A Brief Note On Wage And Salary Issue Essay
Carrell, M., & Heavrin, C. (2010). Wage and Salary Issue. In Labor relations and Collective
Bargaining: Cases, practice, and law (9th ed., pp. 327-328). Upper Saddle River, New Jersey: Prentice Hall.
In this section of the book, we look into COLAs (Cost of Living Adjustments), in which unions have for years emphasized the need for COLAs during the life of an agreement. The problem expressed is that unions and employers both feared that COLAs would include pay cuts because the consumer index declined. There are reasons for the decline in the use of COLA provisions that includes the administrative expense for employers to make frequent adjustments in wage rates as specified in the COLAs and the annual base wage adjustments that are in most multiyear contracts. This article states that both labor and management negotiators are carefully specifying exact provisions during the agreement. Several issues such as inflation index, when the increase is to be provided, changing the base pay, and COLA maximums cause conflict with the COLA. (Carrell, 2010)
Bradford, Hazel. "State funds curb COLAs to relieve pension burden; Billions in savings
Achieved quicker than other strategies." Business Insurance 18 June 2012: 0016.
Academic OneFile. Web. 1 Nov. 2015.
This article suggested that state funds reduce COLAs can relieve stress from pension burdens. There are also billions of dollars in savings that is used to quickly relive the stress from the pension…