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Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN:...

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COLLECTIVE AGREEMENT BETWEEN: WESCON CEDAR PRODUTS LTD. AND: UNITED STEELWORKERS, LOCAL 1-1937 2010 - 2016
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Page 1: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

COLLECTIVE AGREEMENT

BETWEEN:

WESCON CEDAR PRODUTS LTD.

AND:

UNITED STEELWORKERS, LOCAL 1-1937

2010 - 2016

Page 2: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

PREAMBLE ................................................................................................................................................ 4

MASCULINE/FEMINIE REFERENCES ....................................................................................................... 4

ARTICLE I - BARGAINING AGENCY Section 1: Recognition ...................•............................................................................................................. 4 Section 2: Meetings ..................................................................................................................................... 5 Section 3: Bargaining Authority .................................................................................................................... 5 Section 4: Access to Operation , .......................•............................................................................................. 5 Section 5: Correspondence ..................•........................................................................................................ 5

ARTICLE 11- MANAGEMENT RIGHTS Section 1: .................................................................................................................................................... 5 Section 2: ...................................................................................................................................................... 6

ARTICLE III - UNION SECURITY Section 1: Union Shop , ................................................................................................................................. 6 Section 2: Maintenance of Membership ...•..................................................................................................... 6

Section 3: Discharge of Non-Members, ..............................................................................•............................ 6 Section 4: Union Membership ...................................................................................................................... 7 Section 5: Check-off ......................................................•....................•........................................................ .1 Section 6: Social Insurance Number , .............................................................................................................. .1 Section 7: Bulletin Boards ............................................................................................................................ .1 Section 8: Union Dues and Initiation Submitted ............................................................................................ ..1

ARTICLE IV - SHOP COMMITTEE Section 1: Definition ....•................................................................................................................................ 7 Section 2: Composition ................................................................................................................................ 8 Section 3: Notification ................................................................................................................................. 8 Section 4: Shop Committee Activities ............................................................................................................ 8 Section 5: Representation ................................•... , ....................................................................................... 8 Section 6: Union Business ............................................................................................................................ 8

ARTICLE V - HOURS OF WORK AND OVERTIME Section 1: Hours of Work ............................................................................................................................. 9 Section 2: Overtime Payments ...................................................................................................................... 9 Section 3: No Work Guarantee ..........................................................................•......................................... .10 Section 4: Banking ...................................................•.................................................................................... 10 Section 5: Rest Periods ................................................................................................................................. 10

ARTICLE VI- TECHNOLOGICAL CHANGE Section 1: Management Rights ....................................................................................................................... 10 Section 2: Notice of Change, .......................................................................................................................... 10 Section 3: Retaining .................................................................................................................................... .10 Section 4: Discharge ................................................................................................................................... .11

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Page 3: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

ARTICLE VII - WAGE SCHEDULE

Section 1: Wage Rates ................................................................................................................................ .11 Section 2: No Wage Reduction ....................................................................................................................... 11 Section 3: Temporary Assignment ................................................................................................................. 11 Section 4: Premiums ................................................................................................................................... .11 Section 5: New or Significantly Revised Jobs .................................................................................................. 12

ARTICLE VIII- TIME OF PAyMENT ......................................................................................................... 13

ARTICLE IX-STATUTORY HOLIDAYS Section 1: Statutory Holidays ...................................................................... , ................................................. 13 Section 2: Qualifying Conditions .................................................................................................................. .13 Section 3: Statutory Holiday Observed .......................................................................................................... 14 Section 4: Weekly Work Schedule ................................................................................................................. 14 Section 5: Holiday Shift ................................................................................................................................. 14 Section 6: Probationary Employees ................................................................................................................ 14

ARTICLE X - VACATIONS WITH PAY Section 1: One to Five Years' Service .............................................................................................................. 14 Section 2: After Five Consecutive Years to Nine Years' Service .......................................................................... 14 Section 3: After Nine Consecutive Years' Service to Sixteen Years' Service ......................................................... 15 Section 4: After Sixteen Consecutive Years .................................................................................................... 15 Section 5: Payment of Vacation Pay ............................................................................................................... 15

ARTICLE XI- CALL TIME

Section 1: Where No Work ........................................................................................................................... 15 Section 2: Where Work Commences .............................................................................................................. 15

ARTICLE XII- HEALTH AND WELFARE BENEFITS Section 1: Benefit Coverage and Premium Cost ............................................................................................... 16 Section 2: Coverage While on Leave or Lay-off ............................................................................................... 17 Section 3: Eligibility ..................................................................................................................................... 17

ARTICLE XIII - SENIORITY

Section 1: Principle ...................................................................................................................................... 17 Section 2: Reduction and Recall of Forces ................................................................................................... .18 Section 3: Retention during Layoff ............................................................................................................... .18 Section 4: Probationary Period .................................................................................................................... 19 Section 5: Absence without Leave ................................................................................................................. 19 Section 6: Seniority List ................................................................................................................................. 19

ARTICLE XIV - LEAVE OF ABSENCE

Section 1: Injury or Illness ............................................................................................................................ 19 Section 2: Written Permission ...................................................................................................................... 20 Section 3: Maternity, Parental and Adoption Leave ........................................................................................ 20 Section 4: Personal Leave ............................................................................................................................. 20 SectionS: Layoff ' ......................................................................................................................................... 20 Section 6: Bereavement Leave .............................................. ~ ........................................................................ ?.Q,

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Page 4: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

ARTICLE XV - OCCUPATIONAL HEALTH AND SAFETY Section 1: WorkSafe B.C. Requirements ......................................................................................................... 21 Section 2: Joint Committee ........................................................................................................................... 21 Section 3: Investigation , ............................................................................................................................... 21 Section 4: Safety Equipment .......................................................................................................................... 21 Section 5: Tools .......................................................................................................................................... 22 Section 6: Boot Allowance ............................................................................................................................ 22

ARTICLE XVI - RETIREMENT .................................................................................................................... 22

ARTICLE XVII- EMPLOYEE AND FAMILY ASSISTANCE PROGRAM .................................................... 23

ARTICLE XVIII- HARASSMENT AND DISCRIMINATION Section 1: Environment Free of Harassment .................................................................................................... 23 Section 2: Procedure .....................................................................................................•.............................. 23

ARTICLE XIX - CONTRACTORS AND SUB-CONTRACTORS Section 1: .................................................................................................................................................... 24 Section 2: .................................................................................................................................................... 24

ARTICLE XX - PERMANENT PLANT CLOSURE ........................................................................................ 24

ARTICLE XXI- GRIEVANCE PROCEDURES Section 1: Procedure ................................................................................................................................... -.24 Section 2: Time Limit .................................................................................................................................... 2S Section 3: Verbal Warnings .......................................................................................................................... 25

ARTICLE XXII- ARBITRATION Section 1: Arbitration ................................................................................................................................... 25

ARTICLE XXIII - STRIKES AND LOCKOUTS .............................................................................................. 26

ARTICLE XXIV - AMENDMENTS .............................................................................................................. 26

ARTICLE XXV - DURATION OF THE AGREEMENT ................................................................................. 27

APPENDIX ItA" WAGE SUPPLEMENT ...................................................................................................... 28

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Page 5: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

THIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010.

BETWEEN: WESCON CEDAR PRODUCTS LTD. (the "Company")

AND: UNITED STEEL WORKERS, LOCAL 1-1937 (the "Union")

PREAMBLE

The wooden rail and stile door industry in British Columbia is faced with intense competition

from products manufactured in other parts of Canada as well as the United States, China, and

Latin American Countries. It is the intent of the Company, and the Union that this agreement

will promote and improve industrial and economic relationships between all those involved. The

parties agree that flexibility and cooperation are vital in manufacturing quality products in the

most efficient manner for the long term benefit of both the Company and the Employees by ensuring that the operation is successful. Both of these parties recognize that the Company must be profitable in order to provide a stable long term working career for all of its employees. The Company and the Union accept responsibility to observe each and all of the provisions and conditions of this Agreement and to promote orderly and peaceful relations with each other.

MASCULINE/FEMININE REFERENCES

Whenever a masculine reference is used in this Agreement it shall bedeemed to indudethe equivalent feminine references.

ARTICLE i-BARGAINING AGENCY

SECTION 1: RECOGNITION

(a) The Company recognizes the Union as the sole collective bargaining agent of the

employees at and from the Company, except office staff, sales staff, and thefour{4}

existing stock holders and their immediate family, and foreman.

(b) It is agreed that if a dispute arises as to whether or not a person is an employee within the

bargaining unit, and failing agreement between the Parties as to whether or not that

person is an employee within the bargaining unit, it shall be subject to determination by

the Labour Relations Board of B.C.

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Page 6: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

(c) The union agrees to issue a withdrawal card to employees transferred from the

bargaining unit to a job outside the bargaining unit providing that no dispute arises within

the meaning of Clause (b) herein.

SECTION 2: MEETINGS

The Company and the Union will meet at such time and place as may be mutually agreed upon

for the purpose of discussing wages and working conditions and adjusting any matters within the

confines of this Agreement which comes within the scope of collective bargaining between

employer and employee.

SECTION 3: BARGAINING AUTHORITY

The Company agrees that the bargaining authority of the Union shall not be impaired during the

term ofthis Collective Agreement. The Company agrees that the only certification that they will

recognize during the term of the Agreement is that of the Union unless ordered by due process

of law to recognize some other bargaining authority.

SECTION 4: ACCESS TO OPERATION

Official Union representatives shall obtain access to the Company's operation for the purpose of

this Agreement by written permission to be granted by the Company on request and subject to

such reasonable terms and conditions as may be laid down by the Company.

SECTION 5: CORRESPONDENCE

The Company agrees that all correspondence necessary between the Company and the Union

relating to matters covered by this Agreement shall be sent to the President of Local Union 1-

1937.

ARTICLE II - MANAGEMENT RIGHTS

SECTION 1:

The Company sh.all have the exclusive right to manage the operation and services subject to the

provisions of the Collective Agreement, including without limiting the generality of the forgoing

its right to determine:

(a) Employment

(b) Complement

(c) Work method and procedures

(d) Kinds and locations of equipment

(e) Facilities and Buildings

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Page 7: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

(f) Hours of work, scheduling, assignment, classification, and evaluation of employees

(g) Contracting out of services

(h) Organization

(i) Promotion, demotion, layoff and discipline of employees for proper cause

0) Employee training

Provided such determinations do not violate the provisions ofthe Collective Agreementand or in

anyway be used in such a way as to discriminate against any employee.

The Company has the right to make Company policies to be observed by employees provided

these policies do no conflict with the terms of the Collective Agreement.

SECTION 2:

The four (4) existing shareholders and the children of Tom Gierc and Frank Gierc Jr. may

perform bargaining unit work provided no regular employee is displaced or transferred, or

suffers a reduction in regular wages or regular hours of work. Supervisors may perform

bargaining unit work provided they do not fill a bargaining unit position on a regular basis or

provided that no regular employee is laid-off as a result or suffers a loss of regular earnings.

ARTICLE 111- UNION SECURITY

SECTION 1: UNION SHOP

All employees who entered the employment of the Company on or after the signing date of this

Agreement, and all new employees shall, and within thirty (30) calendar days of hire, become

members of the Union and maintain membership therein throughout the term of this Agreement.

SECTION 2: MAINTENANCE OF MEMBERSHIP

Any employee who is a member in good standing, or is reinstated as a member of the Union

shall maintain such membership in good standing throughout the term ofthe Agreement.

SECTION 3: DISCHARGE OF NON-MEMBERS

Any employee who fails to maintain such membership in the Union as prescribed herein by

refusal to pay dues and assessments shall be subject to discharge after seven (7) days' written

notice to the Company of the said employee'srefusal to maintain his membership.

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Page 8: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

SECTION 4: UNION MEMBERSHIP

(a) No employee shall be subject to any penalties against his application for membership or reinstatement, except as may be provided for in the United Steelworkers Constitution, and in accordance with the By-Laws of Local Union No. 1-1937.

(b) Any employee who applies to join the Union pursuant to the provision herein and whose application is rejected by the Union, shall not be subject to discharge from employment.

SECTION 5: CHECK-OFF

The Company shall give all new employees, hired into the Bargaining Unit, the assignment of wages, the forms to be supplied by the Union, said forms to be forwarded to the Union not later than thirty one (31) calendar days following the receipt of the forms.

SECTION 6: SOCIAL INSURANCE NUMBER

The Company shall furnish the Union with the Social Insurance number of each employee on its

payroll on the first occasion when dues are forwarded to the Union after the execution of this

Agreement or after the employee enters the employment ofthe Company, whichever date last

occurs.

SECTION 7: BULLETIN BOARD

The Union shall provide the Company with a bulletin board. Location of the board shall be agreed upon between the Company and the Shop Committee. The size of the bulletin board shall be no larger than 24" by 24". Bulletins posted shall be confined to notices of meetings and other relative matter involving the proper business of the Union. The bulletin board shall be maintained in an orderly manner by the Shop Committee.

SECTION 8: UNION DUES AND INITIATION SUBMITTED

The Company shall forward Union dues and initiation collected from employees through payroll deduction on a monthly basis. The Company agrees to forward outstanding dues and initiation for each month, no later than the following month (example: January dues and initiations shall be forwarded in February).

ARTICLE IV..;. SHOP COMMITTEE

SECTION 1: DEFINITION

For the purpose ·of this Agreement when the term "Shop Committee" is used, it shall mean Shop or Plant Committee, members of which are appointed by the bargaining unit, in a vote supervised by the Union,

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Page 9: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

SECTION 2: COMPOSITION

The Shop Committee shall consist of two (2) employees with completed probationary period of employment with the Company who are members of the Union. Whenever possible they shall be selected from different areas of the plant.

In the event the number of employees working as regular employees in the plant, who are members of the union, exceedsthirty (3~}, the Shop Committee may, at the discretion of the Union, be increased to a maximum of three (3) members.

SECTION 3: NOTIFICATION

The Union will, within fifteen (15) days from the date of this Agreement, notify the Company in writing of the members of the Shop Committee. The Union or the Shop Committee will notify the Company in writing when any member change takes place on the said Committee. No member of the Shop Committee will be recognized by the Company unless the above procedure is carried out.

SECTION 4: SHOP COMMITTEE ACTIVITIES

A Shop Committee member must obtain permission from their immediate supervisor before leaving the job position to aid other employees in Union business on site.

SECTION 5: REPRESENTATION

At all times, when discipline is being issued to an employee, the Company shall have a shop steward in attendance at the disciplinary meeting, unless the employee waives his/her right to have a shop steward present.

SECTION 6: UNION BUSINESS

(a) The Company will grant unpaid leave of absence to employees who are apPointed or elected to Union office for a period up to and including one (1) year. Further unpaid leave of absence may be granted by mutual consent. The employee who obtains this leave of absence shall return to the Company within thirty (30) calendar days after completion of his term of employment with the Union.

(b) The Company will grant unpaid leave of absence to employees who are elected to attend Union meetings and Union conventions or as members of any Negotiating Committee of the United Steelworkers in order that they may carry out their duties on behalf of the Union.

(c) In order for the Company to replace the employee w,ith a competent substitute, it is agreed that before the employee receives this leave of absence, as set out in Clause (a) and (b) above, the Company will be given due notice in writing: in the case of (a) twenty (20) calendar days; and in the case of (b), five (5) calendar days.

(d) The Union will make every effort in requesting such leaves of absence to avoid requests which will unduly deplete the crew, impair production, or inhibit normal functioning of

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Page 10: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

the operation. In such case, the Union will cooperate with the Company in making substitute employees available or select alternate delegates to attend Union functions.

ARTICLE V - HOURS OF WORK AND OVERTIME

SECTION 1: HOURS OF WORK

(a) The normal hours of work will be eight (8) or ten (10) hours per day and forty (40) hours per week.

(b) The normal hours schedule shall be five (5) consecutive eight (8) hour shifts or four (4) consecutive ten (10) hour shifts. It is further understood that the Parties recognize the need for the flexibility of shift schedules as the business develops. Employees may be required to work alternate shifts for better utilization of manpower and equipment. The details of any alternate shifts are to be worked out between the Parties.

(c) It is agreed that overtime work will be awarded by seniority, competency considered, and that the rate of pay, shall be at the rate of the job being performed, plus the applicable overtime rates.

(d) The Company must give twenty four (24) hours notice prior to changing any employees start time.

(e) Seniority and competency will be considered in the assignment of shifts, while ensuring the safe, efficient operation of the plant.

SECTION 2: OVERTIME PAYMENTS

The employee will be paid one and a half (l.5x) times his regular rate when he has worked more than:

• eight (8) hours in a day (when work day is 8 hours) or ten (10) hours in a day (when work day is 10 hours), and

• forty (40) hours in a week, but excluding from the calculations hours worked in excess of eight (8) in a day.

The employee will be paid double time (2x) his regular rate when he has worked more than:

• eleven (11) hours in a day, and • forty-eight (48) hours in a week, but excluding from the calculation hours worked in

excess of eight (8) in a day when working an eight (8) hour shift or ten (10) in a day when working a ten (10) hour shift, and

• on a Sunday, if and only if, the employee has worked forty-eight (48) hours during the previous six (6) consecutive days.

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Page 11: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

For the purposes of calculating overtime, hours worked shall include approved paid absences from work.

SECTION 3: NO WORK GUARANTEE The foregoing provisions ofthis Article shall not be construed as guaranteeing to any employee any number of hours of work per day or per week.

SECTION 4: BANKING OVERTIME The employee has a choice of taking overtime as pay at the applicable overtime rate or may elect to bank his overtime pay at straight-time to use as time off instead of being paid overtime rates. To receive overtime as banked time off instead of being paid overtime rates, the employee must advise payroll of this preference. Overtime work over eight (8) hours in a day or forty (40) hours in a week can be banked at straight-time and overtime work over eleven (11) hours in a day or forty eight (48) hours in a week can be banked at time and one-half (1.5). If overtime is banked then it must be used as time-off before the employee uses his regular annual vacation. Unused overtime must be cashed out at overtime rates on January 31 of each year.

SECTION 5: REST PERIODS All employees shall be entitled to one (1) fifteen (15) minute rest period during each regular shift, provided always that the Company shall have the right to use relief employees for implementing this provision. Lunch period shall consist of an unpaid one-half (1/2) hour break. The shift shall be shortened by five (5) minutes in lieu of a second rest period.

ARTICLE VI - TECHNOLOGICAL CHANGE

SECTION 1: MANAGEMENT RIGHTS Management holds the exclusive right to advance the Company in any area that would aid in the minimization of costs and maximizing of production capabilities. Where technological change is to be implemented, the Company will seek ways and means of minimizing adverse effects on Employees which might result from such changes.

SECTION 2: NOTICE OF CHANGE The Company agrees to provide as much advance notice as is practicable and, except in cases of emergency, not less than one (1) months written notice to the Shop Committee of the introduction and implementation of technological change which would involve the discharge or laying-off of an employee.

SECTION 3: RETRAINING When, as a result of technological change, the Company determines that an employee requires new skills or knowledge in order to perform the duties of his alternative position, the Company will make every reasonable effort to provide the necessary training. All employees shall receive the rate of their previously held job until such time as a new rate is negotiated.

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Page 12: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

SECTION 4: DISCHARGE If no alternative position is available within the Company, based on seniority, willingness to learn, ability to learn, and competency of the employee, and if the employee is permanently laid off from their regular job because of mechanization, technological change or automation, he shall be entitled to severance pay of one (1) week's pay for each year of service with the Company. Said severance pay shall not exceed a maximum of eight (8) weeks' pay per employee. A permanent lay-off is deemed to occur after thirteen (13) weeks or the expiration of an employee's seniority retention, at the option of the employee.

ARTICLE VII- WAGE SCHEDULE

SECTION 1: WAGE RATES The hourly and salaried wage rates are as set out in APPENDIX "A" - WAGE SUPPLEMENT and include the following increases and lump sum payments effective:

March 13, 2010 March 13,2011 March 13, 2012

0% 0% $250.00 Lump sum payout to employees on staff as of March 13, 2011

(prorated for part time staff on basis of hours worked)

August 13, 2012 $250.00 Lump sum payout to employees on staff as of March 13, 2011(prorated for part time staff on basis of hours worked)

March 13, 2013 1% March 13, 2014 1% March 13, 2015 1.5%

SECTION 2: NO WAGE REDUCTION

No employee's wages will be reduced as a result ofthe wage schedule in Appendix "A".

SECTION 3: TEMPORARY ASSIGNMENT

Employees temporarily aSSigned to a different job group due to holidays, illness or injury or other reason, will retain the wage rate of their regular job group when assigned to a lower paid group. If the employee is temporarily assigned to a higher paid group, he shall be paid the higher rate, if the entry rate in the new group is higher than their regular rate. No employee's rate of pay shall be reduced by a temporary assignment.

SECTION 4: PREMIUMS

(a) First Aid Tickets DeSignated First Aid positions shall be posted as required. The Company shall designate two (2) first aid attendants. To be designated as a First Aid Attendant the employee must possess either a valid Level II or Level III Industrial First Aid Ticket

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Page 13: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

In the case of a Level III Industrial First Aid Ticket the following will apply: i) the employee shall receive a premium of fifty cents ($0.50) per hour worked, in

addition to their regular rate. ii) the course costs to renew their Level III Industrial First Aid Ticket shall be paid

by the Company

iii) upon passing the course in (ii) foregoing, the Company will pay up to two (2) weeks lost-time wages fortime spent at the course; it is understood that should the employee leave the Company's employwithinone (1) year of taking the course, the employee shall reimburse these costs to the Company on a pro-rata basis.

In the case of a Level II Industrial First Aid Ticket the following will apply: i) the employee shall receive a premium of twenty-five cents ($0.25) per hour

worked, in addition to their regular rate.

(b) Leadhand Premium

Leadhands shall be paid a premium of one dollar ($1.00) for each hour worked, in addition to their regular job rate. When a Leadhand is required the Company shall post a notice of same, to allow interested employees the opportunity to make their interest known. In the selection of Leadhands it is understood that required competencies include the abilities to organize, prioritize, oversee and lead the safe and efficient conduct of tasks within the assigned work area(s).

SECTION 5: NEW OR SIGNIFICANTLY REVISED JOBS

(a) Where the Company develops or creates a new significantly revised job, the Company shall meet the Union to establish a rate of pay for that job. The rate of pay will be applicable immediately upon the job being performed. The Company and Union shall have thirty (30) working days to reach agreement on a new wage rate.

(b) If no agreement is reached in thirty (30) working days or where the parties are unable to agree on the rate of pay for the new job, such dispute shall be submitted to binding mediation.

(c) An employee shall receive the rate of his previously held job until such time as a new rate is negotiated.

(d) When a permanent rate is agreed upon, the employee shall receive the difference between that rate and his interim rate from the date he started the new or revised job.

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Page 14: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

(e) Rate negotiations are to be guided by the following principle: Job analysis is tobe based on all factors, including but not limited to, skill, knowledge, responsibility and job conditions.

(f) No employee's rate shall be reduced by having their job reviewed through this process.

ARTICLE VIII- TIME OF PAYMENT

Payment of wages due shall be made by the Company every second Friday, after the employee's shift has finished, for work performed during the previous two (2) calendar weeks. Where the regular Friday payday falls on a Statutory Holiday pay cheques will be distributed the previous day and dated the date of issue. Each employee shall be furnished with an itemized statement of earnings and deductions as stipulated by the Employment Standards Act of British Columbia.

ARTICLE IX-STATUTORY HOLIDAYS

SECTION 1: STATUTORY HOLIDAYS

(a) Statutory Holidays are New Years' Day, Good Friday, Victoria Day, Canada Day, British Columbia Day, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day and BoxingDay.

(b) Any employee who works on any statutory holiday shall be paid at rate and one-half for all hours so worked.

SECTION 2: QUALIFYING CONDITIONS

(a) An employee, to qualify for Statutory Holiday pay, must comply with each one of the following three conditions:

i. Have been on the payroll thirty (30) calendar days immediately preceding the holiday

ii. Have worked his last scheduled work day before and his first scheduled work day after the holiday, unless his absence is due to illness, compensable occupational injury or is otherwise authorized by the employer.

iii. Notwithstanding (ii) above, the employee must have worked one (1) day before and one (1) day after the holiday, both of which must fall within a period of sixty (60) calendar days.

(b) In case of illness in (ii) above the employer shall have the right to request a medical certificate.

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Page 15: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

(c) Employeeswhile on leave of absence under Article IV Section 6(a) or any employees while members of a Negotiating Committee under Section 6(b) thereof shall not qualify for paid Statutory Holidays.

SECTION 3: STATUTORY HOLIDAY OBSERVED

Statutory Holidays will be observed on either the designated Statutory Holiday, or another day designated as the Holiday Shift. The Company shall post a notice advising of the designated day at least one (1) week prior to the Statutory Holiday.

SECTION 4: WEEKLY WORK SCHEDULE

Hours paid as Statutory Holiday pay shall be included in the weekly work schedule.

SECTION 5: HOLIDAY SHIFT

An employee working on a paid holiday shall be paid in addition to his holiday pay, rate and one-half for any hours worked on a shift designated as the IIholiday shift".

SECTION 6: PROBATIONARY EMPLOYEES

It is agreed that probationary employees shall not qualify for Statutory Holiday pay.

ARTICLE X-VACATION WITH PAY

With respect to annual vacations and vacation pay the following provisions will apply.

SECTION 1: ONE TO FIVE YEARS' SERVICE

The annual vacation for full-time employees with one (1) to five (5) years' service covered by this Agreement shall be two (2) weeks, and the pay therefore shall be based upon four per cent (4%) of the total wages or salary earned by the employee during the period of entitlement, or eighty (80) hours at the hourly rate of the employee's regular job, whichever is greater.

SECTION 2: AFTER FIVE CONSECUTIVE YEARS TO NINE YEARS' SERVICE

The annual vacation for full-time employees after five (5) consecutive years to nine (9) years' service covered by this Agreement shall be three (3) weeks, and the pay therefore shall be based upon six per cent (6%) of the total wages or salary earned by the employee during the period of

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entitlement, or one hundred twenty (120) hours at the hourly rate of the employee's regular job, whichever is greater.

SECTION 3: AFTER NINE CONSECUTIVE YEARS SERVICE TO SIXTEEN YEARS' SERVICE

The annual vacation for full time employees with nine (9) consecutive years to sixteen (16) years' service covered by this Agreement shall be four (4) weeks, and the pay therefore shall be based upon eight per cent (8%) of the total wages or salary earned by the employee during the period of entitlement, or one hundred and sixty (160) hours at the hourly rate of the employee's regular job, whichever is greater.

SECTION 4: AFTER SIXTEEN CONSECUTIVE YEARS SERVICE

The annual vacation entitlement for regular full time employees after having completed sixteen (16) consecutive years of employment shall be 4 weeks' vacation plus one (1) additional day of vacation for every two (2) years' of service after the sixteenth (16) year of service to a maximum of five (5) additional days after the twenty sixth (26) year.

SECTION 5: PAYMENT OF VACATION PAY

The Company shall pay all employees all of their outstanding accrued Vacation Pay on the pay cheque for the last pay period ending in April each year. An employee who does not want his Vacation Pay paid to himon the pay cheque for the last pay period ending in April shall notify the Company in writing no later than March 31st

, in such case the employee shall be paid a proportionate share of his Vacation Pay upon taking Vacation and will make written application for said Vacation Pay a minimum of two (2) weeks prior to taking Vacation.

Where an employee requests their outstanding accrued vacation pay entitlement be paid to them in the last pay period in April, the vacation pay entitlement will not be included in their regular pay calculation but will be paid as a separate cheque.

ARTICLE XI - CALL TIME

SECTION 1: WHERE NO WORK

An employee who is called for work and on reporting finds no work available due to reasons beyond his control, shall be entitled to two (2) hours at the usual rate. This shall not apply if the Company gives sufficient notice cancelling said call.

SECTION 2: WHERE WORK COMMENCES

In the event that an employee commences work on his shift and the operation closes prior to the completion oftwo.(2) hours' work, the employee shall receive four (4) hours' pay at the

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employees regular rate, except where his work is suspended because of inclement weather or other reasons completely beyond the control of the Company, when two (2) hours must be paid.

ARTICLE XII- HEALTH AND WELFARE BENEFITS

SECTION 1: BENEFIT COVERAGE AND PREMIUM COST

The Company will continue to provide the health and benefit plan to eligible employees. The plan will include: Medical Services Plan, Dental, Extended Health, LTD (Long Term Disability), Life Insurance, and Accidental Death and Dismemberment Insurance. The Company shall pay one hundred percent (100%) ofthe premium ofthese benefits.

Life Insurance

Effective April 1, 2006 the amount of Employee Life Insurance will be increased from Twenty-Five Thousand Dollars ($25,OOO.00) to Thirty-Five Thousand Dollars ($35,OOO.00) and effective April 1, 2009 from Thirty-Five Thousand Dollars ($35,OOO.00) to Forty-Five Thousand Dollars ($45,OOO.00).

Accidental Death and Dismemberment Insurance

Effective April 1, 2006 the principal amount of Employee Accidental Death and Dismemberment Insurance will be increased from Twenty-Five Thousand Dollars ($25,000.00) to Thirty-Five Thousand Dollars ($35,OOO.00) and effective April 1, 2009 from Thirty-Five Thousand Dollars ($35,OOO.00) to Forty-Five Thousand Dollars ($45,OOO.00).

Dental

Effective November 1, 2005 the existing coverage shall be replaced with:

Plan A - Basic Coverage 80% Plan B - Major Coverage 50% Plan C - Orthodontic Coverage 50%

Plans A and B have a combined annual maximum benefit of Two Thousand Dollars ($2,OOO.00).

Plan C has a lifetime maximum benefit of Two Thousand Dollars ($2,000.00).

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SECTION 2: COVERAGE WHILE ON LEAVE OR LAY-OFF

(a) Where an employee takes an authorized leave of absence other than Company approved leave for training or injury or illness described in (b) below, the Company shall not be required to continue paying premiums for that employee's health and welfare benefits. The employee shall be given the option of paying the premiums for the duration of his leave of absence.

(b) Benefit coverage while on leave for injury or illness shall be one (1) year in the case ofa WorkSafe B.C. related injury or illness, and three (3) months for non-work related injury or illness.

(c) Covered employees shall have one (1) month lay-off coverage from the end of the month in which the employee was laid-off.

(d) Benefit coverage will be reinstated at the beginning of the month following completion of ten (10) days of work in a thirty (30) day period.

SECTION 3: ELIGIBILITY

Employees shall become eligible for benefit coverages at the beginning of the month following completion of their probationary period and meeting other criteria as provided for in the various plan documents.

ARTICLE XIII - SENIORITY

SECTION 1: PRINCIPLE

(a) The Company recognizes the principle of seniority, competency considered. (b) Vacant jobs above Group 1 will be posted on the Company's bulletin board for three (3)

working days. Those jobs in Group 1 as specifically provided for in Appendix "A" will also be posted as provided foregoing. All applicants for the posted positions must indicate their intent by signing for the posting on the approved form. The position shall be awarded on the basis of seniority, competency considered.

(c) This Section shall not apply to temporary replacements of two (2) weeks or less necessitated by illness, injury or other leave of absence, or to temporary replacement of longer duration for employees on vacation, but in filling these vacancies senior employees will be given preference in accordance with Article XIII.

(d) Training

i) When training for jobs in Group 2 and above is required, the training posting shall be posted for three (3) working days on the Company's bulletin board and awarded in accordance with (a) foregoing.

ii) The Company shall pay the course cost for those regular employees whose job requires them to re-certify their Forklift training. Such training shall be paid at regular straight-time rate to a maximum of four (4) hours.

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SECTION 2: REDUCTION AND RECALL OF FORCES

(a) Reduction of forces will occur by reverse order of seniority, competency considered.

(b) During a reduction offorces where an employee's seniority is such that he will not be able to keep his regular job he may elect to obtain a job paying a higher rate, subject to the competency of the person involved and the provisions of Section 1.

(c) During a reduction of forces where an employee's seniority is such that he will not be able to keep his regular job he may elect whether or not to apply his seniority to obtain a lower paying job or a job paying the same rate of pay subject to competency or accept a layoff until his regular job becomes available.

(d) Recall offorces will occur by order of seniority, competency considered.

(e) Competency shall mean the ability to perform all aspects ota job to management's standard.

{f} In the event of a reduction of forces a reasonable effort will be made to ensure senior employees are able to fill positions held by junior employees so that a senior employee can maintain employment. To support this objective a senior employee will be given the opportunity to bump a junior employee from a job the senior employee is deemed not to be competent for but only where that position does not require more than two {2} working days training to enable one to demonstrate the ability to succeed in the position. In such circumstances an employee may only bump to one {1} position. If deemed unsuited for the position layoff will apply until the employee can be recalled to his regular position, from which he was laid off or seniority retention expires.

SECTION 3: RETENTION DURING LAYOFF Seniority during layoffs shall be retained on the following basis:

(a) Employees with less than six (6) month's service shall retain their seniority for a period of three (3) months.

(b) Seniority retention during layofffor employees with six (6) or more months' service shall equal one-half the time employed by the Company, to a maximum of eighteen (18) months seniority retention.

Example: Employed

8 months 12 months 24 months 36 months

Wescon Cedar Products Ltd.

Retention

4 months 6 months 12 months 18 months

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A laid-off employee's seniority retention under (a) and (b) above is reinstated on the completion of one (1) day's work.

It shall be the Company's responsibility to maintain an address file of its employees and it shall be the employee's responsibility to notify the Company in writing of any change of address or telephone number.

SECTION 4: PROBATIONARY PERIOD

(a) Notwithstanding anything to the contrary contained in this Agreement, it shall be mutually agreed that all employees are hired on probation, the probationary period to continue for forty-five (45) working days, during which they are to be considered temporary workers only,and during this same period no seniority rights shall be recognized. Upon completion of forty-five (45) working days, they shall be regarded as regular employees, and shall then be entitled to seniority dating from the day on which they entered the Company's employ, provided however that the probationary period of forty-five (45) working days shall be cumulative within the one hundred and ten (110) days following the date of entering employment.

(b) Probationary employees may be dismissed during the probationary period on the basis of suitability.

(c) Probationary employees will be called in for work in accordance with their date of hire.

SECTION 5: ABSENCE WITHOUT LEAVE

Any employee who is absent without leave fora period of more than two (2) consecutive working days shall forfeit all seniority rights. This shall not interfere with the employer's right to discharge for proper cause.

SECTION 6: SENIORITY LIST

It is agreed that a seniority list will be supplied to the Union by the Company once per calendar year, setting out the name and starting date with the Company. The Company will advise the Union once each month of changes to the said list.

ARTICLE XIV - LEAVE OF ABSENCE

SECTION 1: INJURY OR ILLNESS

The Company will grant leave of absence to employees suffering illness or injury for the term of this Agreement subject to a medical certificate if requested by the Company. The employee shall have a reasonable period of time to present said certificate. The employee shall report or cause

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to have reported the injury of illness which requires his absence to the Company as soon as may be reasonably possible. Where a medical certificate is obtained the length of leave will be determined by the attending Doctor. The Company may require verification from the employee's Doctor that the employee is fit to resume their normal duties.

SECTION 2: WRITIEN PERMISSION Any employee desiring leave of absence must obtain permission in writing from the Company for such leave, except in cases of illness or injury covered by Section 1 above.

SECTION 3: MATERNITY, PARENTAL AND ADOPTION LEAVE The Company will grant maternity, parental and/or adoption leave as required under the Employment Standard Act.

SECTION 4: PERSONAL LEAVE

The Company will grant leave of absence up to a maximum of six (6) months without pay to employees for compassionate reasons or for educational or training related tothe industry, or extended vacation purposes, conditional on the following terms:

(a) That the employee apply at least one (1) month in advance unless grounds for such application could not be reasonably foreseen.

(b) That the employee shall disclose the grounds and the length of the leave.

(c) That the Company shall grant such leave where a bona fide reason is advanced by the applicant, provided suitable replacements are available.

(d) Leave of absence will not be granted for the purposes of alternate employment.

(e) That the Company shall be required to consult with the Shop Committee in respect of any application for leave under thissection.

SECTION 5: LAYOFF

In the event of a layoff, an employee on Leave of Absence shall receive layoff notice.

SECTION 6: BEREAVEMENT LEAVE

(a) When death occurs to a member of a regular full-time employee's immediate family, the employee, will be granted an appropriate leave of absence for which he shall be compensated at his regular straight-time hourly rate of pay for his regular work schedule for a maximum of three (3) days.

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(b) Members ofthe employee'simmediate family are defined as the employee's spouse, mother, father, brothers, sisters, sons, daughters, mother-in-law, father-in-law, step­parents, grandparents, grandchildren, sons-in-law, daughters-in-law, step-children, grandparents-in-Iaw, brothers-in-law, sisters-in-law.

(c) Compensable hours under the terms of this Section will be counted as hours worked for the purpose of qualifying for vacations and for recognized paid holidays, but will not be counted as hours worked for the purpose of computing overtime.

ARTICLE XV - OCCUPATIONAL HEALTH AND SAFETY

SECTION 1: WORKSAFE B.C. REQUIREMENTS WorkSafe B.C. will be the binding force behind all safety regulations, rules and requirements.

SECTION 2: JOINT COMMITTEE

(a) The Company and the Union will establish an Industrial Health and Safety Committee consisting of two (2) representatives form the Company and two (2) representatives from the Bargaining Unit.

(b) The Committee shall meet once per month at a mutually agreed time.

(c) Employees will be paid up to two (2) hours at straight-time while attending committee meetings.

(d) The general duties of the Industrial Health and Safety Committee shall be consistent with WorkSafe B.C. regulations.

(e) A copy of the Committee Meeting Minutes will be given to the Union.

SECTION 3: INVESTIGATION In the case of a fatal accident, the Industrial Health and Safety Committee shall, within forty eight (48) hours, conduct an investigation into the accident. Anyone or all employees working in the immediate proximity when a fatal accident has occurred may without discrimination refrain from working the balance of the shift with no pay.

SECTION 4: SAFETY EQUIPMENMT The Company shall provide at no cost to employees, the following personal protective equipment when required by the Company and/or by WorkSafe B.C. Regulations:

i) eye protection ii) gloves

iii) hearing protection (muffs) iv) respiratory protection v) aprons

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The Company shall replace the foregoing articles at no cost to the employee when they are presented worn or damaged beyond repair by normal use; other replacement shall be at the

employee's cost. On a one-time basis, at the option of the employee, the Company will reimburse the employee fifty percent (50%) of the cost of molded earplugs to a maximum reimbursement of fifty dollars

($50.00).

Within two (2) months of ratification ofthis Agreement the Company will provide each employee with a locker solely for safekeeping ofthe employee's safety equipment and work related equipment. The Company will also provide the lock for the locker and may enter said locker at any time. The said equipment shall be retrieved/stowed by the employee before/after

the work shift.

SECTION 5: TOOLS

All employees are required to supply their own measuring tape, of a type stipulated by the Company, and to maintain it in good order. The employee may purchase the measuring tape from the Company at the purchase price. If under normal conditions the tape becomes damaged beyond repair, it will be exchanged for a new one, at no cost to the employee.

SECTION 6: BOOT ALLOWANCE

Commencing at the employee's first anniversary date and continuing each anniversary date thereafter, the Company will reimburse eligible employees fifty percent (50%) of their incurred cost to purchase a pair of work boots, to a maximum Company payment of seventy-five dollars ($75.00). To be eligible the employee must have wor~ed a minimum of one thousand eight hundred (1,800) hours in the twelve (12) months immediately preceding the anniversary date. Said boots must meet acceptable standards, including having steel toes.

ARTICLE XVI - RETIREMENT

Effective April 1, 2006 a Group Registered Retirement Savings Plan (RRSP) will be established based on the following principles:

(a) To be eligible to join the RRSP, the regular employee must have completed two (2) years' service with the Company. Said employee can join and become a member of the RRSP at the beginning of any pay period after becoming eligible.

(b) The member shall contribute ten cents ($0.10) for each hour he works and the Company shall contribute ten cents ($0.10) for each hour worked by the member for a total combined contribution of twenty cents ($0.20) for each hour worked by each member. Effective April 1, 2008 the contribution by each member and the corresponding Company contribution for each member shall each increase ten cents ($0.10) for each hour the

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member works to an increased combined total contribution of forty cents ($0040) for each hour worked by each member. These contributions are "locked in" for the term of the employee's employment with the Company.

(c) Upon joining the RRSP a member must continue contributionsfor a minimum of thirteen (13) pay periods and must give the Company a minimum of fourteen (14) days written notice of intent to cease contributions; in such case, contributions will be stopped at the end of the pay period in effect at the expiration ofthe notice.

(d) A member who has previously ceased contributions has one opportunity to recommence his contributions to the RRSP, after providing the Company a minimum of fourteen (14) days written notice of same. Should said member again cease his contributions he can not again recommence contributions.

(e) A member may make additional unmatched voluntary contributions in accordance with (c) and (d) foregoing. Such contributions must be in increments of five cents ($0.05) per hour worked and are "locked in" for the term of the employee's employment with the Company.

ARTICLE XVII..., EMPLOYEE AND FAMILY ASSISTANCE PROGRAM

The Company agrees to fund and participate in the Employee and Family Assistance Program operated by the South Vancouver Island Assessment and Referral Service on a global basis.

ARTICLE XVIII- HARASSEMENT AND DISCRIMINATION

The Parties agree to a working environment that is free from harassment and discrimination.

SECTION 1: ENVIRONMENT FREE OF HARASSMENT

The Union, the employees and the Company recognize the right of employees to work in an environment free from harassment, and the Company shall take such actions as are necessary respecting an employee engaging in harassment in the work place. The Company's management, employees and the Union shall abide by those stipulations set out in the Human Rights Code.

SECTION 2: PROCEDURE

(a) An employee who wishes to pursue a concern arising from an alleged harassment may submit a complaiht in writing within fourteen (14) days of the latest alleged occurrence through the Plant Manager directly. Complaints 6fthis nature shall be treated in strict confidence by the employee and the Plant Manager.

(b) An alleged offender shall be given notice of the substance of such a complaint under this clause and shall be given notice of and be entitled to attend, participate in, and be represented at any hearing under this clause.

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(c) Where the complaint is determined to be of a frivolous, vindictive, or vexatious nature, the Company may take appropriate action. Such action shall only be for just cause and may be grieved pursuant to the grievance procedure in this Agreement.

(d) In cases where harassment may result in the transfer ofthe Employee, it shall be the harasser who is transferred.

(e) The employer designate and the union representative shall investigate the complaint and submit a report in writing to the Company and the Union. If the Company and the Union agree on the disposition of the matter it shall be final and binding. In the event the Company and the Union do not agree, a Fact Finder shall be appointed. The Fact Finder shall investigate the matter and make a final and binding decision regarding its disposition. The Company and the Union shall share equally the costs and expenses of the Fact Finder.

ARTICLE XIX - CONTRACTORS AND SUB-CONTRACTORS

SECTION 1: The Company agrees not to contract out Bargaining Unit Work where such contracting out results in the layoff or reduction of hours of Bargaining Unit Employees.

SECTION 2: In the event of business difficulties or in order to insure competitiveness, the parties shall meet to develop a solution to the matter within a fourteen (14) day period.

ARTICLE XX - PERMANENT PLANT CLOSURE

The Company will give employees and the Union sixty (60) days notice of permanent plant closure.

Employees terminated by the Company because of permanent plant closure, shall be entitled to severance pay equal to one (1) week's pay for each year of continuous service up to a maximum often (10) weeks' pay.

ARTICLE XXI- GRIEVANCE PROCEDURES

SECTION 1: PROCEDURE The Company and the Union agree that, when a grievance arises in the plant coming under the terms of this Agreement, it shall be taken up in the manner set out below.

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Step One The individual employee involved shall first take up the matter with his department supervisor, within fourteen (14) days of the date of the said grievance. If not completed, the grievance is

voided.

Step Two If the grievance is not satisfactorily settled in this way, the same individual, with a member of the Shop Committee shall take up the problem with the Manager or his designate.

Step Three· If the grievance is not then satisfactorily resolved, it shall be referred to the Union and the Plant

Manager or his designate.

Step Four If a satisfactory settlement is not then reached, it shall be dealt with by arbitration as set forth in Article XXII.

SECTION 2: TIME LIMIT If a grievance has not advanced to the next stage under Step Two, Three, or Four within fourteen (14) days after completion of the preceding stage, then the grievance shall be deemed to be abandoned and all rights of recourse to the grievance procedure shall beat an end. The Union shall be bound to proceed in such a case as quickly as may be reasonably possible.

SECTION 3: VERBAL WARNINGS The Company agrees to remove a Verbal Warning from an employee's file twelve (12) months after the date of the warning, provided the employee receives no further discipline during said twelve (12) months.

ARTICLE XXII- ARBITRATION

SECTION 1: ARBITRATION In the case of a dispute arising under this Agreement, which the Parties are unable to settle between themselves as set out in Article XXI, the matter shall be determined by arbitration in the following manner:

Either Party may notify the other Party and the arbitrator in writing, by registered mail, of the question or questions to be arbitrated.

(a) After receiving such notice and statement the arbitrator and the other Party shall within three (3) days acknowledge receipt of the question or questions to be arbitrated.

(b) No one shall serve as an arbitrator who:

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(i) either directly or indirectly has any interest in the subject of the arbitration; (ii) has participated in the grievance procedure preceding the Arbitration; (iii) is, or has been, within a period of six (6) months, preceding the initiation of

arbitration proceedings, employed by any Local Union, or the Company or a company directly engaged in the forest products industry.

(c) The decision of the arbitrator shall be final and binding upon the Parties of the First and Second Parts.

(d) The arbitrator shall be required to hand down his decision within fourteen (14) days following completion of the hearing.

(e) If the parties fail to agree on the selection of a single arbitrator within twenty-one (21) days following the serving of notification in accordance with this Article, they shall request assistance in accordance with the LabourCode.

(f) The Company and the Union agree to divide equally the cost incurred by the Arbitrator in order to settle this grievance.

(g) The Arbitration to be held in the Municipality of North Cowichan or such other place as mutually decided upon.

ARTICLE XXIII - STRIKES AND LOCKOUTS

The Company, the Bargaining Unit and the Union agree that there shall be no strikes or lockouts by the Parties to this Agreement during the terms of this Agreement. There shall also be no production slow-downs that are initiated by the Bargaining Unit or the Union.

ARTICLE XXIV - AMENDMENTS

Amendments to this Agreement may be made at any time during the life of this Agreement by mutual consent of the parties hereto. Such amendments shall be in writing and signed by both parties and shall become a part ofthisAgreement, and they to shall terminate at the same time as this Agreement.

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ARTICLE XXV - DURATION OF THE AGREEMENT

The parties hereto mutually agree the term ofthis Agreement will be six {6} years. The Agreement shall be effective from and after the 13th day of March 2010 to midnight the lih day of March, 2016 and thereafter from year to year unless written notice of contrary intention is given by either Party to the other Party within four {4} months immediately preceding the date of expiry. The notice required hereunder shall be validly and sufficiently served at the Head Office of the Party of the First Part, or at the Local Office upon the Local Officers of the Union, Party of the Second Part, within four {4} months immediately preceding the 12th day of March, 2016. If no agreement is reached at the expiration of this Contract and negotiations are continued, the Agreement shall remain in force up to the timean agreement is reached or until negotiations are discontinued by either Party.

Signed thislfciay otA UG , 2012.

WESCON CEDAR PRODUCTS LTD. UNITED STEELWORKERS,

LOCAL 1-80

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APPENDIX "A"

WAGE SUPPLEMENT

(a) New employees who enter group 1 Door, Reman, or Glass at the entry level rate shall have their rates increased upon completion of the probation period, after six (6) months and after one (1) year in the group.

(b) lYlovement between Group 1 Door, Reman, and Glass by employees who have finished their probation period shall be by posting as per Article XIII Section l(b), when required by (1) below. When moving between these groups, the employees shall start in the new group at the post probation rate. Employees who move within a group shall retain their rate of pay based on their overall time within the group.

(c) Employees who enter in any group above group 1 in Door, Reman or Glass must do so by a posting as per Article XIII Section 1 (b), and shall enter the other group at the entry level rate.

GROUP 1 DOOR (LABOUR)

BUILDING 100'5 & 200'5 & 500111)

CLEANING 100'5 & 200'5 & 500111)

TRIMMING 100'5 & 200'5 & 5001 RUNNING VOLUME STILES

TAILING ON TENONER MORTIZING 100 STILES SANDER OPERATORI1)

TAILING

11)Vacancies will be posted

ENTRY LEVEL

POST PROBATION

AFTER 6 MONTHS AFTER 1 YEAR

Mar 12/10 $11.92 $14.45

$16.46

$16.96

Mar12/11 $11.92 $14.45

$16.46

$16.96

Mar 12/12 $11.92 $14.45

$16.46 $16.96

Wescon Cedar Products Ltd

Mar 12/13 $12.04

$14.59

$16.62 $17.13

Mar 12/14 $12.16

$14.74

$16.79 $17.30

Mar12/1S $12.34 $14.96

$17.04 $17.56

GROUP 1 REMAN (LABOUR)

LUMBER STRIPPING

FINGER JOINTER ASSISTANT

PRESS ASSISTANT

TAILING ON MULTI-RIP

RESAW

CHOP SAW

SLICER

PLANER

SANDER 51"

ENTRY LEVEL POST PROBATION

AFTER 6 MONTHS

AFTER 1 YEAR

Mar 12/10 Mar 12/11 $11.92 $11.92

$13.16 $13.16

$14.45 $14.45 $15.07 $15.07

Mar 12/12 Mar 12/13 Mar 12/14 $11.92 $12.04 $12.16 $13.16 $13.29 $13.42

$14.45 $14.59 $14.74 $15.07 $15.22 $15.37

2010-20 i 6 Collective Agreement

Mar 12/15 $12.34 $13.63

$14.96 $15.60

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APPENDIX II A" WAGE SUPPLEMENT

GROUP 2 DOOR (BUILDER/ASSEMBLY)

DOUBLE END TENONER (Minor Set-Ups) Minor Set-Ups include activities such as:

size change thickness change speed change fence change adjustments related to product quality

GLAZING COMMODITY FRENCH DOORS(2) CLEANING - COMMODITY PANEL DOORS(2) BUILDING - COMMODITY PANEL DOORS(2)

(2) list of Red Circled Employees to be determined

ENTRY LEVEL AFTER 6 MONTHS AFTER 1 YEAR

Mar12/10 Mar 12/11 $17.30 $17.30 $17.91 $17.91 $18.86 $18.86

Mar12/12 $17.30 $17.91 $18.86

GROUP 3 DOOR (SPECIAL BUILDER)

SPECIAL CLEANER & GLAZIER TRIMMING & SANDING SPECIALS SPECIAL BUILDER CUSTOM COMPONENTS

(BREAK OUT & MACHINE) SHIPPER

ENTRY LEVEL AFTER 6 MONTHS AFTER 1 YEAR

MarU/10 $18.86 $19.80 $20.43

Mar 12/11 $18.86 $19.80 $20.43

Mar12/12 $18.86 $19.80

$20.43

Wescon Cedar Products Ltd

Mar12/13 $17.47 $18.09 $19.05

Mar12/13 $19.05 $20.00 $20.63

Mar12/14 $17.65 $18.27 $19.24

Mar12/14 $19.24 $20.20 $20.84

Mar12/15 $17.91 $18.54 $19.53

Mar12/15 $19.53 $20.50 $21.15

continued

GROUP 2 REMAN (CORE PREP)

CLAMP CARRIER VENEER PREPARATION RESAW FORKLIFT (HYSTER) GRADING MULTI-RIP FINGER JOINTER PLANER MINOR SET UPS CHOP SAW RADIO FREQUENCY PRESS

ENTRY LEVEL AFTER 6 MONTHS AFTER 1 YEAR

Mar 12/10 $17.30 $17.91 $18.86

Mar12/11 $17.30 $17.91 $18.86

GROUP 3 REMAN (PRESS OP.)

PRESS OPERATION (ALL SET UPS) SANDER 51"

ENTRY LEVEL AFTER 6 MONTHS AFTER 1 YEAR

Mar 12/10 Mar12/11 $18.23 $18.23 $19.16 $19.16 $19;80 $19.80

MarU/12 $17.30 $17.91 $18.86

Mar12/12 $18.23 $19.16 $19.80

Mar12/13 $17.47 $18.09 $19.05

Mar12/13 $18.41 $19.35 $20.00

2010-2016 Collective Agreement

Mar12/14 $17.65 $18.27 $19.24

Mar12/14 $18.60 $19.55 $20.20

Mar12/15 $17.91 $18.54 $19.53

Mar12/15 $18.88 $19.84 $20.50

29

Page 31: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

APPENDIX ItA" WAGE SUPPLEMENT continued

GROUP 4 DOOR (MACHINE OP.) GROUP 4 REMAN (MACHINE OP.)

TENONER OPERATOR (ALL SET UPS)

DOOR HANGER PLANER OPERATOR (ALL SET UPS)

SLICER OPERATOR (ALL SET UPS)

ENTRY LEVEL

AFTER 6 MONTHS

AFTER 1 YEAR

Mar 12/10 Mar12/11

$20.10 $20.10

$20.39 $20.39 $20.70 $20.70

Mar12/12

$20.10 $20.39'

$20.70

MarI2/13

$20.30

$20.59

$20.91

Mar12/14

$20.50

$20.80

$21.12

Mar12/1S

$20.81

$21.11 $21.44

GROUP 1 GLASS (LABOUR)

GLASS CLEANING BRASS CUTTING

TAILING MACHINES

ASSEMBLING RECTANGLES (simple units)

Mar12/I0 Mar 12/11 Mar12/12 ENTRY LEVEL $11.92 $11.92 POST PROBATION $12.54 $12.54 6 MONTHS $13.81 $13.81 1 YEAR $14.45 $14.45

GROUP 2 GLASS (ASSEMBLY/GLASS CUTTING)

ASSEMBLING CLEAR/DECORATIVE THERMO UNITS ASSEMBLING CLEAR THERMO UNITS GENERICS

REPAIRS -INCLUDES GLASS CUTTING OF REPAIRED PARTS GLASS CUTTING RECTANGLES

ENTRY LEVEL 6 MONTHS 1 YEAR

Mar12/10 $14.75

$15.39 $16.02

Mar 12/11 $14.75 $15.39 $16.02

$11.92

$12.54

$13.81

$14.45

Mar12/I2 $14.75 $15.39

$16.02

Mar12/13

$12.04 $12.67

$13.95

$14.59

Mar12/13 $14.91 $15.54

$16.18

ENTRY LEVEL

AFTER 6 MONTHS

AFTER 1 YEAR

Mar 12/10 Mar12/11

$20.10 $20.10

$20.39 $20.39

$20.70 $20.70

Mar12/14

$12.16 $12.79

$14.09

$14.74

Mar12/14 $15.06 $15.70

$16.34

Mar12/IS

$12.34

$12.98 $14.30

$14.96

Mar12/IS $15.28

$15.93 $16.59

Mar12/12 $20.10

$20.39

$20.70

Mar1Z/13 Mar12/14 MarIZ/IS $20.30 $20.50 $20.81

$20.59 $20.80 $21.11

$20.91 $21.12 $21.44

Wescon Cedar Products Ltd 2010-2016 Collective Agreement 30

Page 32: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

APPENDIX itA" - WAGE SUPPLEMENT

GROUP 3 GLASS (HIGH END)

ASSEMBLING HIGH END COMMODITY UNITS ASSEMBLE/CUT GLASS FOR ONE OFF'S RUNNING/OPERATING/CONTROL OF ALL GLASS MACHINES GLASS CUTTING SHAPES

ENTRY LEVEL 6 MONTHS 1 YEAR

Mar12/10 $16.63 $17.30 $17.91

Mar 12/11 $16.63 $17.30 $17.91

GROUP 4 GLASS (MACHINE OPERATOR/MAINTENANCE)

BEVEL MACHINE OPERATOR/MAINTENANCE

Mar12/12 $16.63 $17.30 $17.91

Mar12/13 $16.80 $17.47 $18.09

Mar12/14 $16.96 $17.65 $18.27

Mar12/1S $17.22 $17.91 $18.54

Mar12/10 Mar 12/11 Mar12/12 Mar12/13 Mar12/14 Mar12/1S RATE $19.80 $19.80 $19.80 $20.00 $20.20 $20.50

GROUP S MAINTENANCE

TOOLING/MACHINE SET-UP & MAINTENANCE

ENTRY LEVEL 6 MONTHS 1 YEAR

TRUCK DRIVER

Mar12/10 $20.70 $20.98 $21.27

Mar 12/11 $20.70 $20.98 $21.27

Mar12/12 $20.70 $20.98 $21.27

Mar12/13 $20.91 $21.19 $21.48

Mar12/10 Mar 12/11 Mar12/12 Mar12/13 Mar12/14 Mar12/1S $3,473.26 $3,473.26 $3,473.26 $3,507.99 $3,543.07 $3,596.22

PER MONTH

(AS PER CURRENT TERMS OF EMPLOYMENT)

Mar12/14 $21.12 $21.40 $21.70

Mar12/1S $21.43 $21.72 $22.02

continued

Wescon Cedar Products Ltd 2010-2016 Collective Agreement 31

Page 33: Collective AgreementTHIS COLLECTIVE AGREEMENT entered into the 9th day of November, 2010. BETWEEN: WESCON CEDAR PRODUCTS LTD.(the "Company") AND: UNITED STEEL WORKERS, LOCAL 1-1937

Letter of Understanding

Between:

Wescon Cedar Products Ltd.

And

United Steelworkers Local 1-1937

Re: Article XVI - Retirement: Registered Retirement Savings Plan

It is agreed in keeping with the intent of the Memorandum of Agreement for settlement of the 2010 - 2016 Collective Agreement, the Union, United Steelworkers Local 1-1937, will endeavour to identify a reputable plan Administrator and a saving's plan to support implementation of the RRSP agreed to in the 2005 - 2010 Collective Agreement between the aforementioned Company and Union.

It is further understood such plan and Administrator to be acceptable to the employer in terms of location and reputation of the plan carrier/administrator.

Signed this 13 Day of It U G 20~

For: United Steelworkers Local 1-1937 Wescon Cedar Products Ltd


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