COLLECTIVE AGREEMENT

BE1WEEN:

Tender Choice Foods Inc. ("the Employer")

~and-

Labourers' International Union of North America, Local837 ("the Union")

12.01.2012- 11.30.2017

ARTICLE 1 - RECOGNITION AND JURISDICfiON

1.01 This agreement shall cover all employees of the Employer employed at Tender Choice Foods Inc., in Burlington, Ontario at 4480 Paletta Court, save and except foremen, and persons above the rank of foremen, laboratory, office and clerical staff and outsourced labour. No outsourced labour person shall perform any bargaining unit work while a Union employee is on layoff.

1.02 The Employer recognizes L.I.U.N.A. Local837 as the exclusive bargaining agent for all Employees, as defined in Article 1.01.

ARTICLE 2 - UNION SECURI1Y

2.01 All employees of the Employer who are hired before or after the effective date of this agreement shall be required to become and remain members of L.I.U.N.A. Local837 as a condition of employment after the probationary period.

2.02 For the purpose of this agreement membership shall be deemed to mean the payment of an initiation fee and payment of dues as specified in the agreement.

2.03 The Employer shall deduct from its employees' wages the amount of Union dues set by the Union, as notified in writing by the Union.

2.04 Within fifteen (15) days following the end of each month, the deduction for Union dues such as stated in section 2.03, will be remitted by the Employer to the Secretary­Treasurer. Such remittance must be accompanied by the list prepared by the Employer's outside payroll company which shall provide a list of employees name by department, ID number, the current deductions and the social insurance numbers only, and updates to include addresses and phone number changes as provided by the employee. The Employer shall provide to the Union one time the phone number, addresses and corresponding social insurance numbers for all employees. Any and all updates v.ith regard to additions or deletions of employees will be provided with the monthly Union dues remittance.

2.05 The Union undertakes to indemnify the Employer for any claim, loss or liability ensuing from the above provided deductions.

2.06 All Union postings or notices will be allowed to be posted on the Union Bulletin Boards, after such notice is approved by the Employer and only on the Union two (2) Bulletin Boards at the Plant and no where else at or on the walls of the Plant.

2.07 At the completion of the probationary period, the Employer shall give each employee a copy of the current Collective Agreement and a brochure on group insurance. The Union will provide photocopies of the Collective Agreement to the Employer on an as­needed basis. The Union and the Employer will endeavour to provide translated copies

of the Collective Agreement to accommodate any request for such.

ARTICLE 3- MANAGEMENT RIGHTS

3.01 The Union acknowledges and agrees, that the Employer shall continue to reserve all rights, power and authority to manage its plant and business. The rights of the Employer shall include but not limited to, maintaining order, discipline and efficiency. To hire, direct, discharge, classify, transfer, lay-off and recall employees of just cause. To determine the number of employees required including the schedule of overtime and schedule of vacations.

ARTICLE 4 - NO STRIKES OR WCK-OliT

4.01 The Union agrees that there will be no strikes and the Employer agrees that there will be no lock-outs during the term of this Agreement.

ARTICLE 5- SHOP STEWARDS AND REPRESENTATIVES

5.01 The Union may appoint shop stewards. The Union Stewards will have a minimum of twelve months seniority in the bargaining unit, at which time the Union shall submit to the Employer in writing, the names of the shop stewards. The maximum number of shop stewards appointed will be three (3). The Union recognizes that the steward is an employee of the Employer and therefore will not leave his or her work during working hours unless it is mutually agreed upon by the Employer and the Union. Further in the event the bargaining unit is in excess of 251 employees, at that time, the maximum number of shop stewards appointed shall increase to four (4). Each steward will be provided with a specific coloured hardhat to be identified as a Union Representative and will be required to be at any disciplinary meeting.

5.02 The Business Agent for the Union shall have access to the plant during working hours but in no case shall his visits interlere with the progress of the work. When visiting the plant, the supervisor or administrator of the Employer must first be advised twenty four hours prior to the visit by the Business Agent.

5.03 The Union acknowledges that the Stewards have regular duties to perlorm on behalf of the Company. The steward shall, with the consent of the Plant Manager (or designate), be permitted to leave his/her regular duties, while remaining on premises, for a reasonable length of time to be determined by the Plant Manager (or designate) without loss of pay, to function as a steward as provided in this Collective Agreement for the prompt handling of necessary Union business with management. Such consent from the Plant Manager shall not be unreasonably withheld. When returning to regular duties the steward will first report back to hisjher supervisor.

5.04 Any on-site steward shall be given the opportunity to meet with non-probationary employees during his/her scheduled unpaid break at a designated unmarked office for use

2

of the Union arranged by the Company for the purpose of informing such employees of the contents of the Collective Agreement.

s.os The bargaining unit employees have the right, at any time outside normal working hours or, if during working hours, at the Company's sole discretion, to have the assistance of a Business Representative of the Union when dealing with the Company. Consequently, if a Business Representative needs to meet with a steward or an employee he will first notify the Company so a suitable place and time can be arranged for the meeting. It is understood by the Union that the foregoing rights may have to be limited in accordance with the security requirements of the building.

a) Where an employee is required to attend a meeting in which a written warning, suspension or discharge is to be given, the Company will arrange to have a steward present at the meeting. If no steward is available the disciplinary action will be taken and the Company will provide a copy of the discipline to the Chief Steward upon his/her return. The Chief Steward will then have the opportunity to meet with the disciplined employee at a time and place outlined in Article 5.04

ARTICLE 6 - GRIEVANCE PROCEDURE

Step I 6.01 Should a difference arise between the Employer and any ofthe employees as to the

interpretation of the Agreement, the employee will discuss the problem with his/her supervisor.

Step II 6.02 If an agreement is not reached amicably within five (5) business days, a grievance by

the employee will be given to the Employer via a Business Agent or Union Representative.

6.03 If an agreement between the Union Representative and the Employer is not reached amicably within ten (to) Business days then the matter shall be referred to and settled by arbitration in accordance with the provision of the Ontario Labour Relations Act.

6.04 Any decision of the parties at any step in the grievance procedure, as well as the Arbitrator's decision, will be final and binding upon the Employer, the Union and the Employee(s) involved.

6.05 When several similar of the same individual grievances are raised, they may be submitted through a common document and may be treated collectively, in order to simplify.

ARTICLE 7- PROBATIONARY PERIOD

7.01 The first one hundred and twenty (120) calendar days after the hiring of an employee will be considered a probationary period during which time the probationary employee

3

may be discharged at the sole discretion of the Employer. The Employer will remit union dues for any hours worked by a probationary employee.

ARTICLE 8- PUBLIC HOLIDAYS

8.01 The Employer agrees to the following public holidays subject to the terms of the Employment Standards Act:

New Year's Day Labour Day Family Day

Good Friday Victoria Day Canada Day Thanksgiving Day Christmas Day

Civic Holiday December 26th

The Employer agrees to post notice informing all employees as to when the Public Holiday(s) shall be applied.

8.02 In the event an employee is required to work on a Public Holiday, he/she shall receive one and one-half(1.5) times his/her regular rate of pay in addition to the public holiday pay. At the Employer's option, the Employer may substitute an alternate day off of work that would ordinarily be a working day in lieu of working the Public Holiday, at regular rates.

8.03 In the event a Public Holiday falls on other than a regular working day, the Employer will provide the Union and the employees at least three (3) days notice that the public holiday will be taken on a regular working day.

ARTICLE 9 -ANNUAL VACATION

9.01 The reference year shall be a period of consecutive months during which the employee shall progressively acquire a right to a vacation.

9.02. a) All employees governed by this agreement shall be entitled to paid vacation based on their gross earning for the reference year, as provided in article 9.01.

Entitlement Vacation Indemnity (at end of reference year)

i) o- 5 years 10 days vacation 4% of earnings seiVice with the Employer

ii) six (6) years and up to ten (10) 15 days vacation 6% of earnings service with the Employer

iii) eleven (n) years and over 17.5 days vacation 7% of earnings service with the Employer

9.03 The rate of vacation pay of wages in the current calendar year as explained in article 9.01 which will be paid semi-annually in the months of June and December by the

4

Employer in accordance with the Employer's payroll schedule

9.04 a) Employees must request in writing their vacation by notifying the Employer at least seven (7) weeks prior to the date of vacation. The Employer will notify the employee in writing within two (2) weeks of receiving the request. To avoid a shortage of qualified employees, the Employer reserves the right to determine the number of employees who can leave the plant simultaneously.

b) The vacation may be altered by mutual agreement between the Employer and the employee.

ARTICLE to- HOURS OF WORK AND OVERTIME

10.01 For overtime calculation purposes, the standard work week is forty four (44) hours.

10.02 Subject to the regulations, the Union and the Employer agree in averaging and that the employee hours of work may be averaged over a period of two (2) weeks for the purpose of determining the employee's entitlement, if any, to overtime pay in excess of eighty-eight (88) hours in such two (2) week period. In the event there is overtime, such overtime shall be paid at the rate of one and one-half (1.5) times the Employee's regular pay.

10.03 Employees working a minimum of eight (8) hours per day, shall receive a minimum of a one-half(0.5) hour unpaid for lunch and one thirty (30) minute paid break at such times as designated by the Employer.

10.04 The Employer shall have the right to schedule overtime when it is required to maintain consistency and efficiency. The Employer shall have the right to schedule overtime for an entire crew, however, the Employer shall allow a reasonable request from an employee to be excused from overtime on a particular occasion. The request shall be made well in advance of the scheduled overtime.

10.05 An employee required to work on a Sunday shall be paid at the rate of one and one-half (1.5) times the employee's regular pay.

10.06 When an employee who reports to work in the normal course of his/her employment and does not have work available, or an employee who works less than four (4) consecutive hours is entitled to an indemnity equal to four (4) hours of his/her actual rate.

10.07 An employee who is called back to work after completing his/her regularly scheduled hours and after leaving the Plant, shall whenever there is a break between the employee's regularly scheduled hours and the work the employee is called in to do, be paid at least three hours at the employee's regular hourly rate or the total hours worked.

10.08 The Employer will not change an employee's shift unless such employee has worked for

5

a period of five (5) days in that shift.

10.09 When overtime is assigned by the employer, it shall be on a voluntary rotating seniority basis Oongest employed to least employed) to departmental employees qualified to perform the work. For purposes of overtime work distribution, the refusal of an employee to work overtime shall be considered as overtime worked performed but not paid.

10.10 Overtime shall be on a voluntary seniority basis by the employee by department and qualification, and where there are insufficient volunteers, the employer shall have the right to assign by reverse seniority.

ARTICLE 11- TRAINING

11.01 At the discretion ofthe Employer the employee shall be required to take training program to increase and promote good working conditions and efficiency.

11.02 (a) The Employer shall assist the injured worker in completing the W.S.I.B. form.

(b) Upon his/her return to work, the employee shall resume his/her employment, if it still exists, or another employment according to his/her seniority rights.

11.03 Any employee who operates a forklift must be a certified forklift operator.

11.04 Probationary employees will be properly trained within his or her designated classification.

ARTICLE 12- BENEFITS

12.01 The Employer, will provide the benefit plan in existence on December 1, 2001. The premium costs will be shared on the ratio as follows:

a) December 1, 2012, 6o%paid by the Employer and 40% paid by the employee

12.02 Participation in the benefit plan is voluntary on the part of the employee.

12.03 Upon request by the employee who has enrolled in the benefit plan, the Employer will provide a copy of the booklet describing the benefit coverage.

12.04 The Benefit Plan will cover 100% of health & welfare insurance benefits. A Pay Direct Drug Card shall be introduced for all members enrolled in the Benefit Plan.

ARTICLE 13- BEREAVEMENT/LEAVES OF ABSENCE

6

13.01 In the event of the death of a member of the immediate family of a Union employee, the Employer will provide the employee with up to five (5) working days of non paid leave of absence including the day of the funeral. Immediate family mem hers include: spouse, parents, grandparents, children, grandchildren, brothers, sisters, mother- in­law, father-in-law.

13.02 Effective December 1, 2012, the Employer shall provide two (2) days paid leave of absence in the event of the death of an employee's spouse, parents, children, brothers, sisters and grandparents,. This two (2) days paid leave is part of the five (5) working days non paid leave from Article 13.01.

ARTICLE 14 - LEAVE OF ABSENCE

14.01 The Employer shall provide a maximum of eight (8) weeks of non paid leave of absence to an employee upon written notice of at least eight (8) weeks prior to the leave requested by the employee. (The notice period may be less than eight (8) weeks if mutually agreed upon.) This eight week period shall be provided by the Employer to the employee one time every two years. To avoid the shortage of qualified employees, the Employer reserves the right to determine the number of employees that can leave the plant simultaneously.

14.02 a) In the event that leave is longer than eight (8) weeks, at the Employer's discretion, the employee shall lose his or her seniority and the Employer is not obligated to provide a job and/or position to such employee. In the event the employee is accepted back by the Employer, the employee will be considered a new hire and shall qualify under the classification designated by the Employer at the rate of that classification at that time.

b) This leave of absence shall only apply to those employees who have a minimum of one year of service with the Employer.

ARTICLE 15- WAGES

15.01 Employees shall be paid at bi-weekly.

15.02 The Employer shall remit to the employee, at the same time as his/her wages, pay slip with the following information: i) the Employer's name; ii) the employee's last name and given name; iii) the payment date and its corresponding work period; iv) the number of hours paid at the applicable rate during the hours ofthe regular

workweek; v) the number of overtime hours paid, at the applicable rate, if any; vi) the nature and amount of premiums, indemnities or allowances issues; vii) the wage rate; viii) the amount of gross wages;

7

ix) the nature and amount of deductions made; x) the net amount of pay after deductions.

15.03 For the term of this agreement, the Employer shall pay the wages provided in Appendix "A"

15.04 The Employer may deduct from wages only when compelled by law, a court order, a collective agreement, or when authorized by a document signed by the employee.

15.05 Except where seniority is being applied, an employee temporarily transferred to another task or department at the Employer's request shall be paid at their regular rate of his/her classification unless it is a higher rate and then, said employee will be paid the higher rate.

15.06 Any employee assigned temporarily to a lower classification and/or task will maintain his or her regular rate of pay.

15.07 Save as specifically provided herein, when the Employer becomes bound by the terms and conditions of this Agreement, no employee of the Employer shall suffer a reduction of pay, vacation entitlement or pay, benefits, or any other form of compensation by reason of the execution of this Agreement. Also, said employees that fall under this category shall be entitled to the same percentage increase in wages, benefits and vacation pay as agreed to in this agreement.

ARTICLE 16 - PROTECfiVE CLOTHING

16.01 The Employer agrees to provide at its own expense to those employees the following clothing as required: Hard-hat, hair net, rubber gloves and White Coat. For the freezer department the Employer shall provide an insulated coat and insulated pant at the request of the employee. The Employee shall be responsible for the cost ofthe replacement iflost, stolen or damaged through abuse. The Employer agrees to provide at its expense a Steel glove to the employee. The employee will be responsible for the cost of replacement when it is lost, stolen or damaged through abuse. For Employees in the Sanitation Department, the Employer shall pay $150.00 per year for the purchase of rubber clothing to be paid out the first pay period of December of each year. The Employee must be employed a minimum of eight (8) months. If the employee leaves the Employer within four (4) months of receiving the allowance, the employee shall refund the allowance and such refund to the Employer may be deducted directly from the employee's pay.

ARTICLE 17- SENIORITY

17.01 Seniority as referred to in this Agreement shall mean length of service in the bargaining unit, from the latest date of hire, and shall be applied on a bargaining unit-wide basis.

17.02 An employee shall lose hisfher seniority, and be deemed to be terminated, in the following

8

circumstances: a) if he or she voluntarily quits his/her employment with the employer:

b) if he or she is discharged and is not reinstated through the grievance or arbitration procedures;

c) if he or she is off work because of layoff or illness for twelve (12) months or the length of the employees seniority, whichever is shorter.

d) fails to notify the Employer within two (2) working days that he or she will report to work after being notified by the Employer to report for work or subsequently fails to report for work within five (5) working days after being notified by the Employer by registered mail to report for work following layoff unless a reason satisfactory to the Employer is given.

e) he/she uses a leave of absence for a purpose other than that for which it was granted or is employed elsewhere during a leave of absence;

0 he/she is absent from work for two (2) working days without notifying the Employer during the absence unless a reason for the absence is satisfactory to the Employer;

g) no outsourced employee shall be working while a seniority employee is laid off provided that the seniority employee has, in the opinion of the Employer, the skill and ability to perform the work required and is available.

h) he/she makes a false statement on his/her application for employment.

i) he/she commits theft or is in possession and/or under the influence of alcohol and/or non-prescription drugs while on the Employer's premises.

17.03 An employee shall accumulate seniority under any of the following conditions: a) when actually at work for the Employer;

b) when absent on vacation with pay, on plant holidays, approved leave of absence; in accordance with Article 14.

c) during any period when he or she is prevented from performing his or her work for the employer by reason of illness, accident and/ or injury arising out of and in the course of his or her employment for the Employer and for which he or she is receiving compensation under the provisions of the Workers' Safety Insurance Board for a period of up to twelve (12) months.

17.04 An employee who does not qualify to accumulate seniority under Article 17.03 shall maintain his or her existing seniority, unless and until he or she loses same pursuant to Article 17.02.

9

17.05 Employees shall be required to notify the Employer of any change of address or telephone number. The Employer shall be entitled to rely upon the last address and telephone number furnished to it by an employee for all purposes.

17.06 The Seniority list shall be revised and forwarded to the Union by January 3151 •

17.07 a)

b)

c)

In the event that a lay off occurs within a classification in a department, the least senior employee in the classification shall be subject to lay off. An employee who is subject to lay off may only exercise his/her plant wide seniority to displace a less senior employee in a lower classification in that department provided always that the senior employee has, in the opinion of the Employer, the skill and ability to perform the work required.

Any employee who is displaced from the department pursuant to paragraph (a) may only exercise his/her plant wide seniority to displace the least senior employee in a lower classification in another department, provided, in the opinion of the Employer, he/she has the skill and ability to perform the work required.

Employees who still retain seniority in accordance with this agreement, shall be recalled from lay-off in order of seniority provided, in the opinion of the Employer, the senior employee has the skill and ability to perform the work required.

17.08 In the event that an employee covered by this Agreement should be promoted to a supervisory or confidential position beyond the scope of the Agreement, as defined in Article 1- Recognition, he or she shall retain his or her accumulated seniority for a one (1) year period from the date of appointment or length of seniority, whichever is shorter. Follo\\ing the expiry of the preceding limits the employee's name shall be considered deleted from the seniority list.

ARTICLE 18 - INDUSTRIAL RELATIONS COMMITTEE

18.01 The Industrial Relations Joint Committee will be appointed with the following membership i) Maximum of two (2) members appointed by the Employer ii) Maximum of two (2) members appointed by the Union.

18.02 The Task of this Committee shall be to: (a) Develop good relations between the Union and the Employer by examining

problems of common interest which concern all or part of the employees who are part of the bargaining unit.

(b) Make recommendations to the parties.

18.03 The Committee provided for in this article shall meet one (1) time every two (2) months for a period of no longer than sixty (6o) minutes or other length of time by mutual agreement at a date determined as mutually agreed upon between the specific representative appointed for the purpose by the parties.

10

(

ARTICLE 19- HEALTH &SAFETY

19.01 It is the collective responsibility of the Company, Union, and employees to ensure compliance with the Occupational Health & Safety requirements in the Province of Ontario which include active participation in safety inspection and/ or committee meetings as well as:

(a) The Company shall provide proper safety devices and give proper attention to the elimination of any condition of employment which is a hazard to the safety or health of the employees.

(b) The Company will provide WHMIS Training to all employees as required by the relevant legislation.

19.02 The Health & Safety Committee shall be notified in writing of each lost time accident or injury. The Health & Safety Committee shall investigate as soon as possible the nature and cause of the lost time accident or injury.

19.03 An employee who is injured during working hours and is required to leave for treatment of such injury, shall receive payment for the remainder of the shift at their hourly rate of pay, unless the doctor states that the employee is fit for further work on that shift.

19.04 The Company shall provide immediate transportation to a medical facility of the Company's choice, if necessary, following an injury to a worker in the workplace.

19.05 The right to refuse unsafe work is recognized by the Company and will be administered as written in the 1995 Ontario Health & Safety Act and Regulations.

ARTICLE 20- DURATION OF AGREEMENT

20.01 This agreement is in full force and effect from the 1st day of December, 2012, until and including the 30th day of November, 2017 and thereafter shall be automatically renewed and remain in force from year to year from its expiration date, unless, within the period of ninety ( 90) days before the Agreement ceases to operate, either party gives notice in writing to the other party of its desire to bargain within a view to the renewal with or without modifications to the Agreement.

20.02 Should either party desire to change, add or amend this Agreement, notice to that effect will be given in writing. Both parties must mutually agree to any changes and shall form part of the Agreement as appendices.

)]

IN WITNESS WHEREOF the parties hereto have signed this agreement this ____ day of 201 __ at Burlington, Ontario.

The parties agree to recommend acceptance to the respective parties.

FOR THE EMPLOYER FOR THE UNION

12

APPENDIX "A"- SCHEDULE OF WAGES

Al.o1 The following wages shall apply to the following classifications during the life of this Agreement:

ClASSIFICATIONS Dec.1/ 12 Dec.1/ 13 Dec.1/ 14 Dec. 1/ 15 Dec. 1/ 16 General Labour $11.25 $11.4 0 $11.55 $11.70 $11.90 Processing $ 11.25 $11.40 $11.55 $11.70 $11.9 0 Turkey $13.10 $13-30 $13.50 $13.70 $13-95 Trimming Turkey Boning $13·45 $13 .65 $13.85 $14.05 $14 .30 Shipping/ $11.75 $11.90 $12.05 $12.20 $12.40 Receiving Freezer $11.75 $11.90 $12.05 $12.20 $12.4 0 Sanitation $11.65 $11.80 $11.95 $12.10 $12.30

SAlARY Truck Drivers + $0.25 + $0.25 + $0.25 + $0.25 + $0.30

per hour Maintenance + $0.20 + $0.20 + $0.20 + $0.20 + $0.25

p er hour Lead Hand + $0.20 + $0.20 + $0.20 + $0.20 + $0.25

p er hour

Probationary: The probationary rate will be a flat starting rate for all employees at the Ontario Minimum Wage. After completion of the Probationary period, the rate will increase by $o.so per hour. This shall apply until the employee has completed twelve (12) months of service upon which the employee will receive the proper wages under the Wage schedule. This will apply for the full term of the contract. All scheduled wage increases are subject to the employee having one year of service from the date of hire. Notwithstanding their current wage rate, all employees in the General Labour classification who have completed one (1) year of service shall receive all wage increases in accordance with the wage schedule, during the full term of the contract. *NOTE* The probat ionary rate will remain consistent with the General Minimum Wage

A1.02

i)

The following wages shall apply to the Turkey Trimming and Turkey Boning positions: The employee will receive the Turkey Trimming rate upon meeting the classification requirements.

ii) For the Turkey Boning position, upon completion of the Probationary period and completion of twelve (12) months of service and providing the employee is fulfilling the classification criteria for at least one (1) of the Turkey Boning functions but have not learned all of the positions, the employee will earn the following interim wage: Dec. 1/07- $10.85; Dec. 1/08 - $11.05; Dec. 1/09- $11.30; Dec. 1/10-$11.30; Dec. 1/11 - $11.30

13

Upon ratification, each employee will be paid a one-time signing bonus. All employees will receive one hundred and fifty dollars ($150.00). This remuneration will be paid on a separate cheque within fifteen (15) days of ratification.

14