Document:

exv10w1

 

Exhibit 10.1

COLLECTIVE AGREEMENT

between

PRUDENTIAL STEEL LTD. and

or their successors and/or their

assigns, hereinafter called the

“Company”, OF THE FIRST PART

and

UNITED STEELWORKERS OF AMERICA

LOCAL 7226

hereinafter called the “Union”,

OF THE SECOND PART

EFFECTIVE:

From January 1, 2004

To December 31, 2006

 

 

T A B L E O F C O N T E N T S

	 	      	 	 	 	 	 
	Article	 	 	 	 	Page	 
	1
	 	Purpose of Agreement	 	 	1	 
	2
	 	Union Recognition	 	 	1	 
	2.04
	 	Contracting out	 	 	1	 
	3
	 	No Discrimination	 	 	2	 
	4
	 	Management	 	 	2	 
	5
	 	Union Security	 	 	3	 
	6
	 	Grievances	 	 	4	 
	7
	 	Arbitration	 	 	5	 
	8
	 	Discharge and Disciplinary Procedure	 	 	6	 
	9
	 	Seniority	 	 	7	 
	9.02
	 	Probationary Period	 	 	8	 
	9.03
	 	Seniority Retention and Accumulation	 	 	8	 
	9.04
	 	Loss of Seniority	 	 	8	 
	9.05
	 	Seniority List	 	 	9	 
	9.06
	 	Transfer to Jobs Outside of Bargaining Unit	 	 	10	 
	9.07
	 	Job Postings	 	 	10	 
	9.09
	 	Recall Procedure	 	 	12	 
	9.10
	 	Temporary Transfer	 	 	12	 
	9.11
	 	Lines of Progression	 	 	13	 
	10
	 	Lay-off	 	 	14	 
	10.01
	 	Lay-off Status Defined	 	 	14	 
	10.02
	 	Lay-off Notice	 	 	14	 
	11
	 	Leave of Absence	 	 	15	 
	11.04
	 	Leave to Attend Union Business	 	 	15	 
	11.05
	 	Leave for Union Employment	 	 	16	 
	11.06
	 	Failure to Return from Leave	 	 	16	 
	12
	 	Safety and Health	 	 	17	 
	13
	 	Handicapped Employees	 	 	18	 
	14
	 	Union Representatives	 	 	18	 
	15
	 	Established Practices	 	 	18	 
	16
	 	Bulletin Boards	 	 	18	 
	17
	 	Committeemen and Stewards	 	 	18	 
	18
	 	Hours of Work	 	 	19	 
	18.01
	 	Definition of Day and Work Day	 	 	19	 
	18.02
	 	Purpose of Defining Work Day and Work Week	 	 	19	 
	18.03
	 	Definition of Work Week	 	 	19	 
	18.04
	 	Shift and Work Schedules	 	 	20	 
	18.05
	 	Definition of Shifts	 	 	20	 
	18.06
	 	Shift Premiums	 	 	20	 

 

 

	 	       	 	 	 	 	 
	Article	 	 	 	 	Page	 
	18.07
	 	Lunch Periods	 	 	21	 
	19
	 	Overtime	 	 	21	 
	19.02
	 	Hours Worked in Excess	 	 	21	 
	19.03
	 	Hours Worked on Saturday	 	 	21	 
	19.04
	 	Hours Worked on Sunday	 	 	21	 
	19.05
	 	Exceptions to Daily Overtime	 	 	22	 
	19.06
	 	Lunch Periods	 	 	22	 
	19.07
	 	Overtime Lunches	 	 	22	 
	19.08
	 	Notice of Overtime	 	 	23	 
	20
	 	Statutory Holidays	 	 	23	 
	20.02
	 	Holiday Pay Allowance	 	 	24	 
	20.03
	 	Pay for Work on Holidays	 	 	24	 
	21
	 	Wages	 	 	25	 
	21.03
	 	Standard Hourly Wage Scale	 	 	26	 
	21.09
	 	Out of Line Differentials	 	 	28	 
	21.17
	 	Temporary Transfer	 	 	29	 
	21.18
	 	Trade or Craft and Assigned Maintenance Convention	 	 	29	 
	21.19
	 	Incentives	 	 	29	 
	21.20
	 	General	 	 	29	 
	21.22
	 	Leave of Absence for Union C.W.S. Committee	 	 	30	 
	21.23
	 	Pay Days	 	 	30	 
	21.24
	 	Reporting Pay	 	 	30	 
	21.25
	 	Call Out Pay	 	 	31	 
	21.26
	 	Pay for Jury Service	 	 	31	 
	21.27
	 	Pay on Day of Injury	 	 	31	 
	21.28
	 	Bereavement Pay	 	 	31	 
	21.29
	 	Elimination of Bargaining Unit Jobs	 	 	32	 
	22
	 	Vacations	 	 	32	 
	22.01
	 	Vacation Year	 	 	32	 
	22.02
	 	Length of Vacation	 	 	33	 
	22.03
	 	Vacation Pay	 	 	33	 
	22.07
	 	Vacation Schedules	 	 	36	 
	22.08
	 	Christmas Shutdown	 	 	37	 
	23
	 	Insurance Benefit Program	 	 	37	 
	23.01
	 	Benefits	 	 	37	 
	23.02
	 	Pension Plan	 	 	37	 
	24
	 	Appendices	 	 	37	 
	25
	 	Copies of Agreement	 	 	38	 
	25.02
	 	Letters of Understanding and Agreement	 	 	38	 
	26
	 	Duration of Agreement	 	 	38	 

 

 

	 	     	 	 	 	 	 
	Appendices	 	 	 	Page	 
	Appendix (A)
	 	Cooperative Wage Study	 	 	40	 
	Appendix
(B) 
	 	Learner Period Classification Analysis	 	 	40	 
	Appendix (C)
	 	Schedule of Classifications	 	 	41	 
	Appendix (D)
	 	Hours of Work Schedule	 	 	44	 
	Appendix (E)
	 	Insurance Benefit Program	 	 	49	 
	Appendix (F)
	 	Tradesmen's Tools	 	 	61	 
	Appendix (G)
	 	Protective Clothing	 	 	61	 
	Appendix (H)
	 	Lockers	 	 	62	 
	Appendix (I)
	 	Pension Plan	 	 	63	 
	Appendix (J)
	 	Lines of Progression	 	 	67	 
	 
	 
	 	Letters of Understanding	 	 	 	 
	 
	 
	 	Initiation Fee	 	 	71	 
	 
	 	Pay for Union Business	 	 	72	 
	 
	 	Education Fund	 	 	73	 
	 
	 	Day Shift for Union President	 	 	74	 
	 
	 	Humanities Fund	 	 	75	 
	 
	 	Steelworkers' Savings Plan	 	 	76	 
	 
	 	Severance Adjustment Allowance	 	 	77	 
	 
	 	Group Leader Positions	 	 	79	 
	 
	 	Crew Movement - Oil Country	 	 	81	 
	 
	 	Safety Equipment Trust Fund	 	 	84	 
	 
	 	Safety Monitoring	 	 	86	 
	 
	 	Apprentice Training Agreement	 	 	87	 
	 
	 	Employee Empowerment	 	 	106	 
	 
	 	Shift Leaders	 	 	109	 
	 
	 	Contracting Out Cleaning of Mill Pits	 	 	110	 
	 
	 	Post Retirement Benefit Fund	 	 	111	 
	 
	 	Premium Threading	 	 	112	 
	 
	 	Overtime after 8 Hours/Pay and 40 Hours/Week	 	 	114	 
	 
	 	Gainsharing	 	 	116	 

 

 

ARTICLE 1 — PURPOSE OF AGREEMENT

	 	1.01	 	Whereas the parties agree that it is mutually beneficial and desirable to arrange and
maintain fair and equitable earnings, labour standards, wage rates and working conditions
to obtain efficient operations, to protect the safety and health of employees and to
provide machinery for the adjustment of disputes which may arise between the parties
hereto. THEREFORE, the Company and the Union agree as follows:

ARTICLE 2 — UNION RECOGNITION

	 	2.01	 	The Company recognizes the Union as a sole and exclusive bargaining agent for: all
employees of the Company at its Calgary operations excepting office, clerical and technical
staff, plant security officers, office janitors, foremen and supervisors with authority to
hire and/or fire.
	 
	 	2.02	 	The terms and conditions set forth in this Agreement shall have full force and effect
for all employees in the Bargaining Unit, as described in Article 2.01.

	 	2.03 (a)	 	Persons whose regular jobs are not in the Bargaining Unit shall not work on any
jobs which are included in the Bargaining Unit except for the purposes of instructions,
experimenting, in emergencies when Bargaining Unit employees are not available.

	 	(b)	 	Emergencies when Bargaining Unit employees are not available, shall
be meant to include manpower shortages due to lateness and unauthorized
absenteeism. The Company will make every effort to place a suitable Bargaining
Unit employee in that position as soon as possible.

          Contracting Out

	 	2.04 (a)	 	Whenever practicable, the Company will not contract out work normally performed by
members of the Bargaining Unit for which qualified employees are available.

	 	(b)	 	In the application of Article 2.04 (a), the Company and the Union recognize
the need to work toward the efficient utilization of Bargaining Unit employees so
as to minimize the requirement to contract out work and as such the following has
been agreed to: A Contracting Out Committee will be established, consisting of up
to three (3) representatives of the Company and three (3) representatives
appointed by the Union. This Committee shall meet on the 2nd Tuesday of January,
April, June and September, or as may be mutually agreed. All information will be
disclosed by the Company to enable

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this Committee to make the necessary recommendations as to which work will be
contracted out and which work will be performed by Bargaining Unit employees.
Any and all information supplied shall be kept in the strictest confidence.
Where agreement cannot be reached by this Committee the Union may file a
grievance of a general nature at Step 3 of the Grievance Procedure.

	 	(c)	 	When the Company feels it is necessary because of equipment,
knowledge, skill or time considerations to have other companies perform such work,
it shall be in accordance with, and subject to, conditions set out in Article 2.04
(a) and (b).

ARTICLE 3 — NO DISCRIMINATION OR HARASSMENT

	 	3.01	 	The Company and the Union recognize that all employees have the right to work in an
environment free from discrimination and harassment. The parties wish to create a
workplace in which employees do not engage in or become subject to discriminatory and
harassing behaviour, as defined by law. Accordingly, the Company has established clear
policies prohibiting discrimination and harassment within the workplace. In the
furtherance of these policies, the Company and the Union agree that there will be no
discrimination against any employee on the basis of any prohibited grounds, as set forth in
the applicable Provincial Human Rights Legislation, or on the basis of Union membership or
Union activity, and that harassment will not be tolerated within the workplace. The
parties agree that they shall not exercise their rights under this Collective Bargaining
Agreement in a discriminatory or harassing manner.

	 	3.02	 	If any employee feels subject to discriminatory and harassing behaviour, they have the right
to bring their complaint to the Local Union Civil Rights Committee. The committee member(s)
will then investigate the complaint. If the complainant can agree to a satisfactory
resolution, the matter will be considered resolved. If the complaint cannot be resolved, the
investigating committee member(s) will bring the matter to the Grievance Committee at stage
three of the grievance procedure. All information gathered by the Civil Rights Committee
investigation will be made available to the Grievance Committee in order to proceed with the
grievance.
If a resolution cannot ultimately be finalized through this procedure, the complainant
has the right to take the case to the Human Rights Commission.

ARTICLE 4 — MANAGEMENT

	 	4.01	 	The Union recognizes that it is the function of Management to manage the affairs

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	 	 	 	of the business, and to direct the working forces of the Company subject to the terms
of this Agreement.

	 	4.02	 	Such Management function shall be:

	 	(a)	 	To determine the products and schedules of production, the locations
of production, and the methods and sequence of manufacturing processes.
	 
	 	(b)	 	To maintain discipline of employees including the right to make
reasonable rules and regulations, provided, however, that any dispute as to the
reasonableness of such rules and regulations or any dispute involving claims of
discrimination against any employee in the application of such rules and
regulations shall be subject to the grievance procedure of this Agreement.
	 
	 	(c)	 	To discharge, suspend or discipline employees for just and reasonable
cause, and also hire, transfer, promote, demote and to assign employees to shifts
with due regard to seniority in Article 9 of this contract.

	 	4.03	 	The Company shall not direct the working forces in a discriminatory manner.

ARTICLE 5 — UNION SECURITY

	 	5.01	 	Effective upon date of hiring, all employees within the Collective Bargaining Unit
covered by the Agreement shall become members and maintain membership in the Union, as a
condition of employment.
	 
	 	5.02	 	The Company shall deduct from the wages of each employee in the Bargaining Unit, union
dues, initiation fees and assessments in the amount certified by the Union to the Company
to be currently in effect according to the Union constitution. The total amount so
deducted with an itemized statement of same, in duplicate, shall be forwarded to the Union
prior to the end of the month in which said deductions are made in the manner provided for
in Section 5.04 hereof.
	 
	 	5.03	 	Union members are to be supplied with union deduction totals for income tax purposes.
The Company agrees to show on employees T4 slips the total union deductions for the
previous taxation year.
	 
	 	5.04	 	Cheques shall be made payable to the United Steelworkers of America. Until further
notice from the Union, all cheques shall be forwarded to the United Steelworkers of America
at the following address:

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INTERNATIONAL TREASURER

UNITED STEELWORKERS OF AMERICA

P.O. BOX 1400, STATION “A”

VANCOUVER, BRITISH COLUMBIA

V6C 2P7

and made payable as aforesaid.

	 	5.05	 	The Company agrees to have all present and future employees covered by this Agreement,
as a condition of continued employment, sign an agreement authorizing the Company to
implement the provisions of this Article, and the Union agrees to indemnify the Company,
and hold it harmless against any claim which may arise in complying with the provisions of
this Article.

ARTICLE 6 — GRIEVANCES

	 	6.01	 	The purpose of this Article is to establish procedures for discussion, processing and
settlement of grievances, as defined in Section 6.02 of this Article.
	 
	 	6.02	 	“Grievance” as used in this Agreement is a complaint or request involving any matter
relating to wages, hours or working conditions, including any question of interpretation or
application of, or compliance with, the provisions of this Agreement, and shall only relate
to or concern any grievance which has arisen or arises subsequent to the date of this
Agreement.
	 
	 	6.03	 	Union Officers, Stewards and Committeemen, with the approval of their immediate
supervisor, shall be permitted to leave their jobs to investigate and adjust grievances and
to attend to their duties under this Agreement.
	 
	 	6.04	 	Any grievance must be presented within ten (10) working days of its occurrence or
otherwise it shall not be considered. In the case of a grievance concerning wages, the ten
(10) working day period shall date from the date on which the employee receives his pay
cheque.
	 
	 	6.05
Step 1	 	The grievance committeeman with or without the aggrieved employee may
present the grievance to the employee’s immediate salaried supervisor. The
supervisor shall make his reply verbally or in writing within two (2) days of receipt of
the grievance.
	 
	 	6.05
Step 2	 	Should the grievance committeeman or the employee be dissatisfied with the
Company disposition of such complaint or request, he may refer such matter on a
written form to management within three (3) further working days. Management shall answer
the grievance in writing within three (3) working days or a time

- 4 -

 

   mutually agreed upon.

	 	6.05
Step 3	 	If no settlement is reached in Step Two (2), the grievance committee and
representatives of management will meet within seven (7) working days to discuss the
complaint. The Union’s representative may be in attendance at this meeting. If the
grievance is not then settled, then at the request of either party to this Agreement the
grievance may be referred to arbitration. If notice of arbitration is not given within a
further twenty (20) calendar days, unless further time is mutually agreed upon, the
grievance will be deemed to have been settled.
	 
	 	6.06	 	The Union and the Company shall have the right to initiate a group grievance or a
grievance of a general nature, at Step Three (3) of the grievance procedure.
	 
	 	6.07	 	If the Union does not advance a grievance from Step One (1) to Step Two (2), or from
Step Two (2) to Step Three (3) with-in the agreed time limit, the grievance shall be
considered withdrawn. Failure of the Company to reply to the grievance at any step shall
automatically advance the grievance to the next step.

ARTICLE 7 — ARBITRATION

	 	7.01	 	Whenever pursuant to the provisions of this Agreement a reference to arbitration is
involved, the Company or the Union shall, within twenty (20) days following receipt of a
decision in step (3) notify the other party, in writing, of intent to arbitrate. This
notice shall:

	 	(a)	 	state the matter at issue and in what respect the agreement has been
violated or misinterpreted by reference to the specific clause or clauses relied
upon. Notwithstanding the above, the board may take into consideration all
matters, clauses and evidence which in its opinion has a bearing on the grievance
or question referred to arbitration, and
	 
	 	(b)	 	state the nature of the relief or remedy sought.

	 	7.02	 	(a) Single Arbitrator

The Company and the Union agree that the following persons constitute the panel
of arbitrators from which will be selected a single arbitrator for each grievance
requiring arbitration under this Agreement:

1. Gerald Hawco

2. Tom Joliffe

3. Allan Beatty

4. Alex Trawick

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	 	(b)	 	Selection of Arbitrator

The method of selecting a single arbitrator shall be by rotation, starting with
the order of the names listed above. If the arbitrator so selected is unable to
act, then the arbitrator next on the list of names shall be selected. Unless
otherwise agreed to, a single arbitrator will be appointed for each grievance or
group grievance. No member of the panel of arbitrators may be removed from the
panel unless it is mutually agreed upon by the Company and the Union. If a
member of the panel is unable to continue to act as an arbitrator, a new member
may be appointed; the appointment is to be mutually agreed upon by the Company
and the Union.

	 	7.03	 	At any stage of the grievance procedure including arbitration the conferring parties
may have the assistance of the employee or employees concerned and any necessary witnesses,
and all reasonable arrangement will be made to permit the conferring parties to have access
to the plant and to view disputed operations.
	 
	 	7.04	 	The arbitrator shall have power to deal with matters involving the interpretation,
application or alleged violation of this Agreement and shall not rule on any other matter
nor shall they have the right to alter, amend, set aside, add to or delete from any one of
the provisions herein contained, nor to render any decision which is inconsistent with the
provisions of this Agreement or the Statutes of Alberta.
	 
	 	7.05	 	All time limits specified in Articles 6 and 7 shall be deemed to be exclusive of
Saturdays, Sundays and Company recognized holidays and may be extended by mutual consent of
the parties or by the Arbitrator.
	 
	 	7.06	 	Each of the parties concerned shall pay its own costs and the fees and expenses of
witnesses called by it and its representatives. The fees and expenses of the Arbitrator,
stenographic assistance and rents shall be shared equally between the parties.
	 
	 	7.07	 	The parties agree to abide by the provisions of Articles 6 and 7 as the only means of
resolving any difference which may arise during the term of this Agreement, and all
employees shall continue to work as usual and the Company shall continue its normal
operating practices.

ARTICLE 8 — DISCHARGE AND DISCIPLINARY PROCEDURE

	 	8.01	 	Management shall not take disciplinary action without first warning the employee,
unless the circumstances justify immediate suspension or discharge. In the event of a
claim that an employee has been discharged or suspended unjustly or

- 6 -

 

	 	unreasonably, the grievance shall be filed at Step Three (3) of the grievance procedure
within five (5) working days.

	 	8.02 (a)	 	Warnings shall be given in writing to the employee and a copy shall be sent by mail
to the Union. The Company and the Union agree that disciplinary penalties shall not be
imposed unreasonably or unjustly. In cases where justified penalties and warnings
(excluding dismissals) have been given to an employee, it is understood and agreed that if
an employee is not given a justified penalty and/or warning within a continuous period of
twelve (12) months, his employment record shall be cleared of any deficiencies, and shall
not be used against the employee thereafter.

	 	(b)	 	An employee who the Company intends to suspend shall be retained at
or returned to active work until any grievance contesting such suspension is
finally resolved through the grievance procedure.

	 	8.03	 	If it is determined or agreed at any steps in the grievance procedure or decided by an
arbitrator that an employee has been disciplined or discharged unjustly, the Management
shall put him back on his job with no loss of seniority, and they shall pay the employee
the amount he would have earned had he been working or by any other arrangement as to
compensation, which is just and equitable in the opinion of the parties or in the opinion
of the arbitrator if the matter is referred to such an arbitrator.
	 
	 	8.04	 	Any employee who is discharged, laid off or leaves of his own accord shall be paid all
wages due him on the pay day when such wages would normally be due and payable, unless
otherwise mutually agreed between the Company and the Union.
	 
	 	8.05	 	No employee shall be subject to any disciplinary action by a foreman or supervisor
without having a Union representative present, where such action is to be part of an
employee’s record.
	 
	 	8.06	 	The Union shall be immediately notified, in writing, as to reasons for the dismissal of
any member of the Bargaining Unit.

ARTICLE 9 — SENIORITY

	 	9.02 (a)	 	The parties recognize that job opportunity and seniority shall increase in
proportion to length of service. It is, therefore, agreed that in all cases of vacancy,
promotion, transfer, lay-off, termination and rehiring after lay-off or termination, senior
employees shall be entitled to preference.

	 	(b)	 	In recognition, however, of the responsibility of Management for the
efficient

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operation of the plant, it is understood and agreed that in all such cases,
Management shall have the right to pass over any employee, if it is able to
establish with the employee and the Union, that he does not have the ability or
the physical fitness to perform the work with due regard to Article 6 of this
Agreement.

	 	9.02	 	PROBATIONARY PERIOD — A new employee shall be on probation for a period of six (6)
calendar months. Upon completion of the probationary period, an employee shall acquire
seniority status, and shall be credited with service from his original hiring date. A
probationary employee laid off for lack of work shall, if rehired within a twelve (12)
month period, be credited with time worked prior to lay-off as a probationary employee.

Article 6 shall not apply to probationary employees, except in cases involving
discrimination.

	 	9.03	 	SENIORITY RETENTION AND ACCUMULATION — Seniority shall be retained and shall
accumulate during:

	 	(a)	 	absence from work due to an injury or sickness covered by the
Workers’ Compensation Act until certified by the Compensation Board as being able
to return to work in the Bargaining Unit, subject to 9.04(f) below;
	 
	 	(b)	 	authorized leave of absence;
	 
	 	(c)	 	lay-off subject to Section 9.04(d);
	 
	 	(d)	 	absence from work due to medically certified illness or injury,
subject to 9.04(f) below;
	 
	 	(e)	 	while serving in the Armed Forces during period of national
emergency;
	 
	 	(f)	 	while serving in the Armed Force reserve for periods of up to one
year.

	 	9.04	 	LOSS OF SENIORITY — An employee shall lose his seniority standing and his name shall be
removed from all seniority lists for any one of the following reasons:

	 	(a)	 	If an employee quits;
	 
	 	(b)	 	If the employee is discharged for proper cause, and is not reinstated
in accordance with the provisions of this Agreement;
	 
	 	(c)	 	If the employee is laid off and fails to notify the Company within
five (5)

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working days of his intention as to whether he intends to return to work or not,
after having been notified to do so by the Company by registered mail to his last
known address, and fails to return to work in ten (10) working days after receipt
of the registered notice, as stated above; copy of such notice to be sent to the
Union. Exceptions to this rule will be extenuating circumstances.

It is the responsibility of laid off employees to keep the Company informed of their
addresses and telephone numbers.

	 	(d)	 	on the date on which the above registered letter has been returned to
the Company from the post office.
	 
	 	(e)	 	If he has been on lay-off because of lack of work for a period equal
to his time of seniority or twenty-four (24) months, whichever is greater;
	 
	 	(f)	 	employees who have ceased to receive Disability Benefits from either
the Workers Compensation Board or the Short or Long Term Disability Benefits,
under this Collective Agreement, and are unable to return to active employment in
the Company for medical reasons, or, who have completed job retraining from the
Worker’s Compensation Board shall not accumulate further seniority from the
date of such discontinuation of benefits. Employees who are not accumulating
seniority under this article shall not be eligible for further benefits under
this Collective Agreement (including pension and insurance benefit program) until
such time as they are medically fit to return to active employment in the Company.

	 	9.05	 	SENIORITY LIST — The Company shall prepare a plant-wide seniority list and present same
to the Union within thirty (30) days of the signing of this Agreement. Said lists shall
commence with the employee with most seniority, carry on downward to the employee with
least seniority, and contain the following information:

	 	(a)	 	employee’s starting date;
	 
	 	(b)	 	employee’s name and clock number.

Additional revised lists will be furnished to the Union as requested from time to time,
and within ten (10) days of said request. The Union agrees not to make such requests
more frequently than once every two (2) months. Seniority lists shall include all
Bargaining Unit employees on the payroll at the time such seniority list is prepared.

The Company shall also prepare a maintenance department seniority list that shall

- 9 -

 

include all tradesmen and apprentices, and the starting date on such seniority list
shall be the date upon which the employee enters the maintenance department.

Employees having the same starting date, on either the plant-wide seniority list or the
maintenance department seniority list shall appear and receive preference in
alphabetical order.

	 	9.06	 	TRANSFER TO JOBS OUTSIDE OF BARGAINING UNIT -
	 
	 	9.06(a) 	 	Employees who are transferred through the Bargaining Unit to any other part of the
Company’s service shall retain and shall accumulate seniority in the bargaining unit to a
maximum of twelve ( 12 ) cumulative months. During these periods of time, that the employee
is transferred outside of the bargaining unit, the Company may elect to return the employee
to his former position in the bargaining unit, or the employee may elect to return to his
former position held in the Bargaining Unit.
	 
	 	9.06(b)	 	 Article 9.06 (a) shall apply provided that:

	 	1.	 	They have completed their probationary period as regular employees in
the Bargaining Unit, and
	 
	 	2.	 	They exercise their seniority rights or signify their intentions to
do so upon the termination of their jobs outside the Bargaining Unit.
	 
	 	3.	 	They pay all dues accrued during the transfer period outside of the
Bargaining Unit.
	 
	 	4.	 	All back dues will be calculated and paid to the Union through
payroll deduction by the Company.

	 	9.07	 	JOB POSTING — When preferential jobs (jobs that are normally a one shift operation), or
jobs above Job Class 4 are available, the following procedures will govern the assignment
of employees to these jobs:

	 	(a)	 	Job vacancy notices will be posted, within five (5) working days, on
the bulletin board for three (3) full working days, but not longer than four (4)
working days. The job requirements and qualifications shall be listed on the job
vacancy notices.

The name of the successful bidder will be posted after three (3) days of removal
of notice from the bulletin board unless this time is extended by mutual
agreement.

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	 	(b)	 	Applications will be made to the Management on a form supplied by the
Company.
	 
	 	(c)	 	Any grievance concerning assignments made under job posting must be
filed within five (5) working days after the assignments are posted.
	 
	 	(d)	 	Probationary employees shall be eligible to bid for posted job
vacancies, but the Company may assign such employees to any vacancies, if the jobs
cannot be filled by the bidding procedures.
	 
	 	(e)	 	A job vacancy need not be posted a second time within thirty (30)
days, if there are enough suitable applicants from the first posting to fill the
vacancy or vacancies.
	 
	 	(f)	 	An employee may apply for a lower paid job in any department, or for
a job at equal pay in a different department after four (4) working months in his
current job.
	 
	 	(g)	 	If an employee has been a successful bidder under the job posting provision,
then he may be ruled ineligible during his next three (3) working months for a job
less than two (2) job classes higher than his classification at the time.
	 
	 	(h)	 	In cases of job vacancies not being posted, information will be
supplied to the Union upon request. Employees who are absent, while the job is
up, can have one of the Union executive committee members sign his name and the
member of the Union executive must place his initials against the name of the
employee. The absent employee must request this for each job bid from one of the
executive committee members.
	 
	 	(i)	 	In the event that an employee selected for the job proves to be
unsuitable for the position, he shall revert to his former position and status in
accordance to seniority.
	 
	 	(j)	 	In the event that a foreman wishes to discuss with an employee his
suitability for a posted job, the employee may be accompanied by a Union committee
member.
	 
	 	(k)	 	The Company shall provide the Union with a list of jobs that each
employee has held, or is deemed to have held, under the job posting provision.
This list shall be updated bi-yearly.
	 
	 	(l)	 	All requests by employees to be taken off a bid job must be in
writing and shall include an explanation for such request. Such requests shall
not be unreasonably denied.

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	 	(m)	 	After five (5) days of holding a job bid, the successful bidder will
receive that rate of pay or his previous rate of pay, whichever is greater.
	 
	 	(n)	 	The successful bidder must be on the job within ten (10) days of
being notified as the successful bidder.
	 
	 	(o)	 	For tradesmen or apprentices bidding on a job posting, other than
Maintenance department job bids which shall be determined by Maintenance
department seniority, their plant seniority shall be the seniority used to
determine their eligibility on any such job vacancy.
	 
	 	(p)	 	Employees requesting a transfer, in the same job classification,
between plants when one plant is on a two shift operation and the other plant is
on a three shift operation, shall be granted such transfer request with due regard
to seniority. An employee shall not make such request more often than once every
three months.

	 	9.08	 	If a temporary shortage of work occurs for a period of five (5) working days or
less, employees affected shall have the option, upon the commencement of their next
regularly scheduled shift, of accepting the lay-off or filling non-bid jobs in the labour
pool, and retaining their rates of pay.

	 	(a)	 	Filling non-bid jobs in the labour pool shall be subject to seniority
regulations in the bumping procedure.

	 	9.09	 	RECALL PROCEDURE — In the case of recall of employees on lay-off status, the following
procedure shall apply:

	 	(a)	 	Senior employees who decline recall to work which they are informed
is temporary, and of limited duration, shall not thereby forfeit their seniority.
They shall not be eligible to displace junior employees during the estimated
period of employment for which they declined recall, and they shall not be
eligible for further temporary recall as above until they notify the Manager,
Human Resources of their subsequent availability for work.
	 
	 	(b)	 	The Union shall be supplied with a list of those employees who the
Company has been unable to contact, or who have refused, for a temporary recall.
The Company and the Union shall coordinate their efforts to contact those
employees.

	 	9.10	 	TEMPORARY TRANSFER

	 	(a)	 	Temporary transfers can be made to jobs under this Collective
Agreement for a maximum of forty-five (45) calendar days to enable the Company to
meet operational requirements, or to hire and/or train employees and pending

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assignments made under job posting providing that temporary transfers will not be
used to deny senior employees the right to fill jobs under the job posting
provision. Senior employees shall be entitled to the right of refusal or
acceptance of such temporary transfers.

	 	(b)	 	Temporary transfers of ten (10) working days or less can be made
without regard to seniority regulations in Article (a) above, but not on a
continuing basis. When there is a known vacancy, of one scheduled week or more,
senior employees will be used whenever possible. If the senior employee is not
used, he shall receive the higher of the two rates of pay.
	 
	 	(c)	 	The Company shall maintain a list of all employees who are on
temporary transfer. Such list shall be made available for review by the Union at
any time.
	 
	 	(d)	 	When an employee is off work due to illness or accident for more than
forty-five (45) days, his job will then be put up for temporary bid. Upon
returning from accident or illness, the individual will retain his job and bump
out the temporary bidder even if the temporary bidder is senior. However, the
temporary bidder shall hold recall rights to the position.

	 	9.11	 	LINES OF PROGRESSION -

	 	(a)	 	The lines of progression shall be set forth in this Agreement,
subject to any subsequent changes agreed upon between the Company and the Union.
Such changes to be in writing and signed by both parties. Any new job established
in the line of progression shall become part of the line of progression.

	 	(b)	 	General Terms

	 	1.	 	Plant seniority will be the seniority considered for
applications for bidding into a line of progression. To move up the line of
progression, an employee must have held the next lowest job listed in that
line of progression for a length of time, as defined in such line of
progression.
	 
	 	2.	 	Employees can bid out of the line of progression at any
time.
	 
	 	3.	 	All present employees who have in the past, bid and
received any job listed in the line of progression, will be given credit and
will be able to bid into the next higher job.

See pages 67 — 70 inclusive.

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ARTICLE 10 — Lay-off

	 	10.01	 	Lay-off STATUS DEFINED — Lay-off status under this Agreement provides an employee with
the right to be recalled to work in accordance with Article 9.

For the purpose of this Agreement, “lay-off” means temporary dispensation with the
services of an employee for a period exceeding five (5) working days in any one (1)
calendar month.

	 	10.02	 	Lay-off Notice

	 	(a)	 	Employees laid off because of lack of work, except for breakdowns or reasons
outside the control of the Company, shall be given five (5) working days of
notice. However, this five (5) day notice of lay-off shall not apply to
probationary employees, nor shall it apply to other employees during the first
five (5) consecutive regular working days of recall to work on a day-to-day basis.
Employees who are given five (5) days of notice of lay-off under this Section,
and who are then placed on a day-to-day employment basis which continues without
lay-off for five (5) consecutive regular working days shall again become entitled
to the five (5) day notice of lay-off, as provided in the first sentence herein.
	 
	 	(b)	 	Employees with one (1) or more years of seniority shall be given ten
(10) working days notice of lay-off.

	 	10.03	 	A senior employee shall have the right to displace a junior employee provided that:

	 	(a)	 	The senior employee has held that job by bid or is considered to have
held the job by bid.
	 
	 	(b)	 	The senior employee may bump only into their most recent job on which
they were the successful bidder, or they may elect to bypass such a job and bump
into the next most recent job that he has held by bid, regardless of the job class
of such a job.
	 
	 	(c)	 	An employee who does not have the seniority to hold a bid job as a
result of lay-off may bump into the labour pool, providing he has the seniority to
do so.
	 
	 	(d)	 	The procedure for recall to bid jobs shall be in reverse order of the
job bumping procedure.
	 
	 	(e)	 	If any employee elects to bypass any job, he shall forfeit his recall
rights to any such job.

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	 	(f)	 	In the event an employee who has bumped into a former position proves
to be unsuitable for the position, he shall revert to his next former position
and/or status.
	 
	 	(g)	 	Maintenance department seniority shall determine who bumps out of
the maintenance department during a reduction in work. The employee’s plant
seniority shall determine his bumping rights to any former positions. (Subject to
Article 3.04 of the Apprenticeship Agreement).

ARTICLE 11 — LEAVE OF ABSENCE

	 	11.01	 	Personal Reasons — An employee will be allowed a thirty (30) day leave of absence
without pay for personal reasons, if:

	 	(a)	 	he requests it from Management in writing;
	 
	 	(b)	 	the leave is for a good reason, and does not interfere with
operations, except in emergency situations when leave shall be granted regardless.
	 
	 	(c)	 	In the event that an employee is accused of an offence which requires
a court appearance, he shall be entitled to a leave of absence without pay to
attend court.
	 
	 	(d)	 	In the event that the employee is incarcerated while awaiting a court
appearance, and is subsequently found not guilty, the employee shall be granted a
retroactive leave of absence for such period of time.

	 	11.02	A leave of absence will be extended for additional thirty (30) day periods if there is
a good reason, and Management and Union mutually agree. The employee must request the
extension in writing before his thirty (30) day leave is up.
	 
	 	11.03 (a)	 	All requests for leave of absence, of five (5) days or less, under this Article
will be reviewed by Company representatives. The Union will be notified of all leaves
granted under this paragraph.

	 	(b)	 	All requests for leave of absence, of over five (5) days, under this
Article will be reviewed by a Company-Union Committee before the request is
authorized or denied. This committee shall be composed of up to three (3) Union
and three (3) Company representatives.

	 	11.04	 	Leave to Attend Union Business — An employee who has been elected or appointed by the
Union to attend Union business shall be granted a leave of absence without pay for this
purpose. The Union will inform the Company of the

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	 	 	 	names of the delegates at least three (3) working days in advance. Alternate delegates
will be selected in the event of sickness or to meet work requirements.

	 	11.05	 	Leave for Union Employment —  The Company shall grant an employee a leave of absence
for one (1) year to work in an official capacity for the local or international Union.
This leave may be extended for one (1) additional year by mutual agreement between the
Company and Union. There shall be a limit of one (1) person on such leave at one (1) time.
The employee must request the leave in writing and the Union must approve it.
	 
	 	11.06	 	Failure to Return from Leave — Any leave of absence will be in writing and no such
leave will affect any employee’s seniority rights when used for the purpose granted
provided he shall return to work at the expiration of such leave. Any employee who fails
to report for work upon expiration of his leave of absence or any extension thereof shall
be deemed to have voluntarily ceased employment with the Company (except by reasons of
force majeure).

	 	11.07 (a)	 	The Company shall compensate employees on the Negotiating Committee at their
standard hourly rate for time spent in negotiation meetings with the Company during regular
day shift hours that they would otherwise have worked.

	 	1.	 	When meeting with Company for 2 hours or more, payment of a full
day’s pay.
	 
	 	2.	 	When meeting as a sub committee, payment of a full day’s pay.
	 
	 	3.	 	When Company requests member not return to work, payment of a full
day’s pay.
	 
	 	(b)	 	During negotiations for a new Collective Agreement, the Company will
place employees, members of the Negotiating Committee, on the day shift when
meeting with Company.
	 
	 	(c)	 	The Union Negotiating Committee shall consist of a maximum of five
(5) members of the Bargaining Unit and such Union International Representatives as
required.

	 	11.08	 	Military Leave to participate in Reserve Force Training or Duty — a maximum of 12
months leave of absence without pay will be granted to employees who are members of the
Reserve Force and are selected for extended, full-time service on peacekeeping or other
missions. Reservists shall give the Company a minimum of 12 weeks advanced notice.

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ARTICLE 12 — SAFETY AND HEALTH

	 	12.01	 	The parties hereto recognize the importance of safety provisions in the plant for the
welfare of the employees and for the protection of the Company’s property. The Company
agrees to improve and promote safe working conditions in the plant. A Safety Committee
shall be composed of up to four (4) Union, one of which shall be the local Union President,
and four (4) Company representatives, one of which shall be the Supervisor, Medical
Services, and it is agreed that the minutes of every meeting shall be made available to
each member of the committee and a copy to the appropriate government agency.
	 
	 	12.02	 	Pay for Safety Committee Meetings held outside regular working hours shall be at
straight time rates.
	 
	 	12.03	 	The Company will maintain a first aid station for the emergency treatment of accidents
during working hours, and a log book of all accidents shall be maintained. Qualified First
Aid personnel shall be available on all shifts.

	 	12.04 (a)	 	Any employee working in the immediate vicinity of a serious or fatal accident may,
at the discretion of the senior supervisor on shift, refrain from working the balance of
the shift, without loss of pay.

	 	(b)	 	The senior shift supervisor, in either of the above situations, shall
notify the Senior Union Representative on shift, of his decision.

	 	12.05	 	Employees who believe that they are being required to work under conditions which are
unsafe or unhealthy beyond the normal hazards inherent in the operation in question shall
have the right to have such conditions investigated immediately. No worker will be
disciplined for exercising his right to refuse unsafe work. The worker will be offered
other work, at his regular job class, until the matter is resolved by the following
process. Upon request by an employee to have his work conditions investigated, his work
station shall be shut down immediately, until such time that the preliminary investigation
is completed. Preliminary investigations may be conducted by the senior salaried supervisor
on shift and any union officer that is on shift, and their decision shall be binding until
a final judgement is passed down by the Safety Committee.
	 
	 	12.06	 	Where an employee is employed under the conditions where he might be injured, and not
be able to secure assistance, the employer shall devise some method of checking on the
well-being of the employee at intervals which are reasonable and practicable under the
circumstances.
	 
	 	12.07	 	The Company will provide paid education leave to the Health and Safety Committee
members.

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	 	12.08	 	The Joint Safety Committee Co-Chairs, or their designates, shall meet quarterly with
the Plant Manager to review reports and recommendations of the Joint Health and Safety
Committee, and discuss other matters pertaining to safety, accident prevention and
industrial hygiene. For special needs related to safety the Union, or the Company, may
request a meeting of the two parties.

ARTICLE 13 — HANDICAPPED EMPLOYEES

	 	13.01	 	In the event of employees sustaining injuries at work, or becoming affected by
occupational diseases during the course of their employment and becoming physically
handicapped, as a result thereof, every effort will be made by the Company to give the
handicapped employee such suitable employment as is available.

ARTICLE 14 — UNION REPRESENTATIVES

	 	14.01	 	If an authorized Representative of the International Union who is not employed by the
Company wishes to speak to Local Union representatives in the plant about a grievance or
other official Union business, he shall make arrangements through the Plant Manager. Such
arrangements shall not interfere with normal plant operations.

ARTICLE 15 — ESTABLISHED PRACTICES

	 	15.01	 	Any rights and privileges enjoyed by the employees prior to the execution of this
Agreement shall be continued and no change shall be put into effect unless mutually agreed
by the Company and the Union.

ARTICLE 16 — BULLETIN BOARDS

	 	16.01	 	The Company agrees to provide the Union with bulletin boards in the plant for the
purpose of posting Union notices and official papers. Notices will be posted only by
officers of the Union and will be in keeping with the spirit and intent of this Agreement.

ARTICLE 17 — COMMITTEEMEN AND STEWARDS

	 	17.01	 	The Union shall notify the Company in writing, within one (1) week of their
appointment or election, of the names of all Union Officers, Committeemen and Stewards.

	 	17.02	 	If a Union Officer or Committeeman is required to leave his job in connection with his
duties under this Agreement, he must obtain permission from his immediate supervisor before
doing so. Such permission will not be unreasonably

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	 	 	 	withheld and he shall not suffer loss of pay while so engaged during his working hours.

	 	17.03	 	Union Officers, Stewards and Committeemen shall not suffer loss of pay for authorized
time spent during working hours in the performance of their duties as recognized under this
Agreement.

Matters to be dealt with under the provisions of this Agreement shall normally be
discussed during working hours.

	 	17.04	 	If a Union Officer or Committeeman is assigned to night shift and his duties require
his presence on day shift, he shall be transferred to the day shift for the length of time
his duties require his presence on the day shift, providing proper notice is given to the
Company.

Alternative employees may be selected by the Union when necessary to meet work
requirements or in case of sickness.

	 	17.05	 	There shall be a grievance committee selected by the Union. This committee will be so
selected that each department will be represented.
	 
	 	17.06	 	The duties of officers and committeemen as referred to in this Agreement shall be
deemed to mean carrying out the responsibilities of the committee or committees they are
assigned to as designated on the lists of officers and committeemen supplied to the Company
by the Union. Only those employees included on such lists to the Company will be
recognized as spokesmen for the Union having duties under this Agreement.

ARTICLE 18 — HOURS OF WORK

	 	18.01	 	Definition of Day and Work Day - A day is a twenty-four (24) hour period beginning
with the start of the employee’s shift. The basic work day is eight (8) consecutive hours
of work in the twenty-four (24) hour period broken only by the established lunch period.
	 
	 	18.02	 	Purpose of Defining Work Day and Work Week — The daily and weekly hours of work
outlined in this Article 18 are stated solely for the purpose of calculating overtime and
shall, in no way, be interpreted as a guarantee of work or pay per day or per week.
	 
	 	18.03	 	Definition of Work Week — The basic work week is made up of five (5) consecutive
working days Monday through Friday.

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	 	18.04	 	Shift and Work Schedules

	 	(a)	 	The daily hours of work shall be outlined in Appendix (D) page 44.
	 
	 	(b)	 	An employee required to change shift shall have eight (8) hours of
rest between shifts. In the event an employee is recalled to work before such
eight (8) hours elapse, he shall be considered as still working on his previous
shift and shall be paid the appropriate rates except on a change from afternoon to
day shift when seven and one-half (7-1/2) hours will prevail).
	 
	 	(c)	 	Shift schedules and hours of work schedules shall be made and posted in the
department no later than Wednesday of the preceding week. Employees required to
change shifts for the convenience of the Company shall not suffer loss of
regular earnings, as a result of such shift changes. The Company will provide
available work or pay for the employee(s) affected by such shift changes to make
up the amount of regular earnings by the end of the following pay period.
Overtime rates as set forth herein shall be paid for work performed on an
employee’s scheduled days off.

	 	18.05	 	Definition of Shifts

	 	(a)	 	A shift starting on or after 6:00 a.m., but before 9:00 a.m. is a day
shift.
	 
	 	(b)	 	A shift starting on or after 2:00 p.m, but before 5:00 p.m.
is an afternoon shift.
	 
	 	(c)	 	A shift starting on or after 10:00 p.m., but before 1:00 a.m. is a
night shift.

	 	18.06	 	Shift Premiums

Effective January 1, 1998, shift premiums shall be:

	 	(a)	 	A shift premium of twenty-five cents ($.25) additional to the
standard hourly rate shall be paid each employee for hours worked on afternoon
shift.
	 
	 	(b)	 	A shift premium of fifty cents ($.50) additional to the standard
hourly rate shall be paid each employee for hours worked on night shift.
	 
	 	(c)	 	The shift premiums outlined in (a) and (b) above shall be paid during
overtime hours at the rates outlined, but shall not be included in the standard
hourly rate for computing overtime pay.

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	 	18.07	 	Lunch Periods

Employees shall be granted a lunch period in each shift as provided in Appendix (D)
pages 44 — 48 inclusive.

ARTICLE 19 — OVERTIME

	 	19.01	 	There shall be no pyramiding of time in the calculation of weekly overtime by
including any hours for which daily overtime has already been paid.

	 	19.02	 	(a) Hours Worked in Excess of Eight (8)

The Company shall pay an employee two (2) times his regular straight time hourly
rate for all hours he is required to work over eight (8) hours a day.

	 	(b)	 	Hours Worked in Excess of Twelve (12)

The Company shall pay an employee three (3) times his regular straight time
hourly rate for all hours he is required to work over twelve (12) hours a day.

	 	19.03	 	Hours Worked on Saturday

The Company shall pay two (2) times the employee’s regular straight time hourly rate
for the first twelve (12) hours of work, and three (3) times his regular straight time
hourly rate thereafter.

	 	19.03	 	( a )

The above article 19.03 is subject to the terms and conditions of the Letter of
Understanding “ Overtime after 8 hours per day and 40 hours per week “ that forms part
of this agreement.

	 	19.04	 	Hours Worked on Sunday

The Company shall pay two (2) times the employee’s regular straight time hourly rate
for the first twelve (12) hours of work, and three (3) times his regular straight time
hourly rate thereafter.

	 	19.04	 	( a )

The above article 19.04 is subject to the terms and conditions of the Letter of
Understanding “ Overtime after 8 hours per day and 40 hours per week” that forms part
of this agreement.

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	 	19.05	 	Exceptions to Daily Overtime

When a employee is permitted by the Company to change from one shift to another at his
own request, and a new shift starts within the same twenty-four (24) hour period as his
preceding shift, overtime resulting from such shift changes will not be paid as
provided in Sections 19.02 and 19.03. The starting time of the new shift will start a
new twenty-four (24) hour period for the purpose of determining overtime, but Sections
19.02 and 19.03 shall not apply when an employee whose request for a shift change
has been granted reverts to his previous shift schedule.

	 	19.06	 	Lunch Periods

Regular lunch periods shall start four (4) hours after the start of the employee’s
shift. Employees shall not be required to work more than five (5) consecutive hours
after the starting of the shift without receiving their normal lunch break. Lunch
periods shall be uninterrupted. Employees required to work without a lunch break after
a maximum of five (5) consecutive hours from the start of their shift shall be given a
twenty (20) minute lunch break and shall be paid one-half (1/2) hour at two (2) times
their regular straight time hourly rate.

	 	19.07	 	(a) Overtime Lunches

Employees required to work overtime shall be given a thirty (30) minute
paid lunch break after having worked six (6) consecutive hours or, in any
case, after having worked ten (10) consecutive hours of actual work, and every
four (4) hours thereafter, provided that in each case it is necessary to resume
overtime work involving a paid lunch break as above, the Company will provide a
lunch if the employee(s) concerned were not notified on the previous work day
about the overtime work.

	 	(b)	 	Weekend Lunch Breaks

All employees working overtime on weekends shall work an eight (8) hour shift,
inclusive of a paid lunch break.

	 	(c)	 	Lateness and Overtime

	 	(1)	 	Late starting up to six (6) minutes shall not be
deductible.
	 
	 	(2)	 	Lateness in excess of six (6) minutes shall be calculated
and deductible to the nearest tenth (10th) of an hour, with a minimum
deduction of two-tenths (2/10) of an hour.

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Approved overtime shall be applied and calculated on the following basis:

	 	(1)	 	Up to and including six (6) minutes shall be disregarded
when no further overtime is worked.
	 
	 	(2)	 	Six (6) minutes and over shall be calculated to the
nearest tenth (10th) of an hour with a minimum of two-tenths (2/10) of an
hour.

	 	 	 	NOTE: This section does not provide for
lateness or overtime on a continuous basis.

	 	19.08	 	Notice of Overtime

The Company will provide at least one (1) hour of notice of overtime before the end
of the shift, except in the case of overtime work resulting from equipment breakdown
or from production requirements beyond the control of the Company which occur within
the hour prior to the normal shift finishing time.

	 	19.09	 	The employee(s) shall have the right to refuse any unscheduled overtime. Notice of
scheduled overtime work required on Monday, Tuesday, Wednesday and Thursday shall be given
by noon of the previous day. All overtime on Friday, Saturday and Sunday shall be
voluntary.

	 	19.10 (a)	 	Overtime will be distributed as evenly as possible among those employees normally
performing the work available. Employees who have refused overtime will be credited as
having worked this overtime for even distribution purposes.

	 	(b)	 	Normally performing the work shall be meant to be the specific mill or work
area affected.
	 
	 	(c)	 	Effective on ratification of this contract, the agreed upon record of
overtime distribution shall commence on January 1st of each calendar year, and
shall not exceed a twelve (12) month period.
	 
	 	(d)	 	Overtime worked outside the employees regular department shall not be
counted against the employee’s entitlement to overtime in their regular
department.

ARTICLE 20 — STATUTORY HOLIDAYS

	 	20.01	 	The following shall be recognized as paid holidays under this Agreement subject to
Section 20.02:

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	 	New Year’s Day
	 	First Monday in August
	 

	 	Family Day
	 	Labour Day
	 

	 	Good Friday
	 	Thanksgiving Day
	 

	 	Victoria Day
	 	Remembrance Day
	 

	 	Canada Day
	 	Christmas Day
	 

	 	Stampede Day
	 	Boxing Day

regardless of the day upon which they are observed or celebrated. If any of the above
holidays fall on Saturday or Sunday, the preceding Friday or the following Monday will
be considered the holiday.

	 	20.02	 	Holiday Pay Allowance

An employee shall receive a holiday pay allowance of eight (8) hours pay for any of the
above-named holidays at his average regular straight time hourly rate for the last
complete pay period prior to the holiday, provided that:

	 	(a)	 	If he is a probationary employee, he has completed thirty (30)
consecutive calendar days of employment prior to the holiday, except that if he
does complete the thirty (30) day period, he shall receive pay for any holidays
which occurred during such period, and
	 
	 	(b)	 	he has worked eight (8) hours in the week preceding the holiday,
unless he is absent because of vacation, death in the immediate family, illness,
jury duty, or within fourteen (14) calendar days prior to the holiday, he
commences a leave of absence or is laid off, but
	 
	 	(c)	 	an employee may not qualify for any further paid holidays under item
(b) above until he returns to work.
	 
	 	(d)	 	Disciplinary action may be taken in instances where employees fail to work
the day before or the day after a plant holiday, except where permission was
previously obtained or the employee had a justifiable reason for being absent.

	 	20.03	 	Pay for Work on Holiday

An employee required to work on a holiday named in Section 20.01 shall be paid two (2)
times his regular straight time hourly rate for all work performed in addition to any
holiday pay allowance under Holiday Pay Allowance.

	 	20.04	 	In the event that one or more of the above-named holidays occurs during the employee’s
vacation, he shall be paid for such holiday(s), and the additional days will be added to
his vacation time.

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	 	20.05	 	The observance of the above holidays may be transferred by mutual agreement to other
days than the date proclaimed or provided above.

ARTICLE 21 — WAGES

	 	21.01	 	(a) The Co-Operative Wage Study (C.W.S.) Manual for job description, classification
and wage administration, dated August 1, 1971 (herein referred to as “the Manual”) is
incorporated into this Agreement as APPENDIX (A) page 40, and its provisions shall apply
as if set forth in full herein.

	 	(b)	 	Job classifications shall be as set forth in APPENDIX (C)
attached hereto, and forming part of this Agreement. See pages 41 — 43 inclusive.

	 	21.02	 	Each employee’s job shall be described and classified, and a rate of pay applied to
such employee in accordance with the provisions of this Agreement.

- 25 -

 

	 	21.03	 	Standard Hourly Wage Scale

	 	(a)	 	The standard hourly wage scale shall be as follows:

	 	 	 	 	 	 	 
	Job Class	 	Jan. 1/ 04	 	Jan 1/05	 	Jan 1/06
	1
	 	22.23	 	22.53	 	22.78
	2
	 	22.54	 	22.87	 	23.14
	3
	 	22.85	 	23.21	 	23.50
	4
	 	23.16	 	23.55	 	23.86
	5
	 	23.47	 	23.89	 	24.22
	6
	 	23.78	 	24.23	 	24.58
	7
	 	24.09	 	24.57	 	24.94
	8
	 	24.40	 	24.91	 	25.30
	9
	 	24.71	 	25.25	 	25.66
	10
	 	25.02	 	25.59	 	26.02
	11
	 	25.33	 	25.93	 	26.38
	12
	 	25.64	 	26.27	 	26.74
	13
	 	25.95	 	26.61	 	27.10
	14
	 	26.26	 	26.95	 	27.46
	15
	 	26.57	 	27.29	 	27.82
	16
	 	26.88	 	27.63	 	28.18
	17
	 	27.19	 	27.97	 	28.54
	18
	 	27.50	 	28.31	 	28.90
	19
	 	27.81	 	28.65	 	29.26
	20
	 	28.12	 	28.99	 	29.62
	21
	 	28.43	 	29.33	 	29.98
	22
	 	28.74	 	29.67	 	30.34
	23
	 	29.05	 	30.01	 	30.70
	24
	 	29.36	 	30.35	 	31.06
	25
	 	29.67	 	30.69	 	31.42
	26
	 	29.98	 	31.03	 	31.78
	27
	 	30.29	 	31.37	 	32.14

	 	(b)	 	All employees with a start date after the signing date of this
Collective Agreement, that start at Job Class 4 or less, shall have a two dollar
($2.00) reduction from their rate of pay during the probationary period. In the
event that probationary employees are promoted to a job that is at a Job Class
higher than Job Class 4, such employees shall be paid the rate for the job they
are doing with no reductions. This article will not apply to tradespersons.

	 	21.04	 	Effective on the dates specified in Section 21.03, all employees shall have their
rates of pay adjusted as follows:

- 26 -

 

	 	(a)	 	If the employee is not receiving an out-of-line differential prior to the
dates specified in Section 21.03, the rate of pay of such employee shall be
adjusted to conform to the standard hourly rate for that employee’s job, as
provided in Section 21.03.
	 
	 	(b)	 	If the employee is receiving an out-of-line differential prior to the
dates specified in Section 21.03, the rate of pay of such employee shall be
increased by the amount by which the rate for Job Class I has been increased, as
provided in Section 21.03 and the following shall govern:

	 	(1)	 	If the employee’s new rate resulting from such increase
is greater than the standard hourly rate for the job as provided in
Section 21.03, the amount by which such employee’s new rate is greater than
the rate provided in Section 21.03 shall become such employee’s new
out-of-line differential (which shall replace the former out-of-line
differential) and shall apply in accordance with the provisions of this
Agreement.
	 
	 	(2)	 	If the employee’s new rate resulting from such increase
is equal to or less than the standard hourly rate for the job, as provided
in Section 21.03, the rate of pay of such employee shall be adjusted to
conform to the standard hourly rate for the job, as provided in Section
21.03, and the former out-of-line differential shall be terminated.

	 	21.05	 	As of the date the Standard Hourly Wage Scale becomes effective, the standard hourly
rate for each job class shall be the standard hourly rate for all jobs classified
within such job class and shall so continue for the duration of the Standard Hourly Wage
Scale and shall be applied to any employee in accordance with the provisions of this
Agreement.

	 	21.06	 	Each standard hourly rate established under Section 21.03 shall be:

	 	(a)	 	The established rate of pay for all hours paid for on a non-incentive
job; and
	 
	 	(b)	 	the established hourly base rate and minimum guaranteed rate of pay
under any incentive applied to the job in accordance with the provisions of this
Article.

	 	21.07	 	Except as otherwise provided by this Agreement, the established rate of pay for each
production or maintenance job, other than a trade or craft or apprentice job, shall apply
to any employee during such time as the employee is required to perform such job.
	 
	 	21.08	 	Except as otherwise provided by this Agreement, the established rate of pay for a
trade or craft or apprentice job shall apply to any employee during the time such employee
is assigned to the respective rate classifications in accordance with the provisions of
this Agreement.

- 27 -

 

	 	21.09	 	Out of Line Differentials

The Company shall furnish to the Union a list agreed to by the Company and the Union of
employees who are to be paid “out-of-line differentials”. Such list shall contain the
following information:

	 	(a)	 	Name of incumbent to whom such “out-of-line differential” is to be
paid.
	 
	 	(b)	 	Job title of job on which out-of-line differential is to be paid.
	 
	 	(c)	 	Job classification of such job.
	 
	 	(d)	 	Standard hourly rate of such jobs.
	 
	 	(e)	 	Amount of out-of-line differential.
	 
	 	(f)	 	Date such out-of-line differential became effective.

	 	21.10	 	Except as such out-of-line differential may be changed by the means hereinafter
provided, any employee included in the list referred to in Section 21.09 shall continue to
be paid such out-of-line differential during such time as the employee continues to occupy
the job for which the differential was established.
	 
	 	21.11	 	If an employee with an out-of-line differential is transferred or assigned to a job
having a higher standard hourly rate, then the differential shall be reduced by the amount
of the increase in the standard hourly rate.
	 
	 	21.12	 	If, as a result of lay-off and the exercise of seniority rights, an employee with an
out-of-line differential is moved to a job having a lower standard hourly rate, then the
out-of-line differential shall be cancelled.
	 
	 	21.13	 	If such employee referred to in Sections 21.11 and 21.12 shall be returned to the job
for which the out-of-line differential was established, the out-of-line differential shall
be reinstated, except as it may have been reduced or eliminated by other means.
	 
	 	21.14	 	When an employee would, in accordance with the terms of this Agreement, be entitled to
receive his regular rate, he shall also receive any out-of-line differential to which he is
entitled.
	 
	 	21.15	 	In addition to the means herein provided, increases in the increment between job
classes shall be used to reduce or eliminate out-of-line differentials.

- 28 -

 

	 	21.16	 	Except for the application of the out-of-line differentials as called for herein, the
terms of this Agreement governing transfers shall apply.
	 
	 	21.17	 	Temporary Transfer — An employee who is temporarily transferred from his regular job
shall be paid the standard hourly rate of the job to which he has been transferred,
provided such rate is not less than that of his regular job. If the rate of the job to
which he is temporarily transferred, but not as a result of a lay-off, is less than the
rate of his regular job, he shall be paid the rate of his regular job during the period of
such temporary transfer.
	 
	 	21.18	 	Trade or Craft and Assigned Maintenance Convention — In addition to the provisions of
the Manual for describing and classifying trade or craft and assigned maintenance jobs the
following shall apply:

	 	(a)	 	The description and Classification shall be carried out in accordance
with the Manual.
	 
	 	(b)	 	The job classification of trade or craft jobs, having been classified
as in Paragraph (a), above, shall be increased by two job classes and the two job
classes shall be incorporated into the total classification of the job.
	 
	 	(c)	 	The job classification of assigned maintenance jobs, having been
classified at job class eleven or higher as in Paragraph (a), above, shall be
incorporated into the total classification of the job.
	 
	 	(d)	 	Where a change in an existing job requires a new description and
classification for a job on which this convention has already been applied, such
job shall be reclassified in the same manner as that followed prior to the
application of this convention and the provisions of Paragraphs (a), (b) and (c),
above, shall apply.

	 	21.19	 	Incentives — Should the Company desire to install incentives to cover any jobs, the
following shall govern:

	 	(a)	 	The standard hourly rates for the respective jobs shall be the base
rates and minimum hourly guaranteed rates for such incentives.
	 
	 	(b)	 	The Company shall first discuss with and explain to the Union the
development of any incentive plan, and reach mutual agreement with the
Union regarding such incentive plan before such incentive plan is installed.

	 	21.20	 	General — Any mathematical or clerical errors made in the preparation,
establishment or application of job descriptions, classifications or standard hourly rates
shall be corrected to conform to the provisions of this Agreement.

- 29 -

 

	 	21.21	 	Except as otherwise provided, no basis shall exist for an employee covered by this
Agreement to allege that a wage rate inequity exists.

	 	21.22	 	Leave of Absence for Union C.W.S. Committee —  The Company agrees to grant leave of
absence from their regular work to three employees who shall be selected by the Union to
act on its C.W.S. Committee. Employees so selected shall:

	 	(a)	 	Accumulate any seniority to which they normally would be entitled;
	 
	 	(b)	 	Receive their regular rate of pay from the Company, as based upon a
normal work week; and
	 
	 	(c)	 	Return to their regular employment when their work on the C.W.S.
Committee is completed.

	 	21.23	 	Pay Days —  Employees shall be paid on Company time every second Friday. Employees on
afternoon shift shall be paid on the preceeding scheduled work day.

Employees will be paid on the day preceding when the regular pay day falls on a
statutory holiday.

The regular pay day shall be extended by twenty-four (24) hours, if in the event of a
mechanical breakdown, the pay cheques are unavailable on the regularly scheduled pay
day.

	 	(a)	 	This article may be amended during the term of this Agreement, if
mutually agreed between the Company and the Union, to allow for a different
regular pay day and/or pay method, such as a direct deposit system.

	 	21.24	 	Reporting Pay

	 	(1)	 	In cases where an employee is not notified of an emergency breakdown
before leaving home, and said employee reports for his regular shift, he will
receive a minimum of four (4) hours straight time pay, and shall be required to
perform any work which may be assigned.
	 
	 	(2)	 	To receive reporting pay as in 21.34 (1), employees must have
reported current addresses and telephone numbers to the Company.
	 
	 	(3)	 	After the shift has started, Section 21.34 (1) shall not apply in cases
where a major breakdown occurs as a result of fire, flood, or frost because of
failure of a utility company to deliver gas or electric power, due to a breakdown
outside of the Company’s premises. Under this circumstance an employee may, at
the discretion of the Company, be dismissed for the day and paid for

- 30 -

 

	 	 	 	the actual time worked or for four (4) hours pay, whichever is the greater, but
the employee must accept assigned work.

	 	21.25	 	Call-out Pay — An employee who has left the premises after completion of his scheduled
shift and who is recalled for work with less than eight (8) hours of notice shall be paid
two (2) times his regular straight-time hourly rate, for all hours worked on such callout
up to the starting time of his scheduled shift but, in any event, for not less than two (2)
hours at double his regular straight-time hourly rate. Notwithstanding the foregoing
however, if any employee receives eight (8) hours of notice in advance of the time that he
is required to report to work, or seven and one-half (7-1/2) hours in the case of a change
from afternoon to dayshift, then the starting time of his new work period will start a new
twenty-four (24) hour period for the purpose of determining overtime.
	 
	 	21.26	 	Pay for Jury Service — The Company shall pay an employee who is required for jury
service or who is subpoenaed as a witness, for each day of service, the difference between
his average straight-time hourly rate for the number of hours he normally works on his
regular shift, and the payment he receives for jury service. The employee will present
proof of service and the amount of pay received.
	 
	 	21.27	 	Pay on Day of Injury — An employee hurt in an industrial accident shall be paid for
the time lost on the day he was injured at his regular daily earnings including any
overtime premium and applicable shift differential, but the employee must return to work
unless directed otherwise by the doctor. The Company will provide necessary
transportation for injured workmen on day of injury. The Company shall not be responsible
for the payment of time or transportation compensated for by the Worker’s Compensation
Board.
	 
	 	21.28	 	Bereavement Pay

	 	(a)	 	In the case of a death in the immediate family of an employee, the
Company shall grant three (3) days leave of absence with pay. “Immediate family”
shall be meant to include mother, father, mother-in-law, father-in-law,
brother, sister, brother-in law, sister-in-law, wife, husband, children,
grandchildren, grandparents and grandparents of spouse. Any such leave of absence
must be arranged with the employee’s foreman, if possible, or another Company
representative.

This provision shall apply if the employee attends the funeral, or is
required to take an active part in the estate arrangements of the deceased.

	 	(b)	 	All requests for extended leaves of absence under this article, or a
grievance under this article will be reviewed by a Company-Union Committee. This

- 31 -

 

	 	 	 	Committee shall be composed of up to three (3) Union and three (3) Company
representatives.
	 
	 	(c)	 	Probationary employees who have not completed thirty (30) consecutive
days of employment prior to their commencement of the bereavement leave shall be
eligible for bereavement pay upon their completion of thirty (30) consecutive days
of employment.

	 	21.29	 	Elimination of Bargaining Unit Jobs

Should the Company declare that it has eliminated any job listed in Appendix (C),
Schedule of Job Classifications, or eliminate any job meant to be included in such
appendix, the Company shall inform the Union which job is to be eliminated and any
employee who is currently in such job classification shall:

	 	1.	 	Revert to his former position and status as defined under Article
10.03.
	 
	 	2.	 	Maintain the rate of pay of the eliminated job classification for a
period of one (1) year, unless the rate of pay of his former position and status
is higher, then no rate retention shall apply.
	 
	 	3.	 	Should an employee successfully bid on another job classification
while on rate retention, then such rate retention shall be cancelled.
	 
	 	4.	 	An employee who is receiving rate retention but who is then bumped
due to lay-off shall lose such rate retention. However, when such employee is
returned to the job classification on which he was receiving rate retention, the
rate retention shall be reinstated.

ARTICLE 22 — VACATIONS

	 	22.01	 	Vacation Year — Each current vacation year will be defined as the period from May 1 of
the previous year to April 30 of the current year for calculation of vacation pay and
length of vacation.

	 	(a)	 	For the purpose of computing vacation, seniority shall mean the total
period of service since the employee’s seniority date, excluding periods of time
during which the employee does not return to work from lay-off, after being
notified to do so as per Article 9.04.
	 
	 	(b)	 	Employees on a Prudential Steel related Workers’ Compensation claim, or
Prudential weekly indemnity, at time of recall above, shall continue to
accumulate vacation seniority until such time as they are declared fit to return
to work.

- 32 -

 

	 	22.02	 	Length of Vacation

	 	(a)	 	Employees who have less than one (1) year of seniority as at May 1
shall be entitled to one (1) day of vacation for each month of seniority, to a
maximum of ten (10) days.
	 
	 	(b)	 	Employees who have one (1) but less than two (2) years of seniority
as at May 1 shall be entitled to two (2) weeks vacation.
	 
	 	(c)	 	Employees who have two (2) years but less than eight (8) years of
seniority as at May 1 shall be entitled to three (3) weeks vacation.
	 
	 	(d)	 	Employees who have eight (8) years but less than twelve (12) years of
seniority as at May 1 shall be entitled to four (4) weeks vacation.
	 
	 	(e)	 	Employees who have twelve (12) years but less than twenty-five (25)
years of seniority as at May 1 shall be entitled to five (5) weeks vacation.
	 
	 	(f)	 	Employees who have twenty-five (25) or more years of seniority as at
May 1 shall be entitled to six (6) weeks vacation.

	 	22.03	 	Vacation Pay

NOTE: W.C.B. weekly indemnity benefits and not pension awards shall be considered in
calculating vacation pay.

	 	(a)	 	Employees with less than one (1) year of seniority as at May 1 shall
be entitled to four percent (4%) of all monies received from the Company, Workers
Compensation Board benefits and the Prudential Steel weekly indemnity benefits
while in the employ of the Company.
	 
	 	(b)	 	Employees who have one (1) year but less than two (2) years of
seniority as at May 1 shall be entitled to vacation pay of:

	 	(1)	 	Employees with 1,900 or more credited hours shall be
entitled to eighty (80) times the employee’s average hourly rate during the
vacation year, or four percent (4%) of gross pay, whichever is greater.

- 33 -

 

OR

	 	(2)	 	Employees with less than 1,900 credited hours shall be
entitled to four percent (4%) of all monies received from the Company,
Workers Compensation Board benefits and the Prudential Steel weekly
indemnity benefits while in the employ of the Company.

	 	(c)	 	Employees who have two (2) but less than eight (8) years of seniority
as at May 1 shall be entitled to vacation pay of:

	 	(1)	 	Employees with 1,900 or more credited hours shall be
entitled to one hundred and twenty (120) times the employee’s average hourly
rate during the vacation year or seven percent (7%) of gross pay, whichever
is greater.

OR

	 	(2)	 	Employees with less than 1,900 credited hours shall be
entitled to seven percent (7%) of all monies received from the Company,
Workers Compensation Board benefits and the Prudential Steel weekly
indemnity benefits while in the employ of the Company.

	 	(d)	 	Employees who have eight (8) years but less than twelve (12) years of
seniority as at May 1 shall be entitled to vacation pay of:

	 	(1)	 	Employees with 1,900 or more credited hours shall be
entitled to one hundred and sixty (160) times the employee’s average hourly
rate during the vacation year, or nine percent (9%) of gross pay, whichever
is greater.

OR

	 	(2)	 	Employees with less than 1,900 credited hours shall be
entitled to nine percent (9%) of all monies received from the Company,
Workers Compensation Board benefits and the Prudential Steel weekly
indemnity benefits while in the employ of the Company.

	 	(e)	 	Employees who have twelve (12) but less than twenty-five (25) years
or more years of seniority as at May 1 shall be entitled to vacation pay of:

	 	(1)	 	Employees with 1,900 or more credited hours shall be
entitled to two hundred (200) times the employee’s average hourly rate
during the vacation year, or eleven percent (11%) of gross pay, whichever is
greater.

- 34 -

 

OR

	 	(2)	 	Employees with less than 1,900 credited hours shall be
entitled to eleven percent (11%) of all monies received from the Company,
Workers Compensation Board benefits and the Prudential Steel weekly
indemnity benefits while in the employ of the Company.

	 	(f)	 	Employees who have twenty-five (25) or more years of seniority as at
May 1 shall be entitled to vacation pay of:

	 	(1)	 	Employees with 1900 or more credited hours shall be
entitled to two hundred and forty(240) times the employee’s average hourly
rate during the vacation year, or thirteen per cent (13%) of gross pay,
whichever is greater.

OR

	 	(2)	 	Employees with less than 1,900 credited hours shall be
entitled to thirteen per cent (13%) of all monies received from the Company.
Workers’ Compensation Board benefits and Prudential Steel weekly indemnity
benefits, while in the employ of the Company.

	 	(g)	 	For the purpose of calculating vacation pay, “credited hours” shall
be meant to include:

	 	(1)	 	Hours for which wages are received from the Company
including vacation hours and statutory holidays.
	 
	 	(2)	 	Hours the employee would normally have received while
receiving weekly indemnity benefits from the Workers’ Compensation Board, or
the Company’s Insurance Welfare Program, while in the employ of the Company.
	 
	 	(3)	 	Hours the employee would normally have received while on
temporary Union business (not Union employment).

	 	22.04	 	Estimated vacation pay will be made two (2) weeks prior to start of a vacation and may
be taken in a minimum of one (1) week periods upon written request from the employee.
Request for the above must be received by the payroll department three (3) weeks prior to
start of a vacation.
	 
	 	22.05	 	As the vacation plan was introduced to provide an opportunity for rest and recreation,
no payment will be made in lieu of vacation, except as provided for at

- 35 -

 

	 	 	 	termination of employment. Vacations cannot be accumulated from one year to another.

	 	22.06	 	Should an employee’s service be terminated at any time for any reason whatsoever, he
will be entitled to payment for vacation due him, as provided in 22.03.

	 	22.07	 	Vacation Schedules

	 	(a)	 	The Company, may at its discretion, institute a system of staggered
vacations in any year, and in such event, the employees will be given sixty (60)
days notice of such decision. If staggered vacations are instituted, all
employees who are entitled to vacations at May 1, will if at all possible, be
given their vacation during the summer months. Preference for vacation shall be
in accordance with seniority.
	 
	 	(b)	 	If the Company decides to close the Plant for three (3) consecutive
weeks during the months of July or August, the Company shall post sixty (60) days
advance notice on the Shop Bulletin Board announcing the date on which the Annual
Vacation close-down will start.

Preference for any work available during this period shall be given, in order of
seniority, to those who normally perform such work, except for work available in
the job classification of Material Handler or Sweeper, which shall be offered to
all employees, based on plant seniority, but that the rate of pay shall be the
rate of pay of the work performed.

	 	(c)	 	Employees eligible for a fourth week of vacation, shall be scheduled
giving senior employees preference.
	 
	 	(d)	 	Employees entitled to more than three (3) weeks vacation may be
scheduled for:

	 	(1)	 	Three (3) weeks during the months of May to October,
inclusive, and the remaining vacation between November 1 and April 30 of the
vacation year; or
	 
	 	(2)	 	Such employees who desire more than three (3) weeks
vacation in one (1) unbroken period must make such request sixty (60) days
prior to commencement of the employee’s vacation. The granting of such
requests will be subject to production requirements and preference shall be
in accordance with seniority.

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	 	22.08	 	Christmas Shutdown

If the Company decides to close the plant for up to five (5) working days, not
including statutory holidays, during the Christmas holiday season, the Company shall
post thirty (30) days notice on the Shop Bulletin Board announcing the dates on which
such shutdown shall be. Preference for any work available during this period shall be
given, in order of seniority, to those who normally perform such work, except for work
available in the job classification of Material Handler or Sweeper, which shall be
offered to all employees, based on plant seniority, but that the rate of pay shall be
the rate of pay of the work performed.

ARTICLE 23 — INSURANCE BENEFIT PROGRAM

	 	23.01	 	Benefits

The Insurance Benefit Program as described in Appendix (E) will continue during the
term of this agreement.

	 	23.02	 	Pension Plan

The present Pension Plan, described in Appendix (i), will be continued during the term
of this Agreement.

ARTICLE 24 — APPENDICES

	 	24.01	 	Attached hereto and forming part of this Agreement are the following appendices:

	 	 	 	 	 
	Appendix (A)

	 	-
	 	Co-operative Wage Study (C.W.S.) Manual for Job Description,
Classification and Wage Administration dated January 1, 1971.
	 
	Appendix (B)

	 	-
	 	Learner Period Classification Analysis.
	 
	Appendix (C)

	 	-
	 	Schedule of Classifications.
	 
	Appendix (D)

	 	-
	 	Hours of Work Schedules.
	 
	Appendix (E)

	 	-
	 	Insurance Benefit Program.
	 
	Appendix (F)

	 	-
	 	Tradesmen’s Tools.

- 37 -

 

	 	 	 	 	 
	Appendix (G)

	 	-
	 	Protective Clothing.
	 
	Appendix (H)

	 	-
	 	Lockers.
	 
	Appendix (i)

	 	-
	 	Pension Plan.
	 
	Appendix (J)

	 	-
	 	Lines of Progression.

ARTICLE 25 — COPIES OF AGREEMENT

	 	25.01	 	Copies of this Agreement are to be made available to all employees in the Bargaining
Unit. Union officers and stewards will distribute copies of the Agreement in their
respective departments. All costs to be shared equally between the Company and the Union.
	 
	 	25.02	 	Letters of Understanding and Agreement

	 	(a)	 	Form part of Collective Agreement:

The Company and the Union agree that any and all Letters of Understanding
and Memorandums of Agreement made between the parties, shall be
considered as part of the Collective Agreement.

	 	(b)	 	Copies to Union:

The Company agrees to supply the Union with signed copies of all Letters
of Agreement, Memorandums of Agreement and Appendices, which form part of
the current Collective Agreement.

	 	(c)	 	Renewal:

All Agreements, Letters of Understanding or Memorandums of Agreement
issued prior to the signing of this Collective Agreement, and not
renewed, shall become null and void after signing of this Collective
Agreement.

ARTICLE 26 — DURATION OF AGREEMENT

	 	26.01	 	This Agreement shall be effective from January 1, 2004 to and including December 31,
2006 and thereafter from year to year, unless written notice of intent to terminate and/or
amend the Agreement at the expiration of the above period is given by either party during
the period beginning on October 1, and ending December 1 in any year after 2005.

- 38 -

 

	 	26.02	 	Within thirty (30) days after receipt of any notice given pursuant to this Article by
either party, the parties to this Agreement shall commence negotiations. During the period
of negotiations, this Agreement shall continue in full force and effect.

IN WITNESS WHEREOF the parties hereto have executed this Agreement the
                                                             day of                                                              , 2004.

	 	 	 
	PRUDENTIAL STEEL LTD.

	 	UNITED STEELWORKERS OF AMERICA
	 
	 	 
	 

	 	 
	R.C. Lee

	 	K. Turcotte
	 
	 	 
	 

	 	 
	R.J. Coller

	 	D.L. Hawkins
	 
	 	 
	 

	 	 
	R. Pollitt

	 	N.A. Braybrook
	 
	 	 
	 

	 	 
	T.D. MacKenzie

	 	L.H. Normand
	 
	 	 
	 

	 	 
	 

	 	F.N. Rambie
	 
	 	 
	 

	 	 
	 

	 	S.L. Johnson

- 39 -

 

APPENDIX (A)

Co-operative Wage Study (C.W.S.) Manual for Job Description, Classification and Wage Administration
dated August 1, 1971.

APPENDIX (B)

LEARNER PERIOD CLASSIFICATION ANALYSIS

Schedule of Apprenticeship Training with

Convention Additive of 2.0

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6 Month Training	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Journey	 
	Periods	 	1st	 	 	2nd	 	 	3rd	 	 	4th	 	 	5th	 	 	6th	 	 	7th	 	 	8th	 	 	Man	 
	TRADE TITLES	 	       APPRENTICE JOB CLASSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Electrician
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	19	 	 	 	21	 
	Heavy Duty Mechanic
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	19	 	 	 	21	 
	Machinist
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	19	 	 	 	20	 
	Millwright
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	19	 	 	 	20	 
	Welder — Maintenance
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	 	 	 	 	 	 	 	 	20	 
	Welder — Fabrication
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	 	 	 	 	 	 	 	 	18	 

- 40 -

 

APPENDIX (C)

SCHEDULE OF JOB CLASSIFICATIONS

	 	 	 
	JOB CLASS	 	JOB TITLE
	1
	 	Sweeper
	4
	 	Material Handler
	5
	 	Drift Operator
	6
	 	Stenciller
	6
	 	Tallyman
	6
	 	Bander Operator
	7
	 	Scale Operator
	7
	 	Fin Grinder
	7
	 	Bundling Station Operator
	7
	 	Truck Driver — Maintenance
	8
	 	Ironworker Operator
	8
	 	Upset Inspector
	8
	 	Punch Press Operator
	8
	 	Spray Painter
	8
	 	Grooving Operator
	8
	 	Auxiliary Saw Operator
	8
	 	End Cropper Operator
	8
	 	Beveller Operator
	8
	 	Drift/Hydro
	8
	 	Hydrostatic Tester Operator
	8
	 	Gantry Operator
	8
	 	Strapping Machine Operator
	8
	 	Swedge/Phosphate Operator
	9
	 	Overhead Crane Operator
	9
	 	Overhead Crane Lift-Truck Operator
	9
	 	Saw Sharpener Operator
	9
	 	Flying Cutoff Operator

- 41 -

 

	 	 	 
	JOB CLASS	 	JOB TITLE
	9
	 	Beveller - O.C.G.
	9
	 	Radial Drill Operator
	9
	 	Bandsaw Operator
	10
	 	Bucking Machine Operator
	10
	 	Thread End Inspector
	10
	 	HSS Gantry Crane Operator (Heede)
	10
	 	Pipe Inspector
	10
	 	Uncoiler Operator
	10
	 	Coiler/Re-Coiler Operator
	11
	 	Yard Machine Operator
	11
	 	Yard Tractor Operator
	11
	 	Crane/Coil Machine Operator
	12
	 	Upsetter Operator
	12
	 	Uncoiler-Looper Operator
	12
	 	Mobile Crane Operator
	12
	 	Threading Machine Operator
	13
	 	Ultrasonic Inspector
	14
	 	Laboratory Operator
	14
	 	Yard Group Leader
	14
	 	Threading Line Group Leader
	14
	 	Thread Machine Operator (PT)
	14
	 	Slitter Operator
	15
	 	Assistant Mill Operator
	15
	 	Inspection & Ultrasonic Group Leader
	16
	 	Lab Group leader - Laboratory
	17
	 	Building Maintenance Man
	18
	 	Changeover Man
	18
	 	Shift Leader Yard
	18
	 	Welder Fabrication
	19
	 	Shift Leader Inspection
	20
	 	Millwright
	20
	 	Machinist
	20
	 	Maintenance Welder

- 42 -

 

	 	 	 
	JOB CLASS	 	JOB TITLE
	20
	 	Shift Leader Premium Thread
	20
	 	Fabrication Group Leader
	20
	 	Shift Leader – Slitter
	21
	 	Heavy Duty Mechanic
	21
	 	Electrician-Wireman
	21
	 	Mill Operator
	22
	 	Machinist Group Leader
	23
	 	Heavy Duty Mechanic Group Leader
	23
	 	Electrical Group Leader
	23
	 	Mill Line Group Leader
	25
	 	Senior Heavy Duty Mechanic Group Leader
	27
	 	Shift Leader Mill Line
	27
	 	Shift Leader Mechanic

- 43 -

 

APPENDIX (D)

HOURS OF WORK SCHEDULE

D1 - One Shift Operation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SCHEDULE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NO.	 	REGULAR TIME	 	 	 	 	 	LUNCH	 	 	 	 	 	REGULAR TIME	 	 	 	 
	1A
	 	6:00 a.m.	 	—	 	10:00 a.m.	 	10:00 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	2:30 p.m.
	1B
	 	6:00 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	2:30 p.m.
	1C
	 	6:00 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	2:30 p.m.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1D
	 	6:30 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	3:00 p.m.
	1E
	 	6:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	3:00 p.m.
	1F
	 	6:30 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	3:00 p.m.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1G
	 	7:00 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	3:30 p.m.
	1H
	 	7:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	3:30 p.m.
	1I
	 	7:00 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	3:30 p.m.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1J
	 	7:30 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	4:00 p.m.
	1K
	 	7:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	4:00 p.m.
	1L
	 	7:30 a.m.	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	4:00 p.m.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1M
	 	8:00 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	4:30 p.m.
	1N
	 	8:00 a.m.	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	4:30 p.m.
	1O
	 	8:00 a.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	1:30 p.m.	 	1:30 p.m.	 	—	 	4:30 p.m.

- 44 -

 

PL (Paid Lunch

D2 - Two Shift Operation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SCHEDULE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NO.	 	REGULAR TIME	 	 	 	 	 	LUNCH	 	 	 	 	 	REGULAR TIME	 	 	 	 	 	 
	2A
	 	6:00 a.m.	 	—	 	10:00 a.m.	 	10:00 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	2:30 p.m.	 	 
	 
	 	2:30 p.m.	 	—	 	6:30 p.m.	 	6:30 p.m.	 	—	 	6:50 p.m.	 	6:50 p.m.	 	—	 	10:30 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2B
	 	6:00 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	2:30 p.m.	 	 
	 
	 	2:30 p.m.	 	—	 	7:00 p.m.	 	7:00 p.m.	 	—	 	7:20 p.m.	 	7:20 p.m.	 	—	 	10:30 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2C
	 	6:00 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	2:30 p.m.	 	 
	 
	 	2:30 p.m.	 	—	 	7:30 p.m.	 	7:30 p.m.	 	—	 	7:50 p.m.	 	7:50 p.m.	 	—	 	10:30 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2D
	 	6:30 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	3:00 p.m.	 	 
	 
	 	3:00 p.m.	 	—	 	7:00 p.m.	 	7:00 p.m.	 	—	 	7:20 p.m.	 	7:20 p.m.	 	—	 	11:00 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2E
	 	6:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	3:00 p.m.	 	 
	 
	 	3:00 p.m.	 	—	 	7:30 p.m.	 	7:30 p.m.	 	—	 	7:50 p.m.	 	7:50 p.m.	 	—	 	11:00 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2F
	 	6:30 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	3:00 p.m.	 	 
	 
	 	3:00 p.m.	 	—	 	8:00 p.m.	 	8:00 p.m.	 	—	 	8:20 p.m.	 	8:20 p.m.	 	—	 	11:00 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2G
	 	7:00 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	3:30 p.m.	 	 
	 
	 	3:30 p.m.	 	—	 	7:30 p.m.	 	7:30 p.m.	 	—	 	7:50 p.m.	 	7:50 p.m.	 	—	 	11:30 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2H
	 	7:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m	 	—	 	12:00 noon	 	12:00 noon	 	—	 	3:30 p.m.	 	 
	 
	 	3:30 p.m.	 	—	 	8:00 p.m.	 	8:00 p.m.	 	—	 	8:20 p.m.	 	8:20 p.m.	 	—	 	11:30 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2I
	 	7:00 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	3:30 p.m.	 	 
	 
	 	3:30 p.m.	 	—	 	8:30 p.m.	 	8:30 p.m.	 	—	 	8:50 p.m.	 	8:50 p.m.	 	—	 	11:30 p.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2J
	 	7:30 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	4:00 p.m.	 	 
	 
	 	4:00 p.m.	 	—	 	8:00 p.m.	 	8:00 p.m.	 	—	 	8:20 p.m.	 	8:20 p.m.	 	—	 	MIDNIGHT	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2K
	 	7:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	4:00 p.m.	 	 
	 
	 	4:00 p.m.	 	—	 	8:30 p.m.	 	8:30 p.m.	 	—	 	8:50 p.m.	 	8:50 p.m.	 	—	 	MIDNIGHT	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2L
	 	7:30 a.m.	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	4:00 p.m.	 	 
	 
	 	4:00 p.m.	 	—	 	9:00 p.m.	 	9:00 p.m.	 	—	 	9:20 p.m.	 	9:20 p.m.	 	—	 	MIDNIGHT	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2M
	 	8:00 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	4:30 p.m.	 	 
	 
	 	4:30 p.m.	 	—	 	8:30 p.m.	 	8:30 p.m.	 	—	 	8:50 p.m.	 	8:50 p.m.	 	—	 	0:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2N
	 	8:00 a.m.	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	4:30 p.m.	 	 
	 
	 	4:30 p.m.	 	—	 	9:00 p.m.	 	9:00 p.m.	 	—	 	9:20 p.m.	 	9:20 p.m.	 	—	 	9:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2O
	 	8:00 a.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	1:30 p.m.	 	1:30 p.m.	 	—	 	4:30 p.m.	 	 
	 
	 	4:30 p.m.	 	—	 	9:30 p.m.	 	9:30 p.m.	 	—	 	9:50 p.m.	 	9:50 p.m.	 	—	 	0:30 a.m.	 	PL

- 45 -

 

PL (Paid Lunch

D3 - Two Shift Operation with a Partial Crew on Night Shift

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SCHEDULE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NO.	 	REGULAR TIME	 	 	 	 	 	LUNCH	 	 	 	 	 	REGULAR TIME	 	 	 	 	 	 
	3A
	 	6:00 a.m.	 	—	 	10:00 a.m.	 	10:00 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	2:30 p.m.	 	 
	 
	 	2:30 p.m.	 	—	 	6:30 p.m.	 	6:30 p.m.	 	—	 	6:50 p.m.	 	6:50 p.m.	 	—	 	10:30 p.m.	 	PL
	 
	 	10:30 p.m.	 	—	 	2:30 a.m.	 	2:30 a.m.	 	—	 	2:50 a.m.	 	2:50 a.m.	 	—	 	6:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3B
	 	6:00 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	2:30 p.m.	 	 
	 
	 	2:30 p.m.	 	—	 	7:00 p.m.	 	7:00 p.m.	 	—	 	7:20 p.m.	 	7:20 p.m.	 	—	 	10:30 p.m.	 	PL
	 
	 	10:30 p.m.	 	—	 	3:00 a.m.	 	3:00 a.m.	 	—	 	3:20 a.m.	 	3:20 a.m.	 	—	 	6:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3C
	 	6:00 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	2:30 p.m.	 	 
	 
	 	2:30 p.m.	 	—	 	7:30 p.m.	 	7:30 p.m.	 	—	 	7:50 p.m.	 	7:50 p.m.	 	—	 	10:30 p.m.	 	PL
	 
	 	10:30 p.m.	 	—	 	3:30 a.m.	 	3:30 a.m.	 	—	 	3:50 a.m.	 	3:50 a.m.	 	—	 	6:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3D
	 	6:30 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	3:00 p.m.	 	 
	 
	 	3:00 p.m.	 	—	 	7:00 p.m.	 	7:00 p.m.	 	—	 	7:20 p.m.	 	7:20 p.m.	 	—	 	11:00 p.m.	 	PL
	 
	 	11:00 p.m.	 	—	 	3:00 a.m.	 	3:00 a.m.	 	—	 	3:20 a.m.	 	3:20 a.m.	 	—	 	7:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3E
	 	6:30 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	3:00 p.m.	 	 
	 
	 	3:00 p.m.	 	—	 	7:30 p.m.	 	7:30 p.m.	 	—	 	7:50 p.m.	 	7:50 p.m.	 	—	 	11:00 p.m.	 	PL
	 
	 	11:00 p.m.	 	—	 	3:30 a.m.	 	3:30 a.m.	 	—	 	3:50 a.m.	 	3:50 a.m.	 	—	 	7:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3F
	 	6:30 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	3:00 p.m.	 	 
	 
	 	3:00 p.m.	 	—	 	8:00 p.m.	 	8:00 p.m.	 	—	 	8:20 p.m.	 	8:20 p.m.	 	—	 	11:00 p.m.	 	PL
	 
	 	11:00 p.m.	 	—	 	4:00 a.m.	 	4:00 a.m.	 	—	 	4:20 a.m.	 	4:20 a.m.	 	—	 	7:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3G
	 	7:00 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	3:30 p.m.	 	 
	 
	 	3:30 p.m.	 	—	 	7:30 p.m.	 	7:30 p.m.	 	—	 	7:50 p.m.	 	7:50 p.m.	 	—	 	11:30 p.m.	 	PL
	 
	 	11:30 p.m.	 	—	 	3:30 a.m.	 	3:30 a.m.	 	—	 	3:50 a.m.	 	3:50 a.m.	 	—	 	7:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3H
	 	7:00 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	3:30 p.m.	 	 
	 
	 	3:30 p.m.	 	—	 	8:00 p.m.	 	8:00 p.m.	 	—	 	8:20 p.m.	 	8:20 p.m.	 	—	 	11:30 p.m.	 	PL
	 
	 	11:30 p.m.	 	—	 	4:00 a.m.	 	4:00 a.m.	 	—	 	4:20 a.m.	 	4:20 a.m.	 	—	 	7:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3I
	 	7:00 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	3:30 p.m.	 	 
	 
	 	3:30 p.m.	 	—	 	8:30 p.m.	 	8:30 p.m.	 	—	 	8:50 p.m.	 	8:50 p.m.	 	—	 	11:30 p.m.	 	PL
	 
	 	11:30 p.m.	 	—	 	4:30 a.m.	 	4:30 a.m.	 	—	 	4:50 p.m.	 	4:50 a.m.	 	—	 	7:30 a.m.	 	PL

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PL (Paid Lunch

D3 - Two Shift Operation with a Partial Crew on Night Shift

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SCHEDULE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NO.	 	REGULAR TIME	 	 	 	 	 	LUNCH	 	 	 	 	 	REGULAR TIME	 	 	 	 	 	 
	3J
	 	7:30 a.m.	 	—	 	11:30 a.m.	 	11:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	4:00 p.m.	 	 
	 
	 	4:00 p.m.	 	—	 	8:00 p.m.	 	8:00 p.m.	 	—	 	8:20 p.m.	 	8:20 p.m.	 	—	 	MIDNIGHT	 	PL
	 
	 	MIDNIGHT	 	—	 	4:00 a.m.	 	4:00 a.m.	 	—	 	4:20 a.m.	 	4:20 a.m.	 	—	 	8:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3K
	 	7:30 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	4:00 p.m.	 	 
	 
	 	4:00 p.m.	 	—	 	8:30 p.m.	 	8:30 p.m.	 	—	 	8:50 p.m.	 	8:50 p.m.	 	—	 	MIDNIGHT	 	PL
	 
	 	MIDNIGHT	 	—	 	4:30 a.m.	 	4:30 a.m.	 	—	 	4:50 a.m.	 	4:50 a.m.	 	—	 	8:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3L
	 	7:30 a.m.	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	4:00 p.m.	 	 
	 
	 	4:00 p.m.	 	—	 	9:00 p.m.	 	9:00 p.m.	 	—	 	9:20 p.m.	 	9:20 p.m.	 	—	 	MIDNIGHT	 	PL
	 
	 	MIDNIGHT	 	—	 	5:00 a.m.	 	5:00 a.m.	 	—	 	5:20 a.m.	 	5:20 a.m.	 	—	 	8:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3M
	 	8:00 a.m.	 	—	 	12:00 noon	 	12:00 noon	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	4:30 p.m.	 	 
	 
	 	4:30 p.m.	 	—	 	8:30 p.m.	 	8:30 p.m.	 	—	 	8:50 p.m.	 	8:50 p.m.	 	—	 	0:30 a.m.	 	PL
	 
	 	0:30 a.m.	 	—	 	4:30 a.m.	 	4:30 a.m.	 	—	 	4:50 a.m.	 	4:50 a.m.	 	—	 	8:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3N
	 	8:00 a.m.	 	—	 	12:30 p.m.	 	12:30 p.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	4:30 p.m.	 	 
	 
	 	4:30 p.m.	 	—	 	9:00 p.m.	 	9:00 p.m.	 	—	 	9:20 p.m.	 	9:20 p.m.	 	—	 	0:30 a.m.	 	PL
	 
	 	0:30 a.m.	 	—	 	5:00 a.m.	 	5:00 a.m.	 	—	 	5:20 a.m.	 	5:20 a.m.	 	—	 	8:30 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3O
	 	8:00 a.m.	 	—	 	1:00 p.m.	 	1:00 p.m.	 	—	 	1:30 p.m.	 	1:30 p.m.	 	—	 	4:30 p.m.	 	 
	 
	 	4:30 p.m.	 	—	 	9:30 p.m.	 	9:30 p.m.	 	—	 	9:50 p.m.	 	9:50 p.m.	 	—	 	0:30 a.m.	 	PL
	 
	 	0:30 a.m.	 	—	 	5:30 a.m.	 	5:30 a.m.	 	—	 	5:50 a.m.	 	5:50 a.m.	 	—	 	8:30 a.m.	 	PL

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PL (Paid Lunch

D4 - Three Shift Operation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SCHEDULE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NO.	 	REGULAR TIME	 	 	 	 	 	LUNCH	 	 	 	 	 	REGULAR TIME	 	 	 	 	 	 
	4A
	 	6:00 a.m.	 	—	 	10:00 a.m.	 	10:00 a.m.	 	—	 	10:20 a.m.	 	10:20 a.m.	 	—	 	200 p.m.	 	PL
	 
	 	2:00 p.m.	 	—	 	6:00 p.m.	 	6:00 p.m.	 	—	 	6:20 p.m.	 	6:20 p.m.	 	—	 	10:00 p.m.	 	PL
	 
	 	10:00 p.m.	 	—	 	2:00 a.m.	 	2:00 a.m.	 	—	 	2:20 a.m.	 	2:20 a.m.	 	—	 	6:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4B
	 	6:00 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	10:50 a.m.	 	10:50 a.m.	 	—	 	200 p.m.	 	PL
	 
	 	2:00 p.m.	 	—	 	6:30 p.m.	 	6:30 p.m.	 	—	 	6:50 p.m.	 	6:50 p.m.	 	—	 	10:00 p.m.	 	PL
	 
	 	10:00 p.m.	 	—	 	2:30 a.m.	 	2:30 a.m.	 	—	 	2:50 a.m.	 	2:50 a.m.	 	—	 	6:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4C
	 	6:00 a.m.	 	—	 	11:00 a.m.	 	11:00 a.m.	 	—	 	11:20 a.m.	 	11:20 a.m.	 	—	 	200 p.m.	 	PL
	 
	 	2:00 p.m.	 	—	 	7:00 p.m.	 	7:00 p.m.	 	—	 	7:20 p.m.	 	7:20 p.m.	 	—	 	10:00 p.m.	 	PL
	 
	 	10:00 p.m.	 	—	 	3:00 a.m.	 	3:00 a.m.	 	—	 	3:20 a.m.	 	3:20 a.m.	 	—	 	6:00 a.m.	 	PL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4D
	 	6:30 a.m.	 	—	 	10:30 a.m.	 	10:30 a.m.	 	—	 	10:50 a.m.	 	10:50 a.m.	 	—	 	2:30 p.m.	 	PL
	 
	 	2:30 p.m.	 	—	 	6:30 p.m.	 	6:30 p.m.	 	—	 	6:50 p.m.	 	6:50 p.m.	 	—	 	10:30 p.m.	 	PL
	 
	 	10:30 p.m.	 	—	 	2:30 a.m.	 	2:30 a.m.	 	—	 	2:50 a.m.	 	2:50 a.m.	 	—	 	6:30 a.m.	 	PL

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APPENDIX (E)

INSURANCE BENEFIT PROGRAM

Eligibility

Coverage of all benefits, with the exception of, weekly indemnity and restorative dental coverage,
will commence the first of the month following the date of employment. Weekly Indemnity and
restorative dental coverage will commence after your probationary period which is 90 calendar days.

For employees who are recalled, after lay-off, all benefits shall commence on the first day of the
month following return to work.

All benefits under this program shall cease on the date of termination for an employee who is
terminated for cause (subject to the grievance procedure). The exception to this shall be benefits
which have been pre-approved and are ongoing.

Dependents

Dependents are defined as:

	–	 	A person to whom the employee is legally married, or who
has lived with the employee, as their domestic partner,
for a minimum of 12 months and who has been publicly
represented as the employee’s spouse throughout the
period. If the employee removes the coverage for their
current spouse on the plan, a future spouse may be added
effective:

	 	•	 	The date of marriage
	 
	 	•	 	12 consecutive months after the removal of the previous spouse from the plan, provide
that the employee has lived with the current partner for 12 consecutive months
	 
	 	•	 	Coverage is provided for only one spouse at a time

	–	 	unmarried children under 21 years of age who are dependent on the employee for support. This includes natural
or legally adopted children who may or may not be living in the employee’s household. Also covered are step
children or any children related to the employee by blood or marriage provided they live in the employee’s
household and the employee is financially and legally responsible for them.
	 
	–	 	a mentally retarded or physically handicapped child over the age of 21 and who had the condition and was
insured as the employee’s dependent immediately before the age of 21.
	 
	–	 	unmarried children over 21 years of age and in fulltime attendance at a school or university and who are
dependent upon the employee for support.
	 
	–	 	The employer agrees that it will notify the Union of changes to the benefit carrier and

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	 	 	benefits will not be reduced without mutual agreement with the Union.

Upon request, the employer agrees to provide the Union with copies of the Benefit level
within the Master Benefit Plans.

Cost of the Plan

The Company pays the entire cost of the group benefits described in this agreement.

Claims

All claims must be submitted through your administrator. Do not send them directly to the
insurance company as this will only delay your payment. It is the employee’s responsibility to
supply any information necessary to substantiate a claim.

Unless otherwise specified the company will reimburse the cost for required medical forms, under
the insurance benefit program, to a maximum of $50 per form.

Life Insurance

Your group life policy provides coverage for yourself and your dependents.

	 	 	 	 	 	 	 	 	 
	Employee coverage

	 	 	 	 	 	$	50,000	 
	Dependent’s Insurance

	 	–
	 	Spouse
	 	$	10,000	 
	 

	 	–
	 	each child
	 	$	5,000	 

	 	 	Coverage – 24 hour basis, on and off the job, valid anywhere in the world, subject to policy exclusions.

Beneficiary

In the event of a death from any cause while the insurance is in force, the amount of life
insurance is payable to your estate, or to the person you have named as beneficiary. You may
change the beneficiary by applying to the Administrator, subject to any legal requirements
affecting such right.

Disability

If you become unable to engage in any gainful employment due to sickness or injury, your life
insurance will continue during the time you are disabled. Proof of your total disability will be
required from time to time.

Conversion

At termination of employment you may convert your life insurance regardless of health, to an
individual policy at rates dictated by the insurance company depending on your age at time of
application. You have 31 days following termination to elect this option, otherwise the option is

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invalid. It should be emphasized that you are not offered any special rate, therefore, for your
own protection, you should check the rates of other insurance companies.

ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE

If one of the following losses should occur within one year following an accident, payment will be
made as follows:

FOR DEATH

	 	 	 	 	 	 	 
	—

	 	The principal sum which is
	 	$	50,000	 

FOR DISMEMBERMENT

The amount of Principal Sum for any Employee covered under this provision shall be in accordance
with the Schedule of Benefits of the Employer for the Basic Group Life Policy with the current Life
carrier:

	1.	 	An amount equal to 200% of the Amount of the Principal Sum for:

	 	(a)	 	paraplegia (total paralysis of both lower limbs), or
	 
	 	(b)	 	hemiplegia (total paralysis of one side of the body), or
	 
	 	(c)	 	quadriplegia (total paralysis of all four limbs), or
	 
	 	(d)	 	loss of use of both arms, or
	 
	 	(e)	 	loss of use of both legs, or
	 
	 	(f)	 	loss of use of one arm and one leg on the same side of the body.

	2.	 	An amount equal to 100% of the Amount of the Principal Sum for:

	 	(a)	 	loss of both arms or both legs, or
	 
	 	(b)	 	loss of both hands or both feet, or
	 
	 	(c)	 	loss of sight of both eyes, or
	 
	 	(d)	 	loss of one hand and one foot, or
	 
	 	(e)	 	loss of use of both hands, or
	 
	 	(f)	 	loss of use of both feet, or
	 
	 	(g)	 	loss of use of one hand or arm and one leg, or
	 
	 	(h)	 	loss of sight of one eye and one hand or one foot, or
	 
	 	(i)	 	loss of speech and hearing in both ears.

	3.	 	An amount equal to 75% of the Amount of the Principal Sum for:

	 	(a)	 	loss of one arm, or
	 
	 	(b)	 	loss of use of one arm, or

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	 	(c)	 	loss of one leg, or
	 
	 	(d)	 	loss of use of one leg.

	4.	 	An amount equal to 66 2/3% of the Amount of the Principal Sum for:

	 	(a)	 	loss of one hand, or
	 
	 	(b)	 	loss of one foot, or
	 
	 	(c)	 	loss of speech, or
	 
	 	(d)	 	loss of hearing in both ears, or
	 
	 	(e)	 	loss of sight of one eye, or
	 
	 	(f)	 	loss of use of one hand, or
	 
	 	(g)	 	loss of use of one foot.

	5.	 	An amount equal to 33 1/3% of the Amount of the Principal Sum for:

	 	(a)	 	loss of the thumb and index finger of the same hand, or
	 
	 	(b)	 	loss of four fingers of one hand, or
	 
	 	(c)	 	loss of hearing in one ear.

	6.	 	An amount equal to 25% of the Amount of the Principal Sum for the loss of all toes of
one foot.

Of the losses not covered by this plan, the more important ones are:

	–	 	suicide or self destruction or any attempt thereat
	 
	–	 	war, hostilities or riots
	 
	–	 	travel or flight in any aircraft other than as a conventional passenger.

If a claim is established for total disability, the insurance will be continued for the duration of
total disability but not beyond your 65th birthday.

Written notice of your claim must be received within 30 days and written proof of loss must be
received within 90 days after the loss.

The beneficiary named under your life insurance policy will be the same on this policy, unless
stated otherwise.

DISABILITY INCOME PLAN

To qualify for this benefit you must be considered totally disabled. For the purpose of
determining total disability, the following criteria shall be followed:

During the period of Weekly Indemnity coverage, an individual is considered totally disabled if you
are prevented from doing your own job by reason of illness or injury.

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During the first two years of Long Term Disability coverage, an individual will be considered
totally disabled if you are prevented from engaging in your own job by reason of illness or injury.

Beyond the first two years of Long Term Disability coverage you will be considered totally disabled
if you are prevented by illness or injury from engaging in any gainful occupation for which you
are, or may reasonable become, suited by education, training or experience.

You must be under the care of a duly qualified physician or surgeon licensed to practice medicine.
Proof of disability will be required from time to time. Forms will be issued to you for completion
by yourself and the attending physician.

On termination of employment, disability coverage will cease as of that date.

Weekly Indemnity Benefits

Benefits will be provided for a maximum 52 week period in conjunction with Employment Canada. The
first 26 weeks of disablement is covered by the plan, a maximum of 15 weeks is covered by
Employment Canada (at UIC rates) and the subsequent 11 weeks are covered by the plan. Benefits
will be paid by the plan from the first day of an accident or hospitalization and from the fourth
day of illness, as per schedule below:

Effective January 1, 2004           $600 per week

	 	(a)	 	Hospitalization shall be meant to include overnight admittance to a recognized
hospital, as well as “Day Surgery”, performed in a recognized medical facility, that
medically prevents the eligible employee from performing their work duties.

Long Term Disability

Long term disability benefits will commence after weekly indemnity benefits expire. Your long term
disability benefit is payable until age 65 or until you return to active employment in the company,
terminate employment or die. The long term disability benefits are as follows:

Effective January 1, 2004           $1,100 per month

If you return to active full-time employment after receiving LTD benefits and again become disabled
due to the same disability within 6 months, LTD benefits will begin immediately without any waiting
period. If a subsequent disability arises from causes entirely unrelated to a previous disability
and you have been back to work on a full-time basis for at least one month, a new waiting period
will be established.

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As with most benefits, Long Term Disability increases are not retroactive and the benefit that an
employee is eligible for is the benefit level that was in place at the time of the original
disability.

Benefits will not be payable for disability caused by pregnancy, intentional self-inflicted
injuries, by war, riot or civil commotion, or by sickness or injury resulting from employment for
wage or profit other than by Prudential Steel Ltd.

To assure prompt payment:

	–	 	obtain forms from the administrator of the plan one month before the
end of your waiting period.
	 
	–	 	complete your portion of the forms.
	 
	–	 	have your physician complete forms where applicable.
	 
	–	 	submit required forms promptly to the administrator of the plan, under
no circumstances later than 90 days after the end of your waiting
period.

ALBERTA HEALTH CARE

Basic health benefits are provided through Alberta Health Care. This plan covers standard hospital
accommodations and doctors charges up to the approved fee schedule for office, home and hospital
visits. This plan also covers hospital services such as operating room, laboratory examinations,
drugs administered in hospital, diagnostic and therapeutic treatments, X-rays and the services of
some paramedical practitioners such as chiropractors, naturopaths, etc.

Your Alberta Health Care number is required at time of employment in order to place you on our
group account. If you are new in the province, or an employee previously registered as a dependent
on your parents registration, a registration form will have to be completed.

Hospital expenses incurred outside of Canada will have to be paid directly by you. Your receipts
will then be submitted to Alberta Health care for payment, and any unpaid amount can be submitted
to the insurance carrier for reimbursement.

The legislation creating medicare prohibits insuring excess physicians’ fees, commonly known as
extra billing and hospital user fees. Consequently, our supplementary plans cannot insure these
charges.

Income tax regulations require that the Company report, as part of your income each year, the
premiums paid on your behalf for Alberta Health Care.

Should the Alberta Provincial Government make a substantial change to the Alberta Health Care
System during the term of this agreement (minus one day) then the Company and the Union will meet
to discuss the impact on Prudential Steel Ltd. employees.

MAJOR MEDICAL

- 54 -

 

Your major medical plan will pay reasonable charges for the following if medically necessary:

	–	 	by a licensed hospital, limited to semi-private accommodations
including out-patient charges, in Canada, and for a temporary period
outside Canada in the case of a resident of Canada who requires
hospitalization due to an emergency while travelling or on vacation or
because treatment is not available in Canada. In all cases, charges
by a chronic or convalescent hospital for a covered person 65 years of
age or over, shall be excluded.
	 
	–	 	for services rendered outside the province of residence of the covered
person, and excludes such services rendered outside Canada except when
such services are required due to an emergency while travelling or on
vacation or when treatment is not available in Canada, by a physician,
legally licensed to practice medicine, in excess of the charges
allowed under the health insurance plan of the province of residence
of the covered person. The maximum amount payable by the company for
such services shall not exceed the amount specified in the fee
schedule of the province of residence of the covered person, except in
the case of an emergency while the covered person is travelling or on
vacation or when treatment is not available in Canada when the amount
payable shall be unlimited.
	 
	–	 	for 90% of drugs and medicines which require the written prescription
of a physician or dentist for purchase, excluding the following:

	 	(a)	 	food and dietary supplements
	 
	 	(b)	 	cosmetic or hygienic products
	 
	 	(c)	 	experimental drugs and medicines
	 
	 	(d)	 	drugs and medicines not considered by the Canadian Medical Association to be
therapeutically useful

	–	 	for services of a chiropractor, osteopath, naturopath, podiatrist, physiotherapist, speech
therapist and masseur but not to exceed $15.00 per visit, subject to a maximum of 20 visits
for each type of such practitioner per calendar year for each covered person and for services
of a psychologist not to exceed $1,000.00 for each covered person per calendar year.

Charges for services by any of the above practitioners who are members of the College of
Physicians and Surgeons are paid by the provincial health insurance plan.

	 	–	 	for X-rays by a chiropractor not to exceed $45.00 for each covered person per calendar
year.
	 
	 	–	 	for surgery performed by a podiatrist not to exceed $200.00 for each covered person per
calendar year.

	–	 	for visual motor therapy by an optometrist not to exceed $10.00 per half-hour.
	 
	–	 	for services of a dentist for the excision of cysts and tumours and for treatment due to accidental injury to natural teeth
from an external blow, excluding biting accidents, provided treatment is received within 12 months of the accident.

- 55 -

 

	–	 	for ambulance service to the nearest hospital where treatment is available.
	 
	–	 	for private duty nursing service in the home of the covered person, and in hospital outside Canada if the covered person is
a resident of Canada, by a registered graduate nurse not ordinarily resident in the home and not related to the covered
person, provided such service can be performed only by a registered graduate nurse and not by a person of lesser
qualifications, and was certified as medically necessary by the attending physician. For any in-home private duty nursing
services only 75% of the charges incurred shall be included as a covered expense and the total amount payable for such
charges shall not exceed $5,000.00 for each covered person per calendar year.
	 
	–	 	for an artificial eye, arm, hand, leg, foot, breast or orthopaedic braces, including repairs and adjustments or replacement
if repair is not possible, or to accommodate a growing child.
	 
	–	 	for stump socks, limited to six pair a year, for each covered person.
	 
	–	 	for glasses or contact lenses following a cataract operation limited to $100.00 for each eye once only.
	 
	–	 	for oxygen and its administration.
	 
	–	 	for rental of a standard wheelchair, crutches, hospital bed or iron lung recommended and approved by a physician legally
licensed to practise medicine.

	 	–	 	for the following items if recommended and approved by a physician legally licensed to
practice medicine; elastic stockings, limited to two pair per calendar year for each
covered person, traction appliance, spinal and abdominal medical supports, varco traction
kits, belts and similar appliances, neck braces, cervical collars, ileostomy or colostomy
kits.

	–	 	for orthopaedic shoes custom built, the charge reduced by the cost of
ordinary shoes, and orthopaedic modifications to shoes are recommended
and approved by a physician legally licensed to practise medicine or
by a podiatrist.
	 
	–	 	hearing aids (no maximum coverage within reason, but not including
experimental hearing aids) once every three (3) years.
	 
	–	 	for medically required varicose vein treatment.

     Limitations & Exclusions — No payment shall be made for:

	–	 	any covered expenses incurred by a dependent during a period of
hospital confinement which began before the date such dependent became
insured hereunder. This limitation shall not apply to a child who
became insured as a dependent at birth.

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	–	 	medical or other expenses in connection with periodic health check-ups
or examinations, travel for health, dental or services other than
those covered under this plan, or cosmetic surgery.
	 
	–	 	any injury or sickness for which a covered person is entitled to
indemnity or compensation under any Workers’ Compensation Act or
comparable legislative or insurance provision.
	 
	–	 	any expenses for which a covered person is not required to pay, or for
any expense to which the employee is entitled to reimbursement under
any non-contractual arrangement, or under the health insurance plan of
the province in which the covered person resides, whether or not such
covered person is insured thereunder.
	 
	–	 	any charges which are not permitted to be insured.
	 
	–	 	any injury or disease which resulted from an act of war or hostilities
of any kind.
	 
	–	 	any deterrent or similar fee charged by a hospital other than a
chronic care co-payment fee for a covered person under 65 years of
age.

Claims

Written notice and satisfactory proof of the incurring of an expense for which benefits are claimed
hereunder must be received by the Administrator not later than 90 days following the end of the
calendar year in which the expense was incurred.

DENTAL

AS THE FINAL DETERMINATION OF DENTAL WORK REQUIRED AND COVERED IS THE DETERMINATION OF THE
INSURANCE CARRIER, IT IS RECOMMENDED THAT PRE-DETERMINATION BE COMPLETED ON ANY DENTAL WORK IN
EXCESS OF $300.

The Health Guard Dental Benefits pays up to:

	–	 	100% of the reasonable charges for basic dental services, and 50% of the reasonable charges for orthodontic and
restoration services; as provided by your dentist or licensed dental technician.
	 
	–	 	Dental coverage shall follow the current CLHIA guidelines during the term of this Agreement.

Covered expenses include:

BASIC 100%

	–	 	routine examinations (not more than one examination every six months)
	 
	–	 	x-rays
	 
	–	 	fillings other than inlays and crowns

- 57 -

 

	–	 	extractions
	 
	–	 	oral surgery which includes procedures such as excision of cysts and tumours
	 
	–	 	cleaning and scaling
	 
	–	 	fluoride treatments
	 
	–	 	periodontal care (treatment of gums) excluding periodontal prothesis (splinting) and orthodontic treatment
(repositioning)
	 
	–	 	endodontics, e.g. root canal therapy
	 
	–	 	space maintainers and regainers for missing primary teeth
	 
	–	 	rebasing and relining of dentures

ORTHODONTIC 50%

	–	 	orthodontic treatment (repositioning) and appliances up to a
maximum of $3,500 per covered person per lifetime.

RESTORATIVE 50%

	–	 	inlays and onlays
	 
	–	 	crowns and bridges, limited to once in every five years
	 
	–	 	pontics (false tooth)
	 
	–	 	dentures (not duplicate set), limited to one set every five years
	 
	–	 	bridge and denture repair
	 
	–	 	limited to a maximum of $5,000 per covered person per year

Payment shall not exceed a portion of the amount shown in the fee schedule of the dental
association of your province of residence when treatment was provided.

Limitations and Exclusions — No payment shall be made for:

	–	 	expenses payable under any other provision of this policy.
	 
	–	 	expenses incurred for cosmetic purposes except covered dental expenses
for treatment required for correction of damage caused by accidental
injury.
	 
	–	 	expenses for services received because of dental injury for which a
covered person is entitled to indemnity or compensation under any
Workers’ Compensation Act or comparable legislative or insurance
provision.
	 
	–	 	expenses for services received for which a covered person is not
required to pay, including any expenses reimbursed, assumed or allowed
under any non-contractual plan, scheme or arrangement.
	 
	–	 	expenses in respect of any dental injury which has resulted from an
act of war or hostilities of any kind.

- 58 -

 

	–	 	expenses for services for which coverage is provided for the covered
person under any other insurance plan or policy, to the extent of such
coverage.

- 59 -

 

Claims

Dental claim forms for each family member must be completed by the dentist and you. The form
should then be submitted to the administrator of the plan.

Written notice of any expense incurred on account of which benefits are payable hereunder must be
given to the Company within 30 days from the date such expense was incurred. Written proof
satisfactory to the Company of any expense on account of which benefits are claimed must be
furnished to the Company within 90 days from the date such expense was incurred.

Vision Care

	(a)	 	Safety

One pair of safety prescription glasses per year will be supplied to those who
require them for their work.

This plan covers approved safety frames, lenses and dispensing fees to a maximum of
$150.00 for single vision and $250.00 for bifocal lenses. The supplier of the
safety glasses shall be appointed by the Company.

	(b)	 	Family

One pair of prescription glasses or contact lens per family member once every two
years to a maximum of $250 per family member every two years.

This maximum of $250 per family member may be used to offset the cost of laser
surgery, however, this maximum shall apply to each individual occurrence of laser
surgery and shall not be cumulative.

The administrator will supply you with the necessary forms, prices, choice of
frames, and instructions, if required, on purchasing the glasses.

Eye Examination

Eye examinations not covered by Alberta Health Care will be covered to a maximum of $55.00 per
examination and shall be limited to one examination per covered person per year.

- 60 -

 

APPENDIX (F)

TRADESMEN’S TOOLS

	(a)	 	Employee-owned hand tools which are broken in the performance of work for the Company shall
be replaced by the Company upon presentation of the broken tool to the Maintenance Foreman or
the Electrical Foreman, as applicable, by the employee within the next working day following
date of breakage, if, in the opinion of the Maintenance Foreman or the Electrical Foreman, as
the case may be, the tool was required for performance of work for the Company and the work
was performed in a careful and workmanlike manner including the use of the proper tool for the
job.

	(b)	 	In addition to (a) above, a cash tool allowance as set out below, will be paid on completion
of one (1) year of service and will be paid on the pay day immediately following May 31 of
each year. For employees working less than a full year amounts will be pro-rated as at May
31.

	 	 	 	 	 
	1.
	 	Machinists	 	$100.00
	2.
	 	Millwrights	 	$100.00
	3.
	 	Electricians	 	$  50.00
	4.
	 	Maintenance Welder	 	$  50.00
	5.
	 	Fab. Welder	 	$  50.00
	6.
	 	H.D. Mechanic	 	$100.00

(c) Each tradesman must supply his own hand tools as per each department’s listed requirement.

APPENDIX (G)

PROTECTIVE CLOTHING

The Company will supply the following protective clothing under conditions as shown:

	1.	 	For employees whose regular job is on the inside and who are requested to work outside during
their regular shift, without having been notified of such before leaving for work when outside
temperatures are +30 F or lower.

The Company will provide:

- 61 -

 

	 	(a)	 	A winter lining for the safety helmet.
	 
	 	(b)	 	A pair of working gloves.
	 
	 	(c)	 	A heavy duty parka.
	 
	 	(d)	 	A heavy duty pair of pants.
	 
	 	(e)	 	A pair of winter boots.

This clothing must be turned in as soon as the employee is no longer needed
outside.

	2.	 	For employees whose regular job is on the inside and who are requested to work outside during
their regular shift, without having been notified of such before leaving for work when it is
raining.

The Company will provide:

	 	(a)	 	A waterproof coat or suit.
	 
	 	(b)	 	A pair of overshoes.

This clothing must be turned in as soon as it stops raining or whenever the
employee is no longer needed outside.

	3.	 	For regular outside employees who are required to work outside while it is raining.

The Company will provide:

	 	(a)	 	A waterproof coat or suit.

This clothing must be turned in as soon as it stops raining. None of the
aforementioned clothing can be taken outside the Company premises.

APPENDIX (H)

LOCKERS

Full size lockers will be provided for all employees.

- 62 -

 

APPENDIX (i)

PENSION PLAN

U.S.W.A., L.U. 7226 and Prudential Steel Ltd.

The Company to amend the Pension Plan effective January 1, 2001 to incorporate the following
features which shall be made part of the renewed Collective Agreement.

	1.	 	Eligibility

All employees who are covered by the Collective Agreement have completed one (1)
year of service to become members with service credited from date of hiring

	2.	 	Funding

Non-contributory; Company to bear entire cost.

	3.	 	Normal (Unreduced Pension Benefits)

Employees will be eligible for an unreduced basic pension at age 65 or after 30
years of service.

In addition to the basic pension described above, active employees with at least 30
years of service will be eligible for a pension supplement payable until the
retiree’s 65th birthday.

	4.	 	Monthly Pensions Payable

Effective January 1, 2004 the basic pension will be equal to $51.50 per month times
years of service with a maximum credit of 35 years of service.

Effective January 1, 2005 the basic pension will be equal to $53.00 per month times
years of service with a maximum credit of 35 years of service.

Effective January 1, 2006 the basic pension will be equal to $54.50 per month times
years of service with a maximum credit of 35 years of service.

- 63 -

 

Effective January 1, 2007 the basic pension will be equal to $58.00 per month times
years of service with a maximum credit of 35 years of service.

Effective January 1, 2004 there shall be a basic pension benefit equal to $58.00
per month times years of service, with a maximum of 35 years of service, for those
employees who retire between January 1, 2004 and December 31, 2006.

Effective January 1, 2004, the Pension supplement will be equal to $20 per month
times years of service with a maximum credit of 30 years of service.

Effective January 1, 2007, the Pension supplement will be equal to $30 per month
times years of service with a maximum credit of 30 years of service.

Effective January 1, 2004, the Pension supplement will be equal to $30 per month times years of
service, with a maximum credit of 30 years of service for those employees who retire
between January 1, 2004 and December 31, 2006.

	5.	 	Reduced Early Retirement Pension

	 	(a)	 	Basic Pension

At the employee’s sole discretion, after age 55, and with 10 or more years
of service, but less than 30 years of service, the employee may retire
with a basic pension reduced by 1/2 of 1% for each month that the
retirement date precedes his 65th birthday.

	 	(b)	 	Supplemental Pension

At the employee’s sole discretion, after age 55, and with 10 or more years
of service, but less than 30 years of service, the employee may retire
with a supplemental pension reduced by 1/2 of 1% for each month that the
retirement date precedes his 65th birthday.

	6.	 	Vesting

	 	–	 	Employees shall be fully vested in accrued basic
pension benefits as required under the Alberta Pension Legislation. Employees
terminating with vested basic pension rights are entitled to a deferred vested
pension payable at age 65.

- 64 -

 

	 	S	 	 Current vesting is 5 years of continuous service for full vesting and 2
years of service for vesting of credited service received after January 1,
2000.

	7.	 	Survivor Pension

The surviving spouse of an employee who dies after becoming eligible for any form
of basic pension benefit under this Plan (whether he is retired or still
employed by the employer), shall receive a monthly pension for life equal to 60% of
the basic pension, which the deceased spouse was receiving, or would have
been entitled to receive, assuming the date of his death had been his normal
retirement date for the purpose of this Plan.

	8.	 	Credited Service

There will be two types of credited service for the purpose of calculating benefits
under the Plan:

	 	(a)	 	Past Services:

	 	S	 	 All service with the Company up to the effective date of this Plan.
	 
	 	S	 	 Past service credit shall include service for periods of time that an
employee was on Official Lay-Off status for years prior to January 1,
1990. This pension “Buy-Back” shall include only those employees who have
a current seniority start date of December 31, 1989 or earlier.

	 	(b)	 	Current Service:

Service after the effective date of this Plan to be calculated in years and
tenths of years, as follows:

	 	–	 	Any year in which an employee receives 1,700 credited
hours or more shall constitute one year of credited service.
	 
	 	–	 	Where an employee has fewer than 1,700 credited hours
to his credit during a year he shall be credited with 1/10 year of service
for each 170 credited hours.

Credited hours shall be meant to include:

- 65 -

 

	 	1.	 	Hours for which wages are received from the Company including
vacation hours and statutory holidays.
	 
	 	2.	 	Hours the employee would normally have received while
receiving weekly indemnity benefits of the Workers’ Compensation Board, or the
Company’s Insurance Welfare Program, while in the employ of the Company.
	 
	 	3.	 	Hours the employee would normally have received while on
temporary Union business (not Union Employment).

	9.	 	Pension Committee

The Union shall appoint a Pension Committee. It is agreed that the Union Pension Committee
shall be supplied with:

	 	–	 	Pension Plan statistics;
	 
	 	–	 	Periodic financial and actuarial reports on the Plan;
	 
	 	–	 	Verification of service credits.

The Pension Agreement will provide for final settlement by an arbitrator, if necessary, if disputes
arise within the Pension Plan.

	10.	 	The Company shall contribute to a Union administered post retirement benefit fund.

- 66 -

 

	 	 	 
	APPENDIX (J)

LINES OF PROGRESSION

PRODUCTION AND SLITTER

	 	X DESIGNATES 30 DAYS

2X DESIGNATES 60 DAYS

3X DESIGNATES 90 DAYS

- 67 -

 

	 	 	 
	APPENDIX (J)

LINES OF PROGRESSION

QUALITY CONTROL

	 	X DESIGNATES 30 DAYS

2X DESIGNATES 60 DAYS

3X DESIGNATES 90 DAYS

- 68 -

 

	 	 	 
	APPENDIX (J)

LINES OF PROGRESSION

YARD

	 	X DESIGNATES 30 DAYS

2X DESIGNATES 60 DAYS

3X DESIGNATES 90 DAYS

- 69 -

 

	 	 	 
	APPENDIX (J)

LINES OF PROGRESSION

OIL COUNTRY GOODS

	 	X DESIGNATES 30 DAYS

2X DESIGNATES 60 DAYS

3X DESIGNATES 90 DAYS

- 70 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD. (CALGARY)

and

UNITED STEELWORKERS OF AMERICA

LOCAL 7226

With regard to Article 5  —  Union Security:

	5.02	 	Institution of initiation fees at $10.00.
	 
	 	 	This document is to insure the smooth operation in the implementation of
initiation fees in the amount of $10.00.
	 
	 	 	Commencing the month following the month of hire, the Company will deduct an
initiation fee from the new employee in the amount of $10.00.
	 
	 	 	This deduction shall take place at the end of the first full pay period in
the month following the month of hire.
	 
	 	 	Such amounts deducted shall be sent to the Union with a separate accounting
in the same fashion as the regular union dues deductions.

Signed this                      day of                     , 2004.

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	 

	 	 	 	Local 7226	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 71 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

Local 7226

1. Re: Pay for Lost Time for Union Business

The Company agrees to pay all lost time for union business, and bill Local 7226 for such
time as not covered by Article 11.07, on a monthly basis.

IN WITNESS WHEREOF the Parties hereto have executed this Letter Of Understanding on this                      day of                                         , 2004.

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	 

	 	 	 	(on behalf of Local Union 7226)	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 72 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA,

Local 7226

Effective January 1, 1991, the Company agrees to pay two and one-half (2-1/2) cents per hour for
each and every hour actually worked by an employee in the Bargaining Unit to the United
Steelworkers of America Local 7226 Education Fund. Such contributions shall be made solely by the
Company and the Company shall not deduct such contributions or any portion thereof from an
employee’s wages. Such contributions are in excess of the wage rate set out in the Collective
Agreement, and do not constitute a payment of wages, or any portion of a payment of wages. Upon
the wages of an employee becoming due the said contributions of two and one-half (2-1/2) cents per
hour shall be calculated by the Company, and set aside for the Trustees of the said Fund and the
gross contributions of the Company for all hours worked by all employees in the Bargaining Unit in
a month shall be forwarded by the Company to the said fund at #150, 2880 Glenmore Trail, S.E.,
CALGARY, Alberta T2C 2E7, no later than the fifteenth (15th) of the month following.

It is understood that the contributions above are for the benefit of members of the Union as
recognized by the Trustees of the said Fund, and that the Fund shall be administered solely by the
Trustees of the said Fund, and that the Trustees are empowered to make from time to time reasonable
rules in this respect.

In witness whereof the parties hereto have executed this Agreement this day of                     , 2004.

	 	 	 	 	 	 	 
	For the Company

	 	 	 	For the Union	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 73 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA,

Local 7226

It is understood and agreed that the officially elected President of Local 7226, while employed by
Prudential Steel Ltd. and while serving in the capacity of President of Local 7226, shall be put on
straight day shift in the job he normally holds as an extra employee. In addition, he shall remain
accessible at all times to the members of Local Union 7226.

Pay shall be for all hours worked, or as otherwise provided for under the Collective Agreement.

In witness whereof of the parties hereto have executed this Agreement this                      day of                                         , 2004.

	 	 	 	 	 	 	 
	For the Company

	 	 	 	For the Union	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 74 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.,

and

UNITED STEELWORKERS OF AMERICA

Local 7226

The Company agrees to the Union request to deduct one (1) cent per hour worked from employee’s pay
and remit such deduction to the United Steelworkers of America Humanities Fund as advised by the
Union.

In witness whereof the parties have executed this Letter of Understanding on this                      day of                     , 2004.

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 75 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

Local 7226

The Company agrees with the Union’s request to establish a payroll deduction plan for workers who
want to contribute to the Steelworkers Savings Plan. Details of such plan shall be as mutually
agreed between the Company and the Union.

In witness whereof the parties hereto have executed this Agreement this                      day of                                         , 2004.

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 76 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

Local 7226

The Company agrees to a severance adjustment allowance for employees covered by this Collective
Agreement and such allowance shall be as follows:

The Severance Adjustment Allowance shall be equal in total to two (2) weeks’ pay times years of
seniority to a maximum of fifty-two (52) weeks, payable in monthly instalments, to be no greater
than $400 per month, until the terminated person’s individual amount is exhausted.

Alternatively, an employee affected by a plant closure may elect to receive a lump sum payment
equal to 80 hours pay times year of service.

To be eligible, the person must have been actively employed by the Company for five years credited
pension service and hold status on the Plant Seniority List.

To receive a benefit, the person must have been on layoff for two (2) continuous years or have been
permanently laid off as a result of a plant shutdown.

The person must apply in writing and expressly give up all recall rights.

The Company and the Union agree that for the term of this Collective Agreement the Company will
establish a Book Account of Ten (10) Cents per hour worked by all employees covered by the
Agreement. The Account will be administered by the Company and the Union will be provided with
quarterly statements.

Should the account ever fail to have sufficient funds to meet the monthly payments, the Company
shall advance the necessary amount to cover that month’s expense and recoup such advance from
future accruals.

Any employee accepting participation in the Severance Adjustment Allowance shall waive all rights
past, present and future against the Company as a result of his employment and or severance from
the Company.

- 77 -

 

In witness whereof the parties hereto have executed this Letter of Understanding this
                     of                     , 2004.

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 78 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

AND

UNITED STEELWORKERS OF AMERICA

LOCAL UNION 7226

It is understood and agreed that the Group Leader positions will be filled by hourly employees at
the following levels of activity in each department.

	 	 	 
	 	 	 
	Job Classification	 	Level of Activity Required to Fill Vacancy
	Mill Line Group Leader

	 	1 per shift per mill
	 
	 	 
	Inspection Group Leader

	 	1 per line per shift per mill
	 
	 	 
	Threading Line Group Leader

	 	1 per shift of threading
	 
	 	 
	Laboratory Group Leader

	 	1 when Mill I and/or Mill II is on one shift:
	 

	 	2 when Mill I and Mill II are on 2 or more shifts
	 
	 	 
	Yard Group Leader

	 	1 when there are 10 or more employees on a shift
	 
	 	 
	Senior H.D. Mechanic Group Leader

	 	1 when 9 H.D. Mechanics are employed
	 
	 	 
	Heavy Duty Mechanic Group Leader

	 	1 when 5 H.D. Mechanics are employed
	 
	 	 
	Machinist Group Leader

	 	1 when 9 Machinists are employed
	 
	 	 
	Fabrication Group Leader

	 	1 when 8 Fabrication employees are employed
	 
	 	 
	Electrical Group Leader

	 	1 when 8 Electricians are employed

- 79 -

 

Signed this                                         day of                                         , 2004.

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 80 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

AND

UNITED STEELWORKERS OF AMERICA

Local 7226

Procedure for crew movements between the upsetter and threading lines to replace procedure dated
October 18, 1979.

Movement of upsetter crew to threading line on a temporary basis:

	 	 	 	 	 	 	 
	Upsetter line	 	Job class	 	Threading line	 	Job class
	Group Leader

	 	@ 14 goes to
	 	Group Leader
	 	@ 14
	Upsetter Operator

	 	@ 12 goes to
	 	Threading Machine Op.
	 	@ 12
	          ”

	 	@ 12 goes to
	 	Thread End Insp.
	 	@ 12
	          ”

	 	@ 12 goes to
	 	Bucker Operator
	 	@ 12
	          ”

	 	@ 12 goes to
	 	Scale Operator
	 	@ 8
	Fin Grinder

	 	@ 7 goes to
	 	Drift Operator
	 	@ 7
	          ”

	 	@ 7 goes to
	 	Material Handler
	 	@ 7

Movement of threading crew to upsetting line on a temporary basis:

	 	 	 	 	 	 	 
	Threading line	 	Job class	 	Upsetter line	 	Job class
	Group Leader

	 	@ 14 goes to
	 	Group Leader
	 	@ 14
	Threading Machine Op.

	 	@ 12 goes to
	 	Upsetter Operator
	 	@ 12
	Thread End Insp.

	 	@ 10 goes to
	 	          ”
	 	@ 12
	Bucker Operator

	 	@ 10 goes to
	 	          ”
	 	@ 12
	Scale Operator

	 	@ 7 goes to
	 	          ”
	 	@ 12
	Drift Operator

	 	@ 5 goes to
	 	Fin Grinder
	 	@ 7
	Material Handler

	 	@ 4 goes to
	 	          ”
	 	@ 7

	1.	 	When moving from the upsetter to the threading line, the leader’s job will be filled first by
the senior man in O.C.G. department with recall rights then by the senior Upsetter-threader
Operator.
	 
	2.	 	Job openings will be filled first by personnel with recall rights, then by job postings.
Operator jobs will be posted as Upsetter-Threader Operators. All other jobs will be posted by
CWS job titles.
	 
	3.	 	Order of crews in the Oil Country Goods Department shall be:

- 81 -

 

Crew 1 — Threading, Crew — 2 Threading, Crew — 3 Threading, Crew 4 — Upsetter, Crew
5 — Threading, Crew 6 — Upsetter, Crew 7 — Threading, Crew 8 — Threading, Crew 9 -
Upsetter

	4.	 	Premium Threading Crews:

     1 Premium Crew to Upsetter

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	1 Shift Leader
	 	 	(20	)	 	to Upset Operator
	 	 	(20	)
	 

	 	1 Senior CNC Operator
	 	 	(14	)	 	to Upset Operator
	 	 	(14	)
	 

	 	1 CNC Operator
	 	 	(14	)	 	to Upset Inspector
	 	 	(14	)
	 

	 	1 Swage/Phosphate
	 	 	(8	)	 	to Fin Trimmer
	 	 	(8	)
	 

	 	1 Swage/Phosphate
	 	 	(8	)	 	to Material Handler
	 	 	(8	)

     (1) 2 Premium Crews to Threading

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	1 Senior Shift Leader
	 	 	(20	)	 	to Leadhand
	 	 	(20	)
	 

	 	1 Shift Leader
	 	 	(20	)	 	to Thrd Machine Opr
	 	 	(20	)
	 

	 	1 Senior CNC Opr
	 	 	(14	)	 	to Thread Inspector
	 	 	(14	)
	 

	 	1 CNC Operator
	 	 	(14	)	 	to Bucker Operator
	 	 	(14	)
	 

	 	1 CNC Operator
	 	 	(14	)	 	to Drift Operator
	 	 	(14	)
	 

	 	1 CNC Operator
	 	 	(14	)	 	to Scale Operator
	 	 	(14	)
	 

	 	4 Swage/Phosphate
	 	 	(8	)	 	to Material Handler
	 	 	(8	)

     (2) 2 Premium Crews to Upsetter

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	1 Shift Leader
	 	 	(20	)	 	to Upset Operator
	 	 	(20	)
	 

	 	1 Shift Leader
	 	 	(20	)	 	to Upset Operator
	 	 	(20	)
	 

	 	1 CNC Operator
	 	 	(14	)	 	to Upset Operator
	 	 	(14	)
	 

	 	1 CNC Operator
	 	 	(14	)	 	to Upset Operator
	 	 	(14	)
	 

	 	1 CNC Operator
	 	 	(14	)	 	to Upset Inspector
	 	 	(14	)
	 

	 	1 CNC Operator
	 	 	(14	)	 	to Upset Inspector
	 	 	(14	)
	 

	 	1 Swage/Phosphate
	 	 	(8	)	 	to Fin Trimmer
	 	 	(8	)
	 

	 	1 Swage/Phosphate
	 	 	(8	)	 	to Fin Trimmer
	 	 	(8	)
	 

	 	2 Swage/Phosphate
	 	 	(8	)	 	to Material Handler
	 	 	(8	)

- 82 -

 

Signed on behalf of:

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

Signed this                      day of                     , 2004.

- 83 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

or their successors and/or

their assigns, hereinafter

called the “Company”, of

the first part

and

UNITED STEELWORKERS OF AMERICA, LOCAL 7226

hereinafter called the

“Union”, of the second part

Effective January 1, 1991, the Company agrees to pay five (5) cents per hour for each and every
hour actually worked by any employee in the bargaining unit to the United Steelworkers of America,
Local 7226 (Prudential) Safety Equipment Trust Fund. Such contributions shall be made solely by
the Company and the Company shall not deduct such contributions or any portion thereof from an
employee’s wages. Such contributions are in excess of the wage rate set out in the Collective
Agreement, and do not constitute a payment of wages, or any portion of a payment of wages. Upon
the wages of an employee becoming due the said contributions of five (5) cents per hour shall be
calculated by the Company, and set aside for the trustees of the said Fund, and the gross
contributions of the Company for all hours worked by all employees in the bargaining unit in a
month shall be forwarded by the Company to the said Fund at 150, 2880 Glenmore Trail S. E. Calgary,
Alberta, T2C 2E7, no later than the fifteenth (15th) of the month following.

It is understood that the contributions above are for the benefit of members of the Union as
recognized by the trustees of the said Fund, and that the Fund shall be administered solely by the
trustees of the said Fund, and that the trustees are empowered to make from time to time reasonable
rules in this respect.

It is also understood that the Union will prepare a financial statement on the operations of the
said Fund for each calendar year, and submit this financial statement to the Company.

Upon request by the Company, the Union will supply details on the operation of the said

Fund.

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In witness whereof the parties hereto have executed this Agreement the                                          day of                                         , 2004.

	 	 	 	 	 	 	 
	Signed on behalf of:

	 	 	 	Signed on behalf of	 	 
	 
	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 85 -

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

Local 7226

It is understood and agreed that the employer (Prudential Steel Ltd.) shall maintain a continuous
and ongoing monitoring program at the worksite. The Union shall participate in such monitoring
activities and inspections, including, but not limited to, health and safety evaluations of noise
levels, air pollutants, chemical and physical agents or ventilation problems.

In addition, the Union shall be allowed to conduct whatever additional health and safety
inspections and monitoring the Union deems necessary to safeguard the health and safety of its
members. Inspections conducted by a third party must be mutually agreed upon by the Company and
the Union.

In witness whereof the parties hereto have executed this Agreement this                      day of                     , 2004.

	 	 	 	 	 	 	 
	For the Company

	 	 	 	For the Union	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 

- 86 -

 

APPRENTICE TRAINING AGREEMENT

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

LOCAL 7226

CALGARY

ALBERTA

- 87 -

 

APPRENTICE TRAINING AGREEMENT

INDEX

	 	 	 
	Article	 	 
	1

	 	Preamble
	 
	 	 
	2

	 	Joint Apprenticeship Committee
	 
	 	 
	3

	 	Relation of Trade
	 
	 	 
	4

	 	Qualifications of Applicants for Apprenticeship
	 
	 	 
	5

	 	Contract of Apprenticeship
	 
	 	 
	6

	 	Schedule of Apprentice Training Rates
	 
	 	 
	7

	 	Schedule of Training Processes
	 
	 	 
	8

	 	Instruction of Apprentices
	 
	 	 
	9

	 	Seniority
	 
	 	 
	10

	 	Hours of Work
	 
	 	 
	11

	 	Certificate of Apprenticeship
	 
	 	 
	12

	 	Modification of Standards
	 
	 	 
	13

	 	Duration of Agreement

	 	 	 
	Exhibit	 	 
	“A”

	 	Record of Application
	 
	 	 
	“A-1”

	 	Application for Apprenticeship (Government form not included)
	 
	 	 
	“B”

	 	Contract of Apprenticeship (Government form not included)
	 
	 	 
	“C”

	 	Schedule of Apprenticeship Training Periods and Classifications
	 
	 	 
	“D”

	 	Work Processes and Related Organized Training
	 
	 	 
	“E”

	 	Personal Evaluation for Apprenticeship Selection

- 88 -

 

ARTICLE 1 — 1

	 	 	PREAMBLE
	 
	1.01	 	This Agreement entitled “Apprentice Training Agreement”, dated                                         , 20___, is entered into
between Prudential Steel Ltd., Calgary, Alberta, and/or its successor, (hereinafter)
referred to as (“the Company”) and Local Union 7226, United Steelworkers of America
and/or its successor, (hereinafter) referred to as (“the Union”) and is supplemental
to the Collective Agreement currently in effect between the Company and the Union .
Wherever the masculine pronoun is used in this Agreement, the same shall be construed
as meaning the feminine.
	 
	 	 	Unless specifically amended by the Apprenticeship Training Agreement or by other
Agreement approved jointly by the Company and the Union, the provisions of the
Collective Agreement currently in effect shall apply to Apprentices the same as to
other employees covered by the Collective Agreement.
	 
	1.02	 	This Agreement is established as an aid to the Company and its employees as represented by
the Union.

	 	(a)	 	To give practical expression to the mutual desire of the Company
and the Union to develop trained, qualified Journeymen in the respective trades
through an adequate Apprentice Training Program; and
	 
	 	(b)	 	To provide a detailed record of the basis upon which such
Apprentice Training Program is to be conducted.

ARTICLE 2 -

	 	 	JOINT APPRENTICESHIP COMMITTEE
	 
	2.01	 	A Joint Apprenticeship Committee shall be established consisting of three (3) representatives
of the Company and three (3) representatives of the Union.
	 
	 	 	This Committee shall administer the provisions of this Agreement. Each
representatives shall have one vote. Union representatives on the Joint
Apprenticeship Committee shall be members of Local 7226 in the employ of the Company.
	 
	2.02	 	The Secretary of this Committee shall be a designated Committee representative of the
Company. No minutes of any meeting shall be valid unless co-signed by a designated Committee
representative of the Union. The Chairman of this Committee shall be a representative of the
Company.

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	2.03	 	The Committee shall meet at regular monthly intervals, or more often when requested by either
party. No meeting shall be held with less than two (2) members of each party present.
However, if only two (2) members are present, of either party, they shall have authority to
vote the full three (3) votes of the respective group.
	 
	2.04	 	Each group may request consultants to attend meetings. Such consultants may participate in
discussions, but shall not vote on any matters.
	 
	2.05	 	The duties of the Committee shall be as follows:

	 	(a)	 	To approve Apprenticeship Applications; (Exhibit “A-1”)
	 
	 	(b)	 	To hear and adjust differences which may arise respecting the
provisions of this Agreement;
	 
	 	(c)	 	To ensure that adequate and proper training is given the
Apprentice;
	 
	 	(d)	 	To review testing procedures and results;
	 
	 	(e)	 	To co-operate with the apprentice, the school authorities, the
Company and the Union in the successful operation of the Apprentice Training
Program;
	 
	 	(f)	 	To co-operate with the Provincial Government Apprenticeship
Training Branch;
	 
	 	(g)	 	To improve the standards of apprenticeship by recommending
additions and revisions;
	 
	 	(h)	 	To formulate and carry out plans to create and maintain interest in
the Apprentice Training Program;
	 
	 	(i)	 	To ensure that the program is administered properly and
periodically to review the progress of the apprentices.

	2.06	 	The Company shall establish and install all apprenticeship programs. These programs shall be
reviewed by the Joint Apprenticeship Committee. Should the Joint Apprenticeship Committee be
unable to agree, with regard to the content of any apprenticeship program, as established by
the Company, the matters in dispute, which cannot be resolved by the Joint Apprenticeship
Committee, shall be subject to Article 6 of the Collective Agreement.

- 90 -

 

ARTICLE 3 -

	 	 	RELATION OF TRADE
	 
	3.01	 	Employees may be selected to serve as apprentices for the purpose of developing skilled
Journeymen in the trades of:

	 	(a)	 	Electrician
	 
	 	(b)	 	Heavy Duty Mechanic
	 
	 	(c)	 	Machinist
	 
	 	(d)	 	Millwright
	 
	 	(e)	 	Welder-Maintenance
	 
	 	(f)	 	Welder-Fabrication

	3.02	 	Employees who possess the requisite qualifications and ability shall be eligible for
apprentice training in the respective trades or crafts.
	 
	3.03	 	There shall be a ratio of not more than one apprentice for each trade, and additionally, one
apprentice for each four (4) Journeymen regularly employed in the bargaining unit in
respective trade, except as may be otherwise agreed by the Joint Apprenticeship Committee.
	 
	3.04	 	A reduction in the number of Journeymen may not call for a reduction in the number of
apprentices provided the agreed ratio, in Article 3.03, is not exceeded.

ARTICLE 4 -

	 	 	QUALIFICATIONS OF APPLICANTS FOR APPRENTICESHIP
	 
	4.01	 	Applications for apprentice training shall be made in accordance with the Job Posting
provisions of the Collective Agreement currently in effect.
	 
	4.02	 	Applicants for apprenticeship shall possess the following qualifications:
	 
	 	 	Scholastic

	 	(a)	 	Applicants for apprenticeship training shall have a minimum
education to be agreed upon by the Joint Apprenticeship Committee as each case
arises, but should not be less than a Grade 9 certificate or other qualifications
determined by the Minister of Labour, as equivalent thereto for the following
trades:
	 
	 	 	 	-   Heavy Duty Mechanic
	 
	 	 	 	-   Welder

- 91 -

 

	 	(b)	 	The following trades should have a minimum of a Grade 10
certificate or other qualifications determined by the Minister equivalent
thereto:
	 
	 	 	 	-       Electrician
	 
	 	 	 	-       Machinist
	 
	 	 	 	-       Millwright

	4.03	 	All qualified applicants, before being accepted as apprentices shall:

	 	(a)	 	Fill out Record of Application Form set forth as EXHIBIT “A” of
this Agreement.
	 
	 	(b)	 	fill out Application for Apprenticeship Form set forth as EXHIBIT
“A-1” of this Agreement.

	4.04	 	The Company shall furnish to the Union lists showing apprentices selected and any future
change in their training periods. Such lists shall include:

	 	(a)	 	Name of trade;
	 
	 	(b)	 	Name of apprentice;
	 
	 	(c)	 	Training period to which assigned;
	 
	 	(d)	 	Date of assignment to such training period.

	4.05	 	Selecting Apprentices
	 
	 	 	The information notice for an apprenticeship opening will include the trade the
apprenticeship is for and the dates on which the information notice goes up and comes
down. You may contact the Personnel Department for any additional information.
	 
	 	 	The apprenticeship will be open to all Prudential Steel Employees except tradesmen and
apprentices in another trade. There will be no negative effect to an
employee’s
chance of getting an apprenticeship if more than one trade apprenticeship is applied
for, although it is in the employee’s best interest to go after one trade and
get both work experience and education that relate directly to the apprenticeship that
is being applied for. This is recognized in the Apprenticeship Evaluation Procedure.
	 
	 	 	The information notice will remain on the bulletin boards for a minimum of three (3)
days to ensure everyone on the property has an opportunity to read and respond to it.
	 
	 	 	At this point, the selection process begins. The first step is to see if the
applicant has the minimum requirements:

- 92 -

 

	 	11.	 	The probation period of service with Prudential Steel has been
completed as of the closing date of the notice.
	 
	 	12.	 	The applicant has the minimum education requirements as set by the
apprenticeship board.

	 	 	If these two requirements are met, you can proceed to the next step in the
selection process.
	 
	 	 	Responsibilities In The Apprenticeship Selection
	 
	 	 	It is the responsibility of the employee applying for the apprenticeship to provide
all information and certificates that relate directly to the apprenticeship applied
for by the closing date of the notice.
	 
	 	 	The Apprenticeship Committee will be made up of three (3) Union and three (3) Company
representatives. The Apprenticeship Committee will set out it’s own procedures.
All decisions of the Committee shall be made jointly.
	 
	 	 	The Personnel Department will administer the trades related tests and score them,
calculate the point value for each applicant for length of service, distribute and
collect Employee Performance Appraisals for the applicants, and schedule the
interviews with the Apprenticeship Committee. These interviews will be conducted, and
all will be completed in one day, if possible. The goal is to gather all information
quickly so that the apprenticeship may be awarded as expediently as possible.
	 
	 	 	Apprenticeship Evaluations

	 	13.	 	Trade Assessment Exam
	 
	 	 	 	This test is conducted through the Personnel Department. The test is
designed to examine candidates in areas that are pertinent to the trade.
Each candidate will have two opportunities to write the test. At the present
time, the pass mark is 70%.
	 
	 	 	 	Ten (10) points will be awarded for the test, however, a pass mark must be
achieved for being considered for the apprenticeship.
The ten (10) points will be awarded in relationship to your test score as:
70%-79% = 2 pts; 80%-84% = 4 pts; 85%-89% = 6 pts; 90%-94% = 8 pts; 95%-100% =
10 pts.
	 
	 	14.	 	Present Job Performance
	 
	 	 	 	It is the committee’s plan to initiate a performance evaluation to
be done on each candidate by his/her immediate foreman. The evaluation is on
overall performance at their present job.
	 
	 	15.	 	Seniority

- 93 -

 

	 	 	 	This is for the candidates company seniority since last date of hire up
to the date the notice closes. This accounts for 30% of the overall rating.
One point will be determined by dividing the total service, in months, of the
senior applicant by 30. The corresponding amount will be used to determine
the points scored for each subsequence applicant.
	 
	 	 	 	ie: Senior applicant = 120 months

     Divided by 30 = 4 months = 1 point
	 
	 	 	 	All other applicants= seniority in months, divided by 4, equals their
points.

	 	16.	 	Work History
	 
	 	 	 	This would include all past experience gained both previous to and during
employment at Prudential Steel, that specifically relates to the
apprenticeship that has been applied for. Confirmation of the exact
experience obtained before working at Prudential Steel must be in writing, and
experience obtained at Prudential Steel confirmed verbally.
	 
	 	 	 	Some points to consider when deciding the specific point value for past
experience are:

	 	-	 	how familiar the candidate is to the trade through
the jobs he has worked at (ie: for heavy duty mechanics, an equipment
operator would have some exposure to the job. For millwrights, a person
that has worked in the plant would have some exposure to the job.)
	 
	 	-	 	consider the amount and quality of the experience
along with the time spent in the position to gain experience related to
the trade.
	 
	 	-	 	have they worked in any jobs that have given them
experience with shop practices and safety as it relates to the trade.
	 
	 	-	 	how in depth has the experience been.

	 	 	 	Points are divided into three (3) areas and will be determined by the
Apprenticeship Committee to ensure consistency:

	 	 	 	 	 	 	 
	 

	 	1) shop practices
	 	 	(5	)
	 

	 	2) trade-related experience
	 	 	(10	)
	 

	 	3) other work-related experience
	 	 	(5	)

	 	 	 	This accounts for 20% of the overall rating.
	 
	 	17.	 	Trade Related Education
	 
	 	 	 	In this area, we look at the candidate’s extra skills or education.
Has he/she taken a pre-apprenticeship or any other trade-related courses on
his/her own? First aid courses, although helpful, are of a general nature and
not specifically trade-related thus they will not be considered. Points for
extra effort relating to the trade will be awarded here.
	 
	 	 	 	A pre-apprenticeship that has been taken for the trade applied for
would be worth twenty (20) points. Other courses would be comparatively
judged, using the pre-apprenticeship as a standard.

- 94 -

 

	 	 	 	An exception to this would be courses taken to qualify the applicant for the
apprenticeship (ie: G.E.D. or grade twelve upgrading would not be counted).
Courses taken to improve an applicant’s minimum standing or taken during
high school (ie: auto shop) also will not be counted.
	 
	 	 	 	Points will be determined by the Apprenticeship Committee to ensure
consistency.
	 
	 	 	 	This accounts for 20% of the overall rating.
	 
	 	18.	 	Education
	 
	 	 	 	Completion of Grade 10 is a must for entrance into most of the
Apprenticeship programs in Alberta.
	 
	 	 	 	It is also the desire of Prudential Steel to promote the completion of an
individual’s high school education.
	 
	 	 	 	An individual will be awarded ten (10) points for completion of each grade
above 10 to a maximum of twenty (20) points for completion of the highest
grade completed in his/her province or state.
	 
	 	 	 	G.E.D. or equivalent education will be considered as with the above.
	 
	 	19.	 	Scoring
	 
	 	 	 	Total scoring is out of 100 points. One (1) point = 1%. Calculations
will be rounded to one decimal point.

	 	 	Awarding The Apprenticeship
	 
	 	 	Within five days after the selection process is complete, the name of the successful
candidate will be posted.
	 
	 	 	At this point, the new apprentice will be asked to come to the Personnel Department
and complete the necessary forms of indenture, and to see the general foreman of the
area he/she will be working in to discuss the move into the trade.
	 
	 	 	There may be a waiting period from the time the apprenticeship is awarded to the start
date. This is to minimize the disruption in the operation where a need arises to fill
the position of the successful candidate.

	 	 	 	 	 
	 

	 	NOTE:
	 	The successful candidate will be scheduled to write a Trades Entrance Exam provided by the Apprenticeship Branch, if not already done.

- 95 -

 

ARTICLE
5 —
CONTRACT OF APPRENTICESHIP

	5.01	 	Each apprenticeship application set forth as EXHIBIT “A-1”, complete with documented proof of
education and experience, shall be submitted to the Joint Apprenticeship Committee for
approval by the Committee prior to being forwarded to the appropriate Provincial Government
department. No application shall be so forwarded, which has not been approved by the
committee.
	 
	5.02	 	The applicant whose application has been approved by the Joint Apprenticeship Committee and
his parent or guardian, if he is under 17 years of age, shall enter into an Apprenticeship
Contract with the Company.
	 
	 	 	All standards contained in this Agreement shall be a part of the Apprenticeship
Contract as though specifically written therein. A specimen Apprenticeship Contract
is set forth as EXHIBIT “B” of this Agreement. Such Apprenticeship Contract shall not
be eligible for registration with the appropriate Provincial Government department
until after the apprentice has been in training for a period of ninety (90) calendar
days.
	 
	5.03	 	The following shall receive copies of the Contract of Apprenticeship properly filled out:

	 	(a)	 	The apprentice;
	 
	 	(b)	 	The Company;
	 
	 	(c)	 	The appropriate Provincial Government Department;
	 
	 	(d)	 	The Union.

	5.04	 	The Union shall be notified by the Company whenever an Apprenticeship Contract is cancelled
for any reason, either by the Company or the apprentice.
	 
	 	 	Such notification shall be in writing, and shall state the reason for such
cancellation, and shall be submitted as soon as possible, but not later than ten (10)
calendar days after cancellation.

ARTICLE 6 — SCHEDULE OF APPRENTICE TRAINING RATES

	6.01	 	A schedule of Apprentice Rates for the respective apprentice training periods of actual
training experience with the Company in the trade or craft in each training period is herein
established at various levels of the respective Standard Hourly Wage Scale rates for the
respective trade or craft job. The Schedule of Appropriate Training Periods and
Classifications is set forth in EXHIBIT “C” of this Agreement.

- 96 -

 

	6.02	 	The Schedule of Apprentice Training Rates shall be related to the Standard Hourly Wage Scale
in effect from time to time, and as set forth in the Collective Agreement, and the apprentice
shall be paid accordingly.
	 
	6.03	 	Credits
	 
	 	 	An employee who has acquired experience in a trade by working on a job closely allied
with such trade shall be granted credit for one or more apprenticeship training
periods. Such training period credits shall be recommended by the Joint
Apprenticeship Committee, subject to final determination by the Provincial Government
Apprenticeship Branch.

ARTICLE 7 -

	 	 	SCHEDULE OF TRAINING PROCESSES
	 
	7.01	 	In order to develop qualified Journeymen in the respective trades or crafts, apprentices
shall receive appropriate and adequate training by means of assignments to practical job work
and by other supplemental and related training.
	 
	7.02	 	Schedule of Work Experience
	 
	 	 	The apprentice, during his term of apprenticeship, shall receive such broad experience
and training on the job, as it is necessary to develop a practical and fully trained
Journeyman. This shall include work both in and out of the shop, under qualified
supervision. It is recognized that it may not always be possible to establish a
specific sequence of work experience, but it is also recognized that the final
objective of work assignments to the apprentices is the development of fully trained
Journeyman in the respective trades or crafts.
	 
	 	 	Qualified supervision shall mean that degree and closeness of supervision necessary to
teach good workmanship. Consistent with work schedules, it shall not mean that the
apprentice, at all stages of his training must be accompanied at all times by his
supervisor or a Journeyman, for as apprenticeship advances, so will the apprentice’s
degree of performance and the amount of responsibility, but it shall mean, however,
that no apprentice shall be required to exercise skill or responsibility beyond that
of the level which he from time to time has attained.
	 
	7.03	 	Supplemental and related organized training shall consist of periods of training at the
Provincial Institute of Trades, as required by the appropriate Provincial Government
department.
	 
	 	 	Apprentices shall be required to maintain steady progress in their related organized
training courses, and complete them within the specified time. In the case of failure
on the part of any apprentice to fulfill his assumed obligations as to progress in and
completion of his related organized training course, and after all

- 97 -

 

	 	 	permitted opportunities have been exhausted, his apprenticeship shall be suspended or
cancelled.

	 	 	 	 	 
	7.04

	 	(a)
	 	During periods of supplemental and related organized training, as outlined in Section
7.03, the apprentice shall be paid the normal straight time hourly wages in accordance with
exhibit AC@ schedule of apprenticeship training periods and classifications. The
attendance record will be monitored and wages will be deducted for absenteeism.
	 
	 	 	 	 
	 

	 	(b)
	 	Apprentices who have been placed on lay-off status from the
Maintenance Department, but who are still in the employment of Prudential Steel
Ltd. shall remain eligible for the benefits in Articles 7.03 and 7.04 (a),
however, to qualify for this provision they must have completed the necessary
hours of work and length of apprenticeship service prior to attending the period
of supplemental and related organized training.
	 
	 	 	 	 
	 

	 	 	 	The apprentice shall pay the cost of required text books during his
apprenticeship training.

	7.05	 	Hours of apprenticeship training periods not attended shall be deducted from the regular
straight time earnings in the calculations made in Section 7.04.

	7.06	 	Set forth as EXHIBIT “D” of this Agreement is an example only of how work processes
and other related organized training are developed.

ARTICLE 8 -

	 	 	INSTRUCTION OF APPRENTICES

	 	 	 	 	 
	8.01

	 	(a)
	 	The department supervision shall keep accurate records of the progress of each apprentice
in his department, as to practical and related training, and report to the Joint
Apprenticeship Committee at specified intervals, regarding the progress of the apprentice.
	 
	 	 	 	 
	 

	 	(b)
	 	The apprentice’s immediate supervisor shall ensure that the apprentice
obtains the practical work experience outlined in the Schedule, of Job Training
and related organized training, as established for the respective trade, and is
given instruction in safe work methods in each work operation encountered
throughout the term of the apprenticeship.

	8.02	 	The apprentice shall receive active instruction from Journeyman and/or other qualified
personnel, and shall not be put on a job and expected to learn it alone. Apprentices shall be
given full opportunity by Journeymen to learn all aspects of the trade.

- 98 -

 

	8.03	 	The apprentice shall regularly attend any Company scheduled lecture courses, and do such
reasonable home study work as may be prescribed by the Company from time to time to assist his
training. The Company shall pay the apprentice at his regular hourly wage rate for attendance
during his regular working hours at scheduled lecture courses, subject to Section 7.04.
	 
	8.04	 	The apprentice shall progressively acquire the standard craftsman’s tools normally considered
to be the tradesman’s obligation to supply.

ARTICLE 9 -

	 	 	SENIORITY
	 
	9.01	 	Apprentices shall commence accumulating maintenance department seniority effective on the
date of entry into the department, following ninety (90) day trial period. In the event there
is a reduction in the number of apprentices in a trade, the apprentice in such trade shall be
laid off and/or recalled in accordance with their maintenance department seniority.
	 
	 	 	Upon successful completion of their apprenticeship, the employees maintenance
department seniority shall be his original date of entry into the maintenance
department as an apprentice.
	 
	9.02	 	Subject to the exceptions specified in Section 9.01, apprentices shall be governed by the
seniority provisions of the Collective Agreement currently in effect between the Company and
the Union.

ARTICLE 10 -

	 	 	HOURS OF WORK
	 
	10.01	 	Hours worked by an apprentice in excess of forty (40) hours per week shall be credited on a
straight time basis toward completion of the period of apprenticeship.
	 
	10.02	 	Each apprentice, upon indenture, shall be furnished a record book by the Company. The
Company must faithfully keep this record book up-to-date, and it shall be verified at the end
of each year by the Foreman.

- 99 -

 

ARTICLE 11 -

	 	 	CERTIFICATE OF APPRENTICESHIP
	 
	11.01	 	Upon the successful completion of his term of apprenticeship, the apprentice shall be
classified as a Journeyman in his trade. He shall also receive his certificate of
Apprenticeship, issued by the Provincial Government.

ARTICLE 12 -

	 	 	MODIFICATION OF STANDARDS
	 
	12.01	 	The Joint Apprenticeship Committee shall recommend modifications of standards specified in
this Agreement, subject to approval by the appropriate Provincial Government department, where
necessary, and agreement by the parties to this Agreement.

ARTICLE 13 -

	 	 	DURATION OF AGREEMENT
	 
	13.01	 	This Agreement shall be effective as of the signing date.

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.,

	 	 	 	UNITED STEELWORKERS OF AMERICA	 	 
	CALGARY, ALBERTA.

	 	 	 	LOCAL UNION 7226	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	SIGNING DATE:
	 	 	 	 	 	 

- 100 -

 

EXHIBIT “A”

PRUDENTIAL STEEL LTD.

RECORD OF APPLICATION

FOR APPRENTICESHIP

In the Trade or Craft of                                                                                                                         Name in Full                                                                                                     
Clock No.                                Tel. No.                                          Street Address                                                                                 
City or Town                                                              Date of Birth                                                              Height ___Weight

School Attended:

Public                                                             Grade

High                                                               Grade

Technical
                                                      Grade

Specialized in Related Experience (if any)

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

Use back of form, if necessary
	 	 

- 101 -

 

EXHIBIT “C”

SCHEDULE OF APPRENTICESHIP TRAINING PERIODS AND CLASSIFICATIONS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6 Months	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Training Periods	 	1st	 	 	2nd	 	 	3rd	 	 	4th	 	 	5th	 	 	6th	 	 	7th	 	 	8th	 	 	Journeyman	 
	 
	TRADE TITLES	 	APPRENTICE JOB CLASSES	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Electrician
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	19	 	 	 	21	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Heavy Duty
Mechanic
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	19	 	 	 	21	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Machinist
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	19	 	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Millwright
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	18	 	 	 	19	 	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Welder
Maintenance
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	 	 	 	 	 	 	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Welder
Fabrication
	 	 	8	 	 	 	9	 	 	 	11	 	 	 	13	 	 	 	14	 	 	 	16	 	 	 	 	 	 	 	 	 	 	 	18	 

EXHIBIT “D”

WORK PROCESSES and RELATED ORGANIZED TRAINING

Work processes and related organized training procedures are to be developed and established for
each trade by the Joint Apprenticeship Committee. The Committee shall follow the formula outline
of the Alberta Apprenticeship Board booklet, for each trade, as is practical with the Company’s
facilities. Attached is a sample of a work process outline.

- 102 -

 

EXHIBIT “E”

PERSONAL EVALUATION FOR APPRENTICESHIP SELECTION

			
	 	 	 
	TRADE:
	 	DATE:                                                             

	 	 	 
	NAME OF APPLICANT:
	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	POSSIBLE	 	POINTS	 	 
	CATEGORY	 	 	 	 	 	POINTS	 	SCORED	 	COMMENTS
	 
	Trades related test

	 	 	 	 	 	 	10	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Length of service

	 	 	 	 	 	 	30	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Work History:

	 	 	 	 	 	 	20	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	a) shop practices

	 	 	(5	)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	b) trade related experience

	 	 	(10	)	 	 	 	 	 	a)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	c) other mechanical experience

	 	 	(5	)	 	 	 	 	 	b)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	c)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Trade related education

	 	 	 	 	 	 	20	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Education

	 	 	 	 	 	 	20	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	TOTAL

	 	 	 	 	 	 	100	 	 	 	 	 

ADDITIONAL COMMENTS:

	 	 	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 

 103

 

Apprenticeship Evaluations

	1)	 	Trade Assessment Exam
	 
	 	 	This test is conducted through the Personnel Department. The test is designed to examine
candidates in areas that are pertinent to the trade.
Each candidate will have two opportunities to write the test. At the present time, the pass
mark is 70%.
	 
	 	 	Ten (10) points will be awarded for the test, however, a pass mark must be achieved for
being considered for the apprenticeship.
	 
	 	 	The Ten (10) points will be awarded in relationship to your test score as:
70%-79% = 2 pts; 80%-84% = 4 pts; 85%-89% = 6 pts; 90%-94% = 8 pts; 95%-100% = 10 pts.
	 
	2)	 	Present Job Performance
	 
	 	 	It is the committees plan to initiate a performance evaluation to be done on each candidate
by his/her immediate foreman. The evaluation is on overall performance at their present
job.
	 
	3)	 	Seniority
	 
	 	 	This is for the candidates company seniority since last date of hire up to the date the
notice closes. This accounts for 30% of the overall rating.
	 
	 	 	One point will be determined by dividing the total service, in months, of the senior
applicant by 30. The corresponding amount will be used to determine the points scored for
each subsequence applicant.
	 
	 	 	ie: Senior applicant = 120 months

Divided by 30 = 4 months = 1 point

All other applicants’ seniority in months, divided by 4, equals their points.
	 
	4)	 	Work History
	 
	 	 	This would include all past experience gained both previous to and during employment at
Prudential Steel, that specifically relates to the apprenticeship that has been
applied for. Confirmation of the exact experience obtained before working at Prudential
Steel must be in writing, and experience obtained at Prudential Steel confirmed verbally.

104

 

PERSONAL EVALUATION FOR APPRENTICESHIP SELECTION

	 	 	 	 	 
	TRADE:

	 	DATE:	 	 
	 

	 	 	 	 

	 	 	 
	NAME OF APPLICANT:
	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	POSSIBLE	 	POINTS	 	 
	CATEGORY	 	 	 	 	 	POINTS	 	SCORED	 	COMMENTS
	 
	Trades related test
	 	 	 	 	 	10	 	 	 	 
	Length of service
	 	 	 	 	 	30	 	 	 	 
	Work History:
	 	 	 	 	 	20	 	 	 	 
	a) shop practices
	 	 	(5	)	 	 	 	 	 	 
	b) trade related experience
	 	 	(10	)	 	 	 	a)	 	 
	c) other mechanical experience
	 	 	(5	)	 	 	 	b)	 	 
	 
	 	 	 	 	 	 	 	c)	 	 
	Trade related education
	 	 	 	 	 	20	 	 	 	 
	Education
	 	 	 	 	 	20	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	TOTAL
	 	 	 	 	 	100	 	 	 	 

ADDITIONAL COMMENTS:

	 	 	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 

-105-

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

Local 7226

RE: EMPLOYEE EMPOWERMENT

	1.	 	The Company and the Union are committed to making changes which will both:

	 	(a)	 	Increase the efficiency of operations and;
	 
	 	(b)	 	Result in better jobs and a better work environment from the point of view of
the worker.
	 
	 	The second objective will involve, but is not limited to, providing employees with greater
opportunity to train and expand their skills, more responsibility and influence over
decisions in their jobs, and the elimination of Health and Safety Hazards.

	2.	 	The Company and the Union are committed to a process of an ongoing consultation and joint
decision making on certain issues related to workplace change, as set out below.
	 
	3.	 	The Company and the Union agree that decision making should be pushed down to the lowest
level possible. As many decisions as possible should be made by those directly affected.
	 
	4.	 	Employee empowerment may evolve to include new job progression and rotation systems, and
establishment of work groups or self-regulated work teams.
	 
	5.	 	In order to achieve the objectives outlined above, the parties will immediately establish a
Joint Steering Committee, made up of three (3) members from the Company and three (3) members
from the Union who shall jointly direct the development, implementation and maintenance of an
employee empowerment process.

-106-

 

Local Joint Steering Committees

	 	 	The duties of the Local Joint Steering Committee will include the following:
	 
	 	 	(a)	 	To review the training needs of all employees and develop a comprehensive
training program, which may include participation in CSTEC, which will then be
implemented after it is approved by the Joint Steering Committee. This work will be
done by a Joint Training Committee struck by the Joint Steering Committee for that
purpose. The Training Committee will then present its proposal to the Joint Steering
Committee for approval;
	 
	 	 	(b)	 	Establish, by consensus, guidelines, training and implementation requirements
specific to employee empowerment;
	 
	 	 	(c)	 	Approve, by consensus, all proposals for the development of employee
empowerment which require modification or clarification relative to the Collective
Agreement;
	 
	 	 	(d)	 	Approve, by consensus, payment of lost time wages by the Company for Union
members for meetings of the Local Joint Steering Committee;
	 
	 	 	(e)	 	To authorize the establishment of Joint Sub-Committees, as necessary.

	6.	 	The Company will make the final decision if the following conditions are met:

	 	 	1)	 	No mutually acceptable decision can be reached by the Joint Steering Committee.
	 
	 	 	2)	 	The Company would have the right to make a unilateral decision under the terms
of the Collective Agreement, Absent this letter.

	7.	 	In the event that the Company makes the final decision, the Union retains any rights it would
have had to grieve that decision under the terms of the Collective Agreement, Absent this
letter.
	 
	8.	 	Questions concerning the combination, amalgamation, creation or elimination of jobs arising
from employee empowerment and/or other major proposals will be thoroughly discussed by the
Joint Steering Committee. If no agreement is reached on these questions then the parties will
revert to their rights under the Collective Agreement.

-107-

 

	9.	 	This Letter of Understanding will be in effect for the term of the Collective Agreement,
and from year to year thereafter. However, this Letter of Understanding may be terminated
by either party, by serving written notice on the other party, no sooner than thirty (30)
days, no later than fifteen (15) days, prior to the expiration of each year of the
Collective Bargaining Agreement.

Signed this                      Day of                     , 2004 on behalf of:

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

-108-

 

APPENDIX ‘A’ TO THE LETTER OF UNDERSTANDING

RE: EMPLOYEE EMPOWERMENT

RE: SHIFT LEADERS

It is understood and agreed that the Company may appoint Bargaining Unit members to the position of
Shift Leader. The Shift Leader position shall be meant to be those Group Leader positions that are
operating without direct supervision and are essentially performing the duties and responsibilities
of a non-union salaried foreman. The appointment of bargaining unit members shall be subject to
the following terms and conditions:

20. The appointment of bargaining unit members to the position of Shift Leader shall be done
pursuant to the Letter of Understanding re: Employee Empowerment.

21. Each employee appointed to the position of Shift Leader shall be eligible to receive units of
$0.50 per hour Administrative Additive in addition to the Standard hourly rate that the
employee would normally receive.

22. The Joint Steering Committee of the Employee Empowerment Committee shall determine the number
of Administrative Additive units that each Shift Leader position will receive, and shall be
empowered to make adjustments to these rates, from time to time, as mutually agreed.

23. This is an Appendix to the Letter of Understanding re: Employee Empowerment and as such is
part of the Collective Agreement; however, the number of Shift Leaders at any time,
appointments or administrative additives given under this agreement shall NOT form any
precedent or established practice under the terms of the Collective Agreement. If this
Appendix of the Letter of Understanding is cancelled, then all Shift Leaders will revert to
their former position and wage level pursuant to the Collective Agreement. While this
Appendix is in effect, if there is a conflict between this Appendix and the Collective
Agreement, this Appendix shall prevail.

Signed this                      day of                    , 2004

	 	 	 	 	 	 	 
	Prudential Steel Ltd.

	 	 	 	United Steelworkers of America
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

-109-

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

Local 7226

Re:      Contracting Out The Cleaning Of Mill Pits

It is understood and agreed that the Company may contract out the work involved in the cleaning of
the Mill I, Mill 2 and Mill 3 “Mill and Hydro Pits”.

The Mill Pits and Hydro Pits shall be defined as those water pits, in Mill I, Mill 2 and Mill 3,
that are in excess of 5 feet deep.

This Letter of Understanding may be cancelled by either party, upon serving 30 days written notice
to the other party.

     Signed this                     Day of                    , 2004 on behalf of:

	 	 	 	 	 	 	 
	Prudential Steel Ltd.

	 	 	 	United Steelworkers of America
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

-110-

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

Local 7226

Re:      Funding Of Post Retirement Benefit Plan

Effective January 1, 2004, the Company shall contribute $0.30 per hour worked to a Post Retirement
Benefit Plan. This Plan shall be administered by the Union, and shall be used to provide Health and
Welfare benefits for employees who have retired from Prudential Steel Ltd. The benefit levels and
eligibility requirements shall be at the sole discretion of the Union.

In witness whereof the parties hereto have executed this agreement the                    Day of                                         , 2004

On behalf of

	 	 	 	 	 	 	 
	Prudential Steel Ltd.

	 	 	 	United Steelworkers of America
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

-111-

 

LETTER OF UNDERSTANDING

between

PRUDENTIAL STEEL LTD.

and

UNITED STEELWORKERS OF AMERICA

Local 7226

Re:       Premium Threading Operators and Premium Threading Shift Leaders

As these Premium Threading Operator positions require extensive training in order to operate a CNC
(Computer Numeric Controlled) lathe, it has been agreed between the Company and the Union, that the
terms and conditions listed below, will apply to these positions. This is a temporary agreement
that can be changed through mutual agreement between the Company and the Union.

BID AS A CRAFT JOB WITH MAINTENANCE DEPARTMENT SENIORITY

As there is outside training involved for these positions, we may find that we have work for
Premium Threading during a period of time that these operators would otherwise be on
lay-off. As there would be insufficient time to train other employees, the result would be a
loss of business for the company and a loss of work for employees. Therefore, these
positions will be bid as Craft Jobs within the Maintenance Department and their Maintenance
Department Seniority, which for the purpose of this Letter Of Understanding shall be their
plant seniority, will determine their lay-off and recall rights to this craft job. The
successful applicants will continue to hold their regular Plant Seniority status.

JOB CLASS 14, LINE OF PROGRESSION AND MINIMUM GRADE 10 MATH

The Premium Threading Operator will be a Job Class 14. The pre-requisite will be that the
successful applicant must have held the Job Classification of Threading Machine Operator
or Thread End Inspector. As the Premium Threading Operator must operate a CNC
lathe, and extensively inspect the finished product, experience on these two jobs is a
requirement.

The successful applicants must also have a minimum education of Grade 10 Math to qualify for
entry in a one week course at S.A.I.T., which is part of the training for this job.

-112-

 

TRAINING

The training for this position will include:

	 	24.	 	A one week course at S.A.I.T. for their CNC Machine Tool Operator course.
Successful applicants of the job posting are required to take and pass this course.
	 
	 	25.	 	The manufacture of the threading equipment will instruct on the use of the
actual equipment to be used. This will be done at Prudential.
	 
	 	26.	 	Upon successfully completing the CNC Machine Tool Operator course, S.A.I.T.
will issue Certificates to the graduates. The skills learned in this course should be
transferrable to other employers, in the event of any lay-off from Prudential.

Signed this                     Day of                     , 2004 on behalf of:

	 	 	 	 	 	 	 
	PRUDENTIAL STEEL LTD.

	 	 	 	UNITED STEELWORKERS OF AMERICA
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

113

 

LETTER OF UNDERSTANDING

Between

PRUDENTIAL STEEL LTD.

And

UNITED STEELWORKERS OF AMERICA

LOCAL UNION 7226

RE: OVERTIME AFTER 8 HOURS PER DAY

AND AFTER 40 HOURS PER WEEK

In order to qualify for the overtime rate of pay, as outlined in Article 19.03 Hours Worked on
Saturday and Article 19.04 Hours Worked on Sunday, the following terms and conditions shall apply:

	 	A)	 	The employee must first complete 40 credited hours of work in the current overtime
week. The current overtime week shall be defined as starting with the first scheduled shift
on the Monday and ending with the last scheduled shift on the following Sunday ( ie The
overtime week starts at 10:00 pm Sunday and ends at 10:00 pm the following Sunday ).
	 
	 	B)	 	Credited Hours shall be as follows:

	 	a.	 	Regular hours worked
	 
	 	b.	 	Vacation Hours Taken
	 
	 	c.	 	Statutory Holiday Hours
	 
	 	d.	 	Union Business – on or off property
	 
	 	e.	 	Paid Jury Duty Hours
	 
	 	f.	 	Paid Bereavement Hours
	 
	 	g.	 	Training or School Hours
	 
	 	h.	 	Hours that the employee would have normally worked while in receipt of
Weekly Indemnity or Workers Compensation Benefits
	 
	 	i.	 	Hours lost due to emergency breakdown

	 	C)	 	Overtime hours worked Monday to Friday ( Hours worked over 8 hours per day ) shall not
be considered as credited hours.

114

 

	D)	 	All hours worked up to the 40 credited hours shall be at straight time rate of pay (
excluding hours worked in excess of 8 hours per day which shall be paid at the appropriate
overtime rate of pay ).
	 
	E)	 	All hours worked in excess of the 40 credited hours of work on Saturday or Sunday shall
be paid at the appropriate rate of overtime pay as defined in Article 19.03 and Article
19.04 of this Collective Agreement.
	 
	F)	 	This Letter of Understanding may be cancelled by mutual agreement of the parties at
anytime during the term of this agreement, or, by either party, with 14 days written
notice, at anytime after July 1, 2005.

In witness whereof the parties hereto have executed this agreement the                    
Day of                     , 2004.

	 	 	 	 	 	 	 
	Prudential Steel Ltd.

	 	 	 	United Steelworkers of America
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

115

 

LETTER OF UNDERSTANDING

Between

PRUDENTIAL STEEL LTD.

And

UNITED STEELWORKERS OF AMERICA

LOCAL UNION 7226

Effective January 1, 2004 a Gainsharing Program shall be instituted that shall be paid
Quarterly, according to the following formula:

	 	 	A)	 	The maximum calculation shall be 2% for Yield, 2% for Productivity and 2% for Safety.
	 
	 	 	B)	 	The Quarterly Gainsharing calculation shall be applied to each employees qualifying
gross pay for that quarter.
	 
	 	 	C)	 	Qualifying gross pay shall include regular straight time earnings, Statutory Holiday
pay, Union Business on/off property, Bereavement pay, Jury Duty pay, Training pay and
Vacation earnings accrued in the quarter.
	 
	 	 	D)	 	This Gainsharing Program may be amended , by mutual agreement during the term of this
agreement.

Signed this                     day of                     , 2004 on behalf of:

	 	 	 	 	 	 	 
	Prudential Steel Ltd.

	 	 	 	United Steelworkers of America
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

116exv10w18

 

Exhibit
10.18

RESTRICTED STOCK AGREEMENT

          THIS
AGREEMENT, made as of the ___ day of March, 2006 by and between Gardner Denver, Inc.
(hereinafter called the “Company”), and ___ (hereinafter called the “Employee”);

          WITNESSETH THAT:

          WHEREAS, the Management Development and Compensation Committee of the Board of Directors of
the Company (the “Committee”) desires to benefit the Company by increasing motivation on the part
of the Employee, who is materially important to the Company, by creating an incentive to remain as
an employee of the Company and to work to the very best of the Employee’s abilities; and

          WHEREAS, to further this purpose, the Company desires to make a restricted stock award to the
Employee for ___ shares under the terms of the Company’s Long-Term Incentive Plan
(“Plan”):

          NOW, THEREFORE, in consideration of the premises, and of the mutual agreements hereinafter set
forth, it is covenanted and agreed as follows:

     1. Terms of Award. Pursuant to action of the Committee, which action was taken on
___ (“Date of Award”), the Company awards to
the Employee ___ shares of the
common stock of the Company (“Common Stock”); provided, however, that the shares hereby awarded are
nontransferable (including any sale, transfer, exchange, pledge or other disposition) by the
Employee during the period described below and are subject to the risk of forfeiture described
below. Prior to the time shares become transferable, the shares of Restricted Stock shall bear a
legend indicating their nontransferability, and, except as provided in Section 2, if the Employee’s
employment with the Company is terminated prior to the time a restriction lapses, the Employee
shall forfeit any shares of Restricted Stock which are still subject to the restrictions at the
time of termination of such service.

On the date three (3) years after the Date of Award (___), all of the shares of Restricted
Stock shall become transferable by the Employee if the Employee is still an employee of the Company
on such date, and has been continuously employed by the Company since the Date of Award. All of
the shares of Restricted Stock which have not previously become transferable by the Employee shall
be forfeited by the Employee on the date on which the Employee terminates employment with the
Company. Notwithstanding the foregoing, in the event of a Change of Control (as defined in the
Plan), all previously granted shares of Restricted Stock not yet free of the restrictions of this
Section 1 shall become immediately free of such restrictions.

     2. Death, Disability or Retirement of the Employee. In the event of the death or
disability (as defined in the Plan) of the Employee, or retirement in accordance with any
retirement plan of the Company then in effect, all previously granted shares of Restricted Stock
not yet free of the restrictions of Section 1 shall become immediately free of such restrictions.
In

 

 

the event of death, shares of Restricted Stock that become vested in accordance with this
Section shall be distributed to the Employee’s beneficiary designated by the Employee on such form
and in such manner as may be prescribed by the Company or, if the Employee fails to designate a
beneficiary in accordance with the foregoing, to the Employee’s surviving spouse or, if there is no
surviving spouse, in equal shares to the Employee’s surviving children or, if there are no
surviving children, to the Employee’s estate.

     3. Adjustments Upon Changes in Capitalization or Corporate Acquisitions.
Notwithstanding any other provision in the Agreement, if there is any change in the outstanding
Common Stock by reason of any stock dividend, stock split, reverse stock split, recapitalization,
merger, consolidation, statutory share exchange, sale of all or substantially all assets, split-up
combination or exchange of shares or the like, and in the event of any such change in the
outstanding Common Stock, the number and class of shares of Common Stock under this award of
Restricted Stock not yet vested shall be appropriately adjusted by the Committee, whose
determination shall be conclusive.

     4. No Right to Continued Service. Nothing in this Agreement shall be deemed to create
any limitation or restriction on such rights as the Company otherwise would have to terminate the
employment of the Employee. For purposes of this Agreement, employment by a parent or subsidiary
of or a successor to the Company shall be considered to be employment by the Company.

     5. Administration. This award has been made pursuant to a determination made by the
Committee, and the Committee or any successor or substitute committee authorized by the Board of
Directors or the Board of Directors itself, subject to the express terms of this Agreement, shall
have plenary authority to interpret any provision of this Agreement and to make any determinations
necessary or advisable for the administration of this Agreement and may waive or amend any
provisions hereof in any manner not adversely affecting the rights granted to the Employee by the
express terms hereof. The Committee shall also have authority, subject to the express provisions
of the Plan, to construe the Plan, to establish, amend and rescind rules and regulations relating
to the Plan, and to make all other determinations in the judgment of the Committee necessary or
desirable for the administration of the Plan. The Committee may correct any defect or supply any
omission or reconcile any inconsistency in the Plan or in this Agreement in the manner and to the
extent it shall deem expedient to carry the Plan into effect. All action by the Committee under
the provisions of this paragraph shall be conclusive for all purposes.

     6. Shares. The shares of Restricted Stock described herein shall be granted in the
form of shares registered in the name of the Employee, but subject to the restrictions on
transferability and forfeiture described in Section 1, until said restrictions lapse. The Employee
will be entitled to all dividends and distributions paid on or with respect to the shares of
Restricted Stock, and the Employee will be entitled to instruct the Company how to vote the shares
of
Restricted Stock while subject to the restrictions herein. If the Employee forfeits any rights the
Employee may have under this Agreement, the Employee will, on the day following the event of
forfeiture, no longer have any rights as a shareholder with respect to the forfeited portion of the
shares of Restricted Stock or any interest therein (or with respect to any shares not

2

 

then vested),
and the Employee will no longer be entitled to receive dividends and distributions with respect to
those shares or vote (or instruct the Company how to vote) those shares of Restricted Stock as of
any record date occurring thereafter.

     7. Grant Subject to Plan. This award of Restricted Stock is granted under and is
expressly subject to all the terms and provisions of the Plan, and the terms of the Plan are
incorporated herein by reference. Terms not defined herein shall have the meaning ascribed thereto
in the Plan. THE EMPLOYEE HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN AND AGREES TO BE BOUND
BY ALL THE TERMS AND PROVISIONS THEREOF.

     8. Non-competition. If the Employee, as individual or as a partner, employee,
agent, advisor, consultant or in any other capacity of or to any person, firm, corporation or other
entity, directly or indirectly, carries on any business, or becomes involved in any business
activity, competitive with the Company or any subsidiary, the Committee in its sole discretion, may
require the Employee to forfeit immediately, without consideration from the Company, any portion of
the Restricted Stock which was not vested prior to the event in violation of this Section 8. In
such event, such portion of the Restricted Stock shall immediately become void and of no force and
effect.

     9. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Illinois without reference to its principles of conflict
of laws.

     10. Amendment. This Agreement may be amended by written agreement of the Participant
and the Company, without the consent of any other person.

     11. Entire Agreement. This Agreement sets forth the entire agreement, and supersedes
all other agreements and understandings, whether oral or written, by and between the parties
relating to the subject matter hereof.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf,
and the Employee has, by receipt of this Agreement and acceptance of the benefits hereunder,
accepted the terms hereof, all as of the date first above written.

	 	 	 	 	 
	 	 	Gardner Denver, Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Ross J. Centanni, Chairman, President and CEO
	 
	 	 	 	 
	 	 	Employee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]