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1 COLLECTIVE AGREEMENT BETWEEN KRAFT CANADA INC. VANCOUVER, BRITISH COLUMBIA AND UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL LOCAL 2000 AFL – CIO – CLC Effective June 1, 2001 Expiration May 31, 2004
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COLLECTIVE AGREEMENT BETWEEN

KRAFT CANADA INC. VANCOUVER, BRITISH COLUMBIA

AND

UNITED FOOD AND COMMERCIAL

WORKERS INTERNATIONAL

LOCAL 2000 AFL – CIO – CLC

Effective June 1, 2001 Expiration May 31, 2004

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AGREEMENT BETWEEN KRAFT CANADA INC., VANCOUVER, B.C. AND UNITED FOOD AND COMMERCIAL WORKERS UNION LOCAL 2000 CHARTERED BY THE UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION AFL - C10 – CLC Effective June 1, 2001 Expiration May 31, 2004

INDEX OF ARTICLES

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Article Page 1 Scope & Recognition 4 2 No Discrimination 6 3 Management Rights 6 4 Union Security & Representation 6 5 Co-Operation 7 6 Adjustment of Grievances 8 7 Seniority 10 8 Lay-off and Recall/Reduction of Workforce 11 9 Paid Holidays 12 10 Vacations 13 11 Bereavement Allowance and Jury Pay 17 12 Leave of Absence 18 13 Safety & Health 18 14 Severance Pay 19 15 Hours of Work and Overtime 20 16 Wages and Job Rate Rules 23 17 Posting and Filling of Positions 25 18 General Provisions 26 19 Term of Agreement 27 APPENDIX A – Wages 29 APPENDIX B – Benefits 31 APPENDIX C - Benefits for Part-Time Employees 32 APPENDIX D - Apprenticeship Program 33 Letter of Understanding Regarding Article 10 - Vacations 34 Letter of Intent Regarding Article 1.4 – Scope & Recognition 35 Memorandum of Agreement Regarding Pension Plan 36 COLLECTIVE AGREEMENT

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between KRAFT CANADA INC., 395 West 8th Avenue, Vancouver, B.C. (Hereinafter called “The Company”) and UNITED FOOD AND COMMERCIAL WORKERS UNION LOCAL 2000 Chartered by the United Food and Commercial Workers International Union, AFL - C10 - CLC 321- 6th Street, New Westminster, B.C. (Hereinafter called "The Union”) Recognizing that the welfare of the Company and that of its employees depends upon the welfare of the business as a whole, and recognizing further that a relationship of goodwill and mutual respect between employer and employees can contribute greatly to the maintenance and increase of that welfare, the parties join together in the following Agreement. ARTICLE 1 - SCOPE & RECOGNITION 1.1 The Company recognizes the union as the sole collective bargaining agent with

respect to rates of pay, hours of work, and such other working conditions and provisions as are included in this Agreement.

1.2 The Bargaining Unit is composed of all employees at the Company's plant in

Vancouver and branch operations at Victoria, Kelowna and Nanaimo, BC, save and except Sales personnel, Delivery staff, Management and supervisory staff, those employed in a confidential capacity, those with the authority to employ or dismiss, and those excluded by the Labour Code.

1.3.1 Work customarily performed by the employees in the Bargaining Unit shall not be

done in the plant or office by persons excluded from the scope and jurisdiction of this Agreement, except for purposes of experimental development, audit, quality control, on-the-job training or instruction of employees, in cases of emergency, subcontracting, or in the office where the work is part of their regular duties.

1.3.2 Some bargaining unit duties/tests may be re-allocated between Plant and Quality

Control and/or Plant and Maintenance Classifications to enhance production and quality efficiencies. The new and/or changed classifications will be subject to Articles 16.4 and 16.5, and the Union shall be notified in advance in writing.

1.4 It is understood that the company may need to sub-contract work, but the Company agrees to restrict the hiring of sub-contractors to perform such work on the plant or office premises to those instances where:

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1. The work cannot be performed by Bargaining unit employees due to inappropriate

skills, unavailability of qualified personnel, etc. 2. Necessary equipment or tools to perform the work are not available.

3. Such work cannot be performed by Bargaining Unit employees within required time limits.

1.5 Throughout this Agreement, the term "emergency" is understood to mean an Act of

Nature, catastrophe, disaster or any reason of a similar nature and unanticipated conditions when immediate action is necessary to prevent spoilage or loss of product or danger to persons or property.

1.6 Definitions 1.6.1 The term "regular” employee in the Agreement means an employee who is employed

to work the standard work week in the Department in which the individual is employed.

1.6.2 The term "part-time” employee in this Agreement means an employee who is

employed to work less than the standard work week in the Department in which the individual is employed.

In the event the time worked by a part-time employee is in excess of seventy- five percent (75%) of the standard work week, and continues for a period of thirteen (13) consecutive weeks or longer, that particular part-time position shall be posted as a regular position.

The 75% rule described above will not apply where a part-time employee has been assigned to replace a regular employee on a full-time basis for an assignment of one month, or longer where the assignment is of a fixed duration, e.g. a maternity leave.

1.6.3 Part-time employees may work the standard work week for the purpose of working

hours vacated by regular employees who are off work for absences such as vacations, leaves of absence, maternity leaves, sickness, union business

. 1.6.4 Use of the term "employee" throughout this Agreement refers to both regular and

part-time employees. 1.7 Use of the masculine gender in this Agreement shall be considered also to include

the feminine. 1.8 It is agreed that the departments covered by this Agreement are the following:

a) Plant b) Office c) Branches - Victoria, Kelowna and Nanaimo, BC

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ARTICLE 2 - NO DISCRIMINATION 2.1 There shall be no discrimination by the Company or the Union against an employee

because of race, creed, age, colour, sex, marital status, nationality, ancestry, place of origin, or religious, political or Union beliefs.

ARTICLE 3 - MANAGEMENT RIGHTS 3.1 The Union acknowledges the right of the Company to manage its business in all

respects, to direct the work force, and to introduce new or improved methods and facilities.

3.2. The Union further acknowledges that it is the function of the Company to hire,

promote, demote, transfer and lay-off employees, and to suspend, discipline and discharge employees for just and sufficient cause. Any exercise of these rights in conflict or inconsistent with the provisions of this Agreement shall be subject to the provisions of the grievance procedure as set forth herein.

ARTICLE 4 - UNION SECURITY & REPRESENTATION 4.1 Upon the request in writing of an employee, the Company agrees to deduct each

month, from the wages due to such employee, the monthly Union dues and any special levies, such deductions to be indicated on the employee's T-4 slip. All Union dues and special levies so deducted shall be remitted by the Company to the Financial Secretary of the Union within seven (7) days after the date of said deduction, together with a list of the names of the employees from whom deductions were made.

4.2 In the event that Union dues are increased during the term of this Agreement, the

Company shall be given fourteen (14) days' prior notice. 4.3 The Union shall indemnify and save harmless the Company, including its agents and

employees, from any and all claims or actions, brought by an employee arising out of or in any way related to the deductions made in accordance with this article.

4.4 All employees as of the signing of the Collective Agreement who are members of the

Union (in accordance with its constitution and by-laws) and all employees who become members after such date shall as a condition of employment maintain their membership in good standing with the Union so long as this Collective Agreement or its renewal shall continue in force.

In the event that an employee has been expelled from the Union, in accordance with its constitution and by-laws, the employment of said employee shall automatically be terminated.

4.5 The Company shall provide a reasonable number of Bulletin Boards on which the

Union has the authority to post notices relating to matters of interest to the Union

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and the employees. The contents of such notices shall not contain anything detrimental to Company interests.

4.6 The Company agrees to recognize up to three (3) members of the bargaining unit

appointed or elected to a Negotiating Committee, for the purpose of negotiating amendments to this Agreement. Providing sufficient notice is received, time off without pay will be granted to such employees for preparation and negotiating purposes.

4.7 Names of employees covered by this Agreement hired, transferred, or terminated,

shall be submitted to the Union Office once each pay period. This will include a written notification of lay-off, actual lay-offs, and any letter of reprimand issues to an employee.

4.8 The Company agrees to recognize three (3) employees of the Company (excluding

probationary employees), elected or appointed as Stewards to deal with matters under the scope of this Agreement. A Steward shall not leave his post of duty during his normal working hours to discuss grievances with employees and/or Union Representatives without first receiving permission from his immediate Supervisor.

ARTICLE 5 - CO-OPERATION 5.1 During the term of this Agreement, the Company agrees that there shall be no lock-

out of employees and the Union agrees that there shall be no strike.

Neither the Union, nor any of its stewards, officers or representatives, shall order, encourage or support a slow-down or a walk-out.

“Due to the nature of the Company’s business, each party has a continuing obligation during and beyond the expiration of this Agreement or any extended Agreement to provide a full seven (7) calendar days advance notice of its intent to take any action such as a strike, in the case of the Union, or lockout, in the case of the Company. Such full seven (7) calendar days advance notice shall be made via facsimile addressed to the other party’s Principal Officer at their place of business and confirmed by telephone and a letter sent by certified mail, return receipt requested. The party which fails to provide the full seven (7) calendar days notice to the other shall be liable for any and all damages suffered and incurred by the other party.”

5.2 The Company agrees that in the event of a legal strike amongst the employees of a

firm with which the Company is doing business, it will not require or compel members of the Union to service such strike-bound firm by crossing any legally established picket line(s).

ARTICLE 6 - ADJUSTMENT OF GRIEVANCES

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6.1 Should any difference arise between the Company and any of the employees, or between the Company and the Union, as to the interpretation, application or alleged violation of any of the provisions of the Agreement, an earnest effort shall be made to settle such differences without undue delay in the following manner.

Step One: The employee concerned, accompanied by his Steward if he so desires, may within five (5) work days after the incident giving rise to the grievance occurs take the matter up with his immediate Supervisor (either verbally or in writing) who shall give his answer within three (3) work days. Should the grievance not be satisfactorily settled then:

Step Two: The grieved employee along with his Steward may present the grievance in writing to the Manager of the Department and the Supervisor within six (6) work days after the Company decision has been received at Step One. The Company will render its decision in writing within three (3) work days following the Step Two meeting. Should the grievance not be satisfactorily settled then:

Step Three: The Grievance Committee of the Union and Representatives of the Company shall meet within twenty (20) work days after the decision has been received at Step Two. The Company will render its decision in writing within six (6) work days following such meeting. Should the grievance not be satisfactorily settled, then it may be dealt with as hereinafter provided by Arbitration.

6.2 Any difference arising directly between the Company and the Union as to the

interpretation, application or alleged violation of any of the provisions of this Agreement may, if deemed necessary, be submitted by either party to the other at Step Three of the grievance procedure, within fifteen (15) calendar days from the date on which the matter at issue arose.

6.3 In the event that employee is suspended or discharged from his employment, and

believes that the action is without just and sufficient cause, or is in violation of any of the provisions of this Agreement, such action may, if deemed necessary, be taken up at Step Three of the grievance procedure, provided the grievance is filed within fifteen (15) calendar days from the date of said action.

6.4 The Grievance Committee consisting of three (3) members designated by the Union

will be afforded such time off with pay as may be required to attend meetings with management, held at the request of either management or the Grievance Committee.

6.5 Should the Company representative fail to meet the time limits at any step of the

Grievance procedure, the Union may submit the grievance to the next step or to Arbitration after Step 3. Should the Union fail to process the grievance in accordance with any of the above grievance steps, the grievance shall be considered settled on the basis of the last decision, and shall not be subject to further

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proceeding. 6.6 Should the Company and the Union fail to reach agreement upon any grievance dealt

with by them, then either party by giving written notice to the other of their intention may refer such grievance to an Arbitrator within fifteen (1 5) calendar days after receiving the reply of the Company at Step Three.

6.7 Within five (5) days of receiving the notice referred to in Article 6.6, the

parties shall select an Arbitrator. Should the parties fail to agree upon an Arbitrator within five (5) days, then application shall be made to the Minister of Labour of the Province of British Columbia requesting the appointment of an Arbitrator.

6.8 The Arbitrator shall then forthwith consider and determine the matters in issue

which have been submitted to him for disposal and the decision of the Arbitrator shall be final and binding on all parties concerned.

6.9 No matter shall be submitted to arbitration which has not been properly carried

through all previous steps of the grievance procedure. 6.10 The Arbitrator shall not make any decision inconsistent with this Agreement, nor

alter, modify, or amend any part of this Agreement, but shall only consider the question in dispute.

6.11 In the case referred to in Article 6.3, the Arbitrator has the discretion to uphold the Company's action or impose such other penalty as he deems appropriate in the circumstances.

6.12 The time limits mentioned in Article 6 may be extended by mutual agreement of the

parties. 6.13 The cost of the arbitrator shall be shared equally by the parties. Each party will pay

its own costs, including those of its representatives. ARTICLE 7 - SENIORITY 7.1 The term "seniority” shall mean time spent from the most recent hire date in the

bargaining unit by a regular employee. For part-time employees, "seniority” shall mean actual hours spent from the most recent hire date in the bargaining unit by a part-time employee. Seniority rights will apply only to the extent expressly provided in this Agreement.

7.2 An employee will be considered on probation until he has completed three (3)

calendar months of service with the Company. If found suitable, and on completion of the probationary period, the name of the employee will be placed on the

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appropriate seniority list. For regular employees the seniority date shall be the first day of the probationary period, however, part-time employees will be listed in order of the actual number of hours worked.

Probationary employees will not have recourse to the grievance and arbitration procedure in the event their employment is terminated within their probationary period.

7.3 The Company shall prepare two seniority lists, one for regular employees and one for

part-time employees, indicating the employees' name, classification, and the most recent hire date. The part-time list shall also contain the number of hours worked by each employee. Both lists will be forwarded to the Union Office at regular intervals four (4) times a year.

7.4 In the event a regular employee is laid off for lack of work, such employee shall

retain his seniority for a period of six (6) months, and be entitled to recall. Within forty-eight (48) hours of being advised of a recall, such employee must notify the Company of his intent to return to work and make himself available for work within seven (7) calendar days after receiving such notice.

It is agreed that the employees keep the Company informed of their current address and telephone number.

Subject to the provisions of the respective Benefit Plans, participation in such plans will terminate at the end of six (6) months from date of lay-off.

7.5.1 Termination of employment and loss of seniority shall be deemed to have occurred if

a regular employee:

a) resigns; b) retires; c) is discharged for just cause and is not reinstated; d) fails to return to work in accordance with the provision of Article 7.4; e) fails to return to work after the completion of a leave of absence; f) is absent without leave for five (5) consecutive work days without reporting; g) is on continuous lay-off for a period of six (6) months; h) has received severance allowance in accordance with Article 14.

7.5.2 Termination of employment and loss of seniority shall be deemed to have occurred if a part-time employee:

a) resigns; b) retires; c) is discharged for just cause and is not reinstated; d) is called but unavailable for work for five (5) consecutive work days,

unless the Company is satisfied that the employee has a valid reason. e) does not work within a six (6) month period.

7.6 In the event a part-time employee transfers and becomes a regular employee, he

shall transfer to the regular employee seniority list with a seniority date calculated

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on the basis of one (1) standard work day in the Department to which they have transferred, and that number of days back-dated from the date of the transfer to the regular status.

7.7 In the event a regular employee transfers and becomes a part-time employee, he

shall transfer to the part-time employee seniority list with his original hire date and the number of hours worked as a regular employee.

ARTICLE 8 - LAY-OFF AND RECALL/REDUCTION OF THE WORKFORCE 8.1 Where a lay-off in a department becomes necessary, employees will be laid off in the

following order:

a) Employees on probation; b) Part-time Employees providing the employees retained are able to perform the

work available without training; c) Regular Employees in reverse order of their seniority providing the

employees retained are able to perform the work available without training. 8.2 All regular employees (excluding part-time and probationary employees) laid

off in accordance with Article 8.1 shall receive one (1) weeks notice, or pay in lieu of notice.

8.3 Should a regular employee be called in for temporary employment, then the lay-off

would be considered as from the original date of such lay-off. 8.4 Should a regular employee who is on lay-off be called back to work two (2) full

consecutive work weeks, he shall be entitled to another one (1) weeks notice if he is again laid off. In such cases, the lay-off notice may be given as soon as the regular employee returns to work if his supervisor believes it is likely he will be again laid off. It is understood that a regular day's pay for a paid holiday will be considered as a day worked.

8.5 When a lay-off within a department exceeds two weeks, a regular employee on lay-

off may exercise his seniority rights in other departments provided the employee is qualified to perform the job. If and when a regular employee decides to exercise his seniority rights after his lay-off exceeds two weeks and replaces a regular employee in another department, he then becomes a member of the new department on the seniority list.

8.6 In the event of a temporary lay-off (not exceeding two (2) weeks), due to causes

beyond the control of the Company, Article 8.2 does not apply. Should such temporary lay-off extend beyond a two (2) week period, such extension shall be subject to discussions between the Company and the Union.

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8.7 The most senior regular employee will be recalled providing he has the qualifications to perform the work available without training. A part-time employee shall not be hired in a department until such time as any regular employee in the department who has been laid off is recalled to work on a regular or part-time basis.

8.8 In the event of a permanent reduction or job elimination in the regular workforce,

the remedy will be as follows:

a) The regular incumbent of the job affected will receive rate protection for a period of three (3) months.

b) The regular incumbent of the job affected will displace the employee with the

lowest departmental seniority, providing the remaining employee with more seniority is able to do the job. The employee with the lowest departmental seniority will be laid off and recalled as per Article 8.1 to 8.7.

c) Where necessary, training will be provided for the senior employee

whose job has been reduced, in order for the employee to assume the junior position. The only exception would be those positions where training must be done outside the normal plant environment, e.g. maintenance trades.

d) The Company may keep the affected qualified employee on the job for the

purpose of training more senior employees, only until the training is completed. ARTICLE 9 - PAID HOLIDAYS 9.1 Regular employees shall be paid their regular day's pay for the following holidays:

New Year's Day Labour Day Good Friday Thanksgiving Day Easter Monday Remembrance Day Victoria Day Christmas Day Canada Day Boxing Day B.C. Day

There shall be one (1) additional paid holiday, the observance of which shall be determined from year to year by the Company, after consultation with the Union Committee. In the event another holiday is proclaimed by either the Government of Canada or the Government of the Province of British Columbia, such day will also be observed as a paid holiday.

9.2 To be paid for the day observed as a paid holiday, a regular employee must have

worked his last scheduled work day preceding such paid holiday and his first scheduled work day following such holiday. If the regular employee is absent due to illness (excluding WCB and/or Short-term disability) on these scheduled working days, such absence will be considered as time worked for the purpose of qualifying for the payment of the holiday.

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9.3 When a paid holiday falls on a non-scheduled day, such paid holiday shall be observed on the last scheduled working day prior to the paid holiday, or the first scheduled working day following the paid holiday, unless mutually agreed to be observed on another day.

9.4 An employee who works on a paid holiday will receive his holiday pay and in addition,

he will be paid at the rate of double (2) his regular rate for all hours worked. 9.5 A regular employee's regular day's pay referred to in Article 9.1 shall be the

employee's classified rate of pay times the number of hours in a normal scheduled work day. In the event that an employee is assigned to more than one job on their last scheduled working day prior to the holiday, such holiday shall be paid at the highest applicable rate.

9.6 Notwithstanding Article 9.5, part-time employees will be paid an average of their

daily earnings, exclusive of overtime, for the days they have worked in the four (4) week period immediately preceding the week in which the general holiday occurs. Eligibility is governed by the Employment Standards Act of British Columbia.

ARTICLE 10 - VACATIONS 10.1 Annual vacation with pay is provided to all regular employees. For the purposes of

vacation, the vacation year is January 1 to December 31. The length of vacation is determined by the length of continuous service.

10.1.1 Vacation Entitlement Re: New Hire (Regular Only) Hired between January 1st and June 30th of any calendar year:

VACATION TIME TO BE TAKEN AFTER

1 WEEK 6 MONTHS OF SERVICE

2 WEEKS ANNIVERSARY DATE OF HIRE AND BEFORE DECEMBER 31ST

EXAMPLE:

HIRED: June 1, 1992 VACATION: After December 1, 1992 [ 1 week ]

After June 1, 1993 and before [ 2 weeks ] December 31, 1993

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Note: Thereafter, vacation is allocated on a calendar year basis (January 1st to December 31st).

10.1.2 Hired between July 1st and December 31st of any calendar year:

VACATION TIME TO BE TAKEN AFTER

1 WEEK 6 MONTHS OF SERVICE

1 WEEK ANNIVERSARY DATE OF HIRE AND BEFORE DECEMBER 31ST

OR

VACATION TIME TO BE TAKEN AFTER

2 WEEKS ANNIVERSARY DATE OF HIRE AND BEFORE DECEMBER 31ST

EXAMPLE:

HIRED: September 1st, 1992 VACATION: After March 1st, 1993 [ 1 week ]

After September 1st, 1993 and before [ 1 week ] December 31, 1993

OR After September 1st, 1 993 and before [ 2 weeks ] December 31, 1993

Note: Thereafter, vacation is allocated on a calendar year basis (January 1st to December 31st).

10.1.3 Vacation is earned by virtue of service performed and hours worked in the previous

calendar year. Once a regular employee is beyond the first year adjustment period as per Article 10.1.1 and 10.1.2, the following vacation schedules apply:

(a) For regular employees hired prior to June 1, 1998: YEARS OF SERVICE VACATION VACATION PAY

1 TO < 3 2 Weeks 4%

3 to < 8 3 Weeks 6%

8 to < 13 4 Weeks 8%

13 to < 18 5 Weeks 10%

18 + 6 Weeks 12%

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(b) For regular employees hired on or after June 1, 1998: YEARS OF SERVICE VACATION VACATION PAY

1 TO < 3 2 Weeks 4%

3 to < 10 3 Weeks 6%

10 to < 20 4 Weeks 8%

20 to < 25 5 Weeks 10%

25 + 6 Weeks 12%

10.1.4 Vacation pay shall be calculated at the rate of 2% times the number of weeks

entitlement times gross earnings earned during the previous calendar year. 10.1.5 Three (3), four (4), five (5) and six (6) week vacation entitlements may be taken at

any time in the calendar year in which the anniversary date of service falls. 10.2 For each week of vacation, a regular employee will receive either their current

weekly pay or the percentage stipulated in Article 10.1.3 whichever is the greater, providing the employee has worked during the calendar year in which the vacation is taken.

10.3 Part-time employees may schedule up to two weeks vacation in a calendar year.

Vacation will be granted by seniority, from the part-time seniority list, by department. Part-time employees shall receive vacation pay of 4% on every dollar they earn, payable when vacation is taken. If vacation is not scheduled, part-time employees will receive their vacation pay at the end of the Kraft Canada Inc. fiscal year.

10.4 Vacations may be scheduled by seniority outside of the prime vacation period (April

1st to September 30th) without a limitation on consecutive weeks providing the schedule does not interfere with the normal operation of the business.

10.5 Employees shall receive their vacation pay on their last regular day prior to the

vacation, providing the Company has received two (2) full weeks notice in writing. 10.6 An extra day of vacation is granted to an employee for a regular observed Statutory

Holiday or a Company defined Floater Holiday which falls on a scheduled work day within the employee's vacation period. The extra day(s) may be granted at the beginning or the end of the vacation period, or at any time following the vacation within the calendar year in which the vacation is taken.

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10.7 Each regular employee may request in writing their choice of vacation weeks by

March 31. Employees will be notified of their vacation periods as far in advance as possible, due regard being paid to employee's seniority and personal wishes.

Vacations will be granted as follows: a) by seniority within the office, plant, maintenance, equipment repair, and

branches; b) regular employees with three (3) years of service or more are entitled to receive

their vacation within the prime vacation period but will be limited to only one (1) allotment of three (3) consecutive weeks;

c) within the office, plant, maintenance, equipment repair, and branches, the total weeks vacation entitlement divided by 26 (up to the nearest whole number) will determine the number of regular employees that will be allowed off during each week of the prime vacation period;

d) regular employees in the same classification will be allowed their vacation period to be taken at the same time providing it does not interfere with the normal operations of the business.

10.8.1 An employee may request postponement of his annual scheduled vacation under the

following conditions, providing it occurs prior to the vacation commencement:

a) The employee is under the care of a physician due to injury or illness; or b) The Company has filed a WCB claim report for the employee due to

injury.

10.8.2 Employees who are unable to utilize their full vacation allowance in the current vacation year due to disability or WCB illness or injury will be reimbursed for their unused portion upon their return to active duty.

10.9 In the event that an employee retires, terminates or dies in the current year, all vacation earned in the prior year and owed but not being taken in the current

year, plus the pro-rated amount earned as a result of the time worked in the current year, will be paid to the employee or his/her estate.

ARTICLE 11 - BEREAVEMENT ALLOWANCE AND JURY PAY 11.1 An employee absent due to death in his family during periods when he is both

scheduled and available for work, shall receive the following entitlement for time lost during the period between death and three (3) calendar days following the funeral:

a) up to three (3) days' pay for mother, father, sister, brother, children, spouse,

parents-in-law; b) one (1) day's pay for sons-in-law, daughters-in-law, stepchildren, step-parents,

grandparents, grandparents-in-law, and grandchildren.

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11.2 In recognition of the fact that circumstances which call for bereavement leave are

based on individual circumstances, the Company, on request, may grant additional bereavement leave without pay.

11.3 When an employee is called upon to serve on a jury or subpoenaed to appear as a

witness, the Company shall pay the difference between the fee received from the Crown and the employee's regular day's pay, provided:

a) the employee furnishes proof of services by a statement of earnings supplied by

the Court; b) the employee provides the Company with at least forty-eight (48) hours notice

of when he is to report or immediately on notification; c) the employee returns to work if he is called and not kept, however, he shall not

be required to report for work if less than two (2) hours of his normal shift remains to be worked;

d) such duty falls on a regular scheduled work day that the employee would have worked;

e) notwithstanding Article 16.8, an employee will be scheduled on the day shift during the period he is called to serve.

ARTICLE 12 - LEAVE OF ABSENCE 12.1 The Company may, at its discretion, grant a leave of absence without pay for

legitimate personal reasons to an employee who has completed two (2) years of full-time service. The period of leave shall not exceed three (3) months, nor be granted more than once (1) each year. Application for such leave shall be made in writing at least four (4) weeks prior to the date leave is desired to commence. Copies of the request and the Company's decision will be given to the Union.

An employee receiving more than twenty (20) working days as a leave of absence (excluding maternity leave) will not qualify for the vacation guarantee under Article 10.2, but will receive the applicable percentage under 10.1.4.

12.2 A regular employee elected as a delegate to a Union Convention shall, upon request in

writing received by the Company at least fourteen (14) calendar days prior to the commencement date of the leave, be granted a leave of absence without pay not to exceed three (3) weeks without a break in continuity of Company service. It is agreed that no more than one (1) member of the Union be granted such leave concurrently by the Company.

12.3 An employee selected to work on a full-time basis for the Union will, subject to the

operating needs of the business, be granted a leave of absence without pay for a

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period not to exceed one (1) year. The request for such leave must be made two (2) months in advance of the date it is to commence, and not more than one (1) employee shall be granted such leave concurrently under this Article.

12.4 A request for a leave of absence because of pregnancy must be submitted to the

Company at least four (4) months before the expected delivery date, and be accompanied by a written note from the attending physician indicating the expected date of birth and his recommendation that the employee is physically able to continue working.

12.4.1 Employees will be entitled to Maternity Leave and Parental Leave as outlined in the

Employment Standards Act. 12.5 All leaves of absences will be granted without loss of seniority, however, leaves of

absence will not be granted for the purpose of allowing an employee to take another position, try out new work or venture into business for himself. His leave of absence shall be cancelled, and his employment shall be terminated if he engages in activities other than those for which the leave was granted.

12.6 The Company may, at its discretion, grant a leave of absence without pay for

legitimate personal reasons to part-time employees. ARTICLE 13 - SAFETY & HEALTH 13.1 The Company shall continue to make reasonable provisions for the safety and health

of its employees during the hours of their employment. 13.2 It is the responsibility of the employee to observe such safety provisions and to

immediately advise his Supervisor of any unsafe working conditions. Each employee is expected to report promptly all injuries he suffers and all accidents involving the Company's property and equipment which occur while he is on duty.

In consideration of the nature of the Company's business, the Union recognizes the need for maintaining high standards of sanitation and employee health in accordance with Federal and Provincial laws and regulations. The Company agrees to communicate, in writing, to the Union, any changes to such policies and procedures as they affect employees before implementing such changes.

13.3 An employee in the plant department may apply to qualify for an Industrial First Aid

Certificate at any time and the Company will pay the cost of the training providing the employee successfully passes the necessary examinations. When the employee is acting as the First-Aid Attendant, he shall receive the additional premium as follows:

Level 3 - Industrial First Aid $0.75 per hour Level 2 - Occupational First Aid $0.50 per hour

Where a First-Aid attendant is required on a shift, the senior employee who has the required Certificate on the shift shall receive the premium set out above.

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13.4 There shall be a Safety Committee composed of four (4) members, two (2) appointed from the Company and two (2) appointed from the Union. Monthly meetings of the Committee shall be held and minutes posted on the bulletin board.

13.5 When an employee in the plant or branch departments submits proof of purchase of

an approved pair of safety shoes for his personal use at work, the Company will contribute up to a maximum of sixty-five dollars ($65.00) once a year.

An employee may add two years of the safety shoe entitlement together in order to purchase one pair of safety shoes or boots in a two (2) year period.

13.6 The Company shall furnish and launder all uniforms for the Plant and Equipment

Repair at no cost to the employee. For consideration of the need to maintain high standards of sanitation, employees shall be required to wear Company supplied uniforms for all hours worked.

ARTICLE 14 - SEVERANCE PAY 14.1 A regular employee whose employment is terminated by the Company due to such

causes as transfer or discontinuance of the manufacture of a product, introduction of new equipment or processes, closing of the plant or part of the plant, or other causes which insofar as the Company can determine, permanently reduce the work force, shall be entitled to severance pay in accordance with the following provisions:

1. The Company will advise the Union as soon as possible in advance if a permanent

reduction with severance pay as provided in this Article is to take place. 2. An employee who is eligible for Severance Pay shall be paid two (2) weeks pay

for each completed year of service for their first four (4) complete years of service and one (1) weeks pay for each completed year of service thereafter, to a maximum of thirty six (36) weeks' pay.

3. The amount of payment for each week will be calculated at the regular employee's

regular schedule of hours times the regular employee's hourly rate at the date of termination.

4. A regular employee may elect to remain on the seniority list for possible recall. In

such instances, the Company will hold the Severance payment for the balance of the six (6) month layoff period during which time the regular employee may request payment with a complete break in service.

5. Severance Pay shall not be paid:

a) To an employee discharged for just cause;

b) To an employee who voluntarily resigns from the Company’s employ;

c) To an employee who retires from the Company’s employ;

d) In the event of closing the Office or Plant or part(s) thereof due to Acts of

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Nature, or in times of public peril, war, disaster or any other reason of a similar nature.

ARTICLE 15 - HOURS OF WORK AND OVERTIME 15.1 Normal Work Schedule 15.1.1 The normal work week for the Plant department and Equipment Technicians

assigned to the Vancouver metropolitan area shall consist of thirty-six (36) hours per week and the normal work day shall consist of nine (9) hours per shift exclusive of an unpaid meal period. The work week shall consist of four (4) consecutive days, Monday through Friday inclusive.

15.1.2 Notwithstanding the normal work week defined in Article 15.1.1, the normal

work week for the job classifications listed below shall consist of thirty-seven and one half (37.5) hours per week with a work day of seven and one half (7.5) hours per day, exclusive of an unpaid meal period and five consecutive work days, Monday through Friday inclusive.

�� QA Technician �� Maintenance �� Maintenance Apprentice �� Shipper Receiver Distribution

15.1.3 The normal work schedule for the Office department and branches identified in

Article 1.2 and 1.8 shall consist of thirty-seven and one-half (37.5) hours with a normal work day of seven and one-half (7.5) hours exclusive of an unpaid meal period, and five (5) consecutive work days, Monday through Friday inclusive.

15.1.4 For employees hired on or after the effective date of this Collective

Agreement, the regular workweek shall coincide with a payroll week (Sunday-Saturday) and consist of forty (40) hours. During any normal work week, such employees may be assigned to a work schedule consisting of either four (4) days per week, ten (10) hours per day with two (2) consecutive days off or five (5) consecutive days per week, eight (8) hours per day with two (2) consecutive days off.

15.2 Authorized hours worked in excess of the normal work week or the normal work

day outlined in 15.1 and 15.9 shall be compensated at two times (2X) the employee's regular straight time hourly rate.

15.3 There shall be no duplication or pyramiding of overtime payment nor shall the

same hours worked be counted as part of the normal work week and also as hours for which an overtime premium is payable.

15.4 Consistent with efficiency of operations, there shall be an unpaid lunch period

not exceeding sixty (60) minutes in each full shift, and a fifteen (15) minute paid rest period in each completed half shift. A further fifteen (15) minute rest period will be granted for every two (2) hours of overtime worked immediately before or after his scheduled shift providing such overtime exceeds the two (2)

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hour period. The times at which such rest periods shall be taken is subject to Company approval.

15.5 There shall be a definite daily starting time for each employee and remain the

same throughout the week. Any change in the normal work schedules, unless made as a result of an emergency, will be made by the Department Manager and notice of such change will be given in writing to employees, with a copy to the Union executive, at least one (1) calendar week prior to the change. With the exception of lunch and rest periods, daily hours of work shall be consecutive.

15.6.1 All employees shall be given two (2) consecutive days off in each week.

However, whenever possible, employees on a standard thirty-six (36) hour work week will be given three consecutive days off, two of which will be Saturday and Sunday. It is understood that employees shall not be given split days off within the workweek.

. 15.6.2 The Company may vary Articles 15.1.1 and 15.6.1 for Equipment Repair

Technicians assigned to the Vancouver metropolitan area and schedule up to two (2) regular employees to work a split work week as per Article 16.8. One (1) Equipment Repair Technician may also be scheduled to work four (4) consecutive days which would include Saturday as part of the normal work week. It is understood that no single weekly schedule would include two split work weeks and a Saturday. It is further understood that Part-time Equipment Repair Technicians may be scheduled to work a Saturday and/or Sunday as part of the normal work week at regular straight time rate.

15.7 Overtime will be awarded to employees available to work by seniority in the

following priority, at the applicable rate of pay:

a) Regular employees on shift in the classification on which overtime is required, and working in the classification. b) Regular employees on shift, and relieving in the classification in the

department for the majority of the shift. c) Regular employees on shift in the department, who are qualified to perform

the work. d) Regular employees in the classification in the department, and available to

work. e) Regular employees in the department, available to work, and who are

qualified to perform the work. f) Part-time employees in the department, available to work, and who are

qualified to perform the work.

For the purposes of this Article, "available to work" shall mean an employee must have at least eight (8) clear hours of rest from the end of overtime to the start of his next shift. No employee shall work more than sixteen (16)

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hours in one twenty-four (24) hour period from the commencement of his shift.

No employee shall be entitled by reasons only of seniority to perform work on a shift other than that which he regularly works.

15.8 When overtime work is required on a holiday and/or a non-scheduled day, such

work will be awarded to employees available to work by seniority in the following priority, at the applicable rate of pay:

a) Regular employees in the classification on the shift to be worked. b) Regular employees in the classification on all other shifts c) Regular employees in the department on the shift to be worked, and who are

qualified to perform the work. d) Regular employees in the department on all other shifts, and who are

qualified to perform the work. e) Part-time employees in the department who are qualified to perform the

work. 15.9 Alternate Work Schedule –

For Employees Hired Before the Effective Date of this Collective Agreement 15.9.1 Notwithstanding the normal work weeks described above, the implementation of

alternate work schedules such as continuous operations and different shifts may be required to meet the needs of the business.

15.9.2 The normal work week for the alternate work schedule shall be Sunday through

Saturday. 15.9.3 The normal work week for regular employees on the alternate work schedule

shall consist of thirty-six (36) hours per week and the normal work day shall consist of nine (9) hours per shift exclusive of an unpaid meal period. A regular employee will not be required to work a consecutive Saturday and Sunday, except on a voluntary basis.

15.9.4 In an alternate work schedule, all hours worked on a Saturday and Sunday when

they are part of the employee’s regularly scheduled work week shall be paid at their regular rate of pay. All hours worked between 6:00 a.m. and 5:00 p.m. on Sunday when they are part of the employee’s regularly scheduled work week shall be paid an additional $1.00 per hour higher than the employee’s regular rate of pay.

15.9.5 All shifts to be worked and positions to be filled in an alternate work schedule

shall be in accordance with Articles 16 and 17. ARTICLE 16 - WAGES AND JOB RATE RULES 16.1 Basic rates of pay during the term of this Agreement shall be in accordance with

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Appendix A. 16.2 When an employee is temporarily removed from his regular work and placed

on other work for a period of one (1) hour or more in any one (1) day, he shall be paid his regular rate of pay, or the basic rate of the other work, whichever is the greater, provided he can do such other work without assistance.

16.3 In the event an employee requests the Company to change his classification to one

having a lower wage rate than his current rate, such request will only be considered when there is such a job vacancy. The new lower rate will apply from the date of the classification change.

16.4 When a new job is established or an existing job changed, which cannot be properly

placed in an existing classification by mutual agreement, the Company will establish a classification and rate on a temporary basis. If no request has been made by the Union to negotiate the rate within thirty (30) calendar days, the temporary rate and classification shall become a part of the wage scale.

16.5 If the Company and the Union are unable to agree on a rate and classification under

Article 16.4, the disputed rate and/or classification may be treated as a grievance and settled pursuant to the grievance procedure. It is specifically agreed that the arbitrator will have no authority to alter or modify the other existing rates and classifications but he shall have the authority, subject to the provisions of this agreement, to determine the new rate and/or classification.

16.6 An employee called in to work and receiving less than four (4) hours work shall be

paid for four (4) hours. However, if four (4) hours work is not available on the regular job, an employee shall perform such work for the remaining period of time as may be assigned to him at no reduction in the rate of pay. However, if the employee does not wish to work four (4) hours, he shall only be paid for time worked.

16.7 Notwithstanding Article 16.6, an employee in the Equipment Technician

classifications, who are on call at home on evenings and weekends and have use of the Company vehicle, will be paid the overtime rate for actual traveling and work time involved in each call out. For each holiday or non-scheduled day during which at least one (1) call has taken place, a minimum payment of two (2) hours at double time will be made.

16.8 Seniority within the job classification shall determine the shift to be worked. The

Employer shall retain the right at all times to see that the required minimum number of experienced employees are available on each shift to ensure proper and efficient operation. It is agreed that employees working a four (4) day work week shall not change their work week to be effective in a week when a paid holiday occurs.

16.9 Notwithstanding Article 16.8, employees returning to work upon completion of their

vacation period shall return to their last scheduled shift for a period of one (1) week, unless otherwise mutually agreed upon ahead of time.

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16.10 Work performed between 6:00 a.m. and 5:00 p.m. shall be paid at the regular rate. Work performed between 5:00 p.m. and 6:00 a.m. shall be paid at the evening shift rate. The evening shift rate shall be an additional $1.00 per hour higher than the regular rate of pay. Anyone starting a shift after 6:00 a.m. and finishing before 5:00 p.m. will not be entitled to shift differential on overtime. Anyone starting a shift between 2:00 p.m. and 2:00 a.m. will be paid the evening shift rate for the entire shift.

ARTICLE 17 - POSTING AND FILLING OF POSITIONS 17.1 All job vacancies shall be posted within all departments for five (5) work days.

The following order shall apply when considering applicants:

a) Regular employees in the department where the vacancy occurs. b) Regular employees in all other departments. c) Part-time employees in the department where the vacancy occurs. d) Part-time employees in all other departments.

17.2 Seniority, qualifications, aptitude and ability to perform the job in a competent

manner shall be the determining factors in selecting applicants. Seniority shall be the governing factor when qualifications, aptitude and ability are considered by the Company to be relatively equal.

17.3 The successful applicant on a bid job shall be considered to be on trial/training for a

period not exceeding one (1) month. If within the one (1) month period an employee cannot perform the work in the new position in a competent manner or is dissatisfied with the promotion, it is agreed that such employee will revert to his former position and rate of pay.

17.3.1 Where training is required, applicants will be evaluated upon completion of the

training, in order to determine the employee's ability to satisfactorily perform the duties of the job. Work days spent in training will be counted as work days towards completion of the trial/training period.

Prior to the completion of the evaluation period, the assessment of the training employee's performance to date will be reviewed with the employee. The employee shall have the right to have Union representation at the interview.

17.4 The name of the successful applicant on a bid job shall be posted within two (2) weeks from the closing date of the posting. All employees shall be entitled to receive

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their assigned rate of pay for the new position within two (2) weeks after being awarded the position.

17.5 When a temporary job is available at a higher rate of pay, seniority in the

department shall prevail in the filling of such job providing the employee is qualified to perform the work to be done.

17.6 Nothing within this article limits the Company's right to assign or transfer

employees within the same classification to different job assignments within that classification.

17.7 Notwithstanding the above, where the vacancy is caused by short-term illness,

accident, vacations, or leaves of absence including maternity leave, such assignment will be filled with employees that have been cross-trained as per Article 17.8.

17.8 Cross-training of regular employees on jobs other than their own classifications,

shall be undertaken as required, and such job training opportunities will be assigned by seniority, subject to the following:

a) the regular employee has the qualifications to perform the work to be done; and b) once the primary cross-training opportunity has been completed, a regular employee may be considered for a secondary cross-training opportunity.

17.9 When a vacancy occurs, as defined in Article 17.7, the regular employee who has

been cross-trained in this position as primary relief, will be assigned to relieve.

In the event that the regular employee who is cross-trained as primary relief is unavailable, the regular employee cross-trained as secondary relief will be assigned to relieve.

If an employee designated as secondary relief is available to relieve, the employee designated as primary relief, if senior, will have the right to refuse a relief assignment which involves a shift change subject to Article 16.8.

ARTICLE 18 - GENERAL PROVISIONS 18.1 All eligible regular employees (excluding employees on probation) shall, subject to the

conditions therein, have the benefit of the various Plans outlined in Appendix B. 18.2 The Union guarantees that its members will faithfully and diligently perform their

respective duties for the Company and will at all times carry out their individual responsibilities according to the regulations, methods and systems of the Company.

18.3 For the purposes of this agreement “technological change" means:

a) the introduction by the Company into the work, undertaking or business of equipment or material of a different nature or kind than that previously used by the Company in that work, undertaking or business, or

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b) a change in the manner, method or procedure in which the Company carries on

the work, undertaking or business that is related to the introduction of that equipment or material.

but, “technological change" does not include normal lay-offs resulting from a decrease in the amount of work to be done.

18.4 The Company and the Union agree that technological change is both necessary and

desirable in order to ensure the viability of the Company and the ongoing benefits which result to the employees from the most practical and efficient operations of the Company.

18.5 In the event of the occurrence of technological change as defined in Article 18.3,

the affected employees will be given preferential consideration for retraining or other available jobs in the bargaining unit.

18.6 In the event there are no other job opportunities available in the bargaining unit, the

affected employees will be given severance pay in accordance with Article 14, and shall have no other basis of claim for the loss of their employment with the Company.

18.7 The parties to this agreement have agreed to the terms of these Articles in order

to anticipate technological change which may affect the terms, conditions or security of employment of employees covered by this Agreement and to provide provisions that are intended to assist employees affected by a technological change to adjust to the effects of that change.

18.8 The Company will give the Union in writing at least sixty (60) days notice of any

intended technological change that affects the security of employment of a significant number of employees, or the basis upon which the Agreement was negotiated. During the term of this Agreement any disputes arising in relation to the adjustment or application of Article 14, shall be the basis of discussion with the Union.

18.9 The notice given under Article 18.8 shall state the nature of the technological

change, the date on which the Company proposes to effect the technological change, and the approximate number and type of employees likely to be affected by the technological change.

ARTICLE 19 - TERM OF AGREEMENT 19.1 This Agreement shall be effective June 1, 2001 and remain in effect until

midnight of the 31st day of May, 2004 and from year to year thereafter, unless either party gives the other within four (4) months prior to such expiry date, a written notice of its intention to conclude a revision or renewal of this Agreement.

19.2 In the event written notice is given to commence collective bargaining as outlined in

Article 19.1, this present Agreement shall remain in full force during negotiation for

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its renewal or amendment until Sections 60 or 61 of the B.C. Labour Relations Code has been complied with.

19.3 Section 50 of the B.C. Labour Relations Code is excluded from this Agreement. IN WITNESS WHEREOF the parties have signed this Agreement on the day of , 2001 in Vancouver, B.C. KRAFT CANADA INC. UNITED FOOD & COMMERCIAL VANCOUVER, B.C. WORKERS UNION LOCAL 2000 Jim Pritchard, Lou Regenwetter, Plant Manager Assistant to the President

Mark Coulter Paul Nolan Assistant Human Resources Manager Union Bargaining Committee member

Stuart A. McCall Barbara Simpson Associate Director, Labour Resources Union Bargaining Committee Member

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APPENDIX A - WAGES

* The requirements necessary to progress from any given “Maintenance” level to another were set forth in the documents provided the Union during the course of negotiations. In addition to the hourly rates listed above, employees will receive the following one-time, lump sumpayments, less applicable payroll deductions, in accordance with the following schedule:

CLASSIFICATIONS

BASIC June 1/00 Rate

BASIC June 1/01 Year 1 Rate

BASIC June 1/02 Year 2 Rate

BASIC June 1/03 Year 3 Rate

June 1/01 Year 1 Increase

June 1/02 Year2 Increase

June 1/03 Year 3 Increase

Plant/Equipment: Packer I (hired before June 1, 1998)

19.48 19.68 19.98 20.33 0.20 0.30 0.35

Packer II (hired on or after June 1, 1998)

18.20 18.50 18.85 0.20 0.30 0.35

Palletizer Case Printer Utility

21.75

21.95

22.25

22.60

0.20

0.30

0.35

Line Operator Roaster Operator Shipper Receiver Equip Stock Control

21.99

22.19

22.49

22.84

0.20

0.30

0.35

Equip Technician

22.63

22.83

23.13

23.48

0.20

0.30

0.35

Q.A. Technician

23.30

23.50

23.80

24.15

0.20

0.30

0.35

Maintenance* Level 1 Level 2 Level 3 Level 4

23.65 26.05

23.85 25.05 26.25 26.85

24.15 25.35 26.55 27.15

24.50 25.70 26.90 27.50

0.20

0.30

0.35

Office Clerk

19.36

19.56

19.86

20.21

0.20

0.30

0.35

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Effective June 1, 2001 Three hundred dollars ($300.00) Effective June 1, 2002 Three hundred dollars ($300.00) Effective June 1, 2003 Three hundred dollars ($300.00) PROGRESSIVE RATE SCHEDULES FOR NEW HIRES: All Regular and Part-time employees hired on or after June 1, 1995, excluding the Apprenticeship Programs: Plant First 936 hours: Basic rate less $3.00/hour

Next 936 hours: Basic rate less $1.50/hour After 1872 hours completed: Basic rate

Office First 975 hours: Basic rate less $3.00/hour

Next 975 hours: Basic rate less $1.50/hour After 1950 hours completed: Basic rate

All Regular and Part-time employees hired on or after June 1, 2001, excluding the Apprenticeship Programs, will be paid in accordance with the following wage progression:

Hire Rate $3.00 less than the Basic Rate After 1-Year of Service $1.50 less than the Basic Rate After 2-Years of Service Basic Rate

APPRENTICESHIP WAGE RATE SCHEDULE: ��Maintenance Department: percentage of the Maintenance Level 1 rate

6 month period

1st 6 month

2nd 6 month

3rd 6 month

4th 6 month

5th 6 month

6th 6 month

7th 6 month

8th 6 month

Apprentice 65% 70% 70% 75% 75% 80% 90% 90% �� Equipment Department: percentage of Equipment Technician rate

6 month period

1st 6 month

2nd 6 month

3rd 6 month

4th 6 month

5th 6 month

6th 6 month

Apprentice 65% 70% 70% 80% 90% 90%

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APPENDIX B – BENEFITS Kraft Canada Inc. Employee Savings Program: Union Hourly Employees at the Vancouver, B.C. Plant Effective: June 1, 1998 Group Retirement Savings Plan (Group RSP) and Employee Savings Plan (ESP) are part of the Employee Savings Program which is summarized in the Kraft Canada Inc. Employee Savings Program brochure. To be eligible for the Employee Savings Program (Group RSP/ESP) you must be a participant of the Retirement Plan at the Kraft Canada Inc., Vancouver, B.C. Plant. Effective July 1, 2001, Kraft Canada will match each one-dollar ($1.00) of an employee’s contribution, to a maximum of six-percent (6%) of eligible earnings, to the Group Retirement Savings Plan (Group RSP) and Employee Savings Plan (ESP) at a rate of thirty-five cents ($0.35).

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APPENDIX C - BENEFITS FOR PART-TIME EMPLOYEES BENEFITS FOR PART-TIME EMPLOYEES OF KRAFT CANADA INC., VANCOUVER, B.C. MEDICAL AND DENTAL: Basic Medical benefits and Dental benefits are available to part-time employees on the Company payroll who qualify for eligibility. The eligibility requirements are as follows: 1. A Part-Time Employee must have worked 700 regular hours in the previous calendar

year to claim expenses in the current year. 2. The Part-Time Employee must also work a minimum of 32 regular hours in each

calendar month to have expenses incurred in the month payable. This means, that in order to have expenses incurred in June paid by either the Medical or Dental Plan, the Part-Time Employee must have worked 32 regular hours in June and so on for each month throughout the year.

If a Part-Time Employee does not work the required 32 regular hours in a particular calendar month, expenses incurred in that month only will not be paid.

Eligible dependents may claim expenses as well, providing that the part-time employee has met the requirements outlined above. Eligible dependents are defined as spouse, and dependent children up to age 19 if not a student, or up to age 25 if a full-time student. It is important to note that because we must wait until the end of the month to determine if the 32 hours have been worked by each part-time employee, and advise the Benefits Carrier accordingly, that expenses would not be submitted until the month following. In other words, eligible expenses for June should be submitted in July; July's expenses submitted in August, and so on. Coverage begins effective the date of ratification. The Benefits Carrier will have the necessary information on hand. To obtain reimbursement for Dental or Prescription claims, part-time employees will complete claim forms available from the Human Resources Department. PENSION A Part-Time Employee who has completed two (2) years of service becomes eligible to join the pension plan provided earnings are equal to or exceed 35% of the Year's Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan in each year prior or if they have worked at least 700 hours in each year. Contributions and benefits will be prorated based on hours worked. APPENDIX D - APPRENTICESHIP TRAINING PROGRAM

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The following are terms and conditions for the Apprenticeship Training Program for Maintenance and Equipment departments: 1. The Company reserves the right to determine if a trade is required for the program

and how many apprentices are in the Program. 2. The Program will meet the Provincial Government requirements for accreditation. 3. Employees who apply for entry into the Apprenticeship Program shall be pre-

selected by education according to Provincial Government requirements and seniority. Qualifying tests will be administered to determine aptitude and ability. Seniority will be the governing factor when aptitude and ability are considered by the Company to be equal. If none of the employees meet the educational requirements and/or the qualifying tests, or if acceptance into the Program by the Government is not achieved, the Company will select an applicant from outside the Bargaining Unit.

4. Pre-selection procedure will be as follows:

• Applicant will provide proof of Grade 12 education or equivalent with satisfactory standing in Math, Science, and English.

• A copy of “Self Evaluation Examination for Apprenticeship in the Mechanical Trades” published by the Province of B.C. will be given to the employee to

prepare him/herself for a qualifying test. • A test, similar to the Self Evaluation Examination which will be considered the

qualifying test for pre-selection, will be administered by the Company approximately 6 weeks after the employee has received the Self Evaluation.

• A percentage of 75% must be achieved by the applicant in order to be considered for the program by the Company.

5. Any employee who enters the program will continue to accumulate seniority. If an

employee is unable to meet the continued requirements of the Program, he may exercise his seniority rights under Article 8.

6. An apprentice will be required to attend the in-school training sessions as outlined in

the Provincial Government program during which time remuneration will be from Government funds as provided for in the program, any wage difference to be made up by the Company.

7. Apprentices will receive the apprentice wage rate schedule in Appendix "A". 8. Upon completion of the program and Government certification, the apprentice will

receive the rate of Class A Mechanic or Equipment Technician, as applicable, and will be classified as a Class A Mechanic or Equipment Technician.

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LETTER OF UNDERSTANDING Re: Article 10 –Vacations It is understood, that for the term of the collective agreement signed this date, Laurie Gauthier will be entitled to seven (7) weeks' vacation with pay based on 14% of their gross earnings from January 1st to December 31st of the previous year. Dated at Vancouver, B.C. this day of , 2001. KRAFT CANADA INC. UNITED FOOD & COMMERCIAL VANCOUVER, B.C. WORKERS UNION LOCAL 2000

Jim Pritchard, Lou Regenwetter, Plant Manager Assistant to the President

Mark Coulter Paul Nolan Assistant Human Resources Manager Union Bargaining Committee Member

Stuart A. McCall Barbara Simpson Associate Director, Labour Relations Union Bargaining Committee Member LETTER OF INTENT

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Re: Article 1.4 - Scope and Recognition The following geographic areas may require the use of contractors in accordance with the conditions described in Article 1.4:

Vancouver Area - Squamish to Whistler, Chilliwack and East

Victoria Area - North of Cowichan

Kelowna Area - Salmon Arm and North, Merritt and West, Osoyoos and South, Big White and East.

Use of contractors in these areas is not intended to prohibit the use of our own employees when it makes business sense to do so. To promote cost effective, efficient and timely customer service to all geographic regions of the Province, the Company may contract CBE Technician services, when necessary. Dated at Vancouver, B.C. this ______ day of ______________________, 2001. KRAFT CANADA INC. UNITED FOOD & COMMERCIAL VANCOUVER, B.C. WORKERS UNION LOCAL 2000

Jim Pritchard, Lou Regenwetter, Plant Manager Assistant to the President

Mark Coulter Paul Nolan Assistant Human Resources Manager Union Bargaining Committee Member

Stuart A. McCall Barbara Simpson Associate Director, Labour Relations Union Bargaining Committee Member MEMORANDUM OF AGREEMENT Re: Pension Plan

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The Company agrees to provide a special transitional pension income of $1,080 per year to all employees of Kraft Canada Inc., Vancouver, B.C. Plant as of April 1, 1990 (see attachment 1) subject to the following: - The special transitional pension income is payable to eligible employees from their date

of retirement and for as long as they live. - The special transitional pension income is an integral part of the calculation for the

purposes of determining pensions for vesting and other retirement income options. - The vesting rules that will apply are the following:

(a) Employees who are vested and leave the Company may leave their money in the plan and receive retirement income OR transfer the value of the plan to a locked-in R.R.S.P.

(b) Employees who do not transfer the value of their plan will receive retirement income

at normal or early retirement date equal to the amount calculated at the time they leave. If they elect to have retirement income begin before age 60, the reduction for early retirement will apply.

Dated at Vancouver, B.C., this ________day of__________________,1998. KRAFT CANADA INC. UNITED FOOD & COMMERCIAL VANCOUVER, B.C. WORKERS UNION LOCAL 2000

Jim Pritchard, Lou Regenwetter, Plant Manager Assistant to the President

Rod McKay, Paul Nolan Coffee Brewing Manager

Michelle Dicks, Dennis Nimeck Associate Manager, Human Resources

Page 36: WKK1 - Labour Relations Board

36

ATTACHMENT 1 - Re Special Transitional Pension Income The following employees of Kraft Canada Inc., Vancouver, B.C. Plant are eligible for the special transitional pension income: UNION EMPLOYEES - PLANT-WAREHOUSE-EQUIPMENT-EQUIPMENT REPAIR Seniority Date Employee

07/02/58 POWELL, Sidney 10/24/63 SANDY, Wayne 04/15/69 TAYLOR, Ron 03/24/72 SIMPSON, Barb 09/27/73 NOLAN, Paul 04/18/74 VAN GEEST, Leo 04/23/74 BUDNICK, Paul 05/13/74 MACDONALD, Gordon 05/28/74 NIMECK, Dennis 06/24/74 COSCO, Dave 05/20/75 BIGAM, Carrol 11/22/76 GAUTHIER, Laurie 07/26/77 FIELD, Mark 07/26/78 MCNAUGHTON, lnga 11/01/78 BARTOLOMEO, Elena 01/18/79 PEDRON, Giulia 12/06/79 RYSEDALE, Donna 01/31/80 FIELD, Alan 06/13/80 WHITE, Terry 06/01/82 BOTTING, Beverley 02/01/83 GAGNON, Roland 06/01/84 ELLIOTT, Anne 09/10/84 SMITH, Art 09/30/85 RYAN, Judy 05/02/88 RANDLE, Tim 02/29/88 STICKLES, Rob

UNION EMPLOYEES - OFFICE 04/16/74 HENDERSON, Eleanor 02/11/75 SWANN, Sherryl 01/06/81 COBB, Elena 03/01/81 FERGUSSON, Linda 05/26/81 LACKEY, Paula 06/10/81 ANDERSON, Joan 07/01/81 DREGER, Terri 11/23/81 SEVERSON, Beverly Joy

Dated at Vancouver, B.C., this ________day of__________________,1998. KRAFT CANADA INC. UNITED FOOD & COMMERCIAL VANCOUVER, B.C. WORKERS UNION LOCAL 2000 Jim Pritchard, Lou Regenwetter, Plant Manager Assistant to the President Rod McKay, Paul Nolan Coffee Brewing Manager Michelle Dicks, Dennis Nimeck Associate Manager, Human Resources


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