Answer the following statements true (T) or false (F)
1. The free rider problem is mainly an issue in union shops where employees often choose not to
pay union dues even though the union is required to represent them.
2. A union is required by law to fairly represent any worker in the bargaining unit, including those
that are not union members or those who pay only a partial fee.
3. The union's duty of fair representation stems from a clause in the collective bargaining
contract that requires the union to give each employee equal treatment.
4. Because unions have a duty of fair representation, they must treat every grievance or
complaint the same and purse each all the way to arbitration, if necessary.
5. If management wants to retain the right to make unilateral decisions about various aspects of
the workplace such as work assignments or the ability to introduce new technology, they are
required to state this in the contract.
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
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A Korean factory has offered to supply Fastec with ready-made units for a price of $14 per transfer case. Assume that Fastec's fixed costs are unavoidable, but that Fastec could use the vacated production facilities to earn an additional $9500 of profit per month. If Fastec decides to outsource, monthly operating income will ________.
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A) increase by $4700
B) decrease by $15,000
C) increase by $9500
D) decrease by $27,100
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The tax credit available through the Saver's Credit is equal to
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