7/20/2012 9:40:16 AM
News – The CPI numbers have been released and will generate a whopping $62 per year COLA pay increase for every employee in March 2013. The contract was effective in May, 2011/ November 2010 [pick your date] and this is the first wage increase that will be delayed until March 2013. Employee’s contribution for health insurance increased from 19% on the date of the contract to 21% in January 2012 and 22% in January 2013, which means that by the time that the $62 COLA is received in March 2013, employees will be paying 3% more for health insurance. The result is that two and a half years from the expiration of the previous contract, November 2010, in March of 2013 employees’ net pay will have been reduced by the differance between the $62 COLA payment and the increased health premium payment.
In the 41 years of postal collective bargaining (13 contracts plus 2 extensions) this will be the first time that wages have been reduced over a 12 month period. Someone appropriately titled this new contract a “new direction” – down.This compared to the first two years of the 2006 national agreement when a Grade 5 Step O employee received salary increases of $2,600 over the first two years of the contract and health premiums were increased by one percent.