Table of Contents Page Article 1 – Bargaining Unit and Definition 5 1.01 – Bargaining Unit Recognition 1.02 – Definition 1.03 – New Job Classification 1.04 – Union Work 1.05 – Management Rights 1.06 – Management Rights 5 5 5 5 6 6 Article 2 – Bargaining Agency and Recognition 6 2.01 – Union Security 2.02 – Union Business 2.03 – Leave of Absence 2.04 – Dues Deductions 6 6 6 7 Article 3 – Seniority 3.01 – Definition 3.02 – Seniority List 3.03 – Promotions, Advancement, Vacancies 3.04 – Preferred Jobs 3.05 – Vacancies Due to Illness 3.06 – Lay-Offs 3.07 – Loss of Seniority Article 4 – Hours of Work 4.01 – Regular Hours of Work 4.02 - Overtime Distribution and Rate 4.03 – Work Schedules 4.04 – Notification for No Work 4.05 – Temporary Employee Minimum Call In 4.06 – Call-in After Completion of Normal Shift 4.07 – Adequate Manpower 4.08 – Shift Premiums Article 5 – Wage Rates and Classifications 5.01 – Pay Days 5.02 – Employee Definitions 5.03 – Classifications and Wages 5.04 – Temporary Job Transfers 1 Article 6 – Holidays 6.01 – Paid Holidays 6.02 – Qualification 6.03 – Holiday Occurring on Scheduled Day of Rest 6.04 – Holiday During Work Week 6.05 – Pay for Work on Holiday 6.06 – Elections 6.07 – Pay During Disability Absence Article 7 – Vacations 7.01 – Entitlement and Scheduling 7.02 – Must-Take 7.03 – Holidays During Vacation Period 7.04 – Vacation Pay During Disability Absence 7.05 – Temporary Employee Vacation Article 8 – Health and Welfare and Pension Plans 8.01 – Health and Welfare 8.02 – Pension Plan 8.03 – Sickness and Sick Pay, “Top-up” Using Vacation Article 9 – Holidays 9.01 – Union Stewards 9.02 – Grievance Committee 9.03 – Filing of Grievances 9.04 – Grievance Procedure Article 10 – General Conditions 10.01 – Bereavement Allowance 10.02 – Jury Duty 10.03 – Uniforms 10.04 – Truck Manning 10.05 – Rest Break, Driver’s License 10.06 – One-Man Delivery Article 11 – Security of Principle 11.01 – Compulsory Retirement 11.02 – Company Rules, Strikes/Lockouts, Discipline 11.03 – Joint Health and Safety Committee 2 Article 12 – Job Training and Retraining 12.02 – Training Job Postings, Tuition Refunds Article 13 – Unemployment Insurance 13.01 – Unemployment Insurance Premium Rebate Article 14 – Separation Pay 14.01 – Eligibility 14.02 – Exclusions 14.03 – Amount 14.04 – Deductions 14.05 – Termination of Rights Article 15 –Duplication of Benefits 15.01 – No Duplication 15.02 – Benefits in Lieu 15.03 – “Top-Up” Provisions Article 16 – Duration and Termination 16.01 – Term Schedule A – Health and Welfare Plan Schedule B – Pension Plan Letters of Intent 1. Closure 2. Short Term Disability Payments Letters of Understanding: 1. Changing Work Assignments 2. Drivers Licensing 3. Employee Inter-Branch Transfer 4. Warehouse Pickups 5. Privatization of Alcohol Sales 6. Bargaining Unit Work 7. Lethbridge Operation 8. Banked Time Off 9. Branch Manning 10. Preferred Jobs and Operational Flexibility 11. Bonus Vacation Days 12. Group RRSP Plan 13. Technological Change Appendix A – Variable Compensation System 3 THIS AGREEMENT entered into this 27th day of February, in the year of our Lord Two Thousand and Fifteen between BREWERS’ DISTRIBUTOR LTD. (hereinafter referred to as the "Company" of the First Part) and UNIFOR Local 288 (hereinafter referred to as the “Union” of the Second Part) 4 ARTICLE 1 BARGAINING UNIT AND DEFINITION 1.01 The Company hereby recognizes the Union as the sole and exclusive bargaining agent for all employees in the bargaining unit. 1.02 (a) The bargaining unit shall consist of all employees of the Company employed in the branches of the Company at Calgary and Lethbridge, and as represented in the classifications set out in Article 5 of this Agreement save and except Supervisors, those above the rank of Supervisors and office staff. (b) For ease of expression, use of the masculine gender and singular tense shall mean the same as the feminine gender and plural tense unless otherwise specifically stated. 1.03 In the event that, during the life of this agreement, new jobs are created which are not presently covered in the current list of classifications herein contained, a new classification and rate for such job(s) shall be established as agreed upon between the Company and the Union. Should the parties not be able to agree, either party may invoke the grievance procedures as outlined in clause 9.04, beginning at Step 4, within two (2) weeks. During the interim, the rate of pay shall be set at the Warehouseman rate, and follow the progressive wage scale. Should a current regular employee apply for, and successfully obtain, the new classification, if created, he shall retain his current rate of pay. The Company agrees to discuss manpower complements as part of ongoing Union/Management meetings as the need arises. In the event of a change in existing jobs or job classifications, the Company shall first advise the Union and review the need for such change before implementation. 1.04 (a) No employee of the Company, other than a member of the Union shall do any of the work performed by employees in the bargaining unit, except in cases of training and genuine emergency. Extreme emergencies shall not be abused by such people, nor at any time shall such emergencies become a regular or frequent development. Such work shall be defined as the receiving, warehousing, and handling of full and empty containers and operation of the scrubber at Company operated premises. It shall also include the delivery of beer and pick-up and delivery of empty bottles and kegs within the delivery area of the Company’s operating area as identified in Section 1.02 of this Article. (b) Work currently assigned within each of the urban areas where Brewers’ Distributor Ltd. has a branch will be performed by BDL personnel except in cases of emergency where men and equipment are not available. Such work shall be defined as the receiving, warehousing and handling of full and empty containers at BDL operated premises and the delivery of beer and the pick up and delivery of empty bottles and kegs within the delivery area of BDL’s branches. 5 Notwithstanding the above, should BDL discontinue any of its current operations the foregoing will not apply. 1.05 The right to hire, promote, demote, discharge or discipline for cause, and to maintain discipline and efficiency of employees is the sole function and responsibility of the Employer, subject to the terms and conditions of this Agreement. All matters concerning the operation of the Employer's business not specifically dealt with herein shall be reserved to the Management and be its sole responsibility. 1.06 BDL agrees not to exercise these functions in a manner inconsistent with the provisions of the Collective Agreement. ARTICLE 2 BARGAINING AGENCY AND RECOGNITION 2.01 Only members in good standing of the Local Union shall be employed by the Company. When no Union members are available, extra help may be employed as long as it does not cause any lay-off to Regular Union Members. All such extra help must obtain a permit card from the Union before going to work, and must make application to join the Union within thirty (30) days. The regular Union wage scale will be paid to all such extra help according to the classifications and scale of wages as is designated in this Agreement. The local union shall be provided with a bi-monthly report and the union dues owed for any outside staffing agency that the Company uses to enhance the workforce outside of the regular and temporary complement. 2.02 No employee shall be discriminated against or discharged for his activity as a Union member or for doing committee or other work for the Union, provided, however, that permission from the employer is obtained if such activities occur during working hours and interfere with the employee’s normal duties on behalf of the Company. It is agreed that such permission, if requested, will not be unreasonably withheld in any instance. Employees shall not lose any regular pay for attending meetings approved by the Company, such as safety or grievance. Additionally, the Union will appoint four (4) employees who shall be permitted paid time off, to a maximum of eight (8) days per employee, for attendance at negotiation meetings with the Company. The Union shall be responsible for paid time at arbitrations and meetings not approved by the Company. In addition the Union shall be responsible for any other expenses associated with such absences such as meals, travel, accommodation, etc. It is agreed that an outside representative of the Union’s choice may be present if requested. 2.03 (a) The Company agrees to grant leave of absence for a period of not more than twelve (12) months, or for the balance of the duration of this Agreement, whichever is longer, to a maximum of two 6 employees in the bargaining unit who have been elected or appointed as officials of the National Union or of the Local Union, if such duties require a leave of absence from Company duties on a full or part time basis provided adequate notice is given to the Company. The Company further agrees to grant leave of absence to employees to participate in any other activities as appointed by the Union, provided the Company received proper notice and there is no cost to the Company. (b) An employee on such leave of absence shall be continued as an active member of the pension and the welfare plans upon payment of the total contributions, whether from the Union or from the employee concerned. During such periods of leave of absence the employee’s seniority shall continue to accumulate as if he were employed at his regular post by the Company. However, it is understood and agreed that in the event of the closure of the branch from which the employee has been granted leave of absence, his entitlement for separation pay under Article 14 shall be frozen as of the date he first took leave of absence. (c) Individual employees may, with the company’s consent in writing, obtain a leave of absence without pay when in the opinion of the Head of the Department, conditions so warrant. The written consent will state the dates at which the leave begins and ends. Applications for leave of absence must be made through the employee’s immediate supervisor, however, if the reasons for a leave of absence are of a personal nature, the employee may elect to discuss the reasons (a) with the Head of the Department or (b) with the Manager, Human Resources, having first notified the Head of the Department. 2.04 Having received signed authorization cards from employees the Company shall deduct from the pay of each employee covered by this Agreement, a sum in the amount of current Union dues, and uniformly applied assessments. The Company will take the current annual dues and assessments and divide by 26 to arrive at a pay period deduction. Employees working less than eight (8) hours per pay period will not have dues deducted. A written list of the employee’s names and the relative amounts so deducted, shall be submitted by the Company to the Union Financial Secretary not later than the week following the deduction. The Union will notify the Company of the amount of the established dues to be deducted and will further notify the Company thirty (30) days in advance of any change with respect to the amount of the established dues and uniformly applied assessments. Upon granting a leave of absence for union business as per 2.03, the Company agrees to pay an employee’s wages while on union business and then deduct such wages from the dues check-off for that month. 7 The Company agrees to include dues deductions on T-4 slips issued to bargaining unit employees. ARTICLE 3 SENIORITY 3.01 Seniority is defined as the length of an employee’s service within a branch of the Company as established in conformity with Article 5.02. 3.02 The Company shall maintain and post a Seniority List on the Branch Bulletin Boards within thirty (30) days from the date of the signing of this Agreement, and every three (3) months thereafter during the life of this Agreement. The Union has the right to take up the matter of alleged irregularities on such list through the Grievance Procedure within thirty (30) days of the list being posted. 3.03 (a) In the event of a vacancy occurring within any job classification in a branch of the Company, and in the event of an opening occurring within the branch for promotion and advancement, the Company shall post such job opportunity in the branch concerned within seven (7) days of a declared vacancy occurring, subject to Clause 1.03. The filling of vacancies, promotions and advancements within the branch shall be made on the basis of the most senior application, provided he is competent. Competency, wherever used in this Agreement, shall be determined based on qualifications, abilities and the overall (previous) work performance of the applicant/employee. The Union will receive, upon request, a rationale in writing why one employee was selected over another, provided the selected employee was not the most senior applicant. (b) The standard application form that is used for job posting on the bulletin boards shall fully specify the type of job vacancy. If a more senior employee than the selected applicant is absent from work during the total period of the job posting, the Company shall notify the absent employee by registered mail and after receipt of notification, he shall be permitted to apply for such job within a period of four (4) calendar weeks after the closing date of such posting. The Company shall post such job opportunity in the branch concerned for a period of seven (7) calendar days. The Company will post the name of the successful applicant within seven (7) calendar days of the closing date of the posting and the successful applicant will assume the responsibilities on the date his name is posted. If the new applicant finds within seven (7) calendar days that the job is unsuitable, he will be allowed to transfer back to the job classification he last held and retain all rights and privileges as if he had never left. The job opportunity shall be re-posted once, for a period of five (5) calendar days and will be awarded in accordance with Article 3.03 (a) and (b) above. 8 (c) In the event of a vacancy occurring and no member of the bargaining unit applies for such vacancy and there is no member on lay-off, the Company shall contact the Union to determine if the Union can supply a competent candidate for the job vacancy. (d) If at any time an employee’s job/classification is discontinued, he shall be transferred to the job/classification he last held, and shall retain all rights and privileges as if he had never left that position. Should the employee not be able to return to his last position, because he did not have a previous position, or if there is no longer such job available, he will be placed in a position as mutually agreed upon by the Company and Union. (e) In all cases involving an employee who acquires some physical deficiency that necessitates his transfer to another job in the Company’s operation, the Company and the Union will mutually decide on which job position such employee will be transferred to. (f) The filling of preferred jobs within the branch shall be made on the basis of the most senior applicant, provided he is competent. 3.04 Where there is a position vacant due to the illness or injury of the incumbent extending beyond twenty-six (26) weeks, the position will be posted on the condition that when the original incumbent returns to work he will receive his former position, provided he is able to satisfactorily perform the required duties. In the interim of one (1) day and twenty-six (26) weeks the vacancy will be filled on seniority basis provided he is competent. 3.05 In the event that it becomes necessary to reduce the work force in any Branch, the Company shall first lay off temporary employees. If further reductions are necessary, the Company will lay off employees in reverse order of seniority. When the work force of a Branch is increased following lay-off, the employees shall be recalled in order of seniority. The right of recall as contained in this clause shall not be construed as a prohibition against laid-off employees accepting employment with any other employer. 3.06 An employee will automatically lose his seniority and cease to be an employee of the Company for any of the following reasons: (a) if he quits; (b) if he is discharged for cause; (c) if an employee is absent from work for three (3) consecutive working days without having notified the Company and received permission to be absent in advance where that is possible. The Company will attempt to follow-up with the employee to determine the cause of such absences. (d) if he accepts gainful employment while on a granted leave of absence without the Company’s and the Union’s previous consent in writing; 9 (e) if the employee has been laid off and fails to report for work within seven (7) days after written notice to report to work has been sent by registered mail to his last address registered with the Company; provided that when an employee is recalled to work and does not report within forty-eight (48) hours the Company may recall the next employee in line, but he is subject to being displaced if the first employee does report within seven (7) days; (f) in case of lay-off for a period of twelve (12) months; (g) in the case of lay-off if not willing to take full time employment with the Company; (h) an employee will lose his union seniority if he accepts and holds a position in management. ARTICLE 4 HOURS OF WORK 4.01 (a) Eight (8) consecutive hours constitute a Regular employee’s working day. Five (5) consecutive working days shall constitute a Regular employee’s work week. (1) Five (5) working days – Monday to Friday, or (2) Five (5) working days – Tuesday to Saturday, or (3) Five (5) working days – Sunday to Thursday. (b) Should the Company schedule Sunday work to meet the needs of its customers (the brewers and/or licensees), or in cases of genuine emergency, they will first discuss the matter with the Union. Following that discussion, the Company may schedule employees on Sunday. (c) A premium of one dollar ($1.00) per hour shall be paid to all employees for each hour worked on a Sunday. 4.02 (a) Overtime shall not be compulsory provided that an employee not desiring overtime work can be conveniently replaced with another employee of equal ability. (b) Designated overtime work shall be allocated equitably among those regular employees then on shift, willing and competent to do the work. In the event that there is an insufficient number of regular employees willing and competent to do the work, such work may be assigned to temporary employees who are competent to do the work. (c) In the event mandatory overtime is required, and there is an insufficient amount of workers who have signed the posting it will be assigned to available, qualified temporary employees in reverse order of their length of employment. In the case of additional employees being required, this will be assigned to regular employees in reverse seniority. Should a regular employee not sign the posting and present for the available shift, and can be utilized, they will be assigned where 10 operationally required. Should an employee sign the posting and not present for the work assignment, they will be subject to discipline, notwithstanding acceptable reasons. It is further understood, that the Company reserves the right to its discretion when adjudicating whether the reason to not be available is acceptable. This decision will be solely made by the warehouse manager and or the assistant warehouse manager. The company will endeavour to eliminate the need for overtime where practicable. In the event that two or more employees commence employment on the same date, length of employment for those employees will be based on their last name alphabetically. (d) If an employee is required to work on his scheduled day of rest, he shall receive not less than four (4) hours pay at the applicable rate. (e) All work performed in excess of eight (8) consecutive hours of work shall be paid at the rate of time and one-half. (f) All work in excess of forty(40) hours per week shall be paid at the rate of time and one- half. (g) Employees working overtime at the completion of their regular shift shall be afforded a fifteen (15) minute work break after completion of two (2) hours overtime and a fifteen (15) minute work break every four (4) hours thereafter. The Company agrees to provide the cost of a meal not to exceed either dollars ($8.00) for all employees working four (4) or more hours of overtime beyond the completion of their regular shift. 4.03 The schedule of hours to be worked each day by each Regular employee shall be posted on Thursday for the following week. The normal weekly work schedule as provided herein may be altered or varied by mutual agreement of the Company and the Employee’s Representatives at the Company’s branches. The parties shall not unreasonably withhold agreement. If the parties do not mutually agree, it is understood that the junior competent employee will be assigned the altered or varied work schedule. Regular and Temporary employees are responsible for checking the posted work schedule. The Company shall not schedule split shifts. 4.04 Employees must be notified before quitting time if they are not to report for work the next day. If they are not notified and report to work, then they shall be paid for the whole day provided that they work the whole day. In the event that a Temporary Employee is not at work the day prior to the shift in question they are responsible for checking the posted work schedule. 4.05 Temporary employees and students called out to work for less than one half day, in either the morning or afternoon, shall receive not less than one half day’s wages in each instance at the applicable rates for that day. 11 4.06 Any employee required to return to work after the completion of his normal shift shall receive not less than four (4) hours pay at the applicable rate. 4.07 (a) The Company will supply adequate manpower on all operations in all departments at all times so that an employee will not be required to perform more than a fair day’s work. (b) Clause (a) shall not be construed to mean that the manning of all operations is at present exactly adequate or that all employees are presently assigned exactly a fair day’s work, and accordingly, changes in the manning of crews and changes in any employee’s work load may be made so long as the resulting situation is not a violation of Clause (a). 4.08 Any shift starting between 6:00 a.m. and 2:00 p.m. shall be considered the day shift. Any shift starting after 2:00 p.m. or before 10:00 p.m. shall be considered the afternoon shift and effective April 1, 2009 shall receive one dollar ($1.00) per hour over the hourly rate for all hours worked. Any shift starting after 10:00 p.m. or before 6:00 a.m. shall be considered the night shift and effective April 1, 2009 shall receive one dollar twenty-five ($1.25) per hour over the regular hourly rate for all hours worked. ARTICLE 5 WAGE RATES AND CLASSIFICATIONS 5.01 Pay day shall be bi-weekly on Friday for the two (2) weeks ending the previous Saturday. 5.02 (a) Regular Employees (1) A Regular Employee is any full time employee covered by this agreement who is presently on the seniority list of the Company. Any regular employee currently classified as Tractor driver, Driver, Shipper/Receiver, Fork Lift Operator, Picker, Warehouseman, or Bottle Buyer will maintain their current classification, subject to the operational requirements of the Company. Any regular employee hired or permanently transferred on or after April 1, 2000, will be placed in either the Warehouse or Transport classification, dependent on the operational needs of the Company. It is understood that employees may be required to perform work outside their classification, subject to the efficient operation of the Company. (2) Any Employee who has been selected to fill a declared job vacancy and who, after satisfactorily completing a probationary period of (90) working days of employment in that job, will then be reclassified as a Regular Employee and placed on the seniority list. A seniority date will then be established by counting back (90) working days from the completion of the probationary period. 12 (b) Temporary Employees (1) A Temporary Employee is one hired to meet the additional manpower requirements of the operation. These employees will be subject to a ninety (90) working day probationary period. (2) It is recognized that a Temporary Employee will be terminated once the seasonal or other need for which he was hired has been met. (c) Lead Hands Lead Hands shall be those designated by the Company from time to time to direct some phases of the operation over and above the ordinary duties required of the job classification. The Lead Hand has no authority to discipline employees. Effective April 1, 2012, the Lead Hand rate shall be one dollar ($1.00) per hour above the rate for the job classification for those hours worked as a Lead Hand.” 5.03 Classification and Wages (a)(1) Class 1 Designation: (a) Any current employee that has changed classification or new employee who accepts a Transport classification requiring a Class 1 certification will be subject to a one hundred eighty (180) working day probationary period. They will also be required to undergo an evaluation process which may be conducted by an internal or external evaluator. For employees who previously held a position requiring a Class 1 certification and who have not driven in the past twelve months, they will not be subject to the one hundred eighty (180) working day probationary period, but they will be required to undergo an evaluation process which may be conducted by an internal or external evaluator. (b) A regular employee who bids on a position requiring a Class 1 certification and who does not meet the requirements necessary for a Class 1 position will be reclassified to their previous posting. (c) A new employee hired directly into a Class 1 position not meeting the requirements necessary during the probationary period of one hundred eighty (180) working days in that position; that employee will be subject to termination. (2) The parties agree that current temporary employees will be given the first opportunity to apply for the vacancies for regular positions and the vacancies will be filled on the basis of merit, ability, competency and qualifications. In the event a current temporary employee is selected to fill a position requiring a Class 1 license and that employee does not hold a valid Class 1 license, the Company agrees to pay the employee at the current temporary employee rate during the training period. Upon completion of training and verification of Class 1 certification, the employee will be reclassified as a regular employee and will receive the appropriate rate of pay. Following successful completion of a probationary period of 180 working days as a Regular employee, the Company will provide the training to a maximum of thirty (30) hours inclusive of testing and licensing. 13 a) If the employee does not successfully complete their Class 1 certification within sixty calendar days of the payment of license costs, the employee agrees to reimburse the Company one hundred percent (100%) of the license costs. b) If the employee does not successfully complete their probationary period of 180 working days, the employee agrees to reimburse the Company one hundred percent (100%) of the certification costs. c) If the employee’s employment is terminated within the first three (3) months of completing their probationary period, the employee agrees to reimburse the Company seventy-five percent (75%) of the certification costs. d) If the employee’s employment is terminated for any reason within three (3) to nine (9) months of completing their probationary period, the employee agrees to reimburse the Company fifty percent (50%) of the certification costs. In the event that a suitable candidate is not available from the current employee complement at that time, applications will be sought from outside the Company. b) Wage Scales The following wage progression is applicable to all regular employees. Employees on this wage scale will receive wage increases based on actual hours worked. Hours Worked as Regular Warehouse Employee 0 – 1040 1041 – 2080 2081 – 3120 3121 – 4160 4161 + Effective April 1, 2015 0% Hours Worked as Regular Transport Employee 0 – 1040 1041 – 2080 2081 – 3120 3121 – 4160 4161 + Effective April 1, 2015 0% Effective April 1, 2016 1.25% $19.45 $20.76 $22.07 $23.37 $26.01 $19.69 $21.02 $22.35 $23.66 $26.34 Effective April 1, 2016 2.00% $20.35 $21.66 $22.97 $24.27 $26.91 $20.76 $22.09 $23.43 $24.76 $27.45 14 Effective April 1, 2017 1.25% $19.94 $21.28 $22.63 $23.96 $26.66 Effective April 1, 2017 2.00% $21.17 $22.54 $23.90 $25.25 $28.00 In the event that a temporary employee is awarded a regular vacancy, they will move to the start rate listed above, and progress through the wage scale according to their actual hours worked in the classification, however, will be immediately entitled to benefit coverage and regular employee status. (2) Temporary Employees Hours Worked 0 – 620 621 – 1040 1041 – 2080 2081 + Effective April 1, 2015 0% $16.63 $17.23 $17.53 $17.83 Effective April 1, 2016 0.75% $16.75 $17.36 $17.66 $17.96 Effective April 1, 2017 0.75% $16.88 $17.49 $17.79 $18.10 For employees who work as students, hours worked from date of hire going forward will be recognized as “Hours Worked” for progression increases only, provided there is no break in service longer than twelve (12) months. (c) If an employee is moved temporarily to a lower rated job than his classified position, he shall retain his own wage, but if an employee requests to be moved temporarily to a lower rated job than his classified position, he shall be paid at the lower rate of pay for the time spent in the lower rated job. 5.04 Employees who transfer to other than their regular work temporarily shall receive their regular scale of wages regardless of where they will be temporarily working. If, however, the work transferred to is of a higher paid classification in the Wage Schedule the higher rates shall be paid for any period of one (1) hour or more. ARTICLE 6 HOLIDAYS 6.01 (a) The following days shall be observed as paid holidays: New Y ear’s Day Good Friday Victoria Day Canada Day Heritage Day Labour Day Thanksgivings Day Remembrance Day Christmas Day Boxing Day And one additional holiday as may be declared by the Provincial or Federal Government. 6.02 A regular employee of the Company, without being required to work on the above days shall be entitled to receive eight (8) hours straight time pay at his job rate, provided that: (a) he was not absent on the last work day scheduled for him before the holiday, or the first work day scheduled for him after the holiday; unless excused by prior authorization of the Company or 15 unless the absence is the result of illness or accident (including WCB) supported by acceptable medical evidence. (b) he has worked at least five (5) days, or forty (40) hours during the twenty (20) working days immediately preceding the holiday. Temporary employees will receive holiday pay in accordance with Employment Standards, provided that (a) and (b) above are met. 6.03 If any of the holidays enumerated above fall on the employee’s scheduled days of rest the employee will receive, by mutual arrangement, either payment for the holiday at regular rates or another day off as the Holiday. Where the Company schedules another day off, such scheduled day shall be considered as the holiday for all purposes of the Agreement. The Company will reschedule the holiday in accordance with the wishes of the employee provided the Company work schedule can be maintained. The company will post the days on which holidays will be observed no later than February 1st of each calendar year. 6.04 If one or more of the above holidays occur during an employee’s working week, his working week shall be reduced by eight (8) hours for each such holiday and he shall be paid at the applicable rate for all work in the week over the reduced working week. 6.05 An employee who is required to work on a paid holiday shall receive, in addition to pay for the holiday, time and one-half for the time so worked. 6.06 If by reason of an election the Company is prevented from making deliveries in any area the Company shall, wherever possible, reschedule work in the week so as to avoid lay-off. Where any layoff occurs in respect of two (2) elections per year the employees laid off shall be paid their regular wages for the day. 6.07 If any of the holidays enumerated above occur during an employee’s disability absence for which he is on Short Term Disability he shall receive the difference between regular pay and the amount he has received from Short Term Disability for such days during such absence up to fifty-two (52) weeks. ARTICLE 7 VACATIONS 7.01 (a) During the duration of this Agreement, every Regular Employee shall be entitled to two (2) weeks vacation per year after one (1) continuous year of service at their regular rate of pay. The parties agree that April 1 to March 31 shall be the common vacation year. Vacation entitlement shall be calculated as follows: An employee shall not be entitled to take any vacation from their date of hire as a regular employee, to April 1 of the next year. At April 1, the employee shall be entitled to a prorated amount of 16 2 weeks vacation, based on actual hours worked, at their regular rate of pay. At April 1 of the following year, the employee shall be entitled to two (2) weeks vacation provided they have worked ninety (90) working days or more in the previous vacation year. (b) After three (3) years continuous service with the Company, Regular Employee shall be entitled to three (3) weeks vacation per year at their regular rate of pay provided they have worked one hundred (100) working days or more in the twelve (12) month period prior to that date each year. (c) After eight (8) years continuous service with the Company, Regular Employees shall be entitled to four (4) weeks vacation per year at their regular rate of pay provided they have worked one hundred (100) working days or more in the twelve (12) month period prior to that date each year. (d) After fifteen (15) years continuous service with the Company, Regular Employees shall be entitled to five (5) weeks vacation per year at their regular rate of pay provided they have worked one hundred (100) working days or more in the twelve (12) month period prior to that date each year. (e) After twenty (20) years continuous service with the Company, Regular Employees shall be entitled to six (6) weeks vacation per year, at their regular rate of pay provided they have worked one hundred (100) working days or more in the twelve (12) month period prior to that date each year. (f) After twenty-five (25) years continuous service with the Company, Regular Employees shall be entitled to seven (7) weeks vacation at their regular rate of pay per year provided they have worked one hundred (100) working days or more in the twelve (12) month period prior to that date each year. (g) Should the employee work less than one hundred (100) days in any year, his vacation entitlement will be pro-rated for the time actually worked. This pro-rated vacation will become the entitlement for the current year, or if necessary, the following year’s entitlement will be adjusted as applicable. (h) Vacations up to an including two (2) weeks shall be arranged between April 1st and September 30th unless mutually arranged otherwise. Weeks of vacation beyond two (2) weeks shall not be taken during the busy seasons, unless operationally feasible. (i) January 1st of each year, the vacation schedule and employee’s vacation entitlement must be posted and remain posted until February 1st. At this time the Company with the assistance of the Union Representative, if requested, shall schedule employees’ vacations. Such scheduling is to be completed by the 15th of March of each year. (j) The annual vacation schedule will provide for up to fifteen percent (15%) of the regular employees, to be away on vacation at any one time during the vacation year, unless operationally feasible. The Company may request that vacation be arranged so that the efficient operation of the Company is not effected, e.g. availability of class 1 drivers. 17 7.02 Vacations shall be taken with due regard to seniority and shall not be cumulative from one (1) contract year to another, if the privilege is not exercised in any one year. 7.03 In the event of a paid holiday, as provided in this Agreement, falling during a vacation period, the employee shall be entitled to an extra day’s holiday with pay. The Company will reschedule the holiday in accordance with the wishes of the employee provided the Company work schedule can be maintained. (See also appropriate section in the Employment Standards Code) 7.04 Notwithstanding any other Article of this Agreement, an employee’s annual vacation must be taken as prescribed by the Collective Agreement. Employees who are in receipt of disability compensation allowances, such as Workers’ Compensation, short term disability, Company paid sick leave, etc., shall have added to such allowance, by the Company, vacation wages, if any, so that the employee receives, during his vacation period, the full amount he would have received had he not been disabled, sick, etc., but in no event shall he be entitled to receive more in combined compensation and vacation wages than he would have received were he not in receipt of such disability compensation allowances. 7.05 (a) In the event temporary employees qualify for vacation under the Employment Standards Code, these vacations may be scheduled and taken by temporary employees outside of the peak vacation period (May to September, Christmas and long weekends), and subject to the efficiency of the operation. (b) Temporary employees will be provided the option to bank their vacation pay. In the event an employee has banked their vacation, they may withdraw the entire outstanding amount at the end of May in each calendar year. Any outstanding balance will automatically be paid to employees in the first pay period in December and the second pay period in January. (c) Where a temporary employee is successful in filing a regular job vacancy, all previously accrued vacation pay shall be paid out, and vacation accrual as a regular employee shall commence, as stated in 7.01(a), from the established seniority date. ARTICLE 8 HEALTH AND WELFARE AND PENSION PLANS 8.01 Health and Welfare A summary of the Company’s Group Health and Welfare Plan is given in Schedule “A” to this agreement. It is understood and agreed that the Company is not an insurer and that the benefits described in the schedule shall be governed by the contract with the insurers. The Health and Welfare Plan will be provided free of cost to the employees. Notwithstanding this requirement, any employee who moves into Regular Employee status on or after April 1, 2012 shall 18 be required to pay for their first twelve months as a Regular Employee, twenty percent (20%) of the cost of provision of the following benefits: a. b. c. Extended Health Dental LTD An employee who is laid off continues to participate in the Health and Welfare Plan of the Company applicable to employees in his Bargaining Unit to the end of the month following the last month in which he has worked in the Bargaining Unit. Health and Welfare Plan for the purpose of this section does not include the Pension Plan or the Company’s Sick Pay, Short Term Disability Plan or Long Term Disability Plan which covers only indemnity for wages actually lost because of illness or accident. An employee on layoff who, pursuant to the above, has ceased to participate in the Health and Welfare Plan is restored to participation immediately upon completion of eight (8) hours work in the Bargaining Unit. 8.02 Pension Plan The Company will amend the Pension Plan as detailed in Schedule “B” of this Agreement. 8.03 Sickness and Sick Pay (a) Sickness shall be no cause for discharge. Upon recovery from any sickness, supported by a medical certificate if necessary, the employee shall be re-employed in his former capacity. (b) (1) Employees who achieve Regular status after April 1 in the contract year, shall be credited with two (2) hours of sick leave benefit for each full month remaining in the contract year. (2) Regular status employees as at April 1 shall be credited with forty (40) hours of sick leave benefit per contract year. All unused sick leave will be paid out March 31. (3) Only twenty-four (24) hours of sick leave benefit may be used at one (1) time. (c) The Company shall have the right to request a doctor’s certificate attesting to an employee’s illness, disability or fitness for work on a form provided by the Company for this purpose (this is not access to confidential medical information).The Company shall pay the cost of any fees. Abuse, misrepresentation, or misuse of the sickness or disability provisions will result in the employee being ineligible for benefits for the period in question. (d) The sick leave benefit may be used, in cases of disability from occupational accident or non-occupational illness to provide full compensation. When it becomes apparent that an employee, who is on STD or a WCB claim, will not return from the claim in time to exhaust his/her vacation entitlement prior to the fiscal year end (March 19 31), STD or the WCB benefits shall be topped up to March 31 to full daily earnings, and the equivalent hour and dollar amount shall be reduced from his/her vacation bank. Should there be vacation remaining at March 31, the employee shall be required to carry-over a maximum of two (2) weeks vacation entitlement to be used as time off immediately upon his/her return to work from STD or the WCB claim. At March 31, any vacation entitlement in excess of two (2) weeks shall be paid out. (e) In the event that an employee becomes ill or is injured after having commenced his vacation, and the illness continues to the point where, if at work, he would have qualified for Short Term Disability coverage, he shall have any full days of the remainder of his vacation canceled for the period that he would have qualified for Short Term Disability coverage, and rescheduled at a later date. In order to implement this clause, the employee must first contact his supervisor immediately if he becomes ill or in injured and he must be able to meet the Short Term Disability requirements. No Short Term Disability payments will be made for that period in which the employee was in receipt of vacation pay. (f) The Union agrees to co-operate in the communication and support of the Employee and Family Assistance Program (EFAP). ARTICLE 9 GRIEVANCE PROCEDURE 9.01 The Company acknowledges the right of the Union to select three (3) shop stewards and one (1) Chief Steward at Calgary, plus one (1) shop steward at Lethbridge. 9.02 There shall be a Grievance Committee consisting of up to three (3) employees designated by the Union, who are actually then in the employ of the Company, and who will be afforded such reasonable time as may be required to attend Grievance meetings held at the request of the Management or the Grievance Committee. The Union shall advise the Company of the names of the members of the Grievance Committee and Shop Stewards, in writing, and also of any changes from time to time. 9.03 The Company or the Union, or aggrieved employees, can file grievances for processing under this Agreement. In the case of a grievance being filed by either the Company or the Union respecting any grievance as distinguished from that first tendered by an aggrieved employee the parties shall commence discussions at the second step of the grievance procedure, and the grievance shall be put in writing by the aggrieved party should settlement not be reached in that step. 9.04 9.04 In the case any grievance arises, an honest effort shall be made to settle the differences in the following manner: 20 Step No. 1 The aggrieved employee shall notify the Shop Steward who will immediately request time off from his Supervisor in order to take up the matter. The Shop Steward with or without the aggrieved person, shall take up the matter with the Supervisor within ten (10) working days of the grievance arising or becoming apparent. Failing a satisfactory settlement, the grievance shall be put in writing on the forms provided by the Union and shall be signed by the Shop Steward. The Supervisor shall give his answer on the form and sign his name within five (5) working days, after which the second step may be invoked. Step No. 2 (a) The Grievance shall be submitted on a grievance form by the Union Executive within five (5) working days to the Manger, Operations – or his designate (which at all time will be a management person with a position of Supervisor or above). (b) The Manager, Operations – or his designate shall have five (5) days in which to give his answer to the Grievance Committee in writing and return same to the Union Executive within the five (5) working days. Step No. 3 If not resolved in Step No. 2 the grievance shall be submitted by the Union Executive to the Manager, Human Resources within two (2) working days. The Union and the Company shall, within three (3) working days fix a firm date for a meeting to be held within fifteen (15) working days between the Grievance Committee of the Union, the Manager, Operations and the Manager, Employee Relations, or their designates, to deal with the matter . The Company shall have five (5) days in which to give a response to the Greivance Committee in writing. If settlement is not reached, Step No. 4 may be invoked. Step No. 4 Should the parties be unable to resolve the grievance at Step 3, either party may submit the matter to an Industry Troubleshooter or for arbitration within sixty (60) days.. (a) A single arbitrator that is satisfactory to both parties will be selected to hear the grievance. Should the parties not be able to agree on an Arbitrator within sixty (60) days, either party may apply to the Alberta Labour Relations Board for a list of five (5) prospective arbitrators to be forwarded to each of the parties. Upon receiving the list, the parties will have up to ten (10) working days to agree on an arbitrator from the list. If the parties cannot agree, then either party may ask the Minister of Labour to appoint an arbitrator. 21 (b) The parties undertake to prepare a “statement of agreed facts” for submission to the arbitrator. This statement will be prepared jointly by the parties after a matter has been referred to arbitration. (c) The arbitrator shall not have any jurisdiction to alter or change any of the provisions of this Collective Agreement, or to substitute any new provision in lieu thereof. The decision of the arbitrator will be final and binding upon the parties and the employee(s) concerned. (d) The Company and the Union shall bear the expenses of their respective counsel for arbitration. All other reasonable costs of such arbitration, including the fees and expenses of the arbitrator shall be equally shared by both parties to this Collective Agreement. (e) Where an Arbitrator finds in favour of an aggrieved employee, such employee shall receive full back pay for time lost arising out of the grievance and full reinstatement in his former job, including all benefits and entitlements, held prior to the grievance having arisen. Where an employee has been suspended, dismissed or disciplined, the Arbitrator may confirm, modify, or set, aside the decision. The Arbitrator shall have the power to decide if the question before him is arbitrable. Industry Troubleshooter A) Where the parties agree to invoke the use of an Industry Troubleshooter the appropriate process will apply. This process will only apply when both parties agree to utilize the Industry Troubleshooter, should both parties not agree, then the Arbitration process will take place. B) As the process is intended to be non-legal, legal counsel will not represent either party during this process All presentations should be short and concise and are to include a comprehensive opening statement. C) Prior to rendering a decision, the Industry Troubleshooter may assist the parties in mediating a resolution to the grievance(s). Where mediation fails or is not appropriate, a decision shall be rendered as contemplated within and may include an immediate verbal award if the parties so agree, with a formal written award to follow. The decision of the Industry Troubleshooter is to be completed and delivered in ten (10) working days of the hearing. D) Industry Troubleshooter shall have the power and authority to conclusively settle the dispute and his/her decision shall be binding on both parties. The Industry Troubleshooter shall not have the power to change the Collective Agreement or alter, modify or amend any of its provisions. The Industry Troubleshooter shall have the power to dispose of the grievance in any manner he/she deems just and equitable. 22 E) Any decision of an Industry Troubleshooter will be without prejudice. There will be no precedent set for future cases to be heard the same way. F) If either party believes that the Industry Troubleshooter has erred in law or if either party feels that the Industry Troubleshooter’s decision has altered the Collective Agreement, either party will have the opportunity to proceed to Arbitration. G) The parties will agree to a list of Industry Troubleshooters to hear cases and be jointly responsible for the expenses of the Industry Troubleshooter. ARTICLE 10 GENERAL CONDITIONS 10.01 (a) When an employee (Regular or Temporary) attends the funeral of an immediate relative he shall receive paid leave of absence as is reasonable under the circumstances to enable him to look after the funeral arrangements. Only regular working days shall be paid for. The extent of such leave shall be at the discretion of the Company, depending on the time of the bereavement in relation to his regular time off, the distance to be traveled, etc. The general standard of bereavement time shall be three (3) consecutive days. Immediate relative shall be defined as spouse (as designated for benefits coverage), significant other, life partner, mother, father, legal guardian, son, daughter, brother, sister, father-inlaw, mother-in-law, grandparent and grandchild. This also includes the above relations as “step” relations. In the event an employee suffers bereavement during their scheduled vacation, they may contact their Supervisor to cancel their vacation, exercise their bereavement during their scheduled vacation, they may contact their Supervisor to cancel their vacation, exercise their bereavement and reschedule the remainder of their vacation time at a later date. (b) In the event an employee has received prior permission to attend the funeral of a brother-in –law or sister-in-law on a regular scheduled work day, time off with pay will be granted. (c) When an employee is granted time off during his regular shift to act as a pall bearer for a deceased fellow employee or pensioner of the Company, he shall be paid at his regular rate of pay for any time lost up to a maximum of eight (8) hours. 23 10.02 (a) Should an employee be called for jury duty, the Company will supplement his jury pay to ensure that the employee will receive, totally, monies equivalent to eight (8) hours of straight time at his regular rate for those days he would actually have been at work, during his service as a juryman. (b) Any employee who is subpoenaed as a witness in a civil case in which the Company Solicitor certifies the Brewers’ Distributor Ltd. As having an interest, or was called as a witness in a criminal or Quasi-criminal case which the Company Solicitor certifies as a work of good citizenship, shall not suffer any net loss of pay while so serving, provided the employee turns over to the Company any fees or payment received for appearing as such witness. 10.03 (a) All Regular Warehouse employees will be provided an allowance/voucher to purchase appropriate clothing and CSA approved safety shoes/boots (toe and shank protection), redeemable at a local clothing store to a maximum of $275.00 per contract year. All Regular Transport employees will be provided an allowance/voucher to purchase appropriate clothing and CSA approved safety shoes/boots (toe and shank protection), redeemable at a local clothing store to a maximum of $325.00 per contract year. It is acknowledged that the payment/voucher for the cost of clothing and safety shoes/boots will only be made to employees who then require them for their job with the Company and who have been actively at work for three (3) months of the contract year. (b) Temporary employees will receive $75.00 per year for the purchase of CSA approved safety shoes/boots (toe and shank protection) or clothing upon presentation of a receipt. Upon completion of one (1) years of continuous service this amount will be $125.00 per year. The Company may deduct this amount from the employee’s final pay if he does not remain employed for three (3) months. (c) Temporary employees assigned to city delivery functions will be provided with suitable uniforms. 10.04 (a) Hotels, clubs, restaurants, special permits, canteens, and lounges must be serviced by two (2) deliverymen per truck. (b) The Company shall endeavour to eliminate all stair deliveries. 10.05 The Company will pay the cost of a driver’s license, endorsements, and medical where such licenses and medical is required in the performance of the employee’s job duties. 10.06 Notwithstanding Article 10, Clause 10.04 (a), the Company will assign less than two (2) delivery men per truck provided it is safe to do so. The following conditions will apply in assigning less than two (2) delivery men per truck: (a) A delivery man working alone will not be required to handle any cash from any licensee. 24 (b) BDL will provide necessary support equipment to maintain the safe work environment of a delivery man working alone (i.e. if full pallets are required to be moved by one delivery man, a power transporter will be supplied). (c) Management recognizes the right of a single delivery man to identify an unsafe situation and call his supervisor for assistance. This would also include severe weather conditions. The supervisor will assess the circumstances ad will determine if assistance is required. When assistance is required, it will be provided. It is the intent of the parties to deliver the product in a safe and efficient manner. (d) When assigning one man deliveries, Management will consider the wishes of the classified senior employee. When senior unclassified employees are required to fill in on a day-to-day basis (sick time, vacations, etc.), this will be done so according to the seniority, availability and operational requirements. (e) Delivery service to new locations that have power hoists and/or loading docks, or locations that can accommodate power transporters and/or forklifts, will be scheduled for deliveries without two (2) delivery men. A Union Executive Member who is also on the Health and Safety committee must be included in the determination. (f) Delivery service to new locations not meeting the criterion established in Section (5) above or delivery service to current delivery locations that substantially alter their current delivery methods will be initially serviced by two (2) delivery men per truck. These locations will continue to be serviced by two (2) delivery men until the arbitration process outlined in this subsection is exhausted. A Union Executive Member who is also on the Health and Safety committee must be included in the determination. Within thirty (30) days of the initial delivery, an authorized Union representative and an authorized Company representative will jointly visit the new location to discuss whether the location is such that it may be safely and efficiently serviced by less than two (2) delivery men. If agreement is reached between the two representatives, the new location will be designated a two (2) man or one (1) man delivery location. Neither party will unreasonably withhold their agreement. Failing agreement, this matter will be submitted to the Labour/Management Committee for resolution. Neither party will unreasonably withhold their agreement. Should the parties be unable to agree, the matter may be submitted at any time after the expiry of thirty (30) days set out in paragraph 2 above to an arbitration board under the terms of this agreement with the sole issue for determination being whether or not the new location is a one (1) or two (2) man delivery location. In reaching a decision, the arbitration board shall only consider the safety and efficiency of delivery. 25 ARTICLE 11 SECURITY OF PRINCIPLES 11.01 When employees of the Company become of pension age, this privilege shall be exercised. 11.02 (a) The Employer shall post rules of the Company in a conspicuous place so that all employees may read them. (b) Infractions of the rules of the Company shall be sufficient for disciplinary action up to and including discharge, subject only to the operation of the grievance procedure. (c) There shall be no lockout on the part of the Company and likewise there shall be no sympathetic strikes staged by the Union while this Agreement is in force and effect provided the Company shall not request or require its employees to handle, process or deliver goods coming from, belonging to, or for delivery to an establishment at which a legal strike or legal lockout is in progress, and it shall not be a violation of this Agreement for employees to refuse to handle, process or deliver such goods, or to refuse to cross an established bona fide picket line. Notwithstanding anything contained herein the Union will provide skeleton crews to protect the Company’s property and products during any form of labour disturbance which may arise. (d) employee. Only the Manager or Supervisory Employees shall have the authority to suspend any The Employee shall be entitled, prior to the imposition of discipline, to a meeting with Management in order to discuss the reasons for taking such action and the employee shall be accompanied by a Union Representative (of the Grievance committee if possible), and the employee shall be notified in writing of the grounds for written warnings, suspension or discharge. The Union shall receive a copy. The only exception to the above would result from a Suspension Pending Investigation if: (1) a Union Representative was unavailable, or (2) more information was required to determine if discipline is warranted. A meeting would be scheduled as soon as possible. Should a decision then be made that the employee warrants no discipline or discipline that is less than a suspension, he will be compensated for his regular hours not worked. All disciplinary records will be removed from the employee’s personnel records after a period of one (1) year from the date of issuance of such discipline (three (3) in the case of suspension), and thereafter shall not be used for any purpose. Reference will not be made to an employee’s non-disciplinary records during disciplinary action if such records are three (3) years old or more. 26 11.03 The Company and the Union agree to establish a Joint Health and Safety Committee and to have regular meetings with the Committee. ARTICLE 12 JOB TRAINING AND RETRAINING 12.01 (a) Before selecting employees for training on other jobs, the Company will post the training job for a period of three (3) working days. Employees having the greater seniority will be given preference to qualify within a reasonable training period. Notwithstanding the foregoing the Company shall temporarily assign any employee to any job. (b) Employees will be eligible for refund of tuition costs (including pres cribbed textbooks) of educational courses provided that the Manager, Human Resources gives prior approval and that in the opinion of the Manager, Human Resources: (1) The course is given by a recognized school; and (2) The course is likely to contribute to the employee’s performance or advancement within the company, and (3) The course is seen as a contribution to the development of the employee; and (4) The employee offers proof of successful completion of the course(s). ARTICLE 13 EMPLOYMENT INSURANCE PREMIUM REBATE 13.01 The employee’s share of any Employment Insurance Premium Rebate will be retained by the Company to offset a portion of the cost of the benefit improvements contained in this Agreement. ARTICLE 14 SEPARATION PAY 14.01 A regular employee shall be entitled to separation pay as set out in Subsection .03 provided he has not been excluded by Subsection .02 and provided he meets any of the following eligibility provisions: 27 (a) if he is terminated for a reason other than set out in Subsection .02; (b) if he is laid off and on any date during his layoff the hours scheduled for him during the previous twelve (12) consecutive months were less than fifty percent (50%) of normal full time hours provided he is not eligible for any Company or Government pension or for benefits under the Company’s insured Short Term Disability or Long Term Disability Plans; (c) in special cases where a laid off employee appears to have little prospect of recall to regular work within a period of six (6) months he may request immediate termination and separation pay, and with the concurrence of the Company and the Union this may be granted notwithstanding the eligibility clause in (b) above; An employee eligible for a separation payment hereunder must apply for it not later than six (6) months after he first becomes eligible therefore, otherwise his right to such payment shall be cancelled. Notwithstanding the above, if the Company permanently discontinues an operation, an employee laid off as a result thereof must apply for and shall receive any separation pay to which he is entitled without waiting the six (6) month’s period. 14.02 Notwithstanding Subsection .01, an employee shall be excluded from separation pay eligibility if: (a) he quits; (b) he is terminated for just cause; (c) he is terminated under Section 3.06 of this collective agreement. (d) he has been terminated because of specific direction or decree from any Government authority, which has the effect of curtailing any of the Company’s operations; unless (1) the direction or decree is the result of an illegal act committed by the Company or one of its representatives, or (2) the direction or decree purports to change the method of beer retailing within the Province; (e) he has been laid off because of any act of war or the hostile act of any foreign power or by any act of sabotage or insurrection or by any act of God; (f) he is laid off and has arranged with the Company to take leave of absence without pay for a specific period in lieu of his layoff; (g) he is in receipt of income replacement benefits under the Short Term Disability or Long Term Disability Plans or the Workers’ Compensation Act; (h) he is entitled to receive any pension under the Company or Government Pension Plan. 28 14.03 The amount of the separation payment of an eligible employee shall be equal to: (a) one week’s base earnings (computed on the basis of his hourly rate in effect as of time of layoff) multiplied by the number of his completed years of seniority (as used for vacation entitlement) as of the last day he actively worked in the Bargaining Unit, plus (b) for employees classified as regular employees prior to May 5, 1988, an additional Three Hundred and Seventy-five Dollars ($375.00) multiplied by his completed years of seniority used in (a) above to a maximum of 15 years. However, such eligible employee who applies for separation pay at the time he first becomes eligible therefore shall have his separation pay under this part (b) calculated as Seven Hundred and Fifty Dollars ($750.00) multiplied by his completed years of seniority used in (a) above to a maximum of 15 years. If there is a permanent closure of the complete operations of Brewers’ Distributor Ltd. The 15-year maximum is replaced with a 22-year maximum. (c) With respect to Separation Pay, the following hourly rate to be used in the calculation of “one week’s base earnings”. For service up to March 31, 2000, the hourly rate in effect at March 31, 2000. For service after March 31, 2000, the hourly rate in effect at the time of layoff. 14.04 The Company shall be authorized to deduct from any separation pay payable to an employee hereunder the amount of any payment made to such employee which the employee was not entitled to receive. 14.05 If an employee applies for and accepts a separation payment hereunder, his employment is terminated and his seniority and other rights under the Collective Bargaining Agreement are cancelled. ARTICLE 15 DUPLICATION OF BENEFITS 15.01 An employee shall not receive wages or other allowances such as holiday pay, vacation pay, short term disability, LTD, Worker’s Compensation, or other similar benefits from more than one source for the same day or part of the day. 15.02 An employee receiving a benefit such as sick leave, short term disability, long term disability, WCB, etc. will continue to receive these benefits, while eligible, in lieu of any other monies or benefits under the collective agreement. 15.03 Articles 15.01 and 15.02 will not negatively impact on the current “top-up” provisions contained in the Collective Agreement. (See Articles 7.04 and 8.03(d).) 29 ARTICLE 16 DURATION AND TERMINATION 16.01 The Collective Agreement shall remain in force until March 31, 2018, and thereafter from year to year unless either party serves notice of termination or amendment not greater than one hundred and twenty (120) days and not less than sixty (60) days prior to March 31, 2018 or if such notice has not then been served, then not greater than one hundred and twenty (120) days and not less than sixty (60) days period to the 31st of March in any subsequent year thereto. All conditions of this Collective Agreement shall remain in force and effect until the earlier of a ratified amended Collective Agreement or the mediation proceedings pursuant to the Labour Relations Code have been exhausted. There shall be no retroactive application of any of the provisions of this settlement and the resulting amendments to the Collective Agreement except as expressly provided for herein. IN WITNESS WHEREOF the parties have set their signatures hereto the day and year first above written. FOR THE COMPANY: FOR THE UNION: Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 30 SCHEDULE “A” Health and Welfare Plan 1. This schedule outlines the benefits, including improvements added in this Agreement, which are provided under the Company’s insured Health and Welfare Plan. It is intended only as a convenient summary of the important provisions of the Plan, which is more fully described in a booklet, which will be supplied by the insurance company. 2. Each Regular Employee who has established seniority, as provided in Section 5.02 of the Agreement, and each future pensioner, is entitled to the benefits provided by the Plan. 3. Benefits – Regular Employee, and Dependents Where Specified (a) Life Insurance Each employee is insured for $59,000 as of April 1, 2015 payable in the event of death from any cause. Employees not actively at work on the effective dates of the increases shall be provided increased insurance coverage upon their return to active employment. (b) Accidental Death and Dismemberment Insurance In addition to life insurance under 3(a) the employee is insured for $59,000 as of April 1, 2015, in the event of accidental death or dismemberment resulting from non-occupational causes. Employees not actively at work on the effective dates of the increases shall be provided increased insurance coverage upon their return to active employment. (c) Hospital Expenses – Employees and Dependents To supplement the benefits under the Alberta Government Hospital Plan, the insurance provides for payment for the employee and his dependents of hospital charges for semi-private accommodation (room and board) for an unlimited period when hospitalization is from nonoccupational causes. When hospitalization is due to pregnancy, childbirth or resulting complications, the benefit will apply if the employee’s insurance has been in effect for nine (9) months. (d) Outpatient Hospital Expense – Employee and Dependents Care and treatment for non-occupational injury or sickness received as an outpatient in a licensed hospital will be paid up to a maximum amount of $50.00 per calendar year. (e) Major Medical – Employees and Dependents 31 This insurance provides for payment towards reasonable and necessary charges incurred for supplies and services, recommended by a physician or surgeon for treatment of non-occupational disease or bodily injury, such as services of physicians, surgeons, or specialists, private duty nursing by registered graduate nurses, registered nursing assistants or attendants as required and prescribed, drugs requiring written prescription of a physician, where such exceed the charges paid for by the basic insurance for Medical, Surgical and Outpatient referred to above. The Major Medical insurance will pay 80% of the excess allowable expense; subject to: (1) a deduction of $20.00 per insured person in each calendar year with a maximum deduction of $40.00 per family in each calendar year. (2) a maximum benefit of $10,000 for any one person, employee or dependent. (3) Effective April 1, 2012 Vision Care coverage will be provided to all regular status employees and dependants to a maximum of $225.00 per person every two (2) years upon presentation of a receipt. (4) Effective April 1, 2009, employees who are regular employees on that date will be provided with a Health Care Spending Account with an annual maximum of $600.00. Effective January 1, 2010, this annual maximum will be increased to $750.00 and will be applied to employees who are regular employees on January 1st of each year. (f) Short Term Disability and Long Term Disability Coverage (1) Short Term Disability Where an employee is disabled due to a sickness or a non-occupational accident, a weekly benefits amounting to 70% of wages (applicable classified hourly rate x 40) in effect during the twenty six (26) week period will be paid to an employee who is off work and under the care of a doctor. Payments will commence as follows: Non-occupational Accident On the first day of each occurrence. Sickness On the fourth day of each occurrence. Benefits will be continued to a maximum of twenty-six (26) weeks for any one period of disability. Employees achieving Regular Employee status after April 1, 1994, who were hired with a preexisting condition cannot access the benefit plan for one year from the day on which Regular Employee status was attained, in relation to that condition. 32 (2) Long Term Disability Should the disability, described above continue beyond the end of the 26th week, upon successful completion of the required application for continued benefits and submission and approval of supporting medical documentation, the insured Long Term Disability Plan will commence at the 27th week and will continue until recovery, or age 65, whichever occurs first. Where an employee has received Workers’ Compensation payments for a twenty-six (26) week period, the Long Term Disability plan will commence at the 27th week and will continue until recovery or age sixty-five (65) whichever occurs first. The L.T.D. Plan will provide the payment of 66 2/3% of wages (applicable hourly rate x 40)in effect during the first seventy-eight (78) weeks of the Long Term Plan. Should the disability continue past the 104 week period (26 weeks + 78 weeks) the future weekly benefit will be calculated at 66 2/3% of wages (hourly rate x 40) in effect at the 104th week of disability. (3) Coverage under Insured Short Term Disability and Long Term Disability Plans Coverage will be continued: (i) for the first one hundred and four (104) weeks of a disability provided the employee is unable to perform his own job; (ii) in excess of one hundred and four (104) weeks, provided the employee is unable to perform any job for any employer for which he is reasonably qualified by training, and education, or experience, to perform, as determined by the insurance carrier. The Short Term Disability Plan and the Long Term Disability Plan will be of a standard nature underwritten by an insurance carrier and will include an offset clause for integrating statutory payments such as Canada Pension Plan, Unemployment Insurance and in the case of Long Term Disability, will also include an offset clause for integrating Workers’ Compensation. (4) Rehabilitation Benefits In an employee’s monthly indemnity ceases because he is no longer disabled to the extent required by this provision and he immediately enters a rehabilitation program, then during such program the insurance company will pay to him a monthly rehabilitation income as set out in the following paragraph for a period of not more than twelve (12) months. The amount of monthly rehabilitation income will be the amount of monthly indemnity which the employee has been receiving prior to entering his rehabilitation program reduced by 70% of any compensation received by him for work performed during the program except that if at any time the employee’s total monthly income arising from the sum of his monthly rehabilitation income, his compensation during rehabilitation and any income received from sources referred to in Item i to v of the Schedule below exceed 75% of his earnings from the employer as set out in (g) 1 or (g) 2 during his disability period, then in such event the employee’s monthly rehabilitation income will be reduced by the extent of such excess. 33 Income Schedule (i) Salary or wage; (ii) Indemnity from other Group Insurance Plans; (iii) Company Retirement Plan; (iv) Government Benefits; (v) Workers’ Compensation For the purpose of this provision a “Rehabilitation Program” means program of vocational training or a period of work for the purpose of rehabilitation, either of which is approved in writing by the insurance company. (5) Pension Accrual The Company will provide the necessary monies to build up the pension of an employee receiving benefits from the insured Long Term Disability Plan at the rate of pension accrual in effect at the commencement of the disability. (6) Effect on Other Benefits Group Life Insurance, Accidental Death and Dismemberment and Health benefits shall be continued in force during any period the employee is receiving Short Term Disability or Long-Term Disability benefits. (h) Dental Plan With the exception of employees identified in Article 8.01, the Company will provide a dental plan free of premium cost to the employee to cover each Regular Employee and his dependents. Effective April 1, 2006 the Dental Plan Fee Schedule will be upgraded to the current fee standard for Alberta and will remain updated from year-to-year. The Plan will be subject to the terms and conditions of the insurer and in general, will provide for reimbursement of seventy-five (75%) per cent of the cost of eligible Basic Services, as now defined, and seventy-five (75%) per cent of the cost of eligible Restorative Services, as now defined, and fifty (50%) per cent for orthodontics as now defined. The maximum per year for combined basic and restorative services is to be fifteen hundred dollars ($1,500). The combined lifetime maximum for Orthodontic Services will be twenty-three hundred dollars ($2,300). 34 4. Benefits – Pensioners Benefits granted to employees who retired prior to the signing of this Agreement are governed by the Agreement in force on the date they retired. Regular employees who retire on or after the date of this Agreement will be entitled to the following benefits: (a) Life Insurance will be continued at $3,000.00 Employees who retire on or after April 1, 1988, life insurance continued at $4,000.00 (b) Early retirement as a result of partial disability Life insurance will be continued: - To age 65 at $5,000.00 - From age 65 at $3,000.00 Employees who retire on or after April 1, 1988, life insurance continues at $4,000.00 (from age 65) (c) Effective the first day of the month following ratification the welfare benefits indicated in Section 4 and 4(1) will be continued for employees who retire after April 1, 1991 under the provisions of normal retirement, special early retirement and 85 point retirement. 5. Alberta Health Care Premium The Company agrees to cover the cost of the Alberta Health Care premium as contemplated by the Provincial government, during the life of this agreement. 35 SCHEDULE “B” Pension Plan The Pension Plan will be amended effective April 1, 1974, by cancelling the present provisions for a Contributory Pension Plan, and all references relating to future service pension benefits, Employees contributions and Earnings as set out in Schedule “B”, reference Item 1, Subsection (a), (b) and (c) dated effective January 1, 1972. The Pension Plan will be amended to provide: Effective April 1, 1974: A non-contributory plan with corresponding changes in benefit entitlements. Effective April 1, 2015: No further benefits shall accrue under the Brewers’ Distributor Ltd. Pension Plan for Hourly Employees in Alberta (the “Alberta Hourly Plan”, or the “Pension Plan” as used in the Collective Agreement). All members of the Alberta Hourly Plan will not accrue any further defined benefits under the Pension Plan and all accrued defined benefit entitlements thereunder (including credited service) shall be frozen at March 31, 2015. In addition, all entitlements under the Alberta Hourly Plan shall be determined effective as of the date of ratification of this agreement. Employees participating in the Alberta Hourly Plan at the date of ratification of this agreement shall immediately become eligible to participate in the Group RRSP Plan on the terms described in this Collective Agreement immediately on April 1, 2015. A. Pensions 1. For members who retire on or after April 1, 2012 the following shall apply (a) Minimum Pension at Normal Retirement: A member retiring at age 65 with at least 30 years of credited service is entitled to a lifetime supplement being the amount required to be added to the member’s accrued pension and the full unreduced Canada Pension Plan Retirement benefits determined at the date of his retirement to produce a minimum monthly pension of $2,560. Pensionable service after March 31, 2012 will not be eligible for indexing. If a member retires at age 65 with less than 30 years of credited service, the lifetime supplement shall be the amount by which the minimum pension at the normal retirement exceeds the full unreduced Canada Pension Plan Retirement benefits, prorated by the ratio of the number of years of credited service to 30 years and reduced by the member’s accrued pension. (b) Calculation of Pension Benefit Accrual: 36 For service after April 1, 2012: a monthly pension equal to forty-five dollars ($45.00) multiplied by the number of years of credited service. For service to March 31, 2012, the pension benefits accrued to each member remain unchanged. (c) Special Early Retirement: A member retiring after having attained age 60 with at least 30 years of credited service is entitled to an immediate accrued pension equal to the amount of accrued pension to his credit for service to date of early retirement, without reduction for the earlier date of retirement. This pension will be supplemented by an amount necessary to provide a monthly pension of $2,285 from the Pension Plan payable until the member would have first become eligible to receive unreduced Canada Pension Plan Retirement benefits. Thereafter the supplement shall be recalculated as the amount required to be added to the member’s accrued pension and the full unreduced Canada Pension Plan Retirement benefits determined at the date of his retirement to produce a monthly pension of $2,560 which supplement shall become his lifetime supplement. In addition to the recalculated lifetime supplement, a member who retires before March 31, 2009 will be paid a further supplement, if necessary, to produce a total pension from the Pension Plan equal to the pension that would be payable if the member were then retiring at normal retirement, based on the normal retirement minimum pension and full unreduced Canada Pension Plan Retirement benefit both determined as of that date, his accrued pension including any escalation thereof and his related credited service. This further supplement shall then be added to and form part of the member’s lifetime supplement. (d) Deferred Retirement Should a regular employee continue in employment beyond his normal retirement date, the following conditions shall govern such employment: 1. The employee’s Pension shall become payable as of the first day of the month immediately following the month the employee ceased to be employed with the Company or no later than the first (1st) day of December in the calendar year during which the employee attains age sixty-nine, whichever shall first occur. 2. The employee’s Pension will include any escalation benefits which occur from his normal retirement date to his Pension Date. 3. No contributions to the Pension Plan will be made after the employee has reached his normal retirement date and no service shall be credited after the aforementioned date. 4. An employee’s Pension will not be affected by any amendments made to the Pension Plan after the employee’s normal retirement date. 37 5. An employee’s Pension benefits will be actuarially reviewed effective as at the Pension Date having regard to the employee’s Pension having been deferred since his normal retirement date. 6. For purposes of calculation any minimum pension supplement, the Canada Pension Plan and old age security benefits, where applicable, will be taken into account at the level in effect at the employee’s normal retirement date. 7. An employee who continues in the employ of the Company after his normal retirement date as defined in the Pension Plan, shall be entitled to only the insured welfare benefits provided to employees on retirement as at his normal retirement date. 2. Other Early Retirement A member retiring on or after April 1, 1988 and after having attained age 55 but prior to having qualified for Special Early Retirement is entitled to an immediate accrued pension equal to the amount accrued vested pension to his credit for service to date of early retirement reduced in accordance with his age when his pension commences. In addition, such member shall be entitled to a lifetime supplement calculated as if the member had attained age 65 on his date of retirement but using his current unreduced vested accrued pension and his related credited service, the full unreduced Canada Pension Plan retirement benefit and the normal retirement minimum pension all determined as of the member’s actual date of retirement. The lifetime supplement so calculated will then be reduced in accordance with his age when his pension commences. 3. Termination of Employment (Vesting) A member’s accrued pension and lifetime supplement shall completely vest upon the completion of two (2) years of continuous plan membership. 4. Joint and Survivor Pension A member with an eligible spouse who takes Normal, Special Early, 85 Point or Early retirement on of after April 1, 1988, shall receive a joint and survivor pension unless the persons entitled to the joint and survivor pension deliver to the Plan Administrator a written waiver of such entitlement in the prescribed form within the period of twelve months immediately preceding the commencement of payment of the pension benefit. Unless waived, the member’s accrued pension and lifetime supplement, if any, shall be reduced by 10% during his lifetime. Upon his death, his eligible surviving spouse shall receive a pension of 60% of the member’s reduced accrued pension and lifetime supplement, if any, (subject to actuarial reduction if such spouse is more than 10 years younger than the member). 38 5. Death Before Retirement If a member who is accruing service dies prior to his retirement date but after completion of two (2) years of membership in the plan and such member has a spouse, the spouse shall receive an immediately monthly pension payable for her lifetime equal to the member’s accrued benefit at his date of death. The lifetime supplement will be calculated as if the member had attained age 65 on his date of death, but using his current unreduced accrued pension and his related credited service, the full unreduced Canada Pension Plan retirement benefit and the normal retirement minimum pension all determined as of the member’s actual date of death. If a member who is accruing service dies prior to his retirement date but after completion of two (2) years of membership in the plan, and such member has no spouse, the beneficiary shall receive the lump sum Actuarial Equivalent value of the Member’s accrued benefit at his date of death. 6. 85 Point Retirement A member retiring after having attained age 55 and whose age plus years of credited service total 85 or more (but prior to having qualified for Special Early Retirement) is entitled to an immediate accrued pension equal to the amount of accrued vested pension to his credit for service to date of early retirement. In addition, such member shall be entitled to a lifetime supplement calculated as if the member had attained age 65 on his date of retirement but using his current unreduced vested accrued pension and his related credited service, the full unreduced Canada Pension Plan Retirement benefit and the normal retirement minimum pension all determined as of the member’s actual date of retirement. 7. Escalation of Benefit Commencing with the January 1st following a member’s actual retirement date, the member’s accrued pension and lifetime supplement, if any, shall be increased each January 1 by the percentage set out in the existing pension escalation formula. Any spousal pension will also be escalated on the existing formula, with the first increase occurring on the January 1st following the member’s date of death. B. Disability Retirement Effective April 1, 1991 for employees who have attained age 50 and completed 10 years of service who become disabled and retire under the disability provisions of the pension plan will receive a supplementary benefit of $14.00 per month multiplied by the number of years of credited service up to a maximum of 30 years. The supplement is payable until the employee is eligible to receive either a 39 statutory disability or retirement benefit. This supplement will be paid in addition to such employees’ full accrued pension at time of disability retirement. C. That any increase in C.P.P. and O.A.S. after normal retirement date (age 65) will accrue to the employee. D. Credited Service shall include all service during which he was an employee member of the current Company Pension Plan and all predecessor Company Pension Plans applicable to him. E. The Normal Retirement Age will remain at sixty-five (65). Provision for Voluntary Early Retirement will remain unchanged. F. Integration with Canada Pension Plan Benefits. If an employee is eligible to receive any of the Canada Pension Plan Benefits and does not apply for or loses part or all of such benefits through delay in applying for them, by earnings while eligible for such benefits, or other act or failure to act, the employee shall be deemed to be in receipt of such benefits for purposes of calculating the amount of any supplement. The supplement pension calculated in accordance with the above provision is only payable during the lifetime of the employee. Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 40 LETTER OF INTENT #1 CLOSURE To: Local 288 UNIFOR The Company will provide six (6) months notice to the union and employees of its intention to permanently close the complete operations of Brewers Distributor Ltd. Following the notice the Company will meet with the union to explore realistic alternatives to the impending closure. Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 41 LETTER OF INTENT #2 SHORT TERM DISABILTY PAYMENTS To: Local 288 UNIFOR The Company will, upon the request of an employee, give due consideration to advance monies pending the commencement of short term disability payments, if the following conditions exist: (a) It is beyond the control of the employee; (b) a short term disability claim has been properly submitted by the employee with no undue delay, or (c) the claim has been approved and payment of the claim is delayed. Repayment of such advance will be effected immediately upon the commencement of short term disability payment. This Letter of Intent shall expire with the Collective Agreement. Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 42 LETTER OF UNDERSTANDING #1 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: CHANGING WORK ASSIGNMENTS It has been mutually agreed between the parties that effective immediately, any individual who has the opportunity to change his work assignment and starting time on a temporary basis shall receive a normal day’s pay at the applicable hourly rate for the new position only, without claim to any additional compensation unless the hours spent in the new work assignment exceeds eight hours. Should either party experience problems with this arrangement, the Company shall revert back to the current practice whereby replacement of employees is handled on a seniority basis between employees working on the same time schedule for that day. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 43 LETTER OF UNDERSTANDING #2 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: Drivers Licensing A. SUSPENDED LICENSES Notwithstanding any other provision in the Collective Agreement, BDL and Local 288, being concerned with an employee’s welfare and continued employment should he lose, or have his driving privileges suspended by the Courts or its agents, agree to the following: 1) Should an employee who requires his driver’s license to carry out the duties of his position, have his driver’s license suspended by the Courts or their agents (i.e. Police), and be unable to carry out his driving duties, such an employee will immediately vacate his position until the return of his driver’s license, and until such time as the Insurance company will once again insure the employee to operate B.D.L.’s fleet vehicles under their standard policy and rates. After twenty-four (24) months have elapsed from the time the affected employee vacated his driving position, pursuant to Point 1 above, he may, with the agreement of both the Company and the Union, apply for vacant driving positions on the condition that if he is the successful applicant he will pay, to the Company, the difference, if any, between the normal assessed rates for insurance and any additional premiums that may be assessed as a result of his earlier suspension. 2) An employee who vacates his position, pursuant to point No. 1 above, will have to await an available posted vacancy before he can re-apply to a driving position. Such a posting and subsequent selection will be in accordance with the provisions for filling a vacancy as outlined in the Collective Agreement. 3) An employee who vacates his position pursuant to Point No. 1 above, will be allowed to move to the first non-driving position, for which he is competent, that becomes vacant, and which he has the seniority to hold. 3.1) Such a vacancy will occur as a result of posting the driving position and another employee accepting the driving position that he vacated. 44 3.2) The above scenario may involve subsequent (more than one) postings before the affected employee is placed. In the interim period, BDL will assign available work to the employee in a classification as close to his regular rate of pay as possible. Once the affected employee(s) has been permanently assigned a new position pursuant to point No. 3 above, he will accept the pay rate assigned to the classification/position. B. DRIVER DEMERITS & INSURANCE BDL and Local 288, being concerned with additional costs that may be imposed on BDL from its Fleet Insurance Carriers as a result of employees having been assessed demerit points to their driving licenses, agree to the following: 1) All employees who may be required to operate BDL’s vehicles in the performance of their duties will be expected to provide proof of a valid driver’s license to BDL, including the taking of a photocopy if asked by BDL Management. 2) Any employee who may be required to operate BDL’s vehicles in the performance of their duties will provide consent to enable BDL to obtain a “Driver’s Abstract” if required by BDL Management. 3) Such requests will only be made of employees who may be required to operate BDL’s vehicles in the performance of their duties. 4) Should B.D.L.’s Fleet Insurance Carrier determine that certain employees of BDL are “high risk” as a result of demerits against their driving licenses and assess a higher premium rate than the normal assessment, the employee(s) deemed to be “high risk” will pay to the Company any additional premium assessment above 20% over the normal rate. Should the employee(s) not wish to pay the additional premium assessment above 20% over the normal rate (additional costs of assessment, save for the first 20%), the employee may, with the approval of the Company and the Union, vacate his driving position as per the provisions of point A 3.1 and A 3.2 above. 5) The Company agrees to provide to the Union the information provided by the Fleet Insurance carrier which substantiates that certain employees of BDL are “high risk”. 6) The procedures outlined above will be implemented effective February 18, 1988 and will not be imposed retroactively. 45 Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 46 LETTER OF UNDERSTANDING #3 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: EMPLOYEE INTER-BRANCH TRANSFERS It is understood and agreed that employees may request a transfer from one Company branch location to another without loss of Company seniority rights and privileges as per the following: 1. Upon completion of the job posting procedures to fill a declared vacancy in any one branch, as outlined in Article III, Section 3.03(a), and there being no successful applicant, the vacancy will be posted in all branches and operations of the Company subject to the provisions of Article III, Section 3.03(a). A successful applicant from one branch will be allowed to transfer to the unfilled declared vacancy at another branch at the applicable wage rate for the vacancy. Additionally, such employee will retain his union seniority with respect to the provisions of Article III, Section 3.05. 2. In the event that notice is given to employees that the branch or operation in which they are currently employed is to be closed, the affected employees may advise the Company of their interest to transfer to another specified branch of the Company. Should there be a declared vacancy at the “other” branch of the Company, the employee(s) who may be affected by the branch or operation closure will e allowed to transfer to a declared vacancy as per the provisions of Article III, Section 3.03(a). This opportunity will expire upon the closure of the branch or the operation affected. The current regular employee at Lethbridge will be “grandfathered” with respect to retaining the wage rate of the classification that becomes vacant. Therefore, should a vacant position be posted and the successful applicant is the employee who is exercising his rights to an inter-branch transfer under the provisions of this Letter of Understanding, he will not be required to accept the position at the Warehouseman classification rate. This only applies to Darren Ramage upon closure of the Lethbridge branch. If he qualifies for a transfer under this Letter of Understanding, he will be transferred in at the applicable wage rate. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach 47 Jay Wilson Kaj Baart Preston Grant 48 LETTER OF UNDERSTANDING #4 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: WAREHOUSE PICKUPS The parties agree that licensees may arrange to pick-up product at the Company’s warehouse. The Company and Union will meet as required to review the Alberta Service Standards for Customers, and develop any further “Self Pick-up Guidelines” as may be required, to address potential operational issues including liability issues regarding self pick-up. The handling of Warehouse Pickup orders will be performed by BDL employees. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 49 LETTER OF UNDERSTANDING #5 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: PRIVATIZATION OF ALCOHOL SALES The Company and the Union recognize that the privatization of alcohol sales in Alberta will increase the n umber of licensees and reduce average delivery sizes during the term of this Agreement period. In the longer term, a rationalization of the business is expected, resulting in fewer and larger outlets. In response to these market changes, the Company will discuss these issues with the Union with a view to devising practical methods of providing service by the Company in the urban areas as referenced in Article 1.04(b). Further, it is agreed that the Company will work with the Union to investigate having Local 288 perform any work not currently performed, as part of a “third tier distribution” initiative within the Calgary urban area, provided wages, benefits, and other terms of employment are cost and service competitive with the alternatives. If no practical means can be found to do so, then distribution for licensees who cannot be served economically may be sublet. This procedure shall not result in the layoff of regular employees, nor will it be permitted if any qualified regular employee is on layoff. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 50 LETTER OF UNDERSTANDING #6 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: BARGAINING UNIT WORK The Company agrees to work with the Union toward the continuous improvement of the Calgary operation. The parties will endeavour to focus on productivity and efficiency gains within the current business functions as defined in 1.04(a). Further to the above, the Company will also work with the Union to improve our cost and quality of service in the areas of warehouse maintenance, depots, and can densification. If it can be agreed that the Union is able to do the work within a cost and service level which is competitive with the alternatives, then the work will not be contracted out. It is further understood that there may be a requirement at some times of the year to have some of this work contracted out so that the parties can focus on the core business functions. The Company will provide the Union with appropriate costing and service level information. The parties further agree to work together to ensure that the required levels of service to our customers are maintained. The Company and Union will meet to review volume requirements for peak periods and discuss options to manage this volume. Company options for managing the volume may include transferring specific volumes to another facility outside the bargaining unit, if necessary. It is further understand that for up to a four (4) week period, surrounding Stampede period, the Company will be pro-active in managing those peak volumes. The parties agree that any plans to manage peak volume increases will not result in layoff or loss of regular work to bargaining unit employees. It is agreed that the Company will only transfer work that is currently outside of the Calgary City delivery area. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 51 LETTER OF UNDERSTANDING #7 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: LETHBRIDGE CROSS DOCK – DELIVERY OPERATION It is understood and agreed that this applies to the implementation and operation of the Lethbridge Cross Dock – Delivery Operation and the Lethbridge employees. This letter shall expire with the negotiated new expiry date of the Collective Agreement currently being bargained. Notwithstanding the Letter of Understanding Re: Lethbridge Branch Operations and any other provision of the current Collective Agreement, it is understood that: 1. The Lethbridge warehouse will close as soon as operationally feasible and the Company will establish a Cross Dock – Delivery Operation with a Common Carrier of their choice. 2. The Delivery Operation will operate with the one (1) existing senior full-time regular, benefit status Brewers Distributor Ltd. Employee. Any operational requirement for additional delivery staff, including vacation and sick replacement, above the one (1) regular BDL employee shall be provided by the common carriers chosen by the Company. 3. All but the one senior employee will be terminated once the Cross Dock has been established. The junior full-time employee will be entitled to collective agreement severance, and the temporary employees will be provided with notice as per Employment Standards. 4. The Gainsharing Plan will no longer be in effect, nor will an alternative plan be developed. 5. The Company will arrange a meeting to include representatives from management of Brewers’ Distributor, the Union (Local 288), and Lethbridge BDL employees with the Cross Dock operator, prior to implementation. 52 6. It is understood that the Company, Local 288 representatives and Lethbridge employees will continue to participate in joint problem solving and working towards providing a quality, costeffective distribution and container return service for our customers. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 53 LETTER OF UNDERSTANDING #8 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: BANKED TIME-OFF The following arrangements with respect to accumulating overtime for banked time-off will be followed in the administration and application of the current collective agreement between the parties. 1. It is understood that the following arrangement is not to adversely affect the efficiency of the operation of the Company. 2. Each employee must declare his preference with respect to banking of overtime by April 1, he may change that election for each six (6) month period commencing October 1 and April 1 by submitting a written request. 3. All overtime may be banked between April 1 and December 31 to a maximum of 40 hours in any one contract year. Any overtime worked after December 31 will be paid out as incurred. 4. All accumulated time off must be exhausted within the year. Outstanding accumulated time-off as of March 31 of each year will be paid in cash at the rate it was accumulated. 5. Banked time off will be scheduled by mutual consent of the employee and the Company. The Company may request that banked time be arranged so that the efficient operation of the Company is not affected. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 54 LETTER OF UNDERSTANDING #9 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: BRANCH MANNING Notwithstanding any other provisions in the Collective Agreement during the term of this agreement the parties agree that the minimum number of employees during the period this branch is in operation shall be forty-one (41) regular employees. The core number shall be reviewed annually by both parties and upon mutual consent may increase or decrease in response to changes in volumes or methods of operation. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 55 LETTER OF UNDERSTANDING #10 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: PREFERRED JOBS AND OPERATIONAL FLEXIBILITY The Company and the Union recognize the need to achieve market competitiveness and maintain a commitment to the continuous improvement of the Calgary Branch operation. Both parties realize that this will require a focus on operational flexibility, a common-sense approach to job assignments and an ability to work together to address issues which inhibit the efficient operation of the Branch. Both parties also recognize the seniority rights of employees and how it interacts with the day-to-day operations of BDL Calgary. To this end, the parties agree that, notwithstanding Article 3, Clause 3.03(f), a temporary job assignment of a duration of two(2) hours or less shall be filled at the discretion of the Company on the basis of competency and availability, with due regard to seniority. A more senior employee may exercise his/her seniority rights to temporary job assignments that exceed two (2) hours. A temporary job assignment is understood to include any job task or duties, within or outside of any posted classification, as may be assigned from time to time. It is understood that the Warehouse Manager and the Local 288 President will meet, as may be required, to discuss any issues arising from the temporary assignment of work, senior employee job preferences and the need for flexibility. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 56 LETTER OF UNDERSTANDING #11 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: BONUS VACATION DAYS The full-time, regular employees, who remain after the exit of all individuals as described under the prior Letter of Understanding – Operational Transition Plan, will be eligible for six (6) bonus vacation days in each year of the collective agreement. It is understood that eligibility for these bonus days shall not apply to any full-time employees hired after this exit or to temporary employees. It is further understood that these bonus days must be taken as paid time off, as operationally feasible. This Letter of Understanding shall expire with the Collective Agreement. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 57 LETTER OF UNDERSTANDING #12 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: GROUP RRSP PLAN Effective April 2, 2006, entrance into the existing Alberta Hourly Pension plan will cease. Employees who are not participants in the plan on March 31, 2006, will be eligible to participate in the Group RRSP outlined below based on the following eligibility criteria. Benefit status employees will be eligible to participate on the first day of the month coincident with or next following the completion of six months of employment. Other employees will be eligible to participate on the first day of January or July, whichever is coincident with, or next following completion of two years of service where the employee earned at least thirty-five percent (35%) of the YMPE in each of two consecutive calendar years. The Company will contribute a base of two percent (2%) of the employee’s base, straight-time earnings excluding premiums. In addition, the company will contribute fifty percent (50%) of the employee’s contributions up to the limits as per the table below. The employee’s contributions will be a percentage of the employee’s base, straight-time earnings excluding premiums. The percentage of the employee’s and Company’s contributions will be as follows: Years Eligible to participate in Group RRSP Company Base Contributions Employee Contributions Eligible for 50% Match Maximum Company Match Total Contributions Year 1 2% 2% 1% 5% Year 2 2% 3% 1.5% 6.5% Year 3+ 4% 4% 2% 10% The Company shall assume all legal and trustee costs for setting up the Group RRSP and shall assume any administration fees charged by the trustee. It is understood and agreed that all matters of eligibility, coverage and benefits shall be as set out in the relevant plan documents as determined by the carrier. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen 58 Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 59 LETTER OF UNDERSTANDING #13 between BREWERS’ DISTRIBUTOR LTD. and LOCAL 288 UNIFOR RE: Technological Change If the Company wishes to make a technological change in its operations which would have the effect of abolishing existing job classifications or creating new job classifications or which would result in the layoff of any regular employee (in accordance with article 3.05), the Company agrees that, before introducing such technological change, it will meet with the Union to discuss the matter and to attempt to resolve the problems created by such technological change, as well as to attempt to lessen the impact of such technological change on the employees affected. Signed this 27th day of February, 2015 on behalf of: Brewer’s Distributor Ltd. Local 288 Shaun Shaw John Fulton Kyle Oliver Bent Larsen Kevin Bekendam Randy Sallenbach Jay Wilson Kaj Baart Preston Grant 60 Appendix A: Variable Compensation System Purpose: The variable compensation system has the following purpose: To have employees seek to achieve results by sharing common goals To provide a market competitive base hourly rate of pay to be combined with an opportunity to supplement this base hourly rate of pay based on achievement of targets. Pay for performance Principles for the Variable Plan: The following principles apply to the variable plan This plan applies to all bargaining unit employees. The variable component will be calculated based on the base hourly rate multiplied by the active hours worked to a maximum 2080 hours in a calendar year. For greater clarity, hours worked includes time on vacation, statutory holiday pay and Union Business but does not include hours lost due to layoff, STD, WCB, LTD, sickness, or leave of absence. Payout will be made in the form of a one-time annual lump sum payment no later than March 31 of the following year and will be subject to normal statutory deductions. It will be based on performance in the previous calendar year. This variable component will not be rolled into the base hourly rate. Employees’ base hourly rate on December 31st will be used to determine pay-out. For greater clarity, the following will apply for partial years of work: a) Termination – not eligible for any payment b) Resignation – not eligible for payment c) Retirement – pro-rated based on number of hours worked (including vacation) based on the calendar year d) Layoff/closure – based on hours worked 61 How the calculation works: BDL will set a list of common goals for employees each year and the percentages for each Each target will be weighted and the sum of all targets will be 100% Results will be based on full calendar-year performance and will be either achieved in full or considered not achieved (no partial completion) The sum of the achieved targets will determine the overall percentage achievement Possible Calgary Targets: Target % Target Actual Result Was this target met? % to be used in calculation Productivity Full Goods 25% City Delivery 25% Line Accuracy 20% LTA Frequency 20% Breakage 10% Total 100% *Must make one of the two productivity targets identified above to be eligible for payout Sample Calculations: For the following calculations, it is assumed that the maximum number of hours is worked during the year (2080 hours). Employee A @ $26.01 2080 hrs x $26.01 x 2.0% opportunity x 75% achievement = $811.51 Variable Compensation System - Examples *Assuming achievement of 75% Variable Compensation - Warehouse Employee Base 2015 Base Rate $26.01 $26.01 Base Increase Percentage 0.00% Variable Percentage 2.00% Hourly Variable Potential $0.52 Effective Hourly Rate (base rate + variable) $26.53 Yearly Variable Potential (based on 2080 hours) $811.51 62 2016 $26.34 1.25% 2.00% $0.53 $26.86 $821.66 2017 $26.66 1.25% 2.00% $0.53 $27.20 $831.93 Variable Compensation - Transport Employee Base 2015 Base Rate $26.01 $26.91 Base Increase Percentage 0.00% Variable Percentage 2.00% Hourly Variable Potential $0.54 Effective Hourly Rate (base rate + variable) $27.44 Yearly Variable Potential (based on 2080 hours) $839.28 2016 $27.45 2.00% 2.00% $0.55 $27.99 $856.07 2017 $28.00 2.00% 2.00% $0.56 $28.55 $873.19 Variable Compensation - Temporary Employee Base 2015 Base Rate $18.10 $17.83 Base Increase Percentage 0.00% Variable Percentage 2.00% Hourly Variable Potential $0.36 Effective Hourly Rate (base rate + variable) $18.19 Yearly Variable Potential (based on 2080 hours) $556.30 2016 $17.96 0.75% 2.00% $0.36 $18.32 $560.47 2017 $18.10 0.75% 2.00% $0.36 $18.46 $564.67 63
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