COLA raise

Discussion in 'UPS Discussions' started by bscott85, Mar 27, 2009.

  1. bscott85

    bscott85 New Member

    The amount of the cost-of-living allowance shall be determined as provided below on the basis of the
    "Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W (Revised Series using
    1982-1984 Expenditure Patterns), All Items (1982-84= 100), published by the Bureau of Labor
    Statistics, U.S. Department of Labor" and referred to herein as the "Index".
    Effective August 1, 2009, and every August 1 thereafter during the life of the Agreement, a cost-
    of-living allowance will be calculated on the basis of the difference between the Index for May 2009 (published June 2009) and every May thereafter, and the base Index for May 2008
    (published June 2008) and every May thereafter, as follows:

    For every 0.2 point increase in the Index, over and above the base (prior year’s) Index plus 3.0% there
    will be a 1 cent increase in the hourly wage rates payable on August 1, 2009, and every August 1
    thereafter.
    These increases shall only be payable if they equal five ($.05) cents in a year.

    For every 0.2 point increase in the Index, over and above the base (prior year’s) Index plus 3.0% there
    will be a 1 cent increase in the hourly wage rates payable on August 1, 2009, and every August 1
    thereafter.


    im pt in the hub and finished my wage progression(now on the bi-annual raise structure) and im wondering if im reading this right.... a 0.2 increase in this index yields a 1 cent raise + 3%? does that mean 3% divided by .2 means u automatically get 15 cents cola raise every year + 1 penny for every .02 index rise? (which would be good)

    or does it mean that the increase has to be more than 3% before we get the 1 penny for every .2 increase(which would not be good)

    or is it just 1 penny for every .2 increase(+3% of that total, which would be like fractions of penny?? lol)

    i dont think im understanding this

    what were yalls cola raise like last year?(nevermind we didnt get one lol just found this: http://www.tdu.org/node/2078

    i found this
    http://www.ssa.gov/OACT/STATS/cpiw.html

    and its not a good look that this year is the 1st year ever thats started off with a DECREASE
     
    Last edited: Mar 27, 2009
  2. Sleeve_meet_Heart

    Sleeve_meet_Heart making the unreadable unreadabler

    Take the difference between the May of 2008 and 2009 CPI , and then add 3% to it. Aug 1st 2009 if it's 1.0 higher in that one year than the value you arrived at, you get 5 cents. The cola raise must be at least 5 cents. That has been my interpetation anyway.

    To be perfectly honest, I wouldn't mind a few more ticks down in the means on that CPI index , if not a nosedive. A sudden drop late this summer into winter, and then rise right in time for May 1st 2010 would be ideal for the greedy Teamster. $:biting:
     
  3. Sleeve_meet_Heart

    Sleeve_meet_Heart making the unreadable unreadabler

    FOR EX: (rounding off numbers and I hope I'm right here, correct me if I'm wrong explaining this please!)

    May 2005 : 190. CPI
    May 2006: 198 CPI

    190 x 3% is roughly 5 points = 195

    So the difference between 198 and 195 is 3 points.

    1 point = 5 cents (.2 = 1 cent)

    Aug 2006 cola raise = 15 cents