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Gigantic MotorVehicles,Inc

Question 52

Multiple Choice

Gigantic MotorVehicles,Inc.,has more retired employees than currently-employed workers.As part of its generous benefits plan in decades past,it provided all of its retirees with full medical benefits.Most of GMV's retirees are on fixed and limited incomes,and are barely making ends meet with savings,pension,and Social Security.In addition,many of the most elderly of the retirees,those over 80,have significant and expensive medical problems.Most of the retirees spent their entire careers with GMV,and actually took and kept these jobs just so that they could retire with good pensions and benefits.GMV has had disastrous financial performance over the past few years and has been cutting costs as much as possible without destroying the company's ability to perform.As HR director,your face all of the following issues EXCEPT


A) cutting health benefits to retirees and facing lawsuits.
B) the ethical dilemma of breaking the company's promises to people who are too old to have any other options for health care.
C) facing negative press and damaging GMV's image by acting against the interests of elderly and loyal former employees.
D) federal prosecution for cutting retiree's health benefits.

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