Norsk Hydro's new approach takes root

Article Abstract:

Norsk Hydro Fertilizers Ltd of Great Britain signed a single union arrangement with the Transport and General Workers Union (TGWU) in 1985. The arrangement was unusual because Norsk Hydro was a traditional, multi-union industrial company. The agreement radically altered working conditions at Norsk Hydro. The changes introduced at the company include a six-shift work schedule, a single status for workers, and a three year pay settlement. Since the new contract was initiated, industrial relations at the company have improved, and Norsk Hydro has gone from being a money-losing operation to a profitable and competitive company. The success of the company has been attributed to a thoughtful cost management program and to the creation of a positive environment that stresses cooperation between departments as well as between labor and management.

Analysis, Human resource management, Norsk Hydro Fertilizers Ltd.

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Engineering construction's IR 'miracle'

Article Abstract:

The once strike-plagued British engineering construction industry has vastly improved its labor relations since the introduction of the National Agreement in Nov 1981 by the National Economic Development Office. The agreement established tighter control guidelines for the previous two-tier payment system which had accounted for endless on-site negotiations and work delays. A National Joint Council consisting of 16 employers and 16 trade union representatives is also set up as the final arbiter for disputes. More flexible work practices, such as double day-shifts, under the agreement have greatly increased productivity and eliminated the need for overtime.

Construction industry, Laws, regulations and rules, Economic policy, Great Britain, United Kingdom. National Economic Development Office

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