American Auto Corp is a multinational of automobile manufacturers established in Detroit, MI. Most American and Japanese countries establish factories in Mexico due to availability of cheap labor and high skill that steer production. Mexico plays an important role in America’s global strategy. American firms rely on the Mexican factories due to availability of raw materials such as copper and lead. Consequently, the North American Free Trade Agreement (NAFTA) allows access to the North American markets to ensure increased productivity. The Mexican factories have received a recommendation because of the improved quality of products they manufacture. The Mexican workers have the capacity to manufacture products in line with the current demands in the market. The issue lies with the working conditions in Mexico.
Analysis and Evaluation
The American Auto Corp is yet to install air-conditioning equipment as a safety health measure for the Mexican workers. The Mexican workers experience poor working conditions. The Jalisco plant has a presence of air and water pollution due to smog. Workers in this area suffer severe respiratory diseases and nausea. The factory dumps its waste in the river making it unsafe for drinking. Factories experience high absenteeism given the problems experienced by the workers.
Alternatives
American Auto Corp has two alternatives to select. First, the multinational can opt to fix air conditioner to provide workers with good atmosphere for working. The advantage of this method is that incidences of respiratory diseases will reduce. The disadvantage of this method is its expensive nature of installing an air conditioner.
The second option entails American Auto Corp financing the connection of the factory to the city waste treatment center. Adopting this plan will ensure that drinking water is no longer contaminated and the natives have safe water for drinking. The disadvantage of this method is its expensive nature to the company.
Plan of Action
American Auto Corps should choose the second option. The management of American Auto corps must arrange for a meeting between them and the union at the plant in Jalisco. Once the union members agree for a meeting, the management has to elaborate to address the non-remunerative demand by upgrading the facility to handle waste. In the course of meeting, the American Auto Corp management must discuss more information concerning the issue and set a date to initiate the waste treatment facility.
