. OfTlCE OF

e SIGNED COPY

·APR 1 3 1995 COLLECTIVE AGREEMENT COLLECTIVE BARGAINING

INFORMATION

. ~ ................ BETWEEN~

SHERMAN SUPERSONIC INDUSTRIES CORP. {hereinafter called "The Company')

OF THE FIRST PART

-and-

UNrfED STEELWORKERS OF AMERICA (hereinafter called "The Union")

Effective: February 1, 1995 Expiry: January 31, 1996

OPEIU-343

OF THE SECOND PART

ALE No. .3f5- d

CERT. FILE

CERT. DATE

MALE EMPS

F'MLE EMPS

TUTAL EMPS (fJ

EFF. DATE ()I- PEA- (99S

EXP. DATE 31 - ]AN - [39~

IOENT CODED

SUB. PROVS COOED

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ARTICLE

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

INDEX

TITLE

PURPOSE UNION RECOGNITION NO DISCRIMINATION MANAGEMENT RIGHTS UNION SECURITY GRIEVANCE PROCEDURE DISCHARGE AND DISCIPLINARY PROCEDURE SENIORITY BEREAVEMENT PAY JURY DUTY PAY LEAVE OF ABSENCE SAFETY & HEALTH . PAY ON DAY OF INJURY BULLETIN BOARD NO STRIKES OR LOCK-OUTS UNION REPRESENTATIVE COMMITTEEMEN AND STEWARDS HANDICAPPED EMPLOYEES HOURS OF WORK AND OVERTIME REPORTING FOR WORK AND CALL-IN-PAY PAID HOLIDAYS VACATIONS PRODUCTION WORK CREDIT UNION CHECK-OFF COPIES OF AGREEMENT HEALTH AND WELFARE WAGES DURATION OF AGREEMENT PENSION PLAN HUMANITY FUND

WAGE SCHEDULE "A" SCHEDULE "B"

PAGE

1 1 2 2 3 3 6 7 10 10 10 11 12 12 12 12 12 14 14 16 17 17 18 19 19 19 20 20 20 21

22 23

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. " This Agreement made and entered into this __ day of _________ , 19_

between:

and:

ARTICLE 1 - PURPOSE

SHERMAN SUPERSONIC INDUSTRIES CORP.

hereinafter called "The Company" of the first part

UNITED STEELWORKERS OF AMERICA

hereinafter called "The Union" of the second part

1.01 The parties agree that it is mutually beneficial and desirable to arrange and maintain fair and equitable earnings, labour standards, wage rates and working conditions to obtain efficient operations to protect the safety and health of employees and to provide machinery for the adjustment of the disputes which may arise between the parties hereto.

ARTICLE 2 - UNION RECOGNITION

2.01 The Company recognizes the Union as the sole and exclusive bargaining agent for all of its employees of Sherman Supersonic Industries Corp. in Metropolitan Toronto and for those located in Mississauga, save and except foremen, persons above the rank of foremen, office and sales staff and students hired during the summer period. The Company further agrees, that should any of the Company's operations that are in existence on the date this agreement is signed and which are covered by this collective agreement, be moved from Toronto and Mississauga to a location anywhere in Ontario, the employees affected wilJ have the opportunity to move to such location, and the Company agrees to extend recognition to the Union as a bargaining agent for employees at such location.

2.02 The terms and conditions set forth in this agreement shall have full force and effect for all employees in the. bargaining unit as described in the preceding paragraph, except probationary employees.

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ARTICLE 3 - NO DISCRIMINATION

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

ARTICLE 4 - MANAGEMENT RIGHTS

4.01

(a)

(b)

(c)

(d)

4.02

The Union recognizes that it is the function of management to manage the affairs of the business and to direct the working forces of the Company.

to determine the products and schedules of production, the locations of production and the methods of sequence of manufacturing processes;

to maintain discipline of employees, including the right to make reasonable rules and regulations, provided, however, any disputes involving claims of discrimination against any employee in the application of such rules and regulations shall be subject to the grievance procedure of this agreement;

to discharge, suspend or discipline employees for just and reasonable cause, and also to hire, transfer, promote, demote and to assign employees to shifts, with due regard to the employee's ability to perform the work available and then to seniority;

the Company agrees that these rights shall be exercised subject to the terms of this agreement.

Nothing in this agreement shall be interpreted as limiting the Company in any way in the exercise of all of the rights, powers, authority and regular and customary functions of management to introduce technical improvements and methods of operation and changes in the methods of operation, the extension, limitation, curtailment or cessation of operations, and the right to engage, lay off, demote, transfer, employees with due regard to ability first and then seniority and to reprimand, suspend, or discharge employees for just cause. However, these rights shall not be exercised in any manner that violates the intent of the provisions of this agreement.

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ARTICLE 5 - UNION SECURITY

5.01 Effective within thirty (30) days after signing of this collective agreement, each employee shall be and remain a member of the Union in good standing, as a condition of employment.

5.02 The Company shall deduct, as a condition of employment, from the wages of each employee in the bargaining unit, union dues and assessments in the amount certified by the Union to the Company to be currently in effect according to the Union constitution. Such deductions shall be made weekly, and shall be remitted within fifteen (15) days and made payable to the International Treasurer of the United Steelworkers of America and forwarded directly to 1291 Matheson Blvd. East, Mississauga, Ontario L4W 1Rl. The monthly dues remittances shall be accompanied by a complete list of names of employees and the amount of dues deductions for the employees.

5.03

5.04

The Union agrees to indemnify and save the Company harmless against all claims or other forms of liability that may arise out of, or by reason of, deductions made or payments made in accordance with this Article.

No deduction shall be made from the pay of any employee in any month where the employee has worked only five days or less. (Paid days on vacation and paid statutory holidays will be considered as days worked.)

ARTICLE 6- GRIEVANCE PROCEDURE

6.01 Step 1

Should a grievance arise, concerning the interpretation, application, administration, or alleged violation of the agreement, the employee in question shall present the grievance in writing, on an authorized form and signed by him, to the foreman within five (5) working days after the occurrence of the event upon which the grievance is based. The employee may have the assistance of his steward if he so desires. The foreman shall reply to the grievance in writing within two (2) working days from the date that he received the grievance.

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ARTICLE 6 · GRIEVANCE PROCEDURE (CONT'D)

6.02 Step 2

If the reply of the foreman to the grievance is not satisfactory to the employee or the Union then he may submit the grievance to the Plant Superintendent within two (2) working days from the date that he received the reply of the foreman. The employee may have the assistance ·of his steward if he so desires. The Plant Superintendent shall reply to the grievance in writing within two (2) working days from the date that he received the grievance.

6.03 Step 3

If the reply of the Plant Superintendent is not satisfactory to the employee, then the Grievance Committee, together with the International Union Representative may, within two (2) working days from the date that the reply of the Plant Superintendent was received, request a meeting with the senior management, such meeting to be held within three (3) working days of receipt of such request. The management shall reply to the grievance in writing within seven (7) working days from the date that the meeting was held.

6.04 If the reply of the Management is not satisfactory then the grievance may, within ten (10) working days from the date of the reply of the Management be referred to arbitration.

6.05 The Company or the Union may file a policy grievance concerning the interpretation, application or alleged violation of the agreement. Such grievance shall be deposited in writing with the management if the grievance is by the Union or with the International Union Representative if the grievance is by the Company. The Plant Superintendent or the International Union Representative, as the case may be, shall reply to the grievance in writing within seven (7) working days from the date that the grievance was deposited. If the reply is not satisfactory to the Grievor, the grievance may be referred within ten (10) working days from the date of the reply to arbitration in accordance with Articles 6.06 to 6.10 hereof.

6.06 ARBITRATION

Where a difference arises between the parties relating to the interpretation, application or administration of this agreement, including any question as to whether a matter is arbitrable, or where an allegation is made that this agreement has been violated, either of the parties may, after exhausting the grievance procedure established by this agreement, notify the other party in writing of its desire to submit the difference or allegation to arbitration.

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ARTICLE 6 - GRIEVANCE PROCEDURE (CONTI))

6.07

1.

2.

3.

4.

5.

6.

6.08

6.09

6.10

6.11

6.12

Any matter referred to arbitration as provided in 6.01 hereof, shall be submitted to a single arbitrator selected from the following list:

Prof. S.N. Lederman, c/w Stikeman, Elliott, Robarts and Bowman, P.O. Box 85, Commerce Ct. W., Toronto

0. B. Shime, Barrister, Suite 2009, Box 42, 401 Bay St., Toronto

J.F. W. Weatherill, Barrister, Suite 701, 36 King St. E., Toronto

Prof. R.J. Roberts, c/o Faulty of Law, University of Western Ontario, London.

Prof. M.R. Gorsky, c/o Faculty of Law, University of Western Ontario, London.

Prof. G. Brent, 840 Colborne St., London.

The arbitrator shall hear and determine the difference or allegation and shall issue a decision and the decision is final and binding upon the parties and upon any employee affected by final and binding upon the parties and upon any employee affected by it.

The arbitrators shall rotate on each subsequent arbitration, but should any one be unable to act within thirty (30) calendar days, he shall be passed over to the next on the list.

The arbitrator shall have the right to enter any premises where work is being done or has been done by the employees or in wherever the employer carries on business or where anything is taking place or has taken place concerning any of the differences submitted to him and inspect and view any work material, machinery, appliance or article therein and interrogate any persons respecting an:y such thing or any of such differences.

If, during the life of this agreement, one of the arbitrators named in 6.07 hereof withdraws from the Jist, the parties shall appoint a replacement by mutual agreement in writing.

The Union and the Company shall each pay one-half of the remuneration and expenses of the arbitrator.

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ARTICLE 6- ARBITRATION (CONT'D)

6.13 Notwithstanding any sanction attaching to any violation of the time limits for processing a grievance from step to step up to and including arbitration, the arbitrator shall have the right to set aside such sanctions and deal with any grievance on its merits, provided that the delay in time complained of by the protesting party is not unreasonable and provided further that such delay has not prejudiced the party making the protest.

6.14 It is understood and agreed that in cases where the arbitrator finds that the Company has violated any of the provisions of the agreement, and that such violation has resulted in a loss of wages or other remuneration, the arbitrator shall have the authority to order the Company to pay such lost wages or other remuneration, to the employee or employees either in full or in part as to the arbitrator may seem just in the circumstances. Should the arbitrator decide that any discharge or suspension is unjustified or too severe, he shall have the power to rescind or reduce the penalty and reinstate the employee without loss of seniority, with or without back pay, or by any other arrangement, which in the opinion of the arbitrator is just and equable.

ARTICLE 7 - DISCHARGE AND DISCIPLINARY PROCEDURE

7.01 The Union acknowledges that probationary employees may be dismissed or disciplined by the Company for any reason.

7.02 A claim by an employee that he has been unjustly discharged should be treated as a grievance provided that the aggrieved employee has attained seniority in accordance with Article 8 of this Agreement prior to his discharge and provided that the aggrieved employee presents a written statement of such grievance to the General Manager, or his designated representative within ten (10) working days following notification of discharge by the Company to the employee. The Company will notify the Union of any such discharges or suspensions.

7.03 Upon presentation of the grievance to him the General Manager or his designated representative, shall immediately arrange a meeting between the Union grievance committee and the Company representative and such meeting shall be held within three (3) working days following presentation of the grievance to the General Manager, or his designated representative, the General Manager, or his designated representative, shall deliver his report to the grievance in writing to the Union within two (2) working days following such meeting or within such time as is mutually agreed upon by the Company and the Union.

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7.04 Any unsettled discharge grievance may proceed by way of arbitration in accordance with Article 6 of this Agreement and, in such event, the Arbitration Board may uphold the Company's action in discharging the employee or may order reinstatement of the discharged employee with or without full or partial compensation for time lost, or may issue such other decision within these limits which, in the opinion of the Arbitration Board, is just and equitable in the circumstances.

ARTICLE 8 - SENIORITY

8.01 The fol1owing rules governing seniority are designed to give employees an equitable measure of job security based upon the length of service with the Company and their ability to perform the work available.

8.02 An employee will be considered on probation and will not have any seniority standing with the Company or be placed on a seniority list until after he has completed ninety (90) calendar days. His seniority will then date back to the date he commenced to work for the Company.

8.03 Seniority lists, based upon seniority with the Company, will be prepared and posted on the bulletin board. These lists will be revised semi-annually. A copy of each list will be supplied to the Union.

8.04 In cases of promotion, demotion, transfers, or upgrading of employees to jobs within the bargaining unit, skill, ability, and experience shall be the governing factors and where these factors are relatively equal between employees, seniority shall govern.

JOB POSTING

All vacancies for posttions of more than one month's duration or newly created positions shall be posted for three working days on the special bulletin board supplied for union purposes. An employee desiring the position must make application to management within three (3) working days. The senior employee applying for the position shall be given the appointment, provided that he is qualified to fill the position.

8.05 In the event it becomes necessary to reduce the working force within a department because of lack of work, probationary employees shall be the first to be laid off, and thereafter preference will be given to the employee with the greatest seniority provided his qualifications and ability to work are relatively equal to those with less seniority, and provided he can prove same to the Company within three (3) days.

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ARTICLE 8- SENIORITY (CONT'D)

8.06

8.07

8.08

8.09

8.10

8.11

(a)

(b)

(c)

(d)

(e)

Employees who have been laid off because of lack of work and who still retain seniority with the Company will be recalled to work, when work becomes available, in the inverse order they were laid off, provided such employees are capable and willing to perform the work available.

Notification of recall shall be by telephone call and registered letter directed to the last address and telephone number which the employee recorded with the Company.

An employee who is being recalled to work must signify his intention to return to work within one (1) working day after notice of recall and must return within a further five (5) working days or make some other arrangements which are satisfactory to the Company.

Seniority previously accumulated shaH be lost whenever and employee:

quits voluntarily or is discharged;

overstays any leave of absence without receiving permission from the Company;

is absent from work without any explanation satisfactory to the Company, for three (3) consecutive days;

fails to return to work within five (5) working days after a notice of recall, or to make some other arrangement satisfactory to the Company;

is absent because of lack of work for a period equal to the seniority he had at the time of layoff, but in no event to exceed twelve months.

Seniority accumulated during absence will only be credited to an employee upon his return to work.

Employees accepting a transfer out of the bargaining unit may retain their bargaining unit seniority for three (3) calendar months. If after three (3) calendar months said employee remains in non-bargaining unit position then all bargaining unit seniority shall be lost.

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ARTICLE 8- SENIORITY (CONT'D)

8.12

(a)

(b)

8.13

TEMPORARY TRANSFERS

If an employee is transferred for the convenience of the Company, he shall receive the job rate for the job classification or his regular job classification rate, whichever is greater.

If the transfer is for the convenience of the employee or to enable the employee to avoid layoff, and if the rate of the job classification to which he is transferred is less than the employee's regular classification rate of pay, he shall receive the lesser classification rate of pay.

LAYOFF NOTICES

In the event of layoff due to lack of work the Company will give forty-eight ( 48) hours notice or pay in lieu of notice. In the event of seasonal layoff the Company will give five (5) days notice or pay in lieu of notice. This provision will not apply in the cases of strikes, work stoppage, fire, failure of utilities or acts of God.

8.14 PREFERENTIAL SENIORITY

In the event of partial layoff, the Union plant chairman and a maximum of one (1) Shop Steward shall be granted sufficient plant wide seniority to remain in the plant, provided they are able to perform the available work.

8.15 PLANT CLOSING

In the event of a permanent plant closing, the Company will provide each affected employee with a reference, a job history and resume, and such benefits made available under the provisions of the Employment Standards Act. The Company will pay one week's severance pay for each completed year of unbroken service (and 1/12th of a week's pay for each completed month in an incomplete year) to employees who are permanently laid off or terminated due to a permanent, partial or total closure of the Employer's plant. Severance pay will be based on the employee's regular straight time rate. A maximum of 26 weeks severance pay will be paid. To be eligible for severance pay, the employee must have completed five (5) years service. The employee shall receive the greater of Severance Pay under this clause or the Employment Standards Act, but not both. This clause does not apply if an employee is offered work elsewhere by the Company.

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ARTICLE 9- BEREAVEMENT PAY

9.01 In the event of a death in the immediate family of an employee (that is, father, mother, father-in-law, mother-in-law, spouse, child, brother, sister, grandparents, brother-in-law, or sister-in-law) the employee shall be granted up to four ( 4) working days without loss of pay to prepare for the funeral.

9.02 Emergency Leave

Employees who request an emergency leave to attend to urgent family matters shall be granted a ten (10) day unpaid leave.

ARTICLE 10- JURY DUTY PAY

10.01 An employee who is called for Jury Duty shall be compensated by the Company for the difference between payment received for such Jury Duty and the payment he would have received for the straight time hours he was thereby required to lose from his regularly scheduled hours of work. The differential payment made in accordance with this Article shall only be made upon presentation of documentary proof of call to Jury Duty, performance of Jury Duty and the payment received thereof.

ARTICLE 11 - LEAVE OF ABSENCE

11.01 Personal Reasons

11.02

(1)

(2)

An employee will be allowed a thirty (30) calendar day leave of absence without pay for personal reasons if:

He requests it from the management in writing with ten (10) days' notice, and

The leave is for a good reason and does not interfere with operations. However, in case of emergency leave shall not be unreasonably withheld.

A leave of absence without pay and benefits may be extended for an additional thirty (30) calendar day period if management agree. The employee must request the extension in writing before his thirty (30) day leave is up.

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ARTICLE 11- LEAVE OF ABSENCE (CONT'D)

11.03 Leave of Absence to attend Union Conventions

An employee who has been elected or appointed by the Union to attend Union conventions or conferences or to attend to other official Union business shall be granted a leave of absence for this purpose. It is agreed that the Company may limit such leaves to one person at any one time. It is further agreed that the Union will reimburse the Company for any wages paid with respect to this clause. And that such payment will be made within (30) thirty days of the relevant leave of absence.

11.04 Failure to Return from Leave

Any leave of absence will be in writing and no such leave wil1 affect any employee's seniority rights when used for the purpose granted, provided he returns to work at the expiration of his leave.

11.05 Canadian Citizenship

The Company agrees to provide leave of absence to employees who wish to apply for the Canadian Citizenship Test. It is further agreed that reimbursement of wages to the extent of four ( 4) hours shall be paid to employees who complete the Canadian Citizenship Test and have received the certificate.

ARTICLE 12 - SAFETY AND HEALTII

12.01 The Company and the Union agree that they mutually desire to maintain high standards of safety and health in the plant in order to prevent industrial injury and illness. The Company agrees to comply with the Health and Safety Act of Ontario and hold monthly safety meetings.

12.02 The Company shall furnish to the employees, who have completed their probationary period, one (1) pair of prescription safety lenses up to a maximum of ninety ($90.00) dollars per person/per year. Gloves, welding aprons, safety glasses, goggles and one pair of safety shoes per year, up to a maximum of ninety doUars ($90.00) and two pairs to Installers and servicemen, if needed to protect employees from injury. All such items to remain the property of the Company except safety shoes. The Union will assist the management in carrying out a reasonable accident prevention program. The Company will provide two (2) pairs of coveralls per week for Union members (employee to be responsible for loss or theft thereof).

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ARTICLE 13- PAY ON DAY OF INJURY

13.01 An employee hurt in an Industrial accident shall be provided by the Company with transportation for medical treatment and paid for the time lost on the day he was injured at his regular daily earnings including any overtime premium and applicable shift differential, if applicable.

13.02 It is not the intent of the above provision to make the Company responsible for the payment of such time and transportation which is compensated by the Worker's Compensation Board.

ARTICLE 14 - BULLETIN BOARD

14.01 The Company shall provide one bulletin board in a conspicuous location in the plant for the posting of notices of meetings of the Union and other material of interest o the Union members. All such notices must be submitted to the Plant Manager or his designate for his approval before being posted.

ARTICLE 15 - NO STRIKES OR LOCK-OUTS

15.01 The Company agrees that during the life of this agreement, there will be no lock-out, and the Union agrees that it will not call, counsel or in any way encourage any strike, slow-down or other interference with work or production which will in any way affect the operations of the Company.

ARTICLE 16 - UNION REPRESENTATIVE

16.01 If an authorized union representative, who is not employed by the Company, wants to speak to a local union representative, he must first seek permission from an official of the Company.

ARTICLE 17- OOMMITIEEMEN AND STEWARDS

17.01 Grievance committeemen and shop stewards will be designated in writing by the Union to the Management. There shall be one steward for each shift. For the purpose of meeting with management representatives, the grievance committee will consist of two persons designated by the Union plus the International Union Representative.

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ARTICLE 17 - OOMMl'I*I'BEMEN AND STEWARDS (OONT'D)

17.02

17.03

17.04

Members of the grievance committee will not lose pay for the time spent during regularly scheduled working hours attending scheduled meetings with management representative, except that, should the Committee be absent from the plant premises because of negotiation, conciliation or arbitration proceedings then the Company shall not be liable for the time.

When the legitimate business of a grievance committeeman or steward requires him to leave his job or department, he shall first receive permission from his foreman or department supervisor, and he shall not suffer loss of pay for reasonable time spent in the performance of these duties during his regular working hours.

It is understood and agreed that the Union Committee, as well as other employees have regular duties to perform in connection with their employment, and must seek permission from their respective foremen before attending any meetings with Company representatives or acting on any grievance during working hours. If it is necessary for a member of the Union Committee to investigate a grievance in a department other than the one in which he is employed, he will obtain permission from the foreman of that department before investigating such grievance.

The Union agrees that no person shall be appointed or otherwise selected as Steward unless he has accumulated 6 months seniority prior to the appointment or selection.

17.05 Meetings for the negotiation of the renewal of this agreement shall be conducted during working hours and the Company agrees to pay not more than two (2) members of the Negotiating Committee their regular straight time hourly rate for time spent in such negotiations.

17.06 Union Representatives

The Company and the Union agree that a staff representative or designate of the Union shall be permitted to attend with the Union Grievance Committee, any meetings with the Company. A staff representative of the Union shall also be permitted to meet with the officers of the Local Union with respect to Union business during working hours, provided the Company is notified in advance and production is not unreasonably delayed.

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ARTICLE 18 - HANDICAPPED EMPLOYEES

18.01 In the event of employees sustaining injuries at work, or becoming affected by occupational diseases during the course of their employment and becoming physically handicapped as a result thereof, every effort will be made by the Company to give the handicapped employee such suitable employment as is available.

ARTICLE 19 - HOURS OF WORK AND OVERTIME

19.01 Definition of Day and Work Day

A day is a twenty-four (24) hour period beginning with the start of the employee's shift. The basic work day is eight consecutive hours of work in the twenty-four (24) hour period, broken only by the established lunch period.

19.02 The standard work week for all employees unless otherwise specified in this agreement shall be ( 40) forty hours per week comprised of the following schedule: Monday - 7:45 a.m. to 12:00 noon, 12:30 p.m. to 6:05 p.m. Tuesday thru Thursday - 7:45 a.m. to 12:00 noon, 12:30 p.m. to 4:15 p.m. Friday - 7:45 a.m. to 1:45 p.m.

19.03 Double Shift Operations

The standard working day will be eight (8) hours - 7:00 a.m. to 11:00 a.m., 11:30 a.m. to 3:30 p.m. and from 4:00 p.m. to 8:00 p.m., 8:30 p.m. to 12:30 a.m. for the respective shifts. The standard working week will be five (5) standard working days Monday through Friday.

19.04 Shift Premium

The Shift Premium will be twenty-five ($0.25) cents for afternoon shift.

19.05 Shift schedules shall be made and posted in the department not later than Thursday of the preceding week. Shift changes shall not be made to avoid payment of overtime. When an employee works one of his scheduled days off he shall not be required to take another day off during his regular work week. Overtime rates, as set forth herein, shall be paid for work performed on an employee's scheduled day off.

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ARTICLE 19 - HOURS OF WORK AND OVERTIME (CONT'D)

19.06 Relief Periods

A relief period of ten (10) minutes away from work shall be provided during the second or third hours of each half shift.

The Company shall grant a five (5) minute clean-up period to all employees prior to the end of each day.

19.07 Meal A1lowance

Employees requested to work ten (10) consecutive hours shall be given ten (10) minutes on Company time to eat their lunch. The Company wiiJ pay a five ($5.00) dollar meal allowance to an employee working more than two (2) hours after his regular shift.

A11 overtime shall be on a voluntary basis or on twenty-four (24) hour notice.

19.08 Definition of Regular Straight-Time Hourly Rate

The regular straight-time hourly rate means an employee's straight hourly base rate and applicable premiums, if any.

19.09 The Company shall give notice of overtime as far in advance as is practical. Opportunities for overtime work shall be equitably distributed among those normally performing the work.

19.10 Time worked on Saturday shall be paid at the rate of time and one half (1-1/2) and time worked on Sunday shall be paid at the rate of double time the employee's rate of pay.

19.11 Hours Worked in Excess of Eight

The Company shall pay an employee one and one-half (1-1/2) times his regular straight-time hourly rate for all hours he is required to work over eight (8) a day.

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ARTICLE 19 - HOURS OF WORK AND OVERTIME (CONT'D)

19.12 Exceptions to Daily Overtime

When an employee is permitted by management to change from one shift to another at his own request, and a new shift starts within the same twenty-four (24) hour period as his preceding shift, overtime provided under sub-section 19.09 and 19.11 will not be paid. However, the starting time of the new shift will start a new twenty-four (24) hour period for the purpose of determining overtime.

ARTICLE 20- REPORTING FOR WORK AND CALL-IN PAY

20.01

20.02

(a)

(b)

(a)

(b)

An employee who reports for work at the start of his regular shift without having been told in advance not to report will be given work or pay at his regular rate for a period of four hours. This obligation on the part of the Company will not· prevail when an employee is prevented from working because of:

a power shortage, power failure, or any circumstances beyond the control of the Company.

failure on the part of an employee to keep the Company advised of his current address.

Employees who are called back to work outside their regular hours in order to meet emergency conditions will receive whichever is the greater of the following:

three hours' pay at straight time rates;

time and one-half (1-1/2) for all worked hours.

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ARTICLE 21 - PAID HOLIDAYS

21.01 Following are the paid holidays:

(a)

(b)

21.02

21.03

New Year's Day Good Friday Easter Monday (floater) Victoria Day Dominion Day

Civic Holiday Labour Day Thanksgiving December 24th December 25th December 26th December 31st

If such holiday falls on what would otherwise be a regular working day; or where any of the said paid holidays falls on a Saturday or Sunday and the day celebrated as a paid holiday in lieu thereof falls on what would otherwise be a regular working day, all employees who have served their probationary period shall receive payment for such holidays based on their regular current hourly rate multiplied by the number of hours they would normally have worked on such day subject to the following conditions:

To be eligible for holiday pay, a man must work the full work day immediately preceding and the full work day immediately following such holiday.

If a holiday falls in a vacation period, he shall be allowed one additional day's vacation with pay.

If an employee works on one of the above named paid holidays, he will be paid at the rate of time and one half, for hours actually worked by him, in addition to his holiday pay, as defined in Article 22.01.

The Company will provide two and one half man days/year for employee educational courses and/or seminars.

ARTICLE 22 - VACATIONS

22.01 Each employee shall be entitled to an annual vacation with pay in accordance with the employee's length of service as provided in the collective agreement.

22.02 An employee who has less than one year of service as of June 30th in each year shall be entitled to vacation with pay in accordance with the Employment Standards Act for the Province of Ontario.

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ARTICLE 22 - VACATIONS (CONT'D)

22.03 An employee who at June 30th in each year has completed one (1) year or more of service, but less than five (5) years, shall be entitled to two (2) weeks of vacation with pay. Vacation pay shall be four ( 4) per cent of the employee's gross earnings for the previous year ending June 30th including Weekly Indemnity and Workman's Compensation.

22.04 The Company shall schedule vacations between June 1st and September 1st, for all employees up to two weeks. However, the third and fourth week's vacation will be decided by mutual agreement, between the employee and the Company.

22.05 An employee who at June 30th in each year has completed five (5) years or more of service, but less than ten (10) years, shall be entitled to three (3) weeks of vacation with pay. Vacation pay shall be six (6) percent of the employee's gross earnings for the previous year ending June 30th including Weekly Indemnity and Workman's Compensation.

22.06 An employee who at June 30th in each year has completed ten (10) years or more of service, shall be entitled to four ( 4) weeks of vacation with pay. Vacation pay shall be eight (8) percent of the employee's gross earnings for the previous year ending June 30th including Weekly Indemnity and Workmen's Compensation.

22.07 An employee who at June 30th of each year has completed fifteen (15) years or more of service, shall be entitled to four ( 4) weeks of vacation with pay. Vacation pay shall be nine (9) percent of the employee's gross earnings for the previous year ending June 30th including Weekly Indemnity and Workmen's Compensation.

22.08 An employee who at June 30th of each year has completed twenty (20) years or more of service, shall be entitled to five (5) weeks of Vacation with pay. Vacation pay shall be ten (10) percent of the employee's gross earnings for the previous year ending June 30th including Weekly Indemnity and Workman's Compensation.

ARTICLE 23 - PRODUCTION WORK

23.01 Except under emergency conditions or for purposes of training, instructing or experimenting, or where no employees with the required skills are available, supervisory employees shall not work on any job normally performed by an employee in the bargaining unit.

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ARTICLE 24 - CREDIT UNION CHECK-OFF

24.01 The Company agrees to deduct from the earnings of each employee, who submits a voluntary check-off authorization, such amount as the employee has authorized to be transmitted on his behalf to the Credit Union. The monies so deducted shall be transmitted to the Credit Union together with the list showing the names of the employees for whom the deductions were made and the amount to be credited to the account of each employee. Such check-off authorization shaH remain in effect until it is revoked or changed by the employee. Maximum yearly adjustments shaH be limited to three (3) month intervals.

ARTICLE 25 - COPIES OF AGREEMENT

25.01 The Company and the Union desire every employee to be familiar with the provisions of this agreement and for this purpose, the Company agrees to furnish a printed copy of the agreement for each employee.

ARTICLE 26 - HEALTH AND WElFARE

26.01 During the life of the agreement the Company agrees to provide the following coverage for all employees who have completed the probationary period:

(i)

(ii)

(iii)

(iv)

(v)

(v)(a)

Ontario Health Insurance Plan (OHIP)

$20,000 Life Insurance and $20,000 Accidental, Death or Dismemberment.

Weekly Indemnity at 66.6% the employee's normal weekly earnings on a 1/4/52 basis up to the U.I.C. maximum amount payable. In addition up to 3 paid sick days per year for employees with 5 years or more of service. The Company agrees to convert any unused sick days into a lump sum and deposit into individual R.S.P. accounts no later than December 31st of the current year.

Drug Plan $10.00 single, $20.00 family deductible.

Blue Cross Dental Plan #9 (with root canal).

The Ontario Dental Association fee schedule shall lag no more than one year behind the current year.

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(vi) Semi-private hospitalization.

26.02 The Company agrees to pay one hundred ( 100%) percent of the cost of the coverage provided for in 26.01 of this article.

ARTICLE 27 -WAGES

27.01 During the lifetime of this agreement, the Company agrees to pay and the Union agrees to accept the scale of wages set forth in Schedules "A", which are hereby made part of this agreement.

27.02 The Company agrees that the progression from the starting rate to the final rate shall take place within twenty-four months from the employees date of hire. Employee evaluations shall take place twice yearly.

27.03 The Company agrees to communicate to the employees and to post on the bulletin board the necessary qualifications to progress from the starting rate to the final rate.

ARTICLE 28 - DURATION OF AGREEMENT

28.01 This agreement shall become effective as of the 1st day of February, 1995, and shall remain in effect up to and including the 31st day of January, 1996, and shall automatically renew itself from year to year thereafter unless written notice of the desire to terminate the agreement or to amend any portion of any of the terms hereof is given by either party to the other within ninety (90) days prior to the expiration of this agreement.

ARTICLE 29 - PENSION PlAN

See attached Schedule 11B11•

The Company agrees to pay and the Union agrees to accept for the term of this Agreement, the Pension Plan (Group R.R.S.P. Plan) as set out in the Schedule "B" attached hereto and forming a part of this Agreement.

The Company shall contribute 2% of earnings (regular wages) each year of the collective agreement.

The employee shall contribute 2% of earnings (regular wages) for each year of the collective agreement.

·. '· ~...... . . - 21 -

ARTICLE 30 - HUMANITY FUND

30.01 The Company agrees to submit in January of each year the amount of $20.00 per year multiplied by the number of employees in the bargaining unit and remit all the monies collected by cheque to the:

The Humanity Fund 234 Eglinton Avenue East 7th Floor Toronto, Ontario M4P 1K7

It is understood and agreed that the employees in the bargaining unit may participate in the above mentioned program and those employees that do participate will be issued a tax receipt for income tax purposes.

Signed by the parties hereto on the /3 r_Hday of 6BeuA:Rj 111£ in the City of Mississauga:

FOR THE COMPANY:

-/--~--~

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APPENDIX "A"

WAGE SCHEDULE"~'

Classification

General Labourer/ Shipper Receiver

Machine Operator

Welder

Equipment Assembler Installer/Serviceman

Electrical Assembler Welder/Fitter

Machinist*

1st 6 Months

$9.25

10.51

12.61

13.27

13.80

14.61

2nd 6 months Final Rate

$9.78 $10.35

10.98 12.00

13.36 14.53

14.55 15.37

14.89 15.72

15.79 17.05 Final Rate $17.30

All of the above classifications shall be reviewed after each 6 months of employment by the Company. If successful, then they shall advance to the next pay rate of the classification they are in. If they are not successful, the Company agrees that they will be instructed as to what the necessary qualifications are to advance in.

*The Machinist classification shall have a further 6 month period before having the opportunity to qualify for the final rate.

The add-on premium for charge hands $1.50.

The add-on premium for lead hands $1.00.

All current employees as of January 2, 1995 that may be receiving above the classification rates or above the add·on premiums shall retain these rates of pay.

•

October 18, 1988

Mrs. C. Martin Vice-President Sherman Supersonic Canada Corp. 3133 Orlando Drive Mississauga, Ontario L4V 1C5

Dear Carolyn:

RE: R.R.S.P.

. 23.

SCHEDULE ''B" PRIVATE & CONFIDENTIAL

Further to our recent meeting, I am enclosing an employer application and a supply of individual enrollment cards.

The plan will apply to all union employees with 5 or more years service and they will be entitled to the full withdrawal value (including the employer share) if they terminate employment or retire.

The contract offers a fully guaranteed interest earnings based on a very competitive rate (rate for October deposits 10.9% ).

I have also enclosed a brief description of the plan on our company. You may wish to use it if you are advising the employees about the plan.

To start the plan, please return the following items:

1. A signed employer application. 2. A completed blue R.S.P. application card from each employee. 3. A self-billing form with the remittance when it is ready.

You may wish to photocopy the contribution list before you put the data on it. You can then use it in future months as well.

Please give me a call if there are any questions about the material.

Thanks.

Yours very truly,

NORWICH UNION LIFE INSURANCE SOCIETY Gary Duff

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EMPLOYER APPLICATION GROUP RRS.P. PlAN

Company Name Sherman Supersonic Industries Corp. (Union Plan)

Nature of Business ""'"M=a=n=u=fa=c=tu=r"""in"""gr----------------------

Address 3133 Orlando Drive

Mississauga. Ontario L4V 1C5

Administrator Mrs. C. Martin

Telephone No.: ( 416) 678-1700

PLANSPE~CATIONS

Effective Date November 5. 1989

Eligibility 60 (Sixty) months

Employee Contributions: 2% of earnings (regular wage)

Employer Contributions: 2% of earnings (regular wage)

On termination of employment, employees can elect a cash withdrawal or transfer to their own R.R.S.P. The amount available for withdrawal or transfer shall include employee contributions, employer contributions and earnings (the withdrawal value).

Application is hereby made to the NORWICH UNION LIFE for a GROUP R.R.S.P. PLAN in accordance with the above specifications and the normal policy provisions. The acceptance of the policy in consideration of this application will constitute an agreement.

Witness Signature

Dated Title

••

JFLIEXJI '"' GJROUJP

Investment R.R.S.P.

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SCHEDULE "B"

A group R.R.S.P. is a retirement plan sponsored by your employer which offers an the benefits of a personal R.R.S.P. and, in addition, many other very attractive features:

How Does It Work?

Employees select the amount they wish to contribute (subject to the R.R.S.P. maximums).

Employees can authorize an immediate tax deduction if their contributions are deducted from earnings.

Funds may be cashed out, transferred or left in the fund if you leave the Company (subject to any government regulations).

The Investment

Monthly contributions are accumulated with interest to the end of each policy year. The accumulated contributions then receive interest at a guaranteed rate for a five year period. The contributions in each following year are treated in the same manner.

The interest rate used for monthly contributions is always an excellent rate based on the Norwich Union's five year guaranteed rate.

All ,contributions and interest earnings are fully guaranteed.

Benefits

If you terminate employment, you can leave your funds in the plan, transfer to another plan or take cash (subject to tax).

Funds left to maturity always receive the full amount of contributions and guaranteed interest. If you terminate employment, you can elect to cash out before the funds mature but they may be reduced by an adjustment factor.

.. ·,~ I If• . ·•

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On retirement, your fund may be used to purchase a retirement income from the Norwich Union at low group rates. Alternately, you may take cash or transfer your funds.

On death, your beneficiary will receive the full amount of your contributions with interest.

This brochure is a brief outline of the Group R.R.S.P. Plan. For the full details or updated information, please refer to the Group Policy with your employer or contact Norwich Union Life.

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Norwich Union Life Insurance Society was founded in Norwich, England in 1808 and is one of the oldest life insurance organizations in existence. It was organized and still operates on a mutual basis, without stockholders and with profits being returned to the participating policyholders in the form of dividends or paid-up additions. Over the years, the investment record has been excellent.

Norwich Union has world-wide assets in excess of 29 billion dollars and business undertaken by Norwich Union of Canada is backed by the entire organization. Norwich Union offers a complete range of life insurance and pension plans to both individuals and groups.

As a long established, stable organization, it is ideally suited to guarantee something as important to you as your retirement program ..