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Published by: IE Business School
Originally published in: 2015
Version: 16 January 2018
Length: 13 pages
Data source: Field research

Abstract

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.

Geographical setting

Region:
Europe
Country:
Spain
Location:
Basque Country

Featured company

ABB

About

Abstract

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.

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Geographical setting

Region:
Europe
Country:
Spain
Location:
Basque Country

Featured company

ABB

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