Michelin Case Study - Effective Labour Flexibility with employee security
The Michelin tyre plant in Dundee employees approximately 900 people producing up to 1,000 tyres/hour, 24hrs/day, 7 days per week. Increasingly the market shows more and more instability of demand with very large swings month to month. In addition with an aim of reducing stocks and lean manufacturing this means the Factory is faced with ever more volatility of demand.
The Factory operates Self Directed Work teams and has spent significant time and resources developing a team which is now capable of operating without direct management supervision outside office hours Monday to Friday. This means that the sometimes standard approach of short term contracted or zero hours contracted labour doesn't fit.
The Factory, working in partnership with the Unite Union on site, has developed an alternative where 3 of the 5 production teams have a contract which allows them to be contracted to work a number of days from 70% up to 100%, with a minimum of 1 weeks' notice. In addition, every employee from the shop floor to the Factory Manager has a contract which offers additional flexibility through training days, banking days and days not working but paid at 50%. The total flexibility means the Factory can operate between +20% and -24% of the planned open days.
This mechanism means that the Factory can invest in the long term development of its workforce, the teams are stable, the cost of the Factory can be flexed to respond to variation in demand and everyone has a permanent contract of employment.
Return to previous page
Go to top of page