Labor Contracts

The Content of LaborAgreements: 

The Content of Labor Agreements

Compensation Costs, 1992-2003 : 

Compensation Costs, 1992-2003

Real Wages, 1980-2004: 

Real Wages, 1980-2004

Overview of the Contract: 

Overview of the Contract Language items Statutory rights of individuals Contractual rights for employers Contractual rights for unions Contractual rights for employees Economic items Statutory economic entitlements Contractual rights of employees

Language Items: 

Language Items Management Rights Clause Express provisions Reserved rights theory (general rule) Union Security and Checkoff Require membership (financial core obligation after 30 days of employment; Taft-Hartley modification of Wagner Act) Require payment of service fee (agency shop) Require maintenance of membership Right to work laws (maps) Construction industry proviso (Sec. 8(f): union security in effect after 7th day of employment; not legal in RTW states) Colorado’s modified right to work law State election to approve (per Labor Peace Act interpretation, 1977) Majority of eligible voters, or 75% of actual voters, whichever is greater (e.g., 100 eligible, 80 voters = 60 votes to pass)

Right to Work States: 

Right to Work States

Union Affiliation of Employed Wage and Salary Workers by State in 20031 (Numbers in Thousands): 

Union Affiliation of Employed Wage and Salary Workers by State in 20031 (Numbers in Thousands) 1 Data refer to members of a labor union. * Right to Work State ** Modified Right to Work State

Language Items: 

Language Items Seniority (as applied to) compensation Promotion (relative ability clauses) Layoffs Job assignments and other work activities Job Security Subcontracting of work Right to retraining Guaranteed employment (e.g., Ford contract) Bargain over relocation Bargaining unit work Successors and assigns clause (contract follows sale of assets)

Language Items: 

Language Items Health and Safety Workplace committees to resolve safety issues Responsibility for safety equipment Discipline and Discharge Modification of employment at will rule Standard of “just cause” for discharge Enforced through grievance and arbitration

Social Security Funding: 

Social Security Funding

Economic Items in the Contract:Wages: 

Economic Items in the Contract: Wages Using inflation and wage growth as factors Labor market conditions (overheads on wages and minimum wage) Cost of Living Adjustment (COLA) Formula: ¢1 per .4 increase in CPI 120 to 132 = 12.0 points x .4 = ¢30 $10.00 hour rate becomes $10.30 (need 10% increase)

Economic Items in the Contract:Wages (continued): 

Economic Items in the Contract: Wages (continued) When are wages adjusted? Contractual wage re-opener (e.g., after 2 years) Job classifications based on evaluative factors Skill, training (“human capital”) Responsibility Physical and mental effort Working conditions

Economic Items in the Contract:Fringe Benefits: 

Economic Items in the Contract: Fringe Benefits Health Insurance Some data about health insurance in US (overheads) Allocating the costs of health care Continuing benefits (COBRA): coverage after a qualifying event; employee pays 102% of cost; terminates after time or with other coverage Health Insurance Portability and Accountability (1996): continues coverage after job change and protects pre-existing conditions; tax break for self-insured; no requirement to provide insurance

Economic Items in the Contract:Fringe Benefits (continued): 

Economic Items in the Contract: Fringe Benefits (continued) Pensions Defined benefit plans Defined contribution plans (401k) Application of ERISA (vesting and information The Pension Benefit Guaranty Corp. (e.g., United Airlines)

Health Care Costs: 

Health Care Costs

Health Care Costs: 

Health Care Costs

Economic Items in the Contract:Fringe Benefits (continued): 

Economic Items in the Contract: Fringe Benefits (continued) Holidays Total number of days Designation of days (Halloween?) Eligibility for benefit: work requirement Premium Pay Overtime (after 8 hours); Holiday work (e.g., 2x base rate) Reporting pay Shift differential (e.g., swing or nights)

Economic Items in the Contract: Fringe Benefits (continued): 

Economic Items in the Contract: Fringe Benefits (continued) Vacations Earned by seniority Amounts of graduated benefits (e.g., 3 weeks after 5 years) Sick Leave Amount of benefit Administrative restrictions on use

Economic Items in the Contract: Fringe Benefit (continued): 

Economic Items in the Contract: Fringe Benefit (continued) Other Paid Leaves Jury duty (Colorado statute protecting jury service) Family and medical leave – coordination with FMLA Miscellaneous Working clothes, tools, special equipment Tuition reimbursements