Labor unrest at Wistron Corporation India plant What went wrong?

Title

Labor unrest at Wistron Corporation India plant What went wrong?

Creator

Saldanha A.T.; Aranha R.; Chandran V.

Description

Learning outcomes: After completion of this case study, students/managers will be able to analyze reasons for the labor unrest at Wistron Corporations Indian manufacturing plant; examine the implementation of labor regulations applicable to the employment of contract workers by Wistron Corporation; infer the problems associated with rapid expansion in the workforce; analyze the labor regulatory challenges faced by Wistron Corporation; and demonstrate problem-solving skills. Case overview/synopsis: The focus of this case study was the crisis faced by Apples contract manufacturer Wistron Corporation due to labor unrest, riots and violence in its production facility located near Bangalore in India. This case study discussed the CEOs dilemma in resolving the crisis and regaining the confidence of stakeholders, namely, the contract employees, Apple Inc. and the State Government of Karnataka. To give the readers an overview of the crisis this case discussed in detail the underlying reasons for the labor unrest such as a rapid increase in manpower, unilateral increase in working hours without extra pay, unjustified pay cuts, understaffed and underqualified human resources (HR) department, ill-equipped attendance and payroll system. It also gave an overview of mistakes in labor management that could be avoided by a manufacturing firm. The case also discussed the pressure faced by the Wistron CEO due to probation and a new business freeze by Apple Inc. This case study is suitable for understanding the complexities of labor laws and the legal complications that can arise when a corporation disregards local labor laws while operating in foreign countries. Complexity academic level: The case is best suited for postgraduate and executive MBA students studying labor law, industrial psychology and HR management in commerce and business management streams. The authors suggest that the instructor should inform students to read the case study before attending the 90-min session. It can be executed in the classroom after discussing the theoretical concepts. Supplementary materials: Teaching notes are available for educators only. Subject code: CSS 6: Human Resource Management. 2024, Emerald Publishing Limited.

Source

Emerald Emerging Markets Case Studies, Vol-14, No. 1, pp. 1-13.

Date

2024-01-01

Publisher

Emerald Publishing

Subject

Employee attitudes; Employee behavior; Employee commitment; International business; Labor market

Coverage

Saldanha A.T., Department of Marketing, St. Joseph's Institute of Management, Bangalore, India; Aranha R., School of Business and Management, CHRIST (Deemed to be University), Bangalore, India; Chandran V., Global Institute of Business Studies (GIBS), Bangalore, India

Rights

Restricted Access

Relation

ISSN: 20450621

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1108/EEMCS-07-2023-0248

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85184673635&doi=10.1108%2fEEMCS-07-2023-0248&partnerID=40&md5=fbf9ea2df89efbc0eeaeb0b702f29185