Wages and inflation

35years

Gravy route
Inflation is at 7%.
Our wage increase in August 2021 of $.90 + $.33 (COLA) = $1.23
$1.23 increased our wage from $38.44 to $39.67

That is a 3.2% increase...Or a DECREASE of 3.8% in buying power, even with the COLA.
To keep pace with inflation we should be at $41.13

Our negotiated COLA increase last contract was abysmal.
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In August 2022 we will get a dollar and perhaps a $.40 COLA.

That would bring us to $41.07 at contract end 2023
At 7% inflation we would need to be at $47.09 at contract end 2023 to have 2020 buying power.

Are we gong to get an immediate $6 wage increase at the beginning of the new contract?
And $3-$5 increases each year?
That is just keeping pace.

To keep our buying power even with 2020 we would need to be at $66.05 for a 5 year contract at 7% inflation:

Year Wage Rate
2020 38.44
2021 41.13
2022 44.01
2023 47.09
2024 50.39
2025 53.91
2026 57.69
2027 61.73
2028 66.05

I will be retired. But you guys need a REAL COLA or huge wage increases to keep pace.
 

Up In Smoke

Well-Known Member
I know that's not accurate, you would have to add the raise into the entire package for the percentage. I was just messing around. It would be closer to 5%.
 

Netsua 3:16

AND THAT’S THE BOTTOM LINE
The only thing that can fix this is legislation.
I know we’re not big fans of governmental interference here on the super conservative BC, but you guys gotta admit that there’s no way anything will fix itself on it’s own here. This is the result of decades of unchecked capitalism. We allowed small business owners to pay peanuts for so long, now with the min wage hike these owners entire mode is turned upside down. It’s a gigantic cluster. Should have been legislation addressing the problem years ago
 

meritocracy

Well-Known Member
The Federal Reserve needs to jack up interest rates. It'll be rough for a while but worth it in the end. Kill off inflation and pop the bubbles in house and car prices.
 

meritocracy

Well-Known Member
While we're at it, let's make unemployment insurance tougher, means test social security and overhaul the insurance industry.
Unemployment insurance and social security are good for us because they reduce the pool of available workers, driving up our wages. I am in support of better unemployment insurance benefits and expanding social security for that reason and because losing your job sucks and retiring is hard.
 

35years

Gravy route
I know that's not accurate, you would have to add the raise into the entire package for the percentage. I was just messing around. It would be closer to 5%.
I don't even know how you would accurately calculate that number since each region has differing pension contributions, number of paid vacations, and paid sick/ personal days etc. etc.

You would have to consider the total compensation expense for the company for all drivers in 2020 vs 2021 and divide by the number of drivers for each year. That would have to include the 22.4s.

Anyway, the effect on the driver is the same: his wages lagged inflation by 3.8% with equal or worse health care coverage, and tiny pension increases. Or, like many of us, a frozen or declining pension.

Trying to add benefits into the equation is not a simple thing.

And no turkey!!!
 

Heavy Package

Well-Known Member
Anyway, the effect on the driver is the same: his wages lagged inflation by 3.8% with equal or worse health care coverage, and tiny pension increases. Or, like many of us, a frozen or declining pension.

Trying to add benefits into the equation is not a simple thing.


Adding benefits into the equation is a very complicated but calculated down to the penny by UPS thing. Our FT benefits package where I am is over $900/week. I think PT fringe adder is over $15/hr to their wage. UPS knows EXACTLY what an employee's benefit costs are per state and local.

Next contract I would take the same style wage and COLA % increases if we could maintain / improve our working conditions, benefits, pension, and I would add a 401k company match. I anticipate around $50+ COLA wage for FT at the end of the next contract. Benefits as mentioned before would be north of $50k per FT employee if implemented as written. Insane to drive around with mapnav, scan a box, and repeat while averaging $75 / hr for 10 hours per week of OT plus peak hours.
 
I don't even know how you would accurately calculate that number since each region has differing pension contributions, number of paid vacations, and paid sick/ personal days etc. etc.

You would have to consider the total compensation expense for the company for all drivers in 2020 vs 2021 and divide by the number of drivers for each year. That would have to include the 22.4s.

Anyway, the effect on the driver is the same: his wages lagged inflation by 3.8% with equal or worse health care coverage, and tiny pension increases. Or, like many of us, a frozen or declining pension.

Trying to add benefits into the equation is not a simple thing.

And no turkey!!!
The price of health care goes up so much every year and that's something that most people dont pay attention to
 

sailfish

Master of Karate and Friendship for Everyone
The only thing that can fix this is legislation.
I know we’re not big fans of governmental interference here on the super conservative BC, but you guys gotta admit that there’s no way anything will fix itself on it’s own here. This is the result of decades of unchecked capitalism. We allowed small business owners to pay peanuts for so long, now with the min wage hike these owners entire mode is turned upside down. It’s a gigantic cluster. Should have been legislation addressing the problem years ago
Yes. The entity that got us here is who we need to fix it.

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