The Give Back: A Case of Union Busting - Essay Example

The Give Back: A Case of Union Busting Insert due The Give Back: A Case of Union Busting What are the pros and cons of North American Tires strategy of hiring replacement workers? ProsBy hiring replacement workers, the firm managed to keep running despite the absence of its convectional workers (Nkomo, Fottler, & McAfee, 2011, p. 99). The company was able to survive economically amidst a turbulent season (Nkomo, Fottler, & McAfee, 2011, p. 99).ConsThe running of the firm would profoundly face inefficiency.

This follows the impacts of the shift from its running by the experienced workers, who had already adapted to the firms operations, to ‘unexperienced’ workers (Christofides, Oswald, & National Bureau of Economic Research, 1989, para. 6). My argument is the hired worker could have been ‘inexperienced’ since, even if they had well equipped with the knowledge in the required field for running the company’s operations, they were not familiar with this unique facility. How ethical is the behavior of management?

With reference to the principalism theory of ethics, the behavior of management exhibited above is considerably ethical. The rational supporting it is the appropriate choice made considering the struggling economic situation prevailing in the context since the previous depression (Nkomo, Fottler, & McAfee, 2011, p. 99).2. Assuming that the firm’s goal is to break Local 974 of United Tire workers of America, what are the advantages and disadvantages of this strategy? Advantages The firm would manage to continue with production with the convectional compensation terms to their employees.

The firm will also have managed to conquer the collective bargaining power of the employees. Disadvantages The employees would most probably be back to work with an indifferent attitude. This is after the strike is called off without an improvement to their compensation terms after a long time and determined struggle. 3. What standard should the firm use in setting wage rates (industry or geographic)?I am more inclined to the employment of the industry-differentiated wages over the geographically-differentiated wages; regarding the issue of the standards the firm use in setting the wage rates.

This is because as much as the geographically-differentiated wages will cater for the employees’ adjustments to the cost of living of the location, industry-differentiated wages will do way more than that (Christofides, Oswald, & National Bureau of Economic Research, 1989, para. 4). Industry-differentiated wages will also ensure that the firm maintains its competitive advantage of experienced and motivated workers while competing with the external labor market (Christofides, Oswald, & National Bureau of Economic Research, 1989, para. 6). ReferencesChristofides, L. N., Oswald, A. J., & National Bureau of Economic Research. (1989). Real Wage Determination in Collective Bargaining Agreements.

Working paper series (National Bureau of Economic Research). Nkomo, S. M., Fottler, M. D., & McAfee, R. B. (2011). Human resource management applications (7th ed.). Mason, OH: South-Western Cengage Learning.