1. Fully describe a specific and common CBA economic Retiree Legacy Costs. (4 Points)

2. 1. If you were the union's chief negotiator, how would you present (persuade/sell) a two-tier hourly wage/pay system to union members at a ratification meeting of a newly negotiated CBA? Your goal is to have the union membership vote positively for the two-tier contract proposal.

3. 1. Fully describe the economic conceptof collective bargaining known as roll-up costs. (6 Points)

2. Fully explain how a general wage increase of $1.00/hour/employee is rolled-up by employer paid Social Security Tax if the employer pays 6.2% (actual amount) of payroll for Social Security Tax. Include in your answer the actual per hourly per employee Social Security roll-up cost (in cents per hour) for only one employee after a $1.00/hour general wage increase. You must show your calculations or no credit. (6 Points)

Answer: (You must show your calculations or no credit given):