Reduction in Workforce
More Beer, Inc. is considered to be a 25 million dollar a year micro brewing company that is heavily involved in the direct marketing of its various micro brew products. But over the course of the recent online selling boom, their two direct marketing and distribution channels has led to significant loss of profits. Once the decision about the abandonment of the existing strategy was made, The Vice President was asked to eliminate employment of three out of six suggested employees with total consideration of all applicable laws. In order to guide More Beer Inc. properly in reduction, the layoff of three workers will have the positive impact on the company.
In the USA, the previous government has passed the Worker Adjustment and Retraining Notification (WARN) Act to notify workers about their layoffs. Each estimated candidate to be fired has to receive a 60-days advance notice of mass layoffs. The rest of the issues in America are mostly regulated by state and federal laws. For example, these can be Florida Civil Rights Act and Age Discrimination in Employment. Both acts in every particular state (Civil Rights Act and Age Discrimination in Employment) are implemented to prohibit discrimination at workplace in terms of sex, religion, origin, social status and gender. Respectively, such legal documents equalize rights of all workers (Morris, 2005).
One more applicable law that may be relevant to our reduction in employment can be Older Workers Benefit Protection Act (OWBPA) that ensures that older employees are not forced to be fired on the basis of their age (United States Department of Labor, 2012). If those experienced people are the members of trade unions, they have advantage over other employees in terms of their collective agreements with a company. Apart from this act, there are some internal organizational codes containing issues that can no way serve as the subject to layoffs. In most cases, those are moral and individual preferences and personal performance or production output.
There is also the number of general issues that need to be seriously addressed when choosing three candidates to be fired. The first priority is the length of employment. Second of all, area of specialization is also of a great importance. For example, it is reasonable and sensible to distinguish between employees who work or part time and long term projects or between those who work in a particular department and those who work distantly. The third aspect relevant here is the significance of a division for organizational progress. More responsible employees with more serious duties are prioritized. One more point of importance is education, because occupation must reflect skills and qualifications as well as respective post in the diploma. Finally, HR Department is capable of hiring its employees according to the number of days employees were missing (United States Department of Labor, 2012).
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Posted by: Shalanda Bacchus