Case # 3 GOLDEN TAURUS GARMENT COMPANY

Golden Taurus is a garment company managed by a Taiwanese national. The company is

experiencing near bankruptcy because of the current strikes of its employee’ union. The
management attributes the current difficulty in the company’s financial condition to labour unrest.
Melissa Yu, the owner, has experienced being bullied and received several death threats.
Some of the issues raised by the employees against the management are the below
minimum wage salaries, series of unpaid SSS premiums, and delayed payment of salaries. Also,
employees do not get their 13th month pay even if the law entitles every employee regardless of
employment status. Also, employees are asked to sign a five-month contract, which excludes
them from getting the year-end bonus. Per company policy, only those employed with six-month
employment contract can get the year-end bonus.
Long working hours and less break time add to the complaints of the employees. Working
hours start at seven in the morning and end at six in the evening. Break time in the morning is
from 10 to 10:15 and none in the afternoon. Employees can eat their lunch between 12:45 and
1:00 which gives them only a 15 minute lunch break.
Employees are also concerned with violation of contract. Sewers are given quota which is
against the agreed per piece basis. They are also troubled with the poor working conditions and
the inadequate supply of water for their personal hygiene in the restroom.
Without the knowledge of employees, Golden Taurus filed a bankruptcy status, and later
operated under a new company name.
 VISAYAS STATE UNIVERSITY
INTEGRATED HIGH SCHOOL
COLLEGE OF EDUCATION
VISAYAS STATE UNIVERSITY
VISCA, BAYBAY CITY, LEYTE

Case Study # 3: GOLDEN TAURUS GARMENT COMPANY

Kyla Hazel M. Nuñez

12 - ABM

INTRODUCTION
 POINT OF VIEW:
The HR division or the Human Resource Management team's perspective dominates the
case. The organization's most significant asset is its workforce, and the human resources division
focuses on providing for them. Its obligations include boosting worker productivity and protecting
the company from any issues that might arise within the workforce. All of these duties fall under
the purview of human resources (HR), including compensation and benefits, hiring, keeping, and
firing staff as well as remaining informed about any rules that can affect the company and its
personnel.
DEFINITION OF THE PROBLEM:
A clothing company named Golden Taurus is experiencing financial problems, insolvency,
and employee unrest. Its employees' welfare and well-being have suffered as a result of the
company's acute financial instability, which is putting it at risk of bankruptcy. This has resulted in
employee grievances and labor unrest. The effects of strikes and labor unrest on the workforce
may have interrupted business operations and decreased productivity within them, which has
significantly worsened the company's financial problems. These delays in the output
manufacturing process will have a substantial impact on the company's revenue from its core
business operations.
OBJECTIVES
1. To find the cause of the existing problems.
2. To identify the moral problems that caused strikes and employee grievances.
3. Identify workable solutions that consider the health of the company and its people.
RELEVANT CASE FACTS
 Golden Taurus, a clothing business, is run by a Taiwanese national.
 Golden Taurus is in danger of going bankrupt as a result of the ongoing strikes by labor
unions.
 The management is currently having problems with the company's finances and labor
unrest.
 The management difficulties raised by the staff include paying employees less than the
minimum wage, failing to pay SSS premiums, disbursing salaries late, and failing to pay
staff members for the 13th month in a row.
 Employees put in a lot of time and get few breaks.
ALTERNATIVE CASES OF ACTIONS
SWOT ANALYSIS
Strengths Weaknesses Opportunities Threats

 Given that the  The Golden Taurus  Make  A negative

management Company is now investments public image
team manages coping with financial in workplace caused by
and maintains insecurity, difficulties, amenities to ethical issues,
the company's bankruptcy, create a safe unstable
workforce, the employeeun atmosphere finances, and
company is at happiness, and for workers. ineffective labor
least a unionized labor strikes.  HR management.
medium-sized Department  Due to
 business. Employee employee well-
Seminars & being issues,
Training Golden Taurus
may witness a
reduction in
personnel and
a decline in
production.

ALTERNATIVE CASES OF ACTIONS

• Enhance working conditions by remodeling outdated buildings and providing modern,
adequate, and sanitary facilities and supplies.
• To create a safe and just workplace, to maintain strict control over the contract
management team, and to encourage open communication and transparency of critical
information pertaining to the company's personnel.
• To ensure fairness and clarity while following to legal standards, the organization must
assess, modify, and reevaluate its personnel's wage and reward structure.
RECOMMENDATIONS
The management should make every effort to adhere to these rules, and it is highly advised
that they undergo leadership, management, business ethics, and ethics training. They should also
learn about the repercussions of breaching contracts, employment laws and regulations, and how
to encourage open communication and transparency. The company can guarantee that, if
addressed, these incredibly problematic issues would reduce and improve working circumstances.
CONCLUSION
The Golden Taurus Garment Company had various problems and declared bankruptcy as a
result of its unjust and unlawful treatment of its employees. The primary source of the problems is
the company's management of its personnel and human resources. Paying employees below the
minimum wage, failing to pay SSS premiums on time, delaying salary payment, limiting break time
and scheduling long workdays, creating bad working conditions, underpaying employees, and
even breaching contracts and employment regulations are all examples of violations. These issues
caused staff dissatisfaction and a strike. In this particular example, the ineffectiveness of HR
management abilities has been identified as the key root cause of the problem.

QUESTION GUIDELINES
QUESTIONS:
1. Does the company’s current financial condition justify the compensation given to the
employees? Explain.
No. Businesses with employees are required to give their wages and other financial claims
to them first in the event of bankruptcy or liquidation. As a result, it is now against the law for a
company with weak finances to underpay its staff. Furthermore, employees already exert a lot of
effort in the hopes of being paid. It will probably get more unpleasant in the near future since
employees might file a lawsuit against the company for failing to pay what is fair and acceptable
for the services they supplied. Physiological requirements, in accordance with Maslow's hierarchy
of needs, are the primary driver of human motivation. Employees become uncooperative if these
demands are not addressed, which aggravates the situation for all parties and is likely to lead to a
troublesome work environment.
2. Is it ethical to deny the employees the information about the company’s financial condition and
decisions?
Employees are still deemed to be a member of the business and have a right to know the
company's financial condition and actions, even though they are a trade secret. This knowledge
will help them understand why some of these financial challenges may not be handled. Even when
it wasn't always in their best interests, employees always had the option of staying or quitting.
3. Is it moral to let the employees sign a five-month contract instead of a six-month contract?
Before signing a contract, an employee should research and comprehend the ongoing
terms and conditions, and it is moral if they are not forced to do so. Because each employee has
distinct demands, any agreement a worker enters must at least partially justify or meet those
needs.