Pete is a non-union employee at The Electric Co. The majority of the employees at The Electric Co. are unionized. The union at The Electric Co. has negotiated very good benefits. Even though he is not a union member and he does not have to pay union dues, Pete receives all the benefits that the union has negotiated. Pete's behavior is an example of
A)rivalry.
B)a barrier to entry.
C)free riding.
D)Taft-Hartley opposition.

Question

Quizplus · Accepted Answer

Pete is benefiting from the union's efforts without contributing to the cost of those efforts, which is a form of free riding. This can be seen as unfair by the union members who are paying dues to support their collective bargaining efforts.

Pete Is a Non-Union Employee at the Electric Co