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Exam 12: Dealing With Employeemanagement Issues

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Question 151

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Mini-Case The workers at Endrun Corporation are not affiliated with a union. Until recently, the workers felt they were well paid and treated fairly by the company, so they had little interest in seeking union representation. However, worker morale at Endrun has declined steadily since the board of directors fired the old CEO last year and replaced him with Ty Runt, a no-nonsense, autocratic manager with a reputation for cutting costs. As soon as he took over, Ty fired other members of the old top management team and replaced them with people who shared his views. Together, the new management team made a series of moves that did not sit well with Endrun's workers. First, they announced changes in work procedures designed to speed up the production line. Many workers complained that the new methods cut corners and were unsafe, but management refused to listen. A few months after changing work methods, the company told workers that it was reducing their health benefits. This led to even greater worker unrest. Finally, just a few weeks ago, workers received word that the wages of all production-line employees would be cut by 6 percent. Many employees felt this was the last straw, especially since the company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management team. A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to reduce costs, increase productivity, and improve the company's profits." Several disgruntled employees, led by Ima Striker and Boyd Cotter, now believe it is time to obtain union representation. Top managers at the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the company decides to downsize. Ima and Boyd are not intimidated by these management threats. "I wish we didn't have to do this," Ima recently told many of her fellow workers at the plant. "But someone has to stop Ty Runt and his team from ruining our jobs." -If management tries to threaten or punish Ima and Boyd for their efforts to gain union representation, the two workers could ask the ________ to investigate these unfair labor practices.

A) National Labor Relations Board
B) Bureau of Labor-Management Relations
C) Department of Justice
D) Federal Trade Commission

E) B) and C)
F) C) and D)

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Question 152

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Dockworkers were locked out of their jobs in 29 West Coast ports. Because many consumer goods used in the U.S. are transported from Asia to the U.S. through these ports, the lockout could have damaged the U.S. economy and security if allowed to continue. The U.S. president ordered the dockworkers back to work and both sides were ordered back to the bargaining table. Which of the following statements is the most accurate conclusion about the outcome of the labor dispute between the dockworkers union and shipping companies on the West Coast?

A) The dispute between the dockworkers and shipping companies showed that the only effective weapon unions now have in labor-management disputes is the threat of a strike.
B) The dispute between the dockworkers and shipping companies showed that arbitration is the only effective way to settle labor-management disputes in industries that are critical to the nation's safety or security.
C) The dispute between the dockworkers and shipping companies showed that the Taft-Hartley Act must be invoked when critical industries are involved.
D) The dispute between the dockworkers and shipping companies showed that unions have become so powerful that they can shut down the entire U.S. economy.

E) A) and D)
F) A) and C)

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Question 153

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Which of the following acts gave more power to management in its relations with organized labor?

In a primary boycott, a union encourages its members and the general public not to buy the goods and services produced by a firm involved in a labor dispute.

The fact that workers sometimes serve on the board of directors of European companies helps explain why

The process of bringing in an impartial third party to render a binding decision in a labor dispute is referred to as

The Knights of Labor and the American Federation of Labor were actually very similar in their aims, tactics, and membership. The only major difference was in the effectiveness of their leaders.

Small businesses have found that child care programs

The National Labor Relations Board (NLRB) has created procedures that union advocates must follow in order to organize a union at a place of business. The multistep procedure culminates with a secret vote by the employees of the organization.

During its early years, the AFL tried to expand as rapidly as possible by recruiting both skilled and unskilled workers.

The presence of formal labor organizations in the United States dates back to the

In the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union. Atalanta agreed to a type of arrangement known as a(n)

Often flirting with each other at work, Mike and Lindsay both view their actions as harmless fun, as do the other employees in their office. Their flirtation does not offend the other workers or make them feel threatened or uncomfortable. Nevertheless, under current criteria, both Mike and Lindsay could be found guilty of sexual harassment.

________ is the process by which representatives of a union meet with representatives of management to negotiate a contract for workers.

The ________ outlawed the use of yellow-dog contracts and prohibited courts from issuing injunctions against nonviolent union activities.

During the 1920s and early 1930s, the Rosedale Shoe Factory was able to prevent workers from forming a union by requiring them to sign an employment contract in which they agreed not to join a union as a condition of employment. Rosedale Shoe Factory was making use of

Although the general public often sees the compensation of CEOs of major U.S. corporations as being much too high, the pay and benefits these top executives receive is actually quite similar to what is earned by top executives in other countries with market economies.