The Company and the Union are committed to improving BDL's competitiveness in the warehousing and distribution environment. Both parties realize that our future job security depends on successfully competing in this marketplace which will require a joint commitment to a process of continuous improvement in BDL's operations.

In order to address the competitiveness issues with which BDL is, and will be challenged, the Company and the Union will work together to address issues that do, or may inhibit competitiveness. Only by openly sharing business information relevant to competitiveness issues, and working together in addressing combating these issues, can the Company and the Union work towards job security for all employees.

The Company is committed to working with the Union in developing a program wherein all employees are encouraged to participate in improvement initiatives.

The parties therefore agree to establish a Joint Steering Committee and to formulate an ongoing program of employee involvement in business competitiveness issues.

The Committee will address issues such as:

• Planning for operational changes.
  
  
• Overall effectiveness and competitiveness of BDL in response to major product and market changes.
  
  
• Training employees in teamwork, problem solving techniques and business enhancement methodologies (i.e. Cost identification, cost benefit analysis).
  
  
• Technical/job skill enhancement and training.
  
  
• Health and Welfare benefits management including time paid but not worked (TPNW) issues.
  
  
• Occupational Health and Safety concerns.
  
  
• Hours of work flexibility to meet customer expectations and operational scheduling needs.
  
  
• Distribution and operational cost containment/reduction initiatives.

and any other issues that may enhance the competitiveness of Brewers' Distributor Ltd.

Sub-committees may be formed to address specific issues as determined by the Committee. The Committee will not engage in attempting to resolve grievances, amending the Agreement or circumventing any provisions of this Agreement.

The Committee will be comprised of equal representatives from the Company and the Union, with each side appointing their representatives.

The parties realize that this "partnership" program will take time to develop and that the current relationship between management and labour will require a commitment to change.

Members of the Committee will not suffer any loss in wages and will be paid by the Company for all appropriate expenses incurred.

Signed this 16th day of April, 2003 on behalf of: ...