Pete makes $30 an hour or $62,400 a year.
He lost 3 sick and a holiday = $960
He lost a Holiday bonus (1 week) = $1200
He lost his end of year 401k contribution 2% = $1248
He lost his performance bonus 2% = $1248
So far this year Pete lost $4656 excluding increased health care costs and loss of overtime.
Union dues would have been 1.7% or $1061 a year.
If Pete had a contract he would not have lost a penny.
Pete’s dues would take more than 4 years to catch up to the loss he suffered due to these cuts in the first year.
This is what 4 years looks like with a 3% raise every year.
Cuts Union dues (tax deductible)
Year 1 $4656 Year 1 $1601
Year 2 $4796 Year 2 $1649
Year 3 $4940 Year 3 $1698
Year 4 $5088 Year 4 $1749
Cost of cut backs over 4 years = $19,480
Cost of union representation over 4 years = $6,697
Pete lost $12,783 over 4 years for not joining a union.