Bargained-For Union Wage Hikes Lower as Pandemic Grip Tightens

Union wage hikes were down nearly 1 percentage point at the start of 2021 as the coronavirus pandemic continued to squeeze businesses, according to the latest update to Bloomberg Law’s database of labor wage settlements.

The numbers suggest organized labor is being forced to cede pay increases at the bargaining table as the first anniversary of the pandemic nears. The average first-year wage increase was 2.7% as of Feb. 11, well below the average of 3.6% at the same time last year.

Raises were lower across the board, with private-sector unions negotiating wage increases of 3.3%, down from 4.5% for ...