Once manning levels at the San Francisco facility are determined, Howell can determine which employees at the San Jose facility need to be retained. A collaborative approach is the best and most accurate way for Howell to make staff reduction decisions. However, mergers are often subject …show more content…
A generous early retirement arrangement that has proven to be successful is the “5-5’4” early retirement plan (Tomasko, 1991). The “5-5’4” plan adds five years to the employee’s current age, adds five years to the worker’s service time, and adds four weeks of pay for each year of service (Tomasko, 1991). Once the employee’s retirement benefit is calculated it is offered to the employee as a lump-sum payment (Tomasko, 1991). It is very likely that several employees at the San Jose, CA facility would be willing to accept a lump-sum early retirement. Voluntary separations through early-retirement payments will reduce the required 20% quota established by Howell and voluntary separations will allow D-Bart Industries to retain more employees who were hired recently. Howell should consider guidance from Luke 6:31 (ESV) which states, “And as you wish that others would do to you, do so to them.” The layoff decisions must be made using a fair and equal layoff criteria that does not allow for manager bias to influence the layoff