Chapter 15

Question 1

Which of following regarding unions is not true?
A) Since 1980 unions have experienced lower than normal wage increases
B) 40 percent of workers say they would vote for a union to get their needs met.
C) Since 1997, there has been a small increase in union election victories.
D) unionization is larger in the private than public sector

Answer 1

unionization is larger in the private than public sector

Question 2

Over 70 percent of workers who feel management has little concern for their welfare and is unwilling to share power would vote for a union.
A) TRUE
B) FALSE

Answer 2

TRUE

Question 3

Which of the following statements regarding union wages is true?
A) union versus non-union wage differences are largest in the utilities industry
B) the size of the pay gap between union and non-union varies year-to-year
C) pay differences between union and non-union firefighters is small
D) unions acceptance of lump-sum pay increases has increased their pay advantage over non-union

Answer 3

the size of the pay gap between union and non-union varies year-to-year

Question 4

Moving employees through pay ranges using merit increases is less popular than automatic progression.
A) TRUE
B) FALSE

Answer 4

True

Question 5

The gap between worker and manager wages is approximately \_\_\_\_\_\_\_\_\_\_\_\_\_ in union versus non-union firms.
	A)	25 percent larger
	B)	10 percent larger
	C)	25 percent smaller
	D)	10 percent smaller

Answer 5

25 percent smaller

Question 6

All of the following are true of two-tier wage systems except __________
A) it was originated by management to reduce compensation costs
B) it violates basic union principles
C) new employees are paid more than longer tenure employees
D) inequity is a common result of two wages systems

Answer 6

new employees are paid more than longer tenure employees

Question 7

Lump-sum awards are typically given because they are more visible and appreciated than merit increases.
A) TRUE
B) FALSE

Answer 7

TRUE

Question 8

The least common method of movement through a pay progression is ________________
A) automatic progression
B) exclusively merit
C) seniority to pay grade midpoint, then merit
D) exclusively merit

Answer 8

exclusively merit

Question 9

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

Answer 9

encouragement to subcontract work

Question 10

Foreign competition has lead unions to be more receptive to alternative reward systems.
A) TRUE
B) FALSE

Answer 10

TRUE

Question 11

Today, collective bargaining is a major force mainly in the \_\_\_\_\_.
	A)	foreign sector
	B)	public sector
	C)	business sector
	D)	private sector

Answer 11

B) public sector

Question 12

One dimension of the wage structure issue involves _____.
A) union versus nonunion members’ preferences
B) the division between employee skills and job requirements
C) the relationships between worker wages and their managers’ pay
D) the division between task difficulty and working conditions

Answer 12

C) the relationships between worker wages and their managers’ pay

Question 13

Which of the following statements about automatic progression is false?
A) Within these contracts, it is common to specify that disputed appraisals may be submitted to grievance.
B) This type of progression is most appropriate when the necessary job skills are within the grasp of most employees.
C) Denial of a raise is rare and frequently is accompanied by the right of the union to grieve the decision.
D) It is the movement through the wage ranges where seniority is specified as the basis.

Answer 13

A)Within these contracts, it is common to specify that disputed appraisals may be submitted to grievance.

Question 14

Which of the following is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract?
	A)	An escalator clause
	B)	A COLA clause
	C)	A reopener clause
	D)	A deferred wage increase

Answer 14

D) A deferred wage increase

Question 15

Which of the following statements about gain-sharing is true?
A) Until the plan is actually implemented, it is unclear what the impact will be in any particular firm.
B) Unions directly oppose gain sharing, at least initially.
C) Gain-sharing plans are designed to align workers and management in efforts to decentralize operations and cut costs.
D) Unions are generally always enthusiastic about gain sharing.

Answer 15

A) Until the plan is actually implemented, it is unclear what the impact will be in any particular firm.

Question 16

In a nonunion firm, compensation managers will not adjust rewards even when there is a hint of nearby union activity.
A) True
B) False

Answer 16

False

Question 17

Unionized employees have a greater percentage of their total wage bill allocated to employee benefits.
A) True
B) False

Answer 17

A)True

Question 18

The vast majority of clauses specifying incentive pay occur in manufacturing (as opposed to nonmanufacturing) industries.
A) True
B) False

Answer 18

True

Question 19

Single-rate agreements differentiate wages on the basis of seniority and merit.
A) True
B) False

Answer 19

False

Question 20

To minimize bias by the company, performance measures more often tend to be subjective in unionized companies.
A) True
B) False

Answer 20

False

Question 21

What are 4 areas of Union impact on compensation?

Answer 21

1. general wage and benefit levels
2. structure of wages
3. impact on nonunion firms (spillover effect)
4. wage and salary policies and practices