COLLECTIVE AGREEMENT

BETWEEN:

Pactiv Canada Inc.

(hereinafter referred to as "the Employer" or ''the Company")

OF THE FIRST PART;

-and-

UNIFOR-CANADA

(hereinafter referred to as "the Union")

OF THE SECOND PART;

Date of Ratification: August 28,2016

Expiry Date: June 30, 2019

ARTICLE

ONE-PURPOSE

TWO-SCOPE AND RECOGNITION

THREE-NO DISCRIMINATION

FOUR-MANAGEMENT RIGHTS

APPENDIX

FIVE-UNION SECURITY AND DUES DEDUCTION

SIX-STRIKES AND LOCKOUTS

SEVEN-EMPLOYEE REPRESENTATION

EIGHT-GRIEVANCE PROCEDURE

NINE-ARBITRATION

TEN-SENIORITY

ELEVEN-JOB VACANCIES AND NEW JOBS

TWELVE-LAYOFF AND RECALL

THIRTEEN-TRANSFERS

FOURTEEN-HOURS OF WORK AND OVERTIME

FIFTEEN-LEAVES OF ABSENCE

SIXTEEN-PAID HOLIDAYS

SEVENTEEN-PAID VACATIONS

EIGHTEEN-HEALTH AND SAFETY

NINETEEN-BULLETIN BOARD

TWENTY -UNION/EMPLOYER MEETINGS

TWENTY -ONE-HEALTH AND WELFARE

TWENTY-TWO-GENERAL

TWENTY-THREE-DURATION AND TERMINATION

TWENTY -FOUR-WAGES

TWENTY -FIVE-SKILLED TRADES

APPENDIX A

LETTERS OF UNDERSTANDING

LIST OF ARBITRATORS

PAGE

I

3

4

4

5

6

9

9

10

12

15

16

18

20

21

22

27

27

27

29

33

33

34

36

38

41

1. ARTICLE ONE- PURPOSE

1.1. The general purpose of this Agreement between the Company and the Union is to establish and maintain:

1.1.1. orderly collective bargaining relations;

1.1.2. a procedure for the prompt and equitable handling of grievances;

1.1.3. satisfactory working conditions, hours of work and wages, for all employees who are subject to the provisions of this Agreement.

2. ARTICLE TWO- SCOPE AND RECOGNITION

2.1. The Company recognizes the Union as the sole and exclusive bargaining agent of all employees of the Employer, in the City of London save and except supervisors, those above the rank of supervisor and sales, office and clerical staff.

2.2. Non-bargaining unit employees shall not perform work normally performed by employees in the bargaining unit, except in cases of emergencies, safety, experimental work or instruction. Supervisors may perform bargaining unit work to assist in production pursuant to the provisions of Article 14.5.

2.3. The word "employee" or "employees" whenever read in the Agreement shall mean any or all of the employees in the bargaining unit as defined above, except where the context otherwise provides.

2.4. The Employer agrees that it will not enter into any other agreement with employees either individually or collectively which will conflict with any of the provisions of this Agreement.

2.5. The Union agrees that, except as provided for in this Agreement, there will be no Union activity on the premises of the Company except by agreement with the Company.

3. ARTICLE THREE- NO DISCRIMINATION

3 .I. The Employer and the Union agree that no employee shall in any manner be discriminated against or harassed, coerced, restrained or influenced because of age, race, sex, religious affiliation, national origin, political affiliation, marital status, family status, disability, sexual orientation as are defined by the Human Rights Code of Ontario, membership in any labour organization, or by reason of an activity in any labour organization.

3.2. The Company and the Union recognize that sexual harassment is unlawful and in violation of the Human Rights Code, which defines it as a course of vexation comments or conduct or sexual advance or solicitation that is known or ought reasonably to be known to be unwelcome. The Company and the Union are committed to ensuring that no employee of the Company is sexually harassed by any person in the course of their work. Sexual harassment complaints will be handled with all possible confidentiality.

I

3.3. Where the term "spouse" or "partner" is used in this Agreement or in any terms of reference used by any benefit provided for the Company, it shall also mean same-sex partner or partner including, but not limited to pension and benefits.

3.4. Accommodation Clause

3 .4.1. The Company agrees to work within all legislative requirements to accommodate employees who may become disabled as defined by the Ontario Human Right Code while an employee with the Company. When an employee with such disability requests accommodation the Company will work with a Union member assigned by the Plant Chairperson and the employee to engage in the interactive process to determine what accommodations might be made for the employee to perform the essential functions of the regular job under the following procedure:

3.4.1.1. The participants shall review the details of the employee's new level of capability in an effort to ascertain what duties the employee could possibly perform. The Company shall have the employee's full co­operation in having access to any and all pertinent medical information and/or any Functional Ability Information in order to determine the new level of capability. In the event that the Company requests the worker to get another opinion, the Company will use London Health Science Centre and Canadian Back Institute to determine medical status or limitations of employees. In such cases, the Company will pay the cost of evaluation and any time lost from work. The decision of this recognized independent evaluation assessment group shall be binding on the Company, Union, and employee.

3.4.2. Once agreement is reached by the Company and the Union through this process as to the employee's new level of capability the following steps will be followed:

3.4.2.1. The employee's present job will be reviewed by the group to determine if the employee can perform the essential functions of their position with or without accommodation.

3.4.2.2. Failing step A the group shall review potential combination of duties in an effort to create a meaningful alternate job for review by the HR Manager and the Plant Chairperson

3.4.2.3. Failing step 2 a review of all jobs in the plant occupied by employees junior to the employee with the new level of capability, will be conducted by the Company and Union representative in this process with recommendations for possible placement made to the HR Manager and the Plant Chairperson for consideration.

3.4.2.4. Failing step 3 the employee with the new level of capability will continue on the income protection plans they qualify for.

2

3.4.2.5. If a job vacancy occurs that the disabled employee can perform they will be placed on such job without necessity of a job posting.

3.4.3. If the Union and Company mutually agree that a modified job classification be available as noted above the job posting procedure shall be set aside to accommodate the disabled employees. Failing that if the Union and Company mutually agree that the disabled employee can perform in a job as noted in step 3 above the most junior employee in the plant in that job [provided they are junior to the disabled employee] shall be laid off in accordance with Article 12.

3.4.4. The Company will review all the circumstances with the Union Committee before exercising this provision. All exceptions to the seniority provisions of the collective agreement must be mutually agreed to by the parties.

3.4.5. An employee placed on a job because of a disability or handicap shall have that disability reviewed at least semi-annually.

4. ARTICLE FOUR- MANAGEMENT RIGHTS

4.1. Except, and to the extent specifically modified by this Agreement, all rights and prerogatives of management are retained by the Company and remain exclusively and without limitation within the rights of the Company and its management. There shall be no attempt by either party or an Arbitrator or a Board of Arbitration to read into the provisions of this Agreement a principle or authority whereby the process of collective bargaining has in any way usurped the rights of management. Without limiting the generality of the foregoing, the Company's exclusive rights, power and authority shall include but not be confined to:

4.1.1. The right: to plan direct, control and alter all operations to designate, establish, revise or discontinue departments, subject to the express terms of the Collective Bargaining Agreement.

4.1.2. Make, enforce and alter, from time to time, reasonable rules and regulations to be observed by the employees; hire, transfer, promote, demote, classify, assign duties, layoff, recall, discharge, suspend or otherwise discipline employees, provided that a claim that employees who have completed their probationary period has been discharged or disciplined without just cause or has been dealt with contrary to the provisions of this Agreement may be the subject of a grievance and dealt with as hereinafter provided.

4.1.3. The right: to determine the extent of the operations and their commencement, expansion, curtailment or discontinuance; the direction of the working forces, the services to be provided, the schedule of hours or production; the number of shifts; the requirement of medical examinations at the Company's expense by a physician designated or approved by it in relation to WSIB injuries and/or short term and long term sickness or illness; the use of improved methods; whether there shall be overtime; the number of employees needed by the Company at any time and how many shall work on any job; the number of hours to be worked, starting and quitting time periods; and generally, the right to manage the enterprise and its business without interference are solely and exclusively the right of the Company, subject to the express terms of the Collective Bargaining Agreement.

3

4.2. Where the rights, power and authority itemized above are modified or limited by the terms and provisions of this Agreement, they shall only be modified or limited to the extent specifically provided for therein. The Employer agrees that it shall not exercise its rights in a manner inconsistent with the express provisions of this Agreement.

4.3. Medical certificates or examinations required by the Employer or by legislation (except the Workplace Safety and Insurance Act) shall be paid for by the Employer.

4.4. The Company will supply the Union with a list of persons acting in a supervisory capacity and will adjust the list when changes occur.

5. ARTICLE FIVE- UNION SECURITY AND DUES DEDUCTION

5 .I. During the term of the Agreement, the Employer agrees to deduct regular monthly union dues or a sum equivalent to the regular monthly union dues as assessed by the Union on its members in accordance with the Constitution and/or by-laws of the National Union, from wages of each employee on each pay day of each calendar month and to remit the amount so deducted to the Financial Secretary of Local 27 no later than the 15th day of the following month.

5.2. The Union shall indemnify and save the Employer harmless with respect to all Union dues so deducted and remitted.

5.3. The Employer shall provide the Union with a list of names, addresses and telephone numbers of those employees for and on behalf of whom deductions and payments to the Union have been made.

5.4. The Employer agrees to record the total dues deduction paid by each employee for the previous calendar year on their T4 Income Tax Form.

5.5. The Company will notify the Union when it has scheduled and will invite the Union to participate in an orientation for new employees. One of the Union committee persons will attend the orientation without loss of pay and present information regarding the role of the Union and the expectations the Union has of the employee for up to fifteen (15) minutes.

5.6. New employees shall have deductions or Union dues made from the first pay of the month following completion of three (3) weeks employment.

5. 7. All employees who are members of the Union shall remain members in good standing. All new employees will be required to complete and sign an Application for Membership and Authorization for Check off of dues and Initiation Fee.

6. ARTICLE SIX- STRIKES AND LOCKOUTS

6.1. The parties have entered into this Collective Agreement in mutual good faith, the Company agrees there will be no lockout and the Union agrees there will be no strike, picketing, slowdown or other concerted activity either complete or partial, which could interfere with or restrict production during the term of this Agreement.

4

7. ARTICLE SEVEN -EMPLOYEE REPRESENTATION

7. I. Union Committee Members

7.1.1. The Employer acknowledges the right of the Union to appoint or otherwise select a Union Committee, which shall be composed of not more than five (5) Committee persons, one (1) of whom will be Chairperson, and one (1) will be from Skill Trades, at least one (I) from Cup Production, at least one (I) from Printing.

Each member of this committee shall have at least one (1) year of seniority with the Employer and shall be regular employees of the Employer during their time of office. The Employer will recognize and bargain with the said Committee on any matter properly arising out of this Agreement, including negotiations for the renewal of the Collective Agreement, and the said Committee will co-operate with the Employer in the administration of this Agreement.

7.1.2. The Employer agrees that it will recognize and bargain with up to four (4) alternate Committee persons on those occasions where the regular Committee persons of the Union Committee are unavailable, absent or unable to deal with grievances or other matters properly arising out of the Agreement. However, it is understood that the Employer will only be required to deal with one (1) Committee person with respect to any grievance or complaint.

7. I .3. The Union Committee Chairperson will be assigned to work day shift Monday through Friday within their regular job classification or other work for which they are qualified. The Union Chairperson will be provided with two hours each day while on the premises for the sole purpose of attending grievance meetings, doing applicable paperwork for the Union, preparing Union notices, maintaining Union postings, discussing matters with the Human Resources Manager or their designee, and meeting with employees not at work regarding Union business in the Union's in-plant office (these meetings can address problems relating to unemployment insurance, workers' compensation, employee benefit programs, alcohol and/or drug abuse, grievance investigation, or safety.) The Human Resources Manager and the Chairperson may agree that the Chairperson may perform tasks other than those listed above. The number of hours will become four ( 4) hours if the number of bargaining unit employees expands to more than 200. These hours will be eliminated if the number of bargaining unit employees decreases to less than I 00.

7 .2. It is understood that the Committee persons and alternative Committee persons will have to do the work assigned to them by the Company. If it is necessary that they investigate a grievance during working hours, they will not leave their work before obtaining the permission of the Supervisor in charge. The Committee person and the Supervisor will work together to identify an appropriate time prior to the end of the shift to be released to conduct the investigation. Oti days on which staffing shortages make it difficult to conduct the investigation, the Committee person will be given the time during the earlier stages of the following scheduled work day. When they return to their regular work, they will report

5

themselves to the Supervisor. If these conditions are met, the Company agrees that they will not Jose pay in such circumstances.

7.3. At any further negotiations for the renewal of this Agreement, the bargaining unit will be represented by the Union Committee (4) and the Union's representative.

7.4. The Company agrees to provide a filing cabinet that Jocks for the exclusive use of the Union Committee. The Company will endeavour to provide a private meeting space for Committee persons to meet with employees immediately after the imposition of disciplinary action.

7.5. The Union will, within fifteen (15) working days after the date of signing of this Agreement, notify the Company, in writing of the names of the Union Committee and alternate Committee persons and will keep such list up to date in writing at all times. No Committee person or alternative Committee person will be recognized by the Company unless the Union has properly notified the Company.

7.6. A representative of the Union identified to the Company in writing, wishing to discuss matters on Company premises with Company representatives or with employees will provide prior notice to the Company. When prior notice is not possible the National Representative shall, upon entering the premises, notify the appropriate Company official. If these conditions are met, permission to enter Company premises will not be unreasonably withheld.

7. 7. The Company will compensate Committee persons, alternate Committee persons and grievor(s) at their regular rate of pay for time spent in grievance meetings with the Company (or a Grievance Settlement Officer) or in processing grievances of employees. This does not apply to time spent on such matters outside regular working hours.

7.8. Employees on the Union Negotiating. Committee shall not Jose pay for regularly scheduled working hours missed due to attendance at negotiating meetings with Company representatives for the renewal of this Agreement. It is understood that the alternate Committee persons are not members of the Negotiating Committee unless they are replacing a committee person.

8. ARTICLE EIGHT- GRIEVANCE PROCEDURE

8.1. The parties to this Agreement are agreed that it is of the utmost importance to adjust complaints and grievances as quickly as possible. Accordingly, no grievance shall be arbitrable where the circumstances giving rise to it occurred or originated more than thirty (30) calendar days before the filing of the grievance.

8.2. It is generally understood that employees have no complaint or grievance until they, either directly or through the Union has first given their immediate supervisor an opportunity to adjust the complaint.

8.3. If, after registering the complaint with the supervisor and such complaint is not settled within three (3) regular working days or within any longer period which may have been

6

agreed to by the parties, then the following Steps of the Grievance Procedure may be invoked:

8.3.1. Step I: The grievance shall be submitted in writing to the Human Resources Manager or designate within five (5) working days of the Supervisor's response. The Human Resources Manager or designate shall hold a meeting with the employee and Committee person within a further five (5) working days and shall communicate this position to the employee in writing within three (3) working days of such meeting.

8.3.2. Step 2: If the matter is not resolved, then within five (5) working days of the Human Resources Manager's or designee's reply, the Union Chairperson will request a meeting with the Company's management. In such case the meeting shall be held between the Company Representative(s), the appropriate Union Committee member(s), and the grievor as soon as practicably possible, but not later than ten (10) working days after the Company's answer at Step One. If the matter is not disposed of at such meeting, the Company will provide a written answer to the grievance within five (5) working days of the meeting.

8.3.3. Step 3: If the matter is not resolved at Step 2, the Union may advance the grievance to this third step within five (5) calendar days that will include a discussion between the National Union Representative I Local Officer and designated members of Company management within thirty (30) calendar days. The Chairperson and the committee person involved with the grievance will be allowed one (!) hour preparation time with the National Union Representative prior to the Step Three meeting and will be allowed one-half hour (1 /2) following the meeting to meet with the Representative. If the matter is not disposed of at such meeting, the Company will provide a written answer to the grievance within five (5) working days of the meeting.

8.3.4. Step 4: If the Union wishes to proceed to arbitration, the Union shall, within ten (10) working days of the date of the Company's response, but not thereafter, deliver to the Company a notice in writing stating that it wishes to take the matter to arbitration.

8.4. Types of Grievances

8.4.1. Policy Grievance - A Union Policy grievance or a Company grievance may be submitted to the Company or the Union, as the case may be, within five (5) working days of the circumstances giving rise to the grievance. A meeting between the Company and the Union shall be held within five (5) working days of the presentation of the written grievance. If the matter is not disposed of at such meeting, the grievance may be submitted to arbitration within ten (I 0) working days of the date of the Step 3 response and Article 9 (Arbitration) shall apply. Time limits may be extended by mutual agreement in writing as provided in Article 8.6. It is expressly understood that the provisions of this paragraph may not be used by the Union to institute a grievance directly affecting an employee or

7

employees which such employee or employees could themselves institute and the provisions of Article 8.3. hereof shall not thereby by bypassed.

8.4.2. Group Grievance - Where two or more employees have a grievance of an identical nature, the Union may initiate such grievances as a group grievance at Step 2 of the Grievance Procedure, provided such group grievance is presented in writing within five (5) working days of the incident giving rise to the grievance. Only those employees who are named in the grievance shall be included in the group grievance.

8.5. All discipline will be removed from an employee's file after one year providing there has been no discipline for similar occurrences during the one year period.

8.6. Disciplinary Grievance

8.6.1. A claim by any employee, other than a probationary employee, that they have been unjustly discharged shall be treated as a grievance if a written statement of such grievance is lodged with the Plant Manager within five (5) working days after the employee ceases to work for the Company.

8.6.2. Such special grievance may be settled by:

8.6.2.1. confirming the Management's action to discharge the employee, or

8.6.2.2. reinstating the employee with seniority and compensation for lost wages and benefits, or

8.6.2.3. any other arrangement, which in the opinion of the conferring parties, or the Arbitrator, is just and equitable.

8.6.3. A Union representative will be present during any disciplinary action resulting in verbal/ written warning, suspension or discharge or in discussions that could lead to disciplinary action including coaching and notes to file; however, employees may decline representation for coaching and note-to-file discussions.

8.6.4. In the event an employee is disciplined written warning or higher the employer shall provide written reasons for the discipline to the employee and the Union not later than eight (8) working continental days of the action being taken. The action of suspension or dismissal shall take place within eight (8) working continental days of the date the employer first became aware of, or reasonably should have become aware of the occurrence of the act giving rise to the additional investigation. Timelines can be extended by both parties, mutually agreeing to do so in writing.

8.6.5. Should an employee be discharged in a meeting at the plant, the Company shall give the discharged employee an opportunity, before leaving the plant, to meet a Committee person for a reasonable period of time in a private area unless the employee's conduct is such that it warrants immediate removal from Company premises.

8

8.7. No grievance may be submitted concerning the termination of employment, lay-off or disciplining of a probationary employee, except for a grievance alleging a violation of the Human Rights Code.

8.8. It is agreed that all time limits in this Article are mandatory and that only extensions in writing of time limits will be by the Union and the Company themselves, notwithstanding the provisions of the Labour Relations Act.

8.9. For purposes of Article 8, the words "working days" shall not include Saturdays, Sundays or paid holidays.

8.1 0. Copies of written disciplinary action will be provided to the employee and the Chairperson.

9. ARTICLE NINE- ARBITRATION

9.1. Any dispute or grievance concerning the interpretation, application, or alleged violation of this Agreement, which has been properly carried through all the steps of the grievance procedure outlined in this Agreement, and which has not been settled, will be referred to a single Arbitrator. The parties mutually agree to develop a roster of three (3) Arbitrators. Grievances will be referred for hearing to one of the Arbitrators on the roster, in rotation.

9.2. If a grievance under Article 8 is not settled it may be referred to arbitration as herein provided, within ten (I 0) working days from the date of the Step 3 meeting under Article 8.

9.3. The decision of the Arbitrator shall be final and binding upon the parties hereto and any employee affected by it.

9 .4. The Arbitrator shall not have any power to alter or change any of the provisions of this Agreement or to substitute any new provisions for any existing provisions nor to give any decision inconsistent with the terms and provisions ofthis Agreement.

9.5. Each of the parties to this Agreement will jointly bear the expenses of the Arbitrator.

9.6. The Arbitrator shall hear and determine only one grievance at a time unless the parties expressly agree otherwise.

10. ARTICLE TEN- SENIORITY

1 0.1. An employee will be considered as a probationary employee for the first 540 hours worked in a 6 month period and will have no seniority rights during that period. Upon mutual agreement between the Company and the Union, the Company may extend the probationary period by one-hundred eighty (180) hours of work. The termination of an employee during the probationary period shall not be made the subject of a grievance under the grievance procedure. Such termination shall be made at the sole discretion of the Company. After completion of the probationary period the employee's seniority shall date from the most recent date of hire.

9

I 0.2. A seniority list will be posted by the Company for a period of fourteen (14) calendar days within one (1) month after the signing of this Agreement. After such posting, the list shall become final as to the employees' names and dates designated on it, except as to any employee who has disputed the accuracy of their seniority date while the list is posted, in which case it will be subject to an adjustment under the Grievance Procedure if established to be inaccurate. The seniority list will be brought up to date every month and a copy will be given to the Chairperson of the Local Union Section, to the Union Office and a copy posted on the bulletin board. Seniority shall be defined as continuous service with the Company since the last date of hire by the Company.

10.3. An employees' seniority will be lost and the employees shall be deemed terminated if they:

10.3.1. quits the employ of the Company for any reason;

10.3.2. is discharged and not reinstated through the Grievance Procedure or Arbitration;

10.3.3. is laid off for a continuous period exceeding the length of their seniority at the time of layoff or a period exceeding eighteen (18) months, or whichever comes first;

10.3.4. fails to return to work within seven (7) working days of being notified of recall. An employee shall be deemed to be notified of recall on the third (3rd) working day following the posting of a registered letter to that effect addressed to the employee's most recent address on the Company's files.

10.3.5. NOTE: It shall be the responsibility of the employees to keep the Company informed of their current address and telephone number.

I 0.3.6. fails to return to work on the first scheduled day following the expiration of an authorized leave of absence, unless they have a satisfactory reason; or utilizes a leave of absence for purposes other than those for which the leave of absence was granted;

10.3.7. is absent for three (3) consecutive working days without notifying the Company or is absent for more than three (3) days without leave;

10.3.8. retires.

11. ARTICLE ELEVEN- JOB VACANCIES AND NEW JOBS

11.1. When a new job classification is created or any regular vacancy occurs, the Company will post a notice of the vacancy as soon as possible but no later than thirty (30) calendar days for a period of seven (7) calendar days on the Union Bulletin Board. The notice will specify the nature of the job, the shift, qualifications required and the rate of pay. When a vacancy occurs in an existing job classification, employees who hold positions within that classification will have the opportunity to change shifts or crews through the established Shift/Crew Transfer Procedure before the opening is posted. After the execution of the Shift/Crew Transfer Procedure is completed, the company will post the final opening for

10

the classification on the Union Bulletin Board. The Company will post substitute I relief positions for classifications in which there are limited number of incumbents as deemed necessary. Employees who wish to be considered for the position so posted shall signify their desire by making a written application in accordance with the provisions of the posting. The name of the successful applicants will be posted immediately after they are advised and shall remain posted for a period of three (3) calendar days.

11.2. Employees shall have the right to bid during such seven (7) calendar-day period on any vacancy or new jobs created. Such vacancy or new job created shall be filled from applications received on the basis of seniority provided the senior employee possesses the skills and abilities stated in the posting notice and are willing and able to perform the work within a period often (10) working days. The length of training shall not exceed ten (I 0) working days unless deemed necessary and agreed to by both the union and the employer.

11.3. In the event the successful applicants I transferees within thirty (30) working days of commencing work in the posted I transferred position proves unsatisfactory or wishes to return to their previous classification I shift I crew, they shall be returned to their former positions I shift I crew without loss of seniority.

11.4. If no active employees bid on or have the skills and abilities needed to fill such vacancy or new job created, the Company will provide employees on layoff with recall rights an opportunity to fill the vacancy provided they possess the skills and abilities stated on the job bid. The Company will hire new employees in the event that neither active nor laid off employees possess the skills and abilities to fill the posted vacancy. Copies of all job postings shall be submitted to the Chairperson of the Union Committee prior to the posting.

11.5. In the event that a new classification is created, the employer agrees that the Union Representative, Union Committee and management meet to discuss the job content and wage rate for such classification prior to the job being implemented. If the details cannot be resolved the grievance and arbitration procedures can be followed.

11.6. The Employer shall endeavour to place the employee in their new position within thirty (30) days. In the event the successful applicant cannot be placed, they will be paid the appropriate new base rate at the thirty (30) day mark.

11.7. Any employee who has successfully bid under this Article shall not be entitled to bid on a posted job before six (6) months from the date of a successful bid, except with the Employer's permission.

12. ARTICLE TWELVE- LAYOFF AND RECALL

12.1. If there is a reduction of work force, position reduction within a job classification, or an elimination of a job classification that affects employees in a department ladder or bid jobs, employees will use plant seniority to stay in their classification, fill vacancies created by junior employees who may be subject to layoff, or to displace the most junior non-laid off employee within another job classification.

11

12.1.1. Job classifications will be categorized as technical and non-technical.

Technical Classifications:

Maintenance, Millwright, Electrician, Printer, Printer Assistant, OPMR, Machine Operator, Process Operator, Slitter Operator, QA, Tool Crib Attendant

Successful bidders in technical classifications must pass a skills assessment test where applicable.

Non- Technical Classifications:

Printer Helper, Packer, Production Helper, Production Material Handler, Material Handler (warehouse), Utility

Non- Technical classifications will not be required to take a skills assessment test.

12.1.1.1. Employees who hold positions within technical job classifications may displace employees in technical and non-technical job classifications; however, they cannot bump to higher job classification. Employees with less than six (6) months service in the affected job classification will be moved out before employees with more than six ( 6) months service if they are not meeting production requirements.

12.1.1.2. Employees who hold positions within non-technical job classifications may only displace employees in non-technical job classifications regardless of pay rate. Employees in non-technical classifications may bump into a technical job classification if they previously held that job classification within the last twenty-four (24) months.

12.1.2. With respect to department ladder jobs, employees will move down the progression ladder based on plant seniority, leaving the least senior employee on the progression ladder displaced from a job.

12.1.3. With respect to bid jobs, an employee displaced from a bid job may displace the most junior employee within another job classification subject to the following conditions:

12.1.3.1. Such employee with the greater plant seniority must have the physical capacity to do the work required by the job classification held by the junior employee.

12.1.3.2. Such employee must be capable of fully performing the work and meeting the production requirements of the job held by the junior employee following a training period often (10) days.

12

12.1.4. The employees affected by staffing reductions may displace the most junior employees within another job classification on the day or night shift of their preference as defined in 12.1.1 provided that they have more plant seniority than the junior person and they can qualify under provisions 12.1.1.1 and 12.1.1.2.

12.1.5. The employees displaced in 12.1.4 above may bump into another classification provided they are qualified to perform the job and can meet production requirements without a training period or to any non-technical job classification in which the Company will provide necessary training. Employees who choose to bump into a job classification for which they are qualified will be provided a trial period under normal supervision to meet the production requirements. If they are not successful at meeting the requirements, they will be placed in a position in the lowest job classification or fill other vacancies.

If a position requires that an existing full-time Pactiv employee become forklift certified the employee will be required to take and pass a written Forklift Certification Test and Forklift Driving Test.

In the event the employee fails the written Forklift Certification Test the employer will attempt to detect any barriers that might be precluding the employee from passing the test and will offer the employee a second opportunity to take and pass the test.

After passing the written Forklift Certification Test the employee will be required to pass a Forklift Driving Test. If the employee finds that they are unable to pass a Forklift Driving Test after being trained the employer agrees to provide the employee with an additional twelve (12) hours of forklift training.

12.1.6. Employees who displace other employees in 12.1.4 and fail to qualify for the position following ten (10) days of training will have the opportunity to bump into any non-technical job classification. Employees who were displaced by such employees will return to the position from which they were displaced.

12.1. 7. Employees who are displaced from their position as a result of a reduction in force, position reduction, or job classification elimination shall have the right to return to their position when the number of positions in their former classification expands or the job classification is re-established. If employees are displaced from line-of-progression positions they will return to positions in the line-of­progression based on plant seniority. If employees are displaced from a bid job they will have a one-time right to return to that position if they so choose. Such right to return to the position exists provided the employees were away from the position for no longer than twenty-four (24) months and have not bid into another job.

12.2. In the event of a layoff of more than seven (7) consecutive working days, the Company agrees to advise seniority employees affected at least five (5) working days prior to the start of such layoff.

13

12.3. If the planned introduction or implementation of technological change, change in mechanization, or change in operating methods results in the layoff of the lesser of fifteen percent (15%) or twenty-five (25) employees from the plant-wide bargaining unit population, the company shall give the union a minimum of sixty ( 60) days written notice of such change prior to the impact of the project on employees. The company will meet with the union to seek ways and means to minimize the effects on employees, which might result from such changes. This provision does not include seasonality fluctuations or loss of sales volume. The written notice shall state:

12.3.1. The nature of the technological change or reorganization, or change in method of operations

12.3.2. The date on which the company proposes to effect the technological change or reorganization or change in method of operations

12.3 .3. The approximate number and classifications of employees to be affected by the technological change or reorganization

12.3.4. The affect that the technological change or reorganization is likely to have on the terms, conditions and security of employment of the employees affected

12.3.5. The number of jobs or classifications to be discontinued and the number of new jobs and job classifications to be created by the proposed technological change or reorganization or change in method of operations

12.3.6. All employee(s) whose jobs will be affected due to changes outlined above will be given advanced written notice of sixty (60) days or as required by Employment Standards Act depending upon employees' seniority, followed by a personal interview to discuss their options.

12.4. In the event of a layoff, employees shall be laid off in reverse order of seniority in their classification subject to Article 10.3.

12.5. No new employee shall be hired until laid off seniority employees, who are qualified per Article 10.3 have been offered recall.

12.6. As applied to individual employees, the Company may layoff an employee up to a total of five ( 5) working days per calendar year without regard to the provisions of Article I 0 for those situations/events which are beyond the Company's control (e.g. Emergencies, part/product shortages, machine breakdown).

12.7. Should the Company eliminate existing jobs with layoffs resulting, those employees affected shall receive notice of layoff pursuant to the Employment Standards Act, Ontario. The Union shall be notified in advance of such layoffs.

12.8. Grievances concerning layoffs and recalls shall be initiated at Step One of the Grievance Procedure.

14

12.9. The Union Plant Committee will be retained in the employ of the Company during their respective terms of office, notwithstanding their position on the seniority list, provided that they possess the skill, ability and qualifications to perform the available work in accordance with Company production requirements.

13. ARTICLE THIRTEEN- TRANSFERS

13.1. If an employee achieves a promotion to a higher rated classification through the job posting provisions, the employee will be paid as per the wage grid based on the employee's total seniority provided that the employee is able to perform the work for the position in accordance with Company production requirements, within the periods of time specified as follows for each job classification: 6 months - Printer; Maintenance Mechanic; Process Operator; 30 days - all other job classifications. Failing this, the employee will be returned to their former position and all other employees so affected by such move will also return to their former positions.

13 .2. Employees temporarily transferred by the Company to a higher rated bargaining unit job for more than two (2) hours shall receive the higher rate for the entire shift. Higher rate shall mean the rate on the grid at the first step which provides an increase over their current rate. Time spent in such transfer will not be used to deem employees more qualified than employees with more seniority for future openings in the job classification to which employees are temporarily transferred.

13.3. If the rate of pay for the job to which employees are temporarily transferred is less than the employee's regular rate of pay for the job from which the employees have been transferred the employees shall receive their regular rate of pay during such temporary transfer.

13.4. This Article does not apply to job changes necessitated by layoffs in the plant.

13.5. Employees promoted outside of the bargaining unit, if transferred back, will be credited with seniority acquired up to the date of transfer from the unit. The transfer period may be a minimum of two (2) weeks to a maximum of three (3) months. The transfer period may be extended only if there is a mutual agreement between the Company and the union. Seniority shall not be exercised until a period of three (3) months has elapsed from the date of the transfer back to the unit. Employee's returning to the bargaining unit after three (3) months will be hired as new employees, unless there was a mutual agreement between the Company and the union to extend the period to a maximum of six (6) months, at which time the employee would lose their seniority.

14. ARTICLE FOURTEEN- HOURS OF WORK AND OVERTIME

14.1. The regular work week for twelve (12) hour employees shall consist of a twenty four (24) hour per day, seven (7) day a week operation with twelve (12) hour continental shift schedule. The regular work week for eight (8) hour employees shall be composed of forty (40) hours on the basis of five (5) eight (8) hour shifts.

15

I 4.2. The Employer does not guarantee to provide work for an employee for regularly assigned hours or for any other hours.

14.3. A rest period of fifteen (15) minutes shall be provided during the first half of each regularly scheduled eight (8) hour shift and another fifteen (I 5) minutes shall be provided during the second half of each regularly scheduled shift for eight (8) hour shifts. An additional thirty (30) minute unpaid break will be provided to employees working an eight (8) hour shift.

For twelve (12) hour shifts, two rest periods of ten (I 0) minutes shall be provided during the first half and the second half of each regularly scheduled shift. An additional twenty (20) minute paid break will be provided to employees working a twelve (12) hour shift. The Company will ensure that employees receive their breaks after working no more than two and one-half (2 \!,) hours.

14.4. For twelve (12) hour shift employees, time and one-half an employee's straight time hourly rate shall be paid for all hours worked in excess of forty ( 40) hours in a week when the employee is scheduled to work forty-eight hours in that week and for all hours worked in excess of thirty-six (36) hours per week when the employee is scheduled to work thirty-six (36) hours in that week provided, in both instances, that the employee works all scheduled hours for the week. An employee will be paid overtime when coming in to work on a non-scheduled work day provided the employee meets all of the requirements noted herein. For eight (8) hour shift employees, time and one-half an employee's straight time hourly rate shall be paid for all hours worked in excess of forty ( 40) hours in a week.

14.5. When overtime work is required the following procedure will be used:

I 4.5. I. A voluntary overtime signup list (the "List") will be established for each department (Operations, Printing, Maintenance, Quality, and Shipping) which will allow employees to designate their seniority date, shifts for which they are available for overtime work, current classification, and other positions for which they are interested in working overtime and have the skills, ability, experience and qualifications to perform overtime work in accordance with Company production requirements ("the necessary qualifications").

14.5 .2. Each week, the Company will publish a seven-day work schedule (Monday through Sunday) for each department that will show the shifts and classifications in which employees will work for that week. The schedule will include overtime assignments as well as regular assignments.

14.5.3. When overtime work becomes available, employees will be scheduled from the List (in (a) above) based on seniority according to the following priorities:

14.5.3.1. Employees in the same classification

14.5.3.2. Employees in other job classifications

16

14.5.4. Should the List become exhausted, employees will work overtime as required. In scheduling and assigning employees to work overtime, employees in the classifications where overtime work is required shall be assigned to work the overtime work on the basis of reverse seniority. Mandatory overtime under this section will not be assigned for the future week after the seven day work schedule is posted.

14.5.5. No twelve (12) hour employee will be required to work mandatory overtime, if the total number of hours worked exceeds forty-eight ( 48) hours in one week. 14.5 .4 will apply provided that no employee shall be required to work more than three (3) consecutive days more than once per calendar quarter. In departments in which there are less than thirteen (13) total employees, 14.5.4 will be implemented on a rotational basis. Employees who hold relief/temporary positions in such departments will be included in the rotation.

14.5.6. If the Company is still unable to schedule and assign employees with the necessary qualifications to work the required overtime, the Company shall have the right to use non-bargaining unit persons.

14.5.7. Overtime assignments for 12-hour shifts in the cup forming, printing, maintenance, shipping, and QA departments will be made for either full shifts or half shifts. Employees who sign up for half shifts will indicate their preference to work the front or back part of the shift. In assigning half shifts, the senior employees will receive their preference and the junior employees will be assigned to the half shifts that rem am.

14.5.8. Employees who fail to report for work on days on which they are schedule to work overtime will forfeit their opportunity to be assigned to voluntary overtime the next time it is available. This forfeiture will not apply to absences that do not count as occurrences under the attendance policy.

14.5.9. No employee may switch shifts with another employee until after the schedule is posted and receive approval from the supervisor.

14.5.10. Mandatory assignment of overtime will be equalized for all employees within their shifts and job classification by receiving overtime assignment on a rotational basis starting with the least senior employee up through the most senior.

14.6. When employees are called back to work after the conclusion of their regularly scheduled shift and after they have left the Company premises, they shall receive a minimum of four ( 4) hours work or four ( 4) pay at their regular straight time rate. This provision shall not apply when employees are called in to work immediately prior to the start of their scheduled shift.

14.7. Employees reporting for work at the commencement of their shift, unless notified in advance not to do so, or .unless they are returning to work without notice after an absence, shall receive four (4) hours work or four (4) hours pay at their regular hourly rate. This provision shall not apply when there is a Jack of work due to a situation beyond the

17

control of the Company. An employee who reports shall take such work as is available in order to qualify for four (4) hours pay.

14.8. All employees who work a twelve (12) hour shift between 7:00p.m. and 7:00a.m. and all employees who work an eight (8) hour shift between II :00 p.m. and 7:00 a.m. shall receive a shift premium of $0.75 per hour. All employees who work an eight (8) hour shift between 3:00p.m. and 11:00 p.m. shall receive a shift premium of $0.60 per hour. Shift premium will not be paid for any hour in which an employee receives overtime premium rate unless the employee works between 7:00p.m. and 7:00 a.m. as overtime hours. Shift premium will not form part of the employee's regular hourly rate.

14.9. It is agreed that there shall be no pyramiding or duplication of overtime or premium pay rates under this Agreement. Where two (2) or more premium pay provisions are applicable, only the greater provision shall be paid.

14.1 0. The schedules of work are to be posted one (I) week in advance of the first day of the schedule. The work schedule may be changed after posting but the Company shall give forty-eight ( 48) hours' notice, where possible, to employees affected by changes.

15. ARTICLE FIFTEEN- LEAVES OF ABSENCE

15 .I. Personal Leave

15 .I. I. The Company may in its discretion, grant leave of absence of up to ( 6) weeks without pay to employees for personal reasons satisfactory to the Company provided that such leave does not interfere with the Company's operation and provided that any request for leave of absence is made in writing at least two (2) weeks prior to the start of such leave and the reason for leave of absence is stated.

15 .1.2. The Company will arrange for the continued coverage of medical insurance if the employee leaves sufficient funds with the Company to cover the complete cost (including the Company's portion) for the duration of any granted leave of absence.

15.2. Union Business Leave

15.2.1. Upon two (2) weeks prior notice, an employee of the Company elected to a full­time position in the Local Union or National Union, UNIFOR will be granted a leave of absence without pay or benefits for a maximum period of three (3) years.

15.2.2. The Company will grant a leave of absence with pay and benefits and without loss of seniority to attend UNIFOR Union Conventions or other official Union business outside the Plant. Such leaves shall be limited to one (I) employee per classification and shall be limited to a total of forty ( 40) working days for the bargaining unit per contract year. Such leave shall be granted provided that written request is made at least seven (7) days prior to the start of such leave. The Union agrees to discuss any such leaves of absence that would negatively impact on production and operations and in that regard agrees not to exercise its rights

18

under this clause unreasonably. The Company will bill the Union monthly for wages and benefits during such leaves for reimbursement by the Union.

15.3. Bereavement Leave

15.3.1. In the event of the death in an employee's immediate family, the Company shall grant a paid leave of absence for the purpose of allowing the employee to make funeral arrangements and attending to other matters related to the death as follows: five (5) paid working days for the death of a spouse, mother, father, child or step-child; up to four ( 4) successive days for the death of a grandchild, foster child, grandparent, sister, brother, father-in-law and mother-in-law, brother­in-law, sister-in-law, or step-parent. Pay for scheduled shifts missed shall be on the basis of the employee's regular straight time hourly rate. The above shall also apply to current common law spouses, as defined by Canadian law, and the family members of current common law spouses as outlined above.

15.3 .2. If the burial or memorial service does not occur during the allotted paid leave time detailed in 15.3 .1 an employee may utilize one (1) day of such leave to attend a burial or memorial service during the year that the death occurred.

15.3.3. It is also understood that bereavement leave cannot be combined with any other right or benefit providing payment for the same day.

15.3.4. If an employee is on vacation or on a statutory holiday, they may reschedule the time off at a later date if the time is interrupted due to bereavement and paid their bereavement leave.

15.4. Jury Duty and Crown Witness Pay

15.4.1. If employees are called for jury duty or subpoenaed as a witness to give evidence on behalf of the Crown, they shall receive a regular day's pay for each day they are absent from their scheduled work provided that they sign over to the Company any jury fee or witness money they have received from the Court.

I 5.4.2. If employees are excused from jury or witness duty for one (1) or more scheduled work days due to Court adjournment or other reasons, the employees must report for work on their regularly scheduled shift.

15.4.3. Payment under (a) above shall be limited to forty (40) working days in total for all bargaining unit members per calendar year.

15.5. Pregnancy and Parental Leave

15.5.1. Pregnancy and parental leave shall be granted in accordance with the provisions of the Employment Standards Act.

19

16. ARTICLE SIXTEEN-PAID HOLIDAYS

16.1. For purposes of this Agreement the following days will be recognized as holidays:

New Year's Day Easter Sunday Victoria Day Canada Day Civic Holiday December 31

Labour Day Thanksgiving December24 Christmas Day Boxing Day

Plus one (I) floating paid holiday to be taken at the sole discretion of the employee upon a minimum of twenty four (24) hours' notice to the Employer via the employee call-in line prior to the scheduled shift. However, a floating holiday cannot be taken by any employee from January I'' through March !51

\ unless approved by management.

16.2. Schedule-based holiday pay

16.2.1. For eight (8) hour shift employees, the Company will pay each active full time employee who has completed their probationary period, eight (8) hours pay at their regular hourly rate for each such holiday provided that the employee works their full scheduled shift immediately preceding and immediately following the holiday unless excused from doing so by the Company. In addition, an employee must have earned wages on at least twelve (12) days during the four (4) weeks immediately preceding the holiday.

16.2.2. All holiday hours shall be considered as hours worked for eight (8) hour statutory pay.

16.2.3. For twelve (12) hour shift employees, the Company will pay each active full time employee who has completed their probationary period twelve (12) hours pay at their regular rate for each such holiday provided that the employee works their full scheduled shift immediately preceding and immediately following the holiday unless excused from doing so by the Company. In addition, the employee must have earned wages on at least eight (8) twelve (12) hour shifts during the four (4) weeks immediately preceding the holiday.

16.2.4. All holiday hours shall be considered as hours worked for twelve (12) hour statutory pay.

16.3. Employees with seniority, who have been laid off in a reduction of workforce or have gone on authorized sick leave within 30 days of the holiday, will be eligible for holiday pay.

16.4. If employees perform work on a recognized holiday listed in 16.1, they shall be paid double (2x) time for all hours worked on such holiday, plus the holiday pay they qualify for as outlined in 16.2

20

16.5. In the event an additional Federal or Provincial holiday is proclaimed during the life of this Agreement, the parties agree to identify one of the non-statutory holidays listed in 15.1 that will be designated and observed as the additional Federal or Provincial holiday. The parties shall meet to determine which of the holidays shall be so designated.

17. ARTICLE SEVENTEEN- PAID VACATIONS

17 .1. An employee in the active employ of the Company shall be entitled to an annual paid vacation on the following basis:

Upon Anniversary date of their date of hire for years of service as defined below

Less than one(!) year as of July 1st

Twelve (12) months of service

Four (4) years of service

Ten (! 0) years of service

Fifteen (15) years of service

Twenty (20) years of service

Vacation Entitlement

In accordance with provisions of Employment Standards Act

Two (2) Weeks

Three (3) Weeks

Four (4) Weeks

Five (5) Weeks

Six (6) Weeks

When employees take their week of vacation they will receive the same pay as though they worked their regular work schedule for that week. Employees who work an eight (8) hour, five (5) days per week will receive forty ( 40) hours per week. Employees who work a twelve (12) hour per day schedule will receive either thirty-six (36) or forty-eight (48) hours depending on the number of hours they would have been scheduled during their week of vacation. Single day vacation will be paid at the employee's regular number of hours for that day.

17.2. For purposes of determining increased vacation entitlement, the appropriate date shall be date of hire.

17.3. For purposes of determining continuous service in Article 17.1. hereof, employees may miss seventy-five (75) total working days per year without affecting their vacation entitlement. After seventy-five (75) total working days of absence, their vacation entitlement and pay shall be reduced on a pro rata basis according to working days missed. For purposes of this clause, twenty-five (25) weeks of parental leave shall not be considered as time missed.

17.4. Employees who leaves the service of the Company shall be given the vacation pay to which they were entitled at the time they left the service of the Company.

17.5. Vacation time is not cumulative and must be taken by the conclusion of the vacation year. Unpaid vacation pay, if any, shall be paid out at the end of the vacation year. Employees who have more than two (2) weeks vacation may elect to sell back a full week(s) of vacation at any time throughout the year upon completion of appropriate paperwork.

21

17.6. Regardless of whether or not an annual vacation shutdown is scheduled, each employee shall provide the Company with a list of preferred weeks for vacation by March 15. Employees who want to schedule vacation from January 1st through February 15th must submit their request by December 1 ''. It is recognized that the final decision concerning vacation scheduling rests with the Company. The Company agrees to consider individual requests by seniority ]laving regard to production requirement. Employees who do not have their vacation request lists to the Company by February 15 will be last to be scheduled for vacation, which will be done on a first-come, first-served basis provided that the week is available for vacation and the employee provided at least one (1) month of advance written· notice. The Company agrees to consider individual requests for vacation taken outside of the shutdown period.

17.7. The Company reserves the right to schedule two (2) annual vacation shutdowns each calendar year. A vacation shutdown may occur during the week of March break and another shutdown may occur during the months of July and/or August. If the company elects not to schedule a vacation shutdown during the March break than the Company may schedule a two (2) week vacation shutdown during July and/or August. Vacation time shall be taken during such plant shut down. The employer agrees to provide notice of such plant shut down by February 28 of each year.

17.8. All vacation pay will be made through direct deposit with a separate line item for vacation pay and regular pay. If requested two weeks prior to scheduled vacation, the Company will ensure that vacation pay will be provided to the employee prior to commencement of vacation.

18. ARTICLE EIGHTEEN- HEALTH AND SAFETY

18.1. The Company and the Union agree that they mutually desire to maintain high standards of safety and health in the workplace in order to prevent injury and illness. It is the Company's intention to continue to work throughout the duration of the agreement with the Joint Health and Safety Committee (JHSC) in revising, developing and implementing Health & Safety policies and practices that shall assist the Company and its workers in achieving a safe and healthy work environment. Safety shall be the joint responsibility of the Company, the Union and the employees. The Company will ensure that the current applicable standards are applied and will ensure that the JH&SC members are fully apprised of those standards.

18.1.1. Company Duties: The Company shall institute and maintain all precautions to provide every worker a safe, clean, and healthy workplace. The Company shall comply with all applicable health and safety legislation and regulations (i.e. R.SO. 1990).

18.1.2. Employee Duties: Each employee has a primary responsibility for their own safety and an obligation to know and observe safety rules and practices as a measure of protection for themselves and others as well as keep work areas clean as directed by their Supervisor. Employees shall report all unsafe conditions to their supervisor or any member of the JHSC. Employees shall perform and document workplace safety inspections applicable to their job classification.

22

Employees shall be required as a condition of continued employment, to properly wear and/or use protective devices, wearing apparel and other equipment which the Company and Committee shall deem necessary to protect employees from injury. Any and all changes shall be communicated in accordance with article 18.1(6).

18.1.3. Joint Health & Safety Committee:

18.1.3.1. The Joint Health and Safety Committee shall be composed of not less than four ( 4) Union members selected by the employees and an equal number of Management members.

18.1.3.2. Two co-chairpersons shall be elected by the respective members of Committee, one co-chair being a Union member, the other being a member of Management. The Union co-chair's regular work hours will include at least one-half of their time between 7 AM and 7 PM.

18.1.3.3. Without limiting the generality of the foregoing, the Committee shall:

18.1.3.3.1. Determine that inspections have been carried out at least once a month by the co-chairs or designates. These inspections shall be made of all places of employment focusing on workplace conditions and practices by using inspection checklists developed by the JSHC. Such inspections shall normally be made on the third Wednesday of every month unless rearranged by either co-chair.

18.1.3.3.2. Recommend measures required to attain compliance with appropriate government regulations and the correction of hazardous conditions.

18.1.3.3.3. Consider recommendations from the workforce with respect to health and safety matters and recommend implementation where warranted.

18.1.3.3.4. Hold regular meetings normally on the fourth Wednesday of every month unless rearranged by either co-chair for the review of:

18.1.3.3.4.1. reports of current accidents and occupational diseases, their causes and means of prevention;

18.1.3.3.4.2. remedial action taken or required by the reports of investigations or inspections;

18.1.3.3.4.3. any other matters pertaining to health and safety.

23

18.1.3.3.5. Record the minutes which shaH be signed by the co-chairs, distributed to the committee members and posted on the buHetin board normaHy within three (3) days of the meeting.

18.1.3.3.6. Have access to and promptly receive copies of aH reports, records, and documents in the Company's possession or obtainable by the Company, pertaining to health and safety.

18.1.3.3.7. Develop an annual safety action plan.

18.1.3.4. The Union members of the Health and Safety Committee shaH meet without the Company members for one hour prior to the committee meeting.

18.1.3.5. The Company shaH approve sufficient time for the co-chairs to perform their JSHC responsibilities as they are outlined in Article 18. 1.3.3 above and to coHaborate on safety-related projects.

18.1.4. Right to Refuse:

18. 1.4. I. The Company shaH ensure that aH employees are informed that they have the right to refuse work if any machine, equipment or tool that the worker is using or is told to use is likely to endanger themselves or another worker, the physical condition of the workplace or workstation is likely to endanger the worker, or any machine, equipment or tool that the worker is using, or the physical condition of the workplace, contravenes the Act or regulations and is likely to endanger themselves or another worker.

18. 1.4.2. When workers exercise their right to refuse, they shaH immediately notify the supervisor that the work is being refused and explain why. The supervisor must investigate the situation immediately, in the presence of the worker and a member of the JHSC or other designated Union representative. The worker shaH stand by at a safe place and participate fuHy in the investigation ofthe hazard. The refusing worker must remain in a safe place near the workstation until the investigation is completed.

18.1.4.3. The Company shaH ensure that no worker is asked or permitted to perform the work of the worker who refused unless the second worker is advised of the reasons for the work refusal in the presence of a Union member of the JHSC or union representative.

18. 1.4.4. If the Union JHSC committee member or either designated Union representative and the Supervisor cannot agree on a remedy to the work refusal, the Company co-chair shaH be caHed in if not already involved in the investigation, before a government inspector shaH be caHed in.

24

18.1.4.5. No employee shall be discharged, penalized, coerced, intimidated, or disciplined for refusing hazardous work except where the refusal was made in bad faith or continues after an MOL inspector finds that the work is not likely to endanger the worker.

18.1.5. Accident Investigations: Every injury or near miss which involved or would have involved a worker going to a doctor or hospital shall be investigated. The co­chairs or designates shall investigate.

18.1.6. Education and Training:

18.1.6.1. No employee shall be required or allowed to work on any job or operate any piece of equipment on their own until they have received proper education, training, and instruction. Such training shall include, but not be limited to safe work procedures specific to their job classification, general plant safety policies, Jock-out/tag-out procedures as it applies to them as either an authorized or affected employee in accordance with their job classification, and ergonomic and chemical hazard training where applicable. When such training occurs, either to update or instruct employees, a record of such training shall be provided to the JHSC at each monthly meeting.

18.1.6.2. Any new policies and safe operating procedures shall be reviewed with employees and posted for one (1) month after their design and introduction. Appropriate signage, diagrams, or other instructional or demonstrative material shall be posted in accordance with any new policies to ensure adequate knowledge and protection of all workers affected.

18.1.6.3. During the life of the agreement, all members of the JHSC shall attend health and safety courses or conferences identified as part of the Annual Safety Action Plan developed by the committee and approved by the management team. The Company shall pay the lost time and course fees. Upon agreement with the company, the education may be broken up and used for time off for education at an accredited facility for education related to health and safety. Upon proof of full attendance at the course the worker shall be reimbursed for expenses incurred related to course books, tuition, parking fees while attending the course.

18.1.6.4. Each year the Company shall provide health and safety training to all employees as part of the Annual Safety Action Plan. All members of the JHSC will participate in providing the training as deemed appropriate. The Company will maintain records of such training including the type of training and the hours spent in training and will share these records with the JHSC. Supervisors will have access to the training records so that they can ensure training opportunities are fully utilized when Jack ofregular work occurs.

25

18.1.7. Disclosure of Information: The Company shall make all Material Safety Data Sheets pertaining to all materials or substances used in the Company's operation available to the JSHC co-chairs.

18. 1.8. Right to Accomoanv Inspectors: The Union co-chairperson or designate shall be allowed to accompany government inspectors on an inspection tour and to speak with the inspector out of earshot of any other person.

18.1.9. National Day of Mourning: Each year on April 28th the Company shall allow all employees to observe one minute of silence to honour workers killed or injured on the job.

18.1.10. Protective Clothing and Equipment:

18.1.1 0.1. The Company shall provide all employees whose work requires them to wear protective devices with the necessary tools, equipment, and protective clothing chosen by the committee. These shall be maintained and replaced where necessary at the Company's expense. The protective clothing and safety equipment will remain the property of the Company. The Union will cooperate with the Company by insisting that employees make use of such equipment and clothing for protection.

18.1.10.2. The Company will provide safety equipment as recommended and approved by the JHSC including items in reference to ergonomics.

18.1.1 I. First Aid Attendants:

18.1.11.1. The Company will ensure that adequate number of employees, including members of the JHSC and recognized alternates, on each shift shall be certified as required in first aid and C.P.R.

18.1.1 1.2. The Company shall pay for the fees, textbooks, and lost time of such first aid training attendance, providing they successfully complete the course.

18.1.12. Return to Work & Injured Worker Provisions:

18.1.12.1. Employees who are injured during working hours and who are required to leave for treatment or are sent home as a result of such injury shall receive payment for the rest of the shift at their regular rate of pay.

18.1.12.2. Such employees shall be provided with transportation to their doctor's office or hospital and subsequently their home or back to work

18.1.12.3. The Company will use the Return to Work Program that was implemented April 2007. Any change to the program will be reviewed by the JHSC and mutually agreed to prior to implementing any change. The Company agrees to review the RTW program with the Co-Chairs

26

of the JHSC on an annual basis and obtain agreement with JHSC and the HR Manager prior to implementing any change. Any change will be communicated to all plant employees.

18.1.12.4. It is understood that the above provision will comply with the Ontario Human Rights Code and will include permanent disabilities.

18.2. The Company agrees to reimburse an employee a maximum of one hundred sixty ($160.00) dollars annually towards the purchase of approved safety shoes on a replacement basis. Should an employee use less than the $160 annual allotment toward the purchase of safety shoes, employee may use the unused amount toward the purchase of insoles for employee's safety shoes. Employee shall obtain prior approval from the Company for reimbursement and once replacement safety boots and/or insoles have been purchased shall represent a proper receipt for reimbursement. Newly hired employees may submit a receipt for reimbursement of safety shoes and/or insoles after successfully completing their probationary period.

19. ARTICLE NINETEEN- BULLETIN BOARD

19 .1. The Company will provide two glass enclosed bulletin boards in a satisfactory location in the workplace for the convenience of the Union in posting notices of union activities. All such notices must be signed by an authorized officer of the Union and submitted to the Manager and/or their authorized representative for approval before being posted.

20. ARTICLE TWENTY- UNION/EMPLOYER MEETINGS

20.1. The Union Committee and the Company shall meet at a time mutually agreed upon for the purpose of discussing matters arising out of the administration of this Agreement. The party requesting such a meeting shall supply an agenda of the matters to be discussed and the meeting between the parties will be held within 14 days following the request for such a meeting. The Company will provide one (1) hour of paid time for the Union committee members to meet in their in-plant office to prepare for such meetings. The Union will provide prior notice of the date and time of the preparation meetings.

21. ARTICLE TWENTY -ONE- HEALTH AND WELFARE

21.1. The Employer agrees to pay the following premium costs for health and welfare coverage during the term of this collective bargaining agreement for all seniority employees who are actually on the payroll of the employer, but only while such employees are not on strike or lay-off.

Effective 111120 17 -Employee Only: $9/week; Family: $18/week Effective 1/1120!8- Employee Only: $11/week; Family: $21/week Effective 11112019- Employee Only: $12/week; Family: $22.50/week

Employees shall not be considered a "seniority employee" unless the employees have completed their probationary period as set out in Article I 0.1. of this Agreement. The benefits shall be as more particularly described and set forth in the respective plan

27

documents and policies of insurance. For ease of reference only, a summary of the Health and Welfare benefits is set forth in Article 21.4 herein. However, it is agreed that the Health and Welfare plans are not incorporated or deemed incorporated into this Collective Agreement. The Company reserves the right to change insurance carriers or to self-insure provided equivalent coverage is maintained.

21.2. Notwithstanding anything to the contrary in the provisions of this Agreement, the benefits and plans of insurance are qualified in their entirety by reference to the underlying policies and contracts of insurance or statutes or regulations. The responsibility rests with the employee to complete all eligibility requirements of the existing carriers of all medical, health and welfare benefits under this Collective Agreement.

21.3. The Company agrees to continue to pay its share of premiums above for employees not actively at work for a period of thirty (30) days following the end of the next full month following the last day worked for employees who are laid off. For employees absent due to illness or injury, this period shall be for a maximum period of up to twenty six (26) weeks from the last day worked. For employees absent due to a Worker's Compensation Injury, this period shall be in accordance with the provisions of the WSIA.

21.4. Summary of Health and Welfare Benefits

21.4.1. Major Medical, Drugs, Paramedical Practitioner 21.4.1.1. I 00% Coinsurance for Major Medical 21.4.1.2. Prescription Drug Card with $4.00 co-pay

o Mandatory Generic/Prescription by law o $9.00 Dispensing Fee Cap

21.4.1.3. 100% Coinsurance and Out of Country Emergency Medical

21.4.2. Life Insurance, AD&D Insurance: 21.4.2.1. IX annual salary to nearest $1,000.00, to a maximum of fifty thousand

($50,000.00) dollars

21.4.3. Dental Plan 21.4.3.1. Benefits will be paid based on the current 0. D. A. Fee Schedule. 21.4.3.2. Level 2 Benefits. Effective July I, 2008 this will change to level 3

benefits (crowns and bridges at 50%) 21.4.3.3. Remainder as in current plan 21.4.3.4. 100% coinsurance 21.4.3.5. Recall exams are covered one (I) time every nine (9) months 21.4.3.6. Annual maximum: $2,000 effective July I, 2013

21.4.4. Short Term Disability: 21.4.4.1. 66 2/3% of regular straight time hourly rate 21.4.4.2. Maximum benefit/claim period is twenty-six (26) weeks per absence 21.4.4.3. Waiting periods:

21.4.4.3.1. First (1st) day- illness, injury requiring hospitalization and outpatient surgery

21.4.4.3.2. Fourth (4th) day- illness, injury where non-hospitalized 28

21.4.4.3.3. Day means calendar day starting with the first day missed from work

21.4.4.4. Employees must be under the care of a licensed physician and provide satisfactory medical proof of claim when requested

21.4.4.5. Short-term disability benefits will be administered by the insurance provider

21.4.5. Long Term Disability 21.4.5.1. 75% of wages to a maximum of$325.00 per week 21.4.5.2. Own occupation maximum of two years coverage. Any occupation

maximum coverage to age 65 21.4.5.3. 182 day waiting period

21.4.6. Vision Care: 21.4.6.1. The insurance carrier will reimburse up to $275 per family member

every two (2) years and yearly coverage for children under 12 for vision care services including eye exam and prescription eye wear including glasses or contact lenses; not for cosmetic purposes. The $275 benefit may be used for laser eye surgery every four ( 4) years.

21.4.6.2. Proper proof of purchase to be submitted to the insurance carrier.

22. ARTICLE TWENTY-TWO- GENERAL

22. I. Tool Allowance:

If requested by the employee the company will advance funds for the purchase of tools required to perform their duties. Such funds to be repaid over the time period mutually agreed to between the company and employee, with the employee reimbursing a minimum of the greater of $25 or I 0% of the loan. Proof of purchase must be supplied to the company within two (2) working days of receiving the advance.

The Company will provide a tool allowance of $150 per year for maintenance employees (mechanics, millwrights, and electricians) to purchase tools to perform their work. The company will consider a tool box as a tool for mobile maintenance employees, and will replace or repair damaged tool boxes based on normal wear and tear, including accidental tipping over, up to $750.

The Company agrees to replace any tool broken while at work by the operators and printing and maintenance departments of equivalent quality. The Company also agrees to pay the cost of necessary periodic tool box wheel replacements, up to one time per employee in the Maintenance department per twenty-four (24) month period and with a maximum of $100 per replacement.

22.2. Education Allowance:

Any associate who, on their own time, undertakes and completes a recognized course in Mathematics, English as a Second Language, Statistical Process Control/Quality, Computers, or credits towards the completion of their Secondary School Graduation Diploma, will be reimbursed for the fees of the course and will receive straight time

29

compensation for their time in class. The course must be completed successfully and an attendance record must be submitted signed by the course instructor. All courses must be pre-approved by the Associate's Supervisor and this allowance covers a maximum of ninety (90) classroom hours per year. Course fees are for tuition only.

22.3. Attendance Bonus:

An attendance bonus of $250.00 for each year that an employee has perfect attendance, meaning that the employee is never late for work or never leaves early and is not off work due to sickness or injury outside of work. The period of time considered for this award is January 1 through December 31 of each year. Employees who were on layoff during any part of the year will have their attendance bonus pro-rated based on the number of full weeks they were on layoff.

22.4. Direct Deposit:

Wages shall be paid on a bi-weekly basis by direct deposit into a bank account designated by the employee. Errors in payments shall be handled in the following manner:

Overpayment: When employees are overpaid for the work performed during the payroll period, the company will deduct the greater of 25% of overpayment or $25 per pay check until the total amount of overpayment is recovered.

Underpayment: If the underpayment results from a processing error committed by the company, the employee will receive a check to make up the underpayment within forty­eight (48) hours of the time the accounting department learns of the error.

22.5. Pension Plan:

The defined benefit Pension Plan as previously adopted by the parties with an effective date of July 1, 2003 shall remain in effect for full-time employees that are covered by this Pension Plan as of Friday January 18,2013.

All other employees, including any full-time employees hired by the Company, after Friday, January 18, 2013 will not be offered or allowed to participate in or covered by the · current Company Pension Plan. These employees will be allowed to participate in a company sponsored Registered Retirement Savings Plan (RRSP) as detailed in Letter of Understanding No. 12.

22.5.1. Vested Service is the period of an employee's uninterrupted employment with the company since their last date of hire, including service, if any, before July 1, 2003.

22.5.2. Credited Service is used to calculate the amount of employees' monthly pension payable from the company pension plan and equals the sum of employees' past service, if any, and employees' future service.

22.5.2.1. Past service is granted to employees who became pension plan members on July 1, 2003 and represents their service with the company

30

immediately prior to July 1, 2003, to a maximum of one year, or back to as far as July 1, 2002.

22.5.2.2. Future service is earned each year from July 1, 2003 onward, based on employees' hours worked with the company. After March 31, 2004, the hours worked will be determined on a plan year basis.

22.5.3. Effective July 1, 2010 the retirement benefit will be paid at $18.25 per month per year of credited service for employees who retire after July 1, 2010. Effective July 1, 2011 the retirement benefit will be paid at $19.25 per month per year of credited service for employees who retire after July 1, 2011.

22.6. Violence in Personal Relationships:

The parties recognize that women sometimes face situations of violence or abuse in their personal life that may affect their attendance or performance at work. The parties agree that when there is adequate verification from a recognized professional (i.e. doctor, lawyer, professional counsellor), a female who is in an abusive or violent personal situation will not be subjected to discipline without giving full consideration to the facts in the case of each individual and the circumstances surrounding the incident otherwise supportive of discipline.

This statement of intent is subject to a standard of good faith on the part of the Company, the Union and affected females, and will not be utilized by the Union or employees to subvert the application of otherwise appropriate disciplinary measures.

22.7. Subcontracting:

22.7.1. It is the intent of the Company to fully utilize employees in the Plant. Company employees will perform work traditionally and normally performed by these employees unless:

22.7.1.1. Appropriate skills are unavailable to complete the work as a whole, or

22. 7.1.2. Necessary equipment is not reasonably and timely available, or

22.7.1.3. Man-hours necessary to complete the job are unavailable within the time period during which the Company feels the job must be completed, or unless use of Company's personnel would curtail or delay necessary work.

22.7 .2. In many instances it may be of our mutual advantage to utilize our own equipment and manpower. However, to do this, the Company will require assurances that the required manpower will be available, including overtime, and that continuity of individual skill will be fully utilized.

31

22.7 .3. If necessary work is to be contracted while employees are on lay-off, management will meet with the Union Committee, discuss and make an honest effort to determine what, if any, part of the necessary work can be performed by laid-off employees

22.7.4. During a plant shutdown for vacation, the Company will utilize the skilled tradesmen wherever possible, within their respective trade and plant. Such employees will work alongside outside contractors where such skills are needed.

22.7.5. If it becomes necessary to deviate from this intent, the Company will discuss with the Union prior to contracting of the work the circumstances that require the proposed contract work.

22.8. Women's Advocate:

The parties recognize that female employees may sometimes need to discuss with another woman matters such as violence or abuse at home or workplace harassment. They may also need to find out about specialized resources in the community such as counsellors or women's shelters to assist them in dealing with these and other issues.

For these reasons, the parties agree to recognize the role of women's advocate in the workplace. The Union will identify the Women's Advocate and an alternate Women's Advocate from amongst the female bargaining unit employees. The Women's Advocate or the alternate Women's Advocate when the regular Women's Advocate is not available, will be available to meet with female members as required, discuss problems with them and refer them to appropriate agency when necessary.

The Company and the Union will develop appropriate communications to inform female employees about the advocacy role of the Women's Advocate.

The Company will grant the Women's Advocate time off without pay to participate in an initial 40 hour training program and an annual three (3) day training program organized by the UNIFOR.

The Women's Advocate will be part of future bargaining committees if there is not already a female member on the committee.

22.9. Paid Education Leave:

The Company agrees to pay into a special fmid $0.02 per hour per employee for all compensated hours for the purpose of providing Paid Education Leave. Such Leave will be for upgrading the employees' skills in all aspects of Trade Union functions. Such monies will be paid on a quarterly basis into a trust fund established by the National Union, UNIFOR, effective from the date of ratification, and sent by the Company to the following address: UNIFOR Canada; Paid Education Fund; 205 Placer Court; Toronto, Ontario M2H 3H9.

32

23. ARTICLE TWENTY-THREE- DURATION AND TERMINATION

23.1. This Agreement shall be for a period of three (3) years commencing on July I, 2016 for purposes of wage increases and continuing in full force and effect until June 30, 2019. All other terms and conditions of the Collective Agreement shall be effective from date of ratification and continue in full force and effect until June 30, 2019. This Agreement shall continue from year to year thereafter, unless either party gives notice in writing to the other not less than thirty (30) days nor more than ninety (90) days prior to the expiry date hereof of that party's intention to terminate this Agreement or to negotiate revisions thereto.

24. ARTICLE TWENTY-FOUR- WAGES

24.1. The job classifications and rates of pay shall be as set forth in Schedule "A" attached hereto and forming part of this Agreement.

24.2. The following provisions shall apply with respect to Schedule "A"

Lead Head premium for employees so appointed of $1.30/hour for each hour worked. Company retains sole discretion to maintain or delete the use of lead hands. Prior to deleting Lead Hand functions, the Company will discuss this with the Union. The Company will post the names of employees who are assigned to the role of Lead Hand along with their Lead Hand responsibilities by department.

24.3. The Company reserves the right to place newly hired licensed Millwright and Electrician employees on the wage grid as it determines appropriate, taking into consideration such employee's experience and qualifications.

24.4. Effective July I, 2016- $.40/hr increase

Effective July 1, 2017- $.40/hr increase

Effective July 1, 2018- $.40/hr increase

All other terms and conditions of the Collective Agreement to be effective the date of ratification.

Term of Contract and Dates

July 1,2016-June30,2017

July 1, 2017- June 30,2018

July I, 2018- June 30,2019

24.5. During the months from May through September, the company employs college students to fill in for employees who are on vacation. The company will pay these college students 75% of the start rate for the job classification in which they are working. The company

33

will not have vacation relief college students working before any regular employees who may be on layoff.

The company maintains the right to appoint Lead Hands in the Maintenance Department.

25. ARTICLE TWENTY -FIVE- SKLLED TRADES

25.1. For the purpose of this agreement, skilled trades shall be those trades and classifications listed as follows: Electrician; Millwright

25.2. Ajoumeyperson in any of the designated skilled trades shall mean any person who holds a certificate of qualification issued by the Ministry of Training, Colleges, and Universities in the trade in which they claim recognition, and

25.2.1. Has served a bona fide apprenticeship of four (4) years- 8,000 hours- and possesses proof of such apprenticeship, or

25.2.2. has eight (8) years practical and general experience covering all phases laid down in the apprenticeship course applicable to the trade in which he claims journeyperson status and possesses ample proof of such experience.

25.3. Employees in the maintenance job classification are those who are currently apprenticing towards an electrical or millwright trade. The maintenance employees will be registered with the ministry and fulfill the requirements for hours and training as defined in 25.2 above.

25.4. The Company agrees to deduct Canadian Skilled Trades Council dues as adopted by the Canadian Skilled Trades Council, equal to one-half (1/2) hour of wages per year. This first such dues deduction will be made from employee's first pay following completion of their probationary period. Thereafter, dues deduction will be made in January of each succeeding year or upon completion of one month's work in the calendar year. These deductions along with the names of the employees shall be remitted to the Financial Secretary of the Local Union. The deduction of the Skilled Trades Council dues shall be a condition of employment in the Skilled Trades.

25.5. Any employee in the maintenance mechanic, millwright and/or electrician job classifications who, on their own time, attend classes in pursuit of an Industrial Maintenance/Millwright or Industrial Electrician skilled trades ticket will be reimbursed for the fees of the course provided the courses are accredited by the Ministry of Training, Colleges and Universities and will receive straight time compensation for their time in class. This includes on-line classes provided by a Ministry of Training, Colleges and Universities accredited on-line educational institute. The course must be completed successfully and an attendance record must be submitted signed by the course instructor. All courses must be pre-approved by the Associa:te's Supervisor and this allowance covers a maximum of ninety (90) classroom hours per year. Course fees are for tuition only. Employees shall be limited to one course at a time so that they will attend no more than two classes a week.

34

25 .6. Skilled Trades Training:

The Company and the Union agree on the following regarding the skilled trades:

Electrical Training

The Company agrees to work with UNIFOR skilled trades representatives to develop an effective electrical apprenticeship training program.

New Technology

When new technology is introduced into the facility, the Company understands that the skilled trades workforce needs to progress with the advancing technology.

In this regard, the Company shall make available appropriate specialized training so that the skilled trades employees, including apprentices, will be capable of performing new or changed work.

35

Appendix A - Wages

Classification Date Start Year1 Year2 Year3

Maintenance 7/1/2016 $22.18 $22.70 $23.38 $24.64

7/1/2017 $22.58 $23.10 $23.78 $25.o4

7/112018 $22.98 $23.50 $24.18 $25.44

Millwright 7/1/2016 $27.48 $28.00 $28.68 $29.94

7/1/2017 $27.88 $28.40 $29.08 $30.34

7/1/2018 $28.28 $28.80 $29.48 $30.74

Electrician 7/1/2016 $27.48 $28.00 $28.68 $29.94

7/1/2017 $27.88 $28.40 $29.08 $30.34

711/2018 $28.28 $28.80 $29.48 $30.74

Printer 7/1/2016 $20.05 $20.92 $21.98 $23.24

7/1/2017 $20.45 $21.32 $22.38 $23.64

7/1/2018 $20.85 $21.72 $22.78 $24.04

Assistant Printer 7/1/2016 $17.99 $18.42 $18.88 $20.o7

7/1/2017 $18.39 $18.82 $19.28 $20.47

7/112018 $18.79 $19.22 $19.68 $20.87

Printer Helper 7/1/2016 $16.99 $17.42 $17.88 $19.o7

7/1/2017 $17.39 $17.82 $18.28 $19.47

7/1/2018 $17.79 $18.22 $18.68 $19.87

OPMR 7/1/2016 $20,48 $20.81 $21.15 $21.92

7/1/2017 $20.88 $21.21 $21.55 $22.32

7/112018 $21.28 $21.61 $21.95 $22.72

Machine Operator 7/1/2016 $17.99 $18.42 $18.88 $20.07

7/1/2017 $18.39 $18.82 $19.28 $20.47

7/1/2018 $18.79 $19.22 $19.68 $20.87

Process Operator 7/1/2016 $19.73 $20.15 $20.61 $21.77

7/1/2017 $20.13 $20.55 $21.01 $22.17

7/1/2018 $20.53 $20.95 $21.41 $22.57

36

Slitter Operator 7/112016 $17.99 $18.42 $18.88 $20.07

7/1/2017 $18.39 $18.82 $19.28 $20.47

7/1/2018 $18.79 $19.22 $19.68 $20.87

Material Handlers 7/112016 $17.99 $18.42 $18.88 $20.07

7/112017 $18.39 $18.82 $19.28 $20.47

7/112018 $18.79 $19.22 $19.68 $20.87

Utility 7/1/2016 $16.31 $16.62 $17.05 $17.67

7/112017 $16.71 $17.02 $17.45 $18.07

7/112018 $17.11 $17.42 $17.85 $18.47

Packer 7/112016 $16.34 $16.62 $17.06 $18.45

7/112017 $16.74 $17.02 $17.46 $18.85

7/1/2018 $17.14 $17.42 $17.86 $19.25

Production Material Handler 7/112016 $17.61 $17.95 $18.15 $18.75

7/112017 $18.01 $18.35 $18.55 $19.15

7/112018 $18.41 $18.75 $18.95 $19.55

Operator Helper 7/112016 $16.31 $16.65 $16.84 $17.45

7/1/2017 $16.71 $17.05 $17.24 $17.85

7/112018 $17.11 $17.45 $17.64 $18.25

Tool Crib Attendant 7/112016 $16.34 $16.62 $17.06 $18.45

7/1/2017 $16.74 $17.02 $17.46 $18.85

711/2018 $17.14 $17.42 $17.86 $19.25

QA 7/112016 $17.99 $18.42 $18.88 $20.o7

7/112017 $18.39 $18.82 $19.28 $20.47

7/1/2018 $18.79 $19.22 $19.68 $20.87

Cup Technician 7/1/2016 $21.56 $21.98 $22.44 $23.60

7/1/2017 $21.96 $22.38 $22.84 $24.00

7/1/2018 $22.36 $22.78 $23.24 $24.40

Multi-ticketed skilled craftsman Millwright and Electrician add $2.00 over rate for single ticket.

37

LETTERS OF UNDERSTANDING

LETTER OF UNDERSTANDING #I

Deleted as agreed - 7/1107

LETTER OF UNDERSTANDING #2

Deleted as agreed - 7/1/07

Letter of Understanding #3-Reqnests for Shift Change

The purpose of this letter is to address the situation created when an employee changes to outside their classification repeatedly.

If an employee requests a shift change, then such employee will forfeit the opportunity to request future shift changes for a period of six (6 months commencing the date acceptance is communicated to the employee.

Changes in classification will continue to be as per the collective agreement. However Shift Changes will not result in the payment of any overtime premiums.

Letter of Understanding #4

With respect to the application of Article 14.4 of the Collective Agreement, the Company may, in its sole discretion, grant compassion leave to employees. Such leave must be granted in writing, and must be identified as compassion leave for purposes of Article 14.4. of the collective agreement. If such compassion leave is granted by the company, and the employee misses scheduled hours of work for the week, such compassion leave shall be deemed hours worked for the purpose of payment of overtime in the event that the employee comes into work on a non­scheduled work day immediately after the compassion leave.

Emergency leave days under the provisions of the Employment Standards Act will not qualify under the provisions under this Letter of Understanding unless such emergency leave day is specifically designated and granted by the Company, in its sole discretion, as a compassion leave day.

Letter of Understanding #5- Single Day Vacation

The following list constitutes the rules and procedures under which the single day vacations will be administered. They may be changed upon mutual agreement of the parties.

I. Employees who have more than two weeks of vacation may take up to two weeks of vacation in single days. For employees on a 12-hour schedule, the first week an employee takes in single day increments will be four days; the second week, if taken, will be for three days.

2. All Single vacation days must be pre-scheduled at least seven days in advanced and approved on required vacation request form.

3. Vacation requests for whole weeks will be give preference over single days or partial weeks. 4. Same day call-offs will not be eligible for single vacation days.

38

5. After the departmental vacation schedule has been approved and posted, only written requests for single vacation days will be approved on a first-come-first-served basis.

6. With respect to vacations during Christmas time, only single day vacations will be considered for possible scheduling.

7. No advance checks are issued for individual vacation days. 8. All single vacation days must be entered on annual vacation preference form with rest of

days whether consecutive or not. Single day vacation requests submitted on the annual vacation preference form will be given preference to those submitted after the departmental vacation schedule has been approved and posted.

9. Single day vacations may be taken as a single day or in increments of two consecutive days.

Letter of Understanding #6 - Switch Shift

The following list constitutes rules and procedures under which the switching of shifts will be administered. They may be changed upon mutual agreement of the parties

1. Switch shifts will be limited to the same work week. For example, if employee 'A' agrees to work for employee 'B' on Saturday, employee 'B' must work for employee 'A' on one of employee 'A's' regularly scheduled days during that work week.

2. Switch shifts are limited to two times per month regardless of who initiates the switch shift.

Letter of Understanding #7- Plant Closure

In the event of a planned closure of the plant, the Company agrees to the following:

• It will provide sixty (60) days notice, and • It will negotiate with the Union regarding the effects of the closure on the bargaining unit

employees

Letter of Understanding #8- Pay Equity

The joint Company and Union committee, comprised of three (3) Company Representatives and three (3) Union Representatives, will meet within twelve (12) months after the conclusion of the collective bargaining negotiations for a renewed agreement to confirm that the wage rates set forth in the collective bargaining agreement are in compliance with the Pay Equity Act.

Letter of Understanding #9- Vacation Request

Any employee who submits a vacation request will be given a signed copy by the supervisor to acknowledge receipt of the request, and have the request answered within seven (7) working days after vacation request is submitted. The employee will receive a signed copy of the vacation request form to confirm the request has been granted, and only requests submitted on the approved vacation request form will be considered and deemed valid.

39

Letter of Understanding# 10- Cup Technician Position

The creation of the Cup Technician position will not reduce the ratio of skilled trades to the number of overall employees. The number of trades people will not be reduced below 9% of the workforce. The number of Cup Technicians will not exceed two (2) per shift. Cup Technicians cannot bump Maintenance, Millwrights, or Electricians. The cup technician role is to do tool changes, adjust cup specifications, quality related troubleshooting, and assist in PM's as agreed to by the Skilled Trades team. Cup Technicians will not take overtime from skilled trades and maintenance.

Letter of Understanding #11 - Early Release Program

During the 2013 calendar year the Company will offer a severance package to all full-time employees employed with Pactiv as of January 18, 2013 that elect to end their employment with Pactiv. The Company will base the amount of severance on an individual employee's years of service and will ensure all terms of the severance comply with the Pension Plan and Canadian Law. A minimum of sixty-five (65) hours for each year of service and six (6) months of health and welfare benefits will be offered in the 2013 severance package.

The Company has the option to offer a similar severance package to full-time employees employed with Pactiv as of January 17,2013 during the 2014 and 2015 calendar years.

Letter of Understanding #12 -Registered Retirement Savings Plan (RRSP)

All full-time employees will be offered the opportunity to participate in a Company sponsored Registered Retirement Savings Plan (RRSP). Employees hired on or before January 18, 2013 are currently eligible to participate in the Pension Plan and will be eligible to contribute to the RRSP without a company match, as soon as administratively possible following ratification, but by no later than January 1, 2017.

Employees hired after January 18, 2013 will be offered the opportunity to participate in a Company sponsored Registered Retirement Savings Plan (RRSP). These employees will not be eligible to participate in the Pension Plan.

Each employee, hired after January 18, 2013, that elects to participate in the Company sponsored RRSP will receive a company matching contribution as detailed below:

Year 1 of Contract- Employer Match 2%

Year 2 of Contract- Employer Match 2%

Year 3 of Contract- Employer Match 2%

40

Letter of Understanding #13- Temporary Employees

The Company shall have the right to hire temporary help during the following time periods:

January 1 '' through March 31 ''

July I" through September 1 ''

o The number of temporary employees allowed to work each day is limited to twelve percent (12%) of the total bargaining unit headcount.

o The company must first use overtime when making the weekly schedule - before scheduling a temporary.

o Higher paying classifications must first be filled by bargaining unit members when available.

o In the event of a surge in business that may require the use of temporaries outside of the designated time periods management must contact the unit National Representative or Local President to seek mutual agreement to use temporaries.

o Temporaries will be paid the rate of probationary employees in Appendix A wages. o After a temporary worker is hired as a full time Pactiv Employee and has successfully

completed his or her probationary period as described in Section 10.1 (worked 540 hours in a six (6) month period after being hired as a Pactiv full time employee), such individual's seniority date shall be adjusted to reflect the first day worked as a temporary worker.

Letter of Understanding #14

The Group Benefit Plan for Pactiv Canada London Union Hourly employees will be modified, effective 11112017, so that the Paramedical Expense Maximum for Physiotherapists and Chiropractors shall not exceed a combined total of $700 per calendar year.

Letter of Understanding #15- Voluntary List

For purposes of clarifying the procedure with regard to the voluntary overtime List, as set forth in 14.5.1-14.5.3, the Company and the Union have agreed to outline the following current procedure:

A voluntary overtime signup list (the "List") will be established for each department (Operations, Printing, Maintenance, Quality, and Shipping), which will allow employees to designate their seniority date, shifts for which they are available for overtime work, current classification, and other positions for which they are interested in working overtime and have the skills, abilities, experience and qualifications to perform overtime work in accordance with Company production requirements ("the necessary qualifications").

In preparing the schedule, the Company will schedule overtime first for employees who normally work within the department classifications for which the Company deems overtime necessary, in seniority order. If an insufficient number of volunteers within the necessary department classifications signed the List, the Company will then schedule employees for overtime opportunities outside of their respective department classifications in seniority order, provided they have the required skills and abilities to perform the work and have noted their request for out of

41

department classification overtime. When the schedule is completed, a line will be drawn on the List to indicate who requested overtime prior to the completion of the schedule. All volunteers scheduled will be noted on the List.

After the line has been drawn on the List, employees may sign the List below the line indicating their willingness to work overtime if the need should arise and specifying when they are available for overtime and positions for which they are willing to work overtime.

If the Company requires any further overtime for a particular shift after the schedule has been made, then the total List will be used and employees on the List (both above and below the line) will be called for overtime within their respective department classifications in seniority order without regard to the line. If the call is not answered by the employee or is answered by an answering system, the supervisor will continue through the List and call the next senior person without delay and without waiting for a return call. If the department classification has been exhausted, then the Company will call out of department classification employees, provided they have the required skills and abilities to perform the work and have noted their request for out of classification overtime.

LIST OF ARBITRATORS

The parties mutually agree to utilize the following roster of arbitrators in rotation in accordance with Article Nine: -Ian Hunter - Randy Levinson - Wes Raynor

42

In Witness WhereoF, effccli\'e August28, 2016

For lhc Union

' Kevin Slout, Union Commiltcc

d4'~ Bronya Wiklorowi~:z, Human Resources Mo.nngc:r Chris Gerrits, Union Committee

f4.t~v2A:,J Reb DIU'bishirc, Union CommiHcc