Golden Taurus is a garment company managed by a Taiwanese national. The company is experiencing near bankruptcy because of the current strikes of its employees’ union. The management attributes the current difficulty in the company’s financial condition to labor unrest. Eva Wu, the owner, has experienced being bullied and receives several death threats. Some of the issues raised by the employees against the management are the below minimum wage salaries, series of unpaid SSS premiums, and delayed payment of salaries. Also, employees do not get their 13th month pay even if the law entitles every employee regardless of employment status. Also, employees are asked to sign a 5-month contract, which excludes them from getting the year-end bonus. Per company policy, only those employed with 6-monts employment contract can get the year-end bonus. Long working hours and less break time add to the complaints of the employees. Working hours start at seven in the morning and end at six in the evening. Break time in the morning is from 10:00 to 10:15 and none in the afternoon. Employees can eat their lunch between 12:45 and 1:00 which gives them only a fifteen-minute lunch break. Employees are also concerned with the violation of contract. Sewers are given quota which is against the agreed per piece basis. They are also troubled with the poor working conditions and the inadequate supply of water for their personal hygiene in the restroom. Without the knowledge of employees, Golden Taurus filed a bankruptcy status, and later operated under a new company name. Questions: 1. Does the company’s current financial condition justify the compensation given to employees? Explain. 2. Is it ethical to deny the employees the information about the company’s financial conditions and decisions? If not, what is the ethical issue in this case?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Golden Taurus is a garment company managed by a Taiwanese national. The company is experiencing near bankruptcy because of the current strikes of its employees’ union. The management attributes the current difficulty in the company’s financial condition to labor unrest. Eva Wu, the owner, has experienced being bullied and receives several death threats. Some of the issues raised by the employees against the management are the below minimum wage salaries, series of unpaid SSS premiums, and delayed payment of salaries. Also, employees do not get their 13th month pay even if the law entitles every employee regardless of employment status. Also, employees are asked to sign a 5-month contract, which excludes them from getting the year-end bonus. Per company policy, only those employed with 6-monts employment contract can get the year-end bonus. Long working hours and less break time add to the complaints of the employees. Working hours start at seven in the morning and end at six in the evening. Break time in the morning is from 10:00 to 10:15 and none in the afternoon. Employees can eat their lunch between 12:45 and 1:00 which gives them only a fifteen-minute lunch break. Employees are also concerned with the violation of contract. Sewers are given quota which is against the agreed per piece basis. They are also troubled with the poor working conditions and the inadequate supply of water for their personal hygiene in the restroom. Without the knowledge of employees, Golden Taurus filed a bankruptcy status, and later operated under a new company name. Questions: 1. Does the company’s current financial condition justify the compensation given to employees? Explain. 2. Is it ethical to deny the employees the information about the company’s financial conditions and decisions? If not, what is the ethical issue in this case?

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