Severance Pay Essay

In no particular order, the first negotiated benefit my be income maintenance. According to Carrell & Hearvin (2013), income maintenance provisions have become a common negotiation factor in collective bargaining agreements. The plans are negotiable and may typically include severance pay, supplemental unemployment, and wage employment. An example of an income protection plan is severance pay, which is also known as dismissal pay. A severance is provided to employees who have been permanently terminated from the job in which it is not their fault for the dismissal (Carrell & Hearvin, 2013). The purpose of severance pay is to aid in the loss of income due to a plant closing, a merger, and subcontracting work. Another negotiated benefit is employee …show more content…
Pay for time not worked is another negotiated benefit, which is one of the most sought-after employee benefits by union members. It has been stated that the time-off with- pay aspect of labor agreements may include holidays, vacations, funeral leave, and maternity leave. An example of this benefit is sick leave. Sick leave is intended to provide for a continuation of employment when an employee is physically unable to report for work (Carrell & Hearvin, 2013). It has been suggested that the majority of all labor agreements provide a specific work schedule and require premium pay for hours worked beyond the normal schedule (Carrell & Hearvin, 2013). Also, overtime is provided on a daily basis for time over eight hours. The additional pay is known as penalty pay and it intended to discourage employers from requiring employees to work additional hours and weekends. A shift differential is an example of premium pay. Shift differentials are “negotiated additional hourly rates of pay provided to employees” (Carrell & Hearvin, 2013, p. 312) who work hours that are not