This study of wage bargaining in the aerospace industry focuses particularly on lump sum bonuses, one-time cash disbursements that generally accompany lower increases in the base wage than were formerly standard. Although such bonuses, which appeared in aerospace companies before they appeared in other large manufacturing industries, were viewed as a union concession, they persisted into the 1989 bargaining round despite a sharp upturn in the fortunes of the most prominent aerospace company. The author regards that fact, as well as the weakening of both inter- and intra-industry pattern bargaining, as support for the view that a significant shift in union wage determination occurred in the 1980s. He argues, however, based on interviews with managers, union officials, and workers, that consensus has not yet been achieved on the meaning of this shift.
Union Wage Bargaining and the Incentive to Innovate