In response to @tobykwan’s post:
The article stated the unethical termination of contract by Air Canada toward Aveos, its maintenance repair division. In March, Air Canada had terminated the contract with Aveos before the agreed date, and since AC made up 85% of the company’s revenue, Aveos was forced into bankruptcy [1]. As a result, 1,800 employees were put out of work almost overnight; thus sparking protests outside Aveos buildings in Montreal and Vancouver [2].
In her post, Toby stated the importance of trust between two businesses as it can affect the reputation of the company in the business world. In addition to her statement, I want to further point out: Besides influencing the external image of the company, a broken trust may also stir up the company’s internal organization and function. AC’s contract termination toward Aveos may create insecurity inside AC’s own employees. Knowing that their own company had just laid off workers from its partner company with no compensation, how can AC’s employees ensure that they won’t be laid off as well any time soon? Hence, this incident can influence AC’s employee loyalty and their working attitude, which may even lead to a long term misguidance of the company’s internal values and goals. Thus, trust must be handled with precaution and care both internally and externally by any company.
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Sources:
[1] https://blogs.ubc.ca/tobykwan/2012/09/11/aveos-shutdown/
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