Does COLA get added to my base hourly rate?

COLA adjustments generally fold into your base rate so they compound with future raises, but the exact application is set in the National Master. Ask TeamstersGPT for the current COLA article and how it applies to your classification.

How often is COLA paid?

COLA is measured and paid on the schedule written into the National Master, typically tied to a periodic inflation reading. Ask TeamstersGPT for the exact measurement dates and payout schedule in the current contract.

How COLA works in the UPS Teamsters contract

The cost-of-living adjustment (COLA) ties part of your raise to inflation, on top of the fixed general wage increases written into the contract. It was restored in the prior National Master after years without it, which is why COLA mechanics are a closely watched 2028 issue. Here's how the current language works.

What COLA is

COLA is an inflation-linked raise that comes on top of the contract's scheduled general wage increases (GWI). Where GWI is a fixed amount set in advance, COLA varies with the cost of living — it's designed to protect your real wages when prices rise faster than the fixed raises anticipated.

COLA increases, once triggered, generally fold into your base rate, so they compound with future raises. Ask TeamstersGPT for the exact article and how COLA is applied to your classification.

How the COLA formula works

The contract ties COLA to a measure of inflation (typically the Consumer Price Index) over a set period, then converts that into a cents-per-hour adjustment using a formula and rounding rules written into the National Master. There's usually a trigger threshold and a fixed schedule for when each adjustment is measured and paid.

Because the index, timing, and rounding all matter to the final number, the dependable way to see the current formula and payout dates is to ask TeamstersGPT — it pulls the exact COLA language with the article cited.

COLA vs. general wage increases

General wage increases are the across-the-board raises you can count on regardless of inflation; COLA is the variable top-up that kicks in when inflation runs hot. Together they determine your total raise in any given year of the contract.

Understanding both is essential before 2028: a proposal can look strong on headline GWI while having a weak COLA trigger, or vice versa. Knowing today's formula lets you judge the real value of any offer.

Why COLA matters in 2028

After a long stretch without cost-of-living protection, COLA's return in the prior contract was a major win — but how strong the trigger and formula are determines whether it actually keeps pace with inflation.

Expect COLA strength to be a live 2028 issue. The baseline for that debate is the existing formula, so members who understand the current COLA language are best positioned to weigh what a new deal offers.

Frequently asked questions

Does COLA get added to my base hourly rate?: COLA adjustments generally fold into your base rate so they compound with future raises, but the exact application is set in the National Master. Ask TeamstersGPT for the current COLA article and how it applies to your classification.
How often is COLA paid?: COLA is measured and paid on the schedule written into the National Master, typically tied to a periodic inflation reading. Ask TeamstersGPT for the exact measurement dates and payout schedule in the current contract.

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