Originally Posted by
CincoDeMayo
It’s based on longevity, different longevity gets different rates.
It’s clear our NC and Management used an excel spread sheet when coming up with DOS1 rates and basically adjusting the raises at DOS1, to see total cost, and going from there. There isn’t a universal flat %.
So a 12 year CA will see a 4% raise and a 5 year CA will see the 7.5%
We are still trying to fix the horrendous slope of the 2010 contract, trying to shallow it out over each contract. I don’t like this variable % increase, but they (NC) will tell you it’s trying to fix the slope against a management that doesn’t want to.
I think from the management point of view it is based on ATTRITION. They are losing damn few 12 year CAs, but a younger 5 year CA - still on reserve - getting a CJO offer from a legacy is a whole lot more tempted to jump ship.