COLA is a 33 cent adjustment to top scale

[Non liberal]

I’m going to walk through the contract and math so that we’re all able to be on the same page.

The following two paragraphs are the determining factors for the cost of living adjustment (COLA):
Summarizing Article 33, paragraphs 2, 3, and 4
‘COLA is based on CPI-W, published by the BLS.
COLA is calculated based on the difference between the index from May of the previous year to May of the current year.
For every 0.2 point increase IN THE INDEX above the previous index plus 3%, there is a 1 cent raise in the top scale.’

Historical CPI-W shows that May of 2020, the index was at 249.521.
The second to last paragraph on page 4 of the CPI news release for May, 2021 says
“The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 5.6 percent over the last 12 months to an index level of 263.612 (1982-84=100). For the month, the index rose 0.9 percent prior to seasonal adjustment.

So in order to calculate COLA you take the previous index (CPI20), multiply it by 1.03 to get your baseline 3% increase (referred to as 3%base), find the difference between the current CPI-W (CPI21) and the adjusted 3% increase (3%base), and multiply by 5 because each 0.2 points is one cent so each 1 point is therefore 5 cents. The formula is shown below:
3%base = CPI20 x 1.03
Raise = (CPI21 - 3%base) x 5

Factoring in our numbers:
3%base = 249.521 x 1.03 = 257.007
Raise = (263.612 - 257.007) x 5 = (6.605) x 5 = 33.025

That means that prior to the Union taking their cut, top scale will increase 33 cents. This will probably be at least a 25 cent increase.

As a side note, this post is not making any political judgments or determinations about the causes of inflation nor is it making a stance about the cut that the Union receives; this is simply an attempt to explain the contract and make an exorbitant amount of unnecessary college math courses useful to me.

I’m not sure if this site allows edits, but if it does I will correct the post if anyone points out any mistakes I made.

Well thank you for the math lesson.

I’m going to walk through the contract and math so that we’re all able to be on the same page.

The following two paragraphs are the determining factors for the cost of living adjustment (COLA):
Summarizing Article 33, paragraphs 2, 3, and 4
‘COLA is based on CPI-W, published by the BLS.
COLA is calculated based on the difference between the index from May of the previous year to May of the current year.
For every 0.2 point increase IN THE INDEX above the previous index plus 3%, there is a 1 cent raise in the top scale.’

Historical CPI-W shows that May of 2020, the index was at 249.521.
The second to last paragraph on page 4 of the CPI news release for May, 2021 says
“The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 5.6 percent over the last 12 months to an index level of 263.612 (1982-84=100). For the month, the index rose 0.9 percent prior to seasonal adjustment.

So in order to calculate COLA you take the previous index (CPI20), multiply it by 1.03 to get your baseline 3% increase (referred to as 3%base), find the difference between the current CPI-W (CPI21) and the adjusted 3% increase (3%base), and multiply by 5 because each 0.2 points is one cent so each 1 point is therefore 5 cents. The formula is shown below:
3%base = CPI20 x 1.03
Raise = (CPI21 - 3%base) x 5

Factoring in our numbers:
3%base = 249.521 x 1.03 = 257.007
Raise = (263.612 - 257.007) x 5 = (6.605) x 5 = 33.025

That means that prior to the Union taking their cut, top scale will increase 33 cents. This will probably be at least a 25 cent increase.

As a side note, this post is not making any political judgments or determinations about the causes of inflation nor is it making a stance about the cut that the Union receives; this is simply an attempt to explain the contract and make an exorbitant amount of unnecessary college math courses useful to me.

I’m not sure if this site allows edits, but if it does I will correct the post if anyone points out any mistakes I made.

thanks for the math lesson, I for one will make a political statement. Thanks dems, take a good look at what your country has become ( a shell of what it was just 2 years ago) unfortunately this is the inevitable result of a society electing to employ liberalism. Utter nonsense. hopefully we will not make the same mistake we made in 2020. For the love of god, can we not make that same mistake ever again.

 

[Hadjabear]

Well thank you for the math lesson.

thanks for the math lesson, I for one will make a political statement. Thanks dems, take a good look at what your country has become ( a shell of what it was just 2 years ago) unfortunately this is the inevitable result of a society electing to employ liberalism. Utter nonsense. hopefully we will not make the same mistake we made in 2020. For the love of god, can we not make that same mistake ever again.

You're right! We can't elect the orange haired clown that sparked all this at the start of 2020 again. Who knows how much worse it would be if he had won reelection.

 

[PT Car Washer]

You're right! We can't elect the orange haired clown that sparked all this at the start of 2020 again. Who knows how much worse it would be if he had won reelection.

By now we would just be another member of the Russian Federation.

 

[DriveInDriveOut]

You're right! We can't elect the orange haired clown that sparked all this at the start of 2020 again. Who knows how much worse it would be if he had won reelection.

Sparked all of what?

 

[Non liberal]

By now we would just be another member of the Russian Federation.

Lol, we could only be so lucky.

 

[Non liberal]

You're right! We can't elect the orange haired clown that sparked all this at the start of 2020 again. Who knows how much worse it would be if he had won reelection.

Lol, enjoy your inflation lib. You own it!

 

[Non liberal]

By now we would just be another member of the Russian Federation.

At least they know how to feed their children. Unlike moronic liberals who just can’t get out of the damn way. That’s all Biden had to do was just stay the hell out of the damn way. The trump train economy was steamrolling, and still would be if liberals weren’t trying to crush the only piece of America still existing. (The middle class working man)

 

[Non liberal]

Sparked all of what?

That damn American pride! That’s what. They don’t like our borders, that’s what’s standing in the way of their one world government.

 

[PT Car Washer]

At least they know how to feed their children. Unlike moronic liberals who just can’t get out of the damn way. That’s all Biden had to do was just stay the hell out of the damn way. The trump train economy was steamrolling, and still would be if liberals weren’t trying to crush the only piece of America still existing. (The middle class working man)

Middle class working men and women elected President Biden. Tired of your and trumps lies.

 

[DriveInDriveOut]

Middle class working men and women elected President Biden.

Looks like most of them voted for Trump. I'm not sure what your lies have to do with the COLA though.

The percentage of white working class men voting Democratic increased from 23% in 2016 to 28% in 2020, while among white working class women, support for Democrats increased from 34% to 36%.

 

[Up In Smoke]

All things inflationary aren't necessarily bad. Wages were stuck for nearly a decade, but the competition for employees has seen record wage growth. Energy prices are out of control, but understandable seeing how these companies took huge loses in 2020. The Fed will raise rates and sell off it's bond positions, the market will react and the strong companies will survive. People who live and die on a week by week basis haven't prepared their financial houses very well.

 

[IVE GOTTA PACKAGE 4U]

All things inflationary aren't necessarily bad. Wages were stuck for nearly a decade, but the competition for employees has seen record wage growth. Energy prices are out of control, but understandable seeing how these companies took huge loses in 2020. The Fed will raise rates and sell off it's bond positions, the market will react and the strong companies will survive. People who live and die on a week by week basis haven't prepared their financial houses very well.

The people living on credit will not survive this

 

[Up In Smoke]

The people living on credit will not survive this

Can't save them all.

 

[IVE GOTTA PACKAGE 4U]

Can't save them all.

They need to teach financial courses in school instead of all this liberal crap

 

[Up In Smoke]

They need to teach financial courses in school instead of all this liberal crap

Let's start with the people tasked to run our government. A handful of balanced budgets over the past 2 decades and 30 trillion of debt added in the same time frame is irresponsible.

 

[IVE GOTTA PACKAGE 4U]

Let's start with the people tasked to run our government. A handful of balanced budgets over the past 2 decades and 30 trillion of debt added in the same time frame is irresponsible.

The lower interest rates are disappearing in this debt is really going to stop the economy

 

[...]

You're right! We can't elect the orange haired clown that sparked all this at the start of 2020 again. Who knows how much worse it would be if he had won reelection.

Ornj men bad

 

[Up In Smoke]

The lower interest rates are disappearing in this debt is really going to stop the economy

Let's see the Fed chair raise them to 20% like the 80s. Slash and burn. The companies and people with strong balance sheets will survive.

 

[IVE GOTTA PACKAGE 4U]

Let's see the Fed chair raise them to 20% like the 80s. Slash and burn. The companies and people with strong balance sheets will survive.

What about the everyday people?

 

[Up In Smoke]

What about the everyday people?

I was 13 in 1980 and remember some of the financial arguments my parents got in. We got through it by cutting expenses and doing without. My little brother a I wore hand me downs through most of our middle and high school years. Everyday people can get rid of a lot of expensive gadgets and material things. Everyday people got used to cheap credit and those days are done.