Taken from: XXXXX of Entrepreneurship, 9(1), 1-2
Language: English
Date: 2007

Owens Saw Mill has the opportunity to buy a new saw that will reduce their labor cost by 50%. They will also have to lay off half of their employees as the new saw is highly efficient and can perform the work of several employees. The social delimma they face is that the laid off workers will find it difficult to find another job in the small community. The company must decide if they should keep the employees or buy the new saw that will increase profits and allow the mill to stay competitive. While there will be some damage to their goodwill by switching to the use of the new saw the company should go ahead and do so as they have no choice to do so if they want to compete on price with other mills. The company should give the workers plenty of time to find another job and also help them with assistance in retraining them for other vocations. As long as the employees feel the company is doing their best and that they must make the change to save the mill they will understand and hopefully not harbor ill-feelings toward the company on a permanent basis. Also, providing the workers with an equitable separation package will also alleviate some of the pain of losing one's job.