COLA's ( posted May 25, 200 There doesn't seem to be a day that goes by when I don't hear my fellow co-workers complaining about the ever increasing cost of gas, food, and just about everything else. And I'm right there with them. On my way to work, I pass by three or four gas stations, and the price will be one thing, and then on my way home, it's jumped 5 cents or better. If I stop at the H.E.B. on my trip home, the $100 worth of grocries that I spent last month cost me $20 to $25 more. It seems to be a never-ending battle to keep up. And just the other day, CPS Energy annouces (Hot Weather, Fuel Prices to Affect Summer Utility Bills) that cost for this summer will be around 30% higher. Oh great! During breaks at work, when the subject comes up, I try to lighten the situation somewhat with the reminder that APWU represented employees have our COLA's. This always comes with a myriad of questions like, "When is the next one?", "How much will it be?", "How do they figure it?", etc. I never have a good answer and thought I'd do a little research. It's probably stuff I already knew but as the years pass, things you know you knew, suddenly you don't. Here is a good and funny testiment to that fact. About the same time I started with my research, Asst. Clerk Craft Dir. Robert Rodriguez sent me a copy of an email that he sent to APWU President Burrus on his "Ask the President" web page. Robert's email stated: "With the cost of gasoline at the pumps estimated to reach $5.00 and above in some regions, what effect does this have (if any) on the Cost Of Living Allowance (COLA) increases already negotiated during the 2006-2010 negotiations? I hope he gets an answer but he may not because a couple of months ago a member from Springfield MA Area Local asked a similar question of: "The cost of living has increased significantly as a result of the increases in the price of a barrel of oil. As you well know, this has increased the cost of everything we buy, including food. Our COLA does not reflect the true cost of the increase in the cost of living, or even come close to it. I know that the “basket” [used to measure increases in the Consumer Price Index] has changed in recent years, but even this does not seem to explain the low COLA. Given the fact that the COLA has been such a major part of our pay in past years, are there any plans for APWU to seek changes in the formula?" You can read President Burrus's answer here. And what I found interesting in his answer was the fact that we don't get what I thought we got. The COLA provisions in the APWU contract replace 60 percent of the actual increase in the Consumer Price Index. Learning, always learning. He also stated that, "With our history, I would be reluctant to submit the improvement of our COLA formula to an arbitrator: Negative, unintended consequences could be the result." Here is what I found in our
Collective Bargaining Agreement (pdf). C. The basic salary schedules provided for in this Agreement shall be increased l cent per hour for each full 0.4 of a point increase in the applicable Index above the Base Index. For example, if the increase in the Index from July 2006 to January 2007 is 1.2 points, all pay scales for employees covered by this Agreement will be increased by 3 cents per hour. In no event will a decline in the Index below the Base Index result in a decrease in the pay scales provided for in this Agreement.
Cost of Living Adjustment (COLA) Update
I, like most of you, say thank god for COLA's. Should we negotiate for a better percentage in the CPI? Why not? It should always be a part of our negotiating plan. |
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