Performance Appraisals & Annual Pay Increases Policy

Revised: March 5, 2013

Overview

To deliver quality service to our customers, it is important that all employees meet the expectations set for them by their supervisor. The performance appraisal process is the regularly scheduled, formal means for supervisors to set expectations for the coming year and provide feedback on the employee’s performance and safety record over the last year.

Core Requirements

·  Each employee should receive formal feedback (performance appraisals) from their supervisor on an annual basis. This assessment of their performance affects their eligibility for pay increases.

·  ABX Air believes that employees whose performance needs improvement should receive an additional period of coaching and time to improve. During this time, no pay increase will be given.

Employee Role & Responsibility

·  Do your best to understand and meet the expectations and requirements of your job.

·  If you have questions about your performance or expectations, discuss them with their supervisor.

Management Role & Responsibility

·  Conduct performance appraisals promptly and conscientiously on company-approved forms for all of your employees.

·  Ensure that all of your employees understand their jobs, what is expected of them, and how well they are meeting those expectations. Job descriptions should be reviewed and updated annually to accurately reflect changes to the position.

·  There should be no surprises at performance appraisal time. Performance appraisals are not a substitute for regular, open communication.

·  Complete a Record Change Form to initiate the salary change process. The Performance Appraisal Form and the Record Change Form must be signed by the immediate supervisor and their supervisor. Send completed and signed forms to Human Resources for processing.

“Must Improve”, “Does Not Consistently Meet Expectations”, “Fails To Meet Expectations”, or “Unsatisfactory” Ratings

Management giving an overall rating of “Must Improve” or “Does Not Consistently Meet Expectations” must review the performance appraisal with Human Resources prior to sharing it with the employee.

The performance of an employee receiving an overall rating of “Must Improve” or “Does Not Consistently Meet Expectations” must be re-evaluated within 90 days. The employee will receive no pay increase until they receive an overall rating of “Good”, “Meets Expectations”, or better on a subsequent performance review. The effective date of a pay increase, if any, will be the date of the performance review at which the employee showed improvement; the increase will not be made retroactive to the original review date. During the 90-day period of re-evaluation, the employee will receive additional feedback and specific expectations to meet. If the employee receives another overall rating of "Must Improve”, “Does Not Consistently Meet Expectations”, or “Fails To Meet Expectations” on the 90-day review, his or her employment will be subject to termination.

Revision History

March 5, 2013

October 2010