Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 1
1. Centralized (multi-employer) bargaining is frequently found in the healthcare and auto industries.
a.
True
b.
False
ANSWER:
False
2. The resistance point is the minimum concession acceptable by a party in a negotiation.
a.
True
b.
False
ANSWER:
True
3. Collective bargaining is an activity whereby union and management officials attempt to resolve conflicts of interest by
exchanging commitments in a manner intended to sustain and possibly enrich their continuing relationship.
a.
True
b.
False
ANSWER:
True
4. Management would probably prefer centralized bargaining if it had three separate manufacturing facilities (bargaining
units), each making the same product.
a.
True
b.
False
ANSWER:
False
5. The proportion of an employer's total operating costs comprised of labor costs is termed the degree of labor
intensiveness.
a.
True
b.
False
ANSWER:
True
6. Gains made by a party using the distributive bargaining approach come at the expense of the other party.
a.
True
b.
False
ANSWER:
True
7. Pattern bargaining is used to describe a situation where union or management negotiators informally attempt to extend a
negotiated settlement from one group to another.
a.
True
b.
False
ANSWER:
True
8. Generally, high unemployment reduces the union's cost of disagreeing with management because strikers could find it
difficult to find employment at other firms.
a.
True
b.
False
ANSWER:
False
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 2
9. Smaller-sized (suggested size of nine) bargaining teams are generally preferable to larger bargaining teams to enhance
bargaining effectiveness.
a.
True
b.
False
ANSWER:
True
10. "Voluntary" (also called permissive or non-mandatory) issues involve proposals which violate the law, and there is no
legal duty to bargain over such an issue.
a.
True
b.
False
ANSWER:
False
11. Any failure to reach an agreement on contract language concerning a mandatory bargaining subject represents a
violation of the duty to bargain in good faith.
a.
True
b.
False
ANSWER:
False
12. Unions do not place upper limits on their bargaining ranges because they maintain, "nothing ventured, nothing
gained."
a.
True
b.
False
ANSWER:
False
13. A profit-sharing plan represents a mandatory subject of bargaining.
a.
True
b.
False
ANSWER:
True
14. Possible government intervention in a labor dispute is a factor which could alter a union's or management's perception
of their relative bargaining power in that labor dispute.
a.
True
b.
False
ANSWER:
True
15. In some cases a specific, single action by an employer constitutes an unfair labor practice in bargaining, called a per se
violation.
a.
True
b.
False
ANSWER:
True
16. When a distributive bargaining approach is used to negotiate labor contract terms, the same party always wins (gains
more) on every bargaining issue.
a.
True
b.
False
ANSWER:
False
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 3
17. It is unlawful for an employer to refuse to comply with a union's request to furnish information, such as basic financial
information, which is relevant and necessary for the union to represent bargaining unit members in contract negotiations
or grievance handling duties.
a.
True
b.
False
ANSWER:
True
18. Approaching the bargaining process as a mutual problem-solving exercise is a characteristic of distributive bargaining.
a.
True
b.
False
ANSWER:
False
19. Where there is substantial continuity in a unionized firm's operation after transfer of ownership occurs, the purchaser
of the business would be classified as a new employer for the purpose of determining the employer's legal duty to bargain.
a.
True
b.
False
ANSWER:
False
20. A dispute between union and management representatives over what the terms and conditions of employment will be
is termed an interest dispute.
a.
True
b.
False
ANSWER:
True
21. A whipsaw bargaining strategy involves a negotiating team attempting to extract large, similar, concessions from
multiple opponents.
a.
True
b.
False
ANSWER:
True
22. The bargaining unit is the team formed by management to solve labor issues within the company.
a.
True
b.
False
ANSWER:
False
23. The selection of the number and type of individuals who will make up the bargaining team for each party is not an
important decision that can affect the outcome of negotiations.
a.
True
b.
False
ANSWER:
False
24. The target point is the union leaders’ realistic goal to work toward during negotiations.
a.
True
b.
False
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 4
ANSWER:
True
25. Good faith bargaining essentially means each party must demonstrate a sincere and honest intent to reach a labor
agreement and be reasonable in their bargaining positions, tactics and activities.
a.
True
b.
False
ANSWER:
True
26. The agreement which prohibits any union-represented bargaining unit from reaching a final contract settlement until
all unions who bargain contracts with the same employer are willing to settle is called:
a.
A Collective bargaining agreement.
b.
A centralized agreement.
c.
A supplemental agreement.
d.
A zone of potential agreement.
e.
A lock-in agreement.
ANSWER:
e
27. The minimum concession acceptable by a party in a negotiation is called the:
a.
End point.
b.
Termination point.
c.
Preference point.
d.
Resistance point.
e.
Break-even point.
ANSWER:
d
28. Which one of the following bargaining tactics would be least likely to be used by either union or management
negotiators because of the high credibility risks involved?
a.
Attempting to appear more firmly committed to one's bargaining position than they are
b.
Deliberate deception or falsification of information
c.
Painting a picture of the economic loss to the other side
d.
Imposing time pressure (e.g., strike deadline, proposal acceptance deadline)
e.
Taking a recess during a negotiation meeting
ANSWER:
b
29. In anticipating union bargaining proposals, management can consider all the following factors except
a.
Recent negotiations settlements.
b.
Reviewing the proceedings of a national union’s convention.
c.
Collective bargaining agreements negotiated by other firms in the same geographical region.
d.
Potential future grievances.
e.
Gathering information from formal information sources.
ANSWER:
d
30. Which one of the following is NOT a mandatory bargaining subject?
a.
Tax deferred (e.g., 401[k]) savings plan.
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 5
b.
Job promotion criteria and procedure.
c.
Employee stock ownership plan.
d.
Management unions
e.
Lump-sum pay.
ANSWER:
d
31. The yearly cost of a one-cent-per-hour wage increase at a facility of 1,000 employees is:
a.
$10,400.
b.
$1,000.
c.
$20,800.
d.
$208,000.
e.
$282,880.
ANSWER:
c
32. Bargaining power is more likely to be an important determinant of negotiated outcomes in which one of the following
approach to bargaining?
a.
Distributive bargaining
b.
Mutual gain bargaining
c.
Intraorganizational bargaining
d.
Interest-based bargaining
e.
Win-win bargaining
ANSWER:
a
33. The labor relations term for estimate of the total cents-per-hour costs of employer benefit items affected by a change
in the straight-time hourly wage rate is the
a.
Magnifier effect.
b.
Acceleration factor.
c.
Booster effect.
d.
Roll-up factor.
e.
Progressive cost factor.
ANSWER:
d
34. "Mandatory" bargaining subjects:
a.
Compose the bulk of the bargaining agenda during labor contract negotiations.
b.
Must be negotiated until agreement is reached if one party raises the issue.
c.
Do not have to be negotiated if one party raises the issue.
d.
Mandates that a federal mediator will resolve the differences between the parties if they can’t reach agreement
on one or more bargaining subjects.
e.
Mandates that a federal mediator must approve the agreement.
ANSWER:
a
35. Integrative bargaining is also referred to as:
a.
Distributive bargaining.
b.
Interest-based bargaining.
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 6
c.
Good-faith bargaining.
d.
Intraorganizational bargaining.
e.
Voluntary bargaining.
ANSWER:
b
36. Which one of the following would not be a characteristic of a distributive bargaining approach?
Win-lose negotiations results.
a.
A focus on maximizing your own party's interests
b.
A focus on cost/benefit analysis to determine the acceptability of contract proposals
c.
An attempt to structure communication patterns during negotiations to maintain focus on your own party's
proposals
d.
An effort to identify multiple alternatives capable of achieving a mutually satisfactory bargaining outcome
rather than focusing on narrowing the gap between each party's established position on issues in dispute
e.
ANSWER:
d
37. Under the bargaining power model, when is the union's bargaining power increased?
a.
It costs more for management to disagree than agree with the union
b.
It costs more for management to agree than to disagree with the union
c.
It costs more for the union to agree than disagree with management
d.
It costs less for the union to agree than disagree with management
e.
It costs less for management to disagree than to agree with the union
ANSWER:
a
38. In the Chamberlain and Kuhn bargaining power model, one party’s bargaining power can be conceptualized as equal
to the other party’s cost of _____ the proposed settlement terms divided by their cost of _____ to such terms.
a.
Agreeing with; disagreeing
b.
Disagreeing with; agreeing
c.
Seeking to arbitrate; seeking to mediate
d.
Seeking to mediate; seeking to arbitrate
e.
Aagreeing with; seeking to arbitrate
ANSWER:
b
39. Which one of the following should not be a relevant consideration when selecting members for a management
negotiating team?
a.
Whether the individual occupies a line or staff managerial position within the firm
b.
Perceived need for an individual's skills and abilities
c.
Political considerations
d.
Having a sense of humor.
e.
Consciousness of social cues.
ANSWER:
c
40. The hard bargaining approach developed by a vice president at GE meant to circumvent the union was found to be a
violation of good faith bargaining primarily because it attempted to bypass the employees’ exclusive bargaining agent was
called:
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 7
a.
Boulwarism
b.
Gomperism
c.
Interdependent bargaining.
d.
Intensity bargaining.
e.
Mutual-gain bargaining.
ANSWER:
a
41. Which of the following does NOT pertain to new employer bargaining obligations?
a.
The desire of the owner to operate on a nonunion basis
b.
The degree of change in the firm's operation brought about by new ownership
c.
Whether most employees remain the same after the ownership change
d.
Whether the firm remains in the same location after the ownership change
e.
All of these pertain to successor (new) employer bargaining obligations
ANSWER:
a
42. One party is willing to meet at length and confer but merely goes through the motions of bargaining. Proposals are
made that cannot be accepted, an inflexible attitude on major issues is taken, and no alternative proposals are offered. This
scenario best describes:
a.
Bypassing the representative.
b.
Dilatory tactics.
c.
Imposing conditions.
d.
Surface bargaining.
e.
Intraorganizational bargaining.
ANSWER:
d
43. When would management officials probably prefer centralized (multi-plant) bargaining?
a.
When the products at each plant are interdependent (Plant A's product is necessary for Plant B's product).
b.
When the products at each plant are independent of each other (Plant A's product is not necessary to produce
Plant B's product).
c.
When both plants’ products are labor intensive
d.
When neither plants’ products are labor intensive
e.
When both plants’ products are independent and labor intensive
ANSWER:
a
44. If an employer claims an inability to pay for a union’s bargaining proposal, the union is entitled:
a.
to receive stock options equal to the dollar amount the employer claims it is unable to pay.
b.
to file an unfair labor practice against management’s refusal to bargaining in good faith.
c.
access to company financial information necessary to validate the employer’s inability to pay claim.
d.
to the same percentage wage and benefit increase planned for managerial employees.
e.
to declare a bad-faith bargaining impasse.
ANSWER:
c
45. Actions such as changing the compensation or fringe-benefit package unilaterally during bargaining without having
reached a good faith bargaining impasse are called:
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 8
a.
Commission of unfair labor practices.
b.
Imposing unreasonable conditions.
c.
Unilateral changes in conditions.
d.
Dilatory tactics.
e.
Surface bargaining.
ANSWER:
c
46. The activity whereby union and management officials attempt to resolve conflicts of interest by exchanging
commitments in a manner intended to sustain and possibly enrich their continuing relationship is called:
a.
Pattern bargaining.
b.
Whipsaw bargaining.
c.
Leapfrogging.
d.
Collective bargaining.
e.
Surface bargaining.
ANSWER:
d
47. The strategy which involves a negotiating team attempting to extract large, similar concessions from multiple
opponents is called:
a.
Pattern bargaining.
b.
Whipsaw bargaining.
c.
Leapfrogging.
d.
Collective bargaining.
e.
Surface bargaining.
ANSWER:
b
48. The strategy which attempts to use the most recent contracts in the industry as the starting point for achieving further
concessions is called:
a.
Pattern bargaining.
b.
Whipsaw bargaining.
c.
Leapfrogging.
d.
Collective bargaining.
e.
Surface bargaining.
ANSWER:
c
49. The area of overlap between the union’s and management’s bargaining ranges is called the:
a.
Contract zone.
b.
Bargaining range.
c.
Target point.
d.
Utility zone.
e.
Intraorganizational bargaining.
ANSWER:
a
50. The result of the calculation of any contract item that can be obtained by dividing the annual total cost of the item by
the number of bargaining unit hours worked during the year is called the:
Name:
Class:
Date:
CHAPTER 6 Negotiating the Labor Agreement
Copyright Cengage Learning. Powered by Cognero.
Page 9
a.
Roll-up factor.
b.
Cents-per-hour wage increase.
c.
Cents-per-hour cost.
d.
Costing contract proposal.
e.
Contract zone.
ANSWER:
c
