Mandatory overtime is the practice of requiring workers to work longer
hours than the standard 40-hour workweek. It is not always a popular
practice. Some workers welcome the overtime as a chance to add to their
wages, while others resent having to work longer hours and spend more time
away from their families and friends. Currently, mandatory overtime is
allowable on the assembly line, and it is used when production shortages
occur, or there is a higher than average demand for parts and finished
product. Michigan state law states, "There is no law prohibiting mandatory
overtime or work on a Saturday, Sunday, or holiday" (Michigan.gov, 2003).
The new Department of Labor (DOL) guidelines issued last month require
overtime pay for hourly employees. Any exempt employee that makes $23,660
or more can be exempt from overtime pay (Smith, 2004). Thus, overtime pay
is still used for hourly workers, but it would make more sense to create
more exempt salaried positions, and require overtime as necessary from
those positions.
Mandatory overtime is necessary for a variety of reasons, but normally
it occurs during peak busy periods, when shortages occur, or when certain
parts or finished products are required in a hurry. Sometimes these surges
in production can be predicted and shifts altered accordingly, but at other
times, the surges are simply unpredictable, and mandatory overtime is a
necessity. It is much more cost effective to require mandatory overtime
rather than creating new positions. At times, those positions could be
surplus and so eliminated. In addition, new employees require training and
ramping up time, while experienced employees already understand their jobs
and the needs of General Motors. Therefore, hiring more people to cover
during busy times is not practical or cost effective. Utilizing employees
who are already employed eliminates the need for training, hiring costs,
and layo...