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In 2005, the members of a 9-to-5 union had an average seniority level of 20 years. During 2006, many

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In 2005, the members of a 9-to-5 union had an average seniority level of 20 years. During 2006, many

In 2005, the members of a 9-to-5 union had an average seniority level of 20 years. During 2006, many of the union members retired, and the average seniority level declined to 7 years. Which of the following changes may take place in the next contract?
A) The union negotiates a contract that guarantees that its wage rate relative to workers in other industries will remain constant regardless of potential employment losses. (Assume that junior workers are the first to be laid off.)
B) The union negotiates a contract that calls for fixed employment levels rather than a fixed wage rate. (Assume that junior workers are the first to be laid off.)
C) The union negotiates a contract that guarantees that its wage rate will remain constant regardless of the potential employment losses. (Assume that junior workers are the first to be laid off.)
D) The union negotiates a contract that calls for layoffs to be implemented so that the last hired is the first fired.

Textbook

Principles of Macroeconomics

Edition: 11^th

Authors: Case, Fair, Oster

Read 114 times

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8 years ago

Good answer, thanks.

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