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agreements reached with the unions. The last formal agreements that you can find are
now all over 18 months old.
Partly as a result of this vagueness over wage agreements, pay has slipped badly behind
the average for the district, at around 85 per cent, indicating clearly that the workforce in
contrast to the management had received wage settlements considerably below the
inflation rate. This meant that a great deal of pressure had built up in the current wage
round for a substantial upward movement in wage rates. This would of course have an
extremely deleterious effect on the already poor profitability of the company. Wage levels
were further complicated by the fact that bonus levels varied considerably from department
to department, with no clearly stated policy as to how they were calculated or evaluated.
The changing type of work in which Burke Engineering was involved, in common with
many other industrial concerns, had meant that there was a far greater need for flexibility
in the workforce, and that it was inevitable that, in the near future, new production
equipment would have to be installed which would cut across traditional skill areas
represented by the three unions.
It was likely that drastic action would have to be taken as a result of the detailed review
that you have just started on company products and manufacturing policy, but you are
aware that this is likely to meet with major resistance from the unions.
Union Structures and Agreements
To complete your file on the background to the relationship with the unions you have the
following information about union membership and agreements.
AEU.
This union, with 52 members, contains a high proportion of the more skilled workers. The
two shop stewards were both supervisors in the plant, and one, A Waring, had previously
been considered for promotion to deputy plant manager. Both had thorough training in
negotiation from the union, and were long serving employees of the firm. The AEU was
currently negotiating on a claim for modification of overtime rates which had been
submitted a month before your arrival they had also complained repeatedly about the
working conditions in the tool-room.
AEU agreement.
Introduction. The AEU made a claim for a wage increase for all their members who are
hourly paid male and female. The management and the representatives of the Union held
meetings on the 3rd, 6th, and 12th January to discuss the claim.
Arising from these meetings it was decided:
Productivity. It was agreed by the Union that present production targets and working
methods needed to be re-organised to bring about increased efficiency. Members of the
Union welcome the steps that Management are taking to introduce new patterns of
working, recognising that these changes will increase the skills and the earning capacities
of their members. They are therefore willing to cooperate fully in these new working
practices.
Wage increases. In return for this cooperation, the Management has agreed to rapidly
process the Union claim for an increase of 20 in the basic wage or 10 per cent of the
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