Common use of Escalation Adjustment Clause in Contracts

Escalation Adjustment. (1) Effective May 29, 2011, an Escalation Adjustment will be determined by computing the percentage increase in the U.S. Bureau of Labor Statistics National Consumer Price Index for Urban Wage Earners and Clerical Workers, hereafter called "CPI- W" (1982-1984=100), between March 2010 and March 2011. (i) If the percentage increase of the CPI-W exceeds the cumulative percentage increase to the Maximum Rates of each wage schedule for the Initial General Wage Increase (GWI), plus the second, and third GWI’s, an Escalation Adjustment shall be applied by multiplying the percentage increase in the CPI-W. The result shall be added to the third scheduled GWI and applied to the Maximum Rates and Minimum Rates in effect on May 28, 2011. (ii) A partial percent increase shall be rounded to the nearest one tenth of one percent. (2) In no event shall a decrease in the CPI-W result in a reduction of any wage rate. (3) In the event the Bureau of Labor Statistics does not issue the appropriate Consumer Price Indexes on or before the dates referred to in paragraphs 1, Escalation Adjustments required by such appropriate indexes shall be effective at the beginning of the first payroll week after receipt of the indexes. (4) No adjustment, retroactive or otherwise, shall be made as the result of any revision which may later be made in the first published figures for the CPI-W for March 2010 and March 2011. (5) The Escalation Adjustments are dependent upon the availability of the CPI-W in its present form and calculated on the same basis as the CPI-W for March 2009. In the event the Bureau of Labor Statistics changes the form or the basis of calculating the CPI-W the Company and the Union agree to request the Bureau to make available, for the life of this Agreement, a CPI-W in its present form and calculated on the same basis as the CPI-W for March 2009, which was 207.218 (1982-1984=100). (6) It is expressly recognized by the parties that this Escalation Adjustment provision applies only for the life of this contract.