ORIGINAL

COLLECTIVE AGREEMENT

BETWEEN

PEPSICO FOODS CANADA

CAMBRIDGE, ONT ARIO

AND

THE UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION (UNITED

STEELWORKERS or USW) ON BEHALF OF ITS LOCAL 4610

TRANSPORT DRJVERS

...... .

2016-2021

INDEX OF ARTICLES

ARTICLE 1 - OBJECT Of AGREEMENT ................................................................................................................. 3

ARTICLE 2 - SCOPE ANO RECOGNITION .......................................................................................................... ... 3

ARTICLE 3 - NO DlSCRIMINATION ................................................................... ..................................................... 3

ARTJCLE 4 - MANAGEMENT RIGHTS ............................................................................................................ ....... 3

ARTICLE 5 - UNION SECURTTY AND REPRESENTATION ................................................................................. 4

ARTICLE 6 - CO-OPERATION .......................... ........................................................................................................ 5

ARTICLE 7 - ADJUSTMENT OF GRIEVANCES ..................................................................................................... 5

ARTICLE 8 - SENIORITY ....................................... ..... ..... ......................................................................................... 7

ARTICLE9-VACATIONS WITH PAY .................................................................................................................... 8

ARTICLE l O - PAID HOLIDAYS ........................................................................................................ ....................... 9

ARTICLE 11 - BEREAVEMENT ALLOWANCE AND JURY PAY ........................................................................ 9

ARTICLE 12 - LEA VE OF ABSENCE ............................................................. ................................ , ....................... IO

ARTICLE 13 ·LAY-OFF AND RECALL ...................................... ........................................................................... l l

ARTICLE 14 - SAFETY, HEAL TH ANO SANITATION ........................................................................................ 11

ARTICLE l:S -TERMINATION ALLOWANCE ...................................................................................................... 12

ARTICLE 16 - HOURS OF WORK AND OVERTIME ............................................................................................ 12

ARTICLE 17 - WAGES AND JOB RATE RULES ................................................................................................... 13

ARTICLE 18 - FILLING OF POSITIONS ................................................................................................................. 13

ARTICLE 19- BENEFITS ................................................. .................................................... , ............... , ... , ... , ... ,.w·•·· 13 .

.. . ARTlCLE ic( GENERAL PROVISIONS ~.u ... :: .. : ............. :.:.-.:uo .. , .... : ...... : ... · ... · .. ·.: .. :. ..... : ..... :.~ . .:.:~.u ........ ,o ................ 14

ARTlCLE 21 • TERM OF AGREEMENT .................................................................................................. .............. . 14

APPENDIX "A(l)" .. ......................... .. ............ ............................................................................................................ 15

APPENDIX "A(2)" .................................................... ................................................................................................. 16

LEITER OF UNDERSTANDING; GROUP RRSP CONTRrBUTION ................................ ........... ......................... 17

LETTER OF UNDERSTANDJNG: MONETARY ADJUSTMENTS ....................................................................... 18

LETTER OF UNDERSTANDING: SHIFT PREFERENCE ............................................ .. .................... .................... 19

LETTER OF UNDERSTANDING: TEMPORARY AGENCY DRIVERS ....................................... ..................... ... 20

LETTER OF UNDERSTANDING: VACATION ALLOCATION ........................................................................... 21

LETTER OF UNDERSTANDING: UNION OR1ENTAT10N .................................................................................. 22

LETTER OF UNDERSTANDING: CAPITAL INVESTMENT ................... ............................................................ 23

LETTER OF UNDERSTANDING: SHUNTERS ........... ........................................................................................... 24

LETTER OF UNDERSTANDING: COMPONENT PAY ......................................................................................... 25

LETTER OF UNDERSTANDING: LASR DRlVERS AT PEPSICO FOODS CANADA CAMBRIDGE FACILITY .................................................................................. ............ .............................................. ........................................ 26

LETTER OF UNDERSTANDING: OTR RUNS .................................................................... ................................... 27

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COLLECTIVE AGREEMENT

Between PEPSICO FOODS CANADA,

CAMBRIDGE, ONTARIO (Hereinafter called the "Company")

And

THE UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL

. UNION (UNITED STEELWORKERS or USW) ON BEHALF OF ITS LOCAL 4610 {Hereinafter called the "The Union")

ARTICLE l - OBJECT OF AGREEMENT

1.0 I The purpose and the intent ofthis Agreement is to provide co-operation and harmony, and to provide a channel through which infonnation and adjustment of problems may be transmitted from one to another, as well as to cover hours, wages and working conditions.

l.02 lt is further agreed that the development of a proper relationship can only be achieved and maintained by a reasonable and sensible approach, recognizing that the best possible working conditions are the objective of both parties.

ARTICLE 2 - SCOPE AND RECOGNITION

2.0 l The Company recognizes the Union as the sole and exclusive bargaining agent of employee Transport Diivers of PepsiCo Fo.ods Canada at Cambridge, Ontario save and except supervisors, persons above the rank of supervisors, office, cle1ical and technical staff, sales staff, sales operations staff and students employed during the school vacation period.

2.02 Persons not in the bargaining unit may perform any work assigned to them by management unless it prevents the recall of laid-off employees where the re..call wol!M bl! f9r n,Qfe th~_two (2) w~.ks .. . . ... . .-. -· . ........... - . . ... ··- . ,•. .. .. . . . .

ARTICLE 3 - NO DJSCRIMINAT10N

3.01 Thete shall be no discrimination by the Company or the Union against an employee because of race, creed, age, colour, sex, marital status, nationality, ancestry, or place of origin, or religious, political, sexual orientation, disability or Union beliefs.

The Company and union will comply with the Ontario Human Rights Code.

ARTICLE 4 ~ MANAGEMENT RIGHTS

4.01 The Union acknowledges the right of the Company to manage its business in all respects, to direct the work force, and to introduce new or improved methods and facilities.

4.02 The Union further acknowledges that it is the function of the Company to hire, promote, demote, transfer and lay-off employees, and to suspend, discipline an.d discharge employees for just and sufficient cause. Any exercise of these rights in conflict or inconsistent with the provisions of this Agreement shall be subject to the provisions of the grievance .procedure as set forth herein.

4.03 The listing of specific rights in this Agreement is not intended to be nor shall it be restrictive of, or a waiver of, any of the rights of management not listed and specifically surrendered herein, whether or not such rights have been exercised by the Company in the past.

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ARTICLE 5 - UNION SECURITY ANO REPRESENTATIO~

5.01 The Company sh~U deduct Union dues including, where applicable, initiatio.n fees and assessments, on a weekly basis, from the total earnings of eamings of each employee covered by this agreement. The amount of dues shall be calculated in ,i.ccordance with the Union's Constitution.

All dues, initiation fees and assessments shall be remitted to the Union forthwith and in any event no later than 15 days following the last day oftbe month in which the remittance was deducted. The remittance shall be sent to the International Secretary Treasurer of the United Steelworkers of America, AFL-CIO­CLC; P.O. box 13083 Postal Station 'A', Toronto Ontario M5W IV7 in such form as shall be directed by the.Union tci the Company along with a completed Dues Remittance Form R-115. A copy ofthe Dues Remittance Form R· l 15 will also be sent to the Union office designated by the Area Coordinator.

The remittance and the R-115 form shall be accompanied by a statement containing the following information: • A list of the names of all employees from whom dues were deducted and the amount of dues deducted: • A list of the names of all employees from whom no deductions have been made and reasons: • This infonnation shall be sent to both Union addresses identified in paragraph two {2) aboye, in ~;uch

form as shall be directed by the Union to the Company.

Tite Company, when preparing T 4 slips for the employees, will enter the amount of Union dues paid by the employee during the pl'evious year.

5.02 In event that Union dues are inc1·eased during the tenn of this Agreement, the Company shall be given twenty~one {21) days' prior notice.

5.03 The Union shall indemnify and save harmless the Company, including its agents and employees, from any and all claims or actions, brought by an employee arising out of or in any way related to the deductions made in accordance with this artic]e.

5.04 The Company agrees that upon receipt of written authorization, it will deduct the initiation fee from the wages of an employee joining the Union after the ratification of this Agreement.

5.05 All employees as of the signing of this Collective Agreement who are members of the Union, and atl employees who become members after such date, shall remain members of the Union .

.5.06 The Company agrees to recognize employees of the Company (excluding probationary employees), elected or appointed as Stewards to deal with matters under the scope of this Agreement. There shall be a mmcimum of one (1) Steward for every twenty-five (25) employee~-~ tlle bargajn.i.ng 1,1.nH, plµ$_a Unit . Chairperson. · · .. · · · · · ··· · · · · · .. · · · · ·

S.07 Ifan employee so desires, he will be accompanied by the Steward or Traffic Unit Chairperson when being interviewed by a management representative relating to any fonn of disciplinary action by the company. If the-employee is called to a meeting for the purpose of being terminated, the Unit Chair, Chief Steward or the local Union President shaH be present.

5.08 No Steward or member ofa Union committee shall leave his post of duty during his normal working hours to discuss grievances with employees ancllor Union Representatives without first receiving permission from his immediate Supervisor. This pem1ission will not be unreasonably withheld. The Supervisor shall provide where necessary relief and such relief shall be with.in a reasonable period of time. The Company agrees to pay the regular hourly rate for time so spent, or for time spent in meeting with the Company.

5.09 The Company shall provide a bulletin board for the use of The Union upon which the Union shall have the right to post notices relating to matters of interest to the Union and the employees. The contents of such notices shall not contain anything detrimental to Company interests.

5.10 The USW Staff Representative or other known Executive of the l/nion may make arrangements with the HR Manager or his appointee to enter the plant chu·ing business hours to interview employees for the purpose of hearing grievances. It is understood that such visits will be Limed to cause as little disruption as possible to the normal conduct of business. It is further understood that Representatives of the Union will comply with Company regulations and restrictions.

S.11 The Company agrees to recognize a Negotiating Committee ofup to three (3) employees. One (i) employee shall be the Unit Chair and the two (2) remaining positions shall be elected from the bargaining unit, for the purpose of negotiating amendments to this Collective Agreement. Negotiating Committee members will be compensated at their regular rate of pay for each day of negotiations.

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Providing sufficient notice is received, time off without pay will be granted to members of this Committee for preparation and negotiating purposes.

5.12 It is understood that the Company is currently sub-contracting work, however it is agreed that the Company will not increase this practice to the detriment of the current drivers. ·subcontractors shall not cause a layoff and/or prevent the recall of bargaining unit members. Nor shall subcontractors perform any bargaining unit work ih bargaining unit member(s) is on layoff.

ARTICLE 6 - CO-OPERATION

6.01 During the term of this Agreement the Company agrees that there sha!I be no lock-out of employees and the Union agrees that tl1ere shall be no stiike.

Neither the Union, nor any of its stewards, officers or representatives, shall order, encourage or support a slow-down or a walk-out.

6.02 No employee shall conduct Union activities during working hours except as specifically permitted in this Agreement.

6.03 The Company and the Union agree to establisl1 a Labour Relations Committee which is to be comprised of Management Team representatives and Union Committee representatives. Provided representation by management and the union is reasonably balanced, the size of the committee may vary by mutual agreement in order to ensure the effectiveness of the meetings.

The role of this Committee is to provide a forum for the frank exchange of information, views, and advice on workplace issues, between the Company and 1he Union.

The Committee will meet at a time mutuaHy ngreed to by both parties.

ARTICLE 7 - ADJUSTMENT OF GRJEV ANCES

7.01 Should any difference arise between the Company and any of the employees, or between the Company and the Union, as to the interpretation, application or alleged violation of any of the provisions of the Agreement, an earnest effort shall be made to settle such differences without undue delay in the following manner:

Step One: Prior to the !?Ubmission of a written grievance, the employee, accompanied by his Steward If he so desires, within seven (7) days after the incident, discuss the matter with his immediate Business Unit Leader (or designate) and Supervisor. The Business Unit Leader (or designate) shall give his decision verbally within three (3) days to the employee. Shon Id the is~ue nofb,rsatisfacfortly settled; then: · .Step Two: The employee concemed, accompanied by his.steward, ifhc so desires, within ten (10) day, after the incident must submit a written grievance to the Human Resources Department who shall give bis answer within three (3) work days. ShDuld the grievance not be satisfactorily settled then;

Step Three: The Unit Chairperson or designate, the grievance committee, the grieved employee and his Steward, and a full-time Representative of the Union shall meet with the Human Resources Manager and Representatives of Management within thirty (30) work days after the decision has been received at Step Two. The Company will render its decision within ten (IO) work days following such meeting and the Union will respond within lO work days ofreceiving the Company's decision. Should the grievance not be satisfactorily settled, then it may be dealt with as hereinafter provided by Arbitration. The Company shall pay Jost time for attending the grievance meeting for only the Unit Chairperson, Chief Steward and the representing Steward. Grievance meetings shall be scheduled to accommodate the G1ievor and representing Steward. The Union may have no more than six (6) representatives at any ·grievance meeting.

Any grievance not appealed from the decision at Step 2 of the Grievance Procedure within three (3) work days, shall be considered settled on the basis of the last decision.

7.02 The time limils mentioned in Article 7 may be extended by mutual agreement between the Human Resources Manager and the Unit Chairperson in writing.

7.03 Jn the case where there is a mistake on an employee's pay stub exceeding one-hundred dollars ($!00.00), the Company will reimburse the employee within three (3) working days, by direct deposit, after being informed of the problem.

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7.04 Any difference arising directly between the Company and the Union as to the interpretation, application or alleged violation of any of the provisions of this Agreement may, if deemed necessary, be submitted by either party to the other at Step Three of the griev_ance procedure, within thirty (30) calendar days from the date on which the matter at issue arose.

7.05 In the event that an employee receiYes a S day suspension, is discharged or involuntarily terminated from his employment, and believes that the action is without just and sufficient cause, or is in violation of any of the provisions of this Agreement, such action may, if deemed necessary, be expedited to Step Three of the grievance procedure, provided however, the grievance is filed within seven (7) calendar days from the date of said action.

7.06 n) The Company shall not be required to recognize a grievance submitted by an employee after ten (10) work days have elapsed from the date of the incident.

b) AU disciplinary actions must be lssued to an employee within fifteen (15} caleDdar days from the time the information or facts became known to the <;ompany, otherwise the discipline will be considered null and void.

7.07 Should the Company and the Union fail to reach agreement upon any grievance dealt with by them, then either party may refer it to Arbitration within twenty-one (21) calendar days after receiving the reply of the Compll11y at Step Three as follows:

7.08 It is agreed that disputes which are carried to the Arbitration Stage shall be heard before a single Arbitrator. The Company and the Union, having expressed confidence in the ability of the undennentioned persons, agree that they shalJ be called to arbitrate on a rotation basis and in order of their listing.

Selection will be made from the List of Arbitrators in the manner indicated below: l. Rick MacDoweH 2. Mary Lou Tims 3. Margo Newman 4. Larry Steinberg 5. Paula Knopf 6. Matthew Wilson

If the Arbitrator. whose turn is indicated, cannot act within forty-five (45) days, the succeeding names will be approached in order until an Arbitrator is reached who can sit within forty-f"ive (45) days. It is anticipated that the Arbitrator will submit the award within thirty (30) days from the dale of hearing.

7.09 No matter shall be submitted to arbitl'ation which has not been properly carTied through all steps of the grievance procedure.

7.10 The Arbitrator shall not make any decision inconsistent with this Agreement, nor altet, modify or l'IJllend any part of this Agreement, but sha~I o~Jy consider_the_ <JUB~tion in_dispqte.

7. I 1 In the case referred to in Article 7.05, the arbitrator has the discretion to uphold the Company's action or impose such other penalty as he deems appropriate in the circumstances.

7.12 The cost of the arbitrator shall be shared equally by the parties. Each party will pay its own costs, including those of its representatives.

7.13 A copy ofall written reprimands issued to any employee wi!! be sent to the Traffic Unit Chairperson. Such letter will not remain on an employee's file for longer than one (1) year unless there has been a further written reprimand.

Notes documenting consultations will be on file for three months. If consultations are followed by a written reprimand, these consultations will remain on tile as described above.

If discipline is delayed due to an investigation, the discipline shall be issued from the date of the infraction, not when the investigation has been completed.

7.14 In cases of suspension, suspension pending investigation and dismissal, the employee will be advised in writing, with a copy to the Union, at the time of the suspension, suspension pending investigation or dismissal of the reason for the action.

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ARTICLE 8 - SENIORITY

8.01 Seniority is the principle of granting preference to employees in accordance with an individual's accumulated service, but only when an employee has the qualifications necessary to fill the nom1al requirements of the job in a competent manner. Seniority rights will aPPIY only to the extent expressly provided in this agreement.

8.02 An employee will be considered on probation until he has completed 640 hours of actual work, including training, within a six {6) month period in the service of the Company. If found suitable, and on completion of the probationary period, the name of the employee will be placed on the seniority list dating back to the first day of the employee's probationary period. Except in circumstances where a breach of statutory rights has occurred, probationaiy employees will not have recourse to the grievance and arbitration proc·edure.

8.03 In cases of lay-offs for lack of work and in recall, seniority shall govern and shall be subject to the matter of qualifications referred to in Article 8.01 and Article 13.

8.04 The Company shall prepare and post the seniority list on a secured bulletin board and provide a copy to the Union. The list shall be revised every six (6) months.

8.05 rn event an employee is laid off for lack of work, such employee shall retain his senioriiy for a period of eighteen (18) months, and be entitled to recall. Within forty-eight (48} hours of being advised ofa recall, such employee must notify the Company of his intent to retum to work and make himself available for work within fourteen (14) calendar days after receiving such notice, providing the recall is for more than two (2) weeks. Subject to the provisions of the respective Benefit Plans, participation in such plans will tenninate at the end of six months from date of Jay-off, provided employees continue to contribute their required benefit premium.

8.06 Termination of employment and loss of seniority shall be deemed to have occurred ifan employee: (a) resigns; (b) retires;

(c) is discharged for Just cause and is not reinstated; {d) fails to return to work in accordance with the provision of Article 8.05;

{e) fails to return to work after the completion of a leave of absence on the date mentioned in the .. $ig,1~d.leav(: of absence form imless a reason -satisfactory.to the Company is given by the·

employee;

(f) is absent for three {3) consecutive work days without notifying the Company, unless the employee was absent for reasons beyond his control;

(g) is on continuous lay-off for the period stipulated in Article 8.05;

(h) has received termination allowance in accordance with Article 15.

8.07 When an employee is transfened out of the bargaining unit to a permanent salaried position, he shall retain his seniority in the bargaining unit for up to six (6) months. In the event that such employee does not return to his former position wtthin six (6) months, he shall lose his seniority standing in the bargaining unit. Should the employee return to the bargaining unit within six (6) months, such employee will be assigned to an open role within that classification. Should no openings exist, he/she will be assigned to a GIL position with fully accumulated seniority. Employees w111 be eligible to transfer to a permanent salaried role no more than once every rolling twelve (12) months.

8.08 In the event of transfer of operations 10 this plant from other PepsiCo Foods Canada plants, employees possessing particular skills required by the operation shall be allowed lo transfer into the bargaining unit with one (1) month's seniority or such other seniority as mutually agreed between the Company and the Union Committee.

&.09 Any break in seniority described in 8.06 above shall cancel seniority previously accrued. New seniority can be acquired after such breaks only after re-employment, in which case seniority shall date from such re· employment.

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8.10 In the event of a transfer of an employee to the Plant from the Transport Classification on a pennanent basis, sucb employee may be voluntarily assigned a general labourer position with full accur:nulated seniority. This article will not apply on a temporaiy transfer due. to accident/illness where such transfers will be made under an agreement between the Company and the Union.

8.i 1 In titne of war, seniority shall not be broken by reason of active service in the Canadian Armed Forces.

8.12 lfmore than one employee commences work with the Company on the same day, their names wi!l be placed in a container and drawn out one at a time in succession. The names of these employees will be placed on the seniority list in the order their names were drawn, providing they complete their probationary period in accordance with Article 8.02. The local traffic Unit Chair or designee shall be present during the seniority draw.

8.13 It is understood the "Union Committee" referred to in this Collective Agreement includes the following:

Unit Chair (Plant) Unit Chair (Transport)

Unit Chief Steward

Unit Recording Secretary A full-time International representative of the Union if requested by the Union.

Local President

ARTICLE 9 - VACATIONS WITH PAY

9.01 The Company shall grant to all employees covered hereunder vacations with pay as follows:

Employees who have completed one. (I) or more years of service with the Company shall be entitled to two (2) weeks' vacation, with pay based on 4% of their gross earnings in the previous calendar year.

Employees who have completed five (5) or more years of service with tbe Company shall be entitled to three (3) weeks' vacation, with pay based on 6% of their gross earnings in the previous calendar year.

Employees who have completed ten ( I 0) or more years of service with the Company shal I be entitled to four (4) weeks1 vacation, with pay based on 8% of their gross eamings in the previous calendar year.

Employees who have completed twenty (20) or more years of service with the Company shall be entitled to five (5) weeks' vacation, with pay based on 10% of their gross earniogs in the previous calendar year .

. Einployees who ha't'e oompleted twenty-five {25Yormore·years ohervice with the Compan;•(shall be ·· entitled to six (6) weeks' vacation, with pay based on 12% of their gross earnings in the previous calendar year.

Foreacb week of vacation, an employee will receive a minimum of his cunent weekly salary, providing the employee has worked during the calendar year in which the vacation is taken.

9.02 Employees shall receive their vacation pay on the week of their vacation.

9.03 (a) If a paid holiday falls within an employee's vacation, the employee shall at their option receive a day's pay in lieu of the holiday, or a mutually agreed alternate day. This alternate day will not be tmreasonably withheld provided that the employee gives 2 weeks written notice prior to the alternate day on a fonn supplied by the Company. Company will give written authorization within the next five (5) days after notification is given.

(b) In the event the employee asks to use the accumulated holiday with less than the above mentioned notice, and the request does not interfere with distribution, the request shall be granted.

9.04 All Transport Drivers will be called in to the Traffic Resource office between December 1•1 and December 2 l st to select their vacation weeks for the calendar year. Any employee who for whatever reason does not supply his vacation request to his Traffic Resource by December 21 '1 shall forfeit his right to apply seniority to the vacation scheduling process, and sha11 receive vacations in times not already allocated, on a first come first serve basis. Any employee not available between December I sr and December 21 51 can make their request prior to December I $t in writing to the Traffic Resource.

Vacation grievances must be settled by January 30.

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9.05 Each employee may select a maximum of two (2) weeks of their entitlement by seniority. Upon completion of the initial two week selection, each employee will be called back by seniority to select their remaining vacation.

Vacation requests submitted prior to the deadline will be scheduled on a company seniority basis.

Completed vacation schedules will be posted no later than January 151~ of each year.

9.06 Vacations may not be postponed from one year to another and made cumulative. However, an employee entitled to three (3) or more weeks' vacation, may postpone one P) week to be taken in the succeeding year. Six (6) weeks' vacation in a calendar year is the maximum entitlement, and therefore any postponed week must be taken before the calendar year in which the employee becomes entitled to six. ( 6) weeks of vacation.

9.07 Once the vacation schedule is approved by the Company, the employee's vacation cannot be changed without the consent of the employee and the Company.

9.08 Any employee who has three or more weeks annual vacation entitlement rnay opt to not take one week of that vacation time and instead redeem it for the vacation pay they would have otherwise received.

The request or the "cashout" of the vacation pay will be paid on their pay of their first vacation period after May 1. Request for vacation pay must be made by completing a formal request for payout.

ARTICLE 10 • PAID HOLIDAYS

10.01 The following paid holidays shall be observed;

New Year's Day Labour Day Good Friday Thanksgiving Day Victoria Day Day before Christmas Day Canada Day Christmas Day Civic Holiday Boxing Day Day before New Year's Day

There shall he one (1) additional paid holiday, to be taken at a mutually agreeable time between the employee and his/her Resource.

10.02 To be compensated for a paid holiday, an employee must have worked the full required shift immediately prior to and following the day declared by the Company to be the paid holiday, unless such absence is ex~us.ed ~y .the C::ompar1y .. To. Qete.nnine. whether. the absence is .ex.-0used; the Company·wiH consider such ·

· · factors as whether the cfrcumstances were beyond the control of the employee. Absence due to illness will require a doctor's certificate.

to.03 If a paid holiday falls on a Saturday or a Sunday, then the holiday shall be observed on either the Friday prior to the holiday or the Monday ·after the holiday.

I 0.04 An employee who works on a paid holiday will receive his holiday pay and in addition, he will be paid at the rate of double (2) his regular rate for all hours worked.

ARTICLE 11 - BEREAVEMENT ALLOWANCE AND JURY PAY

J 1.01 In the event of a death in the immediate family, an employee will be entitled to a leave of absence, with pay, of up to five (5) consecutive days duration, commencing the day after the death. lmmediate family is defined as: spouse, including common-law spouse; child, step-child, grandchild, and grandparent of the employee orthe employee's spouse; parent of the employee or the employee's spouse; siblings ofthe employee or the employee's spouse; daughter-in-law and son-in-law of the employee or the employee's spouse.

The days, which are to be paid, are limited to those days on which an employee would have regularly been scheduled to work. In the event that an employee is on vacation during thisJime, the consecutive work days offwilJ be added to the end of this vacation.

Paid leaves of absence for one day duration to attend the funeral of other family members may be granted at the discretion of the employee's Manager. Other family members are defined as: aunt. uncle, niece and nephew of the employee or a person who resides in the employee's household as a member of the family. The employee is to report their absence using the formal caH-inprocedure indicating the required leave and the name and relationship of the deceased individual. Upon rerurn, the employee is to provide Human Resources with a Flmeral Home Certificate or other proof of death.

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Employees may be pennitted up to two (2) extl'a weeks of leave in the event of long distance traveling but such extra days/weeks shall be granted without pay.

11.02 When an employee is called upon to serve on a jury or subpoenaed to appear as a witness in a case in which the Crown is a party, the Company shall pay the difference between the fee received from the Crown and the employee's re~ular weekly wage rate, provided: a) the employee furnishes proof of services by a statement of earnings supplied by the Court; b) provides the Company with at least forty-eight (48) hours notice of when he is to report or immediately

on notification; c) returns to work if he is called and not kept; however, he shall not be required to. report for work if less

than two (2) hours of his normal day shift remains to be worked, nor shall he be required to report to work if he is scheduled on afternoon or evening shift;

d) such duty falls on a regularly scheduled work day the employee would have worked.

ARTICLE 12 - LEA VE OF ABSENCE

12.0 I The Company may, in its discretion, grant leave of absence without pay for legitimate personal reasons. Requests for such leave shall be made in writing to their Human Resources Manager, stating the reasons for such request and the proposed duration. The employee shall be advised of the Company's decision in writing at least fourteen (14) calendar days prior to such commencement date. Leaves of absence will not be unreasonably withheld.

12.02 An employee elected as a delegate to a Union Convention shall, upon request in writing received by the Company at least fifteen ( 15) calendar days prior to the commencement date of the leave, be granted a leave of absence without pay not to exceed three (3) weeks without a break in continuity of Company service. The three (3) weeks of leave may be extended at the discretion of the Company. It is agreed that no more thnn one (I) member of the Union be granted such leave.

12.03 A request for leave of absence because of pregnancy should be submitted to Human Resources at least four (4) months before the expected delivery date, and be accompanied by a written note from the attending physician indicating the expected date ofbirtl1 and his recommendation that the employee is physically able to continue working. The Company will allow parental leave to eligible employees in a manner consistent with the Employees Standards Act of Ontario.

12.04 An employee who i~ adClptin_s a c::hi!d w.ill b.e .granted .aJeave of absence without.pay, .for such time as is · . . necessary to fuifill the legal adoption requirements.

12.05 All leaves of absence will be granted without loss of seniority, however leaves of absence will not be granted for the purpose ofallowing an employee tti take another position, try out new work or venture into business for himself. His leave of absence shall be cancelled, and his employment shall be terminated if be engttges in activities other than those for which the leave was granted.

12.06 An employee selected to work on a full-time basis for the Union will, subject to the operating needs of the business, be granted a leave ofabsence without pay for a period not to exceed one (I) year. The request for such leave must be made one (l) month in advance of the date it is to.commence, and not more than one (1) employee shall be granted such leave concurrently under this Article. Such leave will not be unreasonably withheld. During suc11 a leave the Union will pay the company portion of all benefits.

f 2.07 Subject to the operating needs of the business, the company will grant upon 1·equest of the Union, two (2) union members in total to attend union education leave at any one time without pay, not to ex:ceed twenty (20) consecutive work days. Providing such request is made in writing at least 5 work days in advance to the Distribution Mnnager or designate, such leave will not be unreasonably withheld.

12.08 A Bargaining Unit Member(s} who is re.quested and approved by the Union, for a Union Leave, shall continue to be paid by 1hc Company. Upon receipt of the invoice for such leaves, the Union shall reimburse the Company for all wages and benefits etc. paid to the Bargaining Unit Member while on Union Leave.

Transport IO

ARTICLE 15-TERMINATION ALLOWANCE

15.01 An employee, excluding an employee on probation, who is pe1manently laid off due to such causes as transfer or discontinuance of the manufacture of a product, introduction of new equipment or processes, closing of the Plant or part of the Plant, or other causes which, insofar as the Company can determine, ponnanently reduce the work force, shall be entitled to a Termination Allowance, in accordance with the following provisions:

NOTE: For the purposes of this Article, a permanent lay-off is unc!erstood to be a lay-off which is expected to last continuously for a period of at least twelve (l 2) months.

I. The Company will advise the Union as soon BS possible in advance if a peimanent lay-off with Termination Allowance, as provided in this Article, is to take place.

2. An employee who is eligible for Termiuation Allowance shall be paid one week's pay for each completed year of service, to a maximum of fifty-two (52) weeks' pay.

3. Au employee who is permanently laid off may elect to remain on the Company seniority list for possible recall. In such cases, the Termination Allowance payment will be placed in trust with the Ministty of Labour for a maximum duration of recall as per Article &.05, during which time the employee may request payment with a complete break in service.

4. An employee who has received termination allowance will be given consideration for re-hire within the period of one year from date of receiving termination allowance.

5. Termination Allowance shall not be paid: a) To an employee with less than three (3) years' seniority; b) To an employee discharged for just cause; c) To an employee who voluntarily resigns from the Company's employ; d) To an employee who retires from the Company's employ; e) 111 the event of closing the Plant ofpait ofthe Plant due to Acts of Nature, or in times of public

peril, war, disaster or any other reason of similar nature

ARTICLE 16 - HOURS OF WORK AND OVERTIME

16.01 The normal work week shall consist offorty~five (44) hours per week exclusive ofan unpaid meal p!}d9d. The daily schedule ofholits will vary· depeiidiiig tipon "the trip selecdon arid weather conditions. The day . will commence with the scheduled reporting time, and end with the return to the plant, motel check·in or sleeper birth, subject to reasonable expectations of driving time.

16.02 It is understood and agreed that the provisions of this Article are intended only to provide a basis for calculating time worked and shall not be considered a guarantee as to the hours of work per day or the days of work per week. However, the Company will endeavor to provide a nonnal work week to as many employees as possible, as business conditions pennit.

16.03 Upon ratification oftlte contract authorized hours worked in excess of forty-five {44) hours shall be accumulated on an ongoing basis, and paid at time and one-.halfthe employee's regular hourly rate. Regular hours paid but not worked will be carried to subsequent pay periods us owing to the Company. Any net overtime wiH be paid weekly with a one week delay. Not applicable during Component Pay trial period or for any employees on Component Pay.

16.04 There shall be no duplication or pyramiding of overtime payment nor shall the same hours worked be counted as part of the normal wotk week and also as hours for which an overtime premium is payable. Not applicable during Component Pay trial period or for any employees on Component Pay.

16.05 Consistent with efficiency of operations, there shall be a one-half ( 1 /2) hour unpaid mea! period and two (2) fifteen (15) minute paid rest periods in each nine (9) hour work day. For every two {2) hours worked immediately after a nine (9) hour shift, an employee is entitled to one ( I) fifteen (l 5) minute paid break. Not applicable during Component Pay trial period or for any employees on Component Pay.

Tra1tsport 12

ARTICLE 13 - LAY-OFF AND RECALL

13.01 Ifa reduction of staff or lay-off becomes necessary, employees will be laid off in the following order:

(a) Ar,ency and Temporary employees

(b) Employees on probation

(c) Employees in reverse order of their seniority providing the employees retained are able to perform the work available without training, and in a competent manner.

13.02 The Company will not be obligated to apply seniority provisions or notice in any lay-off which does not exceed two (2) consecutive work days. Any recall during the balance of the week will be in the reverse ·order of the lay-off under this clause.

13.03 Except in an emergency, all employees (excluding employees on probation) laid-off in accordance with Article 13.01 shall receive notice when the trip sheets are posted.

13.04 Tite most senior employee will be recalled providing he has the qualifications to perform the work available without training, and in a competent manner.

13.05 An employee who is laid off for more than one (I) week will transfer into the· Plant Bargaining Unit with seniority equal to total company service. He will be placed at the top of the relief driver pool list, and receive rate protection in accordance with Article 17.02 of the plant agreemen(.

ARTICLE 14- SAFETY, HEALTH AND SANITATION

14.0 I The Company shall continue to make reasonable provisions for the safety and health of its employees during the hours oftl1eir employment, including safety installations, personal protective equipment, and such other safety devices required to maintain safe working conditions.

14,02 It is the responsibility of the employee to observe such safety provisions and to [mmedialely advise his supervisor of any unsafe working conditions. Each employee is expected to report promptly all injuries he suffers and all accidents involving the Company's property and equipment which occur while he is on duty.

14.03 Employees must be phys[cally capable of meeting the performance requirements of their job in a safe manner. When that ability [sin question, they must be certified medically capable of performing their job by a qualified doctor of their choice. If they are unable to meet these requirements, the Company will make every reasonable effort to provide. altcniate work or suitable modified work, prior to applying to any applicable benefit plans.

14~04· · In consideration of-the nature oftheCoinj}aiiy's btLsiiiess, the Urifori recognizes .the need for in~fnt~ining . high standards of sanitation and employee health in accordance with federal and Provincial laws and regulations.

14.05 The Company will maintain alt vehicles in safe operating condition in accordance with the Department of Transport regulations. Each drivel' is responsible for reporting any unsafe conditiQn or damage to the vehicle at which time the Company will seek an expert mechanic's opinion. Should repairs be necessary, the work wilJ be done without delay. The Company will provide forms in triplicate for the driver to report any maintenance or unsafe condition of the vehicle; one { 1) copy in the vehicle, one (I) copy for the Traffic Resource, and one (I) copy for the DOT Administrator.

14.06 The Company and the Union agree to establish a Plant Safety Committee which will meet at least once each month or more as required. The Committee is to be comprised of not fewer than four (4) Union Representatives, one of whom shall represent the transport drivers group, appointed by the Union, aud an equal number of Management representatives appointed by the Plant Manager.

14.07 All Company safety policies will be endorsed by the joint Safety Committee before posted on a bulletin board provided for such purposes.

14.08 The Company will pay up to a maximum of one hundred and fifty ($150.00) per calendar year toward the cost of safety shoes purchased by an employee. Additionally, in altemating years, the Company will pay an additional one hundred and fifty dollars ($150.00) toward the cost of winter boots purchased by an employee, commencing in 2012.

14.09 All required medical notes/forms, for the purpose of Class A licensing, will be at the Company's expense.

Trarzsport I I

16.06 All hours worked on the 6th day shall be credited at the rate of one and one-half { l 112) times the hours worked. All hours worked on tl1e 7th day shall be credited at double (2) the hours worked. Not applicable during Component Pay trial period or for any employees on Component Pay.

16.07 The parties recognize that the needs of the business may require the performance of overtime work from time to time, and employees will co-operate in the performance of such work. If an employee is missed under Article 16.09, he wilf be offered an equivalent number of hours at the next available opportunity within thirty (30) calendar days. Not applicable c!uring Component Pay trial period or for any employees on Component Pay.

16.08 The trip report will be placed in the drivers' mail-slot two (2) days in advance, and the trips shall be distributed as fairly as possible to maintain the hours a11d mix ofnms.

16.09 For overtime on employees' days off or for paid holiday runs, these runs will be offered to regular drivers on a rotation basis by seniority starting with the most senior driver.

ARTICLE 17 - WAGES AND JOB RATE RULES

17.01 Basic rates of pay during the term of this Agreement shall be in accordance with Appendix: A.

17.02 a) A driver required to layover will use motels from the recommended list supplied by the Company, and the Company will reimburse the employee in accordance with expense receipts supplied for such accommodations. The Company shall pre pay {or the drivers' room upon the drivers' request.

b) A driver required to use a sleeper berth to layover will i·eceive an allowance of thirty dollars ($30.00)

17 .03 An employee, called in to work from off the premises for a special work assignment, shall be credited at the applicable rate for all hours worked, with a minimum credit of four (4) hours.

17.04 ff you report to work and there is no work available, you will be eligible for a credit of four (4) hoµrs. This provision does not apply where the lack of work is the result of conditions beyond the control of the Company.

ARTICLE 18 - FILLCNG OF POSITIONS

18.0 I A job vacancy in the Transport Driver classification will be filled by the promotion of the employee with the most classification seniority. lfno replacement employee bids upon an available vacancy, the most junior replacement employee shall be assigned to the position.

18.02 Nothing within this article limits the Company's right to assign or transfer employees within the same classification to di-fferent job assignments within· that" classification: · · · · · · · · · · · · · · · · ·

18.03 This article will not apply where the vacancy is caused by illness, accident, vacations, WCB or le.aves of absence including maternity leave. Such vacancies may be filled at the sole discretion of the Company. For an extended absence, the Company will e9nsult with the Union Steward.

ARTICLE 19 - BENEFITS

19.01 A!I eligible employees (excluding employees on probation) shall, subject to the conditions therein, have the benefit of the various salaried Plans currently in force such as the Ontario Health Insurance Plan, Extended Health, Dental, Life Insurance and Disability Income, Non-occupational Accident and Sickness Disability, and Retirement. Effective January l, 2014, pension earned after December 31, 2013 will not be indexed, consistent with the Salaried Pension Plan.

Throughout the life of this agreement, the Company will not change any of the part[cipating benefits provisions applicable to this bargaining unit without prior consent of the Union.

19 .. 02 Five-twelfths of the UIC premium reduction received by the Company as a result of the registration of its sick leave plan has been applied to offset the cost of benefits provided under this agreement, pursuant to the employee's entitlement under the applicable legislation.

19.03 A benefit card will be provided to all eligible employees as part of the benefits package.

19.04 Component Pay PensionabJe Earnings Cap. Applicable to all drivers under Component pay and during_ the Component Pay trial period:

Tra11sporf 13

Credited service: Full year for each calendar year in which the employee works 250 days or more. Note: A day an employee reports for work in addition to any approved vacation and statutory holidays is considered to be a day worked.

2016 2017 2018 2019 2020

$ 62.044.62 $ 64,526.41 $ 65,816.93 S 67,133.27 $ 68,140.27

ARTICLE 20 ~ GENERAL PROVISIONS

20.01 Use of the masculine gender in this agreement shall be considered also to include the feminine, and the plural to include the singular.

20.02 The Company shall furnish approved work wear of its choice to a maximum cost of $250.00 per employee each calendar year.

20.03 Transport Drivers will receive a meal allowance payable as a Flat Rate of$8.00 for each day worked per period, prorated for days missed and payable on the first paycheque of the period. Each period the Traffic Resource will submit driver expense reports modified for days missed (vacation, illness) and submitted for payment in the subsequent period. A copy of the changed expense report to be provided to the Driver concerned.

20.04 A driver convicted of drunk, impaired or dangerous driving while operating a Company vehicle will be discharged regardless of seniority or other considerations. However, a transport driver who loses his license under the law for an incident not involving a Company vehicle, will be removed from the driver classification and either be granted a leave of absence without pay not to exceed one year or allowed to transfer into the plant bargaining unit as general labour with seniority e<JUal to total company service. After his license has been reinstated, he shall be reinstated to the driver classification with the classification seniority he had at the time of his removal.

20.05 The rate for new hires shall be consistent with hourly Shunter rate during the initial training period of no more than twenty (20) working days with a co-driver. As of January 3, 2016, all new hires will be paid Component Pay.

ARTICLE 21 - TERM OF AGREEMENT

21.01 This agreement shall be in effect until midnight of this 2nd day of January, 2021, and from year to year thereafter unless either party gives the other, not less than thirty (30) nor more than ninety (90) days prior to such expiry date, a written notice of its intention to terminate this Agreement or seek amendments to same, in which cases this present Agreement shall remain in force during negotiations for its renewal or amendment.

IN WITNESS WHEREOF the parties have signed this Agreement on the 5th day of July, 2015.

FOR THE COMPANY

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Transport 14

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APPENDIX "A(l)"

ComDonenu 10l6 101'? lOJS ]IJJ9 lll.20

!Ito Vnld s O.ll.S 5 D.ltS $ ~.1~7 s 0.117 $ C. l20

vonoUnld s o.ns s O.l!S $ 0.117 s O.U7 s C.120 com:ost1111 s 20.000 $ 20.00., s 20.ac s ~ .oro s ~0.81 PoC stop s 25.D® $ ~ .000 s 25,50 s 2!;.50 s l6.01 Drop&.Hcolt s a.SOD s S.500 $ g 61 s S.67 s S.&1 1'rt1ri0Slr-,' s lO.OOO 5 lD.GOO s 10,JO s 10.:!o s lGAO ,!A srnete s O.lllO s 0.300 s o.!M s 0.306 s O.ll2 ~,.,, Oollblo $ 0.370 s 0.370 s D.J77 $ 0.317 s o.385

KM Slr.Rle (toi:al Ratel s 0.470 s o.~70 s 0.419 s o.~,, s 6.4S!l KM llcub~ILocal Ral~I I> o.sao s o.sao s O.S9l s O.S9J s (l.~3

B•ckhaul ~,ck Up s 2(1,000 s 20.0DD $ 20.40 s 20.411 $ JO.ti Oel~ s :W.QOO ~ ~O.QOO s 20.:0 $ ;r-1...1~ s 20.a.t

Tra1nln£1Meet1ng WaR•· s 27.QO() s 27.000 s 17.54 s 27.S~ $ 13.Cll

Pre-Trip - Calculated as I prctrip for a single KM nm and :2 pretrips for a LCV KM run

Trtmsporl I 5

APPENDIX "A(2)"

Across the Board Wage Increases effective upon the following dates**:

TRANSPORT DRIVERS

First Year of Agreement (2016): Second Year of Agreement {2.017}: Third Year of Agreement (2018): Fourth Year of Agreement (2019): Fifth Year of Agreement (2020):

Jan 31 2016 Jpn 6, 2017

Weekly Salary* $),170.40 $1,170.40

Regular Hourly Rate $26.60 $26.60

.$2,700.00 lump sum $2,000.00 h1mp sum 2.0% increase to the hourly rate $2,250.00 lump sum 2.0% Increase to the hourly rate

Jan 51 2018 .J~n 4, 2019

$1,193.72 $1,193.72

$27.13 $27.13

Jan 5, 2020

$1,217.48

$27.67

Employees who drive LCV (Long Combination Vehicles) will receive a$ J .00 per hour premium while operating a LCV. The LCV premium is eligible for overtime pay as defined in Article 16.

*Weekly salary is ba.sed on a 44 hollr workweek.

"'* The Parties agree that the "Weekly Salary" and "Regular Hourly Rate" above will have no effect if the outcome of the secret ballot vote In January 2017 is in favor of Component Pay or for any new hires commencing employment January 3, -2016 or later.

Trm,sport ! 6

LETTER OF UNDERSTANDING: GROUP RRSP CONTRIBUTION

The Cambridge Plant employees, after the date ofratitication, will be eligible to participate in the Group RRSP Program offered by the Company. Participation will be voluntary, and employees will be able to contribute set amounts directly into the RSP by payroll deduction. Infonnation on the Program and its requirements will be made available to all employees by the Human Resources Department.

IN WITNESS WHEREOF the parties have signed this Agreement on the S'h day of July, 2015.

FOR THE COMPANY

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Tra11sporl 17

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LEITER OF UNDERSTANDING: MONETARY ADJUSTMENTS

The Company and the Union agree to the following timing for monetary adjustments upon ratification of the Collective Bargaining Agreement:

• Component Pay Rate schedule per Appendix A will be effective January 3, 2016 for a minimum of a one year trial period, see LOU re: Component Pay.

• Lump Sum to be paid on the first pay cycle of applicable year. • The Cambridge Traffic employees will have the option to tax shelter these lump sum payments each

year oflump sum through the Company RRSP Program. Information on this option and its requirements will be made available to all employees by the Human Resources Department.

2016 2017 2018 2019 2020 $2,7(10 $2,000 2% $2,250 2%

IN WITNESS WHEREOF the parties have signed this Agreement on the 51h day of July, 2015.

FOR THE COMPANY

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Transport 18

LETTER OF UNDERSTANDING: SHIFf PREFERENCE

Company seniority will be the governing factor when detennining a Transport Driver's shift schedule.

This Letter of Understanding is in effect during the life of this agreement and must be renewed upon its expiry.

IN WITNESS WHEREOF the parties have signed this Agreement on the 51h day of July, 2015.

FOR THE COMPANY

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Transport 19

LETTER OF UNDERSTANDING: TEMPORARY AGENCY DRIVERS

The Company and the Union agree that the full time drivers will be provided the opportunity to complete their scheduled regular workweek (44 hours) before bringing in Temporary Agency drivers.

The Company and the Union agree that the full-time drivers will be provided the opportunity to work available Monday to Friday work weeks prior to assigning those shifts to Temporary Agency Drivers.

In situations where business changes such as LCV, loss ofvo.lume, or loss of production, etc., require a temporary or pennanent reduction of drivers, the Company will refrain from using temporary agency drivers before laying-off permanent drivers.

The Company commits to regularly re-evaluate and review with the Labour Relations Committee how to minimize the number of temporary agency drivers used and how to ensure Company drivers trips are distributed as fairly as possible to maintain the hours and mix of runs.

The Company will make every attempt to prioritize full time drivers who volunteer for available overtime, within their hours of service regulations, prior to the use of temporary agency drivers.

When a full time driver(s) has been on LTD for two (2) years, the Company and the Union shall meet in a timely fashion to determine if a vacancy shall be created due to the likelihood that employee will not return to work.

IN WITNESS WHEREOF the parties have signed this Agreement on the 51h day of July, 2015.

FOR THE COMPANY

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Transport 20

LETTER OF UNDERSTANDING: VA CATION ALLOCATION

The initial vacation process shall be followed as per the Collective Agreement Article 9.

The re-bid process will take place should a week become available during the months of June, July or August each year.

Any vacated weeks during the above noted months shall first be offered to employees, by seniority, who were unable to select two (2) weeks in the June, July, August timeframe.

Available weeks outside of June, July, August timeframe will not be subject to the re-bid process.

IN WITNESS WHEREOF the parties have signed this Agreement on the 51h day of July, 2015.

FOR THE COMPANY

Transport 21

LETTER OF UNDERSTANDING: UNION ORIENTATION

In order to ensure that new employees in unionized positions are familiar with the role of the union and the collective bargaining agreement, the company shall as part of the onboarding process introduce new employees to the Unit Chair or Chief Steward.

The Unit Chair or Chief Steward shall be allocated five (S) minutes with the employee at a convenient time as part of the onboarding process.

JN WITNESS WHEREOF the parties have signed this Agreement on the s•h day of July, 2015.

FOR THE COMPANY

Tra11sport 22

LEITER OF UNDERSTANDING: CAPITAL INVESTMENT

The Company is committed to continuing to pursue all investment opportunities for the site that will enable the Cambridge facility to become viable and competitive.

IN WITNESS WHEREOF the parties have signed this Agreement on the s•h day of July, 2015.

FOR THE COMPANY

Transport 23

LETTER OF UNDERSTANDING: SHUNTERS

Move Classification to Traffic CBA;

The Company and the Union agree that the following exceptions will apply exclusively to the Shunter classification: • The Shunters' uniform allowance will be as outlined in the Traffic CBA • The Shunters' safety shoe allowance will be as outlined in the Traffic CBA • Shunters will be eligible for insulated coveralls every two calendar years effective 2012, up to a maximum

value of $200 • AH provisions relating to pension, benefits including STD/LTD will continue to reflect the Plant

Agreement.

Shunters will be compensated at the following rates per the Plant CBA:

Jan. 3/16 Jan. 1/17 Jan. 7/18 Jan. 6/19 Jan. 5/20 1.75% 1.75% 1.75% 2.6% 2.9% $24.37 $24.80 $25.23 $25.89 $26.64

Upon implementation of the 2016 shift bid, shift premium will be paid for hours worked in the plant as follows: - All hours worked between 3:00 pm and 11 :00 pm will be paid at a shift premium of $0.SS per hour • All hours worked between 11 :OOpm and 7:00 am will be paid at a shift premium of$0.65 per hour

Shunters will be compensated at the OTR rate when performing OTR transport runs.

In addition, it is understood that Shunters will not be required to drive OTR vehicles unless they choose to do so.

IN WITNESS WHEREOF the parties have signed this Agreement on the S'h day of July, 2015.

FOR THE COMPANY FORTHE~ION

Transport 24

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LETTER OF UNDERSTANDING: COMPONENT PAY

The parties agree that as of January 3, 2016, all bargaining unit drivers will commence on Component Pay for a trial period of one (1) year. Six (6) months following January 3, 2016 there will be a meeting with the Company and Union to review and potentially address any issues. At the conclusion of the one (1) year, the Company and Union agree that Component Pay will be put to a secret ballot vote of only those bargaining unit employees, who were existing bargaining unit employees as of January 2, 2016 (to address the continuance of the program) conducted by the Union.

In the event bargaining unit employees, who were existing bargaining unit employees as of January 2, 2016, fail to accept, with a majority vote, to continue the Component Pay, then the Company and Union agree to meet in a timely fashion, review and potentially adjust the components. Following this review, any potential agreed to component changes or not, will be put to a secret ballot vote, (conducted by the Union) of bargaining unit employees who were existing bargaining unit employees as of January 2, 2016 to decided, by the majority vote, to either revert back to the rates within the Collective Agreement or shall continue with Component Pay.

The Company has the right to adjust the component rates, in favour of the bargaining unit employee(s) at any time.

IN WITNESS WHEREOF the parties have signed this Agreement on the 51h day of July, 2015.

FOR THE COMPANY

Transport 25

LETTER OF UNDERSTANDING: LASR DRIVERS AT PEPSICO FOODS CANADA CAMBRIDGE FACILITY

Up to six (6) LASR drivers of small trucks will base their work out of the Cambridge PepsiCo Foods Canada facility and shall not be members of the bargaining unit.

LASR drivers ofsmall trucks shall not perform any bargaining unit work; cause a reduction in the number of bargaining unit employees; prevent an increase in the number of bargaining unit employees and/or cause a layoff or prevent a recall of bargaining unit employees.

LASR drivers of small trucks shall be limited to delivering the large account sales volume. Meaning delivering only to the types of stores they currently deliver to.

PepsiCo Foods Canada shall be limited to assigning LASR drivers of small trucks to the current type of work and shall not have more than a maximum of six (6) drivers ofsmall trucks working out of the PepsiCo Foods Canada Cambridge facility at any given time.

IN WITNESS WHEREOF the parties have signed this Agreement on the 51h day of July, 2015.

FOR THE COMPANY

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Transport 26

LETTER OF UNDERSTANDING: OTR RUNS

It is the intent of the Company and the Union to create a competitive Component Pay structure that provides our employees the tools to compete and will support our vision of growing our business through a redesigned Cambridge Supply Chain organization.

To this end, the Company and the Union agree, that should at any time a run's efficiency comes into question by the Union, the Company and Union shall meet via the labour relations committee to share all pertinent information with respect to such run and the use of common carriers. The parties shall discuss whether or not such run could be more efficiently performed by bargaining unit employees.

IN WITNESS WHEREOF the parties have signed this Agreement on the 5th day of July, 2015.

FOR THE COMPANY

Tra11sport 21