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------ COLLECTIVE AGREEMENT between BorgWarner BORGW ARNER CANADA INC. -and- THE INTERNATIONAL ASSOCIATION OF MACIDNISTS AND AEROSPACE WORKERS LOCAL 1547 February 1, 2006- January 31, 2010 Simcoe, Ontario
Transcript
Page 1: BorgWarner - Ontario...~ BorgWarner BORGW ARNER CANADA INC. -and-THE INTERNATIONAL ASSOCIATION OF MACIDNISTS AND AEROSPACE WORKERS LOCAL 1547 February 1, 2006-January 31, 2010 Simcoe,

------ ~---------

COLLECTIVE AGREEMENT

between

~ BorgWarner BORGW ARNER CANADA INC.

-and-

THE INTERNATIONAL ASSOCIATION OF MACIDNISTS AND AEROSPACE WORKERS

LOCAL 1547

February 1, 2006- January 31, 2010 Simcoe, Ontario

Page 2: BorgWarner - Ontario...~ BorgWarner BORGW ARNER CANADA INC. -and-THE INTERNATIONAL ASSOCIATION OF MACIDNISTS AND AEROSPACE WORKERS LOCAL 1547 February 1, 2006-January 31, 2010 Simcoe,

=---

FILE No. 3\) - 012.-1.

CERT. FILE

CERT.DATE

TOTAL EMPS SD

EFF. DATE 01- FEB ·7JY¥,..

EXP. DATE 8\-~ •'Z..QlO ---· CODING CONTROL DATE CODER !----·---

~~~-T~ODED ~,.,-~ ~ ·.,<::,A_

Rf .--, '.:iVED -----··

I I EMPLOYEf!\ UNION

OTHER

APR 1 l LUU8

COLLECTIVE BARGAINING INFORMATION SERVICES

llv'

,I

I

COLLECTIVE AGREEMENT

between

~ BorgW~rner . . .

BORGW ARNER CANADA INC.

,. -, . ')a·..J ". I" .. _,

-and-

THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS

LOCAL 1547

February 1, 2006- January 31, 2010 Simcoe, Ontario

Page 3: BorgWarner - Ontario...~ BorgWarner BORGW ARNER CANADA INC. -and-THE INTERNATIONAL ASSOCIATION OF MACIDNISTS AND AEROSPACE WORKERS LOCAL 1547 February 1, 2006-January 31, 2010 Simcoe,

WITNESSETH:

Where used herein the masculine pronouns shall be deemed to apply to both male and female unless the contract clearly specifies otherwise.

ARTICLE 1

ARTICLE II

ARTICLE III

ARTICLE IV

ARTICLE V

ARTICLE VI

ARTICLE VII

ARTICLE VIII

ARTICLE IX

ARTICLE X

ARTICLE XI

ARTICLE XII

ARTICLE XIII

ARTICLE XIV

ARTICLE XV

ARTICLE XVI

ARTICLE XVII

ARTICLE XVIII

ARTICLE XIX

SCHEDULE "A"

SCHEDULE "B"

SCHEDULE "C"

TABLE OF CONTENTS

RECOGNIT!ON EXCLUSIONS ....................................... .

RESERVATIONS TO MANAGEMENT ............................. .

REPRESENTATION......... . .......................................... .

SENIORITY ............................................................... .

GRlEV ANCE PROCEDURE ........................................... .

ARBRlTRATION ........................................................ .

BULLETIN BOARD .................................................... .

STRlKES AND LOCK-OUTS ......................................... .

LEAVE OF ABSENCE .................................................. .

INSURANCE ............................................................. .

PAID HOLIDAYS ................................ .

VACATIONS ....................................... .

BEREAVEMENTPAY .................................................. .

WAGES AND HOURS .................................................. .

GENERAL ................................................................. .

POSTING AND TRANSFERS ......................................... .

NON-DISCRlMINA TION AND HUMAN RJGHTS ............... .

COST OF LIVING ....................................................... .

TERMINATION .......................................................... .

HOURS OF WORK ...................................................... .

WAGES .................................................................... .

1 0-HOUR AFTERNOON SHIFT ...................................... .

2

3

6

8

9

10

10

11

16

17

I9

19

I9

21

25

25

26

28

32

33

APPRENTICESHIP PROGRAM . .. . . . .. . .. . .. . . . . . ... . . . . . . . . .. . . .. . .. . . . ... ... . . . . .. . .. . . .. .. . ..... 35

EXIBITA

EXHJBITB

INDEX

MONEY PURCHASE PENSION PLAN ............................ .

LEITER OF AGREEMENT: Skill & Ability Job Selection ...... .

41

42

44

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ARTICLE 1 RECOGNITION EXCLUSIONS

1 :01 This agreement is entered into pursuant to certificate of the Ontario Labour Relations Board dated the 1" day of June, 1960.

1:02 The Company recognizes the Union as the exclusive bargaining agent for all employees of the Company at Simcoe, Ontario, save and except for supervisors, persons above the rank of supervisor, office and sales staff, head shipper, chief storekeeper, expediter, engineering department, sales and executive trainees and guards.

ARTICLE II RESERVATIONS TO MANAGEMENT

2:01 The Union acknowledges that it is exclusively the function of the Company to:

(a) maintain order, discipline and efficiency;

(b) hire, discharge, classify, direct, transfer, promote, demote, layoff and suspend or otherwise discipline employees, subject to the right to lodge a grievance as herein provided;

(c) make and alter from time to time rules and regulations to be observed by the employees, provided that they are not inconsistent with the provisions of this agreement. Notice will be given to the Union Committee two days prior to any significant changes;

(d) generally to manage the industrial enterprise in which the Company is engaged and without restricting the generality of the foregoing, to determine the products to be manufactured, methods of manufacture, schedules of production, kinds and locations of machines and tools to be used, process of manufacturing, the engineering and designing of its products, the control of materials and parts to be incorporated ip. the products produced and the extension, limitation, cmtailment or cessation of operations at the plant.

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ARTICLE Ill- REPRESENTATION

3:01 a) The Union shall appoint or elect and the Company shall recognize three (3) committee persons to represent all employees of the bargaining unit. This committee shall be recognized as the Union Committee.

b) The Union may elect a Negotiating Committee to be composed of not more than three (3) members for the purpose of negotiating the Collective Agreement. The Company shall recognize such a committee up to the ratification of the Collective Agreement. 1bis committee shall be recognized as the Negotiating Committee.

3:02 The Union shall notifY the Company in writing fi·om time to time of the names of the committee persons and their alternates, the respective effective dates of their appointment and names, if any, of those former committee persons who they are replacing.

The Company will deal only with the committee persons as specified in the above paragraph.

3:03 It is understood and agreed that the Committee persons as well as other employees have regular duties to perform. Committee persons, with the prior approval of the Supervisor of the department where they are respectively employed, shall be permitted during their working hours to leave their regular duties for a reasonable length of time to investigate and present grievances in their respective jurisdictions and/or deal with matters pertaining to the administration of this Co1lective Agreement. The Supervisor's approval shall not be unreasonably withheld.

3:04 It is agreed that when negotiations for the renewal of the collective agreement takes place, during the committee person ~s working hours, the members of the Union negotiating committee would not suffer loss of pay. This stipulation will be limited to scheduled Union and Company contract negotiations prior to conciliation services.

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ARTICLE IV SENIORITY

4:01

4:02

4:03

4:04

4:05

Fundamentally rules respecting seniority are designed to give employees an equitable measure of security based on length of continuous- se.rvi_ce with the Company. Probationary employees shall not have any semonty under this agreement.

Upon completion of sixty (60) days worked within an~ period of six (6) consecutive months, where the employee has not been dtscharged:

(a) The employee shall have their name added to the seniority list showing their classification and their seniority date.

(b) Employees shall be considered probationary employees until they have been added to the seniority list.

Employees' names shall appear on the seniority lists in the order of their respective dates of hiring. As of February l, 2002, when more than one employee has been hired on the same day their names shall appear on the list in the order of their Social Insurance Number - the lowest number being placed above the highest number. The date of hiring of any employee placed on the seniority lists after sixty (60) days worked, iotennittent employment within any period of six (6) consecutive months where the employee has not been discharged, or where this probationary period has not been mutually extended, shall be consid?red to be the date sixty (60) days worked prior to the date upon which he/she attams

seniority.

LAY-OFFS AND RECALLS

Seniority shall apply to lay-offs and recalls.

a) In the event of a "temporary layoff', except when due to irregularity in production or natural disaster or as legislated by the Canadian Govemment,

l) Employees with less than three (3) years of service will be given one ( 1) work day notice

2) Employees with three (3) or more years of service will be given Two (2) weeks of notice.

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b )"Temporary layoff' is defmed by the Employment Standards Act of Ontario.

4:06 In the event of a layoff which appears to the Company unlikely to be of no longer duration than five (5) working days, within one calendar week (Sunday to Saturday inclusive)~ reduction in the working force will proceed by seniority but only with employees within the affected classification. Employees so laid off shall not have the right to bump into another classification unless the employee is qualified (through past experience in the classification) to move into another classification and perform the work without further training.

4:07 If, within the said five (5) working days, it becomes apparent to the Company that the layoff is to exceed that period then, as soon as the same becomes apparent and in any event at the expiration of the said five (5) working days, the layoff shall take place in the following order:

a) Probationary employees shall receive their lay-off notice first; b) Employees with seniority shall be laid off in order of reverse

seniority in the job classifications affected. Such employee shall exercise his plant-wide seniority to bump a less senior employee in any classification provided they meet the normally accepted standards of production requirements within four (4) weeks or less of training.

Employees will be allowed one bump per lay-off.

4:08 The Union Committee as specified in Article 3.01 shall have super seniority on the following basis:

(a) If there is a layoff in a committee member's classification and his /her personal seniority is not enough to keep him/her in his/her classification, (s)he shall be allowed to bump into any classification occupied by a less senior employee, in which (s)he is capable of performiog the work required or would be capable with the training period specified io Article 4.08, or

(b) With the exception of a layoff where all employees are laid off or a layoff where all employees except the plant maintenance personnel

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l

are laid off, if the committee members cannot find employment through the tetms of(a) above then the Company shall maintain them in employment in a capacity of the Company's choosing at the appropriate rate for the classification as specified in Schedule "B" of this agreement.

(c) !fa committee member does not find employment through section (a) or (b) above and there are bargaining unit members still working within the plant, the committee person with the most plant wide seniority will be maintained in employment in a capacity of the Company's choosing at the appropriate rate for the classification as specified in Schedule "B" of this agreement.

4:09 (a) In the event of a recall, which appears to the Company unlikely to be of no longer duration than ten (I 0) working days, recall will proceed by seniority but only with the employees within the affected classification. Employees so recalled must be qualified (through past experience in the classification) to perform the work without further training.

(b) If, within the said ten ( 10) working days, it becomes apparent to the Company that the recall is to exceed that period then, as soon as the same becomes apparent and in any event at the expiration of the said ten (I 0) days, the recall shall lake place as follows:

If an opening becomes available in a classification for which an employee has been laid off, he shall be recalled to that classification in order of seniority. Any openings that can not be fi11ed by recall to a classification will then be filled through the job posting procedure.

4:10 Seniority rights shall cease for any one of the following reasons:

(a) If the employee quits his/her employment.

(b) If the employee is discharged and the discharge is not reversed through the grievance and/or arbitration procedure.

(c) If the employee is absent for three (3) working days without advising the Company, giving satisfactory reasons; however, the Company may extend beyond the three days for extenuating reasons.

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(d) If an employee on layoff status fails to notify the Company of their intent to retum to work within three (3) working days, and fails to return to work within seven (7) days, after the attempted delivery of written notice, by registered mail (return receipt to be used for confirmation), to his/her last address on record with the Company unless (s)he furnishes satisfactory reasons for such failure.

(e) If an employee is on layoff for a period of time equal to his/her seniority or twenty-four (24) months, whichever is less.

4: II The Company shall post, and supply to the Union Committee, seniority lists every three (3) months showing job classification and rates of pay. This list shall be kept current as changes occur.

4:12 Any employee who is promoted or transferred from a job within the Bargaining Unit to a position outside the Bargaining Unit, shall retain his/her seniority as of the date of transfer for a period of twelve (12) months, unless extended by mutual consent of the Union and Company.

No additional seniority will be accumulated while outside of the Bargaining Unit. h1 the event the employee is transferred back by the Company, (s)he shall be returned to the appropriate place on the seniority list.

Employees who were transferred out of the Bargaining Unit prior to January 31, 2002, may be transferred back to the Bargaining Unit with seniority per prior contracts.

4:13 In the event of an employee suffering a major disability, where there is mutual agreement, exception may be made to the seniority provisions of this agreement in favour of such employee.

ARTICLE V GRIEVANCE PROCEDURE

5:01 An employee and steward shall first discuss an employee's grievance with the supervisor of his/her department who shall render his/her decision immediately, if possible, but in no case longer than three (3) working days. A probationary employee shall not have the right to file a grievance arising out of his/her discharge.

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l I

5:02

5:03

a)

b)

c)

If the decision of the supervisor is not satisfactory to the employee concemed,(s)he may submit the same to the supervisor of his/her department in writing, either direct or through the relevant committee person. It can be relayed by the grievor or a committee person.

No grievance shall be considered if more than ten (I 0) working days have elapsed since the occunence of the event on which the grievance is based, or should have become known to the grlevor or Union, with the exercise of reasonable intention.

The supervisor shall deal with the grievance and render his/her decision in writing not later than the third working day following the receipt of the grievance.

d) No claims will be valid prior to date of the grievance except where the employee has no knowledge that (s)he has a grievance, and retroactive not to exceed two (2) weeks.

a) If the decision of the supervisor is not satisfactory to the employee concerned, the employee may appeal the written and signed grievance to the Management Committee through the relevant committee person, within three (3) working days ofthe supervisor's decision.

b) Thereupon there shall be a meeting with the Management and Union Committee to discuss the grievance. This meeting shall take place within seven (7) working days after the appeal by the employee or at any other time that is mutually agreed upon by the parties.

c) The Company's decision shall be given seven (7) working days after the meeting. An International representative of the Union may be present at the meeting.

5:04 The procedure in this section equally shall apply to a grievance lodged by a group of employees.

5:05 The members of the Management Committee will be the Plant Manager and any such other persons as may be selected by the Plant Manager from time to time. Any changes will be communicated to the Union immediately.

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5:06

5:07

5:08

Where the supervisor is absent, any grievanpe will be submitted to the designated Shift Supervisor.

An employee who is discharged shall be given the opportunity to interview his/her committee person privately for not more than thirty (30) minutes at a time and place designated by his/her Supervisor before the employee leaves the Company's premises

Any claim by an employee, with seniority, that (s)he has been discharged without cause, shall be treated as a grievance, and such grievance shall be dealt with as outlined in Article 5:03, if lodged within three (3) working days of such discharge.

Such grievances shall be settled under the grievance procedure by:

1. Continuing the management's action in dismissing the employee.

2. Re-instating the employee with full, part or no compensation for lost time (less any wages earned during this period) or

3. Any other arrangement which may be deemed just and equitable.

5:09 The time limits specified in this Article may be extended by mutual agreement of the parties hereto.

ARTICLE VI-ARBITRATION

6:01 Where a difference arises between the parties relating to the interpretation, application or administration of this agreement, including any questions as to whether a matter is arbitrable, or where the allegation is made that this agreement has been violated, either of the parties may, after exhausting any grievance procedure established by this agreement, and within five (5) working days after the decision of the Management Committee, notify the other party in writing of his/her desire to submit the difference or

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Page 8: BorgWarner - Ontario...~ BorgWarner BORGW ARNER CANADA INC. -and-THE INTERNATIONAL ASSOCIATION OF MACIDNISTS AND AEROSPACE WORKERS LOCAL 1547 February 1, 2006-January 31, 2010 Simcoe,

l allegation to arbitration and the notice shall contain the name of the first party's appointee to an Arbitration Board. The recipient of the notice shall within five (5) working days advise the other patty of the name of its appointee to the Arbitration Board. The two appointees so selected shall, within five (5) working days of the appointment of the second of them appoint a third person who shall be the chairperson. If the recipient of the notice fails to appoint an arbitrator, or if the two appointees fail to agree upon a chairperson, within the time limited, the appointment shall be made by the Minister of Labour for Ontario upon the request of either party. The Arbitration Board shall hear and determine the difference or allegation and shall issue a decision and the decision shall be final and binding upon the parties and upon any employee affected by it. The decision of a majority shall be the decision of the Arbitration Board, but if there is no majority, the decision of the chairperson shall govern. The time limits provided by this paragraph may be extended by mutual consent of the parties hereto.

6:02 The Arbitration Board shall not have jurisdiction or alter or change any of the provisions of this agreement or substitute any new provisions in lieu thereof, nor give any decision inconsistent with the terms and provisions of this agreement. However, the arbitrator shall have the right to amend any penalty, if in the opinion of the arbitrator the penalty is unreasonable and

unjust.

6:03 No person may be appointed as an arbitrator who has been involved in an attempt to negotiate or settle the grievance. Each of the parties hereto will bear the expenses of an arbitrator appointed by it and the parties will jointly bear the expenses of the chairperson of the arbitration board, if any. The proceedings of the arbitration board will be expedited by the parties

hereto.

ARTICLE VII BULLETIN BOARD

7:01 The Union shall have a bulletin board for its own use in the plant to be erected, located and designated for the purpose by the Company. Provided and it is agreed that the use by the Union of such bulletin board shall be restricted to the posting thereon of only such notices as have received the approval of the Plant Manager, or, in his/her absence, the next senior supervisor, in writing prior to the posting thereof, and the subject matter of all such notices shaH be restricted to notices pertaining to recreational,

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educational or social activities of the Union, notices of meetings or notices of the results of Union elections.

ARTICLE VIII STRIKES AND LOCK-OUTS

8:01 The Union agrees that there will be no strike and the Company agrees that there will be no lock-out during the term of this collective agreement. It is under~too~ that the ~e.rms "strike" and "lock-out" have the meaning contamed m the defimtton of such terms in the Ontario Labour Relations

Act.

ARTICLE IX LEAVE OF ABSENCE

9:01 (a) An employee requesting a leave of absence shall submit his/her request, specifying the reasons for the request, in writing to his/her supervisor with as much advanced notice as is reasonably possible.

(b) The supervisor shall give his/her written response back to the employee within two (2) weeks of the written request. If the request is denied the supervisor shall specifY the reasons tbr the refusal.

(c) If a leave of absence is for thirty (30) days or less the employee's benefits shall be continued until the end of the month in which the leave is started.

(d) In cases of leave of absence, seniority shall be accumulated for the time granted.

(e) Employees who are absent due to illness or injury are not required to apply for a leave of absence, however, employees who are absent for more than thirty (30) days may be requested to provide a medical certificate showing that they are medically fit to retum to work.

9:02 (a) Employees who are designated to attend Union conferences conventions, or training seminars shall be granted a leave ~f absence with seniority. If possible, notice of the leave of absence must be given to the employer two (2) weeks prior to the leave. This leave of abse~ce may be extended to a maximum of three (3) employees at any one time.

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----------------------------------------~---~-------------------~-~

(b)A leave of absence with seniority shall be granted to one (!) employee designated to perform urgent and necessary business for the local union provided that his/her Supetvisor is infmmed of this as far in advance as is reasonably possible.

One additional employee may be granted a leave of absence to perform urgent and necessary business for the Wlion provided that his/her Supervisor is informed of this as far in advance as is reasonably possible. The Supervisor's approval shall not be unreasonably withheld.

(c) The Company will continue to provide the benefits indicated in Article 10:01 to employees granted Leave of Absence under (a) and (b) above.

9:03 Requests by eligible employees for an unpaid leave of absence for pregnancy or parental leave will be considered and approved subject to the terms and conditions of the Employment Standards Act of Ontario.

ARTICLE X INSURANCE (Group Benefit Plan)

10:01 The Company will pay one hundred percent (100%) of the monthly insurance premiums for the duration of the contract subject to the provisions of the respective policies and the contracts and the rules, regulations and instructions from time to time issued pursuant thereto:

(a) Life Insurance: $25,000.

(b) Accidental Death and Dismemberment: $25,000.

(c) Short-Term Disability Insurance:

Effective February OJ, 2005, the benefit level will be 66.6% of an employee's normal weekly insurable earnings, provided that the employee's portion of the Employment Insurance (EI) reduction be signed over to the Company Maximum benefit period to be twenty-six (26) weeks with the following waiting periods:

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lllness: Four (4) days; payment to begin on the fifth day. Accident: No waiting period. Hospitalization: No waiting period.

(d) Hospital/Medical Insurance:

Supplemental Plan providing for Semi-private hospital care.

Physiotherapy coverage at $50.00 per visit, no maximum

Effective February I, 2007: Orthopaedic Shoes & Insoles coverage at $300.00 per two (2) years

- Effective February 1, 2009: Chiropractic coverage at $20.00 per visit

(e) Drug Plan:

$20.00 single $40.00 family deductible; Employee not charged $40.00 until second eligible family member uses plan.

(f) Dental Plan:

The basic benefits provide payment towards the cost of all reasonable charges to employees and their insured dependents for necessary eligible dental services performed by a dentist or licensed dental technician up to the amounts shown in the fee schedule for the province of residence. Dental tariff changes usually take place at the first of the calendar year. Since benefit payments increase when the dental tariff increases, the contract includes a provision to allow for an automatic increase to the rates.

I. Eligible Expenses- No deductible, no co-insurance

(A) Basic Coverage -Type I

Routine Examinations as often as every six (6) consecutive months X-rays Cleaning and Scaling

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II

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Fluoride Treatments Space maintainers and regainers for missing primary teeth

II. Items subject to deductible and co-insurance

(B) Basic Coverage - Type II

Fillings other than inlays and crowns Extractions Oral Surgery Periodontal care, excluding periodontal prosthesis Endodontics, e.g. root canal therapy Rebasing and relining of dentures

Deductibles - Single $25.00 per person per year -Family $25.00 per person per year for two (2)

people. The remaining members are exempted from the $25.00 deductible clause.

Co-Insurance - 80% paid by Insurance Company; 20% paid by the employee after the basic deductible clause has been fulfilled.

(C) PROSTHODONTIC COVERAGE (DENTURES)

Deductibles - $50.00 per person to a maximum of $200.00 per family.

Co-Insurance - 50% paid by the Company; 50% by Employee, after the deductible.

MAXIMUM CHARGES PER YEAR OF $1,000.00 PER PERSON AND $3,000.00 PERF AMIL Y.

(D) ORTHODONTIC COVERAGE (BRACES)

Deductible - $50.00 per person to a maximum of $200.00 per family.

Co-Insurance - 50% paid by the Company; 50% by Employee, after the deductible.

LIFETIME MAXIMUM OF $2,000.00 PER PERSON AND $6,000.00 PER FAMILY.

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(g) Vision Care:

Vision care services and supplies, when prescribed by an ophthalmologist or optometrist are eligible to a maximum coverage of $200.00 per each employee and dependent every two (2) years.

Eligible services and supplies includes:

Eyeglass lenses or contact lenses when prescribed by an ophthalmologist or optometrist for the correction of impaired vision. Frames for eyeglass lenses. Laser eye surgefy when prescribed by a licensed ophthalmologist.

In addition, eye exam coverage per employee and dependents once every two (2) years.

This summary of Group Insurance is for initial information only and does not cover the plan in its entirety.

REFER TO THE GROUP BENEFIT PLAN BOOKLET FOR COMPLETE PLAN DETAILS.

(h) Long-Term Disability:

The Company will provide a long-term disability (LID) plan which provides a monthly source of income in the event that an employee is unable to work due to total and permanent disability.

The plan will be offset by any other disability income sources such as Canada Pension Disability Pension or Worker's Compensation.

There will be a waiting period of fifteen (15) weeks after the expiration of the twenty-six (26) week short-term disability plan. During this period the employee is entitled to draw up to fifteen (IS) weeks of sickness benefits through Employment Insurance (EI).

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1--------------------,------~-~--~-------~c<J

1:

Monthly LTD Payment:

60% of base monthly wage - up to a maximum of $3600.00 per month.

Maximum Coverage:

The maximum number of months that an employee can receive this benefit is equal to tl1e number of full months of seniority he/she has with the company at the time he/she become totally disabled. This maximum applies to a11 periods of total disability, even if they are due to different and unrelated causes.

Tennination of Benefits

(a) When the employee is no longer totally disabled.

(b) When the employee reaches age 65, if the disability begins before his/her 60'" birthday.

(c) When the employee has received the maximum number of monthly benefits.

Whichever is earliest.

This summary is for initial information only and does not cover the plan in its entirety.

REFER TO THE BOOKLET ON LONG-TERM DISABILITY FOR COMPLETE PLAN DETAILS.

10:02 The Company will pay the cost of benefits for employees who have been injured at work and meet the relevant eligibility criteria as set out in the Workplace Safety and Insurance Act 1997, for one year following the date of injury.

The Company will pay the cost of insurance premiums and benefits for those employees who are absent from work as a result of illness or injury for the twenty-six (26) weeks.

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I 0:03 Employees who are no longer actively employed by the Company shall not be covered for benefits, except those employees who are laid off shall be covered until the end of the calendar month following the month in which they are laid off.

ARTICLE XI- PAID HOLIDAYS

11:01 The Company will provide thirteen (13) paid holidays as follows:

New Year's' Day Victoria Day Civic Holiday Thanksgiving Day Boxing Day

Good Friday Canada Day Labour Day Chrisbnas Day

One (I) day prior to Christmas Day. One (I) day prior to New Year's Day. Two (2) additional floating holidays designated by the Company prior to the contract year.

11:02 The amount of pay shall be eight(8) multiplied by the employee's regular straight time hourly rate (excluding off-shift and overtime premiums). In order to quality for holiday pay, an employee must comply with the following requirements:

(a) The employee must work the last scheduled shift preceding the holiday and the first scheduled shift after the day of observance of the holiday unless (s)he has been granted leave of absence by the Supervisor or unless (s)he is absent due to illness or accident which is certified by a Physician.

(b) An employee who has agreed to and does work on the day of observance of the holiday shall be paid one and a half times his/her regular rate for all time worked on such day in addition to any holiday pay to which he/she may be entitled hereinunder.

(c) An employee who has agreed to work and fails to work on any such holiday shall not be entitled to any pay therefore unless (s)he gives reasons satisfactory to the Company for his/her failure to work.

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11:03

(d) Should any of these holidays fall on a Saturday or Sunday, a day in lieu will be observed as a paid holiday except where otherwise legislated by the governing body in the Canadian Government.

(e) If Canada Day falls on a Saturday it shall be observed on the Friday, and if it falls on a Sunday it shall be observed on the Monday. If Canada Day falls on any other day of the week, the Union and the Company shall agree on the day such holiday is to be observed based on the decision of a majority of hourly employees.

If one of such holidays occurs while an employee is on vacation, (s)he shall be paid his/her holiday pay and will be allowed to schedule the holiday at another time which is mutually agreed to by the Company and employee.

ARTICLE XII-VACATIONS

I2:01 Each employee who is on the active payroll of the Company and has completed twelve (12) months employment with the Company shall be entitled to a vacation of two weeks (equivalent to 80 hours) with pay equal to 4% of the total earnings (s)he shall have received during the twelve months ending on his/her employment date. Vacation pay is payable after June 301

h in each year.

12:02 Each employee who on the 301h day of June in each year is on the active

payroll of the Company and has the following seniority with the Company, shall be entitled to a vacation of the corresponding days and percentages of the total earnings (s)he shall have received during the twelve months ending on the 30th day of June.

12:03

I to 4 years-5 to I 0 years­! I to 20 years-21 years plus-

two (2) weeks (equivalent 80 hours) at 4% three (3) weeks (equivalent I20 hours) at 6% four (4) weeks (equivalent 160 hours) at 8% five (5)weeks (equivalent 200 hours) at 10%

Vacation pay shall be based on the various percentages of total earnings. Total earnings for the purposes of vacation shall be all taxable earnings paid by the Company in the twelve (12) months ending June 30'".

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I2:04 (a) All vacations are to be taken. Employees ;hall have the option of receiving all their vacation pay at the time of the scheduled plant shutdown or receive their remaining vacation pay at the time their remaining vacations are scheduled. The employee shall have until March 31st of each vacation year to schedule their outstanding vacation weeks. Should the employee fail to schedule their vacation time by March 31st of the vacation year, such vacation shall be scheduled by the Company.

I2:05

(b)

Employees under extenuating circumstances such as long layoff or extended illness, in excess of six months, will not have to take vacations over and above the plant shutdown.

Vacations scheduled other than full weeks will be charged according to the hours taken.

In situations whereby the employee's remaining vacation time is less than a full shift, the remaining vacation time will be taken as follows:

i)

ii)

iii)

Where the remaining time is less than one-half of the employee's scheduled shift, the employee will be required to work a shortened shift. Where the remaining time is equal to one-half of the employee's scheduled shift, then the employee will be required to take a half day vacation. Where the remaining time is greater than one-half of the employee's scheduled shift, then the Company will grant a leave of absence for the balance of the shift.

Note: Leave of absence may be requested for part days remaining.

Employees who are separated from their employment with the Company shall be paid their vacation on a pro-rated basis.

The Company shall post the plant shutdown vacation schedule by May I" of each year.

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I

12:06 Employees who worked during vacation shutdown and employees who are entitled to more than two weeks vacation, shall be allowed to select their vacation periods within the succeeding vacation year of July l 5

t to June 30"'. The Company shall dete1mine how many employees shall be on vacation at any one time. Seniority shall determine who shall have preference.

ARTICLE XIU- BEREAVEMENT PAY

13:01 The Company will grant, upon application made by a seniority employee, four ( 4) days leave of absence without loss of pay to him/her to attend the funeral of a member of his/her immediate family. The amount of pay for each day shall be eight (8) hours multiplied by the employee's straight time hourly rate (excluding off-shift and overtime premiums). The recognized four day leave shall be within the week the funeral is held. "Immediate Family" shall mean the spouse, child, brother, sister, mother, father, mother-in-law, father-in-law, brother-in-law, sister-in-law, grandparents and grandchildren of the employee.

ARTICLE XIV- WAGES AND HOURS

14:01 Attached hereto and forming a part of this agreement is Schedule "A" covering hours of work, overtime, shift premium and reporting-in allowance.

14:02 Attached hereto and forming a part of tiiis agreement is Schedule "B" covering Job Classifications and Wage Rates.

14:03 Attached hereto and fmming a part of this agreement is Schedule "C" covering the I 0-hour afternoon shift.

14:04 No pyramiding of premium pay is allowed.

ARTICLE XV- GENERAL

15:01 The Company shall be entitled to rely upon the last address and telephone number of any employee shown on its records. Employees shall immediately notify Human Resources of any change of address or telephone number in writing.

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15:02 Supervisors shall not perform work on any hourly rated job except in the following types of situations: .

1. In emergencies, dangerous situations, or as directed by government mandate.

2. In the instruction or training of employees. 3. When production difficulties are encountered on the job. 4. In the development or testing of processes, equipment, or programs. 5. When assisting with a launch or changeover. 6. If all people qualified for that job are unavailable or have declined the

opportunity.

It is not the intent of the Company to displace Bargaining Unit Employees of either regular or overtime hours.

15:03 It is agreed that the Rand Formula will be applied as follows:

Employees shall be required as a condition of employment to authorize the Company, on a form provided, to deduct from each regular pay an amount equal to the weekly dues of the Union. Such deductions shall be remitted to the Treasurer of the Local Lodge 1547, together with a list of employees from whom such deductions were made, on or before the 251

h of the month in which the deductions are made. The Company agrees to provide the Union at the end of each calendar month a list of hire and severance for that month.

15:04 The Company will provide one (1) pair of safety shoes per year per employee. The amount payable per each year of the contract will be $110.00 per pair.

Effective February I, 2007- $120.00 per pair

The Company will purchase one (I) pair of safety shoes for each new employee. If the new employee leaves the Company for any reason prior to completion of six (6) months of service, the cost of the safety shoes will be deducted from the final paycheque. Employees on layoff, leave of absence, medical leave or workers' compensation do not qualifY for reimbursement until they return to active duty. Employees will be required as a condition of employment to wear all safety equipment deemed necessary by the Company.

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Those employees in the permanent job classifications of "TUMBLER & WASH OPERATORS, MAINTENANCE STAFF, and PRESS OPERATORS" will be entitled to two (2) pairs of safety shoes, considered suitable for the working environment up to a maximum of $240.00 per each year of the contract.

15:05 The Company will purchase one pair of prescription safety glasses for those employees requiring corrective lenses. The cost is not to exceed $200.00 per each eighteen (18) month period. If a new employee leaves the company for any reason prior to completion of six (6) months of service, the cost of the glasses will be deducted from the final paycheque.

15:06 Tool Allowance for permanent Maintenance & Millwright classification will be as follows:

$135 per year effective February 01, 2005 $150.00 per year effective February 01, 2008

The Company will maintain a tool crib for special tools with three (3) shift access.

15:07 When new equipment is installed, employees in the classification which will be required to operate and perform daily minor maintenance on the equipment, will be given appropriate instruction and training. Employees in the maintenance trades who will be required to keep the equipment operational wi11 be trained in equipment trouble-shooting, repair, and preventative maintenance procedures as necessary to keep equipment operational.

ARTICLE XVI POSTINGS AND TRANSFERS

16:01 (a) Vacancies and/or new jobs will be posted for three (3) working days and shall contain the number of jobs available, qualifications, pay scale, and shifts required if known, along with estimated placement date. During this period, only employees with six (6) months of seniority, unless mutually agreed upon by the Company and the Union, may make application for the posted vacancy on the forms supplied. The posted vacancy will be answered within three (3) working days from the time it is taken down, unless additional time is

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! I

(b)

required to schedule testing and evaluations. The name of the successful bidder will be posted for three (3) days. If the Company feels that none of the bidders are qualified, the job will be filled from the outside. The Union will be notified by the Company of all applications within three (3) working days of the job being closed.

Employees who are transferred to other classifications shall be given adequate training with equipment and procedures by a qualified person per article 16:04.

(c) An employee promoted through job posting will be paid at a rate of fifty percent of the wage difference, for a maximum period of ninety (90) days. [Employee shall receive full rate once they have successfully qualified for the position and are meeting the required production levels]. A successful bidder will not be allowed to bid on another job for a period of six (6) months from the date of his/her acceptance of his/her new position. During the first ninety (90) days following a transfer, the Company has the right to transfer an employee back to his/her previous position if (s)he is not adequately perfmming the job, at which point bidding rights shall be restored. If the employee decides to return to his/her previous position, during the first ninety (90) days on the new job, because (s)he is not satisfied with his/her new classification, (s)he would then forfeit his/her bidding rights for a period of six (6) months from the date (s)he accepted the new classification.

(d) Employees in the Skilled Trades will not be allowed to apply for a permanent or temporary job posting while apprentice training, and for a period of two (2) years upon obtaining their ticket, or by mutual agreement, at an earlier date.

(e) Promotions and transfers shall be based on seniority, skill, ability, and related job qualifications as per "Letter of Agreement on Skill & Ability Job Selection" dated November 21, 2001 (refer to Exhibit B). All other posted jobs will be awarded based on seniority, the exception to this will be the apprentice selection process. The Company will attempt to move the successful bidder to the job within ten (10) days of the estimated placement date. If the bidder is not moved within ten (l 0) days of the estimated placement date, the bidder will receive the pay rate of the new job.

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16:02

(f) An employee who is absent due to vacation, or because of paid

bereavement, may prior to such absence, fill out job bid form(s)

signed by the employee indicating the job(s) the employee is

interested in. Bid fmms will be maintained by Human Resources.

Should such job(s) be posted during the employee's absence, Human

Resources may submit the bid form in the employee's absence. 1f

awarded bid, the employee must accept bid upon return from such

absence. If the employee is unavailable or unable to perform the job

at the estimated placement date or when the job is available, the bid

becomes null and void.

(a)Except when bumping into a lower classification in lieu of a layoff,

an employee will not suffer a loss of pay when temporarily

transferred, at the convenience of management, to another classification or assignment on the same shift.

(b) If it is anticipated by the Company that a temporary vacancy may

exist for more than ten (10) consecutive working days then the

Company will post a temporary job posting.

(c) Employees applying for a temporary job posting will be given the

opportunity to train for the job according to seniority. Employees in

Labonr Groups I & 2 will be trained last for temporary postings

regardless of seniority, unless mutually agreed upon.

(d) Once an employee has successfully completed training for a job and

is considered capable and qualified then that employee will be

eligible to fill a temporary vacancy for that job when asked.

Generally, seniority will apply when more than one employee is

available unless mutually agreed to by both parties on the basis of

production requirements. An employee may refuse a temporary

transfer, but only once in any twelve (12) month period.

(e) A posting for a temporary job listed in Exhibit B will be in effect

for 24 months after which time the job will be re-posted and

applicants must re-apply. All other postings for a temponuy job will

be in effect for a twelve (12) month period after which the job will

be re-posted and applicants must re-apply.

(f) An employee who holds a temporary transfer position may request

a transfer back to their permanent position after a period of four

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months. The Company's approval shall not be unreasonable

withheld, and will recognize such request within sixty days of

notice.

(g) If no one from within the bargaining unit applies for the job then

the Company shall have the right to go outside the bargaining unit

to fill the opening.

(h) The training period for a temporary job posting listed in Exhibit B

will be extended to four weeks. The training period for all other

temporary job postings will be extended to three weeks.

i)

j)

k)

A temporary job posting is one in which an employee is absent

from a bargaining unit position due to vacation, sickness, leave of

absence, or accident and would be absent from work as per 16:02

(b) of this article.

An employee whose job has been filled by a temporary job

posting and returns to work from an absence as per 16:02 (i) shall

return to the position he held prior to his absence. The employee

who held the position through the temporary posting shall retnrn

to his former position.

A posting shall be put up on the bulletin board naming the people

who are qualified and those who have applied for the temporary

job postings. The Union shall be notified within three days of any

employees who have been temporarily transfeiTed for in excess of

one shift. The notification shall contain the name of the employee

who has been transferred, the job to which he has been

tmnsrerred, the name of the employee he is replacing, and the

length of time he will be in the job, if possible.

16:03 When temporarily transferred to a higher paid classification the employee

will immediately receive the higher rate for the time spent in that

classification.

16:04 The duties of each existing job classification shall be as agreed to by the

patties during the 1990 Pay Equity negotiations and shall be contained in a

separate booklet with the Union Committee having at least one copy:The

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Company reserves the right to add job classifications and/or to revise or amend existing job descriptions/classifications as a means of improving operational efficiency, and/or due to the changing nature of the business. If in the Company's discretion it adds, revises, or amends any job description, the Company shall prepare a job description, make a job evaluation, as per the Job Evaluation Plan agreed to during the 1990 Pay Equity negotiations, and assign such job to the appropriate labour grade. The Company will evaluate any revised job descriptions as per the contract within three (3) months of the settlement of the signing of the new contract. It is understood that re-evaluation of jobs may cause the job to go either up or down.

The Union shall have an opportunity to review the job evaluation and labour grade with the Company. If the Union does not agree to the evaluation or placement in a labour grade, it may file a grievance within ten (10) working days of receipt of such job evaluation. Work on any such job shall start and/or continue during the pendency of the grievance and/or arbitration procedure.

ARTICLE XVU NON-DISCRIMINATION AND HUMAN RIGHTS

17:01 The parties shall not discriminate against any Employee contrary to the Ontario Human Rights Code.

ARTICLE XVIll- COST OF LIVING

18:0 I The cost of living provisions outlined below will be put into effect for the duration of the agreement.

18:02 The cost of Jiving allowance will not be added to the wage rates in Schedule "B", but will be added to each employee's straight-time hourly earnings, and shall be included as part of the regular weekly pay.** It shall also be included in computing overtime premium, holiday and vacation pay, bereavement pay and reporting-in allowance.

**In Year One of this agreement, 0.07 cents will be folded into the cunent base rate. The new COLA calculation will connnence at $0.00. [Change in CPI to reflect agreed wage increases].

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18:03 The basis for computing the cost of living allowance shall be the CPI (Consumer Price Index base year 1981) for Canada, for the preceding year.

The provision will apply in the event that an increase in the Index exceeds 3.0% (three percent) for the first year, 3.0% (three percent) for the second year, 3.0% (three percent) for the third year and, 3.0% (three percent) f?r the fourth year. Any COLA that is triggered in a contract year wrll continue to be paid in subsequent contract years for the duration of the contract.

The increment will be computed monthly on the basis of one cent (.01) for each . 13 change above the kick-in.

In like manner the new kick-in will be determined by utilizing the prior year December CPI.

18:04 No upward adjustment of the Cost of Living Allowance in any contract year may exceed thirty-five cents (.35).

ARTICLE XIX- TERMINATION

19:01

19:02

This agreement shall become effective February 1, 2006 upon its execution by the parties hereto and shall remain in effect through the 31 '' da~ of January, 20 I 0, and shaH continue thereafter from year to year unless etther party gives notice in writing of its intention to terminate or amend the Agreement, such notice shall be given not more :han one hun~red and twenty (I 20) days nor Jess than ninety (90) days pnor to the termmal date of any yearly anniversary date thereafter.

If notice of intention to amend or terminate is given by either party in writing pursuant to 19:01 above, negotiations will commence not later than fifteen (15) days after such notice, or as soon thereafter as is mutually agreed, and if such negotiations do not result in agreement prior to t~e termina1 date of any extension yearly anniversmy date thereafter, then thts agreement may be extended by mutual agreement between the negotiating parties for such further time as is necessary in order to complete negotiations.

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IN WI1NESS WHEREOF the parties hereto have executed this Agreement this 11th day of February 2006.

INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, LOCAL 1547

BY:

Chief Union Steward

Union Steward

BY:

BORGWARNER CANADA INC.

BY:

BY:

BY:

Plant Manager

c::~L~ Chris Tarshus Finance Manager

BY: '-/0. __c~, Marie Campbell Human Resources Manager

SCHEDULE "A"

!. THE NORMAL HOURS OF WORK WILL BE:

(a) 40 hours per week, worked on eight (8) hours per day, Monday to Friday, inclusive, with an unpaid lunch break, for day shift employees, or 40 hours per week, worked on ten (10) hours per day, Monday to Thursday, inclusive, with an unpaid lunch break, as per Schedule "C" which is attached.

(b) 40 hours per week, worked on ten (I 0) hours per day, Monday to Thursday, inclusive, with an unpaid lunch break, for afternoon shift employees, as per Schedule "C" which is attached, or 40 hours per week, worked on eight (8) hours per day, Monday to Friday, inclusive, with an unpaid lunch break, for afternoon shift employees.

(c) 40 hours per week, worked on eight (8) hours per day, Monday to Friday, inclusive, with a paid lunch break, for employees working on a three-shift basis.

This provision shall not be construed as a guarantee of forty ( 40) hours work in any week or eight (8) hours in any day.

2. SHIFT PREMIUM

An employee who works on a shift other than the regular day shift shall be paid for each hour worked on such shift:

(a) Second Shift - an additional fifty-five (55) cents over the regular hourly rate.

(b) Third Shift- an additional sixty (60) cents over the regular hourly rate.

3. OVERTIME (excluding 10-hour "B" shift employees, refer to Schedule "C")

(a) The Company will pay time and one-half his/her regular hourly rate for all hours worked in excess of eight (8) hours per day Monday to Friday, inclusive.

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(b) The Company will pay time and one-half his/her regular hourly rate for all work performed by an employee on Saturday.

(c) The Company will pay double his/her regular hourly rate for all work performed by an employee on Sunday, unless Sunday is his/her regular shift.

(d) Time for which overtime or a premium is paid under this agreement on one basis shall be excluded in the computation of overtime or the premium paid on any other basis.

(e) The general concept is "overtime is overtime". All overtime work will be voluntary.

Employees will be canvassed for overtime work in their permanent classification first, including temporary employees who are currently transferred to a temporary position and have completed five (5) consecutive working days, Monday through Friday inclusive, then those in temporary postings, and then others.

Employees in the shift requiring overtime will be the ones asked with the employees with the least amount of hours asked first if available. Equipment familiarity is also to be a considering factor.

The parties hereto agree to co-operate with each other in the operation of this section to ensure any employee who may be passed in the above shall not suffer a loss of earnings as a result of a bypass.

(f) Overtime and the opportunity to work overtime in any department will be recorded. Employees declining the opportunity to work overtime and those absent from work on the day overtime is scheduled, will have that time counted as though worked. Refused hours in a temporary posting will not be charged, unless the employee is qualified for overtime due to having held the temporary position for 5 consecutive working days, Monday through Friday inclusive. Those employees who accept overtime and then fail to report shall have two (2) times the requested hours charged against them.

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4.

(g) Any employee who through new hire, transfer, bidding, sick leave or other means, starts to work in a job, will be charged with the average number of overtime hours in that job. An employee on an authorized leave of absence will have charged against him/her overtime hours equal to the average overtime hours worked in his/her job during such

absence.

(h) The Company will update records of overtime every other week, in the respective job classification and these records shall be posted. Such records will show, by employee, all overtime hours worked, all declined opportunity hours subject to charge, and all hours accepted and then not worked by the employee's failure to report to work.

(i) Whenever reasonably possible the Company will give twenty-four (24) hours notice of Saturday and Sunday overtime, and 1ikewise four (4) hours advance notice when overtime is required at the conclusion of any employee's regular shift. When this notice is not possible, employees asked and declining overtime will not have such hours charged against them.

An employee will respond to either accept or reject a request for overtime in a timely manner, mutually agreed upon by both the supervisor and the employee (subject to a reasonable time to make personal arrangements) to allow the Company to arrange the coverage. If the employee accepts the request for overtime, but then rejects it later in the shift, that employee will be charged double the amount of overtime hours requested.

REPORTING-IN ALLOWANCE

An employee reporting for work on his/Iter regular shift but for whom no work at his/her regular job is available, will be offered at least four (4) hours employment in other work at his/her regular hourly rate, or, at the Company's option, will be paid four (4) hours time at his/her regular hourly rate. This provision shall not apply when such lack of work is due to labour dispute, fire, flood, or other causes beyond the control of the Company.

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SCHEDULE "B"

5. REST PERIOD WAGES

The Company shall grant one ten (I 0) minute paid rest period in the first I. Effective respectively, on the dates noted the following wage rates shall

half of the shift and one ten (I 0) minute rest period in the second half of the become effective:

shift [refer to Schedule C- l(a)(i) for ten hour shifts]. Effective Dates

Labour Job Feb. 1/06 Feb.l/07 Feb.l/08 Feb. 1/09 6. PAID LUNCH Group Classification

Employees who work on jobs running continuously for 24 hours each I Industria] Electrician $23.32 $24.02 $24.74 $25.61

scheduled workday, on a three-shift basis, which limit such employees to Industrial Mechanic

7-2/3 working hours per shift, shall receive full pay for their established (Millwright)

lunch period. Employees scheduled on a 12-hour concunent shift, shall receive full pay for their established lunch period.

2 Maintenance $21.49 $22.13 $22.79 $23.59

7. WASH-UP 3 Die Repair $19.94 $20.54 $21.16 $21.90

The company shall grant one five (5) minute wash-up before lunch break Utility Maintenance

and one five (5) minute wash-up at the end of the shift. & Oiler

Chain Manufacturer

8. CALL IN Component Parts

Operator

Employees who are requested to return to work after their regular shift has been completed shall be paid for a minimum of four (4) hours work at his/her regular rate, unless the time spent at the factory exceeds two and one-half(2.5) hours in which case (s)he will be paid the appropriate overtime for 4 Chain Assembler $19.64 $20.23 $20.84 $21.57

the hours worked. Chain Operator

(Inspector)

9. STANDBY PAY Furnace Operator Pin Cutoff Operator

Employees who are requested by the Company to be on standby, i.e. Furnace Press Operator

Operators and Industrial Mechanics, will be paid a standby fee of $40.00. If the employee is required to go to the factory while on standby, (s)he will be 5 Rivet & Prestress $19.52 $20.11 $20.71 $21.43

paid for four (4) hours work at his/her regular rate, unless the time spent at Operator

the factory exceeds four (4) hours in which case (s)he will be paid the Tumbler & Wash

applicable overtime for the hours worked. Operator

Shipper/Receiver

6 Labourer/Janitor $18.89 $19.46 $20.04 $20.74

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2.

3.

New employees, except those in an apprenticeship program approved by the Company, shall be hired at a rate fifty cents (50) cents below the regular rate for the job for the full duration of the probationary period. Upon attaining seniority, the employee shall receive the regular rate for the job. The Company also agrees to pay the full rate once the employee has successfully qualified for the position and is meeting the required production levels

The Company will provide preventative maintenance training for all machine operators.

4. Group Leaders will be paid $1.00/hour above their normal hourly rate.

SCHEDULE "C"

It is hereby agreed between BorgWamer Canada Inc. and the International Association of Machinists and Aerospace Workers to modify the collective agreement for the purposes of establishing a 4-day week, I 0-hr shift afternoon (Shift B). It is agreed that the following articles are to be modified:

Schedule A, Article 2, Schedule A, Article 3, Article XI, Article XIII,

"Shift Premium"; "Overtime"; "Paid Holidays"; "Bereavement Pay".

I. (a) The hours of work for "Shift B" will be from 3:30p.m. to 2:00a.m., Monday through Thursday inclusive.

(i) "Shift B" employees will be granted an additional I 0 minute rest period at 12 midnight.

(b) The 2"' shift premium will be applicable for all hours worked in "Shift B".

(c) Regular hourly rate will be paid for all hours worked on "Shift B".

(d) Employees on "Shift B" will paid 1.5 times their hourly rate for all work performed in excess of 10 hours per day, Monday- Thursday inclusive.

(e) Employees on "Shift B" will be paid 1.5 times their regular rate for all hours worked on Saturday.

- 33 "

(f)

(g)

Employees on "Shift B" will be paid 1.5 times their regular rate for all hours worked on Friday provided they have worked forty (40) hours, Monday to Thursday inclusive, or provided that they have not worked the forty ( 40) hours because of illness or absence substantiated to the Company's satisfaction.

Employees on "Shift B" will be paid 2 times their regular hourly rate for all hours worked on Sunday.

2. HOLIDAYS

3.

4.

During weeks in which a holiday falls, employees on "Shift B" will be paid I 0 hours at their regular hourly straight time rate for such holidays, and at the Company's discretion may schedule "Shift B" to allow for an additional 30 hours of work, including, but not limited to scheduling "Shift B" to the regular afternoon shift.

BEREAVEMENT

Employees will be paid at ten (10) hours times the employee's straight time hourly rate, per Article XIII of the Contract.

(a) Employees on a three-shift rotation will continue on their normal 8-hour day schedule, Monday though Friday inclusive.

(b) Employees on the day shift will continue on their normal 8-hour day schedule, Monday through Friday inclusive.

It is understood that nothing in this agreement limits the Company in managing the workforce (Article II) or reverting back to the standard shifts.

If the Company changes "Shift B" to the standard 8-hour shifts, it will notify employees as far in advance as possible.

This agreement between the parties is made without prejudice or precedent on either party.

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APPRENTICESHIP PROGRAM

APPRENTICESHIP STANDARDS

The standards of apprenticeship and their application will be under the supervision of the Apprentice Advisory Committee representing the Union and the Company:

In these standards:

(a) "Registration Agency" shall mean the Ontario Ministry of Skills Development Apprenticeship Branch.

(b) "Apprenticeship Agreement" shall mean a written agreement or contract between the Company and the person employed as an apprentice and registered with the registration agency.

(c) "Apprentice" shall mean a person who is engaged in learning or assisting in the trade to which he/she has been assigned under these standards and who is covered by a written agreement or contract with the Company providing for his/her training in accordance with these standards of apprenticeship and who is registered with the registration agency.

(d) "Committee" shall mean the "Apprentice Advisory Committee" organized under these standards.

(e) "Supervisor," or his/her designated representative shall mean the person employed by the Company assigned the responsibility of performing the duties outlined in these standards of apprenticeship.

(f) "Standards of Apprenticeship" shall mean this entire Apprenticeship Program, including these definitions.

APPRENTICESHIP COMMITTEE

The "Apprentice Advisory Committee" will be responsible for the continuous improvement of the Apprenticeship Program and other matters directed by this agreement, and will consist of:

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i. Three (3) members of Management. ii. Three (3) members of the Union Skilled Trades classification,

each a journeyman/woman. iii. The Plant Manager shall act as a final authority on all matters.

The Committee shall meet every six (6) months, or more often, as may be required, to review the progress of the Apprentices in the Program and the Program itself to ensure compliance with the provisions of the Trades Qualification Act.

APPLICATIONS

Upon posting for an apprenticeship by the Company, applications for apprenticeship will be received by the Human Resources Department from applicants considering themselves eligible under this program of selection. Selection of apprentices under the program shall be made from qualified applicants without regards to race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, record of offenses, marital status, same-sex partnership status, family status or handicap, in accordance with objective standards after full and fair opportunity for application; and this program shall be operated on a completely nondiscriminatory basis.

In filling apprentice positions, internal interested parties satisfying the apprenticeship eligibility requirements will be given the opportunity to undergo the apprenticeship selection process before going outside the bargaining unit.

APPRENTICESHIP ELIGffiiLITY REQUIREMENTS

In order to be eligible for an apprenticeship under these standards, the applicant must possess the following qualifications:

1. The applicant shall be eighteen (18) years of age or over. 2. The applicant shall have education to Grade 12 or equivalent

(related training or extension courses). 3. The applicant shall show interest, skill and aptitude for the trade.

Exceptions to these requirements may be made by the Apprenticeship Advisory Committee for applicants who have unusual qualifications.

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APPRENTICESHIP SELECTION PROCESS

Upon satisfying the apprenticeship eligibility requirements, selection for an apprentice shall be based on the following:

1. Successful completion of an appropriate aptitude test provided by an accredited learning institution.

2. Demonstrated ability and skill. 3. Previous experience, education and training. 4. Attendance and reliability. 5. Review of performance appraisals (within past two (2) years). 6. Panel interview (held by the Apprenticeship Advisory Committee).

CREDIT FOR PREVIOUS EXPERIENCE

In conjunction with the Apprenticeship Advisory Committee, a representative of the Ministry of Training - Colleges and Universities, will assist in determining the number of hours of work experience training, if any, that they can apply towards the completion of the apprenticeship program, also whether any Certificates held, or schooling previously taken will be recognized.

TERM OF APPRENTICESHIP

(a) All apprentices will be registered with the registration agency and the appropriate educational institute in the local area. The apprenticeship program will be run in conjunction with the Ministry of Training - Colleges and Universities, under the Apprenticeship and Trade's Qualification Act.

(b) The term of basic Apprenticeship, including Shop Training and Classroom, shall be as per the Ministry of Training requirements.

Shop training shall consist of various work processes and related instruction in order to meet the objective of the developing qualified journeyman! woman.

(c) An apprentice will be trained in accordance to a plant schedule of shop training, and in addition each apprentice will be required during the period of his/her apprenticeship to successfully complete a program of pre­determined hours of related training.

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(d) An apprentice shall be required to work shift work. Overtime worked by an apprentice shall not reduce the period of apprenticeship. An apprentice will receive credit for actual hours to a maximum of forty ( 40) hours per week.

(e) The schedule of shop and related training will be drawn up by the Company and will be reviewed and approved by the Committee concerned and, after approval, the schedule of shop and related training will become a part of the Apprenticeship Program.

(f) Apprentices will be under the innnediate direction of the Maintenance/ Engineering Supervisor. The Maintenance/Engineering Supervisor is authorized to move apprentices from one department to another in accordance with the pre-determined schedule of shop training. The Maintenance/Engineering Supervisor or an individual charged with this responsibility, in consultation with the Committee, will prepare adequate record forms to be filled in by the Maintenance/ Engineering Supervisor or individual under whom the apprentices received direct instruction and experience.

The Maintenance/Engineering Supervisor or individual charged with this responsibility will make a report at the end of each rotational assigmnent or at least every six (6) months on the work and progress of the apprentices under their supervision. These reports will be submitted to the Committee for discussion and recommendation.

(g) If the Supervisor finds that an apprentice shows a lack of interest or does not have the ability to become a competent journeyman/woman, he/she will place all the facts in the case before the Committee for its decision. Under these circumstances the Committee will decide whether an apprentice may be permitted to continue in probationary status; be required to repeat a specified process or series of processes; or have his/her training terminated.

The Committee will have authority to act on a recommendation of the Supervisor that an apprentice be placed on probation or removed from the Apprenticeship Program for such causes as:

(a) Inability to learn. (b) Unsatisfactory work. (c) Lack of interest in his/her work or education.

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(h) Upon recommendation from the Committee, an apprentice, who at the time of his/her selection to the Apprenticeship Program was employed by the Company and who is removed from the Apprenticeship Program for one of the above causes, may be returned consistent with his/her accumulated seniority to the seniority list upon which he/she previously appeared.

(i) An apprentice shall be permitted to resign from the Apprenticeship Program at any time prior to completing 1,000 hours. After 1,000 hours, requests for resignation from the Apprenticeship Program require the approval of the Committee.

0) Where an apprentice is required by the government to pass final examinations in order to qualifY as a journeyman/woman, and where, on failing such examinations, he/she will no longer be permitted registration as an apprentice by the Apprenticeship Branch of the Ministry of Training -Colleges and Universities.

(k) In the above case, the employee will be retrained in a job in the bargaining unit to which their seniority entitles them.

SENIORITY OF APPRENTICES

(a) No apprentice will commence an apprenticeship in a trade when a journeyman/ woman is laid off in the same trade.

(b) An apprentice in the Skilled Trades classification shall have seniority in that classification as of the date of successful completion of the apprenticeship program.

(c) In the case of a layoff in the Skilled Trades classification, the first to go will be the apprentices by seniority.

WAGE RATES

Apprentices will be paid a percentage of the journeyman/woman's rate in the trade in which they are indentured according to the schedule of wages, as per the Apprenticeship Program Letter of Agreement dated December 06, 2001.

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APPRENTICESHIP TRAINING IN RELATED SUBJECTS

(a) Apprentices shall regularly attend day or evening classes in subjects related to the trade. They shall also be required to attend mandatory training courses, which may subsequently be provided for their stndy of trade as prescribed by the Apprenticeship Branch of the Ministry of Training -Colleges and Universities. Time spent by an apprentice in mandatmy classroom instruction will be paid by the Company at his/her regular straight time hourly rate of pay for all time lost from his/her regular work schedule as a result of such mandatory classroom instruction.

(b) Tuition fees which the apprentice is required to pay will be reimbursed by the Company upon successful completion of the course. The employee must submit proof that the course has been successfully completed prior to reimbursement. If the employee fails a course then he/she may retake the course at his/her own expense.

(c) The scheduling of time away, during work hours, to participate in the formal education portion of the program, will be arranged by the Apprenticeship Advisory Committee. No more than two (2) of the employees shall be away from work at the same time, unless approved by the Company.

CERTIFICATE OF APPRENTICESIDP

A certificate of apprenticeship shall be made on a form supplied by the Director of Ministry of Training - Colleges and Universities. On the satisfactory completion of the prescribed apprenticeship periods and the passing of all final examinations as may be required, a diploma will be issued by the Ministry of Training- Colleges and Universities.

CONTINUITY OF EMPLOYMENT

(a) When conditions of business do not permit continuity of employment, the Company may shorten hours or temporarily suspend an apprentice after notice has been given to the Ministly of Training - Colleges and Universities.

(b) An apprentice may be temporarily suspended or his/her apprenticeship contract cancelled for just cause. Notification of such action shall be forwarded to the Director of the Ministry of Training - Colleges and Universities.

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EXHIBIT A

MONEY PURCHASE PENSION PLAN (MPPP) FOR HOURLY EMPLOYEES

This pension plan is intended to provide a regular income after retirement for eligible hourly rated employees of Borg Warner Caoada Inc. This version of the pension plan is effective as of December 31, 1991.

l. The Company will contribute 4% of base pay (straight-time earnings of hours worked including holiday, vacation and bereavement pay of these earnings) and participants will be required to contribute 1% of base pay to MPPP per each year of the contract.

2. In addition participants will be eligible to contribute a further 1% of base pay to the MPPP which the Compaoy would match I%.

Effective Febmary 1, 2009 the Company will match the employee's I% voluntary contribution at 1.5%

3. Participants will be able to contribute up to ao additionallO% of base pay, without any Company match.

Participants will choose how their own contributions and Company contributions will be invested.

The plan will continue to be administered by the Company.

For more infmmation about the plan refer to the Pension booklet.

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EXHIBITB

LETTER OF AGREEMENT: SKILL & ABILITY JOB SELECTION BETWEEN: BorgWamer Canada Inc. AND International Association of Machinists aod Aerospace Workers, Local1547

This letter shall be in effect from the 191h day of March, 2002, aod shall form part

of the Collective Agreement and will be enforceable through the grievance aod arbitration procedure.

The following confirms the parties agreement on the process for the selection of employees for the positions of:

1. Furnace Operator 2. Maintenance 3. Die Repair

The Selection Process is as follows:

1. Management determines need for job.

2. Opening is posted with qualifications derived from job description.

3. Bidders must meet qualifications to be considered for position.

4. Selection for job may be based on the following:

a. Employee skills, training, or testing (Maintenance, Die Repair). b. Job performance evaluation while previously in posted full-time

position. c. Attendance and reliability. d. Interviews. e. Seniority.

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5. If candidates for a position are considered equally qualified (within 15% of points available for specific position), the employee with the higher seniority will be offered the position.

6. Job award is then posted with selection.

Apprentice selection is addressed in the new section on Apprenticeship program.

Signed at Simcoe. Ontario This lith day ofFebruary 2006

For the Company: Dan Shannon

For the Union: Floyd Gilbert

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1 0-Hour Shift - Schedule "C" ...... . .................. 33 Accidental Death and Dismembennent Insurance ........... . Apprenticeship Program ........................................ . Arbitration ........................................................ . Bereavement Pay ................................................ . Bulletin Board........... . ........................... . Call-In ........................................................... . Cost ofLiving ........................................ . Dental Plan .............................................. , ........ .. Drug Plan ........................................................ .. Grievance Procedure ..................... , ...................... . Hospital Insurance ......................... , .................... .. Hours of Work- Schedule "A" ........... , ................... .. Job Classifications- Schedule "B" .......................... .. Lay-Off and Recalls ............................................ .. Leave of Absence ................................................ . Life Insurance .................................................. .. Long-Term Disability Insurance .............................. .. Non-Discrimination and Human Rights ..................... . Overtime ......................................................... .. Paid Holidays .................................................... .. Paid Lunch ........................................................ . Pension Plan (Money Purchase) ............................... . Postings and Transfers ......................................... .. Recognition Exclusions ......................................... . Reservations to Management.. ................................ .. Rest Period ....................................................... .. Reporting-In Allowance ........................................ .. Representation ................................................... .. Safety Prescription Glasses .................................... .. Safety Shoes ...................................................... . Seniority ....................... , ................................... . Shift Premium ........... , ....................................... ..

II 35 8 19 9 31 25 12 12 6 12 28 32 3 10 II 14 25 28 16 31 41 21 I I

31 30 2 21 20 3

28 Short-Term Disability Insurance................................ 11 Skill & Ability Job Selection (Letter of Agreement)......... 42 Standby Pay...... . . . . .. .. . . . . .. . .. . .. . .. . . . . . .. .. . .. . . . . . .. .. . .. ... 31 Strikes and Lock-Outs............................................ I 0 Tennination. ... . . . . . . .. . . . . . . .. . . . ... . .. . . . . . .. ... .. . . . . . .. ... . ..... 26 Tool Allowance ........ , . . . . . . .. . .. . .. .. . .. ... . . . . .. . ... . . . . .. . . . 21 Union Dues Deduction........................................... 20 Vacations............................................................ 17 VisionCare......................................................... 14 Wages and Hours.................................................. 19 Wages- Schedule "B" .. . . . ... . . ............... .. . . . . . . . . . . .. . . ... 32 Wash-Up............................................................ 31


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