Read the “Employee Raiding” critical incident following the end
of Chapter 3.
How would you prepare for the meeting? Provide a detailed
explanation that demonstrates clear, insightful critical
What would you say at the meeting? What recommendations would
you make? Provide a detailed explanation for your recommendations
that demonstrates clear, insightful critical thinking.
Your initial response should be 200 to 300 words in length,
include two academic resources that are properly cited (APA)
The Litson Cotton Yarn Manufacturing Company, located in Murray,
New Jersey, decided, as a result of increasing labor costs, to
relocate their plant in Fairlee, a southern community of 4,200.
Plant construction was started, and a personnel office was opened
in the State Employment Office, located in Fairlee.
Because of poor personnel practices in the other three textile
mills located within a 50-mile radius of Fairlee, the Litson
Company found it was receiving applications from some of the most
highly skilled and best trained textile operators in the state.
After receiving applications from approximately 500 people,
employment was offered to 260 male and female applicants. It was
decided that these employees would be placed immediately on the
payroll with instructions to await final installation of machinery
expected within the following six weeks.
The managers of the three other textile companies, faced with
resignations from their most efficient and best-trained employees,
approached the Litson managers with the complaint that their labor
force was being “raided.” They registered a strong protest to cease
such practices and demanded an immediate cancellation of the
employment of 260 people hired by Litson.
The Litson managers discussed the ethical and moral
considerations involved in offering employment to the 260 people.
It was clear that Litson faced a tight labor market in Fairlee, and
the Litson management thought that if the 260 employees were
discharged, the company faced cancellation of their plans and large
construction losses. It was felt, in addition, that the Litson
management was obligated to the 260 employees who had resigned
their previous employment in favor of Litson.
The dilemma facing Litson managers was compounded when the
manager of one community plant reminded Litson that his plant was
part of a nationwide chain supplied with cotton yarn from Litson.
It was inferred that attempts to continue operations in Fairlee by
Litson could result in cancellation of orders and a possible loss
to Litson of an approximate 18-percent market share. It was also
suggested to Litson managers that action taken by the nationwide
textile chain could result in cancellation of orders from other
textile companies friendly to them. The Litson president held an
urgent meeting of his top subordinates to: (1) decide what to do
about the situation in Fairlee, (2) formulate a written policy
statement indicating Litson’s position regarding employee raiding,
and (3) develop a plan for implementing the policy.