"We didn't spend a cent more than what was offered to ATU Local 508 on February 23.
Don't be distracted by the shiny $4,000 lump sum payment in year one of the deal; it's not as attractive as it looks. Imagine you took out a five-year loan; you have several repayment options. You can choose to spread out the loan amount over the five-years, but you end up paying more in interest. Or you can put more money down at the beginning of the loan to reduce the principle and save interest over the term.
The second option is the one selected by ATU Local 508. They chose to receive more money upfront, which means they will receive less over the span of the contract. The impact on HRM is a positive one; we spend less overall by giving more money up front, thereby reducing the compounding effect on annual raises in year's two through five of the contract.
In addition, any ATU employee hired from this day forward will not receive the $4,000 lump sum payment. If the deal had included a percentage wage increase instead in year one, they would have received that increase, however small."