cost of living allowance--COLA

Discussion in 'UPS Discussions' started by ups clerk, Jun 1, 2010.

  1. ups clerk

    ups clerk Member

    I know the economy is supposedly improving, but I can't believe when it was at its lowest, that we didn't recieve a COLA raise.
    Anybody hear if and when,--stress on the IF, we will get one? Just curious.

    UPSAOT New Member

    This made me LOL. Maybe because I'm not union and as far as I know they stopped doing that back in the early 90s for non-union employees.
  3. brett636

    brett636 Well-Known Member

    Its in the contract that the COLA raise is based on how much the consumer price index(CPI) is increased above a set threshold(I cannot remember what that threshold is). The last time union employees recieved a COLA raise was 2006 and it was .12/hr. We would have recieved one in 2008 if I am not mistaken, but that was a contract year, and on contract years the COLA raise does not apply. I would not expect a COLA raise anytime soon as prices have been deflating or holding steady since 2008 and the raise is only based on the previous years May reading of the CPI versus the current May reading.
  4. JonFrum

    JonFrum Member

    If you're covered by the National Master Agreement . . .

    There was no provision for a COLA during the first 19 and 1/3 months of the Contract (Dec. 19, 2007 thru July 31, 2009.)

    No full-timer will get a COLA during his first 2.5 (now three) years.

    No part-timer will get a COLA during his first five years. (Many full-timers were originally part-timers, so one progression may add to another.)

    No COLA will be paid in any year in which the official Department of Labor Cost of Living Index increases less than 3.5% or so.

    The only COLA we actually received in recent memory was 12 cents per hour in 2006.
  5. Just Numbers

    Just Numbers Retired

    Looks like the cola will go the way of the clipboard.
  6. brownmonster

    brownmonster Man of Great Wisdom

    Here I was planning next years budget with the extra 12 cents. Guess I'll have to cut back on non-essentials.:peaceful:
  7. FracusBrown

    FracusBrown Ponies and Planes

    You are actually ahead of the game if you don't get a COLA raise. You only get COLA when the cost of living out paces the cost of living. Getting it only catches you up to the current cost of living. If you don't qualify for one, it means your pay raises are out pacing the cost of living, thus raising your standard of living (marginally).

    If you get a 3% raise and the cost of living increases 2.5% you are .5% ahead of the cost of living
    If you get a 3% raise and the cost of living increases 3.5% and you then receive a .5% COLA you just break even with the cost of living.
  8. browniehound

    browniehound Well-Known Member

    Excellent point!
  9. JonFrum

    JonFrum Member

    A wage raise isn't a raise at all in any year that it is treated as the bottom part of a COLA payment. Instead of getting a wage raise and a COLA payment, you are effectively just getting a COLA payment.

    This is because the COLA formula does not fully compensate for the increase in the cost of living.

    There is also months' delay before the COLA payments begin, so you are loosing ground there too.
  10. ups79

    ups79 Active Member

    don't complain-us on social security are not getting a cola also. if there is no increase in the cost of living you should not need a cola.

    SWORDFISH New Member

    ya, what Jon said. :peaceful:
  12. grgrcr88

    grgrcr88 No It's not green grocer!

    In the years where a cola raise has been given, it has always been on top of the contractually agreed upon raises. How is that losing ground?
  13. JonFrum

    JonFrum Member

    Suppose someone owed you $5. And they later owed you $10.

    They pay you the original $5.

    When you ask them for the other $10 they say, "Well, I already paid you $5. Here's another $5 to make $10. We're even.

    Wouldn't you feel you lost ground?

    [I'm not claiming UPS is cheating us. I realize the "Yes" voters, as always, approved the COLA formula, and UPS is just following what was negotiated. My point is the formula doesn't fully compensate us for inflation, and so we loose ground every year.]
    UPS79, you won't get a cost of living increase if the actual cost of living doesn't increase. However Social Security recipients have done very well over the years as this chart shows:
  14. Raw

    Raw Raw Member

    What if you get a 3% raise and the cost of living decreases .005%?
    What if you get a 3% raise and the cost of living stays the same?
    What if you get a 3% raise and the cost of living increases three-fold?..........:smart:
  15. FracusBrown

    FracusBrown Ponies and Planes

    It doesn't matter what amount you get. What matters is what it will buy. If you make $30 an hour and that $30 will buy exactly one case of beer, then you get a 3% raise. Now you make 30.90 per hour. Due to infaltion (cost of living) the case of beer goes up 5%. The case of beer now costs $31.50. You can't buy a case of beer with one hours pay. You are losing ground. You have more money, but its buying power is less.
  16. brownmonster

    brownmonster Man of Great Wisdom

    Good analogy but a case of COLA would have made more sense.:peaceful:
  17. Anonymous 10

    Anonymous 10 Guest

    Then you go to one of those places where you brew your own beer I've done it and it's pretty good and cheap.