Profitability and Compensation Adjustments in the Retail Food Industry

Bibliographic Data

ID3288304
AuthorsCasey Ichniowski (University of Missouri), John Thomas Delaney (0000-0003-1038-0265)
Year1990
Volume43
Issue3
Pages183-S-202-S
Publication date1990-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/001979399004300312
OpenAlexW2068006276
ISBN9793990043003
LanguageEN
Citations received6
References cited14

This paper uses longitudinal data provided by a large unionized grocery store chain to examine the relationship between profitability and compensation adjustments between 1976 and 1985. Consistent with the predictions of a Nash bargaining model, negotiated compensation adjustments were inversely related to the pre-negotiation operating income of the relevant stores. Concessionary compensation adjustments in response to relatively low levels of prior profitability occurred in the first year of contracts and subsequent compensation growth was unaffected by differences in prior profitability. Decreases in compensation rates led to significant improvements in subsequent economic performance. Estimates of this relationship, however, indicate that the impact of compensation adjustments on profitability changes was less than dollar-for-dollar

Agricultural economics · Business · Commerce · Compensation (psychology) · Economics · Food industry · Industrial organization · Liberian dollar · Monetary economics · Negotiation · Profitability index · Consumer Market Behavior and Pricing · Finance · Firm Innovation and Growth · Food Science · Merger and Competition Analysis · Wine Industry and Tourism