Cost-of-living adjustment clauses (COLAs):
A)make the effect of inflation more harmful for some workers
B)apply only to younger workers
C)cause workers to experience significant changes in real income
D)apply only to nonunionized workers
E)minimize the impact of inflation for affected workers

Question

Quizplus · Accepted Answer

Cost-of-living adjustment clauses (COLAs) are designed to minimize the impact of inflation for workers. They typically result in regular, automatic adjustments to wages, salaries, and benefits based on changes in the cost of living. This helps ensure that workers maintain their purchasing power and real income over time, despite the effects of inflation.

Cost-Of-Living Adjustment Clauses (COLAs)