...and I believe he is correct. Our current rate would not be the previously negotiated rate, it would be where we stand now because of the snap up with 3B4. The 3B4 raise we got over a year ago (something like .5%) would have been larger to arrive at today's current rate. And PS would be larger too. What am I missing?

This is the reason the company wants to wipe out 3B4. It makes it much easier (next time if not this contract) to reduce PS.