Collective Bargaining Agreement

Exhibit 10.1 COLLECTIVE AGREEMENT between PRUDENTIAL STEEL LTD. and or their successors and/or their
assigns, hereinafter called the
" Company" , OF THE FIRST PARTand UNITED STEELWORKERS OF AMERICA
LOCAL 7226 hereinafter called the " Union" ,
OF THE SECOND PARTEFFECTIVE:From January 1, 2004To December 31, 2006


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 4 7 Arbitration 5 8 Discharge and Disciplinary Procedure 6 9 Seniority 7 9.02 Probationary Period 8 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 10 9.07 Job Postings 10 9.09 Recall Procedure 12 9.10 Temporary Transfer 12 9.11 Lines of Progression 13 10 Lay-off 14 10.01 Lay-off Status Defined 14 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 19 18.04 Shift and Work Schedules 20 18.05 Definition of Shifts 20 18.06 Shift Premiums 20


Article Page 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 22 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 25 21.03 Standard Hourly Wage Scale 26 21.09 Out of Line Differentials 28 21.17 Temporary Transfer 29 21.18 Trade or Craft and Assigned Maintenance Convention 29 21.19 Incentives 29 21.20 General 29 21.22 Leave of Absence for Union C.W.S. Committee 30 21.23 Pay Days 30 21.24 Reporting Pay 30 21.25 Call Out Pay 31 21.26 Pay for Jury Service 31 21.27 Pay on Day of Injury 31 21.28 Bereavement Pay 31 21.29 Elimination of Bargaining Unit Jobs 32 22 Vacations 32 22.01 Vacation Year 32 22.02 Length of Vacation 33 22.03 Vacation Pay 33 22.07 Vacation Schedules 36 22.08 Christmas Shutdown 37 23 Insurance Benefit Program 37 23.01 Benefits 37 23.02 Pension Plan 37 24 Appendices 37 25 Copies of Agreement 38 25.02 Letters of Understanding and Agreement 38 26 Duration of Agreement 38


Appendices Page Appendix (A) Cooperative Wage Study 40 Appendix (B) Learner Period Classification Analysis 40 Appendix (C) Schedule of Classifications 41 Appendix (D) Hours of Work Schedule 44 Appendix (E) Insurance Benefit Program 49 Appendix (F) Tradesmen's Tools 61 Appendix (G) Protective Clothing 61 Appendix (H) Lockers 62 Appendix (I) Pension Plan 63 Appendix (J) Lines of Progression 67 Letters of Understanding Initiation Fee 71 Pay for Union Business 72 Education Fund 73 Day Shift for Union President 74 Humanities Fund 75 Steelworkers' Savings Plan 76 Severance Adjustment Allowance 77 Group Leader Positions 79 Crew Movement - Oil Country 81 Safety Equipment Trust Fund 84 Safety Monitoring 86 Apprentice Training Agreement 87 Employee Empowerment 106 Shift Leaders 109 Contracting Out Cleaning of Mill Pits 110 Post Retirement Benefit Fund 111 Premium Threading 112 Overtime after 8 Hours/Pay and 40 Hours/Week 114 Gainsharing 116


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

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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 recognize that all employees have the right to work in an environment free from discrimination and harassment. The parties wish to create a workplace in which employees do not engage in or become subject to discriminatory and harassing behaviour, as defined by law. Accordingly, the Company has established clear policies prohibiting discrimination and harassment within the workplace. In the furtherance of these policies, the Company and the Union agree that there will be no discrimination against any employee on the basis of any prohibited grounds, as set forth in the applicable Provincial Human Rights Legislation, or on the basis of Union membership or Union activity, and that harassment will not be tolerated within the workplace. The parties agree that they shall not exercise their rights under this Collective Bargaining Agreement in a discriminatory or harassing manner. 3.02 If any employee feels subject to discriminatory and harassing behaviour, they have the right to bring their complaint to the Local Union Civil Rights Committee. The committee member(s) will then investigate the complaint. If the complainant can agree to a satisfactory resolution, the matter will be considered resolved. If the complaint cannot be resolved, the investigating committee member(s) will bring the matter to the Grievance Committee at stage three of the grievance procedure. All information gathered by the Civil Rights Committee investigation will be made available to the Grievance Committee in order to proceed with the grievance. If a resolution cannot ultimately be finalized through this procedure, the complainant has the right to take the case to the Human Rights Commission. ARTICLE 4 - MANAGEMENT 4.01 The Union recognizes that it is the function of Management to manage the affairs

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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:

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INTERNATIONAL TREASURER
UNITED STEELWORKERS OF AMERICA
P.O. BOX 1400, STATION " A"
VANCOUVER, BRITISH COLUMBIA
V6C 2P7and 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 Step 1 The grievance committeeman with or without the aggrieved employee may 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 Step 2 Should the grievance committeeman or the employee be dissatisfied with the 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

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mutually agreed upon. 6.05 Step 3 If no settlement is reached in Step Two (2), the grievance committee and 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 ArbitratorThe 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

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(b) Selection of ArbitratorThe 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 conferring 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

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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 twelve (12) 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 9.02 (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

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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 six (6) calendar months. 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)

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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 (30) days of the signing of this Agreement. Said lists shall commence with the employee with most seniority, carry on downward to the employee with least seniority, and contain the following information: (a) employee' s starting date; (b) employee' s name and clock number.Additional revised lists will be furnished to the Union as requested from time to time, and within ten (10) days of said request. The Union agrees not to make such requests more frequently than once every two (2) months. Seniority lists shall include all Bargaining Unit employees on the payroll at the time such seniority list is prepared.The Company shall also prepare a maintenance department seniority list that shall

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include all tradesmen and apprentices, and the starting date on such seniority list shall be the date upon which the employee enters the maintenance department.Employees having the same starting date, on either the plant-wide seniority list or the maintenance department seniority list shall appear and receive preference in alphabetical order. 9.06 TRANSFER TO JOBS OUTSIDE OF BARGAINING UNIT - 9.06(a) Employees who are transferred through the Bargaining Unit to any other part of the Company' s service shall retain and shall accumulate seniority in the bargaining unit to a maximum of twelve ( 12 ) cumulative months. During these periods of time, that the employee is transferred outside of the bargaining unit, the Company may elect to return the employee to his former position in the bargaining unit, or the employee may elect to return to his former position held in the Bargaining Unit. 9.06(b) Article 9.06 (a) shall apply provided that: 1. They have completed their probationary period as regular employees in the Bargaining Unit, and 2. They exercise their seniority rights or signify their intentions to do so upon the termination of their jobs outside the Bargaining Unit. 3. They pay all dues accrued during the transfer period outside of the Bargaining Unit. 4. All back dues will be calculated and paid to the Union through payroll deduction by the Company. 9.07 JOB POSTING - When preferential jobs (jobs that are normally a one shift operation), or jobs above Job Class 4 are available, the following procedures will govern the assignment of employees to these jobs: (a) Job vacancy notices will be posted, within five (5) working days, on the bulletin board for three (3) full working days, but not longer than four (4) working days. The job requirements and qualifications shall be listed on the job vacancy notices.The name of the successful bidder will be posted after three (3) days of removal of notice from the bulletin board unless this time is extended by mutual agreement.

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(b) Applications will be made to the Management on a form supplied by the Company. (c) Any grievance concerning assignments made under job posting must be filed within five (5) working days after the assignments are posted. (d) Probationary employees shall be eligible to bid for posted job vacancies, but the Company may assign such employees to any vacancies, if the jobs cannot be filled by the bidding procedures. (e) A job vacancy need not be posted a second time within thirty (30) days, if there are enough suitable applicants from the first posting to fill the vacancy or vacancies. (f) An employee may apply for a lower paid job in any department, or for a job at equal pay in a different department after four (4) working months in his current job. (g) If an employee has been a successful bidder under the job posting provision, then he may be ruled ineligible during his next three (3) working months for a job less than two (2) job classes higher than his classification at the time. (h) In cases of job vacancies not being posted, information will be supplied to the Union upon request. Employees who are absent, while the job is up, can have one of the Union executive committee members sign his name and the member of the Union executive must place his initials against the name of the employee. The absent employee must request this for each job bid from one of the executive committee members. (i) In the event that an employee selected for the job proves to be unsuitable for the position, he shall revert to his former position and status in accordance to seniority. (j) In the event that a foreman wishes to discuss with an employee his suitability for a posted job, the employee may be accompanied by a Union committee member. (k) The Company shall provide the Union with a list of jobs that each employee has held, or is deemed to have held, under the job posting provision. This list shall be updated bi-yearly. (l) All requests by employees to be taken off a bid job must be in writing and shall include an explanation for such request. Such requests shall not be unreasonably denied.

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(m) After five (5) days of holding a job bid, the successful bidder will receive that rate of pay or his previous rate of pay, whichever is greater. (n) The successful bidder must be on the job within ten (10) days of being notified as the successful bidder. (o) For tradesmen or apprentices bidding on a job posting, other than Maintenance department job bids which shall be determined by Maintenance department seniority, their plant seniority shall be the seniority used to determine their eligibility on any such job vacancy. (p) Employees requesting a transfer, in the same job classification, between plants when one plant is on a two shift operation and the other plant is on a three shift operation, shall be granted such transfer request with due regard to seniority. An employee shall not make such request more often than once every three months. 9.08 If a temporary shortage of work occurs for a period of five (5) working days or less, employees affected shall have the option, upon the commencement of their next regularly scheduled shift, of accepting the lay-off or filling non-bid jobs in the labour pool, and retaining their rates of pay. (a) Filling non-bid jobs in the labour pool shall be subject to seniority regulations in the bumping procedure. 9.09 RECALL PROCEDURE - In the case of recall of employees on lay-off status, the following procedure shall apply: (a) Senior employees who decline recall to work which they are informed is temporary, and of limited dura ...