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Our paper seeks to provide an explanation for why the prevalence of COLA provisions and their characteristics vary widely across U.S. industries. We develop models of optimal risk sharing between a firm and union that allows us to investigate the determinants of a number of characteristics of union contracts. These include the presence of wage indexation, the degree of wage indexation if it exists, the magnitude of deferred noncontingent (on the price level) wage increases, the duration of labor contracts and the trade-off between temporary layoffs and wage indexation. Preliminary empirical tests of some of the implications of the model are conducted using industry data on both the prevalence of COLA provisions and layoff rates, and using contract level data on the characteristics of COLA provisions and contract duration. One key finding is that the level of unemployment insurance benefits appears to simultaneously influence the level of layoffs and the extent of COLA coverage.
Report on topics frequently covered in collective agreements in public administration in the USA.
Unionization of teachers has led to fundamental changes in the management of education and in relations between teachers and school districts. Understanding the Teacher Union Contract explores the implications of this collective-bargaining revolution in education. Through detailed examination Lieberman shows how the kinds of provisions typically found in teacher union contracts affect the educational workplace and education reform, and how they might be revised to the benefit of students, parents, and the public. Lieberman begins with the respective roles of school district management and teacher unions. Unlike managers in the private sector, school district officials are part of a government agency that is legally responsible for operating public schools in the public interest. They must balance the interests of employees with the needs of students, taxpayers, and parents, as well as with district educational goals. Teacher unions' primary objectives are to enhance employee welfare and to promote the union as an effective organization. Unions must balance the differing needs of various groups within their membership -- for example, by resolving tensions between older teachers who want improved retirement benefits and younger teachers who might prefer more rapid salary increases. Lieberman shows how competing union and management goals play out in collective bargaining and are embodied in teacher union contracts. He argues that by developing an understanding of teacher unions, their role, and their needs, district officials and school board members can bargain more effectively and develop a productive ongoing relationship with unions. This highly readable book will be of interestnot only to school administrators and board members but also to teacher representatives, parents, taxpayers, and members of the media who report on education.