Freight, Carhaul Members to Receive COLA

Teamsters under the national freight contract will soon receive a cost-of-living allowance (COLA) of about 10 cents per hour on top of the negotiated increase of 45 cents per hour, while members under the national carhaul contract will receive a COLA of about 21 cents per hour on top of the negotiated 40 cents per hour increase.

“This is great news for our freight and carhaul members,” said Jim Hoffa, Teamsters General President. “When we negotiated these contracts, we put teeth into the COLA provisions so that they would provide security to our members. We’re seeing that pay off now.”

Members covered by the 2003-2008 National Master Freight Agreement (NMFA) will be due the COLA under Article 33 when the next scheduled hourly and mileage increase takes place on April 1, 2006.

Members covered by this agreement are eligible for an annual COLA in 2006 that allows a one cent ($0.01) per hour and .25 mills per mile increase for every .2 increase in the Consumer Price Index (CPI-W) in excess of 3.0 percent and at least totaling $0.05. Reaching an index level of 194.0 in January of 2006, the CPI-W increased 4.1 percent since January 2005 that translates to the following COLA increases:

$0.10 per hour, and

.250 cents per mile (or a ¼ penny).

These increases are in addition to the negotiated increases per the 2003 NMFA settlement which are effective April 1, 2006:

$0.45 per hour, and

1.125 cents per mile.

This means that hourly wages are scheduled to increase by 55 cents per hour and 1.375 cents per mile on April 1, 2006.

This is the first wage COLA payable to freight members covered by the NMFA since 1982. The COLA in 1983 and 1984 was diverted to health, welfare and pension. In addition, the 55 cents payable on April 1, 2006 will be the largest annual increase Teamster freight members have received since 1981 when the COLA paid 77 cents.

“In 2003, we won a real cost-of-living-adjustment (COLA) that protects members against inflation,” said Tyson Johnson, Teamsters National Freight Director. “The situation this past year is exactly what we had in mind when we were at the bargaining table.”

Carhaul

Teamsters covered by the 2003-2008 National Master Automobile Transporters Agreement (NMATA) will be due a COLA per Article 23 when the next scheduled increase takes place on June 1, 2006.

Members under the NMATA are eligible for an annual COLA in 2006 that allows a one cent ($0.01) per hour, .50 mills per loaded mile, .25 mills per running mile and .1 percent flat or zone rate increase for every .1 point increase in the index in excess of 3 percent.

That translates to the following COLA increases:

$0.21 per hour;

$0.0105 per loaded mile;

$0.00525 per running mile, and

2.1 percent flat or zone rate.

Frozen rates and driveaway hourly, mileage rates and flat/zone rates will be increased in a similar manner.

These increases are in addition to the negotiated increases per the 2003 NMATA settlement effective June 1, 2006:

$0.40 per hour (includes drivers, yard, service and office);

$0.0200 per loaded mile;

$0.0200 per frozen mile;

$0.0100 per running mile, and

2.0 percent flat/zone/shuttle/incentive/loading and unloading or other wage rates (includes tool allowance and all other monetary items in the Supplements including skid drops).

This means that hourly wages are scheduled to increase by 61 cents per hour and 3.050 cents per loaded mile on June 1, 2006.

“We worked hard to negotiate these provisions for our members,” said Fred Zuckerman, Teamsters Carhaul Division Director. “Our members have given some employers concessions the past two years. This COLA will protect us going forward. It’s time to get something back for our members.”

COLA information for UPS Teamsters is not known at this time, because COLAs are determined on a May to May calendar basis. That information will be released in June of this year.