If union contracts raise wages above competitive levels, what might be one negative outcome?

Industries will raise salaries for top-level workers but not entry-level workers.

Companies will move overseas to escape unions and hire cheaper labor.

Inexperienced workers will lose their jobs to more experienced workers.

Employees will be content with their status and thus less likely to join unions.

Question

Deshawn Golden

Social Studies

10 October, 14:09

If union contracts raise wages above competitive levels, what might be one negative outcome?

Industries will raise salaries for top-level workers but not entry-level workers.

Companies will move overseas to escape unions and hire cheaper labor.

Inexperienced workers will lose their jobs to more experienced workers.

Employees will be content with their status and thus less likely to join unions.

+4

Answers (2)

Know the Answer?

Alessandra Wu · Answer 1

What negative consequence occurs if the union reduces the raise wages that are above competitive levels is that, companies will transfer overseas in order to get away from unions and there they would hire a cheaper labor. The answer for this would be the second option.

Abril · Answer 2

The answer is B! I just took the test!