Cost of living Increases
07-06-2006, 07:32 AM
#1
Thx Age 65
Thread Starter
Joined APC: Jul 2005
Position: MD11CAP
Posts: 1,041
Cost of living Increases
Why when we negotiate for our cost of living increases do we settle for a flat negotiated rate like 3% ? Also why do we allow these to end at the end of the contract?
It seems to a me a better solution would be to tie these raises to the Consumer Price index and have them last until a new contract is signed.
The Company has no reason to quickly settle under the current RLA. At least this would keep pay rates up with inflation.
Has this been tried? Yes some years the raise would be lower than others, but it would keep them from stagnating once the contract is over. And instead of negotiating from a $206 max hourly pay rate as we are now, we'd be negotiating from a $225 ish pay rate.
It seems to a me a better solution would be to tie these raises to the Consumer Price index and have them last until a new contract is signed.
The Company has no reason to quickly settle under the current RLA. At least this would keep pay rates up with inflation.
Has this been tried? Yes some years the raise would be lower than others, but it would keep them from stagnating once the contract is over. And instead of negotiating from a $206 max hourly pay rate as we are now, we'd be negotiating from a $225 ish pay rate.
07-06-2006, 07:58 AM
#2
Gets Weekends Off
Joined APC: May 2006
Position: Bug Smasher Captain, CFI
Posts: 220
The CPI understates inflation, so having a COLA tied to it isnt a good idea. However, it has become the benchmark. I suspect that the 3% figure is supposed to reflect an "average" inflation figure for the time that the COLA is supposed to cover.
My guess is that your employer wants to have relatively predictable wages over the life of your contract.
My guess is that your employer wants to have relatively predictable wages over the life of your contract.
Thread
Thread Starter
Forum
Replies
Last Post
