Employment at will doctrine refers to the presumption that work is for an indefinite period and may be canceled either by employer or employee at will, while just cause policy relates to the misconduct of an employee, or other events relevant to the employee, which justifies the immediate termination of the employment contract. The two differ in that employment at will requires no misconduct reason for job termination as compared to just cause where a misconduct warrants termination.
Downsizing is an emerging economic trend that refers to the discharge of employees in an attempt to cut down corporate costs and the discharged employees get rehired without fringe benefits or get other less remunerative jobs. Downsizing has been caused by corporate restructuring where employees are laid off to streamline and make corporations more efficient. Additionally, globalization has played a part in that white-collar jobs are outsourced from less expensive countries as compared to the costs of hiring American employees. The causes of downsizing are in somewhat inevitable since the difference in global economies plays a significant part, with some countries having cheaper labor as compared to the more industrialized ones.
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Downsizing is not an economic necessity since most of its impacts negatively affect the economy. Reduction leads to the fall of our social fabric in that it brings about economic fears, class tensions and social distress causing social instability. Levi Strauss decision to close the South Zarzamora plant brought about the increase of profit margins for the company. This is because, the high cost of labor and benefits of the employees would be foregone if the manufacturing moved to a country with a less robust economy, hence fewer production costs resulting to extremely high-profit margins. However, the closure resulted in the people of San Antonio being left jobless with no way of making end meet. The $6000 compensation was inadequate for the needs of the people.
The decision to close the plant was irrational and greedy since the company was after its self-interest of making more profits than the welfare of its over 1000 employees. On a social perspective, the decision was irresponsible since it disrupted the socio-economic status of the people. The company should undoubtedly have kept running since, despite the small profit margins, it was still managing to rake in profits and meet the costs of production.
