Effective Date:

l Expiry Date:

'·

COLLECTIVE AGREEMENT

between

Schenker of Canada Limited

IDBI SCHENKER

June 18, 2014 June 17, 2017

- and -

TABLE OF CONTENTS

Article 1 - PURPOSE .......................................................................................... .......................... 4

Article 2 - RECOGNITION CLAUSE ...... ................. ............. ...... ..... ................................................ 4

Article 3 - MANAGEMENT RIGHTS ........................................................................................... . 5

Article 4 - HIRING OF EMPLOYEES ........... .......... ......................... ....... .. ........................... ............ 5

Article 5 - UNION SECURITY AND CHECK OFF .................... ............... .......................................... 6

Article 6 - SENIORITY ............ ................ ..... .... ..................... .. ........ .. ...... ....... ....................... ........ 6

Article 7 - WAGES .................................................................................................. .... ....... .......... 7

Article 8 - PAID HOLIDAYS ................................... .................. .... ................ ..... ........................ ..... 7

Article 9 - VACATION WITH PAY ...................... ... ... ........ ... .. .................................... ........... ... ....... 8

Article 10 - UNION REPRESENTATION ........................................................................................ ... 9

Article 11- LABOUR-MANAGEMENT COMMITTEE ...................................................................... 10

Article 12 - HOURS OF WORK ......................................................................................... ..... .. ...... 10

Article 13 - OVERTIME .................... .................. ........... .. .............. .. .. ........... ................................. 11

Article 14 - SENIORITY AND LAY OFFS ............... ....... .... ................................................................ 11

Article 15 - NO STRIKE/NO LOCKOUT PROVISION ....... ...................... .... ....................................... 12

Article 16 - NO DISCRIMINATION .......................... ............................ .... ... .............. ... ................... 12

Article 17 - DISCIPLINE AND DISCHARGE ................ ... .......... ............ .... .............. ... ... .................... 12

Article 18 - GRIEVANCE PROCEDURE ................................................................................. ......... 13

Article 19 - POLICY AND GROUP GRIEVANCES .......... ................................. ..... ..................... ........ 14

Article 20 - ARBITRATION ........... ........... ......... .... ..... ............................ ... ..... ........................... ..... 14

Article 21 - UNION EDUCATION ................................................................................................... 15

Article 22 - JOB POSTINGS ......................... .. ............. ......... ............................... ........ ... ................ 16

Article 23 - LEAVE OF ABSENCE ................ .............. ................ ... .... .... ......... ...................... ........... 16

Article 24 - HEALTH AND SAFETY ................ ... ........ ... ............................. ..... .. ...... ... ... ........ ........ ... 16

Article 25 - RIGHT OF VISITATION ................................................................................................ 17

Article 26 - SAFETY SHOE ALLOWANCE ........................................................................................ 17

Article 27 - BEREAVEMENT LEAVE ................ ................ ....................................... ... .................... . 17

Article 28 - JURY DUTY ................................................................................................................ 18

Article 29 - REPORTING PAY ...................................... ............. ..... ... .. .............. ... ... ...... ... .. .. ........ ... 18 "

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Article 30 - INSURED BENEFITS .................................................. ..... ... ....... .. .... ......... .................. .. 18

Article 31- PENSION PLAN, ....................................................................................................... .. 19

Article 32 - GENERAL ................................................................................................................... 19

Article 33 - EXPIRATION AND RENEWAL ........ .............................................................................. 19

LETTER OF UNDERSTANDING #1 ... ... ... ....... ........ .......... .. ......... .............. ........... .. ... .. ..................... 20

LETTER OF UNDERSTANDING #2 ............ ............ .. ................ .................... ................ ............... ..... 21

Schenker DRAFT Letter ................................................................................................................ 22

SCHEDULE A ................................................................................................................................ 23

SCHEDULE A (cont.) ...... ......... .. ....... .... ......................... .. ...... ... ....................... ....... .. ..................... 24

SCHEDULE B ......... .......... .. .................. .. ..... .................................... ....... ... ................................. ... 25

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between COLLECTIVE AGREEMENT

Schenker of Canada Limited (Hereinafter called the "Company")

-and-

SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU) LOCAL 2 (Hereinafter called the "Union")

ARTICLE 1 - PURPOSE

1.01 The parties agree that the aims of this Agreement are to promote and improve the industrial relations and economic climate between the employees and the Company; to secure efficient operation of the Company 1s business without interruption or interference with work; to provide fair wages, hours and working conditions for employees; to set forth the conditions of employment to be observed by the Company and the Union; and to provide an amicable method of settling any difference which may arise between the Parties.

ARTICLE 2 - RECOGNITION CLAUSE

2.01 The Company recognizes the Union as the sole and exclusive collective bargaining agent for all employees of Schenker of Canada Limited employed at 89 Walker Drive, Brampton, Ontario, save and except Supervisors, those above the rank of Supervisor, temporary or agency employees, office and clerical staff, and those for whom another union holds subsisting bargaining rights.

2.02 No bargaining unit employees will be laid off or suffer loss of regular wages as a result of supervisors or other employees excluded from the bargaining unit doing bargaining unit work.

2.03 Nothwithstanding the foregoing provisions of Article 2.01, it is understood and agreed that the Company may utilize temporary employees supplied by an outside employment agency to perform bargaining unit work at its location covered under this Agreement.

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2.04 Such persons shall not be covered under any of the provisions of this Agreement and the performance of bargaining unit work by such persons shall not be subject to any of the provisions of this Agreement.

2.05 Employees of employment agencies will not be used to displace permanent employees when there is work for regular employees.

2.06 The term employees as used in this agreement shall only refer to employees covered by the Collective Agreement.

2.07 In the event of the permanent discontinuance of the business at 89 Walker Drive, Brampton, the Company agrees to meet with the Union and negotiate severance pay for those employees with more than one (1) year of service who are not offered alternate employment at 89 Walker Drive or reasonable employment at another facility of the Company.

ARTICLE 3 - MANAGEMENT RIGHTS

3.01 The Union acknowledges that it is the exclusive right of the Company to manage its operations and direct its workforce. All rights which the Company has not expressly modified or restricted by a provision of this Agreement are retained and vested exclusively with the Company. These rights include but are not limited to

(a) maintain order, discipline and efficient operations;

(b) hire, discharge, transfer, lay-off, classify, promote, suspend or otherwise discipline employees, provided however, that any claim by an employee that he has been discharged or otherwise discipline without just cause may be the subject of a grievance and dealt with as hereinafter provided;

(c) determine the assignment of work, the size and the composition of the workforce, the equipment and methods to be used and the methods and techniques of work; and

(d) make from time to time reasonable rules and regulations to be observed by the employees which are not inconsistent with the provision of the Agreement.

ARTICLE 4 - HIRING OF EMPLOYEES

4.01 The Company shall have the sole and exclusive right to select and hire its employees. Within five (5) working days from the time of hiring an employee covered by this

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Agreement, the Company will send a written notice to the Union office on an appropriate form supplied by the Union stating the name, address, hourly rate, starting date and (job function) of such new employee.

ARTICLE 5 - UNION SECURITY AND CHECK OFF

5.01 The Company shall deduct weekly from all employees, the membership dues as prescribed by the Union and remit the same to the Union by the 15th day of the following month. Not more than one week's dues will be deducted from one weeks' wages of an employee in any one week.

5.02 The Company shall provide the Union with information related to the following matters for employees in the bargaining unit in January and July of each year: a list of employees sharing their names, addresses, telephone numbers and (classification) ranked according to seniority together with their rates of pay.

5.03 Sums so deducted by the Company shall be held in trust by the Company for the benefit of the Union.

5.04 The Union hereby indemnifies the Company and holds it harmless against any and all claims that may arise out of or by reason of any action taken by the Company for thp purpose of complying with the foregoing provisions of this article.

ARTICLE 6 - SENIORITY

6.01 Seniority is defined as the length of service in the bargaining unit and shall include service with the Company in a bargaining unit position prior to the recognition of the Union and during the period as an agency employee at the facility. Each employee shall be given a seniority date which shall be the same as the employee's date of hire with the Company.

6.02 To be eligible to be hired as a permanent employee of the Company, such employee must have worked for one (1) year as an employee of the temporary agency at the facility.

6.03 The Company will prepare and maintain seniority lists, revise and post them on the Company bulletin boards in January and July of each year, and a copy of such lists shall be forwarded to the Union Office.

6.04 Employees shall continue to accumulate seniority during vacations, approved leaves of absence, layoffs and maternity/parental leave or paternity leave, compensable injury,

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sick leave and union leave of absence subject to Article 7.05.

6.05 Seniority, once established for an employee, shall be forfeited and the employee's employment shall be deemed to be terminated under the following conditions:

(a) if he/she voluntarily quits;

(b) if he/she retires;

(c) if he/she is discharged for any cause and not reinstated through the grievance procedure;

(d) if he/she fails to report after a leave of absence without notifying the Company during the absence providing a valid reason for the absence;

(e) if he/she fails to report to work within five (5) working days after he/she has been sent a notice of recall by registered letter to his/her last known address;

(f) if he/she is laid off for a period of 12 months, or the length of his seniority, whichever is lesser;

(g) if he/she is absent from work for three (3) or more scheduled consecutive working days, without notifying the Company during the absence providing a valid reason for the absence; and

(h) if he/she uses a leave of absence for a purpose different from the purpose for which it was granted.

ARTICLE 7 - WAGES

7.01 The wage levels and wage rates are set out in Schedule "B".

ARTICLE 8 - PAID HOLIDAYS

8.01 The following shall be recognized as paid holidays and will be paid for on the basis of the employee's regular rate of pay multiplied by eight (8) hours.

New Years Day Family Day Good Friday Victoria Day

Canada Day Civic Holiday Labour Day Thanksgiving Day

Christmas Day Boxing Day

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8.02 In order to qualify for public holiday pay, the employee must work his/her full regular scheduled shift on each of the work days immediately preceding and immediately following the holiday concerned.

If an employee for good reason is late for work by no more than fifteen (15) minutes on his/her regularly scheduled shift before or after a holiday, said employee shall be considered to have worked his/her full scheduled shift for the purposes of holiday pay only.

8.03 If the holiday falls on a Saturday or Sunday, it will be observed on the sameday it is observed by the client.

ARTICLE 9 - VACATION WITH PAY

9.01 Vacation with pay shall be granted to all employees based on length of service as permanent employee with the Company, without regard to any period worked as an employee of a temporary agency.

9.02 The regular vacation period shall be from January 1st to December 31st:

Length of Service !Annual Vacation

Less than 4 years of service 0.83 days per month of service to a maximum of 10 days

4 years or more but less than 5 years 12 days

Length of Service Annual Vacation

5 years or more but less than 8 years 15 days

8 years or more but less than 10 years 16 days

10 years or more but less than 11 years 17 days

11 years or more but less than 12 years 18 days

12 years or more but less than 13 years 19 days

13 years or more but less than 14 years 20 days

14 years or more but less than 15 years 21 days

15 years or more but less than 16 years 22 days

16 years or more 23 days

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9.03 Vacation days shall be paid at the employee's regular hourly rate multiplied by eight (8) hours.

9.04 Employees are expected to take their vacation entitlement during the year. Employees may elect to carry .over up to two (2) weeks of vacation to be taken the following year.

For transition purposes, this carry over option is only available after 2014, ie., an employee may only seek a carry over of vacation commencing after the current vacation/calendar year.

An employee's carry over request must be made at the time of the Company's annual vacation scheduling (February), and approval of any such request is subject to the needs of the business. Carried-over vacation must be used by the end of March of the following year. The scheduling of carried over vacation will be consistent with current scheduling practices.

9.05 No payment will be made in lieu of vacation days not taken.

9.06 In the event that a holiday occurs during an employee's vacation, the employee shall receive another day off with pay.

ARTICLE 10 - UNION REPRESENTATION

10.01 The Company recognizes the right of the Union to elect or appoint one (1) Plant Chairperson and no more than three (3) Stewards, one steward on each shift. The Company shall recognize the right of the Union to elect or appoint alternate Stewards. The alternate Stewards are to be used only when no Stewards are present.

10.02 The number of Stewardes will be jointly reviewed by the parties' based on employee's population increases or decreases.

10.03 The Union agrees to keep the Company notified in writing of the names of the employees who are acting in the capacity of Stewards or as Plant Chairperson.

10.04 (a) A Steward's and Plant Chairperson's first obligation is to the performance of his/her regular duties and he/she shall not leave his/her regular duties, to investigate a grievance, attend a labour-management meeting, or attend a grievance meeting during working hours without first obtaining permission of the immediate Supervisor, providing a reason, and an estimate of the amount of time and reporting to his immediate Supervisor on his return.

(b) Prior to an employee dealing with a Steward during working hours, the employee

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must first obtain the permission of the immediate Supervisor providing a reason, an estimate of the amount of time and reporting to the Supervisor on his return.

(a) In accordance with this understanding, the Company will compensate such Stewards at their regular straight time hourly rate for time spent during their regular working hours. The amount of time in performance of such duties will not be abused.

10.05 The Company agrees to recognize and deal with a negotiating committee of up to three (3) employees, including the Plant Chairperson - in addition, the President of Local 152 may attend negotiations.

10.06 The Company shall make availablb to the Union one (1) bulletin board. The bulletin boards shall be used by the Union for posting notices relating to official Union business such as Union meetings; social, recreational, political and educational events; elections and appointments. The Company reserves the right to remove derogatory, offensive or otherwise inappropriate material.

10.07 During Company orientation for new employees hired for bargaining unit positions, the Company will provide the Union with an opportunity to meet with such employees. The meeting will be limited to no more than fifteen (15) minutes.

ARTICLE 11 - LABOUR-MANAGEMENT COMMITTEE

11.01 The Company and the Union agree to hold quarterly labour management meetings in order to discuss and amicably settle any difference, or other matter of mutual interest, although the parties agree that specific grievances shall not ordinarily be discussed in this forum without mutual agreement to do so. Either party shall have the right to place an issue on the agenda. The Plant Chairperson, the President of the local and two (2) Stewards may attend such meetings. The Company agrees to designate appropriate management representatives with sufficient authority to attend this committee.

ARTICLE 12 - HOURS OF WORK

12.01 The normal first shift shall be eight (8) hours daily within the hours of 7:00 a .. m. -3:00 p.m. The normal second shift shall be eight (8) hours within the hours of 3:30 p.m. - 11:30 p.m. The normal third shift, if necessary, shall be eight (8) hours within the hours of 11:00 p.m. to 7:00 a.m. The normal workweek shall be for forty (40) hours worked Monday through Friday.

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12.02 All employees on each shift shall receive two (2) paid twenty {20) minute rest/refreshment breaks. The first shift breaks shall occur during the first half of the shift, and the second shift break during the last four (4) hours of the shift.

12.03 No provision of this Article shall be construed as a guarantee of hours of work per day or per week.

12.04 The Company reserves the right to alter the hours of the shifts to meet the needs of the business upon two (2) weeks notice to the employees.

ARTICLE 13 - OVERTIME

13.01 Employees shall receive one and one-half (1 & 1/2) times their regular rate of pay for all hours worked in excess of forty-four {44) hours in a week.

13.02 In addition to holiday pay as per Article 4, employees shall receive one and one-half (1 1/2) times their regular rate for all hours worked on a paid holiday.

13.03 Overtime will be on a voluntary rotating and distributed as equally as practical among employees qualified to do the work. If there is an insufficient number of volunteers, then the qualified employees will be required to work in inverse seniority to a maximum of sixteen {16) hours per week.

13.04 Employees shall not receive more than one premium (i.e. overtime, holiday) for any hours worked.

13.05 Employees will receive the appropriate percentage of overtime worked during the year as vacation pay which shall be added to the vacation pay for the next year.

ARTICLE 14 - SENIORITY AND LAV OFFS

14.01 In the event the business necessitates a layoff of ten {10) working days or less (herein referred to as short-term layoffs), the Company will first attempt to minimize the impact to the bargaining unit through various methods (i.e. additional vacation and voluntary time off).

14.02 Whenever it becomes necessary to decrease the working force, employees with the least amount of seniority shall be laid off, provided those remaining employees with more seniority have the skill, qualification and ability and are willing to do the work available.

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14.03 Employees who have been laid off in accordance with the above provisions will be returned to work in order of seniority in which they were laid off provided they have the skill, qualification and ability and are willing to do the work available.

ARTICLE 15 - NO STRIKE/NO LOCKOUT PROVISION

15.01 In view of the orderly procedure established by the Agreement for the settling of disputes and the handling of grievances, the Union agrees that during the lifetime of this Agreement, there will be no strike, slow down or stoppage of or interference with work or production, either complete or partial.

15.02 The Company agrees that it will not order or authorize a lockout during the life of this Agreement.

ARTICLE 16 - NO DISCRIMINATION

16.01 The Company and the Union agree that there will be no discrimination or harassment exercised or practiced by the Company, Union or its representatives against any person because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, age, sex, marital status, sexual orientation, record of offences, family status or disability, as provided in the Ontario Human Rights Code as may be amended.

16.02 The Union and the Company agrees that there will be no discrimination or harassment exercised or practiced by the Union, the Company or their representatives against any person because the person chooses to be or not to be a member of the Union.

16.03 All grievance under Article 21.01 shall begin at Step Two and shall be handled with all confidentiality and dispatch.

ARTICLE 17 - DISCIPLINE AND DISCHARGE

17.01 No employee shall be disciplined or discharged without just cause. The parties agree that acts of violence, theft, excessive absenteeism/tardiness, violation of rules/regulations, documented poor job performance/productivity and insubordination are serious matters resulting in severe disciplinary action up to and including discharge.

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17.02 An employee who is suspended or discharged may file a grievance at Step Two of the grievance procedure within five (5) days after such suspension or discharge is served. An employee, who is discharged, shall have an opportunity to consult a Union Steward prior to leaving the workplace.

17 .03 Any discipline in an employee's file prior to the date of recognition shall be removed upon ratification of this Agreement.

17.04 When any Union Official is suspended, the Company will make a reasonable attempt to inform the Regional Representative. The Company will also make a reasonable attempt to ensure the Regional Representative is present during the termination of a Union Official.

17.05 An employee will be offered a Steward at any meeting with the Company which is disciplinary in nature. If a Steward is not available, an employee may select an alternate Steward to be present during the meeting.

ARTICLE 18 - GRIEVANCE PROCEDURE

18.01 A grievance shall be any dispute or difference arising out of the alleged violation, application, administration or interpretation of the provisions of this Agreement. Time limits may be extended upon mutual consent.

18.02 Reference to days in the grievance and arbitration procedure shall exclude Saturdays, Sundays and holidays.

18.03 Both parties agree that grievances are to be dealt with as expeditiously and efficiently as possible.

18.04 A Grievor, his/her Steward, or the Plant Chairperson shall not suffer any loss of earnings while attending grievance meetings during regular working hours.

18.05 It is the mutual desire of the parties that any complaint of an employee should be adjudicated as quickly as possible and it is understood that an employee has no grievance until he/she has first given his/her immediate Supervisor an opportunity of adjudicating his/her complaint. Should the issue not be resolved, the grievance may be put in writing and proceed to Step One within five (5) days of the incident-giving rise to the grievance except where an extension is mutually agreed to due to extenuating circumstance.

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Step One

The employee, supervisor and union steward shall meet within five (5) days of the submission of the grievance at Step One. The supervisor shall give his/her decision in writing with reason for such decision within two (2) days of the Step One meeting.

If the grievance has not been settled to the satisfaction of both parties it may proceed to Step Two.

Step Two

If the grievance is not resolved at Step One (1), the grievance shall be reduced to writing within five (5) working days after receiving the written decision from the Step One (1) and given to the Site Manager by the Steward.

The Site Manager, the Director of Human Resourses or designate and the Senior Director of Operations or designate shall then meet with the Steward, Griever, Plant Chair and Regional Representative within five (5) working days after receipt of the written grievance to resolve the issue.

The Site Manager shall give his/her decision in writing with reasons for such decision within ten (10) working days of the Step Two meeting.

If the grievance has not been settled to the satisfaction of both parties, the matter may be referred to arbitration.

ARTICLE 19 - POLICY AND GROUP GRIEVANCES

19.01 The parties agree that a policy grievance may be filed by either party when a dispute arises in the application, interpretation or administration of this Agreement. No policy grievance may be filed in respect of an issue which should properly be filed as an individual or group grievance. Where the Union files a policy grievance, an arbitrator has no authority to award monetary compensation to employees. All grievances under this Article shall be filed at Step Two of the grievance procedure.

19.02 When an alleged violation occurs which is of common concern to a group of employees, a group grievance may be filed at Step One.

ARTICLE 20 - ARBITRATION

20.01 If the grievance is not settled at Step Two of the grievance procedure, the matter may be referred in writing to arbitration and delivered to the other party. The request for

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referral to arbitration shall be made within ten {10) days of receipt of the written decision from Step Two. Time limits may be extended upon mutual consent.

20.02 The parties agree that only those grievances or disputes between the Company and/or the Union which involve an alleged violation of a provision of this Agreement or an allegation that has not been properly interpreted or applied may be carried beyond the grievance procedure into Arbitration under this Article.

20.03 The Company and the Union shall endeavour to choose a mutually acceptable Arbitrator, who shall hear the arbitration. Should the Company and the Union fail, within ten (10) days to agree on an Arbitrator, then an application should be made to the Ministry of Labour requesting the appointment of an Arbitrator forthwith. In the alternative to this procedure, either party may refer the outstanding matter to expedited arbitration.

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

20.05 The parties shall jointly and equally bear the expenses of the arbitration.

20.06 No matter shall be submitted or dealt with by an Arbitrator, which has not been previously and properly carried through all steps of the grievance procedure.

20.07 In no event shall the Arbitrator have the power to alter, modify, or amend any of the provisions of the Collective Agreement.

20.08 The time limits set out in Article 17 and Article 18 may be extended by mutual agreement.

ARTICLE 21 - UNION EDUCATION

21.01 The Company agrees to contribute Three Thousand ($3,000.00) Dollars per year of the Collective Agreement into the Union Education Fund. The Fund will be used exclusively for the purpose of the education in all aspects of trade unionism for the members of the Union.

21.02 The Union may request an unpaid leave of absence for an employee for union business. The Union will submit the request in writing to Management, as early as possible prior to the start of a leave period, but in no case shall it be less than five (5) days. The reasonable concerns of the business shall be taken into consideration by the Company when determining if such leave shall be granted. Such leave shall not be unreasonably denied.

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21.03 The Company agrees to continue to pay any employee absent from work on approved Union business which is not paid for by the Company as provided for elsewhere in the Agreement, and the Union shall reimburse the Company for such wages upon receipt of the monthly statement.

ARTICLE 22 - JOB POSTINGS

22.01 Should the Company establish a new classification, the Company will post such vacancy for five (5) working days and will state position(s) available, number of openings by position, and the shifts on which the openings exist. The Company will endeavour to fill all postings within two (2) weeks time period.

22.02 Selection of the successful candidate will be by bargaining unit seniority provided the employee has the skills, ability and qualification to perform the work.

ARTICLE 23 - LEAVE OF ABSENCE

23.01 An employee may be granted a personal leave of absence, in the sole discretion of the Company for up to sixty (60) calendar days. The employee must apply to his/her supervisor in writing at least fourteen (14) days in advance setting out the reason for the leave, and the last day worked. The Company will reply in writing within five (5) working days of receiving the request. The Company's granting of a request for leave shall not be a precedent for any future request by any other employee. The Company may waive the required fourteen (14) days notice in unusual compassionate circumstances.

23.02 Maternity and Parental Leave shall be as set out in the Employment Standards Act~ 2000.

ARTICLE 24 - HEALTH AND SAFETY

24.01 There shall be a joint labour-management health and safety committee. This committee shall be comprised of four (4) union representatives selected by the Union, one member from the facility will be recognized as a WSIB representative, and four (4) members of management for the committee.

24.02 The Committee shall meet at least once per quarter. All meetings shall be held during regular working hours and on company time, and shall be co-chaired by one (1) representative from the Union and one (1) representative from management.

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24.03 The role of the committee shall be to provide recommendations to the Company to correct unsafe conditions and the Company shall endeavour to correct unsafe conditions in a timely manner.

ARTICLE 25 - RIGHT OF VISITATION

25.01 Official representation of the Union with the permission of the Site Manager shall be permitted access to the facility and the bargaining unit work areas, where its members are employed, for the purpose of observing if the conditions of this Agreement are maintained, and for any other reasonable purpose arising out of the operation of this Agreement, provided there is no interference with the business of the Company. Such permission shall not be unreasonably withheld.

ARTICLE 26 - SAFETY SHOE ALLOWANCE

26.01 The Company will provide employees with a safety shoe credit of up to $200 (retail value), every two (2) years. However, this credit is only available for purchases of safety shoes from the "boot truck" (vendor), to be arranged by the Company.

ARTICLE 27 - BEREAVEMENT LEAVE

27.01 The Company will grant employees a three (3) day paid leave of absence upon the death of immediate family members. Immediate family members are the spouse, common law spouse, children, brother, sister and parents, grandparents, and parents­in-law.

27.02 The Company will pay a maximum of one (1) day at the employee's regular hourly rate for time lost on a regularly scheduled work day to attend the funeral or memorial of aunt, uncle, cousin, brother-in-law, sister-in-law, niece or nephew.

27.03 Pay for funeral leave is only for scheduled time lost during the employee's regular work week.

27.04 Upon request, the employee is required to furnish satisfactory proof of death within three (3) months following the death. If satisfactory proof is not received, the Company shall recover the monies paid.

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ARTICLE 28 - JURY DUTY

28.01 If an employee called for jury duty or is subpoenaed as a Crown witness, the employee must advise the Company as soon as possible. The Company will pay the difference between the employee's regular wages and any court payment.

28.02 A copy of the Summons to Juror and the Certificate of Juror's Attendance must be forwarded to the Company.

ARTICLE 29 - REPORTING PAY

29.01 An employee reporting for work for their scheduled shift, will receive at least four (4) hours work or, if no work available, will be paid four (4) hours at the employee's regular rate of pay, unless the employee has been properly notified not to report to work or if the employee has returned from an absence without prior notification to the Company.

29.02 This Article does not apply in the event the Company is unable to provide work due to flood, fire, act of God or other circumstances beyond the control of the Company.

ARTICLE 30 - INSURED BENEFITS

30.01 (a) The amount and eligibility for benefits referred to herein are subject to the terms and conditions of the policy or policies of insurance providing such benefits. Any dispute as to entitlement to benefits provided under the policy or policies of insurance is between the employee and the insurer. It is understood that the Company's obligation is limited to the payment of the appropriate premium.

(b) In the event any issues arise with the insurer involving entitlement to benefits including disability benefits, the Company will work with the Union to obtain information from the insurance company in an effort to clarify and/or correct the situation for the employee.

(c) A summary of insurance benefits is attached as Schedule "A".

(d) STD will commence after a three (3) day unpaid waiting period.

All employees will be entitled to four (4) sick days per calendar year, of which a maximum of three (3) days may be taken in any Quarter. There will be no carryover of unused sick leave credits.

The Employer will maintain the right to require a medical certificate where the Employer has reasonable grounds to do so.

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ARTICLE 31- PENSION PLAN.

31.01 The employees shall be eligible to participate in the Schenker Pension Plan, in accordance with its terms.

If eligible and enrolled in the Schenker Pension Plan, starting in January, 2015, the employee's initial annual contribution of 2% and the Company matching contribution of 2% will be paid by the Company. Thereafter contributions by the employee are voluntary. If an employee does not enrol in the Schenker pension plan, then that employee is not eligible for any Company contributions to the pension nor any pay in lieu thereof.

ARTICLE 32 - GENERAL

32.01 Employees are required to attend at work regularly and be ready to commence work at the start of their shift. When unable to do so, employees must notify their supervisor as soon as possible and, in any event, at least one (1) hour prior to the start of their shift.

32.02 Employees with perfect attendance (ie., no absenteeism and tardiness) in a calendar year shall receive a bonus payment the following February of two hundred and fifty dollars ($250).

ARTICLE 33 - EXPIRATION AND RENEWAL

This Agreement shall be in effect from June 18, 2014 to June 17, 2017 and shall continue from year to year thereafter, unless either party shall give written notice to the other party at least sixty (60) days prior to the expiration date of any succeeding year of its desire to alter, amend, or terminate this Agreement.

}t... DATED at Brampton this / J day of S'-ephm be C • 2014 .

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LETTER OF UNDERSTANDING #1

RE: VOICEMAIL

The Company will provide the Union with a voicebox to be accessed by employees and Union representatives only during non-working hours.

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LETTER OF UNDERSTANDING #2

The parties agree that any misunderstanding or dispute that may have existed with respect to the operation of Article 31- Pension Plan, over the life of the Collective Agreement which expired on June 17, 2014, has been fully resolved with the new Collective Agreement, effective from June 18, 2014, and specifically with the amendments to Article 31.

rm~ Company

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SCHENKER DRAFT LETTER

November 12, 2008 David Paul UNITE HERE [Address]

Dear David:

During the course of negotiations for the collective agreement, you requested that the Company advise concerning its policy with respect to employees of temporary agencies.

The Company acknowledges that there is an expectation of agency employees who have made a substantial commitment to the business (i.e. worked continuously at the Winners facility in excess of 6 months) and that after working continuously for a period of a year, provided there is sufficient work available to justify a permanent position, such agency employees will be hired as permanent employees of the Company.

The Company shares this expectation. It is the Company's policy that such agency employees will only be released from the building for a substantial reason including poor productivity and persistent absenteeism.

Should such an agency employee be released from the building, the Company, upon the request of the Union, will meet to discuss the reasons for the release.

It is understood and agreed that under no circumstances shall a grievance be filed in respect of the release of an agency employee from the building and an arbitrator shall have no jurisdiction in that regard.

The Company further confirms its policies that all agency employees that perform functions at the same level will be paid the same wage rate by the agency and an agency employee will not be released from the building for the purpose of replacing such employee with a new agency employee.

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SCHEDULE A 1. Life insurance

2. Optional Life Insurance (employee/spouse) 3. Dependant Life Insurance 4. Accidental Death and Dismemberment lnsurance3 5. Optional A.O. & D.:

6. Short Term Disability

Years of Service 3 months to 1 year 1 year to 3 years 3 years to 5 years

100% Salary 2 weeks 4 weeks 6 weeks

5 years to 7 years 8 weeks 7 years to 9 years 10 weeks 9 years to 10 years 12 weeks 10 years or more 15 weeks

2x annual basic earnings to maximum of $500,000 Maximum $350,000 (employee paid) Spouse $10,000 Equal to basic life insurance

Maximum $350,000 (employee paid)

Followed by 66w% 24 weeks 22 weeks 20 weeks 18 weeks 16 weeks 14 weeks 11 weeks

STD will commence after a three {3} day unpaid waiting period. 7. Long Term Disabiltiy 70% of monthly regular basic earnings to maximum of

$10,000 per month

8. Extended Health and Dental

Must satisfy definition of totally disabled and 182 day qualifying period Employee select from Options 1, 2, 3 To select Option 1, must have proof of spousal coverage Must select the same Option for Extended Health and Dental

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SCHEDULE A (CONT.) Extended Health The following table is a general overview of your coverage options options and the levels of coverage each one provides.

Option 1 Option 2 Option 3 Deductible n/a None None Prescription Drugs n/a 75% 90% Catastrophic Drugs n/a 100% after $3,750 in 100% after $1,500 in

out-of-pocket out-of-pocket expenses expenses per person per person

Dispensing Fee n/a $7 $7 Maximum Hosp ita I n/a Simi-private 100% Private 100% Convalescent Care n/a 75% 90% Chronic Care n/a $25 per day $25 per day Vision Care n/a $100 per 2 years $250 per 2 years

(covered at 100%} {covered at 100%} Hearing Aids n/a $300 per 4 years $250 per 4 years Out of 100% 100% 100% Province/Country Emergency Coverage Paramedical n/a $750 per year $1,000 per year

{combined for all) (combined for all Private Duty Nurse n/a $10,000 per year $10,000 per year Ambulance n/a Unlimited Unlimited Accidental Death n/a Unlimited Unlimited Orthopaedic shoes n/a 1 pair per year up to a 1 pair per year up to a & Orthontics $400 max $400 max Medical supplies n/a 75% 90% Diagnostic n/a 75% 90%

Dental O~tions Option 1 Option 2 Option 3

Deductible n/a None None Fee Guide n/a Current Current Basic n/a 75% 100% Resto rat rive n/a 75% 100%

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SCHEDULE B

WAGE LEVELS AND WAGE RATES

June December June December June December 18th 18th 18th 18th 18th 18th

2014 2014 2015 2015 2016 2016

Level I

(General Workers/Cleaners $13.85 $14.15 $14.45 $14.75 $15.05 $15.35

Level II

(Lay up/AC/MC/Walkie} $15.05 $15.35 $15.65 $15.95 $16.25 $16.55

Level Ill

(Forklift/Turet/Reach/Team $15.25 $15.55 $15.85 $16.15 $16.45 $16.75 Leads/C.D./Trainer}

Employees listed in attached appendix shall be "red-circled" for life of this Agreement or until their respective rates are in line with Schedule B rates in this renewal Agreement. These employees shall receive lump sum payments in June and December of each year, in an amount equivalent to the scheduled rate increases, until their respective rates are at the new Schedule B rate or until the next schedule rate increase or portion thereof achieves the new effective rate in Schedule B. These employees will receive the lesser of the scheduled rate increase or the amount necessary to achieve the effective new rate in Schedule B, as the case may be, and their rate will no longer be frozen and they will no longer be eligible for a lump sum payment.

In accordance with the above, Employees whose current rates exceed the job rate will receive

lump sum payments for the period, as follows:

June 18, 2014 $312.00

Progression

Dec 18, 2014 $624.00

June 18, 2015 $936.00

Dec 18, 2015 $1,248.00

June 18, 2016 $1,560.00

Dec 18, 2016 $1,872.00

Employess hired after the date of ratification at Levels II and Ill shall be paid the appropriate

Level I rate.

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Following six (6) months of employment, the employee shall be paid fifty per cent (50%) of the difference between the Level I rate and the applicable rate for the level.

Following twelve (12) months of employment, the employee shall receive the applicable rate forthelevel.

Temporary Tranfers

Employees who are temporarily transferred to a lower-rated job shall continue to be paid their regular rate of pay. Employees who are transferred to a higher-rated job for a period of eight (8) consecutive hours or more shall be paid the higher rate for all hours worked in the higher classification.

Shift Premium

Employees shall be paid an additional twenty-five cents ($0.25) per hour for scheduled shift hours worked between 3:00 p.m. and 7:00 a.m.

Team Leads

Team leads shall receive an additional twenty-five cents ($.25) per hour in recognition of additional duties/responsibilities.

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