Question

The pallet incentive program is to reward TMs for maintaining peak performance. Upenders receive $0.02 per stack of pallets put into the system, while loop TMs receive $0.05 for every stack they build on the loop. On average, a pallet stack consists of 10 pallets.

A)True
B)False

Answer 1

The reference discusses the firm's response to union demands by increasing wages and investing in machinery, which makes workers more productive but may reduce the number of employees needed.

Step-by-step explanation:

The student's question refers to a pallet incentive program that appears to relate to how workers (Team Members or TMs) are compensated for their labor in an industrial or warehouse setting, possibly within a unionized environment. The specifics of the incentive program mentioned in the question are not present in the provided reference information. However, it can be observed that the firm in discussion has increased wages to $24 an hour and is adjusting its operational strategy by investing in machinery to reduce the number of labor hours required and potentially hire fewer workers.

The reference information provided indicates that when management responds to union demands for higher wages, they may do so by investing in more or better physical capital equipment such as machinery. This can result in union workers being more productive. However, this shift towards more capital-intensive production methods can lead to the need for fewer workers, as the firm will be paying more per hour of human labor.

This is a common economic trade-off where a firm must decide between more labor-intensive operations or more capital-intensive ones, which can be influenced by changes in wage rates.