The purpose of cost-of-living adjustments (COLA) is vitally
important. COLA is supposed to protect our general wage increases
from being eaten up by inflation, so that we can gain more
purchasing power, rather than merely tread water or even sink.
But in GE, what we have is better described as DIET COLA.
Thats because the formula by which our COLA is calculated (one
cent for each 0.11% rise in the Consumer Price Index) protects us
against less than half of the effects of price increases.
Having no COLA at all for the last four months of the Contract has
now brought our overall level of protection against inflation down
to about 41%