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Pay Board ruling opens path to challenge inflation driven raises
U.S. firms weighing legal challenges to inflated second and third year pay hikes built into contracts. The Pay Board ruled existing deals may be challenged by a party of interest or five of fifteen members, potentially narrowing increases above 9.5 percent. Executives foresee industry wide discussion, mixed readiness, and heavy review Burden of proof rests on companies seeking to block built in increases, with a general 5.5 percent cap.
MENTIONED IN THIS ARTICLE
New York
Coporate
Nong
AFL- 100
American Telephone & Telegraph Co
Organized Labor
Veamsters
The
Price Commission
Washington
Honeywell Inc
Minneapolis