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ARTICLE rV <br />4.0 SALARIES <br />4.1 Basic Compensation Plan <br />There is an established basic compensation plan for all full-time personnel who are now <br />employed or will in the future be employed in any of the designated classifications of <br />employment represented by the Union as listed in this MOU and/or its exhibits. <br />4.2 Salary Schedule <br />A. The basic salary and wage schedule, as periodically updated and published by the <br />City, provides various salary rate ranges, each comprised of seven (7) steps or rates <br />of pay. <br />The respective rate ranges are identified by a three (3) digit number. <br />The steps within each range are identified by the letters "AAA", "AA", and "A" <br />through "E" inclusive, with Step "AAA" being the lowest step in the range. <br />Step "AAA" is the normal beginning pay rate. <br />Step "AA" is an automatic increase after the completion of six (6) months of service <br />in Step "AAA". <br />Steps "A" through "D" are an automatic step increase after the completion of twelve <br />(12) months of service. <br />Step "E" is a performance based step increase which an employee may be eligible <br />to receive after the completion of twelve (12) months of service in Step "D". <br />The assignment of classifications to salary rate ranges is listed in the City's basic <br />salary and wage schedule. <br />B. During the term of this MOU, it is the City's intent to eliminate the salary matrix <br />and create a salary schedule. The parties acknowledge and agree that elimination <br />of the salary matrix and implementation of the salary schedule is a meet and confer <br />issue. Once the City is ready to move forward with elimination of the salary matrix <br />and creation of the salary schedule, it will provide its proposal to the Union and the <br />Parties agree to promptly meet and confer on the issue. No changes will be made <br />until the negotiations process has been completed. The parties acknowledge that <br />such a change will require modification to language in several provisions of this <br />MOU. <br />2014-2022 MOU City of Santa Ana & SEIU Full -Time Employees Unit Page 16 <br />\\vX <br />11�1U <br />