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APPENDIX "A"

PENOLOGICAL FACTOR ALLOWANCE

General

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1. The Penological Factor Allowance (PFA) is used to provide additional compensation to an incumbent of a position who, by reason of duties being performed in a penitentiary, as defined in the Corrections and Conditional Release Act as amended from time to time, assumes additional responsibilities for the custody of inmates other than those exercised by the Correctional Group.

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2. The payment of the allowance for the penological factor is determined by the designated security level of the penitentiary as determined by Correctional Services Canada. For those institutions with more than one (1) designated security level (i.e. multi-level institutions), the PFA shall be determined by the highest security level of the institution.

Application of PFA

3. Penological Factor Allowance shall only be payable to the incumbent of a position on the establishment of, or loaned to, Correctional Staff Colleges, Regional Headquarters, and National Headquarters, when the conditions described in Section 1 above are applicable.

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4. The applicability of PFA to a position and the position's level of PFA entitlement shall be determined by the Employer following consultation with the bargaining agent.

5. Except as prescribed in Section 8 below, an employee shall be entitled to receive PFA for any month in which he/she receives a minimum of ten (10) days' pay in a position to which PFA applies.

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6. Except as provided in Section 7 below, PFA shall be adjusted when the incumbent of a position to which PFA applies, is appointed or assigned duties in another position to which a different level of PFA applies, regardless of whether such appointment or assignment is temporary or permanent, and for each month in which an employee performs duties in more than one (1) position to which PFA applies, the employee shall receive the higher allowance, provided he/she has performed duties for at least ten (10) days as the incumbent of the position to which the higher allowance applies.

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7. When the incumbent of a position to which PFA applies is temporarily assigned to a position to which a different level of PFA, or no PFA applies, and when the employee's basic monthly pay entitlement in the position to which he/she is temporarily assigned, plus PFA, if applicable, would be less than his/her basic monthly pay entitlement plus PFA in his/her regular position, the employee shall receive the PFA applicable to his/her regular position.

8. An employee will be entitled to receive PFA, in accordance with the PFA applicable to his/her regular position:

9. PFA shall not form part of an employee's salary except for the purposes of the following:

Public Service Superannuation Act
Public Service Disability Insurance Plan
Canada Pension Plan
Quebec Pension Plan
Employment Insurance
Government Employees Compensation Act
Flying Accident Compensation Regulations

10. If, in any month, an employee is disabled or dies prior to establishing an entitlement to PFA, the PFA benefits accruing to him/her or his/her estate shall be determined in accordance with the PFA entitlement for the month preceding such disablement or death.

**APPENDIX "B-1"

EL - ELECTRONICS GROUP
ANNUAL RATES OF PAY
(in dollars)

A) Effective September 1, 2004
B) Effective September 1, 2005
C) Effective September 1, 2006
(Arbitral Award - October 6, 2005)

Notes:

1. The weekly, daily and hourly rates of pay shown in Appendices "B-2", "B-3"and "B-4" have been determined from the annual rates shown in Appendix "B-1" and have been rounded to the nearest cent.

Pay Adjustment Administration

2. An employee shall be paid on the relevant effective dates in the A, B, and C scales of rates in Appendix B at the rate of pay which is immediately below the employee's former rate of pay.

Pay Increment Period

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3. The pay increment period for a full-time employee is 52 weeks. A part-time employee shall be eligible to receive a pay increment after one thousand nine hundred and fifty (1950) hours paid at the straight-time rate.

4. Where the rates of pay set forth in Appendix "B" have an effective date prior to the date of signing of this Agreement, the following shall apply:

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(a) "retroactive period" for the purpose of sub-clauses (b) to (e) means the period from the effective date of the revision up to and including the day prior to the date of signing of the Agreement or when an arbitral award is rendered therefor;

(b) a retroactive upward revision in rates of pay shall apply to employees, former employees or in the case of death, the estates of former employees who were employees in the bargaining unit during the retroactive period;

(c) for initial appointments from outside the Public Service which occurred during the retroactive period, the rate of pay shall be determined in accordance with clause 54.03(c) of the Agreement;

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(d) for promotions, demotions, deployments, transfers or acting situations effective during the retroactive period, the rate of pay shall be recalculated, in accordance with clauses 54.03, 54.04, 54.05 and 54.06 of the Agreement, using the revised rates of pay. If the recalculated rate of pay is less than the rate of pay the employee was previously receiving, the revised rate of pay shall be the rate which is nearest to but not less than the rate of pay being received prior to the revision. However, where the recalculated rate is at a lower step in the range, the new rate shall be the rate of pay shown immediately below the rate of pay being received prior to the revision;

(e) no payment or no notification shall be made pursuant to Note 4 for one dollar ($1) or less.

5. The amount shown hereunder represents 4 hours' pay of the EL-4 maximum hourly rate rounded up to the nearest five cents (5 cents).

(a) September 1, 2004 - $118.75

(b) September 1, 2005 - $121.60

(c) September 1, 2006 - $124.60

6. The amount shown hereunder represents 3 hours' pay of the EL-5 maximum hourly rate rounded up to the nearest five cents (5 cents).

(a) September 1, 2004 - $98.80

(b) September 1, 2005 - $101.15

(c) September 1, 2006 - $103.65

7. The amount shown hereunder represents 3 hours' pay of the EL-5 maximum hourly rate plus five dollars ($5.00) rounded up to the nearest five cents (5 cents).

(a) September 1, 2004 - $103.80

(b) September 1, 2005 - $106.15

(c) September 1, 2006 - $108.65

8. The amount shown hereunder represents 3 hours' pay of the EL-5 maximum hourly rate plus ten dollars ($10.00) rounded up to the nearest five cents (5 cents).

(a) September 1, 2004 - $108.80

(b) September 1, 2005 - $111.15

(c) September 1, 2006 - $113.65

9. The amount shown hereunder represents 11.25 times the EL-4 maximum hourly rate rounded up to the nearest ten cents (10 cents).

(a) September 1, 2004 - $333.90

1/2 day - $167.00

(b) September 1, 2005 - $341.90

1/2 day - $171.00

(c) September 1, 2006 - $350.50

1/2 day - $175.30

**APPENDIX "B-2"

EL - ELECTRONICS GROUP
WEEKLY RATES OF PAY
(in dollars)

A) Effective September 1, 2004
B) Effective September 1, 2005
C) Effective September 1, 2006
(Arbitral Award - October 6, 2005)

**APPENDIX "B-3"

EL - ELECTRONICS GROUP
DAILY RATES OF PAY
(in dollars)

A) Effective September 1, 2004
B) Effective September 1, 2005
C) Effective September 1, 2006
(Arbitral Award - October 6, 2005)

**APPENDIX "B-4"

EL - ELECTRONICS GROUP
HOURLY RATES OF PAY
(in dollars)

A) Effective September 1, 2004
B) Effective September 1, 2005
C) Effective September 1, 2006
(Arbitral Award - October 6, 2005)