Arden glass works has been the major employer in the town

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Reference no: EM13749405

Arden Glassworks has been the major employer in the town of Arden for over 20 years, drawing mainly on the low and semi-skilled labor force. Now, a large telephone marketing firm is opening an operation in Arden which will also employ low and semi-skilled workers. Which of the following statements is TRUE?


Since Arden and the marketing firm are in different industries, the impact on Arden's workforce will be minimal.


Arden will need to offer higher pay and benefits to its employees in order to keep them from moving to the new employer.


The marketing firm would only open a new operation in a geographic location that has a low average wage so that it can minimize labor costs. Consequently, there will be no upward pressure on the wages and benefits Arden must pay.


Since Arden and the marketing firm are in the same geographic area, Arden will need to consider the pay scales and benefits the new firm will offer.



Reference no: EM13749405

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