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MAJOR
COLLECTIVE
BARGAINING
AGREEMENTS
DEFERRED WAGE
INCREASE
and
ESCALATOR
CLAUSES
Bulletin No. 1425-4
vrssr'
UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STATISTICS
Arthur M. Ross, Commissioner
MAJOR
COLLECTIVE
BARGAINING
AGREEMENTS
DEFERRED WADE
INCREASE
and
ESCALATOR
CLAUSES
Bdeta ft. 1425-4
January 1966
UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STA TISTICS
Arthur M. Ross, Commissioner
For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C., 20402 - Price 40 cents
Preface
This is the fourth bulletin in a comprehensive series of studies by the
Bureau of Labor Statistics, surveying the entire scope of the collective bargaining
agreement. Previous reports in the series are listed on the last page.
This study of the mechanics of deferred wage increase clauses and
escalator clauses is also the first part of a systematic analysis of the broad
and important issue of wage determination and administration under collective
bargaining. Subsequent studies will cover such matters as job evaluation, incentive
systems, individual wage adjustments, etc. Current data on the prevalence of
deferred wage increase and escalator clauses in major agreements are issued
annually by the Bureau.
The studies in the series are based on all agreements in the United States
covering 1,000 workers or more and available to the Bureau, exclusive of
government, railroad, and airline agreements. They account for almost half of
the estimated coverage of all agreements, outside of the excluded industries.
The studies, thus, do not reflect practices in small collective bargaining situations
or in nonunion companies. All agreements are part of the file of current
agreements maintained by the Bureau for public and government use, in accord
ance with section 211 of the Labor Management Relations Act, 1947.
The clauses quoted in this report are not intended as model or recom
mended clauses. The classification and interpretation of clauses, it must be
emphasized, reflect the understanding of outsiders and do not necessarily reflect
the understanding of the parties who negotiated the clauses.
The Bulletin 1425 series is part of the program of the Bureau's Division
of Industrial and Labor Relations, Joseph W. Bloch, Chief, which is under the
general direction of L. R. Linsenmayer, Assistant Commissioner for Wages and
Industrial Relations.
This bulletin, the first of several dealing with wage
administration issues, was prepared by William F. Hahn under the immediate
supervision of L. A. O'Donnell and the general supervision of Harry P. Cohany.
in
Contents
Page
Chapter I.
Introduction_________________________________________________________
1
Scope of study___________________________________________________________-____
Related studies in series------------------------------------------------------------------------------Prevalence in 1963___________________________________________________________
3
3
4
Chapter II. Deferred wage increase clauses---------------------------------------------------Types of wage formulas--------------------------------------------------------------------------------Cents-per-hour increases—_______________________________________________
Percentage wage increases_______________
Combination cents-per-hour and percentage increase__________________
Conditional wage increases__________________________________________________
Conditional increases only_______________________________________________
Conditional and deferred increases______________________________________
Diversions from deferred wage increases______________________ -___________
7
9
9
12
13
15
15
18
20
Chapter III. Escalator clauses_________________________________________________
Election of the price index___________________________________________________
24
24
Availability and revision of the index_______________________________________
Frequency of index review---------------------------------------------------------------------------Quarterly----------------------------------------------------------------------------------------------------
25
26
26
Other timing of review------------------------------------------------------------------------------
28
Selected formulas-------------------------------------------------------------------------------------Limits on adjustments_______________________________________________________
Status of past allowances_________________________________________________
Cost-of-living allowance and computation of overtime
and fringe benefits__________________________________________________________
Diversion from cost-of-living adjustment__________
31
34
37
38
40
T ables:
1. Automatic wage adjustment provisions in major collective
bargaining agreements by industry, 1963_____________________________
2. Formula for deferred wage increases in major collective
bargaining agreements by industry, 1963______________________________
3. Frequency of cost-of-living review in major collective
bargaining agreements by industry, 1963______________________________
4. Diversion from cost-of-living increases in major collective
bargaining agreements by industry, 1963_____________________________
42
Appendixes:
A. Consumer price index— U.S. city average for urban wage
earners and clerical workers, all item s_____________________________
B. Selected deferred wage increase clauses reproduced in full___________
C. Selected cost-of-living clauses reproduced in full_____________________
D. Identification of clauses_________________________________________________
43
45
51
61
v
6
23
42
Major Collective Bargaining Agreements
D e fe r r e d W a g e In c r e a se a n d E sc a la to r C la u se s
Chapter I. Introduction
General wage adjustments during the life of a long-term agreement may
be provided for in a variety of ways. Permissive clauses empower the union
or the employer to reopen wage negotiations at any time during the contract life,
at specific dates set in the agreement, or upon a change in such factors as the
cost of living, company or industry financial conditions, an area1s prevailing
wages, or general economic conditions. Under these clauses, there is a commit
ment only to negotiate. Automatic provisions, on the other hand, either provide
for predetermined wage adjustments to become effective at scheduled times during
the agreement term, or condition a fixed wage change upon stipulated changes
in the cost of living, company profits, area and industry wages, and commodity
prices, as well as other economic factors. By placing future wage adjustments
under a formula, automatic clauses serve several functions. They not only
determine the precise position of wages in relation to components enumerated
in the formula, but, in making long-term agreements feasible, they reduce the
possibility of conflict over annual or more frequent wage negotiations. In this
latter role, they aid in long range planning and pricing, and save the time and
energy of the parties. They may also provide the criteria for wage settlement
when the contract does expire.
Two types of automatic wage provisions— deferred wage increase clauses
and escalator clauses— are analyzed in this report. Deferred or ,,installment,,
clauses guarantee one or more wage increases during the term of the agreement.
In addition to noting the frequency of the increases provided for in the agreements,
this report examines the various categories of deferred wage formulas, their
prevalence, coverage, and application. The practice of diverting portions of
future wage increases to other purposes is also examined. The analysis of deferred
wages includes conditional wage increase provisions which make an increase
contingent upon results of a wage survey, increases negotiated elsewhere in the
industry, changes in legal minimums, or other developments.
For many workers, deferred wage increases are supplemented by costof-living adjustments. These allowances are provided for in escalator clauses,
which relate wage levels to living costs as measured by a price index, typically
the Bureau of Labor Statistics Consumer Price Index. Since the escalator is
designed to stabilize ’’real w ages,!' agreements in which escalation and deferred
wage increases are combined have the effect generally of assuring a rise in real
wages during the life of the contract. Unlike the deferred increases, the costs of
escalation arrangements are unpredictable. In this report, all major features
of escalator clauses are examined and, where feasible, their prevalence measured.
Background
Although changes in the cost of living were used in wage determination by
Federal boards and commissions around the turn of the century, the practice
of relating wages specifically to the cost of living did not become relatively
common until the period of the First World War and after. The spread of this
practice led the Bureau of Labor Statistics in 1925 to publish a special bulletin
1
2
dealing with the use of cost-of-living data in wage determination. 1 In the ensuing
years, however, the practice declined. Organized labor maintained a policy of
general opposition to the principle of basing wages on the current level of prices.
Unions felt that this approach served merely to freeze the position of real wages.
President John L. Lewis of the CIO, addressing a convention of that organization
in 1939, 12 had this to say on the subject of gearing wages to the cost of living:
It is economically unsound, socially unjust, and politically unwise. Labor must unceasingly
be on guard against the acceptance of this philosophy, because I proclaim that the position of labor
in our economy is not ideal, or just, or satisfactory. Labor wants a continuously increasing partici
pation in the increased productivity of modem industry, and a larger share in the bounties of our
national wealth.
Many employers and employer organizations were similarly opposed to the prac
tice. The argument most often voiced was that its use would result in labor
disputes if prices fell and management attempted wage cuts.
In spite of continued opposition in principle, when substantial upward
price movements occurred, a tie between prices and wages became desirable.
The use of cost-of-living escalator clauses, however, diminished in frequency
during World War II as a result of a national policy which denied general wage
increases to meet rising p rices.3 In their place, contracts with general wage
reopening provisions were negotiated. Under these provisions the parties upon
due notice, or on a date cited in the agreement, were free to discuss the wage
structure, including adjustments based on changes in the cost of living.
A major development in the history of automatic wage escalation occurred
in 1948 when General Motors and the United Automobile Workers concluded a
contract which contained a formal escalator clause. Because of the number of
workers affected and the position of the company in the national economy, this
adoption of formal escalation was highly significant. The same contract introduced
the concept of the annual improvement factor, that is, a deferred wage increase
designed to reflect annual increases in national productivity. When the parties
retained the automatic wage provisions in their precedent-setting 5-year contract
in 1950, similar clauses were quickly adopted throughout much of the UAW
jurisdiction.
Shortly afterward, actual and anticipated price spirals resulting from
the Korean conflict produced a rapid spread of escalator clauses. 4 From slightly
more than 800,000 workers under escalation in September 1950, coverage rose
to 3.5 million in 2 years. In some situations, deferred increases were also
provided, although generally without reference to productivity factors. With the
halt of rapid price movements after the Korean emergency, interest in escalation
again lagged. It was not revived until the period 1955—56 when long-term settle
ments were reached in practically all .major organized industries. A high pro
1 Elma B. Carr, The Use of Cost-of-Living Figures in Wage Adjustments (BLS Bulletin 369, 1925).
2 Daily Proceedings of the Second Constitutional Convention of the Congress of Industrial Organizations, San
Francisco, C a lif., Oct. 10—13, 1939, p. 173.
3 The National War Labor Board in General Order 22 (Dec. 8 , 1942) provided that no cost-of-living clause
should be operative where an adjustment "would result in rates in excess of 15 percent above the average straight-time
hourly rates or equivalent rates prevailing in Jan. 1, 1941."
4 The wage-control policy established by the Wage Stabilization Board during the Korean emergency sanctioned
wage escalation. By General Wage Regulation 8 , the board authorized general wage increases in accordance with
consumer price changes as reflected by an acceptable index. The board later provided that "only the Bureau of
Labor Statistics National Consumer Price Index for Moderate-Income Families in Large Cities (either adjusted or old
series), will be acceptable after Oct. 4, 1951, without prior board approval."
3
portion of major agreements included both escalation and deferred increase
provisions, among them agreements in the auto, steel, electrical equipment,
meatpacking, trucking, and railroad industries. Escalation continued in wide
spread use until 1959, covering approximately 4 million workers under major
agreements between 1957 and early 1959. In I960, electrical equipment and
railroads, together accounting for about a million workers, discontinued escalation.
That same year saw a spread in the practice of placing a maximum on the amount
of escalator increases. Steel ceased escalation review in 1962. By 1963, escala
tion coverage had shrunk to 1.8 million. In recent years, the number of agree
ments incorporating escalation for the first time has been negligible; 5 this may
be due to the relative stability of prices.
In contrast, long-term contracts specifying deferred wage increases
continue to be popular, and their acceptance appears to be an established wage
policy in many industries. One noteworthy exception to this, however, occurred
in the basic steel industry which, in its 1962 and 1963 settlements, included no
provision for future wage rate increases.
Scope of Study
This study is based on an analysis of 1,800 collective bargaining agree
ments, each covering 1,000 workers or more, or virtually all agreements of
this size in the United States, exclusive of those in railroad and airline industries
and in government. The 7.6 million workers covered by these agreements account
for almost half of the total coverage of collective bargaining agreements outside
of the excluded industries. Manufacturing industries accounted for 1,032 agree
ments, covering 4.1 million workers; 768 agreements applied to 3.4 million
workers in nonmanufacturing establishments. (See table 1.)
Clauses included in this study were selected to illustrate the charac
teristics under consideration or the variety of ways in which negotiators have
adapted such arrangements to the particular situations. Minor editorial changes
were made where necessary to enhance clarity and irrelevant parts were omitted
where feasible. The clauses are numbered and the agreements from which they
have been selected are identified in appendix D. Appendix A gives the BL.S
Consumer Price Index on a 1947—49 and 1957—59 base for the annual periods
1962 through late 1965. In appendixes B and C, a number of deferred wage
increases and cost-of-living clauses are reproduced in their entirety to illustrate
how the various parts fit together.
Data on the prevalence of features considered in this report relate pri
marily to 1963. Wherever feasible, however, illustrative clauses were selected
from later agreements.
Related Studies in Series
Related aspects of wage determinations will be examined in other bulletins
which, along with this one, will make up a general study of wage administration
under collective bargaining. A later study of contract duration will cover clauses
providing for wage reopening during the term of the agreement.
5
Notable exceptions are: The 1963 agreement between the Machinists and the Boeing C o ., covering 40,000
workers; the Cessna Aircraft Co. —Machinists contract of 1964 covering 4,000 workers; and the agreement reached in
1964 between the Los Angeles County Painters and the Decorators Joint Committee, In c., and the Painters Union.
This latter agreement, covering 10,000 workers, is particularly noteworthy because of the rarity of escalation pro
visions in construction contracts.
4
Prevalence in 1963
Two-thirds of the 1,800 agreements analyzed, covering approximately
the same proportion of workers, contained provision for deferred wage increases
(table 1).
Escalation, on the other hand, was included in only 300 of the agree
ments, or 1 out of 6. The 1.8 million workers covered by escalation provisions
comprised approximately a fourth of the workers accounted for in the study.*7
Percent of—
Agreements
Deferred wage increase only-------Cost-of-living review only--------Cost-of-living review and
deferred wage increase------------No provision-----------------------------
Workers
52.4
1.9
45.8
14.8
30.9
22. 2
30. 9
1.0
Although all major industry groups were represented, most deferred
wage increase clauses were included in agreements in manufacturing, primarily
in transportation equipment, food and kindred products, machinery (except elec
trical), and electrical machinery. In nonmanufacturing, agreements in construc
tion, retail trade, and transportation showed the highest prevalence. Combined,
these seven industries encompassed more than 2 out of every 3 workers covered
by such provisions. Significant numbers of workers were also covered by agree
ments in apparel and mining (table 1).
Deferred wage increase provisions were combined with escalation in
15 percent of the agreements and covered 1.7 million workers. 8 Approximately
two-thirds of these agreements and seven-tenths of the workers were in manu
facturing. Transportation equipment was by far the primary source of agreements
with both provisions, accounting for over 65 percent of the workers in manufac
turing under such arrangements. Among nonmanufacturing industries, transpor
tation and retail trade accounted for all but a small percentage of such agreements
and workers. None of the 235 construction agreements included in the study
contained escalation provisions.
Only about 2 percent of the 1,800 agreements studied provided for escala
tion without including deferred wage increases. All but two of these contracts
were in manufacturing.
Over 100 national and international unions were collective bargaining
representatives for the 5.2 million workers in this study covered by deferred
wage provisions, escalator clauses, or both. A fourth of the unions were signatory
8 Included in deferred wage coverage are 28 agreements, covering 194,000 workers, which contained automatic
conditional wage provisions only.
7 Estimates of the total coverage of escalator clauses, including small establishments and unorganized white-collar
workers, are provided annually in the December issue of the Monthly Labor Review.
8 Deferred wage increases and/or cost-of-living review provisions are occasionally combined with wage reopeners,
which are not included in this study. For prevalence of wage reopeners in major agreements see."Major Agreement
Expirations and Reopenings in 1966," Monthly Labor Review, December 1965, pp. 1426—1437.
5
to 10 contracts or more incorporating escalator clauses, deferred wages, or
both; and of these only 7 negotiated 10 contracts or more with both types of
provisions. In terms of number of agreements negotiated, the following seven
unions were dominant:
Agreements with—
Deferred wage
increase and
cost-of-living
review________
Deferred wage
Cost-of-living
increase only____________ review only
(in thousands)
Union
Number of
agreements
148
114
85
70
59
54
47
Teamsters----------------------Automobile workers------Machinists--------------------Carpenters--------------------Hod carriers------------------Meat cutters------------------Retail clerks------------------
In numbers of
Number
49
81
26
Percent of
total studied
81
33.1
71.1
30.6
1.4
31.4
29.7
1
-
17
14
workers covered,
Number
12
40
62
54
35
29
Percent of
total studied Number
54.7
10.5
47.1
88.6
91.5
64.8
61.7
the following unions
Percent of
total studied
-
_
7
6.1
6
-
7.1
-
-
-
-
-
predominated:
________________________ Workers covered by— ________________________
Deferred wage
increase and
cost-of-living
________ review_______
Union
Automobile workers------------Teamsters-------------------------Carpenters-------------------------Machinists-------------------------Ladies' garment workers-----Hod carriers----------------------Electrical workers (IUE)------
Number of
workers under
all agreements
studied
862.0
701. 1
319.3
292.3
271.6
234.7
207.2
Deferred wage
Cost-of-living
increase only___________ review only______
(in thousands)
Number
Percent of
total studied
783.5
401.8
90.9
57.3
2.0
.6
170.7
-
58.4
-
44.4
-
21.4
Number
33.7
263.1
279.3
81.7
1 219.6
214.7
50.3
Percent of
total studied
3.9
37.5
87.5
27.9
80.9
91.5
72.5
Number
Percent of
total studied
15. 1
1.7
-
-
17.7
-
6.0
-
4.8
2.3
1 Includes 180,000 workers covered by automatic conditional wage provisions only.
Among other unions with significant coverage were the International
Longshoremen’ s Association, the Marine and Shipbuilding Workers, Bricklayers,
Iron Workers, and American Newspaper Guild. These together accounted for
a total of 51 agreements, all but 1 of "which contained deferred increases. Only
1 of the more than 20 Amalgamated Transit Union9 agreements in this study did
not include deferred increases, and two-thirds of them had escalator clauses as
well. Both types of provisions were~also incorporated in all but two agreements
signed by the United Packinghouse, Food and Allied Workers.
^ Prior to July 1964, Amalgamated Association of Street, Electric Railway and Motor Coach Employes of
America.
6
Table 1.
Autom atic Wage Adjustment P rov isio n s in M ajor C o lle ctive Bargaining A greem ents
by Industry, 1963
(W orkers in thousands)
N um ber studied
Industry
A gree
ments
D eferred wage
in cr e a s e and
c o s t -o f-liv in g
review
D e fe rre d wage
in cre a se only
W ork
ers
A gree
ments
W ork
e rs
A gree
m ents
W ork
e rs
C o s t-o f-liv in g
review only
A gree
m ents
W ork
ers
No p ro v isio n
A gree
m ents
W ork
e rs
1,800
7, 562.3
266
1,682.5
944
3 ,4 6 4.5
34
75.4
556
2, 340.0
M anufacturing------------------ ----------
1,032
4, 144.6
176
1, 159.7
477
1, 564.0
32
69.9
347
1, 351.1
Ordnance and a c c e s s o r ie s _________
F ood and kindred p ro d u c ts ...____ _
T o b a cco m anufactures
__
T extile m ill products______________
A p parel and other
finished p ro d u c ts ___
.
_
Lum ber and wood p rod ucts,
except furniture
F urniture and fix tu r e s -------------------P ap er and allied products
P rinting, publishing, and
a llied industries . .
—
C h em icals and a llied
p rod u cts_______________________
P etroleu m refining and
related industries
Rubber and m iscella n eou s
p la stics products
__
Leather and leather
p rod u cts.
.
__
Stone, cla y , and glass
products
___
__
P rim a ry m etal industries__ __ ____
F a b rica ted m etal p rod ucts_________
M ach in ery, except
e le c t r ic a l
—
E le c tr ic a l m achinery,
equipment, and su p p lies----- -------Transportation eq u ip m en t____ ____
Instruments and related
products
____
M iscellaneou s m anufacturing
industries
_ _
19
123
11
28
78.4
369.7
24.1
78.1
10
26
-
59.9
86.5
-
4
76
2
11
10.6
236.5
4.1
37.6
2
2
-
3.9
5.6
-
3
19
9
17
4.1
41.2
20.1
40.5
54
431.3
-
-
43
244.5
-
-
11
86.8
12
16
57
18.9
27.3
128.4
1
-
1.0
-
6
10
20
9.6
19.2
54.4
2
-
3.4
-
6
3
37
9.3
3.8
74.0
37
74.4
2
3.0
31
66.1
-
-
4
5.3
62
114.8
7
15.8
23
40.5
-
-
32
58.6
N onm anufacturing----------------------
A ll in d u stries.
____ _
Mining, crude p etroleum , and
natural gas p rod u ction ----------------T ra n sp orta tion 1 ___ _______________
C om m un ications_____ ___________
U tilities: E le c tr ic and g a s _______
W holesale trade
_ ______
Retail trade __________ __ __________
H otels and restaurants
S e rv ices
__
__ ___ ____
C onstruction .
... _ _ .
M iscella n eou s non
m anufacturing industries
19
50.1
-
-
1
1.0
-
_
18
49.1
25
110.5
1
4.0
12
60.1
-
-
12
46.5
22
75.2
-
-
13
60.0
-
_
9
15.3
32
109
55
118.0
600.2
135.0
1
6
11
1.2
9.6
23.3
23
22
20
98.5
41.1
34.1
2
4
4
2.4
6.4
12.1
6
77
20
15.9
543.2
65.5
97
263.4
27
140.6
45
70.8
8
19.0
17
33.0
100
123
401.5
982.9
13
65
31.5
770.0
59
39
281.7
156.6
1
6
1.0
14.8
27
13
87.4
41.5
22
45.2
5
12.2
13
27.1
-
-
4
6.0
9
17.7
1
1.3
4
10.3
1
1.5
3
4.6
768
3,4 1 7.7
90
522.8
467
1,900.5
2
5.5
209
988.9
20
109
81
86
15
117
38
64
235
238.8
703.5
513.0
206.0
28.4
311.8
177.8
231.4
963.5
1
52
3
30
4
-
2.1
437.5
3.9
72.4
7.0
-
10
43
10
27
11
74
32
46
213
198.5
203.2
56.3
69.0
23.0
207.2
142.5
144.1
855.5
_
2
_
_
_
_
_
_
_
_
5.5
_
_
_
9
14
71
59
1
11
6
14
22
38.2
62.8
457.1
137.0
1.5
26.8
35.3
80.3
108.0
3
43.5
“
1
1.5
-
-
2
42.0
-
1 E xcludes ra ilroa d and airlin e industries.
NOTE: B ecause of rounding,
sum s of individual item s m ay not equal totals.
Chapter II. Deferred Wage Increase Clauses
The standard introduction to annual improvement factor clauses nego
tiated by the UAW in the automobile industry states that:
The annual improvement factor provided herein recognizes that a continuing improvement in
the standard of living of employees depends upon technological progress, better tools, methods, pro
cesses and equipment, and a cooperative attitude on the part of all parties in such progress. It
further recognizes the principle that to produce more with the same amount of human effort is a
sound economic and social objective. ( 1)
Although a number of other contracts preface their deferred wage pro
visions with a statement of purpose, in most cases principles and purposes are
implied rather than specified in the agreement.
Undoubtedly, a major purpose
is to make long-term agreements acceptable to unions.
Reflecting the trend of the past decade to long-term agreements, the
great majority of the agreements included in this study were for durations in
excess of 2 years. 101 Long-term agreements, particularly those of 3 ye$rs or
longer, tend towards multiple deferred wage increases, usually scheduled an
nually. 11 A total of 667 agreements, or more than a third of those in this study,
provided two or more deferred increases. 12 Agreements of less than 2 years
duration commonly do not provide for deferred adjustments, or, if they do,
generally schedule a single deferred increase during the contract life. In 1961,
a fourth of the contracts with terms of less than 2 years included deferred
increases. 13
In the current study, the machinery, transportation equipment, trans
portation, and construction industries, where 3-year contracts were the norm,
accounted for slightly over half (53 percent) of the agreements which prescribed
multiple deferred increases.
On the other hand, deferred provisions in paper
and allied products and utilities industries, in which contracts of less than 2 years
are common, generally provided one adjustment during the term of the agreement.
The deferred wage increase is generally applicable to all workers
covered by the agreement.
A small number of contracts, however, limit the
wage increments to particular occupations or groups, as in the following examples.
In most cases, those excluded represented relatively small groups of workers.
(a) All markers, graders, and cutters shall be employed on a weekwoik basis and shall
receive, beginning with die workweek commencing June 1, 1964, not less than the following mini
mum wages:
Markers and graders------------------------------------------------------------------$105.00 per week
Cutters--------------------------------------------------------------------------------------- 95 .00 per week
(b) All special machine finishers and special machine operators, hand finishers, cleaners,
floorworkers and assorters shall be employed on a weekwork basis.
If the workers in the above crafts are employed in the manufacture of garments in the
quality group they shall receive, beginning with the workweek commencing June 1, 1964, not less
than the following minimum wages:
0 In 1961, only about 1 out of 8 major contracts had durations of less than 2 years. See Major Union Contracts
in the United States, 1961 (BLS Bulletin 1353, 1962), p. 7.
11 Agreements with deferred increases frequently, but not always, provide for a specific wage increase at the
time the contract goes into effect.
12 In addition, 28 agreements provided for conditional wage increases only, and 17 called for one or more
deferred adjustments as well as conditional increases.
13 BLS Bulletin 1353, op. cit. , p. 10.
7
8
Special machine finishers
and special machine operators-------------------Hand finishers-----------------------------------------------Cleaners, floorworkers,
and assorters------------------------------------------------
$61. 25 per week ($1.75 per hour).
57. 75 per week ($1. 65 per hour).
52. 50 per week
($1.50 per hour).
If the workers in the above crafts are employed in the manufacture of garments in the low
end group they shall receive, beginning with the workweek commencing June 1, 1964, not less than
the following minimum wages:
Special machine finishers
and special machine operators-------------------Hand finishers-----------------------------------------------Cleaners, floorworkers,
and assorters------------------------------------------------
$56. 00 per week ($1.60 per hour).
54. 25 per week ($1.55 per hour).
52. 50 per week
($1.50 per hour).
(c)
Workers employed in the crafts below shall work on a piecework basis and shall receive
not less than the following guaranteed minimum wages:
Beginning with the workweek commencing June 1, 1964:
Operators in the
quality group------------------- $1.90 per hour
Operators in the
low end group----------------1.75 per hour
Pressers in both the quality group
and low end group---------------------------------------2. 45 per hour
($ 66. 50 per week).
($61. 25 per week).
($85. 75 per week).
Beginning with die workweek commencing January 4, 1965:
Operators in the
quality group------------------- $1.95 per hour ($ 68. 25 per week).
Operators in the
low end group----------------1.80 per hour ($63. 00 per week).
Pressers in both the quality group
and low end group---------------------------------------2.45 per hour ($85. 75 per week).
*
*
(2)
s{e
Per hour—
Male Sales Clerks—
Commission Departments
Full-time employees:
H ire----------------------------------------6 months-------------------------------1 year---------------------------------------2 years-------------------------------------3 yearj-------------------------------------Plus 2 /2 percent commission.
Effective
Feb. 4, 1962
43-hour week
$1.03
1.10
1.16
1.23
1.29
Part-time employees:
Minimum rate as of Feb. 4, 1962
26 weeks of work thereafter------52 weeks of work thereafter------104 weeks of work thereafter-----156 w^eks of work thereafter-----Plus 2 72 percent commission.
Effective
Feb. 3, 1963
42-hour week
$1.07
1. 14
1.20
1.27
1.34
Effective
Feb. 2 , 1964
41-hour week
$ 1.11
1. 18
1.25
1.32
1.385
1.00
1.025
1.05
1. 10
1.15
Receiving Men
Full-time employees:
H ire----------------------------------------6 months---------------------------------12 months--------------------------------21 months--------------------------------30 months--------------------------------36 months---------------------------------
1.29
1.42
1.55
1.68
1.81
1.94
1.34
1.47
1.605
1.74
1.87
2.01
1.39
1.525
1.66
1.80
1.94
2.08 (3)
9
Types of Wage Formulas
A deferred increase may take the form of a cents-per-hour (flat sum)
addition to wages, a percentage adjustment, or a combination of both.
At the
same time, it may specify that the increase factor be applied uniformly to all
wage rates or on a graduated scale, with the amount of the increase factor
varying according to the employee's wage rate, job classification, or other
consideration.
Initially, the great majority of agreements with deferred wage provisions
provided cents-per-hour increases, uniformly applied.
This approach later
declined somewhat in relation to other methods, primarily because of concern
over the reduction in relative pay differentials between skilled and unskilled
workers under the uniform cents formula.
As a result, increased numbers of
contracts with percentage increases (often in combination with a cents-per-hour
floor) were adopted.
In this study, over 1 million workers were covered by
formulas of this type (table 2). The bulk of these workers were represented by
annual improvement plans which provided a cents-per-hour increase or percentage
of base rates, whichever was greater.
Another 1 V4 million were covered by
formulas designating cents increases varying by labor grade or other classifica
tion.
Both the percentage and variable cents-per-hour methods maintain occupa
tional pay differentials by granting higher paid workers proportionately larger
increases.
Cents-Per-Hour Increases. 14 Provisions for cents-per-hour adjustments
were found in over 85 percent of the 1,210 contracts with deferred provisions,
covering three-quarters of the workers (table 2).
Approximately 3 out of
every 4 of these contracts provided uniform application. Agreements with uniform
flat sum adjustments were more prevalent in nonmanufacturing industries than in
manufacturing, especially with the large number of such provisions in construction
agreements.
Ironworkers Wage Rate
24.
The wage rates for the various classifications of ironworkers for the term of this agree
ment shall be put into effect in the amount and on the dates prescribed in the following schedule:
______________ Per hour— _______________
June 1, 1963 June 1, 1964 June 1, 1965
Classification
Structural ironworkers-----------Ornamental ironworkers--------Layout ironworkers----------------Rodmen ironworkers -------------Reinforcing steelworkers-------Sheet bucker-ups------------------Sheeter ironworkers---------------Welders-------------------------------Riggers and machinery movers
Pushers or foremen----------------General forem en-------------------
$4.64
4.64
5.04
4. 64
4. 64
4.815
5.04
4. 64
4. 64
5.04
5.44
$4. 84
4. 84
5. 24
4. 84
4. 84
5.015
5. 24
4. 84
4. 84
5. 24
5. 64
$4.99
4. 99
5.39
4.99
4.99
5.165
5.39
4.99
4.99
5. 39
5.79
3.89
3.99
4.09
4.19
4.29
4. 39
4.09
4.19
4. 29
4. 39
4.49
4.59
4.24
4. 34
4.44
4. 54
4.64
4.74
Apprentices
First 6 months----------------------Second 6 months------------------Third 6 months---------------------Fourth 6 months--------------------Fifth 6 months---------------------Sixth 6 months----------------------
14 Includes also agreements which designated flat-sum increases on other than an hourly basis.
(4)
10
Significant numbers of agreements with uniform deferred provisions were
also found in other nonmanufacturing areas such as transportation (primarily
local and long distance trucking) and retail trade.
Mileage and Hourly Rates
Effective August 1, 1961, through July 31, 1964, the following schedules shall prevail:
Mileage:
Aug. 1, 1961, through July 31, 1962— 11.27 cents per mile.
Aug. 1, 1962, through July 31, 1963— 11.40 cents per mile.
Aug. 1, 1963, through July 31, 1964— 11.65 cents per mile.
(Other than pickup and delivery)
Hourly:
Aug.
Feb.
Aug.
Feb.
Aug.
Feb.
1, 1961, through Jan. 31, 1962— $2.54.
1, 1962, through July 31, 1962— $2.61.
1, 1962, through Jan. 31, 1963— $2.71.
1, 1963, through July 31, 1963— $2.78.
1, 1963, through Jan. 31, 1964— $2.83.
1, 1964, through July 31, 1964— $2.94.
*
(5)
Sje *
Wage Schedules
A.
A regular cleric is defined for purposes of this agreement as one who is regularly
employed 26 hours or more per week and shall be paid for the number of hours worked on the basis
of the following schedule of minimum rates:
For period Nov. 26, 1961
through Nov. 24, 1962
Effective
Nov. 25, 1962
40-hour
week
Effective
May 24, 1964
40-hour
week
40-hour
week
Hourly
0 to 6 months in industry------------6 months to 1 year in industry-----1 year to 18 months in industry----
$76.00
79.50
83.00
$1.90
1.99
2. 075
$80.00
83.50
87.00
$ 2.00
2.09
2. 175
$83.00
86. 50
90.00
$2,075
2.165
2. 25
18 months to 24 months
in industry------------------------------After 24 months in industry ---------
90.00
98.00
2.25
2. 45
94.00
102.00
2.35
2. 55
97.00
105.00
2.425
2.625
0 to 6 months in industry------------6 months to 1 year in industry-----1 year to 18 months in industry —
71.50
74.50
78.00
1.79
1.8625
1.95
75. 50
78.50
82.00
1.89
1.9625
2.05
78.50
81.50
85.00
1.965
2.0375
2.125
18 months to 24 months
in industry------------------------------After 24 months in industry---------
83.00
89.00
2. 075
2.225
87.00
93.00
2. 175
2.325
90.00
96.00
2.25
2.40
Hourly
Hourly
Male
Female
(6)
Among manufacturing industries , clauses providing for uniform incre;
generally read as follows:
Effective as of December 7, 1964, the basic hourly wage rate of each employee in the unit
represented by the union in the employ of the company on such date shall be increased 4 cents over
his rate prevailing immediately prior thereto. (7)
sje
9}e
sje
11
Effective March 16, 1964, all employees shall receive a general wage increase of 6 cents
per hour. This 6 cents shall be added to the 23 cents payroll add in effect prior to this date making
a total payroll add of 29 cents.
Effective August 31, 1964, the payroll add of 29 cents referred to above shall be incorporated
in the job rate structure and job rate progression schedules on the following basis:
(a) Timework rates— present job rate plus 29 cents equals new job rate.
(b) Piecework rates— present job rates plus 23. 2 cents at 100 percent of piecework rate
(job rate) but not to exceed 34.8 cents at 150 percent or greater.
per hour.
Effective March 17, 1965, all employees shall receive a general wage increase of 5 cents
This 5 cents shall be carried as a payroll add. ( 8)
ije
sje
Jje
Effective March 2, 1964, there shall be a 3-cent-per-hour general wage increase to be
applied as follows: (1) Such 3 cents shall be added to the hourly rates of timeworkers and employees
working on a guarantee; ( 2) in the case of pieceworkers all piece rates shall be increased by an
amount sufficient to increase the average of each piecework operation by 3 cents based on the average
for the fourth calendar quarter of 1963. (9)
* * *
All employees actively at work on February 4, 1965, will receive a 6-cent-per-hour increase
in wages, effective on that date. Those who on February 4, 1965, are in leave or layoff status, will
receive this increase in wages effective on the date of their return to active work status. Employees
who are still in the wage progression for their labor grade on the effective date of 1heir increase will
receive this 6-cent-per-hour increase to be added to their current rate of pay, without interruption of
their accumulation of checks toward advancement to the next higher step in their progression. All
new employees who may be hired after February 4, 1965, will receive this 6-cent general increase at
the completion of the final step in their wage progression. ( 10)
Approximately 1 out of 4 contracts specifying cents-per-hour adjustments
varied the amount of the increase, thereby retaining or enlarging the wage dif
ferentials between labor grades, although in a few instances the purpose was to
reduce the gap.
Perhaps the best known use of cents-per-hour increases to
maintain relative base rate differentials was that employed in the steel industry
for a number of years.
That method granted uniform general increases to all
workers, but in addition provided increments of varying amounts depending on
job class. The I960 U.S. St eel-Steelworkers agreement, for instance, provided
for a 7 cent-per-hour general increase, plus increments between standard job
class rates that resulted in added increases ranging from 0. 2 up to 6 cents for
the top job class. An additional deferred increase in 1961 of 7 cents per hour,
plus a 0. 1-cent increase in increments between job classes, maintained occupa
tional wage differentials through the term of the agreement.
Effective on the dates specified below Ihe standard hourly wage scale of rates for the re
spective job classes shall be as follows:
____________ Standard hourly wage rates___________
Dec. 1, 1960
Oct. 1, 1961
$ 1 ,9 6 0
2 .0 2 7
2 .0 9 4
2.161
$ 2 ,0 3 0
2 .0 9 9
2 .16 8
2 .2 3 7
$ 2 .1 0 0
2 .1 7 0
2 .2 4 0
2. 310
3 .70 2
3 .7 6 9
3 .8 3 6
3 .90 3
3 .8 2 4
3 .8 9 3
3 .9 6 2
4 .0 3 1
4 .1 0 0
3 .9 2 0
3 .9 9 0
4 .0 6 0
4 .1 3 0
4 .2 0 0
Jan. 4 , 1960
Job class
1i—------------------------------------i
_______________ ___
___
___
In like manner up to:
an
____
________ _______________
____
32...................................................
12
In the current study, variances in the amount of the deferred cents-per-hour
increases were most prevalent in retail trade, but also commonplace in food,
transportation, and transportation equipment.
Reproduced below are examples of variations of cents-per-hour increases:
8 a. m.
This agreement o f June 30, 1962, shall provide the follow ing wage adjustments effective
July 1, 1963:
1.
A ll hourly rates between $2. 35 and $2. 51, inclusive, w ill be increased 8 cents per hour.
2.
A ll hourly rates between $2. 525 and $ 2 . 6 6 , inclusive, w ill be increased 9 cents per hour.
3.
A ll hourly rates between $2. 68 and $2. 84, inclusive, w ill be increased 10 cents per hour.
4.
A ll hourly rates from $ 2 . 8 6 per hour and up w ill be increased 11 cents per hour.
5. A ll weekly salaried rates between $85.80 and $100.40, inclusive, w ill be increased
$3. 60 per week.
6.
A ll weekly salaried rates between $101.20 and $106.40, inclusive, w ill be increased
$3. 20 per week.
7. A ll weekly salaried rates between $107.20 and $113.60, inclusive, w ill be increased
$4 per week.
8.
A ll weekly salaried rates from $114.40 and up w ill be increased $ 4 .40 per week.
(11)
* * *
Effective September 27, 1961, all employees other than skilled trades shall receive an in
crease o f 6 cents per hour, which increase w ill be added to the base hourly rates for each classifi
cation including minimum, intermediary and maximum rates.
Effective September 27,
o f 9 cents per hour. (12)
1961,
all
skilled trades employees
shall receive
an increase
Percentage Wage Increases.
Percentage wage formulas also prevent
narrowing of occupational differentials in the wage structure. Of the 1,210 agree
ments with deferred wage clauses, about 1 in 20 (5. 5 percent) contained pro
visions for percentage increases only (table 2).
Four-fifths of these were in
manufacturing industries, being most prevalent in the glass; electrical machinery,
equipment, and supplies; and transportation equipment industries.
Wage Increases
Effective October 1, 1964, all existing base hourly wage rates shall be increased 3 percent
calculated to the nearest on e-h alf cent. These increases to be reflected in incentive, bonus, and
piecework rates as in the past. (13)
* * *
A ll employees shall, as of October 1, 1964, receive an increase o f 2 V 2 percent per hour
above their respective hourly rates on September 30, 1964, rounded o ff to the nearest cent. A ll
employees shall, as o f October 1, 1965, receive an increase o f 2 !z percent per hour above their
respective hourly rates on September 30, 1965, rounded o ff to the nearest cent. (14)
* * *
13
The company agrees to increase all classified rates now in existence as follows:
(a) A general wage increase o f 2 V 2 percent per hour, 2 cents added to the plus rate,
and the remainder added to the base rate, effective March 21, 1963.
(b) A general wage increase of 2 percent per hour, 2 cents added to the plus rate, and
the remainder added to the base rate, effective March 21, 1964. (15)
With the exception of the electric and gas utility industry, percentage
formulas were infrequently found in agreements in nonmanufacturing.
In this
one industry, slightly fewer than 13,000 workers were scheduled for the deferred
adjustments contained in seven agreements.
3/
The company agrees to further increase by 3 /4 percent rounded to the nearest half cent of
an em ployee's hourly rate or to the nearest 2 0 cents of an em ployee's weekly rate, the then current
base rates of all such employees in the active employ of the company on March 24, 1964, such
further increase to becom e effective as of March 24, 1964.
.
March 24,
but not in
March 23,
. . and to further increase such starting and progression rate schedules, effective
1964, in such amount as shall be agreed upon between the company and the union,
excess of 33/ 4 percent of such individual starting and progression rates in effect on
1964.
In consideration o f the foregoing, it is specifically agreed, except as otherwise herein pro
vided, that the union w ill not present, during the term of this agreement, any demands or requests
for additional wage rate increases, other than individual wage rate increases. (16)
Combination Cents-Per-Hour and Percentage Increase. Approximately
5 percent of the 1,210 deferred wage clauses, covering 835, 000 workers, contained
provisions for cents-per-hour and percentage increases, usually in the form of
a uniform percentage adjustment with a cents-per-hour minimum increase. The
bulk of the workers represented by these agreements were employed in the auto
mobile industry and were covered by annual improvement factor (AIF) provisions
which prescribed a percentage increase and a minimum.
This is a departure
from the form of early AIF plans in the industry. The 1948 GM—UAW contract
provided for a flat annual improvement factor increase of 3 cents per hour, which
was subsequently raised to 4 and then to 5 cents. The 1955 agreement, however,
shifted the increase to a percentage of wages with a minimum cents-per-hour
provision.
This difference in approach had the effect of retaining the relative
positions of job classifications in the rate structure. In addition to the standard
AIF provisions, the 1964 GM~UAW agreement included a flat sum deferred
increase of 2 cents per hour.
Accordingly, effective as o f September 6 , 1965, each employe covered by this agreement
shall receive an annual improvement factor increase of 2 V2 percent of his straight-time hourly wage
rate (exclusive o f cost-of-liv in g allowance and shift premium), or 6 cents per hour, whichever is
the greater in accordance with table I:
Table I
Straight-time hourly
wage rate
Less than $ 2. 6 0 -----------------------------------------------------------------$2. 60—$2. 99 — ........... - ..........— ..............— ........... - ..............
$3.00—$3. 39----------------------------------------------—........................
$3. 40—$3. 79----------------------------- -------- ------------------------------$3. 80—$ 4 .1 9 -------------------------------------------- ----------- - ............$4. 20—$4. 59--------------------------------------------------------------------$4. 60—$ 4 .9 9 --------- -------------------------------------- ----------- ---------$5.00—$5. 39--------- -------- - ----------- --------------------------------------
Annual improvement
factor increase
(cents per hour)
6
7
8
9
10
11
12
13
14
Effective as of September 5, 1966, each employe covered by this agreement shall receive
an annual improvement factor increase o f 2. 8 percent o f his straight-time hourly wage rate (exclusive
of cost-of-liv in g allowance and shift premium), or 7 cents per hour, whichever is the greater, in
accordance with table II:
Table II
Annual improvement
factor increase
(cents per hour)
Straight-time hourly
wage rate
Less than $2. 6 8 -----------------------------------------------------------------------$ 2 .6 8 —$3. 0 3 ................................................ - .........................................
$ 3 .0 4 —$3. 3 9 ------------..................... - ......................... - ..........................
$ 3 .4 0 —$3. 74 — ..................— ....................— ......................... ..........
$ 3 .7 5 —$ 4 .1 0 .............................................. - ................... — .............—
$ 4 .1 1 —$ 4 .4 6 ------------------ -------------------------- - ..................... .............
$ 4 .4 7 —$ 4 .8 2 .........- .................................................... .......... - ...............
$ 4 .8 3 —$ 5 .1 7 .......................................................................... - ...............
$ 5 .18 —$5. 5 3 ...................... - ............. - ..................... — ................... —
7
8
9
10
11
12
13
14
15
In addition, effective September 5, 1966, each employe covered by this agreement shall
receive a wage increase o f 2 cents per hour. This 2 cents per hour shall be added to the "wage
rates" or "base rate" whichever is applicable, after such "wage rates" or "base rate" have been
adjusted to include the September 5, 1966, annual improvement factor increase.
The improvement factor increases in base rates and the 2 cents per hour increase shall be
added to the wage rates (minimum, intermediary, and maximum) for each daywork classification.
The amount o f the improvement factor increase shown in the tables for the "straight-time
hourly wage rate" o f an incentive job classification and the 2 cents per hour increase shall
be added to the base rate o f that job classification except as the parties to this agreement may
provide otherwise in writing. (1)
Other methods of combining percentage and flat-sum increments were often quite
similar, for example:
Effective January 4, 1965, the company agrees to a general wage increase of 2*/2 percent
with a minimum o f 5 cents per hour to be added to all rates. Such general wage increase shall
be made effective January 4, 1965, for all employees covered by the terms of this agreement. (17)
5}e
5}c
sje
The increases provided for herein include those made effective through April 2, 1962, and
this wage agreement replaces and supersedes the wage agreement between the company and the union
dated the 22d day of October 1960.
General increases— (a) Effective as of the dates indicated below the company w ill grant,
in the manner provided herein, general wage and salary increases as follows:
(1)
For those units which elected the 3 percent increase effective April 2, 1962:
Date
Sept. 23, 1963------------------------------Apr. 5, 1965 ---------------------------------
Increase
3.1 percent, but
2 .5 percent, but
not less than 5 cents per hour.
not less than 5 cents per hour.
(2) For those units which elected the 4 percent increase effective Apr. 2, 1962, and not
later than Nov. 15, 1963, does not choose an 8th paid holiday:
Date
Sept. 23, 1963------------------------------Apr. 5, 1965 ---------------------------------
Increase
2 .5 percent, but
2. 5 percent, but
not less than 5 cents per hour.
not less than 5 cents per hour.3
(3) For those units which elected the 4 percent increase effective Apr. 2, 1962, and not
later than Nov. 15, 1963, does choose an 8th paid holiday:
Date
Sept. 23, 1963Apr. 5, 1965 -
Increase
2. 5 percent, but not less than 5 cents per hour
and decreased by 0. 4 percent.
2 .5 percent, but not less than 5 cents per hour.
(18)
15
It should be noted, however, that not all clauses with both provisions
applied cents-per-hour and percentage factors at the same time.
Some pro
vided deferred flat increases at one wage installment and percent adjustments at
another.
The following are examples:
Subsequent General Increases. The basic hourly wage rate o f each employe in the bar
gaining unit on July 1, 1963, and July 6, 1964, shall be increased as follows:
______________ Factory labor grade_______________
1963
_______ Technical and office labor grade_________
1963
1964
1 thru 7 -------- $0. 06 Increase equal to 2 V4 per8 thru 1 2 -----.0 7 cent o f the maximum rate
13 thru 16---.08 of labor grade excluding
from the computation the
55 c e n t s additional rate
which is paid to certain
employes at missile a n d
test bases.
1964
1 thru 6 ------- $0 .06 Increase equal to 2 V 2 per7 and 8 ------. 07 cent of the maximum rate
9 thru 14-----.08 o f labor grade excluding
from the computation the
55 c e n t s additional rate
which is paid to certain
employes at missile a n d
test bases.
(19)
* * *
The following general increase w ill be applied as o f May 25, 1963, to all covered em
ployees' rates and rate ranges: For labor grades 13 and above, 8 cents per hour; for labor grades
8—12, 7 cents per hour; for labor grades 2—7, 6 cents per hour.
^n addition to foregoing, all employees w ill, effective D ecem ber 28, 1963, be increased
another 2 h percent computed on the maximum of the rate range; this amount to be applied to both
the minimums and maximums o f the rate ranges. (20)
Conditional Wage Increases
Automatic adjustment of wages corresponding with possible changes in
such external factors as prevailing wages in the industry or area, current
statutory minimum wages, or product prices were prescribed by 45 agreements.
In some cases, the conditional clause stood alone, while in others it was in con
junction with one or more regularly scheduled wage adjustments.
Conditional Increases Only. Most of the exclusively conditional clauses
were in the apparel industry, where 169, 000 employees were represented by
agreements in which the most common arrangement provided a "floor" for
wages 15 percent above the statutory minimum.
Increase o f Legal Minimums
In the event that Federal legislation shall be enacted which shall raise minimum wages
under the law, and if the minimum wage for any craft stated in this agreement shall be less than
15 percent greater than such statutory minimum wage, then such minimum wage stated herein for
such craft shall be increased to a sum equal to the new statutory minimum wage plus 15 percent. (21)
Provisions of other agreements in the industry designated minimum wages to
remain a fixed cents per hour higher than the legal minimum.
When the present hourly minimum wages under law are increased pursuant to Federal or
State legislation heretofore or hereafter enacted, then the minimum wage scales set forth in this
agreement which are then less than 20 cents per hour more than such new legal minimum rate shall
be increased by an amount sufficient to make such minimum wage scales 20 cents per hour more
than such new legal minimum rate. (22)
16
Others stipulated that the minimum scale would increase by the same
amount as the legal minimum.
When the present hourly minimum wages under law are increased pursuant to Federal or
State legislation heretofore or hereafter enacted, then it is agreed that the lowest hourly rate under
the minimum wage scales hereinabove provided shall be increased by a like amount per hour, and
the hourly rates under all other minimum wage scales hereinabove provided shall be increased by
a like amount per hour so as to maintain the present differentials between the various minimum
wage scales above provided. (23)
Industry wage comparability was the concern of several plans in meat
packing. Each required that wages be automatically adjusted to meet any change
in rates initiated by major companies in the industry:
It is further agreed that if during the term o f this agreement a wage increase or decrease
is given to the production workers of the Big Four Packing Companies, namely Swift S C o . , Armour
and C o . , Cudahy and C o . , Wilson & C o . , that then and in that event, the employers under this
agreement shall immediately put into effect a similar wage increase or decrease in a like amount
to the same retroactive date for all employees who are covered by this agreement. (24)
To insure that wages keep pace with those paid by other companies in
the area, two agreements called for regular reviews of rates. One plan desig
nated the employer to survey rates paid by leading firms in the community
every 6 months and, if necessary, adjust wages:
Wage Survey. The employer agrees to pay wages that match the wages paid by leading
companies in the community for similar types o f work. The employer w ill make surveys to deter
mine these wages.
The surveys w ill be made in this way:
(a)
T o compare similar types o f work the employees shall be considered in nine groups:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Stationary engineers
Firemen
Mechanics
Production men
Plant guards
Production women
Straight-time, nonsupervisory male employees
Straight-time, nonsupervisory fem ale employees
Locom otive crew
(b) The employer w ill determine community rates for these groups each 6 months. It w ill
do this by surveying the rates paid at places where work is comparable to work at the employer's
plants. The employer and Ihe union w ill agree and write into the negotiation minutes the
companies in the community which w ill be surveyed.
These shall be the only companies
surveyed during the agreement year. Only base rates w ill be used in these surveys.
(c)
The employer w ill figure the average rate paid each group in its plants.
(d)
The average rates paid to each group in each company surveyed w ill be figured.
(e ) For each o f the nine groups, the average rate paid by the employer w ill be compared
with the average o f the five highest rates paid by the employers surveyed.
(f) The employer w ill give the union the survey results.
adjust wages after conference with the union.
If necessary, the employer w ill
(g) The union may name three representatives to sit with the employer's representatives
in working up the survey figures. They shall take no record o f figures; the survey information
is confidential. (25)
17
The other required the employer to adjust annually any existing wage
inequities as revealed by the area wage survey of the U.S. Department of Labor's
Bureau of Labor Statistics.
It shall be the policy of the employer to establish and maintain wage levels equal to those
o f other comparable concerns in the area for comparable work. A comparison of first class rates,
of jobs com m on to the Beverly Factory and other comparable concerns, shall be used as a basis to
determine wage levels. It is recognized that the job evaluation of the Beverly Factory is to be
used in the determination o f any job or classification rate.
In case any dispute arises as to wages being paid in the area, or as to what constitutes
comparable concerns, the matter shall be reviewed with the Federal Mediation and Conciliation
Service. A ll adjustments made as the result of wage rate reviews shall take effect at a date agreed
upon by the parties.
The employer intends to review the classification
An employee shall be classified according to the work he
revised downward so long as a man retains his ability to
Classification shall be subject to the dispute and grievance
o f employees at least every 6 months.
is doing and no classification shall be
do the work for which he is classified.
procedure.
The following method shall be used to adjust wage levels at the Beverly Factory.
1. An annual review shall be made when the final report o f the Bureau of Labor Statistics
entitled "Occupational Wage Survey, Boston, Massachusetts," is published each year for the
Boston area. These figures are those accumulated for the year ending October 1st o f the pre
vious year.
2. An arithmetic average of the wages shown as the average wage for each o f the below
listed job categories for the "manufacturing only" com plex o f the survey shall be compared with
an arithmetic average of the corresponding first class rate being paid for each such job at the
Beverly Factory.
The 12 bench mark jobs to be compared are as follows:
Job
Number
2
16
17
19
20
23
24
26
30
34
36
44
United Shoe
Machinery Corp.
Bureau of
Labor Statistics
Boston Area
Description
Description
Janitor
Truck driver (outside)
Trans, (power truck)
Carpenter
Painter (maintenance)
Electrician
Millwright
Plumber and steamfitter
Oiler (maintenance)
Tinsmith (construction)
Machine tool maintenance man
T ool and die maker
Janitors, porters, cleaners (men)
Truckdrivers (all size trucks)
Truckers, power (other than
forklift)
Carpenters, maintenance
Painters, maintenance
Electricians, maintenance
Millwrights
Pipefitters, maintenance
Oilers
Sheet-metal workers, maintenance
Machinists, maintenance
Tool and die makers
The difference in these two averages, computed as a percentage, shall be the
the first part of the method of correcting whatever inequity may exist.
The second part o f the
correction shall be a percentage factor which shall be one-half of the rate of change in the Bureau
o f Labor Statistics figures for the Boston area for the same jobs as computed from the previous year's
average, o f these same jobs. In addition to these two corrections, 1 percent shall be added. The
sum of these 3 percentages, rounded out to the nearest one-tenth of 1 percent, shall then be applied
to all base rates at Beverly Factory. In no event shall a total of the three steps outlined above
result in a negative correction o f Beverly Factory base rates such that the average of the 12 bench
mark jobs as defined above be lower than that same average of the 12 bench mark jobs from the
final report o f the Bureau o f Labor Statistics "Occupational Wage Survey, Boston, Massachusetts,"
o f the previous October. (26)
18
Conditional and Deferred Increases. Wage adjustments based on possible
changes in legal minimums, as well as scheduled wage increments, were incor
porated in several agreements in the apparel industry.
In transportation and the food industry, several agreements linked regu
lar deferred increases with conditional adjustments based on industry settlements.
For example:
Effective for the 5-contract years April 15, 1962, to April 8 , 1967 inclusive:
On the follow ing dates all above hourly wage rates shall be increased the identical number
o f cents per hour as follows:
Through
From
Apr.
Apr.
Apr.
Apr.
Apr.
15,
14,
12,
11,
10,
Apr.
Apr.
Apr.
Apr.
Apr.
1962
1963
1964
1965
1966
Cents per hour
0 .0 7
.0 7
. 06 plus as provided below
. 06 plus as provided below
. 06 plus as provided below
13, 1963
11, 1964
10, 1965
9, 1966
8 , 1967
Should any settlement reached by the parties to the Central States Area Agreements nego
tiations in 1964, 1965, or 1966, result in an increase in wage rates for the employees of employer
members o f the Central States Area employer associations engaged in the performance of the same
or similar type of work as that performed by the membership of Local 340, the identical amount
o f cents per hour in uniform increases as negotiated w ill be added to the hourly rate of the job
classifications covered by this agreement for the same three consecutive corresponding contract
years, thereby becom ing due and payable as the total wage rates applicable under this agreement
from April 12, 1964, to April 9, 1967. However, at no time within the designated periods shall
the road formula rates under this agreement be higher than the mileage rates established by such
Central States Area Agreements. (27)
A manufacturer of milk products provided that wage rates in local union
areas be annually adjusted to conform with the company's basic wage pattern as
negotiated.
Basic wage pattern and general increases
Bracket
Present
base rate
1 ----------------- --------------
$ 2 .2 2
2 ----------------------------—
2 .1 2
3.............. .......................
4----------------- ---------- —
2 - A - l ---------------------2 - A - 2 ...........................
2.03
1.94
2. 15
2.05
Jan. 1
1959
$0 . 1 0
. 10
. 10
.09
. 11
. 11
Jan. 1,
1960
$0. 09
.09
.09
.09
. 11
. 11
Jan. 1,
1961
$0.09
.09
.08
.08
.08
.08
Base rate
after general
increases
$2.50
2.40
2 .30
2 .2 0
2.45
2 .35
Wage rates in any loca l union area w ill be adjusted annually to equal the basic wage pattern.
The differential between the loca l rate and the basic wage pattern w ill be equalized over the period
o f the agreement.
Those areas com ing under this area agreement at a later date w ill make the
annual adjustment in accordance with the number o f years remaining under the agreement.
A ll employees w ill receive the negotiated basic wage pattern regardless of their rate; how
ever, employees whose rate is above the negotiated wage pattern shall not receive the negotiated
make-up differential until such time as their rate falls below the rate for their classification. (28)
19
Other agreements incorporated conditional and scheduled wage adjust
ments in a variety of ways. One, for example, authorized automatic additional
hourly rate increases in the event that neither party exercised its right to rene
gotiate wages:
Wage Increases
Effective May 1, 1963, each em ployee in the bargaining unit, including apprentices, shall
receive a wage increase o f 5 cents per hour, and the minimum wage rates shall be increased
accordingly.
Effective May 1, 1964, each em ployee in the bargaining unit, including apprentices, shall
receive a wage increase of 5 cents per hour, and the minimum wage rates shall be increased
accordingly.
In the event neither party to the agreement exercises its right to negotiate concerning hourly
wages as of May 1, 1965, die following wage increases shall automatically becom e effective:
Effective May 1, 1965— 5 cents per hour.
Effective May 1, 1966— 5 cents per hour.
(29)
Another agreement addressed itself to the relationship between wages
and market prices of metals: 15
Wage Grade— General Table
_______________ Hourly rate
Wage grade
1...................
2..................
3............. —
4-------------5--------------6 ..................
7................ 8 ---------------
9--------------10........... —
11------------12------------13-------------
14— ..........
This
to movements
agreements in
o f agreements
Dec. 11, 1960
Jan. 1, 1962
Jan. 1, 1963
$2. 10
2 . 16
2 . 22
2.29
2.35
2.41
2.47
2.54
2.60
$2. 16
2 . 22
2.28
2.35
2.41
2.47
2.53
2.60
$2.22
2.28
2.34
2.41
2.47
2.53
2.59
2.6 6
2.66
2.72
2.78
2. 85
2.91
2.97
2.72
2.78
2.84
2.91
2.97
3.02
2. 72
2.79
2.85
2.91
2 .6 6
Jan. 1, 1964
$2.27
2.33
2.39
2.46
2.52
2.58
2.64
2.71
2.77
2.83
2.89
2.96
3.02
3.07
Jan. 1, 1965
$2.32
2.38
2.44
2.51
2.57
2.63
2.69
2.76
2.82
2.88
2.94
3.01
3.07
3.12
was the only agreement included in the current study o f major contracts which tied wage adjustments
in the price o f the com m odity produced. At one tim e, sliding scales were incorporated in union
iron and steel and in the mining o f coal and other minerals and metals. A 1951 survey o f the BLS file
indicated only 11 contracts in effect which contained sliding scales, 7 in nonferxous metal mining.
20
Escalator Clause
In addition to the above scheduled wage increases, the follow ing additional ’’ metal price
wage escalation schedule" of wage increases w ill be effective under the following conditions:
1. The monthly average com bined price of lead and zinc means the monthly average
market price for com mon lead, delivered at New York City, plus the monthly average price
for prime western zinc f. o .b . East St. Louis, as quoted by the Engineering and Mining Journal.
2. If at any time during the 5-year period set forth in the escalation schedule, the
monthly average com bined price of lead and zinc equals or exceeds the price set forth in the
schedule for each o f 2 consecutive calendar months, the specified wage increase as set forth
in the schedule w ill becom e effective as of the first payroll week beginning in the first month
follow ing such 2-month period and continuing in effect for not less than 9 payroll weeks.
3. Such wage increase made effective under the terms o f the escalator schedule w ill con
tinue in effect only until such time as the monthly average com bined price o f lead and zinc
does not equal the price specified in the schedule for each o f 2 consecutive calendar months.
4. The cents per hour increases set forth in the yearly columns o f the schedule are not
cumulative and only one figure in a column is applicable at any time.
Metal Price Wage Escalator Schedule
Across-the-board wage increase— cents per hour
Monthly average
com bined price
lead and zinc
28.000
28.500
29.000
29.500
30.000
30.500
31.000
31.500
32.000
32.500
33.000
33.500
34.000
Jan. 1, 1961
to
D ec. 31, 1961
Jan. 1, 1962
to
D ec. 31, 1962
Jan. 1, 1963
to
Dec. 31, 1963
Jan. 1, 1965
Jan. 1, 1964
to
to
D ec. 31, 1964 D ec. 31, 1965
3
3
3
3
7
3
7
7
7
12
7
12
12
12
12
(30)
This arrangement may also be considered as a form of wage escalation.
It is included in this section because it does not conform to the typical pattern
of escalator clauses.
Diversions From Deferred Wage Increases 16
Collective bargaining agreements occasionally provide for the possible
diversion of some or all of the deferred wage increase to cover the cost of
fringe benefits or other costs. Of the 1,210 contracts with deferred wage pro
visions, 26 specifically provided for diversions, and inmost cases (23) allocated
funds or provided an option for such to sustain the costs of fringe benefits.
16
Excludes agreements which diverted portions or all of initial wage increases but kept deferred raises intact.
21
Agreements
Food and kindred products-------------------------------------------------------Printing, publishing, and allied products-----------------------------------Machinery, except electrical--------------------------------------------------Transportation equipment---------------------------------------------------------Instruments and related products-----------------------------------------------Construction----------------------------------------------------------------------------
1
5
3
7
1
9
Workers (in thousands)
2. 1
12. 1
4.6
57.0
1.6
21.2
As a rule, the agreements permitted the union to elect what portion, if
any, was to be allocated from the general wage increase.
Effective upon the anniversary date of this contract, that is September 27, 1962, the Guild
shall have the option to divert all or any part of the increase in minimum salaries that is necessary
to establish an insured health and welfare plan. (31)
* * *
Of the increase effective June 7, 1963, the parties agree that there is an option on the
part of the union to divert all or part of this increase into a joint pension trust fund. The union
will notify the association not later than December 1, 1962, of their decision in this matter.
In the event the union elects to divert all or part of the June 7, 1963, wage increase into
a joint pension trust plan, it shall notify the association of such election and the parties shall
promptly meet to negotiate a pension plan and shall promptly establish a trust fund into which the
employers shall pay their contributions. (32)
* * *
The union shall have the option of using all or any part of the increase scheduled for
June 1, and/or December 1, of each year for improvement of or payment of costs of any fringe
benefits provided under this agreement; provided that the union gives the employer written notice of
its election to do so by registered letter sent to the offices of Master Builders Association at least
30 days before the effective date of the scheduled increase, specifying in said notice the amount
of the increase to be applied for this purpose and the fringe benefit for which the money is to
be used. (33)
❖ * *
The union reserves the right to change the allocation of the increases provided for herein,
upon reasonable notice, provided that the total amount of wages and fringes for any period shall
not be increased. (34)
Less frequently, the agreement specified the amount to be diverted for
a particular fringe benefit.
Effective as of October 1, 1962, each employee shall receive a wage increase of 5 cents
per hour or 2 V2 percent of his basic hourly rate, whichever is greater. Effective as of October 1, 1963,
each employee shall receive a wage increase of 5 cents per hour or 2V2 percent of his basic hourly
rate, whichever is greater.
Notwithstanding the above, if the GHI premium in the year previous to October 1, 1962,
is increased by an amount equal to more than 1 cent per hour per employee in the bargaining unit
the general increase of October 1, 1962, will be reduced by 1 cent; if the GHI premium in the
year previous to October 1, 1963, is increased by an amount equal to more than 1 cent per hour
per employee in the bargaining unit the general increase on October 1, 1963, will be reduced
by 1 cent. (35)
22
The remaining agreements provided that, with mutual consent, funds
would be alloted for individual rate adjustments, including a widening of labor
grade differentials.
Wages
Effective 12:01 a. m. , December 1, 1961, all hourly base rates of jobs in the bargaining
unit will be increased 6 cents an hour.
This agreement provides for deferred adjustments of
2 V 2 percent to be effective December 1, 1962, and December 1, 1963. One-quarter of 1 percent
of -the December 1, 1962 adjustment may be applied by mutual agreement of the parties to individual
job adjustments based on the job evaluation program now being conducted. (36)
* * *
Alternate Application of General Wage Increases
The parties may by mutual agreement set aside a portion of either or both of the general
wage increases to increase the increments between the rate ranges for the several labor grades for
incentive and nonincentive employees, provided, however, that the general increases shall be put
into^effect in the amounts and at the times stated unless prior to the date such general wage increase
is to become effective the parties have signed a written agreement, specifying in full detail ( 1) the
portion of such general wage increase which shall be effective as a general wage increase,
(2) the portion thereof which shall be used to adjust the increments, and (3) the amount by which
each increment shall be increased. (37)
23
Table 2.
Formula for Deferred Wage Increases in Major Collective Bargaining Agreements
by Industry, *1963
(Workers in thousands)
Cents -per-hour adjustment
Industry
Number with
provisions
Application
uniform 1
Application
not uniform 2
13
4
Percentage adjustment
Percentage
only
Agree Work Agree Work Agree Work Agree Work
ers ments
ers ments
ers
ers ments
ments
All industries------------- ----------Manufacturing
Ordnance and accessories--------------Food and kindred products
Tobacco manufactures--------------------Textile mill products
Apparel and other
finished products.
Lumber and wood products,
except furniture---- -------- --------------Furniture and fixturesPaper and allied products--------------Printing, publishing, and
allied industries----------------- ----------Chemicals and allied
products
Petroleum refining and
related industries
Rubber and miscellaneous
plastics products---- ---------------- -----Leather and leather
products------------— —----------------- -—
Stone, clay, and glass
products------------ ------------- r-------------Primary metal industries
Fabricated metal products
Machinery, except
electric al-------- ------- — -------------------Electrical machinery,
equipment, and supplies--------------Transportation equipment
Instruments and related products . .
Miscellaneous manufacturing
industries
Nonmanufacturing
Mining, crude petroleum, arid
natural gas production-----------------Transportation4------------------------------Communic ations----------. . . — ------------Utilities: Electric and gas------------Wholesale trade
Retail trade
Hotels and restaurants
Services
Construction.
Miscellaneous non
manufacturing industries__ __ ____
1,210 5,146.9
653 2,723.6
Percentage with
cents-per-hour
minimum or
combination
Agree
ments
Work
ers
764 2,633.0 278
1,223.0
66
237.8
66
835.4
Other 3
Agree Work
ers
ments
36
217.8
360
843.4
142
641.7
53
196.0
63
824.8
35
216.8
.
4
3
.
8 .7
18.9
168.7
14
102
2
11
70. 5
323. 0
4. 1
37.6
5
65
4
22.6
162.7
13.0
4
31
2
-
15.8
148.3
4. 1
-
1
2
4
3 .0
3 .3
5.7
4
-
29. 1
-
43
244. 5
12
34. 1
9
41.7
-
-
-
-
22
6
11
20
9 .6
20. 2
54.4
4
8
9
6 .8
15. 5
14.8
2
3
6
2 .8
4 .7
32.7
4
5 .6
1
1 .4
-
33
69. 1
17
35. 1
15
28.9
-
-
1
5. 2
-
-
-
30
56.3
23
4 2 .2
3
4 .8
3
5 .8
1
3. 5
-
1
1.0
1
1.0
-
-
-
-
-
-
-
-
13
64. 1
10
3 5 .9
1
23.0
1
1.2
1
4 .0
-
-
13
60.0
10
53.7
1
1.2
1
1. 1
1
4. 0
-
-
24
28
31
100. 0
50.6
57.4
13
17
15
3 2 .4
31 .5
3 0 .0
1
10
8
8 .0
17.9
12. 5
10
1
1
59.3
1.3
1.3
6
12.7
1
1 .0
72
211.4
49
85.2
8
16.4
2
5 .9
10
100. 5
3
3. 5
89 .0
514. 0
1.6
2
-
16.0
-
72
104
18
313. 1
926.6
39.3
5
11.6
557 2.423.3
39
48
7
80. 5
127.6
10.0
4
15
18
4
98.0
162.8
17. 1
6
11
6
10.3
1
1.3
-
404 1.788.6
136
581.4
13
2
26
8
13
2 .5
169. 0
39.8
4 1 .9
11
95
10
27
14
104
32
50
213
200.6
640. 7
56.3
69.0
26.9
279. 5
142. 5
151. 1
855. 5
9
66
1
7
11
61
18
31
199
198. 1
455. 1
14.7
14.4
21 .4
141.6
52.9
109.3
779.8
42
12
16
14
1
1. 5
1
1. 5
“
3
5. 5
134.9
73. 5
38.7
75.7
~
2 9.8
62.3
10.6
-
10
27
1
-
-
-
-
4 1 .8
3
10. 6
1
1.0
2
7
2
2
_
10.8
12.7
.
16.2
2. 1
.
1
1
1
.
5 .8
1.8
3 .0
.
1
1.0
_
_
-
-
-
-
“
-
1 All workers covered by provision receive identical deferred wage increases.
2 Cents-per-hour increase varies according to labor grade, job classification, or other consideration.
3 Includes 28 agreements, covering 194,000 workers, which provided automatic conditional increases only.
In most
cases, this meant an adjustment of wages to meet increases in legal minimum wages or to maintain industry or area wage
comparability.
8 agreements made no reference to formula.
4 Excludes railroad and airline industries.
NOTE:
Because of rounding, the stun of individual items may not equal totals.
Chapter III. Escalator Clauses
An escalator clause has as its general objective the maintenance of the
purchasing power of money wages during the term of the agreement.
This is
accomplished by having wage rates automatically increased or decreased periodi
cally in proportion to changes in the cost of living, as measured by an appropriate
index. The objective is usually implicit, although some contract clauses contain
a direct reference, as in this following excerpt:
It is recognized that it is desirable and sound to protect the buying power of an hour of work
against changes in consumer prices and that die best way to accomplish this objective is to provide
a cost-of-living adjustment, based on the fluctuations o f consumer prices as measured by the Bureau
of Labor Statistics Price Index.
(38)
The operation of escalator clauses.depends on various elements, the most
important of which are: The index selected as the barometer of the cost of
living;17 the frequency or timing of the index review; and the formula, that is,
the ratio of wage adjustment to index movement.
Election of the Price Index
Except in one instance where the index was not identified, all agreements
with escalation specified one of the consumer price indexes of the Bureau of Labor
Statistics. Of the 300 agreements with escalation, 264 designated the BLS Con
sumer Price Index, U. S. city average (all items), and 35, primarily in retail
trade and local transportation, indicated one of the separate indexes compiled by
the Bureau for certain large cities. 18
Number with escalation---------------------------U. S. city average-----------------------------------Particular city specified--------------------------Index not iden tified---------------------------------
Agreements
Workers
( in thousands)
300
264
35
1
1,757.9
1,643.7
110.5
3.7
The index series stipulated in escalator clauses dates back to 1913 and
is a statistical measure of the changes in prices of goods and services brought
by urban wage earners and clerical workers. 19 It was known as MThe C ost-ofLiving Index" until 1945, when the name was changed to the Consumer Price
Index (CPI).
Currently the official identification of the index most commonly
used in wage escalation is Consumer Price Index— U. S. City Average for Urban
Wage Earners and Clerical Workers (Including Single Workers), All Items,
1957-59=100.
17 Included in the process of selecting an index is the determination of the base point, that is, the base from
which measurements begin. In many cases, the index for the month in which the agreement becomes effective is
chosen; in others, different index levels are selected. In agreements continuing escalation from previous contracts,
the base point may remain unchanged.
18 The nationwide index and those for the 5 largest metropolitan areas are provided monthly; indexes for 18 other
metropolitan areas are issued quarterly.
*9 The Consumer Price Index applied only to wage earner and clerical worker families of two persons or more
until the January 1964 index, when the coverage was extended to single workers living alone. For details of the
revised CPI, see ’’New Features o f the Revised CPI” Monthly Labor Review, April 1964, pp. 385—390; the "Statistical
Structure of the Revised CPI" Monthly Labor Review, August 1964, pp. 916—924; and the Consumer Price Index
(Revised January 1964), A Short Description (September 1964).
24
25
Base Period
In addition to identifying the price index to be followed, escalator clauses
must specify the base period upon which the index is calculated, if a scale of
absolute levels of the index and the corresponding addition to wages is to be used.
This is important because, while 1957—59 is the current base reference period
of the CPI, index numbers with 1947-^49 ■100 are also published. Illustrative of the
language found in clauses indicating the index and base period are the following:
The amount of the cost-of-living allowance shall be determined and redetermined as provided
below on the basis of the Consumer Price Index for Urban Wage Earners and Clerical Workers
(Including Single Workers) published by the Bureau of Labor Statistics, U.S. Department of Labor
(1957—59=100) and referred to herein as the index.
(39)
* * *
During the term of this agreement automatic wage adjustments shall be made both upward
and downward based upon changes in the Consumer Price Index—United States, All Items and Major
Group Figures of the U.S. Bureau of Labor Statistics, New Series for Families, as revised January
1964, on the basis of 1957—59 equaling 100 (herein called the "price index").
(40)
* * *
The amount of the cost-of-living allowance shall be determined and redetermined in ac
cordance with changes in the official Chicago Consumer Price Index, published by the Bureau of
Labor Statistics, U.S. Department of Labor (1957-59=100) and referred to herein as the index.
(41)
Availability and Revision of the Index
Included in most escalator clauses are provisions dealing with the availa
bility of the index. Generally they provide that if the index for some reason is
not available at the beginning of a pay period, adjustments, if necessary, will
be made at the first pay period following receipt of the index.
In the event the appropriate BLS Consumer Price Index is not published on or before the
beginning of the effective payroll period, any adjustment required will be made effective at the
beginning of the first payroll period after publication of the BLS Consumer Price Index. (19)
In addition to dealing with availability of the index, escalator clauses often specify
that revisions in published index figures will not necessitate adjustment in allow
ances.
For example;
No adjustments, retroactive or otherwise, shall be made due to any revision which may later
be made in the published figures for the BLS Consumer Price Index for any base month. (1)
Contracts frequently provide for the possibility of revision in the struc
ture of the CPI. Since the inception of the index, there have been three major
as well as several partial revisions. The latest of these revisions was effective
with publication of data for January 1964.
The following clauses are examples
of the arrangements provided for in case of revision in the index:
26
If the BLS index in its present form and calculated on the same basis shall be revised
therefrom or discontinued, the parties shall attempt to determine an appropriate index figure by
agreement or if agreement is not reached, the parties shall request the Bureau of Labor Statistics to
make available a BLS index in its present form for the appropriate date or dates, and calculated on
the same basis.
(42)
* * *
The parties to this agreement agree that the continuance of the cost-of-living allowance is
dependent upon the availability of the monthly BLS Consumer Price Index in its present form and
calculated on the same basis as the index for July 1964, unless otherwise agreed upon by the parties.
If the Bureau of Labor Statistics changes the form or the basis Of calculating the BLS Consumer Price
Index, the parties agree to request the Bureau to make available, for the life of this agreement,
a monthly Consumer Price Index in its present form and calculated on the same basis as the index
for July 1964. 20 (1)
s{e
sjc
sjc
In the event the index shall be revised or discontinued and in the event the Bureau of Labor
Statistics, U. S. Department of Labor, does not issue information which would enable the company
and the union to know what the index would have been had it not been revised or discontinued, then
the company and the union will meet, negotiate, and agree upon an appropriate substitute for
the index.
(43)
Frequency of Index Review
The frequency with which wages are adjusted to compensate for changes
in the cost of living is a crucial aspect of the operation of an escalator clause.
In a period of rising prices, the more frequent the review, the more effectively
the escalator clause acts to maintain purchasing power. If prices were to decline,
however, frequent reviews would not be attractive to the workers involved. The
nature of the industry, pricing policies, and numerous other factors all have an
influence on the decision of the parties with regard to frequency of review. In
general, however, the effects of momentary aberrations and seasonal fluctuations
in the prices of food products, e tc ., are minimized when quarterly, semiannual,
or annual reviews are used rather than more frequent examinations.
Of the 300 agreements with provisions
one-half (166) designated index reviews every
remaining agreements, 64 provided for annual
reviews.
Of the 21 with other time cycles,
for wage escalation, more than
3 months (table 3).
Among the
reviews and 49 for semiannual
2 called for monthly reviews.
Quarterly.
The transportation equipment industry, largely automobile
manufacturing, accounted for nearly two-fifths of the agreements with quarterly
reviews and about two-thirds of the worker coverage.
This arrangement also
appeared in other industries in which the UAW holds bargaining rights, notably
machinery, except electrical, and ordnance; in these industries, contracts nego
tiated by the International Association of Machinists and the International Union
of Electrical Workers (IUE) also provided for quarterly review.
The payroll period in which an adjustment, if called for, is to be effec
tive and the month of the index on which the adjustment is based are ordinarily
specified in escalator clauses.
An adjustment scheduled for the first full pay
period in December, for example, would normally be based upon the index for
the previous October published the last of November, since the index for any
particular month is always published in the latter part of the following month.
It should be noted, however, that the index does not relate specifically to the
15th or any other particular day in the month.
It should be noted, however, that for technical reasons the Bureau cannot compute an index in the form
used prior to a major revision.
27
In quarterly review clauses, the index and adjustment dates were usually
set forth in this way:
The cost-of-living allowance will be determined in accordance with changes in the
official Consumer Price Index for Urban Wage Earners and Clerical Workers (Including Single Workers),
published by the Bureau of Labor Statistics, U. S. Department of Labor (1957—59=100), and hereinafter
referred to as the BLS Consumer Price Index.
Effective with the pay period beginning December 7, 1964, and thereafter during the
period of this agreement, adjustments in the cost-of-living allowance shall be made quarterly at the
following times:
Effective date
of adjustment
Based upon
First pay period beginning on or after:
December 1, 1964, and at quarterly
intervals thereafter to June 1, 1967.
BLS Consumer Price Index as of: Octo
ber 1964, and at quarterly intervals
thereafter to April 1967.
5}e
5jc
to
5jc
During the life of this agreement, adjustments in the cost-of-living allowance shall be made
quarter-annually on the basis of changes in the index as follows:
Effective date of adjustment—
first pay period beginning
on or after: 1964
December 1, 1964March 1, 1965----June 1, 1965--------September 1, 1965
December 1, 1965-
Based upon
index as of:
October
January
April
July
October
15,
15,
15,
15,
15,
1964
1965
1965
1965
1965
(44)
5JC
Time of adjustment: adjustments shall be made the first Saturday following June 1, Septem
ber 1, December 1, and March 1, during the existence of this agreement, based respectively, on the
index issued as of the preceding April, July, October, and January, which denotes the BLS figure for
the preceding months. Any adjustment required shall be effective the start of the payroll period next
following the date of adjustment and shall continue for the ensuing 3-month period.
(45)
Semiannual. Among contracts requiring semiannual review, better than
2 out of 5, covering approximately half the workers under such provisions, were
in the meatpacking industry.
Typical of agreements in this industry is the
following exc e rpt:
Cost-of-living allowance:
(1) Effective with the first pay period beginning after January f, 1965, and thereafter
during the period of this agreement a cost-of-living adjustment, if applicable, shall be made semi
annually with the first pay period beginning on or after January 1 and July 1.
(2) Such adjustment shall be based on changes, if any, in the U. S. Cost-of-Living Index
(1957—59 base=100) 1964 Revision, published by the U. S. Department of Labor, Bureau of Labor
Statistics known as the Consumer Price Index for Urban Wage Earners and Clerical Workers—
Including Single Workers (hereinafter referred to as the index), as of the prior November 15 and
May 15, respectively.
(3) Each such adjustment will be effective for a 6 -month period, provided that if there is
no change in the index requiring an adjustment to a different amount, the amount of the adjustment,
if any, will be continued in effect for an additional 6-month period.
(46)
28
Somewhat different phraseology was used in agreements in the retail
trade industry which also frequently stipulated semiannual adjustments:
Beginning January 1, 1961, and on each January 1 and July 1 thereafter for the duration of
this agreement, the straight-time hourly rate of pay for all employees . . . in effect on these dates
shall be adjusted for changes in the cost of living, based on changes in the BLS Consumer Price
Index for Los Angeles, All Items, available on such dates, as compared with such index for Novem
ber 1958 (126.5). (47)
Annual. Annual escalation clauses were more prevalent in nonmanufac
turing agreements appearing largely in transportation21 and retail trade. Among
manufacturing industries, only transportation equipment with four agreements
representing a total of 48, 200 workers was of significance.
Changes in any adjustment shall be made, if appropriate, only cormnencing with the first
pay period beginning on or after each September 1, beginning September ®L, 1964, and shall be
based on the first published BLS Consumer Price Index (1957—59=100) as of the prior July 15. The
amount of the change in the cost-of-living adjustment shall be the difference between the amount pro
vided in the table and pay cost-of-living adjustment already in effect pursuant to this provision. (48)
# * ❖
Cost-of-living (clerks). Effective July 1, 1961, and each July 1 thereafter, to and including
July 1, 1965, the straight-time hourly rates for clerks covered by this agreement in effect on those
dates shall be adjusted for changes in the cost of living based on changes in the Bureau of Labor
Statistics Consumer Price Index, Los Angeles, All Items (Revised Series 1947—49=100) available on
said dates, i . e . , May 15 of each year, compared with such index for May 15, 1959 (126.8).
(49)
Other Timing of Review.
Among the remaining escalator clauses
(21), 14 designated one index review during the entire life of the agreement.
In
six instances this meant one possible wage adjustment during a 2-year period;
in eight, the duration was for 3 years. Of the two clauses providing for monthly
review, one, a furniture agreement, provided:
. . . the increase of the cost-of-living allowance shall be determined monthly on the basis
of the index . . . the effective date of the allowance is June 1, 1960, and the adjustments shall
be made on the first day of the calendar month after publication of the index by the U.S. Depart
ment of Labor.
(50)
Although almost all of the escalator clauses provided for adjustment to
whatever changes occurred in the index during a specified time interval, three
clauses tied automatic adjustments to a specific magnitude of change in the price
index.
One such clause, in a bakery agreement, prescribed that:
. . . effective as of February 1, 1963, in the event the cost of living, as measured by the
Consumer Price Index of the Bureau of Labor Statistics for the City of New York, shall increase or
decrease 2 percent, the basic hourly wage rate provided for in this agreement shall automatically be
adjusted by 2 percent and continue to be so automatically adjusted for every 2 percent increase or
decrease occurring thereafter during the life of this agreement.
(51)
Amount of Adjustment
The relationship between movements in the price index and wage rate
changes was determined by formulas spelled out in the contracts.
In most in
stances, a uniform cents-per-hour adjustment was to be made, corresponding to
a specified absolute change in the index.
Some clauses, however, stipulated a
21 Based on agreements in effect in 1963. The National Freight Agreement negotiated by the Teamsters,
effective February 1964, provides for two CPI adjustments during the term of the 3-year agreement.
29
flat percentage adjustment which provided a somewhat larger cents-per-hour
change for higher paid workers. This approach, which maintains relative wage
differentials, has never proved popular; in the current study, it was found in
only 5 percent of the 300 agreements with escalator clauses.
In the escalator clause originally introduced in the GM-UAW agreement
of 1948, the objective of providing wage adjustments proportionate to changes in
the index was implemented by a formula designed to yield a 1-cent adjustment
in wages for every 1.14-point change in the index. The formula was based upon
the average hourly earnings figure for General Motors in the spring of 1948 and
the index which stood at 169. 3 (1935—39*100) in April of that year.
It read
as follows:
ELS Consumer Price Index
Cost-of-living allowance,
in addition to wage scale
by job classification
(cents per hour)
164.6 or less164. 7-165. 8
165.9-166.9
167.0-168.1
168.2-169.2
169. 3-170. 3
170.4-171.5
None
1
2
3
4
5
6
and so forth, with 1-cent adjustment for each 1.14-point change in the index.
With the rise in average hourly earnings and changes in the base of the
index, which were made on two occasions since 1948, the formula has been
modified accordingly. In the spring of 1953, amendments to the basic agreement
provided for adjustments related to the 1947-49*100 base period. The new pro
visions specified a 1-cent wage adjustment for each 0. 6-point change. The 1955
contract altered the ratio to 1 cent per 0.5-point change in the index which was
retained in the I960 agreement.
With the latest change in the reference base
in 1962, the parties again adjusted the escalator formula.
The current ratio,
based on 1957—59=100 base period is as follows:
BLS Consumer Price Index
Cost-of-living allowance,
in addition to wage scale
by job classification
(cents per hour)
106. 4 or less106. 5-106.8
1 0 6 .9 - 107.2
107. 3-107.6
107. 7-1 08 .0
108.1-108.4
1 0 8 .9 - 109.2
None
1
2
3
4
5
6
and so forth, with 1-cent adjustment for each 0 .4 change in the index.
Because its purpose is to adjust wages in proportion to changes in the
CPI, the formula is predicated on the relationship between the firm 's average
hourly wage rate and the price index at the time of agreement.
To illustrate
this relationship, consider an escalator clause negotiated in the midfifties in an
establishment whose average wage rate is $ 2 .5 0 an hour.
The CPI stands at
30
115.0 (1947—49 =100).
Under these circumstances, 1-index point would be pro
portionate to 2.2 cents in wages, or 1 cent for each 0.46 point.
In order to
provide adjustments which approximated this ratio throughout the agreement, the
parties might set up a formula designating a 1-cent adjustment for each 0. 5-point
change in the index.22
When a new base period for the Consumer Price Index is introduced, the
parties will tend to adopt it although the series using_the old base period will
continue to be available. However, the same formula will not yield the same
adjustments when used in conjunction with a new base period.
Prices in the
1957—59= 100 base period, for example, averaged higher than in the 1947—49= 100
base period.
Therefore, a given rise in average prices will be reflected in a
larger increase in points than in the case of the index using the 1957—59 base. 23
To maintain the wage-price relationship, a new formula must be cal
culated when a new base period is introduced.
If, in the example cited above,
the average wage rate has risen to $3 an hour and the index stands at 110.1
(1957—59 = 100), 1-index point would be proportionate to 2 .7 cents, or 1 cent for
each 0. 37 points in the index.
The formula likely to be adopted would be a
1-cent adjustment for each 0.4-point change.
It should be noted, however, that this method of working out an escalator
formula is probably typical of only major bargaining situations.
In most other
cases, the parties are likely to adopt the formula worked out in widely pub
licized agreements.
Another qualification which should be pointed out is that, in practice,
most escalator clauses establish index brackets. In order for an adjustment to
be made, the index level must move into another bracket.
Thus, even small
changes in the index (0. 1 point, for example) may require an adjustment if the
change carries the index into the next higher or lower index bracket.
The amount of the cost-of-living allowance which shall be effective for any 3-month period
beginning December 1, 1964, and thereafter, shall be in accordance with the following table:
Cost-of-living allowance,
in addition to wage scale
BLS Consumer Price
Index— A ll Items
by job classification
(cents per hour)
1 0 6 .1 - 1 0 6 .4 ---------------------------------------------------------------1 0 6 .5 - 106.8 ------------------------------------ — -------- ---------------1 0 6 .9 - 107.2 --------------------1 0 7 .3 -1 0 7 .6 — -----------1 0 7 .7 - 1 0 8 .0 ------------- ------------ — .................— ...................
1 0 8 .1 - 1 0 8 .4 ------------------------ --------------- ................................
1 0 8 .5 - 108.8 — ........... - ------------------------------------- -----------1 0 8 .9 - 109.2 ......
and so forth, with 1-cent adjustment for each 0. 4 change in the index.
1
2
3
4
5
6
7
8
(52)
22
Since this formula is based on average wages for all employees in the bargaining unit, workers earning more
than die average would be compensated less than proportionately, while those earning less would be overcompensated.
For example, between January and July in 1964, the index rose 0.6 points (107. 7—108. 3) on the 1957—59
base, but 0.8 points (132.1—132.9) on the 1947—49 base. See appendix A.
31
In some cases, in computing the change in the CPI required to adjust the allow
ance, the parties may become so precise that rounding is considered.
Thus,
they adjust the scale so to accommodate the necessity of making wage adjust
ments in full cent changes.
On September 1, 1962, there shall be a review and adjustment in wages of all employees
in the following manner:
(a) The cost-of-liv in g index of the Bureau o f Labor Statistics as fixed for the City of New
York shall be consulted as soon as available for September 1, 1962.
(b) In the event such cost-of-liv in g index figures show an increase over the cost-of-liv in g
index figures for September 1, 1961, there shall be a corresponding increase in the wages of
each em ployee equal to 1 cent per hour for each 1 point of increase in the index figure.
(c ) In the event that a cost-of-liv in g increase becom es necessary and such change includes
a fraction of a point, any fraction below 0. 5 shall be disregarded, and any fraction o f 0. 5 or
over shall be considered a full point.
(53)
Selected Formulas. Formulas in the National Freight Agreement of the
trucking industry and those in meatpacking and retail food agreements are as
follows:
The amount of the cost-of-liv in g allowance shall be determined and redetermined as pro
vided below on the basis of the U.S. Consumer Price Inde* for Urban Wage Earners, etc., (1957—59=100)
and referred to herein as the index.
The first cost-of-liv in g allowance shall be effective the first pay period, beginning on or
after February 1 , 1966, based on the difference between the base index figure of June 1965, and the
index figure for Decem ber 1965, and shall continue in effect until the first pay period beginning on
or after March 31, 1967. The next adjustment shall be made on March 31, 1967, based on the index
for January 1967. Adjustments in the cost-of-liv in g allowances shall be made on the basis o f changes
in the index as follows: The base index figure shall be the figure for June 1965 (which is announced
in July 1965). A ll future increases shall be calculated on such base as follows: For every 0. 3-point
increase in the index there shall be a 1 cent per hour or 0. 25 m ill per m ile adjustment, except
that the fourth, eighth, and twelfth intervals shall be based on a 0 . 4-point index change.
For
example:
Index increase from
June 1965 base
Cents per hour
First
0. 3 point
Second
. 3 point
Third
. 3 point
Fourth
. 4 point
Fifth
. 3 point
Sixth
. 3 point
Seventh . 3 point
Eighth
. 4 point
Allowance per mile
$0. 25 m ill
. 50 m ill
. 75 m ill
1 .0 0 m ill
1.25 m ill
1. 50 m ill
1. 75 m ill
2 . 0 0 mill
1
2
3
4
5
6
7
8
and so forth, with 1 cent per hour or $0. 25 m ill per mile adjustment thereafter
for each 0 .3 - or (0 .4 -p oin t where applicable) change in th e index.
5 jt
5}C
sje
(54)
32
Cost-of-living allowance: If as of any May 15 or November 15, during the life of the
agreement, the Consumer Price Index U . S. -N ew Series— For Urban Wage Earners and Clerical Workers
(Including Single Workers) of the Bureau of Labor Statistics, U. S. Department of Labor (1957—59=100)
(hereinafter referred to as the CPI) has risen to a level which is a full 0 .4 or more higher than the
level of 1 07 .8 (May 1964) then effective on die first full pay period beginning on or after the
July 1 following such May 1 or the first full pay period beginning on or after the January 1 following
such November 15, as the case may be, all employees shall receive a cost-of-living allowance of
1 cent per hour for each full 0 .4 by which the CPI exceeds the level of 1 0 7 .8 .
If after a costof-living allowance has been in effect, it shall be found that as of any later May 15 or November 15 the
CPI has decreased during the preceding 6 months, then effective on the first full pay period on or
after July 1 or January 1, as the case may be, the cost-of-living allowance shall be decreased 1 cent
for each full 0 .4 decrease in the CPI below the level which the CPI was required to reach in order
to earn the last previous amount of allowance. For example:
Date
CPI level
November 15, 1964 -----------------------------M a y lS , 1965.................................................
November 15, 1965......................................
May 15, 1966.................................................
November 15, 1966......................................
M a y l 5 , 1967.................................................
Amount of cost-of-living
allowance
(in cents)
1 07 .8
1 08 .2
1 0 8 .5
1 0 8 .6
1 0 8 .4
1 08 .2
None
1
1
2
2
1(55)
* * *
Adjustment shall be made on the basis of Vg cent per V 4 point of increase in the new
Consumer Price Index for Los Angeles, A ll Items (1947—49=100), in excess of 3 V 2 cents for
each year of this agreement. For the first year the base index shall be the index for February 1964
(1 3 5 .9 ).
The cost-of-living increases shall be made on the following basis:
Rise in index over
the base index
0 . 0 up to 2 . 0
2 . 0 up to 2 .3
2. 3 up
2. 5 up
2 . 8 up
3 .0 up
3 .3 up
3. 5 up
3 . 8 up
etc.
to
to
to
to
to
to
to
2 .5
2. 8
3 .0
3. 3
3. 5
3. 8
4 .0
Increase
(in cents)
0
l/z
1
3
31/Z
4
Each year a new base index shall be established which shall be the February index next
preceding the beginning of the contract year, and the cost-of-living increase to be effective at the
end of that year shall be based on increases over such base in each year, in accordance with the
chart set forth above. A ll increases provided under this paragraph shall remain in effect for the
duration of the agreement.
(56)
Not all escalator formulas applied to changes in the index during a
single time period. In six agreements, all with quarterly review, the ratio was
based on the average of the monthly indexes within the review intervals.
This
procedure was used in four clauses in aerospace contracts as well as in two
chemical agreements. One of the chemical plans provided:
33
The index for the 3 months starting with March 1962, shall be averaged to the nearest
1/10 point and each subsequent 3-month period ending with February 1965, shall also be averaged.
From the average index thus obtained the agreed upon base index o f 128. 2 for March 1962, through
February 1963; of 128.8 for March 1963, through February 1964; of 129.4 for March 1964, through
February 1965, shall be subtracted to give the index difference.
For each full 0. 5 o f index difference thus obtained, each em ployee w ill receive a bonus
o f 1 cent for each paid hour credited to him for those weeks actually paid during such 3-month
period.
(57)
Although the bulk of the flat-sum cost-of-living formulas specified centsper-hour adjustments for fluctuations in the index, a small group prescribed
change in the weekly or monthly wage:
Based upon the 1957—59 revised Consumer Price Index for San Francisco at 106.3 in
D ecem ber 1961, the wage rates contained in the agreement shall be subject to revision up or down
quarterly, to be effective on the first day o f the first payroll week following quarterly publication of
the changes in the index by the U. S. Bureau of Labor Statistics. Any increase of 2 points beyond
106. 3 w ill becom e effective with the first payroll week follow ing quarterly publication o f the changes
in the index by the U. S. Bureau o f Labor Statistics.
Wage adjustments for changes up or down in the cost-of4iving index for the period October 23,
1961, to October 23, 1964, as follows:
Cost o f living goes up to—
112.3— plus $ 2
110. 3— plus $ 2
108.3— plus $ 2
106. 3— base
with $ 2 per week change for each further change of 2 full points in the index above 106.3.
(58)
***
The amount o f the cost-of-livin g allowance which shall be effective for each quarter shall
be in accordance with the following table:
BLS Consumer
Price Index
(1947-49=100)
Dollars per month
cost-of-liv in g
allowance
119. 4 or less------------------------------------1 1 9 .5 - 1 1 9 .9 ................................
1 2 0 .0 - 120.4 ..........................
1 2 0 .5 - 120.9 ....................................
1 2 1 .0 - 1 2 1 .4 ..........................
1 2 1 .5 - 1 2 1 .9 ......................- ...........
None
$1.73
3 .46
5.19
6.92
8 .6 5
and so forth, with $1.73 adjustment for each 0 .5
change in the index.
(59)
Several clauses designated percentage increases in wages when changes
occurred in the index. In some instances, this meant an increase in the same
amount as the percentage increase in the index. For example:
Effective July 1, 1964, the first-shift hourly wage rate shall be increased percentagewise
(rounded to the nearest cent) in the same amount as the percentage increase in the cost o f living
between May 15, 1963, and May 15, 1964, as measured by the BLS Consumer Price Index for
U. S. Large Cities; provided that such increase shall not be less than 10 cents per hour greater than
the 1963 wage rate.
(60)
34
In a small number of local transit agreements, the amount of adjust
ment in cents per hour for all employees was determined by applying the per
centage increase in the index to the top rate for operators:
The percentage increase, if any, in the Consumer Price Index from September 15, 1964, to
D ecem ber 15, 1964, w ill determine the percentage increase to be added to the rates of pay specified
in the agreement as o f March 1, 1965, except that the adjustment, if any, shall be made to the
nearest cent and the amount resulting for the top operator's rate shall be applied to the rates for all
employees covered by this agreement.
(61)
Another adjusted wages on a percentage basis in relation to point-topoint fluctuation in the index:
The amount o f the cost-of-liv in g allowance which shall be effective for the 3-month periods
shall be made in accordance with the following table:
BLS Consumer
Price Index
(1947-49=100)
125.9-126.4 ...............—
126.5-127. 1 ..................
127. 2-127.7 --------------127.8-128.3 — .............
128.4-129.0 --------------129.1-129.6 ..................
129.7-130.3 ............. —
130.4-130.9 --------------131.0-131.5........... ......
131.6-132.2 — ..........—
Revised cost-of-liv in g
allowance
(percent)
1V2
1
/2
0
y*
i,.
1 V2
2i,
2 V2
3
etc.
One clause in a particularly specialized agreement provided:
In the event the cost of living (as reflected by the Consumer Price Index o f the U. S. Bureau
o f Labor Statistics) shall rise during the period June 1, 1962, to June 1, 1963, in a percentage higher
than the corresponding increases in minimum salary and rehersal expense money effective June 1,
1963, under this rule, said minimum salary and rehersal expense money shall be increased effective
June 1 , 1963, to reflect the increase of the cost of living over and above the corresponding increases
provided for hereunder.
(63)
Limits on Adjustments
Although the Consumer Price Index has declined rarely in the postwar
period, almost all escalator clauses include absolute floors below which wages
cannot be decreased.
These, however, have never been tested and, in most
instances, the floor selected has remained considerably below the current index
throughout the contract life.
Nevertheless, limits, generally at the base rate,
35
are stipulated in case of a substantial drop in the index. Over two-thirds of the
clauses emphasized that basic wages were not subject to reduction because of
downward fluctuations in the index. Meatpacking contracts, for instance, generally
did this in the following manner:
The cost-of-liv in g allowance payable at any time shall be in addition to the wage rate
payable under the terms o f this agreement, and no reduction shall at any time be made below the
said rate.
(64)
Similarly,
clauses in trucking agreements often read:
. . . a decline in the index shall not result in a reduction o f classification base rates.
(54)
Automobile and related industry contracts set boundaries in these terms:
In no event w ill a decline in the BLS Consumer Price Index below 106. 5 provide the basis
for a reduction in the wage scale by job classification.
( 1)
* * *
In no event w ill a decline in the BLS Consumer Price Index provide a basis for reduction
in the straight-time hourly rate for each classification covered by this agreement below the level
at which the straight-time hourly rate includes no cost-of-liv in g allowance.
(65)
* * *
It is agreed that ohly the cost-of-liv in g allowance w ill be subject to reduction so that, if
a sufficient decline in the cost of living occurs, employees w ill im mediately enjoy a better standard
o f living.
( 66)
Other clauses, while not containing statements similar to the above provisions,
depicted the allowance as a separate bonus or as strictly an addition to the wage
rates.
For example:
There shall be paid to each employee a cost-of-liv in g allowance in the amount indicated
below for a period o f 1 year after October 1, 1962, or 11 months after October 1, 1963, as the case
may be, in addition to the minimum straight-time wage rates if, but only if, the BLS Consumer
Price Index, Revised Series, for Los Angeles, A ll Items, shall have risen as. o f the preceding
August 15 to a point set forth in the schedules.
(67).
* * *
No bonus w ill be paid for a calendar quarter that the Bureau o f Labor Statistics average
quarterly index figure stands at or below the 128.5 base index figure (1947—49=100).
(68)
sjc sje sje
36
In addition to die base rate of pay of each em ployee a cost-of-liv in g bonus shall be paid
to each employee based upon changes in the cost o f living.
Amount o f
cost-of-liv in g
BLS Consumer
adjustment
Price Index
(per hour)
100. 0—125.9 -------- -------- - ...............
1 2 6 .0 -1 2 6 .4 ---------------------- -------1 2 6 .5 -1 2 6 .9 .............. .................— etc.
None
0.01
.02
(69)
Upward limits on allowances were incorporated in 1 out of 10 escalator
clauses.
In most instances, ceilings were applied to individual adjustments or
to adjustments during a prescribed period within the term of the agreement.
The amount o f rise in the cost-of-liv in g allowance shall be lim ited to 1 cent during the first
year o f the agreement, 2 cents during the second year of the agreement, and 4 cents thereafter.
(70)
* * *
At no time shall the cost-of-liv in g adjustment result in any increases in rates above the
maximums set forth below:
July
July
July
July
July
1,
1,
1,
1,
1,
1961— up
1962— up
1963— up
1964— up
1965— up
to
to
to
to
to
5 cents
2 V 2 cents more
272 cents more
8 cents more
10 cents more
total
total
total
total
maximum— 7^ 2 cents
maximum — 10 cents
maximum— 18 cents
maximum— 28 cents
(49)
* * *
The amount o f the cost-of-liv in g adjustment w ill be separately computed for each 3-month
period and w ill be a 1-cent hourly increase for each 1 point rise in the BLS Consumer Price Index
above 125. 9, but not in excess of 2 cents in each contract year. Should the index rise more than
2 points during the first or second contract year, the excess points shall be carried forward to the fo l
lowing year when computing the cost-of-liv in g adjustment on the Monday nearest to each June 1. (71)
* * *
. . . there shall be paid a cost-of-liv in g factor (subject to the maximum indicated below)
based on such index and adjusted upward or downward as follows:
Index at
or above
(1957—59=100)
C ost-of-living
factor
(cents per hour)
1 1 0 . 0 ------------------------------------1 1 0 . 4 ...............
—
None
1 1 0 .8 ............................ — ............................. ...............
1 1 1 . 2 ................................ ...................... ......................1 1 1 . 6 ----------------------------------------------------- ------------------- —
2
3
4
112.0 — -------1 1 2 . 4 ..........................
6
1
5
1 1 2 . 8 ........ ................... ...........
7
1 1 3 . 2 ---------------------------------------
8 (maximum)
(72)
37
In several cases, the limitations on adjustments within a time period or on
individual adjustments applied to downward as well as upward movements.
The maximum increase or decrease in the cost-of-living allowance is 1 cent for any
established quarter.
The maximum increase or decrease in the cost-of-living allowance is 3 cents during the
contract year ending July 1, 1962, and again during the contract year ending June 30, 1963.
(73)
* * *
The total increase or decrease in cost-of-living allowance shall not exceed 12 cents between
the March 1 adjustment period o f i year and the March 1 adjustment period of the next year.
(74)
Some-agreements, notably in metals and machinery, did not categorically
prohibit reductions in allowances, but required that the amount of decrease under
the formula be at least a certain amount before the full amount of the appropriate
decrease be made.
Notwithstanding any decrease in the BLS Consumer Price Index, there shall not be any de
crease in any existing cost-of-living adjustment unless the amount of the decrease in the adjustment
under such table is at least 2 cents, at which time the full amount of the appropriate decrease
shall be made. (48)
Status of Past Allowances. Escalator gains made under previous con
tracts may be carried over intact to the new agreement. In this case, they are
subject to reduction if the index declines. In order to prevent reduction, negotia
tors often insert provisions requiring the full or partial incorporation of past
allowances into the base rate structure.
For example:
Effective September 7, 1964, 9 cents shall be added to the base hourly rate for each classi
fication, including minimum and maximum rate for spread rate classifications. An equal amount of
9 cents shall be deducted from Ihe 14 cents cost-of-living allowance which shall be in effect through
September 6 , 1964, and thereafter the cost-of-living allowance shall be computed in accordance
with the table.
(39)
* * *
It is agreed by the parties that all cost-of-living increases prior to February 1, 1961, have
been included in the general increases herein provided for and frozen into the rates.
( 75)
* * *
Under the agreement of November 20, 1961, between the company and the union, a costof-living allowance of 16 cents per hour had been established for the period ending November 30, 1964.
Effective September 22, 1964, 10 cents of the above cost of living shall be added to the
base hourly rate of each employee, but such amount shall not be included in the incentive base
rate used for the purpose of incentive pay calculations. An equal amount of 10 cents shall be
deducted from the cost-of-living allowance in effect September 1, 1964.
(52)
♦ ♦ ♦
38
As o f July 1, 1963 (date o f last adjustment period), the BLS CPI stood at 130.3 which
represented a cost-of-livin g allowance of 13 cents per hour. However, on January 1, 1962, 1 cent
o f the allowance was transferred to the pension fund making the float as of July 1, 1963, 12 cents
per hour. During the first pay period o f February 1964, 5 cents of this 12 cents cost-of-livin g
allowance w ill be transferred into the hiring rate and the base rates o f all classifications.
The
union is foregoing the 2 cent cost o f living due during the first pay period of October 1963.
There
fore, during the first pay period of February 1964, the cost-of-liv in g float w ill be 7 cents plus or
minus any change which may occur on January 1 , 1964.
(76)
5je * *
Effective as o f the date of this present agreement, 13 cents for each work hour for each
classification covered by this agreement shall be deducted from said cost-of-liv in g allowance and
added to the regular base hourly rate for each classification covered by this agreement, leaving
6 cents for each work hour as the present cost-of-livin g allowance for each of the classifications
covered by the present agreement.
(77)
Incorporation into the base rate is not the only method of protection.
A number of contracts carry some or all of the allowances gained under previous
agreements as a supplement or add on to the wage structure, unaffected by sub
sequent changes in the index. Where a number of costs (overtime, vacation pay,
etc.) hinge on the base rate, whether to use this approach instead of incorporation
may be a significant issue.
The nadd on" method was common in primary and
fabricated m etals,24 although examples may be found in other industries. A
chemical clause provided:
It has been further agreed that 8 cents of the cost-of-liv in g bonus in effect as o f the last
quarter, Decem ber 1961, January and February 1962, shall continue to be paid as a cost-of-liv in g
bonus for the duration o f this agreement over and above any additional cost-of-liv in g bonus obtained
as described above in this section.
(57)
Cost-of-Living Allowance and Computation
of Overtime and Fringe Benefits
Cost-of-living adjustments were to be included in overtime computations
as well as in the determination of some fringe benefits in slightly more than
half of the agreements with escalation. The bulk of the plans which referred to
the inclusion of adjustments in overtime and/or fringe benefit computation oc
curred in manufacturing, primarily in transportation equipment and food. Corre
spondingly, the nonmanufacturing agreements generally did not contain reference
to this use of the adjustment.
Only in a few cases was reference made to overtime alone.
In most
instances, provisions for allowance incorporation included overtime and such
benefits as holiday pay, vacation pay, sick leave pay, shift premiums, and call-in
pay.
In some cases, jury duty and death-in-family benefits, as well as other
items, were included. A number of illustrative clauses are reproduced below.
The cost-of-liv in g allowance shall be taken into account in computing overtime, Sunday,
holiday, and shift premiums, and in determining ca ll-in pay and pay for vacations, unwoiked holidays,
jury duty and bereavement.
(39)
* * *
24 For instance, in the 1962 basic steel settlement, the 18.5 cent-an-hour escalator allowance accumulated under
previous contracts was maintained as an addition to pay rates, but was not incorporated into the basic pay schedule.
39
The amount of any cost-of-liv in g allowance in effect at the time shall be included in
computing overtime premium, night-shift premium, vacation payments, holiday payments, and
ca ll-in pay.
(78)
❖ * *
In computing overtime pay, vacation pay, holiday pay, and ca ll-in pay, the amount of
any cost-of-liv in g allowance then in effect shall be included.
(79)
* * *
The amount of cost-of-liv in g adjustment in effect at the time shall be used in computing
wage payments and other benefits, such as vacation, sick leave, and holiday payments.
( 20)
* ❖ *
The amount of any cost-of-livin g bonus in effect at the time shall be used in computing
overtime, vacation, sick leave, holiday, and jury duty, and jury duty examination payments and
for no other purpose.
(80)
* * *
The amount of any cost-of-liv in g adjustment applied during the period this section is in
e ffe ct shall be in addition to the base wage rate of each hourly employee and shall be applied in
determining currently effective pay rates for the following purposes subject to the applicable pro
visions o f this agreement:
(1)
(2)
(3)
(4)
(5)
Overtime pay
Holiday pay
Vacation pay
Sick leave pay
Jury duty pay
(81)
A number of agreements, mostly in meatpacking, did not enumerate
benefits but designated inclusion of cost-of-living allowances in all payments
based on regular rates. For example:
The cost-of-liv in g allowance shall be included along with the em ployee's regular hourly
rate in computing all payments under this agreement which are based on a regular hourly rate.
(82)
*
* ❖
The amount o f any allowance in effect at the time shall be included in computing any pay
ments under this agreement which are based on either the regular rate or authorized rate of pay. (46)
* * *
The cost-of-liv in g allowance shall be included along with the em ployee's basic contract
hourly rate in computing all payments under this agreement which are based on the basic contract
hourly rate.
(83)
* * *
It is understood that all job rates used in computing employees' pay shall include the
cost o f living.
(84)
40
Diversion From Cost-of - Living Adjustment
Approximately one-fifth of the escalator clauses stipulated diversion or
possible diversion of adjustment funds (table 4). Under these plans, the allow
ance was computed normally, but part or all of the adjustment was to be made
available to finance other benefits rather than wage supplements.
Perhaps the best known use of cost-of-living diversion resulted from the
1960 steel settlement.
That agreement included a provision to use part or all
of any increase in the cost-of-living allowance to offset costs of insurance above
a specified amount.25 Agreements in other industries, however, also used al
lowances to defray fringe benefit costs. In aerospace, for instance, the following
provisions were incorporated:
In the event the BLS Consumer Price Index rises above 105.7 the appropriate amount of
cost-of-living adjustment in excess of 1 cent shall not be applied to hourly wage rate ranges or to
employee's basic hourly wage rates but in lieu thereof will be applied towards funding the dental
program. This funding from cost-of-living adjustment shall continue until the agreed upon amount
has been diverted to the dental program.
(20)
* * *
On or after October 7, 1963, the first 1-cent-per-hour increase in the cost-of-living
allowance will be paid into a fund, rather than to each employee, along with a matching amount
to be paid by the company. This fund will be used to offset any increased cost of employees' group
insurance benefits.
(85)
* * *
Commencing on the date the next cost-of-living increase in excess of the currently effective
6 cents cost-of-living adjustment amount becomes effective, subsequent to the effective date of this
agreement, 1 cent per hour of such cost-of-living adjustment amount will be placed in a fund to
pay 50 percent of any increase in premium cost of group insurance coverage.
(19)
The following provisions were included in agreements in various other industries:
The cost-of-living allowance in effect since September 4, 1961, shall be reduced by 1 cent
on the cost-of-living effective date of December 4, 1961, in consideration of the agreement between
the parties to provide increased pension benefits.
(86)
* * *
Basic steel agreements dropped escalation in 1962.
The diversion clause read as follows:
I fjh e first published BLS Consumer Price Index for October 1960 is higher than 123.8 (herein called the base
index /1947—49=100/), the cost-of-living adjustment which was in effect on December 31, 1959, shall be increased
during the contract period from December 1, 1960, to September 30, 1961, by the amount indicated by application
of the prior formula, i. e . , 1 cent for each alternate 0.5 and 0 .4 increase in the index over the base index, but
not in excess of 3 cents, reduced by the amount of an insurance escalation credit calculated as follows:
The average monthly net insurance cost per active employee covered for the full benefits of the program for
the calendar quarter ending June 30, 1961, shall be compared with a base average monthly net insurance cost of
$20.16, and an insurance escalation credit in cents per hour shall be determined on the basis of 1 cent for each full
18 cents of the difference between such average monthly net insurance costs.
41
For the purpose of this agreement, any increase up to 3 cents per work hour in the costo f-liv in g allowance, which shall hereafter result from the upward movement of the BLS Consumer
Price Index shall be diverted and applied to partially defray the cost o f the increases and improve
ments in other benefits.
(77)
* * *
The parties have adjusted the cost-of-liv in g allowance table so that the first 1-cent increase
in the cost-of-liv in g allowance which otherwise would have been paid after the signing of this
agreement shall be omitted to pay one-half of the cost of retirees’ group hospitalization-surgicalm edical insurance.
(87)
* * *
Any upward adjustment is not to be available in cash to any employee enrolled in Blue
Cross-Blue Shield (or any substitute program that may be adopted) but is to be applied by the
corporation toward payment o f the employees’ share o f the cost o f such program. In the event of
a reduction in the cost-of-liv in g allowance after a previous increase has been so applied, the union
may e le ct as to whether the reduction is to be reflected in the employees’ Blue Cross-Blue Shield
payments or in the cost-of-liv in g float.
(88)
* * *
If any wage increase is called for by the operation o f the cost-of-liv in g clause in 1962, 1 cent
o f it w ill be used for increased vacation benefits as agreed to by the company and the union.
(89)
* * *
In the event the BLS Consumer Price Index reaches or exceeds 106. 3 on an adjustment date
the company shall:
(a) Pay to the Sangamo Mutual Benefit Association $ 1 .46 per month for each em ployee
member of record on the first of each month.
(b) The company shall provide accidental death and dismemberment insurance for each
em ployee covered by the company’ s group life insurance plan. Any subsequent movement of
the BLS Consumer Price Index above or below 106.3 shall not affect the provisions o f this
paragraph.
(70)
The provisions in 28 trucking plans might correctly be termed npossiblen diver
sions, for they included only an agreement for the parties to determine the use
of future CPI allowances.
It is understood that the parties hereto may determine during the life o f this contract what
application shall be made o f such cost-of-livin g increases in reference to where the same will be
applied on provisions o f this contract. (90)
42
Table 3.
Frequency of Cost-of-JLiving Review in Major Collective Bargaining Agreements
by Industry, 1963
(Workers in thousands)
Number with
provisions
Industry
Agree
ments
All industries — ------- — —
Quarterly
Sem iannually
Work
ers
Agree
ments
Work
ers
Agree
ments
Annually
Work
ers
Agree
ments
Other 1
Work
ers
Agree
ments
Work
ers
300
1, 757.9
166
1, 073.6
49
156.6
64
475. 0
21
52. 7
208
1, 229.6
151
J, 035. 5
33
95.6
12
66.9
12
31.6
12
28
6 3 .8
92. 1
12
4
63. 8
9. 3
22
76. 5
-
-
2
6. 3
7
10
15
15.8
15.9
35.4
25
6
9
13.0
8 .4
15.4
1
2
3
1.0
4. 1
7 .6
_
1
1
_
2 .0
2 .9
1
1
2
1.9
1. 5
9 .5
35
159.6
27
143. 1
5
6. 5
3
10.0
"
-
14
71
32. 5
784.8
12
3 63
27.7
729.0
-
-
4
4 8 .2
2
4
4. 8
7 .7
16
29.9
13
26. 1
-
-
3
3 .8
-
-
Nonmanufacturing_______________
92
528.3
15
38. 2
16
61. 0
52
408. 1
9
21. 1
Transportation4 ------------------------------Retail trade--------------------------------------Miscellaneous nonmanufacturing
industries------ — - .
.. — —
52
32
4 3 7.5
77 .9
12
1
34. 5
1. 2
3
11
11.9
46. 2
33
16
380. 1
21.9
4
4
11. 1
8.6
8
13.0
2
2 .5
2
2 .9
3
6. 1
1
1. 5
Manufacturing____
— . . __ —
Ordnance and accessories-------------Food and kindred products------------Chemicals and allied
products------------- — — ------- —
Primary metal industries--------------Fabricated metal products------------Machinery, except
electrical------- ------— __
Electrical machinery, equipment,
and supplies — — — — — — —
Transportation equipment.. — . .
Miscellaneous manufacturing
industries. ------------ -.
-------
-
-
-
1 Includes 14 with one review during the term of the agreement, 3 which specified adjustment whenever index fluctuated
by specified amount, and 2 with monthly review. Information regarding review frequency was not available for 2 agreements.
2 4 agreements provided for an average of monthly index figures.
3 2 agreements provided for an average of monthly index figures.
4 Excludes railroad and airline industries.
NOTE: Because of rounding,
sums of individual items may not equal totals.
Table 4. Diversion From Cost-of-Living Increases in Major Collective Bargaining Agreements
by Industry, 1963
(Workers in thousands)
Industry
Number with
provisions
Agree
ments
All industries-----------------------
300
Work
ers
1 ,7 5 7 .9
Provides for
diversion
No reference
to diversions
Agree
ments
Agree
ments
Work
ers
Work
ers
242
1, 331. 8
58
426. 1
1, 149.1
30
80.5
*3
“
13.8
208
1, 229.6
178
Ordnance and accessories------------Food and kindred products-----------Chemicals and allied
products---------------------------------------Primary metal industries------------Fabricated metal products-----------Machinery, except electrical-------Electrical machinery,
equipment, and supplies------------Transportation equipment------------Miscellaneous manufacturing
industries-------------------------------------
12
28
63. 8
92. 1
9
28
7
10
15
35
15. 8
15.9
35 .4
159.6
7
4
10
33
15.
4.
23.
157.
8
8
5
3
6
5
2
11.1
11.9
2. 3
14
71
32. 5
784. 8
13
60
30.9
747. 4
1
11
1.6
37. 5
16
29.9
14
27. 5
2
2 .4
Nonmanufacturing----------------------
92
528. 3
64
182.7
28
345.6
Transportation2 -----------------------------Retail trade------------------------------------Miscellaneous nonmanufacturing
industries-------------------------------------
52
32
437. 5
7 7.9
24
32
91 .9
77.9
3 28
345.6
8
13.0
8
13.0
Manufacturing__________________
50. 0
92. 1
1 In 1 agreement, diversion of allowance is at the option of union.
2 Excludes railroad and airline industries.
3 Diversion to be determined by the parties.
NOTE: Because of rounding,
sums of individual items may not equal totals.
'
'
"
Appendix A
C onsum er P ric e Index1— U.S. City A verage for Urban Wage E arn ers
and C le rica l W o rk e rs, 2 A ll Item s
1962
Date
1963
1947-49=100
1957-59=100
1947-49=100
1957-59=100
N ovem ber
______ _ „
_____________
D e c e m b e r --------------------------------------------------------------------------------------
128.2
128.6
128.8
129.1
129.1
129.2
129.4
129.4
130.2
130.1
130.1
129.8
104.5
104.8
105.0
105.2
105.2
105.3
105.5
105.5
106.1
106.0
106.0
105.8
130.1
130.2
130.3
130.3
130.3
130.8
131.4
131.4
131.4
131.5
131.8
132.0
106.0
106.1
106.2
106.2
106.2
106.6
107.1
107.1
107.1
107.2
107.4
107.6
Annual a v e r a g e _________________________________
129.3
105.4
131.0
106.7
January _____ ____ _________ _____ __
F e b r u a r y _____________ _______________
M a r c h ______________ ______ _______
A p r i l ___________________________________
M a y ____________________________________
J i i n p . . , _________________________
July
. . . . . . . . . . ____________
.............................................................
A u gu st
„
Septem ber
________________
____________________
O c to b e r
1964
1965
1947-49=100
1957-59=100
1947-49=100
1957-59=100
Ju ly ________________________________________________________________
____ __________________
AUgUSt —
n-nrr-. __
__
________
Septem ber____ _ _ ____
October ___ ____ __ _____________ ________
Novem ber
__ _________________r__________________________,
Decem be r ________________________________ __
132.1
132.0
132.1
132.3
132.3
132.5
132.9
132.8
133.0
133.1
133.4
133.5
107.7
107.6
107.7
107.8
107.8
108.0
108.3
108.2
108.4
108.5
108.7
108.8
133.6
133.6
133.7
134.1
134.5
135.1
135.2
135.0
135.2
135.5
135.7
108.9
108.9
109.0
109.3
109.6
110.1
110.2
110.0
110.2
110.4
110.6
Annual a v e r a g e _________________________________
132.6
108.1
J a n u a r y ____________________________________________________________
F e b r u a r y _________________________________________________ _
M a rch __________________ ____ _____________ __ ___
A p r i l _________ _________________________________ _______________
M a y _____________________________________________________________
.Tune
_
__ _____
_____
1 Beginning January 1964, the index structure has been revised .
2 Includes single w o rk ers, beginning January 1964.
43
Appendix B. Selected Deferred Wage Increase Clauses Reproduced in Full
From the agreement between
GENERAL MOTORS CORP. AND
INTERNATIONAL UNION, UNITED AUTOMOBILE,
AEROSPACE AND AGRICULTURAL
IMPLEMENT WORKERS OF AMERICA
(expiration date: September 1967)
(101 )(a) The annual improvement factor provided herein recognizes that a continuing
improvement in the standard of living of employes depends upon technological progress, better
tools, methods, processes and equipment, and a cooperative attitude on the part of all parties
in such progress. It further recognizes the principle that to produce more with the same
amount of human effort is a sound economic and social objective. Accordingly, effective as of
September 6, 1965, each employe covered by this agreement shall receive an annual im
provement factor increase of 2 xh percent of his straight-time hourly wage rate (exclusive
of cost-of-living allowance and shift premium), or 6 cents per hour, whichever is the greater
in accordance with table I:
Table I
Annual
improvement
factor increase
(cents per hour)
Straight-time
hourly
wage rate*
Less than $2. 60----------------------------------$ 2 .6 0 —$ 2 . 9 9 ...........................................................
$ 3 .0 0 —$ 3 . 3 9 ...........................................................
$ 3 .4 0 —$3. 7 9 ...........................................................
$ 3 .8 0 —$ 4 . 1 9 ...........................................................
$4. 20—$4. 5 9 ...........................................................
$ 4 .6 0 —$ 4 . 9 9 ...........................................................
$ 5 .0 0 —$ 5 . 3 9 ...........................................................
6
7
8
9
10
11
12
13
Effective as of September 5, 1966, each employe covered by this agreement shall
receive an annual improvement factor increase of 2.8 percent of his straight-time hourly
wage rate (exclusive of cost-of-living allowance and shift premium), or 7 cents per hour,
whichever is the greater, in accordance with table II:
Table II
Annual
improvement
factor increase
(cents per hour)
Straight-time
hourly
wage rate*
Less than $ 2 .6 8 -------------------------$ 2 .6 8 —$ 3 . 0 3 ...........................................................
$ 3 .0 4 —$3. 3 9 ...........................................................
$ 3 .4 0 —$3. 7 4 ...........................................................
$ 3 .7 5 —$ 4 . 1 0 ...........................................................
$ 4 .1 1 —$ 4 . 4 6 ...........................................................
$ 4 .4 7 —$ 4 . 8 2 ........................................................
$ 4 .8 3 —$ 5 . 1 7 ...........................................................
$ 5 .1 8 —$5. 5 3 ...........................................................
7
8
9
10
11
12
13
14
15
NOTE: In the case of a classification, the rate for which is
determined by a wage rule in die local wage agreement relating
the rate for the classification to the rate for another classification
or classifications, the above tables will determine the rate for the
classification where there is a conflict with such wage rule.
* The "straight-time hourly wage rate" for an employe paid
under an incentive method of pay is defined in appendix E.
45
46
(b) In addition, effective September 5, 1966, each employe covered by this agreement
shall receive a wage increase of 2 cents per hour.
This 2 cents per hour shall be added
to the "wage rates" or "base rate" as provided in paragraphs (101)(d) or (101)(e)(l) whichever
is applicable, after such "wage rates" or "base rate" have been adjusted to include the
September 5, 1966, annual improvement factor increase provided for in paragraph (1 0 1) (a)»
(c) In addition, each employe covered by this agreement shall receive a cost-of-living
allowance in accordance with the provisions of paragraphs (101)(g) and (101)(h).
It is agreed that only the cost-of-livin g allowance will be subject to reduction so
that, if a sufficient decline in the cost of living occurs, employes will immediately enjoy
a better standard of living. Such an improvement will be an addition to the annual improve
ment factor increase provided for in paragraph (101)(a).
(d) The improvement factor increases in base rates provided for in paragraph (101)(a)
and the 2 cents-per-hour increase provided for in paragraph (101)(b) shall be added to the
wage rates (m inim um ,. intermediary, and maximum) for each daywork classification.
(e)
(1) The amount of the improvement factor increase shown in the tables in para
graph (10l)(a) for the "straight-tim e hourly wage rate" of an incentive job classification and
the 2 cents-per-hour increase provided in paragraph (101)(b) shall be added to the base rate
of that job classification, except as the parties to this agreement may provide otherwise
in writing.
From the agreement between
GENERAL ELECTRIC CO. AND
INTERNATIONAL UNION OF ELECTRICAL,
RADIO AND MACHINE WORKERS
(expiration date: October 1966)
1963—66 Wage Agreement
1. The increases provided for herein include those made effective through April 2,
1962, and this wage agreement replaces and supersedes the wage agreement between the
company and the union dated the 22d day of October I960.
2.
General increases.
(a) Effective as of the dates indicated below the company will grant, in the manner
provided herein, general wage and salary increases as follows:
(1) For those units which elected the 3 percent increase effective Apr. 2, 1962:
Date
Increase
Sept. 23, 1963. —
3. 1 percent, but not less than 5 cents per hour.
Apr. 5, 1965_____________ 2.5 percent, but not less than 5 cents per hour.
(2) For those units which elected the 4 percent increase effective Apr. 2, 1962,
and not later than Nov. 15, 1963, does not choose an 8th paid holiday:
Date
Increase
Sept. 23, 1963.__
2.5 percent, but not less than 5 cents per hour.
Apr. 5, 1965___________ — 2.5 percent, but not less than 5 cents per hour.
(3) For those units which elected the 4 percent increase effective Apr. 2, 1962,
and not later than Nov. 15, 1963, does choose an 8th paid holiday:
Date
Increase
Sept. 23, 1963---------— — 2.5 percent, but not less than 5 cents per hour
and decreased by 0.4 percent.
Apr. 5, 1965____________ 2.5 percent, but not less than 5 cents per hour.
(b) The percentages and minimums set forth in (a) above shall, for the appropriate
periods as indicated, constitute the amounts by which:
47
(1) The standard daywork step rates in effect on April 2, 1962, as shown in
column 1 and in column 4 of table I of section 3 hereof, shall be increased as shown
in the other columns of said table I;
(2) The gross earnings of salaried employees (prior to calculation of any
night-shift differential) shall be increased after such earnings have been computed
on the basis of the employee's salary rate in effect on the date immediately prior
to the effective date of each such increase; and
(3) The gross earnings of incentive workers (excluding any night-shift differ
ential), computed in accordance with the formula and procedures in effect and appli
cable to such incentive work at the time of its performance, shall be increased.
3.
Table I set out below shows the standard daywork step rate structure as modified
as a result of the wage increases provided for by section 2 of this agreement.
Table I
Daywork Step Rates*
Section 2(a)(1) above_____________ ____________ Section 2(aX2) above___________________Section 2(aX3) above
A
B
C
(1)
In Effect
Apr. 2, 1962
3 percent
schedule
(2)
Effective
Sept. 23, 1963
3.1 percent
5 cents
minimum
(3)
Effective
Apr. 5, 1965
2. 5 percent
5 cents
minimum
$1,435
1.475
1.51
1.545
1.58
1.615
1.66
1.695
1.73
1.765
1.805
1.84
1.88
1.915
1.955
2.005
2.05
2.095
2.14
2.205
2.275
2. 345
2.415
2.495
2. 60
2.705
2.815
2.935
3.05
3.165
3.255
3.35
3.44
3.535
3.625
3.71
3.805
3.90
3.99
$1,485
1.525
1.56
1.595
1.63
1.665
1.71
1.75
1.785
1.82
1.86
1.895
1.94
1.975
2.015
2.065
2.115
2.16
2.205
2.275
2. 345
2.42
2.49
2.57
2.68
2.79
2.90
3.025
3.145
3.265
3.355
3.455
3. 545
3.645
3.735
3.825
3.925
4. 02
4.115
$1,535
1.575
1.61
1.645
1.68
1.715
1.76
1.80
1.835
1.87
1.91
1.945
1.99
2.025
2.065
2.115
2.17
2.215
2. 260
2. 33
2.405
2.48
2. 55
2.635
2.745
2.86
2.975
3.10
3.225
3.345
3.44
3. 54
3.635
3.735
3.83
3.92
4. 025
4.12
4. 22
(4)
In Effect
Apr. 2, 1962
4 percent
schedule
(5)
Effective
Sept. 23, 1963
2. 5 percent
5 cents
minimum
(6)
Effective
Apr. 5, 1965
2. 5 percent
5 cents
minimum
$1.45
1.485
1.525
1.56
1.595
1.635
1.675
1.71
1.745
1.785
1.82
1.855
1.90
1.935
1.975
2.025
2.07
2.115
2.165
2.225
2.30
2.365
2.44
2.515
2.625
2.73
2.845
2.965
3.08
3. 20
3.285
3.38
3.475
3.565
3.66
3.745
3.845
3.935
4.03
$1.50
1.535
1.575
1.61
1.645
1.685
1.725
1.76
1.795
1.835
1.87
1.905
1.95
1.985
2.025
2.075
2.12
2.17
2.22
2. 28
2.36
2.425
2.50
2.58
2.69
2.80
2.915
3.04
3.155
3.28
3.365
3.465
3.56
3.655
3.75
3.84
3.94
4. 035
4. 13
$1.55
1.585
1.625
1.66
1.695
1.735
1.775
1.81
1.845
1.885
1.92
1.955
2.00
2.035
2.075
2.125
2. 175
2. 225
2.275
2. 335
2.42
2.485
2.565
2.645
2.755
2. 87
2.99
3.115
3.235
3.36
3.45
3. 55
3.65
3.745
3.845
3.935
4.04
4.135
4. 235
(7)
Effective
(8)
Effective
Sept. 23, 1963
Apr. 5, 1965
2. 5 percent
5 cents
2. 5 percent
5 cents
minimum
less 0. 4 percent
minimum
$1,495
1.53
1.57
1.605
1.64
1.68
1.72
1.755
t. 79
1.83
1.865
*1.90
*1.945
*1.98
*2.02
*2.07
*2.115
2.16
2.21
2.27
2.35
2.415
2.49
2. 57
2.68
2.79
2.905
3.03
3.14
3.265
3.35
3.45
3.545
3.64
3. 735
3.825
3.925
4.02
4.115
$1,545
1.58
1.62
1.655
1.69
1.73
1.77
1.805
1.84
1.88
1.915
*1.95
*1.995
*2.03
*2.07
*2. 12
*2. 17
2.215
2. 265
2. 325
2.41
2.475
2.55
2. 635
2.745
2.86
2.98
3. 105
3.22
3. 345
3. 435
3. 535
3. 635
3.73
3.83
3.92
4. 025
4.12
4. 22
* Revised on September 27, 1963. Increased from original agreement to provide minimum increase of 4 V2 cents.
A)— Top of the progression schedule (in a few works, the top of the progression schedule will be below the rates opposite A).
---- Rates applicable to transfers (Article X, (2)(a)(4)(a and b).
NOTE: Rates below those shown will be on steps of not less than 3 cents.
Rates above those shown will be on steps of not less than 8 cents.
48
4. The wage increases herein provided shall be applicable to all employees (both
hourly paid and salaried) in bargaining units certified to the IUE (AFLr-CIO) or its affiliated
IUE (AFLr-CIO) locals as of September 23, 1963, which as of that date were listed in the
preamble of the 1963 GE-IUE (AFLr-CIO) national agreement. Employees in any bargaining
unit for whom the IUE (AFL—CIO) or any of its locals shall be certified as the collective
bargaining representative after the effective date of this agreement shall receive pay increases
consistent with those provided for by section 2 of this wage agreement, but only insofar as
such increases shall, by the terms of said sections, become effective after the date of such
certification.
5. The provisions of this wage agreement shall continue in full force and effect
between the parties hereto, to and including October 2, 1966.
From the agreement between
CHICAGO LITHOGRAPHERS ASSOCIATION AND
LITHOGRAPHERS AND PHOTOENGRAVERS
INTERNATIONAL UNION *
(expiration date: April 1966)
Minimum Wage Scale
4. The minimum wage scales appended to this agreement shall continue without
change during the term of this agreement. It is understood that employees now receiving
above the minimum wage scale here provided shall not be reduced.
All lithographic employees shall be included in wage increases granted under this
agreement. Increases are to apply to apprentices on the same basis as journeymen and
not prorated over indenture period.
The minimum starting rate for probationary apprentices in any department shall be
not less than $2.25 per hour.
Wage increases granted under this agreement shall be as follows:
Effective August 1, 1963— $3 per week to each employee.
Effective May 1, 1964— 3 l /z percent of basic journeyman
minimum wage scale to each empl oyee according to
classification.
Effective May 1, 1965— 3 l /z percent of basic journeymen
minimum wage scale to each empl oyee according to
classification.
From the agreement between
NATIONAL LOCK COMPANY AND
INTERNATIONAL UNION, UNITED AUTOMOBILE,
AEROSPACE AND AGRICULTURAL
IMPLEMENT WORKERS OF AMERICA
(expiration date: January 1965)
Section 21. Annual Improvement Factor Increases. The increases provided by this
section recognize that a continuing improvement in the standard of living of employees depends
upon technological progress, better tools, methods, processes and equipment and a cooperative
attitude on the part of all parties in such progress and further recognize that to produce
more with the same amount of human effort is a sound economic and social objective. Accord26
Prior to September 1964, the Amalgamated Lithographers of America (ALA).
49
ingly, effective as of the start of the first pay period beginning on or after December 1, 1962,
all employees who have reached the qualifying rate of their classification shall receive an
increase of 4 cents per hour; and effective as of the start of the first pay period beginning
on or after December 1, 1963 (a) all employees in hourly-paid classifications (other than
the skilled trades journeymen classifications set forth in appendix E) who have reached the
qualifying rate of their classification shall receive an increase of 5 cents per hour, (b) all
employees in incentive-paid classifications who have reached the qualifying rate of their
classification shall receive an increase of 4 cents per hour, and (c) all employees in the
skilled trades journeymen classifications set forth in appendix E shall receive an increase
of 6 cents per hour.
The increases provided in this section shall be added on their effective dates to the
qualifying and maximum rates of the hourly-paid classifications as set forth in appendix B,
but in the case of employees in incentive-paid classifications said increases shall not be
added to the base rates but shall be added to incentive earnings by multiplying the number
of hours worked by such employees times the total of such increases then in effect, unless
the company and the union reach an agreement for factoring such increases into the rate
structure of the incentive-paid classification.
From the agreement between
CONSOLIDATED EDISON COMPANY OF
NEW YORK, INC. AND UTILITY
WORKERS UNION OF AMERICA
(expiration date: November 1965)
Exhibit I
Wage Adjustments, Wage Progression and Other
Matters for the Current Contract Term
Part I
General Wage Increases
(a) Employees will be granted general wage increases as set forth in the following
table. The amount of an individual's general wage increase will be determined by the maximum
rate of his title as of the date of the increase, when that maximum rate is expressed in
terms of the rate levels existing as of December 1, 1962.
General Wage Increases
(Cents-per-hour)
Established maximum
rates expressed in
terms of rate levels
as of Dec. 1, 1962
$3. 54/hour and over---------------------------------$ 2 .895-$3. 53/hour-----------------------------------Under $2. 895/hour------------------------------------
Dec. 2,
1962
July 7,
1963
Jan. 5,
1964
July 5,
1964
Jan. 3,
1965
July 4,
1965
3-year
total
7 .5
5 .0
5 .0
7 .5
5 .0
2 .5
5 .0
5 .0
5 .0
5 .0
2 .5
2 .5
5 .0
5 .0
5 .0
5 .0
2 .5
2 .5
35.0
25.0
2 2.5
(b) These increases will be granted to all eligible employees who are on the active
weekly payroll on the date specified, except that;
(i)
The application of these general wage increases will not cause the rate of pay
of any employee to exceed the new established maximum rate of pay for his classification.
However, for the current contract an exception will be made in the case of a limited
duty employee or another employee whose rate of pay exceeds the established maximum
rate for the job classification in which he is working. In such a case, he will be granted,
as a minimum increase, an amount equal to the minimum general wage increase set
forth in the above table for each stated effective date.
50
(ii) An employee absent for sickness on the effective date of any of the above
general wage increases and whose total continuous absence lasts for 20 or more working
days will be granted the applicable general wage increase effective as of the date he
returns to his regular work.
(iii) An employee absent for sickness on the effective date of any of the above
general wage increases, whose total continuous absence lasts for less than 20 working
days, upon his return to work, will be granted the applicable general wage increase
retroactive to the effective date.
From the agreement between
ARMOUR AND COMPANY AND
UNITED PACKINGHOUSE, FOOD AND
ALLIED WORKERS
(expiration date: August 1967)
8.2 General Wage Increases
(a) Effective September 7, 1964, all wage rates in effect immediately prior to the
effective date of this agreement shall be increased 6 cents per hour.
(b) The wage rates in effect as of September 1, 1965, shall be increased effective
the first full pay period following September 1, 1965, by 6 cents per hour.
(c) The wage rates in effect as of September 1, 1966, shall be increased effective
the first full pay period following September 1, 1966, by 6 cents per hour.
Appendix C. Selected Cost-of-Living Clauses Reproduced in Full
From the agreement between
GENERAL MOTORS CORPORATION ANO
INTERNATIONAL UNION, UNITED AUTOMOBILE,
AEROSPACE AND AGRICULTURAL IMPLEMENT
WORKERS OF AMERICA
(expiration date: September 1967)
(I0l)(e)(2) The cost-of-living allowance provided for in paragraph (10l)(c) shall be added
to each employed hourly earned rate and will be adjusted up or down each 3 months in line
with cost-of-living allowance as provided for in paragraphs (10 l)(g) and (101)(h).
(f) The cost-of-living allowance will be determined in accordance with changes in
the official Consumer Price Index for Urban Wage Earners and Clerical Workers (Including
Single Workers), published by the Bureau of Labor Statistics, U.S. Department of Labor,
(1957—59 =100) and hereinafter referred to as the BLS Consumer Price Index.
(g) Effective with the pay period beginning December 7, 1964, and thereafter during
the period of this agreement, adjustments in the cost-of-living allowance shall be made
quarterly at the following times:
Effective date
of adjustment
Based upon
First pay period beginning on or
after December 1, 1964, and
at quarterly intervals thereafter
to June 1, 1967.
BLS Consumer Price Index as of
October 1964, and at quarterly
intervals thereafter to A p r i l
1967.
In no event will a decline in the BLS Consumer Price Index below 106. 5 provide
the basis for a reduction in the wage scale by job classification.
(h)
The amount of the cost-of-living allowance shall be 5 cents per hour effective
for the period October 1, 1964, through December 6, 1964. Effective December 7, 1964,
and for any 3-month period thereafter as provided in paragraphs (I01)(c) and (l0l)(g), the
cost-of-living allowance shall be in accordance with the following table:
Cost-of-living allowance,
in addition to wage scale
by job classification
(cents per hour)
BLS Consumer
Price Index
106.4 or less------------------------------------106.5-106.8 ---------------------------------------106.9-107.2 ........................................
107. 3-107. 6 ........................................................
107. 7 -1 0 8 .0 ....................................... —
108.1-108.4
108.5-108.8
108. 9-109. 2
109. 3-109.6
109.7-110.0
110.1- 110.4......................................
110.5- 110.8......................— ...............
110.9- 111.2......................................
111.3- 111.6......................................
111.7- 112.0...............................
112.1- 112.4......................................
112.5- 112.8......................................
112.9- 113.2......................................
113.3- 113.6......................................
113.7- 114.0......................................
114.1- 114.4......................................
None
1
2
3
4
10
11
12
13
14
15
16
17
18
19
20
and so forth with 1 cent adjustment for each 0.4 change in die index.
51
52
period
(i) The amount of the co s t-o f-liv in g allowance which shall be effective fo r the
September 1, 1964, through September 30, 1964, shall be 14 cents per hour.
(j) The amount of any c o s t-o f-liv in g allowance in effect at the time shall be in
cluded in computing overtim e prem ium , night-shift prem ium , vacation payments, holiday
payments, c a ll-in pay, bereavem ent pay, and paid absence allowance.
(k) In the event the Bureau of Labor Statistics does not issue the Consum er P rice
Index on or b efore the beginning of the pay period re fe rre d to in paragraph (101)(g), any
adjustments required w ill be made at the beginning o f the fir s t pay period after receip t o f
the index.
(l) No adjustments, retroactive or otherw ise, shall be made due to any revision
which may later be made in the published figures fo r the BLS Consumer P rice Index fo r
any base month.
(m) The parties to this agreement agree that the continuance of the c o s t-o f-liv in g
allowance is dependent upon the availability of the monthly BLS Consumer P rice Index in
its present form and calculated on the same basis as the index fo r July 1964, unless other
wise agreed upon by the parties. If the Bureau of Labor Statistics changes the form or the
basis of calculating the BLS Consumer P rice Index, the parties agree to request the Bureau
to make available, fo r the life of this agreement, a monthly Consumer P rice Index in its
present form and calculated on the same basis as the index fo r July 1964.
(n) E ffective O ctober 1, 1964, 9 cents shall be added to the base wage rates
(minimum, interm ediary, and maximum) for each daywork cla ssifica tion in effect on that
date, except that said 9 cents shall not be taken into account fo r incentive pay calculation
purposes. In the case of em ployes on an incentive basis of pay, the 9 cents shall be added
to the earned rate of such em ployes.
Simultaneously, 9 cents shall be deducted from the
c o s t-o f-liv in g allowance in effect on September 30, 1964, and thereafter the co s t-o f-liv in g
allowance shall be computed in accordance with paragraphs (I01)(g) and (l0 l)(h ) above.
From the agreement between
NATIONAL FREIGHT AGREEMENT;
INTERNATIONAL BROTHERHOOD OF
TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN
AND HELPERS OF AMERICA (Ind.)
(expiration date: March 1967)
A rticle 33.
C ost of Living
A ll em ployees covered by this agreement shall be covered by the provision s fo r a
co s t-o f-liv in g allowance, as set forth in this section.
The amount of the co s t-o f-liv in g allowance shall be determ ined and redeterm ined
as provided below on the basis of the "U .S . Consumer P rice Index fo r Urban Wage E arners,
etc. (1957—59 = 100)" and referred to herein as the index.
The fir s t c o s t-o f-liv in g allowance shall be effective the fir s t pay period, beginning
on or aiter February 1, 1966, based on the differen ce between the base index figure of
June 1965, and the index figure for D ecem ber 1965, and shall continue in effect until the
fir s t pay period beginning on or after M arch 31, 1967. The next adjustment shall be made
on M arch 31, 1967, based on the index fo r January 1967. Adjustments in the co s t-o f-liv in g
allowances shall be made on the basis of changes in the index as fo llo w s: The base index
figure shall be the figure fo r June 1965 (which is announced in July 1965).
A ll future in
cre a s e s shall be calculated on such base as fo llo w s: F o r every 0. 3-point increase in the
index there shall be a 1 cent per hour or 0.25 m ill per m ile adjustment, except that the
fourth, eighth, and twelfth intervals shall be based on a 0 .4 -p o in t index change.
F or
exam ple:
53
Index increase from
June 1965 base
First
0. 3 p o in t------------------ -----Second . 3 p o in t------------------ -----Third
. 3 p oin t------------------ -----Fourth
. 4 p o in t----------------- -----Fifth
. 3 p o in t------------------ -----Sixth
. 3 p o in t------------------ -----Seventh . 3 p o in t------------------ -----Eighth
. 4 p o in t------------------ ------
Cents per hour
1
2
3
4
5
6
7
8
Allowance
per mile
0. 25
.50
. 75
1.00
1.25
1. 50
1.75
2.00
mill
mill
mill
mill
mill
mill
mill
mill
and so forth, with 1 cent per hour or 0.25 mill per mile adjust
ment thereafter for each 0. 3 or (0. 4 point where applicable) change
in the index.
In the event that the Bureau of Labor Statistics shall not issu e the appropriate index
on or before the beginning of one of the pay periods referred to herein, any adjustm ent in
the allowance required by such index shall be effective at the beginning of the fir s t pay period
after receipt of such index.
No adjustm ents, retroactive or otherw ise, shall be m ade in
the amount of the c o s t-o f-liv in g allowance due to any revision which later may be m ade
in the published figu res for the index for any month on the b a sis of which the allowance
has been determ ined.
The c o s t-o f-liv in g
any cla ssification .
allowance
shall not becom e a fixed
part of the base rates for
A decline in the index shall not resu lt in a reduction of cla ssification base r a tes.
Continuance of the c o s t-o f-liv in g allowance shall be contingent upon the continued availability
of o fficial monthly Bureau of Labor Statistics P rice Index in its p resen t fo rm and calculated
on sam e b a sis as index fo r 1965 unless otherw ise agreed upon by the p a rties.
It is understood that the negotiating com m ittees of the parties hereto m ay d eter
m ine during the life of this agreem ent what application shall be m ade of such c o s t-o f-liv in g
in creases in referen ce to where the sam e w ill be applied on provisions of this agreem ent.
From the agreement between
PUBLIC SERVICE COORDINATED TRANSPORT AND
AMALGAMATED TRANSIT UNION 27
(expiration date: February 1966)
O.
E S C A L A T O R CLAUSE
A ll em ployees covered by this agreem ent shall be paid a c o st-o f-liv in g allowance
to be determ ined and redeterm ined on the b a sis of the new se r ie s Consum er P rice Index— U .S .
(1957—59 = 100) published by the Bureau of Labor Statistics of the U .S . Departm ent of Labor,
in the following m anner:
The percentage in crease, if any, in the Consum er P rice Index fro m Septem ber 15,
1964, to D ecem ber 15, 1964, w ill determ ine the percentage in crease to be added to the
rates of pay specified in the agreem ent as at M arch 1, 1965, except that the adjustment,
if any, shall be m ade to the n ea rest cent and the amount resulting for the top operator* s
rate shall be applied to the rates for a ll em ployees covered by this agreem ent. This c o s t o f-liv in g adjustm ent shall be made effective on the fir s t Saturday on or after M arch 1, 1965,
and shall be paid fo r the next 3 m onths. Quarter-annual adjustm ents shall be made in this
manner thereafter. Thus, the next c o s t-o f-liv in g adjustment w ill be determ ined to the n earest
cent by the percentage in crease, if any, in the C onsum er P rice Index fro m Septem ber 15, 1964,
to M arch 15, 1965, and w ill becom e effective on the fir s t Saturday on or after June 1, 1965,
27
Prior to July 1964, Amalgamated Association of Street, Electric Railway and Motor Coach Employes of America.
54
fo r the next 3 m onths. C o s t-o f-liv in g adjustm ents shall not be added to the basic wage rates
of any cla ssification but only to each em ployee’ s earnings.
C o st-o f-liv in g adjustm ents in
cents per hour shall be used in the computation of straigh t-tim e and overtim e earnings in
the sam e m anner as the b a sic hourly rates are used in such computation.
From the agreement between
INDEPENDENT PATTERN MANUFACTURERS* ASSOCIATION, INC.;
MICHIGAN PATTERN MANUFACTURERS* ASSOCIATION AND
PATTERN MAKERS* LEAGUE OF NORTH AMERICA
(expiration date: September 1967)
A r tic le VII.
C ost of Living
Section 1.
E ffective October 1, 1964, and thereafter during the period of this
agreem ent, each em ployee covered by this agreem ent sh all receive a c o s t-o f-liv in g allowance,
as set forth in the following paragraph s:
(a)
The c o s t-o f-liv in g allowance w ill be determ ined in accordance with changes in
the official C onsum er P rice Index published by the Bureau of Labor S tatistics, U .S .
D epartm ent of Labor (1957—59=100) and hereinafter referred to as the index.
(b)
The amount of the c o s t-o f-liv in g allowance shall be determ ined and redeterm ined
quarterly-annually on the b a sis of the index as fo llo w s: and in accordance with the
following table, starting with the July 1964 index, the report of which is made available
on or about August 27, 1964.
E ffective Date of A llow an ce. Com m encing with the fir s t Monday in D ecem ber 1964
based upon the October 1964 index, report of which is m ade available on or about N ovem
ber 27, 1964, and at quarterly intervals thereafter, to the fir s t Monday in October 1967.
This table is a sample used to diow the method of cal
culating the cost-of-living allowance, and shall be corrected to
the figure of July 1964 index, equaling 0.
BLS Consumer Price Index
Cost-of-living allowance
108.6...........................................
108.7-109.0 ......... - ................................
109.1— 109.4 - - - - - - - - - - - - - - - - - - - - - - - - 109. 5—109.8 ----109.9—110.2 -------------------110.3—110.6 - - - - - - - - - - - - - - - - - - - - - - - - 110.7— 111.0 —— ---111.1-111.4......................... - ................
0
l cent
2cents
3 cents
4 cents
5cents
g cents
7 cents
and so forth, with 1 cent adjustment for each 0.4-point change in
the index. A decline in the index below the 108.6 figure shall not
result in a reduction greater than the increases made in the costof-living allowance.
(c)
The amount of any c o s t-o f-liv in g allowance in effect at the tim e shall be in
cluded in computing overtim e prem ium , n igh t-sh ift prem iu m , vacation pay allowance,
hiring and report pay, and holiday pay allowance.
(d)
In the event the Bureau of Labor Statistics does not issue the C onsum er P rice
Index on or before the beginning of the pay period referred to in paragraph (b), any
adjustm ent required w ill be m ade at the beginning of the fir s t pay period after receipt
of the index.
55
(e)
which m ay
No adjustm ent, retroactive or otherw ise, shall be m ade due to any revision
later be m ade in the published figures for the index fo r any base month.
(f)
Continuance of the c o s t-o f-liv in g allowance shall be contingent upon the ava ila
bility of the index in its presen t fo rm and calculated on the sam e b a sis as the index fo r
July 1964, unless otherw ise agreed upon by the p a rties. If the Bureau of Labor Statistics
changes the fo rm or the basis of calculating the official Consum er P rice Index, the
parties agree to request the Bureau to make available, for the duration of this agreem ent,
a monthly C onsum er P rice Index in its present form and calculated on the sam e b a sis
as the index fo r July 1964.
From the agreement between
HILLMAN'S INC. AND BUILDING SERVICE
EMPLOYEES' INTERNATIONAL UNION
(expiration date: October 1965)
I.
A ll em ployees covered by this agreem ent shall be covered by the provisions for
a c o s t -o f-liv in g allowance as se t forth in this subsection. The c o st-o f-liv in g allowance shall
be added to each such em ployee1s straigh t-tim e hourly earnings and w ill be adjusted up or
down each 3 months as m o re fully described below :
1.
The amount of the c o s t-o f-liv in g allowance shall be determ ined and redeterm ined
in accordance with changes in the official Chicago C on su m er's P rice Index, published
by the Bureau of Labor S tatistics, U. S. D epartm ent of Labor (1957—59 = 100) and referred
to herein as the index.
2.
Com m encing with the fir s t pay period beginning on or after January 1, 1963,
and thereafter during the period of this agreem ent, any adjustm ents in the c o s t-o f-liv in g
allowance required under the term s of this section shall be made quarterly at the fo l
lowing t im e s :
Effective date of adjustment—
first pay period beginning
on or after:
January 1, 1963 ■
April 1, 1963 — July 1, 1963 —
October 1, 1963
January 1, 1964April 1, 1964 —
July 1, 1964----October 1, 1964January 1, 1965April 1, 1965 —
July 1, 1965----October 1, 1965-
Based upon
index of:
November
February
May
August
November
February
May
August
November
February
May
August
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
1962
1963
1963
1963
1963
1964
1964
1964
1964
1965
1965
1965
3.
The amount of the c o s t -o f-liv in g allowance which shall be effective for any
3-m onth period as provided in paragraph 2 above, shall be based on the index for
August 15, 1957, with an adjustm ent upward or downward in denominations of 1 cent
fo r each 0. 59-poin t differen ce between the new quarterly index and the base index of
August 15, 1957. (The figure fo r August 15, 1957, for the index 1957—59 = 100, is 9 8 . 4 . )
56
It is understood that in computing the change, if any, in the c o s t-o f-liv in g allowance,
a change upward or downward in the index amounting to o n e -h a lf cent or m o re shall
require an adjustment upward or downward to the next full cent.
In such case, the
difference between the o n e-h a lf cent or m ore and the full cent shall be debited or credited
as the case m ay be toward the next adjustment. Where the change exceeds zero or any
denominations of 1 cent by le s s than o n e -h a lf cent, the fraction shall not affect the
adjustment, if any, but shall be debited or credited as the case m ay be toward the next
adjustm ent. Any previous c o st-o f-liv in g adjustm ent shall be debited or credited as the
case m ay be in determ ining the net adjustment, if any, required by the new quarterly
index.
In no case, however, shall a downward m ovem ent of the index resu lt in a
d ecre ase in rates beyond the amount of the c o s t-o f-liv in g allowance included in said
rates in this contract.
The c o s t-o f-liv in g allowance of up to 5 cents per hour received by the em ployees
under the agreem ent existing between the company and the union fro m October 16, 1955,
to October 15, 1957, has been incorporated into the rates of said em ployees and shall
not be d ecreased as a resu lt of any downward m ovem ent of the index below that of the
base index of August 15, 1957.
4.
In the event the Bureau of Labor Statistics shall not issu e the appropriate index
on or before the beginning of one of the pay periods referred to in paragraph 2 above,
any adjustm ents required by such index shall be made effective at the beginning of the
fir s t pay period after receipt of such index.
5.
No adjustm ents, retroactive or otherw ise, shall be m ade due to any revision
which later m ay be made in the published figures for the index for any month on the
b a sis of which the allowance has been determ ined.
6.
Any quarterly adjustm ents, upward or downward, in the c o s t-o f-liv in g allowance
shall be added to or deducted fro m the m inim um rates for any cla ssification , and shall
be computed in the sam e manner as provided in paragraph 3 hereof. In no ca se, how
ever, shall a downward m ovem ent of the index resu lt in a d ecre ase in m inim um rates
below those set forth in this agreem ent.
Any previous c o s t-o f-liv in g adjustm ent shall
be debited or credited, as the case may be, in determ ining the net adjustm ent, if any,
required by the new quarterly index.
7.
The parties to this agreem ent agree that the continuance of the c o s t-o f-liv in g
allowance is dependent upon the availability of the o fficial monthly BLS Chicago Con
sum er P rice Index in its presen t form and calculated on the sam e b a sis as the index,
1957—59 = 100, unless otherw ise agreed upon by the p a rties.
From the agreement between
RETAIL FOOD INDUSTRY, LOS ANGELES, CALIF., AND
BUILDING SERVICE EMPLOYEES' INTERNATIONAL UNION
(expiration date: May 1969)
Beginning with the fir s t Monday of June 1965, 1966, 1967, and 1968, the straigh ttim e hourly rate of pay for all em ployees in effect on the above dates shall be adjusted for
changes in the cost of living based on changes in the C onsum er P rice Index for Los A n geles
(all item s— 1957—59 = 100) available on such dates as com pared with such index for the previous
y ear on the sam e date. If such index shows an in crease of 3. 5 points or m o re, an adjust
m ent of o n e -h a lf cent fo r each 0. 5-poin t change in e x cess of the 3. 5 points aforementioned
shall be m ade.
It is intended that each y ear a new base index (for com parison) shall be
established, and the c o s t-o f-liv in g adjustm ent to be effective at the end of that y ear shall
be based on in creases over such base in each y ea r.
57
From the agreement between
DANA CORPORATION AND
INTERNATIONAL UNION, ALLIED
INDUSTRIAL WORKERS OF AMERICA
(expiration date: October 1967)
Section 4.
C o s t-o f-L iv in g Allow ance.
The company and the union agree that e m
ployees shall be covered by the provision s of a c o s t-o f-liv in g allowance as fo llo w s:
(a)
The amount of the c o s t-o f-liv in g allowance shall be determ ined and redeterm ined
as provided below on the b a sis of the Consum er P rice Index for Urban Wage E arn ers
and C le rica l W orkers (Including single w orkers)— A ll Item s, published by the Bureau of
Labor S ta tistics, U .S. D epartm ent of Labor (1957—59*100) herein referred to as the index.
(b)
The c o s t-o f-liv in g allowance made effective at the signing of this agreem en t is
32 cents per hour based upon the index as of July 15, 1964, at a point between 108. 1
and 108. 5. During the life of this agreem ent, adjustm ents in the c o st-o f-liv in g allow
ance shall be made quarter-annually on the b a sis of changes in the index as fo llo w s:
Effective date of adjustment—
first pay period beginning
on or after:
December 1, 1964March 1, 1965------June 1, 1965---------September 1, 1965 •
December 1, 1965March 1, 1966------June 1, 1966---------September 1, 1966 «
December 1, 1966March 1, 1967------June 1, 1967............
September 1, 1967 •
Based upon
index as of:
October
January
April
July
October
January
April
July
October
January
April
July
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
15,
1964
1965
1965
1965
1965
1966
1966
1966
1966
1967
1967
1967
(c)
A fter the date of signing of this agreem ent, the amount of the c o s t-o f-liv in g
allowance which shall be effective for any such quarterly period shall be determ ined in
accordance with the following table.
BLS Consumer
Price Index
Cost-of-living allowance
in addition to wage scale
(cents per hour)
1 0 4 .6 - 105.0 ..........................................
1 0 5 .1 - 105. 5 ..........................................
1 0 5 .6 - 106.0 -----1 0 6 .1 - 106. 5 ..........................................
1 0 6 .6 - 1 0 7 . 0 ...........................................
1 0 7 .1 - 1 0 7 . 5 ..........................................
1 0 7 .6 - 1 0 8 . 0 ..........................................
1 0 8 .1 - 108. 5 ..........................................
1 0 8 .6 - 109.0 ..........................................
1 0 9 .1 - 109. 5 ...........................................
1 0 9 .6 - 1 1 0 . 0 ..........................................
1 1 0 .1 - 1 1 0 . 5 ..............................................
25
26
27
28
29
30
31
32
33
34
35
36
110. 6-
1 1 1 .0 ........................................................
37
1 1 1 .1 -
1 1 1 . 5 ...........................................
38
111. 6- 1 1 2 .0 .............................................................
39
1 1 2 .1 1 1 2 .6 1 1 3 .1 1 1 3 .6 1 1 4 .1 1 1 4 .6 -
40
41
42
43
44
45
1 1 2 . 5 ..........................................
1 1 3 . 0 ..........................................
1 1 3 . 5 ..........................................
1 1 4 . 0 ..........................................
1 1 4 . 5 ..........................................
1 1 5 . 0 ..........................................
and so forth, with 1 cent adjustment for each 0 . 5-point change
in index.
58
(d) In no event w ill a decline
reduction in the wage schedules.
in the index below 98. 1 provide
the b a sis fo r a
(e)
The c o s t-o f-liv in g allowance shall not be added to the base or day rates for any
cla ssifica tio n but shall be computed on the b a sis of the hours worked tim es the amount
allowable by the index and shall be taken into account in computing overtim e, holiday
pay, c a ll-in pay, and vacation pay.
(f)
In the event the Bureau of Labor Statistics does not issu e the index on or before
the beginning of the pay period referred to above, any adjustm ents required w ill be made
at the beginning of the fir s t pay period after receipt of the index and no adjustm ents
retroactive or otherw ise shall be m ade due to any revision which m ay later be m ade in
the published figu res for the index for any month in which an adjustment m ay take p lace.
(g)
U nless otherw ise agreed upon by the pa rties, a continuance of this c o s t -o f living allowance sh all be contingent upon the continued availability of the o fficial monthly
index in the fo rm agreed to at the tim e of this signing and calculated on the sam e basis
as the index presen tly in effect.
From the agreement between
KELLOGG COMPANY AND
AMERICAN FEDERATION OF
GRAIN MILLERS
(expiration date: April 1966)
Section 601.
C o s t-o f-L iv in g P ro v isio n .
The contract of August 1, 1941, contained
a form u la fo r adjustment of wages according to changes in the C onsum er P rice Index,
and subsequent contracts have contained such provision s with am endm ents. The contract
effective A p ril 15, 1964, is amended to include the following p ro v isio n s:
(a) During the term of this contract a c o s t-o f-liv in g wage adjustm ent plan w ill be
in effect which w ill provide an adjustm ent of wages either upward or downward, over
and above the standard wage rate schedule.
These adjustm ents w ill at all tim es be
based on the o fficial U .S . Departm ent of Labor Consum er P rice Index (a ll item s) fo r
the D etroit area, as specified in section 601 (c).
(b)
The amount of c o s t-o f-liv in g allowance which shall be in effect fo r each quar
terly period w ill be determ ined according to the following table, which is based on an
in crease of 1 cent per hour fo r each 0 .4 0 -p o in t in crease in the index beginning with the
review of the May 15, 1964, index.
Cost-of-living allowance
( in addition to standard
wage scale in cents)
0.................. — ...............................................
1................... - ................................- ................
2........................................................... ............
3..................... - ---------------- ----------------------4 -............................... ......................................
5
.....................................................
6
.
7
......................................................
8
...................................................... - ....................
9
......................................................
10
................................. ....................
11
......................................... - ..........
12
....................- ...............................
13
.....................................................
14...................................................... - .............
15...................................................... - .............
16— ....................... - ........................................
17
.............- ............. - ......................
18
.....................................................
19
.....................................................
20
......................................................
BLS Consumer Price Index
9 7 . 6 - 97.9
9 8 .0 - 98.3
9 8 .4 - 98.7
9 8 .8 - 99.1
9 9 .2 - 99.5
9 9 .6 - 99.9
100.0-100.3
100. 4-100. 7
100 . 8 - 101.1
101.2-101.5
101.6-101.9
102.0-102.3
102. 4-102. 7
102.8-103.1
103.2-103.5
103.6-103.9
104.0-104.3
104.4-104.7
104.8-105.1
105.2-105. 5
105.6-105.9
59
(c)
The BLS
February 15, May
making adjustm ents
w ill be used for the
Consum er P rice Index reflecting the final report of p rices as of
15, August 15, and Novem ber 15, w ill be used for the purpose of
under this fo rm u la. The revised new se r ie s index (base 1957—59=100)
purpose of making adjustm ents under this section.
A djustm ents upward or downward under this form u la w ill be m ade effective on the
fir s t Sunday following receipt by m a il at the com pany's office by a Friday of the Bureau
of Labor Statistics monthly bulletin covering the D etroit C onsum er P rice Index for the
appropriate review date.
(d)
The c o s t-o f-liv in g allowance shall be in addition to the standard hourly rates
for daywork cla ssifica tio n s, as shown in the rate schedule included in this contract, and
to the total earned rate fo r a ll incentive w orkers, on the incentive jobs which are d e sig
nated with a double a ste risk ** in appendix D.
(e)
The amount of any c o s t-o f-liv in g allowance in effect at any tim e shall be in
cluded in computing overtim e, Sunday, and holiday work prem ium pay, vacation pay
m ents, and call pay.
(f)
No adjustm ents in wage allowance, retroactive or otherw ise, shall be made due
to any revision which may later be m ade in the published figures for the index for any
base month used in this form u la.
(g)
Continuance of the c o s t-o f-liv in g allowance is dependent upon the availability of
the official index in its presen t fo rm , and calculated on the sam e b a sis, unless oth er
w ise agreed upon by the p a rties.
(h)
In no event w ill a decline in the index below
reduction in the c o s t-o f-liv in g allowance.
9 7 .6
provide the b a sis fo r a
From the agreement between
THE BOEING COMPANY AND
INTERNATIONAL ASSOCIATION OF
MACHINISTS AND AEROSPACE WORKERS
(expiration date: September 1965)
Section B .
C o s t-o f-L iv in g Allowance
1.
F o r each of the respective periods designated in subparagraphs 3. a, 3 .b , and
3 .c of this section B, em ployees covered by this agreem ent shall receive a cents per hour
c o s t-o f-liv in g allowance if, and to the extent such allowance becom es payable for the p a r
ticular period under, and in accordance with a ll of the te rm s, definitions, and lim itations
stated in this section B.
2.
D eterm ination of the c o s t-o f-liv in g allowance sh all be m ade in referen ce to the
Revised Consum er P rice Index— a ll ite m s, published by the Bureau of Labor S tatistics, U .S .
D epartm ent of Labor (1957—59=100) and referred to herein as the BLS index.
3.
The amount of the c o s t-o f-liv in g
mined as fo llo w s:
allowance
fo r such periods shall be d eter
a.
The amount of the c o s t-o f-liv in g allowance fo r, and lim ited to, the period from
and including Septem ber 16, 1963, to and including Septem ber 15, 1964 (hereinafter in
this section referred to as the 1963—64 period), shall be based on (l) the B LS index
for the calendar month preceding the calendar month in which the effective date (date
of execution) of this agreem ent occurs (such BLS index being h ereafter in this section
referred to as the base index) and (2) the B LS index fo r August 1963.
The extent, if
any, to which the latter BLS index exceeds the base index shall determ ine the amount,
60
if any, of the cents per hour c o s t-o f-liv in g allowance for the period to which this su b paragraph a. relates and such amount shall be in accordance with, and lim ited by the
table in paragraph 4 of this section and further lim ited to the extent that the amount
of such c o s t-o f-liv in g allowance fo r the period shall not exceed 3 cents per hour.
b.
The amount of the c o s t-o f-liv in g allowance for, and lim ited to, the period fro m
and including Septem ber 16, 1964, to and including Septem ber 15, 1965 (hereinafter in
this section referred to as the 1964—65 period), shall be based on (l) the base index
and (2) the BJLS index fo r August 1964.
The extent, if any, to which the latter B LS
index exceeds the base index shall determ ine the amount, if any, of the cents per hour
c o s t-o f-liv in g allowance fo r the 1964—65 period and such amount shall be in accordance
with, and lim ited by the table in paragraph 4 of this section B and further lim ited to the
extent that the amount of such c o s t-o f-liv in g allowance for the 1964—65 period shall not
exceed the cents per hour c o s t-o f-liv in g allowance, if any, for the 1963—64 period
plus 3 cents.
c.
The amount of the c o s t-o f-liv in g allowance fo r, and lim ited to, the period fro m
and including Septem ber 16, 1965, throughout the remaining effective period of this
agreem ent sh all be based on (1) the base index and (2) the B LS index fo r August 1965.
The extent, if any, to which the latter B LS index exceeds the base index shall determ ine
the amount, if any, of the cents per hour c o s t-o f-liv in g allowance fo r the period to
which this subparagraph c
relates and such amount shall be in accordance with and
lim ited by the table in paragraph 4 of this section and further lim ited to the extent that
the amount of such c o s t-o f-liv in g allowance fo r the period to which this subparagraph
c relates shall not exceed the cents per hour c o s t-o f-liv in g allowance, if any, for the
1964—65 period plus 3 cents.
4.
The c o s t-o f-liv in g allowance, if any, fo r the periods designated respectively in
3. a, 3 .b , and 3. c above, shall be computed in accordance with the following table, subject
to the other applicable lim itations of this section:
If the later BLS index designated
for the particular period exceeds
the base index by—
Cost-of-living
allowance
(in cents per hour)
0 .3 or less------------------- ------------ —-------------- —
None
0. 4 - 0 . 7 ...........................................................................
0 . 8 - 1 . 1 ..................................................................
1 . 2- 1 . 5
..........................................................................
1
2
3
1 . 6 - 1 . 9 .......................................................................
2 .0 —2. 3 ..........................................................................
4
5
2 . 4—2 . 7 ........................................................................................
6
2 . 8— 3 . 1 ..............................................................................................
7
3. 2—3 . 5 ..........................................................................
3 .6 — 3 . 9 .......................................................................
8
9
5.
The c o s t-o f-liv in g allowance shall not be added to the base rate fo r any labor
grade, but only to each em ployee’ s stra ig h t-tim e hourly earnings. The applicable c o s t -o f living allowance sh all be, however, included in computing overtim e payment, th ird -sh ift
bonus, vacation and holiday payment, sick leave payment, and report tim e payment.
6.
A decline in the BLS index below the lev el of the base index shall not affect or
cause a reduction in the base wage rates designated in section A of this a rticle.
7.
If the BLS index in its presen t fo rm and calculated on the
revised therefrom or discontinued, the parties shall attempt to determ ine an
index figure by agreem ent or if agreem ent is not reached, the parties shall
Bureau of Labor S tatistics to m ake available a BLS index in its p resen t form fo r
priate date or dates, and calculated on the sam e b a s is .
sam e b a sis shall be
appropriate
request the
the appro
Appendix D. Identification of Clauses
E m ployer and Union
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
G en eral M otors Corp _____________________________________________________
Autom obile (U A W ).
National Skirt and Sportsw ear A sso c ia tio n , I n c ______________________
G arm ent, Ladies (ILG W ),
F ed eral Departm ent S to re s, I n c ________________________________________
Clothing (A C W A ).
Construction Industry E m ployers A ssocia tio n of
B uffalo, N .Y _______________________________________________________________
Iron W o rk ers (BSOIW).
New Y ork State O v er-th e-R o a d M otor Freight
A g r e e m e n t_________________________________________ - ______________________
T e a m ste rs (TCW H) (In d .).
A sso c ia te d Food R etailers o f G reater Chicago and The Retail
Chain Food S to r e s ________. ______________________________________________
R etail C lerk s (R CIA).
A rvin Industries, Inc __________________________________. . . ____ ___________
E le c tr ic a l, Brotherhood (IB E W ).
B ecton, Dickinson and C o ______. . . ______________________________________
E le c tr ic a l, International (IUE).
The F lo rsh e im Shoe Co __________________________________________________
Shoe W o r k e r s, United (USW),
M attel, I n c _________________________________________________________________
Rubber (URW ).
A m erica n M etal C lim a x , Inc.-^United States M etals
Refining Co ______________________________________________ _______________
M in e, M ill (MMSW) (In d .).
Johnson B ronze Co —________________________________________________
Autom obile (UAW ).
Anchor Hocking G la ss C o r p ________________________________________
Flint G la ss (A F G W ).
A d m ira l Corp ________________________________________________________
E le c tr ic a l, Brotherhood (IB EW ).
Stackpole Carbon Co ________________________________________________
E le c tr ic a l, International (IUE).
The United Gas Im provem ent C o .—Philadelphia Gas W orks
D iv is io n ...____________________________ _______________________________
Gas W orks E m p lo yees' Union of Philadelphia (In d .).
The Stanley W orks—Stanley T ools D iv is io n .—_____ —_____________
M achinists (IAM ).
G en eral E lectric C o _________ _______________________________________
E le c tr ic a l, International (IUE).
19
20
21
22
M achinists (IA M ).
A e ro je t—G en eral C o r p .—Sacram ento, C a l i f —________ ___________
M achinists (IA M ).
Popular P ric e D r e ss C ontractors A sso c ia tio n ,
G arm ent, Ladies (ILGW ).
National A ssocia tio n o f B louse M a n u factu rers_____ _____________
G arm ent, Ladies (ILG W ).
Industrial A ssocia tio n of House D r e s s , Robe and U niform
M an ufacturers, I n c ________________________________________________
G arm en t, Ladies (ILG W ).
Chicago M eat P ack ers and W h o lesa lers
A s s o c ia tio n _________________________________________________________
Meat Cutters (M C B W ).
61
62
Clause
number
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Em ployer and Union
The P ro cte r and Gamble Co. —Ivorydale and St. Bernard,
Ohio P la n ts-------------------------------------------------------------------------------------Ivorydale and St. Bernard E m ployees' Representation
A ssocia tion (Ind.).
United Shoe M achinery C o r p .—B everly F a ctory_____________________
E lectrica l, United (UE) (In d.).
General Freight Agreem ent—M aine__________________________________
T eam sters (TCWH) (Ind.).
Carnation Co _____________________________________________________ . __
Team ster (TCWH) (Ind.).
Granite M anufacturers—V erm on t____________________________________
Granite Cutters (GCIA).
The Bunker Hill C o __________________________________________________
Northwest Metal W orkers (In d.).
San F ra n cisco Newspaper P u b lish ers' A ss o c ia tio n _________________
Newspaper Guild (ANG).
Franklin A ssociation of C hicago_____________________________________
Typographical (ITU).
M aster B u ilders' A ssociation o f W estern Pennsylvania,
I n c __________________________________________________________________
Engineers, Operating (KJOE).
Plumbing and Pipe Fitting Industry—San F ran cisco and three
other counties______________________________________________________
Plumbing (P P F ).
A m erican B osch A rm a C o r p ________________________________________
E lectrica l, International (IUE).
Campbell Soup C o ___________________________________________________
R etail, W holesale (RWDSU).
Lnger soil—Rand Co __________________________________________________
E lectrica l, International (IUE).
Clark Equipment C o _________________________________________________
Autom obile (UAW).
F ord M otor Co ____________________________________________________ __
Autom obile (UAW).
Thompson Ramo W ooldridge, In c.—Cleveland A re a _________________
A ircra ft W orkers A llia n ce, Inc. (Ind.).
H illm an's I n c ________________________________________________________
Building Service (BSE).
The Boeing Co ______________________________________________________
M achinists (IAM).
Swift & C o ___________________________________________________________
Packinghouse, National Brotherhood (NBPW) (Ind.).
Dana C o rp .—Salisbury D ivision __________________ ____________________
Industrial (AIW).
A erojet—G eneral C o rp .—Downey, C alif _______ -____________________
Steelw orkers (USA).
Schluderberg—Kurdle Co ____________________________________________
Meat Cutters (MCBW).
Food Em ployers Council, Inc. and two o th e r s _____________ _____ ___
Retail C lerks (RCIA).
SKF Industries, Inc _________________________________________________
Steelworker s ' (U SA).
Retail Drug Store O perators—Hollywood, Calif----- ----------------------- —
Retail C lerks (RCIA).
M itchell—Bentley C o r p .—Iona Manufacturing C o ------------------------------Furniture (UFW).
I/A Bakery Agreem ent—G reater New Y ork City A r e a ---------------------Bakery (BCW) (Ind.).
The National A cm e C o ______________________________________________
M echanics Educational Society (MESA).
Expiration
date
February 1964
M arch 1964
A p ril 1967
D ecem ber 1963
A pril 1965
D ecem ber 1965
September 1963
June 1964
May 1964
M arch 1966
September 1964
Novem ber 1964
July 1963
January 1965
September 1967
May 1967
October 1965
September 1965
August 1964
October 1967
November 1965
August 1967
M arch 1964
October 1965
June 1966
October 1964
January 1965
September 1967
Employer and Union
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
Retail A pparel M erchants, I n c _____________________________________
Clothing (ACW A).
National M aster Freight A greem ent________________________________
T eam sters (TCWH) (In d.).
O scar M ayer and Co _______________________________________________
Meat Cutters (MCBW).
Food E m ployers Council, Inc ____________________________________ _
R etail C lerks (RCIA).
The Dow C hem ical C o .—Midland, Mich_____________________________
M in e-D istrict 50 (UMW-50) (Ind.).
Graphic A rts E m ployers A ss o c ia tio n ______________________________
Lithographers (LPIU).
A llis —Chalm ers Manufacturing Co _________________________________
Independent E ngineers' and D raftsm en's
A ssocia tion (In d .).
P a cific Coast Shipbuilders__________________________________________
Carpenters (CJA).
Public Service Coordinated Tran sport______________________________
T ransit (ATU).
D eere and C o _______________________________________________________
A utom obile (UAW).
League of New Y ork Theaters, Inc ________________________________
A ctors Equity (AEA).
John M o rre ll and Co _______________________________________________
Packinghouse (UPWA).
C h rysler Corp ______________________________________________________
Autom obile (UAW).
M otor Wheel Corp __________________________________________________
Industrial (AIW).
Rock Products and Ready Mix E m ployers o f Southern C alifornia__
T eam sters (TCWH) (Ind.).
A llied Chem ical C o rp .—Solvay P r o c e s s Division___________________
Mine—D istrict 50 (UMW-50) (Ind.).
Northrup Corp. —Ventura Division___________________________________
RPA, Inc. (Ind.).
Sangamo E lectric C o _______________________________________________
Selco Union (In d.).
Owens—Corning F iberglas C o r p ____________________________________
Glass Bottle (GBBA).
Sperry Rand C o rp .—Sperry G yroscope Co _________________________
E lectrica l, International (IUE).
B eech A ircra ft Corp _______________________________________________
Machinists (IAM).
L ea r, Inc ___________________________________________________________
Autom obile (UAW).
Central Motor Freight A ssocia tion , I n c ___________________________
Team sters (TCWH) (Ind.).
A ssocia ted Spring C o r p .—B ristol D iv isio n s________________________
Autom obile (UAW).
M clnerney Spring and W ire Co ____________________________________
Autom obile (UAW).
Eaton Manufacturing C o .—A xle D ivision____________________________
M echanics Educational Society (MESA).
The Martin—Marietta C o rp .—Martin Co. D ivision __________________
Automobile (UAW).
Lockheed A ircra ft C o rp .—Lockheed M issiles and Space Co _____
M achinists (IAM).
General Dynamics C orp.—G eneral D ynam ics/Fort Worth D iv is io n M achinists (IAM).
Food Industry, Inc _________________________________________________
Meat Cutters (MCBW).
64
Clause
number
83
84
85
86
87
88
89
90
Expiration
Em ployer and Union
W holesale G r o ce r s , Chainstore and R etailer owned
Warehouse O perators of M inneapolis______________________________
T eam sters (TCWH) (In d.).
Wyandotte Chem icals Corp.—Industrial Chem icals Division_________
Oil, C hem ical and A tom ic W orkers (OCAW).
Ling—Ternco—Vought, In c.—Chance Vought Corp. and T em co
E lectron ics and M issiles Co. D ivision s.___________________________
Automobile (UAW).
The Budd C o _________________________________________________________
Autom obile (UAW).
Textron, In c.—Cam bell, Wyant and Cannon Foundry Co.
D iv is io n ____________________________________________________________
Autom obile (UAW).
T r ic o Products C o r p ________________________________________________
T rico W orkers Union (Ind.).
Scovill Manufacturing Co. —W aterbury D ivisions____________________
Autom obile (UAW).
Central States Area—L ocal Cartage A greem en t_____________________
Team sters (TCWH) (Ind.).
date
May 1964
A p ril 1965
O ctober 1965
O ctober 1964
M arch 1965
August 1964
August 1963
January 1964
NOTE: A ll unions are affiliated with the A FL -C IO except those follow ed by (Ind.).
The new Bulletin 1425 series on major collective bargaining agreements
is available from the Superintendent of Documents, U.S. Government Printing
Office, Washington, D. C. , 20402, or from the BLS Regional Offices as shown
on the inside back cover.
BLS Bulletin 1425-1: Grievance Procedures (price 45 cents).
BLS Bulletin 1425-2: Severance Pay and Layoff Benefit Plans
(price 60 cents).
BLS Bulletin 1425-3: Supplemental Unemployment Benefit Plans
and Wage-Employment Guarantees (price 70 cents).
For a list of other industrial relations studies, write for A Directory of BLS Studies in Industrial Relations, 1954—65.
☆ U.S. GOVERNMENT PRINTING O FFICE : 1966 O - 206-184
BUREAU OF LABOR STATISTICS REGIONAL OFFICES
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