In Labor Contracts, the Highest-Paid Employees Are Laid Off First

question 24

True/False

In labor contracts, the highest-paid employees are laid off first, with further layoffs made in accordance with performance levels as necessary.

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Definitions:

EBITDA Coverage Ratio

A financial metric that assesses a company's ability to pay off its debts, calculated by dividing EBITDA by total debt service costs.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.

Interest Charges

Costs incurred by borrowers for the use of borrowed money, typically expressed as an annual percentage rate.

Long-Term Debt

A financial obligation that is due for repayment in more than one year's time.