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JUL 1 9 2007

COLLECTIVE BARGAINING IN ORMATION SERVICES

C ~-~· ~~· A . r·,Q, .: ;ec~~M· X greeiJillQRI '

between

&.111&1 (hereinafter referred to as the "Company")

and

affiliated with the International Brotherhood of Teamsters (hereinafter referred to as the "Union")

EXPIRY DATE: July 31st 2010

FILE No . L[.aG ~OJ{ cro · CERT. FILE

CERT. DATE~- fi£15-/9-61 TOTALEMPS ~ ··-EFF. DATE I o-juvr.:Lou1 EXP. DATE 31- 'J<.t L-,.}o I 0

CODING CONTROL D~lE CflDER

!DENT CODED l{j)cf/.t ft 11'7

RECEIVED-/

UNION I /I EMPLOYER I OTHER

COLLECTIVE AGREEMENT --------------------------------------------

between

GEORGE ARMSTRONG CONSTRUCTION LIMITED (hereinafter referred to as the "Company")

and

TEAMSTERS LOCAL UNION 938 affiliated with the

International Brotherhood of Teamsters (hereinafter referred to as the "Union")

EXPIRY DATE: July.31st 2010

INDEX --------------

ARTICLE# CONTENTS PAGE#

1 RECOGNITION 1 2 DEFINITION 1 3 RELATIONSHIP, NON-DISCRIMINATION

AND UNION SECURITY 2 4 MANAGEMENT RIGHTS 3 5 NO STRIKE- NO LOCKOUTS 4 6 STEWARDS 5 7 GRIEVANCE PROCEDURE 6 8 ARBITRATION 7 9 DISCHARGES 9 10 MANAGEMENT GRIEVANCES 10 11 LAYOFFS AND REPORTING PAY 11 12 PROBATIONARY PERIOD 12 13 SENIORITY 12 14 GENERAL 13 15 WAGE RATES, HOURS OF WORK,

TRANSPORTATION, BOARD & ROOM, STATUTORY HOLIDAYS, VACATIONS WITH PAY (SCHEDULE "A") 14

16 DURATION OF AGREEMENT 15

SCHEDULE "A" 16

MEMBER'S REMINDER 19

ARTICLE 1

RECOGNITION

Section 1.1

The Company hereby recognizes the Union as the sole and exclusive bargaining agent of all employees of George Armstrong Company Limited in the District of Rainy River, Thunder Bay and Kenora (including the Patricia portion) save and except foremen, persons above the rank of foreman, office and sales staff, persons regularly employed for not more than twenty-four (24) hours per week and students employed during the school vacation period.

ARTICLE2

DEFINITION

Section 2.1

"Employee" shall include only such persons coming within the scope of the bargaining unit described in Article 1.

"Steward" shall mean an employee of the Company duly accredited in writing to the Company as such by the Union.

"Job Superintendent" shall mean an official of the Company in charge of a job in a certain area.

"General Superintendent" shall mean an official of the Company having general supervision of all work carried on by the Company.

"General Manager" shall mean the official designed as such by the Company.

ARTICLE3

RELATIONSHIP, NON-DISCRIMINATION AND UNION SECURITY

Section 3.1

Each of the parties hereto agrees that there will be no discrimination, interference, restraint or coercion exercised or practiced upon any employee because of membership or lack of membership in the Union, which is hereby recognized as a voluntary act on the part of the individual concerned.

Section 3.2

The Union agrees that neither the Union or its members will intimidate or coerce any employee in respect to his right to work or in respect to Union activity or membership, and further that there shall be no solicitation of employees for Union membership or dues on Company time. The Union further agrees that the Company may dismiss or discipline for any violation of this provision.

Section 3.3

Any new employee who has joined the Company after the 30th day of August 1, 1967, or who will join the Company after the signing of this Agreement, upon completion of thirty (30) days of continuous service as of September 30, 1971, or thereafter must, as a condition of employment, pay the equivalent of monthly Union dues to the Union provided, however, that if a person is rehired within a period not exceeding four (4) months after cessation of a period of employment such intervening period shall not be counted as a break in his term of employment for the purposes of this paragraph only, and it is clearly understood and agreed that it is not necessary for any new employee to actually join the Union provided the amount of monthly union dues is paid.

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The Company, as a convenience to employees who are members of the Union, will deduct dues from the pay of each employee who has presented a dues deduction authorization card in a form to be approved by the Union and the Company.

All remittances to the Union will be accompanied by a list of employees from whom Union dues have been deducted.

ARTICLE4

MANAGEMENT RIGHTS

Section 4.1

The Union agrees that it is the exclusive function of the Company:

(a) to conduct its business in all respects in accordance with its commitments and responsibilities, including the right to manage the jobs, locate, extend, curtail or cease operations, to determine the number of men required at any or all operations, to determine the kinds and locations of machines, tools and equipment to be used and the schedules of production, to judge the qualifications of the employees and to maintain order, discipline and efficiency;

(b) to hire, discharge, classify, transfer, promote, demote, layoff, suspend or otherwise discipline employees, provided that a claim by an employee that he has been discharged without reasonable cause shall be subject to the provisions of the Grievance Procedure;

(c) to make, alter from time to time, and enforce reasonable rules of conduct and procedure to be observed by the employees and reasonable notice thereof shall be given to the employees affected. It is agreed that these functions shall not be exercised

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in a manner inconsistent with the express provisions of this Agreement and the Union acknowledges that the Company fully retains all rights and functions of management except to the extent by which they are limited by a specific provision of this Agreement.

ARTICLE 5

NO STRIKE- NO LOCKOUTS

Section 5.1

The Union and the Company recognize the mutual value of improving by all proper and reasonable means the productivity of the individual workmen and both will undertake individually and jointly to promote such increased productivity.

Section 5.2

During the lifetime of this Agreement, the Union agrees there will be no strike, slowdown or picketing or any other act which will interfere with the regular schedule of work and the Company agrees that there will be no lockout. The Company shall have the right to discharge or otherwise discipline employees who take part in or instigate any strike, picketing or slowdown or any other act which interferes with the regular schedule of work.

Section 5.3

The Union shall not involve the Company in any dispute which may arise between the Union and any other Company and the employees of such other Company.

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ARTICLES

STEWARDS

Section 6.1

The Company will recognize for each separately located project a Union Steward who shall be elected by employees who are members of the Union and pending such election who are appointed by the Union. The Steward shall be a regular employee of the Company in the bargaining unit during his term of office and shall have had at least three (3) months of service with the Company and be on the seniority list. The duty of the Steward will be to receive, investigate and settle grievances when requested to do so, in accordance with the Grievance Procedure and the Steward will be the principal spokesman.

Section 6.2

The Union will notify the Company in writing of the name of each Steward from time to time, and the Company will not be required to recognize a Steward until it has been notified in writing by the Union of the name of the employee elected or so appointed.

Section 6.3

The Union acknowledges that the Steward has regular duties to perform for the Company and that he will not leave his regular duties without his obtaining permission from his foreman.

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ARTICLE 7

GRIEVANCE PROCEDURE

Section 7.1

The parties to this Agreement are agreed that it is of the utmost importance to adjust complaints and grievances as quickly as possible.

Section 7.2

It is understood and agreed that an employee does not have a grievance until he has discussed the matter with his foreman and given him an opportunity of dealing with the complaint.

Section 7.3

Grievances properly arising under this agreement shall be adjusted and settled as follows:

Step 1 Within five (5) days after the circumstances giving rise to the grievance occurred or originated the aggrieved employee shall present his grievance orally or in writing to the Job Superintendent or other official of the Company named by the Company to handle grievances at this step. If a settlement satisfactory to the employee concerned is not reached within two (2) full working days, a grievance may be presented as follows at any time within two (2) full working days thereafter.

Step 2 The aggrieved employee may, with or without his steward, present his grievance which shall be reduced to writing on a form supplied by the Union, to the General Superintendent. Should no settlement satisfactory to the employee be

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reached within two (2) full working days, the next step in the Grievance Procedure may be taken at any time within two (2) full working days thereafter.

Step 3 The aggrieved employee may have his Steward and/or the Business Agent and/or the International Representative of the Union submit the grievance to the General Manager. A representative of the International Union may be present at this stage if his presence is required by either party. If a satisfactory settlement is not reached within ten (1 0) days from this meeting and if the grievance is one which concerns the interpretation or alleged violation of the Agreement, the grievance may be submitted to arbitration as provided in Article 13 below at any time within fourteen (14) days thereafter but no later.

ARTICLES

ARBITRATION

Section 8.1

Both parties to this Agreement agree that any grievance concerning the interpretation or alleged violation of this Agreement, which has been properly carried through all the steps of the grievance procedure outlined in Article 7 and which has not been settled, may be referred by the Union, with the consent of the employee, or by the Company to arbitration in the manner and subject to the conditions and provisions hereafter set out and the decision of the Arbitrator or Board of Arbitration shall be final and binding upon the parties and upon all employees.

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Section 8.2

Where under the provisions hereof, a grievance may be referred to arbitration and the Union desires to so refer it, the Union shall give written notice of such desire to the Company, accompanied by the written consent of the employee, within ten (1 0) working days after the written decision of the General Manager has been given. The Union and the Company may agree upon the arbitrator to hear the matter, and for this purpose will exchange nominations.

Failing agreement between the parties within six (6) days as to the arbitrator to be appointed, the matter may be referred within four (4) days thereafter to a Board of Arbitration composed of three (3) members, and either of the parties may inform the other party in writing of its desire to submit to arbitration by a three-man Board and the notice shall contain the name of the first party's appointee to an Arbitration Board. The recipient of the notice shall, within five (5) days, advise the other party of the name of its appointee to the Arbitration Board. The two appointees so selected shall, within five (5) days of the appointment of the second, both appoint a third person who shall be a Chairman. If the recipient of the notice fails to appoint an arbitrator or if the two appointees fail to agree upon a chairman within the time limit, the appointment shall be made by the Minister of Labour for Ontario upon the request of either party. The arbitrator or Arbitration Board shall hear and determine the difference or allegation and shall issue a decision, and the decision shall be final and binding upon the parties and upon the employees affected by it. The decision of a majority shall be the decision of the Arbitration Board, but if there is no majority, the decision of the Chairman shall govern.

Section 8.3

The Union and the Company shall each be responsible for one half (112) of the expense of the fee payable to the arbitrator, and in case the matter is dealt with by a three-man Board of Arbitration, the Union and the Company shall each be responsible for the expenses and fees of its nominees to such Board and for one-half (112) of the expenses and of fee payable to the Chairman.

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Section 8.4

The Board of Arbitration shall not have any power to alter or change any of the provisions of this Agreement or to substitute any new provisions for any existing provisions nor to give any decision inconsistent with the terms and provisions of this Agreement.

Section 8.5

(a) The nature of the grievance, the remedy sought, and the section or sections of the Agreement which are alleged to have been violated shall be set out in the written record of the grievance and may not be subject to change after completion of Step No. 3 of the Grievance Procedure.

(b) In determining the time which is allowed in the various steps, Sundays and statutory holidays shall be excluded and any time limits may be extended by agreement in

writing.

(c) If advantage of the provisions of Articles 7 and 8 hereof is not taken within the time limits specified therein or as extended in writing as set out above, the grievance shall be deemed to have been abandoned and may not be re­opened.

ARTICLE 9

DISCHARGES

Section 9.1

In the exercise of its management rights to discharge employees for cause as set forth in Article 4, the Company agrees that the processing of a grievance may commence at the appropriate step by the filing within five (5) days after the discharge of a written grievance

9

with the official on the level above that of the person who discharged the griever, and in case the discharge was effected by the General Manager himself, then at Step 3 by the filing of the written grievance with the General Manager within five (5) days of the discharge.

A grievance filed in accordance with Article 7 may be settled by confirming the management's action in discharging the employee or by reinstating the employee with full compensation for time lost or by any other arrangement which is just and equitable in the opinion of the conferring parties. If the matter is not settled through the Grievance Procedure and is taken to arbitration and it is finally determined by a Board of Arbitration that the Company did not have reasonable cause to discharge him, he shall be reinstated without loss of seniority and paid his wages at his regular hourly rate for the time lost, less the amount earned by him during the time lost since the date of discharge.

ARTICLE 10

MANAGEMENT GRIEVANCES

Section 1 0.1

It is understood that the Company may file a grievance with the Union and that if such complaint is not settled to the satisfaction of the parties concerned, it may be treated as a grievance and referred to arbitration in the same way as a grievance of an employee. Such grievance shall be processed at Step 3 of the Grievance Procedure as set out in Article 7 hereof.

ARTICLE 11

LAYOFFS AND REPORTING PAY

Section 11.1

When an employee is permanently laid off, he shall receive his pay, his Unemployment Insurance Book, and his Vacation with Pay Book, fully stamped, within three (3) working days.

Section 11.2

When an employee quits he will receive his pay, his Unemployment Insurance Book, and his Vacation with Pay Book (fully stamped) on the next regular pay day.

Section 11.3

Except in case of inclement weather, whenever an employee has been scheduled or notified to report for work and upon his arrival at the work site finds no work available in the occupation for which he was scheduled or notified to report, unless he has received reasonable notice not to report he shall be paid for two (2) hours at his regular hourly rate on the occupation for which he was scheduled or notified to report. If he is offered other work for which he is physically fit for two (2) hours or more that the standard hourly wage rate of the occupation for which he was scheduled or notified to report and he refuses such work, he shall not be eligible to receive the two (2) hours' reporting pay above provided for.

For the purposes of this Section, notification by telephone to an employee's home prior to the time an employee actually leaves home for work shall be considered reasonable notice whether or not it is personally received by the employee. If the employee does not have a listed telephone, he shall furnish the Company with a number which can be called for such purpose, and in such case notification to any person at the number so designated two (2) hours before an

11

employee's scheduled starting time shall be considered notification to the employee. It shall be the responsibility of the employee to keep the Company advised of a reliable means of prompt communication with him.

ARTICLE 12

PROBATIONARY PERIOD

Section 12.1

New employees of the Company shall be considered probationary employees until they have had three (3) months' continuous service with the Company. Grievances may not be presented in connection with the dismissal or layoff of probationary employees unless the dismissal or layoff is claimed to be a discrimination for Union activity.

ARTICLE 13

SENIORITY

Section 13.1

(a) Employees may acquire seniority by being employed three (3) months continuously in which event the employee's seniority will date back to the commencement of his last employment by the Company.

(b) Where an employee acquires seniority, his name shall be placed on the seniority list in order of his seniority.

(c) Seniority shall be broken for the following reasons:

i) if the employee quits;

ii) if the employee is discharged;

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iii) if the employee is absent from work without providing a reason satisfactory to the Company or without the consent of the Company;

iv) if the employee fails to return to work within two (2) working days after being notified to report for work;

v) if he is laid off for a continuous period equal to the seniority he had acquired at the time of such layoff period or for a continuous period of nine (9) months, whichever period shall be the lesser.

(d) Any notice to an employee under this agreement may be given either personally (either directly or by telephone) or by telegram or prepaid registered post addressed to the employee at his last address shown on the seniority list or on the payroll of the Company and such notice shall be deemed to have been given on the day following delivery to the telegraph or postal authorities.

(d) In all layoffs the Company shall consider the training, skill, efficiency and integrity of the employee and where the Company is satisfied that as between two or more employees these qualifications are relatively equal, preference shall be given to the employee with the greatest seniority. Following a layoff procedure the decision of management as to evaluation of training, skill, efficiency and integrity shall be final, and shall not be subject to a grievance but the employee affected or the Union may make representations to the General Manager.

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ARTICLE 14 GENERAL

Section 14.1

The Union will co-operate with the Company to prevent wasteful practices.

ARTICLE 15

WAGES RATES. HOURS OF WORK. TRANSPORTATION. BOARD AND ROOM. STATUTORY HOLIDAYS. VACATIONS WITH PAY (SEE SCHEDULE A-NEW RATES)

Section 15.1

Attached hereto as Schedule "A" to this Agreement is a schedule of wage rates, hours of work, transportation, board and room, statutory holidays and vacations with pay, which is hereby made a part of this Agreement.

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ARTICLE 16

DURATION OF AGREEMENT

Section 16.1

This Agreement shall become effective on the 1 01h day of July 2007

and shall remain in effect until the 31st day of July 2010 and shall

continue in force from year to year thereafter, unless either party shall

furnish the other with notice of termination of or proposed revision of

this Agreement not more than ninety (90) days and not less than thirty

(30) days before the 31st day of July, 2010 or in a like period in any

year thereafter.

In WITNESS WHEREOF each of the parties hereto have caused this

Agreement to be signed by its duly authorized representatives as of

the date and year first above written.

DATED and SIGNED this 1 01h day of 4!!JY._2007.

GEORGe ARMSTRONG CO P. ·IMITED

·~

TEAMSTERS LOCAL UNION 938

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SCHEDULE "A" NEW RATES

WAGE RATES

The following hourly rate of wages shall be in effect for the duration of this Agreement.

CLASSIFICATION july07 july08 July 09 July 10

Engineers (licensed) operating cranes, clams, shovels, drag lines, gradalls and similar equipment $22.00 $22.50 $23.00 $23.50

Engineers (in training) operating cranes, clams, shovels, drag lines, gradalls and similar equipment $18.00 $18.50 $19.00 $19.50

Grader Operators - A- $18.00 $18.50 $19.00 $19.50 -B $18.00 $18.50 $19.00 $19.50

Crawler-type tractors and bulldozers (over 07) scrapers, front-end loaders with attachments, hydraulic backhoes $18.00 $18.50 $19.00 $19.50

Crawler-type tractors and bulldozers 6(07 and under) $18.00 $18.50 $19.00 $19.50

Mechanic (full qualified) licensed $20.00 $20.50 $21.00 $21.50

Roller Operators (earth or gravel) $15.70 $16.20 $16.70 $17.20

Welder (fully qualified) licensed $18.30 $18.80 $19.30 $19.80

Welder (unlicensed) $18.30 $18.80 $19.30 $19.80

Farm & Industrial Tractor Operator with attachments $16.05 $16.55 $17.05 $17.55

Crush Operator $18.80 $19.30 $19.80 $20.30

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July 07 July08 July 09 July 1 0

Mechanic's Helper $16.40 $16.90 $17.40 $17.90

Service Truck $15.70 $16.20 $16.70 $17.20

Dump Truck $16.50 $17.00 $17.50 $18.00

Tractor Trailer $16.70 $17.20 $17.70 $18.20

Skilled Labourers: Ready-Mix Truck Operator $16.50 $17.00 $17.50 $18.00

Float Operator $16.00 $16.50 $17.00 $17.50

Batcherman $16.55 $17.05 $17.55 $18.05

Labourer $13.75 $14.25 $14.75 $15.25

Skilled Labourer $13.75 $14.25 $14.75 $15.25

Flagman $11.00 $11.50 $12.00 $12.50

Carpenters and Carpenter apprentices employed by the Company in the Districts of Kenora (including Patricia portion) and Thunder Bay shall come under the jurisdiction of this Agreement and will be paid wages and conditions as per current agreements between the Carpenters Union and respective contractors in the Districts of Kenora (including Patricia portion) and Thunder Bay.

Any employee paid over the rate set out above shall not have his rate reduced by reason of the introduction of his wage schedule, but shall retain his existing rate while he is performing the duties of his present classification until increases in the wage scale eliminate the differentials.

No change of rate will be made for the performance of work in another classification for a period not in excess of four (4) hours.

For any shift commencing at 4:00 p.m. or later an additional ten cents (1 O!t) per hour will be paid.

When Ready-Mix-Truck Operator batches his own load, add ten cents (10¢) to the hourly rate.

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HOURS OF WORK

The regular hours of work for employees other than watchmen, engaged in work covered by this Agreement shall consist of not more than fifty­five (55) hours per week. Work performed in excess of fifty-five (55) hours per week, excluding lunch periods and travelling time, shall be paid for at the rate of one and one-half (1/2) times the employee's regular hourly rate.

ROOM AND BOARD

Every employee covered by this Agreement who is required in writing by the Company to report to a job location more than twenty-five (25) miles from the Company headquarters in the Town of Fort Frances, which requires the employee to live away from his ordinary place of residence, shall be provided with suitable free room and board by the Company.

STATUTORY HOLIDAYS

All work performed by an employee covered by this Agreement on his assigned day off and the following declared Statutory Holidays

New Year's Day Good Friday Victoria Day Canada Day

Labour Day Christmas Day Thanksgiving Day

shall be paid for at the rate of double the employee's regular hourly rate.

VACATION ALLOWANCE

Vacation pay credits shall be calculated and paid in accordance with the Ontario Employment Standards Act.

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A MEMBER'S REMINDER

Application for a Withdrawal Card should be made immediately when a member is terminated, laid off, on W.S.I.B. or off work due to illness or parental leave.

THIS IS THE RESPONSIBILITY OF THE MEMBER HIMSELF!

Withdrawal cards are valid only when you are not working .

MEMBERS ARE REMINDED that Application for a Withdrawal Card can be made by calling the Local Union Office at 905-0062 or 1-800-263-9938

Upon returning to work either telephone or send your Withdrawal Card directly to the Local Union office.

MEMBERS ARE FURTHER ADVISED that where they do not take a Withdrawal card for reasons of their choice, where they are in excess of three (3) months delinquent in dues, that a Re-initiation Fee will restore good standing for the purpose of clearing arrears.

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