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This Memorandum of Agreement

is entered into on October 19, 2017

and is effective as of

October 19, 2017

B E T W E E N:

TransAlta Generation Partnership (TAGP) Windsor Essex Co-Generation Plant

Windsor, Ontario

(as used herein, the term "Company" means

TransAlta Generation Partnership)

A N D:

Local 444

(hereinafter referred to as the "Union")

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TABLE OF CONTENTS PURPOSE ...................................................................................................................... 5

Section (1) ............................................................................................. 5 RECOGNITION ............................................................................................................. 5

Section (2) - Employees Covered .......................................................... 5 Section (3) - Management's Rights ...................................................... 5

NO DISCRIMINATION ................................................................................................ 5 Section (4) ............................................................................................. 5

NO STRIKE OR LOCKOUT ......................................................................................... 6 Section (5) ............................................................................................. 6

UNION SECURITY ....................................................................................................... 6 Section (6) ............................................................................................. 6

A. Requirement of Union Membership.............................................. 6 B. Initiation Fee ................................................................................. 6 C. Check-Off of Union Dues ............................................................... 7

REPRESENTATION ..................................................................................................... 8 Section (7) - Representatives ............................................................... 8 Section (8) - Representatives' Rights and Obligations ....................... 8

GRIEVANCE PROCEDURE ......................................................................................... 8 Section (9) - Validity of Grievance ....................................................... 8 Section (10) - Step 1.............................................................................. 9 Section (11) - Step 2.............................................................................. 9 Section (12) - Group Grievance ............................................................ 9

ARBITRATION .............................................................................................................. 9 Section (13) - Arbitrability of Grievance ............................................. 9 Section (14) - Appointment of Arbitrator .......................................... 10 Section (15) - Joint Stipulation .......................................................... 10 Section (16) - Arbitration Hearing ..................................................... 10 Section (17) - Jurisdiction of Arbitrator ............................................ 10 Section (18) - Arbitrator's Expenses .................................................. 11

SENIORITY ................................................................................................................. 11 Section (19) - Seniority Defined ......................................................... 11 Section (20) - Probationary Employees ............................................. 11 Section (21) - Loss of Seniority .......................................................... 13 Section (22) - Seniority Lists .............................................................. 11 Section (23) - Preferences in Job Assignments (other than Daily) .. 14 Section (24) - Promotions ................................................................... 14

LAYOFF AND RECALL .............................................................................................. 15 Section (25) - Temporary Layoffs ....................................................... 15 Section (26) - Layoff and Recall ......................................................... 16 Section (27) - Upgrade Skills ............................................................. 17 Section (28) - Application of Bargaining-Unit Wide Seniority ......... 17 Section (29) - Seniority of Representatives ....................................... 17

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Section (30) - Seniority of Employees Promoted to Salary ............... 17

DISTRIBUTION OF OVERTIME ............................................................................... 17 Section (31) ......................................................................................... 17

LEAVE OF ABSENCE ................................................................................................ 18 Section (32) ......................................................................................... 18

VACATION PLAN ....................................................................................................... 19 Section (33) - Payment Schedules ...................................................... 19 Section (34) - Eligibility ..................................................................... 23 Section (35) - Timing of Vacation ...................................................... 24

HOLIDAY PAY ............................................................................................................ 26 Section (36) - Holidays Designated .................................................... 26 Section (37) - Holiday Pay Eligibility ................................................ 28 Section (38) - Failure to Work on a Holiday ...................................... 29 Section (39) - Holidays Failing on Sunday ........................................ 29 Section (40) - Employees on Leave of Absence for Jury Duty or

Vacation ................................................................................... 29 Section (41) - Jury Duty ..................................................................... 30 Section (42) - Bereavement Pay ......................................................... 30

WORKING HOURS ..................................................................................................... 31 Section (43) - Call-in Pay/Standby/Sleep time .................................. 31 Section (44) – Call-in Pay/Standby .................................................... 31

A. Maintenance ................................................................................ 31 B. Operators ..................................................................................... 32

WAGES ........................................................................................................................ 29 Section (45) - Cost-of-Living Allowance ............................................. 29 Section (46) - Wage Increases ............................................................ 36

WAGE PROGRESSION .............................................................................................. 36 Section (47) ......................................................................................... 36

VOLUNTARY TERMINATION, INSURANCE, HEALTH CARE AND RE-LOCATION ALLOWANCE ................................................................................... 36

Section (48) ......................................................................................... 32 PAYMENT FOR DAY OF INJURY ............................................................................ 36

Section (49) ......................................................................................... 36 PAY SHORTAGE ERRORS ........................................................................................ 33

Section (50) ......................................................................................... 33 CONCLUSION ............................................................................................................. 37

Section (51) - Notice ........................................................................... 37 Section (52) - Duration of Agreement ................................................ 38

APPENDIX "A" ............................................................................................................ 40 LETTERS ..................................................................................................................... 41

Letter 1 - Outside Contracting/Work Ownership ............................ 41 Letter 2 - Supervisors Working ........................................................ 41 Letter 3 - Tuition Refund .................................................................. 42

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Letter 4 - Use of Past Disciplinary Record ...................................... 42 Letter 5 – Employee Training .......................................................... 42 Letter 6 - Health and Safety Representative ................................... 43 Letter 7 - Posting Procedure ............................................................. 43 Letter 8 - Payment for Safety Shoes ................................................ 43 Letter 9 - Altered Scope Assignments .............................................. 44 Letter 10 - (a)Transition and Bridge Benefit .................................. 44 Letter 11 - Meetings.......................................................................... 45 Letter 12 – Closure of Operation or Permanent Job Loss............... 45 Letter 13 - Earnings Limitation ....................................................... 46 Letter 14 - Pension Benefit Reduction ............................................. 46 Letter 15 - Preferential Hiring ......................................................... 46 Letter 16 - Crossing Picket Lines - Statement of Policy ................. 46 Letter 17 - Operational Understandings ......................................... 47 Letter 18 - Audiometric Evaluation ................................................. 48 Letter 19 - Job Opportunity.............................................................. 48 Letter 20 - Paid Education Leave Program ..................................... 48 Letter 21 - Reporting to Work on Scheduled Absent Day ............... 49 Letter 22 - Job/income Security Program ........................................ 49 Letter 23 - Employment Standards ................................................. 49 Letter 24 - Health and Safety ........................................................... 50 Letter 25 - Prescription Glasses ....................................................... 50 Letter 26 - Students .......................................................................... 51 Letter 27 - CUOE Retirees ............................................................... 51 Letter 28 – Employees Hired for Short Durations .......................... 51 Letter 29 – Staffing ........................................................................... 51 Letter 30 – Temporary Off Site Assignments .................................. 52 Letter 31 - Trade Certificates Licenses ............................................ 53 Letter 32 - Management of Vacation & PAA…………………….49 Letter 33 - Transitional PAA alottement and scheduling…...49 Letter 34 – Training Hours……………………… …………………...…49 Letter 35 – Pension & Benefit Eligability……………………….… …49

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PURPOSE

Section (1)

The purpose of this Agreement is to provide orderly collective bargaining relations between the Company and the Union with respect to the matters hereinafter dealt with.

RECOGNITION

Section (2) - Employees Covered

The Company recognizes the Union for the duration of this Agreement as the sole bargaining agent for collective bargaining purposes for all employees at 2545 Chrysler Centre and 2600 Temple Drive in the City of Windsor, save and except supervisors, office and clerical staff. Section (3) - Management's Rights

(a) The Union recognizes the rights of the Company to hire, promote and transfer, suspend or otherwise discipline and discharge any employee, subject to the right of the employee concerned to lodge a grievance in the manner and to the extent herein provided.

(b) The Union further recognizes the undisputed right of the Company to operate and manage its business in all respects in accordance with its commitments and responsibilities. The Company also reserves the right to make and alter, from time to time, rules and regulations to be observed by employees, which rules and regulations shall not be inconsistent with the provisions of the Agreement, and any changes in such rules and regulations will be discussed with the Union Negotiating Committee before being put into effect.

NO DISCRIMINATION

Section (4)

(a) There shall be no discrimination, interference, restraint or coercion by, or on behalf of, the Company regarding any employee because of membership in the Union. The Union, its members and/or its agents shall not intimidate or coerce or attempt to intimidate or coerce employees into membership, and shall not conduct Union activities on Company time or premises except as herein expressly provided.

(b) The Company and the Union further agree there shall be no discrimination against any employee for any reason proscribed by the Ontario Human Rights Code.

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NO STRIKE OR LOCKOUT

Section (5)

(a) The Union agrees that there shall be no strike, work stoppage, slow down, interruption or interference with work or the operation of the Company, including picketing by, or on behalf of, the employees during the term of the Agreement.

(b) The Company agrees that it will not cause or direct any lock-out of its employees during the term of the Agreement.

UNION SECURITY

Section (6)

A. Requirement of Union Membership

(a) Employees covered by this Agreement at the time it becomes effective, who are members of the Union at that time, shall be required as a condition of continued employment to continue membership in the Union for the duration of this Agreement.

(b) Employees covered by this Agreement, who are not members of the Union at the time it becomes effective, shall be required as a condition of continued employment to become members of the Union for the duration of this Agreement on or before the 40th day following such effective date.

(c) Employees hired, rehired, reinstated or transferred into the bargaining unit after the effective date of this Agreement and covered by this Agreement shall be required as a condition of continued employment to become members of the Union for the duration of this Agreement on or before the 40th day following the beginning of their employment in the unit.

(d) An employee who shall tender an initiation fee (if not already a member) and the periodic dues uniformly required as a condition of acquiring or retaining membership shall be deemed to meet the conditions of this Section.

(e) Employees shall be deemed to be members of the Union within the meaning of this Section if they are members and are not more than sixty (60) days in arrears in payment of membership dues.

B. Initiation Fee

(a) Employees shall tender the initiation fee by signing the Authorization form.

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(b) The initiation fee for membership in the Union shall not exceed the limits of the Constitution of the Union prescribed at the time the employee becomes a member.

(c) Any dispute arising as to an employee's membership in the Union shall be reviewed by the Operations and Maintenance Manager or his/her designate and a representative of the Union, and if not resolved may be submitted directly to arbitration.

C. Check-Off of Union Dues

(a) The parties agree that there shall be continued check-off of Union dues compulsory upon all employees who come within the unit to which the Agreement applies. It shall continue during the period of the Agreement. The amount to be deducted shall be such sum as may from time to time be assessed by the Union on its members according to its Constitution. A statement copy of the monthly check-off list shall be provided to the Plant Chairperson.

(b) The deduction shall be made only in the conditions and circumstances relating to the payment of dues laid down by the Constitution and By-Laws of the Union. At the end of each week in which deductions are taken, the Company shall remit by cheque the total of the deductions to the Union.

(c) The deduction on the records of the Company shall constitute the sums so deducted as money held by the Company in trust for the Union.

(d) In cases where a deduction is made that duplicates a payment that an employee already has made to the Union, or where a deduction is not in conformity with the provisions of the Union Constitution and By-Laws, refunds to the employee will be made by the Union.

(e) The Company shall not be liable to UNIFOR or its Local by reason of the requirements of this Agreement for the remittance or payment of any sum other than that constituting actual deduction made from wages earned by employees.

(f) The Union shall indemnify and hold harmless the Company against any and all liability, which may arise by reason of the check-off by the Company of Union initiation fees and membership dues from employees' wages in accordance with this Agreement.

(g) Except as otherwise specifically provided or dealt with, any dispute as to a violation or interpretation of any provision of this check-off Section shall be a matter for the grievance procedure and shall be submitted directly to the Umpire.

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REPRESENTATION

Section (7) - Representatives

The Union may elect and the Company shall recognize two (2) Committee Members, who shall be from the bargaining unit, as members of the Grievance Committee, one (1) member of which shall be appointed as Chairperson. Each Committee Members at the time of his/her appointment shall have at least twelve (12) months' service with the Company. These same members shall constitute the Negotiating Committee. Section (8) - Representatives' Rights and Obligations

It is understood and agreed that Committee Members, as well as other employees, have regular Company duties to perform. A Committee Member, with the approval of the TransAlta Manager or his/her designate and which approval shall not be unreasonably withheld, shall be permitted, during his/her regular working hours without loss of time or pay, to leave his/her regular duties for a reasonable period of time to adjust and present grievances. Whenever, in the opinion of the TransAlta Manager or his/her designate concerned, more than a reasonable period of time is taken by a Committee Member to accomplish such grievance adjustments and presentations, payment for such period as he/she might consider to be excessive shall be declined. In the event that the Staff Representative for the Union desires access to the Cogeneration Plant or Power Plant arrangements and approval shall be implemented upon request to the TransAlta Manager or his/her designate. The parties also agree and acknowledge that access to said establishment shall be limited only to the day shift.

GRIEVANCE PROCEDURE

Section (9) - Validity of Grievance

(a) No grievance shall be considered which usurps the function of management of the Company as reserved to it in this Agreement. All grievances shall be dealt with and disposed of as hereinafter provided.

(b) It is understood that nothing contained in this Agreement is intended to preclude the informal review of employee complaints or concerns between the employee and management representatives.

(c) It is the mutual desire of the parties that complaints of employees shall be adjusted as quickly as possible. Investigation and preparation with respect to grievance while at work may be allowed, providing the operations are not interfered with and there is no abuse of this process. The Company shall not unnecessarily withhold its permission when requests are made to carry out such

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investigation and preparation. The processing of a grievance to management by the aggrieved employee will be done during working hours but must not interfere with the regular conduct of business.

(d) The parties recognize the desirability of settling disputes and complaints through the use of good judgment and clear communications. In every case where an employee feels she/he has been treated unfairly or that she/he has a complaint, she/he may discuss it and/or any phase of his/her employment with his/her immediate supervisor. If the employee is not satisfied with the reply of his/her immediate supervisor, the employee may file a written grievance in the following manner and sequence.

Section (10) - Step 1

The grievance may be reduced to writing and delivered to the TransAlta Manager on employee grievance forms, provided that it shall be optional to the Company to decline to consider any grievance, the alleged circumstances of which originated or occurred more than ten (10) calendar days prior to its presentation. The TransAlta Manager shall deal with the grievance with the Chairperson or his/her designate and render his/her decision in writing not later than the five (5) calendar days after the day upon which he/she received the grievance. Section (11) - Step 2

If the decision of the TransAlta Manager is not satisfactory to the Union, the Union may within five (5) calendar days thereafter, appeal in writing to the Human Resources or his/her designate. A copy also needs to be sent to the Local Union and thereafter takes the grievance up at a scheduled meeting between Human Resources and the local union. Following such a meeting, the decision of the Human Resources shall be rendered within 10 calendar days unless an extension of such time limit is agreed upon. Section (12) - Group Grievance

The grievance procedure equally shall apply to a grievance lodged by a group of employees and follow steps one (1) and two (2) of the grievance procedure

ARBITRATION

Section (13) - Arbitrability of Grievance

Where a grievance alleges improper suspension or discharge of an employee or alleges that an employee has been wrongfully classified or where the Union, on behalf of an employee concerned, alleges that there has been a misinterpretation or a violation of this Agreement, the difference between the parties and any grievance

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involving such suspension, discharge, classification, misinterpretation or violation shall, within thirty (30) calendar days from the date of the decision in the preceding step, be referred to arbitration in a manner and under conditions hereinafter set forth. The parties may however extend such time limit by written mutual agreement. Section (14) - Appointment of Arbitrator

Upon the written request of the Union on behalf of the employee concerned made to the Company, or upon the written request of the Company made to the Union, any such grievance which has not been settled to the satisfaction of the parties concerned after being carried through the relevant steps of the grievance procedure of this Agreement shall be referred to an arbitrator. Such arbitrator shall be chosen either by mutual agreement of the parties involved or, failing such agreement, within ten (10) calendar days from the date of the written request for arbitration by the Minister of Labour for the Province of Ontario. Section (15) - Joint Stipulation

(a) The Company and the Union, on behalf of the employee concerned, shall within ten (10) calendar days prior to the date of the hearing as fixed by the arbitrator sign a joint stipulation of the dispute or question which is to be arbitrated. Such stipulation shall contain a statement of the issue in dispute and in addition may include a brief statement of the position of the Company as well as a brief statement of the position of the Union on the question at issue.

(b) The Company agrees that it will not dispute the arbitrability of any grievance based upon the failure of the parties to submit a joint submission.

Section (16) - Arbitration Hearing

(a) The arbitration hearing shall be held at a place mutually agreed upon by the parties or, failing agreement, as fixed by the arbitrator. If a hearing is not held within six (6) months of the appointment of the arbitrator, then those grievances scheduled for such hearing shall be considered as having been finally disposed of. Such six (6) month period may be extended by mutual agreement of the parties.

(b) The Company agrees that it will not dispute the arbitrability of any grievance based upon the failure to comply with this time limit, provided such lack of compliance was not due to delay or any other improper motive attributable to the Union.

Section (17) - Jurisdiction of Arbitrator

The jurisdiction of the arbitrator shall be limited to a decision on the dispute or question set forth in the stipulation. In arriving at his/her decision, the arbitrator

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shall not change or disregard any provision of the Agreement nor establish or change any wage or rate of pay. The arbitrator, however, shall have power to vary or set aside any penalty imposed by the Company relating to the grievance then before him/her. All decisions of the arbitrator arrived at in accordance with the provisions of this Agreement shall be final and binding on the Company and all persons concerned.

Section (18) - Arbitrator's Expenses

The expense, if any, of the arbitrator shall be divided equally between the Company and the Union and shall be paid by them.

SENIORITY

Section (19) - Seniority Defined

(a) Seniority is bargaining unit wide and as far as accumulation of seniority is concerned prior to the date of this Agreement, seniority shall be the earlier of:

(ii) (i) The employee's date of commencement of employment in the power plant with Chrysler Canada Ltd.;The employee's date of commencement of employment in the power plant or cogeneration plant with TransAlta Generation Partnership.

(b) An employee's service shall be as of the employee's commencement date with either of Chrysler Canada Ltd. or TransAlta Corporation, whichever is earlier, and such employee's service as opposed to seniority shall be utilized for the purposes of determining pension and benefit entitlement, including vacations.

Section (20) - Probationary Employees

(a) New employees of the power plant shall be considered as probationary employees for the first ninety (90) calendar days of their employment. The ninety (90) calendar day probationary period shall be accumulative over twelve (12) consecutive months unless the employee is on the active roll, vacation, or temporary layoff wherein the probationary period will continue. After employees have finished the probationary period, they shall be entered on the seniority list of the power plant and shall rank for seniority from the date ninety (90) calendar days prior to the date upon which seniority is attained, or in the case of an employee placed on the seniority list after ninety (90) calendar days intermittent employment within any period of twelve (12) consecutive months in the order of the date ninety (90) calendar days prior to his/her attaining seniority. In the event where a probationary employee has not had adequate time to have his/her competency levels tested due to no plant start-ups or has shown that they need more time to cover the required training modules, by mutual agreement between

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Management and the Union, the probationary period may be extended up to an additional 90 days.

(b) New employees of the power plant hired as temporary or vacation replacements shall be considered as probationary employees for the first one hundred and twenty (120) days of their employment. They shall not accumulate time toward the fulfillment of the probationary period unless and until their employment status is changed from that of a temporary or vacation replacement to that of a new employee under subsection (a). Consecutive time worked as a temporary or vacation or vacation replacement shall accumulate toward the fulfillment of the probationary period in the event the employee’s status is changed to that of new employee under subsection (a).

(c) There shall be no seniority among probationary employees.

(d) No grievance shall be lodged or prosecuted against the termination of employment by the Company of the probationary employee unless the employee has worked thirty (30) days.

(e) The Union shall represent probationary employees for the purposes of collective bargaining in respect to rates of pay, wages, hours of employment and other conditions of employment as set forth in Section (1) of this Agreement.

(f) An employee who is separated during his/her probationary period for an occupational disability arising out of his/her employment by the Company and who is subsequently reinstated shall be required to complete his/her probationary period and, upon doing so, shall have a seniority date which includes the time she/he was separated due to such disability plus ninety (90) days.

(g) Where a probationary employee's performance is unsatisfactory, the supervisor will review the employee's performance with the “Plant Chairperson or designate”.

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Section (21) - Loss of Seniority

Seniority and employment shall cease for any one of the following reasons:

(a) If the employee quits;

(b) If the employee is discharged and such discharge is not reversed through the grievance procedure;

(c) If the employee is absent for forty (40) consecutive scheduled hours of work without advising the TransAlta Manager or his/her designate giving satisfactory reasons;

(d) If the employee fails to return to work within forty (40) consecutive scheduled hours of work after notification to do so to his/her address on record with the Company, unless she/he furnishes satisfactory reasons for such failure;

(e) If the employee is not called upon to perform work for the Company for a period of forty eight (48) consecutive months or for a period equal to his/her seniority at the date when she/he last performed work for the Company, whichever shall be greater;

(f) If the employee retires or receives a pension under the Defined Benefit Pension Plan. If she/he receives a pension for a permanent total disability and recovers and has his/her pension discontinued, his/her seniority, including that which she/he otherwise would have acquired during the period of his/her disability, shall be restored; provided, however, if the period of his/her disability retirement was for a period longer than the seniority she/he had on the date his/her pension for permanent total disability began, she/he shall upon the discontinuance of his/her permanent total disability pension be given seniority equal to the amount of seniority she/he had on the date such pension began.

(g) If the employee receives a permanent total disability benefit under a group life insurance policy held by the Company. If such employee recovers and either (a) his/her permanent total disability benefit is discontinued or (b) his/her permanent total disability benefit has been fully paid, his/her seniority, including that which she/he otherwise would have acquired during the period of his/her disability, shall be restored. Provided, however, if the period is longer than the seniority she/he had on the date she/he was approved for a permanent total disability benefit, she/he shall upon the restoration of his/her seniority be equal to the amount of the seniority she/he had on the date such permanent total disability benefit was approved. However, as to an employee who received such benefit prior to the date of this Agreement, his/her seniority will continue to accumulate and, should she/he recover, his/her total accumulated seniority will be credited.

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Section (22)- Seniority Lists

(a) Seniority lists shall be maintained at all times by the Company and shall be made available to the Committee Members for inspection to the extent reasonably necessary to ascertain the seniority status of an employee within the plant.

(b) The Company shall post one (1) revised seniority list as required for the bargaining unit each six (6) months or when a change to the seniority list occurs, and copies of same shall be supplied to each Committee Member. The lists so supplied shall include each employee's classification and the names of seniority employees then on layoff.

Section (23) - Preferences in Job Assignments (other than Daily)

Supervision in the case of giving preference in job assignment within a classification shall give first consideration to the employee with the greatest length of service in that classification provided such employee is able to satisfactorily perform the work to be done. Section (24) - Promotions

Supervision in the case of promotion from one classification to another shall give first consideration to the employee possessing the required license for the greatest period of time with the Company, provided, however, that such employee is able to satisfactorily perform the work to be done.

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LAYOFF AND RECALL

Section (25) - Temporary Layoffs

(a) Notwithstanding Sections (27) and (28), when there is a temporary layoff that is a reduction in force for a definite period of time, employees in the bargaining unit, according to classification and ability to satisfactorily perform the work to be done, will be laid off as follows:

(i) Probationary employees will be laid off;

(ii) Employees with less than one (1) year of seniority will be laid off according to seniority;

(iii) Employees with one (1) year or more of seniority will be laid off in the inverse or descending order of their seniority with the most senior employee being laid off first. They will be advised of the expected duration of the layoff and their scheduled return date. However, such employees may elect to remain at work and, if able to perform the available work, will be permitted to do so in the same seniority order up to the number of employees required;

(iv) If the expected duration of the temporary layoff is subsequently extended to a later but definite date, employees laid off pursuant to subsection (iii) above will be afforded the option of returning to work on the date originally scheduled or remaining on layoff for the duration of the extended period. An employee who elects to return on the originally scheduled date will displace the junior employee in the classification in the bargaining unit;

(v) (a) If it becomes necessary to recall employees laid off under subsection (iii) above prior to the date originally planned, they will be recalled in the ascending order of their seniority with the most junior employee in the classification in the bargaining unit being recalled first;

(b) If, after employees are temporarily laid off under subsection (iii), it is determined that the temporary layoff will be extended for an indefinite period of time, the work force in the bargaining unit, including those employees on temporary layoff, will be adjusted within ten (10) working days in accordance with Section (26);

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(vi) If the duration of a temporary layoff is expected to exceed ten (10) working days, the Union will be so notified and may request management to waive the Temporary Layoff provisions set forth in this Section (25). If management so agrees, the working force will be reduced according to the Layoff provisions as set forth in Section (26). Either of such requests shall be made in writing within twenty-four (24) hours of the time the Union is notified of the layoff.

(b) For purposes of this Section, a senior employee may take the layoff if there is an available employee with the required ticket but less seniority than the former who can satisfactorily perform the work to be done.

(c) For purposes of Section (25) a temporary layoff and extensions thereof shall not exceed eight (8) weeks unless the parties mutually agree to a further extension. Failing such mutual agreement, upon the expiration of eight (8) weeks the working force will be reduced according to the layoff provisions as set forth in Section (26).

(d) If the Union believes that in a particular situation the application of the Temporary Layoff provisions expressed in Section (25) would result in undue hardships or disruptions among seniority employees, the Union may, upon request, discuss alternative approaches with a designated member of management. The Union assures the Company that any deviation from the expressed language of Section (25) shall comply with all legal and contractual provisions, be without precedent, and must result in the maintenance of an experienced and qualified workforce capable of assuring the uninterrupted and efficient operation of the Company's business. The Union further assures the Company that no grievance shall be filed with regard to any such deviation made upon the request of the Union.

(e) Effective with the 2009 income tax year, the company agrees to reimburse employees who are required to rebate Employment Insurance Benefits. In consideration of such rebates, only the earnings from TransAlta will be considered in calculating any such rebate.

Section (26) - Layoff and Recall

(a) In the event of a reduction in force within the bargaining unit, employees with the greatest seniority shall be laid off last, provided they are able to satisfactorily perform the available work to be done.

(b) If the application of (a) above results in the displacement of a non-ticketed employee by an employee who possesses a ticket, then the latter shall be paid at the current rate of the non-ticketed classification.

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(c) Such laid off employees shall be recalled in the reverse order in which they were laid off; that is, last out, first in, provided they are able to satisfactorily perform the work to be done.

Section (27) - Upgrade Skills

A laid off employee, who within one (1) year of the date of layoff submits a certificate of qualification to verify that she/he has upgraded his/her skills, shall be recalled and displace an employee with the least seniority possessing the same license provided that she/he is able to satisfactorily perform the work to be done. Section (28) - Application of Bargaining-Unit Wide Seniority

In the event that the application of bargaining-unit wide seniority sections of this Agreement would result in the displacement of a non-ticketed employee by an employee on a ticketed classification, then the latter shall have the option to waive such right of displacement. Section (29) - Seniority of Representatives

Notwithstanding their seniority, Committee Members shall, in the event of a layoff, be retained or returned to work when work which they are able to perform is available in their jurisdiction. Section (30) - Seniority of Employees Promoted to Salary

An employee who is transferred to a supervisory position over the bargaining unit after the effective date of this Agreement and who is thereafter transferred again to a position included in the bargaining unit, shall return to the bargaining unit with a seniority date that represents the seniority he/she had accumulated immediately prior to his/her transfer out of the bargaining unit. The Employee may return to a bargaining unit vacancy with shelved seniority for a period up to six (6) months.

DISTRIBUTION OF OVERTIME

Section (31)

(a) Overtime will be evenly distributed where reasonably possible among all employees provided they are able to satisfactorily perform such work; provided also in the event an employee voluntarily misses his/her turn at such overtime, he/she shall be considered as having worked his/her turn insofar as distribution of such overtime is concerned.

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(b) Whenever the TransAlta Manager or his/her designate determines that an employee is to be called in for overtime and the time of such need is within four (4) hours of the end of the shift working at the time, then the employee with the least overtime hours on the following shift who is available and who normally performs such work shall be called in.

(c) In all other cases the low overtime person in the plant who normally performs such work shall be called.

LEAVE OF ABSENCE

Section (32)

(a) Any employee in the bargaining unit covered by Section (2) of this Agreement who is:

(i) Appointed, selected or elected to work for the Local Union; or

(ii) Appointed or elected to a position on the staff of the Canadian Union,

may be granted a leave of absence by the Company for a period of two (2) years subject to renewal on application to the Company for a further period of two (2) years.

(b) A leave of absence for a period not to exceed one (1) year without loss of seniority may be granted to an employee in order to attend a recognized college, university, or trade or technical school full time, provided the course of instruction is related to the employee's employment opportunities with the Company. A request for a leave of absence to attend a primary or secondary school will be regarded as being within the intent of this subsection (c) and the schooling will be regarded as being related to the employee's employment opportunities with the Company. Before receiving the leave or an extension thereof, the employee shall submit to the Company satisfactory evidence that the college, university or school has accepted him/her as a student, and on the expiration of each semester or other school term, shall submit proof of attendance during such term. Such leaves may be extended for additional periods not to exceed one (1) year each.

(c) Any employee with at least one (1) year's seniority who is elected to public office (municipal, provincial or federal) shall be granted a leave of absence for a period of time necessary to fulfill the duties of his/her office during his/her first term. Additional leave(s) of absence for service in elective public office may be granted upon written application by the employee. While on such leave(s) of absence an employee shall accumulate seniority.

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(d) A leave of absence for a reasonable period not to exceed one (1) year will be granted without loss of seniority for good cause, such as personal illness or accident, pregnancy, death of serious illness in the immediate family, jury duty, or military reserve training, and such leave may be extended for like cause.

(e) A leave of absence may be granted for a period not to exceed 120 days. The Company shall not unreasonably withhold permission for such leave request.

(f) Upon return from any leave of absence, the employee shall be re-employed at work generally similar to that which she/he did last prior to the leave of absence and with seniority accumulated throughout such leave.

(g) Any request for a leave of absence as provided for herein shall be submitted in writing to the TransAlta Manager.

VACATION PLAN

Section (33) - Payment Schedules

Payment Schedules

(a) During June of each year, the Company will make a Basic Vacation Payment and provide a Scheduled Paid Absence Allowance and a Paid Absence Allowance to eligible hourly employees who have worked for at least twenty-six (26) weeks in the vacation eligibility year (the year including the pay period in which May 31 occurs and the preceding 51 weeks) as follows:

Seniority on June 30th of the Vacation Eligibility Year

Basic Vacation Payment

Scheduled Paid Absence Allowance

60 hours

Paid Absence Allowance

1 but less than 3 years 40 hours 60 hours 70 hours 3 but less than 5 years

60 hours 60 hours 70 hours

5 but less than 10 years






20 years or more


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The number of hours of the Basic Vacation Payment, Scheduled Paid Absence Allowance and Paid Absence Allowance to which an eligible employee shall be entitled shall be based on the employee's seniority on June 30 of the vacation eligibility year and the number of pay weeks during which she/he worked during the eligibility year. The Company shall schedule the eligible employee’s Scheduled Paid Absence Allowance days if the employee chooses not to submit his/her preference in the SPAA booking round. No less than Ten (10) or eight (8) hour units (depending on regular shift 8 or 10 hrs) will be consecutively scheduled for maintenance specialists. No less than twenty-four (24) consecutive hours will be scheduled by Operations. There shall be no trading or switching of Scheduled Paid Absence Allowance time off. An eligible employee may request a Paid Absence Allowance on a first come, first served basis after the scheduling period (section 35). Where employee preferences cannot be accommodated or where employee requests for Paid Absence Allowance are not made in a timely manner, the Company reserves the right to assign Paid Absence Allowance as it sees fit.

(a) An eligible employee shall be entitled to a percentage of the above Basic Vacation Payment, Scheduled Paid Absence Allowance and Paid Absence Allowance as follows:

Weeks Worked in the Vacation Eligibility Year

Percentage of Payment

26 or more 100%

25 96% 24 92% 23 88% 22 84% 21 80% 20 76% 19 73% 18 69% 17 65% 16 61% 15 57%

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14 13

53% 50%

(b) A seniority employee with less than one (1) year of seniority on June 30 of the vacation eligibility year who has worked for at least 26 weeks in the vacation eligibility year will be eligible for a forty (40) hour Basic Vacation Payment. A seniority employee who has worked at least 13 but less than 26 weeks shall be entitled to a Basic Vacation Payment according to the following table:



26 or more 100%

25 96% 24 92% 23 88% 22 84% 21 80% 20 76% 19 73% 18 69% 17 65% 16 61% 15 57% 14 13

53% 50%

(c) The above Basic Vacation Payments will be computed at the employee's straight-time hourly rate effective the beginning of the first pay period beginning on or after June 1 (or if off the active hourly payroll, at the rate for the last day worked) of each year during the term of this Agreement, exclusive of overtime premium but including shift premium, plus the then current Cost-of-Living Allowance. Basic payment in lieu of vacation with pay entitlement shall be paid to eligible employees in June of each year; provided, however, that an employee may elect to be paid all or part of his/her basic payment in lieu of vacation with pay at the time she/he takes his/her vacation leave of absence, computed as set forth above by indicating this election on his/her vacation request form.

(i) Payments from an employee's Scheduled Paid Absence Allowance and Paid Absence Allowance because of absence or because of termination of his/her employment by death, retirement or otherwise, shall be

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computed at the employee's straight-time hourly rate on his/her last day worked exclusive of overtime premium, but including shift premium and the amount of any Cost-of-Living Allowance then in effect.

(ii) Payment of the unused portion of the Scheduled Paid Absence Allowance and Paid Absence Allowance shall be computed in the same manner and at the same time as the employee's Basic Vacation Payment for the next vacation year.

(iii) Employees who are otherwise eligible will receive shift premium for Basic Vacation Payment based on the proportion of the total time worked to that which is worked for the second and third shift during the vacation eligibility year.

(d) (i) An employee may use the hours credited to his/her Paid Absence Allowance in units of no less than two (2) hours for excused absence because of illness when not receiving Sickness and Accident insurance; or absence that his/her supervisor has excused because of personal business; or at the time of an approved leave of absence as an extension of his/her vacation.

Any portion of an employee's Paid Absence Allowance that the employee does not use in the form of paid absences during the vacation year (the pay period following the pay period in which May 31 occurs and the next 51 weeks) will be paid to him/her (computed pursuant to subsection (c) above) at the time the Company makes its vacation payment in the following payment year. Employees may also elect to reserve up to 2 shifts, which may be carried over into the new year. These carried over PAAs may be used as any other PAA until March 1st of the new year. However, any request as described in Section (35) would take precedent over these carried over PAAs and could result in the cancellation of such a day off.

(ii) An employee permanently separated or promoted to a salaried:

Classification shall receive any remaining unused Scheduled Paid Absence Allowance and Paid Absence Allowance within thirty (30) days after the Company receives notification of his/her separation or promotion.

(e) An employee disabled from work by compensable injury or legal occupational disease shall accrue credit toward pay weeks worked for pay weeks she/he would otherwise have been scheduled to work during the period of compensable disability, provided such employee works at least one week in the eligibility year.

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(f) Employees who submit a written request for payment of deferred Paid Absence Allowance at least one week in advance of the requested payment date will receive the full amount of the employee's remaining Paid Absence Allowance.

Section (34)- Eligibility

(a) An employee will be considered eligible for payments under Section (33) if she/he has worked for the Company for at least thirteen (13) weeks in the vacation eligibility year, and;

(i) is on the active hourly payroll on June 30 of the vacation eligibility year. If she/he has been promoted to a salaried classification subsequent to May 31 of the vacation eligibility year but prior to the established date for distribution of basic vacation payment in lieu of cheques, she/he may be granted a vacation under the appropriate salaried vacation plan rather than the hourly vacation basic pay; or

(ii) is not on the active hourly payroll on May 31 of the vacation eligibility year because of sickness or injury, layoff or leave of absence.

(b) A salaried employee transferred to an hourly job or laid off from a salaried position and reinstated to an hourly job, who is otherwise eligible but does not have at least one (1) year of seniority under this Agreement on June 30 of the vacation eligibility year, shall receive payments under Section (33) based on his/her Company service and the total number of pay weeks worked in the vacation eligibility year, less any payment previously received for a salaried vacation earned in the current and/or preceding calendar year.

(c) Employees who, prior to June 30 of the vacation eligibility year, have died or have retired under the Pension Plan or retired at age sixty-five (65) or their estates or estates of deceased retired employees, shall receive payments under Section (33) that the employees were otherwise eligible to receive except that an employee who retires or is retired under the provisions of the Pension Plan and who, but for his/her retirement, would have at least one (1) year's seniority as of June 30 of the vacation eligibility year but who has not worked in at least thirteen (13) weeks in the vacation eligibility year shall receive for each of the weeks she/he worked during such year one twenty-sixth (1/26) of the maximum payments to which his/her seniority as of June 30 of the vacation eligibility year would otherwise have entitled him/her under Section (33).

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Section (35) - Timing of Vacation

Vacation will be granted at such times during the year as are suitable considering both the wishes of the employees and the efficient operation of the business.

Employees must take a minimum two (2) weeks vacation in each calendar year. If an employee’s allotment is less than eighty hours (80), the employee must schedule all their vacation hours and supplement the balance of their vacation by using PAA, Employees working twelve (12) hour shifts on a seven (7) day operation, will include a Saturday and a Sunday as part of the two (2) weeks vacation described above. SPAA Each employee shall schedule (sixty) 60 hours “Scheduled Paid Absence Allowance” throughout the year, excluding the June 15th – Sept 15th scheduling period. Employees working twelve (12) hour shifts on a seven (7) day operation will include a Saturday and a Sunday as part of the 60 hour SPAA described above. If employees elect not to self-schedule the 60 hours of “Scheduled Paid Absence Allowance” the company will schedule these 60 hours ( or remaining) for the employee. PAA The PAA allotment will be scheduled following vacation and SPAA as indicated in subsection (c) below Vacation / SPAA / PAA Preferences

(a) By November 1st of each year, the company will post notice, advising employees to specify above two (2) weeks’ vacation preference to be granted by seniority. By November 15th of each year, employees will specify their preference for remaining vacation. Any employee indicating his/her preference after these dates will be on a first come first serve basis

(b) By December 1st of each year, the company will post a notice, advising employees to specify SPAA (outside of June 15th to September 15th) preferences to be granted by seniority. The employee will schedule their 60 SPAA hours in these vacant dates. If the employee has not scheduled these days by December 15th, the company will schedule these dates for them.

(c) By January 1st of each year, the company will post a notice, advising employees to specify PAA preferences to be granted by seniority.

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(d) By January 15th of each year, employees that are entitled to bank designated holidays will submit which days they wish to receive as pay on the holiday and which holiday they wish to bank to be used at a later date as described in Section (36).

(e) Notwithstanding designated holidays that have been booked as days off in previous rounds, by January 15th employees who wish to not work on specific holidays will submit their choice of holidays they are scheduled to work as days off, the relief operator regardless of seniority does not qualify to make such a selection. The operator holding the Relief Operator position will be deemed off unless another operator elects to take the designated holiday off. Preference for taking this time off will be given by seniority.

(f) This open period ends on January 31st. After which, all time off requests will be on a first come first serve basis.

(g) The Company will endeavor where reasonably possible to provide advance notice of any rearrangement of employee vacation schedules. In making any decision with regard to the rearrangement of employee vacation schedules, management will give due respect to the requirements of the plant and the desires of the employee(s). The rearrangement of employee vacation schedules would be restricted to situations of emergency, which would interfere with the maintenance of uninterrupted and efficient plant operations.

(h) Complaints arising in connection with the rearrangement of employee vacation schedules may be discussed with the TransAlta Manager or his/her designate.

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HOLIDAY PAY

Section (36) - Holidays Designated

Each employee will be paid eight (8) hours pay at his/her regular straight-time hourly rate (exclusive of overtime premium but including shift premium) for any of the following holidays, namely; Designated Holidays December 22, 2017 Christmas Holiday Period December 25, 2017 Christmas Holiday Period December 26, 2017 Christmas Holiday Period December 27, 2017 Christmas Holiday Period December 28, 2017 Christmas Holiday Period December 29, 2017 Christmas Holiday Period Thursday, January 1, 2018 Christmas Holiday Period Friday, March 30, 2018 Good Friday Monday, April 2, 2018 Easter Monday Friday, May 18, 2018 Friday before Victoria Day Monday, May 21, 2018 Victoria Day Monday, July 2, 2018 Canada Day Monday, August 6, 2018 Civic Holiday Friday, August 31, 2018 Friday before Labour Day Monday, September 3, 2018 Labour Day Monday, October 8, 2018 Thanksgiving Day December 24, 2018 Christmas Holiday Period December 25, 2018 Christmas Holiday Period December 26, 2018 Christmas Holiday Period December 27, 2018 Christmas Holiday Period December 28, 2018 Christmas Holiday Period December 31, 2018 Christmas Holiday Period Friday, January 1, 2019 Christmas Holiday Period Friday, April 19, 2019 Good Friday Monday, April 22, 2019 Easter Monday Friday, May 17, 2019 Friday before Victoria Day Monday, May 20, 2019 Victoria Day Friday, July 1, 2019 Canada Day Monday, August 5, 2019 Civic Holiday Friday, August 30, 2019 Friday before Labour Day Monday, September 2, 2019 Labour Day Monday, October 14, 2019 Thanksgiving Day December 23, 2019 Christmas Holiday Period December 24, 2019 Christmas Holiday Period December 25, 2019 Christmas Holiday Period December 26, 2019 Christmas Holiday Period December 27, 2019 Christmas Holiday Period December 30, 2019 Christmas Holiday Period

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December 31, 2019 Christmas Holiday Period January 1, 2020 Christmas Holiday Period Friday, April 10, 2020 Good Friday Monday, April 13, 2020 Easter Monday Friday, May 15, 2020 Friday before Victoria Day Monday, May 18, 2020 Victoria Day Monday, June 29, 2020 Canada Day Monday, August 3, 2020 Civic Holiday Friday, September 4, 2020 Friday before Labour Day Monday, September 7, 2020 Labour Day Monday, October 12, 2020 Thanksgiving Day Provided the employee has seniority as of the date of such holiday and qualifies under the following rules:

(a) The employee has worked his/her last scheduled working day within one (1) week immediately before and his/her next scheduled working day after such holiday.

(b) The employee has worked within one (1) week immediately before the day on which such holiday falls but is absent from work on the last scheduled working day before or on his/her next scheduled working day after such holiday and furnishes satisfactory reasons to his/her foreman for such absence.

(c) The employee is on leave of absence, granted in writing, and returns to work following the holiday but during the calendar week in which the holiday fell.

(d) The employee is absent on sick leave or layoff due to reduction in force and such absence or layoff has commenced within thirty (30) calendar days prior to the holiday, except that an employee on sick leave and in receipt of Workers' Compensation benefits for such holiday shall not qualify for the holiday.

(e) An employee who is on indefinite layoff and otherwise eligible for holiday pay will be paid his/her holiday pay without being required to work his/her next scheduled working day after such holiday.

(f) In the case of holidays which fall in the holiday period starting December 23 through the following January 1, the employee must have worked the last scheduled working day prior to and the next scheduled working day after such holiday period.

g) If a designated holiday falls on a twelve (12) hour, seven (7) day operation employees regular scheduled day of work, the employee will work as scheduled unless his/her day off request has been approved. Designated holiday postings are described in Section (35).

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h) If a designated holiday falls on an employee’s regular scheduled day off of work, the employee may elect to either take the eight (8) hours pay or bank up to three (3) holidays to be utilised and take up to two (2) days off as described in Section (35).

Section (37) - Holiday Pay Eligibility

(a) An employee who requests and is granted Paid Absence Allowance for the balance of a week in which a regular paid holiday falls will be deemed to meet the requirements of Section (36)(c) of the Agreement. This will apply only where the employee has sufficient Paid Absence Allowance available to blank out the entire week except for the holiday.

(b) 1. A seniority employee who requests and is granted a vacation leave of absence which includes the last scheduled working day prior to the Christmas Holiday Period and who also requests and is granted a vacation leave of absence which includes the first scheduled working day after such Christmas Holiday Period, shall, if otherwise eligible, receive pay for the holidays which fall in such Christmas Holiday Period.

2. A seniority employee excused by said employee's supervisor from work on the last scheduled working day prior to or on the next scheduled working day after a Christmas Holiday Period, or both, shall, if otherwise eligible, receive pay for the holidays which fall in that Christmas Holiday Period.

3. A seniority employee on sick leave of absence who is released by

his/her doctor to return to work during a Christmas Holiday Period, shall, if otherwise eligible, receive pay for the holidays in the Christmas Holiday Period failing on or after the date the employee notifies the plant of availability for work and, provided further that said employee presents satisfactory medical evidence of availability to work on such day upon return to work.

4. A seniority employee on a personal leave of absence which expires

during a Christmas Holiday Period, shall, if otherwise eligible, receive pay for the holidays in the Christmas Holiday Period which fall (1) on or after the expiration date of such leave or (2) on and after the date the employee notifies the plant of availability for work, whichever is later.

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5. A seniority employee absent without excuse on either the last scheduled working day prior to or the next scheduled working day after a Christmas Holiday Period shall be ineligible for pay for two (2) of the holidays in the Christmas Holiday Period, but shall, if otherwise eligible, receive pay for the remaining holidays in the Christmas Holiday Period.

(c) Notwithstanding the provisions of Section (36) of the Agreement, a seniority employee who is temporarily or indefinitely laid off during the fourth work week prior to a week in which one or more of the holidays in the Christmas Holiday Period falls, and who worked the last scheduled working day prior to such layoff, shall, if otherwise eligible, receive pay for the holidays falling during such Christmas Holiday Period. A seniority employee who is laid off during the fifth, sixth or seventh work week prior to a week in which one or more of the holidays in the Christmas Holiday Period falls and who worked the last scheduled working day prior to such layoff shall, if otherwise eligible, receive pay for one-half of the holidays falling during such Christmas Holiday Period. An employee temporarily laid off shall receive pay for such holidays following their return to work from such layoff. An employee indefinitely laid off shall receive pay for such holidays on the second payday following the Christmas Holiday Period.

In the circumstances where an employee does not have sufficient Paid Absence Allowance to blank out the week of the holiday, she/he will be deemed to satisfy the requirements of this Section if she/he is granted a minimum of twenty-four (24) hours Paid Absence Allowance which, together with excused absence, does enable him/her to blank out the week of the holiday. Section (38) - Failure to Work on a Holiday

Any employee who agrees to work on any such holiday and fails to do so shall not be eligible for any pay therefore unless she/he furnishes to the TransAlta Manager or his/her designate satisfactory reasons for his/her absence.

Section (39) - Holidays Falling on Sunday

When any of the holidays designated in Section (36) falls on Sunday and the day following is observed as a holiday by the Government of Canada, such day shall be paid as the holiday. Section (40) - Employees on Leave of Absence for Jury Duty or Vacation

When any of the holidays designated in Section (36) falls within an approved leave of absence for jury duty, or while the employee is absent on vacation under the established vacation plan, she/he shall receive pay for such holiday.

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Section (41) - Jury Duty

(a) Any employee with seniority who is called to and reports for jury duty (including coroners' juries and duty required in connection with the Ontario Public Institutions Inspection Act) shall be paid an amount equal to the employee's straight-time hourly rate exclusive of shift, overtime, and any other premiums, on the last day worked multiplied by eight (8) or the number of hours less than eight (8) that the employee otherwise would have been scheduled to work for the Company on the day for which the payment is to be made less the daily jury duty fee (not including travel allowances or reimbursements of expenses) paid the employee by the court in which the employee serves.

(b) In the event an employee is summoned for jury duty on a day for which she/he is scheduled to work shift, the employee shall be excused from said scheduled shift and shall receive an amount equal to the employee's straight-time hourly rate exclusive of shift, overtime and any other premiums, on the last day worked multiplied by twelve (12) or the number of hours less than twelve (12) that the employee otherwise would have been scheduled to work for the Company.

(c) In order to receive payment under this Section, an employee must give the Company prior notice that the employee has been summoned for jury duty and must furnish satisfactory evidence that jury duty was performed on the days for which the employee claims such payment. Any employee who is called to and reports for an interview or an examination to qualify for selection to a jury shall be considered to have performed jury duty and shall qualify for jury duty pay if otherwise eligible as provided herein.

(d) This Section (43) is not applicable to an employee who, without being summoned, volunteers for jury duty.

Section (42) - Bereavement Pay

(a) When a death occurs in the employee's immediate family, i.e. spouse, parent, son, daughter, sister or brother' step-parent, grandparent, step-parent or grandparent of current spouse, step-child, grandchild, step-brother, step-sister, half-brother, half-sister, sister-in-law, brother-in-law, son-in-law or daughter-in-law, mother-in-law, father-in-law a seniority employee, on request, will be excused and, after making written application therefore, receive payment for up to 32 hours (excluding Saturdays, Sundays and holidays, or, in the case of seven-day operations, excluding regular off days and holidays) during the period commencing with the date of death and ending with the second calendar day after the day of the funeral.

(b) The employee shall receive bereavement pay and be entitled to take four (4) days off. Reasonable additional time off without pay may also be available.

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(c) If a more distant relative dies, time off with pay is also available to attend the funeral. Employees may take up to four hours if the funeral is in the vicinity or up to one day if out-of-town travel is required.

(d) If a co-worker or close friend dies, employees may take up to four hours off with pay to attend the funeral.

WORKING HOURS

Section (43) - Call-in Pay/Standby/Sleep time

(a) An employee reporting for work on instructions of the Company but for whom no work at his/her regular job is available will be offered at least four (4) hours' employment in other work at the employee's regular hourly rate or, at the Company's option, be paid four (4) hours' time at his/her regular hourly rate. This provision shall not apply when such lack of work is due to a labour dispute, fire, flood, or other cause beyond the control of the Company.

(b) Maintenance specialists on stand-by shall receive one and one-half (1.5) hour's pay for each day on which the employee is scheduled to be on standby on Monday to Friday inclusive, and two (2) hours' pay if the employee is scheduled to be on standby on Saturday, Sunday, or on a holiday.

(c) Maintenance specialists who are successful in resolving problems by telephone, thereby avoiding a call in for that problem, shall receive one (1) hour’s pay. (d) An eligible employee for sleep time when over time is worked within nine (9) hours prior to his scheduled shift. Sleep time is equal to the nine (9) hours of time away from work from the time the person leaves the job until he returns. The hours of the persons scheduled shifts that fall within the sleep time where the person is not at work shall be paid at the normal straight time rates as paid time off.

Section (44) – Hours - Overtime - Shift - Premium

The work week shall commence effective 7:00 a.m. on Mondays. A. Maintenance

(a) The Company's regular work week for maintenance is presently a forty (40) hour week consisting of either ten (10) hour or eight (8) hour shifts. Where the company can reasonably provide two (2) man coverage on weekdays (during high production), the Company will endeavor to schedule one (1), eight (8) hour shift week and two (2), ten (10) hour shift weeks and to rotate maintenance staff through such scheduling.

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(b) The Company will pay time and one-half the straight-time hourly rate for:

(i) For time worked in excess of eight (8) hours in any continuous twenty-four (24) hour period, beginning with the starting time of the employee's shift; and

(c) The Company will pay double the straight-time hourly rate for:

(i) time worked on Saturday and Sunday; and

(ii) time worked on any of those holidays designated in Section (36).

(d) The allowance of time and one-half or double time pay for any hour excludes that hour from consideration for premium payment on any other basis, thus eliminating double payment for overtime, Saturday, Sunday or holiday time.

(e) The Company will pay a shift premium of ten (10) percent of the straight-time hourly rate for shifts other than the day shift.

B. Operators

(a) A normal shift shall be twelve (12) hours and an average of forty (40) hours shall constitute a week's work.

(b) The starting time of the day shift shall be arranged between 6:00 a.m. and 8:00 a.m. and the night shift from 6:00 p.m. to 8:00 p.m.

(c) An employee shall be given at least three (3) calendar days' notice if she/he is required to change from one shift to another under the standard shift arrangements.

(d) For any employees working twelve (12) hour shifts, the Company will pay a ten per cent (10%) premium for work on the night shift.

(e) The Company will pay time and one-half the straight-time hourly rate for:

(i) time worked in excess of twelve (12) hours in any continuous twenty-four (24) hour period beginning with the starting time of the employee's shift; and

(ii) time worked on Saturday (excluding days observed as holidays designated in Section 36).

(iii) time worked in excess of forty (40) hours in the Monday – Friday period.

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(iv) any non-premium time shift posted for less than 24 hours.

(f) The Company will pay double the straight time hourly rate for:

(i) time worked on Sunday; and

(ii) time worked on any of those holidays designated in Section 38.

(iii) Time worked on Saturday outside of the regular operations schedule and outside of regular scheduled duties and responsibilities.

(g) The allowance of time and one-half or double time pay for any hour excludes that hour from consideration for premium payment on any other basis, thus eliminating double time payment for overtime, Saturday, Sunday or holiday time.

(h) Sickness and Accident benefit payments shall also be formulated by utilizing a forty (40) hour work week basis (forty-two (42) hour work week for Operators).

(i) When an employee's scheduled day off is a holiday, she/he shall be paid eight (8) hours' pay at his/her regular straight-time hourly rate, provided she/he has complied with the provisions as outlined within Section (36) - Holidays Designated and Section (37) -Holiday Pay Eligibility.

WAGES

Section (45) – Cost-of-Living Allowance All employees in the bargaining unit covered by this Agreement shall be subject to the following cost-of-living formula determining the cost-of-living allowance as set forth below: (a) Effective October 19, 2017 and thereafter during the period of this Agreement, adjustments in the Cost-of-Living Allowance shall be made on the following dates and in each case, shall be based on the following Consumer Price Indexes: Effective at Beginning of First Pay Period Commencing On or After

Based On Three-Month Average Of The Consumer Price Indexes For:

September 2020 May, June July 2020 (b) In determining the three-month average of the indexes for a specific period, the computed average shall be rounded to the nearest 0.1 Index Point. In no event will a

34

decline in the three month average Consumer Price Index below 120.1 (2002 = 100 Base) provide the basis for the reduction in the wage scale by job classification. (i) Effective beginning of the pay period commencing on or after receipt of notice

of ratification but after the application of the wage increases provided in Section (48), $1.22 shall be deducted from the $1.27 Cost-of-Living Allowance in effect immediately prior to that date and shall be added to the full base rate for each classification.

(ii) The amount of the Cost-of-Living Allowance effective the beginning of the pay

period commencing on or after receipt of notice of ratification and ending November 30, 2017, shall be $0.05 per hour.

(ii) Effective December 1, 2017, the Allowance shall be determined in

accordance with the following table:

Three-Month Average Combined Consumer Price Index

Cost of Living Allowance

119.9 or less None

120.0 2 ¢ per hour 120.1 5 ¢ per hour 120.2 8 ¢ per hour 120.3 11¢ per hour 120.4 14 ¢ per hour 120.5 16 ¢ per hour 120.6 19 ¢ per hour 120.7 22 ¢ per hour 120.8 24 ¢ per hour 120.9 27 ¢ per hour

And so forth with one cent (1 ¢) adjustment for each .038 point change in the Average Index, with the base year being 2020 = 100. (c) The amount of any Cost-of-Living Allowance in effect at the time shall be included in computing overtime pay, shift premium, holiday pay, call-in pay, stand-by pay, jury duty pay, bereavement pay, paid absence allowance payments, and vacation pay. (d) In the event that Statistics Canada does not issue the appropriate Consumer Price Index on or before the beginning of one of the pay periods referred to in Subsection (a), any adjustment in the allowance required by such appropriate Index shall be effective at the beginning of the first pay period after receipt of the Index.

35

(e) No adjustments, retroactive or otherwise, shall be made due to any revision that may later be made in the published figures used in the calculation of the Consumer Price Index for any month on the basis of which the allowance has been determined. (f) The continuance of the Cost-of-Living Allowance shall be contingent upon the availability of the Consumer Price Index referred to in subsection (b) published by Statistics Canada and calculated on the same basis as the Index for August, 1996, unless otherwise agreed upon by the parties. (g) The Cost-of-Living Allowance payable under the provisions of this Section shall be included in an employee’s weekly pay deposit. (h) Pay adjustments made in a Cost-of-Living Allowance period applicable to any previous Cost-of-Living Allowance period will include the allowance applicable during the period to which the adjustments relate. (i) The Company shall prepare a notification letter to the Union setting forth the Consumer Price Index for each of the three month that form the basis for an adjustment, and the average of those three months, rounded to the nearest 0.1 index point using the engineering Method of Rounding described in subsection (j) This letter will be prepared and sent to the Union after publication of the appropriate Consumer Price Indexes for the third month used for each adjustment period in accordance with Section 45, subsection (a) of the Agreement. (j) The Engineering method of rounding shall apply to the determination of the three month average of this Consumer Price Index.

(i) If the leftmost of the digits discarded is less than 5, the preceding digit is not affected. For example, when rounding to four digits, 130.646 becomes 130.6.

(ii) If the leftmost of the digits discarded is greater than 5, or if 5 is followed by

digits, not all of which are zero, the preceding digit is increased by one. For example, when rounding to four digits, 130.557 becomes 130.6.

(iii) If the leftmost of the digits discarded is 5, followed by zero, the

preceding digit is increased by one if it is odd and remains unchanged if it is even. The number is thus rounded in such a manner that the last digit retained is even. For example, when rounding to four digits, 130.5500 becomes 130.6 and 130.6500 becomes 130.6.

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Section (45) - Wage Increases

Wage rates application to the respective classifications are set forth in Appendix "A" to this Agreement.

WAGE PROGRESSION

Section (46)

(a) New employees shall be hired at a rate of sixty cents (60¢) below the full base rate of the job classification and shall receive an increase of twenty-five cents (25¢) at the expiration of thirty (30) days of employment. Every new employee who is retained by the Company on the job classification shall receive an increase of thirty-five cents (35¢) to the full base rate at the expiration of ninety (90) days of employment. This Section does not apply to employees on ticketed job classifications.

(b) When a seniority employee is promoted or transferred to a higher paid classification, the employee will be paid the full base rate of the new classification.

VOLUNTARY TERMINATION, INSURANCE, HEALTH CARE AND RE-LOCATION ALLOWANCE

Section (47)

The following agreements between the Company and the Union are incorporated and made a part of this Agreement. Exhibit A: Voluntary Termination of Employment Plan Exhibit B: Life and Disability Insurance Exhibit C: Relocation Allowance Plan Exhibit D: Health Care Plan

PAYMENT FOR DAY OF INJURY

Section (48)

(a) An employee who receives Workers' Compensation will be paid by the Company for the balance of the shift on which the injury occurred.

(b) If an employee is injured on the job, she/he will be paid for the balance of the shift on which she/he has been sent home or to an outside hospital or outside

37

doctor by a medical officer of the Company or other member of management authorized to do so, because of such injury.

(c) An employee who is injured at work and who, during his/her shift, is sent to a hospital for emergency treatment by a medical officer of the Company or other member of management authorized to do so will be paid at the appropriate rate for such time as is approved by the Company medical officer. Any time paid for will not exceed two (2) hours beyond the end of the employee's regular work shift.

PAY SHORTAGE ERRORS

Section (49)

The Company will arrange for an adjustment, which will be paid within three business days.

CONCLUSION

Section (50) - Notice

Notices required to be given under the provisions of this Agreement shall be in writing and shall be sufficient if sent by registered mail addressed to the appropriate recipient or if delivered to the appropriate recipient personally. The addresses of the recipients are as follows:

The Union

UNIFOR – Local 444 1855 Turner Road Windsor, Ontario N6W 3K4

The Company

TransAlta Manager Windsor-Essex Cogeneration Plant TransAlta Generation Partnership 2600 Temple Drive Windsor, Ontario N8W 5J5

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Section (51) – Duration of Agreement

Subject to any provision of law or any regulation having the force of law, this Agreement shall be in effect from the 19th day of October, 2017 until the 18th day of October, 2020 and shall thereafter continue for a further period of one (1) year unless sixty (60) days before the expiration date either party shall give written notice to the other party that it desires revision, modification, or termination of this Agreement at its expiration date.

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DATED at Windsor, Ontario, this 19 day of October, 2017 TransAlta Generation Partnership UNIFOR – Local 444

Harry Charles Luc T. Chartier Tammy Clifford Terry Flatt Jeff S.Campbell Dave Cassidy ________________________ Cory Pageau

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APPENDIX "A"

CLASSIFICATIONS AND RATES

TRANSALTA GENERATION PARTNERSHIP

Beginning of Pay Period on or after

receipt of Classification

October 19, 2017 October 19, 2018 October 19, 2019

Operator (2nd class) 49.45 50.32 51.33 Operator (3rd class) 48.36 49.21 50.19

Maintenance Specialist 49.45 50.32 51.33 OMT

(Operator/Maintenance Technician)

53.16 54.22 55.30

-Operator relief (first year student)

39.18 39.87 40.67

-Operator relief (second year student)

42.50 43.24 44.10

Maintenance Specialists will be paid the 3rd Class rate if non-ticketed. Power Engineering co-op students:

The parties agree that power engineer students are to be hired for the purpose of gaining steam time required for the progression to achieve a Power Engineer certificate, the parties also agree that power engineer students are not to be used to displace bargaining group work and there is no entitlement to health care benefits, pension etc.

Students to follow TransAlta student rates.

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LETTERS

Letter 1 - Outside Contracting/Work Ownership

This letter is written to confirm the Company's policy regarding the performance or maintenance of trades work with our own employees and equipment. It is recognized that at times and for varying reasons it is not considered practicable or advisable for certain work to be performed by our own Company. As in the past, the Company must therefore reserve the right to decide how and by whom any work is to be performed and this letter is not to be regarded as affecting that right; however, provided we have the necessary facilities and equipment and can perform the work required with our own work force in a manner that is competitive in terms of cost, quality and within projected time limits, it is our intention and desire to keep such work within the Company. In all cases, except where time and circumstances prevent it, the Company will notify the Union prior to contracting out in order to afford the Union and the company an opportunity to hold advance discussion of the matter before the contract is let. Regular employees from the bargaining unit will have first opportunity to perform work that is to be contracted based on the conditions in the first two paragraphs. The company will not have any outside contractors working in their facilities with any employees on layoff performing work that their employees are capable of performing such tasks. The TransAlta Manager will communicate with union representative prior to awarding contractor work to a unionised contractor or non-unionised contractor in cases of specialised work.

Letter 2 - Supervisors Working

It is the express policy of the Company that supervisory personnel are for the purpose of carrying out supervisory functions and are not expected to displace employees covered by this Agreement. However, a supervisory employee may perform operations where an emergency arises out of unforeseen circumstances which calls for immediate action to avoid interruption of operations for purposes of instruction or training as may be necessary in the discharge of his/her supervisory duties, provided that the act of performing the aforementioned operations in itself does not reduce or affect the hours of work or pay of any employees covered by this Agreement.

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Letter 3 - Tuition Refund

A) The Company will establish and administer a tuition refund program. Tuition refunds are subject to Company approval at all times. Under the program employees will, under such terms and conditions as the Company may from time to time establish, receive a tuition refund not to exceed $3250.00 a calendar year (Including a $250 book allowance) upon completion of an approved educational or training institution during non-working hours while on the active payroll of the Company. The tuition refund, for courses which must be taken in the United States solely because they are not available in Canada, will be paid in United States currency. An arbitrator shall have no jurisdiction over any matter involving the establishment, administration or terms and provision of such a tuition refund program.

B) Dependent Tuition: The Company agrees to implement a dependent

Children Tuition Program. On application this program will reimburse up to $1750.00 per year to eligible children of each regular active employee on proof of enrollment in an accredited Canadian University or Community College.

Letter 4- Use of Past Disciplinary Record

In imposing any discipline on a current charge, management will not take into account any prior infractions which occurred more than one (1) year previously nor impose discipline on an employee for falsification of his/her employment application after a period of twelve (12) months from his/her date of hire.

Letter 5 – Employee Training

It is the Company's intention to provide training at Company expense as new technology is introduced into operations in circumstances in which the Company considers it appropriate to do so. The fact that such training is provided shall not impair the Company's right to decide whether it will do any particular maintenance work with its own employees or let that work to outside contractors. Mandatory training shall take place on an employee’s regular shift wherever practicable.

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Employee-requested training which is approved and paid for by the Company shall be paid at his/her regular hourly rate to a maximum of eight (8) hours per day of actual training. The Company agrees to provide advance notice of mandatory training pursuant to this letter followed by a training matrix. Should legislated mandatory training requirements change, the training matrix will be updated to reflect these changes.

Letter 6 - Health and Safety Representative

The Union may appoint and the Company shall recognize one (1) employee and one (1) alternate who will function as the Union Health & Safety Representative for the term of this Agreement. The Company agrees to respond to all legitimate requests made by the Union Health and Safety Representative in a manner consistent with Company policy and governmental requirements. It is understood that the Union Health and Safety Representative will advise the TransAlta Manager or his/her designate on each occasion when it is necessary for him/her to leave his/her regular job in order to function as the Union Health and Safety Representative. It is further understood that the Health and Safety Representative will be paid only for such time spent in performing his/her functions as occurs during the time when she/he is otherwise scheduled to work.

Letter 7 - Posting Procedure

Whenever a permanent vacancy occurs, the vacancy will be posted for three (3) business days and shall be filled by the qualified applicant with the greatest seniority that can satisfactorily perform the work to be done. The job left vacant by the successful applicant will be posted and filled in the same manner as set forth above as will the resultant vacancy. Management has the right to limit the number of posting to three (3) moves. Where a temporary vacancy occurs, the vacancy will be posted for three (3) business days. The Company may hire a temporary employee to fill the temporary vacancy. If a permanent employee fills the temporary vacancy, the temporary employee will backfill the permanent position. Management has the right to limit temporary vacancy posting to a single move.

Letter 8 - Payment for Safety Shoes

The Company agrees to provide active employees with a three hundred dollar allowance (to be used during the life of this collective agreement) towards the purchase of safety footwear from Company approved sources. An employee who elects to purchase safety footwear in accordance with this understanding shall wear such footwear on the job. In the event where an employee has demonstrated that

44

his footwear has been worn beyond comfort or safety and the allotted funds have been spent, management may authorize the expense of another pair as they would for any other personal protective equipment. It is further understood, that all employees shall use the allowance towards the purchase of “Green Patch” construction safety grade footwear or “Omega Green Patch” construction grade safety footwear, it is also understood that all employees shall wear such footwear on the job. Temporary Part Time employees will be eligible to participate in this program after having worked 30 days. It is understood by the parties that employees hired by the company as vacation replacements, more commonly referred to as “summer students” will not be entitled to participate in this program.

Letter 9 - Altered Scope Assignments

Definition: An altered scope assignment differs from the normal scope of job duties and normally involves an altered level of responsibility than the employee's normal job. This would be the case if an employee took on a role of higher responsibility within his/her own scope of work. The same would be the case if an individual was to perform the role outside of his/her own normal scope of work. The distribution of such responsibilities will adhere to rules to Section (23) and Letter (Chief’s posting) of the collective agreement. When an employee is performing an Altered Scope Assignment, he or she will be paid an additional 15% premium on top of their straight time regular rate. Examples but not limited to the following responsibilities:

• Individual covering as chief operating engineer. • Worker performing lead hand duties. • Worker leading projects. • Worker using a trade ticket outside the normal scope

Letter 10 - Transition and Bridge Benefit

The surviving spouses of employees who elect to take a lump sum pension payment in accordance with the Ontario Pension Benefits Act are eligible for a residual monthly pension benefit and would otherwise meet the eligibility requirements for Transition and/or Bridge Benefits under the Group Life and Disability Insurance Program, will be given the option to choose which benefit to receive. Such surviving spouses who choose to receive benefits under the insurance plan will become eligible

45

again to receive the pension benefit following the exhaustion of eligibility for insurance benefits. Options for a 5, 10 or 15 year pension guarantee will be provided effective October 1, 2009 (single life only; pension will be actuarially equivalent).

Letter 11 - Meetings

Regular meetings will be arranged between the Company and the Union on an as required basis, but not less than every three (3) months. An agenda on workplace matters consisting of, but not limited to, overtime discrepancies, tooling requests, Health & Safety, staffing and matters of mutual concern will be provided one (1) week prior to the meeting. Meetings pertaining to suspensions/discharges of bargaining unit employees will involve the plant chairperson (or designate while on vacation or leave). If the plant chairperson is not on shift, he will be paid as per the call-in allowance provision as per the collective agreement. Any union/management scheduled meetings will also apply under Section (43) – Call-in Pay/Standby/Sleep time of the collective agreement.

Letter 12 – Closure of Operation or Permanent Job Loss

In the event of an operation closure the following will apply:

All employees retirement eligible will receive their pension, plus the retirement allowance of $90,000.00

Employees not retirement eligible will receive PRIMP Benefits if eligible.

Employees will receive a Voluntary Termination of Employment Program (VTEP) benefit based on their years of service, if not eligible for (a) or (b) above.

Permanent job loss, if not accomplished by attrition, will be accomplished by the following procedure:

All non-seniority employees will be placed on layoff.

Employes who are retirement eligible (regular or early) will be offered the option to retire by seniority. The retiring employee will receive the retirement allowance of $90,000.00

Employees will be offered an opportunity to apply for a VTEP benefit if no one chooses retirement.

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Should (a), (b) or (c) above not result in sufficient reduction of employees to the extent of the permanent job loss, then the junior employee by classification will be placed on layoff.

Letter 13 - Earnings Limitation

In the event that any Pension Commission of Ontario or Revenue Canada rulings or legislation have adverse financial implications for either the Company or for retirees, the parties agree that the earnings limitation will be changed to the greater of $22,000 or 50% of the YMPE.

Letter 14 – Defined Benefit Pension Benefit Reduction

The parties agree that if any applicable employee's total pension benefit is reduced because of the application of Section 3 of Article IV ("Maximum allowance lifetime pension for employees retiring after December 31, 1991”) or of Section 5 of Article VII ("Maximum allowable supplementary pension for employees retiring after December 31, 1991"), the Company agrees to pay such employee in one lump sum payment the Actuarial Equivalent of the amount of the required reductions. The payment could be treated as a retiring allowance and rolled tax free into a Registered Retirement Savings Plan ("RRSP"), subject to Revenue Canada regulations. The determination of the Actuarial Equivalent of the reductions shall be made at the time the employee's seniority ceases (or at the earliest of the date of death or age 65 for an employee who is occupationally disabled as defined in Section (1)(c) of Article V), using the calculation basis specified in the Canadian Institute of Actuaries recommendations for the Computation of Transfer Values from Registered Pension Plans (effective September 1, 1993).

Letter 15 - Preferential Hiring

Seniority employees, who are indefinitely laid off as a result of discontinuance of operations or the utilization of new technology without the reasonable likelihood of recall, may apply for preferential hiring opportunities at other TransAlta Generation Partnership plants. It is the intent of the Company to accommodate preferential hiring requests of the employees wherever possible. Applicants who hold a Unifor Journey Person Card will have preferred consideration when hiring externally.

Letter 16 - Crossing Picket Lines - Statement of Policy

In the course of our negotiations, the Union was informed of the Company's position with respect to any picket lines established at the Company's premises. It is the Company's position that as long as there is a subsisting collective agreement

47

between the Company and the Bargaining Agent, an employee covered by such collective agreement has a serious obligation to cross any such picket line. Failure to do so would be a violation of the no-strike provision contained in the collective agreement as well as being contrary to the Labour Relations Act, of Ontario. Refusal to cross a picket line in such circumstances would result in disciplinary action up to and including discharge, unless there were mitigating circumstances such as violence or the immediate threat of violence.

Letter 17 - Operational Understandings

It was agreed during the course of negotiations between the parties that the Company would assume the cost of negotiations, namely, room rental and lost time for up to two (2) bargaining unit members on the Union's Negotiating Committee to a maximum of ten (10) hours of straight time pay in respect of six (6) days of negotiations.

Where the Company is solely responsible for delaying the hearing of a grievance by an arbitrator to a date beyond six (6) months from the date of his/her appointment, the arbitrability of the Union's grievance involved shall not be refused.

An employee working unscheduled overtime shall be reimbursed for up to $30.00 on account of a meal expense incurred during such shift upon provision of the receipt to the Company.

If a death occurs on a Sunday and Monday is a holiday, Tuesday and Wednesday are regular scheduled days of work, Thursday and Friday are regular off days, then the bereavement days off shall be Tuesday, Wednesday and Saturday.

Officers of the Union may be granted time off for Union business, provided advance notice is given to the Company. The Union shall endeavour, where possible, to give at least two days notice of such request and the Company shall not unreasonably withhold permission.

Employees desiring to trade working hours may be permitted to do so, provided there is no additional expense to the Company and the supervisor considers it advisable.

Any problems which may arise as a result of continuing refusal of management to return an employee to work from sick leave of absence shall be handled in accordance with Company policy. In the determination of such policy reference will be made to (a) the use of a third-party doctor to resolve the disagreement between the employee's personal physician and the physician acting for the Company, and (b) the circumstances and extent to which retroactivity may be payable.

48

The Company agrees that employees on vacation or short time illness can call or come in to apply on job postings. She/he is to call back after posting deadline and has up to 14 days to report for work on new posting.

Employees returning from sick leave will resume normal overtime hours recorded if absent less than three months. She/he will assume average overtime hours if absent more than three months, providing it does not result in lowering his/her overtime hours recorded before his/her sick leave.

Letter 18 - Audiometric Evaluation

The Company agrees to ensure that all employees will be submitted to an audiometric evaluation, on a yearly basis. This examination shall be performed during normal working hours and said employees will not incur any loss of wages.

Letter 19 - Job Opportunity

The Company is prepared to institute a job and shift assignment selection process within its Windsor facilities on three (3) occasions during the term of the Collective Agreement. The first selection process shall commence within thirty (30) days after the effective ratification date of the existing Collective Agreement with the second and third process selections being conducted in October of each year. The Company will canvass bargaining unit employees by order of seniority within the classification as to their job and shift assignment preferences. The Company reserves the right to implement the above provisions on a gradual basis so as not to disrupt the operating efficiency of the facilities. The Company and union agree it is a requirement that all stationary engineers are kept current and competent to perform all positions at the plant. The company will from time to time implement a temporary assignment rotation for the purpose of training and skills development. Temporary assignments will not exceed fourteen (14) working days without mutual agreement. The parties hereby agree and acknowledge that this letter is not part of the Collective Agreement nor shall the terms of this letter be precedent-setting for any future negotiations.

Letter 20 - Paid Education Leave Program

The Company agrees to pay to the Union the lump sum of $2,000.00 in each year of the contract in respect of UNIFOR Paid Education Leave Program.

49

Letter 21 - Reporting to Work on Scheduled Absent Day

In the event an employee is directed to report to work on his/her scheduled absent day, payment shall be calculated at straight-time wages for the first eight (8) hours of the twelve (12) hour shift, and at time and one half for any hours worked in excess of eight (8) hours.

Letter 22 - Job/income Security Program

As a result of negotiations, the understanding listed below will govern the parties in the event that specific actions taken by the Company may result in permanent job loss. For example, the introduction of new technology, sale of part of the Company, and consolidation of operations would be actions contemplated by this understanding. This understanding would not apply to cyclical fluctuations or the reduction of "temporary" assignments. Where such permanent loss of jobs is considered, one (1) year notice will be provided to the Union in the case of plant closure and six (6) months' notice will be provided to the Union in the case of a potential permanent job loss related to a restructuring as referred above. The information supplied to the Union will include the number of employees who could potentially be 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.

During the course of these discussions, the objectives of the parties will be the retention of the jobs in question. To that end, the parties will discuss opportunities to retain or replace the jobs which are being discontinued. The Union will have thirty (30) days from the date of notice to make proposals which could make it feasible to retain or replace the jobs in question.

If job losses become unavoidable and management decides to reduce the size of the workforce, every effort will be made to use attrition to manage the required reductions.

The notice provisions in item 1 above will not be strictly relied upon where circumstances outside the Company's control render compliance with such notice provisions impossible. In such a case the parties will meet to review such circumstances.

Letter 23 - Employment Standards

During the current negotiations, the union expressed concern about the possibility of future legislative changes negatively impacting existing employment standards in relation to overtime as set forth in the Employment Standards Act (Ontario). The following is agreed to:

50

The rights, benefits, terms or conditions of employment as set out as employment

standards in the Employment Standards Act (Ontario) and regulations in relation to overtime, as the same relates to the Union, the Company and/or its employees, shall be minimum requirements incorporated within this Collective Agreement; however, where this Collective Agreement provides higher remuneration in money or a greater right, benefit, term or condition of employment in favour of an employee(s) with respect to overtime, this Collective Agreement shall prevail.

The Union and/or bargaining unit employees shall not be disadvantaged in any way by any amendments to the Employment Standards Act or regulations thereunder in relation to overtime made by the provincial government.

Letter 24 - Health and Safety

During the current negotiations, the Union raised with the Company its concern regarding possible future changes to the Occupational Health and Safety Act (Ontario) and regulations. The parties understand that should changes to the legislation affect an employee's right to refuse unsafe work, the Joint Health and Safety Committee shall meet within ten (10) days’ notice of a written request to meet. The parties will make a good faith effort to arrive at a fair and workable solution to the problem in a forthright and expeditious manner. It is further agreed that any changes to the regulations would also be reviewed by the above-mentioned parties in order to assess the impact on employee health and safety. The parties agree that the regulations in effect on the date of this agreement would be considered a minimum standard.

Letter 25 - Prescription Glasses

The Company will provide prescription safety glasses to seniority employees working on a job or in an area where eye protection is a Company requirement provided the employee furnishes a prescription from the employee's own doctor or optometrist. It is understood invisible line bifocal and trifocal lenses are included in this program. The Company will replace such glasses if damaged by a cause attributable to employment or if the employee presents a new and different prescription from the employee's doctor or optometrist. The Company will consider the recommendations of the Health and Safety Committee when it establishes the standards and specifications for the frames and lenses and will select the manufacturing source.

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In addition, computer operators (seniority employees) who wear bi-focals or tri-focals may be eligible for “ComfortEyes” (task specific eyewear) in lieu of bi-focal or tri-focal lenses. To be eligible, a prior ergonomic assessment must be completed on the employee’s job station indicating a need for “ComfortEyes”, an ergonomic program vision questionnaire must be completed, a medical specialist’s report must be obtained recommending “ComfortEyes”, and the employee must be regularly assigned and working at a computer for at least six (6) hours daily at a work station.

Letter 26 - Students

It is understood and agreed that the wages set out for students in Appendix "A" to the Collective Agreement represent the full extent of the Company's obligations to students under the Agreement and there is no entitlement to health care benefits, pension, etc.

Letter 27 - CUOE Retirees

During the term of the Collective Agreement, the Company intends to treat CUOE retirees, insofar as is practicable, in the same manner as UNIFOR retirees are dealt with by Chrysler Canada Ltd. For greater certainty, CUOE retirees will be entitled to the full range of health care benefits to which they have been accustomed. The Company is to provide the Union with a list of CUOE & TA retiree’s and surviving spouse, pending availability. Contact information will also be provided in accordance with PIPEDA. -

Letter 28 – Employees Hired for Short Durations

Employees hired for short durations will include employees hired for the seasonal guarded and unguarded plant, temporary replacements for leaves of absence, sickness or injury to an employee, and vacation relief. The company’s intention around the use of these employees is not to limit the hiring of regular employees.

Union dues will be paid by all employees hired for short durations from the date of entry. This also applies to employees that are hired through hiring agencies.

No employees will be hired for short durations if seniority rated employees are on layoff. In the above letter of understanding, all layoffs and recalls will be governed by Section (25) and (26), in the collective agreement. Employees hired for short durations will have time for time recall (e.g. an employee who works for four (4) months will have four (4) months recall rights).

Letter 29 – Staffing

The Company’s intention is to maintain appropriate staffing levels consistent with business objectives and goals. A minimum complement of fourteen (14) positions

52

(operators and maintenance) will be maintained for the duration of this collective agreement. In the event that there are layoffs to reduce staffing levels up to the minimum complement the parties have agreed to the following:

1. The parties will attempt to achieve the staffing complement by attrition wherever possible.

2. The company will post vacancies from other Company facilities in Ontario at the Windsor plant during the term of the Collective Agreement. A qualified applicant whose position is identified as redundant as a result of this staff reduction will be offered first consideration for such vacancies. Applicants will receive no further entitlement except for relocation assistance under clause 5

3. The Company will provide outplacement counseling opportunities to employees

4. Employees with less than five (5) years’ seniority will be granted an earlier VTEP threshold on a one-time basis only. It is agreed by the parties that “service” equals “seniority” for the purposes of VTEP.

5. The Company will provide relocation assistance to employees as per the Company in-scope policy

6. The employee may elect to sever their employment relationship with the Windsor plant under UNIFOR agreement and accept a job at another Company facility in Ontario. Employees who select this option will be covered by the TransAlta Corporate relocation plan. In such circumstances, the employee will lose their recall rights under section 22 of the Agreement.

Any further reductions will be governed by the Collective Agreement, including Letter 12 and 22.

Letter 30 – Temporary Off Site Assignments

Bargaining unit employees may be offered temporary opportunities in roles or locations that are outside the scope of this agreement.

Opportunities will be posted for three (3) days and the posting will provide the following information:

• Expected Duration • Location • Brief Description of Job Assignment • Minimum Experience and Qualifications Required

53

The posting will be filled by the qualified applicant with the greatest seniority who can satisfactorily perform the work to be done given their experience and qualifications.

Upon the completion of the job assignment the employee will return to his/her previous job with no loss of seniority.

Overtime equalization will be calculated using the actual overtime hours accumulated during his/her off site assignment.

Letter 31 –Trade Certificates Licenses

Work related certificates and licenses will be covered by the company upon satisfactory proof.

Letter 32 - Management of Vacation & PAA In order to best utilise employees for vacation, PAA, and SPAA coverage, it is agreed that:

• By mutual agreement of the employee and management and where practical, employees may be used between job classifications for vacation relief, SPAA and PAA coverage.

• Vacation and PAA requests approved by the company by January 31 will

take priority over any requests made throughout the calendar year.

• In the event that issues and concerns arise related to accommodating individual vacation or PAA requests, the National Representative of UNIFOR and Director of Labour Relations or designate of the company agree to meet and discuss and resolve the issues

Letter 33 - Transitional PAA alottement and scheduling

(a) As described in Section 33(a) of the collective agreement, eligible employees

are entitled to receive Basic Vacation Payment as described in the table. This vacation/PAA/SPAA will now be granted on January 1st of every year.

(b) Employees will receive PAA/SPAA 6 months ahead of the prior date of June

30th outlined in the collective agreement. An employee leaving the company will have his adjustment calculated as per section 33.

Letter 34 – Training Hours

During the 2011 negotiations, the union and the company agree that training hours provided for employees hired as temporary or vacation replacements will not count

54

towards the first one hundred and twenty (120) days of their employment towards the fulfillment of the probationary period.

Letter 35 – Pension & Benefit Eligibility For the purpose of benefit and pension eligibility, where the term ‘spouse’ appears in the collective agreement, related letters or appendices, it shall be deemed to include ‘same sex’ spouse.

The parties have agreed to jointly address these concerns with the hospital corporations serving the communities in which TransAita Generation Partnership and UNIFOR members reside.

DATED at Windsor, Ontario this 19th day of October 2017

TransAita Generation Partnership UNIFOR Local 444

/ /

Harry Charles Terry Flatt

~~'~ Dave Cassidy

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SECTION 3. Effect of Other Relocation Benefits

In the event an employee who is eligible to receive a Relocation Allowance under these provisions is also eligible to receive a Relocation Allowance or its equivalent under any present or future Federal or Provincial legislation the amount of Relocation Allowance provided under the Exhibit C when added to the amount of Relocation Allowance provided by such legislation shall not exceed the maximum amount of Relocation Allowance the employee eligible to receive under the provisions of this Exhibit C.

SECTION 4.

When operations are concurrently transferred between two or more plants, the number of employees to be transferred from on plant will be offset against the number to be transferred to that plant and only the number of employees equal to the net difference will be transferred and entitled to Relocation Allowance.

SECTION 5.

A single Relocation Allowance payment will be paid when more than one member of a family living in the same residence are relocated pursuant to the sections of the Collective Agreement relating to Transfer of Operations between Plants.

DATED at W indsor, Ontario th is 19 th day of October 2017


Terry Flatt

Luc

~ea~- Dave Cassidy

2



Terry Flatt

CJ:) ")~-~ David Cassidy

Page 40


TransAita Generation Partnership UNIFOR Local444

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39

DATED at Windsor, Ontario, this 19 day of October, 2017

TransAlta Generation

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UNIFOR - Local 444

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