The complexity of restructuring of large companies can hardly ever be ignored. ABB & Galindo brings up the dilemma of Esther, Human Resources director at the factory, when she is faced with the transition of a factory into a service center. This meant either relocating, retraining or letting go most if not all of the current workers, with the additional complication that even after the official announcement the factory still had to run for another 18 months. This case also has a part B.

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.