Question 1

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

Accepted Answer

Wage adjustments in multiyear contracts may be specified through cost-of-living adjustments, deferred wage increases, and reopener clauses, but turnover clauses are not typically used for this purpose. Instead, turnover clauses are used to determine how wages will be adjusted if an employee leaves the organization or is replaced.

Question 2

In the negotiation stage of a multiyear wage contract, Mark, the manager of SifCo Corp., specifies that changes will be made to the wage based on the changes in the consumer price index and mentions the effective dates of adjustment.Which of the following types of clauses has Mark introduced in the contract?

Accepted Answer

Mark introduced an escalator clause in the contract, which specifies that wages will be adjusted based on changes in the consumer price index. Escalator clauses are commonly used in multiyear contracts to ensure that wages keep up with inflation.

Question 3

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

Accepted Answer

B

Question 4

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

Accepted Answer

Two-tier wage structures differentiate pay based upon the hiring date. This means that employees hired before a certain date receive higher wages and benefits than employees hired after that date for the same job.

Question 5

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

Accepted Answer

The answer of Union employees in the public sector earn,...

Question 6

The phenomenon where the nonunion management continues to enjoy the freedom from union "interference" in decision making, and the workers receive the rewards already obtained by their unionized counterparts is known as _____.

Accepted Answer

The spillover effect refers to the situation where non-union members still benefit from the gains negotiated by their unionized counterparts, including better pay, benefits and working conditions without any union interference. Automatic progression refers to salary increases based solely on an employee's length of service, experience differential refers to pay differences based on experience or skills, and equal mirror effect is not a recognized term in labor relations.

Question 7

A deferred wage increase _____.

Accepted Answer

A deferred wage increase is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract. It means that the increase in wages will come into effect at a later specified time, rather than immediately.

Question 8

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

Accepted Answer

A COLA (Cost of Living Adjustment) clause involves periodic adjustments based typically on changes in the consumer price index.

Question 9

Which of the following statements about single rates is true?

Accepted Answer

Single rates are typically specified for workers within a particular job classification. This means that all workers in the same job will receive the same rate of pay, regardless of how long they have been with the company or how well they perform. Single rates are often used in union contracts to ensure that workers performing the same job are paid equally.

Question 10

In a(n) _____ pay plan, a contract is negotiated which specifies that employees hired after a given target date will receive lower wages than their higher-seniority peers working on the same or similar jobs.

Accepted Answer

A two-tier pay plan differentiates between employees based on their hire dates, with newer employees receiving lower wages compared to their senior counterparts. This can create tension and dissatisfaction among employees, but may be necessary to maintain competitiveness and cost control in the organization.

Question 11

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

Accepted Answer

The answer of Research indicates that the presence of a...

Question 12

When compared to the impact of unions during periods of strong economies, the impact of unions during periods of higher unemployment is _____.

Accepted Answer

The answer of When compared to the impact of unions...

Question 13

The CEO of BoardCom Inc., James, negotiates a new union contract with the union leader.If James wants to reduce expenses and keep the union happy, which of the following suggestions is most likely to be helpful?

Accepted Answer

The answer of The CEO of BoardCom Inc., James, negotiates...

Question 14

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

Accepted Answer

This statement is false as declining industries are actually more heavily unionized. The correct explanations are: A) Workers do not view unions as a solution to their problems, B) Management resistance to unions has increased, and C) The intensity of union organizing efforts has become less.

Question 15

A study of unions in 114 companies concluded that _____.

Accepted Answer

The study concluded that unions make a difference in wages across all studies and time periods. This means that choice C is correct. Option A states that the impact of unions on wages is lesser during recession, which is not supported by the study. Option B states that the union-nonunion gap is the greatest during strong economies, which is not supported by the study. Option D states that unions are not responsible for any differences in wages, which is also not supported by the study.

Question 16

Which of the following is the most likely reason for most unions to insist on group-based performance measures with equal payouts to members?

Accepted Answer

Most unions insist on group-based performance measures with equal payouts to members to cut down on strife and internal quarrels. This approach ensures that there is no competition or conflict between members, and it promotes unity among workers. Additionally, it may also prevent workers from holding back or underperforming to ensure that others in the group are not rewarded, leading to improved overall performance.

Question 17

MaxTrain Corp.recognizes that its competitor GlasWell Corp., which is unionized, offers higher wages and benefits.To avoid unionization demands from its workers, MaxTrain decides to offer the same wages and benefits to its employees as GlasWell.Which of the following phenomena is exemplified in this case?

Accepted Answer

The spillover effect occurs when the practices or conditions in one organization influence those in another, as seen when MaxTrain adopts similar wages and benefits to avoid unionization like GlasWell.

Question 18

Which of the following statements regarding unions is NOT true?

Accepted Answer

The statement that there has been a consistent 2 percent annual decrease in certification elections decided in favor of unionization is not true. There is no evidence to suggest a consistent percentage decrease in favor of unionization since 1997.

Question 19

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

Accepted Answer

While it is possible that the presence of a union in Company A could contribute to wage differences between the two firms, there may be other factors at play. For example, Company A may offer more comprehensive benefits or have a different pay structure than Company B. Without more information, it is difficult to make a definitive statement about the cause of any wage differences between the two firms.

Question 20

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

Accepted Answer

According to the article, firefighters have seen the largest gains in wages compared to other public sector employees.

Quiz 15: Union Role in Wage and Salary Administration