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A survey of firms in your local labor market reveals that the average hourly wage rate of...

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A survey of firms in your local labor market reveals that the average hourly wage rate of unionized production workers is $1.50 higher than the average wage rate of nonunion production workers. Does this indicate that unionization increases the wage rates of workers in your area by $1.50? Why or why not?

Unionization:

Unionization refers to the grouping of workers together to form a trade union. The labor unions play an essential role in giving workers some power to negotiate their wages and other benefits through collective bargaining power.

Answer and Explanation: 1

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Suppose a survey in your local area reveals that the average hourly wage of unionized workers is $1.50 higher than the of nonunionized workers. This...

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Bargaining Issues: Wages & Wage Incentives

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Chapter 7 / Lesson 5
973

Wage and wage incentive programs are integral parts of union contracts. Discover incentive programs such as profit sharing and gain sharing, as well as wage programs such as the two-tier pay plan and wage adjustments.


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