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.
Union Proposals
General wage increase to all job classifications – 20%
1. Jim will need to calculate the impact of the 20% wage increase proposed by the union. In order to do
this he will have to make the following calculations:a-show the impact on AHWR
b-show the impact on WIB
c-show the impact on NWIB
d-calculate the new TCR for Wilson Bros in the first year of the new agreement if the company actually
agreed to a 20% wage proposal as presented by the union. (5 marks)
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 union’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.
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