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ARTICLE IV 4.0 SALARIES 4.1 Basic Compensation Plan There is an established basic compensation plan for all part-time civil service personnel who are now employed or will in the future be employed in any of the designated classifications of employment represented by the Union as listed in this MOU and/or its exhibits. 4.2 Salary Schedule A. The basic salary and wage schedule, as periodically updated and published by the City, provides various salary rate ranges, each comprised of six (6) steps or rates of pay. The respective rate ranges are identified by a three (3) digit number The steps within each range are identified by the letters "AA" and "A" through "E" inclusive, with Step "AA" being the lowest step in the range. Step "AA" is the normal beginning pay rate. Step "A" is an automatic step increase after the completion of one thousand and forty (1040) hours in the next lower step. It is also an optional hiring rate. Steps "B" and "C" are an automatic step increase after the completion of two thousand and eighty (2080) hours in the next lower step. They are also an optional hiring rate. Step "D" is an automatic step increase after the completion of two thousand and eighty (2080) hours in the next lower step. It is the maximum hiring rate. Step "E" is a performance based step increase which an employee may be eligible to receive after the completion of three thousand, one hundred and twenty (3120 hours in Step "D". Specific provisions governing advancement within salary rate ranges for part-time civil service employees are set forth in Section 4.8 of this MOU. B. During the term of this MOU, it is the City's intent to eliminate the salary matrix and create a salary schedule. The parties acknowledge and agree that elimination of the salary matrix and implementation of the salary schedule is a meet and confer 2019-2022 MOU City of Santa Ana & SEIU Part -Time Civil Service Employees Unit it 20C-14 0 ov