Originally Posted by Shareholder
Since the increases are cumulative and compounded on top of each previous year's new base rate, the number is closer to 5%+...the 1.75% in the second year is on top of the 1% from the first year, and the 1.75% in the third year is on top of the 1%+1.75% of the prior two years. I guess this is manageable from AC's point of view, wonder how the CAW leadership and rank and file will react? (This is on top of any profit sharing included in the current contract, but how significant per worker has that been?)
That's why the header says "4.5% in raises..." Yes, there is a compounding factor, but it isn't 5% up front. The phasing in allows AC to anticipate higher costs and react accordingly - probably by nuking more CAW jobs.
As for profit sharing, it is what it is, but now will be less than it would be otherwise because of the impact of wage increases.