Final answer:
The statement concerning high legacy costs as a description of the financial impact of pension and health care benefits gained under union contracts by employers is true. Legacy costs refer to obligations incurred for past employee benefits and have become a major financial issue for businesses.
Step-by-step explanation:
The assertion that significant employee pension and health care benefit gains under union contracts are now referred to as "high legacy costs" by unionized employers is true. Legacy costs are financial obligations a company incurs for past employee benefits, including pensions and health care. Over time, as employee benefits have increased, these obligations can become substantial and are a significant concern for businesses. This phenomenon, coupled with the irony that strong union support for protective labor laws has reduced the perceived necessity for unions themselves, reflects the complex relationship between labor unions, legislative action, and the modern workplace.
Employers offering pension insurance must pay into the Pension Benefit Guarantee Corporation, which provides protection for workers' pensions in case a company cannot fulfill its obligations. However, the accumulation of benefits promised under union contracts can lead to high legacy costs that impact a company's financial health and competitiveness.