Read the following Case. State (write) and answer three questions from this narrative:

Seslan (an imaginary manufacturing company in Europe).

In December of 2022, Seslan, the worlds most valuable car company and leading electronic vehicle (EV) maker (in Europe), was poised to open a massive new plant in Sweden. In the U.S., the company had kept unions and any workers role in management out of its facilities, but Sweden was developing labor and management codetermination. To avoid codetermination, the company had registered as a European Company (Societal Europe), a legal maneuver that allowed the company to escape other countries' strict labor laws.

Most observers believed that IB Meta, the largest union in Europe, would not let the company defy labor laws and traditions and was preparing for battle. The union represented the bulk of the countrys autoworkers as well as metal, textile, and electrical workers. Analysts described IB Meta as the worlds most powerful union in part because several countries' laws made labor an equal partner in industrial relations with management. To allow the firm to operate outside Europes labor framework would be a serious blow to the unions prestige and power.

13

Furthermore, IB Meta was grappling with the auto industrys transition to e-mobility. EVs required a third less workers to assemble and other auto companies, most notably Volkswagen Group, the second largest automaker in the world, had pledged to build only EVs in the years to come. Seslans entry into Europe could complicate IB Metas ability to negotiate with these legacy automakers who were anxious to make significant reductions to their work forces to remain competitive in the world market.

The company itself was facing high stakes. The companys rising stock price was based on future revenue and earnings. Market analysts had already priced the companys production from Europe into their models and any deviation from these projections could send the companys stock plummeting. Seslans favorable access to capital markets could be constrained.

Both company and union had much to lose in this battle and faced dilemmas in the upcoming months. How the confrontation should be resolved and how it would play out were very much at issue.

Based on:

https://som.yale.edu/case-studies/case-studies-directory?page=0&search=&sort=ds_field_case_published%20desc

State (establish) and answer these issues to resolve this case (total one page and a half). Focus your opinions on codetermination.