UNIT 'B'

Mailroom

BETWEEN

The Owen Sound Sun Times, a division of Sun Media Corporation

and

CEP, Local591G

June 21, 2011 to June 20, 2014

This agreement entered into this 23'd day of July 2012

Bereavement Leave Bulletin Board Call-In Pay Chapel Chairperson Check-Off Duration of Agreement Grievance Procedure Hours of Work Job Posting Jury Duty Leave of Absence Management Functions Overtime Probationary Period Purpose of Agreement Reporting Pay Rights and Regulations Safety and Housekeeping Scope of Agreement Seniority Severance Pay Statutory Holidays Strikes and Lockouts Technological Change Union Membership Vacation With Pay Welfare (FlexMedia) Schedule "A"

INDEX TO AGREEMENT

Article Page

19 ........................ 10 14 ........................ 8 !! ........................ 8 18 ........................ 10 15 ........................ 9 27 ........................ 14 22 ........................ 11 16 ........................ 9 5 ......................... .4 20 ........................ 11 21 ........................ 11 9 .......................... 7 6 ......................... .4 10 ........................ 8 1 .......................... 3 4 .......................... 3 13 ........................ 8 24 ........................ 13 2 .......................... 3 23 ........................ 12 17 ........................ 10 8 .......................... 7 12 ........................ 8 26 ........................ 13 3 ......................... .3 7 .......................... 5 25 ........................ 13

15 Part Time and Student Mailroom Addendum 16

21 Letter I

2

ARTICLE 1 -GENERAL PURPOSE OF THIS AGREEMENT

The purpose of this agreement is to establish and maintain a satisfactory collective bargaining procedure between the Company and the Union representing the said employees.

ARTICLE 2 - SCOPE OF THE AGREEMENT

(a) This agreement applies to all employees of the respondent at its newspaper in Owen Sound in its mailroom save and except supervisor, persons above the rank of supervisor, and persons under contract with. the Adult Rehabilitation Centre.

(b) The terms and conditions for employees regularly employed for not more than twenty-eight (28) hours per week and students employed during the school vacation period shall be governed by the part time and student addendum which is attached to and forms part of this agreement.

ARTICLE 3 - UNION MEMBERSHIP

(a) The Employer recognizes the Union as the exclusive bargaining agent for all employees covered by this agreement.

(b) It is a condition of employment for any current employee covered by this collective agreement to become a member of the union, and to remain a member for the duration of this collective agreement. Each new employee who has completed their probationary period shall become a member of the Union. The Union agrees that it will retain in membership any employee subject to the constitution of CEP and the bylaws of the local, provided that the constitution and bylaws are not in conflict with the terms of this collective agreement.

(c) The Employer agrees that there shall be no interference with, discrimination against or discipline of any Union representative for carrying out Union business outside working hours.

(d) The Employer shall advise new employees that a collective agreement is in effect. A Union representative shall be allowed one-half (\6) hour during a new employee's first week of work to discuss the collective agreement and to sign the new employee into Union membership.

ARTICLE 4 -REPORTING PAY

.01 An employee injured while working on the job, and unable to complete his/her shift, shall be paid for the remainder of his/her shift.

3

. 02 An employee reporting for work on his/her regular shift, shall be given a full shift's pay at his/her regular basic rate for the shift for which he/she has reported, and will be expected to perform such other duties as are available in his/her department during the period for which he/she is paid. Should he/she be excused at his/her own request, he/she shall only be entitled to payment for the period of his/her presence at work.

.03

(a)

OR (b)

OR

The above section shall not apply when:

the employer has made every reasonable effort to notify the employee by telephone or written notification to his/her last known address that his/her regular work is not available;

the employee fails to receive notification because he/she was absent from his/her home, which does not include the normal regular time it talces to travel to work;

(c) the employee fails to receive notification due to circumstances beyond the Employer's control such as fire, flood, windstorm, or power failure.

ARTICLE 5 - JOB POSTING

When job vacancies occur, notice of such vacancies will be posted on the plant bulletin board(s) for five working days. During that period, employees may make applications for promotion to such jobs.

ARTICLE 6 - OVERTIME

Overtime is defined as hours worked in excess of the number of hours scheduled in a shift. The rate of time and one-half (1 Yz x) shall be paid for the first three hours of such overtime, and the rate of double time (2x) shall be paid for such overtime hours worked in excess of three hours. Overtime hours worked by an employee on his I her day off shall be paid at the rate of double (2x) time. Overtime hours worked in excess of a scheduled shift on a Sunday shall be paid at the rate of double (2x) time.

An employee may choose to talce time off in lieu of pay for overtime. This time shall be earned at the same rates as specified above and shall be talcen at a time that is mutually agreeable to the employee and the foreman. In a calendar year, an employee may take up to 12 working shifts off in lieu of overtime pay.

The Union agrees to supply the number of men required for overtime as determined by the foreman.

4

The Company will make every effort to provide notice twenty-four (24) hours prior to the overtime required, but it is clearly understood that circumstances at times make it impossible to give such notice.

All overtime shall be shared on as equal a basis as possible among all employees.

All overtime shall be called for in writing stating the number of people required and the number of hours, and shall be acknowledged in writing prior to the end of the shift in which it was distributed, stating names of people and confirmation of hours to be worked.

ARTICLE 7 - VACATION WITH PAY (Applies to employees on record at ratification date of this contract, August 7, 2012.)

For vacation purposes, a year of service begins on January I stand ends on December 31st.

Unused vacation cannot be carried over from one year to the next.

It is understood that if an employee leaves the Company for any reason and has not accrued all the vacation time they have taken, they will be required to pay back that amount and the Company will have the right to deduct from any final monies.

Consultation will occur with management each quarter on holiday scheduling.

Employees who have less than one year of service with the Company as of January 1st shall receive two weeks' vacation with pay in the amount of four (4) percent of their total earnings up to Dec. 31st.

Employees who have completed one year of service with the Company as of January I st shall receive two weeks' vacation with pay in the amount of four (4) percent of their total earnings up to Dec. 31st.

Employees who have completed three (3) years of service with the Company as of January 1st shall receive three weeks' vacation with pay in the an1ount of six (6) percent of their total earnings up to Dec. 31st.

Employees who have completed eight (8) years of service with the Company as of January I st shall receive four weeks' vacation with pay in the amount of eight (8) percent of their total earnings up to Dec. 31st.

Employees who have completed fourteen (14) years of service with the Company as of January 1st shall receive five weeks' vacation with pay in the amount often (10) percent of their total earnings up to Dec. 31st.

Employees who have completed twenty-six (26) years of service with the Company as of January I st shall receive six weeks' vacation with pay in the amount of twelve (12) percent of their total earnings up to Dec. 31st.

5

Employees who have completed twenty-five (25) years of service with the Company as of January I st shall receive an additional week of vacation with pay, once only, and during his/her twenty-sixth year of employment.

Employees who are terminated prior to receiving their vacation shall receive vacation pay in accordance with their entitlement under this Section.

Vacation pay adjustment will be calculated as of December 31st and percentage differences will be paid as soon as possible thereafter. It is clearly understood that this pay will only be the difference between the percentage for which an employee qualifies and his nonnal weeldy pay at time of vacation.

ARTICLE 7- VACATION WITH PAY: (Applies to employees hired after ratification date of this contract, August 7, 2012)

For vacation purposes, a year of service begins on January I" and ends on December 31".

Unused vacation cannot be carried over from one year to the next.

It is nnderstood that if an employee leaves the Company for any reason and has not accrued all the vacation time they have taken, they will be required to pay back that amount and the company will have the right to deduct from any final monies.

An eligible employee in his/her first year of employment shall accumulate .83 days of vacation for each complete month of service in that first year. These employees shall receive their normal daily wages for these vacation days.

An eligible employee who shall obtain his/her first anniversary during the year shall receive two (2) weeks vacation January I'' of that year with pay calculated at four (4) per cent of the previous 12 months wages.

An eligible employee who shall obtain his/her third anniversary during the year shall receive three(3) weeks vacation January !"of that year with pay calculated at six (6) per cent of the previous 12 month wages.

An eligible employee who shall obtain his/her eighth anniversary during the year shaH receive four (4) weeks vacation January I'' of that year with pay calculated at eight (8) per cent of the previous 12 months wages.

An eligible employee who shall obtain his/her sixteenth anniversary during the year shall receive five (5) weeks vacation January!" of that year with pay calculated at ten (10) per cent of the previous 12 months wages.

6

ARTICLE 8- STATUTORY HOLIDAYS

There shall be ten (I 0) statutory holidays as follows:

New Year's Day Civic Holiday Canada Day Thanksgiving Day Good Friday

Christmas Day Boxing Day Victoria Day Labour Day Family Day

Employees shall receive one day's pay in recognition of the holiday, provided when a holiday falls on an employee's day off or during his/her vacation he/she shall receive a mutually agreed day off with pay within forty-five (45) working days, either before or after the holiday date, exclusive of periods of absence.

Employees required to work on a statutory holiday shall be paid at a rate of two (2) times the employee's regular hourly rate for all work performed in addition to the day's pay. It is understood, however, that the premium payment for the holiday shall not apply to an employee who commences a night shift on the night of the holiday. Employees may choose to take time off in lieu of time worked on the statutory holiday. Such time will be administered with other banked overtime as per article 6.

Employees receiving Worker's Compensation payment for the holiday will be paid the difference between Worker's Compensation payment and a regular day's pay.

ARTICLE 9- RESERVATION OF COMPANY MANAGEMENT FUNCTIONS

The Union acknowledges that it is the exclusive function of the Company to:

(a) maintain order, discipline and efficiency to establish and enforce reasonable rules and regulations governing the conduct of its employees, which rules and regulations are primarily designed for the safety and welfare of its employees, the economy of operation, and the protection of life and property.

(b) hire, promote, demote, retire in accordance with the provisions of the Company's pension plan, transfer and suspend or discharge employees for just cause. Failure to discharge in any case of violation shall not be considered a waiver of the right to discharge;

(c) generally to manage the enterprise in which the Company is engaged, and to determine the methods and equipment to be used;

(d) the foreman/woman shall be the judge of a person's competency and his/her general fitness to work in the plant;

7

(e) the exercise of the foregoing rights shall not be llllfairly used to discriminate against any employee, and shall be exercised in a manner not inconsistent with the other provisions of this Agreement.

ARTICLE 10- PROBATIONARY PERIOD

New employees shall be considered probationary employees lllltil they have had forty -five ( 45) calendar days continuous service with the Company.

The Company may discharge or lay off a probationary employee for any reason provided that in doing so it does not discriminate on the basis of the employee's Union activities.

Probationary employees are entitled to all other rights and privileges accruing.

ARTICLE 11- CALL-IN PAY

An employee called back to work after having left the plant shall be guaranteed a minimum of two hours' pay at the premium rate.

ARTICLE 12 - STRIKES AND LOCK OUTS

The Union agrees that, during the lifetime of this agreement, there shall be no strike, slowdown or other collective action on the part of the employees which tend to interfere wifu publication or operation of the Company's business.

The Company agrees that, during the lifetime of this agreement, it will not lockout the employees.

ARTICLE 13 -RIGHTS AND REGULATIONS

The parties hereto agree that they have fully bargained with respect to wages, hours and other terms and conditions of employment and have settled the same for the term of this Agreement. The Company and the Union concede that the Union has the right to establish rules and regulations for the govermnent of its members but that such rules and regulations shall not affect the Company in the operations of the plant and shall not conflict with the terms of this contract which has priority.

ARTICLE 14- BULLETIN BOARD

The Employer shall provide a bulletin board in a mutually satisfactory place for official Union notices which will, in any event, not be contrary to good order and discipline.

8

ARTICLE 15 - CHECK -OFF

(a) The Employer shall supply the Union, within thirty (30) days of signing of this agreement, with a list containing the following inforn1ation for each member of the bargaining unit:

i) Name ii) Address iii) Date of Hiring iv) Classification and Rate of Pay v) Status (full-time or part-time)

(b) Changes to the above information as well as notification as to new hires, resignations, retirements, deaths, leaves of absence together with effective dates shall be provided to the Union not later than one (1) month after they occur.

(c) Union dues from all employees in the bargaining unit covered by this agreement shall be paid by automatic payroll deductions.

(d) The Employer shall deduct from the regular salary of the covered employees an amount equal to the regular Union dues in accordance with a rate schedule furnished by the Union. The dues schedule may be amended by the Union with one (1) month written notice and the Employer shall adjust payroll deductions accordingly on the pay day innnediately following the notice period.

(e) The Employer shall remit to the Union, not later than the 20th day of the following month, all regular Union dues collected during the preceding calendar month.

(f) The Employer shall provide the Union with a monthly statement of the amount of dues remitted to the Union for every employee in the bargaining unit.

(g) Employees will notifY the Employer promptly of any change in their home address and telephone number.

ARTICLE 16 - HOURS OF WORK

The regular work week may consist of thirty-seven and one-half (37.5) hours on days, thirty-five (35) hours on afternoons and nights. The day shift shall be divided into five (5) days of seven and one-half (7 .5) hours each. For afternoon and night shifts, no shift shall be less than four ( 4) hours or more than twelve (12) hours in length.

The Company will endeavour to maintain consistency in starting time for each employee. Any employee assigned a starting time other than his/her normal starting time for that week shall receive a premium pay of $2.00. It is clearly understood that this does not guarantee the same starting time for an employee. The company will give two (2) weeks notice of a shift change.

9

The normal starting time for the day shift shall be 6:30 a.m. The normal starting time for the afternoon shift shall be 3:00p.m. and the normal starting time for the night shift shall be 11:00 p.m. Hours worked shall be paid at the appropriate shift rate. Nothing in the foregoing shall restrict starting times. Employees assigned a start time between 4:00am m1d 6:00 run, Monday to Saturday inclusive, will receive a premium of$1.00 per hour for all hours worked on that shift in lieu of night rate referred to in Schedule A of the agreement.

No member of the Union shall be employed for less than a full shift except when suspended or discharged for cause, or excused at his/her own request. This clause is not intended to apply to any employee on layoff.

On the afternoon and night shifts, at least two of the days off per week shall be consecutive.

An unpaid one-hour lunch period shall be provided on the day shift (one-half hour for the afternoon and night shifts) except in an emergency situation where the meal period may be reduced to one-half hour.

ARTICLE 17- SEVERANCE PAY

In the event of a merger, consolidation or layoff due to staff reduction, all employees severed shall be entitled to severance pay at a rate of one week's pay for each six months of service to a maximum of forty-two ( 42) weeks' pay.

ARTICLE 18 - CHAPEL CHAIRMAN/WOMAN

The Company recognizes the right of the Union to elect or otherwise select a chapel chairperson to act as the representative of the Union for the purpose of this Agreement.

ARTICLE 19 - BEREAVEMENT LEAVE

All full time employees will be eligible for a three day paid leave in the event of the death of an immediate family member. A further two days can be taken without pay or with other arrangements which are made with the employee's supervisor.

Immediate family is defined as a spouse, a parent, a child, in-laws, foster parent, step­child, foster child, grandchild, brother, sister or grandparent.

In the event of the death of a non-immediate family member, employees will be able to attend the funeral.

10

ARTICLE 20 -JURY DUTY

The Company will pay an employee who is required for jury duty, or who is subpoenaed as a Crown witness, for each day of service on his/her regular working days, the difference between his/her regular straight time hourly rate for the number of hours he/she would otherwise work on such a day and the payment he/she receives for jury duty or Crown witness fees. The employee will present proof of jury or witness service and the amount of jury pay or witness fees. When an employee is excused from jury service for one-half (1/2) day or more, or when his/her Crown witness service is completed in one­half (1/2) day or less, he/she must return to work and complete his/her regular shift. Where an employee works on such a day, he/she shall be paid his/her regular hourly rate for hours worked, plus the payment he/she receives for jury or Crown witness service, but in no event less than his/her regular straight time hourly rate for the number of hours he/she would otherwise work on that day.

ARTICLE 21 -LEAVE OF ABSENCE

The Company and the Union shall discuss the granting of a personal leave of absence, without pay and without the loss of seniority, not to exceed a period of two (2) weeks for employees with one year and less than three (3) years of service with the Company, and for a period of up to three (3) months to employees with three (3) or more years of service with the Company.

ARTTCLR 22- GRIEVANCE PROCEDURE AND ARBITRATION

(a) It is agreed that the fruitless controversies must be avoided and that every effort be made to maintain harmonious relations. To accomplish this, both parties will in every instance give prompt attention to disputes and will in good faith endeavour to settle all differences in accordance with the procedure provided herein.

(b) A Joint Standing Committee shall be maintained to consist of two (2) non­bargaining unit employee representatives of the Company and two (2) employees appointed or elected by the Union, and in the case of a vacancy or prolonged absence, another shall immediately be appointed in his/her place. To the Committee shall be referred by either party all questions which may arise as to the construction to be placed upon any clause of the Agreement or alleged violations thereof, within five ( 5) working days following the occurrence of the circumstances giving rise to the question or alleged violation. Pending a decision by the Joint Standing Committee, the directions and orders of the Company shall be maintained, carried out and given full effect until such dispute has been finally disposed as provided expressly established by this Agreement.

Such Joint Standing Committee shall meet within five (5) working days after any question or difference shall have been referred to it, and shall render a decision within five (5) days after the first meeting and such decision shall be binding upon both parties.

II

(c) If the Joint Standing Committee cannot reach an agreement on the question or difference referred to them at the request of either party hereto within three (3) working days thereafter, a meeting shall be held within a further five (5) working days of the Joint Standing Committee at which meeting additional representatives of the Company and International Representatives of the Union may be present. Failing agreement, then within five (5) working days thereafter the members of the Committee shall refer the matter to a Board of Arbitration, the representatives of each party to this Agreement to select one (l) arbiter, and the two (2) to agree upon a third, who shall be a disinterested party and who will act as Chairperson of the Board.

The Board shall meet and render a decision within twenty (20) days of the naming of the third member. It shall require the affirmative vote of at least two (2) members of the Board to decide the issue, and the decision of the Board shall be final and binding on the parties hereto. The cost of the Chairperson shall be borne equally by the parties. Time limits mentioned may be extended by mutual agreement.

Except as provided in Section 10, any employee who has been discharged and believes the discharge unjustified, shall have the right to appeal to the Union. Upon demand, the Company shall give the employee a reason for discharge in writing, provided that should the matter subsequently be referred to arbitration, the Company shall not be confined to the reasons so given. Either the company or the Union may carry the appeal to the Joint Standing Committee.

ARTICLE 23 - SENIORITY

Bargaining unit seniority within a classification shall be based on length of continuous employment with the Company since last hired.

In the event of layoff, employees will be laid off in reverse order of bargaining unit seniority within the classification, provided the employees remaining are competent to perform the work available.

An employee who is transferred or promoted to a position not covered by this agreement will continue to accumulate bargaining tmit seniority for forty-five calendar days following his/her transfer or promotion after which bargaining unit seniority accumulation will be frozen. If that employee returns to the bargaining unit from the excluded position he/she will resume the accumulation of bargaining unit seniority from the previously frozen level.

An employee whose status is being changed by the Company from part-time to full-time will be credited with the equivalent of one-half year for each year of part-time service prior to entering the full-time bargaining nnit for the purpose of establishing full time seniority. The Company will prepare seniority lists mmnally.

12

ARTICLE 24- SAFETY AND HOUSEKEEPING

The union shall appoint an employee representative from the bargaining unit, to be a member of the Joint Health and Safety Committee. The Company will provide the required training to the bargaining unit representative.

The Company and the Union agree to cooperate in the maintenance of sanitary conditions in the mailroom, its washrooms and lunchroom. The Company will keep prominently posted arrangements in effect for prompt medical attention in emergencies during working hours.

The publisher agrees to use available manpower in a safe and practical manner.

Employees required by the Company to wear safety boots for use on the job shall be reimbursed to a maximum of $115 per annum effective upon ratification (and $120 effective June 21, 2010) upon presentation of receipted bills for each purchase. In the case of probationary employees, the first such payment will be made upon completion of the probationary period and subsequent payments may be made as of the anniversary of the employee's start date.

ARTICLE 25- WELFARE (Flex Media)

The new FlexMedia benefit plan for all full-time employees of Sun Media will be applicable to all full-time employees covered by this collective agreement and these employees will participate in such plan, effective thirty days following date of ratification of this agreement. The prior benefit program shall remain in place until FlexMedia is implemented. The terms and conditions of the new benefits plan, including coverage of benefits, shall be no less than those described and disclosed to the union during negotiations. The employee pool will be unionized employees within Central and Western Canada. This pool will exclude the unionized employees in Eastern Canada (Quebec). FlexMedia credits for these employees will be modified to provide for a 50/50 blended cost sharing approach for all premium increases or decreases. Though LTD is paid for entirely by the employee, increases in LTD will be included in the calculations of the blended approach. The Company will tal'e 50% of the premiun1 increase/decrease and will increase or decrease the credits based on the table for single, couple or family selections. It is understood that the Company reserves the right to request documentation that substantiates claims for casual illness or absenteeism, to its satisfaction.

ARTICLE 26 - TECHNOLOGICAL CHANGE

(a) The Company will attempt to provide the Union with two (2) month's notice of a Technological Change if that change will cause a staffing reduction or will significantly change an employee's work duties. At the request of either party, the Company and the Union shall meet during the notice period to discuss alternative arrangements.

13

(b) If an employee was actively employed immediately prior to the implementation of a Technological Change and that employee is permanently laid off as a direct result of the Technological Change, he/she shall be entitled to two (2) times the amount of severance pay provided for in Article 1 7 of this Agreement. This payment is in lieu of the Article 17 payment.

ARTICLE 27- DURATION OF AGREEMENT

The Agreement shall be in effect from June 21, 2011 to June 20,2014. Not more than ninety (90) days and not less than thirty (30) days' written notice of intention to terminate or amend shall be given either party, prior to the expiration date. During negotiations for renewal, the terms of this contract shall govern the parties.

Dated at Owen Sound this I .5 tJ- day of {lt'{!f~.,M: , 2012

FOR THE UN~

~1-P. A~ FOR THE COMPANY

14

SCHEDULE "A"

SCHEDULE OF HOURLY WAGE SCALES- MAILROOM

Mailer

0.0% June 21, 2011

$14.80

Distribution Centre Lead Hand $18.09

Hourly Shift Premiums

Afternoons $1.84 Nights $1.99

Person In Charge

1.0% June 21,2012

$14.95

$18.27

1.5% June 21, 2013

$15.17

$18.54

Any employee who is designated by the Company as person in charge, shall be paid a premium of $2.30 per hour for each hour during which he/she performs such function.

15

PART TIME AND STUDENT MAIL ROOM ADDENDUM

The provisions of this addendum as well as Articles 1, 2, 3, 5, 9, 12, 13, 14, 15, 18, 19, 20, 22, 26, and 27 of this agreement shall apply to employees regularly employed for not more than twenty-eight (28) hours per week and students employed during the school vacation period.

ARTICLE 4- REPORTING PAY

.0 I An employee injured while working on the job, and unable to complete his/her shift, shall be paid for the remainder of his/her shift .

. 02 An employee reporting for work on his/her regular shift, shall be paid for at least the number of scheduled hours unless the last sentence of this paragraph is applied, at his/her regular basic rate for the shift for which he/she has reported, and will be expected to perform such other duties as are available in her/her department during the period for which he/she is paid. Should he/she be excused at his/her own request, he/she shall only be entitled to payment for the period of his/her presence at work.

.03 The above section shall not apply when:

(a) the employer has made every reasonable effort to notify the employee by telephone or written notification to his/her last known address that his/her regular work is not available;

OR

(b) the employee fails to receive notification because he/she was absent from his/her home, which does not include the normal regular time it takes to travel to work;

OR

(c) the employee fails to receive notification due to circumstances beyond the Employer's control such as fire, flood, windstorm, or power failure.

ARTICLE 6- OVERTIME

(a) Hours worked beyond ten (10) on days, afternoons or nights, or on a day upon which an employee was not scheduled shall be paid at a rate of 1.5 times his/her regular hourly rate after the employee has worked twenty-eight (28) regular hours in that week.

(b) For Sunday, the rate shall be at double time.

(c) Notwithstanding the provision contained in a) above, an employee who is called in to work on a day upon which he/she was not scheduled due to machine breakdown, an unanticipated business peak, or the failure of other employees to attend work as

16

'·'

scheduled, will be paid at his/her regular straight time hourly rate up to ten (1 0) hours on days, afternoons or nights, but at overtime rates thereafter.

ARTICLE 7- VACATIONS (Applies to employees on record at ratification date of this contract, August 7, 2012)

Vacation pay at the rate of 4% of earnings in the preceding calendar year shall be paid not later than June 1 of each year.

Vacation pay at the rate of 6% of earnings in the preceding calendar year shall be paid to employees with five ( 5) years of continuous service with the Company as of December 31 of the year on which the vacation pay is calculated. Individual employees who are currently receiving vacation entitlement in excess of 6% shall continue to do so.

Vacation pay at the rate of 8% of earnings in the preceding calendar year shall be paid to the employees with ten (10) years of continuous service with the Company as of December 31 of the year on which the vacation pay is calculated.

Vacation pay at the rate of 1 0% of earnings in the preceding calendar year shall be paid to the employees with eighteen (18) years of continuous service with the Company as of December 31 of the year on which the vacation pay is calculated

Vacation pay at the rate of 12% of earnings in the preceding calendar year shall be paid to the employees with twenty-six (26) years of continuous service with the Company as of December 31 of the year on which the vacation pay is calculated.

ARTICLE 7- VACATIONS (Applies to employees hired after ratification date of this contract, August 7, 2012)

The Company's vacation year and vacation accrual period will be from January 1st to December 31'1•

An eligible employee in his/her first year of employment shall receive vacation pay in the amount of four (4) per cent of total earnings.

An eligible employee who shall obtain his/her first anniversary during the year shall receive vacation pay in the amount offour (4) per cent of total earnings.

An eligible employee who shall obtain his/her third anniversary during the year shall receive vacation pay from January 1st calculated at six ( 6) per cent of the previous 12 month wages.

An eligible employee who shall obtain his/her eighth anniversary during the year shall receive vacation pay at January I'' of that year with pay calculated at eight (8) per cent of the previous 12 months wages.

17

•'

An eligible employee who shall obtain his/her sixteenth anniversary during the year shall receive vacation pay at January 1st of that year with pay calculated at ten (10) per cent of the previous 12 months wages.

ARTICLE 8- STATUTORY HOLIDAYS

The following days shall be recognized as general holidays:

New Years Day Canada Day Thanksgiving Day Good Friday Civic Holiday

Christmas Day Boxing Day Victoria Day Labour Day Family Day

An employee working on these holidays shall be paid at the rate of two (2) times their regular hourly rate.

Employees covered by this addendum shall receive 4.0% added to their gross pay as payment for statutory holidays.

ARTICLE 10- PROBATIONARY PERIOD

New employees shall be considered probationary employees until they have had 360 hours worked with the Company, after which their continuous service shall date from the original date of hiring. The probationary period may be extended by mutual agreement by the Company and the Union. Such agreement will not be unreasonably withheld. The Company may discharge or lay off a probationary employee for any reason provided that in doing so it does not discriminate on the basis of the employee's Union activities. Probationary employees are entitled to all other rights and privileges accruing.

ARTICLE 16- HOURS OF WORK

Where possible, the hours of work schedule for part time employees shall be posted by noon Friday for the following week.

ARTICLE 17- SEVERANCE PAY

Part-time employees will be entitled to severance pay in accordance with the Employment Standards Act of Ontario.

ARTICLE 21 -LEAVE OF ABSENCE

The Company and the Union shall discuss granting of a personal leave of absence, without pay and without loss of seniority, not to exceed a period of three (3) weeks.

18

ARTICLE 23 -SENIORITY

It is agreed there shall be separate seniority for part time employees in the mailer and inserter classifications, based on length of continuous service. In the event of layoffs in any classification, employees will be laid off in the reverse order of seniority within the classification, provided the employees remaining are competent to perform the work available. The Company will prepare seniority lists armually.

Subject to operational requirements or circumstances beyond the control of the Company, bargaining unit seniority shall be the basis for scheduling shifts and call-ins (up to a maximum of 28 hours), and vacation selection.

ARTICLE 24- SAFETY AND HOUSEKEEPING

The Company and the Union agree to cooperate in the maintenance of sanitary conditions in the mailroom, its washrooms and lunchroom. The Company will keep prominently posted arrangements in effect for prompt medical attention in emergencies during working hours.

The Publisher agrees to use available staffing in a safe and practical marmer.

Employees required by the Company to wear safety boots for use on the job shall be reimbursed to a maximtun of$115 effective upon ratification (and $120 effective June 21, 2010) each two years upon presentation of receipted hills for each purchase. In the case of probationary employees, the first such payment will be made upon completion of the probationary period and subsequent payments may be made as of the anniversary of the employee's start date in alternate years.

ARTICLE 25- WELFARE

For regular part time employees who work twenty (20) or more hours per week, and have done so for a year, the Company will pay 50% of the monthly premium for the Company's supplementary medical plan and 60% of the Company's share of the premium of the dental plan extended to employees in the Unit "B" Agreement to which this addendum is attached. Qualifications are to be reviewed armually.

A regular part time employee who has a minimum of five (5) years continuous service, who works twenty (20) hours or more per week, and has done so for one year, who is sick on a day upon which he/she was scheduled to work shall be entitled to sick pay of up to a maximum of twenty-four (24) hours per calendar year.

If at any time during the life of this agreement, the Company decides to enroll eligible part time employees in FlexMedia, they shall so enroll.

19

SCHEDULE "A"

SCHEDULE OF HOURLY WAGE SCALES

o.oo;., l.O% 1.5% June 21, 2011 June 21,2012 June 21, 2013

Mailer $13.86 $14.00 $14.21 Adult Inserters Start rate $11.11 $11.22 $11.39 After I year rate $12.61 $12.74 $12.93

The classifications of Student Inserters and Inserter Helpers will be paid according to the Minimum Wage legislation of the province of Ontario.

HOURLY SHIFT PREMIUMS Afternoons $1.84 Nights $1.99

PERSON IN CHARGE Any employee who is designated by the Company as person in charge, shall be paid a premium of $2.30 per hour for each hour during which he/she performs such function.

20

July 23, 2012 Letter 1

Mr. John Lawrie Vice-President, CEP, Local591G

Dear Mr. Lawrie,

The Company agrees that bargaining unit work performed by Linda Tompkins will be limited to training, emergency situations and/or unforeseen circumstances beyond the control of the Company. It is understood that the Unio reserves the right to grieve should such time spent doing bargaining unit work beco e excessiVe.

21