Instead of a wage increase,members of a police union agreed to keep the same pay in exchange for a 20-year retirement program.What is this an exmaple of?

Question

Quizplus · Accepted Answer

This scenario is an example of both fringe benefits and compensating wage differential. Fringe benefits refer to additional benefits provided to employees on top of their regular wages, such as retirement programs. A compensating wage differential is additional pay or benefits provided to employees to compensate for undesirable aspects of a job, in this case, the lack of a wage increase is compensated by the retirement program.

Instead of a Wage Increase,members of a Police Union Agreed