Corporate disaster is always possible when tipping off creditors and employees well in advance of plant closings. Yet, liberal politicians and their union backers have legislation where employers of a certain size and type must notify employees well in advance of possible close-downs.
Employees would like to know early on if they are to be trained for other jobs. But such action may unduly scare them in the event the plants are not eventually closed.
Often, financial conditions are poor, and finances cannot be arranged properly until the last minute. However, once a notification has been made, companies may have already lost employees with which they would have been able to salvage the operation.
Furthermore, once the mandatory plant closing announcement is made, the company’s credit may be permanently damaged. Stockholder values, including pension holders and similar institutions, may be adversely effected.
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