Final answer:
Unions typically prefer traditional pension plans and not ESOPs, which makes the given statement false. Pension plans are more secure for employees than ESOPs, which are tied to company performance.
Step-by-step explanation:
Unions generally favor an employee stock ownership plan (ESOP) as a basic pension plan for employees. This statement is considered false because unions typically support traditional pension plans, which are defined benefit plans that guarantee a specific payout upon retirement. ESOPs, on the other hand, are employee-owner programs where workers have shares in the company and their retirement benefit is tied to the company's performance, which does not provide the same level of security as a defined benefit pension plan. Moreover, pension plans are increasingly being replaced by defined contribution plans such as 401(k)s and 403(b)s. These plans are based on the employer's and employee's contributions and the investment’s performance, providing a different structure and risk profile compared to traditional pensions or ESOPs.