The director of HR at Megatherium Industries knows that there are serious flaws in the company's compensation system.If employees freely discuss their wage or salary levels,raises and bonuses,the director is concerned that there will be widespread dissatisfaction and employee questions that will place the HR department and top management in a bad light.Consequently,Megatherium has a strict pay secrecy policy,and employees who discuss their pay are disciplined.Which of the following statements is TRUE?
A) Megatherium's policy of pay secrecy is unusual among U.S. organizations.
B) If Megatherium opens its pay policies, employee satisfaction and retention will improve because employees will not have to rely on conjecture and rumor.
C) Closed pay systems, such as Megatherium's, are illegal for any company traded on the NY Stock Exchange.
D) It is possible that Megatherium's policy violates the National Labor Relations Act.

Question

Quizplus · Accepted Answer

It is possible that Megatherium's policy violates the National Labor Relations Act, which protects employees' right to engage in "concerted activities for the purpose of collective bargaining or other mutual aid or protection." This includes discussing wages and other terms and conditions of employment. Therefore, Megatherium's policy of pay secrecy may be seen as a violation of the NLRA.

The Director of HR at Megatherium Industries Knows That There