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PAY FOR SKILLS - Modern Times Workplace

PAY FOR SKILLS25 MinutesIntroduction:The success of L-SE is due largely to the involve- ment of all employees in all aspects of the busi-ness. Not only did they design their own worksystem, they also figured out a key integratedmechanism, an innovative pay-for- SKILLS plan link-ing continuous training with meaningful work. Inthis video you will get first hand look at L-SE sunique employee-designed and employee-admin-istered Pay & Progression plan . You will alsolearn how they support this system with extensivetraining, formal and informal, so that L-SE is trulya learning organization.

PAY FOR SKILLS 25 Minutes Introduction: The success of L-SE is due largely to the involve-ment of all employees in all aspects of the busi-ness.

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Transcription of PAY FOR SKILLS - Modern Times Workplace

1 PAY FOR SKILLS25 MinutesIntroduction:The success of L-SE is due largely to the involve- ment of all employees in all aspects of the busi-ness. Not only did they design their own worksystem, they also figured out a key integratedmechanism, an innovative pay-for- SKILLS plan link-ing continuous training with meaningful work. Inthis video you will get first hand look at L-SE sunique employee-designed and employee-admin-istered Pay & Progression plan . You will alsolearn how they support this system with extensivetraining, formal and informal, so that L-SE is trulya learning organization.

2 At L-SE, both man-agement and workers see Pay for SKILLS as the fair-est pay plan they have ever is a contiuous process plant. Workers coat20-ton steel coils with zinc to make them highlyresistant to corrosion. The steel is unrolled,cleaned, coated with zinc or galvanized in elec-troplating tanks, cleaned again, inspected for de-fects, coated with oil, and rolled into coils againat the other end. To keep the process continuous,workers weld each coil to a previous coil. Coilsare cut apart at the end. The treated steel is usedto make automobile exteriors, garage doors andother products that will be exposed to potentiallydamaging weather quality is extremely important.

3 Surface de-fects can cost tens of thousands of dollars. As steelis pulled through the process, a lot can go and dirt on the rollers may dent or bruisethe surface, rendering it useless for automobilebodies. The amount of zinc deposited on the sur-face must be exactly right, neither less than thecustomer requires or more which drives up variable must be controlled without shut-ting down the line the ultimate cost-escalator andproduction-killer. L-SE s multi-skilled teams havebecome so adept at this delicate balancing act, thatthey have achieved a level of quality exceedingthe standards set by similar operations in multi-skill environment is supported by oneof the most innovative pay for SKILLS plans in theworld.

4 The L-SE Pay & Progression plan is amodel system for rewarding people exactly whatis most needed for individual AND company suc-cess. Pay-for- SKILLS promotes people wanting tolearn continuously! And, it encompasses morethan just equipment training. There are IntegratedProcess Control SKILLS , statistical SKILLS , and peo-ple SKILLS . Our plan even rewards people for theirparticipation in committees. Some people say, isn t that wasteful paying highwages to yes, they are highly paidhere, but they have broader SKILLS and there arefewer of them than at our competitors.

5 I think thisconcept can be applied in all industries. -Don Vernon General Manager, L-SEPay and Progression Plan:The pay and progression plan established withinthe L-SE & USWA Local 9126 collective agree- ment builds upon 4 major skill levels, and a 6-month probationary and Progression Matrix1993 LABOR AGREEMENTM onthly Salaries Effective Effective 08-01-93 08-01-94 Fully QualifiedADVANCED $2915 $3027 Fully QualifiedINTERMEDIATE $2621 $2733 Fully QualifiedPROCESS TECHNICIAN $2312 $2424 Fully QualifiedUTILITY $1926 $2038 ProbationaryENTRY $1726 $1726I.

6 Utility level skillsFor a person that s first hired, he has to go througha six month probationary period at the Entry level of pay. During this period, the employeedoes mostly the utility jobs--packaging the coils,operating a crane, loading the trucks, unloadingthe trucks. At the end of the probationary period,the new employee is expected to demonstrate theskills that are listed on a Utility position checklist includes demonstrated awarenessof safety hazards and procedures associated withutility assignments, and attendance at a minimumof 2 meetings of any worksite committee.

7 If theperson passes the ckecklist, they are given theirfirst raise to the Fully Qualitified Utility Level,and allowed to start training to become a ProcessTechnician. Some people take a short time. Some will takelonger. There s no time limit. When the trainer iscomfortable with them operating in that area solo,and they demonstrate they can do it, then they aregiven a pay raise. -Russ Hein, Process Technician,Pay & Progression Committee MemberAfter completion of any 2 Technician skill areas,an employee is eligible to train and receive wageincreases for Intermediate level SKILLS .

8 However,the percentage of pay for Intermediate tasks can-not exceed the percentage of one s Process Tech-nician Intermediate SKILLS :At this level, employees choose a particular Main-tenance skill track either Process and Mechani-cal, or Electronic and Instrumentation. Eachtrack has a series of minor, medium, and majortasks to be mastered. The plant s mechanical orelectric engineers check-off each candidate sprogress. Each check-off yields a particular in-crease in Minor SKILLS provide a 2% increase in Mediums provide 4% increase in pay.

9 TheMajors yield 8% increase in pay. In all, to be paidthe maximum of the Intermediate level, an em-ployee must demonstrate competence in 5 Majortasks (40%), 10 Medium tasks (40%), and 10 Mi-nor tasks (20%).II. Process Technician skillsThe Process Technician level is divided into 5operational skill areas:Entry Section, Process Section, Inspection, De-livery and Chemical Plant. Each of the 5 Proc-ess Technician areas has a corresponding check-list which must be passed prior to receiving a sal-ary increase equal to 20% of the Fully QualifiedProcess Technician an employee has been checked-off on 80%of the Intermediate SKILLS they are eligible to pur-sue Advanced SKILLS , up to 50% of the Advancedlevel monies available.

10 On completion of theirIntermediate level skill training, employees canseek training to receive the Fully Qualified Ad-vanced level of Advanced SKILLS :Part (25%) of the advanced SKILLS money is earnedthrough participation in formal training within ei-ther one of the Maintenance task specialties, Me-chanical or Electrical. Another portion (up to 40%)of the Advanced monies is earned through work-ing 1200 hours in two of the Process Technicianareas (Entry, Delivery, etc.).During the early years of L-SE, the Advanced skillmonies were tied almost exclusively to formalmaintenance training.


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