Readthe Case Scenario

JoshGarrett is Head of Packaging and Distribution at Biotech Health and LifeProducts (Biotech). Josh is in charge of all of the branches the companyhas throughout the world.

Joshhas been reviewing cost reports for the different branches. He isconcerned with some of the results. His main concern is with the risingcosts of unskilled labor at the Germany branch. Many of the employees inthe Packaging Department are classified as unskilled laborers making minimumwage. Josh decided to research the matter further and found that thecurrent US federal minimum wage is $7.25 per hour, which has not changed since2009. Interestingly, the German government recently raised its minimumhourly wage by 4% to 8.84 euros per hour ($9.79 – USD). This informationweighs heavily on Josh since another raise would be costly for thecompany.

Addingto the concern about the increase in unskilled labor costs is that distributioncosts between Europe and North America have risen considerably. Theshipping crisis of 2016 has caused cargo costs to rise for all transatlanticroutes and with the demise of the low-cost flight service of Air Berlin, costin Germany have increased.

Joshis a great outdoorsman and loves Iceland. It occurred to Josh thatrelocating the majority of the Packaging and Distribution Department fromGermany to Iceland and setting up a distribution center would solve theseproblems because production and distribution costs would be lower inIceland. Iceland is the halfway point in the transatlantic route.The new location would eliminate the need to ship long-distance hauls.Josh also knows that Iceland is one of the poorest countries in Europe so ifpart of the business is moved to Iceland, he will receive the credit for jobcreation in the country.

Joshdecided to research Iceland as a potential location. His researchshowed:

·All professions areexempt from minimum wage;

·Salaries are determinedby collective bargaining agreements with most professions paying 260,000 and300,00 ISK or $2,600 – $3,000 a month;

·Salaries are higher dueto contributions to universal health care coverage;

·The cost of living ishigher than many other European countries;

· The average wagein Iceland is approximately $3160 before taxes per month for a full-timeworker;

·Income tax is 37.3percent for most people. However, income tax is higher for those workerswho earn higher wages.

Joshhad not expected the higher salary base but further research showed that Joshcould improve the rate considerably by hiring young people between the ages of15 and 18 who could work up to 40 hours a week since mandatory schooling endedat age 16. Josh believed he could negotiate a much lower salary.

Iceland’steenage unemployment is higher than the country’s overall unemployment.Hourly costs are quite a bit higher than in the United States and slightlyhigher than in Germany. However, Josh believes the change in logisticswill cut distribution costs in the Canadian and Germany branches, and will morethan make up for increase in labor cost.

Joshalso has a desire to help the young people of Iceland. He believes he isbeing socially responsible in cultivating one of the poorest European countriesand its low wage earners.

Joshdecides to go ahead and move most of the German production and distributionbusiness to Iceland as well as open a new distribution center. In movingto Iceland, Josh decides to exclusively staff young workers and let the workersgo before they reached the age of 19 prior to the time when the worker’scontract had to be renegotiated.

InIceland, employees fall within one of two classification, young workers andadults.

Ayoung worker is anyone under the age of 24. An adult is a worker over24.

Youngworkers include youth, children and adolescent workers.

·Youth are those under 18years of age.

·A child is an individualunder the age of 15 and still in compulsory school.

·An adolescent is anindividual under the age of 15 but not in compulsory school.

Youngworkers are subject to restrictions dependent upon the type of work, the workenvironment and times worked.

Youthunemployment tends to be extremely high. Youth can only work part-timesince a person must be 18 years of age to work full-time.

Josh’splan came under dispute when two recent lay-offs brought his employmentpractice to the attention of the staff who believed that Josh’s employmentpractices were unethical. The workers feel Josh is trying to use thesystem to avoid paying workers a fair wage and stopping workers from gainingfull-time employment since after the age of 18, a worker’s contract must berenegotiated.

Ifthe matter is not quickly settled, the workers will go to the Collective to askfor higher wages and request a guarantee of full-time employment when theyreach the age of 19.

Theworkers have also questioned the company’s policy of paying different wages forthe same job in different worldwide locations.

Thecompany has always had a policy of ensuring fair wages dependent upon thecountry in which the company operates. However, if workers go to theCollective, the company will have to pay more money than is reasonable forunskilled labor costs, and will compromise the move to Iceland. Joshknows the higher labor cost will negatively affect the companyfinancially. Added to his concerns is that he knows that unskilledworkers within Biotech make different wage amounts, especially in Germany, Mexicoand the United States. In these locations, wages are much lower.Josh thought to himself, “is it fair that the workers in other countries aremaking so much less than the workers in Iceland?”

Step1: Write the Introduction

Create the introductoryparagraph. The introductory paragraph is the first paragraph of thepaper and tells a reader the main points covered in the paper. To helpyou know how to write an introduction, view this website to learn how to writean introductory paragraph: http://www.writing.ucsb.edu/faculty/donelan/intro….

Step 2: Answer the following

AssumeJosh’s employment practices are unethical.

·Explain the meaning of an ethical issue;

·Identify and explain the ethical issue inthe case scenario using the course material to support the reasoning andconclusions made;

·Identify the one ethical issue in the casescenario that is irrelevant to the case scenario. Explain why.

·Identify and explain the ethicaldilemma. Use the course material to support the reasoning and conclusionsmade;

·Define ethical relativism and moraluniversalism;

·Does this case scenario illustrate ethicalrelativism or moral universalism? Explain why or why not.