An escalator clause in a labor agreement ________.
A) guarantees annual wage increases
B) widens the scope of the contract
C) compensates for cost of living increases
D) protects management's authority

Question

Quizplus · Accepted Answer

C)The base rates to be paid each year of the contract for each job are included in the compensation section of the labor agreement.At times,unions are able to obtain a cost-of-living allowance (COLA),or escalator clause,in the contract in order to protect the purchasing power of employees' earnings.

An Escalator Clause in a Labor Agreement ________