Question

Typically the ________ clause in a union contract is tied to the u.s. bureau of labor statistics' consumer price index (cpi).

Answer 1

The cost of living adjustment (COLA) clause is linked to the CPI.

Answer 2

The correct answer is the Cost-of-Living-Adjustment clause.

Step-by-step explanation:

To begin with, the Cost-of-Living-Adjustment clause or COLA is the name that receives a clause in an union contract that allows increases in wages of the workers at specified intervals during the entire life that the contract takes place. Moreover, the reason why this clause is typically related to the Consumer Price Index or CPI is because those increases that the wages experience are measured by the CPI regarding the increase in the cost of living in the economy.