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Question: The management of Hershey Foods has asked union workers in two of their highest cost Pennsylvania plants to accept higher health insurance premiums and take a wage cut. The worker's portion of the insurance cost would double from 6% of the premium to 12%. In addition, workers hired after January 2000 would have their hourly wages cut by $4, which would be partially offset by a 2% annual raise. Management says that the plants need to be more cost competitive. The management has indicated that if the workers accept the proposal that the company would invest $30 million to modernize the plants and move future projects to the plants. Management, however, has refused to guarantee more work at the plants if the workers approve the proposal. If the workers reject the proposal, management implies that they would move future projects to other plants and that layoffs might be forthcoming. Do you consider management's actions ethical?

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Accounting Basics, Accounting

Category:- Accounting Basics
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