Unions try to ensure that unionized employees get similar wages and benefits across unionized organizations. What is the effect of this strategy?
A) Pay equality is ensured for all male and female jobs.
B) Higher wages are removed as a source of competitive advantage.
C) Pay bands are increased.
D) Turnover increases.

Question

Quizplus · Accepted Answer

By standardizing wages and benefits across organizations, unions reduce the ability of companies to use higher wages as a means to attract and retain talent, thus removing it as a competitive advantage.

Unions Try to Ensure That Unionized Employees Get Similar Wages