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Old 10-02-2011 | 06:54 PM
  #77156  
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DAL 88 Driver
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Joined: Mar 2009
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From: Retired (mandatory age 65)
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Originally Posted by Timbo
No...but I'll take your word for it. Like I said, I didn't come up with the numbers but I'm going to put 150% raise on my survey, just to offset all the asshats who will put something lame like 25%.
I think you're limited to 99% by the survey format.

Thanks for taking my word for it... but for anyone else having a hard time wrapping their brain around this, here's a little further clarification:

Let's use $100/hour as an example. If you take a 32.5% pay cut, you end up with a new rate of $67.50. If you take a further 14% pay cut on the $67.50, you end up with a new rate of $58.05. $58.05 is a cumulative total of a 42% (41.95% to be exact) pay cut off the $100 rate with which you started.

To restore a 42% pay cut would require a 73% increase. (Look at the $100 rate again. $100 - 42% = $58. $58 + 73% = $100.)

Now, we had some pay increases since we took the cumulative total pay cut of 42%. That's the reason it no longer takes a 73% increase to restore our 2004 C2K rates. With the rates we have now, it takes a 41.5% increase to restore us back to the actual 2004 C2K rates. If you factor in inflation to those 2004 C2K rates, it then takes a 70% increase to restore our current rates back to the buying power those 2004 C2K rates afforded.

Hope that helps.