How do cafeteria-style plans increase costs for employers?
A. Employers pay much higher premiums for an HMO than a preferred health care
plan.
B. Employers are required to pay higher insurance premiums for laid-off workers.
C. Contributions to PGBC to fund the retirement plan increases under this plan.
D. Employees select the kind of benefits they expect to need the most.
E. Employers bear the cost of providing employees with benefits they do not value.
Joshua, the union shop steward at Harlan Industries, believes it is his responsibility to
make sure that a union shop arrangement becomes a reality within the company. His
business colleague and HR manager, Nathan, disagrees, saying an agency shop within
the company would be a better strategy for the union. In this situation, which of the two
colleagues is correct?
A. Joshua is correct because Nathan, as an HR executive, despises unions.
B. Nathan argues that an agency shop will give the company a competitive advantage
when seeking new employees.
C. Joshua is correct because a union shop requires all employees to join the union
within 30 days of their start date with the company.
D. Nathan is correct because management believes it can influence those employees
who do not sign up for union membership.
E. Joshua is correct because he receives a bonus for every employee he signs up for
union membership.