In this paper, I will be analyzing the following situation:
Speedy Motors Company closed their Eastland, Michigan, assembly plant. Speedy Motors Company (SMC) gave less than a months notice before they laid off nearly 2,000 workers and closed the facility. This facility has been providing jobs for this community for over 20 years.
I will now show you how I would have handled the shutdown while answering the following questions:
1. Terms of the close - what notice would you give, what benefits would you provide, etc.
2. Describe all of the affected stakeholders and how their interests will be considered.
3. Who do you propose should take primary responsibility for those laid off as a result of the plant closing?
4. How will this news be communicated to the workers, press, and community?
1. Terms of the close - what notice would you give, what benefits would you provide, etc.
If I were in charge of closing the Eastland, Michigan, assembly plant, I would feel morally obligated to provide at least 60 days notice. "The Worker Adjustment and Retraining Notification Act is a federal law requiring employers to provide workers, their unions, and state and local government officials sixty days advance notice of any plant closing or mass layoff"(FindLaw, 2002). This law applies to any private sector employers with at least 100 employees and are either closing the plant or laying off at least 33% of the employees.
As far as the benefits that I would have provided to the employees, I would first attempt to find another job for the employees in one of the other plants (especially with Management level positions). This may involve a move on their part, but at least they would have the opportunity to keep their tenor with SMC. Depending on the contract signed by each employee, a severance may be in order.
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