During the Recent Recession, Many Companies Have Instituted Wage Freezes

question 112

True/False

During the recent recession, many companies have instituted wage freezes, dropped health care coverage, and increased hours of work to maintain profitability. According to the industrial relations school, the competitive forces of the economy, and employees' rights to quit and find another job, provide a sufficient "check and balance" system to ensure that other employers do not take advantage of the poor economy simply as a way to decrease the share of profits that are paid to labor.