COLLECTIVE AGREEMENT SWISS CHALET NUMBER 1175

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1 ,., (iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii COLLECTIVE AGREEMENT BETWEEN ONTARIO LIMITED c.o.b. as SWISS CHALET NUMBER 1175 AND NORTHERN ONTARIO J.OINT COUNCIL -of the - Retail, Wholesale and Department Store Union, District Council -of the- United Food and Commercial Workers lnt rnational Union Received - union Received- employer D Received- other--- Off\CEOf ~O'I 2. 3 'Z.OOO ARGA\N\NG COLL~~~~~:Ai\O,.N~-- July 24, 2000 to July 23, 2002

2 INDEX ARTICLE PAGE 1. Intent and Purpose Scope and Recognition No Discrimination Management Rights Union Security No Cessation of Work Adjustment of Grievances Seniority leave of Absence Temporary Assignment Articles of Uniform Hours of Work and Overtime Reporting Pay Paid Holidays Bereavement Vacations Compensation for Accidents at Work Health and Welfare General provisions Gratuities Health and Safety Stations Wages Duration of Agreement Appendix "A" Schedule u A" letter of Understanding letter of Understanding letter of Understanding

3 COLLECTIVE AGREEMENT BETWEEN: ONTARIO LIMITED c.o.b. as SWISS CHALET NUMBER 1175 (hereinafter referred to as the "Company") AND: NORTHERN ONTARIO JOINT COUNCIL - of the - RETAIL, WHOLESALE AND DEPARTMENT STORE UNION, DISTRICT COUNCIL- of the - UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION (hereinafter referred to as the "Union") ARTICLE 1 - INTENT AND PURPOSE: 1.01 This Agreement is entered into by the parties hereto so as to provide for orderly labour relations between the Company, the Union and those teammates who fall within the bargaining unit as set out below and to eliminate interruption of work and interference with the efficient operation of the company's business Further, it is the desire of the parties to this agreement to co-operate in maintaining a harmonious relationship between the Union, the Company and its teammates, and to provide for an expeditious and amicable method of settling differences or grievances having to do with the application, interpretation or violation of this collective agreement In an effort to promote co-operation and harmony during the term of this agreement, the parties agree that they shall execute their rights and obligations as contained herein in a manner that is fair, reasonable and in good faith. ARTICLE 2 - SCOPE AND RECOGNITION: 2.01 The Company recognizes the Union as the sole and exclusive bargaining agent of all teammates of the Company carrying on a business as Swiss Chalet Restaurant in the city of Sudbury, save and except Assistant Dining Room Managers, and persons above the rank of Assistant Dining Room Manager "Teammate" as used in this Agreement shall mean those persons described in the bargaining unit set forth in Article 2.01 above In this Agreement, words using the feminine gender include the masculine and neuter; the singular includes the plural, and the plural singular where the text so indicates. ARTICLE 3 - NO DISCRIMINATION: 3.01 There shall be no discrimination, intimidation, harassment or coercion by the Company or the Union against any teammate because of race, colour, religious beliefs, sex, age, marital status, handicap, union related activities, or for any other prohibited ground of discrimination under the Human Rights Code which forms a part of this collective agreement.

4 ARTICLE 4 - MANAGEMENT RIGHTS: 4.01 The Union recognizes and acknowledges that the management of the store and direction of the working force are fixed exclusively in the Company and, without restricting the generality of the foregoing, the Union acknowledges that It Is the exclusive function of the Company to: (a) (c) (d) (e) maintain orde~ and efficiency; hire, promote, demote, classify, transfer, suspend and rehire teammates, and to discipline or discharge any teammate for just cause provided that a claim by a teammate who has acquired seniority that she has been discharged or disciplined without just cause may be the subject of a grievance and dealt with as hereinafter provided; make, enforce, and later, from time to time, reasonable rules and regulations to be observed by the teammates; determine the nature and kind of business conducted by the Company, the methods and techniques of work, the contents of jobs, the number of teammates to be employed, the extension of operations or any part thereof, and to determine and exercise all other functions which shall remain with the Company except as specifically limited by the express provisions of this Agreement; The Union recognizes that the Company is bound by rules and regulations set by Cara Operations limited or its successor with respect to hours of operation, dress codes, cleanliness and sanitation and such other matters pertaining to the operation of the Company's business which the Company is obligated to observe. ARTICLE 5 - UNION SECURITY: 5.01 The parties agree that all teammates covered hereunder shall, as a condition of their continued employment, become and remain members of the local union in good standing in accordance with the bylaws and constitutions of the Union Any new teammate hired after the signing of this collective agreement shall, prior to the completion of his/her probationary period, make application for membership in the local union and shall become and remain, a member of the Union in good standing as a condition of his/her continued employment with the Company The Company shall deduct the local union initiation fees, regular union dues and special assessments in the amount and manner specified by the union bylaws and constitutions from each pay cheque due to each teammate covered by this agreement and remit such monies so deducted to the Union presently located at 230 Regent Street South, Sudbury, Ontario, P3C 4C5, on or before the fifteenth (15th) of the month following the month in which such deductions have been made. The Company will at the same time submit a list of teammates from whose pay such deductions have been made It shall be the Company's responsibility to show on each teammate's annual T4 slip, the full amount of union dues paid by such teammate during the previous calendar year

5 5.05 The Union agrees to save the Company harmless from any and all claims which may be made by teammates against the Company for amounts deducted from wages in accordance with the terms of this agreement. ARTICLE 6 - NO CESSATION OF WORK: 6.01 The parties agree that there shall be no strike, work stoppage or slowdown by any teammate or by the Union and there shall be no lock-out. ARTICLE 7 - ADJUSTMENT OF GRIEVANCES: 7.01 (a) Should any difference arise between the Company and any of the teammates, or between the Company and the Union, as to the interpretation, application or alleged violation of any of the provisions of the agreement, an earnest effort shall be made to settle such difference without undue delay in the following manner. For the purposes of this agreement, a grievance is defined as a claim by the Company or by the Union or by a teammate that there has been a violation of this collective agreement. STAGE 1 The aggrieved Teammate and/or a Union Steward or Union Representative shall present her grievance orally to her Supervisor. If the grievance is in writing it should be signed by the teammate. The Supervisor shall give her decision within five (5) working days following the presentation of a grievance to her. If the Supervisor's decision is not satisfactory to the teammate concerned, then the grievance may be presented as follows: STAGE 2 Within five (5) working days after the decision is given by the Supervisor at Stage 1, the aggrieved teammate and/or a Union Steward or Union Representative shall, present the grievance which shall be reduced to writing on a form supplied by the Union to the Store Manager who shall consider it in the presence of the person or persons presenting same and the Supervisor, and will render his decision in writing within five (5) working days following the presentation of the grievance to him. If a settlement satisfactory to the teammate concerned is not reached then the grievance may be presented as follows: STAGE 3 Within five (5) working days after the decision is given by the Store Manager, the aggrieved teammate and/or a Union Steward or Union Representative will then meet with the Director of Industrial Relations of Cara Operations Limited or his delegate who shall consider it and will render his decision in writing within five (5) working days following the presentation of the grievance to him. If a settlement satisfactory to the teammate concerned is not reached, then the grievance may be presented as follows: 7.02 (a) Arbitration - If a grievance is not settled to the satisfaction of either party at Stage Two, then within fifteen (15) calendar days following the receipt of the written reply from Stage Two, either party may request that the grievance be submitted to an arbitrator. Such a request of an arbitrator shall be made by one party to the other in writing by - 3 -

6 registered mail of an arbitrator shall be accompanied by the nomination of an arbitrator. Within one ( 1) week after the receipt of such request, the other party shall name its nominee. If the parties fail to agree on the arbitrator, then either party may seek the appointment of an arbitrator as provided by the appropriate labour legislation in the province of Ontario. (c) Each of the parties hereto shall jointly and equally bear the expenses of the arbitrator so appointed. No matter shall be submitted to a board of arbitration which has not been properly carried thorough all previous steps of the grievance procedure The arbitrator shall not make any decision inconsistent with this agreement, nor alter, modify or amend any part of this agreeml:!nt. GENERAL 7.04 The time limits mentioned in this Article 7 may be extended by mutual agreement between the parties. If either party fails to answer any grievance within the time limits, the grieving party may move the grievance to the next stage and so on until final settlement is reached The Company agrees to pay a teammate for all time spent in grievance meetings with the Company during his regular working hours In the case of a wage grievance, the matter shall be taken up within five (5) working days after the teammate received his pay cheque for the period in which the grievance occurred Any difference arising directly between the Company and the Union as to the interpretation, application or alleged violation of any of the provisions of this agreement may be submitted by either party to the other at Stage Three of the grievance procedure, within fourteen ( 14) days from the date on which the matter at issue arose In the event that any teammate who has completed his probationary period is discharged from his employment after the date hereof and believes that his discharge is without just and sufficient cause or is in violation of any of the provisions of this agreement, such discharge may, if deemed necessary, be taken up at Stage Two of the grievance procedure The parties agree that in cases of suspensions or discharge being taken against a teammate, the shop steward, or if the shop steward is not presen,t, a bargaining unit teammate of their choice, shall be present during such action period (a) The Company acknowledges the right of the Union to appoint or elect a committee in the store which shall be composed of not more than three (3) shop stewards. The names of the stewards from time to time selected shall be given to the Company and the manager of the store in writing and the Company and the store manager shall not be required to recognize any such stewards until it has been so notified. The privileges of the stewards to leave their work without loss of pay to attend to Union business is granted on the following conditions: - 4-

7 (i) (ii) (iii) (iv) (v) (vi) Such business must be between the Union and the management. Teammates having grievances cannot discuss these with the stewards during working hours, except, in the case of a discharged or disciplined teammate. The time shall be devoted to the prompt handling of necessary Union business. The steward concerned shall obtain the permission of the Store Manager or in his absence, the Dining Room Manager or Kitchen Manager concerned before leaving his work, provided such persons are available. Such permission shall not be unreasonably withheld. The time away from productive work shall be reported in accordance with the time keeping methods of the department in which the steward is employed. The company reserves the right to limit such time if there is an abuse of the time so taken. It is agreed that the Union Negotiating Committee for this Collective Agreement shall be comprised of three (3) members, as appointed by the Union All written notices of discipline more than twenty four (24) months old shall not thereafter form a part of a teammate's record and shall not be admissible in evidence at arbitration provided that the teammate has not been disciplined during the twenty four (24) month period for a similar offence A full-time representative of the Union and/or a union steward shall be entitled to inspect time cards, and work schedules which relate to a grievance provided: (i) (ii) A member of management is present at the time; and Such inspections are not abused When the Company evokes discipline upon a teammate, such discipline shall be evoked in a private setting away from customers and staff. ARTICLE 8 - SENIORITY: 8.01 A teammate shall be on probation during his first three {3) calendar months of employment without seniority rights during which period he may be dismissed by the Company without recourse. Upon completion of his probationary period, his name shall be added to the seniority list and the seniority shall be computed from the first day he first commenced to work for the Company in the bargaining unit. APPLICATION OF SENIORITY 8.02 (a) Seniority is the principle of granting preference to teammates for promotions, demotions, layoffs, and recall after layoffs, weekly shift schedules and all other matters in accordance with length of continuous service, but only when a teammate has the ability and qualifications necessary to fill the normal requirements of the job

8 Full time seniority rights shall take preference over the part-time seniority rights in all matters pertaining to the application and/or interpretation of the provisions contained in the collective agreement Seniority means the relative ranking of the teammates as determined by their respective length of continuous service in the employ of the Company on an in store basis The Company shall post a seniority list in a prominent place in the store on or about January 1 and July 1 of each calendar year and a copy of such list shall be forwarded to the union at such time NOTICE OF LAYOFF In the case of the layoff of a teammate having three (3) months seniority or more, the Company agrees to give notice pursuant to the Employments Standards Act SENIORITY ON RECALL In the event that any teammate is laid off for lack of work, such teammate shall retain his seniority for up to and including nine (9) months and be entitled to recall before other permanent help is hired 4 provided that such teammate makes himself available within five (5) working days after the mailing of the notice to return to work by the Company, which notice shall be sent by registered mail to the teammate's address last recorded with the Company, unless there is an acceptable reason BREAK IN SERVICE Seniority shall terminate and a teammate shall cease to be a teammate of the Company when: (a) (c) (d) (e) quits; is discharged and such discharge is sustained by the arbitrator if the case. is taken to arbitration; fails to return to work in accordance with the provisions of the previous paragraph after layoff; fails to return to work after the completion of a leave of absence, unless a reason satisfactory to the Company is given by the teammate for inability to return to work on the date mentioned in the signed leave of absence. fails to report for work in excess of three (3) consecutive days unless a reason acceptable to the Company is provided JOB POSTING Where a permanent vacancy becomes available in the bargaining unit, such vacancy shall be posted for a period of five (5) calendar day during which time any teammate in the bargaining unit may apply in writing. If there are no successful applicants, the Company may fill such vacancies from outside the bargaining unit. In filling such permanent vacancies, the Company shall recognize the principle of seniority provided the senior teammate has the ability and qualifications to perform the normal requirements of the job. The notice of vacancy shall be set out the following; - 6 -

9 (a) (c) job title; rate of pay of the job; date of posting of the job 8.09 In the event that a teammate has been selected to fill a permanent position, then she shall be precluded from applying to fill a vacancy in another classification for a period of six (6) months In the event that there is no successful applicant to such posted vacancy or newly created position, the Company will be free to hire teammates from outside the bargaining unit It shall be the duty of each teammate to notify the Company promptly of any change in address and telephone number Teammates who are promoted to a position outside of the bargaining unit and who are subsequently returned to the bargaining unit, shall be; (a) credited with their seniority while employed in the bargaining unit; credited with their seniority for time spent employed by the Company outside of the bargaining unit. ARTICLE 9 - LEAVE OF ABSENCE: 9.01 The Company, upon request of the Union, will grant a reasonable leave of absence to any one (1) teammate who may be selected by the Union to attend union business, providing such request is made at least two (2) weeks in advance and further provided qualified help is available to replace the person who is absent. Such leave shall be in writing between the parties The Company will grant leave of absence to one teammate who may be selected by the Union to fill an office or act in any capacity for the union provided that such leave is not in excess of twelve ( 12) months. Such leave shall be in writing between the parties The Company may grant leave of absence without pay if a teammate requests it in writing from the store manager and if the leave is for good reason and does not unreasonably interfere with the efficient operation of the store. Requests for leave of absence must be made in writing to the store manager, at least two (2) weeks prior to the desired date of commencement of such leave and must indicate the length of leave requested and the reason for requesting such leave. The store manager's reply will be given to the teammate in writing within seven (7) days after receipt of the request for a leave of absence PREGNANCY LEAVE I PARENTAL LEAVE A teammate shall be entitled to take a pregnancy leave or parental leave in accordance with the Employment Standards act as it may be from time to time. ARTICLE 10 - TEMPORARY ASSIGNMENT: A teammate who, for the convenience of the Company is temporarily transferred for a period of three (3) working hours or more to another job for which the rate of pay is different from that in effect for such teammate's regular job shall be paid, while so employed, as follows: - 7 -

10 (a) (c) If the rate of pay for the job to which she is transferred is less than the teammate's regular pay, she shall receive her own higher rate of pay. If the rate of pay for the job to which she is transferred is higher than the teammate's regular rate of pay, she shall receive the higher rate of pay for the job to which she is temporarily transferred. Any teammate who is temporarily transferred to a higher rated job classification in accordance with the provisions of this Article, will receive payment in the higher rated classification at the Start Rate of the classification or his regular rate, whichever is greater. The term "temporarily transferred" as set forth in this Article, shall mean on an intermittent basis only. When said "temporarily transfers" are made on a regular basis, the teammate working temporarily in the job classification shall be paid in accordance with their accumulated months of service as set forth in Article 23 of the Collective Agreement between the parties. ARTICLE 11 - ARTICLES OF UNIFORM: UNIFORMS (a) Dress or other garments to be worn by waitresses shall be supplied by the Company from time to time. Full-time teammates will be supplied with three (3) shirts, two (2) aprons, two (2) pairs of pants or two (2) skirts and part-time teammates will be provided with two (2) shirts, one ( 1) apron, one ( 1) pair of pants or one ( 1) skirt. Clean uniforms are to be supplied in good repair. Clean uniforms are to be supplied to kitchen teammates daily, if required. Should the uniform become damaged or become worn as a result of the teammate performing their duties, it will be replaced in a timely fashion at no expense to the teammate. Name tags are part of uniform and must be worn. If a teammate wishes to purchase additional uniform components, the Company will provide these components at cost to the teammate. (c) Teammates, upon being hired, shall give the Company a twenty-five dollar ($25.00) deposit in relation to their uniforms and such deposit will be returned to teammates upon leaving the employ of the Company. The deposit referred to above shall be deduced from the teammates's pay on the basis of five dollars ($5.00) per pay period. It is agreed that if a teammate fails to return a second uniform, a sum of twenty five dollars ($25.00) in addition to the deposit will be deduced from her final pay. SERVER AND OTHER SHOE ALLOWANCE The Company will stipulate the style of shoe to be worn. The shoe must have a slip resistant sole as indicated by label and/or manufacturer specifications and must have a steel toe where required. The above shoes must be worn by teammates at all times during their working hours. All full-time teammates who have completed their probationary period will be paid a maximum of forty-four ( $44.00) dollars shoe allowance annually (contract year) if required due to wear and tear or as - 8 -

11 a result of the performance of their duties. Part-time teammates will be paid a maximum of forty-four ( $44.00) dollars shoe allowance every two (2) years (contract year) after completion of one years service if required due to wear and tear or as a result of the performance of their duties. (d) CLEANING ALLOWANCE Effective date of ratification (September 5th, 2000) the Company will contribute four cents (.04 ) per hour worked per waitress/waiter, takeout person, cashier, and bartender as an allowance towards the cleaning of uniforms. This money shall be paid bi-weekly with teammates regular pay The Company shall supply time clocks and the Union agrees that all members of the bargaining unit shall punch the time clock The Company agrees that if in the event that the time clock is removed from the store, managers shall report on the weekly work schedule any and all call ins, overtime hours and any other deviation from a teammate's regular schedule that may occur on a daily or weekly basis BARGAINING UNIT WORK, STUDENTS, PART-TIME AND TEMPORARY TEAMMATES (a) No persons excepting those covered by this collective agreement shall be allowed to perform work normally done by bargaining unit teammates, except for the purpose of temporarily instructing or training teammates; Notwithstanding the above, persons employed in the classifications excluded from this agreement pursuant to Article 2.01 may perform bargaining unit work during regular business hours of operation provided however the performance of such work does not cause the layoff or the sending home of a bargaining unit teammate prior to the end of their scheduled shift Part time and temporary teammates shall not be hired to replace regular teammates, to prevent the hiring of regular teammates or if their employment would result in reduced hours for regular teammates who would otherwise have done the required work. However, none of the above provisions shall prevent the Company from employing such temporary or part-time help as is required to fill vacancies due to illness, vacations and days off amongst regular teammates or peak business periods. ARTICLE 12 - HOURS OF WORK AND OVERTIME: In scheduling teammates to fill weekly shifts, the Company will give preference to the most senior teammate who wants to work the shift subject to the Articles below. This is provided however, that the teammate is able to adequately perform the work required (a) Full-time teammate shall be deemed to be those teammates who regularly work in excess of twenty-four (24) hours per week. The standard work week for full-time teammates shall consist of up to forty (40) hours per week comprised of five (5) eight (8) hour days

12 Part-time teammates shall be deemed to be those teammates who regularly work twenty four(24) hours or less per week Full-time teammates shall be given the opportunity to maximize their hours, in accordance with seniority, in a full schedule of work as defined in (a), before part-time teammates are scheduled or called in to work DAYS OFF (a) The company shall endeavour, wherever possible to grant full time teammates two (2) consecutive days off per week. The company agrees not to change the schedule of its teammates except in cases of emergency or when circumstances beyond its control necessitate. Should this occur at the end of a shift the principle of seniority and inverse seniority shall apply WORK SCHEDULES The Company will post work schedules for all its teammates by Thursday, 2:00 p.m., for the following week except when unable to do so due to unforeseen emergencies and circumstances beyond the control of the Company. Teammates will be scheduled for a minimum shift of three (3) hours and will be paid for three hours unless the teammate requests to leav~ work earlier. Any changes to the above mentioned work schedule shall be made when the affected teammate(s) have been given twenty-four hours notice of such work schedule change, except when unable to do so due to unforeseen emergencies and circumstances beyond control of the company Teammates can only grieve assignment of hours if a junior teammate has worked more hours in one week, than a senior teammate Overtime at the rate of time and one-half (1 %) the teammate's regular hourly rate shall be paid for all work performed: (a) (c) {d) after nine (9) hours in a day; after forty (40) hours in a work week; after five (5) days in a work week provided forty (40) hours have been worked in the prior {5) days in such work week; after six (6) consecutive days of work in a work week. Without restricting the generality of the foregoing, the Company will attempt to accommodate teammates who are unable to work overtime because of personal emergencies Teammates shall be entitled to a paid rest period of ten ( 1 0) minutes at their place of work for each half shift worked, which shall be commuted on the basis of ten (1 0) minutes for four {4) hours work time or major fraction thereof. Teammates will receive fifteen (15) minutes pay if they do not receive a ten (10) minute rest period There shall be a one-half (%) hour unpaid lunch break per shift of five (5) hours or more. Teammates must take their lunch break during their shift. They may however, take the break towards the end of the shift with the prior approval of management

13 12.10 The rest period shall be taken in such a manner that will ensure continuity of service to the Company's customers without abrogating the teammates right to the rest period, or violating Part IV subsection 22 of the Employment Standards Act. It is agreed that no teammate will be asked to take a break within the first one ( 1) hour of reporting for work It is agreed and understood that the hours worked by a teammate are to be recorded on weekly time cards which are to be recorded on a daily basis by the teammates and approved on a weekly basis by the store manager. In no event shall a member of management punch out or alter a teammate's time card without the teammates knowledge. Teammate's hours of work will be recorded through the use of a time clock or other mechanical recording device and each teammate must sign their time card or equivalent at the termination of their last shift of work Pay days shall be every second Thursday. The company will provide a separate or detachable itemized statement with each pay showing the number of hours at straight time, premium time and overtime rates, the wages rate and itemized deductions from the amount earned. All parties to this Collective Agreement will abide by the proposal to deduct tax on vacation pay over a four (4) week period There shall be no pyramiding of overtime or other premiums provided for in this Agreement Only hours actually worked on a store.holiday will be included in the teammate's total weekly hours for the purpose of calc\jiating overtime The parties agree that unless there are circumstances beyond the control of the Company, nothing in this agreement shall be construed as a guarantee of hours of work per day or days of works per week (a) Teammates who cannot report for work as scheduled must call the store and advise to this effect at least two (2) hours before starting time, except in circumstances beyond the control of the teammate. (c) If the company does not need the services of a given teammate on a given day, it may notify the teammate at least two (2) hours before the scheduled starting time and tell the teammate not to come to work. If this two (2) hour time limit is not met, then Article applies. For the purposes of this Agreement, it is agreed that a bona fide attempt by the manager to contact the teammate at his/her last telephone number of record shall be deemed to be valid notice. ARTICLE 13 - REPORTING PAY: If a teammate reports for work at the commencement of his regular shift without having previously been told not to report and there is no work available at his regular job, he shall be paid a minimum of three (3) hours pay at his regular straight time hourly rate

14 ARTICLE 14 - PAID HOLIDAYS: (a) The Company agrees to the following nine (9) public holidays with pay: New Year's Day Good Friday Victoria Day Civic Holiday Labour Day Canada Day Thanksgiving Day Christmas Day Boxing Day (c) Effective July 24, 2001, and each year thereafter, Remembrance Day shall be a paid holiday for full-time teammates only. A full-time teammate covered by this agreement who has completed one year of service shall be eligible for one (1) personal holiday which shall be the teammate's birthday during each calendar year provided that two (2) weeks notice is given to the Company prior to the birthday holiday Teammates shall be paid their regular daily rate of pay when no work is performed by them on such holidays, providing they have worked their last regularly scheduled shift prior to and following any such holidays. Regular Daily Rate" of pay means the average of the teammate's daily earnings over a period of thirteen (13) weeks proceeding the public holiday Teammates absent on either their regularly scheduled shift prior to or following such holiday shall be entitled to receive holiday pay unless such absence on either or both of these days was because of sickness, accident or other good cause arising from circumstances beyond the teammate's control Teammates shall be paid at time and one half (1 %) their regular rate of pay plus the holiday pay when they work on such holidays If a holiday falls during a teammate's vacation, he shall be paid for the holiday or granted an extra day off with pay which shall be mutually agreed between the teammate and her supervisor Teammates must have at least three calendar months of seniority in order to be entitled to the receipt of holiday pay Part-time teammates will receive holiday pay in accordance with the Employment Standards Act. ARTICLE 15 - BEREAVEMENT: In the event of the death of a member of a teammate's family, the teammate will be granted a leave of absence for a reasonable time and will be reimbursed of or the time necessarily lost from work up to a maximum of three (3) working days. This allowance will only be made where the circumstances required the teammate's absence from work to make arrangements for and/or to attend the funeral In the event of the death of a member of a teammate's family and the teammate is unable to attend the funeral due to time and distance constraints, the store manager may upon request of the teammate, grant two (2) days with pay as days of mourning

15 15.03 Ia) For the purposes of Article 15.01, the term "a member of a teammate's family" shall mean a husband, wife, child, parent, brother, sister, parentin-law, grandparent, brother-in-law and sister-in-law. The term "husband" and "wife" shall be deemed to have a like meaning to that which is contained in subsection 63(2) of the Canada Pension Plan For the purposes of Article 15.02, the term" a member of a teammate's family" shall mean a spouse, child, sibling, grandchildren,. parent and grandparent JURY DUTY When a teammate is called upon to service on a jury or when subpoenaed to act as a crown witness, the Company shall pay the difference between the fee received and the teammate's regular earnings for the actual time lost. It is further agreed that teammates shall notify a member of management as soon as practical following their receipt of notice of being required to act as a crown witness or on jury duty as the case may be. ARTICLE 16 - VACATIONS: A teammate with less than one (1) year's seniority who has ceased to be employed by the Company before receiving his vac~tion pursuant to the provisions of this Article shall receive vacation pay in accordance with the provisions of Part VII of the Employment Standards Act, (a) (c) (d) All full-time teammates who have acquired one (1) year's seniority with the Company prior to April 1st in any year shall receive two (2) weeks vacation with pay equal to four percent (4%) of a teammate's wages for the year immediately preceding April 1st, and shall be taken at a time or times to be arranged between the store manager and the teammate concerned. All full-time teammates who have acquired five (5) year's seniority with the Company shall receive three (3) weeks vacation with pay equal to six percent (6%) of a teammate's wages for the year immediately preceding April 1st, and shall be taken at a time or times to be arranged between the store manager and the teammate concerned. Full-time teammates who have acquired twelve (12) year's seniority with Company shall receive four (4) weeks vacation with pay equal to eight percent (8%) of a teammate's wages for the year immediately preceding April 1st, and shall be taken at a time or times to be arranged between the store manager and the employed concerned. Full-time teammates who have acquired twenty (20) year's seniority with the Company shall receive five (5) weeks vacation with pay equal to ten percent (10%) of a teammate's wages for the year immediately preceding April 1st, and shall be taken at a time or times to be arranged between the store and the teammate concerned Part-time teammates shall receive vacation pay, if entitled, in accordance with Part VIII of the Employment Standards Act, It is agreed between the Company and the Union that the following procedures will take place and will apply each year in the planning of a teammate's vacation

16 (a) (c) (d) (e) For the purposes of vacation seniority shall be the guiding factor provided the operation runs efficiently. The Company will arrange for a vacation schedule to be posted in the store by March 31st of each year. The vacation schedule will list those teammates entitled to a vacation in the vacation year beginning June 1st, and will reflect seniority in a descending order. Teammates so listed will indicate their vacation date preference on the list by April 30th of each year. The vacation schedule in its final form will be posted in the store by May 1 5th of each year. RULES: ( 1) No more than four (4) teammates may take their vacation during the same period, unless the manager in his/her discretion allows a greater number, dependent solely upon the service needed. (2) Discussions between the supervisors and.the teammates to schedule the teammate's vacation period will take place during the month of April each year and as soon as agreement is reached, the schedule will be installed as correct by the teammate. (3) When a teammate fails to make a choice of vacation period, the teammate must take her vacation outside of prime time (Easter, Christmas and the months of July and August). If a teammate has not taken her vacation by March 31st, in respect of the vacation year which ended on the preceding April 1st, then the Company shall pay her the vacation pay to which she is entitled. (4) In the event a dispute arises between teammates as to choice of dates, the teammate with greater seniority shall be given first choice. {5) Teammates leaving on their scheduled vacation shall be provided with vacation pay on the pay day coinciding with or immediately preceding the commencement of their vacation provided a written request is received by the Company not less than fourteen { 14) days prior to such pay day. Vacation pay shall be issued on a separate cheque apart from the regular pay cheque if such a practice is permissible by law and results in no penalty to the Company. ARTICLE 17 - COMPENSATION FOR ACCIDENTS AT WORK: In the case of an accident as a result of which the teammate is disabled for the balance of the day's shift, from earning full wages at the work at which he is employed, the Company agrees to give the teammate loss of earnings compensation covering the day the disability occurred up to one (1) day's pay on the basis of the amount he would have earned at his regular rate had he not been absent from work

17 ARTICLE 18 - HEALTH AND WELFARE: The Company agrees to pay one hundred percent ( 1 00%} of the cost of Life, Health Insurance and Dental Plan for full-time teammates who work regularly over thirty (30) hours per week and who have completed one ( 1 } continuous year of service with the Company, and who enrol in the Plan. This plan will be subject to the qualifications and conditions established by the carrier or carriers. The following is a description of the coverage: LIFE INSURANCE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE Class of Members Benefit Maximum Formula Benefit 1. All hourly union $ Teammates of Swiss Chalet Termination of Insurance: 65th Birthday EXTENDED HEALTH INSURANCE Part Benefits Deductible per Reimbursement family unit A Drug None 80% B Vision: **$ None 80% c Hospital: ward to semi-private None 100% D Supp. Health Care None 80% E Out or province Emeraency None 100% **Maximum eligible expenses for eyeglasses/contact lenses every 24 month period Termination of Insurance: member's 65th birthday DENTAL INSURANCE Part Benefits Deductible per family unit Reimbursement Maximum A Preventive None 80% $ The maximum amount payable applies to the eligible expenses incurred in a calendar year under Part A for the Member and for each insured dependent. Late Entrant Maximum: If an eligible person or an eligible dependant becomes insured more that 31 days after the date he became eligible of the dental Insurance Provision, the maximum amount payable for the eligible expenses incurred during the first 12 months of insurance under Part A will be limited to two hundred and fifty dollars ($250.00} for the member had for each insured dependant

18 18.02 In consideration of the Company's contribution to the premium cost of the Group Life, Health and Dental Insurance Plan, it is agreed and understood that the Company or its representative shall be consulted on any change to the group Insurance Policy, assignment of agents of record and/or administrators(s) of the Life, Health and Dental policies as set out in this Agreement Part-time teammates shall upon request by them in writing to the Company be allowed to purchase coverage of the drug plan and dental plan as set out in this article 'If the Company requests a medical certificate from a physician for an absence, the Company will pay for the cost of the medical certificate, if a cost is experience and provided the teammate provides proof of payment. ARTICLE 19 - GENERAL PROVISIONS: BULLETIN BOARDS The Company agrees to supply a bulletin board for the Union to post notices of interest to the Union members such as meeting notices, etc. Notices must be approved by the store manager. Such approval shall not be unreasonably withheld UNION REPRESENTATIVE- VISITS TO STORE The Company agrees that a full-time representative of the Union, after contacting the store manager may enter the premises during hours of employment to interview teammates and deal with the administration of this collective agreement. It is agreed that such visits will be timed to cause as little disruption as possible to the normal conduct of the Company's business. It is understood that the Union Representative may not engage in consultation with members during peak business periods except in the case of discharge STAFF MEALS (a) (c) The Company agrees that teammates who have completed their probationary period shall have the opportunity of purchasing for take home up to ten ( 10) quarter chicken dinners per week (dark meat only) at sixty percent (60%) of the dining room price. White meat may be considered at the Company's discretion. Such purchase must be authorized by management. The purchase must be acquired at the location the teammate works and only just prior to their shift or at the completion of their shift. All non-alcoholic beverages consumed by the teammates in the workplace at work are free. Non-alcoholic beverages means coffee, tea, and fountain soft drinks. On duty teammates will receive a discount of sixty percent (60%) in dining room menu price of a quarter chicken dinner and a discount of fifty percent (50%) in the dining room menu price of all other menu items and will be entitled to one free glass of milk with their meal. This provision only applies to meals which are consumed on the premises

19 ARTICLE 20 - GRATUITIES: It is agreed and understood that all gratuities shall remain the property of the waitresses and waiters that actually serve the table/customer. ARTICLE 21 - HEALTH AND SAFETY: The parties hereto and the teammates agree to co-operate to the fullest extent reasonably possible in the prevention of accidents and the promotion of safety and health of the teammates of the Company and the Company shall make necessary provisions for the safety and health of teammates during the hours of their employment. It is hereby agreed and understood that it shall be the duty of the teammates to make use of all protective devices and safety equipment made available by the Company The Company shall maintain on its premises, not fewer than four (4) proper fire extinguishers and a proper first aid kit, which shall be inspected from time to time and be accessible to the teammates In the event that a teammate suffers an occupational injury requiring medical attention, such teammate will be provided with transportation for emergency treatment and if medically unable to return to work shall be paid for the balance of his scheduled shift during which the accident occurre,d The Company shall endeavour to provide reasonable accommodation for teammates for dressing and consuming meals, wherever possible and where such accommodation does not currently exist. The Company agrees that these facilities will be maintained in a clean and fit condition. ARTICLE 22 - STATIONS: It is agreed and understood that stations are to be rotated between waitresses/waiters on a fair and equitable basis required. Mats will be provided in areas of the dining room where and when ARTICLE 23 -WAGES: Teammates hired after July 24, 2000, will be remunerated in accordance with Article 23, Schedule ua". Teammates will then continue to progress through the wage grid until they reach the top rate at which time they will be subject to the percentage increase outlined in Article below Teammates who are presently at or above the top rates in their classification as shown in Appendix II A" will receive increases as follows: Effective 24 July, 2001 Front of the house Back of the house 1.5% increases to Gratuity Teammates 2% increases to non-gratuity Teammates

20 Teammates who are presently below the top rate in their classification as shown in Appendix u A" will continue to progress through the wage grid until they reach the top rate at which time they will be subject to the percentage increase outlined in Article above. ARTICLE 24 - DURATION OF AGREEMENT: This Agreement shall be in effect from the 24th of July, 2000 and until the 23rd of July 2002 unless otherwise stated, and thereafter shall continue from year to year after that date, unless either party gives notice, in writing, to the other of its intentions to terminate the agreement or to enter into negotiations for the purpose of amending the agreement, within a period of ninety (90) days prior to the 23rd day of July, 2002 or any subsequent anniversary of that date If notice of intention to amend is given, in writing, in accordance with the provisions of Section above, negotiations shall commence forthwith and if such negotiations do not result in agreement prior to the date of termination of this agreement, then this agreement shall remain in effect and shall not terminate until an amended agreement is executed, or until conciliation proceedings under the Labour Relations Act of the province of Ontario are completed, whichever event first occurs. SIGNED THIS --fl DAY OF,I!J.~, 2000 at Sudbury, Ontario. IGNED FOR THE COMPANY SIGNED FOR THE UNION PAUL HARD Committee Member G~814l~~- Committee Member ROBIN W. McARTHUR President, Northern Ontario Joint Council -and- International Vice-President R.W.D.S.U./U.F.C.W

21 APPENDIX "A" General G-1 Persons who are above the rates as set out above shall be red circled in their current rates. G-2 In the event that the minimum wage increases to the extent that a teammate is on a rate that is less than minimum wage, such teammate shall be placed on the next highest wage progression scale that would give them an Increase and shall progress up the scale each six (6) months thereafter. G-3 During the terms of this collective agreement, any new job and/or classification to be covered under the terms and conditions of this agreement shall be posted. The parties agree to meet within thirty (30) days to determine the appropriate rate of pay for such classification. Should the parties not be able to agree, such question may be submitted to arbitration by either party

22 SCHEDULE "A" WAGE GRID "A" For all teammates hired after July 24, 1997.saa mgs 12 mgs 18 mos 24 mgs 30 mos 36 mos Kitchen Help Bartender Cashier Dishwasher Take Out Server Students WAGE GRID "B". Teammates who are presently at the top rate in their classification on July 24, 2001, shall be paid as follows: Kitchen Help Bartender Cashier Dishwasher Server Teammates who are higher than the rates in Wage Grid "B" on July 24, 2001 shall be paid these increases: Front of the house (waiter/waitress bar) Back of the house (kitchen) 1.5% Gratuity 2% Non-Gratuity

23 LETTER OF UNDERSTANDING BETWEEN: ONTARIO LIMITED c.o.b. as SWISS CHALET NUMBER 1175 (hereinafter referred to as the "Company") AND: NORTHERN ONTARIO JOINT COUNCIL - of the - RETAIL, WHOLESALE AND DEPARTMENT STORE UNION, DISTRICT COUNCIL -of the- UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION (hereinafter referred to as the "Union") If the Company decides, during the term of this Collective Agreement, to add or integrate a new concept or brand into the existing location, the Union is committed to discussing and developing new wage rates and classifications that would reflect the needs of the new business. SIGNED THIS _:j_ DAY OF J. ~13 12, 20G1Qt Sudbury, Ontario. SIGNED FOR THE COMPANY SIGNED FOR THE UNION Owner

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