New Work OrganisationETUC Conference “Challenging Times”

17th November 2005

Presented by Larry LynamSIPTU Shop Steward

Tegral Metal Forming is a supplier of metal components and Systems for roofing, cladding and

flooring.

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Company Background

• Manufacturer supplying profiled steel sheeting and accessories to the Construction Industry

• Established as a subsidiary of the Tegral Group in 1977

• Wholly owned subsidiary of the ETEX Group (Privately held Belgian Multinational)

• 80 employees: 50 in manufacturing and 30 in management, sales and administration

• Union membership: SIPTU(68) and TEEU(2)

Background to Partnership

• History of good but adversarial relations• Overtime compensation agreement for

new technology prompted search for alternative forms of development

• Agreed to participate in New Work Organisation Programme (NWO)

• Diagnostic carried out by consultant from the Irish Productivity Centre in late 1997

• Formed a steering Group with diagnostic acting as terms of reference

Industrial Relations

Management

Union

Joint DecisionsConsensus

Management•Decision Makers•Control•Strategy•Problem Solvers•Organisers

Union•Hands & feet•Protectors•Vulnerable•Low skilled•Negotiators

Adversarial ApproachNegotiated Settlements

Compromise

• Historical Approach

• NWO Approach

Goal of Partnership

Higher Skilled Employees Better Educated Employees

Higher Paid Employees Higher Participation

Goal Better than the competition

Able to develop new products and processes Able to adapt to market changes more

rapidly Increase profitability and secure long term

viability

Work Organisation

MD

Materials,

Accounts &

C.C. Team

Incoming Goods Team

Sales &

Marketing Team

Marketing

Admin. Sales

Technical & NPD

New Product Development

Specification Technical Support

Engineering &

MaintenanceTeam

Manuf’ingTeam

Logistics Team

Customer

Service Team

Systems Development

& Support

Partnership Structure

I.R.

T.M.FManagement

SteeringGroup

TradeUnions

Diagnostic

T.T. T.T.T.T. T.T.

Partnership Forum

Work Organisation

Unions

SIPTU - Clerical SIPTU - General TEEU

Non-UnionManagement

Task Teams (4)Permanent Teams (13)

Facilitators (3) Steering Group

Partnership Council

Manufacturing (4)

Logisitcs (2)

Customer Service (1)

Operations (2)

Technical (1)

Sales (1)

Safety First

Scrap

Monitoring Team

H&S Committee (1)

Systems

Other Teams

Scrum

Partnership Co-ordinator

Recruitment & Personal Development

SDS Committee (1)

Elements of Change

• Extensive use of external facilitation• Partnership - ICTU, SIPTU, IPC• Facilitation• Team Working• Mentoring

• Introduction of Team Working, Team Leaders and KPI’s

• Significantly increased spending on training

• 1999 < 1% Payroll ; 2004 > 5% of Payroll

• Cross-skilling and up-skilling of employees

Elements of Change

• Introduction of new reward systems• Skill based pay• Gain sharing• Profit sharing• Annual time contracts• Flexi-time• Part-time Working

• Introduction of structured appraisal system

• No redundancy, no loss of guaranteed earnings

Key Learning Points

• A new way to do business

• How to build a framework to let everyone have a say

• Need to learn to trust the process

• Partnership needs to be seen as permanent rather than “temporary little arrangement”

• Need for leadership at the highest level in the Union as well as Management

• ICTU, SIPTU Central & Regional, TEEU

Key Learning Points

• Change must be based on clearly defined, measurable objectives

• Improved Business Performance

• Major culture change, very slow process (not suitable in crisis situation)

• Started in 1997

• Need a Champion from both Partners

• Apathy is the biggest enemy• passive participation

Key Learning Points

• Importance of ensuring reward systems are complimentary

• Skill Based Pay was very effective• Difficulties with Gainshare System - 3 revisions

• Difficulty in moving on from “Pioneer” phase (danger of losing touch)

• Underestimated desire for stability

• Desire to have more say v’s tendency to choose easy option

Key Learning Points

• Need for Clarification of Roles• Management Lead• Team Leader Facilitate• Team Member Participate

• System is as important as Structure

• Importance of recognising skill gaps

Impact of Change

• Improved Safety performance• 1999 - 16 accidents, 230 days lost• 2004 - 4 accidents, 45 days lost

• Cost Neutral• Increased Basic Earnings• Static Volumes• Maintained Strong Profitability

• Increased Productivity & Flexibility• Inclusive Capital Investment• Increased output, reduced employee numbers• Focus on New Product/Business Development

Impact of Change

• Reduced Customer Complaints• Initially negative due to up-skilling• 55% reduction

• Improved Customer Service• Reduced Lead Times• 96% on-time delivery

• Introduced new ERP System

• Achieved “Excellence through People” Award

Next Step

• Widen ownership of process

• Move focus away from people issues to task issues

• Become more self-sufficient, reduce dependency of external facilitation

• Realise more consistent performance from all teams

Next Step

• Develop an ingrained culture of continuous improvement and change

• Continue to increase employee skills, education and qualifications

• Back up Culture with integrated and practical operational systems