Question

Andrew is an employee of Acme Safe Company. He was discharged for what management says was 'just cause', and the union contends that he was fired because he is over 50 years old, and the company is slowly working to get rid of all the 'old folks' to avoid high medical insurance costs. One factor important to both management and the union is the value of the job, because if Andrew is found to have been discharged wrongfully, he would be able to recover damages from Acme. The damages would possibly be the value of the job.

Andrew's job pays $50,000 per year, and he works 40 hours per week for 50 weeks per year. If he loses his job, Andrew would easily be able to get a job at any fast-food restaurant that pays $8.00 per hour, with 40 hours per week and 50 weeks per year. The local expected return on investment relevant here is 10%.

What is the value of Andrew's job?

	A.	$50,000
	B.	$440,000
	C.	$340,000
	D.	There is no way to calculate the value of the job.

Answer 1

D. There is no way to calculate the value of the job.

The value of the job actually depends on various factors and parameters and just the pay will not help in calculating the value of the job.