HORIZON CONSTRUCTION MANAGEMENT LTD (HCML)

- and-

CONSTRUCTION WORKERS UNION (CLAC) LOCAL NO 63 Affiliated with the Christian Labour Association of Canada

(CLAC)

AMENDMENT 3

Horizon Oil Sands Project Collective Agreement For All Employees Pursuant to the

Horizon Oil Sands Project Designation Regulation OC 5652004 Alta Gaz December 31 2 04

(Labour Relations Code Division 8)

This printing is for communication purposes only Original signed documents are on file at the CLA C offices ill Edmonton

p0

INDEX

PART I - INTRODUCTION

11 Definitions Page 3

12 Underlying Terms Page 5

J3 Application and Duration of this Agreement Page 6

14 Parts of this Agreement Page 6 I

PART 2 - TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances Page 8

22 Strikes and Lockouts Page 9

23 Collective Agreement Grievances Page 9

24 Committees Page 9

25 Wages and Compensation Page 10

26 Work Schedules Page 10

27 Hiring Practices Page 12

28 Transportation and Travel Page 12

29 Accommodation Page 18

210 Site Stability Page 19

211 Site Policies Page 21

212 Terms and Conditions of Employment Page 21

213 Cooperative Initiatives Page 22

214 HCML shy Contracting Page 22

215 Employer Organizations Page 22

PART 3 - ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose Page 23

32 Recognition Page 23

33 Management s Rights Page 23

34 Union Representation Page 24

35 Employment Poli cy and Union Membership Page 26

36 Union Dues Page 27

Page 2 01119111

Wages amp Rates of Pay Page 2737

38 Hours of Work amp Overtime Page 28

Page 2939 Lay-Offs

Vacation amp Vacation Pay Page 30310

Holidays amp Holiday Pay Page 30311

Union-Management Committee Page 31312

Health and Safety Committee Page 31313

Health and WeI fate Plan Page 32314

315 Retirement Plans Page 33

Page 34316 Education and Training Funds

317 Tools Page 34

Protective Equipment Page 34318

Leaves of Absences and Bereavement Pay Page 35319

Grievance Procedure Page 35320

Grievance Arbitration Page 38321

Reviews and Interest Arbiuation Page 38322

Discharge Suspension and Warning Page 39323

324 Dues and Trust Fund Payments Page 40

Amendments Page 40325

PART 4 - ADDITIONAL TERMS AND CONDITIONS APPLYING TO BllILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

Application of Parts of Building Trade Collective Agreements Page 4241

42 Camp Page 43

Work Scheduling and Overtime Page 4343

44 Travel and Transportation Page 44

Overtime Meals Page 4545

46 Subsistence for Foremen and General Foremen Page 45

General Page 4S47

PART 5 - ADDITIONAL TERMS AND CONDITIONS APPLYING TO NON-UNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions Page 46

Page 3 01119111

PART 6 - TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work Page 48

PART 7 - GENERAL

71 Severabi lity Page 49

72 Governing Law Page 49

73 Assignment Page 49

74 Amendments of Agreement Page 49

75 Plural and Neutral Gender Page 49

76 Notice Page 50

APPENDLX I

Horizon Oil Sands Project Designation Regulation Page 51

APPENDLX 2

Building Trade Unions Page 52

APPENDIX 3

Schedule A-O Wage Rates as of September 1 2009 Page 53

Schedule A-I Wage Rates as of February 1 2011 Page 58

Schedule A Notes Page 76

APPENDIX 4

Building Trade Collective Agreements Page 60

APPENDIX 5

I Special Projects Work Page 70

APPENDLX 6

I Direct Service Provider Rates Page 72

APPENDIX 7

I Pre-Job Report Page 74

AMENDMENT 3 TO THE HORIZON OIL SANDS PROJECT COLLECTIVE AGREEMENT FOR ALL EMPLOYEES PURSUANT TO THE HORIZON OIL SANDS PROJECT DESIGNATION REGULATION Oc 5652004 ALTA GAZ DECEMBER 31 2004 (LABOUR RELATIONS CODE DIVISION 8)

THIS AGREEMENT made effective as of February 12011

BETWEEN

HORIZON CONSTRUCTION MANAGEMENT LTD (HCML)

- and-

CONSTRUCTION WORKERS UNION (CLAC) LOCAL No 63 affiliated with the Christian Labour Association

of Canada (CLAC)

RECITALS

(a) Canadian Natural Resources Limited (the Owner) owns the Horizon Oil Sands Project (the Project) comprised of leases covering approximately 236000 acres in the Fort McMurray region of Northern Alberta and has received Provincial and Federal Government approval to proceed with the Project as defined below to develop these lands

(b) The Project includes the construction and omiddotperation of a mine a bitumen extraction complex an upgrader and associated infrastructure

(c) The Owner has entered into an agreement with HCML to be primarily responsible for construction of the Project

(d) The Owner and the Parties wish to have the Project constructed as efficiently as possible while maintaining labour relations stability by avoiding disruptions strikes and lockouts

(e) The Owner and the Parties wish to enhance the participation on the Project and the work experience of the qualified trades people and construction workers that are resident in the Proj ect area the rest of Alberta and the rest of Canada

(f) On December 6 2004 the Lieutenant Governor in Council issued the Horizon Oil Sands Project Designation Regulation OC 5652004 Alta Gaz December 31 2004 (the Order in Council) pursuant to which the Lieutenant Governor in Council designated that for the purposes of Section 196 of the Alberta Labour Relations Code (the Code)

(i) The Project is designated as a project to which Division 8 of Part 3 of the Code applies

(ii) HCML is designated as the principal contractor of the Project

(iii) HCML is authorized to bargain collectively in respect of the Project and

Page 2 01119111 (iv) the scope of construction in respect of the Project to which a collective agreement

under Division 8 of Part 3 of the Code (Division 81) will apply is all construction work until completion of Phases 12 and 3 of the Project

The Order in Council is attached as Appendix 1

(g) The Parties recognize that one of the underlying purposes of Division 8 is to remove the possibility of labour disruptions at major construction projects designated as projects under Division 8

(h) CLAC is the bargaining agent of Trade employees ofHCML

(i) The Parties wish to enter into a collective agreement pursuant to Division 8 for the Project and

U) The construction of the Project can best be achieved by having certain terms and conditions of employment apply to HCML as the principal contractor and to all employees in all Trades and their Employers Accordingly the Parties have structured and adopted language to recognize different relationships among the various Employers Unions and Employees as well as various collective agreements and bargaining relationshi ps

(k) This agreement is the third amendment and restatement of the Horizon Oil Sands Project Collective Agreement for all Employees pursuant to the Horizon Oils Sands Project Designation Regulation oC 56512004 Alta Gaz December 31 2004 (Labour Relations Code Division 8) and shall replace and supersede the prior agreement including any amendments thereto or restatements thereof as of its effective date

NOW THEREFORE in consideration of the premises and the mutual covenants and agreements hereinafter set forth HCML and CLAC have agreed to the following terms and conditions that form a collective agreement pursuant to Division 8 in respect of the Project

Page 3 01119111

PART 1 INTRODUCTION

11 Definitions

111 Agreement means this agreement and includes the Recitals Parts 1 through 7 and the Appendices

112 Bargaining Relationship means a collective bargaining relationship established by voluntary recognition or certification

113 Building Trade Collective Agreements means those collective agreements referenced in Appendix 4 of this Agreement as amended from time to time and any subsequent construction collective agreements entered into between the Building Trade Unions and Registered Employers Organizations or individual Employers

114 Building Trade Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a Building Trade Union in respect of that Trade on the day the Employer begins Work on the Project

115 Building Trade Unions means those Unions identified in Appendix 2 which may be amended by HCML from time to time and will include successors or assigns of existing Building Trade Unions

116 CEP means the Communication Energy and Paperworkers (CEP)

117 CLAC Agreement means the terms and conditions set out in Part 3 and Appendix 3 of this Agreement and any successor or replacement terms and conditions

118 CLAC Employee means any person employed to do Work in a Trade and whose Employer has a Bargaining Relationship with CLAC for that Trade on the day the Employer begins Work on the Project

119 CLAC Employer means an Employer of CLAC Employees

1110 Employee means any person employed to do Work within the scope of this Agreement in one or more Trades but does not include any Excluded Employees

1111 Employer means any employer of Employees as defined in Section 1 (m) of the Code and as provided in section 198 of the Code

1112 Employers Organization means any employers organization as defined in Section 1 (n) of the Code the Merit Contractors Association and the Progressive Contractors Association of Canada

1113 Excluded Employee means an Employee who is expressly excluded from the operation of all or part of this Agreement under the terms and conditions of another Project Agreement if any

1114 Industrial Work means Work on process facilities but does not include commercial Work or any of the Special Projects Work

Page 4 01119111 1115 Lockout means a lockout as defined in Section l(p) of the Code whether or not it is

lawful under the Code

1116 Non-Unionized Employee means any person employed to do Work in a Trade for which no union has a Bargaining Relationship with his Employer on the day the Employer begins Work on the Project

1117 Other Unionized Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a union other than CLAC CEP or the Building Trade Unions on the day the Employer begins Work on the Project

1118 OVvller means Canadian Natural Resources Limited and any successor

11 19 Parties means HCML and CLAC together

1120 Principal Residence means the place where an Employee in the settled routine of his life regularly normally or customarily lives with the underlying premise that everyone must be a resident somewhere This definition may be further clarified or amended by a Liaison Committee established in Article 241 In no circumstances mayan Employee claim that his Principal Residence is a construction camp in the Wood Buffalo region

1121 Project Agreement means any collective agreement entered into pursuant to Division 8 and relating to the Project and including as one of its parties HCML andor any other party designated as or as part of a principal contractor in respect of the Project

1122 Sanctioned means charging a member of a Union with an offence under that Unions constitution or bylaws or trying fining suspending expelling or otherwise penalizing that member under such constitution or bylaws and includes threatening to charge try or penalize a member

1123 Scheduled Overtime means all overtime scheduled as part of the hours in a Shift Cycle established pursuant to Article 263 and any overtime hours pursuant to Articles 265 and 266

1124 Special Projects Work means that Work set out in Appendix 5 and any other Work on the Project declared by HCML to be Special Projects Work

l125 Strike means a strike as defined in Section lev) of the Code whether or not it is lawful under the Code

1126 Temporary Foreign Workers means Employees or prospective employees who are not permanent residents of Canada

1127 Trade means a trade jurisdiction as defined in Schedule 2 of Alberta Regulation 34288 - The Construction Industry Transitional Regulation and includes any additional trade jurisdictions which may hereafter be recognized by Alberta legislation or regulations

1128 Union means any trade union that has a Bargaining Relationship with an Employer for any Trade and

1129 Work means any construction work in respect of the Project except for the Special Projects Work and any work performed by the Owners employees The Work ends in respect of any portion of the Project when the OVvller takes possession of that portion of

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

INDEX

PART I - INTRODUCTION

11 Definitions Page 3

12 Underlying Terms Page 5

J3 Application and Duration of this Agreement Page 6

14 Parts of this Agreement Page 6 I

PART 2 - TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances Page 8

22 Strikes and Lockouts Page 9

23 Collective Agreement Grievances Page 9

24 Committees Page 9

25 Wages and Compensation Page 10

26 Work Schedules Page 10

27 Hiring Practices Page 12

28 Transportation and Travel Page 12

29 Accommodation Page 18

210 Site Stability Page 19

211 Site Policies Page 21

212 Terms and Conditions of Employment Page 21

213 Cooperative Initiatives Page 22

214 HCML shy Contracting Page 22

215 Employer Organizations Page 22

PART 3 - ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose Page 23

32 Recognition Page 23

33 Management s Rights Page 23

34 Union Representation Page 24

35 Employment Poli cy and Union Membership Page 26

36 Union Dues Page 27

Page 2 01119111

Wages amp Rates of Pay Page 2737

38 Hours of Work amp Overtime Page 28

Page 2939 Lay-Offs

Vacation amp Vacation Pay Page 30310

Holidays amp Holiday Pay Page 30311

Union-Management Committee Page 31312

Health and Safety Committee Page 31313

Health and WeI fate Plan Page 32314

315 Retirement Plans Page 33

Page 34316 Education and Training Funds

317 Tools Page 34

Protective Equipment Page 34318

Leaves of Absences and Bereavement Pay Page 35319

Grievance Procedure Page 35320

Grievance Arbitration Page 38321

Reviews and Interest Arbiuation Page 38322

Discharge Suspension and Warning Page 39323

324 Dues and Trust Fund Payments Page 40

Amendments Page 40325

PART 4 - ADDITIONAL TERMS AND CONDITIONS APPLYING TO BllILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

Application of Parts of Building Trade Collective Agreements Page 4241

42 Camp Page 43

Work Scheduling and Overtime Page 4343

44 Travel and Transportation Page 44

Overtime Meals Page 4545

46 Subsistence for Foremen and General Foremen Page 45

General Page 4S47

PART 5 - ADDITIONAL TERMS AND CONDITIONS APPLYING TO NON-UNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions Page 46

Page 3 01119111

PART 6 - TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work Page 48

PART 7 - GENERAL

71 Severabi lity Page 49

72 Governing Law Page 49

73 Assignment Page 49

74 Amendments of Agreement Page 49

75 Plural and Neutral Gender Page 49

76 Notice Page 50

APPENDLX I

Horizon Oil Sands Project Designation Regulation Page 51

APPENDLX 2

Building Trade Unions Page 52

APPENDIX 3

Schedule A-O Wage Rates as of September 1 2009 Page 53

Schedule A-I Wage Rates as of February 1 2011 Page 58

Schedule A Notes Page 76

APPENDIX 4

Building Trade Collective Agreements Page 60

APPENDIX 5

I Special Projects Work Page 70

APPENDLX 6

I Direct Service Provider Rates Page 72

APPENDIX 7

I Pre-Job Report Page 74

AMENDMENT 3 TO THE HORIZON OIL SANDS PROJECT COLLECTIVE AGREEMENT FOR ALL EMPLOYEES PURSUANT TO THE HORIZON OIL SANDS PROJECT DESIGNATION REGULATION Oc 5652004 ALTA GAZ DECEMBER 31 2004 (LABOUR RELATIONS CODE DIVISION 8)

THIS AGREEMENT made effective as of February 12011

BETWEEN

HORIZON CONSTRUCTION MANAGEMENT LTD (HCML)

- and-

CONSTRUCTION WORKERS UNION (CLAC) LOCAL No 63 affiliated with the Christian Labour Association

of Canada (CLAC)

RECITALS

(a) Canadian Natural Resources Limited (the Owner) owns the Horizon Oil Sands Project (the Project) comprised of leases covering approximately 236000 acres in the Fort McMurray region of Northern Alberta and has received Provincial and Federal Government approval to proceed with the Project as defined below to develop these lands

(b) The Project includes the construction and omiddotperation of a mine a bitumen extraction complex an upgrader and associated infrastructure

(c) The Owner has entered into an agreement with HCML to be primarily responsible for construction of the Project

(d) The Owner and the Parties wish to have the Project constructed as efficiently as possible while maintaining labour relations stability by avoiding disruptions strikes and lockouts

(e) The Owner and the Parties wish to enhance the participation on the Project and the work experience of the qualified trades people and construction workers that are resident in the Proj ect area the rest of Alberta and the rest of Canada

(f) On December 6 2004 the Lieutenant Governor in Council issued the Horizon Oil Sands Project Designation Regulation OC 5652004 Alta Gaz December 31 2004 (the Order in Council) pursuant to which the Lieutenant Governor in Council designated that for the purposes of Section 196 of the Alberta Labour Relations Code (the Code)

(i) The Project is designated as a project to which Division 8 of Part 3 of the Code applies

(ii) HCML is designated as the principal contractor of the Project

(iii) HCML is authorized to bargain collectively in respect of the Project and

Page 2 01119111 (iv) the scope of construction in respect of the Project to which a collective agreement

under Division 8 of Part 3 of the Code (Division 81) will apply is all construction work until completion of Phases 12 and 3 of the Project

The Order in Council is attached as Appendix 1

(g) The Parties recognize that one of the underlying purposes of Division 8 is to remove the possibility of labour disruptions at major construction projects designated as projects under Division 8

(h) CLAC is the bargaining agent of Trade employees ofHCML

(i) The Parties wish to enter into a collective agreement pursuant to Division 8 for the Project and

U) The construction of the Project can best be achieved by having certain terms and conditions of employment apply to HCML as the principal contractor and to all employees in all Trades and their Employers Accordingly the Parties have structured and adopted language to recognize different relationships among the various Employers Unions and Employees as well as various collective agreements and bargaining relationshi ps

(k) This agreement is the third amendment and restatement of the Horizon Oil Sands Project Collective Agreement for all Employees pursuant to the Horizon Oils Sands Project Designation Regulation oC 56512004 Alta Gaz December 31 2004 (Labour Relations Code Division 8) and shall replace and supersede the prior agreement including any amendments thereto or restatements thereof as of its effective date

NOW THEREFORE in consideration of the premises and the mutual covenants and agreements hereinafter set forth HCML and CLAC have agreed to the following terms and conditions that form a collective agreement pursuant to Division 8 in respect of the Project

Page 3 01119111

PART 1 INTRODUCTION

11 Definitions

111 Agreement means this agreement and includes the Recitals Parts 1 through 7 and the Appendices

112 Bargaining Relationship means a collective bargaining relationship established by voluntary recognition or certification

113 Building Trade Collective Agreements means those collective agreements referenced in Appendix 4 of this Agreement as amended from time to time and any subsequent construction collective agreements entered into between the Building Trade Unions and Registered Employers Organizations or individual Employers

114 Building Trade Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a Building Trade Union in respect of that Trade on the day the Employer begins Work on the Project

115 Building Trade Unions means those Unions identified in Appendix 2 which may be amended by HCML from time to time and will include successors or assigns of existing Building Trade Unions

116 CEP means the Communication Energy and Paperworkers (CEP)

117 CLAC Agreement means the terms and conditions set out in Part 3 and Appendix 3 of this Agreement and any successor or replacement terms and conditions

118 CLAC Employee means any person employed to do Work in a Trade and whose Employer has a Bargaining Relationship with CLAC for that Trade on the day the Employer begins Work on the Project

119 CLAC Employer means an Employer of CLAC Employees

1110 Employee means any person employed to do Work within the scope of this Agreement in one or more Trades but does not include any Excluded Employees

1111 Employer means any employer of Employees as defined in Section 1 (m) of the Code and as provided in section 198 of the Code

1112 Employers Organization means any employers organization as defined in Section 1 (n) of the Code the Merit Contractors Association and the Progressive Contractors Association of Canada

1113 Excluded Employee means an Employee who is expressly excluded from the operation of all or part of this Agreement under the terms and conditions of another Project Agreement if any

1114 Industrial Work means Work on process facilities but does not include commercial Work or any of the Special Projects Work

Page 4 01119111 1115 Lockout means a lockout as defined in Section l(p) of the Code whether or not it is

lawful under the Code

1116 Non-Unionized Employee means any person employed to do Work in a Trade for which no union has a Bargaining Relationship with his Employer on the day the Employer begins Work on the Project

1117 Other Unionized Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a union other than CLAC CEP or the Building Trade Unions on the day the Employer begins Work on the Project

1118 OVvller means Canadian Natural Resources Limited and any successor

11 19 Parties means HCML and CLAC together

1120 Principal Residence means the place where an Employee in the settled routine of his life regularly normally or customarily lives with the underlying premise that everyone must be a resident somewhere This definition may be further clarified or amended by a Liaison Committee established in Article 241 In no circumstances mayan Employee claim that his Principal Residence is a construction camp in the Wood Buffalo region

1121 Project Agreement means any collective agreement entered into pursuant to Division 8 and relating to the Project and including as one of its parties HCML andor any other party designated as or as part of a principal contractor in respect of the Project

1122 Sanctioned means charging a member of a Union with an offence under that Unions constitution or bylaws or trying fining suspending expelling or otherwise penalizing that member under such constitution or bylaws and includes threatening to charge try or penalize a member

1123 Scheduled Overtime means all overtime scheduled as part of the hours in a Shift Cycle established pursuant to Article 263 and any overtime hours pursuant to Articles 265 and 266

1124 Special Projects Work means that Work set out in Appendix 5 and any other Work on the Project declared by HCML to be Special Projects Work

l125 Strike means a strike as defined in Section lev) of the Code whether or not it is lawful under the Code

1126 Temporary Foreign Workers means Employees or prospective employees who are not permanent residents of Canada

1127 Trade means a trade jurisdiction as defined in Schedule 2 of Alberta Regulation 34288 - The Construction Industry Transitional Regulation and includes any additional trade jurisdictions which may hereafter be recognized by Alberta legislation or regulations

1128 Union means any trade union that has a Bargaining Relationship with an Employer for any Trade and

1129 Work means any construction work in respect of the Project except for the Special Projects Work and any work performed by the Owners employees The Work ends in respect of any portion of the Project when the OVvller takes possession of that portion of

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

Page 2 01119111

Wages amp Rates of Pay Page 2737

38 Hours of Work amp Overtime Page 28

Page 2939 Lay-Offs

Vacation amp Vacation Pay Page 30310

Holidays amp Holiday Pay Page 30311

Union-Management Committee Page 31312

Health and Safety Committee Page 31313

Health and WeI fate Plan Page 32314

315 Retirement Plans Page 33

Page 34316 Education and Training Funds

317 Tools Page 34

Protective Equipment Page 34318

Leaves of Absences and Bereavement Pay Page 35319

Grievance Procedure Page 35320

Grievance Arbitration Page 38321

Reviews and Interest Arbiuation Page 38322

Discharge Suspension and Warning Page 39323

324 Dues and Trust Fund Payments Page 40

Amendments Page 40325

PART 4 - ADDITIONAL TERMS AND CONDITIONS APPLYING TO BllILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

Application of Parts of Building Trade Collective Agreements Page 4241

42 Camp Page 43

Work Scheduling and Overtime Page 4343

44 Travel and Transportation Page 44

Overtime Meals Page 4545

46 Subsistence for Foremen and General Foremen Page 45

General Page 4S47

PART 5 - ADDITIONAL TERMS AND CONDITIONS APPLYING TO NON-UNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions Page 46

Page 3 01119111

PART 6 - TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work Page 48

PART 7 - GENERAL

71 Severabi lity Page 49

72 Governing Law Page 49

73 Assignment Page 49

74 Amendments of Agreement Page 49

75 Plural and Neutral Gender Page 49

76 Notice Page 50

APPENDLX I

Horizon Oil Sands Project Designation Regulation Page 51

APPENDLX 2

Building Trade Unions Page 52

APPENDIX 3

Schedule A-O Wage Rates as of September 1 2009 Page 53

Schedule A-I Wage Rates as of February 1 2011 Page 58

Schedule A Notes Page 76

APPENDIX 4

Building Trade Collective Agreements Page 60

APPENDIX 5

I Special Projects Work Page 70

APPENDLX 6

I Direct Service Provider Rates Page 72

APPENDIX 7

I Pre-Job Report Page 74

AMENDMENT 3 TO THE HORIZON OIL SANDS PROJECT COLLECTIVE AGREEMENT FOR ALL EMPLOYEES PURSUANT TO THE HORIZON OIL SANDS PROJECT DESIGNATION REGULATION Oc 5652004 ALTA GAZ DECEMBER 31 2004 (LABOUR RELATIONS CODE DIVISION 8)

THIS AGREEMENT made effective as of February 12011

BETWEEN

HORIZON CONSTRUCTION MANAGEMENT LTD (HCML)

- and-

CONSTRUCTION WORKERS UNION (CLAC) LOCAL No 63 affiliated with the Christian Labour Association

of Canada (CLAC)

RECITALS

(a) Canadian Natural Resources Limited (the Owner) owns the Horizon Oil Sands Project (the Project) comprised of leases covering approximately 236000 acres in the Fort McMurray region of Northern Alberta and has received Provincial and Federal Government approval to proceed with the Project as defined below to develop these lands

(b) The Project includes the construction and omiddotperation of a mine a bitumen extraction complex an upgrader and associated infrastructure

(c) The Owner has entered into an agreement with HCML to be primarily responsible for construction of the Project

(d) The Owner and the Parties wish to have the Project constructed as efficiently as possible while maintaining labour relations stability by avoiding disruptions strikes and lockouts

(e) The Owner and the Parties wish to enhance the participation on the Project and the work experience of the qualified trades people and construction workers that are resident in the Proj ect area the rest of Alberta and the rest of Canada

(f) On December 6 2004 the Lieutenant Governor in Council issued the Horizon Oil Sands Project Designation Regulation OC 5652004 Alta Gaz December 31 2004 (the Order in Council) pursuant to which the Lieutenant Governor in Council designated that for the purposes of Section 196 of the Alberta Labour Relations Code (the Code)

(i) The Project is designated as a project to which Division 8 of Part 3 of the Code applies

(ii) HCML is designated as the principal contractor of the Project

(iii) HCML is authorized to bargain collectively in respect of the Project and

Page 2 01119111 (iv) the scope of construction in respect of the Project to which a collective agreement

under Division 8 of Part 3 of the Code (Division 81) will apply is all construction work until completion of Phases 12 and 3 of the Project

The Order in Council is attached as Appendix 1

(g) The Parties recognize that one of the underlying purposes of Division 8 is to remove the possibility of labour disruptions at major construction projects designated as projects under Division 8

(h) CLAC is the bargaining agent of Trade employees ofHCML

(i) The Parties wish to enter into a collective agreement pursuant to Division 8 for the Project and

U) The construction of the Project can best be achieved by having certain terms and conditions of employment apply to HCML as the principal contractor and to all employees in all Trades and their Employers Accordingly the Parties have structured and adopted language to recognize different relationships among the various Employers Unions and Employees as well as various collective agreements and bargaining relationshi ps

(k) This agreement is the third amendment and restatement of the Horizon Oil Sands Project Collective Agreement for all Employees pursuant to the Horizon Oils Sands Project Designation Regulation oC 56512004 Alta Gaz December 31 2004 (Labour Relations Code Division 8) and shall replace and supersede the prior agreement including any amendments thereto or restatements thereof as of its effective date

NOW THEREFORE in consideration of the premises and the mutual covenants and agreements hereinafter set forth HCML and CLAC have agreed to the following terms and conditions that form a collective agreement pursuant to Division 8 in respect of the Project

Page 3 01119111

PART 1 INTRODUCTION

11 Definitions

111 Agreement means this agreement and includes the Recitals Parts 1 through 7 and the Appendices

112 Bargaining Relationship means a collective bargaining relationship established by voluntary recognition or certification

113 Building Trade Collective Agreements means those collective agreements referenced in Appendix 4 of this Agreement as amended from time to time and any subsequent construction collective agreements entered into between the Building Trade Unions and Registered Employers Organizations or individual Employers

114 Building Trade Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a Building Trade Union in respect of that Trade on the day the Employer begins Work on the Project

115 Building Trade Unions means those Unions identified in Appendix 2 which may be amended by HCML from time to time and will include successors or assigns of existing Building Trade Unions

116 CEP means the Communication Energy and Paperworkers (CEP)

117 CLAC Agreement means the terms and conditions set out in Part 3 and Appendix 3 of this Agreement and any successor or replacement terms and conditions

118 CLAC Employee means any person employed to do Work in a Trade and whose Employer has a Bargaining Relationship with CLAC for that Trade on the day the Employer begins Work on the Project

119 CLAC Employer means an Employer of CLAC Employees

1110 Employee means any person employed to do Work within the scope of this Agreement in one or more Trades but does not include any Excluded Employees

1111 Employer means any employer of Employees as defined in Section 1 (m) of the Code and as provided in section 198 of the Code

1112 Employers Organization means any employers organization as defined in Section 1 (n) of the Code the Merit Contractors Association and the Progressive Contractors Association of Canada

1113 Excluded Employee means an Employee who is expressly excluded from the operation of all or part of this Agreement under the terms and conditions of another Project Agreement if any

1114 Industrial Work means Work on process facilities but does not include commercial Work or any of the Special Projects Work

Page 4 01119111 1115 Lockout means a lockout as defined in Section l(p) of the Code whether or not it is

lawful under the Code

1116 Non-Unionized Employee means any person employed to do Work in a Trade for which no union has a Bargaining Relationship with his Employer on the day the Employer begins Work on the Project

1117 Other Unionized Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a union other than CLAC CEP or the Building Trade Unions on the day the Employer begins Work on the Project

1118 OVvller means Canadian Natural Resources Limited and any successor

11 19 Parties means HCML and CLAC together

1120 Principal Residence means the place where an Employee in the settled routine of his life regularly normally or customarily lives with the underlying premise that everyone must be a resident somewhere This definition may be further clarified or amended by a Liaison Committee established in Article 241 In no circumstances mayan Employee claim that his Principal Residence is a construction camp in the Wood Buffalo region

1121 Project Agreement means any collective agreement entered into pursuant to Division 8 and relating to the Project and including as one of its parties HCML andor any other party designated as or as part of a principal contractor in respect of the Project

1122 Sanctioned means charging a member of a Union with an offence under that Unions constitution or bylaws or trying fining suspending expelling or otherwise penalizing that member under such constitution or bylaws and includes threatening to charge try or penalize a member

1123 Scheduled Overtime means all overtime scheduled as part of the hours in a Shift Cycle established pursuant to Article 263 and any overtime hours pursuant to Articles 265 and 266

1124 Special Projects Work means that Work set out in Appendix 5 and any other Work on the Project declared by HCML to be Special Projects Work

l125 Strike means a strike as defined in Section lev) of the Code whether or not it is lawful under the Code

1126 Temporary Foreign Workers means Employees or prospective employees who are not permanent residents of Canada

1127 Trade means a trade jurisdiction as defined in Schedule 2 of Alberta Regulation 34288 - The Construction Industry Transitional Regulation and includes any additional trade jurisdictions which may hereafter be recognized by Alberta legislation or regulations

1128 Union means any trade union that has a Bargaining Relationship with an Employer for any Trade and

1129 Work means any construction work in respect of the Project except for the Special Projects Work and any work performed by the Owners employees The Work ends in respect of any portion of the Project when the OVvller takes possession of that portion of

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

Page 3 01119111

PART 6 - TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work Page 48

PART 7 - GENERAL

71 Severabi lity Page 49

72 Governing Law Page 49

73 Assignment Page 49

74 Amendments of Agreement Page 49

75 Plural and Neutral Gender Page 49

76 Notice Page 50

APPENDLX I

Horizon Oil Sands Project Designation Regulation Page 51

APPENDLX 2

Building Trade Unions Page 52

APPENDIX 3

Schedule A-O Wage Rates as of September 1 2009 Page 53

Schedule A-I Wage Rates as of February 1 2011 Page 58

Schedule A Notes Page 76

APPENDIX 4

Building Trade Collective Agreements Page 60

APPENDIX 5

I Special Projects Work Page 70

APPENDLX 6

I Direct Service Provider Rates Page 72

APPENDIX 7

I Pre-Job Report Page 74

AMENDMENT 3 TO THE HORIZON OIL SANDS PROJECT COLLECTIVE AGREEMENT FOR ALL EMPLOYEES PURSUANT TO THE HORIZON OIL SANDS PROJECT DESIGNATION REGULATION Oc 5652004 ALTA GAZ DECEMBER 31 2004 (LABOUR RELATIONS CODE DIVISION 8)

THIS AGREEMENT made effective as of February 12011

BETWEEN

HORIZON CONSTRUCTION MANAGEMENT LTD (HCML)

- and-

CONSTRUCTION WORKERS UNION (CLAC) LOCAL No 63 affiliated with the Christian Labour Association

of Canada (CLAC)

RECITALS

(a) Canadian Natural Resources Limited (the Owner) owns the Horizon Oil Sands Project (the Project) comprised of leases covering approximately 236000 acres in the Fort McMurray region of Northern Alberta and has received Provincial and Federal Government approval to proceed with the Project as defined below to develop these lands

(b) The Project includes the construction and omiddotperation of a mine a bitumen extraction complex an upgrader and associated infrastructure

(c) The Owner has entered into an agreement with HCML to be primarily responsible for construction of the Project

(d) The Owner and the Parties wish to have the Project constructed as efficiently as possible while maintaining labour relations stability by avoiding disruptions strikes and lockouts

(e) The Owner and the Parties wish to enhance the participation on the Project and the work experience of the qualified trades people and construction workers that are resident in the Proj ect area the rest of Alberta and the rest of Canada

(f) On December 6 2004 the Lieutenant Governor in Council issued the Horizon Oil Sands Project Designation Regulation OC 5652004 Alta Gaz December 31 2004 (the Order in Council) pursuant to which the Lieutenant Governor in Council designated that for the purposes of Section 196 of the Alberta Labour Relations Code (the Code)

(i) The Project is designated as a project to which Division 8 of Part 3 of the Code applies

(ii) HCML is designated as the principal contractor of the Project

(iii) HCML is authorized to bargain collectively in respect of the Project and

Page 2 01119111 (iv) the scope of construction in respect of the Project to which a collective agreement

under Division 8 of Part 3 of the Code (Division 81) will apply is all construction work until completion of Phases 12 and 3 of the Project

The Order in Council is attached as Appendix 1

(g) The Parties recognize that one of the underlying purposes of Division 8 is to remove the possibility of labour disruptions at major construction projects designated as projects under Division 8

(h) CLAC is the bargaining agent of Trade employees ofHCML

(i) The Parties wish to enter into a collective agreement pursuant to Division 8 for the Project and

U) The construction of the Project can best be achieved by having certain terms and conditions of employment apply to HCML as the principal contractor and to all employees in all Trades and their Employers Accordingly the Parties have structured and adopted language to recognize different relationships among the various Employers Unions and Employees as well as various collective agreements and bargaining relationshi ps

(k) This agreement is the third amendment and restatement of the Horizon Oil Sands Project Collective Agreement for all Employees pursuant to the Horizon Oils Sands Project Designation Regulation oC 56512004 Alta Gaz December 31 2004 (Labour Relations Code Division 8) and shall replace and supersede the prior agreement including any amendments thereto or restatements thereof as of its effective date

NOW THEREFORE in consideration of the premises and the mutual covenants and agreements hereinafter set forth HCML and CLAC have agreed to the following terms and conditions that form a collective agreement pursuant to Division 8 in respect of the Project

Page 3 01119111

PART 1 INTRODUCTION

11 Definitions

111 Agreement means this agreement and includes the Recitals Parts 1 through 7 and the Appendices

112 Bargaining Relationship means a collective bargaining relationship established by voluntary recognition or certification

113 Building Trade Collective Agreements means those collective agreements referenced in Appendix 4 of this Agreement as amended from time to time and any subsequent construction collective agreements entered into between the Building Trade Unions and Registered Employers Organizations or individual Employers

114 Building Trade Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a Building Trade Union in respect of that Trade on the day the Employer begins Work on the Project

115 Building Trade Unions means those Unions identified in Appendix 2 which may be amended by HCML from time to time and will include successors or assigns of existing Building Trade Unions

116 CEP means the Communication Energy and Paperworkers (CEP)

117 CLAC Agreement means the terms and conditions set out in Part 3 and Appendix 3 of this Agreement and any successor or replacement terms and conditions

118 CLAC Employee means any person employed to do Work in a Trade and whose Employer has a Bargaining Relationship with CLAC for that Trade on the day the Employer begins Work on the Project

119 CLAC Employer means an Employer of CLAC Employees

1110 Employee means any person employed to do Work within the scope of this Agreement in one or more Trades but does not include any Excluded Employees

1111 Employer means any employer of Employees as defined in Section 1 (m) of the Code and as provided in section 198 of the Code

1112 Employers Organization means any employers organization as defined in Section 1 (n) of the Code the Merit Contractors Association and the Progressive Contractors Association of Canada

1113 Excluded Employee means an Employee who is expressly excluded from the operation of all or part of this Agreement under the terms and conditions of another Project Agreement if any

1114 Industrial Work means Work on process facilities but does not include commercial Work or any of the Special Projects Work

Page 4 01119111 1115 Lockout means a lockout as defined in Section l(p) of the Code whether or not it is

lawful under the Code

1116 Non-Unionized Employee means any person employed to do Work in a Trade for which no union has a Bargaining Relationship with his Employer on the day the Employer begins Work on the Project

1117 Other Unionized Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a union other than CLAC CEP or the Building Trade Unions on the day the Employer begins Work on the Project

1118 OVvller means Canadian Natural Resources Limited and any successor

11 19 Parties means HCML and CLAC together

1120 Principal Residence means the place where an Employee in the settled routine of his life regularly normally or customarily lives with the underlying premise that everyone must be a resident somewhere This definition may be further clarified or amended by a Liaison Committee established in Article 241 In no circumstances mayan Employee claim that his Principal Residence is a construction camp in the Wood Buffalo region

1121 Project Agreement means any collective agreement entered into pursuant to Division 8 and relating to the Project and including as one of its parties HCML andor any other party designated as or as part of a principal contractor in respect of the Project

1122 Sanctioned means charging a member of a Union with an offence under that Unions constitution or bylaws or trying fining suspending expelling or otherwise penalizing that member under such constitution or bylaws and includes threatening to charge try or penalize a member

1123 Scheduled Overtime means all overtime scheduled as part of the hours in a Shift Cycle established pursuant to Article 263 and any overtime hours pursuant to Articles 265 and 266

1124 Special Projects Work means that Work set out in Appendix 5 and any other Work on the Project declared by HCML to be Special Projects Work

l125 Strike means a strike as defined in Section lev) of the Code whether or not it is lawful under the Code

1126 Temporary Foreign Workers means Employees or prospective employees who are not permanent residents of Canada

1127 Trade means a trade jurisdiction as defined in Schedule 2 of Alberta Regulation 34288 - The Construction Industry Transitional Regulation and includes any additional trade jurisdictions which may hereafter be recognized by Alberta legislation or regulations

1128 Union means any trade union that has a Bargaining Relationship with an Employer for any Trade and

1129 Work means any construction work in respect of the Project except for the Special Projects Work and any work performed by the Owners employees The Work ends in respect of any portion of the Project when the OVvller takes possession of that portion of

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

AMENDMENT 3 TO THE HORIZON OIL SANDS PROJECT COLLECTIVE AGREEMENT FOR ALL EMPLOYEES PURSUANT TO THE HORIZON OIL SANDS PROJECT DESIGNATION REGULATION Oc 5652004 ALTA GAZ DECEMBER 31 2004 (LABOUR RELATIONS CODE DIVISION 8)

THIS AGREEMENT made effective as of February 12011

BETWEEN

HORIZON CONSTRUCTION MANAGEMENT LTD (HCML)

- and-

CONSTRUCTION WORKERS UNION (CLAC) LOCAL No 63 affiliated with the Christian Labour Association

of Canada (CLAC)

RECITALS

(a) Canadian Natural Resources Limited (the Owner) owns the Horizon Oil Sands Project (the Project) comprised of leases covering approximately 236000 acres in the Fort McMurray region of Northern Alberta and has received Provincial and Federal Government approval to proceed with the Project as defined below to develop these lands

(b) The Project includes the construction and omiddotperation of a mine a bitumen extraction complex an upgrader and associated infrastructure

(c) The Owner has entered into an agreement with HCML to be primarily responsible for construction of the Project

(d) The Owner and the Parties wish to have the Project constructed as efficiently as possible while maintaining labour relations stability by avoiding disruptions strikes and lockouts

(e) The Owner and the Parties wish to enhance the participation on the Project and the work experience of the qualified trades people and construction workers that are resident in the Proj ect area the rest of Alberta and the rest of Canada

(f) On December 6 2004 the Lieutenant Governor in Council issued the Horizon Oil Sands Project Designation Regulation OC 5652004 Alta Gaz December 31 2004 (the Order in Council) pursuant to which the Lieutenant Governor in Council designated that for the purposes of Section 196 of the Alberta Labour Relations Code (the Code)

(i) The Project is designated as a project to which Division 8 of Part 3 of the Code applies

(ii) HCML is designated as the principal contractor of the Project

(iii) HCML is authorized to bargain collectively in respect of the Project and

Page 2 01119111 (iv) the scope of construction in respect of the Project to which a collective agreement

under Division 8 of Part 3 of the Code (Division 81) will apply is all construction work until completion of Phases 12 and 3 of the Project

The Order in Council is attached as Appendix 1

(g) The Parties recognize that one of the underlying purposes of Division 8 is to remove the possibility of labour disruptions at major construction projects designated as projects under Division 8

(h) CLAC is the bargaining agent of Trade employees ofHCML

(i) The Parties wish to enter into a collective agreement pursuant to Division 8 for the Project and

U) The construction of the Project can best be achieved by having certain terms and conditions of employment apply to HCML as the principal contractor and to all employees in all Trades and their Employers Accordingly the Parties have structured and adopted language to recognize different relationships among the various Employers Unions and Employees as well as various collective agreements and bargaining relationshi ps

(k) This agreement is the third amendment and restatement of the Horizon Oil Sands Project Collective Agreement for all Employees pursuant to the Horizon Oils Sands Project Designation Regulation oC 56512004 Alta Gaz December 31 2004 (Labour Relations Code Division 8) and shall replace and supersede the prior agreement including any amendments thereto or restatements thereof as of its effective date

NOW THEREFORE in consideration of the premises and the mutual covenants and agreements hereinafter set forth HCML and CLAC have agreed to the following terms and conditions that form a collective agreement pursuant to Division 8 in respect of the Project

Page 3 01119111

PART 1 INTRODUCTION

11 Definitions

111 Agreement means this agreement and includes the Recitals Parts 1 through 7 and the Appendices

112 Bargaining Relationship means a collective bargaining relationship established by voluntary recognition or certification

113 Building Trade Collective Agreements means those collective agreements referenced in Appendix 4 of this Agreement as amended from time to time and any subsequent construction collective agreements entered into between the Building Trade Unions and Registered Employers Organizations or individual Employers

114 Building Trade Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a Building Trade Union in respect of that Trade on the day the Employer begins Work on the Project

115 Building Trade Unions means those Unions identified in Appendix 2 which may be amended by HCML from time to time and will include successors or assigns of existing Building Trade Unions

116 CEP means the Communication Energy and Paperworkers (CEP)

117 CLAC Agreement means the terms and conditions set out in Part 3 and Appendix 3 of this Agreement and any successor or replacement terms and conditions

118 CLAC Employee means any person employed to do Work in a Trade and whose Employer has a Bargaining Relationship with CLAC for that Trade on the day the Employer begins Work on the Project

119 CLAC Employer means an Employer of CLAC Employees

1110 Employee means any person employed to do Work within the scope of this Agreement in one or more Trades but does not include any Excluded Employees

1111 Employer means any employer of Employees as defined in Section 1 (m) of the Code and as provided in section 198 of the Code

1112 Employers Organization means any employers organization as defined in Section 1 (n) of the Code the Merit Contractors Association and the Progressive Contractors Association of Canada

1113 Excluded Employee means an Employee who is expressly excluded from the operation of all or part of this Agreement under the terms and conditions of another Project Agreement if any

1114 Industrial Work means Work on process facilities but does not include commercial Work or any of the Special Projects Work

Page 4 01119111 1115 Lockout means a lockout as defined in Section l(p) of the Code whether or not it is

lawful under the Code

1116 Non-Unionized Employee means any person employed to do Work in a Trade for which no union has a Bargaining Relationship with his Employer on the day the Employer begins Work on the Project

1117 Other Unionized Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a union other than CLAC CEP or the Building Trade Unions on the day the Employer begins Work on the Project

1118 OVvller means Canadian Natural Resources Limited and any successor

11 19 Parties means HCML and CLAC together

1120 Principal Residence means the place where an Employee in the settled routine of his life regularly normally or customarily lives with the underlying premise that everyone must be a resident somewhere This definition may be further clarified or amended by a Liaison Committee established in Article 241 In no circumstances mayan Employee claim that his Principal Residence is a construction camp in the Wood Buffalo region

1121 Project Agreement means any collective agreement entered into pursuant to Division 8 and relating to the Project and including as one of its parties HCML andor any other party designated as or as part of a principal contractor in respect of the Project

1122 Sanctioned means charging a member of a Union with an offence under that Unions constitution or bylaws or trying fining suspending expelling or otherwise penalizing that member under such constitution or bylaws and includes threatening to charge try or penalize a member

1123 Scheduled Overtime means all overtime scheduled as part of the hours in a Shift Cycle established pursuant to Article 263 and any overtime hours pursuant to Articles 265 and 266

1124 Special Projects Work means that Work set out in Appendix 5 and any other Work on the Project declared by HCML to be Special Projects Work

l125 Strike means a strike as defined in Section lev) of the Code whether or not it is lawful under the Code

1126 Temporary Foreign Workers means Employees or prospective employees who are not permanent residents of Canada

1127 Trade means a trade jurisdiction as defined in Schedule 2 of Alberta Regulation 34288 - The Construction Industry Transitional Regulation and includes any additional trade jurisdictions which may hereafter be recognized by Alberta legislation or regulations

1128 Union means any trade union that has a Bargaining Relationship with an Employer for any Trade and

1129 Work means any construction work in respect of the Project except for the Special Projects Work and any work performed by the Owners employees The Work ends in respect of any portion of the Project when the OVvller takes possession of that portion of

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

Page 2 01119111 (iv) the scope of construction in respect of the Project to which a collective agreement

under Division 8 of Part 3 of the Code (Division 81) will apply is all construction work until completion of Phases 12 and 3 of the Project

The Order in Council is attached as Appendix 1

(g) The Parties recognize that one of the underlying purposes of Division 8 is to remove the possibility of labour disruptions at major construction projects designated as projects under Division 8

(h) CLAC is the bargaining agent of Trade employees ofHCML

(i) The Parties wish to enter into a collective agreement pursuant to Division 8 for the Project and

U) The construction of the Project can best be achieved by having certain terms and conditions of employment apply to HCML as the principal contractor and to all employees in all Trades and their Employers Accordingly the Parties have structured and adopted language to recognize different relationships among the various Employers Unions and Employees as well as various collective agreements and bargaining relationshi ps

(k) This agreement is the third amendment and restatement of the Horizon Oil Sands Project Collective Agreement for all Employees pursuant to the Horizon Oils Sands Project Designation Regulation oC 56512004 Alta Gaz December 31 2004 (Labour Relations Code Division 8) and shall replace and supersede the prior agreement including any amendments thereto or restatements thereof as of its effective date

NOW THEREFORE in consideration of the premises and the mutual covenants and agreements hereinafter set forth HCML and CLAC have agreed to the following terms and conditions that form a collective agreement pursuant to Division 8 in respect of the Project

Page 3 01119111

PART 1 INTRODUCTION

11 Definitions

111 Agreement means this agreement and includes the Recitals Parts 1 through 7 and the Appendices

112 Bargaining Relationship means a collective bargaining relationship established by voluntary recognition or certification

113 Building Trade Collective Agreements means those collective agreements referenced in Appendix 4 of this Agreement as amended from time to time and any subsequent construction collective agreements entered into between the Building Trade Unions and Registered Employers Organizations or individual Employers

114 Building Trade Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a Building Trade Union in respect of that Trade on the day the Employer begins Work on the Project

115 Building Trade Unions means those Unions identified in Appendix 2 which may be amended by HCML from time to time and will include successors or assigns of existing Building Trade Unions

116 CEP means the Communication Energy and Paperworkers (CEP)

117 CLAC Agreement means the terms and conditions set out in Part 3 and Appendix 3 of this Agreement and any successor or replacement terms and conditions

118 CLAC Employee means any person employed to do Work in a Trade and whose Employer has a Bargaining Relationship with CLAC for that Trade on the day the Employer begins Work on the Project

119 CLAC Employer means an Employer of CLAC Employees

1110 Employee means any person employed to do Work within the scope of this Agreement in one or more Trades but does not include any Excluded Employees

1111 Employer means any employer of Employees as defined in Section 1 (m) of the Code and as provided in section 198 of the Code

1112 Employers Organization means any employers organization as defined in Section 1 (n) of the Code the Merit Contractors Association and the Progressive Contractors Association of Canada

1113 Excluded Employee means an Employee who is expressly excluded from the operation of all or part of this Agreement under the terms and conditions of another Project Agreement if any

1114 Industrial Work means Work on process facilities but does not include commercial Work or any of the Special Projects Work

Page 4 01119111 1115 Lockout means a lockout as defined in Section l(p) of the Code whether or not it is

lawful under the Code

1116 Non-Unionized Employee means any person employed to do Work in a Trade for which no union has a Bargaining Relationship with his Employer on the day the Employer begins Work on the Project

1117 Other Unionized Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a union other than CLAC CEP or the Building Trade Unions on the day the Employer begins Work on the Project

1118 OVvller means Canadian Natural Resources Limited and any successor

11 19 Parties means HCML and CLAC together

1120 Principal Residence means the place where an Employee in the settled routine of his life regularly normally or customarily lives with the underlying premise that everyone must be a resident somewhere This definition may be further clarified or amended by a Liaison Committee established in Article 241 In no circumstances mayan Employee claim that his Principal Residence is a construction camp in the Wood Buffalo region

1121 Project Agreement means any collective agreement entered into pursuant to Division 8 and relating to the Project and including as one of its parties HCML andor any other party designated as or as part of a principal contractor in respect of the Project

1122 Sanctioned means charging a member of a Union with an offence under that Unions constitution or bylaws or trying fining suspending expelling or otherwise penalizing that member under such constitution or bylaws and includes threatening to charge try or penalize a member

1123 Scheduled Overtime means all overtime scheduled as part of the hours in a Shift Cycle established pursuant to Article 263 and any overtime hours pursuant to Articles 265 and 266

1124 Special Projects Work means that Work set out in Appendix 5 and any other Work on the Project declared by HCML to be Special Projects Work

l125 Strike means a strike as defined in Section lev) of the Code whether or not it is lawful under the Code

1126 Temporary Foreign Workers means Employees or prospective employees who are not permanent residents of Canada

1127 Trade means a trade jurisdiction as defined in Schedule 2 of Alberta Regulation 34288 - The Construction Industry Transitional Regulation and includes any additional trade jurisdictions which may hereafter be recognized by Alberta legislation or regulations

1128 Union means any trade union that has a Bargaining Relationship with an Employer for any Trade and

1129 Work means any construction work in respect of the Project except for the Special Projects Work and any work performed by the Owners employees The Work ends in respect of any portion of the Project when the OVvller takes possession of that portion of

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

Page 3 01119111

PART 1 INTRODUCTION

11 Definitions

111 Agreement means this agreement and includes the Recitals Parts 1 through 7 and the Appendices

112 Bargaining Relationship means a collective bargaining relationship established by voluntary recognition or certification

113 Building Trade Collective Agreements means those collective agreements referenced in Appendix 4 of this Agreement as amended from time to time and any subsequent construction collective agreements entered into between the Building Trade Unions and Registered Employers Organizations or individual Employers

114 Building Trade Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a Building Trade Union in respect of that Trade on the day the Employer begins Work on the Project

115 Building Trade Unions means those Unions identified in Appendix 2 which may be amended by HCML from time to time and will include successors or assigns of existing Building Trade Unions

116 CEP means the Communication Energy and Paperworkers (CEP)

117 CLAC Agreement means the terms and conditions set out in Part 3 and Appendix 3 of this Agreement and any successor or replacement terms and conditions

118 CLAC Employee means any person employed to do Work in a Trade and whose Employer has a Bargaining Relationship with CLAC for that Trade on the day the Employer begins Work on the Project

119 CLAC Employer means an Employer of CLAC Employees

1110 Employee means any person employed to do Work within the scope of this Agreement in one or more Trades but does not include any Excluded Employees

1111 Employer means any employer of Employees as defined in Section 1 (m) of the Code and as provided in section 198 of the Code

1112 Employers Organization means any employers organization as defined in Section 1 (n) of the Code the Merit Contractors Association and the Progressive Contractors Association of Canada

1113 Excluded Employee means an Employee who is expressly excluded from the operation of all or part of this Agreement under the terms and conditions of another Project Agreement if any

1114 Industrial Work means Work on process facilities but does not include commercial Work or any of the Special Projects Work

Page 4 01119111 1115 Lockout means a lockout as defined in Section l(p) of the Code whether or not it is

lawful under the Code

1116 Non-Unionized Employee means any person employed to do Work in a Trade for which no union has a Bargaining Relationship with his Employer on the day the Employer begins Work on the Project

1117 Other Unionized Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a union other than CLAC CEP or the Building Trade Unions on the day the Employer begins Work on the Project

1118 OVvller means Canadian Natural Resources Limited and any successor

11 19 Parties means HCML and CLAC together

1120 Principal Residence means the place where an Employee in the settled routine of his life regularly normally or customarily lives with the underlying premise that everyone must be a resident somewhere This definition may be further clarified or amended by a Liaison Committee established in Article 241 In no circumstances mayan Employee claim that his Principal Residence is a construction camp in the Wood Buffalo region

1121 Project Agreement means any collective agreement entered into pursuant to Division 8 and relating to the Project and including as one of its parties HCML andor any other party designated as or as part of a principal contractor in respect of the Project

1122 Sanctioned means charging a member of a Union with an offence under that Unions constitution or bylaws or trying fining suspending expelling or otherwise penalizing that member under such constitution or bylaws and includes threatening to charge try or penalize a member

1123 Scheduled Overtime means all overtime scheduled as part of the hours in a Shift Cycle established pursuant to Article 263 and any overtime hours pursuant to Articles 265 and 266

1124 Special Projects Work means that Work set out in Appendix 5 and any other Work on the Project declared by HCML to be Special Projects Work

l125 Strike means a strike as defined in Section lev) of the Code whether or not it is lawful under the Code

1126 Temporary Foreign Workers means Employees or prospective employees who are not permanent residents of Canada

1127 Trade means a trade jurisdiction as defined in Schedule 2 of Alberta Regulation 34288 - The Construction Industry Transitional Regulation and includes any additional trade jurisdictions which may hereafter be recognized by Alberta legislation or regulations

1128 Union means any trade union that has a Bargaining Relationship with an Employer for any Trade and

1129 Work means any construction work in respect of the Project except for the Special Projects Work and any work performed by the Owners employees The Work ends in respect of any portion of the Project when the OVvller takes possession of that portion of

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

Page 4 01119111 1115 Lockout means a lockout as defined in Section l(p) of the Code whether or not it is

lawful under the Code

1116 Non-Unionized Employee means any person employed to do Work in a Trade for which no union has a Bargaining Relationship with his Employer on the day the Employer begins Work on the Project

1117 Other Unionized Employee means any person employed to do Work in a Trade whose Employer has a Bargaining Relationship with a union other than CLAC CEP or the Building Trade Unions on the day the Employer begins Work on the Project

1118 OVvller means Canadian Natural Resources Limited and any successor

11 19 Parties means HCML and CLAC together

1120 Principal Residence means the place where an Employee in the settled routine of his life regularly normally or customarily lives with the underlying premise that everyone must be a resident somewhere This definition may be further clarified or amended by a Liaison Committee established in Article 241 In no circumstances mayan Employee claim that his Principal Residence is a construction camp in the Wood Buffalo region

1121 Project Agreement means any collective agreement entered into pursuant to Division 8 and relating to the Project and including as one of its parties HCML andor any other party designated as or as part of a principal contractor in respect of the Project

1122 Sanctioned means charging a member of a Union with an offence under that Unions constitution or bylaws or trying fining suspending expelling or otherwise penalizing that member under such constitution or bylaws and includes threatening to charge try or penalize a member

1123 Scheduled Overtime means all overtime scheduled as part of the hours in a Shift Cycle established pursuant to Article 263 and any overtime hours pursuant to Articles 265 and 266

1124 Special Projects Work means that Work set out in Appendix 5 and any other Work on the Project declared by HCML to be Special Projects Work

l125 Strike means a strike as defined in Section lev) of the Code whether or not it is lawful under the Code

1126 Temporary Foreign Workers means Employees or prospective employees who are not permanent residents of Canada

1127 Trade means a trade jurisdiction as defined in Schedule 2 of Alberta Regulation 34288 - The Construction Industry Transitional Regulation and includes any additional trade jurisdictions which may hereafter be recognized by Alberta legislation or regulations

1128 Union means any trade union that has a Bargaining Relationship with an Employer for any Trade and

1129 Work means any construction work in respect of the Project except for the Special Projects Work and any work performed by the Owners employees The Work ends in respect of any portion of the Project when the OVvller takes possession of that portion of

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

PageS 01119111 the Project or commissioning of that portion of the Project commences In the event construction activities are undertaken after the Owner takes possession or after the start of commissioning of any part of the Project and is not associated with normal maintenance activities those activities shall be considered to be Work under this Agreement

12 Underlying Terms

121 This Agreement is a collective agreement as provided for in Division 8 HCML and CLAC have negotiated and entered into this Agreement under Division 8

122 HCML or another principal contractor may negotiate and enter into other Project Agreements which may apply to specific Building Trade Employees Other Unionized Employees or Excluded Employees

123 Where HCML or the Owner have participated in any way in the processes and administrative matters contemplated in this Agreement it is only for the purposes of this document and the enhancement of the Project and in no way can be construed to create a Bargaining Relationship or a collective agreement with any Union other than between HCML and CLAC For the sake of clarity and notwithstanding any other provision in this Agreement

(a) neither HCMLs status as a principal contractor nor its negotiation of and entry into this Agreement nor its participation in any of the committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee (other than those who are paid for their work directly by HCML) or has a Bargaining Relationship with any Union other than CLAC

(b) neither the Owners role in the Project nor its participation in any committees referenced in Article 24 of this Agreement nor its participation in the development and implementation of any policies referenced in Article 211 of this Agreement means that it is the Employer of any Employee or has a Bargaining Relationship with any Union

124 This Agreement only applies in respect of the Project Notwithstanding anything to the contrary in this Agreement neither HCML nor the Owner have a Bargaining Relationship with any Union other than the Bargaining Relationship between HCML and CLAC

125 The Owner reserves the right to replace HCML as principal contractor or to designate additional parties as principal contractors under the provisions of Division 8 In the event that HCML is replaced as or as part of a principal contractor all references to HCML in this Agreement will be deemed to refer to the replacement and the replacement is bound by this Agreement

126 The Parties will support and comply with the provisions of this Agreement and will not

(a) take any action to challenge the validity of all or any part of this Agreement or any other Project Agreement or

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

Page 6 01119111 (b) take any steps to encourage or support others to challenge the validity of all or

any part of this Agreement or any other Project Agreement

127 Should the validity of this Agreement or any part of it be challenged by anyone in proceedings before the Alberta Labour Relations Board or any other competent court arbitrator or other judicial or administrative body the Parties agree to take all necessary steps to defend the validity of the Agreement or that part being challenged Should a declaration be made that all or any part of this Agreement is invalid the Parties agree to take all necessary steps to cure that invalidity including effecting any amendments to the Agreement or entering into a new agreement

128 CLAC hereby agrees to provide unqualified support for any applications made by HCML or the Owner to the Government of Alberta to extend the duration of the designation of the Project as a project to which Part 3 Division 8 of the Code applies to such date as may be requested by HCML or the Owner

13 Application and Duration of this Agreement

131 This Amendment 3 to the Agreement is effective and in force from February 1 2011 to September 302014 unless it is otherwise tenninated as described below

132 The Parties are bound by this Amendment 3 to the Agreement from February 12011 An Employer and its Employees will be hound by the tenns and conditions of this Agreement when the Employer and its Employees begin to carry out Work and will continue to be bound by this Agreement for the duration of the Work

133 This Agreement also applies to employees and employers who provide or perfonn Special Projects Work as provided in Part 6

134 HCML can tenninate this Agreement in whole or in part on the following tenns

(a) without notice if the Owner pennanently abandons construction of the Project or

(b) for any other reason upon 90 days written notice to CLAC

14 Parts of this Agreement

141 The Parties have entered into this Agreement as a means of achieving unifonnity in respect of certain tenns and conditions of employment for Employees while respecting other tenns and conditions of employment in collective agreements entered into by CLAC the Building Trade Unions and terms and conditions of employment applicable to Non-Unionized Employees The remainder of this Agreement is divided into the following Parts

PART 2 Tenns And Conditions Applying To All Employees And Employers

PART 3 Additional Tenns And Conditions Applying To CLAC Employees And CLAC Employers

PART 4 Additional Tenns And Conditions Applying To Building Trade Employees And Their Employers

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

Page 7 011911 PART 5 Additional Terms And Conditions Applying To Non-Unionized

Other Unionized Employees And Their Employers Employees

PART 6 Terms And Conditions Applying To Special Projects Work and

PART 7 General Terms and Conditions

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement

Page 8 01119111

PART 2 TERMS AND CONDITIONS APPLYING TO ALL EMPLOYEES AND EMPLOYERS

21 Application of this Part and Resolution of Grievances

211 The Recitals and Parts 1 2 and 7 of this Agreement apply to all Employees and Employers providing Work on the Project and prevail over any tenn or condition set out elsewhere in this Agreement Any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) and any other tenns and conditions of employment that would otherwise apply to Employees and Employers do not apply to Employees or Employers in respect of the Project to the extent that they conflict with the Recitals or Parts 1 2 or 7 of this Agreement

212 HCML has the sole authority to decide whether any provision in Parts 3 through 6 of this Agreement (including the Appendices referred to in those Parts) conflict with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement HCML also has the authority to decide which Parts of this Agreement apply to certain Employees and Employers HCMLs decisions under this Article will be final and binding

213 Any dispute or grievance relating to whether any Part of this Agreement any provision in any Appendix any other collective agreement or any other contract of employment conflicts with the provisions in the Recitals or Parts 1 2 or 7 of this Agreement will be submitted to HCML in accordance with the procedure set out below This Article displaces and prevails over the grievance and arbitration provisions in any other Part or Appendix of this Agreement The procedure to be followed in the event of such a dispute is as follows

Step 1 The dispute will be submitted by any affected Employer an Employee or Employees or a Union to HCML by notice in writing within 7 days of the dispute ansmg

Step 2 Within 7 days of receipt of notice of the dispute HCML will meet with the party giving notice of the dispute along with any Employers or Unions directly affected by the dispute and will hear representations from these parties in respect of the dispute HCML has the sole discretion and jurisdiction to detennine the specific procedures to be followed during this meeting

Step 3 HCML will render its decision in respect to the dispute within 14 days after the meeting with the parties This decision will be final and binding and will not be subject to review by any Court Decisions made by HCML will not impose any retroactive financial liability on HCML any Employer any Union or any Employee

214 All time limits in this Article are directory and not mandatory

215 HCML can amend the procedure outlined in 213 by providing CLAC with written notice of the same

Page 9 01119111 22 Strikes and Lockouts

221 There will be no Strikes Lockouts work stoppages work slowdowns or other action designed to limit output in respect of the Work and Special Projects Work for the duration of this Agreement Should any Union Employees or Employers become engaged in any Strike or Lockout elsewhere in Alberta the Strike or Lockout will not affect the Work or Special Projects Work

23 Collective Agreement Grievances

231 Any grievances relating to the terms and conditions in the Recitals or Parts 12 or 7 of this Agreement (with the exception of disputes or disagreements referred to in Article 21) will be resolved in accordance with the terms and conditions of the grievance procedures in the Parts of this Agreement and the Appendices which apply to the affected Employee and Employer HCML will be provided with notice of all written grievances at the time such grievances are filed HCML will have the right to intervene as a party in any such grievances No relief may be granted against HCML or the Owner in any proceedings instituted under this Article except relief may be granted against HCML where the grievance involves HCML as an Employer

232 Should any Union refuse or fail to participate in the handling or processing of any grievance (other than for reasons that the Union believes an Employee-instigated grievance does not have merit) any affected Employee will be entitled to process the grievance to arbitration utilizing the grievance and arbitration procedure set out in Part 3 In the event this occurs the cost of instituting the procedures for processing the grievance will be borne by the affected Employee unless the Employee is successful in the grievance If the Employee is successful in the grievance the Employees share of the arbitrators fees will be paid by the Employer If there is disagreement over whether the Employee was successful that disagreement will be decided by the Arbitrator

24 Committees

241 One or more Liaison Committees (LC) comprised of representatives of the Owner the Parties other Unions Employers and others as determined by the Parties will be established The purpose of an LC will be to provide advice and address any concerns relating to construction of the Project

242 The Parties will establish terms and conditions of reference for the LC giving due recognition to the language and intent and purposes of this Agreement rules of procedure for an LC to carry out its responsibilities and processes to ensure that decisions of an LC that affect this Agreement are recommended to the Parties for incorporation into this Agreement

243 The role of an LC will include

(a) Providing advice and addressing any concerns relating to construction of the Project

(b) Assisting in the development implementation and administration of initiatives towards the enhancement of quality and productivity

(c) Providing advice on the establishment of methods of resolving issues that the Parties and the persons bound by this Agreement are unable to quickly resolve

Page 10 01119111 (d) Coordinating activities with the contractors association established by HCML

including coordinating activities with them and

(e) Addressing such matters as are referred to it by this Agreement

However an LC does not have the power to take any actions or make any decisions affecting the terms and conditions of this Agreement without first obtaining express written permission from HCML or the Owner An LC will respect the roles and responsibilities of all parties relating to collective bargaining administration of this Agreement and other bargaining agency roles and responsibilities HCML has the power to dissolve an LC The Parties acting together have the power to replace members of an LC

244 Additional committees may be established pursuant to the Principal Agreement or by the Parties involving representatives of the Owner HCML CLAC other Unions Employers and others The purpose of these committees will be to provide advice establish policies and rules andor resolve issues relating to camp conditions health and safety matters and any other issues those parties deem appropriate

245 If any committee is unable to effectively and efficiently accomplish the above objectives the Parties may act in place of the committee to accomplish those objectives

25 Wages and Compensation

251 Subject to Articles 252 253 and 254 compensation including wages statutory holiday pay and vacation pay will be paid in accordance with the terms and conditions of the applicable Appendices under Parts 3 through 5 of this Agreement As a general principle the Parties would like journeymen Employees within the same Trade doing Industrial Work and having the same general qualifications to be eligible for relatively equivalent compensation in the aggregate (including such things as wages bonuses statutory holiday pay vacation pay and overtime pay during the Shift Cycle) for all scheduled hours

252 The Parties recognize that Employers may have to adjust elements of compensation payable to Employees subject to Articles 253 and 254

253 Subject to HCML approval elements of compensation may be adjusted in respect to specific Employees in particular Trades HCML will generally not approve any increases to elements of compensation which may have a detrimental impact on other Employers which exceed the compensation payable to similar Employees in the Wood Buffalo area of Alberta or which would have the effect of increasing compensation for overtime

254 This Agreement does not preclude any agreement between an Employer and a Union which is entered into subsequent to the commencement of this Agreement and which enables an Employer to pay wage rates or other compensation in amounts lower than those specified in Parts 3 or 4 or Appendices 3 4 or 6

26 Work Schedules

261 HCML will create work schedules necessary for the efficient construction of the Project Each single period of working days and days off will be referred to as a Shift Cycle Each single work day may be referred to as a shift The regularly scheduled hours in a Shift Cycle may be referred to as scheduled hours

Page 11 01119111 262 Subject to Article 263 HCML and Employers may direct which Shift Cycles certain

Employees will work Employers will communicate Shift Cycles to their Employees on or before the day they begin work on the Project Employees will be notified of any Shift Cycle change by their Employers no later than the end of the first day worked in the Shift Cycle immediately preceding the change unless the Parties agree on shorter notice

263 Employers are required to explain the applicable Shift Cycle to all employees prior to them starting their first cycle This explanation shall include the number of working days and days off where those days fall within the Shift Cycle and the overtime payable for each day of the Shift Cycle Without limiting the foregoing HCML anticipates Employees will be scheduled to work one of the following Shift Cycles

(a) Commencing on any day 10 days of 10 hours of work per day followed by 4 days off (Shift Cycle 1) which will result in payment for 70 hours at the Employees base wage rate and 30 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(b) Commencing on any day 14 days of 10 hours of work per day followed by 7 days off (Shift Cycle 2) which will result in payment of the equivalent of 95 hours at the Employees base wage rate and 45 hours at 15 times the amounts used to calculate overtime pay in Parts 3 or 4 and Appendices 3 or 4 whichever applies

(c) Commencing on any day 20 days of 10 hours of work per day followed by 8 days off (Shift Cycle 3) which will result in payment for 128 hours at the Employees base wage rate and 72 hours at 15 times the amounts used to calculate overtime pay in Parts 3 and 4 or Appendices 3 or 4 whichever applies

The entitlements for straight time and overtime payments are approved by Alberta Workplace Policy and Legislation (Employment Standards) and apply to the any day start The straight time and overtime payment schedules ensure parity for all workers regardless of the day of the week they actually commence the Shift Cycle For standardization of payments the Shift Cycle is deemed to commence on a Thursday regardless of the actual week day that the Shift Cycle commences

(d) Such other Shift Cycles as may be established by HCML subject to the Parties agreeing on the overtime pay which will apply

264 The hours set out in Article 263 are intended to identify the regular hours of work shift hours and overtime hours and are not to be construed as a guarantee of hours of work per day per shift or per Shift Cycle

265 HCML will determine or approve changes to the start time end time or the number of shifts for each day Employers must request HCML approval of a change at least 4 hours before the end of the preceding shift HCML will respond to the request within 2 hours of the request If HCML does not respond the requested change is not approved

266 Employers must provide notice to Employees of the deletion of an entire shift or several shifts at least 3 days prior to the effective date of the deletion Failure of an Employer to give the notice required in this Article 266 except as otherwise contemplated in the relevant provisions in Part 3 or 4 and Appendices 3 or 4 will result in affected Employees being paid 15 times their base wage rate for all regularly scheduled hours on

Page 12 their next shift This Article expressly does not apply to the deletion of a of a direction from the Owner or HCML to cease doing the Work

011911 shift arising out

267 Scheduled Overtime is mandatory and not voluntary

268 Employers Employees overtime

will who

attempt to distribute normally perform the

unscheduled overtime work work and who indicate they

evenly among wish to work

269 Overtime must be approved by HCML or its designate

2610 All overtime other than overtime worked as part of a Shift Cycle will be paid pursuant to the relevant provisions in Part 3 or 4 and Appendices 3 or 4 whichever is applicable

2611 There will be 2 paid coffee breaks of 15 minutes duration on each shift Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

2612 Employees working day shifts will be given an unpaid meal period of 112 hour per shift

2613 If Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of 12 hour and a meal in accordance with Part 3 4 or 6 as the case may be

27 Hiring Practices

271 Employers may engage Employees who are not residents of Alberta but who are qualified under industry-recognized supervisory training programs as general foremen working foremen lead hands or for any other position where one of the duties of the Employee involves supervision of other Employees

272 Employers and Unions will comply with commitments given by the Owner to give priority in respect to the hiring of qualified persons as follows aboriginal residents of the Wood Buffalo area of Alberta aboriginal residents of Alberta women other residents of the Wood Buffalo area of Alberta and the residents of Alberta A further preference will be given in respect to residents of other provinces and territories of Canada

273 Employers will optimize the use of apprentices at all stages of the applicable apprenticeship programs subject to legislative and regulatory requirements

274 The Parties recognize that due to potential shortages of qualified labour during the execution of the Project it may be necessary for some Employers to hire some Temporary Foreign Workers In consultation with affected Unions and HCML Employers wishing to hire such Foreign Workers will establish protocols for hiring layoff and termination of Temporary Foreign Workers

28 Transportation and Trave)

281 The purpose of this Article is to

(a) attract Employees to work on the Project by providing a combination of fly-inflyshyout and bussing and

Page 13 011911 (b) provide a fair means of compensating Employees for travel

282 Subject to the exceptions stated in the rest of this Article Employers will provide Employees with air bus or other ground transportation between Edmonton Fort McMurray or such other locations as HCML may designate and the Project site in the following situations

(a) new hires

(b) Employees leaving for or returning from days off

(c) Employees who are laid off or

(d) probationary employees terminated for reasons other than just cause

283 Notwithstanding any other provision in Article 28 Employees who are terminated for cause or who quit during a Shift Cycle will only be provided road transportation when requested by the Employee from the Project site to Fort McMurray or Edmonton and such Employees will not receive any travel allowances they would ordinarily be entitled to for that Shift Cycle

284 Where an Employee is laid off during his days off the Employer will assume responsibility to promptly return all the Employees personal effects and tools to his Principal Residence at no cost to the Employee

285 The following Employees will generally not be provided air transportation

(a) those whose Principal Residence is located in a 300 kilometer (km) radius of the Project and

(b) those living in the area of the Town of Athabasca

286 All references to distances are radial (straight-line) distances not road distances For the purposes of this Agreement Designated Location shall mean for any given Employee the Edmonton International Airport the Calgary International Airport or any other location as specified in writing at the sole discretion of HCML HCML will notify Employers and the relevant Unions of new Designated Locations and if applicable transportation allowances for those Employees

287 Disputes over where an Employee s Principal Residence is will be submitted and decided pursuant to Article 21 of this Agreement or may be assigned by HCML to an LC for determination

288 Daily Travel for Local Residents

An Employee whose Principal Residence is located within an 85 kilometer radius of the Project site including residents of Anzac Fort McKay and Saprae Creek will be provided daily return road transportation from Fort McMurray and Fort McKay to the Project site at no cost to the Employee A daily travel allowance will be provided at the rate of $2750 for those Employees living in Fort McMurray Anzac and Saprae Creek and who use the road service Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 289 2810 2811 and 2812

Page 14 01119111 289 Shift Cycle Travel for Regional Residents

Road transportation is not available to Employees whose Principal Residence is between a distance of 85 kilometer (km) radius from the Project site excluding residents of Anzac Fort McKay and Saprae Creek and 300 km radius from the Project site including the Athabasca area Employees whose Principal Residence is between 85 km and 300 km from the Project site will be provided with a travel allowance per Shift Cycle as follows

bull 85 km to 149 km $ 6000 bull 150kmt0224km $ 8500or bull 225 km to 300 km (including Athabasca area) $ 11000

Employees eligible for the transportation and allowance described in this Article are not eligible for the transportation and allowances described in Articles 288 2810 28 11 and 2812

2810 Shift Cycle Travel by Road from Edmonton (for most Employees working Shift Cycles containing less than 10 consecutive scheduled days of work)

(a) The Employer will make road transportation available to the Employee from Edmonton or other locations as prescribed by HCML and the Owner to the Project site and return at no cost to Employees working Shift Cycles containing less than 10 consecutive scheduled days of work

(b) The Employee will be provided a travel schedule from their Employer It is the Employees responsibility to make arrangements to meet these schedules

(c) Employees will be provided transportation on the day before commencement of work during their Shift Cycle and as soon as possible following completion of their Shift Cycle

(d) Baggage limitations will comply with generally accepted industry practice for weight and size

(e) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(f) In the event of missed transportation the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2811 Shift Cycle Travel by Road from the Edmonton International Airport (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work when air travel is not available)

(a) The Employer will make road transportation available to the Employee from Edmonton to the Project site and return at no cost to Employees working Shift Cycles containing at least 10 consecutive scheduled days of work and to Employees whose Principal Residence is not in Alberta and the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

PagelS 01119111 (b) The Employee will be provided a travel schedule from their Employer It is the

Employees responsibility to make arrangements to meet these schedules

(c) Employees using this service will be provided an allowance of $62 per Shift Cycle or such greater amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than Edmonton

(d) An additional transportation allowance per Shift Cycle will be provided for Employees using this transportation service and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport or such other Edmonton departure points as may be provided by the Employer (with HCML approval) and based on the Employees Principal Residence being the following distance from the Edmonton International Airport

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 8500

bull over 224 km $ 11000 or bull such amount as HCML or an Employer (with HCMLs approval) may

prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport

(e) Employees will be provided bussing on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(f) Baggage limitations will comply with generally accepted industry practice for weight and size baggage allowance

(g) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(h) In the event of a missed bus or other road transportation service the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid

2812 Shift Cycle Travel by Air from the Edmonton International Airport Calgary International Airport or other Designated Locations as approved in writing by HCML (primarily for Shift Cycles containing at least 10 consecutive scheduled days of work) or for Employees whose Principal Residence is not in Alberta and when the Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days Travel by Air will be provided by Owners Air Carrier unless otherwise approved in writing by HCML HCML or the Owner shall have no obligation to maintain any Hight departure points where demand in its sole discretion does not warrant such flights

(a) If air travel is not available road transportation will be provided from the Edmonton International Airport in accordance with Article 2811

(b) Flight Conditions

Upon commencement of an air travel program to the Project site the following will apply to Employees working Shift Cycles with at least 10 consecutive scheduled days of work or whose Principal Residence is not in Alberta and the

Page 16 01119111 Employee is required by his Employer to reside in Project accommodation for at least 14 consecutive days

(i) All flights will be in strict accordance with Canadian Aviation Regulations (CAR) and Transport Canada approved standards and practices Those regulations pertaining to passenger conduct will be strictly enforced

(ii) The Employer will make available to the Employee air travel from the Edmonton International Airport the Calgary International Airport or other additional Designated Locations when approved by HCML in writing to the Project site and return at no cost to the Employee The Employee will be provided with a schedule of his Employers flight days and travel schedule It is the Employees responsibility to make arrangements to meet these schedules

(iii) Employees will be provided flights on the day before commencement of their Shift Cycle and as soon as possible following completion of their Shift Cycle

(iv) Baggage allowance for checked and carry-on baggage will comply with generally accepted airline industry practice for weight and size limits This generally means that checked baggage allowance is 2 bags with a maximum weight of 32 kg (70 Ibs) in total and carry-on allowance is 2 pieces with a maximum weight of 10 kg (22 Ibs)

(v) Excess luggage and tools approved by the Employer will be shipped via ground transportation Employers will provide safe transportation and storage for these tools

(vi) Employees will be provided transportation from the Project site aerodrome to the Project accommodation or camp and return in accordance with their scheduled flights

(c) An additional transportation allowance per Shift Cycle will be provided to Employees using air travel and whose Principal Residence is located greater than 85 kilometers (km) from the Edmonton International Airport the Calgary International Airport or other specific Designated Locations (only when approved by HCML in writing) The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Edmonton International Airport the Calgary International Airport or the specific Designated Location whichever is closer to the Employees Principal Residence

bull 85 km to 149 km $ 6000

bull 150 km to 224 km $ 85 00 or

bull over 224 km $ 11000

(d) Missed Flights

(i) The Employee will be provided Employer contact information

(ii) If the Employee is unable to make his scheduled flight the Employee must contact the Employer with a minimum of 24 hours notice of his inability to make scheduled Alberta flights or 7 days notice of his inability

Page 17 01119111 to make scheduled out-of-province flights and provide the following information

bull reasons for missing the flight bull alternative travel arrangements and bull estimated arrival or departure time

(iii) Failure by the Employee to provide this notice to the Employer will result in an amoWlt as HCML or an Employer (with HCML approval) may prescribe in respect of Employees traveling from a Designated Location being deducted from the Employees pay as a pre-estimate of the expense the Employer has incurred Exceptions to notice being provided by the Employee to the Employer for specific circumstances will be decided by the Employer

(iv) As a result of the missed flight the Employee is not entitled to compensation for hours missed and any travel allowances that would otherwise be paid for the Shift Cycle

(v) The Employer may make arrangements to reschedule the Employee on the next available flight If the Employee makes his own alternate travel arrangements to get to the Project site the Employee does so at his or her own cost

(vi) Commercial air flights may be used only with Owner and HCML written approval

(e) Flight Delays

Where flights to and from the Project site are delayed for less than 4 hours due to inclement weather or aviation related delays no compensation will be paid to the Employee

Where flights to the Project site are delayed for greater than 4 hours due to inclement weather or aviation related delays the following conditions will apply

(i) Provided notification of the flight delay has been made available on the Air Carriers emergency number which is posted at each Project site camp at least 4 hours prior to scheduled departure no compensation will be provided to Employees

(ii) If notification of the flight delay has been posted less than 4 hours prior to scheduled departure and the Employee reports to the Air Carriers departure point the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay or

(iii) If in-transit flight delays impacts the Employees availability to work the next scheduled shift for those Employees and the Employees remain in the care and custody of the Air Carrier the Employees will be paid 2 hours show-up time at their regular base rate as total compensation for the delay

If the flight delay leaving the Project site extends for a prolonged period and ground transportation is not provided in lieu of air travel as per the following

Page 18 01119111 paragraphs Employees remaining on the Project site due to this delay may be provided the opportunity to work at their Employers discretion at their applicable rate of pay

If the flight delay is due solely to inclement weather ground transportation may be provided to or from the Project site in lieu of air travel at the option of HCML or the Air Carrier In this case Employees will be compensated $3100 per one way trip to Edmonton International Airport or such amount as may be prescribed in writing by HCML for Calgary International Airport or other Designated Locations No allowances will be payable in the event ground transportation to an alternate airstrip in the Wood Buffalo region is provided

If in-transit flight delays to Designated Locations supported by the Owners Air Carrier other than the Edmonton International Airport are due to inclement weather or aviation related delays the Air Carrier at their option may provide road transportation in lieu of air travel and if required will provide interim accommodation and appropriate meals

Subject to approval by HCML in the event weather or aviation related delays of flights to the site require the re-scheduled flight to depart the following day overnight accommodation and meals will be provided to Employees whose Principal Residence is more than 85 kilometers (km) from the flight departure location provided that the Employee has reported to the departure terminal at the flight departure location and the Employee has not been able to return to his Principal Residence during the delay

When air and road transportation are not provided an Employee whose Principal Residence is outside a 225 km radius from the Project site will be paid a travel allowance per Shift Cycle of $11000 or such amount as HCML or an Employer (with HCMLs approval) may prescribe in writing in respect of Employees traveling from locations other than the Edmonton International Airport or the Calgary International Airport

(f) When an Employer hires an Employee for a start date during a Shift Cycle a transportation allowance will be provided to the Employee only when the Employee is responsible for his own transportation to the Project site for his first Shift Cycle The allowances are as follows with the distances referring to the distance of the Employees Principal Residence from the Project site

bull 225 km to 304 km $11000

bull 305 km to 374 km $13500

bull 375 km to 449 km $16000

bull 450 km to 525 km $18500 or

bull over 525 km $21000

29 Accommodation

291 Employers will provide accommodation or a Living Out Allowance (LOA) to Employees whose Principal Residence is outside of an 85 kilometer (km) radius from the Project site Residents of Fort McMurray Anzac and Saprae Creek will be considered to be within the 85 km radius Employees up to and including the level of General Foreman will be eligible for camp accommodation HCML has the sole discretion to determine

Page 19 0111911 which Employees will be provided with on-site camp accommodation off-site accommodation or when Employees will be provided with an LOA

292 Employees who are provided with offsite accommodation which is outside of a 30 km straight line radius from the Project site will be provided a transportation allowance of $2750 per day worked

293 Employers will establish a subsistence rate and an LOA rate for Employees who are eligible for camp accommodation but for whom camp accommodation is not provided The subsistence and LOA rates will be based on terms and conditions in relevant collective agreements or practices in the area and will be subject to HCML approval In addition to the subsistence or LOA rates these Employees will be provided

(a) a transportation allowance of $2750 per day worked allowance for those Employees whose alternative accommodation is outside of a 30 km straight line radius from the Project site and

(b) access to the transportation provisions but not the travel allowance provisions in Article 288 Daily Travel for Local Residents

294 Camp facilities and catering services will be of a comparable standard for all on site construction camps

(a) The following are camp accommodation conditions

(i) Self-packed bag lunches (mid-shift meals) will be made available to camp residents prior to leaving camp for the start of the shift

(ii) HCML or Owner camp policy and rules will apply to all Employees staying in camp accommodation on the Project site

(b) A camp steering committee will be formed to provide advice on andor resolve issues relating to on site camp conditions and disputes The mandate of this committee will be defined by HCML and the Owner in the camp policy and rules

295 Any rights of access to Project camp accommodation created by this Agreement or any documents referred to in this Agreement are expressly subject to the rights of the Owner andor HCML to assert their rights as owner manager or occupant of the Project and the camp management to deny or restrict access to the Project accommodation to any person

210 Site Stability

2101 The Parties acknowledge that Division 8 and this Agreement are designed to achieve labour relations stability on the Project It is a violation of this Agreement for the Parties Employers and Employees to do anything to harm delay or otherwise impede construction of the Project Any person engaging in such conduct will be subject to immediate removal from the Project site

2102 HCML may establish reasonable standard policies respecting access to the Project site In addition the Parties recognize that the Owner has the right to create its own policies in this area All Employees and Union representatives will be required to undergo such orientations and agree to such access policies as the Owner or HCML may require

Page 20 01119111 2103 The Parties recognize that because there may be Employees represented by various

Unions working on the Project there is a possibility of conflict between Employees represented by rival Unions or between Union Employees and Non-Unionized Employees The Parties will not tolerate any form of violence harassment intimidation bullying or any other disparaging or demeaning conduct directed by Employees Union representatives or other persons against other Employees Union representatives or other persons based on Union affiliation or lack of Union affiliation This prohibition includes all verbal communications written materials and gestures The Owner and HCML have the right to remove any Employee Union representative or other person from the Project site should they engage in any such activities

2104 The Parties agree it is in the best interests of the Owner the Parties Employers and Employees to have Employees working on the Project who are free to work for any Employer regardless of Union affiliation or lack of Union affiliation The Parties are aware that certain Unions have Sanctioned their members for working for Employers who do not have a Bargaining Relationship with that Union The Parties wish to discourage such Sanctions against Employees Therefore the following will apply

(a) HCML will refuse to allow on the Project site any representative of a Union which has Sanctioned one or more of its members for working on the Project for an Employer who does not have a Bargaining Relationship with that Union

(b) If any Union Sanctions an Employee for working on the Project for an Employer who does not have a Bargaining Relationship with that Union then HCML may direct that any check-off or other Employer remittances to the Union provided for in Parts 3 or 4 and Appendices 3 4 or 6 should terminate or be suspended (except for payments for pension or health and welfare benefits) All Employers notified of this direction will thereafter cease to make these payments to the Union named in the direction and the amounts withheld will be retained by the Employers or paid as directed by HCML to Employees who have been Sanctioned Employers who do not comply with this provision will be subject to a reduction of their contracts with the Owner by an amount that is equal to 10 times the amount of the payments not withheld Any such reduction will be deemed to be an amount paid as a genuine pre-estimate of damages suffered by HCML andor by another Employer or Employers as a result of the Employers failure to comply with this Article and not as a penalty

(c) For the purposes of this Article HCML will be entitled to audit the books of an Employer in order to determine whether any amounts referred to in part (b) of this Article have been paid to a Union The cost of an audit will be borne by the Employer

2105 No Employee will refuse or threaten to refuse to perform Work for his Employer for reason that

(a) other work was or will be performed or was not or will not be performed by any persons who were not or are not members of a particular Union or

(b) any materials manufactured products fabricated products or equipment have been or will be provided by any person or Employer who is not a member of or does not have a Bargaining Relationship with a particular Union

Page 21 01119111 211 Site Policies

2111 HCML or the Owner will establish policies relating to health safety (including alcohol and drug programs) environment and other matters relating to management of the Project site which will apply to all Employees and Employers but will not form a part of this Agreement To the extent of any conflict these policies will prevail over provisions relating to the same or similar subject matter in Parts 3 or 4 and Appendices 3 or 4

212 Terms and Conditions of Emplovment

2121 The Parties recognize that when bidding on Work Employers rely on their Bargaining Relationships or lack of Bargaining Relationships in determining such things as the amount of their bid and the availability of skilled Trades persons As a result the Parties believe it is important for Employers to have some certainty in respect of the terms and conditions of employment they will be bound by when they perform the Work Therefore the terms of employment in this Agreement that are in place and applicable to an Employer and its Employees at the time the Employer and the Employees commence Work on the Project will continue to apply to that Employer and its Employees irrespective of a subsequent change in bargaining agent that may apply to the Employer and its Employees for all Work performed until the Employer has ceased all Work on the Project As a result

(a) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with CLAC or another Union other than a Building Trade Union in respect of one or more Trades the terms of employment applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the those Trades until the end of the Project

(b) if at the commencement of its Work on the Project an Employer has a Bargaining Relationship with a Building Trade Union the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by Employees of that Employer in the Trade represented by the Building Trade Union until the end of the Project

(c) if at the commencement of its Work on the Project an Employer has no Bargaining Relationship with a Union for a Trade the terms and conditions hereunder applicable to that Employer at the commencement of its Work will continue to apply in respect of all Work performed by the Employees of that Employer working in that Trade until the end of the Project

(d) the acquisition by a Union of bargaining rights in respect to an Employer or the termination of bargaining rights in respect to an Employer that occurs subsequent to the Employer commencing Work on the Project will not alter the terms and conditions of employment that are applicable to that Employer and its Employees when carrying out Work on the Project

2122 Pre-Job Reports

Prior to the start of each Employers Work on the Project site a Pre-Job Report shall be prepared by the Employer and if applicable the relevant Union The Pre-Job Report will be presented to HCML for approval The Pre-Job Report will be in a form comparable to

Page 22 01119111 the sample provided in Appendix 7 The Pre-Job Report will address the specific site conditions bonuses or premiums applicable to the Employees The Pre-Job Report may not be used to attempt to modify any Articles in Part 2 of this Agreement

213 Cooperative Initiatives

2131 Consistent with proposals made by the Owner HCML will cooperate with Unions in establishing and implementing

(a) appropriate training upgrading and mentoring programs for job stewards apprentices supervisors and for other Employees who wish to enhance or increase their skills abilities and qualifications

(b) programs allowing Employers operating modular assembly yards on the Project site to maximize the productivity of their Employees by allowing certain Employees to perform a limited amount of work outside of their Trades and

(c) programs to facilitate timely and effective resolution of disputes

214 HCML - Contracting

2141 No provision in this Agreement will operate as a limitation in any respect on HCML s ability to contract or outsource Work to others

215 Employer Organizations

2151 Employers who are members of an Employers Organization will pay dues and other assessments to their Employers Organization in accordance with the Employers practice at the time they commence Work or in accordance with Section 165 of the Code whichever is applicable

Page 23 01119 11

PART 3 ADDITIONAL TERMS AND CONDITIONS APPLYING TO CLAC EMPLOYEES AND CLAC EMPLOYERS

31 Introduction and Purpose

311 The intent and purpose of this Part is to

(a) set out certain tenus and conditions which will apply to CLAC Employees and CLAC Employers while working on the Project

(b) mutually recognize the respective rights responsibilities and functions of CLAC and CLAC Employers

(c) provide and maintain working conditions hours of work wage rates travel allowances referral provisions and benefits as set out in this Part

(d) establish an equitable system for the promotion transfer layoff and recall of CLAC Employees

(e) establish a just and prompt procedure for the disposition of grievances and

(f) through the full and fair administration of all the provisions contained within this Part to achieve a relationship among CLAC CLAC Employers and the CLAC Employees which will be conducive to their mutual well-being

312 CLAC and CLAC Employers will work towards the greatest possible degree of consultation and cooperation believing that the following concepts provide a fundamental framework for cooperative labourmanagement relations

(a) the industrial enterprise is an economically characterized work community of capital-investors and workers under the leadership of management

(b) the economic character springs from a continuous striving towards efficient use of scarce resources energy and environment and in the adequate development of the CLAC Employees research production and marketing and

(c) CLAC Employers CLAC and the CLAC Employees will not discourage cooperation but will stimulate it recognizing that while leadership without labour can do nothing labour without management cannot survive

32 Recognition

321 This Part covers all CLAC Employees and their CLAC Employers perfonuing Work in general construction pipeline construction road building and heavy construction and specialty construction as joumeypersons apprentices general foremen and foremen save and except professionals supervisors managerial office and clerical personnel and CLAC Employees and CLAC Employers when they are perfonuing Special Projects Work No classification of work or jobs may be removed from the bargaining Wlit except by mutual agreement in writing of the Parties

33 Managements Rights

331 Subject to the tenus and conditions of this Part a CLAC Employer has the right

Page 24 01119111 (a) to maintain order discipline and efficiency to make alter and enforce rules and

regulations policies and practices to be adhered to by its CLAC Employees

(b) to discipline and discharge CLAC Employees for just cause

(c) to select hire and direct the working force and CLAC Employees

(d) to transfer assign promote demote classify layoff recall and suspend CLAC Employees

(e) to select and retain CLAC Employees for positions excluded from the bargaining unit and

(f) to operate and manage its business in order to satisfy its commitments and responsibilities including the right to detennine the kind and location of business to be done by it the direction of the working forces the scheduling of work the nwnber of shifts the methods processes and means by which work is to be perfonned job content quality and quantity standards the right to use improved methods machinery and equipment the right to determine the number of CLAC Employees needed by it at any time and generally the right to plan direct and control its operations without interference

332 The sole and exclusive jurisdiction over operations building machinery equipment will be vested in CLAC Employers the Owner or HCML as the case may be

333 CLAC Employers may contract out Work where

(a) they do not possess the necessary facilities or equipment

(b) they do not have andor cannot acquire the required CLAC Employees or

(c) they cannot perform the work in a manner that is competitive in tenns of cost quality and within required time limits

When practical prior to subcontracting CLAC Employers will discuss with CLAC the portion or portions of the Project that the CLAC Employer wishes to sub-contract and the subcontractors to be hired to do such Work

34 Union Representation

341 Stewards

For the purpose of representation with CLAC Employers CLAC will function and be recognized as follows

(a) CLAC has the right to select or appoint stewards to assist the CLAC Employees in presenting any complaints or grievances they have to representatives of CLAC Employers and to enforce and administer this Agreement In general the number of stewards will be determined as follows

(i) when there are 50 or less CLAC Employees - 1 steward

(ii) over 50 CLAC Employees but less than 100 - 2 stewards

Page 25 0111911l (iii) for every 100 CLAC Employees beyond 100 - at least 1 additional

steward where more stewards may be added by mutual agreement and

(iv) CLAC Employers and CLAC will mutually agree when a chief steward is required

(b) (i) Stewards will receive the hourly premium as set out in Appendix 3 CLAC will advise CLAC Employers in writing the name(s) of the steward(s)

(ii) Stewards will be laid off or reduced in number according to Article 341 (a) Where possible CLAC Employers will notify CLAC prior to layoff if a steward is affected by a planned layoff

(c) CLAC acknowledges that stewards have regular duties to perform as CLAC Employees of CLAC Employers and that such CLAC Employees will not leave their regular duties for the purpose of conducting business in connection with the administration of the Agreement or the investigation or presentation of grievances without first obtaining the permission of their foreman or immediate supervisor Such permission will not be unreasonably withheld

CLAC Employers will pay stewards at their regular hourly rate for time spent attending such duties during their working hours

342 Representatives

(a) Duly appointed representatives of CLAC are representatives of the CLAC Employees in all matters pertaining to this Agreement particularly for the purpose of processing grievances negotiating amendments to and renewals of this Part and enforcing the CLAC Employees collective bargaining rights as well as any other rights under this Agreement Stewards will not act in this capacity CLAC will advise CLAC Employers in writing of the name(s) of its duly appointed representative(s)

(b) Representatives of CLAC will have access to visit job sites during normal working hours subject to the following

(i) CLAC representatives will identify themselves to the job supervisor upon arriving at the Project site and

(ii) CLAC representatives will not interfere with the progress of Work

(c) There will be no Union activity on the Project site during working hours except that which is necessary for the processing of grievances and the administration and enforcement of this Agreement

343 CLAC Employers Meeting With CLAC Employees

A CLAC Employer may meet periodically with its CLAC Employees for the purpose of discussing any matters of mutual interest or concern to CLAC Employers CLAC and the CLAC Employees A Union representative may attend such meetings

Page 26 011911 344 Negotiating Committee

CLAC has the right to appoint a negotiating committee made up of 1 member for every 100 CLAC Employees to a maximum of 6 on the committee They will be paid by CLAC Employers at their appropriate hourly rates for all time spent on negotiating this Part and wage and benefit reviews with CLAC Employers whenever this takes place during the regular working hours of the CLAC Employees concerned

35 Employment Policy and Union Membership

351 CLAC and CLAC Employers will cooperate in maintaining a desirable and competent labour force CLAC Employers will give preference to qualified Union members who are able to meet the requirements of the job CLAC Employers will submit the names social insurance numbers and classifications of all requested CLAC Employees to the CLAC office in Edmonton for approval by CLAC CLAC Employers will ensure that this is accomplished prior to commencement of employment If CLAC is not able to supply the number of qualified CLAC Employees required by a CLAC Employer the CLAC Employer will be able to hire from outside the CLAC membership provided however that such CLAC Employees must nevertheless obtain a Union dispatch slip and provide it to the CLAC Employer before commencing work CLAC agrees to promptly process dispatch slip requests which will not be unreasonably withheld

352 Neither CLAC Employers nor CLAC will compel CLAC Employees to join CLAC Subject to Article 351 CLAC Employers will not discriminate against any CLAC Employee because of Union membership or lack of it and will inform all new CLAC Employees of the contractual relationship between CLAC Employers and CLAC Before commencing work or as soon as reasonably possible after commencing work new CLAC Employees will be referred by the CLAC Employer to a steward or representative in order to describe the purpose of CLAC and CLAC representation policies to such new CLAC Employees

353 New CLAC Employees will serve a probationary period of 3 calendar months and thereafter will attain regular employment status subject to the availability of work Probationary CLAC Employees may be terminated at the discretion of CLAC Employers The Parties agree that the discharge or layoff of a probationary CLAC Employee will not be the subject of a grievance or arbitration

354 Probationary CLAC Employees are covered by this Part excepting those provisions which specifically exclude such CLAC Employees

355 A CLAC Employee who is laid off and rehired by the same CLAC Employer will not start a new probationary period but will be given credit for their previous employment provided the CLAC Employee is rehired within 6 months of the layoff

356 Employees laid off for a period longer than 6 months and rehired by the same CLAC Employer will serve a new probationary period

357 A CLAC Employee who quits or is terminated for just cause and is rehired will serve a new probation period

Page 27 01119111 36 Union Dues

361 CLAC Employers will deduct from each CLAC Employee s pay the amount equal to Union dues and where applicable an amount equal to Union dues arrears or Union initiation fees The total amount deducted will be remitted to the CLAC Treasurer each month by the 15th of the month following the deduction together with an itemized list of the CLAC Employees for whom the deductions are made and the amount deducted for each CLAC and the CLAC Employees agree that CLAC Employers will be saved harmless for all deductions and payments so made

362 CLAC has a conscientious objection policy for CLAC Employees who cannot support CLAC with the amount equal to dues for conscientious reasons as determined by CLAC internal guidelines on what constitutes a conscientious objection

363 CLAC will promptly notify CLAC Employers in writing over the signature of its designated officer the amount of the deduction to be made by CLAC Employers for regular Union dues and CLAC Employers will have the right to continue to rely on such written notification until it receives other written notification from CLAC

364 CLAC Employers will provide CLAC with all necessary infonnation regarding insurance and benefit plans job classification changes and tenninations The name address date of hire and classification of new CLAC Employees will be provided to CLAC once monthly

37 Wages amp Rates of Pay

371 Wage schedules and other provisions applicable to various job classifications and work descriptions are as set forth in Appendices 3 and 6

372 Additional classifications may only be established by mutual agreement between CLAC Employers and CLAC subject to HCML written approval and the rates for the same will be subject to negotiations between CLAC Employers and CLAC and subject to HCML approval Any addition under these terms and conditions will be put into writing and signed by a representative of CLAC Employers and CLAC

373 Show Up Time

(a) A CLAC Employee who comes to work without having been notified that there is no work available and who is sent home or back to camp because of lack of work will receive a minimum of 2 hours pay at their applicable hourly rate of pay The CLAC Employee will also receive their full accommodation allowance if and when applicable

(b) A CLAC Employee is not entitled to show up time if the CLAC Employee is provided at least 2 hours notice prior to the commencement of the normal start time that no work is available or in the case of a camp resident proper notification is posting the notice on the kitchen bulletin board at the pre-shift meal

374 Starting Work

A CLAC Employee who starts work and is prevented from completing their normal work day will receive a minimum of 4 hours pay at their applicable hourly rate of pay The

Page 28 01119111 CLAC Employee will also receive their full accommodation allowance if and when applicable

375 When there is a temporary shortage of work within a given work day in a specific classification then a CLAC Employer may employ the affected CLAC Employees in another classification at the rate of pay of their usual specified classification provided the CLAC Employee is qualified to do the required work

376 If the shortage of work is for a period longer than the day outlined in Article 375 above the CLAC Employee may be given the option to work in another classification for which they are qualified instead of being laid off The CLAC Employee will be paid the rate for the new classification This will be recorded in writing and signed by the CLAC Employer the CLAC Employee and the job steward

377 All references to base wage rate will be deemed to include premIUms for general foremen foremen lead hands and stewards

38 Hours of Work amp Overtime

381 This Article must be read in conjunction with Article 26

382 Notwithstanding the normal work week generally consists of 40 straight time hours per week the Shift Cycles in Article 263 will apply Employees will be paid overtime at the rate of 15 times the CLAC Employees base wage rate for all overtime hours Day 1 of a Shift Cycle may vary

383 Shift Cycle 1 - 10 days of 10 hours followed by 4 days off

10 days on 4 days off - Any day start

Day 1 2 3 4 S 6 7 8 9 10 11 12 13 14

Reg 7 7 7 7 7 7 7 7 7 7 0 0 0 0

OT 3 3 3 3 3 3 3 3 3 3 0 0 0 0

Regular hours worked 70 hours Overtime hours worked 30 bours

384 Shift Cycle 2 - 14 days of 10 hours followed by 7 days off

14 d ays on and7days 0 ff - Any daystart

2 8Day 3 4 5 7 10 11 20 211 6 9 12 13 14 15 16 17 18 19

Reg 7 7 7 7 7 7 7 7 06 7 7 7 6 6 0 00 0 0 0

OT 4 3 3 3 3 3 3 3 3 3 3 3 4 4 0 0 0 0 00 0

Regular bours worked 9S hours Overtime hours worked 45 hours

Page 29 01119111

385 Shift Cycle 3 - 20 days of 10 hours followed by 8 days off 20 d ays on and 8 d a soff - Any d tay sart

2 3 4 5 7 10 14Day 1 6 8 9 12 1311

7 7 7 7 7 7Reg 6 6 6 6 7 76 6

4 4 4 44 4 3 3OT 3 3 3 3 3 3

Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reg 6 6 6 6 6 6 0 0 0 0 0 0 0 0

OT 4 4 4 4 4 4 0 0 0 0 0 0 0 0

Regular hours worked 128 hours Overtime hours worked 72 hours

386 CLAC Employers will attempt to distribute unscheduled overtime work as evenly as possible among CLAC Employees who normally perform the work and who indicate they wish to work overtime

387 Any amendments to hours of work and overtime will be noted in the Pre-Job Report (reference Appendix 7)

388 The provisions of this Article are for the purpose of computing overtime and will not be construed to be a guarantee of or a limitation on the hours of work to be done per day or per week other than as stipulated in Articles 373 and 374

389 Coffee Breaks and Meal Periods

(a) There will be 2 coffee breaks of 15 minutes duration on each shift 1 in the first half of the shift and 1 in the second half of the shift

(b) Employees will be given an unpaid meal period of 112 hour per shift and such period will not be considered as time worked

(c) Employees required to work beyond 10 hours in a day will be provided with an additional coffee break of 15 minutes

(d) If CLAC Employees are not scheduled but required to work beyond 12 hours in a day the CLAC Employer will provide a paid meal period of 12 hour and a meal for the CLAC Employees

3810 Provided a CLAC Employee notifies a CLAC Employer at the time of hire the Employer may agree to respect the employees wishes with regards to not working certain days of the week or certain hours of the day because of religious convictions

39 Lay-Offs

391 CLAC Employers will give the CLAC Employee and the job steward 4 hours notice of lay-off Four (4) hours pay may be given in lieu of notice

Page 30 01119111 392 CLAC Employers will not be required to give notice of lay-off when equipment failure

shortage of material or other reasons beyond the control of the employer cause a stoppage of operation

393 CLAC Employers will notify the CLAC office of the names ofCLAC Employees laid off within the pay period during which the lay-off occurred together with the CLAC Employees classification and latest available phone number

310 Vacation amp Vacation Pay

31 01 All CLAC Employees will receive an amount equal to 6 of their base wage rate for all hours worked as Vacation Pay

3102 Vacation Pay will be paid to CLAC Employees on each pay period

3103 CLAC Employers will consider vacations at the times requested considering business requirements

311 Ho1idays amp Ho1iday Pay

3111 All CLAC Employees will receive an amount equal to 4 of their base wage rate for all hours worked in lieu of the following holidays

New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Remembrance Day Christmas Day and Boxing Day or any further days proclaimed by the Federal or Provincial Governments

3112 Employees required to work on one of the above holidays will receive overtime pay for all hours worked in addition to the holiday pay outlined in Article 3111 If the Shift Cycle is such that the regular hours are less than 8 hours on that holiday the remaining balance to a total of 8 hours will be paid as overtime the next day worked If the holiday falls on the CLAC Employees scheduled day off in the Shift Cycle 8 regular hours in the next Shift Cycle will be paid at overtime rates provided the CLAC Employee works the scheduled hours in that Shift Cycle Employees who receive additional days off over and above their regular scheduled days off will not be entitled to overtime pay for the Statutory Holiday upon their return to work unless the number of extra days taken does not equal the number of Statutory Holidays that occurred on their regular scheduled days off

Example

o The Shift cycle worked is a 208

o Christmas Day Boxing Day and New Years Day fall on the employees scheduled 8 days of rest

bull If employee returns to work following the regular scheduled eight (8) days of rest then three (3) days of overtime are to be paid to the employee

bull If the employee returns to work following eleven (11) days of rest no overtime is to be paid

Page 31 01119111 bull If the employee returns to work following ten (l0) days ofrest one (l)

day overtime is to be paid

This understanding of General Holidays and how overtime is paid applies to all General Holidays throughout the year

3113 Holiday Pay will be paid to CLAC Employees each pay period

312 Union-Management Committee

(a) In order to build a cooperative relationship between CLAC Employers CLAC and the CLAC Employees union-management meetings will be scheduled for each job awarded on the Project The meetings will serve as a forum for discussion and consultation about policies and practices in effect and not necessarily covered by the Agreement The areas for discussion will include but not be limited to the following

(i) safety programs

(ii) matters that affect the working conditions of the CLAC Employees

(iii) training and promotion

(iv) hiring and staffing policies and

(v) discipline and discharge policies

(b) CLAC Employers and CLAC will each appoint representatives to a unionshymanagement Committee Meeting notes will record the business of each meeting and copies will be made available to all CLAC Employees

3122 A CLAC Employee attending a union-management meeting during his scheduled hours will be entitled to his applicable hourly rate of pay In the event that such meetings are held outside scheduled hours CLAC Employers agree to pay CLAC Employees at their base wage rates for each meeting attended

313 Health and Safety Committee

3131 The Health and Safety Committee is mandated to address matters concerning safe work conditions and practices and to maintain a cooperative effort for the safety of the workforce Minutes will record the business of each meeting and copies will be distributed as the committee determines

At its discretion the Health and Safety Committee will make inspections of all job sites

3132 CLAC Employers and CLAC will each appoint representatives to the Health and Safety Committee At least one steward will be appointed to the Health and Safety Committee

3133 (a) CLAC Employers will make practicable provisions for the safety and health of their CLAC Employees during the hours of their employment Such provisions will be made known to all CLAC Employees at the time of hire

(b) CLAC undertakes to give full support to these objectives by promoting safety consciousness and a personal sense of responsibility among its membership

Page 32 01119111 (c) It is the intent of the Parties to have working conditions that are safe and healthy

3134 A CLAC Employee who is injured on the job during working hours and is required to leave for treatment for such injury will receive the pay he otherwise would have received for the remainder of his shift

3] 35 A CLAC Employee who is injured on the job and who requires transportation from the work site to a local physician or hospital will receive such transportation provided for by the CLAC Employer Should a CLAC Employee require hospitalization for a period of more than 2 weeks and where the CLAC Employee qualifies for neither WCB Compensation nor Benefit Plan Coverage the CLAC Employer will provide transportation to an available facility (within Canada) near the CLAC Employees home at no cost to the CLAC Employee

3136 Following a serious accident or an incident which could have resulted in a serious accident the Health and Safety Committee will convene as soon as possible to review the CLAC Employers investigation and report to CLAC

313 7 Modified Work Programs

(a) If a CLAC Employee is injured on the job and requires medical attention the CLAC Employee may be entitled to modified work and will infonn the attending physician of the same

(b) The CLAC Employer will infonn the physician of the types of modified work which may be available to the CLAC Employee and will make the same available to the CLAC Employee with the physicians approval

(c) CLAC Employers will infonn the CLAC office of all CLAC Employees who are assigned to modified work

3]38 Safety Award

CLAC Employers will implement a Safety Award program The tenns conditions and implementation plan will be documented in the Pre-Job Report as agreed upon by the Parties (reference Appendix 7)

314 Health and Welfare Plan

3141 CLAC Employers will pay the amount as set out in Appendix 3 for all scheduled hours worked for each CLAC Employee to the Insurance Plan administered by the CLAC Health and Welfare Trust Fund

3142 (a) Employees are eligible to receive coverage on the first of the month following 350 hours worked It is the responsibility of the CLAC Employee to complete the enrolment fonn for the benefit plan which is a condition of coverage

(b) It is the responsibility of each CLAC Employee to be familiar with the specific details of coverage and eligibility requirements of all benefit plans and neither CLAC nor CLAC Employers have any responsibility for ensuring that all requirements for eligibility or conditions of coverage or entitlement of benefits are met by the CLAC Employee beyond the obligations specifically stipulated in this Part

Page 33 01119 11 315 Retirement Plans

3151 Retirement Savings Plan (RSP)

(a) The Employer agrees to contribute the RSP amount set out in Schedule A to the Union Sponsored Group RSP (RSP Plan) for each employee for all hours worked

(b) Employees are responsible for completing an Application for Membership provided by the RSP Plan in order to register the RSP contributions remitted by the Employer

(c) The Employer agrees to deduct by way of payroll deduction and remit voluntary employee RSP contributions which are above and beyond those contributions outlined in Schedule A

(d) In the event that a remittance has not been received by the Union by the date set out in Article 3242 the Union or the Trust Funds may impose a penalty of one percent (I ) per month on the amount owing

(e) Withdrawals and payouts from the RSP Plan will be subject to the applicable laws and terms of that plan

(f) Employees will receive statements from the financial institution which administers the RSP Plan in accordance with the rules of that plan These statements will be mailed to the employees last address on record with the Union

3152 Pension

(a) The Employer agrees to contribute the pension amount set out in Schedule A to the CLAC Pension Plan (Pension Plan) governed by the CLAC Pension Plan Board of Trustees for each employee for all hours worked

(b) The Pension Plan is a defined contribution registered pension plan which is registered with the Canada Revenue Agency and the Financial Services Commission of Ontario under 0398594

(c) The Employer agrees to deduct by way of payroll deduction voluntary employee pension contributions which are above and beyond those contributions specified in Schedule A A request for such deductions shall be submitted to the Employer on a form provided by the Pension Plan and a copy of the completed form shall be sent to the Union along with the first remittance of such voluntary contributions

(d) Employer and employee voluntary contributions will be recorded separately on the remittance

(e) Where legislation prohibits an Employer from contributing because of an employees age an amount equivalent to the contributions outlined in Schedule A will be paid to that employee on each paycheque This payment in-lieu of pension contributions will not be less than the amount that employee would have received if heshe were still contributing to the Pension Plan

Page 34 01127111 (f) In the event that a remittance has not been received by the Union by the date set

out in Article 3242 the Employer is responsible to compensate the Pension Plan for any investment returns lost by the employees as a result of the late remittance This compensation amount shall be calculated on all applicable contributions which are part of the remittance

(g) The Employer and the Union will cooperate in providing the information required to administer the Pension Plan on the employees behalf The Pension Plan shall be responsible for informing the employees about the Pension Plan which includes providing updated account statements of all contributions received investment returns allocated and the current account balance

3153 An account will be opened in the CLAC Employees name as soon as possible following the receipt of 1 months contributions and the CLAC Employees current address The contributions will be deposited in the same manner subject only to the rules established by the administrator of the plan All monies deposited in the CLAC Employees account will remain the property of the CLAC Employee subject only to the rules established by the administrator

316 Education and Training Funds

3161 CLAC Employers agree to contribute an amount for all hours worked by all CLAC Employees as defined in Appendix 3 to the CLAC Education Fund

3l62 CLAC Alberta Training Trust Fund

The Employer agrees to contribute an amount as set out in Appendix 3 per hour to the CLAC Alberta Training Trust Fund for all hours worked by all employees The use of these funds will be governed by the policies of the Training Trust Fund and its trustees

317 Tools

3171 All CLAC Employees will supply their own tools common to their trade Specialty tools will be provided by CLAC Employers

3l72 CLAC Employees will be held responsible for all tools issued to them by CLAC Employers CLAC Employers will supply adequate security for all tool storage on the site

3173 Tool lists if necessary will be established by mutual agreement between CLAC Employers and CLAC Such tool lists will form part of this Part

318 Protective Equipment

3181 All CLAC Employees will wear CSA approved safety hats to be made available by CLAC Employers unless an allowance in lieu of a premium is otherwise agreed between the Employer and CLAC

3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when

Page 35 01119111 3182 All CLAC Employees will wear CSA approved safety shoes where required furnished by

the CLAC Employee

3183 CLAC Employers will furnish CLAC Employees with safety equipment (including gloves safety glasses and fire retardant coveralls if required) and rain gear if and when required Such equipment will remain the property of CLAC Employers Any worn out safety equipment will be replaced upon presentation of the worn equipment The CLAC Employees will be held responsible for loss or improper maintenance of employer furnished items CLAC Employers will provide for the cleaning of employer supplied fire retardant coveralls

3184 Prescription Safety Eyewear

CLAC Employers will reimburse any CLAC Employee 50 of the cost of prescription safety eyewear up to $200 according to the following criteria

The CLAC Employee must have worked 1200 hours with a CLAC Employer for the first reimbursement For any subsequent reimbursement the CLAC Employee must have worked an additional 4000 hours from the last reimbursement

319 Leaves of Absence and Bereavement Pay

3191 CLAC Employers may grant leaves of absence without pay for a time mutually agreed upon between the CLAC Employer and the CLAC Employee for the following reasons

(a) marriage of the CLAC Employee

(b) sickness of the CLAC Employee or CLAC Employees immediate family

(c) Union activity other than the establishment of this Part or

(d) death of a family member not outlined in Article 3192

(e) job related training

(f) birth or adoption of the employees own child

(g) other personal reason as approved by the Employer

3192 A CLAC Employee will be granted a 3 day leave of absence with pay at their applicable hourly wage rate to make arrangements for and to attend the funeral of the CLAC Employees spouse common law spouse child parent parent-in-law sibling sibling-inshylaw grandparent and grandchild Further time without pay may be granted by mutual agreement between a CLAC Employer and a CLAC Employee To receive such pay the CLAC Employee must return to work unless notified during the leave of a layoff

3193 Following a leave of absence CLAC Employees who fail to report back for work as scheduled without giving a justifiable reason will be deemed to have quit

320 Grievance Procedure

3201 Definitions

In this Article and Article 321 the following terms will have the following meanings

Page 36 0119111 (a) Employee Grievance means a complaint or claim by a CLAC Employee

concerning improper discipline or discharge or a dispute with reference to the interpretation application administration or alleged violation of this Agreement

(b) Grievor means a party who files a grievance under this Article and in the case of an Employee Grievance or Group Grievance the CLAC Employee or CLAC Employees on whose behalf the grievance is filed

(c) Group Grievance is defined as a single grievance signed by a steward or a Union representative on behalf of a group of CLAC Employees who have the same complaint The Grievors will be listed on the grievance form

(d) The lower case terms party or parties will refer to the parties principally involved in a grievance including CLAC a CLAC Employer or CLAC Employers and in the case of an Employee Grievance or Group Grievance the employee or employees on whose behalf the grievance has been filed but does not include HCML unless it is the CLAC Employer principally involved in the gnevance

(e) Policy Grievance is defined as one which involves a question relating to the interpretation application or administration of this Agreement except for matters to be decided under Article 21 A Policy Grievance will be signed by a steward or a Union representative or in the case of an EmployerS Policy Grievance by the CLAC Employer or its representative

(f) All references to days in this Article and Article 321 mean calendar days unless otherwise indicated A calendar day is defined as any day from Monday through Sunday

3202 Application ofthis Article

Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in this Article and Article 321 will apply to all disputes and differences relating to CLAC Employees and CLAC Employers The grievance and arbitration procedures in this Part will apply in respect to disputes or differences relating to the Recitals Parts 1 2 3 and 7 HCML will be provided with immediate notice of all written grievances that have been filed HCML will have the ability to intervene as a party in any such grievances No relief may be granted against HCML in any proceedings instituted under this Article except where the grievance involves HCML as an Employer

3203 The Parties recognize the cooperative nature in which issues and disputes have been historically resolved between CLAC and CLAC Employers This process has included constructive discussions and consultations prior to formalizing a grievance However if such discussions and consultations are not successful the Parties wish to resolve grievances in an equitable and timely fashion

3204 The Parties recognize the stewards and CLAC representatives specified in Article 34 as the agents through which CLAC Employees will process their grievances

3205 Timely Processing of Grievances

(a) No Employee Grievance or Group Grievance may be filed or forwarded to arbitration and will be deemed to be waived and abandoned unless within 8 days

Page 37 0111911 of the event action or condition giving rise to the grievance the affected CLAC Employee or CLAC Employees have discussed the matter with histheir Superintendent(s) and with a steward and these discussions have been documented If the matter is not promptly settled to the CLAC Employees satisfaction an Employee Grievance or Group Grievance may be processed as set out below

(b) No grievance will be filed or processed and it will be deemed to be waived and abandoned if it is not served on the opposing party within 22 days of the event action or condition giving rise to the grievance (the limitation period) In the case of an Employee Grievance or Group Grievance the limitation period is inclusive of the 8 days referred to in Article 3205(a) If the event action or condition giving rise to the grievance is of a continuing or recurring nature this limitation period will not begin to run until the Grievor has knowledge of the occurrence or issue giving rise to the grievance

(c) A party may no later than 48 hours prior to the expiry of the limitation period request that the limitation period be suspended for a specific period and the limitation period will be suspended for that period if the opposing party provides its written agreement to the suspension prior to the limitation period expiring The party agreeing to the suspension will immediately provide a copy of its suspension agreement to HCML Any party to the dispute may thereafter lift the suspension in which case the Grievor will have 8 days to serve the grievance on the opposing party failing which the grievance will not be processed and will be deemed to be waived and abandoned

(d) If the CLAC Employer does consider or process a grievance which has been presented late it will not be estopped or precluded at any stage from taking the position that the grievance is deemed waived and abandoned and is not arbitrable

3206 Grievances filed within the time limits specified in Articles 3205 will be processed according to the steps which follow unless certain of the steps are waived by the parties

Grievances will be reduced to writing and served on the opposing party within the time limits specified in Articles 3205 The grievance will specify the facts giving rise to the grievance the Article or Articles of the Agreement claimed to be violated and the relief requested and will be signed by the CLAC Employee or CLAC Employees involved Service will be effected by delivery to the designated CLAC Employer representative by a steward or a Union representative No later than 5 days after being served with the grievance the CLAC Employer will notify CLAC in writing of its position in respect of the grievance

If the grievance is not settled in Step 1 a Union representative will within 5 days of the decision lmder Step 1 or within 5 days of the day this decision should have been made submit a written grievance to the designated Employer representative A meeting will be held by the steward or Union representative together with the Grievor involved and designated CLAC Employer representatives This meeting will be held within 5 days of the presentation of the written grievance to the designated Employer representative The

Page 38 011911 CLAC Employer will notify the steward or Union representative of its decision in writing within 5 days of such meeting

In the event that the grievance is not settled at Step 2 the party having the grievance may serve the other party with written notice of desire to arbitrate within 5 days of the delivery of the decision or within 5 days of the date on which the decision should have been made in Step 2

321 Grievance Arbitration

3211 Either of the parties to a grievance filed within the time limits specified in Article 3205 may notify the other party of its desire to submit a grievance to arbitration in a manner as set out below

3212 The Parties will maintain a list of at least 4 mutually agreed upon arbitrators who will be used as provided for in the Code as single arbitrators The arbitrator will be selected as available on a rotational basis

3213 The arbitrator will be encouraged to commence a hearing within 10 days of the appointment and to render a decision within 15 days from the date of the conclusion of the hearing

3214 The authority of the arbitrator will be as set out in Section 143 of the Code The arbitrator will not be vested with the power to change this Agreement or to alter modify or amend any of its provisions

3215 The decision ofthe arbitrator will be final and binding on the parties

321 6 Should the parties disagree as to the meaning of the arbitrators decision then either party may apply to the arbitrator to clarify the decision and the arbitrator will make every effort to respond within 5 days

321 7 Each party will bear one-half the cost of the arbitrator

322 Reviews and Interest Arbitration

322 ] This Part and Appendix 3 will be subject to review by the Partiescommencing 90 days prior to March 1 2012 or at a mutually agreed upon time Failure by the Parties to reach agreement 60 days prior to these dates will entitle either Party to notify the other of its intention to proceed to interest arbitration where all outstanding issues will be decided

3222 The Party initiating the interest arbitration will do so by forwarding a letter to the other specifying the name of its nominee to an interest arbitration board The Party receiving the notice will within] 0 days of receipt of the notice notify the other of the name of its nominee to the interest arbitration board

3223 The 2 nominees will attempt to agree upon a third party to be chair of the interest arbitration board

3224 Should the Party receiving the notice refuse or fail to name a nominee within 10 days of receipt of same or should the 2 nominees fail to select a chair within 20 days of the

Page 39 01119 11 initial letter referring the matter to arbitration either party may apply to the Director pursuant to Section 137 of the Code to appoint the nominee or the chair as the case may be

3225 The interest arbitration board will be encouraged to commence a hearing within 30 days of the appointment of the chair and to render a decision within 10 days of the conclusion of the hearing

3226 The authority of the interest arbitration board will be as set out in Section 143 of the Code The interest arbitration board will not have authority to change any provisions in this Part that has not been referred as a matter in dispute

3227 The decision of a majority of the members of the interest arbitration board will be the decision of the board and if there is no majority the decision of the chair will be the decision of the interest arbitration board

3228 Should the Parties disagree as to the meaning of the interest arbitration board s decision either Party may apply to the interest arbitration board for clarification of the decision and the interest arbitration board will make every effort to respond within 5 days

3229 Each Party will be responsible for the fees and expenses of its nominee and its witnesses and the Parties will share equally the fees and expenses of the chair of the interest arbitration board

323 Discharge Suspension and Warning

(a) A CLAC Employee may be suspended or discharged for proper cause by a CLAC Employer Proper cause may include

(i) the refusal by a CLAC Employee to abide by Safety Regulations

(ii) the use of illegal narcotics or alcohol or reporting for Work while under the influence of such substances

(iii) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers clients or HCML or

(iv) the refusal by the CLAC Employee to abide by the requirements of a CLAC Employers rules regulations policies and practices

3232 In the case of a suspension or discharge CLAC may meet with the CLAC Employer within 10 days to attempt to resolve the matter If the matter is not resolved at this meeting it may be referred directly to arbitration by-passing the grievance procedure

3233 When the conduct or performance of a CLAC Employee calls for a warning by the CLAC Employer such a warning will be provided in writing by the foremansupervisor The foremansupervisor will send a copy of such warning to the CLAC steward and the CLAC office within 24 hours

324 Dues and Trust Fund Payments

Page 40 01119111 3241 The parties acknowledge that delinquent payments to the Union for Union dues or

for any of the Employer contributions to the Funds established in Articles 314 315 and 316 will pose a serious threat to the plan participants Therefore the Trustees of the Funds are empowered to take any action in law necessary to collect all Funds owing and to impose remedies and damages stipulated by the Trust Agreements All costs of such collection will be borne by the Employer

3242 Contributions will be made to the Union Provincial Remittance Processing Centre pursuant to Article 36 314 315 and 316 each month by the twentieth (20th) of the month following the month of contributions together with an itemized list of the employees for whom the contributions are made and the amount remitted for each

3243 In the event that the Employer fails to make the proper remittance the Union will notify the Employer of this failure The Employer will then have two (2) working days to correct this error

3244 Further to Article 3241 if the Employer continues to be delinquent in its remittance to the Union as outlined in Articles 36 314 315 and 316 the Union or the Trust Funds may impose a penalty of one percent (1 ) per month on the amount owing

3245 If the Employer satisfies all its obligations under Article 36 314 315 and 316 the Union agrees the Employer will be saved harmless for any claims relating to the remittances of Union dues the Health and Welfare plan and the RSP plan excluding any costs the Employer incurs defending such claims

3246 The Employer will and will be deemed to keep all Union dues deducted and all contri butions to the Funds as set out in Article 36 314 315 and 316 separate and apart from its own monies The Employer will and will be deemed to hold the sum in trust on behalf of the employees until the Employer has paid such monies to the applicable Trust Fund or Union Remittance Processing Centre In the event of the bankruptcy (or any similar event) of the Employer an amount equal to the amount that is owed to the applicable Trust Fund or Union office for Union dues and contributions that the employees are entitled to will be deemed to be separate from and form no part of the estate that is in bankruptcy (or any similar event) whether or not that amount has in fact been kept separate and apart from the Employers own money

325 Amendments

3251 The provisions set out in this Part may be amended by mutual agreement between the Parties

3252 Pre-Job Conferences amp Reports

(a) CLAC Employers will notify CLAC that a project has been awarded to it following the award Prior to the start of each CLAC Employers Work on the Project site a pre-job conference will be held to determine all site-specific issues as outlined in this Part This pre-job conference must be conducted in person and HCML shall be invited to the pre-job conference HCML must approve any agreement reached by CLAC and the CLAC Employer These pre-job

Page 41 011911 conferences may not be used to attempt to modify any Articles in Part 2 of this Agreement A suggested form of the Pre-Job Report used to document a pre-job conference under this Article is attached as Appendix 7

(b) A copy of the Pre-Job Report will be provided to the CLAC Employer CLAC HCML and the job steward(s)

Page 42 01119111

PART 4 ADDITIONAL TERMS AND CONDITIONS APPLYING TO BUILDING TRADE EMPLOYEES AND THEIR EMPLOYERS

41 Application of Parts of Building Trade Collective Agreements

411 Building Trade Collective Agreements for various Trades working in the general construction sector of the construction industry are referenced in Appendix 4 Subject to Article 412 below

(a) The terms and conditions of these agreements will apply to Building Trade Employees Working in the Trades specified in the agreements and to their Employers

(b) These terms and conditions will apply to Building Trade Employees and their Employers until replacement Building Trade Collective Agreements come into effect at which time the terms and conditions of those replacement agreements will apply to Building Trade Employees and their Employers and this process will continue to apply in respect of all future replacement Building Trade Collective Agreements until this Agreement expires

(c) No terms or conditions of any collective agreement between a Building Trade Union and an Employer or an Employers Organization and which is entered into outside of the registration provisions of the Code will form a part of this Agreement unless HCML declares otherwise and

(d) No terms of conditions in any Building Trade Collective Agreements which are stated to specifically relate only to the Project or any part of it or which differentiate between the Project and any other oil sands project in the Wood Buffalo region will form part of this Agreement unless HCML declares otherwise

412 In Appendix 4 certain terms and conditions of Building Trade Collective Agreements are stated to be excluded from this Agreement Those excluded terms and conditions are not part of this Agreement and will not apply to Employees working on the Project Any other terms and conditions in the Building Trade Collective Agreements which are decided pursuant to Article 21 to conflict with the terms and conditions in Part 2 of this Agreement will not be part of this Agreement to the extent of any such conflict and will not apply to Employees or Employers working on the Project Terms and conditions of any Building Trade Collective Agreement described in Article 411 (b) which relate to the same or substantially the same subject matter as those terms and conditions excluded from this Agreement pursuant to this Article 412 will not be part of this Agreement unless HCML declares otherwise

413 Subject to the matters dealt with under Article 21 above the grievance and arbitration procedures in the specific Trade agreements referenced in Appendix 4 will apply to all disputes or differences relating to Employees in those specific Trades working under this Part and their Employers The grievance and arbitration procedures in Appendix 4 will apply in respect to disputes or differences relating to the Recitals Parts 1 2 4 and 7 and Appendix 4 HCML will be provided with immediate notice of all written grievances

Page 43 01119111 that have been filed HCML will have the ability to intervene as a party in any such grievances No relief will be granted against the Owner or HCML in any proceeding instituted under this Part

414 Unite Here Local Union 47 (Local 47) is not within the registration bargaining system and therefore the Parties have not incorporated the terms of a specific collective agreement relative to Local 47 into this Agreement Should Local 47 have Bargaining Rights in respect of any Employees working on the Project HCML the affected Employer and Local 47 will attempt to incorporate the terms of the existing agreement between Local 47 and the Employer into this Agreement (while excluding those terms which conflict with provisions of this Agreement) Should these parties be unable to reach agreement HCML will resolve any disagreements and their decision is final and binding

42 Camp

421 This Article should be read in conjunction with Article 29 which is incorporated into this Article

422 In this Article Building Trades Camp Agreement means an agreement entitled Camp Rules and Regulations approved by Alberta and NWT (District of Mackenzie) Building and Construction Trades Council and Construction Labour Relations - an Alberta Association with a term of 1999 through 2008 and any successor to this Agreement provided that the successor contains provisions which continue the terms and conditions in the current agreement in respect of camps in operation at the time the successor agreement becomes effective

423 Any camp accommodation on the Project site occupied by Building Trade Employees will be operated in accordance with the standards of the Building Trades Camp Agreement

424 The standards as set out in the Camp Grievance Procedure and Camp Conduct and Procedural Rules in the Camp Agreement will apply to any camp accommodation on the Project site camp where all of the resident Employees are Building Trade Employees

43 Work Scheduling and Overtime

431 This Article should be read in conjunction with Article 26 which is incorporated into this Article

432 Overtime hours scheduled as part of a Shift Cycle will be paid in accordance with Article 26 All other overtime hours for Building Trade Employees working under this Part will be paid pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4 Any shift premiums will be paid according to Appendix 4

433 Subject to HCMLs approval Building Trade Employees may be required to work on all General Holidays that fall on a day which would normally be a work day in their Shift Cycle Employees who work on the statutory holiday will be paid overtime for all hours worked on that holiday pursuant to the provisions of the relevant Building Trade Collective Agreement in Appendix 4

Page 44 01119111 44 Travel and Transportation

441 Daily Travel Allowance for Local Residents

An Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees that are local residents a daily travel allowance that is

(a) in accordance with Article 288 or

(b) in an amount equal to 085 hours of the Building Trade Employees base hourly rate of pay for those Building Trade Employees whose Principal Residence is more than 45 km from the Project

provided however that the Employer shall make such an election in respect of all of their Building Trade Employees and not in respect of each individual Building Trade Employee

442 Shift Cycle Travel Allowance

Where a Building Trade Employee is working Shift Cycles in accordance with Article 263 and is not a local resident that Building Trade Employee shall be deemed to have elected to utilize the transportation provided by the Owner in accordance with the terms of the Agreement unless prior to commencing work on the Project during the employee sign-on at job site the Building Trade Employee elects on a one time basis in writing to their Employer (with a copy thereof provided by the Employer to HCML) to forego the use of such transportation When a Building Trade Employee makes such an election the Employer shall have the ability to elect on a one time basis to pay its Building Trade Employees a Shift Cycle travel allowance that is either

(a) in accordance with Articles 289 2810 2811 2 812 as same may be applicable to that Building Trade Employee or

(b) comprised of an initial and return transportation allowance in the amount of $180 each way and a rotational turnaround allowance paid every five (5) weeks in the amount of $140 or such different amounts as may be set out in the applicable Building Trade Collective Agreement

A Building Trade Employee who has elected alternative (b) in this Article 442 may make a re-election in writing to the Employer (with a copy thereof provided by Employer to HCML) in the marmer described above when only Owner has made a material change in the nature or type of transportation it is providing from a location that is closer to the Building Trade Employee s Principal Residence failing which the Building Trade Employee shall be deemed to have elected the alternative in 442 (b) For clarity any Building Trade Employees who have elected and are eligible for flights in accordance with Article 28 are not eligible for the alternative in Article 442 (b)

443 Shift Cycle Travel Allowance for Terminated Employees or Employees who Quit

An employee who has elected not to use provided transportation in the marmer described in the above provision and who has earned a terminal travel allowance payment under alternative 44 2 (b) shall be entitled to that payment notwithstanding that the Employee has been terminated for cause or has quit

Page 45 01119111 45 Overtime Meals

Where Building Trade Employees are required to work scheduled shifts in excess of 10 hours in each single shift they shall be provided with a suitable mealor at the Employers option payment in accordance with the relevant Building Trade Collective Agreements and every 4 hours thereafter until the shift is ended Where the Employer is paying subsistence this clause shall also apply

As a minimum requirement when Employees are not scheduled but required to work beyond 12 hours in a day the Employer will provide an additional meal period of liz hour and a meal

46 Subsistence for Foremen and General Foremen

At the Employers discretion and with HCML approval Foremen and General Foremen who are not required to reside in the Owners camp accommodation and who reside 85 kilometers or greater from the Project except residents ofFt McMurray Anzac and Saprae Creek may receive a Living Out Allowance (LOA) in accordance with 292

47 General

Certain tenns and conditions of the Building Trade Agreements which are excluded from this Agreement pursuant to Appendix 4 may relate to subject matter needed to give full effect to tenns and conditions which are included In that case HCML will discuss with the affected Building Trade Union(s) the possibility of using the excluded provision to give full effect to the included tenn or condition failing which the applicable provisions of Part 3 and Appendix 3 dealing with the same subject matter will apply

Page 46 01119111

PART 5 ADDITIONAL TERMS AND CONDITIONS APPLYING TO NONshyUNIONIZED EMPLOYEES OTHER UNIONIZED EMPLOYEES AND THEIR EMPLOYERS

51 Applicable Collective Agreement Terms and Conditions

511 Non-Unionized and Other Unionized Employees and their Employers who are not covered under Part 6 of this Agreement will be bound by the following tenus and conditions of Part 3 and Appendix 3

(a) Article 33 - Managements Rights except Article 333

(b) Article 34 - Union Representation but only to the extent that CLAC Representatives will represent Employees in all matters relating to the terms and conditions of the Recitals Part 1 2 5 and 7 of this Agreement and specifically also in respect of the handling and processing of grievances as referred to in the grievance and arbitration provisions of Part 3

(c) Article 36 - Union Dues but only to the extent that Employees or Employers on behalf of Employees are obligated to remit fees equivalent to union dues in accordance with Article 36 as an Agreement administration fee

(d) Article 37 - Wages amp Rates of Pay but only for Employees working on Industrial Work in the general construction sector and only to the extent that an Employees hourly base wage vacation pay and holiday pay achieve at a minimum the hourly base wage vacation pay and holiday pay stipulated in Appendix 3

(e) Article 314 - Health and Welfare Plan to the extent an Employer does not have such a plan and elects participation in the CLAC Health and Welfare Plan

(f) Article 315 - Retirement Savings Plan to the extent an Employer does not have a pension or savings plan and elects participation in the CLAC Retirement Savings Plan

(g) Article 320 - Grievance Procedure applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

(h) Article 321 - Arbitration applicable only to disputes relating to the terms and conditions in the Recitals and Parts 1 2 and 5 of this Agreement and not in respect to other tenus and conditions of employment or employment policies

512 All overtime paid to Non-Unionized Employees will be paid at the rate of 15 times their base wage rates

513 This Part 5 is not intended to restrict or limit any statutory or conunon law rights of NonshyUnionized Employees which do not conflict with the tenus and conditions in Article 511 the Recitals and Parts 1 2 and 7 of this Agreement

Page 47 01119111 514 Employers who participate in any health and welfare retirement savings or other benefit

plans including those provided by the Merit Contractors Association may continue to make contributions and remittances to those plans for their Employees under Part 5 of this Agreement

5 l5 Where an Employer performing Work on the Project has a Bargaining Relationship with a Union other than CLAC or a Building Trade Union HCML will decide whether Other Unionized Employees represented by that Union will in addition to being bound by the Recitals and Parts 1 2 and 7 of this Agreement be bound by either this Part 5 or by a separate Part to be added to this Agreement Alternatively HCML may enter into a separate Project Agreement with any Union other than CLAC in which case that Project Agreement will contain terms and conditions similar to those set out in the Recitals and Parts 1 2 and 7 of this Agreement but HCML would attempt to accommodate terms and conditions of such collective agreement between that Union and their affiliated Employers in such a Project Agreement provided those terms do not conflict with terms and conditions of this Agreement

Page 48 011911

PART 6 TERMS AND CONDITIONS APPLYING TO SPECIAL PROJECTS WORK

61 Terms and Conditions that apply to Special Projects Work

611 In Appendix 5 the Parties have identified those parts of the Project initially declared to be Special Projects Work HCML may declare other Work to be Special Projects Work in which case this Part will apply to it HCML may remove projects from the Special Projects Work category in which case this Part will not apply to that Work

61 2 HCML will review all projects under way at the time this Agreement becomes effective and will determine which of these projects will be declared Special Projects Work

613 The terms and conditions set out in the Recitals Part 1 Articles 2122210211 and 212 and Part 7 of this Agreement apply to Special Projects Work These terms and conditions apply to all employees and employers when they work on the Special Projects Work

614 HCML may declare that other Articles of this Agreement will apply to specific Special Projects Work in which case employers and employees performing such Work will be bound by those Articles once notice of the declaration has been given to those employers and to CLAC

615 All terms and conditions which would ordinarily apply to employers and employees including those contained in any collective agreements will apply when those employers and employees are performing Special Projects Work lIDless they conflict with those terms and conditions referenced in Articles 61 3 and 614

616 Unions and Employers may also enter into separate Special Projects Work agreements which further define the terms and conditions which will apply to specific Special Projects Work provided that such agreements will always have HCML the Owner or both as parties to the agreement