Reduction in Workforce Exercise

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Table of Contents

Introduction
Main body
References

Introduction

The past economic problem that has been faced by More Beer Inc has necessitated the strategic reorganization of the company and this includes the reduction in the companies workforce. The process of preparation and execution should be done cautiously while paying attention to various legal issues. This will minimize the chances of being faced by lawsuits from the workers who have been dismissed and also keep the organization in the best place to deal with legal action that may be brought against them.

Main body

According to Berkowitz (2006), it is not necessary for an employer to give the employees any special notice about there dismissal unless there was a prior agreement or if there are relevant stare or federal statues. Such statues include the Workers Adjustment and Retraining Notification Act (WARN). This act applies to employees reduction which causes more than 50 employees being removed within a ninety day period. It can also be applied if the number of employees is 100 excluding those who are part time but including those who work a total of 4000 hours per week plus overtime. This will not be relevant in the case of More Beer Inc since a maximum of five people are to be fired. Warn requires an employee to give a sixty days notice before the relationship with the employee is terminated. (U.S. Department of Labor Employment and Training Administration Fact Sheet. (n.d.))

It is imperative to ensure that the reason for a persons dismissal is written and the affected people informed as soon as possible. Clear reasons for the reduction of the members of staff will aid in the defense of lawsuits. If the employees get a thourouhg understanding of the conditions that necessitated the reduction in the workforce, lawsuits brought about by misunderstanding will be avoided. (DAmbrosio, 2001)

The selection process of which particular employee is to be removed is very important because the way it is done can lead to legal action beign brought against the firm. Issues of favouritism and unfairness can come the process will have to be fair, transparent and easy to comprehend. The layoff selection system can be according to the persons past performance, skills, or contribution to the persons contribution to the capital of organization, and the persons seniority in the company. (Berkowitz, 2006),

The best mode to use should be one that will ensure that the company is able to reduce staff as much as possible without distracting the companies operations and profits. This means the people who are chosen to go should be the wane with the least performance. People who have had many cases of absenteeism and poor performance should be the first ones to go because they add little value to the company. It is important for there to be an objective person apart from the managers who can act as a safety check apart from the managers. All managers who are involved in making the decisions should be in a position to defend their choice of certain people. (DAmbrosio, 2001)

Layoffs in the organization can cause issues such as race discrimination, sex discrimination and contract violation. Although an employer has a right to employer at will, discrimination will be seen if some people are removed during the restructuring and others are not. There could be payments made to the terminated employees but this depends on the employers policies and past experience. (Lawrence, 2004)

The Age Discrimination Act makes it illegal for there to be any discrimination against individuals who are forty years and above by companies which have more than twenty employees. This group is particularly sensitive because they can sue the firm claiming that they were removed because of their age. The manager must have a number of good reasons which are not discriminatory in any was to use as his or her defense. It is advisable to consult a labor counsel who can help in coming up with a good strategic plan that will not put the company at risk of litigation. It is a good idea to give financial incentives to the older people in the company so as to encourage them to leave the company on voluntary terms. Early retirement schemes can be useful in this situation. (Lawrence, 2004)

The disabled people in the organization are protected by the Americans with Disabilities Act. A person who has a certain disability will claim that he or she was terminated not because of a valid reason like performance but due to his disability. It is very important therefore for that the company will be able to defend itself in such a position. (Lawrence, 2004)

The decision as to who to choose who to go home is difficult but it has to be done. The people who will be chosen are the ones who are adding the least value to the company at present. They are also the ones who have little prospects for the future. People with problems of keeping time, being unable to meet deadlines and doing poor quality work should be dismissed. It is important for the company to have people who work well with others thus people who are uncooperative or with bad interpersonal skill should be remove. Whatever the reason is it should be one that can stand in a court of law should there be a lawsuit against the company.

Sally James if among those who have to go will likely bring up a lawsuit on discriminatory charges. She is fifty five years old, the oldest among the candidates for termination. It is time for sally to leave the company even after serving the company loyally for 20 years. The company should be looking for people who are young, energetic and flexible. If Sally leaves it will be very easy for some one else to fill in her position. This person can even be able to do her work and other work that he or she is given. Terminating her contract will bring her misery but it is in the best interest for the company. She has failed to show that she is needed in the company in a position that will add value to the firm. She is also an uncommitted employee who is fond on missing work. She will soon need to be replaced beached she is old and the company should get rid of her before then. Perhaps she can be given a golden hand shake to persuade her to leave the company by her own decision.

Jenny Smith is of value to the company both now and in the future. Her multi-lingual skills are very useful to the company. She is able to add value to the companies marketing endeavors because she can communicate with people who are from different places thus increasing the customer base for the company. Her pregnancy is not a reason for her dismissal as she will get the baby and come back to work. If Jenny is among those who are leaving she could sue the company on the basis of discrimination due to her pregnancy. If she looses her job it can be very difficult for her especially since she is pregnant. Her husbands unfortunate loss of his job cannot determine how the management chooses. It has to be a rational choice and not an emotional one. It should be a decision that is in light of the needs of the company presently and in future.

The company will be better of with out Phillip Price. His productivity is average but he is does not have an advanced degree which is a vital part of current employee. Although he can do satisfactory work, he is not able to maximize the companys profits as he is not as good as the person who has a degree. His absenteeism problem is of much concern to the company because mean he is not devoted and he is making t he company suffer from lost time. His sexuality should not be a factor that will cause his dismissal even if the knowledge of this has caused other organization members to treat him differently. He is likely to bring forward litigation to the company because he will perceive his dismissal as an act against his homo-sexuality i.e. discriminatory charges. With the solid evidence of non-performance that the company has against him, there will be not chance for his success in court.

Mike Williams is one of the best employees with a track record that is above average. He is still young and well educated and will be able to bring value to the firm for a number of years. Mikes involvement with the Service union is of great concern because dealing with unions in matters of litigation is usually a very difficult process. Should mike be fired, the company will face the full force of the union and he will charge the company with being discriminatory to him because of his Asian origin. The racial discrimination charges he could bring forward could have very serious consequences. Since mike is a good worker, it may be possible to have him trained in a different field after his area of specialty becomes obsolete. Mike should be fired on the basis of his skills and knowledge. If it is proven that the work he does for the company will soon be useless, then he cannot sue the company because of racial discrimination.

Margaret Jones is an ambitious and forward moving person who does her sales job very well. She is however poor when it comes to team work and this is an attribute that will be of much importance after the reduction of the work force is implemented. Since there will be less people, the work that the other people used to do will have to be shared among the ones who are remaining. Her luck of cooperation is a worrying matter although she has been able to bring more sales to the company due to her hard work. She is in the union and there would be a big lawsuit ahead for the company because she can charge for discrimination because she is an African American. However she is of value to the company and should be retained.

The company should consider fixing Margaret Jones and Jenny in another part of the company because these employees add value to the firm and are also risky in that they can bring strong charges against them.

References

Berkowitz, P.M. (2006). International Labor and Employment law. United States of America: American Bar Association.

DAmbrosio, N. (2001). Conducting reduction in work force is difficult, time-consuming process. Web.

Lawrence, G. M. (2004). Due diligence in business transactions. New York: Law Journal Press.

U.S. Department of Labor Employment and Training Administration Fact Sheet. (n.d.) The Worker Adjustment and Retraining Notification Act: A Guide to Advance Notice of Closings and Layoffs.Web.

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Reduction in Workforce Exercise

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