I COLLECTIVE BARGAINING ; INFORMATION . EMPLOYEE HANDBOOK Fabricatio… · sep 2 0 2002 collective bargaining ; information . 11 1 erf~ -1.{'-/ • qo-r: , d~v/ d;). employee handbook

I I I I I I I I I I I I I I I ., I I I

CLA-VAL CANADA -TED • OFFICE OF

SEP 2 0 2002 COLLECTIVE BARGAINING ;

INFORMATION .

11 1 erf~ - 1.{'-/ •

Qo-r: , D~V/ D;).

EMPLOYEE HANDBOOK

CLA-VAL CANADA, LIMITED 4687 CHRISTIE DRIVE

BEAMSVILLE, ON LOR 1 84

FILENo.

CERT. FILE

CERT.DATE

TOTAL EMPS LJ LJ

EFF. DATED~--&- o l

EXP. DATE t'Jou COOING CONTROL DATE CODER

Issued: August 20, 2001 ~DENT CODED

I I I I I I I I .I I I I I I I I I I I

CLA-VAL CANADA L.ED

Table of Contents

I. IN"fRODUCTION ............................................................................................ 1

A. WELCC{)ME STATEMENT ......................................................................... 1

B. HISTORY AND ORGANIZATION .............................................................. 2

C. DESCRIPTION OF HANDBOOK ............................................................... 3

II. EMPLOYMENT RELATIONSHIP ................................................................... .4

Ill. COMMENCING EMPLOYMENT .................................................................... 5

A. EMPLOYMENT QUALIFICATIONS ........................................................... 5

B. EMPLOYMENT STATUS .......................................................................... 5

C. INTRODUCTORY/PROBATIONARY PERIOD .................................... , ..... 6

D. JOB DUTIES ............................................................................................. 6

IV. PAYROLL ....................................................................................................... 7

A. WORKING HOURS & SCHEDULE ........................................................... 7

B. TIMEKEEPING PROCEDURES ................................................................ 7

C. OVERTIME ............................................................................................... 8

D. PAYMENT OF WAGES ............................................................................. 9

E. REPORTING/SHOW-UP/EMERGENCY COMPENSATION ..................... 9

F. DISCRETIONARY BONUSES ........... : ....................................................... 9

G. SALARY PAY POLICY .............................................................................. 9

H. AUTOMATIC DEPOSIT .......................................................................... 10

I. WAGE GARNISHMENTS ........................................................................ 10

I I I I .I I I I I I ,, I I I I I I I I

CLA-VAL CANADA LI.ED

J. BUSINESS EXPENSE REIMBURSEMENT ............................................ 10

K. PAYROLL TAX DEDUCTIONS ............................................................... 1 0

V. PERSONNEL ............................................................................................... 12

A. OPEN-DOOR POLICY AND COMPLAINT (GRIEVANCE) PROCEDURE12

B. COMPANY DISCIPLINARY PROCEDURE ............................................. 12

C. WORKPLACE DISCRIMINATION AND HARASSMENT ......................... 13

D. PROHIBITED CONDUCT ........................................................................ 16

E. CONDUCT & EMPLOYMENT OUTSIDE WORK .................................... 18

F. DRUG & ALCOHOL ABUSE ................................................................... 18

G. PUNCTUALITY & ATTENDANCE ........................................................... 19

H. PROMOTIONS AND TRANSFERS ......................................................... 19

I. CONFIDENTIALITY/TRADE SECRETS .................................................. 20

VI. CLA-VAL CANADA FACILITIES ................................................................... 21

A. POLICIES AGAINST WORKPLACE VIOLENCE ..................................... 21

B. OPERATION OF VEHICLES ................................................................... 22

C. USE .OF EQUIPMENT ............................................................................. 23

D. USE OF TECHNOLOGY AND THE INTERNET ...................................... 23

E. USE OF STATIONERY & MAIL SERVICES ............................................ 26

F. EMPLOYEE PROPERTY ........................................................................ 27

G. VISITORS ................................................................................................ 27

H. SECURITY .............................................................................................. 27

I. SOLICITATION & DISTRIBUTION OF LITERATURE ............................. 27

ii

; I

II

I I I ,, 1.

I

I! i

1: I

' I! I J! I I I I I ~I

I I

CLA-VAL CANADA uA~o-----------------

J. EMPLOYEE PARKING ............................................................................ 27

K. BULLETIN BOARDS ............................................................................... 28

L. TELEPHONES ........................................................................................ 28

M. HOUSEKEEPING .................................................................................... 28

N. SMOKING POLICY ................................................................................. 28

0. HEALTH&SAFETY ................................................................................ 28

P. POLICY REGARDING VIOLENT CRIME ................................................ 30

VII. BENEFITS .............................................................................................. 31

A. PUBLIC HOLIDAYS ................................................................................ 31

B. VACATIONS ..................................... : ..................................................... 31

C. SICK LEAVE ........................................................................................... 32

D. INSURANCE BENEFITS ......................................................................... 33

E. LEAVES OF ABSENCE ........ · .................................................................. 34

F. EDUCATIONAL ASSISTANCE/TUITION REIMBURSEMENT ................ 37

G. COMPANY PENSION PLAN ............................................................... · .... 37

VIII. TERMINATION ....................................................................................... 39

A VOLUNTARY TERMINATIONS ............................................................... 39

B. INVOLUNTARY TERMINATIONS ........................................................... 39

C. REDUCTIONS IN FORCE ....................................................................... 39

IX. GENERAL INFORMATION ........................................................................... 41

A. NON-UNION STATUS ................................. ; ......... ~ ................................ 41

B. DRESS STANDARDS AND PERSONAL GROOMING ........................... 41 iii

II

I I I;

I I I

I[ I

I

a: I I I I I' I I I I I I I

CLA-VAL CANADA u&o e· C. CHANGE OF EMPLOYEE INFORMATION ............................................. 41

X. CONCLUSION .............................................................................................. 42

Handbook Acknowledgment & Agreement

iv

I I I I I I I I I I I I I I I I I I I I

I

I

. I

CLA-VAL CANADA LIAD

I. INTRODUCTION

A. WELCOME STATEMENT

Congratulations and thank you for accepting Cla-Val Canada's offer of employment. One of the keys to our success as a company is hiring good Employees. We have hired you because we believe you have the skills and the potential to help Cla-Val Canada succeed. We expect and depend upon you and each Employee to perform the tasks assigned to you to the best of your abilities. We believe that hard work and commitment will not only help us succeed, but will help give you a sense of pride and accomplishment.

We are glad to have you as a member of the Cla-Val Canada team. We hope that your employment proves mutually satisfying and that you will make an important contribution to our future. Every Employee has an important role in our operations and we value the abilities, experience and background that you bring with you to our company. It is our Employees who provide the services that our customers rely upon and enable us to grow and create new opportunities in the years to come.

Our management team intends to provide you with all of the support and the resources you will need to perform your job effectively. If, at any time, you need assistance or guidance, please do not hesitate to ask any of the members of our management team. They are here to help you perform to the best of your abilities.

Once again, welcome to Cla-Val Canada. We are glad to have you with us.

Fred Horton General Manager

Issued: August 20, 2001

1

I I I I I I I I I I I I I I I I I I I

CLA-VAL CANADA LI.D

B. HISTORY AND ORGANIZATION

Griswold Industries originated as Cla-Val in South Pasadena, California in 1936 with five employees, and in 1948 moved to larger quarters in Alhambra, California. As new products were developed, larger facilities were again required, and in 1954 a 20-acre site was purchased in Costa Mesa, California. Construction began on the buildings which presently house Cla-Val, Soundcast Co. and Griswold Castings. In 1979, thirty acres were purchased in Perris, California, and ground was broken in preparation for the buildings presently housing a machine shop.

In 1963, a Cla-Val manufacturing facility was established in St. Catharines, Ontario, Canada, and in 1980 the facility was moved to Beamsville, Ontario, Canada, fifteen miles from St. Catharines. Cla-Val Canada consists of 65,000 square feet with a full manufacturing facility including a hightech fully automated machine shop. In 1994, Cla-Val Canada received ISO 9002 certification.

Cla-Val SA was established in Lausanne, Switzerland in 1983 as the European sales office. In 1986, the manufacturing operation was consolidated with the sales offices in a new building near Lausanne, Switzerland. From this facility, Cla-Val S.A. serves the European markets as well as the Middle East.

In 1996 Aztec Engineering located in southeast London in the United Kingdom was acquired. Aztec Engineering brings technology in a field of pressure management & l,eakage control of old pipelines.

In January 1998 Cla-Val acquired Roll Seal Valve Company in Temecula, California. Roll Seal valves are automatic control valves that have a unique and different operating principle than traditional Cla-Val control valves.

In 2000, we acquired Dumoulin SARL in Lyon, France, a long-time distributor of Cla-Val products. Dumoulin SARL serves the French waterworks market.

For over 60 years we have been providing safety, convenience and comfort to millions of people all over the world. During these years, numerous applications of our product have been designed and developed for use in many industries. Future years promise unlimited possibilities for Cla-Val Canada in areas as yet undeveloped, as well as continued success and expansion in the fields we already serve.

The Company has continually striven to make the highest quality products in their respective fields, to maintain high standards of business ethics, and to provide the best working conditions possible for all its employees.


2



C. DESCRIPTION OF HANDBOOK

This Employee Handbook contains information about the employment policies and practices of Cla-Val Canada ("the Company"). We expect each Employee to read this Employee Handbook carefully, as it is a valuable reference for understanding your job and the Company. This Employee Handbook supersedes all previously issued Employee Handbooks and inconsistent verbal or written policy statements. The Company reserves the right to revise, delete and add to the provisions of this Employee Handbook. All such revisions, deletions, or additions must be in writing and must be signed by the Human Resources Manager or the General Manager of the Company. No oral statements or representations can change the provisions of this Employee Handbook.

None of the Company's personnel documents and benefit plans, including this Employee Handbook, constitutes, or is intended to constitute, an express or implied contract guaranteeing continued employment for any Employee. This Employee Handbook is the property of Cla-Val Canada. All rights are reserved. No part of this Employee Handbook may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the Human Resources Manager.

Not all Cla-Val Canada policies and procedures are set forth in this Employee Handbook. We have summarized only some of the more important ones. If you have any questions or concerns about this Employee Handbook or any other policy or procedure, please ask your Supervisor or Department Manager or the Human Resources Manager.


3


CLA-VAL CANADA u&o

II. EMPLOYMENT RELATIONSHIP

The Employee or the Company may terminate employment at the Company for any reason, with or without cause or notice, at any time subject only to the statutory notice and/or severance obligations prescribed by the Employment Standards Act, as amended. Nothing in this Employee Handbook or in any oral or written statement shalt limit the Company's right to terminate employment without further statutory, contractual or other legal obligation

The terms and conditions of employment with the Company may be modified at the sole discretion of the Company with or without cause or notice at any time. No implied contract concerning any employment-related decision or term or condition of employment can be established by any other statement, conduct, policy, or practice. Examples of the types of terms and conditions of employment that are within the sole discretion of the Company include, but are not limited to, the following: promotion; demotion; transfers; hiring decisions; compensation; benefits; qualifications; discipline; layoff or recall; rules; hours and schedules; work assignments; job duties and responsibilities; production standards; subcontracting; reduction, cessation, or expansion of operations; sale, relocation, merger, or consolidation of operations; determinations concerning the use of equipment, methods, or facilities; or any other terms and conditions that the Company may determine to be necessary for the safe, efficient, and economic operation of its business.


4


CLA-VAL CANADA LI.D

Ill. COMMENCING EMPLOYMENT

A. EMPLOYMENT QUALIFICATIONS

Employment at Cla-Val Canada is based solely upon qualifications and merit. We seek to employ persons who can work harmoniously with others and perform their assigned tasks efficiently.

The nature of our work requires all employees to be a minimum of 15 years of age in accordance with government regulations.

As an employee of Cla-Val Canada, you are considered a most valuable asset and resource. You will be treated with dignity an<;i respect. Your growth is limited only by your own ambitions, in accordance with your education and qualifications and your day-to-day job performance.

B. EMPLOYMENT STATUS Employees at Cla-Val Canada are classified into the following categories:

1. Full-Time Nonexempt Employees

Full-time nonexempt Employees are those who are normally scheduled to work and who do work a schedule of 28 or more hours per week.

· 2. Part-Time Nonexempt Employees

Part-time nonexempt Employees a~ those who are scheduled to and do work less than 28 hours per week. Part-time nonexempt Employees may be assigned a work schedule in advance or may work on an as-needed basis.

3. Exempt Employees

Exempt Employees are those whose job assignments meet the provincial requirements for overtime exemption. Exempt Employees are compensated on a salary basis and are not eligible for overtime pay. Generally, managerial, professional, supervisory and certain outside sales Employees are overtime exempt. You will be advised upon hire or transfer if your status is exempt.

4. Interns

Individuals serving a paid or unpaid internship to meet educational certification requirements.

5. Rehired Employees

Employees who have previously been employed by the Company and are hired again will be treated as new hires. Eligibility for any and all benefits will be same as a new hire.

6. Reinstated Employees

Employees who are recalled to work from layoff will be reinstated. Reinstated employees will be eligible for all Company benefits immediately upon the date of reinstatement. Reinstated employees will retain the hire/seniority date they had prior to their layoff.


5


CLA-VAL CANADA Ll&o

C. INTRODUCTORY/PROBATIONARY PERIOD

The first 90 days of continuous employment at Cla-Val Canada will no doubt be a learning experience. You will learn your job duties and responsibilities, get acquainted with your Supervisor or Department Manager(s) and fellow Employees, and familiarize yourself with the Company in general. We refer to this initial period of employment as your introductory/probationary period. This period will allow your supervisor to determine the ability with which you perform the job duties and it also allows you the opportunity to determine If you are satisfied with the position.

Employment may be terminated at any time during an employee's introductory/probationary period for any reason, in the sole discretion of the Company, without further obligation to you.

While we understand that you will be learning a lot about your new job, you are still expected to perform satisfactorily and your overall performance and attendance will be reviewed during your introductory/probationary period. Also, please understand that completion of the introductory period does not guarantee continued employment and does not change the Company's subsequent right to terminate the relationship.

The probationary period may be extended beyond 90 days at the Company's discretion. After successful completion of the probationary period, the employee's seniority will be established according to the initial date of employment. The Company shall maintain a current seniority list for the plant, which shall be posted in the plant and also provided to the Employee Association.

D. JOB DUTIES

As part of your initial orientation, you will learn the various duties and responsibilities of your job. The Company maintains certain expectations arid standards applicable to your job position. Your Supervisor or Department Manager should review these with you.

It is expected that Employees will perform additional duties and assume additional responsibilities as needed by their Supervisor or Department Manager for the efficient operation of the Company.

In order to adjust to changes in our business, it may become necessary to modify your job description, add to or remove certain duties and responsibilities, or reassign you to an alternate job position. The Company retains the right to change job assignments as it sees fit with or without notice to you.


6


CLA-VAL CANADA uAD

IV. PAYROLL

A. WORKING HOURS & SCHEDULE

Our standard workweek begins at 12:01 a.m. Sunday and ends at 12 midnight the following Saturday.

Work schedules for our employees are established within this framework depending upon the department requirements. A normal working schedule for regular full-time employees consists of 42.5 hours each workweek for plant personnel and 40 hours per week for office staff. Each employee's supervisor will advise the employee of his/her specific working hours.

The Company does reserve the right to alter work hours when necessitated by production requirements, economic conditions or unsafe working conditions and therefore does not guarantee the above standard hours of work. Before any changes are made to the present schedule notice shall be given to the Employee Association. In the event that work hours are to be increased, the change shall be made through mutual consent.

An employee shall receive a premium of forty-five cents in addition to their regular rate of pay, per hour, for time worked on an afternoon/night shift.

At times, emergencies such as power failures, road closings, earthquakes, fires, or severe weather may interfere with the Company's operations. In such an event, the Company may order a temporary shutdown of part or all of its operations. Depending on the circumstances, time off may or may not be paid.

In the event that foul weather threatens the safety of the employees travelling from work to get home, and it is decided that weather conditions necessitate early closing of the plant, employee's shall be paid one hour's pay, at their regular hourly rate for any time lost prior to the regular

. closing time.

1. Meals and Break periods Nonexempt Employees will be given a 30-minute meal period, to be taken approximately in the middle of the workday. Nonexempt Employees may also take two 1 0-minute rest periods per shift, one in each four-hour period. Rest periods may not be added to meal periods. Rest and meal periods are scheduled by each employee's supervisor to ensure that workstations and duties that require constant coverage are covered. Employees shall also be given a five (5) minute wash-up period. immediately prior to the lunch period and quitting time. If employees are · working under two hours extra per day, there will be no break at 4 p.m.

B~ TIMEKEEPING PROCEDURES

Nonexempt Employees must record their actual time worked for payroll and benefit purposes. Nonexempt Employees must also record any departure from work for any non-work-related reason, including when leaving the premises during the lunch periods. Employees should report to their supervisor prior to leaving the premises at any time other than the lunch period.

Computerized time clocks are provided for recording work time by all nonexempt employees. Employees should not report to work or punch their time in more than 20 minutes before the beginning or after the end of their shift. All overtime must be approved in advance by the employee's supervisor or department manager.


7



Altering, falsifying, and tampering with time records, or recording time on another Employee's time record is prohibited and subject to disciplinary action, up to and including termination of employment.

Adherence to the rules regarding timekeeping is essential. Any deviations from these rules could result in a pay shortage. If you do not understand the rules or the time clocks clearly, you are urged to discuss this with your supervisor immediately.

Any errors in your timekeeping should be repo'rted immediately to your Supervisor or Department Manager, who will attempt to correct legitimate errors.

Exempt Employees may also be required to record their time worked and report full days of absence from work for reasons such as leaves of absence, sick leave, or personal business.

C. OVERTIME When operating requirements or other needs cannot be met during regular working hours, you may be scheduled to work overtime. Overtime will be mandatory up to a 48-hour workweek after which overtime will be voluntary to a maximum of 60 hours per week subject to a written agreement with the Company .. All overtime work must be authorized in advance by your Supervisor or Department Manager. Working overtime without prior authorization or failing to work assigned overtime may result in disciplinary action. Nonexempt Employees will be compensated for all overtime hours worked in accordance with provincial and federal law. For the purposes of calculating overtime for nonexempt Employees, the workweek begins at 12:01 .a.m. Sunday and ends at 12:00 midnight Saturday.

Overtime shall be paid at time and a half (1%) of the employee's straight hourly rate for all overtime worked outside of the regularly scheduled shift hours, Monday through Friday inclusive, calculated on a daily basis. Saturday overtime will be calculated on a weekly basis, in the event of lost time during an employee's regular hours of work. Overtime worked on Sundays and holidays will be paid at double the employee's straight hourly rate.

In the event that overtime work is required, the Company shall call the senior employees in the respective departments first, subject to the ability to do the best job as decided upon by the department supervisor.

An employee can lose their right to overtime work, if that employee displays poor overtime work habits. The Company shall inform any employee that becomes ineligible for overtime work for said reasons and why.

In the event that not enough full-time employees are available for overtime work, part-time employees shall be called in at the Company's discretipn.

Employees who are assigned to overtime which extends more than three (3) hours beyond their regular quitting time, shall be provided with a meal and an appropriate eating period. The cost of the meal provided shall not exceed $6.00.

Exempt Employees are expected to work as much of each workday as is necessary to complete their job responsibilities. No overtime or additional compensation is provided to exempt Employees.


8


CLA-VAL CANADA u&o

D. PAYMENT OF WAGES

Paydays are on Wednesday of every other week for work performed during the previous twoweek pay period. If a regular payday falls on a holiday, Employees will be paid on the following workday.

Paychecks are deposited directly into your bank account on the Wednesday morning. If there is an error in your ch~que, please report it immediately to your Supervisor or Department Manager.

The rate of pay for each employee shall be based upon the individual's merits.

A Cost of Living Allowance (COLA) adjustment shall be made every six (6) months based on the previous six (6) month period. The formula shall be one cent ($0.01) per hour increase for each increase of .4 in the CPl. There shall be a fifty cent ($0.50) annual limit on the COLA.

E. REPORTING/SHOW-UP/EMERGENCY COMPENSATION

Any employee who reports for work at their regular starting time shall receive four (4) hours of pay at their regular rate of pay if the Company has no work for them, provided that the following conditions do not apply:

a) the employee has been notified not to report to work

b) where lack of work is due to circumstances beyond the Company's reasonable control

c) In the case of an employee returning to work after an absence if the employee has not notified the Company of their intention to return to work.

Show-up pay will not be included in the calculation of an Employee's overtime compensation. Rather, overtime compensation will be based on actual hours worked by the Employee.

An employee who has already left the premises of the Company after having completed their regular shift, and who is recalled for emergency work, shall be paid double their regular straight time hourly rate for all hours worked on recall up to the starting time of their regularly scheduled shift. A minimum of two (2) hours double time shall be paid for recall emergency work.

In the event that an employee is recalled for emergency work after having already left the premises, and after having completed their regular shift, between midnight and the starting time of their regular shift, that employee shall be paid at the rate of two and a half (2%) times their regular straight time hourly rate for all hours worked on recall up to the starting time of their regularly scheduled shift.

F. DISCRETIONARY BONUSES

Bonuses may be given at the sole discretion of the Company. There is no express or implied promise that bonuses will be given at all or at a specific time or for a specific amount or that all Employees will receive equal or proportionate bonuses.

G. SALARY PAY POLICY Exempt Employees will be paid a salary in accordance with applicable law. Although exempt employees are generally entitled to their salary for any week in which work is performed, deductions can and will be made when permitted by law. For example, an exempt Employee's


9

I I I I I I I I I I I I I I I I I I·

CLA-VAL CANADA u&o

salary may be reduced for complete days of absence for personal reasons and incomplete initial or final weeks of work. There may also be other occasions when an exempt Employee's salary may be reduced.

H. AUTOMATIC DEPOSIT

Employees may designate one or more bank account for automatic deposit of their paychecks. For example, a set amount may be directed into your savings account, with the balance deposited into your chequing account. Contact the Payroll department if you want to designate more than one bank account for automatic deposit.

I. WAGE GARNISHMENTS

Cla-Val Canada would like to avoid incurring the administrative costs of garnishments, support deduction orders and wage assignments for Employees. Accordingly, Cla-Val Canada encourages all Employees to meet their financial obligations without involving the Company. Nonetheless, the Company will adhere to legally imposed wage assignments, support deduction orders and garnishments, and will not modify the. terms of those legal arrangements unless ordered to by a court.

J. BUSINESS EXPENSE REIMBURSEMENT

Employees may be reimbursed for reasonable expenses incurred in the- course of business. These expenses may indude air travel, hotels, motels. meals, cab fare, rental vehicles, or gas and car mileage for personal vehides. Employees should discuss any anticipated expenses with their immediate supervisor or department manager prior to incurring the expense. All expenses incurred should be submitted to the Company along with the receipts.

Employees are expected to exercise restraint and good judgment when incurring expenses. Employees should contact their Supervisor or Department Manager in advance if they have any question about whether an expense will be reimbursed.

K. PAYROLL TAX DEDUC"riONS

Provincial and Federal laws require us to make the proper deductions on your behalf. Amounts withheld vary according to how much you earn, your marital status and the number of your exemptions.

Required deductions include: • Federal Income Tax • Provincial Income Tax • Canada Pension Plan • Employment Insurance • Provincial and Federal income t.ax liens

For these deductions, the Company acts only as a collector and immediately forwards all withheld taxes to the appropriate government agency.

Deductions that may also be made from an employee's pay, with the employee's written permission, indude:

• Taxable benefits • Association dues • United Way contributions


10

I

I I I I I I I I I I I I

CLA-VAL CANADA &Eo

o Company Pension and RRSP plans • Miscellaneous payments due for good and services requested and received by or on

behalf of the employee (i.e. safety shoes, safety glasses, tools etc.)

All deductions are explained on your pay cheque stub. If you have questions regarding· any deductions from your pay cheque, contact your supervisor or the Payroll Department.


11

I

. , I I I

I I I I I

CLA-VAL CANADA Llr.D

V. PERSONNEL

A. OPEN-DOOR POLICY AND COMPLAINT (GRIEVANCE) PROCEDURE .

Cla-Val Canada recognizes that Employees will have suggestions for improving the workplace, as well as complaints about the workplace. The most satisfactory solution to a job-related problem or concern is usually reached through a prompt discussion with your Supervisor or Department Manager. Please feel free to contact your Supervisor or Department Manager with any suggestions and/or complaints.

If you do not feel comfortable contacting your Supervisor or Department Manager or are not satisfied with your Supervisor or Department Manager's response, please submit your complaint or suggestion in writing to the Employee Association. The Association will review your written submission and if deemed appropriate enter a grievance on your behalf .

If your work related complaint or concern has not been resolved through informal discussion and you wish to have it addressed more formally the following complaint (grievance) procedure is provided to all employees:

Step 1: The complaint or grievance shall be presented to a member of the Executive of the Employee Association in writing (with a copy to the Company) within 10 days of the event upon which the complaint or grievance is based. The written complaint shall state the basis for and the facts in support of the complaint.

Step 2: The Executive of the Employee Association, upon receiving the written complaint shall give it consideration as soon as possible. If the Executive of the Employee Association determines that the complaint justifies further action it shall notify the Company.

Step 3: Once notified, the Company shall endeavour to meet with the Executive of the Employee Association as soon as reasonably possible. The purpose of the meeting is to discuss the complaint with a view to determining if a prompt resolution can be achieved mutually between the two parties.

Step 4: In the absence of a resolution between the parties, the decision of the Company is final and binding. The Employee Association and the employee shall be notified of the Company's decision in writing.

While the Company provides you with this opportunity to communicate your views, please understand that not every complaint can be resolved to your satisfaction. Even so, Cla-Val Canada believes that open communication is essential to a successful work environment and all Employees should feel free to raise issues of concern without fear of reprisal;

B. COMPANY DISCIPLINARY PROCEDURE

The Company believes that you will strive to do a good job in order to ensure that our relationship is a mutually productive one. It is important that you perform your job to the standards required and in compliance with our policies. If you have any doubts about the Company's expectations you are encouraged to seek the directions of your supervisor or department manager.

It is the Company's intent that you be given reasonable opportunity to correct or improve unsatisfactory performance or bebaviour if possible. However, if you violate the Company's policies, rules or practices you may be subject to discipline, including summary termination. Issued: August 20, 2001

12

I

I I I I '1;.

I I

CLA-VAL CANADA uAo The Company's disciplinary procedures include:

• verbal warning

• written warning

• suspension

• termination

The level or type of discipline the Company will impose will depend on a variety of factors, including the nature of the problem and your disciplinary record. The Company, in its sole discretion, reserves the right to impose any level of discipline (including summary termination) in the circumstances.

C. WORKPLACE DISCRIMINATION AND HARASSMENT

1. . EQUAL OPPORTUNITY

Cla-Val Canada is an equal opportunity employer and strives to comply with our laws which prohibit employment related discrimination based upon race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, record of offences, marital status, family status or handicap.

Employment related discrimination based upon the grounds prescribed under the Ontario Human Rights Code is unlawful.. All persons involved in the business of the Company are prohibited from engaging in that type of conduct.

Cla-Val Canada is committed to creating and maintaining an equal opportunity workplace. It is our policy to make decisions on hiring, promotion and other human resource issues based on merit and bona fide business considerations. Merit includes a person's qualifications, ability and performance.

The Company, subject to undue hardship, will reasonably .accommodate the needs of persons with disabilities in a manner that respects their dignity and helps maximize their contribution to Cla-Val Canada.

To achieve equal opportunity and accommodate individual needs, we must take a flexible management approach where reasonably possible. That may mean treating employees differently. We expect you to do your part in respecting individual differences and achieving equal opportunity.

2. HARASSMENT

It is the objective of Cla-Val Canada to ensure that all employees enjoy a work environment that is free of personal and sexual harassment.

The Company does not tolerate or condone personal or sexual harassment in the workplace.


13

I I 1-, 'I I 'I' I I .I: I I I ·r I I

CLA-VAL CANADA LIAD

Workplace· harassment costs everyone - the victim of harassment, other employees and the Company itself. It is our mutual responsibility to ensure that we create and maintain a harassment free workplace.

a. Sexual Harassment

Sexual harassment is a form of discrimination. It includes comments or conduct of a sexual nature that you do not welcome or that offends you because of your sex. It also includes negative or inappropriate comments or conduct directed at you because of your sex.

Both males and females can be victims of harassment and someone of the same or opposite sex can be the harasser.

Harassment has occurred if the person knew or should have known that you do not welcome the comments or conduct.

There are several types of sexual harassment. They include:

• a person in authority makes sexual advances or demands that you did not welcome or want

• a person in authority denies or threatens to deny you a benefit for refusing a sexual request

• a person in authority punishes or threatens to punish you for refusing a sexual request

• a person makes comments or engages in behaviour of a sexual nature that he or she knew or should have known was not welcomed by you

Some examples of behaviour that constitutes sexual harassment include:

• displaying sexually offensive material

• sexually suggestive or obscene comments qr gestures

• requests for sexual favours

• unwelcome remarks, jokes, innuendoes, propositions and taunting about your body, attire, sex or sexual orientation

• physical contact of a sexual nature

• sexual assault

b. Personal Harassment Personal harassment is also a form of discrimination. It includes comments or conduct that you do not welcome or that offends you because of your race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, age, record of offences, marital status, family status or handicap {"prohibited grounds").


14

I. 1\ J, ·r 1-J. ·a I I I. 'I,

CLA-VAL CANADA uAo Personal harassment includes hostile, intimidating or offensive conduct based upon one of the prohibited grounds. That conduct includes:

• verbal conduct (derogatory comments, threats or slurs)

• visual conduct (posters, pictures, photographs, drawings, cartoons or gestures)

3. CLA-VAL CANADA'S DISCRIMINATION AND HARASSMENT COMPLAINT PROCEDURE

Cla-Val Canada's complaint procedure is intended to provide for an immediate and fair resolution of workplace discrimination or harassment issues based upon a thorough and objective investigation of complaints received.

a. Informal Procedure If you feel you are being discriminated against or harassed, the first step to resolve the problem is to tell the person to stop. You should do so as soon as you receive any unwelcome comments or conduct in order to stop the problem or prevent it from escalating.

Some things you can say that might stop the behaviour include:

• «I don't want you to do that."

• "Please stop doing or saying ... "

• "It makes me uncomfortable when you ... "

• "I don't find it funny when you ... n

b. Formal Procedure If for any reason you are unable to resolve the problem using the informal procedure, speak to your Supervisor, Department Manager or the Human Resources Manager as soon as possible.

In response, the Company will explore your options with you. One of your options. is to initiate a formal complaint.

To file a formal complaint you need to provide the Company with as much written information as possible. That would include the name of the person you believe has discriminated against and/or harassed you, the place, date and time of the incident(s) as well as the names of any possible witnesses.

Once a detailed complaint is received a formal investigation will be initiated.

Investigation

• We recognize the sensitive nature of discrimination or harassment complaints and will keep your complaint confidential to the extent that we are able to do so. We will only release information as necessary to investigate and respond to the

1COmplaint. If you are questioned

as part of an investigation, we expect you to treat all discussions as confidential.


15

I 'I I I' ~a

I I I I 1-

I I

CLA-VAL CANADA LI.D

• We will commence our investigation as quickly as possible.

• The investigation will include giving the person accused an opportunity to respond to the allegations. It will also include speaking to witnesses and reviewing any related documentation.

• We will not tolerate retaliations or threats against anyone who complains about harassment or takes part in an investigation. Anyone who retaliates against or threatens you in relation to your harassment complaint may be disciplined or terminated.

• We will try to complete our investigation and communicate the results to the complainant and the person accused within 30 days after we receive the complaint.

Corrective Action

• If you have been engaged in sexual or personal harassment, you will be subject to disciplinary action, up to and including dismissal for cause.

•

•

•

If you retaliate or threaten to retaliate against someone for exercising his or her rights under this policy, you will be disciplined or dismissed for cause.

Cla-Val Canada will determine the appropriate corrective action in each case .

If you make an informal or-formal complaint in good faith and without malice, regardless of the outcome of the investigation, you will not be subject to any form of discipline. However, we will discipline or dismiss you if you make false accusations of discrimination or harassment, either maliciously or in bad faith.

D. PROHIBITED CONDUCT

In order to assure orderly operations and provide the best possible work environment, Cla-Val Canada expects Employees to follow "common sense" rules of conduct that will protect the interests and safety of personnel. It is not possible to list all the forms of behavior that are considered unacceptable in the workplace, but the following are examples of infractions of rules of conduct that may result in disciplinary action, including suspension, demotion, or terminatipn of employment (with or without the full application of the disciplinary procedure).

1. Falsification of employment records, employment information, or other records.

2. Recording the work time of another Employee, allowing any other Employee to record your work time, or allowing falsification of any time card, whether your own or another Employee's.

3. Theft or the deliberate or careless damage of any Company property or the property of any Employee or customer.

4. Removing or borrowing Company property without prior authorization.

5. Unauthorized use of Company equipment, time, materials, or facilities.

6. Possessing, distributing, selling, transferring, or using-or being under the influence of-alcohol or illegal drugs in the workplace.


16

I I J,

(I' I J, 1' I I 1/ J· 'I: J,

J,

I·

CLA-VAL CANADA uAo 7. Provoking a fight or fighting during working hours or on premises owned or occupied by the Company. ·

8. Participating in horseplay or practical jokes on the Company's time or on premises owned or occupied by the Company.

9. Carrying firearms or any other dangerous weapons, at any time, on premises owned or occupied by the Company.

1 0. Engaging in criminal conduct whether or not related to job performance.

11. Causing, creating, or participating in a disruption of any kind during working hours or on premises owned or occupied by the Company.

12. Insubordination, including but not limited to failure or refusal to obey the orders or instructions of any Supervisor or Department Manager or member of management, or the use of abusive or threatening language toward any Supervisor or Department Manager or member of management.

13. Using profane or abusive language at any time during working hours or while on premises owned or occupied by the Company.

14. Failing to notify the Company when unable to report to work.

15. Unreported absence of three consecutive scheduled workdays (job abandonment).

16. Failing to obtain permission to leave work from your Supervisor or Department Manager for any reason during normal working hours.

17. Failing to observe working schedules, including rest and lunch periods.

18. Failing to provide a physician's certificate when requested or required to do so.

19. Sleeping or malingering on the job.

20. Abusing the Company's policy regarding use of company phone for personal telephone calls.

21. Working overtime without authorization or refusing to work assigned overtime.

22. Wearing extreme, unprofessional, or inappropriate styles of dress or hair while working.

23. Violating any safety, health, or security policy, rule, or procedure of the Company.

24. Committing a fraudulent act or a breach oftrust in any circumstances.

25. Gambling on Company property.

26. Time clock rushing or leaving job station prior to final bell.

27. Smoking in unauthorized areas or at a time other than break and meal periods. Be careful about the right time and the right place.

28. Posting of personal notices on unauthorized boards.


17

I I' 1 I I I 1 I -a II, 1 ~a

I

CLA-VAL CANADA uAo 29. Excessive absenteeism/tardiness.

30. Acts of workplace discrimination and/or harassment.

Although employment may be terminated by either the Employee or the Company at any time, without following any formal system of discipline or warning, the Company may exercise its discretion to utilize forms of discipline that are less severe than termination. Examples of less severe forms of discipline include verbal warnings, written warnings, demotions and suspensions. While one or more of these forms of discipline may be taken in connection with a particular Employee, no formal order or procedures are necessary.

This statement of prohibited conduct does not alter or limit the Company's right to terminate (See Section II "Employment Relationship" and Section VIII "Termination").

E. CONDUCT & EMPLOYMENT OUTSIDE WORK

In general, the Company does not seek to interfere with Employees' off-duty activities. However, the Company cannot tolerate off-duty conduct that impacts negatively on the Company, either in terms of an Employee's individual work performance or the business interests of the Company, including its reputation. For example, the Company prohibits any illegal or immoral conduct by an off-duty Employee that affects or has the potential to affect the Company.

F. DRUG & ALCOHOL ABUSE

Cla-Val Canada maintains zero tolerance for drug and alcohol abuse by its Employees. The use of any illegal drugs, intoxicants, or controlled substances is strictly prohibited. Illicit drug use and indiscriminate alcohol consumption put everyone at risk and cannot be tolerated. In keeping with our efforts to promote health and safety and protect the interests of our Employees, customers, and the Company, we cannot allow anyone to use, possess, sell, manufacture, purchase, or be under the influence of alcohol, illegal drugs, intoxicants, or controlled substances at any time on Company premises, in Company vehicles, or while on Company business. Furthermore, the involvement of Employees in these activities off the job raises significant concerns for the Company and will be treated with equal severity.

1. Prohibited Acts The following rules and standards of conduct apply to all Employees. The Company strictly prohibits the following:

a. · Possession, use, or being under the influence of alcohol or an illegal drug, intoxicant, or controlled substance while on the job or on Company-owned or occupied premises;

b. Driving a vehicle on Company business while under the influence of alcohol or an illegal drug, intoxicant, or controlled substance;

c. Distributing, selling, manufacturing, or purchasing-or attempting to distribute, sell, manufacture, or purchase--an illegal drug, intoxicant, or controlled substance .during working hours or while on Company-owned or occupied premises; and

f. Violating any Company rule or policy regarding alcohol and drug use.

NOTE: Occasionally, alcohol is served at social events sponsored by the Company. Alcohol may be served at these events only with the approval of the General Manager. Only the


18

.I ~~

J, I' .I I ·a I I I~ ,. ·a I, 1\ I . ,: I. ,. J.

. CLA-VAL CANADA LI-D e moderate and limited use of alcohol is acceptable. Employees are expected to remain responsible, professional, and sober at all times.

G. PUNCTUALITY & ATTENDANCE

Cla-Val Canada expects you to report to work on a reliable and punctual basis. Absenteeism, early departures from work, and late arrivals burden your fellow Employees and the Company. If you cannot avoid being late to work or are unable to work as scheduled, you must call your supervisor.

TO REPORT AN ABSENCE, CALL (905) 563-4963

You must call daily if your absence will be longer than one day. If your absence continues for more than 5 working days, you must request a leave of absence. You must also inform the Company of the expected duration of any absence. The Company will comply with applicable laws relating to time off from work, but it is your responsibility to provide sufficient information to enable the Company to make a determination. You must notify your Supervisor or Department Manager of any changes in your status as soon as possible.

You are required to notify the Company of all absences. If you have not previously notified your Supervisor or Department Manager of an intended absence, you must call prior to the start of your scheduled shift or within the first hour of the shift for it to be considered a no-report absence. If you are unable to call, it is advisable that you have a friend or relative call in for you within the allowed time. ·

Excessive absenteeism may lead to disciplinary action, up to arid including termination of employment.

Individuals with disabilities may be granted reasonable accommodation in complying with these policies if undue hardship does not result to the Company's operations. However, regular attendance and promptness are considered part of each Employee's essential job functions.

H. PROMOTIONS AND TRANSFERS

It is the Company's policy to encourage and promote the career growth of each employee. Therefore, the Company encourages employees to apply for promotions to positions for which they are qualified. Promotions and transfers shall be based on ability, qualifications and potential of all the candidates for the positions.

Notice of job openings within the Company of more than one month's duration and newly creat~d positions are posted for five (5) days on the Employee Association bulletin board - except in cases where we are certain that no existing employees possess the required abilities and qualifications. Employees who are interested in a posted position should complete an In-House Job Application Form (available in Human Resources). Employees who have been with the Company a minimum of one year and have not received a promotion within the past 12 months will be considered .

The employee's qualifications, past performance, potential, related education, attendance record and capacity to assume the increased responsibilities of the position applied for will be evaluated.


19

I I I, I' I I 'I I a . I.

1 I f. 1 I .I I I I

CLA-VAL CANADA u&o

When, in the Company's judgment, two or more internal candidates are equally qualified, length of service with the Company will be a determining factor.

While the Company does wish to promote from within, there may be business interests or operational needs that require an outside hire to fill a vacancy or newly created position. The Company reserves the right to seek and hire outside applicants as necessary in the Company's sole discretion.

I. CONFIDENTIALITY/TRADE SECRETS

Information about Cla-Val Canada, its Employees, customers, suppliers, and vendors is to be kept confidential and divulged only to individuals within the Company with both a need to receive and authorization to receive the information. If in doubt as to whether information should be divulged, err in favor of not divulging information and discuss the situation with your Supervisor or Department Manager. ·

All records and files maintained by the Company are confidential and remain the property of the Company. Records and files are not to be disclosed to any outside party without the express permission of the General Manager. Confidential information includes, but is in no way limited to: financial records; business, marketing, and strategic plans; personnel and payroll records regarding current and former Employees; the identity of, contact information for, and any other account information on customers, vendors, and suppliers; inventions, programs, trade secrets, formulas, techniques, and processes; and any other documents or information regarding the Company~s operations, procedures, or practices. Confidential information may not be removed from Company premises without express authorization .

Confidential information obtained during or through employment with the Company may not be used by any Employee for the purpose of furthering current or future outside employment or activities or for obtaining personal gain or profit. The Company reserves the right to avail itself of all legal or equitable remedies to prevent impermissible use of confidential information or to recover damages incurred as a result of the impermissible use of confidential information.


20

I 'I I a-

' I I I ,,, J· I I t: 1 I. I I I J.

CLA-VAL CANADA LIAD

VI. CLA-VAL CANADA FACILITIES

A. POLICIES AGAINST WORKPLACE VIOLENCE

1. Statement of Policy Cla-Val Canada recognizes that violence in the workplace is a growing problem necessitating a firm, considered response by employers. The costs of workplace violence are great, both in human and financial terms. We believe that the safety and security of Cla-Val Canada Employees is p~ramount. Therefore, the Company has adopted this policy regarding workplace violence.

Acts or threats of physical violence, including intimidation, harassment, and/or coercion, that involve or affect the Company or that occur on Company property or in the conduct of Company business off Company property, will not be tolerated. This prohibition against threats and acts of violence applies to all persons involved in Company operations, including, but not limited to, ClaVal Canada personnel, contract workers, temporary employees, and anyone else on Cla-Val Canada property or conducting Company business off Company property. Violations of this policy, by any individual, will lead to disciplinary and/or legal action as appropriate.

This policy is intended to bring Cla-Val Canada into compliance with existing legal provisions requiring employers to provide a safe workplace; it is not intended to create any obligations beyond those required by existing law.

2. Definitions Workplace violence is any intentional conduct that is sufficiently severe, offensive, or intimidating to cause an individual to reasonably fear for his or her personal safety or the safety of his or her family, friends, and/or property such that employment conditions are altered or a hostile, abusive, or intimidating work environment is created for one or several Cla-Val Canada Employees. Workplace violence mc:[ly involve any threats or acts of violence occurring on Company premises,

· regardless of the relationship between the Company and the parties involved in the incident. It also includes threats or acts of violence that affect the business interests of the Company or that may lead to an incident of violence on Company premises. Threats or acts of violence occurring off Company premises that involve Employees, agents, or individuals acting as a representative of the Company, whether as victims of or active participants in the conduct, may also constitute workplace violence. Specific examples of conduct that may constitute threats or acts of violence under this policy include, but are not limited to, the following:

a. Threats or acts of physical or aggressive contact directed toward another individual;

b. Threats or acts of physical harm directed toward an individual or his/her family, friends, associates, or property;

c. The intentional destruction or threat of destruction of Company property or another Employee's property;

d. Harassing or threatening phone calls;

e. Surveillance;

f. Stalking;


21

I I I I' I I I I I I I ·a I 1 I 1 I I I

CLA-VAL CANADA uAo g. Veiled threats of physical harm or similar intimidation; and

h. Any conduct resulting in the conviction under any criminal code provision relating to violence or threats of violence that adversely affects the Company's legitimate business interests. Workplace violence does not refer to occasional comments of a socially acceptable nature. These comments may include references to legitimate sporting activities, popular entertainment, or current events. Rather, it refers to behavior that is personally offensive, threatening, or intimidating.

3. Enforcement

Any person who engages in a threat or violent action on Company property may be removed from the premises as quickly as safety permits and may be required, at the Company's discretion, to remain off Company premises pending the outcome of an investigation of the incident.

When threats are made or acts of violence are committed by Employee(s), a judgment will be made by the Company as to what actions are appropriate, including possible medical evaluation and/or possible disciplinary action and appropriate legal enforcement.

Once a threat has been substantiated, it is Cla-Val Canada' policy to put the threat maker on notice that he/she will be held accountable for his/her actions and then implement a decisive and appropriate response.

Under this policy, decisions may be needed to prevent a threat from being carried out, a violent act from occurring, or a life-threatening situation from developing. No existing policy or procedure of the Company should be interpreted in a manner that prevents the making of these necessary decisions.

Important Note: Cla-Val Canada will make the sole determination of whether, and to what extent, threats or acts of violence will be acted upon by the Company. In making this determination, the Company may undertake a case-by-case analysis in order to ascertain whether there is a reasonable basis to believe that workplace violence has occurred.

B. OPERATION OF VEHICLES

The use of Company-owned or Company-leased vehicles and rental of vehicles for Company business are limited to authorized Employees. These vehicles must only be used in work-related activities and may not be used for personal business or activities without prior approval of executive management.

All Employees authorized to drive Company-owned or Company-leased vehicles or to rent vehicles for use in conducting Company business, must possess a current, valid driver's license for the province in which they reside and an· acceptable driving record. Any change in license status or driving record must be reported to management immediately. From time to time, the Company or its insurance carrier will request reports from the relevant government agencies regarding the license status and driving record of Employees whose job responsibilities include driving. In the event that the license status or driving record of any Employee whose job responsibilities include driving becomes unacceptable to management or the Company's insurance carrier, that Employee may be restricted from driving, reassigned, suspended, or terminated, at management's discretion.

A valid driver's license for the province in which the employee resides must be in your possession while operating a vehicle off or on Company property. It is the responsibility of every Employee to


22

I. I I. ,. I I I I ,, I I I· I

-I I I

I

CLA-VAL CANADA u.Ao drive safely and obey all traffic, vehicle safety, and parking laws or regulations. Drivers should dempnstrate safe driving habits.

C. USE OF EQUIPMENT

All Company property--including desks, storage areas, work areas, lockers, file cabinets, credenzas, computer systems, office telephones, cellular telephones, modems, facsimile machines, duplicating machines, and vehicles-must be used properly and maintained in good working order. Employees who lose, steal, or misuse Company property may be personally liable for replacing or fixing the item and may be subject to discipline, up to and including discharge.

The Company reserves the right, at all times and without prior notice, to inspect and search any and all of its property for the purpose of determining whether this policy or any other policy of the Company has bften violated, or when an inspection and investigation is necessary for purposes of promoting safety in the workplace or compliance with provincial and federal laws. These inspections may be conducted during or after business hours and in the presence or absence of the Employee.

Employees are otherwise permitted to use the Company's equipment for occasional, non-work purposes with permission from their direct Supervisor or Department Manager. Nevertheless, Employees have no right of privacy as to any information or file maintained in or on Company property or transmitted through the Company. For purposes of inspecting, investigating, or searching Employees' files or documents, the Company may override any applicable passwords, codes, or locks in accordance with the best interests of the Company, its Employees, or its customers or visitors. All bills and other documentation related to the use of Company equipment or property are the property of the Company and may be reviewed and used for purposes that the Company considers appropriate.

Employees may access only files or documents that they have permission to enter. Unauthorized review, duplication, dissemination, removal, damage, or alteration of files, or other property of the Company, or improper use of information obtained by unauthorized means, may be grounds for disciplinary action, up to and including discharge.

D. USE OF TECHNOLOGY AND THE INTERNET

The Company's technical resources-including desktop and portable computer systems, fax machines, Internet and World Wide Web (Web) access, voice mail, and electronic mail (e-mail)enable Employees quickly and efficiently to access and exchange information throughout the Company and around the world. When used properly, we believe these resources greatly enhance Employee productivity and knowledge. In many respects, these new tools are similar to other Company tools, such as stationery, file cabinets, photocopiers, and telephones. Because these technologies are both new and rapidly changing, it is important to explain how they fit within the Company and within your responsibilities as an Employee.

This policy applies to all technical resources that are owned or leased by the Company, that are used on or accessed from Company premises, or that are used on Company business. This policy also· applies to all activities using any Company-paid accounts, subscriptions, or other technical services, such as Internet and World Wide Web access, voice mail, and e-mail, whether or not the activities are conducted from Company premises.

No·re: As you use the Company's technical resources, it is important to remember the nature of the information created and stored there. Because they seem informal, e-mail messages are sometimes offhand, like a conversation, and not as carefully thought out as a letter or


23

I I I I I I I I I I I I· I I t 1 ·I

- ··----------

CLA-VAL CANADA LI-:D ___________ ...lllll_..,. ______ _

memorandum. Like any other document, an e-mail message or other computer information can later be used to indicate what an Employee knew or felt. You should keep this in mind when creating e-mail messages and other documents. Even after you delete an e-mail message or close a computer session, it may still be recoverable and may even remain on the system.

1. Acceptable Uses The Company's technical resources are provided for the benefit of the Company and its customers, vendors, and suppliers. These resources are provided for use in the pursuit of Company business and are to be reviewed, monitored, and used only in that pursuit, except as otherwise provided in this policy.

Employees are otherwise permitted to use the Company's technical resources for occasional, non-work purposes with permission from their direct Supervisor or Department Manager. Nevertheless, Employees have no right of privacy as to any information or file maintained in or on the Company's property or transmitted or stored through the Company's computer, voice mail, email, or telephone systems.

2. Unacceptable Uses The Company's technical resources should not be used for personal gain or the advancement of individual views. Employees who wish to express personal opinions on the Internet are encouraged to obtain a personal account with a commercial Internet service provider and to

· access the Internet without using Company resources.

Solicitation for any non-Company business or activities using Company resources is strictly prohibited. Your use of the Company's technical resources must not interfere with your productivity, the productivity of any other Employee, or the operation of the Company's technical resources. Employees may not play games on the Company's computers and other technical resources during work time.

You should not send e-mail or other communications that either mask your identity or indicate that they were sent by someone else. You .should never access any technical resources using another Employee's password. Similarly, you should only access the libraries, files, data, programs, and directories that are related to your work duties. Unauthorized review, duplication, dissemination, removal, installation, damage, or alteration of files, passwords, computer systems or programs, or other property of the Company, or improper use of information obtained by unauthorized means, is prohibited.

Sending, saving, or viewing offensive material is prohibited. Messages stored and/or transmitted by computer, voice mail, e-mail, or telephone systems must not contain content that may reasonably be considered offensive to any Employee. Offensive material includes, but is not limited to, sexual comments, jokes or images, racial slurs, gender-specific comments, or any comments, jokes or images that would offend someone on the basis of his or her race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, record of offences, marital status, family status, handicap, as well as any other category protected by federal, provincial, or local laws. Any use of the Internet/World Wide Web to harass or discriminate is unlawful and strictly prohibited by the Company. Violators will be subject to discipline, up to and including discharge.

Cla-Val Canada does not consider. conduct in violation of this policy to be within the course and scope of employment or the direct consequence of the discharge of one's duties. Accordingly, to


24

I I I ,. I I I . I I I I· I a· I I ·a I ,.

CLA-VAL CANADA u&D

the extent permitted by law, the Company reserves the right not to provide a defense or pay damages assessed against Employees for conduct in violation of this policy.

3. Access to Information

The Company asks you to keep in mind that when you are using the Company's computers you are creating Company documents using a Company asset. The Company respects the individual privacy of its Employees. However, that privacy does not extend to an Employee's work-related conduct or to the use of Company-provided technical resources or supplies.

Electronic information created and/or communicated by an Employee using Company tools, such as software, Internet and World Wide Web access, voice mail, telephones, and e-mail, will generally not be monitored by the Company. Please keep in mind the following:

1. The Company monitors the performance, usage, and cost-effectiveness of its technical resources and periodically gathers information such as the number, frequency, time of day, and duration of calls or Internet/Web site visits.

2. The Company may, at its discretion, review any Employee's electronic files and messages as well as the volume and content of usage .

Remember that your electronic communications and files are neither private nor confidential. They may be read by others within the Company and outside it without first obtaining your permission. If there is information that you do not want to be available to others, you should send that information in other ways.

4. Copyrighted Materials

You should not copy and distribute copyrighted material (e.g., software, database files, documentation, articles, graphics files, and downloaded information) through the e-mail system or by any other means unless you have confirmed in advance from appropriate sources that the Company has the right to copy or distribute the material. Failure to observe a copyright may result in disciplinary action by the Company as well as legal action by the copyright owner. Any questions concerning these rights should be directed to your Supervisor or Department Manager.

5. Confidentiallnformation

E-mail and Internet/Web access is not entirely secure. Others outside the Company may also be able to monitor your e-mail arid Internet/Web access. For example, Internet sites maintain logs of visits from users; these logs identify which company, and even which particular person, accessed the service. If your work using these resources requires a higher level of security, please ask your Supervisor or Department Manager or management for guidance on securely exchanging email or gathering information from sources such as the Internet or World Wide Web.

All Employees should safeguard the Company's confidential information, as well as that of customers and others, from disclosure. Do not access new voice mail or e-mail messages with others present. Messages containing confidential information should not be left visible while you are away from your work area.

E-mail messages containing confidential information should include the following statement, in all capital letters, at the top of the message: CONFIDENTIAL: UNAUTHORIZED USE OR DISCLOSURE IS STRICTLY PROHIBITED.


25

I I I ,. ,, I I I I I I I I I I I I

CLA-VAL CANADA uAo

6. Security of Information

Although you may have passwords to access computer, voice mail, and e-mail systems, these technical resources belong to the Company, are to be accessible at all times by the Company, and are subject to inspections by the Company with or without notice. The Company may override any applicable passwords or codes to inspect, investigate, or search an Employee's files and messages. All passwords must be made available to management upon request. You should not provide a password to other Employees or to anyone outside the Company and should never access any technical resources using another Employee's password.

In order to facilitate the Company's access to information on its technical resources, you may not encrypt or encode any voice mail or e-mail communication or any other files or data stored or exchanged on Company systems without the express prior written permission from management and your Supervisor or Department Manager. As part of this approval, management will indicate a pro~dure for you to deposit any password, encryption key or code, or software with management so that the encrypted or encoded information can be accessed in your absence.

7. Cla-Val Canada' Software Policy

If you want to install software on Company computers, you must contact management and request to have the software installed. Employees are prohibited from installing any software on any Company technical resource without the express prior written permission from management.

Involving management ensures that the Company can manage the software on Company systems, prevent the introduction of computer viruses, and meet its obligations under any applicable software licenses and copyright laws. Computer software is protected from unauthorized copying and use by federal and provincial law; unauthorized copying or use of computer software exposes the Company and the individual Employee to substantial fines and exposes the individual Employee to imprisonment. Therefore, Employees may not load personal software onto the Company's computer system and may not copy software from the Company for personal use.

8. Your Responsibilities

Each Employee is responsible for the content of all text, audio, or images that they place or send over the Company's technical resources. Employees may access only files or programs, whether computerized or not, that they have permission to enter.

Violations of any guidelines in this policy may result in disciplinary action up to and including termination. In addition, the Company may advise appropriate legal officials of any illegal violations. ·

E. USE OF STATIONERY & MAIL SERVICES

All engraved or printed Company stationery, envelopes, and other work materials are for . Company business only. These. materials may not be used for personal correspondence or nonbusiness matters. When signing business letters on Company letterhead, the Employee's name and title or position must be used.

Employees are requested to limit their use of the Company's mail services to receive and send ·personal mail. Employees should provide postage for non-business related materials sent through the Company's mail services.


26

I I I I I· I .I

I I I I ,. I I I I I

I

CLA-VAL CANADA L.rED

F. EMPLOYEE PROPERTY

Employees should not bring valuables to work. If necessary to do so, all valuables should be kept in a secure location. In areas where available, the Company will provide Employees with a designated locker or other storage area for them to store their belongings while at work. The Company assumes no responsibility for the loss, theft, or damage of Employees' personal property.

G. VISITORS

Employees may have an occasional visit from a friend or relative provided advance approval is obtained from their Supervisor or Department Manager or the Human Resources Manager. Any visit must be arranged to minimize disruption of work.· Generally, friends and relatives should be asked not to visit Employees during working hours. Unattended children are not allowed in the facility or on the premises at any time. For safety and insurance reasons, friends, relatives, and customers are not permitted in areas restricted to Employees only, unless authorized by management.

H. SECURITY

You should be alert at all times and should report the presence of any suspicious persons to your Supervisor or Department Manager, or the Human Resources Manager immediately. You should also maintain in your possession at all times your keys, security passes, and identification badge(s). Do not lend these items to anyone who is not authorized to possess them. Similarly, computer passwords, electronic door codes, and any other security access information should not be disclosed to anyone who is not authorized to have that information.

I. SOLICITATION & DISTRIBUTION OF LITERATURE

The Company has established rules, applicable to all Employees, to govern solicitation and distribution of written material during working time and entry onto the premises and work areas. All Employees are expected to comply strictly with these rules.

1. No Employee shall solicit or promote support for any non-company sponsored cause or organization during his or her working time or during the working time of the Employee or Employees at whom the activity is directed;

2. No Employee shall distribute or circulate any written or printed material in work areas at any time, during his or her working time, or during the working time of the Employee or Employees at whom the activity is directed; and

3. Under no circumstances will non-Employees be permitted to solicit or to distribute written material for any non-company sponsored purpose on Company property.

As used in this policy, ''working time" includes all time for which an Employee is paid and/or is scheduled to be performing services for the Company; it does not include meal periods, or periods in which an Employee is not scheduled to be performing services or work for the Company.

J. EMPLOYEE PARKING

All employee parking is on a first-come first-serve basis. You may park your vehicle in a nonreserved space. Some parking areas, however, .may be reserved for disabled drivers, vendors, customers, vehicles belonging to the Company, and others. The Company will not be


27

I I I I I I I ., I I I I I I I I I I I

CLA-VAL CANADA LI.D

responsible for any damage to your vehicle or the contents of your vehicle while parked on Company property. Employees are requested to park in the Company provided lots and not on neighboring public streets.

K. BULLETIN BOARDS

Bulletin boards are reserved for the exclusive use of the Company for posting work-related notices or notices that must be posted pursuant to local, provincial, and federal law. From time to time, special notices and information for Employees will be posted by the Company on the bulletin boards. Please check the boards regularly for these notices. Employees may post notices on certain Company's bulletin boards provided they obtain advance approval from their Supervisor or Department Manager or the Human Resources Manager.

The Employee Association will be·provided with a bulletin board in the plant for the purpose of posting Employee Association notices and official papers. Notices are to be posted by the executive of the Employee Association only and are to be posted in keeping with the spirit and inten~ of the agreement between the Company and the Employee Association.

L. TELEPHONES

While you are at work, you are expected to perform your job duties and responsibilities. Personal calls, both incoming and outgoing, must be kept to a minimum and must not interfere with your duties and responsibilities or the Company policies. Long distance calls are prohibited absent the express approval of your Supervisor or Department Manager. Abuse of the telephone call policy may result in discipline, up to and including termination.

M. HOUSEKEEPING

All Employees are expected to maintain their desks and/or work areas in an orderly fashion. Also, please pick up after yourself when you use the break room, locker room, or restroom.

N. SMOKING POLICY

Employees, customers, vendors, and other guests are not allowed to smoke in Company facilities at any time. Smoking is not allowed in customer areas, within 15 feet of any entrance to a Company building, or in restrooms.

0. HEALTH & SAFETY

The health and safety of Employees and others on Company property are of critical concern to Cla-Val Canada. We strive to attain the highest possible level of safety in all activities and operations. The Company also intends to comply with all health and safety laws applicable to our business.

To this end, the Company must rely upon Employees to ensure that work areas are kept safe and free of hazardous conditions. Employees should be conscientious about workplace safety, including proper operating methods and known dangerous conditions or hazards. You should report any unsafe conditions or potential hazards to your Supervisor or Departme11t Manager immediately, even if you believe you have corrected the problem. If you suspect a concealed danger is present on the Company's premises, or in a product, facility, piece of equipment, process, or business practice for which the Company is responsible, bring it to the attention of your Supervisor or Department Manager or the Joint Health and Safety Committee immediately. Supervisor or Department Managers should arrange for the correction of any unsafe condition or


28


CLA-VAL CANADA LAEo

concealed danger immediately and should contact the Joint Health and Safety Committee regarding the problem.

Periodically, the Company may issue rules and guidelines governing workplace safety and health. The Company may also issue rules and guidelines regarding the handling and disposal of hazardous substances and waste. All Employees should familiarize themselves with these rules and guidelines, as strict compliance will be expected. Contact your Supervisor or Department Manager for copies of current rules and guidelines. Failure to comply strictly with the following "common sense" General Safety Rules and guidelines regarding health and safety or negligent work performance that endangers health and safety is required of all employees. Failure to comply will not be tolerated and will result in disciplinary action up to and including termination.

The Company shall furnish/pay for all and any lenses for employees who must wear prescription glasses, who are in a situation/job that requires that safety glasses be worn. The Company shall furnish the safety lenses and standard frame only (from an optical outlet so specified by the Company) and shall not be responsible for tinting etc. The employee must show the prescription and receipt of payment of said lenses, in the case of reimbursement by the Company. The Company shall reimburse any amount up to $125.00 maximum per calendar year.

It is the responsibility for employees to furnish their own safety shoes. The Company will reimburse the employee in the amount of $40.00 for approved shoes upon presentation of proof of payment.

GENERAL SAFETY RULES

1. Report all work injuries and illnesses to your Supervisor or Department Manager immediately.

2. Report all unsafe acts or unsafe conditions to your supervisor.

3. Use seat belts when on Company business in any vehicles.

4. Firearms, weapons, or explosives are not permitted on Company property.

5. Only authorized and trained employees may repair or adjust machinery and equipment. Lockout and Tagout Procedures must be followed before removing any machine guards or working on powered machinery and equipment. Replace all guards when the job is completed.

6. Only qualified and trained employees may work on or near exposed energized electrical parts or electrical equipment. Follow Electrical Safety Rules when working with electrically powered machinery and equipment.

7. Only authorized and trained employees may enter a posted Restricted Area. All restricted areas will be posted Restricted Area - Authorization Required. Entry is allowed only after authorization is granted.

8. Only authorized arid trained employees may dispense or use chemicals. It is your responsibility to know where Material Safety Data Sheets (MSDS's) are located and that they are available for your use and review.

9. Employees must have Company authorization in order to operate a forklift. Operate machinery only on which you have received full instructions and which you are authorized to operate.

10. Keep work areas clean and aisles clear. Do not block emergency equipment or exits.

11. Wear and use the prescribed Personal Protective Safety Equipment. This includes foot protection, head protection, gloves, etc. Check with your supervisor for what is required for the


29

I I I I I I

I I I I I I I I I I

job you will be doing. Employees are required to wear any safety equipment issued by the Company and deemed necessary for their job classification and duties.

12. Safety glasses are required in all production, maintenance and stock areas at all times. Employees who must wear prescription glasses may obtain authorization and information to order safety glasses through the Human Resources Department. Non-prescription safety glasses can be obtained in several locations around the plant.

13. Do not use compressed air hoses for blowing chips off hands, face, or clothing.

14. Know the location of all emergency equipment in your area, such as exits, first aid area, fire extinguisher, emergency shutoffs, etc.

15. All employees working on, with or around any moving machinery must keep all hair on the face and head contained and held above collar and/or shoulder level by a haimet, hat, helmet or other means deemed acceptable by the Joint Health and Safety Committee.

Failure to follow the above rules may cause serious injury and/or illness. Disciplinary Action, up to and including Termination, will be used to assure rule enforcement. Please use common sense and think before you act. If you are not sure how to complete a job or task safely or have any questions, ask your Supervisor or Department Manager.

Any workplace injury, accident, or illness must be reported to your Supervisor or Department Manager as soon as possible, regardless of the severity of the injury or accident. If medical attention is required immediately, the Human Resources Department will assist Employees in obtaining medical care, after which the details of the injury or accident must be reported.

P. POLICY REGARDING VIOLENT CRIME

1. Statement of Policy Cla-Val Canada recognizes the unfortunate reality that violent crimes do occur in the workplace. The potential commission of a ·violent crime in the workplace may threaten the safety of Employees as well as customers. Therefore, due to the Company's concern for the safety of its Employees and customers, it is the Company's policy to provide guidelines to Employees about the signs of incipient violence and steps to take to prevent or lessen the impact of the violence.

2. Guidelines for Protecting Employee and Customer Safety

Prevention is the threshold measure to protect Employee and customer safety. Accordingly, you should make a conscious effort to observe your surroundings and report any suspicious persons or activities to the police.

In the unfortunate event you are confronted with a potentially violent situation, remember to stay calm, move slowly, and cooperate with the perpetrator. Do not argue, fight, display a weapon, or offer any other form of resistance. To the extent possible, Employees should attempt to concentrate on limiting as much as possible the risk to themselves and co-workers.

If possible, write down everything you can remember about the incident and the perpetrator. Employees are expected to cooperate fully with the enforcement authorities after the occurrence of an incident.


30

I I I I . I I I I I I I I I I I t· I I I

CLA-VAL CANADA u&o

VII. BENEFITS

A. PUBLIC HOLIDAYS

Cla-Val Canada observes the following public holidays: New Year's Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day, and Boxing Day. If a holiday falls on a weekend day, it is observed on the following Monday, unless the Company and the Employees Association mutually agree to select an alternate day to be observed as the holiday. Employees may also take one ''floating holiday" at any time during the year with the mutual consent of the Company and the Employee Association .

Any employee required to work on any of the above-named holidays shall be paid at double the rate of their regular straight time hourly rate, in addition to their regular holiday pay.

Employees must have completed their introductory/probationary period to be eligible for floating holiday pay

Holiday pay will be calculated based on straight time pay rate (as of the date of the holiday) times the number of hours you would have otherwise worked on that day. If an employee is required to work on a holiday, pay will be standard holiday pay, plus double time for actual hours worked.

To be eligible for public holiday pay, you must work your last regularly scheduled shift immediately proceeding and the first scheduled shift following the holiday. Exception: If a certification by an appropriate licensed caregiver is presented for treatment of a work-incurred injury or for an illness treated on the scheduled workday prior to or following the holiday, the employee may be eligible for holiday pay. Additionally, if the employee can provide acceptable proof of an unavoidable emergency on the· scheduled workday prior to or following the holiday, the employee may be eligible for holiday pay.

Holidays that fall during a scheduled vacation will be paid as holidays and will not be considered a vacation day.

B. VACATIONS Full-time Employees accrue paid vacations in accordance with the schedule below.

Employees are strongly encouraged to take their accrued vacation each year. You must request vacation as far in advance as possible. Vacations will be scheduled so as to provide adequate coverage of job and staff requirements. The Supervisor or Department Manager will make the final determination in this regard.

Your vacation time is determined by the length of time you have worked at the company during the current calendar year. If your anniversary date for which you eam additional Vacation time occurs during the year, your vacation time will be prorated for the year according to the date of your anniversary.

Plant employees will have their vacation pay calculated as a ·percentage of their gross earnings (in accordance with the schedule below) for the previous period of July 1 to June 30. Increases in the vacation pay accrual percentage will begin in accumulate as of the anniversary date when the employee becomes eligible for the increase. Office and Exempt employees will have their vacation pay calculated according to the vacation time earned for the current year and their current wage as of the first of January.


31


CLA-VAL CANADA LIIED

Length of Active Employment at end of current fiscal year

Less than 3 months 3 months, but less than 4 months 4 months, but less than 5 months 5 months, but less than 6 months 6 months, but less than 7 months 7 months, but less than 8 months 8 months, but less than 9 months 9 months, but less than 10 months 1 0 months, but less than 12 months 1 year, but less than 6 years 6 years, but less than 12 years 12 years, but less than 20 years 20 years, but less than 21 years 21 years, but less than 22 years 22 years, but less than 23 years 24 years, but less than 25 years 25 years, but less than 26 years 26 years, but less than 27 years 27 years, but less than 28 years 28 years, but less than 29 years 29 years, but less than 30 years 30 years and over

Vacation Accrual Chart

Vacation Hours Due current fiscal year

None 1.5 days

2 days 2.5 days

3days 3.5 days

4days 4.5 days

1 week 2weeks 3weeks 4weeks 4weeks 1 day 4 weeks 2 days 4 weeks 3 days 4 weeks 4 days 5weeks 5 weeks 1 day 5 weeks 2 days 5 weeks 3 days 5 weeks 4 days 6weeks

Vacation Pay Accrual %age

4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 6% 8%

8.4% 8.8% 9.2% 9.6% 10%

10.4% 10.8% 11.2% 11.6%

12%

Employees are encouraged to schedule vacation time off by April 15th of each year. Prior to April 161

h, in the event of a conflict of dates, vacation time off will be approved on a seniority basis. After April 151

h, vacation time off will be approved on a first-come first-serve basis. · Vacation time off may not be saved for use in future years. The Company reserves the right to

determine and schedule vacation time off for employees who have not scheduled their time off by November 1st of the year.

Vacation does not accrue during leaves of absence or other periods of inactive service. Unused vacation pay will be paid out during November unless previously arranged with the payroll department.

C. SICK LEAVE The Company provides eligible Employees with paid absence time off ("PA") from work. PA may be taken for any reason, including your illness, vacation time, bereavement time, and other personal time away from work. Full-time and Part-time Employees accrue PAin accordance with the schedule below. Temporary Employees do not accrue PA.

Newly hired Employees accrue PA according to the amount of time employed between their hire date and the end of November. The amount of your PA time for the current year is determined by your length of service as of the end of the current contract year (December 1 to November 30). PA accrues at a rate of 5 days per year {or approximately 1 day per 2.5 months). Employees will be compensated for unused accrued PA by the end of each contract year (November 30). PAwill only be paid out during the year as it is eamed. ·


32


CLA-VAL CANADA uAo Unscheduled paid time off may be taken only for an Employee's own illness or injury, or that of the Employee's parent, current spouse, or child. Certification by your health care provider is required for absences due to your illness or injury of four or more consecutive workdays or for intermittent absences due to the same reason. A health care provider's certification is also required prior to reinstatement after one of these absences. A health care provider's certification may also be required in other circumstances. It is your responsibility to apply for any disability benefits for which you may be eligible as a result of illness or disability, including employment insurance, workers' compensation insurance, and/or any short-term disability insurance benefits for which you qualify.

Nonexempt Employees must use PA for otherwise unexcused time away from work during their regularly scheduled hours. PA may not be used during holidays, vacation, or hours of work outside your regular schedule. Your PA benefits will be fully integrated with other benefits available to you so that at no time will you be paid more than your regular compensation. Employees will not accrue PA during leaves of absence or other periods of inactive service.

Current year PA will be pro-rated, accrued and paid if termination occurs for any reason prior to the current contract year end. PA is not accumulated while on any leave of absence or layoff. PA will be paid at the straight time hourly rate being earned at the time such absence is taken and/or paid.

D. ·1NSURANCEBENEFITS

Subject to the terms and conditions of the insurance benefit plans in place from time to time, employees are eligible for insurance benefit coverages. The benefit plans currently in place are referred to below. The Company reserves the right to cancel or modify the benefit plans in place from time to time with Employee Association approval or with reasonable notice and change the insurance provider without notice. Benefit plan participation is not available for part-time or temporary employees, interns or other individuals who perform services under an agreement with a leasing company.

1. Medical and Health Insurance Medical, Weekly Indemnity, Accidental Death & Dismemberment and life insurance coverage is a benefit provided by the Company. Employees will be eligible to participate in the insurance benefit plans after completing ninety (90) days of employment subject to the terms and conditions of these plans. All new Employees will be notified of their upcoming eligibility for group insurance benefits and informed how to complete the required documents. The Company will not be held responsible for the failure of employees to return the completed documents within the time specified.

Copies of the Plan Documents and Summary Plan Descriptions and other informative documents are available from the Human Resources Manager. The Plan Document governs your eligibility and benefit coverages. ·

2. Dentallnsurance

Dental insurance coverage is a benefit provided by the Company. Employees will be eligible to participate in the dental plan after completing one year of employment subject to the terms and conditions of the plan. All new Employees will be notified of their upcoming eligibility for group insurance benefits and informed how to complete the required documents: The Company will not


33


CLA-VAL CANADA uAo

be held responsible for the failure of employees to return the completed documents within the time specified.

Copies of the Plan Documents and Summary Plan Descriptions and other informative documents are available from the Human Resources Manager. The Plan Document governs your eligibility and benefit coverages.

3. Employment Insurance

The Company contributes to the federal employment insurance programs on behalf of its Employees.

4. Canada Pension Plan

The Company matches each Employee's Canada Pension Plan contribution as required by Federal law. You may be eligible to receive these benefits upon your retirement and/or perhaps in other circumstances in accordance with the Canada Pension Plan laws.

5. Workers' Compensation If you are injured or become ill on the job, then you may receive, at no cost to you, workers' compensation insurance benefits that may include medical care, compensation, and vocational rehabilitation. To receive workers' compensation benefits, you must:

a. Report any work-related injury to your Supervisor or Department Manager immediately.

b. Have a written claim form completed and return it to the Human Resources Manager.

c. Seek medical treatment and follow-up care if required in accordance with written policy and instructions from appropriate Company personnel and workers' compensation insurance carrier personnel.

NOTE: All work-related injuries must be reported to your Supervisor or Department Manager immediately, regardless of whether you wish to receive medical attention at the time.

The law requires that the Company notify the workers' compensation insurance company of any concerns of false or fraudulent claims. Any person who makes or causes to be made any knowingly false or fraudulent material statement or material misrepresentation for the purpose of obtaining or denying workers' compensation benefits or payments is guilty of a crime. Prosecution may result in imprisonment, a fine, or both. Additional civil penalties may be in order.

E. LEAVES OF ABSENCE

1. General Provisions

Cla-Val Canada may grant a leave of absence in certain special circumstances. You should notify your Supervisor or Department Manager and/or the Human Resources Manager in writing as soon as you become aware that you may need a leave of absence. The Company will consider your request in accordance with applicable law and the Company's leave policies. The considerations include the reason for the request, the expected duration of the leave and the impact upon the Company's business and operational interests. You. will be notified whether your leave request is granted or denied. If you are granted leave, .you must comply with the terms and conditions of the leave, including keeping in touch with your Supervisor or Department Manager


34

I I I I I I I I I I I ·I I I I I I II

I

CLA-VAL CANADA u.Ato or the Human Resources Manager during your leave, and giving prompt notice if there is any change in your return date.

You must not accept other employment while you are on a leave of absence. Acceptance of other employment while on leave will be treated as a voluntary resignation from employment at the Company. Benefits, such as paid time off, vacation time, and holidays, will not accrue while you are on a leave of absence. Upon return from a leave of absence, you will be credited with the full employment status that existed prior to the start of the leave in accordance with applicable provincial laws.

The Company may hold in abeyance or proceed with any counseling or disciplinary action, including discharge, that was contemplated prior to any Employee's request for or receipt of a leave of absence or that has come to the Company's attention during the leave. If any action is held in abeyance during the leave of absence, the Company reserves the right to proceed with the action upon the Employee's return. Requesting or receiving a leave of absence in no way relieves Employees of their obligation while on the job to perform their job responsibilities capably and up to the Company's expectations and to observe all the Company policies, rules, and procedures. An employee's seniority will be maintained through out all leaves of absence as outlined below.

2. Pregnancy and Parental Leave

You will be granted pregnancy and/or parental leave in accordance with our provincial laws (The Employment Standards Act). Income replacement during your unpaid leave for pregnancy or parental purposes is available under federal laws {Employment Insurance Act). The conditions and requirements set out below summarize your obligations under provincial law.

To be eligible for pregnancy leave, a pregnant employee must have been employed by the Company for at least 13 weeks before the expected birth date of the child.

To be eligible for parental leave, an employee who is the parent of a child must have been employed by the Company for at least 13 weeks before the birth of the child or the coming of the child into the custody, care and control of the parent for the first time.

You must give the Company at least 2 weeks written notice before the day your pregnancy leave is to begin and, if requested, you are required to provide a certificate from a qualified medical practitioner stating the due date.

You must give the Company at least 2 weeks written notice before the day your parental leave is to begin if you are eligible and intend to take your leave. You may advise the Cor:npaAy about your plans to take both pregnancy and parental leave in the same written notice or you may give written notice for parental leave at least 2 weeks before the end of the pregnancy leave.

The duration of pregnancy leave is 17 weeks. The duration of parental leave is 35 weeks.

You can elect to end your pregnancy and/or parental leave on an earlier date provided you give the Company at least 4 weeks written notice of that change.

If you take pregnancy or parental leave, and wish to resign from employment before the leave expires or when it expires, you must give the Company at least 4 weeks written notice of your decision.


35

I I I I ,I I I I I I I I I I I I I I I

~C~LA~-~V~A~L~C~A=N=A=D=A~L=I=~-=~0~----------------------------------------------------tt------------------------------------

This policy is intended to generally outline your entitlement to pregnancy and/or parental leave as provided for under provincial law .(Employment Standards Act). In every respect, the Company will govern itself in accordance with all applicable laws regarding pregnancy and parental leave.

Should this policy conflict with applicable provincial law in any way, the provindal law shall govern.

3. Workplace Safety & Insurance Board (WSIB) Leave

a. Employee Eligibility

The Company will grant you a WSIB leave in accordance with provincial law if you incur an occupational illness or injury. As an alternative, the Company may offer you modified work. Leave taken under the WSIB policy runs concurrently with family and medical leave under both federal and provincial law. ·

b. Notice & Certification Requirements

You must report all accidents, injuries, and illnesses, no matter how minor, to your immediate Supervisor or Department Manager. If you sustain an injury that requires medical attention the company shall pFOvide transportation as required .although the .Company is not responsible for the payment of any such time or transportation that is compensated for by the WSIB.

c. Compensation During Leave

WSIB leaves are without pay from the Company after it has paid for -any time lost during the day that they injury occurred at his/her regular daily earnings, including any overtime premium and applicable shift differ.ential. However, you may be eligible for. .paid leav.e from the Workers' Compensation insurance carrier. You may use accrued paid time off, vacation time, and any other accrued paid time off during the leave. All of those payments will be coordinated with any provincial WSIB, or other wage reimbursement benefits for which you may be eligible. At no time will you receive a greater total payment than your regular compensation.

d. Benefits During Leave

If you are also eligible for WSIB leave, the Company will maintain, for up to a maximum of 50 workweeks, any group health insurance coverage that you were provided before the leave on the same -terms as .ff you had rominued to-work .. U- you. -are -not -eligible· for WS!B leave,. you will receive continued paid coverage on the same basis as Employees taking other leaves.

e. Reinstatement Upon the submission of_ acceptable medical.certification .. that .you. are. able. to. return .to. work,. you .. will be reinstated in accordance with applicable law. If you are disabled due to an industrial injury,. the. Company will attempt to accommodate you. If you are returning from a WSIB leave that runs concurrently with a pregnancy and parental leave, then the provisions of the pregnancy and parental leave policy will also apply.

4. Bereavement Leave

In the event of a death in the immediate family of a full-time employee who has completed. the introductory/probationary period, the employee will be allowep to use their paid absence time off leave. There are no additional bereavement leave benefits.


36


CLA-VAL CANADA uAo Immediate family is defined as current spouse, mother, father, sibling, child, current mother-inlaw, current father-in-law, employee's grandparents and grandchildren.

5. Jury Duty Service

· Company policy enables employees to fulfill their civic obligatbn of jury duty. Employees summoned for jury duty must notify their Supervisor or Department Manager immediately. The Company shalL pay. any. employee for each. day of service to a maximum. of twenty (20) working days, the difference in pay between their regular rate of pay and the payment they received for jury duty.

Verification of jury duty service/attendance must be provided to the Payroll department to qualify for jury duty pay as well as the amount of pay thereby received. Employees are required to report to work on the days they are excused from jury duty. Second shift employees will be transferred to day shift while serving on jury duty.

F. EDUCATIONAL ASSISTANCE/TUITION REIMBURSEMENT

Cla-Val Canada Employees are encouraged to continue learning within their profession or career. Accordingly, all full-time Employees may be eligible to receive tuition reimbursement, up to three hundred dollars ($300) annually, for educational courses directly related to their performance and/or position with the Company. In order to qualify for reimbursement, you must submit a course description at least three (3) weeks in advance of the beginning of instruction .to the Human Resources Manager for approval by the Company. Courses must be taken at an accredited school to qualify for reimbursement.

Tuition will be reimbursed to the Employee upon satisfactory completion of the course, and submission of documentation showing a _grade of "C" or better. In order to receive reimbursement, Employees must provide itemized receipts establishing enrollment in the course and book purchases.

The Company's commitment to providing educational assistance should not be understood as guaranteeing that successful completion of a course will result in the Company providing additional compensation or job benefits. ·

G. COMPANY PENSION PLAN

Cla-Val Canada has adopted a Pension· Plan for certain eligible Employees. Employees will be eligible to participate in the pension plan after completing 2 years of employment subject to the terms .and conditions. of .the .plan. All new Employees wiiJ be notified of their upcoming eligibility for group insurance benefits and informed how to complete the required documents. The Company will not be held responsible for the failure of employees . to return the completed documents within the time specified. Under the Plan, an eligible Employee contributes four (4) percent of his or her pre;-tax basic earnings. The Company has a contribution matching plan based upon the percentage of your contribution. Please consult the Summary Plan Description for more complete information about eligibility and the details of the Company's Pension Plan. Copies of the Plan Document and Summary Plan Description are available from the Human Resources Manager. The Plan Document governs eligibility and benefit coverages.


37


CLA-VAL CANADA Ll·~

The vesting period is two (2) years of membership in the plan. Maturity is set at sixty-five (65) years of age, negotiable by the Company. Employees who have achieved thirty (30)" years of service are allowed access to their pension account in accordance with applicable legislation.

Any employee withdrawing from the plan, who is not vested is entitled to their contributions only. Contributions made on that employee's behalf by the Company remain in the fund, and are not accessible to the Company.

NOTE: Benefit participation is not available for part time employees, interns, temporary employees or individuals who perform services for the Company under an agreement with a leasing organization.


38


CLA-VAL CANADA u&o

VIII. TERMINATION

A. VOLUNTARY TERMINATIONS

If you decide to leave your employment with Cla-Val Canada, we ask that you give us at least two weeks written notice. This will give us the opportunity to make the necessary adjustments in our operation. Please return all property owned by the Company (e.g., vehicles, computers, keys, identification badges, credit cards) prior to your departure. The Company retains the right to accept your resignation immediately and pay you the amount of straight time compensation you would have earned in place of any further performance up to an amount equal to a maximum of two week's compensation.

B. INVOLUNTARY TERMINATIONS

While the decision to commence an employment relationship is consensual, the same is not always true regarding the decision to terminate the relationship.

The Company reserves the right to terminate your employment in the following circumstances:

1. Without notice of termination, pay in lieu thereof or severance, for misconduct amounting to just cause. Just cause includes, but is not limited to:

• Failing to abide by the Company's policies, rules or procedures

• Unacceptable performance standards

• Dishonesty, theft or misappropriation of Company property

• Intentional destruction, improper use or abuse of Company property

• Falsifying records

• Assaulting or endangering others

• Discriminating or harassing conduct

• Insubordination

• Intoxication or impairment in the workplace

• Repeated, unwarranted lateness, absenteeism or failure to report to work

2. At any time, in its sole and absolute discretion, for any reason whatsoever, upon providing you with one weeks' notice of termination or pay in lieu thereof for each completed year of employment to a maximum of 8 weeks' notice or pay in lieu thereof, together with any statutory severance pay required in the circumstances under the Employment Standards Act, as amended.

c. REDUCTIONS IN FORCE

While the Company hopes to continue growing and providing employment opportunities; business conditions, customer demand, and other factors are unpredictable. Changes or downturns in any


39


CLA-VAL CANADA LlaD

of these or other areas could create a need to restructure or reduce the number of people employed. In light of these uncertainties, please be advised that it may become necessary to conduct layoffs at some point in the future.

In the event that the Company determines to lay off any Employee or a number of Employees, seniority will be the predominant determining factor, however, the Company retains full discretion to select which Employee(s) will be laid off. While Cla-Val Canada retains full discretion, some of the relevant factors might include the Company's operational requirements and special skills, productivity, ability, and past performance of those involve&

In the event of a layoff,. employees shall be given notice consistent with the Employment Standards Act. The Employee Association Executive shall be given adequate notice of pending lay-offs. In the event of a reduction in the work force that necessitates the laying-off and/or demotion of certain employees, the following procedures shall apply:

Any employee whose seniority is such that in a case of demotion he/she can replace an employee in a lower classification, may elect to take the lay-off instead of demotion under the following conditions:

a) he/she must notify the Company within twenty-four (24) hours after he/she has been notified of his/her demotion that he/she has elected to take the lay-off

b) any employee taking advantage of this privilege, will only be recalled to the classification held at the time that he/she elected to be laid-off

If any employee substitutes, in any department, on any job, during the temporary absence of another employee, he/she shall receive the rate of pay for the said job or his/her regular rate of pay, depending on which is higher, or the rate of pay for the said job as agreed upon between the management and the employee prior to taking said job.

Seniority shall be maintained during a lay-off due to a lack of work for up to a maximum of twentyfour (24) consecutive months. Failure to return to work after being recalled to work within ten (10) days after being notified by the Company (by a registered letter to the last known address) will result in the employee losing their seniority.


40

r

~eceived: 9/30/02 11:52AM; ·>E.I.S./O.C.B.I.; #528; Page 3

SEP-30-2002 11: 55 -VAL CANADA CORP e 905 563 4040

CLA-VAL CANADA LIMITED

of these or other areas could create a need to restructure or reduce the number of people employed. In light of these uncertainties, please be advised that it may become necessary to conduct layoffs at some point in the future.

In the event that the Company determines to lay off any Employee or a number of Employees, seniority will be the predominant determining factor, however, the Company retains full discretion to select which Employee(s) will be laid off. \Nhile Cla·Val Canada retains full discretion, some of the relevant factors might include the Company's operational requirements and special skills, productivity, ability, and past performance of those involved.

In the event of a layoff, employees shall be given notice consistent with the Employment Standards Act. The Employee Association Executive shall be given adequate notice of pending lay-offs. In the event of a reduction in the work force that necessitates the laying-off and/or demotion of certain employees, the following procedures shall apply:

Any .employee whose seniority is such that in a case of demotion he/she can replace an employee in a lower classification, may elect to take the lay-off instead of demotion under the following conditions:

a) he/she must notify the Company within twenty-four-(24) hours after he/she has been notified of his/her demotion that he/she has_elected to take the lay-off

b) any employee taking advantage of this privilege, will only be recalled to the classification held at the time that he/she elected to be laid-df

If any employee subStitutes, in any department, on any job, during the temporary absence of another employee, he/she shall receive the rate of pay for ~e said job or his/her regular rate of pay, depending on which is higher, or the rate of pay for the said job as agreed upon between the management and the employee prior to taking said job.

Seniority shall be maintained during a lay-off due to a lack of work for up to a maximum of twenty· four (24) consecutive months. Failure to retum to work after being recalled to work within ten (10) days after being notified by the Company (by a registered letter to the last known address) will result in the employee losing their seniOrity.


40

P.03/05

I


CLA-VAL CANADA LI.D

IX. GENERAL INFORMATION

A. NON-UNION STATUS

Cla-Val Canada is a non-union organization. No company is free of day-to-day problems, but we believe we have personnel policies and practices to help resolve problems rather than to resort to strikes and work stoppages. All of us must work together to make Cla-Val Canada a viable and healthy organization. This is the only way we can provide a satisfactory working environment.

Our sincere conviction is that the best and most rewarding employee-management system results from a direct relationship between management and employees. To facilitate this system the ClaVal Canada Limited Employees' Association has been established.

We encourage you to bring your problems to your Supervisor or a member of the Association Executive or any other member of management whom you feel can help you. We, in turn, promise to listen to your concerns with respect and do our best to solve your problems. Management accepts responsibility to provide favorable working conditions and competitive pay and benefits. We believe that you as an employee have the individual right to speak for yourself . . . . you do not need an outsider to speak for you.

B. DRESS STANDARDS AND PERSONAL GROOMING

In the interest of presenting a pleasing and professional image to our customers and co-workers, we ask that all employees observe good habits of grooming and personal hygiene. Employees are asked to use common sense with regard to their dress and appearance. Office employees and employees who have contact with customers and visitors are expected to present a professional image. All employees are asked to keep safety, company image and customer interaction in mind. Your supervisor will explain the proper dress requirements for your position.

C. CHANGE OF EMPLOYEE INFORMATION

It is important that employees keep the Human Resources Department informed of any changes in important information. Your correct home address, telephone number and emergency contact are essential. These are used for many purposes, including mailings to your home and emergency notifications. Keep in mind also that if your marital status changes, you may need to change benefit information.


41


CLA-VAL CANADA uAo X. CONCLUSION

IN CLOSING

Many Cla-Val Canada policies and Employee benefits have been treated only briefly in this Employee Handbook. If you have any questions or want more information, your Supervisor or Department Manager will be glad to fill in the details for you. The Human Resources Manager will also be happy to help you with questions or problems.


42

'

t

I t

I I

l t

I I I

I I I I

l ' I

~eceived: 9/30/02 11:53AM; ->E.I.S./O.C.B.I.; #528; Page 5

SEP-30-2002 11=55 -VAL CANADA CORP ._ e 905 563 4040


x. CONCLUSION

INCLOSING

Many ClaNal Canada policies and Employee benefits have been treated only briefly in this Employee Handbook. If you have any questions or want more information, your Supervisor or Department Manager will be glad to fill in the details for you. The Human Resources Manager will also be happy to help you with questions or problems. · ·


42

P.05/05

., CLA-VAL CANADA LAED

ACKNOWLEDGMENT AND AGREEMENT

This is to acknowledge that I have received a copy of the Cla-Val Canada ("the Company") Employee Handbook and understand that it sets forth the terms and conditions of my employment as well as the duties, responsibilities, and obligations of employment with Cla-Val Canada. I understand and agree that it is my responsibility to read the Employee Handbook and to abide by the rules, policies, and standards set forth in the Employee Handbook.

I also acknowledge that the Company reserves the right to revise, delete, and add to the provisions of this Employee Handbook All such revisions, deletions, or additions must be in writing and must be signed by the Human Resources Manager or the General Manager of the Company. No oral statements or representations can change the provisions of this Employee Handbook. I also acknowledge that terms and conditions of employment with the Company may be modified at the sole discretion of the Company with or without cause or notice at any time subject only to the provisions of the current or any subsequent Agreement between the Company and the Cla-Val Canada Limited Employee Association where applicable. No implied contract concerning any employment-related decision, term of employment, or condition of employment can be established by any other statement, conduct, policy, or practice.

I understand that the terms and conditions of my employment are found solely in this agreement and the current or any subsequent Agreement between the Company and the Cla-Val Canada Limited Employee Association where applicable. I also understand that this agreement supercedes all prior agreements, policies, rules or representations concerning my employment with Cla-Val Canada, subject only to the provisions of the current or any subsequent Agreement between the Company and the Cla-Val Canada Limited Employee Association.

Employee Signature Date

Employee Name [printed] Employee number

TO BE PLACED IN EMPLOYEE'S PERSONNEL FILE


43

OFFICE OF

SEP 2 0 ZOOZ COLLECTIVE bAiiuAINING

. INFORMATION

Received:

SEP-27-2002

J'

#498; Page 3

• 905 563 4040

CLA-VAL CANADA UMITED

The following memo is to be distributed to ~ ClaM Val Canada. Limited Employees as an Amendment to the Cls-Val Canada Liznited Employee Handbook. This memo should be review.ed· by aJI recipients and should. remain with the Employee Handbook issued on August 20, 2001.

AMENDMENT TO SECTION VI. 0. HEALTH&: SAFETY EFFECTIVE DECEMBER 1, 2001

As of December 1, 2001 the Company will .rcimbUtse an employee for up to $45.00 for approved ~afety shoes. This amount will be increased to $50.00 on December 1, 2002 and to $55.00 on December 1, 2003. As of December 1, 2001 employees will also be able to carryover safety shoe credits from one year to the next up to a ma."<.1mum of two years benefit The credits will not be able to be carried over for mo:re than one year and partial credits may not be caoied over to the llext year.

ADDITIONAL INFORMATION REGARDING: SECTION VII. D. 1 . .Medical and Health Insurance

EFFECTIVE DECEMBER 1, 2001

As of December 1, 2001 the .life insUtance benefit will be increased to $30,000. Oo December 1, 2002 the life insUtance will be .increased to $35,000 and on December 1, 2003 the life insurance will be increased to $40,000. The apptopriate Plan Documents Will be updated on the above noted dates to .reflect these adjustments to the Cla-Val Canada Ltd. Benefit Plan.

Issued December 3. 2001

P.03/04

Received:

SEP-27-2002 . .,

#498; Page 4 • 905 563 4040


WAGE INCREASES

Effective December 1, 2001 Oa-Val Canada Limited employees shall receive a 3% raise. Effective December 1, 2002 Cla-Val Canada Limited employees shall receive a 2.5% raise. Effective December 1, 2003 Cla-Val Canada Limited employees shall receive a 3% raise.

AMENDMENT TO SECTION VI. 0. HEALTH & SAFETY EFFECTIVE DECEMBER 1, 2001

P.04/04

As of December 1, 2001 the Company willreimb~e. an employee for up to $45.00 for approved safety shoes. Thi.s amount will be increased to $50.00 on December 1, 2002 and to $55.00 on Decembet 1, 2003. As of December 1, 2001 employees will also be able to carryover safety shoe Credits from one year to the next up to a maximum of two years benefit. The credits will not be able t:q be carried over for more than one year and partial credits may not be carried over to the next year.

ADDITIONAL INFORMATION REGARDING: SECTION VII. D. 1. Medical and Health Insurance

EFFECTIVE DECEMBER 1, zoot

As of December 1, 2001 the life insw:ance benefit will be increased to $30,000. On December 1, 2002 the life msurance will be increased to $35,000 and on December I, 2003 the life U:isurance will be increased to _$40,000. The appropriate Plan Documents will be updated on the above noted dates to reflect these adjustments 'to the Cla-Val Canada Ltd. Benefit Plan.

These changes with the Oa-Val Canada Limited Employees' Association were negoti.ated and witnessed by:

CLA-VAL CANADA LTD. GENERAL MANAGER!

EMPLOYEE ASSOCIATION PRESIDENT:

EMPLOYEE ASSOCIATION VICE-PRESIDENT:

EMPLOYEE ASSOCIATION SECRETARY:

Issued December: 3, 2001