Deck 12: Managing Building Global Commitment: Managing Labor Relations

Question 1

Unions are not the only means by which employees can obtain desired outcomes. Other methods are most commonly called worker participation. Which of the following is one of these methods?

A) Formal worker groups
B) Joint consultation committees
C) Employee participation councils
D) Group membership

Answer 1

B

Question 2

Which of the following statements accurately reflects the status of unions in EU countries?

A) About 50% of those employed in the EU are union members
B) Unions in the EU are no longer a force to be reckoned with
C) Membership and strike activity continues to decline
D) The decline in union membership has been more precipitous in western European states

Answer 2

C

Question 3

Which one of the following countries has experienced double-digit losses in union density rates over the last decade?

A) Australia
B) Belgium
C) Canada
D) Norway

Answer 3

A

Question 4

Which of the following statements accurately describes the status of unions in Japan?

A) Workers in a Japanese company are represented by one union based on their profession or vocation
B) The relationship between union and management is often militant and violent
C) There are some large national unions in the public and private sectors, but nearly 95% of all unions follow the tradition of "one company, one union"
D) Training received by junior managers in union positions is viewed unfavorably by management and is rarely taken into account for future promotions

Question 5

To preserve jobs, unions have been more willing in recent years to give in to multinational firms' demands on which of the following?

A) Starting salary and hourly rates
B) Greater use of temporary employees
C) Job titles
D) More flexible work hours

Question 6

Which of the following statements accurately describes the status of unions in Japan?

A) When Japanese unions go on strike, they do so for very short periods of time, often a half day or less
B) The average Japanese employee strikes for about 2 minutes a year, compared to 11 minutes for the United States, and 30 minutes for Spain
C) There is no cross-union cooperation in Japan
D) Unions agreed to extend the traditional shunto, or Spring Wage Offensive, when strikes were no longer necessary

Question 7

Which of the following statements accurately describes the status of unions in the UK?

A) Union density in the UK is about 2.5 times that of the United States, however, participation has seen a big dip in the last few years
B) The desire for unions to push political agendas led to the formation of the Labor Party in Britain in 1883
C) British unions are powerful, however, their membership and influence has waned over the last decade
D) All of the above

Question 8

Which of the following statements correctly pairs the country with its strike activity record?

A) Germany: strikes are more common than in other Western European nations
B) Japan: most labor and management disagreements are settled amicably so it is rare for bad relations to result in a strike
C) China: there has been very little change in frequency of strikes in recent years
D) United States: once a contract is in place, strikes called "wildcat strikes" are common, but usually not authorized by the union

Question 9

Legal protections for worker severance in the Netherlands include which of the following?

A) Outstanding holiday pay and outplacement counseling
B) One month's salary for 35-45-year-olds; 1.5 months for 45-55-year-olds
C) Extensive advanced notice
D) Prorated year-end premium

Question 10

Which of the following statements does not accurately describe unions in China?

A) For some time now workers can be laid off and other Western-type managerial prerogatives have been available
B) The All-China Federation of Trade Unions (ACFTU) is the world's largest national trade union
C) A traditional hallmark of China's labor relations approach has been full employment, known as the "iron rice bowl"
D) Some Chinese and foreign firms are adjusting to a newly growing voice of labor by providing higher pay and a variety of benefits

Question 11

Multinationals have the upper hand in dealing with workers, even if those workers are unionized and spread across a variety of countries. Which of the following is not an action option for multinationals in the face of a strike?

A) Resources available to multinationals can insulate them from actions by disgruntled employees
B) Absorb losses at a particular location
C) Increase production temporarily at another facility to offset production declines where there is unrest
D) Threaten to move its operations to another country in response to a strike

Question 12

Which of the following countries had the highest number of strikes or lockouts in 2008?

A) Switzerland
B) Sweden
C) Belgium
D) Finland

Question 13

The permanent employment laws in many countries have resulted in differences between the Untied States and countries like France and Germany. Which of the following is an example of these differences?

A) The possibility of firing someone quickly without cause is a simple matter in Germany
B) It is a simple matter to fire an employee in France after a relatively short probationary period
C) German workers get an average of four time more severance pay than U.S. workers
D) In France, 45 hours is the legal weekly work limit for all employees

Question 14

Most observers suggest that international unions such as the International Labor Organization (ILO) and the International Confederation of Free Trade Unions (ICFTU) have been largely ineffective. Which of the following factors appear to contribute to this lack of effectiveness?

A) Most workers probably see their foreign counterparts as competitors, rather than as allies in the same struggle
B) Multinationals have not been able to effectively play one country and its unions against another country
C) The ILO has mainly been responsible for developing guidelines and standards for labor conditions and treatment that have the same status as an international treaty
D) All of the above

Question 15

Which of the following is an example of how multinational firms operating in the Netherlands circumvented mandated severance benefits for workers?

A) Placed unneeded, but perfectly healthy, employees on disability to eliminate them from payroll
B) Terminated people in batches of 49 to bypass a Dutch law requiring firms to negotiate with unions to obtain approval for layoffs of more than 50 employees
C) Ignored Dutch labor laws that do not allow unilateral breaking of employment agreements by the employer
D) None of the above

Question 16

Which of the following statements accurately describes joint consultation committees (JCC)?

A) JCC members make suggestions that must be adopted by management
B) JCCs are comprised of groups of workers who sit on a committee that deals with topics of interest to employees only
C) JCCs are common in many Western countries
D) JCC effectiveness depends on the goodwill and intentions of a firm, with success more likely in autocratic companies with poor employee relations

Question 17

French unions have been dominated by a handful of national unions and the chief difference among them is which of the following?

A) The industry they cover
B) Their political leanings
C) The occupations they cover
D) The number of members they have

Question 18

National differences in union membership have been tied to which of the following factors?

A) The size of the population of the country
B) The starting salary for public workers
C) The number of workers over the age of 35
D) The political leanings of the country's government

Question 19

Which of the following statements accurately describes works councils?

A) Works councils are a form of employee participation common in Western Europe (e.g., France, Germany, and the Netherlands)
B) Works councils emerged as a way for firms to improve competitiveness and the bottom line
C) Works councils are similar to JCCs and have little power to block management decisions and actions
D) Research on the impact of works councils on productivity clearly shows a positive impact

Question 20

Which of the following statements accurately describes the status of unions in Mexico?

A) Mexican firms are used to negotiating with one unified union from factory to factory
B) A variety of federal laws govern labor relations in Mexico, many of which favor management, including caps on wages
C) Unions have won a large number of worker rights, mostly through federal legislation rather than direct union activity
D) Mexico is a country with a relatively low degree of union participation

Question 21

Explain how permanent employment laws affect termination in a European country like Germany compared to the United States.

Question 22

In addition to unions there is only one other type of worker participation that offers employees a voice and a way to have an impact-the joint consultation committee.

Question 23

Bargaining agreements reached by unions and management end up covering many nonunion employees and a high union density does means that unions are more effective.

Question 24

Workers in all countries are concerned with pay, job security, benefits, and working conditions, so some join labor unions in order to exert some control over these important work outcomes up to and including having a say in important firm decisions.

Question 25

The poverty rate in Japan, the world's third-largest economy, is among the highest in leading nations behind only Mexico, Turkey, and the United States.

Question 26

Why is the threat by labor groups to reduce or stop work output less credible when the employer is a multinational?

Question 27

The largest challenge to domestic unions comes from multinational firms, which can move some or all of their operations to another country, and this fact resulted in the development of international unions.

Question 28

Union membership has declined by double digits over the last two decades in EU countries such as Germany and the Netherlands, as well as in Australia and the United States.

Question 29

Union activity in Africa is relatively underdeveloped and there is little difference across various countries in Africa.

Question 30

The Western European social support mechanisms are solidly in place, and have grown in some countries, and the influence of unions and restrictive labor laws may be waning, partly due to the power of multinationals to quickly shift production east to lower-wage locations.

Question 31

The union movement in the UK has a long history, having been legalized in 1871, and British unions are powerful because their membership and influence has remained stable over the last decade.

Question 32

Union membership in the Untied States has been steadily declining in recent years, and in 2011 made up only 11.9% of the total American workforce, well down from the 20.1% figure for 1983.

Question 33

Many countries have enacted "permanent employment" laws, in part as a response to union pressure, but these laws provide few if any protections for workers.

Question 34

Groups of workers ultimately have more direct control over one method of getting their way on key issues-that of threatening to reduce or stop work output-and this threat is even more credible when the employer is a multinational.

Question 35

Japan has thousands of enterprise unions (many different workers in a company, regardless of their profession or vocation, are represented by one omnibus union) so these in-house unions represent only the employees of their respective companies.

Question 36

Many powerful unions within countries are in effect political groups and, as a result, are more concerned with national issues than international ones.

Question 37

Unions in Sweden began as a socialist movement among manual workers and because of a friendly government, flourished in a mutually cooperative environment, which explains why Sweden has a high density rate (68%).

Question 38

Managing layoffs can be complex, but it is usually simplified because of the political issues in a different country.

Question 39

One of the traditional hallmarks of China's labor relations approach has been full employment, and this approach has been referred to as the "iron rice bowl."

Question 40

After World War II, many Japanese unions were both militant and violent and following many long and backbreaking strikes, Japanese employers basically struck a deal with their unions to obtain high wages in exchange for no labor strife.

Question 41

Why is strike activity in Germany not as common as in other Western European nations despite a long and powerful tradition of union influence?

Question 42

Compare strike activity in the Untied States with that in China, Japan, and Germany.

Question 43

What are some of the differences one might expect to find concerning how North American, European, and Asian unions operate? Why do you think such differences might exist?

Question 44

The oldest and most well-developed union systems occur in the EU countries; however, there are differences in the percentage of workers covered by unions. What factors have been tied to these national differences?

Question 45

Contrast the legal protections commonly found in Belgium with those in France, Germany, and Russia.

Question 46

Explain what is meant by the term "iron rice bowl" in the context of unions in China and describe its current status.

Question 47

Explain what is meant by an "enterprise union" in Japan and how part-time employees fare in these unions.

Question 48

Why do you think multinationals might have the upper hand in dealing with workers, even if those workers are unionized and spread across a variety of countries?

Question 49

Describe the relationship between the presence of unions and the level of worker militancy? Explain why this is the case.

Question 50

What are the three types of worker participation other than unions?

Question 51

Compare labor unions in Germany with those in France. Provide specific examples.

Question 52

Compare the legal protections for worker severance in two of the three following countries: France, Belgium, or Russia.

Question 53

Briefly describe the overall impact and general benefits of a unionized workforce.