The CEO of BoardCom, Inc., James, negotiates a new union contract with the union leader. If James wants to reduce expenses and keep the union happy, which of the following suggestions is most likely to be helpful?
A. Introduce merit increases based on individual-based performance.
B. Provide lump-sum awards in exchange for merit pay increases.
C. Provide a 20 percent increase to base wages.
D. Introduce a gain-sharing plan that substitutes wages.
Answer: B
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