Final answer:
Pete's behavior is an example of free riding.
Step-by-step explanation:
Pete's behavior is an example of free riding. Free riding refers to the act of benefiting from a collective action or public good without contributing to the cost or effort of producing that good. In this case, Pete is receiving all the benefits that the union has negotiated without having to pay union dues or actively participate in the union. This is possible because union benefits are often extended to all employees, regardless of their membership status.