Deck 15: Working With Organized Labor

Question 1

Unions are formed to represent employees' interests to:

A)employment agencies.
B)federal courts.
C)management.
D)OSHA.

Answer 1

C

Question 2

Additional Case 15.1
Billiards, Inc. makes collapsible pool cues and other billiard products. Tegau, the general manager, has called a management team meeting with Tammy, the director of HR; Gary, the VP of operations; Ramonia, the employee relations specialist; and Ryan, a labor relations consultant.
Tegau wants ideas from her management team about what to do concerning the possible unionization of their workers. Tammy suggests that they do nothing, let the union conduct its vote, and if certified, treat it as a legitimate worker representative of the workers. Gary says the firm should begin aggressively opposing union organization. He thinks first-line supervisors should be brought in and told that if workers in their areas vote for the union, the supervisors will lose their jobs and the company might sell off the unionized part of the business. Ramonia suggests that Billiards, Inc. tell the employees about their current plans to upgrade employee benefits and working conditions-a project she's worked on for the last six months.
Management decides to mildly oppose the union but the union is certified anyway. Tegau is now in her first contract negotiation. Ryan explains to the union that if they will accept flexible work rules, the employees can have more fulfilling jobs, the company will save money which it can spend on benefits, and the union will start with a positive relationship with the company. The union representative says "No way. We go on strike in ten days."
Refer to Additional Case 15.1. Which manager has general responsibility for day-to-day management-labor relations at Billiards, Inc?

A)Tammy
B)Ramonia
C)Ryan
D)Tegau

Answer 2

D

Question 3

Unions are more likely to take hold in firms where:

A)HR managers involve employees in policy making decisions.
B)employees are compensated at above-market rates.
C)employees are dissatisfied with their jobs.
D)HR managers lack significant experience.

Answer 3

C

Question 4

Which of the following is specifically prohibited by the Taft-Hartley Act?

A)implementing a closed shop
B)discharging an employee involved in union organizing activities
C)coercing employees in their choice of a collective bargaining representative
D)refusing to bargain collectively with the employees' designated union

Question 5

What was the first attempt to equalize power between labor and employer?

A)Taft-Hartley Act
B)Davis-Bacon Act
C)Wagner Act
D)Landrum-Griffin Act

Question 6

The ________ gave employees the right to organize and created the National Labor Relations Board.

A)Taft-Hartley Act
B)Landrum-Griffin Act
C)Wagner Act
D)Norris LaGuardia Act

Question 7

The person who bears the most responsibility for daily labor-management relations in an organization is the:

A)manager.
B)employee.
C)union steward.
D)labor relations specialist.

Question 8

U.N. Manufacturers was recently unionized. Now, the union refuses to bargain in good faith with U.N. This is considered an unfair union practice by the:

A)Wagner Act.
B)Landrum-Griffin Act.
C)Taft-Hartley Act.
D)Norris LaGuardia Act.

Question 9

In a unionized company, managers would most likely need to:

A)avoid being involved in the day-to-day implementation of the labor agreement terms.
B)use strong-arm tactics to discourage employees from demanding terms in their labor agreement.
C)serve on committees that hear grievances brought by union members against the company.
D)lower wages of union employees so the company can use the savings to offset union dues.

Question 10

The Wagner Act was primarily established to:

A)prohibit federal involvement in employer and employee wage disputes.
B)equalize the power between employees and employers.
C)give employers greater advantages over employees.
D)set federal and state minimum wages rates.

Question 11

The National Labor Relations Board:

A)was created by the Taft-Hartley Act.
B)is a federal agency within the Department of Labor.
C)is an independent federal agency created to administer U.S. labor law.
D)is a federal board of union members who establish and control U.S. labor law.

Question 12

All of the following were considered illegal under the Wagner Act EXCEPT:

A)companies intentionally interfering in the formation of a union.
B)discharging employees who have failed to perform their job duties.
C)discriminating against employees to discourage union membership.
D)coercing employees to keep them from exercising their rights to form unions.

Question 13

Unionized companies face a competitive disadvantage against nonunionized rivals because of wage constraints.

Question 14

The Taft-Hartley Act was created to:

A)prohibit federal involvement in employer/employee rights.
B)strengthen union rights above both employer and individual employee rights.
C)give employers greater advantages over employees.
D)ensure a level playing field for labor unions and management.

Question 15

Which issue primarily led to the breakdown in negotiations between the UAW and General Motors in 2007?

A)layoffs
B)salaries
C)union power
D)health-care costs

Question 16

Lian had worked for International Resources for 12 years when he and other workers decided to form a union. When International Resources found out about his plan, the company began intercepting his phone calls and e-mails in order to limit the dissemination of union-based information. In addition, Lian was told that his position at the company was in danger of being eliminated, but that if he "reconsidered" his recent behavior, his job would be secure. International Resources' tactics were made illegal under the:

A)Wagner Act.
B)Taft-Hartley Act.
C)Landrum-Griffin Act.
D)Federal Union Protection Act.

Question 17

Companies typically prefer non-union work forces because:

A)unionized labor decreases productivity and morale.
B)unions require firms to give regular merit raises to employees.
C)union agreements tend to limit flexibility in employee work assignments.
D)nonunion workforces typically have much better relationships with management.

Question 18

Which industry is the only one that allows closed shops?

A)Restaurant
B)Construction
C)Automobile
D)Garment

Question 19

Before 1943, no laws protected labor unions and their members.

Question 20

Prior to 1935, the U.S. government viewed the free market as a system that:

A)should provide guaranteed protection to labor unions.
B)could be improved with government restrictions.
C)best suited private employee relationships.
D)should exclude labor organizations.

Question 21

Right-to-work laws make it illegal to deny unions the right to organize.

Question 22

A recent union election at Proactive, Inc. was run without any kind of federal government assistance. Which of the following is true of this action?

A)It is perfectly legal. The government is not allowed to be involved in union formation.
B)It is illegal under the Taft-Hartley Act.
C)If the union vote was conducted off of company grounds, it is legal. If it was conducted on company grounds, it is illegal.
D)It is the most common practice of labor organizers.

Question 23

A federal law designed to protect employees' rights to form and join unions and to engage in such activities as strikes, picketing, and collective bargaining is the ________.

Question 24

A union arrangement that requires new employees to join the union 30 to 60 days after their date of hire is referred to as a(n)________.

Question 25

The ________ is a law designed to regulate labor relations in the transportation industry.

Question 26

The ________ regulates how unions are organized, how they run their own business, and what their fiduciary responsibilities are.

A)Taft-Hartley Act
B)Landrum-Griffin Act
C)Railway Labor Act
D)Wagner Act

Question 27

Which of the following is NOT a characteristic of U.S. labor relations?

A)Labor contracts
B)Business unionism
C)Collective bargaining focus
D)Unions structured by region

Question 28

Featherbedding creates a union agreement that causes employees to pay for services that they are not receiving and/or forces them to hire extraneous workers.

Question 29

The Landrum-Griffin Act includes which of the following provisions?

A)Management must offer a right-to-work provision.
B)Management may not interfere with a union's organizing efforts.
C)Unions must report their financial activities to the Department of Labor.
D)Labor union members may not participate in secret ballot elections.

Question 30

A law designed to protect union members and their participation in union affairs is the ________.

Question 31

Business unionism tends to focus on:

A)promoting union workers to a company's board of directors.
B)improving the economic welfare of union members.
C)improving the working conditions of managers.
D)increasing employee participation in company management.

Question 32

The ________ is a federal law designed to limit some of the power acquired by unions under the Wagner Act by adjusting the regulation on labor-management relations to ensure a level playing field for both parties.

Question 33

Under a ________, unions and management negotiate with each other in good faith to develop work rules for union members for a specific period of time.

A)labor contract
B)collective bargaining system
C)union acceptance strategy
D)distributive bargaining agreement

Question 34

With a collective bargaining system, the U.S. government typically:

A)favors employers.
B)favors employees.
C)plays a neutral role.
D)mediates in all areas of bargaining.

Question 35

Additional Case 15.1
Billiards, Inc. makes collapsible pool cues and other billiard products. Tegau, the general manager, has called a management team meeting with Tammy, the director of HR; Gary, the VP of operations; Ramonia, the employee relations specialist; and Ryan, a labor relations consultant.
Tegau wants ideas from her management team about what to do concerning the possible unionization of their workers. Tammy suggests that they do nothing, let the union conduct its vote, and if certified, treat it as a legitimate worker representative of the workers. Gary says the firm should begin aggressively opposing union organization. He thinks first-line supervisors should be brought in and told that if workers in their areas vote for the union, the supervisors will lose their jobs and the company might sell off the unionized part of the business. Ramonia suggests that Billiards, Inc. tell the employees about their current plans to upgrade employee benefits and working conditions-a project she's worked on for the last six months.
Management decides to mildly oppose the union but the union is certified anyway. Tegau is now in her first contract negotiation. Ryan explains to the union that if they will accept flexible work rules, the employees can have more fulfilling jobs, the company will save money which it can spend on benefits, and the union will start with a positive relationship with the company. The union representative says "No way. We go on strike in ten days."
Refer to Additional Case 15.1. Gary's suggestion:

A)violates the Wagner Act.
B)is permissible under the Taft-Hartley Act.
C)violates the Landrum-Griffin Act.
D)is a standard management practice in these situations and is legal.

Question 36

Three key laws - the Wagner Act, the Taft-Hartley Act, and the Landrum-Griffin Act - govern labor-management practices in union settings. Describe the major points of each act.

Question 37

The National Labor Relations Board is an independent federal agency created by the Taft-Hartley Act.

Question 38

A(n)________ makes it illegal within a state for a union to include a union shop clause in its contract.

Question 39

U.S. unions tend to be organized by:

A)their political involvement.
B)the industry they are organizing.
C)the type of job at an organization.
D)geographic region in the country.

Question 40

The independent federal agency created by the Wagner Act to administer U.S. labor law is the ________.

Question 41

In Germany, labor unions:

A)have union representatives on the boards of businesses.
B)are involved in national wage setting.
C)are affiliated with the Labor party.
D)are enterprise unions.

Question 42

The right to strike is unlimited in public sector unions.

Question 43

Currently, the influence of unions in the United States is:

A)decreasing in the public and private sectors.
B)decreasing among government workers.
C)increasing in the private sector.
D)increasing in the public sector.

Question 44

Codetermination is best defined as:

A)union-government cooperation to set national wages.
B)the political involvement of unions in Great Britain.
C)another term for enterprise unions in Japan.
D)worker representation on a corporation's board.

Question 45

Which country has the highest per capita union representation?

A)Great Britain
B)Denmark
C)Sweden
D)Italy

Question 46

The Railway Labor Act allows Congress and the President to intervene in a labor dispute if interstate commerce is disrupted.

Question 47

Coralie lives in France and works for the Paris transportation system. Clark lives and works in the United States. Both belong to unions. Which of the following is most likely true?

A)Clark's union is likely to be politically rather than economically motivated.
B)Coralie's union is likely to be politically rather than economically motivated.
C)Coralie's union has much more influence on working conditions than does Clark's union.
D)Clark's union is more likely to strike than Coralie's union.

Question 48

In the U.S., workers' economic benefits have historically been established by:

A)labor contract negotiation.
B)federal legislation.
C)government contracts.
D)work rules.

Question 49

The lifelong employment policy in Japan has:

A)encouraged cooperation between unions and management.
B)significantly decreased employees' desire to unionize.
C)created hostility between unions and management.
D)reduced union influence and bargaining strength.

Question 50

Currently the union membership rate for public-sector work is ________, more than five times higher than the membership rate in the private sector.

A)16%
B)26%
C)36%
D)50%

Question 51

Which of the following is the best comparison of the Japanese and U.S. labor relations systems?

A)Japan's labor system promotes industrial democracy, while the U.S. labor system does not.
B)The U.S. labor relations system fosters greater trust between unions and management than does the Japanese system.
C)Japan's unions have been decreasing in number as lifelong employment policies become weaker, while U.S. unions in both the private and public sector are growing.
D)Japan's labor relations system leads to close personal relationships among managers, union leaders, and workers, while the U.S. system tends to be adversarial.

Question 52

Union membership is increasing in the public sector while declining among private employers.

Question 53

A(n)________ is a union contract that spells out the conditions of employment and work rules that affect employees in the unit represented by the union.

Question 54

Pay, work breaks, vacations, and work assignments are elements of work rules in the collective bargaining system.

Question 55

Business unionism focuses on improving the economic well-being of workers.

Question 56

Industrial democracy is primarily marked by:

A)worker involvement in plant and corporate level decisions.
B)union involvement in political rather than economic issues.
C)managers who allow nonunion employees to vote on union issues.
D)union representatives who hold executive positions on corporate boards.

Question 57

Public sector unions differ from their private sector counterparts in that most public sector unions:

A)require union membership.
B)are organized by location.
C)have less bargaining power.
D)have no restrictions against striking.

Question 58

The U.S. labor relations system is most similar to the:

A)Swedish labor relations system.
B)U.S. court system.
C)British parliamentary system.
D)German economic system.

Question 59

In Japan, workers at large corporations are represented by:

A)business unions.
B)work councils.
C)enterprise unions.
D)labor specialists.

Question 60

At its peak in 1945, nearly ________ of the U.S. workforce was unionized.

A)56%
B)43%
C)35%
D)12%

Question 61

What are some reasons that workers join unions in both the U.S. and other countries? How do labor unions and labor relations differ around the world?

Question 62

Additional Case 15.2
TimeTable, Inc. plans to expand its manufacturing facilities. It is considering expansion either here in the United States or in Europe-Germany, Sweden, Great Britain, or France. It may also look at Japan or China, but those are currently second-tier choices.
In selecting a country, the CEO wants to avoid political involvement. While friendly toward unions, he doesn't want a union that is politically oriented. In fact, the CEO of TimeTable was once a union official. He went through a career change, earned an MBA, and moved into the executive management ranks about ten years ago.
TimeTable has a strong positive working relationship with its union. Management feels the NLRB is wrong in its ruling about the Wagner Act and is aggressively building labor-management teams. The CEO of TimeTable is even considering giving the union a seat on the board of directors.
Refer to Additional Case 15.2. Based on TimeTable's opinion of the Wagner Act, which country would be most appropriate?

A)Sweden
B)Germany
C)France
D)Great Britain

Question 63

Which term refers to a firm's overall plan for dealing with labor unions?

A)Labor relations strategy
B)Union acceptance strategy
C)Distributive bargaining strategy
D)Collective bargaining strategy

Question 64

Additional Case 15.4
Demetry is the president of a candle manufacturing company. He has heard that employees are considering trying to unionize. He is concerned about this and calls a meeting of upper-level managers and the HR department. Demetry wants to know what can be done in order to discourage a union. He is also concerned about the steps employees will take in unionizing. Demetry knows relatively little about unions. He started the company in his workshop for fun, and it grew into a business that he feels he can no longer control.
Kaia, a production manager, strongly believes that the employees will manage to unionize and wants to identify areas where the company would be able to give-and-take during the bargaining. She suggests that the company discuss benefits for retired union workers.
Karsten, an HR employee, also believes that the union will take hold. He suggests that Demetry not fight unionization and not coerce employees out of their support for the union. Karsten claims that showing such restraint may lead to a more harmonious and cooperative relationship between management and the union.
Refer to Additional Case 15.4. Karsten most likely believes in a strategy of:

A)union avoidance.
B)union substitution.
C)union acceptance.
D)union suppression.

Question 65

A proactive human resource management approach to labor relations is also known as:

A)union acceptance.
B)union suppression.
C)union substitution.
D)union solicitation.

Question 66

Union substitution and union suppression are two types of ________ strategies.

A)union organization
B)collective bargaining
C)union avoidance
D)decertification

Question 67

The union acceptance strategy is most likely to:

A)take hold in small companies.
B)prevent employees from joining unions.
C)foster distrust among management and employees.
D)result in cooperation between unions and employers.

Question 68

By the Bay, Inc. is a large company with over 500 employees and a massive employee involvement program. One of the labor-management teams deals with employee complaints. The team consists of six workers and two managers and is led by the HR director. This group is most likely:

A)protected by state laws.
B)bargaining for changes.
C)sponsored by the NLRB.
D)violating the Wagner Act.

Question 69

Management at Wilson Manufacturing worked with its union to create a strategic plan that reduced the workforce but gave the union a voice in management decisions and future expansion plans. This is most likely an example of a(n)________ labor relations strategy.

A)interactive bargaining
B)union acceptance
C)distributive bargaining
D)collective bargaining

Question 70

What is the riskiest labor relations strategy?

A)Union acceptance
B)Union suppression
C)Union substitution
D)Integrative bargaining

Question 71

Additional Case 15.4
Demetry is the president of a candle manufacturing company. He has heard that employees are considering trying to unionize. He is concerned about this and calls a meeting of upper-level managers and the HR department. Demetry wants to know what can be done in order to discourage a union. He is also concerned about the steps employees will take in unionizing. Demetry knows relatively little about unions. He started the company in his workshop for fun, and it grew into a business that he feels he can no longer control.
Kaia, a production manager, strongly believes that the employees will manage to unionize and wants to identify areas where the company would be able to give-and-take during the bargaining. She suggests that the company discuss benefits for retired union workers.
Karsten, an HR employee, also believes that the union will take hold. He suggests that Demetry not fight unionization and not coerce employees out of their support for the union. Karsten claims that showing such restraint may lead to a more harmonious and cooperative relationship between management and the union.
Refer to Additional Case 15.4. Karsten would most likely explain to Demetry that at least ________ of the employees must sign an authorization card before a union certification election can occur.

A)15%
B)30%
C)45%
D)60%

Question 72

French labor unions tend to be more politically than economically focused.

Question 73

Additional Case 15.1
Billiards, Inc. makes collapsible pool cues and other billiard products. Tegau, the general manager, has called a management team meeting with Tammy, the director of HR; Gary, the VP of operations; Ramonia, the employee relations specialist; and Ryan, a labor relations consultant.
Tegau wants ideas from her management team about what to do concerning the possible unionization of their workers. Tammy suggests that they do nothing, let the union conduct its vote, and if certified, treat it as a legitimate worker representative of the workers. Gary says the firm should begin aggressively opposing union organization. He thinks first-line supervisors should be brought in and told that if workers in their areas vote for the union, the supervisors will lose their jobs and the company might sell off the unionized part of the business. Ramonia suggests that Billiards, Inc. tell the employees about their current plans to upgrade employee benefits and working conditions-a project she's worked on for the last six months.
Management decides to mildly oppose the union but the union is certified anyway. Tegau is now in her first contract negotiation. Ryan explains to the union that if they will accept flexible work rules, the employees can have more fulfilling jobs, the company will save money which it can spend on benefits, and the union will start with a positive relationship with the company. The union representative says "No way. We go on strike in ten days."
Refer to Additional Case 15.1. Tammy's suggestion is most likely a(n)________ strategy.

A)union avoidance
B)union suppression
C)union substitution
D)union acceptance

Question 74

Franklin Manufacturing is concerned that the UAW may try to organize its production workers. To eliminate this possibility, managers have offered the employees job security policies, profit sharing, and open-door policies. Franklin Manufacturing is most likely practicing:

A)union acceptance.
B)union suppression.
C)union substitution.
D)integrative bargaining.

Question 75

Additional Case 15.2
TimeTable, Inc. plans to expand its manufacturing facilities. It is considering expansion either here in the United States or in Europe-Germany, Sweden, Great Britain, or France. It may also look at Japan or China, but those are currently second-tier choices.
In selecting a country, the CEO wants to avoid political involvement. While friendly toward unions, he doesn't want a union that is politically oriented. In fact, the CEO of TimeTable was once a union official. He went through a career change, earned an MBA, and moved into the executive management ranks about ten years ago.
TimeTable has a strong positive working relationship with its union. Management feels the NLRB is wrong in its ruling about the Wagner Act and is aggressively building labor-management teams. The CEO of TimeTable is even considering giving the union a seat on the board of directors.
Refer to Additional Case 15.2. Based on TimeTable's CEO's attitudes about politically active unions, which country would be LEAST appropriate?

A)China
B)Japan
C)Germany
D)France

Question 76

Additional Case 15.2
TimeTable, Inc. plans to expand its manufacturing facilities. It is considering expansion either here in the United States or in Europe-Germany, Sweden, Great Britain, or France. It may also look at Japan or China, but those are currently second-tier choices.
In selecting a country, the CEO wants to avoid political involvement. While friendly toward unions, he doesn't want a union that is politically oriented. In fact, the CEO of TimeTable was once a union official. He went through a career change, earned an MBA, and moved into the executive management ranks about ten years ago.
TimeTable has a strong positive working relationship with its union. Management feels the NLRB is wrong in its ruling about the Wagner Act and is aggressively building labor-management teams. The CEO of TimeTable is even considering giving the union a seat on the board of directors.
Refer to Additional Case 15.2. TimeTable's CEO's career experiences are similar to the CEOs of major corporations in which country?

A)China
B)Japan
C)Sweden
D)Great Britain

Question 77

A union acceptance strategy is typically characterized by flexible contract negotiations and positive labor-management relationships.

Question 78

Boden, the CEO of Dixon Paper, has filed for bankruptcy in order to reorganize his company and get out from under several very tough union contracts he negotiated two years ago during better times. Boden is most likely engaged in:

A)union avoidance.
B)union acceptance.
C)union suppression.
D)union substitution.

Question 79

Which of the following involves hardball tactics to prevent a union from organizing workers or to get rid of a union?

A)Union suppression
B)Union substitution
C)Distributive bargaining
D)Collective bargaining

Question 80

Additional Case 15.1
Billiards, Inc. makes collapsible pool cues and other billiard products. Tegau, the general manager, has called a management team meeting with Tammy, the director of HR; Gary, the VP of operations; Ramonia, the employee relations specialist; and Ryan, a labor relations consultant.
Tegau wants ideas from her management team about what to do concerning the possible unionization of their workers. Tammy suggests that they do nothing, let the union conduct its vote, and if certified, treat it as a legitimate worker representative of the workers. Gary says the firm should begin aggressively opposing union organization. He thinks first-line supervisors should be brought in and told that if workers in their areas vote for the union, the supervisors will lose their jobs and the company might sell off the unionized part of the business. Ramonia suggests that Billiards, Inc. tell the employees about their current plans to upgrade employee benefits and working conditions-a project she's worked on for the last six months.
Management decides to mildly oppose the union but the union is certified anyway. Tegau is now in her first contract negotiation. Ryan explains to the union that if they will accept flexible work rules, the employees can have more fulfilling jobs, the company will save money which it can spend on benefits, and the union will start with a positive relationship with the company. The union representative says "No way. We go on strike in ten days."
Refer to Additional Case 15.1. Ramonia's idea is most likely a(n)________ strategy.

A)union avoidance
B)union suppression
C)union substitution
D)union acceptance