Wage Rule Formation in the Aerospace Industry

This study of wage bargaining in the aerospace industry focuses particularly on lump sum bonuses, one-time cash disbursements that generally accompany lower increases in the base wage than were formerly standard. Although such bonuses, which appeared in aerospace companies before they appeared in ot...

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Bibliographic Details
Published in:Industrial & labor relations review 1992-04, Vol.45 (3), p.507-522
Main Author: Erickson, Christopher L.
Format: Article
Language:English
Subjects:
Aerospace industry
Aircraft industry
Automobile industry
Business structures
Collective bargaining
Commercial aircraft
Compensation and benefits
Contract negotiations
Contracts
Cost of living adjustments
Industry (aerospace)
Labor management relations
Labor relations
Labor unions
Lump sum
Lump sum payments
Management
Manufacturing Industry
Manycompanies
Motor Vehicles
Negotiation, mediation and arbitration
Pay for performance
Regulation
Settlements & damages
Studies
Union contracts
Unions
United States
Wage determination
Wage increases
Wages
Wages & salaries
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Summary:This study of wage bargaining in the aerospace industry focuses particularly on lump sum bonuses, one-time cash disbursements that generally accompany lower increases in the base wage than were formerly standard. Although such bonuses, which appeared in aerospace companies before they appeared in other large manufacturing industries, were viewed as a union concession, they persisted into the 1989 bargaining round despite a sharp upturn in the fortunes of the most prominent aerospace company. The author regards that fact, as well as the weakening of both inter- and intra-industry pattern bargaining, as support for the view that a significant shift in union wage determination occurred in the 1980s. He argues, however, based on interviews with managers, union officials, and workers, that consensus has not yet been achieved on the meaning of this shift.
ISSN:0019-7939
2162-271X
DOI:10.1177/001979399204500307