Question
Bonne Bell Factory employees have an average age of 70 years. The morning shift at the Bonne Bell Factory plant in Lakewood, Ohiocomprised of 86
Bonne Bell Factory employees have an average age of 70 years. The morning shift at the Bonne Bell Factory plant in Lakewood, Ohio—comprised of 86 assembly line workers—packed and boxed 10,800 lipstick sticks. Anything over 10,000 is considered good, but in addition to meeting its production goals, a peculiar characteristic of this assembly line is that the average age of the workers is 70 years old. The oldest one has just turned 90. This production department was formed in 1997 exclusively by senior citizens, not as an experiment, but as a practical business decision. The company needed workers, labor markets were very tight and older employees were available. The president of the company, who is 76 years old, proposed the idea. His executives in charge of manufacturing and packaging were skeptical. They thought that these workers would be too slow and expensive or would be out of step in a high-tech world. They worried that they would complain about not being able to do work, needing rest breaks, or not feeling well. The president refused to accept stereotypes. Although he didn't know of any other company that had a senior department, he decided to give it a try "to see if it works." And it worked. Retirees now make up nearly 20 percent of Bonne Bell's 500-employee workforce. The group takes on work that was previously outsourced, saving the company more than a million dollars in the first four years and silencing the skeptics. Boarding goals were set and met. Turnover is almost zero and the company has a considerable waiting list of seniors who are interested in taking the vacant positions. Seniors have proven that they are an ideal source of new employees. But not only have they proven themselves to be productive and loyal, they also help keep costs down. Since almost everyone receives a Social Security pension, they are not completely dependent on their jobs to support themselves. They don't need a $15 or $20 an hour job to break even, and they seem more than happy to accept rates that start at $7.50 an hour and go to $8 an hour after the first year. Additionally, the company saves by not giving these employees health care benefits. Almost all are covered by their spouse's insurance or the government system and say they do not need further coverage.
After reading, answer the following questions:
- How do the facts of this case agree with the age research we study in the chapter?
- Does this factory practice reverse age discrimination?
- Do you think these older workers would perform as well if they were integrated into a department with younger colleagues? Define your posture.
- Do you think Bonne Bell's success in hiring employees is portable to other companies? Why?
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