laid off within

fourteen (14) calendar days prior to a General Holiday or have been recalled to work within fourteen (14) calendar days after a General Holiday shall be entitled to the Holiday with pay. Employees who are absent due to illness, injury or layoff either or both the day before or the day after a General Holiday will be paid for the Holiday provided, in the case of injury or illness, they can provide a doctor's certificate upon the request by the Employer as set out in Article 5, Section (a). Employees who are off on WCB or WI will not be paid for General Holidays.

Any employee entitled to receive pay for a General Holiday who works on such day shall be paid double time for all time worked plus General Holiday pay.

(c) In the event that a General Holiday falls on an employee's rest day, or during

the period that the employee is absent on annual vacation, the employee shall be entitled to another day off, with pay, in lieu of that General Holiday.

The alternate day off shall be at the employee's discretion provided the employee gives the Employer fourteen (14) days notice prior to taking such day.

(d) Any employee on leave of absence shall not be entitled to General Holiday

pay.

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14. SENIORITY

(a) There shall be one (1) overall Seniority List.

(b) The Seniority List shall be posted on the Bulletin Board every three (3) months, with a copy to the Union.

(c) The principle of seniority shall prevail in the filling of new jobs and vacancies,

in the reduction of the work force and in the re-hiring of laid off employees, and provided that the employee has the ability to perform the job. (except for a ticketed trade person.) In the event of a layoff of employees senior to a ticketed tradesperson, the ticketed tradesperson will only work on those days where they are required to perform work related to their trade certification. Once those days are completed they will be subject to layoff and Article 16(iii) will not apply.

(d) When the Employer determines that there are to be new jobs or vacancies to be filled, these shall be promptly posted for five (5) working days on the Bulletin Board(s) and all regular employees shall be entitled to submit bids, however, the foregoing shall not preclude the Employer making temporary appointments during the posting and selecting period. The Employer shall designate the successful bidder on the original posting notice at the time of the appointment. After such time the temporary employee shall return to his regular position. An employee, who applies for a permanent posted job and is the successful bidder, shall not again apply for another posted job for a period of three (3) months. This shall not apply should an additional posting appear within a period of two (2) weeks after the original posting, or where such positions have a higher rate of pay, or the position for which he successfully bid no longer exists.

Employees absent on Vacation, Weekly Indemnity, Workers' Compensation, or Maternity Leave shall be entitled to bid on postings within five (5) working days of their return to employment provided that such return is within two (2) months of the date of the posting. The Employer will send a registered letter to the employee's last known address informing them of such postings.

If the Employer requires a job to be filled by any employee not posted to that classification, for more than one hundred and sixty (160) hours within a two (2) month duration, then the Employer will post the job in accordance with 14(c) & 14(d), once the one hundred and sixty (160) hours is reached. This will not apply to replacement employees covering another employee off on vacation or leave of absence.

(e) If a decision is made to institute a permanent second shift (in excess of two

(2) months), the positions shall be offered in order of seniority to employees classified in that department, who are qualified and capable to perform the work available. If not enough employees volunteer then the Employer may assign the work by reverse seniority from those employees classified in that department, who are qualified and capable to perform the work available. Where a temporary second shift is required (for a period of less than two (2) months), the positions will be filled by the Employer following consultation

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with the Shop Steward Committee. The Employer will endeavour, subject to operational requirements, to institute a second shift for a minimum of two (2) months when such a shift is necessary.

Employees on the second shift will be paid at the rate for the job being performed.

(f) If the Employer decides to institute a temporary job or fill a temporary

vacancy the posting procedure outlined in 14(d) shall prevail if the job is expected to be more than one hundred and sixty (160) hours in duration, and selection shall be pursuant to 14(c). If the temporary job is less than one hundred and sixty (160) hours in duration, or is for the purposes of relieving an employee who is off on vacation or leave of absence, then it shall not be posted and the job shall be offered first by seniority to employees posted in the department and second by overall seniority, amongst those employees who are qualified and capable to perform the job. If not enough employees volunteer then the Employer may assign the work by reverse seniority from those employees who are qualified and capable to perform the job. The temporary job shall be posted every 3 to 6 months as deemed necessary. If there is a need to reduce the number of employees within a department, employees temporarily posted or placed into that department will be displaced prior to permanently posted employees. It is understood that such employees will be displaced back to their original classification by seniority.

(g) In the event of a layoff the last employee hired shall be the first laid off

subject to the competence of the employees remaining to perform the work and subject to the laid off employee's right to fill, if qualified and competent, any vacant position. Laid off employees shall be rehired in the order of their Seniority.

(h) An employee's name shall be stricken from the seniority list and the

Employer shall be under no further obligation to the employee if the employee:

(i) Voluntarily terminates. (ii) Is discharged for proper cause. (iii) While on layoff, an employee fails to report to the Employer his/her

availability for work within five (5) working days after being recalled by proof of registered mail at the last address provided to the Employer by the employee.

(iv) Is on layoff for twelve (12) consecutive months. (v) Is on leave of absence for injury or illness. Employees who have not

worked ten (10) years will have their seniority frozen after two (2) years till they return to work and then continue on. Employees with more than ten (10) years will have their seniority frozen after three (3) years till they return to work and then continue on.

(i) When an employee within the bargaining unit covered by this Agreement

receives leave of absence to take a position with the Employer which is

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beyond the sphere of the bargaining unit, he shall retain and accumulate his seniority for a maximum of ninety (90) calendar days within the former unit. Notice shall be given the Union in writing prior to the employee leaving the bargaining unit.

No later than on the ninetieth (90th) calendar day of this period, the employee must exercise his seniority rights. Should the employee return or be returned to the bargaining unit for any reason, he must remain within the unit for a maximum period of one hundred and eighty (180) calendar days prior to exercising such privilege again.

(j) When the Employer determines that specialized training is required it shall

post such training opportunities. The posting shall state the nature of the training, the number of employees to be trained. Subject to operational requirements, applicants shall be selected by seniority, first from those employees currently working in the classification in which the training applies, second to employees posted to the department and third to all other bargaining unit employees. Employees who have received similar training in the past and were unable to perform the job to the satisfaction of the Employer, may not be eligible for further similar training for a period of eighteen (18) months.

15. NEW EQUIPMENT OR CLASSIFICATION, TECHNOLOGICAL CHANGE

Where new types of equipment or new classifications, for which rates of pay are not established by this Agreement, are put into use, such rates shall be subject to negotiations between the parties. Rates agreed upon or awarded shall be effective as of the date the equipment or classification is put into use. Should the parties fail to agree on such rates, the matter may be referred to the Grievance Procedure by either party.

Technological and Mechanical Changes:

(a) Definition - Technological and mechanical changes shall be defined to

mean the introduction and utilization of vehicular and other equipment changes which have not previously been used within the bargaining unit and the use of which results in the termination or the laying off of regular employees.

(b) Recognition by Parties - Both parties to this Agreement recognize that

technological and mechanical changes that result in the increased efficiency and productivity must be encouraged and further, that both parties have a direct responsibility to reduce to a minimum the adverse affects that may result from such changes.

(c) Prior Notification - The Employer shall advise the Union as far in advance

as possible, and not less than thirty (30) calendar days prior to the introduction of technological or mechanical changes, and the matter shall immediately become the topic of general discussion and consultation

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between the Employer and the Union, and particularly in regard to:

(i) the effect such changes will have on the number of employees within the bargaining unit;

(ii) the probable effect on working conditions; (iii) any changes in job classification.

(d) Dislocated Employees - In the event technological or mechanical changes

result in a reduction in the work force or the demotion or promotion of employees, such reductions, demotions or promotions shall be done in accordance with the provision of Article 14, Seniority, as contained herein.

(e) Re-training and Upgrading - The parties jointly and individually will

undertake with the assistance of Canada Manpower and through recognized provincial or local adult training programmes, if necessary, to re-train and upgrade regular employees to enable them to become qualified and capable of performing new jobs resulting from or created by the technological or mechanical changes.

16. DAYS AND HOURS OF WORK AND OVERTIME

(a) The following hours of work shall apply to all employees:

(i) The regular work week shall be Monday to Friday. The regular work day on the day shift shall be eight (8) hours paid for eight (8) hours worked. The regular work day on the afternoon shift shall be nine (9) hours paid for eight (8) hours worked. There will be voluntary start times at 4:00 A.M. or 5:00 A.M. for the Departments in which the Employer requires.

The starting time for the day shift shall be between the hours of 6:00 A.M. to 8:30 A.M, the Employer recognizes the employees' desire to start as early as possible. The Employer shall make every attempt to have the normal start time at 6:00 A.M., providing weather conditions or vessel discharge times do not dictate otherwise. The starting time for the afternoon shift shall be between the hours of 11:00 A.M. to 4:00 P.M. Except where a job is eliminated an employee's starting time or work shift shall not be changed unless the employee is given forty-eight (48) hours prior notice. No employee shall be compelled to take his lunch period before he or she has been on duty three and one-half (3 1/2) hours or after he or she has been on duty five (5) hours.

Employees shall receive a five (5) minute clean-up time at the end of the shift.

(ii) The regular work week shall be five (5) consecutive eight (8) hour

days, Monday to Friday inclusive, with Saturday and Sunday, respectively, as rest days. Except where a job is eliminated an employee's regular work week shall not be changed unless the

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employee is given forty-eight (48) hours' prior notice.

(iii) The most senior seventy-five percent (75%) of the regular employees who work during a specific week shall, be guaranteed the equivalent of forty (40) hours wages for that work week.

The remaining twenty-five percent (25%) of the regular employees who work during a specific week shall be guaranteed the equivalent of twenty-four (24) hours' wages for that work week. The twenty-four (24) hours shall be consecutive days worked.

Employees who have booked off or reported off sick will receive pay for only those hours worked. If a replacement person is used to fill the vacancy, his pay will be only for the time worked in the classification and not necessarily guaranteed forty (40) hours or twenty-four (24) hours. Employees called in as replacement employees will be given a one (1) hour travelling time allowance from the time of the call-in. This way, a replacement employee will be paid a maximum allowance of one (1) hour and in no event shall be paid more than eight (8) hours or less than six (6) hours for a regular eight (8) hour shift. Management shall endeavour to call replacement employees prior to the normal start time.

(iv) Overtime worked on a regular day shall be double time. On a regular

working day overtime shall commence after an employee has completed eight (8) hours at the regular rate.

Overtime worked on a Saturday shall be four (4) hours guaranteed, and all time worked shall be at double time.

All time worked on Sunday shall be at double time rates of pay, and four (4) hours guaranteed.

(v) All overtime shall be voluntary on a strict seniority basis provided the

senior employee is qualified and capable of performing the work available.

First Priority - people posted in the Department on seniority basis. (If no overtime is available in the classification in that department, the employee may carry his/her seniority to the next classification in that same department where overtime work is available.)

Second Priority - people working in the Department for the day on seniority basis. People who refuse to work in the Department for the day may not claim for overtime.

Third Priority - overall seniority.

Fourth Priority - any probationary employee of the Employer's choice pursuant to Article 3 Section (1) (a).

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If an employee upon request by the Employer returns to work before he or she has had a rest period of at least ten (10) hours, all hours worked within such ten (10) hour period shall be paid at overtime rates except where an employee changes shifts at his or her own request or by reason of seniority. In the event that overtime is required to complete a certain project, those junior employees who are working in their classification may work up to four (4) hours per week to complete the said project. This is with the understanding that the senior employees in that department have not been trained to do the job due to the short duration of the project.

Employees who are assigned to work in a department other than their classified department will retain their entitlement to overtime in their classified department (First Priority) and the temporary department (Second Priority). However, if an employee volunteers to work in a department other than their classified department they lose their entitlement to overtime in their classified department (First Priority), but are entitled to overtime in the temporary department (Second Priority).

(vi) When an employee is requested to work overtime in excess of two

(2) hours beyond the regular work day, the employee shall be entitled to paid time off, not in excess of one-half (1/2) hour, for the purpose of eating and such lunch period shall be as designated by the Employer. In addition to the paid meal break, the employee shall receive a $5.00 meal allowance to be paid by the next pay cheque, and the employee's record of earnings to be updated accordingly. Employees shall be allowed to work through the lunch break and will be paid an extra one half (½) hours pay at the appropriate overtime rate and shall also receive the meal allowance.

(b) All employees shall be entitled to one (1) rest break of fifteen (15) minutes

during both the first (1st) and second (2nd) half of any shift and during each two (2) hour period of overtime excepting during that period where a lunch period is provided under (vi) above.

(c) The Employer shall provide a system for accurate recording of each

employee’s time and pay will be made accordingly. Upon request to the supervisor an employee shall be provided with available information. The Employer shall notify an employee of a time clock discrepancy within twenty-four (24) hours of the Employer becoming aware of it.

(d) When an employee from a lower rated classification is requested and

assigned, by the Employer, to work in a higher rated classification for less than four (4) hours, the employee shall be paid at the higher rate for all time worked up to four (4) hours. If the employee works in the higher rated classification for four (4) or more hours, then the entire shift shall be paid at

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the higher rate of pay.

An employee who is scheduled to work at a classification lower than his/her regularly posted classification shall be paid at the lower rate, except in the replacement situation, an employee having been recalled during the work week to his/her regularly posted higher classification shall be paid at the higher rate for the weekly guaranteed hours pursuant to Article 16 (a) (iii).

An employee replacing a higher paid employee who has booked off or reported sick shall be paid at the higher rate of pay only for the replacement hours.

(e) Employees shall be notified no later than midnight of the day previous to

their not being required for duty. In the event that an incident should occur that is totally beyond the control of the Employer and that lessens the anticipated work force on that particular day (i.e. poor weather conditions, power outages, rail problems, or third party strikes, etc.) the Employer reserves the right to contact the employee, prior to his leaving for work, to inform him that his services for that day are not needed as a result of the said conditions. If the Employer cannot reach an employee, and if the said employee does, in fact, reach the Employer's premises, the Employer shall guarantee that employee two (2) hours' wages at his applicable rate for travel time. The foregoing shall not have the effect of denying eligible regular employees the benefit of the balance of the weekly guarantee as contained in (ii) of this Article.

Employees who are absent through illness or injury must advise the Employer no later than 1:00 P.M. on the working day during Monday through Thursday, and 11:00 A.M. on Friday, prior to their being available for work or the Employer will not be obligated to provide work for such employees until proper notice is given by said employees. Such notice must be given to the Dispatcher or the employee's immediate supervisor, and a written record will be kept.

Employees who are absent from work due to injury or illness for a prolonged period of time shall report to their supervisors on a weekly basis, unless absence is for a specified period, their condition and when they will be available to return to work.

(f) Any employee who commences work at the designated starting time for

each shift shall always be guaranteed eight (8) hours' pay except in cases of temporary bookoff. Pay premiums for afternoon shift and graveyard shift shall be prorated when voluntary book off is offered.

(g) In the event of lay-off, the employee shall be notified by noon of the

employee's last working day prior to actual lay-off except, in the event that an accident should occur that is totally beyond the control of the Employer that lessens the anticipated work force (i.e. poor weather conditions, power

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outages, rail problems, third party strikes, mechanical break down, etc.), the Employer reserves the right to notify the employee prior to completion of the shift on the employee's last working day prior to lay-off. The foregoing shall not have the effect of denying eligible regular employees the benefit of the weekly guarantee as contained in (ii) of this Article.

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17. COMPENSATION COVERAGE

When a regular employee is injured at work and goes on Compensation he shall, when the Compensation Board signifies that the employee may go to work, be returned to the payroll at his previous job and rate of pay for a period of one (1) week to see if he is able to do the job he held at the time of the injury.

If, after that time, it is proven to the Employer the regular employee is unable to do the job the employee held at the time of injury, the Employer will try to place the employee in any available job which the employee is capable of performing and which his seniority would entitle him to occupy. If this is impractical, then the employee shall be entitled to choose:

(i) to receive one (1) week's severance pay at which time his employment will

be terminated; or (ii) if the employee returns from WCB or CU&C and is found not fit to return to

his classification, then said employee will be put as a floater until a posting in any other classification becomes vacant to post to.

A regular employee who does not exercise any choice between clauses (i) and (ii) above shall be deemed to have chosen clause (i).

18. SAFETY AND HEALTH

(a) The Employer shall make reasonable provisions for the safety and health of the employees during the hours of their employment and proper First-Aid kits will be supplied and a qualified First-Aid Attendant will be on duty.

Such First-Aid Attendant shall be chosen from the bargaining unit by method of postings and the Employer agrees to maintain a minimum of six (6) First-Aid Attendants during the term of this collective agreement. The senior employee applying shall be trained on the following basis:

(i) There shall be two (2) paid Attendants per shift when there are more

than twenty-five (25) employees working, but if less than twenty-five (25) employees are working there will be one (1) paid Attendant. If there is overtime needed for a First-Aid Attendant, then it will go to the First-Aid Attendant in order of seniority of the shift. Where there is a second shift working at the same time as overtime is being worked on the first shift, first aid coverage shall be provided by the First-Aid Attendant on the second shift. .

(ii) The Employer will pay the employee's regular rate of pay during the formal training period.

(iii) The Employer shall pay for such course in advance and the employee will reimburse the Employer when he/she is deemed unsuccessful in completing the course by 18 (a) (iv) and paragraph 2 of 18 (a) (vii).

(iv) Should the employee fail his first formal training course, he shall not be permitted to re-apply for a two year period.

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(v) Qualified First Aid Attendants on duty will be granted a pay differential in addition to their regular hourly rate of seventy-five cents (75¢) per hour.

(vi) The Employer shall pay overtime rates on the applicable differential, i.e. 75¢ per hour according to Certificate. Should the employee work overtime on a lower paid classification, he shall be paid according to the classification worked plus the First-Aid Certificate differential on an overtime basis.

(vii) First Aid Attendants who becomes disqualified for having failed the required First-Aid Certificate renewal test the first time will be given one more opportunity to re-qualify, but he must be re-qualified within fifteen (15) days after the required waiting period. Failing which the vacant position will be posted.

(b) The Employer will provide, without cost to the employee, any equipment that

is required under the Workers' Compensation Board regulations.

(c) Any employee suffering any injury or employment induced illness while in the employ of the Employer must report same to the First-Aid Attendant immediately, or as soon thereafter as practicable, and a complete record of all such cases must be kept by the First-Aid Attendant.

(d) Any employee, who considers that any practice being carried out within the

premises is unsafe or detrimental to the safety of any person working therein, shall have the responsibility to speak to his superior about the matter. If the situation is not corrected in a reasonable period of time, the matter may be considered cause for a grievance to be handled through the Grievance Procedure.

(e) In the event of an employee becoming ill during his shift, the employee shall

report directly to the Supervisor stating his illness and if the employee wishes to go home or to a doctor due to such illness, permission to do so will be granted by the Supervisor and shall be so entered into a Record Book.

(f) Employees shall have the right to refuse to operate any Employer owned

equipment which is not in safe operating condition.

(g) The Employer will first exhaust its available laid off First-Aid Attendants before going outside of the bargaining unit for Attendants.

(h) The Employer will maintain a Joint Health and Safety Committee in

accordance with the provisions of the Workers’ Compensation Act.

(i) Where an accident investigation is required pursuant to the Workers’ Compensation Act, it shall be investigated by at least one (1) employer representative and one (1) employee representative in accordance with the Workers’ Compensation Act.

19. KEEP PROPER RECORDS

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Each employee shall, subject to the control of the Employer, keep proper records and make due and correct entries therein, of all transactions and dealings of and in reference to the business of the Employer insofar as the same comes under his jurisdiction and shall serve the Employer diligently and according to the best of his ability in all respects, and account for all monies collected on behalf of the Employer.

20. PERFORMANCE OF DUTY

Each employee, while on duty, shall devote the whole of his time, attention and energies to the performance of his duties. Employees shall not during the term of his employment at any time, alone, in partnership, or in association, be connected with or concerned in any other business competitive with the Employer's business and as a result directly or indirectly infringe on the well being of the Employer, unless written authorization is first obtained from the Employer.

21. INSPECTION PRIVILEGES

Authorized Agents of the Union, after informing the Employer's designee, shall have access to the Employer's establishment during working hours for the purpose of adjusting disputes, investigating working conditions and ascertaining that the Agreement is being adhered to. The Union agrees that there will be no disruption of work or the Employer's business by exercising the rights of this clause. The processing of legitimate grievances will not be considered a disruption of work.

22. UNION LABEL AND VENDING MACHINES (a) It shall not be a violation of this Agreement for an employee to post the

Teamsters Union Label in a conspicuous place on the vehicle or equipment he is operating, providing that he receives the Employer's permission as to the size and location of the said Union Label.

(b) The Employer agrees that in the event the Employer installs vending

machines of any type in its establishment, for the accommodation of the employees or customers, that the machine or machines shall bear the "Teamsters Union" Service Label, and the products contained therein shall be delivered by members of the Teamsters Union.

The Employer shall give the suppliers of coveralls, linens and propane gas who hold valid and subsisting agreements with the Teamsters Union the first opportunity to bid on any such products required by the Employer.

23. SAVINGS CLAUSE

(a) If any Article or Section of this Agreement should be held invalid by operation of law or by a tribunal of competent jurisdiction or if compliance with or enforcement of any Article or Section should be restrained by such tribunal, pending a final determination as to its validity, the remainder of the Agreement, or the application of such Article or Section to persons or circumstances other than those as to which it has been held invalid or as to which compliance with or enforcement of has been restrained, shall not be

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affected thereby.

(b) In the event that any Article or Section is held invalid or enforcement of or compliance with which has been restrained, as above set forth, the parties affected thereby shall enter into immediate collective bargaining negotiations, for the purpose of arriving at a mutually satisfactory replacement for such Article or Section during the period of invalidity or restraint. If the parties do not agree on a mutually satisfactory replacement, they shall submit the dispute to the procedure as outlined in the Grievance Procedure.

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24. HOURLY WAGE RATES AND CLASSIFICATIONS

EFFECTIVE EFFECTIVE EFFECTIVE CLASSIFICATIONS FEB. 1/06 FEB. 1/07 FEB. 1/08 1) Yard Lead Hand $27.73 $28.43 $29.13 2) Checker/Surveyor 27.08 27.78 28.48

3) Rail Surveyor/Loader 27.08 27.78 28.48 4) Yard Drivers 23.69 24.39 25.09 5) Rail Lead Hand 27.73 28.43 29.13 6) Rail Car Loaders

- 1 month 25.78 26.48 27.18 - Thereafter 26.97 27.67 28.37

7) Transport Driver 26.97 27.67 28.37 Subsistence and layover allowances to be the same as provided in the agreement between the Teamsters and Allied Systems (Canada) Company

8) Lead Hand Mechanic 31.19 31.89 32.59 9) General Mechanic 30.62 31.32 32.02 10) Maintenance Personnel 25.23 25.93 26.63 11) Lead Hand Bodyshop 1 31.18 31.88 32.58 12) Lead Hand Bodyshop 2 27.73 28.43 29.13 13) Journeymen without

Journeymen Certificate 30.07 30.77 31.47

Any Bodyshop employee that has a Journeyman's Certificate issued by the B.C. Government 30.50 31.20 31.90

14) Painters 30.50 31.20 31.90 15) Body Shop Helpers

- First three months 22.63 23.33 24.03 - Next three months 24.09 24.79 25.49

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- Thereafter 24.82 25.52 26.22 16) Body Shop Prep Man 25.23 25.93 26.63 17) Lexus Inspector 26.97 27.67 28.37

18) Undercoaters 25.49 26.19 26.89 NOTE: There are no alternate postings anywhere. 25. INSURANCE

All employees required to drive off Employer's property shall be provided, free of charge, with adequate insurance. Should the Employer fail to provide this coverage, the Employer shall be responsible for all fines, bills, lawsuits incurred, or insurance claims incurred by employees in the performance of their duties as required by the Employer. Any employee driving for the Employer outside the Employer's property must have a valid Drivers' Licence.

26. JURY DUTY, BEREAVEMENT, INJURY PAY

(a) Jury Duty: All time lost by an employee due to necessary attendance on Jury Duty or any Court proceedings arising out of his employment, or in completing driver's tests or doctor's examinations in connection therewith, or being subpoenaed as a witness at a trial shall be paid for at the rate of pay applicable to said employee. Any employee on Jury Duty shall, subject to this provision, make himself available for work before or after being required for such duty, wherever practicable. All Jury Duty pay or witness fees received by the employee from the Courts shall be reimbursed to the Employer.

Notwithstanding the foregoing, this clause shall have no application for an employee on leave of absence, or when receiving benefits under the Health and Welfare Plan, Workers' Compensation or on a General Holiday or a day observed as a General Holiday, nor if the employee is a witness in any proceedings or litigation where the Employer is a defendant unless the employee is called to testify for the Employer.

(b) Bereavement: When death occurs to a member of a regular full time

employee's immediate family, the employee will be granted, upon request, an appropriate leave of absence and he shall be compensated at his regular straight time hourly rate for the days prior to the funeral, the day of the funeral and the day after the funeral, for a maximum of three (3) days. When death occurs to an immediate member outside of the Province, the employee will have a maximum of five (5) days (three [3] days that would be paid for and two [2] days without pay). Members of the employee's immediate family are defined as the employee's spouse, mother and father, sons and daughters, brothers and sisters, mother and father-in-law, grandmother and grandfather.

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Employees shall be granted one (1) day off with pay for brothers and sisters-in-law who have died provided they attend the funeral.

In the case of death occurring to the members of the employee's family, while such employee is on paid time off, he shall receive bereavement pay.

(c) Injury Pay: When an employee meets with an accident at work, he shall be

paid a full day's wages for the day of the accident, provided it is necessary that he be absent from work for the balance of the day or longer on the instructions of a qualified First-Aid Attendant or physician; and provided he does not receive payment from the Workers' Compensation Board for the balance of that day.

(d) Birth of Baby: When an employee's wife gives birth the employee will be

granted one (1) day's leave with pay at his regular hourly rate to be taken within a week of the birth of the baby.

(e) Compassionate Leave: The Employer shall grant leave of absence without

pay for up to twenty-six (26) weeks to an employee who is likely to be, or is eligible for Employment Insurance Compassionate Care benefits. The employee must provide the Employer with a copy of documentation submitted to Employment Insurance to support such a claim and must inform the Employer as to whether or not the benefit has been granted and the duration of the benefit period.

27. MEDICAL EXAMINATION

(a) Any medical examination requested by the Employer shall be promptly complied with by all employees, provided however, that the Employer shall pay for all such examinations. The Employer reserves the right to select its own medical examiner or physician and the Union may, if in its opinion it thinks an injustice has been done an employee, have said employee re-examined at the Union's expense.

When a medical examination is required by the Employer, the following conditions shall apply:

(1) If a medical is required to be taken during working hours, such time

will be paid at regular rates of pay. Where they are required outside of normal working hours or on a Saturday, the employee shall receive at least three (3) days advance notice and one (1) hour's pay at straight time rates.

(2) In all cases, employees shall be supplied a copy of the medical

report.

(b) If, following an Employer requested medical examination, any employee is deemed to be physically incapable of carrying out his regularly assigned duties, the following procedure shall be followed:

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(1) The Employer shall notify the Union of the medical findings in respect to the employee. Should the Union or the employee disagree with the said findings, the employee at his own expense shall have the right to be examined by his personal physician.

(2) Where there is no agreement between the Employer appointed

physician and the employee's physician on the condition of the employee, the two (2) physicians shall select a medical consultant to examine the employee with respect to the dispute.

(3) The findings of the consultant shall be final and binding on all parties.

(4) The remuneration of the consultant shall be borne equally by the

Employer and the Union.

(5) Should the consultant deem the employee to be capable of carrying on his assigned duties, then the employee shall not suffer any loss of earnings caused by his having been removed from or temporarily suspended from his regularly assigned duties.

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28. HEALTH AND WELFARE PLAN

(a) Effective February 1, 2003, the Employer agrees to continue participation in the Teamsters Local 213 Miscellaneous Division Health and Welfare Plan and Trust Fund (The Plan and Fund) for all employees subject to the jurisdiction of this Agreement (hereinafter referred to as employees). To be eligible for Health and Welfare benefits, the employee will have to work more than twenty-four (24) hours in a month. The Employer will continue and/or commence contributions to the Plan and Fund on the following basis:

(1) from the effective date for all regular employees who have completed

the requirements set forth in (2) below; as of the effective date;

(2) for all other employees as of the effective date and all employees whose date of employment is after the effective date;

(i) from the first (1st) day of the month next following or

coincident with the date which is one (1) month after his date of becoming a regular employee, employment contributions shall commence with respect to all benefits except Dental;

(ii) from the first (1st) day of the month next following or

coincident with the date which is two (2) months after his date of becoming a regular employee, employment contributions shall commence with respect to Dental benefits;

(iii) from the date of employment for all benefits for any employee

subject to the transfer provisions of the Plan.

(b) The Employer agrees to make such monthly contributions to the Trust Fund for the benefits to be provided to its employees as the Trustees of the Plan and Trust Fund shall establish from time to time and do such other things as may be required to become and remain an Employer under the Plan and Trust Fund.

(c) It will be the responsibility of the Employer to ensure that all employees

complete such forms as are required in the operation and administration of the Plan and for making the required contributions to the Trust Fund on their behalf. Failure of the Employer to secure the necessary administration forms from employees, forward completed forms and/or remit contributions on the due date to the Administrator as appointed by the Trustees will cause the Employer to be liable for any claims arising as a result of such failure. It shall be the Union's responsibility to supply all necessary administration forms to the Employer.

(d) The benefits as described below shall be provided to the employees in

accordance with the terms and conditions of the Plan and Fund:

Medical Services Plan of B.C. Payment of premiums for coverage at such rates as may be established from time to time

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by the B.C. Government which has not opted out

Group Term Life Insurance $40,000.00

Accidental Death and An amount equal to the Group Term Life Dismemberment Insurance Insurance

Weekly Indemnity Benefits 66 2/3% of weekly salary. Benefits to be paid on a

first (1st) day accident, fourth (4th) day sickness, 52 week duration basis (1/4/52) to a maximum per week, the amount being $30.00 more than the maximum weekly unemployment insurance benefit.

Long Term Disability Insurance 75% of monthly salary to a maximum of

$1,200.00

Dental Benefit Basic (Part A) - 100% coverage; Major Restorative (Part B) - 75% coverage; Orthodontic (Part C) - 50% coverage.

Extended Health Care Benefit $25.00 deductible, 100% reimbursement above

deductible with vision care. Eye examinations to be covered once every twelve (12) months, to a maximum of $100.00, effective the first day of the month following the date of ratification.

Prescription Drugs Prepaid Prescription Drug Benefit

However, if any employee is otherwise covered for M.S.P., the employee may opt out of the M.S.P. coverage under this Agreement. If such other coverage ceases, then it shall be the employee's responsibility to notify the Employer and to request coverage which the Employer shall then provide immediately.

(e) The Employer shall remit the required contributions under this Article to the

Administrator appointed by the Trustees of the Teamsters Local 213 Miscellaneous Division Health and Welfare Plan by the tenth (10th) day of the month for which such contributions are due. Cheques are to be made payable to the Teamsters Local 213 Miscellaneous Division Health and Welfare Plan.

(f) The Employer shall remit contributions for employees who are absent from

work due to an illness, accident or maternity leave which shall be fifty-two (52) weeks in accordance with Article 5 (a). The Employer shall also remit contributions for employees who are absent from work due to Compassionate Care requirements in accordance with Article 26(e), to a maximum of twenty-six (26) weeks.

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(g) When an employee becomes laid off he/she may contribute for an extension of services. Medical Services Plan of B.C., Extended Health Care Benefits and Prepaid Prescription Drug Benefit up to ninety (90) days but must pay for the whole ninety (90) days.

If he/she wishes not to be involved he/she will not lose any recall or seniority rights.

(h) The full cost of the Health and Welfare Plan shall be borne one hundred

percent (100%) by the Employer. Common law spouses shall be covered by the Health and Welfare Plan after one (1) year.

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(i) Sick Leave

An employee who has been absent from work due to sickness and has received income from the Weekly Indemnity policy under the Teamsters Local 213 Miscellaneous Division Health and Welfare Plan and Trust Fund will be paid by the Employer for only two (2) incidents per contract year. Employees who do not qualify for the Weekly Indemnity benefit for sickness do not qualify for this payment from the Employer.

Such payment by the Employer will be to cover the waiting period before benefits are payable under the Health and Welfare Plan above, but only to a maximum of 3 days. Payment shall be made by the Employer at 100% of the employee' regular rate of pay.

An employee who has not benefited from the above sick leave provision for any given year will be entitled to two (2) paid sick days in the following year. They will be paid at the hours at the time of use, example eight (8) or ten (10) hours. Unused paid sick days are non-cumulative.

29. HEADINGS

The Article Headings shall be used for purposes of reference only, and may not be used as an aid in the interpretation of this Agreement.

30. EMPLOYER'S RIGHTS

Subject to the terms of this Agreement, the Union recognizes that it is the function of the Employer to:

(i) Maintain order, discipline and efficiency; (ii) To discharge or suspend for proper cause; (iii) To direct or transfer employees from one (1) classification to another and to

move employees from one (1) location to another for reason; (iv) To increase and decrease the working force; (v) To make and alter from time to time non-discriminatory rules and regulations

to be complied with by the employees, a copy of which shall be given to each employee and to the Union.

31. RETROACTIVE PAY

The wages (including any pension contribution affected by increasing the wage rates) shall be retroactive to February 1, 2006. Retroactive pay shall be for each hour worked on or after February 1, 2006 for all employees still actively employed by the Employer as of the date of ratification.

32. MISCELLANEOUS

The Employer agrees to supply a fridge and stove in the lunch room. As renovations allow the Employer will supply an additional fridge and phone and will supply a microwave oven.

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33. BANKING OF OVERTIME

1. All regular employees may make arrangements with the Employer to bank accumulated overtime. The employee may then request his overtime in time off, in writing, 15 days in advance of such leave, and the Employer will reply in writing, within two working days. Upon request by the employee, such time off will be taken at the Employer's discretion, consistent with the efficient operations of the business. The minimum unit of banked overtime to be utilized will be eight (8) regular hours.

2. Any hourly paid employee who wishes to bank overtime will make a request

in writing, by the day following his worked overtime. Failure to apply in writing will result in the overtime being paid out.

3. Overtime which is banked shall be credited in terms of hours, and when

taken as time off, shall be paid out on the regular bi-weekly pay cheque at the same hourly rate as banked. When an employee leaves the Employer, all banked hours shall be paid out in total.

4. The Employer will keep a record of all banked overtime. Employees wishing

to confirm the amount of accumulated overtime they have banked may do so through their supervisor.

5. Example of banked hours:

1 hour at double time - 2 hours banked

6. The Employer will pay out all unused banked hours in the first pay period of

each December. The Employer will also pay out all unused banked hours in the first pay period of June to those employees who have put in a request at least two (2) months prior to the pay out. In addition, employees may request one other pay out of banked overtime by giving at least one (1) week's notice. If notification is given at least one (1) week before the pay day, payment of banked overtime hours will be included in the current pay period. Otherwise, the pay will be made the following pay day. Their hours will be paid out at the same hourly rate as banked.

7. An employee who is laid off may request to receive pay from his unused

banked overtime hours, provided that the employee advises the Employer, in writing, of his intention to do so prior to the commencement of the lay-off. The minimum unit of banked overtime to be utilized will be eight (8) regular hours.

34. MINIMUM STANDARDS

(a) It is intended that the provisions contained in the Employment Standards Act and Regulations (Act), presently in effect and from time to time amended are minimum requirements only.

(b) In the event this collective agreement does not contain a provision which is

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contained in the Act such provision shall be deemed to be incorporated in the collective agreement as part of its terms.

(c) In the event this collective agreement contains a provision which is a lesser

requirement than a similar or related provision contained in the Act, then the provision contained in the Act shall prevail, and shall be deemed to be incorporated in the collective agreement as part of its terms.

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(d) In the event a dispute arises respecting the application or interpretation of any provision of the Act which is deemed to be part of the terms of this collective agreement, the Grievance Procedure contained in this collective agreement, including Arbitration if necessary, shall apply for resolution of the dispute.

35. PENSION PLAN

1. Commencing with the first day of February 2006, and for the duration of the

current collective agreement between the Union and the Employer and any renewals or extensions thereof, the Employer agrees to make payments to the Teamsters Canadian Pension Trust Fund and Plan for each employee working in job classifications covered by the collective bargaining agreement equal to seven percent (7%) of his gross earnings received from the Employer.

Effective February 1, 2007 the Employer contribution shall increase to eight percent (8%) of an employee’s gross earnings.

Effective February 1, 2008 the Employer contribution shall increase to nine percent (9%) of an employee’s gross earnings.

Effective January 31, 2009 the Employer contribution shall increase to ten percent (10%) of an employee’s gross earnings

2. The Employer agree(s) to be bound by all of the terms, conditions and

provisions of the Agreement and Declaration of Trust under which the Teamsters Canadian Pension Trust Fund and Plan is established and to carry out all of the duties and responsibilities of an Employer under such Agreement and Declaration of Trust including, as appropriate, naming or participating in the naming of Employer Trustees and Employer representatives on a Retirement Committee as provided for under the Teamsters Canadian Pension Trust Fund and Plan.

3. It is understood that contributions shall be payable in respect to the gross

earnings of employees from the first day of employment after completion of their probationary period. It is further understood that gross earnings shall mean all amounts paid to an employee which are reported as earnings to the employee on a T-4 slip (or equivalent form should the designation of this form be changed) but shall not include amounts included as earnings on the T-4 slip which are taxable benefits.

4. Contributions along with a list of employees for whom they have been made,

the amount of gross earnings and the contributions in respect to the gross earnings for each employee shall be forwarded by the Employer(s) to the Trust Company or other financial institution acting as custodian of the assets of the Teamsters Canadian Pension Trust Fund and Plan and shall do so not later than twenty-one (21) days after the close of the Employer(s) four or five week accounting period.

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5. Each Employer shall permit upon the request of the Union or the Trustees, an auditor employed by either the Union or the Trustees, to carry out an audit of the Employer's accounting and other records to ensure that the Employer is paying to the Trustees all contributions due under the terms of the collective agreement. The accounting and other records to be audited will be restricted to those directly related to the calculation of the pension contribution.

6. The Employer shall also complete such forms and provide such information

as the Trustees and Administrator of the Teamsters Canadian Pension Trust Fund and Plan require from time to time in the administration and operation of the plan.

7. It is understood that:-

(i) Under the Teamsters Canadian Pension Trust Fund and Plan the

Employer(s) is (are) not liable to guarantee the benefits payable thereunder or assure the solvency of the Fund beyond the payment of contributions due pursuant to the Collective Agreement.

(ii) The Teamsters Canadian Pension Trust Fund and Plan is or will be

registered under the provisions of the Income Tax Act of Canada and any other applicable Federal or Provincial law respecting employee pension plans.

36. PROBATIONARY EMPLOYEES

All newly hired employees shall be considered as probationary employees for the first sixty (60) days worked. The purpose of the probationary period is to determine their suitability for continued employment. There shall be no responsibility on the part of the Employer respecting probationary employees should they be laid off for lack of work or discharged during the probationary period. After completion of the probationary period, the employee will become a regular employee.

37. SEVERANCE PAY

(a) Employees with one (1) year or more of service whose employment is terminated as a result of a technological change, or of the permanent closure of the whole operation of the Employer shall receive termination pay of one (1) week's pay for each year of completed service with the Employer, at the rate of pay the employee was receiving on the date of termination, to a maximum of thirteen (13) weeks' pay.

(b) For the purposes of paragraph (a) above, the term "permanent closure of the

whole operation of the Employer" shall mean the complete cessation of active employment by all employees in the bargaining unit for a period of six (6) consecutive months.

(c) Full time employees with one (1) or more years of service whose

employment is terminated (other than for reasons in (b)) shall be entitled to

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notice of termination or pay in lieu of notice at the rate of one (1) week for each year of service with the Employer, to a maximum of thirteen (13) weeks, at the rate of pay the employee was receiving on the date of termination. The employee may use (f) for the purpose of in lieu of.

(d) The above shall not apply when an employee resigns or is discharged for

just cause.

(e) Severance pay shall not be applicable in the event of a lay-off of an employee unless the lay-off without recall exceeds the period of twelve (12) months.

(f) The payment of severance pay will result in the employee's name being

struck from the seniority list.

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38. EMPLOYEE AND FAMILY ASSISTANCE PROGRAM

The Employer agrees to the implementation of an Employee and Family assistance program effective February 1, 2007 and will contribute up to fifty dollars ($50.00) per contract year for each employee who has completed probation.

IN WITNESS WHEREOF the Party of the First Part has hereunto affixed it signature(s) in the presence of its Officers duly authorized therefor, and the Party of the Second Part has hereunto affixed its signature(s) and seal by its Officers duly authority therefor. DATED AT Vancouver, British Columbia, this day of , 2007. PARTY OF THE FIRST PART PARTY OF THE SECOND PART

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LETTER OF UNDERSTANDING No. 1 BETWEEN: FRASER WHARVES LTD.

13800 Steveston Highway, Richmond, British Columbia;

AND: TEAMSTERS LOCAL UNION No. 213

affiliated with the International Brotherhood of Teamsters, 490 East Broadway, Vancouver, British Columbia;

This Letter of Understanding becomes effective February 1st, 2006, and expires January 31st, 2009. It is agreed between the parties to the collective agreement that the wage rates shown in the collective agreement are sufficient and intended to take into account expected increases in the cost of living as computed in the 2005 Base Vancouver "ALL ITEMS" column of the Consumers Price Index issued by Statistics Canada, however, if the C.P.I. as shown in the 2005 Base "ALL ITEMS" column for Vancouver exceeds five percent (5%) over base month, December 2005 C.P.I. anytime during the first year of this Agreement, adjustment on wages will be made on such basis as follows:-

i) for every 0.25 point of C.P.I. exceeding the five percent (5%) $0.01 per hour.

ii) the first cost of living allowance shall be effective the first day of the second

month following the month in which the C.P.I. exceeds five percent (5%) and thereafter during the first year of the Agreement, adjustment in the cost of living allowance shall be made monthly on the basis of monthly changes in the index.

iii) Cost of living allowance in the first year of the Agreement shall be added to

the present established second year increase.

iv) A cost of living allowance shall become a fixed part of the basic rate.

v) A decline in the index shall not result in a reduction of the base rate. A similar calculation will be made and implemented with respect to the second and third year of the Agreement, based on the C.P.I. for December 2006 and December 2007. DATED at Vancouver, British Columbia, this day of , 2007 PARTY OF THE FIRST PART PARTY OF THE SECOND PART

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LETTER OF UNDERSTANDING No. 2 BETWEEN: FRASER WHARVES LTD.

13800 Steveston Highway, Richmond, British Columbia;

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters, 490 East Broadway, Vancouver, British Columbia;

This Letter of Understanding becomes effective February 1, 2006 and expires January 31, 2009. It is agreed that there is a Sunday to Thursday shift needed when the Employer can provide that they have new business from today’s standards. When the shift is needed, the Employer and the Union will jointly sit down to discuss the hours of start and finish and whatever premiums that will go along with those shifts, but keep in mind they have the boundaries of the current agreement to work from. DATED AT Vancouver, British Columbia, this day of , 2007. PARTY OF THE FIRST PART PARTY OF THE SECOND PART

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LETTER OF UNDERSTANDING No. 3 BETWEEN: FRASER WHARVES LTD.

13800 Steveston Highway, Richmond, British Columbia;

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters, 490 East Broadway, Vancouver, British Columbia;

The employees will be able to work through lunch period and will be paid the eight (8) hours. DATED AT Vancouver, British Columbia, this day of , 2007. PARTY OF THE FIRST PART PARTY OF THE SECOND PART

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LETTER OF UNDERSTANDING No. 4 BETWEEN: FRASER WHARVES LTD.

13800 Steveston Highway Richmond, British Columbia;

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters, 490 East Broadway, Vancouver, British Columbia;

This Letter of Understanding becomes effective February 1, 2006 and expires January 31, 2009. It is hereby understood and agreed between the parties that when a four (4) day, ten (10) hour work week will be implemented for afternoon shift when required, the following conditions shall apply: 1. Notification shall be no later than 12:00 noon on the Friday

previous to the week in which the shift would apply. 2. The starting time may be between the hours of 2:00 P.M. and

4:30 P.M. 3. The four (4) days shall be four (4) consecutive ten (10) hour

days Monday to Thursday or Tuesday to Friday inclusive. 4. Overtime shall commence after an employee has completed ten

(10) hours at the regular rate. 5. General Holidays to be paid as a ten (10) hour day. 6. Rest breaks shall be twenty (20) minutes in duration. 7. The Employer will canvass the employees in the Department

that is affected in order of seniority first. The Employer may request a commitment from the employees up to six (6) months. The employee can only revoke the commitment in writing to the Employer prior to the end of the agreed term, for the following term.

If not enough employees commit, then the Employer will have the right to assign the work in reverse order of seniority from the bottom up to those employees. If more than enough employees commit, then the most senior employees will work first.

8. Either party can give written notice of thirty (30) days to

null and void this Letter of Understanding. DATED AT Vancouver, British Columbia, this day of , 2007.

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PARTY OF THE FIRST PART PARTY OF THE SECOND PART

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LETTER OF UNDERSTANDING No. 5 BETWEEN: FRASER WHARVES LTD.

13800 Steveston Highway Richmond, British Columbia;

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters, 490 East Broadway, Vancouver, British Columbia;

This Letter of Understanding becomes effective February 1, 2006 and expires January 31, 2009. It is hereby understood and agreed between the parties that when a third (graveyard) shift is required, the following conditions shall apply:

1. Before a third shift is scheduled, the Management and the Shop Stewards shall meet to discuss the necessity of the third shift

2. The scheduling of the third shift shall be on a week-to-week basis and notification shall be no later than 12:00 noon on the Friday previous to the week in which the shift would apply.

3. The shift shall start from 11:00 P.M. and end at 6:00 A.M. the following day, Sunday to Thursday.

4. The regular work day for the third shift shall be eight (8) hours paid for seven (7) hours worked.

5. The Employer may canvass the employees in the Department that is affected in order of seniority first. The Employer may request a commitment from the employees up to six (6) months. The employee can only revoke the commitment in writing to the Employer prior to the end of the agreed term, for the following term. If not enough employees commit, then the Employer will have the right to assign the work in reverse order of seniority from the bottom up to those employees. If more than enough employees commit, then the most senior employees will work first.

6. Either party can give written notice of thirty (30) days to null and void this Letter of Understanding, should it be proven that it has been abused.

DATED AT Vancouver, British Columbia, this day of , 2007. PARTY OF THE FIRST PART PARTY OF THE SECOND

PART

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LETTER OF UNDERSTANDING No. 6 BETWEEN: FRASER WHARVES LTD.

13800 Steveston Highway Richmond, British Columbia;

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters, 490 East Broadway, Vancouver, British Columbia;

Re: Weekly Scheduling

Notwithstanding anything contained in the Collective Agreement, the following process will apply when scheduling employees on a weekly or a daily basis:

1. For the purpose of this Letter of Understanding, there will be 3 departments, Yard,

Rail, and Shop. 2. The Employer will determine how many employees are required each week and

employees will be scheduled in order of seniority. Employees in each department will be assigned to work in their posted classifications in order of seniority. Schedules will be posted by Friday noon.

3. Where there is insufficient work in a department for all of the employees who have

seniority to be scheduled in a given week, the junior employees in that department shall be displaced and will be assigned to the yard, provided the remaining employees are qualified and capable to perform the required work in their department. For example, if there are 13 employees posted to the Rail department among the employees scheduled to work in a given week, and only 10 are required in the Rail department, the 3 junior Rail employees will be assigned to the yard.

4. If coincidentally with Item 3 above, there is a need for additional employees in

another department other than the yard, above and beyond those that are regularly posted into positions in that department, the Employer will assign qualified and capable yard employees (including the displaced employees who are assigned to the yard pursuant to 3. above) in order of seniority, from among those employees who have indicated their willingness to work in other departments by signing an availability list which will be posted every three (3) months. Once an employee has indicated their willingness to work in another department by signing the availability list, they must accept all such assignments whenever they are made. Where there are insufficient volunteers, qualified and capable employees shall be assigned to work in the other department for the following week in reverse order of bargaining unit seniority.

5. If during a work week there is a need to reduce the number of employees in a

department on a daily basis the following shall apply:

a) Employees in the affected department may be offered, in order of seniority, the opportunity to voluntarily book off, provided they are not required to

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perform work in another department or they are not required to perform work in their own department by virtue of possessing special skills or training.

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b) If insufficient employees accept voluntary book offs, the remaining employees who are to be displaced shall be assigned by the Employer to whatever work is available, provided that if the available work is at a higher rate of pay, it shall be offered by seniority to those employees who are qualified and capable to perform it. If no other work is available, employees shall be laid-off in accordance with the appropriate provisions of the Collective Agreement.

6. In all cases above employees will be entitled to overtime continuous to the shift in

both their own department (priority 1) and the department they are assigned to (priority 2).

7. If work becomes available in a department, employees who were displaced from

their departments must return to their departments in order of seniority. 8. If during a work week there is a need to increase the number of employees in a

specific department on a daily basis, and all posted employees scheduled to work that week are working in that department, qualified and capable employees will be canvassed, in order of seniority among employees already scheduled to work that week. Where insufficient employees volunteer, then the Employer shall assign qualified and capable employees to perform the work in reverse order of seniority. Employees volunteering to work in another department will only be entitled to overtime in the department they have moved to (priority 2). Employees assigned to another department will retain both priority 1 and priority 2 entitlements.

9. Where there is more than one shift working on a given week, shift preference shall

go to posted employees before other employees are canvassed. 10. The Employer and the Union will meet from time to time to review the

implementation of this Letter of Understanding. 11. The parties agree that this Letter of Understanding resolves the outstanding

grievances currently being arbitrated by Robert Diebold, and the Employer agrees to pay the monetary claims included in those grievances. The parties agree that the resolution of these grievances is without Prejudice or Precedent to any matter that may arise between the parties in the future.

DATED AT Vancouver, British Columbia, this day of , 2007. PARTY OF THE FIRST PART PARTY OF THE SECOND PART

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LETTER OF UNDERSTANDING No. 7

BETWEEN: FRASER WHARVES LTD.

13800 Steveston Highway Richmond, British Columbia;

AND: TEAMSTERS LOCAL UNION No. 213,

affiliated with the International Brotherhood of Teamsters, 490 East Broadway, Vancouver, British Columbia;

Re: Seven Day Work Week

The parties agree to meet during the final year of this Collective Agreement for the purpose of developing a framework for the introduction of a seven (7) day work week. These discussions shall take place prior to the commencement of collective bargaining for a renewal Collective Agreement. DATED AT Vancouver, British Columbia, this day of , 2007. PARTY OF THE FIRST PART PARTY OF THE SECOND PART