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COLA - New Jersey vs. Texas

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  • COLA - New Jersey vs. Texas

    Scenario:
    A Houston,Tx based aircraft mechanic working at Bush intercontinental Airport for a major airline earns a base salary of aprrox. $70,000 per year.
    A Newark,NJ based aircraft mechanic working at Newark Libery International Airport working for the same major airline earns the same salary.

    Point:
    How is the same salary classification concept justifiable or fair ?
    When according to CNNmoney's COLA calculator: food & groceries cost 42% more and housing a WHOPPING 141% more to live in NJ compare to TX.

    There must be some kind of COLA override for NJ employees.

    Do u agree ? Can u offer advice on the subject matter ?

    Thank You.

    Frank


    (read below cola calculator...)

    (or google it .... cola - cnn)

    SALARY COMPARISON
    About this calculator:

    • Using data provided by researchers at ACCRA, Inc., we compare key expenses in dozens of major cities. Costs include housing, utilities, transportation and health care.


    Salary in Houston TX:
    $70,000
    Comparable salary in Newark-Elizabeth NJ:
    $103,225.37

    If you move from Houston TX to Newark-Elizabeth NJ...

    Groceries will cost: 42.89% more
    Housing will cost: 141.891% more
    Utilities will cost: 0.092% more
    Transportation will cost: 9.534% more
    Healthcare will cost: 6.581% more
    Last edited by cbg; 02-16-2008, 04:50 AM.

  • #2
    There is no law in any state that requires COLA adjustments.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

    Comment


    • #3
      Maybe it's time we propose it.

      Comment


      • #4
        Originally posted by francucio View Post
        Maybe it's time we propose it.
        According to salary.com (and my experience is that their salary ranges are inflated across the board), 25% of aircraft mechanics in Newark make $73K or less, 75% make $95K or less. The figures for Houston are $65K and $84K, respectively.

        Looks like the folks in Houston should take a pay cut if they are making the same as someone in Newark.

        That is a call that is up to the company and the folks that agree to work for them (or not) and not something that should be regulated by the government.
        Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

        Comment


        • #5
          Maybe some of those nice New Jersey employees should apply at Bush in Houston. It's not a bad place to live! And it is well known that Houston has a (relatively) low cost of living compared to many other parts of the country. Someone's got to pay us to live with 99% humidity 99% of the time *Ü* with two seasons -- hot and not quite so hot.

          One reason the salaries could be "higher" in Houston is it could be harder to find qualified airline mechanics in Houston than in NJ such that it forces the Houston salaries to be higher. It could be that mechanics in NJ are willing to accept "less" because it allows them to be nearer NYC or multiple larger airports, etc. Or because they were born and raised in NJ and don't want to move somewhere else even if the pay is "better".

          There are some motivations to where you work that can't be given a value in the whole pay spectrum. An employer can't take into account every little detail when setting pay. Unless the NJ employees are willing to walk off the job over this issue to get the employers' attention, I don't imagine it will change. And even then the change may not be positive!

          Comment


          • #6
            I don't understand why we're getting into "salary ranges", that's not what i'm talking about.
            Whatever the company decides to pay their mechanics is a collective bargining agreement between management and it's union - FINE!
            Whether it's 60K, 70K, 100k - salary range is not the issue.
            Case point: How can you simply ignore the FACT that places like New York/New Jersey are one of the most expensive place to live in the U.S.A and not consider a "cost-of-living" adjustment to the agreed base salary. Everything costs three times more in New York Area than places like houston, Texas. It's factual.
            For instance cost of housing, a cape code in Houston can cost u $110,000, the same exact cape code on the same exact lot costs $550,000 in New York Area. How is a "cola" adjustment to base salary not justifiable.
            Moving is not an answer. New York Area has three major airports that need mechanics - they can't all move!

            Comment


            • #7
              No one said it's not justifiable.

              We said it's not required by law.

              There's a difference.
              The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

              Comment


              • #8
                "Whatever the company decides to pay their mechanics is a collective bargining agreement between management and it's union - FINE"

                Well if that is how it is currently setup, then the Union needs to take it up with management and needs to build a cost of living adjustment into the salary formula based on what part of the country the employee is in at the next open negotiation. If the Union isn't willing to do so, then take it up with them. For some reason they either have not thought about it or have tried to negotiate it and it hasn't passed negotiations.

                Are the Houston employees part of the Union? Since Texas is a "right to work" state, I know they can not be forced to be part of the Union.

                But like cbg stated, there are no laws against doing exactly what your company is doing...fair or not.

                Comment


                • #9
                  Originally posted by francucio View Post
                  I don't understand why we're getting into "salary ranges", that's not what i'm talking about.
                  Whatever the company decides to pay their mechanics is a collective bargining agreement between management and it's union - FINE!
                  Whether it's 60K, 70K, 100k - salary range is not the issue.
                  Case point: How can you simply ignore the FACT that places like New York/New Jersey are one of the most expensive place to live in the U.S.A and not consider a "cost-of-living" adjustment to the agreed base salary. Everything costs three times more in New York Area than places like houston, Texas. It's factual.
                  For instance cost of housing, a cape code in Houston can cost u $110,000, the same exact cape code on the same exact lot costs $550,000 in New York Area. How is a "cola" adjustment to base salary not justifiable.
                  Moving is not an answer. New York Area has three major airports that need mechanics - they can't all move!
                  I fully understand the difference in the cost of living between the NYC area and Texas.

                  The company is either overpaying the folks in Texas or underpaying those in Newark. Take your choice.
                  Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

                  Comment


                  • #10
                    We're union hourly employees...we all get paid the SAME per hour throughout the system. That's exactly what makes it unfair !
                    Therefore, an override (COLA) would make it fair to high cost of living cities, ie NYC/NJ.
                    Follow me.

                    Comment


                    • #11
                      We follow you. The problem is there is nothing illegal being done when a COLA isn't being given - they are not required by law.
                      Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                      Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                      Comment


                      • #12
                        We understand what you're saying. We agree it's not fair.

                        But it is not illegal.
                        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

                        Comment

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