ChicopeeManufacturingEmployees’Association

COLLECTIVEAGREEMENT

Effective: October 20, 2016

Magellan Aerospace, KitchenerA Division of Magellan Aerospace Limited

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Magellan Aerospace, KitchenerA Division of Magellan Aerospace Limited

ChicopeeManufacturingEmployees’Association

collectiveAgreement

effective: october 20, 2016

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INDEX

Article 01 Purpose and Relationship . . . . . . . . . . . . . .06Article 02 Association Security and Recognition . . . .07Article 03 Association Representation . . . . . . . . . . . .07Article 04 Bulletin Boards . . . . . . . . . . . . . . . . . . . . . .13Article 05 Rights of the Company-Management Functions . . . . . . . . . . . . . . . . . . . . . . . . . .14Article 06 Probationary Period . . . . . . . . . . . . . . . . . .15Article 07 Hours of Work & Overtime . . . . . . . . . . . .16Article 08 Pay Days and Methods of Payment . . . . . .21Article 09 Personal Records-Notification reporting and Disciplinary Notations . . . . . . . . . . . . .22Article 10 Statutory Holidays . . . . . . . . . . . . . . . . . . .25Article 11 Vacations . . . . . . . . . . . . . . . . . . . . . . . . . .28Article 12 Leaves of Absence, Bereavement leave, Court Attendance . . . . . . . . . . . . . . . . . . . .31Article 13 Retirement . . . . . . . . . . . . . . . . . . . . . . . . .33Article 14 Wages and Level Assignment . . . . . . . . . .33Article 15 Layoff and Recall . . . . . . . . . . . . . . . . . . . .45Article 16 Suspension or Discharge . . . . . . . . . . . . . .50Article 17 Seniority . . . . . . . . . . . . . . . . . . . . . . . . . . .53Article 18 Complaint Procedure and Employee Interviews . . . . . . . . . . . . . . . . . . . . . . . . . .56 Article 19 Grievance Procedure . . . . . . . . . . . . . . . . .57Article 20 Arbitration . . . . . . . . . . . . . . . . . . . . . . . . .61Article 21 Strikes and Lockouts . . . . . . . . . . . . . . . . .63Article 22 Employee Benefit Plan . . . . . . . . . . . . . . . .63Article 23 Health and Safety . . . . . . . . . . . . . . . . . . . .69Article 24 Duration of Contract . . . . . . . . . . . . . . . . . .72Schedule A Job Classification and Wage Schedule . . .74Schedule B Christmas Bonus . . . . . . . . . . . . . . . . . . . .76Letters Of Understanding . . . . . . . . . . . . . . . . . . . . . . .77

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COLLECTIVE AGREEMENTMADE THE

20th day of October, 2016

Between:

MAGELLAN AEROSPACE, KITCHENER A DIVISION OFMAGELLAN AEROSPACE LIMITED(hereinafter referred to as the “Company”)

OF THE FIRST PART:

and

CHICOPEE MANUFACTURINGEMPLOYEES’ ASSOCIATION,(hereinafter referred to as the“Association”)

OF THE SECOND PART .

In all cases throughout this Agreement where reference is made to “General Manager”, the term “General Manager” shall mean the most senior Company Official at the location.

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Article 01 Purpose and Relationship

01 .01 The purpose of this Agreement is to aid in maintaining a harmonious relationship between the Company and its Employees . The Company and the Association agree that there will be no intimidation, discrimination, interference, restraint or coercion exercised or practiced by either of them or their representatives or members because of an Employee’s membership or non-membership in the Association .

01 .02 The Company and Association agree to observe the provisions of the Ontario Human Rights Code (the “Code”) and are committed to providing a workplace free of discrimination and harassment . All employees must not engage in discrimination or harassment based on prohibited grounds contrary to the Code . Prohibited grounds are race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, record of offenses, marital status, family status or handicap, as defined in the Code.

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Article 02 Association Security and Recognition

02 .01 The Company recognizes the Association as the exclusive bargaining agent of all Employees of the Company in the City of

Kitchener in the Regional Municipality of Waterloo below the rank of supervisor excluding office staff, dispatchers, students employed during the vacation period and persons regularly employed for not more than twenty-four (24) hours per week . It is understood that the work practices of those not covered by this Agreement shall continue unless restricted or modified expressly by this Agreement .

Article 03 Association Representation

03 .01 (a) The Company acknowledges the right of the Association to appoint or otherwise select an Association Committee composed of not more than five (5) members and the Company will recognize the said Committee or any sub-Committee composed of members of such Committee for the purpose of handling any grievance or bargaining on any matter properly arising from time to time during the continuance of the Agreement, including the negotiations for or renewal of any Agreement . Each member of the Association Committee

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shall be an Employee who has been employed by the Company for at least two (2) years since his/her date of last hire .

(b) Members of the Association Committee shall during their term of office have top seniority on layoffs and recalls, provided that once a layoff or recall has been instituted no change shall take place because an Employee either leaves or joins the Association Committee . As between them seniority of members of the Association Committee shall be determined as otherwise provided by the Agreement .

“Top seniority” on layoff or recall means that the Association Committee Member’s seniority within his/her own classification will be one day more than the most senior Employee in that classification, provided the remaining Employees have the qualifications to perform the available work .

In the event that the classification of the Association Committee Member is being eliminated or if the modification of the requirements of that classification would be so significantly varied that the incumbent Association Committee Member or Members can no longer carry out the work in that classification the

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Association Committee Members shall have “top seniority” in filling available positions of relocation or retraining as provided in Article 14 .02 (b) .

(c) The Company recognizes the right of the Association to appoint or otherwise select Stewards for the purpose of representing members under the Complaint Procedure in Article 18 . The number of such Stewards shall be limited to a maximum of one (1) Steward for every twenty-five (25) Employees in excess of one hundred (100) Employees in the bargaining unit .

03 .02 It is understood that the Association Committee Members have their regular work to perform and that if it is necessary to service a grievance during working hours, an Association Committee Member will not leave his/her work without first obtaining the permission of the Committee Member’s immediate supervisor, which permission shall not be unreasonably withheld, and the Committee Member shall report again to the immediate supervisor at the time of his/her return to work . If an Association Committee Member is the only Association Committee Member available to attend a grievance hearing the permission of the Committee Member’s immediate supervisor shall not be withheld .

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03 .03 The Association shall keep the Company notified in writing of the names of the Association Committee Members and of the effective date of the appointment of such persons .

03 .04 The Association further agrees that there will be no solicitation for membership, collection of dues, or other Association activities on the premises of the Company, except as specifically permitted by this Agreement or in writing by the Company .

03 .05 (a) The Company shall deduct an amount equivalent to the weekly Association dues of the Association from the wages of all Employees who have completed their probationary period and who have worked during such week or who are entitled to payment for such week .

(b) On or before the 10th day of every month the Company shall remit by cheque to the Association the sum total of the deductions during the previous month together with a list stating the names of all Employees from whose pay the deductions were made as well as the amount deducted from each Employee .

03 .06 A monthly meeting between the Association Committee and representatives of the Company shall

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be held if either the Association or the Company so desires . A request for a meeting shall be in writing and shall indicate the subjects that the party wishing the meeting desires to discuss . The meeting shall be held at a time mutually agreeable .

03 .07 It is agreed that there will be no deduction from the pay of Association Committee Members for time spent while meeting with representatives of the Company during such Association Committee Members’ regularly scheduled working hours and that Association Committee Members will be paid 50% of wages for the time spent in face to face negotiations of collective agreements with the Company prior to the Contract deadline but not with respect to handling grievances beyond the third stage or with respect to arbitrations .

03 .08 It shall be recognized by the Company that each Employee upon the completion of his/her probationary period shall automatically become a member of the Association; provided that it is understood that membership in the Association is not a condition of employment .

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03.09 Conflict of Interest Except with written permission of the

General Manager an Employee shall not be involved as an employee or owner in any business that provides a service or product that in any way competes with a service or product produced by the Company . Also, no Employee shall engage in remunerative work that conflicts with the Employee’s availability or general efficiency in the performance of such Employee’s work .

03 .10 Tool Boxes The Company requires that all machinists

and trainees provide their own basic tool kit . The Company reserves the right to inspect tool boxes at any time (provided the owner or in his/her absence an Association Committee Member is present) during employment or on termination of employment . Any such inspections will not be considered an accusation .

The Company will repair, or if damaged

beyond economical repair, will replace at the Company’s expense any tool box and any tools (but not other contents) which are damaged by the Company during such an inspection . The Company will

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repair, or if damaged beyond economical repair, will replace at the Company’s expense, any tool box and any precision measuring instruments (but not other contents) which are accidentally damaged by the Company in the course of its ordinary operations .

Article 04 Bulletin Boards

04 .01 A bulletin board will be made available to the Association in a location as agreed by both parties for the purpose of posting Association notices relating to meetings and general Association activities . A copy of each notice shall be submitted to the Company for approval before such notice is posted . Approval of such notice may not be refused if the notice simply advises of the time and place of an event together with a brief description of the event .

04 .02 This bulletin board may be used for notices by management as well as the Association .

04 .03 In addition to the bulletin board referred to in Article 4 .01 and 4 .02, the Company will provide one bulletin board in each of the employee lunchrooms for the use of Employees . The Company reserves the right to remove any notices not in good

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taste . These boards may also be used for notices by the Association and the Company .

Article 05 Rights of the Company-- Management Functions

05 .01 The Association acknowledges that it is exclusively the function of the Company to:

(a) maintain order, discipline and efficiency; (b) hire, retire, discharge, direct, classify,

transfer, promote, demote, layoff and suspend or otherwise discipline Employees subject to the provisions of this Agreement provided that a claim that an Employee has been improperly suspended, demoted, laid off or discharged may be treated as a grievance as provided under the Grievance Procedure;

(c) enforce, and maintain rules and regulations not inconsistent with the provisions of this Agreement, governing the conduct of the Employees; and

(d) determine the nature and kind of business to be conducted by the Company, the kinds and locations of equipment and materials to be used, the control of work, the schedules of work, requirements of a job, production standards, qualifications, efficiency, number of personnel to be employed, the extension, limitation,

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curtailment or cessation of operations, and to determine all other functions and prerogatives heretofore vested in and exercised by the Company which shall remain solely with the Company except as specifically limited by the express provisions of this Agreement .

Article 06 Probationary Period

06.01 An Employee in all classifications with the exception of Trainee shall be on probation until he/she has completed ninety (90) days of work from the date of last hire . An Employee hired in the classification “Trainee” shall be on probation for a period of two hundred and forty (240) days of work from the date of last hire . (A day of work is defined as the number of normal hours an Employee regularly works exclusive of overtime hours .) If the Company finds such Employee’s performance to be unsatisfactory during this period for any reason, the Company may in its absolute discretion terminate such Employee’s employment .

06 .02 Probation -- Change of Jobs A trial period of thirty (30) working days

or such longer period as the Employee and the Company may agree will apply to all transfers under 14 .03 (a) except to the

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Classification “Trainee”. A trial period of two hundred and forty (240) days of work shall apply to transfers into the Classification “Trainee”. At the request of the Employee or the Company during such trial period, the Employee shall return to his/her previous classification, level and rate without loss of seniority .

Article 07 Hours of Work and Overtime

07 .01 (a) The normal work week shall consist of forty (40) hours and the normal work day shall consist of eight (8) hours .

(b) The normal hours of work are defined as follows:

Day Shift - 7:00 a .m . to 3:00 p .m . Afternoon Shift - 3:00 p .m . to 11:00 p .m . Night Shift - 11:00 p .m . to 7:00 a .m . (night shift starts Sunday at 11:00 p .m .

Last shift ends Friday 7:00 a .m .) (c) In the event it becomes necessary for

the Company to change the starting or stopping times of the normal shifts, or establish new shifts, the Company will consult and notify the Association Committee Members before such changes are effected. No such change shall be instituted without two (2) weeks notice to the Employees affected.

(d) Any employee clocking in after the start of his/her shift shall have five (5) minutes

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deducted from his/her clocked time for that shift . Any employee lined up at the punch clock prior to the end of his/her shift shall have five (5) minutes deducted from his/her clocked time for that shift .

07 .02 It is understood that the provisions of this Article are intended only to provide a basis for calculating time worked and shall not constitute a guarantee as to the hours of work per day nor as to the hours of work per week nor as to working schedules or starting and stopping times .

07.03 One relief period of twenty-five (25) minutes duration and one relief period of twenty (20) minutes duration will be taken in the first and second half of the working day, respectively, without loss of pay, provided that the relief period in the first half of the working day shall be considered as the one half hour unpaid eating period provided for under the Employment Standards Act . In the event that it is anticipated that an Employee will be working overtime immediately following the end of a regularly scheduled shift for a period of at least two (2) hours the Employee shall be allowed a ten (10) minute paid relief period immediately prior to commencing such overtime assignment . CNC and CMM

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machines will normally run unattended through breaks .

07 .04 Time and one-half shall be paid for all work performed in excess of eight (8) hours in any one (1) day .

07 .05 (a) Time and one-half shall be paid for all work performed on Saturday with the exception of any hours worked as a portion of a regularly scheduled shift .

(b) Double time shall be paid for all work performed on Sundays or Statutory Holidays as granted pursuant to Article 10 with the exception of any hours worked as a portion of a regularly scheduled shift .

07 .06 For the purpose of calculating overtime hours any Employee who was engaged as a member of the Association Committee as established by Article 3 .01 will be given credit for the number of regular hours the Employee would have worked and was not paid for had the Employee not been on such Association business and overtime will be paid for all hours so calculated exceeding eight (8) hours in any one day .

07 .07 Nothing in this Agreement shall be construed as entitling Employees to pay

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at the rate of time and one-half and/or double time twice in respect of the same work . (No pyramiding shall take place .)

07 .08 (a) Overtime following on from a regular shift will normally be performed by the Employee performing the work during the regular shift .

(b) Scheduled overtime on a separate shift will normally be performed by those Employees normally performing the work during regular shifts .

(c) If an employee fails to report for scheduled overtime the Company may fill that position temporarily with any available employee who is capable of performing the job, provided every attempt has been made to contact employees from that classification.

07 .09 After four (4) hours of an overtime period an Employee is entitled to a twenty (20) minute break with pay .

07 .10 The Company and the Association agree not to request that the permit issued under the Employment Standards Act permitting the substitution of a twenty minute paid break for the one half hour eating period be revoked . But if such permit is revoked Articles 7 .01 through 7 .09 shall be replaced from the time of such revocation by Articles 7 .01-7 .09 of the Collective

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Agreement dated September 8, 1987 and by note 3 (b) in the same said agreement .

07 .11 Reporting & Call In Pay (a) An Employee who reports for work at the

start of his/her regular daily shift without having been told in advance not to report, will be given work or pay at his/her regular rate for a period of four (4) hours .

(b) If an Employee is called in for overtime he/she will receive a minimum three (3) hours’ work or pay at one and one-half (1 .5) times his/her regular rate for a period of three (3) hours or at double his/her regular rate for a period of three (3) hours if called in on Sunday . Employees will be paid shift premium on call-in .

(c) It is agreed that the present practices of the Company with respect to the calculation of hours of work and rates of pay shall continue unless specifically modified by this Agreement.

07 .12 Shift Rotation (a) In order to provide for the efficient

operation of the Company, employees may be required and, if requested, shall rotate their shifts .

(b) In the event that two (2) or more Employees who work on a particular machine and/or perform a particular task on different shifts and/or perform similar

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work on different shifts and the Company agree as to the shifts such Employees shall work, the Employees shall work such shifts so long as this does not, in the opinion of the Company, interfere with the efficient operation of the Company. Notwithstanding the foregoing, any arrangement agreed to by the Company shall continue only so long as there is, in the absolute opinion of the Company, work available to accommodate the arrangement .

(c) Except in the case of an emergency or with the agreement of the Employee, the Employee’s shift rotation shall not be changed without two (2) weeks prior notice .

(d) The President of the Association shall work day shift and one (1) other Committee member will be scheduled to work day shift .

(e) During negotiations for the renewal or amendment of the Collective Agreement, members of the negotiating committee shall not be assigned to work on the Night Shift .

Article 08 Pay Days and Methods of Payment

08 .01 All Employees will be paid weekly by direct deposit into a bank account as designated by the Employee to the Company . Unless an employee elects to

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receive their pay advice slip by electronic means through an employee self-service terminal or personal computer, pay advice slips will be distributed on the second last shift before the end of the work week indicating time worked during the previous pay period up to and including Saturday, and totals for the year to date . In normal circumstances it is expected that such monies will be available in major financial banking institutions by end of day Friday, however, there is no guarantee by the Company or the Company’s payroll service provider that this shall in fact occur . As the Company has no control of the events once the data has been transferred to the Company’s payroll service provider, any such failure or loss suffered by the Employee or his/her dependents due to such failure shall not result in any liability upon the Company . The payroll service provider will normally pay on Thursday (when Monday is a statutory holiday, pay day will be the following Friday) .

Article 09 Personal Records-Notification Reporting and Disciplinary Notations

09.01 Notification of Status Change Employees shall promptly notify the

Human Resources Department in writing in the event of any of the following

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changes: (1) marital status (including designation of

spouse for Insurance and/or Bereavement Leave purposes if spouse for such purpose is other than the person to whom the employee is legally married) .

(2) name change; (3) address change; (4) telephone number change; (5) change in number of dependents; (6) change of name and telephone of person

you wish notified in case of emergency; (7) change in an insurance or pension plan

beneficiary; (8) change in bank and/or bank account

number; (9) insurable status for positive enrolment

of dependents, including names and ages of spouse and each dependent child, spouse’s group health insurance carrier and group health policy number .

09 .02 If the Company does not take some action or is unable to take some action by reason of the Employee’s failure to comply with article 9.01 any loss suffered by the Employee or his/her dependents or any failure to notify the Employee shall not result in any liability upon the Company .

09 .03 Employees shall promptly notify the Company of any expected or unexpected absence .

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09 .04 An Employee shall upon written request made at a reasonable time before the time of viewing, have an opportunity to view his/her personnel file in the presence of a Company representative . The Employee may request that an Association Committee Member be present .

The information the Employee may view will be:

(1) Application form (2) Written evaluation (3) Formal disciplinary notations (4) Copies of any written warning or written

reprimands (5) Attendance record (6) Medical records (7) Controlled Goods records

09 .05 Disciplinary Notation Company warning for policy or rule/

regulation violation shall be reduced to writing and distributed, one copy to the Employee, one copy to the Association, one copy to the General Manager, and one in the personnel file.

A copy of such notation shall be presented to the Employee within five (5) working days of the offence or knowledge of the offence except if the Employee is absent due to injury, illness, vacation

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leave or other approved leave of absence . In such case a copy of such notation shall be presented to the Employee within five (5) working days of the Employee’s return to active employment .

Progressive disciplinary action for the same or related offence must be taken within twelve (12) months of the most recent violation or the counting of such warning as cause for progressive discipline is lost .

Article 10 Statutory Holidays

10 .01 The following holidays are recognized as time off with pay for all Employees who have worked the full scheduled regular day of work preceding and following this holiday . After consulting with the Association Committee, the Company will select the day that a statutory holiday will be celebrated .

New Years’ Day Labour Day Family Day Thanksgiving Day Good Friday Christmas Day Victoria Day Boxing Day Canada Day Two (2) Floating in Civic Holiday each Calendar year

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10.02 If one of the above specified holidays so observed falls during an Employee’s annual vacation, an extra day of vacation will be granted in lieu thereof .

10 .03 (a) Subject to the provisions of Article 10 .03 (b), an Employee has no entitlement to Statutory Holiday Pay if he/she fails, without reasonable cause, to work all of his/her last regularly scheduled shift of work before the holiday, or all of his/her first regularly scheduled shift of work after the holiday . Each employee will be allowed three (3) incidents per year of arriving late on the qualifying days, subject to the cause and length of time of lateness being reasonable, and reported to the supervisor upon arrival .

(b) An employee who is absent will for the purpose of paragraph 10 .01 be considered to have earned wages within the meaning of the Employment Standards Act on the days he/she was absent while:

(1) on vacation leave (2) bereavement leave as provided by

paragraph 12 .02 (3) court attendance as provided by

paragraph 12 .03 (4) a Statutory Holiday (5) a scheduled leave of absence of less than

six (6) working days (c) Notwithstanding the requirement to be

present on his/her scheduled regular

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days of work preceding and following a holiday an Employee shall lose pay for no more than one of such holidays for each of such qualifying days the Employee was absent by reason of sickness .

(d) If an employee misses a qualifying day for a statutory holiday due to illness of one (1) day only and has a doctor’s note then the employee will receive holiday pay calculated as regular wages plus vacation pay for one (1) day . If an employee misses the qualifying day(s) for a statutory holiday due to illness of longer than one (1) day and has a doctor’s note then the employee will receive holiday pay calculated as regular wages plus vacation pay which is payable in the four weeks ending just before the work week with the public holiday divided by 20 .

Example: an employee is sick for 4 days prior to the statutory holiday . The employee will receive holiday of equal to: (20 – 4)/20 times employee rate for an 8 hour day .

The holiday pay calculation is the same even if the employee misses both qualifying days due to illness .

Notwithstanding the foregoing the employee shall not be entitled to receive holiday pay for any day the Employee

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was receiving compensation from another source such as Weekly Indemnity, Workers’ Compensation, Bereavement Leave . If the Company requests a letter from a doctor verifying such sickness such shall be submitted to the Company .

Article 11 Vacations

11 .01 The chart following outlines the Employees’ vacation entitlement . The timing of all vacation leaves will be at the discretion of the management .

11 .02 The vacation year runs from January 1 to December 31 of each year . Annual vacation leave must be taken in the calendar year in which it was earned .

11 .03 Employees entitled to more than two weeks leave may take pay in lieu of leave, only with the special permission of the Company . It is understood that on termination of employment the Employee will be reimbursed for any unused part of vacation credits . Employees who leave the company and have been paid more vacation pay than they have accrued will pay the Company back the difference between what has been paid and what has been accrued . Notwithstanding the above, Employees entitled to greater

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than two (2) weeks’ vacation leave may accumulate up to two (2) weeks’ vacation leave not taken for a period of one (1) year, after which time the right to take the vacation leave is lost .

Vacation pay will be calculated on total wages for the year for which the vacation is given . Total Wages includes all money received by an employee from the employer but does not include:

(a) tips and gratuities; (b) any money paid to an employee solely

at the discretion of the employer and not based on any performance over which the employee has control;

(c) expenses and travel allowances; (d) money paid on behalf of employees to

benefit plans; but includes previously paid vacation pay .

(e) Employees may elect to be paid vacation pay as a lump sum paid after the vacation year ends or paid vacation pay in the pay period the vacation is taken on a pro-rated basis

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Length of Employment

Employed between and December 31st of previous year

More than 1 year and less than 5 years continuous service as of December 31st

More than 5 years and less than 10 years continuous service as of December 31st

More than 10 years and less than 16 years continuous service as of December 31st

More than 16 years continuous service as of December 31st

VacationAllowed

Two weeks

Two weeks

Three weeks

Four weeks

Five weeks

PayAllowed

4% of wages earned from current calendar year

4% of wages earned from current calendar year

6% of wages earned from current calendar year

8% of wages earned from current calendar year

10% of wages earned from current calendar year

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Article 12 Leaves of Absence, Bereavement Leave, Court Attendance

12 .01 Leaves of Absence The Company may in its discretion

grant leaves of absence without pay and with or without loss of seniority to an Employee for any reason . All requests for leaves of absence for a period longer than one (1) day must be approved by the General Manager or his/her delegate and are subject to the written terms and conditions agreed upon .

12 .02 Bereavement Leave After completion of the probationary

period in the event of death in the immediate family, an Employee upon notification to the Company will be granted bereavement leave for up to the number of working days set out in “Schedule 1” below, as time off with regular pay for scheduled hours lost within five (5) calendar days following the date of death for the purpose of arranging and/or attending the funeral or memorial service or observance of the death . Pay lost will be computed at the Employee’s regular wage rate for the number of normal hours the Employee would have worked exclusive of overtime hours .

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Schedule 1

5 days- spouse, child, parent 3 days- brother, sister, brother-in-law,

sister-in-law, parent-in-law, grandchild, grandparent

When requested by the Company, the Employee will furnish satisfactory proof of death of the member of the Employee’s immediate family .

“Spouse” means the person to whom a person is married or with whom the person is living in a conjugal relationship outside marriage . An employee may have only one spouse for the purposes of Bereavement Leave entitlement . The Company will consider the person to whom the Employee is legally married as the spouse unless otherwise notified.

12 .03 Court Attendance After completion of the probationary

period an Employee who is called for jury duty or is subpoenaed as a witness in any Court of Law in a proceeding other than in one in which he/she is a party will receive for each day of absence from work the difference between pay lost (computed at his/her regular wage rate for the number of normal hours of employment that otherwise would have

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been worked exclusive of overtime hours) and the amount of the jury fee or witness fee received, provided the Employee furnishes the Company with a certificate of service signed by the Clerk of the Court showing the particulars of the time served and the amount of the jury fee received or in the case of being a witness, proof of the service of the subpoena and of the particulars of the amount of witness fee received .

Article 13 Retirement

13 .01 There is no compulsory retirement age for employees . Employees who are members of the Group Pension Plan may retire on reaching age fifty-five (55).

Article 14 Wages and Level Assignment

14 .01 (a) All Employees covered by this Agreement shall, subject to the other provisions of this Agreement, be paid according to their level and wage rate schedule attached to this Agreement as Schedule “A” .

(b) Level Advancements/Performance Appraisal

Employees at level 2 or less will receive a level advancement every two (2) years using the last level change date as the

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starting date for the commencement of the first two year period. Promotions are to take effect on the Sunday following the two year period date of last level change using the following guidelines:

1) The employee has worked in the same classification and at the same level during the prior two (2) year period .

2) The employee has not been suspended in the twelve (12) months prior to the review date . If the employee has been suspended in the 12 months prior to the review date he/she will not be eligible for level advancement until the following year .

3) In addition to time-based promotion steps, promotion to level 1 requires:

i . Manufacturing – the employee has demonstrated proficiency at setups and operating CNC machines within the prior two-year period .

ii . Quality – the employee had demonstrated proficiency at setups and running the Coordinate Measurement Machines .

iii . Processing – the employee has Level 2 NDT “ticket” or completion of a certified painter program .

iv . Maintenance – the employee has Millwright or Electrical/Electronics “papers”

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4) Promotion to level 1+ after 20 years of service .

Notwithstanding the above the Company reserves the right to review employees performance on an ongoing basis and adjust their level if warranted .

The Level Advancement procedure is subject to Policy grievances only .

(c) The starting level to which Employees are assigned upon the successful completion of the probationary period will be the classification and level for which they were hired to fill unless the company and the Association agree to a different level.

(d) An Employee who enters the Classification Trainee as the result of a posting will remain a Trainee for two hundred and forty (240) working days unless at the request of the Employee or the Company the Employee returns to his/her previous classification as provided in Article 06 .02 . Such Employee shall commence his/her training at Trainee Level 2 and after successfully completing one hundred and twenty (120) days of training shall move to Trainee Level 1 . The Employee will be paid the greater of the rate for the Classification Trainee or the Employee’s rate of pay at the time of the transfer .

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(e) The Company may hire Employees as a Trainee and such Employees will remain as Trainees for a period of two hundred and forty (240) days of work . Trainees so hired shall not exceed 5% of the number of Employees in the bargaining unit . Upon successful completion of 60 days of training the Employee will move to Level 3, after successful completion of one hundred and twenty (120) days to Level 2, and after success completion of one hundred and eighty (180) days to Level 1 .

(f) Upon the successful completion of the Training Period all Trainees shall move to the lowest level of the Classification for which he/she was training .

14.02 Addition or Deletion of Classifications

(a) In the event that the Company should establish any new job classifications or should significantly vary the skills required for the performance of any existing job classifications, the Company and the Association shall agree on an appropriate rate for such new or varied classifications within and commensurate with the rate structure established by the Agreement . In the event of failure to agree on a rate the Company shall set a rate and the Employee assigned to such classification shall perform the work required at such rate and he/she may, or

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the Association may, require that the rate be finally determined by means of the Grievance procedure commencing at Step No . 3 .

(b) Technological Change In the event that the Company is

considering the introduction of new equipment or modification or phasing out of existing equipment or employees that may result in an existing classification being eliminated, or if the modification of the requirements of an existing classification would be so significantly varied that the incumbent or incumbents of the classification can no longer carry out the work in that classification, the Company agrees to so notify the Association at least 30 days before the introduction of such new equipment or modification of existing equipment or requirements, of its intention, and keep the Association informed of any changes or modification to the plan in a timely fashion.

In the event that such change takes place

the Company and the Association agree to consult and co-operate in the attempted relocation and/or retraining of such employees who are no longer required in the obsolete or modified classification. Such employees who are agreed to be candidates for relocation and/or retraining and who agree to the relocation and/or

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retraining shall receive a training period of up to sixty (60) working days, during which time they must demonstrate that they have the skill, efficiency and ability to perform the work in question .

In the event that the Company and the Association fail to agree that an Employee is a candidate for relocation and/or retraining, the Association or the Company may require that this issue be determined by means of the grievance procedure commencing at Step No . 3 .

If an Employee is not successful in achieving the standards required the Employee shall be placed on the layoff list and shall have no further right to a training period due to the fact that their former classification is obsolete or has been modified.

14.03 Posting and Vacancies

(a) In the event that the Company should establish a new job classification or has a requirement for an additional Employee within a job classification covered by this Agreement, the Company shall post up a notice to this effect for a period of five (5) working days. The notice will specify the nature of the job, the job classification and level, the shift or shifts

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that it will likely be worked, the job classification rate and a brief description of the qualifications required. If there are Employees on the layoff list notice shall be given to such Employees by registered mail to the last known address of the Employee or at such address as the Employee may in writing advise the Company . The Employee must respond to such notice within five (5) working days of mailing it or lose the right to be considered for such vacancy .

Notwithstanding the above, if an Employee is transferred to prevent layoff due to the elimination of the Employee’s existing classification or modification of the requirements of an existing classification so the Employee can no longer carry out the work in that classification under the terms of section 14 .02 (b) such vacancies shall not be required to be posted .

If such vacancy still exists sixty (60) working days after the date of the posting the job will be re-posted. In filling such job posting in a new job classification or within a job classification covered by this Agreement, current qualified Employees will be given priority over outside Applicants .

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If any Employee applies in writing within five (5) working days to be considered for such posted vacancy, the Company will give consideration to such application, provided such Employee has not received a transfer as a result of a posting for a minimum time of one year from the date of the posting resulting in the transfer to the date of the current posting . Any such Employee who is selected to fill such a vacancy shall be granted a training period of up to sixty (60) working days .

(b) Any job, which is vacant because of illness, accident, vacation, leave of absence, temporary transfer, temporary promotion and/or temporary vacancy, shall not be deemed to be vacant for the purpose of this Article 14 .03 . The Company may fill any vacancy temporarily during this period for up to a maximum of thirty (30) working days . The vacancy will be filled with a member of the Association as long as there is a qualified employee immediately available with no training requirement, and such employee will only be allowed to work overtime so long as all other employees within the classification who are working the shift have been asked to work overtime. Upon filling a vacancy by a temporary appointment the Company will so advise the Association within forty-

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eight hours of making the appointment . (c) In filling such a posted vacancy in the job

classification, first consideration will be given to applications from Employees on layoff. Such Employees who have the skill, efficiency and ability to perform the work in question at the time of the transfer shall fill such vacancy or vacancies in order of their seniority in preference to the remaining Employees .

After consideration is given to applications from such Employees on layoff and there remains a vacancy in the job classification, consideration shall be given to other applicants based upon the skill, efficiency and ability of the applicants and where these factors are relatively equal, the Employee with the greatest seniority shall fill such vacancy, provided such Employee has the qualifications to perform the work in question at the time of such transfer .

(d) In the event of the transfer of an Employee under the provisions of Article 14 .03 (a) proves unsatisfactory, the Employee shall return to the Employee’s previous classification, level and rate without loss of seniority as provided in Article 6 .02 or if the Employee was on layoff at the time of the transfer the Employee shall return to layoff status and the time so spent will count the same as

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if the Employee had been continuously on layoff, and the vacancy may be filled without further posting .

14.04 Transfers

If an Employee is transferred due to the elimination or the modification of the requirements of an existing classification so that the incumbent can no longer carry out the duties of same, the Employee shall immediately receive the greater of the rate the Employee was receiving immediately before the transfer at the Company’s request or the rate for the classification and level to which the Employee is transferred . Thereafter, if the rate for the classification and level to which the Employee is transferred is less than the rate the Employee was receiving immediately before the transfer, the Employee’s rate shall be reduced six (6) months from the date of the transfer by fifty (50) percent of the difference between the rate the Employee was receiving immediately before the transfer and the rate at the time of the transfer for the classification and level to which the Employee was transferred, and at the end of one (1) year from the date of the transfer to the rate of the classification and level to which the Employee was transferred .

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Notwithstanding the above, no Employee shall lose more than the difference between the rate for his/her classification and level prior to such transfer and the rate for one level lower in his/her classification prior to transfer except if he/she transfers to Support Services, in which case he/she shall lose no more than the difference between the rate for his/her classification and level prior to such transfer and three levels lower in his former classification and level.

14.05 Work Practices (a) All Employees may be required to

operate multiple machines and/or perform multiple tasks .

(b) Employees who bump into the Classification “Manufacturing” shall not be required to demonstrate the ability to operate more than one CNC machine or perform more than one task during the training period .

(c) Employees operating multiple machines or machine pallet cell equipment shall receive one-half (1/2) hour overlap premium provided the employee is clocked into the assigned work centre .

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14.06 Training

In order to enhance the versatility of all employees the company will make every effort to increase the amount of cross training of all employees as follows:

(a) Employees interested in cross training may submit the areas of their interest to the Human Resources Department and supply information as to any applicable training or courses they have had in those areas .

(b) Candidates for cross training must be willing to take such courses at Community Colleges, Universities or in house as the Company recommends on their own time and at their own expense and demonstrate that they have achieved the proficiency required by the company in the area in question . The Company will cooperate with the Employees in an attempt to arrange shift rotation to accommodate course schedules so long as it does not interfere with the efficient operation of the Company . The decision as to proficiency required shall be at the sole discretion of the company . (Note: The Company will reimburse employees for 100% of work related course fees after successful completion, provided prior approval of the course has been obtained from the General Manager .

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Employees who resign within one year from the date of completion of the course will reimburse the Company the monies so received .)

(c) The company shall in its sole discretion determine the employees to be cross trained and the area of training without regard for seniority . Employees receiving training during their regularly scheduled shift shall be paid at the rate for their current classification and level. Employees receiving training outside their regularly scheduled shift will not be paid and it is understood that there shall be no overtime pay for such training during the regular work week or on Saturday .

Article 15 Layoff and Recall

15 .01 The Company and the Association agree that in the event of a layoff, Employees shall be laid off in reverse order of their seniority by classification.

15.02 In the event of a layoff the following procedure will be followed:

(a) The Company agrees to give the

Employees notice of any scheduled layoff at least five (5) working days before the institution of such layoff. Notwithstanding the above, the Company

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may make non-scheduled layoffs without such notice but in such cases shall promptly notify the Association of its intentions and keep the Association advised. A non-scheduled layoff is a layoff caused by the failure to receive supplies, breakdown of equipment, fire, flood or other unanticipated event causing disruption of work .

(b) The Company will meet with a Committee of the Association Executive at least twenty-four hours prior to giving notice of any scheduled layoff to discuss the layoff.

(c) An Employee who changes classification in order to prevent layoff may not bump into a classification and level which carries a higher hourly rate than the Employee’s current classification and level except as provided in (g) and (h) .

(d) Upon receiving notice of the layoff the Employees with the greatest seniority will be given preference to bump . Upon the Employee making a selection the Employee shall be given up to a thirty (30) working days training period to demonstrate that the Employee has the qualifications to perform the work in question .

(e) The Employee who so bumps will receive the rate for the new classification and level during the training period and if the Employee is successful will continue to be

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paid at the rate for such classification and level except as provided in (g) and (h) .

(f) The employee must report to commence the training period on the day assigned or lose the right to bump and of seniority and recall . However, an employee who is prevented from reporting for the training period because of illness or other circumstances beyond the Employee’s control shall be bypassed for the bump position but will remain on the recall list for the balance of the Employee’s remaining recall period . Notwithstanding the foregoing, when an employee is on WSIB, the employee will automatically bump into the highest available position . The training period will start upon the employee’s return to work, subject to Articles 15 .04 and 16 .05 .

(g) An Employee may bump into any position previously held in the Company and will immediately receive the rate for the classification and level to which he has bumped .

(h) An Employee may bump into any position that in the opinion of the Company the Employee is qualified to fill due to outside education and training and cross training in the Company . The Employee will continue to receive his/her current rate for the thirty (30) working day training period and if successful will retain his/her current rate for an

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additional sixty (60) working days . At the end of the 60 working days the Employee will be assigned the rate for the level in the classification that in the opinion of the Company the Employee has qualified. Such Employees bumping into any one Classification will be limited to 20% of the current Employees in that Classification.

(i) Once an Employee has made a selection the Employee will be bound by the choice and shall not have the right to change the selection after commencing the training period or to make an additional bump or receive a further training period . If the Employee is not successful, no other Employee who has been laid off in the same layoff shall be able to make the same selection for bump and training .

(j) If the Employee is not successful the Employee will be returned to recall status and shall be eligible to be recalled to the classification and level that the Employee held on layoff in accordance with the Employee’s seniority if there is a requirement for an additional employee in such classification and level.

15 .03 An Employee who so bumps under

section 15 .02 or 14 .03 shall maintain the right to be recalled in the order of the Employee’s layoff seniority if there is a vacancy in the classification and level the

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Employee was classified at the time of the layoff at his/her previous level within twenty (20) months of the date of the layoff. If an employee refuses such recall the Employee may remain in the position to which the Employee had transferred while on layoff or as a result of a layoff. In doing so the Employee forfeits the right to be recalled at a later date to the classification and level the Employee was classified at the time of the layoff.

15 .04 Any non-probationary Employee who is laid off shall remain on recall status for a period of twenty (20) months, after which period such Employee’s right to recall under the provisions of this Agreement shall terminate .

15 .05 Notice of recall to an Employee who has been laid off shall be made by hand delivery, courier, or registered mail to the last known address of the Employee or at such address as the Employee may in writing advise the Company . The Employee must respond to such notice within five (5) working days of mailing or lose rights of seniority and recall unless the Employee is employed at the time of recall, then the term of five working days is extended to ten (10) working days . However, an Employee who is prevented from responding to a

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recall notice because of illness or other circumstance beyond the Employee’s control shall not lose such rights thereby, but such Employee may be bypassed for the position available . An Employee bypassed above will remain on the recall list for the balance of the Employee’s remaining recall period .

15 .06 In the event that an Employee working in a position to which he has bumped is requested by the Company to transfer temporarily to his last held position prior to layoff and bump, the Employee will be required to do so provided the following conditions are met .

(a) The Employee is transferred for a minimum of one shift .

(b) The Employee will receive the rate of pay for the position to which the Employee is transferred .

(c) The transfer has been agreed to by the Company, the Association and the Employee .

Article 16 Suspension or Discharge 16 .01 If an Employee who has completed the

probationary period is being suspended or discharged, an interview will be held with the Employee prior to the suspension or discharge being imposed provided such

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Employee makes him/herself available to attend an interview at the Company premises at a predetermined time within five working days of such a request. Such a request may be made in person or by registered mail to the Employee’s last address known to the Human Resources Department . If such an interview is held an Association Committee Member will be present at the interview . It is agreed that a preliminary inquiry or sending an Employee home pending further investigation and/or action will not be considered such an interview or such action . The reason for such suspension or discharge must be given to the Association and the Employee in writing within two (2) working days of such action . Notice of such reason to the Employee shall be deemed sufficient if delivered personally or by registered mail to the Employee’s last address known to the Human Resources Department of the Company . Such action is subject to the grievance procedure commencing at Step 3 provided such grievance is presented in writing to the Company within five (5) working days of the receipt of the written reason for the action taken . Such special grievance may be settled under the Grievance or Arbitration Procedure by:

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(a) confirming the Company’s action; (b) reinstating the Employee without loss of

seniority and with full compensation for time lost; or

(c) by any other arrangements which may be deemed just and equitable .

16 .02 It is hereby agreed that the Company has the right to discharge a non-probationary Employee for just cause and in such event the Employee is not entitled to any severance pay .

16 .03 It is hereby agreed that the Company has the right to discharge a probationary Employee for any reason in its absolute discretion it deems appropriate and in such event such Employee is not entitled to any severance pay .

16 .04 All probationary Employees may terminate or be terminated without notice .

16 .05 An Employee shall lose all seniority and shall be deemed to have terminated if the Employee is absent due to illness or accident for more than twenty-four (24) months .

16 .06 (a) All non-probationary Employees terminating their employment shall give

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one (1) week’s notice in writing . (b) All non-probationary Employees

terminated by the Company will receive one (1) week’s notice in writing if the period of employment is less than one (1) year, two (2) weeks notice in writing if the period of employment is one (1) year or more but less than three (3) years, three (3) weeks notice in writing if the period of employment is three (3) years or more but less than four (4) years, four (4) weeks notice in writing if the period of employment is four (4) years or more but less than five (5) years, five (5) weeks notice in writing if the period of employment is five (5) years or more and less than six (6) years, six (6) weeks notice in writing if the period of employment is six (6) years or more and less than seven (7) years, seven (7) weeks notice in writing if the period of employment is more than seven (7) and less than eight (8) years, and eight (8) weeks notice in writing if the period of employment is eight (8) years or more . An Employee may be paid wages at straight time in lieu of notice .

Article 17 Seniority

17 .01 Seniority shall mean length of continuous service with the Company from the date

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of last hire .

17 .02 Upon completion of the probationary period Employees shall be entitled to all rights and privileges of this Agreement and the Employee’s seniority shall be effective from the date of last hire.

17 .03 Subject to paragraph 17 .06, while an Employee is laid off and placed on the recall list, such Employee will retain and accumulate (subject to the limitation hereinafter stated) seniority during the period of the layoff. Such accumulations shall be for the lesser of twenty (20) months or his/her seniority prior to such layoff.

17 .04 Subject to paragraph 17 .06 an Employee on a leave of absence, subject to paragraph 12 .01, or sick leave will continue to accrue seniority .

17.05 Within fifteen (15) days of the 1st of January and the 1st of July in each year the Company shall post up and supply a seniority list to the Association . Within thirty (30) days of the date of its posting each Employee is responsible to ensure the information is correct . Any discrepancies should be reported to the Association in writing who in turn will notify the Company of the discrepancy and what they believe the correct date

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should be . If two or more Employees have the same last date of hire, they will be placed on the seniority list in alphabetical order .

17 .06 An Employee shall lose all seniority and shall be deemed to have quit if he/she:

(a) voluntarily leaves the employ of the Company;

(b) is discharged and is not reinstated through the grievance or arbitration procedure;

(c) is absent from work without permission for three (3) consecutive days unless it is established to the satisfaction of the Company that such absence was beyond the Employee’s control;

(d) fails to return to work upon termination of an authorized leave of absence or utilizes a leave of absence for purposes other than those for which the leave of absence may have been granted;

(e) fails to return to work within five (5) working days after being recalled from layoff by notice sent by registered mail, unless such period is extended for such reasons satisfactory to the Company; Note --if such Employee is employed at the time of recall, the term of five (5) working days above referred to shall be extended to ten (10) working days;

(f) has been laid off and has not returned to work pursuant to a recall within twenty

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(20) months of such layoff. 17 .07 Each Employee transferred out of

the bargaining unit and subsequently transferred back into the bargaining unit shall continue to pay Association dues and accumulate seniority the same as if he/she had not been transferred out of the bargaining unit for a period of three (3) months . Should such Employee not be transferred back into the bargaining unit within three (3) months all bargaining unit seniority shall be lost .

During such three (3) month period the Company shall have the right to transfer such Employee back into the bargaining unit without posting or loss of seniority .

Article 18 Complaint Procedure and Employee Interviews

18 .01 It is the mutual desire of the parties hereto that complaints of the Company or the Employees shall be adjusted as quickly as possible, it being understood that an Employee has no grievance until he/she has first given the immediate supervisor an opportunity of adjusting the complaint .

18 .02 If an Employee has a complaint, he/

she, who may request the assistance and attendance of an Association Committee

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Member, shall discuss it with the immediate supervisor within five (5) working days after the circumstances giving rise to the complaint have originated or occurred . Failing settlement, a grievance may be lodged by the Employee within five (5) working days following the reply of the immediate supervisor, which must come within five (5) working days following the complaint .

18 .03 If an Employee is being interviewed by the Company the Employee will upon the Employee’s request have the assistance and attendance of an Association Committee Member, provided an Association Committee Member is reasonably available .

Article 19 Grievance Procedure

19 .01 Subject to Article 18, should any misunderstanding or controversy arise between the Company and the Association as to the compliance of either party with any of its obligations hereunder or should there be any grievance involving the terms of this Agreement by an Employee or group of Employees or the Association or the Company, the same shall be handled in the following manner .

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19 .02 Step 1 Any grievance of an Employee shall

be presented by such Employee in writing (on a standard form provided by the Company and completed as indicated on the form) to the Employee’s immediate supervisor . The Employee will be accompanied by an Association Committee Member . Such grievance form shall be completed in triplicate and signed by the Employee . One of such forms shall be retained by the Employee, one by the Association and the other handed to the immediate supervisor . Such immediate supervisor shall discuss such grievance with the aggrieved Employee and a member of the Association Committee . The immediate supervisor shall give his/her written disposition within five (5) working days of the receipt of the written grievance .

19 .03 Step 2 If the answer of the immediate

supervisor does not settle the grievance, the grievance shall be presented to an appointed Director (or delegate) within five (5) working days of the immediate supervisor’s answer . The Director (or delegate) shall meet with Association Committee Members within five (5) working days after the receipt of

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such grievance to attempt to settle the grievance . The Director (or delegate) shall give his/her written disposition within five (5) working days of the date of such meeting . If the appointed Director is the same person as the Employee’s immediate supervisor, then Step 2 will be omitted and the grievance shall proceed directly from Step 1 to Step 3, but in all events a grievance involving a discharge of a non-probationary Employee shall commence at Step 3 .

19 .04 Step 3 If the grievance is not settled at the

preceding step, the Association Committee shall take the matter up with the General Manager (or delegate) within five (5) working days following receipt of the Step 2 reply . The General Manager (or delegate) shall meet with the Association Committee within five (5) working days after the receipt of such grievance to attempt to settle the grievance . The General Manager (or delegate) shall give his/her written disposition within five (5) working days of the date of such meeting .

19 .05 No grievance shall be considered which has not been carried through the steps of the grievance procedure within the various time limits unless the Company and the Association otherwise agree in writing .

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19 .06 A Saturday, a Sunday, a statutory holiday

within the meaning of this Agreement, or an aggrieved Employee’s or the aggrieved Employee’s Supervisor’s day off shall be excluded in computing the time limits within which a step is taken under the grievance procedure of this Agreement .

19 .07 Misunderstanding or controversy as referred to in Article 19 .01 arising between the Company and the Association which may be considered as policy matters shall be reduced to writing and commence at Step 3 of the grievance procedure .

19 .08 (a) In the event that the Company wishes to present a grievance, it shall be reduced to writing and presented to a member of the Association Committee and the Association Committee and representatives of management shall meet to discuss such grievances within ten (10) working days of its presentation .

(b) Failing resolution of any grievance within five (5) working days of such meeting, either party may refer the grievance to arbitration providing such reference is made within ten (10) days of the expiration of the last mentioned five (5) day period .

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19 .09 The Company or the Association may have such counsel or other assistants present as they may desire when grievances are taken up under Steps 2 and 3 and under clause .08 of this Article provided that no more than one of such counsel or assistants representing either the Company or the Association may be present at such meeting unless all parties agree to additional representation .

19.10 The times specified in Article 19 may at any time whether before or after the event be extended or abridged by mutual consent of the Company and the Association . Such consent shall be expressed in writing and shall specify the alteration agreed to . If the time limit stated in 19 .08 is exceeded and the extension not agreed to in writing, the grievance is considered abandoned .

Article 20 Arbitration

20 .01 When either party requests that any matter be submitted to arbitration as hereinbefore provided, it shall make such request in writing, addressed to the other party to this Agreement and to the Ministry Of Labour . An Arbitrator acceptable to both parties will be chosen by counsel for each party . If no agreement can be reached, the Ministry of

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Labour for the Province of Ontario shall have power to effect the appointment of an Arbitrator .

20 .02 No person may be appointed as an arbitrator who has been involved in an attempt to negotiate or settle the grievance .

20 .03 No matter may be submitted to arbitration which has not been properly carried through all requisite steps of the Grievance Procedure .

20 .04 The arbitration board shall not be authorized to make any decision inconsistent with the provisions of this Agreement, nor to alter, modify, add to or amend any part of this Agreement .

20 .05 The proceedings of the arbitration board will be expedited by the parties hereto and the decision of the majority, and where there is not majority the decision of the chairman will be final and binding upon the parties hereto and the Employee or Employees concerned .

20 .06 Each of the parties hereto will jointly bear the fees and expenses of the arbitrator .

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Article 21 Strikes and Lockouts

21 .01 In view of the orderly procedure for settling grievances and following the signing of this Agreement, the Company agrees that it will not cause or direct, during the term of this Agreement, any lockout of its Employees and the Association agrees that, during the term of this Agreement, there will be no strike or other collective action which will stop, curtail or interfere with work or the Company’s operations . Any Employees participating in any such strike or collective action will be subject to discipline, including discharge .

Article 22 Employee Benefit Plan

22 .01 The Company will continue to provide for the Employee’s participation in the following plans . Coverage for new Employees begins after sixty (60) days of work from date of last hire .

(a) Extended Health Care Plan Co-ordination of benefits applies to all

portions of the Extended Health Care coverage, which includes:

(1) Drug Plan: 100% coverage, on eligible drugs prescribed by a physician less coverage limits on Fertility Drugs .

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Consistent with Ontario pharmaceutical practice, mandatory generic substitution will occur at the pharmacy . If the employee would like to keep a name brand, the employee can pay the difference between the lowest cost generic alternative and the name brand unless there is a medical necessity for the brand name drug .

There will be a dispensing fee cap of $10 .00 per prescription covered by the benefits plan . Over this amount, the employee is responsible for all dispensing cost .

Health case management will be added by the service provider for situations where patient drug costs exceed the pooled maximum cost .

(2) Vision Care: To provide prescription eye-glasses or contact lenses based on reimbursement of up to $250 .00 per individual per 12 months .

(3) Other professional and medical services as outlined in the Master Contract, including private hospital room .

(b) Dental Co-ordination of benefits applies to all

Dental coverage, which includes: (1) Reimbursement of 100% for Routine

Care, including white fillings, both front and back, at current ODA fee guide except that oral exams, cleaning of teeth

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and bitewing x-rays are covered not more than once in a six month period .

(2) Bridges, plates, and crowns are reimbursed at 50% . Reimbursement for items (1) and (2) will have a combined maximum of one thousand seven hundred and twenty-five dollars ($1,725.00) per family member in a benefit policy year (January 1 through December 31 .)

(3) Orthodontics to be reimbursed at 50% to a lifetime maximum of one thousand seven hundred and twenty-five dollars ($1,725 .00) per individual .

In addition to the above amounts listed in Articles 22 .01 (a) and (b), each employee will be covered by a Health Care Spending Account up to a maximum amount of $500 per benefit year. Benefit year for the Health Care Spending Account will be set up effective October 1, 2016 and run from July 1 to June 30 of each year .

(c) Group Life Insurance Group Life Insurance at two times regular

annual earnings rounded up to the nearest thousand dollars for all employees, except where an employee turns 65, the benefit is reduced by 50% and coverage will terminate at age 70 . Group Life $10,000 for employee’s spouse and $5,000 each for employee’s children . The employee

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will have an option to purchase additional insurance through payroll deduction subject to the Insurance Company’s rules .

(d) Weekly Disability Benefit Weekly Disability Benefit provides

seventy-five per cent (75%) of regular gross weekly earnings for a maximum period of 15 weeks . Waiting Period: 0 days - injury; 4 days – illness .

(e) Long Term Disability Benefits Long Term Disability Benefits to provide

seventy-five per cent (75%) of regular gross earnings to a maximum of three thousand dollars ($3,000 .00) per month after 210 days of continuous Total Disability .

22 .02 Paragraph 22 .01 provides a summary of the benefit plans now in force and does not provide details contained in the master contracts which are the official governing documents .

22 .03 When an employee is absent from work for any reason, benefit premiums presently paid by the Company falling due within 6 months of the commencement of such absence will be paid by the Company provided that such is permitted by the particular plan . Thereafter, if so permitted, such premiums will be paid at the Employee’s

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expense only if satisfactory prior arrangements have been made by the Employee with the Company .

22 .04 All payment of premiums will cease on termination of employment .

22 .05 Pension Plan (a) All full time Employees may join the

plan after one (1) year of continuous employment . Employees now members of the plan or who subsequently join the plan may elect prior to December 1 of each year to cease or resume making contributions for the following calendar year . Such an election must be made in writing on a form provided by the Company and must be for a calendar year . The responsibility for making the election shall be the Employee’s and if no change is received the Company will continue to deduct or not deduct contributions in accordance with the last filed election.

(b) If the Employee does not take action or the Company is unable to take action by reason of the Employee’s failure to comply with Article 22 .05 (a) any loss suffered by the Employee, heirs or assigns shall not result in any liability upon the Company .

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(c) Each contributing member of the pension plan will be entitled to direct into which of the available investment funds the employee wishes his/ her and the Company’s contributions to be invested . The Company reserves the right to set the default fund for unassigned contributions and to change the service provider if so determined during the life of this contract .

(d) All contributions are locked in and vested

immediately effective July 1, 2012.

(e) The Company and the Association will continue the joint Pension Committee consisting of two members of the Association Executive and two members of Management .

22 .06 Group Registered Retirement Savings Plan and Tax Free Savings Account

Following completion of the probationary period Employees may elect to participate in the Group Registered Retirement Savings Plan or Tax Free Savings Account by contacting the Human Resources Department .

22 .07 In the event that there are employees who elect to take early retirement between 59 and 65 years of age who have completed 15 years of service from date of last hire

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the Company will arrange to continue Extended Health Care Benefit Coverage for such employees until age 65 . After 65 the Employee shall have the option of continuing with Extended Health Care Benefit Coverage by paying 100% of premiums .

22 .08 A special Early Retirement Bonus of $20,000 shall be paid to Employees who retire on or before their 63rd birthday with fifteen (15) or more years of service.

Article 23 Health and Safety

23 .01 General Policy The Company shall continue to make

reasonable provisions for the health and safety of Employees during the hours of their employment . The Company reserves the right to formulate and review the rules and regulations . All Employees are required to abide by those rules and regulations outlined in this contract and in greater detail in the Health and Safety Manual . Failure to do so will be cause for disciplinary action .

23 .02 Safety Glasses All Employees are required to wear

safety glasses in designated areas . The Company will provide non-prescription safety glasses for all Employees upon

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hiring and will replace broken and/or damaged frames and/or lenses upon return to the tool crib of said broken and/or damaged frames or lenses . All additional requirements will be provided at a cost posted at the tool crib or free of charge with the approval of the Employee’s immediate supervisor .

23 .03 Safety Shoes Employees will be required to wear

approved safety footwear while working in the plant . The Company will, upon presentation of a proper receipt, pay up to one hundred and seventy dollars ($170 .00) toward each pair of safety footwear purchased by Employees, subject to a limit of one (1) pair per Employee during each calendar year, and a minimum interval between purchases of nine (9) months .

Employees working in areas that the wear and tear on safety footwear is excessive may appeal to the Health and Safety Committee for consideration for replacement of safety footwear . The decision of the Health and Safety Committee will be final.

23 .04 Protective Clothing The Company will in its absolute

discretion supply protective clothing to

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Employees if such clothing is required .

23 .05 Hearing Protection Employees working in areas designated

as high noise level areas will be required to wear hearing protection . The Company will provide suitable hearing protection devices to those Employees whose duties require their use .

23 .06 Hair Covering Employees with long hair are required

to wear hair covering to prevent the hair becoming caught in moving machinery . The Company will provide hair nets and/or caps for those Employees requiring their use .

23 .07 Medical Examinations It is confirmed that the Company has the

right to require medical examinations of the Employees from time to time whether or not such examinations are required by law . Employees will present themselves for such examinations upon reasonable notice . It is understood that such examinations will be performed by a doctor selected and paid by the Company . The Company will provide transportation if required by the Employee .

23 .08 Personal Electronic Devices Employees shall not carry on their person

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any electronic device that is not in the absolute discretion of the Company required to perform his/her assigned work .

Article 24 Duration of Contract

24 .01 This Agreement will be in full force and effect on and after the 20th day of October, 2016 to and including the 19th day of October, 2019 and shall automatically be renewed from year to year thereafter unless either party serves written notice of termination upon the other party hereto not more than ninety (90) days prior to the expiration of the Agreement .

All terms included in the Collective Agreement shall be effective from October 20th, 2016 save and except those having a varied date set out in the Agreement .

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These changes are agreed to by both parties on this 271h day of October, 2016.

For the Association:

I

Ray Fisher

ISaiah Friend

"C::::~~~-:::=--Kyle Bulyaki

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Schedule A Rate Rate Rate Effective Effective EffectiveJob Oct. 20, 2016 Oct. 19, 2017 Oct. 18, 2018Classification Assembly Level 1 27.25 27.77 28.27Level 2 25.63 26.12 26.59Level 3 23.85 24.30 24.74Level 4 22.03 22.45 22.85Level 5 19.44 19.81 20.17Level 6 17.56 17.90 18.22Level 7 16.42 17.07 17.37Level 8 15.60 15.89 16.18Level 9 14.84 15.12 15.40Maintenance Level 1+ 29.93 30.50 31.04Level 1 29.00 29.55 30.08Level 2 27.25 27.77 28.27Level 3 25.63 26.12 26.59Level 4 23.85 24.30 24.74Level 5 22.03 22.45 22.85Level 6 19.44 19.81 20.17Level 7 17.56 17.90 18.22Level 8 16.75 17.07 17.37Level 9 15.60 15.89 16.18Level 10 14.84 15.12 15.40Manufacturing Level 1+ 29.93 30.50 31.04Level 1 29.00 29.55 30.08Level 2 27.25 27.77 28.27Level 3 25.63 26.12 26.59Level 4 23.85 24.30 24.74Level 5 22.03 22.45 22.85Level 6 19.44 19.81 20.17

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Level 7 17.56 17.90 18.22Level 8 16.75 17.07 17.37Level 9 15.60 15.89 16.18Level 10 14.84 15.12 15.40Quality Control Level 1+ 29.93 30.50 31.04Level 1 29.00 29.55 30.08Level 2 27.25 27.77 28.27Level 3 25.63 26.12 26.59Level 4 23.85 24.30 24.74Level 5 22.03 22.45 22.85Level 6 19.44 19.81 20.17Level 7 17.56 17.90 18.22Level 8 16.75 17.07 17.37Level 9 15.60 15.89 16.18Level 10 14.84 15.12 15.40 Support Services Level 1 18.36 18.71 19.05Level 2 17.54 17.88 18.20Level 3 16.39 16.70 17.00Level 4 15.11 15.39 15.67Level 5 13.81 14.07 14.33Level 6 12.91 13.16 13.40Level 7 12.09 12.32 12.54Trainee Level 1 17.56 17.90 18.22Level 2 15.60 15.89 16.18Level 3 13.02 13.26 13.50Level 4 11.29 11.51 11.71

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Notes:

1. Employees will be paid a premium of seventy-fivecents($.75)perhourforthe afternoonshiftandapremiumofone dollar($1.00)perhourforthenightshift.

2. Leadhands,ifsoappointedbythe Company, will be paid a premium of onedollar($1.00)perhourovertheir establishedratewhilesoemployed.

Schedule B

ChristmasBonus–equalto$10peryearofservicewithaminimumbonusof$20.00.TobepaidtoallactiveemployeesoremployeesonWSIBorWeeklyDisabilityBenefitasdefinedinArticle22.01(d).

77

October20th2016

Letter Of Understanding – “Has Worked” Definition Article 14.01 (b) (1)

ThisLetterOfUnderstandingcoversthemeaningofthewords“hasworked”referencedinArticle14.01(b)(1).“Hasworked”meansthattheemployeehasworkedinthesameclassification,atthesamelevelorhigher,performingtheirnormaldutiesandhasbeenabsentfornomorethan45daysinanyoneyearperiodofthetwoyearperiodandmustbeworkingatthetimeofthepromotion.The45daysabsenteeismexcludesapprovedabsencessuchasbereavement,courtattendance,vacation and leave of absence.

ThisLetterOfUnderstandingreplacestheLetterOfUnderstanding–“HasWorked”DefinitionArticle14.01(b)(1)datedOctober19th2013.

W.E.(Rick)Moes JohnRiddellGeneralManager President,CMEA

78

October20th2016

Letter Of Understanding – Insurance Issues

ThisLetterOfUnderstandingcoverstheformationofaManagement/Associationcommitteetoreviewinsurance issues and recommend improvement or changesifrequired.

ThiscommitteeisbeingestablishedduetotheconcernsraisedbytheAssociationregardingdelaysininsurancepayments.ThecommitteewillbecomprisedofuptothreeAssociationandManagementemployees.

AManagementRepresentativewillchairandcoordinatethecommitteeactivities.

ThisLetterOfUnderstandingreplacestheLetterOfUnderstanding–InsuranceIssuesdatedOctober19th2013.

W.E.(Rick)Moes JohnRiddellGeneralManager President,CMEA

79

October20th2016

Letter Of Understanding – Cross Training

ThisLetterOfUnderstandingcoverschangestoCross-Trainingrequirements.ThepolicywaschangedeffectiveOctober19th2003asfollows:

• 160hoursto120hours• “two(2)hoursperdaythree(3)daysper week”to“four(4)hoursperweek”

ThisLetterOfUnderstandingreplacestheLetterOfUnderstanding–CrossTrainingdatedOctober19th2013.

W.E.(Rick)Moes JohnRiddellGeneralManager President,CMEA

80

October20th2016

Letter Of Understanding – Assembly Classification

ThisLetterOfUnderstandingcoversstructuralchangestolevelsintheAssemblyClassification.

Five(5)employees,namedbelow,areconsideredtobe“grandfathered”atLevel2ManufacturingClassification.

#1074SavvakisGeorgiou #1019GregDwyer #1029 Randy Stotz #1045JamalNikaeein

AllotheremployeescurrentlyassignedtoAssembly,andnewlyhiredemployeesforAssemblywillbeclassifiedundertheAssemblyClassificationratesofpay.Currentemployeeswillbeclassifiedatthelevelthatmatchestherateofpay.

AssemblyClassificationhasLevels1through8withrestructuredrates,effectiveonthesamedateastheCollectiveAgreement.

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ThisLetterOfUnderstandingreplacestheLetterOfUnderstanding–AssemblyClassificationdatedOctober19th2013.

W.E.(Rick)MoesJohnRiddellGeneralManagerPresident,CMEA

82

October20th2016

Letter Of Understanding – Support Services Classification

ThisLetterOfUnderstandingcoversstructuralchangestolevelsintheSupportServicesClassification.

Theemployee,namedbelow,isconsideredtobe“grand-fathered”atthepreviouslevel1rateofpayat$22.83perhour.

#1126HoangLy

TheabovenotedpayratewillnotchangeexceptforanyannualpercentageincreasethatmaybeagreedtobetweentheCompanyandtheAssociationaspertheCollectiveAgreement.

AllotheremployeescurrentlyassignedtoSupportServices,andnewlyhiredemployeesforSupportServices,willbeclassifiedundertheSupportServicesClassificationratesofpay.Currentemployeeswillbeclassifiedatthelevelthatmatchestherateofpay,withtheexceptionoftheemployeenamedbelow,whowillimmediatelymove to Level 1.

#1047 Eddie Landoni

83

SupportServicesClassificationhasLevels1through7withrestructuredrates,effectiveonthesamedateastheCollectiveAgreement.

ThisLetterOfUnderstandingreplacestheLetterOfUnderstanding–SupportServicesLetterofUnderstandingdatedOctober19th2013.

W.E.(Rick)MoesJohnRiddellGeneralManager President,CMEA

84

October20th2016

Letter of Understanding – Processing Classification

ItisagreedbybothpartiesthattheProcessingClassificationwillberemovedfromtheCollectiveAgreement.

Letter of Understanding – Jane Madill

AsaresultoftheclosingoftheProcessingDepartment,JaneMadillwillbetransferredandgrandfatheredathercurrentwage,intheAssemblyClassification.

W.E.(Rick)MoesJohnRiddellGeneralManager President,CMEA

85

October20th2016

Letter Of Understanding – Maintenance Premium

Thepartiesagreethatduetomarketconditionsbeyondthecontroloftheparties,thecompanywillimplementajobpremiumforemployeesintheMaintenanceDepartment(only)whopossesstradecertificationintheformofacertifiedMillwrightorcertifiedElectrician.

Forgreaterclarity,acertifiedMillwrightorcertifiedElectricianhastakentherequiredcoursesorwhohassufficientworkexperience,haswrittenandpassedthelicensingexamandisinpossessionofaCertificateofQualificationfromarecognizedProvincialbody.TheamountofthepremiumwillbeatthediscretionofthecompanyandwillservetoattractandretainskilledtradesatMagellanAerospace,Kitchener.ThecompanywilldiscussthepremiumwiththeAssociationpriortoanychanges.

ThecompanyagreestogivethesamepremiumtoalleligibleMaintenanceClassificationemployeeswhoqualify.

W.E.(Rick)Moes JohnRiddellGeneralManager President,CMEA

86

October20th2016

Letter Of Understanding – Alternate Work Week

ThisLetterOfUnderstandingcovershoursofworkandpayforanAlternateWorkWeekonworkcentersasdefinedbytheCompany.

MondaythroughThursday:

4ten(10)hourshifts(7amto5pm–days &7pmto5am-nights) (work40hours,paidfor40hours)

FridaythroughSunday(Subjectto$1.00perhourpremiumforworking3X12)

3 twelve (12) hour shifts (7am to 7pm – days & 7pm to 7am - nights)

(work 36 hours, paid for 40 hours)

• Every employee working the 4 X 10 hour work week will be allowed to work one half (1/2) hour overtime per shift

• Will be paid the appropriate shift night premium for working 7pm to either 5am (4 X 10) or 7am (3 X 12)

• Twelve (12) hours shifts will be paid a premium of 1 .11 hours per complete shift (12 hours worked, pay for 13 .33 hours) . An employee who does not work his/her complete shift shall not receive the additional one and one-third

87

(1 .11) hours pay unless he/she provides a reason for their failure to work the complete shift which is satisfactory to the Company . The Company’s acceptance of such reason shall not be unreasonably withheld .

• A week of vacation as set out in Article 11 .03 of the Collective Agreement for an employee who is working 4 X 10 hour shifts shall mean four (4) days and a week of vacation for an employee who is working 3 X 12 hour shifts shall mean three (3) days .

TheCompanywillattempttomeetthelabourrequirementsofthisarrangementonavoluntarybasisfromamongqualifiedemployees.Forlabourplanning,itisexpectedthatvolunteerswillcommittoasix(6)monthormoreperiodatatime.Changesinshiftswillbesubjecttothenoticerequirementsdetailedinthecollectiveagreement.

Intheeventthatthereareinsufficientvolunteers,thisshiftwillbemanedbaseduponseniority,withjuniorqualifiedemployeesbeingassignedtakingintoaccountskillandabilitytoruntheselectedwork center.

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Additional Information

• Short-term disability will remain the same based on 75% of a 7-day

40-hour week . Employees working 4 X 10 hours will be eligible for STD pay on the 4th day of disability and employee working on 3 X 12 hours will be eligible for STD pay on the 3rd day of disability .

• Statutory Holiday pay and qualification will remain unchanged .

Any circumstances not explicitly dealt with in this letter will be addressed as required .

Based upon current order levels, the Company’s intent is to only implement the Alternate Work Week to the T1 work center in 2017 and the A81 work center and the Cincinnati work center in 2018 .

This Letter Of Understanding replaces the Letter Of Understanding – Weekend Shifts dated October 19th 2013 .

W.E.(Rick)Moes JohnRiddellGeneralManager President,CMEA

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