-
Essay / Business Ethics: A Case Study - 748
This article is an analysis of the closure of the Speedy Motors Company assembly plant in Eastland, Michigan, and what might have been done differently. Speedy Motors Company (SMC) gave less than a month's notice before laying off nearly 2,000 workers and closing the factory. This facility has been creating jobs for the community for over 20 years. In terms of closure, the factory should feel morally obligated to provide at least 60 days' notice. "The Worker Adjustment and Retraining Notification Act is a federal law requiring employers to provide workers, their unions, and state and local government officials with sixty days' notice of a plant closing or massive layoffs. (FindLaw, 2002.) This law applies to all private sector employers with at least 100 employees who close the plant or lay off at least 33% of the employees. Regarding employee benefits, trying to find other jobs for employees at one of SMC's other factories (especially for management positions) would be very helpful to all parties. This would create goodwill at closing and hiring people who are already trained could reduce costs in the long run. This could involve action on the part of employees, but at least they would have the possibility of retaining their mandate within SMC. Depending on the contract signed by each employee, severance pay may be required. Additionally, establishing a short-term employment office might be a good idea to secure jobs for employees who cannot be relocated. Stakeholders can be defined as “anyone who has an interest (or “stake”) in what the entity does.” (Stakeholder, nd) This includes not only its suppliers, employees and customers, but even "members of a community where its offices or factory may affect the local economy or environment." (Free definition, 2004). This definition clearly sets out all relevant stakeholders. This closure would most certainly affect the entire community since the plant has been open and operating in this town for over 20 years. Trying to place as many employees as possible in other factories across the country would be the best way to help employees as stakeholders. . Given the severance package and 60 days notice, more than necessary was done to keep the interests of stakeholders in mind. The primary responsibility should lie with society as a whole. It cannot be known at this stage what other options they considered before deciding to close the plant, but there must have been some sort of "workaround" that could have been attempted..