PowerTools provides cafeteria food services below cost to its workers.Faced with cost reduction pressures,the company was forced to close the cafeteria.The employee union protested this move even though there was no mention in the contract about providing food services.This is an example of a(n)_____ issue.
A) work assignment
B) outsourcing
C) subcontracting
D) past practice

Question

Quizplus · Accepted Answer

This is an example of a past practice issue. Even though there was no mention in the contract about providing food services, the company had a past practice of providing cafeteria food services below cost to its workers. The employee union protested the closure of the cafeteria because it had become a part of the established practice within the company, even if it was not specifically written into any contract.

PowerTools Provides Cafeteria Food Services Below Cost to Its Workers