Common use of Merit Clause in Contracts

Merit. a) In each year, an employee’s merit pay is based on their performance review and shall be awarded to all employees who achieve a "Meets Expectations” performance rating or above in their performance review. Merit pay increase shall be based on the table below. PG1 0.00% 0.00% 4.50% 6.75% 11.25% PG2 0.00% 0.00% 3.00% 4.50% 7.50% PG3 0.00% 0.00% 2.00% 3.00% 5.00% PG4 0.00% 0.00% 1.00% 1.50% 2.00% PG5 0.00% 0.00% 0.80% 1.20% 2.00% PG6 0.00% 0.00% 0.60% 0.90% 1.50% This table is intended to provide an overall expenditure on merit increases for the Bargaining Unit as a whole of one and one-half percent (1.5%). In the event that the demographics of the Bargaining Unit, combined with the actual distribution of performance ratings, results in an expenditure that is less than one point three percent (1.3%) or more than one point seven percent (1.7%), then the table shall be renormalized such that the overall expenditure falls within this range. The Company and SPEA have agreed to a joint committee to review and revise the merit grid. The above table will apply to 2017 merit increases but may be revised thereafter with agreement between SPEA and the Company, provided that the overall expenditure of merit increases for the Bargaining Unit remain cost-neutral. b) The Company shall provide to SPEA a detailed (per employee) breakdown of performance appraisal results immediately upon their completion. The list shall include employee overall assessment ratings, merit pay amounts, PG grade and current salary. SPEA recognizes its legal obligation to maintain the confidentiality of information related to individuals’ performance ratings/salaries and as such no identifying information shall be publicized in any way. Furthermore, such information shall only be accessible to SPEA’s Officers and staff. Access to such personal information to others shall only be granted with permission of the Company, which shall not be unreasonably withheld. c) At its discretion, the Company may reward individual employees with increases and/or bonuses over and above those established under the merit provisions. Where said increase is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. The Company will provide advance notification to SPEA of any exceptional merit increases and/or discretionary bonuses. d) The assumed distribution of merit is based on the following distribution guideline: Does Not Meet Expectations 2% Partially Meets expectations 10% Meets Expectations 63% Exceeds Expectations 20% Outstanding 5% The above guideline is an estimation only and does not presuppose a predetermined performance distribution. The percentage of Bargaining Unit members in the “Does not Meet Expectations” and “Partially Meets Expectations” categories are maximum percentages for each specific year. e) Salaries shall be administered within each grade on a merit basis. Salaries of employees shall be reviewed once per year and shall be increased, if appropriate, with changes effective as specified herein. Where the increase that would be awarded is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. f) Merit increases for employees shall be determined by their position on the merit grid. An employee’s position on the grid shall be determined by the following criteria: • Performance rating as determined by their annual performance review as per Article 18; • The PG classification of the employee. g) The decision to award an employee a merit increase less than the merit grid as per Article 20.02 (a) is at the discretion of the Company but shall be subject to the following: i) Merit shall not be withheld because the employees have been assigned work normally done by employees at a lower PG level unless the employees assigned such work have demonstrated inability to perform at the grade level in which they are classified; ii) For employees on approved leave without pay, or recalled after lay-off, merit pay will be prorated to cover the portion of the year during which the employee worked. h) Employees will receive full merit pay on maternity/parental leave regardless of when it falls. If the leave spans a significant portion of the year (or the entire year) such that a performance assessment is not feasible, the merit pay will be based on a rating of “3”. If an employee takes a personal leave before or after their maternity/parental leave, merit pay which takes effect on the following March 1st will be prorated. For example, if someone is absent for six months in a year on personal leave, their subsequent March st merit increase will be prorated to fifty percent (50%). i) Merit increases shall be based on the performance rating within the salary grade the employee was in at the end of the performance year. j) Performance rating is based on the employee’s job performance in the salary grade for which the employee spent >50% of their performance year.

Merit. a) In each year, an employee’s merit pay is based on their performance review and shall be awarded to all employees who achieve a "Successfully Meets Expectations” performance rating or above in their performance review. Merit pay increase shall be based on the table below. PG1 0.00% 0.00% 4.50% 6.75% 11.25% PG2 0.00% 0.00% 3.00% 4.50% 7.50% PG3 0.00% 0.00% 2.00% 3.00% 5.00% PG4 0.00% 0.00% 1.00% 1.50% 2.00% PG5 0.00% 0.00% 0.80% 1.20% 2.00% PG6 0.00% 0.00% 0.60% 0.90% 1.50% This table is intended to provide an overall expenditure on merit increases for the Bargaining Unit as a whole of one and one-half percent (1.5%). In the event that the demographics of the Bargaining Unit, combined with the actual distribution of performance ratings, results in an expenditure that is less than one point three percent (1.3%) or more than one point seven percent (1.7%), then the table shall be renormalized such that the overall expenditure falls within this range. The Company and SPEA have agreed to a joint committee to review and revise the merit grid. The above table will apply to 2017 merit increases but may be revised thereafter with agreement between SPEA and the Company, provided that the overall expenditure of merit increases for the Bargaining Unit remain cost-neutral. b) The Company shall provide to SPEA a detailed (per employee) breakdown of performance appraisal results immediately upon their completion. The list shall include employee overall assessment ratings, merit pay amounts, PG grade and current salary. SPEA recognizes its legal obligation to maintain the confidentiality of information related to individuals’ performance ratings/salaries and as such no identifying information shall be publicized in any way. Furthermore, such information shall only be accessible to SPEA’s Officers and staff. Access to such personal information to others shall only be granted with permission of the Company, which shall not be unreasonably withheld. c) At its discretion, the Company may reward individual employees with increases and/or bonuses over and above those established under the merit provisions. Where said increase is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. The Company will provide advance notification to SPEA of any exceptional merit increases and/or discretionary bonuses. d) The assumed distribution of merit is based on the following distribution guideline: Does Not Meet Expectations Needs Development 2% Partially Meets Mostly meets expectations 10% Meets Expectations Successfully meets expectations 63% Exceeds Expectations Consistently exceeds expectations 20% Outstanding Significantly exceeds expectations 5% The above guideline is an estimation only and does not presuppose a predetermined performance distribution. The percentage of Bargaining Unit members in the “Does not Meet ExpectationsNeeds Development” and “Partially Mostly Meets Expectations” categories are maximum percentages for each specific year. e) Salaries shall be administered within each grade on a merit basis. Salaries of employees shall be reviewed once per year and shall be increased, if appropriate, with changes effective as specified herein. Where the increase that would be awarded is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. f) Merit increases for employees shall be determined by their position on the merit grid. An employee’s position on the grid shall be determined by the following criteria: •  Performance rating as determined by their annual performance review as per Article 18; •  The PG classification of the employee. g) The decision to award an employee a merit increase less than the merit grid as per Article 20.02 (a) is at the discretion of the Company but shall be subject to the following: i) Merit shall not be withheld because the employees have been assigned work normally done by employees at a lower PG level unless the employees assigned such work have demonstrated inability to perform at the grade level in which they are classified; ii) For employees Employees on approved job-related leave without pay, or recalled after lay-off, merit pay will shall normally be prorated credited with salary adjustment(s) equal to cover the portion of the year during which the employee workedgrade adjustment. h) Employees will receive full merit pay on maternityMaternity/parental leave regardless shall not cause a deterioration in the position of when it falls. If the leave spans a significant portion of the year (or the entire year) such that a performance assessment is not feasible, the merit pay will be based on a rating of “3”. If an employee takes a personal leave before or after their maternity/parental leave, merit pay which takes effect on the following March 1st will be prorated. For example, if someone is absent for six months in a year on personal leave, their subsequent March st merit increase will be prorated to fifty percent (50%). i) Merit increases shall be based on the performance rating within the salary grade the employee was in at the end of the performance year. j) Performance rating is based on the employee’s job performance in salary relative to the salary grade maximum and minimum of the range for which the employee spent >50% of their performance yeargrade.

Merit. a) In each year, an employee’s merit pay is based on their performance review and shall be awarded to all employees who achieve a "Successfully Meets Expectations” performance rating or above in their performance review. Merit pay increase shall be based on the table below. PG1 SK 0.00% 0.00% 4.504.000% 4.800% 6.000% L1 0.00% 0.00% 4.500% 6.75% 11.25% PG2 L2 0.00% 0.00% 3.00% 4.50% 7.50% PG3 L3 0.00% 0.00% 2.00% 3.00% 5.005.0% PG4 L4 0.00% 0.00% 1.00% 1.50% 2.00% PG5 L5 0.00% 0.00% 0.80% 1.20% 2.00% PG6 L6 0.00% 0.00% 0.60% 0.90% 1.50% This table is intended to provide an overall expenditure on merit increases for the Bargaining Unit as a whole of one and one-half percent (1.5%). In the event that the demographics of the Bargaining Unit, combined with the actual distribution of performance ratings, results in an expenditure that is less than one point three percent (1.3%) or more than one point seven percent (1.7%), then the table shall be renormalized such that the overall expenditure falls within this range. The Company and SPEA have agreed to a joint committee to review and revise the merit grid. The above table will apply to 2017 merit increases but may be revised thereafter with by agreement between SPEA and the Company, provided that the overall expenditure of merit increases for the Bargaining Unit remain cost-neutral. b) The Company shall provide to SPEA a detailed (per employee) breakdown of performance appraisal results immediately upon their completion. The list shall include employee overall assessment ratings, merit pay amounts, PG salary grade and current salary. SPEA recognizes its legal obligation to maintain the confidentiality of information related to individuals’ performance ratings/salaries and as such no identifying information shall be publicized in any way. Furthermore, such information shall only be accessible to SPEA’s Officers and staff. Access to such personal information to others shall only be granted with permission of the Company, which shall not be unreasonably withheld. c) At its discretion, the Company may reward individual employees with increases and/or bonuses over and above those established under the merit provisions. Where said increase is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. The Company will provide advance notification to SPEA of any exceptional merit increases and/or discretionary bonuses. d) The assumed distribution of merit is based on the following distribution guideline: Does Not Meet Expectations Needs Development 2% Partially Meets Mostly meets expectations 10% Meets Expectations Successfully meets expectations 63% Exceeds Expectations Consistently exceeds expectations 20% Outstanding Significantly exceeds expectations 5% The above guideline is an estimation only and does not presuppose a predetermined performance distribution. The percentage of Bargaining Unit members in the “Does not Meet ExpectationsNeeds Development” and “Partially Mostly Meets Expectations” categories are maximum percentages for each specific year. e) Salaries shall be administered within each grade on a merit basis. Salaries of employees shall be reviewed once per year and shall be increased, if appropriate, with changes effective as specified herein. Where the increase that would be awarded is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. f) Merit increases for employees shall be determined by their position on the merit grid. An employee’s position on the grid shall be determined by the following criteria: • Performance rating as determined by their annual performance review as per Article 18; • The PG salary classification of the employee. g) The decision to award an employee a merit increase less than the merit grid as per Article 20.02 (a) is at the discretion of the Company but shall be subject to the following: i) Merit shall not be withheld because the employees have been assigned work normally done by employees at a lower PG L-scale level unless the employees assigned such work have demonstrated inability to perform at the grade level in which they are classified; iih) For employees Employees on approved job-related leave without pay, or recalled after lay-off, merit shall be credited with scale adjustments, but not merit. Merit pay will be prorated to cover the portion of the year during which the employee worked. hi) Employees will receive full merit pay on maternity/parental leave regardless of when it falls. If the leave spans a significant portion of the year (or the entire year) such that a performance assessment is not feasible, the merit pay will be based on a rating of “3”. If an employee takes a personal leave before or after their maternity/parental leave, merit pay which takes effect on the following March January 1st will be prorated. For example, if someone is absent for six months in a year on personal leave, their subsequent March st January 1st merit increase will be prorated to fifty percent (50%). i) Merit increases shall be based on the performance rating within the salary grade the employee was in at the end of the performance year. j) Performance rating is based on the employee’s job performance in the salary grade for which the employee spent >50% of their performance year.

Merit. a) In each year, an employee’s merit pay is based on their performance review and shall be awarded to all employees who achieve a "Successfully Meets Expectations” performance rating or above in their performance review. Merit pay increase shall be based on the table below. PG1 0.00% 0.00% 4.50% 6.75% 11.25% PG2 0.00% 0.00% 3.00% 4.50% 7.50% PG3 0.00% 0.00% 2.00% 3.00% 5.00% PG4 0.00% 0.00% 1.00% 1.50% 2.00% PG5 0.00% 0.00% 0.80% 1.20% 2.00% PG6 0.00% 0.00% 0.60% 0.90% 1.50% This table is intended to provide an overall expenditure on merit increases for the Bargaining Unit as a whole of one and one-half percent (1.5%). In the event that the demographics of the Bargaining Unit, combined with the actual distribution of performance ratings, results in an expenditure that is less than one point three percent (1.3%) or more than one point seven percent (1.7%), then the table shall be renormalized such that the overall expenditure falls within this range. The Company and SPEA have agreed to a joint committee to review and revise the merit grid. The above table will apply to 2017 merit increases but may be revised thereafter with by agreement between SPEA and the Company, provided that the overall expenditure of merit increases for the Bargaining Unit remain cost-neutral. b) The Company shall provide to SPEA a detailed (per employee) breakdown of performance appraisal results immediately upon their completion. The list shall include employee overall assessment ratings, merit pay amounts, PG grade and current salary. SPEA recognizes its legal obligation to maintain the confidentiality of information related to individuals’ performance ratings/salaries and as such no identifying information shall be publicized in any way. Furthermore, such information shall only be accessible to SPEA’s Officers and staff. Access to such personal information to others shall only be granted with permission of the Company, which shall not be unreasonably withheld. c) At its discretion, the Company may reward individual employees with increases and/or bonuses over and above those established under the merit provisions. Where said increase is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. The Company will provide advance notification to SPEA of any exceptional merit increases and/or discretionary bonuses. d) The assumed distribution of merit is based on the following distribution guideline: Does Not Meet Expectations Needs Development 2% Partially Meets Mostly meets expectations 10% Meets Expectations Successfully meets expectations 63% Exceeds Expectations Consistently exceeds expectations 20% Outstanding Significantly exceeds expectations 5% The above guideline is an estimation only and does not presuppose a predetermined performance distribution. The percentage of Bargaining Unit members in the “Does not Meet ExpectationsNeeds Development” and “Partially Mostly Meets Expectations” categories are maximum percentages for each specific year. e) Salaries shall be administered within each grade on a merit basis. Salaries of employees shall be reviewed once per year and shall be increased, if appropriate, with changes effective as specified herein. Where the increase that would be awarded is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. f) Merit increases for employees shall be determined by their position on the merit grid. An employee’s position on the grid shall be determined by the following criteria: • Performance rating as determined by their annual performance review as per Article 18; • The PG classification of the employee.; g) The decision to award an employee a merit increase less than the merit grid as per Article 20.02 (a) is at the discretion of the Company but shall be subject to the following: i) Merit shall not be withheld because the employees have been assigned work normally done by employees at a lower PG level unless the employees assigned such work have demonstrated inability to perform at the grade level in which they are classified; iih) For employees Employees on approved job-related leave without pay, or recalled after lay-off, merit shall be credited with scale adjustments, but not merit. Merit pay will be prorated to cover the portion of the year during which the employee worked. hi) Employees will receive full merit pay on maternity/parental leave regardless of when it falls. If the leave spans a significant portion of the year (or the entire year) such that a performance assessment is not feasible, the merit pay will be based on a rating of “3”. If an employee takes a personal leave before or after their maternity/parental leave, merit pay which takes effect on the following March January 1st will be prorated. For example, if someone is absent for six months in a year on personal leave, their subsequent March st January 1st merit increase will be prorated to fifty percent (50%). i) Merit increases shall be based on the performance rating within the salary grade the employee was in at the end of the performance year. j) Performance rating is based on the employee’s job performance in the salary grade for which the employee spent >50% of their performance year.

Merit. a) In each year, an employee’s merit pay is based on their performance review and shall be awarded to all employees who achieve a "Meets Expectations” performance rating or above in their performance review. Merit pay increase shall be based on the table below. PG1 SK 0.00% 0.00% 4.504.000% 4.800% 6.000% L1 0.00% 0.00% 4.500% 6.75% 11.25% PG2 L2 0.00% 0.00% 3.00% 4.50% 7.50% PG3 L3 0.00% 0.00% 2.00% 3.00% 5.005.0% PG4 L4 0.00% 0.00% 1.00% 1.50% 2.00% PG5 L5 0.00% 0.00% 0.80% 1.20% 2.00% PG6 L6 0.00% 0.00% 0.60% 0.90% 1.50% This table is intended to provide an overall expenditure on merit increases for the Bargaining Unit as a whole of one and one-half percent (1.5%). In the event that the demographics of the Bargaining Unit, combined with the actual distribution of performance ratings, results in an expenditure that is less than one point three percent (1.3%) or more than one point seven percent (1.7%), then the table shall be renormalized such that the overall expenditure falls within this range. The Company and SPEA have agreed to a joint committee to review and revise the merit grid. The above table will apply to 2017 merit increases but may be revised thereafter with by agreement between SPEA and the Company, provided that the overall expenditure of merit increases for the Bargaining Unit remain cost-remains cost- neutral. b) The Company shall provide to SPEA a detailed (per employee) breakdown of performance appraisal results immediately upon their completion. The list shall include employee overall assessment ratings, merit pay amounts, PG salary grade and current salary. SPEA recognizes its legal obligation to maintain the confidentiality of information related to individuals’ performance ratings/salaries and as such no identifying information shall be publicized in any way. Furthermore, such information shall only be accessible to SPEA’s Officers and staff. Access to such personal information to others shall only be granted with permission of the Company, which shall not be unreasonably withheld. c) At its discretion, the Company may reward individual employees with increases and/or bonuses over and above those established under the merit provisions. Where said increase is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. The Company will provide advance notification to SPEA of any exceptional merit increases and/or discretionary bonuses. d) The assumed distribution of merit is based on the following distribution guideline: Does Not Meet Expectations 2% Partially Meets expectations Expectations 10% Meets Expectations 63% Exceeds Expectations expectations 20% Outstanding 5% The above guideline is an estimation only and does not presuppose a predetermined performance distribution. The percentage of Bargaining Unit members in the “Does not Not Meet Expectations” and “Partially Meets Expectations” categories are maximum percentages for each specific year. e) Salaries shall be administered within each grade on a merit basis. Salaries of employees shall be reviewed once per year and shall be increased, if appropriate, with changes effective as specified herein. Where the increase that would be awarded is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. f) Merit increases for employees shall be determined by their position on the merit grid. An employee’s position on the grid shall be determined by the following criteria: • Performance rating as determined by their annual performance review as per Article 18; • The PG salary classification of the employee. g) The decision to award an employee a merit increase less than the merit grid as per Article 20.02 (a) is at the discretion of the Company but shall be subject to the following: i) Merit shall not be withheld because the employees have been assigned work normally done by employees at a lower PG level unless the employees assigned such work have demonstrated inability to perform at the grade level in which they are classified; ii) For employees on approved leave without pay, or recalled after lay-off, merit pay will be prorated to cover the portion of the year during which the employee worked. h) Employees will receive full merit pay on maternity/parental leave regardless of when it falls. If the leave spans a significant portion of the year (or the entire year) such that a performance assessment is not feasible, the merit pay will be based on a rating of “3”. If an employee takes a personal leave before or after their maternity/parental leave, merit pay which takes effect on the following March 1st will be prorated. For example, if someone is absent for six months in a year on personal leave, their subsequent March st 1st merit increase will be prorated to fifty percent (50%). i) Merit increases shall be based on the performance rating within the salary grade the employee was in at the end of the performance year. j) Performance rating is based on the employee’s job performance in the salary grade for which the employee spent >50% of their performance year.

Merit. (a) In each year, an employee’s merit pay is based on their performance review and shall be awarded to all employees who achieve a "Meets Expectations” performance rating or above in their performance review. Merit pay increase shall be based on the table below. PG1 : SK 0.00% 0.00% 4.504.000% 4.800% 6.000% L1 0.00% 0.00% 4.500% 6.75% 11.25% PG2 L2 0.00% 0.00% 3.00% 4.50% 7.50% PG3 L3 0.00% 0.00% 2.00% 3.00% 5.005.0% PG4 L4 0.00% 0.00% 1.00% 1.50% 2.00% PG5 L5 0.00% 0.00% 0.80% 1.20% 2.00% PG6 L6 0.00% 0.00% 0.60% 0.90% 1.50% This table is intended to provide an overall expenditure on merit increases for the Bargaining Unit as a whole of one and one-half percent (1.5%). In the event that the demographics of the Bargaining Unit, combined with the actual distribution of performance ratings, results in an expenditure that is less than one point three percent (1.3%) or more than one point seven percent (1.7%), then the table shall be renormalized such that the overall expenditure falls within this range. The Company and SPEA have agreed to a joint committee Joint Committee to review and revise the merit grid. The above table will apply to 2017 merit increases but may be revised thereafter with agreement between SPEA and the Company, provided that the overall expenditure of merit increases for the Bargaining Unit remain cost-neutral. (b) The Company shall provide to SPEA a detailed (per employee) breakdown of performance appraisal results immediately upon their completion. The list shall include employee overall assessment ratings, merit pay amounts, PG L grade and current salary. SPEA recognizes its legal obligation to maintain the confidentiality of information related to individuals’ performance ratings/salaries and as such no identifying information shall be publicized in any way. Furthermore, such information shall only be accessible to SPEA’s Officers and staff. Access to such personal information to others shall only be granted with permission of the Company, which shall not be unreasonably withheld. (c) At its discretion, the Company may reward individual employees with increases and/or bonuses over and above those established under the merit provisions. Where said increase is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. The Company will provide advance notification to SPEA of any exceptional merit increases and/or discretionary bonuses. (d) The assumed distribution of merit is based on the following distribution guideline: Does Not Meet Expectations 2% Partially Meets expectations 10% Meets Expectations 63% Exceeds Expectations 20% Outstanding 5% The above guideline is an estimation only and does not presuppose a predetermined performance distribution. The percentage of Bargaining Unit members in the “Does not Not Meet Expectations” and “Partially Meets Expectations” categories are maximum percentages for each specific year. (e) Salaries shall be administered within each grade on a merit basis. Salaries of employees shall be reviewed once per year and shall be increased, if appropriate, with changes effective as specified herein. Where the increase that would be awarded is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. (f) Merit increases for employees shall be determined by their position on the merit grid. An employee’s position on the grid shall be determined by the following criteria: • Performance rating as determined by their annual performance review as per Article 18; • The PG L classification of the employee. (g) The decision to award an employee a merit increase less than the merit grid as per Article 20.02 (a) is 0(a)is at the discretion of the Company but shall be subject to the following: (i) Merit shall not be withheld because the employees have been assigned work normally done by employees at a lower PG L level unless the employees assigned such work have demonstrated inability to perform at the grade level in which they are classified; (ii) For employees on approved leave without pay, or recalled after lay-lay- off, merit pay will be prorated to cover the portion of the year during which the employee worked. (h) Employees will receive full merit pay on maternity/parental leave regardless of when it falls. If the leave spans a significant portion of the year (or the entire year) such that a performance assessment is not feasible, the merit pay will be based on a rating of “3”. If an employee takes a personal leave before or after their maternity/parental leave, merit pay which takes effect on the following March 1st will be prorated. For example, if someone is absent for six months in a year on personal leave, their subsequent March st 1st merit increase will be prorated to fifty percent (50%). For clarity, the performance year runs from January 1st to December 31st and is outlined in Article 18. (i) Merit increases shall be based on the performance rating within the salary grade the employee was in at the end of the performance year. (j) Performance rating is based on the employee’s job performance in the salary grade for which the employee spent >50% of their performance year.

Merit. (a) In each year, an employee’s merit pay is based on their performance review and shall be awarded to all employees who achieve a "Meets Expectations” performance rating or above in their performance review. Merit pay increase shall be based on the table below. PG1 : SK 0.00% 0.00% 4.504.000% 4.800% 6.000% L1 0.00% 0.00% 4.500% 6.75% 11.25% PG2 L2 0.00% 0.00% 3.00% 4.50% 7.50% PG3 L3 0.00% 0.00% 2.00% 3.00% 5.005.0% PG4 L4 0.00% 0.00% 1.00% 1.50% 2.00% PG5 L5 0.00% 0.00% 0.80% 1.20% 2.00% PG6 L6 0.00% 0.00% 0.60% 0.90% 1.50% This table is intended to provide an overall expenditure on merit increases for the Bargaining Unit as a whole of one and one-half percent (1.5%). In the event that the demographics of the Bargaining Unit, combined with the actual distribution of performance ratings, results in an expenditure that is less than one point three percent (1.3%) or more than one point seven percent (1.7%), then the table shall be renormalized such that the overall expenditure falls within this range. The Company and SPEA have agreed to a joint committee Joint Committee to review and revise the merit grid. The above table will apply to 2017 merit increases but may be revised thereafter with agreement between SPEA and the Company, provided that the overall expenditure of merit increases for the Bargaining Unit remain cost-neutral. (b) The Company shall provide to SPEA a detailed (per employee) breakdown of performance appraisal results immediately upon their completion. The list shall include employee overall assessment ratings, merit pay amounts, PG L grade and current salary. SPEA recognizes its legal obligation to maintain the confidentiality of information related to individuals’ performance ratings/salaries and as such no identifying information shall be publicized in any way. Furthermore, such information shall only be accessible to SPEA’s Officers and staff. Access to such personal information to others shall only be granted with permission of the Company, which shall not be unreasonably withheld. (c) At its discretion, the Company may reward individual employees with increases and/or bonuses over and above those established under the merit provisions. Where said increase is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. The Company will provide advance notification to SPEA of any exceptional merit increases and/or discretionary bonuses. d) The assumed distribution of merit is based on the following distribution guideline: Does Not Meet Expectations 2% Partially Meets expectations 10% Meets Expectations 63% Exceeds Expectations 20% Outstanding 5% The above guideline is an estimation only and does not presuppose a predetermined performance distribution. The percentage of Bargaining Unit members in the “Does not Meet Expectations” and “Partially Meets Expectations” categories are maximum percentages for each specific year. e) Salaries shall be administered within each grade on a merit basis. Salaries of employees shall be reviewed once per year and shall be increased, if appropriate, with changes effective as specified herein. Where the increase that would be awarded is restricted by the top of a range and promotion is not warranted, the employee’s salary shall be increased to the top of the range and the balance paid as a lump sum to the individual. f) Merit increases for employees shall be determined by their position on the merit grid. An employee’s position on the grid shall be determined by the following criteria: • Performance rating as determined by their annual performance review as per Article 18; • The PG classification of the employee. g) The decision to award an employee a merit increase less than the merit grid as per Article 20.02 (a) is at the discretion of the Company but shall be subject to the following: i) Merit shall not be withheld because the employees have been assigned work normally done by employees at a lower PG level unless the employees assigned such work have demonstrated inability to perform at the grade level in which they are classified; ii) For employees on approved leave without pay, or recalled after lay-off, merit pay will be prorated to cover the portion of the year during which the employee worked. h) Employees will receive full merit pay on maternity/parental leave regardless of when it falls. If the leave spans a significant portion of the year (or the entire year) such that a performance assessment is not feasible, the merit pay will be based on a rating of “3”. If an employee takes a personal leave before or after their maternity/parental leave, merit pay which takes effect on the following March 1st will be prorated. For example, if someone is absent for six months in a year on personal leave, their subsequent March st merit increase will be prorated to fifty percent (50%). i) Merit increases shall be based on the performance rating within the salary grade the employee was in at the end of the performance year. j) Performance rating is based on the employee’s job performance in the salary grade for which the employee spent >50% of their performance year.the