PM Unit 2 IP - Reestablishing Employee Confidence 1...

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Reestablishing Employee Confidence 1 Lorraine Huff August 15, 2009 MGT110-0903A-11: Project Management Unit 2 Individual Project Reestablishing Employee Confidence
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Reestablishing Employee Confidence 2 Introduction IFCO SYSTEMS is North America’s leading Pallet-Management-Services company, specializing in the procurement, reconditioning and distribution of wood pallets to and from the manufacturing and retail sectors. Pallets are used in virtually all industries that transport products. Every year, approximately 2.1 billion wooden pallets are in circulation in the United States. IFCO Systems states that they believe in fair treatment of their employees that make a labor union unnecessary. The company also initiated an incentive program stating that any employee who reached their production rate before the allotted eight hour time, would be paid for the full eight hour shift. In the past three years, the production facility in Martin, Tennessee has been one of the top producing factories in the company. The factory is divided into two departments; production and saw room. Production is made up of several tables that build specific pieces of the wooden crates. There are, at most, 19 tables in production running to fill customer orders, along with two saw lines, which requires 8 people per line. Production tables maintain 2 or four employees, depending on which pieces are being built. IFCO Systems recently decided to minimize the number of breaks taken by employees to the minimum state requirements of one unpaid thirty minute meal break within an eight hour period. In the past, employees were given two paid fifteen minute breaks and one unpaid thirty minute break during an eight hour shift. In the hopes of raising productivity rates, IFCO decided to eliminate the two fifteen minute breaks and only allow one unpaid thirty minute meal break. The company replaced the breaks with a new position opening; a “floater”. The duties of this position will entail circulating the plant and relieving workers for rest room breaks who need them, by taking over their job so production will not have to stop.
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Reestablishing Employee Confidence 3 This decision has caused a tremendous uproar within the facility employees, who believe that they are being treated unfairly due to, what they consider to be, extreme working conditions. The average temperature in the factory in the summer months is around one hundred degrees because there is minimum climate control; only fans that circulate hot, humid air and company supplied coolers for drinking water. In the winter months, the average temperature is between thirty and forty degrees. The positions are considered excessive physical labor; building large wooden shipping crates in pieces, that are assembled around customer products. Most of the positions in the factory require the use of large, pneumatic staple and nail guns and industrial lumber saws. The elimination of these breaks to follow the minimum state requirements of one
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This note was uploaded on 01/18/2012 for the course PROJECT MA MGT-600 taught by Professor Dr.bettyross during the Spring '10 term at American InterContinental University.

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PM Unit 2 IP - Reestablishing Employee Confidence 1...

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