AGREEMENT BETWEEN COOPER INDUSTRIES (ELECTRICAL) INC. CROUSE-HINDS DIVISION AND United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union LOCAL 9042 31ST May, 2008 – 30th May, 2011 0 TABLE OF CONTENTS Article 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Schedule "A" Schedule "B" Schedule "C" Title Page Purpose of Agreement Recognition & Scope Relationship Management Rights No Strikes or Lockouts Union Security Union Representation Negotiating Committee Grievance Procedure Discharge and Disciplinary Action Arbitration Seniority Leave of Absence Union Representative Bulletin Boards Report Allowance Call-In Pay Payment for Injured Employees Jury & Witness & Bereavement Pay Safety & Health Plant Holidays Vacation with Pay Wages Hours of Work and Overtime General Insurance, Welfare Benefits & Pension Termination Wages & Job Classifications Benefits Pension Plan Letters of Understanding 1 1 2 3 3 4 4 5 6 7 9 9 10 14 15 15 15 16 16 16 17 19 20 22 23 25 28 28 30 32 34 36 THIS AGREEMENT dated the _22nd__ day of _May_, 2008. BETWEEN: COOPER INDUSTRIES (ELECTRICAL) INC., DIVISION (herein after called the "Company") CROUSE-HINDS AND UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED-INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION (herein after called the "Union") WHEREAS it is the desire of the parties hereto set forth herein the agreement between them for the terms hereof in respect to rates of pay, wages, hours of employment and other conditions of employment to be observed by the parties hereto, and the employees covered hereby, and to provide a procedure for the prompt and equitable adjustment of grievances arising hereunder; NOW THEREFORE IT IS MUTUALLY AGREED between the parties as follows:- ARTICLE 1 - PURPOSE OF AGREEMENT 1.01 The general purpose of this Agreement is to secure for the Employer, the Union and the Employees, the full benefits of orderly collective bargaining, an amicable method of settling any difference which may arise between the parties and to set forth the conditions of employment to be observed by the Company and the Union. 1.02 Wherever the MALE GENDER is used throughout the Articles within the Agreement, it is agreed that the FEMININE GENDER is an acceptable substitute whenever and wherever the feminine gender is applicable. 1 1.03 Where the singular is used throughout the Articles within this Agreement, it is agreed that the plural is an acceptable substitute wherever the plural gender is applicable. ARTICLE 2 - RECOGNITION & SCOPE: 2.01 The Company recognizes the Union as the sole and exclusive bargaining agent for all its employees at Mississauga, save and except supervisors, managers, office, technical and sales staff. 2.02 Persons, whether employed by the Company or from outside who are not members of the bargaining unit, shall not perform work on any jobs which are included in the bargaining unit, except for the purpose of instruction or in the case of emergency when bargaining unit employees are not available. The use of temporary and/or contract workers who are not members of the bargaining unit shall not result in the direct layoff of bargaining unit employees. However, in no event shall contract workers work in excess of 45 days. 2.03 Should any of the present operations be moved to a location(s) outside of the boundaries of Mississauga, this Agreement shall be extended to cover such location(s) provided such locations are within a 25 mile radius of the present plant site at 5925 McLaughlin Road, Mississauga, Ontario L5R 1B8. 2 ARTICLE 3 - RELATIONSHIP: 3.01 The Company and the Union agree that there will be no intimidation, interference, restraint, coercion or discrimination exercised or practiced by any of its representatives or members with respect to any employee because of his or her participation or non-participation in the Union, and no employee will engage in Union activity, or solicitation for Membership during working hours except with the permission of the management or as specifically provided for in the Agreement. 3.02 The Company and the Union agree to abide by the provisions of the Ontario Human Rights Code as amended. 3.03 The Union agrees that, except as provided for in this Agreement, there will be no union activity on the premises of the Company during the employees working hours except by agreement with the Company. ARTICLE 4 - MANAGEMENT RIGHTS 4.01 Union Acknowledgement. The Union acknowledges that it is the exclusive function of the Employer to: (a) Maintain order, and efficiency; (b) Hire, discharge, classify, direct, transfer, promote, demote, layoff, and suspend or otherwise discipline employees for just cause subject to the right to lodge a grievance as herein provided; (c) Generally manage the industrial enterprise in which the Employer is engaged; (d) Make, enforce and alter from time to time fair and reasonable rules and regulations to be observed by all employees. 3 4.02 Application. The Employer agrees that the functions described in 4.01 will be exercised in a manner consistent with the provisions of this Agreement. 4.03 Additional Reservations. All of the functions, powers or authority of the Employer which are not specifically abridged, delegated or modified by this Agreement, are retained by the Employer; provided, however, that the exercise of such authority shall not be used in conflict with any of the provisions of this Agreement. ARTICLE 5 - NO STRIKES OR LOCKOUTS 5.01 In as much as this agreement provides an orderly procedure for the settlement of grievances, neither the union nor any employees shall take part in or call or encourage any strikes, or stoppage of work of production, which shall in any way affect the operation of the Company. The Company agrees that it will not cause or direct any lockouts of employees. ARTICLE 6 - UNION SECURITY 6.01 The Company shall deduct from the pay of each member of the bargaining unit, weekly, such union dues, fees and assessments as prescribed by the Constitution of the Union. 6.02 The dues so deducted shall be remitted along with a list of the names of employees from whom such deductions have been made within one week of the end of the month payable to the International Treasurer, United Steelworkers, P.O. Box 9083, Commerce Court, Postal Station, Toronto, Ontario, M5L 1K1. (i.e. Dues for the month of May, would be due to be submitted by the end of the 3rd week of June.) 4 6.03 The monthly remittance shall be accompanied by a statement showing the names of each employee from whose pay deductions have been made and the total amount deducted for the month. Such statements shall also list the names of employees from who no deductions have been made and the reasons why, along with any forms required by the International Union. 6.04 The Union agrees to indemnify and save the Company harmless against all claims or other forms of liability that may arise out of, or by reason of, deductions made or payments made in accordance with this Article. 6.05 The Company agrees to print the amount of total dues deductions paid by each employee for the previous calendar year on the Income Tax T4 form. ARTICLE 7 - UNION REPRESENTATION 7.01 The Company acknowledges the right of the Union to appoint or otherwise select Shop Stewards for the purpose of representing employees in the handling of complaints and grievances. Such Stewards will have preferred seniority as long as he/she has the ability to do the work available. 7.02 The Company agrees to recognize three (3) stewards for the Day Shift, plus one (1) additional shop steward for each shift other than the Day Shift and one alternate shop steward on the afternoon shift. The Union must inform the Company regarding the departments or areas represented by each steward. The Union may appoint one (1) of the stewards as Plant Chairperson 7.03 The Company shall be notified by the Union of the names of the Shop Steward and any changes made thereto. 5 7.04 The Company agrees to recognize and deal with a Union Grievance Committee of not more than three (3) employees, one of whom shall be the Plant Chairperson or President. 7.05 Time spent by employees and stewards in the processing of grievances during working hours shall be paid for by the employer and confined to the amount of time reasonably necessary. Processing of grievances is the discussion between the employee, steward and supervisor and meetings with supervision or management mutually scheduled in accordance with the grievance procedure. All other union activity pertaining to grievances shall be conducted during non-working time. Employees and stewards shall not leave their work to undertake the handling of any grievances unless they have first secured permission from their supervisor. The employer agrees that such permission shall not be unreasonably withheld, and the union agrees that such privilege shall not be abused. All grievances shall be processed promptly and without any unreasonable delay. The time at which a grievance is discussed shall be determined by mutual agreement. Grievances shall be processed during working hours. ARTICLE 8 - NEGOTIATING COMMITTEE 8.01 The Company agrees to recognize and deal with a Negotiating Committee of not more than three (3) employee(s), plus the Plant Chairperson or President, who shall be regular employees of the Company, along with representatives of the International Union. 8.02 The Negotiating Committee is a separate entity from other committees and will deal only with such matters as are properly the subject matter of negotiations, including proposals for the renewal or modification of this Agreement. 6 8.03 The Company agrees to allow members of the Negotiating Committee the day off work without loss of pay on each day the Committee is scheduled to meet with members of Management. ARTICLE 9 - GRIEVANCE PROCEDURE 9.01 Preamble. Any complaint or grievance arising under this Agreement relating to administration, interpretation or alleged violation of the Agreement shall be submitted as quickly as possible after the circumstances giving rise to the grievance have occurred or originated and be processed and dealt with in accordance with the terms and provisions set forth in this article. 9.02 It is generally understood that an employee has no complaint or grievance until he, either directly or through the Union, has first given his immediate supervisor an opportunity to adjust the complaint. 9.03 If, after registering the complaint with the Supervisor and such complaint is not settled within two (2) regular working days or within any longer period which may have been agreed to by the parties, then the following steps of the Grievance Procedures may be invoked: Step One The grievance shall be submitted in writing to the Supervisor either directly or through the Union. The Supervisor shall meet with the employee's Union Steward within four (4) working days of the receipt of the grievance in an attempt to resolve the grievance. The grievor may be present at this meeting if requested by either party. The Supervisor shall within a further four (4) working days give his answer on the grievance form and return it to the Union. Step Two If the decision of the immediate Supervisor is not satisfactory, the grievance may be submitted to the 7 Operations Manager who shall, within five (5) working days hold a meeting between the Union Grievance Committee (not to exceed three (3) in number) and the appropriate representatives of Management, in a further attempt to resolve the grievance. The grievor may be present at this meeting if requested by either Party. The Operations Manager shall within a further five (5) working days give his decision in writing, on the grievance form and return it to the Union. Step Three If the grievance remains unsettled at the conclusion of Step Two, the grievance may be submitted to the Human Resources Manager who shall within five (5) working days hold a meeting between the Union Grievance Committee (not to exceed three (3) in number), and the appropriate representatives of Management, in a final attempt to resolve the grievance. A Staff Representative of the Union and the Grievor may be present at this meeting if requested by either Party. The Human Resources Manager shall within a further five (5) working days give his/her decision, in writing, to the Union on or attached to the grievance form. 9.04 Time for Filing of Grievances. No complaint, difference or dispute may be submitted or considered under the grievance procedure unless it has been presented within ten (10) working days from the time of its occurrence, except where an alleged grievance involves money matters, and in such instances the grievor shall have fifteen (15) working days to submit the grievance. 9.05 If final settlement of the grievance is not reached at Step Three then the grievance may be referred in writing by either Party to Arbitration as provided in Article 11, Arbitration, at any time within thirty (30) calendar days after the decision is received under Step Three. 8 ARTICLE 10 - DISCHARGE AND DISCIPLINARY ACTION 10.01 A claim by an employee who has completed probation, that he has been discharged or suspended without just cause, shall be a proper subject for a grievance, if a written statement of such grievance is lodged at Step 3 of the grievance procedure within ten (10) working days after the date of the discharge or suspension. The union will be given copies of all discharges and suspensions. 10.02 When an employee has been dismissed without notice, he shall have the right to interview his Shop Steward for a reasonable period of time, before leaving the Company premises. 10.03 All derogatory notations on an Employees Record shall not be considered for the purpose of discipline if there has been a period of twelve months without any derogatory notations or discipline actions with respect to the employee. The Company may dismiss an employee at any time during the employee's probationary period, if in the opinion of the Company the employee is not satisfactory. The Company's decision to dismiss the employee shall not be made in bad faith. The Company and the Union acknowledge that this constitutes a lesser standard within the meaning of section 43.1 (2) of the Labour Relations Act. 10.04 ARTICLE 11 - ARBITRATION 11.01 When either Party to the Agreement requests that a grievance be submitted for Arbitration, they shall make such request in writing addressed to the other Party to the Agreement. 11.02 The Arbitration Procedure incorporated in the Agreement shall be based on the use of a single Arbitrator. 11.03 When either Party refers a grievance to Arbitration, they shall propose three (3) acceptable arbitrators. If none of the 9 proposed arbitrators are acceptable to the other Party, they shall propose three (3) arbitrators. If an acceptable arbitrator is not agreed upon, the Parties may either submit more proposed arbitrators or request the Ministry of Labour to appoint an arbitrator. 11.04 11.05 Except where otherwise provided for in this Agreement, each of the Parties hereto will bear its own expense with respect to any arbitration proceedings. The Parties hereto will bear jointly the expenses of the Arbitrator on an equal basis. No matter may be submitted to Arbitration, which has not first been properly carried through all preceding steps of the Grievance Procedure. 11.06 The Arbitrator shall not be authorized, nor shall the Arbitrator assume authority, to alter, modify, or amend any part of this Agreement, or to make any decision inconsistent with the provisions thereof, or to deal with any matter not covered by this Agreement. 11.07 The decision of the Arbitrator shall be final and binding on the Parties. ARTICLE 12 - SENIORITY 12.01 An employee shall not have any seniority, and shall be considered as a probationary employee until he shall have attained seniority status by actually working a total of forty-five (45) days. These forty-five (45) days must be accumulated within a twelve (12) month period. 12.02 (a) The Parties recognize that job opportunity and security shall increase in proportion to length of service. It is therefore agreed that in all cases of vacancy, promotion, demotion, transfer, layoff, termination and recall after layoff or termination, senior employees shall be entitled to preference. 10 (b) In recognition, however, of the responsibility of the Management for the efficient operation of the plant, it is understood and agreed that in all cases referred to in section 12.02 (a) Management shall have the right to pass over any employee if it is established that the employee does not have the qualifications and physical fitness to perform the work. (c) Award of A Bid Job. The vacancy shall be awarded to the employee making application therefore, having the greatest amount of plant wide seniority provided such employee possesses the required ability and qualifications to satisfactorily perform the work involved without training. The selection process shall consist of a review of the applicant's employment records and an interview regarding their job related abilities. Where skill and ability are in question, the employee will be given up to five days to demonstrate the skill and ability to do the job. Once awarded the bid job, the successful bidder shall be prohibited from bidding on another posting for a period of six months. If no employee qualifies for the opening, the job may be filled from an outside source. (d) The Company agrees that at least two (2) times per calendar year they shall offer voluntary training opportunities to bargaining unit employees on a seniority basis. The Union agrees that the Company has the right to decide where the training is needed. 12.03 Seniority shall be maintained and accumulated until it is lost under 12.04 below. 12.04 An employee shall lose his seniority standing and his name shall be removed from all seniority lists for any one of the following reasons: (1) If the employee voluntarily quits; (2) If the employee is discharged for just cause and is not reinstated in accordance with the provisions of this Agreement; 11 (3) If the employee is laid off and fails to return to work within five (5) work days after he has been notified to do so by the Employer by registered mail to his last known address (a copy of such notice shall be sent to the Union). (4) Is employed less than two (2) years and is laid off for a period equal to his length of service at the date the layoff began; (5) Is employed two (2) years or more and is laid off for a period of two (2) years; (6) Accepts employment with another employer while on a leave of absence; (7) Is absent from work for three (3) consecutive working days without notice to the Employer unless the giving of notices was impossible under the circumstances. (8) Fails to return to work at the expiration of a granted leave of absence, or, in the event the employee is unable to return for bona fide reasons beyond the employee's control, fails to return as soon as the employee is able to do so. 12.05 Seniority shall be on a plant-wide basis and shall mean total length of continuous service in the bargaining unit as defined in Article 2. 12.06 President and Shop Stewards will be issued an up-to-date seniority list every two (2) months. A copy of such seniority list shall be mailed to the area office of the Union and a copy posted on the plant bulletin boards for employees inspection. The Company agrees to provide the Union every December 31st, with a Seniority List which includes the employees addresses, telephone number and rate of pay. 12.07 When reductions in the working force are required, such layoffs will occur at the end of a pay period. Whenever possible, the company will give employees notice of the layoff at least one working day in advance of the last day worked. 12 12.08 When a new job is created or a permanent vacancy occurs in a job in the Bargaining Unit, other than common labour or the lowest rated job, as listed in Schedule A attached hereto, such job openings shall be posted on the Employer's bulletin boards for a period of five (5) working days and the notice shall contain the Job title, applicable rate of pay, qualifications and required safety equipment, if any. The provisions of this Section are not applicable to openings in lateral or lower rated job classifications, and such openings shall continue to be filled by the Employer without posting. Probationary employees are eligible to make application. Jobs will be awarded in accordance with Article 12.02. 12.09 For the purpose of this Agreement a vacancy shall be defined as any unfilled position where there is work being performed. 12.10 Employee Absence for Illness or Injury. Employees who are absent from their employment as a result of injury or illness shall retain their seniority to the extent hereinafter provided: (a) In the case of an employee with less than two (2) years seniority for a period equal to his length of service at the date such absence began, and (b) In the case of an employee with two (2) years or more of seniority for a period of two (2) years from the date the absence began. (c) This clause (12.10) shall be administered such that discharges will be based upon absenteeism where there is no reasonable expectation of an employee's return to work. (d) An employee's benefit coverage shall cease when the absence is for a period equal to his length of service at the date such absence began, not to exceed two (2) years, unless specifically required by law. The absence shall be for any reason. 12.11 Employees transferred or promoted to positions not subject to this agreement will retain their seniority upon transfer or 13 promotion to positions outside the bargaining unit, but shall not accumulate seniority while employed in such positions. Once such employees have been out of the bargaining unit for a continuous period of six (6) months, their bargaining unit seniority will be forfeited. ARTICLE 13 - LEAVE OF ABSENCE 13.01 13.02 (a) Leave of Absence. All regular employees may be granted a leave of absence without pay for good cause. Applications for leaves of absence, other than emergency purposes, shall be determined on the basis of the Employer's needs at the date the applications are made. Except in the case of emergencies, all applications for leaves of absence shall be submitted in writing no less than one (1) week prior to the date on which the requested leave could begin. In the case of granted leaves the employee must return to work at the expiration of the leave and a failure to do so will result in termination of employment. (b) Employees will be entitled to pregnancy and parental leave according to the Employment Standards Act. (c) Employees shall apply for medical leaves according to 13.01 (a). These leaves shall be granted with proper medical documentation. Termination of medical leaves will occur when an employee presents the proper medical release information to the Company or according to Article 12 Section 12.10. (a) A maximum of three (3) employee(s) who have been elected or appointed by the Union to attend Union conventions or conferences or other Union business shall be granted a leave of absence for this purpose. The Union will notify the Company in writing, not less than five (5) working days prior to the start of the leave, of the name of the delegate. The Company shall continue the pay of such employee and submit an invoice to the Local Union for payment. Such leaves 14 (b) shall be without pay, limited to one calendar week duration per leave to an aggregate of 50 days per year. Leave of absence without pay or other benefits shall be granted for up to one (1) year to any employee who is elected or appointed to a full time Union office. Seniority shall continue to accrue for the length of such leave. ARTICLE 14 - UNION REPRESENTATIVE 14.01 An authorized representative of the Union who is not employed by the company shall be authorized to meet with local union representatives on company premises, after giving advance notice to the company. The company shall designate and have available an appropriate place for the meeting. ARTICLE 15 - BULLETIN BOARDS 15.01 The Company will provide three (3) bulletin boards in a mutually satisfactory location in the plants for the convenience of the Union in posting notices of Union activity of a noncontroversial nature. All such notices must be signed by the proper officer of the Union and will be provided to the company for information purposes prior to posting. ARTICLE 16 - REPORT ALLOWANCE 16.01 In the event that an employee reports for work on his regular shift, without having been previously notified not to report, he will be given at least four (4) hours work at his regular rate of pay or if no work is available, he/she will be paid the equivalent of four (4) hours at his regular rate of pay in lieu of work. This provision shall not apply when there is a lack of work due to a situation beyond the control of the Company. 15 ARTICLE 17 - CALL-IN-PAY 17.01 Any employee who has completed his shift and has left the Company's premises and is then recalled to work extra time shall be paid at time and one-half, and will not receive less than the equivalent of four (4) hours pay at the employee's regular rate of pay for such additional work. This paragraph does not apply to an early start of the employee's shift. ARTICLE 18 - PAYMENT FOR INJURED EMPLOYEES 18.01 In the event that an employee is injured in the performance of his duties, he shall, to the extent that he is required to stop work and receive treatment, be paid for wages the remainder of his shift on day of injury. If it is necessary, the Company will provide on the date of accident, or arrange for, suitable transportation for the employee to the doctor or hospital and back to the plant and/or to his home as necessary. ARTICLE 19 - JURY & WITNESS & BEREAVEMENT PAY 19.01 Jury Duty. In the event that an employee is called for jury duty or duty required to act under Coroner's inquest or as a Crown witness, the company will compensate him for loss of earnings by an amount equal to the difference between the court's reimbursement and his normal pay immediately for such duty. The Company will require proof of such call and pay before payment as provided herein is made. For purpose of this clause all employees shall be considered as being on day shift. 19.02 Bereavement Leave (a) The Company agrees to grant leave of absence with pay for the purposes of attending the funeral or family service of a member of the immediate family in accordance with the following; 16 A leave of absence of up to four (4) days as described above, in the event of the death of a parent, spouse, child, stepchild raised in the household of the employee, brother or sister. A leave of absence of up to two days as described above, in the event of the death of a parent-in-law, sisterin-law, brother-in-law, grandparent and grandchild. In order to receive payment for bereavement leave, employees will be required complete the prescribed form available from the Company, or otherwise provide the information requested by the Company, within one (1) week of their return to work. If the funeral is outside Canada, the Company will accept an obituary notice or similar evidence in lieu of attendance at the funeral to qualify the employee for bereavement leave pay. (b) An employee must notify the Company prior to the commencement of any bereavement leave unless such notification is impractical. In the event such notification is impractical an employee must notify the Company within three (3) working days of commencing such bereavement leave. The Company agrees to grant requests for extended non-paid bereavement leave as the circumstances warrant. ARTICLE 20 - SAFETY & HEALTH 20.01 The Company and the Union shall maintain an Occupational Safety and Health Committee consisting of three (3) members elected or appointed by the Union and three (3) members appointed by the Company. Worker members of the Joint Health and Safety Committee shall be permitted one (1) hour to prepare for each committee meeting. 20.02 The general duties of the Health and Safety Committee shall be; 17 (a) Meet monthly during regular working hours (b) Conduct a monthly inspection (c) Investigate serious accidents. 20.03 The company will provide safety equipment and protective clothing necessary to protect employees from injuries arising from their employment with the company. 20.04 Safety Glasses. Safety glasses, where required, shall be supplied to the employees without cost. 20.05 Safety Shoes. Employees whose jobs require the wearing of safety shoes (shoes with steel caps and steel arches) upon ratification, will be reimbursed up to one hundred and twenty dollars ($120.00) in year one (1) and two (2) of this contract, increased to one hundred and twenty-five ($125.00) in year three (3). 20.06 Prescription Safety Glasses. Every two years the company will reimburse employees the following costs for prescription safety glasses: seventy-five dollars ($75.00) single vision, one hundred and five dollars ($105.00) bifocal, one hundred and sixty-eight dollars and twenty-five cents ($168.25) progressive (no-line bifocal). Employees may purchase approved prescription safety glasses through an eye-care dispenser of their choice. A signed authorization form indicating that the frames and lenses meet C.S.A. specifications (available in the H.R. department) and a proper receipt must be presented to H.R. for reimbursement. 20.07 Disabled Employee. The Company will make an effort as required by the Worker's Compensation Act to assign an employee who has been temporarily or permanently impaired physically due to compensable injury that occurred during the course of employment, or due to an occupational disease contracted during employment, to a job that the employee is able to perform notwithstanding the normal job posting, seniority and classification provisions of the collective agreement. 18 ARTICLE 21 - PLANT HOLIDAYS 21.01 The Company will observe the following plant holidays: New Year's Day Victoria Day Civic Holiday Thanksgiving Day Christmas Day Family Day Boxing Day Good Friday Canada Day Labour Day Floater Day Floater Day (as of 2nd year) Should one of the above statutory holidays fall on a Saturday or Sunday, another day shall be observed as the holiday by mutual agreement. The second floater day shall be at the employee’s discretion, subject to operational requirements. 21.02 Eligible employees shall receive eight (8) hours pay for each holiday multiplied by the employee's regular rate of pay. 21.03 Eligibility. To be eligible for the holiday pay allowance an employee must work the regularly scheduled hours of work of the plant's operation on the work days immediately preceding and succeeding the day on which the recognized holiday is celebrated. 21.04 When any of the holidays are observed during an employee's scheduled vacation period he shall receive holiday pay as provided in Clause 21.02 if he is eligible for such payment under Clause 21.03 and shall be granted an additional day off. 21.05 Any authorized work performed by an employee on any of the above named holidays shall be paid at the rate of double time in addition to holiday pay. 19 21.06 Recognized Holiday Occurring During Granted Leave of Absence. An employee otherwise eligible for holiday pay who is absent by reason of a granted leave of absence, which commenced within two (2) weeks of the date on which the holiday is celebrated, shall receive payment for the holiday, provided that the employee returns and resumes working at the expiration of the granted leave. ARTICLE 22 - VACATION WITH PAY 22.01 (a) An employee who has less than one (1) year of service as of June 30th of the vacation year shall be entitled to 4% of the employee's gross earnings for the year ending June 30th such employee shall receive time off according to the following schedule. Month of Hire Vacation Days July 1 through Jan. 31 of vacation year 5 February 4 March 3 April 2 May 1 Employees entitled to a vacation allowance under this paragraph may, upon request, be permitted to expand the amount of vacation time for which they are eligible to the balance of the week in which such employees are scheduled for their vacation. (b) An employee who has one (1) year of service as of June 30th of the current vacation year shall be entitled to (2) week's vacation with pay. (c) An employee who has five (5) years of services as of June 30th of the current vacation year shall be entitled to (3) weeks of vacation with pay. 20 (d) An employee who has completed twelve (12) years of service as of June 30th of the current vacation year shall be entitled to four (4) weeks of vacation with pay. (e) Vacation pay for each week of vacation entitlement shall be two (2%) of gross earnings or forty (40) hours of pay whichever is greater, for employees who have worked a minimum of 1250 hours in the vacation year. Employees who have not worked 1250 hours in the vacation year will receive two (2%) of gross earnings for each week of vacation entitlement. (f) Vacation shall not be accumulated but must be taken within the current calendar year, however, vacation not scheduled prior to the April 15th cut-off date, shall be on a first-come, first-serve basis, mutually agreed to between the company and the employee, subject to availability. (g) Gross earnings shall mean total taxable earnings for the fifty-two (52) week period from July 1 through June 30. (h) An employee who leaves the employment of the company for any reason prior to June 30th will be paid for vacation that has been accrued but has not been taken or paid for. 22.02 Vacation Prior to June 1. Employees may book one or more vacation days prior to June 1st, and will be paid for those days. The amount paid for individual vacation days taken prior to June 1st will be deducted from their vacation entitlement payout. 22.03 Rescheduling of Vacation Due to Injury or Illness. An employee who is disabled due to illness or injury at the time such employee's vacation is scheduled to begin shall be rescheduled to the extent possible for a vacation in the current calendar year. Rescheduling as herein provided is subject to the requirement that the employee shall have furnished the Company with a physician's certificate acceptable to the Company, setting forth the details pertaining to the employees disability. 21 22.04 Time spent on disability leave for pregnancy shall be counted as time worked for the purpose of this paragraph, up to the maximum of one (1) year of E.I. eligibility. Vacation pay calculated shall include money for the leave in addition to any wages actually earned. ARTICLE 23 - WAGES 23.01 The Company agrees to pay and the Union agrees to accept for the term of this Agreement, the wages as set out in the Wage Schedule "A" attached hereto and forming a part of this Agreement. 23.02 Temporary Transfer Temporary transfers will not be used to transfer employees on a permanent basis and shall not be used to bypass job posting (Article 12.02 Award of Bid Job). Therefore, temporary transfers will not exceed ten (10) working days. This ten (10) days does not count in case of sickness, accident, or authorized leave of absence. The Company will determine from which job classification (Schedule 'A' 2) a temporary transfer will be taken. Temporary transfers will be offered to senior employees first outside the classification and if they refuse, the Company will offer the temporary transfer to the more junior employees outside the classification, in accordance with seniority on the shift the transfer takes place. If all employees refuse, the Company will transfer the least senior employee outside the classification the transfer takes place. If an employee is transferred for the convenience of the Company he shall receive the job rate for the job classification or his regular job classification rate, whichever is greater. If the transfer is for the convenience of the employee or to enable the employee to avoid layoff and if the rate of the job classification to which he is transferred is less than the 22 employee's regular classification rate of pay, he shall receive the classification rate of pay. 23.03 Payment of Wages The Company agrees that all employees shall be paid weekly by direct banking deposit on Thursday, but in no event later than Friday. 23.04 New or Changed Jobs The Company agrees to negotiate with the union the rate of pay for any new or changed job prior to the rate being installed. However, if the Parties fail to agree on the new rate, they shall install the new rate proposed by the Company and the Union shall have the right to grieve whether or not the rate is proper based on its relationship to related or similar jobs presently in existence. ARTICLE 24 - HOURS OF WORK AND OVERTIME 24.01 It is hereby expressly understood and agreed that the provisions of this Article are for the purpose of computing overtime and shall not be construed to be a guarantee of the hours of work to be done per day or per week or otherwise. 24.02 Standard Work Week Defined. The standard work week shall consist of forty (40) hours per week, Monday through Friday inclusive. Eight (8) hours shall constitute a regular day's work. The hours per day and the days per week shall be consecutive except for the luncheon period and when a recognized holiday hereunder intervenes. 24.03 Shift Hours - Modification. Shift hours, consisting of a day shift and an afternoon shift are: Day Shift I 7:00 a.m. to 3:30 p.m., with one-half (1/2) hour lunch Afternoon Shift 3:30 p.m. to 12:00 a.m., with one half (1/2) hour lunch period. An exception to the above will be the afternoon shift where the start time for up to eight (8) employees could be as early as 2:30 p.m. 23 Shift assignments will be in accordance with Article 24.08 24.04 Rest and Wash-up Periods. Employees shall receive a fifteen (15) minute paid rest period in the first and second half of each shift. Where employees are scheduled for more than two (2) hours of overtime, they will be granted a paid ten (10) minute rest period at the time designated by the Employer. Employees shall receive a three (3) minute paid wash-up allowance prior to the end of the shift. 24.05 Overtime. Time and one-half (1½) of the single rate of pay shall be paid for all work in excess of eight (8) hours in any one (1) day and for all time worked on Saturday, as such. Two times (2x) the employee's regular hourly rate shall be paid for all work performed on Sunday and on days on which a recognized holiday is celebrated. In order to be eligible for the overtime on Sunday, an employee must work the preceding Saturday. Overtime hours on Sunday must not exceed hours worked on Saturday. No Pyramiding. In no event shall overtime or premium pay provided for in this Agreement be pyramided or duplicated. Whenever two (2) provisions are applicable to the same time worked, only the one (1) yielding the largest amount of pay shall be applied to satisfy the requirement of all applicable provisions. 24.06 24.07 (a) Overtime work shall be on a voluntary basis, and it is mutually agreed that overtime shall be distributed as equally as possible among the employees who normally perform the work. (b) For the purpose of distributing overtime it shall be distributed equally in the following departments by the employees working in the affected department. 1. 2. 3. Assembly Department Shipping Maintenance 24 4. 5. 6. Set-Up Receiving Fabrication (c) Employees temporarily assigned to a particular job will be offered any available overtime in that particular job before other employees. (d) Employees who commit to weekend and/or holiday overtime work and do not show up for their shift will be charged with an absence for attendance purposes. 24.08 Shift Choice: All shift work shall be on seniority basis, and the senior employee shall have first choice of shifts; however, it is agreed that if two (2) employees in the same capacity mutually agree to their choice of shifts, then the Employer shall sanction such Agreement. 24.09 There shall be a shift premium of fifty (.50¢) cents per hour. ARTICLE 25 - GENERAL 25.01 Sexual Harassment in the Work Place. The Company shall maintain a working environment which is free from sexual harassment. (a) Scope. This policy applies to all employees in the Bargaining Unit of Cooper Industries, Crouse-Hinds Division, Mississauga. (b) Purpose. The purpose of this policy is to express the Company's position that it will not tolerate sexual advances or harassment in the workplace and to comply with Provincial Regulations as stated in the Human Rights Code, 1981, Ontario. (c) General Policy. It is the Company's policy to maintain a work environment free from discrimination and to prohibit sexual advances or harassment among its employees. Given the nature of this discrimination, the Company realizes that the question of whether a particular action constitutes sexual harassment requires a determination based upon the facts. 25 The confidentiality of such information should be emphasized to protect innocent men and women from the effects of false accusation. The Company expects all employees to act responsibly in maintaining a work environment free of discrimination in any form. (d) Definition of Sexual Harassment or Advances. Unwelcome sexual advances, requests for sexual favours and other verbal or physical conduct of a sexual nature constitutes sexual harassment when: (i) Submission of such conduct is made either explicitly or implicitly a term or condition of an individual's employment. (ii) Submission to, or rejection of, such conduct by an individual is used as a basis of employment decision affecting such individual. (iii) Such conduct has the purpose or effect of substantially interfering with the individual's work performance or creating an intimidating, hostile or offensive working environment. (e) The following three-step program of Procedure. reporting, investigation and corrective measures is to be used for suspected incidents of sexual harassment. (i) Reporting. Whenever an employee has reason to believe he/she has been subjected to a discriminating work environment because of sexual advances or harassment, the employee should promptly report such incidents to the International Union Representative or any management official they choose. The individual receiving the complaint is to report to the Employee Relations Manager who will inform the Vice-President of Employee Relations. No retaliation in any form will be tolerated toward an employee reporting such incidents. (ii) Investigations. Upon notice of any reported incidents of alleged sexual advances or harassment, the Employee Relations Department 26 with a representative of the International Union will promptly conduct a full investigation of the matter. The investigation will include an opportunity for the accused employee to be heard. (iii) Corrective Measures. Upon completion of the investigation, the Employee Relations Department will prepare a full report and discuss with the appropriate managers and International Union Representatives. If the investigation substantiates the accusations, appropriate action will be taken by the responsible manager. This may include but not be limited to: reprimand, suspension and dismissal, depending upon the nature and severity of the offence. Appropriate action will also be taken in the event the accusations are intentionally false and malicious in intent. (f) 25.02 Every manager and supervisor is Responsibility. responsible for maintaining a work environment free from sexual harassment and to take appropriate action if an incident occurs. The Manager of Employee Relations will ensure appropriate actions are taken. Humanity Fund. The Company agrees to deduct on a weekly basis the amount of (not less than $0.01) per hour from the wages of all employees in the bargaining unit for all hours worked and, prior to the 15th day of the month following, to pay the amount so deducted to the "Humanity Fund" and to forward such payment to the United Steelworkers, National Office, 234 Eglinton Avenue East, 7th Floor, Toronto, Ontario M4P 1K7, and to advise in writing both the Humanity Fund at the aforementioned address and the Local Union that such payment has been made, the amount of such payment and the names of all employees in the bargaining unit on whose behalf such payment has been made. 27 ARTICLE 26 - INSURANCE, WELFARE BENEFITS & PENSION 26.01 The Company agrees that during the terms of this Agreement they will provide the Insurance-Welfare Benefits as set out in Schedule "B" attached hereto and made part of this Agreement, for all employees and their eligible dependants. 26.02 The Company further agrees that all eligible employees shall be covered by the terms of the Company Pension Plan as set out in Schedule "C" attached hereto and made part of the Agreement. ARTICLE 27 - TERMINATION 27.01 This Agreement shall become effective on the 31st day of May 2008 AD, and shall continue in effect up to and including the 30th day of May, 2011 AD. 27.02 Either party desiring to renew or amend this Agreement may give notice in writing of its intentions during the last ninety (90) days of its operations. 27.03 If pursuant to such negotiations, an agreement is not reached on the renewal or amendment of the agreement, nor a new agreement made prior to the current expiration date, this Agreement shall continue in full force and effect until a new agreement is signed between the parties or until the conciliation proceedings prescribed by law have been completed, whichever shall first occur. 28 29 SCHEDULE "A" WAGES & JOB CLASSIFICATIONS 1. Lump Sum Payment. In year one (1) of this agreement, a payment of one thousand, three hundred and fifty dollars ($1350.00), payable under separate cheque to all active bargaining unit members, and inactive employees when they return. 2. Wage Rates. The wage rates to be paid to employees covered by this Agreement are set forth below. 3. Classification and Hourly Rates of Pay Effective: 4. May 31, 2008 May 31, 2009 May 30, 2010 Assembler – I Assembler – II Assembler – III Assembler – IV $16.53 $15.45 $15.02 $14.03 $16.93 $15.85 $15.42 $14.43 $17.33 $16.25 $15.82 $14.83 Material Handler – I Material Handler – II Material Handler – III Material Handler – IV $16.83 $16.13 $15.86 $14.76 $17.23 $16.53 $16.26 $15.16 $17.63 $16.93 $16.66 $15.56 Fab/Machining – I Fab/Machining – II $17.02 $15.56 $17.42 $15.96 $17.82 $16.36 Assembly Set-Up $15.92 $16.32 $16.72 Maintenance $15.02 $15.42 $15.82 Equipment Maintenance $16.99 $17.39 $17.79 Skid-Making $15.40 $15.80 $16.20 Wire Person $19.02 $19.42 $19.82 Level I Responsibilities. A Level I employee is responsible for instructing, training, and otherwise leading employees in the group in the performance of their work. The Level I employee is also responsible for the quality of the work performed by the group. 30 5. Inventory Rate. On annual inventory, employee will receive rate of employee's regular job or Material Handler Level III, whichever is greater. SCHEDULE "B" BENEFITS 1. Weekly Disability Pay. Employees who have completed ninety (90) days of employment and who become disabled by reason of nonoccupational illness or accident will be eligible for weekly disability payments (on a fully co-ordinated basis with payments from other sources) for the period of their disability, but not exceeding twentysix (26) weeks during any 12 month period as follows. Commencing with Disability that occurs on or after June 1, 2008, the weekly rate will be $280.00 per week. As a condition of the eligibility for disability pay, the employee shall furnish the Employer a doctor's statement after three (3) consecutive days' absence. Payments of weekly disability pay commence: 2. (a) On the fourth (4th) day of absence in the case of illness for which the employee is not hospitalised, and (b) From the first (1st) day of absence in the case of an accident or illness for which the employee is hospitalised. (c) From the first (1st) day of absence in the case where ambulatory/outpatient care (i.e., day surgery) is required. Insurance. benefits: The employer will provide the following insurance (a) Full cost of the Ontario Health Insurance Plan (semi-private); (b) One-half (1/2) of the cost of the Canadian Pension Plan; 31 (c) Life insurance in an amount equal to the employee's annual gross earnings; (d) Drug Plan under which employee pays the first Ten Dollars ($10.00) for single coverage, and the first Twenty Dollars ($20.00) for family coverage per year, and thereafter are reimbursed one hundred percent (100%) of cost for drugs and related items, as defined by the terms of the Group Insurance Policy (Manulife Group Policy #7093-12-000-002), which is currently in effect; (e) The cost of a dental plan effective June 1, 2002, benefit levels to include Preventative at 100%, Minor Restorative (including endodontics and periodontics) at 80%, Major Restorative at 60%, and Orthodontic at $1,000.00 per child per lifetime. Preventative, Minor Restorative and Major Restorative combined have a $1,000.00 per person per calendar year maximum. The annual deductible is $25.00 per person and $50.00 per family. The services covered will be paid in accordance with the current ODA Fee Guide. Employees may elect to enrol their dependants in the same dental plan, and (f) The reasonable and customary charges for physiotherapy treatment. (g) The full cost of Orthotic insoles for employees only. 32 SCHEDULE "C" DEFINED CONTRIBUTION REGISTERED PENSION PLAN FOR BARGAINING UNIT EMPLOYEES OF CROUSE-HINDS/COOPER LIGHTING DIVISION COOPER INDUSTRIES (CANADA) INC. MISSISSAUGA, ONTARIO. Effective date: 2008 Contribution Rate: Effective June 1, 2005, the Company shall contribute for all employees seventy ($0.70) cents per hour worked to the Pension Plan. Contribution Hour: Each hour of active employment beginning on the Effective date for which the employee receives pay from the Company including overtime, vacation and holiday hours, but not including pay for any absence or other periods during which duties are not being performed. Vesting Service: Continuous employment with the Company. All service prior to the effective date counts as vesting service. Vesting Schedules: Less than two (2) years vesting service 0% Two or more years vesting service 100%. Registered Pension Plan: Employee contributions of up to one dollar and fifty cents ($1.50) per hour in ten cent (.10¢) increments. 33 Normal Retirement: Age 65. Participants are entitled to 100% of their account regardless of service. Early Retirement: Age 55 and ten years' vesting service. Late Retirement: Participants who continue to work beyond age 65 will continue to receive contributions and investments earnings to their accounts until the earlier of age 71 or actual retirement. Disability Retirement: Participants become 100% vested in their accounts regardless of service upon becoming totally and permanently disabled. Death Benefits: Upon death, a participant's beneficiary will be entitled to 100% of the account regardless of age or service. 34 LETTER OF UNDERSTANDING BETWEEN CROUSE-HINDS/COOPER LIGHTING DIVISION COOPER INDUSTRIES (CANADA) INC AND THE UNITED STEELWORKERS TEMPORARY TRANSFERS Employees will be temporarily transferred into material handling for a period not to exceed sixty (60) working days. The sixty (60) days does not count in cases of sickness, accident, or authorized leave of absence. The Company agrees to limit the number of temporary transfers to three (3) times per year and up to three (3) people at one time. This letter of understanding shall be renegotiated at the conclusion of the first year of the contract, on or before June 1, 2006. 35 LETTER OF UNDERSTANDING BETWEEN CROUSE-HINDS/COOPER LIGHTING DIVISION COOPER INDUSTRIES (CANADA) INC AND THE UNITED STEELWORKERS During the negotiations for a new Collective Agreement, the parties discussed a "Christmas Shutdown". The Company agreed that the Company will, in good faith, plan to schedule a "Christmas Shutdown" each year. The "Christmas Shutdown" is to run from Christmas Day through New Year's Day. In order to schedule a "Christmas Shutdown" without loss of pay to the employees, available floater holidays are to be used. Additional days that may be needed will be made up as in the past. It is understood that exceptions may have to be made in order to meet customer requirements. The Company will use its best efforts to minimize exceptions. 36 LETTER OF UNDERSTANDING BETWEEN COOPER INDUSTRIES, CROUSE-HINDS DIVISION - AND THE UNITED STEELWORKERS It is agreed and understood that the rate of pay known as the "Christmas Bonus" shall be retained and paid by the Company to those employees currently receiving this rate. This rate is fixed and is in addition to the regular hourly rate of their particular job class and/or any applicable premiums. 37 LETTER OF UNDERSTANDING BETWEEN CROUSE-HINDS/COOPER LIGHTING DIVISION COOPER INDUSTRIES (CANADA) INC AND THE UNITED STEELWORKERS The parties agree, for the term of this agreement, that employees working in the positions of Drilling/Tapping Set-up, Drilling/Tapping Operator, Drilling/Tapping Group Leader, and Fab Shop Set-up shall, at a minimum, be red-circled at their current wage rate and shall receive the annual increases during this agreement. 38 LETTER OF UNDERSTANDING BETWEEN COOPER INDUSTRIES, CROUSE-HINDS DIVISION AND UNITED STEELWORKERS . MULTI-SKILLING ENABLING AGREEMENT The Union and the Company agree to continue with the implementation of a multi-skilling process for the hourly workforce of the Mississauga facility. Both parties agree to maintain a Joint Union/Management Committee made up of equal members, not to exceed six (6) in total. - The Committee will establish written criteria for each skill outlined in the skills model. - The Committee will consult with the supervisors from the affected classification when developing skills criteria. - The Committee may involve a mutually agreeable third party to advise the parties in the development of the skills criteria. Base rates for the purpose of this Agreement shall be those set forth in Schedule 'A' of the current agreement. When “on the job training” is given, where training would apply toward future advancement in another classification, as defined in Schedule 'A' 2, such jobs would be posted for bids. “On the job training” within a classification would not require posting. Subject to business needs, promotions based solely upon natural progression within a classification due to an employee acquiring new qualifications, skills, knowledge and/or ability would not require posting. When/if progression at Level I has reached 10% for assembly and material handling classifications, management reserves the right to suspend further progression pending a change in business requirements. This Enabling Agreement will control to the extent that there is conflict with the 2002 Labour Agreement. 39