When unions get ready for bargaining, we tend to look at the wage scale in our existing contract and think something like, “Let’s open with a proposal for a 5 percent raise every year, and maybe eventually we’ll settle at 3.75 percent.”

This type of proposal was made out of habit when inflation was around 2 percent. While that may seem like a logical way to approach negotiations, you’re making a big mistake if you don’t take a closer look at the numbers.

The error that many bargaining teams make is not reviewing the cost of living each of the previous five years. Because of extreme inflation during the last five years, minimum increases of as much as 10 percent may be needed to restore purchasing power.

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