Suppose that during a recession, Whirlpool saw the demand for its major appliances fall by one-third. Even though the demand decreased, Whirlpool chose to maintain wages for its non-union employees. This is an example of

Question

Quizplus · Accepted Answer

Whirlpool's decision to maintain wages for its non-union employees despite a fall in demand is an example of an implicit or social contract. This is because there is an unspoken agreement or expectation that the company will not reduce wages even in tough times, reflecting a commitment to employee welfare and possibly aiming to maintain morale and loyalty.

Suppose That During a Recession, Whirlpool Saw the Demand for Its