employment issuse .docx - RUNNING HEADER EMPLOYMENT ISSUES...

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RUNNING HEADER: EMPLOYMENT ISSUES 1 Project 5: Employment Issues Report Team 3 Group Project MBA 630 Leading in the Multicultural Global Environment
EMPLOYMENT ISSUES 2 Employment Issues Report Introduction Colossal Corporation operates as a parent company for many different entities. Some of these companies operate within the United States which makes local law clear but other organizations operate internationally. These international companies must operate with ethical standards according to the United States but need to also ensure compliance with local laws. New Brand Design, Inc. (NBD) is a company under Colossal Corporation that is incorporated out of state of Delaware but operates in Serafini which is a small country in Eastern Europe. New Brand Design, Inc. has an executive board comprised of ten total board members. Six are in the United States, one in Italy, and three are in Serafini. The ten board members manage over 100 employees who are all nationals of Serafini. The company designs, brands, and creates electronic products, markets, and then distributes them for sale across the world. Two of the local Serafini executives, Elena and Viktor have lodged formal complaints with the human resources director over the discrepancy in their salaries as well as benefit packages compared to other board members. The United States operations division of NBD decided to send out two more board members from the United States on five-year contracts to replace Elena and Viktor. The two that are being sent to Serafini are Michael and Beth. Michael is a 66-year-old and Beth is a 42-year-old NBD has applied for visas and work permits for Michael and Beth, as required under Serafini law. Serafini is not a democracy, has no equal-pay laws, and has a law requiring all to retire at 65. The reason for forced retirement is so that the younger workers can find jobs. Being as Michael is above the retirement age, the labor office of Serafini is refusing to grant Michael a
EMPLOYMENT ISSUES 3 work permit. The labor office of Serafini has also denied Beth a work permit for an unofficial discrimination prohibiting women from taking management positions in Serafini. The local laws are inhibiting NBD from operating as it would prefer to operate. Because of the hold-up with the permits, no action has yet been taken to terminate Elena or Viktor, and Max is consulting with US operations about what he can do legally and ethically to resolve these issues.

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