Appendix I: Labor Unions and Collective Bargaining
TRUE/FALSE
1.A craft union consists of workers who possess the same skill or are in the same profession.
ANS:TDIF:LL1REF:Page A1-3OBJ:1
2.A labor union is a group of workers who have organized to work together to achieve common job-related goals, such as higher wages, better working conditions, and greater job security.
ANS:TDIF:LL1REF:Page A1-3OBJ:1
3.Union members are most likely to become involved in union activities through their local union.
ANS:TDIF:LL1REF:Page A1-3OBJ:1
4.The Major League Baseball Players’ and the National Football League Players’ associations are both examples of industrial unions.
ANS:FDIF:LL2REF:Page A1-3OBJ:1
5.Although they help organize new local unions and provide locals with leadership training, national unions generally take a “hands-off” approach when it comes to the actual process of negotiating a labor contract.
ANS:FDIF:LL2REF:Page A1-3OBJ:1
6.The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) provides a high profile national voice for the labor movement and lobbies Congress in support of pro-labor legislation.
ANS:TDIF:LL2REF:Page A1-4OBJ:1
7.The passage of the Wagner Act led to a tremendous surge in union membership in the late 1930s.
ANS:TDIF:LL1REF:Page A1-5OBJ:2
8.Under a closed shop arrangement, unions are not permitted, and an employer can fire any workers who attempt to organize or join a union.
ANS:FDIF:LL1REF:Page A1-5OBJ:2
9.In states that have passed right-to-work laws, workers cannot be required to join a union in order to keep their job.
ANS:TDIF:LL1REF:Page A1-5OBJ:2
10.The Taft-Hartley Act of 1947 contained many pro-union provisions, including a recognition that closed shops are legal in any state that has not enacted a right-to-work law.
ANS:FDIF:LL1REF:Page A1-5OBJ:2
11.An open shop is an employment arrangement in which a firm can hire nonunion workers, but these workers must join the union within a specified time period to keep their jobs.
ANS:FDIF:LL1REF:Page A1-5OBJ:2
12.Employment at will defines an employment agreement between the employer and employee as a completely voluntary relationship in which either party is free to terminate at any time for any reason.
ANS:TDIF:LL2REF:Page A1-4OBJ:2
13.The National Labor Relations Act of 1935 (also known as the Wagner Act) made it illegal for employers to discriminate against union members. It also required employers to recognize certified unions and to bargain with these unions in good faith.
ANS:TDIF:LL2REF:Page A1-5OBJ:2
14.Under a union shop arrangement, an employer agrees only to hire workers who already belong to a union.
ANS:FDIF:LL2REF:Page A1-5OBJ:2
15.Frank Meadows has never been a member of a union. However, the company that hired him operates under a union shop arrangement, and Frank’s job is one covered under the union contract. Frank will have to join the union within a specified time period if he wants to keep his job.
ANS:TDIF:LL2REF:Page A1-5OBJ:2
16.A minimills manufacturing company has both management and nonmanagement jobs at the Phoenix location. Since Phoenix, Arizona, is a right-to-work state, the manufacturer must operate under a closed shop arrangement.
ANS:FDIF:LL3REF:Page A1-5OBJ:2
17.Rita Groh is a union leader in Wisconsin who is concerned with the problems unions have recruiting members and raising funds. She has just heard that a bill has been introduced in Wisconsin’s state legislature that calls for the passage of a right-to-work law. This information is likely to make Rita very happy because such laws make it easier to get workers to join unions.
ANS:FDIF:LL3REF:Page A1-5OBJ:2
18.Arbitration is a process in which a neutral third party has the authority to resolve a dispute by rendering a binding decision.
ANS:TDIF:LL1REF:Page A1-7OBJ:3
19.Distributive bargaining is the traditional adversarial approach to collective bargaining.
ANS:TDIF:LL2REF:Page A1-6OBJ:3
20.In interest-based collective bargaining, the two sides explore the issues in depth and work together to find mutually acceptable solutions with a goal of creating a “win-win” outcome.
ANS:TDIF:LL2REF:Page A1-6OBJ:3
21.A lockout is a work stoppage initiated by workers when they see that the company will not agree to their demands.
ANS:FDIF:LL2REF:Page A1-6OBJ:3
22.As a labor tactic, a boycott occurs when a union and its supporters refuse to do business with an employer during a labor dispute.
ANS:TDIF:LL2REF:Page A1-7OBJ:3
23.Picketing is a legal union tactic during a labor dispute as long as it is peaceful and the picketers don’t prevent people who don’t support the union’s position from entering the business.
ANS:TDIF:LL2REF:Page A1-7OBJ:3
24.The first step in most grievance procedures is to hire an arbitrator to organize and oversee the grievance process.
ANS:FDIF:LL2REF:Page A1-7OBJ:3
25.Jeff Riddle is a member of his union’s collective bargaining team, and Sharon Banion is on the management’s bargaining team. As part of the negotiating process, Jeff and Sharon are working together to find ways to provide workers with more flexible work schedules and improve worker productivity. They hope to combine these two goals to create a win-win solution that can be incorporated into the new labor contract. This approach suggests that the two sides are using a tactic known as distributive bargaining.
ANS:FDIF:LL3REF:Page A1-6OBJ:3
26.Union workers tend to earn higher wages and receive better benefits than nonunion workers performing similar jobs.
ANS:TDIF:LL1REF:Page A1-8OBJ:4
27.In recent years, many American employers have become increasingly aggressive in their use of antiunion tactics.
ANS:TDIF:LL1REF:Page A1-9OBJ:4
28.Labor contracts and grievance procedures provide due process to workers who are fired or punished for arbitrary reasons.
ANS:TDIF:LL2REF:Page A1-8OBJ:4
29.After a period of decline from the early 1980s through the mid-1990s, union membership in the private sector has grown significantly since the late 1990s.
ANS:FDIF:LL2REF:Page A1-9OBJ:4
MULTIPLE CHOICE
30.A ______is a group of workers who have organized in order to pursue common work-related goals, such as better wages and benefits, safer working conditions, and greater job security.
a) / labor federationb) / labor union
c) / cooperative
d) / labor collective
ANS:BDIF:LL1REF:Page A1-3OBJ:1
31.A(n) ______is a union composed of workers who share the same skill or work in the same profession.
a) / craft unionb) / concentric union
c) / industrial union
d) / pure union
ANS:ADIF:LL1REF:Page A1-3OBJ:1
32.A(n)______is a union composed of workers employed in the same industry.
a) / labor federationb) / diversified union
c) / industrial union
d) / democratic union
ANS:CDIF:LL1REF:Page A1-3OBJ:1
33.The ______is the level at which most members interact with their union.
a) / local unionb) / labor collective
c) / labor cooperative
d) / regional labor council
ANS:ADIF:LL1REF:Page A1-3OBJ:1
34.The United Brotherhood of Carpenters and Joiners of America and the National Football League Players’ Association are examples of
a) / industrial unions.b) / union shops.
c) / labor unions.
d) / craft unions.
ANS:DDIF:LL2REF:Page A1-3OBJ:1
35.The ______is a federation of national unions that provides the U.S. labor movement with a high profile national voice.
a) / American Federation of Labor and Congress of Industrial Organizationsb) / Knights of Labor
c) / National Association for the Representation of Working Americans
d) / The International Brotherhood of Workers and Craftsmen
ANS:ADIF:LL2REF:Page A1-4OBJ:1
36.______provide services to their local unions, including legal advice and leadership training, and also provide assistance to locals during collective bargaining.
a) / Labor guildsb) / Union cooperatives
c) / National unions
d) / Labor action committees
ANS:CDIF:LL2REF:Page A1-4OBJ:1
37.Which of the following activities would the AFL-CIO be most likely to perform?
a) / participate directly in local collective bargaining negotiations.b) / encourage more states to enact right-to-work laws.
c) / lobby members of the U.S. Congress in support of pro-labor legislation.
d) / The AFL-CIO would be involved in all of the activities in this list.
ANS:CDIF:LL3REF:Page A1-4OBJ:1
38.The ______established the first federal minimum wage of 25 cents per hour.
a) / National Labor Relations Act of 1935b) / Freedom from Poverty Act of 1932
c) / Adequate Compensation Act of 1946
d) / Fair Labor Standards Act of 1938
ANS:DDIF:LL1REF:Page A1-4OBJ:2
39.Which of the following laws guaranteed rank-and-file union members the right to participate in union meetings and required unions to have regularly scheduled secret ballot elections of officers?
a) / Wagner Act.b) / Fair Labor Standards Act.
c) / Labor Management Reporting and Disclosure Act.
d) / Norris-LaGuardia Act.
ANS:CDIF:LL1REF:Page A1-4OBJ:2
40.A(n) ______is an employment arrangement that requires the employer to hire only workers who already belong to the union.
a) / open shopb) / closed shop
c) / union shop
d) / craft union
ANS:BDIF:LL1REF:Page A1-5OBJ:2
41.A(n) ______is an employment arrangement in which a company may hire nonunion workers, but all workers represented by the union must become union members within a specified time period to keep their jobs.
a) / union shopb) / industrial shop
c) / open shop
d) / closed union
ANS:ADIF:LL1REF:Page A1-5OBJ:2
42.The ______did not declare the union shop illegal, but it did allow each state to enact a right-to-work law that made union shops illegal within its borders.
a) / Fair Labor Standards Actb) / Wagner Act
c) / Landrum-Griffin Act
d) / Taft-Hartley Act
ANS:DDIF:LL2REF:Page A1-4OBJ:2
43.
______made it illegal for employers to discriminate based on union membership and established the National Labor Relations Board to investigate unfair labor practices. This act also established a voting procedure for workers to certify a union as their bargaining agent.
a) / The Wagner Actb) / The Fair Labor Standards Act
c) / The Taft-Hartley Act
d) / The Norris-LaGuardia Act
ANS:ADIF:LL2REF:Page A1-4OBJ:2
44.The National Labor Relations Act (or Wagner Act) contained all of the following provisions, EXCEPT that it
a) / made it illegal for employers to discriminate based on union membership.b) / allowed states to pass right-to-work laws.
c) / establish a voting procedure for workers to certify a union.
d) / required employers to negotiate in good faith with certified unions.
ANS:BDIF:LL2REF:Page A1-4OBJ:2
45.The most important pro-union labor law enacted during the 1930s was the Page
______, also known as the ______.
a) / Labor-Management Relations Act; Taft-Hartley Actb) / Labor-Management Reporting and Disclosure Act; Landrum-Griffin Act
c) / Fair Labor Standards Act; Employment at Will Act
d) / National Labor Relations Act; the Wagner Act
ANS:DDIF:LL2REF:A1-5OBJ:2
46.Which of the following employment arrangements is most likely to result in the “free rider” problem for a union?
a) / open shop.b) / closed shop.
c) / union shop.
d) / restricted shop.
ANS:ADIF:LL2REF:Page A1-5OBJ:2
47.Workers at the Twin Rivers Assembly Plant recently voted in favor of certifying a union to represent them. The company that operates the plant has refused to recognize the union and won’t bargain with it. This approach by the company is
a) / completely legal but unethical.b) / both legal and ethical because the passage of the Taft-Hartley Act allows all firms to operate under an open shop arrangement.
c) / a violation of the Landrum-Griffin Act.
d) / a violation of the Wagner Act.
ANS:DDIF:LL3REF:Page A1-4OBJ:2
48.Critics of right-to-work laws believe that they allow workers to receive the benefits of union representation without paying union dues, thus depriving the union of the ability to raise the money it needs to effectively represent workers. This problem is referred to as the ______problem.
a) / “no pay, no way”b) / free rider
c) / beggar thy neighbor
d) / second-class representation
ANS:BDIF:LL3REF:Page A1-5OBJ:2
49.Kyle Woolery just joined a company that has a union that will represent him. The company operates under an open shop arrangement. This suggests that Kyle
a) / will soon have to join the union in order to keep his job.b) / may join the union if he wishes, but he cannot be required to do so.
c) / must already belong to the union because he could not have been hired otherwise.
d) / doesn’t have to join the union, but he will be required to pay union dues.
ANS:BDIF:LL3REF:Page A1-5OBJ:2
50.______is the process by which representatives of labor and management attempt to negotiate a mutually acceptable labor agreement.
a) / Collective bargainingb) / Unilateral bargaining
c) / Representational bargaining
d) / Arbitration bargaining
ANS:ADIF:LL1REF:Page A1-5OBJ:3
51.A(n) ______is a complaint made by a worker accusing the employer of violating the terms of a collective bargaining agreement.
a) / arbitrationb) / appeal notification
c) / mediation
d) / grievance
ANS:DDIF:LL1REF:Page A1-7OBJ:3
52.______involves workers walking and carrying signs near the entrance of an establishment with which they have a dispute in order to publicize their position and concerns.
a) / Strikingb) / Picketing
c) / Blocking-out
d) / Boycotting
ANS:BDIF:LL1REF:Page A1-7OBJ:3
53.Under federal laws governing the process of collective bargaining, topics dealing with wages, benefits, and working conditions are
a) / completely off limits, because these are determined by the application of federal laws rather than by negotiation.b) / mandatory subjects of bargaining, meaning that if either side makes a proposal about one of these topics, the other cannot legally refuse to discuss it.
c) / negotiated only under the direction and supervision of a third party known as an arbitrator.
d) / permissible topics of bargaining, meaning that the two sides are free to bargain about these subjects if they wish, but neither side can be required to do so.
ANS:BDIF:LL2REF:Pages A1-5 to A1-6
OBJ:3
54.In the collective bargaining process, the two parties are free to bargain over______subjects of bargaining if they wish, but neither side can be required to do so.
a) / secondaryb) / suggested
c) / statutory
d) / permissible
ANS:DDIF:LL2REF:A1-6OBJ:3
55.______involves bringing in an outsider who attempts to help the two sides reach an agreement, while ______involves bringing in an outsider with the authority to impose a binding settlement on both parties.
a) / Collective bargaining; distributive bargainingb) / Distributive bargaining; interest-based bargaining
c) / Mediation; arbitration
d) / Arbitration; mediation
ANS:CDIF:LL2REF:A1-7OBJ:3
56.Jeff Biddle is a member of his union’s collective bargaining team, and Bailey Sharp is on the management’s bargaining team. As part of the negotiating process, Jeff and Bailey are working together to find solutions to some difficult issues involving the health care benefits the company offers employees. They hope to create a win-win solution that can be incorporated into the new labor contract. This approach suggests that the collective bargaining process is taking an approach known as
a) / distributive bargaining.b) / mediated bargaining.
c) / interest-based bargaining.
d) / Waiver of Independence Negotiating (WIN).
ANS:CDIF:LL3REF:Page A1-6OBJ:3
57.The union representing hourly workers at the Hilltown Auto Plant is gearing up for negotiations. The negotiating team is working on a list of demands. They intend to use whatever tactics are necessary to get the company to accept these demands. For its part, the management team plans to push hard to get the union to give up many of its benefits in order to cut costs. The attitudes of the two sides suggest this negotiating process will be an example of
a) / binding arbitration.b) / distributive bargaining.
c) / interest-based bargaining.
d) / the jawboning method of bargaining.
ANS:BDIF:LL3REF:Page A1-6OBJ:3
58.A comparison of wages and benefits of unionized workers with those of nonunion workers with similar qualifications and performing similar jobs suggests that
a) / nonunion workers have both higher wages and better benefits.b) / union workers have higher wages but nonunion workers have better benefits.
c) / nonunion workers have higher wages but union workers have better benefits.
d) / union workers tend to have both higher wages and better benefits.
ANS:DDIF:LL1REF:Page A1-9OBJ:4
59.In recent years union membership has been
a) / growing rapidly in both the private and public (government) sector.b) / growing in many areas of the public sector but declining in most parts of the private sector.
c) / declining in the public sector but growing strongly in the private sector.
d) / declining at a rapid rate in both the public and private sectors.
ANS:BDIF:LL1REF:Page A1-9OBJ:4
60.Labor contract terms and grievance procedures provide ______to workers who are fired or punished for arbitrary reasons.
a) / due processb) / lockout opportunities
c) / mediation
d) / security
ANS:ADIF:LL2REF:A1-8OBJ:4
61.Recently seven national unions withdrew from the AFL-CIO because they were discouraged by the AFL-CIO’s inability to increase union membership. They formed a new national labor federation known as
a) / The New Union.b) / Change to Win.
c) / Workers United for Labor Progress.
d) / the U.S. Federation of Labor.
ANS:BDIF:LL2REF:Page A1-9OBJ:4
62.A comparison of union membership in the private sector with union membership in the public sector shows that
a) / the percentage of workers belonging to unions is virtually identical in the two sectors.b) / a much higher percentage of workers in the private sector belongs to unions.
c) / a much higher percentage of workers in the public sector belongs to unions.
d) / while a slightly greater percentage of workers in the private sector currently belongs to unions, public sector unions are growing at a much faster rate.
ANS:CDIF:LL2REF:Page A1-9OBJ:4
63.Studies concerning the impact of unions on labor productivity have
a) / clearly shown that unions reduce labor productivity.b) / clearly shown that unions improve labor productivity.
c) / yielded mixed evidence about the impact unions have on labor productivity.
d) / suggested that unions actually have little or no impact on labor productivity.
ANS:CDIF:LL2REF:Page A1-8OBJ:4
ESSAY
64.What is a labor union? What are the two basic ways that unions can be organized? Compare and contrast local unions with national unions and the AFL-CIO.
ANS:
A labor union is a group of workers who have organized in order to pursue common job-related objectives, such as better wages and benefits, safer working conditions, and greater job security.
Unions can be organized either as craft unions, which consist of members who share the same skill or profession, or as industrial unions, which consist of workers in the same industry.
The most basic unit of a union is the local union. This is the level at which most members have an opportunity to get directly involved in union activities. Most locals belong to a national (or international) union.
National unions assist locals by providing services, such as leadership training and legal advice. They also help with the organization of new locals, support the efforts of existing locals to increase membership, and at times take an active role in the collective bargaining process.