If no settlement is reached as of December 1st the Board will pay interest on retroactive salary increases to employees covered in this agreement. Such interest will be paid on the gross amount of retroactive pay due less the amount of any statutory deduction for Canada Pension, Employment Insurance, and Income Tax with respect to that pay. The interest shall be calculated from the date on which the monies would have been due to the date of actual payment.
Interest shall be computed on the average instructional salary for the aggregate number of teachers, including administrators, employed by the Board and at the average rate, which is paid by the Royal Bank of Canada on non-chequing savings accounts during that period.
Notwithstanding the foregoing method of calculation, the distribution of the accumulated interest to individual employees shall be accomplished via a method mutually acceptable to the Board and the Association. The above payment shall be added to each teacher's annual salary for income tax purposes.