Question

Broxton, a production manager at Silkenz Inc., is against the idea of forming a union. He believes that unionization may negatively affect the company's profit margins. On the other hand, Eliza, the CEO of the company, believes that unionization may have a positive impact on the company's performance in the market. Which of them is right?

A. Broxton is right because union workers tend to exhibit lower levels of productivity than nonunion workers.

B. Eliza is right because unions are designed to cater to the interests of management rather than to those of employees.

C. Eliza is right because unionization tends to reduce the overall costs of labor and operations.

D. Broxton is right because forming an employee union will reduce the risk of work stoppages.

E. Broxton is right because unionization will create higher costs in wages and benefits.

Answer

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