What problems would you face if you did this? & What action would be best and why?

Question

Going Back on your word
Two months ago your company took over a competitor who had a few months earlier re-equipped its factory with up-to-date machienry. at the time of the takeover you gave assurances to the workforce taht there would be no job losses. Since the takeover you have tried unsuccessfully to raise finace for similar new machines in you original factory where you hava a militant trade union. The easiest solution to the problem is to lay off the workforce in the recently acquired factory and transfer the machines to your own factory.

Answer 1

Certainly there are reprocussions to your company reputation. There maybe legal effects depending on what was said or not said. There is nothing listed in your question. Things change in business and the company can't know everything ahead of time. All things being equal, I would consider closing the militant plant and moving everything to the new factory. Or at least threaten the unions that I would do that.

Answer 2

Well, if you told your workers that there would be know losses in jobs, you should not lay off anyone. You can... but you shouldn't. If there is any legal documentation, or evidence that you promised absolutely no job lay offs, strikes and riots may start. You may even be sued by a few workers.

There will be lots of controversy, and if you are in a financial position where you can't pay your employees, you must either suffer and sacrifice your pay, try to sell a portion of your company, or join in a partnership with another business.

It will be very risky for you to lay off workers. There was actually a case where IBM payed my mom to quit because they were worried about the possible law suits that could come if they just fired a lot of people after promising not to do so.

I wish your business the best of luck, and I hope you make an educated, confident, good decision!

Answer 3

What in the world is a militant work union? Does it mean that your original workers stick together and expect to keep their jobs? You shouldn't make promises that you can't keep. You didn't think it through and didn't have a good plan so now you are faced with unpleasant decisions. Your word is no good. If you were responsible, you should be fired.