UNION PRO SPORTSWEAR INC. (Herein after referred to as the "Employer"}

OF THE FIRST PART

UNITED FOOD AND COMMERCIAL WORKERS UNION LOCAL 175

ARTICLE 1 - PURPOSE

1.01 The general purpose of this Agreement is to secure for the Employer; the Union and the Employees, the benefits of orderly and to the fullest extent possible to provide for the highest possible standard of safety and physical welfare of the employees, economy of operation, quality and quantity of output.

ARTICLE 2 - RECOGNITION

2.01 The Employer recognizes the Union as the sole and exclusive bargaining agent for all employees of the Company, save and except: Foreman, Foreladies, persons above the rank of Forepersons, office staff and sales staff.

2.02 The Employer agrees to employee and retain in his employ none but members in good standing of the United Food and Commercial Workers Union, as herein set out to perform all: Cutting, pressing, operating, printing, shipping and all general work.

2.03 The Union undertakes to supply the Employer with competent help and the Employer agrees to engage those workers directed to him by the Union in response to his request. If the Union is unable to supply the required help, they will inform the Employer at the time the request is made. In such cases the Employer will be at liberty to engage such help from the open market provided the union office is notified within five (5) working day so an employee being hired in this manner. ARTICLE 3 • MANAGEMENT RIGHTS

3.01 The Union agrees that it is the exclusive function of the Employer to :

(a) conduct his business in all respects in accordance with its commitments and responsibilities, including the right to generally manage the work in which it is engaged; locate; extend; curtail or cease to operate; to determine the kinds of machines, tools and equipment to be used; to determine the methods of production; to maintain order; discipline and efficiency.

(b) To make, alter form "time to time, and enforce reasonable rules of conduct and procedure to be observed by the employees.

It is further agreed that these functions shall not be exercised in a manner inconsistent with the expressed provisions of this Agreement.

ARTICLE 4 • UNION SECURITY

4.01 The Employer agrees that all employees in the shall on completion of their probationary period, become and remain members in good standing of the Union as a condition of employment.

ARTICLE 5 - CHECK-OFF OF

5.01 During the lifetime of the Agreement, the Emp.loyer shall deduct from the pay of all employees on the first day of each calendar month, union dues in the amount certified by the Union to the Employer, to be currently in effect and any uniform assessment prescribed by the Union, and shall remit same, prior to the end of such month to the Financial Secretary of. the Union.

5.02 The Employer shall check-off the Union initiation fee from all new employees on the First pay period after completion of the probationary period, which is (60) sixty calendar days from hire date. A letter of authorization to be signed by new employees at the time of hire and a copy of letter to become Appendix "A" of this Contract. ARTICLE 6 ·UNION REPRESENTATION

6.01 The Employer agrees to recognize a Shop Steward as a representative of the Union for those employed in the factory concerned. ·

6.02 It is understood and agreed that the will be admitted to the factory premises during working hours, when on union business, after permission has beeri given by Management.

6.03 The Employer agrees to assign suitable space in the factory for posting of a Union Board.

ARTICLE 7 - DISCRIMINATION

7.01 The Employer and the Union shall not discriminate against any employee with respect to terms and conditions of employment on the grounds of: race, creed, colour, age, sex, marital or parental status, religion, nationality, .ancestry or place of origin, union membership or activity, family relationship, place of residence, political affiliation or activity.

7.02 The Employer and the Union agree no form of sexual harassment shall be condoned in the workplace and it is further agreed that both parties shall work together in recognizing and resolving such problems should they arise. Situations involving sexual harassment shall be treated in the strictest confidentiality by the Employer and the Union.

7.03 Comprehensive policies on No Harassment and Non-discrimination will be developed jointly by the Union and the Management. The approved policies will be circulated to all workers and will be provided to new employees as they join the workplace.

ARl'ICLE 8- NO s·rRIKE-NO LOCKOUT

8.01 During the lifetime of the Agreement, the Union agrees that there will be no strike, stoppage, or or any other or any other act which will interfere with the regular schedule of work and the Employer agrees that there will be no lockout.

ARTICLE 9 - SCHEDULE OF HOURS

9.01 The following sections are intended to define the normal hours of work and shall not be construed as a guarantee of hours per day or per week or of days per week. 9.02 The normal work week shall consist of Forty (40) hours, Monday through Friday, 8:30am to 4:30pm.

9.03 All work done during period other than hereinbefore provided shall be overtime work and shall be paid for, at a rate of time and one half (l lh} the employees base rate plus any bonus earned in the case of pieceworkers.

9.04 All overtime work shall be on a voluntary basis.

9.05 Unless otherwise notified, when a worker reports for work and there is no regular work available, the worker is guaranteed four (4) hours of other work which they must accept at their average rate of pay of four (4) pay, excepting where case of failure to provide work has occurred due to circumstances beyond the reasonable control of the Company.

9.06 Employees shall be granted a ten (1 0} minute rest period each half shift in addition to the regular lunch period.

9.07 All time worked on Sunday shall be paid at double time in accordance with Article 9.03 above.

ARTICLE 10 - SENIORITY

10.01 Seniority is the principle of granting preference to employees in accordance with length of continuous service with the Employer. For the purpose of this Article, seniority shall apply on a departmental basis.

10.02 New employees shall service a probationary period of 60 Calendar days before acquiring seniority rights, which shall then date back to their date of starting with the Company. Probationary may be disciplined or discharged with just cause, which shall exist where in the Employer's decision of discipline or discharge was not discriminatory, arbitrary or in bad faith. ·

10.03 In the slack period when there is not sufficient work for all employees, department seniority shall be the governing factor in layoffs provided the remaining employees have the qualifications to perform the normal requirements of the available work. The employees with the greatest seniority shall be the last to be laid off and conversely the first to be recalled from layoff. For the purpose of this Article a layoff means a layoff of more then five {5) working days. In the event that layoffs are required in the plant, layoff of all probationary employees shall occur first. Shop Chairman. or Stewards shall retain top seniority. 10.04 Seniority once established for an employee shall be forfeited and the employee's employment shall be deemed to be terminated under the following conditions:

(o) if she/he voluntarily quits; . (b) . if she/he is discharged for any cause and not reinstated through the procedure; (c) if she/he fails to report for duty after a layoff or leave of absence in accordance with the provisions of this Agreement; (d) if (12) twelve months have elapsed form the day of layoff; (e) if she/he is absent form work for more than three (3) scheduled working days without no-tifying the employer, in circumstances it was impossible for the employee to give notice to the employer; (f) if an employee is absent form work for ( 18) eighteen months due to illness or accident.

10.05 When recalling an employee after layoff, "they shall be called by telephone, if they can not be reached, they shall be notified by registered mail or telegram and allowed 24 hours to report to work. An employee to whom registered mail or telegram is sent must contact his foreperson within 24 hours of the notice of return to work if he wishes the employer to hold the job open for him for work period. On recall an employee must be willing to preform whatever work management determines as necessary and such employee will be paid at the rate of the job which he is recalled until work is available in his former position. It shall be the employee's responsibility to keep the Employer notified as to their proper address and telephone number.

10.06 An employee shall accumulate seniority under any of the following conditions:

(a) while she/he is at work for the Employer after he has completed his probationary period as set out in 10.02 (b) during any period when he is prevented form performing his work for the Employer by reasons of injury arising out of and in the occurs of his employment for "the Employer and for which he is receiving .compensa-tion under the Workers Compensation Act. (c) during the ·first 12 months of absence due to layoff or written approved leave of absence. (d) during the first 18 months of any absence due to illness or accident. ARTICLE 11 .. STATUTORY HOLlO AY

11.01 To be eligible for payment of Statutory Holidays, a worker must be available for work, the working day prior and the working day after the particul.ar Statutory Holiday.

11.02 It is understood that where an employee has not been available for work on either the working day prior or the working day after the Statutory Holiday due to illness verified by a Doctor's certificate if requested, such employee shall not be denied Statutory Holiday pay.

11.03 New employees must work for the Company for a period of Two (2) months before being eligible for Statutory Holiday pay.

11.04 The Employer agrees to pay for:

New Year's Day Labour Day Good Friday Thanksgiving Day Victoria Day Christmas Day Dominion Day Boxing Day Civic Day

11.05 It is understood and agreed that if work is performed on a Statutory Holiday, the rate of pay shall be time-and-one-half of hourly rage of each hour worked plus payment for the day.

11.06 If a Statutory Holiday falls on Saturday or Sunday then the following Monday shall be considered the Holiday.

ARl'ICLE 12- PAID VACATIONS .

12.01 Each worker will be granted vacation pay amounting to 4% of gross earnings between July 1st and June 30th of each year.

12.02 Workers with seven (7) years service with their Employer as of June 30th are to receive three (3) weeks vacation with pay calculated on the basis of six percent (6%) of gross earnings.

12.03 A 4th week vacation with pay will be granted to employees who have completed ten ( 10) years with their Employer as of June 30th calculated on the basis of eight percent (8%) of gross earnings. 12.04 Workers leaving the employ of the Company are entitled to receive their accumulated vacation pay between July 1st and the time of leaving. in the percent appropriate to their years of service.

ARTICLE 13 - WAGES

13.01 Trainees will start at a rate which is calculated on the basis of ten ( 10) cents per hour above the Provincial minimum as it may be revised.

13.02 Future wages to be open to negotiating by the Union. Where piece-work rates prevaiL as .soon as a worker is able to earn more then hourly rates provide, they will be placed on a piece work basis.

13.03 If the terms provided by this Agreement in respect to wages, hours of work, conditions of employment etc., should become inferior to those provided by the law or regulations of the Province, the law of the Province shall prevail.

13.04 Average hourly rate for pieceworkers wherever it.appears in the Collective Agreement is defined as the actual hours worked on a three (3) month basis divided into gross earnings on the same three {3) month basis.

13.05 At the beginning of each fiscal year the Union and the Management shall meet to discuss wage increases. If the productivity exceeds the proceedings year's leveL wage increases will be given in accordance to department and experience. This article will in no way limit the Company from increasing wages to employees during the year.

13.06 All employees wages shall be increased according to the following Schedule: October 4, 200 J 2.5% October 4, 2002 2.0% October 4, 2003 2.0%

ARTICLE 14 - GRIEVANCE PROCEDURE

14.01 The Employer agrees that the employees shall elect from among themselves at a meeting duly called by the Union, a Shop Chairman. and should the work force increase a Shop Committee may be formed. 14.02 Should an employee have a complaint they will discuss this with the Shop Chairman. who will proceed to take the matter up verbally with the Foreperson. Such complaint shall be brought to the attention of the Foreperson within four (4) working days after the incident giving rise to the complaint. The Foreperson shall state the decision verbally within three (3) working days of receiving the complaint.

STEP 1

Should the employee be dissatisfied with the Foreperson's disposition of the complaint, they may refer such matter of a written grievance form prepared with the assistance of the Union. to their Foreperson. The complaint shall constitute a formal grievance. at Step 1 and shall be filed within five (5) working days of receipt of the verbal reply from the Foreperson. The grievance shall specify the Article or Articles of the Agreement which a violation is alleged. the action of management complained of. indicated the relief sought and be signed by the employee. ·The Foreperson shall reply in writing within five (5) working days of receipt of grievances.

STEP 2

If no settlement is reached at Step 1. the Plant Chairman. a Union Representative and Representative of Management shall meet within five (5) working days or a time mutually agreed upon. to discuss the grievance. If the grievance is not settled within five (5) working days it may be referred to arbitration as herein provided.

· 14.03 The Union or the Employer may initiate a grievance beginning at Step 2 of the grievance procedure. Such grievance shall be filed within ten ( 10} working days of the incident giving rise to the complaint and be in the form prescribed in Step 1. Any such grievance may be referred to arbitration under Article 7 by either the Union in the case of a Union grievance or the Employer in the case of an employer grievance.

14.04 The Union may not institute a grievance directly effecting an employee. which such employee or employees could themselves institute and the Grievance Procedure shall not thereby be by-passed. 14.05 Any complaint or grievance which is not commenced o.r processed through the next stage of the Grievance or Arbitration Procedure within the time specified shall be deemed to have been dropped. However, time limited specified ·in the grievance procedure may be extended by mutual agreement in writing between the Employer and the Union. Section 48 of the Labour Relations Act shall have no application to the time limits provided for in the Grievance and Arbitration Procedure specified in te Agreement.

ARl'ICLE 15 - DISCHARGE AND SUSPENSION CASES

15.01 An employee which is discharged or suspended formore then three (3) working days may file a grievance at Step 2 of the Grievance Procedure within thirty (30) working days or less shall take up their grievances at Step 1. The employee may request Union representation at the time of suspension or discharged and such request shall not be unreasonably withheld.

15.02 No employee shall be discipline or discharged without good and sufficient cause. The Union will be advised of the disciplinary measures immediately and the reason for the discipline or discharge. The Union will be given an opportunity to make representation wither to the Employer or through the Grievance Procedure.

ARTICLE 16 - ARBITRATION

16.01 Whenever either party to this agreement submits a grievance to arbitration, written notice shall be given to the other Party stating the subject of the grievance at the same time nominating an Arbitrator within five (5) workin'g days, after receipt or such notice, the other Party shall name and Arbitrator. Arbitrators representing the two Parties should meet immediately to select a Chairman, mutually agreeable to both Parnes. Should they fail to agree to a Chairman, they shall ask the Minister of Labour for the Province of Ontario to name a Chairman. By mutual consent of the Parties, a sole Arbitrator can be agreed to , who will then have all the rights of the Arbitration Board under these Articles.

16.02 As soon as the Arbitration Board has been completed by the selection of a Chairman it shall meet and hear the evidence and representation of both Parties, and shall render a decision as soon as possible, the intention being that all decisions shall be given within seven (7) days after the Arbitration proceedings have commenced. 16.03 No person shall be selected as a Nominee to an Arbitration Board, who has been directly involved in an attempt to settle the dispute, or the involved in said dispute.

16.04 No grievances shall be considered by the Arbitration Board unless it has · been properly carried through all previous steps of the Grievance Procedure.

ARTICLE 17 - DECISION OF THE BOARD

17.01 The majority decision of such Arbitration Board shall be final and binding upon both parties to the Agreement but if there is no majority, then the decision of the Chairman shall govern.

ARTICLE 18- LIMITATIONS UPON AUTHORITY OF THE BOARD OF ARBITRATION

18.01 The Arbitration Board shall not have jurisdiction to alter or change any of the provisions of the Agreement or to substitute any new provisions in lieu thereof, nor to give any decision inconsistent with the terms and provisions of the Agreement, or to deal with any matter not expressly covered by the Agreement.

ARTICLE 19 - EXPENSES

19.01 Each of the Parties hereto will bear the expense of the Arbitrator appointed by it, and the Parties will jointly bear the expense of the Chairman of the Arbitration Board, if any, except in cases of default of payment of dues and assessments of more then two (2) months in arrears. The defaulting Company will pay full costs of Arbitration unless extenuating circumstances exists.

ARTICLE 20- WARNING LETTERS

20.01 Warning letters shall be given to employees in Three (3} steps as follows:

1st verbal warning by Supervisor. 2"d written warning given with Shop Steward present. 3rd written warning given with Union person present. This warning will carry a Three (3) day suspension.

20.02 Warning letters shall be removed from an employee's file after one (1) year if the employee has not given reason for further discipline. ARTICLE 21 ·LEAVE OF ABSENCES

21.01 The Employer may grant a leave of absence up to Three (3) months without pay, to employees for legitimate personal reasons. The employee must renew such leave of absence at the end of each such period. Leave of absence shall not be granted to an employee for the purpose of working elsewhere.

21.02 Any leave of absence granted by the Employer shall be in writing and shall set out the length of leave of absence granted, the purpose of the leave and the terms, if any on which it is granted.

21.03 Employees shall be granted leave of absence for Union business fora period of up to one (1) year, without loss of seniority and without cost to the Employer, for the purpose of service as a full-time employee of the Union.

21.04 (d) Employees will be entitled to pregnancy and parental leave in accordance with the Ontario Employment Standards Act.

21.04 (b) An employee who is pregnant and who has been employed by the Employer for a period of at least thirteen (13) weeks before the expected birth date shall be entitled, upon application thereof, to a leave of absence in accordance with the Ontario Employment Standards Act.

(c) Employees shall give the Employer two (2) weeks notice in writing of the date upon which she intends to commence her leave of absence and furnish her Employer with a certificate from a legally qualified doctor stating that she is pregnant and giving the estimated date of delivery.

(d) The Employee shall provide the Employer with two (2) weeks written notice of her intention to return to work. Upon her return to work the Employer shall reinstate the employee to the job she performed prior to her leave of absence or provide her with alternate work of a comparable nature at not less than her wage at the time of leave of absence and without loss of seniority.

ARTICLE 22 • BEREAVEMENT LEAVE

22.01 Provide for bereavement leave of three (3) days with pay at the employee's average hourly rage, in the event of a death in an employee's immediate family. Where due to distance, the employee is unable to attend the funeraL he/she shall be provided a two (2) day memorial leave of absence with pay the employee's hourly rate. Immediate family defined as an employee's Mother, Father, Spouse, Common-Law Spouse, Daughters, Sons, Brothers and Sisters. Employees. shall be granted two (2) days leave of absence with pay for an employee's Mother and Father in-law. Bereavement pay will be given to employees working full time at the time of bereavement, or if part time pay will be pro-rat~d. Employees may be required to produce proof of death satisfactory to the Employer.

ARTICLE 23 - HEALTH AND SAFETY

23.01 The Employer agrees to maintain proper safety &health conditions in all · departments covered by this Agreement.

23.03 It is mutually agreed that a joint Health & Safety Committee shall be established, 1 from Management and 1 from the Union, for the duration of this Agreement, the Shop Steward will represent the Union.

23.03 It will be the responsibility of the Committee to ensure the standards of the Occupational Health & Safety Act is upheld. The Committee will investigate all accidents and will work toward the elimination of safety hazards.

23.04 The Union Committee Person will accompany any Government Health & Safety Inspectors when they come into the plant. Any report the Inspector makes relative to his inspection must go to the .Union Committee Person as well as the Management. ·

23.05 The Committee shall and the Employer agrees to co-operate in doing everything possible for providing modified work or modified work stations for the purpose of re-employment of injured workers returned from WCB. injuries.

ARl'ICLE 24 - HEALTH AND WELFARE

24.01 In addition to the wages regularly to be paid by the Employer to the employee as provided in this Agreement, the Employer shall contribute to the United Food and Commercial Workers Union, Local 175 Health and Welfare Plan, a sum equal to one hundred and twenty-five ( 125.00) dollars per month for each employee in service covered by this Agreement, who is on the payroll for service rendered during any regular payroll period, provided that such employee has been employed a minimum of twenty (20) hours per week and has been in the employ of the Employer for a period of thirty (30) days.

24.02 Such contribution shall be paid monthly and shall be used solely for the purpose of provided health, welfare and death benefits and such other benefits as may afforded to eligible employees in accordance with this Agreement.

24.03 Payments are to be made by the Employer to the United Food and Commercial Workers Union, Local175 Health & Welfare Fund by the lOth day of each month. The Employer will complete forms to be furnished by the United Food and Commercial Workers Union, Local 175 Health & Welfare Fund for reporting of "Welfare Contributions" to be forwarded to the United Food and Commercial Workers Union, Local 175 Health and Welfare Fund.

24.04 All such monies due to the United Food and Commercial Workers Union Health and Welfare Fund from the Employer herein under the provisions of this Agreement shall be segregated each week by the Employer until monthly remittance is made to the United Food and Commercial Union, Local 175 Health & Welfare Fund, and shall not be commingled with the funds of the Employer, but shall be held in trust for the benefit of the United Food and Commercial Workers Union, Local175 Health & Welfare Fund.

24.05 (a) In the event an Employer fails to remit any remit any contributions or deductions in the Health & Welfare Plan, Pension Plan or Union Dues, the Employer shall be required to pay to the appropriate plan or dues as liquidated damages and not as a penalty an amount equal to two percent (2%) per month compounded monthly for any delinquent contributions, deductions or dues fifteen (15) days in arrears calculated from the date due, provided the Employer has received five (5) days prior written notice to correct such delinquencies and has not done so.

(b) Where the Union has taken prior proceedings and obtained a decision against an Employer for delinquent contributes or dues, the Union may require such Employer to post a cash bond or a certified cheque in an amount calculated to be twice the average monthly total payments by the Employer to the Union in the Proceeding twelve ( 12) months. In the event such Employer such Employer again becomes delinquent for such contributions or dues the portion thereof, to satisfaction of the delinquency and require the ..

Employer to replenish the cash bond or certified cheque.

24.06 The Employer agrees to pay Retail Sales Tax on Employer contributions to the United Food and Commercial Workers Union, Local 175 Health & Welfare Fund which is required by legislation.

24.07 If the Employer requires an employee to provide a doctor's certificate, the Employer agrees to reimburse the employee for any reasonable costs paid by the employee to doctor for obtaining the certificate.

ARTICLE 25 - TERM OF AGREEMENT

25.01 This Agreement shall remain if full force and effect for a period of three (3) years from October 4, 200 l, to October 3, 2004, and from year to year thereafter unless notice of intent to terminate or amend the Agreement is given by either Party, ninety (90) days before the termination of said Agreement.

25.02 During negotiations for the renewal of the Agreement or negotiations for a new Agreement the present Agreement shall remain in full force and effect. ..

IN WITNESS THEREOF the Party of the First Part has executed by it's duly appointed officers and the Party of the Second Part by the hand of it's representative. #:" DATED AT TORONTO ~HIS

UNION PRO SPORTSWEAR INC. UNITED FOOD AND COMMERCIAL WORKERS UNION LOCAL NO. 175

/ ;#~!~ v I I • ... LABEL AGREEMENT

This Agreement entered into by and between UNION PRO SPORTSWEAR INC. (hereinafter referred to as "Employer") and the National Apparel, Garment and Textile Workers Council of United Food and Commercial Workers International Union thereinafter referred to as "Council as follows:

WITNESSETH:

That in considerations of the use of the Label of the Council, the Employer agrees to abide by the rules and conditions governing the use of such Trade Union Label as prescribed by the Council ad as set forth in this Label Agreement.

1. The ·Employer shall affix the Trade Union Label on all garments manufactured by its employees who are employed under the terms of a collective bargaining agreement between the Employer and a Local Union of the United Food and Commercial Workers International Union.

2. The Employer agrees to pay for the use of the Trade Union Label at the rate of Six ($6.00) dollars per thousand (1 000) Labels, with the understanding that this price is subject to change upon notice in the Employer by the Council. Such payments for use of the Trade Union Label shall be made to the Local Label Secretary by check made payable to the order of Dave Johnson President of National Apparel, Garment and Textile Workers Council, until further notice.

3. The Employer agrees that it will not issue any of the Trade Union Label · supplied to it by the Council after it is notified that the privileged to use such Trade Union Labels has been withdrawn.

4. The Trade Union Label of the Council shall be managed and handled in each of the Employer's factories or shops by an individual designed by the Council who is employed in the Employer's plant, factory or shop under the collective bargaining agreement between a Local Union of the United Food and Commercial Workers International Union and the Employer. The Trade Union Label shall at all times be considered the · property of the Council. The Employer agrees to return all labels on hand to the Council immediately upon notification to it that its privilege to use the said Trade Union Label has been withdrawn. .. .. • • 5. The Council and its affiliated Local Union agree to do all within their power as labour organizations to advertise the goods and garments bearing the Trade Union Label, and to otherwise benefit the business of the Employer - to the .extent that such business consists of the manufacture, processing and sale of goods and garments bearing the said Trade Union Label.

6. The Employer agrees to abide by the conditions specified in this Label Agreement. The Council specifically reserves the right to withdraw from the Employer the use of .the Trade Union Label at any time and for any reason.

7. Should any difference arise between the Employer and the Council concerning the use of the Trade Union Label, which difference cannot be settled between them, such difference or differences shall be submitted to an Impartial Umpire to be mutually selected by the parties. If the parties ·are unable to agree upon such impartial third party, either party may request the American Arbitration Association to designate an arbitrator in accordance with its rules and procedures.

8. This Agreement shall be applicable to all of those plants where the Council and/or one ofits affiliates Local Unions has a current and applicable collective bargaining agreement with the Employer. This Agreement shall be in full and effect on the 3rd day of October 1998 and shall continue in force and effect for annual periods thereafter, unless either party gives sixty (60} days written notice to the other of an intention to terminate the Agreement as of its expiration or anniversary date.

9. This Agreement supersedes all prior Label Agreements between the Employer and the United Food and Commercial Workers International Union and any of its predecessor International Unions.

UNITED FOOD AND COMMERCIAL WORKERS UNION, LOCAL 175:

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