Union-Negotiated Raises Start to Flutter, Led by Private Sector

The average first-year wage increase for unionized workers in the U.S. ticked downward to 3.3% after eight weeks at 3.4%, according to the most recent update of Bloomberg Law’s database of wage settlements.

The change was driven by a wage slowdown in the private sector, particularly in nonmanufacturing. That suggests the Covid-19 pandemic may finally be beginning to make itself felt in labor negotiations as a large cross-section of employers struggle to deal with the financial impact of a nationwide economic slowdown.

“The trajectory of wage raises granted by private-sector employers in union contracts appears to be following a path ...