What is COLA?
The pattern agreement reactivates a Cost of Living Allowance (COLA) that is directly tied to the rate of inflation. COLA guards workers’ wages and purchasing power against rising consumer costs, including food and energy. Quarterly COLA adjustments will start in December 2024. Members at top of scale will receive 7 COLA adjustments during the life of the pattern agreement.
COLA is tied to the actual inflation rate and is superior to the previous lump sum Inflation Protection Bonus (known as the Christmas bonus) that members received the last two Decembers of the prior collective agreement. As an example, COLA is included in the calculation of overtime, jury duty, holiday with pay, vacation pay, and bereavement. Credible forecasts predict an inflation rate of approximately 2.5%, per year, in the coming years. This equates to a $1.61/hour accumulated COLA by the end of the contract – which is in addition to other negotiated pay increases.
|
COLA accumulation forecast based on 2.5% inflation |
| $0.54 (June 2025) |
| $1.15 (December 2025) |
| $1.61 (June 2026) |
For more information, watch Unifor's video on what COLA is and how it works.