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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. Extract E The business failure of MG Rover Group MG Rover Group was the last UK-owned m... show full transcript
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 on VW
Answer
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VW is cutting 30,000 jobs due to the necessity of reducing costs resulting from a $15 billion fine associated with the emissions scandal. This could lead to significant redundancy costs.
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Creation of 9,000 new jobs could come with challenges related to recruitment and selection procedures that ensure compliance with equal opportunities legislation, which might develop issues related to accusations of discrimination.
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Increased operational costs due to compliance with employee legislation such as health and safety regulations, which necessitate ensuring safe working conditions within VW’s factories.
Step 2
Possible counterbalance to negative effects
Answer
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VW may have the opportunity to restore its reputation by being seen as a good employer, which could help attract better talent and enhance overall morale.
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By adhering to employee legislation and improving working conditions, VW may improve productivity and employee satisfaction, mitigating some of the potential negative aspects of high labour costs.
Step 3
Potential judgment of the overall impact of employee legislation
Answer
- In the long term, by complying with employee legislation, VW could potentially restore its reputation among employees and customers. This long-term investment in human resources may yield positive effects, ultimately benefiting VW's business structure and public image.