Pulp, Paper and Woodworkers of Canada, Local 15 apprenticeships

Letter of Understanding

Between

Tembec Industries Inc., Pulp Group — Skookumchuck Operations
(the Company)
And

Pulp, Paper and Woodworkers of Canada, Local 15
(the Local)
Re: APPRENTICESIUPS

The Company and the Local agree to vary the terms of Article I — Apprenticeships (Bull Session Agreements
2008 —2012) to read as follows:

An Apprenticeship Committee shall be set up comprised of Union and Management representatives. This
Committee will provide oversight for the Apprenticeship Program.

An Apprenticeship Selection Committee will be formed with equal participation of both Management and
Union participants (2 of each) selected by both parties independently.

(a) Reference information

The Company will institute an Apprenticeship Program, set forth as Exhibit C to the Joint Labour
Agreement. However, it is understood that many aspects of Exhibit C are outdated and this
Apprenticeship Program will recognize the requirements of the most current apprenticeship authority
(ITA).

(b) Screening Process for Apprenticeship Applicants

The intent of the selection process is to ensure the best chance of success for the candidate
selected. The selection process will stand largely on its own merits, not subject to opinions of
those on the selection conunjttee.

1. Only applicants that possess all mandatory requirements will be considered for selection.
Human Resources will conduct the initial screening of all applicants (meet minimum
requirements as specified on job posting and as per ITA).

M~ndatorv Requirements
Applicants must meet the following requirements, in order. Should an applicant fail to meet
any requirement, they will not proceed in the process.

a. Meet minimum acceptable standards as identified in the Apprenticeship Selection Test
Criteria (ITA).
b. Meet standards with respect to bone fide occupational requirements (e.g. colour vision
assessment, etc.). Any medical exam required by the Company will be at the Company’s

2. Applicants that meet all the mandatory requirements (candidates) will be considered for
selection by the Apprenticeship Selection Committee. Applicants who are unsuccessful in
meeting the mandatory requirements will be advised that they will not be considered further on
this selection and also in what areas they can concentrate to improve their chances on future
postings.

3. Human Resources will provide full details (in confidence) of all apprenticeship selection tests
to the Apprenticeship Selection Committee for all candidates.

4. Access to personal (safety incidents, transcripts, personal record, etc.) information may be
required to complete evaluation process. Employees who refuse to provide such information
will be disqualified from the selection process.

The Apprenticeship Selection Committee, consisting of two Management and two Union representatives,
will evaluate, review and assess the candidates to identify the best candidate for a given apprenticeship.
To ensure continuity, the changing of evaluator mid-process is not acceptable unless extenuating
circumstances arise. Committee members with expertise in the field being selected are preferable.

Evaluation Procedure

Candidates will be evaluated by the Committee using the following factors and scoring will be
recorded on the attached summary sheet. All rankings will be based on a consensus of the
committee.

1. Candidates will be ranked based on performance on the Apprenticeship Selection Tests. The
candidate with the highest aggregate score will receive 10 credits down to 0 in reverse order
of ranking (1st — 10 pts., 2hldJ_9 pts., 3’~’ — 8 pts., 4th — 7 pts., 5th —6 pts., 6th 5 ~ ~th ~ pts,
8th — 3 pts, 9th — 2 pts, 10th — 1 pt.). In the event there are more than 10 candidates, all those
ranked beyond the 1 0th position will receive 0 credits.

2. Candidates will also be evaluated based on scoring on the Company aptitude tests
(Mechanical Reasoning & Abstract Reasoning). The candidate with the hi~~hest total score
will receive 10 credits down to 0 in reverse order of ranking (1~ — 10 pts., 2 — 9 pts., 3’~ — 8
pts.,4th_7pts.,5th_6pts.,oth_Spts,7th_4pts8th_3pts9th_2pts 10th_1 pt.). Jnthe
event there are more than 10 candidates, all those ranked beyond the 10th position will receive
0 credits.

3. Additional Education
Candidates will receive points for each successfully completed recognized course (related to
the trade applied for — as per list attached). The candidate with the most points will receive
10 credits with the balance of the candidates going down to 0 in reverse order of ranking (l~ —
l0pts., 2~’~9pts., 3’~’—8 pts., 4th_7 pts., 5th_6pts., 6th_5 pts, 7th_4pts, 8th_3 pts, 9th~~~2
pts, 10th — 1 pt.). In the event there are more than 10 candidates, all those ranked beyond the

iO~” position will receive 0 credits.

4. Training / Employment Practical Experience
All candidates will receive credit based upon practical experience (applicable to the trade —
see attached template). The candidate with the most points will receive 10 credits with the
balance of the candidates going down to 0 in reverse order of ranking (1~ — lOpts., 2~ —9
pts., 31~_8pts.,4th_7pts., 5th_6ptS., 6th~~~5pts, 7th_4pts 8th_3 pts, 9th_2pts, 10th1
pt.). In the event there are more than 10 candidates, all those ranked beyond the 10th position
will receive 0 credits.

5. Work History
The work history Of candidates will be considered and ranked as per the chart below.
Evaluators will consider such things as absenteeism/commendations/discipline during the
preceding 12 months only. The candidate ranked highest will receive 10 credits with the
balance of the candidates going down to 0 in reverse order of ranking (1st_ 10 pts., 2’~”— 9 pts.,
3~_8pts.,4th_7pts., 5th~_opts., 6th_5pts, 7th_4pts, 8th~~3 pts,9th_2pts, lOth_ipt.). In
the event there are more than 10 candidates, all those ranked beyond the 10th position will
receive 0 credits.

6. Interview
The Selection Committee will jointly interview, from a prepared list of questions (one will be
open ended), candidates and will individually assess and score each candidate. Candidates will
be ranked following the interview. Candidates will be provided with the questions 24
hours prior to the interview in order to prepare. The candidate ranked highest will receive
10 credits with the balance of the candidates going down to 0 in reverse order of ranking (1~—
lOpts., 2~’—9 pts., ~ 8 pts., 4th7 pts., 5th_6 pts., 6th_5 pts, 7th_4pts, 8th~3 pts, 9th~2
pts, 10th — 1 pt.). In the event there are more than 10 candidates, all those ranked beyond the
10th position will receive 0 credits.

Process of selection:

a. Following the evaluation of candidates, the Apprenticeship Selection Committee will review
the scores of all candidates. If a senior employee is within 3 points of the top score (Sub-
Total), the senior employee will be awarded the apprenticeship.

b. Unsuccessful candidates will be notified in writing. They will also be advised on what they
could do to improve their chance of success for future opportunities, if they so request

c. Should a problem arise with the above procedures, the Joint Apprenticeship Committee will
convene to address and resolve concerns prior to final selection of the apprentice.

Other than what is specified within this Letter, this Letter does not vary nor supersede any other terms of the
Joint Labour Agreement.

This Letter will be valid until the termination of the 2009-2012 Joint Labour Agreement. Either party may
cancel this Letter with 30 days written notice or within 7 days, if mutually agreed. In the event ofcancellation of this Letter, where apprenticeship selection and/or training commenced under the terms of this
Letter, the apprenticeship would continue in the manner laid out when the selection occurred or the training
commenced until such time as the apprenticeship is completed or terminated.

~V~ ~

On behalf of the Local

On behalf of the Company

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