The management of nonunion companies strives to maintain nonunion status to keep employment costs low and to maintain tighter control over the terms of employment. It is against the law for companies to interfere with workers attempts to unionize; however, companies that want to remain nonunion can adjust employment terms proactively to minimize workers interest in unionizing. As we discussed in this chapter text, companies may choose to offer higher compensation than they would otherwise in the absence of a union threat. The following table shows hourly compensation costs for union and nonunion settings.

2-13. If costs were to increase by 5 percent in union settings, what would the new costs be for (a) wages and salaries and (b) total benefits? To maintain the 10 percent reduction (question 2-12), how much would nonunion companies spend on (c) wages and salaries and (d) total benefits?

Cost per hour worked