GENERAL MOTORS' WORKER LAYOFFS.
Need for plant closings in early 1990s, economics, effects, ethics, stakeholders, decision making process, unions, restructuring, alternatives.
During the early 1990s, General Motors, America’s largest auto manufacturer, was faced with the problem of how to cut costs in... more
During the early 1990s, General Motors, America’s largest auto manufacturer, was faced with the problem of how to cut costs in order to improve its productivity and maintain its share of the American car market. The company ultimately decided on closing several plants in the United States. The result was that thousand of GM workers lost their jobs, but the company was able to improve its financial performance. This research investigates the ethical dilemma that the company faced when making these decisions, why there is an ethical dilemma, factors that influenced the GM decision, the decision that was ultimately made and what could or should have been done differently.
What the Dilemma is About
The dilemma that GM faced was whether it should close its plants and lay off its wor