ARTICLE 1

1. differences between the parties respecting the interpretation, application, operation or any alleged violation of a provision of this Agreement, including a question as to whether or not a matter is subject to arbitration; or

2. dismissal, discipline or suspension of an employee bound by this Agreement.

3. an alleged violation of a statute pursuant to clause 1.08

4.02 - Initial Discussion

(a) The employee shall discuss the complaint with his/her immediate supervisor no later than fourteen (14) calendar days after s/he first becomes aware of the circumstances that give rise to the complaint. The employee and the supervisor shall make every reasonable effort to resolve the complaint during this discussion.

(b) Failing resolution of the complaint under (a), a vessel-based employee shall next discuss the complaint with the master/captain on the watch, or where the vessel is not operational, engineering employees shall discuss the complaint with the senior engineer officer. The employee and the master/captain or senior engineer officer, as applicable, shall make every reasonable effort to resolve the complaint during this discussion.

(c) Failing resolution of the complaint under (a), a non vessel-based employee shall next discuss the complaint with the applicable departmental supervisor. The employee and the departmental supervisor shall make every reasonable effort to resolve the complaint during this discussion.

(d) The aggrieved employee shall have the right to have his/her Union shop steward present at discussions under this clause.

4.03 - Step 1 – Formal Grievance

(a) If the complaint is not resolved during the initial discussion, the Union shop steward shall present a grievance in writing, on the appropriate form, to the designated excluded representative or when such representative is located at a different point assembly, to a local supervisor within fourteen (14) calendar days of the completion of the discussions under clause 4.02. The designated local supervisor shall forward the grievance to the designated excluded representative authorized to deal with the grievance at Step 1 and provide the Union shop steward with a receipt stating the date on which the grievance was received. The grievance shall set out the nature of the grievance; the circumstances from which it arose; the Article or clause which has been violated, and the remedy required.

(b) The Union shop steward shall discuss the grievance with the designated excluded representative prior to the Step 1 response being issued. The Union shop steward and the designated excluded representative have the required authority to resolve grievances at this Step, and they shall make every reasonable effort to do so.

(c) The designated excluded representative shall reply to the grievance in writing to the Union shop steward, with copies to the local President and Union President within fourteen (14) calendar days of the discussion at this Step. The reply shall set out the facts as known to the Company, reasons for the Company’s position and the name of the designated excluded representative to whom the grievance is to be presented at Step 2, if the grievance is being denied.

4.04 - Step 2

(a) Within seven (7) calendar days of receiving the Company’s response at Step 1, if the grievance has not been resolved, the applicable local President, or his/her designate, shall forward the grievance, in writing, to the designated excluded representative at Step 2.

(b) Each designated excluded representative shall hold a maximum of two (2) regular Step 2

grievance meetings each month, provided there are grievances to be discussed. The location for both regular grievance meetings shall be by mutual agreement. The Union shall advise the Company, in writing, of the local Presidents that are to normally present their grievances at each of the regular grievance meetings. Grievances shall not normally be discussed at a regular grievance meeting unless they have been received by the excluded representative at least seven (7) calendar days prior to the meeting.

(c) The local Presidents and the designated representatives have the required authority to resolve grievances at this Step, and they shall make every reasonable effort to do so.

(d) The designated excluded representative shall reply to the grievance in writing to the applicable local President, with a copy to the Union President, within seven (7) calendar days of the discussion at this Step. The reply shall set out the facts as known to the Company, reasons for the Company’s position and to whom the grievance is to be presented at Step 3, if the grievance is being denied.

4.05 Step 3

(a) Within seven (7) calendar days of receiving the Company’s response at Step 2, if the grievance has not been resolved, the President of the Union, or his/her designate, shall forward the grievance, in writing, to the designated excluded representative at Step 3.

(b) Each designated excluded representative shall hold a regular Step 3 grievance meeting each month with the Union President, or his/her designate, at a mutually agreeable location, provided there are grievances to be discussed. Grievances shall not normally be discussed at the regular Step 3 grievance meeting unless they have been received by the excluded representative at least (7) calendar days prior to the meeting

(c) The Union President, or his/her designate and the designated excluded representatives have the required authority to resolve grievances at this Step, and they shall make every reasonable effort to do so.

(d) The designated excluded representative shall reply to the grievance in writing to the Union President within fourteen (14) days of the discussion at this Step.

4.06 Union Attendees at Step 2 and 3 Grievance Meetings

The Company shall pay employees, who attend Step 2 and Step 3 grievance meetings, at the request of or on behalf of the Union, at their applicable straight-time rates, to a maximum total expenditure for such purposes of forty thousand dollars ($40,000) in any calendar year. When this maximum total has been reached in any calendar year, Union attendees at Step 2 and Step 3 grievance meetings shall be considered on leave of absence without pay.

4.07 - Appointment Grievances

Appointment grievances shall follow the normal grievance procedure in accordance with clause 4.02 through to clause 4.05.

4.08 - Dismissal or Suspension Grievances

Grievances arising from a disciplinary penalty of four days or more shall be presented to the designated excluded representative at Step 3 within fourteen (14) calendar days of receipt of notice of discipline.

4.09 - Failure to Act

If either party fails to comply with the prescribed time limits, the grievance will automatically advance to the next step.

4.10 - Deviation from Grievance Procedure

(a) The Company agrees that, after a grievance has been initiated by the Union, the Company's representatives shall not enter into discussion or negotiation with respect to the grievance, either directly or indirectly, with the aggrieved employee without the consent of the Union.

(b) The Union agrees that the aggrieved employee shall not attempt to pursue his/her grievance through any other channel.

4.11 - Policy Grievance

Where either party to this Agreement disputes the general application, interpretation or alleged violation of an Article of this Agreement, the dispute shall be presented in writing to the appropriate Company or Union representative as the case may be, within twenty-eight (28) calendar days of the occurrence, or within twenty-eight (28) calendar days of either party becoming aware of the occurrence. Where no satisfactory agreement is reached, either party may submit the dispute to arbitration, as set out in Article 5 of this Agreement. It is understood that a policy grievance cannot be used to provide a remedy for an individual or group grievance.

4.12 - Group Grievance

The President of the Union or his/her designate may initiate a grievance on behalf of a group of employees at Step 3 no later than fourteen (14) calendar days after an employee first becomes aware of the circumstances giving rise to the grievance. The Union shall define the group of employees on whose behalf the grievance has been submitted.

4.13 - Technical Objections to Grievances

No grievance shall be defeated merely because of a technical error other than a failure to comply with the time limits in processing the grievance through the grievance procedure.

4.14 - Effective Date of Settlements

Settlements reached at any step of the grievance procedure in this Article, other than clause 4.11, shall be applied retroactively to the date of the occurrence of the action or situation which gave rise to the grievance, but not prior to the effective date of the Agreement in effect at the time of the occurrence or the date set by a Board of Arbitration.

4.15 - Amending Time Limits

The time limits fixed in this grievance procedure may be altered by mutual consent of the parties; but the same must be in writing.

4.16 - Third Party at Steps 2 and 3

The Company agrees that, should a grievance arise involving a licensed and unlicensed employee requiring Union representation for both members, a third party may be called in by the Union at Steps 2 and 3 to present said grievance.