Developments in Skilled Trades: A Report on European Auto Plants

Transcription

Developments
in Skilled Trades:
A Report on
European Auto Plants
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Big 3 Skilled Trades Study Tour
February 2002
SKILLED TRADES STUDY TOUR
From September 24 to October 3, 2001 we were part of the Big Three skilled trades study tour in
Europe. The issues which we were to explore included:
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new technology and technical training
apprenticeship
new skilled trades work
work organization in the trades (structure, demarcation, relationship to production
workers, etc)
worktime and other collective agreement provisions,
company operating systems (TPM)
In ten days we visited nine workplaces in three different countries. While it was intense and our time
in some locations was short, we did get an opportunity to tour plants and training centres, to walk
the floor, talk with workers, meet local union reps and, on occasion, to interview management. In
addition to formal briefings, we benefitted greatly from the chance to discuss issues with local union
reps, works councillors, union staff and leadership.
Our union hosts were great. More than coordinating our plant visits they welcomed us at dinners,
arranged transportation to the plants, conducted city tours and were open to our countless
questions and debates — even after we had returned home.
What follows is the report of our study tour. It is written in two parts. The first volume provides a
commentary and a summary of our observations while the second volume contains our case study
notes on each of the workplaces we visited.
We are grateful to our union for the opportunity to be part of this study tour. We have come back
more knowledgeable about other places but also more aware of our own achievements, prouder
of our accomplishments and with some ideas for moving forward.
DELEGATES
Robert Crew, Local 1285 - past chairperson, CAW-DCX Master Skilled Trades committee
Jean-Pierre Daubois, GM, Skilled Trades Chairperson, Local 1163
Tim Murphy, Local 200, Chairperson, CAW-Ford Master Skilled Trades Committee
John Scanlan, Local 222, Chairperson, CAW-GM Master Skilled Trades Committee
Mark Desjardins, Skilled Trades Union Education Co-ordinator (GM)
Colin Heslop, Skilled Trades Union Education Co-ordinator (Ford)
Tony Leah, Skilled Trades Union Education Co-ordinator (GM)
Rick Smith, Skilled Trades Union Education Co-ordinator (Chrysler)
Bruce Roberts, Workplace Training Co-ordinator
John Bettes, Director, Skilled Trades
David Robertson, Director, Work Organization & Training
Facilities Visited:
Vehicle Assembly Plants:
GM’s Opel Rüsselsheim Plant, FRG
GM’s Vauxhall Ellesmere Port Plant, U.K.
GM’s Saab Trollhättan Plant, Sweden
Ford Jaguar Halewood Plant, U.K.
Ford, Cologne, FRG
Heavy Truck Assembly Plants:
Volvo Tuve Truck Assembly Plant, Göteborg, Sweden
Engine Plants:
Ford Bridgend Plant, Wales, U.K.
DaimlerChrysler Untertürkheim Plant, Stuttgart, FRG
Research and Development Centres:
Ford Transmission Prototype Centre, Cologne, FRG
Volvo Engine Research and Development Centre, Göteborg, Sweden
Apprentice Training Centres:
Ford, Cologne, FRG
DaimlerChrysler, Stuttgart, FRG
TABLE OF CONTENTS
Chapter 1: Restructuring in the European Auto Industry . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mergers and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restructuring - Capacity Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pressure on Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Move to Modular Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Chapter 2: Developments in Skilled Trades Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5
Outsourced Work: Vendor Maintenance and Construction . . . . . . . . . . . . . . . . . . . Page 5
Operating Systems and the Shift in Skilled Trades Work . . . . . . . . . . . . . . . . . . . . Page 6
Skilled Trades Integrated in Production Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 9
Lines of Demarcation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10
Moving Into Non-traditional Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 11
Wage Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12
Chapter 3: Apprenticeship and Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 14
Skilled Trades Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 17
Chapter 4: Investment and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vehicle Assembly Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Press Shops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Engine Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Chapter 5: Union Structures and Union Fightbacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Germany: The Dual System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sweden: The Pressures on National Bargaining . . . . . . . . . . . . . . . . . . . . . . . . . .
England and Wales: Multiple Unions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Union Fightbacks and New European Forums . . . . . . . . . . . . . . . . . . . . . . . . . . .
Case Study: UK Fightbacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Chapter 6: Collective Agreement Comparisons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vacations/Vacation Bonuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collective Agreement Comparison - Part 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collective Agreement Comparison - Part 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shift Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Chapter 7: Concluding Observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 33
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Industrial Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plant Restructuring: Modular Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Outsourcing and Contracting Out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating Systems and Production Maintenance . . . . . . . . . . . . . . . . . . . . . . . . .
Trade Integration with Production Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lines of Demarcation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New Skilled Trade’s Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wage Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Apprentices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Union Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Chapter 1: Restructuring in the European Auto Industry
Our skilled trades study tour of auto plants and unions came at a time of major auto
industry restructuring. Across Europe, overall vehicle sales continue to weaken. In
Germany, Europe’s largest vehicle market sales are down by 11%. Slowing sales have
meant tumbling profits for a number of European automakers. Along with slower sales
there has been an increased penetration by Japanese automakers. And there is
increased segment by segment competition as automakers build products in all
segments.
Car makers are constantly jockeying for position. As fuel prices skyrocketed customers
turned to diesel engines. As customers switched to diesel some companies were caught
with few products to offer. As competition heated up in one product segment after
another some companies were hit hard by missing out on market shifts.
Behind these particulars there is the growing problem of overcapacity, already estimated
at around 20%. Across Europe, the auto manufacturers are responding by:
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slashing production capacity through plant closures and eliminating shifts;
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selling off divisions outright;
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undertaking mergers and joint ventures(GM/Fiat to share powertrains,
Ford/Getrag to share development of transmissions, etc.);
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forcing a string of voluntary redundancies (for example, 2,500 at Rover in
the U.K., 5,450 at Ford and Vauxhall); and,
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bringing out new models more quickly by investing in new “flexplants”.
There are three underlying trends which are shaping European auto production:
1)
Mergers and acquisitions continue to reduce the number of major auto
producers and strengthen the economic clout of those companies.
2)
The majors are pushing to reduce capacity, while at the same time
increasing productivity.
3)
These fewer, more powerful companies, are using their ability to close
plants to pressure unions into accepting “flexible contracts” that include
provisions for “supplier parks”, as well as modified work rules and in some
cases, reduced wages.
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Mergers and Acquisitions
The increasing domination of the auto sector by a smaller number of companies has
been assisted by the creation of the European Economic Community. The most drastic
shifts have occurred in countries like the UK and Sweden which once had significant
domestic auto industries but are now completely dominated by US, German, and Asian
owned corporations.
Sweden was once seen as a model of a small country that could maintain its own
domestic auto industry, but now Volvo is owned by Ford and Saab is a GM subsidiary.
In the UK, Jaguar and Land Rover were purchased by Ford, Rover by BMW. And
Volkswagen beat out BMW in the takeover of Rolls Royce/Bentley.
Restructuring - Capacity Reduction
These major auto producers see their plants in the context of their European, or even
world, strategies. In all three countries the unions talked about GM’s “Olympia” project a plan to reduce European production by some 350,000 units annually. GM used its
ability to close plants or reduce production and shift it elsewhere to their own advantage.
They demanded a “flexible agreement” in exchange for promising the “Epsilon” model
to the Luton Vauxhall plant in 1998. But this year they broke that promise, announced
the drastic downsizing of the Luton plant, and said the “Epsilon” would be built in
Ellesmere Port. And they forced workers at Ellesmere Port to take over the ‘flexible
agreement’.
Similarly, the Opel plant in Russelsheim, Germany is also getting the Epsilon platform
based on a 1998 agreement with IG Metall. A Union leader described the new plant as
a “leanfield site” and described it as similar to what GM had proposed in the U.S. under
the Yellowstone project and what GM is doing in Brazil in the ‘Blue Macaw’ project. The
agreement provides a small wage reduction, more modularization, a supplier park, and
fewer workers.
Pressure on Workers
Corporate power translates into increasing pressure on jobs, wages and negotiated
working conditions. In every location we visited there was new investment - but with it
the corporations had demanded and usually achieved some form of “flexible contract”
or “modern operating agreement”. In some cases, such as GM’s Opel plant in
Rüsselsheim, there were minor wage reductions. Volkswagen, in one situation, was
even able to get union agreement to rules that require workers to make up production
losses without pay, in return for building a new plant.
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There have been growing pressures to modify work rules, particularly to get production
workers to do minor maintenance, to introduce multiskilling, and to outsource operations.
Modular production is a key objective of all the companies. A key indicator of this is the
rapid move to “Supplier Parks” or “Industrial Parks”. The city of Cologne, where we
visited, has a boastful web-page for the new Ford Fiesta plant:
“The new ultra-modern Supplier Park will be a central element in the
investment plan. Via a fully-automatic electrical suspension railway, the
construction elements will be delivered just in time for production to the
neighboring Ford plant. A dozen companies are planned to be provided
with space in the Supplier Park: Alliance, Arvin, Dynamit Nobel, Kautex,
Pilkington, Siebe, Siemens, Sommer Allibert, Textron and Visteon”.
The Move to Modular Production
The current round of investment in Europe has brought with it substantial changes to the
technical base and to the whole system of automotive production. Punctuating the
vocabulary of this round are words such as “leanfield”, “flexplant” as well as the
increasingly familiar “modular” and “supplier parks”. In a number of plants we could see,
often side by side, what’s in place and what’s coming.
The previous technology push in the mid-80s shifted work to sub-assembly lines for
doors, instrument panels(IP) and powertrains. In Rüsselsheim, like in Oshawa, doors,
IPs, and engines were assembled on Automated Guided Vehicles(AGVs) and just as in
Ford Cologne and Oakville Assembly, hundreds of robots were introduced into the body
shop and paint shops.
In this latest technology round, in Ford
Cologne, Opel Rüsselsheim and Saab
Trollhättan, dedicated product plants will
give way to “flex-plants” with one
assembly line capable of assembling
multiple products from sedans to
hatchbacks, to wagons and crossover
sport utility vehicles or SUVs.
What makes this investment/new
technology round different is its focus
on the whole system of automobile
production, particularly the relationship
between suppliers and assemblers.
Management’s strategy everywhere is to
The “Smart Car” a joint venture between
Daimler Chrysler and Swatch.
Built in a highly modular plant in Hanbach, France.
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push for the outsourcing of more components, more systems, more in plant services as
well as the sequencing and delivery of components to the assembly lines:
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at Halewood, suppliers like JCI and Conix are responsible for bringing
components in sequence right
to the assembly line. The Strip
Process Centre in final
assembly keeps track of every
single component including the
replacement of any defective
components.
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at Ford Cologne, a total of 11
suppliers are located at the
adjacent supplier park
delivering modules such as
instrument panels, engines and
transmissions, front axles,
fascias and seats to the plant
via an 800 metre automated
electrical railway.
Diagram of the Jaguar, Halewood Plant
showing the integration of suppliers.
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At Rüsselsheim, a “business mall” has been built on the property where shipment
of components and sub-assemblies are organized for delivery to the new
“Leanfield” plant just-in-time and in-line sequence. Fifty per cent of the
components used in assembly will pass through the mall compared to less than
10% today.
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at Vauxhall in Ellesmere Port, the new “flex-plant” for new Vectra assembly
includes the construction of a “supplier park” with suppliers such as Mackie,
Delphi and Plastic Omnium and a logistics supplier Ryders who will coordinate all
tier one component delivery to the plant.
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the new “leanfield” plant in Rüsselsheim has a unique feature. In many European
assembly plants there are windows lining the outside walls of the assembly plant.
This is also true at this new Vectra assembly plant in Rüsselsheim. Here though,
each window is dimensionally similar to a loading dock. If a change is made to
the configuration of the assembly line which in turn necessitates changing the
layout of the loading docks, they can be shifted in a comparatively easy manner
simply by removing the window and replacing it with a new loading dock.
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Chapter 2: Developments in Skilled Trades Work:
Skilled trades work --- what it is and who does it -- varies across countries and even
amongst companies. What we take as common practice is in other jurisdictions seen
as quite unique. What unions in other countries treat with a shrug is to us consequential
and at times even alarming. In our interviews on skilled trades work we found common
starting points but saw issues evolve and develop differently in each country. Skilled
trades work is influenced by economic developments, government legislation, corporate
pressure, technological developments, union structures and cultures and by the
dynamics of in-plant issues. In our site visits and in our many discussions with union
representatives and some company managers we explored a number of these issues.
What is it that is changing in the skilled trades? What is the scope of skilled trades
work? What are the effects of company operating systems? What about outsourcing
and the role of vendors, lines of demarcation, skill and training, apprenticeships, work
ownership, wage structures, union representation and so on?
What emerges, while not a complete picture of skilled trades work, highlights some of
the pressures on the skilled trades, some of the developments in skilled trades work and
provides a measure of union responses to skilled trades issues.
Outsourced Work: Vendor Maintenance and Construction
Wherever we went there was more reliance on vendors and higher levels of contracted
out construction work. Both situations ----- vendors and construction contractors ---reinforce the importance and the uniqueness of the work ownership language we have
bargained.
In England, Sweden and Germany equipment vendors have increased the extent of their
involvement and the range of their responsibilities. They are in the plants maintaining
and troubleshooting equipment. And unlike our plants, they are working on their own,
independent of the plant skilled trades.
In some cases they have gone a step further: At Daimler Chrysler in Germany, we were
told that some of the equipment will automatically telephone the vendor when it is
malfunctioning. The vendor will in turn diagnose the problem and telephone the plant to
direct skilled workers on the proper repair.
Jaguar, in England, has moved into a tooling partnership with an outside vendor whose
workers are in the plant performing maintenance on non skin stampings. The press
shop which once ran with 60 toolmakers has now been reduced to only 5 inside
toolmakers. On the upside some skilled trades workers are now in jobs of recording and
monitoring dimensional integrity which were previously held by engineering. Again at
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Jaguar, 30 Dupont workers are on site alongside 15 inside skilled trades workers.
Dupont is totally responsible for supplying the paint and maintaining the electrical
systems. In Vauxhall, also in England, a union representative told us the vendors
working on the robots were in the plant on a permanent basis.
In European auto plants it is common to see vendors in the plant. It is even more
common to see construction contractors. It seems there has never been a strong skilled
trades presence in the construction field. While most of the plants did have small crews
of “central maintenance” these skilled trades crews primarily maintain the building
facilities.
In Sweden there is no collective
agreement language at either Volvo or
SAAB agreements regarding outside
contracting.
The company is not
required to have prior discussions with
the union nor do they even have to notify
the Union of any construction work. One
union rep told us the only way to throw an
outside contractor out of the plant was to
prove the contractor had not paid taxes
the year before.
Jaguar, Halewood, Press Line
Similarly in Germany very little
construction work is done in-plant. Outside construction mechanics even installed new
equipment and tooling. In the Vauxhall agreement in England there is language that
requires contractors to meet standards and be unionized. But in order to secure the
work for their own members the plant union must prove that they can complete the job
during regular hours without overtime. Since this is exceedingly difficult most of the
construction is outsourced.
Operating Systems and the Shift in Skilled Trades Work
In addition to losing work to outside contractors and vendors, skilled trades see their
work further eroded through the shift of maintenance tasks to production workers. Some
of this shift has occurred as a result of company operating systems and in particular the
adoption of Total Productive Maintenance (TPM) (see box).
Signs of TPM could be seen in most plants. And while the level was uneven, the
integration of TPM was higher than it is in Canada. TPM is often accepted as a regular
work practice but it is also greeted with the cynicism that most company initiatives elicit.
One union representative at Cologne commented that;
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“Ford doesn’t push FPS and FTPM (Ford Total Productive Maintenance)
too hard, and the people feel it is just another company program. But the
workers were promised extra money for participating which they haven’t
received.”
TPM throughout the European plants involves production operators performing what we
would consider traditional skilled trades tasks. For the most part these tasks are minor
maintenance and include weld-tip changes, replacing burnt out control panel lights, some
pneumatics and belt tensioning, repairing damaged quick-link electrical switches and
general lubrication. Production operators are also allowed to work on breakdowns
associated with their work station, and the plant skilled workers are only called to the line
for more complex problems.
TOTAL PRODUCTIVE MAINTENANCE
Whether reluctant or not to
transfer skilled trades work Total Productive Maintenance derives from the 1982 book
to production workers “Introduction to TPM” by Nakajima Seiichi.
u n i o n s h a v e f o u n d According to Nakajima Seiichi, Total Productive Maintenance
themselves faced with the
combines preventive maintenance with Japanese concepts of Total
threat and promise of new Quality Control (TQC) and Total Employee Involvement (TEI). The
result is a new system for equipment maintenance that
product allocation. In some
supposedly optimizes effectiveness, eliminates breakdowns, and
cases special provisions
promotes autonomous operator maintenance through day-to-day
have been negotiated to
activities. Since it was first introduced in Japan, TPM has caused
a change in plant maintenance and generated a number of worker
allow TPM. At the start of
concerns.
the 90's IG Metal at GMRüsselsheim endorsed an
TPM left in its pure state is problematic. In his book, Seiichi refers
agreement
called “New to problems with North American union contracts, the need to
eliminate classifications/departments in maintenance and the
Work Practices.”
The
need to support autonomous production work groups performing
unions at Ford-Jaguarskilled trades functions. None of the plants toured, followed TPM
Halewood accepted a local
to the exact principles that Nakajima Seiichi set out but there were
agreement
called the
clear similarities in many local plant TPM applications.
“Halewood Gateway
Agreement.”
The
“Gateway” calls for the “the
elimination of maintenance resistance to support FTPM/PME.” ( PME being Preventive
Maintenance Excellence).
Although we saw the shift in skilled trades tasks to production as a common trend, the
effect on workers is different in each of the three countries. In Germany the concept
of production workers performing regular maintenance and responding to breakdowns
on the line was not seen as giving things up but instead as part of an effort to improve
line based jobs. In the German system every worker in production, has served an
apprenticeship in a skilled trade. There may still be some older workers who didn’t
complete an apprenticeship but now all young workers are hired from the company
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apprenticeship program. Since apprentices are all to some degree cross-trained in
different trades they are expected, once they are working on the line, to perform any
maintenance tasks with which they feel comfortable. In this context regular production
work included changing tips, lubrication, controlling robots from the teach pendants and
minor breakdown problems including the repair of hoses, proximity and limit switches,
etc.
In Germany the issue isn’t so much one of production workers performing skilled trades
work as it is the issue of fully apprenticed workers ending up working on the production
line with little opportunity to practice their trade.
In Sweden the situation was quite different. Formal apprenticeship programs seem to
have been abandoned years ago and in place SAAB and Volvo have integrated
production workers into assembly-line repair and maintenance.
Unskilled production workers will perform minor repair and preventive maintenance in
their areas and Line repair/ maintenance people, who have upgraded themselves, along
with a few licenced skilled trades, will only be called to major breakdowns. At both Volvo
and SAAB, production workers learn breakdown practices from other production
workers who are called ‘skilled workers’. These production skilled workers are selected
by management to receive an informal apprenticeship by working with the line
maintenance and repair crew for a couple of years. At other times the work of skilled
trades is being shifted to engineers. During one of our discussions in the plant a worker
declared: “This is a big battle in this plant”.
In Sweden there are five trades regulated by the government; electrician, pipefitter,
welder, sheetmetal, and carpenter. Both Saab and Volvo hire all their regulated trades
from outside. Most of the licenced skilled trades work together in a building central
maintenance crew where the work performed must be certified. They are paid less than
the line repair crews. In Sweden the in-plant union talked about getting back to
apprenticeships and a more regulated system for more of the skilled trades.
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Outlines of Other Operating Systems or Process Technology:
< Visual Factory/Control principles are clearly exhibits
throughout the European plants. The plants are clean and tidy.
Similar to many of our CAW plants. Through visual factory,
management knows at a glance whether or not production
activities are proceeding normally, but this management
system adds production related pressure on the workers.
< Six Sigma management systems/philosophy followed in
depth at Halewood. Six Sigma is a methodology companies
use to improve business processes, resulting in increased
efficiency and effectiveness to drive down cost and improve
quality. Workers under this company process are graded and
referred to as Black Belt, Master Black Belt or Green Belt.
< QPS Quality Process Sheets were observed at work stations,
and highly-developed at the Halewood plant. QPS sheets
break down work elements into smaller steps.
< Andon System was widely employed in the European plants.
Andon is a system to support collaborative work in a lean
manufacturing organization. Production is stopped for quality
defects either manually by pulling a cord-switch or
automatically. Andon system reduces preferred off-line
production jobs.
< “Jidoka” Quality Principle, the workers do not allow defective
parts to go from one work station to the next.
< “Just-In Time” Production, the plant runs on this principle to
replenish the right parts that have been installed on a vehicle at
the right time and in exactly the right amount at every step of
the process (eliminating excess inventories and applying
additional production related pressure on the workers).
It was in England where the
situation was the most
similar and also the most
dissimilar to our own.
Developments in both
Germany and Sweden were
common across the plants.
In England that was not the
case. The pressures on
unions in the U.K. from plant
closures, overcapacity and
restructuring and the
union’s response to them
has resulted in a range of
practices. All the necessary
managerial ingredients of
team work, multi-skilling and
“flexibility” are being mixed
together and the unions’,
while they try to hold on to
skilled trades values, have
also been forced to accept
management’s agenda. Our
delegation saw the
differences, for instance,
from Ellesmere Port
(Vauxhall) where they have
accepted some changes but
have resisted others, to
Jaguar where in our view
management had, at least
for now, won the day.
Skilled Trades
Integrated
in
Production Lines
There is a trend in the shift of skilled trades tasks to production workers. There is also
evidence of the reverse trend. Skilled trades are taking on more production tasks as they
are integrated into production teams.
At Ford-Cologne, skilled trades and production operators work together in teams, with
production operators performing minor maintenance tasks. Ford- Bridgend (Wales) has
a teamwork agreement, called Integrated Manufacturing Teams (IMT). Here skilled
Page 9 of 42
trades and production workers both operate machines. Skilled trades assigned to the
IMT receive an additional wage allowance of 5%. Bridgend IMT consists of a team
leader, two skilled trades, two Integrated Manufacturing Specialists (IMS) and half a
dozen operators who rotate hourly on the equipment. Machining areas in Bridgend are
staffed by “autonomous teams,” generally composed of 50% trades and all of whom
operate machines.
At Jaguar they had gone the furthest. When we asked management about the
advantages of the new work practices they answered ‘flexibility’ and pointed to the
provision that skilled trades are required to cover production ‘lates’ and absenteeism up
to the first break.
Lines of Demarcation
Just as there are changes in skilled trades work there are also changes in trade
classifications. Lines of demarcation are fading in Europe. Traditional trade lines are
blurring, there are new amalgamations, demands for multiskilling and the creation of new
single classification trades.
In Vauxhall, nine mechanical trades have been amalgamated into two trades, mechanical
fitter and machine tool fitter. The apprentices in England still serve an apprenticeship
in their trade and must write their ‘City and Guild’ papers to graduate. Once graduated
they may be further trained and work in an amalgamated trade group.
At Ford, Bridgend there are still 8 skilled
classifications but management has
introduced a new all purpose amalgamated
trade. This new classification –Elec-mech or
Mech-elec (depending if the worker’s original
trade was electrical or mechanical) --- was
designed to increase ‘flexibility and
versatility’. Skilled workers consisting of
electricians and mechanical maintenance
cross train in each others trade and work as
a team for which they receive a 5% wage
supplement.
Mech-Elec as a step to “advancement”
In Germany we saw a comparable
classification called Mechatronics which is made up of electrical and mechanical skills.
It is now a recognized trade and is approved by the government. The mechatroniker
program is in place at Opel and DCX and the companies are already apprenticing
workers in the new trade. In German plants there are about eleven to fifteen
Page 10 of 42
apprenticeship classifications (not all of
these are skilled trades -– some are office
based) of which “mechatroniker” is the
latest. Companies are directing the socalled ‘smartest’ applicants into the new
trade with the expectation that once they
graduate they will actually move into the
skilled trades. It is not clear that electrical
and mechanical graduates already
working on the line will be given the same
opportunity of ever practicing their trade.
Mechatronic Apprentices, DaimlerChryser, Stuttgart
What’s comes next after merging
electrical and mechanical lines? Ford’s
answer seems to be a single skilled trades classification. Jaguar has taken the mechelec classification which Ford designed for Bridgend and has made it a single plant wide
classification. It is the only trade classification in the Jaguar plant at Halewood. To
become a ‘mech-elec’ the mechanical trades take an additional 16 weeks of electrical
training and to become an ‘elec-mech’ the electricians take 11 weeks of mechanical
training. Both trades are also required to participate in a ‘buddy system’ training
program which lasts for six months on the floor.
Jaguar management is convinced of the benefits of a single trade plant. They talk in
terms of flexibility and an end to lines of demarcation squabbles. At Bridgend both the
union and management were more reflective. One HR manager put it bluntly: “We didn’t
get the best bang for the buck out of it.” From a different perspective a maintenance
steward predicted: “When our generation’s finished, Ford will be left with people that are
neither electrical or mechanical ---- we’ll be in trouble.”
Moving Into Non-traditional Areas
In a number of workplaces there are skilled trades, albeit a small number, who are
moving into new work areas. Some are trading tools for pencils. Planners, schedulers,
dimensional integrity checks, tool calibration, preventive and predictive maintenance
records and other work that was historically clerical or engineering in nature is now
being taken over by the skilled trades. These new positions have helped create jobs for
skilled workers in Germany, have seen engineers and skilled trades working in teams on
research and development projects associated with diesel engines in Volvo in Sweden
and in fact, have even saved some toolmakers jobs in Jaguar. There are similar
developments in some of our own plants.
Page 11 of 42
Wage Structures
The hourly wage scale for skilled trades is at the top of the blue collar system in each of
the countries we visited. There are considerable differences, however, in the wage
systems. The differences start with how often workers are paid: In some plants, workers
get paid bi-monthly, in others only once a month. As one of the workers we met in
England put it: “We’re very rich for a couple of days then broke for the rest of the
month”. The differences extend to how the trades are paid, what they are paid for, what
goes into the wage structure and the differential between trades and production workers.
In Europe there are differences between skilled trades wages in different companies,
differences between plants of the same company, differences within the same workplace
and even differences within the same classification.
The wage structure is more complicated than ours and skilled trades wages are far more
contingent. In addition to a negotiated hourly wage scale, skilled trades wages are
dependent on their knowledge, ability and work ethic. Their wages are influenced by
team performance, the assessment of their supervisors and where there is a central
agreement, whether the local union has bargained a top-up to the negotiated increase.
<
In Sweden there are a number of wage grades and different levels within the
grade. There are different wage rates across plants. Skilled workers begin at a
level higher than production and increases are achieved by taking additional
training. They are also paid according to the performance of their group which
is largely determined by their supervisor. In this system, different workers can
perform the same job yet receive different wages. Individual measurement can
account for as much as 25% of salary.
<
In Germany there are typically 10 wage levels in the auto sector with skilled trades
beginning at level 7. Where we visited, a skilled trades worker could become a
specialist in their trade and increase their wages through to level 10.
<
In England there is a set rate for skilled trades and about 12% wage differential
between skilled trades and production workers. In some plants additional
increases are possible through practices such as pay for knowledge, team work
and posting for leaders’ positions.
Shift premiums which are more complex and are higher than ours are part of the wage
structure in each country.
In addition to shift premiums there are substantial vacation and holiday bonuses.
Page 12 of 42
In Germany the work week is on average 35 hours. Swedish autoworkers work 39 hours
and the British work 37.5 hours in a week. (see Collective Agreement comparisons for
detail) In most cases the premium for overtime is similar to ours (time and ½ and double
time) but for the most part European autoworkers don’t want to work overtime.
Page 13 of 42
Chapter 3: Apprenticeship and Training
There is not a European approach to apprenticeship. How the programs were designed,
how apprentices are selected, what happens once an apprentice graduates varied
considerably across England, Sweden, and Germany.
<
In England (and Wales) the plants had programs which were regularly taking in
apprentices in small numbers. The programs also contained regulated criteria in
both school and shop floor schedules.
<
In Sweden, the auto plants had no formal apprenticeships in the plants we visited.
There was mention of a limited apprenticeship in one of Volvo’s plant. Any
regulated trades in Sweden are hired from the outside and line maintenance (line
repair) in Saab was populated by upgrading production.
<
Germany had the most extensive and continuous apprenticeship program. High
numbers of apprentices are trained year after year. The apprenticeship
programs are the recruiting grounds for all new hires into the plants.
In Germany apprentices start young, around 17 or 18 years old and auto plants don’t
accept applicants over the age of 24. Apprentices are selected out of the school system
not from the ranks of production workers. There are some exceptions. The Opel plant,
for example, since it had not fully apprenticed all its production workers still allowed
production workers to apply for apprenticeships. DCX and Ford on the other hand didn’t
accept applications for apprenticeship from production workers. In Germany
apprenticeships are virtually a continuation of the school system. The school system
streams children at an early age and in quite a rigid manner. Typically around the age
of ten and only four years into the primary system children are setting their future
course. Depending on what schooling path
they select, kids are streamed into
university and professional jobs, white
collar or blue collar occupations. Students
enrolled in the general secondary schools
(Hauptschule) are the ones who end up
applying for apprenticeships in the auto
industry.
In Germany apprenticeships are a career
path to more occupations than is the case
in Canada. Secretarial and administrative
positions have apprenticeships.
For
example the works councillor in Cologne
First Year apprentices
at the DaimlerChrysler Plant, Stuttgart
Page 14 of 42
who is responsible for apprenticeship and training had served a three year
apprenticeship as a “bank clerk” prior to working for Ford. In the auto plants there are
between 11 and 15 classifications for apprenticeships. In addition to the mechanical
and electrical trades and the new ‘mechatroniker’ program there is a three year
apprenticeship in the classification of “clerk” (store attendant) and a new three year
apprenticeship program to be a “production technician”.
German auto companies commitment to hiring apprentices is seen in the numbers. Ford
in Cologne hires 200 apprentices each year. DCX in Stuttgart takes on 300 a year and
GM in Russelsheim trains 350 a year. Compare this to the UK where Ford at Bridgend
hires about 9 apprentices a year, GM, Vauxhall about 20 and Ford, Jaguar only 5. In
Sweden the plants don’t take on any apprentices but instead upgrade production workers
into line repair.
Although Germany trains a high number of
apprentices there is a downside. A graduating
apprentice has to work in production until and
if an opening occurs in the skilled trades.
Once an opening does occur in their trade, the
opening is not necessarily filled by seniority but
by the most qualified candidate as determined
by the company.
In Germany there are a large number of
applicants for apprentice openings. In Ford
First year toolmaker apprentice projects
they regularly reduce the number of applicants
Ford, Cologne.
from 2,600 to about 1,000 by setting a
restrictive screening threshold in math, physics and German.
The length of apprenticeships in Germany are 3 to 3.5 years. The shorter terms are for
the administrative and production technician apprenticeships. There are some
exceptions. Ford-Cologne for example, provides an additional 10% on top of the annual
intake of new apprentices. These additional spots go to applicants leaving school with
an A-level education. They will complete the apprenticeship in 2 years instead of the
normal 3 ½ years.
Apprenticeship training generally consist of two years of theory and hands-on practical
training at an in-plant company training facility that is modern, well equipped and
removed from production pressures. Apprentices are self-paced in a group setting and
the program is competency based. The apprentice is required to complete a prescribed
set of modules within a set period. Instructors provide the theoretical training and
apprentices rely on the instructor when they have a problem.
Page 15 of 42
There is no shadowing of a tradesperson during this period. It is not until the third year
of apprenticeship that the apprentice receives hands-on training on the shop floor. In
the first year of the training apprentices are cross trained in some of the skills of
different trades. This cross-training is increasingly a common feature of apprenticeship
programs.
Apprentices in Germany sign a contract with the company and are guaranteed a job on
graduation (on the production line). While they are apprentices they are paid about 1/3
the rate of a journeyperson. They have their own representation on the Works Council
and are eligible to join the union.
In Germany apprentices are not included in the head count of the plant and the the
apprenticeship program is completely paid for by the company. It is not subsidized by
government.
The UK has an apprenticeship system much like ours with time-based apprenticeships
consisting of a mixture of both schooling and shop floor experience which are
government regulated to a national standard. The programs are four years in duration
and many of the positions are filled from production. Where the programs differ from
ours is in the amount of college training and cross-training. During the 4 years, an
apprentice receives 1 year of technical training at a community technical college. In the
UK the first year curriculum includes cross- training and there is a move to further
multiskill apprentices. In Bridgend, it is not until the final year that the apprentice is
included as part of the head count. Jaguar has recently changed its position and
apprentices are now included as part of the head count from day one.
All the auto companies talk about encouraging women apprentices but the results are not
in the numbers. Bridgend reported having only one female apprentice in their program
and Vauxhall reported having “a few
women” in their apprenticeship program.
Jaguar only commented that it was difficult
attracting women into the apprenticeships.
In Germany recent figures do indicate a
high number of women in apprenticeships
in both Cologne and Stuttgart. But the
claim of having “a high rate of female
apprentices” has a lot to do with the
number of women enrolled in
“administrative” apprenticeships not in the
technical programs.
Female apprentices DaimlerChrysler, Stuttgart
Skilled Trades Training
Page 16 of 42
We expected to find a greater emphasis on technical training in European plants than
we did. In fact the auto companies we studied provided very limited skilled trades
technical training. There was little evidence of worker committees for training or new
technology. And the training that was provided was not developed nor delivered by
company employed skilled trades.
On the other hand there seemed to be ample resources for training workers about
company operating systems, like Total Productive Maintenance (TPM), or for new skilled
trades single plant-wide classification.
In Germany, most training for skilled trades is around health and safety, with technical
training taking a back stage. Technical training is only associated with new
tooling/equipment and product launches and even then there isn’t a lot. For example,
skilled workers at GM Opel receive only one week of upgrading during a new launch.
When technical training is provided it is delivered exclusively by vendors. In German
plants there seems to be more emphasis on academic education. Some German
companies provide student scholarships and employment for students during the
university breaks. The students have money paid to them each month from the hours
worked in the plant through a “time-account’. Also, there are many different
“partnerships in learning” between German employers, government and colleges.“ There
is also a system of tuition support where workers in Germany receive a company
subsidy towards part-time studies with the rest paid through the German tax system.
In Sweden, the picture around training is similar to Germany. Vendors design and
deliver the technical training. The vendors train the workers up to a comfort level before
leaving the plant, returning only when called upon to assist in technical troubleshooting.
Since there aren’t structured apprenticeship programs in the Swedish plants the issue
of skilled trades training is not a high priority. Instead the Swedish Metal Workers Union
has a bargaining policy (not yet achieved) of 100 hours a year of technical training for
every worker to “help maintain their competitive edge over other European vehicle
assembly plants.” One familiar problem they report is getting workers relieved from their
normal duties so they can attend training programs. In Sweden education, including
university, is free.
In Wales and England, the plants are reliant on vendor training. Ford at Bridgend Wales
and at Halewood, England, is a good example of the company and government providing
money for training workers in company operating systems and the new skilled trades
classification (Elec-mech) but where there isn’t much regular technical upgrading for
the skilled trades. GM-Vauxhall, Ford-Bridgend and Ford-Jaguar all profess to support
life-long learning and professional development of their employees through universities
and colleges.
Chapter 4: Investment and Technology
Page 17 of 42
It was our impression that what’s in place in terms of technology in the assembly and
powertrain operations was quite
comparable to the technology found in
Canadian plants. But even though the
level of technology was comparable what
was evident was that the plants we visited
had slower line speeds and more workers.
Vehicle Assembly Plants
In addition to a more comfortable pace of
work in assembly plants there were some
interesting developments in human factors
engineering:
Clam Shell Carrier - Opel, Rüsselsheim
< At Saab, Trollhättan and Opel,
Rüsselsheim, the “clam-shell” overhead
carriers transporting the painted body
shells from the paint shop through final
assembly to the chassis “marriage
station”, tilted the car 90 degrees
allowing workers to work at more
comfortable heights and reaches.
< at Vauxhall in Ellesmere Port, the
overhead “clam-shell” carriers in final
assembly didn’t tilt but each individual
one contained a hydraulic scissor lift
that raised and lowered the vehicle
body allowing for different working
heights at workstations;
Carriers at Vauxhall, Ellesmere Port
< at both Ford, Cologne and GM’s new
“Leanfield” plant in Rüsselsheim,
workers will stand on a wooden mobile
platform that moves along with the car
body which is supported on a “skillet”
or scissor lift that can individually
adjust the height of each car body
depending on the job performed. The
platform is constructed of laminated
Mobile Platform at Ford, Cologne
Page 18 of 42
wood which serves the same purposes as ergonomic matting, and there is a longer job
cycle.
< At the Bridgend engine
plant, concerns over
pedestrian safety and
heavy forklift traffic led to
new developments in
“walking delivery systems”
as well as a new design for
forklifts. In this case, the
operator remains seated
while moving the forklift but
has to swivel 180 degrees
and change into a standing
position when lifting a load
ensuring better visibility
while looking at the load
through the frame and
forks.
< At Halewood, a new “crabline” turns the vehicle
bodies through 90 degrees
to a side-by-side position
for specific front and rear
assembly application. This
development eliminates
workers having to walk
backwards while doing their
job in and around the
engine compartment and
trunk for example.
Press Shops
Recent Investment
<
In 1998, Ford announced that it would spend close
to CDN $900 million to build a brand new car, the
Jaguar X-400 in what was then the old Ford Escort
plant. Since the last Escort rolled off the line in July
of 2000, this meant launching a brand new vehicle
and converting the facility to a modern assembly
plant in only 14 months.
<
In 1999, Ford announced that it will spend CDN
$650 million to launch the next generation Ford
Fiesta and begin the conversion of its production
halls in Cologne, Germany to one of the most
modern automobile plants in Europe. A new CDN
$100 million Supplier Park will come on stream at
the same time.
<
The same is true for GM’s Opel Division in
Germany and GM’s Vauxhall Division in the U.K. As
part of Project Olympia, GM will invest CDN $650
million in a brand new “Leanfield” assembly plant
within its huge Rüsselsheim complex utilizing the
latest production techniques. Recently, GM
invested almost CDN $1.2 billion modernizing
Ellesmere Port U.K. for new Astra production and
another CDN $470 million last year converting the
assembly areas into a “Flex Plant” building the new
Epsilon platform Vectra model here and in
Russelsheim.
<
And in Sweden the story was the same. Volvo was
in the process of ramping up its new S80 large
sedan platform in Göteborg in a recently renovated
assembly plant while just next door at Saab in
Trollhättan, GM is investing over $1billion U.S. for
new assembly, paint and press shops to build its
new 9-3 and 2003 9-5 models.
The Press shops we visited
stamped inner and outer panels for the adjacent body shop and for other European
locations, for service parts and for CKD(completely knocked down) kits. As a result they
are much larger than ours in terms of the number of press lines and die maintenance
equipment. There were lines of tandem presses(both re-furbished and new) mixed with
huge transfer presses, some as large as six slides, and in Rüsselsheim, one of their
newest transfer presses for stamping complete body rings utilized “crossbar” transfer
Page 19 of 42
technology.
< At Jaguar in Halewood, 15 separate
press lines consisting of 103 presses
stamp parts for all 3 jaguar models, XJ,
S, X and Escort Van. On hand are
1300 individual die sets for a total of
434 parts 306 die sets are for the XType or 97 individual parts. More than
40% of the 23 million stampings is
shipped to other Ford plants in Europe
and to Jaguar in Coventry.
< At Saab in Trollhättan, the press shop
Stamping Press - Jaguar, Halewood
produced stampings for all of the Saab
models. Here, new press lines were
being added to increase its metalpressing capacity. The stamping plant
in Trollhättan produces body panels for
the new 9-3 and 9-5 models on four Automated Machine Line - Ford, Bridgend, Wales
separate press lines. A new tri-axis
transfer press is coming on stream. There is an in-house try-out centre
incorporating try-out presses for developing and testing dies as well as a simulator
for developing and setting part specific transport tools. The objective is to shorten die
break-in-times on the production press.
< Press lines or large transfer presses are generally used for the serial production of
medium-size and large body panels. The very first body panel transfer presses were
installed at Rüsselsheim in the early eighties. The newest and largest of the 16
transfer presses incorporates the latest
development in electronic transfer and
handling technologies called vacuum
gripper crossbar transfer. This means
that larger and larger body panels such
as complete vehicle “side rings” can be
stamped in this transfer press. This
same press has the capacity to
simultaneously produce four large
sheet metal parts, in other words, four
exterior door panels for the Omega
sedan can be stamped at the same
time.
Press Line - Opel, Rüsselsheim
Page 20 of 42
Engine Plants
It’s hard to get a good sense of just what’s happening when you tour the machining side
of engine plants. Rough castings quickly disappear inside a long line of machines called
a transfer line and later reappear as completely machined heads and blocks. The level
of technology in the engine plants we toured seemed comparable to technology found
in our Windsor Essex or St. Catharines engine plants. Even the name plates on the
machinery were similar, Ingersoll Milling, Lamb, Cincinnati and Thyssen.
It was in final engine assembly where we noticed the biggest difference compared to our
engine plants - there were far more workers on the line. At DaimlerChrysler’s
Untertürkheim plant which assembles engines for the “A-class” model, management’s
automation strategy included the latest generation of smart “stop-and-go” individual
engine shuttle conveyors but relatively little automation in valve, connecting rod and
piston insertion. Here they argued that given the relatively small volume of the various
gasoline and diesel engine versions needed, it didn’t warrant the huge investments in
engine assembly automation. Rather than reconfiguring machinery they could simply
shift workers from gasoline engine assembly to diesel engine assembly depending on
market demand. Management wasn’t ruling out the possibility that in the future those
dedicated transfer lines for head and block machining might resemble the current flexible
CNC machining cells used for crankshaft and camshaft production.
Page 21 of 42
Chapter 5: Union Structures and Union Fightbacks
Differences in labour laws, labour relation practices and social programs result in
different union structures, representation and responsibilities. And these differences
together with past and current workers’ struggles result in differences in collective
agreements.
When in other countries we see through the lens of our own experience. We interpret
according to what we have and what we want.
The countries we visited were all different from each other and from us. As a study tour
we were always comparing, always trying to make sense.
For example:
< In England, we were told that the union was arguing for a competency based testing
for job movement inside the plant. For us it didn’t make sense until we realized they
had different provision around job postings and seniority. For the union in England,
arguing for testing, was a way to erode the power of supervision to select their
favourites.
< In Sweden we were puzzled about the point system that was used in the selection of
shifts. Here, for instance, workers with children were given higher social points than
those without children. It was only when we realized that seniority wasn’t the
determinant of shift selection that we could understand the Swedish union’s strategy.
The three countries we visited ---- Germany, Sweden, England (Wales) all have different
union structures.
< In Sweden the union structure is closer to ours than is Germany’s but the collective
bargaining system is very different.
< In England a union convenor is similar to our plant chairperson but the fact that the
skilled trades are in a separate union set them quite apart from us.
Everywhere we went the discussion was about differences and similarities; what we liked
and what concerned us. Much of it was just about understanding what we were seeing.
Page 22 of 42
Germany: The Dual System
For our delegation the
widest gulf to bridge was
the German system. The
dual structure of work
councils and the union at
the plant level; the role of
the works councillors in
contrast to union
stewards; and the seeming
close collaboration
between works councils
and management made it
the hardest to identify
with.
In bargaining there is a
dual structure with unions
at the central level and
works councils at the plant
level. Similarly in terms of
representation there is a
dual structure with the
union involved at the
company
level
(Supervisory board) and
the works council at the
plant level.
Union: Points of Reference:
!Union membership in Germany and Sweden is voluntary.
!Union recruitment is done on an individual basis
!In Germany it is works’ councillors not union reps who are
the shop floor representatives
!Seniority doesn’t play the same role in Europe as it does
with us.
!In Sweden and Germany legislation provides for worker
representatives on company boards.
!In England the skilled trades are in a different union than
production workers.
!In Sweden and Germany there is a very high rate of
unionization
!In Germany white collar workers in the plants can be
members of IG Metall
!In Sweden white collar workers are in a different union
than plant workers.
!In Germany supervisors are part of the works councils.
At the central level the union
(IG Metall) negotiates with employer associations to arrive at a regional industrial
agreement (20 regional agreements). These agreements set minimum standards and
conditions (wages, vacations etc). In addition there are local agreements between
specific companies and their works councils which can negotiate terms over the
minimums. Works councils also negotiate the terms and conditions wherever the regional
agreement provides for local flexibility or how a particular provision, such as the 35 hour
week, is to be applied.
The union is responsible for central agreements. It is represented on company boards.
But it has no official representation (labour relations) role in the workplace. There are
elected shop stewards (At Ford Cologne where there are about 16000 union members
there are 807 shop stewards) but their’s is a political role (talk about what the union does
Page 23 of 42
and its campaigns) not a representative one. Shop stewards get an hour or so a month
for union work.
Union membership is voluntary, so are dues and contracts apply to non-union members
as well.
The works council is the body which legally represents the employees of the company.
They are elected for 4 years and in large workplaces they are full time. In Ford
Cologne, for example, a workplace with 21,000 employees there are 39 full time works
councillors (29 from production and 10 from salaried). These works councillors
represent different parts of the facility (gear department, purchasing department, finance
department, body shop etc) .
Much of what our union reps do is
done by works councillors. They
ensure that laws, regulations, Health
and Safety measures, collective
agreements and company agreements
are observed. They hear and resolve
employee grievances They negotiate
the plant agreement. They meet
regularly with the employer and they
will meet with the steward body. They
sit on different committees such as
wage committee, training, health and
safety, cafeteria, social, etc.
Quarterly Factory meeting at Ford, Cologne.
Reports given by I.G.Metal, Works Council
and management
Works Councils are independent of
the union.
Works councillors
represent all workers and even non-union members can be elected as works councillors.
Works councils are required by law to represent not only the employees but the best
interest of the company and in exchange they are given authority in law for intervening
in some management decisions. For example, the works council has the authority to
approve overtime requests by the company.
IG Metall has been effective at developing an informal control over the works councils in
major plants. Most works councils are controlled by a union slate. IG Metall, for
instance, automatically makes work councillors into union stewards.
Because there are regional as well as plant agreements there is a range of conditions
under which auto workers work. In the last decade or so this local variation has become
more pronounced.
Page 24 of 42
Sweden: The Pressures on National Bargaining
At the plant level the union structure in Sweden seemed closer to our own. In the plants
there are shop stewards and full time union representatives. In addition the “district
branches” are similar to our amalgamated locals.
The bargaining system, however, is quite different. It is more like Germany. The
Swedish Metal Workers, an industrial blue collar union, bargains at the national level with
Employer Associations. It bargains minimum standards and conditions and it establishes
frameworks within which local bargaining is to take place. There are industry wide
agreements and there are local agreements which are bargained on a plant by plant
basis. At the national level, wage frameworks and minimum increases are bargained
and so are pensions, working hours, premiums and other framework commitments (i.e.
skill development).
The current national agreement runs for 38 months and the local agreements are for 12
months.
During the 1990's employer associations attempted to rewrite the rules of national
bargaining . As a result there has emerged new institutional structures for regulating
bargaining and at the same time limiting industrial action. In addition the system for
wage bargaining has changed considerably. As a consequence of these developments
there are smaller pay rises bargained centrally with more of the wage bargaining subject
to local agreements.
These new wage structures are seen as a compromise between the employers demands
that wages should not be part of the central agreements and the union’s efforts to
preserve central bargaining.
In the past 5 years the Swedish Metalworkers have bargained jointly with the white collar
unions in the industry.
Given the combination of central and local agreements there is variation across the
industry in areas such as wages and working time arrangements.
England and Wales: Multiple Unions
The bargaining system in the UK is company based. Unlike Germany and Sweden there
are no sectoral agreements. Unlike us there is no coordinated pattern bargaining.
There are national and local agreements with particular employers but there are no
common expiry dates across the industry. For example there is a national Ford
Agreement and there are local agreements for different Ford plants. We visited the
Bridgend engine plant in Wales and the Jaguar plant in Halewood. These plants have
Page 25 of 42
local agreements.
There are also different unions for
production and the skilled trades. In
the plants we visited production
workers are represented by the
TGWU (Transport & General Workers’
Union) — a union much like our own
— but the skilled trades workers are
represented by the AEEU
(Amalgamated Engineering and
Electrical Workers’ Union). While this
isn’t 100% so it is the general rule.
TGWU in-plant offices at Vauxhall, Ellesmere Port
showing union rivalry.
The national agreement is bargained
jointly by the unions representing hourly workers. The recent Ford agreement, for
example, is signed by 20 different unions.
Inside the plants there are stewards for production and for the trades but usually there
is only one convenor who chairs the joint works committee and who relates to
management in a manner similar to our ‘plant chairperson’.
Efforts to coordinate bargaining between the different unions can be difficult and the
relationship between the unions, who have quite different perspectives, varies plant by
plant.
Currently the AEEU is in merger talks with another union, the Manufacturing, Science
& Finance Union (MSF). Amongst other members the MSF is the union which
represents shop floor supervision in the plants.
Under Thatcher British labour laws were rolled back and unions were attacked. The right
to strike was limited and collective agreement provisions such as seniority were
dramatically weakened.
Union Fightbacks and New European Forums
Despite different traditions, and widely different structures, unions in all three countries
are mobilizing to resist the corporate threats to their jobs and negotiated wages, benefits
and working conditions. In Germany and Sweden this has primarily been through
collective bargaining, and IG Metall has had some success in getting the corporations
to maintain a certain level of production and avoid plant closures. In addition, IG Metall,
is developing a different organizing strategy to try to meet the challenges of
modularization by trying to get the workers for the parts suppliers under an umbrella
Page 26 of 42
agreement.
In the UK, plant closures and job reductions have led to strikes, mass demonstrations
and efforts to mobilize public support.
Some of the largest public labour
demonstrations in recent years have been
held in support of auto workers jobs at
Ford, Vauxhall and Rover.
There have been efforts by all the auto
workers unions in Europe to develop
stronger ties, and build new structures of
solidarity between countries. European
Protesting workers storming Vauxhall headquarters
after GM announced plans to close the Luton Plant
Economic Union legislation required the
creation of Europe-wide “employee
forums” at major corporations. These bodies are only consultative. However, in the
case of the GM European Employee Forum (EEF), the Union developed a strategy of
using the EEF to try to force GM to negotiate. They coordinated a strong opposition
movement to the threat of closure of the Vauxhall plant in Luton, including a “European
Day of Action” when 40,000 GM workers across Europe demonstrated or struck. This
was a significant factor in the UK unions being able to achieve a settlement that included
maintaining some vehicle production in Luton. The EEF since negotiated a commitment
from GM to not close any European plants, and make every effort to avoid involuntary
job loss.
Page 27 of 42
Case Study: UK Fightbacks
Some highlights from the past few years:
1997 - Ford reneged on their promise to put the
new Escort in Halewood, and instead moved it
to Saarlouis, Germany and Valencia, Spain.
This action also threatened 1500 jobs at the
Bridgend Engine plant and 1200 jobs in
Swansea that were tied to Escort production.
Workers voted to take industrial action, and
there was public protest, including in
Parliament. The resolve was the allocation of
the “baby Jaguar” to Halewood and new engine
models to Bridgend, but the price was the
“Halewood Gateway Agreement”.
1998 - BMW (who had purchased Rover in
1994) demanded sweeping concessions,
including wage cuts and the right to
compensate overtime with time off in slack
periods. They got what they demanded. There
were 9,000 job cuts the following year.
March 2000 - Despite getting the concessions,
BMW announced the sale of Rover. Some
80,000 people demonstrated. The end result
was a purchaser to keep a scaled-down Rover
in operation with substantial government
subsidies and a piece sold to Ford (Land
Rover).
May 2000 - Ford announces its intention to
close its Dagenham assembly plant. In order to
try to isolate workers in that plant, they
promised new investment and some new jobs
in the Dagenham diesel engine plant and
Bridgend.
Ford also offered generous
redundancy payments. After months of public
protests the Unions conducted a ballot for a
strike mandate in November. The results were:
T&GWU 2-1 against striking, AEEU 3-1
against, MSF 10-1 against.
December 2000 - General Motors (Vauxhall)
takes a page from Ford’s book and announces
its intention to renege on its written contract that
guaranteed the new Vectra model to the Luton
plant, and a new Astra model to Ellesmere Port.
Instead, they plan to close Luton. As the Unions
pointed out, this was “a complete breach of
clear and specific agreements with the trade
unions, local and national government”. In fact,
the 1998 contract promised the new investment
for both plants in return for flexibility and
productivity improvements, and reduced pay
and holidays for new employees.
December 2000 - Workers demonstrated and
invaded Vauxhall headquarters. A campaign
was started to “Save Luton Jobs”. With support
from the European Employee Forum, an
organization of Unions representing GM workers
across Europe. There were protest strikes, not
just in Luton but also in Ellesmere Port.
January 25, 2001 - The European Employee
Forum held a “Europe Wide General Motors
Action Day, and 40,000 GM workers across
Europe struck or demonstrated in support of the
Luton workers.
February 2001 - Vauxhall announced the new
Vectra would go to Ellesmere Port. Strike
ballots were held and the T&GWU received a
strike mandate. However, the AEEU and MSF
“voted for action short of a strike”. The T&GWU
conducted a three day strike at the end of
February.
March 2001 - By March the T&G decided they
had gone as far as they could, and accepted an
improved agreement.
This included: (1)
Transfer of the Vectra to Ellesmere Port, along
with the previous “flexibility agreement” from
Luton. This would also secure some supplier
jobs in Luton; (2) Increased production of
commercial and recreational vehicle production
at Luton by IBC (a GM/Isuzu joint venture dating
back to 1987). However, this means transfer of
1200 workers to a different collective agreement
with somewhat lower pay; (3) Management to
take all reasonable steps to avoid any
compulsory redundancies through transfers to
IBC, Ellesmere Port, or retirement incentives.
Page 28 of 42
Chapter 6: Collective Agreement Comparisons
There were a number of clear differences between our Big Three collective agreements
and those of the Unions we met with in Europe.
In general terms, their contracts are much weaker on what we consider as core skilled
trades issues. They have little or no language on lines of demarcation, outside
contracting or skilled trades training. While there are strong apprenticeship programs
in Germany, this is primarily because of government and corporate policy and not
contract language. There are few apprentices in the UK plants and none in Sweden, so
obviously this is an area they have not dealt with successfully in bargaining.
On the other hand, where the European Unions have focused their attention - vacation
time, vacation bonuses, hours of work, and shift premiums for “unsocial hours” - they
have done extremely well. In many of these areas they match or surpass our collective
agreements.
Hours of Work
IG Metall in Germany has led the way here, and after several sets of negotiations and
strikes they have achieved an average 35 hour week. The downside is the description
“average”. To get the industry’s acceptance of the shorter hours, the Union agreed to
make local accommodation with the companies to lessen the impact on their production
schedules. In some plants this means an 8 hour day with banked time off, in some it is
accomplished by a schedule of paid days off. Nevertheless, combined with their 6
weeks vacation, German autoworkers average the least hours of work per year
anywhere in the world.
In Sweden and the UK, the Unions have also pushed for shorter hours. The UK plants
worked 37.5 hours per week, while in Sweden the average was 38 to 39 hours per week,
with further reductions negotiated for 2002.
Vacations/Vacation Bonuses
Vacation time in Europe is generally legislated, not negotiated. All workers in Germany
get 6 weeks paid vacation. It’s 5 weeks in the UK and Sweden. (British Unions have
negotiated an extra 3 days and 5 days for 10 and 25 year employees). In all three
countries vacation time is fully utilized.
(continued on page 32)
Collective Agreement Comparison - Part 1
Page 29 of 42
Hours of Work
Vacation/Holiday
Shift Premiums
Cologne
Ford
35 hours/week
6 wks. (legislated),
Vacation bonus of 72% of monthly
pay, Christmas bonus of 15%-100%
of monthly pay depending on
service.
Aft. - 15%
Nights - 20%
Stuttgart
Daimler
35 hours/week average.
Work day is 8 hours and 5
hours/wk is banked and taken
as 2 extra weeks vacation
6 wks. (legislated), plus 2 weeks
banked (see hrs. of work). Vacation
bonus of 62% of monthly pay (paid
out as 1.5 days pay for each day of
vacation) and Christmas bonus of
55% of monthly pay.
Aft. - 20%
Nights - 30%
Russelsheim
Opel (GM)
Work day is 7.5 hours and
workers are scheduled a
rotation of 4-day (31 hrs) and 5day (37.5 hrs) weeks to average
35 hrs/wk. Pay is for 35 hours
every week.
6 wks. (Legislated) of which 3 weeks
is summer shutdown. Vacation
bonus paid out as 50% extra for
each day taken. Christmas bonus of
one months pay. 10 paid holidays.
Aft. - 10%
Nights - 25%
Volvo
Goteborg
38 hours/week avg.
Shift rotations from 4 up to 14
weeks. Evening and night shifts
are shorter than days, and
people on 3-shift rotation
average fewer hours/wk. There
is banked personal time of 0.6
hrs/shift. Union has negotiated
further reductions by 2002.
5 weeks vacation and 5 - 6 holidays
(legislated). When vacation is taken
there is a bonus payment of 0.8% of
a month’s pay for each day of
vacation. There is also a lump sum
equal to 13% of previous years
overtime and shift premiums. Four
weeks of vacation are summer
shutdown, the fifth week is flexible.
Annual lump
sum:
Afternoons 60,000 kronor
($9,000),
Nights 120,000 kronor
($18,000).
Saab
Trollhaten
39 hours/week
5 weeks/yr., of which 4 weeks are
plant summer shutdown. Fifth week
at employees request or banked for
future use (incl. pre retirement).
Bridgend
Ford
37.5 hours/week
Work day is 7.5 hours plus 30
minute unpaid lunch.
Contract has 8 paid holidays, 5
weeks of vacation, (typically 3 weeks
at summer shutdown, 1 week at
Christmas, 1 week flexible). Ten
years gets 3 days extra, and 25
years gets 2 days more.
Vacation/holiday pay is time-and-athird.
2 shift rotation:
days
- 12.5%
afternoons - 20%
nights
- 33%
3 shift rotation:
all shifts - 27.5%
Halewood
Jaguar (Ford)
37.5 hours/week
Work day is 7.5 hours plus 30
minute unpaid lunch.
Contract has 8 paid holidays, 5
weeks of vacation, (typically 3 weeks
at summer shutdown, 1 week at
Christmas, 1 week flexible). Ten
years gets 3 days extra, and 25
years gets 2 days more.
Vacation/holiday pay is time-and-athird.
2 shift rotation:
days
- 12.5%
afternoons - 20%
nights
- 33%
3 shift rotation:
all shifts - 27.5%
Page 30 of 42
Ellesmere
Port Vauxhall
(GM)
37.5 hours/week average.
Day shift - 39 hrs - 8.5 hours
Mon.-Thur. with a paid lunch,
and 5 hours Fri. Night shift is 36
hours - 9 hours Mon.-Thur. (paid
lunch).
2 shift rotation: days
- 10%
nights
- 33%
3 shift rotation:
all shifts
- 28%
Page 31 of 42
Collective Agreement Comparison - Part 2
Overtime
Cologne
Ford
Stuttgart
Daimler
The 8 th hour is banked, the next 2
hours ov overtime have a premium
of 25%, after that the premium is
50%. If Saturday is worked the
premium is 25% for up to 10 o/t
hours in the week, then 50%.
Sunday is 50%.
Russelsheim
Opel (GM)
Weekly overtime:
1-6 hours - 125%
7-8 hours - 140%
>8 hours - 150%
Saturdays (rare) are no premium if
part of the 31 or 37.5 hour week,
otherwise as above. Sundays 70% plus banked hrs. Overtime is
limited to 100 hours/yr (legislated),
anything over must be banked and
taken as vacation.
Volvo
Goteborg
Monday - Friday - 160%
Weekend/holiday - 180% to 190%.
Maximum 48hrs/wk, 200 hrs.
overtime/year.
Employee has option of taking
premium in pay and banking the
straight time hours.
Pensions
Wages
Legislated, contributory.
Workers pay 9% of income,
matched by employer.
Pension is 65% of 5 yr. avg.
Monthly pay ranges from
DM 4838 (about $3629)
to DM 6743 ($5057)
Legislated, contributory.
Workers pay 9% of income,
matched by employer.
Pension is 65% of last
years net income. Daimler
tops up to 80%.
About $4000/month,
plus bonuses to equal
close to $53,000
annually for straight
time.
The equivalent of
$26.52 to $30.69 per
hour, on a 35 hour
week.
At one time government
provided a pension of 60%
- 65% of regular salary.
This was changed in 1997,
and now provides only
40%-50%. The Union
negotiates a top-up.
Saab
Trollhaten
Grades from 5 - 11,
most trades are 10.
Base pay is only 65%
with up to 7% based on
seniority, up to 10% for
quality, and 25% for
individual flex
measures.
5 job classifications, 10
levels each based on
individual criteria.
Bridgend
Ford
First 2 hours any day - time-andone-third,
>2 hours - time-and-a-half.
Saturday - time-and-a-half.
Sunday - double time.
Tradesperson with 30
years would receive a
pension of about 227
pounds/week (about
$533C). This is about 61%
of the base wage.
Trades base rate is
$23.50/hr., bonuses for
gp leader (10%), elecmech (5%), electronics
(5%), and production
team(5%).
Halewood
Jaguar (Ford)
First 2 hours any day - time-andone-third,
>2 hours - time-and-a-half.
Saturday - time-and-a-half.
Sunday - double time.
Worker with 25 years would
receive a pension of about
180 pounds/week (
$423C).
Some workers have
received buyouts of 50,000
pounds or even 67,000
pounds.
Trades base rate is
$23.50/hr., with
bonuses for group
leader (10%), elecmech (5%), and
electronics (5%).
Page 32 of 42
Ellesmere
Port Vauxhall
(GM)
Trades rates are from
9.4 to 10.4 pounds/hr.,
about $21.30 to $23.50
per hour.
Page 33 of 42
(Continued from page 29)
What is really notable, is that all the European Unions have negotiated substantial
vacation bonuses, so that whenever vacation is taken workers get their regular pay plus
a bonus. In the UK this bonus is 33 1/3% for both vacation days and public holidays.
In Sweden the formula is more complicated, but amounts to about 22%. In this area the
IG Metall is again in the forefront - German workers get their regular pay plus 50%
whenever they are on vacation. They also get a bonus of up to one month’s pay at
Christmas.
Shift Premiums
In Europe there is a much stronger sense that shift work is a substantial inconvenience
for workers, and the Unions have ensured that companies pay a hefty penalty for it. In
Germany for example, afternoon shift was from 10% to 20% and nights was from 20%
to 30%. Premiums were even higher in the UK, where night shift gets 33%. In fact, in
the UK workers who work on a two-shift rotation get a 10% premium for day shift!
Workers on a three-shift rotation get 28% for all three shifts! In Sweden there is also a
very high premium for afternoon or night shift, but it is paid as an annual lump sum.
The chart on pages 30 and 31 summarizes the collective agreement comparisons.
Page 34 of 42
Chapter 7: Concluding Observations
There isn’t one best way of dealing with the maintenance, repair and installation of plant
equipment or for that matter the construction tasks associated with production facilities.
Our own experience and what we have learned in European plants points to a variety of
ways of organizing skilled trades work as well as a number of options for harnessing the
skill required for production maintenance. In Germany it is handled by making all
workers apprenticed skilled trades, in Sweden it’s handled for the most part without
apprenticed skilled trades.
How the work of the skilled trades is organized is often country specific. It is a product
of government policy, school systems, labour laws, longstanding provisions in collective
agreements and the relationships between worker organizations and management.
What works in Germany may simply be inappropriate for Sweden. What works in
Sweden may never make sense in England. Different approaches have different
strengths to recommend them and different consequences which detract from them.
Our experience in Europe bears this out.
But something else is happening. In the midst of these country specific contexts,
companies are arguing that automotive production should conform to a global model.
One that is to be implemented regardless of regional and national differences. The
emerging model of choice now combines elements of modular production in technical
terms and flexibility in labour terms.
National automotive production systems are currently being shaped by situational
differences and global trends. Whatever the starting point, wherever things are at
present the trend is to try to tip the balance in managements’ favour. In Germany the
demand is to make working hours more flexible, in Sweden to make wages more flexible,
in England to make work practices more flexible.
Often the particular demands have little to do with making production more effective.
In Europe there is a compression of skilled trades work and responsibilities. At the high
end of repair and maintenance we saw vendors and contractors take over the work. At
the other end, the more routine activities of minor preventative maintenance were
transferred to production workers. These shifts limited the skilled trades to a mid-range
band of skills and work. At the one end it meant deskilling and at both ends it meant a
loss of skilled trades jobs.
In other circumstances we saw a diffusion of the skill associated with the trades. At the
extreme was Germany where production work has been transferred entirely to the skilled
Page 35 of 42
trades; in England trades in Integrated Manufacturing teams were engaged in production
tasks and trades could be used to cover for late and absent production workers. While
some of these initiatives have to be evaluated on their own merits, the push for ‘flexibility’
has little to recommend it for our workplaces.
Our union and its skilled trades have been more successful than the Europeans in
defending skilled trades’ work. We do not have the same blurring between trades and
production, nor have the corporations been successful in forcing multiskilling or single
classifications, as they have with the “mechatronics” in Stuttgart or the “mech-elecs” in
Jaguar. In addition, our trades in most locations, have maintained a greater influence
over technical training, are less reliant on vendors, and are involved in a broader range
of skilled trades work (especially construction work).
Our success in resisting the ‘restructuring for flexibility’ agenda management set for the
skilled trades, has been accomplished without compromising production effectiveness.
Our plants seem to equal or surpass the European plants we visited in terms of
productivity and technology. We have fast response times to breakdowns, faster
production lines with more volume, fewer production workers and as much or more
equipment to maintain than any of the plants we toured.
Our system, while not without problems, measures up well. Part of the explanation for
this is found in the skill and knowledge of our skilled trades. Part of it is found in the
benefits of comprehensive apprenticeships in base trades which allows workers to learn
and adapt to new processes and technology. And part of the explanation is found in our
strong skilled trade’s contract language and CAW bargaining policies.
Our goal is to increase the breadth of skill in a manner that allows a skilled trades
journeyman or woman to better and more effectively practice their trade in the context
of automotive production.
Our goal is to increase the depth of the trade so that we can continue to evolve with new
technologies, adapt to new technical processes and contribute to production
effectiveness.
Our goal is to increase job security in the plant and over a longer term to increase skilled
trades employment security through the achievement of a recognized and transferrable
trade.
Our goal is to strengthen apprentice programs and to broaden access to them.
And our goal is always to help build the union.
Skilled trades work changes over time. Some skilled trades classifications disappear,
others evolve. Sometimes new plant processes or technologies occasion a shift in work
Page 36 of 42
of the skilled trades and which trade it is that does the work. The issue isn’t whether or
not change happens. The goal is not to preserve the ‘status quo’ because we don’t want
change. Instead, in evaluating any change, we ask a set of questions:
<
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How does it affect the breadth and depth of skilled trades work?
How will it affect the next generation of skilled trades workers?
How does it affect the solidarity between production and the skilled trades?
How does it affect job security?
How does it affect the strength of our union?
SUMMARY
Industrial Restructuring:
Europe:
Europe is in the midst of a restructuring in the auto industry where jobs
are lost, domestic firms taken over, plants closed and production is
relocated.
Canada:
In Canada, GM had been restructuring for a number of years and now
DCX and Ford have followed suit. The current downturn and loss of jobs
as companies lay-off workers and close plants is more significant than
what we have previously faced.
Our Views:
Despite their different situations currently, and different history, unions
in the three countries we visited are responding to corporate
restructuring. They are fighting back and increasingly trying to build
international ties. In England, Ford’s ‘downsizing’ of thousands of
workers is being achieved through ‘voluntary redundancy’ agreements
instead of layoffs. And unions from across Europe effectively
coordinated a strategy through the European Employees Forum which
forced GM to adopt a much different approach to its restructuring plans.
In Canada we are now facing a period of automotive restructuring.
Plant Restructuring: Modular Production:
Europe:
Europe is further ahead with plant restructuring as marked by initiatives
around supplier parks, ‘flexplants’ and modular production.
Accompanying these changes are demands for more flexible agreements
and work practices. European plants, such as the Jaguar plant, are
being held up as the benchmark for North American industry.
Page 37 of 42
Canada:
In North America similar initiatives around flexplants, modularity and
supplier parks are beginning to accompany announcements of new
investment. In Canada, once investment picks up we will probably face
similar developments.
Our Views:
Unions in Europe have responded in a number of ways to company
demands for plant restructuring. The responses range from what seems
like outright acceptance to more resistance and an effort to mold and
adapt the new systems into workable solutions for retaining product, new
investment and job security. At times the variation in response can be
seen within the same union at different workplaces. In Canada our
outsourcing language establishes a solid foundation on which to build an
effective response to plant restructuring. Of interest is the discussion in
Germany where the union talked about the need to respond to supplier
parks with umbrella agreements that would include parts workers.
Outsourcing and Contracting Out:
Europe:
In European countries there is often no protection, against outsourcing
and contracting out of skilled trades work.
Canada:
The strength and relative uniqueness of our work ownership language is
brought into sharp relief against the background of European plants.
Our Views:
Our work ownership language is a major achievement. It protects not only
the skills but the jobs of our skilled trades. The language gives us greater
control on the outsourcing of work in all areas including construction,
tooling, installation and maintenance.
Operating Systems and Production Maintenance:
Europe:
Company operating systems, of which total productive maintenance is
part, are being implemented across countries and across plants.
Production workers, to varying degrees, perform both predictive and
preventative maintenance work. These systems seem to have met with
little resistance.
Canada:
In Canada CAW skilled trades have a more cautious approach to these
systems.
Our Views:
There are times when specific tasks such as the changing of robot tips
Page 38 of 42
have been transferred from one group of workers to another but for the
most part the transfer of work is limited. In Canada, companies have
somewhat different approaches and are at different places in their
operating system initiatives. In general we have talked about the need for
union guidelines and the need to negotiate protections. In particular our
skilled trades approach has been to modify both the content and the
implementation of TPM (total productive maintenance) in such a way as
to provide effective preventative and predictive maintenance while
preserving skilled trades control of maintenance work.
Trade Integration with Production Work:
Europe:
In some places in Europe Integrated Manufacturing Teams include both
trades and production who perform each others jobs when required.
Workers seem to have accepted these changes with little resistance.
Canada:
While we have skilled trades dedicated to specific areas of plants such
as the body shop we have not faced the same degree of production and
skilled trades integration as we saw in Europe.
Our Views:
While these initiatives may increase managerial flexibility we saw no
advantage to these practices for workers or even, in the longer term, for
the companies.
Lines of Demarcation:
Europe:
The concept of lines of demarcation was regarded much differently in
most European plants. There are different reasons for this in different
countries. In Germany it has something to do with the fact that all
production workers have an apprenticed trade, in Sweden because
apprenticeship is not the route to maintenance and repair jobs and in
England because of the power management has had in demanding
change.
Canada:
Lines of demarcation, for the most part, are viewed as much more
important in our plants where they are seen as providing a measure of
job and income protection as well as preserving the skill of the trade.
Our Views:
In our plants, lines of demarcation are guidelines set down to describe
Page 39 of 42
responsibilities relating to each trade. While many trades share some of
these responsibilities such as blueprint reading, using precision
instruments, using hand tools, laying out work and understanding
machinery, the lines of demarcation are used as guidelines to help
determine the scope of work in each classification. There are always
pressures on classifications and we will continue to deal with these but
it remains important to argue for and strengthen core trades.
New Skilled Trade’s Work:
Europe:
In Europe some skilled trades are moving into new areas previously the
responsibility of clerks, planners, engineers and technicians.
Canada:
Some of our plants are also moving in this direction. Trades are involved,
for instance, in model launch teams. In some plants we have skilled
trades ‘design’ classifications and more generally as certification and
predictive maintenance become more critical to running the plants more
trades are taking on planning and coordinating functions.
Our Views:
The move into non traditional areas is to be encouraged. It provides new
opportunities for the skilled trades and if it becomes more systematic it
can provide a skill ladder and career path in our workplaces.
Wage Structures:
Europe:
Skilled trades wages in Europe are more flexible than ours. There are
different wage grades and levels within grades and wage rates are
influenced by varying factors such as skill and knowledge, flexibility, local
agreements, individual assessments, productivity and so on. On the
other hand there are regular and relatively high levels of vacation pay,
Christmas bonuses and shift premiums. Vacations are compulsory and
vacation pay is paid out when the time is taken.
Canada:
Our wage system is much different. It is a product of collective
bargaining and less subject to management discretion. It is also more
solidaristic. We have been more successful at taking wages out of
competition. In addition our wage differential between production and
skilled trades recognizes both the commonality and the differences
between production and the skilled trades.
Our Views:
The European wage structure has too many levels and is dependent on
Page 40 of 42
too many variables. The resulting wages are uneven between workers
across the industry. On the other hand vacation pay, bonuses and shift
premiums in our workplaces are not as high as they are in Europe.
Apprentices:
Europe:
Apprentices in Germany enroll in apprenticeships right out of school.
They are much younger than our apprentices. The companies have
developed modern and well equipped apprentice training facilities. They
are paid for by the company and apprentices are not part of the plant’s
head count. Apprentices are paid about 1/3 of the skilled trades rate.
Upon completion of the apprenticeship program workers are assigned
to production jobs.
In Sweden there isn’t much of a formal
apprenticeship program and in England the apprenticeship program is
more similar to ours.
Canada:
Our apprenticeships are time based, there is more on-the-floor training
than in Germany and more opportunities for production workers to get
into apprenticeships.
Our Views:
Our apprenticeship system compares well to the one in Germany in terms
of what apprentices learn. What we lack is the company commitment to
training facilities and the practice of keeping apprentices out of the head
count. What we need is a selection process that provides opportunities
for production workers and more opportunities for youth.
Training:
Europe:
Technical upgrading and other skilled trades training didn’t seem to be
high on the European agenda. The extensive use of contractors and
vendors reinforces the point.
Canada:
Skilled trades training is more important for our union both in terms of the
opportunities for training and also our influence over the design and
delivery of the training.
Our Views:
There is an inverse relationship between the amount of training and the
use of outside personnel. By upgrading our skills and knowledge we can
be successful in keeping outside contractors and vendors to a minimum
in our plants. We can continue to adapt to new technical processes and
ultimately help shape the direction of technological change. Our
Page 41 of 42
collective agreements have solid provisions for technical training upon
which we can continue to build.
Union Structures:
Europe:
Skilled trades in Europe are either completely segregated from
production workers in separate unions as in the case of England or are
immersed in unions that don’t provide any structures or processes for
skilled trades recognition.
Canada:
We are relatively unique in our model of industrial unionism which
includes such a breadth and depth of skilled trades structures, policies
and programs.
Our Views:
We are even more impressed with our union ---- its structures, policies,
achievements and commitment to the skilled trades.
DR\sl opeiu343 - February 2002
C:\unzipped\EUROPE trip-english\EUROPE trip-english.wpd
Page 42 of 42

Developments in Skilled Trades: A Report on European Auto Plants

Transcription

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