Question

The labor relations term for a written clause in a labor agreement which adjusts wages in accordance with changes in the consumer price index at specified intervals during the contract's term is the:

a. Cost-of-living adjustment
b. Wage re-opener
c. Lump sum pay adjustments
d. Wage spread
e. Spillover effect

Answer 1

The labor relations term is the Cost-of-living adjustment

Step-by-step explanation:

The labor relations term for a written clause in a labor agreement which adjusts wages in accordance with changes in the consumer price index at specified intervals during the contract's term is the Cost-of-living adjustment (option a). This term refers to the practice of increasing wages to keep up with inflation. For example, if the Consumer Price Index (CPI) increases by 2%, wages would also increase by 2% to maintain the purchasing power of employees.