CASE STUDY CHARACTERS (1} Role briefs Joint Managing Director Brandon Tracey A (Alpha) (2} Joint Managing Director Thomas Knight B (Alpha) (3) Personnel Ofcer Alan Cowsley C (Alpha) (4) Shop Stewards Convenor Alan Down D (Colmar) (5} Financial Director Marjory Simpson E (Colmar) 2.DEVELOPMENT : Alpha Plastics, situated near Manchester, was founded in the post~WW2 period (1914) by two young industrial chemists, Trevor Knight and Bernard Tracey. With the boom in plastics the fum expanded rapidly and by the mid 1930's it had developed into a mediumusized company employing some 6,000 people. The rm built up its reputation in developing and manufacturing a wide range of laminates and industrial adhesives which were sold under the trade mark of Alphalam now a household name. As a result of an earlier take-over it had also acquired interests in synthetic ber manufacture. Despite its rapid growth the rm has always had a reputation for looking after its employees. Possibly because of the good rates of pay, excellent working conditions, and understanding informality which always characterized Alpha's management, union membership was low. Attempts at recruitment, though never obstructed by the management, were largely unsuccessful. There was always a welladeveloped sense of loyalty to the rm with a high level of morale. 3.RUMOURS : From 2010 onwards there were intermittent mmors that Alpha Plastics might merge with the Colmar Chemical Company, a slightly larger organization employing 8,500 personnel, located near Stockport, some ve miles away. Colmar has a wider diversity of interests: apart from plastics the company produces a variety of industrial chemicals and specializes in the production of synthetic bers. The rumors persisted despite denials of any secret negotiations made by spokesmen for both fums. Alpha employees were worried since Colmar was reputed to have a ruthless and driving management interested only in efciency ad prots, and they feared the results of any such merger. Those employed on production of synthetic bers were particularly apprehensive. SpeCulation intensied when importanthlooking strangers were seen being escorted round the Alpha factories. No ofcial explanation of their status or function was given but employees noted the deference with which they were treated and word spread that the visitors were 'the new bosses'. The Alpha management had always made a practice of keeping their employees fully informed about matters affecting the rm and their work. The present secretiveness and consequent spate of rumors led to a steady lowering of morale, there being a feeling of resentment that the management was not prepared to take staff into its condence, coupled with a conviction that every employee had a right to know about matters which might vitally affect his future. 4. ACTION BY PERSONNEL : Alan COWSley, Alpha's Personnel Officer, reported to Knight and Tracey, Joint Managing Directors, that unrest was becoming serious particularly in the synthetic fibers section where men were beginning to look for jobs elsewhere. Knight explained that talks between the two furns were at a delicate stage and secrecy had been agreed by both sides until some real progress had been made. It was regrettable that news of the talks seemed to have leaked out. SecreCy at this stage had been deemed in the best interests to all parties, including the employees. 5. STATEMENT ISSUED BY KNIGHT : As a result of strong pressure from Cowsley and, after consultation with the Colmar directors, Knight issued the following notice to all staff: Talks of an exploratory nature are being conducted with the Colmar Chemical Company to consider the benets which might accrue from a merger of interests. Such a proposal presents a variety of problems and at this stage much of the discussion must remain condential. Whatever the results of these talks may be, the Board will at all times consider the best interests of the rm and its personnel. This statement did little to alleviate the unrest. Comment in the nancial press suggested that the proposed amalgamation had already been agreed in principle. At the Alpha plant it was rumored that senior managers who owned shares had received a notice from the Chairman of the Alpha Board advising them to accept an offer made by Colrnar. 6. MERGER ANNOUNCED: Some weeks later the newspapers armounced details of a proposed merger between the two rms. On the morning of the press release, notices were posted at the Alpha factories informing