A collaborative approach

The attitude the parties have to one another in pursuing these opportunities demonstrates commitment to one another based on action.

When asked if the parties had adopted some form of agreement or written expression of intent, the Group HR and Safety Manager said:

"In terms of how each party (PSA and the company) is committed to each others' success, we do whatever needs to be done. We don't have to say we are committed to each others' success - we just behave that way."

Out of changes in union representation and the worker desire to pick up efficiency opportunities that had been shown to be beneficial to the company and staff outside Whangarei, a number of senior contracting staff, PSA and management got together to discuss what it would take to improve remuneration for all staff (not just those contracting outside Whangarei). Over a period of one year, during which time the parties were undoubtedly patient with one another, a collaborative approach resulted in the development of performance criteria and a measurement system that all parties were reasonably happy with. But this was not something that has happened by accident. As the CEO said:

"Following some bad behaviours in some meetings, we talked about Northpower being a family and needing to behave like one. At the point where we had established business in Auckland, we were at risk of having some problems around divisiveness. Mark Furey helped bring in a system where guys were assessed on performance, and that performance was recognised in their pay scheme.

We've had the philosophy that staff and management are close knit. There is recognition that experts in the field are equal to others in the company - there is mutual respect irrespective of what union staff belong to, and the agreement sits in the background."

Despite the success of the collaborative approach, the company has not attempted to force the situation across the whole company or even across all staff in Whangarei. It has taken the position that, as staff can choose which union they belong to, it is perfectly acceptable to have two collective agreements operating in the workplace. It might be considered problematical to have two unions covering the same types of worker; however, this has not proven to be the case.

"I could see a potential obstruction and big risk in the relationship between the two unions involved with Northpower. We've been careful not to favour one over another, and even though we have historically enjoyed a better communication relationship in Whangarei with the PSA, we have been more than fair in our dealings with the other, and Mark Furey would accept that. We don't want the two union groups fighting." Chief Executive

The two agreements are the Northpower/PSA agreement (Northland Contracting Collective Agreement) and the Northpower/EPMU/PSA Whangarei Employees Collective Agreement. The joint union-company agreement effectively covers all positions except those who choose to be covered by the contracting collective or individual agreements.

The Northland Contracting Collective Agreement incorporates pay rates and sets out a review and progression system that is based on nine mutually agreed criteria. This agreement provides for placement in the scale of pay to be determined by way of a personal appraisal process, undertaken at six-monthly intervals. There is a moderating committee in place to ensure decisions are fair to both parties (the employer or manager and the employee). Either party can request the moderating committee to assess the six-monthly decisions.

An interesting aspect of this system is that the parties have agreed that a worker's pay may be reduced based on their performance, but such a worker has a three-month period to improve their performance to avoid a pay reduction.

The other collective agreement has maintained what might be considered a more traditional approach, with basic and merit steps. The basic rate is for employees who perform their job satisfactorily. A merit 1 step will be awarded to employees who are assessed as consistently performing above the satisfactory level. A merit 2 step will be awarded to those seen as consistently performing at an exceptionally high level. Any merit step must be earned on a year-by-year basis so, if performance is not sustained, an employee may revert to a lower merit step or basic rate as appropriate.

An essential difference between the two agreements is that, with the Northland Contracting Collective Agreement, both parties have determined and defined the criteria. It is very clear what the expectations are for moving up or down the pay scale. In the other agreement, there is no joint agreement as to what constitutes satisfactory, above satisfactory and exceptionally high levels of performance.

Over time, more and more staff have elected to be covered by the Northland contracting agreement - probably as a direct result of the greater clarity of expectation and reward it provides. It was a small group of ten who initially developed this agreement, and it now covers approximately 70 staff.

"Once developed and evolved, the process has shown to be so robust, that I have not had cause to become involved in any disputes about its application. There were some minor bumps along the way but as all the players were aware and saw solutions develop as we went, buy-in to the process is very strong. In my experience, this is very unusual for a performance-based system." PSA Organiser

Collaborative problem-solving

Although there are other differences between the agreements, the real issue is that the opportunity for collaborative problem-solving helps build a culture of respect and trust. While the focus might have been on improving pay and productivity, the process the parties engaged in allowed them to communicate at different levels and in a non-hierarchical way.

"I asked what they really wanted, and it turned out they were a competitive bunch, proud of their work, and they wanted to be as good as they could be and paid accordingly. We collectively realised we needed to develop a pathway we could agree on, and as a first strategy, we invited management to identify what a top lineman 'looked like'. Alan [Jolly], Whangarei Contracting Manager took a while to mull this over, and when we got his answer, we looked at it and said we'd give it a go." PSA Organiser

Collaborative problem-solving hasn't been restricted to issues of performance and pay. When asked what it took to effectively solve problems using a partnership approach, the PSA Organiser said:

"I facilitate a meeting to make sure the parties say what they need to say and it's done without bitterness. I remember a meeting with Alan Jolly and a disgruntled worker, the three of us in a room. The guy, who was disgruntled, obliquely threatened him at one point but he didn't flinch a bit and, more important, didn't buy into reacting to the intimidatory behaviour. He just quietly made the right decision. He's the sort of manager who has a clear sense of what's right and what's needed to be done and does it. I didn't tell him what to do - I didn't need to. He heard what was wanted and found a way to weld it together. It requires a steely determination to do the right thing, no ego or fear."

That manager (Alan Jolly) adds to these views:

"There is a very strong family feeling in the culture. Guys are intensely loyal. You can ring any one of them at 2.00am and they will come out and help if we need it. They take intense pride in the company, in what they do and in what they can do."

In describing other aspects of the company's culture, the HR and Safety Manager said:

"We have had three Family Days where the focus has been on safety - Auckland, Whangarei and Central. They've all been on site. The idea is to bring the families in and let them see what their fathers do, the safety gear used to protect their Dad, so we create opportunities to have the safety message reinforced back at home.

There is a sense of unity between work and home. With many of our families, Dad is the centre - he has to be well in himself so it's not just about safety - there's a whole wellness issue. We don't just focus on health checks. We see it more holistically."

Delivering value to customers

Northpower clearly believes that success comes from delivering value to its customers (the concepts of hassle-free service and cost of service/value of reliable supply equation). It believes that ability to deliver value comes from having sound ideas about what customers want and value, and how to organise and manage people to produce that value. In the Northpower Contracting Collective Agreement, customer service is one of the nine specific criteria staff are assessed against.

"I think the concept of hassle-free service is brilliant. It has to be. Back in the old days, you could do whatever you wanted if you were annoyed by a customer. You could temporarily cut off their power, drive into their paddocks, whatever. Now, the image of Northpower as a community company is important. Now we understand that if you did 1,000 things right, the customers don't necessarily see that. But they do see you do wheelies up the drive, and that one thing can bugger up the image."PSA Delegate