Arden Glassworks has been the major employer in the town of Arden for over 20 years,drawing mainly on the low and semi-skilled labor force.Now,a large telephone marketing firm is opening an operation in Arden which will also employ low and semi-skilled workers.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

Since the marketing firm will also employ low and semi-skilled workers in the same geographic area as Arden Glassworks, there will likely be competition for workers. This competition may lead to upward pressure on wages and benefits at both firms as each tries to attract and retain workers. Therefore, Arden will need to consider the pay scales and benefits offered by the new firm in order to remain competitive and retain its employees. Choice A is incorrect because even though the two firms are in different industries, they will still be competing for the same pool of low and semi-skilled workers. Choice B is also incorrect because while offering higher pay and benefits may be one strategy for retaining workers, it is not the only option and may not be effective if the marketing firm is offering more attractive compensation packages. Choice C is also incorrect because while labor costs may be a consideration in the marketing firm's decision to set up operations in Arden, wage levels in the area are not the only factor and there may still be upward pressure on wages and benefits due to increased competition for workers.

Arden Glassworks Has Been the Major Employer in the Town