A back-loaded contract provides a lower wage adjustment in the first year with higher increases in the later years of a multiyear contract.

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A back-loaded contract is designed to provide a lower wage adjustment in the early years of the contract and higher increases in the later years. This approach is often used to help manage costs in the short term while still providing competitive compensation to employees over the longer term.

A Back-Loaded Contract Provides a Lower Wage Adjustment in the First