COMP Ch 15

With gain-sharing plans, the most common union strategy is to _____. A. delay taking a stand B. be very enthusiastic C. have direct opposition to the plans D. have no concern for the plans

delay taking a stand

Unions may favor _____ because they make each individual worker more valuable, and less expendable, to the firm. A. pay-for-knowledge plans B. ESOPs C. lump-sum awards D. gain-sharing

pay-for-knowledge plans

There is some evidence that gain-sharing plans are more common in __________ than ___________. A. service industries, manufacturing B. union, non-union C. large companies, small companies D, small companies, large companies

union, non-union

Which of the following plans gives employees part ownership in the company? A. ESOPs B. Pay-for-knowledge plans C. Gain-sharing D. Profit-sharing

ESOPs

Which of the following is not one of the popular explanations for the decline of union memberships? A. Workers do not view unions as a solution to their problems. B. Increased management resistance to unions. C. Less intensity of union organizing efforts. D. Growing industries are most heavily unionized, while declining industries are less so.

Growing industries are most heavily unionized, while declining industries are less so.

The largest gains for public sector employees are reported for _____. A. teachers' unions B. firefighters C. telecommunication unions D. postal services

firefighters

Basically a phenomenon of the union sector, two-tier wage structures differentiate pay based upon the _____. A. type of work B. hiring date C. place of work D. length of contract, if applicable

hiring date

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. A. three-fourths B. one-half C. one-quarter D. one-third

one-third

Which of the following involves periodic adjustments based typically on changes in the consumer price index? A. A COLA clause B. A deferred wage increase C. A reopener clause D. An annual improvement adjustment

A COLA clause

Which of the following statements about single rates is true? A. Single rates are usually specified for workers within a particular job classification. B. Single-rate agreements differentiate wages on the basis of seniority. C. Workers with varying years of experience and output receive different single rates. D. Single-rate agreements differentiate wages on the basis of merit.

Single-rate agreements differentiate wages on the basis of seniority.

Which of the following is one of the reasons that a union may increase employee benefits? A. Increased management control B. Unions discourage the development of two-tier pay plans C. Strong union-worker preference for benefits D. Unions lead to a reduction in wage differentials

Strong union-worker preference for benefits

A deferred wage increase _____. A. specifies that wages will be renegotiated at a specified time B. specifies that sometimes such nonwage items as pension and benefits will be renegotiated under certain conditions C. is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract D. involves periodic adjustments based typically on changes in the consumer price index

is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract

In most companies a union would prefer to implement a _____ than some form of _________ A. pay-for knowledge pay system; gain-sharing plan B. gain-sharing plan; pay-for knowledge C. merit pay system; pay-for knowledge D. reward-sharing system; merit pay system

pay-for knowledge pay system; gain-sharing plan

Union employees in the public sector earn, on average, about _____ more than their nonunion counterparts. A. 40 percent B. 5 percent C. 14 percent D. 22 percent

22 percent

Research indicates that the presence of a union adds about _____ to employee benefits. A. 5 to 15 percent B. 20 to 30 percent C. 30 to 40 percent D. over 50 percent

30 to 40 percent

_____ is the movement through the wage ranges where seniority is specified as the basis. A. Length-of-stay clause B. Automatic progression C. Experience differential D. Occupation differential

Automatic progression

Which of the following is not one of the areas on which unions have a major impact? A. General benefit levels B. Customer service C. Structure of wages D. Salary policies and practices

Customer service

Which of the following plans aligns workers and management in efforts to streamline operations and cut costs? A. Employee stock ownership plans B. Pay-for-knowledge plans C. Gain-sharing D. Profit-sharing

Gain-sharing

_____ awards are one-time cash payments to employees, not added to an employee's base wage. A. Skill-based B. Merit increase C. Lump-sum D. Cash bonus

Lump-sum

Which of the following is not one of the main dimensions of structuring wage packages? A. Union versus nonunion members' preferences B. The division between direct wages and employee benefits C. Use of two-tier pay plans D. The relationships between worker wages and their managers' pay

Union versus nonunion members' preferences

Which of the following industries does not enjoy as much larger union-nonunion differentials as the others? A. Utilities B. Construction C. Transportation D. Agriculture

Utilities

Tiers can be used as a cost control strategy to allow _____. A. deflation B. economic survival C. expansion D. divestiture

expansion

Which of the following is true regarding a gainsharing plan? A. It prevents union members from sharing the wealth. B. It creates a difficulty in maintaining employment levels in marginal organizations. C. It becomes ineffective when union members participate in plan development. D. Not all unions would be in favor of this type of plan.

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

Which of the following statements regarding unions is not true? A. Union membership has fallen from approximately 20 to 12 percent since 1983. B. Approximately 37 percent of the public sector and 7 of the private are unionized. C. Since 1977, unions have been losing more certification elections. D. Since 1977, the number of certification elections has declined

Since 1977, unions have been losing more certification elections.

Wage adjustments in multiyear contracts may be specified in all of the following ways except _____. A. cost-of-living adjustments B. deferred wage increases C. reopener clauses D. adjustment clauses

adjustment clauses

Most union contracts recognize that different occupations should receive _____ wage rates. A. equal B. different C. experience D. merit

different

One dimension of wage package structuring concerns the division between _____ and _____. A. direct wages; employee benefits B. paid vacation; time off with out pay C. employee skills; job requirements D. task difficulty; working conditions

direct wages; employee benefits

Tiers can be used as a cost-cutting device to allow _____. A. economic survival B. expansion C. investment D. accretion

economic survival

Pay-for-knowledge plans do all of the following except _____. A. allow employees to be less expendable B. increase the probability that work can be subcontracted C. make each individual employee more valuable D. pay employees more for learning a variety of different jobs or skills

increase the probability that work can be subcontracted

A major reason unions accept alternative rewards is: A. competition from rival unions. B. international competition. C. these rewards are very popular among members. D. strong management forces their acceptance.

international competition

Employers seeking to avoid unionization by offering workers the wages, benefits, and working conditions won in rival unionized firms is known as _____. A. automatic progression B. the spillover effect C. market negotiations D. the equal mirror effect

the spillover effect

Company A and Company B are in the same industry, but Company A is unionized and Company B is not. Therefore _____. A. any wage differences must be attributed to the presence of the union in Company A B. any wage differences may not be attributed to the presence of the union, although the possibility exists C. Company B will be forced to form a union to compete with Company A D. any wage differences will never be attributed to the presence of the union

any wage differences may not be attributed to the presence of the union, although the possibility exists

A reopener clause specifies that wages or nonwage items can be renegotiated _____. A. at a specified time or under certain conditions B. periodically based on changes in the consumer price index C. at anytime that is convenient for both employer and employee D. annually at the start date of the contract

at a specified time or under certain conditions

Most unions insist on group-based performance measures with equal payouts to members because it _____. A. enables employees to learn to new skills B. cuts down on strife and internal quarrels C. encourages individual differences D. causes a spillover effect

cuts down on strife and internal quarrels

During periods of higher unemployment, the impact of unions is _____. A. unknown B. the same as periods of low unemployment C. smaller D. larger

larger

The gap between workers and their managers is 27 percent smaller in unionized firms because _____. A. managers in union firms receive lower wages B. worker wages are less likely to go up in unionized firms C. managers in nonunion firms receive higher wages to maintain internal equity D. worker wages go up faster than manager wages in unionized firms

managers in nonunion firms receive higher wages to maintain internal equity

The role of unions in administering compensation is outlined primarily in the contract. The vast majority of contracts specify that _____. A. overtime pay will be paid beyond a certain number of hours B. a premium will not be paid above the worker's base wage for working nonstandard shifts C. an employee must remain within a certain base wage for a certain length of time D. one or more jobs are to be compensated on a yearly basis

overtime pay will be paid beyond a certain number of hours

In a _____ pay plan, a contract is negotiated that implements two wage scales, a lower one for employees hired after a given date and a higher scale for those hired before. A. person-based B. efficiency-based C. one-tier D. two-tier

two-tier

A study of unions in 114 companies concluded that _____. A. unions made a difference in wages in half of the companies B. unions made a difference in wages in only a few industries C. unions made a difference in wages across all studies and time periods D. unions were not responsible for any differences in wages

unions made a difference in wages across all studies and time periods

Workers begin to show a strong interest in joining a union when _____. A. management is not unreliable. B. workplace relations are bad. C. workers feel they have influence over decisions affecting them. D. it is a condition of employment.

workplace relations are bad.