Wage rule formation in the aerospace industry.

Industrial and Labor Relations Review, April, 1992 by Erickson, Christopher L.

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

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