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Assess the likely effects of employee legislation on a business such as VW. - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2
Question 2
Assess the likely effects of employee legislation on a business such as VW.
Worked Solution & Example Answer:Assess the likely effects of employee legislation on a business such as VW. - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2
Step 1
Potential negative effects:
Answer
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VW is cutting 30,000 jobs as a result of having to reduce costs due to the $15 billion fine caused by the cheating emissions scandal. This may lead to significant redundancy costs.
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VW is creating 9,000 new jobs as it shifts to self-driving cars. However, it will need to ensure that it implements correct recruitment and selection procedures in order to avoid being accused of discrimination. This may make the hiring process more complicated.
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Increased costs of complying with legislation such as health and safety may arise, as VW must ensure safe working conditions in its factories.
Step 2
Possible counterbalance:
Answer
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VW may be able to restore its reputation by being seen as a good employer, which could enhance its brand value and attract better quality candidates for vacancies.
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By complying with health and safety legislation, VW may improve working conditions, which can lead to higher employee morale and retention.
Step 3
Potential judgement:
Answer
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In the long term, by complying with legislation, VW may gain positive effects, enabling it to restore its reputation with both employees and customers.
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A careful evaluation of the impacts suggests that while there are initial costs in compliance, the long-term benefits may outweigh these costs.