• Storm in Shanghai: The Besieged Giantlok

Abstract

This case study discusses a Taiwanese traditional manufacturing company that was established in Taiwan and flourished in China. By harnessing labor cost advantages in China, the company occupied a significant place in the global cable ties industry. Because of changes in China’s industrial policies and processing trade policy reforms, these advantages gradually diminished. During a large-scale factory inspection by the customs authorities, the company decided to redistribute the production capacity in its factories in Shanghai and Thailand. However, insufficient organizational communication led to a strike organized by employees in the Shanghai factory, during which they blockaded the factory. There are few instances wherein employees have organized a strike in either China or Taiwan and few in-depth and detailed records of such cases exist. Therefore, this case study may serve as a valuable reference to enable students to understand the causes, processes, and consequences of strike actions and the corresponding solutions to resolve them.

Keywords: Crisis Management, Strike Action, Agency Cost, Foreign Investment