Differentiate between a union shop agreement, an agency shop agreement and a closed shop agreement.
What will be an ideal response?
Under a union shop agreement, an employer may hire anyone whether he or she belongs to a union or not. However, an employee must join the union within a certain time period (e.g., 30 days) after being hired. Union shops are lawful.
Under an agency shop agreement, an employer may hire anyone whether he or she belongs to a union or not. After employees are hired, they do not have to join the union, but if they do not join, they must pay an agency fee to the union. This fee includes an amount to help pay for the costs of collective bargaining. A nonunion employee cannot be assessed fees for noncollective bargaining union activities, such as political campaigning and the like. The agency fee prevents the free rider problem that would occur if an employee did not have to pay union dues or their equivalent, but was the recipient of union collective bargaining activities. Agency shops are lawful.
Under a closed shop agreement, an employer agrees to hire only employees who are already members. The employer cannot hire employees who are not members of a union. A closed shop agreement is illegal in the United States.
You might also like to view...
The statement of owner's equity summarizes all changes in the owner's equity during the period
a. True b. False Indicate whether the statement is true or false
Successfully managed a marketing department that achieved its sales goals all four quarters of the past fiscal year uses an action verb
Indicate whether the statement is true or false
Which of the following statements is (are) true regarding the net present value of a capital investment? I. Net present value does not consider time value of money. II. A positive net present value represents an increase in value to the firm
A) I only B) II only C) both I and II D) neither I nor II
The centerpiece of the ________ efforts is the Anti-Bribery Convention that was the first global instrument to combat corruption in cross-border business deals.
A. Organization for Economic Co-operation and Development's B. Institute of Global Ethics' C. Ethics and Compliance Officer Association's D. United Nations'