COLLECTIVE AGREEMENT

BETWEEN

MERCHANTS PAPER COMPANY

AND

TEAMSTERS UNION LOCAL 879

EXPIRY DATE: May 15, 2022

TABLE OF CONTENTS

ARTICLE 1: RECOGNITION ............................................................................ 2

ARTICLE 2: UNION SECURITY •...........•...•.......•..•..•.•..••..•............................... 2

ARTICLE 3: BRANCH VISITATION .................................................................. 3

ARTICLE 4: STRIKES & LOCKOUTS ...........•.•..•..•........•................................... 3

ARTICLE 5: GRIEVANCE PROCEDURE .......•..........•...•...•...........................••.•.. 3

ARTICLE 6: ARBITRATION ............................................................................. 4

ARTICLE 7: SENIORITY •...•..•.....................................................•.................... 5

ARTICLE 8: LEAVE OF ABSENCE .....•.•.....•.............................•.•••.•...•...••..••...... 6

ARTICLE 9: PAID HOLIDAYS ..•.....•................................................••.••............ 7

ARTICLE 10: VACATIONS .•.•..................••..•.•.•....•••.•.•.•...•.•.•......•.........•..••.•••••.• 8

ARTICLE 11: RESERVATIONS TO MANAGEMENT ............................................. 9

ARTICLE 12: DISCRIMINATION .............•..•.......•..•.•.•.•.•.•••.•..•.••..••..••.•••........ 10

ARTICLE 13: HEALTH & WELFARE 10

ARTICLE 14: PENSION PLAN ..•.•........................................................•.•••.••.•.• 13

ARTICLE 15: HOURS OF WORK •............................................•...•............••..••.. 14

ARTICLE 16: RATES OF PAY .................................••..•.......•.•.•.•.•.••.•...••.•......... 15

ARTICLE 17: CALL-IN ..........•.••.•.•...••....................................................•••.•..... 16

ARTICLE 18: BEREAVEMENT .••.•.•...............................•.•.•.•••.•••.•.••.••.••.•.......... 16

ARTICLE 19: DUTIES OF LEADER .............•.....••••.•.•.•.•.•.•••.•••......................•.•• 16

ARTICLE 20: PART TIME EMPLOYEES .......................••..••.•..•••..•..•.••..••........... 16

ARTICLE 21: JURY- CROWN WITNESS DUTY 17

ARTICLE 22: RULES & REGULATIONS 17

ARTICLE 23: DURATION ......••.•..•.•.........•...........•...•....•.•••.••••••.•.•••••••••........•.• 18

LETTER OF UNDERSTANDING (PART-TIME EMPLOYEES) .............................. 19

LETTER OF UNDERSTANDING ..........••.•.•.•.•..•...•......................•••••••.•••.••.•.•...... 20

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THIS AGREEMENT ENTERED INTO THIS 16th DAY OF MAY, 2019.

BETWEEN:

WITNESSETH:

MERCHANTS PAPER COMPANY (hereinafter referred to as the "Company")

AND

TEAMSTERS UNION LOCAL 879 (hereinafter referred to as the "Union")

In consideration of the mutual promises, covenants and agreements, hereinafter contained, the parties agree, hereto, as follows:

ARTICLE 1: RECOGNITION

1.1 The Company recognizes Teamsters Union Local 880 (now Teamsters Union Local 879) as the sole and exclusive Bargaining Agent for all its employees at Windsor, Ontario save and except, Foremen, persons above the rank of Foremen, Office and Sales Staff, as set forth in the certification awarded by the Ontario Labour Board, April 20, 1966.

ARTICLE 2: UNION SECURITY

2.1 It shall be a condition of employment of all employees of the Employer covered by this Agreement who are members of the Union in good standing, and those who are not members on the effective date of this Agreement to, on the date of their hiring, become and remain as members in good standing of the Union except as provided in Article 20 hereof.

2.2 For the first ninety (90) days of employment, an employee shall be considered probationary and shall have no right to the grievance procedure.

2.3 The Company agrees to deduct from the last pay cheque due each employee, each month, the monthly dues of any employee covered by this Agreement, and remit such monies so deducted to the Head Office of the Local Union, not later than the tenth (lOth) day of the month following the date upon which such monies were deducted, except, as provided in Article 20 hereof.

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2.4 The Union will supply the Company with "Application for Union Membership Dues Deduction Authorization Forms", which shall be signed by all new employees on the date on which employees are obliged to become and remain members in good standing of the Union.

2.5 All completed copies of the "Application for Union Membership" forms shall be returned to the Union and shall serve as notification of commencement of employment. Upon termination of employment of an employee, his "Dues Deduction Authorization" shall be returned to the Union within four ( 4) working days.

ARTICLE 3: BRANCH VISITATION

3.1 The Business Representative of the Union shall be granted admission to the Company's plant and warehouse during working hours to interview members of the Union after first receiving permission from Management, and with the understanding that there will not be any interruption of work.

ARTICLE 4: STRIKES & LOCKOUTS

4.1 During the term of this Agreement, the Union agrees that there will be no strikes, slow-downs, or any other interference by the Union or, any of its members, and the Company agrees that there will be no lockout of its employees during the term of this Agreement.

ARTICLE 5: GRIEVANCE PROCEDURE

5.1 The Union agrees to select a Steward of their choosing who will be an employee, having at least six (6) months' seniority, and who will constitute the Grievance Committee for the handling and settling of all complaints and grievances. The Union will notify the Company, in writing of the name of the Steward, selected from time to time.

5.2 No grievance shall be considered which usurps the function of Management and where the circumstances giving rise to it occurred or originated more than three (3) working days before taking the matter up with the Branch Manager. No grievance shall be considered unless it is reduced to writing, signed by the employee aggrieved, and unless it specifies the Article or Articles of the Collective Agreement alleged to have been violated by Management. Management will answer grievances, in writing, within three (3) working days after they have been submitted.

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5.3 Management Grievances

An allegation by the Company that the Union or any Officer, Agent or Representative, or member thereof, has violated or misinterpreted this Agreement, may be lodged by way of grievance by the Company with any member of the Grievance Committee or with any Officer, Agent or Representative of the Union, provided that it shall be optional for the Union to decline any grievance the alleged circumstances of which originated or occurred more than three (3) working days prior to its presentation. All Management grievances shall be in writing and shall specify the Article or Articles of the Collective Agreement alleged to have been violated.

5.4 The grievances shall be considered by the Union, and the Union shall within five (5) calendar days from the filing thereof, give its reply in writing.

5.5 If the decision of the Union is not satisfactory to the Company, or if the Union fails to give its reply within the time herein before limited, the Company may, within five (5) calendar days of the receipt of the Union's decision, or of the expiry date of the time limited for the giving of the Union's reply (if no reply is made by the Union, whichever shall first occur) appeal there from to an impartial Arbitrator selected by the Company and the Union.

5.6 If the Company and the Union cannot agree on an Arbitrator within the period of five (5) calendar days referred to in the paragraph immediately preceding, the Minister of Labour for the Province of Ontario, or anyone authorized by him in that behalf, shall select one and the decision of the Arbitrator shall be final and binding upon the parties. The cost of Arbitration shall be borne in equal shares by the parties.

5.7 In order to expedite the prompt settlement of all grievances, it is agreed that the employees shall first take the grievance up with the Branch Manager, accompanied by the Steward. If the grievance cannot be adjusted, it will be reduced to writing and referred to a full time Union Representative of the Union who will file same with the Company, and both parties shall, within two (2) days meet and discuss the grievance. Failing agreement within a period of five (5) days from the filing thereof with the Company, the grievance shall be referred to Arbitration as provided in the next succeeding article of this Agreement.

ARTICLE 6: ARBITRATION

6.1 Where a difference arises between the parties relating to the interpretation, application or administration of this Agreement, including any question as

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to whether a matter is arbitrable, or where an allegation is made that this Agreement has been violated, either of the parties may, after exhausting any grievance procedure established by this Agreement, notify the other party in writing of its desire to submit the difference or allegation to arbitration and the notice shall contain the name of the first party's appointee to an Arbitration Board. The recipient of the notice shall within five (5) days, advise the other party of the name of its appointee to the Arbitration Board. The two appointees so selected shall, within five (5) days of the appointment of the second of them, appoint a third person, who shall be Chairman.

6.2 If the recipient of the notice fails to appoint an Arbitrator, or if the two appointees fail to agree upon a Chairman within the time limits, the appointment shall be made by the Minister of Labour, for the Province of Ontario, upon the request of either party.

6.3 The Arbitration Board shall hear and determine the difference or allegation and shall issue a decision which shall be final and binding upon the parties and upon any employee effected by it, but if there is no majority the decision of the Chairman shall govern. The Company and the Union shall each pay one-half of the costs of the Chairman as aforesaid.

ARTICLE 7: SENIORITY

7.1 Seniority is the principle of granting preference to employees in matters of work preference, lay-off and recall following lay-off.

7.2 Seniority shall apply to any employee after ninety (90) calendar days of continuous employment with the Company and shall be computed from the first day of his employment.

7.3 During the employee's probationary period, he shall be considered as being employed on a trial basis, and may be discharged or laid off, at the discretion of the Company and shall be without the benefit of the grievance procedure herein.

7.4 In cases of lay-offs and recalls after lay-offs, seniority shall prevail, provided the more senior employee has the qualifications and can show his ability to perform the normal function of the job to be performed.

7.5 Seniority shall be Company wide and a list shall, at the request of the Union, be prepared by the Company and shall be revised every twelve (12) months, or when necessary. A copy of this list shall be posted by the Company and the Company will forward a copy to the Executive of the Local Union within thirty (30) days after the signing of this Agreement.

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7.6 An employee shall lose his/ her seniority and his/her employment shall be terminated if he/she:

(a) is discharged for cause,

(b) has been laid off continuously for a period of more than twenty-one (21) months,

(c) if, when called back to work by telephone call or personal message delivered to him, or an adult member of his family, he does not return to work within twenty-four (24) hours of being so notified. When the employee cannot be contacted, or is employed elsewhere, the Company will notify the employee by registered mail or telegram forwarded to his last known address in the file with the Company, to return to work, and he will be allowed no more than seven (7) consecutive days from the date of notification to report for duty,

(d) is absent for three (3) consecutive days or more for any reason, without leave of absence in writing, except, in case of provable sickness, accident or an unforeseeable event,

(e) If an employee has been or will be unable to work due to illness or injury with no reasonable prospect of returning to work in the foreseeable future

7.7 Employees who leave the Company to serve in the Armed Forces shall retain their seniority, and on return, be placed in their old job or an equivalent job, at the prevailing rates.

ARTICLE 8: LEAVE OF ABSENCE

8.1 An employee may request from the Company, in writing, leave of absence without pay for pressing personal reasons. The request shall receive consideration of Management, who will give a written answer within seven (7) days from the receipt of the request.

8.2 All leave of absences shall be in writing, in triplicate and signed by the Company and the employee. One copy shall be retained by the Company and one shall be given to the Employee, and one shall be forwarded to the Secretary of the Local Union.

8.3 Leave of absence shall be without pay and the time elapsed during such leave of absence shall not be counted in computing the employee's vacation pay.

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8.4 Wherever good and sufficient reasons exist, a leave of absence may be granted at the sole discretion of the Company. Any employee engaged in other employment during leave of absence will be subject to immediate dismissal unless such employment has been previously agreed to by the Company.

ARTICLE 9: PAID HOLIDAYS

9.1 The following Holidays when they fall will be granted to all employees, with pay, after they have completed their probationary period:

NEW YEAR'S DAY DOMINION DAY THANKSGIVING DAY BOXING DAY

GOOD FRIDAY CIVIC HOLIDAY DAY BEFORE CHRISTMAS DAY BEFORE NEW YEAR'S DAY

VICTORIA DAY LABOUR DAY CHRISTMAS DAY

and each employee entitled thereto, will receive ONE (1) FULL DAY TO BE TAKEN AT A TIME MUTUALLY AGREED UPON.

(a) The selection of the day to be taken by the employee will be made on a seniority basis so that the employee with the highest seniority, will whenever practical be given his choice of the day to be taken.

(b) If Heritage Day is proclaimed a Statutory Holiday by Law within the terms of this Agreement, it will then replace the said Holiday as referred to in (a) above.

(c) The Company may substitute the Day before Christmas and the Day before New Year's Day with lieu Days by mutual agreement to those involved. In the event sufficient workers cannot be obtained on a voluntary basis, staffing on such days will be assigned in reverse order of seniority.

9.2 The basis of payment for each Holiday shall be based on the employee's regular daily shift at the employee's regular hourly rate.

9.3 If an employee is required to work on any of the above-mentioned Holidays, he shall be paid at the rate of time and one-half (1-1/2) his regular hourly rate for all time worked, in addition to his regular Holiday pay.

9.4 An employee who claims to be entitled to be paid for each of the aforementioned Holidays, shall receive pay therefore, only if he works his scheduled work day last preceding the Holiday and his scheduled work day

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next following the Holiday, or unless employee is absent from work on either of, or both qualifying shifts, for reason acceptable to the employer.

ARTICLE 10: VACATIONS

10.1 Employees with less than twelve (12) months employment with the Company shall receive Vacation Pay in accordance with the Employment Standards Act of Ontario.

10.2 Employees who have completed twelve (12) months employment with the Company shall receive two (2) weeks vacation with vacation pay computed at four per cent (4%) of the employee's gross annual earnings in the year immediately preceding, or either (80) hours of pay at the employee's regular rate of pay, whichever is greater.

10.3 Employees who have completed five (5) consecutive years employment with the Company shall receive three (3) weeks vacation with vacation pay calculated at six percent (6%) of the employee's gross annual earnings in the year immediately preceding, or one hundred and twenty (120) hours of pay at the employee's regular rate of pay, whichever is greater.

10.4 Employees who have completed ten (10) consecutive years employment with the Company shall receive four (4) weeks vacation with vacation pay calculated at eight percent (8%) of the employee's gross annual earnings in the year immediately preceding, or one hundred and sixty (160) hours of pay at the employee's regular rate of pay, whichever is greater.

10.5 Employees who have completed eighteen (18) consecutive years employment with the Company shall receive five (5) weeks vacation with vacation pay calculated at eleven percent (11 %) of the employee's gross annual earnings in the year immediately preceding, or two hundred (200) hours of pay at the employee's regular rate of pay, whichever is greater.

10.6 Employees who have completed twenty five (25) consecutive years employment with the Company shall receive six (6) weeks vacation with vacation pay calculated at twelve percent (12%) of the employee's gross annual earnings in the year immediately preceding, or two hundred forty (240) hours of pay at the employee's regular rate of pay, whichever is greater.

10.7 Employees who have completed thirty (30) consecutive years employment with the company shall receive six (6) weeks vacation with vacation pay calculated at thirteen percent (13%) of the employee's gross annual earnings in the year immediately preceding, or two hundred forty (240) hours of pay at the employee's regular rate of pay, whichever is greater.

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10.8 Vacation Periods and Qualifications Subject to Paragraph "C" herein a) The choice of vacation periods shall be by seniority and the

Company guarantees that all employees wishing to take their vacation during the months of June, July, August, September and October shall be allowed to do so. It shall not be mandatory, however, for employees to take vacations during this period. Employees choosing their vacation periods in other than the summer vacation period shall be allowed to do so in accordance with their seniority. The Company will have each employee come into the Manager's office in order of seniority to sign for the time he/she would like for his/her vacation. The final vacation schedule shall be posted by the Company not later than April 1st of each year.

b) Summer vacation period shall be June, July, August, September and October inclusive.

c) Employees qualified for more than three (3) weeks vacation will be restricted to three (3) weeks during the recognized summer vacation period. The Company retains the right to restrict the number of persons on vacation at the same time to two (2) where it deems it necessary to do so for the efficient operation of the Company.

10.9 In order to be eligible to receive the eighty (80) hours pay in 10.2, the one hundred and twenty (120) hours in 10.3, and one hundred sixty (160) hours in 10.4 and two hundred (200) hours in 10.5, and/or two hundred forty (240) hours in 10.6 and/or 10.7, an employee has to work forty-two (42) weeks of the previous fifty-two (52) week period. Vacation time will be included in the tabulation of total weeks worked.

10.10 Vacation entitlement shall be computed from the anniversary date of the employee's continuous service with the Company.

ARTICLE 11: RESERVATIONS TO MANAGEMENT

11.1 The Union recognizes and acknowledges that it is the exclusive function of the Company to maintain order, discipline and efficiency, to hire, promote, demote or transfer and suspend employees subject to the provisions of this Agreement and also the right of the Company to discipline or discharge any employee for cause provided that a claim by an employee that he has been discharged or disciplined without just cause may be subject of a grievance and dealt with as provided in this Agreement.

11.2 The Union further recognizes the right of the Company to operate and manage its business in all respects in accordance with its commitments and

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responsibilities. The location of Plants, Branches, products to be fabricated and/or delivered, schedules of production and economic activity, methods, processes and the means of carrying Company decisions into effect are solely, and exclusively the responsibility of the Company. The Company also has the right to make and after from time to time, Rules and Regulations to be observed by the employees, provided that such are not inconsistent with the provisions of this Agreement.

ARTICLE 12: DISCRIMINATION

12.1 Neither the Union nor its members shall refuse to process, deliver and/or handle any goods or commodities on the Company's premises by reason of the fact that such goods or commodities are in any way identified with a labour dispute in which any other business, place of business or shop or means of transportation may be involved.

ARTICLE 13: HEALTH & WELFARE

13.1 The Company agrees to pay the premiums for the following insurance coverage's for employees who are actively employed and their eligible dependents:

a) Ontario Ministry of Health Insurance Plan or equivalent covering employees and employees' eligible dependents. If O.H.I.P. is discontinued, the Company will pay the full cost of premiums of a plan providing coverage equal to that provided by O.H.I.P.

b) (i) Life Insurance, providing a benefit of $45,000.00 upon the death of an employee;

(ii) Accidental Death and Dismemberment coverage in the amount of $45,000.00.

c) Optical (Vision) Care Plan providing for payment of up to $250.00 for prescription eyeglasses during any continuous twenty-four (24) month period.

d) Dental Care Insurance at the 2018 O.D.A. fee guide for 2019; 2019 O.D.A. for 2020; 2020 O.D.A. FOR 2021. Regular check­ups/cleaning shall be limited to one (1) visit every nine (9) months for the purposes of coverage under the plan.

Coverage for basic dental subject to a 10% co-pay, and the limit for basic coverage/basic restorative is $1,000 per annum.

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The co-pay for major restorative is 50%, and the limit for major restorative is $1,000 per annum.

The plan shall also include coverage for orthodontics (non-adult) up to a $1,500 maximum lifetime limit with a 50% co-pay.

e) An Extended Health Care Plan, including, in addition to the foregoing where applicable:

(i) medicare supplement expense coverage;

(ii) prescription drugs, with a deductible of $3.00 per prescription paid by the employee. This prescription drug plan will apply only to prescription drugs and not to prescribed drugs which can be obtained without a prescription. This prescription drug plan will only apply to the purchase of generic drugs. It is understood, however, that the employee's physician can preclude substitution of medication with a generic drug if the physician so declares.

(iii) Dispensing fee charge coverage shall be capped at Seven Dollars and Fifty Cents ($7.50) per prescription.

f) Disability Income Protection. The employee shall be covered for the first two (2) weeks of sickness and accident as follows: coverage shall accrue from the first (1st) day of an accident, and/or the fourth (4th) day of illness resulting in continuous absence from work for a period of two (2) weeks in conjunction with the Employment Insurance Benefits, based on two-thirds (2/3) of the employee's earnings to a maximum in an amount provided for by the Employment Insurance Commission or the Employment Insurance Act. The Company further agrees to pay for up to six (6) weeks to the employee the amount he would receive from the Unemployment Insurance Commission until the employee receives his first U.I.C. cheque, at which time the employee shall reimburse the Company for all monies received from the Company or its insurers after the initial two (2) weeks. The employees shall sign a form supplied by the Company containing a direction to this effect before being entitled to receive such payments from the Company.

13.2 All insurances provided by this Article shall provide benefits as great as or better than those provided by the plans of insurance provided for in the current Collective Agreement through the present Great West Life Assurance Company Group Life and Health programs, to the maximum provided in this Agreement. The Company shall deliver to the Union a memorandum outlining the benefits contained in the plan(s) of Insurance.

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13.3 To be el igible for the benefits as set out above, an employee must:

13.4

(i)

(ii )

(iii)

(iv)

a)

have completed his/her probationary period;

be ava ilable for work the full month that the contribution is being made, subject to the terms of this Agreement;

have not been off work due to sickness or injury for a period longer than twelve (12) months.

have not been off work due to lay- off for a period of two (2) additional months following the month of lay-off.

All employees on the seniority list shall be entitled to earn five (5) days of sick leave credits in each contract year. Employees will be credited their sick leave entitlement on the fifteenth (15th) day of May, August, November and February

b) Unused sick leave credits may be accumulated up to a maximum of five (5) days per contract year.

c) Notwithstanding the above, the employee may elect to forego payment for unused sick leave credits, in which case the employee may elect to bank up to five (5) unused sick leave credits from one year to the next, to a maximum of eight (8) sick leave credits. In the event an employee elects to bank sick leave credits, unused sick leave credits in excess of eight (8) as at the 15th day of May of each year shall be paid out at 100% of value basect on the employee's daily pay calculated at the regular rate of pay.

d) The union agrees that sick day entitlement must be earned. Without derogation from that principle and without prejudice to the company's right to recover by way of set off against held back wages for paid sick days that have been granted and taken but not yet earned, the company agrees to credit to an employee the sick days at the beginning of each contract year (ie. May 16th of each year) and an employee may draw down any or all of the days so credited, including banked days, as the employee may require.

e) In the event an employee is discharged, quits, or is laid off, and has earned or banked sick leave days to his/her credit, such credits shall be paid to the employee at 75% of the regular day's rate of pay for current year credits earned and unused and at a 100% rate for unused banked credits.

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13.5 For the purposes of this Article "actively employed" means actively working regularly scheduled shifts on a full-time basis.

13.6 Employees who remain off work longer than the twelve (12) months described in 13.3 (iii) , shall be allowed to remain on the Company plan for up to an additional twelve (12) months provided he/she provides the pre­payment of premiums due to the employer.

13.6 The Company shall have the option of requiring employees to wear uniforms. In the event the Company required employees to wear uniforms, the Company shall provide uniforms at their cost. The Company will reimburse full time employees to a maximum of two hundred dollars ($200.00) per year for the purchase of C.S.A. approved safety shoes upon delivery of a proper receipt for such purchase. Part time employees will be reimbursed up to fifty dollars ($50.00) for purchase of C.S.A. approved safety shoes upon delivery of a proper receipt for such purchase.

13.7 For employees who retire prior to age sixty-five (65) who are sixty (60) years or over, the Employer will pay the cost of benefits as provided under the Teamsters Benefits Plan for Early Retirees (Under Age 65), in accordance with Schedule "A" attached and forming part of this agreement, to a maximum of Two Hundred and Fifty Dollars ($250.00) per month for a maximum of two (2) years from the date of retirement or until the early retiree reaches the age of sixty-five (65), whichever first occurs. The Employer has no responsibility or liability as a result of any changes that may be made to coverages under the Teamsters plan.

ARTICLE 14: PENSION PLAN

14.1 Effective May 16, 2019, the Company shall pay into the Pension Plan established with the insurer, (and the employee shall make a matching contribution to be deducted from the employee's wages), the sum of one dollar and forty cents ($1.40) per hour for each hour for which the employee has earnings, including vacation time and statutory holidays;

The Insurer shall be instructed by the Company to supply employees with a breakdown of their pension credits from time to time.

14.2 Employees in the Bargaining Unit would become eligible after having completed a period of two (2) years of employment. The Company shall not be required to make pension contributions on account of hours worked or for which an employee has earnings by employees who are not eligible for the Plan.

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ARTICLE 15: HOURS OF WORK

15.1 The workweek shall consist of forty (40) hours per week. The employer shall have the right to schedule the workweek, without limitation of its general right to schedule the work, as follows:

15.2

a) five (5), eight (8) hour days, Monday through Friday. Time worked in excess of eight (8) hours in any one day and/or forty ( 40) hours in any one week Monday to Friday, shall be deemed to be overtime and shall be paid for at the rate of time and one half (1 1/2) the employee's regular hourly rate.

b) four (4), ten (10) hour days within a seven (7) day period. Time worked in excess of ten (10) hours in any one day and/or forty (40) hours in any one seven day period, shall be deemed to be overtime and shall be paid for at the rate of time and one half (1 1/2) the employee's regular hourly rate. The regular workdays for this schedule shall be Monday through Friday, such that work performed on Saturday or Sunday shall be paid at the premium rate prescribed in this Agreement.

Scheduling shall be done so that employees on this work schedule shall receive a three (3) day weekend at least once (1) every two (2) weeks.

NOTE: Overtime shall be paid on nine (9) hour shifts after nine (9) hours, Monday to Thursday. Fridays will be overtime after four (4) hours.

(i) Providing that the employee has completed forty ( 40) hours of work in the Monday to Friday preceding, all work performed by him on Saturday will be paid at the premium rate of time and one-half (1-1/2) his regular rate of pay. Also, any time worked at the request of the Company before the regular starting time, shall be paid at time and one-half (1-1/2), if the Company elects to send the employee home before the end of his regular shift time due to lack of work. This provision shall not apply if the employee is sent home early for disciplinary reasons.

(ii) If however, for any reason other than an act of God, or through fault of the Company, the employee has not completed forty ( 40) hours of work in the preceding Monday to Friday, if he is required to work on the Saturday the premium rate of pay will commence only after he has completed his fortieth (40th) hour of work in that week (i.e., if an employee has only worked thirty-five (35) hours in the preceding Monday to Friday, and he is required to work eight (8)

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hours on Saturday, the time worked on Saturday will be paid for as follows - five (5) hours at the employee's regular hourly rate = three (3) hours at the premium rate of time and one-half (1-1/2) his regular rate). Statutory or paid Holiday Vacation Days and Bereavement Days shall be classified as time worked for calculating the forty ( 40) hours worked.

(iii) However, no employee shall be compelled to take time off from his normal workweek in lieu of earned overtime.

15.3 Double time (2X) the employee's regular rate of pay shall be paid for all work performed on Sunday.

15.4 Overtime will be allocated wherever, in the Company's opinion, it is practicable to do so, on the basis of seniority. Overtime so allocated will be on a voluntary basis going down the seniority list, and on a compulsory basis going up the seniority list.

15.5 See "Letter of Understanding".

ARTICLE 16: RATES OF PAY

16.1 (a) Wage Rates shall be as follows:

Classification May 15, 2019 May 16, 2020 May 16, 2021

Driver /Warehouseman $23.15 $23.90 $24.65

It is agreed that "Leader Warehousemen" shall receive thirty (30) cents per hour above the rates as set forth above.

(b) Rate of Pay- New Hires:

Base Rate: 75% of the then-prevailing rate 1st Anniversary: 83% of the then-prevailing rate 2nd Anniversary: 92% of the then-prevailing rate 3rd Anniversary: 100% of the then-prevailing rate

SHIFT PREMIUM $0.20/hr

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ARTICLE 17: CALL-IN

17.1 Employees called in to work shall be guaranteed four (4) hours at their regular hourly rate.

17.2 Employees called back to work after leaving the Company's premises shall be paid overtime for all hours worked but shall be guaranteed no less than four (4) hours' pay at their regular hourly rate.

ARTICLE 18: BEREAVEMENT

18.1 The Company agrees to grant employees up to three (3) days off without loss of pay, at the time of the death of the MOTHER, FATHER, SPOUSE, SON, DAUGHTER, MOTHER-IN-LAW, FATHER-IN-LAW, STEP-PARENTS, STEP-CHILDREN, BROTHER, AND SISTER.

18.2 The Company agrees to grant leave of absence of one (1) day with pay at the time of death of: SISTER-IN-LAW, BROTHER-IN-LAW, GRANDPARENTS, GRANDCHILDREN AND SPOUSE'S GRANDPARENTS.

ARTICLE 19: DUTIES OF LEADER

19.1 The Company may designate one (1) or more "lead-hands" in the warehouse department. The "lead-hand" shall in addition to his regular duties communicate operational instructions from management to employees. He shall be a Union member. He shall not have the authority to hire, fire or penalize. When the lead hand is required to drive or perform overtime work, he shall only be engaged in the work process according to his seniority and qualifications. A lead-hand shall not enjoy preferential treatment if he is subject to lay-off but will be laid-off in accordance with his seniority, regardless of his qualifications.

ARTICLE 20: PART TIME EMPLOYEES

20.1 Part-time employees and/or students shall not be employed to the extent that it results in the displacement or loss of time of full-time employees.

20.2 For the purpose of this Agreement relating to Union dues and coverage by the Agreement, it is agreed that part-time employees working more than eight (8) hours per month shall be required to pay Union dues. Bona fide students shall not be required to pay Union dues. Bona fide student shall mean a person who is enrolled in a school and who is working on either

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school vacations or who is working on an occasional basis during the school term. It is agreed and understood that in all other cases, that all employees employed by the Company shall become members of the Union upon hiring and shall pay Union dues from and after the date of hiring; provided that nothing shall be deemed to qualify Clause 3 of Article 2.

ARTICLE 21: JURY- CROWN WITNESS DUTY

21.1 If an employee is called and is required to serve on Jury Duty on his normal working day, the Company agrees to pay for the time lost to a maximum of the number of hours the employee would have been scheduled to work on his/her shift on that day, at the employee's regular hourly rate, LESS, the amount of Jury Duty pay received by the employee.

21.2 Crown Witness Duty: If an employee is called and is required to serve as a Crown Witness, then the Company agrees to pay for the time lost to a maximum of the number of hours the employee would have been schedules to work on his/her shift on that day, at the employee's regular hourly rate, LESS, the amount of the Crown Witness pay received by the employee.

21.3 For the purpose of Sections 1 and 2 of this Article, it is intended to encompass ALL MONIES received by the employee while serving on Jury Duty or as a Crown Witness.

ARTICLE 22: RULES & REGULATIONS

22.1 It is agreed that the Company shall incorporate and may from time to time change Rules and Regulations covering the actions of employees. It is agreed however, that such Rules and Regulations shall not be inconsistent with the provisions of this Collective Agreement.

22.2 Copy of the Rules and Regulations and all changes or revisions thereto shall be submitted to the Local Union, before such Rules and Regulations are put into effect by the Company.

22.3 The written record of the administration of disciplinary action against an employee shall be removed from the employee's record fifteen (15) months after the occurrence of the event described therein and shall not thereafter be relied upon by the Company in future disciplinary proceedings, provided that the employee has not been charged with another disciplinary offence within the fifteen (15) month period.

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ARTICLE 23: DURATION

23.1 THIS AGREEMENT SHALL BECOME EFFECTIVE on the 16th day of MAY, 2019, AND SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL THE 15th day of MAY, 2022, and from year to year thereafter, unless either party shall notify the other party in writing of their intention to modify the Agreement, between the 30th and the 60th day of the date of expiration by registered mail.

23.2 Negotiations shall be entered into within fifteen (15) days of notification to do so.

23.3 THIS AGREEMENT shall continue in force and effect until a new Agreement is reached.

23.4 THIS AGREEMENT shall be binding upon the parties hereto, their Successors, Administrators, Executors and Assigns.

IN WITNESS WHEREOF THE P RTIES H~.HAVE SET THEIR HANDS AND SEALS THIS ~ DAY OF -./c.-- 2019.

FOR THE COMPANY FOR THE UNION MERCHANTS PAP COMPANY TEAMSTERS UNION LOCAL 879

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LEITER OF UNDERSTANDING (PART-TIME EMPLOYEES)

BETWEEN

MERCHANTS PAPER COMPANY

AND

TEAMSTERS UNION LOCAL 879

The Union and the Company agree to allow the use of part-time employees to work up to twenty (20) hours each per week, excluding vacation replacement or sickness replacement.

Except for vacation replacement or replacement for casual (short-term) illness or absence, if an employee replaces an absent employee on a full-time basis, he/she will be considered to be temporary full-time and shall be paid at the start rate for new hires while he/she is so assigned.

The Union and the Company further agree that the number of part-time employees regularly scheduled are limited to three (3). Part-time employees will not be scheduled to circumvent the hiring of full-time employees.

The said employee will pay union dues as outlined in the Collective Agreement.

Part-time employees shall be paid in accord with the Employment Standards Act minimum standard, in effect from time to time.

Part-time employees as defined herein, are not mem~ers of the bargaining unit.

Dated at Windsor, this '2---//- day of ~~ 20 h FOR THE COMPANY MERCHANTS PA R COMPANY

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FOR THE UNION TEAMSTERS UNION LOCAL 879

LETTER OF UNDERSTANDING

BETWEEN

MERCHANTS PAPER COMPANY

AND

TEAMSTERS UNION LOCAL 879

This Letter of Understanding is to become part of the Collective Agreement which was entered into May 16, 1997 and expires May 15, 2022.

ARTICLE 15: HOURS OF WORK

15.5 In the event management is required to perform work normally done by Bargaining Unit employees, the following process shall be followed:

- the management person shall make a request to the Warehouse Manager or a designated supervisor, explaining the reason.

- the Warehouse Manager or designate shall inform the steward of the work to be done and the reason.

The Company agrees that such work shall not be done habitually or on a regular basis.

Dated at Windsor, this 1/--v" day of

FOR THE COMPA MERCHANTS PA ER C

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FOR THE UNION TEAMSTERS NION LOCAL 879

IMPORTANT NOTE:

If you leave the employ of the Company, contact your Local Union either in person, or, by mail, for a WITHDRAWAL CARD. OBTAINING A WITHDRAWAL CARD IS THE SOLE RESPONSIBILITY OF THE MEMBER.

WITHDRAWAL CARDS can only be issued to a member whose dues are paid to and including the month in which the withdrawal card is requested.

IF YOU ARE NOT WORKING DUE TO SICKNESS, LAY-OFF, WORKMAN'S COMPENSATION, ETC, NOTIFY THE UNION OFFICE & OBTAIN A WITHDRAWAL CARD.

WITHDRAWAL CARDS ARE VALID ONLY WHEN A MEMBER IS NOT WORKING AT THE CRAFT.

KNOW YOUR AGREEMENT: ..... MAKE SURE YOU KEEP IT FOR YOUR FUTURE REFERENCE. IF THERE IS ANYTHING ABOUT WHICH YOU MAY BE IN DOUBT, ASK YOUR STEWARD TO ADVISE YOU, OR CONTACT YOUR LOCAL UNION OFFICE.

ALWAYS

1. ATTEND YOUR UNION MEETINGS.

2. Help new employees become acquainted with the agreement

3. If you leave the employ of the Company, contact your Local Union office for a withdrawal card.

"BE A GOOD UNION MEMBER"

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