CAW TCA - lrb.bc.ca · (CAW - CANADA), LOCAL 114 CAW TCA CA~ADA November 1, 2007 - October 31, 2010...

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COLLECTIVE AGREEMENT between CLIPPER NAVIGATION and NATIONAL AUTOMOBILE, AEROSPACE TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (CAW - CANADA), LOCAL 114 CAW TCA www.caw.ca November 1, 2007 - October 31, 2010

Transcript of CAW TCA - lrb.bc.ca · (CAW - CANADA), LOCAL 114 CAW TCA CA~ADA November 1, 2007 - October 31, 2010...

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COLLECTIVE AGREEMENT

between

CLIPPER NAVIGATION

and

NATIONAL AUTOMOBILE, AEROSPACE TRANSPORTATION AND GENERAL

WORKERS UNION OF CANADA (CAW - CANADA), LOCAL 114

CAW TCA CA~ADA

www.caw.ca

November 1, 2007 - October 31, 2010

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Collective Agreement between Clipper Navigation and CAW Local 114

TABLE OF CONTENTS

ARTICLE 1 - PREAMBLE .................................................................................................................... 1

1.1 Purpose ..................................................................................................................................... 1 1.2 Service Business ....................................................................................................................... 1

ARTICLE 2 - UNION RECOGNITION AND DUES DEDUCTION ......................................................... 1

2.1 Recognition of Exclusive Bargaining Agent.. ........................................................ '" ................... 1 2.2 Union Membership ..................................................................................................................... 1 2.3 Union Activities ................................................................. '" ...................................................... 2 2.4 Union Bulletin Board .................................................................................................................. 2 2.5 Recognition of Picket Lines ........................................................................................................ 2 2.6 Successorship ............................................................................................................................ 3 2.7 Union Checkoff: Assignment of Wages ...................................................................................... 3 2.8 Union Checkoff: Remittances ..................................................................................................... 3 2.9 Union Shop Sign ........................................................................................................................ 3 2.10 Performance of Bargaining Unit Work ........................................................................................ 3 2.11 Paid Education Leave ................................................................................................................ 4 2.12 Social Justice Fund .................................................................................................................... 4 2.13 Local Administration Fund .......................................................................................................... 4

ARTICLE 3 - GRIEVANCE PROCEDURE ........................................................................................... 4 3.1 Grievance Defined ..................................................................................................................... 4 3.2 Informal Step .............................................................................................................................. 4 3.3 Step One .................................................................................................................................... 4 3.4 Step Two .................................................................................................................................... 5 3.5 Expedited Arbitration Process .................................................................................................... 5 3.6 Time Limits ................................................................................................................................ 7

ARTICLE 4 - DISCIPLINE, SUSPENSION OR DiSMiSSAL ................................................................. 7 4.1 Discipline and Discharge ............................................................................................................ 7 4.2 Complaints ................................................................................................................................. 8

ARTICLE 5 - GENERAL HOLIDAYS ................................................................................................... 8

5.1 General Holidays ....................................................................................................................... 8 5.2 Eligibility for General Holidays .................................................................................................... 9 5.3 Payment for General Holiday ..................................................................................................... 9 5.4 Working on a General Holiday ................................................................................................... 9 5.5 General Holiday on a Regular Day Off ....................................................................................... 9 5.6 Overtime Rates on a General Holiday ...................................................................................... 10 5.7 Definition of Work on a General Holiday ................................................................................... 10 5.8 Loss of General Holiday Pay .................................................................................................... 10

ARTICLE 6 - VACATIONS ................................................................................................................. 10

6.1 Vacation Eligibility: Two Weeks ................................................................................................ 10 6.2 Vacation Eligibility: Three Weeks ............................................................................................. 10 6.3 Vacation Eligibility: Four Weeks ............................................................................................... 10 6.4 Vacation Scheduling ......................................................... '" .................................................... 10 6.5 General Holiday During Vacation ............................................................................................. 11

November 1 , 2007 - October 31, 2010

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Collective Agreement between Clipper Navigation and CAW Local 114

6.6 Vacation Payout ....................................................................................................................... 11

ARTICLE 7 - HEALTH AND WELFARE ............................................................................................. 11

7.1 Health and Welfare Plan .......................................................................................................... 11 7.2 Employee Assistance Program ................................................................................................ 11

ARTICLE 8 - PROBATIONARY AND TRAINING AND TRIAL PERIODS .......................................... 12

8.1 Probationary Periods ................................................................................................................ 12 8.2 Training and Trial Period .......................................................................................................... 12

ARTICLE 9 - SENIORITY ................................................................................................................... 12

9.1 Frozen Seniority ....................................................................................................................... 12 9.2 Seniority Draw .......................................................................................................................... 12 9.3 Departmental Seniority ............................................................................................................. 13 9.4 Seniority Lists ........................................................................................................................... 13 9.5 Shift Preference by Seniority .................................................................................................... 13 9.6 Scope of Seniority .................................................................................................................... 13 9.7 Layoff and Recall ..................................................................................................................... 14 9.8 Loss of Seniority ...................................................................................................................... 14 9.9 Service Credits for Re-Hires ..................................................................................................... 15

ARTICLE 10 - POSTING OF POSiTIONS .......................................................................................... 15

10.1 Job Postings ............................................................................................................................ 15 10.2 Employee Applications ............................................................................................................. 15 10.3 Postings and Seniority ............................................................................................................. 16 10.4 Notice of Training ..................................................................................................................... 16

ARTICLE 11 - HOURS OF WORK AND OVERTIME ......................................................................... 16

11.1 Normal Workweek .................................................................................................................... 16 11.2 Shift Bidding ............................................................................................................................. 16 11.3 Assignment of Overtime ........................................................................................................... 17 11.4 Shift Trades .............................................................................................................................. 18 11.5 Reporting Pay .......................................................................................................................... 18 11.6 Scheduling by Seniority ............................................................................................................ 18 11.7 Consecutive Days Off .............................................................................................................. 18 11.8 Meals Breaks ........................................................................................................................... 18 11.9 Rest Periods ............................................................................................................................ 19 11.10 Blanking of Positions ............................................................................................................ 19 11.11 Overtime Banking ................................................................................................................. 20 11.12 Work Outside of Victoria ....................................................................................................... 20 11.13 Records of Shift Changes .................................................................................................... 21

ARTICLE 12 - LEAVES OF ABSENCE .............................................................................................. 21

12.1 General Leaves of Absence ..................................................................................................... 21 12.2 Extension of Leaves ................................................................................................................. 22 12.3 Seniority While on Leave .......................................................................................................... 22 12.4 Placement Upon Return from Leave ........................................................................................ 22 12.5 Time off for Bargaining Committee ........................................................................................... 22 12.6 Union Leave ............................................................................................................................. 22 12.7 Sick Leave ............................................................................................................................... 23

November 1, 2007 - October 31,2010 11

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12.8 Family Responsibility Leave ..................................................................................................... 23 12.9 Compassionate Care Leave ..................................................................................................... 23 12.10 Bereavement Leave ............................................................................................................. 23 12.11 Court Leave ......................................................................................................................... 24 12.12 Maternity Leave and Child Care Leave ................................................................................. 24 12.13 Medical Exarninations .......................................................................................................... 24

ARTICLE 13 - HEALTH AND SAFETY ...........................................................................•.................. 25

13.1 Safety Committee .................................................................................................................... 25 13.2 Equipment Standards ............................................................................................................... 25 13.3 Disclosure of Reports ............................................................................................................... 25 13.4 First Aid Certificates ................................................................................................................. 25 13.5 Accident or Injury During Work ................................................................................................. 25 13.6 Lunch and Washroom Facilities ............................................................................................... 26 13.7 Additional Rights and Obligations ............................................................................................. 26

ARTICLE 14 - REHABILITATION .................................................................................•.................... 26

14.1 Accommodations ..................................................................................................................... 26 14.2 Requests in Writing .................................................................................................................. 26

ARTICLE 15 - TRAINING .......................................................................................•..•........................ 26

15.1 Payment for Training ................................................................................................................ 26 15.2 Cross Training .......................................................................................................................... 26 15.3 Voluntary Training .................................................................................................................... 27 15.4 Joint Training Committee ......................................................................................................... 27 15.5 Refresher Training ................................................................................................................... 27

ARTICLE 16 - WAGES •.....................•..............................•.........•.....•................................................. 27

16.1 Pay Dates and Statements ....................................................................................................... 27 16.2 Pay Rates Defined ................................................................................................................... 27 16.3 Premiums and Commissions .................................................................................................... 28 16.4 Lead Hands .............................................................................................................................. 28 16.5 New Positions .......................................................................................................................... 28 16.6 Group RRSP Plan .................................................................................................................... 28

ARTICLE 17 - MANAGEMENT RIGHTS .............•.•...............•......................•..................................... 29

ARTICLE 18 - ANTI·DISCRIMINATION AND HARASSMENT ............................•.•.•••.....................•.. 29

18.1 Discrimination Prohibited .......................................................................................................... 29 18.2 Discrimination and Harassment Free Environment... ................................................................ 29 18.3 Harassment Defined ................................................................................................................ 29 18.4 Harassment Complaints ........................................................................................................... 29

ARTICLE 19 - GENERAL ................................................................................................................... 30

19.1 Job Abolishment ...................................................................................................................... 30 19.2 Severance Pay ......................................................................................................................... 30 19.3 Technological Change ............................................................................................................. 30 19.4 Contracting Out ........................................................................................................................ 30 19.5 Personal Files .......................................................................................................................... 30 19.6 Negotiation Costs ..................................................................................................................... 31

November 1. 2007 - October 31, 2010 iii

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19.7 Uniforms .................................................................................................................................. 31 19.8 Employee Negligence .............................................................................................................. 31 19.9 Cooperation and Incidental Work ............................................................................................. 31 19.10 On-board Employee Assistance ........................................................................................... 32

ARTICLE 20 - DURATION ................................................................................................................. 33

20.1 Term of Agreement .................................................................................................................. 33

SCHEDULE "A" - ARBITRATORS .................................................................................................... 34

SCHEDULE "B" - VICTORIA WAGES ............................................................................................... 35

APPENDIX "A" HEALTH, SAFETY AND ENVIRONMENT ................................................................ 36

1. Company Duties ...................................................................................................................... 36 2. Joint Health and Safety Committee .......................................................................................... 36 3. Right to Refuse ........................................................................................................................ 37 4. Accident and Incident Inspection .............................................................................................. 38 5. Education and Training ............................................................................................................ 38 6. Disclosure of Information .......................................................................................................... 38 7. Right to Accompany Inspector ................................................................................................. 38 8. Access to the Workplace .......................................................................................................... 38 9. National Day of Mouming ......................................................................................................... 38 10. Proteclive Clothing and Equipment .......................................................................................... 39 11. Employment of Disabled Workers ............................................................................................ 39 12. First Aid Attendants .................................................................................................................. 39 13. Injured Worker Provisions ........................................................................................................ 39

APPENDIX "B" WORKPLACE HARASSMENT ................................................................................ 40

APPENDIX "C" Reservation Agents - Duties and Responsibilities .............................................. 43

APPENDIX "D" Dock Hand - Duties and Responsibilities ............................................................. 44

APPENDIX "E" Lead Hand - Duties and Responsibilities ............................................................. 45

LETTER OF UNDERSTANDING #1 .................................................................................................... 46

November 1, 2007 - October 31,2010 IV

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Collective Agreement between Clipper Navigation and CAW Local 114

ARTICLE 1 - PREAMBLE

1.1 Purpose

The general purpose of this Agreement is to secure for the Company and the employees the full benefits of orderly and legal collective bargaining, and to ensure to the fullest extent possible, the safety and physical welfare of the employees. It is recognized by this Agreement to be the duty of the Company and the employees to co­operate fully, individually and collectively for the advancement of said conditions, so that a stable and harmonious relationship may be established and maintained.

1.2 Service Business

The Company is engaged in a service business, operating a terminal in Victoria for marine transport carriers. The Company's goal is to expand its business by offering terminal services to other maritime companies who may offer passenger service to the Port of Victoria. To this end, the Company is wholly dependent upon the goodwill of the vessel operators and passengers who use its terminal. Additionally, the Company relies upon its relationships with its customers, its affiliates and its vendors for the continued conduct of its business. Prompt, reliable service and courteous, friendly personnel are therefore recognized as an essential part of the Company's business.

ARTICLE 2 - UNION RECOGNITION AND DUES DEDUCTION

2.1 Recognition of Exclusive Bargaining Agent

(a) The Company recognizes the Union as the sole collective bargaining agent of the employees covered by this Agreement. Properly designated representatives of the Union shall be recognized by the Company in discussing those matters affecting the relationship between the Company and the employees who are members of the Union and are affected by this Agreement.

(b) When hiring, the Company will consider CAW referrals in selecting candidates for interviewing and prior to considering non-CAW referrals.

2.2 Union Membership

(a) As a condition of employment, all employees working in positions covered by this Agreement shall become members of the Union and commence paying Union dues within twenty-one (21) calendar days of employment. Employees shall complete authorization forms providing for the deduction from their wages the amount of the regular monthly dues uniformly required by the Union, or after seven (7) days notice will be terminated by the Company.

November 1 , 2007 to October 31, 2010

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Collective Agreement between Clipper Navigation and CAW Local 114

(b) New Member Orientation

The Company shall notify and introduce to the Shop Steward, all new hired employees and provide the names and work locations of these employees in the bargaining unit at the earliest opportunity. The Company shall provide a minimum of fifteen (15) minutes of paid time to the Shop Steward for new member orientation. The Company shall provide a minimum of fifteen (15) minutes of paid time to the Health and Safety representative for new member orientation.

2.3 Union Activities

(a) It is recognized that from time to time it may be necessary for employees representing the Union to carry out their Union duties during their working hours. Employees must first obtain permission from the Terminal Manager prior to conducting any Union activity or business on Company premises at any time. Permission will not be unreasonably withheld. The Company shall maintain the earnings of one Shop Steward at a time in meetings with the Company unless otherwise specifically agreed. The investigation and/or processing of a grievance shall, when reasonably possible, be done on a coffee or lunch break. It is understood that operational requirements shall always be the first priority. Duly elected officers of the Union must obtain prior approval from the Terminal Manager prior to conducting any Union activity or business on Company premises at any time.

(b) The Union agrees that there will be no Union activities carried out during work hours, except those reasonably necessary in connection with the administration of this Agreement. Union activities are defined as activities relating to the investigation and resolution of grievances and complaints and collective agreement interpretation.

2.4 Union Bulletin Board

The Union shall be allowed a bulletin board to place notices of interest to employees covered by this Agreement. Such notices shall not be located in any place where the traveling public has access.

2.5 Recognition of Picket Lines

(a) The Company shall not require an employee covered by this Agreement to cross a legal picket line or to accept any product or goods from any person or employees of any person with whom a Union has a legal picket or placard line around or against, or to deliver any product of goods to any person, or employees or any person with whom a Union has a picket or placard line around or against.

November 1, 2007 to October 31, 2010 2

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Col/ective Agreement between Clipper Navigation and CAW Local 114

N.B. A "Hot Goods" declaration must be by the British Columbia Federation of Labour (BCFL), the Canadian Labour Congress (CLC) or by the CAW National Union.

(b) In the event of a third party strike, lock-out or similar labour dispute which affects employees covered by this Agreement in the performance of their duties, the Union agrees it will use its best efforts to attempt to immediately resolve the dispute in so much as it affects the Company's operation, and to facilitate a resumption of the work which was disrupted due to the dispute. The Company agrees the Union shall not be held liable for any losses incurred by the Company if a resolution is not found, or is not found in a timely manner.

2.6 Successorship

In the event of the sale, transfer, lease, merger or assignment in whole or in part of the Company, Part I of the Canada Labour Code will apply (Successor Rights and Obligations ).

2.7 Union Checkoff: Assignment of Wages

The Company agrees to deduct from the pay of each employee in the bargaining unit covered by this Agreement an amount of Union dues as specified by the Financial Secretary, Local 114 and forward the full amount so deducted to the Financial Secretary or such other person as may be officially designated. Said deductions to be made from the last pay period in each month. It is agreed that the amounts so deducted shall not at any time thereafter become part of the operating funds of the Company.

2.8 Union Checkoff: Remittances

The monthly dues remittances shall be accompanied by a list of employees on the payroll for the period in which the deductions were made. If there are any known or conscious deviations from the standard dues deductions, the local Shop Steward shall be provided with a full written explanation for any deviations by the Terminal Manager.

2.9 Union Shop Sign

The Company agrees to display one standard Union shop sign at its place of operations. The Union agrees to provide such a sign.

2.10 Performance of Bargaining Unit Work

Except as otherwise provided in the Collective Agreement, no person whose regular job is not in the bargaining unit shall work on any job for which rates are established by this Agreement, except for the purpose of instruction or management training, in which case trainees shall not displace or replace any employee, except in cases of emergency when regular employees are not available. For the purpose of this Agreement, repetitive and/or cyclical schedule of vacancies shall not be deemed to be emergencies.

November 1,2007 to October 31,2010 3

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Collective Agreement between Clipper Navigation and CAW Local 114

2.11 Paid Education Leave

The Company agrees to contribute $0.05 per hour for all hours worked to the CAW's Paid Education Leave Fund (P.E.L.). The first contribution shall be on the date of ratification, and the subsequent contributions shall be on the anniversary dates of ratification.

2.12 Social Justice Fund

The Company agrees to contribute a lump sum of $200 upon ratification and a further $200 upon each anniversary date of the Agreement to the CAW Social Justice Fund.

2.13 Local Administration Fund

The Company agrees to contribute a lump sum of $200 upon ratification and a further $200 upon each anniversary date of the Agreement to the CAW Local 114 Administration Fund.

ARTICLE 3 - GRIEVANCE PROCEDURE

3.1 Grievance Defined

Any complaint, disagreement or difference of opinion between the Company and the Union concerning the interpretation, application, operation or any alleged violation of this Agreement, or concerning discharge or discipline of an employee, which may be alleged to be unjust, shall be considered a grievance.

3.2 Informal Step

As an informal step, the employee shall make an earnest effort to resolve the grievance directly with the management person to whom he or she reports. At his or her option, the employee may be accompanied by a Shop Steward. When the grievance has a general application or will affect more than one employee, the informal step shall be by­passed, and the grievance shall be submitted in writing at Step One.

3.3 Step One

(a) A written grievance must be filed with the Company within ten (10) calendar days after the occurrence of the alleged grievance or of the date on which the Union should first have had knowledge of it, if it is a general application grievance. If it is an individual or group grievance, the written grievance shall specifically state what Articles of this Agreement are alleged to have been violated and the remedy being sought.

November 1, 2007 to October 31,2010 4

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(b) Within ten (10) calendar days after receipt of the written grievance, the Terminal Manager shall respond to the grievance in writing.

3.4 Step Two

(a) Failing a resolution at Step One, either party may submit the grievance to binding arbitration. The parties shall have five (5) working days to agree on an Arbitrator from the date of the Company's written decision at Step One. The parties shall select an Arbitrator by drawing from a list of six Arbitrators. Those Arbitrators are listed in Schedule A to this Agreement. It shall be a condition of the Arbitrator's selection that he or she agrees to furnish a decision within thirty (30) days of the date of the hearing.

(b) The parties shall share equally the cost of the Arbitrator. The finding and decision of the Arbitrator shall be binding and enforceable on all parties.

(c) The Arbitrator shall have the power to determine whether a particular issue is arbitral under this Agreement, but it is specifically agreed that the Arbitrator shall have no authority to alter, modify or amend this Agreement.

3.5 Expedited Arbitration Process

(a) Recognizing that there are times when an expedited arbitration may be desirable, the parties agree that the following process may be used as a substitute for the formal grievance procedure as outlined in Sections 3.3 and 3.4

(b) Use of this procedure shall be "Without Prejudice" to either party with regards to their future use of the normal grievance procedure as laid out in Sections 3.3 and 3.4.

(i) This procedure can only be used by mutual agreement between the Company and the CAW.

(ii) The outcome will be binding on the parties.

(iii) The Arbitrator's costs shall be shared on a 50/50 basis (Employer 50% -Union 50%).

(iv) The number of cases to be heard at any given time will not exceed three (3).

(v) The parties or their representatives will try to get an agreed statement of facts for presentation to the Arbitrator.

(vi) Wherever possible, the Arbitrator will attempt to mediate a settlement between the parties.

November 1, 2007 to October 31, 2010 5

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(vii) In such a case that the Arbitrator must write a decision, such decision shall be brief and to the point.

(viii) An agreed schedule of the process will be arranged in advance, based on a mutual assessment of the length of time needed to present each case.

(ix) General rules of evidence will be waived except for the rule of "onus."

(x) Procedure Guidelines:

(a) The Opening Statement: This should basically set out the case from each party's perspective. The Arbitrator will aggressively seek at this point to define the issue and to determine what evidence is agreed to and what is not.

(b) The Hearing: Sufficient witnesses should be called to ensure the "story" is properly told. Where it is an issue of credibility or conflicting evidence, the key individuals must testify.

(c) The Argument: As agreed, the parties will not cite legal precedents but may refer to Brown and Beatty, Palmer, etc. However, it is imperative that the relevant provisions of the Collective Agreement be canvassed by counsel to ensure that all relevant clauses are put before the Arbitrator.

(d) Mediation: Counsel must accept some responsibility at this stage to assist the Arbitrator in assessing the evidence before him/her. Specifically, if counsel can assist in assessing credibility and/or contradictory evidence, they should do so.

(e) The Decision: If mediation fails or is not appropriate and if the decision can be rendered after a short deliberation, the Arbitrator will do so. By meeting first with counsel to explain the framework of the decision, the parties are provided with an opportunity to influence the exact terms of resolution. Within the framework of settlement as outlined by the Arbitrator, the parties can work out exact terms, which best suit, the specifics of the case. Such an opportunity should not be wasted by continuing to argue the merits of the case.

(xi) With respect to grievances involving customer complaints, the following will apply:

(a) Whenever reasonably possible, the complaint will be reduced to writing, in the customer's own handwriting.

November 1, 2007 to October 31, 2010 6

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(b) Prior to the hearing, the parties shall discuss the evidence so that there are no surprises.

3.6 Time Limits

The time limits as provided herein may be extended by mutual agreement. Issues of timeliness shall be presented to the Arbitrator as a preliminary matter.

ARTICLE 4 - DISCIPLINE, SUSPENSION OR DISMISSAL

4.1 Discipline and Discharge

(a) No employee shall be dismissed nor otherwise disciplined except for just cause. There shall be equal treatment of all employees in the application of progressive discipline.

(b) The Union shall receive a copy of all disciplinary notices.

(c) When the Company schedules an "investigative hearing" into an incident or issues where suspension or dismissal is reasonably contemplated, the Union shall be advised of the incident or issue involved and that a suspension or dismissal is possible. The Company may suspend an employee(s) pending the outcome of the investigative hearing. The hearing must take place within seven (7) days of the alleged offence occurring. The Union shall be supplied with full particulars of the alleged offence forty-eight (48) hours prior to the hearing, including the employee's statement pertaining to the alleged offence. Notice shall be given to the Union staff representative, the Shop Steward and employee(s) not less than forty-eight (48) hours prior to the time and date of the hearing and the meeting shall take place as scheduled unless both parties mutually agree to reschedule it. The employee(s) may bring witness(es) and evidence to the hearing.

(d) If the Company decides after the investigative hearing to suspend or dismiss an employee(s), and the Union disagrees with that decision, the Union shall file a grievance in writing at step one of the grievance procedure within ten (10) calendar days of the Company's written decision.

(e) If, after the review, it is determined by the Company that no suspension or dismissal will be invoked, the employee shall be reinstated and made whole.

(f) When cash discrepancies and other work performance issues are raised, the following criteria must be addressed:

(i) Is there a system/structural problem that must be addressed?

November 1, 2007 to October 31, 2010 7

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(ii) Is retraining of the employee required?

(iii) If culpability on the part of the employee is proven on balance of probabilities, will the resultant discipline be corrective as opposed too punitive?

4.2 Complaints

Any complaint pertaining to the performance or attitude of a bargaining unit member will follow this procedure:

(a) A non-bargaining unit Company employee complainant must report the alleged complaint to the Terminal Manager within five (5) days and with full particulars.

(b) The Terminal Manager shall discuss the complaint with the bargaining unit member, with a Shop Steward present. This shall be done as quickly as possible and shall be done within three (3) days, provided the bargaining unit member is available. This discussion shall take place in the work place and during the member's regular scheduled hours, whenever possible.

(c) A complaint from a person outside the Company will be dealt with as per Article 4.1. These complaints will not be restricted to the time lines within Article 4.1 (c), however the Company recognizes a reasonable time frame must be followed.

(d) The Company will supply the bargaining unit member and Shop Steward with a written status report within five (5) days of the discussion as per Article 4.1. If the Company deems further action necessary, full disclosure will be provided in this summary.

(e) With respect to both non-bargaining unit (Company) complaints and outside (external) complaints, the Company shall have one week from issuing the status report to take further action otherwise the file shall be deemed closed.

ARTICLE 5 - GENERAL HOLIDAYS

5.1 General Holidays

The following days shall be general holidays:

New Years Day Good Friday Victoria Day Canada Day British Columbia Day

November 1,2007 to October 31,2010

Labour Day Thanksgiving Day Remembrance Day Christmas Day Boxing Day

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Collective Agreement between Clipper Navigation and CAW Local 114

5.2 Eligibility for General Holidays

(a) To be eligible for general holiday pay, an employee's date of hire must be more than thirty (30) days prior to any general holiday and the employee must have worked twelve (12) of the thirty days prior to any listed holiday. Vacation days and other general holidays shall be considered as days worked for the purpose of this section but at least one actual (1) shift in the previous forty-five (45) calendar days must have been worked to qualify for statutory holiday pay. However, an employee who has worked less than twelve (12) of the thirty (30) days prior to any listed holidays, shall be paid on the following basis: the employer shall pay to that employee the average of his/her daily earnings exclusive of overtime for the days he/she has worked in the four (4) week period immediately preceding the week in which the general holiday occurs.

(b) Except for employees whose original date of hire is within thirty (30) days of a general holiday, employees absent due to illness, injury or pregnancy related disabilities shall be considered eligible for general holiday pay provided one (1) day has been worked in the twelve (12) calendar days immediately preceding or following the statutory holiday.

5.3 Payment for General Holiday

Except for employees whose original date of hire is within thirty (30) days of a general holiday, employees qualified for general holiday pay in accordance with Section 5.2 who are not required to work on the above-mentioned general holidays, shall receive their regular hourly rate of pay for one (1) day of their regularly scheduled hours. The exception applies only to holidays that occur during the first thirty (30) days of employment and not to those holidays in subsequent years.

5.4 Working on a General Holiday

Except for employees whose original date of hire is within thirty (30) days of a general holiday, employees qualified for general holiday pay in accordance with Section 5.2 who are required to work on any of the above-mentioned general holidays shall receive one and one-half (1 1/2) times their regular rate of pay for all time worked plus one (1) day of pay for their regularly scheduled hours at their regular hourly rate of pay.

5.5 General Holiday on a Regular Day Off

Except for employees whose original date of hire is within thirty (30) days of a general holiday, employees whose regular day off falls on a general holiday, shall be granted another day off with pay at a mutually agreed upon time, or by addition of a day to their annual vacation or by payment of one (1) day's pay for their regularly scheduled hours at their regular hourly rate of pay.

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5.6 Overtime Rates on a General Holiday

Employees required to work on any of the above-mentioned general holidays who are not qualified for general holiday pay shall be paid for the actual time worked at the rate of one and one-half (1 1/2) times their regular hourly rate of pay.

5.7 Definition of Work on a General Holiday

Work performed at any time from midnight to midnight on the holidays specified above shall be considered as work performed on a general holiday.

5.8 Loss of General Holiday Pay

Employees who do not work on their last scheduled shift prior to the holiday or their first scheduled shift after the holiday shall forfeit their general holiday pay. Employees that are hospitalized, have a valid family emergency, suffer a work related injury that is approved by the Workers Compensation Board or pre-arranged a shift trade are exempt.

ARTICLE 6 - VACATIONS

6.1 Vacation Eligibility: Two Weeks

A two (2) week vacation with pay will be granted to all employees after one (1) year's service. Vacation pay will be four (4) percent of an employee's gross pay for the preceding year.

6.2 Vacation Eligibility: Three Weeks

A three (3) week vacation with pay will be granted to all employees with four (4) or more years of service. Vacation pay will be six (6) percent of an employee's gross pay for the preceding year.

6.3 Vacation Eligibility: Four Weeks

A four (4) week vacation with pay will be granted to all employees with nine (9) or more years of service. Vacation pay will be eight (8) percent of an employee's gross pay for the preceding year.

6.4 Vacation Scheduling

The Company will post a vacation calendar during the first week of January. Employees may choose their vacation by seniority until February 15, and then vacation time will be granted on a first-come, first-serve basis. Between the period June 10 and September 15, one bargaining unit employee at a time from each Department may take a vacation not to exceed two (2) weeks. Any request for vacation time made with

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respect to vacation blocks in the period June 10 to September 15 shall be responded to expeditiously at the time of sign-up. Vacations bid after February 15 for the period of June 10 to September 15 will be granted at the discretion of the Company and will be subject to operational needs.

6.5 General Holiday During Vacation

Should any general holiday, for which an employee is qualified, occur during that employee's vacation period, an extra day of vacation with pay will be granted for either the working day preceding or the working day following the vacation period. The day will be at the option of the employee providing it does not disrupt the Company's operations.

6.6 Vacation Payout

An employee who voluntarily quits or is terminated shall be paid pro rata for vacation accrued, but not taken up to the last date of employment. An employee who is laid off shall, upon written request to the Company, be paid all accrued, but not taken, vacation.

ARTICLE 7 - HEALTH AND WELFARE

7.1 Health and Welfare Plan

The Company shall pay 100% of the cost of the M.S.P. and CHIPS Health and Welfare cost in each year of the Collective Agreement. The cost of year one shall be one dollar and eighty-six cents ($1.86) per hour for every hour worked plus any M.S.P. adjustments which may occur through government increases in year one. Year two and three costs shall be adjusted accordingly by written notice from the CHIPS Plan.

The Employer will inform the CHIPS' administrators office in writing when a member leaves the Company or is transferred to a non-union position. Such written confirmation will happen no later than one (1) week from the date of the member's change in employment status. The Chief Steward will be copied on the correspondence.

7.2 Employee Assistance Program

(a) The Company recognizes and embraces the concept of a confidential Employee Assistance Program.

(b) The Company will enter into an agreement to establish and maintain, at no cost to the employee, an Employee Assistance Program with a bona fide and licensed supplier. The Company reserves the right to change suppliers, as the need would indicate.

(c) Employees and their immediate family members, including common law spouses (same sex relationships), will have full access to all programs offered within the

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Employee Assistance Program. The Company will not normally cover referrals outside the established Employee Assistance Program.

ARTICLE 8 PROBATIONARY AND TRAINING AND TRIAL PERIODS

8.1 Probationary Periods

(a) A new employee shall be regarded as being on probation for his/her first ninety (90) calendar days of employment. An employee shall be placed on a seniority list as of his/her date of hire.

(b) No employee covered by this Agreement shall be required to serve more than one Probationary Period.

(c) During the Probationary Period, the Company may dismiss an employee as being unsuitable for employment. The Company agrees to conduct reviews with a probationary employee and the probationary employee may request the Shop Steward be present during a review or disciplinary hearing.

8.2 Training and Trial Period

(a) An employee who maintains seniority in one department and voluntarily applies in writing and is accepted in training for a second department shall enter a Training and Trial Period of 15 shifts in the second department.

(b) The Company agrees to conduct reviews during the Training and Trial Period with the employee and the employee may request the Shop Steward be present during a review.

ARTICLE 9 - SENIORITY

9.1 Frozen Seniority

All employees who request in writing to work in only one department shall have their previous seniority frozen in their second department.

9.2 Seniority Draw

When two or more employees begin training or commence work in the same department on the same day, the procedure for establishing their relative seniority in that department shall be as follows:

(a) The employee who commenced work at the earliest hour of the day shall be senior.

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(b) All other things being equal, a draw shall be held with the Union Representative present. Seniority shall then rank according to the first name drawn (most senior) to the last name drawn (least senior).

9.3 Departmental Seniority

Employees shall have their seniority confined to the respective department in which they are employed and, except in the case where an employee voluntarily agrees to work in two (2) departments, employees transferring from one department to another shall have their seniority rank from their date of transfer. Seniority in their previous department shall remain frozen.

9.4 Seniority Lists

(a) The Company shall update and post a departmental seniority list every six (6) months, June 1 and December 1, showing the date upon which each employee commenced service with the Company in that department.

(b) The Company shall post a current seniority list within five (5) days of the execution of this Agreement. The Union may argue the seniority date of an individual employee provided it notifies the Company in writing within ten (10) days of the seniority list being posted. If the seniority issue cannot be resolved, the Union may submit the matter to arbitration.

9.5 Shift Preference by Seniority

The Company shall post schedules on which employees may select their weekly shifts, up to forty (40) hours per week. Shifts will be chosen based on an employee's seniority within a department covered by this Agreement. Seniority shall determine start times, finish times and days off.

9.6 Scope of Seniority

(a) The seniority of an employee shall be the determining factor in layoffs, transfers to other positions/departments and recall from layoff, provided the employee with the most seniority has the qualifications and ability to perform the work in question. It is agreed that the Company has the right to establish the qualifications for each job classification covered by this Agreement. Employees and the Union may only assert that an employee at the time of layoff, transfer or recall is presently qualified and able to do all the duties of a job classification in another department with no training or experience needed. The qualifications for a position covered by this Agreement shall not be changed while an employee is laid off.

(b) Employees holding seniority in two departments may at the time of lay-off from one department exercise seniority to a department in which the employee holds

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seniority. Employees shall be permitted to bump a junior employee in the department in which they hold seniority provided they meet the qualifications as set out in (a) above.

9.7 Layoff and Recall

(a) Employees shall be laid off in reverse order of departmental seniority (most junior employee first).

(b) Employees shall be recalled in order of department seniority (most senior employee first). However, senior laid off employees shall have the right of first refusal for any new blocks of less than three (3) sequential forty (40) hour workweeks. Employees electing to accept a block of less than three (3) sequential forty (40) hour workweeks will remain eligible for recall to their positions pursuant to (e) below.

(c) Employees who have completed their probation shall receive a minimum of seven (7) days notice for layoff and for recall.

(d) When recalled to service, laid off employees do not have to accept any position other than the one from which they were laid off.

(e) Employees on layoff shall be recalled to their positions when it is available and such positions shall not be posted as vacancies.

(f) To be eligible for recall, employees must file their names, addresses and phone numbers in writing with the Company and keep the Company informed of any changes that may occur.

(g) A shift trade shall not be deemed to be a recall for purposes of this Agreement.

9.8 Loss of Seniority

An employee shall lose seniority if he or she:

(a) Voluntarily quits.

(b) Is discharged and not reinstated through the grievance or arbitration procedures.

(c) Is absent from work for three (3) consecutive working days or more, without a valid reason.

(d) Is promoted outside of the bargaining unit for more than 90 days.

(e) Is laid off for more than fifteen (15) months.

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(f) Fail to respond within five (5) days of receipt of Notice of Recall sent by registered mail and fail to complete the posted schedule bid as per Article 11.2 (b) (i).

(g) Employees maintaining seniority in two departments can resign their seniority in one of the departments by submitting a written request to the Company.

9.9 Service Credits for Re-Hires

Employees who are rehired within twelve (12) months shall have all previous service applied to wage rates and vacation entitlements.

ARTICLE 10 - POSTING OF POSITIONS

10.1 JobPostings

10.2

(a) When vacancies occur or when new positions are created, they shall be posted on the Company bulletin board for a period of fourteen (14) calendar days. A copy of the posting shall be provided to the Union. A copy of the posting shall be mailed to any employee absent from work due to illness or an approved leave of absence.

(b) The posting shall contain the following information:

(i) Title

(ii) Duties

(iii) Qualifications Required

(iv) Hours Of Work

(v) Duration

(vi) Wage Rate

Employee Applications

Employees may apply for vacancies in new positions, which are covered by this Agreement. The Company reserves the right to select the most qualified applicant for the position or the vacancy provided a current employee is not selected in accordance with the provisions of Article 9.7.

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10.3 Postings and Seniority

Employees who apply for a position and transfer to another department in accordance with the provisions of this Article and elect to maintain seniority in only one department, and suffer a reduction in hours or are laid off or displaced from the position to which they are transferred, may exercise their seniority back to their former department and as per Article 9.3.

10.4 Notice of Training

The Company will post a notice of available employee training opportunities in the respective departments. The notice will be posted for a minimum of fourteen (14) days and identify the closure date for applying. Employees must apply in writing to the Terminal Manager prior to close of business on the posted closure date. Training will be provided to applicants in seniority order.

ARTICLE 11 - HOURS OF WORK AND OVERTIME

11.1 Normal Workweek

The normal workweek shall be from 12:01 A.M. Monday to 12:00 midnight the following Sunday. A regular workweek is eight (8) hours per day five (5) days per week.

11.2 Shift Bidding

(a) It is understood that the provisions of this Article are intended only to provide a basis for calculating time worked and shall not constitute a guarantee of hours of work per day (except as specified in Article 11.5), or days of work per week, or for any period whatsoever, except as otherwise agreed and is not a guarantee of any working schedule.

(b) The Company shall identify each schedule by number and post shift hours and days off. The Company shall notify employees of the Schedule Bid. Schedule bidding procedures are as follows:

(i) Shift hours of work (start/finish times) and duration of schedule shall be posted and open for bidding no later than twenty-one (21) days prior to commencement of the new schedule. The Schedule Bid shall be completed twenty-four (24) hours prior to the posting of the new schedule, which shall be seven (7) days prior to the implementation date.

(ii) In seniority, by Department, employees shall choose their start/finish times and days of work.

(iii) Employees off due to illness and/or layoff shall be notified by the Company of the Schedule Bid by telephone and/or letter.

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(iv) If an employee anticipates being on vacation or otherwise unavailable to participate in the Schedule Bid, the employee may leave a proxy form with the Terminal Manager indicating all of the employee's schedule choices. If anyone fails to leave a proxy, the Terminal Manager shall assign a schedule as close as possible to the employee's previous schedule.

(v) An employee may decline one (1) available shift on a ten (10) hour weekly schedule and up to two (2) available shifts on an eight (8) hour weekly schedule for the duration of Schedule Bid provided there is a junior qualified employee available to work the declined shift. A junior employee cannot be forced to work a declined shift out of seniority order.

(c) When a schedule is changed by one hour or more or a rest day is changed, the employee holding said schedule shall have the option to exercise their seniority to another posted schedule.

(d) Employees displaced as a result of Article 11.2(c) shall place themselves in seniority order.

11.3 Assignment of Overtime

(a) The Company may require overtime as necessary. Overtime shall be offered in descending order to senior employees on duty. If not voluntarily accepted it shall be assigned to the junior employee(s) on duty in ascending order. Overtime may be assigned to more than one employee in seniority order, but the Company shall only be required to make one call to each employee to determine his or her availability. The Company agrees to wait 15 minutes for a call back for a shift that needs to be filled within twenty-four (24) hours. For shifts that need to be filled between twenty-four (24) and forty-eight (48) hours the Company agrees to wait one (1) hour. For shifts beyond forty-eight (48) hours the Company agrees to wait one (1) day.

(b) Overtime is defined as authorized work in excess of an employee's scheduled hours of work. Employees scheduled for less than forty (40) hours per week will be offered all available hours, up to forty (40) hours in any workweek, at straight time, prior to the hours being offered as overtime. Any unscheduled hours worked on day of shift shall be considered as overtime.

(c) The order of selection for excess hours shall be:

(i) Employees scheduled for less than forty (40) hours per week in that classification.

(ii) Regular laid-off employees in that classification.

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(iii) If excess hours are continuous with a regular shift, they shall be offered to the senior on-duty employee in that classification.

(iv) If it is a call-out from home that is required, the hours shall be offered to a rest day or off-shift employee in seniority order in that classification.

(v) The Company agrees to offer overtime to accommodate scheduling for additional work where there is not four (4) hours of scheduled work available.

(d) Under no circumstances shall an employee on approved leave of absence, vacation or banked time be considered for overtime.

(e) Employees shall not be required to lay-off during their regularly scheduled hours to offset any overtime.

11.4 Shift Trades

Shift trades with a minimum of forty-eight (48) hours notice with management's approval are permitted, but no benefit per Article 15.2(b) or any other article in the collective agreement will result for the employee working the shift.

11.5 Reporting Pay

Employees shall be paid for a minimum of four (4) hours when they report for work as scheduled or when they are called in.

11.6 Scheduling by Seniority

(a) The Company shall schedule employees by seniority in forty (40) hour increments to the extent reasonably possible. The Company may schedule daily shifts from four (4) hours to ten (10) hours per day within a forty (40) hour workweek.

(b) By agreement between the Company and the Union, schedules may be comprised of four consecutive ten (10) hour days.

11.7 Consecutive Days Off

All employees shall have two (2) consecutive days off except as otherwise agreed to by the Union and the Company.

11.8 Meals Breaks

(a) A thirty (30) minute meal period will be provided for shifts that are six (6) hours to seven and one-half (7%) hours.

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(b) Meal periods shall start between the end of the third (3rd) hour and the end of the fifth (5th) hour for eight (8) hour shifts.

(c) Meal periods shall start between the end of the fourth (4th) hour and the end of the seventh (7th) hour for ten (10) hour shifts.

(d) All meal periods will be 1 hour in duration, with the exception of (a) above.

(e) Employees may agree to give up their meal periods on a voluntary basis. However, shifts may not be extended to accommodate employees working through their meal periods. If employees voluntarily give up their meal period, they shall be given a twenty (20) minute paid meal period at a mutually convenient time.

(f) Employees shall be entitled to take a meal period away from their work area.

11.9 Rest Periods

(a) All employees shall have two (2) fifteen (15) minute rest periods for each shift in excess of six (6) hours, one (1) rest period to be granted before and one (1) after the meal period.

(b) All employees working shifts less than six (6) hours shall be granted one (1) fifteen minute rest period.

(c) Rest periods shall not begin until one (1) hour after the commencement of work or not later than one (1) hour before either the meal period or the end of the shift. If a break is interrupted, it shall be taken over again completely.

(d) Rest periods shall be taken without loss of pay to employees.

11.10 Blanking of Positions

Management shall have the right to blank a position if it is vacant, but subject to the following conditions:

(a) If there is no "on-site" Manager, the Company will appoint the senior agent as the Lead Hand for that day and will pay the Lead Hand premium to the agent.

(b) If the temporary vacancy is known in advance, the Company shall make a decision as to whether or not to blank the position.

(c) If the Company makes the decision to blank the position, a black dot will be placed on the schedule beside the position to be blanked, which will act as advice to the other employees.

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(d) Nothing in the foregoing precludes the Company from arranging for relief coverage prior to or on the day of the vacancy, if in the opinion of management, such coverage is warranted.

(e) The Chief Shop Steward will be provided with a letter by Management outlining why a decision was made to blank a particular shift or shifts.

11.11 Overtime Banking

(a) The Company shall establish a Time Bank for the purpose of accumulating hours earned for overtime worked and general holidays.

(b) All overtime or general holiday credits in their entirety, shall be deposited to the Time Bank, or be paid to the employee in each pay period at the employee's discretion.

(c) An employee's accumulated overtime and general holiday credit in any single pay period, must either be paid out entirely or fully banked. The employee shall advise the Company of his/her option at time earned.

(d) All credit hours deposited to the Time Bank will be reflected as a balance of hours, which at the employee's option, may either be redeemed as hours to take off or to be paid out in cash.

(e) Time off shall be granted subject to operational requirements and it is agreed that the Company will make all reasonable efforts to accommodate these requests.

(f) Each deposit to an employee's Time Bank shall be automatically rolled over indefinitely, unless taken at an earlier time in the form of time off, or by payment by direction of the employee.

11.12 Work Outside of Victoria

(a) When employees are required to work outside of Victoria, e.g. accompanying a bus to Seattle, all hours worked from the Victoria Terminal to check-in at the Seattle hotel shall be paid at the applicable rate of pay. Such a special assignment shall be on a voluntary basis.

(b) On the return trip to Victoria, all hours worked from the arrival at the Seattle Terminal to the Victoria Terminal shall be paid at the applicable rate of pay. This shall not be more than one (1) hour prior to the departure time.

(c) In any case, the daily minimum hours per Article 11.4 shall be paid.

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(d) Any Victoria employee scheduled to work upon retum to Victoria shall have the option of working his/her shift or taking the shift off if such employee advises the Terminal Manager prior to the Seattle departure.

(e) Any employee spending a night away from their home terminal on Company business shall have a meal allowance paid for each meal required: one (1) meal to be provided for the employee at the option of the employee, en route or after the arrival at the destination, one (1) meal to be provided, at the employee's option, prior to departure or en route, and in addition, one (1) meal in the event that the finishing time on the second day of work is later than 12:00 hours.

(f) Meal allowances will be comparable to meal allowances paid to Seattle based employees converted to Canadian dollars or the following, whichever is greater:

Breakfast: Lunch Dinner:

$10.00 CON $11.00 CON $18.00 CON

(g) Employees working outside of Victoria who use their own vehicle will be paid a mileage rate of forty-five cents ($0.45) per kilometer traveled.

11.13 Records of Shift Changes

The Company shall advise the Chief Shop Steward in writing each time it is unable to fill a shift and the reason why the shift could not be filled through regular or overtime hours.

ARTICLE 12 - LEAVES OF ABSENCE

12.1 General Leaves of Absence

(a) A minimum of two (2) Leaves of Absence of up to six (6) weeks each shall be granted upon request by seniority between September 1 to May 15 each year provided application is made in writing by May 30.

(b) Additional leaves may be granted at the discretion of the Company and shall not be unreasonably denied. Applications must be made in writing.

(c) All applications will be replied to in writing within ten (10) calendar days and a copy of such will be remitted to the Union. Leaves of absence shall not be granted to enable employees to work outside of the Company's service, except by agreement of the Company and the Union.

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12.2 Extension of Leaves

Leaves of absence may be extended upon application in writing from the employees, provided such application is made in ample time to permit extension before the expiration of the leave of absence. Proof of illness, preventing an employee from retuming to work from a leave of absence shall excuse an employee's failure to return at that time. Proof of illness means a medical certificate from an authorized physician. A second opinion may be required.

12.3 Seniority While on Leave

After one (1) year of continuous service, employees on an approved leave of absence shall retain and accrue seniority for up to a maximum of twenty-four (24) months cumulative (no cap if medical leave).

12.4 Placement Upon Return from Leave

Upon retum from an approved leave of absence, employees shall be retumed as soon as reasonably possible to the position held when the leave was approved. However, when the Company would have to hire to replace an employee requesting a leave of absence, the Company may grant the leave of absence on the understanding that the employee requesting the leave will return to available hours only. The employee will not bump the employee hired to replace them. The employee may however, exercise their seniority for the first available hours.

12.5 Time off for Bargaining Committee

The Company will release employees to participate in negotiations or conciliations of this Agreement.

12.6 Union Leave

(a) Any employee elected or appointed to a fUll-time position with the CAWIT.C.A. Canada shall be granted indefinite leave of absence, providing thirty (30) days notice is given the Company prior to the beginning of such leave. During such leave, seniority shall accumulate, health and welfare benefits shall be suspended after thirty (30) days of such leave and annual vacation benefits shall be suspended immediately. They will both again be in effect the first day of returning to work. This section shall not apply to more than one (1) employee of the Company at a time.

(b) Upon written notification of the Union Representative and/or Shop Steward, employees delegated and attending general business of the Union shall be granted leave of absence without pay for that purpose. As much advance notice as possible will be given by the accredited representative and/or Local Chairperson prior to the effective date of the requested leave of absence. The Company will make a reasonable effort to make time available.

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12.7 Sick Leave

(a) After one (1) year of employment, employees shall be credited with four (4) sick leave days with an additional four (4) days credited on each subsequent anniversary date of their employment.

(b) Employees absent on account of illness or injury shall retain and continue to accrue seniority. The Company will make health and welfare contributions for employees injured on the job. For all other illnesses and injuries, the Company will make health and welfare contributions for up to ninety (90) days.

(c) Accrued sick leave days shall not be paid upon termination of employment.

(d) Employees may use sick days for dental/medical appointments for themselves and dependent family members or as family care days. Sick days may be used in one half (1/2) shift blocks (.5 of a shift).

(e) If an employee has more than four (4) sick leave days banked, such employee will have the option to cash in up to four (4) sick leave days at the end of the calendar year.

12.8 Family Responsibility Leave

An employee is entitled to up to five (5) days of unpaid leave during each employment year to meet responsibilities related to

(a) The care, health or education of a child in the employee's care.

(b) The care or health of any other member of the employee's immediate family or spouse including a same-sex spouse.

12.9 Compassionate Care Leave

The Company shall provide, upon written request, a leave of absence of up to eight (8) weeks in accordance with the E.!. provisions to care for a gravely ill family member. The Company may grant a leave of absence, upon written request, to allow an employee to care for a seriously ill family member. Requests for such leaves shall not be unreasonably denied.

12.10 Bereavement Leave

(a) Employees shall be entitled to bereavement leave of up to three (3) days with pay in the event of a death of a spouse, common-law spouse (same sex relationships), child, foster child, parent, foster parent, grandparent, brother, sister, mother-in-law, father-in-law, brother-in-law or sister-in-law.

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(b) An employee will be paid one additional day of bereavement leave for out-of­town funerals, or for officiating in the funeral service, or for being involved in making the arrangements. (Out-of-town is defined as the Mainland and north of Nanaimo).

(c) Additional leave without pay shall be granted on request if consistent with the Company's operational requirements.

12.11 Court Leave

Employees shall suffer no loss in wages while serving as subpoenaed witness or for jury duty during regular working hours. If released as a juror or a witness, employees are expected to promptly contact the Terminal Manager. If less than four (4) hours remain in their shift, employees will not be expected to return to work, but will still be required to contact the Terminal Manager.

12.12 Maternity Leave and Child Care Leave

(a) Leaves shall be granted in accordance with the requirements of the Canada Labour Code. However, such leaves shall be extended for a maximum of six (6) months upon written request made at least one (1) month prior to their scheduled retu rn to work.

(b) The Company shall continue contributing premiums for the employee to the Health and Welfare Plan and the group RRSP for the duration of the maternity and parental leave.

12.13 Medical Examinations

(a) The Company may require an employee to provide a medical certificate on return to work following an illness or injury in excess of three (3) days to support a claim for sick payor leave. However, if the Company requires a second opinion, the attending physician will be responsible for making the referral. The medical examination and any notes, letters or certificates required by the Company shall be at the Company's expense and shall also cover all lost wages and benefits incurred by the employee due to taking time off for the examination.

(b) The confidentiality of health and medical information is recognized by the Company and the Union, to the extent that the parties agree that medical information of an employee will not be divulged to a third party without the employee's written consent or as otherwise required by law.

(c) The Company's right to request medical examination does not include drug or alcohol testing or lie detector tests.

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ARTICLE 13 - HEALTH AND SAFETY

13.1 Safety Committee

The Company and the Union agree to implement a Safety Committee. The Committee shall be composed equally of Company and Union representatives. The Safety Committee shall meet in accordance with the safety provisions of the Canada Labour Code and Regulations. The Company, the Union and the employees recognize their respective obligations under the safety requirements of the Canada Labour Code.

13.2 Equipment Standards

All equipment furnished by the Company shall be in accordance with Canada Labour Code safety requirements.

13.3 Disclosure of Reports

The Union will be given a copy of any accident report or letters received commenting on an employee's abilities that may result in disciplinary action.

13.4 First Aid Certificates

The Company will reimburse employees for fifty per cent (50%) up to a maximum of two hundred dollars ($200.00) of the cost of obtaining an industrial first aid certificate, provided the employee notifies the Company before enrolling in the class and provided the employee presents proof of having actually received an industrial first aid certificate. If the Company requires an employee to obtain an industrial first aid certificate, it shall pay one hundred per cent (100%) of the cost.

13.5 Accident or Injury During Work

(a) When employees meet with accidents or injury during working hours that prevents their continued work, they shall be paid their full day's wages for the day of the accident or injury. All accidents or injuries must be reported in writing as soon as possible.

(b) An on-duty employee may attend a WCB-related medical appointment with no loss of pay if:

(i) There is prior consultation with and the agreement of the Terminal Manager or designate.

(ii) Such medical appointments shall not conflict with the operational requirements of the Company.

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13.6 Lunch and Washroom Facilities

The Company shall provide a suitably heated lunchroom and separate washroom for employees only. In any future development, the Company shall ensure the continuation of a suitable facility.

13.7 Additional Rights and Obligations

Additional rights and obligations are to be found in Appendix "A", entitled: Health, Safety and Environment.

ARTICLE 14 - REHABILITATION

14.1 Accommodations

If employees become medically unable to permanently perform the duties of their regular classification due to work related illness or injury, they may exercise their full Company seniority to another position and/or department, if qualified in accordance with the provisions of Article 9.7. (See also Appendix "A" where applicable).

14.2 Requests in Writing

Employees exercising their rights under this Article must submit their request for transfer in writing (stipulating the position to which they wish to transfer) within two (2) weeks of official notification by a physician that they are medically unable to permanently perform the duties of their regular classification.

ARTICLE 15 - TRAINING

15.1 Payment for Training

Employees shall be paid one and one-half (1 1/2) times their regular hourly rate for time required to attend mandatory training, if such time extends their workday beyond eight (8) hours. Overtime shall also be paid for attending mandatory training on a regularly scheduled day off. Travel time shall be unpaid unless it occurs during a regularly scheduled shift. Employees shall only be paid for their regularly scheduled shifts and shall not be paid overtime. Training hours shall be scheduled over and above the regular schedule and will be clearly marked "TR".

15.2 Cross Training

The Company shall allow and encourage employees to learn the duties of positions other than their own within the Company, provided that such arrangement does not interfere with the performance of any employee's duties.

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15.3 Voluntary Training

When training opportunities are provided by the Company on a voluntary basis, employees who volunteer for such training will not be compensated.

15.4 Joint Training Committee

(a) The Company agrees to establish a joint training committee to make recommendations to update the current training program for Dock Hands and Reservation Agents. The Company will assign qualified employees to train other staff as required. The Company will retain jurisdiction over course content.

(b) A Victoria trainer shall be selected by the Company and shall be paid a premium of two dollars ($2.00) per hour above his/her classification rate. The premium is payable only for those hours actually worked as a trainer.

15.5 Refresher Training

It is understood that refresher training may be required to ensure that employees on a shift share in the workload equitably and to ensure that there is a reasonable balance of skills, efficiency, and knowledge of safe work practices among all employees on a given shift. This training may be scheduled within normal hours and/or be scheduled over and above normal hours on paid time at applicable rates.

ARTICLE 16 - WAGES

16.1 Pay Dates and Statements

(a) Employees shall be paid every second Friday. The Company reserves the right to change payroll dates on reasonable notice to employees, and in the event of circumstances beyond the Company's control.

(b) The Company shall provide a comprehensive statement accompanying each pay cheque detailing all payments, allowances and deductions, including a written explanation of any discrepancies or unusual occurrences. The statement shall include sick time money balance, vacation money balance and, if possible, Time Bank balance.

(c) The distribution of pay cheques shall be done in such a manner that the details of the pay cheque shall be confidential.

16.2 Pay Rates Defined

(a) Pay Rates

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See Schedule B attached

(b) Employees on the Company's payroll as of June 4,1992 shall be placed on the salary schedule based on the calendar months from their date of hire. Employees hired after that date shall advance on the salary schedule based on working months of service with the Company. A working month is any month an employee works a minimum of one shift or is otherwise in a paid status for a minimum of one shift. Shift trades are excluded from the above.

(c) Pay Errors

Should there be an error in an employee's pay in the amount of twenty-five dollars ($25.00) or more, such error shall be rectified and paid within two (2) week days upon receipt of such error. Should the error be less than twenty-five dollars (25.00), such error shall be rectified and paid to the employee on the next regular payday.

16.3 Premiums and Commissions

The Company reserves the right to institute commission and bonus programs at its discretion. Bonus and commission programs shall be the same for all employees. The Company shall provide the Victoria Reservation Agents with a copy of the monthly sales figures when the information becomes available.

16.4 Lead Hands

The Company reserves the right to assign a bargaining unit employee as Lead Hand on the job site on an as-needed basis at the Company's discretion. Lead Hands shall not displace hours of more senior employees. Lead Hands shall receive a premium of two dollars ($2.00) per hour above their regular rate of pay (See Appendix "E", Lead Hand­Duties and Responsibilities).

16.5 New Positions

It is agreed that wage rates for positions not specifically set out above shall be included by mutual consent of both parties to this Agreement. If unable to agree, either party may invoke Article 3.4 of the grievance procedure to facilitate a resolution. The Company may implement a new position and wage rate pending resolution of the dispute.

16.6 Group RRSP Plan

The Company shall implement a defined contribution pension plan (R.R.S.P.) which shall be the Royal Bank Plan supported by Local 114 as local Union policy. Participation in the Plan shall be optional by the employee and all contributions, to a maximum of four percent (4%) of wages, shall be matched by the Company. Voluntary

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employee contributions above the aforementioned levels may be made as permitted by the Plan rules. In addition, the Company shall contribute one-half (0.5%) of earnings in addition to the matched amount to the defined contribution pension plan.

ARTICLE 17 - MANAGEMENT RIGHTS

17.1 Except as otherwise expressly and specifically limited by the terms of this Agreement, the Company retains all its customary, usual and exclusive rights, decision-making prerogatives, functions and authority. The rights of employees in the bargaining unit and the Union are limited to those specifically set forth in this Agreement and as further provided by the Canada Labour Code.

ARTICLE 18 - ANTI-DISCRIMINATION AND HARASSMENT

18.1 Discrimination Prohibited

The Company and the Union agree that there shall be no discrimination, interference, restriction, or coercion exercised or practiced with respect to any employee by reason of age, marital status, sex, race, creed, colour, national origin, political or religious affiliations, disability, sexual orientation nor by reason of Union membership or activity.

18.2 Discrimination and Harassment Free Environment

The Company and the Union recognize the right of employees to work in an environment free of sexual harassment and personal harassment. Harassment shall include any behaviour, which is abusive or demeaning to an employee. Violation of this principle will be dealt with by way of disciplinary action up to and possibly including dismissal.

18.3 Harassment Defined

Any discriminatory behaviour at or related to the work place which denies an individual their dignity and respect or affects their job security by creating an intimidating, offensive or embarrassing environment is considered to be a personal harassment and will not be tolerated.

18.4 Harassment Complaints

Harassment complaints will be dealt with as per the procedure outlined in Appendix "B".

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ARTICLE 19 - GENERAL

19.1 Job Abolishment

Employees where job classification has been abolished, may on the date such notice is given, exercise their full Company seniority to another position/department if qualified in accordance with the provisions of Article 9.7.

19.2 Severance Pay

The Company shall pay two (2) week's pay for each year of service to all employees with two or more years of service that have their employment with the Company severed for any reason except dismissal for just cause or for voluntarily quitting.

19.3 Technological Change

The Company agrees to provide the Union with six (6) months notice of any technological change, which could result in loss of hours or a lay-off to bargaining unit members.

19.4 Contracting Out

(a) There shall be no contracting out of bargaining unit work.

(b) The Company shall not contract out work that bargaining unit members are available to do. Specifically, such work would be limited to baggage pick-up and delivery and pertaining to large groups. The Company will make all reasonable efforts to keep this work in-house, and offer this work to bargaining unit members in accordance with the provisions of the Collective Agreement.

(c) This shall be subject to review and open to re-negotiation in the event either party feels there is sufficient work to warrant a permanent shift( s).

(d) Terminal cleaning within the control of Clipper Navigation Ltd will remain bargaining unit work as per current practice.

19.5 Personal Files

(a) Employees may, at reasonable times in the presence of the Terminal Manager, review documents that are maintained in their personal files. Employees shall not be disciplined based on documents of which they have not been given copies. Employees may place in their personal file written rebuttals to documents they consider derogatory. Anytime an employee signs a document of discipline they do so only to show acknowledgement of receipt and understanding of the document.

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(b) Any reprimand notices of disciplinary measures will be withdrawn from the employee's file after fifteen (15) months except if there is a recurrence of a same or similar infraction within that fifteen (15) months. Discipline resulting from sexual harassment complaints shall not be withdrawn from the respondent's personal file.

19.6 Negotiation Costs

The Company and the Union agree to split fifty/fifty (50/50) all costs related to negotiation such as room rental and incidentals as well as production of the collective agreement. The Company also agrees to pay one (1) Bargaining Committee member lost time for all time spent in scheduled bargaining meetings.

19.7 Uniforms

The Company shall provide uniforms where required at no cost to the employee. If uniforms require dry cleaning, the Company shall payor reimburse the employee for the actual cost of the dry cleaning. Each employee will initially be issued three (3) shirts, four (4) pants (two [2] of which may be shorts at the election of the employee), one (1) light weight jacket and one (1) heavy weight jacket. Employees are responsible for advising and updating the Company on their clothing sizes. Employees will submit to the Terminal Manager, uniform requests for Company-provided replacement uniform items on an as needed basis. Employees will exchange their old/worn uniform items when issued replacement items. Employees will be kept abreast of delays and back orders.

19.8 Employee Negligence

Employees shall not be held responsible for cash shortages or lost, broken or damaged equipment unless the employee is negligent.

19.9 Cooperation and Incidental Work

(a) The Company and the Union jointly undertake that, notwithstanding Article 2.10, a cooperative attitude on the part of all staff shall exist, whereby customer service shall be the Number 1 priority. During high volume periods, if it is necessary for short periods of time for management to assist in performing duties and functions normally accomplished by bargaining unit members to meet customer service requirements, this will not result in grievances from the bargaining unit nor will it negatively impact bargaining unit hours.

(b) Any time worked by members of the Management team greater than fifteen (15) minutes per instance or greater than thirty (30) minutes per day in total will be recorded on a form which will include the date, time, issue and why the member of Management felt that it was necessary to assist. The Chief Shop Steward will discuss these reports at Union-Management meetings to review any concerns

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which have arisen. This will not apply where the performance of bargaining unit work by Management is as a result of short staffing on a particular shift as a result of unavailability of bargaining unit members for regular or overtime work.

19.10 On-board Employee Assistance

The purpose of this article is to set forth the parties intentions with respect to Article 2.10, as it relates to the work historically performed by on-board employees.

(a) On-board employees may assist in the unloading of baggage bins after those bins have been off-loaded from the vessel and moved to the Canada Border Services Agency (CBSA) inspection area by bargaining unit members.

(b) On-board employees may assist in directing arriving passengers and assisting them with their luggage in the Canada Border Services Agency (CBSA) inspection area up to the point where the passengers tum in the declaration form to a Canada Border Services Agency Agent.

(c) One on-board employee may check off manifests and collect boarding passes. On-board employees may also assist passengers with carry-on baggage after the passenger has cleared United States Customs and Border Protection (USCBP).

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ARTICLE 20 - DURATION

20.1 Term of Agreement

20.2

This Agreement shall be for the period from and including November 1, 2007 through October 31,2010 and from year-to-year thereafter, subject to the right of either party to the Agreement, not less than sixty (60) days nor more than four (4) months immediately preceding the date of expiry of this Agreement, or immediately preceding October 31, in any year thereafter, by written notice, to require the other party to the Agreement to commence collective bargaining. Should either party give written notice, this Agreement shall continue in full force and effect and neither party shall make any change in the terms of the Agreement (or increase or decrease the rate of pay of any employee for whom collective bargaining is being conducted or alter any other term or condition of employment) until:

(a) The Union shall give notice to strike (or until the Union goes on strike), or

(b) The Company shall give notice of lock out (or the Company shall lock out its employees) or

(c) The Parties conclude a renewal or revision of this Agreement or enter into a new Collective Agreement, whichever occurs first.

Nothing in this Agreement shall be retroactive unless specifically agreed to.

1!t,~J Signed at Victoria, British Columbia this -L'-- day of!f&!aiy, 2009.

FOR~HE COMPANY

D~~ __ --President and CEO

. Joan Rasmussen Vice-President, Reservations

Tom Oram Victoria Terminal Manager

November 1, 2007 to October 31, 2010

FOR THE UNION

&dl-ia ,}ff? Barbie Zipp Bargaining Committee

I} 6t:J1'-'/ / ~7'd"7

Gord Piper Local Representative

~~ ; //'-

Gavin McGarrigle National Representative

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Bruce Greyell

Judy Korbin

Joan McEwen

David McPhillips

Wayne Moore

Collective Agreement between Clipper Navigation and CAW Local 114

SCHEDULE "Au - ARBITRATORS

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Classification

Reservation Agent

Dock Hand

Classification

Reservation Agent

Dock Hand

Classification

Reservation Agent

Dock Hand

SCHEDULE "8" - VICTORIA WAGES

November 1, 2007 to October 31,2008

3 6 12 18 24 36 Start months months months months months months

$15.11 $15.69 $16.40 $17.53 $18.10 $19.63 $20.42

$13.81 $14.32 $15.00 $15.74 $16.84 $18.84 $19.63

November 1, 2008 to October 31, 2009

3 6 12 18 24 36 Start months months months months months months

$15.56 $16.16 $16.89 $18.06 $18.64 $20.22 $21.03

$14.22 $14.75 $15.45 $16.21 $17.35 $19.41 $20.22

November 1, 2009 to October 31,2010

3 6 12 18 24 36 Start months months months months months months

$16.07 $16.69 $17.44 $18.65 $19.25 $20.88 $21.71

$14.68 $15.23 $15.95 $16.74 $17.91 $20.04 $20.88

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APPENDIX "An HEALTH, SAFETY AND ENVIRONMENT

1. Company Duties

The Company shall institute and maintain all precautions to guarantee every worker a safe and healthy workplace. The Company shall comply with all applicable health and safety legislation and regulation.

2. Joint Health and Safety Committee

(a) A joint Health and Safety Committee shall be established which is composed of a minimum of one Union member chosen by the Union. At no time shall the number of Company members be allowed to outnumber the amount of Union members.

(b) Two co-chairpersons shall be elected by and from the members of the committee. One co-chair shall be a Union member, the other shall be a Company member.

(c) The committee shall assist in creating a safe and a healthy place to work, shall recommend actions which will improve the effectiveness of the health and safety program, and shall promote compliance with the appropriate government regulations. The Company shall make all reasonable efforts to comply with the recommendations of the committee or shall give detailed reasons in writing to the committee within twenty-one (21) days explaining why compliance is not possible.

(d) Without limiting the generality of the foregoing the committee shall:

i) Determine that inspections have been carried out at least once a month by the co-chairs or designates. These inspections shall be made of all places of employment, including buildings, structure, grounds, excavations, tools, equipment, machinery and work methods and practices. Such inspections shall be made at intervals that will prevent the development of unsafe working conditions.

ii) Recommend measures required to attain compliance with appropriate government regulations and the correction of hazardous conditions.

iii) Consider recommendations from the workforce with respect to health and safety matters and recommend implementation where warranted. Committee members shall only carry out committee business with the concurrence of the whole committee.

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iv) Hold meetings at least once a month for the review of:

a. Reports of current accidents and occupational diseases, their causes and means of prevention.

b. Remedial action taken or required by the reports of investigations or inspections.

c. Any other matters pertaining to health and safety.

v) Record the minutes of the meetings which shall be signed by the co­chairs, distributed to the committee members, placed on the bulletin boards and sent to the local Union and national Union representative.

vi) Have access to and promptly receive copies of, all reports, records and documents in the Company's possession or obtainable by the Company pertaining to health or safety, and which fall within the jurisdiction of this Health and Safety Committee.

vii) Time spent by members of the committee in the course of their duties shall be considered as time worked and shall be paid in accordance with the terms of this agreement.

viii) The Union Health and Safety Committee shall meet without Company representatives prior to the committee meeting if required, and after conSUltation with the Company Co-Chairperson.

3. Right to Refuse

(a) The Company shall ensure that all employees are informed that they have the right to refuse hazardous work which may harm them or any person and that signs are posted in the workplace advising them of this right.

(b) When an employee exercises his/her right to refuse, he/she shall notify the on­duty manager who shall promptly notify the Union co-chairperson or designate, who shall participate in all stages of the investigation. The employee shall stand by at a safe place and participate fully in the investigation of the hazard.

(c) The Company shall ensure that no other employee is asked or permitted to perform the work of the employee who refused, unless the second employee is advised of the reasons of the work refusal in the presence of the Union co­chairperson or her/his designate and the refusing employee.

(d) If the Union co-chairperson and the on-duty manager cannot agree on a remedy to the work refusal, the government inspector shall be called in.

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(e) No employee shall be discharged, penalized, coerced, intimidated or disciplined for refusing hazardous work.

4. Accident and Incident Inspection

Every injury or near miss, which involved or would have involved an employee going to a doctor or hospital, must be investigated. The co-chairpersons or their designates shall investigate the accident or incident.

5. Education and Training

(a) No employee shall be required or allowed to work on any job or operate any piece of equipment until he/she has received proper education, training and instruction. Such training shall include ergonomics training and chemical hazard training.

(b) The Union members of the committee shall be allowed one (1) week unpaid leave per year to attend courses or conferences given by the Union.

6. Disclosure of Information

The Company shall provide the Union and the committee with written information, which identifies all the biological agents, compounds, substances, by-products and physical hazards associated with the work environment. This information shall include, but not be limited to, the chemical breakdown of trade name descriptions, relevant information on potential hazards, results of testing to determine levels of contamination, maximum allowable levels, precautions to be taken, symptoms, medical treatment and antidotes.

7. Right to Accompany Inspector

The Union co-chairperson or designate shall be allowed to accompany government inspectors on an inspection tour and to speak with the inspector out of earshot of any other person.

8. Access to the Workplace

Union staff or Union consultants after full consultation with the Company shall be provided access to the workplace to attend meetings of the committee or Union committee or for inspection, investigating or monitoring the workplace.

9. National Day of Mourning

Each year on April 28 at 11 :00 A.M., work will stop and one (1) minute of silence will be observed in memory of workers killed or injured on the job.

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10. Protective Clothing and Equipment

The Company shall provide all employees, whose work requires them to wear protective devices, with the necessary tools, equipment and protective clothing required including safety footwear (replace at least once a year) and safety glasses (prescription, if necessary). These shall be maintained and replaced, where necessary, at the Company's expense. It is recognized that such protective equipment and clothing are temporary measures. The conditions necessitating their use shall be subjected to further corrective measures through engineering changes or the elimination or the hazard.

11. Employment of Disabled Workers

The Company agrees to offer every disabled employee a suitable job, if available, upon the employee's return to work, which shall continue as long as the disability lasts and within the requirements of the Canadian Human Rights Act.

12. First Aid Attendants

(a) There shall be a first aid attendant present during working hours that is a member of the bargaining unit.

(b) The Company shall pay for the fees, textbooks and lost time of all first aid attendants who successfully complete a first aid course.

13. Injured Worker Provisions

(a) An employee who is injured during working hours and who is required to leave for treatment or is sent home as a result of such injury shall receive payment for the rest of the shift at his/her regular rate of pay.

(b) Such employee shall be provided with transportation to his/her doctor's or hospital and to his/her home.

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APPENDIX "8" WORKPLACE HARASSMENT

1. The Company and the CAW are committed to providing a harassment free workplace. Harassment is defined as a "course of vexatious comment or conduct that is known or ought reasonably be known to be unwelcome," that denies individual dignity and respect on the basis of the grounds such as: gender, disability, race, colour, sexual orientation or other prohibited grounds. All employees are expected to treat others with courtesy and consideration and to discourage harassment.

2. The workplace is defined as any Company facility and includes areas such as offices, shop floors, restrooms, cafeterias, lockers, conference rooms, and parking lots.

3. Harassment may take many forms: verbal, physical or visual. It may involve a threat or an implied threat or be perceived as a condition of employment. The following examples could be considered as harassment but are not meant to cover all potential incidents:

(a) Unwelcome remarks, jokes, innuendoes, gestures, or taunting about a person's body, disability, attire, or gender, racial or ethnic backgrounds, colour, place of birth, sexual orientation, citizenship or ancestry.

(b) Practical jokes, pushing, shoving, etc., which cause awkwardness or embarrassment.

(c) Posting or circulation of offensive photos or visual materials.

(d) Refusal to work or converse with an employee because of their racial background or gender.

(e) Unwanted physical conduct such as touching, patting, pinching etc.

(f) Unwelcome invitations or requests.

(g) Condescension or paternalism, which undermines self-respect.

(h) Backlash or retaliation for the lodging of a complaint or participation in an investigation

4. Harassment Is Not

Harassment is in no way to be construed as properly discharged supervisory responsibilities including the delegation of work assignments, the assessment of discipline, or any conduct that does not undermine the dignity of the individual. Neither is this policy meant to inhibit free speech or interfere with normal social relations.

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5. Filing A Complaint

(a) If an employee believes that he/she has been harassed and/or discriminated against on the basis of any prohibited ground of discrimination, there are specific actions that may be taken to put a stop to it. First, request a stop of the unwanted behaviour. Inform the individual that is doing the harassing or the discriminating against you, that the behaviour is unwanted and unwelcome. It is advisable to document the events, complete with times, dates, location, witnesses and details.

(b) However, it is also understood that some victims of discrimination or harassment are reluctant to confront their harasser or they may fear reprisals from the harasser, lack of support from their work group, or disbelief by their supervisor or others. The incident should be brought to the attention of your Terminal Manager and/or Chief Shop Steward.

6. Investigation

(a) Upon receipt of the complaint, the Terminal Manager/Chief Shop Steward contacted, will immediately inform their Union or Company counterpart and together they will then interview the employee and advise the employee if the complaint can be resolved immediately, or if the complaint should be reduced to writing on the Human Rights Complaint Form or processed through another procedure. Properly completed copies of this form will be forwarded to the Terminal Manager, or designate, and the Chief Shop Steward, or designate.

(b) The Chief Shop Steward and the Terminal Manager will then determine if the complaint requires a special investigative team comprised of both a Management and Union representative appointed by the Company and Union respectively. In the event of a complaint involving sexual harassment, the investigative team, if possible, will be comprised of at least one person of the same gender as the complainant.

(c) A formal investigation of the complaint will then begin. It may include interviewing the alleged harasser, witnesses and other persons named in the complaint. Any related documents may also be reviewed. The principle of confidentiality is of the utmost importance and must be adhered to at all times.

7. Resolution

(a) The joint investigators will then complete the report on the findings of the investigation and a copy of the completed Incident Report will be forwarded to the Terminal Manager, or designate, and the Chief Shop Steward, or designate, who will make a determination on an appropriate resolution. The Terminal Manager and the Chief Shop Steward will attempt to resolve the complaint within

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ten (10) days and ensure the resolution is fair and consistent with the intent of the Company and National CAW policy regarding discrimination and harassment in the workplace.

(b) At the conclusion of this step, the complaint, if unresolved, will be considered as a grievance for the purposes of the Grievance Procedure and will be inserted into the 1 st step of the Grievance Procedure for resolution. In the event that the parties at the 1 st step of the Grievance Procedure do not resolve the complaint, it may be appealed to arbitration in accordance with the provisions of the Collective Agreement. The parties agree that this procedure is an alternative complaint procedure and as such, complaints should not be pursued through both the Grievance Procedure and the Human Rights Complaint Procedure.

(c) The pursuit of frivolous allegations through the Human Rights Complaint Procedure has a detrimental effect on the spirit and intent for which this policy was rightfully developed and should be discouraged.

8. Right To Refuse

(a) A bargaining unit employee alleging harassment in the workplace is encouraged to use the above procedure to resolve a complaint. However, it is agreed in principle, that in serious cases, or when the safety of the employee is being threatened, it may be necessary for that employee to leave the job.

(b) Furthermore, the parties agree that details with respect to the procedure regarding the ability of employees to leave their jobs as outlined above, be developed by the CAW and the Company, and will be implemented as a part of this procedure.

(c) This procedure in no way precludes the complainant's right to seek action under the Canadian Human Rights Act. However, both the CAW and the Company urge employees to use the internal mechanisms as outlined above before seeking alternative recourse.

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APPENDIX "e" Reservation Agents - Duties and Responsibilities

1. Must be physically capable of lifting and handling of customer baggage and cargo.

2. Answer all incoming phones in a timely and efficient manner.

3. Maintain a courteous and efficient manner when dealing with the public.

4. Make reservations for customers as per their requests, including tours, car rentals, hotel packages, special excursions, and any other options the Company may have available.

5. Check in and ticket customers, including collecting payments, processing tickets, tagging and processing customers' baggage and reviewing all documents with customers.

6. Receive, document, take payment, manifest and release cargo and all other related duties associated with cargo.

7. Advise all customers travelling, to have proper identification with them as required by United States Customs and Border Protection and Canada Border Services Agency.

8. Maintain and balance their own cash float as issued by the Company. This float is to remain on Company property and is subject to audit by the Terminal Manager. Each agent is responsible for the proper handling and reporting of their floats and cash reports.

9. Each day, one reservation agent will be responsible for the "Super Agent" duties. These duties include, as well as regular duties, closing the sailing, weather reports, releasing block seats, preparing and delivering documents and various other tasks as required.

10. Telemarketing as instructed by the Company.

11. Crowd control.

12. Other related duties as required.

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Collective Agreement between Clipper Navigation and CAW Local 114

APPENDIX "0" Dock Hand - Duties and Responsibilities

1 . Must be physically capable of lifting and handling customer baggage and cargo.

2. Transfer of customer's checked baggage from the terminal to the vessels and from vessels to the designated customs areas.

3. Transfer of cargo as required.

4. Load and unload vessels with Company supplied equipment in a safe and efficient manner.

5. Throw, receive and secure lines on the dock for vessel arrivals and departures.

6. Inspect and clean terminal throughout the day to include moving or lifting furniture, as required.

7. Conduct general repairs and maintenance of the terminal, dock and other Company facilities.

8. Assist customers with baggage from customs areas as directed by Management, when time permits.

9. Clean and groom vessels as directed by Management.

10. Must have and retain a valid British Columbia driver license.

11. Other related duties as directed by Management.

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Collective Agreement between Clipper Navigation and CAW Local 114

APPENDIX "EO> Lead Hand - Duties and Responsibilities

1. The Company has the right of selection. Lead Hands(s) will be selected by qualifications. If two candidates are equally qualified, the senior employee shall be selected. The Company will set out the requirements, in the job posting, for these positions.

2. In addition to their regular duties, the Lead Hand will direct other employees on the job site and will take direction from the Manager on duty. The Lead Hand shall not discipline other employees. The Lead Hand will deal with, but not be strictly limited to, customer relations issues, irregular operations, and shall be the "in charge" person in the absence of the Terminal Manager. The Lead Hand will be responsible for lock up and any other related duties. He/she will also be assigned other administration duties, from time to time by the Terminal Manager, as required.

3. If a Lead Hand wishes to be relieved of these duties, he/she will be allowed to do so with a two (2) week notice.

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LETTER OF UNDERSTANDING #1

between

CLIPPER NAVIGATION LTD.

and

CAW-CANADA, LOCAL 114

1. The Company agrees to pay the negotiated rates of pay as per Schedule B.

2. The Company may establish a product commission bonus system that would allow all employees an opportunity to earn extra monetary remuneration.

3. The Company will consult with representatives of the Union before establishing the rules and regulations pertaining to achieving the bonus, but the Company will have the final say as to what the rules and regulations will be.

~ Signed at Victoria, British Columbia this ---,,_day of May, 2008.

F~HE COMPANY

-~ Darrell-Bryan President and CEO

Joan Rasmussen / /Vice- President, Reservations

Tom Oram Victoria Terminal Manager

November 1. 2007 to October 31,2010

FOR THE UNION

&v~ Barbie Zipp Bargaining Committee

Gord Piper Local Representative

~ //~~ Gavin McGarrigle ' National Representative

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