According to many analysts, labor-management relations in the United States are undergoing a fundamental change: traditional adversarialism is giving way to a new cooperative relationship between the two sides and even to concessions from labor. These analysts say the twin shocks of nonunion competition in this country and low-cost, high-quality imports from abroad are forcing unions to look more favorably at a variety of management demands: the need for wage restraint and reduced benefits as well as the abolition of “rigid” work rules, seniority rights, and job classifications. Sophisticated proponents of these new developments cast their observations in a prolabor light. In return for their concessions, they point out, some unions have bargained for profit sharing, retraining rights, and job¬-security guarantees. Unions can also trade concessions for more say on the shop floor, where techniques such as quality circles and quality-of-work-life programs promise workers greater control over their own jobs. Unions may even win a voice in investment and pricing strategy, plant location, and other major corporate policy decisions previously reserved to management. Opponents of these concessions from labor argue that such concessions do not save jobs, but either prolong the agony of dying plants or finance the plant relocations that employers had intended anyway. Companies make investment decisions to fit their strategic plans and their profit objectives, opponents point out, and labor costs are usually just a small factor in the equation. Moreover, unrestrained by either loyalty to their work force or political or legislative constraints on their mobility, the companies eventually cut and run, concessions or no concessions. Wage-related concessions have come under particular attack, since opponents believe that high union wages underlay much of the success of United States industry in this century. They point out that a long-standing principle, shared by both management and labor, has been that workers should earn wages that give them the income they need to buy what they make. Moreover, high wages have given workers the buying power to propel the economy forward. If proposals for pay cuts, two-tier wage systems, and subminimum wages for young workers continue to gain credence, opponents believe the U.S. social structure will move toward that of a less-developed nation: a small group of wealthy investors, a sizable but still minority bloc of elite professionals and highly skilled employees, and a huge mass of marginal workers and unskilled laborers. Further, they argue that if unions willingly engage in concession bargaining on the false grounds that labor costs are the source of a company's problems, unions will find themselves competing with Third World pay levels—a competition they cannot win. 1 RC32661-01.01 1. It can be inferred from the passage that opponents of labor concessions would most likely describe many plant-relocation decisions made by United States companies as A. capricious B. self-serving C. naive D. impulsive E. illogical 2 RC32661-02.01 2. It can be inferred from the passage that, until recently, which of the following has been true of United States industry in the twentieth century? A. Unions have consistently participated in major corporate policy decisions. B. Maintaining adequate quality control in manufacturing processes has been a principal problem. C. Union workers have been paid relatively high wages. D. Two-tier wage systems have been the norm. E. Goods produced have been priced beyond the means of most workers. 3 RC32661-03.01 3. The passage provides information to answer which of the following questions? A. What has caused unions to consider wage restraints and reduced benefits? B. Why do analysts study United States labor-management relations? C. How do job-security guarantees operate? D. Are investment and pricing strategies effective in combating imports? E. Do quality circles improve product performance and value? 4 RC32661-04.01 4. The passage is primarily concerned with the A. reasons for adversarialism between labor and management B. importance of cooperative labor-management relations C. consequences of labor concessions to management D. effects of foreign competition on the United States economy E. effects of nonunion competition on union bargaining strategies 5 RC32661-05.01 5. The sentence “If proposals for pay cuts ... unskilled laborers” serves primarily to A. disprove a theory B. clarify an ambiguity C. reconcile opposing views D. present a hypothesis E. contradict accepted data 6 RC32661-06.01 6. It can be inferred from the passage that opponents of labor concessions believe that if concession bargaining continues, then A. plants will close instead of relocating B. young workers will need continued job retraining C. professional workers will outnumber marginal workers D. wealthy investors will invest in Third World countries instead of the United States E. the social structure of the United States will be negatively affected 7 RC32661-07.01 7. According to the author, “Sophisticated proponents” of concessions do which of the following? A. Support the traditional adversarialism characteristic of labor-management relations. B. Emphasize the benefits unions can gain by granting concessions. C. Focus on thorough analyses of current economic conditions. D. Present management's reasons for demanding concessions. E. Explain domestic economic developments in terms of worldwide trends.

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According to many analysts, labor-management relations in the United

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27 Nov 2022, 18:06

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GMATNinja AndrewN

In Q-4. I am confused between option C and option E. Kindly help

4. The passage is primarily concerned with the

A. reasons for adversarialism between labor and management

B. importance of cooperative labor-management relations

C. consequences of labor concessions to management

D. effects of foreign competition on the United States economy

E. effects of nonunion competition on union bargaining strategies

my mapping of passage is as follows:

A: Non union Competition
B: Imports
C: labor concession to management

P1: A&B leads to C
P2: Proponents of C
P3 & P4: Critics of C

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For question 6, why is D not the correct answer?

The last line of the passage clearly says that if the concession bargaining continues, then they will have to compete with third world wages- a competition they cannot win. This means that wealthy investors will start invest in third world countries instead of the states

Is there any flaw in my reasoning? Or is E just a better choice? If yes, why?

The final sentence refers to a "race to the bottom" in which, if certain concessions are made, unions might have to continue lowering pay expectations to avoid losing jobs to Third World workers who are willing to do those jobs for lower wages.

If a company decides to use offshore labor because it's cheaper than domestic labor, that doesn't qualify as INVESTING in the foreign nation. The company is simply paying wages to workers in the foreign nation.

Also, the passage doesn't tell us where the "small group of wealthy investors" would invest their money. Maybe they would invest ONLY in U.S. companies, and then it's those companies who decide to pay workers from Third World countries. In that case, the investors themselves wouldn't be investing in Third World countries.

(D) might be true, but it might not be. So (E) is a better choice.

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