ch 15

A firm may adopt a strategy to remain nonunion as part of which it may offer high wages to its employees so that wages do not become an issue that unions could use to organize the firm's employees. This is known as the _____.

spillover effect on wages

Ferrite Mold Corp., an iron and steel company, is a unionized organization. In addition to base wages and mandatory benefits, Ferrite Mold also incorporates variable pay components into its compensation plans. Its employees are paid overtime pay for extra hours worked and are given incentives for distinguished performance. To prevent unionization, Sterlite Steel Inc., a competitor of Ferrite Mold, offers a similar pay structure and benefits to its employees. In this scenario, Sterlite Steel faces no opposition to its policies, and its employees receive wages and benefits that are similar to those received by employees of Ferrite Mold. This can be considered an example of the ____________

spillover effect

Reopener clause

states that wages and benefits such as pensions would be renegotiated at a predetermined time or under specific circumstances. This states that wages and benefits such as pensions would be renegotiated at a predetermined time or under specific circumstances.

The Dune Inc., a publishing company, has adopted a compensation strategy that involves providing low base wages to employees and, in exchange, offering them shares in the company. The management has implemented this strategy with the aim of aligning employee interests with those of the company. In this scenario, the company has adopted a(n) _____.

employee stock ownership plan

One-time cash remittances made out to employees that are not included in employees' base pay are called - .

lump sum awards

Dream Homes, a construction company, has implemented a compensation plan in which employees are given a percentage of the company's financial gains in lieu of wage increases. This plan allows the company to have labor costs that vary with the company's prosperity and its ability to pay employees. In this scenario, Dream Homes has implemented a(n) _____.

profit-sharing plan

Identify a feature of gain-sharing plans.Which of the following is meant to coordinate workers and management in order to streamline operations and reduce cost?

Cost savings that are a result of employees' efficiency are split between an organization and its employees.

Which of the following are wage adjustment provisions specified in multiyear contracts? (Check all that apply.)

Cost-of-living adjustments Reopener clauses Deferred wage increases

In the context of experience/merit differentials in labor agreements, which of the following represents a type of movement through wage ranges in which the contract repeatedly specifies the time period between movements?

Automatic progression

True or false: The impact of unions is smaller during periods of high unemployment.

False

True or false: Unions are opposed to pay-for-knowledge plans as they make workers more expendable to an organization.

False

Identify the explanations that are usually offered for the decline in unionization among private sector workers. (Check all that apply.)

Management is increasingly opposing unions and their demands. Union organizing efforts have reduced. The declining industries in America are the most heavily unionized.

Which of the following plans pays employees more for learning various new skills?

Pay-for-knowledge plans

Cost-of-living adjustment

This involves periodic adjustments based on variations in the consumer price index.

Deferred wage increase

This is agreed upon during the preliminary contract negotiations, with the timing and amount mentioned in the contract. This is agreed upon during the preliminary contract negotiations, with the timing and amount mentioned in the contract.

Evergreen Investments, an investment firm, offers its employees above-market wages and several benefits such as health care coverage, daycare facilities, flexible working hours, and retirement insurance among others and provides them with an inclusive work environment. The management aims to avoid unionization by offering employees similar or better wages and benefits than those provided in rival unionized firms. This scenario illustrates the _____.

spillover effect

The impact caused by unions on nonunion firms is called .

spillover effect

Management has shown opposition toward unionization by _____.

using temps to prevent the formation of unions

Identify a feature of gain-sharing plans.

Cost savings that are a result of employees' efficiency are split between an organization and its employees.

weak economy

Union-nonunion gap is larger

strong economy

Union-nonunion gap is smaller

One of the issues concerning the impact of unions on the structuring of pay packages is _____.

the distinction between direct wages and benefits

In order to keep labor costs low, Molchrome Pharma Inc., a pharmaceutical company, adopts a compensation strategy in which base wages are kept low and employees are paid a portion of the profits. This strategy allows Molchrome Pharma to pay its employees a bigger share of its profits during good profit years and lower profit payouts in bad profit years. In certain cases, the company defers profit distribution until retirement. In this scenario, Molchrome Pharma's strategy is an example of a(n) _______________ plan.

profit sharing

Which of the following are impacted by unions? (Check all that apply.)

Nonunion firms Structure of wages Pay policies and practices in unionized firms Wage and benefit levels

The opposition of management to unions is driven by _____.

rising pressure from domestic and international competitors

Which of the following is true of lump-sum awards?

They are given to employees in place of merit increases.

Which of the following is a feature of two-tier pay plans?

They initially became popular as they were viewed as being less painful than pay freezes and staff cuts.

Clover Apparels Inc., a clothing company, adopts a compensation strategy in which base wages are kept low and employees are given part ownership in the company in return. The wage control strategy followed by Clover Apparels is an example of a(n) _____.

employee stock ownership plan

__________agreements do not consider seniority or merit while distinguishing wages.

single rate

Which of the following is meant to coordinate workers and management in order to streamline operations and reduce cost?

Gain-sharing plans