It goes by May's inflation numbersWhen would they calculate if we will be getting a cola??? That’s probably why they took the pay back from the part timers…

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- Thread starter DaFatBunny
- Start date

It goes by May's inflation numbersWhen would they calculate if we will be getting a cola??? That’s probably why they took the pay back from the part timers…

Drink American whiskey.Crown Royal for everyone

Last year it was announced in mid-June.When would they calculate if we will be getting a cola??? That’s probably why they took the pay back from the part timers…

I have two of my customers that give me a bottle every year. Damn right I'm going to drink itDrink American whiskey.

I am going to buy a FULL TANK of gas.

WdfdI have two of my customers that give me a bottle every year. Damn right I'm going to drink it

Super unleaded?I am going to buy a FULL TANK of gas.

What will this years be?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 at249.521.

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 of263.612(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.

60 dollarsWhat will this years be?

A food and gas shortageWhat will this years be?

(as I stated elsewhere) COLA is easy to calculate....we just have another month's of inflation to be included in it.What will this years be?

COLA in our contract is determined by May 2022's CPI-W which will be released on June 10th, 2022 @ 8:30 am ET. If you plug in

284.575 (which is April's CPI-W number found here) - 271.52036 (which is May 2021's CPI-W number multiplied by 1.03 as the union only gets COLA when inflation rises above 3%) =13.05464. Now take that number and multiply by $0.05 and you get $0.65 COLA raise with May's inflation adding to it. If inflation remains where it is now then that number could go to $0.75.

So expect a COLA raise between $0.68-$0.75 per hour depending on May's inflation rate.

Which will be eaten away in a year like the last one(as I stated elsewhere) COLA is easy to calculate....we just have another month's of inflation to be included in it.

COLA in our contract is determined by May 2022's CPI-W which will be released on June 10th, 2022 @ 8:30 am ET. If you plug inApril 2022's CPI-W(which was released on 5/11/22) the estimate is:instead

284.575 (which is April's CPI-W number found here) - 271.52036 (which is May 2021's CPI-W number multiplied by 1.03 as the union only gets COLA when inflation rises above 3%) =13.05464. Now take that number and multiply by $0.05 and you get $0.65 COLA raise with May's inflation adding to it. If inflation remains where it is now then that number could go to $0.75.

So expect a COLA raise between $0.68-$0.75 per hour depending on May's inflation rate.

Which will be eaten away in a year like the last one

Some UAW contracts (John Deere's latest one for example) adjust every 3 months when they include these 3% inflators to offset the timing penalty of COLA.

COLA is bad. Wages go up---but they go up slower than inflation. Purchasing power goes down.

If inflation holds up that means approx $0.30 of our $1.00 GWI will go towards making up for that shortfall.

Faster than thatas the union negotiated allowing 3% inflation before they get an increase. Everyone is losing 3% a year on their wages when getting COLA. Your purchasing power is decreasing by 3%PLUSbecause in addition, hourlies are having to wait from June 11th until August 1st to start getting that increase--which means June and July's inflation are ignored until the next year's calculation.

Some UAW contracts (John Deere's latest one for example) adjust every 3 months when they include these 3% inflators to offset the timing penalty of COLA.

COLA is bad. Wages go up---but they go up slower than inflation. Purchasing power goes down.

If inflation holds up that means approx $0.30 of our $1.00 GWI will go towards making up for that shortfall.

The point of the GWI is to keep us, more or less, up with inflation. The COLA is for times like these when inflation gets out of control.

DISAGREE.The point of the GWI is to keep us, more or less, up with inflation. The COLA is for times like these when inflation gets out of control.

The point of the GWI is not to keep up with inflation. It is to reward work, skill, and knowledge gained during that year which makes you a more valuable employee to the employer (through not having to pay to train your replacement and get them to your level if nothing else). COLA is there to not diminish those wage increases so that competitor X's wages look more attractive for that skilled employee to take his knowledge to.

You are correct but that cola raise and are regular raise has already been wiped out, your purchasing power has been loweredThe point of the GWI is to keep us, more or less, up with inflation. The COLA is for times like these when inflation gets out of control.

Thank you.(as I stated elsewhere) COLA is easy to calculate....we just have another month's of inflation to be included in it.

COLA in our contract is determined by May 2022's CPI-W which will be released on June 10th, 2022 @ 8:30 am ET. If you plug inApril 2022's CPI-W(which was released on 5/11/22) the estimate is:instead

284.575 (which is April's CPI-W number found here) - 271.52036 (which is May 2021's CPI-W number multiplied by 1.03 as the union only gets COLA when inflation rises above 3%) =13.05464. Now take that number and multiply by $0.05 and you get $0.65 COLA raise with May's inflation adding to it. If inflation remains where it is now then that number could go to $0.75.

So expect a COLA raise between $0.68-$0.75 per hour depending on May's inflation rate.

Some people get little or no annual increases and many do not get the cost of living adjustmentFaster than thatas the union negotiated allowing 3% inflation before they get an increase. Everyone is losing 3% a year on their wages when getting COLA. Your purchasing power is decreasing by 3%PLUSbecause in addition, hourlies are having to wait from June 11th until August 1st to start getting that increase--which means June and July's inflation are ignored until the next year's calculation.

Some UAW contracts (John Deere's latest one for example) adjust every 3 months when they include these 3% inflators to offset the timing penalty of COLA.

COLA is bad. Wages go up---but they go up slower than inflation. Purchasing power goes down.

If inflation holds up that means approx $0.30 of our $1.00 GWI will go towards making up for that shortfall.