Which of the following statements best describes the role of unions in wage determination?Question 4Answera.The role of unions in administering compensation is outlined primarily in the contract.b.When labour is scarce, the balance of power tilts toward the employers.C. It is the supply and demand for labour that determines wages and not the union.c.During periods of higher unemployment, the impact of unions is lesser.d.The union insists on individual merit-based performance measures when the organization faces external competition pressure.
Question
Which of the following statements best describes the role of unions in wage determination?Question 4Answera.The role of unions in administering compensation is outlined primarily in the contract.b.When labour is scarce, the balance of power tilts toward the employers.C. It is the supply and demand for labour that determines wages and not the union.c.During periods of higher unemployment, the impact of unions is lesser.d.The union insists on individual merit-based performance measures when the organization faces external competition pressure.
Solution
The statement that best describes the role of unions in wage determination is "The role of unions in administering compensation is outlined primarily in the contract." This is because unions often negotiate contracts on behalf of their members, which include details about wages, working conditions, and other aspects of employment. These contracts are legally binding and employers are required to adhere to them. Therefore, unions play a significant role in determining wages.
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