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Management article
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Reference no. R2402M
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 2024

Abstract

Paulo Ferreira, the president of Luna Brazil, has an ambitious plan to turn around the dismal performance of the plant he oversees in Campinas. The wrinkle is, he needs the buy-in of the powerful local union, which is still smarting from a 10-year-old labor conflict and lately has begun to step up its demands and picket outside the factory. Headquarters, running out of patience with the dispute, wants Paulo to consider converting the plant to a distribution center. But that would mean hundreds of layoffs, which would decimate the local community that Paolo loves. This HBR Case Study includes both the case and the commentary. For teaching purposes, this reprint is also available in two other versions: case study-only and commentary-only.

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Abstract

Paulo Ferreira, the president of Luna Brazil, has an ambitious plan to turn around the dismal performance of the plant he oversees in Campinas. The wrinkle is, he needs the buy-in of the powerful local union, which is still smarting from a 10-year-old labor conflict and lately has begun to step up its demands and picket outside the factory. Headquarters, running out of patience with the dispute, wants Paulo to consider converting the plant to a distribution center. But that would mean hundreds of layoffs, which would decimate the local community that Paolo loves. This HBR Case Study includes both the case and the commentary. For teaching purposes, this reprint is also available in two other versions: case study-only and commentary-only.

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