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Collective Agreement April 1, 2003 Orion Bus Industries An ISO 9001:2000 Registered Company A DaimlerChrysler Company

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Collective AgreementApril 1, 2003

Orion Bus Industries

An ISO 9001:2000 Registered CompanyA DaimlerChrysler Company

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COLLECTIVE AGREEMENT

between

ORION BUS INDUSTRIES LTD.(hereinafter referred to as the “Company”)

- and -

NATIONAL AUTOMOBILEAEROSPACE

TRANSPORTATION ANDGENERAL

WORKERS UNION OF CANADA(CAW CANADA) LOCAL 1285

(hereinafter referred to as the “Union”)

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INDEX

DEFINITIONSEmployee ............................................................................ 11Employer ............................................................................. 11The Parties .......................................................................... 11

ARTICLE 1Purpose of Agreement ......................................................... 11

ARTICLE 2Recognition ......................................................................... 12

ARTICLE 3Non-Discrimination .............................................................. 12Violence Against Women..................................................... 13

ARTICLE 4Management’s Rights .......................................................... 14

ARTICLE 5Union Security ..................................................................... 14

ARTICLE 6Bargaining Unit Work ........................................................... 16

ARTICLE 7Union representation............................................................ 17Day Shift ............................................................................. 17Afternoon Shift ..................................................................... 17

ARTICLE 8Leave - Union Activities ........................................................ 18Payment of Bargaining Committee ....................................... 20Full-Time Unit Chairperson ................................................... 21Super Seniority .................................................................... 22Bulletin Boards .................................................................... 22Union Information - New Employees ..................................... 22

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ARTICLE 9Discipline ............................................................................ 23Just Cause .......................................................................... 24

ARTICLE 10Strike or Lockout .................................................................. 24

ARTICLE 11Grievance Procedure ........................................................... 25Step 1 ................................................................................. 26Step 2 ................................................................................. 26Policy Grievance ................................................................. 29Arbitration............................................................................ 29

ARTICLE 12Seniority .............................................................................. 31Loss of Seniority .................................................................. 32

ARTICLE 13Posting and Filling of Vacancies........................................... 33Internal Job Transfer BiddingProcedure (Standing Application) ......................................... 35

ARTICLE 14Temporary Assignments ....................................................... 36

ARTICLE 15Layoff and Recall ................................................................. 38Benefit Coverage During Layoff............................................ 40Layoff Progression Chart ..................................................... 41Production........................................................................... 41Skilled Trades ..................................................................... 42

ARTICLE 16Probationary Employees...................................................... 43

ARTICLE 17Job Classification Procedure ............................................... 43

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ARTICLE 18Classifications and Rates of Pay .......................................... 46April 1, 2003 ........................................................................ 47April 5, 2004 ........................................................................ 48April 4, 2005 ........................................................................ 49

ARTICLE 19Hours of Work ..................................................................... 50Changes to Schedule........................................................... 50Dayshift ............................................................................... 50Afternoon ............................................................................ 50Night Shift ............................................................................ 50Breaks ................................................................................ 50Notice of Absence ............................................................... 51Automatic Absenteeism Recording ...................................... 52Time Keeping ...................................................................... 52Direct Deposit ..................................................................... 52Shift Premium ...................................................................... 52Overtime ............................................................................. 53Overtime Procedure............................................................. 54Meal Allowance ................................................................... 55Reporting Pay ..................................................................... 56Call Back ............................................................................ 56

ARTICLE 20Holidays and Holidays Pay ................................................... 56Birthday with Pay ................................................................. 58

ARTICLE 21Vacation with Pay ............................................................... 59Calculation of Vacation Pay.................................................. 63

ARTICLE 22Pregnancy Leave................................................................. 63Parental/Adoption Leave...................................................... 64Birth of a Child ..................................................................... 66Bereavement Leave............................................................. 66Jury Duty Leave ................................................................... 67

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Leave of Absence ................................................................ 67Emergency Leave ............................................................... 68Formal Leave of Absence ................................................... 68Citizenship Leave ................................................................ 69Public Office Leave .............................................................. 69Education and Paid Education Leave................................... 70Union Paid Education Leave ................................................ 71Social Justice Fund ............................................................. 71

ARTICLE 23Health and Safety................................................................. 72Structure of Committees ....................................................... 73Functions of the Joint Committee ......................................... 74Inspections .......................................................................... 75Recommendations of the Joint Committees.......................... 75Accidents and Accompaniment ............................................ 75Minutes of Meetings ............................................................. 76Payment for Committee Members ........................................ 77Meeting Agenda .................................................................. 77General ............................................................................... 77Footwear ............................................................................. 78Protective Clothing............................................................... 79Eye Protection ..................................................................... 79Medical Surveillance ............................................................ 80Reporting Injuries ................................................................. 81Housekeeping ..................................................................... 81Fire Prevention .................................................................... 82Humidex Heat Stress Plan.................................................... 82

ARTICLE 24New Technology................................................................... 84

ARTICLE 25Plant Closure ....................................................................... 85Severance........................................................................... 86Adjustment Committee ........................................................ 86

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ARTICLE 26Workplace Harassment Complaint Procedure ...................... 86Harassment is not ................................................................ 88Filing a Complaint ................................................................ 88Investigation ........................................................................ 89Resolution ........................................................................... 89Training ............................................................................... 90

ARTICLE 27Pay Equity Plan ................................................................... 91

ARTICLE 28Medical Placements ............................................................ 91Physically Handicapped Employees ..................................... 92Medical Certificates ............................................................. 92Surveillance ......................................................................... 93Substance Abuse ................................................................ 94

ARTICLE 29Licences ............................................................................. 95Trade Licence Fees ............................................................. 95

ARTICLE 30Employment Insurance Rebate ............................................. 96

ARTICLE 31Photo Identification .............................................................. 96Parking ............................................................................... 96Union Election ..................................................................... 96Lunchroom, Washroom and First Aid .................................... 97April 28 - Day of Mourning .................................................... 97Tools ................................................................................... 97

ARTICLE 32Duration .............................................................................. 97

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SKILLED TRADES ............................................................ 99Skilled Trades Seniority ..................................................... 100Layoff and Recall ............................................................... 100Skilled Trades Council ....................................................... 101Supplementary Help........................................................... 102Apprenticeship .................................................................. 103

SCHEDULE “A”Managerial Organizational Grievance Procedure ................ 110

SCHEDULE ‘B’Benefits ............................................................................. 111Life Insurance .................................................................... 112Dependent Life Insurance Coverage .................................. 112Optional Life Insurance ....................................................... 112Accidental Death and Dismemberment Coverage .............. 113Benefits Eligibility .............................................................. 113Extension of Coverage on your Death................................. 113Weekly Indemnity ............................................................... 114Extended Disability Benefits .............................................. 114Travel Assistance Coverage ............................................... 115Prescription Drug Coverage .............................................. 115Extended Health Care Coverage ....................................... 115Vision Care ....................................................................... 117Dental ............................................................................... 117Child Orthodontic Coverage ............................................... 118Basic Services - Coverage 100% ...................................... 118Major Services - 80% to set maximum................................ 119Emergency Dental Coverage ............................................. 119Preferred Vision Services .................................................. 120Employee Assistance Program .......................................... 120Greater Benefits ................................................................ 120Retirement ........................................................................ 120Benefit Coverage for Retirement ........................................ 120Pension Plan ..................................................................... 120

LETTER OF UNDERSTANDING ..................................... 122

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DEFINITIONS

Employee

An Employee includes a Person who performs any work, receivesany instructions, or training in the activity, business, work, tradewithin the classifications listed in Article 28.

Employer

An Employer under this Collective Agreement includes any owner,proprietor, Director, Manager, Superintendent, Supervisor who hascontrol or direction of, or is directly or indirectly responsible for theemployment of a Person who falls under this Agreement as definedabove as an Employee.

The Parties

The parties referred to in this Agreement shall be those Employeeswho represent the Union as outlined in Section 6.0 and 7.0 andthe Employer shall be represented by the Senior Manager of HumanResources or his or her designee.

ARTICLE 1

Purpose of Agreement

The general purpose of this Agreement is to establish and maintainCollective Bargaining relations between the Company and theUnion and the Employees covered by this Agreement and to providea mechanism for the timely disposition of Grievances. ThisAgreement will be regarded as the complete and full statement ofthe understanding between the parties.

In order to ensure that Article 1 of this Agreement is fulfilled in auniform and non-discriminatory manner, any such amendments thatmay be required to this Agreement shall be reduced to writing inthe form of a letter of intent and shall be signed by both parties i.e.

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the Unit Chairperson and the President of Local 1285 (or his orher designee) and the Senior Manager of Human Resources orhis or her designee. Such letters that are duly signed will be includedin and form part of the Agreement as of the applicable date ofsuch letters.

ARTICLE 2

Recognition

The Company recognizes that the Union is the sole and exclusiveBargaining Agent during the term of this Agreement in all matterspertaining to wages, hours of work, and working conditions for allEmployees of Orion Bus Industries Ltd. working at the Mississauga,Ontario, Canada facility save and except Supervisors and Personsabove the rank of supervisor, office, sales, clerical, technical staff,and security guards.

In the event that the Company moves the existing plant to anotherlocation in Ontario, the Company will voluntarily recognize the CAWas the Union. The Company also agrees to provide currentemployees who wish to transfer to the new location, employmentopportunities at the new location and will recognize their Companyseniority. Employment will be offered in order of their seniority.

ARTICLE 3

Non-Discrimination

The parties to this Agreement agree there shall be nodiscrimination against any Employee by the Company, its officials,or the Union pursuant to the provisions of the Ontario Human RightsCode.

The Company and the Union will make every endeavour to ensurethat no Employee will suffer job loss, demotion or any form of workrelated discrimination based upon any Employee’s race, religion,nationality, ancestry, colour, age, gender, sexual orientation, source

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of income, political beliefs, marital status, physical/mental disability,ethnic background, or systemic discrimination. Further the partieswill also make every endeavour to ensure that no sexual harassmentoccurs in the work place.

The Company agrees that official Representatives of the Unionshall be free to discharge their duties without fear that their individualrelations with the Company may be affected by any action takenby them in their official Representative capacity within the terms ofthis Agreement.

Any Employee found to be acting in any manner which is contraryto the intention of this Article will be subject to the discipline process.

Unless indicated otherwise it is understood that the provisions ofthis Agreement shall apply equally to female and male Employees

The term “Employee” shall mean an Employee covered by theprovisions of this Collective Agreement unless otherwise indicated.

Violence Against Women

During the current negotiations, the parties discussed the concernthat women sometimes face situations of violence or abuse intheir professional life that may affect their attendance orperformance at work. The parties agree that when there isadequate verification from a recognized professional (ie. Doctor,lawyer, professional counselor), a woman who is in an abusive orviolent Personal situation will not be subjected to discipline withoutgiving full consideration to the facts in the case of each individualand the circumstances surrounding the incident otherwisesupportive of discipline. This statement intent is subject to astandard of good faith on the part of the Company, the Union andaffected Employees, and will not be utilized by the Union orEmployees to subvert the application of otherwise appropriatedisciplinary measures.

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ARTICLE 4

Management’s Rights

Except as otherwise abridged by the specific provisions in thisAgreement, the Company has the undisputed right to operate,direct and manage its business, which rights include, but are notlimited to, the right to establish and maintain cost reductionmethods and techniques, to schedule and direct the work force,maintain order, discipline, hire, and assign the various duties tobe performed, make and apply reasonable rules and regulationsto be observed by Employees, provided nothing herein shall restrictthe rights of the parties pursuant to the Ontario Labour RelationsAct, and other Provincial and Federal Status.

The Company agrees and understands that the existence of itsfunction under the above paragraph will not be inconsistent withany of the terms of this agreement.

ARTICLE 5

Union Security

It is agreed that all Employees of the Company who are membersof the Union as of the date of signing of this Agreement, shall, as acondition of employment, remain members in good standing asprovided in the constitution and by-laws of the Union. All newEmployees after the date of signing of this Agreement shall berequired and sign an application for membership and authorizationfor check off of dues and initiation fee, supplied by the Union to theCompany.

The Local Union copy of this form will be forwarded to the LocalUnion Financial Secretary upon completion.

All dues and initiation fees deducted must be remitted to the LocalUnion Financial Secretary within seven (7) working days of thedeductions with a list of names and the amount of each deduction.

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The Company will also supply a list of those members who did nothave Union dues deducted and the reason why no deduction tookplace.

The Company also agrees to include on the Employee’s T-4 slipfor income tax purposes, the total union dues paid for the year. Atthe end of each calendar year, the Union shall provide the Companywith written confirmation that they will not be reporting thedeductions to Revenue Canada.

The Financial Secretary of the Local Union will notify the Companyof any change in the amount of Union Dues and/or Initiation Fee tobe deducted in line with Constitutional requirement of the NationalUnion. The Union shall provide the Company with thirty (30) dayswritten notice of any increase or decrease in the amount of duesto be deducted from the Bargaining Unit Employees.

The Company further agrees to furnish the following information tothe Local Union President and a copy of such list will also beprovided to the Union Plant Chairperson.

1. A list of all members in the Bargaining Unit Monthly2. Update address, names and telephone numbers Monthly3. A monthly status change report of the Bargaining

Unit Employees identifying the following:· Reclassification· New Hires, including classification· Transfer out of the Bargaining Unit· Each members status (ie. Active or on Leave –

interruption in earning for more than two weeks.)4. Number of hours worked in the month. Monthly5. Each member’s hourly rate and job title. Monthly6. Termination List Monthly

At such a time that the payroll system changes, the Companyagrees to provide additional information as requested.

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The Union agrees to indemnify and save the Employer from anyclaims, suits, judgments, attachments, and from any form of liabilityas a result of making such deductions in accordance with the writtendirection of the Union.

ARTICLE 6

Bargaining Unit Work

Persons not covered by this agreement shall not perform any worknormally performed by employees in the Bargaining Unit exceptfor the purpose of training and instruction or in the event of anemergency, which is beyond the control of the Company.

The Company agrees that before any work which is normallyperformed by members of the Bargaining Unit is contracted out,Management will discuss its intentions with and explain itsreasons to the Union. Management will consider any suggestedUnion alternative as to how the work might be completed moreefficiently and effectively by members of the Bargaining Unitbefore finalizing its decisions. In suggesting alternatives, theUnion will address pertinent factors such as efficiency, cost andavailability of resources and shall submit these suggestions withintwo weeks of being notified by the Company of its intent tocontract out work.

In the event that a satisfactory alternative is proposed,Management will reconsider its tentative decision and will givedue consideration to the alternative suggested by the Unionbefore making its final decision. In giving due consideration, theCompany will give preference to its own Employees performingthe work provided the Company is satisfied that the factorsoutlined above have been met.

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ARTICLE 7

Union Representation

The Union and Management Committees shall meet as requiredby each party. The Committee shall consist of the BargainingCommittee and two members of the Health and Safety Committee.

Day Shift:The Company acknowledges the right of the Union to elect orappoint three (3) committee persons of whom one (1) shall be theSkilled Trades Committee person.

Afternoon Shift:The Company acknowledges the right of the Union to elect orappoint four (4) Committee Persons whom one (1) shall be theSkilled Trades Committee person and one (1) of the Committeepersons shall be recognized as Chief Steward. The Chief Stewardshall be allowed one (1) hour at the end of each shift and paid bythe Company for the purpose of administering the CollectiveAgreement.

The Union Bargaining Committee shall be comprised of theChairperson and four (4) Committee persons, one (1) who will befrom the Skilled Trades and the Chief Steward from the afternoonshift.

The Union agrees to elect/select 3 Employees, one of which willCo-chair the Joint Health and Safety Committee. The Committeeshall meet a minimum of once every 2 months or when necessary.

The Union acknowledges that the Committee members haveregular duties to perform on behalf of the Company and may notleave their regular duties without notifying their immediatesupervisor. Each Committee person shall, with the consent of theirsupervisor, be permitted to leave their regular duties for areasonable length of time without loss of pay, to function as aCommittee person as provided in this Collective Agreement. Such

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consent from the supervisor shall not be unreasonably withheld. Ifin the course of such time away from his or her regular duties theCommittee Person visits another designated department, he orshe shall, upon entering that department, advise the supervisor ofthat department, or his or her designate, of the nature of his or herbusiness. The Committee Person will not interrupt Employeesengaged in a work activity without the permission of theEmployee’s supervisor. Such permission shall not be unreasonablydenied. All Committee Persons shall enter and remain in the plantonly on their respective shifts unless otherwise agreed to bymanagement.

The Union agrees to supply the Company Human Resources Officewith the names of all Officers and Officials of the Local, and willkeep such lists up-to-date at all times.

The Company agrees to permit the use of a meeting room by theUnion, once per month for two (2) hours for the purpose of meetingswith the Bargaining Committee and Co-Chair of the Health andSafety Committee. The Company will pay lost time to all Unionofficials who attend the meeting.

Changes to this article will take effect after the next Union election.

ARTICLE 8

Leave - Union Activities

The Union shall notify the Employer in writing on or before eachelection or whenever changes take place of the names of itsRepresentatives as follows: Officers, Bargaining CommitteeMembers, Union Management Committee Members, Stewards,and Health and Safety Representatives.

All leaves under Article 8.0 shall be co-ordinated through theManager, Human Resources.

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The Employer shall provide the Union with the following:

(a) every three months, an up-to-date list of Employeeslisting names and classifications according to seniorityprovision and procedures; and

(b) immediate notification of job postings, awards, noticesof promotions, demotions, hirings, resignations,retirements and deaths.

(c) a List of Management and Supervisors

A National Representative or Representative(s) of the NationalUnion may be present and participate in any meeting of the UnionBargaining Committee and the Company.

The Company agrees to print and supply the Collective Agreementsand benefits books, to all Employees in the Bargaining Unit, at nocost to the Union or the Employees. The printing to be performedby mutually agreed upon printer and to be distributed within three(3) months of ratification.

Leave of absence with no loss of pay unless stipulated otherwiseand without loss of vacation credits, seniority or other benefits shallbe granted to a member of the Union. Such leave shall be subjectto the following conditions:

(a) not more than five (5) Employees at any one time shallbe permitted such leave for any one set of negotiations,or under the Union Management/Committee meetingsnot more than seven (7).

The above Employees include full-time unit chairperson.

(b) a request must be made in writing and approved atleast two (2) weeks prior to the commencement of thedate or dates for which leave is requested, if possible;and

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(c) not more than two (2) Employees are absent on anysuch leave at the same time from a section.

Any leaves of absence granted hereunder shall be without loss ofvacation credits, seniority or other benefits to the Employeesgranted such leaves.

Payment of Bargaining Committee

The Company shall pay lost wages for the negotiating committeeduring contract negotiations for renewal of the CollectiveAgreement. Pay will be at straight time hourly rate for a maximumof eight (8) hours per day. This provision shall also apply to three(3) meetings for preparing for negotiations

Leave without pay will be granted for a period up to ten (10) workingdays to permit members of the Bargaining Unit to attendConventions, Conferences or Educational Seminars called by theC.A.W. National Union or other Labour Councils. It is understoodthat not more than five (5) members will be granted leave duringany period of time and it is further understood that not more thantwo (2) Employees are absent on any such leave at the same timefrom the same section. Employees absent on union leave ofabsence shall continue to accumulate seniority. As well, coverageunder all benefit plans including pension shall continue.

A request must be made in writing and approved at least two (2)weeks prior to the commencement of the date or dates for whichleave is requested. The requirement to make the written requesttwo (2) weeks prior to the commencement of the date of the leaveshall not apply if the Union itself did not receive two (2) weeksadvance notice of the date of the convention or seminar. If suchspecial circumstances arise, the Union shall make the writtenrequest as soon as they have knowledge of the date for which theleave is requested.

Leave without pay will be granted for the purpose of local Unionbusiness with written notification at least two (2) days prior for a

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one (1) day leave and at least one (1) week prior for two (2) daysor more.

Full-time Unit Chairperson

The Unit Plant Chairperson shall be known as the full timeChairperson. He or she shall be on a full time basis for the purposeof administering the Agreement in co-operation with CommitteePersons in all shifts. He or she shall be allowed access to theareas of the Company where the Bargaining Unit Employees work,in the performance of his or her duties. He or she will be providedwith an office and office facilities including desk, chairs, filingcabinets, telephone and pay for the long distance calls.

The Company will provide the Unit Chairperson with computer,printer, fax machine, Internet service and other accessories for theabove and maintained in full working order, at all time.

The Vice-Chairperson of the Union Bargaining Committee orbecause of his or her unavailability, another designatedrepresentative of the union shall substitute for the full time PlantChairperson should he or she be absent from the Plant.

The full time Chairperson or his or her substitute shall receive therate of pay equal to the highest straight time rate in the BargainingUnit and will be limited to 48 hours at straight time per week. Thefull time Chairperson shall continue to accumulate seniority, as wellas coverage under all benefit plans including Pension shallcontinue.

When the Chairperson of the Union ceases to hold office, he orshe shall be returned, consistent with his or her seniority, to theclassification and to the department in which he or she wasemployed at the time of his or her selection as Chairperson. Payshall be adjusted based on the classification being held prior tobeing selected as Chairperson or to a classification that iscomparable if his or her original classification does not exist.

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Where a Local Union Official who is an Orion Employee is electedor appointed to a Union term of office outside the Company, aleave of absence shall be granted without loss of seniority andwithout pay or benefits. On completion of the leave he or she shallreturn to his or her former classification or to one that is comparableif his or her original classification does not exist.

The Union agrees to indemnify and save the Employer harmlessfrom any claims, suits, judgements, attachments and from any formof liability as a result of the Employer making such payments orarrangements for such individuals.

Super Seniority

The Chairperson of the Bargaining Committee, Co-Chair of theHealth and Safety Committee and Bargaining Committee shallbe the last Person who is removed from his or her classificationduring their term of office so long as work is available within his orher classification.

Thereafter he or she will be subject to all bumping provisions solong as full time work at his or her own level or a lower wage levelis available.

Bulletin Boards

The Company will provide six (6) enclosed bulletin boards for theuse of the Executive of the Union, at agreed upon locationsthroughout the work place for posting notices of the Union.

Union Information – New Employees

The Company agrees to acquaint new Employees with the factthat a Collective Agreement is in effect and with the conditions ofemployment set out in the Article dealing with Union Security andDues check off. The Company further agrees that a Unionrepresentative affected and the Union Chairperson will be givenan opportunity to meet with each Employee (with notice to the

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supervisor) within regular working hours, without loss of pay for upto fifteen (15) minutes, during the first thirty (30) days of employment.The Union or Company will provide the Employee with a copy ofthe Collective Agreement and Benefit book.

ARTICLE 9

Discipline

An Employee called for an interview for the purpose of reprimand,disciplinary action or investigation of same shall have a Unionrepresentative present during the interview.

An Employee shall only be disciplined in the presence of his or herUnion representative. The Employee shall be notified in writing(except in the case of a verbal warning) of the reasons for anydisciplinary action, suspension, or discharge at the time disciplineor discharge is taken. A copy of such written reasons shall begiven to the Employee’s Union representative at the same time.

In the case of suspension, no later than before the end of the nextworking day after suspension is taken.

The Employer shall take any disciplinary action, suspension ordischarge within three (3) working days of the date of the incidentor within three (3) working days of the date on which the Employerbecame aware of the incident. The onus is on the Employer toprove that they could not have known about the incident.

At any stage of the grievance procedure, including Arbitration, theCompany will be held to the grounds for discipline, suspension ordischarge set out in such letters. In addition, the Union shall beheld to the grounds set out in any written grievance.

It is recognized that a period of probation is a period during whichthe Employer has the right to assess an Employee to determinewhether such Employee is, in the sole opinion of the Employer,acceptable for employment. It is therefore recognized and agreed

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that probationary Employees may be released or dismissed atthe absolute and sole discretion of the Employer during theprobationary period and that such release or dismissal shall befor just cause.

If an Employee does not receive discipline for a period as set outbelow, then any disciplinary notices issued prior to this period willnot be held or used against him/her for the purpose of futuredisciplinary action.

Written warnings - after 6 months.Suspension - 12 monthsDischarge records to remain on file unless stipulatedthrough Arbitration or a grievance settlement.Or such documents may be removed irrespective of theabove as the result of any settlements under the GrievanceProcedure.

Where an Employee has a dispute through the GrievanceProcedure, with the Company, he or she shall have the right torequest a photocopy of the pertinent document that may becontained in his or her Personnel file.

Employees in the Bargaining Unit shall have access to theircorporate Personnel records at reasonable times and onreasonable notice to the Employer.

Just Cause

The Company agrees that no Employee covered by this Agreementshould be disciplined or discharged except for just cause.

ARTICLE 10

Strike or Lockout

In view of the orderly procedure for the settlement of complaintsand grievances, as established herein, the Union, its Officers and

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Agents and the Employees agree that there will be no strike, slow-down or stoppage of work and or disruption of the workplace andthe Employer agrees it will not engage in any lock out during thelife of this Agreement.

ARTICLE 11

Grievance Procedure

Any matters or complaints raised by an Employee of the Unioncovered by the terms of this Agreement regarding the administrativeinterpretation alleged violation, or application of this Agreement,may be submitted as a complaint or grievance.

An earnest effort shall be made without undue delay to settle anycomplaint or grievance which may arise between the Companyand the Union or an Employee in the following manner:

Reference to the section of Managerial Organizational GrievanceProcedure Chart must be taken, in order to ascertain the variousmanagerial levels of the Grievance Procedure for each section.Refer to Schedule A.

All scheduled workdays referred to in this Article shall be the normalscheduled workdays of the grievor.

Complaint Procedure: An Employee who has a complaint shalldiscuss it with his or her Supervisor or designate accompaniedby his or her Committee person within five (5) working days oflearning of the issue.

A full discussion with a view to resolving the complaint will be heldbetween the supervisor or designate, the Committee person andthe Employee involved. If the Supervisor or designate can notresolve the complaint, he or she shall give an oral reply, as soonas possible; but in all cases, it shall be given within two (2) workingdays from the original presentation of the complaint.

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Step One

If the decision of the Supervisor or designate at the ComplaintStage does not settle the issue to the satisfaction of the Employeeand the Committee person, then the complaint shall be presentedin writing (hereafter referred to as a grievance) to the immediateSuperintendent (or as per Schedule A), within three Employee’sworking days by the committee person from the date on which thedecision under the Complaint Stage was rendered. The grievanceform will be supplied by the Union. The Union shall attempt toidentify the applicable Article(s) of the Collective Agreementallegedly violated and the date of the incident.

Once presented, the applicable level of management shallinvestigate the alleged violation and render a written decision onthe grievance form within five (5) working days from the date ofpresentation.

The parties recognize the importance of full discussion and shallmake every effort to settle the complaint grievance at either theComplaint Stage or Step 1.

Step Two

Should the grievance proceed, it shall be presented by theCommittee person to the department manager or his or herdesignate within two (2) working days from the date on which thedecision at Step 1 was received by the Committee person.

A final effort at mutual settlement shall be made at a meeting to beheld within five (5) working days from the date upon which thegrievance was presented to the department manager. The HumanResources Manager and the Chairperson will mutually agree toan agenda outlining the grievance(s) to be heard at the Step 2meeting.

The Union shall be represented at such meeting by the Chairperson,Committee person, and the Bargaining Committee. Such

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meetings shall not exceed one (1) per month. The Company shallbe represented by the Human Resources Manager andDepartment Manager.

The Company shall provide the Union with its written decision onthe grievance within five (5) working days from the date of themeeting.

The Company will produce at the Step 2 meeting, such pertinentdisciplinary notices, production, payroll and attendance recordspertaining to the aggrieved Employee involved as may benecessary for the settlement of the grievance. The Union willproduce any pertinent documentation that would assist in resolutionof the grievance.

The Company agrees that an explanation shall be given for agrievance being denied at Step 2.

A monetary grievance settlement will be issued in the full amountand added to the Employee’s next regular pay cheque (dependingon the payroll schedule).

Within ten (10) working days from the date of receipt of theCompany’s decision on a grievance in Stage Two, the Chairpersonmay request in writing, that the grievance be appealed forArbitration.

It is understood that prior to any arbitration hearing, a meetingshall take place between the CAW National Representative, LocalPresident, Chairperson and the Director, Human Resources in anattempt to resolve the grievance.

In the case of suspension or discharge grievances, Step 2 shallbe invoked within three (3) working days.

Dismissal and Suspensions will bypass the complaint stage andoriginate at Step 2.

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Only Grievances that are filed on the appropriate Grievance formwill be allowed and also to initiate the Grievance Procedure thefollowing signatures are required.

Grievances originated at Step 1 of the procedure will be signedby the Grievor and Committee person in addition to theSupervisor’s signature at the complaint stage.

Grievances originated at Step 2 of the procedure will be signedby the Chairperson. The time limits contained in this Article maybe extended by Agreement between Human Resources andChairperson. If any such Agreement is not made in writing, theburden of proving the existence of any alleged Agreement shall beon the party asserting it.

Time spent during their normal working hours by UnionRepresentatives and grievors in processing Grievances inaccordance with the terms of this Article shall be without loss ofregular wages or benefits up to and including Step 2 of theGrievance Procedure. Permission to leave his or her work placeduring working hours for such purposes shall first be obtained fromthe Supervisor which permission shall not be unreasonablywithheld.

It is understood and agreed that failure of the Union to advance aGrievance within the agreed time frames at any step of theGrievance Procedure shall constitute abandonment of suchGrievance and;

Failure of Management to respond to a Grievance at any step ofthe Grievance Procedure shall constitute allowance of theGrievance.

Time periods stipulated in this Article shall be counted from theday following the submission of the Grievance or the reply.

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Policy Grievance

Where any difference arises between the Employer and the Unionrelating to the interpretation, application, administration or allegedviolation of the Agreement, the Union shall be entitled to file aGrievance with the Human Resources Office, provided it does sowithin and not after seven (7) calendar days from the occurrenceor origination of the circumstances giving rise to the Grievance.

A submission of a Policy Grievance to the Human ResourcesOffice shall be considered to be the second step of the GrievanceProcedure for the purposes of this Article. Union Policy Grievancesshall be signed by the Chairperson.

Where any difference arises between the Employer and the Unionrelating to the interpretation, application, administration or allegedviolation of the Agreement, the Employer shall be entitled to file aGrievance at Step 2 of the Grievance Procedure, through theHuman Resources Office provided it does so within and not afterseven (7) calendar days from the occurrence or origination of thecircumstances giving rise to the Grievance. Any such Grievancemay be filed with an Executive Board Member of the Union andthe provisions of Article 13 shall apply to a Grievance in an equalmanner.

Arbitration

It is agreed that disputes which are carried to the Arbitration stageshall be heard by a single Arbitrator, selected on a rotating basis,from a panel of four (4).

The four (4) Arbitrators shall be:· Tim Armstrong· Bruce Welling· Dan Harris· Bill Kaplan.

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If an Arbitrator, whose turn is indicated, can not act within thirty (30)days, the succeeding names will be approached in order until anArbitrator is reached who can sit within thirty (30) days.

An employee, appearing before an Arbitrator, on the hearing ofhis or her appeal on a grievance, shall be paid by the Company, athis or her regular rate of pay.

It is agreed that no matter may be submitted for arbitration until theGrievance Procedure established by this Agreement has beenexhausted.

The Arbitrator shall not have any jurisdiction to alter or amend inanyway the provisions of this Agreement; to substitute any newprovisions in lieu thereof, to give any decision inconsistent with orcontrary to the terms and conditions of this Agreement; or in anyway to modify, add to or delete from any provision of this Agreement.This prohibition shall not affect the powers conferred upon theArbitrator pursuant to the Ontario Labour Relations Act.

When either party to this Agreement requests that a grievance besubmitted for Arbitration, they shall make such request in writingaddressed to the other party to this Agreement.

No Person may be appointed as an Arbitrator who has beeninvolved in an attempt to negotiate or settle the Grievance unlessby mutual Agreement between the parties.

The proceedings of the Arbitration will be expedited by the partiesand the decision will be final and binding upon the parties heretoand the Employee or Employees concerned.

The Union and Management shall each be responsible for one-half (1/2) the expenses of and the fee payable to the Arbitrator.

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ARTICLE 12

Seniority

The Company and the Union agree with the principle that thosewith greatest seniority shall be given preference in promotions andthat those with least seniority shall be first to be demoted, ortransferred not withstanding the issue of qualifications.

Fundamentally, rules respecting seniority are designed to giveEmployees an equitable measure of job security based on lengthof service with the Company and subject to the provisions of theCollective Agreement.

Seniority will be established and maintained for all Employees inthe Bargaining Unit on a plant wide basis.

There shall be two (2) seniority lists as follows:a) Skilled Trades Employeesb) Employees other than the Skilled Trades Employees

Seniority rights shall be established from the date of hire and willbe update and posted on the plant notice boards on a regularbasis. A copy of such list will be given to the Chairperson of theUnit.

Employees will be regarded as probationary Employees for thefirst ninety (90) calendar days. Upon completion of the probationaryperiod, the Employees seniority will be retroactive back to theirhire date.

Where two or more Employees commence on the same entry dateinto the Bargaining Unit, the one with the first birth month of theyear shall be the more senior of the two or more Employees. Shouldtwo Employees have the same month it shall be the lowest day ofthe month to be the more senior.

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No Employee covered by this Agreement will be transferred to aposition outside the Bargaining Unit without his or her consent.

An Employee who is promoted out of the Bargaining Unit will loseall Bargaining Unit Seniority after they have been out of theBargaining Unit for ninety (90) calendar days.

Seniority lists should be maintained and revised every three (3)months by the Company and posted on the bulletin boards. Suchseniority lists shall stipulate the Employee number, name, date ofhire, and current Employee classification. A copy of the senioritylist shall be provided to the Chairperson of the Unit at time of posting.

An Employee while on layoff and maintains his or her right to recall,shall continue to accumulate seniority during such period.

Loss of Seniority

Seniority of an Employee shall cease and employment deemedterminated for any of the following reasons:

When an employee is absent from work for a period of twenty-four(24) consecutive months due to disability and at their option electsto take their severance in accordance with the EmploymentStandards Act. Should the employee elect to not take theirseverance, then their status as an employee will remain unchanged.The employee will have ninety (90) days from the twenty-four (24)date to make an election. The Company will notify the employeein writing, sending a registered letter to the employee’s last knownaddress on the Company’s record, copying the local UnionPresident and Chairperson.

If an Employee voluntarily quits his or her employment, retires or isdischarged and such discharge is not reversed through theGrievance or Arbitration Procedure.

A laid off Employee with seniority shall retain recall rights for aperiod equal to twelve (12) months if the seniority is less than one

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(1) year and thirty-six (36) months for all other Employees.

If an Employee is contacted but fails to report for work inaccordance with a notice of recall, or within ten (10) calendar daysafter registered mailing date of such notice, unless a satisfactoryreason is given.

It will be the sole responsibility of the Employee to provide writtennotification of any changes to his or her status, address, ortelephone number to the Human Resources Department.

ARTICLE 13

Posting and Filling of Vacancies

When a vacancy occurs or a new position is created which is notcovered under the existing classifications within the BargainingUnit, the Company shall post such new jobs or vacancies on thebulletin boards throughout the workplace for a period of five (5)working days and before considering external applicants and willonly consider external applicants, if there is no applicant from theBargaining Unit qualified. The Company shall not use its rights inan arbitrary or discriminatory manner. Where a classificationvacancy for the same classification occurs within three (3) monthsfrom a posting, then the original remaining applicants will beconsidered and the position will be filled from the most seniorqualified individual. The Unit Chairperson shall have access toany job posting file.

An Employee who will be absent due to vacation, may make writtenapplication to Human Resources for the purpose of applying forany job posting that will take place during their absence.

An Employee who has attained seniority is free to apply for anyposted job in which he or she can show experience or ability. Inthe case of a re-application, the Employee must show gainedexperience or ability.

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In filling jobs under this Section, the Employees with the greatestseniority shall be given preference over those with least seniorityprovided they are qualified and have the skills and ability. TheEmployer shall have the right to specify the qualifications requiredfor the job.

The Company shall state the numbers of vacancies, the title of theposition, the rate of pay and the areas in which the position exists.

Applicants who are deemed to be not qualified for a job postingshall be notified of the specific reason(s) they are not qualified.

An Employee accepted on a job posting will be notified of his orher acceptance within five (5) working days after the job postingprocess has been completed for that individual. If such successfulapplicant is not assigned to his or her new job within fifteen (15)working days from the day he or she was notified of his or heracceptance, he or she will receive the wage rate of his or her newjob effective on day fifteen (15).

A period of up to thirty (30) working days will be given to thesuccessful applicant to perform the requirements of the job. Duringsuch period the successful applicant will be given adequate trainingand instructions to demonstrate all of the processes associatedwith the job. The Company will not arbitrarily curtail this period. Inthe event that the successful applicant subsequently fails in theabove noted thirty (30) working days, he or she shall be returnedto his or her former job with full seniority.

After thirty (30) working days, an Employee’s seniority will be vestedto the job to which he or she moved under successful applicationfor a posted job.

Where an Employee who has previously held the classification ona permanent basis for which he or she is applying, he or she willautomatically be placed in the classification for which he or she isapplying, provided he or she is the most senior Person applyingamongst those applicants who have the skill, ability and

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qualifications, and has not been absent from the classification fora period more than two (2) years.

Internal Job Transfer Bidding Procedure(Standing Application)

This internal job transfer bidding procedure is within a givenclassification as follows:

This Procedure shall be applied only within the specificclassification, prior to the posting and filling of an ultimate vacancyin accordance with Article 12 of this Agreement.

All Employees within a specific classification are eligible to submita “Standing Application” to transfer to any existing alternate location(department), shift, (in order of preference) whichever is applicablewithin their current classification.

A copy of such Standing Application submitted will be furnished tothe Employee. A Standing Application will remain valid until it resultsin action or is replaced or withdrawn by the Employee, it is theresponsibility of the Employee to ensure that a Standing Applicationalways reflects the Employee’s current preferences. StandingApplications may be revised by the Employee no more than twiceper year.

Any job transfer award resulting from a Standing Applicationautomatically cancels his or her entire Standing Application on file.

When a permanent classification position vacancy is to be filled,all standing applications will immediately be reviewed with theintention of awarding transfers (including any “resultant” transfer)in order of seniority.

This procedure will eliminate the need for internal classificationposition vacancies to be posted, and for Employees to repeatedlysubmit applications for such vacancies.

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When a vacancy is to be filled by way of the Standing ApplicantProcedure, the deadline for Standing Application considerationwill be at midnight of that day.

For Employees who wish to transfer (i.e. shift or location) withintheir current classification on a permanent basis, the StandingApplication Procedure shall be used. Employees will not bepermitted to apply for a job posting within their own classificationafter the Standing Application Procedure has been completed.

In the event of an addition or alteration to current shifts or locationssuch new position will be posted for five (5) working days, with thedeadline for Standing Application submissions being midnight ofthe sixth (6) day following such above notification.

Employees shall not be permitted to refuse a transfer that has beenmade through the Standing Application Procedure.

Temporary transfers within the classification will deemed to be thirty(30) days in duration and will take place without the use of theStanding Application Procedure.

The Human Resources office will notify the Union of any vacancies,which the Employer does not intend to fill.

Standing Application Forms, when completed should be forwardedto the Supervisor who will forward the original copy to HumanResources and a receipt copy to the applicant.

Probationary Employees shall not be permitted to have a StandingApplication on file.

ARTICLE 14

Temporary Assignments

The Company may temporarily assign Employees to other worksuch as may be necessary, when there is not work available in his

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or her classification or to cover a temporary shortage, provided:

a) That the Union representatives for the areas affected areadvised of the work conditions, names and numbers ofEmployees involved prior to the commencement of theassignment;

b) That the temporary period shall in no case exceed thirty(30) working days unless increased by mutual consent ofthe Company and the Chairperson.

c) The Company agrees that it will not use temporaryassignment to circumvent the job posting or recallprocedure. It is understood that the word “temporary” asused above shall be deemed to mean thirty (30) workingdays or less.

d) Except as provide in Article 29(b), temporary vacancies inexcess of thirty (30) working days will be filled through thejob posting procedure. Such postings will stipulate atemporary vacancy. The job will be posted in accordancewith Article 12 of the Collective Agreement and will notexceed thirty (30) working days in duration, except in thecases of prolonged illness, unless a longer period isarranged by mutual consent of the Company and theChairperson.

e) No Employee will be laid off while an Employee istemporarily assigned to his or her job classification.

f) An Employee who fills such a temporary position will beallowed to return to his or her former classification with fullseniority when the temporary assignment is fulfilled. AnEmployee who is being temporarily replaced due to theirsickness and accident or any other leave of absence willbe allowed to return to their former classification with fullseniority;

g) Such Employees as may be assigned to the temporarywork shall receive the pay of their regular job classificationor the applicable step of the new job classification in whichthe temporary work occurs whichever is higher;

h) In the event the temporary assignment is to a higher ratedjob, the senior Personnel in the department affected will be

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given preference if qualified for the assignment;i) In the event the temporary assignment is to a lower job the

least senior Employee in the department affected will beassigned;

j) No disciplinary action will be taken against any Employeewho is assigned work of a temporary nature in another jobclassification by reason of his or her failing because of lackof job knowledge to satisfactorily do the work required ofhim/her in that classification;

k) When an Employee is temporarily assigned to anotherclassification and receives a higher wage rate, they will, ifabsent from work due to sickness, injury, a statutory holiday,vacation, jury duty, bereavement, or any other form of paidleave of absence he or she will continue to receive the higherwage adjustment.

l) Should a temporary assignment take place within the sameclassification for the purpose of a department change, itshall be voluntary by seniority and failing a volunteer forcedby seniority from the bottom up.

In the case of a permanent transfer within a classification resultingfrom work reallocation (ie. a department or shift change), it shallbe voluntary by seniority and failing a volunteer forced by seniorityfrom the bottom up.

ARTICLE 15

Layoff and Recall

When there is a reduction in the workforce, the Employer agreesthat Employees shall be laid off in the reverse order of theirclassification seniority. The Employees shall be recalled to workin order of their classification seniority.

In the event of a reduction in the workforce, all probationaryEmployees in the job classification affected in the Plant, shall belaid off before any Employee with seniority is laid off.

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Employees on temporary assignments shall be removed beforeany Employee on a permanent job. All temporary assignmentswill be cancelled before any layoff in that classification.

Employees with seniority rights in accordance with this Agreementshall be scheduled for layoff within the affected job classification inreverse order by job classification seniority plant wide and mayexercise bumping rights.

i) He or she may accept layoff rather than exercise bumpingrights, or

ii) He or she may elect to displace the Employee holding leastseniority at the next succeeding downward progression inthe flow chart.

The Company will give the Employee the required notice of layoffand applicable pay as provided in accordance with the EmploymentStandards Act. Notice of layoff will be made to the Union at leastfive (5) working days prior to the Notice required under theEmployment Standards Act.

A laid off Employee shall be called back to work in order of his orher seniority in the job classification which he or she was laid off.

A laid off Employee will not be eligible for recall to job classificationswhich he or she has refused on the way down the progression flowchart.

Laid off or surplus Employees should be called back in order oftheir classification seniority.

No new Employee or Employees shall be hired in the classificationuntil all laid off Employees from that classification have been giventhe opportunity to return to work.

Employees on layoff are entitled to apply for any job vacanciesarising out of a job posting.

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Benefit Coverage During Layoff

The Company will continue the following coverage for ninety (90)days after a permanent layoff:

· Prescription Drug

· Extended Health Care

· Dental

· Vision Care

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ARTICLE 16

Probationary Employees

An Employee who completes ninety (90) calendar days will beconsidered as having completed his or her Probation and his orher name will become active on the appropriate Seniority list,retroactive to the date on which he or she commenced his or herpresent employment with the Company.

Probationary Employees will cooperate in the formal appraisalsystem to validate their progress during this probationary period.

ARTICLE 17

Job Classification Procedure

This Article is established as an aid to the Company and the Unionto:

(a) preserve the principles and related provisions from which isestablished an equitable wage rate structure including the spiritand intent of the Provincial Pay Equity Act;

(b) continue to review the body of job descriptions andclassifications upon which the wage rate structure is based;and

(c) provide the procedure through which to maintain the jobdescriptions and classifications to reflect any new or changedconditions.

The following are definitions of terms as used herein:

(a) “Job Description” - the official record which sets forth for agiven job the identification, primary function, source ofsupervision, direction exercised, and working procedure ofthat job;

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(b) “Job content” - the requirements of a job pertaining to training,skill, responsibility, effort and working conditions;

(c) “Job Evaluation” - the official record which sets forth for a givenjob, the job content analysis and factor level code andevaluation values of the job’s requirements; and

(d) “Job classification” - Position Title.

The procedure for describing, evaluating and classifying a job shallbe in accordance with the following:

(a) the Company shall prepare on the form set forth, a proposedjob description in accordance with the requirements of thisArticle;

(b) the appropriate Company Representatives and UnionNegotiation Committee Representatives shall review theproposed job description and shall attempt to reachAgreement thereon. The Union Representatives shall havereasonable opportunity to conduct an on-the-job review of thejob descriptions with Employees in the jobs involved. TheCompany and Union Negotiation Committee Representativesshall each retain a copy of the agreed-to-job descriptions.

(c) following review by the Human Resources Office of the jobdescription, the Company shall prepare on the form set forth,a proposed job evaluation in accordance with the requirementsof this Article; and

(d) the appropriate Company Representatives and UnionNegotiation Committee Representatives shall review theproposed job evaluation and shall attempt to reach Agreementthereon. The Company Representatives and UnionNegotiation Committee Representatives shall retain copiesof the agreed-to-job evaluations.

Agreement upon job descriptions, job evaluation and classification

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shall be indicated by the signature of a designated Representativeof the Company and a designated Representative of the Union.

The descriptions and evaluations of jobs determined in accordancewith the foregoing apply to assign each job to its job class.

The hourly wage rate scale commences with a probationary hourlyrate which is the base of minimum hourly hiring rate for the job andthe maximum rate which is to be paid to those Employees whosuccessfully complete their progressive period.

When a new classification which is covered by the terms of thisCollective Agreement is established by the Employer, the rate ofpay for such new classification shall be determined through theaforementioned procedure. If the Union challenges the resultingrate, it shall have the right to request a meeting with the Employerto endeavour to negotiate a mutually satisfactory rate. Suchrequest will be made within ten (10) consecutive days after thereceipt of notice from the Employer of such new rate.

If the parties are unable to agree on the appropriate rate and/orany matter concerning the procedure, the dispute may be submittedto arbitration as provided in this Agreement within fifteen (15)consecutive days of such meeting. The decision of the Arbitratorshall be based on the agreed evaluation plan and rates for otherclassifications in the Bargaining Unit, having regard to therequirements of such classification, and within the guidelines ofthe Pay Equity Act.

If such a dispute occurs the Employer shall set forth an interim rateto be paid until the matter is resolved. Any new rate establishedshall be made retroactive and paid to any such incumbent(s) whomay be carrying out such work in the new classification.

Any job descriptions or portion thereof referred to in this Agreementshall not limit management’s rights as stipulated in this Agreement.

The sole purpose of such descriptions are for evaluating the

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position based on the mutually agreed job evaluation plan andmay not reflect all the duties that may be required.

ARTICLE 18

Classifications and Rates of Pay

(a) The wages and classifications for Employees covered bythis Agreement are contained in this Article.

(b) Employees promoted from one classification to another willstart on the grid for the new classification at the same gridlevel he or she was at in his or her old classification.

(c) No wage rate of pay will be adjusted, either upward ordownward during the life of this Agreement, except by mutualagreement between the Union and the Company. The wagerates and classifications covered by the Agreement will bepart of this Agreement.

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April 1, 2003

Skilled Trades Start Job Rate

R & D Mechanic (Tooling Qualified) $ 22.86 $ 24.91R & D Mechanic $ 22.86 $ 24.91Electrician $ 22.86 $ 24.91R & D Technician $ 20.33 $ 22.38Tool Maker $ 20.33 $ 22.38Metrologist $ 20.33 $ 22.38Industrial Mechanic (Millwright) $ 20.33 $ 22.38

Production Start 1 year 2 year 3 year

Inspector $ 19.12 $ 20.14 $ 20.67 $ 21.17Master Painter $ 18.41 $ 19.43 $ 19.95 $ 20.45Stainless Steel Welder Fitter $ 18.25 $ 19.27 $ 19.78 $ 20.29Coach Technician $ 17.71 $ 18.74 $ 19.25 $ 19.75Bodyperson $ 16.68 $ 17.71 $ 18.23 $ 18.74Assembler $ 16.67 $ 17.70 $ 18.22 $ 18.73Line Mechanic $ 16.67 $ 17.70 $ 18.22 $ 18.73Paint Prepper $ 16.67 $ 17.70 $ 18.22 $ 18.73Material Controller $ 16.67 $ 17.70 $ 18.22 $ 18.73Utility Person $ 14.87 $ 15.90 $ 16.40 $ 16.92

Employees currently at the 90 day rate will receive the applicablewage increases for their classification.

Employees who are permanently assigned to the classification ofInspector and perform road test function will receive a premium of.50 (50 cents) per hour above their hourly rate for each hourworked.

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April 5, 2004

Skilled Trades Start Job Rate

R & D Mechanic (Tooling Qualified) $ 23.36 $ 25.41R & D Mechanic $ 23.36 $ 25.41Electrician $ 23.36 $ 25.41R & D Technician $ 20.83 $ 22.88Tool Maker $ 20.83 $ 22.88Metrologist $ 20.83 $ 22.88Industrial Mechanic (Millwright) $ 20.83 $ 22.88

Production Start 1 year 2 year 3 year

Inspector $ 19.62 $ 20.64 $ 21.17 $ 21.67Master Painter $ 18.91 $ 19.93 $ 20.45 $ 20.95Stainless Steel Welder Fitter $ 18.75 $ 19.77 $ 20.28 $ 20.79Coach Technician $ 18.21 $ 19.24 $ 19.75 $ 20.25Bodyperson $ 17.18 $ 18.21 $ 18.73 $ 19.24Assembler $ 17.17 $ 18.20 $ 18.72 $ 19.23Line Mechanic $ 17.17 $ 18.20 $ 18.72 $ 19.23Paint Prepper $ 17.17 $ 18.20 $ 18.72 $ 19.23Material Controller $ 17.17 $ 18.20 $ 18.72 $ 19.23Utility Person $ 15.37 $ 16.40 $ 16.90 $ 17.42

Employees who are permanently assigned to the classification ofInspector and perform road test function will receive a premium of.50 (50 cents) per hour above their hourly rate for each hourworked.

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April 4, 2005

Skilled Trades Start Job Rate

R & D Mechanic (Tooling Qualified) $ 23.86 $ 25.91R & D Mechanic $ 23.86 $ 25.91Electrician $ 23.86 $ 25.91R & D Technician $ 21.33 $ 23.38Tool Maker $ 21.33 $ 23.38Metrologist $ 21.33 $ 23.38Industrial Mechanic (Millwright) $ 21.33 $ 23.38

Production Start 1 year 2 year 3 year

Inspector $ 20.12 $ 21.14 $ 21.67 $ 22.17Master Painter $ 19.41 $ 20.43 $ 20.95 $ 21.45Stainless Steel Welder Fitter $ 19.25 $ 20.27 $ 20.78 $ 21.29Coach Technician $ 18.71 $ 19.74 $ 20.25 $ 20.75Bodyperson $ 17.68 $ 18.71 $ 19.23 $ 19.74Assembler $ 17.67 $ 18.70 $ 19.22 $ 19.73Line Mechanic $ 17.67 $ 18.70 $ 19.22 $ 19.73Paint Prepper $ 17.67 $ 18.70 $ 19.22 $ 19.73Material Controller $ 17.67 $ 18.70 $ 19.22 $ 19.73Utility Person $ 15.87 $ 16.90 $ 17.40 $ 17.92

Employees who are permanently assigned to the classification ofInspector and perform road test function will receive a premium of.50 (50 cents) per hour above their hourly rate for each hourworked.

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ARTICLE 19

Hours Of Work

It is expressly understood and agreed that the provisions of thisArticle are intended only to provide a basis for calculating timeworked and computing overtime and shall not be considered aguarantee as to the hours of work per day or per week, the days ofwork per week, or the scheduling of such hours except as may bestipulated elsewhere in the Agreement.

It is the responsibility of every Employee to ensure that they are attheir workstations and prepared to start work at the times referredto in this Article.

Changes To Schedule

Subject to 8.0 above the normal workweek shall be forty (40) hourper week, eight (8) hours per day, Monday to Friday. Any shiftschedule changes in the normal hours of work shall be by mutualAgreement between the parties before implementation.

The normal scheduled work hours shall be on a three shift operation;Monday to Friday inclusive.

Dayshift 7:30 a.m. to 4:00 p.m.Afternoon 4:30 p.m. to 1:00 a.m.Night Shift 10:30 p.m. to 7:00 a.m. (Commences on Sunday nightat 10:30 p.m. – deemed to be a Monday shift)

Should the Company decide to go to a plant wide three (3) shiftoperation, the Company will meet with the Union for the purposeof mutually agreeing on the shifts and breaks.

Breaks

Employees shall receive two (2) fifteen minutes paid and one thirty(30) minutes unpaid break during the work day and five (5) minutes

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paid shop clean up time at the end of each shift.

Where work is carried out on Saturdays and Sundays which is 6hours in duration or less but more than 4 hours there shall be two(2) fifteen (15) minutes paid breaks. Should the shift be 8 hours induration then the normal breaks will apply as in Section 8.0. Lessthan 4 hours but more than 2 hours in duration there shall be one(1) fifteen minute paid break.

When an Employee agrees to work such overtime he or she shallreceive a 15 minute paid break before commencing the overtimework provided the overtime is scheduled to be at least two (2)hours in duration. This also applies to pre shift overtime if it is atleast 2 hours.

Should the Employee wish to leave the property during the thirty(30) minutes unpaid break, he or she may do so and he or shemust clock out and clock in on his or her return.

Notice Of Absence

When an Employee is unable to attend work, the Employee mustcontact his or her supervisor as far in advance as possible of hisor her scheduled start time, giving the reason he or she is unableto attend work and the date of his or her expected return. Regularcontact with the Employer shall be maintained during the period ofabsence. If the Employee cannot contact his or her supervisor heor she must contact the Human Resources Department. AnEmployee may be required by the Company to substantiate thereasons for any absence, provide his or her expected date of return,and his or her limitations. Employees must notify the Company ofany change of residence, telephone number or Personal status.

Employees who are absent without approval and do not contactthe Company for more than three (3) regularly scheduledconsecutive work days or an Employee who fails to return from anapproved leave of absence or an approved extension of the originalleave and does not contact the Company will be deemed to have

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terminated their employment with the Company, unless theEmployee produces evidence that such prolonged absence wasjustified.

Automatic Absenteeism Recording

If the Employee is unable to contact his or her Supervisor or theHuman Resources Office, he or she will use the automatictelephone call in system:Telephone (905) 403-7832Press Option 4Press Option 1Promptly give the following information:Name, Clock #, Supervisors Name, Shift, Late or Absent, Reason,When expected to return

Time Keeping

The Employee will be deducted 6 minutes for each one tenth (1/10) of the registrated time after the regular shift starting time asregistered by the Employees swipe card.

No Employee shall use another Employee’s swipe card, failure toclock in or out may delay payment. Employees must swipe in andout within their own department.

Direct Deposit

All Employees will be paid only by the direct deposit method andpay stubs will be issued to the Employee. Should it be necessaryto issue cheques to individual Employees, identification is requiredto be produced when requested by the authority who handlescheque or stub distribution.

Shift Premium

Employees will receive a ninety cents (.90¢) per hour shift premiumfor all hours worked on afternoon shift or one dollar ($1.00) per

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hour if and when a night shift is implemented. Shift premiums willnot be pyramided with other premium payments.

Overtime

In this Article, “overtime” means an authorized period of workcalculated to the nearest one tenth of an (1/10) hour, as the casemay be and for regular full-time Employees shall be paid for allactual hours worked in excess of the Employees normal scheduledshift, or on the Employees’ scheduled day(s) off.

Authorized work in excess of the Employees normal scheduledshift shall be compensated at time and one-half (1½) theEmployee’s regular straight time hourly rate.

Authorized work on Saturdays which is not part of the Employee’snormal work week will be paid at (1 1/2) one and a half times theEmployees regular straight time rate.

Authorized work on Sunday, which is not part of the Employee’snormal work week, will be paid at two times (2X) the Employee’sregular straight time hourly rate.

Where an Employee is required to perform work on one of thestatutory holidays, he or she shall be paid two (2) times his or herregular straight time hourly rate for all hours worked, in addition tohis or her regular pay for the holiday.

The parties to this Agreement recognize the needs of the businessmay require the performance of overtime work from time to time.Employees shall be paid only for those hours actually worked andassigned as per their schedule.

Should the Employee who works pre shift overtime hours get injuredand have to be released, he or she will be paid the agreed overtimehours plus the balance of his or her regular scheduled shift.

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Overtime Procedure

Overtime work shall be on a voluntary basis and it is mutually agreedthat when overtime work is scheduled by the Company, it shall bedistributed in an equalized manner amongst the Employee in theclassification usually performing such work. However, the Companyrecognizes the equity of maintaining minimum differentials in theovertime hours amongst all Employees within a classification.

The overtime roster will be maintained by classification andsupervisory group within the Department and will be openlydisplayed in the work area, so that Employees may check theirrespective standing.

Notice of overtime opportunities must be given at least two (2)hours before shift ends for an extended shift, or in the case ofweekend work such as Saturday, Sunday or a holiday, the worknotice for overtime work must be given by 12:01 p.m. on the Fridayprior to the weekend. Overtime will be offered to Employees whoare actually at work at the time such request is made.

The Employees with the least credited overtime hours in theclassification will be offered the overtime opportunity first.

Any Employee who changes classification, department or shift shallbe credited with the average number of hours in the classificationto which he or she enters. Equalization charts will be re-set to zeroeach January.

Any Employee placed on an overtime roster to hire, recall,reclassification or return from sick leave is to be charged with theaverage number of hours charged against the Employees in thework area who are in the same classification.

Where the overtime opportunity is lost to the classification (ie. AWelder doing Master Painter overtime), the Employee will beentitled to payment as if he or she had worked the overtimeopportunity.

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If the Employee has been bypassed in the administration of anequal opportunity, arrangements will be made by the Company tooffer the equivalent amount of overtime within one (1) week periodfrom the date of complaint, or pay the Employee the amount owedas if he or she had worked the overtime opportunity.

The overtime procedure will not apply to Employees who are:

(a) on W.S.I.B., modified duties, absent for any reason andhave not booked back to work before the overtime hasbeen assigned.

(b) For those Employees who are subject to the 45 day trialperiod or on probation, they shall have no seniority rightsfor the purpose of working overtime, and will be placedon the bottom of such agreed list unless there are noother Employees available under the establishedovertime criteria specified in this Article.

(c) after lists have been exhausted then the Employer maycontact any Employee available in the classification.Failing that may contact any available Employee.

(d) On vacation which means an Employee may workovertime on the Saturday and Sunday preceding his orher vacation but may not work on the Saturday andSunday following the week of his or her vacation.

Meal Allowance

When an Employee works three (3) hours and over of overtimeimmediately following a normal work shift, a meal allowance offive (5) dollars may be claimed by the Employee. No receipts willbe required to make such a claim but all time will be recorded inthe proper manner.

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Reporting Pay

An Employee who reports to work at the correct time for his or herregular scheduled shift and no work is available because ofcircumstances beyond the direct control of the company will beguaranteed 4 hours pay at his or her regular straight time rateirrespective of the actual hours worked when less than 4 hours.This Article is not intended to be used to erode Article 11 – Layoffand Recall. If an Employee agrees and reports for work outside ofhis or her normal scheduled shift and no work is available he orshe shall be guaranteed four (4) hours at the applicable overtimerate.

Call Back

An Employee called back to work after completing his or her shift and afterhaving clocked out shall be provided with a guarantee of four (4) hourswork at the applicable overtime rate from the time he or she reports.

ARTICLE 20

Holidays and Holidays Pay

Employees shall be paid their regular wages at straight time forstatutory holidays, providing that the Employee is not absent fromwork either on the workday immediately preceding or the workday immediately following the holiday. Employees who arrive lateat work and provide the Company with an explanation shall bedeemed to be qualified. It is further provided that an Employeewill be paid for such holiday if he or she can supply the Companywith supporting documentation outlining the reason for his or herabsence on either the workday before or the workday after theholiday.

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2003 Holiday Shutdown – December 24, 2003 to January 1,2004 (inclusive) returning to work on Jan. 2, 2004.2004 Holiday Shutdown – December 24, 2004 to January 3,2005 (inclusive) returning to work on Jan. 4, 2005.2005 Holiday Shutdown – December 24, 2005 to January 2,2006 (inclusive) returning to work on Jan. 3 2006.

Employees on sick leave for twenty (20) calendar days or lessimmediately preceding or including a paid holiday will be paid thedifference in pay for the holiday up to 100%. SuspendedEmployees and laid off Employees are not entitled to holiday pay.

Where a prior approved leave of absence is given on the qualifyingday, the last day worked (or next day worked, what ever the casemay be) shall become the qualifying day.

If the Canadian Government or the Provincial Government ofOntario proclaims an additional Statutory Holiday during the termof this Agreement for the Employees covered by this Agreementshall observe this holiday over and above the agreed number ofholidays then this Article will be amended to provide such additionalpaid holiday.

Where an Employee requires the qualifying day as leave due toan emergency, the qualifying day shall be the last shift prior to (orafter) the qualifying day.

Birthday with Pay

Upon completion of the probationary period, an Employee shallbe entitled to one day (8 hours) off with pay on the Employee’sbirthday. To be entitled to the day off with pay, an Employee mustbe employed by the Company on the actual birthday. Should thisday fall on an Employees non-working day, it shall be rescheduledfor their next regular scheduled shift. Employees shall be requiredto fill out a form in advance of the Birthday for administrationpurposes.

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ARTICLE 21

Vacation with Pay

Vacation time off with pay is granted to eligible Employees andthe amount of vacation to which the Employee is entitled isdetermined by length of continuous service based on the lasthire date. Employees who were employed with Ontario BusIndustries Inc. and who accepted employment with Orion BusIndustries Ltd. with no break in service, shall be credited withOntario Bus Industries service for the purpose of determiningvacation entitlement.

The vacation credit year begins July 1st of each year and continuesfor a twelve month period to June 30th of the following year. Duringthis period, the Employee earns the credits to which he or she isentitled to use as vacation during the vacation take year (paidentitlement). The vacation take year is the period in which theEmployee is entitled to take vacation time off and begins July1st immediately following the vacation credit year.

Vacation credits will accumulate in the form of days per monthbased on continuous service and the Employee’s regularlyscheduled workweek of 40 hours.

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Continuous Cumulative Earned Total NumberService Vacation Credit of Days per Year

(Hours) Per Month1 month (30 Days) 1 Day 1 day @ 4%2 months 2 Days 2 days @ 4%3 months 3 Days 3 days @ 4%4 months 4 Days 4 days @ 4%5 months 5 Days 5 days @ 4%6 months 6 Days 6 days @ 4%7 months 7 Days 7 days @ 4%8 months 8 Days 8 days @ 4%9 months 9 Days 9 days @ 4%10 months max 10 days @ 4%Anniversary of attainment of5 continuous years of Service max 15 days @ 6%Anniversary of attainment of8 continuous years of service max 20 days @ 8%Anniversary of attainment of15 continuous years of service max 25 days @ 10%Anniversary of attainment of20 continuous years of service. max 30 days @ 12%

An Employee’s continuous service will be adjusted on eachanniversary date of hire. When the Employee attains the nextband of continuous service awarding additional vacation credits,these credits are applied to the next year’s vacation entitlementin the vacation take year.

During the first calendar year of employment, all Employees mustearn vacation credits in order to be eligible for vacation time offwith pay in the following calendar year (Vacation Take Year).

However, the Employee may request a leave of absence withoutpay for vacation purposes, during the first calendar year ofemployment. If approval is given by the Employee’s supervisor,an unpaid leave of absence may be granted of up to ten (10)working days for the purpose of unpaid vacation leave of absence.Vacation credits will accumulate during such leave of absence

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for vacation entitlement in the following calendar year.

In the second year of employment, paid vacation entitlement willreflect credits earned in the first year of employment. Shouldearned credits not equal at least ten (10) working days, theEmployee will be granted vacation time off with pay and a leaveof absence without pay for a maximum total period of ten (10)working days.

Should employment with Orion be terminated by either theCompany or the Employee, continuous service accumulation willcease on the last day of employment. Unused vacation will bepaid out at the Employees accrual percent.

Should the Employee not be able to take such excess vacationentitlement due to sickness and is receiving benefits under ShortTerm Disability, or Long Term Disability or is receiving benefitsunder the Workplace Safety Insurance, then such payment ofexcess vacation will be made at 100% of the applicable vacationpay. No carry-over of such excess vacation will apply.

An Employee who, while on annual vacation, become ill or isinjured, shall have the right to terminate his or her vacation andbe placed on weekly indemnity. An Employee who is again fit forduty shall immediately so inform the Company and will continuehis or her vacation. If the remaining vacation falls outside theEmployee’s scheduled dates, such vacation will continue for theapplicable time period.

If a statutory holiday falls during the Employee’s vacation timeoff, the Employee will extend their vacation by the time equal tothe statutory holiday.

Accumulation of credits includes, where applicable, any increasedue to attainment of next band of continuous service whichincreases entitlement of vacation credits for the next year.

All vacation time off must be reported and signed off by the

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supervisor and submitted to Payroll Department at the end ofthat pay period.

Used vacation time off will be recorded and will reduce vacationentitlement.

Vacation balance will be provided by the Payroll Department forthe supervisor’s reference.

It is the responsibility of the Employee to report any discrepanciesimmediately to the supervisor who will advise the PayrollDepartment of any amendments.

All Employees must take their full vacation entitlement beforeJune 30th of each vacation year. There shall be no carry over.

It is agreed that up to forty (40) hours per year of an Employee’sannual vacation entitlement may, at the sole and absolute discretionof the Employer, be converted up to five (5) single days, or portionsthereof, provided the Employee has a minimum of (120) hours (15days) vacation entitlement per year.

Such single day vacation will be considered as an individualoccurrence irrespective of how it is aligned with off days and/orother single day vacations, and as such will not impact on overtimeassignments involving off day work.It is agreed that the granting of such requests shall be solely on thebasis of the availability of manpower and business/servicesdemands and shall not result in an Employee pursuing a grievance.

All Employees will take the shutdown period of 2 weeks irrespectiveof whether they have the credits to do so, refer to Article 24.

All Employees who have in excess of the 2 weeks shutdown periodmust make a selection of the remainder of their vacation (less theentitlement of 5 single days - refer to Article 24) by March 31 of thepreceding take year. Where such selection is made it will be givento the most senior Employees. Where an Employee does not make

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a selection by March 31, he or she will go to the bottom of the listirrespective of his or her seniority. Any excess vacation not taken willbe forfeited except as stipulated in Article 24.

Vacation shutdown shall commence on the second last Saturdayof the month of July. Changes to the shutdown dates can be madeby mutual Agreement.

Calculation of Vacation Pay

Vacation payment will be based on the Employees percent ofgross earnings in the previous year. Gross pay shall include,regular earnings, vacation pay, overtime, statutory holiday, shiftpremiums, retro pay, pay in lieu, and payment of grievances.

ARTICLE 22

Pregnancy Leave

The Company shall grant a maternity leave of absence pursuantto the Employment Standards Act. Maternity leave of absenceapplies to female Employees who have completed thirteen (13)weeks employment when their leave begins.

A seventeen (17) week maternity leave of absence may be takennot more than seventeen (17) weeks immediately before theestimated date of delivery. For maternity leave, the Employeeshall also provide the Company with a certificate from a qualifiedmedical practitioner confirming that she is pregnant.

An Employee who is pregnant or nursing may request theCompany to modify her job functions or assign her to another jobas to continue any of her job functions may pose a risk to herhealth or that of the fetus or child. This request must beaccompanied by a certificate from a qualified medical practitionerindicating the risk.

In the event of disability caused by or resulting from pregnancy

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related complications or from miscarriage, the Employee will beentitled to make application for sick benefits under the benefitsplan.

All benefit coverage, as well as continuous service for the purposeof vacation credit accrual, pension, severance (where applicable)and accrual of seniority, shall be maintained while Employee ison maternity leave.

Upon an Employee’s return from maternity leave, the Employeewill be returned to their former position or be given comparableposition with comparable wages and benefits.

The Employee must give the Employer a minimum of four (4) weekswritten notice if he or she wishes to return early from the pregnancyleave.

If the Employee does not return from pregnancy leave on theexpected return to work day, the Employer shall notify the Employeeof the date of the end of the Leave of Absence and the expecteddate of return to work.

Parental/Adoption Leave

The Company shall grant a Parental/Adoption leave without payto an Employee pursuant to the Employment Standards Act.Parental/Adoption leave of absence applies to an Employee whois a natural or other new parent and who has completed theirprobationary period prior to the date that the leave is expected tocommence.

A “parent” is a man or woman who:

· Is the natural parent of a child;· Adopts a child· Becomes a step-parent

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Parental/Adoption leave may commence no later than fifty-two (52)weeks after the baby is born or the child first comes into a parent’scustody, care or control. Parental leave must be taken all at onetime and can last for a maximum duration of thirty-five (35) weeksin the case of birth mothers who take pregnancy leave or thirty-seven (37) weeks for all other new parents.

For the purpose of adoption leave, an Employee must advise theCompany in writing of his or her acceptance by the appropriateagency as an adoptive parent within thirty (30) days of suchnotification of acceptance. Supporting documentation mustaccompany all requests. All other parental leaves must providewritten notice at least two (2) weeks prior to commencement ofthe leave.

An Employee shall be granted three (3) working days leave withoutpay to attend the needs directly after the receipt of a child.

The Employee must give the Employer a minimum of four (4) weekswritten notice if he or she wishes to return early from the parentalleave.

All benefits coverage, as well as continuous service for the purposeof vacation credit accrual, pension, severance (where applicable)and accrual of seniority, shall be maintained while Employees areon Parental/Adoption Leave.

Upon an Employee’s return from Parental/Adoption Leave, theEmployee will be returned to their former position or be given acomparable position with comparable wages and benefits.

If the Employee does not return from parental leave on the expectedreturn to work day, the Employer shall notify the Employee of thedate of the end of the Leave of Absence and the expected date ofreturn to work.

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Birth of a Child

Upon completion of the probationary period, an Employee shallbe entitled to one day (8 hours) off with pay for the birth of theirchild. Such leave must be taken within seven (7) calendar daysof the birth of the child.

Bereavement Leave

An Employee shall be granted a minimum of five (5) regularlyscheduled consecutive work days leave without loss of pay andbenefits because of a death in his or her “immediate” family(spouse, mother, father, sister, brother, daughter, son).

An Employee shall be granted a minimum of three (3) regularlyscheduled consecutive work days leave without loss of pay andbenefits because of a death in his or her “immediate” family (father-in-law, mother-in-law, son-in-law, daughter-in-law, step-parent ofthe Employee or his or her spouse, step-children, step-brother,step-sister, grandmother, grandfather, grandchild, spouse’sgrandmother, or grandfather, ward or guardian).

In the case of vacation, entitlement under this language shall extendthe time off based on the applicable amount of time.

Where an Employee is required to administer bereavementresponsibilities or attend funeral, where the burial occurs outsidethe Province, such leave will be granted, not to exceed five (5)working days without pay.

In the event of the death of the Employee’s aunt, uncle, brother-in-law or sister-in-law, leave up to one (1) day shall be granted withoutloss of pay from the Employee’s regular straight time hourly ratefor attendance at the funeral or any bereavement service.

In the event of the death of any other relative not referred to in thisArticle the Employee may request a one (1) day leave of absence

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without pay. The Company will not unreasonably deny such leaveof absence.

Management may require verification of the bereavement forwhich the leave was requested.

If an employee is working on afternoon or midnight shift, he orshe shall be paid applicable shift premium on bereavement.

Jury Duty Leave

The Company will make up the difference between the amount ofmoney per day an Employee received while serving as a memberof a jury, including coroner’s juries or subpoenaed as a witnesswhere such subpoena is directly related to the Company (pay shallinclude any pre-scheduled overtime), to an amount equal to thenormal eight (8) hours pay which he or she would have been eligibleto receive for working that day.

An Employee who, by reason of any summons, subpoena, writ,petition or other legal process is required by law to do anything,shall be granted an immediate leave of absence without pay forthe period of time required for such Employee to complete anythingthat the Employee is required to do by reason of any suchsummons, subpoena, writ, petition or other legal process and theEmployee shall retain and accumulate seniority and benefits whileon such leave of absence.

The Employee must provide the Company with supportingdocumentation in order to qualify for the appropriate pay andleave of absence.

Leave of Absence

Informal Leave of Absence:Informal leaves of absence are those for the period of ten (10)workings days or less, and may be granted without pay and withoutloss of seniority and all benefits to any employee requesting such

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leave for good and sufficient reason. Such request to be in writingand will be submitted to the employee’s supervisor for approval.Such approval shall not be withheld unjustly.

An employee will not be given leave of absence for the purposesof other gainful employment, nor will an Employee engage in anyactivity that may result in a conflict of interest with his or heremployment.

Formal Leave of Absence

A formal leave of absence without loss of seniority and all benefitsfor good and sufficient reason shall be granted without pay for aperiod not exceeding up to ninety (90) calendar days upon writtenrequest to and upon receiving written approval from the HumanResources Department. A formal leave of absence may beextended upon receiving written approval from the HumanResources Department.

All requests for leave of absences will be responded within five (5)working days. Such approval shall not be withheld unjustly.

Emergency Leave

An employee can take an unpaid emergency leave of absence forthe following reasons:

· Personal illness, injury or medical emergency;· Death, illness, injury, medical emergency or other urgent matter

relating to a spouse or same sex partner;· A parent, step-parent, foster parent, child , stepchild, foster child,

the employee’s spouse or the employee’s same –sex partner;· The spouse or same-sex partner of an employee’s child;· A brother or sister of the employee; and· A relative of the employee who is dependent on the employee

for care or assistance.

An emergency leave of absence can last up to 10 days a calendar

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year. These days don’t’ have to be taken consecutively.

If an employee takes only part of a day, the employer can count itas a full day of leave.

The employee must notify the Company that they are taking anemergency leave of absence and fill out the appropriate paperwork.

The Employer is allowed to ask an employee to provide proof thathe or she is eligible for an emergency leave of absence. Theemployee is required to provide proof that is reasonable in thecircumstances.

An employee can not pyramid other benefits available under theCollective Agreement.

Citizenship Leave

An Employee is entitled to a paid leave at his or her regular rate ofpay up to four (4) hours for the purpose of obtaining CanadianCitizenship.

The Employee must notify his or her immediate supervisor withfive (5) days notice and submit documentation to support therequest.

Public Office Leave

Any seniority Employee elected to public office (Municipal,Regional, Provincial or Federal) shall, upon written application tothe Senior Human Resources Manager, be granted a leave(s) ofabsence for the period of time necessary to fulfil the duties of suchoffice during the Employee’s first term of active service in suchelective office, providing that the Employee’s seniority is equal toor greater than the period of time which is required. Additionalleaves of absence for service in elective public office may begranted at the option of the Senior Human Resources Managerupon written application by the Employee.

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Where a 1285 Local official is elected or appointed to a full-timeUnion term of office, a leave of absence shall be granted withoutloss of seniority and without pay or benefits. On completion of theleave he or she shall return to his or her former classification or toone that is comparable if his or her original classification does notexist.

Education and Paid Education Leave

Training, Retraining and Refresher Courses:

Training, retraining and refresher courses shall be given duringregular working hours at straight time rate. In the event that training,retraining and refresher courses take place outside an Employee’sregular working hours, he or she shall be paid applicable overtimerate for these hours.

When the Company determines that training is required, theCompany shall not withhold training opportunities to any employeewho has indicated a desire to learn the work of other classifications.For this purpose, applicants for such training shall be selected inorder of seniority.

In the event of the introduction of a new process, machinery orequipment, where new or greater skills are required than arealready possessed by affected Employee, such Employee shallbe provided with the required amount of training, during his or herhours of work with full pay. No Employee will be assigned to a newmachine or equipment to service, without the proper establishedtraining.

The Company will pay for all approved reasonable expenses toEmployees who are required to attend Company’s training,retraining or refresher courses at locations other than their workbase.

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Union Paid Education Leave

The Company agrees to pay into a special fund four cents ($.04)for actual hours worked for the purpose of providing paid educationleave. Said paid education leave will be for the purpose ofupgrading the Employee skills in all aspects of Trade Unionfunctions. Such monies to be paid on a quarterly basis into a trustfund established by the National Union, CAW and sent by theCompany to the following address:

CAW Paid Education Leave Program205 Placer CourtNorth York, ON M2H 3H9

The Company further agrees that members of the Bargaining Unit,selected by the Union to attend such courses, will be granted aleave of absence without pay for twenty (20) days class time (andtravel time without pay), said leave of absence to be intermittedover a twelve (12) month period from the first day of leave.Employees on said leave of absence will continue to accrueseniority and benefits during such leave. Refer to Article 7 for theLeave Procedure.

The Company agrees to pay for 100% of tuition for courses thatdirectly relate to the work that the Employee is currently doing.Application for reimbursement must be made and approved priorto registering for such a course. Upon approval, the Company willpay 50% of the tuition after receiving documentation of registrationand 50% upon receiving documentation that the course has beensuccessfully completed and the Employee received a passinggrade.

Social Justice Fund

The Company agrees to pay into a special fund, one ($.01) centper hour, employees for all compensated hours for the purpose ofcontributing to the CAW Social Justice Fund. The Fund is aregistered non-profit charity, which contributes to Canadian and

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International non-partisan, non-environmental relief anddevelopment organizations. Such monies are to be paid on aquarterly basis into the Fund established by its Board of Directorsand sent by the Company to the following address:

CAW Social Justice Fund205 Placer CourtToronto, OntarioM2H 3H9

ARTICLE 23

Health and Safety

The Employer shall continue to make all reasonable provisions forthe maintenance and enhancement of safe, sanitary and healthfulconditions for its Employees during the hours of their employment.To this end, the Safety Committee shall act accordingly. The Unionshall undertake to assist the Management maintaining such healthand safety related programs.

Necessary safety devices and other equipment required for thepurpose of protecting Employees from injury shall be provided bythe Company. Employees shall be responsible for the proper careand maintenance of such equipment and shall use or wearprotective devices or clothing in the proper manner as required bythe Employer, Manufacturers Data sheets and the regulations ofthe Occupational Health and Safety Act for IndustrialEstablishments.

In an effort to promote the safety, health and welfare of allEmployees, both parties recognize the need of full co-operationof all Employees in complying with the Health and Safety rules andregulations relative to the use of shop equipment, premises andconduct.

The parties to this Agreement shall or maintain a Joint Health andSafety Committee for a work place or a part thereof, and may, in

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such an order, provide for the composition, practice and procedureof any Committee so established.

(a) It is our firm belief that through joint education programs, jointinvestigations of problems, and joint resolution of thoseproblems, the workplace will be made safe and healthy for allEmployees.

(b) The parties acknowledge that the proper functioning of theJoint Health and Safety Committee can only be carried outwhere the Representative of the Employer and of the workersare committed to these responsibilities. To effect this, theparties to this Agreement undertake to make decisions thatwill be carried out by their respective organizations.

(c) The parties hereto agree in good faith and agree to promoteand assist the Joint Health and Safety Committee wheneverand wherever possible.

Structure Of Committees

(a) The Joint Health and Safety Committees (referred to hereafteras “the Joint Committee”), shall consist of 3 members selectedby the Employer and 3 members selected by the Union.Alternates may be allowed, however they shall only be used inabsences of the member and with the approval of the Co-chairpersons. Each party will supply a listing of one (1)alternate for each Committee member. Certification trainingfor the Union Representative(s) will be conducted by theWorkers Health and Safety Centre. The co-chairperson andanother member of the Union Health and Safety Committeewill work a regularly scheduled day shift, Monday to Friday.One member of the Union Health and Safety Committee willwork a regularly scheduled afternoon shift, Monday to Friday.

(b) The Committee shall meet at least once every 2 months on aregularly established schedule. Should any emergencysituation arise that requires a special meeting, it shall be

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arranged by the two co-chairpersons of the Committeeinvolved, in consultation with the Health and Safety Officer.

(c) There shall be two (2) Co-chairpersons, one (1) from theEmployer and one (1) from the Employees appointed for aminimum period of twelve (12) calendar months who shall chairalternate meetings. The parties agree that the members shallserve a minimum of 2 years.

(d) A Co-chairperson may, with the consent and approval of his orher counterpart, invite any additional Person(s) to attend themeeting to provide additional information and comment, butthey shall not participate in the regular business of the meeting.

Functions of the Joint Committee

To attain the spirit of the Occupational Health and Safety Act, andthe provisions of this Agreement, the functions of the JointCommittee shall be:

(a) to identify, evaluate and recommend a resolution of all matterspertaining to health and safety in the workplace to appropriatemanagement.

(b) to encourage adequate education and training programs inorder that all Employees are knowledgeable in their rights,restrictions, responsibilities and duties under the OccupationalHealth and Safety Act and this Agreement.

(c) the Joint Committee will address matters related to DesignatedSubstance Regulations and WHMIS where applicable.

(d) to deal with any health and safety matters that are absoluteand solely in and of the workplace and deemed appropriateby the Committee.

(e) all functions and powers pursuant to the Occupational Healthand Safety Act, and provisions of this Agreement.

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Inspections

(a) One member of the Committee who represent Employees andone management Employee designated by the Company shallinspect the physical condition of the workplace. Theworkplace inspection shall be conducted at a scheduled timemutually agreed to between the regular scheduled Committeemeetings.

(b) All health and safety concerns raised during the physicalinspection will be recorded on an appropriate workplaceinspection form and signed by both members of the inspectionteam.

(c) The workplace inspection form will be forwarded to the JointCommittee, Union Office, Management and HumanResources within five (5) days of the workplace inspection.The section Manager or his or her designee will inform theCommittee of the status of the outstanding items within twenty-one (21) days of receiving the Committee’s recommendations.

Recommendations of the Joint Committees

(a) The section Manager or his or her designee will communicatein writing within twenty-one (21) days to the Co-chairpersonswith regard to minuted recommendations of the Committeeby giving their assessment of the problem, and outlining whois responsible for solving the matter, along with a time framein which the matter will be resolved. A copy will be forwardedto the Human Resources Safety and Training Officer and theUnion office.

Accidents and Accompaniment

(a) The Joint Committee will designate members and alternates,if required, (and notify Human Resources of designates andalternates as of January 1, annually as necessary and whenany changes occur) to investigate all serious workplace

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accidents, and incidents that have the potential for a seriousaccident. The inspection team will be responsible foroverseeing that the requirements prescribed in Section 25and 26 of the Act and Sections 5 and 6 of the Regulations forIndustrial Establishments are carried out.

(b) The Joint Committee will designate two (2) members and/oralternates, if required, (and notify Human Resources ofdesignates and alternates as of January 1, annually asnecessary and when any changes occur) one fromManagement and one from the Union, to accompany theMinistry of Labour Inspector while carrying out MinistryInspections of the workplace.

(c) The members of the Committee representing Employees shalldesignate a member and/or alternate (s), if required, (and notifyHuman Resources of designates and alternates as of January1, annually as necessary and when any changes occur) toattend work refusal investigations. Findings of suchinvestigations will be given in writing to the Safety Committeewith copies to Management, Human Resources and the UnionOffice.

Minutes of Meetings

(a) Management will provide a suitable meeting room and a non-participating Committee secretary for the meetings, to takeminutes and be responsible for having the minutes typed,circulated and filed within one (1) calendar week of themeeting. Minutes of the meetings will be reviewed, editedwhere necessary and signed by the Co-chairpersons, prior todistribution. The original will be retained in Human Resources,and copies provided to the Union office and appropriateManagement Personnel prior to posting in appropriatelocations. Minutes of Meeting and agenda items will beidentified by a reference number and be readily available in aproper filing system. Names of Committee members will notbe used in the minutes except to record attendance.

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(b) A quorum of a minimum of two (2) Employee and two (2)Employer Representatives is set for the Committee.

Payment for Committee Members

A member of a Committee shall be deemed to be at work whileperforming Committee duties prescribed herein or by the Act, andshall be paid by the Employer at the regular or premium rate asmay be proper.

Meeting Agenda

(a) The Co-chairpersons will communicate and prepare anagenda and forward a copy of the agenda to all Committeemembers at least one (1) week in advance of the meeting.Members who wish to have items added to the agenda shallgive the chairperson reasonable notice.

(b) The Committee may accept any item as proper for discussionand resolution pertaining to health and safety. The Committeemay not make applications to amend, alter, subtract from oradd to, any terms of the Collective Bargaining Agreement.All items raised from the agenda in meetings will be dealtwith on the basis of consensus rather than by voting. Formalmotions will not be used.

(c) All items that are resolved or not will be reported in theminutes. Unresolved items will be minuted and placed onthe agenda for the next meeting.

(d) Employee members of the Joint Committee shall be provideda minimum of one (1) hour preparation time prior to eachregularly scheduled meeting of the Joint Committee.

General

(a) All Employees shall discuss their problems with their

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immediate Supervisor before bringing it to the attention ofthe Committee.

(b) Committee members will thoroughly investigate allcomplaints to get all the facts and will exchange these factswhen searching for a resolution to the problem. All problemresolutions will be reported in the minutes.

(c) Medical or trade secret information will be kept confidentialby all Committee members.

(a) Adequate training will be provided to all JointCommittee members as agreed necessary by theCompany and the Union. The Company shall bear thecost of such training.

Footwear

Employees who, as a normal part of their duties shall wear theappropriate foot protection.All protective footwear shall comply with CSA Standards - greentriangular patch (grade 1 protection).

Maintenance Electricians are required to have electrical shockresistant soles, which are designated by a white rectangular patch,in addition to the green triangular patch.

The Company will provide for the purchase of safety footwear (CSAapproved) for one (1) pair of safety footwear up to $135.00 everytwelve (12) months.

Probationary Employees, upon hire, must supply and wear safetyfootwear where applicable, and will not be eligible for suchsubsidized amounts until the probationary period is completedwhen they will be reimbursed with proof of purchase during theirprobationary period.

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Protective Clothing

Employees are to wear safety hats where designated. Safety hatsworn must meet the CSA Standards and will be supplied by theCompany at no cost to the Employee and may be replaced asrequired or when damaged.

The Company shall supply 5 pairs of coveralls each year toEmployees and clean 2 pairs each week at no cost to theemployee. The employee at their option (except Welders) mayelect to choose 5 sets of long sleeve shirts and pants. Suchelection must be for a period of 3 years. Such coveralls or shirtsand pants remain the property of the Company. All extra coverallsto be returned to the Company. In areas that use compounds orchemicals, which require special cleaning techniques, theCompany agrees it will provide Company maintained coveralls.On termination, Employees are expected to return the coveralls orshirts/pants or be assessed fifty percent (50%) of the cost.

Eye Protection

All Employees working in areas covered by the Mandatory EyeProtection Program shall wear the safety glasses. The Companywill issue non-prescription safety glasses. The Company shall bearthe full cost for supply and servicing of all safety eye wear unlessthe loss or destruction is due to negligence on the part of theEmployee whereby the Employee will be charged $4.00 for eachsubsequent issue. Lenses and/or frames in prescription safetyglasses shall be replaced once every two (2) years upon applicationto the Human Resources office. Employees required to wearprescription lenses will submit their prescription to the approvedCompany supplier or a supplier of their choice. Should theEmployee choose their own supplier, the Employee shall submit areceipt of purchase to the Company for reimbursement. Suchreceipt shall identify the glasses as safety glasses.

The Company will contribute $200.00 once every 24 months forsingle vision lenses and up to $300.00 every 24 months for bifocal

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or trifocal lenses. Glasses need to comply with Canada CSAStandards.

Whenever an Employee’s prescription safety glasses are brokenor damaged as the result of a work related accident, the Companyshall consult the Workplace Safety and Insurance Board and shallreplace the glasses at no cost to the Employee.

Medical Surveillance

The Company recognizes its obligations to provide a healthfulworking environment for the employees as required by law. TheCompany also recognizes its obligations to operate in compliancewith Federal, Provincial and Municipal environmental laws andregulations.

In accordance with legislation, the Company will provide toemployees medical services and physical examinations includingaudiometric and lung function examinations at a frequency andextent necessary to determine whether the health of suchemployees is being adversely affected. Such services will be atno cost to the employee and will be provided to the affectedemployees in accordance with legislation. The Company willprovide to each employee a complete report of the results of anysuch tests or examinations and will review the result with theemployee.

Tests & Affected Employees:

Audiometric – This testing will be conducted annually for allemployees.

Isocyanate (lung function) – This testing will be conducted everysix (6) months on all employees who work in the Paintshop and allMaintenance employees who maintain the Paintshop.

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Reporting Injuries

All accident injuries, no matter how slight, must be reported to theEmployee’s supervisor as soon as possible on the day of theincident. Failure to do so may affect any medical or compensationpayments. Puncture wounds and eye injuries must be treatedimmediately at first aid. The instructions of the First Aid Attendant/Nurse must be followed. Employees must contact the OccupationalHealth Nurse on the first day of any lost time claim and maintainregular contact during the absence.

An Employee who sustains an occupational injury at work and isnot able to complete the rest of the shift shall be paid for thebalance of the shift (this shall include scheduled overtime shifts).The injured Employee shall, at the Employer’s expense, betransported to a hospital or a doctor, whichever is necessary,consistent with the provisions of the Workplace Safety andInsurance Act (WSIA).

The Employer and the Employee will maintain contact throughoutthe period of the Employee’s injury and recovery; and theEmployer and the Employee will cooperate to identify suitableand available employment consistent with the Employee’sfunctional abilities, in accordance with the requirements of theWSIA.

Housekeeping

Good housekeeping is one of the best ways to prevent injury.For this reason, the Company requires the highest standards ofcleanliness and order throughout the facility. Every effort shouldbe made to keep workplaces clean.

Check the work area at the start of the shift for safety hazards.Remove them or report them to the Supervisor, and keep thework area free of hazards during the shift.

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Fire Prevention

It is the duty of every Employee to protect himself/herself and hisor her fellow workers from fire and explosion.

Orion Bus Industries Ltd. is a smoke-free facility. There will beno smoking within Company facilities.

Smoking shall take place in designated outdoor locations andduring designated breaks and lunch periods only.

The parties shall in no way condone the actions of anyone foundsmoking within the facility.

Humidex Heat Stress Plan

The employer will adopt the Humidex Heat Stress Plan as outlinedbelow:

When the Humidex reaches 35 degrees C the following measuresare to be followed:

1) Employees are encouraged to monitor the pace in which theyperform their duties and reduce the physical demands onheavy jobs. Additional workers may be assigned to heavytask jobs to assist fellow workers.

2) Employees will be encouraged to drink much more water thannormal. Employees will be permitted to leave theirworkstations at anytime for the purpose of replenishing theirsystem with water.

3) Employees who feel that they have any symptoms of thefollowing must report to the Occupational Health Nurseimmediately:· Heat Rash· Heat Cramps· Heat Exhaustion· Heat Fatigue

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· Fainting· Heat StrokeThe above heat related list is comprised of various diagnoses,which may result from activities/working in a hot environment,each has presenting signs and symptoms that accompany it.

4) Employees are encouraged to establish a “Buddy System”for purpose of identifying the signs of heat stress in fellowworkers.

In addition to the above, the following measures are to be followedshould the Humidex reach 40 degrees C during the shift:

1) Employees will be provided with a 12 minute break duringthe last half of the shift (half way between lunch and the last15 minute break).

In addition to the above, the following measures are to be followedshould the Humidex reach 45 degrees C during the shift:

1) Employees will be provided with a 12 minute break duringthe first half of the shift (half way between the first 15 minutebreak and lunch).

Additional Responsibilities:

· One member representing the employees and one memberrepresenting management from the Joint Health and SafetyCommittee will be responsible for measuring the humidexlevel, from monitoring equipment that will be located in acentral location. The Joint Health and Safety Committee willdetermine the central location.

· The Company agrees to provide the Joint Health and SafetyCommittee time to train on the Humidex Heat Stress Plan asrequired.

· The Occupational Health Nurse shall meet with each

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department at the beginning of each summer to provideinformation on how to identify the signs and symptoms of heatstress.

· The Company will ensure that water fountains throughout theplant are maintained in good working order.

· Under the direction of the Occupational Health Nurse, theCompany will make available electrolyte replacement drinks.

· The Company will determine the number of industrial fans toassist in airflow in the plant.

· Breaks from the work area to an area that is away from theheat source to provide for relief of the effects of extreme heat.

ARTICLE 24

New Technology

· “New Technology” means machinery, equipment or methodsthat have been significantly changed relating to the introductionof new technology and are different in nature than thosepreviously used by the Company and that are new to theBargaining Unit and will have a significant impact on BargainingUnit Employees.

· The Company and Union recognize that it is to their mutualbenefit to ensure that the competitiveness of the organizationis maintained through the continued introduction of NewTechnology.

· Within thirty (30) days of ratification of the Collective Agreement,the parties will establish a joint Management/Union Committeecomprised of three (3) representatives of the Company andthree (3) representatives of the Union.

· The Committee will meet semi-annually and as required. When

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the decision to introduce New Technology has been made theCompany will notify the Union of its intention, and of theanticipated effect it will have on Bargaining Unit Employees.Such notification will be given two (2) months prior to theintroduction of any new technology.

· Where New Technology necessitates the acquisition of newabilities and knowledge, the Company will train and retrainEmployees, with preference being given to senior Employeesin the affected classification(s) in improving their classificationsin order to adapt to the technological change. In this regard,the committee is responsible for defining problems, developingsolutions to such problems, and recommending solutions tothe Employer.

· In the event that an introduction of technological changes wouldgenerate a surplus of Employees in excess of plantrequirements, the Company shall provide Employees with theopportunity to voluntarily transfer to vacant jobs within theCompany providing the Employee has the appropriatequalifications. In addition, prior to taking any action with regardsto surplus Employees, the Company will consider attrition (ie.retirements, resignations etc.) that will take place during theperiod prior to the implementation of New Technology.

ARTICLE 25

Plant Closure

Orion Bus Industries Ltd. and CAW Local 1285 agree that in theevent of a permanent plant closure, the employer will provide theUnion with 5 months notice. The information supplied to the Unionwill include the number of employees impacted and the rationalefor the decision. It is understood that the information will be usedfor discussions between the parties and will be consideredconfidential. The Union will have the opportunity to makeproposals, which could alter or modify the decision. Suchproposal must be made within 30 days of notification.

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If job losses become unavoidable and the Employer makes thedecision to permanently shutdown the operation, then thefollowing will apply.

Employees with 5 or more years of service but less than 8 yearsof service will receive 3 weeks base salary pay above theirentitlement set out in the Employment Standards Act.

Employees with 8 or more years of service but less than 15 yearsof service will receive 4 weeks base salary pay above theirentitlement set out in the Employment Standards Act.

Employees with 15 or more years of service but less than 20years of service will receive 5 weeks base salary pay above theirentitlement set out in the Employment Standards Act.

Employees with 20 or more years of service will receive 6 weeksbase salary pay above their entitlement set out in the EmploymentStandards Act.

Severance

Severance pay shall be in accordance with the EmploymentStandards Act and the Company agrees to recognize theEmployee’s current hire date (which includes service with OntarioBus) for severance purposes.

Adjustment Committee

The Company agrees to provide up to $35,000.00 for anadjustment committee at the time of plant closure.

ARTICLE 26

Workplace Harassment Complaint Procedure

The Company and the Union agree that there will be nodiscrimination, interference, restraint or harassment or coercion

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exercised or practiced by either of them, or by any of theirrepresentatives, with respect to any Employee because of his orher race, colour, marital status, creed, nationality or sex, on a countof religious or political affiliations or because of his or hermembership or activities or lack of membership or activities, inthe Union.

The Company and the Union agree that there will be nodiscrimination, interference, restraint or harassment or coercionexercised or practiced by either of them, or by any of theirrepresentatives with respect to any Employee because of age,sexual orientation, or disability, save and expect those limitationsas set out in the Legislation of the Province of Ontario.

The Company and the CAW are committed to providing aharassment free workplace. Harassment is defined as a “courseof vexatious comment or conduct that is known or ought reasonablybe known to be unwelcome”, that denies individual dignity andrespect on the basis of the grounds such as: gender, disability,race, colour, sexual orientation or other prohibited grounds. AllEmployees are expected to treat others with courtesy andconsideration and to discourage harassment.

The workplace is defined as any company facility and includesareas such as offices, shop floors, restrooms, cafeterias, lockers,conference rooms and parking lots.

Harassment may take many forms: verbal, physical or visual. Itmay involve a threat or an implied threat or be perceived as acondition of employment. The following examples could beconsidered as harassment but are not meant to cover all potentialincidents:

· Unwelcome remarks, jokes, innuendoes, gestures, or tauntingabout a Person’s body, disability, attire or gender, racial orethnic backgrounds, colour, place of birth, sexual orientation,citizenship or ancestry;

· Practical jokes, pushing, shoving etc. which causes

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awkwardness or embarrassment;· Posting or circulation of offensive photos or visual materials;· Refusal to work or converse with an Employee because of their

racial background or gender;· Unwanted physical conduct such as touching, patting, pinching

etc.;· Condescension or paternalism which undermines self respect;· Backlash or retaliation for the lodging of a complaint or

participation in an investigation;· Persistent leering (suggestive staring) or other obscene/

offensive gestures;

Harassment is not:

Harassment is in no way to be construed as properly dischargedsupervisory responsibilities including the delegation of workassignments, providing work instructions, the assessment ofdiscipline or any conduct that does not fall within the parametersof this policy. Neither is this policy meant to inhibit free speech orinterfere with the normal social relations.

Filing a Complaint:

If an Employee believes that they have been harassed and/ordiscriminated against on the basis of any prohibited ground ofdiscrimination, there are specific actions that may be taken to puta stop to it.

· Request a stop of the unwanted behaviour;· Inform the individual that is doing the harassing or the

discriminating against you that the behaviour is unwanted andunwelcome;

· It is advisable to document the events, complete with times,dates, location, witnesses and details;

· Report the incident to Supervisor/Committee Person.

However, it is also understood that some victims of discriminationor harassment are reluctant to confront their harasser or they may

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fear reprisals from the harasser, lack of support from their workgroup, or disbelief by their supervisor or others. In this event, thevictim may seek assistance by reporting the incident directly toany Union representative/Company official.

Investigation:

Upon receipt of the complaint, the Supervisor/Committee Personcontacted will immediately inform their Union or Companycounterpart. A representative from the Company and the Unionwill then interview the Employee if the complaint can be resolvedimmediately or if the complaint should be reduced to writing on theHuman Rights Complaint form or processed through anotherprocedure. Properly completed copies of this form will beforwarded to the Human Resources Manager and the Chairperson.

The Chairperson and the Human Resources Manager will thendetermine if the complaint requires a special investigative teamcomprised of both a Management and Union representativeappointed by the Company and Union respectively. The HumanResources Manager or his or her designate shall represent theCompany. In the event of a complaint involving sexual harassment,the investigative team, if possible, will be comprised of at leastone woman.

A formal investigation of the complaint will then begin. It may includeinterviewing the alleged harasser, witnesses and other Personsnamed in the complaint. Any related documents may also bereviewed.

Resolution:

The joint investigators will then complete the report on the findingsof the investigation and a copy of the completed Incident Reportwill be forwarded to the Human Resources Manager and theChairperson who will make a determination on an appropriateresolution. The Human Resource Manager and the Chairpersonwill attempt to resolve within ten (10) days and ensure the resolution

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is fair and consistent with the intent of the Company and theNational CAW policy regarding discrimination and harassment inthe workplace.

At the conclusion of this step, the complaint, if unresolved, will beinserted into the second step of the Grievance Procedure forresolution. In the event that the complaint is not resolved by theparties at the second step of the Grievance Procedure it may beappealed to arbitration in accordance with the provisions of theCollective Agreement. The parties agree that this procedure is analternate complaint procedure and as such complaints should notbe pursued through both the Grievance Procedure and the HumanRights Complaint Procedure.

The pursuit of frivolous allegations through the Human RightsComplaint Procedure has a detrimental effect on the spirit andintent for which this policy was rightfully developed and should bediscouraged.

All documentation is to be secured in a location agreeable to allparties. All information ascertained through this procedure shallbe kept confidential.

All Employees have a right to file a complaint with the ProvincialHuman Rights Commission and to seek redress under the HumanRights Code. However, the complainant shall pursue only oneavenue for redress (ie. Arbitration or the Human RightsCommission)

Training:

In consultation with the National Union, the parties agree to developan anti-harassment training program for all Employees during thelife of the contract. Hours for the training will be discussed with theUnion.

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ARTICLE 27

Pay Equity Plan

The Pay Equity Plan is prepared in accordance with the Act toprovide Pay Equity - and is for the Establishment known as OrionBus Industries Ltd. and CAW Local 1285.

All the Job Descriptions were evaluated on the basis of their currentjob content for Skill, Effort, Responsibility and Working Conditionsin accordance with Article 27 of the Collective Agreement and thePay Equity Act.

The Gender-Neutral Evaluation System used comprised thefollowing factors:

1. Knowledge gain by formal education and previous training.2. Knowledge gained by experience.3. Complexity of decisions and ingenuity required.4. Supervisor, training, management and advisory

responsibilities.5. Type of supervision received and limiting factors.6. Consequence of error.7. Stress8. Contacts9. Physical skills and effort.10. Working conditions.

ARTICLE 28

Medical Placements

Where it is established through an Employee’s family doctor thatan Employee has a medical disability through non-occupationalor occupational injury or illness which prevents him/her fromreturning to his or her original classification and job duties, he orshe shall return to another classification for which he or she is ableto do within his or her medical limitations. The Employee’s current

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seniority will be used in the new classification. The rate of payshall be red circled at the previously held classification or his orher new classification, whichever is greater.

· A doctor’s certification of disability by the Employee’s owndoctor will be submitted.

· An Employee placed on a job because of disability will havethat disability reviewed at least monthly in the case of atemporary disability or at least annually in the case of apermanent disability.

· All exceptions to the seniority provisions of the CollectiveAgreement must be mutually agreed by the Company and theUnion.

· Failing to resolve the question, the parties may by mutualAgreement refer the Employee to a clinic or physician, mutuallyagreed upon, whose decision with respect to whether theEmployee is or not able to do the job to which he or she isentitled in line with his or her seniority, shall be final and bindingupon the Union, the Employee involved and the Company. Theexpense of such examination shall be paid by the Company.

Physically Handicapped Employees

The Company will permit physically handicapped Employees theprivilege of ten (10) minutes early clock out where justified, to bedetermined by the Employee’s doctor.

Medical Certificates

When the Company requires verification, the Company mayrequest an Employee to provide a medical certificate from aqualified Medical Practitioner for medical absences of five(5) days or less. Such requests will not be made in adiscriminatory manner. The Company must make thisrequest during the absence and prior to the Employee’sreturn.

The medical certification must, as outlined below, state the

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following information:

(a) confirmation that the Employee is under doctor’s care;

(b) approximate return to work date and confirmation thatthe Employee cannot work;

(c) for return to work, that the Employee is now medically fitto resume either modified or his or her full duties.

Under the requirements of this Article, the Company will notaccept certificates that:

· are photocopies

An Employee shall provide the Company with a medical certificatefor absences of more than five (5) regularly scheduled consecutiveworkdays.

The Company will pay the cost of medical certificates if requestedby the Company for absences of five days or less. The Companywill pay the first $40.00 (per sick claim) for medical certificatesrequired for absences of more than five regularly scheduledconsecutive workdays (not WSIB claims). The Employee isrequired to provide a receipt for reimbursement purposes.

Employees must provide the Company with a medical certificateprior to returning to the workplace after being absent due to a WSIBclaim.

Surveillance

The Company and the Union recognize that every employee has areasonable expectation of privacy, while at work. The Companyagrees that the monitoring of production workers could violate theright to privacy. The Company also agrees and understands thatvideo cameras or similar systems shall not be used in the plant asa means to evaluate the performance of employees and to gatherevidence in support of disciplinary measures except for the purpose

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of protecting the Company’s property, employees or where apattern of theft justifies.

Substance Abuse

The Union and the Company jointly recognize substance use andabuse to be a serious medical and social problem that can besuccessfully treated. It is in the best interest of the Employee, theUnion and the Company to encourage early intervention andtreatment to assist Employees and members of their family towardsfull rehabilitation. Such assistance includes, but is not necessarilylimited to, identification of the problem at the earliest stages,motivating the individual to appropriate treatment and rehabilitationfacilities and a continuing education of Employees and Union andManagement representatives alike to recognize and dealconstructively with such problems as they arise.

Any Employee who undergoes a prescribed rehabilitationtreatment program under the supervision of their family doctor willbe entitled to Sickness and Accident Benefits in accordance withthe Sick and Accident Plan. An Employee’s seniority rights andbenefits to which he or she is entitled during such period shallcontinue.

The parties shall establish a joint Rehabilitation Committeeconsisting of two (2) representatives of the Union and two (2)representatives of the Company to deal with these problems inthe workplace. The Committee shall enjoy the full support of bothparties and shall be vested with the authority to makerecommendations.

In order to achieve the above objectives the Union and Companyrecognize that alcoholism and drug abuse are illnesses and shouldbe treated as such rather than as discipline problems. Theindividual Employee will be given every opportunity to rehabilitateand will not be subject to discipline without giving full considerationto the facts in the case of each individual and the circumstancessurrounding the incident otherwise supportive of discipline. This

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statement intent is subject to a standard of good faith on the partof the Company, the Union and affected Employees, and will notbe utilized by the Union or Employees to subvert the application ofotherwise appropriate disciplinary measures.

The Company and the Union express their joint determination todeal cooperatively and constructively with the problem of substanceabuse among Orion Bus Industries Ltd. workers represented bythe CAW.

An Employee who has an alcohol or drug abuse problem must beadvised in the presence of a Union official that the Employer isconcerned about the effect of this problem.

ARTICLE 29

Licences

Where an Employee requires a driving licence in carrying out hisor her duties and has his or her licence removed or suspended heor she must report such loss or suspension to his or her supervisorimmediately, failure to do so will result in immediate dismissal whenthe Company is so informed.

Loss of licences due to medical reasons will be treated as per themedical reassignment Article 28 – Medical Placement.

Where it is determined by mutual Agreement of the parties thatthe Employee may continue to perform all of the remaining dutieswithout affecting the operation of the Employer such an Employeemay remain in their classification.

Trade Licence Fees

The Company will pay the Trade Licence Fees for licences requiredby the Company and Government.

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ARTICLE 30

Employment Insurance Rebate

It is agreed that the amount of E.I. Commission Rebate moniesthat are due to each individual Employee shall be applied towardthe purchase of additional group benefits. Should improvementsin benefits not be made during the course of negotiations for anyCollective Agreement, the E.I. rebates will be paid to each individualduring the term of that Agreement.

ARTICLE 31

Photo Identification

From the date of hire, all Employees will be issued with a photoidentification card. This card must be worn or produced asrequired.

Parking

The Company will endeavour to provide parking spaces forEmployees vehicles as such the Company will not be responsiblefor the Employee’s vehicle or its contents.

Union Election:

The Company agrees that during the term of the Agreement, theelection of officers of the Union may be conducted on Companypremises (with written prior notice) under the following guidelines;

1) Actual voting shall take place during lunch periods or priorto commencement of a shift.

2) Time required by the election committee will be at theUnion’s expense.

3) The Union shall ensure that the voting process will bescheduled in a manner so as not to affect production.

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Candidates will be allowed to canvass during non-working hours.

Lunchroom, Washroom and First Aid

The Company in co-operation with the Union and Employees willmaintain existing lunchroom facilities, vending machines,microwave ovens, refrigerators, clean washrooms and first aidequipment.

April 28 – Day of Mourning

The Company agrees to recognize April 28 by lowering the flag tohalf and a one minute of silences at 11:00 am.

The Union and the Company agree that the Collective Agreementwill have table of contents and/or index with page and sectionnumbers indicated. Section should be divided according to subjectmatter and each section should be introduced by a heading.

Tools

The Company will on the signing of this Agreement supply alltools for new Employees and will replace existing Employeeshand tools when they are damaged or broken the company willdiscontinue the tool insurance for Employees. The Employee willbe responsible for any tools that are unaccounted for.

ARTICLE 32

Duration

The duration of this Agreement will commence on the ratificationby the members and shall not be retroactive.

This Agreement shall commence on April 1, 2003 and shall end atmidnight on the 31st day of March 2006 and shall continue thereafterfrom year to year unless either party gives notice in writing to theother party during the last one hundred and twenty (120) days of

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the term of this Agreement of the parties intention to terminate ornegotiate revision thereto. Where notice is given by either party inwriting as referred to above, negotiations shall commence not laterthan thirty (30) days after the date of such written notice.

In witness whereof the parties hereto have executed thisAgreement as of the first day of April 2003.

Orion Bus Industries Ltd.: CAW Local 1285:

____________________ ____________________Craig Haswell Director, Donald Pallas, ChairpersonHuman Resources

_________________________________________ Isaac Mensah, Committee PersonChris Crassweller Manager,Corporate and Legal Affairs ____________________

Barry Marsh, Committee Person

____________________A. Bernardo SousadiasCommittee Person

_____________________ ____________________Rick Solon President Peter Dunbar

Skilled Trades Committee Person

____________________Vince Bailey President,Local 1285

____________________Munir KhalidC.A.W. Toronto Area Director

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SKILLED TRADES

1) The purpose of this Article is to define the skill tradesclassification, seniority provisions and all other matters dealingwith the Skilled Trades classifications covered by thisAgreement. Where any issues arise relating to skill tradesthat are not covered by this Article, reference shall be made tothe applicable Article within the Collective Agreement.

2) The Skilled Trades covered by this Article constitute thoseTrades for which an apprenticeship is usually served togetherwith those classifications, which form a part of anapprenticeable Trade. These are as follows:

Research and Development MechanicResearch and Development Mechanic (Tooling Qualified)Research and Development TechnicianTool MakerIndustrial Mechanic (Millwright)MetrologistElectrician

A Journey Person in any of the designated Skilled Trades shallmean any Person who:

(a) Has served a bonafide apprenticeship of four (4) years-8,000hours and possesses proof of such apprenticeship service or

(b) Holds a recognized UAW/CAW Journey Person card in theTrade in which he or she claims recognition, or

(c) Has eight (8) years practical and general experience coveringall phases laid down in the apprenticeship course applicableto the Trade in which he or she claims Journey Person statusand possesses ample proof of such experience.

Entry into the Skilled Trades shall be restricted to Persons:

(a) Who qualify as Journey Person under the provisions set forthin the immediately proceeding paragraphs, or

(b) Who qualify for Journey Person status through any

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apprenticeship program which may be negotiated by theparties, or

(c) Who provide documents prior to the date of hire proving theirclaim to Journey Person status both to the Company and theSkilled Trades representative, or who provide documents withinfifteen (15) working days of being hired or promoted from anyclassification. If an Employee requires an extension, fifteen(15) days would be granted on mutual Agreement between theCompany and the Union.

Skilled Trades Seniority

· A newly hired probationary Journey Person shall acquireseniority rights in a Skilled Trades upon completion of his orher probationary period.

· The probationary period must be completed in its entirety withina Skilled Trade. Once he or she has acquired seniority, his orher seniority date will be his or her date of entry into the Trade.

· The application of seniority in the Skilled Trade shall be bynon-interchangeable classification or Trades, within eachTrade.

· A Supplemental Helper shall not accumulate seniority within aSkilled Trade but shall accumulate seniority in the Productionclassification of Utility Person (new Employee).

Lay off and Recall

(a) A Production Employee cannot exercise his or her seniority todisplace a Journey Person or Supplemental Helper within aSkilled Trade. Conversely, a Journey Person cannot exercisehis or her seniority to displace an Employee in the Productionclassification.

(b) In the event a layoff from a Skilled Trade, the following procedureshall apply:

First – Supplemental Helpers will be laid off from the affected SkilledTrade in the inverse order of seniority and will exercise their seniorityin the Production group in accordance with the layoff and recall

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section of the Collective Agreement.

Second – Journey Person will be laid off from the affected SkilledTrade or classification in the inverse order of their date of entryseniority within such Skilled Trade. A Journey Person to be laid offfrom his or her Trade may exercise his or her seniority to displacethe most junior Supplemental Employee, who is employed inanother lower or equivalent Skilled Trade, provided, however, thatsuch Journey Person has the necessary experience and abilitybased on the progression chart.

· When work is again available, Trade Journey Person shall becalled back in inverse order of their lay-off within their skilledtrade.

· A laid off seniority Journey Person may, if he or she so elects,file an application with the Human Resources Department foremployment in the Production group. Upon receipt of suchapplication, the Employee will be given preference over a newhire. Such Employee will then have date of entry seniority inthe Production group with the understanding that to protect hisor her Skilled Trade seniority, he or she must return to his orher Skilled Trade classification when recalled. Failure to acceptsuch recall means he or she forfeit his or her Skilled Tradeseniority.

Skilled Trades Council

The Company agrees to deduct Canadian Skilled Trades Councildues as may be adopted by the CAW Canadian Skilled TradesCouncil upon receipt of individual authorization cards signed bythe Employee at the time of hire. First deduction to be made fromthe Employees from the first pay received after completion of theprobation period. Future deductions to be made in January ofsucceeding years, or upon completion of one (1) month’s work inthe calendar year.

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Supplementary Help

· If, after posting in the plant and advertising in the press, thesupply of qualified journey Person is in-sufficient to meetCompany needs, then the Company may post for applicationsfrom Employees possessing less than Journey Person skill.

· Consideration shall be given to applications under this sub-section in the following manner:

(a) Applications from Employees in classifications covered by thisArticle will receive preference in consideration for acceptanceinto the position.

(b) If the Company is unable to fill its needs from those applicantscovered by classifications in this Article, then applications fromEmployees in Production classifications will be considered.

(c) If unable to fill its needs from those applicants in the Productionclassifications, the Company may then hire outside help.

· Employees hired or temporarily promoted under this sectionshall be replaced by Journey Person within ten (10) days ofsuch Journey Person presenting himself/herself for employmentproviding he or she is qualified.

· Production Employees upgraded under this provision shallaccumulate seniority in the job classification from which theyare temporarily promoted and shall not accumulate or acquireseniority in the Skilled Trades.

· A non-Journey Person, Employee, who is hired under thisprovision, will acquire seniority under the general provisions ofthe Collective Agreement, and when surplus he or she will belaid off from skilled trades.

· Supplementary help Employees shall only be permitted towork overtime when all the Trades Persons in the affectedgroup who normally work in that Trade are first given theopportunity.

Supplementary Help shall be paid .90 (90 cents) per hour lessthan the applicable Skilled Trade rates. Should the spreadbetween the employee’s current rate and the Skilled Trade ratebe $1.40 per hour or less, the employee will receive a .50 (50cents) per hour adjustment to their current wage rate. This .50

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(50 cent) per hour increase (added to the employee’s currentwage rate) will be their Supplementary Help wage rate.

No Supplementary Help wage rate shall exceed the applicableSkill Trade wage rate.

Apprenticeship

a) Apprenticeship Standards – The following standards ofapprenticeship covering the employment and training ofapprentices in the trades included in these standards havebeen agreed to by the Company and the NationalAutomobile, Aerospace, Transportation and GeneralWorkers Union of Canada (CAW-Canada) and its Local1285.

b) Purpose – The purpose of these standards are to makecertain that extreme care is exercised in the selection ofapplicants and that the methods of training are uniform andsound, with the result that they will be equipped for profitableemployment, and to further the assurance to the Companyof proficient employees at the conclusion of the trainingperiod.

c) Definitions:1) The term “Company” shall mean Orion Bus Industries

Ltd.2) The term “Union” shall mean the duly authorized

representatives of the National Automobile,Aerospace, Transportation and General WorkersUnion of Canada (CAW-Canada) and its LocalUnion 1285.

3) “Registration Agency” on labour standards shallmean the Industrial Training Branch, Department ofLabour. “Registration Agency” for the apprenticeas a student, covering related instruction.

4) “Apprenticeship Agreement” shall mean a writtenagreement between the Company and the personemployed as an apprentice, and his or her parentor guardian if he or she is a minor, which agreement

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or indenture shall be reviewed by the JointApprenticeship Committee and registered with theRegistration Agencies.

5) “Apprentice” shall mean a person who is engagedin learning and assisting in the trade to which he orshe had been assigned under these standards andwho is covered by a written agreement with theCompany providing for his or her training inaccordance with these standards of apprenticeshipand who is registered with the RegistrationAgencies.

6) “Committee” shall mean the Joint ApprenticeshipCommittee organized under these standards.

7) “Supervisor of apprentices” shall mean the personemployed as such or the person assigned theresponsibility by the Company to perform the dutiesoutlined in these standards of apprenticeship.

8) “Standards of apprenticeship” shall mean this entiredocument, including these definitions.

d) Application – Application for apprenticeship will be receivedby the Human Resources Department of the Company fromapplicants considering themselves eligible under theprogram of training. These applications of prospectiveapprentices will be reviewed by the Joint ApprenticeshipCommittee; however, it is understood that the final selectionand hiring of the apprentices is the sole responsibility ofthe Company.

e) Apprenticeship Eligibility Requirements – In order to beeligible for the apprenticeship under these standards theapplicant must meet the following qualifications:1) He or she must have a junior matriculation or its

educational equivalent;2) Exceptions to these requirements may be made by

the Company upon the recommendation of theCommittee for applicants who have unusualqualifications;

3) It is understood that all applicants must successfully

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pass the Company’s regular employmentrequirements.

f) Credit for Previous Experience – At the discretion of theCommittee, credit for prior experience in the applicabletrade may be given after evaluation. Review will be madeafter completion of the apprentices’ probationary period.

g) Term of Apprenticeship – The term of apprenticeship shallbe as established by these Standards of Apprenticeship inaccordance with the schedule of work processes andrelated instruction as outlined in the Appendix attachedhereto.

h) Probationary Period – The first five hundred (500) hours ofemployment for every apprentice shall be a probationaryperiod. During this probationary period the apprenticeshipagreement with an apprentice may only be cancelled bythe Company after advising the Committee. Theregistration agencies shall be advised of suchcancellations.

i) Hours of Work – Apprentices shall work the same hoursand be subject to the same conditions regarding overtimerates as the journeymen employed by the Company. Incase an apprentice is required to work overtime he or sheshall receive credit on the term of apprenticeship for onlythe actual hours of work. Apprentices may work overtimehours providing that the proper ratio of apprentices tojourneymen established by these standards is maintained.

j) Ratio – The ratio of apprentice to journeyman shall notexceed one apprentice to each eight (8) journeymen in thetrade in which he or she is apprenticed, (e.g. One (1)toolmaker apprentice to eight (8) toolmakers). If layoffsbecome necessary apprentices shall be laid off to maintainthe same ratio.

k) Discipline – The Committee shall have the authority torecommend discipline and/or cancellation of theapprenticeship agreement of the apprentice to theCompany at any time for cause such as:

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1) inability to learn;2) unreliability;3) unsatisfactory work;4) lack of interest in his or her work education;5) improper conduct;6) failure to attend classroom instruction regularly.

l) Wages – Apprentices in each of the trades covered bythese standards shall be paid a progressively increasingschedule of wages as follows:

1st 1,000 hours – not less than 65% of the journeymen’s wage rate.2nd 1,000 hours – not less than 70% of the journeymen’s wage rate.3rd 1,000 hours – not less than 75% of the journeymen’s wage rate.4th 1,000 hours – not less than 80% of the journeymen’s wage rate.5th 1,000 hours – not less than 85% of the journeymen’s wage rate.6th 1,000 hours – not less than 90% of the journeymen’s wage rate.7th 1,000 hours – not less than 95% of the journeymen’s wage rate.8th 1,000 hours – not less than 95% of the journeymen’s wage rate.

The apprentice shall also receive the annual improvementfactor and all cost of living increases that are accorded allother plant employees, where such contract provisions exist.

Hours spent in classroom instruction shall not beconsidered hours of work in computing overtime.

Apprentices who are given credit for previous experienceshall be paid, upon receiving such credit, the wage rate forthe period to which such credit advances them. This shallnot be made retroactive.

When an apprentice has completed 8,000 hours of trainingand after recommendation for his or her journeyman’scertificate by the Committee, he or she is to receive notless than the minimum rate to skilled journeymen in the tradein which he or she has served his or her apprenticeshipprovided an opening exists and he or she is selected foremployment as a journeyman.

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Apprentices shall not be paid for attendance at night school.If an applicant is required to attend a day school course inaddition to his or her night school training, he or she shallreceive the difference between the pay appropriate to hisor her apprenticeship period.

m) Academic Training – Apprentices are required as acondition of apprenticeship to receive and attendclassroom instructions at a technical or similar school. Theschedule of work processes and related instructions areattached to this apprenticeship plan. Modification may bemade to the schedules by the Committee, subject to finalapproval by the Company. The Company shall notify theRegistration Agencies of such changes. Credit for timespent in academic training is given in the calculation of thehours of apprenticeship served and shall be applied againstthe period total. A refund of the tuition fee will be made tothe apprentice provided he or she attends at least seventy-five percent (75%) of the classes during the season andreceives a passing grade. The student apprentice isrequired to furnish each month proof of his or her attendanceat the school.

n) Joint Apprenticeship Committee – There is herebyestablished a Joint Apprenticeship Committee as definedin Article 7( c). This Committee shall be composed of four(4) members, two (2) representing the Company and two(2) journeymen employees representing the Union.

The Chairperson shall be the Supervisor of Apprentices.The Committee shall meet once a month unless otherwiseagreed. It shall be the duty of the Committee:

1) To see that each prospective apprentice isinterviewed and impressed with the responsibilitieshe or she is about to accept as well as the benefitshe or she will receive.

2) To accept or reject applicants for apprenticeship

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subject to final approval by the Human ResourcesDepartment of the Company as provided in Article7(d).

3) To hear and decide on questions involvingapprentices which relate to their apprenticeship.

4) To determine whether the apprentice’s scheduledwage increase shall be withheld in the event that heor she is delinquent in his or her progress.

5) To offer constructive suggestions for theimprovement of training on the job.

6) To certify the names of graduate apprentices to theRegistration Agencies and recommend that aCertificate of Apprenticeship be awarded uponsatisfactory completion of the requirements ofapprenticeship established herein. No certificatewill be issued by the Registration Agencies unlessrecommended by the Committee.

7) To review the Foreman’s monthly report on eachapprentice.

8) In general, to be responsible for the successfuloperation of the apprenticeship standards in theplant and the successful completion of theapprenticeship by the apprentices under thesestandards.

o) Supervision of Apprentices – Apprentices shall be underthe general direction of the Supervisor of Apprentices andunder the immediate direction of the Foreman of thedepartment to which they are assigned. The Supervisor ofApprentices is authorized to move apprentices from onedepartment to another, in accordance with the pre-determined schedule of work training. Where anapprentice is retained unavoidably on a scheduled workprocess for a period longer than the maximum timescheduled for such work process, an explanation shall besent to the Supervisor of Apprentices who will place itbefore the Committee for their review at the next meeting.

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The Supervisor of Apprentices or an individual chargedwith this responsibility in consultation with the Committee,shall prepare adequate record forms to be filled in by theForeman under whom the apprentices receive direction,instruction and experience. Foremen shall make a monthlyreport to the Supervisor of Apprentices on the work andprogress of the apprentices under their supervision. Thesereports shall be submitted to the Committee for review.

p) Seniority – The apprentices will exercise their seniority intheir own group. For example if there are four apprenticesin the trade such as “….” And a reduction in this number isrequired due to lack of work, the first hired or classified asan apprentice shall be the last laid off and the last laid offshall be the first to be reinstated.

Upon satisfactory completion of the apprenticeshipprogram the apprentice will be given seniority equal to 50%of time spent as an apprentice but not more than two (2)years.

Notwithstanding the provisions of the Collective Agreement,dated first day of April 2003, between the Company andthe Union, of which these Apprentice Standards shallhenceforward be a part, an employee with seniority who isselected for an apprenticeship shall be permitted if affectedby layoff during the first five (500) hundred hours ofapprenticeship, to return to his or her former jobclassification with the same seniority date that he or sheheld immediately prior to becoming an apprentice.

After five (500) hundred hours as an apprentice, anapprentice shall have as his or her seniority date the datehe or she was accepted as an apprentice and shall notacquire or retain seniority rights to bump into anyclassification outside that of apprentice.

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q) Apprenticeship Agreement – “Apprenticeship Agreement”shall mean a written agreement between the Company andthe person employed as an apprentice and his or her parentor guardian (if he or she is a minor), which agreement shallbe approved by the Supervisor of Apprentices andregistered with the Registration Agencies.

The following shall receive copies of the apprenticeshipagreement.1) The Apprentice2) The Company3) The Committee4) The Registration Agencies5) The Local Union6) The National Automobile, Aerospace Transportation

and General Workers Union of Canada (CAW-Canada).

r) Certificate of Completion of Apprenticeship – Uponcompletion of the apprenticeship under theseApprenticeship Standards, the Supervisor of Apprenticeswill recommend to the Industrial Training Branch,Department of Labour, that a certificate, signifyingcompletion of the apprenticeship, be issued to theapprentice. No certificates will be issued by theApprenticeship Branch, Department of Labour unlessrecommended by the Committee.

SCHEDULE “A”

MANAGERIAL ORGANIZATIONALGRIEVANCE PROCEDURE

Material HandlingVerbal Immediate Supervisor1st Step Immediate Supervisor2nd Step Manager (Production/Materials)

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ProductionVerbal Immediate Supervisor1st Step Superintendent2nd Step Manager

Research & DevelopmentVerbal Immediate Supervisor1st Step Manager2nd Step Director of Engineering

Quality AssuranceVerbal Immediate Supervisor1st Step Immediate Supervisor2nd Step Manager (Production/QA)

Maintenance and ToolmakersVerbal Immediate Supervisor1st Step Immediate Supervisor2nd Step Manager

SCHEDULE “B”

Benefits

The benefits described hereunder shall apply to all seniorityEmployees in the Bargaining Unit and who are represented by theCAW during the term of this Agreement.

The Employer shall make available all benefits as mutually agreedbetween the Company and the Union to eligible Employees. Thecost of the coverage shall be paid one hundred per cent (100%)by the Company. An eligible Employee who has completed his orher probationary period at the effective date of the plan will beeligible for coverage on the first day of the following month.

Each Employee is responsible for notifying the Company of anychange in his or her status, dependents and other details relativeto being eligible for claiming benefits.

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Where an Employee is absent by reason of an injury or an industrialdisease for which a claim is made under the Workplace Safetyand Insurance Board and approved by the Workplace Safety andInsurance Board, then his or her normal hourly rate shall be paidby the Board at a rate prescribed by the Workplace Safety andInsurance Board. Any absence in respect of such substantiatedinjury or industrial disease shall not be charged against his or hervacation credits.

When an Employee initiates a claim for lost time with the WorkplaceSafety and Insurance Board, and the claim is denied by theWorkplace Safety and Insurance Board, the Employee may claimfor benefits under Weekly Indemnity. Written proof of claim mustbe provided. If the claim is approved, the Employee will be paidunder the weekly indemnity plan for disability following theprescribed elimination period.

The Company shall make available the following benefits asmutually agreed between the Company the Union to employeesand their dependants who have completed their probationaryperiod. The cost of all benefits shall be paid one hundred percent(100%) by the Company. Employees must follow the properadministrative processes and submission procedures.

Life Insurance

An amount equal to 100% of the employees annual gross earnings(rounded to the next higher multiple of $1,000 if not already amultiple thereof), up to a maximum of $500,000.

Dependent Life Insurance Coverage

Spouse $10,000 and Child $5,000 (each child who is 14 days ofage or older).

Optional Life Insurance

The Company agrees that it will administer an optionalsupplementary life insurance plan paid for by the Employee.

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Accidental Death and Dismemberment Coverage

· 100% of annual earnings to a maximum of $500,000.00except in case of the following:

· Suicide or any attempted thereat by the InsuredPerson.

· Injury sustained in consequence of riding in anyvehicle or device for aerial navigation except asprovided in the Definition of Injury and Scope ofCoverage.

· Declared or undeclared war or any act thereof.

· Active full time service in the armed forces.

Benefits Eligibility

On the first day of the month following the completion of theirprobationary period, Employees will be eligible for benefitcoverage as set out below: Family coverage will includecoverage for dependant children under age 21; or under age25 if attending school full-time; and/or financially dependentchildren of any age if such child is physically or mentallydisabled; spouse included spouse by marriage or a personwith whom an Employee cohabits in a conjugal relationship fora period of a year or more, and includes same sex partners.

Extension of coverage on your death: If your dependantsare covered under your benefits on the date of your death(providing the Employee was eligible for benefits at time ofdeath), their coverage will continue on a non-contributory basisfor a period up to two (2) years for the purpose of extendedhealth care and dental. Coverage will cease upon re-marriageof your spouse or upon the commencement of a common-lawrelationship.

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Weekly Indemnity

The Employer shall make available the following benefits asmutually agreed between the Company and the Union to eligibleEmployees. The cost of the coverage below shall be paid onehundred percent (100%) by the Employer. An eligible Employeeshall be one who has completed the probationary period at theeffective date of the Plan, made application through theappropriate submission process and is under the care of aphysician.

When you are unable to perform any (or all) duties of yourclassification and not working for wages, because of accident orsickness not covered by WSIB, weekly payments will be made toyou beginning:· 1st day of disability due to an accident, or· 1st day of hospital confinement relating to an accident or

sickness, or· 4th consecutive day due to sickness.

Weekly payments will continue up to a maximum of twenty six (26)weeks or retirement while an Employee is unable to perform anyduties in his or her classification at seventy percent (70%) of grossweekly earnings.

If an Employee should return to work and is again absent becauseof the same disability within less than fourteen (14) continuousdays, benefits shall continue from where they left off and there willbe no waiting period.

Extended Disability Benefits

An Employee who receives twenty-six (26) weeks of sicknessand accident benefits may be eligible to receive extendeddisability benefits on a monthly basis. Payment shall be anamount equal to 66 2/3% of your monthly earnings as of thecommencement of total disability up to a maximum of $10,000.00per month. The amount of the monthly benefit payable may be

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reduced so that your income from all sources will not exceed85% of your gross monthly earnings.

The cost of the coverage of the Extended Disability Benefit shallbe paid one hundred (100%) per cent by the Company as mutuallyagreed between the Company and the Union.

Benefits are payable up to your 65th birthday or, if earlier, to thedate on which you elect to receive early retirement benefits underany Employee benefit plan.

The Union reserves the right to file a grievance in accordancewith the grievance and arbitration procedure for decisions madeunder this benefit.

Travel Assistance Coverage

· Pre-Travel Services

· Emergency Medical Assistance

· Travel and Communication Assistance

· Trip Interruption Benefits

Prescription Drug Coverage

100% for employees and their dependents with a $1.00 deductiblefor each eligible prescription.

Extended Health Care Coverage

80% of eligible charges for myoelectric prostheses and 100% ofall other eligible charges. Overall lifetime unlimited.

Hospital

· Semi-private hospital room and board in Canada

· Semi-private convalescent or rehabilitation hospital room and

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board in Canada –180 days for any one disability. Excludingcharges, which are primarily for custodial care such as chroniccare facilities and nursing homes.

Expenses incurred while out of Canada

Treatment of medical emergency (reasonable and customarycharges) and Specialized treatment not available in Canada(reasonable and customary charges) when the covered person isreferred outside Canada by his or her or her regularly attendingphysician.

Ambulance Services

To and from the nearest medical facility equipped to provideadequate treatment.

Private duty nursing service in the home

By a registered graduate nurse, a registered nursing assistant, aregistered practical nurse, or similarly licensed person, other thana close relative, provided (a) the service is prescribed by a dulylicensed doctor of medicine and (b) intensive care nursing isrequired in the treatment of an acute sickness up to $25,000 in acalendar year. Benefits will not be payable when the servicesactually furnished are mainly custodial, are mainly to assist theperson with functions of daily living or to dispense oral medicationor could be furnished properly by someone who does not have theprofessional qualification stated above.

Psychologist

Services of a psychologist in connection with the diagnosis andtreatment of mental, nervous or emotional disorders up to $400.00in a calendar year.

Other Services

Services of a chiropractor, naturopath, osteopath, podiatrist orchiropodists $400.00 per practitioner in a calendar year.

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Treatment by a registered massage therapist when the person isreferred by a duly licensed doctor of medicine up to $500.00 in acalendar year.

Treatment by a physiotherapist, occupational therapist or speechtherapist practicing within the scope of his or her or her professionup to an overall maximum of $400.00 (for each therapist) in acalendar year.

Cardiac Rehabilitation up to $400.00 in a calendar year.

Custom-made orthopedic shoes and modifications to such shoesup to a maximum of one pair in a calendar year.

Orthopedic Appliances prescribed by a licenced podiatrist up to$300.00 in a calendar year.

Purchase, repair or replacement of hearing aids up to a maximumof $400.00 every 60 months.

Lenses required as a result of cataract surgery up to a maximumof $200.00.

Vision Care

$250.00 every 24 months for eyeglass frames and regular lenses,contact lenses sunglasses containing corrective lenses, anddispensing fees. ($300.00 every 24 months for bifocal, trifocaland multifocal lenses)

Dental

Coverage for you and your dependents will become effective onthe first day of the month following the probationary period hasbeen completed.

Employees on approved disability leave from the Company willbe entitled to Dental Coverage for a period of twenty four (24)continuous months.

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If the carrier is changed, the existing level of benefits under theplan will be maintained.

The Company will pay one hundred (100%) per cent of the costof coverage of benefits under this plan.

Effective ratification this plan will be based on the current OntarioDental Association Suggested Fee Guide for Dental ServicesProvided by General Practitioners with the payment being basedon 100% or 80% of the Fee Schedule depending upon the kindof treatment rendered and coverage negotiated.

The Company will provide coverage of basic services at 100%(eligible charges). Major services at 80% (eligible charges – toa maximum of $1500.00 per individual in a calendar year).

Services to be provided under this plan as set out in the list ofdental services.

Complete oral examinations, once every six months.

Child Orthodontic Coverage – 50% coverage with a lifetimemaximum of $2200.00 per child.

Dental coverage will continue for employees (and their dependents)that are on approved leaves of absence, sick leave, WSI, maternityleave, parental leave or Union Leave of absence.

Basic Services –Coverage 100%

· Examination once every 6 months.· Recall oral examination once every 5 months.· X-ray examination – complete series once every 2 years.· Tests and Laboratory Examinations.· Preventative Services – Polishing services 2 time per year.· Fluoride once every 5 months.· Oral hygiene once every 5 months

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· Restorations – Non bonded silver amalgam. Tooth coloured.Retentive pins and posts. Stainless-steel crowns and plasticcrowns (primary teeth). Caries/pain control.

Endodontic Services

· Pulp capping

· Pulpotomy/pulpectomy

· Root canal therapy

· Periodontal Services

· Denture Services – Repairs, additions, reline, rebasing.

· Oral Surgery

· Adjunctive Services

Major Services - 80% to set maximum

· Single Restorations – Onlays, inlays, crowns

· Prosthodontics – Removable

· Prosthodontics – Fixed

· Orthodontic Services – See entitlement.

· Reference the Group Benefit Plan Booklet for entitlementinformation and definitions of greater benefits.

Emergency Dental Coverage

If the treatment is required as a direct result of an accident, injuryto natural teeth, when caused by a direct accidental blow to themouth provided the charges are incurred within 12 months of theaccident. This coverage is in addition to the maximum annualdental coverage.

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Preferred Vision Services

This service entitles employees a discount on a wide selection ofquality eyewear and vision care services when purchased from aPVS network optician or optometrist.

Employee Assistance Program

The Employer will provide an Employee Assistance Program.

Greater Benefits

All other entitlements as set out in the Group Benefit Plan booklet.

Retirement

The normal retirement age is 65 years of age on the last day of themonth in which the Employees 65th birthday occurs.

Benefit Coverage for Retirement

The Company will continue the following coverage for ninety (90)days after retirement:

· Prescription Drug

· Extended Health Care

· Dental

· Vision CarePension Plan

Commencing the first day of the month following theprobationary period and:

Effective April 1, 2003 the Employer will contribute an additional1% to the current 2% making the total Employer contribution 3%.Effective April 1, 2004 the Employer will contribute an additional1% making the total Employer contribution 4%.

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Effective April 1, 2005 the Employer will contribute an additional1% making the total Employer contribution 5%.

The Employee at their option may make additional contributions.

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Letter of UnderstandingBetween

CAW Local 1285And

Orion Bus Industries Ltd.

Where a Bargaining Unit CAW Local 1285 employee, is requiredto perform work away from the Orion Bus Industries Ltd. facility,temporarily or full time, the Company shall first meet with the UnionChairperson on a case by case basis and will mutually agree tothe terms, conditions and frequency of the return prior to theassignment initiated.

Employees of Orion Bus Industries Ltd. represented by theNational Automobile, Aerospace, Transportation and GeneralWorker Union of Canada (CAW-Canada) and its Local Union1285 are covered by the terms and conditions of the currentCollective Agreement between CAW Local 1285 and Orion BusIndustries Ltd. while they are temporarily or full time assigned towork off site.

Employees will be offered the assignment in order of seniorityfrom the highest to lowest within the required classification basedon the required skills. An employee’s status will not be affectedby refusing such a temporary or full time assignment.

Cost of travel fares, to location and return, will be paid by theCompany. If an employee seeks to use any alternate means oftransportation than that determined by the employer, cost of travelfares to the location and return, will be paid by the Company,including ground transportation, as long as the arrangements areapproved in advance by the Company. In addition, the Companywill agree to pay for all reasonable expenses (in accordance withthe Travel and Entertainment Policy) including hotel and meals.Receipts must be provided for all travel expenses.

Any travelling time to location or return, outside of regular workinghours will be paid for at regular overtime rates of the CollectiveAgreement.

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While on off site work from Orion Bus Industries Ltd., a per diemof ten dollars ($10.00) per day will be paid by the Company.

The Company will cover travel expenses for employees requiredto travel on Company business at thirty-two ($0.32) (increasedbased on Company policy) per kilometer when use of a personalvehicle is required.

The Company will deduct Union Dues for employees workingtemporarily or full time off site and submit to the Local Union.

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Orion Bus Industries Ltd.

350 Hazelhurst Road, Mississauga, Ontario, L5J 4T8

Tel: (905) 403-1111 Fax: (905) 403-8800

Orion Bus Industries Inc.

165 Base Road, PO Box 748, Oriskany, NY 13424-0748

Tel: (315) 223-5100 Fax: (315) 223-5260

Web site: www.orionbus.com

An ISO 9001:2000 Registered CompanyA DaimlerChrysler Company