This Case is about GOVERNMENT, LABOR, NEGOTIATIONS
PUBLICATION DATE: November 09, 2007 PRODUCT #: 308075-PDF-ENG
The Haier Group, the primary mainland Chinese corporation to make it to the Financial Times list of Asia’s “most respected companies,” attributes its success in large measure to the new value system it’s sought to instill through the organization. But when Haier takes over the Yellow Mountain tv factory in the distant Hefei state at the behest of the authorities of Hefei, workers strike what it stands for and against the Haier culture. The immediate trigger is the labor contract Haier has requested them to sign. Haier’s management must determine what is reasonable and the best way to react to the workers’ demands to compromise in the face of local government pressure.