The CoLA is an annual wage increase to accommodate for increases to cost of living due to forecasted rate(s) of inflation. The rate would be calculated using the Consumer Price Index for the respective year. Recommend using BMO’s CPI as they are our primary lender. Rates could potentially vary from province to province. Choosing an effective date of July 1st (or the first pay period of July equal to pay period #13).
It will hopefully alleviate the burden put on the organization by the Salary Advice Process. Individuals who have went through the salary advice process within one year of the agreed upon adjustment date would be excluded until the following year. Provide CoLA data during the salary advice process to indicate the existing increases, or the future impact for clarity and awareness of the participating parties and implement CoLA into the Salary Advice Process (as a consideration).
The CoLA would be exclusive to payroll employees only as sub-contractors or consultants have the liberty to openly negotiate their own rates/pay scales. New hires would be eligible on July 1st following the first anniversary of their employment. If in the event there is period of deflation there would be no CoLA allowance provided on the agreed upon date (stipulated above)