Labor Relations Law Midterm # 2 Ch7

Front 1

Degree of Labor Intensiveness

Back 1

A Measure of the proportion of total operating costs comprised of labor costs, must also be considered in determining employee wage rates

Front 2

Job Evaluation

Back 2

used to maintain rational and fair wage relationships among various jobs

Front 3

Job Analysis

Back 3

A process of systematically securing information and facts about the jobs to be evaluated

Front 4

Profit-Sharing Plans

Back 4

Incentive plan to provide direct or indirect payments to employees that depend on company's profitability in addition to regular salary and bonuses

Front 5

Gain-Sharing Plans

Back 5

Incentive plan where companies make monetary payments to a specific group or groups of employees for producing more output or generating cost savings beyond some established goal

Front 6

Scanlon Plan

Back 6

Incentive plan that provides bonus payments based on a computed ratio of total labor costs (TLC) to total production values (TPV), which typically equal monthly sales, plus or minus inventory adjustments.

Front 7

Ruker Plan

Back 7

Incentive plan based on a change in the ratio between labor costs and dollar value added. The value added equals sales less purchased materials.

Front 8

Improshare Plan

Back 8

Incentive plan where a monetary reward is granted whenever the number of labor hours required to produce the output during a measured period (week, month, etc) is less than the number of hours required during the base period.

Front 9

Skill Based Pay

Back 9

Compensation plan that bases pay on the skills or knowledge an employee possesses that are valued by the employer.

Front 10

Wage Spread

Back 10

Represents the distribution of the proposed or negotiated wage increase to the bargaining unit employees

Front 11

Skill Pay Differential

Back 11

A special cents-per-hour increase only applicable to certain high-rated jobs. Used to maintain a desired wage spread between higher and lower skilled employees

Front 12

Two-Tier Pay Plan

Back 12

Compensation plan that specifies a newly hired employee will be paid less than other employees performing a similar job

Front 13

Wage Comparability

Back 13

Comparing of wage rates in one bargaining unit to wage rates in a comparable unit

Front 14

Ability to Pay

Back 14

The financial condition of the organization can be used as a standard for wage determination.

Front 15

Labor Productivity

Back 15

A measure of the value of output created relative to the hourly costs of the labor necessary to produce that output

Front 16

Consumer Price Index (CPI)

Back 16

Measures changes in the price of goods and services purchased by a typical American household on a monthly basis

Front 17

Cost-of-living-adjustment (COLA)

Back 17

A contractual obligation on an employer to change rates of pay in accordance with a collectively bargained formula

Front 18

Deferred Wage Increase

Back 18

Wage increases negotiated in multi-year contract provide some adjustment in base wage rates beyond the first contract year

Front 19

Wage re-opener

Back 19

Clause written to permit wages to be renegotiated at a specified point in time during the contract or whenever some predetermined event occurs (e.g. profits exceed a certain level)

Front 20

Back-Loaded

Back 20

Deferred wage increases in multi-year contracts where larger increases occur later in the contract

Front 21

Front-Loaded

Back 21

Deferred wage increases in multi-year contracts where smaller increases occur later in the contract

Front 22

Even-Loaded

Back 22

Deferred wage increases in multi-year contracts where wage increases are equal in all years

Front 23

Lump-Sum Pay

Back 23

Pay adjustments that do not change the employee's base hourly wag rate, thus having no impact on roll-up costs

Front 24

Preferred Provider Organization (PPO)

Back 24

Health care plan that permits an employee to pay a lower rate for health care services if the employee agrees to use health care providers approved by the plan

Front 25

Health Maintenance Organization (HMO)

Back 25

Health care plan that restricts an employee's choice of health care provider to a specific organization

Front 26

Consumer-directed Health Care Plan

Back 26

Health care plan that involves a high deductible insurance policy combined with a health savings account into which an employee may place pre-tax dollars to spend for later health care needs until the high deductible has been paid and the insurance policy begins to pay for health care needs

Front 27

Severance Pay

Back 27

Provides a lump-sum payment on termination. Only extended to an employee whose job has been terminated as a result of permanent shutdown, is subject to a lengthy layoff, or who has no reasonable prospect for recall

Front 28

Supplemental Unemployment Benefit Plan

Back 28

Provides pay in addition to unemployment compensation to which the individual would be entitled.

Front 29

Work Sharing

Back 29

Qualified employees agree to share the available work opportunities by having each employee work a reduced number of hours

Front 30

Premium Pay

Back 30

Pay for hours worked beyond regularly scheduled hours

Front 31

Shift Differentials

Back 31

Premium payments for working a night or weekend shift

Front 32

Reporting Pay

Back 32

Guarantees some minimum number of hours' pay for employees who report for scheduled work but find no work

Front 33

Call-in Pay

Back 33

Guarantees four hours' pay for employees called in to work during nonscheduled work hours

Front 34

Defined Benefit Pension Plan

Back 34

Guarantees a specified dollar benefit payment per month to a covered employee on retirement and is typically funded by the employer

Front 35

Defined Contribution Pension Plan

Back 35

When an employer contributes each year a percentage of an employee's salary into a 401(k)-type individual account and leaves it up to the employee the responsibility of investing these assets prudently. If an employee's investments do not turn out well, or if the employee retires during a period of declining stock values, or if the employee outlives the value of his assets, then the employee is stuck without a core retirement income, and risks becoming a member of the elderly poor

Front 36

Employee Stock Ownership Plan (ESOP)

Back 36

Investing employee's pension savings in the company

Front 37

Cash Balance Plan

Back 37

Retirement savings approach that combines features of both defined benefit and defined contribution plans. Employer typically agrees to make a specified contribution to an employee's retirement account, which is guaranteed to earn a specified rate of interest

Front 38

Pension Protection Act of 2006

Back 38

Eliminated most legal concerns surrounding the implementation of cash balance plans

Front 39

Employee Retirement Income Security Act of 1974 (ERISA)

Back 39

Establishes minimum standards for pension plans in private industry and provides for extensive rules on the federal income tax effects of transactions associated with employee benefit plans

Front 40

Cliff Vesting Schedule

Back 40

A qualified retirement plan must, at a minimum, permit a participant to earn a non-forfeitable right to 100 percent vested after seven years of service

Front 41

Graded Vesting Schedule

Back 41

A plan participant would be 20 percent vested after three years of service, 40 percent vested after four years, 60 percent vested after five years, 80 percent vested after six years and 100 percent vested after seven years of service

Front 42

Family and Medical Leave Act of 1993 (FMLA)

Back 42

Requires private-sector employers of 50 or more employees to provide eligible employees up to 12 weeks of unpaid leave for their own serious illness; the birth or adoption of a child; or care of a seriously ill child; spouse or parent.

Front 43

Prepaid Legal Service Plans

Back 43

Inexpensive means of providing legal assistance to employees without imposing substantial administrative burdens on an employer

Front 44

Employee Assistance Plan (EAP)

Back 44

Provides counseling services to employees, covering a wide range of problems

Front 45

Education Tuition Aid

Back 45

Helps to cover expenses incurred by an employee who seeks additional education and training related to the employee's career.

Front 46

Transportation Subsidy

Back 46

Used to offset travel expenses to and from work