AGREEMENT BWEEN DOMTAR INC. NAIRN CENTRE ...

A G R E E M E N T

B W E E N

DOMTAR INC. NAIRN CENTRE SAWMILL

(hereinafter referred to as the 'Company')

AND

COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION AND ITS LOCAL 31-X

(hereinafter referred to as the 'Union')

Covering the Period

September 1,2000 to August 31,2005

00960 (07)

Article I

Article II

Article 111

Article N

Article V

Article VI

Artkle VI1

Article VI11

Article IX

Article X

Artkle XI

Article XI1

Article XI11

Article Mv

Article XV

Article XVI

Artide XVII

ArtideXVIII . Article xD( . Article XX .

CONTENTS

Purpose ................................................................ 1

Pe tiod ................................................................... 1

Recognition and Jurisdiction ................................. 1

Rates and Classifications ....................................... 2

........................................ 3

Vacations With Pay ............................................... 4

Holidays With Pay ................................................. 5

Adjustment of Grievances ..................................... 7

No Strike - No Lockout .......................................... 9

Working Conditions ............................................... 9

Hours of Work ...................................................... -11

Seniority ................................................................ 14

Bulletin Boards ...................................................... 16

Health and Welfare ...................... : ........................ 16 14:Ol Weekly Indemnity ...................................... 17 14:02 Long Term Disability .................................. 17 14:03 Grwp Life Insurance ................................. 19 14:W Medical, Surgical, Drug

81 Hospital Care Plans ................................ 20 14:OS Dental Care Plan ........................................ 21 14:06 Vision Care Plan ......................................... 21 14:07 Benefits at Lay Off ..................................... 22

Pension Plan ............... ..................................... 22

Bereavement Pay .................................................. 24

Jury Duty ................................................................ LBave of Absence ................................................... 25

Severance Pay ...................................................... -25

Apprentkeshlp Plan .............................................. -26

Attkle XXI - Automation and Technological Change................. 29

Schedule "A" Trades Training - Schedule of Wage Rates ....................... 28

Schedule "B" Occupation codes, Rates, Dates ....................................... 30

Schedule "C" Union Seniority List. .......................................................... 32

Schedule "D" Letters of Understanding 1. Weekend Maintenance Schedule 2. Filling Job Postings re Article 12:07 3. Lay Off and Recall After Lay Off 4. floating Holidays 5. Coveralls 6. Disputed W.S.I.B. Claims 7. Weekly Indemnity 8. Meals 9. Electrical Maintenance

11. climatic Controts 12. HoursofWork 13. Overtime Distribution 14. Overtime Welding 15. Lumber Graders 16. Management of the Labour Pool 17. Management of Technological Change 18. Extended Production Schedule 19. Four Crew Maintenance Schedule 20. Job Groupings 21. SeverancePay 22. Special Downsizing Retirement Window

10. Posted Back-up Pasitions

38 40 41 42 43 44 45 46 47 48 49 50 51 !3 55 57 58 59 61 63 65 67

Schedule "E" General Information

I N D E X

Artkle Pa-

Adjustment of Grievances Apprenticeship Plan Automation Automation and Technological Change Benefits at Lay Off Bereavement Leave Bulletin Board Cali outs Climatic Controls Compassionate Leave Contracting Out Coveralls Dental Plan Disputed WSIB Claims Education Fund Eledrical Maintenance Exchange of Shifts Floating Holidays Grievance Procedure Hours of Work Job Postings Joint Health & Safety Committee Joint Health & Safety Conference Jurisdiction Jury Duty, Crown Witness, Subpoenaed Witness Leaves of Absence Letters of Understanding Life Insurance Long Term Disability Meals Membership New Job Classifications Pension Plan Period of Agreement Posted Back Up Positions Probationary Period Purpose of Agreement Recognition Safety Equipment and Apparel Semi-Private Hospital Care

VIII

XI1 )(XI m

xx

XVI MI1 XI

XVI I11 X m X

XI VI1

VI11 XI XI1 X X I11

XVII XVIII

XN XN

V N xv

I1

XI1 I I11 X

XN

7 26 16 29 22 24 16 13 49 24 1 11 21 44 9 47 12 42 7 11 40 9 10 1 25 25 25 37 19 17 46 3 2 22 1 48 15 1 1 10 20

I N D E X

Article P a x

Seniority Seniority Ranking Sevemnce Pay Shift Differential Shift Workers Schedule Statutory Holidays Trades T d s Trades Training - Schedule of Rates Union Membership Vacations With Pay Vision Care Pian Wage Schedule Weekend Maintenance Weekly Indemnity

XI1

xD( XI XI VI1 X

V V I XIV

XN

14 32 25 12 12 5 10

3 28

4 21 30 62 16

ARTICLE I - PURPOSE

1:Ol The purpose of this Agreement Is to secure for the Company and the Union the full benefits of orderly and !qal di& bargaining in resped to hows, wages and worWng conditbns as specifled In ArU& of this Agreement and to secure to the utmost extent pxslk, the saw and physkal welfare of the employees, m m y of o p t a b I s , qwl&y and quanw of w@i~I and pv&xUon ofpraperty. This Agreement moreover seeks tu provide for fd r and PBaCeful adjustments of all disputes that m y arise between the parties. It b mgnW as a duty of the parW hereto and of all emploVees to mcpemte fully, individually and cdkctively, fw theadvancement ofthe cunditbns set forth herein.

1:02 Thmughout this Agreement, use of the mamline gender shall be considered also to include the feminine.

ARTICLE I1 - PERIOD

201 The Company and the Union agree one with the other that they will abide by the Artides of this Agreement hom September 1: 2000 to August 31: 2005 indusive, and hwn year to year therealter unless either patty desires to change or terminate the bqeement in which case, the patty deslrlng the change or termination shaii notify the other patty, in writing, within ninety (W) days prior to August 31st of the particular year that such is its desire. Elther patty opening the A g m t in the manner praded above shall nobfy the other patty, in writing, as to the changes desired.

ARTICLE 111 - RECOGNITION AND JURISDICTION

3:Ol (a) The Company reagnlzes the Union as the de collective bargaining agent for all its employees emploVed by the Company on its opetations in Nairn Township.

Forthe purpose ofthis Artide, employeesshali be all those emploVed on the job classifcations set out on the Wage schedule attached to and f m i n g part of the Agreement including thwe who are engaged on job dassibtk~s whkh may be established and become part of the Wage Schedule during the term of the Agreement. This pwision exdudes: Shift Supervisor, persons a h the rank of Shift Supervisor, Scalers, Ofke Staff and Security kmnd.

391 (b) The employees of mbactors engaged on opeations of the Company In Nairn Township Jlail be considered employees within the terms of this Agreement, save and except the employees of conbactors and/or conbadws who are engaged to petfm aaajwlal spedd servkes not commonly perfwmed by empkyees mred ty the terms of this Agreement employees of mntractMs where such ccnbactors are engaged for the purpose of erecting strudures and where such mbactor is bound by an Agreement with a Union or Unions affiliated wlth a cenbal labour bod, covering such work. The Union will be aW at least two (2) weeks in advance of any Company pbns to "mbad out work" except in the case of a genuine emergency.

392 (a) Superviswy personnel, Relief p r o d m Supetvisw while repbdmg Pmd& Shift Supervisws, which indudes mntractws, whose employees are considered to be emplcyees under this Agreement, shall not ptfm wch which would m l l y be a fur&m of an employee in the job dassikations cover& by this Agreement, wept when insbucting employees and in cases of emergency which invdve p h w i danger to employees w danger to property. The Company further agrees that the Relief Production Supervisor will not be allowed to administer disciplinaIy action a5 per Attide 8:lL

3:02 (b) The Company will not mbact out repair and maintenance work which is mliy perf& by the maintenam aew, for whch the mill is equipped, fw which vews are availaMe and whch employees are capable of perforing. The Company agrees to pay the defined Union dues for all conbactws who perform work m l b perfoned by members of the bargaining unit as well as capital wwk pmjects on this 9te. Any conbadws employing the fdlowing bades; miihunghts, mechanics, elecb.ldans, carpentars and/or welders will be induded in this payment of Union dues.

3:03 It is agreed that Company operams shall not be interrupted as the result of any jurisdictional dispute that may arise between the Union and any other Union affiliated with the C.L.C. Q u e s h s of jurisdiction shall conform to the regulations mering such matters as fixed by the C.L.C. and the Company will not be asked to act upon any matter of j u r i s d i i between organizabs of the C.L.C.

ARTICLE N - RATES AND CLASSIFICATIONS

4:Ol The W w Schedule is attached hereto and forms a part of this Agreement.

4:02 If, during the life of this Agreement, a significant change in the jd, rmht occurs in any job claaificatim listed in the attached Wage schedule, the rate hereto shall be adjusted 4 negolations between the pa&. Upon failure to reach agreement, the matter may be referred to Stage Ill of the Grievance hocedure.

403 For pb dassificatbns not listed in the attached Wage schedule, the Company shall set a temporary wage rate. Where the Company has prior knowledge of the necessity for establishing a new job d a s s i h b , the Company will notih the Union, in writlng, at least hvo (2) weeks in advance, and if the Union requests, the Company will dixuss the appltcable rates and conditions ptiw to the commencement of the new job. Where drcumstam require immediate and unforeseen establishment of a new job dassification, the Company will notify the Union, in writing, immediateby.

and/w related occupations in the attached Wage Schedule. Any such rates will be based on comparison with the prevailing rate fw similar

2

After a thirty (30) day bial pet id any such rate or rates shall be negokted with the Un'bn and, after such agreement is reached, it shall then become a part of the Wage schedule and be attached thereto. It is understood that the thirty (30) day pe fd can be extended by mulual cwent of the partles. Upon failure to teach agreement on a rate OT rites, the matter may be referred to Stage U1 of the Grievance Rocedwe. Rates when established shall be retmctive to the date of establishment of the new pb dasslflcatlons.

The Company when combining job classifications covered by the Cdlective Agreement agree that the senlor employee@) d the jobs which have been combined shall receive first consideration and shall receive a baining period as described In Article 12:07(e),

ARTICLE V - UNION MEMBERSHIP

591 Any emphyee who is IWW a member in gaxl standlng or who becomes or is reinstated as a member of the Union shall, as a condition of mtlnued empbyyment maintaln such membership in good standing thwghwt the term of this Agreement. The Union shall be the sole judge as to whether an emploVee is a member in good standing and shall IWUQ the Company prompQ of any change in the standing of any swh employee.

502 (a) When hiring new employees, w b j a to the skill and aMlity of the applicants to petform the wwk required of them, the Company wiii give preference to Union members.

If Union members do not a m h,Company shall have the tight to employ non-Unlon help.

The CMpany agrees to advise the Union from time to time of its labour requirements.

5 0 2 (b) New emploVees shall make application to p i n the Union when first approwhed to do so by a duly authorized U n h offkial. The Company shall u p hiring, advise ail new emproveeS to report to the Finandal Secretary within ten (10) days of commendrg work Failure of an employee to amh with the mdit ims herein shall be cause for immediate termlnatlon d employment.

5:03 (a) The Company will deduct hwn all employees covered by the Cabour Agreement from monies due them and remt to the Union, initiation fees and/or weekly membership dues but not fines, assessments or other levies.

5:03 (b) CWw3ons so made will be remitted to the Union weekly, s a M remittme to be accompanied by itemized Ikts In alphabeticdl order, in duplicate, of n a w with Chrlstbn MM as payrdled. A cq)y of the list wjll be given by the Company to the Finandal Secteby of the Union or his representatre.

5:03 (c) Yearly Unbn dues deductiW will be shown on the T-4 dips,

5:M Union representatives shall have the right to visit the operation in connection with Union business. Such representatives shall report to the Personnel Supe~'scx OT OperatiW Manager on anival.

3

5:05 The Unlon shall furnW the Company with the listing of kcal Union oflkm and shall amend these lists promptly as changes occur. Failure to advise the Company of such changes will not In any way affect the authwity of the Union officers.

5:06 The Company will furnish a list of superviswy pwsonnel to the Union office at the start of the mbad year and amend t, if required, at the end of each month. The amended list will Jlow the effstiw date of the changes. Failure to advise the Union of such changes will not in any way affect the authmity of Company supeMm.

ARTICLE VI - VACATIONS WITH PAY

6:Ol (a) Vacam pay shall be paid to each employee by cheque to be iswed at the time of termination or when the vacaMn is taken. Vacation pay shall be paid to each employee by separate cheque.

6:M (b) Vacation pay d i t s shall be pakl to each employee on the fdbwing basis:

(1) Fcur percent YO) of gross earnings for employees who have worked lea than fwr (4) years in one period of employment with the Company.

(2) Six percent (6%) of g m earnings fwempbyees who have worked more than fwr (4) years, but less than ten (10) years in one period of employment with the Company.

(3) Elght percent (8%) of gmss earnings for empbyes who have worked more than ten (10) years, but less than eighteen (18) years in one period of em@yyment.

(4) Ten percent (10%) of gma earnings fw employees who have worked more than eighteen (18) years but less than twenty-live (25) years in any one penad of employment.

(5) Tweh'e percent (12Y0) of gms earnings for empbym who have worked m than twenty-five (25) years.

(6) In the case of employees whose pencd of employment dates W to lune 1, 1963, thdr years of setvke shall be calculated as horn June lst, 1963. In the case of empbvees whose picd of emmment started after lune lst, 1963, years of service shall be cakubkd fmm date of hiring. Stabs of present empkyees is as shown M schedule "C" attarhed.

(7) Ernpbyees will be paid one m l weeks earnings at their regular rate of pay fw each week of wth br ZOh of gmss earnings in the previous calendar years, whichever is greater. Employees must have worked at least 750 hours during each calendar year. Time off due to compensaMe d e n t s shall be mnsMered as time worked.

4

6:02 A perbd of employment is defined for purpose dthis Agreement as:

(a) I n the case of an employee wha has established senbrlty as a perbd duting whkh he maintains hls amwd senkdty.

@) In the case d a probatkmry em- as a perbd not hken by a leave or an absence of more than three (3) Worwng days, excepting bydf.

603 An employee who has been continually employed fw one year shall take vacatlon time off at a time which is saatisfactwy to the em- and the Company. Each WO percent (2%) of mcabbn pay credit shall entitle an employee to one (1) we& of time off each year.

604 Vacation Xhedules will be completed by March 15th and vacations will be confirmed and posted by April 15th of each year.

605 Vacatbn requests made aRer March 15th will be confirmed as x ~ l l as possible but in IX) case later than one mth after the reqwst.

606 All employees wlll be instnrcted on August 15 to schedule any outstanding mations at a time satisfactory to him and his supervisor. Employees who have not schduled their outstanding vacatian by September 15 will have it assigned by the Company.

6.07 NEW When economically feasible a plant vacation shutdown of one week wlll be scheduled each year at Christmas, The Company will advise the Union on March 1" of each year of the proposed vacation shutdown, where applicable

ARTICLE VI1 - HOLIDAYS WITH PAY

7:Ol Employees who have acquired seniority status by having completed their probatlaMry periad shall be qualified to be paid without the p&mm of wark for ttte following Midays:

New Years Day Labour Day GoodFriday, Thanksgiving Day work Day Remembra~e Day Canada Day Christmas Day CMc Hdlday Boxing Dav

When any of the above hdiiys fall on Saturday, it shall be observed on the

Canada Day and Remembrance Day may be obmed on Friday or Monday with

preceding Friday, and If the Miday falls ci~ Sunday, it will be obsenred on the fdlwring Monday.

mutual agreement between parties.

Remembrance Day (November 11th) Miday will be observed during Christmas and New Year's perkd. The shutdown day will be mutually agreed IX) later than September 1st each year. I f agreement of the date is not reached by September lst, ule holiday will be observed on November 11th.

5

In addition, emploVees who have accumulated three (3) months seniciity will be granted two (2) floating holidays per mbact year (September 1st to August 31st) to be taken at a time salisfactory to the employee and his supervisw, Floating hdiiy; not taken prior to July 1st in each year will be scheduled.

An emprovee who, by reason of layoff, is pen ted fmm taking his Roating hdiiy(s) shall receiw pay in liw of such Mday(s).

7:02 (a) An employee who has &Mished seniority in accordance with Artide W, is eligible for Miday pay pro\lded:

(i) He works his last xheduled shift prior to the Miday and first scheduled shi fdlowing the holiday, unlea pented by circumstances beyond his contrd, or

(ii) I f an empbyee has worked any of the avaiiak wwk day; within the thirty (30) day; immediatdy pior to the holkhy, is on authorized leave of absence when the holiday occurs, he shall receive hdiday pay for the first Miday that mrs during his absence, or

(iii) An employee who Is obliged to cease wwk due to lavoff during the thirty (30) day period immediately prior to the Miay, shall receive holiday pay for the holiiy(s) within such thirty (30) Qy period, 01

(iv) An emplayet who is o b l i i to cease work due to S i 01 accident certified by a licensed pract~W during the thirty (30) day period immedi!tely p-kx to the hdiday shall receive Miy pay for the holi iy(s) within such thirty (30) day perod.

7:02 (b) Hwdy paid emploVees will receive eight (8) times their hdy rate.

7:02 (c) I f an empbye who qwl ik U& k W XI1 is recalled and works anytime during the fourteen (14) calendar day psicd immediately following the hdiday(s), he shall receive holiday pay for the p x d i n g holiday(s).

7:03 An employee who is requested to work on any of the hdiiys in section 201 shall be paid for all time worked at one and one-half times his regular rate up to elght (8) hours worked, and &Me time after eight (8) hours.

7:W An employee on regular vacath during a week in which a statutory h d i i y falls, shall have theoption of having a day off with pay at a time mutually convenient to the employe and his supervisor within the following 180 days or having the hdiday pay added to his regular wtkm pay. I f the emploVee elects not to defer his hoiiiy payment, he must advise Management not later than ten (10) days prior to the commencement of his vacatiMl period.

6

ARTICLE VI11 -ADJUSTMENT OF GRIEVANCES

801 It k the mutual desire of the pam heretD that complaints of an employee be adjusted as quMy as possible. It is generally understood that an em- has rx) griewce until he has gm his shift supervlxw an opportunity to adjust his complaint. Prior to redudng a mmpbint to a grieMnce as perm 803 the em* may request his shop Steward to be present at any further discussion with his shift supervisor.

8:02 (a) The Company shall recognize the Grievance Committee whkh shall mnsist of the Preddent, two execuUve of fkm arid at the dimtian of the CnieMnce Committee the Steward invdwd.

It is understood that the Stewards and other Union oRcers shall not be absent hom their regular duces In order to deal with a grieMnce without obtaining piw authorization hom their shift supetvisw. This permission will not be unreamahy withheld.

7he Company agrees to pay members of the Glievance Committee h bss of wages for authorized time [ost for handling of grievances.

The shop Stewards recognized ty this Agreement shall be as follows:

a) Planer Mill b) Large Log Mill c) Small Log Mill d) Procenor & Yard (Include mobile equipment operators 8. garage) e) Maintenance (indude elecblcal m)

When the operating M u l e for (a) to (d) consists of more than one shift there will be one Steward ~1 eadr shiR

8:02 @) It is agreed that there shall be IK) disaiminatian eKerdsed in any manner towards the Stewards Q Unkm Grlwance Committee members OT other Union members.

8:03 A grievanceunder the provision ofthis Agreement is defined to be any lwlerence between the parts or between the Company and employees covered by this Agreement inMkring the interpretam, appkah, adminimtian or alleged violatian of any of the provisiw of this Agreement.

804 STEP I - GrieMnces as defined above shall be taken by the empbVee together with the Union Steward having jurisdiction directly to the employe's immediate shift Wpervisw for adjustment. Any grievances submitted to the shiR supetvisor in accordance w(th this p r d u r e shall be in writing and wlil be disposed of by the shift supewiscf in writing. Failing a satisfactoly adjustment within forty-eight (48) hours, then;

(indude mobile equipmt operators) (indude mobile equipment operabws) (indude mobile equipment operabws)

7

STEP11 -The matter shall be taken up by a member of the GrieMnce C M m h and the Steward having juridim with the Area Supenntendent and the H u m Reswrces Supemisor. This procedure shall be In miting and wiii be disposed of by the Area Suptintendent and the Human Resources Supemisor within five (5) days, then;

S E P I I I - Wthln ten (10) days the matter shall be taken up by the Grievance Committee with the General Managw of the Company or his representatiw. Faillng a sabfactwy adjustment then;

STEP IV - W i n RReen (15) days the matter shall be presented to the Company by the Grievance Committee and the National Representative. Failing a setl!ement wMin fifteen (15) days, then;

STEP V - Either party may within the fdlowing fifteen (15) days, refer the matter

In Arbitration, the Company and the Union shall each se& one man; thee two (2) shall se& a third patty who shall act as Chairman. Either party shall appoint its nominee not later than five (5) dap after receipt of written r&e of the other paws nominata. lhe Ahitnth bard's dedsion mall be final and binding on both parties to this Agreement. In the event of the failure ofthe two (2) people selected by the w e partb to sdecta third party as provided above, th&y shall ask the Pmvindal Minister of Labour to appoint a third patty.

All time limits menW in the grievance procedure may be extended by mutual consent of the Company and the Union. I f a grievance is pmcessed through to ahkition the Arbibation Board shall have the pow to relieve against m m p l i a n c e of Cme limits.

Nothing herein shall prevent the paM hnm mubiiy agreeing on a de ahkitor to arbibate grievances arising out of this Agreement.

8:05 It is understood that the fufxtbn of the Arbibalh Board shall be to interpret and ap& this Agreemt and that it shall deal only with the spedfic q w t i m s as s u b m i and shall have no power to alter, add to, or amend this Agreement. However, the function d the Arbibata Board shall indude the power to consider adystmenk to Individual daaificatas under k t h 4 0 2 and rates for pb daaifmtim under S&m 4:03 and to mise the rates therefwe. The Arbibabm Board $ail have no power to decide q u m s invdving general wage adlwtmenb.

8:06 Sundays, Stabtory and Legal Hdldays shall not be induded in any time limits in this Art& of the Agreement.

8:07 A grievance arising from a daim by an employee that his discharge or suspenh by the Company was unjust or ambary to the terms d this Agreement, must be dealt with, in writing, by bdh par@ and must be presented to the Company not later than ten (10) days after the discharge or wspensim becomes effectiw. Grievances dealing with wspenJon shall be pmcessed from the s a & step. In the case of suspension ty the Company, the Company shall notilj the employee, in writing, of the ream for such wspension.

towition.

8

Discharge grieMnces wlll be processed beginning at Step III of the grleMnee pmcedure. The Company shall notifi the emplcyee, h writlng, the mm for discharge.

In the event h t an emplcyee ls found by an Arbltratbn Board to have been unfaldy dixharged 01 suspended by the Company, the Company agrees that the empbvee will be reinstated on hls job under terms and c o n d i h dedded bv the AttibaUm Board.

608 Each party to this Agreement shall pay all expenses of the member of the Att~~babon Board selected by it 01 by the Minister of Labour and shall share eqwllv In the fees and expenses of the third member ofthe bard.

809 Grievances whkh lnvdve Company policy In resped to the lnberpretrtbn, application, admlnlsbation 01 alleged violation of the Agreement may be processed axnmendng at Step In of this Grievance W u r e .

810 I f the Company has a grieMnce as deRned In Wim 803, It shall wmmence at Step 111 OF this Grievance Rocedure by the General Manager OT hls representawe presenting the matter, In wtiting, to the officers of the Union.

8:11 Employees to be disdplined (wtllten warning, wspensbn or disdrarge) by the Company will be provided with Union representation. When an employee has been Indefinitely wspended fmm work, the paw will endeavour to meet before the employee's next regular scheduled shift or at a time agreeable to both parties. The Company WIII copy the Unkn on all verbal warnlrgs Issued.

The dixlpllnaiy recMd of an em- shall not be used for the purposes of estaMkhlng progressive dlxlpline after a period of twelve (12) months of work has lapsed without any other dlxlpllnaiy Infracton m n i n g .

I n cases Involving theft or sabotage, this discipline shall remain active for a period of mree (3) years of wMk from the date of the Infraction.

ARTICLE M - NO STRIKE - NO LOCKOUT

There shall be no strike caused, called, 01 supported by the Union or its members, nor Wts by the Company during the life of this Agreement.

ARTICLE X - WORKING CONDITIONS

10:Ol (a) It Is agreed that the Company and the Union shall cooperate cd!edvdy In lmprovirg safety and first aM pradkes. The Company and the Union agree to set up and maintain a hint Health R Safety Committee to promote safe Worwrg condkkm and pactkes. There will be at least MI (2) meetlngs of the Safety Committee each calendar quatter, The pos ih of the Chairman shall a h t e between a Company Cochairman and a Unlon CO chairman.

9

The Olairman of each meeting !ilall make a report in triplicate, copies going to the Company office, the Union office, and the bulletin boards.

A member of the Committee Is entitled to such time off from his work as is necessary to attend meetings of the Committee, and the time so spent shall be deemed to be work time for which he !ilall be paid straight time while on shift or time and one half If off shift for all hours In attendance at the safety meetings (c.all out time not applicable).

All required safety equipment (exduding safety ooots) Is provided at the employee's induction, and on-the-job familiarization and safety training is provided by immediate supervisor.

10:01 (b) The Company agrees that Local 31-X representatives will attend all future E. B. Eddy Forest Products Ltd./Communications, Energy and Paperworke!s Union Safety Conferences. Six (6) delegates from Local 31-X may attend the conference. These delegates will be compensated for any loss of wages incurred as a result of attending the Conference.

10:02 It is agreed that there shall be properly equipped first-aid kits sufficient for normal requirements, loc.ated on the operation.

10:03 Toe Company agrees to provide a statement for each weekly pay period to all employees, showing all credits, deductions, hours of work and the rate per hour, ail hours worked at premium rate, and the type of work performed by the employee during such pay period.

10:04 All hand tools and equipment required on the job will be madle available to all employees on loan. When an operator of equipment is required by the Company to do a mechanical repair job, he will be furnished such tools as are required. All tools and equipment not returned will be charged for in full. Worn out or broken tools will be replaced with serviceable tools free of charge provided that the worn out or broken tools are returned. The Company will provide free Insurance against damage by fire or theft of tradesmen's tools normally required by tradesmen to the full replacement value of such tools. Employees will be required to furnish the same tools which were required in the past. Tradesmen, to be eligible for above insurance, must provide the Company with a list of their tools. Employees' damaged or broken tools must be reported to the supervisor and arrangements are made for replacement. The same policy applies to tools lost by fire or theft However, there may be some delay in the replacement as we must investigate the dra.imstances.

10:05 The Company agrees that it will furnish on loan, all mandatory safety equipment and personal safety apparel save and except safety ooots.

The Company further agrees to sell to employees safety ooots at eighty-five dollars ($85,00) below invoice price to the Company.

The Company will subsidize all Debarker Operators $12.00 per pair for chainsaw safety pants purchased.

10

The wearing of safety equipment and appard will not become a amditbn of employment unlea it has teen agreed to by the Company and the Union or Is mndatciy under Government legislation.

The Company will pravkfe quallty work gbws for all employees.

10:06 With a mill-wide wmpulsoly safety eyeglass @cy, the company, will provfde all safety glasses, induding indusbial prescription safety gbsses.

10:07 The Company agrees to supply on ban, raincoats and d h aprons, however, this shall not apply to m l personal Items, such as shoes, pants, etc.

1008 The Company and the Unlm agree that Labwr Management Conwltatlon Meetings mo!d be held on a monthly basis, unles drcumstances a& that wwld necetsitate immediate meetings or discwskns on maw Involved. The purpose of these meetings wl! be to d i m with the Union ways and means of improving CMldiUOns for all emploVeg aweced by this Agreement, the interpreta,tbn of this Agreement and to provide Infamatlon and discus iwes related to the Company operations.

A commlttee m e m k Is entitled to such time off from his work as neceaary to attend meetings of the committee. such time qxnt Jwll be deemed to be work time for Vrtrlch he shall be paid straight time while on shift or off shift for all hours in alterdance of a meeting.

10:M As per the attached Letter of Understanding re Coveralls, the Company agrees to the addim of one (1) pair of awemlls maklng available tlve (5) pair of coveralls to all tmlesmen.

1O:lO The Company will ensure that muate tempwabres are provided in lunch and washrooms.

1O:ll The Company provides first aid arrangements as requlred by Pdnda l laws.

1012 Effective the Rrst date of the conbact renewal the Company will conbibute b~ monthty cheque to the Financial Secretary of the local union $0.03 per hour per em* for all compensated hours for the purpose of M i n g pakl education leave.

Said pald leave wlll be for the purpose of upgrading the employee’s skill In all asp€€ts of health and safety and bade union educabn.

EmploVees on paid education leave of absence wlll continw to aaue seniority and bmeRts during sd leave.

ARTICLE XI - HOURS OF WORK

11:Ol (a) The week for opemhs shall be six (6) days per week M d a y to Saturday Indusive. The work week for day or shift wwkers shall be forty (40) hours, elght (8) hows per day, Monday to Fnday indusiw, or Tuesday to Saturday indusive.

11

It Is agreed that day workor shift wwkempbyees may be required to work in excess of their regubr work day or shi l or work week, and will be paid In accordance with Secthn 11:OS for wch time Hwked. If an emwee requests to be excused h m working overtime, permissk~ will not be unmasonatiy withM.

11:Ol (b) For the purpose of this Agreement, Sunday shall begin at 700 a.m. on Sunday and end at 7:00 a.m. Monday.

A holiday shall begin at 7:OO a.m. the day of the hdiday and end at 7:OO a.m. the day fdlowing the holiday. An emmee's "sixth day" (Saturday w Monday) shall begin at 700 a.m. of that day and end at 7:00 a.m. the day fdlowing.

U02 On other two-shift operations, the first shift shall consist of eight (8) conwtive hours, meal time excepted, and shall commence at 7:00 a.m. w after. The second shift shall consist of eight (8) consecutive hours, meal time excepted, and shall commence prior to 7:OO p.m. and shall any a shift differenbl of the second shift,

11:03 (a) On a threeshift operation, the shib shall be eight (8) tonsecutive hours. The starting and stopping times for the three (3) shib and the shR differentials to be paid, shall be as follows:

starting Time Stopping Time (between the hours 00

3:oO p m - 400 p.m. W O O p.m. - 12:00 a.m.

(between the hour of) lstshiff 700a.m.-8:00a.m. 3:00p.m.-4:00p.m. 2nd shift U00 p.m. - 1200 a.m. 3rd shii 7:00 a.m. - 8:oO a.m.

Shift Differential: 1st shlft - nil; M shiR - $0.52 pw hour; 3rd shift - $0.62 per hour.

11:03 (b) The hours of work and the "sixth day" for day workers and shift workers shall be posted by 3:OO p.m. Thursday of the previous week. However, the Company metvs the right to revise the schedules when necessary up to 12:OO m Friday prwious to woi-k week. The starting and stqping times shall remain constant and fixd during the weekly period wbjat to the following:

An emproyee my rot change shifts during the week except when his shift dvxlule is chaw by the Company. When an employee's shift xheduk Is charged by the Company he wlll be paid at one and one-half times his regular rate for the first shift wcdd a b the change. When the emmee reverts to his original shift, he shall be paid at his regular sbaght time rate provided that thece is a break of at least eight (8) hours betwm shifts worked.

When an agreement for a change of shiR by employees is requested, fwms for this shff change will be made an i l ak by the Supenisor fw signature by the employees concerned and their Supervim.

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The Company will post by the 15* of each month, the opeating schedule (not the work schedule) for the following month for the Sawmill and the Planer.

11:03 (c) If an employee, who hascompkbed his scheduled work week, is reguked for work on hls "sixth day" or Sunday, such awrhme shall be p o M by the preceding Frkby m. If he ls available for the posted wertime wolk at regular startlng Utne and is unable b cfmmnce warltfor reams kr$md his mbol he shall recdve four (4) hourspay at Ume and anehat provided he remain avalbbleforthe four (4) hour period to requested bythe Company.

11:W (a) Aday or shift WarkW who is uMbk to work the full day 01 shift for ream b€yond his contrd, shall be pad for the full day or shift.

To qmlQ for the above the employee must stay on the @b until tdd by the Shlft Supe~sw that he may leave and must accept other than ha m l work tf It is dfered.

1l:W (b) If, dunng his xheduled work week, a day or shift worker reports for work at his xheduled starting time and k unable to cfunmence work for ream b e y d his mbol, and If no reasonabieefforts have been madeb nob@ him not to report, he shall m four(4) hours pay for reporbng, pranded he remains available for the four (4) hour petid If 50 requested by the Company.

Nobfiation pracedures shall be established locally.

11:OS Time worked In of aght (8) hours per day or shill, ail hours worked ~1 Suriday and all hours worked bf an emproyee on his designated 'Wh day" (Sahxday or Monday) 01 wtskle hls xhedukd hift shall be paid for at the rate of bme and one-half. Dwble bme WIII be paid a k eight (8) hours of work on a Sunday. Ovett~me work required will be distributed in MCol(1ance with the Letter of Understanding Re: overtime D~strlbutian.

For calculating OvettJme pay shiR diffmbals shall not be considered as part of an employee's applicable hourly tate.

When an employee IS called out for overtime wMf after completing hls shift or when called cut on his day offf he shal be gutanteed four (4) hours pay at bme and onehat t he wwkr less than four (4) hoursf and elght (E) hows at time and me-half t he Is unable b work the full elght (8) hours.

The Company will record ovwbme worked by each employee for each week and post in a visible h b o n .

11:06 A ten minute "quarter bme" on Company time shall be allowed twm each shk

I

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ARTICLE XI1 -SENIORITY

1201 The Company recognizes the principle of senunty. Seniunty will govern, subject to reamble mnskhation of skill, effidency and ability, in promt!ms, !mM, layoffs, and recalls after layoR.

As of September 1,2000, the seniority ranking of employees is as set in schedule "c' attached.

1202 Employment of any new employes shall be CMlrjdered as probatioMv un61 he has completed thirty (30) days of work in one period of employment. Upon ampletion of this probakmy period he shall beclassed as a qualified employee with seniciitv ranking dating back to his date of hire. A discharge, quit 01 absence without leave, shal break any aoxrrnubtkm of Wlifying days.

1203 In the case of byof due to a shortage of work the Company Will nos@ the men intended to be bid off at least bw (2) workdays in advance, unless the shortage of work is bpnd the Company's conbd. The Union Glievance Committee will mdve a list of the men aff&d, ptior to the intended bydf.

12:W when the approximate time of the recall is known at the time of byoff emploVees leaving will be infonned of xlch appmximate dates at that time. @ut in any case, mtke in wibng will be sent to an em- at his giwn address at least fourteen (14) days before he is required to report fw work. EmpbVees will be required to acknowledge receipt of such notice and report for work on the date SpedM unless other anangemts have been made in writing.

12:05 An wnplovee whb has established senmity and who returns to work in time shall retain his seniority ran!dng during absences due to:

(a) sidoless or injury, c e d i k l by a licensed phyddan, dentist, OT licensed chiropractw.

(b) layoff for !a& of work not exceeding twenty-fwr (24) months. (c) leavmf-absence gmnted at the employee's request not e x d i n g ten (10)

months. (d) employment with the Union not e x d i n g tweive (12) months. Such leave

(e) employment with the Company outride the bargaining unit not exceeding may be renewed Upon reqwn eleven (11) mths,

An em- who quits of his w n acmrd OT is discharged and not reinstated, OT fails to report to work Mbwing recall as pW in section I2:W shall automaticaliy lose all Wcnty. An empbyee who fails to return hom leaveof-absence on the date spcifd, shall lose his seniority udes his return to wMk mtim is prevented by anurnstam bevond his mttd. NI absences hom work must be cowred by leaves-of-absence the iswe of which Is dixrehary but which will not be withheld unreasona!3y,.

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12% When emploVees apply/M h m one pb dafsibtbn to another, senior em- with the necmssary quaukatlons shall & f!& cwlderation. In such cases an em- shall recehre the rate for the@ to wbkf~ he k bansfemd. when, due to sholtage of work, In hs lndded dadfkatbn an em- k asslgned to a lower paid Jd, dadfkation, theempbyee shall receive the rate fw hk newgbdaSsiRGlbon as ofthe date of assignment In the caseda temporary draw to a lower job dassifkation at the Company’s request, the employee shall retaln the rate of hk prevlousjrh dasslfkation.

Tmdespeople will not be permitted to apply/W outslde thelr dassmCation until they have worked in the speufk bade as a licensed tradesperxln for a petiod of time equal to their apprenbceshlp. An empbyee hlml on dire@ as a licensed badesperson will not be permitted to apply/M outslde his dassibtion fw a period of one year. In a by off wtuabon, bM off badespeople wiil exerase mill senmty.

1207(a) The Company, when Riling posted vacandes, will do 50 from withln the bargaining unit In accordance with Altkle 1201. N o b of impending mndes will be pbsted on the bulletin boards for rive (5) working days and will be mailed to employees off work on WI, LTD OT WSIB.

12:07@) Temporary appdntmenk may be made without posting fw filling ~candes of less than hvo (2) calendar weeks duration.

1207(c) Newly created bbs will be posted on the bulletin boards by the Company fw fiw (5) w d n g days prior to any appdntments to such jobs, stating m l job requirements. A newly created posltion can, at the Company’s discretion, be omsidered temporary for not more than hvek (12) wsecutive months. Should it be dedded during this 12 month period to make the pkion permanent then the lob MU be pmted as per Artkle 12:07 (a).

1207(d) Em- shall not be omsidered for posted lobs unless thq apply In writing within a five (5) day period. Anempbyeeabsenthm wolkfora period of MIP than thlrly days (vacation time accepted), shall automatically be listed as an applkant on all postings that axurred wlthln the ninety (90) day period immediately prior to his return to wok Immediateiy upon his return he will be YI advised by the Company and must signlfy M w i t h that he is allowing the application to stand. Failure to so $nib wlll render the applbtbn null and vcid. The Company shall post rotices showing the fumes of d l applicants for p i e d vacamles and newiy mated jobs.

12:07(e) The job will be filled from among the qualiFRd applicants on the bask of Secta 1201 of this Agreement An employe who is contacted to aaept a posted vacancy WIN be allawed up to eoht(8) hwrs of paM time to obsenre the Incumbent petfm the posted occupation.

An employe who subequent& aaepts a pasted ld, shall be allowed (5) wwk days In which to qualify(0r further time as may be mutwliy agreed to but will not be unreambly withheld). An employee may forfeit an aoxpted bid within the qualifying periad no more than m a In any h&ve month pkd. Failure of an employe to qualify 01 his election to forfeit shall en& him to return to his fwmer job without loss of senlwity or benefits.

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1207 (9 A jcb that beaws vacant because the incumbent has had to vacate It due to skkness cr injury, mation, bereawment leave, jury &hy and/or a leave of absence mt exceeding thlrty (30) work days, shall be cbssltied as a tempwary vmrq and shall be filled aCmding to the provkbns of Sectbn 1207 (a) and the posting Will cote that It Is of a temporary nature.

The employee who had occupkd thepb, upon hk return to WMk shall me win accupy theM that he had filled prior to vacating for any ofthe msms set forth above, praded howewr, that the job k still in effect and is not filled bya senior employee who, for reams of now of layoff horn hls rWmerpb has exercised his senw on this partkular jcb.

1298 Uns showing the miwily tanking of employees will be pepwed and posted on Company bulletin boards, available for the in fwmah of all ernpbyees and will be updated and revised every month. A q y of this listing will be Warded to the Union.

12:09 The management and the operation of the pbnt, and the d I M and the pmrobbn of the woddng fates K vested exduwely in the management of the Company subject onty to the senw Arkk herein and pro\lded, however, that this will mt be used fw dixriminaUon against employees.

12:lO When jcb are dvontinued dw to the inboduction of new methods, automath and techdoglcal change or due to curtailment of ope tam (exduding m l A W b s in prcducEa lewls) affeded employees shall be offered altemaWe employment on mining pbs in accwdance with Article HI, to meet the Company's labour requirement and If such employes require bainlng to perfm the altemative employment effectivety, t k y shall be bained by the Company,

ARTICLE XI11 - BULLETIN BOARDS

13:Ol The Union shall have the right to post rotices dealing with Union affairs upon the bulletin boards of the Company pmMding such notices have been appmwd by the PeMnnel Supemisor M Manager.

The Company will p d e four Union notice boards in the fdbwing bcatim: - one in each lunch mom, and one at the office of Ted Wl.

ARTICLE XIV - HEALTH AND WELFARE

14:Ol WEEKLY INDEMNlTY - The Company will maintain and pay the premium cost of a Weekly Indemnity insutance pbn and will administer the inwtance plan as outlined in M u l e "E". The plan will pro\ide seventy percent (713%) of the employee's q u b r sbaight-time rate up to the maximum noted W or the E.I. maximum, whichever the greater. Ihe Company will reimburse an empbyee up to a maximum of $25.00 for all medical documents (including Supplemental Reports) and medical exams requested by the Company for such claims upon presenblkn of a receipt from the attending physidan.

16

E~WW first of the Ath following date of mtihtion for all em- acthrely at wrk, the maxlmum weddv lndemnlty bet& wlll be Increased to $520/week or the E L maxlmum, whichever the gmter kffecb;ve September 1,2000. ~ffective September 1, 2002 the maximum weekly indemnity benefit will be inaeased to $54O/week and effective September 1, 2004, the maximum weekly indemnity benefit will be increased to $ 5 6 O / w d

14:02 LONG TERM DISABILITY -The Company shall pay the monthly premium cost of the lmg Term Disability Benefit Plan,

The Long Term Disability BenetX Plan shall be admlnlstered In W a r n with the terms of an insumnce polky.

1. Ellgibility - The Long Term Disability Benefit Plan shall be compulsory for all employees who have accumulated two months seniority with the Company.

2. Effective Date of Covetage - An eligible empbVee is entitled to beneRB provkled he Is actively at work on the first day the LMlg Term Dmbility Plan becomes effectk. The pbn becomes effective Febnrafy 1,1979.

An eligible employee absent from work due to sidoles or acddent at the effectbe date of the Plan, shall only be ellgiMe for LMlg Term Disability Plan beneb upon the rehun to continuous active full-ti~~ employment for a period of more than four consecutive weeks.

An eligible empkqee absent from work due to layoff at the effective date of the Plan shall be entitled to the Long Term Disability Benefit plan benefits upon recall on reportly to work.

The Company shall have the right to glve medical maminations to emplovees returning from such layoff to determine their eligibility under the Plan.

3. Qualifying Perkd -An Insured employee shall be eligible to rm?k an amwnt d Long Term Disability Plan Benefit a b r fifty-two week of benefit entitlement for the same disability undw he W & y Indemnity Rn . Benefit payment shall not commence durlng a sbike until the termination of the sbike.

4. Definlkm of Di&lity - "Disaability" shall mean an insured emwee who has received fifty-two (52) week of benefits for the same disability under the W & y Indemnity Plan and is thereafter unable because of disease or injury to work at any available mpa t i o r~ In the Company far which he is teasonab+ fitted by education, baining w experience.

5. Amountof b e f i t

-th followina ta!&&~ for those empbVees acthrely at work lmse the maximum monthly bendit to 55Y0 of monthly eamlngs as defined In (5)(b) up to a maximum monthly payment of $2100.

(b) ' "Monthly Earnings" means, in the case of a day or shift worker, 173 x his regular hourly mte.

17

(c) "Houdy Rate" means the regubr rate of the employee efkW immediateiy prior to the date on which the disability occurred, add ing Overtime.

(d) The benefits payak under this Rn are reduced by any ptimaty disability payments made under the Canada pension Plan, or any Company gmup disability i m pbn. &neb are not affeaed by War Pendens, Wcdqke Safety and Insutance Disability pwiw, or by any i n s u m polides he may have purchased himself.

6. D M h of Benefit - (a) Benefits will be pad forone month, for each completed month ofwvke prior

(b) Senice for purposes d the pbn will be based ~1 the senbdty ranking of

(c) Disability bmf% will be paid one month in amars.

7. Termimtion of BeneMs - Benefits JlaU cease upon the o c c u m ofany one of

(a) On thedate theempbyeeceas to bedisabkd. (If there Is a recwrw~e of the same disability within dx (6) months d rehrrn to work, a new qualifying period will not be required, and the disaMed empbVee will be eligible far any babnce of Long Term Disability h i i t payments. This pmvirjon shaU take precedence over any recunent disability prwision under the Weddy Indemnity Plan), or

to m m e m e n t of the Long Term Disability Benefits, while the empbvee is disabled.

em- as is set in Schedule "C attached.

thefdlowing:

(b) On exhaustion of the benefit pwiod, or

(c) up to m l retirement age, or

(d) Ondeath.

8. Exdusion-

(a) An empbyee receiving Lmg Term Disability Benefits will rot be eligible for

(b) Benefits under the Long Term Disability Pbn will not be payak for daims

(i) Any injuty arisjng out of or sustained while doing any act or thing W i n i n g to

(ii) Any injury or illness entitling !he employee to compensat~ under any

VMatiOn or statutoly h d i y pay.

resulting from:

any cxxupation DI empkyment for remuneration or profit, w

Worker's Safety arid Insurance or similar legislath, or

18

(Ill) SelfdesMion or any &-Inflicted injuty, M e sane or Insane, or

(v) Disability for which the employee Is not under the treatment of a phvsidan, 01

(v) Akohdism or drug additim, unless the em* Is u-rg a mgnW wurse of treatment by a spedallst In the care and treatment of a W s m and drug addktian or the emplovee Is underpdng rgwbr rehaMlltative treatment approwd by the lnswer and a licensed physkian.

(vi) DlsaMlity 01 loss (1) while the emplovee Is on, M wukl be pbced on PregMncy/Matemity Leave, or (2) if em- fails to qualify for Pregnancy/Matemlty Leave because of Fdilure to meet the of m i c e requlremenk, during the perkd of PregnatKy/Matemlty Leave that the em+ wuld be on if she quallRed for such leave, in accordance with the current Employment Standards Act, Ontarb or any other relevant provindal stam.

9. Rehabilltatim - An employe receiving an amount of Lag Term DlsaMlIty Benetit may be asked to undergo reamble rehabilitatim measures WM have been the subjet of p r h conurltation with the employee's doctw, at no cost to the employee. If such empbvee refuses to undenake such rehabilitation, he may be dedwed not eligl!A? fw an a m t of disability benefits.

10. Phwl Ewminatbs - The Company a d o r insurer reserves the light to requlre perlodkal physical examlnations thmughout the duration of the employee's absence due to disability. such examlnations shall be cmducted by a physidan or physidans designated by the Company and/w Insurer.

Cost of physical examinations, bansportation and reamble out-of-pdiet qwnses related thewto wlli be paid by the insurer.

Any dispute arising between the Company and/or the insurer's physkbn and the employee's p h w n will be resolved by a physician (preferabiy a spxialist) chosen by the Company and the Union.

11. E W e first of the month fdlowing date of ratibtim, the Company Is prepared to extend Medical, Surgical, Drug and Hospital Care Plan Coverage to all emploVees on Lang Term Disability for a perbd of their disability.

14:03 GROUP LIFE INSURANCE - The London Ufe Insurance Company, E.B. Eddy Forest Products Ltd., Grwp Wlcy No. 11706 will remain in effect during the life ofthis Agreement.

The above pbn benefit will be $45,000.00 life insurance with twentv-four (24) hour Accidental Death and Dimberment (A.D. & D.) cow for each active emplovee.

Effective September 1,2001, the Company will Increase the amount of life insurance to $60,000. Effective September 1,2M)1, the Company will increase the amount of AD. & D to $60,MH).

19

The Company agrees to pay one hundred percent (100%) of the premium cost of Life Insumm.

It Is understood that the Sll2th rebate to employees under E.I. will be retained by the Company.

Eff~t ive first of month fdlowing date of mtificakm, the Company will pmvKle

I) Employee pays 100% of cost.

3) EachunmaMchild a) 14 days but less than 1 year of age $4M).OO b) 1 year but less than 19 years or 25 years when a student full time, whdk dependent CHI the employee for s u p m $2,oOa,OO c) The spouse's Life Insurance will be reduced to $500.00 upon the employee's regrement and cancelled ~1 his death.

dependent Life Insurance on the following basis:

2) spou~$5,Mx).oo.

The Company will provide a paid-up Life Insurance polq at age 65 d $2,500.00. Company will pay premium cost of thls benefit,

1404 MEDICAL, SURGICAL, DRUG AND HOSPFAL CARE PLANS - The Company will pay the premium for the L i M y Health Drug Plan and Semi-Private Hospital Care Pian cowq for all active employees during the term of this Agreement,

Effective September 1,2004 the Company is prepared to extend the provisions of the drug plan coverage for all employees retiring between the ages of 60 and 65 until they attaln age 65. It Is undentood and agreed that this coverage will also be made available to those employees retiring under the Spedal Retirement Window and any other employees retiring before August 31,2005.

The Company contribution to empbyees who are off work due to a W W s Safety and Insurance daim 01 a Weew Indemnity daim will be m t i n u d for a pwd of up to huenty- four (24) months,

The Company mtr ibubn to employees who are off work due to a Long Term Disability claim will be mt inwd for the period of the disability.

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1405 DENTAL CARE PLAN

1. Eligibility - Partiapah in the Plan is llmlted to employees who have accumulated three months of seniority with the Company hum date of employment.

2. Plan Desgn - a) Service and benefits as provided in Blue Croa No. 7 Basic Pbn and Wer No. 1.

b) Servkes'and &fits as pmvided in Blue Cross W No. 2. (500/0) Maxlrnurn $1,000.00 per calendar year per person.

c) Services and beneMs as provided in Blue Cmss Mer No. 3. (50% CO insurance). The maximum lifetime benefit for orthodontic servke covered expenses $1,000.00 per insured famity member.

Effective Rrst of the month fol lowina date o f a m e n d p l a n t o provide far the 1997 O.DA. Schedule of Dental Fees,

Effective September 1,2001 amend the plan to pravide for the current dental coverage increase to $1,500 per calendar year per insured person with a one year lag on the O.D.A. Schedule of Fees.

It is understood and agreed'that the Plan will prwide for the cmtinwtbn of cawage for the period an employee is off work due to layoff w leave of absence, but In no case kymd the end of the month foilawing the manth In whkh such absence commenced.

3. Adminishtim - The Plan will be administered in xCol(1ance with an appropMte mbact or set of procedures M n g the Plan design outlined in Item 2 above. The decision as to the choice of administraw vehkle from among service carriers, Insurance companies or self- administration will be made by the Company on the basis of appropriate OF these alternatives.

(100%)

4. Premiums - The pi-emium cost of this Plan shall be paid by the Company.

5. Integration - ?he Plan will not provide like benefits where such are cunwrtly belng provided by federal or provincial kgislah.

I f during the life of this Agreement Federal or Pmvincial government shall InbodUCe legislation to provide teneRts already c o v d by this Plan, the Plan shall be amended 50 as to eliminate said benefits.

14:ffi ProduN Ltd., Group Pdky €4526 will remain in e M during the life of thls Agreement

m e ti rst of the month followina the date o f tabficatkq ' increasethevisioncare maximum benefit to $150.00 evwy hvcQ) calendar years. The benefit will be equivalent to NW Cross vision Care Plan (Bask) for all empkyees and their dependents.

21

VISION CARE PIAN - Mebopditan Ufe Insurance Company, E. B. Eddy Forest

1407 month following lay OR

BENEFITS AT LAY OFFS - The following benefits shall be paid to the end of the

a) UfeInsurantm

b) Medical, Surgical, Dw and Hospital Care Plan,

c) DentalCarePlan

d) vision Care Plan

ARTICLE XY - PENSION PLAN

15:Ol FLAT BENEFll PLAN - The Company will estaMish and adminisk a m conbibutwy pension plan for all hourly-rated empbyees with one year d senrice 01 more effecbLe September 1, 1984. N m l retirement will be first day of the mth following attainment of age 65. An emploVee with ten (IO) years of mntinws Company service can de3 to retire after age 55, however, the monthly payments will be actuarially reduced. The cost of the plan will be paid by the Company.

Effective septemk 1,2001, the Fiat Benefit Pension Pian is increased from $32.00 per year of pensionable m i c e to $38.00 per year of penrionable service for employees who are aaruing service in the Flat Benefit Pension Plan after September 1,2001.

It Is undentood that this increase of $6.00 per year of pensionable service will not apply to retirees covered under the Letter of Underrtanding Re: Special Downsizing Retirement Window. It will also not apply to employees who will receive a severance payment under the Letter of Understanding Re: Severance Pay,

To offset the cost of the pension formula increase for past wvice and for anent mice, the Company and the Union agtee to reduce the Hourly Wage Rate incmses granted under the term of this Agreement by 3.95%, during a pehd of three (3) years and six (6) months.

A temporary adjustment to the Hourly Wage Rate of all positions will subsequently be made to reflect this hourly wage increase duetion effective September 1,2001. A special rate adjustment will be made effective March 2005, to increase individual rates to 99.5% of their original projeaed level, taking into account the permanent cost of OSO% for current service cost increase

I n addition, employees will be allowed to bansfer their 2000 Domtar Profit Sharing payment into the Money Purchase Plan on a pre-tax basis.

22

Guaranteed Payments - If a retired employee's death mrs before he has receiwd sW (60) monthly payments of retirement imme under the plan, his retirement I m payments will continue & be paM to his benekiary until the remainder of the dxly (60) mthiy payments has been paid from the but fund.

SuMng Spouse pension - If a ma& empiope with 10 years of continucus service with the Company, who qualifies for early retirement a b age 55 and before age 65, des befare his retirement date the employee's surviving spouse will reeeiw 60% of the eamed pension allowance for the llfe of the survivhg spouse, commendng on the first day of the mth folbwlng date of death. If the surviving spouse is m than M years younger than the deceased employee, the monthly pensiMl w l d be actwrially reduced,

Disability Benefit - An employee with at least 10 years of wntinwus service who has attained age 55, has qualifd for disability benefits under the CPP/QPP and is totaliy and permanentJy disabled will be eligible for a monthly disability pension withcut actwrial reduction.

(1) -the Flat PenJon Pbn is amended toprovldefor $32.00 per month per year of pensionable senrice fw bath past and future service,

(ii) , any member in servke who el& to retire eatty upon higher attainment of age 60 01 after, pmvided he has accumulated at least ten (10) years of continuous service, will d i v e , commencing on higher ea* retirement date, a retirement income benefit eqwl to the retirement income benefit he/she had accumulated to such early retirement date without actualial r e d h n subject to the minimum reductions required by Revenue Canada.

, any member who has attained age sixly (60) and has accumulated a mlnimurn of ten (10) years of continuous service shall be d5ik to the fdbwing bridging supplement,

Those emplayees retiring ea* on or after age 60 with at least ten (10) years of continuous service shall receive a bndging supplement of fifteen dallars ($15.00) per month per year of continuous servke to a Mximum of thirty (30) years. The bridging wpplement will reduce to zem on the Rrst day of the month fdiowing the member's sixty-fifth (65th) birthday OT on higher death, whichever occurs~fint.

Employee off work on Long T e n Disability benefits shall contlnw to rn Flat Benefit Pension d i t s at IX) cost. This pcovision is to be applied to those emploVees cumUy receiving Long Term Disability bei@ts.

1502 MONEY PURCHASE PLAN - Effective January 1,1993, In additjon to the m n t flat Benefit Plan noted a h , a mandatory Money Purchase Ran will be inboduced and will be applicable to all employees after one (1) year of service.

(iii) EffectiwSeDtember 1.

23

Thls new Money Purchase Plan Ail be contributed to by both the Company and the emhee. The level of monthiy mnbibutcns will be $55.00 by both the Company and the employee. Effective SeDtember 1,1998 , at the option of the emplop, the mthb contribution level by both the employee and employer will inoease hom $60.00 to $70.00.

Effective September 1,1999, at the opm of the employee, the monthly ambibubn levd by !xth the e m b w and the empbyer will further intrease to $W.W.

In addim to those 0ptiMs noted above, employees will be offered the oppMtunity to bansfer monies genemted from the Production us into the Money Purchase Fian at their opkm. The administntive costs assodated with the Money Purchase Pbn are to be paM for by the Company. Any investment fees will be the responsibility of the employee.

Employees off wwk on Lay Term Disability shall be entitled to continue contributing into the Money Purchase Pbn while off on disability. The Company agrees to make their conhibution for as k q as the employee continues to make his/her conbibutions.

Those employees on W.S.1.B. can continue to contribute into the Mcwy Purchase Plan for up to twenty-four (24) mths. If the employe6 e& to continue contributing, the Company will amtinw to make their required contributions.

Employees who are off work d w to a W e e 4 Indemnity daim can, for a pencd d up to twelve (12) months mtinw to conbibute into the Money Purchase Plan. I f the empbVees elect to continue contributing, the Company will continue to make their required ambibuths.

ARTICLE XM - BEREAVEMENT PAY

1601 When death OCCUIS to an employee's spouse 01 children, the empbVee will be granted leave to attend the funeral and shall be paid for eight (8) hours at his regular straight time rate for time lost up to a maximum of fwe (5) days in the Wht (8) day percd beginning with the day of death. When death OCCUK to an empioyee's father, mother, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, brother, sister, grandparents, the employee will be granted leave to attend the funeral and shall be pad for eight (8) hours at his regular sbaght time mte fw time lost up to a maximum of three (3) days In the eight (8) day period beginning with the day of death. The intent of this &use is to allow the employee to attend the fuml without loss of earnings. Pay will be gmnted for the regubr mu led work days lost during the period. Any h i m for bereavement pay must be submitted by the employee in writing a@ with proot of bereavement in the employee's immediite family. If the employee does not attend the funeral, he shall receive one (1) days compassioMte leave

with pay. An employee must have thirly (30) or more darj of service to qualify fw payment.

The five day funeral leave will be granted over an eight day period fw xheduled wwk day; lost beginning with day death OCCUR.

24

An empbyee absent on xheduled vacation will be granted the usual number of days applicable to funeral leave in addition to his vacabn at a tlme mutually convenient to the employee and the Company within si* (60) days,

ARTICLE MI -JURY DUM

17:Ol In the case of an employee who is called for juty service, wbpwnaed witm (Y

uown witness, the Company shall pay, for each day of such service, an allowance eqwi to the difference betwen eight (8) hcurs of pay based on his regular sbalght time hcuriy rate and the payment he received for juv service. The empbyee will present p m f of service and of pay received therefore when maklng his daim for swh allowance.

The em* will be excused from his shift t he is reguired to work anytlme h the calendar day he Is required for jury duty.

ARTICLE MI1 - LEAVE OF ABSENCE

1801 The Company agrees to pay regular straight time wages to empbyees on temporary leave of absence fcdy (Ira) hours in ane period for Union business. 7he local Unh shall be billed for straight time wages pald. The Company will make all m l deductbns fw income tax, C.P.P., etc, A request in wrlting for a leave of absence fw m a l Union business will be submitted to the Human Reswrces Supervisw at least ten days in advance and the request will be granted subject to availability of employees to cover the vacancy. Reqwsts In wrltlng received less than ten days in advance will be granted provided the granting of the quest will not affect operations. The payment of overtime premium will not be mWed as affecbing mill operations wbjed to availability of employees to cover the vacariq,

ARTICLE XIX - SEVERANCE PAY

19:Ol A permanent employee with at least two years' continuous service who is laid off due to job elimination by Mamgement decision for such causes as more effident operation, change or ellminabon of a pmess, lack of orders, shall be pakl weiance pay if no job is available. Severance pay shall not be paid due to job eliminatim for such causes as fire, Aood, explosision or "Act of God".

Severam pay shall be pakl In accdance with the fdlowlng: (a) Severance pay shall be 2% of an employee's total earnings for his last full

mod of m i c e without intermpth due to lack of wM1(. Severance pay will not be paid to employees who resign or are discharged. Onehalf of this swerance pay is payak after the employee has been laid off due to job eliminalhn for a pwiod of hveive (12) weeks. The second half of the severance pay is payable after the employee has ken laid off a total of six (6) months. It shall be the respmsibility of the employee to make appllcabm for such severance pay.

25

(b) If recalled to work More the sevetance payment is payable, rx) wch payment will be made. Any employe refusing a recall shall foifeit his Mht to severance pay.

(c) I f an employe is recalled aRef having m&ed all of the severance pay due him, he will, as of the day of return, commence a new period of acrumubtion w h h will be credited toward any future byoff,

(d) I f an emploVee is recalled a b having received half of the severance pay due him, he will, upon return to wok, retain the right to the unpakl whh will be added to any new accumulatkm of severam pay.

ARTICLE XX - APPRENTICESHIP PLAN

2O:Ol following bades:

An Ontario Gowmment approved apprenticeship program will be &Mished In the

Millwright Heavy Duly Equipment Mechanic €kcbidan Sawfiler Others may be added as required.

The tergth of the apprenkeship progmms will be four work periods of 2000 hours plus all mandatory xhod periods.

The number of em- in the apprenticeship pmgram in each bade will be gowmed by the future manpower rquiremenb in the bade.

1. The program will be based on the Ontalio Gowmment's apprentkeship and Tradesmen's Qualiication Act,

2. Applicants must have a minimum of grade IO edmtkm M equivalent as required for a certified program. They will be required to submit to a series of apWlde tests to determine their suitability for the apprenticeship pmgram. When more than the required number of applicants pass the aptitude tests the sen& employee(s) shall be awarded the a p w n W p .

3. The tests will be administwed by the Director of Human Reswm, Wood Pmducts and the results will be kept in strid confidence. When an empbyee is informed that he has failed the aptitude tests he sh$ be given, upon request, the mlts of the Wng indieting tests passed and failed.

4. Om a person has been wccessfully tested for a particular trade he does not have to be tested again. I f he,& not selected upon his first application he may apply again in the future. I f he applies for a different bade which requires additional tests he will have to take the additional test.

26

5. The formal tralning pmgtam will be completed and the cett%cates of

6. Straight time wettime hours wlII appty towards the required accumulated time.

7. Some of the regulated bades programs will require MdikaUon to ensure that

8. Appmtkes must q u i r e a complete set of bade rebted took befwe 4800 warlc

qualifcation, both Government and Company, will be issued.

The Personnel Department will keep records of accumulated time for each apprentice.

apprentices b m tash required in the Nairn operation

hwrs have been ammulated.

9. There will be a shty (60) day probationary period for aY employees entering the a p p m h h i p pmgram. During this period, if the employee does not display the necessary aptitude for the partkular trade he may be returned to his former job without loss of senw. The apprentice must be Mwessful at the inschod apprenticeship ptugram In order to continue In the program. Two successkre hi lum at Khod will constilute a dissdution of any centrad between the Company and employee. Similarly the contract will be dssdved If the Advisory Committee recommends the withhdding of two successive pay lmses.

10. The Company agrees to pmvkk apprentices the difference between fcdy (40) hours at his regular rate and ally Government suMdls availabk while at the in-xhd pogram. All benefits will antinue during the' period the apprentice Is at school. The Company will provide seventy-he ddlars ($75.00) per week for mm and board In addition to the Gwemment compensation. The Company will further wpp+ all books or materials on loan to the appmtice In order to complete the required course.

The Campany is prepared to reimburse an emploVeee for mi!eage In aamlance with our diviskml travel pdky that states mileage is calculated from an employee's home or the mill, whichever is doser.

11. The pmgress of each apprentice will be recorded and kept on file in the Pemnel Department.

12. wages will be in accence with M u l e "A" altached.

13. The pmgram will be supervised by the Trades Training Advisory Commit@ which will mist of two members of Local 31-X, two members of Management, and a Chairman. The Chairman's position will be filled by the Director of Human Resources, Wood PmduCtS.

14. It is understood that the rate for the wmd, third or fourth peticd wlll not be pald until the apprentice completes the madam W i n g at the end of eaCtr perbd. If the apprentices xhod resuik aR swressful, all hours worked between the end of a pwiod, the time an apprenke goes to xhool, will be pald rates reboadive to the start of the period.

15. In a by off situation, those still on the property due to seniority will continue in OT be recalled to the Apprenticeship Program based on progress (accumulated hours) to date.

27

SCHEDULE "A" SCHEDULE OF WAGE RATES

FOR TRADES TRAINING PROGRAM

Millwrights Heavy Duty Equipment Mechanics Eledrkins Sawfilers

Four periods of 2000 hours

1st Period 1-2000 hours 2nd Period 2001-4000 hours 3rd Period 4001-6000 hwrs 4th Period 6001-8000 hours Completion of Program

Apprentice 1 Apprentice 2 Apprentice 3 Apprentlce 4 Licensed

28

ARTICLE XXI - AUTOMATION AN D TECHNOLOG-

The Company proposed this lntmductlon of an Attide aimed at addressing automation and techndogical change:

The Company Is conwrned about the Impact on employees and d i t l o n s of empbyment resulting from technological change, automation and change M elimination of a process,

A Joint Committee on Automation and/or Technological Change will be, established consisting of SIX persons, three selected by Management and three seleded by the Unlon. The functlon of the Joint Committee shall be advisory to Management and It will study the effects on employees, their employment status and their working conditions in the mlll, of changes resulting from automation and/or technohical change. The Joint Committee, among other things will consider early retirement, retraining, transfers to other jobs, as well as the availability of assistance from the various levels of Government as a means of assisting employees displaced by changes resulting from automation and/or technologlcal change,

Having concern for the Impad of such changes which may result In job elimination, the Company undertakesto advise the Union as far In advance as is feasible (not less than ninety (W) days) of such changes which the Company has decided to Introduce, which wil1,rewlt in significant change In the employment status of employees. The Company will Indicate, when notification of this technological change is made, which position(s) will be affected.

At such time, the Company wlll supply the Joint Committee, for its use, such information as may be required.

All persons who are employed with one (1) years continuous service who are set back to a lower paid job due to job elimination under conditlons set forth above, his rate shall be maintained for a period of SIX (6) months from date of set back. For an additional perfod of SIX (6) months, an adjusted rate will be established

midway between his previous rate at time of set back and the rate of his new job for each work week, which depends upon the operating schedule. At the end of one (1) year, the rate of the job to which he is assigned will apply.

29

1w MochankAmmnUu 2 7W 7 w 7 w 101 101 701 101 701 102 102 102 102 102 103 703 703 103 703 lo( 105 700 100 706 100 700 107 101 108 110 111 712 713 717 720 721 722 123 724 725 740 150 151 752 753 751 755 754 151 758 759 160 181 182 163 164

M o c h i n k A ~ n n U w 3 MrhanicAppnnUu 4 Mwhink CIrpmlw4qprmIiu 1

Elaclrlciin F l k - A p p n n l b 1 F i k -Appmn lb2 Fikr -Apprmtlw3 Flkr - Appmntia 4 Fiirr - L b n d Fllsr Purlitant Finu Miilwrighl4pprenllw 1 MiIlwriphl4pprinUa 2 MiihvdghtAppmnNa 3 M l l l ~ h t + p n n l l a 1 MiIIWrlghl- L b n w d Mbch&-Ugn#d Mlllwrighl- UnilunHd SWk - Unlianud Cialobier - Millwdghl C r a l r b i a - Elodrkal R r l k l Produdion Supr Bltbn MiliOpralor Cmwludrr - Filing Chow P k b r Oprl tor Chlplrffik Driver Pocialn Opralor Stationiiy Loldrr O p t Truck Drlvrr - Sn H M O ClMl Opralor G~IUIII Llbaurrr Lurnkr Rroviiy O p t Bin Man Butt sm opralor Chippar Canbr Oprm CMppr oprrror Clem Up P m n Slab Rrovw Oprm Dry Kiln Opritor RoInlry Oprltor Franmr I n 1 4 Mm Frinmr Opralor frarnar O W Man Qmnchaln Man Hood Sluhrr Opraicf Ducanner Oarator

1m.w $21.12 123.58 110.17 119.1l

$21.12 $21.58 119.17 $19.81 $20.50 $21.12 123.58 119.11 St9.82 120.50 121.11 $23.58 $21.12 120.50 110.18 $10.82 120.50 $21.12 $23.58 $23.58 121.58 $21.58 124.45 124.45 124.45 $19.11 124.45 $19.09 120.M $20.31 $19.89 $10.80 $22.U $19.17 $20.02 119.35 $18.39 $21.46 119.39 119.11 120.11 $20.20 $20.51 119.17 $20.31 $19.24 $19.21 $20.31 120.21

sm.80

$21.01 $21.35 $24.17 110.66

$21.01 $21.85 $2417 119.I5 110.31 121.01 I2 l .M 124.11 s19.s im.32 121.01 I2I.M $24.17 121.85 $21.01 119.85 $20.52

$21.85 124.11 $24.11 $24.11 124.11 125.w $25.00 S25.W 119.85 125.M $20.3

$20.33

$zi.ai

$10.17 $m.a $20.38 120.18 123.24 $19.85 $20.52 $19.0 119.81 $21.01 $19.81 $10.85 ~10.61 $an

(m.82

$21.08 $19.85

$19.72 $19.75 $20,8Z im.11

120.P $21.02 $23.80 $19.35 12o.w 12O.P 121.31 123.84 $19.35 im.w 120.88 $2I.M 123.80 419.35 $20.01 110.1 121.24 $23.W $21.31 $m.m 118.36 $m.ot $20.88 121.31 $23.84 $23.1 $23.80 123.84 $24.61 $24.81 124.81 119.35 124.87 $20.W $20.55 120.50 120.08 S2O.M $22..% $19.35 S20.M 119.52 1lO.M $21.81 119.58 d9.35 120.19 110.45 1m.75 $18.35 12O.M 119.41 $19.11 S2O.M $20.39

$21.31 $21.85 $24.51 110.03

121.31 121.95 124.51 $18.03 120.80 $21.3! $21.94 121.11 119.93 120.11 $11.31 $21.91 124.11 121.95 121.31 $19.93 $20.61 121.31 1 2 l . I 124.51 $24.51 $24.51 124.51 $25.41 125.41 125.41 $19.93 $25.41 $20.87 121.18 $11.11 $20.67

123.51 $19.93 120.81 $20.11

122.32 120.15 $19.93 120.94 121.08 121.M $19.93 $21.11

$20.03 111.11 J21.W

$m.w

1m.87

$20.15

$m.w

121.13 121.08 125.W

121.01 $21.73 s21.38 s25.w $20.32 121.01 $21.13 $21.1 125.W 120.32 $21.02 $21.73 122.1 125.w 122.10 $21.13 $20.32 $11.02 $21.73 $22.39 I25.W 425.W 125.w s2s.w 121.02 121.92 $25.92 $20.32 $25.92 121.1 121.59 $21.53 121.08 $21.08 $24.04 120.32 $21.22 $20.51 120.55

120.55 $20.32 $21.32 12I.46 $21.M) $20.32 $21.53 120.40 $20.43 111.53 111.42

sm.32

sz2.n

s21.11 $21.51 $25.50 $10.13 121.u 112.17 121.Y $25.50

$21.43 $22.11 l12.W 115.50 $10.73 121.44 111.11 (22.W $25.50 122.84 122.11 $20.71 s21.u $21.11 111.84 IW.50 $25.50 125.50 $25.50 11.44 $1.44 $20.44

11.44 $21.80 $22.02 $11.91 $21.50 $21.80 $24.52 $20.13 121.85 120.91 12O.W IW.21 S10.W im.73 121.14 $21.01 $11.24 $10.13 121.Ql smm $20.84 121.97

1m.n

sm.15

122.w $23.33 128.42 $21.46 $22.20 $21.98 $23.18 $28.42 $21.48 $21.20 $22.Y 123.85 $28.42 121.48 122.11 SUM 1W.65 $28.42 $23.0 121.M $21.46 $22.21 121.W 121.58 126.42 $28.42 126.42 $28.42 $21.39 $27.39 121.39 111.48 $27.39 $22.21 122.61 122.75 $21.27 122.21 $25,40 $ 2 1 1 $22.43 $21.87 121.72 $24.05 111.12 $21.48 121.52 122.70 $23.04 $21.48 121.75 121.55 121.58 $2215 $2263

161 788 789 no ni ni n 3 n4 775 n8 m 778 no 780 781 161 713 1M 785 7M 761 7 1 1W 191 793 194 796 197 1 I 199

741 742 143 744 10 10 747

JOE M p t b n Sept. Sept. bpt Sept. Mar.

766 LIR Oprdoflralnl-30) 119.11 $19.03 $19.12 120.11 $20.61 $11.03 $21.78 LIN Oprd.lTraln31d01 $10.61 $10.16 $19.86 $20.44 $20.86 $11.27 $22.03

CCdb

1.5% 38% 1.0% ?.OX

LlllOprd..Lumbrr Hdl.

Mark II OpHator Planer Mill I n W Man Runan Oprdor Stlektr Man Slkku Plww Trimmwman - L.L.M. Debarkm Opralor Twln Rtuw Operator Unllanud Grader utliity Oprrtor High S p d Slud Opr.

Wodw MlllOprltor TIN Hold OpHltor s1rIpp opmtor P w k q t MabrMprrtor bald. Pffmaaor O p t . Lie Oprd,-Lq Hmdlg. E l i t Scanner Oprdor Ulllliy Opnator4llvlna Flow P e r m PrimarySPr(rr Lmbr. SlrapprrWmppr Lumber WrappH Proestwr Truck Orlvtr Hndpull L o d a Oprd. Dry Klln L e d ' Llunaed 'E" Grader

LW PrOmta0r operdor

W d p Mill Eundlir

$19.69 $11.14 $10,58 $21.14 $10.01 $19.50 $19.21 $2020.9z s19.w $21.16 $19.51

$10.51 $19.18 $18.62 $19.17 $19.74 $10.00 $20.31 $10.80 $19.91 $10.51 $11.11 $33.01 $19.95 $19.63 $19.11 $10.01 $11.10 11l.xI

szo.13

$10.1 $12.28 s11.09 s22.a $Z(I.Sl $10.01 $19.75 $21.44 $20.39 121.m 12o.w $20.63 r21.09 S10.16 s10.11 $19.65 110.23 110.50 $10.12 $20.56 $20.44 S11D8 $21.11 $20.52 $20.11 $20.12 SlB.65 $10.51 $11.13 $21.03

$ 2 0 1 $21.93 $20.16 $21.93 $10.19 $10.17 $10.44 $11.11 $20.07 $21.45

$10.31 $20.18 $19.45 $19.80 $19.35 $19.92

$20.50 $lO.W $20.12 S20.lS $11.47 $20,20 $20.12 $19.81 $19.35 110.19 $11.30 $11.60

~ 9 . n

t10.ia

Sl0.67

$21.39 $22.50 $20.60 $10.56 $20.03 $11.11 $33.68 121.10 S2O.M $10.92 $11.39 $10.04 $20.3D $10.93 $20.51 $10.19 $11.11 $10.81 $20.13 $21.1 $22.12 $10.81 110.73 $10.40 $19.03 $10.60 $21.93 $11.34

w . s o $21.38 $2304 w.ai $1J,M $21.2f (ion $20.43 w a s21.w $12.54 $ i o n $21.34 $21.81 $10.44 I20.60 $10.32 $10.92 111.20 $21.53 $ll.W $21.14 $21.80 S 2 2 . I $21.11 $21.14 $20.81 $20.31 $11.11 $22.51 $22.19

$11.50 $23.61 $22.15 $23.51 $21.84 $21.18 $10.84 $22.62 $21.51 $zzDD $21.16 $11.16 $22.15 $20.85 $11.11 120.73 $21.34 $21.63 $21.97 $21.50 $21.56 $22.14 $23.01 $21.85 $21.56 $11.23 $10.73 $21.64 $11.82 U3.14

$21.27 5u.1 5w.08 $24.38 $??A? $11.95 $11.60 $2313 522.u $23.81 511.w $11.1 $23.06 $11.60 $21.98 $21.48 $12.11 $21.40 $22.76 $2221 $22.34 $13.04 $13.84 $22.43 $12.34 $21.99 $11.0 (12a1 $13.64 saw

.uluuwu

S w r $11.4 w o i tii.61 $ 2 1 , ~ ~ $1217 $13.11 $24.06 Mobllb Equlpmtnl $20.15 $10.65 $10.33 $20.91 $21.36 $21.19 $22.57 MachineOprdor $33.15 $10.15 $20.33 $20.94 $21.31 $21.79 $11.51 Lop Pnpardlon $10.15 $10.15 $10.33 $10.94 $21.1 $21.79 $22.87 Mb2hlnbOpfrtOf2 111.75 $12.19 $21.94 $21.110 Sl3.W $23.51 $24.1 Lhum-JobRdaUon $20.15 $10.65 UR33 $20.91 $21.38 $11.79 $22.11 Lluniad Orader. JobRN $22.20 $11.75 $1240 $23.07 $23.53 $14.00 $14.1

' M. BPulllon -~ ~~ ~~ ~~

NOTE RATES REFLECT PENSION CONTRIBUTION

31

NAIRN CENTRE SAWMILL SENIORITY UST

Employes Ranking Seniority Telephone �um�[ tymg .12!1!

--� 5 1 01/06/63 13 2 07/01/64. 869-3580 15 3 11/02/67 869-4054 17 4 31/05/67 869-4265 20 5 02/02/68 869--1288 22 6 21/08/68 869-4178 23 7 20/09/68 869-2970 24 8 04/11/68 869-2823 26 9 06/01/70 869-5029 27 10 14/09/70 377-5349 30 11 18/12/70 869-1067 31 12 18/03/71 869-2442 34 13 18/01/72 256-7218 39 14 15/01/73 869-4943 57 15 16/04/73 869-2«>9 77 16 03/05/73 869-2748 86 17 18/06/73 869-0137

91 18 22/06/73 869-51-41

97 19 10/07/73 869-1762 114 20 31/07/73 869-4657 115 21 08/08/73 869-3160 125 22 04/09/73 869-4336 128 23 04/09/73 869-5941

138 24 01/10/73 869-4104 139 25 02/10/73 869-'1557

144 26 07/01/74 869-3220 159 27 08/03/74 865-3257 170 28 18/03/74 869-4375 174 29 02/04/74 522-3763 191 30 24/06/74 869-4787 198 31 11/07/74 866-2489

205 32 19/08/74 869-2292 213 33 16/09/74 981-9568

219 34 07/04/75 869-6135 226 35 07/04/75 869-2200 232 36 21/04/75 86&0481 243 37 12/05/75 86�923 244 38 12/05/75 869-3709

247 39 06/05/75 869-4011 258 40 12/05/75 869-0419 248 41 20/05/75 692-5325 260 42 20/05/75 869-1085 301 43 21/07/75 869-2659

32

Employee Ranking 5enlOrftY JelepllOne numa Bumlar ffDmc � ff11mlll[

305 44 05/08{75 869-4581 314 45 18/08{75 859-2365 329 46 02109{75 869-5928 332 47 02109{75 869-4617 340 48 02109{75 869--1074

355 49 22/10/75 869-2769 353 50 24/10/75 368-3039 351 51 27/10/75 859--3097 361 52 05/11{75 869-2084 375 53 23/02!76 ssg.2341

378 54 23/02!76 859-2414 379 55 23/02!76 862-7070 399 56 10/03/76 869-1451 404 57 15/03{76 86�31 411 58 15/03{76 869-1548 419 59 15/03{76 859-3976

446 60 23/03{76 368·3151 451 61 26/04{76 865-2516 401 62 29/04{76 983-1055 467 63 13/05{76 869-2736 481 64 07/06{76 869-4755 225 65 10/06/76 869-2424 <194 66 21/06{76 859-3258 496 67 21/06{76 866-0105 516 68 19/07{76 865-3025 521 69 29/07{76 865-2069 527 70 17/02/77 3n-4736 559 71 21/02/77 869-1750 562 72 21/02{77 869-1767 574 73 28/02{77 869-1595 582 74 08/03{77 869-0339

585 75 08/03{77 865-3154 193 76 10/03/77 869--2568

600 77 25/04{77 862-7611 608 78 27/06{77 869-0251 611 79 03/08{77 869-1871 613 80 08/08{77 862-7402 619 81 18/08{77 869-2923 621 82 24/08{77 862-7619 623 83 29/08{77 865-2446 628 84 06/09{77 869-4273 629 85 12/09{77 869-4353 640 86 13/09{77 869-0438 650 a7 11/10/77 692-9186 651 88 11/10/77 865-2980 664 89 02/11{77 869--6165

33

Employee Ranking Seniority TeJephone �11mbet ftllmblr fillDI .Date 1t11mmu

90 07/11/77 692-1514 679 91 20/02/78 865-2368 685 92 10/04/78 862·7874 695 93 30/05/78 522-7072 699 94 02/06/78 869-0100 700 95 05/06/78 869-1017 709 96 29/06/78 855-8131 731 97 06/11/78 855-3871 732 98 10/11/78 69+3372 739 99 25/04/79 000-0000 744 100 23/05/79 869-4n9 748 101 06/06/79 859--2788 728 102 11/06/79 865-3484 751 103 11/06/79 869-6951 757 104 04/09/79 368·3108 759 105 17/09/79 865·2984 768 106 15/10/79 869-0299 769 107 15/10/79 869--3786 770 108 15/10/79 869-5511 779 109 04/01/80 869-0338 780 110 07/01/80 869--0245 781 111 28/01/80 869-2694 786 112 13/02/80 866--0460 789 113 20/02/80 866·2177 790 114 21/02/80 869-5083

791 115 25/02/80 869-2688 793 116 04/03/80 869-4697

597 117 09/06/80 86�99 724 118 16/06/80 869-1017 803 119 05/08/80 865-3085

811 120 10/09/80 855-9812 812 121 10/09/80 869-4032 814 122 15/09/80 869-4026 816 123 20/10/80 869-4385 818 124 18/11/80 869-4091 820 125 02/02/81 869-5732 821 126 05/02/81 368-3890 822 127 05/02/81 368-3667 823 128 05/02/81 670-9257 826 129 18/02/81 368-1872 828 130 11/05/81 285-{}650

829 131 19/05/81 983-2328 839 132 15/07/81 560-1378

842 133 30/03/83 866-2425

34

Employee Ranking seniority TellPftQne Number Number &ml 9111 Numlalr

844 134 30/03/83 869--5222 845 135 30/03/83 692·3200 848 136 16/05/83 693-3058 851 137 25/05/83 869-4427 853 138 06/02/84 869-3475 854 139 06/02/84 869-3019 857 140 13/02/84 869-0648 858 141 13/02/84 869-5720 861 142 14/02/84 869-3682 862 143 27/02184 869-1582 865 144 19/03/84 869 4467 867 145 20/03/84 869-3306 868 146 17/04/84 869-4484 870 147 17/04/84 673-4801 871 148 17/04/84 866-0121 873 149 18/04/84 869-5484 874 150 18/04/84 869-1908 875 151 23/04/84 869-4654 876 152 23/04/84 869-2539 877 153 23/04/84 368-3688 878 154 23/04/84 869-1047 686 155 18/06/84 869-3249 896 156 20/07/84 626-1837 901 157 15/10/84 692-4631 902 158 22/10/84 869-5349 904 159 19/11/84 869-1636 907 160 20/li/84 865-2346 910 161 27/11/84 ssg..0112 914 162 15/04/85 869-2678 924 163 29/05/85 285·0512 947 164 03/07/85 869-6528 949 165 08/04/86 865·3423 983 166 08/09/86 869-5149 989 167 08/09/86 692·0915 993 168 24/09/86 523·1997 998 169 12/03/87 869-6612 997 170 16/03/87 869-1690 1034 171 03/09/87 869-3855 1030 172 04/09/87 869-4505 1031 173 08/09/87 368-3134 1036 174 10/09/87 869-6075 1039 175 10/09/87 358-2328 1040 176 10/09/87 869-5634

35

Employee Ranking Seniority Telephone

Number Number lHma � Number

1042 177 10/12/87 865·3465

1029 178 15/03/88 865·1011 1048 179 18/03/88 869-5528 1049 180 21/03/88 869--2270

1094 181 213/10/88 869-1382

1098 182 14/11/88 368·3814 1099 183 14/11/88 869-2094 1102 184 28/11188 869-5443 1103 185 28/11/88 869-4258 1104 186 28/11/88 869-5493 1140 187 06/09/89 869-5669 1149 188 13/10/89 866-0908 1153 189 17/10/89 869-5273 1159 190 19/03/90 869-6768 1184 191 15/02/93 869-4627 1194 192 16/03/93 869-3083

1207 193 07/06/93 866-0343 1238 194 14/10/93 869-3339 1241 195 31/01/94 866-5139 1242 196 31/01/94 86g.1496 1243 197 31/01/94 869-6771 1245 198 31/01/94 869-3019 1246 199 31/01/94 865·3481 1247 200 31/01/94 869-0235 1248 201 31/01/94 869-6200

1253 202 18/02/94 869-4186

1254 203 03/03/94 844--2729 1274 204 23/02/95 869-5921 1278 205 23/02/95 866-1507 1327 206 13/01/97 869-0466 1329 207 31/03/97 869-0780 1360 208 02/07/97 692-0956 1378 209 01/02/99 285-0728

36

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

SCHEDULE "D"

LEITERS OF UNDERSTANDING

Weekend Maintenance Schedule Filling hb Postings re Artkie 1207 Layoff & Recall after layoff Floating Holidays covefalls Disputed W.S.I.B. Claims Weekly Indemnity Meals Electrical Maintenance Posted Back-up Positions Climatic Controls Hours of Work Overtime Distribution Overtime Welding Lumber Gmders Management of the Labour Pod Management of Technological Change Extended Production Schedule Four Crew Maintenance Schedule Job Groupings Sevetance Pay Special Downsizing Retirement Window

Ei!m!&

38,39 40 41 42 43 44 45 46 47 40 49 50 51,52,53 54 55,56 57 58 59,60 61,62 63,64 65,66 67

37

DOMTAR INC. NAIRN CENTRE SAWMILL

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LEITER OF UNDERSTANDING RE

WEEKEND MAINTENANCE SCHEDULE

Permanent vacancies: 1) When permanent vacandes m u r in the regular work force the maintenance

employees Worwng the weekend M u l e will be allowed to bid on hse vacancjeS (as per A& 12:07),

Empbyees wwking the weekend maintenance schedule will be allowed to pkk-up their pay cheques earlier on Thursday, when avaibk.

Weekend maintenance employees will be used to supplement q u b r rn fw vacabns, skkness OT acddents onty when necessary.

Weekend maintenance employees required to work on a Statutwy Hdiday could be paid the following ways: a) Receive time and one-half only for time wMked and bank eight hours or one day, It is to be understood that bank time taken must be taken at a time agreeable to both parties and that whde days must be used. b) Receive pay for day wwked as per Artide 7:03.

Pay cheques: 2 )

Vacation, Sidolesr; or Acddents: 3)

Statutory Holiday Pay: 4)

5) Weekend maintenance schedule employee's vacaths will be scheduled by weekends.

38

work Scheduk: 6) It Is to be ui&rstod thatthe hoursof workwwld be asfdlows:

a) Friday, 7 a.m. to 3:30 p.m., mealtime excepted. Saturday, 7 a.m. to 130 p.m,, mealtime except&! first 8 hours. Sunday, 7 a m to 7:30p.m., mealtime exceptd first 8 hours. b) Saturday, 7 am, to 7:30 pm,, mealtime excepted first 8 hoursa Sunday, 7 a.m. to 7:30 pm,, mealtime excepM first 8 hours, Monday, 7 am to 330 pm., meahme excepted,

It is further understoad that the last4 hours of workon Saturday and Sunday will indude a 20 minute paid lunch period.

7) he Company ad the Union accept ttie principal that the intent of the maintenance wen day Xheduk Is to eliminate ouMe cantractors doing m i maintenam work, The Company will strive to uphold this principal during the life of this agreement.

For the Company For the Union

39

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKEW UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LETTER OF UNDEMANDING RE

RLUNG JOB POSTINGS RE ARTICLE 1207

It is agreed that for pmanent wndes, the wmsful, senior empkyee of the applicants to fill the vacam/, as per edsting daw I2M, will be gwn preference to any junior emme pmvded that:

(a) He had occuped that job previausiv and k qualified to meet the job requirements, or, (b) shwld bainlng be required to meet the jcb requirement, he will be allowed the necessary time of Wining, or (c) He has qualified to do thepb. (1) There will be no limihtim ar upward Mbility. (2 ) lateral or down bidswith refmxetojob postings will be limited to one w a e d bid per s b c m o n t h ~ .

When an employee Ms down, prior to acceptam of the M, discussions with the Union may take $ace to r e k t the effect on the opemth.

If the effect of lateral or down Wing seriou4 afk ts the operation of the pbnt, the Company and the h i Union agree to meet immediateiy and sdve the p d e m .

The local U& commit& will be advised of the wimsfui applicant prior to placing the employee on the ]ob.

A junior q w l i i emwee may fill a vacancy temporarily while another empbyee is being trained.

For the Company For the Union

DOMTAR INC.

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LEllER OF UNDERSTANDING RE

LAYOFF & RECALL AFTER LAYOFF

NAIRN CENTRE SAWMILL OPERATIONS

(1) PeoC retaln the right to thelr last waessful bid upon job dassificabbn during a layoff situation. This becomes their "regular" clarrification.

(2 ) While awaiting return to their "regular" job dassification +key may bid, and f SKC&II~II another vacancy, When a position in their "regular" dasMcation cam open, due to recall and thelr sen'hity allows It, thq wlll be offered the one time cham to rehrn. If rejected, their new classification becomes their "regubr" classification.

(3) AnyjAdassifkation whkh requires an additional emploVee wil not be posted as a vacancy unless there are no peaple remaining that have been dspbced from theb "regular" dassikatkm dw to layoff. I f there are no p o j k as above, the classification wlll then be posted as a permanent vacancy,

(4) Should an employee leave a job he had s ~ f u l l y bid upn, to rehm to his "regubr" danikation, that jd, will be posted as a vacaw unless In that dassificatm are a la available due to layoff.

For the Company For the Union

41

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKEM' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LElTER OF UNDERSTANDING RE: FLOATING HOLIDAYS

In attempt to distribute Rmting holidays as fairly and as nummus at one time as possible, the following has been agreed to:

On any given day, flcatws will be allocated by Company wide seniority but withln operatanal areas. All requests must be on the PeMnnel Supelvisor's desk at least three (3) day; pwkus to the requested Roater.

Floaters will be allocated in the operafmal areas as follows:

3 Shift Qpecption

DW shii, two off

2 Shift Omtion Woodyard, Pmcessor six in total-one Four in tobl-ane &Small Lw Mill w shiR, two off

Planer

a b 4 pm-8 am

Three in total one per shift

after4 pm- 8 am

Two in total one per shift

Debarker & Large Lcq Two in total Two in total Mill one per shift one per shift

Chip & Hog Fuel Driwrs ' One One Elecbidans OW One Milhvnghb & Set-Up Two plant wide Two h n t wide Men Mechanics OW One Filers Q!E Q!E Total 17 14

This has been agreed to in the test interest of all personnel invdved, however, it in no way is intended to d\arqe the existing L a h r Agreement.

The cwpwab'on of all employees and supervisory personnel is requested to make this system Work.

For the Company For the Union 42

DOMTAR INC, NAIRN CENTRE SAWMILL OPERAllONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LETTER OF UNDERSTANDING RE

COVERALLS

The Company wlII supply tradesmen, that Is, carpenters, millwrights, mechanics, dectridans, filers and utility operators with suitable coveralls as made available by a suw senice of Company chake. FiRy percent (WO) of the cost of the laundering will be tcfne by the employee.

Each employee wcukl have a set of five (5) werails for his pmml use. He wou!d be iswed a dean pair of cuveralls each week upon return of this soiled pair, The Company will pay the full cost of laundering one (1) pair of coveralls.

The individual employee will be q x m i b l e for loss p damage to the mlls for m i wear and tear; however, coveralls damaged by unforeseen dramstances kymd his conbol will be qplaced by the Company after Inqxtbn.

Insulated coveralls will be supplied by the Company when required, the cost of laundering will be paid by the Company.

For the Company For the Union

43

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LElTER OF UNDERSTANDING RE

DISPUTED W.S.I.B. CLAIMS

It is understaod that when delays in excess of fifteen (15) days mi in Workers' Compensation payments due to a dispute, the Company is prepared to advance an employee two weeks benefits to be repaid when payment is received. It is understood that the two week payment will be equivalent to hvo weeks of Weekly Indemnity benefits. It is further undersbood that ewcy two week after the first advance a further two week advance will be issued until such time as the dispute is settled and the compensatbn payments begin.

If a Wokm' Safety and Insurance Board h i m is denied, repayment to the Company will be made when the empbyee tweives payment through Weekly Indemnity.

The fifteen (15) day penod will begin hm the last day worked.

For the Company For the Union

44

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LEllER OF UNDERSTANDING RE

WEEKLY INDEMNIlY

It is understood and agreed that any employee pked under a quatantine d w to either contact with 01 suffering hom a communicaMe disease will be covered by Weekly Indemnity. It is also understoad and agreed that any employee who is off work for treatment due to a l a M O( dmg a d d i m and Is under the care of a licensed physkian will be covered under Weekiy Indemnity. The n m l three day waiting period will apply.

For the Union For the Company

45

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

NAIRN CENTRE, ONTARIO

LElTER OF UNDERSTANDING RE

MEALS

Arrangements have been made with a restaurant to deliver meals to the Sawmill. The meals will be in a styrofoam container and bansported in a thermal box.

The Company agrees that, unless nob%& the previous day, an employee who is required to work a minimum of two (2 ) burs bey& his regular hcurs will be pmvded with a meal at the Company's expense. Aftw the provision of the first meal, under this Sxt& a hot meal will be provided evey four (4) hours thereah at the Company's expense.

Employees who agree to work for at least twelve (12) hwrs in a day (exduding weekend xheduled maintenance m) will be prow with a meal alter eight (8) hcurs. If an employee continues to work aRer twelve (12) hours, he will receive a meal every four (4) hours after the first me,

The Company will make amngements to have a voucher avaibbk for a meal on the same day that it was earned for those employees so requesting.

The Company will provide rehigerators and microwave Ovens in the fdlowing recognized lunch moms:

AND ITS LOCAL 31-X

1) LargeLog Mill 4) ElectricaiShop 7)Garage 2) Filing Room 3) Planer

5) Small Log Mill 6) Processor Area West

& hocessor Area East lunch mom will be in the Small Log area.

For the Company For the Union

46

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LE'ITER OF UNDERSTANDING RE

ELECTRICAL MAINTENANCE

It is the p d i i of the Company to have rx) m but elecbidans p e i f m maintenance work on elecbkal equipment

Only trained electrical personnel are permitted to reset inside an elecbical pand.

FortheCompany For the Union

47

DOMTAR INC, NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LEllER OF UNDERSTANDING RE

POSTED BACK-UP POSITIONS

The Company agrees, for employees who have accepted agreed to posted W-up posibm, when a permanent wncy OCNK in that position, the seniar back-up empbyee will be promoted to fill the wnq.

For the Company For the Union

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LElTER OF UNDERSTANDING RE

CLIMATIC CONTROLS

The Company agrees to install "Climatic Controls" in the following vehides: #814,817,821,832 839 and 845 by June 1,1989. Furthermare, the Company agrees that new mobile equipment purchased in the future, where feasible, will be quipped with "dimak mtrols".

For the Company For the Union

49

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LklTER OF UNDERSANDING RE

HOURS OF WORK

The fdlowing is the Company's interpretatbn of 11:05,3rd paragraph:

An employee called out for overtime work will be paid a minimum of four hours at time and half or eght hours at time and one-half for emploVees working more than four hwn,

An employee previously requested to work overtime before the start of his regular day 01 shift will be paid time and onehalf for hours worked prior to ule commencement of his regular day 01 shift.

Far the Company For the Union

50

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LETTER OF UNDERSTANDING RE

OVERTIME DISTRIBUTION

A.

An overtime oppmnity will first be offered to tfiose employees scheduled on that piece of equipment on the opposite shit(s) with the lowest overtime.

If unable to obtain an employee, then the overtime opportunity will be o f f d to those employees within the dasskabn but on a different piece of equipment. The offer will be made to the employee@) with the skill and ability to perform the work (not requiring any balning ol orientation) with the lowest amount of accumubted ov&ime. The exception to this general rule is the Loader and Millwright occupahs.

If still unable to secwe an emwee to work the overtime needed, then the supervisor will canvass the general departmental workfom who possess the skill and ability to perform the work (not requiring training ol orientation). The offer will be made to the seniol employee($) with the lowest accumulated overtime.

Where the Company has avoided omtime by assigning bbm to meet its need and an insuffkient number of labourers are available thereby necesbting an owrtme requirement, the overtime in such arcurnstam shall be offered to employees in the classrficabm with the least numbw of overtime hours wMked month to date.

Equalization of overtime as dexn'bed in i) above shall be effected daily; shall be based on time actually agreed to work (not MI the basis of time eamed waked) and shal occur amongst employees in thetbssificab in whlch the need for overtime arises.

B. !sax&&u

i) As used thtwght this document a dasslfuation means the job encompassed by the specik oaxpabn code and rate established therefore as set out in schedule 'B" to the cdleaive agreement and such additbnal classifications as may mutualiy agreed to by the Union and the Company.

51

ii) For the purpose of this document an employee's dassific.ation Is the dassitication to which he has been scheduled to work for the week.

iii) For the purpose of this document an employee who has been transferred at the Company's request to another dassification for the majority of his worl<day, shall be coosidered to fall within the dassitication to which he was transferred and not the classitication from which he was transferred for the purpose of overtime distribution as provided for above.

C. Weekend Overtime Lists

A sign up sheet will be posted in the Security Office e.ach Monday at noon. Employees wishing to be considered for any weekend overtime must sign this list. Employees may indicate whether they wish to be considered on� for opportunities in their department and/or plant·wide. They may also indicate their desire to be scheduled for 8 or 12 hour shifts.

The list will be taken down each Thursday at 7:00 A.M.

Those employees shown on this list will have their accumulated overtime hours added beside their name. Toe overtime hours to be used for each employee will be those in the Company's payroll system as of noon on Thursday.

Based upon the relative accumulated overtime for each employee any weekend overtime work available will be assigned to those employees listed. This overtime will be work falling outside of a dassification scheduled for a given week to be performed on the weekend. It is further understood that these overtime lists are for the sole purpose of determining availability of �mployees for weekend overtime and for providing the equalization of such overtime.

Assignments will be based upon each employee's skill, efficiency and ability to perform the required assignments.

Toe finalized list will be posted by 2:00 P.M. Thursday at the Securtty Office. Departments will also be sent a copy of the assignment sheet for posting. If the Company's requirements for overtime change, an amended overtime schedule will be posted by noon on Friday. If an employee is affected by a schedule change after the list is posted on Thursday s/he will be notified. An employee scheduled to work on the weekend will be charged the corresponding hours at the time for the purpose of additional overtime distribution.

52

Any employee shown on this posted list must obtain the supetvlsor's permission before the shift starting time, i f k y are UM& to attend WMk. When such is not possible, the employee my use the estaMished W of a h reporting thmugh the secwitv d e p a m t , EmploVees not reporting for WMk as xheduled will be dwrged the mpond ing number of overtime hours except when the Company c a d s the overtime that had been M u l e d .

Any W m e worked by those em* on the list a b manight of each Wednesday that was not knc~ at m on Thursday will not be ansidered In the disbibutlan of overtime for that weekend.

The overtime hours in the Company's paydl system will be deemed to be accurate for the purpose of this pmcedure. In addition any overtme assignments that have been accepted but rot yet worked by an employe will be added to their accumulated overtime shown on the Paydl system.

For the Company For the Union

53

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 32-X NAIRN CENTRE, ONTARIO

L m E R OF UNDERSTANDING RE: OVERTIME WELDING

It is agreed and understood that when there is nmstnrcturai, ie. Wight Rat W i n g required such that conbwtws would otherwise be utilized (as per artide and z;pub) then our empbvees wwM be eligible for that work under the folbwing conditions:

To be eligible, 1, 2. 3. following gmups, prom that they are also rot on their q u b r shk

the poWm(s) will be posted as re: art& 12:07 the employee must rot be on their regubr shii the overtime wwid have to have been offered first to people within the

1. *w* 2. appreniice tradespeople

' hsed on anticipated requirements: this group wiil be limited to a madmum of five (5) people - distribution of ovettime welding within this group will be based on equalizaW~.

While the employee is performing welding, Wshe will be paid at the

The employee will receive the reasonable on site training necessav to perfm these duM.

When an a!JorenW b a d e s m is performing welding, they will receive the higher welding rate for unscheduled ovetime.

a m & GI$.

For the Union For the Company

54

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS’ UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

LETTER OF UNDERSTANDING RE: LUMBER GRADERS

For E.B. Eddy to retain perml$m by C.LA. to use their license, grading pm%€B must be h compliance to their IUIS and guldellnes - loss of the license would dlinlnate opportunlte to market our lumber.

The grader dassificatian cannot be wmpmmised for any reason and in order to ensure rmsistent quality and customer satisfaction this &e- of understanding states

Terms agreed upon In thls letter pertain to graders Q& and are not applicable In any way to any other opetam.

For the purpose of this letter, C.L.A. lkense relates to &ss A & B without disUlXfiM1.

1. Only licensed g& will hold a permanent bid; other openings will be filled from the recagnlzed “Back-Up” bid by seniority. Licensed graders will have priority In Grading; as of the date of this lettw of understanding. The licensed grader rate will onv be pad alter a C.L.A, license Is obtained and balnlng complete.

In a by off situatim when more senior (non graders) emploVees would be bid off, senior non-bid licensed graders will be msiered to fill grader requirements (by way of a temporary bid) providing such lndlviduals can fulfill the baining requirements in the agreed-to desigmted time; training to be conducted as stated beh. (3)

When a lay off is deemed to be longer than 10 week, (qual to the baining period), the more senlw lxyl gra& who would otherwise be bd off will be given an opptunity to bain and work as a gradw for the duration of that by off (similar to tempmy kid in 2 a), above).

2. a)

b)

55

3. Training for !&v grader bids will be:

week one - mdy C.L.A. grading N!S regulations with minimal on-line baining

week two - Same as week one with i m a d 6me on the tak

week three- on table most oftimeas extm grader t o v i i procedures and practh rules

week four - week long C.L.A. baining with the C.L.A. test

C.LA. Test: I f unswcessful, repeat week one through four ptiar to CLA. testing and if unulcceSSful again then the penon is rehrmed to pfeviousjob and may am for the grader tid miy upan the next posting.

4. "6" l i cend graders will be mquired to write each C,L,A. test until the "A" lim is obtained. A permanent bid gmder within the classiliation will remain on the table until a h 2 consecutjve failures of the C.L.A. tests - baining will k suppli to ensure idduds are propedy prepad.

5. A QUALITY/GRADING COMMmEE will be &Mished to maw$ the baining progiam and any quality c m w i n g ; the dass "A" license recognition will be a high plioritv project.

For the Company For the Union

56

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

AND ITS LOCAL 31-X NAIRN CENTRE, ONTARIO

L m E R OF UNDERSTANDING RE

MANAGEMENT OF THE LABOUR POOL

Once the mannlng schedule has been compkted Wedneday and all pbnned vacandes of a week's dutabn for the fdlowing week have teen filled, four addiWl emploVees wlll be assigned Into the s$ledu!e.

The Labour pod will mnslst of fwr employees. The ern* in the labour pool will be asslgned to a specific shift fw the wok week and shall be ubliued by departments based on need. The employees in the labour pool shall be assigned to a weekiy work xhedule In an equltlbk manner.

These em- wlll be available far wotk assignments planhv'kle.

If fewer than bur (4) employees are left in the labour pod aRer the plawd McM6es have been Rlled, ttwe is no requirement to hire ~1 addlkml em@yes.

This understanding does not a p h to students.

Once the following steps have teen compieted and there are sbil em- in the labour pcd who have not been scheduled, bey will be given their notice of bwff as per Artide 1203.

For the Company For the Union

57

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS' UNION

NAIRN CENTRE, ONTARIO

LEITER OF UNDERSTANDING RE: MANAGEMENT OF TECHNOLOGICAL CHANGE

AND ITS LOCAL 31-X

The Company and the Union recognke that techrologlcal change, while m r y to the industry, may haw an impact on m n p o w and empbyment levels. In order to address these c m s , the parties agree to the following guidelines in addressing techndogical changes.

Technological change means the inboduction by the emmer in its operatiw of equipment different in nature, type or quantity horn that prevbudy utilized by the employee, a charge in the opetabon related to the inboduction of that equipment 01 a modification of existing equipment cumtly in use in the workplace which affects one or more employees,

Any disagreement as to whether or not a mnpower r e d h n is abibutable to khndagkal change shall be sub@ to the g W a w pmcedure. It is understood that any grievances of this nature will be dealt with in the same fashion as a dixhaqe case.

For the Company For the Union

58

DOMTAR INC MRNCENlRESAWMIUOPERAnONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS

UNION AND m 1- 31-X

NAIRN CENTRE, ONTARIO

EITER OF UNDERSTANDING RE

EXENDED PROWCnON SCHEDULE

4.

5.

This Letter of Understanding will supersede the provisions of htkk 11:Ol (a).

Artide 11:05 will be deemed to be amended to read:

'Tme worked outslde an employee's scheduled shift or wwk week and the fust eight (8) hours ~1 Sunday shall be paid for at the rate of time and onehalf. hb!e time will be pald aftw elght (8) hwrs of wwk on a Sunday, except for production employees sdreduled to the twelvehour production schedule."

Article 1601 will be deemed amended to read that the p r o v i W of this Mde will provide for payments as stipulated @ed that they do not exceed faty (40) hours per week for an immediate hmik member and twenty-four (24) hours per week for the remaining individuals ated.

Artide 17:Ol will be deemed amended to read that in the case of an e m w e e who is called for jury service, subpmaed witness or crown witness, the Company shall pay for each day of service, an allowance equal to the difference between the employees xheduled hour; of work for that day based on his regular straight time hourly rate and the payment he received far jury selvice up to a maximum total of forty (40) hours of wwk for the week.

The parties agree that there shall be no differentiating between the'Friday to Sunday' productkm crew and the 'Monday to Thursday' production vew for the purpose of exwdsing the rights of employes under Artide 12 and othws.

Floating holidays as stipulated in Article 7:Ol will be deemed to equal eight (8) times the employees regular Wight time wage.

The parties agree that there shall be two ten (10) minute coffee break, for the ten (10) hour shift xhedule. There shall be a twenty (20) minute paid lunch break and two ten (10) minute coffee break on the twdve (12) hour schedule.

When the Company is successful in implementing a continuous operam thrwgh the coffee break period, the Company is prepared to schedule a third ten (10) minute coffee break on the ten hour shift xhedule.

6.

7.

8.

9.

10.

For the Company For the Union

WMTARINC. NAIRN CENTRE SAWMIU OPERATIONS

AND ~MMUNICATIONS, ENERGY AND PAPERWORKERS

UNION AND ITS UlCAL 31-x

NAIRN cENTRE#oNTARIo

LEITER OF UNDERSTANDING RE:

FOUR CREW MAINTENANCE SCHEDULE

The pam agree that this Letter of Understanding and spnfic prv&hs dted bekw Shal dentify, amend and supersede the colledive A g m t as itrebbesto a Fwr Cm MainbeMnce schedule. The partks agree that the provlrcns ofthis Lelterofunderstandlngcan b e a d by mutual agrement

1. The malnteMnce skedukwi! havefwraews; a day m wll be Wukd hom ROO a.m. to 7:30 pm, mealbme excepbed. A night oew will be schedukd fnnn 200 p.m. to R30 am., mealbme euxpted and W carry a ShHt dffembal of $0.57 as p e r t h e a W work-.

Ern- wlll be paid bme and one half hal l hourswollced on Suntby up to hvdve (12) han.

Art& 7 0 2 (b) vdl b e d e e d to be amended to read:

"Houdy employes will be compensated fw q h t (8) timesthek houdy rate hthe day of the swubry hdlday Ctky are rot sckitkl lo M cn that day. If the empbyeewas#heduledtoworkon the StaMory Hdlday hewill =the equndmt amount of his qubr M ' s pay. If he was requlredto work on a Stnutory Ho#day he mk pay far the day worked as perm 203 M reoeiue~meando~~fartime~aildweIght~M~&~ It is wderstood that thebanked time taken must be taken at a time agmble to both p a ~ a n d ~ w h o k d a p must be used,"

This Letter of Understantlmg will supersede the pwlslons of Arbkk 11:Ol (a)

2.

3.

61

4. The first pamgraph of Arwe 11:05 will be deemed to be amended to read:

"Time worked outside an employee's xhedukd shift or work week and the first eight (E) hwrs on Sunday Jlall be pdd fw at the rate of time and cnz-haif. Double tlme will be paid after eight (8) hours of work m a Sunday except as pmided in #1 a h . "

Mkk 1601 will be deemed amended to read that theprovisionsofthii Arwe will pmvide for payments as stipulated p m v i d e d that th?y do not exceed fcdy (40) hcun per week for an immediate bmily member and twenty-four (24) hours per week for the remaining individuals dted.

1791 wil be deemed arnendedtoread that in the case of an empbveewtw is called for juty selvke, subpoenwd witness or mwn witness, the Company shall pay for each day of service, an allowance equal to the difference between the employees scheduled hours of work for that day based on his regular straight time hwtiy rate and the payment he received for jury mice up to a maximum tolal of

Floating holidap as stipulated in Artide 7:Ol will be deemed to equal eight (8) times the employees regular straight time wage.

The parties agree that there shall be a twenty (20) minute paid lunch break and two ten (10) minute coffee break cn the twelve (12) hour schedule.

5.

6.

folty (40) hours of work for the week.

7.

8.

For the Company For the Union

62

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS'

UNION

NAIRN CENTRE, ONTARIO

LEITER OF UNDERSTANDING RE:

308 GROUPINGS

AND IT LOCAL 31-X

Pne parties agree to the folbwing pmisions in d e r to facilitate the implementation ofthe New b b Gmupings. lhe pa- agree that if at any time during the durafh of the current Collective Agreement a significant pmblem or colxem arlses or a new poslta Is created, the parties agree to meet and discuss the issue fully. Where mutually agreeable, the parties can amend the Job Gmuplngs detailed within the Letter of Understanding.

1.

2.

3.

4.

5.

6.

All employes within a p$rtkular lob Grouping will fully paMpate in the jcb rotatlan unless a partkular em&= has prwided the Company acceptable documentation confirming his inability to pertorm a particular task(s). Such employees will rot receive the Wzg? Rate for ule J ~ I Grouping but would rather be paid in accOrdance with the previous darslRcatlon sbucture. The Company will ensure that all employees are fully trained under the cumt training mechanisms, including health and safety pi-& to being deemed as qualikd on each and every former job dassikatbn in a particular MI Gmupng. Em- shall receive the Job Grouping Wage Rate immediately. At the time of posting a vacmy within a particubr 3ob Grouping, the posting dl reference the spedfic vacancy from the former classificata sbudure and the partkular job cbs9fkaCi~s contained within the Job Gmuping, The rotation xhedule within a partkubr lob Grouping will be determined by the e m p l o p within that lob Grouping and as agreed with the epxtive wpervlxw. As a general ptinciple such rotations shaN occwollce per qwrter shih The Job Groupings will as presented by the Company. The'New' Log PreparaUf~

sklls and transfembility of the incumbents in the former Debarker and Utility Operator dassitkatims In d e r that they may assume two of the newly created positions per shff. The remaining MO poritions per shiR will be posted in accordance with the pmvisions of M e 12. The current incumbents in the Trimmerman pdsition shall malntaln their &dng wage rate and will recelw any ilweases negotiated the Union until such time as they vacate the posltian or retlre.

Area requires four posi tks ' per shift. The Company is prepared to remgnize the

For the Company For the Union

63

SAWMIU

currentpodtka chipper canter Rowperson

bff Operator-Log Handling UR Operator-Lumber

T n m m m n Pnmaly sorter Esterer opemtw

oebarkeropwatw Mllty operator step ( N W chaser (Naw)

one Inch llne GleeKhirm a e a n up

Stacker Man Ln Man sbcker W e r

EIANEe

Infeed operabx nit H M ~ operator

bft Operatw - Lumber Handpull Lwder

Pw Maker strapper operator &an Up

Heedecraneoperatw Oryffilnlead Chip TNck Dnver IxmSedTrades

sawver sawyer

Mobile Equipment Mobile Equipment

Machlne Operator Machine Operatw M a c h h Operator

l4dmQuM Licensed Gmder

Machine operator 2 Machine Operator 2

Mobile Equlpment Mobile Equipment

Labourer Labourer LaboUrW

Heede(rCme0peratw DlyKjlnlnlead Chip TNdc Dtw LicenSedTrades

64

cum m

$21.48 $21.28

$19.89 $19.89

$20.92 $20.01 $20.02

$19.90 $20.13

nla nla

$19.17 $19.27 $19.17

$19.59 $19.35 $19.27

current J a t L $22.18

$21.74 $21.74

$19.89 $20.01

$20.00 $19.74 $19.17

$22.68 $21.10 $20.36 $23.58

Naw Bepe $21.48 $21.48

$20.15 $20.15

$20.15 $20.15 $20.15

$20.15 $20.15 $20.15 $20.15

$20.15 $20.15 $20.15

$20.15 $20.15 $20.15

N W Bm $22.20

$21.75 $21.75

$20.15 $20.15

$20.15 $20.15 $20.15

$22.68 $21.10 $20.36 $23.58

DOMTAR INC, NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONSt ENERGY AND PAPER WORKERS

UNION AND ll3 LOCAL 31-X

NAIRN CEMRE, ONTARIO

L m E R OF UNDERSlANDING RE:

ARTICLE XIX - SEVERANCE PAY

The Company has announced to the Union that a maw downsizing dthe sawmill will take pbce Immediately after ratiflcab~. This will require a downtime of the Sawmill of up to approximateiy 18 weeks.

The Company will identify the employees horn the active payroll as of October 6,2000, who will not be subject to a recall before January 1,2002 as a result of the downdzing of the opetab and the implementation of the extended pmdudion xheduie.

It has been determined that the Company wlll need a total complement of appwimately 170 employees (Including those for vacam replacement, leaves of absence and scheduled to the Labour pool) on the stat up of the extended prodwtion schedule.

EiigiMe lald off employes are those employees whose pobitlon on the seniotity list, after removing those names of empbyeis retlring under the spedal downsizing reti@ment wlndow and provislm for the extended pmductim schedule, will fall below the expeaed recall senlciity, I.e. an employee whose positkm is most likely to be atclished. Employees who are negathdy lmpaaed by downsWng if the Company fails to imp!ement the Extended hcduction sdreduk by January 1, 2002, deadline will be considered "EligiMe tad Off Employees".

Ellglble bid off em- also Indude employees who accept to retlre during the spedal retirement window that will start on date of ratificatbn and end on August 31,2001, and who have opted out of the temporary supplement provided under the Letter of Understanding 'Special downsizing retirement window';.

Eligible laid off empbyes will have the option of: a)

b)

A severance payment underm Mx of the Cdlective Agreement

A severam payment equivalent to two (2) week, of pay per year of servke at their standard hourly rate up to a maximum of 26 weeks.

of

65

Eligibk bid off emplaVees who elect option a) will maintain their recaU right fw the duration of this Cdlective Agreement.

Eligible bid off employees who elect opkn b) will forfeit their recall rlght under the collective Agreement effectiw the date of election.

Those e m p b w on LT.D. and W.S.1.6. are not eliiik for any Wmnce Payment under this tetter of Understanding.

For the Company For the Union

66

DOMTAR INC. NAIRN CENTRE SAWMILL OPERATIONS

AND COMMUNICATIONS, ENERGY AND PAPERWORKERS'

UNION AND ITS LOCAL 31-X

' NAIRN CENTRE, ONTARIO

LElTER OF UNDERSTANDING RE:

SPECIAL DOWNSIZING RETIREMENT WINDOW

I n order to minimize the effects of downsizing and to limit the number of employees whose position will be elimlnated, a speclal temporary window of retirement will be opened from the date of ratification until August 31', 2001 during which employees

a) who were actively employed as of October S', 2000 or who have notified the

b) who are then age 58; and c) have then reached 20 years of continuous service; and d) who elect to retire on or before September, 2001

the Company of their return to work prior to May 3,2001; and

will be eligible for a special lifetime monthly supplement pension of $8 per year of pensionable service in addition to an unreduced basic penslon as per the pension plan. Such supplement will be governed by the same rules as for the basic pension except that the pension will not be reduced for early retirement.

This special supplement is introduced for the sole purpose of compensating for the shorter perlod of pensionable servke recognized by the contributory portion of the pension pmgram and in consideration for the downsizing.

Employees retiring under this special window will also be eligible for the temporary monthly bridging benefit of $15 per year of pensionable servke to a maximum of thirty (30) years. The brldging supplement will apply from date of retirement until age 65.

Such retiring employees may however opt out of the special supplement in order to benefit from a retiring allowance equivalent to the severance payment for el ig ik laid off employees, as defined in the Letter of Understanding on Severance. In thls case, the retiree will still be eligible for an unreduced pension and the $15 monthly bridging benefit from date of retirement until age 65.

Those employees on L.T.D. and W.S.I.B. are not eligible for the Early Retirement Window.

For the Company , For the Union

67

Signed at -� 0 , Ontario, on this 5 day of I/ &:".1 , 2001,

For the Voioo For the Company

l,P'nlU�

T. :Duellette

/?._ -Ji. / R. Thibeault

i?'ress1er ? �

MedlafDr . ' / ' CA< �

68

SCHEDULE "E"

GENERAL INFORMATION

PIAN EFFECnVE DATE

The benefits desaibed in this booklet are in effect as of September 1,2000,

EUGIBIUTY

Ail full-time hourly employees who aR members of the Communicab, Erergy and Paperwwkers Union and its Local 31-X are eligible to partkipate in this phn.

I f you have dependents you may insure them as wdl. Your spwse is digible and your unmanid children (including adopted, foster and stepchildren). Dependent children are insured up to age 21.

Any mentally retarded 01 phwlly handicapped chiklren may remain insured past the maximum age pvkied the child is incapable of *if-sustaining employment and is whdiy dependent M you for support and maintenance.

EFFECIIVE DATE OF COVERAGE

You become eligible for ufe Insurance a h having completed 30 wwk days d cunlinwus actiw full-time employment and Lorg Term Disability immediately upon becoming insured for Weddy Indemnity benefits.

Your Weddy Indemnity cwwage, and that of your dependents, is effective after having completed 30 work days of mlinuous active full-lime employment. Your Dental coverage, as well as your dependents', is e M v e on the date you complete a waiting period of 90 work days or service for full-time employment.

Your Medial, Surgical, Drug and Hospital Care plans, and that of your dependents, is effeche on the first day of the fourth mth following the date you were for full lime and full pay.

I f you are actively insured for perso~l coverage and later acquire a dependent, you may endl your dependent In the Health plan by notifying the Personnel Office.

I f you are not activeiy at work on the date your Weekly Indemnity, Medical, Dental OT V i h coverage would normally become effectiw, covemge will commence on your return to work for full time and full pay.

I f one of your dependents is hospitalized on the date Medical coverage would m l l y become effective, coverage will commence ~1 the day foilowing dixharge hom the haspltal.

69

HOW TO OBTAIN THE INSURANCE

To obtain the Insumnce Wbed in this boddet, you should complete and sign all necesary application cards. No medkal examination Is required far you C you am far the lllwtance wiUm thetimesstated.

I F YOU LEAVE OUR EMPLOY

Your group insurance will terminate lf you leave cur employ. You have the right to change your Life Insurance to an individual policy as available by the camer.

LIFE INSURANCE

DEATH BENEm

In the went of your death horn any cause, yw Life Insurance under the Pbn wlll be pald to the knekiary you have named, I f you have named more than one benefidaly and one of t he knefidafies should die before you, his or her share of the imuraw wlll be pakl to the surviving beneficiaries OT if there is m e , it will be pald to your estate.

The amount of your Life Insurance is $60,000.00. In no event shall your insurance continw kymd your date of retirement.

ACCIDENTAL DEATH AND DISMEMBERMEW BENEm

If, as the result of an aaident, you suffer any of the baes listed below within 90 days of the auident, payment will be made as indited. The principal amount of your Acddent Death and Dismemberment Insulance is an amount of your Gmup Life Insurancea

LOSS OF: - Life. -Total and imcoverable loss d sight of both eyes. - Both h a d by wmnce at or above wrist joints. - Both feet by severance at or above ankle joints. - One hand 01 one Foot by severance at or above wrist or an& joints respecthceh, together with the total and imcweraMe loss of sight of one eye.

- Loss of one hand and one foot by severance at 01 above wrist and ankk joint3 respectlwhl.

One-half of the Prindpal Amount shall be payable for:

. Loss of one hand by severance at or above wrist joint.

. Loss of one foot by severance at or above ankle joint.

. Tobl and inecovemk loss of sight of one eye,

70

1. I f more than one dthe bsses spedRed In the Schedule of Lasses and Indemnities shown above shall be sustained by the em* as a result of any one accident, payment shall not erneed the fflndpal Amount, of Acddental Death and Dismemberment Insurance on the employee at the date of UKh acddent.

2. If an emwee has suffed prfar to the date of becoming hKwed hereunder, M rke thereater suffer, the loss of one hand by m n c e at M above the wrist jdnt or one foot by severanceat M a h the an!& pint, or the total and inecoverable loss dthe sight of one eye, the Acddental Death and Dismemberment Innrrance on the scheduk d Inxrmnce provided that the amount of Insurance payak for the loss of ow hand, one fwt, or the slght of one qe shall be onehalf the principal amwnt dthe Insurance.

3. The Insurance shall not mver 'Went , injuty, death or other loss w h i shall result either diredly or indirectly, from any one of the fdlowing:

(a) selfdestruction or self-inflicted injurks while sane M insane;

(b) committing or attempting to mmmit an assault or criminal offence;

(c) riot, civil commotion, insumction, war or hostilities of any kind, or any act lnddent thereto;

(d) bodily or mental infirmity or illness or disease of any kind;

(e) U-te inhalath of gas of any kind, vduntarily or otherwise, resulting in paisoning, asphyxiaton or any other condition causlng death;

(9 poisoning or infe&m, other than infedons occuning simultaneoushl wlb and in consequence of an acddental cut wwnd;

drowning or intmal Injuries are revealed by autopsy;

(h) partidpaby In aemutks othw than as witted under the caniers policy.

(9) in jum of whkh there is no\islbk mtuslon or wound on the wteror ofthe body, unless

CONVERSION PRMLEGE

When your Insurance termi~tes because of termination of your employment, you WU have the privilege of mWng your Ufe Insurance, within the next 31 days without mediel emhatian, to a new @icy on any of the carriers regular plans for an amount not exceeding the amn t d your Group Life Insurance.

I f you die during the 31 day period in which you might have exerdsed this converJon privilege, your tenekiary will be paid the amount of Life Insurance which you would haw been entidd to conwlt.

71

LONG TERM DISABIUTY INSURANCE

DWBIUIY

During the first year of imm payments your disaMlity must went you fnm perfwming any and every duty rela6ng to your regular job wengaging in any ccarpatkr, w pehnii any work in the sawmill. After that Ume you will be mnsidered totalb disabled if you are unable to engage in any occupation or petfixm In any wwk in thesawmill for whkh the caw COnsMen you to be ream& qualified by education, balning or experience. Howevw, if you are working or engage in any occupation for wage or proM other than rehabllibtive employment apprwed by the carrier, you will not be considered to be totally disabled.

BASIC MONTHLY EARNINGS

Your regular mthly earnings on which your benefit will be based will exdude overtime pay, h u s e s and other special compensation as at the date you k a m e disabled.

BENEFIT

If you become totaliy disabled before you are 65 and your disahlity lasts ~KJH than 52 Weeks of benefits under the empbyei's Weeldy Indemnity Plan, yw will be paid a monthly Income which is payable at the end of each month of disability as long as you are disaMed but not be)md age 65 and in no event for more than the number of completed months qual to the employe's servke. You must be under beatment by a licensed physklan to w i v e benefits.

The amount of i n m for which you are eligible wiil be reduced as fdlows:

1. By any payment for los of time to whch yw are entitled from the Wotkpbce Safety and Insurance Board and Canada or Qwbec Pension Plan, exduding any payment in respect of your children.

2. Further redms will be made U) that the amcunt you ww!d receive from the ca& and from any other sources (any other group, assodation and govemmenbl insurance, skk leave 01 retirement plan of your employer) d o s not ex& 85% of your bask mthly eamings.

Genemliy, your mthb benefit is condeed taxak income. If it is not taxable, the 85% limit would apply to your basic earnings after d e d m s have been made for income tax and pension plan.

Estimates of disability ikome from any of these soum will be used until the actual bene& have been established.

12

IF A DISABIW RECURS

If you b m e totally disabled a n within stx months due to the same or rebted cause and not W i n g any imme disability benefits, payments will mmence agah wlthwt the neoessity of completing the 52 weeks. DisaMiHies occuning aRer the sbc month perbd WIU be kaki as f M pth’ disability hzd c€cwed and the 52 week period must be completed again.

GENERAL

The group insurance p d i i must be in force when your disability commences but payments will continue wen if the p d i is terminated as Ihq as you remain disabled.

LIMITATIONS

Covetage Is made as broad as possible. Hower, exdffiiom indude seff-inflktd injuty; disabilke resulting tium riot, dvii commotion, insurmtbn, war or M i of any kind, or acthe duty In any armed service durlng a time of war.

WEEKLY INDEMNITY BENEFIT’

I f you are tobiiy disabled, unable to wcrk, and under the continuing cam! of a physidan, you wiil receive a weekly income not meding 70% of your weekiy earnings. Ywr benetits will c o m m on the earlier&

1. The fwtth day of disability caused by skkness. 2. The first day of a disability due to an acddent. 3. The first day of hospitalization.

During any one pertod of disability your benefits will continue until you reaxref 01 fa a &mum of 52 weeks, whichevw is earlier.

The Company and/or the insurer m the right to require an indeperdent medial ewminatian to confirm the employee’s absence due to disability. Such an examimtkn shall be conducted by a physician or phyWns agreeable,$ the empbyee and the Company.

Any dispute atislng between the Company and/or the insurer‘s physidan and the employee’s phyddan will be resdved by a ph-n (PreferaMy a speadist) chosen by the Company and the Union.

Cost of such physical examinations, medical docuinents, bansportah and reasorable out-of- met expenses related thereto wiil be paid by the Company aruJ/w insurer. An employee will continue to recelve W.I. beneRts w the equivalent horn the Company while Wshe is awaiting sud, ewminatbn(s).

73

EXCEPTIONS AND LIMITATIONS

Msabiiity tenet% are not paydbk for the ffllowlng:

I. 2.

3.

A disaMlity caused by self-intllded hjuries or illness. A disability resulting from I-, war, service In the armed b e s of any munby, or parUdpatkn In a hot A dlsabillty due to any cause at any time when you are on pegnancy lewe of absenceoraxrkl be pbced dn such leave by your employer In acmdance with he relevant Provindal Statues or that agreed upon by you and your employer. For any disability for which you are entitled to benefits under any WMkpbce Sam and Insumnce Act. At any time when you are 00 vacatbn and receiving full pay.

4.

5.

HEALTH CARE BENEFITS

DRUG COVERAGE

Your drug plan coverage, and that of your dependentsl is eff&iveon the first day dthe SeCMd month follwrlng the date you were employed for full bme and full pay Drugs, serum, and in)ectlbles purchased on a presuiptm of a medlcai doctor, except for wtamins and vrtamin prepatatkm (unless Injxted) and patent or propnetaly medunes are elqiMe for coverage by this drug plan and available by presenhng your pmuI ldentificabon card supplied by the cam and a 35$ deducbble fee per presarpbon.

HOSPITAL COVERAGE

Your h n a a l Health Plan provides ward cwetage for iwhmpltal accommodabm. Thls additma1 coverage allows you, and your dependents, seml-pmrate in-hqMal accomWtbn. lhis Semi-pnvate hospital cOMlage IS effdve on the first day of the fourth month fdbmng tJw date you were emplcVed for full-bme and full pay

DENTAL BENEFIT

On behalf of each covered indiv!dual In your family, the Dental Benefit will wmbuse you for dental expenses based on the peraentages Indated by the caw. The d m u m a m n t payMe per indlvdual for servbes Is $l,OOO.OO Effective september 1, 2001, the maximum amount payable per individual for senrim is $1,500.00

TREATMENT PLAN

In order for you and your denbst to learn in advance hw much the camer will pay and how much must be pad !y you, it Is mmmended that a Treatment Flan be flled wlth the carner whenewr the total cost of the pmposed dental work Is ewpeaed to exceed $200.00. The Treabnent Pbn idenbfies owerage and limltatbns for q~uk se~ces and d a h iwnce percentages, speci t limits and Dental Fee Guide allowance before dental Mtment commences. lhe Treatment Plan Is not intended to limit you UI your d -10~ of denbsl, totdl yw or your denbst what katment should be p e r t W m e d 01 to tell the denbst what fee to charge.

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A Treatment Plan is a plan of dental treatment (including x-rays if required) showing the paUenb dental needs, a wrltten descrlph ofthe pmposed treabnent necessaryln the proressiand judgement of the dentist, and the cost of the pmposed Wtment.

ELIGIBLE EXPENSES

fllgible eqmw are those which are recommended as necessary by a phVJaan or dentist that are not In excess of the fee SPEC& for general pracwroner~ III the 1987 ~ e n t a ~ w ~enturist ke Guldeofthe Provlnce of Ontarb. kes for spedalists will be cwkkred if the pamt was referred by a physician or anothw dentist There are seveml dental procedures whkh are covered by Prwindal Health Plans up to m i n maximums. I f the dentist or dental surgeon chwses to charge more than that payable by the Provindal Pbn, legislat!a In some prainces does not permit the e x a s charge to be ellglble under thls Plan.

situations may atise w t m a k m i e methods of katment may be available. It is XMY f ~ r you and your dentist to dedde whlch method will be employed. The carrier wves the right to use the least expen& method d,treatment that would @e a profdonaily adequate result as the bads fw determlnlng their liability.

Oniy those treatments listed are eligibie.

The fdbwing treatments are payable at 100%:

MAMINATIONS: Inifdl ewminaih of a new patient (once every 3 years).. .................................................................... 011101 01120, 01130 Reewmimtion of a previous patient (me evwy 6 months) .......................................................................................... m w specific ewminatkm ............................................................................................. 01. Emergency examination aWor.msulation ............................................... 01300, 94400 .................................................................................. WlW gml CONSULTATIONS TmnMlt plannhl - pw unit of time .............................................................. ..11.1~5100 with p a h t ..................... I , , , , , . , . . . , ; ....................................................................... ~ 5 2 0 0 hother dentist,,,,..,.,.,,..,..,,,.,,,~.,.,,.,,,,..,....,....,...,,,.,,,,,,,.,,,,,,,,,,,,,,.~,,,,,,.,...,..,.......93~~

ofpathdogkagents ................. I . . , : ....................................................................... w100 Dental S~xept i~l i ty .............................................................................. @l200 ~lopsy, soMard tiaue...... ....................................................................... 04300, 04310 cvtorogial wminatkm ............................................................................................. Pulp vihlity tests ...................................................................................................

SPECIFIC DMGNOSnC PROCEDURES: @d&tbbk CUltUreS for detenhiMtbM

OTHER ENDODONTIC PROCEDURES: (PREPARATION OF TOOTH FOR TREATMENT) Gingival cum ................................................................................................. 39100 ~ e c t o m y ........................................................................................................ 39110 Banding of tooth to maintain sterile operaflng field ...................................................................................................... 39120 Hemi section.............. .......................................................... 39210. 39220, 39230, 39300 Ckmkal bleaching only per unit of time ..................................................................................................... 3w0 IntentioMl removal, apical filling and reimplantam .............................................................. 39% 39502, 39503, 39600 Emerg- procedures ....................................................... 39% 39902, 39903, 39904

.................................................................... 3 9 m t 39940,39960, 39970

.......................................................................................... 39980, 39985

SURGICAL SERVICES:

TransPbntam of a too.......... ............................................................................ 72430 Surgical reposifMng of a twtn ............................................................................ 72440 Enucleation of an unerupted tooth and fd licle ............................................................................................................ 72450 AlvmPW per unit Of time .................................................................... 731001 73110 Gingivopbsh/ and/or stomatopla stv ........................................................... 73119. 73120 Odeoplasty - per unit of time ......................................................... 73133. 73134, 73135

......................................................................................... 73140. 73141 .... 74108. 74109, 74408, 74409 .......................... 75100, 75110

Fractur es............ ................................................................ 76196. 76210, 762% 76310 .......................................................................... 76350 , 769101 76950, 76951

F r m o m y ................................................................................... 77.0, 77810, 78110 MidanewS surgical services ............................................ 79104. 79301, 79302, 79303

........................................................................ 79304, 79305,79306, 79307

........................................................................ 79308. 39401, 79601. 79602 ............................................................................................. 796031 79604

......... 9m0, %101

Surgical exposure of tooth ............................................................. 72410.72411, 72412

Adjunctive general services -

The following treatments are payable at 50%:

PROSMrnC SERVICES: Complete maxillary denture (once evew 3 years) ............................................................................................ 51100 Complete mandibular denture (once every 3 years) ............................................................ ...................... 51110 Complete maxillaly and mandibular dentures (once every 3 Years) ....... 51120,51300,51310, 51320

drugs (injections) ..................................................

...................................... .51600,51610. 51620 ....................................................................

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Removable paltiai dentures ................................................. 52120, 52121, .................................................................... 52230, sU1, .................................................................... 52 4001 524101 .................................................................... 52520,52525, .................................................................... 52535 I 52600,

Denture adfumb ............. 1; ........................................... 542% 54300,

................................................................... .55201, 552021 .............................................................................. 55520, Denture rebaing, dining ................................................... 562001 56201, .............................................................. 56220, 56221, .................................................................... 56260, 56261, ......................... .......................................... 56270 I 562711

......................................................................................... Denture repairs ................................................................... 551011 5510g

52220. 52221 52320. 52321 52500. 52510 52530. 52531

55103; 55104 55203. 55204 55530. 55700 56214 56211 56230. 56231 56262. 56263 56272. 56273

lhe following treatments are payable at 50%:

ORTHODONTIC SERVICES PRE-TREATMENT DIAGNOSTIC SERVICES: Diagno* Models. X - b y s .................................................................. 4534 2701, 2702 ..................................................................................... 27031 27041 2705 Qphalometrk work-up 2750 PREVENTIVE &INTERCEPTIVE ORTHODONTICS: Habit Inhlbi ting....... ............................................................ 82101, 82102, 82201, ~ 0 2 Space regaining ............................................................................. 81105, 811% 81201 ................................................................................ 812021 812% m s 2 sm Maintenance ............................................................. ~ ~ Q S S Bite C O ~ w e. ............................................................... 81261, 81203, 81204 .................................................................................. 81205, 812%

...........................................................................................

15100,15110,15120, 15400

CORRECITVE ORTHODONTICS: RemoMMe t~ FIX^ Appliance mmw ........................................... 81115,81116, 81120

.............................................................................. 81125, 81126, 81130 .............................................................................. 81131, 81140, 81207 .............................................................................. 81208, 81209, 81210 .............................................................................. 81211, 81212, 81213

...................................................................................................... 83214 Retention ................................................................................................. 83111, 8312

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VISION CARE BENEFIT

If, while insured, you incur VlW Care expenses for yourself or for a covered dependent you will be pad benefts In an amount equal to swh W j o n Care seruices, subject to the following pmvisions.

Thefdbwing servkes when presaibed by a licensed physkian or licensed OptDmebiStshaU be coverid, but rot to exteed $19.00, in any 24 month period effective the first ofthe month fdlowing date of IatiWh.

I. Lenses and frames for eyeglasses, sunglasses and safety glasses. 2. mwlenses. 3. Services and materials in mnection with vision training and 4. services and materials in ccmecth with medical OT surgbl beabnent. 5. Replacement of bst, stden w M e n eyeglass lenses 01 eyeglass frames.

No benefits are payable for amwnts charged for any of the fdlowing Senrices:

I. Smim rendered before the insurancecnaccount of the pm who receiwswd, services becameeff&.

2. Services received becaw of any injury arising out d w in the couw of any emplovment for wage or profit or enwing the covered p e m to benefits under any Workws’ Compensation or Occupational Disease Law.

3. servkes for ewminahns for the plrpose of presaibing or fitting of eyeglasses, sunglasses or safety glasses.

4. secvkes to the m t that wch wvbx or !mefits for such mkes are aMibtle &any plan w program &Mished puauant to the laws or regulations or any Government and any services to the extent that any Gwwnment pmhibits payment of insurance benefits therefwe.

5. services to the extent that they or benefits therebe are pnvW urder any other group insurance @an or prepayment plan w for which benefits are othwise provided under the group @icy.

6. SWes fw which the person receiving them is not required to make payment or where payment is received as a rewlt of legal xbn 01 sett!ement.

I F YOU LEAVE OUR EMPLOY

Your Vision Care Benefit will cease 31 days aft8 leaving our employ f you have received V I

Care wvks as specified, as adirect result of a complete eye examination.