Question

Is overtime the right decision in this situation?

Quality Float Works of Schaumburg, Ill., laid off three employees in 2009 and put its remaining 18 on a four-day work week. Now (mid-2010), sales are surging for the company, which makes metal balls that businesses use to signal when water levels get too high or low in tanks and troughs. Customers depleted their inventories in the showdown and are panicked, says company President Sandra Westlund-Deenihan. She's giving workers up to nine hours of overtime weekly. Although she hired two staffers recently, she's holding off on further additions. Existing employees ''went through the hard times, and felt I owed it to them first'', she says. Some workers are going straight from part-time to overtime duty.

What are the ethical implications of the following interpretations?

1. This is a very fair arrangement-a classic case of ''share the pain, share the gain''. Besides, it gives Westlund-Deenihan some room to maneuver in case the economy softens again.

2. Bringing back all the laid-off employees (those who desired to return) for at least parttime work, before granting overtime to existing employees, would have better served the greater good. After all, the laid-off employees suffered the most.

3. In the spirit of employee empowerment and participative management, Westlund Deenihan should have polled the employees to see if a majority wanted to go the overtime route or first bring back all laid-off employees, and acted accordingly.

4. Your own ethical interpretation?

Answer 1

1. The concept of “share the pain, share the gain” is not an ethical decision. If one person suffers, it does not mean that the other person needs to suffer too. The action of Westlund-Deenihan is based on Deontological theory which means that the action is morally obligatory irrespective of the consequences of the well-being of others.
2. Yes, bringing back the laid off employees is a good suggestion. However, nothing can compensate their emotional sufferings. Though there is no guarantee that the laid off employees would not leave the company again, this is an ethical decision based on the Utilitarian theory wherein an action results in greatest good for a greatest number of people. In this case, the laid-off employees can be brought to work which would benefit all the employees.
3. This is a very wise and ethical decision. In the perspective of employee empowerment and participative management, Westlund Deenihan’s decision to seek employees’ opinions of overtime or bringing back the laid off employees would increase the morale of the employees. Employees’ participation in decision making makes them highly productive.
4. Personally speaking, I would prefer that Westlund Deenihan seek employees’ opinion before making a decision. It is pertinent that all the decisions of Westlund Deenihan are fair and just and transparent for the success of the company. If the employees feel that they are treated in an ethically unfair way, then it would be turmoil for the whole company.