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TABLE OF CONTENTS

Article Page

I Purpose ........................................ 3

11 Recognition ..................................... 3

III Union Security and Dues ........................... 4

IV Management Rights ............................... 4

V Union Representation & Activity ............... 5

VI Strikes and Lockouts .............................. 6

VIl Grievance Procedure .............................. 6

VIll Arbitration ...................................... 7

IX Discharge and Discipline 7

X Seniority ...................................... 10

XI Job Postings .................................... 11

XII Lay-Off and Recall ............................... 11

XIII Transfers ...................................... 12

XIV Notification of Lateness & Absence .................. 12

XV Hours of Work .................................. 13

XVI Overtime ....................................... 13

XVII Leaves of Absence ............................... 16

XVIII Paid Holidays ................................... 18

XIX Paid Vacations .................................. 18

XX Health and Safety ................................ 19

XXI Welfare Plans ................................... 19

XXII Correspondence ................................. 22

XXIII General ....................................... 22

XXIV Pay Cheques .................................... 23

XXV Wages ........................................ 23

XXVI Duration and Termination .......................... 23 Schedule "A" - Hematite .......................... 25 Letter of Understanding (Scope of Skills) ........................... 26 Letter of Understanding (Flex Shift Agreement) 27 Letter of Understanding (Facility relocation)……………… 29 Letter of Understanding (Harassment)…………………….. 30 Letter of Understanding (Steady Shifts)………………………. 31

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Letter of Understanding (Safety/Status Meetings)…………………… 33 Bulletin re: Extruder Operator Upgrades……………………. 34 Letter of Understanding (Union Education Fund) 37

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THIS AGREEMENT Entered into as of the 10th day of September, 2007

BETWEEN:

PAVACO PLASTICS INC. (Hematite Manufacturing, Division) Guelph, Ontario

OF THE FIRST PART - and -

UNION OF NEEDLETRADES, INDUSTRIAL & TEXTILE EMPLOYEES AFL-CIO-CLC

_OF THE SECOND PART

ARTICLE I PURPOSE 1.01 This agreement is entered into by the parties hereto in order to provide for orderly collective bargaining relations between the company and its employees. It is the desire of both parties to co-operate in maintaining a harmonious relationship between the Company and its employees, and to settle amicably differences or grievances which may arise from time to time hereunder in the manner hereinafter set out.

1.02 When revisions are required during the life of this Agreement, due to new work system initiatives, such revisions will be outlined in a Letter of Understanding signed by the appropriate Company representatives and no less than three (3) members of the Union Executive Committee along with the National Representative. ARTICLE 11 RECOGNITION 2.01 The Company recognizes the Union as the sole and exclusive collective bargaining agent for all employees of the Company in the City of Guelph, save and except Supervisors, Office and Sales staff, Technical staff and any students including co-op students employed during school vacation period or work periods.

2.02 Employees excluded from the bargaining unit will be permitted to do bargaining unit work for the purposes of trouble shooting, training and instruction, set-ups, product and process development and refinement and research and development, and for filling in on lunch breaks and rest periods, and temporary vacancies when bargaining unit personnel are not available to perform the required work.

It is further understood that no bargaining unit employee will lose regular hours of work including overtime due to employees exempt from the bargaining unit performing bargaining unit work.

2.03 The Company is committed to providing continuous employment opportunities for all employees while at the same time striving to attain its objective of remaining a viable organization in the marketplace.

Considering the fact that outsourcing of production work may be required in some cases to attract and maintain business, the Company will review with the Union, in advance, its plans and reasons surrounding a particular contract. The Union will be given the opportunity to provide input on these plans, including alternative suggestions for performing the work. The consultations will take place over a period of 45 days to a maximum of 16 hours. The time periods of 45 days and 16 hours may be extended by mutual agreement of the parties. Should a resolution be reached in less than 45 days and/or 16 hours the remaining time period may be waived.

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ARTICLE III UNION SECURITY AND DUES

3.01 The parties hereto mutually agree that any employee of the employer covered by this agreement may become a member of the union if the employee wishes to do so and may refrain from becoming a member if the employee so desires.

3.02 The parties agree that there will be no intimidation, discrimination, interference, restraint or coercion exercised or practiced by either of them or their representatives or members because of the employees membership or non- membership in the Union.

3.03 The Union agrees that, except as provided in this Agreement, they shall not distribute or present pamphlets, circulars or petitions or other such activities on the Company's property without the approval of the Company's representative. Such permission will not be unreasonably denied. Unite-Here Ontario Council Local 2508 sanctioned union business related issued petitions may be circulated on the Company property provided that activity does not interfere or disrupt production and/or the operations of the Company. 3.04 (a) The Company agrees that it will deduct such dues as may be assessed by the Union on each employee

and will remit the money so deducted to the U.N.I.T.E., whose receipt therefore, shall be considered as a discharge to the Company for the amount so deducted.

(b) Such dues shall be deducted from the employee's pay on a weekly basis and remitted to the Union on a monthly basis for all dues deducted in the previous month. The Company will at the time of making such remittance specify the employees from whose pay such deductions were made. In addition, the Company agrees to deduct from new employees who have elected to join the union an initiation fee equal to one (1) months dues. Union dues will be deducted from day one of employment and such deductions are non-refundable.

(c) The Company agrees to include on the income tax (T4) slips, the amount of union dues paid by each employee during the year being reported on. The Union shall notify the Company in writing of any change in the amount of union dues thirty (30) days prior to the effective date of such change.

(d) Employees who because of religious objection cannot support the union or any other trade union may apply to the Union in writing, explaining their objection and requesting that their deducted monies be forwarded to a registered Canadian charitable organization. The letter must be supported by another member of the religious organization who is not a family member or a relative and further supported by a letter from the minister, priest, or head of the religious organization. This charitable organization will be selected by mutual agreement between the employee and the Union.

(e) Employees who are on approved Union business leave will continue to be paid their normal hourly rate of pay, this to include all applicable premiums during such leave. The Union agrees to reimburse the Company for all payments made to employees on such leave upon receipt of the Company’s invoice.

ARTICLE IV MANAGEMENT RIGHTS 4.01 The Union acknowledges that it is the exclusive function of the Company to:

(a) maintain order, discipline, and efficiency, and otherwise direct its working forces;

(b) hire, promote, demote, transfer, lay off, suspend, discipline or discharge for proper cause, any employee subject to the right of the employee to submit a grievance;

(c) make, enforce, and alter, from time to time, reasonable rules and regulations to be observed by employees. Any changes or alterations of present rules already in force, as stipulated in Article IX, will

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be by mutual consent. Any additions to the present rules or new rules will be discussed with the Union prior to implementation and the Company further agrees to give any and all input by the Union proper consideration;

(d) manage the industrial enterprise in which the Company is engaged, and without restricting the

generality of the foregoing, to determine the products to be manufactured, methods of manufacturing, kinds and locations of machines and tools to be used, process of manufacturing, the engineering and designing of it's products, the control of material and parts to be incorporated in the products produced;

(e) require new employees to have medical examinations at the Company's expense by a physician or medical specialist who will be mutually agreed to by the employee and the Company;

NOTE: All employees may be required to provide medical documents requested by the insurance carriers, or W.S.I.B.

(f) the Company will pay for all weekly indemnity or long term disability medical forms requested by the Insurance Company for the same illness or injury to a maximum of $35.00 per form and $200.00 per annum.

(g) employ outside contractors to perform work in or about the plants. No employee in the bargaining unit shall be laid off or lose regular hours of work or overtime because an outside contractor is used to perform work that is normally performed by the employee as per the Scope of Skills. This does not apply to situations where employees are not able to complete the required work within the appropriate time frame to meet production requirements.

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

ARTICLE V UNION REPRESENTATION AND ACTIVITY 5.01 The Company will recognize the six (6) Union Executive Committee listed below, and nine (9) Union Stewards, of which at least one (1) must be from each of the shifts President Vice President Treasurer Secretary Sergeant at Arms Chief Steward

The President of the Union shall have his preference of day shift or remain on his/her current shift. The shift selection shall be allowed once during his/her term of office. It may be made either upon appointment to the office or he/she may maintain his/her existing shift and make a selection to change shift once during his/her tenure. After his/her term the President shall go back to his/her original shift and job unless remaining on current shift is done through proper collective agreement procedures. 5.02 The Company recognizes the right of the Union to select employees who are on the active payroll to serve on the Executive Committee and as Stewards. The Union will exert every effort to select employees who are mature and responsible. The Executive Committee, along with a full-time representative of the Union, will meet with the Company to discuss matters which are properly the subject of negotiations concerning amendments to the current agreement and proposals for the renewal and modification of the agreement.

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5.03 The Stewards and WSIB Rep may assist employees in presenting their complaints and or grievances to the designated representatives of the Company in accordance with the grievance procedures. The Company will compensate the Stewards, WSIB Rep and / or members of the Executive Committee for time lost during their regular and / or off shift when presenting complaints, grievances and for attending other Company approved meetings (compensation will be at straight time and include any applicable shift bonus).

5.04 It is understood that Union Representatives have their regular work to perform on behalf of the Company and, if it is necessary to service a grievance during working hours, they will not leave their work without obtaining the permission of their Supervisor. Such permission shall not be unreasonably withheld. If they have to go to a department other than their own, they must obtain the permission of the Supervisor of that department and notify them of the reasons therefore. On resuming their regular work, they will advise their Supervisor of their return.

5.05 Employees will be permitted to place calls, using the plant public telephone, to a Union Committee member or Steward at their home, when a serious problem arises during working hours and there is no Union representative present, except where there has occurred serious insubordination or an assault or fighting, or where an employee or employees in question are intoxicated or under the influence of drugs.

For these serious problems, the Steward will be permitted to place calls to a Union Committee member at their home for information purposes, after the employee has been removed from the premises.

For such purposes, the Company will provide the necessary change for local calls, or, if not available, allow the use of the office phone in private, if possible.

5.06 The Company shall provide the Union with information relating to all written warnings, suspensions, discharges, job postings, and the results of plant surveys recorded.

This information will be forwarded to Local 2508's Recording Secretary within four (4) days.

5.07 The Company shall provide bulletin boards for use of the Union at appropriate locations upon which the Union shall have the right to post notices of interest to the Union and the employees, after having obtained the Company's approval for the posting of such notices.

5.08 Bargaining Committee Members will be paid their regular wages for the purposes of attending negotiations for renewal of the collective agreement. This payment will be made at straight time rates of pay. This payment will be made for all days spent in negotiations for up to twelve meetings.

ARTICLE VI STRIKES AND LOCKOUTS

6.01 The Union agrees that there will be no strikes during the term of this Agreement.

6.02 The Company agrees that there shall be no lockout during the term of this Agreement.

6.03 The Company shall have the right to discharge or otherwise discipline employees who violate 6.01.

ARTICLE VII GRIEVANCE PROCEDURE

7.01 The Parties to this Agreement are agreed that it is of the utmost importance to adjust complaints and grievances as quickly as possible. Accordingly, no grievance shall be arbitrable where the circumstances giving rise to it occurred or originated more than five (5) working days before the filing of the grievance. The five (5) day time limit shall start from the day on which the employee became aware of the facts giving rise to the grievance. A grievance is defined as any difference arising out of the interpretation, application, or violation of this agreement.

7.02 STEP I

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It is generally understood that an employee shall give their immediate Supervisor an opportunity to adjust the complaint or grievance. If discussing the matter fails to render a satisfactory settlement then the employee with the guidance of a steward of their choice, if on shift and available, will reduce the grievance to writing and submit it to their immediate supervisor. The Supervisor shall render their decision within two (2) working days. Failing satisfactory settlement or a response from the Supervisor within the specified time, then:

STEP 2

The written grievance will be taken up between the Steward, a member of the Union Committee and the Group Leader or a designate within two (2) working days. Such meetings will take place at 3:30 p.m. or a mutually agreed time. Any rescheduling of this time will be with the mutual agreement of both parties. The aggrieved may be present at the request of either party. The Group Leader or a designate shall render their decision within two (2) working days. Failing a satisfactory settlement or a response from the Group Leader or a designate within the specified time, then: STEP 3 The matter may be taken up within four (4) full working days between the Union Committee Members and the Human Resource Manager or a designate. The aggrieved may be present at the request of either party. A representative of the Union may be present at this step at the request of either party. The Human Resource Manager or a designate shall render their decision in writing within three (3) working days. Any grievance signed off by the Union must be signed off by no less than five (5) Executive Members.

STEP 4

Failing satisfactory settlement at Step 3 or a response from the Company within the specified time, the grievance may be submitted to arbitration. If arbitration is not invoked within a period of twenty (20) working days, the grievance will be considered to have been settled or abandoned.

7.03 A Union Policy grievance, a group grievance or a Company grievance may be submitted to the Company or the Union, as the case may be, within three (3) working days of the circumstances giving rise to a grievance. A meeting between the Company and the Union shall be held within five (5) working days of the presentation of the written grievance. If the matter is not disposed of at that meeting, the grievance may be submitted to arbitration within twenty (20) days of such meeting and Article VIII shall apply. It is expressly understood that the provisions of this paragraph may not be used by the Union to bypass any of the provisions stated in clause 7.02.

7.04 A group grievance is a grievance by more than one (1) employee where the circumstances giving rise to the grievance are identical.

7.05 It is agreed that all time limits in Articles VII and VIII are mandatory and the only extensions of time limits will be by the Union and Company themselves, notwithstanding the section of the Labour Relations Act, which refers to an Arbitrator's authority on time limits.

Any and all time limits fixed by this article may at any time be extended by written agreement between the Company and the Union.

ARTICLE VIII ARBITRATION

8.01 In the event that no accord is reached through the procedure herein provided in Article VII, the parties shall endeavor to agree upon a single Arbitrator to whom the grievance or grievances shall be referred for settlement.

8.02 In the event of failure to agree, after twenty (20) days, either party can request the appointment of an Arbitrator by the Office of Arbitration for the Province of Ontario. The Arbitrator will hear and determine

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the difference or allegation and shall issue a decision and that decision is final and binding upon the parties and upon the Company and any employee affected by it.

8.03 The Arbitrator shall not be authorized to make any decision which is contrary to or inconsistent with the provisions of the Agreement. The decision of the Arbitrator shall be binding on both parties.

8.04 The compensation and expenses of the Arbitrator shall, in all cases, be borne equally by the Company and the Union.

8.05 It is expressly understood that the Arbitrator shall not have jurisdiction to award interest on any monies payable by virtue of their award.

ARTICLE IX DISCHARGE AND DISCIPLINE

9.01 If an employee including a probationary employee feels that the employee has been dealt with unfairly, discharged, or disciplined without just cause and the employee wishes to invoke the grievance procedure, the employee shall, within five (5) days of receiving a Notice of Discipline or Discharge present a grievance in writing to their Supervisor and the matter shall be dealt with in accordance with Step 2 and the balance of the grievance procedure.

9.02 A discharged or suspended employee shall be given an opportunity to confer privately with a union representative of their choice, if a union representative is at work at the time of Notice of Discharge or Suspension and before leaving the plant, unless there is a threat to personnel or property. At this point a union executive member will be notified immediately.

9.03 In determining any discharge or any other disciplinary grievance, the Arbitrator shall have the authority to:

(a) affirm the Company's action and dismiss the grievance;

(b) set aside the penalty imposed by the Company and restore the aggrieved to their former position with or without compensation; or

(c) vary or alter the penalty imposed by the Company or make such other determination as the Arbitrator, in their discretion, may deem justified.

9.04 The following conduct will result in an employee being disciplined by receiving a verbal warning:

Group I

(a) Unauthorized absence, excessive tardiness. (Absenteeism and tardiness will be treated as separate issues for disciplinary purposes.)

(b) Failure to report absence prior to shift start without reasonable excuse;

(c) Leaving work area before proper time; Group 11

(d) Harassment of another employee;

(e) Entering the plant or Company property at times other than those specified as scheduled working periods without reporting to the Supervisor. This includes entering at the request of the Company or to pick up wages or medical documents or Union related activity and other such permissible reasons;

(f) Careless workmanship or poor productivity;

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(g) The use of profane or abusive language toward another employee with intent;

(h) Smoking in prohibited areas;

(i) Creating or contributing to unsanitary conditions or poor housekeeping not related to product quality; (j) Failure to report a work-related injury immediately after occurrence; (k) Reading of newspapers, magazines and listening to personal radios in production areas. These items

may be at the work station but not for the purpose of being read during working hours; (l) Failure to return Company items; (m) Failure to wear required personal protective equipment. (Safety glasses may be removed at the work

station desk while completing production paper work, in all areas away from the desk glasses must be worn).

9.05 The following conduct will result in an employee being disciplined by a written warning:

(a) Quitting work or leaving the plant before or during regularly scheduled working hours without permission;

(b) Entering areas of the plant other than where work is assigned, without permission or other justifiable reasons;

(c) Horseplay, which does not result in personal injury;

(d) Failure to observe any safety rule;

(e) Unauthorized use of Company telephones;

(f) Borrowing tools, equipment or materials belonging to the Company without permission;

(g) The accumulation of two (2) verbal warnings from Group I or from Group 11.

9.06 The following conduct will result in an employee being disciplined by a one (1) day suspension: (a) Operating a forklift truck without training and Company certification,

(b) Insubordination, including refusal to do work assigned;

(c) Destruction of property of others;

(d) Falsification of personnel, production or other records; with intent

(e) Sleeping during working hours, (other than during lunch break, but not in an operating part of the plant at any time);

(f) The accumulation of two (2) written warnings.

9.07 The following conduct will result in discharge from employment:

(a) Entering the plant under the influence of intoxicants or narcotics and / or possession and / or the use of the same on Company premises;

(b) Theft of property of the Company or others;

(c) Fighting on Company property; (d) Striking a supervisor or fellow worker; (e) Disclosure of confidential information to unauthorized persons; (f) The accumulation of four (4) written warnings in a twelve (12) month period;

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(g) The accumulation of two (2) suspensions in a twelve (12) month period.

9.08 It is understood and agreed that the misconduct identified in Articles 9.04, 9.05, 9.06 and 9.07 is not a comprehensive list of the misconduct which will result in discipline or discharge. The Company may impose discipline or discharge for just cause in other circumstances as well.

9.09 It is agreed that twelve (12) months after being issued that disciplinary report will be removed from the employee file and will be disregarded in reference to any future discipline. No disciplinary record will be rolled back as the result of this removal.

9.10 The Company may substitute a lesser penalty from that which is provided for in this article where in its opinion, the employee has established sufficient extenuating circumstances. The employee is required to establish sufficient extenuating circumstances within fifteen (15) working days from the notice of discipline or discharge.

ARTICLE X SENIORITY

10.01 An employee is considered on probation until the employee has completed seventy-five (75) days worked (this will include weekends worked, four (4) hours or more to be considered as a full shift, plus Paid Holidays).

The probationary employee shall acquire seniority after completing the probationary period dated from the most recent date of hire.

Should a Student, having been hired as Summer help, request to be considered for full-time, permanent employment, their seventy-five (75) days probationary period shall start with the date of acceptance into such employment, and be completed as per the above.

10.02 (a) The Company and Union acknowledge and agree that the purpose of the probationary period is to permit the Company to assess the potential, capability and general suitability of a new employee for continued employment with the Company. The standard which will be used for deciding whether the new employee is to be retained as a non-probationary employee is an assessment of the potential, capability and general suitability of the new employee for continued employment; and,

(b) Where the Company, at any time during the probation, determines that in its' sole opinion that the probationary employee does not have the potential, capability or general suitability for continued employ- ment, it shall have the right to discharge such probationary employee provided that it does not act in bad faith or in a discriminatory manner.

(c) It is further understood that the probationary employee shall have the right to Union representation from day one of employment including recourse to the grievance and arbitration procedure.

10.03(a) Seniority will be recognized on a plant wide basis in all cases other than lay-off.

(b) A seniority list will be posted by the Company for a period of thirty (30) working days within one (1) month after the signing of this Agreement. After such posting, the list shall become final as to the employee's names and dates designated on it, except as to any employee who has disputed the accuracy of their seniority date, while the list is posted, in which case, it will be subject to an adjustment under the Grievance Procedure if the date of hire is in controversy. The seniority list will be brought up to date every six (6) months and two (2) copies will be supplied to Local 2508's Recording Secretary.

10.04 An employee's seniority will be lost and the employee deemed to be terminated if the employee:

(a) Quits the employ of the Company for any reason. In this case the employee shall have up to 24 hours to rescind his/her resignation.

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(b) Is discharged and is not reinstated through the Grievance Procedure or Arbitration;

(c) Is laid off for a period exceeding twenty four (24) consecutive months;

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

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

(e) Fails to return to work following the expiration of an authorized leave of absence, unless the reason is satisfactory to the Company or the leave of absence has been utilized for purposes other than those for which the leave of absence was granted;

(f) Is absent for three (3) consecutive working days without notifying the Company or is absent for this period without a reason that is satisfactory to the Company;

(g) Is continuously absent due to illness or injury in excess of twenty- four (24) consecutive months;

(h) Is continuously absent due to a W.S.I.B. injury in excess of twenty- four (24) consecutive months;

(i) Retires.

ARTICLE XI JOB POSTINGS

11.01 Any vacancy in a job classification, in excess of sixty (60) calendar days, and vacancies in newly created positions will be posted on a Company wide basis for a period of three (3) working days.

11.02 (a) In selecting employees for such positions, senior employees shall be given preference where in the Employer's opinion, the present skill, ability and qualifications of the applicants are relatively equal. The posting procedure shall apply only to the original vacancy and one (1) further vacancy. Vacancies which cannot be filled by this method may be filled by outside hiring.

Except for experience gained by 11.02 (b), the company will not consider the experience gained by an employee who has been temporarily transferred to a job which would later become a posted vacancy.

The Company shall only use the criteria as stipulated in Article XI when selecting the successful applicant. (b) When an employee has a desire to move from one classification to another, prior to any job posting, the employee must submit a request for temporary transfer. Employee requested transfers must be in writing and will be valid or referenced for no more than twelve (12) months. This written request must be on the four part form with copies to: the Union, employee, the Company and the Supervisor. Such request may enable the employee to acquire the basic skills necessary to qualify for a posting in that department.

A temporary transfer would only take place if the Company determines there is a job opening. Prior to filling a temporary transfer, the Company will review all requests for temporary transfer and give senior employees who have requested temporary transfers preference in the selection process.

During the temporary transfer pay will be as per article 13.03 whether requested by the employee or the Company.

(c) Successful applicants, excluding probationary employees covered under Articles 10.01 and 25.01, shall receive a trial period with appropriate instruction for up to thirty (30) working days. During the trial period the employee or Company may return the employee to their previous position if either party chooses.

If the employee is returned to their original classification during the trial period, the employee(s) being bumped back to their original classification will return to their original shift and rate of pay and a domino effect will take place in reverse order.

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(d) It is agreed that if work is required on a shift that has a vacancy that has to be filled, a temporary or permanent transfer will first be offered to the senior employee in that classification who normally performs the work. This clause is applicable to the Straight Shifting Agreement.

(e) The company will not train employees for future full time bargaining unit positions until a posting for such position has been made available through the posting procedures. 11.03 The Company shall determine the timing of all moves approved under this Article based on the needs of the operations. It is further agreed that this process will be done in a reasonable amount of time.

ARTICLE XII LAY-OFF AND RECALL

12.01 (a) In all cases of increases or decreases in the work force, senior employees shall be entitled to preference over junior employees, within their plant and Shift, provided that the senior employee has the skill, ability and qualifications in the Employer's opinion, to satisfactorily perform the available work without further training or experience.

12.01(b) In cases of a layoff an employee shall be allowed to exercise their seniority under this clause to bump to the shift of their preference.

12.02 It is agreed that student and probationary employees will be laid off first.

12.03 Recalls will be made in inverse order of layoff, subject to the recalled employee having the skill, ability and qualifications in the employers opinion to satisfactorily perform the available work without further training or experience. Recalled employees will be returned to their original shift and position immediately wherever possible or by the beginning of the next regular scheduled work week.

Once employees on lay off have been recalled those employees shall return to the positions they held prior to the layoff.

12.04 Except for lay-offs due to machinery breakdowns, fire, flood, power outage and other acts of God, the Company will notify employees to be laid off and Union representatives as soon as reasonably possible but at least twenty-four (24) hours in advance of the lay-off. A list of laid off employees shall be sent to the Local Secretary.

It is agreed that the Union President, Vice President and Treasurer will have preferred seniority during their term in office. This applies to lay-offs only.

ARTICLE XIII TRANSFERS

13.01 An employee will only be permanently transferred pursuant to Article XI (Job Postings) and Article XII (Lay-offs). 13.02 The Company will have the right to temporarily transfer an employee. A temporary transfer shall not exceed sixty (60) days without the consent of the employee. For casual absence one (1) to three (3) days in the Material Handling Classification the transfer clause will not be applicable unless all other options have been exhausted.

13.03 Where an employee is temporarily transferred to a position in another classification, the employee shall receive the rate of the classification to which the employee is transferred or their regular rate, whichever is greater.

13.04 No employee shall be transferred to a position outside the bargaining unit without their consent. Where an employee is transferred to a position outside the bargaining unit, the Company shall have the right to return the transferred employee to the bargaining unit and the transferred employee may elect to

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return to the bargaining unit without loss of seniority any time during a period equivalent to sixty (60) working days from the date of transfer. Upon the expiry of a period equivalent to sixty (60) working days from the date of transfer, a transferred employee shall lose all seniority and if returned to the bargaining unit, the employee shall return as a new employee. An extension beyond the sixty (60) working days may be granted with the joint consent of the employee, the Union and the Company.

13.05 Newly hired employees shall be restricted from transferring to another classification for the duration of the probationary period.

13.06 New employees shall not be hired where there are employees on lay-off having the skill, ability and qualifications, in the Employers opinion, to satisfactorily perform the available work.

ARTICLE XIV NOTIFICATION OF LATENESS AND ABSENCE

14.01 The employee shall report all absences by telephone to the Supervisor or designate at least two (2) hours before the commencement of the shift whenever practical.

14.02 The employee shall report all lateness by telephone to the Supervisor or designate prior to the commencement of the shift whenever practical.

ARTICLE XV HOURS OF WORK

15.01 The standard work week will be forty (40) hours. Nothing in this agreement shall be construed as a guarantee by the Company of a minimum hours of work per week. 15.02 Employees covered under this Agreement shall be entitled to a paid twenty (20) minute lunch break which shall fall between the third (3rd) and fifth (5th) hour of the shift. The Supervisor shall designate the time to be taken as lunch break.

15.03 When an employee is called back to work after the conclusion of the regular shift and after leaving the Company premises, the employee shall receive a minimum of four (4) hours work or four (4) hours pay at one and one- half (I 1/2) times their regular rate of pay.

If a maintenance employee is called in to repair a breakdown the employee will be required to repair the breakdown prior to leaving. If no other breakdown occurs, which is of an emergency nature, the employee will be allowed to leave and be paid four (4) hours for the call in at the applicable rate of pay.

The pay rate for call in on Saturdays, Sundays, Statutory holidays and paid vacation time will be as per article 16.01.

15.04 An employee in the following job classifications, Extrusion Operator A, B, C, Vacuum Forming Operator A, B, Material Handler and Maintenance A, B and C, who is to be relieved at the conclusion of their shift, may be requested on a voluntary basis to remain at their work station until relieved by the person who is scheduled to do so, or for a maximum period of sixty (60) minutes.

The Union agrees that employees shall co-operate in remaining at work in these instances.

To ensure continuous production coverage when the voluntary basis has been exhausted without results, the Company shall have the right to insist that an employee remains at their work station until relieved by the person who is scheduled to do so, or for a maximum period of sixty (60) minutes.

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15.05 Where an employee wishes to leave Company premises during the paid lunch break described in clause 15.02, the employee shall first obtain permission from their Supervisor, such permission not to be unreasonably withheld, and shall also clock out when leaving and clock in upon their return.

15.06 The Company agrees to conduct a survey to determine if the members of the bargaining unit are in favour of changing from fixed shifts to a rotating shift arrangement. The Company will take the results of the survey under advisement and will make a decision regarding any change taking into consideration the results and all other factors relating to the orderly and efficient operation of the plant.

ARTICLE XVI OVERTIME

16.01 Overtime will be paid as follows:

(a) after eight (8) hours per day at the rate of time and one half (1 ½);

(b) all time worked in pursuant to clause 15.04 at the rate of time and one half (1 ½);

(c) time worked on Saturday at the rate of time and one half (1 ½));

(d) time worked on Sunday at the rate of double time (2);

(e) time worked on Statutory Holidays as defined in clause 18.01 at the rate of double time (2) in addition to the employee being paid for the holiday.

(f) Notwithstanding the above, it is understood that hours of work and overtime entitlement may be

changed by the provisions provided below.

It is understood that any changes to the hours of work and rates of overtime pay will involve a thirty (30) day consultation process which will address implementation of changes to the hours of work and rates of pay. The consultation process will be mandatory and any arrangements or agreements arrived at during this process will be by mutual consent. The process will involve a minimum of eighty (80) hours of meetings during the thirty (30) days or a shorter time period if an agreement is reached. However failure to reach agreement will result in the Company exercising its rights to change the hours of work as per Article IV of the Collective Agreement.

Following implementation of any changes to the hours of work, either party can invoke a review. Such a review shall be in accordance with the thirty (30) day consultation process as described above.

(g) The parties agree that when the Company is contemplating combining any job classifications, or establishing new job classifications, that it will utilize the consultation process as outlined in Article 16.01(f). However, for the purpose of 16.01(g) the consultation process will be fifteen (15) days and the meeting time will be up to (40) forty hours.

16.02

(a) The working of overtime shall be on a voluntary basis, except for clause 15.04 above, when the voluntary basis has been exhausted without results.

(b) The procedure by which planned overtime will be scheduled will be as follows: 1) A sign-up sheet will be posted by Wednesday for employees to sign indicating that they are

interested in working overtime. The sign-up sheet will stay posted for a minimum of twenty-four (24) hours. Failure to sign up for overtime will mean that overtime will be deemed to have been refused. Employees off work (i.e. ill, on holidays, etc.) will directly inform the day shift supervisor by telephone no later than Wednesday at 12:00 PM noon if they desire to work planned overtime. All relevant information with respect to any restrictions the employee provides to the company shall also be supplied to the Union by the employee, if the employee elects to do so, with respect to this article.

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The Company will not modify a job in order to permit employees on light duty or modified duty to work overtime.

2) Based on the employees who have signed the sign up sheets;

i) A selection will be made from employees:

a) By classification and, b) By low hours and, c) By their own shift and, d) By seniority if recorded overtime hours are equal.

Assign the overtime and continue if required,

ii) A selection will be made from employees who have indicated their willingness to work outside of their classification:

(a) By seniority outside classification;

(b) By their own shift and;

(c) Qualified to perform the work.

Assign the overtime and continue if required,

iii) A selection will be made from employees:

a) By classification from off shift and,

b) By low hours.

Assign the overtime and continue if required,

iv) A selection will be made from employees who have indicated their willingness to work outside their classification Off-Shift:

a) By seniority and, b) Qualified to perform the work.

Assign the overtime and continue if required,

v) If a vacancy still exists in the work area required based on a lack of qualified employees on the sign up sheet, employees on that shift will be asked: a) By seniority within the required Classification on their own shift, then b) By seniority outside the required Classification on their own shift.

Assign the overtime.

No employee will work sixteen (16) hours of overtime in the same calendar day, unless all other options from the sign-up sheet have been exhausted.

(3) If overtime is available on both Saturday and / or Sunday, employees will be scheduled on their own shift whenever practical.

(4) Planned overtime will be finalized and posted Thursday at 4:00 P.M.

(c) The procedure by which unplanned overtime will be scheduled on the first half of a shift in which a vacancy has occurred will be as follows, (for a full shift the procedure will commence at (ii))

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i.) By asking the employee, in the required classification, performing the work in that work cell on the current shift to stay and if more than one employee is performing the work then by low recorded hours, then ;

ii.) By the employee in the classification required, with the lowest hours, then; iii.) By the senior, employee qualified to perform the work. iv.) Employees will be asked once, if the employee does not have a definite answer the company will

allow the employee two hours to respond based on the circumstances.

Assign the overtime.

(d) The procedure by which unplanned overtime will be scheduled on the second half of a shift in which a vacancy has occurred will be as follows:

i) By asking the employee in the required classification performing the work in that work cell on the upcoming shift to come in early and if more than one employee is performing the work then by low recorded hours. Supervision will ask employees that work in the work cell the previous day when scheduling this overtime.

ii) By the most senior employee in the classification required, and, employees scheduled to return to work the next day (for any reason) will be called in order of seniority.

(iii) By the senior employee qualified to perform work, and employees, scheduled to return to work the next day (for any reason) will be called in order of seniority.

(e) The Company will maintain up to date records of overtime worked. Examples: Two (2) hours of overtime at 1.5 x base rate will equal three (3) hours pay and three (3) hours recorded.

Eight (8) hours of overtime on Saturday at 1.5 x base rate will equal twelve (12) hours pay and twelve (12) hours recorded.

Eight (8) hours of overtime on Sunday at 2 x base rate will equal sixteen (16) hours pay and sixteen (16) hours recorded.

All overtime hours paid to an employee will be recorded. Further, once overtime is confirmed by the employee verbally for unscheduled overtime or once the Overtime Schedule is posted with the employee's name the hours will be recorded if the employee works or does not work the overtime.

The records of overtime hours will be zeroed out on January 1, May 1 and September 1 of each year.

(f) Where an error is made by the Company in assigning overtime as per (b), (c), and (d), the employee will be compensated with payment on the next pay cheque. Where the assignment of overtime is under dispute, the settlement will be handled through the grievance procedure.

(g) If an employee does not want to work unplanned overtime they will identify in writing their intentions to the company. The employee can alter these intentions by giving notice in writing to the Company.

(h) When overtime is required in Shipper/Receiving the following procedure shall be followed at all times in future. Step 1 The shipper/receiver shall be offered the overtime first. The Shipper/Receiver on another shift by seniority will then be offered the overtime; failing that,

Step 2 The Shipper/Receiver ‘B’ shall be offered the overtime.

Step 3 The employee on the shift required, who is qualified to perform the work and who has the lowest number of hours of overtime.

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Step 4 The employee who is qualified to perform the work-shifts A & C, in order of lowest hours of overtime worked until all employees are asked.

Step 5 The employee on shift who holds a valid tow motor license and who has the lowest number of hours of overtime.

Step 6 By seniority to the employee who holds a valid tow motor license – shifts A & C in order of lowest hours of overtime worked until all employees are asked.

Qualified means holding a valid towmotor licence and having performed the work to be done previously.

In the event that all employees refuse the overtime, the company shall have the right to appoint a salaried employee to perform the work required without hindrance be it by the grievance procedure or any method of complaint.

16.03 A Meal Allowance of $5.00 will be paid to employees who work more than two (2) hours of unscheduled overtime immediately following their regular shift. This does not apply to any hours worked on Saturdays, Sundays or Holidays. The meal allowance will be paid to the employee at the end of their regular shift or before the employee goes on break.

16.04 If an employee works a Saturday or Sunday and finds it necessary to take time off during the upcoming two week period they may apply for a leave of absence equal to the number of Saturdays and Sundays worked. The Supervisor may, subject to operational requirements grant such leave, any such leaves, if granted, will be on a first request basis.

16.05 Should overtime be scheduled during the week, Monday to Friday, employees on layoff will be offered the opportunity for recall to cover the scheduled overtime, prior to scheduling employees for overtime hours.

In instances of casual absences, employees on layoff may be offered the opportunity to cover the vacancy prior to working other employees on overtime.

ARTICLE XVII LEAVES OF ABSENCE

17.01 Personal Leave. The Company may, at its discretion, grant a leave of absence without pay to employees for personal reasons satisfactory to the Company, provided that such leave does not interfere with the Company's operation and provided that any request for leave of absence is made in writing at least two (2) weeks prior to the start of such leave, where possible, and the reason for the leave of absence is stated in some detail. The Company will respond to such request within five (5) working days.

An employee who fails to return to work at the expiry of the leave of absence shall be considered to have voluntarily quit, as stipulated in Article 10.04 (e).

17.02 (a) Bereavement Leave. A paid leave of absence of three (3) days will be granted to an employee who has acquired seniority, at regular hourly rate, who has suffered the loss of an immediate member of their family. The term 'immediate' includes the following members: Spouse / Common-Law Spouse Parents / Parents-In-Law Brother / Sister Child / Stepchild Step-Parents Grandparents Grandchildren

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Children of Common-Law Spouse Parents of Common-Law Spouse Legal Guardian

(b) An employee will be granted one (1) days pay at their regular rate for the loss of: Brother / Sister-In-Law Son / Daughter-In-Law Grandparents-In-Law

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

NOTE: It is understood that "in-law" relationships will be broken by divorce but not death of the blood relative who established the "in-law" relationship, unless and until the "in-law" relative or employee remarries.

17.03 (a) Jury Duty Leave. In the event an employee is required to serve on a jury and therefore unable to work the regular shift, that employee shall be paid the difference between the amount paid for such service and their current straight time hourly rate for such time lost. Employees shall present proof of attendance and the amount of pay received.

In the event an employee is subpoenaed to appear as a witness, the employer will pay an employee's lost time up to and including a two (2) day maximum, per year provided proof of attendance has been provided.

(b) If an employee is called for jury duty, the employee must notify the Shift Supervisor within twenty-four (24) hours after receipt of notice of election for duty.

17.04 Pregnancy Leave. An employee is entitled to an unpaid leave of absence for pregnancy in accordance with the Employment Standards Act. 17.05 It is agreed the Company will grant leave of absence to members from the Local to attend union conventions, schools, and / or seminars. In order to avoid disruption of production, not more than three (3) will be chosen per occurrence, of which no more than two (2) individuals shall be from the same shift.

ARTICLE XVIII PAID HOLIDAYS

18.01 For the purposes of this Agreement, the following thirteen (13) days will be recognized annually as holidays:

New Year's Day Labour Day Good Friday Thanksgiving Day Victoria Day Christmas Day Canada Day Boxing Day Civic Holiday

Three float holidays to be scheduled between Christmas and New Years.

Effective September 11, 2002 add Easter Monday.

18.02 The Company will pay each active employee, who has been employed in the Company for three (3) months or who has completed their probationary period, eight (8) hours pay at their regular hourly rate for each such holiday provided the employee works their full scheduled shift immediately preceding and immediately following the holiday. An employee will not be disqualified for

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payment for such holiday if the employee is absent on either or both the qualifying days with the permission of the Company or as a result of illness (in which case a doctor's certificate will be required), jury duty, bereavement in the immediate family or a reason satisfactory to the Company. Payment for Probationary Employees shall be in accordance with the Ontario Employment Standards Act.

18.03 If any of the above holidays fall within an employee's vacation period, the employee shall receive another day off with pay immediately following their vacation. ARTICLE XIX PAID VACATIONS

19.01 All employees in the active employment of the Company shall be entitled to an annual vacation, provided the employee has performed work for at least thirty (30) calendar days during the qualifying period of July I st of the preceding year and June 30th of the current year.

19.02 (a) An employee having less than one (1) year of service as of June 30th of each year shall receive vacation pay, in accordance with the provisions of the Employment Standards Act and the equivalent days vacation.

(b) An employee having more than one (1) but less than five (5) years of service with the Company as of June 30th of each year shall be entitled to two (2) weeks vacation with pay. Payment for the two (2) weeks of vacation shall be calculated at the rate of four percent (4%) of the employee's gross earnings for the qualifying period, excluding vacation pay received during the period.

(c) An employee having more than five (5) but less than ten (10) years of service with the Company as of June 30th of each year shall be entitled to three (3) weeks vacation with pay. Payment for the three (3) weeks of vacation shall be calculated at the rate of six percent (6%) of the employee's gross earnings for the qualifying period, excluding vacation pay received during the period.

(d) an employee having more than ten (10) but less than eighteen years of service with the Company as of June 30th of each year shall be entitled to four (4) weeks vacation with pay. Payment for the four (4) weeks of vacation shall be calculated at eight percent (8%) of the employee’s gross earnings for the qualifying period, excluding vacation pay received during the period.

(e) an employee having more than eighteen (18) years of service with the Company as of June 30th of each year shall be entitled to five (5) weeks vacation with pay. Payment for the five (5) weeks of vacation shall be calculated at ten percent (10%) of the employee's gross earnings for the qualifying period, excluding vacation pay received during the period.

(f) employees having completed five (5), ten (10) or eighteen (18) years service prior to June 30th will receive six percent (6%) (for five (5) years of service), eight percent (8%) (for ten (10) years of service) or ten percent (10%) (for eighteen (18) years of service) respectively of their gross earnings for the previous twelve (12) month period ending June 30th as applicable.

19.03 An employee shall be paid their vacation pay on the cheque or direct deposit following the day/week in which he vacation is taken. At the end of June, the vacation accumulator will be recorded for all employees. The accumulator will be divided by the number of days the employee is entitled to for vacation to establish a per day rate of vacation pay entitlement. This amount will be paid out to each employee on the regular pay day for the vacation days taken, one day’s accumulator for each day of vacation applied for and taken.

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19.04 An employee leaving the employ of the Company shall be paid the vacation pay to which the employee is entitled from the preceding July 1st up to and including their last day of employment.

19.05 Vacation time is not cumulative and must be taken by the conclusion of the vacation year.

19.06 (a) The Company reserves the right to schedule an annual vacation shutdown and employees shall take their vacation during the shut- down period. Any employee who is required by the Company to work for emergency reasons shall take their vacation at a time acceptable to the employee and the Company. Any employee who has vacation days in excess of the annual vacation shutdown shall take such holidays anytime during the vacation year as will be mutually agreeable to the Company and the employee.

Should the Company decide not to have an annual vacation shutdown the vacation selection will be done by seniority, by shift, by classification.

(b) The Company will define positions and wage rates by position for work to be conducted during the annual vacation shutdown. Employees will be selected from a sign-up sheet based on seniority, by wage rate for the work to be performed during the shutdown period. Employees working outside of their classification will be paid the wage rate for the job being performed. The employee must be qualified to perform the work.

ARTICLE XX HEALTH AND SAFETY

20.01 The Company shall make reasonable provisions for the safety and health of employees during working hours. The Union agrees to assist the Company in maintaining the proper observation of all safety and health rules. The Company and the Union will form a Health and Safety Committee composed of three (3) Company and three (3) Union representatives. The Committee's function will be to promote safety and industrial hygiene in the plants. It shall make monthly inspections of the plants and equipment and hold regular monthly meetings. This Committee will act in accordance with the Occupational Health and Safety Act of Ontario R.S.O. 1990 in all matters pertaining to the health and safety of employees. Should this legislation be replaced at some time the Company and Committee will implement the more stringent of the two languages. The employees will be paid their regular rate /premium rate of pay for time spent regarding their health and safety duties.

20.02 The Company will supply employees with work gloves, hearing protection, safety glasses and face masks, where required. The protective clothing and safety equipment will remain the property of the Company. The Union will co-operate with the Company by insisting that employees make use of such equipment for their safety and protection. 20.03 Safety shoes must be worn by all bargaining unit employees in all areas of the plant during working hours. The Company will reimburse the employee, effective September 11, 2004, up to one hundred and thirty five ($135.00) per annum towards the purchase of safety shoes. Effective September 11, 2005 increase to one hundred and forty five dollars ($145.00) and effective September 11, 2006 increase to one hundred and fifty ($150.00) dollars.

20.04 In the event that an employee is injured in the proper performance of their duties, that employee shall, to the extent that the employee is required to stop work and receive treatment, be paid wages for the remainder of their shift. In order to receive such payment, the employee must immediately report such injury to their Supervisor.

20.05 In the event that an employee is injured on the job and as the result of such injury, the employee is sent home or to a hospital, transportation shall be supplied by the Company.

ARTICLE XXI WELFARE PLANS

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21.01 The Company will establish a benefits committee consisting of members of management, members of the Union and representatives of the benefits provider to meet on a regular basis to answer questions or concerns from employees regarding coverage of the benefit plan.

The Company will pay one hundred percent (100%) of the cost of the benefits described below for all employees, (except students and part-time employees), who have completed three (3) months of continuous employment. The terms and conditions upon which such benefits are provided shall be as are stipulated in the benefit contract between the Company and the carrier and as described in the employee's Group Benefits Booklet. These benefits are as follows:

(a) Group Life Insurance Plan

(b) Weekly Indemnity Plan (c) Long-Term Disability Plan (d) Extended Health Insurance

1) Drug Benefit

2) Vision Care 3) Supplementary Hospital 4) Supplementary Health Care

(e) Dental Plan

(f) Ontario Health Insurance Plan 21.02 Group Life Insurance Plan

(a) Maximum benefit eighteen thousand dollars ($18,000) for all hourly- rated employees.

(b) Benefits reduced by fifty percent (50%) at age sixty-five (65).

(c) Terminates at age seventy (70).

21.03 Weekly Indemnity Plan

(a) Benefits shall be up to sixty-six and two-thirds percent (66-2/3%) of earnings with maximum weekly benefits being equal to two-thirds (2/3) of the maximum insurable earnings or seven hundred and fifty dollars ($750.00) which ever is greater in force under the Canada Employment Insurance Plan.

(b) Qualifying period is after three (3) days of disability or none if disability is due to an injury caused solely by accident, violent and external means, and disability began within thirty (30) days of the initial injury.

(c) Benefit period is fifteen (15) weeks but not beyond age seventy (70).

21.04 Long-Term Disability Insurance

(a) Benefits shall be sixty-six and two-thirds percent (66-2/3%) of earnings up to a maximum monthly benefit of one thousand dollars ($ 1,000.00).

(b) The qualifying period shall be thirty (30) weeks.

(c) Termination is on sixty-fifth (65th) birthday.

21.05 Extended Health Insurance

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(a) Drug benefits shall be first based on Schedule 1.0; a thirty-five cents ($0.35) deductible Drug Plan with prescription drugs listed on the Ontario Drug Benefit Formulary and second on Schedule 2.0; for those prescription drugs not covered by Schedule 1.0; a generic drug formulary will be substituted with a five dollar ($5.00) maximum dispensing fee deductible paid by the Company.

(b) Vision Care benefits shall be two hundred and sixty-five dollars ($265.00) maximum reimbursement which includes eligible expenses for examination by an optometrist and eye glasses / contact lenses once in every twenty-four (24) months. Effective September 11, 2005 vision care benefits shall be two hundred and ninety dollars ($290.00) maximum reimbursement which includes eligible expenses for examination by an optometrist and eye glasses/contact lenses once in every twenty-four (24) months. Effective September 11, 2006 it shall increase to three hundred ($300.00) dollars.

Children ages one year to twelve years shall be entitled to the above reimbursement on prescription change up to a maximum of two times in a twelve month period.

(c) Supplementary hospital benefits shall be one hundred percent (100%) reimbursement for difference between public ward and semi-private accommodation for each day of hospitalization.

(d) Supplementary health care benefits shall be one hundred percent (100%) reimbursement for eligible expenses as prescribed by a physician.

(e) Termination shall be at the members' seventieth (70th) birthday.

(f) No benefit is payable for the portion of the expense for which reimbursement is provided by a government plan.

21.06 Dental Benefits

a) Preventative benefits will be one hundred percent (100%) reimbursed.

b) Effective September 11, 2001, major coverage for crowns, inlays, replacement of same, standard dentures, denture related surgical services, maintenance of same, accidental injury to sound natural teeth to a lifetime maximum of one thousand and five hundred dollars ($1,500.00), and in addition to such, orthodontic coverage to a lifetime maximum of two thousand dollars ($2,000.00), (subject to benefit contract restrictions and 50/50 co-payment).

Effective September 11, 2005, major coverage for crowns, inlays, replacement of same, standard dentures, denture related surgical services, maintenance of same, accidental injury to sound natural teeth to a lifetime maximum of one thousand and seven hundred and fifty dollars($1,750.00) and in addition to such, orthodontic coverage to a lifetime maximum of two thousand two hundred and fifty dollars ($2,250.00) subject to benefit contract restrictions and 60/40 co-payment. Probationary employees are not entitled to this coverage during the first year of employment.

c) The applicable fee guide is the current fee guide for the treatment identified by the Canadian Dental Association Procedure Codes.

d) The annual maximum claim per person is one thousand seven hundred and fifty dollars ($1,750.00). Effective September 11, 2008 the annual maximum claim per person shall be one thousand eight hundred dollars ($1,800.00). Effective September 11, 2009 the annual maximum claim per person shall be two thousand dollars ($2,000.00).

e) Probationary employees are restricted to a maximum of ($1,000.00) one thousand dollars coverage during their first year of employment.

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Effective September 11, 2005 the maximum shall be one thousand seven hundred and fifty dollars ($1,750.00).

f) Routine treatment will not be more often than once every nine (9) months. This treatment includes oral examinations, cleaning teeth and bite-wing x-rays.

g) Periodonic treatment will not be more often than once every six- (6) months to a maximum of eight (8) units per year.

h) Fluoride treatment will be restricted to patients under eighteen (18) years of age.

21.07 Ontario Hospital Insurance Plan

Basic hospital and medical (O.H.I.P.).

21.08 An employee is ineligible to receive weekly indemnity benefits and vacation pay at the same time. The vacation pay period must be scheduled outside the period for which weekly indemnity is being paid. 21.09 Entitlement under any of the above plans is subject to the specific provisions of the insurance policies and pension contract. The Company may select the carrier or carriers of its choice or may change carriers or self-insure if it sees fit; however, the level of benefits provided shall be equivalent to all those outlined in Article XXI. 21.10 Health Tax The employer agrees to reimburse all employees for the full cost of the Ontario Health Premium or any similar premium or tax introduced in the future. Effective September 11, 2004 the employer agrees to pay to the employee two thirds of the amount of the Ontario Health Premium and effective January 1, 2005 the employer will pay to the employee the full amount of the Ontario Health Tax as directed by the Government. ARTICLE XXII CORRESPONDENCE

22.01 Except wherein otherwise provided, any notice which either party desires or is required to give to the other shall be given by prepaid registered mail or courier and FAX as follows:

If given to the Company: Pavaco Plastics Inc. 659 Speedvale Avenue West Guelph, Ontario N1K 1E6 Attention: Human Resources Manager

If given to the Union: UNITE HERE Ontario Council 460 Richmond Street West 2nd Floor Toronto, Ontario M5V 1Y1 cc: Recording Secretary, Local 2508 By in-house mail system

ARTICLE XXIII GENERAL

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23.01 The Company shall have printed copies of the Collective Agreement available to all employees within (3) months of ratification. The Company shall provide all probationary employees with a copy of the Collective Agreement within one (1) week of hiring.

23.02 The Company shall pay to maintenance employees a tool allowance of one hundred and fifty dollars ($150.00) per year to be paid on January 30 of each year. Probationary maintenance employees shall be paid the tool allowance at the completion of their probationary period.

23.03 Employees who are currently classified will not be asked to be tested for their own classification that they currently hold.

23. 04 It is agreed between the parties that a Training Advisory Committee will be established by the Company to assist in the development of the Company's training activity.

The Committee will be composed of employees that are actively involved in the training of other employees. Management will consult with the Committee on the appointment of Trainers.

The Training Advisory Committee will provide input into the training curriculum, testing, Scope of Skills and trainee progress. The Company will determine employee progress through the training program and advancement to specific job classifications.

It is agreed that any changes to the existing and//or future Scope of Skills will first immediately be given to the Union.

23.05 It is agreed between the parties that for the purposes of TS16949 and ISO14001 the Company can test to verify the effectiveness of training. It is also agreed that the method and content of the training that will be utilized will be created through consultation, discussion and input through the Training Advisory Committee prior to the training. It is further agreed that no discipline and/or demotion will occur as a result of the test outcome. Retraining may be required as a result.

23.06 For any work uniforms that the Company purchases it will seek out and purchase union made garments.

ARTICLE XXIV PAY CHEQUES

24.01 (a) Where there occurs a shortage in an employee's pay cheque of fifty dollars ($50.00) gross or more, the Company will rectify the shortage by issuing a separate cheque for the shortage within one (1) day of the shortage being reported. Shortages of less than fifty dollars ($50.00) gross will be rectified by adding the amount owing to the employee's next pay cheque.

(b) Pay cheques will be made available no sooner than start of shift Wednesday for the 4:00 P.M. - 12:00 A.M. shift; Thursday for the 12:00 A.M. - 8:00 A.M. shift and Thursday for the 8:00 A.M. - 4:00 P.M. shift. Notwithstanding the above it is understood that pays may be delayed due to the timing of Statutory holidays and / or situations beyond the Company's control with regards to its payroll service.

(c) Effective on the ratification date of this contract all new employees will be required to use direct deposit to receive their pay.

ARTICLE XXV WAGES

25.01 The minimum rates of pay for job classifications including shift premiums are set out in Schedule A attached, effective from ratification of this contract. The Company reserves the right to increase the rate of pay for any job classification in response to changing economic conditions. The Union will be notified one (1) week prior to any changes to classifications by correspondence to Local 2508's Recording Secretary.

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25.02 Wage rates for probationary employees will be at seventy-five ($0.75) per hour below the rates for each classification.

25.03 Shift premium rates shall be thirty-five cents ($0.35) for the afternoon shift and fifty cents ($0.50) for the evening shift.

ARTICLE XXVI DURATION AND TERMINATION

26.01 This agreement shall be effective from September 11, 2007, and shall continue in full force and effect until September 10, 2010, and thereafter shall be automatically renewed and remain in force from year to year from its expiry date unless within the period of sixty (60) days before the agreement ceases to operate, either party gives notice in writing to the other party of its desire to bargain with a view to the renewal with or without modification of the Agreement.

26.02 On receipt of such notice, the parties shall convene a meeting at a mutually convenient time and bargain in good faith to endeavour to reach an Agreement.

IN WITNESS WHEREOF each of the parties hereto has caused this agreement to be signed by its duly authorized representatives as of the 11th day of September 2007.

FOR THE COMPANY- FOR THE UNION: Dale Zdravkovic John Knight Jerry Jean Gary Panton Chris Hasselman Gerard Lizotte Kim St. Jean

BJ Cardy

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LETTER OF UNDERSTANDING BETWEEN UNION OF NEEDLETRADES, INDUSTRIAL,

AND TEXTILE EMPLOYEES LOCAL 2508

AND

PAVACO PLASTICS INC.

Re: Scope of Skills

It is agreed between the parties that all classifications which have, or will have a Scope of Skills will be posted on bulletin boards in the Company. All Scope of Skills will be updated as changes occur.

DATED- September 11, 1998

Re-signed this 8th day of August, 2007. For the Company For the Union Dale Zdravkovic Chris Hasselman Jerry Jean Gary Panton Gerard Lizotte Kim St.Jean John Knight BJ Cardy

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LETTER OF UNDERSTANDING

BETWEEN

UNION OF NEEDLETRADES, INDUSTRIAL, AND TEXTILE EMPLOYEES LOCAL 2508

AND

PAVACO PLASTICS INC.

Re: Hematite Manufacturing Flex-Shift Agreement

BACKGROUND

It is the intention of the Company and the Union to improve working conditions and productivity by allowing employees to arrange the shifts they work on. This is being done to improve employee's health, reduce absenteeism and improve the productivity of the plant. It is recognized that this flexibility to arrange flexible shifts is a privilege and not a right and that it will be managed according to certain eligibility criteria and rules.

Eligibility Criteria:

In order for employees to participate in arranging their own shifts, the following criteria must be met;

1) It is agreed that the following must be agreed to by all the following parties, the Company, the Union and the employees who are affected.

2) The employees involved in creating their flex shift must have equivalent skill and ability in the Company's opinion in order to perform the work.

3) The employees involved in creating their flex shift must each agree to the arrangement and be committed to it, prior to making the request to the company in writing with all those involved signing the request. All three (3) shifts must be covered.

4) It is at the Company's discretion to approve the request. For any request that is denied a reasonable explanation will be provided. Company approval must be given in writing before the shifts are changed.

Operating Rules:

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1) The approval to create a flex shift must be given by the employees original Supervisors.

2) Probationary employees are not eligible for this program unless the company agrees to waive the eligibility requirement, but not until the probationary employee has completed any and all safety related requirements.

3) Employees must arrange to attend all required meetings as specified by the Company such as Safety meetings, short duration training and Information Meetings at no additional cost to the Company.

4) The flex shift will be subject to any shift structure change that may be arranged as per Article 16.01 of the Collective Agreement.

5) Overtime assignments will be made according to the employees chosen shift not the employees original shift.

6) Recall from lay-off will be done as per Article 12.01 of the Collective Agreement. The employee will go back to their chosen flex shift structure once all employees related to that agreement are back at work.

7) If any of these operating rules have been broken the employee involved plus the employees within the arrangement will go back to a three (3) shift rotation. (Unless other arrangements can be made.)

8) Individual arrangements may be terminated by any employee involved in an agreement or by the Company with one (1) weeks notice. The employee initiating the termination of an agreement will give a reasonable explanation for termination. This will affect all employees within the agreement and the Company will assign the employees involved to a shift as per Criteria #7 stated above.

9) The Company or the Union will terminate all arrangements given a three (3) week notice in writing which is posted. A reasonable explanation will be given.

DATED: September 11, 1998

Resigned this 8th day of August, 2007.

For the Company For the Union

Dale Zdravkovic Chris Hasselman

Jerry Jean Gary Panton

Gerard Lizotte

John Knight

Kim St. Jean

B J Cardy

29

LETTER OF UNDERSTANDING

BETWEEN

PAVACO PLASTICS INC.

AND

U.N.I.T.E LOCAL 2508

The parties agree as follows:

Should a facility owned by Pavaco Plastics Inc. be relocated to another area of the Province the Company will post a list of potential positions that may be available. Employees may apply for such positions and their applications will be considered based on their skill and ability to perform the duties associated with the position applied for.

This provision shall be come effective upon ratification of the collective agreement being negotiated to replace the Collective Agreement due for expiration on September 10, 2007.

Signed this 7th Day of June 2001 at Guelph, Ontario

30

Resigned this 8th day of August, 2007.

FOR THE COMPANY FOR THE UNION LOCAL 2508

John Knight Jerry Jean Chris Hasselman Dale Zdravkovic Gary Panton Gerard Lizotte Kim St. Jean B.J. Cardy

LETTER OF UNDERSTANDING

BETWEEN

PAVACO PLASTICS GROUP

AND

U.N.I.T.E. LOCAL 2508

The Union and the Employer believe that the Human Rights of all employees must be protected so as to ensure that every person is treated with dignity and respect. No individual should suffer from or be exposed to harassment at work, based upon that person’s race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, handicap, age, record of criminals offenses, family, marital or employment status. Harassment is a course of conduct or comment that offends or abuses a person on any of the grounds stated above, or abuses a person where such behavior is known or ought reasonably be known to be offensive and unwelcome. Sexual harassment is a particularly objectionable type of discriminatory course of conduct or comment which cannot be tolerated, as it represents an unwarranted intrusion upon a person’s sexual dignity as a man or woman. Sexual harassment may take a variety of forms such as unsolicited or unwelcome gender-based comments, gestures and physical contact, or the control or alteration of working conditions so as to coerce submission to sexual advances. The Employer agrees to develop, jointly with the Union, a policy against harassment and make all management personnel and employees aware that violations of the policy shall be subject to disciplinary action. The Employer also agrees to include the subject of harassment in staff or management training sessions. In order to ensure the consistent application of this policy, it is both the right and the responsibility of any employee who believes that he or she has been subjected to harassment as defined above to immediately report such concerns to the designated representative. The Company will advise the designated Union representative of such allegation. All allegations will be fully investigated in a confidential manner. The complainant will be advised of the result of the investigation. Any employee who, as a result of a full investigation is determined to be in violation of this policy may be subject to disciplinary action up to and including discharge from employment.

31

Signed June 28th, 2001, to be effective September 11, 2001. Resigned this 8th day of August, 2007. FOR THE COMPANY FOR THE UNION John Knight Dale Zdravkovic Gary Panton Jerry Jean Chris Hasselman Gerard Lizotte

Kim St. Jean BJ Cardy

LETTER OF UNDERSTANDING

BETWEEN

PAVACO PLASTICS GROUP

AND

U.N.I.T.E. LOCAL 2508

Re: Hematite Manufacturing Steady Shifts The parties agree to institute a steady shift agreement pursuant to consultation as provided for in Article 16.01 of the Collective Agreement. A survey of employees clearly indicated a desire to go to steady shifts. Employees have been slotted into positions according to their classification, seniority and choices. The shifts will be 8 hours in length and be the same hours as contained in the Collective Agreement. Shift vacancies within a classification shall first be offered to those within the classification by seniority prior to being posted. Steady shifts will be implemented at both Hematite and Genesta June 11, 2000. Signed this 15th day of May 2000 at Guelph, Ontario

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FOR THE EMPLOYER FOR THE UNION T.A. Ervin John Knight Danny Maidment Wayne Bristow Brian Mitchell Bill Muise Line Theberge Gary Panton Merv Schwantz Joe Bianchi BJ Cardy Resigned this 8th day of August, 2007. FOR THE EMPLOYER FOR THE UNION

Dale Zdravkovic John Knight Chris Hasselman Jerry Jean Gary Panton Gerard Lizotte Kim St. Jean BJ Cardy

33

LETTER OF UNDERSTANDING

BETWEEN

PAVACO PLASTICS INC.

AND U.N.I.T.E. LOCAL 2508

August 23, 2000

The following safety/status meeting schedule is agreed to by all parties. The shifts will be changed as follows for scheduled safety/status talks monthly unless they are not required. These safety/status talks will occur on Fridays. Item #3 under operating rules of within the Flex Shift agreement are not applicable. SCHEDULED HOURS OF WORK FOR MEETING TIME SAFETY TALKS Midnight Shift 12:00 am to 8:00 am 7:30 am to8:00 am Day Shift 7:30 am to 3:30 pm 3:00 pm to 3:30 pm Afternoon Shift 2:30 pm to 10:30 pm 2:30 pm to 3:00 pm This will be on a voluntary basis and everyone will have the opportunity to work 8 hrs. If an employee is no later than 15 minutes he/she will attend the safety/status meeting and remain on the scheduled shift for that day. If the meeting is over he/she will report to the supervisor upon arrival. If an employee is more than 15 minutes late he/she will work an 8 hour shift. Example: An employee is at work at 3:00pm he/she will work till 11:00 pm. If work is required after 10:30 pm to 12:00 am it will be offered to the shift performing the work first. If it can’t be filled it will be offered to the upcoming scheduled shift. Signed this 8th day of August, 2007. For the Employer For the Union Dale Zdravkovic Gary Panton Chris Hasselman Jerry Jean Gerard Lizotte John Knight Kim St. Jean B.J. Cardy

34

HEMATITE MANUFACTURING BULLETIN Volume 1 March 13, 1996 EXTRUDER OPERATOR UPGRADES

The Company hereby gives notice to all Bargaining Unit employees that effective immediately the procedure for upgrading Extruder Operators will change. Upgrades will not longer be automatic, they will be effective when the Company determines there is a need based on labour requirements. New positions will be posted per the posting procedure, but upgrades will be processed though the new procedure. Employees in the classification can request to take the required written and practical tests, but upgrade will not be processed until there is a need. New rate and level change will be effective the date the position is filled, not the date of writing and passing the tests. Employees currently “in the loop” will be allowed to continue their upgrade through the previous procedure. Sue Thwaites Resigned August 8, 2007. FOR THE COMPANY FOR THE UNION Tom Ervin John Knight Gary Panton Danny Maidment Ed Chambers Heather Rankin Line Theberge Joe Bianchi BJ Cardy Jerry Jean Resigned this 8th day of August, 2007. For the Company For the Union Gary Panton Dale Zdravkovic John Knight Jerry Jean Gerard Lizotte Chris Hasselman Kim St. Jean \ B.J. Cardy

35

LETTER OF UNDERSTANDING

BETWEEN

PAVACO PLASTICS INC. (HEMATITE MANUFACTURING)

AND

UNITE

It is agreed that effective September 11, 2004 that the Company will make an annual contribution in the amount of ($1000.00) one thousand dollars to UNITE for the Union education fund. This contribution will be made annually on September 11th. Signed this 8th day of August, 2007.