Retro Pay Correction

There was a small error in the previous email sent out regarding the calculation of retro-pay.

The one percent increase of December 1, 2010 should not have been compounded on itself. Therefore to calculate whether the amount is correct, follow the example below substituting your salary for the $30,000.

Initial salary $30,000 with the 1% increase of December 1, 2010

(30,000 x.01 = $300)

So the new salary is $30,300.

This increase of $300 would be calculated for fifteen months (Dec ember 1, 2010 to present, less the three months on strike) or 1.25 years

($300 x 1.25 = $375)

New Salary of $30,300 with the 1.2% increase of June 1, 2011

(30,300 x .012 = $363.60)

So the new salary is $30,663.60

This increase of $363.60 would be calculated for nine months (June 1, 2011 to present, less the three months on strike) or 0.75 years

(363.60 x 0.75 = $272.70)

Total retroactivity: $375 + $272.70 = $647.70 before tax and other deductions.

PLEASE NOTE THIS IS AN APPROXIMATION. WE DID NOT RETURN TO WORK DECEMBER 1ST THEREFORE DECEMBER IS A PARTIAL MONTH

Calculating Lump Sums

Annual increases are not added to the base salary, therefore the 1.2% increase would be calculated on the initial salary of $30,000 (in this example) rather than the adjusted salary.