LETTER OF UNDERSTANDING

17-LU-#10

Banking of Statutory Holidays

ENTERED INTO THIS 24th day of October, 1980.

The purpose of this Letter of Understanding is to record the agreement that an employee, who is normally required to work on Statutory Holidays, will be allowed to accumulate time off to a maximum of eight (8) hours for each Statutory Holiday worked on his regular shift for those employees assigned to an eight (8) hour shift schedule, and up to twelve (12) hours for employees assigned to twelve (12) hour shift schedule, in accordance with #6 of this Letter of Understanding. For each such Statutory Holiday worked the amount equal to eight (8) hours pay at the employee's regular basic hourly wage rate as defined in 14.08 (b) or at the basic hourly rate of his temporary assignment as set out in 14.07 (c) (hereinafter called 'holiday pay') will be accumulated and paid to the employee at the time he takes such accumulated time off.

The holiday pay received when the banked statutory holiday is taken or sold back shall be based on the average of all banked statutory holiday pay credited to the employee.

The specific terms of the Agreement are as follows:

1. Employee Eligibility

To be eligible to participate in the program an employee must meet the following requirements:

a. Achieve regular employee status as set out in Article 9.07 of the Collective Agreement.

b. Be normally required to work on Statutory Holidays.

In addition, when required to work on a Statutory Holiday, employees of Wharf Services (642-642) who have achieved regular employee status may also participate in the program.

2. Participation in the Program

To participate in the program each eligible employee must notify his Foreman of his intent by 05 December of each year.

3. Cancelling Participation

An employee's participation in the program shall be cancelled under the following conditions:

a. The employee is assigned to a job which does not require him to work Statutory Holidays. In this case the employee will be able to draw out all banked monies and cancel the banked time, or the employee may schedule the banked time to be taken off at a time acceptable to his new department.

b. The employee may elect to discontinue his participation. In this case the employee must so notify his Foreman in writing of his intent. On receipt of such a notice the Company will pay to the employee all banked monies on the next appropriate pay day and all banked time will be cancelled. An employee who discontinues his participation in the program may, if he is still eligible under the terms of Paragraph 1, begin participation in the program in the following year subject to the requirements of Paragraph 2.

4. Scheduling Procedure:

a. All accumulated time off will be taken at a time satisfactory to the Company and will be arranged when possible, in accordance with the expressed preference of the employee on the basis of departmental seniority.

b. Accumulated time off earned under this Agreement shall not be taken during the 'preferred period' as defined in Article 13.02 of the Collective Agreement and shall be scheduled only after all vacation and C.S.O. schedules have been established.

c. An employee who is given a banked Statutory Holiday off on either one or both qualifying shifts for Statutory Holiday pay, shall be considered to have worked on that shift or shifts for the purpose of Article 14.07 (a).

d. An employee's accumulated time off which has been scheduled but not taken because the Company requires the employee to work or he is off work for any reasons shall be rescheduled immediately.

e. Accumulated time off may be scheduled up to six months beyond the end of a cancellation date. Any time not taken at the end of that six month period will be cancelled and the monies owing will be paid to the employee on his next appropriate pay day.

5. Sell Back

In lieu of taking a banked Statutory Holiday, an employee shall be entitled to a payment equal to the amount defined in the preamble of this letter. Such payment shall be paid on the next appropriate pay day.

On the day following the end of pay period #6 of each year, any remaining banked Statutory Holidays accumulated during the previous payroll year will be deemed to have been sold back.

Where Statutory Holidays are deemed to have been sold back, the employee shall be entitled, on his next regular pay day, to a payment calculated in accordance with the preamble of this letter.

6. Employees assigned to shift schedule of twelve (12) hours shall also be entitled to bank applicable statutory holiday pay premium in addition to the eight (8) hours statutory holiday pay to total twelve (12) hours of pay at the regular hourly rate.

Differences arising between the parties shall be the subject of discussion by the Labour Relations Committee. The parties may cancel this Letter of Understanding at any time by mutual agreement. In any case this Letter of Understanding will lapse with the Collective Agreement unless specifically renewed by the Parties.

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