The terms of the last collective agreement provided wage and benefits have resulted in costs in the final year of the contract of:
Average Hourly Wage Rate: $30.00
Wage Impacted Benefits: $ 4.50
Non-Wage Impacted Benefits: $ 3.00
Total Compensation Rate: $37.50
These numbers will be used as the base year for future calculations.
2. Jim will need to calculate the impact of the safety boot and pension proposal on the non-wage impacted benefit calculation in the first year of the new agreement. He will assume each employee works a 40-hour week, 52 weeks per year. Calculate the new non-wage impacted benefit (NWIB that would result from accepting the unionâ€™s proposals)? (5 marks)
Add new: Pension Plan Company Contribution of $500,000 in the first year of the new collective agreement.
Add new: Safety Boots Requirement, Company Paid, $50.00 per year per employee.