Here is the Inflation YOY since 2004:
Historical Inflation data from 1914 to the present
Put the link so you can verify the source
2004: 2.68
2005: 3.39
2006: 3.24
2007: 2.85
2008: 3.85
2009: -0.34
For a grand total of 15.67% total inflation since the start of 2004. (liner non compounding math used.) Compounding annually equals about 16.61%
So what you are asking for on Jan 1, 2013 is this:
Lets use 2012 777/744A pay and compare it to 2004 C2K 777 pay of 319 an hr
319-225= 94 dollars per hr up front plus a 15.67% increase on the 319 figure to equal 368.99 per hr from our book of 225, or a 64% increase, correct? (or 65%)
Math 319-225= 94 bump plus inflation=
319x 1.1567=368.99 per hr (or the other way 371.99 per hr)
368.99-225.00= 143.99 per hr immediate increase. (371.99-225= 146.99)
Lets just extrapolate that out a little as well. 5% last year was equal to 90 million. 4% next year is equal to 75 million. Without computing the non-linear data for the next two pay bumps that would equate to a 18-18.75 million dollar per percent increase in the total value of the PWA without costing out more retirement and or work rule improvements.
We on the same page?
We will use 18 million for a uber conservative estimate on pay costs alone.
18 x 64= 1.152 billion dollar increase to the PWA for hourly rates alone (or 18 x 65= 1.170 billion)
This is public math and I am doing it by had, but you get the point of what that is correct? It will equate to the total profit we will make this year and some more if we make another 600 million this year.
Before we discuss the merits and positions of the proposal I want to ask you a few questions:
1)How long you think it will take to get the company and a mediator to agree to releasing us for this amount on day one? five, six, seven years?
2)What is the inflationary rate going to do over this period now that we are coming out of a high debt recession for the us government?
3)How strong do you think these guys that will retire in 2019-2020 and before are going to be given that they may never see a penny of this?
4)Do you think that 50% of this group that will retire in that time frame is going to take a more pragmatic approach that will most definitely put more money in their pocket now so they can invest it correctly in a boom cycle?
5) Where do you see the economy in this time frame (2017-2020) given our boom/bust cycle? Do you see it as an era that will allow an end game to be played out?
6) Who is going to be in the White House?
7) Is foreign ownership going to change the game completely?
Just questions I want answered before I sign on to any proposal?