Local 304 and Kar Manufacturing Inc Have Just Implemented a New

question 42

Multiple Choice

Local 304 and Kar Manufacturing Inc have just implemented a new collective agreement, but there is already trouble. Local 304 allowed a specific provision addressing retroactivity of wage increases to be dropped because there were other more pressing issues to discuss. The agreement is silent on retroactivity and now Kar management does not intend to institute the agreed upon wage increase retroactively. Which of the following is the correct principle to be used by the arbitrator in resolving the union's grievance?

• A) There is a general presumption of retroactivity regarding wage increases in collective agreements.
• B) Retroactivity is one of the matters that must be addressed specifically in collective agreements in order to be applied.
• C) Some terms may be implied in collective agreements but retroactivity of wages is not one of them.
• D) Only those terms that are addressed explicitly in collective agreements will be applied.
• E) none of the above

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Definitions:

Cash

A form of liquid asset that includes currency, coins, bank deposits, and other mediums of exchange that can be used immediately for transactions.

Trial Balance Totals

The aggregate amounts of all debits and credits in a company's trial balance, which should match to indicate that the accounting entries are balanced.

Journal Entry

A record in the accounting journal that details all the financial transactions of a business and their impact on its accounts.

Debit Portion

Part of a financial transaction that represents an increase in assets or expenses or a decrease in liabilities or equity, according to double-entry accounting principles.