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The Widget Corp. has always prided itself on the treatment of its workers. The Widget Corp. has a reputation for offering decent pay, good benefits,
The Widget Corp. has always prided itself on the treatment of its workers. The Widget Corp. has a reputation for offering decent pay, good benefits, and a respectful working environment, and it often shows up on "Best Places to Work" lists. The workers typically report that they are satisfied with their working environment. The Widget Corp. has never had any unionized employees and has never given it much thought.
However, at your weekly managers' meeting, you learn that some of the Widget Corp. employees have begun circulating union petitions to try and unionize the workforce of the Widget Corp. The employees have not yet put forth any specific demands, but your managers suggest the demands will have to do with raising wages and creating more flexible work schedules.
You bring this news to the Board, and they ask you how you intend to proceed. The Board emphasizes that the Widget Corp. values its workers, but the reality is that you, as the CEO, owe a duty to the shareholders to ensure that the business is run for their benefit. As always, the Board helpfully reminds you that they can fire you if the shareholders demand it
Please prepare a memo to the shareholders announcing how you intend to respond to the unionization movement among your workers. In your memo, you should offer two reasons to support your decision. Since this is a memo addressed to the shareholders, each reason should be presented in a way that will get them on board for your proposal, always keeping in mind what the shareholders' primary interests are. But you should assume that your workers will read it as well, and you must balance their interests: your reasons for your decision to either support or oppose the union movement must take the workers' interests into account.
In your memo, include a link to a news article that offers a realworld example of the unionization dilemma and how a particular business has responded to itbut you may not choose any articles about Starbucks or Amazon. You will need to find an article that goes into enough depth that it will be a useful example for your shareholders.
Explain to your shareholders in reference to the article what the Widget Corp. can learn from other businesses' experience with union movements.
Your proposal should be consistent with the basic legal requirements we discussed in class in the context of unions. You do not need to and should not try to understand all of the nuances of labor law in preparing your memo, but your proposal cannot be blatantly illegal.
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