What happens if there are further market adjustments agreed to or awarded?
The results of the study will determine whether additional market adjustments are appropriate and for what segments of the LP population. For example, the study may result in the parties agreeing to, or an arbitrator awarding, the LP1s a 0% market adjustment, LP2s a 5% market adjustment, and LP3 to LP5s a 2% market adjustment. Since Toronto rates of pay are being evaluated separately from Non-Toronto rates, it is also possible that the study supports market adjustments for Toronto but not the rest of the country, or vice versa. In this example, the 0%, 5% and 2% adjustments respectively would be made to rates of pay within 180 days of the agreement or award.
In addition to prospective rates of pay, there may be retroactive payments, to May, 2018. However, because of limitations created by Phoenix, retroactive payments cannot be tailored by level. Rather, the parties (or the arbitrator) will have to establish a single identical percentage in lieu of retro pay that will have to be afforded to all LPs equally regardless of level. For example, on the same hypothetical as above, where the LP1s are entitled to a 0% market adjustment and LP2s are entitled to a 5% market adjustment, and LP3s to LPs are entitled to a 2% market adjustment, all 5 levels must nevertheless get the same % of retro pay. One option the parties (or the arbitrator) could consider would be a weighted average. Other options may be available. While this may create some perceived unfairness, the alternative is no retroactive adjustments at all.