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Indicate whether the statement is true or false.
1. A boycott occurs when employers refuse to give their company’s products free of cost to union members.
a.
True
b.
False
2. Contingent workers are a way for organizations to manage their demand for labor.
a.
True
b.
False
3. Organized labor in the 21st century supports the employment of contingent workers by organizations.
a.
True
b.
False
4. Strikebreakers are temporary workers brought in as replacements for striking employees.
a.
True
b.
False
5. Collective bargaining is a term that technically and properly is applied only in settings where employees are
nonunionized.
a.
True
b.
False
6. For a union to be decertified, it is mandatory that the union must have served as the official bargaining agent for the
employees for at least 3 years.
a.
True
b.
False
7. A negative settlement zone in the negotiation process refers to the zone of overlap between an organization’s and its
union’s demands in the bargaining zone.
a.
True
b.
False
8. A wildcat strike is an illegal form of labor action.
a.
True
b.
False
9. An impasse refers to a situation in which all parties involved in a negotiation reach an agreement.
a.
True
b.
False
10. To request a union certification election, at least 50 percent of the eligible workers within the bargaining unit should
sign authorization cards.
a.
True
b.
False
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Indicate the answer choice that best completes the statement or answers the question.
11. If the union membership votes to reject the labor contract after an agreement has been reached between the union and
management, then:
a.
the parties must return to the bargaining table.
b.
the party that can show reasonable cause has the final say.
c.
the union loses its bargaining power.
d.
the parties must directly seek government intervention.
12. The American Federation of Labor (AF of L) grew rapidly in the early 20th century because:
a.
workers preferred the businesslike approach of the AF of L.
b.
it focused on organizing employees by industry rather than by skills.
c.
workers preferred the radical nature of the AF of L.
d.
it focused on legislative and political activities.
13. A company can minimize unionization by:
a.
making the union president its official spokesperson.
b.
creating formal grievance systems for all its workers.
c.
petitioning the National Labor Relations Board to exempt it from the possibility of unionization.
d.
not hiring women workers and workers from ethnic minorities who are more likely to join unions.
14. In the 1920s, Barc Corporation, a coal manufacturing company, refused to negotiate its wage policy with its
employees. It also refused to bargain with the elected union members. In the given scenario, Barc Corporation violated
the:
a.
Wagner Act.
b.
Sherman Antitrust Act.
c.
Rowlatt Act.
d.
Publicity Act.
15. Which of the following is a reason for the steady decline in union membership in the United States?
a.
A continued predominance of white males in blue-collar jobs
b.
Bankruptcy declarations by many major corporations
c.
Aggressive antiunionization strategies undertaken by businesses
d.
The constant nature and composition of the U.S. workforce
16. Which of the following can be included in collective bargaining only if both parties agree?
a.
Permissive items
b.
Mandatory items
c.
Obligatory items
d.
Intellectual items
17. Identify a true statement about decertification of unions.
a.
A union can become decertified while an existing labor contract is in force.
b.
The National Labor Relations Board conducts a decertification election if 20 percent of the eligible employees
in an organization’s bargaining unit sign the decertification cards.
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c.
The union being decertified must have served as the official bargaining agent for the employees for at least 1
year.
d.
After a union has been decertified, a new election can be requested within 1 year.
18. Which of the following occurs when workers suddenly go on strike, without the authorization of the strikers’ union
and while a binding labor agreement is still in effect?
a.
A wildcat strike
b.
A slowdown strike
c.
A work-in strike
d.
A partial strike
19. Identify a true statement about strikes.
a.
Labor unions have large cash reserves in place before beginning a strike, in order to pay the striking workers.
b.
Strikebreakers minimize the loss to a business that might otherwise occur during a labor strike.
c.
Strikes can prove expensive to both an organization’s management and the labor union.
d.
An organization’s strike losses are usually low because of stockpiled inventory.
20. Which of the following statements is true of the American Federation of Labor (AF of L)?
a.
It resorted to extreme violence as a means of settling labor disputes.
b.
It merged with the Knights of Labor in 1995 to consolidate the strengths of both organizations.
c.
It focused on the legislative and political activities that affected workers.
d.
It served as an umbrella organization, with members joining individual unions affiliated with it.
21. During labor negotiations, the management of a company reaches the point where it states that it will give a maximum
of a 6-percent pay increase to all the employees of the company and not more. Despite threats of further agitation, the
management sticks to its decision. In the given scenario, the management has reached its _____.
a.
break-even point
b.
resistance point
c.
target point
d.
arbitration point
22. The primary reason for companies to export jobs to other countries is to:
a.
attract talent from other countries.
b.
cut down on overall costs.
c.
increase their global presence.
d.
create external equity.
23. When there is a difference of opinion between an employee who is a union member and his or her supervisor, the
employee should initially take his or her complaint to _____.
a.
an assembly line manager
b.
the chief management officer
c.
an arbitrator
d.
the shop steward
24. Which of the following statements is true of a positive settlement zone?
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a.
It refers to an organization achieving the desired results in a negotiation without giving in to the employees’
demands.
b.
It refers to an overlap between an organization’s and its union’s demands and expectations in the bargaining
zone.
c.
It refers to a situation where both the management of an organization and its employees agree to have a third-
party intervention.
d.
It refers to a phase in the negotiation process that prohibits the use of mediation or arbitration in case of a
disagreement.
25. The union members of Clarence Corporation, a packaged food manufacturing firm, stage a protest as their demand for
higher wages was not met by the management of the firm. During the protest, the union members frequently march to the
entrance to the firm holding signs that explain the reason for the protest. They do this in an attempt to intimidate the
management. This scenario most likely exemplifies _____.
a.
picketing
b.
featherbedding
c.
a boycott
d.
a slowdown
26. The negotiations between the management and the union members of a telecommunications company have been going
on for four months. However, both parties have been unable to agree on a contract. They now feel that reaching an
agreement is not imminent. In this case, the management and the union members have reached:
a.
their target point.
b.
their resistance point.
c.
a lockout.
d.
an impasse.
27. Which of the following is a similarity between the Knights of Labor and the American Federation of Labor?
a.
Both organized employees by industry, regardless of their skills or occupation.
b.
Both were composed of various craft unions.
c.
Both focused on the legislative and political activities that affected workers.
d.
Both served as umbrella organizations, with members joining individual unions affiliated with them.
28. Which of the following reasons led to the merger of the American Federation of Labor (AF of L) and the Congress of
Industrial Organizations (CIO)?
a.
Their common focus on the legislative and political activities that affected workers
b.
Their common strategy of organizing employees by industry rather than by skills
c.
The common fight of the two groups against the radical nature of the Industrial Workers of the World
d.
The series of strikes after World War II that led to public resentment and demands for union reform
29. Traditionally, union members have been predominantly:
a.
black males in blue-collar jobs.
b.
white males in blue-collar jobs.
c.
Asian women in white-collar jobs.
d.
Hispanic women in white-collar jobs.
30. Which of the following strategies is used by team owners to minimize union strength in professional sports?
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a.
Final-offer arbitration
b.
A slowdown
c.
A lockout
d.
Mediation
31. In the context of the process of unionization, which of the following is the next step after the National Labor Relations
Board (NLRB) defines the bargaining unit?
a.
Union organizers petition the workers to conduct an election among themselves.
b.
Union organizers elect officers, establish a meeting site, and begin to recruit members from the labor force in
the bargaining unit to join the union.
c.
Union organizers generate interest in unionization among workers.
d.
Union organizers strive to get 30 percent of the eligible workers within the bargaining unit to sign
authorization cards requesting a certification election.
32. Which of the following is a condition that must be met for the decertification of a union?
a.
The union must have served as the official bargaining agent for the employees for at least 3 years.
b.
A closed-shop agreement must have existed between the union and the employer.
c.
No labor contract must currently be in force.
d.
The union must have at least hundred members.
33. Which of the following occurs in the first step of the unionization process?
a.
The National Labor Relations Board conducts an election via secret ballot.
b.
Employees show some interest in joining a union.
c.
Employees sign authorization cards giving consent to the formation of a union.
d.
The National Labor Relations Board defines the bargaining unit.
34. The employees of a manufacturing company are scheduled to have contract negotiations with their employer. While
preparing for the negotiations, the employees and the employer decide the parameters of the bargaining session. They
agree that wages, benefits, and working hours will be discussed during the session. In the given scenario, the employees
and the employer will be discussing _____.
a.
permissive items
b.
mandatory items
c.
obligatory items
d.
intellectual items
35. In the context of the parameters for collective bargaining, which of the following statements is true of mandatory
items?
a.
If either negotiating party expresses a desire to negotiate one or more mandatory items, then the other party
must agree.
b.
Mandatory items include the union having veto power over the promotion of certain managers to higher-level
positions.
c.
Almost anything is negotiable under mandatory items if both the negotiating parties agree to discuss it.
d.
Mandatory items include a clause in the labor contract specifying that the employee union promises not to
strike.
36. Which of the following statements is true of the Congress of Industrial Organizations (CIO)?
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a.
It emerged from a dissenting faction of the Knights of Labor.
b.
It merged with the Industrial Workers of the World in 1995.
c.
It classified workers according to their crafts.
d.
It organized the steel, mining, and meatpacking industries.
37. In the unionization process, the number of representatives that the National Labor Relations Board (NLRB) sends to a
company to conduct an election is based on the:
a.
type of labor contract proposed to be signed.
b.
staffing strategy employed by the company.
c.
financial strength of the company.
d.
size of the bargaining unit.
38. Which of the following acts requires that national labor unions elect new leaders at least once every 5 years?
a.
The Taft-Hartley Act
b.
The Wagner Act
c.
The Landrum-Griffin Act
d.
The Sherman Antitrust Act
39. The basic purpose of which of the following acts was to curtail and limit union practices?
a.
The Taft-Hartley Act
b.
The Wagner Act
c.
The Rowlatt Act
d.
The Sherman Antitrust Act
40. Which of the following occurs in the final step of the unionization process?
a.
The eligible workers within the bargaining unit sign authorization cards requesting a certification election.
b.
The National Labor Relations Board sends one or more representatives to the facility to conduct an election.
c.
The National Labor Relations Board defines the group of employees who are eligible to be represented by the
union.
d.
The union organizers establish a meeting site and recruit members from the labor force in the bargaining unit
to join the union.
41. The second step in the unionization process is:
a.
getting 30 percent of the workers eligible to be represented by the union to sign authorization cards.
b.
asking the National Labor Relations Board to conduct a secret ballot election.
c.
asking the National Labor Relations Board to define the bargaining unit.
d.
instituting grievance procedures for resolving disputes between management and the union.
42. Prior to collective bargaining for a new labor contract, both the management and the union members of a shoe factory
decide that it is important that they discuss the issue of the employment of contingent workers in the organization. Both
parties thereby include it as a negotiable point for the bargaining session that, if agreed upon, will be entered into the new
contract. This point of negotiation falls under the category of _____.
a.
permissive items
b.
mandatory items
c.
prohibited items
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d.
intellectual items
43. The union president of Grenthall is asked to step down from his position as the management discovered that he was a
convicted felon. In the given scenario, which of the following acts is the management implementing?
a.
The Taft-Hartley Act
b.
The Sherman Antitrust Act
c.
The Landrum-Griffin Act
d.
The Wagner Act
44. Which of the following is a difference between the Knights of Labor and the American Federation of Labor?
a.
Unlike the American Federation of Labor, the Knights of Labor organized employees by industry.
b.
Unlike the American Federation of Labor, the Knights of Labor was composed of various craft unions.
c.
Unlike the Knights of Labor, the American Federation of Labor focused on legislative and political activities.
d.
Unlike the Knights of Labor, the American Federation of Labor served as an umbrella organization.
45. In the context of resolving impasses, which of the following statements is true of a lockout?
a.
It occurs when employees call in sick in large numbers.
b.
The practice is closely regulated by the government.
c.
The practice is the foremost among illegal union actions.
d.
It occurs when employees walk off their jobs and refuse to work.
46. Juan, the president of the labor union of a company, speaks to the management of the company about a requirement
for an extra worker to assist in the delivery process. He suggests hiring his cousin, who has prior experience in the field,
for the job. The management, however, finds out that there is no requirement for another worker in the unit and that Juan
made up the reason solely to get a job for his cousin. In the given scenario, Juan has most likely violated the _____.
a.
Taft-Hartley Act
b.
Sherman Antitrust Act
c.
Landrum-Griffin Act
d.
Wagner Act
47. In the context of unionization, which of the following refers to a specifically defined group of employees who are
eligible for representation by the union?
a.
A worker thread
b.
The bargaining unit
c.
A contingent workforce
d.
The labor council
48. In the United States, which of the following consisted mostly of unskilled workers and advocated extreme violence as
a means of settling labor disputes?
a.
The Knights of Labor
b.
The Congress of Industrial Organizations
c.
The American Federation of Labor
d.
The Industrial Workers of the World
49. The American Federation of Labor (AF of L) focused on _____.
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a.
legislative and political activities
b.
better employment contracts
c.
controlling the supply of skilled labor
d.
organizing employees by industry
50. Which of the following statements is true of the Taft-Hartley Act?
a.
It prohibited employers from hiring nonunion members.
b.
It repealed the right-to–work laws.
c.
It established procedures and listed tactics that employees could use to conduct strikes.
d.
It was established as a response to public outcries against the strikes following World War II.
51. Which of the following statements is true of the Wagner Act?
a.
It requires unions to file annual financial statements with the Department of Labor.
b.
It prohibits employers from engaging in certain unfair labor practices.
c.
It requires that national labor unions elect new leaders at least once every 5 years.
d.
It prohibits convicted felons from holding national union office.
52. Which of the following is a factor that has led to a decline in union membership in recent times?
a.
The changes in legislation that make unionization illegal in most sectors
b.
The inclusion of more women and ethnic minorities in the workforce composition
c.
The fraudulent activities carried out by most union presidents in organizations
d.
The removal of grievance systems for workers by firms to prevent them from joining unions
53. In the context of negotiations, which of the following statements describes mediation?
a.
The party that does not bargain in good faith may get everything it wants in an arbitrator’s decision but may
just as easily lose everything.
b.
A neutral third party listens to and reviews the information presented by both parties and makes an informed
recommendation to both parties.
c.
Negotiating parties agree in advance that they will accept the recommendations made by an independent third-
party arbitrator.
d.
It is uncommon for labor contracts in organizations to require mandatory mediation when there is an impasse.
54. Which of the following acts outlawed closed-shop agreements?
a.
The Taft-Hartley Act
b.
The Wagner Act
c.
The Landrum-Griffin Act
d.
The Sherman Antitrust Act
55. Identify a true statement about the negotiation process.
a.
A party makes a final offer exactly at the resistance point of the other party.
b.
A party makes a final offer exactly at the break-even point of the other party.
c.
A party makes a final offer exactly at the target point of the other party.
d.
A party makes a final offer exactly at the arbitration point of the other party.
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56. Which of the following statements is true of U.S. labor unions in the 21st century?
a.
Unions in the United States have become more involved in social issues such as the use of prison labor.
b.
New electronic technology has proved to be a catastrophe for the U.S. labor movement.
c.
Unions have become less concerned with major political developments in the United States.
d.
Union membership in the United States has steadily increased over the past decades, peaking in the 21st
century.
57. Which of the following statements is true of union decertification?
a.
A union can be decertified only if it is being pressured by the government to do so.
b.
A decertification election is conducted when 30 percent of the eligible employees in the bargaining unit sign
the decertification cards.
c.
For decertification to occur, a closed-shop agreement must have existed between the union and the employer.
d.
Once a union has been decertified, a new election cannot be requested for certification for at least 2 years.
58. In the process of unionization, after union organizers get 30 percent of the eligible workers within the bargaining unit
to sign authorization cards, they must:
a.
generate interest in unionization among employees.
b.
formulate a closed-shop agreement between management and the union.
c.
elect the president and the shop steward of the proposed union.
d.
petition the National Labor Relations Board to conduct an election.
59. The Landrum-Griffin Act requires:
a.
employers to not reveal information about their finances to unions.
b.
unions to file annual financial statements with the Department of Labor.
c.
national labor unions to elect a new leader every year.
d.
prison laborers to submit identification documents before starting work.
60. Which of the following statements reflects a current trend in union–management relations in the United States?
a.
Unions recognize that they do not have as much power as they once held.
b.
Basic issues such as wages and benefits no longer figure in union–management negotiations.
c.
Labor unions have negligible power over management in the steel industry.
d.
The relation between labor unions and management has become adversarial.
61. Explain the actions that management and labor unions can take to prepare for collective bargaining.
62. Briefly describe the steps that must be followed if employees are to form and join a labor union.
63. Explain the challenges that the Internet presents for U.S. labor unions.
64. Explain the stand of labor unions in the United States on issues such as employment of prison labor and contingent
workers.
65. Trace the early history of labor unions in the United States, and mention their significant contributions.
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52. b
53. b
54. a
55. a
56. a
57. b
58. d
59. b
60. a
61. Answers will vary. The goal of the collective-bargaining process is to produce agreement on a binding labor contract
that will define various dimensions of the employment relationship for a specified period of time. Thus, it is incumbent on
both management and union leaders to be adequately prepared for a bargaining and negotiation period because the
outcome of a labor negotiation will have long-term effects on both parties. Management can take several actions to
prepare for collective bargaining. For example, a firm can look closely at its own financial health to work out a realistic
picture of what it can and cannot offer in terms of wages and salaries for its employees. Management can also conduct a
comparative analysis to see what kinds of labor contracts and agreements exist in similar companies and what this
particular labor union has been requesting—and settling for—in the past.A union can and should undertake several actions
to be effectively prepared for collective bargaining. It too should examine the financial health of the company through
sources such as public financial records. Like management, the union can also determine what kinds of labor agreements
have been reached in other parts of the country and can determine what kinds of contracts other divisions of the company
or other businesses owned by the same corporation have negotiated recently. See 11-4: The Collective-Bargaining Process
62. Answers will vary. Several prescribed steps must be followed if employees are to form and join a labor union. These
steps are as follows:
• First, employees must have some interest in joining a union. In some cases, this interest may arise from current
employees who are dissatisfied with some aspects of the employment relationship. In other instances, existing
labor unions may send professional union organizers to nonunionized plants or facilities to generate interest in
unionization.
• If interest in forming a union exists, the National Labor Relations Board (NLRB) is asked to define the bargaining
unit, or the specifically defined group of employees who will be eligible for representation by the union.
• Once the bargaining unit has been defined, organizers must then strive to get 30 percent of the eligible workers
within the bargaining unit to sign authorization cards requesting a certification election. If organizers cannot get
30 percent of the workers to sign authorization cards, then the process ends.
• If the required number of signatures is obtained, the organizers petition the NLRB to conduct an election. The
NLRB sends one or more representatives, depending on the size of the bargaining unit, to the facility and
conducts an election. The election is always conducted via secret ballot. If a simple majority of those voting
approve union certification, then the union becomes the official bargaining agent of the eligible employees. But if
a majority fails to approve certification, the process ends.
• If the union becomes certified, then its organizers create a set of rules and regulations that govern the conduct of
the union. They also elect officers, establish a meeting site, and begin to recruit members from the labor force in
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