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PPG Milk currently has an in-house permanent cleaning staff of 50 people - HSC - SSCE Business Studies - Question 25 - 2004 - Paper 1
Question 25
PPG Milk currently has an in-house permanent cleaning staff of 50 people. To reduce operating costs, PPG has decided to terminate the services of the cleaning staff ... show full transcript
Worked Solution & Example Answer:PPG Milk currently has an in-house permanent cleaning staff of 50 people - HSC - SSCE Business Studies - Question 25 - 2004 - Paper 1
Step 1
Identify ONE overt and ONE covert type of industrial action that the cleaning staff might have taken (i) Overt:
Answer
An example of overt industrial action that the cleaning staff might have taken is a strike. This means that the employees have publicly withdrawn their labor as a protest against PPG's decision to outsource their roles.
Step 2
Identify ONE overt and ONE covert type of industrial action that the cleaning staff might have taken (ii) Covert:
Answer
An example of covert industrial action could be working to rule. In this scenario, the cleaning staff would strictly adhere to the minimum terms of their contract, deliberately slowing down operations without openly protesting.
Step 3
Discuss ONE cost OR benefit associated with industrial action taken by the cleaning staff.
Answer
One major cost associated with the industrial action taken by the cleaning staff is the potential financial loss for PPG Milk. When employees go on strike, the company faces disruption in operations, which may lead to a decrease in productivity and sales, negatively impacting their overall profitability. Additionally, the negative media attention could damage PPG’s reputation, making it harder to attract and retain customers.