What should the company do with regard to salaried

Assignment Help Business Management
Reference no: EM132280801

Please read the case and answer the questions below:

1. What should the company do with regard to salaried personnel who have vacations planned later this year and now don't have enough vacation time?

2. What should the firm do regarding the lost vacation time for all of the other employees, both salaried and hourly?

3. Should the firm change its current policy that requires salaried employees to charge their vacation bank whenever a shutdown occurs? Why or why not?


Ships, Inc. is a large shipbuilding company located in one of the eastern states. One September afternoon the firm made the decision to shut down operations due to an approaching hurricane. This was based on the forecasted arrival of tropical storm force winds to the local area as early as noon on Wednesday. They made that decision at approximately 2:00 p.m. on a Tuesday afternoon and some employees were told Tuesday by supervisors that the shutdown would occur beginning with the next morning's shift and that they were not to report to work. They were also told that the time they lost would be excused with pay.

By Tuesday evening it was very clear that the hurricane would not hit the area until Thursday at the earliest. Nonetheless, the shipyard decided to maintain the decision to shutdown on Wednesday. The emergency hotline message confirmed this information but also said that missed time for salaried personnel would be charged against each employee's vacation bank.

By Wednesday evening the emergency hotline message was updated to state that the shutdown would be continued through the first shift on Thursday with normal operations commencing on the second shift. The hurricane subsequently hit the area Thursday night (during the second shift), leaving many roads littered with branches and debris.

On Friday morning, when all personnel reported for work again (many of them without electricity), they were hit the fact that they had just lost two days of vacation- two days gone with the wind. Hourly personnel had the option of charging the two days off to their vacation bank or taking time off without pay, but salaried personnel did not have a choice-they were required to charge the leave to their accrued vacation bank. Thus action was in line with the company's policy fro complete shutdowns despite what some personnel were told prior to the shutdown.

Within a few days, many people became very upset with the way the company handled the situation and the fact that they just lost two vacation days for no good reason. Why did the firm close down operations so soon instead of waiting for the storm to hit? Why didn't it close down operations on Thursday, the day the storm actually did arrive? Some had already scheduled vacation for over Thanksgiving and the Christmas holidays and now realized that they had insufficient vacation days left. Those who had already paid for their airline and cruise tickets were particularly upset. Others were offended by the fact that they would now need to work uncompensated overtime to make up for the work missed, an action expected of all salaried employees.

The company's vacation policy states that salaried employees accrue vacation time based on length of service. Employees with less than five years seniority receive one day per month, those with five to ten years experience earn one and one half days per month, and those with more than ten years earn two days per month. Employees have the right to carry over unused vacation time to the next year. The policy also states that if the shipyard is shutdown for any reason for any reason the time lost by salaried employees will be charged to each person's vacation bank. Furthermore, the policy states that in the event of a partial shutdown, salaried employees who report to work and are then sent home will be paid for any time missed and will not be required to charge lost time to their vacation banks.

Reference no: EM132280801

Post minority-educational-support provision

J Jessica ultimately fi led a petition in court to have her father held in contempt for his failure to comply with the post minority-educational-support provision of her par

Major constituents of smog

Emissions of nitrogen oxides, which are major constituents of smog, can be modeled using a normal distribution. Let x denote the amount of this pollutant emitted by a random

Conduct subordinate performance appraisals

Discuss why managers should conduct subordinate performance appraisals? Explain how a manager can set effective performance appraisal standards for employees. How should a m

Importance to the economic development of a nation

Economic progress within a country seems to depend on how well property rights are protected. Explain the relationship between property rights, corruption, and economic prog

Consider the sequential elimination rule

Consider the sequential elimination rule. Does this rule satisfy transitivity (i.e. is the social preference generated by this rule always transitive), Pareto, Independence

Education and training of the healthcare professional

Identify the education and training of the healthcare professional such as a Pediatrician What is the interface between this profession and other healthcare providers? Who mig

Government role in building businesses and creating jobs

You can watch the excerpt from the speech here: https://www.youtube.com/watch?v=YKjPI6no5ng In 250 words, is this an accurate statement? What is the government's role in bui

Cybersecurity reputation through addressing security flaws

Cloud computing providers have the ability to improve their cybersecurity reputation through addressing security flaws comprehensively in policy. Regardless of the organizat


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd