Cost Club Case Scenario

Cost Club Case Scenario


Date : April 23, 2014

The Right to work law states that an employer cannot force an employee to belong to a labor union. The fact that the company there is no labor union does not give the power to the general manager to fire an employee just thinking that the employee will not have his legal representative. In Article 5 of the Federal Labour Act states that the rules contained in it are of public order , so will not produce any legal effect or preclude the exercise of rights, provision, whether written or verbal , where stated, among other things, the resignation by the employee of any of the rights or privileges entered in labor standards .If a worker is fired without justification and in his lawsuit seeks reinstatement of his employment, if they were to obtain a favorable award where the employer is condemn to reinstall it and it refused to enforce the award, and decided to pay compensation laws, should comply with minimum labor standards that are prescribed by law; therefore, it could not be argued that the worker always accept inferior working conditions than those established in the law, because as already stated , these rights are inalienable .
The employee has the right to claim compensation in terms of law, there must be an unjustified dismissal and it is essential to know when a dismissal is fair and when it is not. The action taken by the general manager while not illegal, it may cost more money to the company either by the above reasons or because the company has to pay allowance and fees required by the Department of Labor. It should analyze the real reasons why GM wants to lower the staff. For example, if it's economy, it must consider whether it is cheaper to fire staff and pay what the law requires or keep those employees and to avoid legal expenses and litigation firm for reinstatement of employees.
The second case is of the regional CEO that proposes to reduce wage costs by forty percent in all stores. For this we must know the...

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