Case Analysis Example: Everlane

Problem Statement

Everlane is facing backlash that is ruining their public image due to rumors that they are anti-union. It contradicts the image that Everlane is trying to display to the consumers.

Analysis

Everlane prides itself on being transparent with its consumers by sharing with the consumers the company’s entire chain of operations. Due to COVID-19, the company incurred a large amount of losses, they had no other choice but to begin cutting costs and trying to rescue the company from being forced possibly to shut down. 

Additionally, the employees never managed to gain enough number of signatures to start a union. The backlash only began to unfold after a large number of employees have been laid off due to the crisis that Everlane has encountered. The company was accused of being anti-union by former employees that may have tried unionizing during the pandemic. However, they failed to do so without the company having any evidence who was and wasn’t in favor of a unionization. 

Alternatives

One possible solution to improve the public image of Everlane by proving that they are not anti-union is to allow employees to unionize. This solution will eliminate the rumors of Everlane trying to get rid of employees who are pro-union. A negative impact that this may lead to is that employees may be blacklisted in the future by upper management and the CEO of the company. 

An Alternative solution to this problem would be to share with the public that Everlane had no idea who was in favor of a union at the company. Also, the company should share that the employees never managed to obtain enough signatures for a union.  However, there could be some repercussions that Everlane may face such as, sharing information of current and former employees who wanted to unionize. 

Recommendation

The best solution to this problem is for Everlane to share with the public that there is no way Everlane could have found about which employees wanted to be part of the union. This will improve the public image of Everlane by proving to the public that they wish to remain transparent with both their customers, and employees. Although the company may be aware of who wanted to unionize, the employees should feel protected due to Everlane proving that the only reason a unionization had failed was due to employees not getting enough signatures. This solution is the best option to restore the public image of Everlane and prove once and for all that Everlane is not anti-union.