EP 1180-1-1
1 Aug 01
9-9. CBA Wage Determination Revisions. The effective dates of CBA wage and benefit increases do
not always coincide with the start of a contract period. In such cases, the contractor is only reimbursed
for that portion of the contract period affected by the increase. For example, if an annual option period
began 1 October, and CBA increases became effective 1 January of the following year, the increased
wages are effective for nine months of the option period. The adjustment is limited to those nine months.
DOL often issues "short form" WDs for option periods. This type of CBA WD merely references by
name the CBA between the incumbent contractor and its unions. There are no specific wage or fringe
benefit amounts listed. Without the specific rates listed on the WD, the CO must determine the allowable
adjustment by reviewing the CBA provisions. The adjustment is limited to the allowable wage rates and
monetary fringe benefits as noted in paragraphs 9-7 and 9-8.
9-10. CBA Provisions Subject to Adjustments. Wage and benefit provisions found in a CBA (or WD
based on a CBA) are adjusted in the same manner as area type WD adjustments. However, CBA
provisions are often more varied and complex.
a. Shift Differentials. This pay is often required by CBAs and is specified as an additional wage rate
for hours worked at different time schedules (example: an additional $.05 per hour for the shifts
worked between 4:00 pm and midnight, and $.08 per hour for the hours worked between midnight
and 8:00 am). These are not considered "overtime" provisions, but additional SCA-required minimum
wage rates. As such, they are covered by SCA and subject to adjustment under the Clause.
b. Vacations. Some CBAs specify an accrual period of less than one year, such as weekly or
monthly. Each week, pay period, or month the employee earns (accrues) the vacation benefit hours.
Price adjustments for increases in vacation benefits should be computed with the same application of
accrual criteria, particularly for adjustments applicable to short term contract extension periods.
Example: If a CBA increased vacation benefits from four hours every two weeks
worked, to five hours every two weeks, the adjustment would be computed on each
employee for each two-week period within the extension. However, if the WD had
required an increase of vacation benefits for one year of service to two weeks for one
year of service, the adjustment for the extension period would be limited to those
employees who would reach their one year anniversary dates within that extension
period.
9-11
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