MGT-304
Exam 1 Review
Chapter 7: International Employee Relations
1. Know what “union density” (aka unionization rate) is and how it may affect national economy.
oUnion density: what percentage of the people in the country that belong to unions.
oLow Wages
oProximity to customers, suppliers, raw materials
oFew Trade regulations (e.g., import/export tariffs)
oFDI incentives offered by local governments
oLABOR UNIONS
2. General understand of union density differences across the world (and how the U.S. compares to
the rest of the world)
oThe U.S. has one of the lowest unionization rates.
oVaries from country to country (as low as 10% – everyone).
3. Know how labor unions may affect employees, organizations, industries and countries
oCollective bargaining agreement change: hiring/firing process, how employees work,
how much you pay, and how you evaluate.
oUnions limit owners’/managers’ freedom.
oIn a unionized organization, it is difficult to get rid of an employee.
oDisputes usually go into arbitration.
oIf you’re an employee, you wish a union was at your company.
