ARC BOILER REPAIRS OLD CASTLE, ONT ARlO

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1 AGREEMENT between ARC BOILER REPAIRS OLD CASTLE, ONT ARlO Hereinafter referred to as the "Employer" and the INTERNATIONAL BROTHERHOOD OF BOILERMAKERS, IRON SHIP BUILDERS, BLACKSMITHS, FORGERS AND HELPERS, LOCAL 128, TORONTO, ONTARIO Hereinafter referred to as the "Union" ARTICLE 1 - RECOGNITION The Employer recognizes the Union as the sole collective bargaining agency for all employees employed in its fabricating plant located in Windsor, Ontario. This Agreement shall not apply to persons above the rank of Foreman, Office Staff and Stationary Engineers. ARTICLE 2- MANAGEMENT RIGHTS

2 The Employer reserves the undisputed right to operate and manage its business in all respects: To hire, promote, discharge, suspend or discipline employees for just or reasonable cause provided that a claim by an employee that he has been discharged or disciplined without reasonable cause may be subject to a grievance. ARTICLE 3 - HOURS OF WORK (a) Eight (8) hours per day shall constitute a day's work. Starting and quitting time shall be subject to local and climatic conditions. Forty (40) hours per week shall constitute a week's work. Monday to Friday inclusive. (b) There will be two (2) paid fifteen ( 15) minute breaks on each shift. One in the morning and one in the afternoon. ARTICLE 4- SHIFT WORK When afternoon or second shift is being worked, there shall be a shift bonus of one dollar ($1.00) per hour, with a paid lunch. On midnight or third shift, a bonus of one dollar and fifty cents ($1.50) per hour will apply. ARTICLE 5- RATES OF WAGES SECTION 1 The following minimum rates of wages per hour are effective as follows: CLASSIFICATION EFFECTIVE EFFECTIVE EFFECTIVE Sept. 1/2011 Sept. 1/2012 Sept. 1/2013 Working Foreman: Boilermaker/Fitter/ HVAC Mechanic : Class "A" Welders/ Pipefitter Class "B" Welders: Helper A: Helper B: * Rates may change due to increase in pension contributions. 2 Section 2 - For all work performed on erection jobs where other trades are involved in the building and construction field, and all work performed outside of Ontario the Employer shall pay the most resent prevailing Boilermaker's maintenance field rate and inform the Union prior to out of Province work commencing. Section 3 - Boilermakers National Pension Fund (Canada)

3 The Employer shall contribute two dollars per hour to the Boilermakers National Pension Fund (Canada) for all hours worked by all employees covered by this agreement. Contributions on all overtime hours shall be paid at the applicable overtime rates as outlined in Article 7. * Rate may change due to increase in contribution. ARTICLE 6 - HELPER IMPROVERS The Employer may designate employees who shall be termed Helper Improvers and pay these particular designated employees an additional twenty-five cents per hour after each six months until their rate of pay equals the minimum rate of pay for Class B Welders. Where it is found that the Helper Improver is not making satisfactory progress, he shall be reduced to the classification of Helper. ARTICLE 7 - OVERTIME Section 1- Overtime rates for work performed shall be paid for on the basis of time and one-half ( 1-1 /2) for the first four ( 4) hours after the close of the regular working day and on Saturdays for eight (8) hours, after which double (2) time shall be paid. Sundays and Paid Holidays shall be paid for at double (2) time rates. Section 2- Call in pay shall be four (4) hours at time and one half (1-1 /2) after normal daily working hours and Saturdays, Sundays and Holidays will be paid for at (2x) double time. ARTICLE 8- VACATIONS WITH PAY Section 1 -All employees with less than one (1) year's service shall be paid vacations by the Employer at the rate of four percent ( 4%) of the employee's total earnings. Section 2 - All employees with one ( 1) year or more of service shall be entitled to two (2) week's vacation at their regular hourly rate of pay or four percent (4%) of employee's total earnings, whichever is greater. Section 3- All employees with five (5) years or more of service shall be entitled to three (3) week's vacation at their regular hourly rate of pay or six percent (6%) of the employee's total earnings, whichever is greater. Section 4 -All employees with ten ( 10 ) years or more of service shall be entitled to four ( 4) week's vacation at their regular hourly rate of pay or eight percent (8%) of the employee's total earnings. whichever is greater. Section 5- Vacation pay-shall be computed from July 1st to June 30th. Section 6- Request for vacations shall be made by the employee by April 30, each year. Preference for granting vacation shall be determined on the basis of seniority provided that the request does not conflict with operational requirements of the Company. 3

4 ARTICLE 9 PAID HOLIDAYS Section 1 -The thirteen (13) paid holidays to be paid for shall be as follows: New Year's Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Day Before Christmas Day Christmas Day Boxing Day Day Before New Year's Day Section 2 - The employee must be at work the first working day before a holiday and be at work the first working day after, to be paid for the holiday. If unable to be at work the working day before or the working day after a holiday due to sickness, the employee must have a doctor's certificate stating he was unable to be at work. Section 3- One paid personal paid holiday for each employee per year, shall be allotted. It is understood that the company shall be given thirty days notice prior to personal paid holiday and union be informed once employee has taken personal paid holiday. The employee will get these days off with pay, to be taken at a time of mutual agreement between the Company and the employee. ARTICLE 10- UNION SECURITY AND CHECKOFF Section 1 -The Employer and Union agree that all employees covered by this Agreement shall be members in good standing of Local 128, International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, and maintain their membership in said Local in accordance with the Brotherhood Constitution during the life of this Agreement. Section 2 -The Employer agrees that all new employees shall become members of Local 128 within ninety (90) days from the start of employment and remain members during the life of this Agreement. The Employer shall deduct the amount of monthly dues and initiations from the wages of the employees and remit same to Local 128 Secretary Treasurer each month. The Employer shall also deduct one half of one percent(%%) (Shop dues assessment) of the gross hourly wage of each member. This shall be deducted weekly and submitted monthly along with the monthly dues check-off. ARTICLE 11- CONDITIONS For the purposes of carrying out this Agreement the Employer concerned shall deal with the accredited Representative of the International or Local Union. 4

5 ARTICLE 12 SENIORITY Section 1 -Seniority plus ability to perform the work required shall govern when forces are reduced or on recall to work. Section 2- New employees shall have no seniority, but, on completion of probationary period of ninety (90) calendar days of employment, their seniority shall be established and dated back to the time of hiring. Section 3 - Employees who are laid off shall maintain recall rights and seniority for a period of twelve ( 12) months from date of layoff. ARTICLE 13 GRIEVANCE PROCEDURE Any employee or group of employees covered by this Agreement having a grievance shall first take the matter up with their Foreman with or without the assistance of the Shop Steward within four (4) working days. Failing to reach a settlement within forty-eight (48) hours, the grievance shall be presented in writing to the Plant Superintendent who will discuss the matter with the employee or group involved and the Shop Committee. Failing to reach a settlement with Superintendent within forty eight (48) hours, the Union Committee shall be entitled to have the assistance of an International Representative of the Union if necessary. ARTICLE 14- ARBITRATION Should any difference arise as to the proper interpretation of this Agreement, the case must go to arbitration as is provided for in the Ontario Labour Relations Act. ARTICLE 15 HEALTH AND WELFARE Section 1 - The Employer will pay the full cost of Health Plan as agreed to by the Union and Management. The company shall pay for dental benefit after employee has submitted proper forms for reimbursement and has waited 21 days for health plan to reimburse employee. Section 2- Upon presentation of receipt, safety equipment or broken work related tools will be reimbursed. Section 3- New employees to receive benefits after six (6) months employment. Section 4- Welders shall be supplied with proper leather welding gloves ARTICLE 16 BEREAVEMENT PAY 5 Section 1 - On the death of a Father, Mother, Common law Spouse, Brother, Sister, Wife or Child of an employee, he will be granted three (3) days leave of absence with pay, provided they are working days. These shall include the day of the funeral and the two days immediately

6 preceding the funeral. This clause only to be effective if the funeral is attended. Proof rests with the employee. Section 2- On the death of a Mother-in-law, or Father-in-law, Section 1 shall apply except that the employee so affected will be granted leave of absence of one ( 1) day with pay to attend the funeral. ARTICLE 17- NO STRIKE. NO LOCKOUT During the term of this Agreement, the Union agrees that the employees will not participate in any strike, slow down, sit down or any other action which will interfere with work or production and the Employer agrees there will be no lockout of employees. Article 18 License Renewals and Work Boot Allowance Section 1- Company to pay for license renewals that are trade related to work being performed by company Section 2- Company to provide dollars for work boots, employee shall produce receipts after purchase for reimbursements of costs associated to work boots. ARTICLE 19- DURATION OF AGREEMENT This Agreement is effective on September 1st, 2011, and is to remain in full force, effective to August , and from year to year thereafter. Should either party to the Agreement desire any changes, written notice must be given by the party desiring the change, stating in full the desired change or changes, thirty (30) days prior to the anniversary date of the Agreement. For: Arc Boiler Repairs For the: International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, Local 128 John Pinkerton Owner/ Manager Jim Watson Business Manager/Secretary Treasurer IBB Local 128 Signed this _ 1 h day of 2011.

7 Opeiu: 343 Union Proposals August Strike Family day Strike language in Section 3 "incentive day" add in section 3 two personal paid holidays, union to be informed of when days are taken Company to pay for license renewals that are trade related to work being performed by company Company to pay for dental benefit after employee has waited 30 days for paper work to be filed Company to purchase two pairs of work boots per year Employee concerns Company Equipment needs to be regularly up graded and or maintained

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