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FILE No. CERT. FILE CERT.DATE TOTAL EMPS t3 /:f 2005-2008 COLLECTIVE AGREEMENT BETWEEN INDWISCO LIMITED EFF. DATE :;Jlf .. EXP. OATE:;la--A/1'1.,.. COOING CONTROL DATt CODER AND IDENT CODED UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANU ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS MAR 3 0 2006 COLLECTIVE BARGAINING Arti !leJNFORMATION SERVICES UNION UNITED STEEL WORKERS) INDEX EMPLOYER OTHER lAW t= 1 eo 11 1 Purpose ............................................................................................................................ 2 2 Recognition and Scope ................................................................................................... 2 3 Relationship ............... :.................................................................................................... 3 4 Management Rights ........................................................................................................ 4 5 No Strikes or Lock-Outs ................................................................................................. 5 6 Union Security ................................................................................................................ 6 7 Union Representation ...................................................................................................... 7 8 Negotiation Committee ................................................................................................... 8 9 Grievance Procedure ............... : ....................................................................................... 8 10 Discharge and Discipline .............................................................................................. 12 11 Seniority ........................................................................................................................ 12 12 Job Postings for Permanent Job Vacancies ................................................................... 14 13 Lay-Off and Recall ....................................................................................................... 15 14 Temporary Transfers ..................................................................................................... l6 15 Leave of Absence ......................................................................................................... 16 16 Medical Absences ......................................................................................................... 17 17 Bulletin Boards ............................................................................................................ 18 18 Jury Duty .......................................................... ,,:··························································· 18 19 Bereavement Leave ........................................... :.......................................................... 18 20 Health and Safety .......................................................................................................... 19 21 Plant Holidays .............................................................................................................. 21 22 Vacations ....................................................................................................................... 22 23 Hours of Work .............................................................................................................. 23 24 Wages ............................................................................................................................ 25 25 Benefits ......................................................................................................................... 25 26 Waiver ........................................................................................................................... 27 27 Duration ....................................................................................................................... 27 Schedule "A"- Classifications and Wage Rates (1st Year) .......................................... 29

:f - Ontario Fabrication... · f • • collective agreement between: indwisco limited (the "company") -and-united steel, paper and forestry, rubber, manufacturing, energy, allied

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• FILE No.

CERT. FILE

CERT.DATE

TOTAL EMPS t3 /:f 2005-2008 COLLECTIVE AGREEMENT

BETWEEN

INDWISCO LIMITED

EFF. DATE :;Jlf .. tJ6/).,~IKJf"

EXP. OATE:;la--A/1'1.,.. ~9

COOING CONTROL DATt CODER AND

IDENT CODED ~3

UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANU ~fc{1Jffl~G, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS IN'ffiRN!\TMIH~:r----..---1

MAR 3 0 2006

COLLECTIVE BARGAINING Arti !leJNFORMATION SERVICES

UNION UNITED STEEL WORKERS)

INDEX

EMPLOYER

OTHER lAW t= 1 eo 11

1 Purpose ............................................................................................................................ 2 2 Recognition and Scope ................................................................................................... 2 3 Relationship ............... : .................................................................................................... 3 4 Management Rights ........................................................................................................ 4 5 No Strikes or Lock-Outs ................................................................................................. 5 6 Union Security ................................................................................................................ 6 7 Union Representation ...................................................................................................... 7 8 Negotiation Committee ................................................................................................... 8 9 Grievance Procedure ............... : ....................................................................................... 8 10 Discharge and Discipline .............................................................................................. 12 11 Seniority ........................................................................................................................ 12 12 Job Postings for Permanent Job Vacancies ................................................................... 14 13 Lay-Off and Recall ....................................................................................................... 15 14 Temporary Transfers ..................................................................................................... l6 15 Leave of Absence ......................................................................................................... 16 16 Medical Absences ......................................................................................................... 17 17 Bulletin Boards ............................................................................................................ 18 18 Jury Duty .......................................................... ,,:··························································· 18 19 Bereavement Leave ........................................... : .......................................................... 18 20 Health and Safety .......................................................................................................... 19 21 Plant Holidays .............................................................................................................. 21 22 Vacations ....................................................................................................................... 22 23 Hours of Work .............................................................................................................. 23 24 Wages ............................................................................................................................ 25 25 Benefits ......................................................................................................................... 25 26 Waiver ........................................................................................................................... 27 27 Duration ....................................................................................................................... 27

Schedule "A"- Classifications and Wage Rates (1st Year) .......................................... 29

• • Schedule "B"- Classifications and Wage Rates (2nd Year) ......................................... 31 Schedule "C"- Classifications and Wage Rates (3rd Year) ......................................... 33 Letter of Understanding No. 1 ...................................................................................... 35 Letter of Understanding No.2 ...................................................................................... 36

-- 1 --

. f • •

COLLECTIVE AGREEMENT

BETWEEN:

INDWISCO LIMITED

(the "Company")

-and-

UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL

UNION (UNITED STEEL WORKERS)

(the "Union")

ARTICLE 1 -PURPOSE

1.01 The general purpose ofthis Agreement is to secure the full benefits of orderly

collective bargaining, an amicable method of settling any differences that may arise between the

parties and to set forth the conditions of employment to be observed by the Company and the

Union.

ARTICLE 2- RECOGNITION AND SCOPE

2.01 The Company recognizes the Union as the sole and exclusive bargaining agent for

all employees of Indwisco Limited in the Province of Ontario, save and except Supervisors,

--2 --

I } • •

persons above the rank of Supervisor, office, clerical and sales staff.

2.02 Temporary employees will not be utilized to perform bargaining unit work where

bargaining unit employees who are available, able and qualified to perform such work are on lay­

off. Management personnel will not perform bargaining unit work unless:

(a) there is an emergency;

(b) there are no qualified members of the bargaining unit available to perform the work; or

(c) the Manager or Supervisor is involved in providing instructions to another person or

persons

2.03 Wherever the singular or masculine is used in this Agreement, it shall be

considered as if the plural or feminine had been used wherever the context so requires.

2.04 Lead Heads are not authorized to impose discipline upon other Employees.

ARTICLE 3 - RELATIONSHIP

3.01 The Company and the Union agree that there shall be no discrimination in the

training, upgrading, promotion, transfer, lay-off, discharge, discipline or otherwise of employees

because of race, sex, creed, religion, colour, age or national origin, sexual preference, handicap,

family status or membership or office in the Union.

3.02 The Company and the Union agree to observe the provisions of the Ontario

Human Rights Code and the Canadian Bill o(Rights.

3.03 The Company agrees it shall not interfere with, restrain, coerce or discriminate

against employees in their lawful right to become and remain members of the Union and to

participate in its activities.

3.04 The Union agrees that, except as provided for in this Agreement, there will be no

Union activity on the premises of the Company during the employees' working hours except by

agreement with the Company.

3.05 On the date of hire, the Company shall introduce each new employee to his Union

-- 3 --

r' • • Steward.

ARTICLE 4- MANAGEMENT RIGHTS

4.01 The Union recognizes that the management of the Company and direction of the

working forces are fixed exclusively with the Company. Without restricting the generality of the

foregoing, the Union acknowledges that it is the exclusive right of the Company to:

(a) operate and manage its affairs and facility in as efficient and economic a manner as it

sees fit;

(b) hire, retire, assign, direct, promote, demote, classify, transfer, lay off and recall

employees;

(c) suspend, discharge or otherwise discipline seniority employees for just cause;

(d) terminate employment if the record of the employee indicates an excessive amount of

time off or recurring or repetitive time off;

(e) suspend, discipline or discharge a probationary employee for any reason satisfactory to

the Company in the discretion of the Company whether for just cause or otherwise;

(t) determine: the nature and kind of businesses to be conducted by the Company; the

services to be rendered and the method by which services will be rendered; the kinds and

locations of equipment; the control of materials and goods; the methods, processes and

techniques of work; the schedules of work, including overtime; the number and kind of

personnel to be employed; the standards of performance;

(g) make studies of and institute changes in jobs, job content or job assignment; discontinue,

reorganize, limit, combine, substitute any operation or part thereof; determine all other aspects of

the Company's operation;

(h) make, enforce and alter from time to time reasonable rules and regulations to be observed

by employees including, but not limited to, rules and regulations respecting confidentiality,

conduct, dress, safety and security of the Company, its property and personnel.

--4 --

• • The Company agrees that it will not exercise the above-noted rights in a manner

inconsistent with the express terms of this Collective Agreement.

4.02 Without restricting the right of the Company to discharge for just cause, the

specific penalty for the following infractions shall be discharge:

(a) misappropriation of funds or any other fraudulent action;

(b) theft, aiding in the commission of theft or failure to report theft;

(c) deliberate destruction or sabotage of Company, customer, employee or supplier property;

(d) unauthorized disclosure of confidential information regarding the affairs of the Company

or any of its customers or clients;

(e) being under the influence of alcohol or unprescribed drugs while on the job;

(t) falsification of application for employment or documents related thereto;

(g) fighting on Company premises and/or while on Company time;

(h) discrimination under the Human Rights Code, including sexual harassment;

(i) violation of Company rules governing health and safety or violation of the Occupational

Health and Safety Act of Ontario or the Regulations thereunder;

(j) violation of rules governing environmental protection or violation of the Environmental

Protection Act or the Regulations thereunder.

ARTICLE 5- NO STRIKES OR LOCK-OUTS

5.01 The Company agrees that it will not cause or direct any lock-outs of employees

and the Union agrees that it will not cause or direct any strikes of its members.

5.02 Any employee who participates in any illegal strike shall be subject to discharge.

5.03 The word "strike" and the word "lock-out" shall be defined in accordance with the

definitions set out in the Ontario Labour Relations Act.

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• ARTICLE 6- UNION SECURITY

6.01 The Company agrees that all employees shall become and remain members of the

Union as a condition of their continued employment.

6.02 The Company shall deduct from the pay of each member of the bargaining unit,

weekly, such Union dues, fees and assessments as prescribed by the Constitution of the Union.

6.03 The Company shall remit the amounts so deducted, prior to the fifteenth (15th)

day of the month following, by cheque. The cheque shall be sent to the International

Secretary/Treasurer of the United Steelworkers, AFL-CIO-CLC, P.O. Box 13083, Postal Station

"A", Toronto, Ontario, M5W 1V7 in such form as shall be directed by the Union to the

Company, along with a Dues Remittance Form R-115. A copy of the Dues Remittance Form R-

115 shall also be sent to the Union office designated by the Area Coordinator.

6.04 The monthly remittance shall be accompanied by a statement showing the names

of each employee from whose pay deductions have been made and the total amount deducted for

the month. Such statements shall also list the names of the employees from whom no deductions

have been made and the reasons why, along with the current standard forms required by the

International Union.

6.05 The Union agrees to indemnify and save the Company harmless against all claims

or other forms of liability that may arise out of, or by reason of, deductions made or payments

made in accordance with this Article.

6.06 The Company agrees to record total Union dues deductions paid by each

employee on his/her T -4 Income Tax Receipt.

6.07 The Employer shall pay $500.00 each calendar year, payable by the end of

January, to the Steelworkers Humanity Fund, c/o United Steelworkers, National Office, 234

Eglinton Avenue East, Suite 800, Toronto, Ontario, M4P 1K7.

-- 6 --

ARTICLE 7- UNION REPRESENTATION

7.01 The Company acknowledges the right of the Union membership to elect or

otherwise select Union Stewards for the purpose of representing employees in the handling of

complaints and grievances.

7.02 The membership may elect two (2) Stewards and one (1) alternate from amongst

employees in the bargaining unit.

7.03 The Company shall be notified by the Union of the names of the Union Stewards

and the areas they are representing and any changes made thereto.

7.04 The Company agrees to recognize and deal with a Union Grievance Committee of

not more than two (2) employees being the Local Union Plant Chairperson and the Steward

involved.

7.05 When the legitimate business of a Grievance Committee person or Union Steward

requires him to leave his work station and/or department, he shall first receive permission from

his Supervisor (such permission shall not be unreasonably withheld).

7.06 The Company agrees that Stewards and Grievance Committee persons shall not

suffer loss of pay for regular hours lost due to time spent in processing grievances. There shall

be no abuse of this provision.

7.07 In order for an employee to be eligible to be a Steward or part of the Negotiating

Committee, the employee must have successfully completed his probationary period.

7.08 Stewards shall not be recognized until such time as the Company has been

notified in writing of their appointment by the Union.

7.09 If an authorized representative, who is not employed by the Company, wants to

speak to Local Union representatives about a grievance or other official business, he shall advise

the Plant Manager, or his designated representative, who shall then call the Local Union

representative to an appropriate place where they may confer privately. These talks will be

arranged so that they will not interfere with production.

-- 7 --

' I

7.10 If the employee so requests, the employee may have the presence of a Union

Steward at any meeting where the Company is suspending or discharging a seniority employee.

7.11 The Company and the Union agree to meet monthly, if requested by the other

party, to discuss and resolve issues of mutual concern. The party making the request will

provide a proposed agenda at the time of making the request.

7.12 The Company shall provide a mail slot or mailbox in the office area for the Plant

Chairperson, to which it can deliver documents that are to be delivered to the Plant Chairperson

under this Agreement.

ARTICLE 8- NEGOTIATION COMMITTEE

8.01 The Company agrees to recognize and deal with a Negotiating Committee of not

more than one ( l) employee plus the Plant Chairperson, who shall be regular employees of the

Company, along with representatives of the International Union. The Company agrees to pay

employees sitting on the Negotiating Committee at their regular hourly rate for working hours

lost while meeting with the Company in negotiations, up to a maximum payment of six (6) full

days' wages per employee.

ARTICLE 9 -GRIEVANCE PROCEDURE

9.01 The Company and the Union agree that the specifically designated grievance

procedure shall be properly followed within the time limits provided.

Whenever the term "grievance procedure" is used in this Agreement, it shall be

considered as including the arbitration procedure.

9.02 "Grievance" shall mean a complaint or claim concerning the discipline or

discharge of a seniority employee, or a dispute with reference to the interpretation, application,

administration or alleged violation of this Agreement.

9.03 The Company shall be under no obligation to consider or process any grievance

-- 8 --

unless such grievance has been presented to the Company in writing at Step No. 1 of the

grievance procedure within seven (7) working days from the time the circumstances upon which

the grievance is based were known or should have been known to the grievor. However, if the

Company does consider or process a grievance that has been presented late, the Company shall

not be estopped or precluded at ~my stage from taking the position that the grievance is late and

not arbitrable.

9.04 All time limits referred to in the grievance procedure herein contained shall be

deemed to be exclusive of Saturday, Sunday or holidays designated in Article 21.0 1.

9.05 No employee shall have a grievance until he has discussed his complaint with his

immediate Supervisor. If his immediate Supervisor does not settle the matter, the employee's

written grievance shall be processed as follows:

Step No.1

If an employee has a grievance, the grievance shall, within the seven (7) working

days referred to in Article 9.03 hereof, be reduced to writing and presented to the employee's

immediate Supervisor. If the employee wishes, he may, after obtaining permission from his

immediate Supervisor, have his Steward accompany him to see his immediate Supervisor.

The written grievance shall identify the facts and issues giving rise to the

grievance, and the Article or Articles of the Collective Agreement allegedly violated and the

remedy desired, and shall be signed by the grievor and counter-signed by the grievor's Steward

and dated.

Failing settlement, the immediate Supervisor shall deliver his decision in writing

within five (5) working days following the presentation of the grievance to him.

Step No.2

In the event the grievance is not settled at Step No. 1, the written grievance may

be presented to the General Manager within five (5) working days of the Step No. 1 reply, but

not thereafter.

-- 9 --

• • The General Manager shall hold a meeting with the grievor within seven (7)

working days of the presentation ofthe grievance to the General Manager. If the employee

wishes, he may have his Steward and a representative from the International Union accompany

him to the meeting.

Failing settlement, the General Manager shall deliver his decision in writing

within five (5) working days following the meeting with the grievor.

Step No.3

In the event that the grievance is not settled at Step No. 2, the party having

carriage of the grievance may request arbitration of the grievance by giving notice in writing to

the other party within twenty (20) working days from the delivery of the decision at Step No. 2,

but not thereafter. If a request for arbitration is not so given within such twenty (20) working day

period, the decision at Step No. 2 shall be final and binding upon both parties to this Agreement,

and upon any employee involved.

When either party to this Agreement requests that a grievance be submitted to

arbitration, it shall provide the other party with a written notice to arbitrate containing a list of

three (3) proposed single arbitrators. The notice shall also specify all of the outstanding issues of

the written grievance to be dealt with by the sole arbitrator and the remedy sought.

If no name on the list of proposed single arbitrators is satisfactory to the recipient

of the notice, the recipient shall, within :five ( 5) working days of receipt of such notice, respond

with an alternative list of three (3) proposed single arbitrators. Should the parties fail to agree on

a single arbitrator, either party may apply to the Ministry of Labour for the appointment of a

single arbitrator.

9.06 No matter may be submitted to arbitration that has not been properly carried

through all requisite steps of the grievance procedure within the time specified. The time limits

may only be extended where the parties agree to do so in writing.

9.07 The arbitrator shall not be authorized to make any decision inconsistent with the

-- 10 --

• provisions of this Agreement, nor to alter, modify, add to or amend any part of this Agreement.

9.08 Each party hereto shall bear its own costs of and incidental to any such arbitration

proceeding. The fees and charges of the arbitrator shall be borne equally by the parties.

9.09 A Union Policy grievance or a Company grievance may be submitted to the

Company or the Union, as the case may be, in writing, within ten (10) working days from the

time the circumstances upon which the grievance is based were known or should have been

known by the grieving party. A meeting with the Company and the Union shall be held within

ten (10) working days of the presentation of the written grievance. Such meeting shall take place

within the framework of Step No.2 of the foregoing grievance procedure. The Company or the

Union, as the case may be, shall give its written decision within five (5) working days after such

meeting has been held.

If the decision is unsatisfactory to the grieving party, the grievance may be

submitted to arbitration within twenty (20) working days of the delivery of such written decision

and Step No. 3 of this Agreement shall be followed.

The provisions of this Article 9.09 shall not be used by the Union to institute a

grievance directly affecting an employee or employees that such employee or employees could

themselves have instituted.

9.10 Where more than one (1) employee has the same grievance arising out of the

same set of facts or circumstances, a Group grievance shall be filed by having all such

employees sign a written grievance at Step No. I. However, if requested by the Company, only

two (2) of such employees may be present at the grievance meeting. Such Group grievance shall

then be processed within the framework of the grievance procedure.

9.11 The time limits referred to in this grievance procedure may be extended where the

parties mutually agree in writing.

9.12 Notwithstanding anything to the contrary contained within Article 9, a grievance

concerning the discharge of a seniority employee or the suspension of a seniority employee for a

-- II

• period of more than five (5) working days will be filed at Step No.2 of the grievance procedure

within five (5) working days of the date of the discipline or discharge, but not thereafter.

ARTICLE 10 -DISCHARGE AND DISCIPLINE

10.01 The discharge of an employee who has not completed his probationary period,

hereinafter referred to as a "probationary employee", shall be at the sole discretion of the

Company.

10.02 Subject to the other express provisions of this Agreement, the discharge of an

employee who has completed his probationary period, hereinafter referred to as a "seniority

employee", shall be for just cause.

10.03 Disciplinary notices shall be withdrawn from the employee's record after a period

of fifteen (15) months from date of issue if the employee has had no further disciplinary notices

in such fifteen (15) month period.

10.04 Copies of any discharge or discipline will be given to the attending Union

Steward, with a copy to the Plant Chairperson. Any delay in providing such discharge or

discipline shall only extend the time for filing a grievance.

ARTICLE 11 - SENIORITY

11.01 Seniority is defined for the purpose of this Agreement as the length of continuous

service of any employee of the Company, computed from the date ninety (90) working days prior

to the date such employee actually attains seniority by completing his probationary period in the

manner set forth in Article 11.02 hereof, and shall apply only to the extent specifically provided

in this Agreement. If two (2) or more employees have the same seniority date, they will be

placed on the seniority list in alphabetical order.

11.02 An employee shall not have any seniority and shall be considered a probationary

employee until he has completed ninety (90) continuous working days of active service with the

-- 12 --

• • Company. During such probationary period he will have no seniority rights.

11.03 The seniority of an employee shall be lost and his employment automatically

terminated for any of the following reasons:

(a) if he quits his employment;

(b) if he is retired;

(c) if he is discharged for just cause and is not reinstated;

(d) if he has been laid off for a period of twelve ( 12) months;

(e) if he is absent from his duties for three (3) or more consecutive working days, unless the

employee can establish that he has a verifiable bona fide reason and that he used his best efforts

to be at work;

(t) if he is absent from his duties for three (3) or more consecutive working days without

notifying the Company in advance of his absence and the expected duration ofthe absence,

unless the employee can demonstrate that he was unable through reasonable efforts to provide

this notification;

(g) if an employee overstays a vacation or leave of absence without in advance securing the

extension of such leave of absence or vacation from the Plant Manager;

(h) if an employee who is recalled to work fails to return within five (5) working days of

being telephoned or having notice of recall delivered to his residence. Such mailing shall be

delivered to the last address of the employee that the Company has in its files for that employee

and such mailing shall be deemed to have been received by the employee. If the Company recalls

the employee by telephone, it will be confirmed by mail delivered in the above manner;

(i) if an employee utilizes a leave of absence for a purpose other than that for which it was

granted;

(i) if an employee fails to return to work immediately after being recalled after the Company

has been notified by a doctor or the Workers' Compensation Board that the employee is able to

return to his job.

-- 13 --

• • It will be the responsibility of the employee to provide written notification of any

change in address or telephone number to the Plant Manager. Any notification telephoned to or

delivered to or mailed to the telephone number or address that is on the Company's records shall

be deemed to have been received by the employee.

11.04 Employees who accept a position with the Company that is outside of the

bargaining unit shall continue to accumulate bargaining unit seniority for the first six (6) months

after such transfer, after which time all bargaining unit seniority shall be lost. If such an

employee later returns to the bargaining unit, he shall have no seniority but his full service shall

be recognized for purposes of the collective agreement wherever length of service, rather than

seniority, determines entitlement.

ARTICLE 12 -JOB POSTINGS FOR PERMANENT JOB VACANCIES

12.01 (a) When a permanent job vacancy occurs or a new job is created which the

Company desires to fill, notice shall be posted on appropriate bulletin boards. The notice shall

set out the job title, qualifications required and wage rate. Such notice shall be posted for three

(3) working days. An application for a position so posted may be submitted by an employee on

behalf of another employee who is absent due to vacation or short-term leave of absence at the

time of posting.

(b) The job posting procedure specified in this Article shall apply only in respect of

the original posted vacancy and the subsequent vacancy, if any, created by the filling of the

original vacancy. Any further vacancies, created by the filling of the above vacancies, may be

filled at the Company's discretion, without resort to the job posting procedure.

12.02 Employees who apply shall be considered for the position on the basis of their

qualifications and seniority. If the Company is satisfied that qualifications of employees to

perform the job, without training, are equal, then the most senior employee shall be promoted.

The successful applicant shall not be eligible to bid on another vacancy within a six (6) month

-- 14 --

• • period from his appointment to the new job without the consent of the Plant Manager.

12.03 (a) If the Company is satisfied that nobody who has applied is qualified to

satisfactorily perform the requirements ofthe job, without training, the Company may select any

employee in the bargaining unit for training or appoint an employee from outside the bargaining

unit or hire a new employee.

(b) Nothing within this Article limits the Company's right to temporarily assign or

transfer employees within the same classification to different job assignments within that

classification.

12.04 This Article will not apply where the Company does not expect the vacancy to

exceed one hundred and twenty (120) calendar days or where the vacancy is caused by illness,

accident, vacations or leave of absence. Such temporary vacancies may be filled at the sole

discretion of the Company.

12.05 For the purposes of the Collective Agreement "qualifications" shall be defined as

an employee's skill, ability, education and experience.

ARTICLE 13 -LAY -OFF AND RECALL

13.01 For the purpose of lay-off and recall, seniority shall be considered on a bargaining

unit-wide basis.

13.02 If the Company decides to decrease its workforce and the qualifications of the

employees to perform the work are relatively equal, employees will be laid off work in reverse

order of seniority.

13.03 If the Company decides to increase its workforce, it shall first consider any

employees who are on lay-off. For any position other than maintenance mechanic, other

tradesperson, or truck driver, the Company shall recall the most senior employee provided that

this employee could become, and does become, qualified and able to perform the work after ten

(10) working days oftraining. For the position ofmaintenance mechanic, other tradesperson, or

-- 15--

truck driver, the Company shall recall the most senior employee, who has the qualifications to

perform the available work without training.

13.04 In cases of a temporary lay-off (i.e., ten (1 0) working days or less), seniority need

not be considered. No employee will be laid off out of seniority pursuant to this Article for more

than ten (10) days per calendar year (including partial days).

ARTICLE 14 - TEMPORARY TRANSFERS

14.01 In the case of an employee who is temporarily transferred to a classification that is

paid at a different hourly rate, the following will apply:

(a) If the temporary transfer is to a lower-rated job, and for the convenience of the employee

(i.e., in order to accommodate the employee or to allow the employee to avoid lay-oft), the

employee shall be paid at the lower hourly rate;

(b) If the temporary transfer is to a lower-rated job, and for the convenience of the Company,

the employee shall be paid at his regular hourly rate;

(c) If the temporary transfer is to a higher-rated job, the employee will be paid at the higher

hourly rate, provided such transfer lasts four ( 4) consecutive hours or more.

ARTICLE 15 - LEAVE OF ABSENCE

15.01 Leave of absence shall mean an absence from work requested by an employee in

writing and consented to by the Company in writing. All requests for personal leave of absence

shall be made to the Plant Manager in writing by the employee concerned and the letter shall

indicate in full the reason for requesting the leave of absence. Any leave granted shall be in

writing covering a specific period of time. The granting or withholding of a leave of absence

shall be in the sole discretion of the Company and shall be without pay or any other form of

compensation. The employee shall not work with any other employer in any other position

-- 16 --

' I •

during such leave of absence unless agreed to by the Company in writing.

15.02 Pregnancy, parental and adoption leave shall be in accordance with the Ontario

Employment Standards Act. 2000.

15.03 The Company may grant a leave of absence, without pay or loss of seniority, to

not more than two (2) delegated Union members to attend Union conventions or conferences

where the Company is given reasonable notice and where the absence of such employees will not

interfere with production. The Company shall not unreasonably deny such requests.

No person granted a leave of absence pursuant to this Article shall be absent for

more than one (I) week at any given time nor shall any person granted leave under this Article

be granted more than an aggregate of four (4) weeks' leave per calendar year.

15.04 The Company agrees to continue the pay of any employee absent from work on

Union business and the Union shall reimburse the Company for such wage payment upon receipt

of a monthly statement. Such leave of absence shall be authorized in writing by the Union.

ARTICLE 16- MEDICAL ABSENCES

16.01 Employees are expected to attend work regularly. When an employee is unable to

do so, the following procedure shall be followed:

(a) the employee contacts the Plant Manager or his designate as soon as possible;

(b) the employee tells the Plant Manager or his designate that he/she is unable to attend

work, the reason for the absence and the expected date of return;

(c) the employee may be required by the Company to substantiate the reasons for any

absence.

16.02 The Company may, upon reasonable grounds, require a medical examination of

any employee, by an independent physician, which will be made at the Company's expense. A

report thereof will be furnished to the personal physician of the employee, upon written request

of the employee and his physician.

-- 17 --

ARTICLE 17- BULLETIN BOARDS

17.01 The Company shall make available a bulletin board for the purpose of posting

notices regarding meetings and other similar Union matters. Notices shall not be posted unless

signed by a Union officer and approved by the General Manager or his designate prior to

posting.

ARTICLE 18- JURY DUTY

18.01 A seniority employee called for jury duty or subpoenaed as a Crown witness shall

receive for each day absent from regularly scheduled working hours, the difference between

regular pay lost and the amount of jury fee or Crown witness fee received (jury fee or Crown

witness fee does not include any amount provided for mileage or meals), provided the employee

furnishes the Company with a Certificate of Service signed by the Clerk of the Court showing

the amount of any fee received. On such days, the employee must work regularly scheduled

hours that remain possible as a result of when such jury duty or Crown witness duty starts or

finishes. The employee shall call his Supervisor to ascertain whether it is necessary to report for

work.

Employees who are on afternoon shift shall not be required to report for the

afternoon shift if the jury duty or Crown witness duty requires the employee to remain at the

courthouse past 12 noon. If such employee is required to remain at the courthouse past 12 noon,

he shall, as soon as practicable, contact the Plant Manager to advise of his unavailability for the

afternoon shift.

ARTICLE 19 - BEREAVEMENT LEAVE

19.01 (a) In the event of a death in a seniority employee's immediate family, the seniority

employee will be granted up to three (3) consecutive days leave of absence commencing with the

-- 18--

date of death and concluding with the day following the funeral. Such leave shall be without loss

of pay from regular earnings. The seniority employee's immediate family shall mean: spouse,

mother, father, grandmother, grandfather, brother, sister, step brother, step sister, son, daughter,

step son or step daughter.

(b) In the event of the death of a seniority employee's mother-in-law, father-in-law,

grandparent-in-law, brother-in-law, sister-in-law, son-in-law or daughter-in-law, leave up to one

(l) day shall be granted without loss of regular earnings.

(c) The Company will grant additional unpaid bereavement leave to employees in an

appropriate case.

ARTICLE 20 -HEALTH AND SAFETY

20.01 The Company shall maintain an Occupational Health and Safety Committee

consisting of not more than two (2) members elected or appointed by the Union and not more

than two (2) members appointed by the Company.

20.02 The general duties of the Occupational Health and Safety Committee shall be:

(a) to make a monthly inspection of the plant or place of employment for the purpose of

determining hazardous conditions, to check unsafe practices and to receive complaints and

recommendations with respect to these matters.

(b) to investigate promptly all serious accidents and any unsafe conditions or practices which

may be reported to it. Such investigations shall include accidents that might have caused injury

to a worker, whether or not such injury occurred.

(c) to hold regular meetings at least monthly for the discussion of current accidents, their

causes, suggested means of preventing their recurrence, and reports of investigations and

inspections.

(d) to keep records of all investigations, inspections and written complaints, together with

minutes of meetings.

-- 19 --

(e) The designated Certified Joint Health and Safety Committee worker representative shall

have the right to accompany all authorized Safety Inspectors on tours of the premises and shall

receive copies of any reports sent to the Company pertaining to such inspections.

(t) Accident, injury and occupational illness records shall be kept by the Company, and shall

be made available to the joint Occupational Health and Safety Committee. These records shall

include all reports required by the Ministry of Labour under the Occupational Health and Safety

Act. The Company also agrees to make available to the Committee upon request, the trade name

and/or technical description (including chemical analysis, if available) of any compounds and

substances used in the plant.

(g) Employees have the right to refuse to perform unsafe work in accordance with the

Occupational Health and Safety Act, as amended from time to time. No employee shall be

penalized for exercising this right.

20.03 (a) The Company will continue its current practice of supplying protective equipment

which is necessary to protect employees from injuries arising from their employment with the

Company.

(b) The Company agrees to contribute up to one hundred and fifteen dollars

($115.00) per seniority employee per year towards the purchase of safety shoes upon

presentation of a receipt by the seniority employee. The wearing of safety shoes by all

employees within the bargaining unit shall be compulsory.

(c) Where the temperature reaches 100 degrees Fahrenheit or more, employees may

elect to leave work. Where employees do elect to leave work under such conditions, they shall

not be paid for any time not worked.

-- 20 --

ARTICLE 21 -PLANT HOLIDAYS

21.01 The following days shall be observed as designated holidays: New Year's Day Victoria Day Civic Holiday Thanksgiving Day Boxing Day Good Friday Canada Day Labour Day Christmas Day

21.02 In order to qualify for holiday pay, the employee must:

(a) have performed work for the Company in twelve (12) of the last thirty (30) days prior to

the holiday,

(b) have worked his full scheduled hours of work on his work day immediately preceding

and immediately following the holiday, and

(c) have completed three (3) months of continuous active employment with the Company.

Where a holiday falls during any absence unpaid by the Company, including

Workers' Compensation, the employee shall not receive holiday pay.

21.03 Holiday pay shall be computed on the basis of the number of hours the employee

would otherwise have worked had there been no holiday, at the employee's regular straight time

hourly rate of pay.

21.04 An employee who works on any of the holidays listed in Article 21.01 hereof

shall be paid for each such hour worked on such holiday at the rate of two (2) times his regular

rate of pay, and in addition shall receive the holiday pay provided herein, if he meets the

eligibility requirements contained in Article 21.02.

21.05 Employees with one (1) year or more of continuous service shall receive one (1)

day off with regular pay on their birthday. Where their birthday falls on a Saturday or Sunday,

the employee will receive the next working day off with regular pay.

In order to receive their birthday off with regular pay, the employee must also

--21 --

meet the qualifying requirements in Article 21.02(a) and (b).

21.06 If an employee who is otherwise disqualified under this Article from receiving

holiday pay or premium pay has a right to receive public holiday pay or premium pay under the

Ontario Employment Standards Act, 2000, as amended, the employee shall receive such public

holiday pay and/or premium pay as are required by that Act.

21.07 If a holiday listed in Article 21.01 falls on a Saturday or Sunday, the following

Monday or Tuesday, as determined by the Employer, shall be substituted.

ARTICLE 22- VACATIONS

22.01 All allotted vacation time must be taken during the year of vacation entitlement.

Pay in lieu of vacation is not allowed.

22.02 The vacation year shall run from July 1st to June 30th of each year. A vacation

planning chart will be posted by the Company at least three (3) months prior to the

commencement of the vacation year.

22.03 Qualifying employees shall fill in their request for their vacation period(s) on the

vacation request form. Employees entitled to more than two (2) weeks vacation shall not be

entitled to take more than two (2) weeks at any one time without the permission of the Company.

22.04 Qualifying employees shall fill in their vacation request within two (2) weeks of

the vacation planning chart being posted. Where an employee requests a specific vacation, the

Company shall confirm or deny, in writing, such request within two (2) weeks of receipt of the

request.

22.05 Where conflicts arise as to the choice of vacation periods, employees with the

greatest seniority will be given preference, subject to Article 22.06.

22.06 All requests for specific vacation periods will be considered by the Company

having regard to the operational needs of the Company. The Company shall be the final

determiner of the vacation schedule.

-- 22 --

22.07 Notwithstanding anything to the contrary contained within this Article, the

Company has the right to schedule vacation periods where, in the opinion of the Company, such

scheduling is necessary to meet the Company's operational needs. For example, the Company

may require employees to take vacation during the last two (2) weeks of July or the first two (2)

weeks of August.

22.08 Seniority employees shall be entitled to annual vacation pursuant to the following

schedule based on their completed years of service as at June 30th in each year:

(a) Employees with less than one (I) year's service as of June 30th will receive one (1) day's

vacation (up to a maximum often (10) days) for each completed month of service prior to June

30th, and will receive vacation pay of four percent (4%) of the employee's regular earnings for

the year ending June 30th;

(b) Two (2) weeks' vacation after one (1) year of service as at June 30th. Vacation pay will

be four percent (4%) of the employee's regular earnings for the year ending June 30th;

(c) Three (3) weeks' vacation after five (5) years or more of service as at June 30th. Vacation

pay will be six percent (6%) of the employee's regular earnings for the year ending June 301h.

(d) Four (4) weeks' vacation after eleven (11) years or more of service as at June 30th.

Vacation pay will be eight percent (8%) of the employee's regular earnings for the year ending

June 301h.

22.09 For the purposes ofthis Agreement, "regular earnings" does not include vacation

pay.

ARTICLE 23 - HOURS OF WORK

23.01 This Article only provides a basis for the calculation of time worked and shall not

be construed as a guarantee of the hours of work in a day or a week, or a guarantee of days of

work or otherwise, nor is it a guarantee of working schedules.

-- 23

23.02

Day Shift

Night Shift

23.03 (a)

The current shift schedule is as follows:

Monday to Thursday

Friday

Monday to Thursday

7:00 a.m. to 4:30p.m.

7:00 a.m. to 11:00 a.m.

4:30p.m. to 3:00a.m.

Employees will continue to receive a ten (1 0) minute paid break during each half

(12) shift worked. The Company will continue to attempt to schedule such break at the midway

point of the half shift.

(b) Where the Company is operating on either a one (1) or two (2) shift schedule, the

Company will continue its current practice of providing one-half (12) hour unpaid lunch periods.

23.04 Employees will be permitted a five (5) minute wash-up period at the end of each

full shift worked.

23.05 (a) Overtime at the rate of time and one-half(112) will be paid for all work performed

in excess of forty ( 40) hours in a week. There shall be no pyramiding or compounding of

overtime and/or other premiums.

(b) The Company will distribute overtime equitably among employees who regularly

perform the work. For greater clarity, overtime work that relates to a particular machine shall

first be offered to employees who regularly operate that machine. The Company shall not be

required to offer overtime work to an employee who is absent from work when the overtime

work is being arranged. An employee who agrees, refuses or is assigned to perform overtime

work shall have the hours of that overtime assignment count towards his total overtime hours for

the purposes of overtime distribution. The Company shall maintain records of overtime

distribution, which shall be available for review by the Union and shall be posted in the

workplace. At the beginning of every month, total overtime hours worked, or deemed to have

been worked, by each employee shall be reset to zero for purposes of distribution and this

Article.

(c) The Company shall endeavour to give notice of overtime work assignments to

-- 24 --

employees affected as early as possible.

23.06 The Company will normally attempt to meet its overtime requirements on a

voluntary basis; however, should the Company be unable to secure enough volunteers who are,

in the Company's opinion, qualified to perform the work required, the Company has the right to

require qualified employees in inverse order of seniority to perform such overtime work.

23.07 In the event that an employee reports for work on his regular shift, without having

been notified prior to the end of his previous shift not to report, he will be given at least four ( 4)

hours work at his regular rate of pay or, if no work is available, he will be paid the equivalent of

four ( 4) hours at his regular rate of pay in lieu of work. This provision shall not apply when

there is a lack ofwork due to a situation beyond the control of the Company.

23.08 (a) Employees scheduled to work night shift shall receive a night shift premium of

fifty cents (50¢) per hour for each hour worked on night shift.

(b) Employees with more than three (3) years' service who are scheduled to work

night shift shall receive a night shift premium of one dollar ($1.00) per hour for each hour

worked on night shift.

(c) Night shift premiums shall not apply to day shift employees who work past their

regular hours.

ARTICLE 24 - WAGES

24.01 The Company agrees to pay the wages set out in Schedule "A" during the first

year of the Agreement, the wages set out in Schedule "B" during the second year of the

Agreement, and the wages set out in Schedule "C" during the third year of the Agreement.

ARTICLE 25 -BENEFITS

25.01 Notwithstanding anything to the contrary contained in this Agreement, or in the

benefit plan or contract, with regard to the coverage provided, such benefits and plans are

-- 25 --

qualified in their entirety by reference to the underlying policies and/or contracts of insurance.

The term of any policy and/or contract of insurance issued in respect hereof shall be controlling

in all matters pertaining to qualifications of employees for benefits thereunder and in all matters

pertaining to the existence and extent of benefits and conditions. The decision of the insurance

company will be final and binding upon the parties hereto and upon any employee affected

thereby.

25.02 The Company's only obligation hereunder is to pay, on behalf of a bargaining unit

employee who has three (3) months continuous employment with the Company, and who

qualifies for coverage, one hundred percent (100%) of the premium cost of the existing benefit

plan.

25.03 The benefit plan provided by the Company includes:

(1) Life Insurance- Employee: $35,000 (minimum); dependent spouse: $15,000; dependent

child: $10,000.

(2) A D. & D.- $35,000 (minimum)

(3) Health care benefits

(4) Dental care benefits

(5) Vision care benefits of $250 per year for eligible children under the age of eighteen and

$250 every two years for eligible adults eighteen years and older (eligibility and coverage to be

determined with reference to the insurance plan). Coverage for yearly eye examinations for all

immediate family members.

(6) A drug card with no deductible

The details of the plan are contained in the benefit booklet that has been provided

to employees.

25.04 Where employees are temporarily absent (i.e., sickness, temporary lay-off) benefit

coverage will be extended to the end of the seventh (71h) policy month following the month in

which such absence began.

-- 26 --

• 25.05 The Company will continue the current pension plan. In addition, in each

calendar year, the Company will match an eligible employee's contribution to a structured

retirement savings plan provided by the Employer, up to a maximum of 1.5% of base earnings.

. In this Agreement the term "base earnings" has the same definition as "regular earnings", and

for the sake of clarity, base earnings excludes vacation pay, overtime pay and any discretionary

or gratuitous payments made by the Company to the employee. The details of the plan,

including eligibility requirements, are set out in the booklet that has been provided to employees.

25.06 Commencing January 1, 2006, the Company will reimburse employees for the

cost of up to three (3) doctor's notes per employee per calendar year, up to a maximum of$20.00

per note, if such note was requested by the Company.

ARTICLE 26- WAIVER

26.01 This Agreement constitutes the entire Collective Agreement between the parties

and concludes collective bargaining for its term and can only be amended as supplemented by

mutual agreement of both parties.

ARTICLE 27- DURATION

27.01 This Agreement shall become effective on the 24th day ofNovember, 2005 and

shall remain in full force and effect and shall not be reopenable, save and except as otherwise

herein expressly provided, until midnight of the 23rd day ofNovember, 2008 and shall continue

automatically thereafter during annual periods of one (1) year each, unless either party notifies

the other party in writing as provided for in Article 27.02 hereof of its desire to negotiate

amendments to this Agreement.

27.02 Notice that amendments are required shall only be given during the period of not

more than ninety (90) days prior to the 23rd day of November, 2008 or during similar annual

periods thereafter. If notice of desire to amend this Agreement is given by either party in

-- 27 --

accordance with the foregoing, the other party agrees to meet for the purpose of negotiation.

DULY EXECUTED AT fv\f\<\l~cx~ ONTARIO THIS~~DAY OF fv\.c.r-J._ , 2006.

F~UNION:

·~

-- 28 --

SCHEDULE "A"

CLASSIFICATIONS AND WAGE RATES

CLASSIFICATION STARTING RATE JOB RATE AFTER 2MONTHS

IN CLASSIFICATION

Material Handler -Shipper/Receiver $13.55 $14.05 Straight & Cut Machines (4,1,2,9,10) $13.05 $13.55 Forming Operator $13.95 $14.45

~~ Block, Single Holder and #7 Straight Cut) $13.55 $14.05 Draw Machine St

Cut $14.05 $14.55 Multiholer $14.45 $14.95 Lewis #8 Draw Straight & Cut $14.45 $14.95 Draw Machine #5 Straight & Cut $15.20 $15.70 Casual Labour (Cleaner, Helper) $12.45 $12.95 Truck Driver "D" Licence Required $15.45 $15.95 "AZ" Licence Required $16.70 $17.20 Lead Hand Wire Draw $15.95 $16.45 Shipper/Receiver $16.95 $17.45 Lead Hand - Straight & Cut Machines

$15.95 $16.45

-- 29 --

GENERAL MAINTENANCE MECHANIC

STARTING RATE JOB RATE AFfER JOB RATE AFTER 6MONTHS 1 YEAR

IN CLASSIFICATION IN CLASSIFICATION

$20.95 $21.45 $21.95

MACHINIST

STARTING RATE JOB RATE AFTER JOB RATE AFTER 6MONTHS 1 YEAR

IN CLASSIFICATION IN CLASSIFICATION

$22.25 $22.75 $23.25

MILLWRIGHT

STARTING RATE JOBRATEAFfER JOB RATE AFTER 6MONTHS 1 YEAR

IN CLASSIFICATION IN CLASSIFICATION

$23.75 $24.50 $25.50

Note: It is acknowledged that Harrichand Deonarine shall continue to receive the rate that he currently receives, plus annual increases of $0.50, $0.50 and $0.50, in Years 1, 2 and 3 respectively.

For the sake of clarity, employees who have completed probation and transfer from one classification to another shall go to the job rate immediately upon transfer (a transfer lasting one shift or more, as defined in Article 14.01(c) of the Collective Agreement).

-- 30 --

SCHEDULE "B"

CLASSIFICATIONS AND WAGE RATES

CLASSIFICATION STARTING RATE JOB RATE AFTER 2MONTHS

IN CLASSIFICATION

Material Handler -Shipper/Receiver $14.05 $14.55 Straight & Cut Machines (4,1,2,9,10) $13.55 $14.05 Forming Operator $14.45 $14.95 Bull Block, Single Holder (#6 and #7 Straight Cut) $14.05 $14.55 # 3 Draw Machine Straight Cut $14.55 $15.05 Multiholer $14.95 $15.45 Lewis #8 Draw Straight & Cut $14.95 $15.45 Draw Machine #5 Straight & Cut $15.70 $16.20 Casual Labour (Cleaner, Helper) $12.95 $13.45 Truck Driver "D" Licence Required $15.95 $16.45 "AZ" Licence Required $17.20 $17.70 Lead Hand Wire Draw

$16.45 $16.95 Shipper/Receiver $17.45 $17.95 Lead Hand - Straight & Cut Machines

$16.45 $16.95

-- 31 --

GENERAL MAINTENANCE MECHANIC

STARTING RATE JOB RATE AFTER JOB RATE AFTER 6MONTHS 1 YEAR

IN CLASSIFICATION IN CLASSIFICATION

$21.45 $21.95 $22.45

MACHINIST

STARTING RATE JOB RATE AFTER JOB RATE AFTER 6MONTHS 1YEAR

IN CLASSIFICATION IN CLASSIFICATION

$22.75 $23.25 $23.75

MILLWRIGHT

STARTING RATE JOB RATE AFTER JOB RATE AFTER 6MONTHS 1 YEAR

IN CLASSIFICATION IN CLASSIFICATION

$24.25 $25.00 $26.00

Note: It is acknowledged that Harrichand Deonarine shall continue to receive the rate that he currently receives, plus annual increases of$0.50, $0.50 and $0.50, in Years 1, 2 and 3 respectively.

For the sake of clarity, employees who have completed probation and transfer from one classification to another shall go to the job rate immediately upon transfer (a transfer lasting one shift or more, as defined in Article 14.01(c) of the Collective Agreement).

-- 32 --

t t, l 1

SCHEDULE "C"

CLASSIFICATIONS AND WAGE RATES

CLASSIFICATION STARTING RATE JOB RATE AFTER 2MONTHS

IN CLASSIFICATION

Material Handler -Shipper/Receiver $14.55 $15.05 Straight & Cut Machines (4,1,2,9,10) $14.05 $14.55 Forming Operator $14.95 $15.45 Bull Block, Single Holder (#6 and #7 Straight Cut) $14.55 $15.05 # 3 Draw Machine Straight Cut $15.05 $15.55 Multiholer $15.45 $15.95 Lewis #8 Draw Straight & Cut $15.45 $15.95 Draw Machine #5 Straight & Cut $16.20 $16.70 Casual Labour (Cleaner, Helper) $13.45 $13.95 Truck Driver "D" Licence Required $16.45 $16.95 "AZ" Licence Required $17.70 $18.20 Lead Hand Wire Draw $16.95 $17.45 Shipper/Receiver $17.95 $18.45 Lead Hand- Straight & Cut Machines

$16.95 $17.45

-- 33 --

' .. ' I

GENERAL MAINTENANCE MECHANIC

STARTING RATE JOB RATE AFTER JOB RATE AFTER 6MONTHS 1 YEAR

IN CLASSIFICATION IN CLASSIFICATION

$21.95 $22.45 $22.95

MACHINIST

STARTING RATE JOB RATE AFTER JOB RATE AFTER 6MONTHS 1 YEAR

IN CLASSIFICATION IN CLASSIFICATION

$23.25 $23.75 $24.25

MILLWRIGHT

STARTING RATE JOB RATE AFTER JOB RATE AFTER 6MONTHS 1 YEAR

IN CLASSIFICATION IN CLASSIFICATION

$24.75 $25.50 $26.50

Note: It is acknowledged that Harrichand Deonarine shall continue to receive the rate that he currently receives, plus annual increases of $0.50, $0.50 and $0.50, in Years 1, 2 and 3 respectively.

For the sake of clarity, employees who have completed probation and transfer from one classification to another shall go to the job rate immediately upon transfer (a transfer lasting one shift or more, as defined in Article 14.0l(c) ofthe Collective Agreement).

-- 34 --

,. I

,• ,. '

LETTER OF UNDERSTANDING No. 1

BETWEEN:

INDWISCO LIMITED

(the "Company")

-and-

UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL

UNION (UNITED STEEL WORKERS)

(the "Union")

The Company acknowledges that its practice of making payments to employees under the Monthly Award Plan and the Profit Sharing and Performance Plan, while not part of the Collective Agreement, has constituted an important part of its employees' income. Without altering the discretionary and gratuitous nature of these payments, the Company states that it has no present intention of changing the basis upon which it makes these payments during the life of the Collective Agreement. This Letter of Understanding is entered into in the utmost good faith and sincerity. The Union acknowledges that the Company shall not be required to disclose confidential financial information.

DULY EXECUTED AT·f'ttAr~k~, ONTARIO THIS1n~ DAY OF ~ ,2006.

-- 35 --

,.. ' . ~ ,. .

LETTER OF UNDERSTANDING No.2

BETWEEN:

INDWISCO LIMITED

(the "Company")

-and-

UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL

UNION (UNITED STEEL WORKERS)

(the "Union")

1. Re: Four-day shiftsThe Company will implement a four-day day shift, Monday to Thursday, on a trial basis, commencing the week of February 6, 2006.

2. The hours of the four-day day shift will be from 6:00 a.m. to 4:30 p.m. Day shift employees will receive two 1 0-minute breaks and one thirty-minute meal period each day.

3. It is understood that the Company will require certain positions to work on Fridays, for example day shift shipping and receiving. The hours of the day shift employees who work Fridays will be:

Monday to Thursday Friday

7:00 a.m. to 4:30p.m. 7:00a.m. to 11:00 a.m.

4. While the Company continues to schedule a four-day work week, public holiday pay shall be 10 hours' regular wages for all eligible seniority employees. It is acknowledged that public holiday pay does not count toward overtime entitlement.

5. If a public holiday falls on a Friday, then:

(a) An employee who is regularly scheduled to work Monday to Thursday shall:

(i) Work his or her full regularly scheduled shift immediately preceding the holiday; and

-- 36 --

, ' ~ ' rll t • •

(ii) Receive a substituted day off as the public holiday, which will normally be the next scheduled working day after the holiday.

(b) An employee who is regularly scheduled to work on Fridays will have the Friday off with holiday pay, unless he or she is requested to work and agrees to work on such holiday, in which case the provisions of article 21.04 will apply.

6. The Company will provide at least six (6) weeks' notice of any decision to revert to a five-day workweek or otherwise substantially change regular hours of work.

7. This shall not be construed as a guarantee of the hours of work in a day or a week, or a guarantee of days of work or otherwise, nor is it a guarantee of working schedules.

DULY EXECUTED AT Mr¥\~NTARIO THIS ?_,..\.DAY OF f\1\c.c-~ , 2006.

FOR THE UNION:

q;;¥1

-- 37