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Case Studies - Dow Corning Australia Pty Ltd

Blacktown Site Agreement 1996

Dow Corning's Blacktown operation is a manufacturing finishing plant, producing silicone polymers, sealants, emulsions and fluids. A large proportion of finished product is exported to South East Asia, China in particular.

The enterprise agreement, approved by the NSW Industrial Relations Commission in April 1997 covers 40 employees on the factory floor, involved in mixing, packaging and materials handling.

• The introduction of a four level competency structure. New wage schedule with competency based rates well above award rates of pay
• "workplace values and consultation" are promoted through work group meetings and a joint consultative committee. Employees are recognised as a source of ideas
• a commitment to work towards job security, welcoming union involvement and problem solving by consultation
• promotion of multiskilling of staff and work flexibility.

The company has a general commitment towards job security and welcomes union involvement. Keith Eadie, organiser for the Australian Worker's Union, believes that the current agreement gives employees one of the best opportunities for job security in Sydney. The agreement provides for a new wages schedule, with competency based rates well above the award rates. Award classifications have been replaced by a four level competency structure: entry level, training level, skilled level and multiskilled level.

The introduction of this structure has been an immense exercise. Standard operating procedures in plain English had to be written for each section, employees introduced to the new procedures and encouraged to achieve the skilled level. Business needs dictate employee progression to the multiskilled level.

Reforms in the chemical industry are reinforcing the competency based approach. The competency classifications can be aligned with those contained in the Chemical Operators Certificate, making it possible to introduce self paced training which is nationally recognised. This makes the competencies gained at work portable and credited against the Chemical Operators Certificate. In the future a TAFE trainer will train employees on-site. Keith Eadie believes that as the training and career paths are built on the NSW Chemical and Oil Industry Training Standards it guarantees a strong, multiskilled and self-controlled workforce in the future.

Multiskilling and flexibility are also promoted. Even before the competency based classifications were introduced the nature of work had changed. Operators working as a team, plan their work for the week from a production schedule. Employees may be asked to work in another unit on a temporary/permanent basis to ensure efficient operation of the plant.

Shift lengths have been increased from a maximum of 10 hours per day under the award to a maximum of 12 hours under the agreement. Shifts may be worked over a 5 or 7 day roster and vary between 8 and 12 hours. Ordinary hours have been reduced from 40 hours per week under the award to 38 hours. The daily span of ordinary hours has been reduced and the agreement allows for the accrual of up to 12 rostered days off per year. Apart from the competency based wages schedule a bonus system operates on site. This is calculated on the performance of the Australasian regional group as a whole. There is also an individual reward program where employees are nominated by their peers in recognition of special effort. Rewards may be in the form of a dinner for two, vouchers or other gifts.

Concepts of workplace values and skills in problem solving through consultation are promoted through work group meetings and a joint consultative committee. Employees are recognised as the source from which ideas, actions and performance flow. The mechanism to gather these ideas for more efficient work practices starts with the Natural Work Group meeting. They can also be taken to the Joint Consultative Committee (J-Com) which comprises an employee representative from each work group and the managers of the various areas.

J-Com's next task will be negotiating the next site agreement. Future items for their agenda will include ways to improve two-way communication and a review of the reward system.

The smooth implementation of the competency based classification structure can be directly accredited to these consultative mechanisms. Keith Eadie believes that "with J-Com having strong commitment this will lead to a team worker governance of the site".

Overall, Keith Eadie believes that "AWU members through their natural work groups and the new Joint Consultative Committee (J-Com.) will make sure that Dow Corning's Blacktown site remains the top producer of sealants for domestic and industry requirements in Australia".