ISS: Managing a strike - Teaching note

This case presents a complex labor dispute in the context of the subrogation of staff following a change in service provider. ISS takes on a new contract without full knowledge of the prior commitments the outgoing company had undertaken toward its employees. Just days before the service is due to start, a strike breaks out among workers who have been excluded from the subrogation process, including union representatives. The situation is further complicated by tensions between unions, pressure from the client (BigM), strategic decisions by ISS, and growing media visibility. This case study allows for an analysis of how a company can manage a labor crisis in real time while dealing with legal, ethical, operational, and human dilemmas.
Collection: IESE (España)
Ref: DPOT-138-E
Format: PDF
Number of pages: 10
Publication Date: Oct 17, 2025
Language: English

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Description

This case presents a complex labor dispute in the context of the subrogation of staff following a change in service provider. ISS takes on a new contract without full knowledge of the prior commitments the outgoing company had undertaken toward its employees. Just days before the service is due to start, a strike breaks out among workers who have been excluded from the subrogation process, including union representatives. The situation is further complicated by tensions between unions, pressure from the client (BigM), strategic decisions by ISS, and growing media visibility. This case study allows for an analysis of how a company can manage a labor crisis in real time while dealing with legal, ethical, operational, and human dilemmas.
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Learning Objective

Understand the complexity of labor relations in highly unionized environments with multiple stakeholders.
Analyze strategic decisions from a people management perspective in contexts of uncertainty and tension.
Evaluate alternatives for managing labor disputes, taking into account their impact on reputation, operations, legal compliance, and organizational culture.
Reflect on the role of leadership in communication, negotiation, and the building of trust-based relationships with employees and unions.
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"ISS: Managing a strike - Teaching note"