MEMORANDUM OF AGREEMENT

SUPPLEMENTAL INCREASE

FOR EMPLOYEES IN PROGRESSION

After the application of the Cost of Living Adjustment set forth in Section 6.2(b) and the General Wage Increase set forth in Section 6.3(b)(1), employees in progression on September 3, 2008 will receive a supplemental wage increase to their base rate in the amount of $1.00. If, after the $1.00 increase, the employee’s base rate is below the new minimum rate in his or her labor grade, the employee’s base rate will be further increased to the new minimum rate.

The $1.00 increase set forth in the paragraph above will not apply to employees who are less than $1.00 from the maximum rate. Those employees who are less than $1.00 from the maximum rate will receive a base rate increase up to the new maximum rate.