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TEXT Table Table Table Table Table Table Table Table Table Table Table 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Rate changes: Average (mean) changes(1)in wages under current and replaced state and local government collective Rate changes: Average (mean) changes(1) in wages and compensation in state and local Rate changes: Percent distribution of workers under state and local government collective Rate changes: Percent distribution of workers under state and local government collective Rate changes: Selected characteristics of settlements covering 1,000 workers or more, by duration of Rate changes: Average (mean) changes(1) in wages and compensation in state and local Rate changes: Average (mean) changes(1) in wages and compensation in state and local government collective Rate changes: Average (mean) changes(1) in wages and compensation in state and local Cost changes: Average (mean) changes(1) in the cost of compensation and Rate changes: Average changes in wages in state and local government collective bargaining Rate changes: Average changes in wages in state and local government Technical information: Joan Borum (202) 606-6280 Media contact: (202) 606-5902 USDL: 95-91 For release: 10:00 A.M. EST Friday, March 17, 1995 MAJOR COLLECTIVE BARGAINING SETTLEMENTS IN STATE AND LOCAL GOVERNMENT, SECOND HALF AND FULL YEAR 1994 Major collective bargaining settlements reached in state and local government during the second half of 1994 provided annual changes in wage rates that were higher, on average, than were specified in the agreements they replaced, the U.S. Department of Labor's Bureau of Labor Statistics reported today. This relationship also occurred in the first half of the year. Earlier, however, beginning with the second half of 1990 through the second half of 1993, settlements had specified lower wage rate changes than those called for in the agreements being replaced. The Bureau's series covers bargaining units with 1,000 workers or more and was initiated in 1984. Wage rate changes under settlements During the second half of 1994, there were 172 settlements, covering 648,000 state and local government workers. They specified wage rate changes averaging an increase of 2.5 percent in the first year of the agreements and 3.0 percent annually over the life of the contracts. (See table 1.) Corresponding changes in agreements they replaced (which were negotiated primarily in 1992 or 1993) were 2.0 and 2.8 percent. (Lump-sum payments and cost-of-living adjustments are not included in specified wage rate changes.) Workers under second half settlements accounted for 55 percent of the 1.2 million workers under the 332 settlements reached during all of 1994. Settlements during the entire year, on average, specified a higher wage rate change over their term than the contracts being replaced--an annual increase of 3.0 percent compared with 2.8 percent. Over their terms, agreements reached during 1994 specified wage rate increases for 89 percent of all state and local government workers and no wage rate change for almost all the rest. (See table 3.) Seventy percent (828,000) of the state and local government workers under settlements during 1994 were employed by local governments. Their wage rate changes averaged an increase of 3.0 percent annually over the contract term compared with 3.2 percent for state government workers. The smaller change in local than in state settlements stems almost entirely from smaller increases and a greater incidence of wage freezes. Settlements in education (primarily for teachers, but also for administrators and service employees), covering 47 percent (558,000) of the workers under contracts reached in 1994, provided wage rate changes averaging an increase of 3.3 percent a year over the contract term. Settlements in general administration, covering about 32 percent (383,000) of the workers under settlements during 1994, provided wage rate changes averaging an increase of 2.6 percent annually over the contract term. State and local government settlements negotiated during 1994 had a longer average duration than the agreements they replaced, 22.4 months compared with 20.5 months. (See table 5.) About one-half of the workers under 1994 settlements had contracts for less than 2 years, contrasted with three-tenths covered by contracts running 3 years or more. Compensation cost changes under settlements The BLS data on negotiated changes in employers' costs for employee compensation relate to settlements covering 5,000 workers or more. Compensation cost changes include specified (guaranteed) cash and benefit lump-sum payments and reflect both the size and timing of compensation rate changes. (Lump-sum payments and the timing are not taken into account in the rate measure.) See the Explanatory Note for a more detailed description of the cost series. During 1994, settlements covering 5,000 workers or more called for compensation cost changes averaging an increase of 2.2 percent a year over the life of the contract. (See table 9.) These settlements applied to 52 percent (619,000) of the workers under all major settlements in state and local government during the period. Settlements in local government (for 352,000 workers) averaged an increase of 2.5 percent, compared with 1.9 percent under settlements in state government (for 267,000 workers). Changes in employer costs for cash payments to workers (including wages and lump-sum payments) and changes in wage costs alone both averaged an increase of 2.1 percent a year over the life of the contract. (About 136,000 workers were under settlements that specified lump-sum payments.) Changes in benefit costs averaged an increase of 2.7 percent a year over the contract term. Wage rate changes under all major agreements In addition to data just presented on changes in rates and costs under settlements, the Bureau compiled information on wage rate changes for state and local government workers under all major agreements in force during 1994. (See tables 10 and 11.) During 1994, wage rate changes for the 2.8 million state and local government workers under all major agreements averaged an increase of 3.3 percent--1.4 percent from settlements reached in 1994 and 1.9 percent from agreements reached earlier. Changes from cost-of-living adjustments (COLAs) were negligible. About 2.1 million workers were under major contracts that increased wage rates in 1994. The increases averaged 4.4 percent. Another 660,000 workers were under contracts that provided no wage change. About 13,200 workers had wage decreases. Wage rate increases in 1994 stemmed from one or more of the following: 1) Settlements reached in the year which provided increases in 1994 averaging 4.3 percent for 919,500 workers; 2) contracts negotiated earlier that specified increases in 1994 averaging 4.4 percent for 1.2 million workers; and 3) cost-of-living adjustment (COLA) provisions, which yielded average increases of 0.8 percent for 22,700 workers. (About 1,200 additional workers had COLA reviews which did not produce a wage change, largely because movements in the BLS Consumer Price Index were insufficient to trigger one.) First half 1995 bargaining activity Approximately 1.3 million state and local government workers are under 244 major agreements scheduled to expire or reopen between January and June 1995. In addition, about 426,000 workers are under 153 major contracts that expired or reopened, but had not been renegotiated or ratified, prior to December 31, 1994. Thus, in total, about 1.7 million state and local government workers may be involved in bargaining during the first half of 1995. About one-half (850,000) are employed by local governments; and almost one-third (550,000) of all workers are in state and local education. In the first half of 1995, about 1.2 million workers are slated for wage increases averaging 4.3 percent under provisions of agreements reached earlier. No workers are scheduled to have their wage rates reduced. About 143,000 workers are scheduled for COLA reviews during the period. EXPLANATORY NOTE ABOUT THE DATA This release covers major collective bargaining units--those with 1,000 workers or more--in state and local government. The collective bargaining units are limited to those in which: (1) A labor organization is recognized as the bargaining agent for a group of workers and settlements are embodied in signed, mutually binding collective bargaining agreements; and (2) at least wages are determined by collective bargaining. BLS is aware of 676 such units covering 2.8 million workers. Comparisons of major collective bargaining settlements for state and local governments with those for private industry should note differences in occupation mix, bargaining practices, and settlement characteristics. Professional and other white-collar employees, for example, make up a much larger proportion of the workers covered by government than by private industry settlements. Lump-sum payments and cost-of-living adjustment (COLA) clauses, on the other hand, are less common in government than in private industry settlements. Also, state and local government bargaining frequently excludes items, such as pension benefits and holidays, that are prescribed by law; these items are typical bargaining issues in private industry. Wage and compensation changes under settlements The series on major collective bargaining settlements estimates how much wage and compensation rates and compensation costs will change from existing levels as a result of new collective bargaining agreements reached during specified reference periods. Compensation rates include: Straight-time pay for time worked; premium pay for overtime, weekend, holiday, and shift work; paid leave; life, health, and sickness and accident insurance; pension and other retirement plans; severance pay; and legally required benefits. Compensation rates exclude lump-sum payments because they are not part of the ongoing rate structure. Compensation costs include: The items covered by compensation rates plus specified cash and benefit lump-sum payments, which are excluded from rate data. Wage and compensation rate changes: The rate change for a settlement is the percent difference between the average rate just prior to the start of a new agreement and the average rate that would exist at the end of the first 365 days of the new agreement (first-year measure) or at its expiration date (over-the-life measure). (The over-the-life measure is expressed as an annual average change). The average rate change for all settlements is calculated by first multiplying the rate change for each settlement by the number of workers under the settlement. Next, the resulting products are summed, and the sum is divided by the total number of workers under all settlements. The result is the average change for all settlements. Compensation cost changes: The compensation cost change for a settlement is the percent difference between the average cost of compensation per work hour (including the hourly cost of lump-sum payments made during the term of the expiring agreement) just prior to the start of a new agreement and the average cost of compensation per hour under the settlement. The average cost of compensation under the settlement is calculated in two steps, as follows: 1) Each hourly compensation rate (excluding lump-sum payments) is multiplied by the number of hours it is to be paid during the agreement, the products are summed and the total is divided by the number of work hours over the agreement term. The result is the cost per work hour of compensation excluding specified lump-sum payments. 2) The cost per work hour of specified lump-sum payments is computed by dividing the total amount of any cash and benefit lump sums by the total number of work hours over the agreement term. The sum of the results of 1) and 2) is the estimated average cost of compensation per work hour over the term of the agreement. The percent difference between this amount and average cost at the end of the expiring agreement is the average cost change under the settlement. The average cost change under all settlements is calculated by multiplying the percent change in cost under each settlement by the number of workers under the settlement. The results are summed, and the sum is divided by the total number of workers under all settlements. The following example illustrates one of the major differences between the compensation rate series and the compensation cost series. Two agreements (A and B) expire. At expiration, compensation under each agreement is $10 an hour. The agreements are replaced by new settlements that run for one year. The settlement replacing agreement A immediately increases compensation from $10 an hour to $10.50 an hour. The settlement replacing agreement B leaves compensation unchanged for the first six months and then increases compensation from $10 an hour to $10.50 an hour. The rate series measures the size of each settlement by calculating the difference between compensation at the expiration of the old agreement and compensation at the expiration of the new agreement and computing the percent change. Thus, it measures each settlement as providing a 5 percent ($.50/$10) compensation rate increase over the one- year term. The cost series measures the size of each settlement by comparing employer costs for compensation under the settlement with what they were under the expiring agreement just before it was renegotiated as follows: When each agreement expired, an employee who worked 2,000 hours over the year would cost the employer $20,000 (2,000 hours at $10). Under the settlement replacing agreement A (with the immediate increase), the employer would pay for 2,000 hours at $10.50 an hour, or $21,000 for the year, a 5 percent increase over the $20,000. Under the settlement replacing agreement B (with the delayed increase), the employer would pay for 1,000 hours at $10 an hour and for 1,000 hours at $10.50 an hour, or $20,500 for the year, a 2.5 percent increase over the $20,000. Thus, the cost series reflects the influence of timing of changes during the agreement term which is not reflected by the rate series. For a more detailed description of the compensation cost series and how it compares with the compensation rate series, see Alvin Bauman, "A New Measure of Compensation Cost Changes," Monthly Labor Review, August 1990, pp. 11-18. Data on changes under settlements exclude potential increases or decreases that may result from COLA clauses that are based on future changes in the CPI unknown at the time of settlement. The data do, however, include "guaranteed" COLA payments (those specified when the agreement was reached and scheduled to be implemented later) because they are not tied to subsequent price movements. Similarly, data on cost changes exclude contingent lump-sum payments (such as those tied to future profit levels or productivity increases) but include lump-sum payments guaranteed by the settlement. Estimates of changes are based on the assumption that conditions existing at the time of settlement (e.g., composition of the labor force or methods of funding pensions) will remain constant over the life of the contract. Wage rate changes under all contracts The series on all major collective bargaining contracts estimates average wage rate changes during the reference period under settlements reached during the calendar year as well as under major agreements reached earlier and remaining in force during the period. The average change under all contracts in force during a period is computed by multiplying the percent change under each contract by the number of workers covered, adding the products, and dividing the sum by the total number of workers under all contracts. The average rate change reflects net rate increases, decreases, and zero changes during the reference period. Rate increases and decreases stem from settlements in the calendar year that call for increases or decreases during the period, from agreements reached earlier with increases or decreases deferred to the period, and from COLA clauses. (Although some agreements do not incorporate wage increases and decreases from COLA clauses into base wage rates, such changes are included in the Bureau's wage rate change measure for all contracts.) Wage changes under COLA clauses are based on changes in the Consumer Price Index for a review period designated in the agreement. Data for 1994 are preliminary and may be revised if additional information is obtained. Final data will be available in the Spring of 1995. Additional historical information is available from the Office of Compensation and Working Conditions, Bureau of Labor Statistics, Washington, D.C. 20212. Data on second quarter private industry agreements, which are collected separately, were released on January 25, 1995. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-606-7828, TDD phone: 202-606-5897, TDD Message Referral Phone Number: 1-800-326- 2577. __________________________________ Major state and local government collective bargaining settlement data for the first half of 1995 will be released in August 1995. Table 1. Rate changes: Average (mean) changes(1)in wages under current and replaced state and local government collective bargaining settlements covering 1,000 workers or more, six-and 12-month periods, 1990-1994 (in percent) 1990 1991 1992 1993 1994 Measure First half Second half First half Second half First half Second half First half Second half First half(2) Second half(3) First year change(4) Current settlements............... Replaced settlements.............. 5.0 4.6 4.8 5.3 2.6 4.9 1.8 5.0 1.4 4.9 0.9 4.4 1.1 3.4 1.2 2.4 2.9 2.5 2.5 2.0 Annual changes over the contract term(5) Current settlements............... Replaced settlements.............. 5.0 4.4 4.9 5.5 2.6 4.6 2.8 5.2 2.5 4.7 1.7 3.9 2.2 3.5 2.0 2.5 3.1 2.8 3.0 2.8 12 months ended First year change(4) Current settlements............... Replaced settlements.............. 5.1 5.1 4.9 5.0 3.8 5.1 2.3 4.9 1.6 4.9 1.1 4.6 1.0 3.8 1.1 2.9 1.9 2.4 2.7 2.0 Annual changes over the contract term(5) Current settlements............... Replaced settlements.............. 5.2 5.0 5.0 5.1 3.9 5.1 2.8 4.9 2.6 4.9 2.1 4.3 2.0 3.7 2.1 3.0 2.5 2.5 3.0 2.8 1 Includes net increases, decreases, and zero change. 2 Preliminary revised. 3 Preliminary. Excludes lump-sum payments and potential changes from COLA clauses. 4 Changes under settlements reached in the period and effective within 12 months of the contract effective date. 5 Changes under settlements reached in the period expressed as an average annual rate over the life of the contract. Table 2. Rate changes: Average (mean) changes(1) in wages and compensation in state and local government collective bargaining settlements, 1994 (preliminary) (in percent) Measure First-year change(2) Annual change over the life of the contracts(3) Number of workers (000's) Number of settlements Wage changes in settlements covering 1,000 workers or more: All state and local government............... State government........................... Local government........................... 2.7 3.0 2.5 3.0 3.2 3.0 1,182 354 828 332 53 279 Government function General government and administration...... Education.................................. Primary and secondary..................... Colleges and universities................. Protective services........................ Health services............................ Other(4)................................... 2.2 3.1 2.9 4.4 2.3 3.0 2.1 2.6 3.3 3.2 4.2 3.3 3.1 2.5 383 558 494 65 121 49 71 77 187 170 17 37 16 15 All state and local government............... State government........................... Local government........................... 2.8 2.8 2.8 3.1 2.9 3.3 619 267 352 51 16 35 Government function General government and administration...... Education.................................. Primary and secondary..................... Colleges and universities ................ Protective services........................ Other(5)................................... 2.3 3.4 3.3 3.7 1.8 3.6 2.7 3.6 3.6 3.8 2.9 3.4 267 232 199 33 63 58 17 24 21 3 5 5 Compensation changes in settlements covering 5,000 workers or more: 1 Includes net increases, decreases, and zero change. All measures exclude any cash or benefit lump-sum payments and potential changes from COLA clauses. 2 Changes under settlements reached in the period and effective within 12 months of the contract effective date. 3 Changes under settlements reached in the period expressed as an average annual rate over the life of the contract. 4 Includes units in transportation and public utilities. 5 Includes units in health services, transportion and public utilities. NOTE: Because of rounding, sums of individual employment items may not equal totals. Table 3. Rate changes: Percent distribution of workers under state and local government collective bargaining settlements covering 1,000 workers or more by change(1) in wages, 1994 (preliminary) All government State government Local government Measure First-year change(2) Number of workers (in thousands)....................... 1,182 354 828 Percent of workers All settlements...................................... 100 100 100 No wage change.................................... Decreases(3)...................................... Increases......................................... Under 3 percent.................................. 3 and under 4 percent............................ 4 and under 5 percent............................ 5 percent and over .............................. 29 (4) 71 15 19 25 11 20 0 80 10 27 33 9 33 (4) 67 17 16 21 12 Changes (in percent): Mean change.......................................... Median change........................................ Mean increase..................................... Median increase................................... 2.7 3.0 3.8 4.0 3.0 3.1 3.8 4.0 2.5 2.7 3.8 3.9 Annual change over life of contracts(5) Number of workers (in thousands)....................... 1,182 354 828 Percent of workers All settlements...................................... 100 100 100 No wage change.................................... Decreases(3)...................................... Increases......................................... Under 3 percent................................ 3 and under 4 percent.......................... 4 and under 5 percent.......................... 5 percent and over............................. 11 (4) 89 33 23 22 11 7 0 93 25 26 32 11 13 (4) 87 36 23 17 11 Changes (in percent): Mean change.......................................... Median change........................................ Mean increase..................................... Median increase................................... 3.0 3.1 3.4 3.2 3.2 3.3 3.4 3.3 3.0 3.0 3.4 3.2 1 Mean and median changes include net increases, decreases, and zero change. Mean and median increases refer to only those settlements with a net increase. Data exclude lump-sum payments and potential changes from COLA clauses. 2 Changes under settlements reached in the period and effective within 12 months of the contract effective date. 3 Distributions are not shown to protect confidentiality. 4 Less than 0.5 percent. 5 Changes under settlements reached in the period expressed as an average annual rate over the life of the contract. NOTE: Because of rounding, sums of individual employment items may not equal totals. Table 4. Rate changes: Percent distribution of workers under state and local government collective bargaining settlements covering 5,000 workers or more by change(1) in compensation, 1994 (preliminary) Measure Total number of workers (in thousands)......................... First-year change(2) 619 Percent of workers All settlements................................................ 100 No change................................................... Decreases................................................... Increases................................................... 21 0 79 Under 2 percent.......................................... 2 and under 3 percent.................................... 3 and under 4 percent.................................... 4 percent and over....................................... 14 8 38 19 Changes (in percent): Mean change.................................................. Median change................................................ Mean increase............................................. Median increase........................................... 2.8 3.2 3.5 3.7 Annual change over life of contracts(3) Total number of workers (in thousands)......................... 619 Percent of workers All settlements................................................ 100 No change................................................... Decreases................................................... Increases................................................... Under 2 percent.......................................... 2 and under 3 percent.................................... 3 and under 4 percent.................................... 4 percent and over....................................... 3 0 97 20 19 41 17 Changes (in percent): Mean change.................................................. Median change................................................ Mean increase............................................. Median increase........................................... 3.1 3.1 3.2 3.1 1 Mean and median changes include net increases, decreases, and zero change. Mean and median increases refer to only those settlements with a net increase. Data exclude any cash or benefit lump-sum payments and potential changes from COLA clauses. 2 Changes under settlements reached in the period and effective within 12 months of the contract effective date. 3 Changes under settlements reached in the period expressed as an average annual rate over the life of the contract. NOTE: Because of rounding, sums of individual employment items may not equal totals. Table 5. Rate changes: Selected characteristics of settlements covering 1,000 workers or more, by duration of contract, 1994 (preliminary) Contract duration Measure All contracts 12 months or less More than 12 and less than 24 months 24 months More than 24 and less than 36 months 36 months More than 36 months Number of settlements................... 332 118 43 68 11 65 27 Number of workers (in thousands)........ 1,182 474 120 182 44 232 131 Average contract duration (months)...... 22.4 11.7 14.2 24.0 26.9 36.0 41.3 Annualized over the contract term..... 3.0 3.2 4.1 2.6 3.2 3.0 2.3 Occurring in: First contract year(2)................ Second contract year(3)............... Third contract year(4)................ 2.7 2.4 3.3 3.0 NA NA 3.9 0.6 NA 2.1 3.0 NA 2.8 3.0 1.3 2.5 3.5 3.1 1.3 1.0 4.4 Percent change in wages:(1) 1 Includes net increases, decreases, and zero change. Excludes lump-sum payments and potential changes from COLA clauses. 2 Data are not annualized. 3 Average is based only on settlements with a duration greater than 12 months. Data are not annualized. 4 Average is based only on settlements with a duration greater than 24 months. Data are not annualized. NOTE: "NA" indicates not applicable. Because of rounding, sums of individual employment items may not equal totals. Table 6. Rate changes: Average (mean) changes(1) in wages and compensation in state and local government collective bargaining settlements, last half of 1994 (preliminary) (in percent) Measure First-year change(2) Annual change over the life of the contracts(3) Number of workers (000's) Number of settlements Wage changes in settlements covering 1,000 workers or more: All State and local government............... State government........................... Local government........................... 2.5 2.4 2.5 3.0 2.6 3.0 648 98 550 172 19 153 Government function General government and administration.... Education................................ Primary and secondary................... Colleges and universities............... Protective services...................... Health services.......................... Other(4)................................. 1.7 3.1 3.1 3.8 1.4 2.3 2.5 2.4 3.3 3.3 3.7 3.1 2.7 2.6 141 341 324 17 77 29 59 36 96 93 3 19 10 11 All State and local government............... State government........................... Local government........................... 2.6 2.4 2.7 3.0 2.0 3.2 352 69 283 32 6 26 Government function General government and administration.... Education................................ Other(5)................................. 1.9 3.3 2.0 2.5 3.5 2.6 89 170 93 9 16 7 Compensation changes in settlements covering 5,000 workers or more: 1 Includes net increases, decreases, and zero change. All measures exclude any cash or benefit lump-sum payments and potential changes from COLA clauses. 2 Changes under settlements reached in the period and effective within 12 months of the contract effective date. 3 Changes under settlements reached in the period expressed as an average annual rate over the life of the contract. 4 Includes units in transportation and public utilities. 5 Includes units in protective services, health services, transportation and public utilities. NOTE: Because of rounding, sums of individual employment items may not equal totals. Table 7. Rate changes: Average (mean) changes(1) in wages and compensation in state and local government collective bargaining settlements, by year and 6-month periods (in percent) Annual averages Six-month averages Measure 1992 1992 Wage changes in settlements covering 1,000 workers or more: First year(4) All state and local government........ State government.................... Local government.................... Annual average over the life of the contract(5) All state and local government........ State government.................... Local government.................... 1993 1993 1994(2) 1994(2) First half Second half First half Second half First half(3) Second half(2) 1.1 0.5 1.7 1.1 1.3 1.0 2.7 3.0 2.5 1.4 0.8 1.8 0.9 0.2 1.6 1.1 1.4 0.8 1.2 1.1 1.3 2.9 3.2 2.5 2.5 2.4 2.5 2.1 2.0 2.1 2.1 2.4 1.9 3.0 3.2 3.0 2.5 2.8 2.3 1.7 1.4 1.9 2.1 2.8 1.7 2.0 1.6 2.1 3.1 3.4 2.9 3.0 2.6 3.0 1 Includes net increases, decreases, and zero change. All measures exclude any cash or benefit lump-sum payments and potential changes from COLA clauses. 2 Preliminary. 3 Preliminary revised. 4 Changes under settlements reached in the period and effective within 12 months of the contract effective date. 5 Changes under settlements reached in the period expressed as an average annual rate over the life of the contract. Table 8. Rate changes: Average (mean) changes(1) in wages and compensation in state and local government collective bargaining settlements during 12-month periods (in percent) Twelve months ended Measure Wage changes in settlements covering 1,000 workers or more: First year(4) All State and local government............ State government........................ Local government........................ Annual average over the life of the contract(5) 1992 1993 1994 June Dec. June Dec. June(2) Dec.(3) 1.6 1.0 2.0 1.1 0.5 1.7 1.0 0.9 1.1 1.1 1.3 1.0 1.9 2.3 1.7 2.7 3.0 2.5 All State and local government......... State government..................... Local government..................... Compensation changes in settlements covering 5,000 workers or more: First year(4) All State and local government............ State government...................... Local government...................... Annual over life of contract(5) All State and local government......... State government..................... Local government..................... 2.6 2.9 2.4 2.1 2.0 2.1 2.0 2.2 1.7 2.1 2.4 1.9 2.5 2.6 2.4 3.0 3.2 3.0 1.0 0.8 1.6 0.6 0.2 1.4 0.8 0.8 0.8 0.9 1.2 0.7 1.5 2.1 1.1 2.8 2.8 2.8 2.6 2.8 2.1 1.9 2.0 1.5 1.7 2.1 1.2 1.8 2.1 1.6 2.2 2.4 2.0 3.1 2.9 3.3 1 Includes net increases, decreases, and zero change. 2 Preliminary revised. 3 Preliminary. 4 Changes under settlements reached in the period and effective within 12 months of the contract effective date. 5 Changes under settlements reached in the period expressed as an average annual rate over the life of the contract. Table 9. Cost changes: Average (mean) changes(1) in the cost of compensation and components annualized over the life of the contract(2) in state and local government collective bargaining settlements covering 5,000 workers or more, by 6-month periods, and during 12-month periods (in percent) 1992 1993 1994 Item First half All state and local government Compensation .................. Cash payments (5).............. Wages......................... Benefits....................... 1.2 1.3 1.2 1.1 Second half 0.5 0.7 0.7 0.4 First half 1.0 1.1 0.9 0.9 Second First Second half half(3) half(4) 0.9 1.0 1.0 0.8 2.2 2.4 2.4 1.8 2.2 1.9 1.8 3.4 Twelve months ended June Dec. June Dec. 1.8 1.3 1.2 1.8 0.8 1.0 0.9 0.7 0.8 0.9 0.8 0.7 1.0 1.0 1.0 0.8 1.4 1.6 1.5 1.2 2.2 2.1 2.1 2.7 - 0.9 1.0 1.0 0.8 0.9 1.0 1.0 0.8 - - 1.2 1.5 0.7 0.6 1.8 1.3 1.2 1.8 0.8 0.9 0.9 0.7 0.8 0.9 0.8 0.7 1.0 1.0 1.0 0.8 1.4 1.6 1.5 1.2 2.3 2.1 2.1 2.8 State government Compensation................... Cash payments(5)............... Wages......................... Benefits....................... 2.1 1.3 1.2 1.9 0.9 0.9 0.9 0.7 1.0 1.1 1.1 0.8 1.2 1.3 1.2 0.9 1.6 1.8 1.7 1.3 1.9 2.1 2.1 1.7 Local government Compensation................... Cash payments(5)............... Wages......................... Benefits....................... 1.3 1.2 1.2 1.4 0.8 1.1 1.0 0.7 0.6 0.7 0.6 0.5 0.8 0.9 0.8 0.7 1.3 1.4 1.4 1.1 2.5 2.1 2.1 3.5 All state and local government Compensation................... Cash payments(5)............... Wages......................... Benefits....................... With contingent pay provisions(6) Compensation................... Cash payments(5)............... Wages......................... Benefits....................... Without contingent pay provisions(7) Compensation................... Cash payments(5)............... Wages......................... Benefits....................... June(3) Dec.(4) 1 Includes net increases, decreases, and no change. Excludes potential changes from contingent pay provisions. 2 Changes under settlements reached in the period expressed as an average annual (compound) rate over the life of the contract. 3 Preliminary revised. 4 Preliminary. 5 Cash payments include wages and lump-sum payments. 6 Contingent pay provisions include COLA clauses and/or contingent lump-sum payment clauses. Data exclude potential changes from contingent pay provisions. 7 Data exclude potential changes from contingent pay provisions. NOTE: "-" indicate no observations. Table 10. Rate changes: Average changes in wages in state and local government collective bargaining agreements covering 1,000 workers or more, by year and six-month periods (in percent) Annual averages Six-month averages Item 1992 1992 1993 1993 1994 1994(1) First half Second half First half Second First Second half half(2) half(1) Average wage rate changes (3).... 1.9 2.8 3.3 0.7 1.1 1.1 1.6 1.0 2.3 Source: Current settlements............ Prior settlements........... COLA provisions............. 0.8 1.1 (4) 1.6 1.1 (4) 1.4 1.9 (4) 0.3 0.5 (4) 0.5 0.6 (4) 0.6 0.6 (4) 1.0 0.6 (4) 0.2 0.8 (4) 1.2 1.1 (4) Government function General government and administration.................. Education................... Primary and secondary..... Colleges and universities. Protective services......... Health services............. Transportation.............. Other....................... 1.9 2.0 2.1 1.1 1.2 1.9 3.4 0.7 2.8 2.5 2.3 3.3 2.9 3.7 2.5 3.1 3.2 3.1 3.1 3.2 4.2 3.8 2.9 3.7 0.9 0.5 0.5 0.2 0.7 1.0 1.6 0.2 1.0 1.5 1.6 1.0 0.5 0.9 1.8 0.5 1.4 0.6 0.5 1.3 1.3 1.8 1.4 1.3 1.4 1.8 1.8 2.0 1.6 1.9 1.1 1.8 1.0 0.7 0.7 1.0 1.4 1.7 0.8 1.0 2.2 2.4 2.5 2.1 2.8 2.1 2.1 2.7 Average wage rate increase(5).... 4.6 4.1 4.4 3.7 3.8 4.1 3.4 3.7 3.7 Source:(6) Current settlements............ Prior settlements........... COLA provisions............. 5.1 4.3 2.7 4.0 3.8 1.6 4.3 4.4 0.8 3.6 3.8 1.9 4.0 3.7 1.9 5.6 3.2 1.3 3.2 4.0 0.9 4.1 3.6 0.7 4.1 3.3 0.6 Number of workers receiving wage increases (in thousands)(7)..... 1,125.3 1,849.4 2,126.6 Source: Current settlements............ Prior settlements........... COLA provisions............. 441.7 1,119.0 919.5 676.2 803.9 1,212.5 22.6 24.0 22.7 Number of workers not receiving a wage increase (in thousands)(8). 1,544.3 880.0 559.5 811.6 799.6 1,280.9 754.6 1,771.2 209.3 339.2 17.4 372.5 428.5 15.1 300.4 494.1 18.8 148.2 594.3 20.6 891.3 376.0 17.3 820.1 952.8 3.5 660.2 2,110.1 1,858.0 1,929.8 1,448.5 2,032.3 1,015.7 1 Preliminary. 2 Preliminary revised. 3 Includes increases, decreases, and zero change in wages stemming from current settlements, settlements reached in a prior period, and COLA clauses. Because of rounding and compounding, sums of individual items may not equal totals. 4 More than 0 and less than 0.05 percent. 5 Reflects only contracts where the net effect of increases and decreases from all sources is a wage rate increase. 6 Reflects only contracts where the net effect of increases and decreases from each source is a wage rate increase. 7 The employment total does not equal the sum of employment for each source, because some workers receive wage changes from more than one source. 8 Less than two percent of these workers received wage decreases and the remainder received zero change. Table 11. Rate changes: Average changes in wages in state and local government collective bargaining agreements covering 1,000 workers or more during 12-month periods (in percent) Twelve months ended Item 1992 First half 1993 Second half First half 1994 Second First Second half half(1) half(2) Average wage rate changes (3)......... 2.3 1.9 2.3 2.8 2.6 3.3 Source: Current settlements............. Prior settlements............... 0.7 1.6 0.8 1.1 1.1 1.2 1.6 1.1 1.3 1.3 1.4 1.9 COLA provisions................. (4) (4) (4) (4) (4) (4) Government function General government and administration.......................... Education........................ Primary and secondary.......... Colleges and universities...... Protective services.............. Health services.................. Transportation................... Other............................ 2.3 2.4 2.5 1.9 2.3 2.3 2.9 2.2 1.9 2.0 2.1 1.1 1.2 1.9 3.4 0.7 2.6 2.2 2.1 2.3 1.7 2.6 3.2 2.0 2.8 2.5 2.3 3.3 2.9 3.7 2.5 3.1 2.4 2.6 2.5 3.2 3.0 3.5 1.9 2.7 3.2 3.1 3.1 3.2 4.2 3.8 2.9 3.7 Average wage rate increase(5)......... 4.6 4.6 4.8 4.1 3.8 4.4 Source:(6) Current settlements............. Prior settlements............... COLA provisions................. 3.3 4.9 2.4 5.1 4.3 2.7 4.8 4.3 2.1 4.0 3.8 1.6 3.4 3.9 1.2 4.3 4.4 0.8 Number of workers receiving wage increases (in thousands)(7)....... 1,357.5 1,125.3 1,345.9 1,849.4 1,858.1 2,126.6 Source: Current settlements............. Prior settlements............... COLA provisions................. 572.8 877.1 37.4 441.7 676.2 22.6 660.6 1,119.0 1,016.1 919.5 750.5 803.9 941.2 1,212.5 25.3 24.0 24.7 22.7 Number of workers not receiving a wage increase (in thousands)(8)........ 1,266.6 1,544.3 1,323.9 880.0 871.4 660.2 1 Preliminary revised. 2 Preliminary. 3 Includes increases, decreases, and zero change in wages stemming from current settlements, agreements reached in a prior period, and COLA clauses. Because of rounding and compounding, sums of individual items may not equal totals. 4 More than 0 and less than 0.05 percent. 5 Reflects only contracts where the net effect of increases and decreases from all sources is an increase. 6 Reflects only contracts where the net effect of increases and decreases from each source is an increase. 7 The employment total does not equal the sum of employment for each source, because some workers receive wage changes from more than one source. 8 Less than two percent of these workers received wage decreases and the remainder received zero change.