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COLA in the CBA

Old 12-14-2021, 05:47 AM
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Default COLA in the CBA

At this rate if you dont have your wages pegged to the CPI you could pretty easily halve your real wages every give years.

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Old 12-14-2021, 06:56 AM
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2000-2020 CPI averaged 2.1%. In that 21 year time frame, CPI has exceeded 3% only five times.

2021 is gonna be a big one, no doubt...but while I've never bought the "transitory" line from the Fed I think there's scant reason to believe these kinds of sharp increases will continue at the same rate for years on end into the future.
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Old 12-14-2021, 07:58 AM
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Originally Posted by BoilerUP View Post
2000-2020 CPI averaged 2.1%. In that 21 year time frame, CPI has exceeded 3% only five times.

2021 is gonna be a big one, no doubt...but while I've never bought the "transitory" line from the Fed I think there's scant reason to believe these kinds of sharp increases will continue at the same rate for years on end into the future.
In which case nobody should object to putting CPI adjustments in the contracts then. The social security and military retirees just got a 5.9% increase for 2022 due to the current CPI. Most major CBAs had a 2-3% increase for the year. They went backwards two to three years worth, doesn’t take many years like that to make a 5 year CBA a losing proposition.

For every 100,000 in wages you earn today, five years at 2% will leave you with only $90,578. At 3% for 5 years that would go down to $86,260 in value.

Do the math yourself.

Last edited by Excargodog; 12-14-2021 at 08:11 AM.
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Old 12-22-2021, 04:59 PM
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Originally Posted by Excargodog View Post
In which case nobody should object to putting CPI adjustments in the contracts then. The social security and military retirees just got a 5.9% increase for 2022 due to the current CPI. Most major CBAs had a 2-3% increase for the year. They went backwards two to three years worth, doesnt take many years like that to make a 5 year CBA a losing proposition.

For every 100,000 in wages you earn today, five years at 2% will leave you with only $90,578. At 3% for 5 years that would go down to $86,260 in value.

Do the math yourself.
Yep, not sure why any Pilot would argue against this?
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Old 12-27-2021, 03:16 PM
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Originally Posted by BoilerUP View Post
2000-2020 CPI averaged 2.1%. In that 21 year time frame, CPI has exceeded 3% only five times.

2021 is gonna be a big one, no doubt...but while I've never bought the "transitory" line from the Fed I think there's scant reason to believe these kinds of sharp increases will continue at the same rate for years on end into the future.

Even 3-4 years would be a big hit plus the inevitable recession as the result of disinflation. 73-84 wasnt a picnic.
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Old 12-31-2021, 10:07 AM
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Originally Posted by galaxy flyer View Post
Even 3-4 years would be a big hit plus the inevitable recession as the result of disinflation. 73-84 wasnt a picnic.
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Old 12-31-2021, 11:17 AM
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Old 01-12-2022, 07:08 AM
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Any CBA not containing a CPI offset (or a 7% annual boost for THIS year) is losing ground from the moment it is signed:

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Old 01-16-2022, 11:55 PM
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Originally Posted by BoilerUP View Post
2000-2020 CPI averaged 2.1%. In that 21 year time frame, CPI has exceeded 3% only five times.

2021 is gonna be a big one, no doubt...but while I've never bought the "transitory" line from the Fed I think there's scant reason to believe these kinds of sharp increases will continue at the same rate for years on end into the future.
"Transitory" inflation cycles (in the US) have generally lasted 18 to 24 months. This one seems in line with that... happened in 80-82, 89-90, and now, not a big deal unless you're at minimum wage (why in the $*#@ is that so low again by the way? is it freedum?) or not under a CBA (unfortunate for most 'mericans, though they do it to themselves).

Last edited by 4dalulz; 01-17-2022 at 12:05 AM.
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