Tinker Dam

AGREEMENT

BETWEEN

WPS CANADA GENERATION

and

LOCAL UNION 37

of the

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS

A.F. of L.

C.I.O. – C.L.C.

Effective December 16, 2007 – December 25, 2010

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TABLE OF CONTENTS ARTICLE 1 PREAMBLE .............................................................................................................................................1 ARTICLE 2 UNION RECOGNITION .........................................................................................................................1 ARTICLE 3 MANAGEMENT RIGHTS ......................................................................................................................1 ARTICLE 4 NO STRIKE OR LOCKOUT ...................................................................................................................1 ARTICLE 5 LEGALITY...............................................................................................................................................1 ARTICLE 6 NON-DISCRIMINATION .......................................................................................................................1 ARTICLE 7 COMPANY, UNION AND EMPLOYEE COOPERATION...................................................................2 ARTICLE 8 UNION MEMBERSHIP...........................................................................................................................2 ARTICLE 9 DEDUCTION OF UNION DUES............................................................................................................2 ARTICLE 10 EMPLOYEES – DEFINED....................................................................................................................3 ARTICLE 11 SENIORITY ...........................................................................................................................................3 ARTICLE 12 WAGE RATES.......................................................................................................................................4 ARTICLE 13 HOURS OF WORK................................................................................................................................4 ARTICLE 14 SUPERVISORS WORKING..................................................................................................................6 ARTICLE 15 ASSIGNMENT OF WORK ...................................................................................................................6 ARTICLE 16 OVERTIME COMPENSATION............................................................................................................6 ARTICLE 17 STANDBY .............................................................................................................................................7 ARTICLE 18 CALL-OUT ............................................................................................................................................8 ARTICLE 19 NON-DUPLICATION OF BENEFITS ..................................................................................................8 ARTICLE 20 MEAL DURING UNSCHEDULED OVERTIME.................................................................................8 ARTICLE 21 VACATIONS .........................................................................................................................................8 ARTICLE 22 HOLIDAYS..........................................................................................................................................10 ARTICLE 23 FUNERAL LEAVE..............................................................................................................................11 ARTICLE 24 JURY DUTY ........................................................................................................................................11 ARTICLE 25 CLOTHING/TOOLS ............................................................................................................................11 ARTICLE 26 SICKNESS AND ACCIDENT BENEFITS .........................................................................................12 ARTICLE 27 PENSION – INSURANCE...................................................................................................................13 ARTICLE 28 PERSONAL LEAVE OF ABSENCE...................................................................................................13 ARTICLE 29 POSTING AND PROMOTIONS .........................................................................................................13 ARTICLE 30 SAFETY ...............................................................................................................................................14 ARTICLE 31 INCLEMENT WEATHER...................................................................................................................15 ARTICLE 32 EMPLOYEE SECURITY.....................................................................................................................15 ARTICLE 33 TERMINATION – LAY-OFF AND RECALL....................................................................................15 ARTICLE 34 GRIEVANCE PROCEDURE...............................................................................................................16 ARTICLE 35 ARBITRATION ...................................................................................................................................16 ARTICLE 36 TECHNOLOGICAL CHANGE ...........................................................................................................17 ARTICLE 37 TERM OF AGREEMENT....................................................................................................................17 SCHEDULE A – 2007 ................................................................................................................................................19 SCHEDULE A – 2008 ................................................................................................................................................21 SCHEDULE A – 2009 ................................................................................................................................................22 SCHEDULE B - LEAD WORKER CLASSIFICATION ...........................................................................................23

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ARTICLE 1 PREAMBLE

This Agreement is made in duplicate by and between WPS Canada Generation, Inc., hereinafter referred to as the “Company”, and Local Union 37 of the International Brotherhood of Electrical Workers, A.F. of L., C.I.O.–C.F.L., hereinafter referred to as the “Union”. The parties to this contract agree that it shall have force and effect as between them as herein named and described and that this contract, for any part of its term, shall be binding on the parties. The parties recognize that the Company is a wholly owned subsidiary of Integrys Energy Services, which is a part of the Integrys Energy Group, Inc. headquartered in Chicago, Illinois. To promote harmonious relationships, the parties hereto desire to establish conditions and procedures under which the employees shall work for the Company during the term of this Agreement, to establish methods for the settling of disputes by peaceful means, and to provide for rates of pay, hours of work, and other conditions of employment for such employees

ARTICLE 2 UNION RECOGNITION

Section 1. The Company recognizes Local Union 37 of The International Brotherhood of Electrical Workers as the exclusive bargaining agent, for the purpose of collective bargaining with respect to rates of pay, wages, hours of work, and other conditions of employment, of all employees to whom New Brunswick, Industrial Relations Board Certification Order #I.R.B. 1-17-82 applies.

The bargaining unit is comprised of all employees holding job titles as listed in Schedule A, attached hereto and considered in all respects to be part of the Agreement, employed by the Company at the Tinker Hydroelectric Station in New Brunswick and engaged in the operation and maintenance of the dam and generating facilities.

Section 2. The term “employee” as used in this Agreement shall mean employees covered by this Agreement and for whom the Union is the recognized collective bargaining representative.

ARTICLE 3 MANAGEMENT RIGHTS

Section 1. It is agreed that subject to the terms of this Agreement, the Management of the business and the direction of the working force of the Company shall be within the sole control of the Company, including, but not limited to, the right to hire, promote, transfer between classifications within the plant, and to discipline, suspend or discharge for cause, and to lay off employees because of lack of work. The Company shall also determine the numbers and kinds of employees required at any particular time or place, the methods and equipment to be used, and the work assignments and tours of duty. Nothing in this Article is intended nor shall be construed as authorizing violation of this Agreement or of depriving the Union or any employee of any rights granted hereunder or determined by law.

Section 2. Agree that provided there are no further recurrences of discipline, written letters of discipline will remain in an employee’s personnel file for no more than three (3) years. In cases involving disciplinary time off, the three (3) year limit is extended to five (5) years. Last chance agreements will remain in the employee’s personnel file indefinitely and removal is at the sole discretion of the Company.

ARTICLE 4 NO STRIKE OR LOCKOUT

Section 1. In conformity with the Industrial Relations Act there shall be no strike(s) or lockout(s) during the term of this Agreement.

ARTICLE 5 LEGALITY

Section 1. It is understood and agreed that any part of the Agreement that may be construed by Provincial or Federal authority to be in conflict with any present or future laws shall be inoperative, but all other provisions shall continue in full force and effect.

ARTICLE 6 NON-DISCRIMINATION

The Company and the Union agree they will not discriminate against any employee because of race, creed, color, sex, age, or national origin. Where the masculine pronoun is used in this Agreement it shall be deemed to include the feminine gender.

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ARTICLE 7 COMPANY, UNION AND EMPLOYEE COOPERATION

Section 1. The Union and its members will use their best efforts to protect the interests of the Company, to protect its property, and to give service of the highest productive quality.

Section 2. Neither the Union, its agents, nor any of its members shall solicit employees for Union membership, collect dues or engage in other Union activities on Company time, unless specifically authorized in advance by an immediate supervisor on the day the employee engages in such activities. Union notices and literature shall not be distributed with the use of Company supplies or through the Company mailing system.

Section 3. It is agreed there will be no discrimination, interference, restraint, or coercion by the Company or any of its agents against any bargaining unit employee because of any lawful activities on behalf of the Union, or because of membership in the Union; and the Union, its members and agents, shall not coerce employees into membership in the Union.

Section 4. The Company agrees to provide and maintain a bulletin board, at the Tinker Plant, at a location to be agreed upon by the Union and the Company. The Union will be permitted to post notices on such designated bulletin board, regarding Union business or social activities, but no notices containing political, religious, racial or other controversial matters shall be permitted.

Section 5. Time off without pay will be granted by the company upon requests from the Union to have elected or appointed members attend conventions, progress meetings, seminars or Executive Board Meetings, as long as the employee can be released without adversely affecting the operation of the plant. Time granted should not exceed one (1) week in any single request and should not exceed four (4) weeks in any agreement year.

Section 6. A Representative of the Company and a Representative of the Union shall meet from time to time at the request of either party for the purpose of discussing any matter coming within the scope of this Agreement.

All meetings between a Representative of the Company and Representative of the Union shall be held on Company’s premises at a time mutually agreed to between the parties. When a meeting, within the scope of Article 7, Section 6, is requested by the Company, those employees whose attendance the Company agrees is essential shall be paid for their attendance at the meeting, at their normal straight time rate. Employees will be paid for regular scheduled hours lost from work for attending Contract Negotiations. It is understood that meetings associated with the Grievance and Arbitration procedure with the Company does not fall within the scope of this Section.

ARTICLE 8 UNION MEMBERSHIP

Union Security shall be in the form known as Maintenance of Membership therefore: (a) Employees within the bargaining unit holding job titles covered by Schedule A of this Agreement, who

have been continuously employed for nine (9) months and who were members of the Union on the date hereof shall as a condition of employment, maintain such membership for the duration of the Agreement.

(b) Employees who are not members on the date hereof and who have been continuously employed for nine (9) months but who subsequently become members shall, as a condition of employment, maintain membership for the duration of the Agreement.

ARTICLE 9 DEDUCTION OF UNION DUES

Section 1. The Company agrees to deduct regular monthly Union dues from the pay of employees who are or shall become Union members upon their written authorization on a form approved by the Company. Such authorization to be revocable at any time upon ten (10) days written notice given to the Company by the Union. This agreement to deduct Union dues shall not apply to initiation fees, special assessments or payments of any kind due the Union by the employee other than regular monthly Union dues uniformly assessed against all members of the Union.

Section 2. The deduction shall be made twice monthly as long as the payroll is prepared manually. Upon automation of the payroll, the deduction will be made weekly. If there should be insufficient pay due the employee after all other authorized deductions have been made, the Company shall be relieved of all obligations to deduct the

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Union dues for that period and the Company shall not be required to deduct in a subsequent pay period the dues which were not deducted earlier due to insufficient pay.

Section 3. The Company will forward monthly, the dues collected, along with a list of the employees on whose behalf the deductions are made, to the Financial Secretary of Local 37 authorized to receive such funds. The Union agrees to keep the Company advised by written notice of the Local Union Officer authorized to receive such funds.

Section 4. The Union agrees to certify to the Company the amount of regular monthly dues or any changes therein.

Section 5. The employer shall not be liable to the Union by reason of the requirements of this Agreement for the remittance or payment of any sum other than that authorized by the employee constituting actual deductions made from wages earned by the employee. In addition, the Union shall indemnify and save the employer harmless from any liability resulting from any and all claims, demands, suits or any other action arising from compliance with the Section.

ARTICLE 10 EMPLOYEES – DEFINED

Section 1. Employees shall be known as regular, probationary, or temporary.

Section 2. A “Regular Employee” is a person whose employment is reasonably expected to continue at the time he is engaged, has complied with all the Company’s standards for employment, and has completed a probationary period of nine (9) months.

Section 3. A “Probationary Employee” is a person who has been hired by the Company to fill a vacated or newly established regular position in the Company and has not yet completed nine (9) months of continuous employment with the Company.

The retention of a probationary employee is at the sole discretion of the Company, and termination of employment of such employee at any time prior to satisfactory completion of his nine (9) month probationary period shall not be subject to review through the grievance or arbitration procedure of this Agreement.

Section 4. A “Temporary Employee” is one who is engaged for a specific project, a limited period or seasonal employment, with the definite understanding that his employment is to terminate upon completion of the project or at the end of the period, and whose employment is expected to continue for not more than six (6) months. Temporary employees shall not be engaged where the effect would be to take any work from regular employees within the bargaining unit. Temporary employees shall have no rights or privileges under the terms of this Agreement.

ARTICLE 11 SENIORITY

Section 1. Seniority (net credited service) shall mean length of continuous service with the Company from the employee’s most recent date of hire.

Section 2. Continuous service shall be terminated when the employee:

(a) Voluntarily terminates his employment

(b) Is discharged for cause

(c) Absents himself beyond a period for which he has been granted a leave of absence

(d) Fails to return to work within ten (10) working days after being recalled from a lay-off

Section 3. The Company will prepare from its records a seniority list of all employees in the bargaining unit as of the date of execution of this Agreement. The list shall be posted (and updated by January 10th of each calendar year) on the Company bulletin boards for a period of thirty (30) days each calendar year, during which time the Union may question the accuracy of an employee’s position on the list. The list may not be challenged for the remainder of the year. Any question raised during the thirty (30) day period will be negotiated; and if no agreement can be reached with respect to the issues raised, the matter shall be subject to the grievance and arbitration procedure.

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ARTICLE 12 WAGE RATES

Section 1. The job classification and rates of pay which shall prevail during the term of this Agreement are set forth and contained in the Schedule of Classifications and Wages as Schedule A, attached hereto and considered in all respects to be part of this Agreement.

Section 2. The Company shall have the right to create additional classifications from time to time as the Company determines to be desirable or necessary. When the Company desires to create an additional classification within the bargaining unit, the Company will immediately notify the Union and enter in negotiations relative to the additional classification and wage rate or range of rates. When the additional classification or range of rates have been agreed upon, the agreement shall be reduced to written form, signed by the parties hereto and made a part hereof as an amendment to this Agreement. Thereafter, the additional classification shall be considered a part of Schedule A hereof.

Pending a completion of negotiations with respect to such wage rates or range of rates, the Company shall set a temporary rate and establish temporary working conditions. When the Company and the Union reach agreement on the new wage rate of range of rates for the additional classification, it shall be retroactive to the date when the classification was first temporarily established unless another date shall have been agreed upon.

ARTICLE 13 HOURS OF WORK

Section 1. General – For All Employees

(a) The regular workday shall be from midnight to the following midnight. The introduction and elimination of daylight savings time will not be considered as other than a normal day.

(b) When an employee has worked sixteen (16) consecutive hours he shall be entitled to an eight (8) hour rest period before returning to work.

If the rest period extends into the employee’s regularly scheduled day within his basic workweek he shall lose no time thereby.

(c) If an employee works beyond fourteen (14) consecutive hours, he will be paid at double (2x) his straight time rate for those hours worked in excess of fourteen (14).

Section 2. Non-shift Workers

(a) The normal workweek shall constitute forty (40) hours worked Monday through Friday and the normal workday shall constitute eight (8) hours worked.

The normal hours of the workday for day workers are from 7:30 to 4:00 p.m. with a thirty (30) minute unpaid lunch break.

(b) The Company reserves the right to alter normal hours and days on a straight time pay basis, however, the following premium will be paid for altered hours actually worked during hours that coincide with the second and third (night) shifts.

All hours worked on the second and third (night) shifts, that are paid on a straight time basis will be paid at 1.10 times straight time pay rate for the first five (5) workdays that coincide with the normal workdays for day workers. If twenty four (24) hours notice is not given, the first four altered hours worked will be paid at one and one-half (1-1/2) times the straight time rate. The remainder of the second and third (night) shifts worked during the remainder of the five (5) continuous normal workdays will be paid at 1.10 times the straight time pay rate. After the initial five (5) days (referenced above) of the altered hours assignment all remaining altered hours worked on the second and third (night shifts) that are paid on a straight time basis will be paid at 1.04 times straight time pay rate. Twenty four (24) hours notice shall be interpreted to mean twenty four (24) hours prior to the start of the altered work hours. The Company agrees to provide as much notice as possible prior to altering hours. In no case will an employee be required to revert back to normal hours without eight (8) hours rest and any time lost to accommodate the rest period shall be paid time.

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(c) It is understood that repairers who are qualified as operators may be assigned on a straight time pay basis to replace absent shift operating personnel during the day shift on days that fall within the repairers’ normal workweek and will alter their normal hours to coincide with the day shift work hours of 7 a.m. to 3 p.m.

It is understood that repairers who are qualified as operators may be assigned on a straight time pay basis to replace operating personnel absent from work for extended periods of one week or more.

(d) There shall be two (2) fifteen (15) minute paid “work breaks” per day provided to all non-shift workers, to be taken at the work site, one at mid-morning and one at mid-afternoon, of the workday.

The Company reserves the right to reschedule the “work break(s)” at any given time operational considerations require such action. It is understood that employees shall have no claim for the monetary equivalent of the “work break(s)” or time off should they be missed as a result of layoffs, holidays, vacations, illness or other forms of absences.

Section 3. Shift Workers

(a) For the purpose of this Agreement the shift workers’ workweek shall be from 12:01 a.m. on Sunday until 12:00 midnight on Saturday.

For the shift operation, the Company has established a regular schedule of working hours for the employees involved which includes shift revolution. These hours may be varied by mutual agreement by the Company and the Union as agreed to in April 30, 1987, Side Letter Agreement. Upon mutual agreement between them and the Company, employees who desire to trade full eight (8) hour shifts will be permitted to do so temporarily from time to time, provided such temporary interchange does not lead to or require the payment of overtime. Shift workers shall receive time and one-half for all hours worked in excess of eight (8) hours in any one day or forty (40) hours in one week, provided, however, that if a shift worker voluntarily works two shifts in a single day or consecutive shifts in connection with a work schedule which has been mutually agreed upon, straight time only shall be paid for the second shift. All shift workers will be scheduled to work a basic forty (40) hour workweek.

Section 4. Re-classification of Employees

(a) The Union and the Company hereby agree to the following definitions and rules governing the re-classification of the employees at the Tinker Hydroelectric Station.

(1) Definitions:

• Re-classification is the transfer of any and all employees between work classifications within the Plant in accordance with Article 3 of the Union Contract. It is the Company’s intention that when a re-classification is required, it would be for a period of seven days or more.

• Re-assignment is the transfer of any and all employees between work classifications for a period of less than seven days.

• Transition weeks are the first and the last week of a re-classification period beginning at the notification of the re-classification and continuing for the next seven calendar days.

(b) It is agreed that the Company has the right to transfer any and all employees between work classifications within the Plant and under Article 3 of the Union Contract. It is understood that any duplication of benefits is without prejudice and Article 19 of the Union Contract remains in effect. Any re-classification of employees shall be clearly communicated by the Company to the affected employee(s) as to the date and time of the re-classification. The Company will strive to give employees a 24-hour notice of their re-classification.

When an employee is required to operate and is re-assigned, that employee shall receive overtime in accordance with Article 12, Section 2.

(c) When a re-classification is required, the re-classified employee(s), who are scheduled for a transition week that provides less pay than their normal weeks pay, shall be offered additional hours of work during those weeks, in increments of whole hours of work during those weeks, in increments of whole hours, so as to accumulate, at a minimum, pay equal to their normal weeks pay as if re-classification had not occurred. “The rate of pay for the hours worked during the transition weeks or any portion thereof, shall be at 1.5X the normal rate of pay.

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(d) When a re-classification is required:

(1) Those employees that are scheduled to begin the first shift of the re-classification shall be allowed the previous workday off with eight hours pay at their normal straight time rate. This does not apply if the day before the re-classification is a scheduled day off, such as Saturday. This assumes that the Company is able to anticipate the river flow increasing at least 24 hours prior to the need for the re-classification.

(2) When an employee works more than 40 hours in one week, all hours above 40 hours will be paid at 1.5x the normal rate of pay.

Pursuant to the signing of this agreement, any and all side letters of agreement should be considered null and void, unless specifically referred to by this agreement.

Section 5. See Schedule B for Lead Worker Classification.

ARTICLE 14 SUPERVISORS WORKING

Section 1. The Union recognizes the right of the Company to its exclusive choice in its selection of management personnel (as interpreted by the Industrial Relations Act).

Section 2. The Company agrees that management personnel shall not normally perform work on bargaining unit jobs where the effect is to deny an employee work to which he would otherwise be entitled.

Section 3. It is understood that supervisors may displace or replace regular employees of the bargaining unit where such work arises:

(1) To instruct or train employees

(2) To assure proper standards of work and job performance

(3) To temporarily cover for absentees or other employee changes, which may necessitate short “fill-ins”

(4) To avoid interruption of necessary services

(5) To protect the safety of employees and equipment

Section 4. The driving of vehicles by a supervisor shall not be considered as a “supervisor working”.

ARTICLE 15 ASSIGNMENT OF WORK

Section 1. Notwithstanding any other provision of this Agreement; in the event no work is available in an employee’s classification and with the intent of providing continuity of employment; the Company may assign to an employee in any classification work which is not normally performed by the employees in such classification wherever reasonable to do so and practical for the purpose of efficient operations. An employee shall accept such work, which shall be assigned to him, and if he shall diligently and to the best of his ability endeavor to perform it, he shall not be disciplined or laid off for his inability to perform such work outside his classification.

Section 2. An employee assigned to replace a supervisor for a temporary period in excess of one (1) hour shall receive not less than the highest straight-time hourly rate of the employees he is required to supervise in addition to a premium of sixty ($.60) cents per hour for the period of that assignment. Such premium shall be considered as part of the regular straight-time rate for the purpose of computing overtime pay, but shall not be considered in computing any other benefit under this Agreement for hours not worked, including vacation and termination pay.

ARTICLE 16 OVERTIME COMPENSATION

Section 1. Overtime work is defined as time worked outside an employee’s established working schedule, or time worked beyond forty (40) straight time hours in any one (1) workweek, or time worked beyond eight (8) consecutive straight time hours in any one (1) workday.

Section 2. Double time shall be paid for all overtime work performed on the employee’s Sunday, and time and one-half (1-1/2) shall be paid for all other time worked outside of regularly assigned hours of work of the employee.

A shift worker required to work on his third consecutive scheduled day off shall be paid at the double time rate.

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In each workweek of a shift worker, the first day off shall be considered the employee’s Saturday and the second day off shall be considered his Sunday. Overtime pay will be paid for all overtime work, and will be computed to the next higher quarter-hour. For example, twenty-five (25) minutes total overtime will be computed as one-half (1/2) of an hour.

Section 3. There will be no pyramiding of overtime or premium pay. Time worked will be paid for at only one overtime or premium pay.

Section 4. The Company shall have the right to require reasonable assignments of overtime work.

Section 5. It is the policy of the Company to adjust the size of its workforce and schedule said forces in such a manner as to keep the necessity for overtime to a minimum. When overtime is required, the Company will distribute such work among the employees within a classification qualified to perform the work, as equitably as is reasonable and practicable.

The order of scheduled and call-out overtime assignments for replacement of operators shall be as follows: (1) Assign operator on day off

(2) Assign repairers – (qualified as operator) on an overtime equalization basis

(3) Assign on duty operators to work 12-hours shifts, i.e.: One operator work over 4-hours, other operator coming 4-hours early

(4) Assign on duty operator to work double shift

Section 6. Due to the nature of hydro plant operation the necessity for overtime assignments inherently peaks from time to time, due to such things as high water conditions, ice flows, major maintenance jobs, employee absenteeism, etc. During these peak overtime periods, employees shall be expected to respond to calls for such overtime assignments. Employees required to standby during off duty hours shall be eligible for standby pay in accordance with Article 17.

Section 7. Employees who have worked overtime shall not be required to take time off without pay on a regular scheduled workday.

Section 8. By mutual agreement, a banked overtime system was implemented. The terms of the agreement are as follows:

(a) Employees may elect not to receive pay for overtime worked and have such overtime hours credited, at premium rates, to bank for time off at a later date.

(b) Day workers may accumulate up to forty (40) hours with a maximum accumulation of eighty (80) hours in any calendar year.

(c) Shift workers may bank up to forty (40) hours in any calendar year. Also, shift workers will have to be replaced by other shift workers.

(d) Time put into the bank and taken out of the bank will be in full hour increments.

(e) Unused bank time credits at year-end will be canceled by payment.

(f) The supervisor must approve any time off to be taken. Time off during spring runoff will not be permitted. The employee must give reasonable notice in advance of the time off.

(g) Requests for banked time off and unscheduled vacation will be given the same consideration. The requests will be handled on a first come first serve basis.

(h) The implementation of banked overtime shall not incur additional costs to the Company.

ARTICLE 17 STANDBY

Section 1. Employees required to standby during off duty hours shall be paid two (2) hours pay at base rate for each day he is required to standby.

Section 2. Employees assigned to standby will be supplied with a pager or cellular telephone. A Company vehicle, if available, will be used on a voluntary basis for transportation from the Tinker Plan to standby employee’s home of residence only. Standby consists of remaining in the local area within reach of a local telephone, pager or

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cellular telephone call so that the employee on standby may be notified to report to work, in a reasonable amount of time, for an overtime work assignment.

Section 3. Standby employees called out during any standby day shall be paid no more than one minimum call-out premium of two (2) hours pay at time and one-half, or actual hours worked, whichever is greater in addition to standby pay. This minimum shall not apply where the call-out is within two hours of the start of his regular period of work.

Section 4. A standby day is defined as any period commencing after an employee’s last workday and terminating with his next workday, except for days off, weekends, and holidays which shall be calculated on the basis of each twenty-four (24) hour period starting with the end of his last scheduled workday.

ARTICLE 18 CALL-OUT

Section 1. An hourly rated employee who has left the Company premises after his regular duty, and thereafter, upon call from the Company returns for emergency work, shall receive not less than an amount equal to two (2) hours pay at time and one-half rate. When the time of the call-out is after midnight, the employee shall receive four (4) hours pay at time and one-half. These minimums shall not apply where the call-out is within one (1) hour of the start of his regular period of work. It is further understood that whenever more than one (1) call-out occurs within the same guarantee period, only one (1) minimum guarantee will be paid.

Section 2. Employees who are called out subsequent to the initial guarantee period will be paid an additional amount equal to two (2) hours pay at time and one-half (1/2) for each subsequent call-out providing that any subsequent call-out period does not overlap with the previous call-out period and does not fall within one (1) hour of the employees regularly scheduled working hours.

Section 3. It is not the intent of the Company, to assign routine, mundane tasks to employees called out for emergency or urgent work requirements, simply for the purpose of working the remainder of the call-out guarantee period, once the emergency or urgent work is completed. However, the Company reserves the right to determine what work is to be considered emergency and/or urgent.

ARTICLE 19 NON-DUPLICATION OF BENEFITS

Section 1. No employee shall receive more than the single highest rate of pay set forth in any provision of this Agreement which is applicable to any work performed or service rendered by any employee and in no event shall there be any duplication or pyramiding of any two or more of the benefits provided in this Agreement for work performed or service rendered.

ARTICLE 20 MEAL DURING UNSCHEDULED OVERTIME

Section 1. The Company and Union agreed to eliminate all of the existing meal allowance language and convert the liability to a $.23/hour base rate pay increase as part of these 2007 negotiations. It is understood that when an employee is required to work an unscheduled substantial amount of time prior to the start of their regularly scheduled shift or stay a substantial amount of time beyond the regularly scheduled quitting time, the employee will be allowed to ascertain a meal and consume it in the shortest time possible at no loss of pay to the employee for time spent consuming the meal. In the event an employee is called out on a scheduled day off and the amount of time spent on the call-out creates a situation where it is reasonable for the employee to consume a meal the employee will be allowed to ascertain a meal and consume it in the shortest time possible at no loss of pay to the employee for time spent consuming the meal. In all events the employee is responsible for the cost of the meal.

ARTICLE 21 VACATIONS

Section 1. The following procedure has been established for all regular full-time employees of the Company. These procedures providing for the accrual of vacation credit will govern vacation for active employees and pay in lieu of vacation for terminating employees.

In computing the basic vacation credit, (a) vacation time up to ten (10) workdays shall be excluded from paid employment for the purpose of vacation accrual and (b) fractions of a day of less than one-half (1/2) shall be disregarded; of one-half (1/2) or more shall be counted as a day.

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The terms paid employment or continuous paid employment for vacation accrual purposes shall include any day the employee was compensated in any amount through the Company payroll. Rule a – Basic Vacation Credit Employees shall have accrued to their credit and shall be entitled to receive in the following calendar year one workday of the paid vacation for each 5 weeks of their paid employment during each twelve (12) month period commencing January 1. This provides 10 workdays of vacation to employees with continuous paid employment throughout the period January 1 to December 31, inclusive. Except for special provisions for the 6th, 7th, 15th and 20th anniversary years covered in Rules b, c, and d. December 31 will be the determination date to fix entitlement for vacations to be taken in the following calendar year. Rule b – Effective 1-1-88 – Vacation Credit for Employees With Six (6) Years or More of Continuous Employment An employee who completes six (6) years of continuous paid employment during the calendar year 1988 or a succeeding calendar year shall be entitled to receive in that calendar year fifteen (15) paid workdays of vacation. An employee who completes his seventh through fourteenth year of continuous paid employment will be entitled to one and one-half (1-1/2) workdays of paid vacation for each five (5) weeks of paid employment during the previous calendar year. This will entitle him up to fifteen (15) days of paid vacation. Rule c – Vacation Credit for Employees With Fourteen (14) Years or More of Continuous Employment An employee who completes fourteen (14) years of continuous paid employment during the calendar year 1995 or a succeeding calendar year shall be entitled to receive and that calendar year twenty (20) paid workdays of vacation. An employee who completes his fifteenth through nineteenth year of continuous paid employment will be entitled to two (2) workdays of paid vacation for each five (5) weeks of paid employment during the previous year. This will entitle him up to twenty (20) days of paid vacation. Rule d – Vacation Credit for Employees With Twenty (20) Years or More of Continuous Employment An employee who completes twenty (20) years of continuous paid employment during the calendar year 1980 or a succeeding calendar year shall be entitled to receive in that calendar year twenty-five (25) paid workdays of vacation. Rule e – Vacation Credit for Employees With Twenty Seven (27) Years or More of Continuous Employment An employee who completes twenty seven (27) years of continuous paid employment shall be entitled to receive in that calendar year thirty (30) paid workdays of vacation. Rule f – Vacation Settlement for Terminating Employees In the event any employee covered by Rules a, b, c, or d, above, leaves the employ of the Company for any reason (including death), the employee shall be entitled to receive pay in lieu of vacation in the amount of unused vacation credit accrued for the benefit of such employee to the date of separation. Rule g – Special Vacation Provisions for Employees With Less Than One Year’s Service by December 31 Employees in employment on any January 1, who have had less than one (1) year’s service, shall be entitled to paid vacation time as determined by Rule a under this Article. Short service employees within the category of Rule f, whose employment terminates prior to the January 1 following their hiring date, shall, upon separation for any reason (including death), be entitled to receive pay in lieu of vacation equal to the unused credit accrued for their benefit to date of separation. Rule h – General Procedures Section 1. To the extent deemed practical by the Company, employees shall be permitted to take their vacations when desired, but the Company has the right to schedule vacations so as to best suit its orderly operations. The seniority of employees will be considered when scheduling vacations. Generally speaking departmental employees entitled to three (3), four (4), or five (5) weeks’ vacation may not schedule the three (3), four (4), or five (5) weeks consecutively if by so doing the last week, two (2) weeks, or three (3) weeks, of such scheduling interferes with the first two (2) weeks vacation request of some other employee within the department. Split vacations other than stated above require advance approval by the department head. Employees normally classified as shift workers may split one (1) week (5 days), and employees normally classified as non-shift workers may split three (3) weeks (15 days) of their total vacation for the year, by days, providing such arrangements are approved in advance by the Superintendent. The remainder of the vacation must be taken in full weeks excepting extra days in lieu of holidays occurring during regular vacation periods. Split vacation days will be placed on the schedule, conditions permitting,

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but may not displace any full week vacation. In the event of other bargaining unit employees absences from work, vacations may be limited or cancelled in order to meet operational requirements. Up to two (2) weeks of an employee’s vacation allowance may be carried over into the following year provided the total carry-over is taken in full in that year, and that the total absence from work will not exceed four (4) consecutive weeks. In scheduling carry-over vacation of more than one eligible employee, consideration will be given on the basis of employee seniority and the operating requirement of the Company. Vacation pay shall be at the employee’s straight-time rate at the time the vacation is taken or separation occurs. If the Company deems it necessary to cancel an employee’s vacation, the Company agrees to reimburse the employee for lost expenses incurred. Such lost expenses may include penalties applied to change airline tickets, vacation packages, etc. In instances where there are no provisions to reuse and/or reschedule with penalties or provisions such as concert tickets, the Company will reimburse the employee to the level of indemnity. All reimbursements are subject to proper documentation. The employee must advise the person making the decision to have the employee report to work they would have been on vacation or the reimbursement provisions are relinquished.

Section 2. With at least 48 hours advance notice vacation pay may be obtained by employees at the start of their vacation rather than being paid upon their return.

Section 3. The above rules are subject to the provision that no present employee shall be deprived of any vacation to which he would have become entitled under any policy heretofore in effect.

ARTICLE 22 HOLIDAYS

Section 1. It shall be the policy of the Company to permit as many employees as practicable to be off duty on the holidays observed by the Company. The number and choice of employees required to work on the holiday shall be determined by the Company.

Section 2. Except as stated in Section Four (4) of this Article, hourly rated employees on the regular payroll shall receive their normal straight-time pay for holidays whether or not they are celebrated on their normal scheduled workdays; and when they are assigned work on a holiday they shall also receive, in addition to such holiday pay, pay at the rate of double time (2x) straight-time pay for all hours worked on such day.

Section 3. The following days only are considered as guaranteed holidays under this Article:

New Year’s Day January 1 Good Friday Friday Before Easter Victoria Day Monday Preceding May 25 Dominion Day July 1 New Brunswick Day First Monday in August Labor Day First Monday in September Thanksgiving Day Second Monday in October Day after Thanksgiving Second Tuesday in October Remembrance Day November 11 Christmas Day December 25 Boxing Day December 26

Section 4. Holiday pay will not be paid where the employee is not on the active payroll in the week the holiday is observed, or where the employee, on his own account, has taken his next regular workday off prior to the holiday, or, on his own account, has taken his next regular workday off after the holiday. Except as may be specifically qualified elsewhere in this Agreement, holiday pay will be paid provided an employee works his scheduled hours in the week the holiday falls or is excused for legitimate illness or other reason acceptable to the Company. If a holiday is observed on Monday through Friday or within the employees’ regularly scheduled workweek during his scheduled vacation period, he shall receive an additional day off with normal straight-time pay on the following Monday or other time to be designated by the Company, or receive holiday pay in lieu thereof at the Company’s discretion.

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Section 5. If a holiday occurs during a period when an employee is on sickness or accident leave and is subject to payments by the Company’s Short Term Disability Plan or payments by the Company supplementing Workers’ Compensation, the employee will not receive additional compensation, but will be eligible for holiday pay up to the employee’s straight-time pay for that day.

An employee receiving long-term disability benefits would not be eligible for holiday pay during the period of such disability.

Section 6. With the exception of shift workers, when a holiday falls on Sunday, Monday will be the day observed under this Article. When the holiday falls on Saturday, Friday will be the day observed under this Article. For shift workers, when the holiday falls on a Saturday or Sunday, that will be the actual day the holiday is observed. When a holiday falls on any other day, that day will be the day observed. Operation of this Section shall not serve to avoid eligibility of any employee to receive time off or payment for any of the holidays guaranteed under this Article.

ARTICLE 23 FUNERAL LEAVE

Section 1. Funeral leave from normal scheduled work (straight-time work) for full-time regular hourly employees is as follows:

In the event of death in the immediate family, an employee shall be allowed time off with pay for a period not to exceed three (3) consecutive calendar days. Such time off shall begin not earlier than the date of the death and end on the day following the date of the funeral. The immediate family is defined as spouse, children, mother, father, brother or sister, mother-in-law, father-in-law and any person living in the employee’s household and regarded as a member of the family.

Section 2. Funeral leave shall be without duplication of any other benefit.

Section 3. Regular employees shall be allowed up to one (1) day off from regular scheduled duty with pay in the event of the death of the grandparents, grandchildren or aunts and uncles, of either the employee or his spouse and will be allowed up to one (1) day off from regular scheduled duty with pay in the event of the death of the brother or sister of the spouse for the purpose of attending the funeral.

Regular employees shall be allowed up to one (1) day off from regular scheduled duty with pay when requested to function as active pallbearers at the funeral of any employee or retiree.

ARTICLE 24 JURY DUTY

Section 1. When an employee receives jury notice, he shall promptly notify his supervisor. When an employee is called for jury service, he shall be paid his regular straight-time wage rate for time lost from regular working hours, less any fees, excluding mileage allowance, received from such jury duty. An employee shall keep the Company advised daily during such service.

Section 2. An employee shall report for a partial day’s work if released from jury duty before or at noon if he desires to receive the difference in pay.

Section 3. When an employee is excused from jury duty for one (1) or more days during the period of the jury service, he shall immediately notify his supervisor so arrangements can be made for him to return to work.

Section 4. An employee absent from his duties to appear in court as a witness under subpoena, shall be allowed such time off as is necessary to fulfill those duties as a witness without loss of basic pay.

ARTICLE 25 CLOTHING/TOOLS

Section 1. The Company shall determine what tools are required for the job and shall supply or make them available and shall replace such of these tools, as in its judgment, become obsolete or worn out. Each employee shall be responsible for tools assigned to him.

Section 2. The Company agrees to provide rain suits, replacement work gloves, coveralls, and hip boots or waders, when required to perform the job function.

Section 3. All employees while on duty at the Tinker generating facility are required to wear safety footwear that conforms to CSA-Z195-M92 (or equivalent) as specified in Regulation 40 of the Canadian General Regulatory Occupational Health and Safety Act. The Company will pay up to $250.00 every two-agreement years upon

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receiving proof of purchase from the employee. This is an accumulative benefit during the two (2) year period for expenditures beginning on the inception date of the Collective Bargaining Agreement. The unused benefit does not carry over accumulatively to the next two (2) year period.

ARTICLE 26 SICKNESS AND ACCIDENT BENEFITS

Section 1. On-The-Job Injuries

The Company carries Workers’ Compensation insurance as protection for employees under the Province of New Brunswick Workers’ Compensation Act.

(a) Effective January 1, 1995, an employee injured on the job shall receive the difference between his or her regular net pay and the total amount that is received from any other pension or compensation related to the injury for a period of up to three working days. After the initial three working days, an employee will be subject to a three-day waiting period without any employment-related remuneration before they will be eligible to receive their Worker’s Compensation benefit.

(b) After the three-day waiting period, the Company will pay any fulltime regular employee who is totally incapacitated for work under such circumstances as to entitle the employee to benefits provided in the Workers’ Compensation Act, the difference between the payments therein provided for such incapacity and eighty-five percent of the employee’s pre-accident net earnings as calculated by the Workplace Health, Safety and Compensation Commission (WHSCC), for a number of weeks equal to the total number of years such employee has been in continuous service up to a maximum of twenty-six weeks with a minimum of five weeks. In all cases where payments made to an employee for such incapacity under the Workers’ Compensation Act are discontinued with the consent of the WHSCC, all obligations of the Company arising under this Section shall thereupon cease.

(c) For any payroll period during which an employee is injured on the job and the above conditions of this Article for supplemental or top-up payments by the Company are met, the following procedure will apply:

To assist a disabled employee through a possible delay in the receipt of Workers’ Compensation benefits and to eliminate confusion as to the amount of such benefits, the Company, during periods when an employee is entitled to payment by the Company for the difference between the Workers’ Compensation benefit payments and eighty-five percent of the employee’s pre-accident net earnings as calculated by the WHSCC issue a payroll check to the employee for eighty-five percent of the employee’s pre-accident net earnings for the period of disability falling within the payroll period, less normal tax and other deductions, just as though the employee had worked straight time during that payroll period.

Upon receipt of the Worker’s Compensation check(s) (representing amounts advanced by the Company) such check(s) will be endorsed over the Company by the employee. The Company will deduct the amount of these Workers’ Compensation check(s) from the employee’s taxable earnings.

(d) In the event that there are any changes to the Workers’ Compensation Act subsequent to the execution of this document, which allow additional top-up and/or reinstatement of the first three days of benefits without penalty to the Employer, this Article of the Agreement will be amended to reflect the changes to the Act.

Section 2. Weekly Disability Benefits for Non-Job Connected Injury or Illness

The Company provides payments of 60% of an hourly rated employee’s basic weekly earnings (up to the benefit level, as adjusted from time to time by Employment and Immigration Canada, required to qualify for a premium reduction as provided under paragraph 61(c) of the Unemployment Insurance Act and Paragraph 19(d) of the Unemployment Insurance regulations) for a maximum of twenty-six (26) weeks during any one disability resulting from a non-occupational bodily injury or disease. As a supplement, the Company will also pay the difference between such payments and the employee’s base weekly wage for up to four weeks of disability occurring in each calendar six (6) month period beginning January 1 and July 1. Employees can use the sick time benefit for base wages during a short-term illness of two (2) weeks or less, and/or medical and dental appointments.

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ARTICLE 27 PENSION – INSURANCE

Section 1. The Company hopes and expects to continue the present defined contribution type Pension Plan and Insurance Plans indefinitely, and every effort has been made to arrange the Plans so that they will meet future conditions insofar as they can be foreseen. In order to protect the Company against unforeseen conditions, however, the right to change the Plans (including the right to change the Insurance Companies or to continue the Pension Plan with a Trustee) is necessarily reserved by the Company.

Section 2. No change in the present Pension and Insurance Plans will be made, during the term of this Agreement, without the consent of the Union if the effect will be to reduce employee rights or benefits under the Plans.

Section 3. During the term of this Agreement, the Company agrees to contribute to the Defined Contribution Pension Plan, an annual amount equal to 7.5% of the participant’s gross earnings. For the purposes of this Article, earnings means, with respect to any participant, regular basic compensation received from the employer as an employee, including overtime, and other payroll compensation described in this agreement.

Section 4. Stock Investment Plan (SIP) – see Schedule A.

Section 5. To become covered under the Plan, a probationary employee shall become a Union member at the end of their first 30 days of employment. The Company and Union agree to an 85% Company share and a 15% Union share, for the first two (2) contract years, of established premiums by the provider (for purposes of this Agreement, the medical plan provider is Benefit Plan Administrators Consulting, herein referred to as BPA). The Union’s share will increase by 1.5%/year for years 3, 4 and 5 of the Collective Bargaining Agreement. Premium shares will be as follows:

• Year 3 – Company share 83.5 – Union share 16.5 • Year 4 – Company share 82 – Union share 18 • Year 5 – Company share 80.5 – Union 19.5

Section 6. Dental Benefits - The dental benefits are directly connected to the medical plan covered under BPA, but are not a part of the BPA plan. If for any reason the medical plan under BPA is discontinued, the terms and conditions as outlined under this section will also be discontinued. If changes in the medical plan occur it may result in changes to the benefit levels in the dental benefits as assigned today for additional expenses incurred in the medical plan.

Pursuant to the previous paragraph the Company agrees to reimburse up to $1000.00/year per employee per family annually for submitted dental expenses. This benefit will be administered through a third party.

Section 7. Retiree Death Benefit - Upon retirement current employees will receive a $7000 death benefit (life insurance).

ARTICLE 28 PERSONAL LEAVE OF ABSENCE

Section 1. An employee may be granted up to 60 consecutive calendar days off without pay from his regular duties for approved personal reasons. He must request such time off through his department head as far in advance as the situation will permit, stating for the request and the exact period of absence required.

The employee may not engage in other gainful employment during the authorized period of absence. Loss of pay as a result of the employee’s authorized absence cannot be offset at the regular or overtime rate by Company work outside regular hours. Absence for personal reasons for more than five consecutive regular workdays will require an advance written request and approval by an officer of the Company. All conditions set forth above for time off for personal reasons will apply to such leave of absence.

ARTICLE 29 POSTING AND PROMOTIONS

Section 1.

(a) When a vacancy job new job occurs in any classification covered under this Agreement, the Company shall post the job opening on the bulletin board for a period of ten (10) working days. The Company will accept bids of employees for such vacancies during the posting period if they are presented in writing, and include a statement of the qualification of the applicant and further provide that such applications are filed within the posting period.

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(b) It is understood that it is the Company’s intent to fill these vacancies with the best qualified applicant, and the qualifications to be considered are education, ability, and knowledge of the job being filled.

(c) Seniority (net credited service) shall become a consideration and shall govern in the award of the opening in the event there are no differences in the qualifications (listed in Section (b)) of two (2) or more applicants.

(d) If no qualified applicant is found among those bidding for the vacancy, the Company shall have the right to fill the vacancy from any source.

ARTICLE 30 SAFETY

Section 1. The safety of the employees is a matter of paramount importance, and shall receive first consideration. No employee shall be allowed or required to take any undue risk in the performance of his duties which he or his foreman or supervisor considers unsafe to himself or to his fellow workers. All employees will be held responsible for the enforcement of safe working rules.

Section 2. When new equipment is introduced, employees who will be required to maintain, operate or install the equipment shall be trained in its use and maintenance.

Section 3. In conformance with good safety practices, all employees shall wear required safety equipment at all times when actively engaged in work other than when being transported by Company vehicle or at mealtime.

Those employees directed to wear safety helmets, hard hats or other required safety equipment, will do so at all times. Failure of any such employee to abide by this rule will be cause for disciplinary action.

Section 4. The Company shall furnish all required safety equipment and the employees receiving such equipment shall be held responsible for their condition; reasonable wear, loss and damage excepted.

Section 5. An employee working alone may request assistance if the trouble cannot be repaired safely and adequately by a single person. The employee requesting assistance shall first receive authorization for the assistance from his supervisor, or the Plant Superintendent. If the supervisor, or Plant Superintendent cannot be reached (either at work or at home) the employee may, at his own discretion make the arrangement for the necessary assistance.

Section 6. The Company will replace the personal clothing of an employee that has been destroyed beyond reasonable repair by accident arising out of and in the course of his employment in the plant not caused by the carelessness of the employee. It is not contemplated that the Company will reimburse employees for clothing worn out by normal wear and tear or by exposure to conditions or material nor to their job. Each case will be considered on the basis of the circumstances surrounding it.

Section 7. The Company shall provide necessary apron, gloves and face protector for employees engaged in any type of welding. The use of such equipment shall be required and used by employees engaged in such activity.

Section 8. The Company agrees to provide the Union with a copy of the first report of any personal injury that requires medical attention.

Section 9. The Company agrees to coordinate and meet at least once per calendar year with safety professionals, plant employees, and Union leadership.

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ARTICLE 31 INCLEMENT WEATHER

Section 1. Company supervisors shall be responsible for determining whether weather conditions warrant cessation of outside work. In arriving at a decision with respect to weather conditions, the supervisor shall take into account such factors as:

(1) Employee safety

(2) Undue hazards

(3) Job site working conditions

(4) Anticipated duration of time required to leave unfinished job in a safe condition

(5) Operating requirements

(6) Service to the public

(7) Anticipated duration of inclement weather

ARTICLE 32 EMPLOYEE SECURITY

Section 1. If a regular full-time employee below retirement age becomes unable to perform fully the duties of his job due to:

(a) advanced age or other natural causes,

(b) or an industrial accident with the Company,

it is the policy of the Company to transfer him to another classification if in the Company’s judgment there is an opening existing in such classification and he can do the work therein safely and efficiently.

Section 2. Should the Company be unable to find any opening within its operations to utilize the services of such employee, the employee shall receive payment in accordance with Article 33, Section 2.

Section 3. The Company may require an employee to have an examination by a Company-appointed physician at any time. The Company shall bear the cost of this examination. Should the finding of employee’s physician be in conflict with the finding of the Company-appointed physician, then the parties shall mutually select a third impartial physician, whose costs will be equally divided amongst the parties, whose finding shall be final and binding an not subject to grievance.

ARTICLE 33 TERMINATION – LAY-OFF AND RECALL

Section 1. I f it becomes necessary in the judgment of the Company to terminate or lay off employees, “Temporary” employees and “Probationary” employees doing bargaining unit work shall be laid off first, the “Regular” employees shall be laid off in the inverse order of seniority.

Section 2. Should it become necessary to terminate or lay off employees due to lack of work, or because the job has been eliminated, the following termination payment rule will apply:

All regular employees who have completed one (1) year or more continuous service will receive two (2) weeks pay at their current base hourly rate for each year of such continuous service with the Company, not to exceed 50 weeks. A partial year of service shall be prorated. This payment would be in addition to any unused vacation and any vested interests due under the Company

Pension Plan or any other benefit to which the employee may be entitled. The foregoing termination payment rule will not apply in cases of disciplinary discharges or voluntary

resignations.

Section 3. In rehiring after a lay-off, the Company agrees to offer re-employment, to the extent to which additional help is needed, to former employees in the inverse order in which such employees were laid off (a) provided, however, that the employee is qualified to perform the available work at the time the offer of employment is made and provided he is available to return to work within ten (10) days and (b) provided, also, that the period of lay-off does not exceed one (1) year. An employee rehired within one year shall suffer no loss of seniority.

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ARTICLE 34 GRIEVANCE PROCEDURE

Section 1. For the purpose of this Agreement, a grievance is defined as a disagreement concerning the interpretation, application, or administration of the terms of this Agreement.

Section 2. Any grievance which may arise between the Union or any employee in the bargaining unit and the Company shall be settled in the following manner:

The Union will make a reasonable investigation of any complaint before it is reduced to the formality of a written grievance, in order to ascertain that there is reasonable ground to believe that the claim is true in fact an that the complaint is justified. The grievance complaint shall set forth all the facts necessary to understand the issues involved and specify the Article and Section violated, as well as the relief requested. The procedures shall be as follows: Step 1. Any employee or group of employees having a grievance an desiring to present the same shall first present the grievance with his or their steward, to his or their immediate management representative within ten (10) working days after the event giving rise to the grievance or the event first becomes known to the employees. In the event that the regular management representative is not available, then the grievance will be presented to the next higher level of management. The supervisor and the person or persons presenting the grievance will discuss the attempt to adjust the matter. If they are unable to arrive at a satisfactory decision within five (5) working days as a result of such discussion and it is decided to proceed further, then: Step 2. The grievance shall be reduced to writing, signed by the party or parties affected, and one (1) copy thereof presented, within fifteen (15) working days after Step 1 above, to the supervisor or department head of the employee or employees affected who shall then arrange for a meeting between management and the Union representative to be held within fifteen (15) working days after the receipt of the written grievance. If a settlement of the grievance is not reached within ten (10) working days after such meeting, either party may submit the grievance to arbitration in accordance with Article 35. The time limits specified in Step 1, and Step 2 above may be extended by mutual agreement of the parties in writing.

ARTICLE 35 ARBITRATION

Section 1. This Agreement provides for the final and binding settlement by arbitration, without stoppage of work, of all differences between the Company and the Union, concerning its interpretation, application, administration or an alleged violation of the Agreement, including any question as to whether a matter is arbitrable.

Section 2. If a grievance is not settled in one of the steps of the grievance procedure, then by written notification of either party to the other, made within thirty (30) calendar days after Step 2 of the grievance procedure it shall be submitted to a three (3) person Board of Arbitration to be selected as set forth in Section 3, and if no notice for arbitration is submitted within thirty (30) calendar days the grievance shall be deemed abandoned. Either party may notify the other in wiring of its desire to submit the difference or allegation to arbitration and the notice shall contain the name of the person appointed to the arbitration board by the party giving the notice, the party to whom the notice is given shall, within five (5) days of receiving this notice, name the person whom it appoints to the arbitration board and shall advise the other party of the name of its appointee. The two appointees so selected shall, within five (5) days of the appointment of the second of them, appoint a third person who shall be the chairman.

Where the party receiving the notice fails to appoint a member of the arbitration board, or where the tow appointees of the parties fail to agree upon a chairman within the time limited, the Minister of Labour for New Brunswick, upon the request of a party to the agreement, shall appoint a member on behalf of the party failing to make an appointment, or shall appoint the third member, as the case may be, and, where the case requires, shall appoint both.

Section 3. The Board of Arbitration, so chosen, shall hold a hearing and decide the issue presented. The decision shall be in writing, shall set forth the basis for the decision and shall be signed by all members of the Board concurring therein. The decision of the majority of the Board shall be final and binding upons both parties for the duration of this Agreement and a copy (together with the signed opinion, if any, from a dissenting arbitrator) shall be delivered prompltly to each of the parties. If there is no majority, the decision of the Chairman shall be the decision of the Arbitration Board.

Section 4. No Board of Arbitration shall have the power to add to, or subtract from, or modify any of the terms of this Agreement, prescribe any remedy for a violation, or pass upon or decide any question except the grievance

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submitted to the Board in accordance witht eh foregoing provision. No award or decision of the Board of Arbitration shall be retroactive, for more than sixty (60) working days before the grievance was reduced to wirting as provided in the grievance procedure.

Section 5. Each party shall compensate the arbitrator chosed by it for the time spent and expenses incurred in the arbitration, and the parties shall share equally in paying the compensation and expenses of the third arbitrator.

Section 6. Except upon agreement of the parties, a Board of Arbitraiton shall not hear and decide more than one grievance at a sitting.

ARTICLE 36 TECHNOLOGICAL CHANGE

Section 1. As used in this Article, the term “technological change” shall mean changes in mechanical or technical processes that eliminate, modify or alter the functions performed by any employee subject to this Agreement to the extent it becomes necessary to either terminate that employee because of lack of work, or to permanently reduce the employee’s hours to a level below those worked by the employee as of the effective date of this Agreement.

Section 2. In the event that it becomes necessary to terminate an employee or reduce an employee’s hours as stated above because of technological change, the Company shall notify the affected employee, inwriting, of the termination or reduction in hours no less than four weeks prior to the termination or redcuction in hours. The notification shall state that the termination or reduction is due to a technological change, describe the nature of the change, tand explanin why the change requires the employee’s termination or reduction in hours. Termination or reduction in hours shall be applied in the inverse order of sweniority, where possible.

Section 3. Any employee terminated under this Article shall receive payment in accordance with Article 33, Section 2.

Section 4. Any employee who is terminated or whose hours are reduced pursuant to this Article shall, in the event that the Company deems it necessary to hire additional full-time employees, be offered that additional full-time employment as follows: (1) employees who have been terminated shall be offered the employment in accordance with Article 33, Section 3; and (2) if no terminated employees are available for the additional employment, employees whose hours have been reduced shall be offered the additional employment by seniority. This Section shall apply only if, (a) the employee is either qualified to perform the additional employment at the time the offer is made, or, in the Company’s determination, can, by virtue of education or experience, become qualified through training to perform the additional work within six months after the offer is made, (b) is available to begin performing the work within ten days after the offer is made and, (c) with respect to a terminated employee, has been terminated within one year of the date of the offer.

ARTICLE 37 TERM OF AGREEMENT

Section 1. This Agreement shall become effective 12:01 a.m., December 16, 2007 and shall remain in full force and effect until midnight December 25, 2010. It shall continue in effect from year to year thereafter, from January 1st of each year unless changed or terminated in the manner provided herein.

Section 2. Either party desiring to (a) change or (b) terminate this Agreement at the end of the final year of the term of the Agreement must notify the other of its desire by not less than two month’s notice given in writing by either party to the Agreement before the end of the final year of the term of the Agreement.

If notice of termination is given, this Agreement will terminate, December 31st of the year (unless another date is mutually agreed upon) and thereafter be of no force or effect. If a notice of desire to amend or change the Agreement is given as above provided, it shall specify the changes or amendments desired. Where a party to the Agreement gives notice to the other party to the Agreement, to terminate, amend or change the Agreement, the parties shall, within twenty days after the notice was given, or such further time as the parties may agree upon, meet and commence to bargain collectively and make every reasonable effort to conclude a renewal or revision of the Agreement or a new Agreement.

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SCHEDULE A

PART OF LABOR AGREEMENT

BETWEEN

WPS CANADA GENERATION

and

LOCAL UNION 37

of the

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS

A.F. of L.

C.I.O. – C.L.C.

Effective December 16, 2007 – December 25, 2010

General wage increase of 3% effective December 16, 2007



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SCHEDULE A – 2007

Job ClassificationRate ****Rate

Lead Worker***/Operator A** 23.70 23.94

Start End of 6mos ****RateRepairer/Electrician/Operator A** 22.31 23.45 23.69

Start End of 6mos 1 year 2 year ****RateRepairer/Operator A** 19.85 20.60 21.43 22.65 22.88

Repairer/Electrician and Operations Helper Start End of 6mos 1 year 2 year*17.90 18.97 20.17 21.91

Wage includes $.23/hour increase due to meal allowance elimination

**** Effective 12/16/2007, the Company and Union have agreed to a 1% rate increase for all current employees. See October 24, 2007 letter of agreement.

Employees shall normally be paid on Thursdays.* Effective upon assuming full duties of regular shift.

Tinker Plant Rate Schedule - Local No. 37 IBEW - 12/16/2007

** Effective upon assuming full duties of regular shift and successful completion of Company approved Switchboard Operators course. (Employees hired prior to April, 1985, shall be exempt from the requirement of successful completion of Company approved SwEffective 12/23/2002, the Company and Union have agreed to 1% gross pay to purchase stock through the WPSR Stock Investment Plan (SIP).

*** See Schedule B - Lead Worker Classification Agreement

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SCHEDULE A – 2008








Employees shall normally be paid on Thursdays.* Effective upon assuming full duties of regular shift.


Effective 12/23/2002, the Company and Union have agreed to 1% gross pay to purchase stock through the WPSR Stock Investment Plan (SIP).

** Effective upon assuming full duties of regular shift and successful completion of Company approved Switchboard Operators course. (Employees hired prior to April, 1985, shall be exempt from the requirement of successful completion of Company approved Sw


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SCHEDULE A – 2009









Employees shall normally be paid on Thursdays.* Effective upon assuming full duties of regular shift.** Effective upon assuming full duties of regular shift and successful completion of Company approved Switchboard Operators course. (Employees hired prior to April, 1985, shall be exempt from the requirement of successful completion of Company approved SwEffective 12/23/2002, the Company and Union have agreed to 1% gross pay to purchase stock through the WPSR Stock Investment Plan (SIP).


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SCHEDULE B - LEAD WORKER CLASSIFICATION

As per the February 5, 1996 Side Letter of Agreement the Company and the Union have agreed to establish the above classification at the Tinker Plant subject to the following:

1. Qualifications – The individual must be a fully qualified Repairer – 2 Year or Repairer Electrical. They should have the ability and desire to become a fully qualified Hydro Plant Operator A through on-the-job training and successfully complete the Switchboard Apprenticeship Course presently being provided by the New Brunswick Department of Labour and Manpower or other appropriate training course designated by the Company.

2. Duties and Responsibilities – Oversees and performs mechanical maintenance of generating units, dams, fishway, and associated facilities. This includes:

a. overseeing mechanical crew

b. overseeing upkeep of grounds and structures

c. overseeing the operation of the diesel generating unit

d. overseeing the mechanical maintenance of the Company vehicles at Tinker

e. maintaining any necessary technical records and reports, and

f. performing any other miscellaneous duties associated with the above.

3. Pay – See Schedule A.

4. Overtime Equalization – Individual will remain in the overtime equalization schedule on an equal basis with the other Repairers, but will not be eligible for operating overtime except when necessary to meet operational requirements.

5. Posting – The Company will post to fill this position, and any subsequent position vacated due to the filling of this positing, in accordance with Article 29 of the Contract.

6. Chain of Command – The Lead Worker, the Repairer Electrical and the Operators will report to the Plant Superintendent. In his absence, they shall report to the Manager of Production and Environmental.

7. Replacement – Any Repairer who is upgraded to Lead Worker to fill in for vacation, sickness, etc., will receive the Lead Worker rate of pay for the period of the upgrade. When any Repairer is temporarily assigned to fill in for the Lead Worker for a full week period, the Repairer will receive the Lead Worker rate of pay for all hours worked and for any holidays which are observed under this Agreement during the week, even though the holiday is observed on the Repairer’s scheduled day off.

Documents

Tinker Dam