Appendix I: Labor Unions and Collective Bargaining
TRUE/FALSE
1. A craft union consists of workers who possess the same skill or are in the same
profession.
ANS: T DIF: LL1 REF: Page A1-3 OBJ: 1
2. A labor union is a group of workers who have organized to work together to achieve
common job-related goals, such as higher wages, better working conditions, and greater
job security.
ANS: T DIF: LL1 REF: Page A1-3 OBJ: 1
3. Union members are most likely to become involved in union activities through their local
union.
ANS: T DIF: LL1 REF: Page A1-3 OBJ: 1
4. The Major League Baseball Players’ and the National Football League Players’
associations are both examples of industrial unions.
ANS: F DIF: LL2 REF: Page A1-3 OBJ: 1
5. Although they help organize new local unions and provide locals with leadership training,
national unions generally take a “hands-off” approach when it comes to the actual
process of negotiating a labor contract.
ANS: F DIF: LL2 REF: Page A1-3 OBJ: 1
6. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
provides a high profile national voice for the labor movement and lobbies Congress in
support of pro-labor legislation.
, ANS: T DIF: LL2 REF: Page A1-4 OBJ: 1
7. The passage of the Wagner Act led to a tremendous surge in union membership in the
late 1930s.
ANS: T DIF: LL1 REF: Page A1-5 OBJ: 2
8. Under a closed shop arrangement, unions are not permitted, and an employer can fire
any workers who attempt to organize or join a union.
ANS: F DIF: LL1 REF: Page A1-5 OBJ: 2
9. In states that have passed right-to-work laws, workers cannot be required to join a union
in order to keep their job.
ANS: T DIF: LL1 REF: Page A1-5 OBJ: 2
10. The Taft-Hartley Act of 1947 contained many pro-union provisions, including a
recognition that closed shops are legal in any state that has not enacted a right-to-work
law.
ANS: F DIF: LL1 REF: Page A1-5 OBJ: 2
11. An open shop is an employment arrangement in which a firm can hire nonunion workers,
but these workers must join the union within a specified time period to keep their jobs.
ANS: F DIF: LL1 REF: Page A1-5 OBJ: 2
12. Employment at will defines an employment agreement between the employer and
employee as a completely voluntary relationship in which either party is free to terminate
at any time for any reason.
ANS: T DIF: LL2 REF: Page A1-4 OBJ: 2
,13. The National Labor Relations Act of 1935 (also known as the Wagner Act) made it illegal
for employers to discriminate against union members. It also required employers to
recognize certified unions and to bargain with these unions in good faith.
ANS: T DIF: LL2 REF: Page A1-5 OBJ: 2
14. Under a union shop arrangement, an employer agrees only to hire workers who already
belong to a union.
ANS: F DIF: LL2 REF: Page A1-5 OBJ: 2
15. Frank Meadows has never been a member of a union. However, the company that hired
him operates under a union shop arrangement, and Frank’s job is one covered under the
union contract. Frank will have to join the union within a specified time period if he wants
to keep his job.
ANS: T DIF: LL2 REF: Page A1-5 OBJ: 2
16. A minimills manufacturing company has both management and nonmanagement jobs at
the Phoenix location. Since Phoenix, Arizona, is a right-to-work state, the manufacturer
must operate under a closed shop arrangement.
ANS: F DIF: LL3 REF: Page A1-5 OBJ: 2
17. Rita Groh is a union leader in Wisconsin who is concerned with the problems unions
have recruiting members and raising funds. She has just heard that a bill has been
introduced in Wisconsin’s state legislature that calls for the passage of a right-to-work
law. This information is likely to make Rita very happy because such laws make it easier
to get workers to join unions.
ANS: F DIF: LL3 REF: Page A1-5 OBJ: 2
18. Arbitration is a process in which a neutral third party has the authority to resolve a
dispute by rendering a binding decision.
ANS: T DIF: LL1 REF: Page A1-7 OBJ: 3
, 19. Distributive bargaining is the traditional adversarial approach to collective bargaining.
ANS: T DIF: LL2 REF: Page A1-6 OBJ: 3
20. In interest-based collective bargaining, the two sides explore the issues in depth and
work together to find mutually acceptable solutions with a goal of creating a “win-win”
outcome.
ANS: T DIF: LL2 REF: Page A1-6 OBJ: 3
21. A lockout is a work stoppage initiated by workers when they see that the company will
not agree to their demands.
ANS: F DIF: LL2 REF: Page A1-6 OBJ: 3
22. As a labor tactic, a boycott occurs when a union and its supporters refuse to do business
with an employer during a labor dispute.
ANS: T DIF: LL2 REF: Page A1-7 OBJ: 3
23. Picketing is a legal union tactic during a labor dispute as long as it is peaceful and the
picketers don’t prevent people who don’t support the union’s position from entering the
business.
ANS: T DIF: LL2 REF: Page A1-7 OBJ: 3
24. The first step in most grievance procedures is to hire an arbitrator to organize and
oversee the grievance process.
ANS: F DIF: LL2 REF: Page A1-7 OBJ: 3
TRUE/FALSE
1. A craft union consists of workers who possess the same skill or are in the same
profession.
ANS: T DIF: LL1 REF: Page A1-3 OBJ: 1
2. A labor union is a group of workers who have organized to work together to achieve
common job-related goals, such as higher wages, better working conditions, and greater
job security.
ANS: T DIF: LL1 REF: Page A1-3 OBJ: 1
3. Union members are most likely to become involved in union activities through their local
union.
ANS: T DIF: LL1 REF: Page A1-3 OBJ: 1
4. The Major League Baseball Players’ and the National Football League Players’
associations are both examples of industrial unions.
ANS: F DIF: LL2 REF: Page A1-3 OBJ: 1
5. Although they help organize new local unions and provide locals with leadership training,
national unions generally take a “hands-off” approach when it comes to the actual
process of negotiating a labor contract.
ANS: F DIF: LL2 REF: Page A1-3 OBJ: 1
6. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
provides a high profile national voice for the labor movement and lobbies Congress in
support of pro-labor legislation.
, ANS: T DIF: LL2 REF: Page A1-4 OBJ: 1
7. The passage of the Wagner Act led to a tremendous surge in union membership in the
late 1930s.
ANS: T DIF: LL1 REF: Page A1-5 OBJ: 2
8. Under a closed shop arrangement, unions are not permitted, and an employer can fire
any workers who attempt to organize or join a union.
ANS: F DIF: LL1 REF: Page A1-5 OBJ: 2
9. In states that have passed right-to-work laws, workers cannot be required to join a union
in order to keep their job.
ANS: T DIF: LL1 REF: Page A1-5 OBJ: 2
10. The Taft-Hartley Act of 1947 contained many pro-union provisions, including a
recognition that closed shops are legal in any state that has not enacted a right-to-work
law.
ANS: F DIF: LL1 REF: Page A1-5 OBJ: 2
11. An open shop is an employment arrangement in which a firm can hire nonunion workers,
but these workers must join the union within a specified time period to keep their jobs.
ANS: F DIF: LL1 REF: Page A1-5 OBJ: 2
12. Employment at will defines an employment agreement between the employer and
employee as a completely voluntary relationship in which either party is free to terminate
at any time for any reason.
ANS: T DIF: LL2 REF: Page A1-4 OBJ: 2
,13. The National Labor Relations Act of 1935 (also known as the Wagner Act) made it illegal
for employers to discriminate against union members. It also required employers to
recognize certified unions and to bargain with these unions in good faith.
ANS: T DIF: LL2 REF: Page A1-5 OBJ: 2
14. Under a union shop arrangement, an employer agrees only to hire workers who already
belong to a union.
ANS: F DIF: LL2 REF: Page A1-5 OBJ: 2
15. Frank Meadows has never been a member of a union. However, the company that hired
him operates under a union shop arrangement, and Frank’s job is one covered under the
union contract. Frank will have to join the union within a specified time period if he wants
to keep his job.
ANS: T DIF: LL2 REF: Page A1-5 OBJ: 2
16. A minimills manufacturing company has both management and nonmanagement jobs at
the Phoenix location. Since Phoenix, Arizona, is a right-to-work state, the manufacturer
must operate under a closed shop arrangement.
ANS: F DIF: LL3 REF: Page A1-5 OBJ: 2
17. Rita Groh is a union leader in Wisconsin who is concerned with the problems unions
have recruiting members and raising funds. She has just heard that a bill has been
introduced in Wisconsin’s state legislature that calls for the passage of a right-to-work
law. This information is likely to make Rita very happy because such laws make it easier
to get workers to join unions.
ANS: F DIF: LL3 REF: Page A1-5 OBJ: 2
18. Arbitration is a process in which a neutral third party has the authority to resolve a
dispute by rendering a binding decision.
ANS: T DIF: LL1 REF: Page A1-7 OBJ: 3
, 19. Distributive bargaining is the traditional adversarial approach to collective bargaining.
ANS: T DIF: LL2 REF: Page A1-6 OBJ: 3
20. In interest-based collective bargaining, the two sides explore the issues in depth and
work together to find mutually acceptable solutions with a goal of creating a “win-win”
outcome.
ANS: T DIF: LL2 REF: Page A1-6 OBJ: 3
21. A lockout is a work stoppage initiated by workers when they see that the company will
not agree to their demands.
ANS: F DIF: LL2 REF: Page A1-6 OBJ: 3
22. As a labor tactic, a boycott occurs when a union and its supporters refuse to do business
with an employer during a labor dispute.
ANS: T DIF: LL2 REF: Page A1-7 OBJ: 3
23. Picketing is a legal union tactic during a labor dispute as long as it is peaceful and the
picketers don’t prevent people who don’t support the union’s position from entering the
business.
ANS: T DIF: LL2 REF: Page A1-7 OBJ: 3
24. The first step in most grievance procedures is to hire an arbitrator to organize and
oversee the grievance process.
ANS: F DIF: LL2 REF: Page A1-7 OBJ: 3
