The Two-Tier Labor System – Case Study Example

The Two-Tier Labor System of the Business of the Concerned March 25, The Two-Tier Labor System Kellogg’s intends toset up a two tier labor system at its Memphis plant at which the company intends to extend dissimilar and disparate remuneration and incentives to different employees doing the same job. This approach has an ethical lacuna in the sense that it extends lesser wages and fewer or no incentives to employees who are doing the same job as their counterparts at the plant, who are paid higher wages and have access to varied types of incentives. The central ethical issue here is that this approach compromises the sense of dignity of the employees receiving lesser wages irrespective of putting in similar hard work as their counterparts at the plant who receive a better remuneration as compared to them.
This strategy on the part of Kellogg’s is fraught with serious consequences as it will not only set the employees at the plant against each other, leading to unnecessary negative politics, dissension and grudge, but this approach is also poised to flare up the employees’ resentment against the management. This will also dilute the employees’ commitment, sincerity and motivation and will augment the turnover rate.
The company does need to correct this wrong at the earliest possible. Instead of pursuing such a divisive policy, the company should treat employees as an integral aspect of the organization and must adhere to a remuneration policy based on the sharing of the eventual awards and the losses. Thereby, the company can choose to shrink the wages of all the workers deployed at the plant on a uniform basis, to tide over the difficult times, instead of creating two different categories of workers receiving different wages for the similar work.