Labour Laws and Unions

09th April, 2012

Labour Laws and Unions
Company Background:
Ford motors is the world’s third largest automotive manufacturing company in the world, it was incorporated and established by the founder Henry ford in the year, 1903. The company signed the first four- year labor contract with United Automobile Workers Union in October 2011 and also decided to add 12,00 jobs along with an investment of 6.2$ in the company’s United states plants.(New York times, 2011).

Legal Obstacles and Issues:
The current economic meltdown has hampered the growth of many automobile giants among which, Ford Motors has also been affected and this has led the unions to take decisions of reducing the workforce to avoid the company from outsourcing its manufacturing activities. This could go against the company and raise a legal issue as the company has entered into a contract with UAW, agreeing to provide 12,000 job opportunities.
However, the company currently reduced the risk of any labor unrest, but they would have difficulties in investing capital in the employment and operational activities in the United States, which would go against the clause of investing $6.2 billion in the United States plants.

Laws that can be broken due to the legal issues:
The biggest legal threat that the company faces would be if Ford Motors decided to lay off their employees due to the current economic crisis. The company could enter in a legal suit with the labor unions if the company cannot show fair reasons to reduce the workforce. The company would also break the local or state laws with regard   to the compensation to be provided to each redundant worker due to the financial...

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