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A union security clause in a labor-management agreement stipulates that employees who benefit from a union must either officially join or at least pay dues to the union.

A) True
B) False

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Dr. Kwan, a professor at a university, has been working with the union leaders and management at Empire Corporation to help the two sides resolve differences over desired wage levels for a new contract. First, he met with each side privately to determine any common ground for agreement. For the past week, he has worked with representatives from each side to promote communication and compromise at the bargaining table. Dr. Kwan is a(n) :


A) arbitrator.
B) mediator.
C) fact finder.
D) shop steward.

E) None of the above
F) A) and B)

Correct Answer

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___________ are workers a company hires to replace workers who are out on strike.


A) Yellow dogs
B) Convergent workers
C) Structural replacements
D) Strikebreakers

E) None of the above
F) B) and C)

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The largest labor organization in the U.S. is the National Education Association (NEA).

A) True
B) False

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Which of the following statements best summarizes the extent to which unions currently rely on strikes as a tactic when collective bargaining breaks down?


A) Unions have become increasingly reliant on strikes as other, less confrontational, tactics have proven unsuccessful.
B) Some highly visible strikes in recent years show that the strike is not dead as a labor tactic, but very few labor disputes actually lead to a strike.
C) Unions have almost completely avoided strikes since President Reagan replaced striking air traffic controllers with strikebreakers in 1981.
D) Strikes organized by unions are now less common than lockouts by management, indicating a major shift in attitudes between labor and management.

E) A) and B)
F) B) and D)

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Although workers and managers often know that their firm has a policy against sexual harassment, they seldom have a clear understanding of what the policy actually says.

A) True
B) False

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One strategy unions must adopt in order to grow in the future is to:


A) find ways to appeal to white-collar, female, and foreign-born workers.
B) find ways to prevent foreign companies from entering the U.S. market.
C) go back to the old methods of aggressive tactics and confrontation that were used successfully in the past.
D) emphasize recruiting efforts in the manufacturing sector of the economy.

E) B) and D)
F) All of the above

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In recent years some unions have granted concessions and given up benefits secured in earlier contract negotiations in an attempt to save jobs. These concessions are called:


A) injunctions.
B) givebacks.
C) buyouts.
D) disbenefits.

E) C) and D)
F) B) and D)

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Over the next decade costs associated with elder care are likely to have a much smaller impact on businesses than childcare costs.

A) True
B) False

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A comparison of compensation of CEOs in the U.S. with compensation of top executives in Canada and Europe indicates that:


A) U.S. CEOs are working for much lower compensation.
B) pay for CEOs at major corporations is about the same in all of these nations.
C) executives in the U.S. are compensated at a much higher rate.
D) U.S. executives are paid better than average when their firms are successful, but worse than average when their firms struggle.

E) A) and B)
F) A) and C)

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Mini-Case The workers at Endrun Corporation are not affiliated with a union. Until recently, the workers felt they were well paid and treated fairly by the company, so they had little interest in seeking union representation. However, worker morale at Endrun has declined steadily since the board of directors fired the old CEO last year and replaced him with Ty Runt, a no-nonsense, autocratic manager with a reputation for cutting costs. As soon as he took over, Ty fired other members of the old top management team and replaced them with people who shared his views. Together, the new management team made a series of moves that did not sit well with Endrun's workers. First, they announced changes in work procedures designed to speed up the production line. Many workers complained that the new methods cut corners and were unsafe, but management refused to listen. A few months after changing work methods, the company told workers that it was reducing their health benefits. This led to even greater worker unrest. Finally, just a few weeks ago, workers received word that the wages of all production-line employees would be cut by 6 percent. Many employees felt this was the last straw, especially since the company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management team. A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to reduce costs, increase productivity, and improve the company's profits." Several disgruntled employees, led by Ima Striker and Boyd Cotter, now believe it is time to obtain union representation. Top managers at the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the company decides to downsize. Ima and Boyd are not intimidated by these management threats. "I wish we didn't have to do this," Ima recently told many of her fellow workers at the plant. "But someone has to stop Ty Runt and his team from ruining our jobs." -Ty Runt has always taken a hard line against unionization efforts. Two years ago, when workers at his previous company tried to obtain union representation, the company closed down the plant and refused to let employees work until they abandoned their efforts to form a union. This management tactic is called a(n) :


A) management strike.
B) secondary boycott.
C) injunction.
D) lockout.

E) None of the above
F) B) and C)

Correct Answer

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The Supreme Court ruled in 1938 that employers had the right to hire strikebreakers.

A) True
B) False

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The initial objective of the American Federation of Labor (AFL) was to provide union membership to workers in all industries.

A) True
B) False

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Jenna is a member of a union team that is negotiating with management to obtain a labor contract for the workers represented by the union. Jenna is involved in contract arbitration.

A) True
B) False

Correct Answer

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__________ is the process by which a union becomes recognized by the National Labor Relations Board as the bargaining agent for a group of employees.


A) Accreditation
B) Certification
C) Arbitration
D) Affiliation

E) A) and D)
F) B) and C)

Correct Answer

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Recently a disgruntled employee walked into a large grocery chain's midwest distribution center and opened fire on his fellow workers. He killed or injured several people before being killed by the local police. The grocery chain is very concerned about the threat of workplace violence in the future. One way to deal with this threat is for management to hold focus groups to invite employee input. Another way is to make certain that the company hires managers with good interpersonal skills.

A) True
B) False

Correct Answer

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Strikes have been an effective way of settling labor disputes without violence and bitterness.

A) True
B) False

Correct Answer

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A(n) ___________ occurs when management temporarily closes a business to deny employment to workers.


A) lockout
B) secondary boycott
C) involuntary strike
D) employment injunction

E) A) and B)
F) B) and C)

Correct Answer

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As the workforce of the U.S. ages, a greater percentage of workers will have to concern themselves with:


A) finding care for their children.
B) caring for older relatives.
C) the educational benefits of downsizing.
D) transportation issues.

E) A) and C)
F) B) and D)

Correct Answer

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During an interview with Zytex company representative, Hillary was told that Zytex faces intense competition and management believes that the only way the company can survive is to have a nonunion workforce. Therefore, all workers Zytex hires must sign an employment contract stating that they agree not to join a union while they work for Zytex. This requirement by Zytex is illegal in the United States.

A) True
B) False

Correct Answer

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