Collective Bargaining Agreement

Exhibit 10.21


COLLECTIVE AGREEMENT
between
PRUDENTIAL STEEL LTD. and


or their successors and/or their
assigns, hereinafter called the
"Company", OF THE FIRST PART


and


UNITED STEELWORKERS OF AMERICA
LOCAL 7226
hereinafter called the "Union",
OF THE SECOND PART


EFFECTIVE:


From January 1, 1998


To December 31, 2000


T A B L E O F C O N T E N T S


Article Page
1 Purpose of Agreement 1
2 Union Recognition 1
2.04 Contracting out 1
3 No Discrimination 2
4 Management 2
5 Union Security 3
6 Grievances 3
7 Arbitration 5
8 Discharge and Disciplinary Procedure 6
9 Seniority 7
9.02 Probationary Period 7
9.03 Seniority Retention and Accumulation 8
9.04 Loss of Seniority 8
9.05 Seniority List 9
9.06 Transfer to Jobs Outside of Bargaining Unit 9
9.07 Job Postings 10
9.09 Recall Procedure 12
9.10 Temporary Transfer 12
9.11 Lines of Progression 13
10 Lay-off 13
10.01 Lay-off Status Defined 13
10.02 Lay-off Notice 14
11 Leave of Absence 15
11.04 Leave to Attend Union Business 15
11.05 Leave for Union Employment 16
11.06 Failure to Return from Leave 16
12 Safety and Health 17
13 Handicapped Employees 18
14 Union Representatives 18
15 Established Practices 18
16 Bulletin Boards 18
17 Committeemen and Stewards 18
18 Hours of Work 19
18.01 Definition of Day and Work Day 19
18.02 Purpose of Defining Work Day and Work Week 19
18.03 Definition of Work Week 20
18.04 Shift and Work Schedules 20
18.05 Definition of Shifts 20
18.06 Shift Premiums 20
18.07 Lunch Periods 21
19 Overtime 21
19.02 Hours Worked in Excess 21
19.03 Hours Worked on Saturday 21
19.04 Hours Worked on Sunday 21
19.05 Exceptions to Daily Overtime 21
19.06 Lunch Periods 22
19.07 Overtime Lunches 22
19.08 Notice of Overtime 23
20 Statutory Holidays 23
20.02 Holiday Pay Allowance 24
20.03 Pay for Work on Holidays 24
21 Wages 24
21.03 Standard Hourly Wage Scale 25
21.09 Out of Line Differentials 27
21.17 Temporary Transfer 28
21.18 Learner Rates 28
21.28 Trade or Craft and Assigned Maintenance Convention 30
21.29 Incentives 31
21.30 General 31
21.32 Leave of Absence for Union C.W.S. Committee 31
21.33 Pay Days 31
21.34 Reporting Pay 32
21.35 Call Out Pay 32
21.36 Pay for Jury Service 32
21.37 Pay on Day of Injury 32
21.38 Bereavement Pay 33
21.39 Elimination of Bargaining Unit Jobs 33
22 Vacations 34
22.01 Vacation Year 34
22.02 Length of Vacation 34
22.03 Vacation Pay 35
22.07 Vacation Schedules 37
22.08 Christmas Shutdown 38
23 Insurance Benefit Program 38
23.01 Benefits 38
23.02 Pension Plan 39
24 Appendices 39
25 Copies of Agreement 40
25.02 Letters of Understanding and Agreement 40
26 Duration of Agreement 40


Appendices Page


Appendix (A) Cooperative Wage Study 42 Appendix (B) Learner Period Classification Analysis 42 Appendix (C) Schedule of Classifications 43 Appendix (D) Hours of Work Schedule 46 Appendix (E) Insurance Benefit Program 51 Appendix (F) Tradesmen's Tools 62 Appendix (G) Protective Clothing 62 Appendix (H) Lockers 63 Appendix (I) Pension Plan 64 Appendix (J) Lines of Progression 67 Appendix (K) Emergency Procedures 71 Appendix (L) Supplementary Unemployment Benefit 77


Letters of Understanding and Agreement


Initiation Fee 94
Pay for Union Business 95
Education Fund 96
Day Shift for Union President 97
Humanities Fund 98
Steelworkers' Savings Plan 99
Severance Adjustment Allowance 100
Group Leader Positions 102
Crew Movement - Oil Country 104
Safety Equipment Trust Fund 106
Safety Monitoring 108
Apprentice Training Agreement 109
Employee Empowerment 122
Signing Bonus 125
Profit Sharing 126
Retiree Bonus Plan 127


Alphabetical Reference Guide Back pages


ARTICLE 1 - PURPOSE OF AGREEMENT


1.01 Whereas the parties agree that it is mutually beneficial and desirable to arrange and maintain fair and equitable earnings, labour standards, wage rates and working conditions to obtain efficient operations, to protect the safety and health of employees and to provide machinery for the adjustment of disputes which may arise between the parties hereto. THEREFORE, the Company and the Union agree as follows:


ARTICLE 2 - UNION RECOGNITION


2.01 The Company recognizes the Union as a sole and exclusive bargaining agent for: all employees of the Company at its Calgary operations excepting office, clerical and technical staff, plant security officers, office janitors, foremen and supervisors with authority to hire and/or fire.


2.02 The terms and conditions set forth in this Agreement shall have full force and effect for all employees in the Bargaining Unit, as described in Article 2.01.


2.03 (a) Persons whose regular jobs are not in the Bargaining Unit shall not work on any jobs which are included in the Bargaining Unit except for the purposes of instructions, experimenting, in emergencies when Bargaining Unit employees are not available. (b) Emergencies when Bargaining Unit employees are not available, shall be meant to include manpower shortages due to lateness and unauthorized absenteeism. The Company will make every effort to place a suitable Bargaining Unit employee in that position as soon as possible.


Contracting Out


2.04 (a) Whenever practicable, the Company will not contract out work normally performed by members of the Bargaining Unit for which qualified employees are available. (b) In the application of Article 2.04 (a), the Company and the Union recognize the need to work toward the efficient utilization of Bargaining Unit employees so as to minimize the requirement to contract out work and as such the following has been agreed to: A Contracting Out Committee will be established, consisting of up to three (3) representatives of the Company and three (3) representatives appointed by the Union. This Committee shall meet on the 2nd Tuesday of January, April, June and September, or as may be mutually agreed. All information will be disclosed by the Company to enable this Committee to make the necessary recommendations as to which work will be contracted out and which work will be performed by Bargaining Unit employees. Any and all information supplied shall be kept in the strictest confidence. Where agreement cannot be reached by this Committee the Union may file a grievance of a general nature at Step 3 of the Grievance Procedure. (c) When the Company feels it is necessary because of equipment, knowledge, skill or time considerations to have other companies perform such work, it shall be in accordance with, and subject to, conditions set out in Article 2.04 (a) and (b).


ARTICLE 3 - NO DISCRIMINATION OR HARASSMENT


3.01 The Company and the Union agree that there will be no discrimination against any employee because of race, creed, colour, sex, national origin, union membership or union activity, or any other grounds covered by applicable legislation.


3.02 The Company and the Union agree there will be no harassment of an employee for any reason.


ARTICLE 4 - MANAGEMENT


4.01 The Union recognizes that it is the function of Management to manage the affairs of the business, and to direct the working forces of the Company subject to the terms of this Agreement.


4.02 Such Management function shall be: (a) To determine the products and schedules of production, the locations of production, and the methods and sequence of manufacturing processes. (b) To maintain discipline of employees including the right to make reasonable rules and regulations, provided, however, that any dispute as to the reasonableness of such rules and regulations or any dispute involving claims of discrimination against any employee in the application of such rules and regulations shall be subject to the grievance procedure of this Agreement. (c) To discharge, suspend or discipline employees for just and reasonable cause, and also hire, transfer, promote, demote and to assign employees to shifts with due regard to seniority in Article 9 of this contract.


4.03 The Company shall not direct the working forces in a discriminatory manner.


ARTICLE 5 - UNION SECURITY


5.01 Effective upon date of hiring, all employees within the Collective Bargaining Unit covered by the Agreement shall become members and maintain membership in the Union, as a condition of employment.


5.02 The Company shall deduct from the wages of each employee in the Bargaining Unit, union dues, initiation fees and assessments in the amount certified by the Union to the Company to be currently in effect according to the Union constitution. The total amount so deducted with an itemized statement of same, in duplicate, shall be forwarded to the Union prior to the end of the month in which said deductions are made in the manner provided for in Section 5.04 hereof.


5.03 Union members are to be supplied with union deduction totals for income tax purposes. The Company agrees to show on employees T4 slips the total union deductions for the previous taxation year.


5.04 Cheques shall be made payable to the United Steelworkers of America. Until further notice from the Union, all cheques shall be forwarded to the United Steelworkers of America at the following address:


INTERNATIONAL TREASURER UNITED STEELWORKERS OF AMERICA P.O. BOX 1400, STATION "A" VANCOUVER, BRITISH COLUMBIA V6C 2P7


and made payable as aforesaid.


5.05 The Company agrees to have all present and future employees covered by this Agreement, as a condition of continued employment, sign an agreement authorizing the Company to implement the provisions of this Article, and the Union agrees to indemnify the Company, and hold it harmless against any claim which may arise in complying with the provisions of this Article.


ARTICLE 6 - GRIEVANCES


6.01 The purpose of this Article is to establish procedures for discussion, processing and settlement of grievances, as defined in Section 6.02 of this Article.


6.02 "Grievance" as used in this Agreement is a complaint or request involving any matter relating to wages, hours or working conditions, including any question of interpretation or application of, or compliance with, the provisions of this Agreement, and shall only relate to or concern any grievance which has arisen or arises subsequent to the date of this Agreement.


6.03 Union Officers, Stewards and Committeemen, with the approval of their immediate supervisor, shall be permitted to leave their jobs to investigate and adjust grievances and to attend to their duties under this Agreement.


6.04 Any grievance must be presented within ten (10) working days of its occurrence or otherwise it shall not be considered. In the case of a grievance concerning wages, the ten (10) working day period shall date from the date on which the employee receives his pay cheque.


6.05 The grievance committeeman with or without the aggrieved employee may Step 1 present the grievance to the employee's immediate salaried supervisor. The supervisor shall make his reply verbally or in writing within two (2) days of receipt of the grievance. 6.05 Should the grievance committeeman or the employee be dissatisfied with the Step 2 Company disposition of such complaint or request, he may refer such matter on a written form to management within three (3) further working days. Management shall answer the grievance in writing within three (3) working days or a time mutually agreed upon. 6.05 If no settlement is reached in Step Two (2), the grievance committee and Step 3 representatives of management will meet within seven (7) working days to discuss the complaint. The Union's representative may be in attendance at this meeting. If the grievance is not then settled, then at the request of either party to this Agreement the grievance may be referred to arbitration. If notice of arbitration is not given within a further twenty (20) calendar days, unless further time is mutually agreed upon, the grievance will be deemed to have been settled.


6.06 The Union and the Company shall have the right to initiate a group grievance or a grievance of a general nature, at Step Three (3) of the grievance procedure.


6.07 If the Union does not advance a grievance from Step One (1) to Step Two (2), or from Step Two (2) to Step Three (3) with-in the agreed time limit, the grievance shall be considered withdrawn. Failure of the Company to reply to the grievance at any step shall automatically advance the grievance to the next step.


ARTICLE 7 - ARBITRATION


7.01 Whenever pursuant to the provisions of this Agreement a reference to arbitration is involved, the Company or the Union shall, within twenty (20) days following receipt of a decision in step (3) notify the other party, in writing, of intent to arbitrate. This notice shall: (a) state the matter at issue and in what respect the agreement has been violated or misinterpreted by reference to the specific clause or clauses relied upon. Notwithstanding the above, the board may take into consideration all matters, clauses and evidence which in its opinion has a bearing on the grievance or question referred to arbitration, and (b) state the nature of the relief or remedy sought.


7.02 (a) Single Arbitrator The Company and the Union agree that the following persons constitute the panel of arbitrators from which will be selected a single arbitrator for each grievance requiring arbitration under this Agreement: 1. Gerald Hawco 2. Tom Joliffe 3. Allan Beatty 4. Alex Trawick (b) Selection of Arbitrator The method of selecting a single arbitrator shall be by rotation, starting with the order of the names listed above. If the arbitrator so selected is unable to act, then the arbitrator next on the list of names shall be selected. Unless otherwise agreed to, a single arbitrator will be appointed for each grievance or group grievance. No member of the panel of arbitrators may be removed from the panel unless it is mutually agreed upon by the Company and the Union. If a member of the panel is unable to continue to act as an arbitrator, a new member may be appointed; the appointment is to be mutually agreed upon by the Company and the Union.


7.03 At any stage of the grievance procedure including arbitration the confer ring parties may have the assistance of the employee or employees concerned and any necessary witnesses, and all reasonable arrangement will be made to permit the conferring parties to have access to the plant and to view disputed operations.


7.04 The arbitrator shall have power to deal with matters involving the interpretation, application or alleged violation of this Agreement and shall not rule on any other matter nor shall they have the right to alter, amend, set aside, add to or delete from any one of the provisions herein contained, nor to render any decision which is inconsistent with the provisions of this Agreement or the Statutes of Alberta.


7.05 All time limits specified in Articles 6 and 7 shall be deemed to be exclusive of Saturdays, Sundays and Company recognized holidays and may be extended by mutual consent of the parties or by the Arbitrator.


7.06 Each of the parties concerned shall pay its own costs and the fees and expenses of witnesses called by it and its representatives. The fees and expenses of the Arbitrator, stenographic assistance and rents shall be shared equally between the parties.


7.07 The parties agree to abide by the provisions of Articles 6 and 7 as the only means of resolving any difference which may arise during the term of this Agreement, and all employees shall continue to work as usual and the Company shall continue its normal operating practices.


ARTICLE 8 - DISCHARGE AND DISCIPLINARY PROCEDURE


8.01 Management shall not take disciplinary action without first warning the employee, unless the circumstances justify immediate suspension or discharge. In the event of a claim that an employee has been discharged or suspended unjustly or unreasonably, the grievance shall be filed at Step Three (3) of the grievance procedure within five (5) working days.


8.02 (a) Warnings shall be given in writing to the employee and a copy shall be sent by mail to the Union. The Company and the Union agree that disciplinary penalties shall not be imposed unreasonably or unjustly. In cases where justified penalties and warnings (excluding dismissals) have been given to an employee, it is understood and agreed that if an employee is not given a justified penalty and/or warning within a continuous period of nine (9) months, his employment record shall be cleared of any deficiencies, and shall not be used against the employee thereafter. (b) An employee who the Company intends to suspend shall be retained at or returned to active work until any grievance contesting such suspension is finally resolved through the grievance procedure.


8.03 If it is determined or agreed at any steps in the grievance procedure or decided by an arbitrator that an employee has been disciplined or discharged unjustly, the Management shall put him back on his job with no loss of seniority, and they shall pay the employee the amount he would have earned had he been working or by any other arrangement as to compensation, which is just and equitable in the opinion of the parties or in the opinion of the arbitrator if the matter is referred to such an arbitrator.


8.04 Any employee who is discharged, laid off or leaves of his own accord shall be paid all wages due him on the pay day when such wages would normally be due and payable, unless otherwise mutually agreed between the Company and the Union.


8.05 No employee shall be subject to any disciplinary action by a foreman or supervisor without having a Union representative present, where such action is to be part of an employee's record.


8.06 The Union shall be immediately notified, in writing, as to reasons for the dismissal of any member of the Bargaining Unit.


ARTICLE 9 - SENIORITY


9.01 (a) The parties recognize that job opportunity and seniority shall increase in proportion to length of service. It is, therefore, agreed that in all cases of vacancy, promotion, transfer, lay-off, termination and rehiring after lay-off or termination, senior employees shall be entitled to preference. (b) In recognition, however, of the responsibility of Management for the efficient operation of the plant, it is understood and agreed that in all such cases, Management shall have the right to pass over any employee, if it is able to establish with the employee and the Union, that he does not have the ability or the physical fitness to perform the work with due regard to Article 6 of this Agreement.


9.02 PROBATIONARY PERIOD - A new employee shall be on probation for a period of ninety (90) calendar days. Upon completion of the probationary period, an employee shall acquire seniority status, and shall be credited with service from his original hiring date. A probationary employee laid off for lack of work shall, if rehired within a twelve (12) month period, be credited with time worked prior to lay-off as a probationary employee.


Article 6 shall not apply to probationary employees, except in cases involving discrimination.


9.03 SENIORITY RETENTION AND ACCUMULATION - Seniority shall be retained and shall accumulate during: (a) absence from work due to an injury or sickness covered by the Workers' Compensation Act until certified by the Compensation Board as being able to return to work in the Bargaining Unit, subject to 9.04(f) below; (b) authorized leave of absence; (c) lay-off subject to Section 9.04(d); (d) absence from work due to medically certified illness or injury, subject to 9.04(f) below; (e) while serving in the Armed Forces during period of national emergency; (f) while serving in the Armed Force reserve for periods of up to one year.


9.04 LOSS OF SENIORITY - An employee shall lose his seniority standing and his name shall be removed from all seniority lists for any one of the following reasons: (a) If an employee quits; (b) If the employee is discharged for proper cause, and is not reinstated in accordance with the provisions of this Agreement; (c) If the employee is laid off and fails to notify the Company within five (5) working days of his intention as to whether he intends to return to work or not, after having been notified to do so by the Company by registered mail to his last known address, and fails to return to work in ten (10) working days after receipt of the registered notice, as stated above; copy of such notice to be sent to the Union. Exceptions to this rule will be extenuating circumstances. It is the responsibility of laid off employees to keep the Company informed of their addresses and telephone numbers. (d) on the date on which the above registered letter has been returned to the Company from the post office. (e) If he has been on lay-off because of lack of work for a period equal to his time of seniority or twenty-four (24) months, whichever is greater; (f) employees who have ceased to receive Disability Benefits from either the Workers Compensation Board or the Short or Long Term Disability Benefits, under this Collective Agreement, and are unable to return to active employment in the Company for medical reasons, or, who have completed job retraining from the Worker's Compensation Board shall not accumulate further seniority from the date of such discontinuation of benefits. Employees who are not accumulating seniority under this article shall not be eligible for further benefits under this Collective Agreement (including pension and insurance benefit program) until such time as they are medically fit to return to active employment in the Company.


9.05 SENIORITY LIST - The Company shall prepare a plant-wide seniority list and present same to the Union within thirty ( ...