In labor-management relationships,what are implicit contracts?
A) contracts imposed by outside arbitration panels
B) informal unwritten understandings between labor and management
C) agreements between management and union leaders that are kept secret from the rank and file members
D) contracts that do not specify a wage rate but ensure that workers get the current going rate
E) documents that spell out in detail the intent and meaning of the provisions in the formal contract

Question

Quizplus · Accepted Answer

Implicit contracts are informal unwritten understandings between labor and management. These contracts typically arise as a result of ongoing interactions between these two groups and the establishment of mutual trust, respect, and understanding over time. They may include agreements about wages, benefits, working conditions, and other aspects of the employment relationship, and are often based on the assumption that both parties will abide by the terms of the agreement in good faith. Implicit contracts can be important in labor-management relationships because they can help to create a sense of stability and predictability in the workplace, which can benefit both workers and employers.

In Labor-Management Relationships,what Are Implicit Contracts