ABB & GALINDO: Stretching managerial responsibility during restructuring

IE code:
DE1-212-I
Language:   English
Format:  
PDF
Nr. Of Pages:
13
Academic Area:
Type of publication:
Case Study

Description

The case follows the implementation of ABB´s decision to restructure its operations in Spain and close the manufacturing line at its Galindo factory in the Basque Country. ABB was required to enter into formal negotiations with its workers towards a Labor Force Reduction Procedure (ERE).  The workers at Galindo strongly objected to ABB´s restructuring proposals and were not placated by the company´s generous offers of compensation and employee retraining. The workers employed a number of strategies to derail the ERE including appealing to local politicians and engaging in public protests. After negotiations failed, a final decision was made to approve the ERE by the Ministry of Labor in Madrid.