Case Study on a Worker-Owned Firm

Requirement

W. L. Gore is the maker of the Gore-Tex waterproof fabric found in all sorts of outdoor clothing. GoreTex is a unique kind of textile made, basically, out of Teflon. Gore-Tex's pores are hundreds of times too small to let through water droplets. Gore was working for his father's company, which made wires and coatings for wires. He tried making a plumber's tape with a Teflon coating, but the sheet of Teflon material he was using wasn't flexible enough. He got so frustrated that he jerked at it in his hands. When he stretched it that way, it changed its structure and became porous. Gore realized that the material had commercial possibilities and built Gore-Tex around the invention.
However, before anyone got as far as posting a want ad, the man's former team members met and figured out how they could make do with one less body. They would have to work harder without more pay, but they wanted to do what was best for the enterprise.
The cooperative spirit of this company arises from a unique structure with no fixed hierarchy, few titles, and no formal job descriptions. Any "associate” can speak directly to any other without going through a chain of command. Together the 6,000 associates own the company.
The theory behind employee-ownership programs is that they will transform workers from clock punchers into partners who will be motivated to better serve customers and make things run more efficiently. At the most successful worker-owned firms, the theory is pretty close to reality.
On average, worker-owned companies survive longer, lose fewer workers, enjoy bigger profits, and are more productive than their non-employee-owned competitors. The key to the success of employee-owned companies is openness of information and decision making.
Each worker at Gore enjoys broad discretion to make minor decisions. Bigger ones hiring and firing, setting compensation are made by committees whose members constantly shift with the demands of the business. Anyone can start a new project simply by persuading enough people to go along with the idea. Even Bob Gore, chair and son of the founders, has his compensation set by a committee.
The arrangement has its costs. Above all, workers are forced to devote a lot of time to building relationships. Says process technology manager Michael Jones, "At a traditional company, you have one boss to please. Here, you have everyone to please.” Few companies go so far; most American firms in which workers own a majority of the stock are organized as conventional hierarchies. But evidence is growing that the most successful firms are those that find some consistent way of empowering workers.
1. What do you see as the advantages and disadvantages of working for a worker-owned firm?
2. Since there are no hierarchies in worker-owned firms, how would you go about setting the pay scale for people, especially over time? Since there is no hierarchy, there is no way of moving up in the firm. How do you motivate people in such conditions?
3. A worker-owned firm is a radical way of empowering workers. What is the advantage of empowering workers in the first place?

CASE 1

In the first case, there is a clear issue of mistake that was committed by Emma, who was the manager of ‘Shocks Are Us’. She was mistaken, which was completely unintentional, and conveyed the wrong news to Richard and delivered the wrong product to him. Mistake generally is considered to be a belief that something actually exists, when the reality is that it does not. The aspect of causing a mistake may be regarding an underlying of fundamental fact which may be in the context of the subject matter of a contract (Alquraini, 2011, p.154). The mistake may also arise due to the negligence which can be completely unintentional. In this case mistake out of negligence on the part of Emma can be counted as she interpreted the wrong page of the brochure. However, due to this act of mistake, Richard has been allowed to several claims or rights against ‘Shock Are Us’. He can claim damage that has been caused to the jeep and along with it, the additional charges of compensation resulting from this entire series of transaction. Richard may also take only the damages that his jeep had endured and established a new transaction with the shop from where he had purchased the tools, forgoing his entire compensation charge, which is completely upon the discreet of Richard. The remedy as of claiming damages shall be so claimed under the law of tort where loss or damages are suffered by one party due to the negligent act of the other. In such context, whether the negligence was done out of complete innocence or with sufficient intention to deceive or cause harm or loss, is completely immaterial.

CASE 2

In this instant case, there was already a contract between Richard and George in the form of a lease which initiated an annual increase of the lease amount every year. Upon the request of Richard owing to some financial problems of the same and on the request of Richard to forgo the annual hike of the lease amount, George made a verbal agreement that he would not make the increment that year. However, no written agreement was signed on that behalf, neither was any documentation framed in that same aspect.  The alterations which were agreed by George so as to forgo the annual increment for that particular year, was an oral contract and was not written and registered. As a lease agreement Is always a registered document and agreement, this alteration was also required to be made in the same manner thorough a registered deed, and only then it could have been made enforceable in the court (Bhailís & Flynn, 2017, p.12). An oral agreement in this context is absolutely vague and unenforceable. Thus, the agreement which is entirely based on verbal conversations, cannot be enforced in the court (Sloan, 2017, p.72)  and Richard has no remedy available against Georgein this instant case, but to pay the entire lease amount without adding any reduction to its effect.

CASE 3

The third case referred is a case of infringement or violation of the contract. The mode of communication in this aspect was legal, through written words i.e. by e mail.  There was a clear offer to sell on the side of Richards, and an acceptance was made from the side of Tom. Tom at first tried to negotiate the purchase amount to which Richard did not give his assent. However, later,   Tom agreed to take the car at the price offered by Richard. There was a clear communication of this changed intention of Tom as he had mailed Richard that he intends to buy the car at the price stated by Richard. However, when Richard went to the house of Tom, he refused to accept the car and to pay money for it. This is a lacuna on the part of Tom as he should have communicated his changed intent of not purchasing the car thus putting an end to the contract (Sloan, 2018, p.81). But his failure to so communicate it to Richards makes the agreement end with the fact that Tom was willing to purchase the car. Richard in this context has certain remedies, to claim compensation for the trouble he had in bringing the car to the place of tom and also to claim any compensation which he had at all faced because of entering into the contract with Tom. For example, the loss if he had denied the sale of the car to any other person as he knew that it was already taken or booked by Tom. However, he has to prove this and such compensation is supposed to be minimal. Lastly, both Tom and Richard have another option to end the earlier contract, and entering into a new contract under the same or different terms and conditions (Ariffin, 2014, p.113). In this case however, Richard cannot claim the compensation charges against Tom.

CASE 4

There was a fault in expressing the terms and the agreements of the contract between Martin and Richard. Martin said that he needs the car but does not mention that the car is needed in the interests of his friend. Had he intimated Richards earlier about the fact that the car is neede for his friend, the proper charges would have been taken from him by Richards. As the conveyance of the terms and conditions were not aptly communicated the laches fall on the part of Martin and not in the part of Richards, who has thus faced loss due to the improper communications made by Martin. Thus martin in the instant case stands as the defaulter in the performance of the contract and hence holds the position to pay the remuneration or the compensation that has been suffered by Richards due to the fault of Martin for not communicating the matters aptly. 

References

• Alquraini, T. A. (2011). An analysis of legal issues relating to the least restrictive environment standards. Journal of Research in Special Educational Needs,13(2), 152-158. doi:10.1111/j.1471-3802.2011.01220.x

• Ariffin, A. (2014). The Reading of Legal Cases by Law Undergraduates: Some Problems and Suggestions. Procedia - Social and Behavioral Sciences,134(1), 109-118. doi:10.1016/j.sbspro.2014.04.228

• Bhailís, C. D., & Flynn, E. (2017). Recognising legal capacity: Commentary and analysis of Article 12 CRPD. International Journal of Law in Context,13(01), 6-21. doi:10.1017/s174455231600046x

• Sloan, A. E. (2017). RESEARCHING THE LAW: Finding what you need when you need it. S.l.: WOLTERS KLUWER LAW & BUS.

• Sloan, A. E. (2018). Basic legal research: Tools and strategies. New York City: Wolters Kluwer.