Additional Case 6.2
Terra Alta employs nearly 15,000 workers worldwide. The firm wants to reduce its workforce through an early retirement program. The firm has hired you to organize and implement the program.
Employees over age 58 are eligible, but managers don't want to lose key older employees. Program eligibility should be limited to a short period of time. Terra Alta managers need a fairly accurate estimate of how many employees will participate in the program.
Terra Alta expects a legal and humane program that avoids litigation issues. Employees should have an accurate picture of their future if they decide to accept early retirement.
-Refer to Additional Case 6.2.To avoid any legal problems,what would you most likely recommend?
A) Offer minority employees larger severance packages to minimize discrimination concerns.
B) Tell managers not to treat older workers any differently than they have in the past.
C) Implement a hiring freeze at the same time as early retirement is offered.
D) Avoid giving more than 30 days advance warning of a layoff.

Question

Additional Case 6.2
Terra Alta employs nearly 15,000 workers worldwide. The firm wants to reduce its workforce through an early retirement program. The firm has hired you to organize and implement the program. 
Employees over age 58 are eligible, but managers don't want to lose key older employees. Program eligibility should be limited to a short period of time. Terra Alta managers need a fairly accurate estimate of how many employees will participate in the program.
Terra Alta expects a legal and humane program that avoids litigation issues. Employees should have an accurate picture of their future if they decide to accept early retirement.
-Refer to Additional Case 6.2.To avoid any legal problems,what would you most likely recommend?
A) Offer minority employees larger severance packages to minimize discrimination concerns.
B) Tell managers not to treat older workers any differently than they have in the past.
C) Implement a hiring freeze at the same time as early retirement is offered.
D) Avoid giving more than 30 days advance warning of a layoff.

Quizplus · Accepted Answer

Treating older workers differently than in the past could be seen as age discrimination, which would lead to legal problems. Offering larger severance packages to minority employees could also be seen as discriminatory. Implementing a hiring freeze at the same time as the early retirement program could help minimize layoffs and reduce potential lawsuits, but it would not necessarily avoid litigation issues related to age discrimination. Avoiding giving more than 30 days advance warning of a layoff would violate the WARN Act and could lead to legal repercussions. Therefore, the best option is to treat older workers the same as in the past to avoid any allegations of age discrimination.

Additional Case 6.2 Terra Alta Employs Nearly 15,000 Workers Worldwide. the Firm Wants