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PHR · Question #16

Heather's organization works with a labor union work force. Heather has heard rumors that the union has been trying to create a hot cargo agreement with a supplier. What is a hot cargo agreement?

The correct answer is A. It's an agreement that an employer will stop doing business with a non-union business.. A hot cargo agreement is a contract in which an employer agrees not to handle or conduct business with goods or services from a non-union or struck employer, and such agreements are generally prohibited under the Taft-Hartley Act.

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Question

Heather's organization works with a labor union work force. Heather has heard rumors that the union has been trying to create a hot cargo agreement with a supplier. What is a hot cargo agreement?

Options

  • AIt's an agreement that an employer will stop doing business with a non-union business.
  • BIt's a threat that the union will slow down processing orders for non-union shops.
  • CIt's an agreement to rush orders for union-based businesses.
  • DIt forces suppliers to join the union.

How the community answered

(26 responses)
  • A
    77% (20)
  • B
    4% (1)
  • C
    12% (3)
  • D
    8% (2)

Why each option

A hot cargo agreement is a contract in which an employer agrees not to handle or conduct business with goods or services from a non-union or struck employer, and such agreements are generally prohibited under the Taft-Hartley Act.

AIt's an agreement that an employer will stop doing business with a non-union business.Correct

A hot cargo agreement occurs when an employer, at the union's request, agrees to cease or refrain from doing business with another employer - typically a non-union shop. Section 8(e) of the National Labor Relations Act, as amended by the Taft-Hartley Act, makes it an unfair labor practice for a union and employer to enter into such an agreement. The purpose is to prevent unions from using secondary pressure to force neutrals to stop doing business with targeted companies.

BIt's a threat that the union will slow down processing orders for non-union shops.

Slowing down order processing describes a work slowdown or 'work-to-rule' tactic, not a hot cargo agreement, which is a formal contractual commitment.

CIt's an agreement to rush orders for union-based businesses.

Rushing orders for union businesses is not related to the concept of hot cargo, which concerns refusal to handle non-union goods, not preferential treatment of union goods.

DIt forces suppliers to join the union.

Forcing suppliers to join a union describes a union security arrangement or card-check campaign, not a hot cargo agreement, which targets business relationships rather than union membership.

Concept tested: Hot cargo agreements under NLRA Section 8(e)

Source: https://www.nlrb.gov/about-nlrb/rights-we-protect/the-law/employees/secondary-boycotts

Topics

#hot cargo agreement#labor union#secondary boycott#union-management relations

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