JAN 1 COLLECTIVE AGREEMENT BETWEEN · 2.010) 2.01(1

JAN 1 1 1000 -l COLLECTIVE BARGAINiN(' INFORMATION SERVICES' '

COLLECTIVE AGREEMENT

BETWEEN:

GESCO LIMITED PARTNERSHIP

-and-

THE NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND

GENERAL WORKERS UNION OF CANADA (CAW) LOCAL 462

Expiry Date: December 31, 2010 CERT. FILE 1 gc2, 9 -11'n-CERT. DATE I 0- oc 1-!91

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INDEX

ITEM PAGE

Preamble 1

Article I Recognition 1

Article II Definitions 2

Article III Management Rights 4

Article IV Union Security and Dues Check-off 6

Article V No Discrimination and Coercion 8

Article VI Representation 9

Article VII Grievance Procedure 10

Article VIII Arbitration Procedure 13

Article IX Discharge and Discipline 14

Article X No Strike, No Lock-out 15

Article XI General 16

Article XII Seniority 17

Article XIII Promotions and Transfers 20

Article XIV Hours of Work and Overtime 21

Article XV Plant Holidays 24

Article XVI Vacations 25

Article XVII Leaves of Absence 29

Article XVIII Bulletin Boards 30

Article XIX Wages (see also Schedule B) 30

Article XX Safety 31

Article XXI Welfare (see also Schedule C) 33

Article XXII Duration of Contract 33

Schedule "A" Rules 35

Schedule "B" Wages & Classifications 39

Schedule "C" Welfare Provisions 40

I. Sick Days 41

2. Short Term Sickness Plan 41 3. Group Insurance and Pension 43 4. Plant Closure 45

Letters of Understanding 1. Bennett 46

2. Profit Sharing 47

3. Social Justice Fund 48 4. Paid Education Leave 49

5. Temporary Employees 50

6. Summer Students 51 7. Smoking Cessation 53 8. Early Retirement Benefit 54

APPENDIX 1 Absenteeism Policy

- 1 -THIS AGREEMENT made this 12th day of December, 2007.

BETWEEN:

PREAMBLE

GESCO LIMITED PARTNERSHIP

(hereinafter referred to as the "Company")

-and-

THE NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION OF CANADA (CAW) LOCAL 462

(hereinafter referred to as the "Union")

WHEREAS the general purpose of this agreement is to establish a mutually

satisfactory relationship between the Company and its employees in the bargaining unit described

herein and to provide machinery for the prompt and equitable disposition of grievances, and to

establish and maintain satisfactory working conditions and wages for all employees who are subject

to the provisions of this agreement, NOW THEREFORE WITNESSETH THAT the parties hereto

agree as follows:

ARTICLE I- RECOGNITION

1.01 The Company recognizes the Union as the sole and exclusive bargaining agent for all of

its employees at its warehouse operation, within the Greater Toronto Area (G.T.A.), save

and except foremen, persons above the rank of foreman, office and sales staff, persons

employed on a regular basis for twenty-four hours a week or less and students employed

during school vacation period.

1.02 A probationary employee as defined in this agreement shall not be deemed to be an

employee for the purposes of this article, except for articles 16, 17, 19, and schedule "B".

1.03 The masculine pronoun, whenever used in this agreement, shall also include the feminine

and the singular shall also include the plural.

-2-

ARTICLE II- DEFINITIONS

2.0l(a) "Days" as used in this agreement shall mean calendar days and "working days" shall

mean days upon which the offices of the Employer are open for the transaction of

business.

2.0l(b)

2.01(c)

2.01(d)

2.0l(e)

2.01(f)

2.0l(g)

2.0l(h)

2.0l(i)

"Seniority" shall mean the length of continuous service by an employee in the

employ of the Employer.

"Service" shall not include time when an employee is absent from work on an

unpaid leave of absence.

The word "between" as used in this agreement when used in connection with a time

period shall not include the commencement or the end of such time period.

The word "probation" or "probationary" shall be deemed to refer to a period of

testing and observation.

"Rate of pay" shall mean the employee's standard hourly rate of pay together with

applicable premiums or differentials, if any.

The word "Committeeperson" shall mean an employee elected or otherwise

appointed by the Union to serve on any committee referred to in this agreement.

The word "employee" shall mean any person employed by the Employer in the

bargaining unit as defined in Article 1 herein.

"Grievance" shall mean any complaint or difference between one or more

employees or the Union, on the one hand and the Employer, on the other, respecting

terms or conditions of employment or the rights, privileges or duties of the

2.010)

2.01(1<:)

2.01(1)

2.0l(m)

2.0l(n)

- 3 -employee or employees, the Union or the Employer, arising under the terms of this

agreement.

"Seniority date" is the first day worked by an employee following the completion of

his probation period. People hired through an agency, for replacement or short-term

help, shall not be part of the union nor gain seniority rights except as outlined in the

Letter of Understanding entitled "Temporary Employees".

"Service date" is the date upon which an employee is deemed to have started to

work for the Company and is a day sixty (60) working days prior to an employee's

seniority date.

"Warehouse employee" includes employees engaged in carpet cutting/wrapping,

resilient cutting/wrapping, order filling, receiving, shipping, boom/fork truck

operating and such other duties as may be assigned to persons normally performing

those tasks from time to time.

"Greater Toronto Area" is defined as Metropolitan Toronto and the surrounding

regions of Halton, Peel, York and Durham.

"Students" shall mean those persons employed during the school vacation period to

relieve employees for vacation. Students shall not be covered by this Collective

Agreement and will be permitted to drive forklift trucks, boom trucks, reach trucks,

and order pickers.

-4-

ARTICLE lli- MANAGEMENT RIGHTS

3.01 The Union recognizes that the management of the plant and the direction of the working

forces are fixed exclusively in the Company and that the Company has all rights, functions,

powers, privileges and authority that it possessed prior to signing of this agreement with the

Union except only as may be specifically limited by the express provisions of this

agreement and, without restricting the generality of the foregoing, the Union acknowledges

that it is the exclusive function of the Company to:

(a) maintain order, discipline and efficiency;

(b) hire, assign, retire, direct, promote, demote, classifY, transfer,

lay-off, recall and to discharge, suspend or otherwise

discipline employees for just and sufficient cause subject to

the right of the employee to grieve to the extent and manner

provided for herein in the event that the provisions of this

agreement are violated in the exercise of these rights;

(c) determine the nature and kind of business to be conducted by

the Company, the products to be manufactured, the kinds and

locations of equipment and material to be used, the process

of manufacturing, the engineering and design of its products,

the control of materials and parts, the methods and

techniques of work, the schedules of work, the number of

personnel to be employed from time to time, and to contract

out any of its work or operations;

(d) institute changes in job and their content as well as job

assignments, the extension, limitation, curtailment or

cessation of operations, and determine all other functions and

- 5-prerogatives heretofore vested m and exercised by the

Company which shall not be inconsistent with the express

provisions of this agreement.

(e) make and enforce and alter from time to time rules and

regulations to be observed by the employees which shall not

be inconsistent with the provisions of this agreement. Such

rules shall be discussed with the Union Committee prior to

their implementation by the Company.

(f) requrre medical examinations by a Company appointed

physician for any work related reason, it being understood

that an employee required to take such examination shall co

operate with any medical practitioner so appointed and to

authorize the release of medical reports to the Company and

that the Company shall undertake to reimburse such

employees in respect of the costs of such examinations.

3.02 The Company agrees that these functions will not be exercised in a manner inconsistent

with the provisions of this agreement.

., -6-

ARTICLE IV- UNION SECURITY AND DUES CHECK-OFF

4.01 The Company and the Union agree that any employee who wishes to do so and who has

completed his probationary period shall be entitled to join the Union. It is understood that

neither the Company nor the Union, nor anyone on their behalf, shall discriminate against,

interfere with or in any way harass any such employee in order to persuade him to join or

not to join the Union.

4.02 The Company agrees to deduct from the wages of all employees regular monthly Union

dues in the amount as certified as being the current monthly Union dues in force by way of a

written notice from the Union and to remit same to the Union office by the fifteenth day of

the month following the month in which the deduction was made. The Company also

agrees to deduct a Union initiation fee, this fee to be deducted on the pay immediately

following the first pay on which union dues are first deducted. This initiation fee, as of the

date of signing this contract, is ten dollars (10.00) and may be revised by the union.

4.03 For the purposes of this article the address of the "Union office" is:

National Automobile, Aerospace,

Transportation & General Workers

Union of Canada (CAW) Local462

274 Alliance Road

Unit#l

Milton, Ontario

L9T2V2

4.04 The Union agrees to indemnifY and save the Company harmless against all suits, actions,

causes of action and claims of any kind or nature whatsoever which may arise by reason of

the deduction of dues as aforesaid.

- 7-

4.05 The Union will not engage in Union activities during working hours or hold meetings at any

time on the premises of the Company without permission of management.

4.06 The Union, for itself and its members, recognizes the Company's responsibility to meet the

requirements of its customers and that customer demands are the source of employment for

the Company's employees. The Union therefore agrees to co-operate with the management

of the Company in its efforts to satisfY its customers and will not resist the Company's

efforts to improve the accuracy and efficiency of its production, to produce quality work or

to reduce poor work. The Union further agrees that no employee shall be obliged to honour

picket lines at the premises of any other Employer and that the Company may require

employees to cross such picket lines.

4.07 It is understood and agreed that employees shall not use Company time for the transaction

of private or personal business. Neither shall they do any work on the products of the

Company outside the specified hours of work except at the request of the Company, and

then only on recorded time.

4.08 Members of supervision will not perform scheduled bargaining unit work other than that

which occurs during their normal activity. The normal day-to-day activity includes but is

not limited to emergencies, safety, training, testing and development work. Should

overtime work be scheduled amongst bargaining unit members then such work will not be

performed by supervisors. In the event of a bargaining unit member not showing up or

there is insufficient response to the overtime request for scheduled overtime it shall be the

supervisor's decision to do the work himself or re schedule such work. In case of

emergency and after obtaining approval of the Chairperson (or their alternate if Chairperson

is not available), such approval is not to be unreasonably withheld, Managers and

Supervisors may operate power equipment for the purpose of inspection, locating inventory

or cycle counting.

- 8-

4.09 Inventory Reconciliation and inspection which does not require the use of Power Lift

Equipment, is not to be exclusively considered work that must be performed by a Union

member.

4.10 The Employer has the right to hire temporary employees so long as the intent of Article

12.01 re: Seniority, is maintained by the Company.

4.11 The Company shall be permitted to use outside Licensed Skilled Trade contractors for

maintenance work provided that they have their WSIB certification. Such credentials to be

made available to the Chairperson upon request. Licensed Skilled Trades Contractors must

follow Company internal Health & Safety Procedures.

ARTICLE V- NO DISCRIMINATION OR COERCION

5.01 The Employer and the Union agree that there shall be no discrimination, interference,

restraint or coercion exercised by either of them, their members or representatives with

respect to any employee as per the Human Rights Code of Ontario.

5.02 The Union further agrees that there shall be no solicitation of members or other Union

activities on the premises of the Company, or during the working hours of employees,

except as permitted by this agreement.

-9-ARTICLE VI- REPRESENTATION

6.01 The Employer recognizes the right of its employees in the bargaining unit as described

herein to elect or otherwise select three (3) committeepersons, including the chairperson

who must come from the day shift, from among the employees with more than twelve (12)

months continuous service with the Company to assist employees in the processing of

grievances to the designated representatives of the Company in accordance with the

grievance procedure herein. The said committeepeople shall constitute the employee

representatives to the Union negotiating committee for the purpose of negotiating a renewal

of this agreement at the end of its term.

6.02 The Union acknowledges that members of committees and Union officers have regular

duties to perform on behalf of the Company and that such persons shall not leave their

regular duties without first obtaining the permission of their direct work supervisor.

Twenty-four (24) hours notice in advance shall be given except that in the case of a

discharge or suspension grievance the said time limit shall not apply, it being understood

that a Committeeperson may be required to advise such direct work supervisor as to the

nature of the business requiring his absence and the time of his return. It is agreed that

permission to be absent on authorized business arising out of this agreement shall not be

unreasonably withheld.

6.03 The Union shall be entitled to select from among the members of the Bargaining unit

individuals to represent their interests for the following committees: 1) Health & Safety 2)

Grievance 3) Negotiating and 4) Such other committees as required by Law. It is agreed by

the parties that the number of union persons on these committees shall not normally exceed

three (3) persons and is intended to be the same as the number of persons representing

management. The company agrees that members of such committees shall act without loss

of regular earnings at their base rate of pay for all time lost while engaged in the work of

such committees in meetings arranged with the Company during regular working hours. It

is further understood and agreed that individual time off required f~r purposes other than

- 10-

negotiations shall not exceed three (3) hours per month. Arrangements for times of meeting

shall be by mutual agreement of the parties.

6.04 The Union will notify the Company in writing of the names of its committeepeop1e and

local officers.

6.05 The Company agrees that an authorized staff representative of the Union may assist

employees in the presentation of grievances from and after Step No. 2 of the grievance

procedure at the request of either party and may assist committeepeople in negotiations with

the Company.

6.06 During the term of this agreement, meetings of the grievance committee with management

may be held at the request of either party upon reasonable notice at a mutually convenient

time and place, the presence of a Union representative shall be at the request of either party.

6.07 The parties agree that stewards and committeepeoplc have a duty to both the Union and the

Company in the administration of this agreement.

ARTICLE Vll- GRIEVANCE PROCEDURE

7.01 The committee appointed under Article 6.01 shall be the employee's grievance committee,

one (1) member of which shall be its chief spokesman.

7.02 It is the mutual desire of the parties hereto that complaints of employees shall be adjusted as

quickly as possible, and that an employee has no grievance until he has first given his

Warehouse Manager an opportunity of adjusting his complaint. Such complaint shall be

discussed with his Warehouse Manager within three (3) working days after the

circumstances giving rise to the complaint have occurred and, failing settlement, it may be

taken up as a grievance within two (2) working days following the advice of theW arehouse

Manager's decision in the following manner and sequence:

- 11-Step No.1

The employee, who may be assisted by a Committeeperson, if he so desires it, shall submit

·a written grievance signed by him and presented to his Warehouse Manager. The nature of

the grievance and the remedy sought shall be set out in the grievance. The grievor shall

endeavour to identify the specific clause violated. The Warehouse Manager shall deliver

his decision in writing within three (3) working days following the day in which the

grievance is presented to him. Failing settlement, then:

Step No.2

Within two (2) working days following the decision under Step No. 1, the employee

assisted by a Committeeperson if he so desires may submit the written grievance to the

National Distribution Services Manager. The National Distribution Services Manager will

deliver his decision in writing within five ( 5) working days from the date upon which the

written grievance is presented to him. Failing settlement:

Step No.3

The party filing the grievance may, within five (5) working days from the date upon which

the reply is received at Step No. 2, request a meeting with the other party in order to discuss

the grievance. Such meeting shall be held within ten (1 0) working days (or within such

further period of time as the parties may mutually agree upon in writing) of the date upon

which such request for further meeting is made. It is understood and agreed that the Union

may have a staff representative present at such meeting and that the Company may have any

of its executives and/or counsel in attendance. The party against whom the grievance has

been filed shall issue its reply within five (5) working days of the meeting, as aforesaid.

7.03 Failing settlement under the foregoing procedure of any grievance between the parties

arising from the interpretation, application or alleged violation of this agreement, including

any question as to whether or not a grievance is arbitrable, such grievance may be submitted

to arbitration as set forth in Article VIII herein. If no written request for arbitration is

received within fifteen (15) working days after the decision undl'( Step No. 3 is given, it

shall be deemed to have been settled and not eligible for arbitration.

- 12-

7.04 All agreements reached under the grievance procedure between the representatives of the

Company and the representatives of the Union shall be final and binding upon the Company

and the Union and the employees.

7.05 ln the case of an alleged continuing violation of the collective agreement no adjustments

effected under the grievance or arbitration procedures herein shall be made retroactive prior

to the date upon which the grievance was first formally discussed or presented. 1bis

paragraph shall not prevent any adjustment of clerical errors made in the computation of

pay.

7.06 Where no answer is given within the time limits specified in the grievance procedure, the

employee concerned, the Union and the Company, shall be entitled to submit the grievance

to the next step of the grievance procedure. Any grievance not processed within the time

limits specified in the grievance procedure or in accordance with this article shall be

deemed to have been settled and ineligible for arbitration, subject only to the provisions of

Article 8.04 herein.

7.07 ln any arbitration the written representations of the employees made at Step No.1 and 2 and

the decision of the Company at Step No. 3 of the grievance procedure (or in the case of a

difference directly between the Company and the Union, the written submissions by the

party initiating the discussion of the difference and the written reply thereto of the other

party) shall be presented to the arbitrators and the award of the arbitrators shall be confined

to determining the issue therein set out. It is understood that such representatives in writing

shall state the nature of the grievance, the remedy sought and the provisions of this

agreement upon which it is alleged that the grievance is based.

7.08 A grievance brought by the Company against the Union alleging a violation of this

agreement shall be commenced at Step No.3 of the grievance procedure herein and the time

limits provided for in that step shall appropriately apply.

- 13-ARTICLE VIII- ARBITRATION PROCEDURE

8.01 Any grievance which has· been handled in accordance with Article 7 and has not been

settled may be referred in writing by either party to arbitration within a period of not more

than five (5) working days after the expiration of the time limits at step number 3. At the

same time, the parties sending the notice shall appoint their nominee to the Board of

Arbitration. Within five (5) working days thereafter, the other party shall appoint their

nominee and shall so notify the other party. The two (2) nominees shall, within ten (1 0)

working days thereafter, attempt to select by agreement, a third person to be a member and

chairman of the Arbitration Board. Should the two (2) nominees so selected be unable to

agree upon a chairman, either one or both of them may then request the Ontario Labour

Relations Board to appoint an individual to act as a third member ofthe Board and to Chair

the Arbitration. This procedure, however, does not prevent either party from exercising the

rights contained in section 49 of the Labour Relations Act or, with the consent of both

parties, to have the grievance heard by a mutually acceptable sole arbitrator within the time

limits prescribed within.

8.02 No person may be appointed as a nominee who has been involved in any attempt to settle

the grievance.

8.03 Each of the parties hereto will bear the expense of their nominee and the parties shall jointly

share the fees and expenses of the Chairman of the Board of Arbitration.

8.04 No matter may be submitted to arbitration which has not been properly carried through

previous steps of the grievance procedure. However, it is understood that any of the time

limits referred to in Article 7 and 8 shall only be extended in writing by mutual agreement

of the parties. Section 43.1(6) shall not apply to the terms and conditions of this Collective

Agreement.

8.05 The Board of Arbitration or the sole arbitrator, as the case may be, shall not be authorized to

make any decision inconsistent with the provisions of this agreement, nor shall the Board of

- 14-Arbitration of the sole arbitrator, as the case may be, be entitled to alter, modifY or amend

any part of the provisions of the Collective Agreement. The decision of the majority of the

Board of Arbitration or the sole arbitrator, as the case may be, shall be fmal and binding

upon the parties hereto and any employee or employees effected by it. In the event that

there is no majority, the decision of the Chairman shall govern.

ARTICLE IX- DISCHARGE AND DISCIPLINE

9.01 In the event that the Company initiates disciplinary action against an employee who has

completed his probationary period and which results in the suspension or discharge of such

employee, such disciplinary action shall be confirmed in writing by letter to the employee

involved, setting forth the action taken and the penalty imposed. Under these circumstances

the employee has a right to have a Union Steward present ifhe chooses, and will be advised

of this right by Management prior to the disciplinary action. In the event the Company has

reason to discharge an employee who has violated articles 12.05 and 17.02 and the

attendance guidelines the Company shall notifY the Union in writing of the employees

discharge and will mail a letter of discharge to last known address of the employee provided

the employee is not actively at work. If the Union is unable to provide a cornmitteeperson

for any given shift, the company will use reasonable efforts to deal with issues which would

normally require a Union representative, during hours that such Union representation is

available. In the case of disciplinary action where no Committeepersons are available, the

Company will be permitted to administer the discipline provided the employee will have the

option to select a co-worker as a witness to the conversation. In such event the Company

will promptly notifY the Chairperson by leaving a message on the union voicemail

extension.

9.02 Whenever the Employer deems it necessary to reprimand- an employee indicating that

dismissal may follow if such employee fails to bring his work up to a required standard by a

given date or if there is a repetition of the matter complained of, the Employer shall, within

ten (1 0) working days thereafter, give written particulars of such censure to the employee

involved.

- 15-

9.03 A claim by an employee who has completed his probation period that he has been

suspended, discharged or disciplined without just cause shall be treated as a grievance if a

written statement of such grievance is lodged with the Company commencing at Step No. 2

of the grievance procedure within five (5) working days of such suspension, discharge or

discipline. Suspensions shall be served at the time the discipline is handed out to the

employee.

9.04 Such grievance may be settled by confirming the Company's action or by reinstating the

employee, with or without compensation for the time lost, or by any other arrangement

which is just and equitable in the opinion of the conferring parties or the board of

arbitration, if the matter is submitted to arbitration, subject only to the provisions of

Schedule "A" attached hereto and forming part of this agreement.

9.05 The Union agrees that as a part of his work responsibility each employee shall be

responsible for examining work received and shall not, without the prior written approval of

his supervisor, cover up, process or pass on, defective or inaccurate work to the next

operation. Violation of this article may be the subject of disciplinary action.

ARTICLE X- NO STRIKE, NO LOCK-OUT

10.01 The Company agrees that there will be no lock-out of its employees during the currency of

this agreement and the Union agrees that there will be no strike, slow down, including

cessation of work, refusal of work or to continue to work by employees, or other concerted

activity on the part of employees designed to restrict or limit output.

10.02 The parties agree that the words "strike" and "lock-out" shall have the meaning attributed to

them under the provisions of the Labour Relations Act, R.S.O. 1970, Chapter 232, as

amended.

- 16-10.03 The Union agrees that it will not involve any employee of the Company or the Company

itself; either directly or indirectly, in any dispute which may arise between any other

employer and the employees of such other employer.

10.04 It is further agreed that the Union will not obstruct, prevent or interfere with the installation

of new or changed machinery, will not impose restrictions or limitations on employee's

production, efficiency or quality, cause absenteeism by any Union activity, and will not

resist Company efforts to man its operations in accordance with its needs.

ARTICLE XI- GENERAL

11.01 The Company shall be deemed to be the primary employer of all bargaining unit employees

and the Union agrees that no employee shall be entitled to secure a second or additional

source of employment without first notifying the Company of their intentions and providing

the Company with the assurance that the second or additional source of employment will

not interfere with the Company's operations; adversely affect the employee's performance;

or pose a safety risk to the employee, or others in the workplace.

11.02 In the event that the Company is obligated by law to contribute towards the costs ofbenefits

similar to one (1) or more of the benefits now provided by the Company, the Company may

terminate or revise such benefit plan in order to eliminate any duplication of benefits

coverage or to ensure that any additional costs imposed by law are set off by reductions in

the costs of the Company contributions.

11.03 Probationary employees may be hired by the Company into any classification at a rate of up

to twenty percent (20%) below the rate established for the job class the employee is hired

into. This rate is to be ascertained by the Company upon the basis of previous experience

and may continue for the full probationary period.

11.04 The Company's major rules, as agreed to by the parties hereto are attached hereto and forms

Schedule "A" to this agreement.

- 17-

11.05 Employees who will be absent for their shift, or part of their shift, are required to call in at

least one (1) hour in advance of the start of their shift to notify their supervisor.

11.06 A doctor's note is required for absences of three (3) consecutive working days or more. If

an employee returns to work without the necessary doctor's note they will be sent home

without pay until a doctor's note is provided to their Supervisor. Company will reimburse

employees to a maximum of $15.00 for the cost of mandatory doctor's notes.

ARTICLE Xll- SENIORITY

12.01 An employee will be considered on probation and will not be subject to the seniority

provisions of this agreement, nor shall his name be placed on the seniority list, until after he

has successfully completed sixty (60) working days in the employ of the Company in any

one (I) year period. Upon completion of such probationary period the employee's name

shall be placed on the appropriate seniority list with seniority dating from the first day

worked immediately following the completion of his probationary period. The dismissal or

discipline of a probationary employee shall not form the subject matter of a grievance nor

shall it be referred to arbitration nor shall a board of arbitration have jurisdiction to consider

the matter.

12.02 A seniority list shall be posted annually on the plant bulletin board.

12.03 In the event of a work shortage which causes the lay-off of employees and for the purpose

of recalling those to work who have been laid off; the following factors shall be considered:

(a) seniority;

(b) the efficiency, skill, ability and physical capacity of

employees to perform the available work;

- 18 -it is agreed, that in circumstances where as between two (2) or more employees, the factors

set forth in clause (b) above, are relatively equal in the opinion of the Company, seniority as

herein defined will govern the Company in determining the order of lay-off and the recall to

work, of employees, following a lay-off. In the case of temporary lay-off, the company will

canvas employees on the basis of most senior first to accept a lay-off. If there are

insufficient volunteers, the company will layoff in sequence of most junior first.

12.04 The Company may lay-off an employee for a period not to exceed five (5) working days in

any six ( 6) month period without regard to the provisions of this Article XII.

12.05 An employee shall lose all seniority and shall be conclusively deemed to have quit his

employment with the Company if he:

(a) voluntarily quits the employ of the Company; or

(b) he is discharged and such discharge is not reversed

through the grievance and arbitration procedures

herein; or

(c) fails to notify the Company within two (2) working

days that he will report to work, or subsequently fails

to report to work within five (5) working days after

being notified by the Company to report for work,

unless a reason satisfactory to the Company is given;

or

(d) is absent due to a lay-off of more than six ( 6) months

or if the employee has five years seniority or more,

twelve (12) months, or,

(e) fails to return to work upon the termination of an

authorized leave of absence unless a reason

satisfactory to the Company is given for such failure

to return to work; or

- 19-(f) utilizes a leave of absence for purposes other than

those for which the leave of absence was granted,

unless a reason satisfactory to the Company is given.

12.06 Employees shall be required to notify the Company of any change of address or telephone

number. The Company shall be entitled to rely upon the last address ai:J.d telephone number

furnished to it by the employee for all purposes.

12.07 Employees are required to keep the Company informed on a regular basis of their prognosis

and expected date of return to work. On the day the employee is eligible for Short Term

Disability (11th day of continuous illness) it is agreed that they will contact the Human

Resources Department who will than determine if weekly call-ins are required.

12.08 Persons who were previously employed within the bargaining unit, may return to positions

within the bargaining ·unit with seniority based on their length of service in the bargaining

unit provided they do not return to a position higher than the one previously held and further

provided that no bargaining unit member is demoted or laid off.

12.09 In the event of a shift change or job posting the criteria used to determine the affected

employee shall be as set out in Article 12.03.

12.10 The Company will not contract out any work currently done by bargaining unit members

where such contracting out would directly result in the lay-off of a bargaining unit member.

Should such contracting out occur, the company would protect the employment of current

employees, and reduce the number of employees through normal attrition.

-20-

ARTICLE Xlll- PROMOTIONS AND TRANSFERS

13.01 The Company shall post notice of a permanent job vacancy or a newly created job for a

period of two (2) working days before any such job is permanently filled. This shall be

considered the First Posting. If this position is filled internally by an employee currently

within the Union, and this vacancy creates another such permanent job vacancy, then there

will be a Second Posting of two (2) working days for this position.

If the second position is also filled internally, there will be no Third Posting.

A notice of job vacancy or job created shall set forth generally the requirements of the

position. Any employee having seniority may make written application in duplicate for

such posted job, one (1) copy of the application being submitted to the Company and the

other to the Union Committee.

13.02 No employee may have more than one (1) successful bid for a posted job in any four (4)

month period.

13.03 In all cases of appointing an employee to a posted job the efficiency, skill, ability and

competence of employees and their willingoess to do the work shall be considered by the

Company as governing factors in making such appointment. When efficiency, skill, ability

and competence are relatively equal as between two (2) or more employees in the opinion of

the Company, seniority shall be a consideration.

13.04 Nothing in this article shall be construed as restricting the right of the Company to

temporarily assigo an employee to a job on a tempormy basis until arrangements have been

made to promote or transfer the employee selected to fill a vacancy, it being understood that

such time shall not exceed fourteen (14) working days unless otherwise agreed to by the

Union Committee.

13.05 No vacancy shall be deemed to exist if an employee is absent with leave.

-21-

13.06 It is understood and agreed that if there are no qualified applicants for a posted job during

the two (2) day period set forth in Article 13.01 herein, the Company shall have the right to

hire from outside.

13.07 The position of Team Leader shall be posted as per Article 13.01. In determining the

successful applicant for this position the Company shall consider the efficiency, skill,

ability, competence and leadership qualities of all applicants. The right to appoint the

successful applicant shall be at the sole discretion of the Company.

13.08 Employees promoted by the job posting process and cannot meet the expectations of the

position within forty ( 40) working days, may be moved back to their old job.

ARTICLE XIV- HOURS OF WORK AND OVERTIME

14.01 The normally scheduled hours will be on the basis offorty ( 40) hours per week and eight (8)

hours of work per shift exclusive of lunch period. It is expressly understood. that provisions

of this article are intended only to provide a basis for calculating time worked and are not a

guarantee as to the hours of work per day nor as to the days of work per week nor as a

guarantee of working schedules.

14.02 Authorized work which the Company requires the employee to perform in excess of the

employee's normally scheduled hours in excess of eight hours daily, five days weekly, or in

excess of four hours on Saturday, will be paid for at the rate of time and one-half (1 112) the

employee's regular straight time hourly rate as set forth in Schedule "B" attached hereto and

fonning part of this agreement. It is further agreed that all hours scheduled on a Saturday

for the purpose of taking inventory shall be paid for at the rate of time and one-half (1 1/2).

Authorized work performed on a Sunday which is in excess of the employee's regularly

scheduled hours shall be paid at two (2) times the employee's regular rate.

- 22-14.03 The Company shall endeavour to schedule overtime work from amongst those employees

who volunteer to work overtime and shall distribute such overtime work as equitably as

possible amongst the employees who are able and competent to do the work. An employee

who does not work the overtime shall be charged with overtime so scheduled for the

purposes of calculation of equitable distribution in the event that he is asked to work

overtime and refuses. If the Company is unable to find enough employees to work overtime

it may schedule employees to work such assignments and an employee so scheduled shall

be obliged to work. The Company will schedule the most junior employee(s) able and

competent to do the work. If the Company misses an employee entitled to work an

overtime opportunity the Company will reimburse that employee for all time missed at the

overtime rate. The Company will make reasonable efforts to canvass for overtime prior to

I :30 pm and for the second shift, prior to 6:30pm.

14.04 A relief period often (10) minutes away from work shall be provided during the second or

third hour of each (1/2) shift.

14.05 An employee called back to work after he has left the plant at the end of his shift shall be

guaranteed a minimum of three (3) hours pay or one and one-half (1 1/2) times his regular

straight time hourly rate for all hours worked, whichever is the greater sum. An employee

called in to start a shift early shall receive time and one-half (1 112) for all hours worked in

advance of his regular starting time. It is understood that the provisions of this clause shall

not apply to a scheduled Saturday shift.

14.06 The afternoon shift is considered to be any shift with a starting time of 10:30 am, or later,

and normally continuing for eight (8) hours, exclusive of a thirty (30) minute break period.

The night shift is considered to be any shift with a starting time of 8:00 pm, or later, and

normally continuing for eight (8) hours, exclusive of a thirty (30) minute break period. In

addition to the employee's regular hourly base rate, a shift premium will be paid to all

employees commencing work on the recognized afternoon or night shift, for all regular

hours worked as follows:

- 23-Shift Premiums Afternoon Night Shift

Shift

Year 1 34¢ 60¢

Year2 35¢ 62¢

Year3 36¢ 64¢

It is understood that such premiums shall not apply to overtime hours.

14.07 Employees may bank overtime worked at a premium time (i.e.: one hour overtime equals

one and one half-hours banked) to a maximum of thirty-three (33) hours banked in any one

calendar year. Such banked time may be taken by mutual agreement of the Company and

the employee from December 15th to March 15th. Banked time cannot be carried past

March 15th and any unused-banked time as of March 16th shall be paid out the first pay in

April.

-24-

ARTICLE XV- PLANT HOLIDAYS

15.01 Employees shall receive the following plant holidays with pay:

New Year's Day Good Friday Victoria Day Canada Day Civic Day

Labour Day Thanksgiving Day Christmas Day Boxing Day Family Day

plus I Float Day (Selection of day by company)

Any other government declared statutory holiday shall be included as a paid holiday.

15.02 In order to quality for plant holiday pay an employee must be in the employ of the Company

and is obliged to work each of his regularly scheduled shifts immediately preceding and

immediately following the plant holiday concerned unless an employee so affected was

absent due to:

(a) verified illness or accident (not covered by Workmen's Compensation) for a

period not exceeding thirty (30) calendar days inclusive of the plant holiday;

(b) lay-off for a period in excess of fifteen (15) calendar days in advance of the

said plant holiday.

15.03 Should any of the plant holidays fall on a Saturday, the preceding Friday shall be considered

the holiday and, if any of the said holidays should fall on a Sunday, the following Monday

shall be considered the holiday or the Company will follow industry practice in setting the

day of any of the above mentioned holidays and advise employees no less than one (1)

mouth in advance of the holiday of the days selected.

15.04 Authorized work which the Company requires an employee to perform on a plant holiday

shall be paid for at the rate of time and one-half (1 112). the employee's regular straight time

- 25-

hourly rate for all hours worked on the plant holiday in addition to his plant holiday pay. It

is agreed that plant holiday pay shall consist of eight (8) hours pay.

ARTICLE XVI- VACATIONS

16.01 Employees working for the Company in the twelve (12) months preceding July 1st in any

year shall be entitled to vacation and vacation pay computed on the following basis in

accordance with such employee's service with the Company:

(a) upon completion of one (1) year (twelve (12) months) of service in the

employ of the Company as at June 30th, the employee is entitled to two (2)

weeks of vacation with pay.

(b) upon completion of five (5) years of service as at June 30th, the employee is

entitled to three (3) weeks of vacation with pay.

(c) upon completion often (1 0) years of service as at June 30th, the employee is

entitled to four ( 4) weeks of vacation with pay.

(d) upon completion of twenty-five (25) years of service as of June 30th, the

employee is entitled to five (5) weeks of vacation with pay.

(e) pay will be computed on 2% of previous year's earnings or 1 week's pay for

each week of entitlement, whichever is greater; any employee who was on

Long Term Disability during the vacation year would just be entitled to 2%

of previous years earnings.

(f) employees with less than twelve (12) months service with Gesco prior, as at

June 30th, will be entitled to one (1) day of vacation for each full month of

employment to a maximum often (10) days. Pay will be based upon one (1)

-26-day's regular pay per day of vacation or 4% of earnings for the vacation year

to date, whichever is the greater.

16.02 All vacation pay allowances shall be paid immediately prior to the start of a scheduled

vacation provided that the employee requests it in writing thirty (30) days prior to the

commencement of his vacation and provided that the vacation to be taken is at least five ( 5)

working days duration.

16.03 If for any reason the employment of an employee with the Company is terminated, he shall

receive with his final pay cheque all vacation pay due and owing to him.

16.04 If the day of observance of one of the plant holidays contained in this agreement falls within

the scheduled vacation of any employee, such employee shall be paid for such holiday or

given an additional day of vacation with pay, at the option of the Company, depending upon

the arrangements which the said employee has made with the Company prior to his

departure on vacation.

16.06 It is understood and agreed that the Employer shall be entitled to close its business or go on

a reduced staff for a vacation period upon giving employees sixty ( 60) days notice in

advance of the commencement of such vacation period and that employees shall be obliged

to take their vacation during the period of such shutdown.

-27-

16.07 Vacation Entitlement And Scheduling

(A) All vacation entitlement must be take11 during the 12 months following July 1st.

(B) Lists setting out each employee's vacation entitlement shall be posted by April 1st of each

year requesting employees to consider their preferred choices for the year.

(C) The vacation selection process will involve two (2) rounds. During the first round,

employees entitled to two (2) or more weeks vacation shall be limited to indicating their

preference for a maximum of two (2) weeks in the period May 1st to September 30th,

inclusive. Between April 1st and April 14th, employees will have up to 1 working day,

upon notification, to select their vacation. Only full week requests will be considered for

the May 1st to September 30th period. If there is available time after all full week

requests are granted, requests for vacation periods of less than one (1) week will be

considered. All first round selections are to be finalized by April 15th.

(D) A vacation schedule will be posted by April 16th setting out each employee's vacation for

the period May 1st to Sept. 30th. Round one (I) vacation entitlement will be based on

seniority.

(E) In the second round of vacation scheduling, April 16th to May 1st, employees will be

asked to indicate their preferred choices for the balance of their vacation entitlement.

Vacation time will be granted on the basis of seniority. After May 1st and prior to May

15th, an updated vacation list will be posted.

(F) After May 15th, vacation requests will be considered on a 'first come, first served' basis

without regard to seniority.

(G) Requests for all outstanding current year vacation entitlement are to be submitted in

writing by February 151h. If no request is received, the supervisor will approach the

employee and offer him a choice of remaining available dates. If the employee does not

-28-indicate preferred dates, the supervisor will schedule vacation time on behalf of the

employee.

(H) The Company and the Union agree that the following factors will be taken into

consideration in the granting of vacation time:

(a) up to twelve percent (12%) of the total number of bargaining unit employees

can be on vacation simultaneously during the period May 1 and Labour Day

weekend, and up to ten (1 0%) during the balance of the year. The parties

acknowledge that for the 2008 vacation year, the current number of

employee's support five (5) on vacation simultaneously. This calculation will

be updated each summer ·vacation period. The Company may, at its

discretion, grant vacation time to more than this number of employees

depending on the needs of the business.

(b) not more than three (3) day shift employees on vacation, at any given time

(c) not more than two (2) afternoon shift employees on vacation, at any given

time

(d) maximum of one (1) Class I per shift, at any given time

(e) maximum of two (2) Shippers per shift, at any given time

(f) during peak sales season (May to September, inclusive), employees will be

limited to a total of two (2) weeks vacation

(g) vacation time will be granted on the basis of seniority.

(I) Employees with four (4) weeks of vacation entitlement may elect to receive (1) one week's

pay in lieu of time off. Requests for pay in lieu of vacation must be made in writing.

-29-

ARTICLE XVII- LEAVES OF ABSENCE

17.01 An employee may be allowed a leave of absence (LOA) without pay for legitimate personal

reasons upon making application for same to the Company. The Company agrees that

requests for such leaves of absence for personal reasons will not be unreasonably withheld.

Application for such leave must be made in writing. Outstanding vacation must be used

before applying for leave of absence except in cases of emergency with the proper

documentation.

(a) The Company will allow at least two (2) LOA's per year between December 1'' and

March 1 '' and may, at is option, allow more depending on the circumstances, business

needs, and timing.

(b) The maximum LOA required to be granted will be 2 weeks; however, this may be

extended by combining it with unused vacation.

(c) If the employee has no vacation remaining and the need for the LOA is urgent, the

company, at its option, may allow an advance ofthe next years vacation entitlement for

up to an additional give ( 5) working days.

(d) If there are more than two (2) requests, and in the company's judgement the business

needs cannot permit more than the minimum required two (2) LOA's, the allocation of

LOA's will be assessed jointly by the Company and the Chairperson on the basis of

fairness, personal circumstances, and LOA's which have been granted in prior years to

any of those currently requesting an LOA.

17.02 An employee who obtains gainful employment with another Employer while on such leave

may be terminated by the Company.

17.03 In the event of the death of an employee's mother, father, parent-in-law, spouse, child,

brother, sister, grandparent, grandparent-in-law, brother-in-law, or sister-in-law, an

employee so affected will be granted up to three (3) working days leave of absence without

loss of regular pay to make arrangements for and to attend the funeral or equivalent service.

It is understood that an employee shall not receive payment for absence on a day or days on

- 30-which he would not otherwise have worked pursuant to the provisions of this clause. If the

employee is attending the funeral or equivalent service out of Province, the employee will

be entitled to one (1) additional day off without pay. In the event of the death of an

employee's Aunt or Uncle an employee may use banked time, vacation or unpaid leave of

absence to attend the funeral using one day for in town and two days for out of town and

provide proof of death when requested.

17.04 An employee selected as a juror or required to attend in court as a subpoenaed crown

witness shall be paid the difference between his juror's or witness fee and his regular

straight time hourly rate upon presentation to the Company of a statement from the Clerk of

the Court or Crown Counsel, as the case may be, attesting to the fact of his attendance and

recapitulating the amount or amounts paid to him as juror or crown witness fees. In any

case the Company shall have the right to request the deferment of crown witness or jury

duty if it considers the employee's service to be required at the time.

ARTICLE XVIII- BULLETIN BOARDS

18.01 The Company agrees that it will provide space for the purpose of the Union upon the plant

billboard and the Union may use such bulletin board for the posting of notices pertaining to

Union business but that all such notices must be signed by a proper officer of the Union and

submitted to the Company for approval before being posted. The Company agrees that

approval of the posting shall not be unreasonably withheld.

ARTICLE XIX-WAGES

19.01 The regular straight time hourly rates shall be those set out in Schedule "B" attached hereto

and forming part of this agreement.

- 31 -ARTICLE XX- SAFETY

20.01 It is agreed that the Occupational Health and Safety Act R.S.O. 1990 as amended by S.O.

-- 1992 c. 14 s.2 hereafter referred to as the Health and Safety Act is incorporated into and

forms part of this agreement. The Employer and the Union agree to abide by those

provisions unless this agreement provides otherwise. Amendments to the Health and Safety

act indicated above shall not be incorporated into this agreement except by mutual

agreement of the parties.

20.02 (a) A joint Health and Safety Committee shall be established which is composed of an

equal number of Union and Employer representatives the joint Health and Safety

Committee shall be co-chaired by one union representative and one Employer

representative and shall hold meetings at least once per month. Minutes shall be

taken of all meetings and copies provided to the Employees and the Union.

(b) The Employer agrees to ensure that the Health and Safety Committee is trained in a

course or courses to be determined by the Committee to enable them properly to

carry out their mandate. All costs associated with this training including any lost

time shall be borne by the Employer.

(c) The entire workplace shall be inspected by a worker member of the Committee no

less than once every six months.

20.03 (a) No employee including temporary or probationary employees shall operate any

equipment or use any designated substances until they have received the proper

training as designated by the Occupational Health and Safety Act which shall include

but not be limited to WHMlS, forklift and boom truck training.

(b) The Employer agrees that no new substance, material, agent or chemical shall be

introduced into the workplace without a complete review by and approval of the joint

health and safety committee.

- 32-(c) Any Employee affected by a stoppage of work under this agreement whether

because of action of a Certified Representative, an Inspector or a refusal to perform unsafe work will be paid at his applicable hourly rate for the duration of the stoppage.

Management reserves the right to redeploy the affected employees to other suitable

work.

20.04 The Company agrees to supply each employee with such safety apparel as it requires employees to wear on their job and in the case of safety boots, will contribute one hundred dollars and eighteen dollars and fifty cents, ($118.50) towards the cost of safety boots or shoes in the first year of the contract, one hundred and twenty-one dollars and fifty cents ($121.50) towards the cost of safety shoes or boots in the second year of the contract, and one hundred and twenty-four dollars and fifty cents ($124.50) towards the cost of safety shoes or boots in the third year of the contract, upon submission of a paid receipt. The company will also absorb the cost of the GST in the first, the second and the third year of the contract. The company will provide rubber boots for the use of employees required to shovel snow or as necessary. In addition to the allowance specified, the Company will contribute towards the purchase of a second pair of safety shoes or boots if required, for any employee working as a Carpet Machine Operator, Carpet Machine Wrapper and/or 12 Foot Vinyl Cutter who, in the normal performance of their duties, is likely to require more than one (1) pair of safety shoes or boots per year, due to wear and tear caused by the nature of their work.

20.05 All employees are obligated to wear or use protective clothing or equipment and abide by the Safety Rules which the Company makes mandatory, or as may be required by the Occupational Health and Safety Act of Ontario.

20.06 The Company and the Union agree to co-operate to provide an Early and Safe Return to Work (ESRTW) Program, the purpose of which is to provide fair and consistent practices for accommodating employees who have been ill, injured or permanently disabled. This program is developed to ensure at a minimum, adherence to the Workplace Safety and Insurance Act, the Human Rights Code of Ontario and the Collective Agreement.

- 33 -

ARTICLE XXI- WELFARE

21.01 It is understood and agreed that the welfare provisions ofthis agreement are those set forth

in Schedule "C", attached hereto and forming part of this agreement and that the only

obligation upon the Company uoder the terms of the welfare provisions of this agreement is

to pay a percentage of premium costs and that the Company shall not be deemed to be an

insurer or in anyway liable to pay directly to employees any of the benefits provided for

herein, it being expressly understood that the provisions here following are not to be

construed as a guarantee of specific coverage or eligibility for benefits and that these will be

in accordance with the provisions of the specific policies of insurance held.

21.02 It is understood and agreed that the proportion of premium costs paid by the employees

shall be paid by the employee through payroll deduction.

21 .03 There shall be no liability on the Company to pay premiums for insurance or benefit plans

on behalf of employees who are absent from work on account of lay-off or a leave of

absence in excess of one (1) pay period; or on account of illness or accident in excess of

twelve (12) pay periods. Group benefits and insurance coverage for employees off work on

WSIB benefits will continue for up to 1 year from the start ofWSIB benefits, at which point

they will be continued if a decision has been made by all parties involved to engage the

employee in the Labour Market Re-entry (LMR) program. Benefits will continue only

while the employee is engaged in the LMR program.

21.04 The provisions of this ru;ticle shall be subject to the provisions of Article 11.02 herein.

ARTICLE XXll- DURATION

22.01 This agreement shall become effective on the 1st day of January, 2008 and shall remain in

effect until the 31st day of December, 2010, and shall continue automatically thereafter for

annual periods of one (1) year each, unless either party notifies the other in writing within

-34-

the sixty ( 60) day period immediately prior to the expiration date of this agreement that it

desires to amend, modify or terminate this agreement.

22.02 Should either party give notice as provided for herein the party giving such notice shall, at

the time of giving such notice forward a copy of its proposal for the revision, modification,

or amendments to this agreement, which it desires to make to the party upon whom such

notice is served.

22.03 Upon receipt of a notice as provided for herein the parties agree to meet within a period of

thirty (30) working days from the date upon which such notice was given, or within such

further period of time as the parties may mutually agree upon in writing and they agree to

meet and make every reasonable effort to negotiate a new agreement.

22.04 If, pursuant to such negotiations, an agreement is not reached on the renewal or amendment

to this agreement prior to the expiration date, it shall continue to operate beyond its

expiration date until fourteen (14) days after the day upon which a conciliation officer's "no

board report" is deemed to have been received, or notice is given by one (1) party to the

other of the termination of the agreement pursuant to the provisions of the Labour Relations

Act, Ontario, whichever shall first occur.

IN WITNESS WHEREOF each of the parties hereto has caused this agreement to be signed by its

du1y authorized representatives this 12th day of December, 2007.

National Automobile, Aerospace,

Transportation and General Workers

Uni of da (CAW) Local462 -------I 1

-35-

SCHEDULE"A"

RULES

The parties hereto agree that the following conduct on the part of an employee shall be deemed to

be just cause for disciplinary action up to and including dismissal from the employ of the Employer.

Disciplinary letters more than twenty-six months old in an employee's record will be disregarded by

the Company and shall not be used. (It is not required that the Company physically remove these

records from the files.)

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

Theft of the property of the Employer or of a fellow employee;

Wilful damage to the premises of the Employer or its equipment or the property of

another employee;

Driving while impaired while on the Employer's business.

Being under the influence of or consuming alcohol or a drug while on duty or during

hours of employment. On duty and during hours of employment include time spent

on paid and unpaid lunch and other break periods. It is understood that the

provisions of this clause shall not apply to an employee required to take a

prescription drug on account of illness so long as such employee has reported those

circumstances to his immediate supervisor;

False statement on employment application form;

Falsification of time records;

Unprovoked assault committed during working hours;

Refusal to obey a legitimate work instruction given by a member of supervision

unless complying with such instructions would place the life, health or safety of an

employee in jeopardy;

Conviction of an offence under The Narcotic Drug Act;

Smoking in any Company building;

The use of abusive language or threats toward customers, suppliers or other persons

performing duties in connection with the Company;

Reselling Company products bought at employee discounts;

- 36-

13. Removing Company information from the premises of the Company without

authorization;

14. Loss or suspension of driving privileges where the employee so involved is required

to drive a motor vehicle on Company business;

15. Possession of any weapons on Company property (excludes Company Supplied

tools).

I I

- 39-SCHEDULE "B"

WAGES AND CLASSIFICATION CLASSIFICATION EFFECTIVE EFFECTIVE EFFECTIVE

JANUARY 1, 2008 JANUARY 1, 2009 JANUARY 1 2010

CUTTERS $18.25 $18.85 $19.45

SHIPPERJRECEIVER $18.15 $18.75 $19.35

ORDER FILLERS $18.03 $18.63 $19.23

GENERAL LABOURER $16.65 $17.25 $17.85

TEAM LEADER Premium of$1.00 will be paid on tou of the classification rate

FORKLIFT TRAINER Premium of 50¢ will be paid on top of the classification rate

The Company agrees that a single position of Inventory Counter will be posted and will fall into the

Order Filler Classification.

HIGHER CLASSIFICATIONS

Any employee working in a higher paid classification for more than one hour, shall receive the higher rate of pay for all time so worked, provided the employee is pre-qualified to do the job. This

will not apply for employees who are being trained in a higher classification until they are fully competent.

If an employee shall be performing the duties of supervision outside of the bargaining unit, they

shall receive a premium pay of fifty cents (50¢) per hour for all hours worked. Such employee shall

be appointed by the company.

WAGE PROGRESSION

A Wage Progression will apply to all positions as per the table below, in each case relative to the

Classification in which the employee is working.

WAGE PROGRESSION Pay rate percentage of the Classification being Worked in

0 to 89 Working Days from hire date 80%

90 Working Days to 2 Calendar Years less a day 95%

At2 Years 100%

Note: Existing employees at the date of ratification, who are currently going through the Three Tier wage progression from the 2005 C.B.A., will be entitled to the new Wage Progression language or

the language contained in the 2005 C.B.A., which ever is greater.

-40-SCHEDULE"C"

WELFARE PROVISIONS

The provisions of this Schedule are provided for the sole purpose of outlining the principal features

included in the Company benefit programmes. The contents of the Schedule are not intended to be

considered the contract of insurance, the complete terms and conditions of which are set forth in the

specific policies, certificates and/or plans of insurance issued by the insuring companies.

Absences while off on WSIB benefits will reduce or eliminate the Perfect Attendance Incentive.

However, in that event, the prior years Perfect Attendance Incentive payment to that employee will

be paid again, provided it was earned through actual Perfect or near Perfect Attendance, as opposed

to being paid according to the prior year due to a WSIB related absence.

It is to be noted that the insured benefit programmes instituted by the Company are national plans

and are subject to change at any time by the Company and by the insurance carriers and that every

effort will be made by the Company to notif'y all employees fully of any such changes which may

be made from time to time.

All rights with respect to the entitlement of an employee to a specific benefit under the provisions

of any particular plans shall be governed by the group policy or policies issued by:

• Great West Life Assurance Co.

• Group Retirement Services

• RBC Insurance Company

or such other carriers as may be selected by the Company from time to time.

-41-

1. SickDays

The Company pays the full cost of a self-insured illness or accident plan which provides for

100% of normal hourly earnings per week as follows;

(a) From the first day of admission to hospital, disabling accident or outpatient

surgery that would prevent the employee from performing the essential

duties ofhis job.

(b) For illness, if not hospitalized, to the maximum entitlement under this plan.

The maximum entitlement is six (6) days in any calendar year.

A new employee is eligible to participate in the plan upon completion of three (3) months of

employment and is credited with one (1) day's entitlement for each completed month of

employment (back dated to date ofhire) to a maximum of six (6) days in any calendar year.

The Company will pay $300.00 incentive for any employee who has perfect attendance for

the calendar year. Any employee who has only one absence during the calendar year shall

receive an incentive of $150.00. Perfect attendance does not apply in the case of Parental

Leave or more than five days Leave of Absence.

2. Short-Term Sickness Plan

At the present time the Company has elected to pay the full cost of a short-term sickness

plan for the third consecutive week of illness up to and including the seventeenth

consecutive week of illness. The plan pays an employee two-thirds (2/3) of his regular

weekly pay to a maximum payment as may be established by the E.l. in legislation, it is to

be understood that any reduction in E.I. premium brought about by reason of this plan may

be utilized by the Company in funding the costs of the welfare provisions provided for

herein. To qualifY for these benefits, the employee must have completed three months of

continuous employment and be under the regular and ongoing care of a licensed physician,

-42-and be participating in a diagnostically based treatment plan. Employees are required to

provide the Company with sufficient objective medical evidence including a medical

statement of disability (these forms are available from Human Resources). Benefits are not

applicable for the following:

- as a result of wilfully self-inflicted injury or any attempt at self-destruction

(whether sane or insane), or

- not under treatment by a licensed physician or surgeon, or

- if you are claiming benefits that are payable under the Employment Insurance Act,

Canada (i.e. Paternity or Maternity Benefits), or

- if you become disabled during a strike, lockout, layoff or leave of absence, no

benefits are payable for the duration of the strike, lockout, vacation, layoff or

leave of absence, however, if still totally disabled on the scheduled date of active,

full-time work, you will become eligible for short term disability benefit

payments:

• On your scheduled date of retum to work, provided the waiting period

before payment has expired and if your benefit has remained in force.

- as a result of alcohol or dmg abuse (unless you were already getting regular and

personal medical supervision, treatment and counselling from· a licensed medical

doctor, rehabilitation center or a provincially designated institution that's pre

approved by the Company) or

- any period of disability during a time when you're an inmate in a prison or

correctional institution, or

- if you're not receiving regular and personal medical supervision and treatment

(that is satisfactory to the Company and/or their agents) by a physician or surgeon

who is duly licensed to practice medicine, or

- time off to stay at home with a sick family member, or

- time off work as a result of cosmetic surgery, unless such surgery is attributable to

illness or injury, or

- is not entitled due to being outside of Canada, or

-43-- has not provided proof of disability satisfactory to the company and/or their

agents, or

- as a result of participation in the armed services or as a result of war or civil

disorder.

occupational or non-occupational illness or InJUry covered by Worker's

Compensation or other disability plans

- maternity

The Company reserves the right to revert to the E.I. plan at any time.

Layoff Clause

(a) The payment of benefits can only cease on the date oflayoff or separation when the

disability started within the two months preceding this date, and that notice oflayoff

or separation was given prior to the beginning of the disability. In all other

situations relating to layoff or separation, benefits must be paid for the lesser of the

duration of the disability or 15 weeks.

(b) Full benefits are reinstated immediately on return to active employment in the case

of a relapse.

(c) Full benefits are reinstated immediately on return to active employment in the case

of a new disability.

3. Group Insurance and Pension

The Company also provides a number of benefit plans through insurance carriers for the

protection of employees. Enrolment in these plans, as set forth below, is a condition of

employment with the Company:

(a) Life insurance with accidental death and dismemberment clauses;

(b) Dependent life insurance;

-44-(c) Long term disability insurance;

(d) Extended Health Care Plan;

(e) Dental Care Plan;

(f) Contributory Pension Plan.

Employee contributions toward the premium costs of obtaining and maintaining the plans of

insurance as outlined above shall be deducted from an employee's pay by way of payroll

deduction. The Company agrees to pay the same percentage of the premium costs and

maintain the same level of coverage in respect of the above mentioned staff in all of its other

Canadian operations save and except foremen, persons above the rank of foreman, office and

sales staff, persons employed on a regular basis for twenty-four (24) hours a week or less.

Should an employee's classification change with the resulting change in wage levels which

affects the amount of insurance coverage applicable to any employee and results in a change

in the amount of any premium, the adjustment in payroll deduction will be made on the date

of the change, provided he is actively at work on that day. Should an employee be away

from work on the adjustment date, his insurance will be adjusted upon his return to active

work on a full-time basis.

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4. Plant Closure

In the event of either:

I. a complete plant closure and discontinuance of all bargaining unit work at the

Company's 50 Kenview Blvd. facility (the "Closure"), or

2. the relocation of the Company's 50 Ken view Blvd, facility to a location one

hundred (I 00) kilometres or more from it's current location (the "Relocation"),

all full-time bargaining unit members with II or more years of consecutive service as of the

date of the Closure or Relocation will be eligible for enhanced severance payments equal to

one (I) week of regular base pay per year of completed service in excess of ten (I 0) years of

service to a maximum of fifteen (15) weeks of enhanced severance payments. For clarity,

enhanced severance payments are additional to a bargaining unit members' entitlement to

termination and severance pay, if any, payable under the Ontario Emplovrnent Standards

Act, 2007. By way of clarity, if an employee is terminated and then rehired, the consecutive

years of service would restart at zero.

(End of Main Body of CBA)

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Gesco Limited Partnership,


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NATIONAL AUTOMOBILE, AEROSPACE TRANSPORTATION AND GENERAL WORKERS

UNION OF CANADA (CAW) LOCAL 462


LETTER OF UNDERSTANDING

For the contract effective January 1, 2008, and expiring the 31st day of December, 2010, it is agreed that the employee Bennett is to be paid at the following rates.

EFFECTIVE EFFECTIVE EFFECTIVE

Jan. 1.2008 Jan. 1,2009 Jan. I, 2010

Bennett 18.53 19.13 19.73

The foregoing is agreed to this 12th day of December 2007; by:

UNION

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PROFIT SHARING

For the contract effective January 1, 2008 and expiring December 31, 2010

employees within the bargaining unit will be included in the Gesco Profit sharing Plan on the

same basis as all other Toronto branch employees including qualifications.

The foregoing is agreed to this 12th day of December 2008; by

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SOCIAL JUSTICE FUND

The Company shall contribute one (1) cent per straight time hour worked by all employees to the CAW Social Justice Fund. Said contributions shaH be sent to the CAW National office on an annual basis along with the form supplied by the Union. The Company wiii meet this commitment with an annual lump sum payment of $1,000 by December 1st of each year.


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PAID EDUCATIONAL LEAVE (PEL) Company agrees to pay $2000 per year to the National Union into the PEL fund in a lump sum

by each December 1" for the purpose of providing paid education leave. Such paid education

leave will be for the purpose of upgrading the employee skills in all aspects of trade union

functions. Such monies to be paid into a fund established by the National Union, CAW,

effective from date of ratification, and sent by the company to the following address: CAW

Paid Education Leave Program, CAW-Canada, 205 Placer Court, Toronto, ON M2H 3H9.

The company further agrees that members of the bargaining unit, selected by the Union to

attend such courses, will be granted a leave of absence without pay for class time, plus travel

time where necessary. Employees on said leave of absence will continue to accrue seniority

and benefits during such leave.

ON

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Gesco Limited Partnership (the "Company"), -and-


UNION OF CANADA (CAW) LOCAL 462 (the Union")


TEMPORARYEMFLOYEES

The parties acknowledge that the use of temporary employees by the Company will be a necessity from time to time. The parties also acknowledge that the intent of using temporary employees is not to prevent the hiring of bargaining unit employees or avoid the seniority provisions as contemplated in Article 4.09 of the Collective Agreement. To further clarifY the use of temporary employees the parties agree to the following:

a) Temporary employees shall be excluded from the bargaining unit and have no rights under the Collective Agreement.

b) Temporary employees may be utilized for short term peaks in business, and/or as a one for one replacement in the absence of bargaining unit personnel, and/or for special projects for a short duration and/or for any other reason as agreed to between the Company and the Union.

c) Any temporary employee working at the Company for more than 90 working days (except those on a one for one replacement as noted in item 2 above) shall be considered as a seniority employee if the temporary employee successfully passes the Employers Aptitude & Equipment Testing, only then can he become part of the bargaining unit unless previously agreed to between the Company and the Union. Seniority will start on the day hired; no retro pay will be paid.

d) Temporary employees shall not operate any lift truck equipment.

e) The Chief Steward shall be notified of the use of all temporary employees including the job performed at the beginning of each day, but not as they are reassigned, and the employee they are covering if applicable.

f) The company will pay $1200 per year by December I'' of each year to CAW Local 462 Gesco LP Education Fund, to the same address as the monthly union dues.

The foregoing is agreed to thi() day of December, 2007; by

For The mp '(!__ For

~~~

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Gesco Limited Partnership, . (hereinafterreferred to as the "Company")

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SUMMER STUDENTS

THE PARTIES HAVE AGREED TO THE FOLLOWING:

The Union and the Company jointly agree that ARTICLE II, section 2.01(n) be enhanced to benefit all parties.

a) "Students" shall mean those persons employed during the school vacation period from May 1st to Labour Day. Students can replace 12% of the fulltime "seniority employees" at 50 Kenview Blvd. for vacation coverage, plus the percentage of sick days for the previous year, as well as, a replacement for those employees off on S.T.D., L.T.D., or W.S.I.B.

b) Should the business need change during the period above and additional students are required, the Companiwill meet the Union to discuss the nature of the change and the quantity of additional students required.

c) Once Students received the appropriate Safety Certification Training, they will be allowed to operate all power lift equipment.

d) Each student is permitted to have up to 80 hours of on the job training during the months of March and April.

e) During March and April, students are not to be used as on call fill in for workload peaks or to replace absent full-time employees.

f) The number of students shall not exceed 20% more than the number of full-time employees allowed off on vacation at the same time, added to the total Full-Time Equivalent (PTE) absent employees based on the prior summer's (May to August) experience as calculated in b) above. The calculation of the prior summers PTE absences will be rounded up or down to the nearest full person.

g) Students will be considered junior in seniority to union members for any preferred work.

h) Students will pay the appropriate Union dues as per Article 4.02 but not the initiation fee. Students shall not be covered by this Collective Agreement.

i) This Letter of Agreement shall be in effect as per Article XXII section 22.01 of the Collective Agreement.

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SMOKING CESSATION

For the contract effective January I, 2008 and expiring December 31, 2010

The Company shall reimburse an employee upon receipt of a legitimate smoking cessation program or aid, to a maximum payment of $200.00 during the duration of his/her employment with the Company. Employees become eligible after six months of employment.


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EARLY RETIREMENT BENEFIT

For the contract effective January 1, 2007 and expiring December 31, 2010

The Company has agreed to permit qualifYing employees, at their option, to stay on our Extended Medical Health (excluding Out of Country coverage) and Dental plans, with the Company paying 50% of the premiums and the employee paying 50% of the premiums, up to and including age 64. In order to qualifY, employees must have at least 30 years of service and the combination of their age and years of service equal to a minimum number of 85.


:/

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ATTENDANCE POLICY

APPENDIX I

The company, in consultation with the union has developed a program which makes allowances for legitimate absences, while discouraging unnecessary absences.

PART I-EXCUSED ABSENCES

(A) SICK ABSENCES

a) Associates are allowed six (6) excused sick days each calendar year which do not accrue attendance points.

b) For the absence to be considered excused, the Associate must notify the company at least one hour prior to the beginning of the scheduled shift. However, Associates cannot achieve perfect attendance iri any month in which an excused or leave of absence occurs.

c) Associates are entitled to sick days after having. completed their probationary period.

d) The six (6) excused sick days will be pro-rated by the percent of the year that the Associate has worked. However, bona fide Workers' Compensation leaves will be excluded from pro-rating. If an Associate is hired in July for example, or has been off on leave, they will only have worked half of the year. Therefore, the Associate would be entitled to only three (3) sick days that year

(one day per two months). To understand how many days an Associate is entitled to based on the month of hire, please refer to the following table.

Month Of Hire Sick Absences January/February 6 March/ April 5 May/June 4 July/August 3 September/October 2 November/December 1

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ATTENDANCE POLICY

APPENDIX!

(B) EMERGENCY OTHER DAYS

a) In addition to the above, three (3) days may be taken, without pay, at half or whole day increments, for the purpose of medical treatment or family support for yourself or a family member.

b) Associates are required to give at least forty-eight ( 48) hours notice except in emergency situations and provide verification regarding the absence.

c) If the Associate works at least half of the schedule shift, they will only be charged for one-half (112) day of three day allotment.

d) As is the case with Sick days, Excused Other days are pro-rated based on the percent of the year that the Associate has worked.

e) Associates are entitled to Excused Other days after they have completed their probationary period.

(C) PERSONAL LEAVE OF ABSENCE

a) A personal leave of absence is granted under provisions of the collective agreement. An Associate's attendance record will be charged with one (1) absence for a personal leave of absence.

b) Leave of Absence for union business is not charged against an Associate's record.

c) If an Associate has no remaining excused sick days, their attendance record will be charged for an unexcused absence (1 0 points).

(D) WORKERS' COMPENSATION LEAVE

Absence due to bona fide Workers' Compensation claims in which it is determined by the Workers' Compensation Board of Ontario that the Associate cannot perform their job or any other modified work, will not cause the accrual of attendance points or count as a sick day. The consecutive hour's clock will stop for Associates who are off on WSIB benefits and resume counting towards 160 or 320 hours when they return to work.

(E) SHORT TERM DISABILITY LEAVE

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ATTENDANCE POLICY

APPENDIX!

Absence due to bona fide non-work related illness/injury, compensated by the company sponsored Short Term Disability Plan will not cause the accrual of attendance points or count as a sick day. Associates not eligible for Short Term Disability benefits, but who are in receipt of sick benefits under Unemployment Insurance, will not accrue attendance points.

(F) JURY/BEREAVEMENT LEAVE

a) Absence to serve on a jury or when summoned as a witness will not cause the accrual of attendance points.

b) Absence because of bereavement, as outlined in the collective agreement will not cause the accrual of attendance points.

PART 2- UNEXCUSED ABSENCES

(A) Absences in excess of the above six (6) sick days and three excused other days, regardless of the reason, are considered unexcused.

(B) Absences which are reported at least one hour prior to the beginning of the shift will be charged as one of the six ( 6) sick days and are considered excused. However, if an Associate has no remaining sick days, ten (1 0) points will be charged to their attendance record and the absence will be considered unexcused.

(C) Absences which are not reported at least one hour prior to the beginning of the shift, but are reported no later than the end of the scheduled shift are unexcused and will be charged to an Associate's attendance record at fifteen (15) points and (1) sick day.

(D) If an Associate does not have any sick days remaining, their attendance record will be charged an additional ten (1 0) points for the absence.

(E) Multiple day absences which are not approved (as detailed in the above categories) are considered unexcused for each day of absence. Unexcused absences of greater than three (3) continuous days will be cause for termination. Multiple day unexcused absences will be charged at 20 points.

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ATTENDANCE POLICY

APPENDIX!

PART 3- UNREPORTED ABSENCES

If an Associate does not notifY the company that they will be absent, by the end of their scheduled shift, their absence will be considered unreported and their record will be charged thirty (30) points and one of the six (6) sick days.

PART 4- TARDY

(A) If an Associate reports to work within thirty (30) minutes after the start of their scheduled starting time (whether they notifY the company or not), they will be permitted to work and their attendance record will be charged five (5) points.

(B) If an Associate reports to work more than thirty (30) minutes after but within two (2) hours of their schedule starting time, and notified the company, they will be permitted to work. The Associate's attendance record will be charged ten (10) points.

a) If the company chooses to offer a shift change and the Associate agrees to complete their scheduled number of hours that day, no points will be applied. If there is insufficient time to complete the shift that day due to the shift ending and the warehouse being closed, the Associate must make up the hours on the following shift.

(C) If an Associate reports to work more than two (2) hours after the start of their shift, they will not be allowed to work and their record will be charged within fifteen (15) points and one of the sick days.

a) If the company chooses to offer a shift change and the Associate agrees to complete their scheduled number of hours that day, no loss of sick day will occur (however the 15 points will still be applied). If there is insufficient time to complete the shift that day due to the shift ending and the warehouse being closed, the Associate must make up the hours on the following shift.

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ATTENDANCE POLICY

APPENDIX!

(D) Not clocking in or out at the start or end of the shift will not cause the accrual of attendance points if in fact it is verified by other means that the employee was in fact not tardy. It is understood that waiving penalties for a clock violation is intended for occasional lapses. It is understood that this language will not apply to those who consistently do not clock in or out. If, after investigation, the employee was in fact tardy, then five (5) points will apply.

PART 5- LEAVING EARLY

(A) If an Associate leaves work for any reason before the end of the shift (excepting prearranged emergency other days), unless requested by the company, their attendance record will be charged as follows:

• five ( 5) points if the Associate works at least half of the scheduled shift

• ten (1 0) points if the Associate works for less than half of the scheduled shift

(B) If the Associate becomes ill during a shift, they may leave early without penalty with the use of any unused Sick Days in full or half day increments. If the Associate encounters a situation meeting the requirements of an Emergency Other day, they may use any unused Emergency Other Days in full or half day increments, without penalty.

PART 6- PERFECT ATTENDANCE COMPUTATION

(A) The company recognizes that it is important to reward those Associates, who by their attendance, contribute fully to the efforts of the team.

(B) Perfect attendance is defined as working the complete shift on all the days scheduled. Company compensated absences such as vacations, holidays, bereavement leaves and jury duty will not count against perfect attendance.

(C) At the end of each calendar year, an Associate's attendance record will be evaluated to determine their entitlement for the Perfect Attendance Bonus and receive $300 for Perfect Attendance and $150 for an employee who has only one absence.

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ATTENDANCE POLICY

APPENDIX!

(D) Associates may use their three (3) excused other days and still achieve perfect attendance.

(E) If an associate retires, their perfect attendance award will be pro-rated per the excused absence section. With perfect attendance for a full year, Associates receive not only their maximum wages for the year but also a $300 perfect attendance bonus.

PART 7- EARNING BACK DEMERIT POINTS

(A) In order to give credit to an Associate working overtime when required and include Associates who work on an irregular basis, one month of perfect attendance is calculated as 160 consecutive working hours.

(B) After completion of 320 consecutive hours of perfect attendance, twenty (20) credits will be awarded and ten (1 0) credits will continue to be awarded each 160 consecutive hours worked as long as perfect attendance is maintained.

(C) Once broken, Associates can earn credits again as soon as they have 320 consecutive hours of perfect attendance.

PART 8- POINT SYSTEM COMPUTATION

Effective January 1, 2005 attendance points will be computed based on your absences or tardiness. The only way points will come off your record is through perfect attendance, as described above.

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ATTENDANCE POLICY

APPENDIX!

POINT REVIEW

OPOINTS

(A) 3 Emergency Other days with 48 honr advance notice for medical treatment if an emergency we need one honrs notice prior to start of the shift.

(B) 6 Sick absences reported at least one hour before the start of shift (C) Leave due to job-related injuries (D) Days off for union business (E) Disciplinary lay-offs (F) Court ordered appearance (G) Company compensated days such as bereavement leave, jury duty, vacations,

holidays (H) Short Term Disability

5 POINTS

(I) Tardiness (up to 30 minutes)/Not clocking in or out (J) Leaving early when having worked at least half of the shift

tO POINTS

(K) Absences in excess of the six sick absences in which the Associate notifies the company at least one hour in advance

{L) Leaving early without working at least half of the shift (M) Tardiness (more than 30 minutes and less than 2 honrs) in which the Associate

notifies the company that they will be late.

15POINTS

(N) Absences which are not reported at least one hour prior to the start of the shift, but are reported not later than the end of the shift

(0) Tardiness in which the Associate reports to work more than 2 honrs after the start of the shift

30POINTS

(P) Absence without calling in before the end of the shift

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ATTENDANCE POLICY

APPENDIX!

PART 9 -PROGRESSIVE DISCIPLINE

The attendance program is designed to accommodate reasonable, uncontrollable absences. However, as excessive absences are a burden to the company and to fellow Associates, disciplinary action will be enforced on the following basis:

Probationary Associates

1'1 Step- 15 points: Verbal Warning 2"d Step 25 points: Final Written Warning 3'd Step 40 points: Three Day Suspension 4th Step 60 points: Termination of Employment

Part Time and Full Time Associates

1st Step 2nd Step 3rd Step 4th Step

25 points: 40 points: 60 points: 80 points:

Verbal Warning Final Written Warning Three Day Suspension Termination of Employment

All points will be issued no later than a week following the occurrences and the Associate will be notified. Associate attendance points will be available on a monthly basis. Failure to the company to post current point levels does not invalidate the point system.

Effective Date

This policy is effective January 1, 2008. It was the company's intent to develop this policy in the spirit of partnership with bargaining unit Associates. This policy however does not constitute a contractual agreement. In the event the company finds any part of the policy unfeasible or unfair, it reserves the right to modifY this policy with proper notice to affected Associate's.

JAN 1 COLLECTIVE AGREEMENT BETWEEN · 2.010) 2.01(1

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