Document:

f8kex10xv_pioneer.htm

     

    Exhibit
10.15

     

    
      AGREEMENT

       

      FOR

       

      AUTHORIZED SALES
REPRESENTATIVES

       

      This
agreement made this 19th day of September 2003, by and between Pioneer
Transformers LTD (“PT”) in Granby, Quebec Canada, having its principal place of
business at 612 chemin Bernard, Granby, Quebec, Canada, and it’s Sales
Representative,

      

      

      AESCO
Associates LTD

      

      

      The post
office address of which is:

      

      

      14 Becks
Way

      Dartmouth,
N.S.

      B2V
2C3

      

      

      

      

      

      (Hereinafter
called the “Sales Representative”).

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      In
consideration of the covenants and conditions herein contained, PT and the Sales
Representative mutually undertake and agree as follows:

       

      ARTICLE 1 –
DEFINITIONS

       

      As used
herein:

       

      1.1           The
term “The Territory” shall mean:

       

      The
Province of New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island
The term “The Market” shall mean:

       

      All
electrical generating and electrical distribution utilities, industrials and
electrical distributors.

       

      Product
excluded:  Liquid Filled Network Transformers

       

      1.2           The
term “PT” shall mean Pioneer Transformers LTD

       

      
        	
                1.3

              	
                The
      term “sales credit” shall mean the value of billed sales acknowledged by
      PT to have been procured by the Sales Representative pursuant to the terms
      and conditions contained in this Agreement, less any sales taxes, duty,
      brokerage, freight, cost of bid bonds or performance
  bonds.

              

      

       

      ARTICLE 2 –
APPOINTMENT

       

      AESCO
Associates LTD is hereby appointed an authorized Sales Representative for
PT and is authorized to solicit orders for PT products within the Territory
under the terms and conditions herein described.  It is understood
that this appointment shall be exclusive to both parties for the Territory and
Markets as previously described.

       

      ARTICLE 3 –
ORDERS

       

      
        	
                3.1

              	
                Orders
      for PT products which have been placed with the Sales Representative shall
      be promptly forwarded to PT in Granby, Quebec with a copy to Mississauga,
      Ontario for review.  Such orders shall not be binding on PT
      until accepted by PT in writing or by the issue by PT of an official order
      acknowledgment.

              

      

       

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                3.2

              	
                PT
      reserves the right to reject any order for any reason which it deems
      sufficient, including but not limited to, such reasons as failure to
      conform to PT’s standard terms and conditions of sale, unrealistic
      specified delivery dates and unapproved credit of the
      purchaser.

              

      

       

      
        	
                3.3.

              	
                The
      Sales Representative shall be excluded from entering orders in its own
      name to fill customer requirements.

              

      

       

      
        	
                3.4

              	
                PT
      shall not be liable for any loss or damage caused by late delivery or
      failure to otherwise perform under those orders which it has accepted
      where such delay or non-performance is due to labor disputes, strikes,
      lockouts, inability to obtain materials, fire, acts of God or the public
      enemy, accidents, governmental restrictions or appropriation, or any other
      cause beyond the reasonable control of PT, unless otherwise provided by
      the terms and conditions that have been quoted and accepted by
      PT.

              

      

       

      ARTICLE 4 –
COMMISSIONS

       

      
        	
                4.1

              	
                PT
      shall compute and pay commissions on the value of sales credits earned by
      the Sales Representative in accordance with the rates and conditions set
      forth in Exhibit A annexed hereto and made a part
  hereof.

              

      

       

      
        	
                4.2

              	
                Sales
      credit for sales of PT products and commissions payable thereon shall be
      calculated at the end of each month.  Commissions shall be paid
      monthly, with commission checks being mailed to the Sales Representative’s
      business address shown on the front page hereof, on or about the fifteenth
      day of the month immediately following the month in which the sales
      credits are earned and customer invoices paid.  If the
      commission earned during any given month is less than $100.00, it will be
      held until a minimum amount of $100.00 is reached.  Hold backs
      against commissions payable to the Sales Representative will be made for
      any overdue unpaid PT invoices.

              

      

       

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	
                4.3

              	
                Commissions
      paid will be net billed sales less taxes, duty, brokerage, freight, cost
      of bid bonds or performance bonds.

              

      

       

      ARTICLE 5 – MARKETING
ASSISTANCE

       

      5.1           PT
shall furnish the Sales Representative with:

       

      
        	
                5.1.1

              	
                Reasonable
      quantities of bulletins and such promotional aids as catalogs, circulars
      and technical information, and other publications which PT may have
      available for distribution in connection with the sale of PT
      products.  There shall be no charge for the material furnished
      pursuant to this article 5.1.1.  The Sales Representative’s use
      of the aforementioned materials shall be subject to the terms, conditions
      and limitations of this Agreement.

              

      

       

      
        	
                5.1.2

              	
                Quotations,
      proposals, customer visits, trade show participation, seminar programs or
      special advice as may from time to time be requested by the Sales
      Representative for the purpose of satisfying customer needs and government
      requirements.

              

      

       

      ARTICLE 6 – SALES
EFFORT

       

      
        	
                6.1

              	
                The
      Sales Representative shall use its best efforts to promote the sale and
      use of, and to secure orders for PT products within the Territory and
      Market, so as to create the largest volume of profitable business for PT
      commensurate with the opportunities therefore.  The Sales
      Representative shall promote the goodwill and name of PT, and do
      everything within its capabilities to further the interest of PT, its name
      and PT products including participation in trade shows, seminar programs
      and all sales activities undertaken by PT.  It shall endeavor to
      provide PT with timely feedback on all major tenders.  It shall
      assist PT in furnishing or obtaining, on request, information as to credit
      standing of purchasers or prospective purchasers of PT
      products.

              

      

       

      
        	
                6.2

              	
                The
      Sales Representative shall faithfully observe and comply with PT standard
      policies and procedures where applicable, when soliciting orders for PT
      products or otherwise handling PT business under this
      Agreement.

              

      

       

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      ARTICLE 7 – COMPETITIVE
CLAUSE

       

      During
the term of this Agreement, the Sales Representative shall not directly or
indirectly handle, deal or become interested in the manufacture, marketing or
selling of products which are similar in kind, character and/or use to PT
products.  The Sales Representative shall not directly or indirectly,
provide any competitor of PT with PT product bulletins, special advices, PT
products or other similar information and material which may be of competitive
value.

       

      ARTICLE 8 – PROPERTY OF
PT

       

      Any
property of PT received by the Sales Representative shall be and remain the
property of PT and, upon request, shall be returned in as good condition as when
received, ordinary wear and tear excepted.  All records or papers of
any kind relating to PT’s business shall be and remains the property of PT and
shall be surrendered to PT upon demand or termination of this
Agreement.

       

      ARTICLE 9 – LIMITATION OF
POWER

       

      The Sales
Representative’s authority to act as a representative of PT is strictly limited
to those powers expressly conferred herein.  The Sales Representative
shall have no authority nor shall it hold itself out as having such to make
contracts in the name of or binding on PT, pledge PT credit or to extend credit
in its name.  Furthermore, the Sales Representative shall not use the
initials “PT” or PT’s registered trade names or registered trade marks unless
expressly approved in writing.

       

      ARTICLE 10 –
SEVERABILITY

       

      Should
any of the provisions contained herein contravene or be invalid under the laws
of Canada and or the province or other jurisdiction where it is to be performed,
the validity of the remaining portions or provisions shall not be affected
thereby.

       

      ARTICLE 11 –
GOVERNING

       

      This
Agreement shall be construed in and according to the laws of the Province of
Quebec, Canada.

       

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

       

      ARTICLE 12 –
DURATION

       

      
        	
                12.1

              	
                This
      Agreement shall become effective on the date first above written and shall
      continue thereafter in full force and
effect.

              

      

       

      
        	
                12.2

              	
                Either
      party may terminate this Agreement at will without cause by giving the
      other party three (3) month written notice of its intention to
      terminate.

              

      

       

      
        	
                12.3

              	
                In
      the event of a termination of this Agreement, commissions in accordance
      with Exhibit A will be paid on all orders shipped after the
      termination date.  Any quotations for PT products that have not
      been ordered prior to the termination date will not be honored by PT and
      no commission shall be owing or payable with respect
    thereto.

              

      

       

      
        	
                12.4

              	
                Nothing
      in article 12.3 above shall be deemed to entitle the Sales Representative
      to sales credit other than that to which it would be entitled under
      Article 4 hereof.

              

      

       

      
        	
                12.5

              	
                If
      at any time hereafter, either of the parties hereto shall fail to perform
      to the terms, covenants and conditions hereof at the time and in the
      manner herein provided, then the other party may forthwith cancel and
      terminate this Agreement by giving the other party written notice of its
      election to so cancel and terminate this Agreement and such cancellation
      and termination shall become effective upon the mailing or delivery of
      such notice, whichever occurs the earliest.  This right to
      cancel and terminate shall he in addition to any other remedies available
      hereunder or at law.

              

      

       

      ARTICLE 13 –
NOTICES

       

      Any
notice required under this Agreement shall be given in writing addressed to the
respective party at the address indicated on the front page hereof, or at such
other address as the respective party may, from time to time, hereafter
designate in writing.

       

      ARTICLE 14 – CONTRACT
ADMINISTRATION

       

      This
Agreement shall be administered on behalf of PT by its Marketing & Sales
Department in Mississauga.  All questions concerning this Agreement or
PT policy and procedure should be directed to the said Department at 612 Bernard
Road, Granby Quebec, Canada J2G 8E5.  Attention: Raymond Haddad, V.P.
Operation’s.

       

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      ARTICLE 15 – ENTIRE
AGREEMENT

       

      This
Agreement constitutes the only agreement between the parties and supersedes all
previous communications, representations or agreements, whether oral or written,
with respect to the subject matter hereof.  No modification of or
amendment to this Agreement shall be binding upon the parties hereto unless in
writing and duly executed by both parties.

       

      In
Witness Whereof, the parties have executed this Agreement in duplicate on the
dates indicated.

       

      
        
          
            	Sales
      Agency	 	 	Principal	 
	 	 	 	 	 
	AESCO Associates
      LTD 	 	 	Pioneer Transformers
      LTD	 
	 	 	 	 	 
	
                    By:  /s/ 
      Lloyd Macleod

                  	 	 	
                    By: 
      /s/  Raymond Haddad

                  	 
	
                     

                  	 	 	
                     

                  	 
	
                    Date:  September
      23, 2003

                  	 	 	
                    Date: September
      30, 2003

                  	 

          

        

      

       

       

                                                    

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      

       

      EXHIBIT
A

       

      Pioneer Transformers LTD.
Representative Commission Scale.

       

      
        	
                INDIVIDUAL ORDER VALUE

              	
                COMMISSION RATE *

              
	 	 
	
                Up
      to $200,000

              	
                5%

              
	
                $200,001
      to $500,000

              	
                $10,000

                plus
      4.0% on the amount over $200,000

              
	
                $500,001
      to $1,000,000

              	
                $22,000

                plus
      3% on the amount over $500,000

              
	
                $1,000,001
      and more

              	
                $37,000

                plus
      2% on the amount over $1,000,000

              

      

       

      On long
term contracts, the commission rate for the monthly shipments is based on the
total annual dollar value shipped.

       

      1)           If
to obtain an order it becomes necessary for PT to make a reduction in price that
would otherwise apply, or to make some concession involving extra cost, PT may,
prior to acceptance of such an order, request of the Representative that the
commission payable thereon be negotiated to reflect the special circumstances
involved with the order. In such cases, the commission rate specified above
shall not apply.

       

      2)           For
the purpose of determining the size of any order, any proposal to one customer
for similar types of material with a common closing date that results in one or
more purchase orders to facilitate accounting and/or shipments to different
locations are considered to be one total order for the aggregate value of the
different parts.

       

      3)           Orders
with different closing dates but grouped together by the Customer at time of
purchase in order to obtain a value or volume discount will be treated as one
order for the total value of the order.

       

       

       -8-f8kex10xvi_pioneer.htm

     

    Exhibit
10.16

     

    
      TRANSLATION

       

       

       

      

      COLLECTIVE
LABOUR AGREEMENT

       

      between

      

      PIONEER
TRANSFORMERS LTD.

      (hereinafter
the “Company”)

      Of
the first part

       

      and

      THE
STEELWORKERS UNION

      On
behalf of Local 9414

      (hereinafter
the “Union”)

      Of
the second part

      

      

      

      

      

      

      

      JUNE
1, 2005 – MAY 31, 2010

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        TABLE
OF CONTENTS

         

         

         

        
          
            	 	Page
	 	 
	
                    ARTICLE 1 – PURPOSE OF
      AGREEMENT

                  	
                    1

                  
	
                    ARTICLE 2 – UNION
    RECOGNITION

                  	
                    1

                  
	
                    ARTICLE 3 – DISCRIMINATION

                  	
                    1

                  
	
                    ARTICLE 4 – MANAGEMENT

                  	
                    1

                  
	
                    ARTICLE 5 – UNION SECURITY

                  	
                    2

                  
	
                    ARTICLE 6 – GRIEVANCE
    PROCEDURE

                  	
                    2

                  
	
                    ARTICLE 7 – DISMISSAL AND SANCTION
      PROCEDURE

                  	
                    4

                  
	
                    ARTICLE 8 – SENIORITY

                  	
                    5

                  
	
                    ARTICLE 9 – AUTHORIZED
LEAVE

                  	
                    10

                  
	
                    ARTICLE 10 – SAFETY AND
    HYGIENE

                  	
                    11

                  
	
                    ARTICLE 11 – BULLETIN BOARD

                  	
                    13

                  
	
                    ARTICLE 12 – COPIES OF AGREEMENT POCKETBOOK
      FORM

                  	
                    13

                  
	
                    ARTICLE 13 – UNION
      REPRESENTATIVES

                  	
                    14

                  
	
                    ARTICLE 14 – GRIEVANCE COMMITTEE AND
      STEWARDS

                  	
                    14

                  
	
                    ARTICLE 15 – HANDICAPPED
      EMPLOYEES

                  	
                    14

                  
	
                    ARTICLE 16 – UNINTERRUPTED
      PRODUCTION

                  	
                    14

                  
	
                    ARTICLE 17 – WORKING HOURS

                  	
                    14

                  
	
                    ARTICLE 18 – ATTENDANCE
      ALLOWANCE

                  	
                    15

                  
	
                    ARTICLE 19 – SALARIES AND
      CLASSIFICATIONS

                  	
                    16

                  
	
                    ARTICLE 20 – TEMPORARY
    TRANSFER

                  	
                    17

                  
	
                    ARTICLE 21 – OVERTIME

                  	
                    17

                  
	
                    ARTICLE 22 – SHIFT PREMIUM

                  	
                    18

                  
	
                    ARTICLE 23 – STATUTORY
    HOLIDAYS

                  	
                    18

                  
	
                    ARTICLE 24 – VACATION

                  	
                    19

                  
	
                    ARTICLE 25 – BEREAVEMENT
    LEAVE

                  	
                    20

                  
	
                    ARTICLE 26 – INSURANCE PLAN

                  	
                    20

                  
	
                    ARTICLE 27 – INSURANCE AND TRAVEL
      EXPENSES

                  	
                    21

                  
	
                    ARTICLE 28 – TECHNOLOGICAL
      CHANGES

                  	
                    21

                  
	
                    ARTICLE 29 – TERM OF AGREEMENT: 5
      YEARS

                  	
                    21

                  

             

             

            
              
                
                

              

              
                -i-

                
                  

                

              

              
                
                

              

            

             

            
              TABLE
OF CONTENTS

              (continued)

            

             

             

            	 	 	 	Page
	 	 	 	 
	
                    Schedule A-1

                  	
                    –

                  	
                    Classifications and Rates of
      Salary

                  	
                    23

                  
	
                    Schedule A-2

                  	
                    –

                  	
                    Classifications and Rates of Salary – Employees
      Concerned by

                  
	 
      	 
      	
                    Section 19.06

                  	
                    24

                  
	
                    Schedule A

                  	
                    –

                  	
                    Increases In rates of
salary

                  	
                    25

                  
	
                    Schedule B

                  	
                    –

                  	
                    Group Insurance Plan

                  	
                    26

                  
	
                    Schedule B

                  	
                    –

                  	
                    Group Insurance Plan

                  	
                    27

                  
	
                    Schedule C

                  	
                    –

                  	
                    LETTER AGREEMENT

                  	
                    28

                  
	
                    Schedule C

                  	
                    –

                  	
                    LETTER AGREEMENT  MEDICAL
      REPORT

                  	
                    29

                  
	
                    Schedule C

                  	
                    –

                  	
                    LETTER AGREEMENT  EDUCATION
      ASSISTANCE

                  	
                    30

                  
	
                    Schedule C

                  	
                    –

                  	
                    LETTER AGREEMENT  BARGAINING
      COMMITTEE

                  	
                    31

                  
	
                    Schedule C

                  	
                    –

                  	
                    LETTER
      AGREEMENT  SUBCONTRACTING

                  	
                    32

                  
	
                    Schedule D

                  	
                    –

                  	
                    PENSION PLAN

                  	
                    33

                  
	
                    Schedule E

                  	
                    –

                  	
                    LETTER
      AGREEMENT  STUDENTS

                  	
                    36

                  
	
                    Schedule F

                  	
                    –

                  	
                    LETTER
      AGREEMENT  TRAINING

                  	
                    37

                  
	
                    Schedule G

                  	
                    –

                  	
                    LETTER AGREEMENT  COMPRESSED
      SCHEDULE

                  	
                    38

                  
	 
      	 
      	 
      	 
      

          

        

         

         

        
          
             

          

          
            -ii-

            
              

            

          

          
             

          

        

         

        
          
 

        

      

      ARTICLE 1 – PURPOSE OF
AGREEMENT

       

      
        	
                1.01

              	
                The
      parties agree that it is mutually beneficial and desirable to establish
      and maintain fair and just salaries, wages and working conditions to
      achieve efficient and cost-effective operations, protect the security and
      hygiene of the employees and provide for a mechanism to settle any
      grievances that may arise between the parties
  hereto.

              

      

       

      ARTICLE 2 – UNION
RECOGNITION

       

      
        	
                2.01

              	
                The
      Company recognizes the Union as the sole and exclusive bargaining agent
      for all its employees in accordance with the union accreditation
      certificate issued by Commission des Relations du Travail on January 11,
      1967 covering all the employees (paid by the hour) who work at the Granby
      plant who are employees as understood in the Labour Code, except for the
      office employees and
assistant-foremen.

              

      

       

      
        	
                2.02

              	
                The
      clauses and conditions set out in this agreement shall be in force and
      shall fully apply to all the employees in the bargaining unit as described
      in the preceding section.

              

      

       

      
        	
                2.03

              	
                Persons
      whose regular position is excluded from the bargaining unit shall not work
      in any position included in the bargaining unit, except for purposes of
      instruction, experimentation, in an emergency or when the regular
      employees are not available.

              

      

       

      ARTICLE 3 –
DISCRIMINATION

       

      
        	
                3.01

              	
                The
      Company and the Union agree that no employee shall be discriminated
      against or intimidated because of his membership or non-membership in the
      Union, or because of his colour, gender, religion or affiliation with a
      legitimate political party or for any other reason
    whatsoever.

              

      

       

      
        	
                3.02

              	
                Furthermore,
      the Union agrees that neither its officers nor its members shall solicit
      membership in the Union or participate in any other Union activity except
      as set out in this agreement on Company property or during working hours
      unless management grants permission to take part in such
      activities.

              

      

       

      
        	
                3.03

              	
                The
      Company shall not use its workforce management rights in a discriminatory
      manner.

              

      

       

      ARTICLE 4 –
MANAGEMENT

       

      
        	
                4.01

              	
                The
      Union agrees that the Company has the right to manage its business and
      direct its work force subject to the provisions of this
      agreement.

              

      

       

      For
greater certainty but without limiting the generality of the foregoing, such
rights include:

       

      
        	
                 
      

              	
                a)

              	
                maintaining
      order, discipline and efficiency;

              

      

       

       

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                b)

              	
                hiring,
      classifying, promoting and demoting, granting and taking away grades,
      rotating, laying off, recalling and transferring employees and, for just
      and sufficient cause, suspending, dismissing and disciplining
      them;

              

      

       

      
        	
                 
      

              	
                c)

              	
                determining
      the products to be manufactured;

              

      

       

      
        	
                 
      

              	
                d)

              	
                deciding
      on the production methods and schedules, the types and location of the
      equipment, machines and tools to be utilized and, from time to time, the
      number of employees the Company requires for any
  operation;

              

      

       

      
        	
                 
      

              	
                e)

              	
                determining
      whether an individual has the necessary skills and meets the requirements
      for a specific job, subject to the provisions of this agreement and the
      seniority clause.  The Company’s determination of an employee’s
      aptitude and ability to fill the requirements of a job shall be made
      objectively; and

              

      

       

      
        	
                 
      

              	
                f)

              	
                hiring
      qualified employees when necessary to expand the scope of its products and
      its work force, either due to the creation of new positions or new job
      classifications or because there are no qualified employees available to
      do the work.

              

      

       

      ARTICLE 5 – UNION
SECURITY

       

      
        
          	
                  
                    5.01

                  

                	
                  a)

                	
                  
                    It
      is established that as a condition of employment, all employees must
      become and remain Union members in good standing.  New employees
      and employees who are rehired or recalled shall become Union members
      within ninety (90) business days during the six (6) month period following
      their date of hire.

                  

                

        

         

      

      
        	
                 
      

              	
                b)

              	
                The
      employer agrees to make weekly deductions from each employee’s salary for
      the Union dues, initiation fees and special assessments currently in force
      pursuant to the Union’s charter in the amounts specified by the
      Union.

              

      

       

      
        	
                5.02

              	
                It
      is understood and agreed that the Union shall indemnify the Company and
      hold it harmless for any claims that may be made against it by one or more
      employees for the amounts deducted pursuant to this
    Article.

              

      

       

      
        	
                5.03

              	
                The
      T4 and Relevé 1 slips shall
      indicate the total amount of the Union contributions the employee has paid
      in the year.

              

      

       

      ARTICLE 6 – GRIEVANCE
PROCEDURE

       

      
        	
                6.01

              	
                An
      employee and his steward may discuss any grievance with the immediate
      supervisor.  In the employee’s absence, the steward may discuss
      the grievance or, in the steward’s absence, the employee may be
      accompanied by another employee in an emergency.  The supervisor
      must inform the steward or the employee of his decision within one (1)
      business day or within a mutually agreed time
  frame.

              

      

       

      
        	
                6.02

              	
                If
      a settlement cannot be reached under 6.01 above, the grievance shall be
      stated in writing and presented to the Director of Operations or his
      representative within ten (10) business days of the date the cause of
      action arose.  Notwithstanding that deadline, the parties agree
      that all reasonable efforts shall be made to present a grievance as soon
      as possible within less than such ten (10) business days so as to settle
      the grievance as quickly as
possible.

              

      

       

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                6.03

              	
                The
      Director of Operations shall hold a meeting with the Union’s grievance
      committee, which may be accompanied by representatives from the
      International Union, within four (4) business days of the presentation of
      the grievance.

              

      

       

      The
Director of Operations shall inform the Union and the employee or employees
concerned of his decision in writing within five (5) business days of the
meeting or within a mutually agreed time frame.

       

      
        	
                6.04

              	
                The
      Union shall be entitled to file collective grievances or grievances of a
      general nature In accordance with 6.02 above.  Similarly, the
      Employer may file a grievance by addressing the Union office
      directly.

              

      

       

      
        	
                6.05

              	
                If
      a grievance is not settled pursuant to the foregoing sections of this
      Article, either party may give the other written notice of its intention
      to refer the grievance to arbitration in accordance with Section 100 of
      the Labour Code of Province of Quebec, within thirty (30) days of the
      decision by the Director of Operations or his
    representative.

              

      

       

      
        	
                6.06

              	
                The
      procedure and deadlines established under the provisions of Article 6 of
      this agreement shall be firm and may not be amended except pursuant to a
      written agreement between the authorized representatives of the parties in
      question.

              

      

       

      
        
          	
                  
                    6.07

                  

                	
                  a)

                	
                  
                    The
      arbitrator shall hear and resolve the grievance and render an award which
      shall be final and binding on the parties in question and any concerned
      employee, but in no event shall the arbitrator have the authority to
      change, modify or amend any part of this
  agreement.

                  

                

        

         

      

      
        	
                 
      

              	
                b)

              	
                In
      a disciplinary matter, confirm, modify or overturn the employer’s decision
      and, where applicable, substitute such decision as appears to him to be
      fair and reasonable in view of all the circumstances of the
      case.

              

      

       

      
        	
                6.08

              	
                At
      every stage of the grievance procedure, including arbitration, the
      opposing parties may call upon the assistance of the employee or employees
      concerned and any necessary witnesses, and all reasonable steps shall be
      taken to allow the opposing parties to have access to the establishment,
      inform themselves about the contested operations and consult the necessary
      witnesses.

              

      

       

      
        	
                6.09

              	
                Each
      party in question shall share the payment of the arbitrator’s
      expenses.

              

      

       

      The
expenses and allowances of the witnesses shall be paid for by the party that
called the witnesses.

       

      No
arbitration costs shall be awarded to either party.

       

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      The
arbitrator shall be asked to render his award within twenty (20) business days
of the end of the hearing.

       

      
        	
                6.10

              	
                Except
      for grievances of an ongoing nature, the parties shall not be bound to
      consider a grievance unless it is presented within ten (10) business days
      of the date the cause of action arose and in compliance with the procedure
      established in the foregoing
sections.

              

      

       

      
        	
                6.11

              	
                No
      grievance may be presented regarding the dismissal, suspension, lay-off or
      transfer of an employee who has not acquired seniority
    rights.

              

      

       

      ARTICLE 7 – DISMISSAL AND
SANCTION PROCEDURE

       

      
        
          	
                  
                    7.01

                  

                	
                  a)

                	
                  
                    Management
      shall not apply disciplinary measures without first warning the employee,
      unless the circumstances warrant immediate sanction or
      dismissal.  In the event of a claim alleging that an employee
      was wrongfully dismissed or sanctioned, the grievance shall be brought
      directly at the second (2nd) stage of the grievance procedure within ten
      (10) business days of the date the cause of action
      arose.

                  

                

        

         

      

      
        	
                 
      

              	
                b)

              	
                In
      the event of suspension or dismissal, the employee may see the president
      of the Union local or the steward before leaving the
  plant.

              

      

       

      
        	
                7.02

              	
                A
      copy of a written notice remitted to an employee shall be sent to the
      Union steward.  The Company and the Union agree that
      disciplinary sanctions shall not be unjustly
  imposed.

              

      

       

      
        	
                7.03

              	
                In
      certain instances, the Employer may ask to meet with the Union and the
      employee concerned in a final attempt to avoid dismissing the
      employee.

              

      

       

      
        	
                7.04

              	
                During
      a meeting at the third (3rd) stage of a suspension or dismissal grievance,
      the employee may see his disciplinary record upon
  request.

              

      

       

      
        	
                7.05

              	
                A
      written warning or disciplinary measure shall not be valid against an
      employee for more than:

              

      

       

      –    written
warning:                                        6
months

      –    disciplinary
measure:                               12
months

       

      from the
date of the disciplinary measure or written warning.

       

      However,
if other offences within the said time frame warrant a written warning or
disciplinary measure of the same nature, all warnings or disciplinary measures
of the same nature shall remain in force until the last one has passed the
expiry date.

       

      
        	
                7.06

              	
                Disciplinary
      measures and written warnings shall not be issued more than ten (10)
      business days after the employer became aware of the incident, and the
      employer shall bear the onus of
proof.

              

      

       

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

       

      ARTICLE 8 –
SENIORITY

       

      
        	
                8.01

              	
                The
      parties acknowledge that job and security opportunities should increase
      based on length of service.  Accordingly, it is agreed that for
      all vacations, promotions, transfers, lay-offs, terminations and recalls
      after lay-off or termination, the most senior employees shall have
      preference.

              

      

       

      
        	
                8.02

              	
                In
      acknowledgement, however, of management’s responsibility for the efficient
      operation of the establishment, it is understood and agreed that in every
      instance management shall have the right to pass over any employee if it
      establishes that the employee has neither the skill, capacity or physical
      aptitude to perform the work after a reasonable trial period of five (5)
      days.

              

      

       

      
        	
                8.03

              	
                An
      employee shall have seniority status once he has actually worked for
      ninety (90) days with the Company over a period six (6)
      months.  If the employee remains in the Company’s employ after
      working for such ninety (90) days, his seniority shall commence as of his
      date of hire.

              

      

       

      An
employee who has not completed his probationary period and has not yet acquired
seniority status cannot apply for another position.

       

      Seniority
shall be retained and shall accrue during absences due to:

       

      
        	
                 
      

              	
                a)

              	
                a
      lay-off

              

      

      an
illness or accident

       

      
        	
                 
      

              	
                b)

              	
                an
      illness or accident for a period of more than six (6) consecutive months
      with less than one (1) year of seniority; twenty-four (24) consecutive
      months with more than one (1) year of seniority; thirty (30) consecutive
      months with more than five (5) years of
  seniority;

              

      

       

      
        	
                 
      

              	
                c)

              	
                a
      leave of absence.

              

      

       

      
        	
                8.04

              	
                An
      employee shall lose his seniority and his name shall be removed from all
      seniority lists for any of the following
  reasons:

              

      

       

      
        	
                 
      

              	
                a)

              	
                if
      the employee voluntarily leaves his
job;

              

      

       

      
        	
                 
      

              	
                b)

              	
                if
      the employee is dismissed for just
cause;

              

      

       

      
        	
                 
      

              	
                c)

              	
                if
      the employee has been laid off and does not return to work within five (5)
      days of being notified to do so by registered letter sent to his last
      address known to the Company, unless he has a serious and acceptable
      reason.  A copy of such notice shall be sent to the
      Union.

              

      

       

      
        	
                 
      

              	
                d)

              	
                if
      the employee has been laid off due to a work shortage for a period
      exceeding:

              

      

       

      
        	
                 
      

              	
                –

              	
                six
      (6) months if he had less than one (1) year of seniority on the lay-off
      date.

              

      

       

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                –

              	
                twenty-four
      (24) months if he had more than one (1) year of seniority on the lay-off
      date.

              

      

       

      
        	
                 
      

              	
                –

              	
                thirty
      (30) months if he had more than five (5) years of seniority on the lay-off
      date.

              

      

       

      
        	
                 
      

              	
                e)

              	
                if
      the employee is absent due to illness or a non-industrial accident covered
      by a medical certificate he shall continue to accrue seniority while he is
      absent due to the illness or accident, but not
  beyond:

              

      

       

      
        	
                 
      

              	
                –

              	
                six
      (6) consecutive months with less than one (1) year of
      seniority.

              

      

       

      
        	
                 
      

              	
                –

              	
                twenty-four
      (24) consecutive months with more than one (1) year of
      seniority

              

      

       

      
        	
                 
      

              	
                –

              	
                thirty
      (30) consecutive months with more than five (5) years of
      seniority.

              

      

       

      
        
          	
                  
                    8.05

                  

                	
                  a)

                	
                  
                    A
      position shall become vacant due to the death, retirement, quitting,
      dismissal, promotion or permanent transfer of the employee who held the
      position, and also due to the creation of a new job or
      position.

                  

                

        

         

      

      
        	
                 
      

              	
                b)

              	
                If
      the Company decides to fill a position that has become vacant or has been
      newly created in the plant within the bargaining unit, the details of the
      position shall be posted on the plant’s bulletin board for three (3)
      business days.

              

      

       

      A copy of
the notice shall be sent by registered mail to the employees who are absent from
the plant due to illness, accident or vacation to their last known address
appearing in the Company’s books.  Employees who want the position
shall apply in writing during the said period of three (3) business days on the
forms provided for that purpose.

       

      The
posting shall indicate:

       

      1.           The
commencement and ending dates of the posting

      2.           The
title of the position

      3.           The
description of the position

      4.           The
work shift

       

      Within
three (3) business days of the end of the posting the Company shall send the
Union a copy of the posting, with the names of the employees who applied and
indicating the name of the candidate chosen for the position.

       

      However,
it shall be understood that if the employee to be chosen in accordance with this
Article is absent from the plant due to illness, accident or authorized leave in
accordance with this agreement or is on vacation, he must be available to assume
his new responsibilities by no later than fifteen (15) days of the Company’s
notice to begin working, otherwise his candidacy shall be set
aside.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

       

      If the
Company must fill the position in the meantime, it may transfer someone to fill
it temporarily, in keeping with the stipulations of this agreement.

       

      An
employee who obtains a position for which he applied during a posting may not
apply for another position In an equal or lower classification than the one he
obtained for a period of six (6) months.  However, it shall be
understood than an employee promoted to a position and who remains in that
position may always apply for a position in a higher
classification.

       

      
        	
                 
      

              	
                c)

              	
                The
      employer shall grant the employee who is chosen a trial period of five (5)
      business days so he can adapt.  After such five (5) days, if the
      employee does not have the aptitude to continue in the position, the
      employer shall inform him and he shall return to his former
      classification.

              

      

       

      However,
for testers, electrical mechanics and other trades or technical jobs recognized
by the Ministry of Education, management shall not be required to accept the
candidacy of an employee or to give him a trial period if the employer can
establish that the candidate does not have the aptitude required for the
position.

       

      The
qualified employees who held the position of tester as of June 1, 1997 and who
later held another position may return to the position of tester in accordance
with the posting procedure.

       

      
        	
                 
      

              	
                d)

              	
                Temporary
      job postings

              

      

       

      If the
Company wishes to fill a temporarily vacant position, the following procedure
shall apply:

       

      A
temporarily vacant position may be filled temporarily by transfer if it will be
for less than thirty (30) days in cases of illness, accident, occupational
disease or industrial accident in accordance with the procedure described in
Section 8.01 of this agreement.

       

      However,
if the absence is expected to last longer than thirty (30) days or if it exceeds
thirty (30) days, the employer shall post the vacant position in accordance with
Section 8.01 of this agreement.

       

      Within
three (3) business days of the end of the posting, the Company shall send the
Union a copy of the posting with the names of the employees who applied and
indicating the name of the candidate chosen for the temporary
position.

       

      The
chosen candidate must be able to perform the work immediately without any
training; he shall then be transferred directly and temporarily to that position
on the work shift specified In the posting .

       

      
        	
                 
      

              	
                1.

              	
                If
      there is no qualified candidate, the employer may then recall the
      qualified employee with the most seniority back to
  work.

              

      

      
 

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                2.

              	
                The
      employer shall then recall the laid-off employee with the most seniority
      to take over for the qualified employee within two (2) months of the
      beginning of the assignment of the qualified employee to the temporary
      position.  The employee thus temporarily recalled must be able
      to satisfy the normal requirements of the position, in accordance with
      Sections 8.02 and 8.05 c).  He shall then be trained to perform
      the necessary work.

              

      

       

      
        	
                 
      

              	
                3.

              	
                The
      qualified employee shall resume his position on the recall list if the
      more senior employee is able to perform the work
      satisfactorily.

              

      

       

      
        	
                 
      

              	
                4.

              	
                If
      there is no qualified employee on lay-off, the employer shall recall the
      employee with the most seniority in accordance with Sections 8.02 and 8.05
      c).

              

      

       

      If there
is no laid-off or capable employee, in accordance with Section 8.01 the Company
may temporarily hire from outside, but such employees shall be covered by the
provisions of the collective agreement.

       

      In
addition, if an employee has obtained a posting for a position that became
vacant due to illness, accident, occupational disease or industrial accident and
a lay-off is expected, and the employee who obtained the position temporarily is
affected by the lay-off, he shall return to his regular position and avail
himself of his seniority rights.  Similarly, if the position
temporarily obtained is once again filled due to the return of the holder of the
position, he shall return to his regular position.

       

      However,
the period contemplated In the 6th paragraph of Section 8.05 b) shall not apply
to a temporary posting.

       

      
        	
                8.06

              	
                Seniority
      list

              

      

       

      The
Company shall maintain a seniority list in the plant.  Every four (4)
months, it shall post a copy of the list so it can be checked by the
employees.  It shall also give a copy to the Union.  The
said copy shall indicate each employee’s classification and rate of
salary.  The Union shall be advised of the number and dates of new
hires and of the employees recalled to work.

       

      
        	
                8.07

              	
                Lay-off
      notice

              

      

       

      
        	
                 
      

              	
                a)

              	
                In
      the event of a lay-off due a work shortage, the relevant employees shall
      receive five (5) business days’ advance notice unless the lay-off is due
      to a reason beyond the Company’s
control.

              

      

       

      
        	
                 
      

              	
                b)

              	
                An
      employee whose position is abolished or closed or who is required to
      change shifts for an indefinite period shall inform his foreman,
      indicating which employee with less seniority he wishes to bump and, on
      the same day, a copy shall be given to the Union and to the relevant
      employee.

              

      

       

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                c)

              	
                The
      employee who is bumped may in turn bump another employee with less
      seniority than he has and so on, in accordance with the established
      conditions, until a bumped employee can no longer bump another
      one.  He shall then be laid off after five (5) business days’
      notice.  The notice shall be null and void if the employer does
      not go through with the lay-off.

              

      

       

      
        	
                 
      

              	
                d)

              	
                The
      employee assigned to a new position shall have a maximum trial and/or
      training period of five (5) days to demonstrate that he is able to perform
      the work satisfactorily (trial period refers to a person who has already
      done the work and training period refers to a person who has never done
      the work).  If an employee fails to demonstrate such ability,
      the Company shall assign him to another position he is able to fill if
      such a position is available.

              

      

       

      
        	
                 
      

              	
                e)

              	
                Bumping
      procedure for a lay-off involving the elimination of the evening
      shift:

              

      

       

      
        	
                 
      

              	
                1.

              	
                If
      the evening shift is completely eliminated and one or more positions are
      simultaneously opened on the day shift, the following bumping procedure
      shall apply instead of the normal posting
  procedure:

              

      

       

      
        	
                 
      

              	
                2.

              	
                An
      employee whose position is thus eliminated shall notify his foreman,
      indicating which less senior employee he wishes to bump or which vacant
      position he wishes to fill.

              

      

       

      
        	
                 
      

              	
                3.

              	
                If
      the employee bumps another employee, he must satisfy the conditions
      stipulated for a lay-off notice, i.e. Sec. 8.07
  d).

              

      

       

      
        	
                 
      

              	
                4.

              	
                If
      the employee cannot bump another employee, he shall use his seniority to
      choose a position left vacant on the day shift, provided he is qualified
      for the position.

              

      

       

      
        	
                 
      

              	
                5.

              	
                If
      there is no available position for which he is qualified, he shall choose
      another position that could not be filled by a qualified employee and
      shall be trained for the position.

              

      

       

      
        	
                 
      

              	
                6.

              	
                If
      there is no available position in accordance with the procedure described
      in paragraph 5, the employee with more seniority shall have priority over
      an employee with less seniority.  The employee with more
      seniority who satisfies the normal requirements for the position, in
      accordance with Sections 8.02 and 8.05 c), shall be trained for the
      position thus obtained.

              

      

       

      
        	
                8.08

              	
                Position
      reopened following a lay-off

              

      

       

      
        	
                 
      

              	
                1.

              	
                Work
      recalls shall be done inversely to the order of the lay-offs, that is, the
      last employee laid off shall be the first one recalled to work, provided
      he has the necessary qualifications to immediately perform the available
      work.

              

      

       

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                2.

              	
                If
      the last employee laid off is not qualified, the employer may then recall
      the qualified employee with the most
seniority.

              

      

       

      
        	
                 
      

              	
                3.

              	
                The
      employer shall then recall the laid-off employee with the most seniority
      to take over for the qualified employee within six (6) weeks of the
      beginning of the assignment of the qualified employee to the vacant
      position.  The employee thus recalled must be able to satisfy
      the normal requirements for the position, in accordance with Sections 8.02
      and 8.05 c).  He shall then be trained to perform the necessary
      work.

              

      

       

      
        	
                 
      

              	
                4.

              	
                The
      qualified employee shall resume his position on the recall list if the
      more senior employee is able to perform the work
      satisfactorily.

              

      

       

      
        	
                 
      

              	
                5.

              	
                If
      there is no qualified employee on lay-off, the employer shall recall the
      employee with the most seniority, in accordance with Sections 8.02 and
      8.05 c).

              

      

       

      
        	
                 
      

              	
                6.

              	
                An
      employee who is laid off shall be reinstated in the position he held
      before the lay-off, without any posting, provided the position is reopened
      within two years of the lay-off.

              

      

       

      
         

        
          	
                  8.09

                	
                  Change
      of address and telephone number 

                     

                    All
      employees shall be solely responsible for informing the employer in
      writing of any change of address or telephone
  number.

                  

                

        

         

      

      
        
          
            	
                    8.10

                  	
                    Position
      outside the bargaining unit 

                       

                      If
      an employee is promoted or transferred to a position outside the
      bargaining unit, he shall thereupon be excluded from the bargaining
      unit.  The employee shall keep the seniority acquired in the
      position he was transferred from and it shall be credited to him if he
      returns to work in the bargaining unit.  This privilege shall
      expire after one (1) year of continuous service outside the bargaining
      unit.

                    

                  

          

           

        

      

      ARTICLE 9 – AUTHORIZED
LEAVE

       

      
        	
                9.01

              	
                Unpaid
      leave of no more than one (1) day may be granted to any employee by his
      immediate supervisor.

              

      

       

      
        	
                9.02

              	
                Unpaid
      leave for longer periods must be referred to the Director of Operations
      and shall require his approval.

              

      

       

      
        	
                9.03

              	
                No
      unpaid leave shall be granted if the employee’s absence will hinder
      production requirements and/or create additional expense for the
      Company.  This clause shall not apply to Union officials who
      must be absent on Union business.

              

      

       

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      
        	
                9.04

              	
                Leave
      to take care of Union business:

              

      

       

      A maximum
of three (3) employees elected or designated by the Union to attend a Union
convention or business session shall be given unpaid leave for that
purpose.  The Union shall notify the Company one week in advance of
the names of the representatives who, except for the President, must be
representing various departments.

       

      However,
with the exception of the President, the said employees may not be absent for
more than ten (10) business days in a single year.  It is agreed that
this time frame shall not apply to arbitration hearings, the preparation and
presentation of cases to the C.S.S.T., or the bargaining period.

       

      9.05         Leave
to work full-time for the Union:

       

      The
Company shall grant an employee an unpaid leave of absence for up to one (1)
year so he can work for the Union.  The employee must make a written
request at least one (1) month in advance if possible, which request must first
be approved by the Union.

       

      9.06         The
Union agrees that the number and length of such leave shall not be
unreasonable.

       

      9.07         Failure
to return from leave:

       

      Authorized
leave shall be granted in writing and no such leave shall affect an employee’s
seniority rights if used for the purpose for which it was granted, provided the
employee returns to work after his leave.  A copy of the authorization
shall be remitted to the Union representative.

       

      ARTICLE 10 – SAFETY AND
HYGIENE

       

      
        	
                10.00

              	
                The
      Company shall provide the following personal safety equipment free of
      charge:

              

      

       

      
        	
                 
      

              	
                –

              	
                Safety
      gloves

              

      

       

      
        	
                 
      

              	
                –

              	
                Non-prescription
      safety glasses Safety shoes

              

      

       

      
        	
                 
      

              	
                –

              	
                Hearing
      protectors

              

      

       

      or such
other equipment as the Joint Health and Safety Committee deems
necessary.

       

      
        	
                10.01

              	
                The
      Company and the Union mutually agree that they wish to maintain high
      safety and hygiene standards in the
  establishment.

              

      

       

      
        
          	
                  
                    10.02

                  

                	
                  a)

                	
                  
                    The
      Company accepts responsibility for taking adequate and reasonable measures
      for the health and safety of its employees during their working
      hours.

                  

                

        

         

      

      
        	
                 
      

              	
                b)

              	
                The
      Union shall help management succeed with any reasonable accident
      prevention program.

              

      

       

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                c)

              	
                Should
      the Joint Health and Safety Committee not agree with the choice of the
      equipment to be worn, the issue shall be referred to Quebec’s Commission de la Santé et de
      la Sécurité du Travail for a
decision.

              

      

       

      
        	
                10.03

              	
                The
      Company agrees to continue to provide the employees with the safety
      equipment necessary to protect them from hazardous working
      conditions.

              

      

       

      
        	
                10.04

              	
                There
      shall be a Health and Safety Committee made up of representatives for the
      Company and two (2) representatives for the employees, chosen by the
      Union.  The Committee shall meet every two
      months.  The Committee may meet more often if necessary,
      provided the Union and the Company both
agree.

              

      

       

      The
Committee shall be notified as soon as possible of any serious accidents that
occur and of major risks and a member representing each party shall investigate
the nature and cause of accidents.

       

      The
Company shall continue its policy of assisting an injured employee to fill out
his accident notice and apply for benefits from the Commission de la Santé et de la
Sécurité du Travail in accordance with the law.

       

      
        	
                10.05

              	
                Pay
      on the day an employee is injured:

              

      

       

      An
employee who is injured in an industrial accident shall be paid for the time
lost on the day he is injured at his regular daily rate, including any overtime
premium or shift premium that applies.

       

      
        	
                10.06

              	
                The
      Company shall provide transportation and salary for the time spent by the
      employees during regular working hours on the medical treatment required
      as a result of an industrial accident or occupational illness on the day
      of the injury.

              

      

       

      Transportation
means transportation from the plant to the hospital, or from the hospital to the
plant or the employee’s residence if the plant is closed, provided the employee
cannot drive himself.

       

      
        	
                10.07

              	
                If
      an employee is injured while working for the Company and he is off work
      for more than one (1) week due to such accident or illness, every week the
      Company shall advance the employee, at his request, a sum of money
      equivalent to the weekly indemnity the employee should receive from the
      Commission de la Santé
      et de la Sécurité du Travail or disability insurance until he
      receives his first such payment or returns to work, unless the claim is
      disputed or contested by the Employer, and in any event for no more than
      six (6) months.

              

      

       

      It is
understood that the advances by the Company shall at all times be considered a
debt to the Company, which the employee shall repay to the Company, whether or
not he is paid by the Commission de la Santé et de la
Sécurité du Travail or disability insurance, at the latest when he
receives the amounts owed him by the Commission de la Santé et de la
Sécurité du Travail or disability insurance.

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                10.08

              	
                The
      Company shall give every employee hired after the signing of this
      collective agreement a copy of the Act respecting
      Occupational Health and Safety.  Any regulations enacted
      under that statute shall be posted on the bulletin
  board.

              

      

       

      
        	
                10.09

              	
                The
      Company shall inform newly hired employees of the normal risks inherent in
      their work and in the nature of the products manufactured or handled, as
      it understands those risks.  Employees shall not be required to
      work under dangerous or unhealthy conditions in excess of the operational
      risks.

              

      

       

      
        	
                10.10

              	
                All
      new employees or employees transferred to a new classification shall be
      informed of the safest way to complete their
  tasks.

              

      

       

      
        	
                10.11

              	
                The
      Company shall make first-aid equipment available on the Company premises
      during all working hours.

              

      

       

      
        	
                10.12

              	
                One
      employee per shift shall receive, at the Company’s expense, first-aid
      training equivalent to that of the St-John’s Ambulance to be utilized on
      the work premises if need be.

              

      

       

      
        	
                10.13

              	
                All
      medical exams required by the Company shall be done by the physician of
      its choosing during normal working hours, without loss of
      salary.  All expenses incurred due to such exams shall be borne
      by the Company.

              

      

       

      
        	
                10.14

              	
                The
      Company agrees to investigate the source of any dangerous working
      conditions identified by the Safety
Committee.

              

      

       

      
        	
                10.15

              	
                No
      employee shall be required to work alone.  In addition, where
      that practice represents a risk to his health and safety beyond the normal
      operational risks, no employee shall be required to work alone in an
      isolated area.

              

      

       

      
        	
                10.16

              	
                The
      Company shall organize one or more programs and shall put the Safety
      Committee in charge of instituting the program under Sections 10.10, 10.11
      and 10.12.

              

      

       

      ARTICLE 11 – BULLETIN
BOARD

       

      
        	
                11.01

              	
                The
      Company agrees to provide the Union with a bulletin board in the
      establishment for the posting of Union notices and official documents
      approved in advance by the Company.

              

      

       

      ARTICLE 12 – COPIES OF
AGREEMENT POCKETBOOK FORM

       

      
        	
                12.01

              	
                The
      Company and the Union want every employee to be familiar with the
      provisions of this agreement and the rights and duties stemming
      therefrom.  The Company shall have the collective agreement
      printed in pocketbook form and shall distribute it to the employees in the
      bargaining unit.  It shall give a copy to every new employee and
      forty (40) copies to the Union within three (3) months of the signing of
      the collective agreement.  If the Company is unable to meet that
      deadline, photocopies of the collective agreement shall be distributed to
      the employees

              

      

       

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      ARTICLE 13 – UNION
REPRESENTATIVES

       

      
        	
                13.01

              	
                When
      an authorized Union representative who is not a Company employee wishes to
      speak to the local Union representatives in the establishment about a
      grievance or other official Union business, he shall notify the Director
      of Operations or his representative, who shall then call the local Union
      representatives to the office where they may confer in
      private.  Such discussions shall be organized so as not to
      hinder production.

              

      

       

      ARTICLE 14 – GRIEVANCE
COMMITTEE AND STEWARDS

       

      
        	
                14.01

              	
                The
      Union shall notify management in writing of the members of the grievance
      committee and the shop stewards.  There shall be one steward per
      twenty-five (25) employee and at least one (1) steward per
      shift.  For purposes of meetings with the representatives of
      management, the grievance committee shall consist of not more than two (2)
      members appointed by the Union and the international Union
      representative.  The members of the grievance committee shall
      not lose any salary for time spent attending meetings with the
      representatives of management during normal working
  hours.

              

      

       

      
        	
                14.02

              	
                If
      a steward or member of the grievance committee must be absent from his job
      or his department for purposes of his duties, he shall first obtain
      permission from his foreman or departmental supervisor, which permission
      shall not be refused arbitrarily, and he shall not lose any salary for
      time spent on his duties during his regular working
  hours.

              

      

       

      ARTICLE 15 – HANDICAPPED
EMPLOYEES

       

      
        	
                15.01

              	
                Should
      employees be injured on the job or contract an occupational illness during
      their employment and become physically handicapped as a result, the
      Company shall strive, insofar as possible, to provide the handicapped
      employees with a suitable occupation, provided such an occupation is
      available.

              

      

       

      ARTICLE 16 – UNINTERRUPTED
PRODUCTION

       

      
        	
                16.01

              	
                The
      parties hereto agree that during the term of this agreement there shall be
      no lock-out, strike, slowdown or other work interruption or interference
      that could disrupt production.  The Union and the employees of
      the Company agree not to involve the employees of the Company or the
      Company as such in any dispute that could arise between any other employer
      and the employees of such other
employer.

              

      

       

      ARTICLE 17 – WORKING
HOURS

       

      
        	
                17.01

              	
                The
      work week shall be forty (40)
hours.

              

      

       

      
        	
                17.02

              	
                Definition
      of day and work day:

              

      

       

      
        	
                 
      

              	
                a)

              	
                The
      basic work day is eight (8) consecutives hours of work in a period of
      twenty-four (24) hours, interrupted only by the established meal
      break.

              

      

       

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                b)

              	
                The
      first (1st) work shift shall be from 08:00 to 17:00 hours, with a one-hour
      (1-hr) unpaid meal break.

              

      

       

      The
second (2nd) shift shall be from 16:50 to 01:20 hours, with a 1/2- hour unpaid
meal break from 21:00 to 21:30 hours.  (See “Compressed Schedule” in
Schedule G.)

       

      If the
work schedules are changed or a third (3rd) work shift is created, the Union
shall be informed in advance so as to be able to give the employees sufficient
advance notice.

       

      
        	
                17.03

              	
                Definition
      of work week:

              

      

       

      The basic
work week shall consist of five (5) days, from Monday to Friday
inclusively.

       

      
        	
                17.04

              	
                Work
      shifts and schedules:

              

      

       

      When an
employee works on one of his days off, he shall not be required to take another
day off during his regular work week.

       

      
        	
                17.05

              	
                Break:

              

      

       

      Between
the second and third hour of each half work shift, there shall be a ten-minute
(10-min.) break from work.

       

      In
addition, for every three (3) hours or more of planned overtime, the employee
shall be entitled to a ten-minute (10-min.) break towards the end of the second
(2nd) hour.

       

      
        	
                17.06

              	
                The
      employees on the day shift shall be entitled to one (1) hour for their
      meal between noon and 1:00 PM where
possible.

              

      

       

      
        	
                17.07

              	
                Nothing
      In the foregoing sections shall constitute a guarantee of weekly working
      hours.

              

      

       

      ARTICLE 18 – ATTENDANCE
ALLOWANCE

       

      
        	
                18.01

              	
                If
      an employee reports to work at the beginning of his regular shift without
      receiving notice not to come in at least two (2) hours before the
      beginning of his shift, he shall be paid the equivalent of four (4) hours
      of work at the regular rate, but such obligation on the part of the
      Company shall not apply if the work shortage is due to conditions beyond
      the Company’s control, or the employee returns to work before being
      advised of same following an absence of more than three (3) days due to
      illness or accident.

              

      

       

      In the
event of a situation beyond the Company’s control, the Company shall strive to
notify the employees where possible.

       

      
        	
                18.02

              	
                Call-in
      pay:

              

      

       

      Any
employee who is especially called in to work at any time after he has completed
his working hours may finish work when the emergency is over, and he shall
receive a minimum of four (4) hours of pay but never less than four (4) hours of
pay at regular time.

       

       

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

      

       

      ARTICLE 19 – SALARIES AND
CLASSIFICATIONS

       

      
        	
                19.01

              	
                Employees
      governed by this collective agreement shall be paid in accordance
      with:

              

      

       

      
        	
                 
      

              	
                –

              	
                Schedule
      A-1 or

              

      

       

      
        	
                 
      

              	
                –

              	
                Schedule
      A-2 only if they meet the conditions stipulated in the first paragraph of
      Section 19.06.

              

      

       

      
        	
                19.02

              	
                If
      the employer creates a new classification, it shall meet with the Union to
      negotiate the hourly rate, taking into account the hourly rates under this
      agreement.  In the event of a disagreement over the hourly rate,
      the employer shall determine the rate and the Union may contest the new
      rate under the grievance settlement
procedure.

              

      

       

      
        	
                19.03

              	
                When
      a new employee has completed his probationary period, he shall then be
      remunerated in accordance with the provisions of Section 19.05
      (1).  Thereafter, his hourly rate shall be increased in
      accordance with the conditions defined
below.

              

      

       

      
        	
                19.04

              	
                An
      employee who has not yet reached the maximum rate for his classification
      shall receive an increase of $0.42 per hour every four (4) months until
      his hourly rate corresponds to the maximum rate for his
      classification.  However such increase shall be $0.41 instead of
      $0.42 on the anniversary of the employee’s seniority date, so the total
      annual increase shall be equal to
$1.25.

              

      

       

      
        	
                19.05

              	
                An
      employee who obtains a position shall be remunerated as follows and in
      accordance with Schedule A-1 or, if he meets the conditions stipulated in
      the first paragraph of Section 19.06, in accordance with Schedule
      A-2:

              

      

       

      
        	
                 
      

              	
                1.

              	
                An
      employee who has less than two
      years of seniority shall receive the maximum rate for the position,
      less the two following amounts:  $0.84 and $1.25 per year of
      seniority under two years calculated in accordance with the salary
      progression defined in 19.04.  The rate shall always be equal to
      or higher than the minimum rate for the
  position.

              

      

       

      
        	
                 
      

              	
                2.

              	
                An
      employee who has completed at least two years of
      seniority shall receive the maximum rate for the position, less
      $0.84.

              

      

       

      
        	
                 
      

              	
                3.

              	
                An
      employee who has completed at least two years of
      seniority and who has already been
      remunerated at the maximum rate for the position shall then be
      remunerated at the maximum rate for the
  position.

              

      

       

      An
employee who, on May 31, 2005, held a position as a day labourer, insulation
cutter, winder or assembler and who, on May 31, 2005 was already remunerated at
a rate higher than the rate in Schedule A-1 as at June 1, 2005, shall henceforth
be remunerated in accordance with the rate determined for his position in
Schedule A-2 and the provisions of Section 19.05.

       

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

       

       

      If that
employee changes positions, he shall then be remunerated in accordance with the
rate established for his position in Schedule A-1.

       

      ARTICLE 20 – TEMPORARY
TRANSFER

       

      
        	
                20.01

              	
                If
      an employee is required to work in a category other than his
      classification for a full half-day (4 hours) or more, he shall receive the
      rate for the position or his regular rate, whichever is
      higher.

              

      

       

      For
purposes of assessing an employee’s experience, the time spent working in a
position other than his own shall be counted as experience in his own
specialty.

       

      ARTICLE 21 –
OVERTIME

       

      21.01       More
than eight hours of work

       

      The
Company shall pay an employee one-and-a-half (11/2) times his regular hourly
rate for all hours worked beyond eight (8) hours a day for the first four (4)
hours of overtime, that same day, and twice (2X) his regular rate for hours in
excess of four (4) that same day.

       

      
        	
                21.02

              	
                Saturdays
      and Sundays

              

      

       

      The
Company shall pay one-and-a-half (11/2) times the regular hourly rate for the
first ten (10) hours worked on Saturday and double time for hours beyond ten
(10) on Saturday and for work done on Sunday, unless it involves work being done
at the end of the employee’s regular shift.

       

      
        	
                21.03

              	
                All
      overtime work shall be voluntary.  However, it is agreed that
      employees in classifications that are trades or technical jobs recognized
      by the Ministry of Education may be required to work a number of overtime
      hours not exceeding six (6) per normal work week.  However, an
      employee may refuse such overtime on serious and valid
      grounds.  All overtime work beyond such six (6) hours shall be
      done on a voluntary basis.

              

      

       

      21.04       Distribution
of overtime

       

      Normally,
the Company shall give five (5) hours’ advance notice of
overtime.  However, this shall not rule out the possibility of
overtime worked on shorter notice:

       

      1.           When
the need to work overtime is not known in advance.

       

      2.           When
the relevant employee is in agreement with working overtime.

       

      Overtime
opportunities shall be allotted to the employees holding the position for which
overtime is required.  If they are not available, the Company shall
choose, among the most senior employees, those having demonstrated their
qualifications to perform the necessary work in the plant pursuant to Section
8.01.  It is of course understood that overtime shall always be on a
voluntary basis.

       

       

      
        
          
          

        

        
          -17-

          
            

          

        

        
          
          

        

      

       

      Employees
who do not want to be called shall notify the Company in writing on a form
provided for that purpose and they may revoke the notice in writing on a form
provided for that purpose.  The Union shall be given a copy of such
notices.

       

      ARTICLE 22 – SHIFT
PREMIUM

       

      22.01       Afternoon
shift: $0.50

      Night
shift:          $0.60

       

      22.02       Night
shifts

       

      In
general, if there is a second or third shift, the most senior employee shall
have priority to post his name for the shift of his choosing in the event of an
opening.

       

      ARTICLE 23 – STATUTORY
HOLIDAYS

       

      23.01       The
following days shall be paid holidays:

       

      New
Year’s Day

      The day
after New Years Day

      Good
Friday Easter Monday Victoria Day

      St-Jean
Baptiste Day

      Canada
Day Labour Day

      Thanksgiving
Day Christmas Eve Christmas Day Boxing Day

      New
Year’s Eve

      A
floating day may be taken between Christmas and New Year’s Day.

       

      
        	
                23.02

              	
                If
      one of the statutory holidays mentioned above falls on a Saturday, the
      holiday shall be the preceding Friday; if one of the statutory holidays
      falls on a Sunday, the holiday shall be the following
    Monday.

              

      

       

      
        	
                23.03

              	
                For
      each holiday mentioned above, every employee shall receive eight (8) hours
      of pay at his regular rate, including premiums where
      applicable.

              

      

       

      
        	
                23.04

              	
                An
      employee who works on one of the above-mentioned holidays shall receive,
      in addition to his pay for the holiday, double his regular hourly
      rate.

              

      

       

      
        	
                23.05

              	
                To
      be entitled to payment for the above-mentioned holidays, the employee must
      have worked at least eight (8) hours on the day preceding and the day
      following the holiday; an exception shall be made for absence due to
      vacation, death, illness and/or accident not exceeding two (2) weeks, jury
      duty, and authorized leave and/or lay-off not exceeding two (2) weeks
      before the holiday.

              

      

       

      However,
If the Company recalls laid-off employees the day following one of the
above-mentioned holidays, they shall be paid for the holiday preceding their
return so as to receive full salary for their first week of work.

       

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                23.06

              	
                If
      one of the above-mentioned holidays falls during an employee’s vacation,
      he shall be paid for the holiday in addition to his vacation
      pay.

              

      

       

      ARTICLE 24 –
VACATION

       

      
        	
                24.01

              	
                Every
      employee shall be entitled to paid annual vacation commensurate with his
      length of service as stipulated in this collective
    agreement.

              

      

       

      
        	
                24.02

              	
                An
      employee who has not completed ten (10) months of continuous service on
      May 1st each year shall be entitled to paid vacation in accordance with
      the Labour Standards Regulation.

              

      

       

      
        	
                24.03

              	
                An
      employee who, on May 1st each year, has completed ten (10) months of
      service but less than four (4) years shall be entitled to ten (10) days of
      paid vacation.  The vacation pay shall be 4% of the employee’s
      gross salary.

              

      

       

      
        	
                24.04

              	
                An
      employee who, on May 1st each year, has completed four (4) or more years
      of service shall be entitled to fifteen (15) days of paid
      vacation.  The vacation pay shall be 6% of the employee’s gross
      salary.

              

      

       

      
        	
                24.05

              	
                An
      employee who, on May 1st each year, has completed ten (10) or more years
      of service shall be entitled to twenty (20) days of paid
      vacation.  The vacation pay shall be 8% of the employee’s gross
      salary.

              

      

       

      
        	
                24.06

              	
                An
      employee who, on May 1st each year, has completed twenty-one (21) or more
      years of service shall be entitled to twenty-five (25) days of paid
      vacation.  The vacation pay shall be 11% of the employee’s gross
      salary.

              

      

       

      
        	
                24.07

              	
                In
      this Article, gross earnings means the amount of gross earnings, as
      indicated on the previous year’s
statements.

              

      

       

      
        	
                24.08

              	
                The
      Company shall prepare a separate cheque for the employees’ vacation
      pay.

              

      

       

      
        	
                24.09

              	
                a)

              	
                The
      annual vacation period shall be from May 1st to April 30th of each
      year.

              

      

       

      
        	
                 
      

              	
                b)

              	
                The
      employer agrees to close its plant for the last two full weeks of
      July.

              

      

       

      
        	
                 
      

              	
                c)

              	
                All
      employees must take their vacation during a plant closure period, except
      pursuant to an agreement between the employer and an
    employee.

              

      

       

      
        	
                 
      

              	
                d)

              	
                The
      employees whose vacation is longer than the plant closure period shall
      have until April 15th to advise the employer of their vacation
      preferences.

              

      

       

      
        	
                 
      

              	
                e)

              	
                Preference
      for vacation dates shall be granted to the employees based on seniority
      and classification and having regard to operating requirements and
      efficiency.  The employer reserves the right to determine the
      number of employees who may be away at the same
  time.

              

      

       

       

      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                f)

              	
                An
      employee who has completed ten (10) or more years of service on May 1st in
      the year shall be entitled to a third week of vacation immediately prior
      to or following the closure period, having regard to the other provisions
      of Article 24.  The employer shall grant this privilege to ten
      percent (10%) of its total work force at once.  For purposes of
      this section, the total work force includes all the Company’s employees on
      May 1st in a given year, excluding laid-off employees and students hired
      for vacation replacement.

              

      

       

      
        	
                 
      

              	
                g)

              	
                The
      employer shall post the annual vacation list no later than May 15th each
      year.

              

      

       

      
        	
                 
      

              	
                h)

              	
                Vacations
      shall not be cumulative and must be taken in the twelve (12) month period
      following the end of the reference year.  For purposes of
      applying Article 24, the reference year is a period of twelve (12)
      consecutive months from May 1st to April
30th.

              

      

       

      
        	
                 
      

              	
                i)

              	
                If,
      at the end of the twelve (12) months following the end of a reference
      year, the employee is absent due to illness or an accident that occurred
      before his vacation period, the employer may defer the annual vacation to
      the next year at the employee’s request.  If the annual vacation
      is not deferred, the employer shall pay the annual vacation indemnity to
      which the employee is entitled.

              

      

       

      ARTICLE 25 – BEREAVEMENT
LEAVE

       

      
        	
                25.01

              	
                In
      the event of the death of a member of an employee’s immediate family,
      bereavement leave shall be granted to the employee so he can attend the
      funeral.

              

      

       

      
        	
                 
      

              	
                25.02

              	
                a)

              	
                In
      the case of the death of his spouse or one of his children, or his father
      or mother, a maximum of five (5) business days from the death, provided
      one of those days is the day of the
funeral.

              

      

       

      
        	
                 
      

              	
                b)

              	
                In
      the case of the death of the employee’s brother, sister, father-in-law,
      mother-in-law, brother-in-law, sister-in-law or grandchild, a maximum of
      three (3) consecutive business days from the date of
      death.  Such three (3) day period may include the day after the
      funeral.

              

      

       

      
        	
                 
      

              	
                c)

              	
                In
      the case of the death of the grandfather, grandmother, daughter-in-law or
      son-in-law, one (1) day, namely the day of the
  funeral.

              

      

       

      
        	
                 
      

              	
                d)

              	
                If
      there is a cremation, the days may be saved, based on the periods
      mentioned in the foregoing
paragraphs.

              

      

       

      ARTICLE 26 – INSURANCE
PLAN

       

      
        	
                26.01

              	
                The
      group, health and wellness insurance described in Schedule “B” of this
      agreement shall be maintained during the term of this
      agreement.

              

      

       

      
        	
                26.02

              	
                The
      Company agrees to pay 100% of the costs of such
  insurance.

              

      

       

       

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

       

      ARTICLE 27 – INSURANCE AND
TRAVEL EXPENSES

       

      
        	
                27.01

              	
                Normally,
      the Company shall pay for travel time at the applicable rate if an
      employee must travel to do a job requested by the
  Company.

              

      

       

      An
employee who uses his own vehicle to travel outside Granby at the Company’s
request shall be reimbursed for his travel expenses at the rates in force with
the Company.

       

      ARTICLE 28 – TECHNOLOGICAL
CHANGES

       

      
        	
                28.01

              	
                If
      the existing positions are altered due to technological changes, before
      proceeding with such changes and the institution of such operations,
      written notice shall be given to the Union or the parties shall meet to
      negotiate the conditions and rates of salary for the position in question,
      having regard to the rates of salary under this
  agreement.

              

      

       

      The
Company shall provide a plan for reclassification of the employees displaced
from their position due to technological changes.

       

      To the
greatest extent possible and taking due account of the seniority provisions of
this agreement, the Company shall provide new training to each employee
displaced by technology, with a view to a position he wishes to learn and which
he is capable of learning after a reasonable training period.

       

      If, after
such a training period, the employee does not qualify or refuses the new
position, the Company shall assign the employee to another position he is able
to perform.

       

      ARTICLE 29 – TERM OF
AGREEMENT: 5 YEARS

       

      
        	
                29.01

              	
                Letter
      agreements:

              

      

       

      The
parties agree that all of the letter agreements shall form an integral part of
the collective agreement.

       

      
        	
                29.02

              	
                This
      agreement shall come into force on the date of its signing and shall
      expire on May 31, 2010.  The provisions of this agreement
      shall remain in force until the new agreement is
  signed.

              

      

       

       

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

       

       

       

      IN
WITNESS WHEREOF, the parties to hereto have had this agreement signed by their
legally authorized representatives in Granby, Province of Quebec.

       

      On
this 1st day of June 2005

       

       

      
        
          	
                  THE
      STEELWORKERS UNION

                	
                  PIONEER
      TRANSFORMERS LTD.

                
	
                  LOCAL
      9414

                	
                  Granby,
      Quebec

                
	 
      	 
      	 
      	 
      
	/s/
      Daniel
      Mailloux	 
      	 
      	/s/
      James
      A. Wilkins
	
                  Daniel
      Mailloux

                	 
      	 
      	
                  James
      A. Wilkins

                
	 
      	 
      	 
      	 
      
	/s/
      Herman
      Breton	 
      	 
      	/s/
      Alain
      Trépanier
	
                  Herman
      Breton

                	 
      	 
      	
                  Alain
      Trépanier

                
	 
      	 
      	 
      	 
      
	/s/
      Bertrand
      Gévry	 
      	 
      	/s/
      Guy
      Beaudoin
	
                  Bertrand
      Gévry

                	 
      	 
      	
                  Guy
      Beaudoin

                
	 
      	 
      	 
      	 
      
	/s/
      Isabelle
      Proulx	 
      	 
      	 
      
	
                  Isabelle
      Proulx

                	 
      	 
      	 
      

        

       

      
        
          
          

        

        
          -22-

          
            

          

        

        
          
          

        

      

      

       

      Schedule
A-1 – Classifications and Rates of Salary

       

      
        	
                Classification

              	
                Class

              	
                1
      June 2005

              	
                1
      June 2006

              	
                1
      June 2007

              	
                1
      June 2008

              	
                1
      June 2009

              
	 
      	 
      	
                Min.

              	
                Max.

              	
                Min.

              	
                Max.

              	
                Min.

              	
                Max.

              	
                Min.

              	
                Max.

              	
                Min.

              	
                Max.

              
	
                Tester

              	
                2

              	
                17.45

              	
                19.95

              	
                18.07

              	
                20.57

              	
                18.60

              	
                21.10

              	
                19.12

              	
                21.62

              	
                19.65

              	
                22.15

              
	
                Electrical
      mechanic

              	
                2

              	
                17.37

              	
                19.87

              	
                17.99

              	
                20.49

              	
                18.51

              	
                21.01

              	
                19.04

              	
                21.54

              	
                19.59

              	
                22.09

              
	
                Coiler

              	
                3

              	
                17.20

              	
                19.70

              	
                17.71

              	
                20.21

              	
                18.13

              	
                20.63

              	
                18.56

              	
                21.06

              	
                19.00

              	
                21.50

              
	
                Tank
      filler

              	
                3

              	
                16.82

              	
                19.32

              	
                17.37

              	
                19.87

              	
                17.82

              	
                20.32

              	
                18.29

              	
                20.79

              	
                18.76

              	
                21.26

              
	
                Lift
      truck operator

              	
                3

              	
                16.36

              	
                18.86

              	
                16.95

              	
                19.45

              	
                17.44

              	
                19.94

              	
                17.94

              	
                20.44

              	
                18.45

              	
                20.95

              
	
                Stock
      keeper

              	
                4

              	
                16.22

              	
                18.72

              	
                16.70

              	
                19.20

              	
                17.10

              	
                19.60

              	
                17.50

              	
                20.00

              	
                17.91

              	
                20.41

              
	
                Finishing
      Core maker Welder Assembler

              	
                4

              	
                15.96

              	
                18.46

              	
                16.47

              	
                18.97

              	
                16.78

              	
                19.28

              	
                17.31

              	
                19.81

              	
                17.74

              	
                20.24

              
	
                Winder
      Insulation cutter Day labourer

              	
                5

              	
                14.93

              	
                17.43

              	
                15.36

              	
                17.86

              	
                15.72

              	
                18.22

              	
                16.08

              	
                18.58

              	
                16.45

              	
                18.95

              
	
                Minimum
      rate of hire

              	
                6

              	
                14.93

              	
                15.36

              	
                15.72

              	
                16.08

              	
                16.45

              

      

      

       

      Shift
leader premium: $0.50 more than the employee’s hourly rate.

       

       

      
        
          
          

        

        
          -23-

          
            

          

        

        
          
          

        

      

       

       

      Schedule
A-2 – Classifications and Rates of Salary – Employees Concerned by Section
19.06

       

      
        	
                Classification

              	
                Class

              	
                1
      June 2005

              	
                1
      June 2006

              	
                1
      June 2007

              	
                1
      June 2008

              	
                1
      June 2009

              
	 
      	 
      	
                Min.

              	
                Max.

              	
                Min.

              	
                Max.

              	
                Min.

              	
                Max.

              	
                Min.

              	
                Max.

              	
                Min.

              	
                Max.

              
	
                Assembler

              	
                4

              	
                17.00

              	
                19.50

              	
                17.48

              	
                19.98

              	
                17.88

              	
                20.38

              	
                18.29

              	
                20.79

              	
                18.71

              	
                21.21

              
	
                Winder

              	
                5

              	
                16.64

              	
                19.14

              	
                17.12

              	
                19.62

              	
                17.51

              	
                20.01

              	
                17.91

              	
                20.41

              	
                18.32

              	
                20.82

              
	
                Insulation
      cutter

              	
                5

              	
                16.20

              	
                18.70

              	
                16.66

              	
                19.16

              	
                17.05

              	
                19.55

              	
                17.44

              	
                19.94

              	
                17.84

              	
                20.34

              
	
                Day
      labourer

              	
                5

              	
                15.64

              	
                18.14

              	
                16.10

              	
                18.60

              	
                16.47

              	
                18.97

              	
                16.85

              	
                19.35

              	
                17.23

              	
                19.73

              

      

       
 

       

       

       

       

      
        
          
          

        

        
          -24-

          
            

          

        

        
          
          

        

      

       

       

      Schedule
A

       

      (cont’d)

       

       

      Increases
In rates of salary

       

      The
salary increases over the term of the collective agreement shall be as
follows:

       

      
        	
                June
      1, 2005:

              	
                the
      maximum rates in Schedule A of the agreement expiring on May 31, 2005 are
      increased by 2.5% (See # 3 below)

              

      

       

      
        	
                June
      1, 2006:

              	
                the
      maximum rates in Schedules A-1 and A-2 as of June 1, 2005 in this
      agreement are increased by 2.5%

              

      

       

      
        	
                June
      1, 2007:

              	
                the
      maximum rates in Schedules A-1 and A-2 as of June 1, 2006 are increased by
      2%

              

      

       

      
        	
                June
      1, 2008:

              	
                the
      maximum rates in Schedules A-1 and A-2 as of June 1, 2007 are increased by
      2%

              

      

       

      
        	
                June
      1, 2009:

              	
                the
      maximum rates in Schedules A-1 and A-2 as of June 1, 2008 are increased by
      2%

              

      

       

      
        	
                1.

              	
                The
      minimum rate for a position is equal to the maximum rate for that position
      less $2.50 for each year of the agreement.  For example: from
      June 1, 2005 to May 31, 2006, the minimum rate for a coiler is
      $17.20.

              

      

       

      
        	
                2.

              	
                The
      “minimum rate of hire” is equal to the minimum rate for class 5 as at June
      1st in a year.  For example: from June 1, 2005 to May 31, 2006,
      the minimum rate of hire is $14.93.

              

      

       

      
        	
                3.

              	
                A
      new salary structure is established as of June 1, 2005 and the hourly
      rates for the positions of welder, assembler, winder, insulation cutter
      and day labourer are listed in classes 4 and 5 of Schedule
      A-1.

              

      

       

      
        	
                4.

              	
                Section
      19.06 specifies the conditions necessary for receiving the rates of salary
      in Schedule A-2.

              

      

       

      

      
        
          
          

        

        
          -25-

          
            

          

        

        
          
          

        

      

       

      Schedule
B

       

      Group
Insurance Plan

       

      
        	
                Ø  

              	
                Life
      insurance:            $30,000.00

              

      

       

      
        	
                Ø  

              	
                Accidental
      death and
      dismemberment:      $30,000.00

              

      

       

      
        	
                Ø  

              	
                Life
      insurance:

              

      

       

      Spouse:                      $2,000.00

      Children:                    $1,000.00

       

      
        	
                Ø  

              	
                Hospital
      room: semi-private

              

      

       

      
        	
                Ø  

              	
                Ambulance

              

      

       

      
        	
                Ø  

              	
                Prescription
      drugs:

              

      

       

      Deductible:            $25.00
per year for a single employee.

       

      
        	
                 
      

              	
                Deductible:

              	
                $50.00
      per year for an employee with dependants.  The employee shall be
      reimbursed 80% of the cost of all prescription drugs exceeding the
      deductible per year on presentation of appropriate
    receipts.

              

      

       

      A direct
payment card will be supplied to the employees to purchase prescription
drugs.

       

      Medications
must be generic if they are available at the pharmacy.  If there is no
generic medication, the prescribed medication shall be subject to reimbursement
in accordance with the provisions of the insurance policy.

       

      
        	
                Ø  

              	
                Private
      nursing care:  maximum $10,000.00 per 12
  months

              

      

       

      
        	
                Ø  

              	
                Physiotherapy

              

      

       

       

      
        
          
          

        

        
          -26-

          
            

          

        

        
          
          

        

      

       

       

      Schedule
B

       

      (cont’d)

       

       

      Group
Insurance Plan

       

      
        	
                Ø  

              	
                Hospital
      and medical care outside the province: reasonable costs in excess of the
      R.A.M.Q.’s rates

              

      

       

      
        	
                Ø  

              	
                Prostheses
      : up to 80%

              

      

       

      
        	
                Ø  

              	
                Chiropractor
      and podiatrist: $15.00 per visit – maximum 20
  visits

              

      

       

      WEEKLY
BENEFITS

       

      DISABILITY:

       

      The
weekly benefits shall be equal to 66 2/3% of the employee’s weekly salary, up to
the maximum paid by the Canada Employment Insurance Commission and payable on
the first day, in the case of an accident, and from the fourth day in the case
of illness, up to fifteen (15) weeks in any continuous disability
period.

       

      If the
disability lasts longer, the employee must apply to the Canada Employment
Insurance Commission for another period of fifteen (15) weeks.

       

      If, after
those periods, the employee were to be considered totally disabled, being unable
to perform his work for the employer or elsewhere, he shall be eligible for
maximum benefits of $1,200.00/month until 65 years of age.  However,
it is understood that those benefits will be reduced if the employee is eligible
for other benefits from other sources.  In this paragraph, the
“employee’s weekly salary” is the amount obtained by multiplying the employee’s
regular hourly rate by 40.

       

      COMMENT

       

      The
Company intends to register this plan with the Canada Employment Insurance
Commission.  The Union and its members waive all deductions they might
be entitled to due to the registration of this plan as benefits accrued under
the Group Insurance Plan.  This is an overview of the benefits to
which you are entitled.  All rights regarding the benefits of a member
shall be exclusively governed by the universal policy issued by the Insurance
Company.

       

       
 

      
        
          
          

        

        
          -27-

          
            

          

        

        
          
          

        

      

       

      Schedule
C

       

       

      LETTER
AGREEMENT

       

      PRESIDENT

       

      Considering
the Union President’s responsibility, he shall be excluded from the night and
evening shifts.  However, this agreement does not guarantee his job
position.

       

       

       

       

       

       

       

      
        
          
          

        

        
          -28-

          
            

          

        

        
          
          

        

      

       

       

      Schedule
C

       

      (cont’d)

       

       

      LETTER
AGREEMENT

       

      MEDICAL
REPORT

       

       

      Further
to our recent negotiations, we wish to confirm that if a medical report is
prepared following an exam referred to in Section 10.13 of the collective
agreement, the employee in question shall be given a copy of the
report.

       

      In
addition, as is the current practice, the medical report shall be handled with
discretion.

       

       
 

       

      
        
          
          

        

        
          -29-

          
            

          

        

        
          
          

        

      

       

      Schedule
C

       

      (cont’d)

      
 

      LETTER
AGREEMENT

       

      EDUCATION
ASSISTANCE

       

      Further
to our recent negotiations, we wish to confirm our intent to apply the
education-assistance plan currently in force for the executive employees
(salaried employees) to the employees in the bargaining unit.

       

      Under
this policy, when the Company accepts a course or study program for an employee
which is taken while the employee continues to work full-time, it will reimburse
him for half the tuition for such program or course upon registration and the
other half later, provided he successfully completes the course or
program.

       

       
 

      
        
          
          

        

        
          -30-

          
            

          

        

        
          
          

        

      

       

      Schedule
C

       

      (cont’d)

      

       

      LETTER
AGREEMENT

       

      BARGAINING
COMMITTEE

       

      A maximum
of three (3) employees on the bargaining committee shall be paid at their
regularly hourly rate for time spent on negotiations which corresponds to their
regular working hours, provided such employees are chosen from among the
Company’s active work force.

       

      The
Company shall pay until the conciliation process starts for the
negotiations.

       

       

       

       

      
        
          
          

        

        
          -31-

          
            

          

        

        
          
          

        

      

       

       

      Schedule
C

       

      (cont’d)

       

       

      LETTER
AGREEMENT

       

      SUBCONTRACTING

       

      The
Company agrees to keep the Union informed as soon as possible of the tasks
normally performed by the unionized employees which may be
subcontracted.

       

      Except
under exceptional circumstances, proof of which is up to the employer, the
subcontracting of work shall not cause lay-offs or prevent work recalls provided
the equipment and materials are available.

       

       
 

       

       

      
        
          
          

        

        
          -32-

          
            

          

        

        
          
          

        

      

       

      Schedule
D

       

      PENSION
PLAN

       

      For
purposes of the interpretation of this collective agreement, the holder of a
position means a person who obtained the position further to a posting or a
transfer due to a lay-off.

       

      As of
June 1, 1989, the Company instituted a pension plan having the following primary
features:

       

      
        	
                Funding:

              	
                The
      pension plan is 100% funded by the Company.

              
	
                Eligibility:

              	
                Every
      employee joins the pension plan when he begins work as a unionized
      hourly-wage employee at the Granby plant.

              
	
                Past
      Service:

              	
                A
      credit of one (1) year is allocated for each year of
      participation.

              
	
                Pension:

              	
                For
      an employee retiring between June 1, 2005 and May 31, 2007, the monthly
      pension benefit at normal retirement age is $24.00 per year of
      participation.

              
	 
      	
                For
      an employee retiring between June 1, 2007 and May 31, 2008, the monthly
      pension benefit is $25.00 per year of participation.

              
	 
      	
                For
      an employee retiring between June 1, 2008 and May 31, 2009, the monthly
      pension benefit is $26.00 per year of participation.

              
	 
      	
                For
      an employee retiring from and after June 1, 2009, the monthly pension
      benefit is $27.00 per year of participation.

              
	
                Retirement
      Age:

              	
                The
      minimum retirement eligibility age is 65.

              
	
                Early
      Retirement:

              	
                An
      employee who retires at age 63 or older is entitled to an immediate
      pension benefit without any actuarial
reduction.

              

      

      

       

       

      
        
          
          

        

        
          -33-

          
            

          

        

        
          
          

        

      

       

       

      Schedule
D

       

      (cont’d)

       

      Pension
benefit modalities:

       

      If you do not have a spouse
you will receive a simple lifetime pension.  This pension will be paid
to you every month until death.  The monthly benefits will begin as of
your retirement date and will only stop after your death.  Other than
the simple lifetime pension, you may opt for any of the modalities described
below.

       

      If you have a spouse, you may
opt for a joint and survivor pension.  In that case, the pension will
be paid to you every month until death, after which your spouse will receive a
monthly pension corresponding to 60 percent of the one you received until he or
she dies.  The amount of your pension will be lower than for a simple
lifetime pension to offset the greater number of payments that may be made to
your spouse.

       

      Five-year
guaranteed annuity option:

       

      You may
choose another method of pension payments.  If you have a spouse, you
will need their written consent.  If you choose this method, the
amount of the pension you receive will be readjusted based on actuarial
calculations.

       

      The
five-year guaranteed annuity pays an amount until your death and has a minimum
guaranteed period of five years.  If you die before the end of this
period, the monthly payments will go to your spouse or beneficiary until the end
of the guaranteed period.  If you die after the period ends, the
payments will stop.

       

      Only one
of the above options may be chosen and the election must be made before the
employee retires.

       

      The
amount of the pension payable under either of the two (2) options will be the
actuarial equivalent of the regular pension to be paid.  The whole in
accordance with the actuarial methods and assumptions specifically adopted for
this plan by the Company on the advice of an actuary.

       

       

      
        
          
          

        

        
          -34-

          
            

          

        

        
          
          

        

      

       

      Schedule
D

       

      (cont’d)

       

      Retirement
allowance at age sixty (60):

       

      An
employee who retires on the first day of the month coinciding with his sixtieth
(60th) birthday or the next month will receive a retirement allowance payable in
a one-time lump sum of ten thousand dollars ($10,000).

       

      To
benefit from this retirement allowance, an employee must notify the employer in
writing at least three (3) months before his retirement date.

       

      The
retirement allowance will be deposited directly in the employee’s registered
retirement savings plan if the employee authorizes the employer to transfer the
amount tax-free to the employee’s personal retirement account.

       

       

      
        
          
          

        

        
          -35-

          
            

          

        

        
          
          

        

      

       

       

      Schedule
E

       

       

      LETTER
AGREEMENT

       

      STUDENTS

       

      Students
hired temporarily for vacation replacement will not have seniority status as
defined in Section 8.03.

       

      Students
will be remunerated at the minimum rate of hire for the term of their employment
and will not be eligible for any other benefits or direct or indirect
remuneration.

       

      If, for
any reason, a student does not return to his studies, he will be deemed to have
resigned his position and if he then applies for a position and the employer
decides to rehire him, he will accrue seniority in accordance with the
provisions of Section 8.03.

       

       
 

      
        
          
          

        

        
          -36-

          
            

          

        

        
          
          

        

      

       

      Schedule
F

       

       

      LETTER
AGREEMENT

       

      TRAINING

       

      The
parties agree to form a joint training committee for the purpose of promoting
employee training.  Outside consultants will be invited to facilitate
the attainment of this objective.

       

       
 

       

      
        
          
          

        

        
          -37-

          
            

          

        

        
          
          

        

      

       

      Schedule
G

       

       

      LETTER
AGREEMENT

       

      COMPRESSED
SCHEDULE

       

       

      The
working hours for the second shift are defined in Section 17.02.

       

      However,
it is understood and agreed that the compressed work schedule described in this
letter agreement shall remain in force for the term of the collective
agreement.

       

      Furthermore,
and notwithstanding any other provision of this collective agreement, it is
agreed that all hours worked on the second work shift shall be paid at the
regular hourly rate without any overtime premium, unless an employee has already
completed a normal day of work on the day shift.

       

      Finally,
and notwithstanding any other provision of this collective agreement, it is also
agreed that payment for vacations or authorized paid holidays shall be as
follows: the employee shall be paid for the number of regular hours he would
normally have worked on his regular schedule for the holiday(s) or vacation
day(s), provided he meets the requirements of Articles 23 and 24.

       

      From Monday to Thursday
inclusively:

       

      
        	
                Ø  

              	
                Working
      hours:          16:50 to
      01:30

              

      

      
        	
                Ø  

              	
                Unpaid
      meal:               21:00
      to 21:30

              

      

      
        	
                Ø  

              	
                Breaks:                         2

              

      

       

      Friday
only:

       

      
        	
                Ø  

              	
                Working
      hours:          16:50 to
      00:30

              

      

      
        	
                Ø  

              	
                Unpaid
      meal:               21:30
      to 22:00

              

      

      
        	
                Ø  

              	
                Break:                           only
      1 break before supper.

              

      

       

       

       

      -38-

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