FINAL OFFER

August 22 2002

Made by the British Columbia Terminal elevator operators

Association on behalf of:

Cascade Terminal
Pacific Elevators Limited
James Richardson nternational Ltd.
Saskatchewan Wheat Pool
United Grain Growers Ltd.

( the "Employers" or "Association")

To:

Grain Workers Union, Local 333

(the "Union")

1. Introduction

1.1
This final offer is made it to the union in an attempt to resolve the a outstanding issues in the current set of collective bargaining prior to the commencement of a labor dispute.

1.2
This final offer is open for acceptance by the union and its members to 4:00 p.m. on August 25, 2002. It is not accepted by that time, the association and its members reserve the right to withdraw the offer or to implement the terms of the offer or to commence a lockout without further notice except as required by law.

1.3
This final offer must be accepted in its entirety in order for it to be binding on the Association and the employers.

1.4
The terms of the collective agreement which was in effect for the term of January 1, 1993 to December 31, 2000 ( the" expired collective agreement") shall be renewed except as specifically modified by the terms of this final offer.

1.5 the
Certain of the terms of this offer are based upon the recommendations in the report dated the 30th of June 2002 made by Vincent L. Ready as a conciliator commissioner (" the Ready Report"). With this offer is based on the Ready report it will be identified in the offer itself.

1.6
The provisions of this final offer shall not be retroactive, except as specifically provided for in the offer itself.

2 Term

2.1
The term of the renewed collective agreement Shall be from January 1, 2001 to December 31, 2004

3 Hours of Work

Six and three shift system

3.1
A new continuous operation system will replace the previous continuous operations system. The basis of the new system will be a six and three shift schedule has described in attachment 1 of this offer. The parties also agreed to continue to study other alternative shift schedules.

3.2
Clause 5 (b)i of the collective agreement will be deleted and modified to provide that the shift schedule for continuous operations will be the six and three system has identified and described in the Ready Report except as modified further in this offer. Employees will only be paid for hours worked pursuant to the continuous schedule.

3.3
Clause 5 (b)ii of the collective agreement will be modified to provide that while on a six and three continuous system, maintenance may be provided on and on a continuous basis with a portion of the maintenance staff on a continuous schedule.

3.4
Clause 5 C i of the collective agreement should be deleted.

3.5
Clause 5 C ii of the collective agreement shift and weekend premiums will remain the same under the new continuous shift system. That is a Saturday work will be paid at 1.125 the hourly rate and 1.25 the hourly rate will be paid for Sunday work. Students will continue to not receive this premium.

3.6
Clause 5 d of the collective agreement delete references to continuous operations umpire.

3.7
Clause 5 E of the collective agreement the filling of vacancies in the new positions will be bulletined in a manner to accommodate the six and three continuous work schedule.

3.8
Clause 5g ii of the collective agreement will be deleted and replaced with language to provide that on a crew change, short or long hours will be treated in accordance with current practice. That this, an employee who would have worked more hours except for the crew change will be treated in accordance with past practice. Employees who worked extra hours as a consequence of crew change will be paid in accordance with overtime requirements.

3.9
Clause 5 (i) of the collective agreement will be deleted and replaced with the provisions for vacations as per page 11 Section E of the Ready Report. That is, vacations must always be taken at the start of work block.

3.10
Clause 5 K of the collective agreement will be deleted and replaced it with the recommendations in the Ready report at page 10, clause b except that in a calendar year, who in employer will be entitled to transfer from one system to another and back again without having to pay the penalty of overtime for the first two days on which they commence work on a new system. Only active employees would receive these overtime payments.

3.11
maintenance employees who moved from one system to another system will be treated similarly to current practices for training purposes. Similarly, employees moving from continuous operations to non continuous system for purposes of training and apprenticeship will be treated in accordance with the current practice.

3.12
With respect to the obligation to provide 48 hours' notice of layoffs, the notice of layoffs will include those employees who are not at work at the time of layoff.

3.13
For greater certainty, the six and three system will involve three crews, but those crews are not shift specific. That is, the crew employees who are working on a shift can be rescheduled to eight crew on another shift up on eight hours' notice similar to the system in effect during a non continuous operations.

3.14
Letter of understanding No. 7 relating to continue this shift operations shall be deleted.

3.15
Labor Day it would be added as a black day to the continuous shift system under clause 5 b of the collective agreement.

10 hour shift system

3.16
The 10 hour shift may be implemented by the employers. For greater certainty, the 10 hour shift will be implemented in accordance with attachment 2.

3.17
In addition to the foregoing, the 10 hour shift system will result in Sunday not been scheduled as a workday. Vacations would be taken commencing the first day of work block.

3.18
The 10 hour shift system is not a continuous system and therefore the rules applicable to a continuous schedule do not apply.

3.19
Statutory holidays will be worked as required by Business needs and no lieu days will be earned. An employee working as statutory holiday will be paid double time for hours worked plus 8 hours' pay.

3.20
statutory holiday pay for employees now working on the statutory holiday will be eight hours' pay.

3.21
Overtime on any scheduled day off will be paid time and one half for the full amount of the first shift work and double time for subsequent overtime shifts work.

3.22
A watchman will only be provided if the terminal is working a single to an hour shift.

4 Wages

4.1
The provisions for wage increases during the term of the agreement shall be as follows:
A:
Lump sum payments of $1,100 for the period January 1, 2001 to June 30, 2002 pro rated for the period of layoff.
B:
54¢ per hour wage increase effective January 1, 2003.
C:
68¢ per hour wage increase effective January 1, 2004.

4.2
Should the union wish to create a fund utilizing part or all of the above wage increases for 2003 and 2004 for the purpose of creating a special severance fund, they may do so on the basis that the employees contribute this money through assessments to the fund. This fund will be operated solely by the union.

5 Benefits

5.1
Effective January 1, 2003 the employers will set aside an amount up to 15¢ per hour to be used for benefit improvement. Any such expenditures will be directly deducted from the amount allowed for wage increases under a proposal 4.

6 Pensions

6.1
Effective January 1, 2004, each employee may contribute up to 25¢ per payroll man hour worked. This amount may be matched equally by the employers. Any such expenditure by the employers will be directly deducted from the amount allowed for wage increases under a proposal 4.

7 early retirement/special severance

7.1
The special severance arrangement will be in accordance with the terms of the ready report has found on pages 17 and 18 except as follows:

a. the contribution will be based on the amount of $50,000 per eligible employee and will be utilized only for the employees of the employer making the contribution.

b. the eligible employees a numbers are as follows:
Cascadia 7
Pacific 11
JRI 7
SWP 9
Agricore United 2

The formula in order of distribution would be:

a: age 60 by December 31, 2002 with a maximum of 20 year service $30,000 less $1,000 for each month or part thereof the employee is over 60.

B:Age 60 by December 31, 2002 with less than 20 years service $1,500 per year of service less $1,000 for each month or part thereof the employee is over 60.

C: under age of 60 and rule of 90 ( age plus years of service by December 31, 2002 ) -$30,000.

D: under age of 68 and rule of 85 ( age plus years of service by December 31, 2002) -$30,000

E: in reverse order of seniority for employees who have been laid off for a minimum of six continuous months as of the date of ratification $1,500 per year of service.

7.2
The payments made under this proposal will include any severance money is otherwise payable under the collective agreement and shall result in a severance of the employee for all purposes.

8 grievance arbitration procedure

8.1
The changes as proposed in the ready report will be implemented during the term of the collective agreement.

9 letters of understanding and past practices

9.1
Delete a letter of understanding No. 4 relating to hiring, and a letter of understanding No. 10 relating to the continuous operations umpire.

9.2
Letter of understanding No. 9 relating to shipping hours of work shall be clarified to provide for the extra hour or hours as being mandatory to be worked until 1:00 a.m. when required. No provision will be made for a one-hour lunch break in the letter.

9.3
With respect to dumping practices for temporary assignments, the practices will be changed so that the temporary assignments which result from vacation lieu days, sick days, etc. shall be assigned at the discretion of the employers. The provision of article 10 A shall not apply to work assignments whether temporary or otherwise.

9.4
Other than the following exception, the remaining issues of past practice and letters of understanding will be resolved within 60 days of ratification of or they will be referred to Vince Ready in accordance with the powers established on page 20 of the Ready report. Mr. Ready will be required to complete the review process and issue a decision within 30 days of the issues being referred to him.

9.5
Letter of understanding #1 should become clause 11.07, letter of understanding No. 3 should be added to clause 12.03, letter of understanding No. 5 should be added to article 23, letter of understanding No. 13 should be added to clause 12.01 b.

10 automation

10.01
Article 20 of the collective agreement will be modified to provide for a process of consultation in a timely manner.

10.2
The process of consultation should include discussion of the automation project, changes in the staffing of the terminal, the total numbers of employees required upon completion of the project, after taking all these factors into consideration, the net impact on employees in the terminal.

11 retention of seniority

11.1
Effective August 1, 2004 the provisions of article 10 will be amended to provide that:
a:
Employees with less than 10 years of service prior to the date of layoff shall retain their rights of recall for a period of 12 months from date of layoff.
b:
Employees with more than 10 years of service prior to the date of layoff shall retain their right to of recall for a period of 24 months the date of layoff.

11.2
Clause 4.04 shall be deleted from the collective agreement.

12 insurance coverage

12.1
Insurance coverage proposals will be resolved by virtue of the provisions of the ready report on page 25 of the report.

13 other issues

13.1
Overtime break. An employee who is embarking on working overtime following the completion of his or her shipped shall be given the right to a 20 minute break at any time during the four hour period of overtime.

13.2
Overtime obligation: delete clause 5 8.02 A of the collective agreement and substitute:
: It is understood that all of employees will work such overtime and perform such work as the employer may be necessary to carry out its operations. However, it is also understood that the employer will not unreasonably denying a request from an employee that he or she be excused from overtime work or discriminate against to any employee requests to be excused from overtime work.

13.3
Vacation:
: Employees can elect to receive their vacation pay in either a lump-sum payment or by being paid vacation pay as vacations are taken during the year. Once an employee makes the choice of being paid vacation pay over a year as vacation is taken, the employee will not be entitled to revert to the previous system of being paid vacation pay in one lump sum. The vacation pay will be calculated on the basis of earnings for the previous calendar year.

14 classifications

14.1
The classifications with an attraction at shall be consolidated into one classification.

14.2
The classifications included in quality-control/inspection areas shall be consolidated to one classification.

14.3
Classifications of Millwrights and sheet metal workers show the consolidated into one classification on January 1, 2003. The consolidated classification shall require no more than one chargehand. all new apprentices in the new mechanical trade will be trained as Millwrights and will be offered additional sheet Metal module is as determined by a joint committee of the employers, a the union and BCIT . Existing sheet metal tradesmen and all rights will be grandfathered in that trade if they so choose but they will be required to assist in other millwright or sheet metal work within the terminal. Grandfathered tradesmen will be classified within the mechanical trade classification.

15 items agreed

15.1
As provided in the ready report, all items previously agreed between the parties during the course of direct negotiations and/or during their discussions regarding other issues are deemed to be incorporated into this offer and will form part of the renewed collective agreement. Any proposal not specifically addressed in this offer is deemed to have been withdrawn.

16 resolution of disputes

16.1
Any disputes with respect to the resolution of the actual language of a renewed collective agreement will be resolved by Vincent L. Ready .