“People Involvement and Workplace Cooperation for Quality”p Q y

(The Case of Universal Robina Corporation,( p ,Philippines)

J C Gatchalian, PhD

Presented at the 55th EOQ, Budapest, Hungary June 2011June 2011

Workplace Cooperation inWorkplace Cooperation inWorkplace Cooperation inWorkplace Cooperation inUniversalUniversal RobinaRobina Corp.Corp.BC Food GroupBC Food Group (PHL)(PHL)BC Food GroupBC Food Group (PHL)(PHL)

H04/7684

URC PhilosophyURC Philosophy “As we grow our“As we grow ourURC PhilosophyURC Philosophy –– As we grow ourAs we grow ourbusiness, we grow our people.”business, we grow our people.”

URC StrategyURC Strategy transform work relationstransform work relationsfromfrom ConfrontationConfrontation toto CooperationCooperationpp

URC Case TimelineURC Case TimelineURC Case TimelineURC Case Timeline

Before 2000 2001 2008 2009 onwards

OPENING OF

GROWTH

STORM ANDSTRESS

MINDS

STRESS

19901990 2000 Storm and Stress Period2000 Storm and Stress Period19901990 –– 2000 Storm and Stress Period2000 Storm and Stress Period

Eff i i LMC f l d• Efforts in structuring LMCs unsuccessful due to:a) lack of idea and knowledge of what anLMC f l k l i iLMC or formal workplace cooperation isb) lack of readiness of the group

• Due to conflicts at the workplace,) d ti it ff t da) productivity was affected,b) product complaints increased) di i lic) disciplinary cases were many

URC Story PeriodsURC Story Periods

before 2000 2001 2008 2009 onwards

GROWTH?

STORM AND

OPENING OFMINDS

STRESS• Roadshows conductedby Department of Trade

• UnstructuredWorkplace Cooperation

and Industry (DTI)

• Partnership Workshops

• Composed mainly ofmanagement andunion officers

• Setting up of formalWorkplace Cooperationand Labor Mgt. Councils

FILM SHOWING(10 minutes)

•CCommittedd too Change•CCommitted to Change•HHow to set up an LMCp

THE PROCESS AND STRUCTURE OF LMC

Quality Partners Company Ltd.

Labor Management CouncilsLabor Management Councils( URC BCFG( URC BCFG i id )i id )(across URC BCFG(across URC BCFG –– nationwide)nationwide)

Provincial PlantsMetro Manila Plants

Pampanga

Tarlac

Head Office

Rosario

Cavite

Calamba

Bagong Ilog

Libis Calamba

Canlubang

San Pedro

Conbar

San Pedro

San Pablo

Nissin URCNissin URC

Cebu

Cagayan de OroCagayan de Oro

Nationwide, URC plant level LMCs in 16 geographical locationswere assisted in realigning their programs along 3 directions:were assisted in realigning their programs along 3 directions:doing the right things, doing them right and doing them better!

i h i h hi i i i h h l hi j lA. Doing the Right Things: activities that help achieve major goalsshared by the workers and the employer, Ex: mutually beneficial,value adding projects to improve productivity, quality of productsor services, profitability & competitiveness (effectiveness).

B. Doing Them Right – activities that achieve results economicallyg g yand productively, thru the involvement and participation of all.Ex.: short but fruitful meetings of LMC committees, joint studyand problem solving sessions to resolve issues and concerns, andand problem solving sessions to resolve issues and concerns, andinsuring that actions agreed upon are carried out (efficiency).

C Doing Them Better applying modern tools & techniques forC. Doing Them Better – applying modern tools & techniques forcontinual improvement, utilizing quantitative measurement andstatistics for problem solving, using P D C A strategy andd t ti ( lit )documentation (quality).

Quality Partners Company Ltd.

20012001 2008 Opening of Minds2008 Opening of Minds

• Conduct road shows gearedto educating employees on:how an LMC should operateh t i t i d l ihow to assist in developing

harmony at the workplace

• Strengthen partnership withStrengthen partnership withUnions in unionized plants, orwith employee committees inp yplants without unions.

URCURC LMC StoryLMC Story

before 2000 2001 2007 2008 onwards

GROWTH

STORM AND STRESS

OPENING OF MINDS• Learning sessions andworkshops with Quality

• Roadshows conductedby Department of Trade

Partners Company Ltd.and DOLE NCMB

• Revision of by laws and• UnstructuredWorkplace Cooperation

and Industry (DTI)

• Partnership Workshops

• Revision of by laws andreview of subcommitteesto further address theneeds of the employees

• Composed mainly ofmanagement andunion officers

• Creation of formalWorkplace Cooperationstructure and process

needs of the employees

• Focus on long termpartnerships

20082008 –– Present GrowthPresent Growth

Learning sessions and workshops conducted by:• Drs. J. & M. Gatchalian, Quality Partners Company Ltd.• Dept. of Labor and Nat’l. Conciliation/Mediation Board

• Gave groups newinsights and skills;• strengthened theset up of formalset up of formalLabor ManagementCouncils (LMCs)Councils (LMCs)

20082008 –– Present GrowthPresent Growth

Through partnership between Management andEmployees in LMCs, various projects were set up:

•Employee Engagement•Employee Welfare•Community Relations•Quality & Productivity•Health & Safety•Grievances & Discipline

20082008 P t G thP t G th20082008 –– Present GrowthPresent Growth

URC/LMC earned awards & citations/from different institutions:

•Best LMC Regional, 2009 byDOLE NCMB & STAR LMCAI

LMC S i l A d 2009•LMC Special Award, 2009(Best on Unique StrategicPartnership) PHILAMCOP

•Invited by DTI to present BestPractice in PQA in BataanEconomic Zone July 30 2009Economic Zone, July 30, 2009

The Key Ingredients:The Key Ingredients:

CCOMMUNICATECCOMMUNICATE……

COMMUNICATEE COMMUNICATE…COMMUNICATE…

& PARTICIPATE!

Best PracticesBest Practices

SOBMSOBM• Bi annual activity• State of the Business• State of the Business• State of the People• Open Forum

Business expansions

Career DevelopmentOpen Forum

Best PracticesBest PracticesBest PracticesBest Practices

Bi Annual Performance Reviews

Quarterly Corporate Publication

Monthly Salu salo with the EVP MDMonthly Salu salo with the EVP MD

Monthly Kapihan with the OM

Shop Floor Meetings

Best PracticesBest Practices

Annual OSQC Alignment Conference; KPI Setting

Quarterly Get together with the UnionQuarterly Get together with the Union

Monthly Plant Ops Review

LMC Planning Workshop

Monthly Committee MeetingMonthly Committee Meeting

HR Bulletin Email Blasts

ll dBulletin Boards

Fruits of URC PartnershipFruits of URC Partnership

• Higher employee productivity

• CBA Negotiations concluded in• CBA Negotiations concluded inan average of 2 meetings

i i li d O h•Disciplinary Issues and OtherConcerns resolved at Plant Level

Fruits of our PartnershipFruits of our Partnership

Engagement Rating : 78%

F f pF f p

Engagement Rating : 78%

REVENUE:

2004 2005 2006 2007 2008 2009

Employee Engagement Rating : 78%Employee Engagement Rating : 78%

• ”Alam ko kung ano ang inaasahan mula sa akin sa aking trabaho ”• ”Alam ko kung ano ang inaasahan mula sa akin sa aking trabaho.”

• “I know what is expected of me in my work.”

• “Sa nakalipas na taon, nagkaroon ako ng pagkakataong matuto at umasenso saaking trabaho.”

• “Last year, I had a chance to learn & progress in my work.”

• ”Sa aking trabaho, napahahalagahan ang aking mga opinyon.”

• “In my work, my opinions are valued and considered.”y y p

• ”Sa tingin ko, may pagmamalasakit sa akin ang aking lider o ang isangkasamahan sa trabaho.”

• “I think my leader has concern for me & my fellow workers.”

Our continuing journeyOur continuing journeySUSTAINABLEGROWTH FOR LONG TERM:

SSHORT-TERMEVENTS LONG TERM

•Solicitation

•People•Productivit

EVENTS: LONG TERM

on•Sports•Socials

•ProductivityP d tt Socials •Product

Quality•Profitability