IRE244 - Test 2
A+ Verified Exam Questions 2025 | MCQs + Full Explanations | Final Review!!
What causes labour disputes - - depends on agency, history, and strategic choice
- conflict is the result of poor relationships and poorly designed institutions
- strikes are an outcome caused by a number of factors inversely linked to unionization
Determinants of elasticity of demand for labour - when will demand for labour be less inelastic
(workers have more workers bargaining power) - - the more difficult it is to substitute capital,
technology, AI, etc for bargaining unit power
- there is a smaller share of labour costs in total costs
- When the demand for a firm's output is less elastic, the impact of changes in labor costs on
employment is less pronounced, potentially providing workers with more bargaining power in
negotiations
- The employer operates in a less volatile product/service market shielded from competitive
pressures
What determines the magnitude of union impact? - The power of unions
When is union power higher? - - when the elasticity for demand is lower
- when they work for a monopoly company
,Threat Effect - Union increases non-union wages
- Non-union employers may pay union wages to deter unionization
- Similarly, may also improve non-union working conditions
- Will cause the union impact to be understated by gross union-nonunion differential (D)
Displacement Effect - union decreases non-union wages
- Higher wages in union sector reduces employment levels in union sector
- Displaced workers enter non-unionized labour market
- Increased labour supply depresses non-union wages
- Will cause the union impact to be overstated by the gross union-nonunion differential
Reverse Causation - do unions cause high wages or are high wage earners more likely to
unionize? - Employees in high wage firms may have a strong incentive to unionize in order to
protect themselves from arbitrary dismissal form highly valued jobs
Reverse causation means that the union impact will be overestimated by the gross union-
nonunion wage differential
Union impact on wage structure - - union wage starts higher but rises less steeply
, - among unionized workers, there are narrow wage differentials
- but, they expand overall differential between union and non-unionized workforces
Union impact on benefits - - Unions have even greater effect on non-wage compensation than
on wages
- an average union member values benefits (they are more likely to be older and have
dependants)
Union impact on net productivity - Evidence is mildly positive but largely inconclusive,
depending on the data and specific circumstances - productivity is higher in unionized firms
Direction and magnitude depend on labour management relations
- good relations produce bigger positive effect, but bad reactions produce bigger negative effect
as compared to non-union firms
Union impact on overall employee relations - - combination of progressive HRM practices and
management philosophies that encourage employee voice/involvment and labor-management
cooperation will reduce the negative effects of unions and enhance the positive effects
- The impact of unions depends on the labour-management relationship
- In unionized workplaces where management adopts a co-operative orientation, we are more
likely to see a "balance" of objectives
What happens to the effects of management actions toward employees in unionized settings? -
they are more pronounced; things like
A+ Verified Exam Questions 2025 | MCQs + Full Explanations | Final Review!!
What causes labour disputes - - depends on agency, history, and strategic choice
- conflict is the result of poor relationships and poorly designed institutions
- strikes are an outcome caused by a number of factors inversely linked to unionization
Determinants of elasticity of demand for labour - when will demand for labour be less inelastic
(workers have more workers bargaining power) - - the more difficult it is to substitute capital,
technology, AI, etc for bargaining unit power
- there is a smaller share of labour costs in total costs
- When the demand for a firm's output is less elastic, the impact of changes in labor costs on
employment is less pronounced, potentially providing workers with more bargaining power in
negotiations
- The employer operates in a less volatile product/service market shielded from competitive
pressures
What determines the magnitude of union impact? - The power of unions
When is union power higher? - - when the elasticity for demand is lower
- when they work for a monopoly company
,Threat Effect - Union increases non-union wages
- Non-union employers may pay union wages to deter unionization
- Similarly, may also improve non-union working conditions
- Will cause the union impact to be understated by gross union-nonunion differential (D)
Displacement Effect - union decreases non-union wages
- Higher wages in union sector reduces employment levels in union sector
- Displaced workers enter non-unionized labour market
- Increased labour supply depresses non-union wages
- Will cause the union impact to be overstated by the gross union-nonunion differential
Reverse Causation - do unions cause high wages or are high wage earners more likely to
unionize? - Employees in high wage firms may have a strong incentive to unionize in order to
protect themselves from arbitrary dismissal form highly valued jobs
Reverse causation means that the union impact will be overestimated by the gross union-
nonunion wage differential
Union impact on wage structure - - union wage starts higher but rises less steeply
, - among unionized workers, there are narrow wage differentials
- but, they expand overall differential between union and non-unionized workforces
Union impact on benefits - - Unions have even greater effect on non-wage compensation than
on wages
- an average union member values benefits (they are more likely to be older and have
dependants)
Union impact on net productivity - Evidence is mildly positive but largely inconclusive,
depending on the data and specific circumstances - productivity is higher in unionized firms
Direction and magnitude depend on labour management relations
- good relations produce bigger positive effect, but bad reactions produce bigger negative effect
as compared to non-union firms
Union impact on overall employee relations - - combination of progressive HRM practices and
management philosophies that encourage employee voice/involvment and labor-management
cooperation will reduce the negative effects of unions and enhance the positive effects
- The impact of unions depends on the labour-management relationship
- In unionized workplaces where management adopts a co-operative orientation, we are more
likely to see a "balance" of objectives
What happens to the effects of management actions toward employees in unionized settings? -
they are more pronounced; things like
