MEDITERRANEAN TEXTILE COMPANY: NEGOTIATING FOR THE RELEASE OF HOSTAGES

Mediterranean Textile Company: Negotiating for the Release of Hostages

THE CONTEXT

Mediterranean Textile Company: Negotiating for the Release of Hostages is a unique case study that touches upon multiple dimensions of the operations of a multinational corporation in foreign countries. The case is structured around a specific issue of negotiating for the release of hostages in the wake of political and economic turmoil during the Tahrir Square Revolution 2011 in Egypt. The CEO of Mediterranean Textile Company (MTC), Mr Usman Khan, finds himself perplexed and confused about how to resolve the conflict in his company that had divided into two factions due to the political crisis. Some managers, mostly Pakistani expatriates, were being kept as hostages by the Egyptian workers who were asking for more lucrative salaries and working terms. How Usman would handle this situation and negotiate with the union representatives will be consequential for MTC.

THE DECISION

On the cold evening of 11 January 2011, Mr Usman Khan, the Chief Executive Officer (CEO) of Mediterranean Textile Company (MTC), waited anxiously for a crucial meeting with the senior management. He was extremely worried about the recent turn of events that had resulted in members of his management team being held hostage by the labour union at the mills. As the CEO, he had to chart out a course of action immediately to get the hostages released and to decide upon the future strategy for MTC, in the wake of ongoing and unprecedented labour and political crises. Recent political turmoil had not only destabilised the economy and society of Egypt but also adversely affected the operations of MTC. Frequent labour strikes had caused repeated disruptions in production which, in turn, caused several delays in the exports to the most lucrative European markets. The friction between the top foreign management and the local workforce had exacerbated during the last few months. During the most recent labour strike that had begun 72 hours ago, workers had taken hostage a number of foreign managers and engineers working in the mills. Out of 650 employees, 250 were participating in the strike and had placed a long list of demands to be met. The outcome of negotiation with labour representatives would have long-term consequences not only for the safety of the hostages but also for the viability of continued operations at MTC.

Ahmad, M.G., & Rasheed D. (2018). Mediterranean Textile Company: Negotiating for the Release of Hostages. Asian Journal of Management Cases, 15(1), 92-101.
https://doi.org/10.1177/0972820117744686

About the Author

Ghufran Ahmad is Assistant Professor at the SDSB, LUMS. He teaches courses in leadership, change management, negotiation skills, and quantitative research methods. His research interests include leadership, culture, group dynamics, social dilemmas faced by group members, how social preferences influence behaviour and performance of groups. His research has been published in Organization Science and Journal of Operations Management.

Email: ghufran.ahmad@lums.edu.pk