BETWEEN:

FILENo. I 31- OOdi/ CERT. FilE

COLLECTIVE AGREEMENT CERT. DATE

IDENTCODE

RECEIVED-

S UNION RP. cherer HARDCAPsuLe ~~~ f":0:-TH--ER---......~..._....L.::.::.:..=:.:..::!._LJ

DIVISION OF R.P. SCHERER CANADA~Ii'iNcr. ------'

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

EXPIRY DATE: JUNE 30, 2005

OFFICE OF

APR 0 7 Z003 COLLECTIVE BARGAINING

INFORMATION

INDEX ARTICLE PAGE#

1 Purpose & Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Recognition ............................................. 2 3 Management Rights ....................................... 2 4 Union Security ........................................... 3 5 Union Representation ..................................... 4 6 No Strikes, No Lock-Outs .. ·: ............................... 6 7 Discipline of Seniority Employees ............................ 6 8 Grievance and Arbitration Procedures ......................... 7 9 Medical Examinations .................................... 10 1 0 Uniforms and Personal Protective Devices . . . . . . . . . . . . . . . . . . . . 1 0 11 Call-In Emergency Pay ................................... 11 12 Reporting Pay .......................................... 11 13 Seniority ............................................... 11 14 Discrimination .......................................... 14 15 Leave of Absence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16 Bereavement Leave . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . 1 5 17 Safety and Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 18 Jury Duty .............................................. 16 19 Rest Rooms and Cafeteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 20 General ............. · .................................. 17 21 Vacations . . . . . . ....................................... 17 22 Paid Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . .............. 20 23 Notice of Lay-Off ........................................ 21 24 Wage ..... .' .......................................... 21 25 Employees' Secrecy Agreement ..... :" ..................... 21 26 Sick Leave ............................................. 22 27 Health and Welfare· ...................................... 23 28 Pension Plan ........................................... 26 29 Job Posting ............................................ 27 30. Hours of Work & Overtime ................................. 29 31 Rest Periods ........................................... 31 32 Bulletin Boards .......................................... 32 33 Substance Abuse ........................................ 32 34 Duration of Agreement .. ·. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

INDEX ARTICLE

(Continued)

Schedule "A" ................................................ 34

Letters of Understandings Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Employees on Shift Filling in For Absent Machine Operators or Gel/Utility Person ...................... 38 Union Negotiating Committee .............................. 39 Courses of Instruction .......... : ......................... 40 Sub Article 27.01 (3) . . .................................. 41 Function Rotation of Employees in the Gel/Utility Classifications ... 42 Shift Trades ............................................ 43 Overtime .............................................. 44 Union Office ............................................ 46 Overtime Equalization & Overtime ........................... 47 Additional Payments into the Pension Plan .................... 49 UFCW, Local175 Training & Education Fund .................. 50 Direct Deposit .......................................... 51 Hours of Work and Overtime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 UFCW Charity Fund ..................................... 53 Return to Work Committee ................................ 54 Time Limits ............................................. 55

PAGE#

-BETWEEN:

COLLECTIVE AGREEMENT

RpScherer HARDCAPSULE•

DIVISION OF R.P. SCHERER CANADA INC. (hereinaft~r called the "Company")

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

(hereinafter called the "Union")

ARTICLE 1 -PURPOSE AND VALUES

1.01 The general purpose of this Collective Agreement between the Company and the Union is to establish and maintain orderly collective bargaining relations, a procedure for the prompt and equitable handling of grievances, efficiency and economy of operations, rates of pay, hours of work and other satisfactory conditions of employment.

1.02 Furthermore, the Company and Union recognize that it is through the following principles and values that R.P. Scherer Hardcapsule can achieve its goal of becoming a benchmark operation of the global Hardcapsule Industry. It is with this intent that we the employees of R.P. Scherer Hardcapsule commit to:

strive for excellence in service to our internal and external customers

continuously update and improve our technology, our operating practices, processes and our skills.

learn, change and act quickly to achieve and maintain a leadership position in our marketplace

To realize our goal of becoming a benchmark of the Hardcapsule Industry requires the combined efforts of all employees. Therefore, our common goal is to make the operation more effective and to enharice the job security of all employees. We recognize that this can be accomplished by bringing about lasting change and improving overall financial performance. We believe that the above objectives can be achieved by working smarter, working together, and by being open in our communication.

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ARTICLE 2 - RECOGNITION

2.01 The Company recognizes the United Food and Commercial Workers International I 175, as the sole and exclusive bargaining agent for all of its Employees at

save and except Foremen and Foreladies, persons above the rank of and Forelady, Office and Sales staff, Laboratory staff, Security Guard,

persons regularly employed for not more than twenty-four (24) hours per week and Students employed during the school vacation.

2.02 It is recognized by the Company that the general administration of the terms of this Agreement by the Union shall be carried out by its Local 175.

2.03 It is agreed that Employees of the Company who are excluded from the terms of this Collective Agreement shall not perform work normally done by Employees in the Bargaining Unit except for the purpose of instruction, training, demonstration, in cases of emergency or to replace members of the Bargaining Unit who are absent from work, provided the Company has made reasonable efforts to replace such absent Employees or to perform work normally performed by Employees who work the 2-2-3 schedule where no bargaining unit Employee who is qualified to perform the work to be done is available to perform the work on an overtime basis. It is understood that this clause shall not prevent Employees who are not covered by this Agreement from performing the work normally done by an Employee who is absent on Union business on a temporary basis.

2. 04 It is agreed that Employees of the Company who are excluded from the terms of this Collective Agreement shall not be restricted from doing manual labour if working on a prototype unit and\or while engaged in research and development work, experimentation or the redesign of equipment.

2.05 Notwithstanding any other provisions of this article or of this Collective Agreement, work performed by shift supervisors with respect to any and all computer functions in context of their management duties shall not be considered bargaining unit work.

2.06 In the event of relocation of bargaining unit work inside the Province of Ontario, the bargaining unit members will be offered first refusal of any relocated work.

2. 07 Every Employee must retire effectively the first day of the month following the month in which the Employee attains the age of sixty-five (65).

ARTICLE 3 - MANAGEMENT RIGHTS

3.01 Subject to the terms of this Agreement, the Union acknowledges that it' is the exclusive right of the Company to:

(a). maintain order, discipline and efficiency;

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(b} hire, discharge, promote, demote, classify, and discipline Employees provided that any claim that an Employee has been discharged or otherwise disciplined without just cause may be the subject of a grievance and dealt with as hereinafter provided;

(c) generally to operate and manage its business in all respects in accordance with its obligations;

(d) make and alter reasonable rules and regulations to be observed by the Employees. In respect to these rules and regulations, it is understood that all Employees are required to sign a Secrecy Agreement prior to being taken on the payroll; ·

(e) without restricting or limiting the generality of the preceding, the Company retains all rights and responsibilities of Management not specifically relinquished or modified by the express provisions of this Agreement.

3.02 It is recognized that the Company has the right to introduce new or improved methods of operation or any· other changes which it deems appropriate in its manufacturing process. It is also understood that in the event the Company plans to introduce new methods of production, new machinery or changes in the process of production which are likely to affect the classification of Employees or the number of Employees within any classification or which will result in the establishing of new classifications, the Company will, to the extent possible give advance notice to the Union of such changes.

3.03 The Company recognizes that whenever possible it will carry out a program of retraining for Employees whose jobs are eliminated or materially changed as a result of changes in the production process or changes in machinery. It is recognized, however, that the obligation of the company to conduct any retraining program will depend on the degree of change and the adaptability and availability of Employees to participate in any retraining program within reasonable time limits.

ARTICLE 4- UNION SECURITY

4.01 All employees at the date of this Agreement shall become members of the Union and shall remain members in good standing as a condition of their continued employment with the Company. Any Employee who is hired subsequent to the date of this Agreement shall become a member of the Union within thirty (30) days of his hiring and will be required to continue to be a member in good standing of the Union as a condition of his employment.

4.02 All Employees who are covered by the terms of this Collective Agreement and who have completed the probationary period outlined herein must pay Union dues through check-off as a condition of continued employment. The Union must supply

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a form authorizing the deduction of Union dues, signed by the Employee, before the check-off commences for the Employee.

4.03 Before completing the probationary period, all new Employees must sign a form which authorizes the Company to check off weekly Union dues from their pay as a condition of continued employment. The check-off of Union dues shall commence in the month immediately following the date on which the Employee completes the probationary period. The Company will submit to the Union by the 151

h of each month the total amount of Union dues that have been deducted together with a list of Employees for whom the deductions have been made.

The dues and initiation report will be provided in the form of e-mail (remit@ufcw175.com) or on computer diskette as well as a hard copy of the dues report being attached to the remittance cheque.

4.04 The Company will deduct from the pay of Employees who are covered by the terms of this Collective Agreement and who have completed the probationary period outlined herein the Union Initiation fee as determined by the Union from time to time and will remit such fee to the Union. Prior to the Company making such deduction, the Union must supply a form authorizing the deduction of the Union Initiation fee, signed by the Employee from whom the deduction will be made.

ARTICLE 5- UNION REPRESENTATION

5.01 (a) The Company recognizes the right of the Union to elect or appoint four (4) Stewards who will represent the Employees covered by the terms of this Collective Agreement. It is understood that the number of Union Stewards may be readjusted if the total number of Employees in the bargaining unit changes. It is the intention of the parties that the number of Union Stewards will be maintained on the same proportionate basis to the total bargaining unit.

. (b) There shall be one (1) Union Steward on each of the 2.2.3 groups, namely, Groups 1 , 2, 3 and 4. If an employee who is a Union Steward on one Group is transferred to another Group and that same Group is left with no Union Steward, the Union representative will appoint a new Union Steward from the remaining members on the Group as soon as possible. The transferred Union Steward will cease to be a Union steward, if the Group to which he is transferred has a Union Steward on it. If there is no Union Steward on that Group or a switch of Union Steward for Union Steward is made, then each carries on as a Union Steward on their new Group.

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(c) If a Group Union Steward is absent for more than thirty (30) days, the Union representative will appoint a new Union Steward until the original Union Steward returns or his/her term expires.

(d) Chief Steward will be given the appropriate time off with pay, in order to attend a Company/Union Step 2 Grievance meeting.

5.02 The Union will notify the Company in writing as to the names of the Stewards. No Employee will be elected or appointed as a Steward unless he has completed the probationary period.

5.03 Union Stewards will be allowed reasonable time during working hours to process or investigate grievances without loss of pay, providing that any Steward received prior permission from his supervisor to be absent from his work, which permission shall not be unreasonably withheld. If it is necessary for a Steward who is processing or investigating a grievance in accordance with the foregoing to meet, in private, with an Employee, the Company will, upon request from the Steward, make a meeting room available.

5.04 One of the four (4) Stewards shall be appointed or elected as a Chief Steward. For the purposes of layoff the Chief Steward will have super-seniority in the classification in which he is working, as per Article 13.05- Seniority.

5.05 Labour-Management Committee

A Labour Management Committee shall be established consisting of a maximum of four (4) Representatives of the Union and a maximum of three (3) Representatives of the Company. The Labour-Management Committee shall concern itself with matters of the following general nature:

(i) Considering constructive criticism so that proper relations may exist between the Company and the Employees employed within the bargaining unit described in Article 2 of this Agreement;

(ii) Increasing operational efficiency by promoting cooperation between the Company and its Employees;

(iii) Improving service to the Customers of the Company.

The Labour-Management Committee shall meet at the request of either party at a time and place mutually satisfactory to both parties. The written request shall indicate insofar as possible the matters to be discussed at the meeting. The meetings shall be alternately chaired by a Representative of the Union and the Company. . It is further mutually agreed and understood that the Labour-

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Management Committee does not in any way form part of the Grievance or Arbitration Procedures set forth in this Agreement and that no matter which is the subject matter of a grievance or arbitration shall in any event be the subject of discussion at any meeting of this Committee.

It is agreed that not more than two (2} Representatives of the Union will be paid at their regular straight time hourly rate of pay for the time spent at the meeting during their regular working hours.

The Union Business Agent or his designate shall have the right to attend any meeting of the Labour-Management Committee.

5.06 The Business Representative of the Union who is assigned to service this bargaining unit, or his designate, may, upon giving reasonable notice to the Manager of Human Resources, or his designate, enter the plant, at a mutually convenient time, to service this Collective Agreement.

5.07 The Company commits that during the annual shift alignment, which will be finalized before December 15th, of each year and implemented on the first work shift of the succeeding year, no more than one (1) elected steward will be assigned per group. ·

ARTICLE 6- NO STRIKES, NO LOCK-OUTS

6.01 There shall be no strikes or lock-outs so long as this Agreement continues to operate.

ARTICLE 7- DISCIPLINE OF SENIORITY EMPLOYEES

7.01 Employees who have completed the probationary period and who have acquired seniority shall not be discharged or demoted or otherwise disciplined without just cause. In the event that any Employee who has completed the probationary period is disciplined to the extent that there is a written record of the disciplinary action placed in the personnel file of the Employee, the Company shall provide the Employee concerned with a copy of the written disciplinary notice and it shall also send a copy of any such notice to the Union

7.02 If an Employee who is covered by the terms of this Agreement is interviewed by a member of Management on a matter which relates to the:

(a)

(b)

administration of discipline for the employee;

investigation of an incident regarding culpability that may lead to disciplinary action. ·

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The Employee will have a Union steward present during the interview.

7.03 Notice of disciplinary action against an Employee is to be removed from the Employee's disciplinary file after twelve (12) months from the date of the notice.

7.04 An Employee shall be permitted to see his own disciplinary file once during each twelve (12) month period, subject to the following conditions:

(i) The Employee has submitted a written request to the Manager of Human Resources, or his designate; ·

(ii) The Employee's disciplinary file shall be reviewed by him in the office of the Manager of Human Resources, or his designate, at a mutually agreeable time; and

(iii) Nothing in the Employee's disciplinary file shall be grieved under Article 8 hereof unless the matter has been previously grieved in accordance with said Article 8.

7.05 If an Employee is discharged or suspended while on Company premises, he/she will be advised that he/she may meet with his/her ~teward, in private, for a reasonable period of time, not to exceed fifteen (15) minutes. At the conclusion of the meeting, the Employee must leave the Company premises.

7.06 The Company will continue to pay Green Shield, Dental and Group Life Insurance premiums to seniority employees who have been suspended pending investigation.

ARTICLE 8- GRIEVANCE AND ARBITRATION PROCEDURES

8.01 For the purposes of this Agreement, a grievance is defined as a claim by the Company or the Union or by an Employee that there has been a violation of this Collective Agreement.

8.02 If an Employee has a complaint, he shall first discuss the complaint with his immediate Supervisor. When discussing the complaint with his immediate Supervisor the Employee may, if he wishes, be accompanied by his Steward. If no Steward is working on the Employee's shift, an alternate Steward will be appointed by the Employee involved. It is the desire and the intention of the parties that all complaints shall be adjusted or settled as quickly as possible. If an Employee is unable to satisfactorily resolve a complaint under this informal procedure, then the matter may become the subject of a formal grievance and dealt with in accordance with the following steps:

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STEP 1:

The grievance shall be presented in writing, signed by the Employee concerned, to the immediate Supervisor of the Employee and must be submitted within seven (7) calendar days of the time when the cause of the grievance first occurred. The Employee may be accompanied by his Union Steward when presenting his grievance. The immediate Supervisor of the Employee shall answer the grievance in writing within seven (7) calendar days after he receives same and such answer shall, if the grievance is derired, indicate the reason for such denial, whenever possible.

STEP 2:

If the grievance has not been settled at STEP 1, then the grievance may be presented to the Manager of Human Resources or his designate within seven (7) calendar days after the Employee has received the written answer from his immediate Supervisor. The Manager of Human Resources or his designate shall meet and discuss the grievance with the Union Representative. For such purpose, a meeting shall be convened on the third (3~d) Wednesday of every month at 9:00 a.m. unless another time and date are mutually agreeable to the Manager of Human Resources or his designate and the Union Representative. The Manager of Human Resources or his designate shall answer the grievance in writing within seven (7) calendar days after the meeting.

8. 03 If the grievance has not been settled in accordance with the procedure outlined above, then the grievance may be submitted to arbitration within the period of twenty-one (21) calendar days after the Manager of Human Resources or his designate has issued his written answer to the Union Representative. Any notice of intention to proceed to arbitration must contain details of the grievance and a statement of the actual relief which is sought from a single Arbitrator.

8.04 Any grievance which is processed to arbitration shall be dealt with in arbitration by a single Arbitrator. The parties agree that one of the four ( 4) Arbitrators listed herein shall be selected to deal with the grievance. The selection of a single Arbitrator shall be based on a rotation system, provided, however, that if the selected Arbitrator is

·unable to hear the matter within a period of six (6) weeks from the time the dispute is referred to him, then the next named Arbitrator shall be appointed by the parties to hear the dispute. The Arbitrators shall be:

Ted Crljenica David Williamson Louisa M. Davie Peter G. Barton

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8.05 Each of the parties shall share equally in the expenses of the Arbitrator.

8.06 No grievance shall be dealt with by an Arbitrator unless it has been properly carried through all of the required Steps in the Grievance and Arbitration Procedures.

8.07 The Arbitrator shall not have any authority to alter, modify or amend this Agreement or to make any decision which is inconsistent with its terms.

8.08 Time limits, as outlined in the·Grievance and Arbitration Procedures, can only be altered by mutual agreement between the parties.

8.09 When dealing with a dispute which relates to the discharge or suspension of an Employee, the Arbitrator shall have authority in his discretion to reinstate an Employee with or without loss of wages or loss of seniority and to make any other decision relating to the discharge or suspension which he considers just and reasonable in all the circumstances. ·

8.10 Company Grievance or Union Grievance

It is recognized that the Company or the Union shall have the right to file a grievance which alleges a violation of this Agreement. Any such Union grievance must be a grievance which is distinguished from a grievance of a single Employee on a disciplinary matter or on seniority. A Company or Union grievance must be sent by registered mail or be personally delivered to the Manager of Human Resources, or his designate, or to the Business Representative of the Union as the case may be. Any such grievance must be presented within fourteen ( 14) calendar days of the time when the cause of the grievance first occurred.

If such grievance is not settled within fourteen ( 14) calendar days after it has been presented, then it may be submitted to a single Arbitrator, within the said fourteen (14) calendar days and any notice of intention to proceed to arbitration shall contain a statement of the matter in dispute and the relief sought from the Arbitrator.

8.11 It is agreed between the parties that any grievance of an Employee which relates to discharge or suspension or other form of discipline must be filed within seven (7) calendar days after the occurrence of the matter which is the subject of the grievance.

8.12 The phrase "calendar days" shall exclude periods of plant shutdown during Summer vacation and the Christmas season.

8.13 The provisions of this article shall not apply in the case of discharge, demotion or discipline of any probationary Employee, nor shall the provisions of this article be available to their Union on behalf of any probationary Employee in the case of the discharge, demotion or discipline of any probationary Employee.

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ARTICLE 9 - MEDICAL EXAMINATIONS

9.01 It is recognized that all Employees may be required so as to comply with laws or as to comply with rules and regulations of the Company to submit to a medical examination. Any such examination shall be carried out by a Medical Practitioner who is designated and paid by the Company.

9.02 Employees shall not lose any wages as a result of having to attend for a medical examination and if an Employee is required to submit to a medical examination outside of working hours, then the Employee shall be paid $10.00 for the amount of time involved in such examination. Whenever possible, the Company will attempt to avoid having Employees attend for medical examinations outside of working hours.

The provisions of this Article in respect of payment for time spent during medical examinations do not apply to any pre-employment medical examination or an examination which is required by the Company when an Employee is rehired or recalled after being absent due to an accident, illness, or return from lay-off. In arranging for medical examination of a person who is subject to recall, the Company shall attempt, wherever possible, to arrange for the medical examination to be conducted at a time when the person shall not suffer loss of earnings.

ARTICLE 10- UNIFORMS AND PERSONAL PROTECTIVE DEVICES

10.01 Uniforms which the Company requires to be worn shall be furnished to the Employee by the Company without charge. These uniforms which shall at all times remain the property of the Company shall be laundered and maintained at the expense of the Company.

10.02 The Company will pay annually, for approved slip resistant shoes to employees who are required to wear safety shoes in the course of their employment, up to a maximum of one hundred and eighty dollars ($180.00) ($240.00 for Employees in the Gel/Utility classification).

Employees shall not remove safety shoes from the Company premises. Employees must, as a condition of payment, provide the Company with satisfactory proof of purchase regarding the purchase of safety shoes and deliver to the Company the old pair of safety shoes which are being replaced.

10.03 The Company will supply safety glasses (prescription if necessary) which must be worn by Employees in designated areas.

10.04 The Company will provide all-weather coats for the use' of Employees who require same in the performance of their jobs.

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,,.o-'

. . .. .

10.05 All Employees shall be required to wear all safety and protective equipment as directed by the Company from time to time.

10.06 Employees in the classification of Electrician and Equipment Maintenance A shall receive, on a calendar year basis, a maximum of two hundred dollars ($200.00) toward the purchase of tools. As a condition of payment, the tools must be required by the Employee for use by the Employee in the performance of his/her job at the Company, the purchase must be approved by the Company and the Employee must supply to the Company satisfactory written proof of purchase and of the amount paid. The tools shall remain the property of the Company and shall not become the property of the Employee unless the l;:mployee continues to be an active Employee of the Company for a period of thre~ (3) months following the date of purchase.

ARTICLE 11- CALL-IN EMERGENCY PAY

11.01 An Employee who has completed his day's work and who has left the premises of the Company and who is called back to work to perform emergency work, shall receive a minimum of four (4) hours pay at his regular rate or time and one-half (1 %) his regular rate for all hours worked, whichever is the greater. On a holiday, the employee will receive a minimum of four (4) hours pay at time and one half (1 %), or double time (2X) for all hours worked, whichever is the greater.

ARTICLE 12- REPORTING PAY

12.01 An Employee who reports for work at his regular starting time without having received prior notice not to report for work shall be paid a minimum of four (4) hours pay if he does not work .

12.02 This guarantee shall not apply in the event that the lack of work is caused by a major breakdown of the plant due to power failure or weather conditions.

ARTICLE 13 - SENIORITY

13.01 New Employees who are classified as, Sorters, or Shippers-Truck Drivers shall be considered on probation for a period of thirty (30) days of work. Employees who are classified as Equipment Maintenance, Machine Operator, Gel/Utility, Custodian, Printers, Quality Control Checkers, Quality Control Printer or Printer Set-Up/Repair shall be considered on probation for a period of sixty (60) days of work, provided that any such Employees who are assigned to work the 2-2-3 schedule shall be considered on probation for a period of forty-five ( 45) days of work.

Probationary Employees who are re-hired and who in fact return to work within thirty (30) calendar days of the termination of their employment will be given credit for all days worked previous to the termination of their employment.

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13.02 Probationary Employees shall not have the right to process a grievance relating to discharge, demotion or discipline because it is understood that probationary Employees may be discharged, demoted or disciplined at any time during the probationary period. Upon completion of the probationary period, an Employee's seniority date shall be the first day worked.

13.03 Seniority shall be determinative only for those purposes expressly described in this Agreement Seniority shall be defined as the length of continuous service with the Company within the Bargaining Unit described in Sub-article 2. 01 hereof calculated from the seniority date determined in accordance with Sub-article 13.02 hereof.

13.04 The seniority list will be supplied to the Union and posted on the bulletin board every six (6) .months. In the event that two (2) or more Employees are hired on and start to work on the same day, they will be listed on the seniority list in the order of interview by date and time.

13.05 Lay-off

In the event that it is necessary to lay off any seniority Employee, the following procedure will be followed subject to article 5.04:

(a) The Job Classification in which the lay.:off is to occur will be identified.

(b) All probationary Employees in that Job Classification will be laid off before any seniority Employee is laid off.

(c) Seniority Employees in that Job Classification will be identified for lay-off in inverse order of seniority.

(d)' (i) A seniority Employee who is identified for lay-off in accordance with paragraph (c) above, may elect to displace another Employee in accordance with paragraph (e) below or to take the lay-off.

(e)

(ii) A seniority employee who is identified for permanent layoff or whose job becomes redundant may elect to displace another employee in accordance with paragraph (e) below or to take the lay off.

(i) A seniority Employee who elects to displace another Employee as provided in paragraph (d) above shall select the classification into which he chooses to bump and may displace the Employee who has the least seniority in that classification provided the displacing Employee has more seniority than that Employee and provided the displacing Employee has all of the necessary qualifications and can

12

immediately perform the job of that Employee, after a reasonable familiarization period (as distinct from a training period) not to exceed one ( 1 ) week.

(ii) A seniority employee who elects to displace another employee as provided in paragraph (d) (ii) above shall select the classification into which he chooses to bump and may displace the junior employee and be given a training period not to exceed one hundred twenty (120) hours.

(f) An Employee who is displaced in accordance with paragraph (e) above may elect to displace another Employee in accordance with paragraph (e) above or to take the lay-off. If said Employee elects to displace another Employee in accordance with paragraph (e) above, all of the provisions of that paragraph shall apply to said Employee as if such Employee had been subject to paragraph (c) and (d) above.

(g) The election to displace another Employee in accordance with paragraphs (e) or (f) above must be made within thirty-six (36) hours of the time that the Employee is advised that he has been identified for lay-off or that he is being displaced, as the case may be. An Employee who does not make the election, as aforesaid, will be laid off. An Employee who makes the election, as aforesaid, but who is unable to displace another Employee in accordance with the foregoing, will be laid off.

(h) An Employee who displaces another Employee in accordance with the foregoing, will take the work schedule and the rate of pay of the Employee whom he displaces.

13.06 (a) Recall

Recall shall be in the reverse order of lay-off, provided the Employee who is recalled has all of the necessary qualifications and can immediately perform the job to which he is being recalled.

(b) Laid off employees will revert back to their original job once all employees have been recalled.

(c) Should the lay off result in a redundancy of the employee's original job then the said employee may exercise his seniority in accordance with Article 13.05 (e, f, g, h)

13.07 (a) An Employee who is transferred to a lower rated job will have his rate of pay adjusted as of the date of the said job transfer.

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(b) An Employee who is transferred to a higher rated job shall not have his rate of pay reduced as a result of such transfer.

(c) Subject to Articles 13.05 and 13.06, Clause (a) above shall not apply to Employees who are temporarily transferred to a lower rated job.

13.08 Subject to Article 29, for the purposes of transfer and the reclassification of any Employee, seniority shall also be applied, provided, however, that the Employee who claims the right to exercise his seniority in respect to transfer or reclassification, has the skill, ability and physical capabilities to do the work required.

13.09 An Employee shall lose seniority and his employment shall be terminated if he:

(a) quits;

(b) is discharged and not reinstated pursuant to the grievance and arbitration procedures;

(c) has been laid off and has not returned to work upon recall from lay-off within three (3) working days of the date on which the Employee was requested to return to work by Notice of Recall sent to the Employee by registered mail one week prior to the date of return;

(d) overstays a leave of absence without securing an extension in writing or without providing a justifiable reason to the Company;

(e) is absent from work without leave for three (3) consecutive working days without a justifiable reason;

(f) is laid off and not recalled for a period of twelve (12) months in the case of Employees having less than three (3) years seniority; is laid off and not recalled for a period of twenty-four (24) months in the case of Employees having three (3) years or more seniority.

13.10 It is understood that all Employees have a responsibility to keep the Company informed of their home address and telephone number. If an Employee fails to discharge this responsibility, the Company will not be responsible for the failure of any notice to reach an Employee.

ARTICLE 14- DISCRIMINATION

14.01 The Company and the Union agree that there will be no discrimination against any Employee because of race, colour, creed, sex, membership in the Union, age or marital status.

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ARTICLE 15 - LEAVE OF ABSENCE

15.01 The Company may grant leave of absence without pay to Employees who request leave for legitimate personal reasons. Any request for leave of absence must be submitted in writing, at least two (2) weeks in advance and the application shall state the reason for the request for the leave of absence. The Company shall reply in writing within two (2) weeks of receipt of the application.

' ' . 15.02 It is understood that when emergency conditions prevail the requirement for

advance notice for leave of absence shall not apply.

15.03 Under the circumstances outlined above a request for leave of absence for a valid persona.! reason shall not be unreasonably withheld having regard to the normal operations of the plant.

15.04 Employees who have been elected or appointed to a full-time position with the Union shall be granted leave of absence without pay when an Employee is required to assume full-time duties for the Union. Any request for such leave of absence must be made in advance for a period of at least two (2) weeks and the leave of absence shall not extend beyond a period of twelve (12) months.

15.05 The Company will grant pregnancy leave and parental leave in accordance with the Employment Standards Act.

15.06 A seniority Employee who is convicted of an offence arising from the operation or care or control of a motor vehicle and which results in the seniority Employee receiving a jail term will, upon submitting a written request together with proof of conviction and the length of the jail term, be granted a leave of absence, without pay or benefits, for the duration of the jail term not to exceed sixty (60) calendar days. A seniority Employee is only eligible to apply for and to be granted such a leave of absence once during that Employee's employment with the Company

ARl"ICLE 16- BEREAVEMENT LEAVE

16.01 In the event of the death of an Employee's mother, father, wife, husband, son, daughter, sister, brother, mother-in-law, father-in-law, grandmother, grandfather, or grandchild the Company, at the request of the Employee will grant a leave of absence without loss of pay for a maximum period of three (3) consecutive days, one of which must be the date of the funeral of the said mother, father, wife, husband, son, daughter, sister, brother, mother-in-law, father-in-law, grandmother, grandfather or grandchild.

16.02 In the event of the death of an Employee's sister-in-law, or brother-in-law, the Company, at the request of the Employee, will grant a leave of absence without loss

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of pay for a maximum period of one { 1) day which day shall be the date of the funeral.

16.03 A request for a bereavement leave shall be in writing signed by the Employee making the request, but, because of the nature of the leave, such form may be completed by the Employee after he returns to work.

16.04 No bereavement leave of absence will be granted to an Employee during an Employee's vacation, days off or other leave of absence.

16.05 An Employee shall, when requested by the Company, provide the Company with proof of death. Such request shall ~at be made unreasonably.

ARTICLE 17 - SAFETY AND HEALTH

17.01 It is understood that the Company, the. Union and the Employees shall cooperate so as to maintain safe and healthy working conditions for the Employees. The Employees shall immediately report to the Company any conditions which are detrimental to the safety and health of the Employees.

17.02 It is understood and agreed that a Safety Committee composed of up to three (3) Representatives of the Company and up to three (3) Representatives of the Union appointed by the Mernbers of the Bargaining Unit shall be established and shall meet at the request of any Member of the Committee to discuss specific conditions of safety. The Union will make all reasonable efforts to avoid appointing two {2) Representatives from the same classification.

ARTICLE 18- JURY DUTY

18.01 When an Employee attends at Court in response to a subpoena issued by the Crown Attorney's office or when an Employee is summoned to and reports for Jury duty, he shall be paid the difference between the daily amount received from the Crown Attorney's office or for Jury service and his straight time hourly rate that he otherwise would have received for work which he did not perform. The Employee will present proof of service and attendance and the amount of pay received.

ARTICLE 19- REST ROOMS AND CAFETERIA

19.01 The Company shall provide adequate rest rooms and a cafeteria which shall be heated and ventilated and kept in a sanitary condition. Employees shall cooperate with the Company in maintaining clean and sanitary conditions in all rest rooms and in the cafeteria.

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ARTICLE 20- GENERAL

20.01 Wherever the singular and the masculine are used throughout this Agreement, the same shall be construed as meaning the plural or the feminine where the context or the parties hereto require.

20.02 In the event that the Company establishes an entirely new classification, it shall notify the Union, in writing, of the establishment of the classification and the rate{s) of pay regarding same. If the Union does not agree with the rate{s) of pay established by the Company, it shall, within twenty-one (21) calendar days after the Company's notification, advise the Company of its disagreement. The Company and the Union shall then meet to discuss the rate{s) of pay. If they are unable to agree to .the rate{s) of pay, the issue{s) shall be submitted to an arbitrator for determination.

ARTICLE 21- VACATIONS

21.01 (a)

(b)

The Company shall post a notice, by January 15th of each year, of the proposed plant shutdown, if any. Subject to sub-article 21.07, the Company shall make Vacation Planner "A" availabl.e for the period January 15th of each year to February 28th of each year. During the period January 15th to February 28th ofeach year, each Employee in each classification shall indicate his/her. request for a minimum of two {2) ~eeks of vacation on Vacation Planner "A". The Company agrees to recognize seniority, by classification, when considering the vacation requests. The company shall schedule two {2) weeks of vacation for any Employee who does not indicate a request for a minimum of two {2) weeks of vacation on Vacation Planner "A" by February 28th of each year. The dates of the plant shutdown, if any, and the results of the vacation requests on Vacation Planner "A" {including vacation scheduled by the Company as aforesaid) shall be finalized and posted by March 3P1of each year.

Subject to sub-article 21.07, the Company shall make a Vacation Planner"B" available for the period April 1st of each year to December 31st of each year. During the period April1 51 to December 31st of each year, Employees who have vacation in excess of the vacation scheduled in accordance with paragraph (a) hereof, shall indicate his/her requests for such excess vacation on Vacation Planner "B". Such requests shall be granted on a "first come, first served basis" provided that the request must be for a minimum of one ( 1) day and provided that the request is made at least two (2) weeks before the requested vacation time. Any employee who has vacation remaining after December 31 51 of each year and who has not submitted a request in accordance with the foregoing shall be deemed to have waived the remaining

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vacation time. The vacation pay referable to that vacation time shall be paid to such employees no later than the third pay period in January of each year.

21.02 Employees who on April 30th of each year have less than one (1) year of seniority shall receive vacation pay equal to four percent (4%) of the total gross earnings of the Employee up to April 30th.

21 . 03 Employees who on Apri I 30th of each year have more than one ( 1 ) year but less than five (5) years of seniority shaH receive a vacation of two (2) weeks and the vacation pay shall be calculated at four percent (4%) oftheir total gross earnings during the twelve (12) month period immediately prior to April 30th or an amount equal to two (2) weeks of regular straight time hourly earnings whichever amount is greater. The application of the aforesaid computation of vacation pay shall only apply to Employees who have been absent from work for less than thirty (30) days during the twelve (12) month period immediately prior to April 30th. For Employees who have been absent from work for thirty (30) days or more during the aforesaid period, they shall receive vacation pay based on four percent (4%) of total gross earnings over the twelve ( 12) month period.

21.04 Employees who on April 30th of each year have more than five (5) but less than ten(1 0) years of seniority shall receive a vacation of three (3) weeks and the vacation pay shall be calculated at six percent (6%) of their total gross earnings during the twelve (12) month period immediately prior to April 30th or an amount equal to three (3) weeks of regular straight time hourly earnings whichever amount is greater, provided this computation of vacation pay shall only apply to Employees who have been absent from work for less than thirty (30) days during the twelve ( 12) month period fmmediately prior to April 30th. For Employees who have been absent from work for thirty (30) days or more during the aforesaid period, they shall receive vacation pay based on six percent (6%) of total gross earnings over the twelve ( 12) month period.

21.05 Employees who on April 301h of each year have ten ( 1 0) or more years of seniority shall be given a vacation offour (4) weeks and the vacation pay shall be calculated at eight percent(8%) of their total gross earnings during the twelve (12) month period immediately prior to April 30th or an amount equal to four ( 4) weeks of regular straight time hourly earnings whichever amount is greater, provided this computation of vacation pay shall only apply to Employees who have been absent from work for less than thirty (30) days during the twelve (12) month period immediately prior to April 301h. For Employees who have been absent from work for thirty (30) days or more during the aforesaid period, they shall receive vacation pay based on eight percent (8%) of total gross earnings over the twelve (12) month period.

21.06 (a) Employe.es who on April 30th of each year have twenty-five (25) or more years of seniority shall be given a vacation offive (5) weeks and the vacation pay shall be calculated at ten percent (1 0%) of their total gross earnings

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during the twelve (12) month period immediately prior to April 301h or an amount equal to five (5) weeks of regular straight time hourly earnings whichever amount is greater, provided this computation of vacation pay shall only apply to Employees who have been absent from work for less than thirty (30) days during the twelve ( 12) month period immediately prior to April 30th. For Employees who have been absent from work for thirty (30) days or more during the aforesaid period, they shall receive vacation pay based on ten percent (1 0%) of total gross earnings over the twelve (12) month period.

(b) Employees who on Apri1301h, of each year have thirty (30) or more years

of seniority shall be given a vacation of six {6) weeks and the vacation pay shall be calculated at twelve percent {12%) of their total gross earnings during the twelve ( 12) month period immediately prior to April 30th or an amount equal to six (6) weeks of regular straight time hourly earnings whichever amount is greater, provided this computation of vacation pay shall only apply to Employees who have been absent from work for less than thirty (30) days during the twelve (12) month period immediately prior to April 30th. For Employees who have been absent from work for thirty (30) days or more during the aforesaid period, they shall receive vacation pay based on twelve percent (12%) of total gross earnings over the twelve (12) month period.

21.07 In the event the Company shuts down its plant for vacation purposes, all Employees not scheduled by the Company to work during such period shall take their vacations during such period of shutdown to the extent they are entitled. Employees scheduled to work for part of the period of shutdown shall take their vacations during the period of shutdown in which they are not scheduled to work to the extent they are entitled. In the event that an Employee is entitled to more vacation than the period of shutdown or in the event that an Employee is entitled to more vacation than the vacations taken, if any, during the shutdown, that Employee's additional vacation shall be taken in accordance with sub-article 21.01.

21.08 Vacation pay for Employees on the 2-2-3 schedule will be computed as a percentage of their applicable earnings versus normal weekly earnings computed at 40-1/4 hours per week average, assuming the schedule was in effect for the complete applicable vacation year. If not, computation will be pro-rated according to scheduling in effect at the time.

21.09 The vacation year shall be the twelve (12) month period commencing May 1st of any year and ending April 30th of the following year. Vacation entitlement shall be determined as at April301

h of each year. Vacation entitlement earned as of April 30th of any year must be taken in the immediately following vacation year and cannot be carried forward into a successive vacation year.

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21.10 Employees on the 2-2-3 schedule may request a leave of absence, without pay, of one-half(% ) day, at the expiry of their vacation. If such request is made before the commencement of the vacation, it shall be granted. If any such Employee has unused vacation at the time of the leave of absence, the absence shall be charged to his unused vacation as vacation time taken.

21.11 Vacation pay shall be paid at the time that the vacation is taken with the exception of vacation pay during scheduled shutdown, which will be paid during the regular pay period that falls.lmmediately prior to the start of the first full week of the shutdown.

21.12 Any employee who has in excess of two (2) weeks vacation may waive all or some of such excess vacation, in writing. The vacation pay referable to the "waived" vacation shall be paid to the Employee within two (2) weeks of the company receiving the Employee's signed waiver. For the sake of clarity, it is stated that this sub-article only applies to vacation that has in fact been earned.

ARTICLE 22- PAID HOLIDAYS

22.01 All employees who have completed the probationary period shall be paid seven and one-half hours (7 %) or eight hours (8) , as applicable, regular pay for each of the following holidays:

New Year's Day (January 1 51)

Victoria D.~y Civic Holiday Thanksgiving Day Christmas Day (December 251h) December 27th December 28th

Good Friday Dominion Day (July 151

)

L.abour Day December 241h

Soxing Day (December 261h) December 31st

22.02 In the event that a paid holiday occurs during the term of an Employee's vacation then the Employee shall be given an extra day of vacation with pay at his regular rate.

22.03 In order to qualify for holiday pay, an Employee must have worked his full work day or work shift immediately prior to the holiday and immediately after the holiday. However, an Employee shall not be disqualified from receiving holiday pay because he was absent on either or both of the days referred to above due to illness, injury, lay-off, authorized leave of absence or bereavement leave provided the Employee performs some scheduled and authorized work in either the week prior to the week in which the holiday occurs or in the week following the week in which the holiday occurs. It is understood that the Company reserves the right to require an Employee to present a medical certificate in respect to any absence for illness or injury.

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22.04 If an Employee works on a holiday, he shall receive double time for all hours so worked, plus holiday pay, if eligible to receive same. An Employee shall be obliged to work on a holiday if his work schedule includes such work.

22.05 Employees who work on Easter Sunday shall be paid for all hours worked on Easter Sunday at the rate of two times their regular straight time hourly rate of pay.

22.06 Employees who have been employed for one hundred and twenty (120) calendar days as of July 1st of each- year, shall be entitled to a personal day off with pay during each twelve ( 12) month period commencing July 1st of each year and ending June 30th of the year following. The amount of pay shall be the amount which is equivalent to a regular day's pay at the Employee's regular straight time hourly rate of pay. No personal day off shall be scheduled during the vacation or plant shutdown. Employees shall give two (2) weeks written notice in advance of the requested day off and the day off shall be selected by mutual agreement. Failing mutual agreement, the day off will be assigned by the Company. Notice of the particular day selected or assigned will be posted on the bulletin board in the cafeteria for·a period of seven (7) consecutive calendar days. If within that period another Employee(s) in the same classification and on the same shift with more seniority requests the same day off, the Employee with the most seniority will be given that particular day off and the Employee who first applied for that day off must submit a new request in accordance with the provisions hereof.

ARTICLE 23....: NOTICE OF LAY-OFF

23.01 The Company agrees that it will provide Employees with two (2) weeks prior notice of any lay-off, except when the lay-off is due to an emergency breakdown condition. Those laid off shall receive written notification in person or by registered mail. This requirement of notice does not apply whenever an Employee is recalled to perform work for a period of less than seven (7) days. Any Employee who receives a notice of lay-off shall notify the Company within twenty-four (24) hours of receipt of the notice whether or not he intends to exercise group wide seniority rights.

ARTICLE 24- WAGE RATES

24.01 The wage rates which shall apply during the term of this Collective Agreement are set forth in Schedule "A" attached hereto which forms part of this Collective Agreement.

AR"riCLE 25- EMPLOYEE"S SECRECY AGREEMENT

25.01 It is understood that all Employees covered by this Collective Agreement shall be required to sign an Employment Secrecy Agreement when they are hired.

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ARTICLE 26 - SICK LEAVE

26.01 All Employees who have completed the probationary period as of July 15\ 1999,

shall, be entitled to six (6) days sick leave with pay.

All New Employees who have completed twelve months of employment after July 1st, 1999, shall, on their seniority date, be entitled to three (3) days sick leave with pay, and an additional one day sick leave for each subsequent year of service up to a maximum of six (6) days:·

In the event of an absence of more than fifty percent of an Employee's scheduled shift, the Employee will be charged and paid a full day from their remaining sick days.

If the employee is absent from work due to illness for a period of one to three days, such employee will be charged and paid the balance of their sick days up to a maximum of three (3) days.

No Employee shall be paid pursuant to the provisi.ons of this Article who is absent due to illness or injury compensable by a Workplace Safety & Insurance Board benefit or any liability or other insurance claim,.

26.02 On or before the third (3rd) pay day in January in each year during the currency of this Agreement, Employees shall receive a cash payment covering the amount of unused sick pay to their eligible maximum number of days of normal earnings accumulated to the immediately preceding December 30th in each year.

26.03 The sick pay allowance shall not accumulate from year to year.

26.04 Despite anything contained in this Agreement, an Employee who is absent from work for three (3) or more consecutive days for medical reasons due to illness or injury, and regardless or whether sick pay is claimed or not, must, prior to returning to work, provide to the Company written medical documentation from a qualified physician confirming that the Employee was unable to work due to illness or injury and that the Employee is fit to return to work and to perform the duties of his/her job. If there are any restrictions, conditions or qualifications which affect the Employee's ability to perform the duties of his/her job, such restrictions, conditions or qualifications must be disclosed in the written medical documentation which is presented by the Employee .

. An Employee will be reimbursed by the Company for any money spent by the Employeeto obtain the medical documentation. The Employee must, as a condition of payment, supply to the Company satisfactory written proof of the amount paid.

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ARTICLE 27- HEALTH AND WELFARE

27.01 The Company will pay one hundred percent (1 00%) of the premiums payable under the following Plans on behalf of all eligible Employees and their Dependents as defined by the Plans. The phrase "eligible Employees" shall mean Employees who are the principal wage earners in their respective households and Employees who satisfy the requirements of the Plan for coverage by the Company.

(1) Ontario Health Insurance Plan (OHIP)

In the event that the Ontario Government returns to a premium based health care system, the Company agrees to pay the premiums on behalf of its eligible Employees who have completed thirty (30) calendar days of employment. The premiums shall be paid on the first day of the month next following completion of thirty (30) calendar days of employment.

(2) Semi-private Hospitalization The premiums shall be paid on the 1st day of the month next following completion of sixty (60) calendar days of employment.

(3) Green Shield Prescription Plan ($3.00- co-pay)

The premiums shall be paid on the 1st day of the month next following completion of sixty (60)calendar days of employment.

Provide Green Shield Extended Health coverage at eighty percent (80%) benefit as outlined in EHS Offering

Note:

The Company will reimburse an Employee the sum of two dollars ($2.00) upon the Employee presenting the Company with proof of purchase of a prescription and payment of three dollars ($3.00) with respect thereto. Proofs of purchase shall be submitted twice yearly, namely, during the week ending June 30th and during the week ending December 31st, in each year.

The above note, for the two dollar ($2.00) reimbursement, will not apply effective January 1st, 2003 .

. ( 4) Out-Of-Province Coverage

Effective September 1, 1995, the premiums shall be paid on the 1st of the month next following completion of sixty (60) calendar days of employment.

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27.02 The Company shall pay the premiums for the following benefits for all Employees:

Group Life Insurance- in the amount of thirty thousand dollars ($30,000); thirty-five thousand dollars ($35,000) effective October 151

, 1997; forty thousand dollars ($40,000) effective July 151

, 1999, for all Employees. This coverage is to be effective upon the issuance to the Company by its Insurers of a Group Life Insurance Policy providing for the stated amount of insurance; provided, however, that on an individual Employee basis such coverage will, subject to the foregoing, be effective on the 1st of the month following ninety (90) calendar days of employment.

27.03 The Company shall provide and pay for the following benefits for all Employees:

(a) Weekly Indemnity

Employees who are absent from work due to injury, accident or illness which is not covered under Worker's Compensation or any liability or other insurance claim shall receive 66 2/3% of their normal straight time hourly earnings up to a maximum of twenty-six (26) weeks commencing with the first day of accident or injury and the fourth day of illness. Employees shall be covered on the first of the month following the completion of their probationary period. A claim under this Article must be substantiated by a medical certificate. Notwithstanding the provisions hereof, no payments shall be made hereunder during the annual vacation shutdown. To be eligible for payment, the Employee must submit a completed Weekly Indemnity Form and the Employee must be totally disabled from performing work at the Company for which the Employee is qualified. An Employee who misses work and is on Weekly Indemnity and who returns to work prior to the expiration of the twenty-six (26) weeks and again goes off work with the same injury, accident or illness within sixty (60) days of the date of return to work, will be considered on the same claim, subject to the twenty-six (26) maximum period of coverage. If an Employee goes back off work during the first sixty (60) calendar days after returning to work for a different injury, accident, or illness or for the same accident, injury, or illness after sixty (60) calendar days, it will be considered a new claim, and the Employee will be entitled to the full twenty-six (26) week entitlement.

(b) Weekly indemnity as set forth in paragraph ( 1) above shall not apply to those present Employees of the Company to whom the special weekly indemnity provisions apply.

(c) Optical Plan

The Company will pay up to a maximum of one hundred and fifty dollars ($150.00) effective July 151

, 1999; one hundred and seventy-five dollars

24

($175.00) effective July 1st. 2000; two hundred dollars ($200.00) effective July 1st, 2001; every twenty-four (24) months for each employee and each eligible dependent of that employee upon being supplied with satisfactory proof of payment of an optical prescription. Dependents shall be as defined in the Income Tax Act of Canada:

(d) Long Term Disability

Effective January 1st, ··1996, seniority Employees who become disabled subsequent to that date will be covered by a Long Term Disability Policy to be purchased by the Company from a recognized Insurer. The Policy will make provision for long term disability benefit commencing the 183'd day of disability and continuing to the age of sixty-five (65) subject to the Employee continuing to be eligible to receive disability payments thereunder. The amount of monthly disability payment will be seventy percent (70%) of the Employees regular straight time monthly wages to a maximum of fifteen hundred dollars ($1 ,500) per month.

(e) Dental Plan- UFCW, Local175 & 6330ntario Dental Benefit Trust Fund

The 9ompany will pay twenty-six cents ($.26) effective July 1st, 2001, per hour for all hours worked by persons covered by the terms of this Agreement into the UFCW Locals 175 & 633, Ontario Dental Benefit Trust Fund.

The Company will pay twenty-seven cents (27¢) effective June 30t\ 2003, and twenty-eight cents (28¢) effective June 30th, 2004, per hour for all hours worked by persons covered by the terms of this Agreement into the UFCW Locals 175 and 633, Ontario Dental Benefit Trust Fund.

27.05 The Company will continue to pay the premiums in respect of the benefits provided in this Article for eligible Employees on leave of absence for the balance of the month in which the leave of absence commences. Thereafter, any Employee on leave of absence who wishes to remain part of the Company's group with respect to these benefits may do so·, subject to the requirements of the Plans, provided he continues to be an Employee of the Company and continues to meet the eligibility requirements of the Plans and provided he pays to the Company the amount of the premium payment in advance of the premium due dates. This privilege will terminate on the tfxpiry of twelve ( 12) months from the commencement of the leave of absence.

27.06 The Company will continue to pay the premiums in respect of the benefits provided in this Article for eligible Employees who are absent from work because of illness or injury for the balance of the month in which the absence commences and for so long as the Employee is in receipt of Weekly Indemnity from the Company, provided

25

the illness or injury resulting in the absence commenced while the Employee was on the active payroll of the Company. Thereafter, any Employee who continues to be absent due to illness or injury and who wishes to remain part of the Company's group with respect to these benefits may do so, provided he continues to be an

·Employee of the Company and continues to meet the eligibility requirements of the Plans and provided he pays to the Company the amount of premium payment in advance of the premium due .dates. This privilege will terminate on the expiry of twelve {12) months from the commencement of the illness or injury.

27.07 The Company will continue the premiums in respect of the benefits provided in this Article for eligible Employees who have been laid off for the balance of the month in which the lay-off commenced. Thereafter, any Employee who has been laid off and who wishes to remain part of the Company's group with respect to these benefits may do so, subject to the requirements of the Plans, provided he continues to be an Employee with the Company and continues to meet the eligibility requirements of the Plans and provided he pays to the Company the amount of the premium payment in advance of the premium due dates. This privilege will terminate on the expiry of twelve ( 12) months from the commencement of the lay­off.

27.08 Each eligible Employee shall be required to advise the Company, in writing, of his/her eligible dependants. Once the Employee's eligible dependants are designated by the employee, there shall be no change to such designation for a period of six (6) months thereafter except where such a change is required due to the death of or due to the birth of an eligible dependant or due to a court order. Any request to change eligible dependants must be in writing.

ARTICLE 28 - PENSION PLAN

28.01 The Company shall pay to such Pension Plan as the Union may designate, in writing, from time to time, on behalf of each seniority Employee, fifty-five cents ($.55) effective August 1st, 1997) for each hour worked by each such Employee to a maximum of eighty (80) hours bi-weekly (eighty and one half (80 ~) hours bi­weekly for Employees on the 2-2-3 schedule). Such payment shall be made monthly and shall be issued to the Union by the 151

h day of the month following the month for which the payment is made.

Increase hourly contributions for hours paid to a maximum of two thousand hours (2000) per year as follows:

July 1st, 2002 -eighty-five cents ($.85) July 1st, 2003 - ninety-five cents ($.95) July 15

\ 2004- one dollar and five cents ($1.05)

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*Fold twenty cents {$.20) of existing COLA into the Pension Plan hourly contribution effective July 1st, 2002.

Such payment shall he made monthly and shall be issued to the Union by the 15111

day of the month following the month for which the payment is made.

ARTICLE 29- JOB POSTING

29.01 In the event of the establishment of a new job classification or in the event of a permanent vacancy in a job classification, the Company will, if it decides to fill such vacancy, post such vacancy for a period of seven (7) calendar days. A copy of the posting will be supplied to the Chief Steward or his designate. Where the Company requires to replace a temporary job such vacancy will be posted and filled person for person. A list of applicants by seniority will be posted within three {3) days of posting closure.

29.02 (a) Notwithstanding sub-article 29.01, it is understood that any vacancy which results from an Employee being absent on leave of absence (including sick leave) for a period in excess of thirty (30) days shall be posted, as a temporary vacancy, in accordance with the foregoing and that the successful Applicant for the posting will revert to hJs former position when the absent Employee returns. It is further understood that the Company may take any steps it considers appropriate to fill the job left vacant by the Applicant for the job posting. A successful applicant for a job posting regarding a temporary vacancy will be paid at the rate of the classification of the temporary posting and shall not be eligible or entitled to apply for any other posted temporary vacancy for a period of six (6) months after he/she was awarded a posted temporary vacancy as provided herein. Where the Company assigns an employee temporarily to a lower rated classification, that individual will retain the higher rate for the duration of the assignment. The six (6) months limitation shall not apply to any employee who is awarded a temporary vacancy and who in fact works the entirety of that posted temporary vacancy. Despite the foregoing, a temporary vacancy with respect to an Employee who has been absent for a period of twenty-four (24) consecutive months shall be posted as a permanent vacancy in accordance with the provisions of this Article.

(b) If an employee filling a temporary job vacancy is absent on leave of absence, including sick leave, for a period in excess of thirty (30) working days, that employee will forfeit the temporary vacancy he/she was filling and will revert to his/her former position when he/she returns to work. If the temporary vacancy is expected to last an additional thirty (30) working days, the Company shall repost for the temporary vacancy position.

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(c) A successful applicant on a permanent job posting, for a period of twelve (12) months, may only bid on a higher _paying job vacancy .

. 29.03 (a) If the posted vacancy is with respect to a vacancy in the Classification of Equipment Maintenance A, Electrician and Group Leader - Facility Services, in determining which of the Applicants, if ahy, is to be selected to fill the posted vacancy, the Company will consider the following factors.

(i) the requirements of the job and the ability and qualifications of the Applicants; and

( ii) seniority

If factor (i) is relatively equal as between two (2) or more applicants, then factor (ii) will govern.

(b) Subject to paragraph (a) above. in all other cases of posted vacancies, the applicant with the most seniority shall be selected to fill the posted vacancy.

(c) In the filling of job vacancies with respect to section 29.03 (a) the Company will:

(i) advise the Union of its intent to post the vacancy;

(ii) highlight the following on the job posting itself: wage rate, shift requirement and essential job requirements.

29.04 If no applications are received or if none of the Applicants are selected, the Company may fill the vacancy in the manner which it considers best.

29.05 An Employee selected to fill a posted vacancy at his/her option may return to his/her former position at any time within fifteen (15) working days, or at the option of the Company, for legitimate reasons, be returned to his/her former position at any time within forty~five (45) working days following his/her selection and, in that event, any Employees affected shall be returned to their former positions. If the Company is still desirous of filling the vacancy, the Company shall then consider the other applicants, if any, who initially applied for the posted vacancy. Such further consideration of initial applicants shall be subject to the terms and provisions of this Article in the same manner and to the same extent as was the initial consideration.

29.06 If a job vacancy notice is posted while an Employee is absent from work on vacation or sick leave, the Chief Steward shall have the right to submit such Employee's name as a candidate for the posted vacancy.

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29.07 Any permanent job vacancy which has been posted in accordance with this Article will be filled within twenty-one (21) calendar days of its being posted, it being understood that the selected Employee must be available to occupy the job within the said twenty-one (21) calendar day period. The job vacated by an employee who is the successful applicant under these provisions will be posted. The next vacancy in sequence resulting from such posting will not be subject to posting.

29.08 Any person who is reclassified to another position or is awarded a new position shall receive written notification as soon as practicable.

ARTICLE 30- HOURS OF WORK AND OVERTIME

30.01 The normal hours of work for Employees who are not working the 2-2-3 schedule shall be forty (40) hours per week made up offive (5) day of eight (8) hours per day, Monday to Friday inclusive. All such Employees will receive time and one-half for all work performed in excess of eight (8) hours a day or forty (40) hours in a week, but not both.

30.02 The normal hours of work for Employees working the 2-2-3 schedule shall be one ( 1) week at thirty-four and one-half (34 :h) hours made up of three shifts of eleven and one-half ( 11 :h) hours each and the following week at forty-six (46) hours made up of four (4) shifts of eleven and one-half (11 :h) hours each. All such Employees will receive time and one-half for work performed in excess of eleven and one-half ( 11 :h) hours during a shift.

30.03 There shall be no pyramiding of premium pay.

30.04 Subject to the provisions of Article 12 it is understood that this Article does not mean that the Company guarantees to provide any number of hours of work per day or per week.

30.05 Work schedules shall be finalized and posted in advance and it is understood that normal work schedules for all Employees will not be changed unless the Employee affected has been given reasonable and proper notice. Except in cases of emergency or in circumstances beyond the control of the Company, the Company will provide Employees with at least:

(a) three (3) full calendar days notice before the day of any change in the posted schedule for 2-2-3 Employees; ·

(b) four (4) full calendar days notice before the day of any change in the posted schedule for eight (8) hour per day Employees.

29

30.06 (a)

(b)

30.07 (a)

When an Employee is transferred from one classification to another or from one work group to another, his work schedule shall be deemed to commence on the first day in the new classification or work group.

It is recognized that 2-2-3 schedule Employees are assigned to work in identified groups, namely, Groups 1, 2, 3 and 4. Employees will not have their Group assignment changed, except as follows:

(1) All such changes are subject to sub-article 30.05.

(2) Employees in Group 1 may be assigned to Group 2, or vice versa.

(3) Employees in Group 3 may be assigned to Group 4, or vice versa.

( 4) Employees may be assigned from Groups 1 and 2 to Groups 3 and 4, .or vice versa. Such assignment will be finalized before December 15 of each year and implemented on the first work shift of the succeeding year and remain unchanged except as provided in paragraphs 2, 3, 4, 5 or 6 hereof.

(5) An Employee transferred to Groups 3 or 4 from Groups 1 or 2, or vice versa, as a result of a Job Posting under Article 29, will, subject to sub-article 29. 05, remain in that Group unless changed in accordance with paragraphs 2, 3, 4, 5 or 6 hereof.

(6) (i) Should a position in Groups 1 and 2 or 3 and 4 become vacant due to an Employee ceasing to be an Employee of the Company and the Company requires an Employee in a different Group, in the same classification, to transfer to fill the vacancy, the Company may so transfer on a one for one basis.

(ii) Should a position in Group 1 and 2 or Groups 3 and 4 become vacant due to an Employee being absent, or known to be absent in excess of seven (7) working days because of illness or injury, the company may substitute a replacement as per Article 30.06 (b) (2) and (3). When such absent Employee returns to work, he/she will return to the position from which the reassigned transferred Employee came and any other affected Employees will return to their former position and Groups.

If an Employee works on his first day off, he will be paid at the rate of time and a half for all hours of work performed on that day. If the same Employee then performs work on his next day off, which is the day immediately after his first day off, then he shall be paid double time for all hours performed on the second day. If an Employee does not perform work on his first day off but

30

does work on his second day off, he will be paid at the rate of time and a half for work performed on his second day off. An Employee who works on his first or second day off will receive a minimum of (4) hours at appropriate pay rate for each day off so worked.

(b) Employees on the 2-2-3 schedule- Employees will be paid time and a half for hours worked during the first day worked of any three day off period and double time for hours worked in either the second or third day worked in said period. An Employee who works on his first or second or third day off will receive a minimum of four (4) hours at appropriate pay rate for each day off so worked.

(c) Any employee who is called in by the Company for any meeting including safety meetings or for training purposes during the employee's off shift shall be paid a minimum of four (4) hours at their regular hourly rate or if the meeting, training, etc, is longer than four (4) hours then the employee will be paid at the rate of one and a half times (1 %) the employee's hourly rate of pay.

(d) For paragraphs (e) and (f) below, the phrase "calendar week" shall mean the seven (7) consecutive days commencing Sunday and ending the following Saturday.

(e) Employees who work the 2-2-3 schedule and who work four (4) shifts in a calendar week will not be required to work overtime in that calendar week.

(f) · Employees who work the 2-2-3 schedule and who work three (3) shifts in a calendar week will not be required to work more than six (6) hours of overtime in that calendar week.

30.08 All twelve (12) hour shifts (except for Employees in the classification of Custodian) · will commence at 6:00a.m. or at 6:00p.m.

ARTICLE 31 - REST PERIODS

31.01 It is agreed that Employees shall receive during the course of each seven and one­half (7 %) oreight (8) hour shift, two (2) rest periods of fifteen (15) minutes each which shall be scheduled at approximately the mid-point of each half shift. During a twelve ( 12) hour shift, there shall be a third fifteen ( 15) minute rest period.

31

ARTICLE 32- BULLETIN BOARDS

32.01 Nothing shall be ·posted on any bulletin board without same having been firstly submitted to the Manager of Human Resources, or his designate, for approval, which approval will not be arbitrarily withheld.

ARTICLE 33- SUBSTANCE ABUSE

33.01 ·The Company will grant a leave of absence, as hereinafter provided, to a seniority Employee who requires a leave of absence to enroll in a substance abuse (excluding tobacco) program at a recognized substance abuse facility. A seniority Employee is only eligible to apply for and to be granted such a leave of absence twice during that Employee's employment with the Company. A seniority Employee who requests such a leave of absence must make written application therefor and must submit to the Company, with the written application, written medical documentation from a qualified physician confirming that he/she has a substance abuse problem (excluding tobacco) and that he/she requires a leave of absence to enroll in a substance abuse program at a recognized substance abuse facility. The leave of absence, if granted, will be for the length of the program, not to exceed twenty-six (26) weeks. During the leave of absence, the Employee will be paid in accordance with the Company's Weekly Indemnity Plan and his/her health and welfare benefits as listed in Article 27 will be ·continued subject to the terms and provisions of the Plans pursuant to which the health and welfare benefits are provided. If the Employee does not complete the program, the leave of absence, weekly indemnity payments and health and welfare benefits will cease on the day the Employee quits or leaves the program. Employees who complete the program will be encouraged to participate in any follow up requirements.

ARTICLE 34- DURATION OF AGREEMENT

34.01 This Collective Agreement shall remain in full force and effect from the 151 day of July-2002, until the 30th day of June, 2005, and it shall be automatically renewed from year to year thereafter unless either party gives to the other party written notice of its desire to terminate or amend the terms of this Agreement within a period of sixty (60) days prior to the termination of this Agreement.

34.02 The Collective Agreement between the parties which immediately preceded the within Collective Agreement expired on the 30th day of June, 2002, and had as its term of operation the 1st day of July, 1999, to and including the 30th day of June, 2002. Any provision of that prior Collective Agreement which has been altered or amended by the within Collective Agreement or any provision of the within Collective Agreement which is not contained in that prior Collective Agreement shall be deemed to take effect as of the 1st day of July, 2002, except as otherwise provided in this Collective Agreement.

32

34.03 Within three (3) months of the effective date of the Agreement, a booklet form of the Collective Agreement will be provided, one (1) for each employee, and additional copies to the Chief Steward. The Company agrees to pay fifty percent (50%) of the cost of the printing of the Collective Agreement booklets.

IN WITNESS WHEREOF the parties hereto have executed this Agreement on the~ day of Jul , 2002.

Chris Kotevich, Quality Manager

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175 #175

33

SCHEDULE "A" -WAGE RATES CLASSIFICATIONS JULY 1, 2002 JULY 1, 2003 JULY 1, 2004

Sorters $14.83 $15.08 $15.33 After one (1) month $15.07 $15.32 $15.57 After three (3) months $18.90 $19.15 $19.40

Equipment Maintenance "A" $15.75 $16.00 $16.25 After six (6) months $17.15 $17.40 $17.65 After one (1) year $20.45 $20.70 $20.95 Papers or five (5) years exp. $21.45 $21.70 $21.95 Papers or ~ix (6) years exp. $22.45 $22.70 $22.95

Equipment Maintenance 'B" $15.03 $15.28 $15.53 After three (3) months $16.05 $16.30 $16.55 After six (6) months $19.45 $19.70 $19.95

Machine Operator $15.70 $15.95 $16.20 After one (1) month $16.40 $16.65 $16.90 After six (6) months $17.30 $17.55 $17.80 After one .(1) year $20.10 $20.35 $20.60

Gel/Utility $15.33 $15.58 $15.83 After three (3) mo,pths $17.33 $17.58 $17.83 After nine (9) months $19.35 $19.60 $19.85

Shipper-Truck Driver $15.16 $15.41 $15.66 After one (1) month $16.08 $16.33 $16.58 After three (3) months $18.93 $19.18 $19.43

Printer $15.18 $15.43 $15.68 After three (3) months $16.20 $16.45 $16.70 After six (6) months $19.35 $19.60 $19.85

Quality Control Checker $15.33 $15.58 $15.83 After one (1) month $15.47 $15.72 $15.97 After three (3) months $19.35 $19.60 $19.85

Custodian $14~83 $15.08 $15.33 After three (3) months $15.85 $16.10 $16.35 After six (6) months $18.90 $19.15 $19.40

Quality Control Printer $15.58 $15.83 $16.08 After one (1) m~:mth $15.72 $15.97 $16.22 After three (3) months $19.60 $19.85 $20.10

Printer Set-up Repair $15.30 $15.55 $15.80 After six (6) months $16.70 $16.95 $17.20 After one (1) year $20.00 $20.25 $20.50

Electrician $17.50 $17.75 $18.00 After six (6) months $18.90 $19.15 $19.40 After one ( 1) year $22.20 $22.45 $22.70 After five (5) years $23.20 $23.45 $23.70 After six (6) years $24.20 $24.45 $24.70

Group Leader/Facility Services $26.20 $26.45 $26.70

34

SHIFT PREMIUM

Eligible Employees will be paid a shift premium of seventy cents (70¢) effective July 71h,

2002; seventy-five (75¢) effective July 4th, 2004, per hour for each hour worked on any shift which commences at or after 6:00p.m. on any day and which ends prior to 6:00a.m. on the day following.

MAINTENANCE A & ELECTRICIANS

Employees employed in the Maintenance A/Electrician classifications who have Machinists, Machine Repair Journeymen Papers or Journeyman Electricians papers or have five (5) years experience in this classification shall receive a premium of one dollar ($1.00) per hour, and for six (6) years of experience an additional premium of one dollar ($1.00) per hour for a maximum total of two dollars ($2.00) per hour for all hours worked in such classification.

"'"' Additional wage adjustment to Maintenance "A" & "B" of ten cents ($.10) in the first year

COST OF LIVING ALLOWANCE

Fold in to the Pension Plan hourly contribution twenty cents ($.20) of the current COST -OF LIVING ALLOWANCE as per the following schedule:

Date July pt, 2002

Fold in Amount $0.20

A Cost of Living Allowance shall be paid quarterly commencing in September, 2002, based upon the Consumer Price Index published by Statistics Canada (1971 = 100).

The Allowance shall be paid in a lump sum as soon as may be practicable during the month of payment hereinafter set forth and shall be calculated upon all hours worked during the pay periods ~nding during the three (3) calendar months next preceding such month of payment. ·

MONTH OF· PAYMENTS

September, 2002

December, 2002

BASED UPON ALL HOURS WORKED DURING THE PAY PERIODS ENDING DURING THE FOLLOWING INTERVAL OF TIMES

June 1 , 2002 to August 31 , 2002

September 1 , 2002 to November 30, 2002

35

and at three (3) calendar months thereafter until June, 2005

and thereafter based upon all hours worked during the pay period ending during the three (3) months next preceding the month of payment

The Cost of Living Allowance to be paid in accordance with the foregoing shall be calculated on the basis of one cent ( 1 ¢)adjustment for each 0.5 increase in the Consumer Price Index published by Statistics Canada for the month next preceding the month of payment as aforesaid over 393.3; by way of example, the allowance required to be paid in September, 2002, shall be based'upon the C.P.I. published for August, 2002, and calculated on the basis of one cent (1 ¢) adjustment for each 0.5 increase in the C.P.I. published for August, 2002, over 393.3.

The foregoing formula shall be applied for all Cost of Living Allowance calculations up to and including the Cost of Living Allowance to be paid in June of 2005, which payment will be based upon the increase in the C.P.I. published for May of 2005, over 393.3.

The continuance of the Cost of Living Allowance shall be contingent upon the availability of the official monthly C.P.I. calculated on the same basis and in the same form as that published in 1971.

ELECTRICIANS WHO ARE REQUIRED TO CARRY A BEEPER WHILE OFF COMPANY PREMISES

Employees in the classification of Electrician will be paid fifty dollars ($50.00) (seventy-five dollars ($75.00) effective July 1st, 1998) for each calendar week that such Employees are required, by the Company, to carry a "beeper" while not on Company premises.

36

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARDCAPsuLE•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED .FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: HOURS OF WORK

This will confirm the Company's agreement to endeavor to continue to provide forty (40) hours of work to those Members of the Bargaining Unit who were working thirty-seven and one-half (37 "h) hours weekly. We confirm our further agreement that it will be necessary, in order to accommodate a forty ( 40) hour work week for these people, to require from time to time an Employee of one classification to work in another classification for a limited period of time. The Company agrees that in selecting the Employee, or Employees, to be so transferred, should an employee notified to be transferred for this purpose object to being transferred, then the Company will direct the Employee with the least seniority in the department or in the classification involved to transfer and it is agreed that such Employee is obliged to transfer as directed by the Company. It is understood and agreed that any Employee selected to be transferred must possess the necessary qualifications, skill and ability to perform the work to be done.

Dated this ---!-=----- day of January 1 1994.

Reaffirmed dated this _.:::::.3r_d ___ day of _.=.;Ju=.:.J.L...-_________ , 2002.

SIGNED FOR THE UNION:

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARDCAPSULE'

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: EMPLOYEES ON SHIFT FILLING IN FOR ABSENT MACHINE OPERATORS OR GEL/UTILITY PERSON

In the event that a Machine Operator or Gel/Utility person is absent for more than one-half (Y2) of a shift and is not replaced, the following payments shall be made:

(1) If one (1) Machine Operator is absent and not replaced, the remaining three (3) Machine Operator will each receive fifty dollars ($50.00).

(2) If one (1) Gel/Utility person is absent and not replaced, the remaining three (3) Gel/Utility persons will each receive fifty dollars ($50.00) _

Dated this ___:::t:.3_rd ____ day of --"'-Ju=l-'-y ___ , 1995.

Amended dated this _...::3:._rd ____ day of July 12002

SIGNED FOR THE UNION:

38

BETWEEN:

LETTER OF UNDERSTANDING

RpScherar HARoc••suLE •

DIVISION OF ~.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: WAGES- UNION NEGOTIATING COMMITTEE

This letter will confirm our agreement that the Members of the Union Negotiating Committee (up to a maximum of three (3)) will be indemnified by the Company to the extent of their regular straight time rates times the number of hours of regularly scheduled work lost by them by reason of their being engaged in the negotiation of a renewal of the Collective Agreement.

It ··is further agreed that should an Employee's normal work schedule commence immediately after or end immediately before a negotiating session, the Employee affected may request time off from the shift. Any wages lost as a result of this absence shall be shared equally by the Union and the Company.

The Employer and the Union will share the cost on a 50/50 basis of the meeting rooms for all negotiations.

Dated this ---!.1=01_h ____ day of January '1994.

Amended dated this --=----- day of ---=-J=ul:..~-y _____ , 2002

NION:

39

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARocAPsuLe•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: COURSES OF INSTRUCTION

Any Employee who attends at a recognized Institution of Learning and who enrolls in and completes courses of study in the subjects listed below will, upon successful completion of each such course of study, be reimbursed by the Company the amount paid for tuition and for text books required to be purchased to attend such course of study.

As a condition of payment, the Employee must obtain the approval of the Company before he commenced the course of study and deliver to the Company bona fide receipts regarding the payment of tuition and the purchases of the text books. The Company, in its sole discretion, will determine the number of Employees to be approved from time to time.

Courses of Study:

1. General Machinist 2. Industrial Electrician 3. Industrial Mechanic Millwright 4. Plumber 5. Refrigeration and Air-Conditioning Mechanic 6. S.P.C. 7. Employee Relations/Supervisor Skills 8. Job related computer skills

Dated this ~1~0_1n ________ dayof JanuaN I 1994,

Amended this ~ day of~. 1999

Reaffirmed dated this --~3-rd _______ day of July '2002.

40

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARocAPsuLe•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: SUB ARTICLE 27.01 (3)

It is agreed that the Company has the right to obtain the coverage currently being obtained by the Company from Green Shield from any other carrier provided that the coverage currently provided by the Green Shield Plan is not reduced in any way and provided that such coverage is usable "province-wide".

Dated this ____ day of ________ , 1994

Reaffirmed dated this -=-----day of -=Ju=l.__ ________ , 2002.

41

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HAADCAPsuLE •

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: FUNCTION ROTATION OF EMPLOYEES IN THE GEL/UTILITY CLASSIFICATION

Commencing July 1st, 1995, at the end of each calendar month, Employees in the classification of Gel/Utility will rotate (subject to training, when possible) among the following .functions in the following order:

1. Maker 2. Cutter 3. Washer

The rotation will be done in such a way as to not alter the Employee's shifts on schedule.

Employees in the Gel/Utility classification will, if requested, attend to a maximum of two (2) days off in order to be trained and such employees will be paid applicable overtime for all hours worked on the day(s) off.

Existing employees in the classifications of Gel/Utility, newly hired employees in that classification and existing employees who transfer into that classification will be trained in the three (3) functions noted above.

Commencing January 151, 1996, employees in the classification of Gel/Utility will rotate in

the order above on a calendar month basis.

Dated this ----=3::....rd ____ day of -----==J=u:..!.Jiy.__ _________ , 1995.

Reaffirmed dated this

N: SIGNED v THE ~OMPJ,

'J~C.~ .. 42

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HAAocAPsuLE•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTE~NATIONAL LOCAL 175

RE: SHIFT TRADES

The Company confirms that it will, for the duration of this Collective Agreement, continue its present practice regarding shift trades.

Dated this __ 3:...1.:.......5_1 ___ day of July 1 1997.

Reaffirmed dated this -----'3"'--rd ___ day of -J=u=l '-----------· 2002.

SIGNED FOR THE COMPANY:

(1/a_f

43

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARoCAPsucE•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: OVERTIME

If the Company requires employees to work overtime, the following procedure will be used:

1. Overtime will be distributed by seniority in the classification.

2. Overtime will be solicited within the classification as follows:

(a) If the need for the overtime is known at least seven (7) calendar days i'n . advance of when the overtime is to be worked, by means of a posted list which list will be taken down four (4) days before the overtime is to be worked; or

(b) In all other situations where the Company needs employees to work overtime, in person or by telephone by the Steward or Union designated person(s).

3. If employees are still required_, the Company will force within the classification.

4. If after force, there are employees still required, then overtime is being solicited plant wide by ability and seniority from the group on shift when overtime is being solicited.

5. If solicitation plant wide is exhausted, the Company will force plant wide by ability and seniority from the group on shift when the overtime is being solicited.

44

(Continued)

BETWEEN:

LETTER OF UNDERSTANDING

RpScharer HARocAesuLE•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: OVERTIME

6. The first employee who accepts overtime by phone or in person shall be assigned the overtime and shall be responsible to work the overtime an cannot be subsequently displaced by another more senior employee subsequently calling back to accept such overtime.

7. An employee who signs up for overtime in accordance with paragraph 2 (a) above and who is assigned that overtime shall be responsible to work that overtime.

8. An employee who has been by-passed through honest error in being offered overtime hours as per the overtime equalization program, will be assigned an equal amount of overtime work within ten (10) calendar days to make up for the overtime missed by the improper assignment.

Dated this _.....:3:::....;1'-st ____ day of _ __!J!..:=u:!.;lyL..-____ , 1997.

Amended dated this --=3'-rd ____ day of _ ____!:!.J::::.ul:...r..Y------' 2002.

.-

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARocAPsuLe•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: UNION OFFICE

The Company will designate the small office by the employee entrance door to be used exclusively by gj.! Union Stewards and the Health and Safety Committee Members

The office will be equipped with a table and two (2) chairs and an appropriate locking file cabinet.

Dated this -=51_h ___ day of __ A:....:u=g~u=s:..:..t ----~ 1997.

Amended dated this 4th day of May I 1999.

Reaffirmed dated this -=3r_d ___ day of July I 2002.

SIGNED FOR THE COMPANY:

1/C~

46

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARDCAPsuLE•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: OVERTIME EQUALIZATION & OVERTIME

The following procedures will apply to "POSTED OV.ERTIME ONLY" all other overtime will be solicited in order of seniority.

1. All posted overtime will be distributed fairly among seniority employees within each classification on a shift by shift basis.

2. Posted overtime that is not signed for will be deemed as refused overtime and charged to all employees in that classification on the specific groups. Posted overtime refused shall be recorded as overtime offered.

3. A seniority employee who is absent from work due to illness, injury, vacation or any approved absence will be charged with all posted overtime offered in their classification on their group for those days.

4. An employee will not be eligible for posted overtime on an approved scheduled vacation day.

5. New employees or employees transferred from one ( 1 ) classification/group to another will be credited with the average number of overtime hours of the employees in that classification/group.

6. Posted overtime will be offered to employees on the basis of low overtime hours, however, if the hours are at zero or equal, overtime will be offered in order of seniority.

47

(Continued)

BETWEEN:

LETTER OF UNDERSTANDING

RpScherar HARoc•esuLe•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: OVERTIME EQUALIZATION & OVERTIME

7. At the end of each calendar year, the low person with overtime shall start at zero hours and the sequence of low overtime hours shall dictate the sequence of the overtime list with the difference of the hours:

Example

Operator #1 Operator #2 Operator#3

December 31 5\ 1999

100 hours 97 hours 95 hours

January 15\ 2000

5 hours 2 hours 0 hours

8. Any overtime hours offered outside of the classification shall not be charged hours.

9. Lists for posted overtime will be displayed showing classification, employee's name, seniority and number of hours offered to each employee.

Dated this _______ day of __________ , 2002.

SIGNED FOR THE COMPANY:

1;!~

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARocAesuLE•

DIVISION OF R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: ADDITIONAL PAYMENTS INTO THE PENSION PLAN

The Company agrees to pay, on behalf of its active employees, the following lump sum payments into the Pension Plan (CCWIPP):

on or before June 30, 2002 - $36,000.00 on or before July 30, 2002 • $18,000.00 on or before July 30, 2003- $18,000.00 on or before July 30, 2004- $17,030.00

The Company will be accountable for any outstanding interest payment for the period of July 31st, 2003, to July 30, 2004. The Company further agrees that in case of plant closure the above payments as stipulated will be paid out in full.

In consideration of the foregoing payments, the Union agrees that it will not, prior to July 151, 2004.

in collective bargaining negotiating, or otherwise, request any amendments to Article 22 {Paid Holidays) so as to provide holiday pay on the basis of eleven and one half (11 Y2) hours as opposed to the current basis of seven and one half {7 Y2) or eight {8) as may be applicable.

The provisions hereof can onlybe amended by mutual agreement, in writing, between the Company and the Union.

Dated this _..::::5_1h ____ day of _---!....;A:..=U..:::~.9:US~t'-----• 1997.

Reaffirmed dated this _...;:;_ ____ day of July '2002.

49

BETWEEN:

LETTER OF UNDERSTANpii\IG

RpScherer HAeocAPSULE•

DIVISION OF.R.P. SCHERER CANADA INC.

UNITED FOOD AI\ID COMMERCIAL WORKERS INTERNATIONAL'LOCAL 175

RE: UFCW, LOCAL 175 TRAINING & EDUCATION FUND

The Employer agrees to contribute three cents ($.03) per hour commencing July 1st, 2003, and four cents ($.04) per hour commencing July 151

, 2004, to the UFCW, Local 175, Training & Education Fund for all regular hours worked to bargaining unit employees .

. The Employer shall forward the contributions every four (4) weeks to the Union and shall include a list·of the bargaining unit employees and the number of hours worked by each employee during the four (4) week period.

Dated this --=3r'-=d=-------- day of --~J~u.!.ll _________ , 2002.

SIGNED FOR THE COMPANY:

J(c_P"L·

50

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARoc••suLE'

DIVISION OF·R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: DIRECT DEPOSIT

The Company informed the Union it intends to achieve one hundred percent (100%) employee participation in a direct deposit program.

Effective with this new Collective Agreement, all new employees will be enrolled in the direct deposit program. All current participating employees shall not be permitted to withdraw. Those not currently enrolled will be encouraged to participate.

Dated this _4_,_t_h ____ day of May '1999.

Reaffirmed dated this _..:::3_rd ____ day of _..:J.::.ul,_.__ _________ , 2002.

SIGNED FORT~

]/ . "

. 51

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARDCAPSULE•

DIVISION OF·R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: HOURS OF WORK AND OVERTIME

The Company and the Union discussed an alternative work schedule from the current 2-2-3 arrangement.

To this end the parties agreed to establish a joint union-management Ad Hoc Committee to review and propose a more desirable work schedule. Such proposal will not be mutually withheld as long as the cost of the proposed work schedule is in line with the current arrangement and does not interfere with operational effectiveness.

The target date for any potential changes to the work schedule resulting from the above committee's proposal is January 1st. 2000.

Dated this 4th day of _ ___:.M.::.:.a=-y..___'--, 1999.

Reaffirmed dated this _...;:::3~rd ____ day Of _...:::J..:U:..zl ----------' 2002.

SIGNED FOR THE COMPANY:

1L~-

52

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARDCAPsuLE •

DIVISIOI\1 OF-R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: UFCW CHARITY FUND

The employer shall deduct from the weekly earnings of each employee, upon written authorization from each employee, twenty-five cents ($.25) per week and shall, together with a detailed list of the names, Social Insurance Numbers and amount deducted, remit same by cheque payable to the UFCW Charity Fund before the fifteenth (15th) day of the following month. The amount selected. will remain unchanged for a period of one (1) year.

Receipt for the total amount deducted per employee in the calendar year will be provided by the Union on or before February 28th, of each year, or noted by the Employer on the employee's T4 slip.

Dated this --=3r"-=d=----- day of -----=J=u~l _________ , 2002.

SIGNED FOR THE COMPANY:

~

53

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARDCAPSULE•

DIVISION OF-R.P. SCHERER CANADA INC.

-and-

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: RETURN TO WORK COMMITTEE

The parties agree to establish a return to work committee consisting of the Union's certified Health & Safety Representative, a member of management and the injured worker.

The purpose of the committee is to make recommendations in facilitating the injured workers return.

Dated this _ ____,3::.:...rd=---- day of --~J=u''-1----------· 2002.

SIGNED FOR THE COMPANY:

54

BETWEEN:

LETTER OF UNDERSTANDING

RpScherer HARoc••suLe•

DIVISION OF-R.P. SCHERER CANADA INC.

UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 175

RE: TIME LIMITS

Neither party shall raise or proceed with a timeliness issue argument regarding "filing for arbitration" without having notified the other party of its final position on any given grievance in writing.

Should either party serve such notice on the other party, the parties further agree that the final time frame in the Collective Agreement respecting "filing for arbitration" shall then be

·triggered.

Dated this ----~3r~d~ ___ dayof ____ ~J=u~l~ _________________ ,2002.

SIGNED FOR Tc:£.:

1!_~

55