Industrial Relations In Canada 3rd Edition By Hebdon Brown -Test Bank

 

 

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Sample Test

Chapter_3_Economic_Social_and_Political_Environments   1. According to the Organization for Economic Co-operation and Development, Canada is among the worst countries in the developed world in term of widening income gap.   a. True   b. False   ANSWER:   True

 

2. Globalization has resulted in a greater mobility of capital and decreases in the flow of goods.   a. True   b. False   ANSWER:   False

 

3. An elastic supply curve for labour means that a small increase in wages will significantly increase labour supply.   a. True   b. False   ANSWER:   True

 

4. An industry is said to be labour intensive if labour costs are a high proportion of total costs.   a. True   b. False   ANSWER:   True

 

5. Unions will have more bargaining power when there is little competition in the firm’s product market.   a. True   b. False   ANSWER:   True

 

6. A monopsony occurs when an organization is the sole market buyer of a good, service, or labour.   a. True   b. False   ANSWER:   True

 

7. A key economic assumption is that labour is perfectly mobile.   a. True   b. False   ANSWER:   True

 

8. In theory and in practice, labour markets are always competitive.   a. True   b. False   ANSWER:   False

 

9. Monopsony exists when a firm is a wage setter but not a wage taker.   a. True   b. False   ANSWER:   True

 

10. According to the Gallup Organization, there is little evidence that demand for unionization in North America is declining.   a. True   b. False   ANSWER:   True

 

11. An argument in favour of restructuring policies is that they benefit workers who lack the necessary skills to compete in the new economy.   a. True   b. False   ANSWER:   False

 

12. In 2013, The Conference Board of Canada concluded that more than one in seven Canadian children live in poverty.   a. True   b. False   ANSWER:   True

 

13. Work organization, labour force composition, and individualization of human resources are examples of some of the profound changes that have occurred over the last 30 years.   a. True   b. False   ANSWER:   True

 

14. Temporary and casual work falls under the category of contingent work.   a. True   b. False   ANSWER:   True

 

15. Unions have had less success organizing contingent workers.   a. True   b. False   ANSWER:   True

 

16. In contrast to its American counterpart, the Canadian labour movement has managed to organize  new members and avoid the steep decline in union density found in the United States.   a. True   b. False   ANSWER:   True

 

17. The Canadian parliamentary system and constitutional fragmentation mean that labour has been able to use its political association with the NDP, and in Quebec with the PQ, to win significant legislative gains.   a. True   b. False   ANSWER:   True

 

18. In today’s world, what influences industrial relations?   a. declining labour intensity   b. macroeconomic policy regarding liberalization of markets   c. rising regional unemployment   d. very elastic labour supply   ANSWER:   b

 

19. What does “elasticity of supply” mean?   a. Labour responds to a decreased demand by raising the wage rate.   b. Wage changes are flexible.   c. Labour supply is increased due to a small change in the wage rate.   d. A steep demand curve results in large wage increases.   ANSWER:   c

 

20. In the context of elasticity of demand, what does “steep demand” mean?   a. A large increase in the quantity demanded will cause a small increase in wages.   b. A small increase in the quantity demanded will cause a large increase in wages.   c. A small increase in the quantity demanded will cause a small increase in wages.   d. A large increase in the quantity demanded will cause a large increase in wages.   ANSWER:   b

 

21. The shape of the demand curve is important, because it influences a union’s ability to raise wages without significantly affecting employment levels. What is this effect called?   a. wage-employment trade-off   b. wage elasticity   c. substitution effect   d. labour intensity   ANSWER:   a

 

22. What do Marshall’s four conditions do?   a. explain what elasticity means   b. help management in their evaluating procedures   c. describe the guidelines for proper bargaining   d. determine labour responsiveness to change in wages   ANSWER:   d

 

23. According to Marshall’s conditions, when will unions have more power?   a. when product markets are very competitive   b. when it is easy to substitute labour for capital   c. when there is less competition in the firm’s product market   d. when the market for substitutes is competitive   ANSWER:   c

 

24. In economic theory, what kinds of markets generally have lower wages and employment levels?   a. monopsonistic markets   b. poorly mobile job markets   c. highly mobile job markets   d. monopolistic markets   ANSWER:   a

 

25. Which statement best describes the reason for union decline?   a. There is more individual protection under health and safety laws.   b. Globalization has reduced levels of competition.   c. Improved human resources practices meet individual needs.   d. There have been significant changes in employment legislation.   ANSWER:   c

 

26. Which statement best describes the current labour environment?   a. Industrial relations in Canada has remained unchanged over the years.   b. Unions are happy with the current labour system in North America.   c. Governments are increasingly reluctant to intervene in labour markets.   d. More women, occupational shift workers, and contingent workers are affecting unions.   ANSWER:   d

 

27. What is teleworking an example of?   a. contingent work   b. occupational shifts   c. employee demands   d. union demands   ANSWER:   a

 

28. According to Statistics Canada, which statement best describes people who are employed part-time?   a. They work the same hours as all other part-time employees.   b. They usually work 35 hours per week.   c. They work fewer hours than the average employee.   d. They usually work in their main job less than 30 hours per week.   ANSWER:   d

 

29. Which term best describes the act of working at a nontraditional location outside the employer’s workplace?   a. part-time work   b. contingent work   c. flextime work   d. telework   ANSWER:   d

 

30. Which statement best summarizes the challenges facing today’s Canadian unions?   a. Contingent workers are difficult to organize.   b. Part-time work represents four percent of today’s labour force.   c. Work in Canada is undergoing significant economic change.   d. Workers are more interested in politics than workplace issues.   ANSWER:   a

 

31. Which term refers to the desire of both employees and employers to achieve a balance between workplace obligations and personal responsibilities?   a. work–employment trade-off   b. work–life balance   c. wage–work trade-off   d. life–employment balance   ANSWER:   b

 

32. According to the textbook, which category lies outside the framework for analysis of work–life balance?   a. economic   b. demographic   c. social   d. legal   ANSWER:   d

 

33. Which of the following best explains why there has not been a steep union decline in Canada?   a. occupational shift from manufacturing to service   b. the existence of labour-friendly laws   c. the political system favours business   d. a single labour law covers most workers   ANSWER:   b

 

34. What are Marshall’s four conditions related to wage elasticity?   a. wages, labour market, substitution effect, and product market   b. product market, substitution effect, market for substitutes, and labour intensity   c. labour intensity, market for products, substitution effect, and wages   d. labour market, work–life balance, product market, and wages   ANSWER:   b

 

35. Sometimes it is easier to use machines and technology than to use labour. Which term refers to this type of situation?   a. product market   b. substitution effect   c. electronic commerce   d. labour demand   ANSWER:   b

 

36. Sears Canada implemented a planned outsourcing of 1600 call-centre jobs. What did this situation exemplify?   a. the substitution effect of capital for labour   b. the effect of the wage–employment trade-off in a highly competitive environment   c. an inelastic demand for labour   d. the existence of labour market equilibrium   ANSWER:   b

 

37. Why do new forms of work in a post-industrial economy present major challenges for collective bargaining?   a. Industrial relations practices were designed for workers in stable, long-term employment.   b. Unions are uncertain how to manage their diverse new forms of power.   c. The great variety of labour legislation makes it difficult to know which laws to follow.   d. Contemporary workers are very dissatisfied with their jobs.   ANSWER:   a

 

38. In a global economy where competition is intense, why will employers have greater bargaining power?   a. demand for labour is elastic   b. supply of labour is elastic   c. substitutes for local labour are expensive   d. product markets are less competitive   ANSWER:   a

 

39. Which statement best describes the current Canadian economy?   a. International immigrants’ birth rates do not affect potential labour supply.   b. Retirement choices, leisure choices, and career patterns have little impact on labour supply.   c. Unions are building a base of power from sources other than current labour markets.   d. As wages rise, workers want and take more leisure time.   ANSWER:   c

 

40. What are noneconomic sources of union power?   a. immigration policy   b. work–leisure lobbyists   c. community groups   d. mandatory union dues check-off   ANSWER:   c

 

41. What concept is illustrated by the migration of Canadian citizens from one province to another?   a. contingent work   b. institutional barriers to supply   c. demographic factors   d. labour intensity   ANSWER:   c

 

42. Which of the following conditions will limit labour mobility?   a. low income   b. fluency in several languages   c. a small local population   d. high local unemployment   ANSWER:   a

 

43. What does Weber’s theory of social closure tell us?   a. Many occupations erect barriers to restrict supply and affect earnings.   b. Many institutions remove barriers to increase supply and maintain earnings.   c. Many occupations erect barriers to increase supply and suppress earnings.   d. Many institutions remove barriers to restrict supply and enhance earnings.   ANSWER:   a

 

44. What phenomenon is exemplified by the emergence of specialized qualifications and certifications for professional associations?   a. noneconomic sources of labour power   b. monopsony   c. Weber’s closure theory   d. compositional changes in the workforce   ANSWER:   c

 

45. What is a hiring hall?   a. a management-run operation used to recruit workers   b. a human resources tactic used to encourage employees to take different jobs within the firm   c. a union-run centre that coordinates the match between labour and job sites   d. a joint union–management plan to recruit workers   ANSWER:   c

 

46. Support for unions in North America remains strong, and yet surveys show workers are also very satisfied with their jobs and pay.  What can explain these results?   a. The reported studies used different research methods and obtained different results.   b. Workers are generally unaware of economic changes that affect them.   c. Workers want a collective, independent voice at work.   d. Results from studies conducted in Quebec influenced the research findings.   ANSWER:   c

 

47. What relationship exists between poverty rates and the environment of industrial relations?   a. Poverty rates in North America have declined as average incomes have risen since 1989.   b. Union and non-union workers experience nearly identical earning inequality.   c. The widening gap between the wealthy and the poor is directly linked to union decline.   d. Union support is greatest among the “working poor.”   ANSWER:   c

 

48. Why are poverty rates in Canada increasing?   a. More elderly people are living in poverty.   b. Disposable income has fallen.   c. More children are living below the poverty line.   d. Mandatory retirement has been abolished.   ANSWER:   b

 

49. How have unions managed to remain an important force in the Canadian workplace despite major structural changes?   a. There are many more contingent workers in today’s workforce.   b. Workers in small workplaces have unionized.   c. Large numbers of unionized workers have been laid off in manufacturing.   d. Unions are popular in information technology firms.   ANSWER:   b

 

50. Why do new forms of work in a post-industrial economy present major challenges for collective bargaining?   a. Industrial relations practices were designed for workers in stable, long-term employment.   b. Unions are uncertain how to manage their diverse new forms of power.   c. The great variety of labour legislation makes it difficult to know which laws to follow.   d. Contingent workers are very dissatisfied with their jobs.   ANSWER:   a

 

51. Which important social and historic experience has led Canada to take a different approach than the United States’ opposition to collective bargaining?   a. The 1982 Charter of Rights and Freedoms facilitates collective bargaining.   b. American-owned companies in Canada operate under U.S. law.   c. Right to work legislation in the U.S. does not apply to Canadians working in the U.S.   d. Employment legislation is controlled by the federal government.   ANSWER:   a

 

52. Which statement best explains why unions have declined rapidly in the U.S. but have maintained strength in Canada?   a. The American economy has shifted away from manufacturing, but the Canadian economy has not.   b. More Canadian families benefit from a stay-at-home parent who does not work.   c. Canadian political parties have little power to change legislation.   d. Canada has over a dozen labour laws, while the U.S. has only one.   ANSWER:   d

 

53. Which statement best summarized why globalization is considered a force that restricts governments?   a. Countries have to comply with international policies.   b. The federal government can experiment with reforms.   c. Progressive governments influence global labour policy.   d. Most large countries have conservative governments.   ANSWER:   a

 

54. Many believe that unions have outlived their usefulness. List several reasons that support the belief that unions will eventually decline? ANSWER:   1. Globalization and the greater pressures on firms to be competitive 2. More individual protection under employment laws 3. Changes in the nature of work, with employees exercising greater control over scheduling (e.g., teleworking, self-employment) 4. Improved human resources practices geared toward individual needs

 

55. Define the five types of contingent work. ANSWER:   1. Part-time: work schedule of less than 30 hours a week 2. Contingent: (a) temporary or casual work, and/or (b) a group of professional workers who desire the freedom and flexibility of contingent work 3. Flextime: permits employees to start earlier or later as long as they work the required number of hours per week 4. Compressed work week: condensing the total hours in the traditional work week into fewer days (e.g., 40-hour work week done in four days) 5. Teleworking: working at home, in a satellite working centre, or in another non-traditional workplace, either full-time or part-time, and using telecommunications

 

56. What are the components of work–life conflict? ANSWER:   1. Role overload 2. Work interferes with family (i.e., long hours limit ability to participate in family roles) 3. Family interferes with work (i.e., family demands prevent attendance at work)

 

57. How has the Canadian labour movement organized new members and avoided union decline? ANSWER:   1. Labour friendly laws in Canada 2. Labour has received support from political parties. a. Not all eggs are in one basket: Under the Canadian constitution, labour is a provincial matter. Twelve labour laws in the country make it feasible for change to occur in legislation, which provides for flexibility. b. The parliamentary system of government: In Canada’s multi-party system, minority governments are possible. This means that the smaller coalition will have a list of demands that must be met for the governing coalition to exist and survive. Labour has been able to use its political association with the NDP and PQ.

 

58. What three important social and historic experiences have led Canada to accept collective bargaining? ANSWER:   1. The 1982 Canadian Charter protected individual rights but facilitated collective bargaining. 2. American firms in Canada are more restricted in anti-union activities. 3. Canada has rejected the U.S. right-to-work approach, which prevents unions from forcing nonmembers to join or pay dues despite enjoying the benefits of unionization.

 

59. Marshall (1920) describes four theoretical conditions that determine the wage elasticity of labour. Describe these four conditions. ANSWER:   Product market: The more competitive the product market, the greater the employment impact of a wage increase and the elasticity of demand for labour. This is known as the wage–employment trade-off in the sense that when a union increases wages, the higher costs may be reflected in reduced sales. Reduced sales cause reduced demand for labour. Hence, unions will tend to have more power when there is less competition in the firm’s product market. Industries where firms have some degree of monopoly power can more easily absorb a wage increase without affecting employment levels. They can do this because their monopoly power gives them room to raise prices without suffering lower sales (and thus employment levels). Thus, to the extent that free trade increases market competition, union power will be reduced. In terms of elasticity, the more inelastic the demand for labour, the lower the employment trade-off from a wage increase and the greater, therefore, union power. Substitution effect: The easier it is to substitute capital (machines, new technology, etc.) for labour, the less power labour will have to raise wages. The firm that can easily substitute other factors of production for labour will possess more bargaining power. This substitution effect may be a longer-term phenomenon, since technological change may take years to implement. Certain jobs are more essential to the production process than others and hence harder to substitute. For example, airlines cannot function without pilots, and buildings cannot be constructed without electricians. Labour intensity: Labour intensity is the degree to which labour costs account for production costs. Thus, an industry is labour-intensive if labour costs are a high proportion of total costs. The smaller the proportion of total costs labour is, the lower the employment impact of a wage increase will be, thus giving labour more power. In firms that are highly capital-intensive (e.g., high tech, printing, aerospace), labour will have more bargaining power according to this theory, because firms can absorb a wage increase without a serious impact on total costs and employment. On the other hand, many highly labour-intensive public services, such as police and teachers, will have less bargaining power. Markety for Substitutes: Finally, the more competitive the market for substitute factors of production is, the greater the bargaining power firms will have. The cheaper and more available these substitutes, the greater the impact on employment, and hence the greater the employer’s bargaining power.

 

60. Explain three main factors that have contributed to the impact of compositional changes on unions? ANSWER:   More women: There was a substantial shift in the proportion of women in unions from just 12 percent in 1977 to 48 percent in 2004. By 2012 slightly more female than male employees belonged to a union or were covered by a collective agreement, at 32.8 percent for women and 30.3 percent for men (ESDC, 2015). This shift reflected, in part, the significant growth of the services sector and the corresponding decline in manufacturing over the period. Occupational shifts: Over the past 10 years, unions have made significant gains among women, youth, and workers in public administration and in the fast-growing childcare and home-support sectors. On the other hand, unions lost members in manufacturing and technical health fields (medical, dental, veterinary, and therapeutic). Contingent workers: Part-time. A person is considered to be employed part-time when the number of hours worked at the main job is usually less than thirty hours per week. Contingent. There is no accepted definition of contingent work. It falls into two broad categories of workers: (1) those who have traditionally worked on a temporary or casual basis and (2) a smaller but growing group of professional and technical contingent workers who desire the freedom and flexibility provided by contingent work. Flextime. Flextime, as the name indicates, permits employees to start earlier or later as long as the required number of hours are worked per week. The advantage for employees is that they can travel outside of morning and/or afternoon rush hours and may be better able to juggle family commitments (e.g., day care, school, etc.) Compressed work weeks. The compressed work week involves reallocating the work time by condensing the total hours in the traditional work week into fewer days. A typical example is the four-day, 40-hour work week (4/40), in which employees work four 10-hour days. While the longer work day can create more pressure, some employees prefer this schedule because of the increased number of days off. Teleworking. Teleworking may involve working at home, a satellite work centre, or other non-traditional workplace, either full-time or part-time, and using telecommunications and the electronic processing of information. Unions have had less success organizing contingent workers. In 2013, for example, 24.5 percent of part-time employees were in unions, compared to 32.3 percent full-time. Work in Canada is undergoing significant structural change. Part-time employment (less than thirty hours per week) represented only four percent of the workforce in the 1950s.  It has been estimated that contingent workers have grown over the past twenty years to 30 percent of the labour force. It is predicted that the “nonstandard” job of today will become the standard job of the future.

 

Chapter_4_The_Legal_Environment   1. The new contract for the United Food and Commercial Workers Canada and Floralia Growers of Abbotsford provides rights of seasonal migrant workers to return to Canada.   a. True   b. False   ANSWER:   True

 

2. A major feature of Roosevelt’s New Deal was the Wagner Act.   a. True   b. False   ANSWER:   True

 

3. Under the court ruling of the Snider case the distinctive Canadian system of shared jurisdiction was declared illegal.   a. True   b. False   ANSWER:   False

 

4. Certification is the process of gaining recognition under the appropriate government.   a. True   b. False   ANSWER:   False

 

5. 5. A tripartite board has three stakeholders: employees, unions, and management.   a. True   b. False   ANSWER:   False

 

6. Labour boards frequently determine charges of bad faith bargaining by either labour or management.   a. True   b. False   ANSWER:   False

 

7. An unfair labour practice is an alleged violation of a Labour Relations Act.   a. True   b. False   ANSWER:   True

 

8. A union has the duty not to discriminate or act in an arbitrary manner.   a. True   b. False   ANSWER:   True

 

9. Employer structure is a criterion for determining an unfair labour practice.   a. True   b. False   ANSWER:   False

 

10. Conciliation is a process in which a neutral third party forces labour and management to settle their dispute.   a. True   b. False   ANSWER:   False

 

11. In some provinces, employers may force a last-offer vote during a strike.   a. True   b. False   ANSWER:   True

 

12. In Canada strikes are illegal during the term of the collective agreement.   a. True   b. False   ANSWER:   True

 

13. In their early decisions, the Supreme Court found that freedom of association included the right to strike.   a. True   b. False   ANSWER:   False

 

14. On January 30, 2015, the Supreme Court constitutionalized the right to strike in Canada.   a. True   b. False   ANSWER:   True

 

15. The Supreme Court of Canada has ruled that Walmart did not violate Quebec’s labour code when it closed a store in Jonquiere, Quebec after workers tried to unionize it.   a. True   b. False   ANSWER:   False

 

16. Globalization of trade and the increased mobility of capital have created pressure for new international labour market rules.   a. True   b. False   ANSWER:   True

 

17. With which union did The United Food and Commercial Workers Canada reach an agreement?   a. Unifor   b. Floralia Growers of Abbotsford   c. Agricultural Workers of Canada of Canada   d. Dairy Farmers Union   ANSWER:   b

 

18. What was the Wagner Act intended to do?   a. replace industrial unionism   b. protect the union right to organize and strike   c. protect employee  rights   d. establish international labour standards   ANSWER:   b

 

19. What phenomenon resulted from scientific management and mass production?   a. greater labour–management cooperation   b. rise of craft unionism   c. rise of industrial unionism   d. stricter labour legislation   ANSWER:   c

 

20. Which of the following was a result of the Wagner Act?   a. Great Depression worsened   b. scientific management went into decline   c. legitimizing industrial unionization without violence   d. union density stabilized   ANSWER:   c

 

21. Why was the Snider decision important?   a. It protected the employer right to manage.   b. It determined that labour relations fell under federal jurisdiction.   c. It determined that labour matters fell under provincial jurisdiction.   d. It provided for conciliation before a strike could take place.   ANSWER:   c

 

22. The Snider case resulted in a special system of law in Canada. What is this system called?   a. shared jurisdiction   b. scientific management   c. common law   d. dispute investigation   ANSWER:   a

 

23. Why was P.C. 1003 introduced in Canada nine years after the Wagner Act?   a. The Canadian parliamentary political system is slower than the American one.   b. World War II and employer resistance delayed its implementation.   c. A strong labour movement made change unnecessary.   d. It was met with union opposition.   ANSWER:   b