Topic > Business Ethics: A Case Study - 748

This paper is an analysis of the closing of the Speedy Motors Company assembly plant in Eastland, Michigan and what could have been done differently. Speedy Motors Company (SMC) gave less than a month's notice before laying off nearly 2,000 workers and closing the plant. This facility has provided employment to the community for over 20 years. In terms of closing, the facility should feel morally obligated to provide at least 60 days' notice. “The Worker Adjustment and Retraining Notification Act is a federal law that requires employers to provide workers, their unions, and state and local government officials sixty days’ notice of any plant closing or mass layoff.” (FindLaw, 2002.) This law applies to all private sector employers with at least 100 employees who are closing their establishment or laying off at least 33% of their employees. As for the benefits provided to employees, attempting to find other jobs for employees in one of the other SMC plants (particularly with management level positions) would be of great help to all parties. It would create goodwill at closing, and hiring already trained people could reduce long-term costs. This may involve a change on the part of the employees, but at least they would have the opportunity to maintain their tenor with SMC. Depending on the contract signed by each employee, severance pay may be necessary. Additionally, setting up a short-term employment office might be a good idea to get jobs for employees who cannot be relocated. Stakeholder can be defined as "all those who have an interest (or a "stake") in what the entity does". (Stakeholder, n.d.) This includes not only its suppliers, employees, and customers, but also “members of a community where its offices or factory may influence the local economy or environment.” (Free definition, 2004). This definition clearly indicates all interested parties. This closure would definitely affect the entire community as the establishment has been open and operating in this city for over 20 years. Attempting to place as many employees as possible in other plants across the nation would be the best way to help employees as stakeholders. Considering the liquidation and the 60 days' notice, more than was necessary was done with the interests of the stakeholders in mind. Primary responsibility should fall on the company as a whole. What other options they contemplated before deciding to close the plant is unknown at this point, but there had to be some sort of "workaround" that could have been attempted.