Private Sector
Whether you are blue or white collar non-union employee, most large corporation pay based on merits and what other companies are paying for the same job. Merits are based on performance as well as the inflation rate.
Large corporations reward excellent employees with promotions or bonuses. Some even share profits to employees.
I work in a union shop once, and I find at times salary artificially inflated. I've seen union employees that are not worth squat get the same wage increases as excellent workers.
I've also seen increases that are not in step with the inflation.
A lot of union employees shop around, one town can pay more or have more benefits than another.
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