Exercise - Wage Provisions

Complete the following Chapter 7 exercise in Labor Relations and Collective Bargaining (Instructor's Guide, Carrell &Heavrin, 2013). Your results for this exercise are due by the end of module 6. Post your findings following the directions below during week 6.
Wage Provisions

The purpose of this exercise is to gain practical insight into the necessity of using precise language when drafting a contract. Your task is to first choose a side: labor or management; then write a mutually agreeable contract term using these scenarios:

1. COLA provision for a three-year contract

2. Profit-sharing in a small engineering firm

3. Two-tier wage system for a teacher's contract

4. A 0-3-3 deferred wage increase

5. A lump-sum payment of $2,000 to all eligible unit employees

Conduct research to find out what the average or common provision of each type below is within your region. Prepare the contract provision.

1. Issues for a COLA provision should include the following: inflation index; when increases are to be provided; change in base pay, COLA maximums.

2. Issues for a profit-sharing plan are: Is all of the profit distributed to employees or just some percentage; does the profit sharing substitute for COLA and other wage increases; will profits be distributed in stock as well as wages?

3. Issues for a two-tier wage system are: how far apart will the issues of the two tiers be; will the lower tier ever merge into the higher tier; if so, when; how will the employer avoid dissatisfaction from the lower tier employees on being paid less for the same work?

4. Issues for a 0-3-3 central: union member morale at start, end; effect on base; advantage to management; exactly when paid and exact amount.

5. Issues for a $2,000.00 lump sum: exactly who is eligible, partial payment for new employees.