What A ZERO Costs

Attached is a chart showing how taking a zero today affects a new hire for the next 30 years. This chart assumes a yearly salary of $80,000.00. It will cost a new engineer $5,491.03 in direct salary and cumulate loss of $108,525.24 over his 30 year career with the railroad.

For engineers working today. After four years at the end of this contract it will cost us (with same salary of $80,000.00) $2,622.54 in direct salary with a cumulative loss of $12,741.93.

After 10 years it will cost us $3,131.46 in direct salary with a cumulative loss of $27,513.31

After 15 years it will cost us $3,630.22 in direct salary with a cumulative loss of $44,637.39

After 20 years it will cost us $4,208.41 in direct salary with a cumulative loss of $64,488.90

After 25 years it will cost us $4,878.71 in direct salary with a cumulative loss of $87,502.23

What have we gained with this zero. We can directly see the losses and how it affects our salary. A zero combined with new hires paying health and welfare, paying 3% of their salary for the pension for their entire careers, and over a $108,000.00 in salary loss is a hugh price to pay for a guy just starting out. With no caps in sight, his future looks very bleak. A tremendous burden to pay for the golden parachute for the senior who is going to retire shortly, who has not and will not pay a dime and doesn't care about anyone else but himself. The senior guys protected him when he started out with salary and benefits. He had the same salary and benefits of the guy standing next to him who had been on the job for 30 years. What can he now say about how he left it for the new guy when he goes to retire. Better off or worse off? Union verses Association?