An Imberman and DeForest client making carbide tooling referred us to a friend who ran a bearings plant.This East Coast bearings manufacturer was unionized and produced a wide variety of bearings for use in material handling equipment used in industrial settings. OEM customers had two concerns. First, was pricing. They insisted on annual contracts calling for price cuts every year which made improved productivity critical. Second, bearings distributors wanted this bearing maker to improve delivery reliability. In addition to these concerns, labor management relations were only fair.
Under the guidance of an Imberman and DeForest executive, we invited a joint labor/management committee to work with us to develop a Gainsharing Plan. We presented the company’s concerns in a problem solving mode, and emphasized “it is better to fight the competition rather than each other.” After a certain amount of venting, the committee began productive work. The chart shows the results.