Society For Human Resource Management (SHRM) Certified Professional Practice Exam

What is one reason a company might engage in a union-busting strategy?

1. A. To improve employee morale

2. B. To gain competitive advantage

3. C. To reduce workplace conflicts

4. D. To enhance profitability

The correct answer is: B. To gain competitive advantage

When a company engages in a union-busting strategy, one primary reason is to gain a competitive advantage. By attempting to weaken or eliminate unions, companies aim to maintain greater control over labor costs and operational flexibility. Unions often negotiate for higher wages, better benefits, and more robust workplace protections, which can increase the overall expense for the company. By pursuing a union-busting strategy, a company may seek to prevent unionization efforts, allowing it to retain a workforce that it believes is more easily managed and possibly more productive without the constraints typically imposed by union contracts. This approach can lead to significant financial benefits and operational efficiency, positioning the company more favorably against competitors who might face higher labor costs or more rigid regulations stemming from union agreements. In contrast, other factors like improving employee morale, reducing workplace conflicts, or enhancing profitability are often perceived as more indirect or secondary outcomes of such strategies, rather than the primary motivator behind engaging in union-busting activities.