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orn correctly pointed, reducing the work hours amounts to a 25% pay cut across the board and this will only result in poor quality of their products since the employees will be more pre-occupied with getting part time jobs.

Max Derick proposed the third strategy which is to move the equipment to Mexico since the costs of relocating them to Kansas is the same. After relocating the equipment to Mexico, they will use Jenny's approach which is to identify key skills, cut the rest of poor-performing staff and re-staff in Mexico. Max Thorn however countered that the move is not a good idea because the company has no experience in manufacturing in Mexico. Furthermore, there is no certainty whether the managers in the manufacturing division speak Spanish or are willing to relocate to Mexico.

In all three approaches, the underlying consideration for Midwest is to reduce costs. However, it should be noted that the primary aim of the manufacturing division is innovation and not cost reduction. Thus, in deciding where to relocate the equipment and which staff to retain, the management main concern is to enhance the innovative aspect of their business and products. Arguably, all the three approaches have a common negative aspect which is mainly focused on the tenure of its employees.

In the first approach, older employees will suffer the most because they have higher medical expenses and pensions. However, as Max Thorn stated, to terminate employees on the basis of their age would amount to prohibited employment practice and they could face various lawsuits in the process. In the second approach, while the existing staff will be allowed to keep their jobs, they will in turn be forced to seek part time employment as a result of the reduction of work hours. This is also reflect poorly in the quality of the products produced since employees will be more concerned with maintaining additional jobs in order to support their families.

In the third approach which integrates the first approach, both the employees and the managers of the division will be affected by the relocation of the equipment to Mexico. Not only are old employees in fear of losing their jobs, managers are also force relocate to a place which they are not familiar of.

In my opinion, all three approaches are not in keeping with the primary aim of the manufacturing division and as such, they should not be implemented. The senior managers have to adopt a new strategy which is fair to its existing employees and in line with the vision of the manufacturing division. I would suggest that Midwest keep all of its existing manufacturing division staff in Kansas and offer relocation to qualified ETA staff who will train those in the Midwest on how to operate the equipment formerly owned by ETA. For those who will not qualify for the position available in the manufacturing division of Midwest or are unwilling to relocate, the company should be willing to pay for their unemployment expenses as mandated under the law.

Since the Midwest Education is the acquiring company, its employees should be afforded the preferential benefits in terms of security of tenure because they are the original employees of the company as opposed to the ETA staff who are considered as new employees. Furthermore, since the equipment are to be transported to Kansas, it is more practical to retain the employees already working in the divi