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7.05Each of the parties hereto will bear its own expense with respect to any arbitrationproceedings. The parties hereto will bear jointly the expenses of the arbitrator on anequal basis.7-06The arbitrator shall not be authorized, nor shall the arbitrator assume authority, to alter,modify, or amend any part of this Agreement, nor to make any decision inconsistent withthe provisions thereof, or to deal with any matter not covered by this Agreement.7.07The decision of the arbitrator shall be final and binding on the parties.- Management Grievances and Group GrievancesARTICLE 88.01Any grievance instituted by management may be referred in writing to the PlantCommittee within five ( 5 ) f i l l working days of the occurrence of the circumstancesgiving rise to the grievance and the Plant Committee shall meet within five ( 5 ) workingdays thereafter with management to consider the grievance. If final settlement of thegrievance is not completed within five ( 5 ) working days of such meeting, the grievancemay be referred, by either party, to an arbitrator as provided in Article 7 at any timewithin thirty (30) calendar days thereafter, but not later.8.02The Union shall have the right to initiate a group grievance or a grievance of a generalnature at Step No. 2 of the Grievance Procedure within five ( 5 ) full working days of theoccurrence of the circumstances giving rise to the grievance and the management shallmeet within five (5) working days thereafter with the Plant Committee to consider thegrievance. If final settlement of the grievance is not completed within five (5) workingdays of such meeting, the grievance may be referred, by either party, to an arbitrator asprovided in Article 7 at any time within thirty (30) calendar days thereafter, but not later.8.03The parties agree that the time limits set out in Articles 6, 7 and 8 herein can be extendedby mutual consent of the parties in writing.ARTICLE 9-Discharge and Discipline9-01 A claim by an employee that h e h e has been discharged or disciplined withoutjust causeshall be treated as a grievance if a written statement of such grievance is lodged with the

Plant Superintendent at Step No. 2 of the grievance procedure within ten (10) workingdays after the employee is discharged or disciplined. Such special grievance may besettled by:(a)confirming the management’s action in dismissing or disciplining the employee;or(b)(c)reinstating with full seniority; orany other arrangementwhich isjust and equitable in the opinion of the conferringparties or the arbitrator.9.02An employee who has been dismissed without notice, shall have the right to interviewhisher Union Steward for a reasonable period of time, before leaving the Companypremises.9-03Any notice of disciplinary action which is intended to form part of an employee’s recordshall be given in the presence of a Union Steward, or in writing, with a copy given to theUnion.ARTICLE 30-No Strikes: No Lockouts10.01 In view of the orderly procedures established by this Agreement for the settling ofdisputes and the handling of grievances, the Union agrees that, during the life of thisAgreement, there will be no strike, picketing, slow down or stoppage of work, eithercomplete or partial, and the Company agrees that there will be no lockout.ARTICLE 11- Wages11.01 The Company and the Union agree that the hourly wage rates shall be as set forth inSchedule “A” hereto and the piece work rates shall be as set forth in Schedu1e“B” hereto,which Schedules are hereby made a part of this Agreement.11.02 The Company and the Union agree that the piece work rates shall not be revised untilthere is a change in the method used. Any such revision shall be based on fairness and-8-

equity and shall give an opportunity for additional earnings. The Company agrees that itwill discuss any revision with the Union before such is carried into effect and the partiesagree that the fairness and equity of any such revision shall not be challenged for a periodof sixty (60) days from the commencement of its operation. Any adjustment made as aresult of a challenge shall be effective from the date the revised rate was put into effect.11.03 It is agreed that the Learner rate shall only be paid for a total of three (3) mths aftercompletion of the probationary period. Employees shall then be paid at the regular rateofpay for the classification involved.11.04 (a)The Company shall pay a shift premium for hours work on the afternoon shift asfollows:(i)Forty-four cents (44)per hour commencingApri1 1,200 1;(ij)Forty-five cents (45) per how commencing April 1,2002;(iii Forty-six cents (46)per hour commencing April 1,2003;(iv)Forty-eight cents (48)per hour commencing April 1,2004;(VIFifty cents (50) per hour commencing April 1,2005,The Company shall pay a shift premium for hours work on the night shift asfollows:(i)Fifty-seven cents (57) per hour commencing April 1,200 1 ;(ii)Fifty-nine cents (59) per hour commencing April 1,2002;(iii)Sixty-one cents (6 1) per hour commencing April 1,2003;(iv)Sixty-three cents (63) per hour commencing April 1,2004;(v)Sixty-six cents (66)per hour commencing April 1,2005.-9-

11.05 All hourly wage and piece work rates shall be in accordance with Schedules "A" and "B'Iattached hereto. It is understood and agreed that notwithstanding the fact that certainemployees may currently be paid rates in excess of the rates set forth in Schedule "A"hereto, such employees shall receive the fill increase referred to in thjs Article and thehourly rate for such employees shall be adjusted accordingly.11.06 The Company agrees that all employees shall be paid on a weekly basis.11.07 Piece work employees working on time work at the request of the Company will be paidtheir piece work average.11.os The Company and the Union agree that piece work rates shall be calculated on a dailybasis. The Company further agrees to pay employees for any time not worked on piecework the hourly wage rate on a daily basis.1 1.09 The Company shall noti@ the Union, in writing, of any newjob classifications which areintroduced into the workplace.ARTICLE 12- Hours of Work12.01 The followingparagraphs are intended to define the normal hours of work and shall notbe construed as a guarantee of hours of work per day or per week, or days of work perweek.12.02 The standard work week shall consist of forty (40) hours per week, Monday to Friday,eight (8) hours each day.12.03 Overtime at the rate of time and one-half the employee's regular rate of pay shall be paidfor:(a all work performed in excess of eight (8) hours per day;overtime at the rate of time and one-half for all work performed on Saturday;(4overtime at the rate of time and one-half for all employees who have been paidpiece work rates;- 10-

(d)Overtime at the rate of double time on the same basis shall be paid for all workperformed on Sunday.(e)The Company shall keep up-to-date records of all overtime worked for employeesinspection.(0The Company and the Union agree that opportunity for overtime shall bedistributed equally amongst the employees who normally perform the work to bedone.12.04 A rest period of ten (1 0) minutes away from work will be provided during the first half ofeach shift and another ten minute rest period away fiom work will be provided during thesecond half of each shift.12.05 The Company shall give notice of overtime as far in advance as is possible and practical.Overtime work shall be on a voluntary basis, and it is mutually agreed that overtime shallbe distributed as equitably as possible among the employees who normally perform thework.12.06 Employees who have been requested to work two (2) hours or more of overtime, shallreceive a fifteen minute rest period on Company time in order to eat their lunch, plus sixdollars ( 6.00) for meal allowance. Effective April 1, 2004, the meal allowance will beincreased to eight dollars ( 8.00).12.07 Any shift that starts at 2:OO pm.or later shall be considered the afternoon shift. Any shiftthat starts at 1O:OO p.m. or later shall be considered the night shift.12.08 Wash-Up PeriodThe Company agrees to grant each employee two (2) five minute wash-up periodsper shift; one immediately prior to lunch and one at the end of the shift.Employees who leave their work station without just cause before the wash-upperiod shall be the subject of discipline.-11-

ARTICLE 13-Reporting Time and Recall to Work13.01 Any employee who reports for work at hisher regular starting time on a scheduled workday without having been notified before leaving home that no work is available shall beguaranteed four hours work or shall receive four hours pay at hisher regular rate. Thisprovision shall not apply where the unavailability of the work is due to fire, flood, powerfailure, labour dispute or other cause beyond the control of the Company.13.02 Any employee who has completed hisher regular shift and leaves the plant and is thenrecalled to work shall be guaranteed four hours work or shall receive four hours pay atthe overtime rate.ARTICLE 14- Statutory Holidays14.01 The following shall be considered as paid holidays:New Year’s DayCanada DayThanksgiving DayChristmas DayBoxing DayGood FridayVictoria DayLabour DaySimcoe Day (Civic Holiday)The day before ChristmasThe day before New Year’s Day14.02 Each employee shall receive hisker regular average hourly earnings of the previous payperiod for eight (8) hours for each of the above named holidays.14.03 Where any of the holidays enumerated in paragraph 14.01 of this Article falls on aSaturday or a Sunday, the Company shall, at its discretion, observe the holiday on eitherthe preceding Friday or the succeeding Monday.14.04 An employee to be eligible for holiday pay must work the last scheduled shift precedingthe holiday and the first scheduled shift following the holiday unless such employee isabsent with pay under the provisions of Article 16 hereof.14.05 In the event of a Christmas shutdown, employees who do not report on the dayimmediately following the shutdown shall be entitled to statutory holiday pay, providinghe/she reports to work within three (3) days of the resumption of operations.- 12-

14.06 Where a holiday falls while an employee is on vacation under Article 15 hereof, hdsheshall be given at the option of the Company an extra day of vacation with pay either atthe beginning or at the end ofhidher vacation period or an extra day’s pay in lieu thereof.14.07 If an employee being paid hourly rates shall work on one of the above named statutoryholidays, hehhe shall be compensated for such work at the rate of double time hiskerbasic rate (in addition to hisher holiday pay) and if an employee being paid piece workrates shall work on one of the above named statutory holidays, he/she shall becompcnsated for such work at the rate of double time hisher average rate for the payperiod (in addition to hisher holiday pay).ARTICLE 15- Vacation with Pay15.01 All employees who have completed less than five ( 5 ) years of employment before July 1of any year shall receive two weeks vacation and shall receive as vacation pay an amountequal to four per cent (4%) of all wages received for actual work for the Company duringthe twelve (12) months immediatelypreceding July 1 in that year.15.02 All employees who have completed more than five (5) years o f continuous or non-continuous service before July 1 of any year shall receive three weeks vacation and shallreceive as vacation pay six per cent (6%) of all wages received for actual work for theCompany during the twelve months immediately preceding July 1 in that year.15.03 All employees who have completed more than twelve (12) years of continuous or noncontinuous service before July 1 of any year shall receive four weeks vacation and shallreceive as vacation pay eight per cent (8%) of all wages received for actual work for theCompany during the twelve (12) months immediately preceding July 1 in that year.15.04. All employees who have completed more than twenty-four (24) years o f continuous ornon-continuous service before July 1 o f any year shall receive five weeks vacation andshall receive as vacation pay ten per cent (10%) of all wages received for actual work forthe Company during the twelve (12) months immediately preceding July 1 in that year.Effective April 1, 2002, the twenty-four (24) years shall be reduced to twenty-three (23)- 13-

years. Effective April I , 2004 the twenty three (23) years shall be reduced to twenty-two(22) years.15.05 All employees who have completed more than thirty-five (35) years of service shallreceive an additional one week’s vacation and shall receive as vacation pay an additionaltwo per cent (2%) of all wages received for actual work for the Company during thetwelve (12) months immediately preceding July 1 in that year. Effective April 1, 2002,the thirty-five (35) years shall be reduced to thirty-four (34) years. Effective April 1,2004, the thirty-four (34) years shall be reduced to thirty-three (33) years.15.06 The terms “wages” as used in this Article shall include overtime premiums, piece workrates, shift differentials and all payments for time actually worked.15.07 A n employee who leaves the Company before becoming entitled to a vacation asprovided in this Article shall receive in lieu thereof the amount provided for in theEmDlovment Standards Act (Ontario) and the regulations passed pursuant thereto.15.08 Vacation schedules are to be posted before May 1 annually. In fixing vacation schedules,preference shall be given to vacation requests on a seniority basis subject tomanagement’s ability to maintain a sufficient working force to handle necessary workduring any vacation period. An employee who desires one continuous vacation periodmay use hisher seniority as a basis of preference for one continuous period subject tomanagement’s ability to efficiently operate the plant. Under special circumstances,employees may change or amend their vacation choice subject to the approval of thePlant Manager. At no timc shall a senior employee be permitted to rcfuse to name hishervacation date(s) to the detriment of other employees.15.09 An employee who is hospitalized because of sickness or accident while on scheduledvacation, will be considered as being on sick leave during the period of such illness. A n yunused vacation time may be rescheduled at a future date, mutually agreeable to theemployee and to the Company.15.10 Employees shall receive their vacation pay, by separate cheque, the third (3d) pay periodof July.- 14-

- Bereavement, Jury and Injury PayARTICLE 1616.01 In the event o f the death of a member of an employee’s immediate family, the employeewill be granted a leave of absence with pay for time necessarily lost from work up to amaximum of three (3) working days. This allowance will be made only for the purposeof the employee arranging and attending the funeral, provided that an employee will begranted a leave of absence for one (1) day with pay in the event of the death o f a memberof hisher family without arranging or attending the funeral. The term “Member of anemployee’s immediate family” means husband, wife, child, father, mother, sister, brother,mother-in-law or father-in-law. In the event of the death of grandparent, brother-in-law orsister-in-law o f an employee, he/she shall be granted up to a maximum of one day’s leaveof absence with pay, provided the employee uses such time for the purpose of arrangingor attending the funeral of such deceased relative.16.02 Any employee who is required to serve on a jury shall be paid the difference between theamount paid for such service and hisher regular hourly rate for the time lost from hisherregular scheduled work shift by reasons of such service subject to the followingprovisions:(a)Employees must notify their foreman within a reasonable time after receipt ofnotice of selection for jury duty.(b)An employee called forjury duty and who is temporarily excused from attendanceat Court during working hours must report for work within a reasonable time.(,-)In order to be eligible for such payments, the employee must furnish a writtenstatement from the appropriate public official showing the date and time servedand the amount of pay received.16.03 Art employee who is at work for the Company and who is injured while performing suchwork, to the extent that hehhe must stop work and receive treatment, shall be paid theearnings he/she would normally have earned for the remainder of that day provided thatsuch payment shall be reduced by the amount o f any compensation received frpn anysourceby the employee for the time lost on that day.- 15-

ARTICLE1717.01 (a)- SenioritySeniorityas referredto in this Agreement shall mean length oftime of continuousservice in the employ of the Company and shall be on a plant-wide basis.(b)It is agreed by the parties that seniority for fringe benefits, i.e. vacations,pensions, welfare coverage, etc., shall apply on a Company-wide basis.It is further agreed by the parties that seniority for the purpose of issues such asvacancies, promotions, demotions, transfers, layoffs and recall after layoff, etc.shall apply separately to each location of the Company.The Company shall give preferential consideration to a person who has been laidoff from one location of the Company, and who possesses recall rights, for thepurposes of hiring into vacancies at another location. To be eligible for suchconsideration, an employee shall make an application to the Company so as todeclare hisher interest for alternative employment. Such applicants shall beassessed on the basis of their former service. In this regard, the Company agreesto the following:The Personnel Department telephone number and address at each plant ofthe Company will be provided by the Company to each laid off employee.Upon being paid off, an employee will be provided an employmentapplication form.The Company will notify the appropriate local Union Representativets) ofany new employment opportunities as soon as practicable prior to hiringwith monthly update.Each plant Personnel Department will prepare a listing of employees onlayoff.Such listing will be supplied to all plants and local unionrepresentatives. The Company shall accept application from the laid U employees, and forward them to the plant that the laid off employee hasdesignated on the application form.- 16-

Transfer of OperationsIt is further understood and agreed that employees at a location who are laid off asa result of the transfer by the Company of equipment or work from one location toanother, will be given preferential consideration for new employment, inaccordance with the above provisions.In the event of the future hire of such person in accordance with these and theabove provisions, full Company service will additionally be provided for the solepurpose of determining the period of recall entitlement, should such person belaid off from the new location.17.02 An employee will be considered on probation and will not be subject to the provisions ofthis Agreement nor shall hisher name be placed on the seniority list until after hdshe hascompleted(50) working days in any twelve month period. Upon completion of suchprobationary period, the employee’s name shall be placed on the seniority list withseniority dating back to the date he/she was last hired by the Company. The dismissal ofa probationary employee shall not be the subject of a grievance.17.03 In all cases of vacancies, promotions, demotions, transfers, layoffs and recalls afterlayoft senior employees shall be entitled to preference. In recognition, however, of theresponsibility of management for the operation of the plant, it is understood and agreedthat management shall have the right to pass over any employee who does not have theability and physical fitness to perform the available work.17.04 Seniority shall accumulate in the following circumstances only:(a)When off the payroll due to lay

THlS AGREEMENT made and entered into as of the 'i 7 day of k-P P- c ,2001, BET WEEN: GLOBE SPRING & CUSHION CO.LTD. OF THE FIRST PART AND UNITED STEEL WORKERS OF AMERICA OF THE SECOND PART WHEREAS the Ontario Labour Relations Board has certified the Union as the bargaining agent for the employees of the Company in the bargaining unit hereinafter described;