10.1 Shop Stewards

The Employer agrees to recognize Shop Stewards appointed by the Union. The Union will advise the Employer in writing of the names of Shop Stewards so appointed.

10.2 Visitation

A) Duly authorized Representatives of the Union shall have the right to visit the plant with the approval of the Employer, such approval not to be unreasonably withheld, for the purpose of dealing with matters arising from the interpretation, application or operation of this Agreement and shall observe all reasonable rules and procedures applicable to visitors and will not engage in any activity that is disruptive or interferes with the operations or workforce.

B) The Employer shall consult the Union prior to making any changes to its visitation rules.

C) In the event that Representatives of the Union wish to visit an area where Employees are working, the Employer shall have the option of accompanying the Representatives to the area for the safety of any individual.

10.3 Orientation

During orientation:

The Employer will provide to new Employees a Union pamphlet approved by the Employer; and

The Employer will provide a list of Officers, Shop Stewards, and Safety Representatives in the respective departments; and

The Employer will grant the Union fifteen (15) minutes to meet with new Employees; and

The Union commits to acting professionally during such meetings. If issues arise, this privilege will be suspended until the President of the Union meets with the Human Resources Manager to resolve any issue.

10.4 Employee Information

The Employer shall provide the Union with an updated employee list each quarter. The Employer shall update the Union weekly with respect to new hires and dismissals.

10.5 Union Representation

When an employee is to receive written notice of discipline in the form of a written warning, suspension, or dismissal, or Union Representation is otherwise allowed by law, the Employer shall have a Shop Steward present at the meeting.

10.6 Union Bulletin Boards

Bulletin Boards for use by the Union shall be maintained in conspicuous locations in the plant at all times. Notices may be posted on such bulletin boards for such matters as Union meetings, social affairs, recreational affairs, and Union elections and appointments. Other matters may be posted provided they are not defamatory or discriminatory.

10.7 Discipline and Discharge

A. Normally, all discipline and discharge will be meted out within ten (10) days of the Employer becoming aware of an incident.

B. All records of any discipline shall be removed from all employees’ files and destroyed and not used for any purpose after eighteen (18) months. The Employer shall continue with its current practice of progressive discipline involving "YELLOW", "PINK", and "RED" warnings issued after other verbal and written warnings. "YELLOW" warnings and preceding disciplines, "PINK" warnings, and "RED" warnings shall not be relied upon after 3, 6, and 12 months respectively from the date they were issued.

C. Employees shall be entitled to review their personnel files on an annual basis or upon being disciplined by the Employer.

10.8 Union Office and Roamers

The Employer shall provide a furnished Union office in a mutually agreed location inside the plant.

The Employer shall recognize two full-time in-plant Union Representative "Roamers". These individuals, appointed by the Union, shall be remunerated and provided with full benefits by the Employer as though they were Employees.

8.1 The Employer agrees to recognize Shop Stewards appointed by the Union. The Union will advise the Employer in writing of the names of Shop Stewards so appointed.

8.2 Duly authorized Representatives of the Union shall be entitled to visit the plant with the approval of the Employer, such approval not to be unreasonably withheld, for the purpose of dealing with matters arising from the Interpretation, application or operation of this Agreement and shall observe all reasonable rules and procedures applicable to visitors and will not engage in any activity that is disruptive or interferes with the operations or workforce.

8.3 The Employer shall consult the Union prior to making any changes to its visitation rules.

8.4 In the event that Representatives of the Union wish to visit an area where Employees are working, the Employer shall have the option of accompanying the Representatives to the area for the safety of any individual.

8.5 During orientation:

a. the Employer will provide to new employees a Union pamphlet approved by the Employer; and

b. the Employer will provide a list of officers, Shop Stewards and safety representatives in the respective Departments; and

c. the Employer will grant the Union 15 minutes to meet with new employees; and

the Union commits to acting professionally during such meetings. If issues arise, this privilege will be suspended until the President of the Union meets with the Human Resources Manager to resolve the issue.

8.6 The Employer shall provide the Union with an updated employee list each quarter. The Employer shall update the Union weekly with respect to new hires and dismissals.

8.7 When an Employee is to receive written notice of discipline in the form of a written warning, suspension, or dismissal, or Union representation is otherwise allowed by law, the Employee may, at the Employee's request, have a Shop Steward present at the meeting.

18.2 Normally all discipline and discharge will be meted out within ten (10) days of the Company becoming aware of an incident.

The Company will not use a disciplinary letter for any purpose following completion of an 18 month period without receiving further disciplinary letters.

Employees shall be entitled to review their personnel files on an annual basis or upon being disciplined by the Company

21.1 Bulletin Boards for use by the Union shall be maintained in conspicuous locations in the plant at all times. Notices may be posted on such bulletin boards for such matters as Union meetings, social affairs, recreational affairs, and Union elections and appointments. Other notices may be posted subject to the approval of the management as to their contents, such approval not to be unreasonably withheld.

ARTICLE 20

GRIEVANCE PROCEDURE

1. A grievance is defined as a difference between the Company and an employee or the Union as to the interpretation, application, operation, or alleged violation of any provision of this Agreement. The Company and the Union agree that grievances should be resolved promptly; however, the right to present and investigate grievances during working hours will be exercised only at reasonable and mutually convenient times and shall not interfere with production. The Company will allow an employee the right to a steward's presence at all discipline. If such steward is readily available, the company will have a union designated steward or a union designated alternative steward present during the discipline. Before an employee is disciplined, the parties will jointly investigate the incident that gives rise to the potential discipline. When an employee is being suspended or terminated, the steward will interview the employee before the employee leaves the premises. The interview will take place in an appropriate area designated by the Company. If a steward needs to interview witnesses in relation to the incident, the Company will allow such an interview as soon as possible, except there is no guarantee that witness interviews will always be held on Company time and the steward must accept responsibility for using their own time if necessary to conduct the investigation. An employee has the right to choose an interpreter of their choice from a list of interpreters mutually agreed upon by the Company and the Union at any discipline or step of the grievance procedure. Employees will not stop working on account of their grievances. When a grievance is satisfactorily resolved at any step, such settlement will be reduced to writing and is final and binding. Time limits are mandatory but may be extended by mutual agreement. Grievances may be filed by the Union, or the Company. Copies of all discipline will be forwarded to the union.

There will be a two (2) year trial period relating to the language in Article 20 (grievance Procedure) [Before an employee is disciplined, the parties will jointly investigate the incident that gives rise to the potential suspension or discipline] and Article 24 (General) [The company will use a four-step progressive disciplinary procedure for misconduct which is less than serious as defined by the Company excluding attendance and safety violations. The four-step procedure includes a disciplinary notice, a written warning, and a final written warning in lieu of a suspension before termination. The grievance procedure still applies.] Either party may give notice to the other prior to or on January 2, 2007 that it wishes to end the trial period. In such event the language of Article 20 will read "Before an employee is suspended or terminated, the parties will jointly investigate the incident that gives rise to the potential suspension or discipline" and Article 24.6 will read "The four-step procedure includes written warning, and two suspensions before termination.

Article 13 – Advise of Reasons for Discipline

Section 3: In the event of interrogations or investigations of wrong doing, the Company will advise the employee of his right to Union Representation by a steward of choice, if available, within the concerned department.

Memorandum of Understanding

Union Office

This memorandum is hereby made a part of the Labor Agreement between IBP, Inc., Dakato Dunes, South Dakota, for its Joslin, Illinois plant, and the United Food and Commercial Workers, AFL-CIO & CLC, effective for the period of March 05, 2001 to March 05, 2006.

The Company will identify and make available furnished office space for the plant representative. The parties agree that the plant representative and the members will adhere to all Company office policies. The Company reserves the right to revoke this privilege with a thirty (30) day written notice to the Union.

Memorandum of Understanding

Full-Time Union Steward

This memorandum is hereby made a part of the Labor Agreement between IBP, Inc., Dakato Dunes, South Dakota, for its Joslin, Illinois plant, and the United Food and Commercial Workers, AFL-CIO & CLC, effective for the period of March 05, 2001 to March 05, 2006.

The Company has agreed to allow an employee to be a full-time union steward and pay the employee up to thirty-six (36) hours per week, at their master rate. The employee will also be allowed to participate in IBP’s health and welfare programs. The Company reserves the right to revoke this privilege with a thirty (30) day written notice to the Union.

The two main areas of disagreement between the Employer and the Union are (1) mandatory shop steward presence during discipline, and (2) union roamers.

UFCW, Local 401 proposes mandatory attendance of the union shop steward at all disciplinary and other meetings that attract the Weingarten principles (accommodation meetings, etc.). The Labour Relations Board has found that the Employer violated the Code in relation to employees’ rights to union representation in the pre-collective agreement period. In these circumstances, it is essential that union representation be mandatory to ensure that employees know that they have the right and opportunity to obtain union representation in their meetings with the Employer. The many unfair labour practices filed on this issue demonstrate further the need for effective mandatory language. [Binder 4, LRB Decisions: Tabs 1 to 4]

Cargill’s language permits extensive union representation in the period prior to the imposition of discipline. The provisions allow for joint investigation and for the provision of interpreters for employees. UFCW 401 is not seeking such broad language in its proposals. Lakeside would simply be required to ensure that a shop steward is present at all meetings where the Employer intends to discipline or deal with other work issues that attract Weingarten rights (i.e accommodation, demotions, etc.).

The second area of disagreement is the "roamer" provision. The Union proposes that there be two in-house roamers located in a Union office in the plant. The rationale for the request is the unique circumstances of this workplace where the Employer has a 15 year history of campaigning against the Union and demonstrating through actions and words its anti-union attitude. The workforce remains a vulnerable workforce, comprised of many employees with limited knowledge of English or their legal rights. The problems in the workplace are immense as can be seen by a review of the numerous unfair labour practice complaints. The roamer positions would provide the Union with an effective mechanism for ensuring the proper administration of the collective agreement and would permit early and consistent problem solving. [Unfair Practice and other Complaints, Binders 5, 6 & 7]

A sample roamer provision is contained in the IBP agreement (now Tyson) at Joslin, Illinois, one of the plants falling under the responsibility of Rex Hofer.

With respect to employee discipline, the Union’s proposal codifies the Employer’s current practices. The discipline policy is set out in the Employee handbook and is further explained in the Employee Discipline Notice. The Notice sets out the life of the three levels of warning as 3 months for Yellow, 6 months for Pink and 12 months for Red. [Notice of Discipline, TAB 29]

11.1 Gold hats shall be representatives of the Employees health and safety interests. Gold hats shall be designated by the Union and there shall be no fewer than one (1) per department per shift.

New gold hat orientation training shall be five (5) days paid by the Employer but conducted jointly by the Union and the Employer. Gold hats shall receive subsequent training provided by and at the discretion of the Union with time off provided by the Employer.

Gold hats shall be allowed three (3) hours paid time per day to perform their duties as representatives of the Employees health and safety interests. The existence and role of gold hats shall not be a substitute for or in any way lessen the Employer’s obligations under occupational health and safety legislation.

11.2 Employees can refuse work they believe to be unsafe without loss of pay or benefits.

11.3 The Employer shall recognize a health and safety committee that includes all Gold Hats and two (2) Union Representatives.

The Employer shall be entitled to send representatives from management to meetings but such representatives shall have the ability and authority to make decisions on behalf of the employer and implement health and safety committee recommendations.

The health and safety committee shall meet no less than twice per month; each meeting lasting no less than one day. Such meetings shall be on Employer time.

The committee’s mandate shall be to assist management in complying with their obligation to ensure the health and safety of employees and related principles. Differences may be grieved and arbitrated.

11.4 The Employer shall recognize an ergonomics committee. Silver hats shall be designated by the Union and shall be representatives of Employee interests. It shall be made up of six (6) Silver Hats and one (1) Union Representative and up to seven (7) management officials.

The Committee shall meet no less than one (1) day every three (3) months on Employer time. The Employer shall apply ergonomic principles to the work done in the plant, ensuring the highest level of safety for its Employees. The committee’s mandate shall be to monitor compliance with this mandate. Differences may be grieved and arbitrated.

New silver hat orientation training shall be five (5) days paid by the Employer but conducted jointly by the Union and the Employer. Silver hats shall receive subsequent training provided by and at the discretion of the Union with time off provided by the Employer.

11.5 The Employer shall provide anti-fatigue mats to all Employees who request them. Such mats shall be provided based on their effectiveness and Employee preference.

11.6 Job rotation shall be considered and allowed where desired by Employees and where practical subject to Employer/Union consultation and reasonable approval by both parties.

11.7 When an Employee believes that product is contaminated or unsafe for consumption, they may refuse to participate in production without loss of pay or benefits and without penalty of any kind.

11.8 Line speeds and production requirements shall be fair and reasonable.

11.9 The Employer shall take every step to minimize and, if possible, eliminate sullied conditions of work.

11.10 The Employer shall ensure that employees receive adequate training and equipment to eliminate health and safety risks.

11.11 The Employer shall provide proper and sufficient first aid kits.

11.12 Proper fire drills shall be held every three (3) months and proper fire equipment and alarms shall be provided on site.

11.13 An Arbitrator appointed under this agreement shall, at the Union’s discretion, have jurisdiction to apply and enforce the Workers' Compensation Act and have further jurisdiction to award monies or benefits or any other remedy to any worker as may, in the Arbitrator’s discretion, ensure fairness. The Arbitrator shall also have the power to award any punitive damages against the employer he/she should choose. Such damages shall be commensurate with any injustice done, the employer’s ability to pay, and crafted to deter future employer conduct.

11.14 Safe drinking water shall be provided to all Employees while working and during breaks.

11.15 The Employer shall ensure the health and safety of its Employees and shall comply with all legislation protecting or providing rights to workers.

11.16 The Employer shall fly its flags at half-mast on Injured Workers’ Day and shut the production line down to observe a plant wide minute of silence at a time when the line is running and the largest number of Employees is in the plant. One Employee selected by the Union shall be allowed Union leave for that day (with pay and benefits provided by the Employer) to attend an Injured Workers Day function.

9.1 The Employer and the Union agree that safety in the workplace and the protection of all employees are of primary importance. Safety is a shared responsibility and the input of all employees to improve safety practices and conditions is encouraged and expected. Plant safety programs and efforts will be coordinated through the involvement of people from all levels of the organization.

9.2 The Employer and the Union will establish a safety committee to ensure and promote safety at and away from work. The Terms of Reference of the Committee will include:

An equal number of employee members appointed by the Union and the Employer representing different Departments in the plant.

The Employer may appoint additional non-bargaining unit personnel to the committee.

The Company’s Complex Safety Co-coordinator will act as the committee’s facilitator.

The Safety Committee shall meet at least once a month, on Employer time, not to exceed two (2) hours and discuss their findings with the Plant Manager or his designee.

In the event that special circumstances require a meeting in excess of two (2) hours, the Committee may request additional time to meet.

Additional time off with pay may be allowed to tour the plant and conduct a safety inspection.

The Complex Safety Co-coordinator and the Union will provide necessary training.

9.3 The Employer and the Union will establish an ergonomics team to work

An equal number of employee members appointed by the Union and the Employer representing different Departments in the Plant.

The Employer may appoint additional non-bargaining unit personnel to the committee.

The Employer recognizes that employee involvement is crucial to the success of the ergonomics program.

The Ergonomics Team will meet at least once every month, on Employer time, not to exceed two (2) hours to conduct business.

The Complex Safety Co-coordinator and the Union will provide necessary training.

9.4 The Employer and the Union agree to cooperate in making the safety programs work. If the Union is concerned about the Employer’s commitment to provide a safe workplace, the Union’s Business Agent will resolve those concerns with the Plant Manager or his designee.

ARTICLE 18

SAFETY

1. The Company and the Union agree that safety in the workplace and the protection of all employees are of primary importance. Safety is a shared responsibility and the input of all employees to improve safety practices and conditions is encouraged and expected. Plant safety programs and efforts will be coordinated through the involvement of people from all levels of the organization.

2. The Company will give all employees a safety handbook which details Company policy, rules, guidelines, and safety information. The handbook will be reviewed and updated as needed.

3. The Company and the Union will establish a safety committee to insure and promote safety at and away from work. Details of the safety committee are provided in Exhibit C.

4. The Company and the Union will establish an ergonomics team to work with the Company's safety committee in identifying potential ergonomic problem areas and potential solutions. Details of the ergonomic team are provided in Exhibit D.

The Company and the Union agree to cooperate in making the safety programs work. If the Union is concerned about the Company's commitment to provide a safe workplace, the Union's Business Agent will resolve those concerns with the Plant Manager.

6. The union will be entitled to review copies of the company's budgeted crewing standards. Such requests will be made to the plant general manager or his designee in accordance with potential disputes that may arise.

1. A safety committee of eight (8) employee members will be appointed by the Union. In addition, the Company may appoint additional non-bargaining unit personnel to the committee. The Company's Safety Manager will act as the committee's facilitator. Employee members shall be appointed from the following areas:

A. Slaughter (2 members, 1 member from days, 1 member from nights);

B. Fabrication (4 members, 2 members from days, 2 members from nights); and,

C. Maintenance (2 members)

2. The Safety Committee shall meet monthly, on company time, not to exceed two (2) hours and discuss their findings with the General Manager or his designee. The committee will determine at the time of their meetings the inspections to be made. In the event that special circumstances require a meeting in excess of two (2) hours, the Committee shall request additional time from the General Manager or his designee. In addition to the monthly meeting of the Safety Committee, one member of the Safety Committee designated by the Union will be allowed time off with pay at least one day per month to tour the plant on a safety inspection. A Safety Committee member designated by the Union from fabrication, slaughter and maintenance will be allowed time off with pay to assist in the safety inspection tour in their respective division.

3. The responsibilities of the committee shall include, but not limited to, plant inspections and/or the investigation of accidents and causes of work related illnesses, for the purpose of insuring and promoting a safe work environment. The Committee's recommendations shall be investigated by Management and the Committee will be advised of the Company action on them within one (1) week. A union steward who is designated by the Union as a member of the Safety Committee will be part of any investigation of an on the job accident that is a lost time injury.

4. The meetings of the Committee will be scheduled by the General Manger or his designee.

1. The Company and the Union recognize that cumulative trauma disorders (CTD'S) are a complex issue. The purpose of the ergonomics team is to work with the Company's safety committee in identifying potential ergonomic problem areas and recommending potential solutions. The Company recognizes that worker involvement is crucial to the success of any ergonomics program.

2. The Company and the Union will form a plantwide ergonomics team comprised of the Safety Manager or his designate and two (2) hourly employees designated by the safety committee. Additionally, the committee shall include a full-time ergonomic monitor jointly selected by the Company and the Union.

3. The team will act as a subcommittee of the Safety Committee.

4. The team will hold monthly meetings or as other wise determined by the ergonomics committee to review the Company's ergonomics program.

5. The team is responsible for submitting recommendations to the Safety Committee the general manager or his designate.

6. The Safety Manager will provide the team necessary training.

SAFETY

25.01 The Company and the Union recognize the benefits to be derived from safe working conditions and work practices. Accordingly, it is agreed that Employees, Union representatives and Company Supervisors at all levels, shall cooperate to promote safe work practices, safe and healthy working conditions and the enforcement of safety rules. Further, Employees of the Company are fully obligated to comply with all reasonable rules of conduct and safety established by the Company.

25.02 a] It shall be the duty of an Employee to report immediately to his immediate Supervisor any unsafe working condition(s).

When such situations arise, the Supervisor, with the Employee and the Union Safety Representative, if he is on shift, will investigate the matter. The Supervisor is responsible for maintaining a safe working environment within his area and shall arrive at a speedy resolution to the identified situation. In determining the extent of the identified unsafe condition and the necessary corrective action, the Supervisor may seek the opinion of others or call upon any or all available resources.

b] The Company does not want an Employee to work in any situation which is unsafe or hazardous. Where an Employee is able to demonstrate, on reasonable grounds, that a condition of hazard exists at a work location, the Employee shall not be subject to discipline by reason of refusing to work at that place. In the event this situation arises, the Employee will first immediately notify his immediate Supervisor. The Employee concerned may request the assistance of a Union Safety Representative.

25.03 a] The Company and the Union shall work together in establishing a Joint Safety Committee consisting of four (4) Employee representatives, one (1) each representing the Kill Floor, the Cooler, the Yard and the Maintenance areas and four (4) representatives appointed by the Company.

b] The Company and the Union recognize that the Joint Safety Committee can be a significant contributor to the promotion of safety and should be in place and maintained. It shall be the duty of the Joint Safety Committee to promote the desire on the part of all Employees to work safely, to keep the premises and equipment in such condition that they will be safe for all Employees, and to promote and advocate the observance of all safety rules and regulations.

c] The Company and the Union shall each appoint one (1) of their appointees to the Joint Safety Committee to act as a Co-Chairperson of the Joint Safety Committee. The Co-Chairpersonship of the Joint Safety Committee will alternate every two (2) months or as otherwise mutually agreed.

d] The Union will notify the Company, in writing, of the names of their appointees of the Joint Safety Committee and the areas that they represent.

e] The Union and/or the Company may also nominate other Employees as temporary replacements for the permanent Joint Safety Committee members who may be absent from time to time.

f] The Company shall post the names of the permanent members of the Joint Safety Committee to the bulletin board(s).

25.04 a] Once every month the Joint Safety Committee, on a date and time mutually agreed upon, shall inspect a specific work area of the operation. Immediately after each inspection the Committee shall meet to prepare a report of its findings and to set a date and location for/of the next inspection and shall, as soon as possible thereafter, submit its findings to the Plant Superintendent, the Joint Safety Committee, the Union and the Director of Inspections administering the Occupational Health and Safety Act for the Province of Alberta.

b] The general duties of the Committee shall be to make a thorough inspection of the pre-selected section of the premises for the purpose of determining hazardous conditions, to investigate unsafe practices and to receive complaints and recommendations with respect to these matters.

c] The safety tour shall be comprised of the Co-Chairperson, and the Employee and Company Safety Representatives.

25.05 If required, once every six (6) months, the Joint Safety Committee will tour the entire operation.

25.06 Whenever a serious accident occurs, whether or not involving injury, the Employee Safety Committee Chairperson, or his designate, shall be immediately notified by the Company and permitted access to the place of the accident to participate in the investigation along with the Company's Safety Committee Chairperson or his designate. Copies of the resultant investigation report will be circulated to all members of the Joint Safety Committee. This provision shall be subject to the Occupational Health and Safety Statute and Regulations of the Province of Alberta.

25.07 a] Time spent during an Employee's regular working hours on monthly safety inspections and subsequent on site meetings will be considered time worked and will be used for the purpose of calculating overtime entitlement.

b] Time spent at the Company's Plant operations, outside an Employee's scheduled regular working hours, as required by the Joint Safety Committee on monthly inspections and subsequent meetings, will be paid at the Employee(s) regular straight time rate and such time will be used for the purpose of calculating overtime entitlement.

25.08 Employees are encouraged to put forth to the Joint Safety Committee, suggestions for improvements or alternatives, in order to improve the Safety effectiveness of the Company's operations.

25.09 The Company and the Union may, upon mutual agreement, change the terms of reference and the composition of the Joint Safety Committee to improve its effectiveness.

25.10 The Company will institute general safety meetings on a regular basis on Company time. Suggestions and/or complaints tendered by Employees at these general meetings shall be discussed and recorded and then forwarded to the Joint Safety Committee for their review and action at their next regularly scheduled committee meeting.

25.11 a] The Company shall supply safety equipment, as listed (but neither equal nor limited to) in Section 25.12 of this Article, on a loan basis to Employees that are deemed by the Company to require such equipment in the performance of any work the Employee may be assigned.

b] The equipment referred to in Section 25.11 Sub-Section a] above shall not be removed from the Company's plant site.

c] The Employee loaned such equipment referred to in Section 25.11 Sub-Section a] above shall be required to sign for the article(s) loaned and return said article(s) in good and serviceable condition, fair wear and tear excepted, to the Company when either his assignment no longer requires the use of such article(s) or when the Employee(s) is laid off or terminates his employment with the Company.

d] An Employee(s) who fails to return a loaned article(s) in accordance with Section 25.11 Sub-Section c] above shall be charged with the replacement cost of the article(s) in question.

e] Employees shall maintain and not deface in any way, equipment supplied by the Company.

f] The nature of the work and the conditions under which the work is performed, as determined by the Company, will govern the issuance of any safety equipment.

25.12 Safety Equipment

Hard Hats Hard Hat Liners

Chin Straps Hearing Protectors

Mesh Gloves Apron & Belly Pads

Knife Scabbards Wrist Guards

Safety Glasses Steel Toed Rubber Boots

Safety Locks Switch Gear Locks

Electrician's high voltage gloves

Aprons, Gloves and Face Shields for handling corrosive substances.

ARTICLE XXVIII

SAFETY COMMITTEE

Section 1: The Company and the Union recognize the priority and need for an effective, structured safety program to provide safe working conditions for all employees.

The Joint Safety Program is designed to address all health and safety working conditions within the plant, and both parties will constructively work together to improve the safety of the facility conditions or practices.

While the Company fully retains the right to select and utilize such outside consultants as it deems in its sole discretion, to be needed, the Company and the Union may discuss and, if mutually agreed, select consultants to assist the parties in safety and health matters.

Section 2: The Company agrees that it has the sole responsibility to provide a safe workplace and to correct safety hazards. Nothing in this Agreement shall imply that either the Local or International Union has undertaken or assumed any portion of the responsibility. In exercising its rights to manage the safety and health program in the plant, the Company will continue to inform both management and non-management employees that safety depends upon the performance of every person in their job duties.

Section 3: The Company will continue the current Safety Committees in each plant for the purpose of advising and assisting the Company in identification of safety hazards and to recommend solutions.

A. The membership of the Safety Committee shall consist of Employee Representatives designated by the Local Union [membership shall consist of a minimum of eight (8) in the Slaughter Division; four (4) in Extension; seven (7) in the processing Division, and two (2) in Hides/Tannery Division]and subject to replacement under such circumstances and conditions as the Local Union may determine, and representatives designated by Plant Management (one of whom shall be the person in charge of Maintenance at the plant), and subject to replacement under such circumstances and conditions as the Plant Management may determine.

B. The Safety Committee shall convene once each month and at such other times as the Safety Coordinator of the Plant shall determine in order to carry out its functions. The duties of the Committee shall include the review and investigations of safety practices and rules and health and safety conditions in the plant and the handling of safety complaints. The company shall cooperate in including a representative designate by the Union in all OSHA inspections, to the extent required by law or mutually agreed as beneficial to the safety effort.

Committee members will be permitted to make their own inspections of the plant conditions as are reasonably needed (provided that this shall not be abused), subject to such controls as the Safety Coordinator may impose. Working hours lost by Employee committee members in the performance of their duties as members of the Committee shall be compensated by the Company at their regular hourly rates.

C. The Safety Committee shall review safety concerns and make recommendations to management as promptly as is feasible.

D. The Company shall take minutes of the Joint Safety Committee meetings and promptly furnish copies of such minutes to the Local Union and to the employee members of the Safety committee.

E. The Company will pay lost working time for bargaining unit Safety Committee members as may be necessary to attend safety training programs or seminars scheduled by management.

F. The Company’s Safety Coordinator shall notify a designated Union Safety Committee member of the occurrence of any accident resulting in an injury causing an employee to be hospitalized overnight. The designated Union Safety Committee member and the Company’s Safety Director Coordinator shall review the circumstances causing the accident.

G. The Union will consult with management on the appointment of a new safety committee member.

Section 4: In the event an employee detects what he or she believes to be a hazard to health and safety in his or her working area, the employee shall have the right to contact his or her immediate supervisor, who, if in agreement with the employee, shall take immediate action to eliminate the hazard. If the employee believes that the hazard has not been eliminated, such employee shall have the right to contact an employee member of the plant Safety Committee, who shall then bring the matter to the attention of the Safety Coordinator or Plant Manager.

Section 5: The Company shall provide such training programs as management, in its sole discretion, decides are necessary to assure that each employee, in connection with his or her respective job, is adequately trained in the precautions and procedures required for safety and maintenance, handling and use of facilities, equipment, machinery, chemicals and apparatus. The recommendations of the Safety Committee shall be given consideration by management in this regard.

Section 6: The Company shall provide to the Local Union a list of all known hazardous substances and processes in use in the plant, giving the chemical name and trade name of each, and stating the known dangers and harmful effects of each and the known threshold levels of measurements or other factors which may give rise to such dangers or effects.

Section 7: The Company will endeavor to keep the dispensary open during all production hours. The parties agree plant procedures should cover emergency first aid for accidents that might occur when no medical personnel are available on the premises.

Section 8: The Company and the Union recognize the complexity and importance of ergonomic issues in the meat industry. The Company has indicated its support for progress in this area and that significant attention will be given to this concern by management.

Section 9: The Company agrees to provide written notice to the union of any change of substance to this Program before the change is initiated in the event the Union wishes to discuss the proposed change.

ARTICLE 16

SAFETY COMMITTEE

Section 1: The Company and the Union recognize the priority and need for an effective, structured safety program to provide safe working conditions for all employees.

The Joint Safety Program is designed to address all health and safety working conditions within the plant, and both parties will constructively work together to improve the safety of the facilities conditions or practices.

While the Company fully retains the right to select and utilize such outside consultants as it deems in its sole discretion to be needed, the Company and the Union may discuss and if mutually agreed select consultants to assist the parties in safety and health matters.

Section 2: The Company agrees that it has the sole responsibility to provide a safe workplace and to correct safety hazards. Nothing in this agreement shall imply that either the Local or International Union has undertaken or assumed any portion of that responsibility. In exercising its rights to manage the safety and health program in the plant, the Company will continue to inform both management and non-management employees that safety depends upon the performance of every person in their job duties.

Section 3: The Company will continue the Safety Committee in the plant for the purpose of advising and assisting the Company in the identification of safety hazards and to recommend solutions.

The membership of the Safety Committee shall consist of Employee Representatives designated by the Local Union (one [1] in the Kill Department, one [1] in the Rendering Department, one [1] in the Cut Department, one [1] in the Converting Department, one [1] in the Material Handling Department, one [1] in the Maintenance Division) and subject to replacement under such circumstances and conditions as the Local Union may determine, and bargaining unit employees selected by management from a list provided by the Union and management representatives designated by Plant Management (one of whom shall be the person in charge of Maintenance at the plant), and subject to replacement under such circumstances and conditions at the Plant Management may determine. Upon request, the Company and Union will review the committee member’s effectiveness.

The Safety Committee shall convene once each month and at such other times as the Safety Coordinator of the Plant shall determine in order to carry out its functions. The duties of the Committee shall include the review and investigations of safety practices and rules and health and safety conditions in the plant and the handling of safety complaints. The Company shall cooperate in including a representative designated by the Union in all OSHA inspections, to the extent required by law or mutually agreed as beneficial to the safety effort.

Committee members will be permitted to make their own inspections of the plant conditions as are reasonably needed (provided that this shall not be abused), subject to such controls as the Safety Coordinator may impose. Working hours lost by employee committee members in the performance of their duties as members of the Committee shall be compensated by the Company at their regular hourly rates.

The Safety Committee shall review safety concerns and make recommendations to management as promptly as is feasible.

The Company shall take minutes of the Joint Safety Committee meetings and promptly furnish copies of such minutes to the Local Union and to the employee members of the Safety Committee.

The Company will pay lost working time for bargaining unit Safety Committee members as may be necessary to attend safety training programs or seminars scheduled by management.

The Company’s Safety Coordinator shall notify a designated Union Safety Committee member of the occurrence of any accident resulting in an injury causing an employee to be hospitalized overnight. The designated Union Safety Committee member and the Company’s Safety Director shall review the circumstances causing the accident.

Section 4: In the event an employee detects what he believes to be a hazard to health or safety in his working area, he shall have the right to contact his immediate supervisor, who, if in agreement with the employee, shall take

Section 5: The Company shall provide such training programs as management, in its sole discretion, decides are necessary to assure that each employee, in connection with his respective job, is adequately trained in the precautions and procedures required for safety and maintenance, handling and use of facilities, equipment, machinery, chemicals, and apparatus. The recommendations of the Safety Committee shall be given consideration by management in this regard.

Section 6: The Company shall provide the Local Union a list of all known hazardous substances and processes in use in the plant, giving the chemical name and trade name of each, and stating the known dangers and harmful effects of each and the known threshold levels of measurements or other factors which may give rise to such dangers of effects.

Section 7: The Company will endeavor to keep the Health Services Department open during all production hours. The parties agree plant procedures should cover emergency first aid for accidents that might occur when no medical personnel are available on the premises.

Section 8: The Company agrees to train the Ergonomic Monitors.

Section 9: The Safety Committee members will select one (1) committee member each year to attend the Annual Governor’s Safety Council. The Company will pay the cost of registration for that member and pay the employee the number of hours he would have otherwise been scheduled to work up to a maximum of eight (8) hours straight-time pay to a maximum of four (4) working days. The Union will pay the cost of transportation, meals, and lodging.

Section 10: The Company will make available first aid and CPR training to all Safety Committee members on an annual basis.

The main areas in dispute between the Employer and the Union are the composition of the Joint Health and Safety Committee and the right to refuse dangerous work.

The Occupational Health and Safety Act encourages the use of joint health and safety committees. The Employer has already committed to a Joint Health and Safety Committee in its Employee Handbook and in practice with its use of Gold Hats as members of the Health and Safety Committee.

[Employee Handbook, pp. 13-14, Binder 4, Tab 1]

[Section 31, Occupational Health and Safety Act, TAB 30]

[Part 13, Joint Work Site Health and Safety Committee, TAB 31]

The Union’s proposals attempt to build on the existing Gold Hat structure by making current Gold Hats the Union’s representatives on the Health and Safety Committee. In addition, the Union wants to add two additional representatives. The point of a "Joint" committee is to ensure the equal representation of labour and management in Occupational Health and Safety decision making. The Employer’s proposal permits the Employer to appoint unlimited numbers of non-bargaining unit members to the Committee.

Three of the comparable agreements permit an employee to refuse to undertake work that he or she believes is dangerous until the matter is checked by a supervisor and the Employee Health and Safety representative. The wording of the XL Beef Collective agreement identifies that the Employer does not want employees to perform work that the employee believes is dangerous.

The "right to refuse" is enshrined as well in s. 35(1) and 36 of the Occupational Health and Safety Act. However, by incorporating the right into the collective agreement, employees are able to enforce the right through the grievance and arbitration process. [Sections 35(1) and 36, Occupational Health and Safety Act, TAB 32]

Anti-fatigue mats, job rotations, unsafe food production, line speeds, sullied conditions of work, training, first aid kits, fire drills, and safe water are health and safety concerns that require addressing in this workplace. Inclusion of these basic requirements in the agreement allows employees to enforce their basic Occupational Health and Safety rights.

Workplace Health & Safety’s Report on Ergonomics, August, 2000, reports that Meat processing industry has the highest total costs and the highest number of claims for repetitive motion injuries. (Part 1, p. 5-6) Part 3 of the Report describes Musculoskeletal Injuries and sets out solutions to repetitive strain injuries at p. 4, including job rotation, job diversity, job enrichment, and frequent breaks. [Workplace Health & Safety, Ergonomics, August, 2000, TAB 33]

The Union has proposed wording dealing with an alternate method of ensuing payment for workplace injuries.

12.1 All Employees shall be on probation for sixty (60) days worked from the date of last hire. During the probationary period the Employer may terminate an Employee for any reason at its discretion which shall not be subject to a grievance under the grievance procedure, however, the Employer shall not act in a manner that is arbitrary, discriminatory or in bad faith. During probation, Employees have no seniority rights other than those rights specifically set forth in this Agreement. Any Employee rehired after termination of seniority shall be considered a new Employee for purposes of this section.

10.1 All employees shall be on probation for three (3) months worked from the date of last hire: however the probationary period shall be extended by time spent on modified duty. During the probationary period the Employer may terminate an employee for any reason at its discretion which shall not be subject to a grievance under the grievance procedure. During probation, employees have no seniority rights other than those rights specifically set forth in this agreement.

10.2 The probationary period of any employee may be extended by mutual agreement.

ARTICLE 15

SENIORITY

1. All employees shall be on probation for sixty (60) days worked from the date of last hire; however, the probationary period shall be extended to ninety (90) days worked if the Company gives written notice to the Union during the first sixty (60) days worked stating the reason for the extension and the probationary period will be extended by time spent on modified duty. During the probationary period the Company may terminate an employee for any reason at its discretion which shall not be subject to a grievance under the grievance procedure however the Company shall not act in a manner that is arbitrary, discriminatory or in bad faith. During probation, employees have no seniority rights other than those rights specifically set forth in this agreement. Any employee rehired after termination of seniority as provided in Section 15 below shall be considered a new employee for purposes of this Section.

11.03 a] A new full time Employee shall be considered on probation and seniority shall not commence until such time as he has worked seventy-five (75) working days from his last date of hire. For the purposes of determining the probationary period, each part or full day of absence from work, for any reason, will be added as an additional full day that is required to be worked to the stipulated seventy-five (75) day probationary period.

ARTICLE XV

SENIORITY

ARTICLE 18

SENIORITY

Section 2: Seniority shall be established on the basis of continuous full-time service with the Company at its Perry plant. A full-time employee, after three (3) months, shall be a regular employee and shall have seniority. Prior to attaining seniority, an employee is known as a probationary employee. If during probation six (6) consecutive days or more are missed for any reason, or if six (6) consecutive days or more are spent on restricted duty assignment, all days absent and all days spent on restricted duty will be added to extend the probationary period of the concerned employee. It is understood that the Company may, at its sole discretion, discipline or terminate a probationary employee and that no grievance concerning such discipline or termination shall be filed or processed in his behalf.

The difference between the parties relates to the length of time an employee can be on probation. The Union proposes 60 days while the Employer retains its current standard of 3 months. The comparable Canadian Agreements run from 60 to 75 day probationary periods.

The Union proposes that the Employer be required to act in a manner that is not is arbitrary, discriminatory or in bad faith in terminating the employment of a probationary employee. This wording is adopted from the Cargill language. It provides new employees with protection against arbitrary treatment during their probationary period. Probationary employees are entitled to grieve Human Rights and other employment standards violations in accordance with the principles set down in the Parry Sound case, [TAB 34]. At common law, employers have an obligation of good faith and fair dealings in the matter of the termination of employees: see [Wallace v. United Grain Growers, [TAB 35]. The arbitrary/discriminatory/bad faith prohibition proposed by UFCW codifies the common law requirements.

13.1 In addition to other rights provided in this Collective Agreement, the following provisions shall apply to circumstances of temporary and permanent shut downs / closures.

13.2 In the event of a bonafide emergency resulting in a temporary shut down, the Employer shall provide Employees with as much notice as possible.

13.3 In the event of any other temporary shut down, Employees shall receive thirty (30) days notice.

13.4 In the event of a permanent shut down or closure of the plant, Employees shall receive severance pay in the following amounts:

i) Less than one (1) year of service Two (2) weeks

ii) One (1) to two (2) years of service Three (3) weeks

iii) Two (2) to three (3) years of service Eight (8) weeks

iv) Three (3) to four (4) years of service Twelve (12) weeks

An additional four (4) weeks for every subsequent year of service.

No proposals

The Employee Handbook, p. 25 sets out the notice that will be paid for employees who are terminated without just cause.

C. Commentary:

The Union’s proposal simply provides a reasonable amount of severance pay to employees in the event of permanent shut down or plant closure. The provision is a fair reflection of the Employer’s current practice of providing severance notice. In the event of plant closure, most employees would be required to re-locate to find work in other parts of Alberta or Canada.

14.1 Seniority shall be defined as length of continuous service with the employer.

14.2 Qualifications and ability being sufficient, job assignments, filling of vacancies, promotions, transfers, staff reductions, layoffs, reduction of hours, recalls, vacation selection, and preference in scheduling (including shift preferences) shall be governed by seniority.

14.3 Vacancies, promotions, and transfer opportunities shall be posted for fourteen (14) working days and shall state job titles, rates of pay, scheduled hours, level assignments, and departments. Such positions shall be filled within an additional fourteen (14) days from the end of the posting period.

14.4 The employer shall provide the Union with a seniority list and update it upon request.

14.5 It is understood that senior employees can select job assignments, vacations, and preferred schedules based on their seniority on an upward, lateral, or downward basis. Employees can claim, on the basis of their seniority, vacancies, promotions, and transfers, through bidding, also on an upward, lateral, or downward basis.

25.1 Seniority for Full-time Employees is defined as the length of a Full-time Employee's service with the Employer from the last date of hire as a Full-time Employee.

If two (2) or more Employees have the same seniority date, the order of seniority for such Employees shall be established reverse alphabetically based on the last name.

25.2 The Employer agrees to provide a seniority list to the Union every three (3) months.

25.3 An Employee shall lose all entitled seniority and shall be deemed to have terminated employment if the Employee:

(a) is discharged for cause and is not reinstated;

(b) resigns;

(c) fails to report for three (3) consecutive scheduled shifts except for circumstances beyond the employee’s control; or

(d) retires from the employ of the Employer.

ARTICLE 15

2. After sixty (60) days worked, regularly scheduled full-time employees shall establish seniority rights. Seniority is defined as length of continuous service dating from the employee's most recent date of hire and will be applied in the following order:

A. First - within the Division

B. Second - within the plant

3. Seniority within the plant will operate within each of the following divisions for purposes of job movements:

A. Slaughter Division

Yards, Skinning, Viscera, Trim/Offal Ship, Specialty Offal/Heads, Coolers/Transfer, Paunch, Fresh Offal, and Hides

B. Fabrication Division

Breaking, Ribs and Rounds, Loins, Chucks/Arm Boning, Loosemeats, Packaging, Wizard, Trim and Grind, Hamburger and Box Loadout/Storage Departments

C. Maintenance Division - Maintenance, Warehouse, Utility and Rendering Departments

D. Quality Assurance Division

SENIORITY

4. In all cases of job assignments, promotions, transfers, reductions in force, and recalls to work the Company will give full consideration to ability and qualifications. If ability and qualifications are sufficient among competing employees, seniority will prevail. The company agrees that they will utilize the senior employee when filling temporary job assignments. In unanticipated situations, the union recognizes the company may be required to utilize a junior employee but will utilize the senior employee in a timely fashion. It is further understood that a senior employee is not required to fill a temporary job vacancy long term but will be given the option to perform the temporary job vacancy. The intent of the foregoing language is to reinforce the concept of "senior may, junior must" for employee movement."

11.01 Seniority for the purposes of this Agreement shall be defined as Company Seniority and Departmental Seniority. Company Seniority shall apply to all Employees of the Company, and Departmental Seniority shall apply to Employees within their respective departments.

11.02 Company Seniority shall mean the length of an Employee's continuous employment with the Company and Departmental Seniority shall mean, the Company Seniority of the Employee's within a Department.

ARTICLE XV

SENIORITY

Section 1: It is the policy of the Company to follow seniority in order that full-time employees with the greatest amount of service shall have the greatest amount of employment security and opportunity for promotion.

However, efficient operation of the plant and fairness to all requires that physical fitness and ability be considered as well as seniority in all matters covered in this Article. Full-time employees with the greatest seniority shall have preference in layoffs, call backs, promotions, demotions, and transfers to available permanent vacancies.

Section 2: Seniority shall be applied on a divisional basis within the plant, and shall under no circumstances overlap from one division to another, except where the provisions of Sections 21, 22, 23, 26, 27 and 28 shall apply. The divisions for seniority purposes are:

1. Slaughter Division

2. Processing Division

3. Hides/Tannery Division

Complex Maintenance Division

Section 4: Seniority operates both on a departmental and divisional basis.

Employees, upon attaining sixty (60) days of seniority with the Company, shall have the right to bid jobs under the provisions of this Article.

Section 1: It is the policy of the Company to follow seniority in order that full-time employees with the greatest amount of service shall have the greatest amount of employment security and opportunity for promotion.

However, efficient operation of the plant and fairness to all requires that physical fitness and ability be considered as well as seniority in all matters covered in this Article. Full-time employees with the greatest seniority shall have preference in layoffs, callbacks, promotions, demotions, and transfers to available permanent vacancies.

Section 2: Seniority shall be established on the basis of continuous full-time service with the Company at its Perry plant. A full-time employee, after three (3) months, shall be a regular employee and shall have seniority. Prior to attaining seniority, an employee is known as a probationary employee. If during probation six (6) consecutive days or more are missed for any reason, or if six (6) consecutive days or more are spent on restricted duty assignment, all days absent and all days spent on restricted duty will be added to extend the probationary period of the concerned employee. It is understood that the Company may, at its sole discretion, discipline or terminate a probationary employee and that no grievance concerning such discipline or termination shall be filed or processed in his behalf.

Section 3: Seniority operates on a departmental, divisional, and plant-wide basis.

The Union proposes seniority as the main tool for ensuring job security for employees based on their years of service. The Employer proposes a definition for seniority but does not propose to apply the seniority principle for any purpose other than vacation scheduling.

The comparison agreements set out in considerable detail the use of seniority in both the Canadian comparable plants and two U.S. plants of Tyson. Seniority in all of these plants is accepted as the principle for determining job assignments, filling of vacancies, promotions, transfers, staff reductions, lay-offs, reduction of hours, recalls, vacation selection and preference in scheduling.

In moving from the unregulated, non-union environment to a collective agreement, seniority is one of the touchstones of fairness that employees expect they will gain when a collective agreement is concluded.

The Union proposal is consistent with the industry comparables and is a basic standard for developing fair distribution of work, shifts, and job security.

15.1 All employees shall have full-time jobs working a standard work day of eight (8) hours and a standard work-week of forty (40) hours. Regular days of work shall be Monday to Friday.

15.2 The employer shall prepare and post weekly schedules one week in advance. Schedules shall indicate start and finish times and employees shall be paid for all time between those start and finish times. Employees shall not be required to be at work before their designated start time or after their designated finish time.

15.3 Schedules may be changed, but employees must receive a minimum of seventy-two (72) hours notice or the employee can refuse to report for work. If an employee chooses to come to work when their schedule has been changed, no less than double time shall be paid for no less than four (4) hours.

15.4 Overtime shall be voluntary. Employees are to be offered overtime in order of seniority.

15.5 Employees shall be entitled to one thirty (30) minute unpaid lunch period and two twenty (20) minute paid rest periods. Rest periods shall be scheduled as close as possible to the middle of the first half and to the middle of the second half of each shift. Lunch periods shall be scheduled as near as possible to the middle of each shift.

15.6 It is understood that this article shall be interpreted to achieve its goals; that is, all time spent bringing service or value to the employer shall be paid time. Rest periods shall only be used to provide rest to employees for continuous uninterrupted twenty minute periods of time. "Donning and doffing" shall be done in time frames outside of the 30 minute lunch period and both 20 minute break periods and shall be paid time. The employer recognizes the vital role that rest and lunch breaks play in ensuring employee health and safety.

15.7 Employees who choose to work overtime shall receive time and one-half (1½X) after completing their eight (8) hour day. Double time (2X) shall be paid after working twelve (12) hours in a day.

15.8 Saturday work shall be voluntary. Hours worked on Saturday shall be paid at the rate of time and one-half (1½X). Saturday hours exceeding an eight hour shift shall be paid at double time (2X).

15.9 Sunday work shall be voluntary. Hours worked on Sunday shall be paid at the rate of double time (2X). Sunday hours exceeding an eight hour shift shall be paid at double time and a half (2½X).

15.10 The employer shall provide a ten dollar ($10.00) meal allowance if overtime work continues more than two (2) hours beyond the end of an employees regular shift.

15.11 The employer shall provide a paid fifteen (15) minute rest period at the commencement of overtime and an additional fifteen (15) minute paid rest period after each two hour block of subsequent overtime.

15.12 Employees shall be allowed to take reasonable breaks with pay for religious reasons where their faith is of significant personal value. Such breaks can be taken at appropriate times, and, where privacy is required, the employer shall provide an appropriate place in the plant.

15.13 No employees shall be required to work on Christmas Day, Boxing Day, New Years Day, Good Friday and Easter Sunday.

15.14 Where Employees and the Union consent, compressed work-weeks shall be allowed.

11.1 Hours of Work

The Employer retains the right to schedule hours of work of Employees as is necessary to ensure efficient operations and to provide coverage for the determined hours of operation.

11.2 Regular Work Schedules and Compressed Work Week Schedules

Regular schedules for Employees shall be defined as up to eight (8) hours per day, averaging forty (40) hours per week and averaging five (5) days of work per week as determined by the Employer.

The Employer may also implement schedules with variable hours of work per day, including compressed work week schedules, which average up to forty (40) hours per week over the rotation cycle of the schedule as determined by the Employer.

Specifically for Employees in the Maintenance Department, regular schedules for Employees on compressed work week schedules shall be defined as up to eleven (11) hours per day, averaging forty-four (44) hours per week over the rotation cycle of the schedule as determined by the Employer.

Specifically for employees on compressed work week schedules in Boiler/Refrigeration operations and Parts Department, regular schedules shall be defined as up to twelve (12) hours per day, averaging forty-two (42) hours per week over the rotation cycle of the schedule as determined by the Employer.

11.3 Scheduled days off

Employees shall be entitled to two (2) consecutive days off each week except where schedule changes or shift rotation on an Employee’s regular schedule may result in a variation such as one (1) day off at the time of the change.

11.4 Employees shall be entitled to one (1) fifteen minute paid rest break and one unpaid meal break of one-half (½) hour on each regularly scheduled day of work as outlined in Article 11.2.

Specifically, employees assigned to continuous operation in Boiler/Refrigeration operations shall take their breaks on a paid basis at the convenience of operations.

11.5 Overtime

If an Employee is required to work in excess of the scheduled hours per day or compressed work week hours per day as outlined in Article 11.2, the Employee will be paid one and one-half times (1 1/2x) the Employee’s regular rate for the additional hours work and double their regular rate for any additional hours after four hours of overtime.

If an Employee works less than the hours of a regular work schedule or compressed work week schedule due or absences, reduced work hours during the regular schedule or other reasons, these hours must be made up before overtime is payable.

Recognized holiday pay is not considered hours worked for the purposes of calculating overtime.

11.6 No Maximum or Minimum

The hours of work as stated in this Article are not to be construed as a guarantee, as a minimum nor as a restriction for any maximum of hours to be worked.

11.7 Shifts

The Employer retains the right to transfer Employees between jobs and shifts to meet the needs of the business, as determined by the Employer.

ARTICLE 5

HOURS OF WORK AND REST PERIODS

1. The Company intends to operate a standard workday of eight (8) hours and a standard workweek of forty (40) hours, but this will not be a guarantee of hours per day or per week. For payroll purposes the work week shall start at 12:01 a.m. on Sunday and end at midnight Saturday evening. Special rules for Maintenance are found in Exhibit E.

2. The Company will schedule hours of work in accordance with production requirements and may determine the number of hours per day or week operations or services shall be carried on. The Company has the right to establish and change work schedules but will give employees the following notices of schedule changes in writing when such changes are due to circumstances within the Company's control:

A. Twenty-four (24) hours of notice prior to a change in shift starting time;

B. Notice of Saturday work by the preceding Wednesday; and,

C. Notice of shift change one week prior to the effective day of the change;

D. Notice of start times for first and second shift slaughter and fabrication.

3. The Company will provide each employee the following rest periods on his/her shift each day:

A. A rest period twenty-five (25) minutes long [twenty (20) minutes paid rest plus five (5) minutes unpaid personal time] prior to lunch beginning between two (2) to three and one-half (3 1/2) hours after the start of his/her work; the time lines for first break remain as per the current collective agreement, with no exceptions,

B. An unpaid lunch period forty (40) minutes long between four and one-half (4 1/2) to six (6) hours after the start of his/her work; the lunch break can be moved forward no earlier than 4 hours from the start of their shift in cases of emergency break downs and employees will be given a 15 minute paid break midway between the end of the lunch break and end of shift. The company will advise stewards of the department when the time of the breaks are changed.

C. A second paid rest period after lunch fifteen (15) minutes long when the employee is required to work more than nine (9) hours except that, for work after eight (8) hours and seven (7) minutes up to nine (9) hours, the Company will provide pay in lieu of a break unless there was an emergency earlier in the day which caused breaks to move forward; and,

A meal allowance of five dollars fifty cents ($5.50) when the employee is required to work after ten (10) hours and seven (7) minutes.

E. Employees working double shifts will be paid for the thirty (30) minutes between shifts at the appropriate rate providing that they work over ten (10) hours and seven (7) minutes and will take their breaks at the same time as the regularly scheduled shift break.

Regarding Saturday work, if the Company has double shifts and if business allows the use of only one shift on Saturday the Company will attempt to alternate day and afternoon work groups.

5. It is understood that the current break times will continue to be taken with the first one-half hour being available for breakdowns and other emergencies. Stewards will be notified of those breakdowns and emergencies whenever possible to tell the employees the reasons why the breaks are being changed. Separately, the current practice regarding overtime breaks (every two (2) hours) will continue.

ARTICLE 7

OVERTIME

1. The Company reserves the right to assign work including overtime work to employees in accordance with requirements determined by management in accordance with the provisions of this Agreement.

2. The Company will pay one and one-half (1 1/2x) the employee's regular hourly rate of pay for all work performed in excess of eight (8) hours per day or forty (40) hours per week. The Company will pay two times (2x) the employee's regular hourly rate of pay for all work performed on Sunday or the day designated as the employee's Sunday.

3. Overtime work in a department shall be offered by seniority to senior qualified employees. The Company will follow the policy of "senior employee may, junior employee must." If no junior qualified employee(s) is available to perform the work, the senior qualified employee(s) will be required to perform the work.

4. Daily and weekly overtime will not be duplicated; only the highest single rate will apply.

5. For purposes of Saturday work up to a maximum of eight (8) hours per day granted off by the Company from Monday through Friday for vacations, bereavement leave, jury leave, verified hospitalization, appearing in court as a subpoenaed witness, and union leave, will count toward the weekly overtime calculation. Paid time off for an unworked holiday will count towards weekly overtime. Employees who work the hours as directed during the first five work days shall be paid time and one-half (1 1/2) for all hours worked on the sixth (6th) work day. Unscheduled work days do not count as a day worked for the purpose of computing overtime.

6. For employees working an eight (8) hour shift, work beyond twelve (12) hours per day is voluntary except in emergencies.

ARTICLE 16

HOURS OF WORK & OVERTIME

16.01 The provisions contained in this Article are established for payroll calculation purposes only, and shall not be construed as a representation or guarantee by the Company or guarantee to any Employee of any time or period of work or employment except as is provided in Section 16.02, Sub-Section a] and b] of this Article.

16.02 a] The normal straight time hours of work for Employees shall be based on eight (8) consecutive hours of work in any twenty-four (24) hour period commencing at the start of the Employee's first regularly scheduled shift for five (5) consecutive days in any calendar week.

b] Notwithstanding Section 16.02, Sub-Section a] above the Union agrees that the Company may reduce without notice, at any time, the normal straight time hours of work of any Employee by up to one hundred and thirty-two (132) regularly scheduled hours in each calendar year provided that such reductions in the employee(s) normal straight time hours of work do not exceed eight (8) hours in any one (1) given week.

It is understood that the provisions of this section [16.02 b] shall not be used in conjunction with the layoff provisions contained in this agreement [Article 12].

16.03 Employees shall be paid overtime as follows:

i] Time and one-half (1.5X) for hours worked in excess of eight (8) hours in a scheduled work day;

ii] Time and one-half (1.5X) for all hours worked on the Employee's first scheduled day of rest;

iii] Double time (2X) for all hours worked on the Employee's second scheduled day of rest;

iv] Employees shall be paid at their applicable Master File straight time rate, except as this rate may otherwise be adjusted as provided in this Agreement, for the first forty (40) hours worked in the Employee's regularly scheduled work week as referred to in Section 16.02, Sub-Section a] of this Article and shall be paid overtime for any hours worked in excess of such forty (40) hours worked in any such work week at the rates specified in Section 16.03 i], ii] and iii] above.

16.04 It is understood and agreed that where an Employee is required to work an overtime assignment, such assignment shall be considered scheduled work. Except in the case of an emergency, beyond the control of Management, the Company shall advise the Employee(s) a minimum of five (5) hours before the end of the Employee(s) regularly scheduled shift after which the overtime was to be worked, if the overtime so scheduled is to be canceled.

16.05 An Employee's work schedule shall not be changed during any one (1) week or cycle for the purpose of avoiding the payment of overtime rates or premiums.

16.06 a] The Company shall give an Employee forty-eight (48) hours notice of a change in shift schedule. Where such notice is not given, the Employee(s) shall be paid time and one-half (1.5X) for the first four (4) hours of regular hours worked following the change. This provision shall not apply to a new Employee's initial assignment to a regular shift.

b] The provisions of this section shall not apply to an Employee requesting a change in shifts for personal reasons. No Employee shall be allowed to change shifts under any circumstances without first receiving the written approval of his immediate Supervisor.

c] The schedule of an Employee may be changed without notice in the event of the unscheduled absence of other Employees, or in the event of an emergency such as a fire, flood, breakdown of machinery or other major disruptions genuinely beyond the control of the Company.

16.07 a] Daily hours of work shall be consecutive, with the exception of a fifteen (15) minute paid rest break in the first half of the work day, a thirty (30) minute unpaid meal period, and a fifteen (15) minute paid rest period in the second half of the day, for a work day of six (6) or more hours. In addition, one minute before each rest period and meal period will be allowed for employees to put their tools, etc., in the designated area, and one minute after each rest break and meal period will be allowed for employees to wash their hands before production starts.

b] The Company may vary the schedule of either the rest break(s) or the meal period for the purposes of overcoming production difficulties that are genuinely beyond the control of the Company, except that the rest break(s) shall not be added to the meal period.

16.08 If an Employee is required to work unscheduled overtime in excess of one (1) hour before and/or beyond his normal shift (or combination thereof which totals one (1) hour, such Employee shall be provided with an allowance of ten dollars ($10.00) in lieu of the Company providing the employee with a hot meal and the time for the overtime meal period. The meal allowance shall be included in the Employee's regular earnings.

16.09 It is understood and agreed that there shall be no pyramiding of overtime hours, rates or premiums contained in this Agreement.

16.10 The Company shall distribute overtime as equitably as practicable among the employees within their respective Department.

Overtime other than complete department overtime will be distributed as follows:

a] Offered to the employee that normally does the job.

b] Offered to other employees in the same department according to seniority providing they can do the job.

c] Offered to employees in a different department according to seniority providing they can do the job.

16.11 An Employee who is called out to work unscheduled overtime shall be paid a minimum of four (4) hours at the applicable overtime rate and will only be required to complete the work called out to perform. In the event the work exceeds four (4) hours, the applicable overtime rate shall apply for all hours worked.

16.12 a] An employee injured at work and unable to complete their shift, as determined by a Medical Physician, shall be paid for the balance of such shift at

such holidays.

4. Re: ARTICLE 16

Section 3: Time and one-half (1-1/2) will be paid for all hours worked in excess of eight (8) in any day. Time and one-half (1-1/2) will be paid for all hours worked in excess of forty (40) in any one week. For purposes of computing overtime (1½ times), hours of pay for an observed Holiday falling on Monday through Friday shall be counted as time worked up to a maximum of eight (8). Work time will be computed from the time employees on a position commence their work until the time worked is stopped at a position, and will be computed to the nearest minute.

After April 1, vacations will be scheduled on a first come, first served basis. In the event that an employee bids or transfers from one department to another after the vacation schedule has been set such employee will not be guaranteed entitlement to the vacation period approved in their previous department in his/her new department. Such employee will have vacation preference subject to availability based on the new department’ s existing schedule for that particular vacation year, and only after the employee becomes "qualified" in the new department.

After April 1, any request by an employee to change his/her approved vacation schedule will be subject to considerations for plant operations and will not be considered if it affects another employees approved vacation even if the employee requesting the change is a senior employee. Vacation scheduling takes priority over Leave of Absence requests.

5. Vacations cannot be accumulated from year to year, but must be taken within twelve (12) months after the last employment anniversary date. Employees cannot waive their vacation and draw pay in lieu of vacation.

6. A vacation schedule shall be prepared and available for review by employees in Human Resources by April 15 of each year for purposes of selecting vacation weeks on a first come, first served basis. Such department vacation schedules will be listed by seniority. The Company sees no foreseeable change in how summer vacations are scheduled.

The Union’s proposal resorts the 10 years plus entitlement to four weeks of paid vacation, consistent with the industry norms. It also permits scheduling by seniority, which the Employer has indicated it will agree to but has not yet provided wording on this issue.

The Union proposed vacation pay based on gross earnings or normal week’s pay whichever is greater. The calculation of pay based on gross earnings ensures that the employees do not suffer a loss of their actual earnings when they take holidays. In the BSE period, employees are required to work 6 days per week for months on end but their holiday pay entitlement remained based on 5 days. "Gross pay" avoids any disputes about what constitutes "normal weekly earnings" and is readily available to the Employee and Employer from the Employer’s payroll records.

20.1 Leave of Absence

Employees with one (1) year or more of service with the Employer may request a leave of absence, without pay, for a period not to exceed four (4) months, upon written application through the Human Resources Department of the Employer. Requests for leaves of absence will be decided on the basis of merit, compassion and the valid operational needs of the Employer. Personal leaves of absence will not be considered during the prime-time vacation period (i.e.: April 1^st – September 30^th), Christmas week and Easter week. If the request is refused, the employee shall be so advised as to the reasons for the refusal.

20.2 Maternity Leave

A) Employees shall request a leave of absence without pay up to a maximum of fifteen (15) weeks because of pregnancy. Such request will be granted, provided the Employee submits to her Employer a request, in writing, for such leave at least two (2) weeks, where possible, prior to the date she intends to commence such leave, together with a certificate from a qualified medical practitioner, certifying that she is pregnant and indicating the estimated date of delivery, or, alternatively indicating the actual date of delivery. Such leave may, at her discretion, commence at any time in the period commencing twelve (12) weeks prior to the estimated date of delivery and ending on the actual date of delivery.

B) Employees will continue to accrue seniority while on maternity leave, and will be entitled to and will accrue any other benefits provided to employees on unpaid leaves of absence (e.g. education leave).

C) Employees will have the option of maintaining their coverage under the Employer benefit plan by pre-paying the cost of those benefits prior to commencing such leave, except that during the period in which the employee on maternity leave is in receipt of sick leave credit payments, weekly indemnity (group insurance), or long-term disability benefits.

D) Where an employee who has qualified for group benefits has a valid health-related reason for absence from work due to pregnancy or maternity and cannot perform her regular duties, she may, regardless of whether she has pre-paid the cost of her benefits apply for sick leave credit payments, weekly indemnity (group insurance), and/or long-term disability benefits as per the Collective Agreement. If the employee’s application is accepted, she shall be entitled to such benefits and accruals as provided by the Collective Agreement to any employee in receipt of sick leave, weekly indemnity (group insurance), or long-term disability benefits.

E) The employee, when returning to work at the end of her leave (maternity or parental leave) shall give the Employer two (2) weeks’ notice of date of return. Where the employee returns to work within the first six (6) weeks following the date of birth, she will be required to submit a certificate from her Doctor, indicating that her resumption in employment will not, in his or her opinion, endanger her health.

F) Employees who choose not to maintain their benefit coverage under the Employer benefit plan will have their benefits reinstated upon return to work.

G) The Employee shall be returned to her former position at the completion of her leave of absence.

20.3 Parental / Adoption Leave

A) An Employee may request a parental or adoption leave of absence without pay for the care and custody of a newborn child or an adoptive child under the law of the Province. Such leave of absence will be to a maximum of thirty-seven (37) weeks. Further, such leave of absence shall be granted provided the employee requests the leave in writing at least two (2) weeks, where possible, before the date specified in the application as the date the employee intends to commence the leave.

The leave will be taken during the first fifty-two (52) weeks after the birth of the child or, in the case of an adoption, after the child comes into the custody of the employee.

ARTICLE 11

LEAVES OF ABSENCE

1. The purpose of a leave of absence is not to provide extended vacations. The purpose of a leave of absence is to provide an excused absence from work for circumstances which are uncommon, unforeseen, or unusual and which usually cannot be planned in advance. Regular full-time employees with one (1) year or more of continuous service may request a leave of absence without pay for a period not to exceed fourteen (14) days which may be extended another fourteen (14) days for special cause. The leave must be requested in writing in advance. Company approval will depend on the reason for the leave, its duration, the effect on operations, the employee's length of service and general performance. No more than one percent (1%) of the bargaining unit employees will be granted leave at any one time. Employees must exhaust all vacation before commencing an unpaid leave of absence exceeding three (3) days. Subject to the conditions above, employees requesting a leave of absence to travel overseas for special circumstances will not be granted a leave of absence more than once every three (3) years. An employee may request a leave of absence to not work a scheduled overtime shift on Saturday or their designated Saturday, and once the original leave is approved it will not be revoked at a later date. The Company may, however, ask the employee to change it for the Company's convenience.

2. Upon proper notice the Company will work with the Union to grant unpaid leaves of absence at the earliest convenient time to employees who are elected or appointed to a full-time position with the Union. No more than two (2) employees may be on leave of absence for this purpose at any time, and such leaves shall not exceed either the term of this agreement or the term of office whichever is less. Within one (1) month's notice of the employee's desire to return to work for the Company, the employee shall be placed on his/her previous job or another job at an equal rate of pay subject to seniority and satisfactory performance of the required work. If the employee would not otherwise have retained his/her previous job and is not placed on a job carrying an equal rate of pay he/she shall, subject to seniority, be placed on a job which he/she can satisfactorily perform. An employee on such leave of absence will accumulate seniority while on such leave.

4. Upon request the Company will grant employees unpaid leaves of absence to serve as elected members of the Provincial Legislature or the Parliament of Canada for a period not to exceed either the term of this agreement or term of office whichever is less. Within one month's notice of the employee's desire to return to work for the Company, the employee shall be placed on his/her previous job or another job at an equal rate of pay subject to seniority and satisfactory performance of the required work. If the employee would not otherwise have retained his/her previous job and is not placed on a job carrying an equal rate of pay he/she shall, subject to seniority, be placed on a job which he/she can satisfactorily perform.

ARTICLE 13

BEREAVEMENT LEAVE

The Company will grant regular full-time employees scheduled for work paid leaves of absence to make arrangements for and attend the funeral or memorial service of immediate family members or bereavement upon proof of the death of an immediate family member as defined in this Article. The Company will pay up to a maximum of twenty-four (24) hours at the employee's regular hourly rate for time lost on regularly scheduled consecutive work days which fall on three (3) consecutive days, one of which must be the day of the funeral or memorial service for a spouse, child, step-child, parents, step-parent, brother, sister, mother-in-law, or father-in-law. Regular full time employees will be eligible for bereavement leave only in the instances of the death of an employee’s spouse, child, parent, brother or sister. The Company will pay up to a maximum of eight (8) hours at the employee's regular hourly rate for time lost on a regularly scheduled workday which falls on the day of the funeral of either the employee's or the employee's spouse's natural grandparents. To receive a paid leave of absence under this provision, regular full-time employees must notify the Company about the need for the leave no later than the start of their shift on the first day of absence; they must attend the funeral or memorial service; and, if additional unpaid leave is necessary, they must request additional time off prior to the funeral leave. If the Company requests, the employees must furnish satisfactory proof for the Bereavement leave request. Subject to the conditions above, the Company may grant employees on probation unpaid leaves of absence.

ARTICLE 14

MATERNITY / PARENTAL LEAVE

1. The Company will grant pregnant employees leaves of absence without pay under the following conditions:

A. The pregnant employee must have worked for the Company at least six (6) consecutive months when the leave begins; and,

B. Under normal circumstances the leave period can begin no sooner than twelve (12) weeks immediately preceding the estimated date of delivery; and,

C. The leave must include at least six (6) weeks immediately following the actual date of delivery; and,

D. The leave period cannot exceed eighteen (18) weeks plus any additional time between the estimated and actual dates of delivery as defined by the Alberta Employment Standards Code plus up to an additional three (3) weeks following delivery if the employee furnishes a medical certificate certifying the employee's inability to return to work.

2. The Company reserves the right to require a medical certificate stating that the employee is pregnant and estimating the date of delivery.

3. The Company reserves the right to require a pregnant employee to begin maternity leave during the twelve (12) weeks immediately before the estimated date of delivery rather than allowing the employee to work up to the date of delivery by giving written notice of the Company's determination that the pregnancy interferes with the employee's work performance.

4. The employee should give the Company at least two (2) weeks written notice of the day the employee plans to begin maternity leave. The employee must give the Company at least two (2) weeks written notice of the day the employee plans to resume work.

The employee will be reinstated without loss of seniority to their previous job or a comparable job at the same rate of pay if they resume work.

PARENTAL/ADOPTION LEAVE

1. Employees are entitled to a total of 37 weeks for the purpose of Parental Leave combined between both parents.

2. New mothers that wish to take Maternity and Parental Leave must take the leaves consecutively.

The Union’s proposals restores the Employer’s former policy on bereavement leave by restoring grandchild to the definition of immediate family.

The Union’s proposal on maternity and parental leaves set out the entitlements clearly for employees and provide certainty to the entitlements required both by the Employment Standards Act and the Human Rights and Citizenship Act, i.e. the Parcel’s decision on entitlements to disability plans during maternity.

The remaining leave proposals are consistent with the industry standard in Alberta and with the current employment practices at Lakeside.

The Employer’s proposal on union leave is unduly restrictive in its approach to union leave. In addition, the Employer continues to make an issue of how employees on Union leave are paid. Normally, the Employer continues the pay and benefits of employees off on union leave and asks the Union to reimburse the Employer for the wage costs. This practice ensures that employees on union leave are not penalized in their pay and benefits for having engaged in union activity. This matter is currently before the Labour Relations Board. A collective agreement provision clarifying the practice is required. The Union’s proposal requires amendment to reflect the practice.

21.1 All Employee rights, privileges, and benefits enjoyed prior to certification shall continue and this Collective Agreement shall be interpreted to ensure that this occurs. In the event a pre-existing privilege, right or benefit has been altered and there is evidence of a pre-existing superior right, benefit, or privilege, the Union shall be entitled to choose which right, benefit, or privilege shall prevail.

No proposal

In any newly certified bargaining unit, the Union runs the risk of being unaware of all of the prior benefits and privileges enjoyed by employees prior to entering into a collective agreement. This boiler-plate type of clause merely preserves those benefits and privileges that employees enjoyed.

For instance, in its disclosure to the Union, the Employer provided a copy of a 1997 benefits booklet. We now have production before the DIB of a 2000 benefits booklet. This clause is a type of errors and omissions clause which preserves existing benefits for employees that can result from less than full disclosure of existing terms.

22.1 Pay Classes and Rates of Pay and Levels shall be as set forth in Appendix "A" and shall form part of this Agreement.

22.2 Effective date of ratification, all Employees shall be placed on the appropriate pay scale in Appendix "A".

22.3 Employees whose rates currently fall between the start and six month rates identified in Appendix "A" shall move to the six month rate in their classification.

22.4 Job Functions with corresponding Levels shall be as set forth in Appendix "B" and shall form part of this Agreement.

22.5 All Employees shall receive a lump payment equivalent to one dollar ($1.00) per hour for every hour worked between August 27, 2004 and the date of ratification.

23.1 Shift Premium

An additional seventy-five ($.75) cent premium shall be paid to all employees for all time worked after 3:30 PM and before 7:00AM.

23.2 Forklift Premium

An additional one dollar ($1.00) premium shall be paid to all employees for all time spent operating forklifts, deep-reaches, pallet jacks, zamboni’s, scissor lifts, snorkel lifts and any similar equipment.

23.3 Roamers Premium (Maintenance Lead Hand)

An additional one dollar ($1.00) per hour shall be paid to all employees for all time spent working as a Roamer.

23.6 Lead Hand, Trainer, and Quality Control Relief

If an Employee relieves in any of these classifications they shall receive the higher rate of pay for all time spent relieving.

23.7 Relief Work

Where an Employee relieves for anyone in any other job classification, the Employee shall be paid the higher rate of pay for all time spent relieving.

The Union proposes pay increases of $1/hour for most classifications in each of the four years of the agreement. The Union proposes retroactive pay as set out in Paragraph 22.5 above ($1/hour for each hour worked from August 27, 2004).

Classification adjustments:

The Union’s wage scale moves laundry and janitorial classifications to the wage rates set for processing classification. Quality assurance and slaughter training rates are moved to processing training rates. An adjustment is proposed for maintenance labourers with three years or more of continuous employment to add $1.85/hour premium. The Union has compressed the time from the start wage to base rate from 21 or more months to 6 months.

14.1 Classifications and Pay

The classifications and pay applicable to all Employees shall be as set out hereinafter in Schedule "A" of this Agreement.

14.2 Payment of Wages

Employees will be paid by direct deposit every two (2) weeks with up to a one (1) week period after the end of a pay period allowed for payroll processing.

14.3 Shift Premium

A shift premium of thirty-five ($0.35) cents per hour is paid for each hour worked between 18:00 hours (6:00 P.M.) and 06:00 hours (6:00 A.M.) in any twenty-four (24) hour period.

14.4 When an Employee is assigned by the Employer to perform the duties of a higher job classification for a period of one (1) full pay period or more, the Employee’s pay rate shall be paid according to the rate applying to the higher job classification.

Lakeside unilaterally implemented a $0.30/hour increase to the hourly rates of pay in March, 2005. The Employer has proposed additional wage increases of $0.80 to the hourly rates over the course of a proposed 6 year agreement. The Employer’s proposal contains a reduction in the shift premium hours from its current practice of paying shift premium for all B shift hours.

Ratification bonus: (Service dates as of the date of ratification)

15 years of service - $1500

14 years of service - $1400

13 years of service - $1300

12 years of service - $1200

11 years of service - $1100

10 years of service - $1000

9 years of service - $900

8 years of service - $800

7 years of service - $700

6 years of service - $600

5 years of service - $500

4 years of service - $400

3 years of service - $300

2 years of service - $200

1 year of service - $150

90 days – 1 year service - $100

Retroactivity: beginning January 3 – maximum 40 hours per week, general increases only, does not apply to grade increases.

Wages increase 1^st Monday after ratification - $.75/hr

January 2, 2006 - $ .25/hr

January 1, 2007 - $ .25/hr

July 2, 2007 - $ .25/hr

January 7, 2008 - $ .25/hr

July 7, 2008 - $ .25/hr

ARTICLE 8

WAGES

1. Effective the 1st Monday after ratification, an employee's starting rate will not be less than $13.75 per hour and will be increased to the base rate the 1st Monday after six (6) months of employment. When a new employee is accepted as fully qualified by his supervisor, the new employee shall be paid the rate of the job they are performing.

The hourly rate listed above will be increased during the term of this Agreement as follows:

Starting No After

Less Than 6 mos.

Production $13.75 $15.45

Maintenance $14.75 $16.35

*Also commonly referred to as either the "base" or "apprentice" rate.

The hourly rates listed above will be increased during the term of this Agreement as follows:

Effective January 2, 2006, by twenty-five cents ($.25);

A wage schedule reflecting the hourly rates of pay during the term of this Agreement is included at the end of Exhibit B.

Cargill Foods will recognize 100% of experience towards the pay progression for all Cargill rehires. Cargill Foods will recognize 50% of the experience towards the pay progression for all employees from a different facility. The recognition for experience and the rate of pay will be completed prior to hiring. The company will notify the union in writing of all employees being paid the experienced rate on an ongoing basis. The recognition of experience will only be observed for the pay progression.

2. All jobs covered by this Agreement are placed in pay levels listed in Exhibit B. Full-time employees may become qualified and perform jobs which pay a premium above their applicable rate on the pay progression scale. An employee is considered qualified when he/she can perform the job without instruction or assistance. A qualified full-time employee performing a job level higher than apprentice is paid as follows:

Job Level Production Maintenance

1 Pay Scale Plus . . . $ .45 $1.00

2 Pay Scale Plus . . . $ .85 $1.75

3 Pay Scale Plus . . . $1.35 $4.50

4 Pay Scale Plus . . . $1.60 $6.00

5 Pay Scale Plus. . . $2.25 $9.00

6. Pay Scale Plus . . . $0.00 $10.00

The production lead person rate shall be fifty cents ($.50) per hour above the highest rate in the department providing the lead person is qualified on the highest rated job in the department or Level 4, whichever is higher. For example, if the highest rate in the department is a Level 3, the lead person would receive Level 3 plus $.50 per hour. If the highest rate in the department is a Level 2, the lead person would receive a level 4.

3. Employees who work between the hours of 6:00 p.m. and 6:00 a.m. will be paid thirty-five cents ($.35) per hour over their regular rate.

4. Hourly pay for temporary and part-time employees who are performing bargaining unit work not covered by the wage schedule shall be determined in accordance with Article 8, Section 5.

5. If the Company creates a new job classification, or combines existing job classifications, or substantially changes the duties of existing job classifications, the Company will establish a wage for such new or changed job classification and notify the Union within thirty (30) days. The Union has seven (7) calendar days thereafter to object to the rate set, and the matter will then be subject to negotiations between the Company and the Union. If negotiations do not successfully resolve the matter, the matter will be subject to the Grievance Procedure as outlined in Article 20.

6. When an employee is temporarily assigned to a higher rated job which that employee is qualified to perform without instruction or assistance, he/she will be paid the higher rate for all time worked on that higher rated job.

7. When an employee is temporarily assigned to a lower rated job, he/she will be paid his/her regular rate for all time worked on that lower rated job except when the assignment results from the employee's request or a change in accordance with seniority. Employees being accommodated due to a work-related injury or illness shall receive their regular rate until it is medically determined that the employee can no longer perform their regular job on a permanent basis or the employee bids to another job. When it is medically determined that the employee can no longer perform his/her regular job, he/she will receive the rate of the job he/she is performing with notice to the union.

8. Employees who bid to a job with a lower level than they are currently qualified for will have their pay decreased to the lower level on the day they are moved into the lower rated job. Employees who bid to a higher rated job will have their pay increased only when they are qualified to perform the higher rated job.

WAGE SCHEDULE

Effective Starting No After

Date Less Than 6 months

1^st Monday After Ratification $13.75 $15.45

January 2, 2006 $14.00 $15.70

January 1, 2007 $14.25 $15.95

July 2, 2007 $14.50 $16.20

January 7, 2008 $14.75 $16.45

July 7, 2008 $15.00 $16.70

Effective Starting No After

Date Less Than 6 months

1^st Monday After Ratification $14.75 $16.35

January 2, 2006 $15.00 $16.60

January 1, 2007 $15.25 $16.85

July 2, 2007 $15.50 $17.10

January 7, 2008 $15.75 $17.35

July 7, 2008 $16.00 $17.60

The Maintenance Pay Progression is subject to the Maintenance Apprenticeship Program found in Exhibit F.

17.01 Shift Premiums

Thirty-five cents ($0.35) per hour for any shift that is started between 15:00 hours (3:00 P.M.) and 03.59 hours (3:59 A.M.) provided that such shift that is started is completed as scheduled.

Thirty-five cents ($0.35) per hour worked after 15:00 hours (3:00 P.M.) for shifts starting between 10:00 hours (10:00 A.M.) and 15:00 hours (3:00 P.M.).

17.02 a] First Aid Certificate

Twenty-five cents ($0.25) per hour for every hour of scheduled work worked by regular employees holding a valid first aide attendant certificate in accordance with Alberta Regulations.

17.03 The premiums contained in this Article shall not be included in calculating overtime rates but shall be paid for all overtime hours worked in conjunction with such shift.

ARTICLE 19

PAY CLASSES, JOB FUNCTIONS & RATES OF PAY

19.01 The rates of pay for the typical functions in the established pay classes for Employees shall be set out in Appendix "A" attached hereto and forming part of this Agreement.

19.02 Where a new job function is established, or where the content of existing job functions are substantially changed, or an Employee is improperly classified, the pay classes, rate(s) of pay, and other related matters shall be established by the Company. In the event the Union disputes the Company's decision on the matter and fails to negotiate the difference, the matter may be a subject of a complaint and may be referred to arbitration. The Arbitrator or Board of Arbitration, shall have the power to determine appropriate pay classes, rates of pay, and other related matters in issue, effective the date the job functions were changed or new job functions were established. The Company shall, however, establish the rates of pay for new job functions until agreement, or the decision of an Arbitrator or Board of Arbitration has been given, at which time the rate of pay shall be retroactive for the hours worked in the new pay class.

19.03 a] When a regular employee works in a higher pay class the employee shall be paid the higher rate of pay for all the hours worked in that pay class. In the case of an employee working more than four (4) hours in a higher pay class the employee shall be paid the higher rate for the entire shift, including maintenance employees.

b] The provisions of Section 19.03 Sub-Section a] shall not apply to employees in training, provided they are accompanied by the employee responsible for their training.

XL Beef provided wage increases in the amount of $2 /hour over the course of its four year agreement. The increases put $0.70/hour on the rates at the start of the new agreement (April 5, 2005). $0.25/hour on March 31, 2006, $0.30/hour on March 31, 2007, $035/hour on March 30, 2008, and $0.40/hour on October 1, 2008. [Binder 1, Tab 6]

We have provided the DIB with a detailed comparison of the Lakeside economic proposals and the recently signed Cargill agreement elsewhere in this Brief.

The Union’s wage proposal accomplishes a condensed wage grid with increased equity among classifications. Lakeside historically has maintained a direct relationship between its rates of pay and those of Cargill. In its "Reality Check – Final Edition" [Binder 3, Tab 1] the Employer boasted: "When we say that Lakeside’s pay and benefit package, particularly for our veteran employees (15+ months) is as good or better than Cargill, we are telling it how it is." There is nothing to suggest that Lakeside no longer requires a competitive wage grid with Cargill. The recruitment issues raised by the Union’s bargaining committee would point to the opposite conclusion. New meat packers are opening as well in Alberta and offering attractive start rates to experienced cutters.

The Union’s shift premium restores the hours that are eligible for shift differential to the Employer’s pre-certification practice.

The remaining premium pay and relief pay provisions are standard provisions.

The Employer shall pay the full cost for Alberta Health Care and the premiums for all Employees.

Employees shall be entitled to this benefit immediately following their first three (3) months of employment with the Employer.

24.1 Group Benefit Plan

The Employer shall pay the full cost of a group benefit plan which is set forth as Appendix "C" and shall form part of this Agreement.

Employees shall be entitled to the following benefits upon completing their first three (3) months of employment:

i) Extended Medical

ii) Vision Care

iii) Dental Care

iv) Short Term Disability

v) Long Term Disability

vi) Accidental Death and Dismemberment

vii) Life Insurance

viii) Group Retirement Savings Plan

24.2 Paid Sick Days

The Employer agrees to provide all Employees with twelve (12) paid sick days per calendar year.

24.3 Pension Plan

The Employer agrees to participate in and contribute to the Canadian Commercial Workers’ Industry Pension Plan as follows:

Contributions shall be paid at a rate of one dollar ($1.00) per hour for all hours paid by the Employer to Employees in the bargaining unit (hours paid shall include hours worked, vacation, general holidays, sick days, jury duty, bereavement leave, union leave, etc.), up to a maximum of the basic work week. (40 hours)

Contributions along with a list of Employees for whom they have been made, the amount of the weekly contribution for each Employee, and the number of hours worked or paid according to the above, shall be forwarded by the Employer within the twenty-one days (21) days after the close of the Employer’s four or five week accounting period. The Employer agrees to pay interest at the rate established by the Trustees on all contributions not remitted as stipulated above.

24.4 Bonus for Senior Employees / Pre-Retirement Income Bonus

Employees who service exceeds five (5) years shall receive an annual longevity bonus of one thousand dollars ($1000.00) deposited directly to their account on the anniversary of their employment.

Employees whose service exceeds ten (10) years shall receive this benefit retroactively to the fifth year anniversary of their employment.

25.1 Travel Allowance

The Employer shall provide a travel allowance of forty-five cents ($0.45) per kilometer to each employee required to use their personal vehicle during their shift in the course of their work day.

25.2 Bus Allowance

The Employer agrees to subsidize the cost of transporting Employees from Medicine Hat so that Employees who make use of the busing services are limited to a total cost of one hundred dollars ($100.00) per month. In the event that any buses break down causing a delay in Employees arriving at work, the Employer agrees that employees will not be disciplined in any way due to lateness.

Employees who do not reside in Medicine Hat but who travel in excess of twenty-five (25) kilometers to work shall receive a monthly transportation allowance of fifty dollars. ($50.00)

25.3 Meal Tickets

The Employer will ensure that the cost of meal tickets shall not increase and the value of the tickets shall not decrease.

The Employer agrees that no Employees will be denied a meal for not having a meal ticket. In such cases, the Employer shall arrange for an automatic payroll deduction for the cost of the meal ticket.

The Employer will provide a meal allowance of ($10.00) to C-Shift employees that cannot purchase a meal due to the cafeteria being closed during their breaks and meal period.

25.4 Employee Referral Bonus Program

The Employer agrees to continue the Employee Referral Bonus Program.

Employees shall receive a one thousand dollar ($1000.00) payment from the Employer on the first payday following the completion of three (3) months of employment of the Employee that was referred. The Employer agrees to provide the payment on a separate cheque.

25.5 Tuition Refund Plan

The Employer agrees to continue its Tuition Refund Plan according to the following:

The Employer and Union recognize and encourage all employees to further their own personal development by enrolling in outside courses. All Employees are eligible if they enroll in an accredited correspondence, extension, or evening school course that is directly related to his/her job or would prepare him/her for a reasonably predictable future assignment.

Employees must obtain prior approval of both his/her Production Superintendent and the Human Resources Manager, such approval not to be unreasonably withheld.

Upon successful completion of the course, the employee shall qualify for reimbursement of his/her tuition, registration fees, text books required for regular use of the course, laboratory fees and final examination fees. As long as the employee remains employed with the Employer, he/she will receive a 50% reimbursement one year after completing the course and the remaining 50% reimbursement two years after completing the course.

Employees who are required to take courses in order to maintain their employment status or are required by law to complete courses to maintain certification shall be compensated immediately for the cost of such courses and shall receive time off with pay without loss of rights, benefits, or privileges. The Employer shall bear the cost of the Employee’s reasonable expenses.

25.6 Employee Meat Purchase Program

The Employer agrees to continue its present practice under the Employee Meat Purchase Program and that it shall be available to all Employees.

25.7 Christmas Bonus

The Employer agrees to provide a Christmas Bonus of no less than one hundred dollars ($100.00) to all Employees on the first pay period in December.

25.8 Stock Options Program

The employer agrees to continue its current stock purchase plan and agrees that all employees are eligible to participate in the program.

25.9 Housing

The Employer agrees to maintain its current short-term housing program. All housing provided to Employees shall be clean and properly maintained. The first month of residency shall be provided free of charge. The second and subsequent months shall increase in cost in accordance with the Employer’s current policy. Employee requests for extended stays shall not be unreasonably denied, but in no case shall an Employee receive less than fourteen (14) days notice of eviction.

17.1 Alberta Health Care

When a Full-time Employee has been employed for one (1) year, the Employer will pay the full premium cost for Alberta Health Care and the premiums.

17.2 Group Benefit Plan

The Employer will pay the full cost of a group benefit plan providing Extended Health Care Benefits, Long-term Disability coverage, Dental and Vision Care for Full-time Employees after one (1) year of continuous employment. Short-term disability benefits are provided for Full-time Employees following successful completion of the probationary period. A summary of the Plan is provided upon enrolment.

17.3 The Employer shall not be responsible for any benefit claims that the insurance carrier has determined to be non-qualifying claims and shall not be subject to the grievance and arbitration procedures of this Agreement.

17.4 Benefit Contribution Cap

Notwithstanding the previous provisions of this Article concerning the Employer's obligation to pay the total cost of providing the benefits referred to in this Article, that total cost of benefits paid by the Employer shall not exceed the total cost paid by the Employer in 2004. Any increase in the total cost of providing these benefits shall be paid by the employees. Each employee's share of any such increase shall be met by a direct reduction in the salary scale at the time an increase is implemented.

17.5 Retirement Plan

To provide for Full-time Employees’ retirement, the Employer has established a Registered Retirement Savings Plan (RRSP). The Employer will match contributions of Full-time Employees as follows:

The Employer shall make contributions based on all hours paid by the Employer to the Full-time Employees to a maximum of forty (40) hours per week.

ARTICLE 16

BENEFITS

1. The Company agrees that during the life of this agreement it will continue to provide its health, dental, disability, life insurance benefits and Company pension plan. The benefit levels will be subject to the Grievance and Arbitration procedure. Information concerning these benefits is outlined in a separate benefits handbook which is incorporated herein by reference. All matters of administration shall not be subject to the Grievance or Arbitration provisions of this agreement. The Company will furnish a copy of the STD summary plan document to the Union.

A. The Company will pay Alberta Health Care and Blue Cross premiums for regular full-time employees on the first of the month following completion of six (6) months of employment.

C. Accident and sickness benefits are sixty percent (60%) up to a maximum of $400/week production, $500/week maintenance.

D. Dental Plan fee schedule to current Blue Cross Dental fee schedule and update fee schedule as new schedules are published.

E. Vision Care Plan $150.00 maximum payment per employee’s spouse and children every two years.

F. Dispensing fees for prescription drugs – a prescription is comprised of both the ingredient cost and the pharmacist’s dispensing fee (dispensing fees vary). The dispensing fee that Blue Cross will pay out is limited to $6.00 per prescription. Cargill Foods will sign a preferred provider agreement and inform the members of the unit accordingly.

G. STD – If the company makes the determination not to accommodate an employee who has a non work related injury or illness, the employee will receive his/her Short Term Disability Benefit.

ARTICLE 24

GENERAL

14. Weekly contributions by employees eligible for major health benefits – three dollars ($3.00).

ARTICLE 23

HEALTH AND WELFARE

23.01 a] During the term of this Agreement, the Company shall make available the following benefits to eligible Employees: Employees should make themselves aware of the terms and conditions of Companies benefit plans.

i] Alberta Hospitals & Medical Care Health Care Insurance Plan

Effective the first day of the month following completion of six (6) months continuous service.

ii] Extended Health Care

All Eligible Employees and their dependents.

Co-Insurance*: 100%

Deductible: $25 per calendar year per employee

(including dependents)

Effective the first (1st) day of the month following the completion of six (6) months continuous service.

iii] Dental Care

All eligible employees and their dependents.

Basic 100% No Maximum amount.

"Annual" type check ups and "Annual" type X- Rays restricted to once every twelve (12) calendar months.

Othodontics 50% Restricted to dependent children – life time maximum

Effective the first (1st) day of the month following six (6) months continuous service.

23.01a cont.

iv] Life Insurance

A flat maximum benefit of twenty-five thousand dollars and no cents ($25,000.00).

Effective the first (1st) day of the month following six (6) months continuous service.

v] Accidental Death and Dismemberment

In the event of death a flat benefit of twenty-five thousand dollars and no cents ($25,000.00).

In the event of dismemberment the twenty-five thousand dollar and no cents ($25,000.00) benefit shall be pro-rated in accordance with the carrier's schedule.

Effective the first (1st) day of the month following six (6) months continuous service.

vi] Weekly Indemnity

- 61% of regular straight time weekly earnings, rounded to the next multiple of $1.00 if not already such multiple, to a maximum of $730.

- Coverage Effective: First day of accident

- First day of hospitalized sickness or fourth day of illness

- Maximum benefit period: 17 weeks.

- No benefits payable if entitled to Worker's Compensation.

- No benefits are payable during pregnancy leave and for ten (10) weeks either side.

- Benefits non taxable.

Effective the first (1st) day of the month following six (6) months continuous service.

vii] Vision Care

All Hourly employees and their eligible dependents

Adult $150/24 months

Child $150/12 months

23.01 b] Without altering or otherwise mitigating the conditions, terms and/or provisions of the policy of the Company's contract carrier for the weekly Indemnity Benefit provided under Section 23.01, Sub-Section a], Item vi] above the Company agrees to recognize the full attendance of its Employees through the implementation and administration of a Policy and Procedure on "attendance credits".

23.02 Notwithstanding Section 23.01 of this Article, the Company shall not be required to provide for the continuance of either the benefits nor the payment of any of the respective benefit premium costs of the benefits listed in Section 23.01 after:

i] Termination of employment as set out in Article 11, Section 11.04;

ii] Six (6) months following the permanent closure of the Plant or section thereof.

23.03 It is understood and agreed that all of the above benefits shall be subject to the individual policy conditions and that further details shall be set out in an Employee Benefit booklet. The Company shall provide the Union with a copy of such booklet.

23.04 a] The Company may change Insurance carriers from time to time, but any such change will not result in a decrease of the benefits referred to in this Article.

b] The Union recognizes that the Company is not the Insurer and all benefits are payable by the Insurer and not the Company.

Pension

The Employer agrees to participate in and contribute to the Canadian Commercial Workers' Industry Pension Plan.

Contributions, along with a list of employees for whom they have been made, the amount of weekly contribution for each employee, and the number of hours worked or paid, shall be forwarded by the Employer within the twenty-one (21) days after the close of the Employer's four (4) or five (5) week accounting period.

The Employer agrees to pay interest at the rate established by the Trustees on all contributions not remitted as stipulated above.

1. Email of Doug Schwartz

2. Board Directive

3. Welland County General Hospital (16 LAC 1 at 6)

4. First Cargill (1990 - 1994) agreement

5. D.I.B. report of Mr. Dubensky on the Gainers Inc. strike

6. Alberta Finance, Budget 2005

7. Alberta Economic Development webpage

8. 2001 Municipal Census for the Town of Brooks

9. Alberta Human Resources and Employment, 2004 Annual Alberta Regional Labour Market Review

10. Statistics Canada, The Consumer Price Index

11. Alberta Federation of Labour, Running to Stand Still, 2003

12. Tyson website,

13. Tyson Foods 10-K filing with the Securities and Exchange Commission, October 2004, pages 1 - 10

14. Alberta Economic Development, Monthly Economic Review, July 2005

15. "Place-to-Place Price Comparison Survey for Selected Alberta Communities"

16. Cargill web page

17. Terrible Tyson web page

18. Lakeside Wage Grids

19. Cargill Benefits Booklet

20. Employer’s recruitment literature

21. Para. 8.2 of Contract Clauses, 3^rd ed., Lancaster House.

22. IBP, inc. (Joslin, Illinios) CBA – March 5, 2001

23. Nebraska Right to Work

24. Iowa Right to Work

25. Section 425.1 of the Criminal Code

26. Part 24, Occupational Health and Safety Code

28. Sections 114(1) & 116 Alberta Labour Relations Code

29. Notice of Discipline

30. Section 31, Occupational Health and Safety Act,

31. Part 13, Joint Work Site Health and Safety Committee

32. Sections 35(1) and 36, Occupational Health and Safety Act

33. Workplace Health & Safety, Ergonomics, August, 2000

34. Parry Sound (District) Social Services Administration Board v. Ontario Public Service Employees Union, Local 324 (O.P.S.E.U.) [2003[ 2 S.C.R. 157

35. Wallace v. United Grain Growers

36. Proposals between parties

37. Section 17(1), Employment Standards Code

38. 2005 Recruitment Information booklet

39. "Reconcilable Differences", Paul Weiler, pp. 142 to 150