New Work Organisation ETUC Conference “Challenging Times” 17th November 2005 Presented by Larry Lynam SIPTU Shop Steward

1. New Work Organisation ETUC Conference “Challenging Times” 17th November 2005 Presented by Larry Lynam SIPTU Shop Steward

2. 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

3. 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)

4. 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

5. 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

6. 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

7. 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

8. Partnership Structure I.R. T.M.F Management Trade Unions Partnership Forum Diagnostic Steering Group T.T. T.T. T.T. T.T.

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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