....... • • MANUFACTURING AGREEMENT

for

INTEGRA TECHNOLOGIES

Hereinafter referred to as the "Employer"

and

INTERNATIONAL BROTHERHOOD OF BOILERMAKERS IRON SHIP BUILDERS, BLACKSMITHS, FORGERS

AND HELPERS, LODGE #128

706 LITE STREET POINT EDWARD, ONTARIO

N7V 1A6

Hereinafter referred to as the "Union"

Received- union

Reoelt1ed- employer 0 Received- other cm1. DATE

OFFICE OF

MAR - Y 7001 COLLECTIVE BARGAINING

INFORMATION

·-----·-·-------1 Mfl.LE EMPS

-.. --·------ -------·---1 F'iviLE EMPS _____________ ..;.___--;

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.. ,, ·: • •

ARTICLE 1 RECOGNITION AND PURPOSE

1.1 Recognition

The Employer recognizes the Union as the sole collective bargaining agency for it's employees in the service industry working in and out of Lambton County.

This Agreement shall not apply to Timekeepers, Engineers, Office and Clerical Workers, Foreman, and those above the rank of Foreman, and those employees from outside the Sarnia Office.

1.2 Purpose

The purpose of this Agreement is to govern wages and working conditions so as to promote orderly harmonious relations between the Employer and it's employees, and the Union agrees to cooperate with and assist the Employer in every legitimate way to conduct a successful business, bearing in mind that both parties must give service to the public.

ARTICLE 2 MANAGEMENT RIGHTS

2.1 It is an exclusive function of the Employer to hire new employees, retire, classify, direct, promote, demote, transfer, assign shifts, discipline, suspend and discharge employees, and to increase and decrease the working force, provided that a claim by an employee who completed his probationary period that he has been discharged or otherwise disciplined without just cause may become the subject of a grievance and be dealt with as hereinafter provided.

ARTICLE 3 UNION SECURITY AND CHECK-OFF

3.1 The Employer agrees to employ as employees members of the Union in the performance of all work within the scope of this Agreement with the understanding that when necessary Management will be able to instruct and assist as required.

The Employer will deduct &om the first pay period of each month, Union Dues covering all employees engaged on work coming within the scope of this Agreement, also Initiation Fees or Reinstatements covering new employees and promptly remit same together with a list of names of the employees whose Union Dues, Initiation Fees or Reinstatements are so deducted to the Secretary of the Local Union designated by an official representative of the Union. The Union agrees to serve harmless the Employer in any respect to any deductions pursuant to this clause.

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·' • • ARTICLE 4 SENIORITY

4.1 Seniority and ability to perform the work required shall govern when forces are reduced or on recall to work. New employees shall have no seniority, but upon completion of a probationary period of ninety (90) calendar days, seniority shall then be established and dated back to the time ofhiring.

"During such probationary period the Employer shall have the right to discharge or suspend probationary employees and as such will be deemed to be for just cause and such action by the Employer shall not become the subject matter of the grievance or arbitration procedures".

4.2 a) Seniority shall be defined as length of continuous service in the

employment of the company.

b) A laid ofT worker must return to work within three (3) days written notice by registered mail.

c) An employee shall not suffer loss of seniority because of sickness, accident or authorized leave of absence or Union duty.

d) Separate lists of seniority dates shall be supplied once a year to the Shop Steward, and posted on the Bulletin Board. Ifthere are no objections after five (5) working days, the list as posted shall stand.

Employees promoted or transferred to a position outside of the bargaining unit shall maintain seniority for a period of six (6) months from the date of promotion or transfer. Where the assignment is of a temporary nature or due to special circumstances, seniority will be maintained for the duration of the assignment and the Union will be advised regarding the nature and expected duration of the assignment.

-4.3 An employee shall lose his seniority and shall be deemed to have terminated his employment for the following reasons.

a) If the employee quits.

b) If the employee is discharged and such discharge is not reversed through the grievance procedure.

c) If he fails to notify the Employer of intention to resume work for the Employer within three (3) working days following the date on the written notice of recall from the Employer sent by registered mail to the employee's last known address, or fails to report for work within five (5) working days froi:n such notification except for reasons satisfactory to the Em~loy~r.

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·' • • d) If he overstays a leave of absence or vacation without cause

acceptable to the Employer.

e) If he absents himself for two (2) consecutive working days without notifying the Employer unless reason satisfactory to the Employer is given for both the absence and the lack of notification.

(f) If the employee is not at active work for whatever reasons for a period of four (4) months.

g) If an employee uses a leave of absence for a purpose other than that for which the leave was granted.

h) If an employee is retired.

4.4 Subject to Section 4, during periods of layoff, seniority for the purpose of layoff, recall and vacation entitlement will accumulate for a period equal to length of service to a maximum of four (4) months duration. Seniority shall accumulate for a period of up to four (4) months in the case of absence from work due to illness or injury. In the case of an authorized leave of absence, seniority will accumulate for a period of no more than thirty (30) days.

4.5 In the event of layoff and as long as there is work available that he is qualified to perform, the Chief Steward shall be considered as having the highest seniority for the purpose of layoff and recall after layoff. In any event, the Union agrees to indemnify the Company against any complaint or grievance by any Employee that his seniority rights have been violated as a result of application of this Section.

ARTICLE 5 REPRESENTATION

5.1 For the purpose of carrying out the provisions of this Agreement, the Employer shall deal only with the accredited Representatives ofthe Union. The Employer recognizes the right of the union to appoint, or otherwise select a Shop Steward whose duties will be to assist the Employer and the Union in carrying out the provisions of this Agreement.

ARTICLE 6 GRIEVANCE PROCEDURE

It is the mutual desire of the parties hereto that complaints of employees shall be adjusted as quickly as possible, and it is understood that an employee has no grievance until he has first given his Foreman or Supervisor an opportunity to adjust his complaint.

If the employee so desires he may request the assistance of his Steward in order to endeavor to settle his complaint with his Foreman or Supervisor. Should the complaint of the employee not be satisfactorily adjusted within

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. ' • • forty-eight (48) hours, it shall be reduced to writing and may then become a subje.ct for discussion as provided for in the following paragraph.

The grievance shall be discussed at a meeting between the Local Representative of the Union and the Employer. If the grievance is not then settled to the satisfaction of both parties within "five (5) working days" then, at the request of either party to this Agreement, it shall be referred to Arbitration in accordance with the Ontario Labour Relations Act.

If the Arbitration is to be invoked, the request for the Arbitration must be made within ten (10) days after the meeting between the Local Representative of the Union and the Employer.

ARTICLE 7 HOURS OF WORK

7.1 Eight (8) hours per day, 7:30a.m. to 12:00 noon and 12:30 p.m. to 4:00 p.m. five (5) days per week, shall constitute a normal day's work. Starting time for field service work will be adjusted as required.

7.2 Forty (40) hours shall constitute a normal week's work Monday to Friday, inclusive.

7.3 Any employee reporting for work at his regular starting time, or called in at anytime other than his regular time, shall be guaranteed a minimum of four (4) hours' work, or pay in lieu of work, at his regular rate of pay for that day. Call in pay (4 hours) will not apply to hours worked in a continuous shift, before or after.

7.4 Hours of work for each employee can be adjusted to meet service schedules.

ARTICLE 8 SHIFT WORK

8.1 Employer has the right to schedule shifts in field work as required.

8.2 When other than one shift is worked, eight (8) hours work with a shift premium of two dollars ($2.00) per hour over the employee's regular rate per hour shall constitute the second and third shift.

8.3 When an employee is designated for shift work the shift will last three (3) consecutive shifts to be classified as a shift change. If less than three (3) consecutive shifts are worked, all time worked will be paid at prevailing overtime rates.

8.4 Shift premium shall apply on all hours worked on second (2nd) and third (3rd) shifts at the rates provided, also on Saturday, Sunday and all Holidays provided for in this Agreement.

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'• I' • • 8.5 When an employee is required to return to work without an eight (8) hour break, all work performed shall be paid for at the applicable overtime rates, until such time the employee receives an eight (8) hour break.

8.6 Regular day shift hours which fall into the required eight (8) hour break (section 8.5) will be reimbursed at the shop rate, provided the employee(s) report to work after the eight (8) hour break for any remaining regular work hours.

ARTICLE 9 RATES OF WAGES AND CLASSIFICATIONS

9.1 The minimum rates of wages and classifications for all employees covered by this Agreement shall be in accordance with appendix "A" attached to this Agreement.

9.2 When an employee is required to work out of town and is required to stay away from their normal residence and required to stay away from the job site, the affected employee(s) shall be paid (10) hours per day straight time field rate in the Power Division. In the Oil and Gas Division, it shall be either eight (8) hours per day straight time field rate, unless it is recoverable from the client, then it shall be ten (10) hours per day field rate.

9.3 When traveling after the close of the regular working day (provided the employee has met the company's travel arrangements) or on Saturday, Sunday or Holidays, all travel hous will be paid at time and one half (1-112) the employee's applicable shop rate.

ARTICLE 10 OVERTIME

10.1 Overtime rates shall be paid for on the basis of time and one-half (1-1/2) for all hours worked Monday to Saturday after the close of the regular working day. Overtime worked before the start of an Employee's regular shift shall be paid for on the basis of time and half (1-112) rate. Saturdays will be paid at time and half (1-1/2) and double (2x) time shall be paid for all work performed on Sundays, and recognized holidays.

10.2 If an employee is required to work on one of the paid Holidays, he shall be paid double (2x) time for hours worked plus payment for the Holiday if qualified under Article 12 Paid Holidays.

10.3 For a technician to qualify for an overtime meal a twelve (12) hour continuous shift is required for the first overtime meal and four (4) hours thereafter (i.e. 16 hour continuous shift). The first meal to be taken after ten (10) hours but before eleven (11) hours of a shift. Employees will be

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• • provided with a thirty (30) minute meal break at the applicable overtime rates for these meals.

10.4 The minimum out of town per diem thirty five ($35.00) dollars for per diem and meal amount per day in Canadian funds in Canada and in the United States funds anywhere else.

The minimum amount per meal will be eighteen ($18.00). If the customer has higher overtime meal rate in place then, that rate will apply.

10.5 It is the intent of the Company to distribute overtime in a fair and equitable manner amongst those employees qualified to perform the work available. When overtime is required it will be offered to the Employee(s) who normally works in the same general area of the plant with due regard to the work in question, the classification(s) effected and the Employees who have the required skills and who have a lower accumulated overtime record than other similarly skilled Employees. When an Employee is unavailable for, or refuses overtime work, the requested overtime hours will be charged against the Employee on the list as having worked.

The Chief Steward may review the overtime record at the Personnel Office and discuss the distribution of overtime with Management if an apparent inequity exists.

New Employees will be assigned the average overtime ofEmployees in the same classifications following completion of their probationary period. Similarly, Employees absent from work shall be assigned the average overtime of Employees in their department that accrued during their absence upon their return to work.

As the intent is to emerge with a fair distribution over an annual period, the overtime record will be reviewed with the ChiefSteward quarterly and the overtime distribution list will be returned to zero at the end of each calendar year. A claim by an employee that overtime has not been fairly distributed must be initiated within five (5) working days following posting of the overtime record at the time of each quarterly review.

10.6 An Employee may refuse an overtime request except in emergency situations or when a sufficient number of qualified employees cannot be scheduled to perform the work required to which case Employees will be obligated to do overtime work. For the purpose of this Article, the word emergency means an unforeseen situation whose solution cannot be postponed and which requires an immediate intervention and in such event the ChiefSteward will be informed when feasible to do so.

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• • ARTICLE 11 VACATIONS WITH PAY

.. 11.1 All employees shall be paid holidays with pay by the Company at the rate of four percent (4%) of the Employees' total earnings, provided this is not less than Provincial Statutes call for.

11.2 All employees with up to four (4) completed years of service with the Company, as of the date ofhire, shall be entitled to two (2) weeks vacation at the rate of four percent (4%) ofthe Employee's total earnings.

11.3 All employees with four (4) completed years to eight (8) completed years of service with the Company as of the date of hire shall bel entitled to three (3) weeks vacation and at the rate of six percent (6%) of the Employee's total earnings.

11.4 All Employees with eight (8) completed years of service with the Company as of date of hire shall be entitled to four (4) weeks vacation and at the rate of eight percent (8%) of the Employee's total earnings.

SYNOPSIS OF VACATION PROVISIONS:

Years of Service as of Date of Hire

0 to 4 years 4 to 8years 8 years or more

Time Off

2 weeks 3 weeks 4 weeks

4% 6% 8%

11.5 If a paid recognized Holiday falls within an employee's regular vacation period, the vacation period will be extended by one day for which the employee will be paid eight (8) hours at his regular straight time rate.

ARTICLE 12 PAID HOLIDAYS

12.1 The following Paid Holidays, eleven (11) full days as indicated below will be recognized by the Company.

Boxing Day Good Friday Dominion Day Labour Day Christmas Day

New Year's Day Victoria Day Civic Holiday Thanksgiving Day Two (2) Floaters

A new Employee will not be paid holiday pay until he has completed thirty (30) days of employment.

12.2 ShouRd any of the above Holidays fall on a day outside of the standard work week, i.e., Monday to Friday inclusive, the day observed shall be classed as the Statuary Holiday and paid for at the overtime rates.

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• • 12.3 An employee must be at work the first working day of scheduled shift before a Holiday and be at work the first day or scheduled shift after, to be paid for the Holiday, unless absent for just cause. The employee may be disciplined unless he gives the Employer twenty-four (24) hours notice before the holiday.

12.4 Floater days will be granted at the discretion of management to accommodate peak work periods. Employees will be given seventy-two (72) hours prior notice in the event management needs to cancel a request. The employee is required to give the company five (5) days advance notice of intended usage of a floater. If the company fails to give seventy-two (72) hours notice then overtime rates for paid holidays shall apply. In either circumstance the floater shall be rescheduled.

ARTICLE 13 JURY DUTY & SUBPOENAED WITNESS

The Company shall pay to an employee who is actively and who may be required to serve as a juror or is subpoenaed as a witness in any court of law in the Province in which he resides, the difference, if any, between the amount paid to him for his jury service or witness service and his regular rate for the standard hourly day prevailing during the same period of time, upon presenting to the Personnel Department, proof of the amount of payment received for such service, provided these are days the employee would normally have reported for work and providing that the employee has given notice to the Personnel Department ofthe requirement to be absent from work at least one full shift prior to leaving work to act as a juror or witness. Not to exceed ten (10) working days.

ARTICLE 14 BREAK PERIODS

14.1 There shall be two (2) break periods of fifteen (15) minutes each per shift and five (5) minutes wash-up time before Lunch and at the end of shift. In case of overtime there will be a paid ten (10) minute break at the end of the regular shift.

14.2 In the Servicing Group break periods may vary according to scheduling.

ARTICLE 15 SCOPE OF AGREEMENT

15.1 The wage rate and working conditions contained in the Agreement shall apply to all work performed by the Employer in their Shop and field service work.

ARTICLE 16 HEALTH & WELFARE

16.1 Union Agrees to the Current Plan now in effect.

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• • 16.2 Protective Clothing. Includes noma:x: coveralls and parkas.

16.2a All employees after three (3) months seniority shall qualify for one hundred and fifty dollars ($150.00) per contract year for Safety footwear upon presentation of a receipt.

16.2h Due to the nature of the work the company agrees to supply clean coveralls or smocks on a daily basis, and will be responsible for the leaning of them.

16.2c Gloves to he supplied to all employees as required,

16.2d Company agrees to keep on site proper First Aid & Safety Equipment, and ensures it will he properly stocked at all times.

16.2e Company agrees to provide the cost of Safety Prescription Glasses once every two (2) years up to one hundred and fifty ($150.00) dollars after three (3) months seniority and upon presentation of receipt.

16.3 "It is expressly understood that the foregoing is not to be construed as a guarantee as to specific coverage or eligibility for benefits. These will be in accordance with the provisions of the specific policies held".

16.4 Not to apply to Temporary Employees. (i.e. Summer Students, Co-op Students, etc.)

16.5 Tb.e company shall provide three (3) paid sick days per contract year for all union employees.

ARTICLE 17 NO STRIKES OR LOCK-OUTS

The Union agrees that there will be no strikes or other collective action which will stop or interfere with production, and if any such collective action should be taken, it will instruct those of its members who participated in such collective action to carry out the provisions of this Agreement and return to work and perform their work in a manner acceptable to the Employer. The Employer agrees that it will not cause or direct any lock-out of its employees.

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i! • • ARTICLE 18 PENSION FUND

Employer/Employee contributions shall be three percent (3%) each, of gross wages in Year one (1) and four percent (4%) each of gross wages in Year two (2) and each year thereafter.

ARTICLE 19 BEREAVEMENT LEAVE

In the event of the death of a Father, Mother, Wife, Brother, Sister, common law spouse, Son or Daughter of an employee who has completed the probationary period and is actively employed at the time of,the bereavement, the Company shall grant a leave of absence with pay not exceeding three (3) days at the time the death occ-urs providing these are days the employee would normally have reported to work. In the event of the death of a mother-in-law or father-in-law, brother-in-law, sister-in-law, grandchild or grandparents of the Employee, the Company shall grant three (3) days leave of absence with pay for the purpose of attending the funeral, providing these are days the Employee would normally have reported to work. lfthe employee does not attend the funeral, the employee shall be granted one days leave rather than three (3) days leave as provided for in the previous sentence.

ARTICLE 20 JOB POSTINGS

All new job openings or vacancies occurring within the Sarnia plant will be posted to allow existing employees to apply for a period of (3) working days.

The Employer will determine the successful candidate to a job posting by considering the requirement, and efficiency of operations, the knowledge, training, experience, skill and present ability of the individual to perform the required work. Where there are in the opinion of the Employer, equal, the employee with the greatest seniority will receive the promotion.

Where no employee meets the qualifying factors under this article, the Employer shall be free to fill the job at its discretion.

ARTICLE 21 DURATION AND RENEWAL OF AGREEMENT

21.1 This Agreement shall become effective January 1, 2001 and shall remain in full force and effect until December 31,2003, and year to year thereafter unless eitlier party shall, at least thirty (30) days prior to any anniversary date thereafter, notify the other party of this Agreement in writing of any proposed changes to this Agreement.

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• • 21.2 Any such notice shall be specific as to the Sections of the Agreement to be affected thereby and negotiations shall be limited to such Sections. In the event such notice is given the parties shall meet not later then fifteen (15) days after receipt of such notice, and shall conclude negotiations without unnecessary delay.

SIGNED ON BEHALF OF: SIGNED ON BEHALF OF:

INTEGRA TECHNOLOGIES INTERNATIONAL BROTHERHOOD

OF BOILERMAKERS LOCAL 128

'ld1tl zL:£ Neil McCabill -Manager Oil & Gas Sarnla

Steve David -Steward Local l!l8

Terry McCarver- Manager Power Division

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• • LETTER OF INTENT

MOVEMENT OF LABOUR

When existing technicians from Lambton County Levels are exhausted in their classification, company may transfer in technicians from Ontario or the USA. All employees will be subjected to pay prevailing union dues. Company agrees not to utilize additional manpower from non union sources but only to hire from Local 128 offices.

Levell

Level II

Level Il(a)

Level III

Level IV

• • FIELD CLASSIFICATION DEFINITION

Passed the three month trial period showing sufficient attitude with tensioning and torquing equipment and understanding of service work and the requirements for progressing to Level II and above.

Has the ability to use tensioning and torquing equipment, make all bolting calculations, be proficient with ultrasonics.

Has all of the above requirements, but with an added skill outside ofthe expected abilities oftechnician which adds to the company's efficiency and

productivity.

Had all the previous Level capabilities (Level II or II(a)) plus the ability to organize the labour force and tools to best display the company's efficiency. Also has the ability to make calls in the company's name on special applications of controlled bolting.

Has all the previous Level capabilities but is charged with the day to day running of services, filling in for service manager and handling inquiries by customers, repair work to be carried out, which people to go to jobs. The Company expects to have one Level IV at one time.

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Classification

Shop

Level I Level II Level Il(a) Level III Level IV

Field

Level I Level II Level II(a) Level III Level IV

• APPENDIX A

RATES

Jan. 1, 2001 Jan 1, 2002

$12.62 $12.87 14.38 14.67 15.74 16.05 16.89 17.23 17.79 18.15

$17.02 $17.53 20.32 20.93 21.74 22.39 24.54 25.28 25.48 26.24

•

Jan.1, 200l3 .JJ .~

$13.13 ' 14.96 16.37 17.57 18.51

$18.06 21.56 23.06 26.04 27.03

Signing bonus ofTwo Hundred Dollars ($200.00) will be provided.

All wages and benefits to be retroactive to January 1, 2001.