Discussion » Statements » Rosie's Corner » Does the new kid on the block have any responsibility to fulfill the promises made to employees by his/her predecessor? Why?
RosieG

Does the new kid on the block have any responsibility to fulfill the promises made to employees by his/her predecessor? Why?

Companies fold and are bought out. People move on to other jobs. Employees often stay and pray nothing significant will change. I know change will occur but should it always be at the expense of the employees? Should there be some change-sharing that goes on to give the employees some faith in their newly acquired company leaders or their new boss? I know bottom line profit matters to investors. But so too does being fair to the people there. Where is that line?

Posted - October 23, 2019
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Responses


  • 6023

    Sometimes.

    For example, where I work the union contracts specifically state that any new owner is obligated to follow the contract until it expires.  (3 year contracts)

    However, a new owner would be under no obligation for non-contract employees.

    If I were taking over a company, I would look at every person and job that isn't covered under a contract.  Especially if the company had been failing.  Maybe it's too "top heavy".  Maybe there wasn't enough "discipline" for rule violations.  Maybe there are jobs that could be automated or done more efficiently.

      October 23, 2019 2:43 PM MDT
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  • 113301
    Our son David(the one who passed away in May) worked for a company that had excellent insurance benefits. Beyond excellent. Superb. The company was bought out and the new bosses changed insurance plans to something lesser. He was fighting cancer for 5 years before he passed away and originally was at the Mayo Clinic in Phoenix. The new insurance plan caused him to have to change doctors and hospitals and not that there was anything bad or wrong but the Mayo Clinic is topline best and so I wonder what would have been if he could have just kept on with them? Then there were some changes in sick leave and vacation benefits and I think the pension plan. I don't know if they were Union or not. SIGH. Your points are valid Walt. The new owners are going to do that too and if they see something that needs changing to make things "better" for investors and the bottom line they will. I wish "better" could include employees too. Thank you for your reply and Happy Thursday! :)
      October 24, 2019 1:39 AM MDT
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