Analyze the following situation: The local textile plant has a workforce of 55 f

Question

Analyze the following situation: The local textile plant has a workforce of 55 full-time hourly workers, 12 part-time workers (less than 15 hours per week), and six managers that are salaried. The company has been struggling for about five years and has just lost its only major account with a sporting clothes company. Contract renegotiations have been intense for the past six months, but they collapsed two days ago. There is barely enough cash to pay workers for their last two weeks of work. In order not to incur additional payroll obligations to the workers, the company has called a meeting of all employees to announce the plant's closing at the end of the week (in two days). Although the workers were not overly surprised, they were overwhelmed that so many would be seeking employment in their small community within the next few days. Even though the hourly workers are to be terminated at the end of the week (in two days), managers (those that are salaried) will receive their pay for another 60 days as they handle the closing of the plant. Analyze this situation from the perspective of the company managers and the HR department by addressing the questions below. Before beginning your analysis, read Section 639.9 "When may notice be given less than 60 days in advance" of the Worker Adjustment and Retraining Notification (WARN) Act. Click here to access the WARN Act. For your report, evaluate management’s human resource plan of action for the immediate plant closing, including the following items: Assess the purpose of the WARN act, including potential pros and cons. Evaluate whether management’s human resource plan for the immediate plant closing is the correct plan, including legal implications of the WARN act as it pertains to the scenario. Justify recommendations for possible alternatives the managers and HR have in handling this scenario, including the types of assistance that might be provided if workers must depart in two days. Compose your report in APA format.

Explanation / Answer

The Worker adjustment and Retraining Notification Act, (WARN) is a labor law which protects the interest of the employees. It insists that the employers with more than 100 employees should provide a notification of closing the plant before 6o days so that they can find another job. This law is applicable to all the employees including the hourly waged, salaried, managers etc.

Pros: this act protects the employees and their families from lose of employment immediately. It also supports the organizations so that it may not face any legal actions.

Cons: The negative side includes that if the organizations facing serious financial crisis , they cannot close the plant immediately . They also will have to find sources to pay the employees which can put the organization into bankruptcy.

From the case it is highlighted that the plant is going to close and the daily wages employees will have to stop their employment within 2 week. It is certainly a short notice to the employees which can put them into ambiguity. Being a responsible organization the management should have given the prior information to the employees so that they can make their living easier. The organization may have to face the legal implications if any of the employees sue against it.

Some of the recommendations which can be given to the employees is to provide som guidance to the employees so that they can get another job easier. The management can also provide some compensation to the employees so that they can make their living till they receive another job at least for 2 months. through this the management can satisfy the employee and can get rid of the legal obligations to some extent.

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