APPENDIX 2
Case Study
Maintaining Advantage in Working Time
Change at Siemens Power Generation
Part of the Siemens Group of Companies, Siemens
Power Generation Limited (SPG) is one of the leading suppliers
in the global Electronic Capital Goods market place.
The Site Operations Division undertakes maintenance
and repair projects at steam and gas power stations throughout
the world. These projects, termed "outages" are under
the supervision of Staff Service Engineers each with their own
range of technical specialisms and skills. The period between
April and October is recognised as the UK "outage season"
although domestic and international demand trends are increasingly
expanding this window.
With 41 per cent of the Staff Service Engineers
reaching 65 years of age within the next 10 years, the Company
has established initiatives to harness and pass-on their accumulated
skills to the next generation of Engineers.
Client organisations are increasingly insisting
upon cover being provided by fully qualified personnel on a 24/7
basis, and also demand that suppliers comply fully with current
legislation which paradoxically includes the Working Time Regulations
(WTRs) and the 48-hour average limit.
Against such a background, the group of 67 Engineers
were committed to very long hours under increasingly demanding
circumstances. SPG identified a series of clear and often interlinked
issues which highlighted their key concerns:
— An exhausted workforce and an increase
in quality and health and safety problems.
— Excessive working hours being maintained
over extended periods of time.
— Workforce perception that this working
environment is inadequately compensated.
— High levels of overtime required
and being taken up.
— Inability of staff to take regular
periods of time-off.
— The nationally agreed shift patterns
were inflexible and very limited.
— There were insufficient Service Engineers
to populate a less demanding 4 team x 3-shift pattern.
— Whilst the majority of the Engineers
have opted-out of the hours-related element of the WTR, SPG recognises
that the existing culture was neither sustainable or defensible.
— The risk that contract commitments
may be compromised by the above issues.
Working Time Solutions Director of Consultancy,
Jim Whittam agreed the terms of a Feasibility Study with SPG Management
with the remit of accommodating the requirements of the WTR, improving
access to regular time-off, ensuring best utilisation of existing
resources and skills and also establishing the basis of a revised
remuneration package for Engineers.
Whittam's primary recommendation was for SPG
to balance their commitment to the spirit of the WTR and to client
organisations by adopting the maximum number of hours allowed
within a workforce agreement based upon a 48 hour week over a
52-week reference period. Netted-back for holiday entitlement,
this gave each engineer a reservoir of 2,188 hours per year spread
over 228 working days. Secondly, to meet client stipulations on
the uninterrupted availability of skills, he proposed a "buddy"
system which paired Engineers within a rota pattern with complementary
but opposing primary and secondary skills. The structure of the
rota pattern options being such that whenever one Engineer of
a given pair was on rest, his "buddy" would always be
rostered to be present.
Proposals were developed which accommodated
working time arrangements where leisure time could be pre-rostered,
and those where holiday time-off would be taken "on request".
The latter approach was eventually recognised as being most appropriate
to the needs and culture of SPG.
In summary, the Project allowed Engineers to
work an "outage mode" pattern for 24 weeks in the year.
During these weeks, which did not need to be consecutive, Engineers
would attend on 12-hour shifts netted back to 11.5 hours by virtue
of an unpaid 30 minute break. An average of five shifts would
be worked per week yielding a nominal 57.5 hour week. Consuming
1380 hours in this mode, the balance of 798 hours would be worked
in the remaining 21.5 working weeks, equating to a nominal 37
hours per week for this period. The working pattern also provides
a minimum of two days off in a rolling 14-day period in compliance
with WTR requirements.
A comprehensive review of the reward structure
provided the basis for a new and competitive salary package for
Engineers which removed or consolidated historical allowances
and introduced significant improvements in the form of medical
cover and pension arrangements. Engineers were also authorised
to participate in the Group's Car Purchase scheme.
WTS also recommended that the establishment
should be strengthened by the recruitment and training of additional
engineers, thus reducing the burden upon individual personnel.
The structure of the proposed patterns of work effectively placed
a cap upon hours worked which ensured cost neutrality.
SPG Management reflected favourably on the Project
and implemented in June 2001, since when the system has consistently
delivered against the set objectives. Compliance with the WTRs
and importantly to the company a better worklife balance and quality
of life of SPG employees has been achieved. The system proves
compliance with client requirements in terms of Health, Safety
and Quality in the working environment. Finally there have been
reduced costs and much greater predictability of cost for the
company through increased productivity and improved working practices
as a result of moving away from the established "overtime
culture" formerly in place.
Active control and management systems were developed
and introduced in conjunction with Working Time Solutions and
these have had a significant impact on the quality and availability
of information with regard to contract planning and utilisation
of labour.
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