BUSI 440 Ch 15

Moving employees through pay ranges using merit increases is more popular than automatic progression.

False

Single rates are not usually specified for workers within a particular job classification.

False

Which of the following is true regarding a gain-sharing plan?

Not all unions would be in favor of this type of plan

Wage adjustments in multiyear contracts may be specified through all of the following ways EXCEPT _____.

Turnover clauses

Increased global competition has caused unions to:

become more receptive to alternate reward systems that link pay to performance.

Which of the following actions is most likely to be favored by unions?

introducing lump-sum awards

Company A and Company B are in the same industry, but Company A is unionized and Company B is not. Therefore, _____.

it is difficult to argue with assurance that wage differences between the two firms are attributable to the presence of the union, although the possibility exists

For the past 10 years, a stable _____ of all major collective bargaining agreements in the private sector have contained a provision for lump-sum payouts.

one-third

In a(n) _____ pay plan, a contract is negotiated which specifies that employees hired after a given target date will receive lower wages than their higher-seniority peers working on the same or similar jobs.

two-tier

In the negotiation stage of a multiyear wage contract, Mark, the manager of SifCo Corp., specifies that changes will be made to the wage based on the changes in the consumer price index and mentions the effective dates of adjustment. Which of the following types of clauses has Mark introduced in the contract?

Escalator clause

In a two-tier wage system, employees hired after a specific date are placed in a higher wage scale than those hired prior to that date.

False

Lump-sum awards are added to base wages.

False

The CEO of BoardCom Inc., James, negotiates a new union contract with the union leader. If James wants to reduce expenses and keep the union happy, which of the following suggestions is most likely to be helpful?

Provide lump-sum awards in exchange for merit pay increases.

MaxTrain Corp. recognizes that its competitor GlasWell Corp., which is unionized, offers higher wages and benefits. To avoid unionization demands from its workers, MaxTrain decides to offer the same wages and benefits to its employees as GlasWell. Which of the following phenomena is exemplified in this case?

The spillover effect

A deferred wage increase is negotiated at the time of initial contract negotiations.

True

In automatic progression, seniority is used as the basis for movement through the job classifications.

True

Introduction of a gain-sharing plan is particularly effective when union members participate in plan development.

True

Lower-tier employees in a two-tier pay plan, those hired after the contract is ratified, receive wages 50 to 80 percent lower than employees in the higher tier.

True

Lump-sum awards are typically given because they are less costly to the employer than merit increases.

True

Many contracts specify a premium be paid above the worker's base wage for working nonstandard shifts.

True