Common use of Timing of Annual Adjustments Clause in Contracts

Timing of Annual Adjustments. Wages will be increased by a percentage equal to the Annual Adjustment (equal to the sum of the Base Adjustment and the Improvement Factor) plus or minus any Extraordinary Adjustment (see Table 1, below). Table 1: Annual Adjustment Extraordinary Adjustment Total Adjustment Base Adjustment Continuous Improvement Incentive (A) (B) (C) (D) Quality Productivity Safety Cost Reduction Annual % change in CPI 0 or 0.25 0 or 0.25 0 or 0.25 0 or 0.25 +/- % D = A +/- C B = Lump Sum Payment A = Annual % change in CPI B = 0.25% for meeting each target (Quality, Productivity, Safety, Cost Reduction) C = +/- an amount not to exceed A+B D = Total Annual Adjustment Unless the ERRC determines otherwise, the Annual Adjustment and Continuous Improvement Incentive will be implemented on January 1 of each year. The parties recognize and agree that a transitional wage adjustment may be implemented should a Division become subject to the terms of this Agreement prior to their next full annual adjustment date. The adjustment shall commence in the first pay period following each Division’s annual adjustment date, and on the applicable anniversary date thereafter.