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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 of employee legislation
Answer
VW is likely to face significant challenges due to employee legislation. Firstly, cutting 30,000 jobs might lead to allegations of non-compliance with employment laws, particularly regarding redundancy and fair treatment. The recent $15 billion fine from the emissions scandal may force VW to make tough decisions to reduce costs, potentially hindering their ability to comply fully with legislation related to job security.
Moreover, as VW creates 9,000 new jobs for its shift to self-driving cars, they need to be vigilant against recruitment practices that could be viewed as discriminatory. Implementing robust hiring procedures to avoid such allegations will require additional resources, potentially increasing operational costs.
Lastly, compliance with health and safety legislation can impose higher operational costs for VW, as it will necessitate regular audits and improvements to working conditions in their factories.
Step 2
Possible counterbalance to challenges
Answer
On a more positive note, VW could leverage employee legislation to restore its reputation as a good employer. By adhering to laws about equal opportunities and health and safety, VW has the potential to create a workplace that attracts top talent.
Furthermore, effective management of these legal requirements could place VW in a better position in the job market, as candidates may prefer companies demonstrating compliance with relevant legislation. The positive reputation may also help drive customer loyalty and assist in restoring VW's image.
Step 3
Potential judgement on overall impact
Answer
In the long term, despite the immediate challenges employee legislation brings, VW could benefit significantly. By strategically implementing these laws, they can not only enhance their internal culture but also restore credibility with customers and stakeholders. Thus, while the legislation poses threats, it may also provide essential opportunities for VW to innovate and improve.