Collective bargaining

. In general, labor contract negotiations deal with four major areas. Given that this is the case, which of the following would fall under administrative clauses?

Work rules and job tenure

Overtime pay

Pensions and benefits

Rights and duties of employers and unions 2. In preparation for negotiating a labor contact, research conducted by either party

offers the only viable approach to adopting precedents for “just cause.”

will focus on community wage levels.

can explore just about any contract-related issue.

will usually focus on justifying management positions. 3. In general, unions object to _______ approaches to work scheduling because they’re viewed as management tools for reducing overtime and increasing the work pace.


differential shift pay

piece rate

flat rate 4. In 1960, the Supreme Court handed down decisions in three cases that came to be called the trilogy cases. In general terms, what was the effect of these decisions on organized labor?

The arbitration process was made more difficult.

Labor contracts were required to include an arbitration clause.

The arbitration process was strongly encouraged.

Arbitration could no longer be the proper forum for deliberating constitutional rights. 5. Which of the following statements is true regarding the cost of living?

Inflation tends to increase markedly during wartime.

In labor negotiations, cost-of-living criteria are used more often than comparative norm data.

Since 1900, consumer prices have increased by a factor of 10.

Cost-of-living trends can’t be based on the available historical data from the Consumer Price Index (CPI). 6. The Voluntary Labor Arbitration Tribunal was established by the

Federal Mediation and Conciliation Service.

U.S. Department of Labor.

American Association of Management Services.

American Arbitration Association. 7. The management of Burgess and Bigger, Inc. decide to establish a job-evaluation scheme to justify pay differentials for different jobs. The company’s resulting evaluation system would consider all the following factors except

job responsibilities.

cost of living relative to inflation.

working conditions inherent in the job.

required job skills. 8. Regarding Boulwarism, which statement is true?

The NLRB has implied, but never ruled, that GE was guilty of bad-faith bargaining.

Lemuel R. Boulware was an independent labor-relations consultant.

In spite of court decisions, “Boulwaristic” practices have appeared within the last decade.

GE’s “Boulwaristic” practices, although modified, continue to this day. 9. The greatest majority of grievances are resolved at the _______ level of a typical grievance procedure.

second or third



first or second level 10. With respect to escalator clauses, which statement is true?

Management tends to have a positive view of escalator-pay adjustments.

They’re normally based on the Consumer Price Index (CPI).

The trend toward longer-term labor contracts is likely to decrease the use of escalator schemes.

They provide an alternative to cost-of-living pay adjustments. 11. The principle of equal pay for equal work is denied when contracts call for a two-tier wage system in the context of _______ bargaining,




cooperative 12. Which of the following items, according to your text, have not in some way characterized labor contract negotiations?

Rational deliberation

Poker-type strategies

Rhetoric and name-calling

One-man, one-vote democracy 13. How was the hypothetical case of Harold Swift finally resolved?

Swift’s termination was upheld based on the union committee’s recommendation.

Swift’s case wasn’t resolved; it’s still under arbitration.

Swift was reinstated in his job, but suspended for 3 days without pay.

Swift was suspended without pay for 10 days. 14. When preparing to negotiate a new contract, you can assume that so-called _______ clauses will be needed to address issues such as employee discipline, seniority rights, workload sizes, and subcontracting.




derogatory 15. According to both the Federal Mediation and Conciliation Service (FMCS) and the American Arbitration Association (AAA), arbitration awards time lags

are brief and inconsequential.

average about 250 days.

have resulted in a nearly universal switch to miniarbitration.

average anywhere from 10 to 350 days. 16. Which of the following is not a basic objective of the grievance procedure?

A time limit is placed on each step.

Disputes are to be resolved in an orderly and friendly manner.

A sequence of steps is normally provided for resolving a grievance.

A grievance procedure must include no less than five steps. 17. A number of negotiation issues are complicated by interacting variables. In this context, what variable was illustrated in your text’s discussion of United Parcel Service of America (UPS) concessions granted to the Teamsters in 1997?

Robust economic health

Technological innovations

Failure to assess the other side’s strengths

Political problems within the union 18. Paula and Craig are discussing the differences between permanent and ad hoc arbitrators. Paula asserts that the majority of labor contracts specify a permanent arbitrator, but that ad hoc arbitrators are preferred when an employer does business in a number of different locations. Craig agrees with Paula’s first point, but asserts that permanent arbitrators are favored when the employer operates in several different locations.Who is correct?

Craig is partially correct, but both of Paula’s assertions are incorrect.

Craig is correct.

Paula is correct.

Paula is partially correct, but both of Craig’s assertions are incorrect. 19. With respect to negotiating wage rates and an employer’s ability to pay, which of the following statements is true?

If a company has no profits, its inability to pay is obvious.

The ratio of labor costs to total costs is a significant factor.

An economic formula is often used to determine the relationship between profits and ability to pay.

The way profits are to be used should have no bearing on ability-to-pay concerns. 20. The outcome of a five-month strike by New York Daily News employees in 1991 and the resolution of a 1999 dispute between Boeing and the International Association of Machinists were cited in the textbook to illustrate the importance of _______ to the outcomes of labor negotiations.



public relations



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