From:CARPENTER'S UNION LOCAL 1598 To: 12506293501 11/24/2010 15:39 #567 P.006/009

II LETTER OF UNDERSTANDING

II BY AND BETWEEN:

AND:

British Columbia Regional Council of Carpenters

(Hereinafter referred to as the "Union")

Construction Labour Relations Association of BC On behalf of ThyssenKrupp Safway Inc.

(Hereinafter referred to as the "Employer")

The terms and conditions of this Letter of Understanding shall supercede all contrary terms and conditions of the CMA W Carpenters Standard Industrial Agreement and the CMA W Carpenters Standard Commercial/ Institutional Agreement with respect to the application of such Agreements to ThyssenKrupp Safway Inc.

1. Back&round

The Employer was signatory to the CMA W Carpenters Standard Industrial Agreement and the CMA W Carpenters Standard CommerciaUInstitutional Agreement when the Union made application to the LRB for a change in union representation of the bargaining unit. The Union was ultimately granted certification for the bargaining unit on January 8, 2009 which resulted in the terms and conditions of both CMA W Agreements essentially being inherited by and thereafter governed by the Union. The purpose of this Letter ofU nderstanding is to modifY such terms and conditions.

2. Minimum StraiKbt Time Hourly Wage Rates

The minimum straight time hourly wage rates as provided for within Schedule "A" attached shall apply.

3. Employer Contributions and Employee Deductions

The employer contributions and employee deductions as provided for within Schedule "B" attached shall apply. Employer contributions and employee deductions shall be calculated on the basis of "hours earned" for industrial projects and on the basis of "hours worked" for commerciallinstitutional projects.

4. Carpenter Apprenticeship Standards

a. The minimum straight time hourly wage rate for an apprentice shall be calculated as a percentage of the applicable minimum straight time hourly wage rate for a journeyperson on the project in accordance with the following schedule.

ptTerm 50%

2nd Tenn 55%

3rd Term 60%

4th Term 65%

5th Term 70%

6th Term 75%

7th Term 85%

8th Term 90%

b. The Union shall detennine the initial classification and all subsequent reclassifications of an apprentice, and shall advise the Employer accordingly, in writing. The Union's determination shall be based on the apprentice's work experience hours and completion of technical training. Notwithstanding the foregoing, the Employer retains the unfettered right to supercede the Union's determination if the Employer does not believe it is appropriate and/or warranted based on the apprentice's skills, ability, expertise and productivity. The Employer shall advise the Union, in writing, upon exercising this right.

Fro<m: CARPENTER ' S UNION LOCAL 1598 To : 12506293501 11/24/2010 15 :40 #567 P.D07/D09

(2)

5. Subcontractioe

There shall be no restrictions whatsoever on the Employer's right to subcontract work. Without limiting the foregoing, such right shall apply regardless of whether or not the subcontracted work is the craft jurisdiction of the carpenter, and/or whether or not the subcontractor(s) is/are governed by a union collective agreement(s) .

6. Hiring

a. The Union shall actively assist the Employer in supplying qualified prospective employees. The Employer shall retain the right to refuse employment to any individual if the Employer does not believe such individual is suitable for the available work.

b. In the event the Employer wishes to hire an individual who is not a Union member, the individual shall join the Union within forty (40) days of commencing employment. The Union shall accept the individual into its membership. The Employer shall notify the Union within fourteen (14) days of hiring such an individual.

7. Semi-Skilled Workers

The Employer may hire a semi-skilled worker(s) and shall have the right to classify and compensate such semi­skilled worker(s) pursuant to their individual skills, ability and expertise. The minimum straight time hourly wage rate for a semi-skilled worker shall be calculated as a percentage of the applicable minimum straight time hourly wage rate for ajourneyperson on the project in accordance with the following schedule.

Levell 50% Level 3 60% LevelS 70% Level 7 85%

Leve12 55% Level 4 65% Level 6 75% Level 8 90%

8. Joint Labour Manaeement Training Fund

The Union commits to establishing a BC Mainland Joint Labour Management Training Fund once there are sufficient contributing employers of sufficient size to warrant same. Prior to such Joint Fund being established, the Employer shall contribute to the Union Training Fund in accordance with Schedule "B". Subsequent to the Joint Fund being established, contributions to the Union Fund shall he redirected. The Joint Fund shall be similar in structure to the equivalent Vancouver Island Training Fund.

9. Other Applicable Terms and Conditions

The terms and conditions of the CMA W Carpenters Standard Industrial Agreement and CMA W Carpenters Standard Commercial/Institutional Agreement not otherwise superceded by this Letter of Understanding shall remain in effect.

Dated this] 2th day of February, 2009

If of::

Construct' n Labour Relations Association of Be

Dated this 12th day of February, 2009

Signed on behalf of:

British Co u bia Regional Council 0

SCHEDULE "A" MINIMUM STRAIGHT TIME HOURLY WAGE RATES

Foreman (115%)

.JOIt rl1c~ ()(,I'SOI1 «( OW:;.,) 32.20 33.64 33. % 21).04 30.2:; 30.:;8

Apprentices: Semi-Skilled Workers:

8th Term (90%) Level 8 (90%)

7th Term (85%) Level 1 (85%)

6 th Term (15%) Level 6 (75%)

5 th Term (10%) Level 5 (70%)

4th Term (65%) Level 4 (65%)

3'd Term (60%) Level 3 (60%)

2 nd Term (55%) Level 2 (55%)

I st Term (50%) Level I (50%)

Material HandlerfPre-Apprentice (50%)

Annual Vacation and Stat. Holiday Pay

Metro Travel Premium

Refer to Article 7.100. The Metro Travel Premium is payable only within the Lower MainlandIFlllSer Valley, Victoria, Duncan, Nanaimo and

Courtenay-Campbell River. In these regions, the otherwise applicable hourly wage rate shall be increased by the applicable Metro Travel Premium amount. Annual Vacation Pay and StatutoI)' Holiday Pay shall be calculated on the resulting new total.

The Metro Travel Premium is no! subjcc! to Overtime premiwns or Shift premiums.

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EMPLOYER CONTRIBUTIONS:

Health & Welfare Plan

RSP

Administration Fund

Union Training Fund

Assoc. of BC Scaffold Contractors

CLR Contract Administration Fund

CETA-BC

ACEofBC

Rehabmtation Plan

Jurisdictional Assignment Plan

SCBCBTU Fund

Joint Advisory Committee

Total f.lllrl()~ ('I' C()lltl'ihlltion~

EMPLOYEE DEDUCTIONS:

Field Dues

Local Dues Checkoff

Total EJI1plo~(' (' Ikduction~

ALL RSP OPTION:

SCHEDULE "B" EMPLOYER CONTRIBUTIONS AND EMPLOYEE DEDUCTIONS

An Employee may opt to receive 90% of the otherwise applicable Health & Welfare Plan contribution in the fonn of an additional RSP contribution ifilie Employee is able to demonstrate that he/she has MSP coverage via another service provider. Refer to following schedule for details.

EMPLOYER CONTRIBUTIONS:

Health & Welfare Plan

RSP

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