FDX-TA and Inflation
 

There has been some use of the notion of low inflation and CPI to justify the 3% pay raise number. I would suggest that times are changing and that the CPI is a very manipulated formula that helps hide the real effects of quantitative easing. A sampling of the headlines tell a different story...

-Parking ticket fees could rise (Alameda)
-Valley truckers hit hard by rising diesel prices (California)
-Overseas demand, unrest could drive up gasoline prices in United States
-World Bank: Food prices at "dangerous levels"
-Companies Warn That Higher Prices Are Looming
-Cotton may force retail prices to rise
-Clothing Prices Set To Rise This Spring
-Produce prices on the rise in Idaho
-High Sugar Prices Hit Bakeries, Confectioners
-Fed's Lacker: Food, Energy Price Rise Definitely A Concern
-Crop Prices Push Up Farmland Value
-Milk production and milk prices expected to be higher in 2011
-Tomato prices soar after cold weather kill-off
-Corn prices increasing, what'll it mean for grocery costs?
-Global wheat prices could soar as China struggles with drought

I would suggest if you are using "inflation numbers" in your decision making process; It may be prudent to look at real numbers, like what you're paying at the pump or in the grocery stores, to see if the 3% is really keeping up.

Let's look at some numbers that are a little more relative to people in our income bracket instead of per capita mean.
My truck averages 13 mpg...about 925 gallons a year for 12,000 miles. If gas goes up $1 I'm out an extra $925 a year because of "inflation." Now if my family made U.S. median family income (all races) of approx $50,000, my 3% raise would leave me a whopping $575 after I paid my fuel bill. Not much left after taxes.
I, fortunately, do a little better. My wide body F/O 3% will be about $4500, give of take a few hundred. Even after taxes take their bite, I will be doing a lot better than the "median family."
Not saying I don't want a larger raise and more realistic per diem, but to say 3% doesn't keep up with inflation is not entirely true. It's easy to manipulate data to support your point of view.

This is probably the index you should be using:


Cost of Living Extremely Well Index

MEC CPI data may not be the best
 

Or you could use this chart and explanation of how the Gubment drives the CPI numbers down to limit liability on pensions and Social Security.

Alternate Inflation Charts

The government changed the formula for computing the CPI in 1990 to lessen the effects of price increases.

That only applies to you rich captains. I drive American made iron.

:D

So - when you take a 6% hit in pay due to reduced schedules (caused by the efficiencies of the FDAs) how far will that 3% pay raise go? :(

Fly FDX,

Gasoline prices have doubled since President "O" got elected (the libs will say that makes me a racist?). Coffee (bean) prices are up 20% in the last month. And I took it up the 4a2b last year!*? I agree, 3% certainly doesn't keep up with inflation. :eek::eek::eek:

MM

Put down the Fox News crack pipe. The "O" is pro labor. Whether you like to admit it or not, you are labor. "W" was pro management/business. One of the many ironies of our pilot group is how far off to the right we are. I think pilots hate the idea that we are actually labor. Sorry I had to be the one to break it to you....

Shouldnt you be in Madison with the "teachers"?

You're labor too. Anyone else need to be told?

And you're on the slave ship! You should know better than the others.