Labor Issues as a Supply Chain Risk Factor.

Why is this a risk?

The stance of the provided article highlights that when a workplace is unionized, it becomes difficult to adjust employee contracts as and when required. This implied inflexibility can pose significant challenges for manufacturing companies. An example might be laying off employees, which may prove tough during periods of low customer demand or when relocating assets. This could lead to increased costs due to maintaining excess labor, reduced agility in responding to market changes, and potential delays in operational adjustments. The article also mentions that adequate training must be given to employees to maximize productivity and reduce risks, implying that a lack of proper training can also contribute to labor$-$related risks.

How to mitigate this risk?

Proactive Planning and Communication: Managers should engage in robust workforce planning to anticipate labor needs and potential surpluses or deficits, complemented by clear communication and strong contracts $($where applicable$)$ to establish well$-$defined agreements and address potential issues before they escalate.

Employee Training and Development: Providing adequate training to employees is crucial for maximizing productivity, reducing errors, and enhancing adaptability, while also exploring flexible work arrangements to increase organizational agility.

Ethical Labor Practices and Management Systems: Implementing comprehensive labor management systems, as highlighted by the U$.$S$.$ Department of Labor's ILAB Management Systems Framework, involves a commitment to identifying, preventing, monitoring, and remediating labor risks through fair practices, compliance with regulations, and effective grievance mechanisms.