WMBD details Caterpillar and UAW tentative agreement details released.
PEORIA, Ill. – Details of a tentative six-year agreement between Caterpillar and the UAW have been released.
The previous deal expired at midnight Wednesday, and the agreement was struck right before that.
Caterpillar says there will be guaranteed wage increases and guaranteed lump sum payments at a combined 27%.
In the first year of the deal, upon ratification, employees will receive a 7% wage increase. Wage increases of 4% will occur in years 3, 5, and 6. Employees will receive lump sum payments of 4% in years 2 and 4.
Obviously, the collective bargaining agreement is composed of many factors, some of which will affect wages. That said, let’s look at the wages portion of the agreement and how that would look if we mirrored them. These numbers reflect full wage scale and the related percentages. A new hire rate of $17.00 per hour will receive slightly more than half the full scale raise.
First year:
$32.32 x 7% ($2.26) = $34.58 per hour after the raise.
Second year:
$34.58 x 2080 hours (year) = $71,926.40
Lump sum: $71,926.40 x 4% = $2,877.05 lump sum bonus
Third year:
$34.58 x 4% ( $1.38) = $35.96 per hour after the raise
Fourth year
$35.96 x 2080 hours (year) = $74,796.80
Lump sum: $74,796.80 x 4% = $2,991.87 lump sum bonus
Fifth year: $35.96 x 4% ( $1.43) = $37.39 per hour after the raise
Sixth year: $37.39 x 4% ($1.49) = $38.88 per hour after the raise
Mirror, Mirror, on the wall
Is this contract the fairest of them all?
(graphic via clipart.com)
