November/December 2016 Issue

Also in this issue: Seventh Circuit Sides with Cities on Taxicab Deregulation     |     Federal Court Upholds a Provision in Wisconsin’s Right-To-Work Law     |     Responding to Requests for Records under the Public Records Law     |     Supreme Court To Hear Case on Whether Internal Management Committee Meetings Are Subject to Open Records Law

WERC Announces Revised CPI-U

Douglas E. Witte | 10.31.16

CPI‑U REVISED for Bargaining Agreements Beginning January 1, 2017

On November 4, 2016, the Wisconsin Employment Relations Commission (WERC) published a revision to the Department of Revenue’s calculation of the applicable CPI‑U. This is a result of the Bureau of Labor Statistics (BLS) releasing four months of revisions due to an error it reported in October and described as a problem in the ​“indexes for prescription drugs… published for May 2016 through August 2016, which affected the U.S. All items index.” 

After reviewing all of the previously published rates, the only one affected by the revised BLS index is the one calculated for collective bargaining agreements with a beginning date of January 1, 2017. When originally reported, the cap was .68%. It has now been reduced to .67%.

If you are still bargaining to reach an agreement effective January 1, 2017, use the new CPI‑U data. If the parties to such an agreement have previously settled for a stated base wage increase above .67%, they may wish to consult an attorney or the WERC to determine the potential impact. 

The relevant portion of the WERC’s table is reproduced below: 

Consumer Price Index Calculation Chart (updated last on 11−07−16)

The Wisconsin Department of Revenue (DOR) has advised the Wisconsin Employment Relations Commission (WERC) that the CPI‑U increase applicable to one year collective bargaining agreements with a term beginning on the following dates is as noted in the corresponding column in the chart below. 

*Revised 11/4/2016.

—Douglas E. Witte