What was the COLA increase for 2025?

What was the COLA increase for 2025?

• A. 4.5%
• B. 5.5%
• C. 6%
• D. 7%

Answer: (A)

COLA adjustments are designed to preserve purchasing power by linking wage increases to inflation as defined in the bargaining agreement. The contract specifies how the annual COLA is calculated—typically using a CPI measure over a 12-month period—and then applied to base pay on the contractually defined date. For 2025, the inflation measure used in the COLA calculation increased by 4.5% over the relevant 12-month period. That result meets the contract’s trigger for a 4.5% COLA, so the 2025 COLA is 4.5%. The higher percentages would require a larger inflation reading or a different contractual trigger, which did not occur for 2025. As a result, all bargaining-unit members receive a 4.5% increase to base pay, effective on the date specified in the CBA.

COLA adjustments are designed to preserve purchasing power by linking wage increases to inflation as defined in the bargaining agreement. The contract specifies how the annual COLA is calculated—typically using a CPI measure over a 12-month period—and then applied to base pay on the contractually defined date.

For 2025, the inflation measure used in the COLA calculation increased by 4.5% over the relevant 12-month period. That result meets the contract’s trigger for a 4.5% COLA, so the 2025 COLA is 4.5%. The higher percentages would require a larger inflation reading or a different contractual trigger, which did not occur for 2025.

As a result, all bargaining-unit members receive a 4.5% increase to base pay, effective on the date specified in the CBA.