Wage change manual

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OPM Wage Grade Survey Data Collection Guide

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Wage change manual

  1. 1. WAGE CHANGE SURVEYSDATA COLLECTION GUIDE
  2. 2. INTRODUCTIONWage surveys are conducted on a two-year cycle. The first year, a full-scale survey is conducted. Firmsare contacted by a personal visit, job matches are established, and populations and rates of pay formatching jobs are obtained. The second year of the cycle, a wage change survey is conducted. In a wagechange survey, wage adjustment data are collected by telephone from those companies that provideduseable job matches on the full-scale survey (no other companies are contacted). Only dollar figures areupdated; job matches and job populations are not changed on wage change surveys.Your job on this wage change survey is to telephone the companies assigned to your team and obtain andrecord wage adjustment information for jobs matched on the full-scale survey. You will update hourlywage rates, Cost of Living Allowance (COLA) adjustments, and lump sum payments made in lieu ofgeneral increases. All data will be collected by telephone unless a company will only provide wageadjustment information during a personal visit.No data may be collected until the DCPMS Wage and Salary Division officially orders the survey tobegin. The LWSC chairperson will give the data collection teams the order date. 1
  3. 3. MATERIALS NEEDEDBefore you begin, you must have several items. These include: ⇒ full scale survey forms for assigned companies, ⇒ Wage Change Worksheets for assigned companies, ⇒ labor contracts (or copied portions of contracts) or rate sheets for assigned companies which were obtained during the full scale survey, ⇒ your Data Collector Handbook, ⇒ pen and paper, ⇒ telephones and authorization for any necessary long distance calls. 2
  4. 4. CHANGES TO REPORTGeneral Adjustment: A general adjustment is an adjustment to a job’s basic rate of pay. Generaladjustments come in many forms and vary with the policies and practices of establishments. A generaladjustment may be a set amount (cents or percent) that everyone receives, or amounts may vary betweengroups of workers or individuals. The adjustment may be an increase or a decrease. Adjustment ofcompany pay may take place at a set time each year, at different times during the year, or irregularly.Merit Adjustment: A merit adjustment is a type of general adjustment which is based on employeeperformance and separate from normal progression through a rate range with established steps.NOTE: We do not report step increases or decreases on a wage change survey.Cost of Living Allowance (COLA): For wage change survey purposes, a COLA is a pay adjustment tieddirectly to the Consumer Price Index (CPI) with a specific formula. Some company officials will refer toany increases to basic pay as “Cost of Living” adjustments; however, if the amount is not determined byuse of a set formula linking the amount to the CPI, we will record the change as a general adjustment.COLA amounts may be either increases or decreases.Lump Sum: Sometimes companies will grant lump sum payments to employees rather than increasingtheir hourly rate of pay. A payment clearly identified by the company as a lump sum payment made inlieu of a general increase would be converted to a cents per hour figure and used in the calculation oftrend lines on which the new pay schedule will be based. To qualify as a lump sum, however, a paymentmust be granted in lieu of a general increase.Granted Adjustment: Any adjustment which has taken effect on or before the day you call the company.A granted adjustment could be a general increase or decrease, a COLA adjustment, or a lump sum asdescribed above. You are to report all granted adjustments not reported on the full-scale survey.Pending Adjustment: Any adjustment which has not yet taken effect but will be made before the effectivedate of our survey. A pending adjustment could be a general increase or decrease, a COLA adjustment,or a lump sum as described above. If an adjustment has not been paid as of the date you call thecompany, you must report it as pending. Do this even if the company official assures you that it will bepaid. 3
  5. 5. CHANGES NOT TO REPORT You should note that there are some types of pay that you must avoid on this survey. Specifically you must not report: ⇒ step increases (movements within an established rate range), ⇒ various types of add-on pay such as shift differential; overtime; environmental pay such as for dangerous work, hot work, cold work, high work, etc. (you can avoid inadvertently including such elements by stressing to company officials that we wish to update straight time base rates of pay). ⇒ bonuses which are not considered lump sums in lieu of general wage adjustments.Note on Bonuses: Bonuses not considered lump sums (i.e. not paid in lieu of general increases) are sometimes used on full- scale surveys. One of the criteria for use of these bonuses is that they be paid consistently from year to year. Because bonuses used on full-scale surveys are assumed to be consistent pay elements, they are used again in the calculation of pay schedules resulting from wage change surveys. Since any bonuses used on the last full-scale survey are already in the DCPMS Wage and Salary Division computer system, you need not record them on the Wage Change Worksheets. Bonuses are updated only on full-scale surveys. Note on Job Matching and Number of Employees Matched: The rules under which wage change surveys are conducted require that job matching and populations of matched jobs remain as they were on the full-scale survey. Therefore: ⇒ We cannot add or delete jobs. ⇒ We cannot change the number of employees matched. ⇒ We do not normally discuss job descriptions with company officials on wage change surveys. 4
  6. 6. WORKING WITH FULL SCALE DATAThe purpose of the wage change survey is to update wage data obtained on the full-scale survey.To do this, you need to know what to update.Full-scale data is found:1. pre-printed on the wage change worksheet, the form you will use to record data this survey2. on the full-scale survey establishment reports. full scalePages 6 - 10 will explain how to determine what data was obtained last survey and what you need 11to update.Examples of wage change and full-scale forms are provided. 5
  7. 7. FULL SCALE DATA PRE-PRINTED ON THE WAGE CHANGE WORKSHEET The form below is the Wage Change Worksheet. You will use this form to record and explain the data you collect on this survey. Wage Change Worksheets are produced for every company that provided job matches and useable wage data on the full-scale survey. Establishment codes and name. Establishment code is the same one that was assigned to the establishment on the full-scale survey. FEDERAL WAGE SYSTEM - WAGE CHANGE WORKSHEET1. AREA CODE AND WAGE AREA 2. ESTABLISHMENT CODE AND NAME 3. WEIGHT107 DAYTON, OHIO 001 WIDGET MANUFACTURING CO. 01 PART A - FULL SCALE SURVEY DATA PART B - WAGE CHANGE SURVEY DATA4. SURVEY ORDERED 5. EFFECTIVE DATE 6. ACTION CODE 7. COLLECT DATA EFFECTIVE THRU 8. DATE THIS CONTACT 23 October 2003 17 August 2002 24 October 2002 9. AMOUNT 1 R 10. AMOUNT 2 R 11 AMOUNT 3 R 12. AMOUNT 4 R 13. AMOUNT 5 RJOB SEQ JOB TITLE DATE E DATE E DATE E DATE E DATE ENR. NR. NR WAGE COLA A A A A A EMPL RATE S S S S S O O O O O N N N N N002 01 JANITOR 8 11.742                    007 01 WAREHOUSEMAN 16 12.912                    010 01 TRUCKDRIVER (MEDIUM) 7 12.912                    014 01 CARPENTER 1 14.667                    015 01 ELECTRICIAN 46 15.252                    018 01 PIPEFITTER 2 14.667                    019 01 WELDER 62 14.862                                                             l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l14. REMARKS (IF ADDITIONAL SPACE IS REQUIRED< USE REVERSE SIDE) M = GUARANTEED MINIMUM RATE15. SIGNATURE 16. SIGNATURE 17. PAGE 1 18. GENERATED OF 27 02/08/02 PAGES 27 11:28 Survey job numbers Populations and pay rates of and titles of jobs jobs matched on the full- matched on the full- scale survey. These will not scale survey. be changed this survey. 6
  8. 8. FEDERAL WAGE SYSTEM - ESTABLISHMENT INFORMATION1. ESTABLISHMENT NAME AND ADDRESS (Include Apartment 2. WAGE AREA or Suite Number and 9-digit ZIP Code) ACE Manufacturing Co. Dayton, Ohio Furniture Division 3. DATE OF CONTACT 4. TELEPHONE NUMBER (Include Area Code 1234 Elm St. and Extension) Kettering, OH 45409-4306 12 Jan 2002 (513) 296-62915. NAME AND TITLE OF PERSON(S) INTERVIEWED 6. PRODUCT OR SERVICE OF ESTABLISHMENT a. MAJOR INDUSTRY Ms. Judith Anderson Manufacturing Personnel Director b. SPECIFIC PRODUCTS OR SERVICES Upholstered wood household furniture7. AREA CODE 8. ESTABLISHMENT CODE 9. STANDARD INDUSTRIAL 10. ESTABLISHMENT WEIGHT CLASSIFICATION (SIC) CODE 107 021 2512 0311. TOTAL NUMBER 12. TOTAL NUMBER BLUE- 13. OVERTIME PAY PROVISIONS EMPLOYEES IN COLLAR EMPLOYEES DAILY WEEKLY SUNDAY HOLIDAY ESTABLISHMENT RATE HOURS RATE HOURS RATE RATE 250 198 1.5 8.0 1.5 40.0 2.0 None14. NUMBER OF HOURS IN 15. MONTH GENERAL WAGE ADJUSTMENTS 16. CONTRACT OBTAINED (X one) 17. NON-PAR CODE NORMAL WORKWEEK ARE NORMALLY EFFECTIVE YES 99 = NO SET MONTH NO 40.0 99 1 = JANUARY RATE SHEET ETC.18. GENERAL WAGE ADJUSTMENTS 19. ADDITIONAL PAY ELEMENTS (Explain in Remarks) c. INCREASE/ d. INCLUDED IN None Nonea. DATE b. AMOUNT DECREASE RATES (X one) BONUS LUMP SUM INCENTIVE (Enter I or D) YES NO 20. COST OF LIVING ALLOWANCE (COLA) a. COLA FORMULA 1 Mar 02 .350 I X .3 = 1 ⊄ 1 Mar 03 .350 I X b. BASE PERIOD d. PAY ON e. USING CONSUMER ( ) 1 967 = 100 PRICE INDEX (CPI) FOR ( x ) 1982-84 = 100 1 Feb Dec & Sep c. INDEX 1 May Mar &Mar & Dec Dec ( ) CPI-U 1 Aug Jun & Mar ( x ) CPI-W 1 Nov Sep & Jun21. COLA TIED DIRECTLY TO CPI b. DATE AND AMOUNT OF ADJUSTMENTS c. FOLD-IN d. CARRY-YES a. TOTAL AMOUNT DATE OVER X BEING PAID 1 May 02 1 Aug 02 1 Nov 02 1 Feb 03NO AMOUNT .520 .100 .110 .060 ?22. REMARKS Item 19.a. All employees receive a $200 bonus each year; $200 / 2087 hours = .0958 = .096 per hour.23. PRINTED NAME AND SIGNATURE 24. PRINTED NAME AND SIGNATURE PAGE 1 OF 3 PAGES Tom Bailey To m Sue Taylor SueTaylor Bailey 7
  9. 9. ESTABLISHMENT INFORMATION FORMEvery company for any Wage Change Worksheets generated had a full-scale report written on it. Thisreport included an Establishment Information Form (EIF) and one or Wage Data Collection Forms(WDCF). The EIF contained general information on the company and its pay practices. The WDCFcontained wage information on matched jobs, including rate ranges and employees’ rates of pay withinthose ranges. For every company you contact on this survey, you should carefully review the full-scaledata before you phone the establishment. The preceding page and the next few pages provide anopportunity to practice review of full-scale data.The form on the preceding page is an EIF. This form provides information important to the wage changesurvey.You obtain from the EIF the name, title and phone number of the company official who provided the full-scale data. This is the person you should call on this survey. If this individual is no longer in the position,ask to speak with the person who took his/her place and record the name, title, and phone number of thenew contact in the Remarks section of the Wage Change Worksheet.You should make a note of the month the company normally grants wage increases by looking at item 15.This will give you an idea of when the firm may have had an adjustment. In our example, the code “99”is used. This means that there is no one established month during the year that the company adjusts baserates of pay.By looking at item 16 of the EIF, you will learn whether a contract or rate sheet was obtained on the full-scale survey. If a contract was obtained and is still current, the information regarding pay adjustmentsshould be noted for discussion with the company official. If the contract calls for a specific adjustment ona certain date and the company official tells you something different, you should discuss the situation withhim/her and explain the reason for the change in the Remarks section of the Wage Change Worksheet.If you are looking at a full scale report and see that item 17 is filled in, you may be looking at the wrongreport. This field should be filled in only if for some reason the establishment did not participate or didnot provide useable data.Item 18 of the EIF provides specific information on general wage adjustments. In the example, you cansee that ACE Manufacturing granted a 35 cents per hour increase to employees on March 1, 2002. Youcan also see that it was included in the rates on the full-scale survey, so you would not report it again thissurvey. 8
  10. 10. Item 18 also tells you whether we knew of any future adjustments planned by the company as of the fullscale. With the information you have on ACE Manufacturing, you would expect the company to report a35 cent increase effective 1 Mar 2003 (and you can also see it was not included in the full scale rates). Ifthe company reported anything different, you would investigate and explain.Item 19 provides information on bonuses lump sums, and incentive rates. In the example, item 19indicates a bonus was paid. Specific information on the bonus was recorded in Remarks. The bonus wasa $200 holiday bonus.Items 20-21 tell you that the company does pay a cost of living adjustment tied to the Consumer PriceIndex, so you will need to obtain COLA payments paid since the full scale. As of the full scale, the totalamount being paid was 52 cents (item 21.a.), and the adjustments reported were: 1 May 02, 10 cents; 1Aug 02, 11 cents; 1 Nov 02, 6 cents; and the next adjustment was due in February, but the amount wasunknown (item 21 a.). You would: 1. If a contract was obtained on the full-scale survey, review any COLA provisions it has. 2. Update the total amount being paid (item 21.a). Full-scale amount was 52 cents. You need to find out what it is now. 3. Obtain the adjustments paid since the full scale, starting with February, 2002 and ending with November, 2002.A more detailed discussion of COLA is provided below:Item 22 is the Remarks section. In this example, it contains only information on the bonus, but thissection can be very important. You should carefully read the Remarks section of the EIF before callingthe company. Here you will often discover facts which have a direct bearing on the wage change survey.You may learn, for instance, that a janitor is non-union and does not receive the same increases as otherjobs, or that the COLA only pertains to certain matched jobs, or that different matched jobs receivedifferent COLA adjustments. You may learn that different groups of employees receive adjustments atdifferent times during the year. Many pertinent facts are recorded in Remarks, and you must be aware ofthem.The next step is to review the Full Scale Wage Data Collection Form for ACE Manufacturing Company. 9
  11. 11. FEDERAL WAGE SYSTEM - WAGE DATA COLLECTION1. ESTABLISHMENT NAME 2. WAGE AREA 3. DATE OF CONTACT ACE Manufacturing Co. Dayton, OH 22 Jan 20024.a. ESTABLISHMENT JOB TITLE b. UNION AFFILIATION c. ESTABLISHMENT GRADE Lift Truck Driver UCA Local 12 None5. SURVEY JOB TITLE Forklift Operator6. AREA CODE 7. ESTABLISHMENT 8. JOB NUMBER 9. FORMAL 10. JOB RATE RANGE 11. NUMBER OF CODE RATE MINIMUM MAXIMUM ESTABLISHED RANGE STEP RATES YES NO 104 021 08 x 6.250 8.000 0412. ESTABLISHED 13. JOB MATCH 14. NUMBER OF 15. STRAIGHT TIME 16. GUARANTEED 17. INCENTIVE STEP RATES EMPLOYEES HOURLY RATE MINIMUM RATE 6.250 Y 1 6.250 7.000 Y 1 7.500 7.500 Y 1 8.000 8.000 Y = YES 18. COST OF LIVING 19. BONUS 20. LUMP SUM 21. JOB SUB- N = NO ALLOWANCE NUMBER (COLA) .096 Step increases TOTAL 0 .520 .096 every 6 mos.22. DESCRIPTION OF ESTABLISHMENT JOB Operate standard two prong forklifts with rated lifting capacity of less than 10,000 lbs. to unload maintenance supplies and raw materials from trucks, transport items to storage, move materials between production processes, and load finished products onto trucks.23. DO ABOVE RATES INCLUDE 24. REMARKS NO YES AMOUNTCOLA X 2.b. UCA = United Craftsmen AssociationBONUS XLUMP SUM X 19. 200/2087 = .0958 = .096 (holiday bonus).SHIFT PAY X XOTHER ADD-ONS(Explain) X23. PRINTED NAME AND SIGNATURE 24. PRINTED NAME AND SIGNATURE PAGE 3 OF 3 Tom Bailey To m Sue Taylor SueTaylor PAGES Bailey 10
  12. 12. THE WAGE DATA COLLECTION FORMThe first important item on the WDCF is the establishment job title. If it becomes necessary to discussindividual jobs with a company official, be sure to use the establishment job title rather than the surveyjob title. This will ensure that the company official knows which job you are asking about. For example,a company might have six different titles matching our Machine Tool Operator I. These six jobs may beat several different rates and may have received different adjustments at different times. Using thecompany job title would make it easier for you to obtain the correct information.Item 4.b., Union Affiliation, is also helpful. Some companies will have more than one union or a mixtureof union and nonunion jobs with different provisions for wage adjustments. Being able to tell thecompany official the union affiliation of the job you are trying to update will help you get the rightinformation.Item 4.c., Establishment Grade, will allow you to work more easily with companies that have a gradingsystem and different adjustments for different grades. Personnel official might ask you if you know thecompany grade of the job matched on the full scale.Item 10, Job Rate Range, can be helpful. If a company official is providing new individual rates andreports rates outside the rate range for the job, and the difference seems too large for wage adjustmentsto explain, you know to investigate.Item 20, Lump Sum, is for entry of the hourly equivalent of any lump sum paid to the job this survey. Ifa lump sum was paid as of the full scale, you will enter the difference between the item 20 figure and thehourly equivalent of any lump sum paid after the full scale and on or before the effective date of thissurvey.Item 24, Remarks, is important to review this survey because it may contain helpful information. Forexample, Remarks might state that a job is subject to different wage adjustments than the other matchedjobs. Calculations for conversion of lump sums to cents per hour figures are also commonly done inRemarks.Note on the Wage Data Collection Continuation Form (WDCCF): You will note that WDCF item 15can only accommodate three different rates for matched employees. When matched employees havemore than three different rates, a WDCCF is used to show the additional employees and their straighttime hourly rates (any bonus or lump sum information applicable to employees included on a WDCCFwould be included in item 19 or 20 of the WDCF it follows). Because WDCCF rate information isrecorded in the same manner as on the sample WDCF on the previous page, a sample WDCCF is notprovided in this handbook. 11
  13. 13. COLLECTING WAGE CHANGE DATATHE INTERVIEWWhen you call the company official, you: ⇒ Introduce yourself and explain which agency you represent. ⇒ Explain the purpose of your call. ⇒ Ask if the company has granted any general or Cost of Living wage adjustments in the past year (since the date of our last contact with the firm). Be careful to separate general and COLA adjustments; be sure to count as COLA only those adjustments which are linked directly to movement of the Consumer Price Index by a formula. ⇒ If the adjustment was not the same for all matched jobs, ask for the amount of change that occurred in each matched job. ⇒ If the company pays a COLA, ask about any fold-ins that occurred during the past year. Obtain the date and amount of any fold-ins and the amount carried over. ⇒ Ask if any general or COLA adjustments are pending between the date of your call and the “Collect Data Effective Through” date shown in Part B of the Wage Change Worksheet. If no adjustments are pending, state this in the Remarks section of the Wage Change Worksheet.During the interview, data provided by the company official should be checked against notes you havemade from information provided in the full-scale survey forms and the contract. Any differences shouldbe thoroughly discussed with the company official and the reasons documented on the Wage ChangeWorksheet. Noticing and resolving discrepancies during the call will minimize the number of callbacks tothe official.You should look for patterns in adjustments and question any that appear out of line For example, if onecompany job received a much larger increase than any other company job, you would investigate. Aspart of your investigation, you might inquire if the duties of the job have changed and the nature of anysuch changes. You may find that duties were added to the job, such as addition of leader, supervisory, orother higher level duties. Document the explanation in Remarks so that the situation can be reviewed andproperly handled. 12
  14. 14. PERCENTAGE ADJUSTMENTSIf a company official states that the firm paid a percentage adjustment, you should inquire if all matchedjobs received that exact amount or if the figure he/she gave you is an average. If all employees receivedthe same percentage, you will state this in Remarks. If different jobs received different percentages, youmust obtain and record the amount each job received.ADJUSTMENT VARIATION OF UNKNOWN AMOUNTSWhen different jobs receive different adjustments, you show the dates and amounts separately.Sometimes a company official might know the overall average but cannot provide the amount each jobreceived. In such cases, write down the average amount he/she gives you and ask for the minimum andmaximum amounts granted to blue-collar positions. Ask for the current rate range for each matched job(if updated in the last year) and record all information in the Remarks section of the Wage ChangeWorksheet. If the company does not have fixed rate ranges, obtain current rates for all matched jobs andput this information in Remarks.WEIGHTED AVERAGESSometimes a company will not be able to tell you, even in general terms, how much a job received. Inthese instances you should try to obtain a weighted average of rates that exist today.If a weighted average of all employees on the job was obtained at the time of the full-scale survey, thisfact will be stated on the Wage Data Collection Form. If you again obtain a weighted average on thewage change survey, all you need to do is subtract the lower amount from the higher amount to get theamount of change you will enter on the Wage Change Worksheet. The change may be either an increaseor a decrease.If a weighted average was reported on one survey but exact rates were obtained on the other, we construct a weightedaverage for the survey in which exact rates were obtained, subtract the lower average from the higher, and enter the result.The reported amount may be an increase or a decrease. 13
  15. 15. FEDERAL WAGE SYSTEM - WAGE CHANGE WORKSHEET1. AREA CODE AND WAGE AREA 2. ESTABLISHMENT CODE AND NAME 3. WEIGHT107 DAYTON, OHIO 001 WIDGET MANUFACTURING CO. 01 PART A - FULL SCALE SURVEY DATA PART B - WAGE CHANGE SURVEY DATA4. SURVEY ORDERED 5. EFFECTIVE DATE 6. ACTION CODE 7. COLLECT DATA EFFECTIVE THRU 8. DATE THIS CONTACT 23 October 2003 17 August 2002 24 October 2002 9. AMOUNT 1 R 10. AMOUNT 2 R 11 AMOUNT 3 R 12. AMOUNT 4 R 13. AMOUNT 5 RJOB SEQ JOB TITLE DATE E DATE E DATE E DATE E DATE ENR. NR. NR WAGE COLA A A A A A EMPL RATE S S S S S O O O O O N N N N N002 01 JANITOR 8 11.742                    007 01 WAREHOUSEMAN 16 12.912                    010 01 TRUCKDRIVER (MEDIUM) 7 12.912                    014 01 CARPENTER 1 14.667                    015 01 ELECTRICIAN 46 15.252                    018 01 PIPEFITTER 2 14.667                    019 01 WELDER 62 14.862                                                             l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l l  l l14. REMARKS (IF ADDITIONAL SPACE IS REQUIRED< USE REVERSE SIDE) M = GUARANTEED MINIMUM RATE15. SIGNATURE 16. SIGNATURE 17. PAGE 1 18. GENERATED OF 27 02/08/02 PAGES 27 11:28 14
  16. 16. COMPLETING THE WAGE CHANGE SURVEY FORMWage change data collection forms have been prepared for each establishment that participated andprovided useable job matches in the full-scale survey. An example of the Wage Change Worksheet islocated on the preceding page. The form is divided into two parts:PART A - This portion of the form contains data obtained on the full-scale survey.a. Job Number and Sequence Number: This will appear as a five-digit number on the Wage ChangeWorksheet.(1) The first three digits represent the job number corresponding to the survey job matched on the full-scale survey. For example, job 001 is the Janitor (Light) survey job.(2) The last two digits represent the sequence number assigned by the computer to each individual ratefor each matched survey job. If, for example, two rates were reported for job 001, the first rate wouldhave a sequence number of 01, the second 02, etc. The sequence number starts at 01 for each differentsurvey job.For wage change survey purposes, the survey job number and sequence number will always appeartogether.b. Job Title: The title of our survey job appears in this item. The space above the survey job title may beused for manually entering the establishment job titles. Data collectors are to use establishment job titlesto discuss jobs with company officials.c. Number of Employees: This figure is the number of employees reported at each rate for each surveyjob in the full-scale survey. This number will not be changed on the wage change survey.d. Wage Rate: Unless otherwise specified, the wage rate is the straight time hourly rate reported in thefull-scale survey. This wage rate does not normally include any Cost of Living Allowance (COLA) tieddirectly to the Consumer Price Index (CPI) or any bonus, since these amounts are normally reporterseparately in the full scale survey.When an area qualifies for the use of incentive data and incentive rates are being used, the wage rate forjobs paid on an incentive basis will be the guaranteed minimum rate and will be followed by the letter“M” to indicate that the rate is a minimum. This is done so that we and the company official havecommon ground on which to discuss changes to incentive rates. Even though the minimum rate is shownon the Wage Change Data Collection Form, the annual incentive rate was used and will be used again tocompute the trend lines. 15
  17. 17. e. COLA: This item shows the amount of the Cost of Living Allowance (COLA) tied directly to theConsumer Price Index (CPI) reported in the full scale survey.NOTE: Since any bonus data used in the full scale survey will automatically be used again computing thewage change trend line, the bonus amount does not appear on the Wage Change Worksheet. The onlyexception to this procedure is in the calculation on lump sum payments in lieu of general increases. Suchpayments are currently coded as bonuses and can be changed during wage change surveys. See Table 4for further discussion on processing lump sum payments.PART B - This portion of the form is where you will record the wage change data you collect on thissurvey.a. Action Code (Item 6): Refer to Table 1 and enter the proper code.b. Collect Data Effective Thru (Item 7): Collect wage change data effective on or before the normaleffective date of the new schedule. The normal effective date will be pre-printed on the form.c. Date This Contact (Item 8): Enter the date you contact the establishment to obtain wage change data.This item must be completed for each establishment.d. Amount 1, 2, 3, 4, and 5 (Items 9-13): Enter the dates amounts and reasons for all changes since thelast survey. Dates should include the day, month and year, in that order. See tables 2, 3, and 4 forinstructions for completing these items.Information on the following pages will explain more about the data we seek and how to record it on theWage Change Data Collection Form.REMARKS (ITEM 14): The space below parts A and B is provided for remarks such as changes ofcompany officials, explanation of data entries, and information regarding current rates of pay or totalCOLA being paid. Remarks may be continued on the reverse of the form.SIGNATURE BLOCKS (ITEMS 15 and 16): Both data collectors or their respective LWSC counterparts should sign eachpage of all Wage Change Worksheets for assigned establishments. 16
  18. 18. TABLE 1 ACTION CODEACTION CODE STANDS FOR: USE WHEN: A ACROSS THE BOARD All matched employees received the SAME amount of change (increase or decrease, general or COLA). Go to table 2 and enter the data for ONLY the FIRST JOB listed on the form. N NOT ACROSS THE BOARD MATCHED employees received DIFFERENT amounts of change (increase or decrease, general or COLA). Go to Table 2 and enter the data for EACH JOB listed on the form. If a job did not receive a change leave line(s) blank. R REFUSAL The establishment refuses to participate or refuses to provide useable information. Give the reason for the refusal in Remarks. S STRIKE The establishment is on strike or in a lock out situation. Explain the situation in Remarks and give dates of anticipated settlement and contract ratification. T TERMINATED OPERATIONS The establishment is out of business or has IN THE AREA moved out of the area. Explain the circumstances in Remarks. Z ZERO CHANGES There have been no changes (increases or decreases) to rates or COLA reported on the full-scale survey. 17
  19. 19. INSTRUCTIONS FOR RECORDING DATA1. Enter changes in chronological order.2. Enter cents per hour changes to three decimal places. The amount blocks have four vertical lines to separate each digit:  0  3  5 The longer vertical line in the amount block is the dividing line for dollars and cents. It represents a decimal point. Entries are done to three decimal places. The amount entered here is 3.5 cents.  3  0  0 Amount entered is 30 cents.3. Enter percentage changes to two decimal places. Single digit percentages are recorded by spaces to the right of the decimal point. and the number in the spaces to the right. Double-digit percentages are recorded by putting the “P” in the space farthest to the left, the first digit in the space just left of the decimal point. P  03  5  0 Amount entered is 3.5 %. P  1 0  0  0 Amount entered is 10%.4. Decreases are reported by inserting a hyphen over the number in the third decimal place.  3  5  0 A 35-cent decrease. P 03  5  0 A 3.5% decrease.NOTE: Percentage lump sums reported by company officials must be converted to cents per hourfigures. The data processing system does not accept input of percentage lump sums. Example: A company has one janitor at the rate of $7.00 per hour. The company official reports that the employee was given a 3% lump sum in lieu of a general wage adjustment. You would record .210 in the amount block (7.00 X 3%). 18
  20. 20. TABLE 2 COMPLETING DATE, AMOUNT, AND REASON SITUATION ENTER INFORMATION DATE AMOUNT REASON A general adjustment has been granted. Enter the date of Enter the amount of GOR the adjustment. the adjustment. A “Cost of Living Allowance” not tied to the Consumer Price Index (CPI) has been granted.ORA general increase based on merit was paid(not a step increase).A “Cost of Living Allowance” tied directly Enter the date of Enter the amount of Cto the Consumer Price Index (CPI) has the adjustment. the adjustment.been granted.A general adjustment is pending.* Enter the Enter the anticipated POR anticipated date of amount of theA COLA adjustment is pending.* the adjustment. adjustment, if known, otherwise,*For wage change purposes, a pending IF the date is leave blank.adjustment is one that will be paid after unknown, enter anthe date you call the company but before asterisk and IF the adjustmentthe pay schedule effective date.. explain in will be a decrease, Remarks. put a hyphen (-)NOTE: If an adjustment is pending for over the number inone or more matched jobs and no other the third decimaladjustments have been paid, use the Z place.action code. No general or COLA adjustments or lump Leave blank Leave blank Leave blanksums in lieu of a general increase were State in Remarks that no adjustments were granted and that nonegranted, and none are pending prior to the are pending prior to the pay schedule effective date.pay schedule effective date.An establishment job is vacant. Leave blank Leave blank D OR Explain the situation and state in remarks the amount the jobAn establishment job has been abolished. would have received. 19
  21. 21. COST OF LIVING ALLOWANCE (COLA)For survey purposes, the term Cost of Living Allowance (COLA) refers to various methods of basingperiodic wage adjustments on the Consumer Price Index (CPI). When the CPI increases by a specificamount, additional COLA may be paid. When the CPI decreases, the COLA being paid may be reduced.When collecting wage data, you must be careful to distinguish between general adjustments and COLAadjustments. Companies may call any general increases “cost of living adjustments”, but if the adjustmentis not linked to the CPI with a specific formula, it is not a COLA for wage change purposes and will berecorded as a general increase.Understanding the nature of COLA adjustments will help you correctly record such adjustments. COLAis usually paid separately from other adjustments. Private firms normally treat it as an “add-on” ratherthan part of the basic hourly rate paid to wage employees. Even if the COLA is treated as part of anemployee’s basic pay for purposes of overtime or vacation benefits, it probably is adjusted separatelyfrom the basic hourly rate.In discussion of COLA two terms occur: “fold-in” and “carry-over”. A company may periodically putthe COLA being paid into the base rate. When this is done, the cola is said to be folded in to the rates.Depending on its policies, a company may fold in all or part of the COLA at a given time. When onlypart of a COLA is folded into the base rates and the remainder continues to be treated as COLA, it is saidto be carried over as COLA. Example: A company is paying 50 cents COLA and decides to fold in 40 cents of it. When the fold-in occurs, the COLA being paid would be reduced 40 cents (the amount folded in) and the basic hourly rate would be increased by that amount. The 10 cents not folded in would be carried over as COLA and would be subject to any increase or decreases triggered by the CPI per the company’s COLA formula.See Table 3 for instructions on how to record COLA adjustments on the Wage ChangeWorksheet.The following page lists questions you will need to ask company officials about COLA payments. 20
  22. 22. COLA QUESTIONS 20. COST OF LIVING ALLOWANCE (COLA) a. COLA FORMULA .3 = 1 cent b. BASE d. PAY ON e. USING CONSUMER PERIOD PRICE INDEX (CPI) ( ) 1 967 = FOR 100 1 Feb Dec & Sep c. INDEX 1 May Mar &Mar & Dec Dec ( ) CPI-U 1 Aug Jun & Mar ( x ) CPI-W 1 Nov Sep & Jun1. Does your company pay cost of living adjustments that are tied to the Consumer Price Index by a formula?2. What is the total COLA being paid?3. What were the dates and amounts of COLA adjustments since [date of last COLA adjustment reported on the full-scale survey]?4. Was any COLA diverted to benefits? If so, how much and when?5. Was any COLA folded in during the past year? If so, how much and when?6. Which matched jobs received the COLA adjustments? (Do some jobs receive a different COLA or no COLA?)7. Obtain the COLA formula if it is not shown either on the full scale EIF or in a labor agreement we have on file for the company.8. Which base period is used, 1967 = 100 or 1982-84 = 100?9. Which index is used, CPI -U or CPI - W? (CPI-U = All Urban Consumers;CPI - W = Revised Urban Wage Earners and Clerical Workers)10. How much of a movement in the CPI must occur to trigger a one-cent COLA adjustment? For example, the amount of COLA being paid might change one cent for each .3 of a point change in the CPI.11. On which month’s CPI are the changes for each adjustment based? For example, COLA could be adjusted in July based on the CPI for the months of February and May. 21
  23. 23. TABLE 3 RECORDING COST OF LIVING ALLOWANCE (COLA) CHANGESNOTE: To be used as COLA, an adjustment must be tied by a formula to the Consumer Price Index (CPI) SITUATION IN PART B: IN REMARKSOne or more COLA adjustments 1. Report the date and amount of Report the total amount of COLAwere made since the full-scale each COLA adjustment made currently being paid.survey. since the full-scale survey. 2. Record adjustments only, not total being paid. Record totals being paid in the Remarks block, not in the amount blocks. TREATMENT OF FOLD-IN AND CARRY-OVER SITUATION IN PART B: IN REMARKSNo COLA was folded into the base See below State that no fold-in occurred sincerates. the last full-scale survey.All COLA was folded into the base Regular COLA adjustments are 1. Give the date of the fold-in.rates at some time during the past reported as indicated above. Noyear. additional entries are required when 2. Give the amount of the fold-in. a fold-in occurs. 3. DO NOT enter the amount of The presence or absence of a fold in the fold-in in the amount blocks. WILL NOT affect what you put in the amount blocks.Part of the COLA was folded into See above. 1. Give the date of the fold-in.the base rates at some time duringthe past year, and the remainder of 2. Give the amount of the fold-in.the COLA was carried over. 3. Give the amount of the carry- over. 4. DO NOT enter the amount folded in or carried over in the amount blocks. 22
  24. 24. LUMP SUM PAYMENT IN LIEU OF A GENERAL INCREASEWhen companies increase wages, they usually increase the base rates by a set amount, such as 30 cents or4%. However, companies will sometimes choose to grant employees a lump sum payment instead ofincreasing the base hourly rates. For example, a company may decide to give all employees $1000 inMarch and leave the base rates the same as they were the previous year. In such a case, the $1000 wouldbe reported as a useable lump sum payment.Care must be exercised in collecting or using data for lump sum payments, since companies make suchpayments for a variety of reasons. Lump sum payments are not used unless they are paid in place of theregular increase the firm would pay otherwise.When a useable lump sum payment is found, the dollar amount is written in the Remarks section of theWage Data Collection Form. The figure is then converted to an hourly equivalent amount and coded witha “B” reason code on the wage data collection form. “B” stands for bonus; however, a lump sum is nota bonus. The “B” code is an old one that was designed when bonuses were reported on wage changesand before lump sums became popular. It simply has not been changed and is still required for correctcomputer processing of useable lump sums.See Table 4 for instructions on recording lump sum payments on the Data Collection Worksheet. 23
  25. 25. TABLE 4 LUMP SUM PAYMENT IN LIEU OF A GENERAL INCREASE Note: Only those payments made in lieu of a general increase may be used. Lump sum payments made for other purposes are not useable. ENTER INFORMATION SITUATION DATE AMOUNT REASONNo lump sum was reported on Enter the date of Convert the lump sumthe full-scale survey, but a lump the lump sum amount to a straightsum was paid during the past payment. time hourly equivalent, Byear. and enter that amount.A lump sum was reported on the Enter an asterisk Enter the hourly equivalentfull-scale survey, but no lump (*), and explain reported on the full-scalesum was paid during the past the situation in survey, and put a hyphen (-)year. Remarks. over the number in the third B decimal place.A lump sum payment was made Enter the date of 1. Convert both lumpduring BOTH of the last two the lump sum sum amounts to straightyears , and the lump sum payment. time hourly equivalents.payment reported on the full-scale survey was lower than the 2. Subtract the full- Bpayment during the last year. scale amount from the wage change amount. 3. Enter the amount of difference.A lump sum payment was made Enter the date of 1. Convert both lumpduring BOTH of the last two the lump sum sum amounts to straightyears , and the lump sum payment time hourly equivalents.payment reported on the full- 2. Subtract the wagescale survey was higher than the change amount frompayment during the last year. the full-scale amount. 3. Enter the amount of B difference, and put a hyphen (-) over the number in the third decimal place.A lump sum payment was Leave blank Leave blank Leavereported on the full scale blanksurvey, and the same amount was Explain the situation in Remarks.paid again during the past year. 24
  26. 26. THINGS TO REMEMBERPlease keep these things in mind when recording wage change data:⇒ Be sure that you enter the date you contacted the firm in the space provided.⇒ List all adjustments chronologically.⇒ If more than five adjustments took place, two or more amounts will have to be combined on the Wage Change Worksheet since the form has room for only five entries. In this case, you should combine “like” adjustments, such as two COLAs or two general adjustments, and then state in Remarks the date and amount of each adjustment you combined and state in which amount column the combined figure is located.⇒ Regardless of what types of adjustments were paid we must verify the information wherever possible by using contracts, rate sheets and information on the full-scale survey forms such as item 19b. Differences between this information and new information the company gives us this year must be explained in Remarks.⇒ If a rate or COLA amount was incorrectly reported in the full-scale survey, you must correct the error this survey by adding to or subtracting from the full-scale rate. Example: A rate was reported as $7.250 on the full-scale survey. You learn this survey that the rate should have been reported as $7.100. Part B of the Wage Change Worksheet would show the $.150 error as a decrease with the explanation in Remarks. Any other changes would then be shown separately on the Wage Change Worksheet. Sometimes a company will tell you they paid a percentage increase and we will have in our possession a contract or rate sheet showing the specific hourly rates that will be effective when the adjustment is paid. In this situation, we will use the cents per hour difference between the full-scale rate and the current contract rate rather than the percentage of the adjustment (since the cents per hour figure includes company rounding). To arrive at the adjustment(s) you will post on the Wage Change Worksheet, subtract the full-scale rate from the more recent contract rate and less recent contract rates from any subsequent rates. If several adjustments have occurred, each should be recorded separately. You should of course verify that all rates in the contract are being paid.Now you are ready to complete the Practice Exercises for Wage Change Surveys. 25

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