Essay Sample on Labor Relations Recommendations

Introduction

The United States Steel Corporation, known usually as U.S. Steel, is an American unified steel manufacturer. Presently, it is headquartered in Pittsburgh, Pennsylvania and runs manufacturing operations in Central Europe and North America (USSteel.com, 2018). For this assignment, we will compare data between the U.S., Mexico, China, and Japan to determine the best-suited area for the next endorsed manufacturing plant.

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Some of the critical factors to think through when deciding on setting for a manufacturing plant are available workers, economic conditions, available resources, and lastly, cost of labor (Biggens Lacy Shaprio & Co. LLC, 2015).

(International Labor Organization. 2018.).

From the table above, there are many things to consider when considering a location. The cost of monthly earning to the company is quite similar between Mexico and China. Also, China has a higher participation rate as well as high working time and employment rate. All of these factors would mean more for manufacture for United States Steel Corporation.

Through reducing the cost of the manufacturing and processing of U.S. Steel products, the company can allocate resources efficiently and focus on other aspects like marketing or creating more revenue for the company. In redistributing some of the work for the company, they can also take onboard more projects and complete more tasks in the United States. The cost of keeping manufacturing in the U.S. would be expensive to the company while developing the manufacturing plant in China would reduce the financial hit the company would bear.

Based on the information currently provided, it would be my endorsement to decide on China as the next location for a manufacturing plant. Additionally, China has the highest working force and working hours, and a lower cost for labor. From my point of view, I feel the company would get the most production for the least amount of financial duty. China also has about 67.1% of the adult population having a higher education. This would bring a larger pool of skilled persons to the organization (International Labor Organization. 2018.). Also, the working hours are the highest in China, thus meaning more potential for achieving the company's objectives. As a final point, China has an average of 47 hours per week, compared to Mexico at 46 and USA at 39.

Outsourcing can reduce costs significantly; it allows companies to compete with superior firms. Some of the initial steps Human Resource departments when exploring a new location are as follows - Selecting potential regions, setting objectives, identifying potential partners, assessing those partners, checking working conditions, discussing requirements, and negotiating terms (Linton, 2018.).

Operating globally brings on a complete new set of laws and regulations for an establishment. Consequently, Human Resources Departments needs to be robust and well-informed. Since U.S. Steel already manufactures internationally, the Human Resources department should be at ease exploring the plans of a new location. They need to guarantee the company that all laws are being followed, as well as draw up applicable employee contracts for the new location (International Labor Organization, 2018). Also, the Human Resources department will need to be well fortified to hypothetically negotiate agreements with any outside enterprises they may require to utilize in developing the new manufacturing plant and to hire new employees.

While the information provided is an excellent start to deciding on a new location for a manufacturing plant, there are many more factors to consider to ensure a well-informed decision. To guide the process, the following list includes more criteria point to consider: Inbound shipments: modes of transportation, raw material resources, Outbound shipments: modes of transportation, customers, labor requirements: wages, benefits, schedules, Building requirements: size, configuration, docks, needs, site requirements: size, storage, configuration, Gas/Water/Waste requirements, Telecommunication requirements, Project Investment: startup costs, Incentives, and finally, Timelines (International Labor Organization, 2018).

Conclusion

In conclusion, the data provided shows China as the next best location to consider for the manufacturing plant. Through implementing the recommendations and strategies for HR to investigate, I am sure that an informed decision can be made for the plant.

References

Biggens, L. S. & Co. LLC. (2015). Selecting the Best Location for Your US Manufacturing Plant. P.5. Retrieved on 27th Feb 2019 from www.blsstrategies.com/docs/pages/files/ 0Resource%20Selection%20in%20the%2US%20-%20Final%20Draft%20v02(1)%20(3).pdf

International Labor Organization. (2018). Country Profiles. Retrieved from http://www.ilo.org/ilostat/faces/oracle/webcenter/portalapp/pagehierarchy/Page21.jspx?afrLoop=132094746270694&_afrWindowMode=0&_afrWindowId=1cjpwpfo9a_298#!%40%40%3F_afrWindowId1cjpwpfo9a_298%26_afrLoop%3D132094746270694%26_afrWindowMode%3D0%26_adf.ctrl-state%3D1cjpwpfo9a_342

Linton, I. (2018). How to Internationally Outsource Manufacturing. Retrieved from http://smallbusiness.chron.com/internatioy-outsource-manufacturing-40569.html

U.S. Steel.com. (2018). United States Steel Corporation. Retrieved from https://www.ussteel.com