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