Dim light illuminates Paulo Ferreira's troubled face as he stares at charts depicting a bleak reality – declining quality, absenteeism on the rise, and a record number of production stoppages. The once-vibrant Campinas plant of Luna Motors, Brazil, stands on the precipice of collapse.
Paulo, a problem-solver at heart, wrestles with a daring plan: a $1 billion modernization project to double production and revitalize the plant's competitiveness. But his ambitious vision hinges on the crucial support of a formidable force – the Aliança Automotiva Brasileira (AAB) labor union.
With 70% of the workforce under AAB's banner, their leader, Lucia Mendez, wields immense power. Recent union tactics - increased use of the production-halting "andon cord" and daily protests at the factory gates – underscore the union's influence and Paulo's precarious position. The memory of a crippling decade-old strike haunts him, a stark reminder of the union's power to paralyze operations.
Previous encounters with Lucia have yielded little progress. Paulo's attempts at appeasement – improved wages, additional leave, and subsidized transportation – have fallen short. He yearns for a more collaborative approach, inspired by successful models in Germany and Japan, yet Lucia seems entrenched in a combative mindset.
Paulo acknowledges past missteps. Luna's initial rapid expansion prioritized technical prowess over effective communication and leadership development. Legitimate worker concerns about ergonomics and safety were neglected, further eroding trust. Paulo fervently desires a reset, fostering a spirit of partnership instead of perpetuating antagonism.
The protracted negotiations and escalating union activity begin to take their toll on Paulo's management team. Frustration and resentment simmer, jeopardizing future collaborative efforts with the union.
Suddenly, Paulo's phone rings. Takeshi Nakamura, Luna's global operations vice president, delivers a chilling message. While impressed by Paulo's proposal, headquarters is reaching its limit with the labor strife. The alternative? Repurposing Campinas as a distribution hub, a move that would decimate the local workforce and shatter Paulo's commitment to his community.
At home, Paulo wrestles with Lucia's unexpected letter. The union leader, ever the strategist, likely gleaned wind of Paulo's expansion plan. Her demands include reasonable requests like wage increases and improved working conditions, but also more radical ones – greater influence in hiring, training, and promotion decisions, limitations on AI implementation, and guarantees against future layoffs. Paulo grapples with the implications. While some demands appear negotiable, others threaten to hinder technological advancement and long-term competitiveness.
Paulo doubts Lucia's sincerity. Her recent media portrayal of Luna as a "corporate villain" and her political aspirations raise questions about her true objective: securing a deal or using the conflict to bolster her political image.
Amidst the tension, a flicker of hope emerges. Lucia's text message invites Paulo for a meal, suggesting a willingness to move beyond text-based negotiations. Her closing line, "The union is like your in-laws. Even when they frustrate you, they're still family," hints at a potential shift towards collaboration.
Paulo faces a critical decision. Will he adopt a hard-line approach, leveraging the threat of closure, or will he gamble on collaboration? He recognizes past management errors and acknowledges the need to address some union demands. However, surrendering control over technological advancements poses a significant risk to the plant's future.
Paulo's heart yearns for reconciliation and growth, yet his mind cautions against the dangers of compromising too much. His next move will be the most consequential of his career. Can he bridge the labor divide and forge a path to prosperity for both the company and its workforce? The future of the Campinas plant hangs in the balance.
