Paper Topic:

cause and effect

The Problem of Worker Lay Off

The problem of worker lay off is gaining more importance recently as it affects a greater number of households . The issue is critical to many of the aspects in the national economy . It has a detrimental effect on families ' personal income and financial stability . Today 's situation on the labor market shows that numbers of downsized workers continue to increase . People lose their job without being able to return to their previous financial prosperity . Moreover , a great number of laid off workers (44 ) is currently unemployed

(Pohlmann

There are a number of reasons for the lay-off of workers , such as inventing new technology that is intended to replace human force , a cut down in demand , a decrease in budget , etc . A great number of people , who are working for manufacturing companies , continuously experience downsizing due to the companies ' production operation management strategies . Furthermore , there are many cases when a company 's decision about downsizing its employees is based on discrimination of sex , race nationality , and age

The end of 20th and the beginning of 21st century can be characterized by a huge advance in technology development . Consequently , with developing new , less costly ways to produce goods and services using new technology a great number of human labors become unnecessary . This fact explains the reason why roughly eighty percent of downsized workers are from manufacturing sector (Pohlmann . Strong competition forces organizations to improve their manufacturing processes in to yield higher productivity , lower recourses usage , less production time , etc This process often leads to replacing human labor and mechanization of production . The boom of such practice was noticed in 1995-1999 , and some minor waves were in 80s , early 90s and 2000s

Another reason for massive downsizing of employees is rapid decrease in a demand of particular product or service forcing the closedown of manufacturing firms , or when a product gets replaced by an alternative In such cases production lines discontinue their operations for a period of time incurring less losses than in the case of producing a good , or drop the entire manufacturing segment , which gives no chance for employees to be reemployed . In the case of fallen demand , consequences of the layoff are much more devastating compared to those caused by technology advance , companies ' strategies , sex and race discrimination If a product disappears from the market , workers cannot go elsewhere (firm-competitor , etc ) and offer their professional services , because there is no need in their skills

A less harmful practice in manufacturing industries , which causes workers layoffs is manufacturing strategy concentrated on exact production , which allows varying the workforce . In such cases changes in the beginning and ending inventory (raw materials and finished goods compared with forecasted demand and production requirement will result in multiple workers layoffs in different operating cycles . However , this practice gives about 60 percent chance for workers to be reemployed

Evidence shows that another cause of the layoff can be discrimination on the worker 's age , sex , race , and nationality . Although...

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