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AGREEMENT entered into as of the 5th day of January 2017

BY AND BETWEEN:

NEFAB INC. Peterborough, Ontario (hereinafter referred to as the “Company”)

OF THE FIRST PART

And

THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS

Through its Local Lodge 905, (hereinafter referred to as the “Union”)

OF THE SECOND PART

ARTICLE I

RECOGNITION AND COVERAGE

1.01 The purpose of this Agreement is to establish and promote a harmonious relationship between the Company and its employees and to provide machinery for the prompt disposition of grievances, and to establish the wages, hours of work and other terms and conditions of employment for all employees who are subject to the provisions of this Agreement.

1.02 The Company recognizes the Union as the sole collective bargaining agent with respect to all matters arising under this Agreement for all of the Company’s employees in Peterborough, Ontario, save and except supervisor’s, persons above the rank of supervisor, office staff, buyers, production planner and sales staff.

1.03 The term “employee” or “employees” as used in the Agreement shall mean only those employees who are included in the bargaining unit as described above unless the context otherwise provides. The masculine pronoun shall include the feminine pronoun where the context so requires.

1.04 Work normally and exclusively performed by members of the bargaining unit will not be performed by employees not in the bargaining unit except for circumstances involving the following;

a) For the instruction of employees; b) When regular employees possessing the requisite skill are not

immediately available on-site to perform the work required; c) Where the work is performed by a student; d) Testing, prototyping, establishing/reviewing standards, process

improvements, specialty maintenance work.

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ARTICLE II

RELATIONSHIP

2.01 Company and the Union agree that there will be no intimidation, discrimination, interference, restraint or coercion exercised or practiced by either of them or by any of their representatives or members because of an employee’s membership or non-membership in the Union.

2.02 The Company, the Union, and its employees agree that they shall abide

by all provisions of the Ontario Human Rights Code and that there shall be no discrimination on the basis of race, creed, colour, nationality, ancestry, age, disability, family status, sexual orientation, sex, or place of origin as defined therein.

2.03 The Union agrees that there will not be any Union activities or business

conducted on the premises of the Company, except as permitted by this Agreement.

ARTICLE III

MANAGEMENT FUNCTIONS

3.01 The Union acknowledges and recognizes that all matters concerning the management of the Company’s operations and the direction of the working forces are fixed exclusively with the Company except as specifically restricted by the express provisions of this Agreement. Without limiting the generality of the foregoing, the Union acknowledges that it is the exclusive function of the Management to efficiently operate its plants, and in the connection to:

a) Maintain order, discipline and efficiency.

b) Make, alter and enforce reasonable rules and regulations to be

observed by the employees.

c) Hire, assign work, discharge, transfer, classify, promote, demote, layoff, recall or discipline employees for just cause.

d) Determine the nature and kind of business conducted by the

Company, equipment to be used, the methods and techniques of work, the content of jobs, the scheduling of jobs, the scheduling of employees including the scheduling of shifts and overtime, the number of employees to be employed, the extension, limitation, curtailment or cessation of operations or any part thereof and to determine and exercise all other functions and prerogatives which shall remain solely with the Company except as specifically limited by the express provisions of this Agreement.

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e) Establish and administer tests, non-medical in nature, for the purpose

of assisting the Company in determining an employee’s qualification and conducting work studies for the purpose of assisting in the determination of performance standards to be met by employees. Medical tests may be conducted with employee consent, where the employer demonstrates necessity. I.e. functional abilities testing, hearing tests etc. In the event that consent is withheld, the Company reserves the right to make decisions based on information on hand and available.

3.02 The Company agrees that such rights shall be exercised in a manner

consistent with the express provisions of this Agreement. 3.03 The Company agrees to post a copy of its official rules and regulations

concerning management and safety and any subsequent alterations or amendments and provide a copy to the Union.

ARTICLE IV

STRIKES AND LOCKOUTS 4.01 The Company agrees that there will be no lockout of its employees and the

Union agrees that there will be no strike, slowdown, sit-down, stoppage of work, or any other action resulting in the interference of production during the term of this Agreement. An individual employee who violates this clause will be subject to disciplinary action.

ARTICLE V

UNION REPRESENTATION 5.01 The Union may appoint or otherwise select employees to serve as

stewards and chief stewards whose duties shall be to assist employees in presenting their grievances to the designated representatives of the Company in accordance with the Grievance Procedure.

5.02 The Company agrees to recognize five (5) employees selected by the

Union to act as stewards and members of the Union grievance committee for the purpose of advising and assisting employees with complaints or grievances that may arise. To ensure the minimum of interference with the Company’s production, it is understood that one steward only will attend Company/Union meetings with regard to the grievance procedure and these members are to be selected by the Union. In special circumstances the Union may request a second Union steward to attend. Such requests will be made to the Plant Manager and will not be unreasonably withheld.

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5.03 The Union shall keep the Company notified in writing of the names of its authorized stewards including the chief steward and other officers and the respective effective dates of their appointment, within 48 hours of the appointment.

5.04 The Union acknowledges that they have their regular duties to perform on

behalf of the Company and that such persons will first receive clearance from their supervisor before they leave their regular duties. They shall state their destination to their supervisor together with the reasons and shall report again to their supervisor at the time of their return to work. In the processing of grievances, there shall be a minimum of interference with the Company’s operations. Only one Union representative will process a grievance and the Company reserves the right to limit such time if it deems the time so taken to be excessive.

5.05 The Union may appoint or select a minimum of two (2) employees to serve

on the Joint Health and Safety Committee, which will operate in accordance with the Occupational Health and Safety Act of Ontario and the regulations therefore. The parties recognize their obligation to provide a safe and healthful working environment for employees. The parties agree to use their best efforts jointly to achieve this objective. The Company and the Union will comply in a timely manner with all concerns pertaining to Occupational Health and Safety.

5.06 New employees when hired will be introduced to a Union Steward of the employee’s section by the supervisor or his designate and details of his hiring shall be supplied to the Union, within twenty-four (24) hours from starting.

5.07 The Company will absorb the off-job losses of time incurred by bargaining

unit members while processing grievances or attending joint Company/Union meetings, in house, after clearance with supervisor, during regular working hours. Company/Union meetings, in house, which extend beyond regular working hours, will be paid at the employee’s regular hourly rate whether during regular working hours or if they extend beyond regular working hours. If an employee is receiving overtime premium prior to the commencement of the grievance or Union/Company meeting, he will receive overtime premium for the time spent. The foregoing does not apply when a steward is off shift. If he chooses to report to work to participate as a second in Company/Union meetings he will not be paid. If the Company specifically requests the off shift steward to attend he will be paid as per our pay policy.

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5.08 a) The Company will make payment, on behalf of the Union, for lost time of Union representatives when conducting Union business away from the plant, provided the Company has received prior notification, detailing the hours to be paid, from the Union Recording Secretary and countersigned by the Union President. This leave shall be limited to one employee at a time, not to exceed ten (10) working days per annum. The Union will provide the Company with a minimum of two (2) weeks notice. The Company will bill the Union and the Union will reimburse the Company all wages paid plus an additional 8% to cover associated costs within thirty (30) days.

At the Company’s sole discretion, more employees may be granted leave should business conditions allow.

b) On request of the Local Lodge, the Company will grant leave of absence to not more than two (2) officials (provided they are not on the same shift) of the Local Lodge or their delegates at any one time, for the transaction of Union business and attending Trade Union Conventions, providing the leave of absence for any period is subject to Company ability to release individuals from productive duties; and if not, the Company may require the names of alternative individuals. This leave is not to exceed ten (10) working days per annum.

Notwithstanding the foregoing, the number of officials or their delegates may exceed the aforementioned allotment where special circumstances warrant such a request providing the leave of absence for any period is subject to Company ability to release individuals from productive duties. Leave of absences may be extended on a case by case basis with mutual Agreement between the Company and the Union.

Payment and notice requirements by the Union for such leaves shall be as per 5.08 a).

5.09 Bulletin Boards

The Union shall have the privilege of posting its own notices at locations specified for Union business on the Company premises provided such notices have first been approved by a Senior Manager or his designate. The Company shall supply bulletin boards.

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ARTICLE VI

GRIEVANCE PROCEDURE 6.01 It is the mutual desire of the parties hereto that valid complaints of

employees should be adjusted as quickly as possible and it is understood that an employee has no grievance until he has first given his supervisor an opportunity of considering his complaint. If an employee has a complaint, he shall discuss it with his supervisor within three (3) working days after the circumstances giving rise to the complaint have come to the employee’s attention, or he should reasonably have knowledge of it; except an error relating to the seniority list which may be dealt with as a grievance within ten (10) working days of the posting of the seniority list. Failing settlement, it may then be taken up as a grievance within three (3) working days following receipt of the supervisor’s decision, as follows:

STEP NO. 1

The employee, who may request the assistance of the steward, will present his written grievance in quadruplicate, to his supervisor. The written grievance shall contain the nature of the grievance, identity of employee or employees who claim to be aggrieved, and the remedy sought. In addition, the Griever will state to the best of his ability the act or acts grieved, date of occurrence, and the provision(s) of the Collective Agreement that has allegedly been violated. Failing a settlement, the supervisor shall deliver his decision in writing within three (3) working days following the presentation of the grievance to him. Failing settlement:

STEP NO. 2 Within three (3) working days after the decision is given under Step No. 1, the grievance may be submitted in writing by the employee, who may request the assistance of the steward to the Plant Manager or designate. The Plant Manager or designate shall deliver his decision in writing within five (5) working days after receiving the written grievance. Failing settlement:

STEP NO. 3

Within five (5) working days after the decision is given under Step No. 2, the Griever, who may request the assistance of the steward, may submit the grievance in writing to the General Manager or his designate of the Company. A meeting will then be held between such representative of management and the steward and an accredited representative of the Union shall be present at the request of either the Company or the Union. The decision of the Company at this Step shall be delivered in writing within five (5) working days following such meeting.

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POLICY GRIEVANCE

If the Union has a policy complaint they shall discuss it with the Plant Manager within five (5) working days after the circumstances giving rise to the complaint. A policy grievance is properly filed by either party where the subject matter of the grievance concerns the bargaining unit as a whole or raises an issue of collective Agreement interpretation which is of general application at the time of the filing of the grievance.

Policy grievances shall not be used to bypass the individual employee grievance process where the individual employee himself could file such grievance but chooses not to.

Failing verbal resolution with the Plant Manager, the time limits set out in Article 6.01 for submitting and replying to grievances shall be applicable to Policy Grievances which shall be initially filed directly with the Plant Manager (or Steward) at Step No. 2 of the Grievance Procedure. All provisions outlined in Step 2 with respect to the provision of particulars shall be applicable to policy grievances filed.

6.02 Failing settlement under the foregoing procedure of any difference

between the parties arising from the interpretation, application, administration or alleged violation of this Agreement, including any question as to whether a matter is arbitral, such difference or question may be submitted to arbitration as hereinafter provided. If no written request for arbitration is received within ten (10) days after the decision under Step No. 3 is given, it shall be deemed to have been settled.

6.03 All Agreements reached under the Grievance Procedure on behalf of the

Company, the Union or any employee or employees, will be final and binding upon the Company, the Union and the employee or employees concerned.

6.04 Saturdays, Sundays, Plant Holidays and Vacation period will not be

counted in determining the time within which any action is to be taken or completed under the provisions of Articles VI, VII and VIII.

6.05 Should any grievance not be submitted within the time limits specified

under the Grievance Procedure, it shall be considered to have been settled based on the Company’s last response, unless extended by mutual Agreement. A Company grievance will be deemed settled in the same manner based on the Union’s last response.

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6.06 Any time limits specified under the provision of Articles VI, VII and VIII may be extended by written mutual Agreement between the parties of this Agreement.

6.07 It is confirmed that the suspension of any employee by the Company is a

matter which is subject to grievance and arbitration procedure.

ARTICLE VII ARBITRATION

7.01 Either party to this Agreement may submit any dispute to arbitration by

notifying the other party in writing of its desire to do so. The parties shall meet and attempt to agree upon a single arbitrator and if unsuccessful, either party may request the appointment of an arbitrator by the Minister of Labour.

7.02 No matter may be submitted to arbitration which has not been properly carried through all previous Steps of the Grievance Procedure.

7.03 The Arbitrator shall not be authorized to make any decision inconsistent

with the provisions of this Agreement, nor to alter, modify or amend any part of this Agreement.

7.04 The proceeding of the Arbitrator will be expedited by the parties hereto

and the decision of the Arbitrator will be final and binding upon the parties hereto and the employees concerned.

7.05 Each of the parties hereto will jointly bear the expenses of the Arbitrator

and each party will pay their own expenses.

7.06 The decision of the Arbitrator shall be final and binding on the Company, the Union and the employee or employees concerned.

7.07 Time Limits in this article may be extended by mutual written Agreement between the Company and the Union.

7.08 NO person shall be selected as an Arbitrator who has been directly involved in attempts to settle the grievance unless the parties agree otherwise.

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ARTICLE VIII DISCIPLINE

With reasonable promptitude, the Company shall notify the Union in writing, of any suspension or discharge outlining the reason for same.

No employee, after completion of his probationary period, shall be disciplined, suspended or discharged without just cause. Such discipline, suspension or discharge may be the subject of a grievance. Any employee who is suspended or discharged shall have the opportunity of conferring with his steward in plant offices.

8.01 An employee with seniority, who feels that he has been unjustly disciplined, short of discharge, may present a grievance at STEP NO. 1 of the Grievance Procedure. An employee who feels that he has been unjustly discharged may present a grievance at STEP NO. 3 of the Grievance Procedure, provided that in either case the right to grieve shall be deemed to be waived if a grievance has not been presented within three (3) working days after the suspension or discharge.

8.02 Failing settlement by the said Grievance Procedure, a grievance regarding

suspension or discharge may be submitted to arbitration as provided by Article VII hereof and the Arbitrator shall make such settlement as deemed just.

8.03 Disciplinary actions will be considered inactive provided there has been no

further disciplinary actions within the following timeframes: First Written Warning – 6 months of active service Second or subsequent Written Warnings – 12 months of active service Suspension – 12 months of active service

8.04 Suspensions not to exceed two (2) days in duration.

8.05 When a written warning, suspension or discharge notice is issued to an employee, a copy will be issued to the Union on the same day.

8.06 An employee who is to be disciplined or being investigated for discipline shall have his Union representative present at the meeting if he so desires. At the final step of the grievance procedure, a full time member of the Union shall be present upon the request of either party.

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ARTICLE IX SENIORITY

9.01 The principle of seniority based on length of continuous service with the

Company will be recognized as hereinafter provided. An employee will be considered on probation and will not be subject to the seniority provisions of the Agreement until after he has completed one hundred and thirty (130) regular worked day’s employment with the Company. Upon completion of such probationary period, the employee’s name will be placed on the seniority list with seniority dating from the date the employee was hired by the Company.

9.02 It is understood that the layoff, discipline, suspension or discharge of a

probationary employee will not be the subject of a grievance. 9.03 Seniority lists showing the name of each employee designated by labour

POOL will be posted on the bulletin board within thirty (30) days following the execution of this Agreement and every six (6) months thereafter.

9.04 Promotions or transfers to positions outside the Union are not governed by

the provisions of this Agreement. During the first twelve (12) months the employee is employed outside the bargaining unit he shall maintain his seniority as of the date of promotion or transfer. During this period he shall have the right to return to his former position in the Union.

RESOURCE POOLS

9.05 The number of machine centres may be adjusted up or down during the

term of this Agreement based on 5 and10 point machine centres being added, deleted, amalgamated or considered as one machine centre per the points chart. The Company will notify the Union in writing of proposed changes.

Reductions due to amalgamations of 5 and 10 point machine centres (where one employee operates two 5and10 point machine centres at the same time) will be limited to two pairs of 5and10 point machine centres during the life of this Agreement. If more than two pairs of 5and10 point machine centres are to be amalgamated, mutual Agreement between the Company and the Union is necessary.

If an employee replaces a Resource POOL 1 employee and performs the significant duties of the Resource POOL 1 position for four (4) hours or more, he will be paid the Resource POOL 1 rate.

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c) Company approved external certification training is included in the

Skills Matrix for areas that the Company does not have internal expertise such as DZ truck license, and overhead crane certification.

Employees are required to train fellow employees in skills that they are qualified for if requested by the Company, with the exception of external certification training.

d) To maintain points on the Skills Matrix, the employee must continue to

be able to meet the quality, safety and production standards as set by management. If an employee is not meeting the standards, the Company will meet with the employee and a Union representative to identify the specific standards not being met and the employee will be given the opportunity to correct any identified shortcomings. In the event that sufficient standards are still not being met, skill points will be removed and if this results in the employee no longer having the skill points required for their current Direct Labour Pool Level they will be reclassified to a lower Direct Labour Pool Level. Prior to the demotion of an employee from a Direct Labour Pool Level, that employee will be given the opportunity to attain points in the Direct Labour Pool Level that can be performed.

If the employee’s failure to meet the standards is due to a physical or

mental disability, the Company will meet with the employee and a Union representative to identify the specific standards not being met and possible accommodations for the employee. An employee with a bona fide physical or mental disability (as defined in Human Rights legislation) will qualify for accommodation as outlined in Human Rights legislation.

e) There is a mutual obligation by management and employees for job

rotation. Management will determine the job rotation required to provide flexibility in staffing and maintaining skills. Employees will rotate when requested among jobs for which they hold skill points. Job rotation will not be exercised in an unreasonable or discriminatory manner.

f) Rotation schedules will be developed based on production needs with

employees rotating through machine centres on an ongoing basis to maintain their skills.

g) Trainees must be qualified in the following skills before they can move

in to training on machine centers. Basic blue print reading Nail gun operation and cut off saw operation Tape measure use and metric/imperial conversion

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Basic raw material knowledge Basic ISO knowledge-quality policy, employee quality

responsibilities, work instructions Basic Health and Safety-WHMIS, plant evacuation, personal safety,

lockout/tag out procedure Where applicable, points attained in the foregoing are applied to the skills matrix.

h) As equipment or processes are changed or added, the Skill Points

requirements below may need to be adjusted. The Company will provide information and justification for discussion and Union Agreement to adjusting points and a process for implementation will not be unreasonably withheld.

Training and Evaluation

a) Training will be offered by the Company such that an employee may obtain a minimum of 5 points per review period (6 months).

b) Training for 1,3,5, and 10 point centers will be conducted by existing qualified operators agreed upon by supervision and the employee. If an Agreement cannot be reached, a Union Steward and the Plant Manager will resolve. Evaluation of training to award points will be done by a trained operator, Lead Hand, Supervisor for 1,3,5 point centers. Evaluation of 10 point centers to include a Union Steward and Plant Manager as well.

Trainee Level 1 Level 2 Level 3 Level 4 Resource POOL 1

Develop skill during Probation period. Advances into training on Machine Centers at end of probation period provided 15 points have been accumulated in the Skills Matrix

15 Points

2x 5 point machine centers

2x 5 point machine centers 1x 10 point machine center

2x 5 point machine centers 2x 10 point machine centers

Designated positions: Lead Hand Shipper/Receiver Maintenance Truck Driver Yard Material Handler

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Points Matrix Chart

Prep

10 Point 5 Point 3 point 1 point

Profile and Post

Forming

Printer

Panel Saw Chamfer

Pressing

10 Point 5 Point 3 point 1 point

P-Line ATL Tonguer Hand Hole Punch

S-Cell CNC Catch Plate Profile Joining

Final Inspection Collar Press Klammer

Press

Post Press

Log Pak Cell Shipping

Pallet Build

L and B Press

Solutia Cell Packing Small LandB Press

LWP Cell Banding

Base Nailing

Assembly

10 Point 5 Point 3 point 1 point

Large Skid

Assembly (includes

final inspection and

advanced drawing

interpretation

Lumber Saw

(Stromab)

Multispindle Table Saw

HD Assembly Notcher

Rivet Machine

Additional

1 Point

DZ Licence

Crane Certification

Forklift Licence

1

Center

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POSTINGS TO LABOUR POOLS

9.06 The Company recognizes its commitment to the staffing of its operations with full time employees, however, the Company and the Union recognize that due to the nature of the business the Company has the right to use temporary employees generally from temporary help agencies. The number of temporary employees on strength at any given time shall not exceed a number equal to thirty-three and a third (33.3%) percent of the full time staff employed. There may be occasions where special projects require exceeding this limit for a specified period of time, and if so, the Company will detail a request for exemption from the Union. Any such exemptions must have mutual Agreement from the Union. No temporary employees shall be employed while full time employees are on layoff, save and except for that period of time between the recall of full time employees and their actual return to work.

9.07 a) In the event of a vacancy occurring in a Resource POOL, a Resource

POOL Posting will be placed on the designated bulletin board for at least three (3) days or until filled and any employee may apply in writing to the Human Resources Department. The Company will commence the interview process within fifteen (15) working days of the vacancy being posted. The successful candidate will commence their work in the new Resource POOL within Twenty (20) working days of receiving notification of their successful bid. In the event that the Company cannot move the employee into their new Resource POOL within Twenty (20) working days, they will continue to receive their current rate of pay or the rate of the new Resource POOL, whichever is higher. In the event the posting is cancelled, the Union and all employees bidding for the posting will be notified within Ten (10) working days from the expiry of the posting.

b) Resource POOL One vacancies will be posted however the Company

will select employees based on qualifications, experience, and technical, managerial, and leadership skills established by the Company. Internal applicants with seniority will be considered first but in the event internal applicants do not meet the requirements, the Company may hire externally to fill the position and such selections will not be subject to the Grievance Procedure. Those applicants denied promotion to Resource POOL One will be informed of the deficiencies identified by the Company.

c) In order to advance to the next Direct Labour Pool Level or Pool one

(1), the employee must currently have no active disciplinary warnings or suspensions on his file. The Company shall not consider probationary employees for job postings.

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d) Upon request, should a more senior employee be unsuccessful in

bidding for a vacancy, he will be informed of the reasons indicating why and if applicable training requirements that may assist him in obtaining future postings.

e) Where an employee voluntarily relinquishes his Pool 1 Position the

Company shall reclassify him to the appropriate Direct Labour Pool. f) The successful candidate for a posting to Resource POOL One will be

assessed during the first forty (40) working days in his new Resource POOL to ensure he has the ability to do the work required and can consistently meet the normal productivity and quality standards. If he is unsuccessful he will be returned to his former Direct Labour Pool Level and the other candidates from the original posting will be reconsidered.

LAYOFFS

9.08 (a) Layoffs from Resource POOL One will be from the designated position

affected and will be at the Company’s discretion and not by seniority. With the necessary seniority, the affected employee will displace the employee with the least seniority at the appropriate Direct labour Pool Level

All Layoffs will be done by seniority from the Direct Labour Pool.

Employees on layoff who have completed their probationary period (and not lost their seniority) will be recalled in order of greatest seniority provided they have fifteen (15) points on the skills matrix

(b) The Company shall notify the Union of all layoffs prior to an employee

being notified.

(c) Laid-off employees who have completed their probationary period shall

remain on the seniority list for the lesser of: (a) a period equal to the employee’s seniority at the time of layoff or, (b) twenty-four (24) months.

(d) Employees will have up to five (5) calendar days to report to work

following registered mail confirmation of recall notification by registered mail to his address on record with the Company and will displace any junior or temporary employee recalled to the vacancy.

(e) If a probationary employee is laid off, his employment shall be reinstated, should he be rehired prior to what would have been the end

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of his probationary period. Should his original probationary period be exhausted, he is deemed terminated and should he be rehired, his first day back to work would be the first day of his probationary period.

ARTICLE X

RESOURCE POOLS and WAGE RATES 10.01 The classification and wage rates set forth in Appendix “A”, which shall

form an integral part of this Agreement, shall be in effect for the duration of this Agreement.

(a) The rates of pay for any employee shall be only those rates as shown

in Appendix A. For new hires, the Company may start the employee at any of the rates shown to recognize prior work experience. Progression will occur as per the Appendix A.

(b) The pay period will be Monday through Sunday inclusive and shall be

paid by bank deposit the Friday following the second week, subject to current Revenue Canada administrative guidelines.

(c) Any pay adjustments that are required because of overpayment or underpayment will be corrected as follows: Amount owing $75 gross or less – to be paid on the following

normal payday Amount owing over $75 gross – to be paid by Company cheque

within 48 hours of being notified of the error Overpayments to employees will be deducted on the following

normal payday 10.02 Should the need arise to establish a new Operation or Skill, not listed in

Appendix “A”, the Company will advise the Union, in writing, the new Operation or Skill , and the point value for the skills matrix. For Resource POOL One, the Company will identify the Operation or Skill and also propose a rate. The Operation or Skill, the skills points assigned, and the rate established may be the subject of negotiation between the parties within ten (10) working days. Should the parties fail to reach Agreement on the Resource POOL and Work Group to which the new Operation or Skill is assigned, the skills points assigned for the skills matrix, or the specific rate assigned for Resource POOL One Operations or Skills, the Company’s proposed classification and rate shall prevail and the issue will be the subject of the next renewal of the Collective Agreement.

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Article XI

LOSS OF SENIORITY 11.01 An employee shall lose all seniority and shall be deemed to have quit the

employ of the Company if he:

(a) Voluntarily quits the employ of the Company; (b) Is discharged for cause and the discharge is not reversed through

the Grievance Procedure;

(c) Fails to report for work, within his classification, five (5) calendar days after being notified by the Company following a layoff by registered mail to his address on record with the Company. Recalls of less than five days are optional and not subject to the foregoing.

(d) Is absent for three (3) consecutive scheduled working days without notifying the Company and/or providing satisfactory proof of illness or injury during his absence. If absence is due to other reasons, the reason must be acceptable to the Company and satisfactory proof must be provided.

(e) Is laid off for a period in excess of twenty-four (24) months; or as

per 9:08 (d).

(f) Does not return to work at the expiration of a leave of absence or uses a leave of absence for a purpose other than that for which it was granted;

(g) Is absent due to illness or disability (except absences for which

WSIB benefits are received) which absence continues for the lesser of twenty four (24) months or a period equivalent to the employee’s length of seniority at the time the illness or disability commenced provided the employee maintains eligibility for short and/or long term disability benefits. If the employee loses eligibility and such eligibility is not reinstated through appeal, and he does not return to work immediately, his seniority will cease and the employee will be terminated.

11.02 It shall be the duty of employees to notify the Company promptly of any

change in address. If an employee fails to do this, the Company will not be responsible for failure of any notice provided for under this Agreement to reach such an employee.

11.03 Copies of all recall notices will be given to the Union.

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11.04 The Company will endeavour to give six (6) months notification in the event of closure or partial closure. Notwithstanding the above, there will be no monetary compensation provided in lieu of this notification other than that which is provided under Employment Standards.

ARTICLE XII

LEAVE OF ABSENCE

12.01 The Company may grant leave of absence, without pay for a period of up to thirty (30) days.

12.02 Health Leave: Employees will have the option to opt in or opt out of using

one (1) vacation day to cover the first full sick day of the year subject to article 15.02. This option is offered for the first sick day only.

ARTICLE XIII

HOURS OF WORK AND OVERTIME 13.01 The normal work week will consist of eight (8) hours per day and forty (40)

hours per week Monday through Friday. Standard work hours are:

One Shift (Days) 7:00 AM to 3:30 PM with 30 minute unpaid lunch

Two Shifts (Days) 7:00 AM to 3:30 PM with 30 minute unpaid lunch

(Afternoons) 3:30 PM to 12:00 AM with 30 minute unpaid lunch

Three Shifts (Days) 7:00 AM to 3:00 PM with 20 minute paid lunch period.

(Afternoons) 3:00 PM to 11:00 PM with 20 minute paid lunch period. (Nights) 11:00 PM to 7:00 AM with 20 minute paid lunch period. The third (night) shift begins at 11:00 PM Sunday and finishes at

7:00 AM Friday The period from 11:00 PM Sunday to 12:00 AM is considered part of Monday’s shift and is not eligible for overtime premium or paid holiday premium. Notwithstanding the above, starting and stopping times for Resource POOL 1 employees may vary due to the nature of their work and the Union and employee(s) affected by the change will be notified at least three (3) weeks in advance if changes are required.

Breaks: For One and Two Shift operations there are two fifteen minute paid breaks. For Three Shift operations there are two ten (10) minute paid

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break periods. One break is taken during the first half of the shift and the other break is taken during the second half of the shift.

(a) The Company is currently in a Three (3) Shift operation and has

agreed to rotate day and afternoon shifts and operate a non-rotating midnight shift using volunteers on a trial basis and assigning the junior seniority employees with the required skills where there are not enough volunteers.

If this steady non rotating third shift should prove problematic in areas such as insufficient available employees with the required skills or unusual employee turnover attributable to shifts, the Company will promptly address the concerns with the Union in an attempt to find a reasonable resolution. In the event that a resolution is unattainable, the Company may implement a rotating three shift operation. If employees wish to change shifts they will complete a Shift Change Request form and submit it Human Resources. In addition, the Company will post a notice each August 1st asking employees to submit Shift Change Request forms if they wish to change shifts. Employees may not change shifts for at least six (6) months from their last shift change.

(b) For the rotating day and afternoon shifts, an allotment of five (5) Direct Labour Pool employees per shift shall be non-rotating. Pool 1 employees wishing to work straight days must have Agreement from their opposite shift Pool 1 to work straight afternoons. These positions shall be posted February 1st and August 1st each year and will be awarded in order of seniority. There must be an equivalent number of volunteers for the afternoon shift as those on non-rotating days or the allotment will be decreased to match the number of afternoon shift volunteers. The balance of the shift employees will rotate shifts every two (2) weeks. Except in an emergency, the Company will provide one (1) week’s notice of shift change. It is understood that some areas of the plant may not be involved in shift work such as where the specific work does not exist on all shifts.

13.02 It is agreed that employees are entitled to leave the plant premises during their lunch break but they must record their absence by swiping out and in.

13.03 Employees asked to work at least two (2) consecutive hours of overtime

on a regular workday will receive a paid ten (10) minute break at the end of their regular shift or at the end of the overtime, if overtime is prior to the start of their shift.

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13.04 Premium overtime, on the employee’s straight time hourly rate, shall be paid on the following basis:

(a) Authorized work performed over forty (40) hours in a week or on the

employee’s sixth (6th) day of work will be paid at time and one-half. (b) Authorized work performed over forty (40) hours in a week and

performed on the employee’s seventh (7th) day of work will be paid at double (2) time provided the employee has worked a minimum of five (5) hours or the scheduled overtime if less than five (5) hours, on sixth (6th) day preceding.

(c) Authorized work performed on a public holiday (as defined in the

Employment Standards Act and in this Agreement) will be paid at time and one-half in addition to an alternate day off work, subject to the provisions of 15.02

13.05 Overtime work will be distributed as equally as practicable among

employees with the required skills based on the most current skills matrix. Under no circumstances will employees be eligible for pay due to overtime not being distributed equally.

13.06 Overtime required at the beginning or end of a shift will be offered to

employees on that shift with the required skills, based on the current skills matrix, by the least overtime hours posted. If no one volunteers, and no volunteers are available from the incoming shift, the overtime work will be assigned to the employee with the least seniority on the shift, who has the necessary skills and the employee so assigned shall work the overtime.

13.07 For the purposes of the record of equal distribution of overtime,

employees who refuse will be deemed to have worked the overtime, except those employees who have been asked after three and one-half (3 ½) hours from the start of their regular shift. The overtime distribution records will be maintained by the supervisor and will be available for review.

13.08 For weekend overtime, the requirements will be posted by Thursday of

that week, identifying the total number of employees required and the minimum number of critical skills required. Those who wish to work the overtime will sign the posting. Overtime will then be offered to employees with the required skills who have the least overtime hours posted. Should there be a shortage of volunteers to work the overtime, the Company will assign the employees with the least seniority who have the skills required and the employees so assigned shall work the overtime. In the event unforeseen overtime is required and not identified until Friday, the Company will offer the overtime to employees with the least overtime

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hours who have the necessary skills and assign overtime if there are not enough volunteers using the process above.

13.09 The overtime distribution record shall be posted on a biweekly basis and

employees will have until the next posting to dispute if their overtime hours were incorrectly recorded.

13.10 Maintenance employees required to report on a call-in basis will be paid at

the appropriate overtime rate for hours actually worked or a minimum of four (4) hours at the appropriate overtime rate, if hours actually worked are less than four (4) hours.

13.11 If an employee reports for work at the regular scheduled time for his shift

or scheduled overtime shift, he shall be entitled to a minimum of four (4) hours work or pay at his standard hourly rate, whichever is applicable, unless previously notified by the Company not to report for work. The provision shall not apply when lack of work is due to conditions beyond the control of the Company.

13.12 Any employee, unless restricted by circumstances outside his control, who is unable to report for work must telephone his Supervisor before the start of his shift or, if his Supervisor is not personally available, the designated reporting voicemail box, informing them that he will not be able to attend.

13.13 It is agreed that employees under this Agreement may be required to work hours in excess of eight (8) hours in a day but not exceeding forty-eight (48) hours in a total week unless the employee agrees to more than forty-eight (48) hours.

13.14 The parties to this Agreement recognize that the needs of the business

may require the performance of overtime work from time to time and employees will co-operate in the performance of such work as outlined in 13.07 and 13.09.

ARTICLE XIV SPECIAL ALLOWANCES

Shift Premium 14.01 Employees whose regular assigned working hours are Afternoon Shift will

be paid a shift premium of fifty-five (55) cents per hour.

Employees whose regular assigned working hours are Night Shift will be paid a shift premium of eighty (80) cents per hour.

The foregoing off-shift premium shall not be included when computing the employee’s overtime pay. Lead Hand rates are defined in Appendix A.

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Employees who work hours before or after their regular shift are only entitled to the shift premium of their regular shift for the additional hours. For day shift employees that would mean no shift premium would be payable.

14.02 Employees required to work at a location other than Peterborough shall be subject to the following conditions:

1) Cost of travel to location and return will be paid for by the Company. 2) Overtime work will be paid as per Article 13. 3) The Company will reimburse employees all actual expenses for food, lodging, and incidentals incurred as a result of work on location. Meals on location, will be reimbursed as per Company policy 4)Truck Drivers performing delivery work are not eligible for a meal allowance.

Jury Duty 14.03 An employee who is called and serves on jury duty will be paid the

difference between jury pay and his standard hourly rate of pay for such periods of jury duty as fall within the normal working day; provided that the Company may require satisfactory evidence of such jury duty and further provided that the employee shall report for work if released four (4) hours prior to the end of his normal shift. A similar provision is allowed for employees who are a subpoenaed Crown witness. Employees appearing as plaintiffs or defendants are excluded.

Bereavement 14.04 When bereavement occurs in the family of an employee, such employee

will be paid at his regular rate (for eight hours) for consecutive days including the day the of the funeral as follows:

a) Five (5) days at the time of bereavement for employee’s immediate

family including: spouse, father, mother, foster/step parents, son, daughter, brother, sister, foster/step son, foster/step daughter, foster/step brother, foster/step sister, common-law spouse, common-law children and grandchildren. Common-law is dependent upon prior notification to Human Resources.

b) Three (3) days will be paid at regular rate for bereavement of father-in-

law and mother-in-law.

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c) One (1) day will be paid at regular rate for bereavement of grandparent, grand parents-in-law, son-in-law, daughter-in-law, sister-in-law, and brother-in-law.

14.05 A claim for bereavement allowance must be presented within two (2)

weeks of the bereavement and should an employee be requested by the Company to give satisfactory proof with respect thereto, he shall be obligated to do so in order to establish proper qualifications for payment. No payment shall be made in lieu of time off.

b) Subject to prior approval of the Company, such leaves may be

deferred to include the funeral, memorial, service or equivalent should it not take place until after the honored leave.

ARTICLE XV PLANT HOLIDAYS

15.01 Employees who meet the qualifications set forth in paragraph 15.02

hereof, will receive the following plant holidays, with pay computed at the employee’s straight time hourly rate multiplied by the employees total straight time hours in the four (4) weeks preceding the week containing the holiday, divided by twenty (20).

New Year’s Day Good Friday Victoria Day Canada Day Civic Day Labour Day Thanksgiving Day Family Day Christmas Day Boxing Day

One floater holiday

15.02 In order to qualify for plant holiday pay, an employee must work on his regular scheduled shift immediately preceding and immediately following the plant holiday, unless he is absent with permission from work on these days for authorized leave of absence, bereavement or vacation. He will not be paid plant holiday pay if he is receiving Short or Long Term Disability or Worker’s Compensation benefits for the designated holiday. This will not prevent the Company from taking into consideration legitimate lateness nor the granting of permission to leave on such days.

When two (2) or more holidays fall on consecutive work days, should an employee fail to qualify due to being absent on the scheduled working days prior to or following the holiday, such employee shall not be penalized more than one (1) day of holiday pay.

15.03 Where any of the plant holidays referred to in paragraph 15.01 above falls

on a Saturday or a Sunday and is legally proclaimed for general

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observance on some other day, such other day shall be considered the plant holiday.

15.04 The Company will consult with the Union regarding the scheduling of

Floater Days (taking in to account the production requirements) prior to posting.

ARTICLE XVI VACATIONS WITH PAY

16.01 The vacation year in which vacations must be taken is from January 1st to

December 31st.

Vacation time is based on the employee’s length of service as of July 1st of the current calendar year.

Working days are defined as eight (8) hours.

The percentage of vacation pay is calculated on the total earnings from July 1st of the prior year to June 30th of the current vacation year and does not include vacation pay paid in the prior year.

Upon termination, an employee will receive only the percentage of vacation pay he is entitled to less any vacation already paid.

Length of Active Service Vacation Time Vacation Pay Termination Prior to July 1 None 4% of earnings During first year of employment Two Months but less than one 1 day/month max 10 days 4% of earnings year as of July 1 One year of service as of July 1 10 working days 4% of earnings

5 years of service as of July 1 15 working days 6.12% of earnings 10 years of service as of July 1 20 working days 8.33% of earnings 15 years of service as of July 1 25 working days 10.64% of earnings

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Example: For the year 2016, an employee who will have completed 5 years of service prior to July 1, 2016 would be entitled to 15 working days vacation time and would receive vacation pay which would be 6.12% of his earnings from July 1, 2015 to June 30, 2016 less any vacation pay paid during that period. He would take his vacation during the period January 1, 2016 and December 31, 2016. 16.02 Employees will complete a vacation request form by the end of February

indicating their vacation preference for their first two (2) weeks of vacation. The Company will determine the number of employees that can take vacation, minimum of three (3) per shift total (the minimum will be two (2) employees for the third shift when it is operating at less than a full shift), by the number of skills required by shift and confirm vacation requests based on seniority. Those requests not granted will submit new vacation requests by the end of March which the Company will process by April 15. Those employees with more than two weeks vacation will submit vacation requests by the end of April and the Company will use the same process and confirm by May 15.

16.03 Vacations shall be taken in blocks of five working days, subject to

alternate Agreement with supervision, with the ability to take a minimum of two (2) continuous work weeks as outlined in 16.02.

16.04 The total pay of the employee as outlined in paragraph 16.01 shall include

any productivity or quality bonuses paid by the Company.

16.05 The vacation year shall be from January 1st until December 31st. Vacation

time is not cumulative and must be used by the end of the vacation year. In order to ensure that employees take their annual vacation entitlement, employees will be advised by October 1st of any unused vacation entitlement, which must be scheduled no later than October 31st to be taken prior to December 31st subject to Company changes to the Christmas Holiday schedule.

The Union will be informed of all unused vacation. Vacation pay will be paid to an employee as and when vacation time is taken on the regular payday(s) during the employee’s vacation time.

There will be no advances on vacation pay and any vacation pay owing at December 31st will be paid out in January.

16.06 Only active employees will be allowed to schedule vacation.

The employer will review upcoming scheduled vacation for employees who are on a current leave. If it is known or reasonably assumed that the employee will not be returned to work that scheduled vacation period, the

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vacation will be cancelled. Other employees will then be eligible for the vacation time as per the Collective Agreement.

ARTICLE XVII

WORKPLACE INJURIES 17.01 Employees who are injured at work and are sent to a hospital or doctor’s

office because of such injury, and are unable to return to work will be paid for the balance of their shift. Verification of medical unfitness for return to work may be required by the Company.

17.02 The Company will notify the Union of all Workers Compensation Appeals that the Company or its agent initiates. Such information shall be provided to the Union within three (3) working days of initiating the appeal.

17.03 The parties agree to develop a Joint Modified Work program, as legislated, within thirty (30) days of ratification. Such program is subject to mutual Agreement. The Company will post a copy of the program.

ARTICLE XVIII

GROUP BENEFITS PLAN, SICKNESS and ACCIDENT INSURANCE, PENSION

18.01 The Province of Ontario currently provides an Ontario Health Insurance

Plan and employers are legislated to pay an Employer Health Tax. The Province of Ontario implemented an Ontario Health Premium which is paid by the employee through their Provincial Taxes deducted at source.

18.02 Employees are eligible for Group Benefits after completion of their

probationary period. Employees are required to make application for such coverage on forms required by the insurer. Group Benefits are as described in the booklet from description of each benefit. It is not an insurance policy. The booklet is designed to provide a general guideline and does not confer any contractual rights. All rights under this program shall be governed solely by the provisions of the Master Policy and by applicable law. The Union will be provided with a copy of the Master Policy. The Company will pay 100% of the premium costs for all benefits, except Long Term Disability which is paid by the employee through payroll deduction and subject to change on an annual basis on the renewal date of the policy.

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18.03 Highlights of the Group Benefits Plan (subject to 18.01) along with

changes to the Group Benefits Plan include the following: Extended Health Care (Medicare Supplement) including Prescription

Drugs The Company will provide a vision care plan with a maximum of:

o 2017: $220.00 payable per enrolled member every 24 months.

o 2018: $230.00 payable per enrolled member every 24 months.

o 2019: $250.00 payable per enrolled member every 24 months.

The Company will provide an orthodontic plan with a maximum of: o 2017/2018: $500.00 payable per enrolled member every 12

months. o 2019: $1,000.00 payable per enrolled member every 12

months The Company will increase Dental, minor services, (Level 1 and 2) with

a maximum of: o 2017/2018: $1,500.00 payable per enrolled member every

12 months o 2019: $2,000.00 payable per enrolled member every 12

months The Company will provide Dental, major restorations, (crowns etc.)

with a maximum of: o 2017/2018: $1,500.00 payable per enrolled member every

12 months o 2019: $2,000.00 payable per enrolled member every 12

months Chiropractic and other delisted services – Chiropractic will be $240

deductible per person per year; annual eye exams are included in benefits coverage; physiotherapy will be picked up by the plan

Emergency Travel Assistance Dental Care – to be based on one year behind current year ODA fee schedule. Long Term Disability – after you have been totally disabled for an

uninterrupted period of seventeen (17) weeks. The employee will pay 100% of the premium through payroll deduction which is subject to change on an annual basis on the renewal date of the policy. Benefits for qualifying employees will be 66.67% of the first $3,000 of your monthly basic earnings, and 45% of the balance of your monthly earnings up to a maximum benefit of $5,000. Coverage shall cease immediately upon cessation of the employee’s active employment. Receipt of benefits is contingent upon presentation of satisfactory medical evidence to the carrier. These are highlights only but the definitive and governing document is the Master Policy.

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Life Insurance for the employee, including those on sick leave, will be $45,000

Life Insurance for eligible dependents will be $5,000 insurance for spouse and $2,500 for each dependent child

Accidental Death and Dismemberment Insurance – amount of death coverage same as Life Insurance for the employee – see details re: dismemberment

18.04 The Company may, at any time, change the insurance carrier, provided

that the coverage offered to the employees shall not be reduced or altered to the detriment of employees. Should there be a detriment to the employees; then the Company shall be liable to compensate such employees. Where there is a change in carrier, the Company will provide the Union with the new carrier policy.

SICKNESS and ACCIDENT INSURANCE 18.05 Purpose and Eligibility

The Short Term Disability/Supplemental Unemployment Benefit (SUB) Plan provides for benefits from NEFAB and the Employment Insurance (E.I.) SUB Plan to eligible hourly rated production employees who are sick or injured as a result of a non-work related occurrence. You are not eligible for pay for occasional absences. You will be eligible for benefits under the Short Term Disability/SUB Plan provided your claim is approved by the EI Commission and you meet the following conditions: 1. you are a full-time hourly employee and have completed your

probationary period and are actively at work; 2. you will be absent from work for ten (10) or more consecutive working

days; 3. you are under the treatment of a qualified and legally licensed

physician and provide to the designated plan administrator satisfactory medical certificates as requested, verifying illness or injury which prevents you from working. A medical release consent form shall be completed prior to release;

4. You are totally disabled and unable to perform the duties of any available job the Company may offer.

5. you can furnish proof to the Plan Administrator that you have made application for and are eligible to receive E.I. Sick Benefits

6. All decisions regarding eligibility and Plan interpretation shall be the responsibility of the Plan Administrator and are subject to the Grievance Procedure as outlined in Article VI but are limited by E.I. Sub Plan regulations and guidelines and the details outlined in this Article.

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Amount of Benefit

The Short Term Disability/SUB Benefit plan will be calculated at a rate of seventy-five (75%) of the employee’s normal hourly rate multiplied by forty (40) hours, exclusive of shift or other premiums. For example, if the employees hourly rate is $17.22 the benefit would be ($17.22 x 40 = $688.80 x 75% = $516.60.

The Plan is intended to offset the two (2) week waiting period for E.I. Sick Benefits when normally no benefits are payable. During the waiting period NEFAB pays the full cost of seventy-five (75%) benefit from their general revenues. Beginning the third week of disability the benefit is comprised of fifty-five (55%) from the E.I. SUB Plan to the E.I. maximum and twenty (20%) from NEFAB. The maximum period of coverage (including the waiting period) is seventeen (17) weeks. If the employee is still disabled, he/she may apply for the Long Term Disability Plan. Claim Procedures

When you are absent from work due to non work related sickness or injury for a period ten (10) or more working days, a Physician's Report must be submitted to the Company Plan Administrator to be eligible for benefit along with proof of application and eligibility for E.I. Sick Benefits. Additional medical information may be required during the disability period. To ensure there is no disruption of benefits payment your Physician's Report must be submitted by your fifth (5th) day of absence or, in the event that the absence is planned (i.e. scheduled surgical procedure etc.), three (3) days prior to the anticipated leave or earlier, if possible. The Plan Administrator will use the E.I. stub to verify that the employee is in receipt of E.I. benefits. Any overpayment because you were not eligible for benefits must be repaid by the employee and will be deducted in subsequent pay periods. This deduction shall not exceed twenty-five percent (25%) of gross pay per pay period.

Exclusions

You are not eligible for these benefits for any period that you are not eligible for benefits from the E.I. Sick Benefits plan.

Pregnancy is not covered under this Plan. You should apply for maternity benefits provided by the Employment Insurance. Complications derived from pregnancy may be eligible for coverage.

any period of illness less than ten (10) working days in duration

disabilities arising from intentionally self-inflicted injuries

Any disability during which you are eligible to receive benefits under any Workers' Compensation Plan.

Prior EI claims may reduce your benefits.

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Duration of the Plan

This plan is registered with the Employment Insurance until Dec. 31, 2020. The Plan Administrator will notify the appropriate Human Resources Development Commission/Employment Insurance Commission of any changes within thirty (30) day of the effective date of the changes.

Confirmation of SUB Plan through to termination of Agreement will be provided to the Union.

18.06 Coverage for employees and their dependents will be continued for all

benefits (except for Long Term Disability) during an absence from work that is due to illness or non work related injury for which an employee is receiving income replacement benefits through the Short Term Disability/Supplemental Unemployment Benefit (SUB) or the Company’s Long Term Disability Plan or during absences covered by legislated maternity or parental provisions to a maximum of two (2) years. Benefit coverage for employees off work due to a workplace injury who are in receipt of WSIB benefits will have coverage for a maximum of two (2) years.

SAFETY SHOES and PRESCRIPTION SAFETY GLASSES 18.07 The Company will contribute towards the cost of employee’s safety shoes

and one pair of insoles at the rate of one hundred and twenty-five dollars ($125.00) every 12 months Benefits shall commence upon completion of probationary period and shall cease upon layoff or termination of employment.

18.08 The Company will pay the total cost of prescription safety glasses through

a voucher system. Glasses must be obtained from a Company identified source and meet Company specifications; one pair per employee every twelve (12) months.

PENSION 18.09 (a) The Pension Plan for employees shall be as described in the

Manulife Financial document dated February 19, 2003 entitled Nefab Inc. Member Booklet for your Group Retirement. Currently the employee’s contribute two (2.0%) of earnings (which includes base earnings, overtime and vacation pay but not bonuses or shift premium) to the plan and for each employee who contributes to the plan, Nefab contributes 1.0% of earnings as defined which increased to one point five (1.5%) of earnings as defined, effective January 1, 2006.

(b) No changes shall be made to the Plan which would affect an

employee’s benefit entitlement under this Article, except by mutual

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Agreement between the Company and the Union. The Company reserves the right to make any changes to the Plan that are required by regulatory authorities in order to maintain the registration status of the Plan. The Company will provide to the Union copies of any such amendments.

(c) The Company will provide each member of the Plan with a Pension

Statement twice a year.

ARTICLE XIX MAINTENANCE OF MEMBERSHIP AND CHECK-OFF OF UNION DUES

19.01 It shall be a condition of employment that each employee shall authorize

the deduction and remittance to the Union of dues as provided below. 19.02 The Company shall, as a condition of employment of each employee who

has completed forty (40) hours of employment, deduct from each bi-weekly pay due to such employee, whatever sum is authorized by the Union Constitution as regular monthly Union dues uniformly levied upon all members and shall, together with an itemized employee check off list, remit such dues for each current month by cheque prior to the tenth day of the month following the month in which such deductions are made, to the Financial Secretary of the Union. When an employee returns to work following Accident or Illness for which he received sickness indemnity benefits, the Company shall deduct (2) two times the authorized weekly Union dues for each full week the employee was on weekly indemnity benefits.

19.03 The Company will record on members T-4 Slips all Union dues paid by

such employee.

ARTICLE XX NOTICES

20.01 All written communications between both parties in matters concerning

this Agreement shall be sent by Registered Mail or be made by Personal Delivery, except in cases of expediency, then a verbal presentation will be acceptable and confirmed in writing within two (2) days thereafter, by Registered Mail or personal delivery, as follows:

1. Company - To the President or equivalent 2. Union - To the Designated Shop Steward

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20.02 The Company will supply to the Union copies of all notices pertaining changes in management structure, appointments and committee representation which will affect the collective Agreement.

20.03 The Company will provide to the Union a list of member’s names, on file

addresses and wage rates the first week of November annually, providing such information does not contravene legislation.

ARTICLE XXI RENEWAL, AMENDMENT AND TERMINATION

21.01 This Agreement shall continue in effect until December 31, 2019, and shall

continue automatically thereafter for annual periods of one year each, unless either party notifies the other in writing not less than thirty (30) days and not more than ninety (90) days prior to the expiration date that it desires to amend or terminate the Agreement.

21.02 Negotiations shall begin within fifteen (15) days following notification for

amendment as provided in the preceding paragraph. 21.03 If, pursuant to such negotiations, an Agreement is not reached on the

renewal or amendment of this Agreement prior to the current expiration date, it shall expire unless it is extended for a specific period by mutual Agreement of the parties.

21.04 It is understood that all previous Agreements whether oral or written, by

and between the Company and the Union are superseded by this Agreement.

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APPENDIX ' A'

CLASSIFICATION AND WAGE RATES – POOL 1

Effective January 1, 2017 (2%)

(Months)

Start 3 6 12 18 24

Resource Pool One Licenced Millwright 23.95 25.22 26.49 27.73 29.00 30.26 Lead Hand 20.22 Shipper/Receiver 19.26 Maintenance 22.90 Maintenance Assistant 19.86 Truck Driver 19.20 Yard Material Handler 18.74

Effective January 1, 2018 (2%)

(Months)

Start 3 6 12 18 24

Resource Pool One Licenced Millwright 24.43 25.73 27.02 28.29 29.58 30.87 Lead Hand 20.62 Shipper/Receiver 19.64 Maintenance 23.36 Maintenance Assistant 20.26 Truck Driver 19.58 Yard Material Handler 19.11

Effective January 1, 2019 (2.5%)

(Months)

Start 3 6 12 18 24

Resource Pool One Licenced Millwright 25.04 26.37 27.69 29.00 30.32 31.64 Lead Hand 21.14 Shipper/Receiver 20.13 Maintenance 23.94 Maintenance Assistant 20.76 Truck Driver 20.07 Yard Material Handler 19.59 Note: For Licensed Millwrights, the Company may start employees at any of the rates shown to recognize prior work experience or skills. Progression will occur as per Appendix “A”.

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CLASSIFICATION AND WAGE RATES – Direct Labour Pool

a) Employee points will be reviewed January 1 and July 1 each year to determine the employees who will be moving up to the next level. b) Payouts - January and July of each year c) Anyone who moves up a level does not receive a payout for that period

level

current rate

YEAR

2017

2018

2019

YEAR % $ % $

2017 0.5 187.93 0.5 187.93

2018 0.5 189.80 0.5 189.8

2019 0.75 287.51 0.75 287.51

18.25

wage progression

Grandfathered Pool 2Greater than 30 Pts total

Min 4X 5/10 Pt Centers

Min 2X 10 Pt Centers

18.43

PAYOUTS - Pool 2

JANUARY JULY

%

1

1

1

Rate

17.89

18.07

Level

3 %4 (Top rate for

current pool 3)%

current rate 17.05 17.05

YEAR

2017 17.39 2 17.48 2.5

2018 17.74 2 17.92 2.5

2019 18.18 2.5 18.43 2.9

YEAR % $ % $ % $ % $

2017 0.5 179.09 0.5 179.09 0.25 90.10 0.25 90.1

2018 0.5 180.86 0.5 180.86 0.25 91.37 0.25 91.37

2019 0.75 273.94 0.75 273.94 0.5 185.43 0.5 185.43

22X 5 Point Centers

32x 5 Point Centers

1x 10 Point Center

NO PAYOUT NO PAYOUT

4Greater than 30 Pts total

Min 4X 5/10 Pt Centers

Min 2X 10 Pt Centers

PAYOUTS - Level 2

JANUARY JULY

17.31

17.57

17.83

%

1.5

1.5

1.5

1Minimum 15 points

WAGE PROGRESSION

PAYOUTS - Level 1

17.56

JANUARY JULY

2

17.05

%

1

1

1

RATE

17.05

17.22

17.39

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Appendix ‘B’ Other

1. Where training is required in order to facilitate the changes required, such

training will be given in regular hours at regular pay.

2. Meetings will be held at least once per quarter between the Company and the Union to discuss the state of the business and any issues (including plans for subcontracting bargaining unit work), changes or problems affecting the parties.

3. Video Surveillance

The video surveillance equipment is installed for the purpose of protecting the site and property of Nefab against criminal acts such as theft, depredation and damage to property. Video surveillance equipment will not be used for surveillance of employees as a means to evaluate the performance of employees and to gather evidence in support of disciplinary measures unless such disciplinary measures result from the commission of a criminal act. Additional equipment may not be installed in the workplace, lunchrooms or restrooms without proven necessity and prior approval of the Union, which approval will not be unreasonably withheld.

APPENDIX C

Students

The Company and the Union agree that the hiring of students is of sound social and economic benefit. However, the hiring of students shall not be used to circumvent the hiring of full time employees. Therefore, in order to facilitate this benefit the following is agreed:

1. Students shall not be employed while any bargaining unit employee

is on lay off.

2. All Students will receive in house health and safety training prior to commencing work.

3. In order to qualify for these positions, applicants must be presently full-time students.

4. Wages shall be paid at the rate of $14.00 per hour with overtime paid as per the Collective Agreement.

5. No student shall work in excess of 48 hours per calendar week.

6. Applications shall be made no later than April 30th each year.

7. Students are eligible for Christmas and summer employment, or during Co-operative Placement periods.

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APPENDIX D

LETTER OF UNDERSTANDING LEAD HAND PREMIUM

The Company agrees to pay Lead Hands a premium of two ($2.00) per hour when replacing a Supervisor under the following circumstances only: When he is requested to replace a Supervisor due to a vacancy in a

Supervisory position while the Company is recruiting to fill the position

When the Supervisor is absent on second or third shift, when the absence is greater than two (2) hours.

When he is requested to replace a Supervisor on the second or third shift when the Company determines a Supervisor is not required because the shift is operating on less than a full shift operation

This premium is only paid for hours worked and this premium is not included in the overtime calculation.

APPENDIX E

LETTER OF UNDERSTANDING TRAINING

The Company will develop a training plan to train for additional rate levels. The training plan is for 3, 5 and 10 point machine centers with opportunities provided by seniority to those who sign semi-annual training postings. The training plan will be reviewed with the Union on a quarterly basis to review progress and make any changes required to achieve objectives. In the event the Company discontinues the use of a machine center, the Company and Union will develop a training plan to allow employees who have points on the skills matrix for that machine center to be trained on other machine centers remaining on the skills matrix and required by the Company to maintain their total points within a one year period, subject to availability and scheduling.

IN WITNESS WHEREOF each of the parties hereto has caused this agreement to be signed by its duly authorized representatives this fifth (5th) day of January 2017.

THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS

£~~ Stephen Kilby

NEFAB INC.

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FINAL - January 5, 2017