Multiple choice

Directions: Choose the correct option for the given question:Some organizations have escalator clause in their labour agreements. What does this clause provide for?

  1. Automatic increase in wage/salary depending on seniority.

  2. Wage increase depending on output per day by the worker.

  3. Automatic increase in wage/salary depending upon increase in price index.

  4. Automatic increase in wage/salary depending on increase in profits of the firm.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An escalator clause in labor agreements provides for automatic wage or salary increases linked to changes in an official price index, such as the consumer price index, to offset inflation.

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