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New Work Organisation ETUC Conference “Challenging Times” 17th November 2005 Presented by Larry Lynam SIPTU Shop Steward. Tegral Metal Forming is a supplier of metal components and Systems for roofing, cladding and flooring . Insulated Roofing & cladding. Composite Flooring. Flat Roof
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New Work Organisation ETUC Conference “Challenging Times” 17th November 2005 Presented by Larry Lynam SIPTU Shop Steward
Tegral Metal Forming is a supplier of metal components and Systems for roofing, cladding and flooring. Insulated Roofing & cladding Composite Flooring Flat Roof Decking Single Skin Purlins
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
Historical Approach Management • Management • Decision Makers • Control • Strategy • Problem Solvers • Organisers • Union • Hands & feet • Protectors • Vulnerable • Low skilled • Negotiators Joint Decisions Consensus Union Adversarial Approach Negotiated Settlements Compromise Industrial Relations • 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
Admin. Sales Engineering & Maintenance Team Sales & MarketingTeam Marketing Manuf’ing Team Incoming Goods Team Customer ServiceTeam Logistics Team Materials, Accounts& C.C. Team Specification Technical Support Technical & NPD New Product Development Work Organisation Systems Development & Support MD
Partnership Structure I.R. T.M.F Management Trade Unions Partnership Forum Diagnostic Steering Group T.T. T.T. T.T. T.T.
SIPTU - Clerical SIPTU - General TEEU Unions Management Non-Union Partnership Co-ordinator Partnership Council Facilitators (3) Steering Group Permanent Teams (13) Task Teams (4) Other Teams Recruitment & Personal Development Manufacturing (4) Systems Logisitcs (2) Safety First Scrum Customer Service (1) Scrap Sales (1) Monitoring Team Technical (1) Operations (2) H&S Committee (1) SDS Committee (1) Work Organisation
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