Tecumseh Products 2014 Annual Report Download - page 14

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We may be adversely impacted by work stoppages and other labor matters.
As of December 31, 2014, we employed approximately 5,200 full-time equivalent employees and an additional 1,000
temporary employees and contractors worldwide. The majority of people we employ on a full time and temporary basis are in
foreign locations and approximately 4,800 are represented by national trade unions. While we do not believe that we will be
impacted by work stoppages and other labor matters, future issues with our labor unions might not be resolved favorably and
we might encounter future strikes, further unionization efforts or other types of conflicts with labor unions or our employees.
Any of these factors may have an adverse effect on us or may limit our flexibility in dealing with our workforce. In addition,
many of our customers have unionized work forces. Work stoppages or slow-downs experienced by our customers could result
in slow-downs or closures at their plants where our products are installed. If one or more of our customers experience a material
work stoppage, it could have a material adverse effect on our business, results of operations and financial condition.
A breach in cyber security relating to our information technology systems or failures of third-party technology service
providers to perform effectively could adversely affect our reputation, competitive position, business or results of
operations.
We rely on information technology systems to process, transmit and store electronic information and manage and operate our
business. A breach in cyber security could expose us and our customers and suppliers to risks of misuse of confidential
information, manipulation and destruction of data, production downtimes and operations disruptions, which in turn could
adversely affect our reputation, competitive position, business or results of operations.
In addition, we have outsourced certain information technology support services and administrative functions, such as payroll
processing and benefit plan administration, to third-party service providers and may outsource other functions in the future to
achieve cost savings and efficiencies. If the service providers to which we outsource these functions do not perform effectively,
we may have to incur additional costs to correct errors made by such service providers. Depending on the function involved,
such errors may also lead to business disruption, processing inefficiencies or the loss of or damage to intellectual property
through security breach, or harm employee morale, which, in turn could adversely affect our reputation, competitive position,
business or results of operations.
Our financial statements may be impacted by future changes in accounting rules and requirements, and these changes
may be costly to implement.
Future changes in accounting rules and disclosure requirements could significantly impact our reported financial results and the
comparability of financial statements. We constantly monitor new accounting proposals under development by the standard
setting bodies. Potential future changes in accounting rules and regulations could be time-consuming and costly to implement.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.