TABLE OF CONTENTS

Article No. Subject Page No. Agreement .....................................................1I Definition .......................................................1II Recognition ...................................................1III Management .................................................6IV Hours of Work ..............................................7V Holidays ......................................................12VI Grievance Procedure .................................14VII Wages ..........................................................19VIII Vacations .....................................................26IX Jury / Bereavement ....................................32X InsuranceBenefits ......................................33XI Pensions .......................................................36XII Seniority ......................................................39XIII Safety and Health .......................................53XIV Co-operative Wage Study ..........................58XV Training and Education .............................59XVI Duration and Negotiations ........................65 Job Title and Job Classes ..........................67 Smithville Wage Scale ................................67 Bagging Material Incentive .......................68 Exhibit A – Policy for Manpower Allocation for Scheduled Absences ...........69 Exhibit C – Bid on Company Items for Sale ..............................................71 Exhibit D – Other Work Practices............71 Signatures ...................................................72

AGREEMENT

This agreement dated this 20th day of June, 2016, between HarbisonWalker International, Inc., for its Smithville, Ontario Works (hereinafter referred to as the Employer) and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, on behalf of Local Union #16506-33 (hereinafter referred to as the Union) is as follows: The Collective Agreement shall be continued for 3 years except as otherwise provided below:

ARTICLE I – DEFINITION

1.1 The word “employee” used in this agreement per O.L.R.B. file No. 1608-82-R dated December 10, 1982, shall include all employees at the Smithville, Ontario plant save and except Foreman, persons above the rank of Foreman, Office and Sales staff and Technical Engineers. For purposes of clarity the board notes that positions of Process Controllers, Laboratory Chemists and Ceramic Engineer are excluded from the bargaining unit.1.2 The excluded “employees” shall at no time be substituted for assigned bargaining unit employees except in cases of emergency and for the purpose of instruction.

ARTICLE II – RECOGNITION

2.1 It is the intent and purpose of the parties hereto that this Agreement shall promote an improved industrial

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and economic relationship and to set forth herein the basic agreement covering rates of pay, hours of work and conditions of employment to be observed by the Parties hereto. This Agreement is for the exclusive joint use and benefit of the contracting parties and the provisions herein defined and set forth shall be construed as binding upon and effective in determining the relationship between the parties hereto.

2.2 (a) It is mutually understood that the following terms and conditions relating to the employment of employees covered by this Agreement have been decided upon by means of collective bargaining, and that the following provisions will be binding upon the Employer and the Union during the term of this Agreement and any renewal thereof.

(b) This Agreement may be modified by mutual consent in writing by the Parties hereto.

(c) The provisions of this Agreement shall be subject to any changes made necessary by reason of Provincial Legislation which would effect the terms and conditions of this Agreement.

2.3 (a) The Employer recognizes the Union as the sole collective bargaining agent for the employees defined above. The Company and the Union agree that there will be no discrimination against any employee contrary to the Ontario Human Rights Code, 1981. Every employee has

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the right to equal treatment by the Company with respect to all aspects of the exercise of managerial authority by the Company, which equal treatment shall be without discrimination because of race, ancestry, place of origin, color, ethnic origin, citizenship, creed, religion, political affiliation, sex, record of offenses, age, marital status, handicap, sexual preference, and membership or office in the Union.

(b) The Union agrees not to intimidate or coerce employees of the Employer into membership, or to solicit membership on the Employer’s time.

2.4 (a) Inasmuch as the labour law requires the Union to act as bargaining agent for all employees as described in Article I hereto and inasmuch as all employees automatically are entitled to any service and/or benefits resulting from such bargaining, it is agreed that each employee who, on the effective date of this Agreement, is a member of the Union and each employee who becomes a member after that date shall, as a condition of employment, maintain his membership in the Union.

Each employee hired after the effective date of this Agreement shall, as a condition of employment beginning on the 31st day following the beginning of such employment, acquire and maintain membership in the Union.

(b) The Employer shall deduct from the earnings of each employee every pay period union dues, fees and

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assessments in the amount certified by the Union and shall remit such deductions prior to the fifteenth (15th) day of the month following to the person designated by the International Union.

The remittance shall be accompanied by a statement showing the name of each employee, in alphabetical order by surname from whom deductions have been made, Social Insurance Number, the total deducted, gross earnings, the actual dues separate from the additional cents per hour deduction, and hours worked for the four week period. Such statements shall also list the names of the employees, including Social Insurance Number, from whom no deductions have been made, along with any forms required by the International Union. A copy of all information shall be sent to each local union in scannable format and where possible, in electronic format. The Employer agrees to record the total union dues deductions paid by each employee on his/her T-4 Income Tax Receipt.

All deductions shall be forwarded promptly to the address on file with the Company.

(c) In addition to the above, the Employer will deduct from each employee member the amount of dues in arrears, if any. These dues shall be deducted at one time in addition to the Employee’s current dues.

(d) The Company agrees to have new employees sign a “Check-off Authorization” card when they are hired.

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Company to allot up to 45 minutes for an elected Union committee person to orient new hires prior to performance of work.

(e) The blank cards will be furnished to the Company by the Union. Authorization shall be witnessed by an Officer, Chief Steward or Steward of the Union or by a Representative of the Company and shall be signed, in duplicate, one copy being held by the Company and the other by the Union.

(f) The Union shall indemnify and save the Employer harmless against any and all claims, demands, suits or other forms of liability that shall arise out of or by reason of action taken or not taken by the employer in the reliance upon written authorizations furnished to the Employer by the Union or for the purposes of complying with any of the provisions of this Section.

2.5 (a) An authorized representative of the Union may, with the consent of the Superintendent, which consent shall not be unreasonably withheld, visit the establishment covered by this Agreement during the working hours, but must not hinder or interfere in the progress of the work.

(b) Elected/Designated Union executives requesting Union leave will not be unreasonably denied.

(c) Company to provide space to conduct Union/Company business.

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2.6 Steelworkers Humanity Fund

The Company agrees to divert from the first COLA payment (effective April 1988) the amount of one (1) cent per hour on which COLA is paid from the wages of all employees in the bargaining unit and in the month following each calendar quarter, to pay the amount so deducted to the “Humanity Fund” and to forward such payment to the United Steelworkers of America, National Office, 234 Eglinton Avenue East, Toronto, Ontario M4P 1K7 and to advise in writing both the Humanity Fund of the aforementioned amount of such payment and the names of all employees in the bargaining unit on whose benefit such payment has been made.

ARTICLE III - MANAGEMENT

3.1 It is understood and agreed that the operation and management of the establishment covered by this Agreement, the direction and supervision and control of the work and the working force and the right to hire and discharge for just cause shall rest exclusively in the hands of the Employer according to this Agreement. The Union shall not in any way abridge this right.

3.2 (a) No strike or lockout shall occur at the establishment covered by this Agreement during the life of this Agreement and continuous kilns shall be maintained at all times at a temperature which will result in no loss of wear or damage

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to the kilns and periodic kilns under fire shall be burned off.

(b) The Union agrees that it will not authorize any work stoppage or slow down during the life of this Agreement and that in the event any employee or group of employees who are members of the Union violate the terms of this Section, such member or members will be disciplined by the Union after being found guilty by a fair trial.

(c) In further consideration of the mutual promises contained herein the parties hereto expressly agree that neither party shall bring, or cause to be brought, any court or other legal or administrative action against the other until the dispute, claim, grievance or complaint shall have been brought to the attention of the party against whom it shall be made and the said party after actual notice of the same shall, within a reasonable time, fail to take steps to correct the cause of circumstances giving rise to such dispute, claim, grievance or complaint.

3.3 The employer shall not be hindered or prevented from using any type of machinery, tools or appliances, and may secure this equipment or any materials from any source without interference.

ARTICLE IV - HOURS OF WORK

4.1 (a) The regular work day shall consist of eight (8) hours exclusive of lunch time.

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(b) The regular work week shall consist of forty (40) hours. The work week shall begin at 12:01 a.m. on Monday.

(c) Weekly work schedules will be posted by 11:00 a.m. on the Thursday prior to the upcoming week.

4.2 Time and one-half shall be paid for:

(a) All time worked in excess of eight (8) hours in any twenty-four (24) hour period beginning with the employee’s regular starting time and, all time worked in excess of forty (40) hours in any one week.

(b) All time worked on the ten (10) Holidays set forth in Article V by an employee who does not qualify for Holiday pay.

(c) All time worked on the first eight hour shift other than an employee’s assigned shift except when the employee is returned to his assigned shift in the week and a premium is paid on the returning shift pursuant to (a) above. Subsequent shift changes in the week to other than the employee’s assigned shift will be paid in the same manner.

4.3 For the purpose of computing overtime on the sixth and seventh consecutive days of the work week the said ten (10) legal holidays set forth in Article V shall be considered as days worked whether worked or not.

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4.4 (a) Work performed by employees on Sundays shall be paid for at the rate of two (2) times the regular rate of pay.

(b) All work performed on Saturday where a premium is not applicable, shall be paid at time and one quarter rate of pay.

(c) Only for the purpose of determining the seventh (7th) day worked, any day preceding the seventh (7th) day on which any work is performed shall be counted as a day worked.

4.5 Any employee laid off on their regular scheduled work day so as to return later in the day or in the week shall be credited with such laid off time for the purpose of computing overtime. The above shall not apply in case of breakdown or other causes beyond the control of the Employer.

4.6 In the event normal operations at the plant are reduced, the Employer agrees, upon request of the Union, to meet with the Union in an effort to establish suitable work week schedules.

4.7 (a) Unless given official notice to the contrary at least eight (8) hours prior to the employee’s next turn, or pursuant to instructions on any designated turn, an employee shall be guaranteed at least four (4) hours

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pay or four (4) hours work which he is capable of doing at his regular rate unless causes beyond the control of the Employer prevent operations.

(b) An employee called back to the plant fifteen (15) minutes after the completion of their regular shift, and before the scheduled starting time of their next regular shift, to perform work, shall be guaranteed a minimum of four (4) hours pay at straight time. If applicable overtime provisions of this Agreement entitled the employee to an amount greater than this minimum guarantee, the employee will be paid the greater amount.

(c) The equivalent of one straight time hour of pay shall be paid to employees who are required to make an additional trip to work under Article 4.7 (a) or (b).

4.8 (a) Nothing contained in this Article IV shall be, in any way, construed as a guarantee of hours of work per week or per day.

(b) Premium pay for work performed on the “legal holidays” shall not be credited against weekly overtime.

(c) No employee shall be paid both daily and weekly overtime for the same hours so worked. However, in the event an employee is paid overtime on a daily basis due to a change in shift and the employee is required to work on the sixth or seventh day, then in such event, the premium pay for daily overtime shall not be counted against premium pay

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for the sixth or seventh day worked. This shall not apply in cases where an employee doubles over from one shift to the next to fill vacancies.

(d) A meal allowance of $11.00 will be paid to employees who are required to work more than four (4) hours of daily overtime which was not scheduled prior to the beginning of their shift.

4.9 Employees may have the privilege of exchanging shifts or days off for the purpose of conducting necessary personal business provided that:

1. They obtain the consent of Management in advance in writing; and

2. (a) The change is accomplished without additional cost or penalty to the Company;

(b) In order to accomplish such change without additional cost to the Company, employees must waive overtime or other premium payments by individual arrangements (except premium pay as required by either Federal or Provincial laws). Such waiver shall be specified in writing on a form provided for the purpose and signed by the employee, a committeeman and the employee’s foreman.

4.10 Pay Period will commence 12:01 a.m. on Sunday.11

4.11 A 10 minute paid break will be provided for every complete four (4) hours worked.

ARTICLE V – HOLIDAYS

5.1 Effective on the date of this agreement and for contractual purposes, the following days shall be considered holidays:

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

5.2 When an employee: (a) performs work on any day within a thirty (30) day period immediately preceding the holiday, and (b) has worked their last scheduled work day before the holiday and their first scheduled work day following the holiday, the employee shall be compensated for such holiday as hereinafter provided.

5.3 HOLIDAYS UNWORKED

(a) If such eligible employee does not work on the holiday, the employee shall be paid eight (8) times the applicable straight time hourly rate of the job in which the employee is classified (in the case of a piece worker, the employee shall be paid his average daily earnings for the

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two pay periods the employee worked preceding the week in which the holiday is observed) exclusive of shift and overtime premiums; provided; however,

(b) that if such eligible employee has been scheduled for work on any such holiday, but fails to report and perform their scheduled or assigned work, the employee shall become ineligible for pay for such unworked holiday.

(c) In the event a holiday falls during an employee’s vacation period, the employee shall be entit1ed to their unworked holiday pay in addition to their vacation pay provided permission is granted at least one (1) day in advance by their supervisor and employee may take a day off in lieu of such holiday. Such days may not be scheduled more than one consecutive day at a time and may not be carried from one calendar year to the next. This day would not necessarily be an extension to a vacation period.

5.4 HOLIDAYS WORKED

(a) If such eligible employee works on a designated holiday, the employee shall receive their holiday pay as set forth in Section 5.3 of this Article and, in addition, shall receive double (2x) their regular rate of pay for hours worked and/or pieces handled.

(b) For the purpose of this provision, the holiday shall be deemed to be the 24 hours beginning with the shift change time nearest 12:01 a.m. of the holiday.

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(c) For the purpose of this Article, working the scheduled work day immediately preceding and the next following the holiday shall mean performance of work for their scheduled working day unless the employee has failed to perform such work because of sickness or because of death in the immediate family or for causes beyond their control.

(d) The Employer agrees that it will not schedule work on a holiday for the purpose of avoiding payment of weekly overtime.

ARTICLE VI - GRIEVANCE PROCEDURE

6.1 The Employer shall deal with a Committee of not less than two (2) plus the griever elected from among the employees which shall be known as the Grievance Committee.

6.2 (a) Should differences arise between the Employer and the Union or its members employed by the Employer as to the meaning and application of the provisions of this Agreement, there shall be no suspension of work on account of such difference but an earnest effort shall be made to settle immediately such difference in the following order, and when a joint decision is reached at any stage of the procedure, such decision shall be reduced in writing and signed by the Parties and thereafter such decision shall be binding upon both Parties in the case, and the case may not

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be reopened except by mutual agreement.

(b) At their request the Company will make a reasonable effort to excuse shop stewards for a reasonable time (up to 15 minutes) for the purpose of investigating grievances without undue interruption of production or efficiency.

(c) The Employer agrees that in the event it becomes necessary for it to call a grievance meeting it will pay the employees for the time spent in such meetings.

(d) Union Representatives will be paid for time in grievance meetings. Grievances shall be taken up in the following manner:

Step 1 The grievance shall be settled by the one who is aggrieved, the foreman of the department involved, and with or without the aid of the department committeeman within two (2) working days, excluding Saturday, Sunday and Holidays, from the date of occurrence of the incident giving rise to the grievance in order to be considered by the Company under the grievance procedure. If a complaint or request has not been satisfactorily resolved in Step 1, it shall be prepared in writing and processed in Step 2 below.

Step 2 Grievances will be presented in writing setting forth the nature of the grievance and signed by a Grievance Committeeman and the aggrieved within five (5) working days from the date that the first step answer is given. Any

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grievance not presented in writing within five (5) working days after receipt of the first step answer will be considered settled on the basis of the answer given in the first step. The second step meeting shall be held no later than five (5) working days after the receipt of the Union request. Grievances in this Step 2 will be answered in writing by the Superintendent of the department or his designated representative within ten (10) working days after the meeting. The second step meeting shall be between the employee who may be present, the Grievance Committee and the Superintendent or his designated representative. The Company will make the grievance Committee whole for any scheduled work time lost up to a maximum of one-half (1/2) hour per grievance.

Step 3 Any request for a Step 3 meeting shall be made in writing by the Union within ten (10) working days after receipt of the Step 2 answer. Any grievance that is not appealed by the Union to the third step within ten (10) working days shall be considered settled on the basis of the answer given in the second step. The third step meeting shall be held no later than ten (10) working days after the receipt of the Union’s request. Management will answer the grievance by letter post marked within five (5) working days after the meeting and sent by expedited delivery. If management fails to hold a meeting within the time limits as provided in Step 2 and 3 or fails to answer within the time limits provided above (including mutually agreed to extension periods), it shall be deemed to constitute a granting of the grievance by the Company. Waiver by the Union as provided above due

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to the failure to process the grievance within the time limits or automatic granting of a grievance by the Company due to failure to render a decision within the prescribed time limits shall not constitute a binding precedent upon either party on the merits of the particular grievance, in the event of a later recurrence of any situation which gives rise to the grievance so waived or automatically granted.

The third step meeting shall be between the International Union Representative, the Grievance Committee, and the Company, Vice President and/or his authorized representative.

Step 4 In the event the grievance shall not have been satisfactorily settled by the foregoing procedure, the matter may be referred not later than fifteen (15) working days after receipt of the Company’s answer in Step 3 to an impartial arbitrator to be appointed by mutual agreement of the parties hereto, and the decision of the arbitrator shall be final and binding on all parties.

Step 5 If the Parties are unable to agree on an impartial arbitrator within five (5) working days, they may jointly or independently request in writing the Minister of Labour for the Province of Ontario to make an appointment of one. The arbitrator shall not have the right to amend, take away, add to or alter any of the provisions of this Agreement.

6.3 Any grievance involving discharge or suspension of an employee must be presented by the Committee to the

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Superintendent in writing within five (5) days from the date of discharge or suspension, or the same shall be null and void and if the case is not disposed of within ten (10) days from the date of discharge or suspension, it shall thereupon be submitted to an arbitrator selected as provided in 6.2 Step 4 and 5 above. In the event it should be decided under this Agreement that an injustice has been dealt to the employee with regard to a discharge or suspension, the Employer shall reinstate such employee and pay full compensation at the employee’s regular rate for the time lost.

6.4 Any fee, salary or expenses, incident to the services of an arbitrator acting pursuant to this Agreement, shall be paid equally by the Employer and the Union.

6.5 An employee whom the Company discharges or whom it contends has lost their seniority under Section 12.13 (a), (b) or (c) shall be retained at or returned to active work until any grievance contesting such discharge or break in service question is finally resolved through the grievance and arbitration procedure. However, the employee may be removed from active work (without pay) until the resolution of the grievance protesting the discharge, if his alleged cause for discharge or termination presents a danger to the safety of employees or equipment in the plant area or is due to fighting, theft, concerted refusal to perform their assigned work, deliberately destroy and abuse Company property, possess weapons on Company property, threaten, intimidate, coerce or interfere with employees or supervisors, or restrict output or intentionally have a work

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slow down.

Grievances involving employees who are retained at work under this provision will be handled in the Expedited Arbitration Procedure unless the Union Staff Representative and the Division Manager of Labour Relations mutually agree otherwise. If the arbitrator upholds the discharge or break in service under Article XII, Section 12.13 of an employee retained at work, the penalty shall be instituted after receipt of the arbitration decision.

ARTICLE VII – WAGES

The wage rates and classifications are set out in Schedule “A” attached hereto and made a part of this Agreement and shall reflect the following general wage increase.

7.1 (a) Effective June 20, 2016, the wage rate schedule set forth in this agreement shall remain in effect to June 19, 2019;

(b) Effective upon ratification, a $750 lump sum; (Employees will have the same option as in past negotiations to notify the Company of an RSP account in which they would like to have the lump sum transferred.);

(c) Effective June 20, 2017, the wage rate schedule set forth in the agreement shall be adjusted to reflect a general increase of an additional twenty cents ($.20) per hour.

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(d) Effective June 20, 2018, the wage schedule set forth in this agreement shall be adjusted to reflect a general increase of an additional twenty cents ($.20) per hour.

Note: During the term of this Contract all employees covered by this Agreement will be paid the lump sum bonus on the effective date of the lump sum bonus pay out. The lump sum is not intended as compensation for services rendered in the past or to be rendered in the future.

7.2 There shall be an hourly shift differential for the second or afternoon shift of twenty-two cents ($.22) per hour, and twenty-seven cents ($.27) per hour on the third or night shift.

Shift differential shall be included in the calculation of overtime compensation.

Shift differential shall be paid for allowed time or reporting time when the hours for which payment is made would have called for shift differential if worked.

Shifts shall be identified in accordance with the following:

(a) Day shift includes all shifts regularly scheduled to commence between 6:00 a.m. and 8:00 a.m. inclusive.(b) Afternoon shift includes all shifts regularly scheduled to commence between 2:00 p.m. and 4:00 p.m.

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inclusive.(c) Night shift includes all shifts regularly scheduled to commence between 10:00p.m. and midnight inclusive.

Any hours actually worked by an employee on a shift which commences at a time not specified in the above paragraph shall be paid as follows:

(1) For hours actually worked which would fall in the prevailing “Day Shift” of the department, no shift differential shall be paid.(2) For hours actually worked which would fall in the prevailing “Afternoon Shift” of the department, the afternoon shift differential shall be paid.(3) For hours actually worked which would fall in the prevailing “Night Shift” of the department, the night shift differential shall be paid.

In cases where work is performed only by day shift workers (where no second shift is ordinarily scheduled), the shift differential will not be paid for work performed that extends into other shifts. If the hours so worked exceed four (4) hours, the shift differential shall apply.

7.3 It is recognized that changing conditions and circumstances may from time to time require the installation of new wage rates, adjustments of existing wage rates or modification of wage plans because of the creation of new jobs, development of new manufacturing processes, changes in equipment, changes in the content of jobs,

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or improvements brought about by the Employer in the interests of improved methods and products. Under such circumstances, the following procedure will apply.

(a) The Employer will develop by time study or otherwise, appropriate hourly incentive or piece work rates to propose to the Committee.

(b) The proposed rate will be explained to a Committee with the objective of obtaining its agreement to the installation of the proposed rate for a trial period to be mutually agreed upon by the Parties. This Committee shall be made up of representatives of the Union’s Shop Committee and the employees affected. The employer may thereupon install such proposed rate which shall remain in effect for the trial period and thereafter unless changed as provided in sub-section (c) below.

(c) When a rate has been established under this Section as provided in paragraph (b) above, and if the above mentioned Committee or the Employer decide that such rate does not bear a fair relationship to other jobs in the same establishment; either party, by notice to the other party at any time after one-half the trial period, may reopen the question. The question will then be settled by the grievance and arbitration procedure of this Agreement, and any change made through this procedure shall be effective as of the beginning of the trial period provided in paragraph (b) above. By mutual agreement, the parties at any time can adjust the length of trial periods or the trial rate in question.

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(d) Arbitration under this 7.3 shall be strictly limited to the rate in question and shall not be construed as a method of reopening the wage schedule. In the event the rate arising under this Section 7.3 is required to be submitted to arbitration, the arbitrator selected shall be a person familiar with the rating and timing of the jobs.

7.4 COST-OF-LIVING

Effective with the first pay period beginning in July, 1995 and at three (3) month intervals thereafter during the term of this Agreement, each employee shall receive a cost-of-living allowance as set forth below. The amount of said allowance shall be determined and re-determined as hereinafter provided and on the basis of the Consumer Price Index ¬Canada, published by Statistics-Canada (1961-100) and referred to herein as the “Index”. Should the Index referred to above be revised or discontinued, the parties shall attempt to adjust this clause, or, if any agreement is not reached, the parties shall request Statistics¬ Canada to provide an appropriate conversion or adjustment which shall be applicable as of the appropriate adjustment date and thereafter.

(a) Factor - The allowance shall be one cent ($.01) for each 0.5 change in the Index.

(b) Base Period – December, 1989

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It is understood that cost-of-living adjustments may be made either upward or downward, but that no decline in the Index shall result in a decrease of the base rates of pay. Only the COLA float will be adjusted accordingly.

(c) Roll-In - Roll-in COLA float as of June 20, 2016.

(d) Clock Hour Add-On - The Cost-of-Living allowance shall be a clock hour add¬ on and shall not be included in the calculation of incentive pay. The Cost-of-Living clock hour add-on shall be added to all hours for which compensation is paid. To continue present plan with a maximum payout of twenty cents ($.20) per hour for each year of the contract.

(e) Adjustments - First adjustment effective with the first pay period in January and future adjustments on the first pay period in April, July, October and January, thereafter.

(f) Determination of allowances during the term of this Agreement and adjustments in the Cost-of-Living allowance shall be as follows:

Effective Date of Adjustment Based on Change (Upward or Downward) in Index

January August (Published in September) and November (published in December)April November (published in December) and February (published in March)July February (published in March) and May (published in June)October May (published in June)

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and August (published in September)

7.5 Temporary Transfers - Employees reporting to work to perform work on their assigned jobs shall be paid as follows if transferred to another job from their assigned job:(a) If transferred to a higher rate of pay job, such rate will apply for only the hours worked on the higher rated pay job.

(b) If transferred to a job paying a lower rate of pay they shall continue to receive pay at the rate of their assigned job for the hours worked in such job during their regular eight (8) hour shift.

7.6 Management will implement a direct deposit system for payroll purposes.

7.7 The Company agrees that for the term of this collective agreement it will set up a program whereby employees may direct that a portion of their wages be deposited directly to an R.R.S.P account. The program shall have the following characteristics: Employees will have the option to provide the Company with a written direction once in each calendar year.

The direction, and all of terms of the direction, shall be irrevocable for one (1) calendar year.

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At the end of each calendar year, the direction shall on its terms become null and void, and the employee will be provided with the option of providing the Company with a direction for the following year.

The program will commence on January 1, 2001.

ARTICLE VIII - VACATIONS

Subject to such other conditions of this article as may be applicable, all employees covered by this Agreement shall be entitled to a vacation period with vacation pay on the following basis:

8.1(a) An employee who has completed twelve (12) months of employment shall be entitled to two (2) weeks off and vacation pay amounting to four percent (4%) of their gross earnings for the time worked from date of hire to December 31st of the year hired.

(b) Any employee with three (3) years but less than five (5) years of seniority as of January 1 of the then current calendar year shall be entitled to two (2) weeks off and vacation pay amounting to four and one-half percent (4 1/2%) of his gross earnings for the immediate previous year.

In the event, however, an employee’s fifth year (5th) anniversary date of employment occurs during the then

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current calendar year, the employee then shall be entitled to receive following their anniversary date an additional week off and additional vacation pay amounting to two percent (2%) of their gross earnings for the immediate previous year.

(c) Any employee with five (5) years, but less than thirteen (13) years of seniority as of January 1 ofthe then current calendar year shall be entitled to three (3) weeks off and vacation pay amounting to six and one-half percent (6 1/2%) of their gross earnings for the immediate previous year.

In the event, however, an employee’s thirteenth (13th) anniversary date of employment occurs during the then current calendar year, the employee shall be entitled to receive, following their anniversary date, an additional week off and additional vacation pay amounting to two percent (2%) of their gross earnings for the immediate previous year.

(d) Any employee with twelve (12) or more years of seniority as of January 1 of the then current calendar year shall be entitled to four weeks off and a vacation pay amounting to eight and one-half percent (8 1/2%) of their gross earnings for the immediate previous year.

In the event, the employee’s 20th anniversary date of employment occurs during the then current calendar year,

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the employee shall be entitled to receive, following their anniversary date, an additional week off and additional vacation pay amounting to 2 1/2% of their gross earnings for the immediate previous year in addition to the four (4) weeks and a vacation pay amounting to 8 1/2% as specified in paragraph (d).

(e) Any employee with twenty (20) or more years of seniority as of January 1 of the then current calendar year shall be entitled to five (5) weeks off and a vacation pay amounting to eleven percent (11 %) of their gross earnings for the immediate previous year.In the event, the employee’s twenty-fifth (25th) anniversary date of employment occurs during the then current ca1endar year, the employee shall then be entitled to receive, following their anniversary date, an additional week off and additional vacation pay amounting to two percent (2%) of their gross earnings for the immediate previous year.

(f) Any employee with twenty-five (25) or more years of service as of January 1 of the then current calendar year shall be entitled to six (6) weeks off and a vacation pay amounting to thirteen percent (13%) of their gross earnings for the immediate previous year.

It is understood that the Company may at its option pay for the sixth (6th) week of vacation in lieu of time off.

8.2 (a) Any employee, who is on lay-off, sick leave,

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leave of absence or for any other reason, is not actively employed as of January 1 of the then current calendar year, shall be entitled to a vacation with pay in accordance with the terms of the Article. Where employment terminates before a twelve (12) month period of employment has been completed or where an employee has not been given a vacation or payment in lieu thereof, the employee is entitled to receive vacation pay equal to four percent (4%) of the total wages that the employee has earned in any twelve (12) month period thereof.

(b) Any employee excluding a first year employee who is on lay-off as of January 1 of the then current calendar year and who has performed no work during the immediate preceding calendar year shall be entitled to receive a vacation in the calendar year in which the employee returns to work after working fifteen days in accordance with the terms of this Article. Such vacation pay to be based on the appropriate percent of their gross earnings for the twelve consecutive months worked prior to layoff.

(c) Employees with at least one year of service who have worked 1,000 or more hours during the previous calendar year shall be paid not less than forty (40) hours pay at base labour rate per week of eligible vacation.

8.3(a) Vacations shall be taken between January 1 and December 31 following. Vacation pay to be given to the employee at the time the employee takes his vacation

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except where otherwise mentioned. So far as possible, vacations will be granted at the time most desired by the employee, but the final right to allotment of vacation period is exclusively reserved to the Employer in order to insure orderly operation of the operation covered by this Agreement. All vacations for the current calendar year shall be scheduled by March 31, for the current vacation year on the basis of seniority and the provisions of the preceding paragraph. Vacations not scheduled by March 31 will be allocated by Management as requests are received on “first come”, “first serve basis”, and the Company to confirm scheduled vacation in writing by April 30th of that year. Vacation scheduling will be reviewed and discussed with the Union prior to the next vacation season.

(b) An employee who voluntarily quits or is discharged after January 1 of the then current calendar year, but before their actual anniversary date of employment occurs, shall be entitled only to that amount of vacation pay to which the employee was entitled, prior to their actual anniversary date.

8.4 Vacations may not be waived by an employee and an additional pay be received for that period,but during a period of emergency any employee deemed necessary in the Employer’s operations may, by mutual agreement between the employee and the Employer, forego their vacation, and in such event the employee shall be paid their vacation pay in addition to the pay earned during the

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period selected for their vacation.

8.5 Employee(s) who work less than 1000 hours in the previous calendar year may opt to waive part or all of their vacation. (Must be in block(s) of one week.)

8.6 If an employee is prevented from working for any calendar week as the result of illness or injury, for the purpose of computing their vacation pay, there shall be credited to the employee’s gross earnings, on which vacation pay is based, an amount equal to the number of calendar weeks the employee is prevented from working as the result of illness or injury times their average weekly earnings. Average weekly earnings in this Section shall be calculated by dividing the Employee’s gross earnings for any four pay periods preceding, but not including the pay period in which the employee goes off sick or injured, by the number of weeks covered by the same four pay periods. This section shall not apply if said illness or injury occurred more than a year prior to the anniversary date (as defined in this vacation article on which the current vacation is based).

8.7 In case of death of the employee, vacation pay otherwise due such employee shall be paid out to his next of kin.

8.8 An employee who retires will receive vacation pay on the earnings for the year in which he retires at the applicable percentage as outlined in 8.1 but in no case

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less than 4.0%.

8.9 Employees with at least two (2) weeks of vacation may split one vacation week per year, and these requests will be scheduled via seniority but will be given second preference.

ARTICLE IX - JURY / BEREAVEMENT

9.1 Any employee who is called for Jury Service shall be excused from work for the days on which the employee serves and the employee shall receive, for each such day of Jury Service, up to 10 days in one calendar year on which the employee otherwise would have worked, the difference between eight (8) times their average straight time hourly earnings (as computed for holiday purposes) and the payment the employee received for Jury Service. The employee must present proof of service and the amount of pay received therefore within 30 days following the completion of their Jury Service.

9.2 Funeral Allowance - In case of death of an employee’s immediate family (i.e. spouse, mother, stepmother, mother-in-law, father, stepchildren, grandchildren, stepfather, father-in-law, sister, sisters and brothers of employee’s spouse, brother, spouses of employee’s sisters and brothers, children and grandparents, aunts and uncles), the Company shall grant such employee up to a maximum of three (3) scheduled working days off with pay in connection with services for the deceased. For record purposes employees

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will confirm the name and relationship of the deceased on a form provided by the Company.

ARTICLE X - INSURANCE BENEFITS

10.1 Eligibility

Each permanent full time employee (excluding temporary employees and students) subject to this Agreement who has been actively engaged in employment by the Employer for a period of ninety (90) days (new employees after completion of ninety (90) days of active service), shall be entitled to group insurance benefits set forth in Section 10.2 subject to conditions set forth in Sections 10.3 and l0.4 of this Article.

10.2 Benefits for Employees

(a) Term Life Insurance (except Pensioned or Retired Employees) and Accidental Death and Dismemberment Insurance (Non-Occupational) The existing $28,000 of Term Life Insurance and Accidental Death and Dismemberment benefits shall be increased as follows: to $30,000 effective 6-20-16; $30,500 effective 6-20-17 and $31,000 effective 6-20-18.(b) Accident and Sickness Insurance (Non-Occupational) Will provide a benefit Level of 60% as Mandate by Law of the Employee’s Insurable Earnings at the then current U.I.C. Maximum

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1) Weekly benefits not to exceed a 39 week period.2) Benefits to be paid from 1st day for Accident and Sickness in hospital and 4th day for Sickness not in hospital.

For Employees and Dependants

(c) Effective January 1, 2017, the benefit programs described in “Attachment A” as “Smithville Insurance Plan” will become effective for hourly employees under this contract.

10.3 Termination and Retirement

(a) Upon discharge all forms of insurance will be terminated on the last day worked.

(b) At retirement and in the case of termination of active employment for reasons not otherwise specified in this section 10.3 all insurance will be terminated the last day of the month in which retirement or termination of active employment for reasons not otherwise specified in this Section 10.3 occurs.

(c) In case of layoff, authorized leave of absence (except to join the Armed Forces), Term Life, Accidental Death and Dismemberment, Supplementary Hospitalization expense, Comprehensive Basic Health, Major Medical and Dental Insurance will be continued to the last day of

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the second calendar month, following the month in which active employment terminates. Accident and Sickness Insurance will be terminated the last day of the calendar month following the month in which active employment terminated.

(d) In case of sick leave due to total disability, Term Life, Accidental Death and Dismemberment, Supplementary Hospitalization Expense, Comprehensive Basic Health and Major Medical insurance will be continued until the last day of the twelfth month following the month in which active employment was interrupted. Accident and Sickness insurance will be continued for a period of benefit eligibility, but in no case beyond the last day of the thirty ninth (39) week in which disability began. Dental insurance will be terminated the last day of the month in which sick leave due to total disability occurs.

(e) In case of recall from layoff, return from authorized leave of absence or sick leave, all forms of insurance will be reinstated upon return to full time employment without waiting sixty (60) days.

10.4 General Provisions

(a) The Employer shall pay the cost of the benefits provided by this Article.

(b) The Employer shall select the insurance carrier and

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shall retain all dividends, if any, to compensate for the cost of administering the plan.

(c) The Plan shall contain no provisions for individuals who become permanently disabled, except for those appearing in Section 10.3 (d).

(d) Benefits provided herein shall not be superimposed on any present benefits.

(e) The Employer reserves the right to eliminate or reduce any benefit of the Plan to the extent that a like benefit may be provided under Provincial Legislation and for which either the Employer or the employee is taxed.

(f) It is understood and agreed that the Group Insurance Program set forth herein is subject to all terms and conditions of the master contracts issued to the Employer by the selected insurance carrier and various medical service ¬organizations or Provincial Insurance Commission. If any differences shall arise between the Employer and any employee in regard to the interpretation or application of this Article, the same shall be settled under the terms of the grievance procedure of the labour Agreement.

ARTICLE XI – PENSIONS

11.1 The Parties hereto have adopted a Pension Program which is evidenced by a separate agreement, the terms and

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provisions of which are incorporated herein and made a part hereof.

11.2 Effective on 5/24/04, the benefit factor used for calculating monthly retirement benefits shall be as follows:

$30.25 for years of service prior to 1/16/94; and $33.25 for years of service after 1/16/94.

Any employee retiring with greater than 36 years of service shall have benefit calculations based on most recent years of service with the maximum years of service credit at 36 years.

11.3 Beginning with the payment of regular monthly Pension for normal retirement, 62/30 (effective February 1, 1989) or 55/20 retirement, there shall be paid an initial amount (herein called “Special Payment”) to eligible Employees. The Special Payment shall be an amount equal to thirteen (13) weeks of regular vacation pay computed in accordance with the Vacation Article of the Labour Agreement, less three (3) times the monthly pension amount.

(a) In the case of an Employee entitled to a vacation in the year of retirement, at the rate of pay for such vacation, reduced by the amount of the regular vacation pay received for the year of retirement.

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(b) In the case of an Employee who would have been entitled to a vacation in the year of retirement, except for such retirement, at the rate which would have been applicable if the employee had taken a vacation which terminated on the date of retirement.

(c) In the case of an Employee not in any event entitled to a vacation in the year of retirement, an amount of vacation pay computed by multiplying the existing base labour rate plus appropriate cost-of-living adjustment by 450 hours. In no event shall the amount of such a Special Payment provided in this Section 11.3 be less than the amount provided in subparagraph (c), less three (3) times the monthly pension amount.

Such Special Payment shall be payable no later than the first calendar month following the month in which retirement occurs.

11.4 The disability retirement benefit shall be three hundred and forty dollars ($340.00)

11.5 The new law concerning immediate vesting, once plan eligibility has been met, will be part of the pension plan.

11.6 Effective on or after February 1, 1989, any employee who shall have at least thirty (30) years of continuous service and shall have attained the age of sixty-two (62)

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or older shall be eligible to receive a Normal Retirement Pension upon retirement.11.7 An employee who is at least 62 years of age and has 36 years or more of service and retires, will be paid a Distinguished Service Bonus of a one-time payment of $3,000.

ARTICLE. XII – SENIORITY

12.1 (a) The principal of seniority shall be recognized in the establishment covered by this Agreement on the basis of the provisions hereinafter set forth in this Article XII.

(b) Super Seniority - Upon taking office, the President of the Local Union shall be credited with having top plant-wide seniority for the purpose of layoff and recall. Such credited seniority shall terminate when the President ceases to hold office.

For the application of this clause only a separate employee seniority list will be published with the employees in order of plant service. Should the President of the Local be affected by a layoff they will be allowed to use plant service to retain the employee in the plant. The president will displace the most junior employee.

12.2(a) The establishment covered by this agreement shall operate on a plant-wide seniority basis. An approved list of all employees according to their plant-wide

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seniority shall be a part of this Agreement. Such seniority lists shall show the employee’s name and original date that work was actually performed. The Union shall receive a copy of such seniority list within thirty (30) days from the signing of this Agreement and thereafter before the tenth of each month a list showing the names and hiring dates of any new employees that have been added to the seniority list.

Before hiring new employees in either Department, employees on layoff would first be considered provided they meet the Employment Standards for the department. An employee who goes to another department must go back to their department when called or lose accumulated seniority in that department.

(b) Employees who start work on the same day and same shift will be ranked by alphabet in regard to seniority.

(c) If one employee starts work on an earlier shift than another employee the same work day, the employee on the earlier shift will be most senior regardless of alphabet.

12.3 All new employees shall be regarded as temporary employees until they have accumulated one hundred twenty (120) calendar days (Probationary Period) from the date that work was actually performed. Such temporary employees may be discharged as exclusively determined by the Employer.

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The Company will be permitted to hire students for vacation fill-ins or other temporary openings from April 1 through August 31st each year. Such employees will not be entitled to any benefits other than those required by law. Such employees will have no rights to recall. Such employees hired after the ratification of thisAgreement will bepaid $15.00 per hour.

12.4 (a) Any employee who has been promoted to a supervisor job on or after the date of the first agreement between the Parties hereto was entered into, shall, when no longer required as a supervisor, be reinstated in their former job provided the employee returns within twelve (12) months to the bargaining unit and that their job seniority entitled the employee to such job.

12.5 When employees who have been laid off are called back to work, the last man laid off shall be the first taken back, except an employee working as a maintenance repairman. Notice to report for work shall be sent by registered mail and/or overnight courier and/or hand delivered to the last known address of the employee and a copy of said notice shall be furnished to the Union. The employee must notify the Company immediately upon receipt of notice of intent to accept recall. The employee must return to work no later than the first scheduled work day of the following week unless working elsewhere. In such event, the employee may delay return for an additional week if the other employer provides the Company with documentation that working

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notice is required ill urgent cases, junior employees in seniority may work until the notified senior employee reports and states that he will work the following day, in which case the junior employee may be laid off at the close of the working day.

12.6 Job Bidding

(a) When a vacancy occurs on any job covered by this Agreement or a new job is created, the Employer may fill the vacancy or new job on a temporary basis. At the time such vacancy or job is filled, the Employer shall post a notice of the vacancy or job for a period of five days. The Union shall receive a copy of the posting notice. Any employee desiring the posted job shall apply in writing within five days of the date of the posting. At the close of the five day period the job shall be assigned on the basis of seniority and qualification among the employees bidding. To be eligible for Q.C. and R & D, an employee must be a High School graduate. An employee shall have a reasonable trial period not to exceed thirty (30) days.

(b) If any dispute arises between the Employer and the Union regarding the qualifications of the employee to perform the work of the posted job, the Employer shall have the right to make a temporary assignment to fill the job until the dispute is settled under the grievance procedure of this Agreement.

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(c) Any employee who bids on a job posted under this bidding provision of this Article shall be obliged to take the job on which the employee bids if the employee is entitled to such job except that an employee who bids on a job may withdraw their bid in writing during the first three (3) days the job is posted.

(d) Any employee who secures a job through the bidding procedure of this Agreement shall be notified within twenty-four (24) hours after the bidding period closes that the employee is the successful bidder.

(e) The successful bidding employee shall then take over the duties of their new job on the second scheduled work day after the bidding period closed provided, however, that in the event there is a change in shifts by reason of the employee’s securing a new job, then such employee shall take at least a sixteen (16) hour rest period from the time they last quit work.

(f) In the event an employee is disqualified during their trial period the employee shall return to their previous job and the next senior qualified employee bidding shall be entitled to the job.

12.7 Any employee who acquires a job through the bidding procedure of this agreement, or who is permanently assigned to a regular classified job, shall remain on such job unless removed for one of the following reasons:

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(a) Age or disability, if an employee becomes unable to perform the duties of their particular job classification satisfactorily due to physical disability or infirmity, they may displace the junior employee in seniority in a job classification whose duties they can satisfactorily perform, provided the employee produces proof of such physical disability or infirmity and proves they can perform the job satisfactorily which proof is acceptable to both the Employer and the Union.

(b) Bidding on and receiving another job.

(c) Voluntary quitting.

(d) Job termination.

12.8 Reduction of Jobs(a) In the event it is necessary to reduce one or more jobs of the same classification such reduction shall be done on the basis of the last man hired in the classification shall be the first laid off, rather than by plant wide seniority. In the event plant wide seniority permits an employee to remain in the class due to the layoff of the junior employee in the class under plant-wide seniority, the senior employee’s classification seniority shall continue to accumulate on the basis as though no break in classification seniority had occurred.

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12.9 Reduction of Work Force and Layoff

(a) In the event a specific job or jobs are shutdown and work is suspended on such job or jobs for a period up to and including two (2) consecutive scheduled working days, such period shall be considered a temporary shutdown and shall not be considered a layoff.

(b) Any employee who is not working at their regular job because of the temporary shutdown of this job shall be offered other work, if available, on their regular shift, in accordance with their plant-wide seniority among the employees on such shift.

(c) No employee, however, shall displace another employee holding a bid on job or a regularly assigned job through seniority rights for the period of the temporary shutdown.

(d) In the event an employee holds a bid job and such job works fewer days than the scheduled work week, for a period of two consecutive weeks, such employee may file a grievance and request consideration for assignment to a job that will provide regular days of work equal to the scheduled work week. Such consideration shall be based upon the employee’s plant-wide seniority standing.

(e) In the event a specific job or jobs are shutdown and work is suspended on such job or jobs for a period of more

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than two (2) days up to and including five (5) days such period will be considered a temporary layoff, the same as defined in 12.9 (a) until such time in this period that an employee will be required to lose a days work.

(f) The Company agrees that when any regular employees are on layoff or working short work weeks, any work normally performed by members of the bargaining unit shall not be contracted out, provided the Company has the necessary equipment available and the work can practicably be performed by qualified employees available in the unit. The Company agrees for such work, it will advise the Union in advance of contracting out work.

12.10 (a) In the event an employee is not working at their regular job because their job is: (1) abolished or terminated; (2) work on such job is permanently discontinued; or (3) the employee is displaced for any reason other than temporary shutdown of their job; such employee shall be entitled to step back to their last previous bid job, on the basis of their accumulated job classification seniority in such last previous bid job. (For example, John Doe is hired as a laborer and works at such job six months. He then secures job A by bid. After another six months, John secures job B by bid. Six months later he secures job C by bid and is on job C for a period of six months when he is laid off job C. John Doe would have the right to step back to job B with twelve months job classification seniority and if no work is available he would then step back to job A with

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eighteen months seniority and if no work is available John would then step back to his laborer job and then be subject to layoff on the basis of his plant-wide seniority).

(b) Any employee displaced from a bid job pursuant to this section shall have the right to step back to their last previous bid job on the same basis of job classification seniority. In the event that their last previous bid job is a job requirement Learner Periods, and the holder of that job is in the process of fulfilling the required Learner Periods; the employee may not displace the job-holder unless the employee has as much or more actual hours worked in said Learner Period job. The employee shall then step back to their next previous bid job.

(c) In the event the application of the above rules should result in the failure of a more senior employee to have work, such senior employee shall have the right to displace the most junior employee in plant-wide service provided the senior employee is qualified to perform the work.

(d) In the event an employee’s last regular bid job becomes operative the employee shall return to such job with full accumulated job classification seniority. Any other employee whose last previous bid job becomes vacant, because of another employee returning to their previous bid job, shall return to such vacancy. For any change that is known no later than the end of the day shift on Thursday

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of the prior week that would result in a vacancy for three (3) days or more in the following week, the Company will re-run the manpower schedule for the following week. If the Friday of the prior week is a holiday then it would be vacancies known by the end of the day shift on Wednesday and if both Thursday and Friday are holidays, it would then be vacancies known by the end of the day shift on Tuesday.

12.11 Distribution of Daily Overtime and Extra Weekly Work

(a) Daily Overtime: - In the event overtime is worked on a daily basis, such overtime shall be distributed to the employee holding the bin-in or permanently assigned jobs on which the overtime is to be worked up to and including eight (8) hours if such work is available.

(b) In the event several employees with the different seniority status hold jobs of the same classification, daily overtime shall be given to the employee in the Classification who has performed the same type of work during the day as the type of work which is to be performed at overtime rates.

(c) In the event the above rules are inapplicable, such overtime shall be assigned to the most senior employee in the classification available in the plant.

(d) Weekly Extra Work: - In the event work is to be performed on days in excess of the regularly scheduled

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work week, such work shall be designated as “Weekly Extra Work” and if such weekly extra work is performed on bid-in or regularly assigned jobs, the employees holding such bid-in or regularly assigned jobs shall receive the extra work in the event that employees holding such bid-in or regularly assigned jobs decline the extra work, employees who have signed a weekly sign-up sheet will be selected on the basis of seniority and qualification. The sign-up sheet will be posted Monday and taken down at 2:01 P.M. Thursday each week.

(e) In the event extra work as defined in sub-paragraph (d) above is of a type that is not performed by employees holding regular bid-in or permanently assigned jobs, the extra work will first be assigned to employees in point of seniority holding the job classification or classifications in the area where the extra work is to be performed and second to any employees in point of seniority qualified to perform the work who has signed the weekly sign-up sheet as referred to in 12.11 (d).

(f) The Company will continue to make a reasonable effort to assign weekly extra work on a voluntary basis. Employees who have been required to work overtime on two (2) consecutive weekends will not be required to work the third consecutive week unless there is an emergency.

(g) Daily and Weekly Overtime Treatment of Transferred Classified Employees. Classified employees

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who the Company has transferred to fill a scheduled absence shall: (1) retain their original classification seniority in regards to distribution of daily weekly overtime and (2) be considered as part of the classification they are filling but do not hold seniority over classified persons.

(h) Weekly overtime will be scheduled so that an equivalent to a minimum of four (4) hours pay at straight time will be paid.

12.12 Any employee who is drafted for military service in any branch of armed service of Canada shall have all of the seniority and re-employment rights given them under the laws of Canada and anyone not having any rights under the laws of Canada will not have any rights under this contract, except that returning veterans with service connected disabilities which prevent them from resuming their former jobs shall have their individual cases reviewed jointly by both the employer and the Union in an endeavor to provide them with suitable work if available.

12.13 An employee’s seniority standing will be lost whenever the employee’s continuous service record shall be broken for any of the following reasons:

(a) Failure to report for work within one (1) week after having been notified in writing by the Employer to report. Such notice shall be directed to the last address of the employee on the Employer’s records. Copy of notice to be

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furnished to the Union. It shall be the duty of all employees to notify the Employer in writing of any change of address.

(b) Absence exceeding to (2) years because of layoff or furlough, or because of disability incurred while off duty except, however, an employee may retain their seniority by notifying the Employer in writing within thirty (30) days after the two year period and once each six month period thereafter, of their intention to retain his seniority. Employer to acknowledge receipt of notice in writing to the Employee, with a copy to the Local Union.

(c) Discharge for just and proper cause.

12.14(a) Leaves of absence extending over a period of more than ten (10) calendar days must be given in writing, but may be extended on agreement between the Union and the Employer.(b) An employee who is unable to be actively employed because of illness or physical disability shall be considered on layoff status.

(c) In the event an employee is unable to perform their regular bid job due to illness or injury or other similar good cause, the Company may fill such vacancy for a temporary period not to exceed (30) calendar days. If at the expiration of such thirty (30) calendar days the regular job holder has not returned to work the job vacancy will be filled as follows:

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(1) By active employees in the Plant who had held the job on a permanent basis but are not on the job due to being bumped by a reduction of forces. (2) By active employees in the Plant who bid and held the temporary job on a permanent basis. Such employee will have the option of deciding to take the job again or remaining on the job he then holds. (3) In the event such bidder rejects the Job, employee shall give up all rights to the job and the job will be posted for bid as a permanent job. In the event the regular job holder returns, the employee holding the job as the result of 1, 2, or 3 above will return to their former job without loss of seniority.

12.15 In the event of a permanent plant closure, the Company agrees to provide severance payments to eligible employees, i.e. over one (1) year of service. The severance schedule will be negotiated at time of closure and become part of and subject to the execution of the closure agreement.

12.16 The Company will provide a maximum one year leave of absence which must be taken in blocks of no less than three months for employees who have been selected by the Union to work in an official Union capacity for the International Union. During the leave of absence the employee will not be provided any type of payor benefits, but will continue without loss of seniority for a period of one year, which can be renewed by approval of management on a yearly basis for a maximum of three consecutive years.

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12.17 Temporary Transfer

The Union agrees that, subject to seniority and ability, the Company shall at all times have the right of temporarily transfer employees. The transferred employee shall retain his regular rate of pay or the rate of pay of the job to which he/she is transferred, whichever is the higher.

In the case of temporary transfers, the transferred employeeshallbethejuniorqualifiedemployeeavailablefor the temporary transfer.

For the purposes of overtime, the transferred employee shall have overtime entitlement to his/her bid job.”

ARTICLE XIII- SAFETY AND HEALTH

13.1 For the general health and welfare of all employees, a Safety Committee composed of three members appointed by the Union and three members appointed by the Company, shall be established, however, the safety committee will be reduced to two (2) employees when sixty (60) employees or less are scheduled to work during the week of the committee meeting. The union shall advise the Company one (1) week in advance of the names of the committee members to be present.

Unless unusual circumstances prevail at least two of the

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three Union members will be from the following major departments of Production and Maintenance. The Safety Committee will meet at least once every three (3) months on Company time to discuss existing hazards and methods of reducing hazards and make recommendations for their elimination. When the Union members wish to meet ahead of the regular meeting a request should be made to the Plant Manager who will not unreasonably deny such a request. The Union and the Company agree to fully co-operate with the Safety Committee.

13.2 The Company will improve Safety Training on Plant jobs. The Union will support these endeavors. A review of suitable equipment and procedures to handle problems will be conducted by the Safety Committee.

13.3 The Safety Committee will review all accident reports at their regularly scheduled monthly meetings. All Lost Time Accidents and those requiring medical attention outside of the plant will be investigated within two (2) working days by a member of the Safety Committee from both the Union and Management.13.4 (a) The Employer shall continue to make reasonable provisions for the safety of its employees. Proper heating, ventilation, water and lavatory systems shall be provided and maintained where needed. Also, janitorial service will be provided a minimum of one (1) hour per day, Monday through Friday, for the Lavatory and Lunchroom facilities.

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13.5 Any employee who meets with an accident arising out of and in the course of their employment with the Employer and is unable to perform work for the balance of the day of the accident shall be paid at their rate of pay for the balance of the day of the injury only. Payment shall not be made for succeeding days if injury results in loss of time for more than the day of injury.

Treatment by first aid in the plant of any injury shall not be a reason or subject of a grievance as to whether the employee can or cannot return to work. Neither the Union nor the employee shall use the provision granted employee in an attempt to change established practice by the Employer in rendering first aid in case of minor injuries or of having a physician treat the injury. The opinion of the physician will be the guide as to whether the employee shall continue to work after treatment if treated by a physician.

13.6 The Company agrees to pay for one fitting per pair of new safety glasses purchased by the Company up to a maximum of $7.00. Receipt for fitting to be presented to plant office to qualify for payment.

(a) The Company will provide at time of hiring one (1) pair of non-prescription safety glasses from Canadian Safety Supply Co. Prescription safety glasses will be purchased by employees at Company’s cost maximum one (1) pair per calendar year. Additional prescription safety glass may be replaced at Management discretion. A few

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employees for a special reason are required to wear Uvex 2000 safety glasses. Uvex 2000 safety glasses required for reasons other than for normal wear will be purchased by these employees at Company’s cost.

(b) The Company will provide upon request one (1) pair of safety ear muffs. Any additional ear muffs required other than for reasons of normal wear will be purchased by the employee at Company’s cost.

13.7 The Company will make every effort to obtain safety shoes with Metatarsals at the lowest possible cost to the employees.

13.8 (a) The Company will pay up to a maximum of $135.00 per year per pair of Metatarsal shoes during the first year of the contract and $140.00 per year per pair of Metatarsal shoes during the second year of the contract and $145.00 per year per pair of Metatarsal shoes during the third year of the contract. The Company will no longer pay for the purchase of non-metatarsal safety shoes. The Company will pay up to a maximum of $155.00 during the first year of the contract and $160.00 during the second year of the contract and $165.00 during the third year of the contract per pair of insulated Metatarsal shoes for bid-in or permanently assigned Maintenance Repairman. If these employees choose to purchase regular metatarsal shoes instead, they will only receive the $135.00 during the first year of the contract, $140.00 during the second

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year of the contract and $145.00 during the third year of the contract credit.

Should an employee require boot replacement during a calendar year due to the nature of work performed, the Company at its discretion, will replace the boots through reimbursement or shoe mobile, up to the yearly reimbursement rate.

13.9 An employee requiring such medical examination and clinical tests as required by the provisions of the Occupational Health and Safety Act, 1980, or such periodic hearing tests as may be required, shall take such examinations, clinical tests and hearing tests by a doctor of his choice at no cost to the employee. The type of hearing test and time of periodic requests shall be determined by the Safety Committee.

13.10 When an injured worker is being considered for a rehabilitation or return to work program by the Workplace Safety and Insurance Board, the Local Union President or their designate will meet with the company representative, the Workplace Safety and Insurance Board representative, and the Employee, to consider the restrictions, hours of work, type of work, hours, shifts, limitations, overtime and any other related conditions that may be necessary for the injured worker to return to work. The Company shall reduce to writing any restrictions, hours of work, type of work, hours, shifts, limitations, overtime,

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any and all accommodations that may be necessary for the injured employee to return to work, and that document shall be immediately provided to both the Union and the injured worker.

13.11 The Company will abide by present legislation providing the employee the right to refuse an assignment, which he believes to be unsafe or unhealthy.

ARTICLE XIV - CO-OPERATIVE WAGE STUDY

14.1 The Co-operative Wage Study (C.W.S.) Manual and Wage Article for Job Description, Classification and Wage Administration is incorporated into this Agreement with a $.16 spread between job classes. Notwithstanding C.W.S. wage classification procedures, group leaders will be paid $1.00 per hour above the highest rate in their group.

14.2 In addition, the C.W.S. Committee will periodically monitor the average working conditions for application of Factor “K” which covers surroundings.

14.3 An employee on the learning periods will be advised at the end of each period their progression with respect to their successful completion of satisfactory work. In the event their work during the period ending is not satisfactory, the employee will be advised of their deficiencies and in the event such deficiencies are not satisfactorily corrected by the end of their next period of progression, the employee

58

will be removed from their job at that time.

ARTICLE XV - TRAINING AND EDUCATION

15.1 The Company agrees to reimburse tuition and books for the off hours education of its employees in an amount not to exceed $200.00 per calendar year, with a $500.00 life time maximum provided:

(a) Course is Plant oriented;

(b) The employee obtains approval prior to beginning course;

(c) Reimbursement will be made only after employee successfully completes course.

15.2 Maintenance Apprenticeship Program and Progression Schedule

Notwithstanding the layoff and recall provisions of Section 12.8, 12.9 and 12.10 of Article XII, the following terms and conditions shall apply to the Maintenance Program:

An employee to be eligible as a Maintenance Apprentice shall be regularly assigned to a Job Title in Job Class 17 or less and be a high school graduate or equivalent as documented by an accredited institution.

59

A Maintenance Apprentice shall have a trial period of not less than twenty (20) working days and not more than thirty (30) working days.

In the event of a reduction of employees in the Plant, the Maintenance Apprentice shall not be affected by such reduction. An Apprentice, however, shall not perform the work of any other job classification while employees with greater seniority than the Apprentice are on layoff.

A Maintenance Apprentice shall be ineligible to bid on any other job classification during the period of his apprenticeship except by mutual agreement between the Company and the Union. In the event the total number of employees in the Maintenance and Maintenance Apprentice classification is reduced, the Apprentice will be considered the junior employee regardless of job or plant seniority.

In the case of an indefinite layoff, any apprentice who has started on the job progression shall be given credit for those days which the plant has worked within the first thirty (30) calendar days following such layoff.

An employee shall be given credit for those days employee is off work which are paid holidays and paid vacation days.

An employee shall be given credit for a full work week of five (5) days in any work week in which employee

60

has started work but, through no fault of their own, is not given five (5) days of work.

An apprentice will be advised at the end of each period of their progression with respect to their successful completion of satisfactory work. In the event their work during the period ending is not satisfactory, the employee will be advised of their deficiencies and in the event such deficiencies are not satisfactorily corrected by the end of the next period of progression, the employee will be removed from their job at that time.

Upon completion of the schedule of Apprentice Program, employees will be considered as being in such job classifications as at the commencement of their apprentice program. Apprentices in the training schedule will not be considered for overtime distribution in the job classification, until all employees in job classification have been asked to work.

Classroom hours for courses successfully completed under the Government Apprentice Program will be credited the same as actual hours worked on the job.

Employees who successfully enter the Apprenticeship program will drop a maximum of two (2) job classes from the average job class held by such employee during the twelve (12) month period prior to entering this program. Such employee would remain at this

61

job class until the schedule of training periods mandate an increase.

Should the need arise, the Company Plant Manager and Union President will arrange to meet with an Apprentice Consultant from the Ontario Ministry of Skills and Development to explore the potential use of this agency for any future apprentices that the Company may elect to fill under its Maintenance Apprenticeship Program and Progression Schedule as set forth in the Labour Agreement under Article XV.

62

26

AR

TIC

LE X

V - T

RA

ININ

G A

ND

ED

UC

AT

ION

SC

HE

DU

LE

OF A

PPREN

TIC

ESHIP T

RA

ININ

G

1040 H

our Training Periods

520 Hour Training Periods

Trade Job

Job Class

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

JOB

CLA

SSES M

aintenance

6 7

8 9

10 11

12 14

16 18

Repairm

an 20

A

RT

ICLE

XV

- TR

AIN

ING

AN

D E

DU

CA

TIO

N

L

EA

RN

ER

PER

IOD

. C

LA

SSIFICA

TIO

N A

NA

LY

SIS

Job Requiring

N

o. of Hours and Job Class

Learner Rate

Learner for Learning Periods

Periods 520 Hrs 520 H

rs 520 Hrs

Plant C

ode Standard T

itle

Month

Factor

Job

Class

1st

Period

2nd

Period

3rd

Period 170

Maintenance R

epairman

49& over

20 3

14 16

18 202

Q.C

. Tech. Lab 19-24

12 2

8 10

-

Cast Shop O

perator 7-12

10 1

8 -

-

Labrynth Operator

13-18 14

2 10

12 -

Servicem

an 7-12

10 1

8 -

-

Schiesbersand Operator

13-18 14

2 10

12 -

63

26

AR

TIC

LE X

V - T

RA

ININ

G A

ND

ED

UC

AT

ION

SC

HE

DU

LE

OF A

PPREN

TIC

ESHIP T

RA

ININ

G

1040 H

our Training Periods

520 Hour Training Periods

Trade Job

Job Class

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

JOB

CLA

SSES M

aintenance

6 7

8 9

10 11

12 14

16 18

Repairm

an 20

A

RT

ICLE

XV

- TR

AIN

ING

AN

D E

DU

CA

TIO

N

L

EA

RN

ER

PER

IOD

. C

LA

SSIFICA

TIO

N A

NA

LY

SIS

Job Requiring

N

o. of Hours and Job Class

Learner Rate

Learner for Learning Periods

Periods 520 Hrs 520 H

rs 520 Hrs

Plant C

ode Standard T

itle

Month

Factor

Job

Class

1st

Period

2nd

Period

3rd

Period 170

Maintenance R

epairman

49& over

20 3

14 16

18 202

Q.C

. Tech. Lab 19-24

12 2

8 10

-

Cast Shop O

perator 7-12

10 1

8 -

-

Labrynth Operator

13-18 14

2 10

12 -

Servicem

an 7-12

10 1

8 -

-

Schiesbersand Operator

13-18 14

2 10

12 -

64

ARTICLE XVI - DURATION AND NEGOTIATIONS

16.1 (a) This Agreement between the Parties hereto shall become effective as of the date it is fully executed, unless otherwise provided herein, and shall be for the period of June 20, 2016, to June 19, 2019, from year to year thereafter unless changed pursuant to the provisions of sub-paragraph (b) below. This Agreement shall supersede all prior Agreements except that any agreement decided upon in local negotiations during the term of this Agreement shall be reduced to writing, signed by the Parties and made a part hereof.

(b) Either party may on or before April 20, 2019, or any April 20, thereafter, give sixty (60) days notice to the other party giving such notice to negotiate with respect to the terms and conditions of a new basic agreement. If such notice is given, the Parties shall arrange to meet promptly to discuss the terms of a new agreement.

16.2 Any notice required to be given by the employer to the Union shall be sent by mail addressed to United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, 1031 Barton Street East, Hamilton, Ontario Canada L8L 3E3, and any notice required to be sent by the Union to the employer shall be sent by mail to ANH Refractories Canada, Inc., P.O. Box 160, Smithville, On LOR2AO. Either party may, by like written notice, change the address to which mailed notice to it shall be given.

16.3 Regularly accredited local delegates attending

65

joint general negotiation sessions concerning this labour Agreement or its modification (as differentiated from local plant level negotiations) shall receive eight (8) hours credit toward weekly overtime for each day spent in such joint general negotiations.

16.4 The Company agrees to pay five (5) employees for actual days in negotiations of a new contract up to a maximum of five (5) days at their regular straight time rate of pay for eight (8) hours per day, however the negotiating committee will be reduced to three (3) employees when the average number of employees working in the plant for six (6) months prior to the contract expiry date is sixty (60) or less.

66

28

JOB

TIT

LE A

ND

JOB

CL

ASS

C

AST SH

OP O

PERA

TOR

10

SERV

ICEM

AN

10

SCHIEB

ERSA

ND

OPER

ATO

R

14 D

C W

AR

EHO

USE A

SSISTAN

T 10

LAB

YR

INTH

OPER

ATO

R

14 Q

.A. TEC

HN

ICIA

N

14 M

AIN

TENA

NC

E REPA

IRM

AN

20

SM

IITHV

ILLE

WA

GE

SCA

LE

Job Class

Effective

6-20-16 E

ffective 6-20-17

Effective

6-20-18 10

23.390 23.590

23.790 14

24.030 24.230

24.430 20

26.090 26.290

26.490 N

otwithstanding C

.W.S. w

age classification procedures, group leaders will be paid $1.00 per hour

above the highest rate in their group. TH

E AB

OV

E WA

GE SC

ALE IS EFFECTIV

E AS O

F JUN

E 20, 2016, JU

NE

20, 2017 AN

D

JUN

E 20, 2018, R

ESPECTIVELY

. N

ew H

ire Rate

Employees hired after 5-25-07 shall be started at $4.00 / hour less than the rate of the job for w

hich being hired and w

ill receive increases of $.34 cents / hour each 520 actual hours worked until the rate

of the job is reached. These employees w

ill also receive the rate increases specified in this agreement

on the dates so specified. An em

ployee will progress to the rate of the job after a m

aximum

of 6,240 actual hours w

orked. N

ew hires for skilled trades persons (repairm

en) are not included in this starting rate progression.

BA

GG

ING

MA

TER

IAL IN

CE

NT

IVE

E

ffective 1/16/92

< 100 lb Bags

1 Man

2 Men

0-5 Tons

0.665 0.4433

> 5-10 Tons

0.767 0.5113

> 10 Tons

0.917 0.6113

B

ulk Bags

1 Man

2 Men

0-5 Tons

0.499 0.333

> 15-30 Tons

0.575 0.383

> 30 Tons

0.688 0.459

67

Notwithstanding C.W.S. wage classification procedures, group leaders will be paid $1.00 per hourabove the highest rate in their group.

THE ABOVE WAGE SCALE IS EFFECTIVE AS OF JUNE 20, 2016, JUNE 20, 2017 AND JUNE 20, 2018, RESPECTIVELY.

New Hire RateEmployees hired after 5-25-07 shall be started at $4.00 / hour less than the rate of the job for which being hired and will receive increases of $.34 cents / hour each 520 actual hours worked until the rate of the job is reached. These employees will also receive the rate increases specified in this agreement on the dates so specified. An employee will progress to the rate of the job after a maxi-mum of 6,240 actual hours worked.

New hires for skilled trades persons (repairmen) are not included in this starting rate progression.

28

JOB TITLE AND JOB CLASS

CAST SHOP OPERATOR 10 SERVICEMAN 10 SCHIEBERSAND OPERATOR 14 DC WAREHOUSE ASSISTANT 10 LABYRINTH OPERATOR 14 Q.A. TECHNICIAN 14 MAINTENANCE REPAIRMAN 20

SMIITHVILLE WAGE SCALE

Job Class Effective 6-20-16

Effective 6-20-17

Effective 6-20-18

10 23.390 23.590 23.790 14 24.030 24.230 24.430 20 26.090 26.290 26.490

Notwithstanding C.W.S. wage classification procedures, group leaders will be paid $1.00 per hour above the highest rate in their group. THE ABOVE WAGE SCALE IS EFFECTIVE AS OF JUNE 20, 2016, JUNE 20, 2017 AND JUNE 20, 2018, RESPECTIVELY. New Hire Rate Employees hired after 5-25-07 shall be started at $4.00 / hour less than the rate of the job for which being hired and will receive increases of $.34 cents / hour each 520 actual hours worked until the rate of the job is reached. These employees will also receive the rate increases specified in this agreement on the dates so specified. An employee will progress to the rate of the job after a maximum of 6,240 actual hours worked. New hires for skilled trades persons (repairmen) are not included in this starting rate progression.

BAGGING MATERIAL INCENTIVE

Effective 1/16/92

< 100 lb Bags 1 Man 2 Men 0-5 Tons 0.665 0.4433 > 5-10 Tons 0.767 0.5113 > 10 Tons 0.917 0.6113

Bulk Bags 1 Man 2 Men 0-5 Tons 0.499 0.333 > 15-30 Tons 0.575 0.383 > 30 Tons 0.688 0.459

68

EXHIBIT “A”

POLICY FOR MANPOWER ALLOCATION FOR SCHEDULED ABSENCES

Scheduled absences are 1 week longer due to vacations, sickness, etc.

Labour pool employees are these who are not in any job which they have bid into, as well as a new employee who have not yet bid into or been assigned a job.

Employees hired as students, i.e. vacation replacements, may not be considered until after 18 weeks of continu-ous service.

The policy is based on the principle that the senior man is placed in the job with the highest job class.

To fill in for an employee who is on a scheduled absence the procedure will be:

NON LEARNER PERIOD JOBS

1. When employees have been laid off of their bid job, the last man laid off shall be the first man taken to fill in for scheduled absences.

69

2. If there are employees available in the labour pool, select the senior employee (plant wide seniority) or highest job class position. THEN:

3. Select the junior employee (job class seniority) from a bid in job that can be shutdown.

LEARNER PERIOD JOBS

1. When employees have been laid off of their last bid job, the last man laid off shall be the first man taken to fill in for scheduled absences.

2. Select the senior qualified employee (plant wide seniority) from the labour pool; THEN:

3. At the Company’s option train any employee from the labour pool or a junior signed in employee (job seniority) in a job that can be shutdown, THEN:

4. Select the junior employee (plant wide senior-ity) from a non-learner period job, who is qualified to perform the learner period job. THEN:

5. Select the junior employee (job class seniority) from a bid in job that can be shutdown, THEN:

6. Select the junior employee (plant wide seniority) who is qualified to perform the learner period job.

70

EXHIBIT “C”

Bid on Company Items for Sale

The Parties agree that all employees of the Plant, as well as any outside sources, will be afforded the opportunity to bid on any item which the Plant intends to sell and the item will be sold to the highest bidder. All bids will be submitted, sealed and reviewed by a joint Union / Management Committee.

EXHIBIT “D”

Other Work Practices

The parties agree to eliminate shipping practice of call out an incumbent if unloading five (5) lifts or more.

71

72

73

74

NOTES