I haven't seen the proposal, but if it says that wages remain flat until 2011, and inflation is 3% per year, then you're talking about a 23% increase in the cost of living, not 21%. (That's 1.03^7) Do not forget the power of compounding.Bob Owens said:Inflation has a thirty year average of 3% per year, so by 2011 you can figure that in addtion to the cuts you are about to take by the time contract is renegotiable you will have lost an additional 21% on top of what you have already lost!
In any case, that translates to a loss of 18.7% in purchasing power, not 21%. (that's 0.23/1.23)
Doesn't matter, though...in the end I doubt the vote will make a difference either way.