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Jul 7, 2014

Who is the most affected when a company closes its operation?

Because of the unstable economic environment and automation/computerization of organization and production processes. It is very ordinary to hear business organizations in different industries fighting for survival. 

Thus, to be able to survive they reduce the working days and hours of their employees. This is a very valid strategy for survival. If this strategy will not pull them through to survive the organization would eventually have to face the sad reality that it needs to stop its operation.

 When this situation comes up it is not actually the business owners that is severely affected. For the reason that they still have other businesses to take care. Others have safe financial investments that earn for them interest that will keep them financially secure for the rest of their lives.

Who hurts the most when an organization brings to a close its operation? It’s the employees: not the top or middle level management but the first level ones and the operative or rank and file employees. In this case they are the most affected. And the irony of it all is they are mostly the ones who have the longest length of loyalty and service to the organization. And many of them are already middle aged and not anymore marketable for employment .

Loosing ones job is not a joke; it’s actually a big dilemma for those who will be affected especially if they have mouths to feed. So before the organization folds up labor laws will dictate them to properly compensate all those who would be laid off regardless of their standing in the organization.

Some compassionate organizations/owners even sponsor livelihood business training for their soon to be separated employees. So that they could stand on their own feet and start their own little businesses that hopefully they could grow so that it could sustain them.

If there’s a temptation for workers to go on strike to demand higher wages, workers and union leaders must weight upon it properly.  For it may result to their permanent displacement from their work. - Marino J. Dasmarinas

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