Exam 15: Union Role in Wage and Salary Administration

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Single rates are not usually specified for workers within a particular job classification.

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Briefly summarize lump-sum awards and ESOPs.

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Lump-Sum Awards: Lump-sum awards are one-time cash payments to employees that are not added to an employee's base wages.These awards are typically given in lieu of merit increases, which are more costly to the employer.This higher cost results both because merit increases are added on to base wages and because several employee benefits are figured as a percentage of base wages.Lump-sum payments are a reality of union contracts.For the past 10 years, a stable one-third of all major collective bargaining agreements in the private sector have contained a provision for lump-sum payouts.Employee Stock Ownership Plans (ESOPs): An alternative strategy for organizations hurt by intense competition is to control base wages in exchange for giving employees part ownership in the company.

What are the reasons for the decline in unionization?

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Four popular explanations are usually offered for the decline in unionization: (1) The structure of American industry is changing, and declining industries are most heavily unionized, while growing industries are less so.(2) Unionization may be declining because workers do not view unions as a solution to their problems.(3) There has been reduced intensity of union organizing efforts.(4) Management is taking an increasingly hard stance against unions in general and union demands in particular.

Many contracts specify a premium be paid above the worker's base wage for working nonstandard shifts.

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Unions respond relatively rapidly to wage increases during inflationary periods.

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Which of the following is a reason for unions opposing gain-sharing plans?

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About 60 percent of all U.S.collective bargaining agreements permit some alternative reward system that links pay to performance.

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Voluntary benefits account for nearly 37 percent of the total compensation package for unionized workers.

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In automatic progression, seniority is used as the basis for movement through the job classifications.

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Lower-tier employees in a two-tier pay plan, those hired after the contract is ratified, receive wages 50 to 80 percent lower than employees in the higher tier.

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What is meant by automatic progression?

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Introduction of a gain-sharing plan is particularly effective when union members participate in plan development.

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Which of the following statements regarding unions is NOT true?

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The phenomenon where the nonunion management continues to enjoy the freedom from union "interference" in decision making, and the workers receive the rewards already obtained by their unionized counterparts is known as _____.

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Lump-sum awards are added to base wages.

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Moving employees through pay ranges using merit increases is more popular than automatic progression.

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MaxTrain Corp.recognizes that its competitor GlasWell Corp., which is unionized, offers higher wages and benefits.To avoid unionization demands from its workers, MaxTrain decides to offer the same wages and benefits to its employees as GlasWell.Which of the following phenomena is exemplified in this case?

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Pay-for-knowledge plans do all of the following EXCEPT _____.

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_____ is movement through the wage ranges where seniority is specified as the basis of the movement.

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A deferred wage increase _____.

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