Labour Relations 4th Edition Test Bank

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1CHAPTER 1INTRODUCTION TO LABOUR RELATIONSTrue/False1.Some human resource managers use the terms industrial relations and labour relationsinterchangeably.Answer: True2.There is a consensus on the meaning of the terms industrial relations and labour relations.Answer: False3.Labour relations are important because they affect both union and non-union employees.Answer: True4.Labour relations is defined as the study of all aspects of the union-managementrelationship.Answer: True5.The issue of improving health and safety in the workplace is within the domain ofindustrial relations.Answer: True6.Collective bargaining refers exclusively to the negotiation of a contact between the unionand the employer.Answer: False7.Unions have equal strength and importance in all provinces.Answer: False8.After an employer has been unionized an employee in the bargaining unit cannot make anagreement with the employer providing for additional vacation time.Answer: True9.When employees are not represented by a union the employment relationship is governedby the contract between the parties, common law, and employment legislation.

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Labour Relations, 4th EditionChapter 1 Introduction to Labour Relations2Answer: True10.A unionized employer must give members of the bargaining unit reasonable notice toterminate them.Answer: False11.The courts have the authority to order employers to reinstate non-union employees whohave been wrongfully dismissed.Answer: False12.Constructive dismissal means that an employer could not reduce an employee's pay by15% unless the employee is consented.Answer: True13.Unionization affects the profitability but not the productivity of employers.Answer: False14.A systems approach to labour relations refers to the industrial relationship, parties,processes, and outputs.Answer: False15.The processes in labour relations refer only to joint union-management activities such ascontract negotiations.Answer: False16.Human resource managers and labour relations specialists may have a different perspectiveon unions.Answer: True17.Without a union, the employment relationship would be governed exclusively byagreements between employers and individual employees.Answer: False18.“Wrongful dismissal” means that an employer must have a valid reason to terminate anemployee.Answer: False

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Labour Relations, 4th EditionChapter 1 Introduction to Labour Relations319.It is possible for collective agreements to provide less notice of termination to employeesthan the common law reasonable notice period.Answer: True20.There are studies indicating that unionized employees have lower job satisfaction thannon-union employees.Answer: True21.A systems framework for labour relations contains five elements: the parties, processes,the environment, outputs, and feedback.Answer: True22.The environmental factors affecting labour relations refer exclusively to the economy,technology, and legal issues.Answer: False23.Countries with higher rates of unionization tend to have lower economic inequality.Answer: True24.Labour Relations in Canada are viewed as being co-operative in nature.Answer: False25.Some employers and unions have attempted to move to a more collaborative relationshipby agreeing that contract disputes will not be resolved through strikes.Answer: True26.The legal environment hinders collaboration between employers and unions because itprovides that unions cannot agree to give up the right to strike.Answer: False

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Labour Relations, 4th EditionChapter 1 Introduction to Labour Relations4Multiple Choice1.Labour relations is defined as the study of:a.employment in union and non-union organizationsb.all aspects of the union-management relationshipc.the negotiation and administration of collective agreementsd.methods to improve union-management relationse.compensation in unionized workplacesAnswer: b2.When a union represents employees:a.Individual employees can negotiate terms of employment provided that the terms arebetter 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: e3.The unionization of employees at Company A is theleastlikely to affect:a.Company A’s compensation costsb.Company A’s productivityc.job satisfaction of employees at Company Ad.employment standards legislation affecting Company Ae.Company A’s policies and procedures relating to employee dispute resolutionAnswer: d4.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 iscorrect:a.the union must be given reasonable noticeb.employees must be given reasonable noticec.employees must be given the notice provided for in the collective agreementd.younger employees must be laid off firste.employees cannot be terminated unless the union consentsAnswer: c5.Dunlop's model of industrial relations systems contains which of the following aselements:a.the distribution of power in societyb.the context for the systemc.conflict between employers and employees

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Labour Relations, 4th EditionChapter 1 Introduction to Labour Relations5d.workplace democracye.political economyAnswer: b6.A systems framework for labour relations has the following elements:a.parties, contract negotiation, the environment, outcomes, and feedbackb.the environment, parties, processes, outcomes, and feedbackc.parties, processes, the environment, outcomes, and legislationd.parties, processes, feedback, and outcomese.the environment, parties, processes, outcomes, and collective agreementsAnswer: b7.The actors in Dunlop’s system are:a.workers and their agentsb.free trade agreementsc.societyd.non-union employeese.non-government agenciesAnswer: a8.The process component in a systems approach to labour relations includes which of thefollowing:a.unilateral action by managementb.unilateral action by unionsc.the environmentd.a and be.a and cAnswer: d9.Which of the following is correct regarding feedback in a systems framework for labourrelations: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: d10.A unionized employee has access to which of the following legal procedures andremedies:a.a suit for constructive dismissal

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Labour Relations, 4th EditionChapter 1 Introduction to Labour Relations6b.a suit for wrongful dismissalc.reinstatement ordered by an arbitratord.reinstatement ordered by a judgee.damages awarded by a judge for the breach of the collective agreementAnswer: c11.The unionization of employees is theleastlikely to affect which of the following:a.job satisfaction of employeesb.costs of operations for the employerc.job security for employeesd.the reasonable notice employees are entitled toe.investment decisions made by the employerAnswer: d12.Which of the following are two dominant perspectives in the framework for labour relations:a.actors & the environmentb.processes engaged in by the actors & outputsc.cost & productivityd.Terms & conditions of worke.Systems approach & the political economy approachAnswer: e13.A political economy approach to labour relations emphasizes which of the following:a.conflict between employer and employee interestsb.a web of rulesc.an ideology shared by employers and unionsd.government interventione.the values of employers and unionsAnswer: a14.Which of the following is correct regarding the environment component in a systemsapproach to labour relations:a.environmental factors do not effect each otherb.outputs are an element of the systemc.an ideology that binds the system together is an element of the systemd.the distribution of power in society is an element of the systeme.unions and employers may attempt to influence or change their environmentAnswer: e15.The values and beliefs of the Canadian public are part of:

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Labour Relations, 4th EditionChapter 1 Introduction to Labour Relations7a.the legal environmentb.social environmentc.political environmentd.technological environmente.economic environmentAnswer: b16.Which of the following is correct regarding the issue of employer and union collaboration:a.the legal environment may hinder collaborationb.the labour relations system is viewed as being collaborativec.collaboration is universally accepted as being good for both partiesd.collaboration is part of the political economy approach to labour relationse.collaboration is an essential component in a systems approach to labour relationsAnswer: a17.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: eEssay Questions1.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 theprocesses or activities the actors engage in. Identify the actors in the system and describethe 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 thatthe employer could be affected.

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8CHAPTER 2THE ENVIRONMENTTrue/False1.Nominal wages are wages that have been adjusted for inflation.Answer: False2.Fiscal policy refers to changes in the interest rate to affect inflation or employment levels.Answer: False3.Employers and unions cannot contract out of employment standards, human rights, or labour relationslegislation.Answer: True4.Technological advances could be both a threat and an opportunity for unions.Answer: True5.Labour relations legislation establishes minimum terms of employment.Answer: False6.The legal environment affecting labour relations is not affected by the social environment.Answer: False7.A retail store with locations in more than one province is regulated by theCanada Labour Code.Answer: False8.Unions contend that the news media is slanted against labour.Answer: True9.During economic downturns, unions will seek larger than usual wage increases to protect the realincomes of employees.Answer: False10.Monetary policy refers to changes in government spending and taxation.Answer: False

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Labour Relations, 4th EditionChapter 2 The Environment911.Human rights legislation provides for minimum terms of employment.Answer: False12.Non-standard work is employment in developing economic sectors such as information technology.Answer: False13.Globalization is the trend to international agreements that reduce tariff barriers between countries.Answer: False14.The price elasticity of demand refers to the principle that if the price of a good or a service is reduced thequantity demanded increases.Answer: False15.An elastic demand for a product means that the sales of a product are more responsive to a change inprice.Answer: True16.Price elasticity of demand refers to how much a change in price affects the quantity demanded.Answer: True17.The stimulus packages adopted by governments to combat the 2008 -09 recession will not affect futuregovernment policy.Answer: False18.Unions attempt to avoid the effects of the labour market that would otherwise dictate the wages ofindividual employees.Answer: True19.As perceived union power increases support for unions declines.Answer: True20.Legacy costs are the expenses associated with providing pensions and health benefits to retired workers.Answer: True21.All employees and unions in a particular province are regulated by the labour relations legislation of theprovince.

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Labour Relations, 4th EditionChapter 2 The Environment10Answer: False22.Human rights legislation in all provinces now prohibits mandatory retirement.Answer: True23.Direct discrimination refers to a rule or conduct that is intentionally discriminatory.Answer: True24.If an employer establishes that a rule or requirement is a BFOQ (BFOR), the employer is allowed toestablish the requirement even though it is discriminatory.Answer: True25.TheCharterhas been relied upon in some cases to defend employees’ freedom of expression.Answer: True

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Labour Relations, 4th EditionChapter 2 The Environment11Multiple Choice1.Which of the following is theleastlikely to be affected by the macroeconomic environment:a.the demands made by unionsb.the elasticity of demand for goods and servicesc.the demands made by employersd.the real wages of employeese.the bargaining power of the unionAnswer: b2.When the value of the Canadian dollar increases, which of the following is correct?a.employment in all sectors of the economy will be reducedb.real wages will be decreasedc.the price elasticity of demand for all goods and services will be reducedd.union concerns about job security will be reducede.real value will increaseAnswer: e3.Which of the following is theleastlikely to have a negative impact on Canadian manufacturers andunions:a.trade practices of foreign governmentsb.monetary policy aimed at reducing inflationc.the price elasticity of demand for the product produced by the employerd.a decline in the value of the Canadian dollare.an increase in the value of the Canadian dollarAnswer: d4.Which of the following does the macroeconomic environment refer to:a.the rate of unemploymentb.the state of economy as a wholec.the rate of inflationd.the period of recessione.the labour relationsAnswer: b5.Diversity refers to a set of labour force that includes people of:a.full time workersb.female workersc.different religions, ethnicity, sexual orientations & disabilities

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Labour Relations, 4th EditionChapter 2 The Environment12d.older workerse.younger workersAnswer: c6.Which of the following is an economic factor affecting labour relations in terms of the shift frommanufacture of goods to the production of services:a.deregulationb.mergersc.deindustrializationd.globalizatione.downsizingAnswer: c7.From 2004 to 2008 employment in manufacturing in Canada:a.remained the sameb.was reduced by 14%c.increased by 14%d.was reduced by 24%e.increased by 24%Answer: b8.The shift from the government limiting market entrants and controlling prices to a system where themarket is open to competition is:a.globalizationb.trade liberalizationc.deregulationd.deindustrializatione.downsizingAnswer: c9.When a firm produces a good or service that has an elastic demand it will:a.be less able to increase price without losing customersb.be more able to increase price without losing customersc.decrease sales and revenue by lowering priced.be able to change price without any effect on sales and revenuee.increase the quantity demanded by increasing the priceAnswer: a10.Which of the following groups of employees is the most likely to be concerned with the pensionprovisions in a collective agreement:a.part-time employeesb.younger employeesc.male employees

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Labour Relations, 4th EditionChapter 2 The Environment13d.older employeese.all employees have the same preferencesAnswer: d11.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: e12.Which of the following is correct regarding technological change?a.it always poses a threat to unionsb.it always leads to improvements in health and safetyc.it does not affect the location of workd.it does not affect compensatione.it affects the ways that unions deal with employeesAnswer: e13.Health and safety, compensation, and job security are likely to be most affected by:a.mergersb.globalizationc.deregulationd.increased diversitye.technological changeAnswer: e14.Which of the following is correct regarding the social environment?a.it does not impact the law that regulates labour relationsb.attitudes towards unions are the same across Canadac.it does not affect the propensity of employees to join unionsd.it impacts the bargaining power of the union and the employere.it has led to the enactment of right-to-work legislationAnswer: d15.Which of the following is a federally regulated employer:a.a retail store with locations in more than one provinceb.a bankc.an auto-manufacturing firm with plants in more than one provinced.a retail store in Ontarioe.a retail store in Nova Scotia

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Labour Relations, 4th EditionChapter 2 The Environment14Answer: b16.The Highlands Store sells hiking and canoeing equipment. The company has at least one store in everyCanadian province. The company’s head office is located in Nova Scotia. If a union attempts toorganize the employees of one of the company’s stores located in Manitoba, which of the followingapplies:a.Nova Scotia labour relations legislationb.federal labour relations legislationc.Manitoba labour relations legislationd.British Columbia labour relations legislatione.Ontario labour relations legislationAnswer: c17. ABC Company is a national courier business with depots in all provinces. The company’s head office islocated in British Columbia. If a union attempts to organize the employees of one of the company’s depotslocated in Alberta, which of the following applies:a.TheCanada Labour Codeb.Alberta labour relations legislationc.British Columbia labour relations legislationd.Ontario labour relations legislatione.Manitoba labour relations legislationAnswer: a18.The fact that the jurisdiction to enact employment and labour relations legislation is divided betweenthe federal government and the provinces leads to certain consequences. Which of the following is correctregarding 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 regulatedemployers.d.a and be.a, b, and cAnswer: d19.Which of the following regulates minimum terms of employment?a.labour relations legislationb.human rights legislationc.employment standards legislationd.Canadian Charter of Rights and Freedomse.the duty to accommodateAnswer: c

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Labour Relations, 4th EditionChapter 2 The Environment1520.The process that must be followed for a union to obtain the right to represent employees is set out inwhich of the following?a.labour relations legislationb.human rights legislationc.health and safety legislationd.employment standards legislatione.Canadian Charter of Rights and FreedomsAnswer: a21.In all jurisdictions unions and employers are prohibited from discriminating on the basis of:a.a marital statusb.social viewsc.political beliefd.religious opinionse.economic statusAnswer: a22.Unions and employers are prohibited from contracting out of:a.Collective bargainingb.employment standards legislationc.charter of rights and freedomd.Canadian parliamentary systeme.Canadian commonwealth federationAnswer: b23.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 mentalhealth issues such as depression.d.Mandatory retirement is allowed in most jurisdictions.e.Addiction to a drug is a disability.Answer: e24. TheCanadian Charter of Rights and Freedomshas been relied upon to:a.extend benefits to same-sex partnersb.prohibit the mandatory deduction of union duesc.prohibit mandatory union membershipd.protect the right to strikee.a and bAnswer: a

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