agreement - ontario · 2017. 11. 16. · agreement between whiting equipment canada inc. p.o.box217...

AGREEMENT

BETWEEN

Whiting Equipment Canada Inc.

P.O.Box217 Welland, Ontario

-and-

United Steel, Paper and Forestry, Rubber, Manufactudng, Energy, Allied Industrial and

Se1·vice Workers International Union

LOCAL 6728

INDEX

Article 1 -Purpose Article 2 - Recognition Atiicle 3 - Relationship Article 4 - Management Rights Article 5 -Plant Committee Article 6- Gtievance Procedure Article 7 -Arbitration Article 8 -Management or

Union Grievances Article 9 - Discharge Cases Article 10- No Strike, No Lockouts Article 11 -Wages Article 12- Hours ofWork and Overtime Article 13- Vacations with Pay Article 14- Seniority Article 15 -Posting of Notices Article 16 -Statutory Holidays Article 17 - Safety and Health Article 18 - General Article 19 -Notices Article 20 - Pay on Day of Injury Article 21 -Copies of Agreement Atiicle 22 -Handicapped Employees Article 23 - Shift Premiums Atiicle 24 - Call Out Pay Article 25 - Educational Assistance Article 26- Insurance Atiicle 27 -Pensions Article 28 - Pay Date Article 29 -Duration Exhibit A- Wage Rates

-Service Qualifications

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Page

4 4 5 6 7 8

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12 12 13 13 13 16 17 22 23 24 26 28 28 28 29 29 29 30 30 30 30 31 '7 J~

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Exhibit B -Educational Assistance 38 Exhibit C- Insurance 39 Exhibit D -Pension Plan Agreement 43 Exhibit E 49 Exhibit F- Pension Plan for Hr. Rated Employees 50

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THIS AGREEMENT dated the 1st Day of March A.D., 2017

BETWEEN

WHITING EQUIPMENT CANADA INC. Welland, Ontario

(hereinafter called the "Company and/or its successor, for the tenn of this agreement")

OF THE FIRST PART:

-and-

UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED

INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION, LOCAL 6728

(hereinafter called the "Union" or "United Steelworkers") OF THE SECOND PART:

ARTICLE 1 -PURPOSE 1.01 The general purpose of this agreement is to establish mutually satisfactory relations between the Company and its employees and to provide machinery for the prompt and equitable disposition of g1ievanccs, and to establish and maintain satisfactory working conditions, hours of work and wages for all employees who are subject to the provisions of this agreement.

ARTICLE 2- RECOGNITION 2.01 The Company recognizes the Union as the sole collective bargaining agency for all its employees at Well and, save and except foremen, persons above the rank of foreman, oHice and sales stat1~

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2.02 The Union agrees that the employee has the responsibility of giving a fair days work lor a fair days pay. 2.03 The tenns and conditions set forth in this agreement shall have full force and effect tor all employees in the bargaining unit as described in the preceding paragraph. 2.04 Persons whose regular jobs are not in the bargaining unit shall not work on any jobs which are included in the bargaining unit except for purposes of instruction, expe1imenting, or in emergencies when regular employees are not available.

ARTICLE 3- RELATIONSHIP 3.01 All present employees covered by this Agreement and all new employees not later than 30 days aJler the date of their employment shall become and remain members of the Union to the extent of paying their initiation fees and the Union dues for the duration of this Agreement as a condition of their continued employment with the Company. 3.02. The Employer shall deduct Union dues including, where applicable, initiation fees and assessments, on a weekly basis, from the total earnings of each employee covered by this agreement. The amount of dues shall be calculated in accordance with the Union's Constitution.

All dues, initiation fees and assessment shall be remitted to the Union forthwith and in any event no later than fitleen (15) days following the last day of the month in which the remittance was deducted. The remittance shall be sent to the lntemational Secretary Treasurer of the United Steelworkers, AFL-CIO-CLC, P.O. Box 13083 Postal Station 'A', Toronto Ontario M5W I V7 in such lom1 as shall be directed by the Union to the Employer along with a completed Dues Remittance Fonn R-115. A copy of the Dues Remittance Fonn R-115 will also be sent to the Union office designated by the Area Coordinator.

The remittance and the R-115 lom1 shall be accompanied by a statement containing the tollowing information:

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(a) A list of the names of all employees trom who dues were deducted and the amount of dues deducted;

(b) A list of the names of all employees from whom no deductions have been made and reasons;

(c) This infonnation shall be sent to both Union addresses identified in Article

3.02 in such form as shall directed by the Union to the Employer.

The Union shall indemnify and save the Employer hannless against all claims or other fonns ofliability that may arise out of any actions taken by the Employer in compliance with this article.

The Employer, when prepming T-4 slips for the employees, will enter the amount of Union dues paid to the employee during the previous year.

3.03 The Company and the Union agree that there will be no discrimination against any employee because of race, creed, color, sex, national origin, union membership or union activity. 3.04 The Union will not engage in Union activities during working hours or hold meetings at any time on the premises of the Company except as expressly penni !ted by this Agreement.

ARTICLE 4- MANAGEMENT RIGHTS 4.01 The Union acknowledges that it is the exclusive function of the Company to hire, promote, demote and transfer and suspend employees, and also the right of the Company to discipline or discharge any employee for reasonable cause provided that a claim b-y an employee, who has acquired seniority, that he has been discharged or disciplined without reasonable cause may be the subject of a grievance and dealt with as hereinafter provided. The Company agrees to exercise those functions in a manner not inconsistent with the

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provisions of this Agreement. 4.02 The Union turther recognizes the 1ight of the Company to operate and manage its business in all respects in accordance with its commitments and responsibilities. The location of the plants, the direction of the working forces, the products to be manufactured, the schedules of production, the methods, processes and means of manufacturing used, the right to decide on the number of employees needed by the Company at any time, the right to use improved methods, machinery and equipment and jurisdiction over all operations, building, machinery, tools and employees, are solely and exclusively the responsibility of the Company. The Company also has the right to make and alter from time to time rules and regulations to be observed by the employees, but shall discuss any proposed alterations with the Union Committee in order to give them an opportunity of making representations in regard to the proposed changes before the altered rules are put into effect. The Company agrees to exercise these functions in a manner not inconsistent with the provisions of this Agreement.

ARTICLE 5- PLANT COMMITTEE 5.0 I The Company acknowledges the right of the Union to appoint or otherwise select a plant committee otherwise known as the Union Grievance Committee which shall be composed of four employees. Each member of this committee shall have at least twelve (12)

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months seniority with the Company and shall be regular employees of the Company during their tenn of office. The Company will recognize and deal with the said committee on any matter properly arising out of this Agreement and the said committee will co-operate with the Company in the administration of this Agreement. 5.02 The jurisdiction of each of the stewards (not to exceed four (4) in number including the chief steward) and the name of each member of the grievance committee from time to time selected shall be given to the Company in writing and the Company shall not be required to recognize any such steward or member of the grievance committee until it has been notified in writing by the Union of the name and jurisdiction of same. 5.03 The Company undertakes to instruct all members of its supervisory staff to co-operate with the stewards in the can·ying out of the terms and requirements of this Agreement. 5.04 The Union undertakes to instruct all members to cooperate with the Company in canying out the te1ms and requirements of this Agreement. 5.05 At least one (I) steward will be allowed on each shift of the employees scheduled work hours.

ARTICLE 6- GRIEVANCE PROCEDURE 6.01 The parties to this Agreement are agreed that it is of the utmost importance to adjust complaints and grievances as quickly as possible.

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6.02 Grievances properly ansmg under this Agreement shall be adjusted and settled as follows: Step No. I The aggrieved employee's steward shall present the employee's grievance orally or in writing, to the employees foreman. The employee may be present if he so desires. If a settlement satisfactory to the employee and the Union is not reached within 2 working days (or any longer period which may be mutually agreed upon) the grievance may be presented as follows at any time within 3 working days thereafter. Step No. 2 The steward shall, with the employee present if he so desires, present the grievance (which shall be reduced to w1iting on a form supplied by the Union and approved by the Company) to the General Foreman, who shall consider it in the presence of the person or persons presenting same and the foreman, and render his decision in writing. Should no settlement satisfactory to the Union and the employee be reached within 2 working days, the next step in the grievance procedure may be taken at any time within 3 working days thereafter. Step No 3 The Union Grievance Committee shall meet as promptly as possible with the management to consider the grievance. At this stage, they may be accompanied by a representative of the International Union if his presence is required by either pariy. The steward who initiated the grievance be allowed to attend in order to present any relevant facts.

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6.03 If final settlement of the grievance is not completed within 7 working clays after deliberations have commenced and if the grievance is one which concems the interpretation or alleged violation of the Agreement, the grievance may be referred by either pmiy to an Arbitrator as provided in Article 7 below, at any time within 30 clays thereafter, but not later. 6.04 The Union shall have the right to initiate a group grievance or a grievance of a general nature, at Step No.3 of the Gtievm1ce Procedure. 6.05 When the legitimate business of a grievance committeeman or steward should require him to leave his job or his department during working hours, he shall first receive permission from his foreman, which shall not be unreasonably withheld and he shall not suffer any loss of pay for time spent in the perfom1ance of these duties during his regular working hours. 6.06 Meetings of the Grievance Committee and Management will be held during regular scheduled working hours, and members of the Grievance Committee will not lose any pay for the time spent during meetings with management during their regular scheduled work hours.

ARTICLE 7- ARBITRATION 7.01 Both parties to this Agreement agree that any dispute or grievance concerning the interpretation or alleged violation of this

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Agreement, which has been properly carried through all the steps of the grievance procedure outlined in Article 6 above, and which has not been settled, will be referred to an arbitrator at the request of either of the parties hereto. 7.02 When either party requests that any difference as hereinbefore provided be submitted to arbitration, it shall make such request in writing addressed to the other party of this Agreement. A single Arbitrator shall be selected at the mutual agreement of the Company and the Union. If they are unable to agree on an Arbitrator, they may then request the Minister of Labour for the Province of Ontario to appoint an impartial Arbitrator provided that such Arbitrator shall not be selected fi·om the Civil Service. If the gtievance concems a job standard, then the Arbitrator shall be a qualified Industrial Engineer. 7.03 The decision of an arbitrator constituted in the above manner shall be binding on both parties. 7.04 The arbitrator shall not have any power to alter or change any of the provisions of this Agreement or to substitute any new provisions for any existing provisions, nor to give any decision inconsistent with the terms and provisions of this Agreement. 7.05 Each of the parties to this Agreement will bern· the expenses of the arbitrator appointed by it. 7.06 No person shall be selected as arbitrator who has been directly involved in attempts to negotiate or settle the grievance.

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7.07 At any stage of the gtievance procedure, including arbitration, the conferring parties may have the assistance of the employee or employees concerned and any necessary witnesses, and all reasonable anangements will be made to penni t the confening parties to have access to the plant and to view disputed operations and to confer with the necessary witnesses.

ARTICLE 8- MANAGEMENT OR UNION GRIEVANCE 8.01 It is understood that the Management or Union may bring forward at any meeting with the Union Gtievance Committee or Management any complaint or violation of the Agreement by the Union or Management and that, if such complaint by the Management or Union is not settled to the mutual satisfaction of the confening parties, it may be treated as a grievance and refened to arbitration in the same way as the grievance of an employee.

ARTICLE 9- DISCHARGE CASES 9.01 Management shall not take disciplinary action without first verbally warning the employee in the presence of a Union Steward unless the circumstances justify immediate discipline or discharge. In the event of a claim that an employee has been clischargecl or disciplined unjustly or unreasonably the grievance shall be filed at Step No. 3 of the Grievance Procedure within 5 working days. 9.02 Warnings shall be given in writing and in

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the presence of a Union Committeeman or Steward. The Company and the Union agree that disciplinary penalties shall not be imposed unreasonably or unjustly. Written warnings will be removed from the employee's record after six (6) months from the date of the waming. 9.03 Such special grievance may be settled by confirming the management's action in dismissing the employee, or by reinstating the employee with full compensation for time lost, or by any other arrangement which is just and equitable in the opinion of the conferring parties, or in the opinion of the Arbitrator. 9.04 When an employee has been dismissed without notice, he shall have the right to interview his steward for a reasonable period of time before leaving the plant prermses.

ARTICLE 10- NO STRIKES- NO LOCKOUTS 10.01 The Union agrees that, during the life of this Agreement, there will be no strikes and the Company agrees that there will be no lockouts.

ARTICLE 11 -WAGES 11.01 Wage rates shall be those in effect as of the date of this Agreement as indicated in Exhibit "A" attached hereto and fanning a part of this Agreement. 11.02 Employees who have seniority on March 1, 2006 will be retained at their curTent job class tor all work assigned. 11.03 If job classes 2, 3, 4, 5, 6, 8, 9 or 12 are reintroduced, the rates shown in Exhibit "E" Shall be used.

ARTICLE 12 OVERTIME

HOURS OF WORK AND

12.01 HOURS OF WORK 12.02 The hours of work shall be as tallows: Day Shift: 7:00a.m. to 12:00 noon; 12:30 p.m. to 3:30p.m.

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Afternoon Shift: 3:45 p.m. to II :45 p.m. Night Shift: 11 :45 p.m. to 7:45 a.m. The hours may be changed by mutual agreement between the Union and the Company. 12.03 The work week shall be from 7:00 a.m. Monday to 7:45 a.m. Saturday inclusive. 12.04 Lunch periods shall be in the employee's own time during the day shift. A half-hour paid lunch period shall be provided during the afternoon and night shift. When an employee works over two hours past the regular quitting time for his shift or more than ten hours on Saturday or Sunday, he shall receive a one-half-hour paid lunch period. 12.05 Shifts shall rotate according to present practice. Employees shall be notified during the previous week of any changes in shift. Shift changes shall not be made to avoid payment of overtime. 12.06 Two ten-minute breaks shall be given each employee in each eight-hour shift; according to present practice as follows:

DAY SHIFT FABSHOP

A.M. 10:00 to 10:10

P.M.

AFTERNOON SHIFT M/C SHOPS ALL

A.M. P.M. 10:12 to 10:22

P.M. 6:30 to 6:40

10:30 to 10:40 2:25 to 2:35 2:37 to 2:47

and an additional five minutes before lunch and five minutes before quitting time for wash up. 12.07 OVERTIME 12.08 Definition of Regular Straight-time

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Hourly Rate- The regular straight-time hourly rate means an employee's straight hourly base rate plus any applicable shit! premium. 12.09 Except in the case of emergency the Company will give at least four (4) hours notice of overtime to be worked. All overtime work shall be voluntary. Opportunities for overtime work shall be equitably distributed among those normally perfonning the work. 12.10 The Company shall pay an employee one and onehalf (I 112) times his regular straight-time hourly rate for all hours he is required to work outside his regular scheduled hours of work. 12.11 Hours worked in excess of twelve - The Company shall pay an employee two times his regular straight-time hourly rate for all hours he is required to work over twelve a day. 12.12 Saturdays and Sundays - Employees scheduled to work 8 hours on Saturday, will be paid one and one-half (I 112) times for the first four (4) hours and double time fur the remaining. All work scheduled for less than 8 hours will be paid at double time. Employees will be paid double time tur all hours worked on Sunday. 12.13 Punching in late. Employees punching in late will be penalized according to the following schedule:

Clock Pay Will Punched Commence

Day Shit! 7:03 7:00 7:04to7:18 7:15 7: f 9 to 7:33 7:30

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Atternoon Shit!

Clock Punched

3:48 3:49 to 4:03 4:04to 4:18

Pay Will Commence

3:45 4:00 4:15

and for the same ratio for succeeding pe1iods.

ARTICLE 13- VACATIONS WITH PAY 13.01 Vacation Plan- The Company recognizes the need for rest and recreation on the part of its employees and has, therefore, provided the vacation outlined in the following paragraphs. Vacations are allowed as a period of change and rest for the general good of the employee and Company alike. Therefore, continuous service without vacation, but with extra compensation, is not regarded as good policy and no employee may make such election. 13.02 Vacations are not cumulative from year to year. 13.03 Length of continuous service on July I, in the vacation year will be the essence of qualification for paid vacation. The vacation year is January I to December 31. 13.04 Vacations will be paid for at the start of the employee's vacation 13.05 New employees who have not completed one year of continuous service as of July I, shall take their vacation at the time of the plant shut- down for vacation and shall be paid vacation pay amounting to 4% of their gross wages fi·om the date of employment to July I.

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13.06 The following is the vacation schedule, effective: March I, 1991.

YEARS I 5

10 20 27

WORKING DAYS 10 15 20 25 30

13.07 The vacation period will be scheduled by the Company, and if possible, will be arranged during the months of July and/or August. If an employee desires that part of his vacation which is over the basic 10 day shut down period, outside of July or August, the Company will grant this request. If more than one employee chooses the same period, the Company will detennine the number to go, based on seniority. 13.08 The vacation pay of an employee who is absent, due to layoffs, personal or educational leave of absence in excess of750 hours during the vacation year shall be paid proportionally. 13.09 Employees will be paid vacation pay on the basis, number of days regular pay, or the equivalent percentage of yearly eamings, whichever is greater.

ARTICLE 14- SENIORITY 14.01 The first ninety (90) calendar days of employment shall for each new employee be considered a probationary pe1iod and he shall have no senimity rights during this period. After ninety calendar days of employment his seniority shall date back to the day on which his employment began.

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14.02 Seniority as referred to in this A!,'Teement shall mean length of service with the Company. 14.03 An employee shall lose his seniority under the following conditions:

(a) If the employee has been on lay-off for lack of work for a period of more than 24 consecutive months, and has less than five yems of seniority. Employees with five or more years seniority shall maintain recall rights and seniority for five years, until such time as it may be lost because of failure to return to work. Employees who are laid off in addition to maintaining seniority rights for the pe1iod outlined in this Section (a) will continue to accumulate seniority for up to one year dming such layoff period.

The intent of this new section is that this one year period of accumulation will be per each lay-of[

"An employee's credited service will change to reflect the loss of accumulated service over the one year period in cases of layoff and leave of absence only as outlined in first paragraph."

(b) He fails to report to work as soon as possible after recall trom a lay-otT in any event not later than two (2) calendar weeks after notification provided he notifies the Company within four working days of his intention. Notwithstanding the provisions of this section, an employee may request that he be passed over by the Company and the Company may grant the request without prejudicing the employee's seniority rights under this section. A copy of the Company's reply will be forwarded to the Union

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at the time. (c) He quits. (d) He is discharged for reasonable cause and is

not reinstated pursuant to Article 9. (e) He exceeds a leave of absence, unless leave

has been extended. (t) He is absent from work for five working days

without leave unless there was reasonable justification for such absence. 14.04 The Company shall maintain seniority lists which will be revised each six months. A copy of each revision will be posted in the plant and three copies shall be given to the Union. 14.05 In the event that any employee covered by this Agreement shall be promoted to a supervisory or other non-bargaining unit position he shall retain the seniority accumulated while serving in the bargaining unit plus up to twelve (12) months. 14.06 The parties recognize that job opportunity and security shall increase in proportion to length of service. It is, therefore, agreed that in all cases of changes within the bargaining unit resulting lrom vacancy, promotion, transfer, lay-off, shift preference and recall from lay-off, senior employees shall be entitled to preference. 14.07 In recognition, however, of the responsibility of the management for the ef1icient operation of the plant, it is understood and agreed that in all such cases management shall have the right to pass over any employee if it establishes that he does not have the ability or the physical fitness to perfonn the work after a reasonable trial or training period to last lor

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at least three (3) working days, provided the individual meets all qualifications as outlined in the job description. 14.08 An employee temporarily assigned to any job shall receive the rate in effect for the assigned job or the rate in effect for the employee's job whichever is the greater. 14.09 All vacancies for positions of more than one month's duration and newly-created positions shall be posted for five working days on the special bulletin board supplied for union purposes. The Union will receive a true copy of the job posting notice. An employee desiring the position must make application to management within that period. The senior employee applying for the position shall be given the appointment, provided that he is qualified to fill the position. After the job has been posted for five working days, then within a further five day period the Company shall infom1 the Union in Wiiting as to who is the successful applicant. His rate for the new job shall start from the date of the Union being informed. If there is no successful applicant, the posting will remain open until filled by new hiring, and the Union will be infonned in w1iting. If the posted job is not filled within a three month period, from the date of posting, the job will be reposted whenever necessary. "The Company has the right to recall any employee on layoff immediately, subject to any subsequent requirements of14.06 and 14.09." 14.10 Employees may, at the Company's discretion, be granted a leave of absence for

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personal reasons, of not more than thirty days without loss of seniority. Such leaves shall be requested at least one week prior to the desired starting date in writing. The request shall specify the reason and the duration. The Company agrees to grant such requests where no undue production hardships would result. Employee's failure to return on the scheduled date shall be considered reasonable cause for discharge. A leave of absence will be extended for additional 30-day periods if there is a good reason and Management and Union mutually agree. The employee must request the extension in writing before his 30-day leave is up. The Union will receive copies of approved leaves granted under this section. 14.11 An employee who has been elected or appointed by the Union to attend Union conventions, conferences or to transact business on behalf of the Union, shall be granted a leave of absence (without pay) for this purpose. The Union will infonn the Company at least 2 days in advance, in writing of the names of members so appointed or elected and the length of the anticipated absence. Leave shall be limited as follows: one employee per shift, per department. The Negotiating Committee shall be given any necessary leave of absence in order to meet in the preparing of new contract language or during negotiations for a new agreement. The negotiating Committee shall not suffer any loss of pay for time spent in pcrfonnance of these duties while meeting with the Company on Company premises.

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14.12 The Company will, in the case of a scheduled general lay-off due to a cut-back in production, give employees at least five working days' notice of the lay-off and, will give an additional day's notice to the Union. The Company will conform to the Employment Standards Act 1968 as amended by 1970, Chapter 45. 14.13 During the course of a lay-off preferential seniority will be granted to the President, Vice- President, Recording Secretary and Financial Secretary of the Union, having more than 12 years seniority, under the following conditions. One Union Officer for an employment level ofless than 35, two Union Officers for an employment level of 35 to 49, and four Union Officers for employment level of 50 or more. He would use this right to remain in his own classification.

ARTICLE 15- POSTING OF NOTICES 15.01 The Union may post any notices that may be necessary to fulfill the purpose, providing that these notices pertain to Union business. The responsibility for such notices shall be the Union President or VicePresident. 15.02 The Company will provide 3 bulletin boards, I -Washroom, 1 -Time Clock Area, I -Tool Crib for Union notices only, and no notices shall be posted except on such boards. 15.03 Except as above provided, there shall be no distribution or posting by employees of pamphlets, advertising or political matter,

cards, notices or any other kinds of literature upon the Company's property except by permission of the operations manager.

ARTICLE 16- STATUTORY HOLIDAYS 16.01 The following shall be considered as paid holidays - New Year's Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, the Day before Christmas, Cluistmas Day, Boxing Day, the Employee's Birthday, and an additional 2 statutory holidays shall be granted, and be taken between Cluistmas and New Year's Day. 16.02 If any of the above holidays fall on a Saturday, the preceding Friday will be considered the holiday; and if any of these holidays fall on a Sunday, the following Monday will be considered the holiday. 16.03 Each employee shall receive his regular day's pay for each of the statutory holidays providing the employee has worked the full shift before and after, unless excused by the Company.

A. Authorized leave of absence, up to 30 days. B. Sickness which is not paid for by insurance or

worker's compensation. 16.04 An employee required to work on any of the above named holidays shall be paid at the rate of two times his regular straight-time hourly rate in addition to his holiday pay. 16.05 In the event that one or more of the thirteen (13) paid holidays occurs during the

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employee's vacation he shall be paid for the holiday in addition to his vacation pay. 16.06 Probationary employees will be paid as required by the law.

ARTICLE 17 - SAFETY AND HEALTH 17.01 The Company and 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. 17.02 The Company shall furnish equipment and supplies, excepting personal clothing, necessary to protect employees from injury. The Union will assist the management in canying out any accident prevention program. The Company will provide the following:

A. Employees will be given up to a maximum of $250.00 per year for the purchase of safety boots and coveralls to be paid as a re-imbursement.

B. Prescription safety glasses, first and all subsequent replacements to a $200.00 maximum to be paid as a re-imbursement.

No new employee will be reimbursed for A or B, until their probationary pe1iod is completed. 17.03 The Company and the Union agree to name a safety and health committee, comprising two ( 2) elected Union members and one altemate, who will

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become a full member of the committee the following year) and four (4) Company members. Members of the committee should hold first aid certificates, and will serve a minimum of one year on a rotation basis. The committee's ti.mction will be to promote safety and industrial hygiene in the plant. It shall make monthly inspections of the plant and equipment and hold regular monthly meetings. The two regular members of the Safety Committee will be given one day's vacation, of their choice, after completion of one year's service on the committee. Effective March I, 1986, this paragraph will be inoperative for the remaining term of the agreement. The senior Union safety committee member will be allowed to accompany the D.O.L. safety inspector on his visits to the plant. 17.04 The Company accepts the responsibility to make adequate provisions for the safety and health of the employees during the hours oftheir employment. 17.05 The Union shall be notified immediately of each accident or injury. Upon the request of the Union the safety committee shall investigate and report as soon as possible to the Company and to the Union, on the nature and causes of the accident or injury. 17.06 An employee or group of employees who believe that they are being required to work under conditions which are unsafe or unhealthy beyond the nomml hazard inherent in the operation in question, shall have the right to: (I) file a g1ievance in the third step of the

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gnevance procedure for prefen·ed handling in such procedure and arbitration; or (2) relief from the job or jobs, without loss of their right to return to such job or jobs, and at management's discretion, assigmnent to such other employment as may be available in the plant; provided however, that no employee, other than communicating the facts relating to the safety of the job, shall take any steps to prevent another employee from working on the job. The arbitrator shall have authority to establish rules of procedure for the special handling of grievances arising under this section. 17.07 Meetings of Safety Committee and Management will be held during regularly scheduled working hours and members of the Safety Committee will not lose any pay for time spent during meetings with Management 17.08 The Union endorses the use of all safety equipment provided in the plant, and agrees that all employees should wear such equipment, i.e. safety boots, safety glasses, hard hats, ear protection (where necessary).

ARTICLE 18- GENERAL 18.01 Bereavement Pay - The Company shall grant five (5) consecutive working days with pay to any employee who has acquired seniority upon the death of the employee's spouse, and up to three (3) days' leave of absence upon the death of the employee's Father, Mother, Child, Brother, Sister, Father-in-Law, Mother-in-Law, Step-Father, Step-Mother, Brother-in-Law, Sister-in-Law, Daughter-in-Law, Son-in-Law,

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Grandparents, to pem1it the employee to attend to funeral arrangements. An employee shall be given leave of absence for the two (2) days preceding and the day of the funeral. If any of these days fall on a day which the employee would nonnally be required to work, he shall be paid for them. 18.02 Jury Duty - When an employee who has attained seniority is required to attend jury duty or as a witness for the Crown, but not in his own defense, in any court of law, the Company will pay the employee the difference between the employee's regular rate of pay which he would have earned during his period of jury duty or Crown witness, and the legal pay for jury duty or Crown witness. An employee who is discharged from jury duty or Crown witness, shall report for work for the period for which he is discharged. Any employee called for jury duty or subpoenaed as a Crown witness will be transferred to steady days for the duration of duty or witness.

Pay for subpoenaed witness shall be subject to the following provisions:

(a) the subpoena must be presented to the Plant Superintendent by the employee.

(b) the employee must endorse over to the Company all earnings while serving on a jury or as a witness, excluding mileage.

(c) all pay refeiTed to in this Article shall be at the employee's regular straight time rate. 18.03 All employees shall keep the Company infonned of correct address and personal exemption changes in writing.

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ARTICLE 19- NOTICES 19.01 Any notice to be sent to the Union shall be effectively given when posted to United Steelworkers, 1031 Barton Street East, Hamilton, Ontario LSL 3E3, and any notice to be sent to the Company shall be effectively given when posted to Whiting Equipment Canada Inc., Box 217, Weiland, Ontario.

ARTICLE 20- PAY ON DAY OF INJURY 20.01 An employee hurt in an industrial accident shall be paid for the time lost on the day he was injured at this regular daily earnings including applicable shift differential. If injury occurs during overtime he shall be paid at the overtime rate to the end of the scheduled overtime period. 20.02 The Company shall provide transportation and pay for the time spent by employees during their regular shift hours for medical treatment required as a result of an industrial accident or disease. 20.03 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 Workplace Safety and Insurance Board.

ARTICLE 21 -COPIES OF AGREEMENT 21.01 The Company and the Union desire every employee to be familiar with the provisions of

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this agreement and his rights and duties under it. For this reason the Company will print the agreement and the management will give a copy to each employee.

21.02 The Company shall continue to supply a copy of the collective agreement to each member of the Bargaining Unit. The Company will pay all costs of providing on hard copy, including printing costs. The Company shall provide the Union with two (2) electronic versions of this agreement in English fourteen days after the signing of the agreement, in both Word and PDF f01mats. The PDF file will be searchable tile and will include a completed signature page.

ARTICLE 22- HANDICAPPED EMPLOYEES 22.01 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, will be given preferential seniority in job posting for tool crib storekeeper (job class 6) for employees with more than one year of service.

ARTICLE 23- SHIFT PREMIUMS 23.01 A shift premium of seventy-five cents shall be paid each employee for hours worked during the afternoon and night shifts.

ARTICLE 24- CALL OUT PAY 24.01 An employee who has already left the premises of the Company after completion of his scheduled shift and who is recalled for work shall be paid double his regular straight-time hourly rate for all hours worked on recall up to the starting time of his scheduled shift, but in any event he shall be paid for not less than four hours at his regular straight-time hourly rate. 24.02 The Company will pay 25¢ premium per hour when employees are called out of plant to

29

perfonn work. Deliveries or pick-ups excepted. If an employee uses his own car, the Company will pay at the prevailing rate per mile. An employee will be paid for traveling time, either from home or plant, whichever applies.

ARTICLE 25- EDUCATIONAL ASSISTANCE 25.01 The Company will have an Educational Assistance Plan as per Exhibit "B" attached, which is already in effect.

Effective March 1, 1991, the Company will provide up to a collective total of 10 days leave of absence per year, with paid wages and benefits for educational courses and seminars sponsored by the Union.

ARTICLE 26 - INSURANCE 26.01 The Company will provide employee insurance as per Exhibit "C" attached to be effective March 1, 2017.

ARTICLE 27- PENSIONS 27.01 The Company will provide pensions as per Exhibit "D" attached.

ARTICLE 28- PAY DATE 28.01 The Company will pay the employee covered by this agreement on Thursday of each week for all the accrued through midnight of the preceding Sunday. Such payment procedure

30

to be instituted the week after signing of this A.s>reement.

ARTICLE 29- DURATION 29.01 This Agreement shall remain in force until March I, 2022, and shall continue in force from year to year thereafter unless in any year not more than ninety days, and not less than thirty days, before the date of its termination, either party shall furnish the other with notice of the tennination of, or proposed revision of this Agreement.

It is agreed that Exhibits A, B, C, D, E and F are an integral part ofthis contract.

f 1/ FOR THE UNION:

. pel

FOR THE COMPANY: ~""" ::;;;;2!--

· ···· .... ~- $eatty.-

\ \A

Dated: March I, 2017. IN WITNESS WHEREOF the parties hereto have

executed this Agreement on the date first above written.

31

EXHIBIT "A"

Job Effective March 1, 2017

Class Description A B c D E

1 Labourer 15.37 14.22

7 General Welder, Burner, Drill Operator 17.66 16.90 16.13 15.37

8 Machinist, Fab Fitter, Welder Apprentice 23.16 20.64 18.12 17.66 16.51

9 Electrical Apprentice 24.30 21.78 19.26

10 Shipper/Receiver 19.95 19.18 18.41

13 Code Welder, General Machinist 26.81 26.47 26.13

14 Machine Fitter, Fab Fitter 27.07 26.70 26.32

15 Electrical 27.30

EXHIBIT "A"



1 Labourer 15.59 14.42







15 Electrical 27.68

32

EXHIBIT "A"



1 Labourer 15.80 14.62







15 Electrical 28.07

EXHIBIT "A"



1 Labourer 16.02 14.83







15 Electrical 28.46

33

EXHIBIT "A"



1 Labourer 16.25 15.03







15 Electrical 28.86

34

ADDITION TO EXHIBIT "A" If the position oflead hand is created the rate of

pay will be the highest of the following: 50¢ per hour above the rate being Jed, or 50¢ per hour above his own rate.

EXHIBIT "A" COST-OF-LIVING ADJUSTMENT

The Company and the Union agree to incorporate into the collective agreement a cost-of-living allowance as follows:

1 - There will be an equivalent increase in all hourly rates equal to 1¢ per hour raise for every 4/10 (0.4) rise in the cost-of:Jiving index, using 1971 base year. 1l1e increase will be calculated on the basis of every three (3) calendar month periods, beginning March 1st, 2009. The first payment based on the preceding quarter, will be initiated when the official Canada Statistics index is released. Base index per March 1st, 2009 data.

2 - The above cost-of-living adjustment will be adjusted up or down as required by the consumer price index, but shall not decrease any wage schedules contained in Exhibit "A" of the collective agreement.

3 - This cost-ot:1iving adjustment will be capped at .40¢ during the life of this agreement.

4 - The annual wage increase is a combined rate made up of cents per hour increase plus cost of living adjustment as shown in Exhibit "A".

5 - C.O.L.A will be tl·ozen for the life of this agreement and there will be no adjustments.

35

ELECTRICAL AND MACHINIST APPRENTICE

Minimum rate will apply on registration, each succeeding period* the next rate will apply, provided the requirements specified in Ministry of Labour Regulations are met.

Tradesmen Class A rate will apply upon notification of successful completion of apprenticeship. In the event that a registered electrician is employed from outside the plant, he would be paid at the probationary rate of 15¢ less than schedule "A" for 60 days. *Period: Is the number of hours required by the

Ministry of Labour for qualification. Trade School training consists of two (2) seven

week daytime courses and one (1) eight-week daytime course, with a Ministry of Labour allowance. When an apprentice successfully completed either of these courses, the Company will reimburse him for loss of wages while attending same, in the amount of 50% of the difference of the current department of Labour allowance per Trades Qualification and Apprenticeship Act 1990.

MACHINIST, FAB FITTER AND WELDER APPRENTICE

The Trade School Training for machinist, fab fitter and welder will consist of evening or

36

daytime classes at Niagara College Campus on Woodlawn Road, Weiland, or Weiland Vale Campus at 50-59 Weiland Vale Road, St. Catharines, for a minimum of the required hours as outlined in the schedule.

Timetabling of courses and location for training will be communicated to the apprentices after same have been duly registered through the office of the Industrial Training Branch. Each course has a time allowance for pretesting and also some preparatory review.

Apprentices attending classes during their regular scheduled shifts will be given time off to attend such classes without loss of pay. Shifts shall rotate according to present practice. Shill changes shall not be made to avoid payment during classes. If shill changes are necessary to maintain production and schedules, the employees shall be notified the week previous to the change.

In the event of out-of-town travel to attend any classes, the Company will reimburse the employee at the prevailing rate per mile.

SERVICE QUALIFICATIONS

Job Class

2-3

4-8

37

Hours worked and paid for

347 at C 520 at C 520 at B 867 at C 867 at B

Job Class

9-11

12-15

Hours worked and paid for

1213 at C 1213 at B 1733 at C 1733 at B

EXHIBIT "B" EDUCATIONAL ASSISTANCE

The policy of Whiting Equipment Canada Inc., is to encourage its employees to further their education. The maximum educational allowance to be paid any employee in a calendar year is $250.00 and the policy is to refund 50% of the tuition fee and lab fees for approved courses up to the maximum allowance.

The rules and procedures set up to govem the operation of the plan are as follows: An employee may be granted a one year leave of absence to further his education. The number of any such grants, at any one time, be at the discretion of the Company and based upon seniority.

Employee Eligibility: Employees on the company seniority list. Employees on layoff will be reimbursed after retum from layoff status.

Course Limitations: The course taken must be in a subject or tleld in which the anticipated results will be beneficial to both the employee and the Company.

Schools: The School must be a recognized educational institution, either extension, correspondence day or evening schooL

38

Procedure for Operation of the Plan: I - Employees interested should procure a course

authmization form. 2 - After completion of the course authorization

fonn by the employee, the form should be given to the employee's supervisor for approval.

3 - If approved by the Plant Superintendent, the form should then be given to the General Manager for approval.

4 - If approved by the General Manager, the form will be returned for administration and payment to the employee of the company's share of the tuition, one-half but not to exceed the calendar year maximum of $250.00 when the employee has presented a receipt for the full tuition payment plus written evidence from the school of satisfactory completion of the course.

5 - The "statutory holidays" refetTed to in Article 16, shall only be paid for thirty (30) days after commencement of! eave of absence.

EXHIBIT "C"

The premiums of items I, 2, 3, 4, 5, and 6 will be paid for by the Company; items 3, 4, 5 and 6 will be extended to dependent children up to the age of 21 in fulltime attendance at a recognized College or University in Ontario.

1. O.H.I.P./EHT - Total cost of Ontario Health Insurance Plan/employer Health tax will be paid for by the Company.

2. Insurance - The Company will grant life insurance, accidental death and

39

dismembennent, and weekly accident and sickness benefits according to the following schedule. Full time employees who are new employees after the effective date of the plan, become eligible upon completion of three (3) months continuous service.

Life Insurance

Effective March 1, 2017

Hourly Wage rate X 2080

A.D.&D.

Effective March I, 2017

Hourly Wage rate X 2080

Weekly Sick Pay- The weekly sick benefits will be the lesser of:

or i) 60% of earnings based on a 40 hour work week,

ii) $485.00/week

Waiting Period Hospital

or Accident None

Sickness 3 days

Benefit Period 52 weeks

Effective March I, 1991, the Company will provide a long tenn disability plan. The L.T.D. benefit of $750.00 per month will come into effect following the 52-week S&A benefit payment, and/or 15 weeks U .I. C. sick benefit.

3. Drug Plan - The Company will provide a drug plan with 35¢ deductible and a maximum dispensing fee paid under the plan will be $7.00 per prescription, as presently provided.

40

Full time employees who are new employees become eligible after completion of three (3) months continuous service, and the Company will provide coverage for early retirees up to age 65.

4. Dental Plan- Effective March I, 2003, the Company will provide a Dental Plan for the following procedure:

Basic Se.-vices • examinations • X-rays • Preventitive Services • Surgical Services • Professional Visits • Consultation • Diagnostic Services • Restorative Services • Anesthesia Endodontics/Periodontics: • Endodontic Services • Periodontal Services • Surgical Services • In-ot1ice Laboratory charges (when applicable to the above procedures) Denture repait·/ Adjustment: • Denture Adjustments • Denture Rebasing, relining • Denture Repairs • In-ot1ice Laboratory charges (when applicable to the above) • Diagnostic casts

41

the above procedures are subject to the group policy provisions and maximums, and are based on the following schedule:

2017-2015 O.D.A. Fee Schedule 2018-2016 O.D.A. Fee Schedule 2019-20170.D.A. Fee Schedule 2020-2018 O.D.A. Fee Schedule 2021-2019 O.D.A. Fee Schedule

Full time employees who are new employees become eligible atler completion of three (3) months continuous serv1ce.

5. Semi-Private Hospital Covet·age- The Company will provide semi-private hospital coverage with effective date of coverage. Full time employees who are new employees become eligible atler completion of three (3) months continuous service.

6. Vision Care - Effective March I, 2017, the Company will pay $300.00 every two years per family towards a vision care program. Full time employees who are new employees become eligible atler completion of three (3) months continuous serv1ce.

7. Payment on Educational Leave of AbsenceThe Company will pay the costs of I, 2, 3, 4, 5, and 6 for one month following the start of Educational Leave of Absence.

8. Payment on Layoff- The Company will pay the cost items 1, 2, 3, 4, 5, and 6 tor a period of two (2) months following month of layoff or Educational Leave of Absence.

9. Early Retirees- The Company will provide coverage tor items I, 2 (Life Insurance and AD & D only), 3, 4, 5, and 6 tor early retirees up to age 65.

10. Eye Exams - The Company will reimburse the employee, spouse and each dependant child up to the age of 21 in full-time attendance at a recognized College or University in Ontario up to $100 every (2) years upon submittal of an Ontario Optometrist's receipt for an eye examination.

11. The benefits in this Exhibit C will continue to the age of 70 for all active full time employees, except as follows: item 2. L.T.D. benefit will cease at age 65, and after age 65 to age 70 Life Insurance will be Hourly Wage rate X 1040.

42

EXHIBIT "0" WHITING EQUIPMENT CANADA INC.

PENSION PLAN AGREEMENT [There will be a freeze in membership as of

March I, 2006 restricted to all current retirees and the following active members:

R.J. St. Pierre G. Cook W. Hale M. Mscichowski The above active members will continue to accrue

service per the existing plan and benefit of $24.50 monthly pension rate and supplemental monthly pension of$15.00

All new and existing employees will be enrolled in a defined contribution plan per Exhibit "F". ]

As of the I st day of May, 1967, Whiting Equipment Canada Inc. of Weiland, Ontario, hereinafter referred to as the "Company" and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, hereinafter referred to as the "Union" on behalf of employees covered by the collective bargaining agreements between the Company and the Union, hereby agree as follows:

Section 1 - Establishment of the Plan The Company will establish a pension plan,

hereinafter referred to as the "Plan", a copy of which is attached hereto as Exhibit F and made a part of this agreement to the extent applicable to the employees represented by the Union and covered by this agreement as if fully set out herein, modified and supplemented, however, by the provisions hereinafter. In the event of any conflict between the provisions of the Plan and the provisions of this agreement, the provisions of this agreement will supersede the provisions of the Plan to the extent necessary to eliminate such conflict.

Section 2 - Required Approval The Plan, as set forth in Exhibit F and as modi tied

and supplemented by the provisions of this agreement, shall be contingent upon and subject to obtaining and retaining such approval of the Minister of National Revenue as the

43

Company may find necessary to establish the deductibility tor income tax purposes of any and all payments made by the Company under the Plan - such payments to be allowable deductions when computing ta'<able income under the provisions of the Income Taxing Statutes, both Federal and Provincial, as now in effect or as hereinafter amended. Any modification or amendment of the Plan may be made retroactively by the Company with the consent of the Union, if necessary or appropriate, to qualify or maintain the Plan as a plan and trust meeting the requirements of the Income Taxing Statutes or the Pension Benefit Act, 1965 and Regulations issued thereunder.

Section 3 - Financing A- A Trustee shall be designated by the Company

and a trust agreement shall be executed between the Company and such trustee under the tenns of which a pension fund shall be established to receive and hold contributions payable by the Company, interest and other income, and to pay the pensions provided by the Plan.

B - The Company agrees to pay over irrevocably to the trustee each year during the period of this agreement, contributions or payments in an amount which shall be sufficient to tund the benefits of the Plan in accordance with the Pension Benefits Act, I 965 and Regulations issued thereunder, as detennined and certified by one or more

44

actuaries chosen by, but independent ot: the Company and qualified through Fellowship in the Canadian Institute of Aetumies (hereinafter referred to as the "Actuary".)

C- The Company by payment of the contributions as hereinbefore provided in this section shall be relieved of any further liability, and pensions shall be payable only from the pension fund.

D - The Company will cause the Union to be fumished annually with a statement certified by the actuary, that the amount of the pension fund is or is not less than the amount then required by this Section 3 to be in such fund. A statement of the assets of the fund will be fumished to the Union six months before the expiration of the labour contract.

Section 4 - Appeals Procedure If any difference shall arise between the Company

and an employee or applicant as to whether an employee or applicant is entitled to a pension hereunder or as to the amount of such pension, and agreement cannot be reached between the Company and the Union, then except as provided in Section 6 of Article 2, of the Plan, such question shall be referred to an arbitrator to be selected by the Company and by the Union. If the Company and the Union are unable to agree upon an arbitrator, then, upon application of either party, the Provincial Department of Labour will appoint an arbitrator. The arbitrator shall have authority only to decide the question pursuant to the

45

prov1s10ns of this agreement applicable to the question, but shall not have authority in any way to alter, add to or subtract from any such provisions. The decision of the arbitrator on any such question shall be binding on the Company, the Union, and the employee or applicant. The expense of arbitration shall be shared equally by the Company and the Union.

Section 5 - Automatic Retirement There shall be automatic retirement at the ages

and on the basis specified in the Plan but such automatic retirement dates shall not affect the Company's right to discharge or otherwise discipline employees subject to any pension rights under the Plan, prior to the automatic retirement date, provided, however, that any employee so discharged or disciplined shall have the right to file a grievance in accordance with the grievance procedure established in the collective bargaining agreement.

Section 6- Effect of Retirement on Employment Status and Seniority

A - An employee who retires under the terms of the pension plan shall cease to be an employee and shall have his seniority cancelled.

B - An employee who has been retired on a total and permanent disability pension and who thereby has broken his senimity in accordance with sub-section A above, but who recovers and is subsequently re-employed shall have his seniority reinstated as though he had

46

been continued on a sick leave of absence during the period of his disability retirement.

C - An employee who is retired for reasons other than for total and permanent disability, who has lost seniority in accordance with sub-section A above, and who is rehired, shall have his pension temporarily tenninated during the period of his re-employment. When such employee subsequently retires, his pension shall be increased by an amount attributable to service credited during the period of re-employment up to a maximum benefit based on a total of 40 years of credited service.

Section 7- Duration of Agreement This agreement shall become effective as of

March 1, 2009, and shall continue in effect through March 1, 2012, and thereafter for successive periods cotem1inous with the Union agreement between the Company and Union unless one of the parties hereto, at least ninety (90) days prior to March 1, 2012 or any expiration date of the Union agreement, serves written notice upon the other party of its desire to amend the Plan. Following such notice and until the terms of a new agreement are signed, the Plan shall continue in effect unless either party shall serve notice of its desire to tenninate the Plan, whereupon the Plan terminates as of March I, 2012 (or any future expiration date of the Union agreement) or thirty (30) days following service of such tennination notice, whichever is later. During the period of this agreement and any extension thereof neither

47

the Company nor the Union shall demand any change in the Plan, except as provided in Section 2 hereot~ nor shall either party be required to bargain with respect to the Plan, nor shall a change in or addition to any feature in the Plan be an objective of or be stated as reason for any strike or lockout or other exercise of economic force or threat thereof by the Union or by the Company.

IN WITNESS WHEREOF, the pmties hereto have caused this agreement to be examined on the first day of March, 20I 7, but as of the day and year first above written.

UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFA)TURING, ENERGY, ALLIED

INDUSTJii{\L AND SERVICE W()RKERS / INTERNATIONAL Ul)JJ)N> !'/ ;u. f)/ R. St. P1erre i' ~_,~·---" .C-r . ''-~ I F.kemi ~

'' J. Decoppei ' · '' HI EQUIPMENT ~A · ~------

H-R. Kroeker ~ N. Sestili :;::::;:;?f~ 9 21? B.Beatty ·(~;&._. P.Dano --:. . ';v'---c

~

48

EXHIBIT "E"

Job Class Description A B c 2. Janitor 14.67 14.28 3. Shipper/Receiver Helper,

Truck Driver 15.40 15.21 15.01 4. Tacker Helper 16.20 16.01 15.82 5. Painter 17.01 16.63 16.43 6. Storekeeper,

Tool Crib Storekeeper, Cable Assembler 17.78 17.40 17.20

8. General Maintenance, Stockkeeper 18.60 18.41 18.23

9. Machine Operator Trambeam Fitter/Welder 20.05 19.86 19.67

12. Layout 21.49 21.38 21.33

49

Exhibit "F"

WHITING EQUIPMENT CANADA INC.

PENSION PLAN FOR HOURLY RATED EMPLOYEES

Plan Effective Date: Amended & Restated:

50

May I, 1967 March I, 2006

WHITING EQUIPMENT CANADA INC. PENSION PLAN FOR HOURLY RATED

EMPLOYEES

TABLE OF CONTENTS

SECTION I PRIMARY PURPOSE AND INTRODUCTION

SECTION 2 INTERPRETATION AND DEFINITIONS

SECTION 3 MEMBERSHIP

SECTION 4 SERVICE

SECTION 5 CONTRIBUTIONS

SECTION 6 RETIREMENT DATES

SECTION 7 RETIREMENT INCOME FORMULA

SECTION S AMOUNT OF RETIREMENT INCOME

SECTION 9 MAXIMUM PENSION (DEFINED BENEFIT PROVISION)

SECTION 10 PAY!'viENT OF RETIREMENT BENEFITS

SECTION I I VESTING

SECTION 12 DEATH BENEFITS

SECTION 13 TER!v!JNATION OF El\'IPLOYMENT

SECTION 14 CONTRIBUTIONS AND FUNDING

SECTION 15 PERJ'vi!SSJBLE DISTRIBUTIONS/PROTECTION OF BENEFITS

SECTION 16 AMENDMENT OR DISCONTINUANCE

SECTION 17 DISCLOSURE

SECTION 18 ADMINISTRATION

51

Page

52

54

59

61

64

66

67

68

70

71

74

75

78

79

81

83

85

86

Section 1. Primary Pnrpose and lntrodnction

1.01 This document constitutes the Whiting Equipment Canada Inc. Pension Plan for Hourly-Rated Employees. The primary purpose of the Plan is to provide lifetime retirement benefits for eligible Employees of the Company who are employed on or after the effective date of the Plan for services rendered.

1.02 The Plan as contained herein shall be applicable to Members who are in the employment of the Company on or after March 1, 2006; benefits in respect of a Member whose employment ceased prior to March 1, 2006 shall be detennined in accordance with the tenns of the Plan at the time of such cessation of employment, except as may be specifically provided herein.

1.03 The Company expects that the Plan shall meet the requirements of the Applicable Pension Laws and the Revenue Rules and the continued registration of the Plan under both Applicable Pension Laws and the Income Tax Act of Canada is a precondition for the Plan to become and remain operative.

1.04 Effective May I, 1967, the Company established a pension plan for all hourly rated employees as herein defined by a trust agreement with a trustee for the pmvoses of providing pe1iodic payments to covered employees during their retirement. The Plan was subsequently amended several times.

1.05 Effective January 1, 1988, the Plan was revised and restated to include union negotiated benefit improvements, and to bring it into compliance with the Pension Benefits Act, 1987 (Ontario).

1.06 Effective March I, 1991, the Plan was amended and restated to include all previous amendments, to bring the Plan into compliance with changes to the Income Tax Act (Canada) effective January I, 1992, and include union negotiated benefit improvements.

1.07 Effective March I, 1991, the Plan was amended to reflect changes as requested by Revenue Canada, Taxation; amended effective January 1, 1997 to include

52

Revenue Canada's lowered age limit on when pension income must commence; and amended effective March 1, 1997 to clarify certain provisions for confonnity with the agreement with the Union.

1.08 Effective December 8, 1998, the Plan was amended to amend the definition of Spouse; amended effective March I, :2000 to include union negotiated benefit improvements; and amended effective March 3, 2000 to comply with the Pension Benefits Act of Ontario.

1.09 Effective March I, 2006, the provisions of the Plan are amended and restated to incorporate umon negotiated benefit improvements as follows:

(a) fi·ecze membership in the defined benefit provision of the Plan; no new employees will join the defined benefit provision, (b) cunent active employees will continue to accrue service and earn a pension entitlement at the cun·ent Plan benefit rate, and (c) add a defined contribution provision for new employees, and add the CUITent active employees to the defined contribution provision.

53

Section 2. Interpretation and Definitions

Interpretation

2.01 The masculine pronoun wherever used herein shall include the feminine pronoun where applicable, and the singular shall include the plural and vice versa, as the context shall require. References to a paragraph or Section n1ean a paragraph or Section in the Plan.

2.02 The Plan and all the rights and obligations hereunder shall be constmed, governed and administered in accordance with the laws of the Province of Ontario, except for those rights and obligations which are solely within the jurisdiction of Canada or another province.

2.03 All monetary references in the Plan are to be construed as being expressed in tem1s of lawful currency of Canada.

Definitions

2.04 In this Plan, the following tenns shall, unless the context clearly indicates otherwise, have the following meanmgs:

2.05 Actuarial(ly) Equivalent means a benefit of equivalent value but of different fonn of payment to a specified benefit, as detennined on a basis of calculation adopted by the Company on the advice of the Actuary and in effect on the date such detem1ination is being made. The Actuarial Equivalent of all pension benefits shall be calculated on a unisex basis (without taking the Member's sex into account). Such detenninations shall use reasonable assumptions that are acceptable under the Income Tax Act and shall be done in accordance with generally accepted actuarial principles.

2.06 Actuary means an individual li·mn time to time appointed by the Company to carry out actuarial valuations and provide such actuarial advice and services as may be required from time to time for the purposes of the Plan. The Actuary shall at all times be a person who is a Fellow of the Canadian Institute of Actumies.

2.07 Administrator means the entity responsible for administering the Plan in accordance with Section 18.01.

2.08 Anniversary Date means January 1 in each year from and including January I, 2009.

54

2.09 Applicable Pension Laws means the Pension Benefits Act of the Province of Ontario and any regulation pursuant thereto and any amendments or substitutes therefor as well as any similar statute applicable to the Plan and any regulation pursuant thereto adopted by the federal or any provincial government.

2.10 Beneficiary means that person last designated by the Member to receive any benefit under the Plan payable to a Beneficiary in the event of the death of the Member according to the provisions of Section I 2.07 or in the absence of an effective designation of a Beneficiary, the estate of the Member.

2.11 Board means the Board of Directors of the Company.

2.12 Company means Whiting Equipment Limited prior to December 30, I 983 and Whiting Equipment Canada Inc. on and after December 30, I 983. Where any reference in the Plan is made to any action to be taken, consent, approval or opinion to be given, discretion or decision to be exercised by the Company, "Company" means its Board of Directors or any person authorized by its Board of Directors for the purposes of the Plan.

2.13 Continuous Service means the service of a Member as defined in Section 4.0 I, used to determine eligibility for benefits.

2.14 Contributions means the Employer contributions directed to the Member's Money Purchase Account as defined in Section 5.03.

2.15 Credited Service means the service of a Member as defined in Sections 4.02 and 4.03, used to detem1ine the amount of benetits for which a Member is eligible.

2.16 Date of Determination means the date as of which a benefit is to be calculated under the Plan, as specified in each relevant section, and being one of:

(a) a Member's Retirement Date, (b) a Member's date oftennination of employment, (c) a Member's date of death, or (d) the date of amendment or discontinuance of the Plan or the date of consolidation or merger of the Plan with another plan.

2.17 Early Retirement Date means the date specified in Section 6.02.

55

2.18 Earnings means basic salary excluding overtime and bonuses, received from and detern1ined by the Company; or, where a Member is receiving benefits from the Company1s Disability plan, the Member's annual rate of remuneration immediately prior to his date of disability. In the case of a parttime Employee, earnings shall be annualized for the purposes of detennining the Member's pension. Furthern1ore, Earnings shall be limited to prescribed compensation for periods of reduced pay due to approved leaves of absences as defined pursuant to Section 8507 of the Income Tax Act.

2.19 Effective Date means May I, 1967.

2.20 Employee means a person who is in regular employment with the Company, who is remunerated on an hourly basis, who has seniority with the Company and is represented for collective bargaining purposes by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local 6728 (the Union), and who is not pm1icipating in any other employees' pension plan sponsored by the Company.

2.21 Employer means Whiting Equipment Canada Inc. and any affiliated or associated company that may be designated as a participating employer by the Company.

1 n Fund means the fund established for the purpose of the Plan as set forth herein and established in accordance with the terms and provisions of the Funding Agreement, to which all contributions to the Plan shall be made and !rom which expenses and all benefits under the Plan shall be payable.

2.23 Funding Agency means a tn1st and/or insurance company authorized to cany on such business in Canada and/or any group of individual trustees as eligible under Applicable Pension Laws designated by the Company and holding the whole or a portion of the assets of the Fund at any time pursuant to the tern1s of a Funding Agreement.

2.24 J<unding Agreement means any trust deed or agreement pertaining to the custody and investment of the Fund and executed from time to time between the Company and Funding Agency, including any insurance or annuity contracts issued by a Funding Agency and including any amendments which are from time to titnc made to any such documents.

2.25 Income Tax Act means the Income Tax Act, Statutes of Canada, 1985 and any applicable provincial Income Tax Act, as amended from time to time, together with any relevant

56

rcgulntions and administrative rules made there under from time to time.

2.26 Joint Annuitant means a person who is a Spouse, fom1er Spouse or dependent child designated as such in an election made under Section 10.

2.27 Member means an Employee who has joined the Plan in accordance with Section 3 and who continues to be entitled to benefits under the Plan. Member excludes a person by whom or in respect of whom benefits have been transferred under Section 13.01(b).

2.28 Money Purchase Account means the account established to receive contributions in the Member's nmne pursuant to Section 5.

2.29 Normal Retirement Date means the date specified in Section 6.01.

2.30 Pension Adjustment means the Pension Adjustment as detennined in accordance with Section 248(1) of the Income Tax Act, Section 8301 (6) of the Regulations of the Income Tax Act and subject to Section 9.04 of the Plan.

2.31 Plan means Whiting Equipment Canada Inc. Pension Plan for Hourly Rated Employees as set forth in this document and includes any amendments that arc from time to time made hereto.

2.32 Plan Year means the period between consecutive Plan Anniversary Dates.

2.33 Postponed Retirement Date means the elate specified in Section 6.03.

2.34 Retirement Date means the Postponed Retirement Date on which retires or is deemed to retire.

Early, Nanna! or a Member actually

2.35 Revenue Rules means the provisions of the Income Tax Act (Canada) and any applicable provincial income tax act, and any relevant regulation thereto, as they may be amended from time to time, pertammg to registered employees' pension plans or funds under the Income Tax Act (Canada) as they are applicable to the Plan.

2.36 Spouse means the person who, at the earlier of the commencement of a Member's pension and the date of the Member's death, meets one of the following eligibility requirements:

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(a) the person is the lawfl11ly wedded Spouse of the Member, provided they arc not living separate and apart; or

(b) where there is no individual under (a) above, the person who has resided in a conjugal relationship with such Member for a continuous period of three years or more, or

(c) where there is no individual under (a) or (b) above, the person who has resided in a conjugal relationship of some pem1anence with such Member and who is the natural or adoptive parent of a natural or adoptive child of the Member,

The relationship between a Member and his common-law Spouse for the purposes of the Plan commences on the day the Company receives a declaration in the fom1 prescribed by the applicable Pension Laws, declaring that a Member is a party to a common-law relationship with another person identified in the declaration and ending on the day the Member notifies the Company in writing that the declaration is revoked.

The preceding rules shall apply provided that not more than one person shall be a Spouse hereunder, In the event of more than one person having claims to be such, the deten11ination of the Company as to which person shall be the Spouse, on the basis of evidence available to it and which it considers sufficient for the purposes of such detem1ination, shall be finaL

2.37 Total and Permanent Disability means a physical or n1edical impaitnwnt that prevents a Member from engaging in employment for which the individual is reasonably suited by virtue of his education, training or expciiencc and that can reasonably be expected to continue for an indefinite period as certified, in writing, by a medical doctor licensed in Canada or where the Member resides.

A Total and Permanent Disability excludes a disability resulting !rom the Member intentionally having se!J:inflicted injuries, the Jvlember engaged in a criminal enterprise, or resulted !rom service in the armed lorces and lor which the Member receives a military pension.

2.38 YMPE means the Year's Maximum Pensionable Eamings established each year under the Canada Pension Plan as amended from time to time.

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Section 3. Membership

3.01 (a) Full Time Employees

Prior to March I, 2006, a full-time Employee shall be required to join the detlned benetlt provision of the Plan on the tlrst of the month coincident with or immediately following the attainment of seniority with the Company.

On or after March I, 2006, all full-time Employees shall be required to join the detlned contribution provision of the Plan on the tlrst of the month coincident with or immediately tollowing the attainment of seniority with the Company.

(b) Part-Time Employees

Prior to March 1, 2006, a part-time Employee shall be required to join the de tined benetlt provision of the Plan provided such Employee has attained seniority with the Company and has met one of the tollowing conditions:

(i) eamed at least 35% of the YMPE in each of the 2 consecutive calendar years immediately prior to joining the Plan, or

(ii) worked at least 700 hours tor the Company 111

each of the 2 consecutive years immediately prior to joining the Plan.

On or after March I, 2006, a part-time Employee shall be required to join the detlned contribution provision of the Plan provided such Employee has attained seniority with the Company and has met one of the above conditions.

Where the Eamings of a part-time Employee, who is a Member of the Plan, fall to less than 35% of the YMPE in any calendar year, such Employee must be permitted to continue as a Member of the Plan provided he remains Continuously Employed.

3.02 Nothing herein contained shall be deemed to give any Employee the right to be retained in the service of the Company or to interfere with the rights of the Company to discharge or lay off any Employee at any time and to

59

treat such Employee without regard to the effect which such treatment might have upon him as a Member.

3.03 Notwithstanding anything to the contrary contained in this Section, the Company may agree to the earlier participation in the Plan of any Employee of the Company in accordance with such other tenns and conditions as may be mutually agreed upon between the Company and the Employee.

3.04 Upon joining the Plan, the Employee shall complete and sign the enrolment fonn provided by the Company, and designate a Spouse and/or a Beneficiary.

3.05 While a Member remains in employment with the Company he may not discontinue his membership in the Plan nor withdraw any contributions :!Tom the Plan, except if so permitted upon discontinuance of the Plan.

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Section 4. Service

4.01 Continuous Service

(a) Continuous Service means the period of uninterrupted, regular employment of a I'vlember with the Company, beginning with the date on which the Member was last employed by the Company or any predecessor corporation or division acquired by the Company or any other participating employer and ending on the earliest of:

(i) the date that the Member ceased to be employed by the Company or any other corporation associated with the Company, (ii) the Member's death, (iii) the Member's Retirement Date, and (iv) the discontinuance of the Plan without immediate substitution of a successor employees' pension plan.

(b) The following shall not constitute interruption of employment, unless and until the Member fails to return to active employment upon expiry of the period concerned:

(i) leave of absence duly authorized by the Company, including leave on account of sickness, accident, maternity or parenting; (ii) leave of absence due to a work-related injury, as defined under the Workplace Safety and lnsurance Act, 1997, for a period of 1 year or less; (iii) layoff up to 24 consecutive months if the employee has less than 5 years of seniority, provided the Member does not elect to receive benefits in accordance with Section 13; if the employee has 5 or more years of seniority, he shall maintain recall rights and seniority for 5 years or until such time as recall rights and seniority may be lost because of a failure to return to work, provided the Member does not elect to receive benefits in accordance with Section 13; (iv) in the event of a national emergency, the Member's joining the Canadian armed forces or engaging full-time in national service work; and (v) any period of Disability during which a Member is entitled to benefits under the Employer's disability income program.

In no event shall the above periods of leave exceed a total of 5 years plus an additional 3 years in respect of periods of parenting.

4.02 Credited Service

Defined Benefit Provision

Prior to Mny 1, 1967, Credited Service of an Employee shall consist of the sum of an Employee's Continuous Service in Canada, computed to the nearest 1/IOth of a year on the bnsis of seniority with the Company.

Atier April 30, 1967, Credited Service shall be the Employee's Continuous Service in Cnnnda detcm1ined ns fOllows:

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(u) tor the period May I. 1967 to April 30, 1978- a Jet!! yeur of Credited Service for each plan year ending April 30 in \Vhich the Employee has 1700 or more compensated hours, plus

(b) for the period May I, 1978 to December 31, 1978- 7/IOth of a year of Credited Service if the Employee has 1133 or more compensated hours, plus

(c) for the period after December 31, 1978 and prior to January I, 1992 ~ a fUll year of Credited Service for each calendar year in which the Employee has 1700 or more compensated hours, plus

(d) for the period after December 31, 1991 - a full year of Credited Service for each calendar year in which the Employee has 1500 or more compensated hours.

When an Employee has fewer than the specified number of hours to obtain the full credit described above, a proportionate fraction of a year of Credited Service shall be granted to the nearest I/ lOth of a year.

For the purposes of computing Credited Service, hours of pay at premium rate shall be computed as straight time.

Defined Contribution Provision

Credited Service means years and completed months of Continuous Service, provided the Employee has satisfied the requirements to be a Member under Section 3.

4.03 Exclusions from Credited Service

Notwithstanding the provisions of Section 4.02, Credited Service shall not include:

(a) absence from work if such absence is a result of intentionally self-inflicted injuries or of injuries received during the commission of a crime, or is the result of chronic alcoholism or addiction to narcotics except when the Employee is undergoing rehabilitation in an approved centre for the treatment of alcohol or drug addiction problems;

(b) any period of Continuous Service while the Member was not an Employee;

(c) discharge for cause; or

(d) any period of active membership in any other registered pension plan of the Company or any other company associated with the Company for which a benefit is credited under such other pension plan, except as provided in the Plan.

4,04 Transfer Out

The transfer of a Member to a category of employment not eligible for participation in the Plan (i.e., salaried) or the transfer of a

62

Member to a company which is associated with the Company which docs not itself participate in the Plan, shall not constitute a termination of employment for the purposes of Section 13. In the event of such transfer, the Member's

(a) Continuous Service shall include all periods of uninterrupted, regular employment of the Member while the Member remains in the employment of the Company or an associated company; and

(b) Credited Service shall exclude those periods of his employment with the Company or an associated company while the 1VIember was not eligible to participate in the Plan.

4.05 Transfer In

In the event of the transfer of a person employed by the Company or a compnny associated with the Company to a category of employment eligible for participation in the Plan, such person's

(a) Continuous Service shall not include all periods of his regular employment with the company associated with the Company prior to becoming eligible for participation in the Plan and shall only include Continuous Service while an Employee of the Company; and

(b) Credited Service shall exclude employment with the associated company Member.

4.06 Re-Employment

ail periods of his prior to becoming a

In the event that an Employee terminates employment other than by retirement, has qualified for a deferred pension in accordance with Section 13.01(a). is subsequently re-employed with the Company. and such Employee has not nmde a transfer under Section 13.01(b), such Employee shall, in lieu of the deferred pension, have reinstated the Credited Service in effect when such deferred pension was granted.

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Section 5. Contributions

5.01 Required Contributions

Members are not permitted to make contributions to the Plan.

5.02 Voluntary Contributions

Members are not pem1itted to make voluntary contributions to the Plan.

5.03 Employer Contributions to the Defined Benefit Provision

Based upon the amounts established by the Actuary and subject to Section 17.01, the Company will contribute with respect to each Plan Year to the Fund such amounts as are necessary to provide for the benefits accruing in that Plan Year and to fund any unfunded liability and any solvency deficiency in accordance with, and within the time limits specified in, Applicable Pension Laws and Revenue Rules.

5.04 Employer Contributions to the Member's Money Purchase Account

The Employer shall contribute 4% of Eamings to each Member's Money Purchase Account

5.05 Conti·ibutions Worliplace

and Absence from the

The calculation of Eamings for the purposes of contJ;butions dlll;ng an absence from the workplace for either of the following reasons will comply with the Applicable Pension Laws describing "prescribed amount" or "prescribed compensation," whichever is appropriate.

(a) If a Member cannot work due to a work-related injury, as detined under the Workplace Safety and Insurance Act, 1997, Plan Sponsor contributions to the Plan will continue for a period of up to one year following the date of injury.

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The provision of these benefits will comply with the requirements of the Workplace Safety and Insurance Act, 1997, in addition to the Applicable Pension Laws.

(b) If a Member is taking a maternity or parental leave, Employer contributions will continue.

The provision of these benefits will comply with the requirements of the Employment Standards Act, 2000, in addition to the Applicable Pension Laws. Further, if a Member is a connected person as defined by Applicable Pension Laws, contributions during this period shall not continue.

5.06 Maximum Contribution to Member Accounts

Notwithstanding the provJswns of Section 5.03, cont1ibutions to a Member's Money Purchase Account for any calendar year shall not exceed the lesser of:

(a) the money purchase limit for the year;

(b) 18% of the Member's Earnings for the year; or

(c) any other applicable limits, as set out in the Income Tax Rules.

5.07 Repayment of Excess Employer Contributions to a Member's Money Purchase Account

If the Employer contributions to a Member's Money Purchase Account for a calendar year exceeds the limit set out in Section 5.05, the excess portion shall be returned to the Employer and the Member's Money Purchase Account shall be adjusted accordingly.

5.08 Disposition of Forfeitures

Any forfeiture of Employer contributions to Member Money Purchase Accounts that arise !Tom the termination of a Member before he has vested in his entitlement shall be repaid to the Employer or applied against any contributions required of the Employer to the Members' Money Purchase Accounts.

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Section 6. Retirement Dates

6.01 N01·mal Retirement

The Nanna] Retirement Date of a Member is the t1rst day of the month immediately following his attainment of age 65 provided he has 2 or more years of Plan membership.

6.02 Early Retirement

A Member may retire on the tlrst day of any month tollowing the Member having attained age 55 provided he has 2 or more years of Plan membership. The date of the Member's retirement in accordance with this Section shall be his Em·Jy Retirement Date.

6.03 Postponed Retirement

A Member may continue in the employ of the Company beyond Nonnal Retirement Date but, in any event, the Member shall retire or be deemed to have retired for the purposes of the Plan, not later than the end of the calendar year in which the individual attains 69 years of age, or such time as is acceptable under the Income Tax Act of Canada and its Regulations. The date of the Member's actual or deemed retirement in accordance with this Section shall be his Postponed Retirement Date.

Employer conl!ibutions shall continue to be made under the detlned conllibution provision of the Plan on behalf of a Member who continues in employment with the Employer beyond the Member's Nonnal Retirement Date provided that the Member's pension payments have not commenced and the Member elects to continue membership in the Plan.

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Section 7. Retirement Income Formula

7.01 Pension Benefit Fm·mula

Subject to Section 9, the annual amount of pension benefit of a Member as of any Date of Determination shall be equal to the sum of the defined benefit pension as outlined below and the amount that can be provided by the Member's Money Purchase Account.

The annual amount of the defined benefit pension is based on the dollar amount shown in the table below for each year and fraction thereof of Credited Service up to a maximum of 35 such years if retirement is prior to March I, 1991 and up to a maximum of 40 such years if retirement is on or after March 1, 1991:

Date of Retirement Monthly Dollar Amount

On or after January I, 1988 and before March I, 1988 On or after March I, 1988 and before March I, 1989 On or after March I, I 989 and before March I, I 990 On or after March I, I 990 and before March I, I 99 I On or after March I, I 99 I and before March I, I 992 On or after March I, I 992 and before March I, I 993 On or after March L 1993 and before March L 2000 On or a tier March I, 2000 and before March I, 200 I On or after March I. 2001 and before March I, 2002 On or after March 1, 2002

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$15.50 $16.00 $17.00 $18.50 $20.00 $21.50 $23.00 $23.50 $24.00 $24.50

Section 8. Amount of Retirement Income

8.01 Normal Retirement Pension

A Member who retires on his Nmmal Retirement Date shall receive an amount of retirement income as described in Section 7.01 calculated using the Member's Nonnal Retirement Date as his Date of Determination.

8.02 Early Retirement Pension

A Member who retires on an Early Retirement Date shall receive a retirement pension calculated in accordance with Section 7.0 I, provided that his defined benefit pension shall be detennined in accordance with either (a) or (b) below, depending on the election made by the member:

(a) For a Member who has attained the age of 63

An unreduced pension benefit calculated according to Section 7.01.

(b) For a Member who has not attained the age of63

An Actumial Equivalent pension benefit calculated according to Section 7.01 reduced ti·om age 63.

Limitations

If the Member should retire p1ior to the earliest of: (i) the date the Member would attain age 60, (ii) the date the Member would have completed 30 years of Eligible Service, and (iii) the date on which the Member's age plus years of Eligible Service would be 80,

the Actuarial Equivalent will not exceed the pension that would have been payable at the Nmmal Retirement Date and reduced by 0.25% tor each month that the Early Retirement Date precedes the earliest of the preceding 3 dates. For the purposes of subparagraphs (ii) and (iii), Eligible Service shall have the same meaning as "early retirement eligibility service" as defined in paragraph 8503(3)(c) of the Income Tax Regulations.

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8.03 Postponed Retirement Pension

A Member who retires on his Postponed Retirement Date shall receive an amount of retirement income equal to the pension benetit calculated using the Member's Postponed Retirement Date as his Date of Dete1mination, and based on Credited Service up to his Postponed Retirement Date.

8.04 Supplemental Pension For Members With A Defined Benefit Pension

Effective March I, I 992, an Employee who retires under this Section 8.02, who has 30 years or more of Credited Service, and was a Member of the defined benefit provision, shall be entitled to receive an additional supplementary monthly pension equal to $15.00 per year and traction thereof of Credited Service up to a maximum of 40 such years. Such supplementary pension shall cease when the pensioner attains age 65 or upon the earlier death of the pensioner.

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Section 9. iVlaximum Pension (Defined Benefit Provision)

9.01 In no event shall the total amount of retirement income payable at an annual rate under the Plan at the time of pension commencement, exceed the lesser of(a) and (b) where:

(a) is 2%) of the average of the three highest years' Earnings multiplied by the number of years of Credited Service (with pre-1992 service not exceeding 35 years) which is acceptable for such purposes under the Revenue Rules; and

(b) is $1,722.22 multiplied by the number of years of Credited Service that is acceptable for such purposes under the Revenue Rules.

Any past service benefits granted on or after June 8, 1990, in respect of service prior to January 1, 1990, will be limited to the maximum benefits allowed pursuant to Regulation R504(6) of the Income Tax Act.

9.02 If payment commences prior to the earliest of the date on which

(a) the Member would attain age 60, (b) the Member would have completed 30 years of Eligible Service, and (c) the sum of the !VI ember's age and Eligible Service would be 80,

the maximum pension detennined under Section 10.0 I shall be reduced by 0.25% for each month between the date payment commences and the earliest of the preceding three dates. For the purposes of subparagraphs (b) and (c), Eligible Service means the sum of all periods throughout which the .Member was employed by the Company or by a predecessor employer, as defined in Revenue Rules.

9.03 The supplementary monthly pension payable shall not exceed the bridging benefit limits imposed under the Income Tax Act. The supplementary monthly pension and the defined benefit pension payable shall not exceed, in aggregate, the limits on combined bridge benefits and lifetime beneJits imposed under the Income Tax Act.

9.04 Pension Adjustment Limits

The Pension Adjustment of a Member in a year cannot exceed the lesser of:

(a) 18?-,-;l of the Member's Earnings for the year from the Company plus the Employer contributions made to the Member Money Purchase Accounts, and (b) the Money Purchase Limit for the year (as stated in the Income Tax Act).

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Section I 0. Payment of Retirement Benefits

10.01 Normal Form of Pension

The nonnal fom1 of retirement income shall be in the fom1 of monthly instalments begiru1ing on the Member's Retirement Date and continuing thereafter during his lifetime. Upon death, payments cease.

For the defined benefit provision, if a Member has a Spouse at retirement, the nom1al tonn of retirement income shall be a surviving spouse option that will provide an annual pension for the Member during his lifetime, and continuing thereafter to the Spouse upon the Member's death. The benefit payable shall be actuarially equivalent to the pension payable to the employee and a 66 2/3% survivor benefit, guaranteed for 5 years, and payable to the Surviving Spouse after the death of the employee.

10.02 Statutory Spousal Pension

Notwithstanding Section 10.01, a Member, including a Member who terminated employtnent and who remains entitled to a deferred retirement income, who retires with a Spouse and such Spouse has not waived in prescribed form the right to a contingent pension, shall be deemed to receive any retirement income in accordance with Section 1 0.03.

10.03 Surviving Spouse Option

(a) Subject to the requirements of Section 1 0.02, a Member may elect, in lieu of the nonnal lorrn of retirement incon1e as described in Section I 0.0 I, a surviving spouse option which will provide a reduced annual pension tor the Member during his lifetime, and will provide that 60% of such reduced aruma! pension shall be continued upon death of the Member to the Spouse.

(b) The amount of the Member's reduced aruma! pension under this option shall be Actuarial Equivalent to the nonnal fom1 of pension pursuant to Section 10.01.

10.04 Election of Optional Forms (Defined Contribution Provision)

Subject to the requirements of Section 1 0.02, a Member may elect, lor the defined contribution provision only, in lieu of the lonn of retirement income as described in Sections 10.01 or 1 0.03, any optional fom1 of retirement income contained in this Section.

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Such written election in prescribed form must be tiled with tl1e Company prior to the Member's Retirement Date. The retirement income payable tmder the elected option shall be the Actuarial Equivalent of the retirement income payable under the fonn as described in Section 10.01, unless otherwise indicated. Any such option shall involve life contingencies, and any certain period shall not exceed the lesser of 15 years and the period from the Member's Retirement Date to the day before attainment of age 86. Further, no guarantee shall be pem1itted on the pension to a Joint Atmuitant except for the outstanding portion of any guaranteed tenn relating to the Member.

(a) Life Annuity- Guaranteed Term

A Member may elect to receive retirement income payable during his lifetime, with the provision that should the Member die before receiving payment for the guaranteed tem1 (in complete years only) elected, then either the remainder of the payments shall be paid to the Beneficiary, or the commuted value of the remaining payments shall be paid to the Beneficiary or the Member's estate.

(b) Life Annuity Continuing to Joint Annuitant

A Member may elect to receive retirement· income payable during the Member's lifetime, with the provision that on his death after retirement a percentage of such income shall be continued during the life at: and shall be paid to, a specified Joint Atmuitant. Such percentage, elected by the Member, shall not exceed 100% nor be less than 50%, and where the Joint Armuitant is not the Spouse, such percentage shall not exceed 66 2/3%.

For the purposes of this section, Joint Annuitant shall mean a Spouse, fom1er Spouse or Dependent where Dependent is defined as a parent, grandparent, brother, sister, child or grandchild of the Member who, at that time, is both dependent on the individual for suppm1 and either

(i) is under 19 years of age and will not attain 19 years of age in the calendar year that includes that lime, (ii) is in full-time attendance at an educational institution, or (iii) is dependent on the individual by reason of mental or physical inJ!nnity.

Benellts payable to a Dependent shall cease when he/she no longer qualilies under the survivor period pursuant to Regulation 8500( I) of the Income Tax Act.

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(c) Integration with Government Sponsored Pensions

If a Member retires prior to being eligible for unreduced pensions under the Old Age Security Act and Canada Pension Plan, the Member may elect that a greater amount of monthly pension be paid until the Member is first eligible for such govemn1ent sponsored pensions and a lesser amount of monthly pension be paid thereafter, so as to provide as nearly as possible a level total pension taking into account the adjusted pension under this Plan, and the anticipated pension to the Member under the Old Age Security Act and the Canada Pension Plan. Such benefit will be subject to the provisions of Paragraph 8503(2)(b) and Subsection 8504(5) of the Regulations.

10.05 Small Benefits

If any retirement income payn1ents under the Plan are less than 2% of the YMPE, at the Date of Detem1ination, the Company will direct the payment of the Actuarial Equivalent in a lump sum to the recipient or that payments be made less frequently than monthly, but not less frequently than annually.

10.06 Shortened Life Expectancy

Where prior to the conm1encement of retirement income a Member establishes, by written statement from a medical doctor licensed to practise under the laws of a province of Canada, that the Member has a life expectancy materially shorter than the life expectancy for the Member's age on the then current Canadian Life Tables, the Company may direct the Actuarial Equivalent be paid in a lump sum settlement in lieu of any retirement income and other benefits under the Plan.

10.07 Payment of Pensions

Retirement benefits under the Plan will be:

(a) provided by means of annuities purchased !rom a person licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an annuities business, or

(b) paid on a self-insured basis as acceptable under the Income Tax Act.

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Section 11. Vesting

11.01 Vesting Schedule (Termination of Employment)

Pension benetlts for a Member whose employment with the Company is tenninated prior to his Nonnal Retirement Date shall vest in the Employee after the Member has completed at least 2 years of Plan membership.

11.02 Vesting Schedule (Pre-Retirement Death)

Pension benetlts for a Member who dies while employed with the Company and prior to his Normal Retirement Date shall vest in the Employee after the Member has completed at least 2 years of Plan membership.

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Section 12. Death Benefits

12.01 Death Benefits Prior to Normal Retirement Date

(a) If the death of a Member occurs prior to his Nonnal Retirement Date, a lump sum benefit is payable equal to:

Prior to Januarv I, 1987:

No death benetit is payable.

On or after January 1. 1987:

(i) Non vested Members

If a Member dies while in active service of the Employer and is not vested at his date of death, no death benefit is payable.

(ii) Vested Members

For a Member who has a vested pension benefit payable at Nom1al Retirement Date, the Member's Beneficiary is entitled to a death benefit equal to the Actuarial Equivalent of the dellned benellt pension benefit plus the value of the Member's Money Purchase Account.

(b) The lump sum in paragraphs 12.0J(a) shall be payable, in order of priority, to

(i) the Member's Spouse, unless waived in the prescribed form in accordance with Applicable Pension Laws, or

(ii) the Member's Beneficiary.

If there is any doubt as to the identity of the persons in paragraphs 12.01(b)(i) or (ii) or as to whether such person is the person legally entitled to receive any death benellt hereunder, payment may be withheld by the Company for a reasonable period of time to pen11it an investigation to be made. Any claimant shall on demand be obliged to produce such proof of identity as may be deemed reasonable in the circumstances by the Company.

(c) The lump sum in paragraph 11.0l(a) shall be paid in one of the following forms:

(i) Jump sum cash payment, or

(ii) transferred to a registered retirement savings plan in the name of the Member's Spouse, or

75

(iii) used to purchase an immediate or defen-ce! life annuity for the Member's Spouse.

12.02 Death Benefits After Normal Retirement Date and Before Postponed Retirement Date

(a) If the death of a Member occurs after Nanna! Retirement Date, but before the Member's Postponed Retirement Date, for the purpose of detennining any death benefit payable hereunder, the Member shall be deemed to have retired on the first day of the month coincident with or immediately preceding the date of the Member's death, and the benefit will be based on the fom1 as described in Section 1 0.01.

(b) In lieu of the benetit specilied in paragraph (a), there shall be paid to the Member's Spouse or Beneliciary, as applicable, the Actuarial Equivalent value as specified in Section 12.01 with the reference to Nanna! Retirement Date changed to Postponed Retirement Date.

12.03 Death Benefits for Terminated Employees

(a) If a Member ceases to accrue Continuous Service and has an entitlement to retirement incmne benefits in accordance with Section 13, and if the death of such Member occurs prior to the commencement of such retirement income, there shall be paid a death benefit detem1ined in accordance with Section 12.0 I.

(b) The payment of bene/it under this Section 12.03 shall serve as a full discharge of all obligations of the Plan.

12.04 Death Benefits After Retirement Date

If the death of a Member occurs after his Retirement Date there shall be paid to the Beneficiary any benefits due in accordance with the retirement income option elected, or deemed to have been elected, by the Member under Section !0. In the case of a Member who did not elect, and was not deemed to have elected an optional form of retirement income, payment shall be made to the Member's Beneficiary in accordance with Section I 0.01.

12.05 Commutation of Death Benefits

(a) The amount of retirement income payable to a Member's Beneficiary under a guarantee option may, if so requested by the Beneficiary, be paid in a lump sum that is the Actuarial Equivalent of the remaining retirement income payments under the guarantee option.

76

(b) The amount of any retirement income payable to a Mcmberrs estate under a guarantee option shall be paid in a Jump sum that is the Actuarial Equivalent of the remaining income payments under the guarantee option.

12.06 Alternative Forms of Payment

A Member may elect, or atter death in default of such election the Spouse may elect, that the Actumial Equivalent of any lump sum amounts payable under Section 12.01, 12.02, 12.03 or 12.04 to such Spouse be applied to provide an immediate annuity to the Spouse, without a guarantee period or with a guarantee period of complete years not exceeding the lesser of 15 years and the number of years between the date of the Member's death and the day before the Spouse would attain age 86.

12.07 Beneficiary Designation

A Member shall designate in writing a Beneficiary to receive any benefits that are payable under the Plan to a Beneficiary upon the death of such Member and may change such designation from time to time. Such designation or change must be in accordance with any law applicable to the Member and shall be in such fonn and executed in such manner as the Company may, from time to time, determine. In the absence of an effective designation of a Beneficiary, the Company shall instruct the Funding Agency to make payment of any death benefits under the Plan to the estate of the Member and any such payment shall completely discharge all liability with respect to the amount paid.

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Section 13. Termination of Employment

13.01 Termination Benefits

A Member whose employment with the Company is tem1inated for any reason other than death or retirement, shall elect to receive benefits as follows:

(a) retirement income conm1encing at Nom1al Retirement Date, equal to the vested portion of the amount of retirement income computed in accordance with Section 8.0 I using the Member's date of tem1ination of employment as his Date of Determination. Such retirement income shall be payable in accordance with Section 10, or

(b) in lieu of the deferred retirement income under paragraph (a) hereof, the Member may elect to have the lLnnp sum Actuarial Equivalent of the vested portion of such retirement pension transferred to:

(i) another registered retirement savings plan or locked-in retirement product as prescribed by the Applicable Pension Laws, or

(ii) another employer's registered pension plan, if that plan so pennits, subject to the condition that the fi.mds shall be locked-in as described in Section 13.02 and Applicable Pension Laws, or

(iii) another insurance company to purchase an immediate or defened pension.

If the lump sum Actuarial Equivalent of a Member's pension exceeds such maximum amount as may be prescribed under the Income Tax Act, the amount transferred in accordance with this Section will not exceed such prescribed maximum amount and the excess of the lump sum Actuarial Equivalent over the amount transferred will be paid to the Member in cash.

13.02 Locking-In Requirements

A Member who has completed 2 years of Plan membership shall be subject to 1 OO'Yo locking-in.

13.03 A Member whose employment with the Company is ten11inated and who is entitled to receive a deferred retirement income comn1encing at his Nom1al Retirement Date may elect to receive an mnount of pension that is the Actuarial Equivalent on any Early Retirement Date. Such actuarial equivalent reduction t:1ctor shall not be less than the minimum reduction L1etor contained in Regulation 8503(3)(c).

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Section 14. Contributions and Funding

14.01 Permissible Contributions

The following shall be considered pennissible contributions to the Plan:

(a) Employer Contributions made in accordance with Section 5 of the Plan. (b) Company contributions based on the Actuary's recommendations as approved by Canada Revenue Agency. (c) Transfers from other registered plans in accordance with the Income Tax Act.

14.02 Company Contributions

For the defined benefit provision, based upon the amounts established by the Actuary and subject to Section 14.01, the Company will contribute with respect to each Plan Year to the Fund such amounts as are necessary to provide for the benefits accruing in that Plan Year and to fund any unfunded liability and any solvency deficiency in accordance with, and within the time limits specified in, Applicable Pension Laws and Revenue Rules.

For the defined contribution provJsJon, the Company will contribute such amounts as specified in Section 5.04.

14.03 Actuarial Surplus

At the discretion of the Company and subject to the provisions of Applicable Pension Laws, any surplus detem1ined by Actuarial valuation, or a portion thereof~ may be used to reduce the contributions of the Company otherwise required under the Plan or may, to the extent allowed and subject to any conditions or approval procedures under the Applicable Pension Laws and Revenue Rules be retumed to the Company.

14.04 Fund

(a) The retirement income and other benefits provided under the Plan shall be financed by a Fund established for the purposes of the Plan under which all contributions and investment income are held to pay such retirement income, other benelits and expenses.

(b) The Company shall be responsible tor the selection of a Funding Agency. The Fund or a portion thereof shall be maintained and administered by the Funding Agency in accordance with the tenns of a Funding Agreement entered into between the Company and the Funding Agency. The

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Company and the Funding Agency may agree to ame-nd the form and the ten11s of the Funding Agreement at any time. The Company may further appoint an organization licensed in Canada to provide investment management services to manage the investment of any portion of the Fund. The Company may replace any Fnnding Agency or investment manager at any time, in accordance with the tem1s of any applicable agreement or contract. Investment decisions made by the Company must be in am1's length entities as reqnired by the Income Tax Act and its Regulations.

(c) Subject to Applicable Pension Laws, the retirement income and other benefits payable under the Plan shall only be paid to the extent that they are provided for by the assets held under the Fund, and no liability or obligation to make any contributions thereto or otherwise shall be imposed upon the Company other than in accordance with Section 14.02.

(d) The investment of the Fund shall be made m accordance with Applicable Pension Laws and Revenue Rules.

(e) Fees of the Funding Agency, fees of an investment manager, investment brokerage, transfer taxes and similar costs arising as a result of the making of investments, sale of assets or realization of investment yield, and the expenses reasonably incurred or compensation properly paid in the course of the administration of the Plan shall, at the option of the Company, be paid directly by the Company or from the Fund.

14.05 Claims on the Fund

No Member or any person claiming through him, by virtue of any provision of the Plan, shall have any right to, or any interest in, any part of the Fund except to the extent provided !rom time to time under the Plan and the Funding Agreement, and any Member or other person having any claim through him shall have recourse solely to the Fund for payment of any benefits hereunder. Under no circumstances shall any liability attach to the Company, or any director, o!Ticer or employee of the Company for payment of any benellts or claims hereunder.

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Section 15. Permissible Distributions/Protection of Benelits

15.01 Pet·missible Distributions shall include only the following:

(a) payment of benefits under the te1ms of the Plan (i.e. retirement, death and withdrawal),

(b) transfers of lump sums to another Registered Pension Plan, another registered retirement savings plan or locked-in retirement product as prescribed by the Applicable Pension Laws,

(c) transfers of funds between plans where there is a reciprocal agreement,

(d) a retum of Employer Contributions to the Member's Money Purchase Account or Company contributions in order to avoid revocation of Plan registration (i.e. where a Member's Pension Adjustment would exceed the limits),

(e) refund of surplus, and

(f) payment of reasonable administrative, investment and similar expenses incurred in connection with the Plan.

15.02 Protection of Benefits

The retirement income and other benefits under the Plan shall not be capable of being charged, anticipated or given as secmity nor are they capable of assignment, alienation, smTender or commutation, and do not confer upon any other Member, personal representative or dependent, or any other person, any right or interest in the retirement income and other benefits or rights of reii.md capable of being assigned, surrendered, commuted or otherwise alienated, except as provided for:

(a) commutation of small benefits under Section I 0.05 or pensions to disabled Members under Section 10.06;

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(b) commutation of death benefits under Section 11.05; and

(c) payments for incompetents or mmors under Section 15.04.

15.03 Notwithstanding Section 15.01, when the legal marriage or common-law relationship of a Member or fonner Member and such person's Spouse is tenninated pursuant to a written agreement, the pension earned during the tem1 of the marriage or common-law relationship shall be split in the manner specified in and in the fonn provided under Applicable Pension Laws, or in accordance with any judicial decision which may take precedence, provided that the total value ofbenetlts with respect to such Member shall not exceed the Actuarial Equivalent of the benefits prior to such splitting.

15.04 If the Company receives evidence which m its absolute discretion is satisfactory to it that

(a) a person entitled to receive any payment provided for in the Plan is physically or mentally incompetent to receive such payment and to give a valid release therefore,

(b) another person or an institution IS then maintaining or has custody of such payee, and

(c) no guardian, committee or other representative of the estate of such payee shall have been duly appointed,

then the Company may direct such payment to such other person or institution, and such payment shall be a valid and complete discharge to the Plan for the payment.

In the absence of the appointment of a legal guardian, any benefit payable to a minor may be paid to such adult or adults as have, in the absolute discretion of the Company, assumed the custody and principal financial support of such minor.

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Section 16. Amendment or Discontinuance

16.01 Amendment

(a) The Company expects to continue the Plan indefinitely, but nevertheless reserves the right to

(i) amend the Plan, (ii) tem1inate the Plan, (iii) merge or consolidate the Plan with any other pension plan adopted by the Board, or (iv) transfer any assets or liabilities of the Plan to any other pension plan adopted by the Board,

provided that no such action shall adversely affect any right with respect to benetits that have accrued immediately prior to the time such action is taken, except as provided in Section 16.02. The accrued benefits will be computed using the applicable Date of Dete1mination, the earlier of the date the Member ceases to accrue Continuous Service and the date of the amendment, tennination, merger or consolidation of the Plan, as applicable.

(b) Any amendment of the Plan shall be made by

(i) the adoption of a resolution by the Board, or (ii) the execution of a certificate of amendment by an officer of the Company authorized to amend the Plan.

16.02 Discontinuance

(a) In the event the Plan shall be discontinued at any time either in whole, or in part with respect to a specified group of Members only, the assets of the Fund (or the interest therein of Members affected by a partial discontinuance) shall be allocated to provide to the extent of said assets subject to Applicable Pension Laws, the retirement income and other benefits then accrued under the Plan. The accrued benefits will be computed using the date the Member ceases to accrue Continuous Service as the applicable Date of Dete1mination. Such allocation shall be made in accordance with an allocation schedule then established by the Company in consultation with the Actuary and tiled with and approved by the appropriate authorities in accordance with Applicable Pension Laws.

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(b) The provisions for the accrued retirement income and other benefits described in paragraph 16.02(a) may be in the fonn of cash or annuity contracts, or a combination thereof; at the discretion of the Company and as pem1itted under Applicable Pension Laws and Revenue Rules.

(c) Upon discontinuance of the Plan, in whole or in part, any assets of the Fund (or the appropriate portion of the Fund in the case of a partial discontinuance) remaining at1er full provision has been made for the accrued retirement income and other benefits as described in paragraph 16.02(a) shall be allocated in compliance with the Act and the Income Tax Act in all respects and as detem1ined in a meeting of the Company and the Union.

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Section 17. Disclosure

17.01 Plan Explanation

Within the 60 day period prior to the date an Employee becomes eligible for membership in the Plan, the Company shall provide to such Employee a written description of the Plan. Such description shall explain the pertinent terms and conditions of the Plan and amendments thereto as applicable to the Employee, and shall outline the rights and obligations of the Employee with reference to the benefits available under the Plan.

Unless such notification is dispensed with by the jurisdiction having authority under Applicable Pension Laws, then not later than 60 days after registration of any amendment to the Plan, the Company shall provide a similar explanation of the amendment to each Employee affected by the amendmenl.

17.02 Inspection

The Company shall permit a Member, a Member's Spouse or the 1v1embcr's authorized agent to inspect, or make extract from, the Plan text and any other related documents required to be made available under Applicable Pension Laws, at any reasonable time at such offices of the Company including its principal office in each province as designated by the Company.

17.03 Benelits Statement

(a) \Vithin six months after the end of each Plan Year, the Company shall provide to each Member a written statement describing the benefits the Member hns earned to date and such other informntion as required under Applicnble Pension Laws.

(b) Upon cessation of employment of a Member or upon termination of the Ivlember's active membership in the Plan, the Company shall provide to the Member (or other person entitled to benefit in the event of the Member's death) within 30 days a written statement of the benefits and options to which the Member is entitled.

17.04 Other Information

The Company shall provide such other information regarding the Plan, statistical or otherwise, as is required under Applicable Pension Laws.

17.05 Limitation

Such explanation, statement or other infommtion provided shall have no cfTecl on the rights or obligation of any person under the Plan, and shall not be referred to in interpreting or giving effect to the provisions of the Plan. The Company shall not be liable for any loss or damage claimed by any person to have been caused by any error or omission in such explanation, statement or other inrormation.

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Section 18. Administration

18.01 The Company is the Administrator of the Plan for all purposes including without limitation, for purpose of Applicable Pension Laws. The Plan and the Fund shall be administered by the Administrator in accordance with the Plan, the Funding Agreement, written statement of investment policies and procedures for the Plan, the articles and bylaws of the Company, Applicable Pension Laws and Revenue Rules. The Administrator may appoint any person or corporation to keep administrative records for the Plan, and may from time to time delegate for the purpose such authority as it may deem necessary and advisable.

18.02 The Administrator may from time to time direct that appropriate records be maintained and may establish rules for the administration of the Plan. The Administrator shall have the exclusive right to inteq1ret the Plan provisions and to decide any matters arising hereunder in the administration and operation of the Plan. All interpretations and decisions shall be applied as nearly as may be possible in a unifom1 manner to all Members similarly situated.

18.03 The Company shall indenmify and save hannless any employee or director of the Company who is involved in the administration of the Plan from the effects and consequences of his acts, omissions and conduct in his fonnal capacity to the extent pem1itted by law except for his own willful and intentional malfeasance or misconduct. No part of the Fund shall be used for indemnification payments.

18.04 The Administrator and any person or corporation appointed by the Company in accordance with Section 18.01 shall be entitled to rely conclusively upon all tables, opinions and reports which shall be furnished by any Actuary, accountant, counsel or other professional person who shall be employed or engaged for such purposes.

18.05 All benefits under the Plan shall be approved by the Administrator, and payment thereof shall be made only upon application therefor in the mmmer prescribed by the Adtninistrator and upon submission of such relevant supporting evidence as the Administrator may require. Any person receiving or claiming any benefit under the Plan shall at any and all times, on demand of the Administrator, furnish to the Administrator satisfactory evidence to demonstrate entitlement.

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agreement - ontario · 2017. 11. 16. · agreement between whiting equipment canada inc. p.o.box217...

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