Cola Clause Sample Clauses
A Cola Clause, short for Cost of Living Adjustment clause, is a contractual provision that automatically adjusts payments or salaries based on changes in the cost of living index. Typically, this clause is used in employment contracts, pension agreements, or long-term service contracts to ensure that compensation keeps pace with inflation; for example, annual salary increases may be tied to the Consumer Price Index. The core function of a Cola Clause is to protect the real value of payments over time, thereby preventing erosion of purchasing power due to inflation.
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Cola Clause. Effective January 1, 1991 for every 1% increase in Vancouver CPI in excess of a 12% increase (measured over November, 1990) wages will be adjusted by 10 cents per hour. Changes will be measured and adjustments made where appropriate on a quarterly basis effective April, July, and October, 1991, and January, April, July and October, 1992, based on the CPI average for the three months preceding the measurement date.
Cola Clause. The cost of living allowance (COLA) based on the All Canada Consumer Price Index (CPI) published by Statistics Canada (1971 = 100) All Items shall be triggered when the CPI increases above 10 percent over the July 2003 figure for the first year (12 months) of the Collective Agreement. Adjustment dates will be as follows: July 1, 2009 July 1, 2010 July 1, 2011 October 1, 2009 October 1, 2010 October 1, 2011 January 1, 2010 January 1, 2011 January 1, 2012 April 1, 2010 April 1, 2011 April 1, 2012 Once triggered, the COLA shall be paid commencing on the adjustment date next following the month in which the COLA is triggered, calculated at one cent ($ .01) per hour paid for each full .275 increase in the CPI in excess of ten percent (10%). Any such adjustments will be incorporated into the wage rates. For the second year (12 months) of the Agreement, COLA shall be triggered when the CPI exceeds by ten percent (10%) the figure for July 2007 whereupon the COLA shall be paid commencing on the adjustment date next following the month in which the COLA is triggered calculated at one cent ($.01) per hour paid for each full .275 increase in the CPI in excess of ten percent (10%). Any such adjustments will be incorporated into the wage rates. For the third year (12 months) of the Agreement, COLA shall be triggered when the CPI exceeds by ten percent (10%) the figure for July 2008 whereupon the COLA shall be paid commencing on the adjustment date next following the month in which the COLA is triggered calculated at one cent ($.01) per hour paid for each full .275 increase in the CPI in excess of ten percent (10%). Any such adjustments will be incorporated into the wage rates. If the Consumer Price Index (1971 = 100) All Items published by Statistics Canada is discontinued, the parties shall negotiate an appropriate adjustment or conversion factor to assure that employees will receive that cost of living adjustment to which they would have been entitled had the Consumer Price Index been published as contemplated by the parties.
Cola Clause. The parties agree to reopen the contract to negotiate a COLA clause when and if the PSAC negotiates a COLA clause for CEIU members. The agreement re-opener would be for the purpose of negotiating COLA only.