wage drift

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Wage Drift

The amount by which the wage or salary of a worker or group of workers exceeds a previously negotiated agreement. Wage drift may occur, for example, if an employee is asked to work unexpected overtime or if persons in a region are offered wages higher than the national rate during a labor shortage.

wage drift

the propensity for employees' actual earnings to rise faster than increases in their WAGE RATE. This tends to occur when there is full employment or when there are labour shortages in particular labour markets, and often results from informal bargaining between workers, their representatives (SHOP STEWARDS) and managers supplementing formal COLLECTIVE BARGAINING. It was considered to be a widespread problem in the UK in the 1960s and contributed to the decision to create a Royal Commission to investigate the state of UK INDUSTRIAL RELATIONS (See DONOVAN COMMISSION). See PRICES AND INCOMES POLICY, PAY, PAYMENT BY RESULTS.

wage drift

see EARNINGS DRIFT.
References in periodicals archive ?
Second, the smooth cooperation between union and nonunion workers and the NWC's effective tripartite coordination result in relatively small wage drifts (wage increases beyond those agreed on in the central negotiations), which are in sharp contrast to the large wage drifts in Europe.
For example, according to Holmlund and Skedinger (1990), wage drift in the Nordic countries accounted for almost 50% of total hourly wage increases for mining and manufacturing workers in the 1970s and 1980s.