Closed vs. Open Shops in Labor Relations & Impacts on Human Resource Management


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Abe is applying for a job at a plant. When asked if he's a member of the union by the HR he says he's not. The HR rep informs Abe that he cannot be hired because the company only hires union workers. What type of shop is the company?

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1. Anne applies for a job at a manufacturing plant, and sees a bunch of union information in the HR department. She asks if she has to join a union in order to get a job. The HR rep tells her she can join the union if she wants but does not have to do so. What type of shop is the company?

2. Casey goes into the town's factory to apply for a production job. She is told that if hired, she will have to join the union. What type of shop is the company?

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About This Quiz & Worksheet

This quiz and corresponding worksheet will help you gauge your understanding of what a closed shop and open shop mean in terms of labor relations. Topics you'll need to know to pass the quiz include understanding the defining characteristics of a closed shop as well as the characteristics of an open shop.

Quiz & Worksheet Goals

Use these assessment tools to assess your knowledge of:

  • Identifying whether a company is an open, union or closed shop based on a sample scenario
  • The act making closed shops illegal in the U.S.
  • The process that determines whether a company is open or union

Skills Practiced

This worksheet and quiz will let you practice the following skills:

  • Defining key concepts - ensure that you can accurately define main phrases, such as closed shop and union shop
  • Reading comprehension - ensure that you draw the most important information from the related lesson on closed versus open shops in labor relations
  • Interpreting information - verify that you can read information regarding why closed shops are illegal in the U.S. and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about types of shops

Additional Learning

To learn more about the characteristics of the types of shops in business, review the corresponding lesson on Closed versus Open Shops in Labor Relations. This lesson covers the following objectives:

  • Understand how unions affect hiring
  • Know the characteristics of a closed shop and why such shops are illegal in the U.S.
  • Review the characteristics of open shops and union shops
  • Define collective bargaining