Deck 11: Contract Negotiations

Question 1

Accommodation occurs when both parties join to subvert the goals of the parties they represent.

Answer 1

False

Question 2

Bluffing allows a bargainer to test the firmness of an opponent's demands without a full commitment to a settlement and provides an opportunity to learn about the opponent's expectations.

Answer 2

True

Question 3

Integrative bargaining frequently involves employers' desires to improve flexibility and unions' desires for increased job security.

Answer 3

True

Question 4

A basic rule that appears to govern the bargaining process is that an impending contract expiration is necessary for the commencement of bargaining.

Question 5

Unions almost always prefer to hold bargaining meetings at the employer's premises so that they can take a tougher bargaining stance.

Question 6

The union has strong interests in a continuing relationship,while management generally has no intrinsic interest in its continuation.

Question 7

Studies on collective bargaining negotiations found that female negotiating teams were more likely to reach agreement.

Question 8

If the negotiations involve many units of a single company,the local is usually responsible for negotiating economic issues.

Question 9

Use of just-in-time inventories and other sophisticated supply-chain management methods has increased union bargaining power.

Question 10

Good faith bargaining does not require either party to agree to a proposal of the other or to make a concession.

Question 11

Distributive bargaining occurs when employers and unions accommodate each other's needs without cost or through simultaneous gains.

Question 12

Bargaining processes that involve proposals and counterproposals have lower expected payoffs than ones that involve making a proposal that is followed only by an acceptance or rejection.

Question 13

A bargaining book enables negotiators to quickly determine what contract clauses would be affected by a demand.

Question 14

Anticipating vulnerability to a strike may substantially improve management's bargaining power.

Question 15

Pension costs may depend not only on a defined contribution rate but also on quit rates,vesting rules,and pay rates at the time of retirement.

Question 16

A strike vote does not mean a strike will occur.

Question 17

If cost certainty is important,the contract should include person-tied benefits and cost-of-living clauses.

Question 18

Relief time costs less if it is broken up into short periods.

Question 19

Negotiation requires a simultaneous rather than a sequential mode because both parties would have already evaluated the other's proposals.

Question 20

Attitudinal structuring refers only to those activities that parties use to create positive and conducive atmospheres.

Question 21

The term "roll-up" refers to:

A) the time necessary for contract ratification.
B) the knowledge of how the union drops demands during the negotiation process.
C) entitlement to benefits that are tied to seniority of the work force.
D) the amount by which overtime benefits are increased by changes in the base rate.

Question 22

Before contract negotiations begin,the national union may call a _____ at which local delegates hear the national's plans for bargaining and propose their own issues.

A) counsel
B) revision meeting
C) bargaining convention
D) membership meeting

Question 23

Many bargaining books are tied to _____ so that answers to "what if" questions can be quickly calculated.

A) annual reports
B) benchmarks
C) spreadsheets
D) industry averages

Question 24

Which of the following should be avoided in a contract if cost certainty is important?

A) Cost-of-living clauses
B) Gainsharing clauses
C) Profit sharing plans
D) Piece-rate pay plans

Question 25

If the negotiating committee recommends contract acceptance,the membership nearly always votes to ratify.

Question 26

Local unions hold _____ before contract negotiations to help determine local members' commitment to bargaining issues in case a strike is called.

A) revision meetings
B) counsels
C) membership meetings
D) bargaining conventions

Question 27

A bargainer would have high strategic power if the opponent is under heavier time pressure.

Question 28

One reason why negotiations are seldom settled until close to a deadline is because the constituents of the bargainers may believe that settlement before the deadline constitutes poor effort.

Question 29

In the long run,high union density lowers investment and employment growth.

Question 30

Which of the following observations is true concerning union preparation?

A) Union preparations are entirely dissimilar to management's.
B) Traditionally,unions see contract negotiations as an opportunity to improve their outcomes.
C) Politically,union leaders are expected to stay out of membership problems.
D) Union is better prepared to respond to possible management demands than management is to respond to union demands.

Question 31

Which of the following terms refers to the set of techniques parties use to influence the terms of the ultimate settlement?

A) Negotiation
B) Brainstorming
C) Regulation
D) Positioning

Question 32

A(n)_____ is a cross-referenced file that enables negotiators to quickly determine what contract clauses would be affected by a demand.

A) accounts ledger
B) regulatory file
C) bargaining book
D) union file

Question 33

In which instance is the employer's financial performance known,thus helping the union to gauge the level of its economic demands?

A) Company shares are publicly traded
B) Company is unlisted
C) Company is privately held
D) Under all situations

Question 34

One of the purposes of a bargaining convention is to:

A) sound off the management about the possibility of a strike.
B) make the management publicly commit itself to certain concessions.
C) provide union's leadership a forum for publicly committing itself to certain bargaining positions.
D) announce the outcome of contract negotiations.

Question 35

Which of the following is a major purpose of a bargaining convention?

A) To announce the outcome of contract negotiations.
B) To raise grassroots issues for inclusion in the bargaining agenda.
C) To make the management publicly commit itself to certain concessions.
D) To create a face-saving exit strategy for the union leadership.

Question 36

The party wanting to renegotiate the contract must notify the other party of its intention and offer to bargain a new agreement at least _____ days before the end of the contract if the requesting party intends to terminate the agreement at that time.

A) 10
B) 90
C) 15
D) 60

Question 37

_____ is the communication by two parties of the terms they require to consummate a transaction and the subsequent acceptance or rejection of the terms by both.

A) Brainstorming
B) Bargaining
C) Positioning
D) Leveraging

Question 38

Which of the following observations is true concerning relief time?

A) It costs more if it is broken up into short periods.
B) It is not a factor that affects production volume.
C) It need not be closely examined while determining cost impacts.
D) Its implications are straightforward and need not be analyzed critically.

Question 39

In most negotiations,wage and benefit issues are often decided first.

Question 40

A strike vote:

A) means that a strike will occur.
B) gives bargainers the authority to call a strike after the contract expires.
C) does not require authorization from members.
D) is a rarity.

Question 41

Which relationship pattern involves demonstrating a high degree of militancy while recognizing the other's right to exist?

A) Containment-aggression
B) Accommodation
C) Conflict
D) Collusion

Question 42

_____ takes place when both parties join to subvert the goals of the parties they represent.

A) Containment-aggression
B) Accommodation
C) Conflict
D) Collusion

Question 43

_____ is an example of integrative bargaining in which the parties approach the negotiation with the idea that when it is concluded,both sides will have benefited.

A) Distributive bargaining
B) Mutual-gains bargaining
C) Intraorganizational bargaining
D) Attitudinal structuring

Question 44

Which of the following occurs when employers and unions accommodate each other's needs without cost or through simultaneous gains?

A) Integrative bargaining
B) Zero-sum bargaining
C) Distributive bargaining
D) Attitudinal structuring

Question 45

_____ occurs when the parties disagree on an issue and when its settlement will involve a loss for one party and a gain for the other.

A) Integrative bargaining
B) Mutual-gains bargaining
C) Distributive bargaining
D) Attitudinal structuring

Question 46

Why is bargaining required?

A) Because it has historically been a strict legal requirement
B) Because there are no trade-offs involved in the process
C) Because both the parties are facing a win-win situation
D) Because the parties have a conflict of interest on issues that jointly affect them

Question 47

According to studies,cooperative attitude to bargaining was related to companies with:

A) higher performance.
B) low sympathy for union goals.
C) low market share.
D) low capital intensity.

Question 48

_____ refers to trading blocks of apparently dissimilar issues,such as a union shop for a work rule change.

A) Bluffing
B) Deadline effect
C) Strong-arming
D) Logrolling

Question 49

Which pattern of relationship is characterized by competitive tendencies to destroy or weaken each other?

A) Containment-aggression
B) Accommodation
C) Collusion
D) Cooperation

Question 50

Which of the following statements is true about good faith bargaining?

A) "Good faith" bargaining involves not only attempting to reach an agreement,but also resolving any disputes about what the agreement means during the period in which it's in effect.
B) Failing to reach an agreement is a measure of "bad faith".
C) It is unnecessary to return to bargaining after an impasse is reached.
D) Good faith bargaining requires both parties to agree to a proposal of the other or to make a concession.

Question 51

Which of the following is used when employers and unions face a common problem?

A) Integrative bargaining
B) Zero-sum bargaining
C) Distributive bargaining
D) Attitudinal structuring

Question 52

Which of the following observations is true concerning negotiation?

A) Negotiation occurs if both parties believe they will benefit by agreeing.
B) Concessions made during negotiations are rarely voluntary.
C) Negotiations are more often seen as an unproductive exercise.
D) Negotiations are not characterized by written demands and concessions.

Question 53

In which of the following relationship patterns can the degree of friendliness between parties be described as a "sweetheart relationship"?

A) Containment-aggression
B) Accommodation
C) Collusion
D) Conflict

Question 54

Porter,Inc.is experiencing high employee turnover.Consequently,union membership is also eroded.The union and the management are seeking a solution to their joint problem by attacking any contractual causes of turnover.This is an example of:

A) attitudinal structuring.
B) zero-sum bargaining.
C) distributive bargaining.
D) integrative bargaining.

Question 55

Which of the following should be the focus when parties are having difficulty achieving a settlement?

A) How to achieve a settlement?
B) Why a settlement is necessary?
C) Who will gain the most?
D) How will the settlement affect the agent?

Question 56

_____ refers to activities parties use to create atmospheres of cooperation,hostility,trust,and respect.

A) Distributive bargaining
B) Mutual-gains bargaining
C) Intraorganizational bargaining
D) Attitudinal structuring

Question 57

Which of the following observations is true concerning distributive bargaining?

A) It occurs when employers and unions accommodate each other's needs without cost.
B) It frequently involves employers' desires to improve flexibility and unions' desires for increased job security.
C) It means some resource is in fixed supply,and one party's gain of that resource is the other party's loss.
D) It occurs when employers and unions accommodate each other's needs through simultaneous gains.

Question 58

_____ is the process for achieving agreement within a bargaining team.

A) Distributive bargaining
B) Mutual-gains bargaining
C) Intraorganizational bargaining
D) Attitudinal structuring

Question 59

Which of the following is a basic rule that appears to govern the bargaining process?

A) An impending contract expiration is for ending bargaining.
B) The initial bargaining demand should be large.
C) Strikes and lockouts are advocated throughout the bargaining process.
D) Negotiations begin when parties enter into an agreement.

Question 60

_____ pertains to whether bargaining interests are individual,competitive,or cooperative.

A) Restructuring
B) Motivational orientation
C) Interpersonal orientation
D) Power

Question 61

Which of the following is a hurdle that remains to be cleared before the tentative agreement becomes permanent?

A) The regulatory agencies must approve the agreement.
B) A referendum among the bargaining unit's membership.
C) The management might backtrack on its commitments.
D) The 60-day grace period required under law.

Question 62

What are the three components of a position signaling commitment?

Question 63

A bargainer would have high strategic power if:

A) agreement is more advantageous for the bargainer than for the opponent.
B) more ways exist to satisfy the bargainer's needs than the opponent's needs.
C) more credible threats can be made by the opponent than by the bargainer.
D) maintaining the relationship is less important to the opponent.

Question 64

Bargaining includes four behavioral components.Identify them.

Question 65

What are the major objectives of a bargaining convention?

Question 66

Which of the following may help to explain why negotiations under Taft-Hartley jurisdiction usually take substantially less time than Railway Labor Act negotiations?

A) Distributive bargaining
B) Collusion
C) Logrolling
D) Deadline effect

Question 67

Which component of a position signaling commitment refers to the clarity of the position?

A) Finality
B) Reliability
C) Specificity
D) Consequence

Question 68

What aspects of the existing contract are usually reviewed by the management preparing for negotiations?

Question 69

During the 1980s when companies requested concessions,unions responded with a number of demands.They were very unsuccessful in:

A) limiting subcontracting.
B) obtaining job security.
C) obtaining gainsharing.
D) receiving some form of profit-sharing.

Question 70

What is a bargaining book?

Question 71

How is bluffing valuable in negotiations?

Question 72

Which of the following observations is true concerning attitudes toward bargaining?

A) Gender differences do influence bargaining outcomes.
B) Negotiators with prosocial values favor gains over losses.
C) Competitive-social-value bargainers prefer to pursue a cooperative approach.
D) Bargainers' aspiration levels do not influence outcomes.

Question 73

Provide an example of a situation where interactive bargaining might be used.

Question 74

What were the union demands in response to companies' request for concessions in the 1980s? Were these demands successful?

Question 75

Before the tentative agreement becomes permanent:

A) the 60-day grace period is required under law.
B) the management might backtrack on its commitments.
C) the regulatory agencies must approve the agreement.
D) the international union must approve the agreement.

Question 76

Which of the following observations is true concerning interest-based bargaining?

A) Female managers avoid using it.
B) It is a form of mutual-gains bargaining.
C) Female union negotiators prefer using it.
D) It is a distributive bargaining strategy.

Question 77

A study of a specific contract ratification found votes for contract approval were more likely to come from union members who:

A) were dissatisfied with their pay.
B) believed they had few alternative employment options.
C) were negatively disposed toward the quality of the union's representation.
D) had higher job satisfaction.

Question 78

In most negotiations,these issues are often settled as a package near the end of negotiations.

A) Union security clauses
B) Seniority provisions
C) Work rules
D) Benefit issues

Question 79

Briefly explain the basic rules governing the bargaining process.

Question 80

Identify the important points that should be kept in mind by the management while preparing data for negotiation.