Question
Zion International is a company engaged in the sale of medicines, and has a collective bargaining agreement in force with the United Workers union. The
Zion International is a company engaged in the sale of medicines, and has a collective bargaining agreement in force with the United Workers union. The union contract has a seniority clause and a safety clause, which guarantees that workers cannot be substituted or replaced by other workers, and that any layoffs will be made taking into consideration the seniority of its workers. The workers work on the production line. The company is experiencing a reduction in sales of medical products, and management is analyzing the following alternatives to solve the problem:
Outsource the services of an external company that provides the same service for less cost.
Lay off the most senior employees, who are the highest earners, thus saving more money.
Lay off employees in order of seniority on the same day without notice.
Lay off employees in order of seniority by giving sixty days' notice prior to the effective date of the layoff.
After reading the case, select the alternative that u think is the most appropriate for the company to take. Make an analysis and justify the answer.
Explain why do not favor each of the other alternatives. Justify with an example.
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