The case of the plant relocation

Furthermore, there are requirements for a solvent recovery system, which also increases operation expenses. Exposure to toxic chemicals in the workplace is permitted at higher levels than in the United States, allowing corporations to dispense to some degree with costly procedures and equipment.

Eloctrocorp Plant Relocation

The Federal Labor Law LFTwhich is incorporated into the Constitution, includes special provisions concerning the work of children between the ages of 14 and Smith to more fully investigate the possibility of operations in Mexico, the Philippines, and South Africa.

With Electrocorp needing to alleviate rising costs in labor and production, a strategic and well-developed relocation is key to minimize bad publicity and maximize opportunity for a large company that provides on-board electronics of vehicles.

Since there are a few plants located in the United States, we would close down the smaller facilities and try to consolidate operations into a larger facility. Moving operations to Mexico would be out of the question because it will raise suspicion when it is known that people will work for less money and more birth defects happen because there is less strict regulations for business operations in that country.

This exhibits that Electrocorp shows that they know that a major relocation is difficult and want to accommodate employees as much as they can while considering costs of operation. Among these various provisions, minors in this age group are prevented from work that is "dangerous or unhealthy," underground or underwater, itinerant, or which "may affect their morals or good behavior.

The Case of the Plant Relocation Essay Sample

This exhibits that Electrocorp shows that they know that a maj Since there are a few plants located in the United States, we would close down the smaller facilities and try to consolidate operations into a larger facility.

Few strikes have been attempted; most have been quickly resolved, while others have resulted in the dismissal of strike leaders in cases where the labour courts have declared the strikes illegal. You are the chief executive of Electrocorp, an electronics company, which makes the onboard computer components for automobiles.

There is evidence that the government of Mexico is undertaking efforts to reduce child labour in the informal sector. Electrocorp is a major employer in each of the U.

Some of the solvents used are carcinogens and must be handled with extreme care. However, the legal registration of unions in Mexico is impeded by the authorities, specifically by the local Conciliation and Arbitration Boards CABs which have sole authority to regulate union elections and handle all phases of labour dispute resolution.

The health and safety and environmental regulations are equivalent to those in Mexico, but there have been no public complaints or opposition regarding birth defects, cancers, or other illnesses.

However, the cost of production has risen, causing profits to decline. Registration by CABs is necessary for trade unions to obtain legal status but these boards act to withhold or delay registration from unions that are hostile to government policy or to vested economic interests, through the improper use of administrative requirements.

The Case of the Plant Relocation By: The first step in a major reconstruction of production must involve a key step in social responsibility.

The Case of the Plant Relocation

In contrast to other sectors, few maquiladoras have collective bargaining agreements with unions. The rate of birth defects has been high in many Mexican border towns where similar plants are in operation. Anti-union attitudes on the part of employers and the existence of "company unions" are considered to account for the low rate of unionization.

However, you are aware of many other corporations, including your competitors, that have shut down their U. With unions wanting more money and United States regulations becoming stricter; if there are other alternatives to reduce cost and increase profit companies must make a difficult decision to move operations to another state and possibly another country.

South Africa Conditions in South Africa are positive in some respects, but not as favourable in economic terms as in Mexico or the Philippines. Freedom of Association and the Right to Collective Bargaining Mexico has a pluralistic trade union situation guaranteed by the Constitution which provides workers the right to form and join unions of their choice without prior authorization and the right to strike.

We can then offer a relocation package for employees willing to relocate to another part of the country where a plant will remain open in the United States. As in Mexico, the workers complain that the rate of pay is not a living wage, but it is the present market rate.

You know that the employees who will be laid off because of plant closures will have difficulty finding equivalent positions and that increased unemployment, with its attendant social costs, will result.

Citizen health groups have begun protests, accusing the companies of contamination leading to illness. Shareholders have been complaining to you about the declining fortunes of the company. Until recently, all of your production plants were located in the United States.

The first step in a major reconstruction of production must involve a key step in social responsibility. Where such abuses lead to employer-dominated trade unions, registration requirements and election procedures have been used to prevent workers from forming new unions.Open Document.

Below is an essay on "Ethical Dilemma on the Case of Plant Relocation" from Anti Essays, your source for research papers, essays, and term paper examples.

Production costs are rising. Your company can make more money for shareholders by relocating your plants to a country with lower labor costs and fewer regulations. Using this case, Stan Raggio, senior vice president for sourcing and logistics at The Gap, and Karen Musalo, then director of the.

THE CASE OF THE PLANT RELOCATION INTRO TO BUSINESS AND TECHNOLOGY January 5, During this day and age when people want it now and want it fast, one can only envision how to make the fast honest buck.

The case of the plant relocation Options Continue operations in US Move operations to Mexico Move operations to Philippines Move operations to South Africa.

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