Section B: Argument mapping exercise (20%)

Question article :

1. Refer to the article below (Should American companies fire or furlough their staff during the coronavirus crisis?) and identify the key points for an argument map based on the argument. You must clearly identify four elements (contention, premise, objection and rebuttal). You should identify a minimum of 3 premises to support your contention. (15 marks)

2. Evaluate whether the arguments made in this article is strong or weak, and explain your reasoning using any two of Paul and Elders standards. (5 marks)

Should American companies fire or furlough their staff during the coronavirus crisis?

IN MID FEBRUARY, Hilton, a hotelier, and its employees had something to celebrate. For the second year running the company came top in Fortunemagazines list of best American companies to work for. A mere six weeks later, on March 26th, tens of thousands of those pampered employees were given notice that they would be thrown out of work because of the covid-19 pandemic.

The stratospheric surge of Americans seeking unemployment benefits contrasts with the situation in western Europe. Companies there are struggling just as hard but many are keeping workers on the books at reduced pay. That is a familiar story. In times of economic upheaval, European firms rely extensively on schemes in which the government picks up part of the wage bill. Traditionally, America has shunned such actions.

In the current crisis it may seem fair to ask American firms to take a more European approach.After all, business activity has collapsed not because of slothful work habits, but because governments have ordered people to stay at home. This is not a slump that needs to be fixedwith creative destruction in the jobs market. And however deep the downturn, the rebound could be relatively quick. If so, it makes sense for companies and employees to maintain ties,so that production can resume briskly when things improve.Yet one feature of this crisis in fact makes it all the more important to maintain flexible labourpractices: the jobs market has bifurcated. In industries that bring people together, such as hotels, airlines, casinos and restaurants, demand for workers has collapsed. Those that provide access to health care (such as hospitals), staples (supermarkets) or services catering to those stuck at home (e-commerce) are clamouring for more staff. For all the merits of Europes labour-support programmes, the risk is that they last too long and dissuade workers from switching to industries where their help is badly needed.

Already the response of American firms to the jobs crisis is taking an unfamiliar route. Though many of the small businesses that provide about half of private-sector employment in America were quickly forced to let workers go to survive, the government has stepped in to ease the pain. Its $2trn support programme has temporarily increased unemployment benefits. A $350bn lifeline to small businesses within the stimulus package encourages them to cling on to staff if they can.

Some bigger American firms, such as Hilton, its rivals like Hyatt and Marriott, and retailers such as Macys and Gap, are taking a different tack. Instead of sacking staff, they have announced that tens of thousands of their employees will be furloughed, which in Americameans being put on unpaid leave. Crucially, the furloughed workers get to keep their company health insurance. They can also, in most cases, claim unemployment benefits. It was also found that many American firms who laid off workers found subsequent rehiring very difficult.

Additionally, American firms are encouraging inactive workers to switch jobs to fill temporary vacancies in other industries. Hilton, for instance, is helping its suspended workers to apply for jobs at e-commerce firms like Amazon. This may help keep the labour market relatively fluid at a time of severe stress. As social-distancing measures recede, some of the diseasespecific demand for labour will ebb, enabling workers to return to their old jobs. This is where Europe could learn something from America. Some industries have far too many workers, whereas others do not have enough. Airline employees are needed to work in hospitals, and rural bar staff could helpfully be transitioned into farmwork amid a shortage of migrant labour. But European countries schemes for subsidising the wages of furloughed workers often do not make it easy for them to take new jobs, even temporarily, and sometimes discourage it.

Both American and European labour policies have their pros and cons. In America rapid shakeouts in jobs markets help good firms grow and bad firms shrink, promoting dynamism. In Europe worker protections can reduce the devastating toll on employees and their families caused by slumps, but can slow the pace of recovery. American left-wingers believe that mor European-style treatment of workers is long overdueand will cheer examples of companies volunteering to furlough workers rather than fire them. But if America and Europe want to ensure that hospitals are staffed, deliveries are made and food is on the table, they must remember that flexibility, as well as some security, is essential.

Answer :

	Provide your answers in the spaces provided below
B1	Argument Map Key Points (15 marks)
	Contention:
	Premise 1:
	Premise 2:
	Premise 3:
	Objection:
	Rebuttal:
B2	Evaluate whether the arguments made in this article is strong or weak, and explain your reasoning using any two of Paul and Elders standards (5 marks):