Major Unions and Collectively Bargained Fringe Benefits

By Kemp, Donna R. | Public Personnel Management, Winter 1989 | Go to article overview

Major Unions and Collectively Bargained Fringe Benefits


Kemp, Donna R., Public Personnel Management


Major Unions and Collectively Bargained Fringe Benefits

Fringe benefits are a growing part of the compensation package. Unions and employee associations have played a significant role in the development of fringe benefits. A survey of major unions and employee associations indicates of the new fringe benefits dental coverage, vision coverage, employee assistance programs, maternity leave, and alternative work schedules are the most prevalent in current contracts. Sabbatical leaves are most prevalent as a new benefit in current negotiations, and child care, eldercare, and legal coverage are the most likely new fringes to be negotiated in the future. The standard benefit areas of health and pensions are presently the fringe benefit issues most involved in retrieval brgaining. They are also perceived as both currently and over the next ten years as the most important fringe benefit issues in collective bargaining.

Fringe benefits have been a growing part of the compensation package. In 1930, benefits accounted for only three percent of total compensation. There was little change by 1942 when nonsalary compensation of state and local government employees was 4.3 percent of total compensation, compared to 3.9 percent in the private sector (U.S. Dept. of Commerce, 1948). By 1972 nonsalary compensation was on the rise representing 10.2 percent of total compensation for state and local government employees and 11.5 percent for private sector employees (U.S. Dept. of Commerce, 1973). By 1982, total employee benefits had risen to a substantial 36.7 percent of payroll with wide variations across employers, ranging from 18 percent to 65 percent (Chamber of Commerce, 1982).

Unions and employee associations have played a significant role in fringe benefits, directly through collective bargaining and indirectly by organizations seeking to create attractive work situations to prevent unionization. On the average, unionized firms pay a higher proportion of fringe benefits within total compensation than nonunionized firms. One study indicated that union impact is 17 percent greater on fringes than monetary pay (Freeman, 1981). Another study indicated that the union to nonunion hourly wage differential is between 10 percent and 20 percent while the union to nonunion fringe benefit differential is between 20 percent and 30 percent (Freeman and Medoff, 1980). Work on the effect of unions on pensions and health insurance has found the average union effect to be an increase of 24 percent for pension expenditure and 46 percent for insurance expenditure (Solnik, 1978).

In recent years retrieval bargaining, involving removing through negotiations wages and/or benefits, has been occurring in more negotiations. Some employee groups have succesfully defeated organizational attempts to rescind benefits. For example, the Chicago Teachers Union defeated an attempt by the school board to reduce medical and dental benefits by $17.2 million. There is a negative environment for many negotiations as a result of organizations facing budgetary reductions or increasing costs of some benefits such as health insurance. However, at the same time negotiations may be getting tougher, there is a steady movement to expand the range of fringe benefits. To the list of standard fringe benefits such as pensions, life insurance, and health insurance there are rapidly expanding benefits such as dental coverage and vision coverage. In addition, other benefits being sought are hearing coverage; legal coverage; financial counseling or planning; employee assistance programs; wellness programs; sabbatical leaves; alternative work schedules including flexitime, compressed work weeks, job sharing, and part time positions; maternity and paternity leaves; child care and elder care; and commuting assistance including van pools and transit fare reductions.

While statistics are collected on the presence of the more standard fringe benefits in collective bargaining agreements, information is lacking about many of the newer benefits. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Major Unions and Collectively Bargained Fringe Benefits
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.