Question about part time wage progression

Discussion in 'UPS Union Issues' started by ladmeih, Jan 14, 2010.

  1. ladmeih

    ladmeih Member

    How does part time wage progression work in conjunction with COLA? Are yearly seniority raises supposed to be .50 cents or simply rounded up to the next .50 cent interval?

    i.e. $10.50 + 35 cents for COLA = 10.85 then yearly raise would be .15 cents or is it 10.85 + .50?
  2. JonFrum

    JonFrum Member

    If you are under the National Master Agreement, there is a COLA formula in Article 33, but it doesn't apply to anyone still in progression.

    The formula isn't easy to trigger. Inflation has to increase by four percent or so, otherwise there is no cost of living adjustment.

    The last COLA in recent memory was 12 cents in 2006.

    When a COLA is paid, it is above and beyond ( in addition to) any other raises you are entitled to, and becomes a fixed part of the wage base from that moment on.

    Article 33
    Cost-of-Living (COLA)

    All seniority employees who have completed their appropriate wage progression schedule shall be covered by the provisions of a cost-of-living allowance, as set forth in this Agreement.

    Employees who have not completed their appropriate wage progression on the effective date of a COLA increase, shall receive the adjustment on a prospective basis on the date they complete their wage progression schedules.

    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 costof-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.

    All cost-of-living allowances paid under this Agreement will become and remain a fixed part of the base wage rate for all job classifications. A decline in the Index shall not result in the reduction of classification base wage rates.

    Mileage paid employees will receive cost-of-living allowances on the basis of .25 mills per mile for each 1 cent increase in hourly wages, subject to the threshold set forth above.

    In the event the appropriate Index figure is not issued before the effective date of the cost-of-living adjustment, the cost-of-living adjustment that is required will be made at the beginning of the first pay period after the receipt of the Index.

    In the event that the Index shall be revised or discontinued and in the event the Bureau of Labor Statistics, U.S. Department of Labor, does not issue information which would enable the Employer and the Union to know what the Index would have been had it not been revised or discontinued, then the Employer and the Union will meet, negotiate, and agree upon an appropriate substitute for the Index.

    Upon the failure of the parties to agree within sixty (60) days, thereafter, the issue of an appropriate substitute shall be submitted to an arbitrator for determination. The arbitrator’s decision shall be final and binding.
  3. ups79

    ups79 Active Member

    No cola this year at all. Ask us people who are on social security.
  4. 24601

    24601 New Member

    It is nice to get a little pay raise, but we didn't need a cost of living increase since there was actually 1.2% deflation from may 08-09
  5. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Didn't you get your $250 check?:wink2:
  6. ladmeih

    ladmeih Member

    My question still isn't answered, it was more about how seniority raises are added to COLA and not how COLA is factored. What my real question was is if I'm making $10.85 would my yearly seniority raise be only .15 cents to make it an even $11.00 based on the part time wage progression tables?
  7. JonFrum

    JonFrum Member

    You specifically asked about COLA raises, and I explained that you don't get one, but if you did, it would be permanently added to whatever other raises you may get.
    - - - - -
    There is no such thing as a "yearly seniority raise," so I suggest you read Article 22, Section 5 of the National Master to clear things up . . .
  8. JonFrum

    JonFrum Member

    Yes, but remember all those years that inflation was running at one or two or three percent or so, and we didn't get a penny in cost of living adjustments. They add up over time. We have lost ground.
  9. ladmeih

    ladmeih Member

    Thanks, someone else at work said it was COLA when in the contract it's just general wage increase which is what I meant. I guess it would be the same for general wage increase(Feb. and Aug.) and the yearly seniority date + 1 year increase.
  10. iowa boy

    iowa boy Well-Known Member


    To answer your question, if you attained seniority on or before Aug 1, 2008 you get the oh so famous split raises the rest of us get.

    All part-time employees who have attained seniority as of August 1,
    2008 will receive the
    following general wage increases for each contract year. In each of the years, the increase shall be
    paid in two (2) equal installments. The first-half of the increase shall become effective on August 1
    of the specified year. The second half of the increase shall become effective on February 1 of the following calendar year.

    If you were hired or attained your seniority after Aug 1st, you only get the progression raises.

    (b) Newly hired part-time employees
    All part-time employees, who are hired or reach seniority after August 1, 2008 will be paid
    according to the following wage schedules:

    These are quotes from the tdu website JonFrum quoted in his post above.

    Hope this helps.

  11. Ironman

    Ironman New Member

    so being hired after august 1st 2008 does that mean i dont get the raises that they mentioned in section a or am i just not reading this contract correctly
  12. UnsurePost

    UnsurePost making the unreadable unreadabler

    It means you get different raises. Your raises will come with your anniversary dates of seniority, aka your hire date.
  13. Ironman

    Ironman New Member

    *sigh* i should have read this contract a long time ago
  14. Kae3106

    Kae3106 Active Member

    Ok, here's the deal with the progression. It got kind of tricky with the 2008 contract. I think you are referring to the general wage increase (GWI) not a COLA.

    You receive your progression step increases as follows:
    90 days
    1 year
    2 years
    3 years
    4 years

    There is also a general wage increase (which PT employees in progression are eligible for for the first time with the 2008 contract) on August 1 and February 1.

    The progression step rates are: (unskilled) skilled rates are $1 more
    Start $8.50 step 1
    90 days $9.50 step 2(changed to a $1 raise from $.50 with 2008 contract)
    One year $10 step 3
    Two years $10.50 step 4
    Three years $11.00 step 5
    Four years $11.50 step 6

    Let's say you got hired on 9/1/2008 at $8.50
    9/1/2008 start $8.50 step 1
    12/1/2008 90 days $9.50 step 2
    2/1/2009 GWI $.35 $9.85 still step 2
    8/1/2009 GWI $.35 $10.225 still step 2
    9/1/2009 one year $10.225 step 3 (right here, you stay at $10.225 and do not get a raise because the step 3 rate is $10.00 and you are already making more)

    The increases for the 8/1/2008 and 2/1/2009 GWI were $.35 and the increases for 8/1/2009 and 2/1/2010 were $.375

    Basically, if you are below the step rate when you reach a new progression step, your rate will be increased enough to reach the step rate. (If you were making $10.35 and the step rate is $10.50, your rate will increase to $10.50. You will not get $.50 on top of your current rate. It is no longer a set amount when you reach a progression step, just enough to cover the difference between your rate and the step rate.)

    If your rate is above the step rate, it will remain the same. The GWI in August and Feb will be the published contractual increase rate that every receives regardless of your current rate. (If you are making $10.85 and the step rate is $10.50, no raise on your seniority date. You still got raises but they came on 8/1 and 2/1)

    The GWI does not apply to the air drivers in progression. No GWI for them until top rate.
  15. JonFrum

    JonFrum Member

    Kae, the progression increase in "step 6" is 87 cents, not 50 cents. So a New Hire under the "All Other" (sometimes called Unskilled) scale would make $11.87 during his fifth year. The "Preloader/Sorter" scale (sometimes called Skilled) is one dollar more: $12.87.

    The 8-1-2009 GWI was $.375. You got it right in one place and wrong in another.

    Also, only part-timers who made seniority by 8-1-2008 are eligible for the General Wage Increases (sometimes called "split wages") on August 1st and February 1st of each year. So the person in your example, hired on 9-1-2008 would not be eligible.

    Teamster and UPS negotiators get paid a lot of money to stay up very late at night in very expensive hotels with fully stocked bars and gentle-touch massage therapists to make this stuff so unnecessarily complicated. I trust everyone appreciates their efforts to keep part-timers just one step ahead of the Minimum Wage.
  16. Kae3106

    Kae3106 Active Member

    Sorry...didn't have my rate charts in front of me when I typed it up...I knew that about the step 6. Same thing about the seniority by 8/1/2008. I was just trying to make up an example on the fly. Hangs head in shame for making up a bad example. You can tell it's been a few months since I've actually processed the payroll. Thanks for the correction.....I'll go stand in the corner now. :happy2:
  17. iowa boy

    iowa boy Well-Known Member

    I found out that the part-timers that were in progression when the monetary aspect of the contract took effect on Aug 1, 2008 came out of progression and now only receive the GWI's every six months.

    No progression raise every year which I understand, but yet dont, as the contract doesn't specify what would happen to them after Aug 1, 2008.
  18. JonFrum

    JonFrum Member

    The General Wage Increases (split wages) are larger than the annual progression wages so the progression wage increases become moot after the first one. Once a pre-August 1, 2008 part-timer gets beyond August 1, 2008, he doesn't get the remaining progression increases that he is theoretically entitled to, because he is already making more than the progression mandates, and the Contract says he shall make only at least what the progression says.

    Same problem in the last Contract. The first progression raise yielded only 15 cents, and the rest were inapplicable because the part-timer was already making more than the progression guaranteed.

    I wonder if the membership will fall for this deceptive language, where a progression raise isn't really a raise, again in 2013 when the Contract is up for renewal?
  19. iowa boy

    iowa boy Well-Known Member

    Jon, with your help and rereading the wage part of the contract, I now understand what the company did. Thank you.:happy-very: