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What does job security mean in a labor agreement, and what does it rest on above all?
AA fixed wage for life, resting on the union treasury
BA right to any vacancy, resting on the plant manager
CAssurance of keeping a job, resting on company health
DA pension after ten years, resting on a state fund
Answer & Solution
Correct answer: C. Assurance of keeping a job, resting on company health
1. Wage adjustments, cost-of-living increases, and supplementary pay give union members a measure of financial security.
2. Most financial security, though, comes from job security rather than from any of those clauses.
3. Job security is the assurance, to some degree, that workers will keep their jobs.
4. The word assurance matters, because it is a degree of protection rather than a guarantee.
5. What it rests on above all is the continued success and financial well-being of the company.
6. That is why no contract can protect jobs at a firm that fails, which is the flaw in the absolute promises made by options A and B.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 8 "Managing Human Resources and Labor Relations", section Job Security and Seniority_
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