The essay "Effect of the Economic Downturn on a Manufacturing Company" talks about the economic problems in a manufacturing company and analyzes the actions of the management's team. The union, the main company's problem which strongly opposed the layoff of any employee, happened to guarantee their members job security, which was the main reason that nearly all the workers had joined up. A number of alternatives were suggested by managers during a brainstorming session, the most extreme being to lay off twenty percent of the workforce permanently. The least disruptive was to retain the full complement of employees and merely schedule them on a revolving four-day work week until the crisis is over and the company can return to full production.
The management eventually decided to reduce the working hours of each production worker instead of laying off employees. They felt that dismissing workers from their jobs would be too disruptive, and before they could do so they would have to meet with the union members and negotiate who should be dismissed, according to the terms of their collective bargaining agreement. They expected stiff opposition and a possible court case if they were to insist on laying off people. Unfortunately, when the decision was implemented, many of the good employees lost interest in their jobs and filed for resignation when they were offered better-paying jobs by a competitor firm. The final decision achieved the objective to reduce labor costs by twenty percent. ...Show more