1. Rising prices neutralize increased wages. 2. However, there is no reason to suppose that regions within countries will experience increased wage flexibility either in the short or long term. 3. Another problem, people close to the negotiations say, is creating a formula detailing what amount of increased productivity equals what amount of increased wages. 4. Before talks fell apart, the Teamsters and Summit reached agreement on terms for increased wages and benefits, longer breaks and more vacation time. 5. But as medical costs rise, employers may no longer find savings on benefits to offset increased wages. 6. But the crucial vote came earlier, on a Republican amendment that would have exempted many employers from paying the increased wage. 7. Companies have hired additional workers and increased wages to meet demand. 8. In addition, the increased wages will result in higher overhead for businesses, which will pass on those added costs to their customers, she said. 9. Increased wages and lower taxes are being blocked by organized labor, Dole said. 10. Labor alone accounts for two-thirds of consumer prices, and many businesses have been offering increased wages and benefits to attract and retain employees. |