Please turn the following into a written proposal

Article 9 - Wages 9.01

• Wage Structure

The management proposes the introduction of a wage structure across job levels within CE. Job levels 1 to 6 (Group 1) are considered low-income earners, and we propose a wage increment to impact these job levels only, thereby reducing the impact of wage increment in the income statement of CE for 2020.

• Cost of Living Adjustment (C.O.L.A)

The management proposes the introduction of a C.O.L.A as a form of wage increment to cushion the effect of inflation on wages of employees for Group 1 job levels for year 1 only. We propose a wage increment based on the rate of inflation in the economy (CPI). CE will not pay an arbitrary general wage increase (GWI) to staff without generating enough revenue to cover it due to the present state of the economy. We are proposing C.O.L.A. of 0.3% plus 1% for all employees in Group 1 only for Year 1.

• Guaranteed Wage Increase

The management proposes the introduction of a guaranteed 1% GWI in year 2 for all job levels. The impact of this increment on financials for year 2 is a 1% increase in labor costs. This can be accommodated based on a projection that makes the amount only 5.07% of net income projected and 31% of the projected increase in net income in year 2.

• Performance-based Wage Increase

The management proposes the introduction of an additional 2% GWI in year two, which is based on CE's business performance targets for year 2. This payment will only be made if CE's increase in net income in year 2 is greater than or equal to 32%. If this performance is not attained, this GWI will not be given to employees.

• Lump-sum Payment

The management proposes the introduction of a lump-sum payment. Effective the second pay period after the ratification of the collective agreement, each active employee with at least 1-year seniority shall receive a $1,500 lump-sum payment.