GM recently posted outstanding profits for the previous year. Union representatives would expect GM to
A) hire more workers to keep the momentum going.
B) be more concerned with cutting costs in the following year due to a smaller gross margin.
C) give pay increases to its unionized members.
D) give pay cuts to its unionized members.
E) renegotiate the contract for different benefits.

Question

Quizplus · Accepted Answer

If GM posted outstanding profits, it would be expected that they would reward their employees, specifically their unionized members, with pay increases. This would be a logical approach to keep their workforce happy and motivated to continue the momentum. Cutting costs (B) or giving pay cuts (D) would be counterproductive, as it could lead to decreased morale and productivity. Hiring more workers (A) or renegotiating benefits in the contract (E) may be possible options, but they are not necessarily tied to posting profits.

GM Recently Posted Outstanding Profits for the Previous Year