The local textile plant has a workforce of 55 full-time hourly workers, 12 part-
ID: 449649 • Letter: T
Question
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 purpose of WARN act: It is a US labor law which protects employees and their families from sudden unemployment and gives them time to adjust to this loss of employment and seek new employment in the mean time.
As per the WARN act all of the above mentioned employees (55 full time workers, 12 part time workers & 6 managers) are covered in this act. There are certain exceptions when this act would not be applicable, which in this case could be classified under 'faltering company' or 'Unforeseeable business circumstances'. Having said this, it could still be a debatable situation if the company would be charged under this act.
But to be on a safer side my recommendation would be to layoff 49 full time workers as it would not activate this act and give a 60 day notice to rest of the workers, so the maximum implications would be the salary payable for 6 full time & 12 part time workers)
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