Please rewrite the below case study paper.
“A LAYOFF PROBLEM”
“A REQUIRED LAYOFF AT BURLINGTON AUTOMOTIVE INDUSTRIES”
After our meeting last week, I began a research and investigation of plant shutdowns and the issues that arise from such transactions. I have compiled a summary of implementations regarding the closure of the Kenwood plant.
I broke the news to each of the HR managers from the other plants, inquiring about which positions are currently available. As expected, there is currently limited employment opportunity at these plants. The few positions that are available are hourly labor positions in the plant. Those positions might prove a good fit for some of our employees, if they are willing to move. There are no supervisory or management positions available however, so this would unlikely be a beneficial move for any of our supervisors and management staff. Regardless, it is important that we offer these positions to all of our employees first. I have asked each of the HR managers to put a hold on hiring until I have had a chance to talk with you.
Some of the issues we will need to discuss regarding any possible employee transfers are severance pay and whether or not BAI should provide any moving costs. It is unreasonable to expect an employee to be able to move and get settled in to one of the other plants without a pause in their paycheck. To help them with the transfer, I would recommend 2 weeks of severance pay, with the stipulation that they first must use any available vacation days. If they have 2 weeks of paid vacation, they would use that instead and no severance pay would be allotted. I recommend covering part of the moving costs for two reasons. First of all, because of the circumstances under which the employee has to make the move. And secondly, because there would actually be a cost savings to the company if a transfer took place rather than a new hire, due to training. I recommend covering 100% of the cost of moving to include travel, hotel, and vehicle rental only.
The question of when to notify our employees of the closing of the plant is crucial to its success in the final few months. The Kenwood plant has obligations to its customers. With too early of a notice and employee fall-outs, those obligations could become challenging and expensive to meet. Yet we have an obligation to our loyal employees, in an effort to give them ample time to find new jobs in the tight market of Kenwood, Ohio. A middle ground is going to need to be established, with a leaning towards the benefit of our employees. I recommend that we give our employees a three month notice. This amount of time is more than fair. In effort to keep as many employees as possible throughout those three months, the severance package (which I will discuss next) will only be available to those who stay until the closing of the company. In the event that an employee leaves before the company closes December 31st, no severance package will be provided. Since the purpose of a severance package is to sustain income during the search for other employment, there is no need to provide this service to those leaving the company for new employment.
After researching severance package policies among several other companies in Ohio, I have come to the conclusion that policies vary greatly. However, after analyzing these policies, it appears that on average, a severance package includes a minimum of one month for all employees and an additional month of severance pay for each year of service recognized, up to a maximum of six months. I recommend a little give and take. Let me explain. As stated previously, employees will be given three months to start searching for new employment. By giving them this â€œextraâ€ time, I believe it is acceptable to reduce the length of severance pay from the average. These two decisions are in the best interest of the employees and the company. We are providing them with ample time to search for new employment, and in doing so, justifying a shorter severance pay period. This shorter severance pay period will in turn reduce the loss to our bottom line.
Without the financial data from the Controller, I cannot tell you whether or not these implementations will result in a profit for BAI. However, I believe that the methods I have presented are morally and ethically sound and in the best interest for both the company and our employees of the Kenwood branch. Please get back with me at your earliest convenience so we can confirm these events.