→ and the amount added to the existing salary or equivalent rate and taken into consideration in assessing the amount of War Bonus, if any, to be retained.

3.—Residue of War Bonus Remaining after Application of the New Scales.

For every advance in salary or equivalent rate subsequent to the introduction of the new scales, 50 per cent. of such advance shall be deducted from the remaining War Bonus, if any, independent of the fall in the cost of living.

In addition to this, the Floating War Bonus to be subject to fluctuation in accordance with the cost of living, as shown in the tables prepared by the Ministry of Labour. Taking the cost of living as 125 per cent. above normal, a rise or fall of a full five points to carry an increase or a decrease, as the case may be, of £5 per annum (or 2s. per week) Floating Bonus. Provided, however, that no reduction in any man’s Floating Bonus shall take place as the result of a fall in the cost of living before September 30th, 1920, after which date any necessary adjustment will be made.

The War Bonus adjustments, according to the cost of living, to take place at the end of March, June, September and December, and to be based on the figures published in the months named by the Ministry of Labour.

4.—Payment of Income Tax.

The arrangements hitherto existing on certain Railways for the Company to pay Income Tax chargeable to members of the Supervisory Staff will, under the re-classification, be discontinued.

5.—Hours of Duty.

Where the hours of duty of men in these grades can be arranged beforehand, the ordinary working hours of duty shall not exceed 48 hours per week, it being understood that where the working hours at August 1st, 1919, were less than 48 hours per week, they shall not be increased. If the men desire it and it can be conveniently arranged, the 48-hour week may be made up of five long and one short turns of duty, with an, over all total of 48 hours. Where the work is continuous throughout the 24 hours, and the 24 hours are covered by three turns of duty, the Supervisory men on these turns of duty shall be rostered on eight-hour turns.

In cases where men of these grades work irregular hours and their duties cannot therefore be rostered, it is not expected that they shall, in the ordinary way, work more than 48 hours per week, the hours from day to day being arranged according to the exigencies of the work of their respective positions.