Thank you, Mr. Speaker. Return to an oral question asked by Mr. Erasmus on May 25, 1998, with respect to red-circling under the proposed collective agreement.
The Final Settlement Offer includes the following paragraph describing what happens to employees who are red-circled:
-Employees whose March 31, 1998 salaries are greater than the salaries on the new pay schedules will have their current salary level protected by a conversion salary. This conversion salary will make up the difference between their March 31, 1998 salary and their salary on the new pay plan and will be received in addition to their base salary. As employees progress through the steps on the new grid, this conversion salary will continue to be added to their base salary.
Future increases to the new pay grid will correspondingly reduce the conversion salary, therefore gradually eliminating it.
Red-circling will work as follows:
1. If an employee's rate of pay under the proposed new job evaluation system is less than their current rate of pay at the same step on their pay range (i.e., if an employee is at step 3, and step 3 in the new pay range for the position is lower than the employees' current pay) then the new rate of pay for the employee remains the same as their current pay under the old system, but is calculated as follows:
April 1, 1998 pay = rate in new pay plan + (old rate pay - new rate of pay) For example:
Custodial Worker - Currently at Pay Level 12, Step 4 - Current Salary $36,383
Step 3 old range - Step 3 new range = $36,383 - $34,828 = $1,555.00 (conversion pay)
April 1, 1998 pay = $36,383
In addition, employees who are red-circled will receive a 2% increase in pay in 1998-99 as outlined below:
Employees whose March 31, 1998 annual salaries are greater than the April 1, 1998 annual salaries will be paid an annual amount equivalent to 2% of their March 31, 1998 annual salaries which will not be added to their March 31, 1998 salaries but which will be paid in bi-weekly instalments for the period of April 1, 1998 to March 31, 1999.
April 1, 1998 pay = $34,828 + $1,555. (conversion pay) + 2%
April 1, 1998 pay = $36,383 + $727.66
April 1, 1998 pay = $37,565.66
In addition, this employee will also be eligible for an annual increment in the year. The increment does not reduce the conversion salary.