Rolls Royce Retrenchment Strategy: Beneficial or Detrimental?

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Case

Reference no. 408-052-1

Subject category: Human Resource Management / Organisational Behaviour

Authors: Siddhartha Paul (IBS Research Centre, Kolkata (IRCK)); Sudeshna Bhattacharya (IBS Research Centre, Kolkata (IRCK))

Published by: IBS Research Center

Published in: 2008

Length: 9 pages

Data source: Published sources

Topics: Closure; Downsizing; Trade Union disputes; Industrial relations; Worker's Participation in Management (WPM); Tripartite meetings; Bipartite meetings; Relocation issues; Restructuring strategy; Negotiation process; Labour unrest; Political intervention

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Abstract

In 2007, Rolls Royce decided to close down one of its manufacturing units in Merseyside, UK. This led to a large-scale retrenchment of its workforce. The decision was massively resented by the largest trade union body of the UK, Unite. They felt that Rolls Royce was unjustly retrenching its highly skilled and loyal workforce. It doubted the company's real intention behind the proposed closure. The company totally nullified the allegations made by Unite. It claimed that to circumvent the rising overhead expenses, it had been forced by circumstances to take such a measure. This resulted in industrial disputes and mass agitations by the workers.

Location:

Industry:

Automobile

Other setting(s):

2007