Labor Management Collaboration Applications
 

Improved Productivity/Quality

Labor management collaboration strategies have been instrumental in improving productivity and quality in a number of other organizations. One county nursing home was experiencing a large number of absenteeism and sick leave abuse problems. This increased overtime costs and necessitated employees working in “short-staffed” situations. Interestingly, labor representatives initially raised this issue. The Union identified that sick leave abuse was posing a tremendous problem for the conscientious employees. While some overtime was appreciated, the excessive amount had become a burden. The Union was concerned about providing due process for potential offenders. The union was also concerned that the conscientious employee was not disadvantaged.

The parties worked together to analyze the problem. It was clear that absence rates were higher among new employees than the seasoned veterans. It was also clear that many of the new employees were working the third shift and weekends. Working together, the parties improved the new employee orientation process stressing the need for regular attendance. Further, a new employee mentoring program was put in place. In this program, veterans were matched with new employees so that the newcomer had a ready contact in the event problems developed. The parties believed that this positive peer influence would be helpful in a number of areas, in addition to attendance.

A point system program for absences was developed on a trial basis. Not unlike other point based systems, absences resulted in the accumulation of points. At specific levels, warnings and other discipline occurred. The union and management were able to build in safeguards that helped protect employees who were experiencing “legitimate” problems that caused absences. Economic incentives for good attendance were also introduced. Union and management felt that it was important to meaningfully recognize good attendance. The effectiveness of this absence reduction program was due in large part to the cooperative approach utilized by labor and management. Labor and management representatives jointly implemented the program, trained employees and took a united position against absenteeism while protecting individuals with legitimate attendance issues.

In another instance, the Sanitation Department of a large municipality was heavily criticized because of rising costs. In a response to the criticism, management began exploring private contracting alternatives. Management had retained the right to subcontract this work and it appeared to many that this might be the only way to meaningfully reduce costs while maintaining service. Prior to implementing a contracting alternative, labor and management met to discuss the problem. It became apparent that the higher costs were directly related to the use of 3 or 4 employees per truck.  

On a trial basis, the parties agreed to automate aspects of the process. One area of the city eliminated the use of garbage cans and substituted carts. The wheeled carts were able to be positioned and dumped through an automated lifting process. With this new equipment, the size of the crews was dramatically reduced to one or two employees per truck. While there was some initial equipment expense, it soon proved to be a money-saving venture. In addition to the staff reductions, injuries were greatly reduced.

Management had agreed at the onset of the cart program that current employees would not be laid off if it proved successful. The commitment to adjust staff based on attrition was necessary to gain membership support. After the initial success of the program, it spread to other areas of the city until it was fully implemented. Employees liked the new aspects of the job including the reduced physical burden and fewer injuries. While union membership was reduced, it occurred through attrition leaving a secure group of employees. The alternative would have been to negotiate severance and layoff benefits prior to the elimination of all positions. This agreement to modify the process worked to the benefit of everyone involved including the taxpayers.

The Department of Public Works in another municipality was attempting to deal with aging equipment. Following a traditional approach, management recommended that a new chipper be purchased as part of the budget process. Management representatives explained during the budget process that the current chipper was not doing an adequate job of shredding brush and tree limbs. Because of this, the efficiency of crews was greatly reduced. While a good case was made for the new chipper, the common council rejected this request.

The department supervisors and employees felt very strongly about this matter and decided to work cooperatively in an effort to reach their goal. Labor and management researched chipper alternatives, evaluated efficiency and analyzed accident reports. In order to better make these points to the common council, they jointly produced a video that showed the operation of the existing chipper. The video showed how material frequently jammed and often discharged pieces striking employees. The parties demonstrated the suggested replacement. The video showed the dramatic increase in productivity and safety. While the employees jokingly said that they would miss the opportunity to dodge rejected chunks of wood, they thought they would be able to adjust.

After reviewing this joint presentation, the council overwhelmingly endorsed the purchase of the new chipper. In addition to having a safer and more efficient piece of equipment, labor and management were able to experience tangible benefits that working together provided. Both the supervisors and employees were pleased that the common council valued their opinions and insights. This project provided a basis for continued cooperative ventures.

The Building Inspection Department of a large municipality began a labor management collaboration effort as a result of suggestions provided by employees. It was felt that there were numerous areas in which labor and management could cooperate for the benefit of all. Code enforcement had been an area of frustration for both labor and management. By working together, a process was created that helped deal with the volume of code complaints. A new system was created in which property owners received advisory notices rather than work orders. The department found that almost 50% of the issues were resolved without the need of issuing work orders. Inspectors were only sent to sites if there was no compliance after the advisory notice. This had a positive impact on the workload of the building inspectors by focusing their efforts on the more difficult code compliance issues.

A water utility expanded the preventative maintenance (PM) program as a result of labor management collaboration. The limited PM program initiated by management had been very helpful. At the urging of the department labor/management committee, the PM program was expanded into many additional areas. This resulted in larger savings, fewer equipment breakdowns and less process interruption. One of the many changes included the movement of a valve controller. After reviewing various operational records, the joint committee became aware that the controller was located in a confined space, which was difficult to reach and created safety hazards. Also, after studying maintenance logs, it became apparent to the joint committee that when flooding occurred, the controller would need to be replaced. After reviewing this situation, it became obvious to all that relocating the controller would increase reliability, effectiveness and the safety of employees required to perform the work.

Workplace Problems

LMC strategies can be very helpful in addressing a variety of workplace problems.

One school district used a collaborative approach to resolve budget problems at one of the middle schools. This particular school district had been using collaborative strategies to negotiate labor contracts for a number of years. A middle school assistant principal, who had been a member of the bargaining team, saw great value in using this process to address issues at the school level. His principal and building teacher association leadership were also supportive. Training was provided to the school staff and several students during one of the district inservice days.

Because of significant financial difficulties, budget reductions needed to occur throughout the district, including the middle schools. Middle school teacher association leaders and management wanted to work together to best meet the needs of the school. They concluded that, while this was an unpleasant matter, they knew the situation better than others. Working together, they made the necessary reductions while causing the “least amount of damage”. While the financial dilemma was very troublesome, all parties felt that with the input of the school staff they had done the best job possible. The openness, candor and commitment exhibited during the process had positive impacts on staff morale during this difficult time. It should be noted that the district’s other middle school took a traditional approach to the financial problem with management making the budget reduction decisions independently. The teachers and staff chose not to participate in the process. Predictably animosities developed, decisions were undermined and students suffered.

Earlier when discussing improved productivity and quality, the nursing home joint labor management absence reduction program was mentioned. As part of this effort, research related to absences was conducted. The group concluded that the attendance problem significantly increased during third shift and weekends. While working to improve efficiency through improved attendance, it became evident that another problem existed. A peripheral benefit of the absence reduction program effort was the realization that alternative scheduling needed to be considered. The labor management group explored some creative scheduling alternative.

It was believed that some individuals in the community might wish to work in a part-time capacity over the weekends or in the evenings. Part-time positions were created for third shift work. Also, some part-time positions were created for Fridays and Saturdays. Union and management representatives participated in job fairs and open houses to recruit members of the community into these new part-time opportunities. The parties found that there were a number of families in the area that wanted to supplement incomes on a part-time basis. Teams of union and management provided training to these new part-time individuals, as well as, continuing the joint new employee orientation. This utilization of part-time employees helped reduce full-time employee turnover, provided improved services and reduced the burden on conscientious employees who previously had been asked to work excessive amounts of overtime and in short-staffed situations.

Another labor management group dealt with a workplace problem related to hours of work. A number of employees had been experiencing childcare and other scheduling problems. The normal hours of the department had been from 8:00 - 4:30 p.m. The labor management committee had concluded that some changes could occur that would benefit both labor and management. On a trial basis the committee experimented with variable start times. In this experiment, employees could start an 8 hour shift between the hours of 7:00 a.m. and 9 a.m. This flexibility proved very helpful for individuals who had child care, educational or other scheduling needs. Management found that by implementing this variable start time, the hours of the office were extended by 2 hours each day which provided greater access to taxpayers. After the initial success of this scheduling change, the parties explored job-sharing arrangements for some of the positions. The job sharing arrangement provided various flexibilities for management and employees alike.

Some labor management committees have utilized interest based strategies to resolve various types of workplace conflicts. Assisting parties in disputes to clarify interests helps remove some of the emotion from the situation. Having an agreed upon step-by-step process also adds order to potentially volatile situations. If problems develop, parties can refocus on the particular step of the process during which difficulties arose. Often parties to a dispute are uncertain about how the problems developed or what they truly want to happen. This step-by-step interest based process helps provide order, work environment predictability and quality solutions to difficult problems.

Work Environment

In addition to improving productivity and addressing workplace problems, effective LMC efforts can help improve the overall work environment. Applying these principles can be very helpful in job redesign matters. The previously mentioned sanitation department example greatly reduced the stress and strain associated with refuse collection. Injuries were greatly reduced. The previously mentioned DPW road-patching job was made easier and more effective by redesigning the way in which employees obtained hot patch materials. Instead of reaching into the back of a truck with a shovel, a tray positioned at knee level was added to the trucks. Productivity increased and injuries decreased. While this positive change may have seemed obvious after it was implemented, it only came about as a result of an effective labor management collaboration effort.

Many labor management collaboration efforts have been instrumental in improving safety of the workplace. After all, the employees who are actually performing jobs on a day-to-day basis know them best. This wealth of information can be tapped to make important improvements. Improved lighting, changing work design, ensuring that safety equipment is used, are ways in which committee’s can contribute to an improved work environment.

While improving productivity, addressing workplace problems and improving the work environment are important, the process involved in doing these things also leads to increased employee morale. Morale improves when employees feel valued. Morale improves when individuals can see that their input is received and implemented. Effective teamwork and collaboration improves morale. Working in a positive, productive and meaningful environment helps everyone.

Private Sector Application

A chapter of the National Electrical Contractors Association (NECA) and the International Brotherhood of Electrical Workers (IBEW) applied interest based strategies in several ways. Both groups were very concerned about losing market share. Numbers of non-union electrical contractors were surfacing and taking work that previously had been performed by union contractors and IBEW members. The groups had concern that if this loss of market share continued, it could lead to layoffs and undermine the economic viability of area union contractors.

The relationship between union contractors and the IBEW had been problematic at times. Non-union contractors advertised that customers did not need to deal with labor disruptions and expensive labor contract provisions. The NECA and IBEW chapters concluded that it was very important to change their relationship, improve overall effectiveness and increase productivity. The parties participated in interest based training with the idea that it could be applied in many situations. They began a series of meetings that were entitled “Mutual Gains Meetings”. Specific objectives of their initiatives included increasing market share, providing employment security, increasing profitability and increasing wages. While there was significant skepticism on the part of both groups, the groups agreed to meet on a regular basis to address these objectives. The parties brainstormed a list of industry problems. Using a consensus approach, the group decided to address field productivity problems first. By applying the interest based process, several approaches were developed. The efforts of the group resulted in revised and improved foreman training which helped in job pre-planning and estimating. Other productivity-based areas were added to the foreman curriculum. The revised and improved foreman training programs helped increased field productivity.

As progress occurred with mutual gains meetings, the parties planned a joint advertising campaign. Working together, ads were created that emphasized the benefit of using union contractors and union labor. The ads emphasized the value and quality of union apprenticeships and foreman training. A newsletter was created to inform contractors and electricians about the activities of the mutual gains meetings. Over the course of two years, progress was noted through increased work going to union contractors. Also, a number of non-union firms became union contractors with electricians joining the IBEW.

The increased work and market share success gave rise to the next issue to be addressed which was a manpower shortage. The parties also applied interest based strategies to address this issue.

The parties later decided to use the interest based process to negotiate a soon to expire contract. Through hard work and diligence, the parties were able to reach a voluntary agreement without using the national dispute resolution process which had been relied upon for many prior contracts. The groundwork and relationship building that occurred during the mutual gains meetings were instrumental in reaching the negotiated agreement. The contract was approved overwhelmingly by NECA members and the IBEW electricians.

Has the relationship been without problems? No. Have the parties been able to rise above those problems by using an interest based approach. The answer is an overwhelming “yes”.