Common use of Elimination of Positions – Red Circling Clause in Contracts

Elimination of Positions – Red Circling. Where an Employee's position is abolished by the Employer and, in accordance with Article 16, the Employer transfers the Employee affected to another position having a lower maximum rate of pay, the Employee shall continue to receive pay at her/his rate of pay in effect at the time her/his former position was abolished until such time as the maximum rate of pay for her/his new position exceeds her/his rate of pay in effect at the time her/his former position was abolished.