The wage escalator takes effect two rounds after the negotiations. For example, negotiations are scheduled in Round 4, (2012) and they lead to a settlement calling for a $24.00 wage and 5% Annual Raise.
In Round 5 (2013), the wage will be $24.00. In Round 6 (2014), the Annual Raise begins, and the wage will go to $25.20 ($24.00 x 1.05).