Question

An organization with unionized and non-unionized workers negotiates a union contract that includes early retirement benefits and a 10% reduction in starting wages for new employees. Which should the organization likely expect as a result?

Contract terms apply to non-unionized workers.
Worker output will likely increase.
Worker output will likely decrease.
Non-unionized workers will expect similar terms.

Answer 1

The organization can expect the contract terms to only apply to unionized workers. The impact on worker output is uncertain. Non-unionized workers will not expect similar terms as those negotiated in the union contract.

Step-by-step explanation:

The organization can likely expect that the contract terms will only apply to unionized workers. This is because the contract is negotiated specifically for union workers, and non-unionized workers are not covered by the union contract. Therefore, non-unionized workers will not be subject to the early retirement benefits and wage reduction for new employees.

As for the impact on worker output, it is difficult to determine whether it will increase or decrease solely based on the contract terms. Other factors such as motivation, job satisfaction, and work environment can also influence worker output. It is important to consider these factors when assessing the overall effect of the contract on worker output.

Lastly, it is unlikely that non-unionized workers will expect similar terms as those negotiated in the union contract. Since they are not part of the union, they are not entitled to the same benefits and conditions negotiated for unionized workers.