Employer

Employer Bargaining
Bargaining
Objectives
Objectives 2019
2018
Survey
Survey Analysis,
Analysis, Trends, and Insights
Trends, and Insights for
for
Labor-Management Negotiations
Labor-Management Negotiations
 Copyright 2019
The Bureau of National Affairs, Inc.

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ISBN 978-1-63359-303-9
ISSN 1097-9239

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the American Bar Association and a Committee of Publishers and Associations.

For inquiries about purchasing a subscription to Bloomberg

Law, please contact:
Molly Huie, Team Lead, Data Analysis and Surveys
(mhuie@bloomberglaw.com)

姝 2019 The Bureau of National Affairs, Inc.

s Contents

Acknowledgements ................................................................................................................... 4

About the Authors ..................................................................................................................... 5

Overview Infographic ................................................................................................................ 6

Executive Summary ................................................................................................................... 7

Study Design and Demographics ............................................................................................. 10

Section 1: Bargaining Outlook and General Plans ................................................................ 14

Financial Outlook .................................................................................................................. 15

Bargaining Confidence .......................................................................................................... 15

Contract Length ....................................................................................................................... 15

Trade-Offs in Contract Negotiations ......................................................................................... 16
Pattern Settlements ................................................................................................................ 17
Lockouts and Striker Replacements ......................................................................................... 17
Withdrawal of Recognition ....................................................................................................... 18

Janus v. AFSCME Supreme Court Decision ............................................................................. 18

Section 2: Wage Adjustments and Other Pay Provisions ........................................................... 20

Wage Adjustments .................................................................................................................. 21
Lump-Sum Payments ............................................................................................................... 22
Cost-of-Living Adjustments ...................................................................................................... 22
Two-Tier Compensation Systems .............................................................................................. 23
Incentive Pay and Variable Pay Systems .................................................................................... 24

Section 3: Health-Care and Other Insurance Benefits ............................................................... 26

Health Benefits ........................................................................................................................ 27
Life, Disability, Sickness, and Accident Insurance ...................................................................... 27
Types of Health-Care Plans Offered .......................................................................................... 28

Health-Care Cost-Sharing Provisions ........................................................................................ 28

Health-Care Cost-Containment Provisions ............................................................................... 30

Health-Care Coverage Waiting Periods ................................................................................... 31

2
姝 2019 The Bureau of National Affairs, Inc.
Section 4: Pension and Retirement Plans .................................................................................. 32
Pension and Retirement Plans ................................................................................................ 33
Traditional Defined Benefit Pension Plans ................................................................................ 33
Tax-Deferred Retirement Savings Plans ................................................................................... 35
Defined Contribution Plans .................................................................................................... 36
Cash Balance Pension Plans ................................................................................................. 37

Multiemployer Pension Plans ...................................................................................................... 37

Section 5: Paid Leave and Other Benefits .............................................................................. 38
Paid Leave Provisions ............................................................................................................. 39

Other Services and Benefits ................................................................................................... 40

Section 6: Job Security .......................................................................................................... 42
Job Security Provisions ........................................................................................................... 43
Temporary and Contingent Workers ......................................................................................... 44

3
姝 2019 The Bureau of National Affairs, Inc.
s Acknowledgements

We wish to extend our heartfelt thanks to the many labor relations professionals who
participated in the 2019 Employer Bargaining Objectives Survey. This report would not have
been possible without their willingness to complete the survey questionnaire and offer their
insight and perspectives. We are most grateful for their participation.

We are deeply indebted to James Gleason of Bloomberg Law for his diligent and
professional work ensuring the survey was successfully distributed via U.S. mail.

We would also like to thank the Federal Mediation and Conciliation Service (FMCS) and
Michael Bartlett, Deputy General Counsel at FMCS, in particular, for their essential work in
providing us the information on expiring labor contracts used to collect responses for this
survey.

4 姝 2019 The Bureau of National Affairs, Inc.

s About the Authors

The following individuals contributed to the study design, data collection, analysis, and writing
of this report.

Molly K. Huie
Team Lead, Data Analysis and Surveys
Ms. Huie provided analytical direction and project oversight as well as editorial review of the
final report.

Andrew J. Hellwege
Survey Research Analyst
Mr. Hellwege served as the lead analyst and writer for the report and oversaw the data
collection effort.

Robert A. Combs
Legal Analyst
Mr. Combs conducted analyses of comparison data from Bloomberg Law's database of wage
settlements and library of collective bargaining agreements.

John A. Irons
Data Visualization Manager
Mr. Irons designed the infographics and cover pages for the report.

5 姝 2019 The Bureau of National Affairs, Inc.

 Employer Bargaining
Objectives 2019
Employers’ bargaining Organizations’ financial
outlook is positive
confidence is high
Favorable 62%
Very or fairly confident: Break even 23%

97% Unfavorable 13%

Most employers will seek

three-year labor agreements
1 year 2%
2 years 5%
3 years 66%
4 years 11%
5 years or more 15%

Types of retirement plans in contracts include: 74%

Traditional defined benefit pension 53%
Tax-deferred retirement savings 46%
Most organizations
Defined contribution plan 24%
will seek first-year
pay raises between
2% to 3.9%

16%

6%
3%
1%

Decrease No Less 2% to 4% or
change than 2% 3.9% more
Near-universal benefits in contracts include:
HEALTH CARE PAID LEAVE

S M T W Th F Sa
X

Doctor visits Prescription Hospitalization Surgical Holidays Vacations

drugs
Executive Summary
Study Design and
Demographics






 Employer Bargaining Objectives 2019
Profile of Participating Employers

Alaska
Geographic Region
5%

7%
1%
20% 21%
36% District of
Columbia

5%
7% Puerto Rico

Hawaii

Note: Contracts could cover employees

in more than one state or region.

Industry Sector
Manufacturing
Workforce Size
34%
Fewer than 250 35%
250-499 10%

66%
500-999 10%
1,000-2,499 12%
Nonmanufacturing 2,500 or more 22%
No response 11%
Size of Bargaining Unit
Large (1,000 or No response
more employees)
2%
12% Number of Labor Contracts
Employers Will Negotiate in 2019
One 53%
More than one 47%

Small (Fewer
86%
than 1,000 employees)
Section 1: Bargaining
Outlook and General
Plans
Section 2: Wage
Adjustments and Other
Pay Provisions
Section 3: Health-Care
and Other Insurance
Benefits
Section 4: Pension and
Retirement Plans
Section 5: Paid Leave
and Other Benefits
Section 6: Job Security
About Bloomberg Law
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© 2019 The Bureau of National Affairs, Inc.