Contract, Table of Contents

Article / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12 / 13 / 14 / 15 / 16 / 17 /

Appendix / A / B / C / D / E /

Letter of Understanding / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12 / 13 / 14 / 15 / 16 / 17 / 18 / 19 /

Please read the disclaimer.

LETTER OF UNDERSTANDING #14
Re: Contracting Out
May 24, 2002

1. The Company agrees that, subject to the provisions set out herein, it will not contract out any work that:
   1. Will result in the termination, layoff, or reduction in work to regular Maintenance Employees;
   2. is maintenancework that could be performed by any Maintenance Employee with a right of recall.
   3. Local 300 Maintenance Personnel will continue to do maintenance as defined in the attached document.

2. The Company shall be entitled to contract out work provided that it has met the requirments of subsection 1 above, and it meets the following conditions:
   1. the work is necessary because of emergency conditions; or
   2. the work is of such a technical nature that the current regular maintenance employees in the bargaining unit or maintenance employees with a right of recall do not possess the necessary skills and qualifications to perform the work.
   3. the work that has been discussed or reviewed by the Joint Contracting Out Committee referred to in Section 3.

3. Notwithstanding the Company's right to contract out work as set forth herein, the parties agree to establish a Joint Contracting Out Committee which will meet monthly, comprised of equal representatives of the Company and the Plant Committee (a minimum of 2 from each party) for the purpose of discussing the Company's proposed contracts with a goal of ensuring they are done in a cost effective manner, first class workmanship, and in a timely fashion. The Committee members who will sign off and subsequently have them signed by the Brewery Manager will keep all minutes. The Company and Plant Committee agree to jointly work together to monitor the amount of "contract work" within Molson Vancouver.

4. The Company agrees to continue its practice of utilzing only those contractors who are subject to a union collective bargaining agreement. The Joint Contracting Out Committee will discuss this process in lieu of it not being feasible from a cost, quality and time perspective. (Keeping in mind, the goal of the Employer is not to use Non-Union Contractors.)

5. All capital projects will normally be contracted out to the completion of the project.

6. Any dispute concerning the interpretation, application or alleged violation of this Letter of Understanding can be advanced immediately to step 3 as a Policy Grievance pursuant to article 10 of the Collective Agreement.

Maintenance Work - The repair and upkeep of existing equipment (bottle/can/racking lines, brewhouse) in accordance with current design specification to keep them in a safe, effective condition while meeting their intended purposes. The exception is where special technical expertise is required. Maintenance work can be classified into two categories:

1. Proactive Maintenance
   1. Preventative Maintenance - Equipment inspection and non-destructive testing/vibration analysis to determine future repair needs and their urgency. Lubrication, minor adjustments and minor component replacement to prolong equipment life.
   2. Scheduled Maintenance - Extensive major repair, rebuilds, overhauls, component change-overs which require advanced planning; lead-time to assemble materials, scheduling equipment shutdown to ensure availability of repair-facility space and allocation labour.

2. Reactive Maintenance
   1. Unscheduled Repaires - Unscheduled non-emergency work of short duration. Work that can be accomplished within a required window.
   2. Emergency Repairs - Immediate repairs needed as a result of failure or stoppage of critical equipment during a scheduled operating period. Imminent danger to personnel and extensive further equipment damage as well as substantial production loss will result if equipment is not repaired immediately. Scheduled work must be interrupted and overtime, if needed, would be authorized in order to perform emergency repairs.

1. Construction - The creation of a new facility or the changing of the configuration or capacity of a building, facility or utility services.
2. Installation - The installation of new or rebuilt equipment or relocation of fixed equipment.

Contract, Table of Contents

Article / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12 / 13 / 14 / 15 / 16 / 17 /

Appendix / A / B / C / D / E /

Letter of Understanding / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12 / 13 / 14 / 15 / 16 / 17 / 18 / 19 /