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Labour Relations 4th Edition Test Bank

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    1 CHAPTER 1 INTRODUCTION TO LABOUR RELATIONS True/False 1. Some human resource managers use the terms industrial relations and labour relations interchangeably. Answer: True 2. There is a consensus on the meaning of the terms industrial relations and labour relations. Answer: False 3. Labour relations are important because they affect both union and non-union employees. Answer: True 4. Labour relations is defined as the study of all aspects of the union-management relationship. Answer: True 5. The issue of improving health and safety in the workplace is within the domain of industrial relations. Answer: True 6. Collective bargaining refers exclusively to the negotiation of a contact between the union and the employer. Answer: False 7. Unions have equal strength and importance in all provinces. Answer: False 8. After an employer has been unionized an employee in the bargaining unit cannot make an agreement with the employer providing for additional vacation time. Answer: True 9. When employees are not represented by a union the employment relationship is governed by the contract between the parties, common law, and employment legislation.

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    Labour Relations, 4th Edition Chapter 1 Introduction to Labour Relations 2 Answer: True 10. A unionized employer must give members of the bargaining unit reasonable notice to terminate them. Answer: False 11. The courts have the authority to order employers to reinstate non-union employees who have been wrongfully dismissed. Answer: False 12. Constructive dismissal means that an employer could not reduce an employee's pay by 15% unless the employee is consented. Answer: True 13. Unionization affects the profitability but not the productivity of employers. Answer: False 14. A systems approach to labour relations refers to the industrial relationship, parties, processes, and outputs. Answer: False 15. The processes in labour relations refer only to joint union-management activities such as contract negotiations. Answer: False 16. Human resource managers and labour relations specialists may have a different perspective on unions. Answer: True 17. Without a union, the employment relationship would be governed exclusively by agreements between employers and individual employees. Answer: False 18. “Wrongful dismissal” means that an employer must have a valid reason to terminate an employee. Answer: False

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    Labour Relations, 4th Edition Chapter 1 Introduction to Labour Relations 3 19. It is possible for collective agreements to provide less notice of termination to employees than the common law reasonable notice period. Answer: True 20. There are studies indicating that unionized employees have lower job satisfaction than non-union employees. Answer: True 21. A systems framework for labour relations contains five elements: the parties, processes, the environment, outputs, and feedback. Answer: True 22. The environmental factors affecting labour relations refer exclusively to the economy, technology, and legal issues. Answer: False 23. Countries with higher rates of unionization tend to have lower economic inequality. Answer: True 24. Labour Relations in Canada are viewed as being co-operative in nature. Answer: False 25. Some employers and unions have attempted to move to a more collaborative relationship by agreeing that contract disputes will not be resolved through strikes. Answer: True 26. The legal environment hinders collaboration between employers and unions because it provides that unions cannot agree to give up the right to strike. Answer: False

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    Labour Relations, 4th Edition Chapter 1 Introduction to Labour Relations 4 Multiple Choice 1. Labour relations is defined as the study of: a. employment in union and non-union organizations b. all aspects of the union-management relationship c. the negotiation and administration of collective agreements d. methods to improve union-management relations e. compensation in unionized workplaces Answer: b 2. When a union represents employees: a. Individual employees can negotiate terms of employment provided that the terms are better than the terms of the collective agreement. b. Employers are obligated to give reasonable notice when terminating employees. c. Disputes between the union and the employer are resolved in the courts. d. Employee job security is reduced. e. A termination of an employee could be overturned by an arbitrator. Answer: e 3. The unionization of employees at Company A is the least likely to affect: a. Company A’s compensation costs b. Company A’s productivity c. job satisfaction of employees at Company A d. employment standards legislation affecting Company A e. Company A’s policies and procedures relating to employee dispute resolution Answer: d 4. Company A is reducing production because of a decrease in demand for its product. When the company reduces the size of its unionized workforce, which of the following is correct: a. the union must be given reasonable notice b. employees must be given reasonable notice c. employees must be given the notice provided for in the collective agreement d. younger employees must be laid off first e. employees cannot be terminated unless the union consents Answer: c 5. Dunlop's model of industrial relations systems contains which of the following as elements: a. the distribution of power in society b. the context for the system c. conflict between employers and employees

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    Labour Relations, 4th Edition Chapter 1 Introduction to Labour Relations 5 d. workplace democracy e. political economy Answer: b 6. A systems framework for labour relations has the following elements: a. parties, contract negotiation, the environment, outcomes, and feedback b. the environment, parties, processes, outcomes, and feedback c. parties, processes, the environment, outcomes, and legislation d. parties, processes, feedback, and outcomes e. the environment, parties, processes, outcomes, and collective agreements Answer: b 7. The actors in Dunlop’s system are: a. workers and their agents b. free trade agreements c. society d. non-union employees e. non-government agencies Answer: a 8. The process component in a systems approach to labour relations includes which of the following: a. unilateral action by management b. unilateral action by unions c. the environment d. a and b e. a and c Answer: d 9. Which of the following is correct regarding feedback in a systems framework for labour relations: a. Experience with a process can not result in a party seeking to change the process. b. The feedback affects only the actors and processes in the system. c. Outputs of the labour relations system affect the cultural system used by the parties. d. Outputs of the labour relations system affect the legal system of the parties. e. Outputs of the labour relations system affect the individual contract of employment. Answer: d 10. A unionized employee has access to which of the following legal procedures and remedies: a. a suit for constructive dismissal

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    Labour Relations, 4th Edition Chapter 1 Introduction to Labour Relations 6 b. a suit for wrongful dismissal c. reinstatement ordered by an arbitrator d. reinstatement ordered by a judge e. damages awarded by a judge for the breach of the collective agreement Answer: c 11. The unionization of employees is the least likely to affect which of the following: a. job satisfaction of employees b. costs of operations for the employer c. job security for employees d. the reasonable notice employees are entitled to e. investment decisions made by the employer Answer: d 12. Which of the following are two dominant perspectives in the framework for labour relations: a. actors & the environment b. processes engaged in by the actors & outputs c. cost & productivity d. Terms & conditions of work e. Systems approach & the political economy approach Answer: e 13. A political economy approach to labour relations emphasizes which of the following: a. conflict between employer and employee interests b. a web of rules c. an ideology shared by employers and unions d. government intervention e. the values of employers and unions Answer: a 14. Which of the following is correct regarding the environment component in a systems approach to labour relations: a. environmental factors do not effect each other b. outputs are an element of the system c. an ideology that binds the system together is an element of the system d. the distribution of power in society is an element of the system e. unions and employers may attempt to influence or change their environment Answer: e 15. The values and beliefs of the Canadian public are part of:

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    Labour Relations, 4th Edition Chapter 1 Introduction to Labour Relations 7 a. the legal environment b. social environment c. political environment d. technological environment e. economic environment Answer: b 16. Which of the following is correct regarding the issue of employer and union collaboration: a. the legal environment may hinder collaboration b. the labour relations system is viewed as being collaborative c. collaboration is universally accepted as being good for both parties d. collaboration is part of the political economy approach to labour relations e. collaboration is an essential component in a systems approach to labour relations Answer: a 17. Which of the following is correct regarding a systems framework for labour relations: a. It establishes that employers are the key actor in labour relations. b. It minimizes the importance of environmental factors. c. It establishes that contract negotiation is the only process involved in labour relations. d. It illustrates that the components of the system are self-contained. e. It illustrates that there are numerous results or outputs. Answer: e Essay Questions 1. Describe the differences in the relationship between employers and employees in non- union and unionized environments. 2. Discuss the following statement: Labour relations are important for employers, employees, and society. 3. Two of the elements of a systems approach to labour relations are the actors and the processes or activities the actors engage in. Identify the actors in the system and describe the processes that each one could be engaged in. 4. Describe the environmental factors that could affect labour relations. 5. Describe the outputs of a systems approach to labour relations. 6. Describe the elements of a systems framework for labour relations. 7. Some of the employees of an organization have been unionized. Explain three ways that the employer could be affected.

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    8 CHAPTER 2 THE ENVIRONMENT True/False 1. Nominal wages are wages that have been adjusted for inflation. Answer: False 2. Fiscal policy refers to changes in the interest rate to affect inflation or employment levels. Answer: False 3. Employers and unions cannot contract out of employment standards, human rights, or labour relations legislation. Answer: True 4. Technological advances could be both a threat and an opportunity for unions. Answer: True 5. Labour relations legislation establishes minimum terms of employment. Answer: False 6. The legal environment affecting labour relations is not affected by the social environment. Answer: False 7. A retail store with locations in more than one province is regulated by the Canada Labour Code. Answer: False 8. Unions contend that the news media is slanted against labour. Answer: True 9. During economic downturns, unions will seek larger than usual wage increases to protect the real incomes of employees. Answer: False 10. Monetary policy refers to changes in government spending and taxation. Answer: False

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    Labour Relations, 4th Edition Chapter 2 The Environment 9 11. Human rights legislation provides for minimum terms of employment. Answer: False 12. Non-standard work is employment in developing economic sectors such as information technology. Answer: False 13. Globalization is the trend to international agreements that reduce tariff barriers between countries. Answer: False 14. The price elasticity of demand refers to the principle that if the price of a good or a service is reduced the quantity demanded increases. Answer: False 15. An elastic demand for a product means that the sales of a product are more responsive to a change in price. Answer: True 16. Price elasticity of demand refers to how much a change in price affects the quantity demanded. Answer: True 17. The stimulus packages adopted by governments to combat the 2008 -09 recession will not affect future government policy. Answer: False 18. Unions attempt to avoid the effects of the labour market that would otherwise dictate the wages of individual employees. Answer: True 19. As perceived union power increases support for unions declines. Answer: True 20. Legacy costs are the expenses associated with providing pensions and health benefits to retired workers. Answer: True 21. All employees and unions in a particular province are regulated by the labour relations legislation of the province.

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    Labour Relations, 4th Edition Chapter 2 The Environment 10 Answer: False 22. Human rights legislation in all provinces now prohibits mandatory retirement. Answer: True 23. Direct discrimination refers to a rule or conduct that is intentionally discriminatory. Answer: True 24. If an employer establishes that a rule or requirement is a BFOQ (BFOR), the employer is allowed to establish the requirement even though it is discriminatory. Answer: True 25. The Charter has been relied upon in some cases to defend employees’ freedom of expression. Answer: True

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    Labour Relations, 4th Edition Chapter 2 The Environment 11 Multiple Choice 1. Which of the following is the least likely to be affected by the macroeconomic environment: a. the demands made by unions b. the elasticity of demand for goods and services c. the demands made by employers d. the real wages of employees e. the bargaining power of the union Answer: b 2. When the value of the Canadian dollar increases, which of the following is correct? a. employment in all sectors of the economy will be reduced b. real wages will be decreased c. the price elasticity of demand for all goods and services will be reduced d. union concerns about job security will be reduced e. real value will increase Answer: e 3. Which of the following is the least likely to have a negative impact on Canadian manufacturers and unions: a. trade practices of foreign governments b. monetary policy aimed at reducing inflation c. the price elasticity of demand for the product produced by the employer d. a decline in the value of the Canadian dollar e. an increase in the value of the Canadian dollar Answer: d 4. Which of the following does the macroeconomic environment refer to: a. the rate of unemployment b. the state of economy as a whole c. the rate of inflation d. the period of recession e. the labour relations Answer: b 5. Diversity refers to a set of labour force that includes people of: a. full time workers b. female workers c. different religions, ethnicity, sexual orientations & disabilities

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    Labour Relations, 4th Edition Chapter 2 The Environment 12 d. older workers e. younger workers Answer: c 6. Which of the following is an economic factor affecting labour relations in terms of the shift from manufacture of goods to the production of services: a. deregulation b. mergers c. deindustrialization d. globalization e. downsizing Answer: c 7. From 2004 to 2008 employment in manufacturing in Canada: a. remained the same b. was reduced by 14% c. increased by 14% d. was reduced by 24% e. increased by 24% Answer: b 8. The shift from the government limiting market entrants and controlling prices to a system where the market is open to competition is: a. globalization b. trade liberalization c. deregulation d. deindustrialization e. downsizing Answer: c 9. When a firm produces a good or service that has an elastic demand it will: a. be less able to increase price without losing customers b. be more able to increase price without losing customers c. decrease sales and revenue by lowering price d. be able to change price without any effect on sales and revenue e. increase the quantity demanded by increasing the price Answer: a 10. Which of the following groups of employees is the most likely to be concerned with the pension provisions in a collective agreement: a. part-time employees b. younger employees c. male employees

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    Labour Relations, 4th Edition Chapter 2 The Environment 13 d. older employees e. all employees have the same preferences Answer: d 11. Which of the following is correct: a. The aging workforce is a concern for employers, but not for unions. b. Female employees are less likely than male employees to support unionization. c. Diversity is a concern for employers, but not for unions. d. The majority of part-time employees would prefer full-time work. e. It has been more difficult for unions to organize part-time employees than full-time employees. Answer: e 12. Which of the following is correct regarding technological change? a. it always poses a threat to unions b. it always leads to improvements in health and safety c. it does not affect the location of work d. it does not affect compensation e. it affects the ways that unions deal with employees Answer: e 13. Health and safety, compensation, and job security are likely to be most affected by: a. mergers b. globalization c. deregulation d. increased diversity e. technological change Answer: e 14. Which of the following is correct regarding the social environment? a. it does not impact the law that regulates labour relations b. attitudes towards unions are the same across Canada c. it does not affect the propensity of employees to join unions d. it impacts the bargaining power of the union and the employer e. it has led to the enactment of right-to-work legislation Answer: d 15. Which of the following is a federally regulated employer: a. a retail store with locations in more than one province b. a bank c. an auto-manufacturing firm with plants in more than one province d. a retail store in Ontario e. a retail store in Nova Scotia

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    Labour Relations, 4th Edition Chapter 2 The Environment 14 Answer: b 16. The Highlands Store sells hiking and canoeing equipment. The company has at least one store in every Canadian province. The company’s head office is located in Nova Scotia. If a union attempts to organize the employees of one of the company’s stores located in Manitoba, which of the following applies: a. Nova Scotia labour relations legislation b. federal labour relations legislation c. Manitoba labour relations legislation d. British Columbia labour relations legislation e. Ontario labour relations legislation Answer: c 17. ABC Company is a national courier business with depots in all provinces. The company’s head office is located in British Columbia. If a union attempts to organize the employees of one of the company’s depots located in Alberta, which of the following applies: a. The Canada Labour Code b. Alberta labour relations legislation c. British Columbia labour relations legislation d. Ontario labour relations legislation e. Manitoba labour relations legislation Answer: a 18. The fact that the jurisdiction to enact employment and labour relations legislation is divided between the federal government and the provinces leads to certain consequences. Which of the following is correct regarding the division of authority: a. It increases the costs of employers that carry on business in more than one province. b. It could cause confusion regarding the relevant rules of employment. c. It does not allow the federal government to deal with issues that are unique to federally regulated employers. d. a and b e. a, b, and c Answer: d 19. Which of the following regulates minimum terms of employment? a. labour relations legislation b. human rights legislation c. employment standards legislation d. Canadian Charter of Rights and Freedoms e. the duty to accommodate Answer: c

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    Labour Relations, 4th Edition Chapter 2 The Environment 15 20. The process that must be followed for a union to obtain the right to represent employees is set out in which of the following? a. labour relations legislation b. human rights legislation c. health and safety legislation d. employment standards legislation e. Canadian Charter of Rights and Freedoms Answer: a 21. In all jurisdictions unions and employers are prohibited from discriminating on the basis of: a. a marital status b. social views c. political belief d. religious opinions e. economic status Answer: a 22. Unions and employers are prohibited from contracting out of: a. Collective bargaining b. employment standards legislation c. charter of rights and freedom d. Canadian parliamentary system e. Canadian commonwealth federation Answer: b 23. Which of the following is correct? a. Direct discrimination is unintentional. b. Disability is a physical or mental illness that is permanent. c. Disability refers to physical health issues such as a cancer; however, it does not include mental health issues such as depression. d. Mandatory retirement is allowed in most jurisdictions. e. Addiction to a drug is a disability. Answer: e 24. The Canadian Charter of Rights and Freedoms has been relied upon to: a. extend benefits to same-sex partners b. prohibit the mandatory deduction of union dues c. prohibit mandatory union membership d. protect the right to strike e. a and b Answer: a

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