SHOP FABRICATING AGREEMENT

between

KEL-GOR LIMITED

Hereinafter referred to as the "Employer"

and the

INTERNA TIONAL BROTHERHOOD OF BOILERMAKERS, IRON SHIP BUILDERS, BLACKSMITHS, FORGER AND HELPERS

LOCAL # 128

7 Queen Elizabeth Blvd. Toronto, Ontario

M8Z lL9

Hereinafter referred to as the "Union"

ARTICLE 1 - RECOGNITION AND PURPOSE

Section 1 - The Employer recognizes the Union as the sole collective bargaining agency for its employees in its fabricating plant.

This Agreement shall not apply to timekeepers, engineers, office and clerical workers, and shop men above the rank of Foreman. This Agreement shall not apply to employees employed on Boilermaker field construction.

Section 2 - The purpose of this Agreement is to govern wages and working conditions so as to promote orderly harmonious relations between the Employer and its employees, and the Union agrees to cooperate with and assist the Employer in every legitimate way to conduct a successful business, bearing in mind that both parties must give service to the public.

ARTICLE 2 - MANAGEMENT RIGHTS

Section 1 - It is the Employer's right to operate and manage its business in all respects in accordance with its responsibilities and commitments. The location of jobs, the choice of equipment, the schedules of manufacture, the methods and means of manufacture, are solely and exclusively the responsibility of the Employer.

Section 2 - The Employer has the right to make and alter from time to time, rules and regulations to be observed by its employees, provided that they are not inconsistent with this Agreement.

Section 3 - It is an exclusive function of the Employer to hire, promote, demote, transfer, suspend, discipline or discharge for cause, employees in the bargaining unit, subject to the provisions of this Agreement. All promotions, demotions, and supervisory personnel to be posted on the bulletin board.

Section 4 - Nothing in this article shall be interpreted to prejudice other unspecified traditional rights of management.

Section 5 - The procedure for disciplinary action will be as set forth III the Letter of Understanding and Clarification #3.

ARTICLE 3 - UNION SECURITY AND CHECK-OFF

Section 1 - The Employer agrees to employ as employees only members in good standing with the Union in the performance of all work within the scope of this Agreement.

The Employer shall have the right to determine the competency and qualifications of its employees and to discharge any employee for any just and sufficient cause.

The employer shall first (1st) contact the Shop Representative of the Union or Local Area Representative before hiring and shall hire union members from the shop list or Union hall before any other attempt to procure workers. If the Union is unable to furnish the desired workers, the Company may then hire from any other sources provided that any such workmen procured shall join the Union as per the current language in the Agreement no later than ninety (90) days after hiring.

This does not apply to reinstatement in which case, the workman shall pay his reinstatement fee before going to work. The Employer will deduct from the first pay period of each month, union dues covering all employees engaged on work coming within the scope of this Agreement, also initiation fees or reinstatements covering new employees and promptly remit same together with list of names of the employees whose union dues, initiation fees or reinstatements are so deducted to the Secretary Treasurer of the Local Union. The Employer shall also deduct one-half of one percent (1 /2%) (shop dues assessment) of the gross hourly wage and submit it monthly along with monthly dues.

ARTICLE 4 - SENIORITY

Section 1 - Seniority under three (3) years

Ability to perform the work required shall govern when forces are reduced or on recall to work. New employees shall not have seniority, but upon completion of a probationary period of ninety (90) calendar days, seniority shall then be established and dated back to the time of hiring when recalling employees.

Section 2 - Seniority three (3) years and over All Members of the Bargaining Unit pre/September 1st 2014 "List A" included.

a) Seniority shall be defined as length of continuous service in the employment of the Company.

b) Seniority in the classification where the employee is employed shall govern layoff. Seniority in the classification where there is a recall shall also govern.

c) If two (2) employees have the same seniority in the classification on layoff for recall, then ability shall govern.

d) A laid off worker must inform the Company of his intention to return to work within three (3) days of written notice by registered mail or personal contact. The employee then has seven (7) days from the notice to return.

e) An employee shall not suffer loss of seniority because of sickness, accident or authorized leave of absence or union duties.

t) Separate lists of seniority dates shall be supplied once a year (September 1 st) to the Shop Steward, and posted on the bulletin board. If there are no objections after five (5) working days, the list as posted shall stand. Any member of the Bargaining Unit who is affected by a change in seniority shall be notified prior to the posted list standing.

g) The Employer shall confer with the Shop Steward on layoff or recall to make sure there is no mistake. A two (2) day period shall be given in each case to check the lists.

h) Seniority shall terminate and an employee shall cease to be employed by the Company when he/she is off work for a continuous period of six (6) months with less

than 7 years and twelve (12) months with more than seven (7) years seniority, except for which is outlined above in e).

i) Members on the included seniority list (list A) upon layoff shall maintain seniority for twelve (12) months. Members included on "List A" when returning to work from a temporary layoff shall be placed back at their previous pay and previous skill set within the Shop. When a members' recall rights expire or he/she retires or quits they will be removed from the "List A".

Section 3 - Qualifications for Benefits

For the purpose of qualifying under this Agreement for vacation pay, and health and welfare, the Employer agrees to credit union members newly hired with their full period of membership in Local Lodge # 128.

ARTICLE 5 - REPRESENTATION

For the purpose of carrying out the provisions of this Agreement, the Employer shall deal only with the accredited representatives of the Union. The Employer recognizes the right of the Union to appoint, or otherwise select Shop Stewards whose duties will be to assist the Employer and Union in carrying out the provisions of this Agreement. Stewards will be allowed reasonable time to perform their stewards duties and will be retained to the last ten (10) men provided they have the ability and qualifications to perform the work required. The Steward and Bargaining Unit will be provided a telephone for correspondence in private with the permission of Management.

ARTICLE 6 - GRIEVANCE PROCEDURE

It is the mutual desire of the parties to hereto that complaints for employees shall be adjusted as quickly as possible, and it is understood that an employee has no grievance until he has first given his Foreman or Supervisor an opportunity to adjust his complaint.

If an employee so desires he may request the assistance of his Steward in order to endeavor to settle his complaint with his Foreman or Supervisor. Should the complaint the employee has, not be satisfactorily adjusted within forty eight (48) hours, it shall be reduced to writing and may then become a subject for discussion as provided for in the following paragraph.

The grievance shall be discussed at a meeting between the Local or International Representative of the Union and the Employer. If the grievance is not settled to the satisfaction of both parties within a reasonable period of time, then, at the request of either party to this Agreement, it shall be referred to arbitration in accordance with the Ontario Labour Relations Act.

If arbitration is to be invoked, the request for the arbitration must be made within ten (10) working days after the meeting between the International Officer and the Employer.

ARTICLE 7 - HOURS OF WORK

Section 1 - Eight (8) hours per day, 7:30 a.m. to 12:00 noon and 12:30 p.m. to 4:00 p.m. five (5) days per week, shall constitute a nonnal days work.

Section 2 - Forty (40) hours shall constitute a nonnal weeks work. Monday to Friday inclusive. Working hours may be changed only with mutual consent of the Employer and the Union.

Section 3 - Any employee reporting for work at his regular starting time, or called in at any time other than his regular time, shall be guaranteed a minimum of four (4) hours work, or pay in lieu of work, at his regular rate of pay for that day.

ARTICLE 8 - SHIFT WORK

Section 1 - When other than one (1) shift is worked, eight (8) hours work with a shift premium often percent (10%) over the employee's regular rate per hours, shall constitute the second (2nd) shift. And seven (7) hours work with a shift premium on the basis or prorated nine (9) hours, a days pay shall constitute the third (3rd) shift.

Section 2 - The employee working on second (2nd) or third (3rd) shift must continue for a period of three (3) consecutive working days to constitute shift work. In the event an employee does not receive three (3) consecutive shifts, said employee shall be compensated at the overtime rates applicable. The second (2nd) shift starts at 4:00 p.m. Monday and the third shift shall follow the second (2nd) shift.

Section 3 - Where shift work is being worked and where possible, each employee shall change shift every month, but if an employee is on a second (2nd) or third (3rd) shift and elects to stay on that shift, he may do so. One (J) working days notice is to be given on shift change.

Section 4 - Shift premium shall apply on all hours worked on second (2nd) and third (3rd) shifts at the rates provided, also on Saturday, Sunday and all holidays provided for in this Agreement.

Section 5 - When necessary to take an eight (8) hour break between change of shift or hours of work, the employee shall not suffer any loss of hours from that nonnal days pay Monday to Friday.

Section 6 - When an employee is required to return to work without an eight (8) hour break, all work perfonned shall be paid for at the applicable overtime rates, until such time as the employee receives an eight (8) hour break.

ARTICLE 9 - RATES OF WAGES AND CLASSIFICATIONS

Section 1 - The minimum rates of wages and classifications for all employees hired after the Ratification date of this contract will be paid at Appendix "8" rates. Members on the included seniority list (attached) shall be paid their current rate in accordance with Appendix "A" and be eligible for all percentage raises negotiated in future contracts.

Section 2 - All Foremen shall be paid two dollars ($2.00) per hour over the minimum for Journeyman.

All Sub-Foremen shall be paid one dollar ($1.00) per hour over the mlDlmum for Journeyman.

Section 3 - Foremen will be allowed to work up to and including eight (8) men after which he shall be allowed to only physically instruct for safety or teaching.

Section 4 - Upon layoff, the Company where practical, will provide the employee his R.O.E. separation slip and will try to distribute the following day and within two (2) working days shall mail by Registered Mail or Special Delivery all monies owing.

Section 5 - Pay day at noon on Thursday. All employees will participate in the company' s direct deposit program.

Section 6 - Two (2) hours notice from layoff, but members must work the complete shift. If not notified they will receive two (2) hours pay to pick up cheque.

ARTICLE 10 - OVERTIME

Section 1 - All work performed after the close of the regular working day, Monday to Friday inclusive, and on Saturdays and Sundays shall be paid for at the rate of double (2x) time for hours worked.

Section 2 - If an employee is required to work one (1) of the recognized holidays, he shall be paid double (2x) time for hours worked.

Section 3 - When overtime work extends beyond two (2) hours after the close of a regular working shift, the employee working shall be provided with a meal paid for by the Employer and a thirty (30) minute meal break paid for at the applicable overtime rate. If overtime work is to extend beyond an additional four (4) hours, the employees will be provided with another meal paid for by the Employer and a thirty (30) minute meal break paid for at the applicable overtime rate. Additional meals will be provided after each subsequent four (4) hour period with a limit of twenty dollars ($20.00) per meal. If required, the meal allowance will be paid tax free on the cheque.

ARTICLE 11- VACATION PAY

Section 1 - All employees shall be paid vacation pay weekly on their gross earnings as outlined below.

Section 2 - Holidays will be allowed providing three (3) weeks notice is provided.

LENGTH OF SERVICE

Up to 90 days probationary period After 90 days probationary period

PERCENTAGE FOR VACATION PAY

Six percent (6%) Nine percent (9%)

This applies for new members except as provided in Article 4.

ARTICLE 12 - RECOGNIZED HOLIDAYS

Good Friday Dominion Day Labour Day Remembrance Day Christmas Day New Year's Day Family Day

Statutory Holiday Pay 4%

Victoria Day Civic Day Thanksgiving Day Boxing Day 112 day before Christmas Day 112 day before New Year's Day

ARTICLE 13 - JURY DUTY

If an employee is absent from work because of his having to serve on a jury, he shall be paid the difference between the pay for such jury duty and his regular pay for the duration of such absence.

ARTICLE 14 - BREAK PERIODS

Section 1 - There shall be two (2) break periods of ten (10) minutes each per shift and five (5) minutes wash up time before lunch and at the end of shift. There will be a fifteen (15) minute break after eight (8) hours worked.

Section 2 - The Foreman and Steward will supervise the break period.

ARTICLE 15 - SCOPE OF AGREEMENT

The wage rate and working conditions contained in the Agreement shall apply to all work perfonned by the Employer in their shops.

ARTICLE 16 - HEALTH AND WELFARE

Section 1 - For the period of September 01,2006 to August 31, 2007, the Employer shall contribute one dollar and ninety cents ($1.90) per hour to the Boilennakers ' National Plan Employee Benefit Trust Funds for all hours worked by all employees covered by this Agreement. On September 0 I, 2007 the contribution will increase to two dollars and five cents ($2.05). Contributions on all overtime hours shall be doubled to three dollars and eighty cents ($3.80) and four dollars and ten cents ($4.10) per hour respectively.

Section 2 - Upon completion of probationary period, the Employer shall pay the minimum amount of health and welfare contribution required to institute coverage.

Section 3 - It is agreed that during the life of this Agreement, Management and the Union will review the Health and Welfare Plan in the shop.

* Rate may change due to an increase or decrease in contribution.

ARTICLE 17 - PROTECTIVE CLOTHING

Section 1 - All employees after ninety (90) days probationary period shall qualify for a two hundred dollar ($200.00) boot allowance per year or prorated to the number of months employed and paid at lay-off.

Section 2 - At no cost to the employee two (2) pairs of coveralls will be provided with the dirty pair to be picked up Monday morning and returned clean by Friday. The repair and replacement of coveralls to be agreed upon by the Steward and the Shop Foreman.

Section 3 - Gloves suitable to the work performed will be supplied to all employees as required, and welding gloves, or gauntlets, welding jackets, etc. , as required for welders and burners.

ARTICLE 18 - NO STRIKES OR LOCKOUTS

The Union agrees that there will be no strikes or other collective action which will stop or interfere with production and if any such collective action should be taken, it will instruct those of its members who participated in such collective action to carry out the provisions of this Agreement and return to work and perfonn their work in a manner acceptable to the Employer. The Employer agrees that it will not cause or direct any lockout of its employees.

ARTICLE 19 - BOILERMAKERS' NATIONAL PENSION FUND (CANADA)

For the period of September 01 , 2006 to August 31, 2007, the Employer shall contribute three dollars and twenty five cents ($3 .25) per hour to the Boilermakers' National Pension Fund (Canada) for all hours worked by employees covered by this Agreement. Contributions on all overtime hours shall be doubled to six dollars and fifty cents ($6.50) per hour. These contributions shall increase by twenty-five cents per hour for the life of the contract.

* Rate may change due to increase in contribution.

ARTICLE 20 - BEREAVEMENT PAY

In the event of the death of a Father, Mother, Spouse, Son or Daughter of an employee who has completed the probationary period and is actively employed at the time of bereavement, the Employer shall grant a leave of absence with pay not exceeding three (3) days at the time death occurs providing these are days the employee would normally have reported to work Monday to Friday.

In the event of the death of a Mother-in-law, Father-in-law, Brother, Sister, Brother-in-law, Sister-in-law, Grandchild, Grandparents or Grandparents-in-Iaw of the employee, the Employer shall grant two (2) days leave of absence with pay for the purpose of attending the funeral, providing these are days the employee would nonnally have reported to work Monday to Friday.

If the employee does not attend the funeral, the employee shall be granted one (1) day leave rather than two (2) days leave as provided for in the previous sentence.

ARTICLE 21 - QUALITY ASSURANCE

The Employer agrees that all quality assurance work carried out by sub-contract inspection to include but not be limited to, x-ray, ultrasonic and other testing, and inspection procedure shall be done by members of the Quality Control Council.

ARTICLE 22 - ENABLING CAUSE

Where a particular article or articles of this Collective Agreement is or are found to work a hardship for a particular project, the terms and conditions of this Agreement may be modified by mutual consent of the Union, the workers and the contractor, where mutual agreement for such change cannot be achieved. The request shall not be subject to either grievances or arbitration.

ARTICLE 23 - DURATION QF RENEWAL QF AGREEMENT

This Agreement shall become Rolled over October 21, 2015 and shall remain in full force and effect until March 31, 2016 and year to year thereafter unless either party shall, at least thirty (30) days prior to any anniversary date thereafter notify the other party of this Agreement in writing of any proposed changes to this Agreement. Any such notice shall be specific as to the sections of the Agreement to be affected thereby and negotiations shall be limited to such sections. In the event such notice is given, the parties shall meet not later than fifteen (15) days after receipt of such notice, and shall conclude negotiations without necessary delay.

Signed this 2. I !. f day of 0 ,,f ohu" ,10 1 ,. .

For Kel-Gor Limited: For Local 128:

F~·~·d ' re !ver, !ce- res! ent Dalas Santavy, Business Representative

anager ~ Kevin Courtney, Steward d

List A

Employees included on this list are paid according to Appendix A (attached)

List of Employees:

J. Hyatt

R. Long

R. Dunn

K. Courtney

M. Beauchamp

L. Deleew

M. Thevenot

J. Nickles

T. Spicer

A. Chute

R. Joseph

J. Fournie

Appendix A

Categories Current Rate (2015)

Boilelmaker JM $29.63

Boilennaker FM $31.86

A ppren ti ce 1 $16.61

Apprentice 2 $20.10

Apprentice 3 $23.11

Apprentice 4 $26.38

Tool Attendant $16.35

Labourer $ 12.36

Vacation/Stat Pay 13.0%

Pension $4.00

Welfare $2.05

Union Fund $0.01

Categories

Layout - All Categories

Fitter - Structural Only

Welder 1 - Pressure

Welder 2 - Structural

Apprentice I - 60% Fitter

Apprentice 2 - 70% Fitter

Apprentice 3 - 80% Fitter

Apprentice 4 - 90% Fitter

Tool Attendant

Labourer

Vacation

Stat Pay

Pension

Welfare

Union Fund

Category

Welder 2 - Structural

Welder 1 - Pressure

Fitter - Structural only

Layout - All categories

Appendix B

Current Rate (2015)

$24.89

$23.70

$21.48

$20.46

$14.22

$16.58

$18.96

$21.33

$14.22

$11.09

4%

4%

$4.00

$2.05

$0.01

Capability

Welding structural steel - CWS ticket only

Welding pressure parts - ASME ticket

Cutting and fitting only - structural steel

Capable of all types of structural and pressure vessel fabrication