Exactamundo!

Carl

 

I don't get your post. I think you're asking why people feel that we're entitled to get the cost of living covered as an automatic matter, or maybe you're taking to task people that talk about restoration (in an industry that no longer exists) plus inflation. I suppose everyone struggles, in every industry, to have pay increases that exceed increases in the cost of living. From what I can tell, labor (not just organized labor) is losing the fight. This is a universal problem.

Which doesn't mean we should accept it.

I personally would have liked to see us retain the profit-sharing and some sort of inflation adjustment as part of this TA. Didn't happen.

But is that a reason to vote against?

The problem when looking at inflation, is that it significantly reduces the value of the TA in real dollar terms. What I never see any "firm No's" admit, is that it also eats at our current wages. IOW, if the difference between the early (marginal) TA and the normal Section 6 track covers the full 3 years (quite likely), then the difference between the two tracks is about 20%. That's because, under the "normal" Section 6 track, every week/month/year that passes without another TA means an inflation hit, equal to the hit on the "early" track. After about 3 years, you're probably well below 90% of the real value of current wages under the "slow" track.

I'm not leaning yes on the TA based on section 3, but if I was, it wouldn't be based on the great rates. It would be based on the difference between marginal, and just plain awful.

 

Or at the very least, SWAPA's 6+ hour minimum pay per duty day.

Oh well, those SWAPA pukes have never led on anything.

Carl

 

No, my assumptions weren't wrong. I omitted the caveat that yes, even in a down economy and a bad housing markets, there are areas to make money. In fact, buying while the market is low is smart. You are lucky to not be upside down on your home. Congrats.

HOWEVER, we weren't discussing the housing market or your investments.

Instead, folks were trying to tell you how inflation affects your life whether you choose to acknowledge it or not. Simply put, a dollar today isn't worth what a dollar was yesterday. Even if you are ahead on your investments, they aren't worth as much as you think they are due to inflation.

You should spend some time talking to your parents and grandparents about the late seventies when interest rates were 20% and the yearly inflation rate nearly hit 14%. For example, that $190,000 home at a 20% interest rate would have a monthly payment of $3174 and cost roughly $1.14 million dollars total over the life of the loan! With an inflation rate at 14%, imagine needing $114 dollars to buy what $100 did last year. And then $130 dollars the following year and so on. It happened in the 70s! Learn from history.

The reason why some guys on here are worried about our contract and the lack of protection from inflation is that many economists have been predicting a return to stagflation which developed in the 70s due to our government's printing of money (or "quantitative easing".