Recently the U.S. Congress pushed for legislation that would make it easier for workers to form unions.
Question:
Recently the U.S. Congress pushed for legislation that would make it easier for workers to form unions. The measure was strongly supported by the Teamsters, a powerful international labor union. Management at FedEx, a leading express delivery firm, contended that the new legislation would inflate its labor costs and make it vulnerable to strikes and disruptions in its global transport network. FedEx is a major aircraft buyer, and some suggested the firm might purchase more airplanes from lower-cost foreign suppliers if business expenses rose due to the proposed legislation. Unionization could also reduce FedEx’s ability to compete against top rivals DHL (Germany) and TNT (Netherlands). Meanwhile, labor unions in FedEx’s foreign markets are trying to unionize company workers. For example, Teamsters launched efforts to unionize FedEx workers in Canada. Is it acceptable for FedEx to prevent its workers from forming a union? What factors should management consider when determining the appropriateness and role of unions? To whom is FedEx most accountable—its employees or its shareholders (who expect FedEx to maximize profits)? Analyze this dilemma by using the Ethical Framework in Chapter 5.
Step by Step Answer:
International Business and the New Realities
ISBN: 978-0136090984
2nd Edition
Authors: S. Tamer Cavusgil, Gary Knight, John R. Riesenberger