The plant-closing act applied to the situation

Assignment Help Operation Management

Reference no: EM132076468

Arrow Automotive Industries remanufactures and distributes automobile and truck parts. Its operating plants produce identical product lines. The company is planning to open a new facility in Santa Maria, California. The employees at the Arrow plant in Hudson, Massachusetts, are represented by a union, the United Automobile, Aerospace, and Agricultural Implement Workers of America. The Hudson plant has a history of unprofitable operations. The union called a strike when the existing collective bargaining agreement expired and a new agreement could not be reached. After several months, the board of directors of the company voted to close the striking plant. The closing would give Arrow a 24 percent increase in gross profits and free capital and equipment for the new Santa Maria plant. In addition, the existing customers of the Hudson plant could be serviced by the Spartanburg, South Carolina, plant, which is currently being underutilized.

1. What would have to be done if the plant-closing act applied to the situation?

2. In the Arrow Automotive (p. 796), what circumstances would have to be present for the plant-closing act to apply?

Reference no: EM132076468

Questions Cloud

Supervisor role and the competencies it involves : Read about the following concepts. The organization’s structure. The management process. Supervisor’s role and the competencies it involves.

How do male-female leadership styles differ in workplace : How do male and female leadership styles differ in the workplace? What gender barriers exist in the workplace?

Selections for the west coast transit marketing team : Selections for the West Coast Transit marketing team were made and now your job is to present the recommendation to your director.

Intense competition such as price wars are accepted practice : Intense competition such as price wars are an accepted practice in the US, But cooperation between companies has legal remifications because of antitrust laws.

The plant-closing act applied to the situation : Arrow Automotive Industries remanufactures and distributes automobile and truck parts. What would have to be done if the plant-closing act applied to situation

Were the underlying concerns legitimate : Were the underlying concerns legitimate? What could the leader have done to address the situation or prevent the concern from arising?

The largest cost component of any product : Purchasing transportation services is typically the largest cost component of any product.

What is the primary advantage of motor carriers : What is the primary advantage of motor carriers versus other modes of transportation? Be sure to cite or include links to your sources.

What is meant by the notion that leadership is process : What is meant by the notion that leadership is a process? Does increasing variability always, sometimes, or never degrade the performance of a production system

User Account

All Pages