Ok lets do the math...
The base figures I am going to use are for a B3 C3 pay scale at step 9 going to step 10
Step 9 pay is $32.16 per hour. Step 10 pay is $33.71. A full time employee is going to work 40 hours a week 52 weeks a year for a total of 2080 per year, are we in agreement?
View attachment 180766
October 2017 this individual became step 9 at 32.16, April 2018 became step 10 at $33.71, will not see a pay action until October 2019.
$32.16 X 1040 hours = $33,446 that is gross pay October 2017 to April 2018
$33.71 X 1040 hours = $35,058 that is gross pay April 2018 to October 2018
$33.71 X 2080 hours = $70,116 that is gross pay October 2018 to October 2019
Total pay for 24 month period $138,620
Now lets see what would have happened if the pay action had been a normal step increase along with the historical 3% bump that top of range has been seeing for the past 6+ years. Step 10 would go from $33.71 to $34.72
$32.16 X 2080 hours = $66,892 that is gross pay at step 9 October 2017 to October 2018
$34.72 X 2080 hours = $72,217 That is gross pay at step 10 October 2018 to October 2019
Total pay for 24 month period $139,109
The difference is $489 had we waited and got our "normal" pay action we would have received $489 more in our gross pay. This six month early pay action cost us real money.
The company sold us on this is such a great thing, the company is getting this HUGE, GREAT, tax break and we are passing it on to you guys in the form of an early pay raise. It's kind of like seeing this item on Amazon that looks great and amazing, but when you get it home and you open it up, you realize that it's just a poor Chinese knockoff of the real thing.
This is a great move by the company...they get great PR for giving out a pay raise 6 months early, and they get to save money by paying us less in the long run, and by not raising the top of range they are also saving money down the road.
Why did the company do this? The economy has been improving for the past 7 years, our district is doing great, lots and lots of volume both inbound and outbound.
I can only think of a couple of reasons why the company shorted us on this pay action, either the company see's an economic slow down hitting us hard in 2 years, or the company is in financial distress.
Anyone care to double check my math?