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How do wage adjustments work?

According to the Tripartite Guidelines on re-employment, wage adjustments should take into account:

  • The value of the job.
  • The employee's experience and competency
  • The midpoint salary range of the job.
  • Any seniority-based wage components.
  • Any wage reductions made when the employee turned 60.

The salary range for an employee's current job is $1,500 to $2,500. An employee approaching retirement age is at the top of the salary range.

The employer can offer re-employment at the midpoint of the range, $2,000.

These principles can be adapted depending on the circumstances. Employers should consult with employees and unions (if applicable) to reach fair and mutually agreeable terms.