COLLECTIVE AGREEMENT

between

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CERT.ALE () <):J~j1~y CERT.DATE }:L_-jw..G-/9~

St. Lawrence Cement Inc. Operating as c:=:=::iif~~~~;i Dufferin Aggregates Milton, Ontario. ~I=D~E:.:.;NT~C:.:O.;;_DE:..D__.;:~:...!l';;~---i

RECEIVED •

and OTHER

Communications, Energy and PapeiWorkers Union of Canada

Local266

"Tandem Union Drivers"

SEP 0 9 2004

COLLECTIVE BARGAINING INFORMATION SERVICES

April 1, 2004- March 31, 2009

EMPLOYER

TABLE OF CONTENTS

ARTICLE 1 -RECOGNITION ................................................................................... 3

ARTICLE 2- UNION SECURITY .............................................................................. 3

ARTICLE 3- MANAGEMENT RIGHTS ...................................................................... 4

ARTICLE 4- LOADING PRIVLEDGES, SENIORITY & UNION STEWARDS ...................... 5

ARTICLE 5- GRIEVANCE PROCEDURE ................................................................... 7

ARTICLE 6- STRIKES AND LOCKOUTS ................................................................... 8

ARTICLE 7- LEAVE OF ABSENCE .......................................................................... 9

ARTICLE 8- RATES PER APPENDIX "B" .................................................................. 9

ARTICLE 9- TERMS OF AGREEMENT ..................................................................... 9

ARTICLE 10- RATES ANDF MONETARY CONDITIONS .............................................. 9

ARTICLE 11 -GENERAL ...................................................................................... 10

SCHEDULE "A"- TANDEM TRUCK CORE LiST ........................................................ 12

LETTER OF INTENT #1 ........................................................................................ 13

LETTER OF INTENT #2 ........................................................................................ 13

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THIS AGREEMENT entered into on March 30, 2004

BETWEEN:

ST. LAWRENCE CEMENT INC. OPERATING AS DUFFERIN AGGREGATES AT THEIR QUARRY OPERATION, MILTON, ONTARIO

(Hereinafter referred to as the "Company")

- and-

COMMUNICATIONS, ENERGY AND PAPERWORKERS UNION OF CANADA LOCAL 266

(Hereinafter referred to as the "Union")

ARTICLE 1 - RECOGNITION

1.01 The Company recognized the Union as the sole and exclusive bargaining agent for all employees in the bargaining unit in accordance with the certificate issued by the Ontario Labour Relations Board.

ARTICLE 2- UNION SECURITY

2.01 All present employees in schedule "A" shall remain members of the Union (5).

2.02 The Employer shall deduct from the wages of the employees, the amount of the regular Union dues, initiation fee and assessments in accordance with the Union's constitution and By-laws. The employer shall deduct such monies from the first pay period of each month and forward the money to the Secretary Treasurer of the Local Union by the last day of each month. If an employee works five days in any month, dues shall be deducted. Initiation fees shall be deducted from the first pay period the employee was hired.

2.03 Membership in the Union shall be from the date of hire. The Local Union shall notify the Company in writing of the amount of initiation fees, assessments and dues. However, employees must be working for at least 180 days to be Union Members.

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2.04 A bargaining unit employee will loose his seniority if he has not worked for the Company in any 12 month period unless he has written permission from the Company. Period may be extended to 24 months due to illness.

Subject to the written approval of the Distribution Manager, members of the union under the age of 65 may be allowed to hire a substitute driver to operate his truck under the following circumstances only:

(a) The dependent contractor is unable to work for valid reasons for which substantiation is provided and acceptable to the company. Approval shall not be unreasonably denied.

(b) The maximum period of time is 12 months.

(c) The substitute driver will not acquire any seniority rights as defined in the collective agreement, or any other legislation, and should his performance be deemed unacceptable in the sole opinion of the Distribution Manager, his eligibility as a substitute driver shall be cancelled. No prior notice or warning is necessary.

(d) The owner of the truck maintains all liability with respect to any and all accidents or incidents occurring during the substitute driver's operation of his truck. It is understood that the dependent contractor assumes all responsibility for the substitute driver.

(e) The substitute driver provides all requisite information as per the Trucker Safety Policy and signs off in agreement with the policy.

The company and the union reserve the right to discontinue this practice with 90 days written notice, during the life of the collective agreement. Any substitute driver will be allowed to continue to the end of the period agreed upon, subject to 2.04 (b).

ARTICLE 3- MANAGEMENT RIGHTS

3.01 The Union agrees that it is the exclusive function of the Company:

(a) to conduct its business in all respects in accordance with its commitments and responsibilities, including the right to manage the jobs, relocate, extend, curtail or cease operations, to determine the equipment to be used and the schedules of shipment and

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production, to judge the qualifications of the drivers and to maintain order, discipline and efficiency;

(b) to hire, discharge, classify, transfer, promote, demote, lay-off, suspend or otherwise discipline employees, provided that a claim by a driver that he has been discharge, suspended or disciplined without just cause shall be subject to the provisions of the grievance procedure;

(c) to make, alter from time to time, and enforce reasonable rules of conduct and procedure to be observed by the drivers;

(d) to take any other action unless otherwise restricted by this agreement;

(e) Management shall exercise these rights in accordance with the provisions of this agreement and consistent with this agreement.

ARTICLE 4- LOADING PRIVELDGES, SENIORITY & UNION STEWARDS

4.01 It is understood by the parties, that the five (5) shall have priority loading privileges at all times. Such priority loading shall be strictly adhered to at all times, including Saturdays and Sundays.

4.02 The Company will establish a drivers' list based on seniority. The number of drivers on such list shall not exceed five (5), but if the Company proposes to increase such number, it may do so after discussion with the Union Representatives. Seniority shall mean total length of service with the Company.

4.03 It is understood that the five (5) truckers listed in Schedule "A" (which the Union will provide to the Company) attached hereto shall not be subject to lay-off during the life of the Agreement.

4.04 Drivers will' be called in rotation, the first call today will be the last call tomorrow. Failure to report for normal rotation call will result in forfeiture of position for that day. The responsibility for managing this clause rests with the Union.

4.05 The Company will not hire or make delivery with other tandems (tri­axle) trucks and drivers who are not on the core list, unless such core list drivers are unavailable or do not meet customer requirements (i.e. steel box). The core list will consist of five (5) drivers only.

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4.06 No driver will be absent for a period in excess of 30 days without written permission from the Distribution Manager. Such permission shall not be unreasonably withheld providing the Company's need for tandem.vehicles can be met during this period. Failure to comply with the above will result in the termination of the services of the driver.

4.07 Provided that there is insufficient work available at Dufferin, the drivers may request permission to accept work elsewhere on a daily basis without jeopardizing their status as dependent contractors under this Agreement.

4.08 If a driver is unable to unload for any reason, he shall immediately telephone the quarry for instructions. If redirected, the current payment practice will prevail. If instructed by the dispatcher to bring the load back to the quarry the driver must present the ticket to the dispatcher for signing. If this procedure is strictly followed, the driver will be paid the rate for the load both ways. Failure to follow the procedure outlined herein, on redirection or return to the quarry, will result in forfeiture of any payment. If the driver is detained for more than 1 hour, he will be paid waiting time at the current rate. If rerouted, the driver will be paid at the rate of $0.11 per tonne per kilometer.

4.09 It is understood and agreed that the Company is not responsible for dependent contractor's trucks while parked on Company premises. Dependent contractors covered by this agreement have the right to park and plug in their trucks on company property in the area provided. Only one truck may be parked on Company property per . union member. This area is to be kept clear of used parts, materials, tires, abandon cars/trucks, etc. at all times.

Maintenance and repairs to tandem trucks such as; oil changing, tire changing and tasks involving lifting of a truck (excluding daily top up of fluids and lubricants and the lifting of one wheel of a truck at a time), will no longer be permitted on the Milton property due to environmental and safety concerns. This policy will be strictly enforced, violations will be subject to disciplinary measures up to and including termination of employment.

4.10 It is agreed that only the Union Chairman or Stewards will discuss complaints with respect to dispatching problems with Distribution Manager, and these discussions will take place on off-peak hours.

4.11 The Company reserves the right to retire members of the Union who have reached the age of 65. In order to ease the transition,

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members of the union who turn 65 in any given year will be retired December 31st in the year in which they turn 65. Active members of the union, who at the time of signing this agreement have worked beyond the age of 65 unbeknownst to the company, will be retired December 31 5 t, 2009. One year work extensions, beyond the December 31st deadline, may be granted on an annual basis solely at the discretion of Management. Members of the union interested in applying for an extension must do so in writing to the Distribution Manager.

ARTICLE 5- GRIEVANCE PROCEDURE

5.01 A grievance is defined as either (1) an individual grievance affecting one person or (2) a group grievance affecting more than one person or (3) a policy grievance filed by the Union or Company. When a grievance is at any step of the grievance procedure, by written mutual consent, all similar grievances filed will be held in abeyance pending resolution or determination of the first grievance.

5.02 No driver, other than probationary employee shall be disciplined or discharged without just cause.

5.03 Should any difference arise between the Company and the Union as to the interpretation, application, administration or alleged violation of this Agreement, including any questions as to whether a matter is arbitrable or not, an earnest effort shall be made to settle such differences without undue delay in the following manner:

Step No.1 If a driver who has completed his probation alleges that any of his rights under this Agreement have been violated, the Union may within seven (7) days from the time when the alleged circumstances of the complaint arose or from the when he first became aware of or ought to have known of such circumstance, file a grievance with the Distribution Manager. Within five (5) working days of filling of such grievances, the Distribution Manager shall rneet with a Union Steward and the driver for the purpose of attempting to resolve it. The Distribution Manager shall inform the Union of his answer to the grievance within five (5) working days after such meeting.

Step No.2 If the Distribution Manager's answer is unsatisfactory to the Union, the Union National Representative or his designee shall meet with the Sales Manager of the Company or his designee and present a written resume of the grievance within a further five (5) working

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days. The Sales Manager of the Company shall give his answer to such grievance in writing within five (5) working days thereafter.

Step No.3 If within ten (1 0) working days following date of the response received at Step 2, the Union or the Company have not advised the other party in writing of their intent to pursue a grievance to arbitration, the grievance will be considered settled or abandoned. Once notice has been served by a party to pursue a grievance at arbitration, that party will have forty-five (45) calendar days from the day notice was provided to complete the process of filing for arbitration for the purpose of selecting an arbitrator or mediator (should the parties mutually agree to grievance mediation). If within forty-five (45) calendar days from the day it gave notice to pursue a grievance at arbitration a party has not completed the process of filing for arbitration for the purpose of selecting an arbitrator or mediator, the grievance will be considered settled or abandoned. Either party may pursue an application for expedited arbitration (OLRA s.49) as a means of resolving a grievance notwithstanding this article.

As an alternative to Arbitration, the parties may mutually agree to Grievance Mediation as a means of resolving a grievance. A mutual agreement to resolve a grievance at Grievance Mediation shall be---­in writing. Should the parties not mutually agree to Grievance- -­Mediation, the Union or the Company must file for Arbitration within the time limits as setout in this article otherwise the grievance will -_ -be considered settled or abandoned. An agreement of the parties to make use of the Grievance Mediation process shall not be construed as a practice for either party regardless of the frequency in which it is used.

5.04 A grievance alleging that an employee has been discharged without just cause of any difference arising directly between the Company and the Union as to the interpretation, administration or alleged violation ofthis Agreement, including any question as to whether it is arbitrable (herein called a "policy grievance") may be initiated by the Union at Step. No. 2 of the grievance procedure.

ARTICLE 6- STRIKES AND LOCKOUTS

6.01 Neither the Union nor any driver shall take part in or call or encourage any strike, sit-down, slow-down or any suspension of work against the Company or any of its customers, nor shall the Company engage in any lockout at its Milton Quarry.

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6.02 There shall be no discrimination by the Company or the Union of any driver against any other driver because of his race, creed, sex, colour, national origin or political opinions.

ARTICLE 7- LEAVE OF ABSENCE

7.01 The Company may grant a leave of absence to a driver for legitimate personal reasons, but reserves the right, by reason of the requirements of its business, to deny a request for such leave.

7.02 All employees elected or appointed as delegates of the Union to conventions or meetings of organizations with which it is affiliated shall be given reasonable leave of absence, without pay, to perform the duties of such office provided all possible notice, at least four (4) days is given to the Company. The number of employees to be on leave of absence under this clause shall not exceed two (2).

ARTICLE 8- RATES PER APPENDIX "B"

8.01 Contract Settlement, rates and monetary conditions shall be as set out on Appendix "B" which will be attached hereto and will form a part of this Agreement.

ARTICLE 9- TERMS OF AGREEMENT

9.01 This Agreement becomes effective April 1, 2004 and shall continue in force and effect until March 31, 2009.

9.02 Within ninety (90) days of the termination of this Agreement, either party may give notice to the other that it intends to bargain for a new Collective Agreement. If no such notice is given, this Agreement shall continue in effect from year to year until such notice is given.

ARTICE 10- RATES AND MONETARY CONDITIONS

10.01 $0.55 per tonne above the zone rate will be paid for individual house calls where cash or a credit card is the method of payment.

10.02 Waiting time, agreed to in writing by the customer involved or the Company's dispatcher, will be paid for at $55.00 per hour.

10.03 Adjustments to zone rates due to changes in fuel prices charged by the Company will be taken under review between the parties should the fuel price exceed $0.80 per litre. Should the parties be unable to agree to a new rate schedule the matter will be referred to

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arbitration. The parties agree that such a review shall be at the Unions request and not more than once per year.

10.04 Out-of-zone locations will be compensated at a rate of $0.11 per ton.ne per kilometer for the distance beyond the closest zone plus the rate of that zone.

10.05 During half load season or for any reduced loads, the driver will be paid based on the truck legal limit as established by M.T.O.

10.06 Haulage of gab ion stone will receive a premium rate of $1.10 per tonne over the regular zone rate.

ARTICLE 11 - GENERAL

11.01 Company will maintain dispatch sheets for the Union members to track distribution of loads. If necessary, monthly meetings will be held between the Union executive and the Company to discuss apparent irregularities.

11.02 Should the occasion arise wherein the Union and the Company have an interest in negotiating a specific job, then the parties will convene to work out the particulars. It is understood that such special arrangements will not effect the existing Agreement.

When a reduction of a zone rate is required to obtain a job, the Company may automatically reduce the zone rate by up to 10%. The Company will not unreasonably reduce such rates and will only do so when it is necessary to compete with a particular zone rate.

By mutual consent between the Tandem Union Driver and the Distribution Manager, further reductions may be approved to a maximum of 15% and the Company agrees that it will not utilize outside trucks in place of a Tandem Union Driver who may refuse such a reduction.

11.03 The Company will endeavor to promote the sale of its products by tandem or triaxle trucks whenever it is economically viable and safe for its customers.

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IN WITNESS WHEREOF each of the parties hereto has caused this Agreement to be signed by its duly authorized representatives.

DATED at /VIIL..1&N this :27/J( day of---4'-/t~t.L=J.&:u.u~<,.L-? __ ,2004

For the Union

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SCHEDULE "A"· Tandem Truck Core List

1. # 230 G. KELL

2. # 470 B. UZELAC

3. #324 N. McKENZIE

4. #429 M. STANISIC

5. #185 D. CORREIA

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SCHEDULE "8"- Letters of Intent and Zone Rates

Letter of Intent #1

The company will endeavour to improve communications with the Union, specifically through the Distribution Manager. When the company uses other tandem trucks and drivers not on the core list, the core list drivers shall have priority. . ·

Letter of Intent #2

During 2004 negotiations the parties agreed to a Five (5) year Collective Agreement which expires March 31, 2009. The current rates in Schedule A of the Collective Agreement will remain in effect until March 31, 2007. The parties have agreed, subsequent to March 31, 2007 to revisit the zone rates in Schedule A. Should the parties be unable to agree to a new rate schedule, the matter will be

· referred to arbitration.

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Appendix B

Milton 2004 P Ti k H I t ·~ rue er aura es

Zone Triaxle Zone Triaxle

Zone Triaxle

Zone Triaxle

Zone Triaxle Zone

Triaxle Zone

Triaxle Zone

Triaxle Rate Rate Rate Rate Rate Rate Rate Rate

1 $5.05 44 $4.57 87 $7.01 130 $8.07 173 $8.29 216 $8.40 390 $5.30 433 $5.92

2 $5.51 45 $3.47 88 $7.55 131 $8.29 174 $8.58 217 $8.85 391 $4.82 434 $5.71

3 $4.72 46 $4.20 89 $7.74 132 $8.61 175 $8.56 218 $8.91 392 $4.54 435 $5.51

4 $5.94 47 $5.06 90 $8.00 133 $8.73 176 $5.92 219 $9.24 393 $4.61 436 $5.99

5 $5.97 48 $5.48 91 $8.17 134 $8.96 177 $5.48 220 $9.55 394 $4.96 441 $6.20

6 $6.15 49 $5.57 92 $8.49 135 $5.32 178 $5.12 221 $9.99 395 $5.85 472 $5.81

7 $6.35 50 $5.78 93 $9.32 136 $5.32 179 $5.36 222 $10.15 396 $5.23 473 $5.66

8 $6.62 51 $6.07 94 $9.49 137 $4.66 180 $5.68 223 $10.26 397 $5.16 474 $5.56

9 $7.01 52 $6.62 95 $4.42 138 $4.86 181 $6.14 224 $10.58 398 $4.82 475 $5.66

10 $7.66 53 $6.73 96 $4.42 139 $5.06 182 $6.43 225 $8.19 399 $4.41 483 $5.81 ----~- ~·

11 $7.77 54 $6.83 97 $3.37 140 $5.19 183 $7.15 357 $7.57 400 $6.89 484 $5.66

12 $7.87 55 $7.14 98 $4.45 141 $5.40 184 $7.47 358 $7.16 401 $6.54 485 $5.39

13 $7.95 56 $7.36 99 $4.57 142 $5.59 185 $7.82 359 $6.89 402 $6.40 486 $5.56

14 $8.22 57 $7.48 100 $4.54 143 $6.20 186 $8.17 360 $6.61 403 $6.20 487 $5.81

15 $8.31 58 $7.62 101 $4.56 144 $6.36 187 $8.30 361 $5.92 404 $5.65 492 $6.27

16 $8.62 59 $7.67 102 $4.74 145 $6.55 188 $8.40 362 $5.78 405 $5.44 493 $6.17

17 $9.05 60 $7.92 103 $5.31 146 $6.94 189 $8.73 363 $5.71 406 $5.16 494 $5.46

18 $9.38 61 $8.39 104 $5.85 147 $7.41 190 $8.84 364 $7.02 407 $4.96 495 $5.41

19 $9.65 62 $8.48 105 $6.04 148 $7.57 191 $7.12 365 $6.61 408 $4.54 496 $5.14

20 $10.01 63 $8.77 106 $6.26 149 $7.73 192 $7.45 366 $6.33 409 $6.47 497 $5.25 21 $5.38 64 $9.40 107 $6.39 150 $7.85 193 $7.63 367 $5.92 410 $6.20 198 $5.38

22 $4.50 65 $9.73 108 $6.75 151 $8.00 194 $9.81 368 $5.92 411 $5.99 499 $7.71

23 $4.28 66 $3.62 109 $6.75 152 $8.19 195 $5.30 369 $5.78 412 $5.65 500 $8.05 24 $5.62 67 $3.39 110 $6.98 153 $8.56 196 $5.87 370 $5.44 413 $5.16 501 $8.38

25 $5.63 68 $3.16 111 $7.52 154 $5.57 197 $5.04 371 $5.92 414 $4.82 502 $8.78

26 $5.63 69 $4.47 112 $7.63 155 $5.13 198 $6.28 372 $5.65 415 $7.44 "503 $9.12

27 $5.97 70 $4.71 113 $4.73 156 $4.86 199 $6.35 373 $5.37 416 $7.23 504 $9.57

28 $6.15 71 $4.65 114 $4.73 157 $5.01 200 $6.54 374 $5.85 417 $7.02 505 $6.02

29 $6.60 72 $5.29 115 $4.38 158 $5.22 201 $6.72 375 $5.30 418 $6.75 506 $8.23

30 $7.29 73 $5.52 116 $4.49 159 $5.34 202 $7.00 376 $5.30 419 $6.47 507 $8.69

31 $7.32 74 $5.97 117 $4.67 160 $6.01 203 $7.36 377 $6.61 420 $6.20 508 $9.17

32 $7.55 75 $6.39 118 $4.66 161 $5.94 204 $8.04 378 $6.33 421 $5.92 509 $9.66

33 $7.66 76 $6.65 119 $4.74 162 $6.43 205 $8.11 379 $6.06 422 $5.65

34 $7.70 77 $5.06 120 $5.22 163 $6.67 206 $8.43 380 $5.65 423 $5.37

35 $8.01 78 $5.22 121 $5.22 164 $6.76 207 $8.52 381 $5.51 424 $5.16

36 $8.05 79 $5.47 122 $5.64 165 $7.10 208 $8.60 382 $5.23 425 $7.78

37 $8.08 80 $6.04 123 $6.04 166 $7.10 209 $8.66 383 $5.09 426 $7.57

38 $8.40 81 $6.36 124 $6.49 167 $7.33 210 $9.00 384 $5.23 427 $7.44

39 $8.66 82 $6.65 125 $6.36 168 $7.68 211 $9.41 385 $4.89 428 $6.75

40 $8.79 83 $6.79 126 $6.79 169 $7.94 212 $9.86 386 $6.75 429 $7.23

41 $9.33 84 $7.14 127 $7.35 170 $8.05 213 $10.02 387 $6.33 430 $6.95

42 $9.79 85 $7.21 128 $7.42 171 $8.16 214 $10.24 388 $6.13 431 $6.61

43 $4.57 86 $6.79 129 $7.67 172 $8.01 215 $10.31 389 $5.65 432 $6.20

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Attachment 2

DUFFERIN AGGREGATES TRUCK SAFETY POLICY

Dufferin Aggregates is vitally interested in the occupational health & safety of all of its employees, all of its subcontractors and members of the public. Our company is committed to meeting or exceeding all of the legal minimum requirements, duties, and the standards set by the applicable provincial health & safety legislation and highway traffic legislation.

We encourage every employee and subcontractor to be concerned not only about their own health and safety, but also to ensure healthy and safe work practices on the part of other employees and workers with whom they work.

Health & safety is everyone's business. Ensuring full compliance with the applicable provincial health & safety legislation and highway traffic legislation, will not only make our company a healthier and safer workplace, but will improve employee morale and encourage other good business practices.

All employees and subcontractors and are required to comply with all statutory requirements concerning the highway traffic legislation, the health & safety of workers in the workplace, as well as the safe work procedures, the Company health and safety rules and any other requirements of the Company's Health & Safety Program.

In addition to the applicable provincial occupational health & safety legislation, and highway traffic legislation, and its regulations related to mining projects, the Company adopts and will enforce the following rules:

• All workers must read and become familiar with the Company's Health & Safety Program, the Truck Safety Policy, the Occupational Health & Safety Act, the Regulations respecting Mines and Mining Plants, and the Highway Traffic Act and its regulations, and adhere to the safe work procedures as detailed therein.

• Dufferin Aggregates reserves the right to refuse to issue a weight bill if the truck exceeds its statutory weight limits, or if the truck driver cannot supply information as required by Dufferin Aggregates.

• All truck drivers must have and supply Dufferin Aggregates with the following information upon initial entry onto the workplace and thereafter upon reqlfest of Dufferin Aggregates:

1. Valid Drivers License matching the type of vehicle driven 2. Ministry of Transportation Registration Gross Weight Papers 3. Proof of Insurance coverage, minimum of 1 million dollars ($1 ,000,000)

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4. Proof of ownership 5. Proof that the driver has received a copy of Dufferin Aggregates Health &

Safety Policy and Truck Safety Policy 6. Valid WCB Clearance Certificate or Waiver of Coverage (Not Applicable for

Tandem Union Drivers) 7. Proof of valid CVOR certificate, maintaining an acceptable violation rate in

accordance with criteria set out by the Ministry of Transportation. 8. Proof of a current valid Annual Inspection Sticker and Certificate

• No Person shall work in a manner that will endanger himself or another person.

• The use of intoxicating substances such as alcohol or drugs will not be permitted at the workplace at any time. Persons under the influence of alcohol or intoxicating substances will not be permitted access to the workplace.

• Dufferin Aggregates will not accept, tolerate or condone any breach of any statutory requirements of our health & safety policy & program or our truck safety program.

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Health & Safety Policy and Program And

Truck Safety policy

I acknowledge that I have received a copy of the Dufferin Aggregates Health & Safety Policy and Program, and Dufferin Aggregates Truck Safety Policy.

Date Name (Printed)

Signature

Legal Company Name (printed)

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