Arrow Automotive Industries remanufactures and distributes automobile and truck

Question

Arrow Automotive Industries remanufactures and distributes automobile and truck parts. Its operating plants produce identical product lines. The company is planning to open a new facility in Santa Maria, California. The employees at the Arrow plant in Hudson, Massachusetts, are represented by a union, the United Automobile, Aerospace, and Agricultural Implement Workers of America. The Hudson plant has a history of unprofitable operations. The union called a strike when the existing collective bargaining agreement expired and a new agreement could not be reached. After several months, the board of directors of the company voted to close the striking plant. The closing would give Arrow a 24 percent increase in gross profits and free capital and equipment for the new Santa Maria plant. In addition, the existing customers of the Hudson plant could be serviced by the Spartanburg, South Carolina, plant, which is currently being underutilized.
1.....What would have to be done if the plant-closing act applied to the situation?
2.....In the Arrow Automotive (p. 796), what circumstances would have to be present for the plant-closing act to apply?

Explanation / Answer

1.....What would have to be done if the plant-closing act applied to the situation?

According to the plant closing act, otherwise called as the WARN act (Worker Adjustment and Retraining Notification Act) is a US labor law which requires employers to issue advance notification to the employees including managers, supervisors, unions representing the employees and the mayor. The employer should provide a 60 day calendar advance notice of plant closing and mass lay offs so that the employees have sufficient time to get another job to support their families or get well trained in their skills so that they are competent enough to compete in the job market.

2.....In the Arrow Automotive (p. 796), what circumstances would have to be present for the plant-closing act to apply?

In the Arrow Automotive, the circumstance should be that

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