Editing Section 9.3 Cost of Living Adjustment R2022 (section)

=== Section 9.3 Cost of Living Adjustment ===
<ol style="list-style-type:upper-alpha">
<li>Definitions</li>
<ol style="list-style-type:decimal">
<li>"Consumer Price Index" refers to the "National Consumer Price Index for
Urban Wage Earners and Clerical Workers," published by the Bureau of
Labor Statistics, United States Department of Labor (1967=100) and referred
to herein as the "Index."</li>
<li>"Consumer Price Index Base" refers to the Consumer Price Index for the
month of '''July 2022''' [<s>2019</s>] and is referred to herein as the "Base Index."</li>
</ol>
<li>Effective Dates of Adjustment
Each eligible employee covered by this Agreement shall receive cost-of-living
adjustments, upward, in accordance with the formula in 4.C, below, effective on
the following dates:
</br>- the second full pay period after the release of the '''January 2023''' [<s>2020</s>] Index
</br>- the second full pay period after the release of the '''July 2023''' [<s>2020</s>] Index
</br>- the second full pay period after the release of the '''January 2024''' [<s>2021</s>] Index
</br>- the second full pay period after the release of the '''July 2024''' [<s>2021</s>] Index
</br>- the second full pay period after the release of the '''January 2022''' [<s>2019</s>] Index
</br>- the second full pay period after the release of the '''July 2022''' [<s>2019</s>] Index</li>
<li>The basic salary schedule provided for in Table One and Step P of Table Two of
this Agreement shall be increased 1 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 '''January 2023''' [<s>January 2022</s>] to '''July 2023''' [<s>January
2020</s>] is 1.2 points, pay scales for employees in Table One and Step P of Table
Two of 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. Steps BB through O in the basic salary
schedules provided for in Table Two of this Agreement shall receive COLAs
calculated using the formula in this paragraph, adjusted proportionally as
reflected in Table Two.</li>
</ol>
<u>Explanation:</u> <blockquote>''These changes ensure that all career employees covered by the tentative</br> agreement will receive six cost-of-living adjustments during calendar years</br> 2023 through 2025, with the first COLA effective in March 2023. The exact</br> amount of the COLAs will be based on future increases in the Consumer</br> Price Index. As Mail Handlers know from previous years, because of largely</br> unpredictable fluctuations in the rate of inflation, economists have great</br> difficulty in accurately projecting the amount of these COLAs. For example,</br> the seven COLAs paid during the 40-month term of the 2016 National</br> Agreement averaged $345 per COLA, and the six COLAs paid during the</br> 2019 National Agreement averaged $1,081 per COLA. If these averages</br> were to repeat themselves during the term of the 2022 National Agreement,</br> the COLA provision, by itself, could provide between $1,800 and $6,000 in</br> additional base wage increases over the next three years. Of course, should</br> inflation moderate, these guaranteed COLA payments will be lower, and</br> should inflation remain high, these guaranteed COLA payments could result</br> in large wage increases. That is why continuation of the COLA provision is</br> so important.''</blockquote>