Locating the New Recreational Vehicle Plant example

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Locating the New Recreational Vehicle Plant

Numerous economic factors are taken into consideration when a company plans to expand its operations. High wages are negatively affecting company profits and union-free workers get lower wages in comparison to ones who work in a company with the union. With that being said, employers are motivated to avoid unionization and are able to do it with a few changes in management.

As for location of the new plant, environmental scan and demographic research should be done to choose the most appropriate area to build a plant with the least amount of risk to the environment and an opportunity to provide working places for citizens. Besides, unionization rate is important. For example, South Carolina unionization rate is relatively low (“South Carolina: Union jobs aren't welcome here”, 2014). The size of the union-free plant is 500 workers so it would be sufficient to hire a few supervisors who will be responsible for providing employees with communication they need. They will update the staff on business news and listen to their complaints or suggestions. It is important to make the employees feel that their work is valued. Wage surveys’ results and employee turnover statistic should always be considered. These results can lead to solution of mandatory bargaining issues. Managers need to find out what wages the competitors are paying and reconsider wage policy if the difference is big enough. One of the issues unions deal with is health-care coverage of workers retirees (Kiley, 2009), that is why to maintain the plant union-free the company's safety record has to be improved. Managers can “establish a reward program for having a better, safer workplace” (“How to Maintain a Successful Union-Free Workplace”, 2017). The need to conduct training should be taken in consideration for the professional growth of the workers. It will not only match employees’ ambitions but also keep the company competitive.

With a wise choice of location, size and competitive wages and benefits of the new plant it is possible to keep it union-free. It will help the company to increase its profit.

References

How to Maintain a Successful Union-Free Workplace. (2017). Tomfrederickslaw.com. Retrieved 30 January 2017, from http://tomfrederickslaw.com/services/how-to-maintain-a-successful-union-free-workplace/

Kiley, D. (2009). A mucky road for the UAW. Businessweek, (27).

South Carolina: Union jobs aren't welcome here. (2014). USA TODAY. Retrieved 30 January 2017, from …

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