FILE No.

CERT. FILE

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~ Collective Agreement

between

Dana Canada Corporation Brantford, Ontario Plant

and

CAW Local 397

February 24, 2008- February 23, 2011

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PREAMBLE

"Collective Agreement entered into on February 24, 2008 between Dana Canada Corporation, Thermal Products Plant, Brentford, hereinafter referred to as "the Company," and The National Automobile, Aerospace, Transportation and General Workers Union of Canada and its Local Union 397, hereinafter referred to as "the Union." ARTICLE 1 -PURPOSE OF AGREEMENT 1.01 It is mutually agreed that the purpose and intent of this Agreement is to promote cooperation and harmony between the Employer, the Employees and the Union and to secure for the parties the full benefits of orderly Collective Bargaining, to recognize mutual interest and . to provide a channel through which information and problems may be transmitted from one to the other, and to provide an amicable method for the fair and peaceful disposition of all Grievances, to promote efficiency in the production of quality products, and set forth the conditions of employment to be observed by the Employees, the Union and the Company. The parties agree to work collectively to maintain a culture of empowerment, continuous improvement, safety and involvement using tools such as lean manufacturing techniques, flexible manufacturing and cross-functional teams in a spirit of cooperation.

1 .02 In this Agreement, words using the masculine gender include the feminine and neutral; the singular includes the plural, and the plural, singular where the text so indicates .

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1.03 The company and the union agree that they will exercise their rights in the administration of this agreement in a fair and reasonable manner.

ARTICLE 2- RECOGNITION

2.01 The Company recognizes the Union as the exclusive Collective Bargaining agent of all regular plant employees at its plant locations in Mount Forest, Ontario, Brantford, Ontario and Oakville, Advance Road, Ontario, save and except supervisors, persons above the rank of supervisors, office and plant clerical staff, sales staff, technical staff such as work measurement and lean staff, quality control staff (excluding quality control inspectors, quality control technicians), laboratory staff, engineering staff, such as professional engineers, engineering technicians, designers.

A Lead Hand/Support Tech./Coordinator leads a group of people in his/her department. He/she may be required to perform the regular duties of his/her normal classification and in addition, assign work to the individuals in other classifications under his/her direction. An employee may only be a Lead Hand in his/her regular department and shall have no rights over and above the other employees in their regular classification or department. He/she will report directly to the Supervisor of the department and will not be involved with the hiring, separation or formal disciplinary procedures of the Company

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2.02 The words "employee" or "employees" when used in this Agreement shall mean only such regular plant employees as are included in the bargaining unit as defined in Clause 2.01.

2.03 Regular employees shall include everyone under clause 2.01 except temporary employees as provided for in this agreement.

ARTICLE 3- MANAGEMENT RIGHTS

3.01 The Union recognizes and acknowledges that the Management of the Plant and direction of the working force are fixed exclusively in the Company, without restricting the generality of the foregoing, the Union acknowledges that it is the exclusive function of the Company:

~ To operate and administer its affairs, to direct the working force, to plan, direct and control operations including the scheduling of working hours, the number of employees, the right to hire and select employees.

~ To promote, transfer, demote and layoff employees and suspend, discharge or otherwise discipline employees for just cause subject to the right of any employee to lodge a grievance in the manner and to the extent herein provided

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The right to make, enforce, and alter, from time to time, Rules and Regulations covering the operations, a violation of which may be among the reasons for discipline or discharge, subject to the Grievance Procedure. The company may also release employees because of lack of work as per the layoff procedures contained within this agreement.

l> The Union further acknowledges that the Company has the right to make and alter, from time to time, reasonable rules and regulations to be observed by employees, which rules and regulations shall not be inconsistent with the provisions of this Agreement. Any changes to these rules and regulations will be meaningfully discussed with the Bargaining Committee before publication. The company agrees to notify the union and employees prior to implementing such rules and will apply all rules and regulations in a fair and reasonable manner.

l> To determine the nature and kind of business conducted by the Company, the kinds of locations of plants, equipment, product components, parts and material to be used, parts, components, products, materials, services, and equipment purchased, the control of materials and parts, the methods and techniques of production, and the right to introduce new and improved standards.

l> To foster, determine and implement systems, training and methods to support Production, Environmental, and Health and Safety Directions and Policies which includes job rotation and cell teams.

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l> Nothing in this Agreement shall be deemed to restrict management in any way in the performance of all functions of management except those specifically abridged or modified by this Agreement

)> To employ up to 10% of the workforce in a temporary manner, provided there are no regular employees on layoff that can perform the work.

ARTICLE 4- UNION REPRESENTATION

4.01 The Company acknowledges the right of the Union to elect plant representation as follows: Day shift, one (1) representative; Afternoon shift, one (1) representative; Night shift, one (1) representative. In addition the Company will recognize a Plant Unit Chairperson who shall be assigned to day shift and shall be provided such time as is required to deal with the Collective Agreement issues as described in the "Letter of Understanding" on Union Representation.

Regular union/management meetings will be scheduled by the company and the company will provide the union committee with one-hour preparation time.

Union Representatives will be paid their regular wages (to a maximum eight (8) hours per day) for authorized time spent attending meetings with the company, including negotiations. The company is not responsible for time spent at arbitration hearings.

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One of the duties of the Union representatives shall be to represent the Employees in the processing of grievances as outlined in the Grievance Procedure.

4.02 The Union will inform the company in writing of the names of the Committeeperson(s) including the Plant Chairperson, and any subsequent change in the names of the Committeeperson(s) and Plant Chairperson. The union has the right to designate an alternate and will so advise the company and the Company will not be required to recognize the Committeeperson(s) and Plant Chairperson until such notification from the Union has been received.

4.03 The Company will grant reasonable time off with pay during working hours for the Plant Chairperson, or Union representative to directly participate in the investigation and adjustment of grievances, or contract administration. Such person or person(s) must request permission from their immediate supervisor to leave their work stations and must report back to their supervisor when they have completed their grievance activity. Employees who request to speak to their union representative will have this arranged by their supervisor within two (2) hours of the request.

(a) The Plant Chairperson will be granted two (2) hours per day during his regular shift, paid by the company to conduct union business. This time is exclusive of time spent in Union/Management regular scheduled meetings or in regularly scheduled grievance meetings. Should the Plant Chairperson be required to leave the facility during this time he will notify the Human Resource Manager or his designate prior to leaving the plant.

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4.04 When an employee is called to a meeting where the company is investigating that employee and that investigation could lead to discipline, he shall have a union representative present during any meeting or portion of meeting in which discipline is to occur.

4.05 Any union representative including the in-plant bargaining committee, the local President or the national Representative may enter the plant off-shift to conduct union business. The company must be notified prior to entering the plant.

4.06 The Company agrees to recognize a Negotiating/Bargaining Committee not to exceed four ( 4) Employees who will be from the Plant Committee, along with a Representative from the National Union, and/or the representative of the CAW Local 397.

4.07 The Union will be allowed to post on a bulletin board, provided by the Company, notices approved by the Plant Chairperson, Officer of the Local Union, or the National Representative, regarding meetings and matters pertaining only to the Union. Before posting, all such notices must be approved by the Plant Manager or the Human Resources Manager.

4.08 It is agreed that the Union, its members or agents shall not distribute or cause to be distributed any handbills, pamphlets, literature, or Union material during working hours unless approved by the Plant Manager or the Human Resources Manager. The .company will not unreasonably withhold permission.

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4.09 Union representatives shall have top seniority during the term of office for the purpose of layoff and recall subject to having the ability to perform the available work.

ARTICLE 5- STRIKES AND LOCKOUTS 5.01 The Union agrees that during the term of this Agreement, there shall be no strikes, sit-downs, work stoppage, slowdown, or suspension of work, either complete or partial for any reason. The company agrees there shall be no lockout so long as this Agreement continues to operate. 5.02 The Union further agrees it will assist in ensuring that no work stoppage will result in our Company's plants from any dispute, which may arise between any other employer and his employees. 5.03 The words "strikes" and "lockouts" as used herein are agreed to have the meaning defined in the Labour Relations Act.

ARTICLE 6- GRIEVANCE PROCEDURE 6. 01 A grievance is defined as an alleged violation of this Agreement or a dispute as to the interpretation or application of any provision of this Agreement.

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6 . 0 2 Any complaint alleging violation, misinterpretation or misapplication of the terms of this Agreement relating to rates of pay, wages, hours of work or any other working condition shall first be taken up verbally by the employee with the employee's immediate supervisor. (a) If the employee is not satisfied with the response he may request to speak to the union representative on his shift.

(b) The Committee person with the employee may hold a further discussion with the supervisor. If after this discussion has taken place, any alleged violation of the agreement which remains unsatisfied may then be reduced to writing by the committee, on the form provided by the Company and signed by the employee, and shall then constitute a grievance.

(c) All grievances must identify the Article, Clause or Clauses of this Agreement which are claimed to have been violated. No grievance will be invalidated for not meeting the requirements of this provision and will be processed on its merits once the grievance has been properly completed . 6. 03 Step/. Within two (2) days, the written grievance, as defined above, will be presented by the Committee person to the Department Manager.

Within two (2) working days of this presentation, the Committee person shall meet with the Department Manager and discuss the grievance.

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The Department Manager will render his/her decision personally, in writing, to the Committee person within (two) 2 working days of the meeting.

Any settlement of grievances at this step shall be without prejudice or precedent.

6 . 0 4 Step II. If no agreement is reached at Step I, then, within two (2) working days of that decision the Plant Chairperson shall take up the grievance with the Plant Manager or his designate. Within two (2) working days of this presentation, the recipient will render his/her decision personally to the Chairperson, noting h'1s/her conclusion in writing and countersigning the Grievance Form.

6. 05 Step Ill. If no agreement is reached at Step II, then within five (5) working days of that decision the Plant Chairperson may advance the grievance to the grievance meeting agenda by presenting it to the HR Manager.

6. 0 6 The grievance will then be discussed at a regularly scheduled grievance meeting between the Plant Committee and the Company ..

6. 0 7 Within five (5) working days after such meeting, the HR Manager or his/her designate, shall give a written answer on the grievance to the Plant Chairperson.

6 . 0 8 At any time during this process the company and union may call on the Local Union president and/or

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national Representative and the Corporate Industrial Relations Manager to try to resolve these issues.

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6. 0 9 Step IV. In the event that arbitration of a grievance which has been properly processed through the Grievance Procedure is desired by either party, then the other party shall be notified in writing not later than thirty (30) working days after receipt of the reply given in writing on the grievance under Step IlL

6. 10 Grievances that involve suspension or discharge may be submitted directly to the Human Resource Manager to be considered to be at Step Three (3) of the process.

An employee being discharged will be given the opportunity to meet with his shift Committee Person or a representative of the Plant Committee, for a reasonable period of time, not to exceed thirty (30) minutes, paid at the applicable rate, prior to leaving the plant

A claim by a regular employee that he has allegedly been wrongfully discharged may be recognized as a grievance, provided that a written grievance is filed, at Step Three of the Grievance Procedure within three (3) working days after the employee has been notified in writing of such discharge.

A period of eighteen (18) months from the date of issuance, of any disciplinary action given to an employee, will result in removal of said disciplinary action from the employee's personnel record and all subsequent discipline be reduced to its relative leveL

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On a group complaint, the Committee person shall first discuss such complaint with the immediate Supervisor. Either party may request that one employee from the

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group be present during such discussion. If the complaint remains unsatisfied, the Committee person may then reduce the complaint to writing and signed by the aggrieved employees, it shall then constitute a grievance.

It is agreed and understood that all grievances must be presented, in writing, within five (5) working days from the time the alleged breach became known or should become known to the aggrieved employee or party.

Time limits may be extended at any step of the process by mutual agreement in writing.

6 .11 Such grievance may then be referred to the appropriate impartial Arbitrator listed.

6. 12 Grievances appealed to arbitration will be presented to the Arbitrators hereinafter. Only

. grievances relating to the same violation or alleged violation of this Agreement may be grouped for such arbitration hearing before the appropriate Arbitrator. Submission of grievances to the Arbitrators will be determined in this order:

(A) By the date of the Company's reply to the grievance at Step Ill of the Grievance Procedure.

(B) By the date the grievance was filed.

(C) By the grievance number.

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Grievances concerning suspension, discharge, interpretation of the Agreement including Welfare Plan, shall be processed to arbitration prior to all other types of grievances unless mutually agreed otherwise. If the arbitration date with the arbitrator cannot be set within 120 days the party who requested the arbitration has the option to choose the next arbitrator from this list.

6. 13 The following constitutes the list of the Arbitrators:

Prof. Wesley B. Rayner Peter Barton Anne Barrett R. Levinson

6.14 The Arbitrator will set a date for the hearing, within reasonable time delays, to penmit both parties to present their case and will render a decision as soon as possible after the completion of hearing all evidence.

The decision of the Arbitrator shall be binding ahd final upon both parties. The Arbitrator shall be restricted in his award to the provisions of this Collective Agreement, and shall not in its award add to, delete from, or otherwise alter or amend any provisions of the Agreement, or deal with any matter not covered by this Agreement.

Each party will equally bear the expense and fees of the Arbitrator. Any witnesses called by the parties will be at their individual expense.

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Any grievance resolved or withdrawn and that decision is subsequently appealed through the Appeals Procedure established by the CAW constitution or any other Appeals Procedure, and such appeal is upheld, the grievance shall be considered timely and will be processed to the next step of the Grievance Frocedure.

ARTICLE 7- UNION MEMBERSHIP AND CHECK· OFF/UNION DUES

• All present employees, new hires and probationary employees, as a condition of employment, shall become and remain members of the Union, for the term of the agreement.

• Dues are defined for the purpose of this clause as the regular dues and initiation fees as prescribed by the constitution of the Union.

• The Company will deduct from the pay cheque of each employee, regular monthly Union dues, and remit same to the financial secretary of Local 397 CAW-Canada by the tenth (1Oth) of the month following the month in which the dues were deducted.

• Initiation fees shall be taken off after the employee has completed the probationary period and shall be taken off on a different pay period than the dues deduction period, immediately after an employee has completed his probationary period.

• The Company will, at the time of making each remittance, supply a list of the names of each employee from whose pay deductions have been made and the amount

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deducted for the month including the name and status of any employee from whom the Company has made no dues deductions. This list will also indicate any employee whose employment is terminated, transferred out of the bargaining unit, or who has died.

• The Company agrees to supply the CAW National Representative with a list of all employees' names, addresses, postal codes and telephone numbers upon ratification of the agreement and semi annually thereafter. The Company further agrees to provide the financial secretary of Local 397 with a quarterly list of any changed addresses and postal codes along with names, addresses, postal codes and telephone numbers of new employees hired.

• No deduction shall be made from the pay of any employee, in any month, where such employee has worked less than a total of forty ( 40) hours.

• The Company agrees to include on an employee's T-4 slip for income tax purpose, the total Union dues paid for the year excluding any initiation fees.

• The Union agrees to indemnify and save the Company harmless against all claims or other forms of liability that might arise out of, or by reason of, deductions made or payments made in accordance with this collective agreement.

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ARTICLE 9- PROBATIONARY PERIOD

9. 01 During their probationary period, probationers shall be subject to release by the Company and the Company will have no responsibility for re-employment of · probationers. Probationary employees shall have no rights of grievance under any terms of the Collective Agreement unless there is a violation of the Human Rights Code. The Plant Chairperson will be advised of the release of any probationary employee and the reason for such a release. The probationary period will be ninety (90) calendar days from the first day of work.

ARICLE 10- SENIORITY

10.01 The term "seniority," as used herein, shall mean accumulated time from the original date of hire in this facility, unless interrupted by circumstance detailed in any clause in this collective agreement as agreed upon by the parties.

10.02 In the case of equality in seniority ranking, seniority shall be determined by the lowest employee number. Employee numbers will be randomly selected by lottery method during the hiring process for the purposes of this clause.

10.03 An employee will lose his seniority and his employment with the Company will be terminated for any of the following reasons:

(a) If he voluntarily quits. (b) If he is discharged and not reinstated through the

· grievance procedure.

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(c) If he retires. (d) If the employee is absent without Company

approved leave of absence, for more than three (3) consecutive working days (excluding premium days), without satisfactory medical evidence.

(e) If an employee has been laid off and does not return to work within five (5) days of notification by phone or from delivery of the first notice of the registered letter, advising him to report for duty. A copy of the registered letter will be provided for the Plant Chairperson at the time of mailing.

(f) If an employee is laid off due to lack o"f work and not recalled for a period of service to a maximum of forty-eight (48) months.

10.04 It shall be the responsibility of the employee to notify the Company promptly of any change in their address and telephone number (listed or unlisted) in a manner determined by the Company. If any employee fails to do so, the Company will not be responsible for failure of any contact or written notice or e-mail to reach such employee. A copy will be sent to the Local Union President.

10.05 The Company agrees to post quarterly an up-to-date seniority list. A copy of the seniority list will be provided for the Plant Chairperson and to the Local Union President.

ARTICLE 11 -LAY OFF

In the event management determines the necessity to reduce the number of employees in a shift or department in the plant, the following procedure shall be followed:

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11.01 Students, temporary employees and then probationary employees will be laid off first. This will not apply to employees in skilled trades departments, if that department is not being reduced.

11 .02 Regular Layoff (More than 3 working davsJ

On the basis of their seniority, the most junior (non Skilled Trades) employees affected by the reduction in the work force .shall be the first to be laid off.

11.03 Product/Job Elimination

In the event of a layoff caused by the elimination of a product/job, employees affected shall exercise their seniority on a plant wide basis by "bumping" an employee with lesser seniority.

11 .04 Work Shortage Days (Up to 3 working davs)

In cases of work shortage days, not to exceed three (3) working days in any one (1) week and no more than (10) days per calendar year, an employee may be laid-off without regard to seniority, except between employees in the same department, on the same shift.

The Company will post for volunteers to achieve the necessary temporary layoff from the affected department and shift. Volunteers will be selected by seniority. If the number of employees is insufficient

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to achieve the required reduction, layoff will be in accordance with 1l.02 in the affected department and shift.

11.05 Voluntary Inverse Lavoff

During layoffs exceeding three (3) working days, to a maximum of thirteen (13) weeks. An employee who does not choose to exercise his seniority rights may take a voluntary layoff with seniority recall rights to his department and/or shift. After 30 days this employee will have tlie option of placing his name on the General Recall list. Should this employee's department and/or shift be discontinued during the layoff his name will be placed on the General Recall list.

Layoff by inverse seniority will apply to any layoff after students, temporary and probationary employees have been laid off.

Any employee desiring to elect a layoff by inverse seniority, or withdraw their name from the inverse list, may do so by signing and filing the appropriate form with the Human Resources Department at least six (6) days prior to the notice of layoff.

11.06 Training

Employees may be kept out of seniority for a maximum of thirty (30) days during a lay off for the purpose of training of their replacement. An extension may be mutually agreed to by the Union and the Company.

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11.07 Returning from WS/8/STD/L TO

When an employee returns to work from a non­occupational illness or injury, occupational illness or injury, or other company approved leave of absence, they will be reinstated in their former department and shift, seniority permitting, if such position exists. If no such position exists, they will exercise seniority per Clause 11 03.

11.08 Notice of Lavoff and Recall Option

If no work is available because of fire, power outage, Act of God, or for any other reason beyond the control of the Company, employees may be laid off and the layoff notice provisions will not apply. All other provisions of the Collective agreement will apply.

The Company must provide a minimum of two (2) days working days notice for a layoff, of more than ten (10) working days, to the effected employees and the Plant Chairperson.

Employees must choose their recall option, (department/shift recall or general recall) at the time they are laid off. Laid off employees can change their recall option, at•any time, with forty-eight (48) hours written notice to the Company.

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ARTICLE 12- RECALL

12.01 Recall of employees from layoff will be in the reverse order of layoff as outlined in the provision of Clause 11.01. Employees wjJJ be assigned to the same department as they were laid off from if:

1) They have chosen to be recalled only to their own department.

2) They have the seniority to maintain that position.

3) That department has an opening to which they may be assigned.

Otherwise the company may assign a recalled employee to departments or position as required.

ARTICLE 13- JOB POSTING

13.01 If a permanent job vacancy exists, or new job departments are created in the plant, such openings shall be posted on the plant bulletin boards for a period of three (3) working days, during which time regular, qualified employees at work in the plant at the time of such job posting may make application for such job vacancy. The company will forward a copy of the Job Posting to the Union at the time of the posting. For those employees on WSJB, WI or Company approved Leave of Absence, the affected employee will contact the chairperson and authorize him to post on his behalf.

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13.02

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13.05

13.06

Employees shall be permitted to bid for other job departments except that the successful employee shall be entitled to only one (1) such transfer every six (6) months, as a result of obtaining such job transfer by job posting.

Employees bidding for a permanent job vacancy shall be considered by the Company, at the time of the job posting on the basis of seniority, provided the employee is able to perform the job after the three (3) day training period.

Employees bidding for Skilled Trades positions will be required to have an apprenticeship, or be capable of obtaining the required certification within a determined period of time, or pass a pre determined skill based lest to be successful.

Employees reclassified as a result of job bidding who cannot demonstrate the skill and ability to perform the job, may be removed at any time up to ten (1 0) working days on the job. Such employee will be returned to his former department and shift. The trial period may be extended by mutual agreement between the company and union. The Company will select the next eligible employee from the job posting applications, if any.

The next three (3) vacancies, if any, created by successful job bidding will be filled by job posting. Any subsequent job vacancies will be filled at the discretion of the Company in a manner determined by the company.

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13.07 Nothing contained in the Article shall be construed to limit the Company's right to hire new employees from outside the plant ifthere are no bargaining unit members on layoff, or if there are no qualified employees within the bargaining unit to fill the vacancy.

13.08 Lead Hand positions will not be subject to the provisions of Article 13.

ARTICLE 14 ·TEMPORARY ASSIGNMENTS/TRANSFERS

14.01 Employees may be temporarily assigned, by the Company, to departments other than their own for a period, not to exceed thirty (30) days, due to the varying of customer schedules and needs, as well as absenteeism, vacations, leaves of absence or illness. These assignments will be made on the basis of seniority. The employee involved will be paid the rate of pay for his own position or the position to which he is being temporarily assigned, whichever is higher, for the length of the temporary assignment.

14.02 A transfer shall be considered temporary provided it does not exceed thirty (30) working days. If such transfers exceed this period (except in the case of a modified duty assignment), it will be filled by the plant posting procedure, on a temporary basis. Such time limits may be extended by mutual agreement based on the reason for the vacancy.

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14.03 If the temporary transfer is as a result of illness, injury, or occupational accident or illness, or extended leaves of absence, the opening shall not be posted as a permanent vacancy but may be filled by the plant posting procedure, on a temporary basis. The temporary posting will be cancelled when the employee on leave returns to work and the employee filling the position will revert back to their own department and shift

. ARTICLE 15- PAID HOLIDAYS.

15.01 The following shall be considered as paid holidays under the terms and conditions of Article 15 of this Collective Agreement:

Year 1 Year 2 Year 3 Friday, Friday, Friday,

Good Friday March 21/08 April10/09 April 02/10 Monday, Monday, Monday,

Victoria Day May 19/08 May 18/09 May 24/10 Monday, Friday, Friday,

Canada Day June 30/08 July 03/09 Julv 02/10 Monday, Monday, Monday,

Civic Holiday Auqust 04/08 Auoust 03/09 Auqust 02/10 Monday, Monday, Monday, September September September

Labour Day 01/08 07/09 06/10 Monday, Monday,

Monday, October October Thanksgiving October 13/08 _12/09 11/10

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Wednesday, Thursday, Friday, Christmas December December December Eve Day 24/08 24/09 24/10

Thursday, Friday, Monday, Christmas December December December Day 25/08 25/09 27/10

Friday, Monday, Tuesday, December December December

Boxinq Day 26/08 28/09 28/10 ·Monday, Tuesday, Wednesday,

Christmas December December • December Holiday 29/08 29/09 29/10

Tuesday, Wednesday, Thursday, Christmas December December December Holiday 30/08 30/09 30/10

Wednesday, Thursday, Friday, Christmas December December December Holiday 31/08 31/09 31/10

Friday, Monday, New Years Thursday, January January Day January 01/09 01/10 03/11

15.02 Any employee who does not work the entire last scheduled working day immediately preceding and the entire scheduled working day immediately following any of the Paid Holidays listed in Clause 15.01, shall not be entitled to pay for the Holiday, unless stated in the Clause 15.07. The company will review each circumstance of any absence which disqualifies an employee from receiving the Holiday payment and if satisfied.with the detailed reasons for the absence will authorize payment based on those circumstances. An employee who declares an emergency day or part day and presents proof of such need shall be paid for the holiday.

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15.03 An employee will also not be paid for a Paid Holiday if: (a) He has been laid off. (b) He is receiving Worker's Compensation. (c) He is on paid sick leave absence from the

company. (d) He is on any approved long-term leave of

absence from the Company except as provided for in 15.06.

15.04 Employees eligible for payment of a Paid Holiday will be paid a normal day's pay on the basis of the applicable hourly rate of the job to which they are assigned the day prior to the Holiday, up to a maximum of eight (8) hours on their regularly scheduled shift if they work on a steady shift.

15.05 If a Paid Holiday falls within an employee's annual vacation, an employee may request to be allocated an additional day in his vacation or may schedule the day at another time.

15.06 If any of the Paid Holidays listed in Clause 15.01 falls on a Saturday or a Sunday (and has not been replaced by another day by statute or decree), such Holiday will be observed either on the previous Friday, or the following Monday.

15.07 If an employee is laid off and recalled between December 1 and January 15, and works the full day before the layoff day and works.the day of his recall, the employee will be eligible for payment of the paid holidays during the period. An employee laid off or recalled within seven (7) days of a holiday will be paid for the Holiday as per 15.02.

29

ARTICLE 16- VACATIONS

16.01 Vacations with pay shall be granted to employees, according to their seniority on July 15

' of the vacation year. Vacations can be scheduled twelve (12) months in advance.

Effective July 1, 2008 to June 30, 2009

Service Length of Vacation 6 months but less than 1 year 5 days 1 year but less than 2 years 11 days 2 years but less than 3 years 12 days 3 years but less than 4 years 13 days 4 years but less than 5 years 14 days 5 years but less than 6 years 15 days 6 years but less than 7 years 16 days 7 years but less than 8 years 17 days 8 years but less than 9 years 18 days 9 years but less than 10 years 19 days 1 0 years or more 20 days

Effective July 1, 2009 to Februarv 23, 2011

Service Length of Vacation 6 months but less than 1 year 5 days 1 year but less than 2 years 11 days 2 years but less than 3 years 12 days 3 years but less than 4 years 13 days 4 years but less than 5 years 14 days 5 years but less than 6 years 15 days 6 years but less than 7 years 16 days 7 years but less than 8 years 17 days 8 years but less than 9 years 18 days 9 years but less than 10 years 19 days 1 0 years but less than 20 years 20 days 20 years or more 25 days

30

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For vacation purposes, years of service is determined by the number of years the employee has on July 1st of each year.

16.02 Vacations are scheduled and approved by the company. The scheduling of vacations will be based on the necessity of maintaining an efficient operation. Every effort will be made to grant the employee's request based on the needs of production and on a "first come first served" basis.

16.03 If the company schedules a vacation shutdown period during the summer months the company will announce the schedule at least four (4) weeks in advance. Employees not required to take vacation during that period will be considered on the basis of seniority and the employee's ability to perform the work.

16.04 All employees must use their entire annual vacation allotment. ·

16.05 Vacation requests must be made on a Vacation Request form and approved by the Supervisor or Manager. Vacation requests will be restricted to a ten (1 0) percent maximum in each department at any one time.

Final vacation requests must be submitted before April 1" of the vacation year. Vacation schedules will be finalized by April 15'" each year.

16.06 Vacation pay will be paid as the employee uses annual vacation time.

31

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16.07 Employees who become disabled due to injury or illness while on vacation, may request the rescheduling of any remaining vacation after the employee reports and provides satisfactory medical evidence of the disability.

16.08 In cases of emergencies, employees may require time off work and may request vacation without meeting the vacation notice requirements. The decision to grant emergency vacation days will be at the discretion of the Production Manager or designate. Approval must be obtained in advance.

ARTICL[: 17- HOURS OF WORK

17.01 The normal work week shall consist of forty (40) hours, made up of five (5) consecutive eight (8) hour days, Monday to Friday inclusive. Normal production shifts will commence after 10:00 p.m. on Sunday.

Employees are allowed to make up late time as a result of car breakdowns, traffic, weather or family emergencies up to two (2) hours per occurrence to a maximum of ten (1 0) hours per year. Such time must be made up within forty-eight (48) hours and must be approved by your supervisor.

Hours of work on a three-shift operation will typically be as follows:

Day Shift­Afternoon Shift -Night Shift-

6:30a.m. - 2:30p.m. 2:30 p.m. - 10:30 p.m.

10:30 p.m. - 6:30 a.m.

32

·,.:··

"

Hours of work on a two-shift operation will typically be as follows:

Day Shift­Afternoon Shift-

6:30a.m. - 2:30p.m. 2:30 p.m. - 10:30 p.m.

Hours of work on a single shift operation will typically be as follows:

Day Shift- 6:30 a.m. - 3:00 p.m.

Employees are responsible to clock (swipe) in and out of the facility to document their hours of work.

Requests for a temporary shift switch will be submitted to the Supervisor on the required "Shift Switch" form and must be approved by the shift supervisor, twenty-four (24) hours in advance of the switch.

When two (2) employees from the same department and are able to perform the respective jobs, agree to switch shifts, the Company will not unreasonably deny the request. The employees involved will ensure the arrangement was mutually agreed upon and considered seniority. If such agreements are subsequently cancelled the employee(s) involved will revert back to their normal shifts.

17.02 In the event it becomes necessary for the Company to change the starting and stopping times of the normal shifts, or establish new shifts, the Company will provide the Union (in writing) a minimum of two (2) weeks notice. (See Letter of Understanding on staggered shifts.)

33

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17.03 This statement of the normal hours of work shall not be construed as a guarantee of any minimums or as a restriction of any maximum number of hours of work per week, except as otherwise provided in this Collective Agreement.

(a) In a single shift operation, there shall be one (1) paid twenty (20) minute rest period in each shift and a thirty (30) minute unpaid lunch period approximately midway through the shift. There is one (1) five (5) minute wash-up period before lunch and another at the end of the "shift.

(b) In two-shift or three-shift operations, there shall be one (1) twenty (20) minute paid rest period in each shift, and a thirty (30) minute paid lunch period approximately midway through the shift. There is one (1) five (5) minute wash-up period before lunch and another at the end of the shift.

(c) If an employee is required to work more than a half hour beyond their scheduled shift, there will be another ten (10) minute paid break.

Assigned lunch times and break times may be adjusted to support customer schedules or productivity as required.

17.04 Employees may apply (in writing) during the months of April or October to request a shift change. Shift assignments will be based on plant seniority.

34

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17.05 Shift Premiums

Employees will be paid shift premium as follows:

Second Shift $0.45 I hour worked Third Shift $0.50 /hour worked

Shift premiums will be paid based on your normal complete shift that day.

ARTICLE 18 ·OVERTIME

18. 01 For the purpose of computing pay as provided in this Agreement an employee will be compensated on the basis of each workday. Each workday will be a complete unit and will stand on its own. Overtime rates of pay will not be pyramided. Premium rates of pay will not be pyramided. Straight time will be paid for the first eight hours worked in any workday, Monday through Friday except as otherwise provided for in this Agreement.

(a) Time and one-half will be paid for:

(i) All hours worked over eight (8) in the employee's workday except as in (iii).

(ii) All hours worked on Saturday, as established by the employee's workday.

(iii) All hours worked in excess of eight (8) hours when an employee through no fault of the Company fails to work his eight (8) hour shift and then is called in for additional work during his workday. He will be paid straight time for such work until he has worked a total of eight (8) hours in his workday.

35

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(b) Double time will be paid for:

(i) All hours worked on Sunday, as established by the employee's workday.

(ii) All hours worked on a holiday as recognized by this Agreement.

18.02 Work performed on any Paid Holiday listed in Clause 15.01 of the Collective Agreement will be paid for at the rate of two (2) times the base hourly rate, in addition to pay for the Paid Holiday as outlined in Clause 15.04.

18.03 Overtime premiums shall not be paid more than once for any hours worked, and there shall be no pyramiding of overtime.

18.04 Shift premiums shall not be included in the calculation of overtime compensation.

18.05 (a) The Company shall endeavour to distribute overtime equally amongst qualified (signed off) employees currently performing the work within the department and on the shift for which the overtime is required. Overtime will be scheduled as follows:

1. Overtime signup sheets will be posted on the bulletin board for employees to sign and volunteer for available overtime on the first workday each week.

2. Employees must sign for voluntary overtime by 10:30 p.m. on Tuesday

36

3. Voluntary lists will be completed and posted by noon on Wednesday. Employees wishing to remove their name from the list must do so by Wednesday at 10:30 p.m.

4. Final overtime lists will be posted by Thursday at 10:00 p.m.

5. Overtime hours lists will be updated, sorted and posted every Monday, unless Monday is a recognized holiday. Overtime hours will be zeroed out annually, on January 1 ' 1 of each year for purposes of equalization.

6. Seniority will be used when the overtime hours are zero, thereafter the overtime will be offered first to the employee with the lowest overtime hours.

7. Employees on a modified work plan will not be eligible for overtime unless authorized by their doctor and/or until they have returned to full regular duties for at least one full shift prior to the overtime being worked. These employees will be charged with all hours they would have been charged with, had they been eligible to work.

8. If an employee doesn't work available overtime, he shall, for record purposes, be deemed to have worked the number of hours he should have worked had the overtime been accepted. If an employee accepts overtime, those hours will be considered a normal scheduled hours.

37

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9. For the purpose of allotting overtime the following shall apply:

Employees normally performing the work who have the lowest overtime hours recorded will be the first to qualify. Employees who are trained and signed off on the operation for which the overtime is being asked, who have the lowest overtime hours recorded will be next.

Overtime hours will be recorded and charged as follows:

i. All overtime hours, worked, refused or charged, will be recorded on the basis of hours paid (i.e. 8 hours at time and one­half, posted as 12 hours; 8 hours at double time, posted as 16 hours).

ii. An employee who refuses the overtime work will be charged with the pay hours available based on a maximum of eight (8) work hours.

iii. Daily emergency overtime will be offered to the employee on the shift which precedes the overtime hours. Emergency overtime is defined as less than eight (8) hours notice of overtime availability.

38

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iv. Employees absent, except for employees on bereavement, will be charged the overtime hours they would have been offered to work if they were not absent. Employees on vacation are responsible for contacting their supervisors by Wednesday at 11:00 a.m. to ask if there is opportunity to work weekend overtime.

v. An employee who refuses overtime offered will not be charged if the overtime offered is in a department other than his own.

b) During inventories, statutory holidays, and plant shutdowns, seniority will take precedence over low hours.

c) Machine Allocation preference for overtime shifts will be determined by the employees working the greater number of overtime hours. Example: If a senior employee is working four hours and a junior employee is working five hours, the junior employee will have preference, then by department seniority and then plant seniority.

18.06 Overtime shall be voluntary, except where it is necessary to schedule production of a department(s) to meet our customer requirements.

In such situations the Company agrees to meet with the Plant Committee to discuss such overtime assignment and the necessity to have the overtime

· worked. The Company will give as much advanced notice as possible.

39

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This overtime will be assigned to the qualified employees with the lowest accumulated overtime hours, in the affected department, providing the employee has been trained to do the job. In the event that employees have equal accumulated overtime hours, seniority shall govern and the junior employee will be assigned.

This overtime shall not exceed forty-eight (48) hours in a normal week and will not be scheduled more than twice in one calendar month for any one individuaL Voluntary overtime that has been accepted and worked is included in the calculation of the forty-eight (48) hour work maximum.

All compensation for assigned overtime will follow the usual overtime compensation guideline

ARTICLE 19- REPORTING-IN PAY

19.01 Any employee who has not been notified in advance "not to report for work,'' and who reports for his regular scheduled shift, will be given at least four (4) hours work. If no work is available, he will be paid for a minimum of four (4) hours at his base hourly rate.

19.02 The obligation of the Company will not prevail:

(1) If no work is available because of:

(a) A power shortage or a failure of power supply beyond the control of the company.

40

--··-------·

(b) A fire or Act of God

(2) If the employee has not kept the Company informed of his current address and a telephone number.

ARTICLE 20- EMERGENCY CALL-BACK PAY

20.01 An employee who has completed his full daily shift, and has left the plant property, and is called back to perform additional or emergency work, will be paid for the time actually worked or a minimum of four (4) hours pay at the applicable rate, which ever is greater. This article is not applicable to overtime scheduled before or after a shift.

If the work for which the employee is called in to perform has been completed, the employee is allowed to leave the plant.

ARTICLE 21 -SICK LEAVE OF ABSENCE

21.01 Employees who are permitted to go home due to non­occupational illness or injury will not be paid for the remainder of their shift.

21.02 Employees who are absent must call in each day prior to their regularly scheduled shift until they provide satisfactory medical evidence of their continuing absence.

41

21.03 Any employee's reinstatement after sick leave is conditional on his supplying a certificate from a physician that he is able to return to work.

21.04 When such an employee returns to work, he shall be reinstated to his former classification, and shift (if possible) under the seniority provisions of the Collective Agreement. In the event of a dispute between two physicians concerning a short term disability claim the validity of a non-occupational illness or injury, the Company and Union will select a third party physician, and his opinion wiii be binding on the parties. The third party physician will rule if the employee can return to work, return work with restrictions, or cannot return to work.

21.05 The Company will not pay for physicians fees for completion of the initial El or Insurance carrier medical forms. Any additional medical evidence after the first submission, being requested by the Company or the Carrier, will be paid by the Company, provided that the initial claim form has been completed as required. If the employee cannot meet the return to work date as indicated on the disability form, any request for additional medical evidence will be paid by the employee.

42

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ARTICLE 22- PERSONAL LEAVE OF ABSENCE

22.01 A personal leave of absence, without pay, for a valid reason, acceptable to the company, may be granted for a period not to exceed one (1) calendar month, and such application is made to the Plant Manager, or his representative, at least five (5) days prior or as soon as possible to the leave of absence, in writing, and written approval is obtained from the Human Resource Manager, or his representative. The Company agrees to consider all requests under this Article, for all employees, in a fair and equitable manner. The company may extend the leave of absence. Leaves extended beyond one hundred and eighty (180) days will be mutually agreed by the company and the union.

22.02 When such an employee returns to work he shall be reinstated to his former classification under the seniority provisions of the Collective Agreement.

22.03 An employee who has seniority and is appointed or elected to Public Office will be granted unpaid leave of absence and without benefit and pension coverage, covering the term of office. The request must be in writing and submitted to the company at least two (2) weeks prior to the commencement of the term. The leave will be extended for the period covering the first re-election term. The employee will provide the Company with two (2) weeks' notice of their intent to return to work. The employee shall be returned to work consistent with his seniority.

43

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ARTICLE 23- LEAVE FOR UNION BUSINESS

23.01 An employee elected or nominated by the Union to attend Union Conventions or Meetings may be granted a leave of absence, without pay, for a period not to exceed up to fifteen (15) working days (unless mutually agreed to an extension), and the Human Resource Manager is given a minimum of five (5) working days' notice, in writing, of such absence, and not more than three (3) employees shall be granted such leave of absence at any one time.

ARTICLE 24- BEREAVEMENT LEAVE OF ABSENCE

24.01 When a death occurs in the immediate family of an employee (parents, current spouse's parents, current spouse, children, step-children, brother or sister), the employee shall be allowed up to five (5) days off with regular straight time pay at the time of bereavement. The Company will grant to an employee who suffers a death in his/her family, (step-parents, grandparents, grandchildren, step-brothers, step-sisters, half­brothers, half-sisters, son's current spouse, daughter's current spouse, current spouse's step-parents, current spouse's grandparents, great grandparents, brother­in-law, sister-in-law) a leave of absence with full pay for three (3) working days following the death.

24.02 The employee will notify his immediate supervisor or Human Resources as required in the event of a bereavement leave approval is required.

44

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24.03 Such paid bereavement leave as described in Clause 24.01 is only available where the employee would otherwise be at work during this period (excluding Saturdays, Sundays, vacations and holidays) surrounding the date of the funeral.

24.04 If bereavement occurs during a vacation period the employee may extend the vacation by the number of bereavement days. If a Holiday falls during the bereavement leave the bereavement leave will be extended.

24.05 The Company may request proof of death.

ARTICLE 25- JURY/CORONER DUTY

25.01 An employee who is called for Jury/Coroner service or is subpoenaed to court as a witness shall be excused from work for the days on which he serves and he shall receive, for each such day of jury/coroner service duty or witness duty on which he, otherwise, would have worked, the difference between eight (8) times his base hourly rate and the payment he receives for Jury/Coroner service duty or witness duty. In order to receive payment, an employee must give management prior notice that he has been summoned and present proof of service and the amount of Jury/Coroner service duty fee paid by the court or witness fee.

If an employee is on jury duty during the vacation period recognized holiday, he/she will be entitled to re-schedule his/her vacation or recognized holiday.

45

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This also applies to an employee who is working afternoons or midnights who has reported to jury duty during the off shift. Such employee will be granted the day off with pay the shift prior to or shift following to the day he reports for to the court.

ARTICLE 26- APPRENTICES

Apprentices in each of the trades covered shall be paid a progressively increasing schedule of wage as follows:

1" 1000 hours not less than 65% of the Journ.eyperson rate 2'' 1000 hours not less than 70% of the Journeyperson rate 3"' 1000 hours not less than 75% of the Journeyperson rate 41h 1000 hours not less than 80% of the Journeyperson rate 5'" 1000 hours not less than 85% of the Journeyperson rate 6'h 1000 hours not less than 90% of the Journeyperson rate 7'" 1000 hours not less than 95% of the Journeyperson rate 8'" 1000 hours not less than 98% of the Journeyperson rate

An employee with seniority rights who enters the apprenticeship program will remain at his/her current hourly rate until such time as the percentage(%) of the Journeyperson rate is greater of the two and will continue to progressively increase as per·the above chart. A new hire placed directly into an apprenticeship will begin at 65% of the Journeyperson rate and progress according to the apprentice wage schedule.

Employees who complete their apprenticeship will have twelve (12) months to obtain their journeyperson card by completing the Provincial or applicable test or exam. This time may be extended by mutual agreement between the company and the union.

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ARTICLE 27- BULLETIN BOARDS

27 The Company will provide a lockable centrally located bulletin board for the convenience of the Union in posting notices of Union meetings and Union business. All such notices must be signed by the proper officer of the Union and submitted to the Plant Manager or Human Resources Manager for approval before being posted.

47

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LETTER OF UNDERSTANDING #1- ABLE TO PERFORM

January 22, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: ABLE TO PERFORM

During our recent negotiations the parties discussed employees performing the duties of a job. Able to perform is interpreted to mean the employee's ability to perform the duties of his/her position after proper training and trial period. Normal performance would include the employee's physical ability to meet standards of production, quality and quantity generally accepted as adequate for employees in the same or other like jobs.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

48

LETTER OF UNDERSTANDING #2- ACCOMMODATED WORK

February 26, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: ACCOMMODATED WORK

From our recent negotiations, this letter confirms our agreement that the Company will continue to develop our return to work and modified work programs in conjunction with our Local Union Committee.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

49

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LEITER OF UNDERSTANDING #3- COOLING OFF PERIOD

February 18, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: COOLING OFF PERIOD

During our 2008 negotiations the union expressed concern regarding an employee who may quit in a hasty manner and later regret the decision.

The company agreed that in the event that an employee quits in haste or under duress, without a letter of resignation, there shall be a forty-eight (48) hour cooling off period before the release will be processed. This does not preclude the company from enacting disciplinary procedures. Should the employee rescind the quit, a meeting must be held with the Human Resource Manager, a committeeperson and the employee before the return to work.

The cooling off period will not be allowed more than once for any employee.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

50

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LETTER OF UNDERSTANDING #4- EMPLOYEE ASSISTANCE

January 21, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: EMPLOYEE ASSISTANCE

During our 2008 negotiations the company and union discussed at length the issues of potential substance abuse in our facility and the resulting effect on our people, their families, their fellow employees, the productivity of our plant and the resulting negative impact.

The Company recognizes the importance of a continuous co-operative effort between management, Union representatives and our employees in this regard.

The company agreed to work with the CAW to recognize an Employees Assistance Representative, appointed by the union. This individual would have specific knowledge and training in dealing with people who suffer from substance abuse.

The parties understand that information obtained by this representative must be treated in a confidential manner and can only be shared with the Human Resources Manager.

51

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The company understands that the representative may from time to time, require with pay time off the job and/or away from work in order to assist employees. Should this occur the employee would be paid the balance of a shift (maximum eight (8) hours).

The parties agree that these efforts will help provide our people with an easy and convenient opportunity to access the assistance they may require, which is a critical step in any recovery process. Employees who are under physician prescribed care may be eligible for STD or LTD. during the treatment period.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #5- HEALTH, SAFETY AND ENVIRONMENT

February 19, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: HEALTH, SAFETY AND ENVIRONMENT

During our recent negotiations the parties discussed the issues of Health and Safety process in the facility. The following processes will be followed.

Company Duties

The company shall institute and maintain precautions to provide every worker a safe and healthy workplace. The Company will make every effort to comply in a timely manner with all applicable legislation pertaining to Occupational Health and Safety. All standards established under these laws must constitute the minimum acceptable practice, which

. the parties will strive to improve upon by agreement of the members of the Joint Health, Safety and Environment Committee.

53

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Joint Health. Safety and Environment Committee

A Joint Health, Safety and Environment Committee shall be established which is composed of a minimum of four (4) union members chosen by the union and an equal number of company members.

Two co-chairpersons shall be members of the committee. One co-chair shall be a union member selected by the union the other shall be a company member.

Without limiting the generality of the foregoing, t.he committee shall:

Determine that inspections have been carried out at least once a month by the co-chairs, accompanied by the appropriate members of the Joint health and Safety Committee. These inspections shall be made of all places of employment, including buildings, structures, grounds, excavations, tools, equipment, machinery and work methods and practices including ergonomic assessments.

Recommend measures required to attain compliance with appropriate government regulations and the correction of hazardous conditions.

Consider recommendations from the workforce with respect to health and safety matters and recommend implementation where warranted in conjunction with OHSAS 18001 regulations.

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54

Hold JHSC meetings at least once a month and include the review of reports of current accidents, occupational diseases and sprain and strain injuries, their causes and means of prevention; remedial action taken or required by the reports of investigations or inspections, and any other matters pertaining to health and safety.

Record the minutes of the meetings, which shall be signed by the co-chairs, distributed to the committee members, posted on the bulletin boards and sent to the plant manager, local union and national union representative.

Have access to and promptly receive copies of all reports, records and documents in the company's possession or obtainable by the company pertaining to health or safety.

All new equipment must be inspected by a union certified member designated by the union along with the company certified member and this equipment must be signed off by a certified member before production is started.

Time spent by members of the committee in the course of their duties shall be considered as time worked and shall be paid in accordance with the terms of this agreement.

Right to Refuse

The company shall ensure that all employees are informed that they have the right to refuse hazardous work which may harm them or any person and that signs are posted in the workplace advising them of this right.

When a worker exercises his or her right to refuse, he or she shall notify the supervisor who shall promptly notify the union co-chair or designate and the company designated member

55

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who shall participate in all stages of the investigation. The worker shall stand by at a safe place and participate fully in the investigation of the hazard as required and then may be reassigned.

The company shall ensure that no other worker is asked or permitted to perform the work of the worker who refused unless the second worker is advised of the reasons for.the work refusal in presence of the co-chair and refusing worker.

If the union co-chair and the supervisor cannot agree on a remedy to the work refusal, the government inspector shall be called in.

Accident and Incident Inspections

Every injury or near-miss which involved or would have involved a worker going to a doctor or hospital must be investigated. The co-chairs or designate shall investigate the accident or incident.

Education and Training

No employee shall be required or allowed to work. on any job or operate any piece of equipment until he/she has received proper education, training and instruction.

All members of the Joint Health Safety and Environment Committee will be trained as Certified Members although only one may function at any given time. The Union will determine who will be recognized as the union Certified Member.

56

Ongoing training of employees in safety and ergonomics issues will be discussed by the parties and the company will consider using the resources of the National Union and internal trainers to update the knowledge of the employees.

Disclosure of Information

The Company will continue to disclose the identity of all known physical agents, toxic materials or other hazardous substances to which workers are exposed prior to the material entering the plant.

Any pertinent information such as symptoms, medical remedies, antidotes, required protective equipment, storage hazards etc., will be made available to the Committee.

WHMIS training will continue to be done annually.

Right to Accompany Inspectors

The union co-chairperson or designate shall be allowed to accompany a government inspector on an inspection tour and to speak with the inspector out of earshot of any other person.

Right to Accompany National Union Health and Safety Representative

The union co-chairperson will accompany the National Union Health and Safety Representative(s), who, with prior advance notice, will have access to the plant and locations where members of the union are employed, for the purposes of making safety and health inspections. The Company Safety Director or his/her designate will also accompany them while on Company premises.

57

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Protective Clothing and Equipment

The company shall provide all employees whose work requires them to wear protective devices with the necessary tools, equipment and protective clothing recommended by the committee, including safety footwear (for replacement costs of this item see other section of the agreement) and safety glasses (prescription, if necessary initially supplied by the Company and up dated for prescription changes). These shall be maintained and replaced as necessary. The conditions necessitating their use shall be subjected to further corrective measures through engineering changes or the elimination of the hazard. ..

Lockout and Machine Guarding

The company shall ensure that all equipment is locked out and guarded. The JHSC shall develop lockout and test procedure and machinery guarding program. All employees who may be at risk will receive training specific to their job.

First Aid Attendants

There shall be first aid attendants present on all shifts.

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Injured Workers Provisions

An employee who is injured during working hours and who is required to leave for treatment or is sent home as a result of such injury shall receive payment for the rest of the shift at his/her regular rate of pay. Such employee shall be provided with transportation for medical treatment and then to his/her home.

No Working Alone

No employee shall be required or permitted to work alone in the building.

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LETTER OF UNDERSTANDING #6- HOLIDAY PAY QUALIFICATION

December 14, 2007

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: HOLIDAY PAY QUALIFICATIONS

During our 2007 negotiations, we discussed the intent of Clause 15.02. It was agreed that there may be circumstances which prevent an employee from being at work the day immediately preceding and immediately following a holiday in order to qualify for holiday pay. When such circumstances occur, consideration will be given to qualify the employee for holiday pay providing the reason for his/her absence is presented to the Human Resources Manager. The Company will be reasonable in consideration where employees may be late on these days as a result of traffic, weather or vehicle problems where the employee reports to work as soon as is reasonably expected caused by these potential delays. Certainly anyone who has an emergency leave will qualify for the Ho.liday providing proof for the emergency is provided as per the Act.

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The Company and the Union agree that the intent of this procedure is to recognize an employee who has a bona fide absence or is excused immediately preceding or following a holiday.

Yours truly

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LEITER OF UNDERSTANDING #7- JOB ROTATION December 14, 2007

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: JOB ROTATION

During the negotiations the Company and Union discussed and agreed on the practice of job rotation. The Company has committed to the ongoing practice of job rotation to maintain flexibility, to reduce the repetitive nature of some jobs and to broaden the job content of assignments.

Job rotation will be continued within each department of the Plant in a manner that will ensure maximum safety, quality, productivity and job enrichment The rotation sequence and timing may vary by and within departments to accommodate mutually acceptable requests of employees and management. Job rotation will occur in every production area unless an unusual circumstance prevents the rotation. If there is a requirement to limit the rotation, the circumstances will be discussed with the Committee.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #8- JOINT ANTI­HARASSMENT POLICY

February 18, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: JOINT ANTI-HARASSMENT POLICY

During the current negotiations the parties discussed Human Rights issues in the workplace. The parties have committed to implementing the procedure for the benefit of Dana employees. In addition, the parties agreed to outline the procedure within the context of this Appendix.

Dana Canada Corporation and the CAW are committed to providing a harassment free workplace. Providing fair and equitable treatment for all employees is best achieved in an environment where all individuals interact with mutual respect for each other's rights.

Workplace Harassment Policy

Every employee has the right to work in an environment free of harassment. The right includes the responsibility to eliminate harassment in our workplace, either as a participant or as an observer.

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The policy and procedure outlines the commitment of Dana and the CAW to ensure a harassment free workplace as required under applicable Human Rights Legislation and will act as a guide to employees in adhering to legal and social guidelines regarding the recognition and prevention of harassment.

This policy exists to underline the seriousness of workplace harassment at Dana. Employees who feel that they are being harassed are encouraged to seek protection under this policy.

Harassment is defined as a "course of vexatious comment or conduct that is known or ought reasonably be known to be unwelcome" that denies individual dignity and respect on the basis of the grounds prohibited by applicable human rights laws. At Dana all employees are expected to treat others with courtesy and consideration and to discourage harassment on company premises.

Workplace harassment includes but is not limited to the following examples:

• Unwelcome remarks, jokes, innuendoes or taunting about another's body, attire, gender, disability, racial or ethnic background, sexual orientation which cause awkwardness or embarrassment.

• Displaying visuals of a sexual, racial or otherwise offensive nature such as pornographic pictures, posters, cartoons, graffiti, or simulations of body parts.

• Leering (suggestive staring) or other gestures. • Unnecessary physical contact such as touching, patting

or pinching.

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• Unwanted sexual solicitation, physical contact or advances, particularly made with implied reprisals, if rejected.

• Refusing to work or share facility with another employee because of the other's gender, disability, sexual orientation, racial, religious or ethnic background.

• Backlash or retaliation for the lodging of a complaint or participation in an investigation.

Obligation of Employees

Employees are obligated to bring any complaint of harassment to the attention of the Human Resources Manager for the Company or Committeeperson for the Union as soon as possible. If the Company/Union is not made aware of any issues of harassment, they may be unable to address such issues.

What Harassment is not

Properly discharged supervisory responsibility including disciplinary action or conduct that does not interfere with a climate of understanding and respect for dignity and worth of Dana employees are not considered harassment. Neither is this policy meant to inhibit free speech or interfere with normal social relations that are a part of life in Dana.

Filing a Complaint

If an employee believes that he/she has been harassed on the basis of any of the grounds stated above, that employees should:

• Tell the alleged harasser to stop.

65

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• Document the event(s) complete with the time, date, location, names of the witnesses and details of each event, if possible.

• If the harassed employee does not feel able to approach the alleged harasser(s) directly, or if after being told to stop the alleged harasser continues the harassed employee should lodge a complaint either directly or through a person on his/her behalf with any company or union representative.

Investigation

In minor cases, the company and the union agree that the union and the company may try to resolve a harassment complaint informally using the Internal Procedure without a full investigation when so requested by the complainant. All cases of harassment will be handled by the Human · Resource Manager for the Company or Committeeperson for the union. The outcome of this attempted resolution will be communicated to both the union and the company. If the complainant disagrees with the attempted resolution or if the complaint involves more than minor issues there will be a joint investigation of the complaint according to established methods. Once informed of a complaint requiring joint investigation, the appropriate representative will immediately inform his/her counterpart and together these two (2) will conduct a thorough investigation according to the established methods. Where the complainant is a woman and the complaint involves sexual harassment or gender discrimination, the joint investigation team will include at least one (1) woman.

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The joint investigation will include an interview of the complainant and may include interviewing the alleged harasser, witnesses and other persons named in the complaint. It is the intention of the union and the company that, in most cases, the investigation will take place within five (5) days and shall be concluded within fifteen (15) days of the lodging of the complaint. An extension to the time limits may be granted by mutual agreement.

The interviewing time and location will recognize the need to maintain confidentiality. The identity of the complainant, the alleged harasser(s) and the nature of the complaint will be kept confidential and only the persons with a need to know will be informed of the complaint. Records of the investigation, including interviews, evidence and recommendations will be securely maintained in the offices of the respective representatives.

Resolution

Upon completion of their joint investigation, the investigators will present their report to the Manager, Industrial Relations and the CAW National Representative. The company agrees that ten (1 0) days after receiving the joint investigation report the harassment complaint will be resolved.

The purpose of this Policy and Procedure is to allow the CAW and Dana Canada Corporation the opportunity to address and resolve internal problems related to the objective of achieving a harassment free workplace. This Policy in no way precludes the complainant's right to seek action under the applicable Human Rights Legislation.

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Training

The parties also agree to communicate this Policy to all Dana employees at the location, through a jointly developed and delivered training program within one (1) year following ratification of this agreement.

• Such training will be mandatory for all employees working at the location.

• The duration of the training will be three (3) hours. • The training will be conducted during normal working

hours. ·

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #9- PAID EDUCATION LEAVE (PEL)

February 25, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: PAID EDUCATION LEAVE (PEL)

The Company agrees to pay into a special fund three (3) cents per hour per employee for all compensated hours, for the purpose of providing paid education leave. Said paid education leave will be for the purpose of upgrading the employee's skills in all aspects of the Trade Union functions. Such monies will be paid on a quarterly basis into a trust fund established by the National Union, CAW and sent by the Company to the CAW Leadership Training Fund, 205 Placer Court, North York, Ontario, M2H 3H9.

The Company further agrees that the members of the Bargaining Unit, selected by the union to attend such courses, will be granted a leave of absence without pay for twenty (20) days' class time, plus travel time where necessary. Said leave of absence is to be intermittent over a twelve (12) month period from the first day of the leave.

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The Company further agrees to supply the Union with the following information when each contribution is sent to the Paid Education Leave Program, the Local Union number, the Bargaining Unit covered, the number of employees, the number of hours used in the calculation and the period of time covered.

Seniority shall accumulate during the period of an approved leave of absence and a copy of the written leave will be furnished to the employee and the Plant Committee Chairperson.

After the leave of absence an employee will be placed in his/her former job if it still exists or his/her former classification, seniority permitting.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #10- SKILLED TRADES

February 26, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: SKILLED TRADES

During the recent negotiations the parties discussed the differences between Skilled Trades and Production Job Classifications.

As a result the parties agreed to continue discussion in greater detail during the term of the Collective Agreement. Such discussions will focus on but not be limited to the CAW Skilled Trades Program and Apprenticeship Training.

In addition the Company agreed to deduct CAW Skilled Trades dues upon request.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #11 -SKILLED TRADES TOOL REPLACEMENT '

February 26, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: SKILLED TRADES TOOL REPLACEMENT

During our recent negotiations discussions the Company agreed to continue the practice of the replacement of tools for skilled trades that become broken while in the course of employment so long as the said tool can be presented to the Company.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #12- SUMMER STUDENTS

January 7, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: SUMMER STUDENTS

During our recent negotiations the parties discussed the use and hiring of summer students to fill in and augment the workforce during the summer vacation period. The parties therefore agree to the following terms and conditions respecting the hiring of students.

• The use and hiring of summer students is restricted to the period of April 15 through to September 15 each year.

• The use or hiring of students will not be permitted while regular bargaining unit employees are on layoff

• Children of Dana employees will be considered first for any of the student positions

• Students will not be entitled to employee benefits

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• Students will not be offered overtime until all regular employees have been offered the hours available

• Students will not be placed in open positions on preferred shifts until such positions are offered to regular employees on the off shifts, except for training purposes

• Students hired on Dana payroll will be paid at the applicable starting rate at the plant.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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i LETTER OF UNDERSTANDING #13- TEMPORARY WORKERS

February 25, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: TEMPORARY WORKERS

During our 2008 negotiations the parties discussed the use of temporary workers (excluding students) in the Oakville XL Plant, Brantford Plant and Mount Forest Plant. The parties agreed that temporary workers in the facility are excluded from the Bargaining Unit and their pay and working oonditions are determined solely by the company.

The parties recognize that a limited number of temporaries working in traditional Bargaining Unit jobs may be required to meet short-term customer demands and peaks in schedules.

The parties have agreed that the following rules will apply to the use of temporary workers:

• There shall be a maximum of ten (1 0) percent temporary workers (excluding students). This can be increase by mutual agreement of the parties.

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• Temporary employees may work for a maximum period of ninety (90) days and must then either be hired or terminated unless extended by mutual agreement. • There shall be no use of temporary workers while there are employees laid off from that classification. • Temporary workers shall not be eligible for overtime

until all full-time employees have been asked and exhausted.

• Temporary workers shall not be assigned to the day shift except for training purposes.

The company will inform the Union prior to the use of temporary workers and provide the details and reason for the use of these workers.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #14- WOMEN ADVOCATE

January 21, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: WOMEN ADVOCATE

During the 2008 negotiations, the parties discussed some of the special issues that face women in the workplace. As well the parties recognize and share the concern that women uniquely face situations of violence or abuse in their personal lives that may afFect their attendance or performance at work. The parties agree that when there is adequate verification from a recognized professional (i.e. doctor, lawyer, professional counselor) a woman who is in an abusive or violent personal or domestic relationship will not be subjected to discipline without giving full consideration to the facts in the case of each individual and the circumstances surrounding the incident otherwise supportive of discipline. This statement of intent is subject to a standard of good faith on the part of the Company, the Union, and the effected employees to subvert the application of otherwise appropriate disciplinary measures.

The Company agrees to recognize a women's advocate appointed by the union.

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The role of the advocate is to:

• Take P.art in the investigation along with management in harassment issues involving women in the workplace

• Take part in an investigation in support of women employees regarding harassment issues outside the workplace.

• To be knowledgeable and helpful in locating community resources such as counselors or shelters to assist those in need.

• To identify and make recommendations to the employer in regard to barriers which may have an adverse afFect on female employees.

The women's advocate will participate in the annual five (5) day training program sponsored by the CAW-Canada at no cost to the company.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #15- NO TRANSFER OF WORK BETWEEN PLANTS

March 18, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: NO TRANSFER OF WORK BETWEEN PLANTS

During our 2008 negotiations Dana Canada Corporation and the CAW held lengthy discussions regarding the future of the facilities (Brantford, Mount Forest, Oakville XL) represented by the CAW.

· As Dana Corporation emerges from Chapter 11 protection, the company will continue to evolve and will be focused directly on profitability, productivity, customer service and new and innovative products and processes.

Over the past couple of years Dana has spent considerable time and effort in maximizing and optimizing the manufacturing footprint in North America which resulted in numerous announced plant closings, product rationalization and business realignment.

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Specifically, we discussed the performance and future of Brantford, Oakville XL and Mount Forest. Certainly the people in these plants have performed very well. The plants have had good productivity and customer service. All have shown a keen effort in maintaining good quality records and participating in continuous improvement efforts. While Brantford has lost some of the Heavy Duty business as a result of the product rationalization efforts, this should not be taken as a refiection on the efforts of the Brantford people.

It is Dana Canada's plan to continue to develop these plants, the people and the technology in these plants that will aid in securing their future competitiveness in the market place. We all agree that this is key to securing the future of the plant and thus the people that work there.

The company commits that there are no current plans to transfer the business in any of these plants to another Dana Plant. It is the desire of the company to grow these operations when opportunity presents it self.

To that end the Company will not transfer existing work out of the Brantford, Mount Forest or Oakville XL plant where the CAW represents employees into a Dana plant where they do not, save and except the previously announced moving of "heavy duty" work to Lima from Brantford, unless it is specifically directed by a customer. This agreement is in force until February 1, 2011. For greater clarity, should a customer make a sourcing decisi'on under an existing contract, end a sourcing contract, or does not renew a sourcing contract the Company will not be required to comply with the terms as set out in this paragraph.

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Where a transfer to another facility of a particular part of a business may be reasonably required for the support of a customer program or to support a customer program the parties will meet to discuss the situation and potential affect on the plant.

The company commits to have quarterly business updates of the business plans with the Local Union and the National Union. These updates will focus on the short and long term prospects for the facility, the status of the present business, potential business changes that may effect the employment and any new business opportunities that may be available.

The company commits to having meaningful discussions with the Union in the event that present business is threatened, whether that is through uncontrollable customer decisions and direction, pricing pressures, productivity issues, quality issues or internal Dana concerns. Should the potential for a negative impact on the facility be for seen, the discussions will include opportunities for both parties to freely participate in finding solutions to any issue with the goal of maintaining the business and employment in the facility. The company commits to providing ample time for these discussions, with a minimum of ninety (90) days prior to any major effect on the facility, if it is under the company's control.

The union has committed to full participation and a willingness to discuss any and all potential solutions to the business matters.

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Should a new business opportunity present itself the company commits to holding timely discussions with the union (which may be confidential) with regards to obtaining that new or replacement business for the facility. The union agreed to support these efforts by considering opportunities for better asset utilization and productivity. The company commits to make reasonable and necessary capital expenditures designed to maintain and expand the work performed.

Should there be a potential business loss the company is committed to the same discussions.

In the event of a major permanent reduction in the workforce is required the company agrees that prior to implementing planned layoffs it shall review and discuss with the local union committee the details of situation. The company will provide:

• Any relevant information that clearly relates to the business need for a permanent reduction,

• The anticipated impact on the facility and people.

The company and union will discuss appropriate adjustments to minimize the effect on the people, which may include the reduction in the use of outside contractors, reduction in overtime and voluntary layoffs.

Sincerely

Paul Teeple Manager, Industrial Relations Europe and Canada

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LETTER OF UNDERSTANDING #301 -CHANGING START TIME HOURS

January 22, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: CHANGING START TIME HOURS

During our recent negotiations we discussed the issue of having the flexibility within the Collective Agreement to improve our efficiency through staggered start times in specific instances.

Specifically we have agreed to begin a program to implement "Relief' positions on the balancers. This will include extending the starting time from 6:00 a.m. to 8:00 a.m. on days, 2:00 p.m. to 4:00 p.m. on afternoons and 10:00 p.m. to 12:00 a.m. on the midnight shift. These positions will be filled through the Job Posting procedure.

It is our intention to continue to look for these opportunities and will commit to the following in respect to these changes:

1. We will have detailed and meaningful discussions with the local committee thirty (30) days prior to the implementation of these.

83

2. These positions will be offered through the Job Posting procedure.

3. We will trial any of these processes for a minimum of thirty (30) days.

4. Other such changes will require mutual agreement between the c·ompany and the Union before being implemented.

Yours truly

C.T. Shatley Human Resources Business Partner Dana Canada Corporation Brentford Drive Shaft Plant

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LETTER OF UNDERSTANDING #302- HEALTH CLUB SUPPORT

February 26, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: HEALTH CLUB SUPPORT

From our recent negotiations, this letter confirms our agreement that the Company continues to provide $100.00 annually for any employee to be part of a Health Club. The employee will be required to show proof of the membership, before any reimbursement.

Yours truly

Patricia Spence Plant Manager Dana Canada Corporation Brantford Drive Shaft Plant

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LETTER OF UNDERSTANDING #303- JOB ROTATION

January 22, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: JOB ROTATION

During the negotiations the Company and Union discussed and agreed on the practice of job rotation. The Company has committed to the on going practice of job rotation to maintain flexibility, to reduce the repetitive nature of some jobs and to broaden the job content of assignments.

Job rotation will be continued within each department of the Plant in a manner that will ensure maximum safety, quality, productivity and job enrichment. The rotation sequence and timing may vary by and within departments to accommodate mutually acceptable requests of employees and management. Job rotation will occur in every production area unless an unusual circumstance prevents the rotation. If there is a requirement to limit the rotation, the circumstances will be discussed with the Committee.

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Departments within the Brantford Facility include:

1. Light Duty Balancers (includes Balancers, Paint, Line Set)

2. Light Duty Lines (includes Press and Weld, Sub-up, Straightener, Cardboard/Donuts, Aluminum Cell, Hanger Press, Nibber, Service)

3. Tube Cut 4. Shipping/Receiving 5. Material Handlers (includes Material Handlers and Picker/Packers) 6. Sweeper 7. Heavy Duty (includes Cell1, Cell 2 and Cell 3) 8. Skilled Trades

Yours truly

C. T. Shatley Human Resources Business Partner Dana Canada Corporation Brantford Drive Shaft Plant

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LETTER OF UNDERSTANDING #304- JOB ROTATION IMPLEMENTATION

February 26, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: JOB ROTATION IMPLEMENTATION

In addition to the letter dated January 22, 2008 on Job Rotation, during negotiations the Company and the Union have discussed and agreed that a designated trainer per shift will be required in order to implement the cross training process.

Yours truly

Patricia Spence Plant Manager Dana Canada Corporation Brantford Drive Shaft Plant

-- --·' ····"--

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LETTER OF UNDERSTANDING #305- LABOUR MANAGEMENT MEETINGS

January 22, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: LABOUR MANAGEMENT MEETINGS

From our recent negotiations, this letter confirms our agreement that the CAW Local 397 Committee and the Company will meet in a Labour Management meeting weekly.

This meeting will take place in the plant at a mutually convenient time.

A Committee representative may draft and circulate an agenda in advance of the meeting.

Matters that are filed under the Grievance Procedure will not form a part of this agenda.

Sincerely

C.T. Shatley Human Resources Business Partner Dana Canada Corporation Brantford Drive Shaft Plant

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LETTER OF UNDERSTANDING #306- PLANT SAFETY GLASSES

February 26, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: PLANT SAFETY GLASSES

The Company will provide standard plant safety glasses and side shields where necessary at no cost to an employee on his/her first day of employment and replacement safety glasses at no cost to an employee, due to job related damage and use.

PRESCRIPTION SAFETY GLASSES

All employees working in the Company will be required to wear safety glasses provided by the Company as a condition of employment.

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Prescription safety glasses will be provided to an employee following the completion of his/her probationary period. The cost for prescription safety glasses will be covered at 100% once every twenty-four (24) months, and such eye protection shall be CSA approved. During his/her probationary period the company will not provide prescription glasses but will provide standard plant safety glasses. The Company will replace or repair prescription safety glasses due to job related damage. No coverage will be provided for progressive lenses or tints. Safety glasses must be clear with zero tints.

SAFETY SHOES

All employees will be required to wear Company approved safety shoes or boots as a condition of employment and such foot protection shall be CSA approved. The Company will provide a safety boot allowance of $100 to each employee who purchases certified safety shoes or boots for wear at work. The allowance will only be paid once during each calendar year. You may choose to purchase your own safety footwear and bring the receipt in for reimbursement or a voucher may be obtained from the HR department for the purchase of safety footwear at any Mark's Work Warehouse location in Canada.

Yours truly

Patricia Spence Plant Manager Dana Canada Corporation Brantford Drive Shaft Plant

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LETTER OF UNDERSTANDING #307- SHIFT ROTATION, PRODUCTION DEPARTMENTS

January 23, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: SHIFT ROTATION, PRODUCTION DEPARTMENTS

During the 2008 negotiations, the parties discussed the issue of steady shifts versus shift rotation. The parties discussed the potential effects that the present consistent shifts have on the family life and health of our people and the productivity of our plant The company agreed to consider a proposal by the union to change our present system of steady shifts.

The parties agreed at the discretion of the union, to allow a vote on alternate systems of rotation that would support the production needs of the plant The choice presented would be between the present rotation and one other alternative .

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Systems for potential consideration will be:

• Remain with steady shifts • Three shift rotation, days, afternoons, midnights • Three shift rotation, midnights, afternoon, days • Rotation of days and afternoon and a steady midnight

shift.

Such a vote must be completed by September 15, 2008. The company commits to implementing the agreed to system by the end of October 2008.

The parties also agree, that should a change in shift style be made, to meet and make the required adjustments to the Collective Agreement clauses that may be affected by this potential change.

Sincerely

Paul Teeple Manager Industrial Relations Europe and Canada Dana Canada Corporation

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LETTER OF UNDERSTANDING #308- UNION WORK SPACE

January 8, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: UNION WORK SPACE

From our recent negotiations, this letter confirms our agreement that the Company will provide the Union with a private workspace equipped with a desk, chair, phone, locking file cabinet and a personal computer with Internet access for the use of Plant Committee.

Yours truly

C.T. Shafley Human Resources Business Partner Dana Canada Corporation Brentford Drive Shaft Plant

94

"""' ··-~" '"--~' .:" • .'1 '••• .. -"'""

LETTER OF UNDERSTANDING #309- WORK SHORTAGE DAYS, ARTICLE 11.04

February 26, 2008

Steve Farkas Area Director CAW

Dear Steve

SUBJECT: WORK SHORTAGE DAYS, ARTICLE 11.04

During our recent negotiations we discussed the issue of Article 11.04 Work Shortage and have agreed that the Company will do everything possible to fill all vacancies prior to acting on a layoff.

Yours truly

Patricia Spence Plant Manager Dana Canada Corporation Brantford Drive Shaft Plant

95

-~· APPENDIX I

WAGES

Emolovee WaCJe Rate Increases Year 1 Year2 Year3

23-Mar-08 22-Feb-09 28-Feb-10 Skilled Trades $0.10 $0.15 Production $0.30 $0.10 $0.15 Lead Hands $0.30 $0.10 $0.15

Wage Rates (excluding shift premium) Year 1 Year 2 Year3

23-Mar-08 22-Feb-09 28-Feb-10 Skilled Trades $28.64 $28.74 $28.89 Production $21.39 $21.49 $21.64 Lead Hands $23.51 $23.61 $23.76

A lump sum payable to all employees who are active, as outlined below:

(1) On February 24, 2009, $500, and (2) On February 24, 2010, $500.

APPENDIX 2

BENEFITS

·• .·"': ·-.- The following is a summary of the Insured Benefits Plans

~ -~·

only. The language of the applicable group insurance policies will govern.

96

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,-,.·.- ·~

Eligibility

Active employees hired before February 24, 2008 and new employees hired after February 24, 2008, who have completed the applicable grow in provisions are eligible for the following benefits.

Active employees will continue to be covered by these benefits until retirement or termination. In the event of layoff, these benefit coverages will continue, at Company expense for one (1) month following the calendar month in which the layoff occurs.

Where co ordination of benefits is available for employees, the employee must co ordinate the applicable benefit with that of their spouse or common law spouse.

1. Drug Plan Effective March 28, 2008, the current 90% reimbursement benefit changes to a $5 deductible per prescription benefit

2. Vision Care Effective March 28, 2008: • Annual maximum reimbursement of $190 every 24

months increased to $200 every 24 months. • Current 90% reimbursement increased to 100%.

3. Medical Practitioners • Effective March 28, 2008, reimbursement

increased for active employees from $14 to $17 per visit (massage therapist to $20 per visit) with annual combined maximum reimbursement increased from $258 to $350.

97

4. Semi-private and Private Hospital • Effective March 28, 2008, current 90%

reimbursement increased to 100%. No change to per diem maximum reimbursement of $185 for semi-private and $210 for private hospital coverage.

5. Dental a. Effective March 28, 2008, the following services

from Basic Coverage will be reimbursed at 100% instead of current 80% under Basic: • Examination and Diagnosis. • Tests and Laboratory Examinations. • Radiographs. • Preventive Services. • Space Maintainers (for dependent children

under 19 years of age). • Drug Injections. • Laboratory Procedures.

The remainder of items covered under Basic and Major Restorative will retain the existing reimbursement with a total of all services having a combined annual maximum of $1,400.

b. Effective February 24, 2009, increase Basic (including items per Section Sa above) and Major Restorative annual combined maximum by $ 1 00 to $1,500.

6. Insurance Coverage to be maintained while actively employed to earlier of retirement or termination except LTD which shall be terminated at age 65.

98

··.:.,J __

7. Life- One-and-one-half (1.5) times annual salary.

8. A.D.&D. - Equal to annual salary.

APPENDIX 3

PENSION PLAN

The "Agreement Covering Pension Plan" which was in effect as of February 24, 2008 is hereby made part of the Memorandum of Settlement.

APPENDIX4

SEVERANCE PAY PLAN Effective March 1, 2008

1. Severance will be offered to any active employee permanently laid off from Dana Canada Corporation, Brantford, Ontario as a result of the discontinuance of a product line in whole or in part, and/or full or partial closure of the Plant and there is no other work available within the plant.

2. Employee must be in receipt of statutory notice of permanent layoff. Employees eligible for notice based on seniority and not active at work to receive notice of layoff as a result of being on Leave of Absence for WSIB, LTD, A&S, LMR, Maternity/Parental or Compassionate Leave are not automatically eligible for this enhanced severance unless they return to work and receive statutory notice of layoff. Upon full closure all employees on Leave of Absence for WSIB, LTD, A&S, LMR, Maternity/Parental or Compassionate Leave will become eligible following notice of layoff.

99

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3. Employees who are in receipt of notice of layoff and subsequently are approved for a Leave of Absence for WSIB or A&S, Maternity/Parental or Compassionate Leave will continue to be eligible for this Severance Plan.

4. Any employee electing the severance package will cease to be eligible for any other payments beyond the election date and will be deemed to have resigned their employment with Dana and forfeited their seniority rights.

5. Eligible employees will have their layoff benefits (excluding LTD and A&S) paid for by the Company for five (5) months from the end of the statutory notice period, while on layoff if elected within the period specified in #6.

6. Election to accept this Enhanced Severance Package must be made within sixty (60) days of the employee's last day of employment following the conclusion of the statutory notice period, or the package is considered void (excluding statutory requirements).

7. Payments will be made within fourteen (14) days of acceptance by the employee.

8. An employee may complete a direction under the Income Tax Act regarding termination pay and severance pay to have the entitlement paid directly into an RRSP or retirement vehicle chosen by the employee .

9. Employees, including those who retire during the closure or partial closure (within sixty (60) days of layoff) as determined in paragraph #1, and have been permanently laid off under this plan, will receive severance pay in accordance with Schedule 1 (Severance Payable).

10. Vacation pay owing will be paid at the time of enhanced severance payout.

~

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100

'

_,_,: .. ·

11. Employees, that have received their statutory notice, and are then recalled for work will not be re-eligible for this closure/severance package unless they work for more than thirty (30) calendar days without being laid off.

Notice to the Union

The Company agrees to provide up to one hundred and twenty (120) calendar days' notice to the Union if possible. The information supplied to the Union will include the number of employees potentially impacted and the rationale for the decision. It is understood that the information will be used for discussions between the parties and the workforce and will be considered confidential. The Union will have the opportunity to make proposals, which could alter or modify the decision. If job losses become unavoidable and the Employer decides to cease or reduce all or part of its operations, the following provisions shall take effect for those active employees who lose their employment.

Payments inclusive to Employment Standards Act will be as outlined on Schedule 1, Severance Payable, attached. AU payments will be based on full and partial years (Ex. 12 years and 6 months = 12.5 years).

An Adjustment Committee will be established as outlined in Schedule 2, attached.

Employee Records

The Employer will retain all employee records, including disability and Workers' Compensation records, for a period equal to the employee's seniority but not less than seven (7)

101

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____ ,.;

years from the date of closure. Reasonable access and/or · copies of such employee records shall be provided to the Union. In no event will the Employer deny the Union access to or copies of such records where the employee gives permission to release such records.

Recall Rights

In the case of partial closure, terminated or laid off employees will maintain their recall rights for a period of:

1. Their length of seniority to a maximum of forty-eight (48) months, or

2. Until severance is accepted.

In the case of total closure, terminated employees will maintain their recall rights for a period of:

1. Their length of seniority at the date of termination to a maximum of three (3) years, or

2. Until severance is accepted.

Schedule 1 -Severance Payable

Schedule 1 is inclusive of any amounts of severance pay required under Federal or Provincial Legislation. Each employee laid off permanently, as defined in items 1 to 11 above, will be entitled to a severance payment of:

• Employees with more than five (5) years of service, one week per year of service to a maximum of twenty-six (26) years of service.

102

r:;,:·.;

• In addition, employees will be eligible for the following enhancement to their severance (example: employee with ten (1 0) years would received ten (1 0) weeks pay plus $2,000):

Years of Total Years of Total Service Additional Service Additional

Severance Severance $ $

1 0 15 3,000 2 0 16 3,200 3 0 17 3,400 4 0 18 3,600 5 1,000 19 3,800 6 1,200 20 4,000 7 1,400 21 4,200 8 1,600 22 4,400 9 1,800 23 4,600 10 2,000 24 4,800 11 2,200 25 5,000 12 2,400 26 5,000 13 2,600 Over 26 5,000 14 2,800

Schedule 2

Adjustment Committee

As part of the Security Program, the Company will follow these directives in cases of a complete closure of this Dana Canada Corporation facility.

103

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1. The Company will participate in a Labour­Management Adjustment Committee and will seek financial assistance from the Federal Government and the Ontario Provincial Government.

2. Every Worker who is to be terminated will receive an in-depth (one hour) individual needs assessment conducted on Company time and provided at Company expense.

3. The Adjustment Committee of a maximum of six (6) people {three (3) Union members and three (3) Company members) will be provided two (2) days of training on adjustment issues and processes unless the action center is still in existence from the closure of the Plant. The training will be conducted on Company time and at Company expense.

4. The Company will provide adequate release time to members of the Adjustment Committee to effectively do their jobs.

5. Office space for an Action Centre and necessary equipment will be provided by the Company, for a period of six (6) months past the layoff.

6. The Employer will fund a Training Trust Fund to provide education outlined in Item #5 above, to be administered by the Adjustment Committee. The Employer's contribution shall be based on $150 per employee. Any unused employer's contributions will revert to the Employer twelve (12) months after the final layoff, or earlier, with the agreement of the Union.

104

APPENDIX 5

NEW HIRE GRADUATED BENEFIT PROGRAM

Graduated Benefit Summary - Brantford - Plan 270

3 MONTHS • Life Insurance • AD&D • Pension • Prescription Safety Glasses

6 MONTHS • Health • Vision

1 YEAR • Dental • Survivor Income Benefits

2YEARS • Short Term Disability

3YEARS • Long Term Disability

Benefit Continuance Three (3) months following the calendar month in which the layoff occurs. The benefits provided will be in accordance with the schedule above, but excluding pension contributions while on layoff, and STD and LTD.

105

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Graduated Benefits migrate to Standard benefit package at end of wage progression.

Grow In Wage

MEMORANDUM OF SETTLEMENT

The parties herein agree to the terms of this memorandum as constituting full settlement of all matters in dispute.

The undersigned representatives of the parties do hereby agree to recommend complete acceptance of all terms of this memorandum to their respective principles.

The parties herein agree that the term of the collective agreement shall be from February 24, 2008 through February 23, 2011.

Dated the 20'" day of March 2008 at Cambridge, Ontario.

For the Company

Paul Teeple Pat Spence Chuck Shaftey

106

For the Union

Jerry Dias Steve Farkas Douglas W. Aitchison Sr.

. -····-· -- -···-··H"" ·.-;:(··.:.:; ... ~ ··;;:~:;- ~~;,~~d~""fW:f.;;;-.:';,-::· . __ ,.)·-, ~~.iiti#L~'%1l~~~~,f~~~fr]:~~§t:;;~}f:}!~~ff}H{?;~~~ '>;·:·~1:c:·.c: ;·, .. ;·i:~;t· ,_ .;~..; .. , ,_'~~ ;-,. .. ~:/:~~--:,~:·, -· 1

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These rules do not form part of the Collective Agreement and may be adjusted at the discretion of the company, subject to the provisions of the Collective Agreement.

PLANT RULES AND REGULATIONS

In order to run a safe, efficient and profitable workplace, there are rules and regulations that each of us must follow. Violation(s) of rules and regulations (as outlined below) will result in disciplinary action. These are not inclusive of all possible infractions.

1. Failure to comply with Company safety, health, and environment standards and procedures.

2. Failure to comply with Company administrative policies, standards and procedures.

3. Failure to meet minimum work standards and procedures after a reasonable amount of time on the job.

4. Failure to carry out instructions and assignments from your Supervisor or designate.

5. Failure to report to work without an acceptable reason to the Company. Employees must contact their Supervisor or delegate in a timely manner when they are absent. Absences without leave are unjustifiable.

6. Recurrent tardiness or absence from work. 7. Stopping work before lunch, before quitting time, or

any other period when you should be working. 8. Leaving your assigned area without expressed

permission from your Supervisor or designate. 9. Being in an area of the plant other than your normal

work area without valid reason.

107

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10. Falsifying personnel, time, work, or production documents of your own or another employee.

11. Willful damage to Company property, property of a fellow employee or visitor.

12. Theft of property from the Company, another employee or visitor.

13. Gambling on Company property. 14. Harassment or ridicule of a coworker, supervisor or

visitor. Behaviour that is abusive or insulting. 15. Immoral conduct or indecency. 16. Fighting on Company property. 17. Acts of violence or threatening acts of violence. 18. Practical joking, horseplay, scuffling, or throwing

things. 19. Using fire exits for other than an emergency. 20. Failure to comply with personal appearance, attire or

hygiene standards. 21. Parking in restricted areas. (Cars may be towed away

at the owner's expense). 22. Post, remove, or deface material from Company

bulletin boards unless authorized to do so by the Company.

23. Consuming, possessing, distributing, dispensing, selling or offering to sell alcoholic beverages or illegal drugs or substances on Company property or when operating a Company vehicle.

24. Reporting for work or working in a condition which impairs your ability to perform your job.

25. Smoking in any plant area other than in designated "Smoking Areas" (your vehicle, or the smoking hut only).

!08

-)

26. Personal radios are allowed provided volumes are reasonable and musical content is non-offensive. During customer/vendor visits, radios will not be allowed. Devices with headphones are not allowed under any circumstances.

27. Cell phone use on the plant ftoor is prohibited. 28. Possession of weapons or explosives on Company

property. 29. Vending or soliciting on Company property without

permission. 30. Employees are not permitted to enter the facility or

facility grounds unless it is for a scheduled shift, or unless they have been granted permission to do so by a Manager or Supervisor.

31. Engaging in any employment, including self­employment, while claiming or in receipt of disability benefits of any kind.

Disciplinary action may include: • a verbal warning • a written warning • suspension • discharge

Disciplinary action for these and all other infractions will be applied fairly by weighing the seriousness of the act, by the individual's work record and any other relevant facts.

Any violation carries the possibility of serious discipline on the first offense.

t09

"SAFETY GUIDELINES"

We believe in a safe, healthy, and clean plant. We have listed a number of important Safety Guidelines. Please familiarize yourself with these and advise us of any unsafe conditions you may find.

If you experience an injury at work, you are to advise your Supervisor at once, then seek first aid or medical treatment, and report as soon as possible to Human Resources or the plant Nurse. Failure to do so may result in loss of compensation, group, or personal insurance.protection, and minor injuries not properly cared for promptly often develop into serious conditions.

We desire to maintain a clean, orderly plant, not only for good housekeeping purposes but also for your health and safety. To keep your plant clean and safe, your active cooperation in good housekeeping is essential.

For your protection safety devices must be operative at all times. Equipment should not be operated during repairs. Safety devices removed for access to repairs or maintenance must be re-installed upon completion of work.

*It is illegal to bypass any safety device*

Don't operate, repair, adjust, or lubricate any power driven equipment unless you have been thoroughly instructed and authorized.

Machines must be shut down (power off, drive stopped) before you clean, oil, repair, set-up or when you leave the machine for a considerable time or distance, i.e. breaks.

110

Aisle, doorways, gates, roadways, firefighting equipment, power and lighting panels must be kept clear at all times.

Personal protective equipment, safety glasses, earplugs, and safety shoes, must be worn at all times. Any other protective equipment, which is required by the Occupational Health and Safety Act for specific areas such as, welding, shields, safety h·arness, gloves, and grinding shields should be used.

Horseplay of all types, and running (except in extreme emergency such as aiding an injured person or fire fighting) are prohibited.

Equipment capable of starting fires (grinding, heating, burning, welding, spark producing tools, etc.) Require a hot work permit be filled out before using.

Smoking is permitted in your vehicle or the smoking hut only.

Rings, wristwatches, jewelry, and loose ties should not be worn near rotating machinery, shafts, hoists, fly, and gear wheels at any time.

Hand tools should be kept in good condition and used in a safe and proper manner. Worn, damaged, or otherwise dangerous tools should be called to the attention of your Supervisor so they can be replaced.

Set up shield guards around any operation, which causes foreign objects to fiy, (air grinding, chipping, resistance welding, etc.) to protect other people.

Ill

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All safety items used in the plant must comply with safety requirements.

"DANGER" signs must be displayed and barricades made if necessary, wherever work creates an open hazard to other people; this includes curtains, fences and roped off areas.

Never remove a "DANGER OR SAFETY" sign if you are not authorized to do so.

Abide by regulations and safe operation procedures outlined in the Occupational Health and Safety Act and Emergency Procedures. ·

112

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i A I Emergency Call-Back Pay

..................................... 39

Able To Perform ............. 46 Employee Assistance ..... 49

Accident And Incident Inspections .................. 54

I F-- II Accommodated Work ..... 47 Failure Of Power Supply 38 Act Of God ..................... 39 Fire ................................. 39 Adjustment Committee. 101 First Aid Attendants ........ 56 Apprentices .................... 44 Arbitrators ....................... 14 I G I I B I Grievance Procedure ....... 9

Benefits .......................... 94 ,- H I Bereavement Leave Of

Absence ....................... 42 Bulletin Boards ............... 45

Health Club Support ....... 83 Health, Safety And

Environment. ................ 51

i c I Holiday Pay Qualifications ..................................... 58

Changing Start Time Hours Hours Of Work ................ 30 ..................................... 81

Cooling Off Period .......... 48 I I II ! D I Injured Workers Provisions

..................................... 56 Departments Within The

Brantford Facility .......... 85 I J II Disclosure Of Information

···················55 Double Time ................... 34

Job Posting ..................... 22 Job Rotation ............. 60. 84 Job Rotation

! E -J Implementation ............. 86 Joint Anti-Harassment

Education And Training .. 54 Policy ........................... 61

117

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Joint Health, Safety And Environment Committee ..................................... 52

Jury/Coroner Duty .......... 43

~- L -~

Labour Management Meetings ...................... 87

Lay Off ............................ 18 Lead Hand ...................... 24 Leave For Union Business

..................................... 42 Letter Of Understanding #1

-Able To Perform ....... 46 Letter Of Understanding #2

-Accommodated Work47 Letter Of Understanding #3

-Cooling Off Period .... 48 Letter Of Understanding #4

- Employee Assistance49 Letter Of Understanding #5

- Health, Safety And Environment ................ 51

Letter Of Understanding #6 -Holiday Pay Qualification ................. 58

Letter Of Understanding #7 - Job Rotation ............. 60

Letter Of Understanding #8 - Joint Anti-Harassment Policy ........................... 61

Letter Of Understanding #9 -Paid Education Leave (PEL) ........................... 67

118

Letter Of Understanding #1 0- Skilled Trades .... 69

Letter Of Understanding #11 -Silled Trades Tool Replacement... ............. 70

Letter Of Understanding #12 - Summer Students ..................................... 71

Letter Of Understanding #13- Temporary Workers ..................................... 73

Letter Of Understanding #14 - Women Advocate ····································· 75

Letter Of Understanding #15- No Transfer Of Work Between Plants .. 77

Letter Of Understanding #301 -Changing Start Time Hours .................. 81

Letter Of Understanding #302 - Health Club Support ........................ 83

Letter Of Understanding #303- Job· Rotation ..... 84

Letter Of Understanding #304 -Job Rotation Implementation ............ 86

Letter Of Understanding #305 - Labour Management Meetings 87

Letter Of Understanding #306 - Plant Safety Glasses ........................ 88

. ..•.. •····• .•.•.. ;;;.,;;;;,_{,,,,;i;;,i;;;c~; •. d.::,,: '·····: ;., :

Letter Of Understanding #307- Shift Rotation, Production Departments ..................................... 90

Letter Of Understanding #308 - Union Work Space .......................... 92

Letter Of Understanding #309 -Work Shortage Days, Article 11.04 ...... 93

Lockout And Machine Guarding ...................... 56

I M ' Management Rights ......... 4 Memorandum Of

Settlement ................. 1 04

I N I New Hire Graduated

Benefit Program ......... 103 No Transfer Of Work

Between Plants ........... 77 No Working Alone .......... 57 Notice Of Layoff And Recall

Option .......................... 21

I o ~ Overtime ......................... 33 Overtime Premiums ....... 34

119

I P I Paid Education Leave

(PEL) ............................ 67 Paid Holiday ................... 34 Paid Holidays ..........•....... 25 Pension Plan .................. 97 Personal Leave Of

Absence ....................... 41 Physicians Fees ............ .40 Plant Rules And

Regulations ................ 105 Plant Safety Glasses ...... 88 Power Shortage .............. 38 Prescription Safety Glasses

..................................... 88 Probationary Period ........ 17 Product/Job Elimination .. 19 Protective Clothing And

Equipment... ................. 56 Public Office ................... 41 Purpose Of Agreement.. ... 2

I R f Recal1. ............................. 22 Recognition ....................... 3 Regular Layoff (More Than

3 Working Days) .......... 19 Reinstatement After Sick

Leave ........................... 40 Reporting-In Pay ............ 38 Returning From

Wsib/Std/Ltd ................ 21

·,

Right To Accompany Inspectors .................... 55

Right To Accompany National Union Health And Safety Representative ............ 55

Right To Refuse ............. 53

I s I Safety Guidelines ......... 108 Safety Shoes .................. 89 Seniority ......................... 17 Severance Pay Plan ....... 97 Shift Premiums ............... 34 Shift Premiums ............... 33 Shift Rotation, Production

Departments ................ 90 Sick Leave Of Absence .. 39 Skilled Trades ................ 69 Strikes And Lockouts ....... 9 Subject: Skilled Trades

Tool Replacement ....... 70 Summer Students .......... 71

i T I Temporary

Assignments/Transfers 24 Temporary Workers ....... 73

- ·\ ..

'-"C.

120

Term Of The Collective Agreement ................. 1 04

Time And One-Half ......... 33 Training ........................... 20

i u I Union Membership And

Check-Off/Union Dues.15 Union Representation ....... 6 Union Work Space ......... 92 Unpaid Leave Of Absence

...................... ~ ............. 41

I v II Vacations ........................ 28 Voluntary Inverse Layoff.20

I w I Wages ............................ 94 Women Advocate ........... 75 Work Shortage Days (Up

To 3 Working Days ...... 19 Work Shortage Days, Article

11.04 ............................ 93 Workplace Harassment

Policy ........................... 61

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