Making new inroads: union bargaining in 1987.

MAKING NEW INROADS: Union Bargaining in 1987

Contracts that include cost-of-living allowances (COLAs) to keep up with inflation triggered an average gain of 2.6 percent. Wage adjustments stemming from COLA reviews in 1987 averaged 43 percent of earnings increases during the COLA review period, according to the BLS.

In addition, workers who won wage increases can look forward to a 3.3 percent gain in deferred adjustments in 1988, the BLS reported.

In estimating the value of the settlements its survey covers, BLS does not include lump-sum payments, profit-sharing arrangements, stock bonus plans, cost-of-living adjustments or worker retraining funds. Such contract elements recently have increased in importance, so that the real value of settlements is understated.

Union members' wages and benefits are increasing more slowly than earnings for non-union workers, according to the BLS. Employer costs for union workers' wages and benefits increased by 2.8 percent in 1987, while the cost for non-union workers rose by 3.6 percent. Much of this rise is due to the 4.4 percent average raises given to managerial employees.

Though non-union workers gained larger increases, they have a long way to go to close the $123-a-week gap between their median earnings and what union members earned in 1987. The BLS reported that median weekly earnings of union members stood at $465 and non-union workers were paid $342, a difference of 36 percent.

Catching up from years of restrained settlements, state and local government workers won effective wage increases averaging 5.7 percent in 1987, according to the BLS. Though higher than the wage rate increases won by private sector employees, the average ...