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What does a management rights clause in a labor agreement do?
AGives the union a veto over every promotion decision
BGives the employer all rights to manage except as specified
CGives an arbitrator the power to set production standards
DGives the workers the right to elect the plant manager
Answer & Solution
Correct answer: B. Gives the employer all rights to manage except as specified
1. When a company becomes unionized, management loses some of its decision-making freedom.
2. A management rights clause is written into most union contracts to limit that loss.
3. A typical clause gives the employer all rights to manage the business except where the contract says otherwise.
4. The clause therefore protects management authority rather than transferring it, which is the opposite of options A and D.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 8 "Managing Human Resources and Labor Relations", section Management Rights_
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