KOMATSU
"I believe one of the results of improving communication across the organisation is increased understanding and loyalty"
- Tracey Wilson, HR Manager, Komatsu UK Ltd.
Since becoming a significant part of the Tyneside industrial landscape in 1985, Komatsu have consolidated and expanded their global reputation for quality. The Company provides excellent terms and conditions to its workforce of around 600 employees.
The company places great value on effective communication processes and ongoing and regular dialogue with the well established Company wide Advisory Council which meets every month. The Council comprises nominated Managers, elected workforce representatives and an officer from the Amicus Trade Union who have a recognition agreement with the Company.
The Advisory Council has proved to be effective as a negotiating forum, largely enabling annual or bi-annual pay increases to be agreed harmoniously with only occasional recourse to the next stage of “procedure” involving Acas in a conciliatory role.
This changed significantly during 2003,when Management were unable to meet workforce financial aspirations which had mainly been fuelled by challenging work demands experienced during the previous two years. Subsequent Acas involvement was unable to broker an agreement which resulted in the parties having to take the unprecedented step of invoking pendulum arbitration as the final phase of their procedures.
This required Management and Amicus agreeing mutually acceptable “terms of reference”, with assistance from Acas This document was dispatched to the Acas head office in London who duly appointed an Independent arbitrator from a panel of appropriately skilled and experienced people.
Both sides subsequently dispatched written submissions outlining their proposals for a settlement to the appointed individual, on the understanding that the arbitrator would ultimately have to support one of the proposals in its entirety.
Management and Trade Union representatives were then invited to attend a meeting with the arbitrator at the Acas Regional office. Members of Komatsu’s Advisory Council were also present. The meeting lasted almost a full day, during which both sides were encouraged to ask Questions and outline and summarise their respective cases. The arbitrator was very professional, and ensured that all present had an opportunity to contribute Although well controlled the process was quite informal.
Approximately two weeks later the arbitrator produced his decision and the rational behind it, in writing, to both sides in the dispute.
On this occasion the Management proposal prevailed, but all those involved commented that they felt that they had been given the opportunity to fully put forward their case, and accepted the outcome.
