Collective Agreement

Sheet Metal, Air, Rail and Transportation Local Union 540

(hereinafter the "Union") And

Kingspan Insulated Panels Ltd.

·~

Caledon, Ont. (Hereinafter the "Company")

Expire: Apri130'"· 2016 to Apri13Qth 2021

Table of Contents

Article 1- Purpose Page 1 Article 2- Scope of Agreement Page 1 Article 3- Managements Rights Page 2 Article 4- Union Shop Page 2 Article 5- Dues Check-Off Page 3 Article 6- Hours of Work Page 3 Article 7- Overtime Page 5 Article 8- Call Time Hours and Call in Procedures Page 5 Article 9- Payment of Wages Page 5 Article 1 0- Leaves of Absence /Jury Duty Page 6 Article 11-Seniority/ Probation Page 7

Job Classification/Postings and Training Page 8 Class 3 Rotations/Freezing Job Classifications/Layoffs Page 9 Recalls/ Temporary Vacancies Page 10

Article 12- Vacation with Pay Page 11 Article 13- Statutory Holidays Page 12 Article 14- Benefits Page 13 Article 15- Pension Plan Page 14 Article 16- Safety & Health Page 14 Article 17- Grievance Procedure Page 14 Article 18- Arbitration Page 16 Article 19- Wage Schedule Page 17 Article 19- General Increase Page17 Article 20- Duration Page18 Letter of Understanding/ Profit Sharing Page 19 Letter of Understanding/Labor Management Meetings Page 20 Letter of Understanding/Quarterly Company Presentations Page 21

Duration: April 30, 2016 to May 1, 2021

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Article One- Purpose

1.01: The purpose of this Collective Agreement is to promote peace and hannony between the Company, its employees and the Union; to promote the efficient and promable management of the business; to provide processes for prompt and equitable disposition of grievances; and to establish and maintain satisfact01y working conditions, hours and wages for all employees who are subject to the provisions of this Collective Bargaining Agreement.

1.02: The parties hereto shall cooperate and assist each other in every legitimate way to conduct their respective business in an efficient and harmonious manner

(a) It is agreed by the Union that there shall be no sliikes, either complete or partial during the life of this Agreement. It is further agreed by the Union that should any such collective action be taken, the Union shall instruct its members to carry out the provisions of this Collective Agreement and return to work and perform their duties in the proper and usual manner.

(b) The Company agrees there shall be no lockout' of employees during the life of this agreement.

1.03: All terms and conditions of this agreement will apply to all bargaining unit members without discrimination as to sex, color or handicap. All reference in this Collective Agreement to the masculine gender shall apply equally to the feminine gender.

1.04: Entire Agreement: This Agreement constitutes the entire agreement of the parties and supersedes all prior representations, proposals, discussions and communications, whether oral or in writing. This Agreement may be modified only by written instrument signed by both parties.

Article 2 - Scope of Agreement

2.01: The Company recognizes the Union as the sole bargaining agent for all employees at its Caledon, Ontario location save and except for office and sales staff, supervisors, those above the rank of supervisor, maintenance personnel and those excluded by the Labour Relations Act.

2.02: Management and Non-Bargaining unit employees will not preform work normally performed by a bargaining unit employee except for the following circumstances: Experimental, Training, prototyping, relief, and cover for critical short absences.

2.03 The Company Agrees that agency employees will not normally be employed to perform task (non-posted positions) for more than 90 days in a 6 month period. It is further agreed that the union and the company can extend this period for legitimate reasons. The Union will not unreasonably withhold its agreement.

Article 3 -Management Rights

3.01: The Union recognizes that the Company has the exclusive right to manage the business and to exercise all the customary prerogatives of management subject to the terms of this Agreement. Without limiting the generality oft h e foregoing the Company has the vested rights to:

(a) Maintain order, discipline, efficiency and productivity;

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(b) Hire new employees, based on their skill, ability, qualifications, educations, etc .. entirely at the discretion of the Employer;

(c) Discharge, transfer, promote, demote, or discipline employees, provided that a claim of discriminatory promotion, demotion, or transfer, or a claim that an employee has been discharged or disciplined without just and reasonable cause, may be subject of a grievance and dealt with as herein provided.

(d) Operate and manage the business in all respects, in accordance with the commitments and responsibilities of the employer; (e) Determine the number and locations of plants, the schedules production, the kinds and locations of machines and tools to be used, the processes of manufacturing and assembly, the engineering and designing of its products, and the control of materials and parts to be incorporated in its products; (~ Publish and maintain reasonable rules, regulations and safety policies.

Article 4 - Union Shop

4.01: The Company agrees that all employees covered by this Agreement except new employees during their probationary period shall, as a condition of employment, become and remain members of the union in good standing during the life this Agreement.

4.02: The Company will not be required to dismiss or suspend employees from employment who have been expelled or suspended by the Union, unless such expulsion or suspension by the Union was for non-payment of Union initiation fees or monthly union dues.

4.03: Stewards: (a) The Employer recognizes the right of the Union to appoint or otherwise elect;

One chief Steward and one (1) steward for the day shift; and one (1) Steward for the afternoon shift; and one (1) specifically (1) Steward for the production line. The Unkm will notify the Company in writing within 48 hours stating those persons designated as Steward.

(b) When the active Union membership count totals seventy(70) members; there shall be 1 additional Steward; at one hundred( 1 00) members an additional Steward will be appointed or elected by the union

(c) It is mutually agreed that employees shall not serve as stewards until they have had one yea~s service with the Employer.

(d) The Union acknowledges that Stewards have regular duties to perform behalf of the employer and those persons will not leave their regular duties without obtaining the permission from the Plant-Manager or designate (such permission shall not be unreasonably withheld). Stewards will explain the nature of their business before being granted such permission.

(e) It is clearly understood that the Stewards will not absent themselves from their regular duties unreasonably in order to deal with complaints or concerns of employees. In accordance with this understanding, the Company will compensate such employees for time spent in handling grievances of employees at their regular rate of, pay and that this does not apply to time spent on such matters outside of regular working hours. Permission will not be unreasonably withheld.

(e) The Company reserves the right to reschedule a steward to another shift if his Union duties conflict with operational requirements.

4.04: Business Agents of the Union shall have access to the plant covered by this Agreement to carry

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out their regular duties provided their presence does not in any way interfere with production and that they will receive permission from the Plant Manager (or his designate) at least 24 hours in advance of such visits.

Article 5- Dues Check-Off

5.01: The Company agrees that deductions will be made for every employee covered under this Collective Agreement who has passed the probationary period Union initiation fees, dues and assessments legally levied in the amounts advised by the Financial Secretary treasurer of the Union.

5.02: Provided the Company makes the agreed upon deductions and remits them to the union in a timely fashion. The Union herewith undertakes to hold harmless and agrees to indemnify the Company, its successors, administrators and assigns against any liability incurred by reason of the Company making such deductions and remittances pursuant to this Article.

5.03: Deductions will be made from the second earned pay period in each month and remitted to the Financial Secretary of the union by the1011i of the month following month. The remittance shall include a list of employees showing their respective deductions. When required, the list shall also include new employees, terminations and those on compensation.

5.04: New employees, after having worked five (5) working days, shall be made liable for the required deductions, if deduction is not made from an employee for any reason, deduction for that month will be made from a subsequent pay cheque and forwarded with the next remittance.

5.05: The Employer agrees that if signed authorizations are deemed required to make such deductions, the Employer will obtain them. The Union will supply such forms on request.

Article 6- Hours of Work

6.01: The Employer does not guarantee to provide work for any employee.

6.02: The standard hours of work shall be forty hours (40) per week, consisting of five (5) eight and one­half hour days, Monday to Friday, with one half hour unpaid lunch break. The Company reserves the right to establish shift schedules or alter the start and quitting times to meet production requirements however will consult with the Union before making such a change and will provide at least one (1) week notice to employees of the change.

6.03 :( a) The standard hours outlined in 6.02 shall be referred to as the regular shift and shall be paid at regular straight time rates.

(b) A paid rest period of not more than fifteen (15) minutes will be allowed in each half of a shift at the times specified by management.

(c) If overtime has been scheduled at the end of a regular shift and is at least one (1) hour, a ten minute paid break will be given.

6:04: Twelve Hour Shifts

(a) The company reserves the right to change to a Twelve Hour Shift rotation at its discretion to meet operational needs. The Company will provide employees with at least four weeks written notice of a change to Twelve Hour Shifts or in the event that it needs to revert back to an alternate shift schedule.

(b) Twelve Hour Shift Work will consist of 4 Shifts rotating. For example a shift rotation may

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take the following form:

Sunday Day To Thursday Night 1900 hrs To 0700 hr Friday Night 1900 h ... To 0700 hr

Monday Day 0700 hr To 1900 hrs. Tuesday Day 0700 hr To 1900 Irr

Wednesday Day 0700 hr To 1900 hr

Saturday Night 1900 hr To 0700 hf!

Sunday Night 1900 hl"l To 0700 hrs

'Thursday Day 0700 hrs To 1900 hrs Friday

' " Day 0700 hrs To 1900 h

Monday Night 1900 hrs To 0700 h

Tuesday .. Night 1900 hl"l To 0700 hrs

Wednesday Night 1900 hl"l To 0700 hrs Saturday D!!Y 0700 Im To 1900 hrl L. I

Repeat ........ .

The Company shall di&:uss the staitl finish times with the Union prior to implementing the actual12 Hour Shift schedule.

(c) Overtime will be paid after the completion of the daily scheduled shift or on scheduled days off provided the employee has worked all his scheduled days in the calendar week. If an employee has missed a scheduled day and is required to work an unscheduled day in the same week that day shall be paid at straight time. The Union agrees to cooperate with the Company in making an application to the Employment Standard Branch to average hours for the purposes of calculating overtime pay.

(d) There shall be one twenty minute paid break in the first half of a shift and one twenty minute paid break in the second half of a shift. In addition there shall be a paid twenty minute break at approximately the half-way point of a shift.

(e) An employee may not leave his shift until his replacement has arrived or until he has been relieved by his supervisor. Employees may make arrangements amongst themselves for early or late relief up to one-half hour prior to or following the start of the shift provided no extra cost or administrative burden is placed on the Company.

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(n Maintenance Work on Sundays

The Company may shut down production each Sunday between 0700 hrs and 1900 hrs. This 12 Hour period will be used to run single skin and canyout maintenance programs.

6.05: When a second or third shift is added employees will rotate between shifts every two weeks moving from nights to afternoons to days and so on. In the event that an employee must be moved from one shift to another outside of the normal rotation he shall be given forty eight hours' notice of the change

6.06: All employees will punch a time clock or will be required to track their time in a method as determined by management.

6.07: Any other hours worked in excess of forty in a week (40.00) will be deemed overtime and the overtime premiums specified in Article 7 will apply.

6.08: No Employee will be allowed to work more than sixteen (16) hours in a twenty-four hour period.

Article 7- Overtime

7.01: All overtime worked in excess of forty hours(40)in a week will be paid for at one and a half (112) times the regular shift rate of pay.

7.02; Overtime shall be on a voluntary basis and shall be distributed equitably amongst employees that normally perform the work on the respective shift. In the case of insufficient volunteers management reserves the right to assign the work by reverse seniority to those who normally perform the work on the respective shift.

Article 8- Call Time Hours aud Call iu Procedures

8.01: Any member reporting for a scheduled shift and not being required shall receive no less than four (4) hours pay unless he has received prior notice not to report or in instances where the lack of work was due to Circumstances beyond the Company's control.

8.02: Any member who has complete one (1) shift and has left the premises and who is called back to work for any reason shall receive no less than four (4) hours pay at the recognized overtime rates.

Article 9 - Payment of Wages

9.01: The Company shall pay employees every second Friday all Wages and salaries earned up to two weeks prior to the pay day. Payment is to be made by direct deposit into the specified account by the employee. The Employee shall receive a pay stub indicating hours worked at straight time and at overtime rates, vacation pay earned. Holiday pay and individual deductions payment will be issued on the Thursday Immediately prior to the Regular payday in the event that a statutory holiday falls on a Friday. The company will make all reasonable efforts to distribute the pay stubs on the Thursday of a pay week, but no later than a Friday.

9.02: The Company shall endeavor to ensure employees receive all wages or missed pay in excess of $100 (gross) and statements either within five (5) working days after the regular scheduled pay date; or after last day worked; layoff or termination of employment. With respect to Records of Employment the company shall file a web

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based application to Human Resource Development Canada within 5 days or by the end of the pay-cycle, whichever is the later date.

9.03: Where there is a dispute concerning wages, vacation pay, staluary holiday pay, etc. with the employee, that employee's time card records (copies made if necessary) shall be made available to the Union far review within two (2) working days of the request. Errors shall be adjusted within five working days or by the next pay period, whichever constitutes the longer period of time.

Article 10- Leaves of Absence

10.01: Bereavement Leave- Employees who have completed their probationary period with the Employer will be allowed, in the event of death of relatives as noted herein, a leave of absence. The pay of the employee is to be his regular straight time rate of pay for:

(a) Up to five (5) consecutive working days off with pay at his regular straight time rate of pay for the scheduled hours of work in the event of the death of their spouse/common-law spouse, mother, father, son, daughter, step son, step daughter, sister and brother.

(b) Up to three (3) consecutive working days off with pay at his regular straight time rate of pay for the scheduled hours of work in the event of the death of their grandfather, grandmother, grandson, and grand-daughter.

(c) In the event that an employee musttravel within Canada further than 300 kilometers from his home to attend the funeral of any relative mentioned above he may be granted an additional two (2) days leave without pay. In the event that the employee must travel outside of Canada and requires additional leave he may submit a request in an extended unpaid Leave of Absence or Up to fifteen (15) days, this will not be unreasonably denied.

10.02: Jury Duty

(a) An employee who is required to perfomn Jury Duty or serve as a subpoena Crown Witness (provided it is not in a case against the interests of the Company) on a day he is regularly scheduled to work shall be reimbursed the difference between the pay received for Jury Duty or as a witness and his regular straight time rate of pay for the hours he was scheduled to work for a period of time not to exceed fifteen (15) days. It is understood that such reimbursement shall not be for hours in excess of hours nomnally worked, less pay received for jury duty. The employee will be required to furnish proof of call to jury service or of call to serve as a crown subpoena witness and jury duty pay received.

(b) Employees shall return to work on any day when after completion of the jury duty there is more than three (3) hours remaining in the scheduled shift unless this requirement is waived by the employee's immediate supervisor or the Plant Manager. Employees shall not be required to report back to work on a day where less than three (3) hours of their normal shift remains to be worked.

(c) Jury Duty Hours- Hours served for Jury duty will be counted as hours worked for the purpose of qualifying for vacations and recognized paid holidays, but will not be counted for the purposes of computing overtime.

10.03: Union Business- Upon one week's written notice by the Union stating the reason for such a request up to two Stewards may be granted a leave without pay to attend to Union Business. Such Leave shall not exceed live (5) consecutive work days nor shall such leave exceed a total often (10) days in a calendar year (except in years when the collective agreement is being negotiated for renewal), and provided that regular production scheduled by the Employer is not hampered or halted in the absence of such employees.

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10.04: The Employer may grant Leave of absence to any employee on compelling grounds, conditional of the following terms;

a) Applicant must apply one month in advance unless circumstances arise beyond the control of the employee.

(b) Applicant must apply in writing to the Employer disclosing grounds.

(c) Applicant must have a minimum of eighteen (18) months seniority.

(d) Such leave shall not be for the purposes of seeking employment elsewhere and the employee may no engage in paid employment for any other Company during the leave.

(e) Such leave shall not interfere with operational requirements or cause additional costs to The Company.

Management will provide a written response to all written Leave Applications within 4 business days.

Article 11 -Seniority 11.01: In all cases of job posting, layoffs and recalls the skill, ability and qualifications to perform the available work at the required standard of proficiency as determined by the Company shall be the determining factors and where there factors are relatively equal between two or more employee then seniority shall be the deciding factor. At all times the Company retains the right to retain only those employees who have the skills, qualifications and ability to perform the available work at the required standard of proficiency as determined by the Company.

11.02: Probation:

(a) An employee shall be considered 'probationary" for the first ninety (90) days worked. If a probationary employee has been laid-off for a period greater that the length of this accumulate service he shall forfeit all recall rights and subject to rehire at the discretion of the Company without recognition of past service. The probationary period on twelve hour shift schedule shall be sixty (60) days.

(b) Stewards will be provided with a copy of the following documents for vacancies: The job posting, the submitted list of candidates, and the notice of the union candidate hired I selected to fill the position.

(c) A 'probationary" employee shall not have the rightto grieve this termination of employment except in cases of alleged discrimination on a prohibited ground including for alleged Union activity.

(c) Agency employees will be hired on full time upon completion of 90 days of probation period and back dated to date of hire.

11.03: Calculating Seniority:

(a) Seniority will date from the original date of hire once an employee has successfully completed his probation period in 11.02 above.

(b) Where two or more employees have the same Date of Hire seniority will be determined by the date when the offer of employment was first made and where this is the same amongst two or more employees the order will be determined alphabetically.

(c) Seniority shall be maintained and accumulated during any absence due to sickness, injury; or on authorized leave of absence

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11 .04: The Union will be provided an up-to-date seniority list once every three (3} months and such list will be posted in a prominent place in the workplace. Disputes regarding the seniority list may be subject to the grievance procedure provided the dispute is brought to the attention of the Company within five (5) days of the receipt of the most recent seniority list and provided the dispute only pertains to changes made to the list as previously published. The seniority list will include the following information: The Company will submit a revised copy of the Seniority list to the Union when changes are made or every 3 months.

Employee Name

Employee Start date

Employee Job classification

11.05: Job Classification

(a) Entry Level Employees

Probationary Employees and students are to be hired into positions in the Wrapper/Packaging Classification. Under some circumstances new hires may be assigned positions in Class 2; when there are not a sufficient number of employees to fill those positions.

(b) Job Classifications

The following line of Job Classification has been developed to facilitate employee !Jaining, layoffs, recalls and promotions within production

0 Wrapper/Packaging

• Stacker • Trim less Ends

• Embossing

• Coil Man

• Roll Forming Mils

• Saw, Press

• Lay-down

• Multi-skilled • Stucco

• Karrier • Block Cutter

The following jobs are outside the Job Classification:

Class 2: Slitter/Bender, Shipping/Receiving.

(c) Postings Training and Promotions

Once an employee has mastered the skills of his position he will be given opportunities to train up to the next positions in the job classifications subject to production requirements.

All training positions within the job classifications will be posted for a period of 5 days and will include necessery requirement for the application.

The successful candidate(s) that meet this criteria will be trained in the order of seniority all else being equal.

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Class 2 positions in the job classifications will be posted and subsequently offered to the senior employees in class 2 positions provided they have the qualifications, skills, and abilities to perform the work.

In Class 3 employees will be allowed to require multiple skills by mastering each of the positions over a period of time (Embossing, Coil Man, Roll Forming Mills, Saw and Press).

As each position is mastered the employee's rate will be adjusted to reflect the skill level. Training positions will be posted for a period of five (5) days and will include necessary requirements for the application.

The successful employee(s) who meet the criteria will be trained in order of seniority such that the senior man will be given the first opportunity to require an additional set of skills, then the next most senior and so on.

Once all employees in Class 3 have had an opportunity to pick up an additional set of skills the senior employee will be given a second opportunity and so on.

Employee in Class 3 cannot progress to Class 4 until they have mastered all the skills except under circumstances where none of the employees in Class 3 have mastered all of the requisite skills in which case the senior employee with the most number of skill sets will be moved up.

It is the Oompany's sole discretion to detenmine the amount of training that can be conducted at any given time. Notwithstanding every effort will be made so that employees are given opportunities to advance.

(d) Training Rates

When training in the nonmal oourse of business the employee shall be paid at the rate of his current classification. If the employee is being trained as a result of a move up the Job Classification; in the case of a Class 1 employee moving up to Class 2 he shalt be paid at a rate equal to the Class 'I rate plus the Class 2 rate divided by 2 (i.e the average of the two rates) for a period of forty-five (45) working days or until he has mastered the new skill needed whichever time frame is less. In all other cases the employee moving up in the Job Classification will be awarded the lowest rate in the Classification upon being moved.

(e) Class 3 Rotations

Employees in Class 3 shall be rotated through the various positions once they have acquired the necessary skills in order to facilitate training and in order to keep their skill levels current. An employee wilt not be paid an additional lift on wages as a result of such rotation. Increases in the rate of pay are only granted in Class 3 as skills are mastered.

(f) Freezing in the Job Classification

Employees are not penmitted to 'freeze" in a position in the Job Classification. An employee who is unwilling to move up the Job Classification or is unable to master a position in the Job Classification will be moved to the next available position outside the Job Classification. In these instances the employee will remain in his position and the opportunity to train or to accept a promotion will be offered to the next senior employee.

Any employee in Class I who refuses a move up the Job Classification or is unable to master the skills required in a Class 2 position may be subject to penmanent lay off at the sole discretion of the Company.

(g) Layoffs

Layoffs will be by seniority in a classification. In the Job Classification the junior employees in Class 4 shall bump down to Class 3. In Class 3 the junior employees with the least number of acquired skill sets will bump down to

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Class.2. Next the junior employees in Class 2 shall bump down to Class]. Finally the junior employees in Class 1 shall be the employees laid off. Employees cannot refuse to exercise a bump or to take a voluntary layoff out of the prescribed order.

(h) Recalls

A recall will be conducted in reverse order of the layoff. An employee cannot refuse to move back to his former position in a recall.

(i)Posting Vacancies outside the Job Classification

Vacant Jobs in Class 2 outside of the Job Classification will be posted except under circumstances where an employee has frozen in the Job Classification and is to be assigned to such a vacancy when it occurs.

Employees may not post down a Classification unless there are compelling and substantiated reasons for doing so. Employees outside the Job Classification may reenter the Line at Class 2 when an opening occurs.

Postings will be put on the Bulletin Board for 5 days and will state the qualifications and responsibilities of the position. Positions will be awarded according to an individual's qualifications and abilities. Where these are equal the position will be awarded to the senior applicant. Positions will nonmally be awarded within ten (14) clays following the posting period.

O)Temporary Vacancies in the Job Classification

Temporary vacancies in the Job Classification will be filled by moving the senior qualified and able employee up the Job Classification in such a manner as to create the vacancy in Class I. Employees filing temporary vacancies of less than five days will retain their current rate. If the vacancy continues past five days they will receive either the training rate for a Class 2 position or the lowest rate in the Class in all other instances. If the vacancy persists for more than 45 days the employee will get the rate for the Class in all instances.

(k) Temporary Vacancies outside the Job Classification

Temporary Vacancies outside the Job Classification will be filled at the sole discretion of the Company. Employees assigned to a temporary vacancy will retain their rates unless the vacancy continues for more than five days. If the vacancy continues past five days they will receive the training rate for a Class 2 position for the first 45 days worked and the rate for Class 2 thereafter.

In the case where a position outside the Job Classification will be temporarily vacant for more than five days it will be offered to the senior employee qualified and able in Class t who m ay refuse. If all Class I employees qualified and able refuse the assignment the position will be assigned to the junior Class 1 employee who is qualified and able to perform the duties.

In no Class one (1) employees are qualified and able the Company may assign the position at its discretion provided that under this circumstance no employee shall suffer a loss of pay.

11.06: An employee shall lose all seniority rights and be deemed terminated from employment in the event that: (a) He voluntarily quits his employment. (b) He is terminated with just and sufficient cause and such termination is not reversed

through the grievance/arbitration procedure

(c) He is laid off for a period equal to his accumulated seniority or twenty four (24) months whichever is less.

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(d)He is absent without leave and/or notice for a period three (3) consecutive days without satisfactory explanation to the Company

(e)He fails to return to work immediately following an approved leave of absence

(fjHe fails to answer a recall within forty-eight (48) hours (exclusive of Saturdays Sundays and Statutory

Holidays) of notification by phone or by written notice delivered by courier to his last known address

(g) His contract of employment has been frustrated by illness or injury

11.07: Employee Responsibilities:

(a) It is the employee's responsibility to notify the Company immediately of any change of address, telephone number and/or status.

It is the employee's responsibility to notify the Company with respect to how he may be contacted during a layoff.

11.08: (a) Nothing in this agreement shall restrict the Company from assigning work to any employee provided he has the required skills qualifications and ability to perform the work. Employees assigned to perform work in a higher classification shall be paid the rate of the higher classification if the assignment continues beyond five (5) full shifts as outlined below.

(b) An employee assigned to work in a lower classification by the company shall retain his rate of pay. This does not apply to situations where an employee has "bumped" to a lower classification as the result of a lay-off.

11.09: Nothing in this agreement shall prevent the Company from using agency personnel to fill temporary needs provided that any individual assigned through an agency shall not remain working for the Company for a period in excess of three (3) months and shall only be used in either Class One or Class Two positions. Such timelines may be extended by mutual agreement.

Article 12 Vacation with Pay

12.0 1: Employees shall receive vacation pay in accordance with their years of seniority with the

Employer as follows:

(a) Up to 3 year's seniority: 4% of gross earnings (2 weeks)

(b) 3 years+ 1 day to 7 years seniority: 6% of gross earnings (3 weeks)

(c) 7 years+ 1 day and up seniority: (of gross earnings (4 weeks)

12.02: The Company shall pay employees their vacation pay at the time the employee takes his vacation. Any vacation entitlement above the statutory minimums shall be forfeited if not used by the end of the calendar year however the balance of vacation pay not paid shall be paid by the end of December in each year.

12.03: A holiday schedule calendar will be open for submissions December 1 "of each year for the following year. Employees shall bid on vacation by seniority. Vacation requests must be made for one week blocks and no employee shall be allowed to book no more than three consecutive weeks of vacation; pending vacation entitlement through years of service. Vacation requests will be submitted on the official vacation form signed and dated by the employee. The

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employee will receive a initialed copy of the submitted request noting receipt by their supervisor/manager within 5 working days the manager will review grant/deny the request, sign, date and return copy to the employee. If for any reason this does not happen the employee may request a reply from his manager or escalate the request for a reply through HR.

The Company reserves the right to schedule shutdowns of the operations in which the employees may be mandated to schedule their vacation time, provided the Company announces the shutdown by December 1st of the previous year.

The Company reserves the sole right to determine the number of employees in a classification or on a shift who will be permitted to take vacation at any given time.

Employees must schedule a minimum of three (3) weeks off on vacation each year (unless their entitlement is equal to less than three (3) weeks).

However, the company may grant 1 day vacation leave; when the employee provides an advance notice of 5 working days and circumstances allow.

The company may grant 1 week previous year vacation carry over; however, all vacation carry over days must be taken by the end of February of the following year.

No more than two weeks' vacation will be taken consecutively unless all employees have had an opportunity to bid for available weeks.

12.04: Employees absent from work due to sickness or injury for a continuous period of up to one year or who have been laid off and retain their seniority rights shall continue to accrue Service for the purpose calculating vacation entitlement only. For clarity vacation pay is based on gross earning paid by the company and is distinct front entitlement to time oft'.

12.05: Employees with less than six (6) months seniority will be granted vacation time off at the discretion of the Company.

Article 13• Statutory Holidays

13.01: All employees covered by this agreement who have been employed with the Company for one (I) month or more shall receive eleven (11) paid statutory holidays per year, subject to Clause 13.04 and shall receive a day's pay at their regular rate of pay on the payday following the statutory holiday.

13.02 The eleven (11) statutory holidays shall be:

New Year's Day

Family Day

Good Friday

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Victoria Day

Canada Day

August Civic Holiday

Thanksgiving Day

Boxing Day

Christmas Day

Easter Monday

Labour Day

13.03: (a) When a statutory holiday falls on a non-working day, the day or days to be observed shall be determined by the Company based on customer deadlines and production schedules. When customer deadlines or production schedules are not a factor, the format shall be to observe the statutory holiday on the Friday when the statutory holiday falls on a Saturday, and to observe the statutory holiday on the Monday when the statuto!)' holiday falls on a Sunday.

(b) 13.03: Shall not apply in the case of continuous operations in which case the statuto!)' holiday will be observed on the date of the statutory holiday in all instances.

13.04: To be entitled to statutory holiday pay, employees must have worked ten ( 10) of the thirty (30) days immediately prior to the statutory holiday in question. Each employee must worl< is or her scheduled shift immediately preceding and immediately following the statutory holiday to qualify for statutory holiday pay. These days are defined as qualifying days. However, under the following special circumstances an employee will also qualify:

(a) If on bereavement leaves during a qualifying day

(b) If on jury duty or crown witness subpoena during a qualifying day

(c) If the employee provides a note from a Doctor stating that he/she was examined by the doctor on the qualifying day and was found unfit for work due to illness or injury.

13.05: When a statutory holiday falls within an employee's vacation, he or she will be granted the day off at the end of his vacation.

13.06: At no time will an employee receive statutory holiday pay from the Company and also receive pay for that day from another source or benefit.

Article 14- Benefits

14.01(a): The Company will pay 100% of the premiums, less $12.00 per month (single or family) to be deducted from each employee each month, to maintain benefit coverage for life insurance, AD&D coverage, medical, dental and eye glass coverage as provided in the Benefit Plan cumently provided by Equitable Life of Canada under Policy #81 0107 Class D. The company reserves the exclusive right to change insurance carriers provided the benefits provided are the same or equivalent to the benefits under said plan.

(b) Employees may opt to be covered under the long-term disability plan provided through the company that the employee's expense.

14.02: Employee shall be eligible for the health and welfare package after they have completed their probationary period, as outlined in Clause 11.02.

14.03: (a) Coverage for the above benefits will cease on the last day of the month in which the employee has been laid off or permanent lay-off, except for life insurance and AD&D insurance, which shall cease immediately. All benefits will cease immediately in the event of termination for just cause, retirement or an employee quitting. (b) Employees may extend coverage for up to three months in the event of a layoff at the expense of the employee.

14.04: Safety Vision Care. $300.00 benefit for safety glasses will be granted on a rolling 24 month calendar when the employee submits the original receipt and certification for the protective eye wear and or for use by direct family members only in relation to vision care.

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Article 15- Pension Plan

15.01 Employees who have attained two years of seniority shall be eligible to participate in the Company Pension Plan under the terms and conditions of that plan.

Article 16- Safety and Health

16.01: it is understood and agreed the parties to this agreement shall at all times comply with the Occupational Health and Safety Act and all its regulations.

16.02: A Safety Committee will be established, comprising of not more than four (4) members. Two of the Committee members shall represent the employees and two of the members will be selected from management, The Committee will have its own Charter describing its role and responsibilities.

16.03: The Company shall be reimbursed employees upon presentation of appropriate receipts up to eighty­five dollars ($85.00) for the first year of this Collective Agreement for safety footwear. Such footwear must confonm to the standards established by the Company.

16.04: Effective the second year of this Collective Agreement the Company shall reimburse employees upon presentation of appropriate receipts up to One hundred and twenty five dollars ($125.00) for safety footwear. Such footwear must conform to the standards established by the Company.

Article 17-Grievance Procedure

17.01: A "grievance" shall mean any dispute between employees, group of employees.or the Union and the Company regarding the interpretation, application or alleged violation of this Agreement.

17:02: For the purposes of detenmining time limits in the following grievance and arbitration

procedures, Saturdays, Sundays and General Holidays are excluded.

17.03: No complaint or grievance may be submitted or considered under the grievance procedure unless it has been presented at Step One within five (5) working days firom the time of the occurrence of the incident giving rise to the grievance. In the event of an incident giving rise to a grievance originating while the employee is on approved leave of absence from work, such grievance must be judged within five (5) working days of the employee's return to work.

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17.04: The Grievance procedure follows these steps:

Step One· Complaint Stage

As per Article II .03 with five (5) working days after the cause of a grievance manifests itself, the griever shall attempt to resolve the dispute with his immediate supervisor.

Step Two

If the griever and his immediate supervisor are unable to resolve the matter within five (5) working days of the employee notifying the supervisor of the grievance, the griever and/or the local Union Steward may, within the ensuing five (5) working days submit the grievance in writing to the Plant Manager stating allegations and redress sought. The Plant Manager shall provide a written response within five (5) working days of receipt of the written grievance.

Step Three

If the griever and/ o r the local Union Steward and the Plant Manager are unable to resolve the matter at Step 2, the Union Business Agent shall notify the Operations Manager in writing and the two shall meet as soon as practical to discuss the matter. The Operations Manager or his designate will provide his decision regarding the matter in writing within five (5) working days following the meeting.

17.05: Failing settlement under Step Three above, of any difference between the parties arising from the interpretation, administration, application or alleged violation of this Agreement including any question as to whether a matter is arbitral may be taken to arbitration provided that the request to submit the matter to arbitration is received by the other party within ten (10)working days of the decision in Step Three being given. If no written request for arbitration is received within ten (1 0) working days after the decision in Step Two has been given, it shall be deemed to have been abandoned.

17.06 : A grievance concerning general application or interpretation of the Agreement including the question of whether a matter fails within the scope of this Agreement or which affects a group of employees or the Union, may be refenred directly to the Plant Manager by the Shop Steward or the Union's Business Agent.

17.07: A grievance that an employee has been discharged without just cause may be initiated at Step Two. Grievances may not be presented in connection with the discharge or layoff of a probationary employee or student unless discrimination for Union activity is alleged.

17.08: The time periods designated in the grievance procedure may be extended by mutual agreement and shall be confirmed in writing. A request for an extension of time lines by either party shall not be unreasonably denied.

17.09: Where discipline is being given out to an employee, that employee has the right to be represented by the Union Steward unless he refuses such assistance,

17.10: Employees including the Union Steward shall not suffer a loss of pay while participating in the grievance procedure during his scheduled working hours. This shall not apply in to attendance at aribitration.

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17.11: Questions or grievances will go through Standard chain of command (Direct Supervisor, Production Manager, Plant manager) then can be escalated to Director of HR, and finally escalated to VP of Operations or appropriate senior manager. The Director of HR will determine who will the grievance needs to be addressed with and how to proceed.

Article IS-Arbitration

18.01: Subject to the time limits specified in Article 17.05 above, in the event that a grievance or a dispute involving the application, interpretation, or administration of this Agreement is not settled through the grievance procedure, such matter shall be the subject of Arbitration in accordance with the procedure set out below. No matter may be submitted to arbitration which has not been properly carried through the proper steps of the Grievance Procedure.

18.02: When either party requests that a dispute be submitted to a single Arbitrator as herein before provided, it shall notify the other party in writing within the time limits specified under Article 17.05 and at the same time name three individuals to serve as an arbitrator. Within five (5) full working days thereafter the other party shall either accept one of the three nominees or suggest three individuals as a alternatives.

In the event that the parties are unable to agree upon a single Arbitrator with in a period of ten (1 0) working days following the date of the second parties response either party may then request the Ontario Labour Relations Board to appoint an arbitrator.

The time limits fixed in this Arbitration procedure may be extended by mutual agreement and shall be confirmed in writing.

18.03: 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. The Arbitrator, however, shall have the power to vary or set aside any penalty or discipline imposed relating to the grievance then before the Arbitrator,

18.04: Unless agreed to by the parties the Arbitrator shall render a decision within thirty (30) days of the final day of a hearing into the matter before the arbitrator.

18.05: The proceedings of the Arbitration will be expedited by the parties hereto, and the decision of the Arbitrator will final and binding upon the parties hereto and the employee concerned.

18.06: Each of the parties hereto will bear equally the expenses of the arbitrator appointed under this provision

18.07: The parties hereto may agree to submit a matter in dispute to mediation as an alternative to arbitration provided the matter is considered timely under the above provisions.

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Article 19. Wage Schedule:

The following wages shall come into effect on the day following the elate of ratification:

Class

2

Position(s) Rate

Entry Level: Wrapper/Packaging $15.71 Block Cutter

Semi-Skilled: Quality Assurance Stucco Karrier

Stacker Slitter/Bender Shipping Receiving

$16.85

3 Trimless Ends $17.36- ?$17.87-$18.38-$18.89-$19.38 Operator: Embossing Coil Coil Man Saw, Press Roll Forming Mills

4 Skilled: Laydown Multi-skilled $21.01

Class 1 to Class 2 Training Rate $16.21

Note: The entry level for Class 3 is in Trim less Ends.

19.01- General Increase:

April30, 2016 -April30, 2017 May 1, 2017- April30, 2018 May 1, 2018- April30, 2019 May 1, 2019- April 30, 2020 May 1, 2020- April 30, 2021

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Non-Red Circled Employees -1st year $0.50(cents) _ 2nd year $0.50(cents) _ 3rd year $0 .50( cents) _ 4th year $0.50(cents) _ 5th year $0.50(cents) _

All Red Circled Employees $0.25( cents) $0.00(cents) $0.25(cents) $0.00(cents) $0.25(cents)

Article 20- Duration

21.0 I This Agreement shall continue in effect from April30'"· 2016 to April30'"· 2021 and shall continue in full force from year to year thereafter unless either party gives notice to the other party of its intention to enter into negotiations for the purpose of amending the agreement, within a period of not less than thirty (30) days and not more than sixty (60) days prior to any expiration date, unless by mutual agreement.

Dated this :)_ ~ day of :fZ. \, A , 2016 at Caledon, Ontario. I

FOR THE COMPANY:

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Collective Agreement Between

International Association of Sheet Metal, Air, Rail and Transportation Workers

(1 of 3)

Letter of Understanding

(Hereinafter the "UNION") And

Kingspan Insulated Panels Ltd. Caledon, Ont. (Hereinafter the "Company')

Re: Profit Sharing/Employee Bonuses

It is understood and agreed to by the Union that the Company may at its sole discretion introduce a Profit Sharing Plan or like incentive or bonus plans outside of the terms and conditions of this Agreement, at any time during the life of this agreement. The introduction and maintenance of such a plan will be at the sole discretion of the Company and it will have the unilateral right to change or amend such plan, including discontinuing the plan at any time. Payments made under such a plan, if any, shall not be subject to the grievance procedure.

Dated this 20 day of June 2016 at Caledon, Ontario.

For the Company:

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Collective Agreement Between

International Association of Sheet Metal, Air, Rail and Transportation Workers

(Hereinafter the "UNION") And

Kingspan Insulated Panels Ltd. Caledon, Ont. (hereinafter the 'Company")

(2 of 3)

Letter of Understanding

Re: Labour Management Meetings

The parties agree to convene a Labour Management meeting every .calendar quarter to discuss the state of the business and any issues of general interest. These meetings will not be used to discuss any issue that is subject to the grievance/arbitration procedure.

Dated this 20th_day of June, 2016 at Caledon, Ontario.

For the Company:

Collective Agreement Between

International Association of Sheet Metal, Air, Rail and Transportation Workers

(3 of 3)

Letter of Understanding

(Hereinafter the "UNION") And

Kingspan Insulated Panels Ltd. Caledon, Ont. (Hereinafter the "Company")

Re: Quarterly Company Presentations

The Company CJilrees to oonduct quarterly open forum meetings, hosted by seniormanCJilement to dSa.iss the general interests of the employees and to encourage a positive workplace environment. Such meetings/presentations are open to employees, supervisors and managers.

Dated this 20th_day of June,2016 a

For the Company:

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