Eastern Talon Company Case Study

The purpose of this report is to put forth a recommendation for ETT about whether or not it should centralize its Long-Haul Operations Department. To do this the company must move its dispatchers from Laval, QC to its head office in Mississauga, ON. In addition to a financial cost and benefit analysis based on the relevant costs associated with the move (i.e. subleasing and layoffs), human resource issues that may arise given that the staff is unionized will be addressed.

Qualitative Analysis

Workforce and Layoff

The company is facing a big decision about its dispatchers. Relocating them to Mississauga will optimize the contact between them and accounting department, decreasing their communication time as they work on delivery logistics. However, ETT is aware that not all employees will be willing to move to Mississauga, and the company does not plan to take everybody to this new site because it will not be necessary given the increased efficiency.

It is not advantageous for ETT to lay off a high number of employees because they have to pay to employment insurance a substantial package per person laid off. On the other hand, the company has to offer some incentive in benefits and one-time bonuses, to encourage employees who have more seniority to accept this move. As senior Dispatchers have the option of displacing the junior Sales staff, by exercising this option, the company can try and minimize layoff maintaining good relations with the union. Although the company will incur high costs letting go off some employees and moving others to Mississauga, that amount can be recouped in a short period, as shown in the Quantitative Analysis. The company will also save the lease amount of one floor from moving some employees, and by subleasing, they can they can cover that amount without any loss to them financially.

ETT and Labour Relations

All employees are unionized in the company and their union takes strong action for them. So it is important for ETT to...