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Table 1. Rate changes: Average (mean) changes(1)in wages under current and replaced state and local government collective
Table 2. Rate changes: Average (mean) changes(1) in wages and compensation in state and local
Table 3. Rate changes: Percent distribution of workers under state and local government collective
Table 4. Rate changes: Percent distribution of workers under state and local government collective
Table 5. Rate changes: Selected characteristics of settlements covering 1,000 workers or more, by duration of
Table 6. Rate changes: Average (mean) changes(1) in wages and compensation in state and local
Table 7. Rate changes: Average (mean) changes(1) in wages and compensation in state and local government collective
Table 8. Rate changes: Average (mean) changes(1) in wages and compensation in state and local
Table 9. Cost changes: Average (mean) changes(1) in the cost of compensation and
Table 10. Rate changes: Average changes in wages in state and local government collective bargaining
Table 11. Rate changes: Average changes in wages in state and local government
Technical information: USDL: 95-91
Joan Borum (202) 606-6280 For release: 10:00 A.M. EST
Media contact: (202) 606-5902 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 Second First Second First Second First Second First Second
half half half half half half half half half(2) half(3)
First year change(4)
Current settlements............... 5.0 4.8 2.6 1.8 1.4 0.9 1.1 1.2 2.9 2.5
Replaced settlements.............. 4.6 5.3 4.9 5.0 4.9 4.4 3.4 2.4 2.5 2.0
Annual changes over the contract
term(5)
Current settlements............... 5.0 4.9 2.6 2.8 2.5 1.7 2.2 2.0 3.1 3.0
Replaced settlements.............. 4.4 5.5 4.6 5.2 4.7 3.9 3.5 2.5 2.8 2.8
12 months ended
First year change(4)
Current settlements............... 5.1 4.9 3.8 2.3 1.6 1.1 1.0 1.1 1.9 2.7
Replaced settlements.............. 5.1 5.0 5.1 4.9 4.9 4.6 3.8 2.9 2.4 2.0
Annual changes over the contract
term(5)
Current settlements............... 5.2 5.0 3.9 2.8 2.6 2.1 2.0 2.1 2.5 3.0
Replaced settlements.............. 5.0 5.1 5.1 4.9 4.9 4.3 3.7 3.0 2.5 2.8
1 Includes net increases, decreases, and zero change. Excludes lump-sum payments and potential changes from COLA clauses.
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 2. Rate changes: Average (mean) changes(1) in wages and compensation in state and local
government collective bargaining settlements, 1994 (preliminary)
(in percent)
Annual
First-year change Number of Number of
Measure change(2) over the workers settlements
life of the (000's)
contracts(3)
Wage changes in settlements
covering 1,000 workers or more:
All state and local government............... 2.7 3.0 1,182 332
State government........................... 3.0 3.2 354 53
Local government........................... 2.5 3.0 828 279
Government function
General government and administration...... 2.2 2.6 383 77
Education.................................. 3.1 3.3 558 187
Primary and secondary..................... 2.9 3.2 494 170
Colleges and universities................. 4.4 4.2 65 17
Protective services........................ 2.3 3.3 121 37
Health services............................ 3.0 3.1 49 16
Other(4)................................... 2.1 2.5 71 15
Compensation changes in settlements
covering 5,000 workers or more:
All state and local government............... 2.8 3.1 619 51
State government........................... 2.8 2.9 267 16
Local government........................... 2.8 3.3 352 35
Government function
General government and administration...... 2.3 2.7 267 17
Education.................................. 3.4 3.6 232 24
Primary and secondary..................... 3.3 3.6 199 21
Colleges and universities ................ 3.7 3.8 33 3
Protective services........................ 1.8 2.9 63 5
Other(5)................................... 3.6 3.4 58 5
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 State Local
government government 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.................................... 29 20 33
Decreases(3)...................................... (4) 0 (4)
Increases......................................... 71 80 67
Under 3 percent.................................. 15 10 17
3 and under 4 percent............................ 19 27 16
4 and under 5 percent............................ 25 33 21
5 percent and over .............................. 11 9 12
Changes (in percent):
Mean change.......................................... 2.7 3.0 2.5
Median change........................................ 3.0 3.1 2.7
Mean increase..................................... 3.8 3.8 3.8
Median increase................................... 4.0 4.0 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.................................... 11 7 13
Decreases(3)...................................... (4) 0 (4)
Increases......................................... 89 93 87
Under 3 percent................................ 33 25 36
3 and under 4 percent.......................... 23 26 23
4 and under 5 percent.......................... 22 32 17
5 percent and over............................. 11 11 11
Changes (in percent):
Mean change.......................................... 3.0 3.2 3.0
Median change........................................ 3.1 3.3 3.0
Mean increase..................................... 3.4 3.4 3.4
Median increase................................... 3.2 3.3 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 First-year change(2)
Total number of workers (in thousands)......................... 619
Percent of workers
All settlements................................................ 100
No change................................................... 21
Decreases................................................... 0
Increases................................................... 79
Under 2 percent.......................................... 14
2 and under 3 percent.................................... 8
3 and under 4 percent.................................... 38
4 percent and over....................................... 19
Changes (in percent):
Mean change.................................................. 2.8
Median change................................................ 3.2
Mean increase............................................. 3.5
Median increase........................................... 3.7
Annual change over
life of contracts(3)
Total number of workers (in thousands)......................... 619
Percent of workers
All settlements................................................ 100
No change................................................... 3
Decreases................................................... 0
Increases................................................... 97
Under 2 percent.......................................... 20
2 and under 3 percent.................................... 19
3 and under 4 percent.................................... 41
4 percent and over....................................... 17
Changes (in percent):
Mean change.................................................. 3.1
Median change................................................ 3.1
Mean increase............................................. 3.2
Median increase........................................... 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 More than More than
All 12 months 12 and 24 months 24 and 36 months More than
contracts or less less than less than 36 months
24 months 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
Percent change in wages:(1)
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)................ 2.7 3.0 3.9 2.1 2.8 2.5 1.3
Second contract year(3)............... 2.4 NA 0.6 3.0 3.0 3.5 1.0
Third contract year(4)................ 3.3 NA NA NA 1.3 3.1 4.4
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)
Annual
First-year change Number of Number of
Measure change(2) over the workers settlements
life of the (000's)
contracts(3)
Wage changes in settlements
covering 1,000 workers or more:
All State and local government............... 2.5 3.0 648 172
State government........................... 2.4 2.6 98 19
Local government........................... 2.5 3.0 550 153
Government function
General government and administration.... 1.7 2.4 141 36
Education................................ 3.1 3.3 341 96
Primary and secondary................... 3.1 3.3 324 93
Colleges and universities............... 3.8 3.7 17 3
Protective services...................... 1.4 3.1 77 19
Health services.......................... 2.3 2.7 29 10
Other(4)................................. 2.5 2.6 59 11
Compensation changes in settlements
covering 5,000 workers or more:
All State and local government............... 2.6 3.0 352 32
State government........................... 2.4 2.0 69 6
Local government........................... 2.7 3.2 283 26
Government function
General government and administration.... 1.9 2.5 89 9
Education................................ 3.3 3.5 170 16
Other(5)................................. 2.0 2.6 93 7
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 1993 1994(2)
1992 1993 1994(2)
First Second First Second First Second
half half half half half(3) half(2)
Wage changes in settlements covering 1,000
workers or more:
First year(4)
All state and local government........ 1.1 1.1 2.7 1.4 0.9 1.1 1.2 2.9 2.5
State government.................... 0.5 1.3 3.0 0.8 0.2 1.4 1.1 3.2 2.4
Local government.................... 1.7 1.0 2.5 1.8 1.6 0.8 1.3 2.5 2.5
Annual average over the life of the
contract(5)
All state and local government........ 2.1 2.1 3.0 2.5 1.7 2.1 2.0 3.1 3.0
State government.................... 2.0 2.4 3.2 2.8 1.4 2.8 1.6 3.4 2.6
Local government.................... 2.1 1.9 3.0 2.3 1.9 1.7 2.1 2.9 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 1992 1993 1994
June Dec. June Dec. June(2) Dec.(3)
Wage changes in settlements covering 1,000
workers or more:
First year(4)
All State and local government............ 1.6 1.1 1.0 1.1 1.9 2.7
State government........................ 1.0 0.5 0.9 1.3 2.3 3.0
Local government........................ 2.0 1.7 1.1 1.0 1.7 2.5
Annual average over the life of the
contract(5)
All State and local government......... 2.6 2.1 2.0 2.1 2.5 3.0
State government..................... 2.9 2.0 2.2 2.4 2.6 3.2
Local government..................... 2.4 2.1 1.7 1.9 2.4 3.0
Compensation changes in settlements
covering 5,000 workers or more:
First year(4)
All State and local government............ 1.0 0.6 0.8 0.9 1.5 2.8
State government...................... 0.8 0.2 0.8 1.2 2.1 2.8
Local government...................... 1.6 1.4 0.8 0.7 1.1 2.8
Annual over life of contract(5)
All State and local government......... 2.6 1.9 1.7 1.8 2.2 3.1
State government..................... 2.8 2.0 2.1 2.1 2.4 2.9
Local government..................... 2.1 1.5 1.2 1.6 2.0 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 Second First Second First Second
half half half half half(3) half(4)
All state and local government
Compensation .................. 1.2 0.5 1.0 0.9 2.2 2.2
Cash payments (5).............. 1.3 0.7 1.1 1.0 2.4 1.9
Wages......................... 1.2 0.7 0.9 1.0 2.4 1.8
Benefits....................... 1.1 0.4 0.9 0.8 1.8 3.4
Twelve months ended
June Dec. June Dec. June(3) Dec.(4)
All state and local government
Compensation................... 1.8 0.8 0.8 1.0 1.4 2.2
Cash payments(5)............... 1.3 1.0 0.9 1.0 1.6 2.1
Wages......................... 1.2 0.9 0.8 1.0 1.5 2.1
Benefits....................... 1.8 0.7 0.7 0.8 1.2 2.7
With contingent pay provisions(6)
Compensation................... - 0.9 0.9 - - 1.2
Cash payments(5)............... - 1.0 1.0 - - 1.5
Wages......................... - 1.0 1.0 - - 0.7
Benefits....................... - 0.8 0.8 - - 0.6
Without contingent pay
provisions(7)
Compensation................... 1.8 0.8 0.8 1.0 1.4 2.3
Cash payments(5)............... 1.3 0.9 0.9 1.0 1.6 2.1
Wages......................... 1.2 0.9 0.8 1.0 1.5 2.1
Benefits....................... 1.8 0.7 0.7 0.8 1.2 2.8
State government
Compensation................... 2.1 0.9 1.0 1.2 1.6 1.9
Cash payments(5)............... 1.3 0.9 1.1 1.3 1.8 2.1
Wages......................... 1.2 0.9 1.1 1.2 1.7 2.1
Benefits....................... 1.9 0.7 0.8 0.9 1.3 1.7
Local government
Compensation................... 1.3 0.8 0.6 0.8 1.3 2.5
Cash payments(5)............... 1.2 1.1 0.7 0.9 1.4 2.1
Wages......................... 1.2 1.0 0.6 0.8 1.4 2.1
Benefits....................... 1.4 0.7 0.5 0.7 1.1 3.5
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 1993 1994
1992 1993 1994(1)
First Second First Second First Second
half half half 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............ 0.8 1.6 1.4 0.3 0.5 0.6 1.0 0.2 1.2
Prior settlements........... 1.1 1.1 1.9 0.5 0.6 0.6 0.6 0.8 1.1
COLA provisions............. (4) (4) (4) (4) (4) (4) (4) (4) (4)
Government function
General government and
administration.................. 1.9 2.8 3.2 0.9 1.0 1.4 1.4 1.0 2.2
Education................... 2.0 2.5 3.1 0.5 1.5 0.6 1.8 0.7 2.4
Primary and secondary..... 2.1 2.3 3.1 0.5 1.6 0.5 1.8 0.7 2.5
Colleges and universities. 1.1 3.3 3.2 0.2 1.0 1.3 2.0 1.0 2.1
Protective services......... 1.2 2.9 4.2 0.7 0.5 1.3 1.6 1.4 2.8
Health services............. 1.9 3.7 3.8 1.0 0.9 1.8 1.9 1.7 2.1
Transportation.............. 3.4 2.5 2.9 1.6 1.8 1.4 1.1 0.8 2.1
Other....................... 0.7 3.1 3.7 0.2 0.5 1.3 1.8 1.0 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............ 5.1 4.0 4.3 3.6 4.0 5.6 3.2 4.1 4.1
Prior settlements........... 4.3 3.8 4.4 3.8 3.7 3.2 4.0 3.6 3.3
COLA provisions............. 2.7 1.6 0.8 1.9 1.9 1.3 0.9 0.7 0.6
Number of workers receiving wage
increases (in thousands)(7)..... 1,125.3 1,849.4 2,126.6 559.5 811.6 799.6 1,280.9 754.6 1,771.2
Source:
Current settlements............ 441.7 1,119.0 919.5 209.3 372.5 300.4 891.3 148.2 820.1
Prior settlements........... 676.2 803.9 1,212.5 339.2 428.5 494.1 376.0 594.3 952.8
COLA provisions............. 22.6 24.0 22.7 17.4 15.1 18.8 17.3 20.6 3.5
Number of workers not receiving a
wage increase (in thousands)(8). 1,544.3 880.0 660.2 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 1993 1994
First Second First Second First Second
half half half 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............. 0.7 0.8 1.1 1.6 1.3 1.4
Prior settlements............... 1.6 1.1 1.2 1.1 1.3 1.9
COLA provisions................. (4) (4) (4) (4) (4) (4)
Government function
General government and
administration.......................... 2.3 1.9 2.6 2.8 2.4 3.2
Education........................ 2.4 2.0 2.2 2.5 2.6 3.1
Primary and secondary.......... 2.5 2.1 2.1 2.3 2.5 3.1
Colleges and universities...... 1.9 1.1 2.3 3.3 3.2 3.2
Protective services.............. 2.3 1.2 1.7 2.9 3.0 4.2
Health services.................. 2.3 1.9 2.6 3.7 3.5 3.8
Transportation................... 2.9 3.4 3.2 2.5 1.9 2.9
Other............................ 2.2 0.7 2.0 3.1 2.7 3.7
Average wage rate increase(5)......... 4.6 4.6 4.8 4.1 3.8 4.4
Source:(6)
Current settlements............. 3.3 5.1 4.8 4.0 3.4 4.3
Prior settlements............... 4.9 4.3 4.3 3.8 3.9 4.4
COLA provisions................. 2.4 2.7 2.1 1.6 1.2 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............. 572.8 441.7 660.6 1,119.0 1,016.1 919.5
Prior settlements............... 877.1 676.2 750.5 803.9 941.2 1,212.5
COLA provisions................. 37.4 22.6 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.