Collective Bargaining Highlights--September 2007
7. Wage Adjustments
Third quarter settlements provided an overall average annual wage increase of 3.5%, an increase from 3.1% in the previous quarter. In the private sector, the average annual wage increase rose to 3.7% from 3% in the previous quarter. The average annual wage increase for the public sector was 3.4%, compared to 3.2% in the second quarter. During the third quarter of 2007, average annual wage increases were affected by settlements in local government (3.1%), education and related services (3.8%), and transportation (3.1%) (Tables 1, 2 and 3).
In the third quarter of 2007, approximately 53% of all employees received average annual wage increases ranging from 3% to 3.9%, compared to 17% who received average annual wage increases ranging from 2% to 2.9%. Approximately 28% of private sector employees and 70% of public sector employees were covered by agreements with average annual wage increases ranging from 3% to 3.9%. Slightly over 10% of public sector employees, and 27% of private sector employees received average annual wage increases ranging from 2% to 2.9%.
Of the total number of employees, 62% were covered by three-year agreements. Slightly over half of public sector employees and 79% of private sector employees were covered by three-year agreements, compared to 32% of public sector employees covered by two-year agreements. Three-year agreements continue to be the most common in the manufacturing sector, covering all manufacturing employees, compared to 48% of non-manufacturing employees. All construction workers are covered by 36-month agreements (Table 4).
