This study of automatic wage adjustments to changes in price levels will do the following: (1) give the historical background of cost-of-living wage adjustments to changes in price levels; (2) show whether there is a need for adjusting wages to changes in price levels; (3) show whether or not industry can afford to pay wages that are automatically adjusted to changes in price levels; (4) list some of the contracts between labor and capital that contain an example of the automatic cost-of-living wage adjustment; (5) summarize the problem and draw conclusions from the study as a whole.