Human Resources - Labor Laws and Unions Essay Example | Topics and Well Written Essays - 750 words

Human Resources - Labor Laws and Unions - Essay Example It is vital to note that the company has its operations in more than 150 countries with 30 of the same as production bases. GM Company produces such vehicles as Cadillac, Chevrolet, Vauxhall, Opel, Holden and GMC (Cooke, 2003). It is vital to note that GM Company benefitted from chapter 11 Reorganization of 2009. This was a response by shareholders, in Asia and Europe, since they could not access their assets. The reorganization was possible through IPO shares. The government reduced its stake to 26 percent of the same. GM Company falls under the UAW union. This is a union that possesses the mandate of protecting workers from Puerto Rico and the USA. These workers are occupied in notable industries such as automobiles, health and educational sectors. Protecting civil rights and anti-communist movements has a long history. There are notable legal issues that this company may face in different scenarios. In this case, the company might face problems during bankruptcy. This may concern a court action by retired employees to demand payments. The belief in progress of such companies places the same in vulnerable financial situation of not paying their retired employees. In close relation to the same, the company faces legal issues in the case of laying off employees. In such cases, employees might demand reinstatement or better package for retrenchment. It is vital to note that the GM Company faces the legal obligation of awarding a pension plan to each of its employees. This depends on profits as the company progresses. In addition, GM Company faces legal challenges of paying health care obligation to each worker per every vehicle it produces. This does not allow for expansion of profits since the pay rises with sales. In case of breach, this law would break the federal law of PPACA that requires health care obligation to each individual. Avoidance of litigation pertains to having a well