What are the pros and cons of North America tire’s strategy of hiring replacement workers? How ethical is the behavior of management?Among other companies, there are various pros and cons of North Americas tire’s company to hire replacement workers. The main advantage is that the company will continue to perform its regular duties; there are also possibilities of the company not to drop some of their clients to the competing companies. On the other hand, the company is likely to lose most of its best-performing workers. There is also a big possibility of not having professional workers because they lose workers trust, no professional worker would wish to stay at the place where there is a possibility of losing the job anytime. The management was ethical in such that it tried its best to make the employees the best affordable offer in consideration with the aimed profit (Nkomo, et al., 2011).

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Assuming the firm’s goal is to break local 974 of the United tire workers of America what are the advantage and disadvantage of the strategy?
By breaking 974 of the United tire workers of the American the company will gain such that they will have the control of all of their worker’s salary and wages. In case the workers decide to form another organization then the new organization will always fear to be done away with by the company like the previous one for hence the organization will be advantaged. However, the company’s employees will be disadvantaged in such that they will be exploited since there is no one to fight for their rights. Without labor unions, the employees are slaves (Johnston, & Hancké 2009).

What standards should the firm use in setting the wage rates?
The company should use the geographic standard of setting wages. The geographical wage setting standard is a strategy on which salaries of the company are set on consideration of the cost of living of peoples living in a different location. This method will be applicable to the company because it has different branches in different areas on which the cost of living in these areas is different.

  • Johnston, A., & Hancké, B. (2009). Wage inflation and labor unions in EMU. Journal of European Public Policy, 16(4), 601-622.
  • Nkomo, S. M., Fottler, M. D., & McAfee, R. B. (2011). Human resource management applications: Cases, exercises, incidents, and skill builders (7th ed.). Mason, OH: South-Western Cengage Learning.