Reference no: EM133181350

Contracts

The Zion International company is dedicated to the sale of medicines, and has a valid collective agreement with the United Workers union. The union contract has a seniority clause and a security clause, which guarantees that workers cannot be substituted or replaced by other workers, and that any dismissal will be done taking into consideration the seniority of its workers. Workers perform work on the production line. The company is experiencing a reduction in its sales of medical products, so management is analyzing the following alternatives to solve the problem:

1. Subcontract the services of an external company that provides the same service at a lower cost.

2. Fire older employees who earn the most, and you'll save the most money.

3. Fire employees in order of seniority on the same day without prior notice.

4. Dismiss employees in order of seniority, giving notice sixty days before the effective date of the layoff.

5. After reading the case, select the alternative that you understand is the most appropriate for the company to take. Analyze and justify your answer.

6. Explain why you do not favor each of the other alternatives. Justify with an example.

7. Conclusion