The terms of the last collective agreement provided wage and benefits have resulted in costs in the final year of the contract of: Average Hourly Wage Rate: $30.00 Wage Impacted Benefits: $ 4.50 Non-Wage Impacted Benefits: $ 3.00 Total Compensation Rate: $37.50 These numbers will be used as the base year for future calculations.

Union Proposals General wage increase to all job classifications - 20%

1. Jim will need to calculate the impact of the 20% wage increase proposed by the union. In order to do this he will have to make the following calculations:- a-show the impact on AHWR b-show the impact on WIB c-show the impact on NWIB d-calculate the new TCR for Wilson Bros in the first year of the new agreement if the company actually agreed to a 20% wage proposal as presented by the union. (5 marks)

2. Jim will need to calculate the impact of the safety boot and pension proposal on the non-wage impacted benefit calculation in the first year of the new agreement. He will assume each employee works a 40-hour week, 52 weeks per year. Calculate the new non-wage impacted benefit (NWIB that would result from accepting the unions proposals)? (5 marks) Add new: Pension Plan Company Contribution of $500,000 in the first year of the new collective agreement. Add new: Safety Boots Requirement, Company Paid, $50.00 per year per employee.