Chapter 15

Research indicates that the presence of a union adds about _____ to employee benefits.

30 to 40 percent

Which of the following plans gives employees part ownership in the company?

ESOPs

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

False

With gain-sharing plans, the most common union strategy is to _____.

delay taking a stand until real benefits are more apparent

The largest gains in wages for public sector employees are reported for _____.

firefighters

Basically a phenomenon of the union sector, two-tier wage structures differentiate pay based upon the _____.

hiring date

A deferred wage increase _____.

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

The phenomenon where the nonunion management continues to enjoy the freedom from union "interference" in decision making, and the workers receive the rewards already obtained by their unionized counterparts is known as _____.

the spillover effect

A study of unions in 114 companies concluded that _____.

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

Which of the following involves periodic adjustments based typically on changes in the consumer price index?

A COLA clause

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

False

A reopener clause specifies that wages will be renegotiated at a specified time or under certain conditions.

True

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

Which of the following is a reason for unions opposing gain-sharing plans?

Reduced need for jobs due to increased productivity

Which of the following statements about single rates is true?

Single rates are usually specified for workers within a particular job classification.

The vast majority of contracts specify that a job is to be compensated on an hourly basis.

True

There are numerous possible costs and benefits to union members for agreeing to a gain-sharing plan.

True

Voluntary benefits account for nearly 37 percent of the total compensation package for unionized workers.

True

Which of the following is a reason for unions favoring gain-sharing plans?

Increased involvement with job activities

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

Introducing lump-sum awards

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

An alternative strategy for organizations hurt by intense competition is to control base wages in exchange for giving employees part ownership in the company.

True

Few contracts specify special rates for part-time and temporary employees.

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

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

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