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Adventure Steel Doors, Inc.

- Alfredo Gastonia, the new industrial relations manager at Adventures Steel Doors, Inc. believes the company's wages and industrial relations policies are unreasonable and wants to overhaul the system. - However, the general manager Peter Ventura is wary of major changes given there are no current disputes and doubts Gastonia has enough experience. - The general manager is also focused on expanding their product lines and market, winning a new contract that could be impacted by delays in delivery.

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gabriel ocampo
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120 views2 pages

Adventure Steel Doors, Inc.

- Alfredo Gastonia, the new industrial relations manager at Adventures Steel Doors, Inc. believes the company's wages and industrial relations policies are unreasonable and wants to overhaul the system. - However, the general manager Peter Ventura is wary of major changes given there are no current disputes and doubts Gastonia has enough experience. - The general manager is also focused on expanding their product lines and market, winning a new contract that could be impacted by delays in delivery.

Uploaded by

gabriel ocampo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ADVENTURES STEEL DOORS, INC.

In the building construction business, “Advent Doors” is a well-known brand


(unregistered) of steel doors manufactured and marketed by the Adventures Steel Doors,
Inc. (ASDI), a Caloocan City-based manufacturing company. ASDI makes a range of
metal doors, metal windows, and miscellaneous metal work. Its products are noted for
their high quality, and first-class workmanship. They are reasonably priced too.
The firm’s sales total about P7million annually. This was attained by a growth
that averages 5% year over the past five years. Profits have been slightly on the decline
partly due to low productivity. ASDI plans to increase sales in its Central Luzon area by
improving manufacturing efficiency. For many years, a forceful general manager who is
now at pre-retirement stage has directed the firm. Since his appointment as GM, Peter
Ventura has tried, and still does, to modernized the liberalize all aspects of the company’s
autocratic management style.
The personnel management function at ASDI is called industrial relations.
Industrial relations, a major part of top management, cover and employment;
training and communications, health and safety; employee services and benefits; labor
relations; and wage and salary administration. The IR group was previously headed by
an industrial relations manager (IRM), who died on the job only 10 months ago. Since
then, the GM has filled up the IRM-post with a young man (in his early thirties) who has
worked with the ASDI for four years as assistant industrial relations officer. Alfredo
Gastonia, the new IRM, has had limited experience in industrial relations but his
exposure in the area of wage bargaining in another company was extensive and quite
successful.
Alfredo, upon assuming his duties as IRM, was not so happy with the industrial
relations practices or patterns that he had inherited from the ex-IRM. Under the GM, the
wage policy, though simple, was defensive. Most claims put forward by the union (ASDI
has one labor union) were delayed and turned down flat by the GM. As Alfredo’s
predecessor used to say, this delayed settlement saved the company money. Besides, it
also caused some unrest at the time the decision was made.
In the past, workers who asked for upward adjustments in their wages had been
settled for the least possible amount. (The workers who did not ask for increases got
none). Thus, the wages at all levels was thus very low; there was no competition for
labor to speak of – until a new bigger competitor opened shop in the same location ASDI
was doing business. Production workers, mostly semi-skilled hands, are paid on a
piecework system, changed little in the past 10 years. There is only one union in the
factory.
Despite the firm’s autocratic policy and low wages, the labor relation’s record has
been surprisingly good. The union has only had minor work stoppages of a few hours
over the past three years, except for one that had lasted for eight weeks and also caused
considerable production losses.
The reason for the good record ( in the present labor relations) is that the union’s
head had a good working relationship with the late IRM. They were not only of the same
age but were also able to work closely in an atmosphere of trust. Thus, after a token
stoppage in work, the union usually trusted him to secure their best terms.
On the other hand, the new ASDI industrial relations manager’s attitude was that
the firm’s wages and industrial relations policy were unreasonable—not to mention the
fact that it was also unwise in the longer0term. Lately, Alfredo Gastonia noted that the
union has become more militant; it was gaining members—a positive sign of a changing
working climate. He felt that the company had been cushioned from strife by the happy
relationship of the union leadership and the former IRM.
But the union head was retiring within a year anyway. And that Gastonia was not
keen to continue relying on his goodwill. He planned to overhaul the whole archaic labor
relations; to scarp the old piece rate system; to substitute a day wage system—based on
work-study of all floor shop jobs. Yet, he suspected that two of the union top officers
would oppose his plans and they would perhaps prefer to press for better rates under the
“old” system. Gastonia also suspected probably other union officers were prepared to
cooperate, but they would demand an initial rise for cooperating.
Mr. Ventura who heard Gastonia’s proposals presented in outline form in some
meetings has reserved judgement on them. The entire product range is being trimmed
and altered to prepare for an attack on the Central Luzon market. For one, a good
contract has just been won to supply miscellaneous metal work to a large factory, but
ASDI had to sign penalty clauses to insure against late delivery.
Against this background, Mr. Ventura is wary of initiating any major changes in
the industrial relations practices of the company. He knows that there is no immediate
unrest or dispute in sight and that the ASDI production manager will be too reluctant to
cooperative anyway. He also doubts whether Gastonia has the experience to implement
any or such radical changes in the current industrial relations.
Yet the IR analysis of Gastonia was enough to earn the GM’s praises. Indeed, the
former has also the sympathy of his boss, especially in his analytical conclusion that a
change in IR is needed in the long term.

QUESTIONS
(1) If he GM postpones any actions now, will there ever be an ideal time?
(2) If the GM approves a complete revision of industrial relations, how can he be
sure everything will be adopted without serious disruption in the meanwhile?
(3) If you were to advise the GM, what will you give him?

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