By and between:

Collective Agreement

Mammoet Crane Inc. Shop Agreement 127 Earl Thompson Place R. R. #1 Ayr ON NOB 1 EO NOB 1EO Tel: 519·622-1503 Fax: 519-622-7640

hereinafter referred to as the "Employer"

- and-

,;·

International Union of Operating Engineers, Local793

hereinafter referred to as the "Union"

Duration: July 1, 2008 to June 30, 2011

TABLE OF CONTENTS

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Between:

AGREEMENT

Mammoet Crane Inc. Shop Agreement 127 Earl Thompson Place R. R. #1 Ayr, Ontario NOB 1EO Tel: 519-622-1503 Fax: 519-622-7640

hereinafter referred to as the "Employer"

-and-

International Union of Operating Engineers, Local793

hereinafter referred to as the "Union"

1.1 The general purpose of this Agreement is to establish collective bargaining relations between the Employer and the Union, to continue the co-operation and spirit of good will between the Employer and its employees, to provide machinery for the prompt disposition of grievances arising under this Agreement and to set forth negotiated conditions of employment for all employees who are subject to this Agreement.

2.1 This Agreement shall apply to all employees of Mammoet Crane Inc., working at or out of Ayr save and except persons above the rank of foreman, office and sales staff, and persons covered by a subsisting Collective Agreement between the Operating Engineers Bargaining Agency and the Operating Engineers Employee Bargaining Agency.

Page I of14 Mammae! Crane Inc. - Shop Agreement Effective July I, 2008 to June 30,2011

3.1 All present employees will be required, as a condition of continuing their employment, to join the Union and to execute a Dues Deduction Authorization form in a form supplied by the Union either:

a) on attaining seniority, or b) within fifteen (15) days of the date of this Agreement, whichever last occurs.

3.2 All new employees hired on or after the date of this Agreement will be required as a condition of employment to pay dues and on completion of their probation, must become a member and remain a member in good standing.

3.3 The Employer agrees to deduct from each employee in the bargaining unit Working Dues, Advancement Dues, Annual Assessments and Initiation Fees of each employee covered by this Agreement and to remit such monies to the Head Office of the Union not later than the 151

h day of the month following the date such deductions were deducted.

3.4 For the purpose of providing training, Operator Apprentices shall be entitled to work in the shop and yard for the purpose of gaining work experience and further, Operator Apprentices will not replace the regular employees covered by this Agreement on work which is exclusive to this Shop Agreement.

4.1 The Union agrees and acknowledges that the Employer has the exclusive right to manage the business and to exercise such right without restriction, save and except such prerogatives of management as may be specifically modified by the terms and conditions of this Agreement.

Without restricting the generality of the foregoing paragraph, it is the exclusive function of the Employer:

a) To determine qualifications, classify, transfer, hire, direct, promote, demote, Jay­off, discipline and discharge employees for just cause and to increase and decrease working forces in accordance with the terms of this Agreement

b) To determine the materials to be used, design of the products to be handled, facilities and equipment required, scheduling of work and locations of equipment.

c) To determine the rules and regulations to be observed by employees, violation of which may be the cause for discipline and may include discharge.

4.2 The Employer recognizes that the employee and the Union have recourse through the grievance procedure if they feel that the Employer has exercised any of the foregoing rights contrary to the terms of this Agreement.

At the request of the employee concerned, incidents of alleged discharge for cause shall be in writing.

Page 2 ofl4 Mammoet Crane Inc.- Shop Agreement Effective July I, 2008 to June 30, 2011

5.1 There shall be an earnest effort on the part of both parties to this Agreement to settle promptly through the grievance procedure set out herein, any complaints, grievances, or disputes arising from the interpretation, application or administration of this Agreement.

5.2 All grievances to be dealt with under Step 2 below, shall be in writing, on forms supplied by the Union and signed by the employee having such grievance.

5.3 Written grievances, to be valid, shall set out the nature of the grievance, the Article or Articles of the Agreement alleged to have been violated and the nature of the remedy sought and shall not be subject to change at later steps except by mutual agreement in writing with the Employer, or in the case of remedy, by an Arbitration Board.

5.4 In determining the time which is allowed in the various steps, Saturday, Sunday and Statutory Holidays shall be excluded and any time limits may be extended by mutual agreement in writing.

5.5 If advantage of the provisions of Articles 5 and 6 hereof is not taken within the time limits specified therein or as extended in writing as set out above, the grievance shall be deemed to have been abandoned and may not be re-opened.

5.6 The Employer shall designate and name the official to whom a written grievance is submitted in Step No. 2.

5. 7 It is understood and agreed that an employee does not have a grievance until he has discussed the matter with his foreman or other supeNisory personnel acting in this capacity and given him an opportunity of dealing with the complaint. His decision shall be made known to said employee within forty-eight (48) hours.

Grievances properly arising under this Agreement shall be adjusted and settled as follows:

Step No. 1 -Within ten (1 0) full working days after the circumstances giving rise to the grievance occurred or originated, the aggrieved employee and/or a Union representative, shall present the grievance in writing to the official of the Employer named by the Employer to handle grievances at this step. If a settlement satisfactory to the Union and the employee concerned is not reached within two (2) full working days, the grievance may be presented as indicated in Step Two at any time within five (5) full working days thereafter or if the grievance involved monetary, discipline or discharge matters, not involving the interpretation of the Agreement to final and binding determination.

Page 3 of14 Manunoet Crane Inc. - Shop Agreement Effective July I, 2008 to June 30,2011

Article 5 -continued

Step No. 2 - At this step the grievance may be processed as an individual, joint, or Union grievance and shall be presented in writing by a Union Steward or Representative to the Employer official assigned to handle written grievances. Should no settlement satisfactory to the Union be reached within five (5) full working days the grievance may be submitted to arbitration.

The Employer or the Union may process a written grievance at this step concerning the interpretation of alleged violation of the Agreement.

5.8 A claim by an employee that he has been unjustly discharged or laid off shall be treated as a grievance and may be taken up under Step No. 2 of the Grievance Procedure provided a written statement of such grievance is lodged with the Employer within five (5) working days after the discharge or lay-off is effected. Such special grievances may be settled under the Grievance Procedure by:

a) confirming the Employer's action in dismissing or laying off the employee; b) reinstating the employee with full compensation for time lost; or c) by other arrangement which may be deemed just and equitable.

6.1 The parties to this Agreement agree that any grievance concerning the interpretation or alleged violation of this Agreement which has been properly carried through all the steps of the Grievance Procedure outlined in Article 5, which has not been settled will then be referred to a Board of Arbitration at the request of either of the parties hereto.

6.2 The Board of Arbitration will be composed of one person appointed by the Employer, one person appointed by the Union and a third person to act as Chairman chosen by the other two members of the Board.

6.3 Within five (5) working days of the request of either party for a Board, each party shall notify the other in writing of the name of its appointee.

6.4 Should the person chosen by the Employer to act on the Board and the person chosen by the Union fail to agree on a third member as Chairman within five (5) days of the notification mentioned above, the Minister of Labour of the Province of Ontario will be asked to appoint a Chairman.

6.5 The decisions of the Board of Arbitration or a majority of such Board constituted in the above manner shall be binding on the parties to this Agreement.

6.6 The Board of Arbitration shall not have any power to alter or change any of the provisions of this Agreement nor to substitute any new provisions for any existing provisions, nor to give any decisions inconsistent with the terms and provisions of this Agreement.

6.7 Each of the parties to this Agreement will bear the expense of the Arbitrator appointed by it and the parties will jointly bear the expense of the Chairman.

Page 4 of14 Mammoet Crane Inc.- Shop Agreement Effective July!, 2008 to June 30,2011

7.1 During the term of this Agreement the Union agrees that there shall be no strike and the Employer agrees there shall be no lockout.

7.2 Tile words "Strike" and "Lockout" in this Agreement shall mean "Strike" and "Lockouf' as dEfined in the Ontario Labour Relations Act.

8.1 Tile Employer shall not refuse permission to any representative of the Union upon request to enter the Employer's premises in the administration of this Agreement, provided that it does not interfere with the work.

8.2 Tile Employer agrees to recognize both a Union Steward and an Alternate Steward as may be appointed by the Union but shall not be obliged to recognize such stewards until they have been informed in writing of the names of all stewards as they were appointed.

Tile Steward will be one of the last employees covered under the Collective Agreement providing he is capable and competent of performing the work.

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9.1 When a new employee has accumulated one hundred and sixty (160) working days of employment he shall be defined as a regular employee, and his seniority will then date back to his original starting date with the Employer.

It is understood and agreed that the seniority provisions of this Collective Agreement shall not apply to mechanic apprentices or truck drivers. Seniority for mechanic apprentices shall commence when they attain their certificate of qualification. It is also understood and agreed that all other terms and conditions of this Collective Agreement shall apply for mechanic apprentices.

9.2 When it is necessary to lay-off regular employees or rehire regular employees who have been laid off, the employee to be laid off or rehired shall be selected on the basis of seniority combined with performance of work assigned within their classifications.

9.3 A Seniority List shall be posted for the Shop employees. Copies shall be issued to the Union where employees are added or deleted.

9.4 A regular employee shall Jose his seniority if he-

a) b) c) d)

Page 5 of 14

Voluntarily quits the employ of his Employer; Is discharged and not re-instated through the Grievance Procedure; Is laid off and is not re-employed within 180 days from Jay-off; Fails to return to work within five (5) days after he has been notified by the Union or if he fails to advise the Union within six (6) days of receipt of notice of his intention to return.

Mammoet Crane Inc.- Shop Agreement Effective July I, 2008 to June 30, 2011

Article 9 - continued

9.5 A regular employee who is requested to return to work and who is not immediately available may be passed over and a more junior employee may be called instead, subject to displacement by the more senior employee when he does report for work within five (5) days of notification to do so.

9.6 When a regular employee fails to report for work or is unable to report or must cease to work for personal reasons, the Employer may recall employees laid-off to fulfil the work assignments of such employee and the replacement employee shall be paid for the whole of the week or for such days as he was required to replace the employee normally holding that job.

9. 7 A regular employee shall not lose his seniority if he received written permission for an extended leave of absence to further or better his employment through work related courses.

9.8 Employees may be temporarily transferred from one shop location to another under the following conditions:

a) Seniority may not be accumulated in more than one shop location, and b) An employee will not accumulate seniority in the shop to which he has been

temporarily transferred nor will he Jose any seniority in the shop from which he was temporarily transferred.

Notwithstanding (a) and (b), the Employer and the employee may agree to a permanent transfer, in which case, the employee will lose his seniority in his original shop location upon establishing seniority in his new shop location .

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10.1 The standard work week for employees covered by this Collective Agreement shall be forty-two and one-half (42%) hours from Monday to Friday inclusive. The standard workday shall not be more than eight and one half-hours (8%) hours per day at straight time rates. The regularly assigned hours shall be from 8:00 a.m. to 5:00 p.m. with a one-half hour lunch period without pay. The starting and quitting time may be varied up to two (2) hours.

10.2 Overtime at one and one-half (1%) the regular hourly rate shall be paid for all work performed in excess of eight and one half- (8%) hours per day, Monday to Friday and on Saturday. All work performed in excess of twelve (12) hours per day, Monday to Friday and all work performed on Sunday and Statutory Holidays shall be paid at the rate of double (2X) the regular hourly rate. Double time shall continue for hours worked until the employee has eight (8) consecutive hours off.

10.3 Employees required to work a shift outside their regular hours shall receive a shift premium of Two Dollars ($2.00) per hour worked. Upon mutual consent employees may start the 2"d shift early, however, the shift premium shall not be applicable until they have completed their regular hours.

Page 6 of14 Mammoet Crane Inc. - Shop Agreement Effective July 1, 2008 to June 30, 2011

Article 10- <COntinued

10.4 While assembling, disassembling, maintaining and repairing equipment on the job site, the applicable hourly rate as per Schedule "A" of the Provincial Agreement shall apply. These employees shall not replace normal crews for the purpose of overtime, etc.

10.5 A.ny employee who reports for work on any regular working day, unless directed not to report the previous day by his Employer, shall receive a minimum of four (4) hours' pay at the applicable rate. An employee is not to report for work on weekends or Statutory Holiday days unless previously authorized to do so.

10.6 Truck driver hours will be paid at straight time up to 60 hours. Time and a Half (1%) the regular hourly rate will paid after sixty (60) hours per week.

11.1 A.ll work performed on the following holidays shall be paid at double (2X) the regular rate of wages:

New Year's Day Dominion Day Christmas Day Family Day Civic Holiday Boxing Day Good Friday Labour Day Victoria Day Thanksgiving Day

NOTE - If the Government of the Province of Ontario amends "Holiday" to include Heritage Day, such holiday shall be a holiday herein.

Should any of the above holidays occur on a Saturday or Sunday, such holiday shall be observed on the Monday and/or Tuesday following unless changed by mutual agreement between the Employer and the Union. No work shall be performed on Labour Day except to save life, limb or property.

11.2 All employees shall receive Vacation Pay at the rate of eight percent (8%) of gross wages earned for the first two (2) years of employment. It is understood and agreed that four percent (4%) of gross wages is to be considered in lieu of Statutory Holiday pay and four percent (4%) Vacation Pay. It is further agreed that ten percent (1 0%) Vacation Pay ( 4% Vacation Pay- 6% Statutory Holiday Pay) will be allocated to employees after two (2) years' service. It is further understood that Vacation Pay and Statutory Holiday Pay will be paid to employees on termination and on the first pay day of June and December in each year.

11.3 Vacations may be taken at any time within the calendar year (without Joss of position) and every effort shall be made to schedule vacations to benefit both the Employer and the Employee.

Page 7 ofl4 Manunoet Crane Inc. - Shop Agreement Effective July I, 2008 to June 30,2011

12.1 When an employee is required to start work before 6:00a.m. he shall be allowed up to Six Dollars and Eighty Cents ($6.80) for breakfast on the second day and thereafter on an extended trip of more than one day.

12.2 An employee shall be paid Eight Dollars and Fifty Cents ($8.50) for lunch on the second pay and thereafter on an extended trip of more than one day.

12.3 An employee shall be paid Eleven Dollars and Four Cents ($11.04) for dinner if required to work after 8:00 p.m. on the first day and if out of town on an extended trip thereafter.

An employee shall be paid an additional Seven Dollars and Nineteen Cents ($7.19) after 1:00 a.m.

12.4 When an employee is required to stay out of town overnight, he shall be paid all expenses authenticated by voucher, for sleeping.

13.1 Employees will be granted one (1) rest period of ten (1 0) minutes in each half shift.

13.2 The Employer shall supply to the employees, coveralls, one pair per week, providing that the trucks are kept clean. Cleanliness and maintenance is of paramount importance.

13.3 The Employer shall supply to the employees, cotton gloves with leather face for setting up and dismantling cranes.

13.4 The Employer shall supply to the employees, rain suits.

13.5 All shop employees are to file with their Employer, a listing of their tools showing their valuation and the Employer's liability shall be limited to such listings and the replacement value of such tools, in the event of fire and/or theft. A 'Tool List" for mechanics is attached as Appendix "A" and forms part of this agreement.

13.6 Employer will provide insurance for complete replacement of toolbox loss due to theft and/or fire.

13.7 The Employer will pay each employee up to a maximum of One Hundred Fifty Dollars ($150.00) per year for the purchase of approved safety footwear. Payment will be contingent upon the employee providing the Employer with adequate proof of purchase.

Page 8 ofl4 Mammoet Crane Inc.- Shop Agreement Effective July I, 2008 to June 30, 201 I

14.1 An employee who is injured in the course of performing his duties and requires medical attention by a physician and is certified by the physician that he is unable to continue work, shall be paid his regularly assigned hours on the day of injury; otherwise the employee shall be paid his regular wages for any lost time incurred that day due to the injury.

15.1 The Em player agrees to provide employees who have completed their probationary period with a company funded benefit plan and to supply Benefit Plan booklets to all eligible employees covered by this Collective Agreement.

15.2 The Employer also agrees to contribute the following amounts into a Registered Retirement Savings Plan for each employee who has completed their probationary period:

(a) Three Dollars and Twenty Five Cents ($3.25) per hour worked for work at or out of the Ayr yard and/or

(b) The applicable pension contribution set out in the Provincial Collective Agreement for all work performed on job sites

15.3 a) All contributions shall be submitted by the 15'" day of the following month in which the hours have been worked and at no time shall the contributions be paid directly to the employee. If payment is over thirty (30) days late, interest at two percent (2%) per month (24% Per Annum) shall be paid from the due date and in addition the delinquent Employer may be required by the Trustees of the funds to deposit with the Trustees a Two Thousand, Five Hundred Dollar ($2,500.00) cash bond.

b) In the event that a grievance alleging that an Employer has failed to remit the proper contributions, deductions or remittances to any Trust Fund or party as required by this Agreement, the parties agree that for the purposes of determining any issue, the following presumption shall apply:

A statement signed by a member of the Union, a Business Representative, a Trustee or the Administrator of a Trust Fund, shall be prima facie evidence of the number of hours worked by members of the Union and of a failure to make the appropriate payments as required by this Agreement. This evidence shall establish only a rebuttable presumption and may be challenged by the Employer with proper documentary evidence.

c) If the Ontario Labour Relations Board or a Board of Arbitration to which a grievance alleging failure to make appropriate payments to a Trust Fund or an Administrator as required by this Agreement is litigated and the Board determines that an Employer has violated the Agreement, then the Ontario Labour Relations Board or a Board of Arbitration shall also require the Employer to pay all reasonable costs incurred by the Union in prosecuting the grievance, including but not limited to, all legal costs on a solicitor-and-client basis, travel, meal and accommodation costs of all witnesses and Business Representatives, conduct monies, cost incurred in serving a summons, any

Page9 ofl4 Mammoet Crane Inc. - Shop Agreement Effective July I, 2008 to June 30, 2011

Artlcfe 15- continued

expenses incurred by the Union pursuant to Section 126(4) or otherwise, for the Board of Arbitration.

d) If the Ontario Labour Relations Board determines that the Employer has not violated the Agreement, then the Ontario Labour Relations Board or the Board of Arbitration shall require the Union to pay all costs to the Employer as required to in sub-paragraph (c) above.

15.4 Working Dues Check-Off

The Employer agrees to deduct from each employee in the bargaining unit, Working Dues at the rate of two percent (2%) of the employee's total wage package, which includes the hourly rate, vacation pay and health plan and pension plan contributions set out in the Collective Agreement, per hour earned.

15.5 Advancement Dues Check-Off

The Employer shall deduct ten cents (.1 0¢) per hour for each hour earned by each employee covered by this Agreement for Advancement Dues. The amount deducted shall be remitted together with other monthly contributions and deductions in the manner set out in this Collective Agreement.

15.6 The Union agrees to hold harmless and indemnify the Employer, and the Trustees against any liability incurred as a result of deductions made under 15.4 and 15.5 above.

It is understood and agreed that the implementation of the following wage schedule shall not result in the reduction of the hourly rate of any present employee.

16.1 Shop Foreman:

Page 10 of14 Mammoet Crane Inc. - Shop Agreement Effective July I, 2008 to June 30, 2011

'

Article 16 ~continued

16.2 Mechanic and Millwright:

16.3 Welder:

Page II of14 Manunoet Crane Inc. - Shop Agreement Effective July I, 2008 to June 30, 2011

"•

'

Article 16- continued

16.4 Labourer:

16.5 Driver:

The starting rate may be One Dollar ($1.00) per hour less than the current rate for new employees until they have completed their probationary period and attained seniority. It is understood and agreed that the Employer may raise the pay of a probationary employee at any time during the probationary period at its own discretion.

It is agreed that three (3) yard helpers will be allowed at the Ayr yard location. Such yard helpers shall not replace regular employees.

Page 12 of 14 Mammoet Crane Inc.- Shop Agreement Effective July I, 2008 to June 30, 2011

.. , '

' '

17.1 This Agreement shall become effective July 1", 2008 and shall continue in effect until June 30th, 2011 and shall continue automatically thereafter for annual periods of one year each unless either party notifies the other in writing within the period of ninety (90) days immediately prior to the annual expiration date that it desires to amend the Agreement.

Negotiations shall begin within fifteen ( 15) days following notification for amendment as provided in the preceding paragraph.

If, pursuant to such negotiations, an agreement is not reached on the renewal or amendment of this Agreement, or the making of a new Agreement prior to the current expiry date, this Agreement shall continue in full force and effect until a new Agreement is signed between the parties, or until conciliation proceedings prescribed under the Ontario Labour Relations Act, have been completed whichever date should first occur.

IN WITNESS WHEREOF each of the parties hereto has caused this Agreement to be signed by its duly authorized representative as of the date and year first above written.

DATED THIS ____ DAY OF-----------'' 2008.

SIGNED ON BEHALF OF:

Mammoet Crane Inc.

Signature

Garv Latta (Please Print)

127 Earl Thompson Place, R.R. #1 A yr. ON NOB 1 EO Address

519-622-1503 Telephone Number

Page 13 of14

SIGNED ON BEHALF OF:

International Union of Operating Engineers, Local 793

Mike Gallagher, Business Manager

Rick Kerr, Recording Corres. Sec.

Gary O'Neill, President

Recommended By: Steve Deady Business Representative

Mammoet Crane Inc. - Shop Agreement Effective July 1, 2008 to June 30,2011

'

APPENDIX "A"

1 Tool Box (size to conform to Department's requirements) 2 Chisels, cold, flat, set of 3 or more- 6mm, 12mm and 18mm 3 Drills, twist, from 1.5mm to 6.5mm in 0.5mm steps 4 Gauges, thickness, set 5 Gauges, spark plug set 6 Hack Saw Frame, 250mm or adjustable 7 Hammer, soft face 8 Hammers, bail peen -light, medium and heavy 9 Jackknife 10 Pliers, combination, 150mm 11 Pliers, diagonal cutting, 150mm 12 Pliers, waterpump 13 Pliers, battery 14 Pliers, needle nose 15 Pliers, brake spring 16 Punch, centre 17 Punches, taper, set 18 Punches, pin, set 19 Ruler, steel, 2m 20 Scraper, carbon 21 Screwdriver, flat blade, offset 22 Screwdrivers, flat blade, set of 6 (150mm up to 300mm) 23 Screwdrivers, Phillips, set of 4 of detachable head 24 Tape, ruler, steel, 3 m 25 Tube Cutter and Flaring Tool 26 Wrench, adjustable, crescent type, 150mm 27 Wrench, adjustable, crescent type, 300mm 28 Wrench, box end, starter and manifold 29 Wrench, vise grip, 250mm 30 Wrench, pipe, approximate length 350mm 31 Wrenches, socket, set, master, up to and including%'' sq. drive=

approximately 70 pieces 32 Wrenches, socket, set, spark plug = approximately 6 pieces 33 Wrenches, open end, set = 5/16" to 1 Y." 34 Wrenches, box end, set=%" to 1 Y.i" 35 Wrenches, tappet, set= approximately 6 pieces 36 Wrenches, Allen Head, set- approximately 8 pieces 37 Wrenches, ignition, set= approximately 8 pieces

Page 14 of 14 Mammae! Crane Inc. - Shop Agreement Effective July 1, 2008 to June 30,2011