A 10 percent three-year wage increase is provided as a 2 percent increase in the first year, 3 percent in the second year, and 5 percent in the third year. This is an example of a ________ contract.
A) falling piece rate
B) Scanlon plan
C) back-loaded
D) wage reopener

Question

Quizplus · Accepted Answer

A back-loaded contract is one in which the largest wage increases occur in the later years of the contract period. In this scenario, the 5 percent increase in the third year is larger than the 2 percent and 3 percent increases in the first two years, making it a back-loaded contract.

A 10 Percent Three-Year Wage Increase Is Provided as a 2