Union-Management Relations Final chapters 7 - 12

What is arena bargaining?

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Describe the various methods of combining the seniority lists of merged companies.

1. One of the most commonly used methods is the Surviving group principle, in which seniority lists are merged by adding the names of the employees of the acquired company to the bottom of the acquiring company. Thus, all the employees of the acquiring company receive greater seniority consideration than any employee of the acquired company. 2. Another method, the length of service principle, is used when an employee's length of service is considered, regardless of which company he or she worked for before the merger; therefore, the two seniority lists are combined, with no employee losing any previously earned seniority. 3. With the follow the work principle, employees are allowed to continue previously earned seniority on separate seniority lists when their work with the merged company can be separately identified. 4. The absolute rank principle gives employees rank positions on the merging seniority lists equal to their rank position on the prior seniority lists. Therefore, two employees are ranked first, followed by two ranked second, followed by two ranked third, and so on. 5. The ratio-rank principle combines seniority lists by establishing a ratio based on the total number of employees in the two groups to be merged.

As per the Employee Retirement Income Security Act (ERISA), employers are required to count toward vesting all service from age ________ and to count toward earned benefits all earnings from age ________.

18; 21

Compare defined benefit plans and defined contribution plans.

A traditional defined benefit plan on retirement provides a stipulated, fixed amount of income, usually paid monthly. The exact amount is determined by a benefit formula and is based on years of service and base pay. The amount of the retirement is fixed and the employee knows the amount. The second traditional type of plan is a defined contribution plan, which is less common in labor contracts but far more common in nonunion employers. Under these plans, the employer makes a specified dollar contribution to an account in a managed fund, and the retirement benefit depends on the investment gains or losses by the fund. There is no way to know how much the plan will ultimately give the employee upon retiring. The amount contributed is fixed, but the benefit is not.

Describe the various unlawful means of conducting a strike.

A. Sit-down strike: It involves a takeover of the employer's property. This action is seen as a violation of the owner's property rights. B. Wildcat strike: It is an economic strike conducted by a minority of the workers without the approval of the union and in violation of a no-strike clause in an existing contract. Although courts try to discourage such actions to ensure the continued credibility of the union, these strikes may be sanctioned if actually called to protect one of the union's aims. C. Partial strike: It involves various types of job actions, such as a work slowdown or refusal to work overtime. This action is seen as a violation of the owner's property rights. D. Sickout: An illegal partial strike in which employees call in sick to protest a working condition.

Under which of the following conditions does an employee become eligible for supplemental unemployment benefits?

After having worked for three years in a company, Samantha lost her job because the employer decided to shut down the plant.

Under which of the following circumstances is the NLRB most likely to overturn a representation election?

An employee who does not support the union is threatened by a union organizer.

With reference to union solicitation, which of the following employer actions is considered an unfair labor practice?

An employer allows its employees to access its bulletin board, but prohibits union solicitation material from being displayed on the board.

________ is a process in which the parties involved agree to submit an unresolved dispute to a neutral third party, whose decision is final and binding.

Arbitration

Which of the following is an advantage of arbitration over the litigation process?

Both labor and management participate in the selection of the arbitrator.

Which of the following laws provides for the continuation of medical and dental insurance for employees, spouses, and dependents in the event of termination of employment, death of the employee, divorce, legal separation, or reduction of hours, which results in the loss of group health plan eligibility?

Consolidated Omnibus Budget Reconciliation Act

The ________ of 1931 regulates employers who hold federal government contracts of $2,000 or more for federal construction projects.

Davis-Bacon Act

An Employee Assistance Program (EAP) is similar to a 401(k) pension fund in that an employer contributes a fixed amount of tax-deferred money into an account for the employee to use for medical expenses

False

Even in labor-intensive organizations, the labor costs rarely rise above 20 percent of the total costs.

False

Front-end loading is a method of providing a general wage increase as a onetime payment rather than adding the increase to the hourly or annual salary of the employee.

False

Health insurance is a legally required benefit that must be provided by an employer to all its employees.

False

Job evaluation is the process of analyzing employee performance.

False

Pyramiding is a pay incentive system in which employees receive a share of the employer's profits in addition to their regular wages.

False

The base compensation given to an employee includes overtime, pension benefits, and bonuses.

False

The conveying of employees' nonforfeitable rights to share in a pension fund is termed pyramiding.

False

The first step in determining compensation costs is to determine the value of the pension benefits.

False

The health maintenance organizations (HMOs) included in health insurance benefits provide specific services at a discount in exchange for a guaranteed number of patients.

False

The ratio-to-work plan provides all workers with the same length of vacation.

False

Describe the various types of paid vacation plans.

Four types of paid vacation plans are commonly negotiated: the graduated plan, the uniform plan, the ratio-to-work plan, and the funded plan. 1. Graduated plan: By far the most popular type of plan is the graduated plan, which provides an increase in the number of weeks of vacation according to length of service. 2. Uniform vacation plan: The uniform vacation plan provides all workers with the same length of vacation. This is most commonly found in manufacturing firms. 3. Ratio-to-work plan: The ratio-to-work plan, commonly found in the printing and transportation industries, relates the length of vacation to the number of hours or days the employee works during a given time period. 4. Funded plan: The funded plan requires employers to contribute to a vacation fund from which employees may draw vacation pay during periods when no work is available. This is most often found in the construction and apparel industries.

________ refers to a deferred wage increase in which a larger proportion of the total increase occurs in the first year of a multiyear contract.

Front-end loading

Which of the following statements is true of a Scanlon plan?

It is a group incentive plan in which accrued savings resulting from increased efficiency are distributed among the workers and the employer.

Which of the following statements is true of a two-tier wage system?

It is a wage system that pays newly hired workers less than current employees performing the same or similar jobs.

The ________ Act provides for the arbitration of disputes involving collective bargaining agreements.

Labor Management Relations

A(n) ________ agreement is an agreement between the union and the employer that allows an employee who was fired for misconduct his job back with the condition that if the employee violates the agreement he will be discharged without right of an appeal.

Last chance

In the case of job bidding, a bid from one classification to another classification in the same pay grade is known as a(n) ________.

Lateral bid

An employer's refusal to process grievances is a violation of the ________.

National Labor Relations Act

Unfair labor practices are certain actions taken by employers or unions that violate the ________.

National Labor Relations Act

What is parol evidence?

Parol evidence in labor arbitration cases refers to evidence, oral or otherwise, that is not contained within the four edges of the collective bargaining contract. In other words, it is evidence of discussions or writings that happened prior to or outside of the bargaining process that are not referenced in the final collective bargaining agreement itself.

Discuss the Davis-Bacon Act

Passed in 1931, was another attempt to support the fledgeling union movement. who used union labor did not lose their competitive advantage when bidding on federal jobs by paying their workers union wages.

________ refers to a collective bargaining practice in which a national industry or union strives to establish equal wages and benefits from several unions or employers in the same industry.

Pattern bargaining

________ is a practice where union officials pressure organizers into disclosing sensitive personal information. This information is recorded on a piece of paper and then the organizers are strongly urged to tell their personal stories of abuse or neglect to workers they were trying to organize in order to gain their support.

Pink sheeting

________ pay is the minimum payment guaranteed to employees who come in to work even if work is not available, if they have not been informed otherwise.

Reporting

________ arbitration is also known as grievance arbitration.

Rights

The direct increase in benefits caused by a negotiated wage increase is referred to as the ________.

Roll-up

Which of the following terms refers to a group incentive plan in which accrued savings from increased efficiency are distributed among the workers and the employer?

Scanlon Plan

In unionized organizations, agreements often specify ________ as the sole decision criterion in layoff and recall situations. This method is generally promoted by employees but not favored by employers.

Seniority

A "seniority system" within a company is a set of rules governing the allocation of economic benefits and opportunities on the basis of ________.

Service with one employer

________ pay is given to workers available to be called in if needed.

Standby

Union officers and committee personnel may be given preferred seniority rights for layoff and recall situations. This is referred to as ________.

Superseniority

Which of the following statements is TRUE regarding a Voluntary Employees Beneficiary Association (VEBA)?

The assets created using the contributions made to a VEBA are protected from creditors in case of employer bankruptcy.

Which of the following statements is TRUE of arbitrators?

The collective bargaining agreement can specify the education or technical training that arbitrators require.

Which of the following is TRUE of arbitration?

The courts determine whether there is a duty to arbitrate a dispute.

Under which of the following circumstances does a labor-management issue become arbitrable even after the collective bargaining contract expires?

The issue involves facts and events that occurred before the expiration of the contract.

Which of the following points should be kept in mind by an arbitrator while assessing credibility of witnesses?

The occupation or social class of a witness does not guarantee veracity.

What is job bidding?

The process of a company posting notices of new job positions to give permanent employees the opportunity to apply is known as job bidding. Bids are based on plant seniority and competency and fall into three categories: 1. Up-bid: It is a bid from a lower to a higher pay grade. 2. Down-bid: It is a bid from a higher to a lower pay grade. 3. Lateral bid: It is a bid from one classification to another classification in the same pay grade.

Under which of the following circumstances is a successor employer considered to be guilty of an unfair labor practice?

The successor employer refuses to hire existing employees due to their union status.

Which of the following is a major disadvantage of grievance mediation?

There is a possibility that the process of mediation will not lead to any settlement.

According to the Pension Reform Act, employers are required to count toward vesting all service from age 18 and to count toward earned benefits all earnings from age 21.

True

Both employees and employers make tax deductible contributions to a Health Savings Account (HSA).

True

Front-end loading refers to a deferred wage increase with a larger proportion of the total percentage increase in the first year of the agreement.

True

In a typical flexible benefit plan, employees are allowed to choose the benefits they believe will best meet their needs

True

Payback agreements require an employee who voluntarily quits before a specified period of time to pay the employer the cost of certain benefits.

True

Severance pay is a lump sum or a dispersal of payments given to employees who are permanently separated from the company through no fault of their own.

True

The payment of overtime on overtime that occurs if the same hours of work qualify for both daily and weekly overtime payment is known as pyramiding.

True

The value of the cost of living adjustments (COLAs) is usually based on the consumer price index.

True

Under a defined benefit plan, the amount of retirement benefit that would be received by an employee is fixed and the employee knows the amount.

True

Which of the following statements is TRUE of a defined contribution plan?

Under a defined contribution plan, the amount of retirement benefit that would be received by an employee is not fixed.

The conveying of employees' nonforfeitable rights to share in a pension fund is termed ________.

Vesting

A ________ Association is an organization for members who have an employment-related common bond, or coverage under one or more collective bargaining agreements, or membership in a labor union, to pay life, sick, accident, and similar benefits.

Voluntary Employees Beneficiary

What is a last chance agreement?

When an employee's misconduct becomes unacceptable, a last chance agreement (LCA) among the employer, union, and employee can be negotiated.the written agreement describes the conduct that led to the potential termination, specific policy violations, and specific work requirements that if not met will lead to termination in the future, as well as the employee's forfeit of arbitration or litigation rights. The agreement may include an expiration date.

A ________ strike refers to an economic strike conducted by a minority of the workers without the approval of the union and in violation of a no-strike clause in an existing contract.

Wildcat

The ________ clause is a provision of a collective bargaining agreement that restricts either party from requiring the other party to bargain on any issue that was not previously negotiated in the agreement for the term of the contract.

Zipper

What is a pension?

a guaranteed monthly payment to a former employee during retirement

A wage employment guarantee refers to a contract negotiation that assures employees ________.

a minimum amount of work or compensation during a specified amount of time

With reference to union activities, a "salt" is ________.

a paid union organizer who secures a job in a workplace in order to organize a union

Which of the following is the last step of a grievance procedure in most collective bargaining agreements?

accepting an arbitrator's decision

Which of the following is a mandatory subject for collective bargaining?

alcohol and drug testing of current employees

When the surviving group principle is used for combining the seniority lists of merged companies, ________.

all the employees of the acquiring company receive greater seniority consideration than any employee of the acquired company

Which of the following terms refers to the employer's conduct that is not motivated, or at least not entirely motivated, by legitimate and substantial business reasons, but by a desire to penalize or reward employees for union activity or lack of it?

antiunion animus

A(n) ________ plan is a type of defined-benefit pension plan under which an employer credits a participant's account with a set percentage of his or her yearly compensation plus interest. The investment performance of the fund does not affect the final benefits to be received by the participant upon retirement.

cash balance

Under ________ plans, the employer contributes a fixed percentage of workers' income to a hypothetical account and guarantees it will grow at a fixed rate.

cash balance

Which of the following terms refers to a type of bargaining that involves negotiating reductions in previously negotiated wages, benefits, or work rules, usually in exchange for management-guaranteed employment levels during the term of a contract?

concession bargaining

Cost of living adjustments are generally based on the value of the ________.

consumer price index (CPI)

A(n) ________ is an employer-sponsored retirement plan in which employee benefits are paid based on a formula using factors such as salary and duration of employment. The amount of the retirement is fixed and the employee knows the amount.

defined benefit plan

In the case of a grievance procedure, at which stage are most grievances containing little merit dropped?

discussing the grievance with the supervisor after it is put in writing

Discuss the Weingarten Rule.

employees under Section 7 of the NLRA are entitled to have a union representative present during an investigatory interview where the employee fears the interview may result in their receiving discipline.The employer cannot request that the union representative remain silent during the interview. The union representative may advise the employee against answering questions that are perceived to be abusive, misleading, badgering, confusing, or harassing.

Which of the following is most likely to be considered a minor offence?

failure to attend meetings

Which of the following refers to a deferred wage increase in which a larger proportion of the total increase occurs in the first year of a multiyear contract?

front-end loading

In the day-to-day administration of a collective bargaining agreement, the majority of time is spent on ________.

grievance handling

Which of the following employee benefits involves an employer contributing a fixed amount of tax-deferred money into an account for the employee to use for medical expenses?

health reimbursement arrangement

Wellness programs are designed to ________.

identify and reduce risky employee behaviors, such as smoking

Which of the following is a Federal Mediation and Conciliation Services' guideline for grievance mediation?

if the parties cannot resolve the problem, the mediator may provide the parties in joint or separate session with an oral advisory opinion.

If a genuine change of employer exists but the employing industry remains substantially the same, the successor employer ________.

is required to recognize the existing collective bargaining unit and its representative, but is not bound by the agreement

Which of the following terms refers to a systematic method of determining the worth of a job to an organization?

job evaluation

Which of the following is usually the largest single cost incurred by most corporations?

labor cost

A committee or group is generally considered a ________ if employees participate in it and at least one purpose is to deal with the employer on issues of grievances, labor disputes, wages, work rules, or hours of employment.

labor organization

Which of the following terms refers to a method of providing a general wage increase as a onetime payment rather than adding the increase to the hourly or annual salary of the employee?

lump-sum payments

As per the Fair Labor Standards Act, an employee is most likely to be considered eligible for receiving overtime pay if the employee ________.

makes a salary of less than $455 per week

A tripartite arbitration board is composed of ________ and a neutral member who serves as chairperson.

members selected by management and an equal number of members selected by union

The primary goal for most management negotiators in bargaining is to ________.

minimize the cents-per-hour direct wage increase

The 24-hour rule prohibits ________ within 24 hours of a scheduled election.

organizational campaign speeches on company time

Which of the following terms refers to a doctrine that advocates one standard wage rate for each job and all employees who perform it?

pay equity

Apex Motor Inc. pays $5 to its workers per unit produced. Which of the following wage systems does the company use in this case?

piece-rate system

A long-standing NLRB precedent provides that an employer who entertains a good-faith reasonable doubt whether a majority of its employees support an incumbent union can ________.

request a formal board-supervised election

The income provided to employees who have been permanently terminated from the job through no fault of their own is known as the________.

severance pay

Which of the following benefits was designed to provide supplemental income to retired workers?

social security

Which of the following factors is most likely to be considered by an arbitrator while resolving a case of employee misconduct?

the employee's length of service with the company

Which of the following factors is most likely to be a predictor of the success of a team within an organization?

the level of autonomy provided to a team

Under a piecework system, employees are paid depending on ________.

the number of units produced

Which of the following is most likely to be included in the opening statement presented by a party during a hearing procedure for the arbitration of a grievance?

the relief sought by the party

According to the value-added theory, ________.

the wages of the employees should equal the contribution of labor to the final product

Payback agreements require an employee ________.

to pay the employer the cost of certain benefits if he/she voluntarily quits before a specified period of time

Which of the following is a means of attaining grievance resolution at the lowest possible level?

using feedback from previous grievance cases

For most employers, the greatest labor costs are incurred in the form of ________.

wages and salaries

Which of the following types of benefits is designed to protect employees and their families against permanent loss of income and high medical bills because of accidental injury or illness on the job?

worker's compensation