There are two ways to look at 1.5% with this transit union contract.
The controversial part of the rejected contract now up for a revote is the 1.5% of gross wage deduction for a new health insurance premium to pay for the health care of retirees.
Union leadership says all the 1.5% does it reduce the 10.5% in raises over three years to a 9% raise over three years.
Union dissidents, on the other hand, like Ainsley Stewart have repeatedly said, that the contribution equals 4.5% over the life of the contract so the raise is just 6%.
Roger is right and Ainsley is wrong.
Let’s figure it out. The contract up for a vote calls for 3%, 4% and 3.5% in raises.
Let’s say a worker makes $1,000 a pay check. The first year a worker will get $30 extra for for his 3% raise and then lose $15 for the 1.5% health insurance deduction. Total of $1,015.
The next year, the worker’s pay check, now at $1,030 will rise 4% to $1,071.20. Subtract the 1.5% for health insurance ($16.07) and he ends up with $1055.13.
The final year, the worker's pay check at $1,071.20 rises 3.5% ($38.5) to $1,109.70. Subtract 1.5% for health insurance ($16.65). So the worker ends up with $1,093.05.
After three years, the worker’s pay check including raises and minus health insurance, rose 9.305% from $1,000 to $1,093.05.
Roger’s math is right. Anyone figure differently?
-- Chuck Bennett