Chapter 7

The U.S. Bureau of Labor Statistics reports that both private sector union and nonunion workers receive a median__________paid vacation days after one year of service (A) 6. (B) 7. (C) 10. (D) 14. (E) 15.

10

The Family and Medical Leave Act of 1993 provide eligible employees up to ____ weeks of unpaid leave for a serious illness, birth or adoption of a child, or care of a seriously ill child, spouse, or parent. (A) 4 (B) 6 (C) 8 (D) 10 (E) 12

12

Under a cliff vesting schedule, an employee is considered fully vested after completing ____ years of service. (A) 10 (B) 5 (C) 15 (D) 20 (E) 30

5

The Family and Medical Leave Act of 1993 requires that private sector employers to provide eligible employees up to 12 weeks of unpaid leave if the firm has: (A) 25or more employees. (B) 50or more employees. (C) 100 or more employees. (D) 500 or more employees. (E) 1,000 or more employees.

50 or more employees

​In 2014, ___ percent of private-sector union members participated in some type of employer- or union-sponsored pension plan compared to 45 percent of nonunion employees. (A) 18 (B) 25 (C) 63 (D) 83 (E) 93

83

The act that was amended in 1987 to prohibit any mandatory retirement age, with the exception of airline pilots, using 70 as a mandatory retirement age is the: (A) Employee Retirement Income Security Act (ERISA) of 1974. (B) Pension Protection Act of 2006. (C) Affordable Care Act. (D) Patient Protection Act. (E) Age Discrimination in Employment Act (ADEA).

Age Discrimination in Employment Act (ADEA)

The labor relations term for a written clause in a labor agreement which adjusts wages in accordance with changes in the consumer price index at specified intervals during the contract's term is the: (A) Cost-of-living adjustment. (B) Wage re-opener. (C) Lump sum pay adjustments. (D) Wage spread. (E) Spillover effect

Cost-of-living adjustment

The federal agency responsible for enforcement of the Family and Medical Leave Act is: (A) Family and Medical Leave Administration. (B) Equal Employment Opportunity Commission. (C) Department of Labor. (D) Federal Standards Board. (E) National Labor Relations Board. Answer : (C

Department of Labor

Which federal agency is responsible for computing and reporting the Consumer Price Index (CPI)? (A) Department of Agriculture. (B) Department of Commerce. (C) Department of State. (D) Department of Labor. (E) Bureau of Labor Statistics

Department of Labor

. The following preliminary conclusions may be reported based on a research on the effects of ESOPs except: (A) Labor-management cooperation does not emerge automatically when publicly traded companies move into employee ownership. (B) Employee ownership leads to greater identification of the employees with the company. (C) The presence of an ESOP does not make a firm more productive, efficient, or profitable. (D) Employees receive less information about the company. (E) Generally, the role of the union does not change except when the union made an early and ongoing effort to become involved in the change process.

Employees receive less information about the company

Management prefers to include the union to conduct job evaluations for employees in a firm A)True B)False

False

The plan to which companies make monetary payments to a specific group or groups of employees for producing more output or generating cost savings beyond some established goal is called a: (A) Gain-sharing plan (B) Profit sharing plan (C) Fee-for-service plan (D) Graded vesting schedule (E) Liberty plan.

Gain-sharing plan

​The process of systematically securing information and facts about what employees do in various jobs is called: (A) ​Job description. (B) ​Job specification. (C) ​Job analysis. (D) ​Job factor. (E) ​Job classification

Job Analysis

​The process of systematically securing information and facts about what employees do in various jobs is called: (A) Job evaluation. (B) Job description. (C) Job analysis. (D) Job survey. (E) Job specifications

Job analysis

On reaching retirement age, a retiree may generally choose to accept an annuity payment (e.g., $10,000 per year for life) based on the value of the account balance or receive a; (A) Golden parachutes distribution. (B) Lump-sum distribution. (C) Skill-based distribution. (D) Secured-income distribution. (E) Guaranteed-salary distribution

Lump-sum distribution

The labor relations term for a one-time payment made to adjust wages which does not affect an employee's hourly base wage rate is: (A) Holiday pay. (B) Wage re-opener. (C) Vacation pay. (D) Lump-sum pay adjustment. (E) Spillover effect

Lump-sum pay adjustment

The clause written into collective bargaining agreements which seeks to maintain pay comparability and pay differentials within firms is called the: (A) Ability to pay clause. (B) Relevant contract clause. (C) Re-opener clause. (D) Nondiscrimination clause. (E) Me-too clause

Me-too clause

All of the following are group incentive plans except: (A) Improshare. (B) Scanlon plan. (C) Piece-rate plan. (D) Rucker plan. (E) Gainsharing programs

Piece-rate plan

​The expected employee output that is consistent with workmanship quality, operational efficiency, and reasonable working capacities of normal operators is called: (A) ​Production standards. (B) ​Performance assessment. (C) ​Negotiated provisions. (D) ​Time studies. (E) ​Job analysis.

Production standards

The plan based on a change in the ratio between labor costs and dollar value added is called the: (A) ​Scanlon plan. (B) ​Improshare plan. (C) ​Skill-base pay plan. (D) ​Rucker plan. (E) ​Production plan

Rucker plan

One of the most popular group incentive plan for sharing labor cost savings is the: (A) Merit savings plan. (B) Profit sharing plan. (C) Piece rate plan. (D) Scanlon plan. (E) Premium pay plan.

Scanlon plan

The plan which bases compensation on the skills or knowledge an employee possesses and is valued by the employer is called the: (A) ​Scanlon plan. (B) ​Improshare plan. (C) ​Skill-base pay plan. (D) ​Rucker plan. (E) ​Production plan

Skill-base pay plan

. It is common for labor agreements to contain a cost-of-living adjustment (COLA) clause during the term of the contract. (A) True (B) False

True

​Contract language that specifies a newly hired employee will be paid less than other employees performing a similar job is referred to as a: (A) ​Skill pay differential. (B) ​Two-tier Wage plan. (C) ​Wage standard. (D) ​Wage comparability. (E) ​Scanlon plan.

Two-tier wage plan

​The relative influence of job evaluation can be seen in the ___________, which represents the internal distribution of the proposed or negotiated wage increase to the bargaining unit employees. (A) Skill-based pay (B) Skill pay differential (C) Wage spread (D) Management's ability to pay (E) Skill-based pay and wage spread

Wage spread

The most common formula for adjusting wages to the cost of living is: (A) Wages increased 3 cents for each 0.1 rise in the CPI-W. (B) A percentage increase in wages for each percentage increase in the CPI-W. (C) Wages increased 1 cent-per-hour increase for each 0.3 point increase in the CPI-W. (D) Wages increased 1 cent for each 0.2 rise in the CPI-W. (E) Wages increased 4 cent-per-hour increase for each 0.3 point increase in the CPI-W.

Wages increased 1 cent-per-hour increase for each 0.3 point increase in the CPI-W

. Supplemental unemployment benefits (SUB) are payments made by the federal government to unemployed workers during a layoff. (A) True (B) False

false

Labor market wage surveys measure how the job content, method of payment, regularity of employment, supplemental unemployment benefits, vacations, pensions, and holidays vary from company to company. (A) True (B) False

false

Most unions consider gain sharing plans as an adequate substitute for traditional negotiated hourly wage gains in their labor contracts A)True B)False

false

Pressure from domestic and international competition has increased management's ability to simply pass increased labor costs on to the customer in the form of higher prices A)True B)False

false

The majority of private sector employees participate in a profit sharing plan as incentive A)True B)False

false

Unions generally favor the use of an employee stock ownership plan (ESOP) as a basic pension plan for employees. (A) True (B) False

false

Unions often prefer defined contribution plans because it limits their financial obligations to fund the plan. (A) True (B) False

false

Wage comparability is not given much importance in wage determination (A) True (B) False

false

​A major reason for a piece-rate compensation plan is that many production jobs are machine paced, so employees have limited control over the pace of work and thus the number of items produced during scheduled work hours. (A) True (B) False

false

​The process of systematically securing information and facts about what employees do in various jobs is called a job description. (A) True (B) False

false

A Scanlon plan, Rucker plan, and Improshare plan are all examples of gain sharing plans. (A) True (B) False

true

A higher degree of labor intensiveness increases management negotiators' resistance to bargaining proposals designed to increase wage rates. (A) True (B) False

true

Contract language that specifies a newly hired employee will be paid less than other employees performing a similar job is referred to as a Two-Tier Wage plan A)True B)False

true

If a union wishes to encourage solidarity within its membership at a particular firm, it should not negotiate for a two-tier pay plan. (A) True (B) False

true

Most union labor agreements specify daily or weekly work schedules and most provide premium pay for hours worked beyond the normal hours. (A) True (B) False

true

Skill-based pay (SBP) systems base compensation on the skills or knowledge an employee possesses that are valued by the employer A)True B)False

true

The monetary value of employee benefits provided by unionized employers exceeds the value of employee benefits provided by nonunion employers. (A) True (B) False

true

The term "value added" refers to the contribution of factors of production to the value of a final product or service. (A) True (B) False

true

Union leaders often view management-exclusive job evaluation with disfavor because it tends to limit bargaining opportunities and freeze wage structure. (A) True (B) False

true

Wages and other economic benefits represent income to employees, costs to an employer, and a basis for tax revenue to the government A)True B)False

true

​A deferred wage increase is a method used to adjust employee base wage rates during the term of a labor agreement. (A) True (B) False

true

​During economic downturns and recessions, management will often claim an inability to pay as a criterion for wage determination. (A) True (B) False

true

​Job factors used in evaluating jobs include skill, effort, responsibility, and working conditions in varying degrees depending on the type of organization. (A) True (B) False

true

The labor relations term written to permit wages to be renegotiated at a specified point in time during the term of the contract or whenever some predetermined event occurs is the: (A) Lump-sum pay adjustments. (B) Cost-of-living adjustment. (C) Wage re-opener. (D) Open-ended contract. (E) Spillover effect

wage re-opener