Question

A manufacturing company hit by a slump in demand is experiencing a labor surplus. The company expects the market to improve in six months and it does not want to layoff any of its employees. Which of the following strategies is an equitable way to handle this issue that results in spreading the burden more fairly?a. Reduced work hoursb. Overtimec. Outsourcingd. Demotionse. Employing temporary workers

Answer 1

Answer: Option (C) is correct.

An alternative way to spread the work load more fairly is by cutting work hours, customarily with a analogous reduction in wages. This way is more decent way to weather a slump.

i.e. Instead of laying off its employees, the organization could further reduce the work hour where it could wait and expect market to improve in given period.