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LUMP-SUM PAY PROVISIONS -- 1991

 LUMP-SUM PAY PROVISIONS -- 1991
 WASHINGTON, March 5 /PRNewswire/ -- Lump-sum payments continued


to decline last year, falling to 13 percent of all non-construction contracts negotiated in 1991, down from 18 percent in 1990, 26 percent in 1989 and 36 percent in 1988.
 The analysis was based on 863 collective bargaining agreements covering more than 2 million workers and reported in Collective Bargaining Negotiations and Contracts during 1991.
 The 1991 median first-year wage increase under contracts paying lump sums was 3 percent or 30.3 cents an hour. Agreements without lump sums provided a first-year median increase of 4 percent, or 45.1 cents an hour. Deferred median increases in contracts with lump sums were 2.4 percent in the second year and 2.9 percent in the third year. Contracts without lump sums called for deferred increases of 3.5 percent in the second year and 3.2 percent in the third year.
 The percentage of lump-sum payments found in manufacturing settlements declined in 1991 yet continued to outnumber those in non-manufacturing. One-time payments were found in 15 percent of manufacturing agreements negotiated in 1991, compared with 26 percent in 1990 and 36 percent in 1989. Lump sums in non-manufacturing rose over the previous year, appearing in 11 percent of contracts bargained in 1991, 8 percent in 1990 and 15 percent in 1989.
 The most common form of bonus was a flat dollar amount, appearing in 75 percent of first-year provisions. The 1991 flat sum average was $1,048 in the first year, compared with $1,038 in 1990. The second most popular bonus system was based on a formula calling for payment of a percentage of the previous year's pay and was found in 16 percent of first-year lump-sum provisions. The average lump-sum amount was 4.3 percent in the first year, compared with 4.5 percent in 1990.
 The percentage of employees paid lump-sum bonuses in contracts negotiated in the 1991 round of bargaining -- historically higher in manufacturing than in non-manufacturing -- was lower in the manufacturing sector than in non-manufacturing because of the large number of workers covered under the U.S. Postal Service agreement. The percentage of employees in manufacturing lump-sum contracts fell to 24 percent in 1991, from 65 percent in 1990; the percentage of workers in non-manufacturing lump-sum agreements rose to 58 percent in 1991, from 28 percent in 1990.
 Transportation equipment contracts accounted for 18 percent of all 1991 lump-sum agreements, followed by paper industry agreements with 11 percent, railroads with 7 percent, chemicals and primary metals each with 6 percent, subways and buses with 5 percent, and printing, fabricated metals, electrical machinery, wholesale and retail, and services each with 4 percent.
 Geographical breakdown shows the highest rate of lump-sum payments -- 33 percent -- was in the Rocky Mountain region, followed by 18 percent in the North Central states. The frequency of lump sums in other regions was: 13 percent in the Midwest; 11 percent in each the Southeast and Southwest; 10 percent in the West; 9 percent in the New England states; and 4 percent in the Mid-Atlantic region. One-time payments were found in 27 percent (up from 12 percent in 1990) of multistate agreements.
 Contract reports analyzed appeared in the Table of Current Contract Settlements in CBNC, a specialized information service published in Washington by the Bureau of National Affairs, Inc. Contract reports weight increases equally and cover 50 or more workers. Holidays, vacations, and other such bonuses were not included in the analysis. Public sector settlements also were excluded.
 NOTE: Information from CBNC's collective bargaining database is available. In addition to compilations of wage and benefit terms in contract settlements, the databank includes a bibliography of more than 4,000 contracts and analyses of patterns in a sample of 400 agreements. Reports customized to meet individual requirements can be prepared for a fee within 24 hours by calling BNA PLUS toll-free at 800-452-7773 nationwide or 202-452-4323 in Washington.
 -0- 3/5/92
 /CONTACT: Emily Pilk of the Bureau of National Affairs, 202-452-4985/ CO: Bureau of National Affairs, Inc. ST: District of Columbia IN: SU:


TW-SB -- DC006 -- 5324 03/05/92 09:37 EST
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Date:Mar 5, 1992
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