Estimating the retroactive pay to be given to the Welfare Fund

Total Giveback = $28.6 Million, calculated as follows

Year One: $12.6 million

The proposed deal requires an $800 per employee payment to the WF.

There are 15,702 active employees represented by the PSC according to its most recent (2004/05) Labor Dept filing.

Thus, the to tal retroactive payment to the WF from employees is $12.6 million (15,702 employees X $800/employee).

(Note: A more precise calculation requires knowledge of the 2005/06 employment to tals, and pro rata adjustments of fees for adjuncts, neither of which have been published by the PSC)

Year Two: $16.0 million

The proposed deal requires that 2% of each employee's base pay go to the WF.

There are 15,702 active employees represented by the PSC, according to its most recent (2004/05) Labor Dept filing.

The average salary of active employees can be estimated from knowledge that the PSC collects about 1% of employees' salaries as dues, and that the to tal dues collection from 15,702 active employees is $7,989,160. (This figure excludes retirees dues, @ $71 per retiree.) Thus, the average dues paid by each active employee is $509 (= $7,989,160 to tal dues /15,702 active employees). If that average dues payment represents 1% of an employee's salary, then the average salary is $50,900 (= $509 / 0.01).

Thus, the to tal retroactive payment to the WF in the second contract year is $16.0 million , based on a 2% payment from the average salary for each of 15,702 employees (=15,702 employees X $50,900 average salary X 0.02).

Total for Year One and Year Two : $12.6 million + $16.0 million = $28.6 million