agreement between union drawn steel ii lp and united … fabrication... · union drawn steel ii lp...

AGREEMENT

between

UNION DRAWN STEEL II LP

and

UNITED STEEL, PAPER, FORESTRY, RUBBER,

MANUFACTURING, ENERGY, ALLIED INDUSTRIAL

and SERVICE WORKERS INTERNATIONAL UNION

(UNITED STEELWORKERS)

LOCAL 2308

PRODUCTION AND MAINTENANCE EMPLOYEES

Mar 1, 2017

TABLE OF CONTENTS

Section

Page

DISCLAIMER ................................................................... v

AGREEMENT .................................................................. vi

WORK SHARE PROGRAM .......................................... vi

ARTICLE ONE - PURPOSE AND SCOPE ................... 1

Purpose ............................................................ 1

Observance ...................................................... 2

............ 1

............ 1

ARTICLE TWO - RECOGNITION ............................... 2

Coverage ......................................................... 1

Employee Defined ........................................... 2

Disputed Exclusions ........................................ 3

Supervisors Working ....................................... 4

Contracting Out ............................................... 5

............ 2

............ 2

............ 2

............ 2

............ 3

ARTICLE THREE - COMPANY AND UNION

ACTIVITY ............................................................... 4

Interference or Discrimination ........................ 1

Union Activity ................................................. 2

Intimidation or Coercion ................................. 3

Non-Discrimination ......................................... 4

............ 4

............ 4

............ 4

............ 4

ARTICLE FOUR - UNION MEMBERSHIP AND

CHECKOFF ............................................................. 5

Union Membership .......................................... 1

Check Off and Indemnity Clause .................... 2

............ 5

............ 5

ARTICLE FIVE - WAGES .............................................. 6

Wage Payment Policies ................................... 1

Description and Classification of New or

Changed

Jobs ........................................................ 2

Application of the Standard Hourly Wage

Scales .............................................................. 3

Production and Maintenance Jobs ................... 4

Trade, Craft or Multiple Rated Jobs ................ 5

Learner Jobs .................................................... 6

Performance Standards .................................... 7

............ 6

.......... 10

.......... 13

.......... 13

.......... 14

.......... 14

.......... 14

Section

Cost-of-Living Adjustment ............................. 8

Page

.......... 15

ARTICLE SIX – HOURS OF WORK .......................... 16

Normal Work Week ........................................ 1

Normal Work Pattern ...................................... 2

Work Schedules .............................................. 3

Work Notices .................................................. 4

Reporting Pay .................................................. 5

Overtime .......................................................... 6

.......... 16

.......... 16

.......... 17

.......... 18

.......... 18

.......... 18

ARTICLE SEVEN – HOLIDAYS ................................. 20

Holidays Enumerated ...................................... 1

Pay for Holidays Not Worked ......................... 2

Holiday Hours Worked ................................... 3

.......... 20

.......... 20

.......... 21

ARTICLE EIGHT – VACATIONS ............................... 22

Eligibility......................................................... 1

Length of Vacation Period .............................. 2

Vacation Allotment ......................................... 3

Vacation Hours and Pay .................................. 4

.......... 22

.......... 22

.......... 23

.......... 25

ARTICLE NINE – SUSPENSION AND

DISCHARGE CASES ........................................... 26

Justice and Dignity .......................................... 1

Union Representation ...................................... 2

.......... 26

.......... 27

ARTICLE TEN – SENIORITY ..................................... 27

Definition ........................................................ 1

Calculation of Continuous Service .................. 2

Layoff .............................................................. 3

Permanent Vacancies ...................................... 4

Temporary Vacancies ...................................... 5

Probationary Employees ................................. 6

Service with International Union..................... 7

Salaried Employees ......................................... 8

Leave of Absence ............................................ 9

.......... 27

.......... 27

.......... 28

.......... 28

.......... 29

.......... 29

.......... 30

.......... 30

.......... 30

ARTICLE ELEVEN –

ADJUSTMENT OF COMPLAINTS AND

GRIEVANCES ....................................................... 31

Purpose ............................................................ 1

Operation of Grievance Procedure .................. 2

Procedure......................................................... 3

Arbitration Procedure ...................................... 4

Suspension of Grievance Procedure ................ 5

Union Grievance Committee ........................... 6

Grievance Settlement ...................................... 7

.......... 31

.......... 31

.......... 32

.......... 33

.......... 33

.......... 34

.......... 34

Section

Access to Plant ................................................ 8 Page

.......... 35

ARTICLE TWELVE - SAFETY

AND HEALTH ...................................................... 35

General Provisions .......................................... 1

Use of Disciplinary Records............................ 2

Alcoholism and Drug Abuse ........................... 3

Safety and Health Training.............................. 4

Medical Records .............................................. 5

Occupational Health and Safety Act ............... 6

.......... 35

.......... 36

.......... 37

.......... 37

.......... 37

.......... 37

ARTICLE THIRTEEN - MANAGEMENT ................. 38

Management .................................................... 1

Qualification Levels ........................................ 2

Shift Assignment ............................................. 3

.......... 38

.......... 38

.......... 39

ARTICLE FOURTEEN – STRIKES AND

LOCKOUTS .......................................................... 39

ARTICLE FIFTEEN - PROGRAM OF INSURANCE

BENEFITS ............................................................. 39

ARTICLE SIXTEEN - RETIREMENT PLAN ............ 39

ARTICLE SEVENTEEN - LETTERS OF

UNDERSTANDING .............................................. 39

ARTICLE EIGHTEEN - TERM OF

AGREEMENT ........................................................ 40

Term ................................................................ 1

Notice .............................................................. 2

Commencement ............................................... 3

Expiration ........................................................ 4

.......... 40

.......... 40

.......... 40

.......... 40

ARTICLE NINETEEN - RIGHT OF FIRST

REFUSAL ................................................................ 41

APPENDICES A …………………….STANDARD HOURLY WAGE

SCALE OF RATES, STANDARD SKILLED

TRADE RATES AND WAGE KICKERS .............. 42

B BENEFITS PROGRAM .......................................... 44

C RETIREMENT PLAN ............................................. 46

WHEREAS Union Drawn Steel Company II LP (“Union Drawn”) is

insolvent or is in bankruptcy;

AND WHEREAS Union Drawn Steel II LP (the “Company”) has purchased

certain assets from the Trustee in Bankruptcy and from the secured creditors

of Union Drawn;

AND WHEREAS the Company has not purchased the former business of

Union Drawn or part of the former business of Union Drawn as defined in

the Employment Standards Act, R.S.O. 1990, E.14;

AND WHEREAS the Company has not purchased the former business of

Union Drawn or part of the former business of Union Drawn and is not a

successor employer within the meaning of the Labour Relations Act, R.S.O.

1990, L.2;

AND WHEREAS the Company wishes to employ the members of the

United Steel, Paper, Forestry, Rubber, Manufacturing, Energy, Allied

Industrial and Service Workers International Union (United Steelworkers),

Local 2308 (the “Union”) who were formerly employed by Union Drawn on

terms and conditions set out herein;

AND WHEREAS the Company hereby voluntarily recognizes the Union as

the exclusive collective bargaining representative of the members of the

Union in the bargaining unit as defined in this Collective agreement;

NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:

AGREEMENT

This Agreement, dated March 1, 2017, is between Union Drawn Steel II LP,

(hereinafter referred to as the “Company”); and United Steel, Paper, Forestry,

Rubber, Manufacturing, Energy, Allied Industrial and Service Workers

International Union (United Steelworkers) Local 2308 (hereinafter referred

to as the “Union”), representing the employees, as hereinafter defined, of the

Union Drawn Steel II LP, in its Plant at Hamilton, Ontario, Canada.

Except as otherwise expressly provided herein, the provisions of this

Agreement shall be effective March 1st, 2017.

WORK SHARE PROGRAM

The Union and the Company agree to remain in the existing Work Share

Program for the period they have now agreed to, plus any extensions to this

program that are granted. Both parties will cooperate in applying for any

extensions to this Work Share Program.

- 1 -

ARTICLE ONE - PURPOSE AND SCOPE

Section 1 - Purpose

It is the intent and purpose of the parties hereto to set forth herein the

agreement covering rates of pay, hours of work, and conditions of

employment to be observed between the parties hereto for the employees of

the Company in the bargaining unit of the Company set forth in Article Two

- Recognition - of this Agreement. (1)

The parties recognize that for their joint benefit, increases in wages and

benefits should be consistent with the long-term prosperity and efficiency of

the Company. (2)

The parties are concerned that the future for the Company in terms of

employment security and return on substantial capital expenditures will rest

heavily upon the ability of the parties to work co-operatively to achieve

significantly higher productivity trends than have occurred in the recent past.

The parties are acutely aware of the impact upon the Company and its

employees of the sizable penetration of the domestic steel market by foreign

producers. Thus, it is incumbent upon the parties to work co-operatively to

meet the challenge posed by principal foreign competitors in recent years. It

is also important that the parties co-operate in promoting the use of steel. (3)

The representatives of the Company and the Union shall continue to provide

each other with such advance notice as is reasonable under the circumstances

on all matters of importance in the administration of the terms of the labour

agreement, including changes or innovations affecting the relations between

the local parties. (4)

Section 2 - Observance

The Union (its officers and representatives at all levels) and all employees

are bound to observe the provisions of this Agreement. (5)

The Company (its officers and representatives at all levels) is bound to

observe the provisions of this Agreement. (6)

- 2 -

ARTICLE TWO - RECOGNITION

Section 1 - Coverage

The Union having been designated the exclusive collective bargaining

representative of the employees of the Company as defined in Section 2

below, the Company recognizes the Union as such exclusive representative.

Accordingly, the Union makes this Agreement in its capacity as the exclusive

collective bargaining representative of such employees. The provisions of

this Agreement constitute the sole procedure for the processing and

settlement of any claim by an employee or the Union of a violation by the

Company of this Agreement. As the representative of the employees, the

Union may process complaints or grievances through the complaint and

grievance procedure, including arbitration, in accordance with this

Agreement or adjust or settle the same. (7)

Section 2 - Employee Defined

The term “Employee”, as used in this Agreement, shall mean all employees

of the Company employed in and around the Company’s Plant at Hamilton,

Ontario, except salaried and office employees, foremen and those of higher

rank and those employed in a confidential capacity. (8)

Section 3 - Disputed Exclusions

Any differences which shall arise between the Company and the Union as to

whether or not any individual employee is or is not included within the term

“Employee” as defined in this Article Two shall be handled as a complaint or

grievance in accordance with the procedure set forth in Article Eleven -

Adjustment of Complaints and Grievances - of this Agreement. (9)

Section 4 - Supervisors Working

Any supervisor at the Plant shall not perform work on a job normally

performed by an employee in the bargaining unit at the Plant; provided,

however, this provision shall not be construed to prohibit supervisors from

performing the following types of

work: (10)

- 3 -

ARTICLE TWO - RECOGNITION ... cont’d

A. experimental work;

B. demonstration work performed for the purpose of instructing and

training employees;

C. work required of the supervisors by emergency conditions which if not

performed might result in interference with operations, bodily injury, or

loss or damage to material or equipment; and

D. work which, under the circumstances then existing, it would be

unreasonable to assign to a bargaining unit employee and which is

negligible in amount.

Work which is incidental to supervisory duties on a job normally performed

by a supervisor, even though similar to duties found in jobs in the bargaining

unit, shall not be affected by this provision. (11)

If a supervisor performs work in violation of this Section 4 and the employee

who otherwise would have performed this work can reasonably be identified,

the Company shall pay such employee the applicable standard hourly wage

scale rate for the time involved. (12)

Section 5 - Contracting Out

In work involving outside contractors on existing equipment and of a nature

normally done by Company’s employees, or work involving outside

contractors and Company’s employees working together on the same work,

the Company will notify the Union in advance in writing before such work is

contracted out. (13)

On such jobs as can be considered new construction, the Company will not

be bound by this Agreement and reserves the right to award work to such

contractors as may be selected by reason of their special ability to do the job.

(14)

However, in conjunction with the foregoing provisions of this Section, the

Company agrees that insofar as it is practicable given time constraints and

the ability and experience of its work force, before it contracts out any work,

Company will compare the cost of contracting out work to the cost of having

its employees perform the same work and provide written documentation of

- 4 -

ARTICLE TWO - RECOGNITION ... cont’d

the cost comparison to the Union. Where cost is the only consideration, if

the cost of having its employees perform the work is less than or equal to the

cost of contracting out the work, then the Company will offer the work to its

own employees. (15)

ARTICLE THREE - COMPANY AND UNION ACTIVITY

Section 1- Interference or Discrimination

The Company recognizes and will not interfere with the rights of its

employees to become members of the Union. There shall be no

discrimination, interference, restraint, or coercion by the Company or any of

its agents against any employee because of membership in the Union. (16)

Section 2 - Union Activity

No employee shall engage in any Union activity on the property of the

Company in any manner which shall interfere with production or engage in

Union activity on Company time. (17)

Section 3 - Intimidation or Coercion

The Union, its officers, agents and members, shall not intimidate or coerce

employees into joining the Union or continuing their membership therein.

(18)

Section 4 - Non-Discrimination

It is the continuing policy of the Company and the Union that the provisions

of this Agreement shall be applied to all employees without regard to race,

colour, creed, ethnic origin, ancestry, place of origin, citizenship, sexual

orientation, age, record of offences, marital status, same-sex partnership

status, family status, handicap or sex. The representatives of the Union and

the Company in all steps of the complaint and grievance procedure and in all

dealings between the parties shall comply with this provision. (19)

- 5 -

ARTICLE FOUR - UNION MEMBERSHIP AND CHECKOFF

Section 1 - Union Membership

Each employee who on the effective date of this Agreement is a member of

the Union in good standing and each employee who becomes a member after

that date shall, as a condition of employment, maintain his membership in the

Union. (20)

Section 2 - Checkoff and Indemnity Clause

A. The Company shall deduct Union dues including, where applicable,

initiation fees and assessments, on a bi-weekly basis, from the total earnings

of each employee covered by this agreement. The amount of dues shall be

calculated in accordance with the Union’s Constitution. (21)

B. All dues, initiation fees, and assessments shall be remitted to the

Union forthwith and in any event no later than fifteen (15) days following the

last day of the month in which the remittance was deducted. The remittance

shall be sent to the International Secretary Treasurer of the United

Steelworkers, P.O. Box 9083 Station ‘A’, Toronto, ON M5L 1K1 in such

form as shall be directed by the Union (if the collective agreement does not

have the International Union as the party, then the word “Union” should be

changed to the “International Union”) to the Company along with a

completed Dues Remittance Form R-115. A copy of the Dues Remittance

Form R-115 will also be sent to the Union office designated by the Area

Coordinator. (22)

C. The remittance and the R-115 form shall be accompanied by a statement

containing the following information: (23)

1. A list of the names of all employees from whom dues were deducted

and the amount of dues deducted.

2. A list of the names of all employees from whom no deductions have

been made and reasons.

D. The Union shall indemnify and save the Company harmless against all

claims or other forms of liability that may arise out of any actions taken

by the Company in compliance with this article. (24)

- 6 -

ARTICLE FOUR - UNION MEMBERSHIP AND CHECKOFF... cont’d

E. The Company, when preparing T-4 slips for the employees, will enter

the amount of Union dues paid to the employee during the previous year.

(25)

ARTICLE FIVE - WAGES

Section 1 - Wage Payment Policies

A. Hourly Wages

1. Each employee covered by this Agreement shall receive an hourly

wage as set forth in Appendix A. (26)

2. An employee who is temporarily assigned (movement within

a shift) to a higher hourly wage rate job will be paid at the higher

rate. An employee who is temporarily assigned (movement within a

shift) to a lower hourly wage rate job at the convenience of the

Company will be paid at the employee’s regular rate as set forth in

Appendix A. (27)

3. No basis shall exist for any employee to allege that a wage rate

inequity exists and no grievance on behalf of an employee

alleging a wage rate inequity shall be filed or processed during the

term of this Agreement. (28)

4. It is understood that the fundamental principle of the work and

wage relationship is that the employee is entitled to a fair day’s pay, i.e. the

standard hourly wage scale, in return for which the Company is entitled to a

fair day’s work. The Company will not establish performance standards not

in accordance with this fundamental principle of the work and wage

relationship. (29)

5. Employees hired starting from 1 February 2017, will be paid

sixty-five (65%) percent of the rate of the job to which they

are assigned for the first six (6) months of employment, then

paid seventy (70%) percent for the next six (6) months, then paid

seventy-five (75%) percent for the next twelve (12) months and

then eighty (80%) percent for the next twelve (12 months), except

for employees assigned to a maintenance trade or craft job will be

paid one hundred (100%) percent of the rate of the job to which

they are assigned. (30)

- 7 -

ARTICLE FIVE - WAGES ... cont’d

6. When an employee is scheduled on another job due to a work

incurred injury, he will be paid the higher of the wage rate of the job he is

working on or the employee’s regular rate. (31)

B. Shift Differential

1. For hours worked on the afternoon shift, there shall be paid a

premium rate of 55 cents per hour. For hours worked on the

night shift, there shall be paid a premium rate of 70 cents per hour. (32)

2. Shifts shall be identified as follows: (33)

A. Day shift includes all shifts scheduled to commence between 6:00

a.m. and 8:00 a.m., inclusive;

B. Afternoon shift includes all shifts scheduled to commence between

2:00 p.m. and 4:00 p.m., inclusive;

C. Night shift includes all shifts scheduled to commence between

10:00 p.m. and 12:00 midnight, inclusive.

C. Call-In Pay

When an employee is called back to work, after leaving the Company

premises, he shall be entitled to time and one-half (1 1/2) pay for hours

worked in that work day in excess of eight (8) hours, but in no case shall be

paid less than three (3) hours pay, at his standard hourly rate or the job’s

standard hourly rate, whichever is greater. (34)

D. Reporting Pay

1. An employee who is scheduled or notified to report and who

does report for work shall be provided with and assigned to a minimum of

four (4) hours of work on the job for which he was scheduled or notified to

report or, in the event such work is not available, shall be assigned or

reassigned to another job. In the event, when he reports for work, no work is

available, he shall be released from duty and credited with a reporting

allowance of four (4) times the standard hourly wage rate of the job

(including any applicable shift differential and Sunday premium) for which

he was scheduled or notified to report. When an employee who starts to

work is released from duty before he works a minimum of four (4) hours, he

- 8 -


shall be paid for the hours worked in accordance with this Section and

credited with a reporting allowance equal to the standard hourly wage rate of

the job (including any applicable shift differential and Sunday premium) for

which he was scheduled or notified to report multiplied by the unutilized

portion of four (4) hour minimum. (35)

Section 1 shall not apply in the event of the following: (36)

a. Strikes, work stoppages in connection with labour disputes, failure

of utilities beyond the control of the Company, acts of God or acts

of sabotage interfered with the work being provided; or

b. An employee is not put to work or is laid off after having been put

to work, either at his own request or due to his own fault; or

c. Management gives two (2) hours notice of change in scheduled

reporting time or that an employee need not shall promptly determine what

constitutes reasonable notice.

E. Allowance for Jury or Witness Service

An employee who is called for jury service or subpoenaed as a witness shall

be excused from work for the days on which he serves. Service, as used

herein, includes required reporting for jury or witness duty when summoned,

whether or not he is used. Such employee shall receive, for each such day of

service on which he otherwise would have worked, the difference between

report. Local Management and the Grievance Committee

the payment he received for such service in excess of $5.00 and eight times

his average straight-time hourly wage as set forth in Appendix A. Time thus

paid shall not be counted as hours worked for purposes of determining

overtime or premium pay liability. The employee will present proof that he

did serve or report as a juror or was subpoenaed and reported as a witness,

and the amount of pay, if any, received therefore. A “day” is defined as any

period between 12:01 a.m. to 12:00 midnight (or Turn starting closest

thereto). (37)

- 9 -


F. Allowance Bereavement

A three (3) day grieving period off (weekends not included) for

a death that occurs in the employee’s immediate family.

1. If there is a special relationship of care-giving or care-giver, the

employee shall discuss such with the Company and consent to this grieving

period shall not be unreasonably withheld.

2. Payment shall be eight (8) times the employee’s average

straight-time hourly earnings (as computed for jury pay).

3. Time thus paid will not be counted as hours worked for

purposes of determining overtime or premium pay liability. (38)

If an employee is on vacation and an eligible death occurs, the Company

agrees to pay the portion of the Funeral/Bereavement entitlement based on

the following conditions: (39)

1. This benefit applies on the next day following the death.

2. The days eligible for pay will be based on reporting pay days that

the employee would normally be scheduled.

3. Funeral/Bereavement entitlement will be paid only, vacation will

not be rescheduled.

G. Errors in the Application of Rates of Pay and Rates of Pay Practices

(40)

1. Errors in the application of established rates of pay or wage

payment practice, when discovered, shall be corrected promptly to

conform with the provisions of this Section.

Neither supervisors nor Committeemen shall have the authority to

commit the parties to a future course of action with respect to rates of pay

which shall be in violation of this Agreement, beyond the first such

occurrence in any single instance. (41)

- 10 -


Section 2 - Description and Classification of New or Changed Jobs

A. The August 1, 1971 Job Description and Classification Manual

(herein called the “Manual”) (supplemented by master job classification for

fabricating and manufacturing operations) agreed to by the parties is hereby

made a part of this Agreement. The description and classification of each

new or changed job shall be consistent with, and conform to, the description

and classification of jobs as agreed to in the Plant and also the appropriate

“Master Job Classification” as set forth in the August 1, 1971 Manual in

accordance with the following procedure. (42)

B.

This procedure is not to be construed or interpreted in any way as a license

for any review of job descriptions and classifications currently in effect

except as provided below: (43)

1. All new jobs, including trade or craft jobs, established on or after

August 1, 1971, shall be classified by the provisions set forth in the

Manual.

2. All jobs that are changed in job content (requirements of the job as

to training, skill, responsibility, effort or working conditions) on or

after August 1, 1971, shall be reclassified only in those factors

affected by the change, using only Section 5 of the Manual - “The

Basic Factors and Instructions for Their Application” and Section 6

of the Manual - “Conventions for Classification of Designated Jobs”

where applicable. When and if the net total of the changes in the

factors affected equals less than one full job class, a supplementary

record shall be established to maintain the job description and

classification on a current basis and to enable a subsequent

adjustment of the job description and classification for an

accumulation of small job content changes. When and if the net

total of the changes in the factors affected, or the accumulation of

such changes, equals a net total of one full job class or more, a new

job description and classification for the job shall be established in

accordance with Sub-paragraph 1 above.

C. Except as otherwise provided herein, the job description and

classification for each job in effect as of the date of this Agreement and of

those hereafter agreed upon shall continue in effect

unless: (44)

- 11 -


1. Management changes the job content (requirements of the job as to

training, skill, responsibility, effort, and working conditions) to the

extent of one full job class or more;

2. The job is terminated or not occupied during a period of one year; or

3. The description and classification are changed in accordance with

mutual agreement of officially designated representatives of the

Company and the Union.

D. When, and if, from time to time the Company, at its discretion,

establishes a new job or changes the job content (requirements of the job as

to training, skill, responsibility, effort, and working conditions) of an existing

job to the extent of one full job class or more, a new job description and

classification for the new or changed job shall be established in accordance

with the following procedure: (45)

1. Management will develop a description and classification of the job

in accordance with the provisions of the Manual.

2. The proposed description and classification will be submitted to the

Grievance Committee for approval, and the standard hourly wage

scale rate for the job class to which the job is thus assigned shall

apply in accordance with the provisions of

Section 1 of this Article Five. At the same time copies of the proposed

description and classification shall be sent to a designated representative of

the International Union. If the job involves new-type facilities or a new-type

job, special designation of this fact shall be made.

3. The Grievance Committee and Management shall discuss and

determine the accuracy of the job description.

4. If Management and the Grievance Committee are unable to agree

upon the description and classification, Management shall install the

proposed classification and the standard hourly wage scale rate for

the job class to which the job is thus assigned shall apply. The

employee or employees affected, or the Grievance Committee shall

be exclusively responsible for the filing of grievances and may, at

any time within 30 days from the date of the installation, file a

- 12 -


grievance with Plant Management alleging that the job is

improperly described and/or classified under the provisions of the

Manual.

Thereupon the Grievance Committee and Management shall prepare and

mutually sign a stipulation setting forth the factors and factor codings which

are in dispute. Thereafter such complaint shall be referred by the respective

parties to their Step Three representatives for further consideration. In the

event the Step Three representatives are unable to agree on the description

and classification within thirty (30) days, they shall prepare and mutually

sign a stipulation (which may amend the stipulation set forth by the

Grievance Committee and Management) setting forth the factors and factor

codings which are in dispute, copy of which shall be sent to a designated

representative of Management and the aforementioned representative of the

International Union.

5. Upon request of either party’s Step Three representative the matter

may be referred to the aforementioned designated representative of the

International Union or a designated representative of Management,

respectively, who may request that the proposed description and

classification be submitted to them for their review and resolution. In the

event either of said representatives requests such review they shall meet for

this purpose and shall, within sixty (60) days, advise the Step Three

representatives of their agreement or failure to reach agreement.

6. If said representatives fail to reach agreement within the sixty (60)

day period, the Union’s International Representative may within fifteen (15)

days thereafter, request that the issues in dispute be submitted to

mediation/arbitration. If submitted to mediation/arbitration the issues shall

be limited to the factors stipulated at that time by the respective Step Three

representatives as being in dispute and the decision shall be effective as the

date when the new job was established or the change or changes installed.

7. In the event the parties fail to agree as provided and no request for

review or mediation/arbitration is made within the time provided, the

classification as prepared by the Company shall be deemed to be approved.

E. In the event Management does not develop a new job description and

classification, the employee or employees affected or the Grievance

Committee may, if initiated promptly, process a complaint under the

- 13 -


complaint and grievance procedure of this Agreement requesting that a job

description and classification be developed and installed in accordance with

the provisions of the Manual and the applicable provisions of this Section 6.

The resulting classification shall be effective as of the date when the new job

was established or the change or changes initiated. (46)

Section 3 - Application of the Standard Hourly Wage Scales

The standard hourly wage scale rate for each job shall be as set forth in

Appendix A. (47)

A. A schedule of trade or craft rates and rates applicable to multiple-rated

jobs, containing: (48)

1. A standard rate equal to the standard hourly wage scale for the

respective job class of the job;

2. An intermediate at a level of two job classes below the standard

rate; and

3. A starting rate at a level four job classes below the standard rate

shall be established for each multiple-rated job and for each of the following

repair and maintenance trade or craft jobs:

Maintenance Leader

Machinist

Electrician

B. The Company and the Union will agree on a schedule of apprentice

rates. Such agreement shall remain in effect unless and until modified

by local written agreement signed by Management and the Chairman of

the Grievance Committee. (49)

Section 4 - Production and Maintenance Jobs

The established rate of pay for each production or maintenance job, other

than a trade or craft or multiple-rated job or apprentice job as defined in

Section 3 of this Article Five, shall apply to any employee during such time

as the employee is required to perform such job. (50)

- 14 -


Section 5 - Trade, Craft or Multiple-Rated Jobs

The established starting rate, intermediate rate, or standard rate of pay for a

trade or craft job or multiple-rated jobs, defined in Sub-paragraph A of

Section 3 of this Article Five, shall apply to each employee during such time

as the employee is assigned to the respective rate classification, in

accordance with the applicable provision of the August 1, 1971 Manual and

as identified in Section 6 of this Article Five. (51)

Section 6 - Learner Jobs

The Company may continue learner jobs where such jobs are now in

existence and may establish additional learner jobs where the jobs to

be learned are classified in Job Classes Six to Nine inclusive. (52)

Learner jobs shall not be established where the job to be learned is: (53)

A. Classified in Code A of Factor 2;

B. A “helper” job; and

C. Filled by an employee who formerly worked on a bonafide “helper” job

or on a job that furnished directly related training for such job.

If any dispute shall arise between the Company and the Union as to whether

or not additional learner jobs have been established in compliance with the

provisions of this Paragraph, such dispute may be initiated as a complaint.

Learner jobs are not to be described or classified, but shall be assigned to a

job class four job classes below the job class of the job being learned when

bidding to the same or lower rated job. When bidding to a higher rated job,

the Learner job will be two job classes below the job class of the job being

learned. An employee transferred from another job to a learner job shall be

paid the learner job class rate. An employee shall be assigned to a learner

job only until he can perform satisfactorily the job for which he is being

trained and in no event for more than 780 hours of actual work. (54)

Section 7 - Performance Standards

The Company may establish performance standards provided they

are fair and reasonable. (55)

- 15 -


Section 8 - Cost-of-Living Adjustment

A. For purposes of this Section 9: (56)

1. “Consumer Price Index” refers to the “Consumer Price Index for

Canada (1971=100)” published by Statistics Canada.

2. “Consumer Price Index Base” refers to “Consumer Price Index” for

the month of __________ published by Statistics Canada.

3. “Adjustment Dates” are

4. “Change in the Consumer Price Index” is defined as the difference

between a) the “Consumer Price Index Base” and b) the “Consumer

Price Index” for the second Calendar month next preceding the

month in which the applicable Adjustment Date falls.

5. “Cost-of-Living Adjustment” is calculated as below and, except as

is provided in D, will be payable for the three-month period commencing

with the Adjustment Date.

B. Effective on each Adjustment Date, a Cost-of-Living Adjustment equal

to per hour for each full _____ of a point change in the consumer Price

Index shall become payable, except as noted in E, for all hours actually

worked and for any reporting allowance credited before the next

Adjustment Date. However, such Adjustment shall be reduced by an

amount equal to the sum of all prior Adjustments, if any, which shall

have been included in the Standard Hourly Wage Scale Rates. (57)

C. Until included in the rate pursuant to the provisions of D, the Cost-

of-Living Adjustment shall be an “add-on” and shall not be part of the

employee’s Standard Hourly Wage Scale Rate. (58)

Until so included in the rates, such Adjustment shall be payable only for

hours actually worked and for reporting allowance and shall be included in

the calculation of overtime premium but shall not be part of the employee’s

pay for any other purpose and shall be used in the calculation of any other

pay, allowance, or benefit. (59)

- 16 -


D. Annual Cost-of-Living Roll-In

In order that the annual rise in the Cost-of-Living Adjustment may

be fully reflected in the wage scale, effective _____ an Amount

equal to the amount of the Cost-of-Living Adjustment then

payable and in effect shall be included in the Standard Hourly

Wage Scale Rates. Such inclusion shall be treated for all purposes,

except as provided in the Pension Agreement, as a general wage

increase commencing on each of said dates. (60)

E. Should the Consumer Price Index, in its present form and on the same

basis as the last Index published prior to _____, become unavailable, the

parties shall attempt to adjust this, Section 9 or, if agreement is not reached,

request Statistics Canada to provide the appropriate conversion or adjustment

which shall be applicable as of the appropriate adjustment date and

thereafter. The purpose of such conversion shall be to produce as nearly as

possible the same result as would have been achieved using the Index in its

present form. (61)

F. If the Consumer Price Index falls below the Consumer Price Index Base,

there shall be no Cost-of-Living Adjustment. (62)

G. For the life of this Contract, Cost-of-Living Adjustments as per this

Section 9 will not be recognized. (63)

ARTICLE SIX - HOURS OF WORK

Section 1 - Normal Work Week

A. As of the effective date of this Agreement, the normal work week shall

be forty (40) hours comprised of consecutive work days. (64)

B. Whenever the normal work week is scheduled from Monday to Friday,

the first night shift of the week will commence at 11:00 p.m. Sunday

night. (65)

C.

Section 2 - Normal Work Pattern

The normal work pattern shall be consecutive workdays beginning on the

first of any 7-consecutive-day period. The 7-consecutive-day period is a

- 17 -

ARTICLE SIX - HOURS OF WORK ... cont’d

period of 168 consecutive hours and may begin on any day of the calendar

week and extend into the next calendar week. On shift changes, the 168

consecutive hours may become 152 consecutive hours depending upon the

change in the shift. (66)

Section 3 - Work Schedules

A. The hours of work and the work schedule shall be determined

exclusively by the Company. Determination of starting times and work

schedules shall be made by the Company and may be changed by the

Company from time to time to suit varying conditions of the business. (67)

B. For the advance information of employees, a one-week work schedules

shall be posted. Such schedules shall be posted no later than Wednesday

at 12:00 noon, one week preceding the calendar week in which the

schedule becomes effective. However, for weeks containing a holiday,

as defined in Article Seven-Holidays, the schedule for the weeks

involved shall be posted no later than Thursday at 12:00 noon. (68)

C. Changes in work schedules made after such postings shall be explained

at the earliest practical time to the employees affected and the

appropriate Union representative, in addition to the giving of such notice

as required in Section 4, below. (69)

D. No changes in work schedules shall be made after Thursday 12:00 noon

for the following week’s schedule, only except in case of breakdowns,

customer demands or other conditions beyond the control of management.

Employees will be notified of such changes. (70)

E. When a job is increased from 1 to 2 shifts, or 2 to 3 shifts for the first

week of such increase, the man or men scheduled on such job in the prior

week will be scheduled as normal and the transferred employee will fill the

open shift. After the first week of such increase, scheduling will be

according to normal scheduling practices. (71)

F. An employee with physical restrictions cannot displace an incumbent

under the weekly scheduling practices. (72)

- 18 -


Section 4 - Work Notices

Management will establish a procedure where such does not already exist,

affording any employee whose last scheduled turn ends prior to the posting

of his schedule for the following week, an opportunity to obtain information

relating to his next scheduled turn. This procedure will also be applicable

with respect to employees returning from vacation. (73)

A. Employees on vacation are responsible to determine and to report to

work for the job and shift they are scheduled on after vacation. (74)

B. However, in the case where an employee already on vacation has

had an unexpected schedule change away from his previously scheduled job

and shift, he will be notified of such change by the Company as follows: (75)

1. The Company will make one phone call to the number provided by

the employee.

2. If the Company is unable to contact the employee directly or leave a

voice mail message, it is still the employee’s responsibility to

determine and report for his scheduled job and shift.

Section 5 - Reporting Pay

Any regular employee who is not advised of a layoff and the reason for such

layoff is within the control of Management, who reports for work shall

receive four (4) hours of work or wages in lieu thereof. (76)

Section 6 - Overtime A. The following shall provide the basis of calculating overtime or other

premium compensation. (77)

1. The payroll week shall start with the first shift nearest Midnight

Sunday and run for seven consecutive days.

2. The workday for purposes of this subsection is the 24-hour period

beginning with the time the employee begins work.

- 19 -


3. Time and one-half the regular rate (as such regular rate is calculated

for these purposes on the date of this Agreement) shall be paid for all hours

worked in excess of forty (40) in any one payroll week.

4. Time and one-half (1 1/2) the regular rate shall be paid for all hours

worked in excess of eight (8) during one day, unless the employee is

scheduled for a ten (10) hour shift.

5. Double (2) the regular rate will be paid for all hours worked on a

Sunday. Exclusions, for which time and one-half (1 1/2) the regular rate will

be paid for all hours worked on a Sunday are:

A. If the plant is working a 4-shift schedule.

B. If the plant is working a 6-day schedule and they work a

Sunday shift in lieu of a Saturday 3-11 shift.

6. If an employee is requested by the Company to work a double back

shift, then he must be paid time and one-half (1 1/2) if the employee chooses

to work the 6th

day.

7. Work performed by an employee in excess of eight (8) hours in any

twenty-four (24) period will not be paid for at time and one-half (1 1/2) when

a change is made in an employee’s working hours for either his work week

or work day at his own request.

B. Payment of overtime shall not be duplicated for the same hours

worked. To the extent that hours worked are compensated for at overtime or

premium rates under one provision of this Agreement, they shall not be

counted as hours worked in determining overtime or premium pay under the

same or any other provision of the Agreement, excepting as such is

especially provided for in the payment of holiday hours, set forth in the

Article Seven (Holidays). (78)

- 20 -

ARTICLE SEVEN - HOLIDAYS

Section 1 - Holidays Enumerated

Whenever used in this Agreement, the term “holiday” means one of the

following days: (79)

January 1st

Good Friday

Victoria Day

Canada Day

Civic Holiday

Labour Day

Thanksgiving Day

Christmas Day

The Day After Christmas Day

Four “floating” holidays to be used at a mutually agreed upon date around

Christmas and New Year.

NOTE: If the July 1st Canada Day holiday falls on a Sunday, Tuesday or

Wednesday, the holiday will be observed on the nearest Monday. If the

Canada Day holiday falls on a Thursday or Saturday, the holiday will be

observed on the nearest Friday.

Section 2 - Pay for Holidays Not Worked

Eligible employees shall receive eight (8) hours straight time pay (see

Appendix A) for holidays not worked. (80)

All holidays will be observed as described unless otherwise mutually agreed

upon in writing between the President of the Local Union and the Vice

President - Operations or their representatives. (81)

A holiday shall be deemed to begin at 12:01 a.m. of the holiday or turn

starting closest thereto, and shall end 24 hours later. (82)

As used in this Article Seven, this section does not apply to an employee

who: (83)

A. Fails to work his scheduled regular day of work preceding or his

scheduled regular day of work following a public holiday, unless he has

- 21 -

ARTICLE SEVEN - HOLIDAYS... cont’d

failed so to work his shift or part of his shift because of justifiable

sickness or justifiable good cause;

B. Has agreed to work on a public holiday and who, without

reasonable cause, fails to report for and perform the work; or

C. Is employed under an arrangement whereby the employee may elect to

work or not when requested so to do.

Section 3 - Holiday Hours Worked

A. All hours worked by an employee on any of the holidays specified in

Section 1, overtime shall be paid at the rate of double time and one-half

his standard hourly wage rate. (84)

In no case shall an eligible employee receive less than the benefit of the paid

holiday to the extent that the number of hours worked by him on the holiday

is less than eight (8). (85)

B. For the purpose of determining whether or not the employee has

worked in excess of 40 hours in the work week in which a holiday occurs,

the holiday shall be considered as an eight-hour day worked whether or not

work is performed, excepting for those employees who fail to perform

scheduled work on such holiday. (86)

C. Payment of overtime or premium rates shall not be duplicated for

The same hours worked, but the higher of the applicable rates shall be

paid. To the extent that hours worked are compensated for at overtime or

premium rates under one provision of this Agreement, they shall not be

counted as hours worked in determining overtime or premium pay under the

same or any other provision of the Agreement, except as provided in the

immediately preceding paragraph B. (87)

D. If an eligible employee who is scheduled to work on any such

holiday, fails to report or perform his scheduled or assigned work, he shall

become ineligible for pay for the unworked holiday unless he has failed to

report or perform such work because of verified personal illness (verified in

writing by a physician), death in the immediate family or because of similar

verified good cause. (88)

- 22 -

ARTICLE SEVEN - HOLIDAYS... cont’d

E. If any of the holidays specified in Section 1 fall during an eligible

employee’s scheduled vacation, the eligible employee shall have the option

of receiving either (a) eight (8) hours straight time pay for the holiday not

worked or (b) rescheduling this holiday at a time that is convenient for both

the employee and the Company. This rescheduled holiday will, so far as

practicable, be granted at a time most desired by the employee (longer

service employees being given preference as to choice); but the final right to

schedule this rescheduled holiday is exclusively reserved to the Company in

order to ensure the orderly operation of the Plant. The rescheduled holiday

will be provided to the eligible employee before the eligible employee’s next

annual vacation. (89)

ARTICLE EIGHT - VACATIONS

Section 1 - Eligibility

A. To be eligible for a vacation in any calendar year during the term of this

Agreement, the employee must: (90)

1. Have one year or more of continuous service; and

2. Not have been absent from work for six (6) consecutive months or

more in the preceding calendar year.

Section 2 - Length of Vacation Period

A. For the term of this Agreement only, Union Drawn Steel II Ltd and

former Union Drawn Steel Company Limited employees will be eligible

for vacation to be determined as follows: (91)

- 23 -

ARTICLE EIGHT - VACATIONS ... cont’d

Weeks of Vacation

Combined Union Drawn Steel II Limited

Years of Service and Previous Years of

Service Under the Former Union Drawn

Steel Company Limited

2

3

4

5

6

1 but less than 6 years




23 years and up

(Effective March 1, 1999)

B. A week of vacation shall consist of 7 consecutive days and

vacations must occur in the calendar year in which eligibility occurs. In

extenuating circumstances vacation times may be carried over into the next

year, to be taken at the first available opportunity. The Company will act in a

reasonable manner. (92)

Section 3 - Vacation Allotment

A. The following procedure will be used to schedule employee’s vacation

allotment: (93)

1. On or promptly after November 1 of each year, each employee

entitled to, or expected to become entitled to vacation time off in the

following year, will be contacted by a Company representative, in order of

the employee’s seniority, to determine vacation allotment. This procedure

will continue until all employees are contacted.

2. The employees must be prepared to make their choice as soon as

possible, with the intent to have all vacations scheduled by January 1 of the

year the vacation is to be taken. It is understood by both parties, that all

involved must participate to achieve this deadline.

B. Notice will be given to an employee at least 15 days in advance of

the date his vacation period is scheduled to start, but in any event not later

than January 1 of the year in which the vacation is to be taken. (94)

- 24 -


C. Vacations will, so far as practicable, be granted at times most

desired by employees (longer service employees being given preference as to

choice); but the final right to allot vacation periods and to change such

allotments is exclusively reserved to the company in order to ensure the

orderly operation of the Plant. (95)

D Any employee absent from work because of layoff, disability or leave of

absence at the time employees are requested to specify the vacation periods

they desire and who has not previously requested and been allotted a

vacation period for the calendar year, may be notified by Management that a

period is being allotted as his vacation period, but that he has the right within

14 days after such notice is sent, that he desires some other vacation period,

he shall be entitled to have his vacation scheduled in accordance with

Subsection C above. (96)

E If an employee is on layoff from the Plant at any time before the

beginning of his scheduled vacation hereunder, he may request to have his

vacation start at any time during such layoff and if Management agrees to

grant his request, it shall have the right to set the appropriate conditions

under which it grants his request. (97)

F. Vacations may be scheduled throughout the calendar year. The

number of employees off per week will be four (4) for the length of this

current contract only. For all other vacation allotment, the Company reserves

the exclusive right to determine the number of people off per week, as per

Article Eight, Section 3C. (98)

G. The Company may, with the consent of the employee, pay him vacation

allowance, in lieu of time off vacation, as outlined in Letter of Understanding

No. 21. (99)

H. Any payment of vacation allowance shall not require the Company to

reschedule the vacation of any other employee. (100)

I. When allocated vacation time becomes available due to movement, pay-

in-lieu, death, or cancellation, it becomes available to anybody on a seniority

basis for movement. (101)

- 25 -


J. Vacations shall be scheduled in a single period of consecutive

weeks, provided, however, that in the event the orderly operations of the

Plant require vacations of two or more weeks may be scheduled in two

periods, neither of which may be less than one week. With the consent of the

employee, vacation may be scheduled in any number of periods, none of

which may be less than one week. (102)

K. The Company and the Union shall agree to a temporary shutdown for

vacation purposes as outlined in Letter of Understanding

No. 20. (103)

L. The calendar week containing New Year’s Day may be taken as a

week of vacation for either the year preceding New Year’s Day or the

year in which New Year’s Day falls except when new Year’s Day falls on

Sunday, provided such vacation week has been scheduled as vacation in

accordance with this Article Eight. If the Company in its sole discretion

schedules a shutdown of any operation during the calendar week containing

Christmas Day, any employee who is not scheduled to work due to the

shutdown in such week and who has completed his vacation entitlement for

that year may elect to reschedule a week of vacation for which the employee

has qualified and will be entitled in the following calendar year into the

shutdown week; provided, however, that vacation pay for such vacation

week, calculated as though the week were scheduled and taken in the next

following year will be paid on the regular pay day for the pay period in

which the shutdown vacation falls; and provided further that no vacation pay

for a vacation rescheduled hereunder will be paid to an employee who quits,

retires, dies or is discharged prior to January 1 of the year from which the

shutdown vacation was rescheduled, except as may be required by law. (104)

Section 4 - Vacation Hours and Pay

A. Pay for each vacation week shall be the greater of two (2%)

percent of employment income (as reported in Box 14 of the T-4) or forty

(40) times the employee’s current base rate. (105)

B. Each employee granted vacation will be paid at the time vacation is

taken. (106)

- 26 -


C. No employee shall be entitled to a vacation or vacation pay after

resignation, retirement, discharge or death, except as may be required by

law. (107)

ARTICLE NINE - SUSPENSION AND DISCHARGE CASES

Section 1 - Justice and Dignity

An employee whom the Company suspends, discharges and/or terminates

shall be retained at or returned to active work until any complaint contesting

such suspension or discharge is finally resolved through the Complaint and

Grievance Procedure. (108)

If the employee does not file a complaint within five (5) calendar days, the

suspension or discharge shall become final. (109)

However, it is understood the employee may be suspended, discharged

and/or terminated (without pay) until the resolution of the complaint

protesting the suspension or discharge, if his alleged cause for suspension or

discharge presents a danger to the safety of employees or equipment in the

Plant due to fighting, theft, consumption of alcohol, drugs or other similar

substances, or for deliberate attempted or actual damage to Company

property, or disobeying supervisory orders which are not pertinent to the

Ontario Health and Safety Act or Regulations and he has been afforded

Union representation prior to such suspension or discharge. (110)

In cases of suspension due to absenteeism, if upheld by the resolution of the

complaint procedure, the employee’s progressive discipline will be in the

form of “on paper only” (not actual time off without pay) suspensions, except

for the final loss of employment. (111)

Complaints involving an employee who is retained at work under this

provision will be handled in the Expedited Arbitration Procedure (Section 49

of the Ontario Labour Relations Act) unless the Company and the Union

mutually agree otherwise. If the Arbitrator upholds the suspension or

discharge of an employee retained at work, the penalty shall be instituted

after the receipt of the Arbitration Award. (112)

- 27 -

ARTICLE NINE - SUSPENSION AND DISCHARGE CASES ... cont’d

Section 2 - Union Representation

Any employee who is summoned to meet in the office of a supervisor for the

purpose of discussing possible disciplinary action against such employee

shall be entitled to be accompanied by his Grievance Committeeman or his

Steward, if he requests such representation, provided such representation is

available. (113)

ARTICLE TEN - SENIORITY

Section 1 - Definition

Seniority is defined as the length of an employee’s continuous service with

the Company and shall be expressed as the date on which continuous service

started, i.e., the date first employed by the Company or the date of re-

employment after the last termination of seniority. The determination of

such continuous service is subject to the mutual understanding and

agreement that the personnel records of the Company are accepted as being

correct, and further subject to the following subsections. (114)

Section 2 - Calculation of Continuous Service

A. The continuous service record of an employee shall be considered

to be broken so that no prior period or periods of employment shall be

counted and his seniority shall cease upon: (115)

1. Voluntary quit

2. Discharge/termination

3. Failure to return to work upon expiration of an approved leave of

absence where due notice to return has been given by the Company.

4. Absence due to either layoff or disability or both which continues for

more than two (2) years; employees injured while on duty shall

accumulate credit for continuous service until the termination of the

period for which statutory Workers’ Compensation is payable, plus

30 days. This paragraph does not pertain to probationary

employees.

- 28 -

ARTICLE TEN - SENIORITY ... cont’d

5. Unauthorized absence from scheduled work for more than three (3)

consecutive working days, unless excused by the Company by

reason of illness or other disability or other reasonable cause. The

Company shall give due notice of the intention to terminate the

employee.

6. Failure to report for and begin work within seven (7) days upon

receipt of notice of recall from layoff.

B. Due notice for the purposes described in Paragraph “A” above shall be:

(116)

1. Calling the telephone number on record furnished by the employee.

2. If unable to reach the employee by phone or if he fails to report as

scheduled, the Company shall send a registered letter to his last

known address.

3. If the employee fails to report for work or to report his availability

for work within seven (7) calendar days after the mailing of the

letter, he shall be terminated unless an excuse satisfactory to the

Company is given before the end of the seven (7) day period.

Satisfactory excuses shall include an opportunity to give reasonable

termination notice to his interim employer.

Section 3 - Layoff

In the laying off of employees, a reduction in force or in the recall of

employees after layoff, if the employees are equally qualified to do the

available work, the employee with the least seniority will be reduced or laid

off first and the employee with the longest seniority will be recalled first.

(117)

Section 4 - Permanent Vacancies

A. A notice will be posted for seventy-two (72) working hours when

new jobs or vacancies become open. Seniority will be considered for

purposes of promotion where employees are relatively equal with respect to

their ability to do the work required in a satisfactory manner. If the

- 29 -


employee does not display satisfactory progress during the first 780 hours on

the job, he will be returned to his former job. (118)

B. Any unfilled permanent postings will be assigned to the most junior non-

probationary labourer, or if none available, the Company will assign a

probationary labourer. (119)

C. Applicants for the permanent job of Maintenance Leader must have a

Provincial Electrician’s license. (120)

D. Applicants for the permanent job of Metallurgical Laboratory Helper

must complete a certificate course in metallurgy at Mohawk College or

McMaster University. The Company will pay tuition and book costs, if

applicant passes each year. (121)

Section 5 - Temporary Vacancies

When it is necessary to fill a temporary vacancy of more than four (4)

consecutive weeks duration and the employees are equally qualified to do the

work, the employee with more seniority will fill the

vacancy. (122)

Section 6 - Probationary Employees

New employees and those hired after a break in continuity of service will be

regarded as probationary employees for the first one thousand and forty

(1040) consecutive hours of actual work and will receive no continuous

service credit during such period. Probationary employees may file and

process grievances under this Agreement, but may be laid off or discharged

as exclusively determined by Management, provided that this will not be

used for purposes of discrimination because of race, colour, religious creed,

national origin or sex or because of membership in the Union. Probationary

employees continued in the service of the Company subsequent to the date of

this Agreement upon the completion of the first one thousand and forty

(1040) consecutive hours of actual work shall receive full continuous service

credit, including department seniority, from the date of original hiring. (123)

- 30 -


Section 7 - Service with International Union

Leaves of absence without pay for the purpose of accepting positions with

the International Union shall be available to a reasonable number of

employees. Adequate notice of intent to apply for leave shall be afforded

Management to enable provision to be made to fill the job to be vacated.

Such leaves of absence shall be for a period not in excess of two years unless

extended by mutual agreement. (124)

Section 8 - Salaried Employees

Employees who are promoted to a salaried rank outside of the bargaining

unit who Management decides to place in a position within the bargaining

unit, shall be deemed to have lost no seniority by virtue of their salaried

position for the first twelve (12) months. The Company will reimburse the

Union for dues payable while such employee was in a salaried position. (125)

The above provisions of this Section 8 may be modified by mutual

agreement in writing, which must be signed by the Vice President/General

Manager and the President of the Local Union. (126)

Section 9 - Leave of Absence

A. Application

Application for leave of absence shall be made in writing to the Plant

Manager with final authorization being granted by written permission of the

Vice President/General Manager. (127)

B. Time Limits

No leave of absence shall be granted for a period in excess of ninety (90)

days. With justifiable reason an application for extension may be made in

writing to the President, no later

than fifteen (15) days prior to the expiration of the original leave of absence

and disposition of such application shall be made in writing by the President,

prior to expiration of the original leave of absence. No consideration shall be

given beyond one (1) extension. (128)

- 31 -


C. Restrictions

Reservation is made by the Company to refuse to grant leave of absence if

the normal operations of the Company are impaired through granting of such

leave of absence. Leave of absence shall not be granted for the purpose of

becoming self-employed or accepting other employment. The Company will

not unreasonably deny requests. (129)

D. Union Conventions

The Company will grant leave of absence without pay or loss of seniority to

employees to attend Union conventions and conferences, and approved

Union education programs of four (4) weeks or less, it being understood that

this privilege will be limited to not more than two (2) employees at any time.

(130)

E. Union Business

The Company will grant leaves of absence for legitimate Union business

provided it is approved by the Union President and does not adversely affect

the operation of the Plant. (131)

ARTICLE ELEVEN - ADJUSTMENT OF COMPLAINTS

AND GRIEVANCES

Section 1 - Purpose

The purpose of this Section is to provide an orderly procedure for the

discussion of any request or complaint and to establish procedures for the

processing and settlement of grievances as hereinafter defined. (132)

Section 2 - Operation of Grievance Procedure

Should any differences arise between the Company and the Union as to the

meaning and application of this Agreement or as to any question relating to

the wages, hours or other conditions of employment of any employee, there

shall not be any suspension of work on account of such differences but an

earnest effort shall be made to settle them promptly in accordance with the

following procedure in the manner and order hereinafter set forth. (133)

- 32 -


AND GRIEVANCES ... cont’d

Section 3 - Procedure

A. Step One: The grievance procedure shall be as follows: within ten

(10) working days after the protested occurrence or event, any employee who

believes that he has a justifiable request or complaint shall discuss the

request or complaint with his Supervisor, with or without the Grievance

Committeeman being present, as he may elect, in an attempt to settle the

request or complaint. However, any such employee may instead, if he so

desires report the matter directly to his Union Representative and in such

event, the Union Representative, if he believes the request or complaint

merits discussion, shall take it up with the employee’s Supervisor in a sincere

effort to resolve the problem. The employee involved may be present in such

discussion if he so desires. (134)

B. Step Two: Those grievances not resolved at Step One may be

referred to Step Two. Within five (5) working days after receipt of the

Supervisor’s Step One response, the Union President or Grievance person

shall submit a written grievance to the Plant Manager. Within ten (10)

working days, the Chairman of the Grievance Committee, or his designee,

and the Plant Manager, or his designee, will meet in a sincere effort to

resolve the complaint or grievance. The Vice President/General Manager, or

his designee, shall answer the grievance within ten (10) working days.

(135)

C. Step Three: In the event the grievance is not resolved at Step Two, it

may be appealed to Step Three. Within ten (10) working days after receipt of

the Plant Manager’s second step response, the Union President, the Union

International Representative, or his designee, two members of the Grievance

Committee, the Company President or the Vice President/General Manager,

or his designee, and the Plant Manager, or his designee, shall meet to discuss

the grievance. The Company shall mail its answer to the Union within ten

(10) working days after the Step Three meeting. (136)

D. Mediation (and all other references) (137)

E. Step Four: Arbitration. (138)

- 33 -

F. Company Grievances: The Company can invoke the complaint and

grievance procedure by filing with the Chairman of the Grievance

Committee in Step Two. (139)



Section 4 - Arbitration Procedure

A. In the event the dispute shall not have been satisfactorily settled in Step

Three, the grievance may be referred to an impartial arbitrator to be

mutually agreed upon by the parties hereto, such appeal to be taken

within thirty (30) working days after receipt by the Union of the

Company’s answer in Step Three. If, after fifteen (15) working days

following appeal, the parties fail to agree upon an arbitrator, the

selection shall be made by the applicable Section of the Ontario Labour

Relations Act (OLRA). (140)

B. The conduct of hearings and other procedures having to do with

arbitration of the dispute shall follow the procedures set out herein or as

provided by the OLRA. (141)

C. The arbitrator shall have jurisdiction and authority to interpret, apply, or

determine compliance with the provisions of the Agreement relating to

the wages, hours of work, and other conditions of employment set forth

in the Agreement, together with those agreements which are, or may

hereafter be, in effect in the Plant insofar as shall be necessary to the

determination of such grievances arising hereunder; but the arbitrator

shall not have jurisdiction or authority to add to, detract from, or alter in

any way the provisions of this Agreement or supplements thereunder.

(142)

D. This award of the arbitrator shall be final and binding upon the

Company, the Union, and the employees. All expenses incurred as a result

of the arbitration shall be borne equally by the Company and the Union.

(143)

Section 5 - Suspension of Grievance Procedure

If this Agreement is violated by the occurrence of a strike, slowdown, work

stoppage, or interruption or impending of work in any department or sub-

division, no grievance shall be discussed or processed for the employees

directly involved in the violation while such violation continues. The Union

- 34 -

will proceed immediately to get the concerned employees in compliance with

this Agreement. (144)



Section 6 - Union Grievance Committee

A. Grievance Committee

A Grievance Committee shall be established not to exceed three (3)

employees. The Grievance Committee, as such as designated to the

Company in writing by the Union, shall attend meetings to discuss

grievances heard in the Third Step of the Grievance Procedure and other

appropriate labour-management meetings called by the parties. (145)

B. Grievance Man

Grievance men may be designated to the Company to represent employees,

serving as the Union representative for any grievance. From such grievance

men, a single grievance man shall be designated as Chairman to represent

employees in the Second Step of the Grievance Procedure. Grievance men

shall serve as the exclusive Union representative for the processing of any

grievance under their jurisdiction in Step One of the grievance procedure. In

addition, the grievance men may participate in other appropriate labour-

management meetings called by the parties. (146)

C. Grievance Activities

Grievance Committee men (and Grievance men when they are performing

the duties of a committee member) will be afforded time off with pay, for up

to the first hour only, for the time spent at Steps One and Two of the

Grievance Procedure, where the Union and the Company are meeting and

where notice has been given and permission granted by the Company. Letter

of Understanding No. 8 further defines payment for grievance activities.

(147)

Section 7 - Grievance Settlement

Settlement of grievances, including those of an arbitrator, may or may not be

retroactive as the equities of particular cases may require, but the following

limitations shall be observed in any case where such settlement is retroactive.

- 35 -

(148)



A. The effective date for adjustment of grievances relating

to:

2. Discharge and disciplinary cases - shall be the first date the

discharge or discipline became effective. (149)

3. Rates of pay, including overtime, shift premium, reporting time,

vacations, and holidays - shall be the date of the occurrence or non-

occurrence of the event upon which the grievance is based.

4. Continuation of Life Insurance Policy until grievance arbitration

process completed.

B. The effective date for adjustment of grievances involving matters other

than those referred to in Paragraph A above shall be no earlier than the

date the grievance was first presented in written form. (150)

Section 8 - Access to Plant

The representatives of the Union who customarily handle grievances in Step

Two of the Grievance Procedure shall have access to the Plant, subject to the

established rules of the Plant, at reasonable times to investigate grievances

with which they are concerned. (151)

ARTICLE TWELVE - SAFETY AND HEALTH

Section 1 - General Provisions

The Company shall make reasonable provisions for the safety and health of

its employees at the Plant during the hours of their employment. (152)

An employee who, as a result of an industrial accident, is unable to return to

his assigned job for the balance of the shift on which he was injured will be

paid for any wages lost on that shift. (153)

- 36 -

Protective devices, wearing apparel, and other equipment necessary to

properly protect employees from injury shall be provided by the Company in

accordance with practices now prevailing in the Plant or as such practices

may be improved from time to time by the Company. Goggles; gas masks;

face shields; respirators; special purpose gloves; fireproof, waterproof or acid

ARTICLE TWELVE – SAFETY AND HEALTH ... cont’d

proof protective clothing when necessary and required shall be provided by

the Company without cost, except that the Company may assess a fair charge

to cover loss or willful destruction thereof by the employees. Where any

such equipment or clothing is now provided, the present practice concerning

charge for loss or willful destruction by the employee shall continue. The

Company will add a portable defibrillator, providing costs for

certification/training and compliance are reasonable. (154)

When the Company introduces new personal protective apparel or extends

the use of protective apparel to new areas or issues new rules relating to the

use of protective apparel, the matter will be discussed with the members of

the Joint Safety and Health Committee in advance with the objective of

increasing co-operation. Should differences result from such discussions, a

complaint may be initiated in Step Two by the Chairman of the Grievance

Committee within 30 days thereafter. In the event that the complaint

progresses through the Complaint and Grievance Procedure to arbitration, the

Arbitrator shall determine whether such rule or requirement is appropriate to

achieve the objective set forth in Section 1 of this Article Twelve. (155)

In the event the Company decides to contest a compensation claim, it will

advise the person designated by the Union. (156)

The Company will provide the Recording Secretary of the Local with prompt

notification of any accident resulting in a fatality to a Union member. This

notification shall be either oral or written and include the date of the fatality

and, if known, the cause of the fatality. The Company will provide the

Recording Secretary of the Local with a copy of the fatal accident report that

is given to the Local Union Joint Safety and Health Committee when such

report becomes available. Any necessary discussion or other communication

on this data between the Company and the International Union will be with

the individual designated to provide such information. (157)

Section 2 - Use of Disciplinary Records

- 37 -

Written records of disciplinary action against the employee involved for the

violation of a safety rule but not involving a penalty of time off will not be

used by the Company in any arbitration concerning such action. (158)

When an employee has completed 24 consecutive months of work without

discipline involving a penalty of time off for violation of a safety rule, prior


disciplinary penalties for such offenses not exceeding 4 days suspension shall

not be used for further disciplinary action. (159)

Section 3 - Alcoholism and Drug Abuse

Alcoholism and drug abuse are recognized by the parties to be treatable

conditions. Without detracting from the existing rights and obligations of the

parties recognized in the other provisions of this Agreement, the Company

and the Union agree to co-operate at the Plant level in encouraging

employees afflicted with alcoholism or drug abuse to undergo a co-ordinated

program directed to the objective of their rehabilitation. (160)

Section 4 - Safety and Health Training

The Company recognizes the special need to provide appropriate safety and

health training to all employees. The Company presently has safety and

health training that provides either the training described below or the basis

for such training as it relates to the needs of the Company and its various

Plants. (161)

Training programs shall recognize that there are different needs for safety

and health training for newly hired employees, employees who are

transferred or assigned to a new job and employees who require periodic

retraining. The Joint Safety and Health Committee may make

recommendations on these and other safety education matters. (162)

Section 5 - Medical Records

The Company shall release employee medical records to the workers who

request them. All remaining files will be destroyed. (163)

Section 6 - Occupational Health and Safety Act

- 38 -

The Occupational Health and Safety Act R.S.O. 1990, c. 0.1 as amended by

S.O. 1992, c. 14, 2.2 hereinafter referred to as the Health and Safety Act is

incorporated into and forms part of this agreement.

The employer and the Union agree to abide by those provisions unless this

agreement provides otherwise. Amendments to the Health and Safety Act


other than those indicated above shall not be incorporated into this agreement

except upon written agreement of the parties. (164)

ARTICLE THIRTEEN – MANAGEMENT

Section 1 - Management

A. The Company retains the sole and exclusive right to manage the

business and to direct the working forces. The Company, in the exercise of

its rights, shall observe the provisions of this Agreement. (165)

The right to manage the business and to direct the working forces include,

but is not limited to, the right to hire, suspend, discharge, or transfer, and the

right to relieve employees from duty because of lack of work or for other

legitimate reasons. (166)

B. The Company retains the sole discretion to assign employees to

any duty for which they have been qualified, and for any time duration. It is

understood that job security and Company profitability depend upon the

flexibility of the work force. (167)

Notwithstanding the foregoing, the Company shall not assign employees in a

discriminatory or arbitrary fashion. (168)

Employees have no right to refuse an assignment for which they are duly

qualified. The Company may assign maintenance and craft employees to

perform production work, and may assign production employees to perform

maintenance or craft work. (169)

Section 2 - Qualification Levels Employees shall be qualified or disqualified for duties and/or qualification

levels based upon factors such as safety, productivity

- 39 -

and/or quality at the sole discretion of the Company, however, the Company

shall not make any such decision in a discriminatory or arbitrary fashion.

(170)

ARTICLE THIRTEEN – MANAGEMENT ... cont’d

Section 3 - Shift Assignment

The Company shall assign employees to shifts at the sole discretion of the

Company; however, the Company shall not assign employees in a

discriminatory or arbitrary fashion. (171)

ARTICLE FOURTEEN - STRIKES AND LOCKOUTS

During the term of this Agreement, the Company agrees that there shall be

no lockouts. (172)

The Union agrees that there shall be no strike, slow-down or other stoppage

or interference with work. Any employee or employees who violate the

provisions of this Article Fourteen may be discharged from the employ of the

Company in accordance with the procedure of Article Nine of this

Agreement. (173)

ARTICLE FIFTEEN - PROGRAM OF INSURANCE BENEFITS

The Program of Insurance Benefits is contained in a booklet entitled, “Your

Group Insurance Benefits” as set forth in Appendix B, effective March 1,

2017, a copy of which will be provided to each employee. Such booklet

constitutes a part of this Article Fifteen as though incorporated herein. (174)

ARTICLE SIXTEEN - RETIREMENT PLAN

The Company shall provide a defined contribution type Retirement Plan for

eligible members. The major components of the Plan are set forth in

Appendix C. (175)

ARTICLE SEVENTEEN - LETTERS OF UNDERSTANDING

- 40 -

All Letters of Understanding agreed to by the parties are incorporated into

and form part of this collective agreement. These Letters of Understanding

can be amended and supplemental Letters of Understanding can be added,

without the requirement of negotiating the entire contract. (176)

ARTICLE EIGHTEEN - TERM OF AGREEMENT

Section 1 - Term

This agreement shall become effective on the 1st day of March 2017 and shall

continue in full force and effect up to and including the 28th

day of February

2020. (177)

Section 2 - Notice

Either party desiring to renew or amend this Agreement may give notice in

writing of its intention during the last ninety (90) days of its operation. (178)

Section 3 - Commencement

If notice of the intention to renew or amend is given by either party pursuant

to the provision of the preceding paragraph, such negotiations shall

commence not later than fifteen (15) days after such notice or as soon

thereafter as is mutually agreed. (179)

Section 4 - Expiration

If, pursuant to such negotiations, an agreement on the renewal or amendment

of the Agreement is not reached prior to the current expiration date, or if no

notice is given, the Agreement shall continue in effect in accordance with the

terms of the OLRA. (180)

- 41 -

ARTICLE NINETEEN - RIGHT OF FIRST REFUSAL

During the term of this Agreement, if the Company receives a bona fide

Offer of Purchase, it is hereby agreed that the United Steelworkers through

an ESOP shall have the Right of First Refusal. This Right shall expire 30

days after the day the offer is received. (181)

Signed at Hamilton, Ontario

UNION DRAWN STEEL II LP

BY: Michael P. Pitterich

UNITED STEEL, PAPER, FORESTRY, RUBBER, MANUFACTURING,

ENERGY, ALLIED INDUSTRIAL and SERVICE WORKERS

INTERNATIONAL UNION (UNITED STEELWORKERS), LOCAL 2308

By: Harry Dendekker

Charlie Scibetta

Jason Glover

Roger Richard

- 42 -

APPENDIX A

STANDARD HOURLY WAGE SCALE OF RATES, STANDARD

SKILLED TRADE RATES AND WAGE KICKERS The Standard Hourly Wage Scale of Rates shall be as follows:

Wage Increase

2017 01-Feb-17

$0.500

2018 01-Mar-18

$0.550

2019 01-Mar-19

$0.650

Job Class 1-2

3 4

$26.825

$26.992 $27.159

$27.375

$27.542 $27.709

$28.025

$28.192 $28.359

5 6

7

$27.326 $27.493

$27.660

$27.876 $28.043

$28.210

$28.526 $28.693

$28.860

8 9

10

$27.827 $27.994

$28.161

$28.377 $28.544

$28.711

$29.027 $29.194

$29.361

11 12

13

$28.328 $28.495

$28.662

$28.878 $29.045

$29.212

$29.528 $29.695

$29.862

14 15 16

$28.829 $28.996 $29.163

$29.379 $29.546 $29.713

$30.029 $30.196 $30.363

17 18 19

$29.330 $29.447 $29.664

$29.880 $29.997 $30.214

$30.530 $30.647 $30.864

20 $28.831 $30.381 $31.031

Janitor/Power Sweeper Operator (Note: Wage kickers do not apply to

this position.)

$25.577 $26.127 $26.777

STANDARD SKILLED TRADE RATES

Wage Increase

2017 01-Feb-17

$0.500

2018 01-Mar-18

$0.550

2019 01-Mar-19

$0.650

Electrician (Wireman) & Machinist $30.497 $31.047 $31.697

Maintenance Leader $30.831 $31.381 $32.031

- 43 -

APPENDIX A ... cont’d

WAGE KICKERS

Total Monthly

Shipments

Wage Kicker

(+ or -)

Cumulative

Wage Kickers

3,400

3,600

3,900

$0.50/hour

$0.50/hour

$0.50/hour

$0.50/hour

$1.00/hour

$1.50/hour

4,100

4,300

4,500

$0.50/hour

$0.50/hour

$0.50/hour

$2.00/hour

$2.50/hour

$3.00/hour

4,700

4,900

5,100

$0.20/hour

$0.20/hour

$0.20/hour

$3.20/hour

$3.40/hour

$3.60/hour

5,300

5,500

5,700

$0.20/hour

$0.20/hour

$0.20/hour

$3.80/hour

$4.00/hour

$4.20/hour

5,900 $0.20/hour $4.40/hour

These tonnage goals are for the total of both prime tons and “conversion”

tonnage shipped. Hot roll bar straightened conversion tonnage will not be

included in total monthly shipments.

The wage kickers are determined, on a plus or minus basis, on a three (3)

month rolling average basis and are payable or not payable for the following

month only, but to only the nearest biweekly pay periods in the following

month. July and December are to be excluded from the calculation of the

three (3) month rolling average.

Note: Wage kickers are cumulative, so that more than one (1) can be

applicable for any months nearest biweekly pay periods.

- 44 -

APPENDIX B

BENEFITS PROGRAM

Life Insurance: $62,000.00

Accidental Death Benefit: $60,000.00

Short Term Disability: $650.00 per week, maximum 26 weeks.

Qualifying Disability Period:

Your qualifying disability period shall be:

1. For a disability due to an injury: 0 days.

2. For a disability due to a disease or pregnancy: 4 days.

However, if you should be hospitalized prior to the 5th

day of disability,

benefit payments will commence on the 1st day of hospitalization.

For out-patient surgery or procedure, the four (4) day waiting period will be

reduced to 0 days. The Company will pay the employee for the days until

the W.I. insurance benefit begins at $85.00/day.

Long Term Disability: $1,000/month. Company to give supplemental

payments of up to $300/month, for up to 36 months, if required. CPP

disability benefits not to reduce the LTD benefit during the 24 month period,

providing the CPP disability benefits are payable.

Health and Hospital: Drug card with $1.50 deductible per prescription.

The Company pays the first $12.00 for drug dispensing. Reimbursement is

100% of covered charges. Semi-private hospital. Paramedical coverages.

Out of Province emergency hospital and medical.

Vision Care: $400.00 per person per 24 months.

Over and above the $350, eye exams to be paid

for Employee and dependents one time during the life of the contract.

Receipt must be provided. Insurance is not to be used for eye exams.

45

APPENDIX B: BENEFITS PROGRAM ... cont’d

Dental: The insurance provider will pay on the basis of the previous year’s

Dental Association suggested Schedule of Fees for General Practitioners as of the

1st month following the month in which the insurance provider receives the new

Schedule.

Basic Services: Reimbursement is 100% of Insured Charges. Part A

Services: Diagnostic clinical oral recall examinations limited to 1 every 9 months

and all other limited and specific examinations limited to 1 total in any calendar

year.

Major Restorative: Reimbursement is 50% of Insured Charges.

The overall maximum is $1,700.00 per person per calendar

year.

Orthodontics: Reimbursement is 50% of Insured Charges.

Maximum is $1,500.00 in the lifetime per dependent child.

Retirees: Prescription drug coverage at age 60 - 65 with ten (10) years

combined service.

Retirement Incentive/Extended Benefit of $23,000.00 per employee paid on date

of retirement, available up to a maximum of 16 employees over the life of the

contract. Maximum ten (10) in the 1st year and six (6) in the 2

nd year. This

applies to only those employees who turn sixty (60) or over during this contract,

or workers with 30 years’ service.

There will be no out of pocket expenses for included benefits for covered

employees. However, the employee is responsible for determining whether their

service provider will accept this arrangement with Industrial Alliance (insurance

provider).

NOTE: The above is intended as a brief outline of the major benefits. Please

refer to your booklet for additional information.

46

APPENDIX C

RETIREMENT PLAN

The Defined Contribution Retirement Plan for eligible hourly employees

shall be as follows:

1. The Plan provided for eligible hourly employees is a Defined

Contribution Type Retirement Plan.

2. The workers that were previously employed under Union Drawn Steel

Company Limited that were hired as Union Drawn Steel II LP

employees are immediately enrolled in the Plan, except for former

employees having experienced a break in their continuous service with

Union Drawn Steel Company Limited, as defined under Article Ten -

Seniority.

3. New employees hired by Union Drawn Steel II LP will be enrolled in

the Plan after completion of two (2) years of service.

4. The amounts to be contributed by the Company per year of the Contract

shall be as follows:

March 1,

2017

March 1,

2018

March 1,

2019

$3,800

($1.83/hr)

$3,950

($1.90 /hr)

$4,100

($1.97/hr)

Note: The total amount for the year shall be prorated pursuant to the time

worked for the year, but will include vacation and holiday time off work.

The total amount paid is not to exceed the yearly amount contributed by the

Company.

5. Contributions for all members will be direct deposited monthly, to a

mutually agreed to Trust Company for deposit into the RRSP account

for each individual member.

6. A summary copy of all contributions made to each individual member

shall be given to the Union.

7. Members on Short Term and Long Term disability receive RRSP

contribution.

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