Workforce and Corporate Replacements 2

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Workforce and Corporate Replacements Part 2

Two of the examples of companies that have rapidly replaced an integral individual or a large workforce were American Crystal and Cooper Wire.


  • It was reported that the company had hired 900 replacement workers, temporarily due to lockouts.
  • The employee union was locked out due to contract negotiation, forcing them to agree in higher for payments for health coverage, outsourcing, and concessions.
  • There were 1,300 employees affected by the lockout.
  • According to Federal Law, temporary workforce replacement is allowed, but they cannot permanently replace the regular employees.
  • An employee of American Crystal said that the company was still pushing the barriers to settlement, pressing them to surrender to the contract.
  • 33,000 employees signed the petition for the workforce replacement case filed by American Crystal and Cooper Tire joined the workforce rally.

Cooper Tire

  • Cooper Tire failed to observe the Federal Law when they imported temporary replacement workforce like what American Crystal did to its employees.
  • The cause of this action was employee lockouts because of the wage and benefit cuts instead of wage and benefits negotiation.
  • The United Steelworkers filed a charge against Cooper Wire for labor malpractice declaring that the lockout done to the union was illegal.
  • There were 1,050 workers of Cooper Tire who were involved in the lockout.

Helpful findings

federal law governing workforce replacement

  • According to the National Labor Relations Board (NLRB), employers cannot permanently replace employees who are engaged in a strike.
  • United States law only permits a company to hire permanent replacement workers if and only if there is an economic strike or a strike over wages. For example, if an employee union calls for a strike because of a wage increase, a permanent employee replacement is restricted. However, if the employee union calls for a strike because of an excessive and above market minimum wage increase, a company can hire temporary replacement workers who will be willing to work for a lower wage.
  • The law prohibits employees from getting new employees when their current employees are engaged in lockouts and strikes since these are protected by the law.

Research Strategy:

We were unable to find the rest of the examples of companies that have rapidly replaced an integral individual or a large workforce but we have provided at least two examples of workforce replacement and helpful findings of Federal Law governing workforce replacement in the United States

Strategy #1

  • Our first strategy was to search for precompiled information on the other examples and case studies about examples of companies that have rapidly replaced an integral individual or a large workforce, following the specified research criteria given. We searched through articles, news reports, a case study conducted, etc. We were hoping to find a headline where there is a reported company who replaced their workforce for a certain reason. However, we were trying to avoid the word "fired" as they mean that there was no replacement done. We searched through Forbes, US News, CNBC, Business Wire, etc. but the results did not yield any relevant data for the study. We were only able to locate data about the law governing labor force in the United States. We were expecting that this article and news reports containing law governing labor workforce replacement in the United States would provide examples of cases in the past years connected to workforce replacement, but we did not find any. As such, we did not include it in our key findings for it does not answer the client's question.

Strategy #2

  • Secondly, we tried searching for different grounds why a company replaces their workforce and based on that, we could search each of them specifically and this would provide us with examples of the companies who did workforce replacement. We were hoping to find at least one example or case study about the grounds for workforce replacement. We searched through the United States Department of Labor for the law and regulation followed by companies during workforce replacement. Results of our searches were mostly about the benefit and wages or how much it cost for a company to replace a workforce and what possible charges or violation they may encounter with the Federal Law. There was no data for the grounds except for the IBM company who did layoff to their employees. This layoff was suspected to be the company's way of replacing the old workforce with the younger ones. As such, we did not include the company in our helpful findings because it is not connected with the grounds why a company replaces its workforce since in this case, it seems the employees were being fired.

Strategy #3

  • Lastly, since workforce replacements result to some lawsuits, we tried searching for law cases where there had been a company that was charged for illegal workforce replacement based on the Federal Law being in favor with the employee unions. Our assumption was that we could locate data for some law cases in the United States involving companies for the past 10-20 years by focusing on data-specific sources. These results would then give us lawsuits specifically for workforce replacement. Through the course of searches, it gave us lawsuits connected with layoffs, turnovers, and strikes of companies' versus employee union but there was no information on companies that have rapidly replaced an integral individual or a large workforce. As such, we did not include these results in our key findings.
We are, therefore, presenting this as a partial client update since we were able to only provide two examples of large workforce replacements in the past ten years. We have also provided information detailing Federal regulations regarding workforce replacements.