FOXCONN INDIAS PLANT SHUTDOWN:

WORKERS UNIONS MANAGEMENT DEADLOCK

ABSTRACT
Set in the backdrop of Foxconns shutdown of its Indian operations, this case study sensitizes the participants to
the circumstances that led to the closure of its Indian operations and whether Foxconn was right in the way it
contracted its closure. The participants can discuss and debate on the actions of the workers and unions at
Foxconn India, using the relevant legal provisions governing such actions and the possible recourse for the
aggrieved employees. Citing the reason of no orders from Nokia, all the Foxconn employees were placed under
paid-holiday-leave status, from December 22nd 2014. The trade unions and Assistant Labour Commissioner
termed the lockout illegal, as the company did not follow the legal procedures before announcing the closure.
Employees, under the guidance of their trade unions, resorted to protests, hunger strikes and forced entry into
the factory premises. Under the provisions of the Industrial Disputes Act, 1947, can the management and the
workers resort to such actions? How should both parties deal with their respective issues under the provisions of
relevant Acts?

Pedagogical Objectives

To understand how Foxconn's operation in TSEZ/Nokia SEZ contributed to and affected the manufacturing
and employment ecosystem

To understand the factors contributing to Foxconn's shutdown of Indian operations and the resultant labor
unrest and the unified agitations from Trade Unions

To discuss and debate whether Foxconn's reasoning for shutting down it Indian operations was justified

To examine the efficacy of actions taken by Foxconn's management, unions and employees

To understand the relevant provisions of lock-out/closure, lay-offs and strikes as enshrined in the Industrial
Disputes Act, 1947 and Trade Unions Act, 1926 and examine the efficacy of the actions taken by Foxconn
and its employees

Case Positioning and Setting

This case study can be used in either MBA or Executive MBA or Executive Development Programs, for the
following modules/topics in the Human Resource Management course:

Labor Relations and Collective Bargaining To understand the role of the Laws and Acts in preventing the
disputing parties from taking wrong actions and facilitating a meaningful collective bargaining advantage

Trade Unions Act, 1926 and Industrial Disputes Act, 1947 To sensitize the participants to the right and
wrong of the actions like closure, strikes and collective bargaining as interpreted from the Acts
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