2. The company continue downsizing
3. Ford and GM will give every single hourly employee a buyout “offer,” while the number of Chrysler workers being encouraged to leave will also be substantial. 4. More bribes & many jobs are a vicious.
• In general what are some of the unique challenges in retaining values talent at the same time an organization is downsizing across the board? 1. Pay for its employee loyalty
2. Fat bonuses.
3. Union caliber bennies & a virtual guarantee of lifetime employment. 4. Reward and recognition system.
• How is the impact of these job conditions magnified because of the history of these employers and the expectations that were set up by these two employers? What does the future hold for these organizations if they continue to lose talent? 1. Both car companies have been trying to set up a fund, run by the UAW, to handle most of the pension and health benefits for the UAW. This would have to be funded with as much as $60 billion from the two companies, but would take the liabilities for these costs off of their balance sheets. 2. But, the UAW may want a level of funding for this pool that is greater than the car companies are willing to give. Or, the UAW may want to fight for a higher number of jobs in the U.S. than GM and Ford feel they can handle. With falling vehicles sales and high costs, getting their North American operations profitable may be impossible no matter what the union gives. • If you were an employer who was considering hiring a former Ford or General Motors employee, what unique concerns might you have relative to hiring someone with similar background from a different company such as Toyota or BMW? • Toyota has a special culture, deep-rooted values, and respect for their workforce. Toyota’s tradition is to not lay off employees during hard...