Due to the continued downward spiral of the economy many large companies and corporations are being forced to implement layoffs, salary reductions, and outsourcing to different countries. Companies are faced with ethical dilemmas of losing loyal workers or preserving the company. Whirlpool Corporation, the home appliance manufacturer, was not exempt. Similar to Global Communications, Whirlpool Co. was forced to layoff its workers in efforts to reduce costs. The company implemented 4,500 layoffs in North America and the closing of three factories and several home offices. Approximately, included in the 4,500 layoffs, 1,500 salaried positions were eliminated. But unlike Global Communications, Whirlpool would introduce about 1,500 new positions at other locations thus only really eliminating 3,000 jobs (Smith, (2006), p.1). The company also instituted a volunteer program where people willingly volunteered to be laid off. Those who had seniority were awarded being first choice. The benefits of complying with the eight week layoff were: continued health benefits and the ability to collect unemployment. They were also eligible to be hired back if they were needed and the demand was high enough for their services. Whirlpool was said to be implementing these changes to remain relevant in the global home appliance industry and to “restore competitiveness” of the brand (4029tv.com, (2006).
Also comparable to Global Communications the company had stirred tensions with the worker’s union. In June 2004, Whirlpool Co. laid off several workers after a three-week strike. The Workers Union worked to change the policies of a four-year-agreement. After they made their changes Whirlpool fired over one third of the workers stating that they were “non-reinstated strikers”. This was done t ...