Reference no: EM133053002

Crunch the Numbers

The management of nonunion companies strives to maintain nonunion status to keep employment costs low and to maintain tighter control over the terms of employment. It is against the law for companies to interfere with workers' attempts to unionize; however, companies that want to remain nonunion can adjust employment terms proactively to minimize workers' interest in unionizing. As we discussed in this chapter text, companies may choose to offer higher compensation than they would otherwise in the absence of a union threat.

Wages & Benefit Costs
	Total Compensation Wages, salaries  benefits		Wages & Salaries		Total Benefits	Paid Leave		Supplemental pay	Insurance		Retirement & Savings		Legally Required Benefits
Cost Per Hour Worked
Union	50.21	28.94		21.27		2.60	1.87			7.06		5.48	4.26
NonUnion	38.04	26.09		11.95		2.58	1.42			3.08		1.71	3.16

p. 53 table 

Show your math

2-11. As a percent of total compensation costs for union settings, how much do these companies spend to provide 

1. wages and salaries 
2. total benefits 

As a percent of total compensation costs in nonunion settings, how much do these companies spend to provide

(c) wages and salaries and 

(d) total benefits? 

2-12. By what percent are compensation costs in union settings higher than in nonunion settings for 

(a) wages and salaries and for 

(b) total benefits

 If nonunion companies want to reduce the gap by 10 percent, how much will they pay to provide 

(c) paid leave, 

(d) supplemental pay, 

(e) insurance, and 

(f) retirement and savings benefits? 

2-13. If costs were to increase by 5 percent in union settings, what would the new costs be for 

(a) wages and salaries and 

(b) total benefits? 

If the nonunion companies want to reduce the gap by 10 percent (as in question 2-12), how much would nonunion companies spend on 

(c) wages and salaries and 

(d) total benefits