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Case 1: ABC Foods (30 marks) At the ABC Foods, there are store associates, cooks, pastry chefs, supervisors and managers. The company operates at four
Case 1: ABC Foods (30 marks) At the ABC Foods, there are store associates, cooks, pastry chefs, supervisors and managers. The company operates at four locations in Toronto. The store makes some ready-to-go meals and baked goods which are quite popular. The company is a classical firm which offers food products at a competitive price. Store associates rotate between working on the floor stocking products and working at cash. Store associates are paid at $ 17.50 an hour with statutory benefits. Cooks and pastry chefs are paid at ($20 or more) based on their experience. There are 60 store associates and the company has been dealing with high turnover in this group since the pandemic. Each department has one or two clean-up employees who clean the offices and also take care of the washrooms, hallways, and other areas. The cleaning job has the lowest status of any job in the plant and the plant has had difficulty getting enough cleaners. The pay for cleaners is based on a flat hourly rate of $16 with statutory benefits. There are 10 cleaners in all. They report to the supervisors of the departments in which they work, but the supervisors are very dissatisfied with them. A common complaint is that as soon as a cleaner knows what is expected on the job and learns to do it right, he or she quits. Moreover, the cleaners are frequently absent and often come late. Supervisors are concerned as hygiene levels need to maintained and outsourcing cleaning services is not an option. The company wants to introduce flexible benefits plan for the retail store associates which would allow these employees satisfy their needs. Discuss whether this would help address the compensation related problems the company is facing. Explain your answer. (10 marks)
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