Originally Posted by
Sink r8
You guys are hilarious. Well, you would be, if you weren't talking about real gains and losses affecting real families, as if it's a philosophical point only.
Not only is the MEC not able to wrap-up a deal that trounces TA1 in value when the environment is just about perfect, and all the positive catalysts are baked in, but they're slowing going down a trajectory where they'll underperform TA1 in terms of TVM.
The longer you wait, the higher the rate increases have to be.
That's where I'm coming from.
Do you make TVM calculations based on the duration of a single contract? I sense that to be the math behind the impatient minority. It's dangerous thinking if one wants to get this historic opportunity right.
This contract is a baseline for the next...not just ours, but our peers' who will have contracts built upon whatever benchmark we set next. Naturally, it will be those peer contracts that we'll next incorporate into negotiations and debate our next time around.
Do you have any examples of concessions that lasted only one contract? Most seem to be pretty well baked in. I think it wise to calculate TVC over several contracts too. Seeing as how massive retirements won't transpire during THIS contract, but only in the two that follow, we (you?) should be taking a longer view on this whole process. Of course anyone who retirees in the next 3-5 years might have completely different motivations. I'll be around for two decades more.