The WARN Act
The management was right by closing the company because keeping the company open will only lead the company to incur additional costs therefore not benefitting it and the workers. The workers will, therefore, experience job termination soon in order to avoid any further financial expenses that may lead the company to undesired situations like lack of funds to pay the workers and to run the company’s day to day activities. Therefore, closing the company is a very wise idea.
When the company is closed, the workers will have a chance to look for new jobs instead of being kept at the plant to work yet they are making no profit. Should the workers be unable to secure new jobs, they will be able to secure unemployment reimbursement. Even though the circumstances are difficult, the extra few months will do nothing to advance the condition but will only result in costly expenses that the plant would incur. In order to avoid incurring such costly expenses, the company should be closed as soon as possible.
Closing of the company is relevant to the Work Adjustment and Retraining Notification act because the 3(a) 1 part of the Work Adjustment and Retraining Notification act allows a company to close before 60 days if the owner of the company is able to get finances to the business through any other commercially logical method but cannot be able to sustain the company (Tennessee, 2005). . Pursuant to part 4 (b) 1 of the Work Adjustment and Retraining Notification act calls for immediate termination of jobs when a company is experiencing disastrous financial situations that are not logically predictable before the 60 days requisite.
The disastrous financial situations caused by sudden unexpected and dramatic actions or conditions which are outside the manager’s control, like pulling out from a chief client and the consequent failure of dialogue. The pulling out of the chief company is an occurrence that could have been anticipated with the company’s judgment as practiced by the same employers within the same business and the same market. The management of the company has been having a good confidence attempt to dialogue and raise funds as seen in the WARN act (Tennessee, 2005).
It is true that the managers should still have to pay other employees for 60 days, but that is not an instance of preferential treatment, relatively it is because the management still needs to take on the required steps to close the company. Getting finances from another source is not possible given the bothering state of the company, therefore, indicating that the company should do no more payments as it is presently by keeping the plant open for duration of 60 days in order to accomplish the predictable time requirements of the Work Adjustment and Retraining Notification act (Branham, 2005).
It is true that the firm hardly has any other financial assistance to give to the workers. The company is working towards its closure, therefore, making its workers lose their jobs. There is no other assistance the company can give to its employees. Due to the company’s financial state, outplacement is not possible as the company does not intend to direct the employees to new employment inside their field. The location of the company may make it difficult for the workers to look for other jobs.
Tennessee. (2005). WARN Act technical assistance guide: Worker adjustment and retraining notification (WARN) act of 1988. Nashville, Tenn.: Tennessee Dept. of Labor & Workforce Development, Employment & Workforce Development Division, Dislocated Worker Unit.
Branham, L. (2005). The 7 hidden reasons employees leave: How to recognize the subtle signs and act before it’s too late. New York: American Management Association.
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