An Airline Hired New Flight Attendants When Current Attendants Went

question 144

Multiple Choice

An airline hired new flight attendants when current attendants went on strike when the collective bargaining agreement ended. When the strike was over, the airline only called back a few of the attendants who had been on strike. The union claimed the striking attendants had to be rehired with seniority and the new flight attendants fired. About the replacement workers, you would expect the court held the union was:

• A) wrong; the airline had acted within its rights
• B) right only with respect to union members who worked during the strike⎯they had to be replaced with union members who had been on strike
• C) right only with respect to non-union workers hired during the strike⎯they had to be replaced with union members according to seniority
• D) right that both non-union workers hired and union members who had crossed the picket line had to be fired in favor of senior attendants who had been on strike
• E) none of the other choices

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Definitions:

External Equity

Financing obtained from sources outside a company, such as public stock offerings or venture capital investments.

Flotation Cost

Flotation cost is the total charges associated with creating and issuing new shares of stock, encompassing underwriting, legal, and registration fees.

Equity Capital

Funds raised by a company in exchange for shares of ownership, representing the value of shareholders' equity.

Retaining Earnings

Profits that a company has decided to keep or reinvest in itself rather than pay out as dividends to its shareholders.