Deck 15: Union Role in Wage and Salary Administration

Question 1

Research indicates that the presence of a union adds about _____ to employee benefits.

A) 5 to 15 percent
B) 20 to 30 percent
C) 30 to 40 percent
D) over 50 percent

Answer 1

C

Question 2

A study of unions in 114 companies concluded that _____.

A) unions made a difference in wages in half of the companies
B) unions made a difference in wages in only a few industries
C) unions made a difference in wages across all studies and time periods
D) unions were not responsible for any differences in wages

Answer 2

C

Question 3

The gap between workers and their managers is 27 percent smaller in unionized firms because _____.

A) managers in union firms receive lower wages
B) worker wages are less likely to go up in unionized firms
C) managers in nonunion firms receive higher wages to maintain internal equity
D) worker wages go up faster than manager wages in unionized firms

Answer 3

D

Question 4

Which of the following is one of the reasons that a union may increase employee benefits?

A) Increased management control
B) Unions discourage the development of two-tier pay plans
C) Strong union-worker preference for benefits
D) Unions lead to a reduction in wage differentials

Question 5

Tiers can be used as a cost-cutting device to allow _____.

A) economic survival
B) expansion
C) investment
D) accretion

Question 6

Which of the following is not one of the main dimensions of structuring wage packages?

A) Union versus nonunion members' preferences
B) The division between direct wages and employee benefits
C) Use of two-tier pay plans
D) The relationships between worker wages and their managers' pay

Question 7

During periods of higher unemployment,the impact of unions is _____.

A) unknown
B) the same as periods of low unemployment
C) smaller
D) larger

Question 8

Basically a phenomenon of the union sector,two-tier wage structures differentiate pay based upon the _____.

A) type of work
B) hiring date
C) place of work
D) length of contract,if applicable

Question 9

Which of the following industries does not enjoy as much larger union-nonunion differentials as the others?

A) Utilities
B) Construction
C) Transportation
D) Agriculture

Question 10

Tiers can be used as a cost control strategy to allow _____.

A) deflation
B) economic survival
C) expansion
D) divestiture

Question 11

The largest gains for public sector employees are reported for _____.

A) teachers' unions
B) firefighters
C) telecommunication unions
D) postal services

Question 12

Company A and Company B are in the same industry,but Company A is unionized and Company B is not.Therefore _____.

A) any wage differences must be attributed to the presence of the union in Company A
B) any wage differences may not be attributed to the presence of the union,although the possibility exists
C) Company B will be forced to form a union to compete with Company A
D) any wage differences will never be attributed to the presence of the union

Question 13

Which of the following is not one of the popular explanations for the decline of union memberships?

A) Workers do not view unions as a solution to their problems Less intensity of union organizing efforts
B) Increased management resistance to unions
C) Growing industries are most heavily unionized,while declining industries are less so
D) Difficulty: Medium

Question 14

In a _____ pay plan,a contract is negotiated that implements two wage scales,a lower one for employees hired after a given date and a higher scale for those hired before.

A) person-based
B) efficiency-based
C) one-tier
D) two-tier

Question 15

Workers begin to show a strong interest in joining a union when _____.

A) management is not unreliable
B) workplace relations are bad
C) workers feel they have influence over decisions affecting them
D) it is a condition of employment

Question 16

The role of unions in administering compensation is outlined primarily in the contract.The vast majority of contracts specify that _____.

A) overtime pay will be paid beyond a certain number of hours
B) a premium will not be paid above the worker's base wage for working nonstandard shifts
C) an employee must remain within a certain base wage for a certain length of time
D) one or more jobs are to be compensated on a yearly basis

Question 17

One dimension of wage package structuring concerns the division between _____ and _____.

A) direct wages;employee benefits
B) paid vacation;time off with out pay
C) employee skills;job requirements
D) task difficulty;working conditions

Question 18

Union employees in the public sector earn,on average,about _____ more than their nonunion counterparts.

A) 40 percent
B) 5 percent
C) 14 percent
D) 22 percent

Question 19

Employers seeking to avoid unionization by offering workers the wages,benefits,and working conditions won in rival unionized firms is known as _____.

A) automatic progression
B) the spillover effect
C) market negotiations
D) the equal mirror effect

Question 20

Which of the following is not one of the areas on which unions have a major impact?

A) General benefit levels
B) Customer service
C) Structure of wages
D) Salary policies and practices

Question 21

Pay-for-knowledge plans do all of the following except _____.

A) allow employees to be less expendable
B) increase the probability that work can be subcontracted
C) make each individual employee more valuable
D) pay employees more for learning a variety of different jobs or skills

Question 22

A reopener clause specifies that wages or nonwage items can be renegotiated _____.

A) at a specified time or under certain conditions
B) periodically based on changes in the consumer price index
C) at anytime that is convenient for both employer and employee
D) annually at the start date of the contract

Question 23

_____ awards are one-time cash payments to employees,not added to an employee's base wage.

A) Skill-based
B) Merit increase
C) Lump-sum
D) Cash bonus

Question 24

Which of the following involves periodic adjustments based typically on changes in the consumer price index?

A) A COLA clause
B) A deferred wage increase
C) A reopener clause
D) An annual improvement adjustment

Question 25

With gain-sharing plans,the most common union strategy is to _____.

A) delay taking a stand
B) be very enthusiastic
C) have direct opposition to the plans
D) have no concern for the plans

Question 26

Which of the following plans gives employees part ownership in the company?

A) ESOPs
B) Pay-for-knowledge plans
C) Gain-sharing
D) Profit-sharing

Question 27

Unions may favor _____ because they make each individual worker more valuable,and less expendable,to the firm.

A) pay-for-knowledge plans
B) ESOPs
C) lump-sum awards
D) gain-sharing

Question 28

In most companies a union would prefer to implement a _____ than some form of a _____.

A) skill-based pay system;gain-sharing plan
B) gain-sharing plan;skill-based pay system
C) merit pay system;skill-based pay system
D) reward-sharing system;merit pay system

Question 29

_____ are usually cut or lowered in order to improve a company's competitive stance.

A) Employee benefits
B) Employee wages
C) Labor costs
D) Marketing expenses

Question 30

What is the goal of unions?

A) To increase productivity
B) To secure sound,stable income levels for the membership
C) To provide an opportunity for workers to enjoy higher earnings
D) To be fair and equitable to both the company and the workers

Question 31

A deferred wage increase _____.

A) specifies that wages will be renegotiated at a specified time
B) specifies that sometimes such nonwage items as pension and benefits will be renegotiated under certain conditions
C) is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract
D) involves periodic adjustments based typically on changes in the consumer price index

Question 32

Which of the following plans aligns workers and management in efforts to streamline operations and cut costs?

A) Employee stock ownership plans
B) Pay-for-knowledge plans
C) Gain-sharing
D) Profit-sharing

Question 33

_____ is the movement through the wage ranges where seniority is specified as the basis.

A) Length-of-stay clause
B) Automatic progression
C) Experience differential
D) Occupation differential

Question 34

For the past 10 years,a stable _____ of all major collective bargaining agreements in the private sector have contained a provision for lump-sum payouts.

A) three-fourths
B) one-half
C) one-quarter
D) one-third

Question 35

Which of the following statements about single rates is true?

A) Single rates are usually specified for workers within a particular job classification.
B) Single-rate agreements differentiate wages on the basis of seniority.
C) Workers with varying years of experience and output receive different single rates.
D) Single-rate agreements differentiate wages on the basis of merit.

Question 36

Unlike unions in private sectors,many unions in public sectors _____.

A) are required to have a certain number of members
B) are limited to a certain number of members
C) have the ability to create a strike
D) do not have the right to a strike

Question 37

Most union contracts recognize that different occupations should receive _____ wage rates.

A) equal
B) different
C) experience
D) merit

Question 38

Wage adjustments in multiyear contracts may be specified in all of the following ways except _____.

A) cost-of-living adjustments
B) deferred wage increases
C) reopener clauses
D) adjustment clauses

Question 39

Most unions insist on group-based performance measures with equal payouts to members because it _____.

A) enables employees to learn to new skills
B) cuts down on strife and internal quarrels
C) encourages individual differences
D) causes a spillover effect

Question 40

Which of the following is true regarding a profit-sharing plan?

A) It prevents union members from sharing the wealth.
B) It creates a difficulty in maintaining employment levels in marginal organizations.
C) It becomes ineffective when union members participate in plan development.
D) Not all unions would be in favor of this type of plan.

Question 41

Lower-tier employees,those hired after the contract is ratified,receive wages 50 to 80 percent lower than employees in the higher tier.

Question 42

Vacation and holiday entitlements are among the clauses frequently found in holiday contracts.

Question 43

The gap between workers and their managers is usually higher in unionized firms.

Question 44

When management shows little concern for its employees and workplace relations are bad,employees may support a unionization effort.

Question 45

Most contracts recognize that jobs in the same occupations should receive different wage rates.

Question 46

About 60 percent of all U.S.collective bargaining agreements permit some alternative reward system that links pay to performance.

Question 47

From 1988 to 2008,union membership increased from 13.7 percent to 19 percent.

Question 48

Estimates of a union's impact on wages by comparisons of different industries show clearly that unionization raises wages an average of 35 percent.

Question 49

Strong management efforts to lower the impact a union has on wages have been successful in recent years.

Question 50

The vast majority of contracts specify that a job is to be compensated on an hourly basis.

Question 51

Unions respond relatively rapidly to wage increases during inflationary periods.

Question 52

A reopener clause could specify that benefits will be renegotiated at a specified time.

Question 53

Historically,union wages have experienced multiple-year upswings followed by multiple-year downswings.

Question 54

In automatic progression,seniority is used as the basis for movement through the job classifications.

Question 55

In a two-tier wage system,employees hired after a specific date are placed in a higher wage scale than those hired prior to that date.

Question 56

A deferred wage increase is negotiated at the time of initial contract negotiations.

Question 57

Wage concessions have become more prominent in recent years.

Question 58

Few contracts specify special rates for part-time and temporary employees.

Question 59

Many contracts specify a premium be paid above the worker's base wage for working nonstandard shifts.

Question 60

Single rates are not usually specified for workers within a particular job classification.

Question 61

Unions believe compensation packages should never make cuts in the traditional forms of wages in exchange for compensation tied more closely to the success of the firm.

Question 62

Profit-sharing plans are designed to align workers and management in efforts to streamline operations and cut costs.

Question 63

Other countries making inroads to product areas that were traditionally the sole domain of American companies have affected the compensation strategies of companies.

Question 64

An employee stock ownership plan exchanges part of an employee's base wage for part ownership in a company.

Question 65

Briefly describe gain-sharing plans.

Question 66

Most unions would agree that profit-sharing plans benefit employees.

Question 67

What are the reasons for the decline in unionization?

Question 68

What is the spillover effect?

Question 69

Lump-sum awards are added to base wages.

Question 70

Describe the strategy for moving employees through wage ranges based on merit.

Question 71

What is meant by automatic progression?

Question 72

Briefly describe profit-sharing plans.

Question 73

What are the different dimensions of the structuring of wage packages?

Question 74

Pay-for-knowledge plans pay new employees for the skills that they have learned at their previous employment or at recognized education school.

Question 75

Briefly summarize the impact of unions on general wages levels.

Question 76

Briefly summarize lump-sum awards and ESOPs.

Question 77

What are the three major ways by which wage adjustment during the term of the contract might be specified? Explain.

Question 78

There are numerous possible costs and benefits to union members for agreeing to a gain-sharing plan.

Question 79

Introduction of a profit-sharing plan is particularly effective when union members participate in plan development.

Question 80

Lump-sum awards are typically given because they are less costly to the employer than merit increases.