this post was submitted on 31 Dec 2023
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I’m not the person you replied to, but I’ll take a stab.
@cmbabul stated in GP that they hand out raises for exceptional work of no more than 3% per year.
So, to recap in a piecemeal fashion, we’re talking about:
You saw this and ran with it. While doing so, you changed the premise to:
On top of that, presumably, because inflation currently exceeds 3% and has well exceeded 3% for almost the last three years, you changed the premise somewhat more into a career’s length timeframe.
The average inflation rate for the last 50 years is 3.8% per year,
Even when looking at a break-even inflation rate for the last 30 years, we’re looking at 2.40%, so we’re talking about a .60% pay increase. No wonder that this doesn’t impress @bunchofnumbers.
Never mind all that, though. I’m more interested in why you decided to change that premise.
I didn't change the premise, we're talking about work so you need to look long term not just over two years. That's 3%/year if you keep the same job from the beginning of your career to the end of it, that means getting 3% even during the years where inflation is under 2%, which people don't take into consideration since it the last few years are fresh in their memory and it makes 3% seem like a bad deal.
As I mentioned a guaranteed 3% would be better than most collective agreements. I've been under 6 of 7 of them with 3 different major employers and most times when inflation was normal our raises were at 2% or even a bit under that.
We haven't taken the seniority pay rate increases into consideration either, only the employees at the max step would be at 3%/year max.