A U.S. automotive supplier hired IMG to develop a strike contingency plan for one of their facilities in Spain. The strike was anticipated as a result of the company announcing that the facility would be closed. Fortunately, the company engaged IMG’s services approximately six months before they planned to make the announcement, allowing for sufficient time to plan for multiple contingencies.
IMG’s planning took into consideration the contractual obligations of the company to deliver parts to its customers (they were facing costly fines if they failed to deliver parts on time), the key interdependencies in the company’s supply chain, as well as recent union and government protests in the area against plant closures.
IMG worked closely with the company to determine their critical objectives and understand their tolerance for supply chain disruptions. Once these objectives were clearly understood, IMG was able to develop a robust contingency plan for the company that identified clear steps that needed to be taken, and milestones that needed to be reached, in order to achieve the client’s objectives.
As a result, the company was able to close the plant without missing one day of production of critical parts. When the unions realized they had no leverage, there was no call for a strike and the company was able to quickly negotiate a severance package for the union members and close the plant.