Business Case Studies, What Employees Want

print page
Tell A Friend

Case Categories

Share |

HRM / OB Case Study

Case Title:

Rolls Royce Retrenchment Strategy: Beneficial or Detrimental?

Publication Year : 2010

Authors: S Paul and S Bhattacharya

Industry: Automobiles


Case Code: HRM0076IRC

Teaching Note: Not Available

Structured Assignment:  Not Available

Buy This Case Study

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.

Pedagogical Objectives:

  • To understand the factors that instigated the retrenchment of the skilled workforce of Rolls Royce.
  • To analyse the controversies that stormed between the company and the trade unions due to the decision of closure followed by subsequent retrenchment of its workforce.
  • To analyse the role of human resources policies in shaping the image of a company.

Keywords :  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

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA, E-mail:

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap