Case Study :

Hostage and manager. These are two words that you would not usually expect to hear spoken in the same

breath. However, during the first few months of 2009, workers at manufacturing facilities of 3M Company, Sony Corporation, and Caterpillar Inc. in France took managers hostage. Why? To negotiate better severance packages and benefits for laid-off employees. French workers have long been known for their aggressive and radical responses to what they feel is wrong or oppressive treatment. Says one French executive, "Protest is inscribed in the genes of French culture. In the past, peasants protested against their lords. Today the difference is that the lords are chief executives." Protesting French workers have been known to burn piles of tires in city streets or tie up traffic with caravans of farm tractors. In one instance, striking truckers blockaded roads and highways to highlight their campaign for retirement at age 55. The labor blockade worked, as the French government relented when food supplies started to run out. And the tactic of taking the boss hostage has been used previously, as well. For instance, in1997, workers at the state-run mortgage bank Credit Foncier de France took their boss hostage for five days to try and prevent the bank's closing even though it had been losing money. Although kidnapping your boss isn't legal, a French sociologist who surveyed 3,000 companies found that 18 of them had experienced an "executive detention" in the prior three years.These actions by workers, which have been peaceful and more of a symbolic protest, were in response to the economic downturn. Although France wasn't in any worse shape than other big industrialized economies, the country's "strong tradition of egalitarianism triggers strong reactions when people think they are being mistreated or when better-off people appear to flaunt their wealth at a time of general hardship." At Caterpillar's French facility near Grenoble, unhappy workers first went on strike for a day. The next day, they detained the plant director and four other managers for about 24 hours. The managers were released only after the company agreed to resume talks with unions and a government mediator on "how to improve compensation for workers being laid off." The incident at Caterpillar followed others at Sony and 3M, where managers also were held captive by workers angry over being laid off. Although all of the hostage-taking incidents were resolved peacefully, some analysts wonder if more violent actions may be in store, especially if workers feel they have nothing to lose.

Q1:- What's your reaction to these events? Do you think the reaction is influenced by the culture, values, and traditions of the country or the practices followed in organization? Explain.

(15 Marks)

Q2:-What might the French managers have done differently leading up to the point at which workers felt they needed to take their managers hostage in order to be heard? Explain.