ARTICLE I

ARTICLE 2

ARTICLE 3

ARTICLE 4

ARTICLE 5

ARTICLE 6

ARTICLE 7

ARTICLE 8

ARTICLE 9

ARTICLE 10

ARTICLE II

ARTICLE 12

ARTICLE 13

ARTICLE 14

ARTICLE 15

ARTICLE 16

ARTICLE 17

ARTICLE 18

ARTICLE 19

TABLE .OF CONTENTS

REC<)CiNITI<)N ............. ... ............. ............. ... ..... .. ......... .................... ..... ........ 1

DISCRIMINATION ........................................................................................ 1

MANAGEMENT RIGHTS ............................................................................. 2

GRIEVANCE AND ARBITRATION PROCEDURE ................................... 2

UNION AFFAIRS ............. ... .. ... ...................... ................................................ 5

HOURS ()F WORK ............ ....... ............... ........ ................ ..... ......................... 6

HOLII)A YS ..................................................................................................... 9

VACATIC>NS ................................................................................................ 1 0

LEAVE ()F ABSENCE ............. ... .............. ....... ....................................... ..... II

JURY DUTY ................................... ........... ..... .............. ............ ....... .. ... ........ I2

SENIORITY ... ... ... ............. ............... ... ............. .... .. ......... .. ................ ....... .... . 12

EMPLOYEE BENEFITS ............... ........ ............ ............ ..... .... .. .............. ...... 16

NO STRIKE-NO LOCKOUT .................................................................... 18

PAY ON THE DAY OF INJURY ................................................................. I8

HEALTH AND SAFETY ............................................................................. 18

MISCELLANEOUS PROVISIONS ............ .. ................. .... .......................... 18

WAIVER AND EXECUTION CLAUSE ..................................................... 19

BEREAVEMENT LEAVE .... ......... ........ ...................................................... 20

EXHIBIT "B" ................................................................................................ 20

ARTICLE 20 DURATION OF AGREEMENT .................................................................. 20

EXHIBIT "A"- CLASSIFICATIONS AND WAGES ............................................................ ... 21

EXHIBIT "B": VALIDITY OF AGREEMENT ........ ............... ......... ........... .......... ....... .... .... ...... 22

EXHIBIT "C"- DUES DEDUCTION AUTHORIZATION ............................... ......................... 23

LETTER ()F INTENT #I .............................................................................................................. 24

LETTER OF INTENT #2 ........................................... .... .................. .... ................. ........................ 25

LETTER <)F INTENT #3 .............................................................................................................. 26

LETTER OF INTENT #4 .............................................................................................................. 27

LETTER OF INTENT #5- RE: ARTICLE 6.03 ..... ............. ............. .......... .......... .............. .. ... .... 28

LETTER ()F INTENT #6 ......................................... .................... ................... ........ ............... ...... . 28

LETTER ()F INTENT #7 ... .......... .. ............ ....... ................ ........ ............ ......... ...... ................. ........ 28

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I his agrl:ement made this 21 ' 1 day of Man.: h . .2006

Between:

PARKER HANNlFIN CANADA- 0-RING DIVISION (hereinafter referred to as the "Compnny")

OF THE FIRST I' ART

-and-

UNITED STEELWORKERS OF AMERICA, LOCAL 822 (hereinafter referred to as the "Union"')

OF THE SECOND PART

ARTICLE I RECO(;NITION

1.0 I The Company acknowledges that the United Steelworkers of Ameril:a, Local 822 has

been certified by a Certificate of Recognition dated September 8th, 1966, by the Ontario

Labour Relations Board, as the bargaining agent for:

"all employees ... save and except foremen, persons above the rank of foreman and office

and sales staff"

in the employ of Parker Hannifin Canada - 0-Ring Division, Hughes Road, Orillia,

Ontario, for collective bargaining purposes in conformity with the provisions of the

Labour Relations Act, 1995 (S.O. 1995, c. I, Sch. A).

ARTICLE 2 DISCRIMINATION

2.0 I There shall be no discrimination, intimidation, interference, restraint or coercion on the

part of either party or its agents with respect to any employee because of membership or

non-membership in the Union.

2.02 !3oth parties agree as to their desire to work in harmonious relationship and undertake

that there shall be no discrimination, interference, restriction, coercion, harassment,

intimidation or stronger disciplinary action exercised or practised with respect to an

-.·mployee by reason of age, race, creed, colour, national origin, political or religious

afliliation, sex, sexual orientation, or membership or non-membership in the Union,

physical or mental handicap. All prohibited grounds of discrimination shall be delined

.111d interpreted as they are under the Ontario Human Rights Code.

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2.03 R~ference to the masculine shall be deemed to include the feminine.

ARTICLE 3 MANAGEMENT RIGHTS

3.01 The Union recognizes that the Company has the exdusi\c right to manage and operate its

plant and equipment and to carry on its business as it sees tit subject only to the

restrictions imposed by la,w and/or by a specitic provision of this Agreement, the

Company retaining all rights and privileges not specifically relinquished or modified and,

without restricting the generality of the foregoing, the right to maintain order, discipline

and efficiency, to change the hours of work, to establish and change work schedules and

shifts, to determine or change work assignments or mdhods, to select materials to be

handled, processed or manufactured, to detennine the engineering and designing of its

products, to let contracts or sub-contracts for the manufacturing and/or repair of any

products or parts thereof or for constmction or alteration of plant and grounds.

3.02 The Union also recognizes that the Company has the right to decide from time to time,

except as otherwise specifically limited by this agreement, all matters relating to the tenns and conditions of employment of the employees, including, without limiting the

generality of the foregoing, the right to hire, promote, demote, classify, transfer, layon:

retire, suspend or otherwise discipline and discharge employees for just cause, subject to

the right of the employees concerned to lodge a grievance in the manner and to the extent

herein provided.

3.03 (a) The Company shall have the right to make and alter from time to time reasonable

rules and regulations to be observed by the employees, which mles and

regulations shall not be inconsistent with the provisions of this Agreement. The

Company shall discuss changes in written conduct rules with the Union prior to

implementation.

(b) The parties acknowledge that past practices may change and that settlement of a

dispute does not constitute a precedent tor the future unless expressly stated.

3.04 The Company agrees that these functions in 3.0 I, 3.02 and 3.03 will not be exercised

contrary to the express terms of this agreement.

ARTICLE 4 GRIEVANCE AND ARBITRATION PROCEDURE

4.01 Disputes as herein defined between the Company and !.;!111ployecs covered by this

Agreement shall be subject to adjustment by the procedure prescribed in this article.

4.02 A dispute shall be defined as a controversy arising trom the interpretation and application

of a specilic provision of this Agreement, as such interpretation or application may affect

the rights of an employee, or group of l!mployees, or the Union.

4.03 A dispute shall lirst be discussed by the l!mployee with the Team Leader within live (5)

working days of the occurrence of the incident causing the dispute. A representative of

the Union may be present at such discussion if the employee so desires.

4.04 A dispute not adjusted to the satisfaction of the employee or employees concerned within

two (2) working days following discussion with the foreman (as provided in 4.03 above)

shall be deemed a grievance and may be submitted to the grievance procedure.

4.05 Grievances shall be adjusted and settled as follows;

4.06

4.07

Step No. I:

The dispute shall he put into written form and signed by the employee or employees

affected. Such written form must be presented to the Department Manager or designate within eight (8) working days of the occurrence of the incident causing the dispute. The

Department Manager shall give his answer in writing within three {3) working days.

Step No.2:

Grievances not satisfactorily adjusted at Step No. I may be rderred to the Human

Resources Manager or designate. Referral of such grievances to the Human Resources

Manager or designate must occur within live (5) days after receipt of the foreman's

answer at Step No. l. The Human Resources Manager or designate shall have live (5)

working days to schedule a conference with the Union and to give his reply in writing.

Step No.3:

Grievances not satisfactorily adjusted at Step No. 2 may be referred to the Operations

Manager or designate. Referral of such grievance to the Operations Manager or

designate must occur within tive (5) days of the Human Resources Manager or

designate's answer at Step No. 2. The Operations Manager or designate shall have five

(5) working days to schedule a conference with the Union and to give his reply, in

writing,

Conferences under Step No. 2 and Step No. 3 will be held within tive (5) working days

after a grievance is referred to either step. Management shall be represented by the person named in each step, or his duly authorized representative. The Union shall be

represented by the persons named in Article V, paragraph 5.01 ofthis agreement.

Step No.4- Arbitration

In order for a grievance to be arbitrable;

(a) it must have been properly processed through the grievance procedure;

(h) it must genuinely involve the interpretation or application of a speci tied provision or provisions of this Agreement;

(c) it must not rest on any alleged understanding, practice or other matter outside the ~cope of this Agreement;

(d) it must not require the Board of Arbitration in order to rule in favour of the grievance, to exceed the scope of its jurisdiction under this Agreement.

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4.08 This issue of arbitrability may he determined by mutual agreement of the parties with respect thereto, or by a Board of Arbitration or single Arbitrator.

4.09 Either party may ch:ct to seck arbitration of any arbitrable issue. and in the event shall proceed as follows:

(a) within ten (I 0) working days from receipt of the Operations Manager's answer to Step No. 3 of the grievance procedure, either party shall so notify the other, in writing, stating the issue proposed to be submitted to arbitration, the provision or provisions of the Agreement on which the claim rests or out of which the dispute arises and the relief or remedy sought. The Union shall have an additional twenty-five (25) days to notify the Company where it is necessary to get the approval of a membership meeting provided that the Company will not be liable for damages during such additional twenty-five (25) days.

(b) within five (5) working days after receipt of such notice, the parties shall name their respective representatives on the Board of Arbitration. The Board of Arbitration shall be composed of one person selected by the Company and one person selected by the Union. The persons named by the parties shall mutually agree to a third person to act as chaim1an, but in the event the persons named by the parties are unable to agree upon such a third person within tive (5) working days, the Minister of Labour for the Province of Ontario shall be asked to appoint a person a chainnan.

(c) if an issue is raised concerning the arbitrability under the Agreement ofthe issue sought to be arbitrated, and such issue is not otherwise decided, the parties by mutual agreement may submit this issue alone to a Board of Arbitration, as provided above, and the decision given by such board shall be final and binding. If in favour of arbitrability such decision shall be followed by a hearing on the merits of the issue. The fact that dispute has been handled under the grievance procedure shall not preclude the raising of the issue of arbitrability with respect to such claim or dispute.

(d) the Board of Arbitration's jurisdiction to make an award shall be limited and contined to the interpretation or application of the speci1ied provision of this Agreement. The Board of Arbitration shall not have jurisdiction to make an award which has the effect of amending, enlarging, or ignoring the provisions of this Agreement, nor shall it have jurisdiction to determine that the parties by practice or implication have amended or supplemented this Agreement, unless the pat1ies "hall expressly submit to it the issue as to '" hether such an agreement by practice or implication was made. The Board of Arbitration's award. so made, shall be final and binding.

(c) the entire fee and expenses of the person sdccted or appointed as the chairman of the Board of Arbitration shall be borne jointly by the panics and each party ~ hall bear the entire fee and expenses of the person named as its representative on the Board of Arbitration.

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(t) The parties recognize the arbitration provision under Section 49 of the Ontario Labour Relations Act and that either party may pursue the requirements of that legislation and comply with its provisions as set out in the Act. Either party shall. at the request of the other party, agree to extend the time for a Section 49 arbitration for up to 3 weeks. In this event, it is agreed that neither party shall raise the issue of timeliness as a prohibition of the arbitrator's jurisdiction to deal with the grievance on its own merits.

4.10 "Working days" shall exclude scheduled days off for the employee and shall exclude days for which normal production is not scheduled. The time limits imposed by the several provisions of this Article IV may be extended by written agreement between the parties.

4.11 Suspension and Discharge Grievances

(a) In the event an employee with seniority is discharged or suspended the Union will be notified as soon as possible. Such employee may grieve that the suspension or discharge is unjust by tiling a grievance within tive (5) working days of the date the employee is notified and such grievance shall be filed at Step 2 of the Grievance Procedure.

(b)

(c)

(d)

A dismissed or suspended employee may consult with a Steward or Union officer for up to twenty (20) minutes before leaving the premises except where circumstances are such that it is appropriate to require the employee to leave immediately.

Certain discipline shall be disregarded after the following lengths of time in which there is no further discipline:

Verbal warning

Written warning

I year

18 months

If the Company does not schedule a suspension without pay to begin within two (2) weeks following the issuance of the suspension, then there shall be no time otf without pay, but the suspension will be recorded on the employee's record as if it had been served.

4.12 In all cases of suspension or discharge or in other cases by mutual written agreement the parties shall replace the three person board of arbitration with a single arbitrator.

ARTICLE 5

5.01 (a)

UNION AFFAIRS

For the purpose of handling grievances in the grievance procedure and in arbitration, and f()r the purpose of negotiating new agreements with management. the employees of the Company who are within the group specified in Article I. paragraph 1.0 I, may select three ( 3) persons \vho are employees of the Company. Such persons shall not lose pay for reasonable time spent in grievance meetings with the Company or in arbitration hearings provided that not more than two (2)

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representatives shall be paid at any one time for grievance and arbitral ion procedures. Three (3) representatives shall be paid for time lost d11e to negotiation meetings with the Company.

(b) A Union steward or officer shall not lose pay tor time spent investigating existing complaints after they have been raised under Article 4.03 provided that:

( i) The Steward or officer shall receive permission of his toreman bcfi.)rc stopping work and such permission shall not be unreasonably denied.

(ii) The Steward or officer retums to work promptly.

(iii) The Company may limit the time so taken if it becomes excessive.

5.02 A representative of the lntemational Oftice of the USWA and/or the field representative may take part in any Step 3 grievance meeting and in any negotiations between the Company and the Union at any time. ·

5.03 The Company shall permit the Union to use the bulletin board to post notices of meetings, results of elections, and other things of interest to its members. Such notices shall first be approved by the Company.

5.04 The employees who at the effective date of this Agreement are members of the Union shall remain members of the Union for the duration ofthis Agreement.

5.05 Notice of any change in the amount of union dues will be provided in writing by the Union to the Personnel Manager at least one ( 1) month prior to the commencement of the pay period in which the new rate is to be implemented.

5.06 The Union shall indemnify and save the Company harmless trom any claims, suits, judgements, attal:hments and from any other form of liability as a result of the Company making any Jedm.:tions in accordance with the foregoing, and the Union will make refunds directly to all employees from whom a wrongful deduction was made.

5.07 The Company will provide the use of office space and telephone to the Union bargaining unit chairperson lor union business permitted by Article 5. This shall be private and uninterrupted by Management.

ARTICLE 6 HOURS OF WORK

6.0 I The purpose of this Article VI is to define the hours of work and provide the ba~is for the calculation of ovt:rtime premium payments . It shall in no \vay be l'tlllstru~d as a guarantee of hours of work per day or per week, or of days of work p~r wel'k.

6.02 As specifically reserved in paragraph 3.0 I o f this Agreement the numb~.:r of' hours to he worked per day or per week and the number of days to be worked per week are solely and exclusively the prerogative of the Company. A reduction of work shall not he

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accomplished by a general or partial reduction in the number of weekly straight time hours unless the parties agree to a type of work-sharing.

6.03 (a) Press Operator, Cell Operator, Mould Maintenance and Repair, Quality Control in the Press Room, Silicone Room and finishing Operators when working on a three (3) continuous shift basis shall have a five ~5) day, eight (8) hour shift \Vith a twenty (20) minute paid lunch. The Company may add other dassitications to this I ist.

(b) The normal work week ll1f all others will be t(.wr (4) days of eight and one-half (81J2) hours each and one (I) day of eight (8) hours. When Tool Room and Maintenance are working three (3) continuous shifts their hours of work shall be eight (8) hours per day including one (I) twenty (20) minute paid lunch. When a Tool Room or Maintenance employee is not working on a three continuous shift basis, his hours of work shall be eight (8) hours per day plus one-half (Y2) hour unpaid lunch.

(c) The regularly scheduled work week shall begin at II :00 p.m. Sunday and shall extend to II :00 p.m. the following Friday except for Casual Cleaners.

6.04 (a) Overtime at the rate of time and one-half the employee's regular hourly rate ::.hall be paid for all work perfonned in excess of forty-two (42) hours per week or forty ( 40) hours per week, as the case may be, provided that where an employt..:e has \\orked in excess of his regularly assigned number of hours in any shift of any one day, but is prevented from working his full working week by the intervention of a plant holiday or by the failure of the Company to provide him with work then in such case he shall receive overtime for such work calculated on a daily basis.

(b) Overtime does not include:

(i) time worked by an employee substituting for another employee at his request; or

( ii) a change of an employee's working hours at his own request if granted.

(c) The Company agrees to distribute overtime hours equally amongst those employees on the shift who nonnally pertom1 the work. Problems with improper distribution will be discussed between the parties and remedied by future overtime ass ignments except where the overtime was assigned to a person who does not normally perform the work without having first been offered to those persons on the shift who normally pertonn it.

(d) Overtime will initially be voluntary. If there are insuflicient volunteers the overtime shall he compulsory in the reverse order of seniority amongst the persons on the shift who nonmllly pert()rm the work on which the overtime is required.

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(c) When working weekend and statutory holiday overtime the phrase "on the shill" shall he excluded from 6.04 (c) and 6.04 (d).

6.05 Employees required to work on Sunday shall be paid at double time (2X) their regular hourly rate for time worked.

6.06 Employees required to work on a holiday for which holiday pay is granted shall be paid, in addition to holiday pay, at double time(2X) their regular hourly rate for time worked provided they work the full scheduled work week.

The absence of an employee due to injury caused by accident which prevents him from attending at work, leave of absence, jury or (subpoenaed) \vitness duty, Oath of Citizenship, bereavement leave, or illness verified by a written Doctor's diagnosis, if requested shall not disentitle the employee to overtime.

6.07 An afternoon-shift diiTerential of tifty cents (50¢) per hour shall be paid for work performed on the afternoon shift; a night-shiti differential of tifty-tive cents (55e) per hour shall be paid for work performed on the night shift.

There shall be no overtime on the shift differentials. However where an employee works overtime which extends into the subsequent shift he shall continue to receive the premium, if any, to which he was entitled tor his full straight time shift.

6.08 Whenever an employee reports for work at the regular time, he will be given a minimum of four ( 4) hours' work or equivalent pay at straight time or premium rate if applicable, provided that this shall not apply where:

(a) the failure to provide work is due to circumstances beyond the control of the Company (e.g., lire, electrical f~tilure, flood, strike); or

(b) the employee has been notified that he will not be required either by mail to his last known address or by telephone call to his last known telephone number; or

(c) where the Company cannot notify the employee because he does not have a telephone.

6.09 All employees doing the same kind and amount of work shall receive the same rate nf pay, except as provided by the fu11her provisions of this paragraph and by paragraphs I 1.07 and 11.08 of Article XI. New employees may be hired at a rate consistent with the o;chedulc of Plant Hourly Rates, marked Exhibit ''A" and made a part of this Agreement by reference, and \Vi II have their wages increased hy the amounts and at the intervals set forth in such schedule.

6.10 An employee who is injured in the plant ~hall be paid according to the rules and regulations of the Workplace Safety and Insurance Board.

6.11 All employees shall he granted a ten (I 0) minute paid rest period twice each shift.

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6.12 Shitt hours will he established by the Company and may be ~:hanged from time to time as required by production schedules or more dftcient machine utilization provided the employees affected by a change shall receive at least three ( 3) working days' notice except where the change of shift results from employees switehing shifts, job posting, bumping or recall ti·om layoff. Employees shall not be required to rotate :.hilts on a regular basis without the agreement of the Union except f<x training or emergency purposes and in the Maintenance Department

ARTICLE 7

7.0 I (a)

HOLIDAYS

Each employee will be paid eight and one-half (8Y2) or eight (8) hours' pay, whichever is the case, at his rl.!gular straight time hourly rate (t.!xcluding night shift and overtime premium) for any of the following thirteen holidays:

New Year's Day Good Friday Victoria Day

Canada Day Civic Holiday Labour Day

Thanksgiving Day Christmas Day Boxing Day

and for each production employee, the following holidays:

2006: December 27, December 28, December 29, January 2, 2007 2007: December 24, December 27, December 28, December 31 2008: December 29, December 30, December 31, January 2, 2009

!b) The foregoing tloating holidays may be changed by mutual agreement between the employee and the Company. In the event there is a mutual agreement, Article 6.06 will not apply in regards to the overtime pay.

In the event an employee has tloating holidays lett prior to the following March 31st the floating holiday(s) will he paid out at the employee's regular straight time rate on the last pay period immediately prior to the expiration date March 3 I st.

(c) An employee will only be entitled to a holiday with pay provided he qualities under the following rule:

Each employee must work the full work day immediately preceding the holiday and the full work day immediately f(.)llowing the holiday.

(d) When the holiday(s) falls on a non-working day(s) the Company shall consult with the Union as to the day(s) on which the holiday(s) will be observed.

7.02 An employee \\"hO agrees to \Vork when requested on a holiday for which holiday pay is granted shall forfeit such holiday pay if he tails to work as agreed.

The absence of an cmployee on a qualifying day or on a working day scheduled under this .-"\rticle shall not disentitle the employee to the paid holiday where the absenee is due to injury caused by accident \vhich prevents him from attending at work, leave of absence, jury or (suhpocnaed) witness duty, bereavement leave, or illness verified by a

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\vTitten Doctor's diagnosis, if requested or Emergency Leave pursuant to the Employment

Standardv Ac! including notification and proof requirements. Reasons for lateness on

qualifying days will be reasonably considered by the Company.

ARTICLE 8 VACATIONS

t-;.0 I Employees who have been continuously employed by the Company for at least one (I)

year as of July 1st, will be entitled to two (2) \veeks' vacation with pay. After live (5)

years of continuous service with the Company as of June 30 in any year, ~.:mployees will

be entitled to three (3) weeks' vacation with pay.

Alter eleven (II) years continuous service with the Company as of June 30 in any year,

an employee will he entitled to four (4) weeks vacation with pay.

Alter twenty (20) years continuous service with the Company as of June 30 in any year,

an employee will he entitled to live (5) weeks vacation with pay.

Vacation pay for five (5) weeks vacation shall be ten per cent (I 0%) of the employee's

earnings for the twelve months preceding July 1st in the cunent year.

The past practice for vacation pay calculation shall be continued provided the Company

receives reasonable notice of the vacation request. In the event the vacation pay is

included in the employee's last regular cheque, it is agreed that the amount of income tax

deducted will be the same as if the vacation pay was issued on a separate cheque.

8.02 (a) Vacation pay for two ( 2) weeks vacation shall be four ( 4) percent of the

employee's earnings for the twelve ( 12) months preceding July I st of the ...:urrent

year.

(h) Vacation pay for three (3) weeks vacation shall be six (6) percent of the

employee's eamings for the twelve ( 12) months preceding July I st in the current

year.

(c )

(d)

Vacation pay for four (4) weeks vacation shall be eight (8) _percent of the

employee's earnings for the twehe ( 12) months preceding July 1st in the current

year.

(i) Vacation pay shall he a...:crued during the vacation year, July I to June 30111•

(i i)

(iii)

Vacation pay shall be paid out as vacation is taken in increments of (I)

Days or I (full weeks vacation pay) provided it is requested on vacation

fonn when submitted effective June 12, 2006.

There shall be no payout of accrued vacation monies until the vacation is

taken .All unused vacation pay will be paid out by the next March 31 "'1 and

\acation not taken by that time will be forfeited .Vacation on Vacation ray

will be paid out by the next March 31 s1,.

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8.03 (a)

(b)

(c)

(d)

(e)

(f)

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( i) The Company may choose to close J(m n operations for vacation purposes during one (I) week, t\VO (2) separate \\eeks or two (2) continuous weeks upon giving at least sixty (60) calendar days notice to the Union

(ii) Vacation time shall he taken during the Plant Shutdown except as follows. Work required during shutdown will he offered in order of seniority amongst the senior employees who normally perform the work. If there are insufficient volunteers, the junior employees who normally perform the work shall be assigned.

The vacation schedule for individual employees (except tor plant shut downs) will be posted by April 30111 each year. The individual cmployc.?e names \\ill not .1ppear on the posting.

Management may determine the number of employees \\ ho may he away at any time

Employees may submit vacation requests for the period from June I to September 30 of that year by April 30 of that year. Vacation for this period will he granted by seniority by May I 0 of that year. In the event of a contlict whereby two or more employees request the same \veek of vacation at the same time making approval impossible, then the senior employee shall be given preterence.

Employees who have not been granted their full vacation entitlement as of Ylarch 3 I ' 1 following completion of the va.cation year shall forfeit the remaining entitlement and receive their unpaid vacation pay in the first pay period in April.

All other vacation requests will be granted on a first come, first served basis and response \Viii be given within one week of submitting such request.

8.04 Employees shall be required to take two (2) weeks of their vacation entitlement. Employees wishing to take vacation time shall do so between April I ' 1 prior to the completion of the vacation year and the follmving March 31 ' 1

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ARTICLE 9 LEAVE OF ABSENCE

9.01 Leaves or absence, without pay, may be granted by the Company for justifiahk reasons. Leaves other than maternity leaves, may be granted for a period not in t~xcess uf' six ( 6) weeks and may he extended in the discretion of' the Company.

9.()2 Employees \vho request leave of absence because of incapacitating personal illness or accident must lurnish satisfactory medical e\ idence in support of their rcquc:>t. .-\n employee drawing income replacement benefits \\ ho is required to provide a Doctor's ccrtiticate or form will be reimbursed f(x the cost of the certificate or limn to a maximum of Iitty dollars ($50.00) each to an ,mnualmaximum of one hundred dollars ($1 00.00).

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9.03 The company will grant pregnancy and parental leave in accordance with the provisions under the Employment Standards Act.

9.04 (a) Employees selected to represent the Union under the provisions of Article V of this agreement may be granted leave of absence, without pay, tor the time necessary to exercise their responsibilities to the Local Union or the International Union, subject to the time limits imposed by paragraph 9.01 above.

(b) The Company shall grant leave of absence without pay tor up to two (2) delegated Union members to attend Union conventions or conferences provided it does not unreasonably interfere with operations. Company operations permitting, up to three (3) additional members may, at the discretion of the Company, be granted similar leaves of absence. Where possible, the Union will notifY the Company three (3) weeks in advance, and in all cases at least one (I ) week in advance.

9 .05 Employees returning from leave of absence of up to six (6) weeks will be placed on the job they held previous to such leave. Any employee returning from leave of absence in excess of six (6) weeks will be placed on the job he held previously if the job still exists and has not been filled by a senior person through the bumping procedure and otherwise may exercise his bumping rights under Article 11.04.

9.06 Leaves of absence shall be granted in writing and the response given within one (1) week of the request.

ARTICLE 10 .JURY DUTY

I 0.0 I An employee who serves as a juror or as a witness subpoenaed by the Crown in legally constituted court shall be paid the difference between the amount received for such service and his straight time hourly rate, times the number of hours he normally works, tor each day he serves as a juror or witness.

I 0.02 The Company will provide time off with pay which is necessary for the employees to take Oath of Citizenship tor up to one ( 1) day.

ARTICLE 11 SENIORITY

11.01 (a) Seniority is a term used herein to define an employee's length of service with the Company. Seniority date is that date upon which the employee was originally hired and which becomes effective after the employee has completed ninety (90) days of continuous service with the Company. Seniority shall be continuous unless terminated by any of the reasons specified in paragraph 11.05 of this Article XI.

The discharge of a probationary employee shall be at the discretion of management.

(b) If two (2) employees are hired on the same day then seniority will he determined by sorting alphabetically.

11.02 Seniority shall be al:cumulated by time actually spent on the payroll, plus properly

approved absences and leaves of absence granted by the Company.

11.03 (a)

(b)

(c)

11.04 (a)

Layoffs of definite duration may be etlected by the Company \Vithout regard to

the provisions of paragraphs 11.04 and 11.09 of this article, provided, htnvever.

that upon the expiration of a cumulative period of twenty (20) work days during

any twelve ( 12) month period of tive (5) consecutive work days, as applied

individually to any employee, the provisions of said paragraphs 11.04 and 11 .09

shall be applied but without retroactive effects.

When a layoff governed by Article 11.04 is pending where practicable, a copy of

the layoff list will be furnished to the Union at least forty-eight (48) hours in

advance of the layotT. The Union may present to the Management any

recommendations tor changes in the list. Any recommendation agreed upon by

the Company and Union in writing, shall be binding on all concerned.

When an employee is laid otl he will specifY if he wants to he called back to a lower job class or only the same from which he was laid off.

In all cases of transfer to a position in Tool Room, Maintenance, Q.C. Lab

Technician, or Inventory Control/Shipping under Article 11 . 11, and in all cases of layotf, the following tactors shall be considered;

(i) seniority

(ii) ability and merit·

(iii) physical competency

Seniority shall be the determining factor when factors (ii) and (iii) are relatively

equal. Employees affected by the toregoing provisions may request review

through the grievance procedure provided in this Agreement.

(b) For all other transters under Article 11.11 the senior applicant shall be entitled to ;

preterence provided he/she can perform the work to normal standards.

(c) An employee indetinitely laid off from his/her regular classification may bump a junior t:mployee in any of the f()llowing classifications:

Preparation Operator Cell Operator Finishing Operator Bun: Trim and Inspect Press Room Shipper/Receiver/Clerk - provided the employee has previously satistactorily

performed all of these functions for a continuous period of six (6) months and

remains capable.

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Quality Controi/AQL - provided the employee has previously satisl11ctorily

performed that work (AQL) or BT&I for six (6) months and rema~ns capable.

11.05 Seniority, and all rights attendant thereto, shall terminate for any of the lollowing

reasons:

(a) dismissal for cause not reversed by the grievance procedure

(b) voluntarily quitting the employ of the Company

(c) absent from work three (3) consecutive work days without notifying the Company

(d) overstaying leave of absence without wnsent of the Company

(e) being on layoff tor a period exceeding the lesser of his total seniority or six (6)

months or t\venty-tour (24) months in the case of an employee who has live (5)

years or more seniority. If an employee who has lost seniority is subsequently

rehired within twenty-four (24) months of the layoff he will be credited \Vith his

prior seniority.

(I) !~1ilure to return to work upon notice of a recall which will last more than tive (5)

days . Recall shall be either actual telephone contact with a union witness or by

courier delivery of a written notice of recall to the employee's address as last

notified in writing by the employee to the Company. Return to work shall be

within two (2) calendar days if the employee does not have a full time job

el sewhere and within one (I) week if the employee does have a full time job

elsewhere. The Company will extend the time limits for reasonable cause to a

maximum of one (I) and two (2) weeks respectively.

11.06 When vacancies occur, employees with the greatest seniority shall be given ~hilt

preference.

11.07 (a)

(h)

In case of layoff due to ~.:urtailm..:nt of production or job elimination, employees

affected may transfer to other jobs \\ .. ithin equal or lower wage rate ranges,

consistent with the provisions of paragraph I 1.04 of this Article, or take a layoff.

Employees who transfer under these provisions shall be paid within the wage rate

range of the new classification and shall recei\ e the top rate within thirty (30)

days.

Recalls from Layoffs shall he in the following sequence:

( i) employees laid off to a different job '' ithin the plant shall he returned 111

seniority to their former job and shirt if there is a vacancy;

( ii) remaining vacancies shall be lilleJ by seniority subject to Article 11 .04.

11.08 (a)

(b)

(c)

(d)

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Employees may be transferred temporarily because of production requirements

and shall be paid at the rate of his former job or the rate of the job to which he is

transferred. whichever is greater.

When it is necessary to extend temporary transfers beyond sixty ( 60) consecutive

working days, the provisions of Article 11.1 I shall be applied and the vacancy

shall be posted as permanent unless it is to replace an employee on leave of

absence in which case it will he posted as temporary. This section will not be

used beyond sixty (60) consecutive working days by the Company to nullify the

job posting procedure in Article I 1.1 I.

The Company will provide written notice to the Union no later than the 30th

consecutive working day if the transfer will last more than thirty (30) consecutive

working days and the notice will state the tirst day of the transfer.

When it appears that a temporary transfer will last more than tive (5) working

days the Company will offer the transfer to the senior person(s) in the

classitication and on the shift from which the transtcr will be made.

I 1.09 An cmployee \vho is or was transferred from work now covered by the bargaining unit

shall continue In accumulate seniority for the lirsl year only and thereafter would

maintain that seniority, and if retumed to the bargaining unit he shall do so by job

posting.

II. I 0 The Company shall maintain all s~niority records. An up-to-date seniority I ist shall he

posted on the main bulletin board every six (6) months and a copy furnished to the

Union.

11.11 JOB POSTING

(a) When any of the bargaining unit jobs become vacant nn a permanent basis, th~

company wi II post a notice on the bulletin board for three (3) working days and

such notice will include the shift on which the vacancy exists as at the time of the

posting. It is understood that due to prodw..:tion uncertainties and personnel

changes it may not be possible in isolated cases to specify the shift on v .. ·hich th~

vacancy\\ ill occur. However the Company will minimize such situations.

(h) Employees shall be allowed to maintain two job applications tm file pri1)r to such

job posting which will he valid for one year. In the cvt:nt that no requests arc on

tik, or if employees requesting transf~rs are not qualified. ne\\ employees may be

hired. An employee transterring to anoth~r job will be giq:n training of up to one

(I) month. If he l~tils to progress satisfactorily he shall be allm'ved or may he

required to return to his pr~vious job during that month . In this event the Union

will be advised of the reasons t(H failure. The successful applicant \viii he placed

in 1he job within one week of the posted start date fnr the \ acancy subj~ct to

training and absentee replacement needs.

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(c) An employee who bids successfully will not be able to bid for another vacancy for a six ( 6) month period (one (I) year for persons who have successfully bid into Lab Technician Quality Control, Shipper/Receiving Clerk, Batch Mixing and Packaging) without the written agreement of the Company and the Union.

(d) If the Company mistakt!nly posts a vacancy in a position from which another employee is laid off to a different job within the Plant, the laid otf employee shall have the first claim to the vacancy provided the employee notifies the Company during the posting period.

11.12 The Union President shall be deemed to have the greatest seniority in the bargaining unit for layotf situations only, and shall be on steady day shift ..

ARTICLE 12 EMPLOYEE BENEFITS

12.01 The Company will contribute the following amounts monthly towards the health and welfare of its employees. The Company agrees that there will be no reduction in benefits in the event of changing carriers. If an insured benefit claim has been denied the Company will assist the employee in identifying the reason for denial and identifying any further information which would be required for reconsideration of the claim.

(a) Extended Health Care Plan Card will continue to pay I 00% of prescribed drug purchases according to the current policy after the employee pays the first two (2) dollars.

(b) Life Insurance/Accidental Death and Dismemberment

I 00% of premiums

effective February I s\ 2 006 February I 5\ 2007 February I st. 2008

- $42,000 - $43,000 -$44,000

(c) Weekly Indemnity- 100% of the premiums for a plan which would pay 66 2/3% of the employee's nonnal weekly eamings commencing on the first day of absence due to accident or outpatient surgery performed under anaesthetic, and the eighth day (effective February Is\ 2000- 6111 day; effective February I \ 2002 -4th day) due to illness for a benefit period of fifteen ( 15) weeks provided that the E.l. premium rebate shall accrue to the Company.

The plan shall provide benefits commencing on the first day of absence due to hospitalization.

(d) Dental -The Company will administer the dental plan negotiated by the Union by deducting the premiums and remitting to the carrier. Employees may opt out if they are covered by another plan or if they have full dentures.

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The Company will pay I 00% of the dental plan premium for a plan to include periodontal cleaning. Effective February I'\ :woo, a root canal rider shall be added to the Dental Plan.

The O.D.A. fee schedule shall be as follows:

Effective February I'\ 2006 February Is'. 2007 February Is\ 2008

2004 O.D.A. 2005 O.D.A. 2006 O.D.A.

The Company will reimburse an employee for the cost of dentures lor the employee purchased after the date of ratification in 2006 to a maximum of $750.00 during the life of this Collective Agreement.

(e) The Company will arrange and pay tor a vision care plan which will reimburse employees tor the purchase of Prescription glasses every two years tor all members of their family to a maximum of:

(f)

(g)

(h)

12.02 (a)

(b)

(C)

Effective January 29'11, 2006

January 29'h, 2007 .January 291

h, 2008

$220.00 $230.00 S240.00

The Company will continue the existing pension plan and its contributions to same.

LTD- The Company will. in consultation with the Union, arrange an L TO Plan to be selected by the Union. The premiums shall be deducted from the employee's pay and remitted by the Company.

Benetit changes in 2006 will he effective April I ' 1.

An employee will he enrolled in the non-statutory benefit plans commencing with the start of the month next tollowing the completion of his probationary period. Conditions of entitlement for employees as \\ell as dependents shall be according to the tcnns of the insurance plan.

The Company will pay its share of the premiums for non-statutory henetit plans commencing with the start of the month next following the completion of the employee· s probationary period.

The Company will discontinue payment of its share of non-statutory benefit plan premiums under the following circumstances;

(i) tennination of t:mployment, strike, at the end of the month fell lowing the month in which leave of absence commences, at the end of the month in which retirement occurs

(ii) ahsence tor medical reasons ()rmorc than si:x (6) months

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(iii) in case of maternity leave, payment ofOHIP premiums shall not continue

( iv) in the case of absence due to injury compensable under the Workplace Sa{etv and Insurance :let, after the twcltih complete month of absence.

( v) layoff or other absence not covered by the above of more than thirteen ( 13) weeks.

(vi) The employee will no longer be covered by the benefits in .-\rticle 12 after the end of the month in which the employee turns sixty-seven ( 6 7).

12.03 The Company \viii continue to pay its share of the premiums for Extended Health Care, Life lnsurance/A.D. & D., Dental and Vision Care t(x employees who retire at or after the age 60 until the employee reaches age 65, provided the cmployt.!e has at least 20 years seniority.

ARTICLE 13 :'<JO STRIKE-NO LOCKOUT

13.0 I The Union agrees that there shall be no strike, slowdown or stoppage of work so long as this Agreement continues to operate.

13.02 The Company agrees that then~ shall be no lockout so long as this Agreement continues to operate.

13.()3 Further, the parties shall actively co-operate to resume normal operations in the event of any such illegal interruption ofwork.

ARTICLE 14 PAY ON THE DAY OF IN.JLIRY

14.0 I An employee injured at work shall be paid in full for the Jay of the injury if he does not work the full day because of the injury on the advice of a medical doctor or by decision of the Company and if he does not receive pay from the Workplace Safety and Insurance Board or under other insurance provisions for this day.

ARTICLE 15 HEALTH AND SAFETY

15.01 There shall be a plant safety committee consisting oft\\O (2) n:presentatives of the Union and two (2) representatives of Management. This committee shall mct:t monthly at the mutual convenience of the parties to consider matters of health and satety nf employees in the rlant.

15.02 The Company agrees that there will be l\VO ( 2) worker certitied members.

15.03 :vtanagcment will provide the union with all injury/lost time reports.

ARTICLE 16 MISCELLANEOlJS PROVISIONS

16.0 I \Vherc the masculine pronoun is used in thi:-. Agreement it :-.hall refer to both gemkr'>. unless the contents ofthe paragraph specifically require othemi:-.c.

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I ().()2 The provisions or this Agreem~:nt may be amended hy mutual consent of the parties in writing.

16.03 The Company shall continue to provide proper safety devices and to maintain sanitary conditions in the plant. and insofar as possible to eliminate conditions hazardous to the health of the employees . It is understood that the phrase ''safety devices" as used herein does not include items of personal clothing, other than those presently provided by the Company.

16.04 .. Husband or wife" shall include a common law spouse and same sex spouse if the employee has previously notitied the Company in writing.

16.05 All Letters of Intent attached hereto form part ofthis Collective Agreement.

16.06 The Company will arrange and pay for an Employee Assistance program and the parties hereto agree to co-operate in the administration of the program.

16.07 The Company will comply with the requirements of the Employmem Standards Act respecting plant closures.

16.08 The Company will reimburse each employee required to v.·ear safety footwear for the purchase ofCSA approved satety f(Jotwear to a maximum of:

2006 2007 2008

$115.00 $120.00 $120.00

plus taxes once per calendar year.

For employees of the Mill Room, Tool Room and Maintenance Department the above allowance shall be doubled.

ARTICLE 17 WAIVER AND EXECUTION CLAUSE

17.01 It is the intent of the parties hereto that the provisions of this Agreement shall govern their entire relatinnship and shall be the sole source of any and all rights or ~!aims which either party may assert against the other in arbitration hereunder.

17.02 The provisions of this Agreement ~an not be amended, supplemented, res~inded or otherwise altered except by mutual agreement in writing hcrcalter signed by the parties hereto.

17.03 rhe parties hereto mutually agree not to seek. during the krm of this Agreement, to negotiate or bargain with respect to any matters pertaining to rates of pay, wages, hours L)f employment, or other conditions of employment, \\hether nr not cowred by thb agreement, or in the negotiations leading hereto, and any rights in that rcspe~t arc herchy expressly waived, as provided in Arti~le XX.

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ARTICLE 18 BEREAVEMENT LEAVE

I 8.0 I In the event of the death of a member of an employee's family, the employee will be granted a leave of absence for a reasonable time and will be reimbursed for time necessarily lost from work up to a maximum ofthree (3) days [five (5) days in the case of the death of a spouse or child}. The term "a member of the employee's family" means current spouse, parent of current spouse, child of current spouse, child or brother or sister or grandchild or grandparent of employee.

18.02 Employees will be reimbursed for one ( l) day according to the foregoing conditions in the event of the death of an employee's current brother-in-law, sister-in-law, son-in-law, daughter-in-law, aunt, uncle, or spouse's grandparent.

ARTICLE 19 EXHIBIT .. 8"

19.0 I Exhibit "B", attached hereto, is hereby made a part of this Agreement.

ARTICLE 20 DURATION OF AGREEMENT

20.01 This Agreement shall be effective from January 29th, 2006, to January 28th, 2009. Changes resulting from the 2006 negotiations . hall take effect as of the date of ratification except as expressly provided. There shall be retroactive wage adjustments for those persons who are employees as of the date of ratification.

20.02 Both parties agree to notify the other by giving written notice to the other party at least sixty (60) days but not more than ninety (90) days before January 281

h, 2009, of their intention to terminate or to propose amendments to the Agreement. In the event such notice is given the parties shall commence negotiations within fifteen ( 15) days thereafter, and if such negotiations are not concluded prior to the tennination date of this Agreement, it shall continue in full force and effect thereafter until a new Agreement is reached or until the conciliation procedure of the Ontario Labour Relations Act has been concluded. whichever occurs tirst.

PURSUANT to written notice of ratification given by the Union dated the 30th day of May, 2006, this Agreement is hereby signed this 30th day of May, 2006.

'I)AitKER-UANNIFIN CANADA

0-I{I~C/SEAL DIVISION, 0RILI.IA

U~l TEl> STEEl., PArER ANO FORESTRY, Rt 'BBF.R, MANllFACTURING, ENF.R<;Y, ALLIED

INot iSTRIAL .-\NO SF.RVICF. WORKERS INTERNATIONAL UNION

ON HE HALF OF ITS LOCAL 822,

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EXHIBIT "A"- CL\SSIFIC.\TIO~S -\Nil \V,\(;f.S

Dl•pa rt men t Classification .Jan.29/fl6 .Jan.29/07 .Jan.29/08

Preparation Preparation Op~rator S 15.X3 Sl6.30 Sl6.79

<;;iticone Prepan.llion Operat0r 15.83 16.30 16.79

:-dill f3atch M i:-. ing 16.92 17.43 17.95

Press Cell Operator 15.X3 16.30 16.79

Operator 15)\3 16.30 16.79

:\fould Maintainer & Repair 16.15 16.63 17.13

1-' ini-;hing Operator 15.~0 16.30 16.79

\!1aintenancc rv1 a intenancc Persun "·'' ' "'<'~" .tc ' , ,anJ-n; .• um'·"' '··· , I ~.56 19.12 19.69

lndu~trial Mechanic 24.5-l 25.2R 26.04

\1aintenance Fkctrician 24.54 25.2R 26.04

Janitor 15K) 16.30 16.79

loot Room ()ualificd Ma<.:hinist 20.71 21 .33 21.97

Journeyman Machinist-\l immum R:uc· 2~.54 25.28 26.04 1 m thl I·~ ·•rlwllllLJ In 1h~ { "'"!'·"'' 1

Trainee 15.69 16.16 16.6-l

t3r&t 13uiT. frim and Inspect 15.83 16.30 16.79

Shipping Sh ipper.'Recei vcr1Cicrk 15.X3 16.30 16.79

Shippingt lnventory Control 15.R3 16.30 16. 79

<)uality (_ ontrol Quality Control 15.X3 16.30 16.79

Lab r cchnician 15X1 16.30 16.79

'-ltarting raiL'-; in a cta~'>iliL·atinn ma~ he t\\Cnty cents (20c) lll\\Cr than the above rates. Employ.ec-; shall receive not lc-;s that the above rates alter ninety (90) day..; or continuous ~en icc in the cla~..,itication.

1\~rmanent Lead hand po~1t1o1b \\ill he posted and all applicant~ ''ill he considered. The ,tppointmcnt or discontinuation of an appointment shall he in the judgment of the Company. If the pcr"on holding a I c.td Hand appointment is 'bumped·. the employee doing the bumping does 11nt inherit the L cad I land appointment. The Lead Hand premium shall he seventy-five cents ( 75c) per hour. lw\\e\ cr Maintcmmce Lead Hand(s) premium shall be $1.)0 per hour.

rraining Premium - /\n employee other than a Lead Hand assigned to Ju lirst time, l(mnal training (C'd.:(m!ing "routine bmi(iarizatinn") wi(J be paid a premium or thirty-five cents (35¢) per hour '"'hilc training.

EXHIBIT ""U'': V.\LIIHTY OF ALHEDIENT

I r any court or hoard nr govcrnm..:nt ;lllih0rity ;hould rllk ;IllY p•.lrtinn or this Agrct:'ment contrai) 10

law. the remainder nf the Agr<:.'CinL'Ill shall remain in dfect.

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EXHIBIT .. C"- DtJES DEDUCTION AUTHORIZATION

Date : ________ _

l·.rti:ctive as of this date, I hereby authorize Parker Hanni lin Canada to deduct from wages due me, current monthly union dues and any unpaid regular monthly dues, tirst month's dues, which are l.'Stablished by Local Union 822 and to be deducted in accordance with the collective agreement, the amount of which deduction shall have been notitied by the Union to tht! Company from time to time. Said dues to be remitted by tht! Company to the Treasurer of Local 822, USWA.

fhis assignment and authorization shall be irrevocable in accordance \\ ith the provisions of Article 5.05 of the collective agreement between the Union and the Company and I acknowledge that I understand the provisions of Article 5.05 thereof.

Street Address:

Town: _________ Telephone:

Clock Card No. ________ Department Number

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LETTER OF INTENT #1

Re: Casual Cleaners

In consideration of the past practice regarding employment of casual cleaners, the following conditions for their employment will apply:

I. Hourly wages effective .January 29, 2006 $14.29

January 29, 2007 $14.72

January 29, 2008 $15.16

2. There shall be no restrictions on scheduling

3. They shall have no fringe benefits or seniority

4. They shall pay no Union dues unless they work thirty-two (32) hours or more in a calendar month or the Union adopts an hourly dues amount which is no greater than 1/ 160 of the monthly amount.

5. They will not displace any other employee from his usual schedule.

6. If there is a substantial change in the hours worked by the casual cleaners or in the number of casual cleaners, the Company will discuss this with the Union in an effort to resolve the change.

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LETTER OF INTENT #2

During the term of the Collective Agreement, the Company states its intelllion to endeavour

to follow certain practices:

Kc: Overtime

rhe Company will endeavour to continue the practice of asking Press Room employees to work

P\ crtime on a rotating basis.

If the Company is unable to follow its intended practices, it will discuss the circumstances and

alternatives with the Union.

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LETTt:R OF INTENT #3

Dilling the tenn of the Collective Agreement. the Company states its intention to endea\'our

to follow certain practices:

Re: Shift Changes

If there is a change in the number of shitis in the Press Depanment or B.T. , & 1.. the change will be

effective on a Monday and the Company will give the employees affected an opportunity to express

their shift prderences by the preceding Tuesday and will be notified by Wednesday as to what shift

they will be working on.

If the Company is unable to follow its intended practices it will discuss the circumstances and

alternatives with the Union.

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LETTER. OF INTENT #4

Re: !\I ill Room-Shower Time

rhc practice ofshO\\Cr time for Mill Room employees will be continued as long as there is no abuse.

LETTF.R OF INTENT #5- RE: ARTICLE 6.03

The hours and schedules in individual departments or functions may be changed by mutual

agreement of management and the ernployees in the department or function and the Union, provided

the Union agreement shall not unreasonably be refused.

LETTER OF INTENT #6

The Local Union President of his/her designate will be allowed a tilh:en ( 15) minute interview

during working hours with each new employee individually or in groups during the tirst week of

being hired.

LETTER OF INTENT #7

The Company will provide a lockable filing cabint!t in an open area lor the Union's use and will

provide reasonable access to a telephone and reasonable access to a meeting room when required

for confidential discussions.