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Monday, April 15, 2013

Labor Stats and Facts: Employer Bargaining Objectives for 2013

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Bloomberg BNA has just released its Employer Bargaining Objectives survey report for 2013. The survey polled 110 employers whose contracts are set to expire this year, asking them about their plans and expectations for their upcoming negotiations. Here are some highlights.

In 2012, more employers expected to seek union concessions on wages than to make concessions themselves. That script flipped this year: some 64 percent said they would be open to making concessions in 2013, and 37 percent will seek pay concessions.

One in five employers (20 percent) said they anticipate giving first-year wage hikes of 3 percent or more in 2013—almost double 2012’s figure of 11 percent.

Interest in two-tier wage systems continues to wane. About one-quarter (26 percent) of employers said they plan to introduce or retain their two-tier system this year, down from 38 percent in 2010.

The vast majority of employers (89 percent) have no plans to bargain for lump-sum payments in their 2013 negotiations, up from 79 percent in 2010.

On the benefits side, just 12 percent of employers said they plan to improve pension benefits. Manufacturers, however, are more likely to boost pensions: 27 percent said they would consider increasing benefits in 2013.

Employers continue to seek reductions in health care costs. Four out of 10 said they will bargain to expand cost-sharing provisions (up slightly from last year), and 7 percent even said they plan to institute new cost-sharing provisions to their 2013 contracts.

Employers may be looking ahead to 2014, when waiting periods of more than 90 days for new-hire coverage under group health plans will be prohibited under the Affordable Care Act. Just 5 percent said they will seek waiting periods of more than three months until the 90-day maximum kicks in. Most employees will bargain for waiting periods of less than a month—or no waiting period at all.
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