This article continues are series on recent contract settlement trends. It uses city police 2022 settlements as the data source, but these trends seem to apply generally to other public safety occupations. In this article we cover the impact of location on contract settlements.
This article continues our series on recent developments influencing contract negotiations. One of the most important influences on contract negotiations (and arbitration) is contract settlements, especially among comparable jurisdictions. There have been some unusual patterns that have developed in Washington public safety labor negotiations, and these seem to be highly influenced by external economic events.
In the last couple of articles in this series, we discussed the state of local government revenues and their potential impact on negotiations. In this article, we discuss how the differences between the structure of local economies can impact negotiations. We also discuss some significant shifts in revenue distribution that have occurred in recent years, especially since the pandemic.
In the last article in this series, we briefly discussed the Washington tax system and how it impacts local government revenues. In this article, we will discuss the current revenue situation.
In the previous articles in this series, we’ve discussed inflation and inflation predictions. We have also discussed expectations for whether there will be a recession and how that might impact the job market. Two other important economic factors to discuss, as they will have some impact on labor contract settlements, are the tax revenues and budgets of local governments.
In the last two articles in this series, we discussed recent and projected CPI. We have described the recent spikes in inflation as well as economist predictions that inflation will start to taper off.
In the last Newsletter article in this series, we updated you on recent inflation numbers. This included a surprisingly large jump in the inflation reported in June, followed by a modest decline in July. Do the July numbers indicate that we’ve turned a corner? If so, how far can we expect the CPI to drop? That’s the topic that we turn to today.
Earlier this month we presented a webinar covering recent inflation and contract settlement trends with a focus on what lies ahead for groups currently in negotiations or planning to start them soon. The webinar and transcript are available on our Premium Website. This article is the first of a series on these issues.
The latest CPI report continued to show high inflation numbers, even higher than the previous set. But inside those numbers were signs that the predicted slow down in inflation may lie ahead. The Seattle 12-month through April to April “W” index was reported at an eye-popping 8.1%. The All Cities index was even higher at 8.6%:
In our last Newsletter, we report on the just-released June CPI numbers. As we indicated, while we had expected a sharp rise, the size of the rise caught us (and most economists) by surprise. The June national and Seattle indices exceeded 6% as did other regional CPI measures.