collective agreement between molson canada …molson agreement moa 05/21/08 4 this agreement made...

COLLECTIVE AGREEMENT between

Molson Canada and

International Union of Operating Engineers, Local 882

Term of Agreement: April 21, 2008 to April 20, 2013

Molson Agreement MOA 05/21/08

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TABLE OF CONTENTS ARTICLE 1 PREAMBLE ...........................................................................................................4 ARTICLE 2 PERIOD OF AGREEMENT ................................................................................4 ARTICLE 3 TRADE UNION MEMBERSHIP ........................................................................5 ARTICLE 4 JURISDICTION ....................................................................................................5 ARTICLE 5 REGULAR HOURS AND WAGES .....................................................................5

5.1 Hours ...........................................................................................................5 5.2 Breaks..........................................................................................................5 5.3 Pay Days ......................................................................................................6 5.4 Minor Maintenance ...................................................................................6 5.5 Wages ..........................................................................................................6 5.6 Posting Shift Schedule ...............................................................................6 5.7 Acting Chief ................................................................................................6 5.8 Cost of Living Allowance...........................................................................6 5.9 Pay for Skill Premium ...............................................................................7 5.10 Methods of Operation ................................................................................7 5.11 New Jobs .....................................................................................................7

ARTICLE 6 OVERTIME & PREMIUM RATES ....................................................................7

6.1 Shift Premium ............................................................................................7 6.2 Overtime .....................................................................................................8 6.10 Emergency Call Back Pay .........................................................................8 6.15 Overtime Meal Allowances .......................................................................9 6.16 Dirty Money ................................................................................................9

ARTICLE 7 STATUTORY HOLIDAYS ................................................................................10 ARTICLE 8 VACATIONS........................................................................................................10 ARTICLE 9 VACATION BONUS ...........................................................................................12 ARTICLE 10 WELFARE PLANS .............................................................................................12


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ARTICLE 11 GENERAL ............................................................................................................12 11.1 Meetings ....................................................................................................12 11.2 Uniforms and Protective Clothing ..........................................................12 11.3 Safety Footwear ........................................................................................13 11.4 Safety Prescription Glasses .....................................................................13 11.5 Tool Allowance .........................................................................................13 11.6 Jury Duty ..................................................................................................13 11.7 Bereavement Leave ..................................................................................14 11.8 Duplication of Benefits ............................................................................14

ARTICLE 12 JOB POSTINGS...................................................................................................14 ARTICLE 13 TERMINATION OF SERVICE .........................................................................15

13.2 Separation Pay .........................................................................................15 ARTICLE 14 ADJUSTMENT OF COMPLAINTS .................................................................16 IN WITNESS WHEREOF ..........................................................................................................18 SCHEDULE "A" .........................................................................................................................19

BENEFIT PLAN ..............................................................................................................19 SECTION 1 EFFECTIVE DATE.................................................................................19 SECTION 2 ELIGIBILITY ..........................................................................................19 SECTION 3 BENEFITS ................................................................................................19

3.1 Life Insurance...............................................................................19 3.1.1 Dependent Life .............................................................................19 3.2 Accidental Death and Dismemberment .....................................20 3.3 Hospital Coverage ........................................................................20 3.4 Medical Coverage .........................................................................20 3.5 Extended Health Benefit Coverage ............................................20 3.6 Dental Coverage ...........................................................................20 3.7 Vision Care ...................................................................................21 3.8 Disability Income Plan .................................................................21

SECTION 4 EMPLOYEE CONTRIBUTIONS ..........................................................25 SECTION 5 CANCELLATION OF BENEFITS........................................................25 SECTION 6 WELFARE BENEFITS FOR PENSIONERS ......................................26

SCHEDULE "B" .........................................................................................................................27

SUMMARY OF THE DEFINED BENEFIT PENSION PLAN ..................................27 SECTION 1 HISTORY AND EFFECTIVE DATES .................................................27 SECTION 2 ELIGIBILITY ..........................................................................................27 SECTION 3 CONTRIBUTIONS..................................................................................27 SECTION 4 CREDITED SERVICE ............................................................................27 SECTION 5 NORMAL RETIREMENT .....................................................................27


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SECTION 6 EARLY RETIREMENT .........................................................................28 SECTION 7 SPECIAL EARLY RETIREMENT .......................................................28 SECTION 8 DISABILITY RETIREMENT ................................................................28 SECTION 9 PENSION BENEFITS .............................................................................29 SECTION 10 DEATH BENEFITS ................................................................................30 SECTION 11 BENEFITS ON TERMINATION OF EMPLOYMENT .....................30 SECTION 12 DEFERRED RETIREMENT .................................................................31

SCHEDULE "C" .........................................................................................................................32

DC PENSION PLAN .......................................................................................................32 LETTER OF UNDERSTANDING #1 .......................................................................................33

RE: DC PENSION PLAN ...............................................................................33 LETTER OF UNDERSTANDING #2 .......................................................................................34

RE: DC PENSION PLAN ...............................................................................34 LETTER OF UNDERSTANDING #3 .......................................................................................35

RE: SOFT QUALITY CONTROL ................................................................35


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THIS AGREEMENT made and entered into this 21st day of May, 2008 BETWEEN: MOLSON CANADA

of the City of Vancouver, in the Province of British Columbia, hereinafter called the "Company"

PARTY OF THE FIRST PART AND: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 882

of the Municipality of Burnaby, in the Province of British Columbia, hereinafter called the "Engineers' Local"

PARTY OF THE SECOND PART ARTICLE 1 PREAMBLE 1.1 This Agreement entered into on the 21st day of May 2008 for the purpose of promoting

harmony and co-operation between the Company and the members of the Engineers' Local as represented by these contracting Parties.

The Engineers' Local pledges itself to promote the mutual interest of the parties to this Agreement and to continue the present amicable relations. To advertise the standing of the Company through the usual channels as a Union Concern, and to use the Organization’s good offices on behalf of the Company in every honorable manner.

ARTICLE 2 PERIOD OF AGREEMENT 2.1 This Agreement is to be from April 21, 2008 to April 20, 2013 but will continue from

year to year thereafter by mutual consent.

Should either party wish to change, add, or amend this Agreement, written notice shall be given to the other party within four (4) months prior to the expiration of this contract with the proposed changes, additions or amendments attached.

Sub-Section 2 of Section 56 of the Labour Relations Code of British Columbia is hereby specifically excluded.


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ARTICLE 3 TRADE UNION MEMBERSHIP 3.1 The Company agrees to employ only Engineers supplied by the Engineers' Local, and the

Engineers' Local agrees to furnish competent Engineers to perform the duties as Engineers as required by the Chief Engineer of the Company, who shall hire and discharge all his help.

ARTICLE 4 JURISDICTION 4.1 The Chief Engineer shall at all times have full charge of the operation and maintenance

of the power and refrigeration equipment at the Company's operations and all future installations within those areas. If alternate supervisory arrangements are made for specific work in the craft's jurisdiction which does not conflict with the requirements of the Power Engineers Boiler and Pressure Vessel Safety Act, Regulations, and amendments thereto, the Company will communicate those arrangements to the employees concerned through the Chief Engineer or designate.

The work by the Engineers of Local 882 shall consist of all work heretofore regularly performed by them in the operation and maintenance of power and refrigeration at the Company's operation. And all such other operations from time to time as coming within the craft's jurisdiction as described in the certification of bargaining authority issued and varied by the B.C. Department of Labour.

ARTICLE 5 REGULAR HOURS AND WAGES 5.1 Hours

Regular working hours shall not exceed twelve (12) consecutive hours in one day or thirty-six (36) hours in one week inclusive of meal periods, unless otherwise stated within this contract.

5.2 Breaks

Engineers shall be entitled to a thirty (30) minute and a fifteen (15) minute lunch break in addition to two (2) fifteen minute coffee breaks during a twelve (12) hour shift. Shift Engineers shall be paid a premium at straight time when required to work through either lunch break.


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5.3 Pay Days

Wages shall be paid weekly by automatic bank deposit not later than Friday afternoon of the following week. Where a statutory holiday is observed during the week, wages shall be paid not later than the Monday of the week after the following week.

5.4 Minor Maintenance

It is agreed that Shift Engineers perform minor maintenance (i.e., painting, housekeeping, minor P.M. work, etc.) during the course of their shift.

5.5 Wages

Wages April 21/ 08 April 21/ 09 April 21/ 2010 April 21/ 2011 April 21/ 2012 3rd Class Shift Engineer

$36.90

$38.30 $39.45 $40.60 $41.70

Maintenance Engineer

$36.90 $38.30 $39.45 $40.60 $41.70

3rd Class Engineer

$36.90 $38.30 $39.45 $40.60 $41.70

5.6 Posting Shift Schedule

Engineers will work rotating 12-hour shifts which will be posted two (2) weeks prior to shift start so they will know well in advance of their duty days and days off.

5.7 Acting Chief

In the absence of the Chief Engineer for reasons of vacation, illness, or business, the Employee appointed as Acting Chief Engineer shall receive a wage differential of 10% of his regular rate for all hours so worked.


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5.8 Cost of Living Allowance

The employee shall be eligible for a cost of living wage adjustment on the following conditions:

(a) If the Statistics Canada – Consumer Price Index (CPI) increases more than eight percent (8%) per annum over any twelve (12) consecutive months starting at the base date and ending no later than the expiry date of the agreement, April 21, 2013.

(b) The base date shall be the first of the month following ratification of

2008 – 2013 agreement. (c) The wage increases shall be $0.01 for each 0.4% increase over the CPI

increase plus eight percent (8%). All fractions of $0.005 or more shall be rounded up.

(d) Example: CPI on base date is one-hundred fifty (150), after twelve

(12) months the CPI is one-hundred sixty-five (165). Base rate increase is fifteen (15). Amount of wage increase will be (15 divided by 150) X 100 = 10%. 10% - 8% = 2%. 2% divided by 0.4 = 5. 5 X 0.01 = $0.05 per hour.

(e) In the event that the eight percent (8%) trigger has been reached the

initial cost of living adjustment shall be made the first of the following month and quarterly thereafter.

(f) It should be noted that the CPI effective June 1st is the index

published by Statistics Canada on or about July 15th and so on in that manner.

5.9 Pay for Skill Premium

Employees engaged as certified engineers will receive a “Pay For Skills Premium” for all hours worked after obtaining the additional trade qualifications for any of the following combinations. Trade qualifications will be defined as the applicable ticket issued by the Skills Development Office of the British Columbia Ministry of Skills, Training and Labour.


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Note: It was agreed that all hours worked including those as shift engineer are to be paid at the premium rate.

(A) Instrumentation Mechanic & Engineer 3rd Class $2.30/hour (B) Refrigeration Mechanic & Engineer 3rd Class $2.30/hour (C) Millwright & Engineer 3rd Class $2.30/hour (D) Pipefitter & Engineer 3rd Class $2.30/hour (E) Plumber & Engineer 3rd Class $2.30/hour 5.10 Methods of Operation

The Company and the Union recognize that changes in methods of operation and manufacturing that directly effect the employees must be discussed between the parties in order to best initiate those changes. In any event, the Company will supply adequate manpower for all operations.

5.11 New Jobs

In the event that new jobs are created as deemed necessary or advisable by the Company, a classification and a rate for such job will be established as agreed upon by the Union and the Company. If agreement cannot be reached, after a trial period of 60 days, the parties will again meet to discuss the classification and job rate. If there is no agreement, the parties will resolve the issue through the grievance procedure.

ARTICLE 6 OVERTIME & PREMIUM RATES 6.1 Shift Premium and Sunday Premium

For work performed between the hours of 7:00 p.m. to 7:00 a.m., a premium of $1.25 per hour shall be paid. Shift Engineers who work Sunday will be paid at the premium rate of two times (2X) the regular rate. Hours worked in excess of twelve (12) per day on Sunday shall be paid at the rate of three times (3X) the regular rate.

6.2 Overtime

Hours worked in excess of the posted schedule (based on thirty-six (36) hour week) by Shift Engineers shall be paid at two times (2X) the regular rate.

6.3 Hours worked by Maintenance Engineers in excess of thirty-six (36) hours in one (1)

week shall be paid at two times (2X) the regular rate.


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6.4 Hours worked in excess of twelve (12) per day, Monday to Friday for Maintenance Engineers and Monday to Saturday for Shift Engineers, shall be paid at the rate of two times (2X) the regular rate.

6.5 Shift Engineers scheduled time off on weekends will be covered with overtime at the

applicable overtime rate. It will be offered to available personal and if not filled, will be covered by one (1) of the engineers in any case.

6.6 The regular work week for Maintenance Engineers will be three (3) consecutive twelve

(12) hour shifts falling between Monday to Friday. 6.7 All hours worked on scheduled days off will be considered as overtime or premium hours

of the day and week worked and the applicable overtime or premium rates will be paid. 6.8 All hours worked on scheduled days off will be considered as overtime hours of the

day and week worked and the applicable overtime rates will be paid. 6.9 Emergency Call Back Pay

An employee who is

(a) called back to work after the completion of his regular shift, or (b) asked to report to work on his scheduled days off, or

(c) sent home early from his regularly-scheduled shift in order to cover/work a different shift shall be paid a minimum for four (4) hours pay at the prevailing overtime rate for all such hours worked.

6.10 If an Engineer does not receive forty-eight (48) hours notice of shift change, he shall be

paid overtime for the first of the rescheduled shift at the prevailing overtime rate. 6.11 If an Engineer is required to change shifts and the schedule does not grant him twelve

(12) hours off between shifts, he shall be paid overtime at the prevailing rate for such hours that fall within the twelve hour period.

6.12 A change of shift will be defined as any change to an employee’s posted schedule in

hours worked, shift start or end times exceeding 1.5 hours, or number of days worked. 6.13 Employees shall be given the option to be paid their overtime at double time (2X) or

straight time for all hours worked with “Paid Time Off” equal to all hours worked added to their “Banked Time.”


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6.14 Overtime Meal Allowances

The Company agrees to notify the employees the previous day when overtime is needed. In the event of an emergency and overtime is to be worked without notice being given the previous day and the period of overtime is to be more than two (2) hours in duration, then the Company agrees to provide lunch for all Engineers working such overtime up to a maximum of fifteen dollars ($15.00).

6.15 Dirty Money

A one dollar ($1.00) per hour differential “Dirty Money” over base rate for time actually spent inside a boiler performing boiler cleaning and scaling work or the performance of such work outside the boiler proper.

In addition, the one dollar ($1.00) per hour differential shall apply to work performed on the inside of the door and door seals of the boiler after the boiler has been opened. Such differential shall not be applicable to any other work in the area of a boiler which has been shut down for cleaning purposes.

“Dirty Money” at the same rate will be paid for employees required to work on broken process sewer lines, Oberlin Filters, DE Filters, Drum Screen and Presses, and Brine Systems.

ARTICLE 7 STATUTORY HOLIDAYS 7.1 The following Statutory Holidays, or the days proclaimed by the province for their

observance with respect to 7.3 below, will be paid for when not worked provided that the employee is not absent because of layoff, sickness or accident, or leave of absence.

New Year's Day Good Friday Easter Monday Victoria Day Canada Day BC Day Labour Day Thanksgiving Day Remembrance Day Christmas Day Boxing Day

If the Federal or Provincial Government declares a Statutory Holiday in addition to those listed above, the employees will be entitled to that day under the same conditions as outlined in this article.

7.2 Statutory Holidays will be celebrated on the calendar day, for Shift Engineers working

regular shifts, and will be paid at two times (2X) the regular rate, or at straight time for all hours worked with “Paid Time Off” equal to all hours worked, in addition to seven point two (7.2) hours pay for the holiday. The proclaimed day will be paid at the regular rate if worked.


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7.3 Maintenance Engineers shall receive the holiday in (7.01) above on the day proclaimed by the province. Holidays that fall on a Saturday will be observed on the preceding Friday or the day proclaimed, and any of the above holidays that fall on Sunday will be observed on the following Monday or the day proclaimed. Maintenance Engineers required to work on such proclaimed or observed days will be paid at double time (2X) the regular rate, or at straight time for all hours worked with “Paid Time Off” equal to all hours worked, in addition to seven point two (7.2) hours pay for the holiday.

7.4 All Statutory Holidays taken as “Paid Time Off” will be kept in a bank to be taken at a

mutually agreed upon time but in any event, must be taken within twelve (12) months. If for any reason, the time cannot be mutually agreed upon, it will be paid at double (2X) time.

7.5 Those engineers on days off will have seven point two (7.2) hours of Statutory Holiday

Time banked. 7.6 All hours worked during the regular work week on any of the named Statutory

Holidays shall be paid at two times (2X) the regular rate in addition to seven point two (7.2) hours Holiday Pay. All hours worked on any of the named Statutory Holidays in excess of the regular work week shall be paid at three times (3X) the regular rate.

ARTICLE 8 VACATIONS 8.1 Engineers of the Engineer's Local shall, after being in the employ of the Company for

one (1) year, be entitled to two (2) weeks vacation in each and every year, and the part time employed Engineer to one (1) week's vacation with full pay.

8.2 Upon the completion of three (3) years of continuous employment with the Company,

Engineers will receive three (3) weeks vacation with pay, and for each successive year of employment until he has completed eight (8) years of service.

8.3 Upon completing eight (8) years of continuous employment, the Engineers will receive

four (4) weeks vacation with pay, and for each successive year of employment until he has completed fifteen (15) years of continuous employment.

8.4 A vacation period of five (5) weeks with pay will be granted to Engineers upon the

completion of fifteen (15) years of continuous employment until he has completed twenty (20) years of continuous employment.

8.5 A vacation of six (6) weeks with pay will be granted to Engineers upon the completion of

twenty (20) years of continuous employment until he has completed twenty-five (25) years of continuous employment.


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8.6 A vacation of seven (7) weeks with pay will be granted to Engineers upon the completion

of twenty-five (25) years of continuous employment and for each succeeding year thereafter.

8.7 To compute, the three (3), eight (8), fifteen (15), twenty (20), and twenty-five (25) years

of service mentioned respectively, for the purpose of qualifying for the third, fourth, fifth, sixth, and seventh weeks of vacation, such service shall be considered to have commenced on January 1st of the year in which the employee commenced employment.

8.8 Employees shall take their vacation in the calendar year in which they become eligible

for same. 8.9 In the event an employee becomes ill or injured in excess of three (3) days after having

commenced his vacation, such that he qualified for Weekly Indemnity coverage, he may request, as outlined below, to postpone his remaining days of vacation in order to enroll in the Weekly Indemnity Plan.

(A) The employee shall advise his supervisor of his illness.

(B) All approved requests will result in the employee's remaining days of vacation

being canceled, as prescribed above, the day after the request is received. The remaining vacation time shall be re-scheduled at a time mutually agreeable to the Company and the employee.

(C) Any vacation pay held by the employee for the canceled period shall be returned

to the Company and re-issued for the rescheduled vacation period. ARTICLE 9 VACATION BONUS 9.1 Each January 1st, employees with 3 or more years of continuous employment shall

receive a vacation bonus either in cash or time off equaling of 20% of the employee's normal vacation entitlement.

9.2 The Vacation Bonus will be paid when requested by the employee anytime within the

calendar year. If the vacation bonus is not used by year-end it will automatically be paid out.


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ARTICLE 10 WELFARE PLANS 10.1 Schedule "A" of this Agreement is a summary of the Company's Insurance Benefit Plan.

It is understood and agreed that the Company is not an insurer and the benefits set out in Schedule "A" shall be governed by the contract with the insurer.

10.2 Schedule "B" of this Agreement is a summary of the main provisions of the Defined

Benefit Pension Plan as amended to January 1, 1984. It is understood and agreed that the benefits shall be governed by the full text of the Pension Plan, which is available to the Employees and the Union.

10.3 Schedule “C” of this Agreement - Contribution Pension Plan as amended April 21, 2000

(terms and conditions described within the Company “Intranet”). ARTICLE 11 GENERAL 11.1 Meetings

Employees shall not lose any regular pay for attending meetings approved by the Company and held between the parties on Company premises such as safety, grievance, negotiating meetings, or for any other activity approved by the Company. It is further agreed that no Union official or Shop Steward shall leave his work without obtaining permission from his superior.

11.2 Uniforms and Protective Clothing

The Company shall supply and maintain uniforms and protective clothing as required in line with past practice, except safety shoes and prescription glasses, at no cost to the employee.

11.3 Safety Footwear

The Company will reimburse permanent employees up to a maximum of $200.00 per year to be paid out at the beginning of the year. Non benefit personnel will be eligible for a fifty (50) dollar footwear allowance per year.


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11.4 Safety Prescription Glasses

Upon the presentation of a receipt for the purchase of prescription glasses, with CSA and BC Association of Optometrists approved lenses and frames, the Company will reimburse the employee up to a maximum of $350.00 for every twenty-four (24) month benefit period.

11.5 Tool Allowance

The Company agrees to pay out at the beginning of each year the following amounts:

Effective April 21, 2009, tool allowance increases to $450.00 per calendar year.

Effective April 21, 2010, a tool allowance of $450.00 per calendar year. Effective April 21, 2011, a tool allowance of $450.00 per calendar year.

Effective April 21, 2012, tool allowance increases to $500.00 per calendar year. Effective April 21, 2013, a tool allowance of $500.00 per calendar year.

11.6 Jury Duty

When an employee is required to serve on a regular or coroner's jury of "Subpoenaed as a Crown Witness" during his normal working hours, he shall be granted leave-of-absence and shall receive the difference between his straight time rate of pay (for hours necessarily absent and during which he would otherwise have been working) and the amount received for each jury duty.

An employee required to report for jury duty, after giving the Company reasonable notice, will be transferred to the day shift, 7:00 a.m. to 7:00 p.m., and shall be excused from reporting to work. If the employee is not selected, he will return to complete his shift.


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11.7 Bereavement Leave

When an employee attends the funeral of an immediate relative, he shall receive leave of absence to a maximum of 36 hours (3 shifts). Where 36 hours (3 shifts) is not practical due to travel time, an employee may request up to an additional 12 hours (1 shift) to a maximum of 48 hours (4 shifts). He shall receive seven point two (7.2) hours straight time rate of pay for each such days absent on which he would otherwise have been working. For the purposes of this Section "immediate relative" shall mean one of the following: Wife, Husband, Common Law Spouse, Daughter, Son, Mother, Father, Sister, Brother, Mother-in-law, Father-in-law, Son-in-law, Daughter-in-law, Grandmother, Grandfather, Grandmother-in-law, Grandfather-in-law , and Grandchild.

11.8 Duplication of Benefits

An employee shall not receive wages or allowances such as holiday pay, vacation pay, weekly indemnity, long-term disability, Workers’ Compensation or other similar benefits so that the employee’s net pay for any day or part day exceeds his/her normal net pay for such period from more than one source.

ARTICLE 12 JOB POSTINGS 12.1 All regular employee job vacancies and newly created positions must be posted in a

conspicuous place for all Engineers and Maintenance staff to see, two (2) calendar weeks prior to accepting applicants from the Union. All regular full time engineers are entitled to apply. The Company may fill such vacancies on a temporary basis until applications have been processed and a regular appointment is made. A ninety (90) calendar day probationary period from start date will be served by new regular status employees; upon completion they will be deemed full-time regular status employees.

12.2 In the case of vacancies, the senior applicant who has the required certification,

qualifications, skills and/or experience shall be selected. 12.3 Seniority for all regular employees shall be determined as the date the employee

commenced with the Company on a continuing basis. Seniority shall be the deciding factor where a layoff may occur with the least senior employee the first to be laid off. The Company shall comply with Section 5 of the Employment Standards Act regarding notice of layoff.


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12.4 Seniority shall be lost and employment terminated if an employee: (A) Voluntarily leaves the employ of the Company. (B) Is discharged for cause; or (C) After a layoff, fails to report for work for five (5) working days after being

recalled by telephone and the Company having sent a letter to the Union. ARTICLE 13 TERMINATION OF SERVICE 13.1 The Company agrees that when desirous to terminate the service of an Engineer of the

Engineer's Local, such member shall be given one (1) week's notice, or paid two (2) week's wages in lieu thereof, except in case of proper cause when no notice shall be required.

13.2 Separation Pay

A regular employee who has completed one (1) year of continuous employment and whose employment is terminated due to lack of work shall be entitled to separation pay eligibility as set out in subsection (A).

(A) An employee shall be excluded from separation pay eligibility if:

(a) he quits;

(b) he is terminated for just cause;

(c) 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:

(i) The direction or decree is the result of an illegal act committed by

the Company or one of its representatives, or (ii) The direction or decree purports to change the method of beer

retailing within the Province;

(d) 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;


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(e) 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;

(f) He is in receipt of income replacement benefits under the Weekly

Indemnity or Long Term Disability Plans or the Workers' Compensation Act;

(g) He is entitled to receive any pension under the Company or Government

Pension Plan; (h) for reasons caused by strike, lockout, slowdown or picketing.

(B) 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 the 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 Union, plus

(b) An additional 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 a brewery (or complete distribution and other operations of Pacific Brewers Distributors Ltd.) the 15 year maximum is replaced with a 22 year maximum.

(C) If an employee applies for and accepts a separation payment here under, his

employment is terminated and his seniority and other rights under the Collective Agreement are canceled.

ARTICLE 14 ADJUSTMENT OF COMPLAINTS 14.1 In the event that grievances or complaints arise between the parties to this agreement,

written notice shall be served by the party aggrieved within five (5) clear days, and the party addressed shall also give a written reply within five (5) clear days.

14.2 Any grievance which may arise over the interpretation of any of the provisions of this

Agreement or matters not covered by this Agreement shall be adjusted between the Management of the Company and the Business Representative of the Engineer's Local and if unable to reach an adjustment, the case shall be referred to a conference committee made up of the Company and one of the Engineer's Local, and a Chairman of the Board shall be selected by the aforementioned two representatives within ten (10) days.


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14.3 The Conference Committee shall convene not later than ten (10) days after notification by the Chairman, and the Committee shall render its decision within ten (10) clear days and from the date of the first hearing of such case. The Committee's decision shall be final and binding upon both parties; and it is agreed that there shall be no cessation of work or change of personnel pending such decision.

14.4 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 (two (2) years in the case of suspension) and thereafter not be relied upon for any purpose.

IN WITNESS WHEREOF, the Parties have hereunto set their hands and seal the day and the year above written. SIGNED ON BEHALF OF SIGNED ON BEHALF OF MOLSON CANADA INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 882 ________________________ __________________________ President ________________________ __________________________ Secretary __________________________ Business Manager


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SCHEDULE "A"

BENEFIT PLAN SECTION 1 EFFECTIVE DATE 1.1 This Schedule "A" shall continue to be binding on the parties to the Agreement for so

long as the Agreement is binding between the parties. SECTION 2 ELIGIBILITY Each regular employee shall be entitled to the benefits in this Schedule "A" subject to the following conditions: 2.1 If classified as a regular employee qualified for the present benefit plans on the date this

Agreement is signed, he shall be eligible on the effective date of this schedule "A" or 2.2 He must possess at least ninety (90) days of full time continuous service, uninterrupted

by layoff or unauthorized absence from work, as a regular employee of the Company. SECTION 3 BENEFITS Each eligible employee shall be entitled to the following benefits: 3.1 Life Insurance Effective April 21, 2008, each employee shall be insured for $90,000.00.

Note: Employees not actively at work on the above date shall be provided increased insurance coverage upon their return to work.

3.1.1 Dependent Life

Effective July 1, 2004, members of Local 882 can participate voluntarily in this program, provided they agree to payroll deductions and are accepted by the insurance company after having submitted evidence of insurability forms and required application documents.


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3.2 Accidental Death and Dismemberment

In addition to the life insurance under 3.1 above, each employee shall be insured for $90,000.00; in case of accidental death or dismemberment resulting from non-occupational causes.

Note: Employees not actively at work on the above date shall be provided increased

insurance coverage upon their return to work. 3.3 Hospital Coverage

The Provincial Government Hospital Plan shall be considered as part of this program for employees and dependents. To supplement this, each employee will be insured up to a maximum of fifteen dollars ($15.00) per day for a maximum of seventy (70) calendar days against expenses incurred by himself or his dependents due to hospitalization for non-occupational and non-maternity causes.

3.4 Medical Coverage

Each employee and his dependents shall be enrolled in the applicable Provincial Surgical and Medical Service Plan (MSP).

3.5 Extended Health Benefit Coverage

Each employee and his dependents shall be enrolled in the Manulife Financial Extended Health Benefit Plan (benefit coverage revised April 21, 2004). Members will be provided drug cards.

3.6 Dental Coverage

Each employee and his dependents shall be enrolled in the Manulife Financial Dental Plan.

Dental Basic Coverage will be provided as follows: (a) Year one (1) 2008 $1100.00 (b) Year two (2) 2009 $1100.00 (c) Year three (3) 2010 $1200.00 (d) Year four (4) 2011 $1200.00 (e) Year five (5) 2012 $1200.00


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The combined lifetime maximum for Restorative and Orthodontic Services is $4,000. Effective April 21, 2000, there will be a provision for an annual reinstatement of up to $1000 at the beginning of each calendar year, if required to restore such lifetime maximum to the level of $4,000. This change shall only apply to the eligible expenses incurred after the above date.

The "Restorative" coverage shall be seventy-five (75) percent of eligible expenses.

3.7 Vision Care

The vision care benefit will be $130.00 for employees and dependents every 24 months (children 12 years of age and under every 12 months).

3.8 Disability Income Plan (a) Eligibility

Each eligible employee shall be entitled to continuation of income as specified here under, during periods of absences due to disability, provided that:

(i) He is actively at work when the disability commenced, and not absent without

leave, or on layoff (other than annual shutdown of two (2) weeks); (ii) He is unable to perform his own job during the first 104 weeks of disability; and

(iii) He submits medical evidence of sickness or accident satisfactory to the Company and the Insurer.

(b) Full Compensation

1. Each eligible employee shall be entitled to full compensation at his base rate for any periods of absence under the following terms, provided that the absence is caused by sickness or accident that does not entitle the employee to Workers' Compensation payments (except as provided in (6) below).

(i) Regular status employees shall be granted sick leave of seventy-two (72)

hours per calendar year.

(ii) Sick leave will be allocated on a prorated basis during the year in which an employee attains regular status.

(iii) Unused sick hours up to a maximum of sixty-four (64) hours may be

cashed out at the end of the calendar year.


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2. The entitlement may be drawn upon at a maximum of thirty-six (36) hours, including stipulated Statutory Holidays, per calendar week during an absence.

3. An employee shall have the option of supplementing to full pay, his weekly

indemnity benefit after the first twenty-four hours (24) of sick leave. For each day supplemented the employee's maximum sick leave shall be reduced by three (3) hours.

(i) An employee shall have the option of supplementing to full pay, his

weekly indemnity benefits with his unused holiday pay after he has exhausted all his unused sick leave and eighteen (18) days have past since using his initial twenty-four (24) hours sick leave [as noted in Article 3.8 (b) (3)]. For each day supplemented the employee’s maximum holiday time shall be reduced by three (3) hours.

4. Provided the employee is actively at work, the entitlement will be re-established

each calendar year as follows: (i) If the entitlement had not been exhausted in the prior year, it shall be re-

established on the first day the employee is actively at work.

(ii) If the entitlement had been exhausted in the prior year, it shall be re-established only after the employee has returned to work full time and has completed one calendar month of work since his last absence on full compensation.

(iii) Should an employee be absent and drawing full compensation over the

end of a year, he may continue to draw on any unused portion until it is exhausted, but his entitlement in the new year shall be re-established only after he has returned to work full time and has completed one calendar month of work.

5. If the employee elects to do so, he may use his entitlement to full compensation

when absent due to a cause that entitles him to Workers' Compensation payments. The entitlement may be used as follows:

(i) Full compensation for any days of a waiting period that are not covered by

Workers' Compensation payments, and

(ii) To supplement Workers' Compensation payments to full base pay.

Subject to the provisions that any days that are supplemented to full base pay, the employee's maximum sick leave shall be reduced by three (3) hours.


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(c) Partial Compensation

1. When the entitlement to full compensation provided for in 3.8 (b) of this schedule has been exhausted, each eligible employee shall be entitled to partial compensation for periods of absences that extend beyond the period covered by 3.8 (b) of this schedule provided that the absence is caused by sickness or accident that does not entitle the employee to Workers' Compensation payments. The rate of partial compensation is outlined in 3. below.

2. The payment of partial compensation shall be limited to a maximum of five days

per calendar week including any stipulated Statutory Holidays occurring during an absence.

3. (i) The periods of partial compensation available shall be governed by the

insurance company procedures for a 104 week benefit period, starting with the first work day of an accident and the fourth work day of a sickness and including any part of an absence for which full compensation has been paid under 3.8 (b) of this schedule.

(ii) The rate of partial compensation shall be as follows: (a) For the first 26 weeks of an absence in accordance with 3 (i)

above,70% of his weekly wage (calculated by multiplying his applicable wage rate by thirty-six (36) hours).

(b) For the following 78 weeks on an absence in accordance with 3 (i)

above, 66 2/3% of his weekly wage (calculated by multiplying his applicable wage rate by thirty-six (36) hours).

4. Where weekly indemnity benefits payable under the weekly indemnity plan

together with weekly or lump sum time loss benefits payable by any other government supported or Crown Agency (including any plan or program established pursuant to the provincial automobile insurance act program) for the same disability exceed 100% of normal weekly earnings, the employee must reimburse any such excess to the weekly indemnity plan. The employee must, prior to receiving weekly indemnity benefits, execute such forms of authority as are necessary to permit the direct payment of any such weekly or lump sum time loss benefits to the Company. The Company shall then pay to the employee any moneys which the employee is entitled under this clause.


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(d) Long Term Disability

1. Commencing Long Term Disability

Should the disability, described above, continue beyond the end of the 104th week, the insured Long Term Disability Plan will commence at the 105th week and will continue until recovery, or age 65, whichever occurs first, provided the employee is unable to perform any job for an employer for which he is reasonably qualified by training and education or experience, to perform, as determined by the insurance carrier.

Where an employee has received Workers' Compensation payments for a 104 week period, the Long Term Disability Plan will commence at the 105th week and will continue until recovery, or age 65, whichever occurs first.

The weekly benefit will be calculated at 66 2/3% of wages (hourly rate times 36) in effect at the 104th week of disability and will be paid monthly.

2. Insured Plans

The Weekly Indemnity plan and the Long Term Disability Plan will be of 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.

3. Employees absent on effective date

Employees who are absent from work on Weekly Indemnity on the effective date of the new sickness and accident plans and

(i) Recover and return to work for at least a two (2) week period prior to the

expiry of their 104 weeks, shall then be covered by the Weekly Indemnity and insured Long Term Disability Plan, or

(ii) Recover and return to work for at least one (1) day prior to the expiry of

the 104 weeks in the case where the latest disability absence cannot be connected with the causes of any of the prior disability absences, shall be covered by the Weekly Indemnity and Long Term Disability Plan.


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4. Pension Accrual

The Company will provide the necessary moneys to build up the pension for an employee receiving benefits from the sickness and accident plans after the 26th week of continuous disability at the rate of pension accrual in effect at the commencement of the disability.

5. Effect on other Benefits

(i) Pensions

Payments from the Company under the Disability Income Plan shall be considered as income for Pension Plan purposes.

(ii) Group Insurance

Life, Hospitalization, Medical, and Dental Insurance Plans shall be continued in force during any absence for which the employee is in receipt of full or partial compensation.

(iii) Vacations

Employees who have exhausted their entitlement to full compensation under Section (ii) shall have the privilege of using any unused vacation to which they are entitled in the current vacation year to supplement partial compensation to full compensation.

(iv) Statutory Holidays

Due to the extended protection available under this Plan no wage payment shall be made for Statutory Holidays during a period of absence, but the disability benefits shall be made available for any such days as if they were work days.

6. Insurance Company regulations will apply to the insured benefits under this Plan.

SECTION 4 EMPLOYEE CONTRIBUTIONS The cost of the Benefit Plan shall be borne by the Company except as outlined in the second paragraph of Section 5 of this Schedule "A". Notwithstanding the foregoing, it is agreed that the Employee's share of the Employment Insurance Rebate will be retained by the Company to offset a portion of the cost of the benefit improvements contained in the Collective Agreement.


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SECTION 5 CANCELLATION OF BENEFITS An employee whose service with the Company has been terminated, shall not be entitled to any benefits after the date of such termination (except as provided for Pensioners in 6 below - Welfare Benefits for Pensioners). An employee on layoff for lack of work, or on leave of absence, may elect to continue his coverage for all benefits in this Schedule "A" except for Section 3.8 - Disability Income Plan, for a period allowed by the insurance company regulations, but not exceeding three (3) months, provided that he pays for the full cost of the continuing benefits, except that if he works at all during a month, his benefits will continue for that month. SECTION 6 WELFARE BENEFITS FOR PENSIONERS All benefits granted to employees who retired prior to the date of signing of the Agreement are governed by the Agreement in force on the date they retired. The following benefits will be provided to pensioners who retire after the date of signing of the Agreement, at no cost to the pensioner: (i) On Normal or S.E.R. Retirement

(a) Life Insurance continued at $4,000.

(b) Base medical and hospital benefits will be continued in a provincial plan for the life of a pensioner as long as he resides in a province of Canada.

(c) Provincial Health Care and Extended Health Care (at the standard 80%

reimbursement; $25.00 yearly deductible) will continue for the life of the pensioner, as long as he resides in a province in Canada.

(ii) On Partial Disability Retirement

(a) Life Insurance will be continued in the applicable amount prescribed in Schedule

A, 3.1 to age 65; then reduced to $4,000.

(b) Base medical and hospital benefits will be continued in a provincial plan for the life of the pensioner, as long as he resided in a province of Canada.


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SCHEDULE "B"

SUMMARY OF THE DEFINED BENEFIT PENSION PLAN SECTION 1 HISTORY AND EFFECTIVE DATES The Plan became effective January 1, 1970 and replaced the Molson's Western Breweries Limited Non-Staff Pension Plan (1968) which in turn replaced the Molson's Western Breweries Limited Pension Plan, which became effective January 1, 1961. The main provisions of the text of the Plan as amended to January 1, 1989 are summarized below. SECTION 2 ELIGIBILITY All regular full time employees within the bargaining unit to which the Plan applies are covered by the Plan after the completion of ninety (90) days worked of full time continuous service, uninterrupted by layoff or unauthorized absence from work, as a regular employee of the Company. SECTION 3 CONTRIBUTIONS Employees contributed 5% of Pensionable Earnings prior to January 1, 1972. Between January 1, 1972 and December 31, 1988, employees contributed 3% of Canada Pension Plan Personable Earnings plus 5% of earnings in excess of these earnings. Starting on January 1, 1989 employees will contribute 1.5% of the Canada Pension Plan Personable Earnings, plus 5% of earnings in excess of these earnings. SECTION 4 CREDITED SERVICE Credited service is defined as the period that an employee made required contributions to the Company's Pension Plan and had not withdrawn them, and after December 1, 1971, includes any period during which the employee was receiving Long Term Disability Benefits.


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SECTION 5 NORMAL RETIREMENT Normal retirement takes place at age 65. SECTION 6 EARLY RETIREMENT Early retirement is permitted after the attainment of age 55, with consent of the Company. The pension payable on early retirement shall be the accrued benefit at the date of retirement reduced by a factor for each year that early retirement precedes age 65 as follows:

Age Credited Service Factor

over 55 30 years or more 2%

less than 60 20 - 30 years 4% less than 20 years 4%

60 years 30 years or more 0% 20 - 30 years 2% less than 20 years 4% SECTION 7 SPECIAL EARLY RETIREMENT Effective January 1, 1974 provision is made for a Special Early Retirement option on fully accrued benefits (no actuarial reduction) for an employee who retires after attaining age 60 and prior to attaining age 65, if the employee has completed 30 years of credited service. SECTION 8 DISABILITY RETIREMENT An employee who has attained age 50 and completed ten (10) years of service and becomes partially disabled, may, with the agreement of the Company, retire and receive an annual pension equal to his full accrued pension plus a supplementary benefit of $14 per month multiplied by the number of years of credited service, up to a maximum of 30 years. The supplement is payable to the earlier of age 65, or until the time C.P.P. benefits are payable.


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SECTION 9 PENSION BENEFITS (i) The pension payable on normal retirement is: (a) 2% of Personable Earnings for each year of Credited Service after December 31,

1960 and prior to December 31, 1971 (service for which contributions were made and not refunded).

(b) 1.65% of Canada Pension Plan Personable Earnings, plus 2% of earnings in

excess of the Canada Pension Plan Year's Maximum Personable Earnings for each year of credited service between January 1, 1972 and December 31, 1988.

(c) 1.50% of Canada Pension Plan Personable Earnings plus 2% of earnings in excess

of the Canada Pension Plan Year's Maximum Pensionable Earnings for each year of credited service on or after January 1, 1989.

(ii) Upgrading

The annual pension accrued to December 31, 1973 for employees who were contributing members of the Plan on that date will be "upgraded" to provide an amount which is the greater of:

(a) 1.5% of the employee's 1973 earnings multiplied by the years of credited service,

counting from the date the employee first started to accrue benefits under a Company Pension Plan to December 31, 1973,

or,

(b) The normal pension which the employee had accrued as at December 31, 1973 based on the pension formulae applicable under the Plan prior to the "upgrading".

(iii) Escalation

For employees who retire on or after January 1, 1974, the basic pension benefit as calculated above will be subject to an annual escalation based on the increase in the Consumer Price Index. The adjustment will be made on January 1st each year, based on the twelve month percentage increase as of the prior September 1, to a maximum of 2%.


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SECTION 10 DEATH BENEFITS (i) Before Retirement (a) On the death of an employee who has completed 15 years of service and has an

eligible widow, there will be payable a spouse's benefit of 50% of the employee's accrued pension.

(b) On the death of any other employee member, there will be payable a benefit of the

employee's accumulated contributions with interest. (ii) After Retirement

The pension is payable for life, but with a minimum return of the employee's own contribution with interest. The member may elect an optional form of pension.

SECTION 11 BENEFITS ON TERMINATION OF EMPLOYMENT On termination of employment, an employee may receive a return of his own contributions with interest. If employment is terminated on or after April 21, 1988 and after completion of two (2) years of continuous service, an employee may elect to leave his contributions in the Plan and receive a deferred pension from his normal retirement date equal to his pension accrued to his date of termination. SECTION 12 DEFERRED RETIREMENT Should mandatory retirement at age 65 be no longer permitted by law in this Province and a regular employee continues in employment beyond his normal retirement date, the following conditions shall govern such employment and be added to the Collective Agreement. (i) The Pension to which the employee has become entitled at his normal retirement date

(the "Pension"), shall be frozen as of the employee's normal retirement date as defined in the Pension Plan.

(ii) 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 as of the first day of the month immediately preceding the employee's seventy-first (71) birthday, whichever shall first occur (the 'Pension Date").


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(iii) The employee's Pension will include any escalation benefits which occur from his normal retirement date to his Pension Date.

(iv) 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. (v) An employee's Pension will not be affected by any amendments made to the Pension Plan

after the employee's normal retirement date. (vi) 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.

(vii) 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.

(viii) An employee who continues in the employee 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.


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SCHEDULE "C"

DC PENSION PLAN The terms and conditions of the plan are described within the Company “Intranet.”


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LETTER OF UNDERSTANDING #1 BETWEEN: MOLSON CANADA AND: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 882 RE: DC PENSION PLAN During negotiations for the collective agreement to be in effect on April 21, 1997 the Company and the Union agreed to offer a Defined Contribution Pension Plan to members of Local 882. The plan will be the same as the Salaried DC Plan with the single exception being that the Company’s contribution will be 5% rather than 6.2% of the individual’s monthly pensionable earnings. Members choosing to join the DC Pension Plan make an irrevocable choice and will not be allowed to re-enter the current Defined Benefit Pension Plan. Future new hires will automatically be enrolled in the DC Pension Plan. SIGNED ON BEHALF OF SIGNED ON BEHALF OF THE COMPANY THE UNION


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LETTER OF UNDERSTANDING #2 BETWEEN: MOLSON CANADA AND: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 882 RE: DC PENSION PLAN During negotiations for the collective agreement to be in effect on April 21, 2000, the Company and the Union agreed to implement the same Defined Contribution Pension Plan as the Salaried DC Plan. The terms and conditions of the plan are described within the Company “Intranet.” Members choosing to join the DC Pension Plan make an irrevocable choice and will not be allowed to re-enter the current Defined Benefit Pension Plan. Future new hires will automatically be enrolled in the DC Pension Plan. During negotiations for the collective agreement to be in effect on April 21, 2004, the Company’s contribution will be 6.2% of the individual’s monthly pensionable earnings. SIGNED ON BEHALF OF SIGNED ON BEHALF OF THE COMPANY THE UNION


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LETTER OF UNDERSTANDING #3 BETWEEN: MOLSON CANADA AND: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 882 RE: SOFT QUALITY CONTROL It is Management’s intention to have Local 882 employees take full ownership of their mechanical and process systems. For this to occur, it is reasonable to expect Local 882 to have control of these processes from beginning to end. Management is willing to facilitate this, conditional on Local 882 employees taking on “Soft Quality Control” tasks that may have been done by others in the past. Examples would include: dissolved oxygen readings for water tanks and CO2 saturation testing of dilution water. Union and Management will meet to discuss operational requirements, upgrading of systems as required and mutually agreed with, and that the proper training and sufficient manpower needs are met. SIGNED ON BEHALF OF SIGNED ON BEHALF OF THE COMPANY THE UNION


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LETTER OF UNDERSTANDING #4 BETWEEN: MOLSON CANADA AND: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 882 RE: CHIEF ENGINEER The Company and the Union agree that, for the life of this collective agreement, the current Chief Engineer shall continue to act as the Chief Engineer. As a result of the current Chief Engineer continuing to act as Chief Engineer the junior engineer shall come onto full (regular status) benefits. If at any time (during the life of this contract) the Company wishes to fill the Chief Engineer position with a staff employee, the current Chief Engineer shall return to his old position as a shift engineer and the junior engineer shall remain a full time employee until the current contract has expired. If at any time (during the life of this contract) the current Chief Engineer wishes to return to his former position as a shift engineer he shall be allowed to do so, however, if that occurs, the junior engineer shall be terminated without grievance. The Company also wants to note that if/ when the current Chief Engineer returns to working as a shift engineer (or leaves the Company) the vacated Chief Engineer position will be filled as the Company deems fit, either with a staff employee or with another unionized employee. SIGNED ON BEHALF OF SIGNED ON BEHALF OF THE COMPANY THE UNION


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LETTER OF UNDERSTANDING #5 BETWEEN: MOLSON CANADA AND: INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 882 RE: WORLD CLASS MANAGEMENT Molson Canada (Vancouver Brewery) and the IUOE, Local 882 are committed to delivering and supporting the achievement of World Class results throughout the brewery. In particular, achievement of World Class benchmarks for Energy and CO2 usage, will be the focus for all IUOE, Local 882 Powerhouse employees. Clear targets and action plans with defined equipment responsibilities will be set jointly each year. Monthly WCM target review meetings will be held to track progress and set course corrections as required. SIGNED ON BEHALF OF SIGNED ON BEHALF OF THE COMPANY THE UNION

collective agreement between molson canada …molson agreement moa 05/21/08 4 this agreement made...

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