MEMORANDUM. CRANE TRUCK ADDENDUM (amending the Crane Rental Agreement) INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 115

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1 MEMORANDUM CRANE TRUCK ADDENDUM (amending the Crane Rental Agreement) BY AND BETWEEN: F & G DELIVERY LTD. AND: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL Except as specifically expressed in this Addendum, all other terms and conditions of the Crane Rental Agreement shall apply. 2. Scope of Bargaining Unit: The Company recognizes the Union as the sole and exclusive bargaining agent for dependent contractors, operators of dependent contractors and company operators of all Knuckle Boom and Stiff Boom Crane Trucks. All dependent contractors working for shall be deemed employees of All persons working on equipment owned by such dependent contractors shall be deemed employees of 3. This Agreement shall not be utilized in any form on Unionized Building Trades Construction Projects except for jobs of three (3) consecutive days duration or less. It is intended that this Addendum shall not be used to circumvent the Heavy Construction or Crane Rental Agreement. 4. Hours of Work: Flexible Start Time - 6:00 a.m. to 9:00 a.m. It is agreed that eight (8) hours shall constitute a regular work day, and that five (5) days, forty (40) hours shall constitute a regular work week. (c) Overtime - The first two (2) hours overtime Monday through Friday shall be paid at the rate of time and one-half (1-1/2) and double time thereafter. Double time shall apply on Sundays and Statutory Holidays. 5. Holiday Pay and Statutory Holidays: Employees with less than five (5) years of service will receive ten percent (10%) of gross earnings. Crane Truck Addendum Page 1 of 9

2 Employees in their fifth (5 th ) year of service and over will receive twelve percent (12%) of gross earnings. Employees in their tenth (10th) year of service or over will receive fourteen percent (14%) of gross earnings. General Holidays as per Employment Standards. 6. Hourly Wage Rates Company Drivers Crane Operator Rates - Hydraulic: Boom Trucks and Knuckle Booms Up to 50 Ton Less than 3 months employment and Yard Maintenance* May 1, 2012 May 1, 2013 May 1, 2014 May 1, 2015 $34.32 $35.47 $36.77 $38.27 $31.32 $32.47 $33.77 $35.27 * The Company will offer to all Employees the option to accept yard maintenance work when there is no delivery work scheduled for his truck. This position will be on a strictly voluntary basis and will not apply to work on or for his equipment. 7. Benefits and Pension Plan Pension Plan Contribution Dependent Contractors: Effective May 1, 2012, the Employer shall make contributions at the rate of four dollars and fifteen cents ($4.15) per hour for which wages are earned hereunder by each employee within the scope of this Agreement to the Operating Engineers' Pension Plan. The Pension Plan contribution shall increase as follows: Effective May 1, 2013, this contribution shall increase to four dollars and forty cents ($4.40). Effective May 1, 2014, this contribution shall increase to four dollars and seventyfive cents ($4.75). Effective May 1, 2015, this contribution shall increase to four dollars and ninetyfive cents ($4.95). Pension Plan Contribution: Company Drivers Effective May 1, 2012, the Employer shall make contributions at the rate of five dollars and seventy-five cents ($5.75) per hour for which wages are earned hereunder by each employee within the scope of this Agreement to the Operating Engineers' Pension Plan. Crane Truck Addendum Page 2 of 9

3 The Pension Plan contribution shall increase as follows: Effective May 1, 2014, this contribution shall increase to six dollars ($6.00). Effective May 1, 2015, this contribution shall increase to six dollars and fifty cents ($6.50). (c) Benefits Plan Contribution: All Employees The Employer shall make contributions at the rate of two dollars and thirty cents ($2.30) per hour for which wages are earned hereunder by each employee within the scope of this Agreement to the Operating Engineers' Benefits Plan. Effective May 1, 2013 this contribution shall increase to two dollars and forty cents ($2.40). Effective May 1, 2014, this contribution shall increase to two dollars and fifty-five cents ($2.55). Effective May 1, 2015, this contribution shall increase to two dollars and seventy cents ($2.70). 8. Schedule of Remittances Company Operators May 1, 2012 May 1, 2013 May 1, 2014 May1, 2015 Benefits Plan $2.30 $2.40 $2.55 $2.70 Pension Plan $5.75 $5.75 $6.00 $6.50 Apprenticeship Plan $0.15 $0.15 $0.15 $0.15 O. E. Advancement Fund $0.10 $0.10 $0.10 $0.10 Supp. Dues $0.69 $0.71 $0.74 $0.77 TOTAL $8.99 $9.11 $9.54 $10.22 Dependant Contractors May 1, 2012 May 1, 2013 May 1, 2014 May 1, 2015 Benefits Plan $2.30 $2.40 $2.55 $2.70 Pension Plan $4.15 $4.40 $4.75 $4.95 Apprenticeship Plan $0.15 $0.15 $0.15 $0.15 O. E. Advancement Fund $0.10 $0.10 $0.10 $0.10 Supp. Dues $0.69 $0.71 $0.74 $0.77 TOTAL $7.39 $7.76 $8.29 $8.67 The Employer shall remit one hundred forty (140) hours per month for each employee and dependent contractor, employed under this Addendum. Crane Truck Addendum Page 3 of 9

4 The Employer agrees to pay 50% of any future increased costs to the Schedule of Contributions for Dependent Contractors and 100% for the employees. Dependent Contractors These contributions shall be funded 50% by the Employer and 50% by the dependent contractor. Effective May 1, 2012 total contributions for the dependent contractor shall be seven dollars and thirty-nine cents ($7.39) per hour. Effective May 1, 2013 total contributions for the dependant contractor shall increase to seven dollars and seventy-six cents ($7.76) per hour. Effective May 1, 2014 total contributions for the dependant contractor shall increase to eight dollars and twenty-nine cents ($8.29) per hour. Effective May 1, 2015 total contributions for the dependant contractor shall increase to eight dollars and sixty-seven cents ($8.67) per hour. 9. General: (c) The Employer shall pay to all employees a Safety Allowance of seventy-five dollars ($75.00) per year. This allowance shall be payable on July 1st of each year and will require one (1) year of employment with F & G Delivery to qualify. Metro travel shall not apply. Seniority SENIORITY LIST: - The Company shall at least once every six (6) months, post and keep posted in a conspicuous place on its premises an up-to-date list of all employees covered by this Agreement showing the date when each commenced his employment with the Company. The Company shall forward to the Union a copy of each list on the date of its posting. Seniority for the intent of this memorandum shall mean the length of service with the Company as determined by the date of hire for Company Drivers, Dependent Contractors and Drivers of Dependent Contractors operating Knuckle boom and Stiff boom crane trucks. (d) Hiring - Dependent Contractors The Union will be notified prior to any dependent contractor new hires. (e) No monetary deductions are to be made from dependent contractors' cheques without prior authorization and two weeks' notice in writing. Authorized payroll deductions will be itemized on the payroll cheque statement. Crane Truck Addendum Page 4 of 9

5 (f) (g) No additional fees or expenses are to be incurred by dependent contractors without prior authorization and two weeks' notice in writing. Company Signs The dependent contractor will display the complete Company signs as provided by the Company on the doors or as close to the doors as possible as a condition of supplying dependent contractor service for the Company. (h) Insurance Coverage The Company and the dependent contractor shall each provide and maintain adequate insurance coverage specific to the areas of responsibility of each party and as required by statute. The cost of providing and maintaining such insurance coverage will be borne by the Company and the dependent contractor respectively. The dependent contractor shall provide and maintain such insurance as a condition of supplying dependent contractor service for the Company. Each shall file with the other proof of insurance coverage. The insurance coverage to be provided and maintained is as follows: Company Motor Cargo General and Commercial Liability WCB office, dispatch and Company drivers Trailer insurance Company owned Crane Commercial General Liability* * Purchased by the Company on behalf of the dependent contractors and charged back to the Dependent Contractors with repayment to the Company by the dependent contractors by payroll deduction. * The Company will provide the dependent contractor with a copy of the Crane Commercial Liability policy commencing with the current policy in effect. The policy will contain description of coverage and the cost of such policy. Dependent Contractor Vehicle/Truck Insurance 3rd Party Liability ICBC WCB Personal Protection Plan Trailer insurance dependent contractor owned All Dependent Contractors will carry no less than five million dollars ($5,000,000) third party liability Crane Truck Addendum Page 5 of 9

6 (i) Company Representatives - Crane Trucks 1) Members operating Crane Trucks owned by Company representatives and/or Dependent Contractors will be compensated as Company drivers. 2) Representatives will promote/sell the Company trucking fleet consisting of: - Knuckle boom and stiff boom crane trucks 3) Representatives will have customers call in all orders directly to dispatch. 4) Crane Trucks required for work orders from job site assessments submitted by sales representative will be determined by dispatch requirements agreed to in this Memorandum. 5) Representatives will not assign Crane Trucks to work/jobs, if there is a specific truck required the dispatcher will assign the work. (j) Toll Reimbursement The Company will reimburse Dependent Contractors for all toll fee expenditures incurred for revenue generating business. (k) Fuel Reimbursements Dependent Contractors will receive a fuel reimbursement of gross revenues (less HST) as follows: Effective May 1, 2012: 1% - capped at $150, maximum reimbursement $1,500.00, employer commissions will not apply. Effective May 1, 2013: add 1% for a total of 2% - capped at $150, maximum reimbursement $3,000.00, employer commissions will not apply. Effective May 1, 2014: add 0.5% for a total of 2.5% - capped at $150, maximum reimbursement $3,750.00, employer commissions will not apply. Fuel Surcharge 10. Damage Claims Dependent Contractors will receive one hundred percent (100%) of gross revenue for any fuel surcharge charged to the customer. Damage Claims will be handled as follows: Crane Truck Addendum Page 6 of 9

7 (c) (d) (e) All damage claims must be reported to the Company or to the dispatcher and the union shop steward as soon as feasibly possible and no later than twenty-four (24) hours of the incident. It will be the responsibility of the dependent contractor or his driver to submit to the Company in writing, a detail report of the incident within forty-eight (48) hours of occurrence. The Company will review the damage claim incident report and perform a thorough investigation and to determine if a penalty is to be assessed against the dependent contractor or driver of. A penalty of up to a maximum of $ may be made if operator / driver negligence is substantiated. The penalty assessment can be made by payroll deduction with two weeks prior notice in writing. Repeated damage claim occurrences by a dependent contractor or driver there of may be subject to further disciplinary action. 11. Posting for New Equipment All new equipment required by the Company will be posted on the bulletin board for five (5) consecutive working days. Seniority and ability will be the deciding factor in awarding the new equipment posting. 12. Crane Dispatchers Equipment Crane dispatchers will be restricted from owning Truck & Crane Equipment working for the Company. 13. Commissions Standard commissions between dependent contractors and the Company will be no less than seventy-five percent (75%) in favour of the dependent contractors. This applies to the following: Regular Hourly Rate charge out work assignments. Customer Discount Hourly Rate charge out work assignments. Job Quote charge out work assignments specific to one (1) piece of equipment being employed. Industrial Machine Move Job Quote charge out work assignments requiring multiple truck units. Each truck unit involved in this charge out work assignment will be compensated based on the number of hours worked plus travel time, times the standard hourly rate of pay for such equipment types required. Crane Truck Addendum Page 7 of 9

8 Commissions - Specialty Trailers & Work outside Metro Vancouver The commissions between dependent contractors and the Company when required to use specialty trailers (Step Decks and Double Drop Trailers) will be no less than seventy-eight percent (78%) in favour of the Dependent Contractors. The commission between Dependent Contractors and the Company for work required outside Metro Vancouver will be no less than eighty percent (80%) in favour of the dependent contractors. The Company will advise the dependent contractor the nature of the charge out at the time of the work assignment, including time allotment and rate. 14. Dispatch Guidelines Customers' driver name requests will apply under specific conditions. All name requests must be called into dispatch directly by customers. Conditions where name requests will be considered will include, but not be limited to: Special equipment to perform the job requirements. Operator is completing a job assignment previously started and still in progress. Operator has been trained in the safety practices and/or pre-access job site testing requirements of the customer e.g. refinery work. Potential of work loss for a very valuable customer understanding the customer's rationale for such driver and the acknowledgment that the Company has other operators capable of performing the work requirements. All jobs must go through and be assigned by Company dispatch for the purpose of compensation. Dependent Contractors will inform customers who initiate name requests with them to call dispatch directly. Dispatch will make the final determination of operators' work assignments taking into consideration: Adherence to seniority protocol. The overall workload demand for the day. And acting reasonably in the best interests of customers, operators and the operational effectiveness of the Company. Dependent contractors will only perform work that is Company dispatched and assigned. Crane Truck Addendum Page 8 of 9

9 If a Dependent Contractor conducts non Company dispatched and assigned work, he must obtain the Company's approval prior to commencing the work and he must specify the reasons why the work is required to be done. e.g. volunteers for a special cause or event. 15. Duration This Addendum shall become effective from May 01, 2012 and shall expire on April 30, Signed this day of, F & G DELIVERY LTD. INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 115 Lloyd Ford Frank Carr David Robinson Bob Higgs Lynnae Jean FC/sda cope378 Crane Truck Addendum Page 9 of 9

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